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 |
||
|
||||||||
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 |
||
|
|||||
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* |
||
|
||||
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.