Selected notes to the consolidated income statement

Revenue

> TABLE 31 contains the product categories identified as material to the KION Group’s financial performance and the timing of revenue recognition for each of these categories.

Timing of revenue recognition with third parties

31

Product category

Business model

Timing of revenue recognition

Industrial Trucks & Services

New trucks

Sales of Industrial trucks

At a point in time

Direct leasing business and indirect end customer financing transactions (in both cases where classified as finance leases)

At a point in time

Aftersales business

Supply of spare parts

At a point in time

Individual orders for repairs and maintenance work

At a point in time

(Full) service contracts

Over a period of time

Rental business

Direct long-term rental business and indirect end customer financing transactions (in both cases where classified as operating leases)

Over a period of time

Short-term rental business

Over a period of time

Fleet management

Over a period of time

Used trucks

Sales of used industrial trucks

At a point in time

Other

Various business models, currently categorised as not material to the financial performance of the KION Group in the ITS segment

Mainly at a point in time

Supply Chain Solutions

Business solutions

Project business

Over a period of time

Service business

Modernisations and upgrades

Over a period of time

Spare parts business

At a point in time

Various business models, currently categorised as not material to the financial performance of the KION Group in the SCS segment

Mainly over a period of time

Corporate Services

 

Services

Mainly at a point in time

> TABLES 32 – 35 show revenue from contracts with customers, broken down by sales region, product category, timing of revenue recognition and segment.

Disaggregation of revenues with third parties Q2 2018

Disaggregation of revenues with third parties

32

 

Q2 2018

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Total

Western Europe

1,041.0

113.8

5.5

1,160.3

Eastern Europe

132.4

2.2

0.7

135.3

Middle East and Africa

21.0

7.9

0.0

28.9

North America

33.1

409.9

0.0

443.1

Central and South America

41.2

2.1

0.0

43.3

Asia-Pacific

178.5

41.7

0.0

220.2

Total revenue

1,447.2

577.8

6.2

2,031.1

 

 

 

 

 

New business

729.2

 

 

729.2

Service business

718.0

 

 

718.0

– Aftersales

378.6

 

 

378.6

– Rental business

221.6

 

 

221.6

– Used trucks

80.7

 

 

80.7

– Other

37.1

 

 

37.1

Business Solutions

 

450.0

 

450.0

Service business

 

127.7

 

127.7

Corporate Services

 

 

6.2

6.2

Total revenue

1,447.2

577.7

6.2

2,031.1

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

Products and services transferred at a point in time

1,100.8

59.1

4.7

1,164.6

Products and services transferred over a period of time

346.4

518.6

1.5

866.5

Disaggregation of revenues with third parties Q2 2017

Disaggregation of revenues with third parties

33

 

Q2 2017*

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Total

*

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

Western Europe

999.2

171.6

4.3

1,175.1

Eastern Europe

136.2

1.2

0.7

138.1

Middle East and Africa

23.9

10.0

0.0

33.8

North America

30.8

337.2

0.0

368.0

Central and South America

36.7

1.9

0.0

38.6

Asia-Pacific

170.8

76.8

0.0

247.6

Total revenue

1,397.5

598.7

5.1

2,001.3

 

 

 

 

 

New business

728.1

 

 

728.1

Service business

669.4

 

 

669.4

– Aftersales

350.9

 

 

350.9

– Rental business

213.6

 

 

213.6

– Used trucks

76.1

 

 

76.1

– Other

28.8

 

 

28.8

Business Solutions

 

484.2

 

484.2

Service business

 

114.6

 

114.6

Corporate Services

 

 

5.1

5.1

Total revenue

1,397.5

598.7

5.1

2,001.3

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

Products and services transferred at a point in time

1,067.6

55.0

3.7

1,126.3

Products and services transferred over a period of time

329.9

543.7

1.4

875.0

Disaggregation of revenues with third parties Q1-Q2 2018

Disaggregation of revenues with third parties

34

 

