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 organizational 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.
The following tables show information on the KION Group’s operating segments for the third quarter of 2020 and 2019 and for the first three quarters of 2020 and 2019.
in € million |
Industrial Trucks & Services |
Supply Chain Solutions |
Corporate Services |
Consolidation / Reconciliation |
Total |
||||
|---|---|---|---|---|---|---|---|---|---|
Revenue from external customers |
1,402.7 |
662.5 |
7.7 |
– |
2,072.9 |
||||
Intersegment revenue |
1.6 |
1.5 |
81.2 |
–84.4 |
– |
||||
Total revenue |
1,404.3 |
664.0 |
88.9 |
–84.4 |
2,072.9 |
||||
Earnings before tax |
84.5 |
43.0 |
–2.9 |
–6.7 |
118.0 |
||||
Net financial expenses |
–6.6 |
–7.3 |
–3.3 |
– |
–17.2 |
||||
EBIT |
91.2 |
50.3 |
0.4 |
–6.7 |
135.2 |
||||
+ Non-recurring items |
1.5 |
0.1 |
0.6 |
– |
2.2 |
||||
+ PPA items |
0.2 |
21.4 |
0.0 |
– |
21.6 |
||||
+ Adjusted EBIT |
92.9 |
71.9 |
1.0 |
–6.7 |
159.1 |
||||
Capital expenditure1 |
42.5 |
14.5 |
2.9 |
– |
59.8 |
||||
Amortization and depreciation2 |
35.0 |
9.7 |
5.2 |
– |
49.9 |
||||
Order intake |
1,421.8 |
887.6 |
88.9 |
–83.1 |
2,315.3 |
||||
|
|||||||||
in € million |
Industrial Trucks & Services |
Supply Chain Solutions |
Corporate Services |
Consolidation / Reconciliation |
Total |
||||
|---|---|---|---|---|---|---|---|---|---|
Revenue from external customers |
1,551.7 |
600.2 |
8.1 |
– |
2,160.0 |
||||
Intersegment revenue |
1.1 |
0.4 |
85.6 |
–87.1 |
– |
||||
Total revenue |
1,552.8 |
600.6 |
93.8 |
–87.1 |
2,160.0 |
||||
Earnings before tax |
157.6 |
36.9 |
–14.8 |
–10.2 |
169.4 |
||||
Net financial expenses |
–11.8 |
–5.9 |
–7.7 |
– |
–25.4 |
||||
EBIT |
169.4 |
42.7 |
–7.1 |
–10.2 |
194.9 |
||||
+ Non-recurring items |
0.1 |
0.4 |
0.3 |
– |
0.8 |
||||
+ PPA items |
0.2 |
21.2 |
0.0 |
– |
21.4 |
||||
+ Adjusted EBIT |
169.8 |
64.4 |
–6.9 |
–10.2 |
217.1 |
||||
Capital expenditure1 |
58.9 |
11.5 |
4.4 |
– |
74.8 |
||||
Amortization and depreciation2 |
29.7 |
10.3 |
4.4 |
– |
44.3 |
||||
Order intake |
1,493.8 |
838.6 |
93.8 |
–88.5 |
2,337.6 |
||||
|
|||||||||
in € million |
Industrial Trucks & Services |
Supply Chain Solutions |
Corporate Services |
Consolidation / Reconciliation |
Total |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue from external customers |
4,106.0 |
1,876.0 |
18.2 |
– |
6,000.2 |
||||||
Intersegment revenue |
2.9 |
3.9 |
244.4 |
–251.1 |
– |
||||||
Total revenue |
4,108.9 |
1,879.8 |
262.6 |
–251.1 |
6,000.2 |
||||||
Earnings before tax |
152.4 |
96.3 |
–7.4 |
–32.5 |
208.8 |
||||||
Net financial expenses |
–30.7 |
–20.8 |
–12.6 |
– |
–64.1 |
||||||
EBIT |
183.1 |
117.1 |
5.2 |
–32.5 |
272.8 |
||||||
+ Non-recurring items |
21.5 |
1.2 |
1.9 |
– |
24.6 |
||||||
+ PPA items |
0.6 |
65.8 |
0.0 |
– |
66.4 |
||||||
= Adjusted EBIT |
205.3 |
184.0 |
7.1 |
–32.5 |
363.8 |
||||||
Segment assets |
10,500.9 |
5,306.2 |
2,119.2 |
