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.

Profitability of long-term leasing business

14

in € million

Q2 2018

Q2 2017*

Change

Q1 – Q2 2018

Q1 – Q2 2017*

Change

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

Revenue

255.1

237.3

7.5%

494.6

439.5

12.5%

Adjusted EBITDA

76.9

83.4

–7.7%

155.9

156.3

–0.3%

Adjusted EBIT

3.0

2.6

13.7%

6.4

5.6

14.4%

Earnings before taxes (EBT)

2.1

2.0

7.8%

4.2

3.8

9.1%

Financial position of long-term leasing business

15

in € million

30/06/2018

31/12/2017*

Change

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

Liabilities to banks

374.8

481.6

–22.2%

Liabilities from financial services

772.3

437.4

76.6%

Lease liabilities

910.1

1,131.1

–19.5%

Calculatory equity

72.2

71.9

0.3%

Total

2,129.5

2,122.1

0.3%

 

 

 

 

Leased assets

1,208.2

1,246.3

–3.1%

Lease receivables

921.2

875.8

5.2%

Total

2,129.5

2,122.1

0.3%

Industrial net operating debt

16

in € million

30/06/2018

31/12/2017*

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

Liabilities to banks

1,249.7

1,253.7

Promissory note

1,212.9

1,007.3

Other financial liabilities to non-banks

5.4

7.7

Financial liabilities

2,467.9

2,268.7

 

 

 

Less cash and cash equivalents

–180.4

–173.2

Net financial debt

2,287.5

2,095.5

 

 

 

Liabilities from financial services (rental)

170.2

Liabilities from short-term rental fleet financing

358.3

515.7

Liabilities from rental business

528.6

515.7

 

 

 

Liabilities from procurement leases

393.3

369.1

Industrial net operating debt

3,209.4

2,980.4