Financial position

The principles and objectives applicable to financial management as at June 30, 2024 were the same as those described in the 2023 combined management report.

Analysis of capital structure

Non-current and current liabilities amounted to €11,930.3 million as at June 30, 2024, which was €314.6 million higher than the figure as at December 31, 2023 (€11,615.7 million).

Non-current financial liabilities decreased to €1,141.3 million as at June 30, 2024 (December 31, 2023: €1,306.6 million). The carrying amount of the corporate bond issued, which is included in this line item, amounted to €498.6 million (December 31, 2023: €498.0 million). Maturity-related reclassifications to current liabilities meant that the carrying amount of non-current promissory notes fell to €447.7 million (December 31, 2023: €626.5 million). Non-current liabilities to banks increased slightly to €177.6 million (December 31, 2023: €164.2 million).

Current financial liabilities rose to a total of €408.8 million as at June 30, 2024 (December 31, 2023: €215.8 million), of which a total of €179.5 million represented two tranches of a promissory note now recognized as current and €104.5 million related to issues under the commercial paper program (December 31, 2023: €20.0 million). The figure was reduced by the repayment, in an amount of €69.5 million, of a promissory note tranche that matured in May 2024. Liabilities to banks fell to €93.7 million (December 31, 2023: €108.2 million).

Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €1,278.6 million as at June 30, 2024 (December 31, 2023: €1,210.6 million). This equated to 0.7 times adjusted EBITDA on an annualized basis (December 31, 2023: 0.7 times). To reconcile the net financial debt with the industrial net operating debt (INOD) of €2,722.3 million as at June 30, 2024 (December 31, 2023: €2,566.2 million), the liabilities from the short-term rental business of €761.2 million (December 31, 2023: €716.6 million) and the liabilities from procurement leases of €682.5 million (December 31, 2023: €639.0 million) are added to net financial debt.

Non-current and current liabilities from the lease business rose to €4,081.7 million as at June 30, 2024 (December 31, 2023: €3,756.2 million). Of this total, €3,956.0 million was attributable to the financing of the direct lease business (December 31, 2023: €3,620.5 million) and €125.7 million to the repurchase obligations resulting from the indirect lease business (December 31, 2023: €135.7 million).

Non-current and current other financial liabilities came to €846.1 million as at June 30, 2024 (December 31, 2023: €884.5 million). This item included liabilities from procurement leases amounting to €682.5 million (December 31, 2023: €639.0 million), for which right-of-use assets were recognized.

Contract liabilities, which mainly relate to prepayments received from customers in connection with the long-term project business in the Supply Chain Solutions segment, stood at €761.1 million as at June 30, 2024 and were thus at a level comparable with the end of the previous year (December 31, 2023: €773.3 million).

The retirement benefit obligation and similar obligations under defined benefit pension plans fell to €734.2 million as at June 30, 2024 (December 31, 2023: €775.7 million) due to a moderate rise in discount rates.

Consolidated equity increased to €5,959.9 million as at June 30, 2024 (December 31, 2023: €5,772.7 million). The net income of €181.7 million earned during the first half of 2024 contributed to the rise in equity, as did the actuarial gains and losses arising from the measurement of pensions, which amounted to a net gain of €33.5 million (after deferred taxes) and were recognized in other comprehensive income. The currency translation gains of €67.3 million, also recognized in other comprehensive income, had a positive impact on equity too. KION GROUP AG’s dividend payout reduced equity by €91.8 million. The equity ratio increased slightly to reach 33.3 percent (December 31, 2023: 33.2 percent).

Analysis of capital expenditure

The KION Group’s capital expenditure on property, plant and equipment and on intangible assets (excluding right-of-use assets from procurement leases) in the period under review gave rise to cash payments of €182.7 million (H1 2023: €162.7 million). The focus in the Industrial Trucks & Services segment was on product development and the expansion and modernization of production and technology facilities. Capital expenditure in the Supply Chain Solutions segment predominantly related to development costs.

Analysis of liquidity

Cash and cash equivalents declined to €271.6 million as at June 30, 2024 (December 31, 2023: €311.8 million).

Taking into account the credit facility of €1,359.8 million that was still freely available (December 31, 2023: €1,364.7 million), the unrestricted cash and cash equivalents available to the KION Group as at June 30, 2024 amounted to €1,629.7 million (December 31, 2023: €1,674.4 million).

Cash flow from operating activities came to €366.7 million in the first half of 2024 (H1 2023: €383.5 million). This figure was boosted by the significantly improved operating profit, whereas the variable remuneration that was paid and the payments for income taxes were much higher than in the prior-year period because of the successful financial year in 2023. In addition, net working capital was only marginally higher than at the end of 2023.

Net cash used for investing activities amounted to minus €164.4 million in the first six months of 2024, which was slightly above the level of the prior-year period (H1 2023: minus €154.7 million). Within this total, cash payments in respect of capital expenditure increased to minus €182.7 million (H1 2023: minus €162.7 million), of which minus €58.4 million was attributable to capitalized development costs (H1 2023: minus €52.2 million). In addition, the sale of subsidiaries and sales outlets (net of cash) generated a net cash inflow of €10.3 million in the reporting period.

Free cash flow – the sum of cash flow from operating activities and investing activities – amounted to €202.2 million in the reporting period (H1 2023: €228.8 million).

Net cash used for financing activities amounted to minus €241.0 million in the first half of 2024 (H1 2023: minus €308.1 million). Additions to and repayments of financial debt mainly related to current additions and repayments under the commercial paper program and the syndicated revolving credit facility (RCF) as well as the repayment of the promissory note tranche that matured in May 2024. Payments made for interest portions and principal portions under procurement leases totaled minus €81.7 million (H1 2023: minus €78.2 million). Current interest payments on financial debt amounted to minus €31.1 million and were therefore on a par with the prior-year level (H1 2023: minus €31.1 million). Payments as a result of other financing activities, which mainly related to the repayment of factoring liabilities, totaled minus €66.9 million (H1 2023: receipts of €2.0 million). The distribution of a dividend to the shareholders of KION GROUP AG resulted in an outflow of funds of minus €91.8 million.