Information on financial instruments
The carrying amounts and fair values of financial assets and liabilities in accordance with IFRS 7 are shown in the following table.
|
Jun. 30, 2022 |
Dec. 31, 2021 |
||||
|---|---|---|---|---|---|---|
in € million |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
||
Financial assets |
|
|
|
|
||
Lease receivables1 |
1,801.7 |
1,816.8 |
1,784.0 |
1,790.2 |
||
Trade receivables |
1,590.5 |
1,590.5 |
1,339.2 |
1,339.2 |
||
Other financial assets |
206.5 |
206.5 |
158.9 |
158.9 |
||
thereof financial investments |
44.2 |
44.2 |
43.7 |
43.7 |
||
thereof financial receivables |
28.5 |
28.5 |
27.3 |
27.3 |
||
thereof other financial investments |
28.6 |
28.6 |
27.2 |
27.2 |
||
thereof sundry financial assets |
54.3 |
54.3 |
47.5 |
47.5 |
||
thereof derivative financial instruments |
51.0 |
51.0 |
13.2 |
13.2 |
||
Cash and cash equivalents |
379.5 |
379.5 |
483.0 |
483.0 |
||
|
|
|
|
|
||
Financial liabilities |
|
|
|
|
||
Financial liabilities |
1,808.6 |
1,793.8 |
1,050.5 |
1,089.4 |
||
thereof promissory notes |
321.8 |
323.0 |
418.5 |
424.3 |
||
thereof bonds |
496.2 |
480.2 |
495.6 |
528.7 |
||
thereof liabilities to banks |
432.0 |
432.0 |
104.0 |
104.0 |
||
thereof sundry financial liabilities |
558.5 |
558.5 |
32.4 |
32.4 |
||
Liabilities from lease business |
3,054.9 |
3,056.5 |
2,961.1 |
2,969.1 |
||
Liabilities from lease business1 |
62.9 |
62.9 |
109.8 |
110.0 |
||
Liabilities from short-term rental business |
477.8 |
478.4 |
445.7 |
448.5 |
||
Liabilities from short-term rental business1 |
24.5 |
24.6 |
43.2 |
43.3 |
||
Trade payables |
1,636.5 |
1,636.5 |
1,443.7 |
1,443.7 |
||
Other financial liabilities |
678.4 |
663.3 |
652.0 |
653.3 |
||
thereof liabilities from procurement leases1 |
558.9 |
543.8 |
543.6 |
545.0 |
||
thereof sundry other financial liabilities and liabilities from accrued interest |
89.4 |
89.4 |
91.7 |
91.7 |
||
thereof derivative financial instruments |
30.1 |
30.1 |
16.6 |
16.6 |
||
|
||||||
Fair value measurement
The following tables show the assignment of fair values to the individual levels as defined by IFRS 13 for financial instruments measured at fair value.
|
Fair Value Hierarchy |
|||
|---|---|---|---|---|
in € million |
Level 1 |
Level 2 |
Level 3 |
Jun. 30, 2022 |
Financial assets |
|
|
|
136.4 |
thereof financial investments |
1.4 |
|
42.8 |
44.2 |
thereof other financial investments |
|
28.6 |
|
28.6 |
thereof trade receivables |
|
12.6 |
|
12.6 |
thereof derivative financial instruments |
|
51.0 |
|
51.0 |
|
|
|
|
|
Financial liabilities |
|
|
|
30.1 |
thereof derivative financial instruments |
|
30.1 |
|
30.1 |
|
Fair Value Hierarchy |
|||
|---|---|---|---|---|
in € million |
Level 1 |
Level 2 |
Level 3 |
Dec. 31, 2021 |
Financial assets |
|
|
|
85.7 |
thereof financial investments |
2.2 |
|
41.6 |
43.7 |
thereof other financial investments |
|
27.2 |
|
27.2 |
thereof trade receivables |
|
1.5 |
|
1.5 |
thereof derivative financial instruments |
|
13.2 |
|
13.2 |
|
|
|
|
|
Financial liabilities |
|
|
|
16.6 |
thereof derivative financial instruments |
|
16.6 |
|
16.6 |
Level 1 comprised the financial investment in Balyo SA, for which the fair value was calculated using prices quoted in an active market.
The fair value of other financial investments was determined using prices quoted in an active market and other observable inputs. They were assigned to Level 2.
Trade receivables, which are recognized at fair value through profit or loss, were assigned to Level 2. Their fair value was calculated using the transaction price achievable in an active market. The biggest influence on the transaction price is the default risk of the counterparty.
Derivatives (currency forwards and interest-rate swaps) were also classified as Level 2. Their fair value was determined using appropriate valuation methods on the basis of the observable market information at the reporting date. The default risk for the Group and for the counterparty was taken into account on the basis of gross figures. The fair value of the currency forwards was calculated using the present value method and applying forward rates as at the reporting date. The fair value of interest-rate swaps was calculated as the present value of the future cash flows. Both contractually agreed payments and forward interest rates were used to calculate the cash flows, which were then discounted on the basis of a yield curve that is observable in the market. In order to eliminate default risk to the greatest possible extent, the KION Group only enters into derivatives with investment-grade counterparties.
Level 3 essentially comprised the financial investments in Shanghai Quicktron Intelligent Technology Co., Ltd. and Zhejiang EP Equipment Co., Ltd. The fair value was determined using appropriate valuation methods that drew on observable inputs to the greatest possible extent.
If events or changes in circumstances make it necessary to reclassify financial instruments to a different level, this is done at the end of a reporting period.