Segment report

The Executive Board, as the chief operating decision-maker (CODM), manages the KION Group on the basis of the following segments: Industrial Trucks & Services, Supply Chain Solutions and Corporate Services. Segment reporting therefore takes into account the organisational and strategic focus of the KION Group.

The KPIs used to manage the segments are order intake, revenue and adjusted EBIT. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) – including effects from purchase price allocations and non-recurring items – to the adjusted EBIT for the segments (‘adjusted EBIT’).

> TABLES 21 – 22 show information on the KION Group’s operating segments for the first quarters of 2017 and 2016.

Segment report Q1 2017

21

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1

Capital expenditure including capitalised development costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excluding leased and rental assets

3

Number of employees (full-time equivalents) as at 31/03/2017; allocation according to the contractual relationships

Revenue from external customers

1,322.9

482.2

6.2

–

1,811.4

Intersegment revenue

0.3

0.7

57.9

–58.9

–

Total revenue

1,323.2

483.0

64.1

–58.9

1,811.4

Earnings before taxes

118.0

–27.9

147.3

–176.7

60.7

Financial income

11.2

4.3

11.9

–7.0

20.4

Financial expenses

–21.5

–14.6

–25.1

5.0

–56.2

= Net financial expenses / income

–10.4

–10.3

–13.2

–2.0

–35.8

EBIT

128.4

–17.6

160.6

–174.7

96.6

+ Non-recurring items

0.5

5.4

3.8

–

9.7

+ PPA items

0.2

46.4

0.0

–

46.6

= Adjusted EBIT

129.1

34.2

164.4

–174.7

152.9

Segment assets

8,747.8

4,711.6

1,422.3

–3,328.5

11,553.2

Segment liabilities

4,582.0

2,128.7

5,630.9

–3,348.4

8,993.2

Carrying amount of equity-accounted investments

72.6

0.0

0.0

–

72.6

Loss from equity-accounted investments

–0.5

0.0

0.0

–

–0.5

Capital expenditure1

28.8

11.0

2.9

–

42.7

Amortisation and depreciation2

27.2

53.2

4.2

–

84.6

Order intake

1,414.6

461.3

64.1

–58.3

1,881.7

Number of employees3

23,142

6,869

669

–

30,680

Segment report for Q1 2016

22

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1

Capital expenditure including capitalised development costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excluding leased and rental assets

3

Number of employees (full-time equivalents) as at 31/03/2016; allocation according to the contractual relationships

Revenue from external customers

1,196.9

19.8

4.0

–

1,220.6

Intersegment revenue

0.1

0.0

49.0

–49.2

–

Total revenue

1,197.0

19.8

53.0

–49.2

1,220.6

Earnings before taxes

94.4

–1.5

–44.3

–0.0

48.5

Financial income

14.2

0.0

8.0

–3.3

18.9

Financial expenses

–23.3

–0.1

–39.3

3.3

–59.3

= Net financial expenses / income

–9.0

–0.1

–31.3

0.0

–40.4

EBIT

103.4

–1.4

–13.0

–0.0

89.0

+ Non-recurring items

1.7

0.6

0.6

–

2.9

+ PPA items

6.7

0.0

0.0

–

6.7

= Adjusted EBIT

111.8

–0.8

–12.4

–0.0

98.6

Segment assets

8,425.2

153.7

595.4

–2,577.8

6,596.6

Segment liabilities

4,188.2

81.8

3,106.1

–2,587.3

4,788.8

Carrying amount of equity-accounted investments

74.1

0.0

0.0

–

74.1

Profit from equity-accounted investments

0.2

0.0

0.0

–

0.2

Capital expenditure1

25.4

0.3

2.1

–

27.8

Amortisation and depreciation2

33.4

0.8

4.2

–

38.4

Order intake

1,257.3

35.1

53.0

–48.8

1,296.7

Number of employees3

22,725

475

561

–

23,761

The non-recurring items in the reporting quarter were primarily incurred in connection with Dematic and relate to the integration and the start-up costs in Monterrey (Mexico). They totalled €9.7 million (Q1 2016: €2.9 million).

The effects from purchase price allocations comprised net write-downs and other expenses in relation to the hidden reserves and charges identified as part of the acquisition processes.

Wiesbaden, 26 April 2017
The Executive Board