Basis of presentation

Basis of preparation

The condensed consolidated interim financial statements of KION GROUP AG and its subsidiaries (‘KION’) for the six months ended June 30, 2026 have been prepared in line with International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ and other International Financial Reporting Standards (IFRSs) as adopted by the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council concerning the application of international accounting standards for interim financial statements.

All of the IFRSs and the related interpretations (IFRICs/SICs) of the IFRS Interpretations Committee (IFRS IC) that had been issued by the reporting date and were required to be applied have been applied in preparing these condensed consolidated interim financial statements. The application of financial reporting standards that became mandatory for the first time in 2026 had no material effect on the presentation of KION’s financial position and financial performance.

The International Accounting Standards Board published the standard IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in April 2024. IFRS 18 will replace the existing standard IAS 1 ‘Presentation of Financial Statements’. It contains various new rules, including on the structure of the income statement, on management-defined performance measures, and on the aggregation and disaggregation of information. There are also changes to the disclosure requirements relating to the statement of cash flows. The new rules are aimed at improving the presentation of financial information and increasing the transparency and comparability of financial statements. IFRS 18 was adopted for use in the European Union in February 2026 and is required to be applied for annual periods beginning on or after January 1, 2027. KION is at an advanced stage with its analysis of the impact of initial application of IFRS 18 on the consolidated financial statements. The assessment of the new rules found that KION’s lease business is deemed a specified main business activity (‘providing financing to customers’) under IFRS 18. Consequently, future interest income and interest expense in connection with the lease business will be recognized as part of revenue and cost of sales respectively and therefore will be classified in the operating category of the income statement. Until now, the interest income and interest expense in connection with the lease business have been recognized within net financial income/expenses under IAS 1. The existence of a specified main business activity will also impact on the consolidated statement of cash flows. This particularly affects cash received and paid in connection with the financing of the lease business; these cash flows will have to be recognized in cash flow from financing activities in the future (currently: cash flow from operating activities). Furthermore, KION is currently analyzing the impact of the new rules regarding management-defined performance measures and any changes that may be required to the key figures used for management purposes.

These condensed consolidated interim financial statements do not contain all the information and disclosures required of a set of consolidated annual financial statements and should therefore be read in conjunction with the consolidated financial statements prepared for the year ended December 31, 2025.

The reporting currency is the euro. All amounts are disclosed in millions of euros (€ million) unless stated otherwise. Due to rounding effects, addition of the individual amounts shown may result in minor rounding differences to the totals. The percentages shown are calculated on the basis of the respective amounts, rounded to the nearest thousand euros.

Basis of consolidation

A total of 21 German (December 31, 2025: 21) and 100 foreign (December 31, 2025: 100) subsidiaries were fully consolidated in addition to KION GROUP AG as at June 30, 2026.

In addition, nine associates (December 31, 2025: eight) and three joint ventures (December 31, 2025: three) were consolidated and accounted for using the equity method. With effect from April 22, 2026, 35.3 percent of the shares were acquired in ZIKOO Smart Technology Co., Ltd., Zhangjiagang (Suzhou), China, which is accounted for as an associate using the equity method.

As at June 30, 2026, 53 (December 31, 2025: 51) companies were recognized at amortized cost or at fair value through other comprehensive income.

Accounting policies

These condensed consolidated interim financial statements are based on the interim financial statements of the parent company KION GROUP AG and its consolidated subsidiaries prepared in accordance with the standard accounting policies applicable throughout the Group. The material judgments and estimates in these condensed consolidated interim financial statements are unchanged compared with December 31, 2025. With the exception of the matters described below, the accounting policies are the same as those used in 2025.

From this year, the direct lease business is financed not only by sale-and-leaseback transactions, securitizations, and dedicated bank loans but also by funds from the corporate bond issued in March 2026. However, the liabilities resulting from the corporate bond are recognized under financial liabilities – rather than under liabilities from the lease business – because there is no contractual requirement stipulating that the funds obtained be used to finance the lease business.

The criteria for the allocation of costs to functional areas were revised with effect from January 1, 2026. Consequently, costs for outbound freight and for spare parts distribution warehouses are now recognized within cost of sales. Previously, such costs in the Industrial Trucks & Services segment were recognized within selling expenses. In addition, certain HR management costs in the Intelligent Automation Solutions segment are now allocated in full to administrative expenses, whereas they were previously recognized pro rata within cost of sales. The comparative information for the first six months of 2025 has been restated accordingly, with expenses of €102.9 million reclassified from selling expenses to cost of sales and expenses of €7.1 million reclassified from cost of sales to administrative expenses.