Selected notes to the consolidated statement of financial position
Goodwill and other intangible assets
As a result of currency effects, goodwill rose by €126.2 million to €3,671.0 million in the first six months of this year (December 31, 2021: €3,544.8 million).
As at June 30, 2022, the carrying amounts for brand names and for technology and development assets stood at €939.8 million and €711.1 million respectively (December 31, 2021: €939.7 million and €680.6 million respectively).
At €550.8 million, sundry other intangible assets were €5.2 million higher than their carrying amount as at December 31, 2021 of €545.7 million and primarily related to customer relationships.
Leased and rental assets
Total impairment losses of €10.1 million were recognized in respect of the leased and rental assets of the Russian subsidiaries in the Industrial Trucks & Services segment in the first half of 2022. This represented most of the value of the assets.
Other property, plant, and equipment
Other property, plant, and equipment totaled €1,504.5 million (December 31, 2021: €1,447.5 million) and included a figure of €518.1 million for right-of-use assets related to procurement leases (December 31, 2021: €513.6 million). Of this figure, €419.2 million was attributable to land and buildings (December 31, 2021: €401.6 million) and €98.8 million to plant & machinery and office furniture & equipment (December 31, 2021: €112.0 million).
Inventories
The reported inventories break down as follows:
in € million |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
Materials and supplies |
573.2 |
442.0 |
Work in progress |
518.6 |
363.2 |
Finished goods and merchandise |
860.7 |
761.6 |
Advances paid |
60.0 |
65.2 |
Total inventories |
2,012.4 |
1,632.1 |
Write-downs of €4.9 million were recognized on inventories in the second quarter of 2022 (Q2 2021: €2.7 million) and of €20.3 million in the first six months of 2022 (H1 2021: €10.5 million). In the first quarter of 2022, write-downs of €7.1 million were recognized on inventories of the Russian subsidiaries in the Industrial Trucks & Services segment. Reversals of write-downs had to be recognized in an amount of €2.4 million in the second quarter of 2022 (Q2 2021: €1.0 million) and in an amount of €5.7 million in the first six months of 2022 (H1 2021: €3.8 million) because the reasons for the write-downs no longer applied.
Trade receivables
Trade receivables break down as follows:
in € million |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
Receivables from third parties |
1,594.4 |
1,347.1 |
Receivables from third parties measured at fair value through profit or loss (FVPL) |
12.6 |
1.5 |
Trade receivables from non-consolidated subsidiaries, equity-accounted investments and other investments |
52.1 |
47.9 |
Valuation allowances for trade receivables |
–68.6 |
–57.3 |
Total trade receivables |
1,590.5 |
1,339.2 |
Equity
As at June 30, 2022, the Company’s share capital amounted to €131.2 million, which was unchanged on December 31, 2021 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, 2022 was 131,102,423 no-par-value shares (December 31, 2021: 131,102,423 no-par-value shares). KION GROUP AG had 96,224 treasury shares as at the reporting date (December 31, 2021: 96,224).
The distribution of a dividend of €1.50 per share (H1 2021: €0.41 per share) to the shareholders of KION GROUP AG resulted in an outflow of funds of €196.7 million in May 2022 (H1 2021: €53.7 million).
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 2021 owing to actuarial gains that resulted from higher discount rates in all key currency areas. The present value of the defined benefit obligation was calculated on the basis of the discount rates shown in the following table.
|
Germany |
UK |
Other |
|||
|---|---|---|---|---|---|---|
|
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Discount rate |
3.35% |
1.20% |
3.70% |
1.80% |
3.90% |
1.97% |
Salary increase rate |
3.05% |
2.75% |
3.18% |
3.58% |
0.73% |
0.66% |
Pension increase rate |
2.35% |
2.00% |
3.60% |
3.70% |
0.08% |
0.07% |
The change in estimates relating to defined benefit pension entitlements resulted in an increase in equity of €304.8 million (after deferred taxes) in the reporting year. Overall, the net obligation under defined benefit pension plans fell to €767.3 million (December 31, 2021: €1,185.6 million). This consisted of €858.6 million recognized under the retirement benefit obligation and similar obligations (December 31, 2021: €1,265.3 million) less an amount of €91.3 million (December 31, 2021: €79.7 million) recognized under other non-current assets.
Financial liabilities
The non-current and current financial liabilities totaling €1,808.6 million (December 31, 2021: €1,050.5 million) included promissory notes amounting to €321.8 million as at June 30, 2022 (December 31, 2021: €418.5 million). As scheduled, the fixed-rate tranche of the promissory note of €92.5 million was repaid in May 2022.
A corporate bond of €496.2 million (December 31, 2021: €495.6 million) and liabilities to banks of €432.0 million (December 31, 2021: €104.0 million) were also included under financial liabilities. The rise in liabilities to banks was due to new bank loans of €300.0 million that were arranged in June. The overall rise in other financial liabilities to €558.5 million (December 31, 2021: €32.4 million) was mainly due to the paper issued under the commercial paper program in the first half of the year totaling €508.5 million (December 31, 2021: €0.0 million).
Liabilities from the lease business
Non-current and current liabilities from the lease business totaled €3,117.8 million (December 31, 2021: €3,070.8 million) and could be broken down into a sum of €2,930.2 million (December 31, 2021: €2,858.3 million) that related to the financing of the direct lease business and a sum of €187.6 million (December 31, 2021: €212.6 million) that related to repurchase obligations resulting from the indirect lease business.
in € million |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
Non-current liabilities from lease business |
2,258.3 |
1,793.5 |
thereof from sale and leaseback sub-lease transactions |
741.4 |
766.0 |
thereof from lease facilities |
456.0 |
5.2 |
thereof from asset-backed securities |
932.5 |
874.0 |
thereof from repurchase obligations (indirect lease business) |
128.5 |
148.4 |
|
|
|
Current liabilities from lease business |
859.4 |
1,277.3 |
thereof from sale and leaseback sub-lease transactions |
335.2 |
342.7 |
thereof from lease facilities |
136.5 |
583.8 |
thereof from asset-backed securities |
328.7 |
286.7 |
thereof from repurchase obligations (indirect lease business) |
59.1 |
64.1 |
Liabilities arising from sale and leaseback sub-lease transactions still included liabilities of €62.9 million (December 31, 2021: €109.8 million) that related to sale and leaseback sub-lease transactions entered into up to December 31, 2017.
The maturity structure of liabilities from lease facilities changed as at June 30, 2022 due to the new revolving credit facility that was arranged.
Liabilities from the short-term rental business
Non-current and current liabilities from the short-term rental business totaled €502.3 million (December 31, 2021: €488.9 million) and related to the financing of industrial trucks for the short-term rental fleet, mainly on the basis of sale and leaseback sub-lease transactions.
This amount still included liabilities of €24.5 million (December 31, 2021: €43.2 million) that related to sale and leaseback sub-lease transactions entered into up to December 31, 2017.
Contract balances
Contract assets rose by €204.7 million to €723.8 million as at June 30, 2022 (December 31, 2021: €519.1 million). They mainly related to work under project business contracts that has not yet been invoiced.
Of the contract liabilities, €665.1 million was attributable to project business contracts with a net debit balance due to customers as at the reporting date (December 31, 2021: €675.0 million) and €202.9 million to prepayments received from customers (December 31, 2021: €179.8 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 €678.4 million (December 31, 2021: €652.0 million) and included a figure of €558.9 million for liabilities from procurement leases (December 31, 2021: €543.6 million).