Selected notes to the condensed consolidated statement of financial position
Goodwill and other intangible assets
Goodwill amounted to €3,474.3 million as at June 30, 2021 (December 31, 2020: €3,407.6 million). Based on the provisional purchase price allocation, the acquisition of German dealer Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG resulted in an €8.4 million increase in goodwill. Currency effects of €58.3 million also caused goodwill to increase.
As at June 30, 2021, the value of the brand names stood at €939.4 million and the total carrying amount for technology and development assets at €660.2 million (December 31, 2020: €939.1 million and €656.5 million respectively).
At €554.1 million, sundry other intangible assets were €2.2 million below their carrying amount as at December 31, 2020 of €556.3 million and were primarily in connection with customer relationships.
Other property, plant and equipment
Other property, plant and equipment totaled €1,329.3 million (December 31, 2020: €1,316.6 million) and included a figure of €489.1 million for right-of-use assets related to procurement leases (December 31, 2020: €492.5 million). Of this figure, €372.0 million was attributable to land and buildings (December 31, 2020: €375.0 million) and €117.1 million to plant & machinery and office furniture & equipment (December 31, 2020: €117.5 million).
Inventories
The reported inventories break down as follows:
in € million |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
Materials and supplies |
334.0 |
280.5 |
Work in progress |
259.3 |
162.2 |
Finished goods and merchandise |
687.4 |
618.7 |
Advances paid |
57.8 |
39.5 |
Total inventories |
1,338.4 |
1,101.0 |
Write-downs of €2.7 million were recognized on inventories in the second quarter of 2021 (Q2 2020: €11.1 million) and of €10.5 million in the first six months of 2021 (H1 2020: €17.3 million). Reversals of write-downs had to be recognized in the amount of €1.0 million in the second quarter of 2021 (Q2 2020: €2.2 million) and in the amount of €3.8 million in the first six months of 2021 (H1 2020: €4.5 million) because the reasons for the write-downs no longer applied.
Trade receivables
The trade receivables break down as follows:
in € million |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
Receivables from third parties |
1,216.5 |
1,165.5 |
Receivables from third parties measured at fair value through profit or loss (FVPL) |
21.2 |
21.6 |
Trade receivables from non-consolidated subsidiaries, equity-accounted investments and other investments |
51.3 |
43.4 |
Valuation allowances for trade receivables |
–55.7 |
–57.9 |
Total trade receivables |
1,233.2 |
1,172.7 |
Equity
As at June 30, 2021, the Company’s share capital amounted to €131.2 million, which was unchanged on December 31, 2020 and was fully paid up. It was divided into 131,198,647 no-par-value shares.
The total number of shares outstanding as at June 30, 2021 was 131,086,470 no-par-value shares (December 31, 2020: 131,086,470 no-par-value shares). At the reporting date, KION GROUP AG held 112,177 treasury shares (December 31, 2020: 112,177).
The distribution of a dividend of €0.41 per share to the shareholders of KION GROUP AG resulted in an outflow of funds of €53.7 million in May 2021. In 2020, a dividend of €0.04 per dividend-bearing share – a total of €4.7 million – was decided upon in light of the coronavirus pandemic and the unpredictability of its likely impact. This dividend was paid in July 2020.
Retirement benefit obligation and similar obligations
For the purposes of the interim report, a qualified estimate of the defined benefit obligation was made on the basis of the change in actuarial parameters in the period under review.
The retirement benefit obligation and similar obligations were lower than they had been at the end of 2020 owing to actuarial gains that resulted from higher discount rates in all three currency areas. The present value of the defined benefit obligation was calculated on the basis of the discount rates shown in the following table.
|
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
Germany |
1.15% |
0.65% |
UK |
1.75% |
1.25% |
Other (weighted average) |
1.94% |
1.59% |
The change in estimates relating to defined benefit pension entitlements resulted in a €151.8 million increase in equity as at June 30, 2021 (after deferred taxes). Overall, the net obligation under defined benefit pension plans fell to €1,205.9 million (December 31, 2020: €1,400.0 million). This consisted of €1,275.5 million recognized under the retirement benefit obligation and similar obligations (December 31, 2020: €1,450.3 million) less an amount of €69.6 million (December 31, 2020: €50.4 million) recognized under other non-current assets.
Financial liabilities
The non-current and current financial liabilities totaling €1,031.4 million (December 31, 2020: €1,194.5 million) included promissory notes amounting to €419.2 million as at June 30, 2021 (December 31, 2020: €590.0 million). The variable-rate tranche of the promissory note that matures in April 2024 and has a nominal value of €167.0 million was repaid ahead of schedule on April 30, 2021.
A corporate bond of €495.0 million (December 31, 2020: €494.5 million) and liabilities to banks of €84.3 million (December 31, 2020: €77.1 million) were also included under financial liabilities.
Liabilities from leasing business
Non-current and current liabilities from the leasing business totaled €2,942.1 million (December 31, 2020: €2,739.3 million) and could be broken down into a sum of €2,707.0 million (December 31, 2020: €2,483.6 million) that related to the financing of the direct leasing business and a sum of €235.1 million (December 31, 2020: €255.7 million) that related to repurchase obligations resulting from the indirect leasing business.
in € million |
Jun. 30, 2021 |
Dec. 31, 2020 |
||
|---|---|---|---|---|
Non-current liabilities from lease business |
1,810.1 |
1,715.1 |
||
thereof from sale and leaseback sub-lease transactions |
792.7 |
788.4 |
||
thereof from lease facilities |
5.6 |
5.9 |
||
thereof from asset-backed securities |
842.5 |
734.2 |
||
thereof from repurchase obligations (indirect lease business) |
169.4 |
186.5 |
||
|
|
|
||
Current liabilities from lease business |
1,132.0 |
1,024.2 |
||
thereof from sale and leaseback sub-lease transactions |
347.2 |
336.6 |
||
thereof from lease facilities1 |
461.0 |
405.4 |
||
thereof from asset-backed securities |
258.1 |
213.1 |
||
thereof from repurchase obligations (indirect lease business) |
65.7 |
69.2 |
||
|
||||
Liabilities arising from sale and leaseback sub-lease transactions included liabilities of €168.7 million (December 31, 2020: €242.2 million) that related to sale and leaseback sub-lease transactions entered into up to December 31, 2017.
Liabilities from securitizations included notes of €623.2 million (December 31, 2020: €519.8 million) issued by K-Lift S.A., Luxembourg.
Liabilities from the short-term rental business
Non-current and current liabilities from the short-term rental business totaled €481.7 million (December 31, 2020: €505.6 million) and related to the financing of industrial trucks for the short-term rental fleet.
Included in this amount were liabilities of €65.2 million (December 31, 2020: €94.2 million) that related to sale and leaseback sub-lease transactions entered into up to December 31, 2017.
Contract balances
Contract assets rose by €158.5 million to €330.6 million as at June 30, 2021 (December 31, 2020: €172.1 million). The assets mainly related to work under project business contracts that has not yet been invoiced.
Of the contract liabilities, €429.1 million was attributable to project business contracts with a net debit balance due to customers as at the reporting date (December 31, 2020: €439.2 million) and €132.9 million to prepayments received from customers (December 31, 2020: €111.6 million). The contract liabilities related to services that are still to be provided but for which payments from customers have been received.
Other financial liabilities
Non-current and current other financial liabilities totaled €641.4 million (December 31, 2020: €646.9 million) and included a figure of €523.0 million for liabilities from procurement leases (December 31, 2020: €527.0 million).