Long-term leasing business

The sales activities of the KION Group are supported by financial services in connection with direct long-term leasing business. In this business, trucks leased directly to the end customer are refinanced by the KION Group. The portfolio of the long-term leasing business, which supports the KION Group’s sales activities, continued to be focused predominantly in western Europe as at 30 June 2017. The long-term leasing business had a positive impact on the KION Group’s financial performance ( > TABLE 14 ) in the first half of 2017 and also influenced its financial position ( > TABLE 15 ). This information is taken from the internal reporting system and is determined using the assumption of a minimum rate of return on the capital employed. Net financial debt relating to the long-term leasing business increased to €124.4 million (31 December 2016: €106.3 million), reflecting the expansion of these activities. > TABLE 16

Profitability of long-term leasing business

14

in € million

Q2 2017

Q2 2016

Change

Q1 – Q2 2017

Q1 – Q2 2016

Change

Revenues

124.9

109.3

14.2%

229.9

207.1

11.0%

Adjusted EBITDA

29.4

24.0

22.7%

58.1

47.4

22.5%

Adjusted EBIT

0.8

1.4

–41.1%

2.2

3.0

–26.8%

Earnings before taxes (EBT)

1.2

1.1

17.6%

2.4

2.0

17.4%

Financial position of long-term leasing business

15

in € million

30/06/2017

31/12/2016

Change

Liabilities to banks

124.4

106.3

17.0%

Liabilities from financial services

24.5

8.3

>100%

Lease liabilities

1,037.5

1,007.2

3.0%

Calculatory equity

41.6

39.4

5.8%

Total

1,228.1

1,161.2

5.8%

 

 

 

 

Leased assets

471.3

429.7

9.7%

Lease receivables

756.8

731.5

3.5%

Total

1,228.1

1,161.2

5.8%

Refinancing of long-term leasing business

16

 

30/06/2017

31/12/2016

in € million

KION Group

thereof non- current leasing business

KION Group

thereof non- current leasing business

Liabilities to banks

1,482.3

124.4

3,188.6

106.3

Promissory note – gross

1,010.0

Other financial liabilities to non-banks

8.9

7.2

./. Capitalised borrowing costs

–10.6

–12.9

Financial liabilities

2,490.6

124.4

3,183.0

106.3

 

 

 

 

 

./. Cash and cash equivalents

–157.0

–279.6

Net financial liabilities

2,333.6

124.4

2,903.4

106.3

 

 

 

 

 

Lease liabilities

1,037.5

1,037.5

1,007.2

1,007.2

Liabilities from financial services

24.5

24.5

8.3

8.3

Interest-bearing net liabilities

3,395.7

1,186.5

3,918.9

1,121.8

 

 

 

 

 

Liabilities from short-term rental financing

469.0

456.7

Liabilities from procurement leases

28.2

21.0

Liabilities from finance leases

497.2

477.7

Net operating debt

3,892.9

1,186.5

4,396.6

1,121.8