Segment report

The Executive Board, as the chief operating decision-maker (CODM), manages the KION Group on the basis of the following segments: Industrial Trucks & Services, Supply Chain Solutions and Corporate Services. Segment reporting therefore takes into account the organisational and strategic focus of the KION Group.

The KPIs used to manage the segments are order intake, revenue and adjusted EBIT. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) – including effects from purchase price allocations and non-recurring items – to the adjusted EBIT for the segments (‘adjusted EBIT’).

Tables 21 – 24 show information on the KION Group’s operating segments for the third quarter of 2018 and 2017 and for the first nine months of 2018 and 2017.

Segment report Q3 2018

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1	Capital expenditure including capitalised development costs, excluding right of use assets
2	On intangible assets and property, plant and equipment (excluding right of use assets and PPA items)

Revenue from external customers

1,417.1

472.3

6.5

–

1,895.9

Intersegment revenue

0.8

0.4

65.9

–67.1

–

Total revenue

1,417.9

472.7

72.4

–67.1

1,895.9

Earnings before taxes

139.7

16.2

22.5

–37.0

141.4

Net financial expenses / income

–16.5

–4.8

–5.9

0.0

–27.2

EBIT

156.2

20.9

28.4

–37.0

168.6

+ Non-recurring items

1.0

0.1

–

1.3

+ PPA items

0.2

22.7

0.0

–

22.9

= Adjusted EBIT

157.4

43.8

28.5

–37.0

192.7

Capital expenditure¹

46.6

11.1

2.5

–

60.2

Amortisation and depreciation²

28.5

7.3

3.9

–

39.7

Order intake

1,454.8

598.5

72.4

–65.4

2,060.3

Segment report Q3 2017^*

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1	Capital expenditure including capitalised development costs, excluding right of use assets
2	On intangible assets and property, plant and equipment (excluding right of use assets and PPA items)
*	Segment report for 2017 was adjusted due to the initial application of IFRS 15 and IFRS 16

Revenue from external customers

1,311.3

514.9

6.2

–

1,832.4

Intersegment revenue

1.6

1.2

64.0

–66.8

–

Total revenue

1,312.9

516.1

70.2

–66.8

1,832.4

Earnings before taxes

133.3

7.2

0.2

–24.7

116.0

Net financial expenses / income

–16.1

2.3

–6.3

0.0

–20.1

EBIT

149.4

4.9

6.5

–24.7

136.1

+ Non-recurring items

0.7

8.6

2.2

–

11.5

+ PPA items

0.2

47.7

0.0

–

47.9

= Adjusted EBIT

150.3

61.2

8.7

–24.7

195.5

Capital expenditure¹

37.7

8.3

3.5

–

49.5

Amortisation and depreciation²

26.2

5.9

3.3

–

35.4

Order intake

1,351.6

492.7

70.2

–67.2

1,847.2

Segment report Q1 – Q3 2018

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1	Capital expenditure including capitalised development costs, excluding right of use assets
2	On intangible assets and property, plant and equipment (excluding right of use assets and PPA items)
3	Number of employees (full-time equivalents) as at 30/09/2018; allocation according to the contractual relationships

Revenue from external customers

4,231.9

1,519.9

18.5

–

5,770.3

Intersegment revenue

4.3

2.3

204.9

–211.5

–

Total revenue

4,236.2

1,522.2

223.3

–211.5

5,770.3

Earnings before taxes

382.6

27.5

81.1

–135.7

355.4

Net financial expenses / income

–46.9

–14.7

–19.5

0.0

–81.1

EBIT

429.5

42.2

100.6

–135.7

436.6

+ Non-recurring items

0.7

2.7

0.8

–

4.3

+ PPA items

11.4

85.4

0.0

–

96.8

= Adjusted EBIT

441.6

130.3

101.4

–135.7

537.6

Segment assets

9,256.4

4,846.9

1,678.3

–2,897.7

12,883.9

Segment liabilities

6,375.5

2,035.1

4,226.3

–2,905.5

9,731.4

Capital expenditure¹

124.5

33.4

6.2

–

164.1

Amortisation and depreciation²

84.4

20.7

11.6

–

116.8

Order intake

4,486.4

1,868.9

223.3

–209.4

6,369.3

Number of employees³

25,411

6,781

760

–

32,952

Segment report Q1 – Q3 2017^*

in € million

Industrial Trucks & Services

Supply Chain Solutions

Corporate Services

Consolidation / Reconciliation

Total

1	Capital expenditure including capitalised development costs, excluding right of use assets
2	On intangible assets and property, plant and equipment (excluding right of use assets and PPA items)
3	Number of employees (full-time equivalents) as at 30/09/2017; allocation according to the contractual relationships
*	Segment report for 2017 was restated due to the initial application of IFRS 15 and IFRS 16

Revenue from external customers

4,022.6

1,594.5

17.5

–

5,634.7

Intersegment revenue

2.5

3.0

182.6

–188.1

–

Total revenue

4,025.2

1,597.6

200.1

–188.1

5,634.7

Earnings before taxes

398.5

3.2

232.1

–310.9

322.9

Net financial expenses / income

–36.9

–0.6

–29.8

–1.1

–68.4

EBIT

435.3

3.8

261.9

–309.7

391.3

+ Non-recurring items

0.7

17.1

8.9

–

26.8

+ PPA items

0.6

138.8

0.0

–

139.5

= Adjusted EBIT

436.7

159.8

270.8

–309.7

557.5

Segment assets

9,920.5

5,122.5

1,671.9

–4,450.6

12,264.4

Segment liabilities

5,810.1

2,431.2

5,622.0

–4,459.2

9,404.2

Capital expenditure¹

97.0

30.3

9.6

–

136.9

Amortisation and depreciation²

77.7

19.4

11.3

–

108.4

Order intake

4,279.9

1,406.3

200.1

–186.8

5,699.5

Number of employees³

23,714

6,972

679

–

31,365

Non-recurring items in the reporting period resulted in an expense of €4.3 million (Q1 – Q3 2017: expense of €26.8 million) and in the prior-year period related to the integration of Dematic and start-up costs at the production site in Mexico.

The effects from purchase price allocations comprised net write-downs and other expenses in relation to the hidden reserves and charges identified as part of the acquisition processes.

Frankfurt am Main, 24 October 2018

The Executive Board

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Segment report