Net assets
The condensed consolidated statement of financial position as at September 30, 2023 showing non-current and current assets and liabilities together with equity is presented below:
in € million |
Sep. 30, 2023 |
in % |
Dec. 31, 2022 |
in % |
Change |
|---|---|---|---|---|---|
Non-current assets |
11,875.8 |
68.6% |
11,412.6 |
69.0% |
463.2 |
Current assets |
5,436.0 |
31.4% |
5,115.8 |
31.0% |
320.2 |
Total assets |
17,311.8 |
100.0% |
16,528.4 |
100.0% |
783.4 |
Equity |
5,846.1 |
33.8% |
5,607.8 |
33.9% |
238.3 |
Non-current liabilities |
6,105.6 |
35.3% |
6,040.8 |
36.5% |
64.9 |
Current liabilities |
5,360.1 |
31.0% |
4,879.9 |
29.5% |
480.1 |
Total equity and liabilities |
17,311.8 |
100.0% |
16,528.4 |
100.0% |
783.4 |
Totaling €11,875.8 million as at September 30, 2023, non-current assets were up moderately compared with the figure of €11,412.6 million as at December 31, 2022. The carrying amount of intangible assets was €5,757.7 million (December 31, 2022: €5,781.6 million). Of this sum, €3,624.4 million was attributable to goodwill (December 31, 2022: €3,619.4 million). The small increase of €5.0 million in the carrying amount of goodwill compared with the end of 2022 was largely due to exchange-rate movements. Other property, plant and equipment amounted to €1,675.7 million (December 31, 2022: €1,585.2 million). Within this total, right-of-use assets related to procurement leases increased to €580.5 million (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 €109.8 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 rose to €694.0 million as at September 30, 2023 (December 31, 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 stood at €1,423.1 million, which was up slightly on the figure of €1,367.7 million as at December 31, 2022. In light of the healthy growth in new business, non-current lease receivables arising from leases with end customers that are classified as finance leases increased to €1,551.4 million (December 31, 2022: €1,370.5 million).
Current assets rose to a total of €5,436.0 million as at September 30, 2023 (December 31, 2022: €5,115.8 million). This growth was predominantly driven by the overall increase in inventories to €1,991.9 million (December 31, 2022: €1,804.6 million), which was primarily due to higher production output, which in turn resulted in a higher volume of finished goods and work in progress. Moreover, trade receivables swelled to €1,755.4 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 €464.0 million due to continuous invoicing over the course of the project (December 31, 2022: €528.8 million).
At €2,132.2 million, the KION Group’s net working capital as at September 30, 2023 was higher than at the end of 2022 (December 31, 2022: €1,979.3 million). The increase in inventories and trade receivables was only partly offset by the rise in trade payables and by lower contract balances in the project business of the Supply Chain Solutions segment.
Current lease receivables from end customers increased to €581.5 million as at September 30, 2023 as a result of new business growth (December 31, 2022: €519.8 million).
As free cash flow was comfortably into positive territory in the reporting period, some of this liquidity could be used to repay financial liabilities. Cash and cash equivalents decreased to €298.8 million as at September 30, 2023 (December 31, 2022: €318.1 million).