–3,741.1 |
14,185.1 |
||||||
Segment liabilities |
7,557.4 |
2,399.6 |
4,496.6 |
–3,740.7 |
10,712.9 |
||||||
Capital expenditure1 |
141.0 |
36.8 |
12.0 |
– |
189.9 |
||||||
Amortization and depreciation2 |
99.9 |
29.9 |
13.7 |
– |
143.5 |
||||||
Order intake |
4,076.7 |
2,631.5 |
262.6 |
–255.5 |
6,715.4 |
||||||
Number of employees3 |
25,740 |
8,753 |
1,493 |
– |
35,986 |
||||||
|
|||||||||||
in € million |
Industrial Trucks & Services |
Supply Chain Solutions |
Corporate Services |
Consolidation / Reconciliation |
Total |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue from external customers |
4,695.3 |
1,809.8 |
19.1 |
– |
6,524.2 |
||||||
Intersegment revenue |
4.3 |
1.7 |
231.5 |
–237.5 |
– |
||||||
Total revenue |
4,699.6 |
1,811.5 |
250.6 |
–237.5 |
6,524.2 |
||||||
Earnings before tax |
456.4 |
88.3 |
67.3 |
–133.7 |
478.2 |
||||||
Net financial expenses |
–39.3 |
–18.3 |
–18.3 |
– |
–75.9 |
||||||
EBIT |
495.7 |
106.6 |
85.6 |
–133.7 |
554.1 |
||||||
+ Non-recurring items |
–0.0 |
5.0 |
0.4 |
– |
5.4 |
||||||
+ PPA items |
0.6 |
64.6 |
0.0 |
– |
65.2 |
||||||
= Adjusted EBIT |
496.3 |
176.2 |
86.0 |
–133.7 |
624.7 |
||||||
Segment assets |
10,253.0 |
5,095.2 |
1,789.7 |
–3,357.9 |
13,780.1 |
||||||
Segment liabilities |
7,338.1 |
2,108.4 |
4,294.0 |
–3,357.2 |
10,383.4 |
||||||
Capital expenditure1 |
144.4 |
30.8 |
12.5 |
– |
187.8 |
||||||
Amortization and depreciation2 |
87.0 |
28.4 |
12.7 |
– |
128.0 |
||||||
Order intake |
4,577.5 |
1,947.6 |
250.6 |
–241.2 |
6,534.5 |
||||||
Number of employees3 |
26,150 |
7,202 |
1,086 |
– |
34,438 |
||||||
|
|||||||||||
In the first nine months of 2020, revenue of €613.3 million (Q1–Q3 2019: €474.9 million) was generated from one single external customer and predominantly in the Supply Chain Solutions segment. The decline in revenue in the Industrial Trucks & Services segment in the first nine months of 2020 meant that an even higher proportion of the KION Group’s total revenue was attributable to this customer.
The non-recurring items in the first nine months of 2020 mainly related to the Industrial Trucks & Services segment and included the impairment loss of €10.7 million recognized on the long-term equity investment in Linde Hydraulics GmbH & Co. KG, which is accounted for using the equity method, and a capacity and structural program initiated in 2020 for which an amount of €12.1 million has already been recognized as a negative non-recurring item with an impact on EBIT. The capacity and structural program, which mainly affects the Industrial Trucks & Services segment, is aimed at streamlining and optimizing the organizational structures and capacity in production, sales, and service, particularly in Europe, to reflect the anticipated medium-term market environment after the coronavirus pandemic. The expenditure of €8.5 million on the already ongoing realignment of the sales organization in the United Kingdom was also included.