Financial position
The principles and objectives applicable to financial management as at September 30, 2021 were largely the same as those described in the 2020 combined management report.
Analysis of capital structure
Non-current and current liabilities amounted to €10,256.2 million as at September 30, 2021, which was €471.4 million higher than the figure as at December 31, 2020 of €9,784.8 million. This was primarily driven by the growth in trade payables and liabilities from the leasing business in line with the volume of business.
Non-current and current financial liabilities stood at €1,246.0 million, which was higher than at the end of 2020 (December 31, 2020: €1,194.5 million).
Non-current financial liabilities fell to €876.0 million (December 31, 2020: €1,117.4 million), partly because of the repayment of the variable-rate tranche of the promissory note with a nominal amount of €167.0 million in April 2021. As a result of this repayment, the carrying amount of non-current promissory notes stood at only €326.6 million as at September 30, 2021 (December 31, 2020: €590.0 million). Alongside this, non-current financial liabilities largely comprised the corporate bond issued, which had a carrying amount of €495.3 million (December 31, 2020: €494.5 million).
Current financial liabilities rose to €370.1 million as at September 30, 2021 (December 31, 2020: €77.1 million). This rise was largely due to issuances under the commercial paper program in order to fund the higher level of net working capital. Another reason was that, unlike at the end of 2020, the fixed-rate tranche of the promissory note maturing in May 2022 and with a nominal amount of €92.5 million is now recognized under current financial liabilities. Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €931.0 million as at September 30, 2021 (December 31, 2020: €880.0 million). This equated to 0.5 times adjusted EBITDA on an annualized basis (December 31, 2020: 0.6 times). To reconcile the net financial debt to the industrial net operating debt of €1,913.7 million as at September 30, 2021 (December 31, 2020: €1,912.6 million), the liabilities from the short-term rental business of €468.7 million and the liabilities from procurement leases of €514.0 million are added to net financial debt.
in € million |
Sep. 30, 2021 |
Dec. 31, 2020 |
Change |
|---|---|---|---|
Promissory notes |
419.1 |
590.0 |
–29.0% |
Bonds |
495.3 |
494.5 |
0.2% |
Liabilities to banks |
88.9 |
77.1 |
15.4% |
Other financial debt |
242.7 |
32.9 |
> 100.0% |
Financial debt |
1,246.0 |
1,194.5 |
4.3% |
Less cash and cash equivalents |
–315.0 |
–314.4 |
–0.2% |
Net financial debt |
931.0 |
880.0 |
5.8% |
Liabilities from short-term rental business |
468.7 |
505.6 |
–7.3% |
Liabilities from procurement leases |
514.0 |
527.0 |
–2.5% |
Industrial net operating debt |
1,913.7 |
1,912.6 |
0.1% |
Non-current and current liabilities from the leasing business rose to €2,991.5 million as at September 30, 2021 (December 31, 2020: €2,739.3 million). Of this total, €2,767.8 million was attributable to financing of the direct leasing business (December 31, 2020: €2,483.6 million) and €223.7 million to the repurchase obligations resulting from the indirect leasing business (December 31, 2020: €255.7 million).
Non-current and current liabilities from the short-term rental business, which totaled €468.7 million (December 31, 2020: €505.6 million), declined as a result of the decrease in rental assets.
Non-current and current other financial liabilities stood at €622.0 million as at the end of the reporting period (December 31, 2020: €646.9 million). This item included liabilities from procurement leases amounting to €514.0 million (December 31, 2020: €527.0 million), for which right-of-use assets were recorded. Contract liabilities, of which a large proportion related to the long-term project business in the Supply Chain Solutions segment, stood at €566.4 million (December 31, 2020: €550.8 million).
The retirement benefit obligation and similar obligations fell to €1,263.7 million owing to higher discount rates (December 31, 2020: €1,450.3 million).
Consolidated equity rose by €697.6 million to €4,968.5 million as at the end of the third quarter (December 31, 2020: €4,270.8 million). The net income of €430.8 million earned during the period under review contributed to the rise in equity, as did the actuarial gains and losses arising from the measurement of pensions, which amounted to a net gain of €178.6 million (after deferred taxes) and were recognized in other comprehensive income. The currency translation gains of €145.6 million, also recognized in other comprehensive income, had a substantial positive impact on equity too. KION GROUP AG’s dividend payout reduced equity by €53.7 million. Overall, the equity ratio improved to 32.6 percent (December 31, 2020: 30.4 percent).