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 |
||
|
||||||
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 |
||
|
||||||
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).