Financial position

The principles and objectives applicable to financial management as at 30 June 2018 were the same as those described in the 2017 combined management report.

In January 2018, the term of the revolving credit facility of €1,150.0 million agreed under the senior facilities agreement (SFA) was extended by a year, which means the KION Group can now utilise this credit facility until February 2023. In June 2018, the KION Group issued a further promissory note. It has a volume of €200.0 million and will mature in 2025. The resulting funds were used to repay part of the long-term tranche drawn down under the acquisition facilities agreement (AFA). Consequently, the only outstanding liability in connection with the AFA entered into in order to fund the acquisition of Dematic is the floating-rate long-term tranche of €800.0 million (31 December 2017: €1,000.0 million), which is due to mature in October 2021. The risk of a change in fair value has been hedged using an interest-rate swap with matching maturity. The hedging transaction is recognised as a fair value hedge.

The KION Group has issued guarantees to the banks for all of the payment obligations under the SFA and AFA and it is the borrower in respect of all the payment obligations resulting from the promissory note. All covenants were complied with as at 30 June 2018.