Net assets
The condensed consolidated statement of financial position as at June 30, 2023 showing non-current and current assets and liabilities together with equity is presented below:
in € million |
Jun. 30, 2023 |
in % |
Dec. 31, 2022 |
in % |
Change |
|---|---|---|---|---|---|
Non-current assets |
11,625.8 |
68.3% |
11,412.6 |
69.0% |
213.1 |
Current assets |
5,394.1 |
31.7% |
5,115.8 |
31.0% |
278.3 |
Total assets |
17,019.8 |
100.0% |
16,528.4 |
100.0% |
491.4 |
Equity |
5,664.3 |
33.3% |
5,607.8 |
33.9% |
56.5 |
Non-current liabilities |
6,003.4 |
35.3% |
6,040.8 |
36.5% |
–37.4 |
Current liabilities |
5,352.2 |
31.4% |
4,879.9 |
29.5% |
472.3 |
Total equity and liabilities |
17,019.8 |
100.0% |
16,528.4 |
100.0% |
491.4 |
Totaling €11,625.8 million as at June 30, 2023, non-current assets were slightly higher than at the end of 2022 (December 31, 2022: €11,412.6 million). The carrying amount of intangible assets was €5,693.0 million (December 31, 2022: €5,781.6 million). Of this sum, €3,573.6 million was attributable to goodwill (December 31, 2022: €3,619.4 million). Mainly exchange-rate movements resulted in a €45.8 million decrease in the carrying amount of goodwill. Other property, plant, and equipment rose slightly to €1,605.3 million (December 31, 2022: €1,585.2 million). This included right-of-use assets related to procurement leases, which were up a little compared with the end of the previous year, standing at €552.6 million as at June 30, 2023 (December 31, 2022: €543.5 million). Of this figure, €453.2 million was attributable to land and buildings (December 31, 2022: €445.7 million) and €99.5 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 were up at €665.4 million as at June 30, 2023 (December 31, 2022: €602.1 million). This was due to the expansion and gradual replacement 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 stood at €1,402.6 million, up slightly compared with €1,367.7 million as at December 31, 2022. In light of the healthy growth in new business, long-term lease receivables arising from leases with end customers that are classified as finance leases increased to €1,485.3 million (December 31, 2022: €1,370.5 million).
Current assets rose to a total of €5,394.1 million as at June 30, 2023 (December 31, 2022: €5,115.8 million). As conditions along the supply chain continued to normalize, the value of work in progress in the Industrial Trucks & Services segment was held more or less steady compared with the end of 2022. The segment continued to maintain buffer inventories of raw materials and bought-in components in order to protect its ability to deliver to customers. Total inventories increased to €1,946.7 million as at June 30, 2023 (December 31, 2022: €1,804.6 million), due in part to higher inventories of finished goods as at the reporting date.
Trade receivables rose to €1,763.7 million (December 31, 2022: €1,596.4 million). Contract assets, which are mainly recognized in connection with the project business in the Supply Chain Solutions segment, fell to €480.1 million due to continuous invoicing over the course of the project (December 31, 2022: €528.8 million).
At €1,992.2 million, the KION Group’s net working capital was slightly above the equivalent figure for the end of 2022 (December 31, 2022: €1,979.3 million). The growth of inventories and trade receivables was partly offset by a marked rise in trade payables.
Current lease receivables from end customers increased to €560.6 million as at June 30, 2023 as a result of new business growth (December 31, 2022: €519.8 million).
The healthy increase in free cash flow in the first half of 2023 meant that some of this liquidity could be used to repay financial liabilities. Cash and cash equivalents decreased to €240.2 million as at June 30, 2023 (December 31, 2022: €318.1 million).