Research and development

Total spending on research and development went up by 4.4 per cent year on year to reach €112.6 million (H1 2018: €107.8 million), which equates to 2.6 per cent of revenue (H1 2018: 2.8 per cent). Within this total, research and development costs of €74.5 million (H1 2018: €69.3 million) were expensed, including a sum of €40.2 million for amortisation of capitalised development costs (H1 2018: €37.4 million). Additional development costs of €38.1 million (H1 2018: €38.6 million) were capitalised during the reporting period. > TABLE 15

Research and development (R&D)

15

in € million

Q2 2019

Q2 2018

Change

Q1 – Q2 2019

Q1 – Q2 2018

Change

Research and development costs (P&L)

38.0

34.4

10.6%

74.5

69.3

7.5%

Capitalised development costs

19.6

20.7

–5.1%

38.1

38.6

–1.1%

Total R&D spending

57.6

55.1

4.7%

112.6

107.8

4.4%

R&D spending as percentage of revenue

2.5%

2.7%

2.6%

2.8%

Focus of R&D in the first half of 2019

Under the KION 2027 strategy, research and development is still set up so as to provide the best possible support for the long-term success of the KION Group as the world’s second-largest manufacturer of industrial trucks and the leading provider by revenue of automation technology. This was reflected in the areas of focus during the reporting period.