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 |