Financial markets
Conditions in the financial markets generally deteriorated from the KION Group’s perspective because of the higher cost of borrowing. The European Central Bank (ECB) progressively raised the interest rate for its deposit facility to 4.0 percent over the course of 2023. The restrictive monetary policy helped to bring down inflation in the eurozone over the course of the year, and eurozone money supply growth turned negative for the first time ever. The banks responded to the increase in financing costs by raising interest rates on loans and tightening lending criteria, which reduced the supply of credit. Meanwhile, demand for credit in the corporate sector stagnated (Bundesbank, November 2023). The US central bank also maintained its tight monetary policy stance (Federal Reserve Bank of St. Louis, January 2024).
The KION Group generated 49.7 percent of its revenue outside the eurozone in 2023 (2022: 53.9 percent). The US dollar, pound sterling, and the Chinese renminbi were the most important foreign currencies, which had also been the case in 2022. On average, the euro appreciated against the US dollar, pound sterling, and the Chinese renminbi in the reporting year. Currency translation effects had a negative impact on the KION Group’s operating performance in 2023, whereas the prior-year figures had been strongly influenced by positive currency effects.