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 continued to be focused predominantly in western Europe as at 30 June 2018. The long-term leasing business had a positive impact on the KION Group’s financial performance ( > TABLE 14) in the first half of 2018 and also made a visible contribution to 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. Industrial net operating debt consists solely of the liabilities attributable to the KION Group’s industrial business, which comprise net financial debt plus liabilities from rental business and liabilities from procurement leases. As a result, industrial net operating debt amounted to €3,209.4 million (31 December 2017: €2,980.4 million). > TABLE 16 This equated to 2.7 times the adjusted EBITDA on an annualised basis less the EBITDA for the long-term leasing business on an annualised basis.