Financial position
The principles and objectives applicable to financial management as at June 30, 2022 were largely the same as those described in the 2021 combined management report.
Analysis of capital structure
Non-current and current liabilities amounted to €11,210.6 million as at June 30, 2022, which was €528.6 million higher than the figure as at December 31, 2021 of €10,682.0 million. The increase was driven primarily by the rise in financial liabilities and, to a lesser extent, by higher trade payables. It was partly offset, in particular, by a lower defined benefit obligation.
Non-current and current financial liabilities rose to a total of €1,808.6 million (December 31, 2021: €1,050.5 million). Non-current financial liabilities stood at €1,088.5 million (December 31, 2021: €898.7 million). The carrying amount of the corporate bond issued, which is included in this line item, amounted to €496.2 million (December 31, 2021: €495.6 million). In addition to the non-current promissory notes, which had a carrying amount of €321.8 million (December 31, 2021: €326.1 million), non-current financial liabilities mainly comprised liabilities to banks of €239.7 million (December 31, 2021: €46.6 million). The growth of the latter is attributable to new long-term loans of €200.0 million that were arranged in June 2022.
Current financial liabilities rose to €720.1 million as at June 30, 2022 (December 31, 2021: €151.9 million). The increase was mainly due to paper totaling €508.5 million that was issued under the commercial paper program in the first half of the year. In addition, current liabilities to banks increased to €192.4 million (December 31, 2021: €57.4 million), of which €100.0 million is attributable to a new loan arranged in June 2022.
Net financial debt (non-current and current financial liabilities less cash and cash equivalents) rose sharply to €1,429.1 million as at June 30, 2022 (December 31, 2021: €567.6 million). This equated to 0.9 times adjusted EBITDA on an annualized basis (December 31, 2021: 0.3 times). To reconcile the net financial debt with the industrial net operating debt of €2,490.3 million as at June 30, 2022 (December 31, 2021: €1,600.1 million), the liabilities from the short-term rental business of €502.3 million (December 31, 2021: €488.9 million) and the liabilities from procurement leases of €558.9 million (December 31, 2021: €543.6 million) are added to net financial debt.
in € million |
Jun. 30, 2022 |
Dec. 31, 2021 |
Change |
|---|---|---|---|
Promissory notes |
321.8 |
418.5 |
–23.1% |
Bonds |
496.2 |
495.6 |
0.1% |
Liabilities to banks |
432.0 |
104.0 |
> 100% |
Other financial debt |
558.5 |
32.4 |
> 100% |
Financial debt |
1,808.6 |
1,050.5 |
72.2% |
Less cash and cash equivalents |
–379.5 |
–483.0 |
21.4% |
Net financial debt |
1,429.1 |
567.6 |
> 100% |
Liabilities from short-term rental business |
502.3 |
488.9 |
2.7% |
Liabilities from procurement leases |
558.9 |
543.6 |
2.8% |
Industrial net operating debt |
2,490.3 |
1,600.1 |
55.6% |
Non-current and current liabilities from the lease business came to €3,117.8 million as at June 30, 2022 (December 31, 2021: €3,070.8 million). Of this total, €2,930.2 million was attributable to the financing of the direct lease business (December 31, 2021: €2,858.3 million) and €187.6 million to the repurchase obligations resulting from the indirect lease business (December 31, 2021: €212.6 million).
Non-current and current liabilities from the short-term rental business totaled €502.3 million (December 31, 2021: €488.9 million).
Non-current and current other financial liabilities stood at €678.4 million as at June 30, 2022 (December 31, 2021: €652.0 million). This item included liabilities from procurement leases amounting to €558.9 million (December 31, 2021: €543.6 million), for which right-of-use assets were recorded.
Contract liabilities, which mainly relate to prepayments received from customers in connection with the long-term project business in the Supply Chain Solutions segment, edged up to €868.1 million (December 31, 2021: €854.8 million).
The retirement benefit obligation and similar obligations under defined benefit pension plans fell to €858.6 million as at June 30, 2022 (December 31, 2021: €1,265.3 million). This was mainly due to significantly higher discount rates compared with the end of 2021.
Consolidated equity went up by €446.1 million to €5,614.9 million as at June 30, 2022 (December 31, 2021: €5,168.9 million). The net income of €159.8 million earned during the first half of 2022 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 €304.8 million (after deferred taxes) and were recognized in other comprehensive income. The currency translation gains of €179.0 million, also recognized in other comprehensive income, had a positive impact on equity too. KION GROUP AG’s dividend payout reduced equity by €196.7 million. The equity ratio was 33.4 percent as at June 30, 2022 (December 31, 2021: 32.6 percent).