Long-term leasing business and industrial net operating debt

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 September 2018. The long-term leasing business had a positive impact on the KION Group’s financial performance ( > TABLE 13) in the first nine months of the year and also made a noticeable contribution to its financial position. > TABLE 14 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.

Profitability of long-term leasing business

13

in € million

Q3 2018

Q3 2017*

Change

Q1 – Q3 2018

Q1 – Q3 2017*

Change

*

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

Revenue

276.1

254.1

8.7%

770.7

693.6

11.1%

Adjusted EBITDA

80.3

85.1

–5.6%

236.2

241.4

–2.2%

Adjusted EBIT

2.2

2.1

8.5%

8.7

7.7

12.8%

Earnings before taxes (EBT)

2.2

2.0

11.6%

6.4

5.8

10.0%

Financial position of long-term leasing business

14

in € million

30/09/2018

31/12/2017*

Change

*

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

Liabilities to banks

380.5

481.6

–21.0%

Liabilities from financial services

911.5

437.4

>100%

Lease liabilities

820.0

1,131.1

–27.5%

Calculatory equity

74.1

71.9

3.0%

Total

2,186.1

2,122.1

3.0%

 

 

 

 

Leased assets

1,207.5

1,246.3

–3.1%

Lease receivables

978.6

875.8

11.7%

Total

2,186.1

2,122.1

3.0%

Industrial net operating debt consists solely of the liabilities attributable to the KION Group’s industrial business, which include net financial debt plus liabilities from rental business and liabilities from procurement leases. As a result, industrial net operating debt amounted to €3,169.3 million (31 December 2017: €2,980.4 million). > TABLE 15

Industrial net operating debt

15

in € million

30/09/2018

31/12/2017*

*

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

Liabilities to banks

1,184.5

1,253.7

Promissory note

1,211.4

1,007.3

Other financial liabilities to non-banks

3.4

7.7

Financial liabilities

2,399.3

2,268.7

 

 

 

Less cash and cash equivalents

–165.2

–173.2

Net financial debt

2,234.1

2,095.5

 

 

 

Liabilities from financial services (rental)

229.9

Liabilities from short-term rental fleet financing

321.9

515.7

Liabilities from rental business

551.8

515.7

 

 

 

Liabilities from procurement leases

383.4

369.1

Industrial net operating debt

3,169.3

2,980.4

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.