Net assets
The condensed consolidated statement of financial position as at December 31, 2023 showing current and non-current assets and liabilities together with equity is presented below:
in € million |
Dec. 31, 2023 |
in % |
Dec. 31, 2022 |
in % |
Change |
||
|---|---|---|---|---|---|---|---|
Non-current assets |
12,165.1 |
70.0% |
11,412.6 |
68.8% |
6.6% |
||
Current assets1 |
5,223.3 |
30.0% |
5,186.7 |
31.2% |
0.7% |
||
Total assets |
17,388.4 |
100.0% |
16,599.4 |
100.0% |
4.8% |
||
Equity |
5,772.7 |
33.2% |
5,607.8 |
33.8% |
2.9% |
||
Non-current liabilities |
6,642.9 |
38.2% |
6,040.8 |
36.4% |
10.0% |
||
Current liabilities1 |
4,972.8 |
28.6% |
4,950.8 |
29.8% |
0.4% |
||
Total equity and liabilities |
17,388.4 |
100.0% |
16,599.4 |
100.0% |
4.8% |
||
|
|||||||
Non-current assets
Non-current assets increased year on year to €12,165.1 million (December 31, 2022: €11,412.6 million). The carrying amount of intangible assets was €5,665.0 million (December 31, 2022: €5,781.6 million). Of this sum, €3,558.0 million was attributable to goodwill (December 31, 2022: €3,619.4 million). Most of the decrease of €61.4 million in the carrying amount of goodwill was due to exchange rate movements. As a result of ongoing capital expenditure activities, other property, plant and equipment rose sharply to €1,749.9 million (December 31, 2022: €1,585.2 million). In addition to investment in the expansion of existing production and technology facilities, there was capital expenditure on projects such as the construction of a new Supply Chain Solutions plant in Jinan, China, and an automated distribution center in Kahl am Main. Other property, plant and equipment also included right-of-use assets related to procurement leases, which rose to €589.2 million as at the end of 2023 (December 31, 2022: €543.5 million). Of this figure, €470.7 million was attributable to land and buildings (December 31, 2022: €445.7 million) and €118.5 million to plant & machinery and office furniture & equipment (December 31, 2022: €97.9 million).
The rental assets from the short-term rental business recognized in the statement of financial position increased to €737.8 million as at December 31, 2023 (2022: €602.1 million). This was due to the expansion and progressive renewal of the short-term rental fleet in light of the improved availability of new trucks. Leased assets for direct and indirect leases with end customers that are classified as operating leases rose to €1,454.9 million (December 31, 2022: €1,367.7 million). Due to the healthy growth in new business, non-current lease receivables arising from leases with end customers that are classified as finance leases also increased, to €1,701.9 million (December 31, 2022: €1,370.5 million).
The amount of deferred tax assets recognized in the statement of financial position swelled to €443.2 million as at December 31, 2023 (December 31, 2022: €300.8 million).
Current assets
Totaling €5,223.3 million, current assets as at December 31, 2023 were virtually unchanged compared with the end of 2022 (December 31, 2022: €5,186.7 million), primarily thanks to the improved management of working capital compared with the previous year. In the fourth quarter of 2023, the Group was able to reduce the inventories that had built up over the course of the year as a result of high production output in the Industrial Trucks & Services segment. As at the end of 2023, the Group’s inventories totaled €1,817.1 million (2022: €1,804.6 million).
in € million |
Dec. 31, 2023 |
Dec. 31, 2022 |
Change |
|---|---|---|---|
Materials and supplies |
465.8 |
512.2 |
–9.1% |
Work in progress |
318.1 |
340.1 |
–6.5% |
Finished goods and merchandise |
959.6 |
890.3 |
7.8% |
Advances paid |
73.7 |
62.0 |
18.8% |
Total inventories |
1,817.1 |
1,804.6 |
0.7% |
Trade receivables rose to €1,755.8 million as a result of revenue growth (December 31, 2022: €1,667.3 million). Contract assets, which are mainly recognized in connection with the project business in the Supply Chain Solutions segment, fell sharply to €403.3 million due to continuous invoicing over the course of the projects (December 31, 2022: €528.8 million).
At €2,009.0 million, the KION Group’s net working capital as at the end of 2023 was comparable to the level a year earlier (December 31, 2022: €2,050.2 million). Inventories remained more or less stable compared with the end of 2022, while receivables from customers increased but to a lesser extent than the combined impact of lower contract balances in the project business of the Supply Chain Solutions segment and a higher level of trade payables.
Current lease receivables from end customers increased as at December 31, 2023 as a result of the growth in new business.
Thanks to the significant level of positive free cash flow in the reporting period, it was possible to use some of the liquidity generated to progressively bring down the level of financial liabilities. Cash and cash equivalents amounted to €311.8 million as at the end of 2023, which was almost unchanged year on year (December 31, 2022: €318.1 million).
Assets classified as held for sale were recognized in the consolidated statement of financial position in an amount of €55.2 million (2022: €27.4 million). They relate to the pending sales of the Industrial Trucks & Services segment’s business in Russia and two of its sales units, in Norway and Finland. The assets of the disposal groups mainly consist of inventories, leased and rental assets, and cash and cash equivalents.