Segment report

The Executive Board divides the KION Group into financial services (FS) activities and the Linde Material Handling (LMH) and STILL brands for management purposes. Segment reporting follows the same breakdown, taking into account the relevant organisational structures and corporate strategy of the KION Group.

The key performance indicator used to manage the brand segments is “adjusted EBIT”. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT)—including KION acquisition items and non-recurring items—to the adjusted EBIT for the segments (“adjusted EBIT”). To improve comparability and control, the non-recurring items for the Linde Material Handling segment in 2012 also include the retrospective elimination of the EBIT items for the hydraulics business, which was sold at the end of 2012.

The key performance indicator used to manage the Financial Services segment is earnings before tax (EBT). Return on equity (ROE) is also an important metric.

The tables 30–33 contain information on the revenue and earnings generated by the KION Group’s operating segments in the second quarter of 2013 and 2012 and in the first six months of 2013 and 2012.

Segment report Q2 2013

>>TABLE 30

in € million

LMH

STILL

Financial Services

Other

Consolidation/
Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

 

 

 

 

 

 

 

Revenue from external customers

676.7

378.5

83.0

11.1

0.0

1,149.3

Intersegment revenue

71.2

54.3

57.7

47.8

-231.0

0.0

Total revenue

747.9

432.8

140.7

58.9

-231.0

1,149.3

Earnings before taxes

76.0

17.3

1.1

-67.8

0.4

27.1

Financial income

1.8

0.4

13.2

0.3

-9.8

5.9

Financial expenses

-4.3

-8.0

-12.2

-55.4

9.6

-70.3

= Net financial expenses

-2.6

-7.6

1.1

-55.1

-0.2

-64.4

EBIT

78.6

24.9

0.0

-12.7

0.7

91.5

+ Non-recurring items

-1.2

2.6

0.0

7.1

0.0

8.5

+ KION acquisition items

6.2

1.5

0.0

0.0

0.0

7.7

= Adjusted EBIT

83.6

28.9

0.0

-5.5

0.7

107.6

Equity result

0.4

0.8

3.5

0.0

0.0

4.6

Capital expenditures1

14.7

8.4

0.0

3.0

0.9

26.9

Depreciation2

21.0

9.1

0.0

4.0

1.1

35.3

Order intake

673.2

386.0

140.7

58.9

-153.9

1,104.8

Segment report Q2 2012

>>TABLE 31

in € million

LMH

STILL

Financial Services

Other

Consolidation/
Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

 

 

 

 

 

 

 

Revenue from external customers

728.0

364.6

63.9

9.6

0.0

1,166.1

Intersegment revenue

54.9

42.9

58.7

49.2

-205.6

0.0

Total revenue

782.9

407.5

122.6

58.8

-205.6

1,166.1

Earnings before taxes

82.6

21.1

1.1

-54.0

-20.1

30.7

Financial income

2.9

0.4

11.5

-10.5

-6.6

-2.3

Financial expenses

-6.8

-7.1

-11.0

-52.4

5.6

-71.7

= Net financial expenses

-3.9

-6.8

0.5

-62.8

-1.0

-74.0

EBIT

86.5

27.9

0.6

8.8

-19.1

104.7

+ Non-recurring items

-15.3

-2.4

0.0

5.6

0.0

-12.1

+ KION acquisition items

7.0

2.0

0.0

0.4

0.0

9.3

= Adjusted EBIT

78.2

27.4

0.6

14.8

-19.1

101.9

Equity result

6.7

0.1

0.0

0.0

0.0

6.9

Capital expenditures1

17.9

12.0

0.0

3.8

0.0

33.7

Depreciation2

25.3

10.6

0.0

4.5

0.0

40.3

Order intake

779.1

399.5

122.6

58.8

-157.4

1,202.6

Segment report Q1—Q2 2013

>>TABLE 32

in € million

LMH

STILL

Financial Services

Other

Consolidation/
Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at 30 June

 

 

 

 

 

 

 