Q1-Q2 2018

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Total

Western Europe

2,040.8

215.8

10.4

2,267.0

Eastern Europe

254.3

4.4

1.5

260.1

Middle East and Africa

41.6

15.8

0.0

57.4

North America

67.4

729.8

0.0

797.2

Central and South America

74.1

3.7

0.0

77.8

Asia-Pacific

336.7

78.1

0.1

414.8

Total revenue

2,814.9

1,047.6

12.0

3,874.4

 

 

 

 

 

New business

1,404.2

 

 

1,404.2

Service business

1,410.7

 

 

1,410.7

– Aftersales

741.2

 

 

741.2

– Rental business

434.1

 

 

434.1

– Used trucks

159.4

 

 

159.4

– Other

75.9

 

 

75.9

Business Solutions

 

803.5

 

803.5

Service business

 

244.1

 

244.1

Corporate Services

 

 

12.0

12.0

Total revenue

2,814.9

1,047.6

12.0

3,874.4

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

Products and services transferred at a point in time

2,137.0

112.7

9.1

2,258.8

Products and services transferred over a period of time

677.9

934.9

2.9

1,615.6

Disaggregation of revenues with third parties Q1-Q2 2017

Disaggregation of revenues with third parties

35

 

Q1-Q2 2017*

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Total

*

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

Western Europe

1,958.7

303.0

9.6

2,271.3

Eastern Europe

249.8

3.1

1.6

254.6

Middle East and Africa

48.2

32.1

0.0

80.4

North America

59.8

591.2

0.0

651.0

Central and South America

74.5

4.5

0.0

79.0

Asia-Pacific

320.3

145.7

0.0

466.1

Total revenue

2,711.3

1,079.6

11.3

3,802.3

 

 

 

 

 

New business

1,385.8

 

 

1,385.8

Service business

1,325.5

 

 

1,325.5

– Aftersales

700.7

 

 

700.7

– Rental business

411.5

 

 

411.5

– Used trucks

146.2

 

 

146.2

– Other

67.2

 

 

67.2

Business Solutions

 

845.0

 

845.0

Service business

 

234.6

 

234.6

Corporate Services

 

 

11.3

11.3

Total revenue

2,711.3

1,079.6

11.3

3,802.3

 

 

 

 

 

Timing of revenue recognition

 

 

 

 

Products and services transferred at a point in time

2,068.1

109.6

8.5

2,186.1

Products and services transferred over a period of time

643.2

970.0

2.9

1,616.1

Net financial income / expenses

The net financial expenses, representing the balance of financial income and financial expenses, increased from €48.4 million in the first half of 2017 to €53.9 million in the first six months of this year. Current interest expense on financial liabilities decreased thanks to the corporate actions carried out in 2017, whereas currency effects had improved the level of net financial expenses in the first half of last year.

Income taxes

In the consolidated interim financial statements, income taxes for the current reporting period are calculated on the basis of the expected income tax rate for the full year.

Earnings per share

Basic earnings per share is calculated by dividing the net income (loss) for the period accruing to the KION GROUP AG shareholders by the weighted average number of shares outstanding during the reporting period (H1 2018: 117,929,171 no-par-value shares; H1 2017: 110,680,763 no-par-value shares; Q2 2018: 117,929,171 no-par-value shares; Q2 2017: 112,713,426 no-par-value shares). In the first half of 2018, the KION Group generated net income accruing to the shareholders of KION GROUP AG of €148.5 million (H1 2017: €144.0 million). Information about determining the net income (loss) for the period accruing to the KION GROUP AG shareholders can be found in the consolidated income statement. Basic earnings per share for the reporting period came to €1.26 (H1 2017: €1.30). The 160,829 no-par-value treasury shares repurchased by KION GROUP AG were not included in this figure as at 30 June 2018 (30 June 2017: 164,486).

Diluted earnings per share is calculated by adding the potential dilutive no-par-value shares that employees can obtain for free under the employee share option programme to the weighted average number of shares outstanding during the reporting period. The calculation of diluted earnings per share was based on a weighted average for the first half of 2018 of 117,965,044 no-par-value shares issued (H1 2017: 110,729,900 no-par-value shares; Q2 2018: 117,964,950 no-par-value shares; Q2 2017: 112,763,760 no-par-value shares). Diluted earnings per share for the reporting period came to €1.26 (H1 2017: €1.30).