Revenue from external customers

1,323.5

730.3

157.4

23.2

0.0

2,234.4

Intersegment revenue

135.7

112.2

97.6

98.7

-444.2

0.0

Total revenue

1,459.2

842.5

255.0

122.0

-444.2

2,234.4

Earnings before taxes

140.2

29.2

2.3

-105.7

-0.1

65.9

Financial income

4.6

0.9

25.5

18.3

-19.6

29.6

Financial expenses

-10.4

-16.2

-23.4

-110.4

18.7

-141.7

= Net financial expenses

-5.8

-15.3

2.1

-92.1

-0.9

-112.0

EBIT

146.0

44.5

0.2

-13.6

0.8

177.9

+ Non-recurring items

1.2

3.5

0.0

2.5

0.0

7.2

+ KION acquisition items

12.3

2.8

0.0

0.2

0.0

15.3

= Adjusted EBIT

159.4

50.9

0.2

-10.9

0.8

200.4

Segment assets

4,606.8

2,072.6

1,077.2

1,751.5

-2,527.2

6,981.0

Segment liabilities

1,430.0

1,164.9

1,039.3

4,281.0

-2,517.8

5,397.4

Carrying amount of at-equity investments

132.0

6.1

15.8

0.0

0.0

153.9

Equity result

-1.0

0.8

3.5

0.0

0.0

3.3

Capital expenditures1

29.2

15.4

0.0

5.7

1.7

52.0

Depreciation2

42.1

18.5

0.0

8.0

2.3

70.8

Order intake

1,353.7

809.3

255.0

122.0

-289.8

2,250.2

Number of employees3

13,192

7,512

116

713

21,533

Segment report Q1—Q2 2012

>>TABLE 33

in € million

LMH

STILL

Financial Services

Other

Consolidation/
Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at 30 June

 

 

 

 

 

 

 

Revenue from external customers

1,441.5

716.1

132.5

20.4

0.0

2,310.5

Intersegment revenue

114.1

102.0

88.7

97.4

-402.2

0.0

Total revenue

1,555.6

818.1

221.3

117.8

-402.2

2,310.5

Earnings before taxes

157.7

34.7

2.3

-104.7

-19.9

70.1

Financial income

5.9

1.5

22.6

10.7

-14.2

26.5

Financial expenses

-13.3

-13.8

-21.0

-116.1

12.5

-151.8

= Net financial expenses

-7.5

-12.3

1.6

-105.4

-1.8

-125.3

EBIT

165.2

47.0

0.7

0.7

-18.2

195.4

+ Non-recurring items

-31.8

2.0

0.0

8.4

0.0

-21.4

+ KION acquisition items

14.3

3.4

0.0

0.6

0.0

18.3

= Adjusted EBIT

147.7

52.4

0.7

9.7

-18.2

192.3

Segment assets

4,589.1

2,018.0

965.3

513.3

-2,048.3

6,037.4

Segment liabilities

1,561.7

1,110.3

927.2

5,006.7

-2,036.9

6,569.0

Carrying amount of at-equity investments

17.6

4.8

12.7

0.0

0.0

35.0

Equity result

11.6

0.1

0.0

0.0

0.0

11.7

Capital expenditures1

32.3

20.1

0.0

6.4

0.0

58.9

Depreciation2

50.2

21.1

0.0

8.6

0.0

79.9

Order intake

1,548.6

803.7

221.3

117.8

-281.6

2,409.8

Number of employees3

14,254

7,200

106

690

22,250

The non-recurring items mainly comprised consultancy costs, as well as costs incurred in connection with severance payments, social plan costs and costs relating to the relocation of production and closure of production sites. They totalled € 11.6 million in the first half of 2013. In the first six months of 2013, these items also included further income and expenses connected with the sale of our controlling interest (70 per cent) in Linde Hydraulics GmbH & Co. KG, Aschaffenburg, and components of the share of profit (loss) of the remaining 30 per cent of the equity-accounted shares, which amounted to net income of minus € 4.4 million. For reasons of comparability and control, the hydraulic business’s current income of € 19.9 million in the first half of 2012 was also eliminated as a non-recurring item from EBIT in last year’s segment reporting.

The KION acquisition items relate to the acquisition of the KION Group, which was formed at the end of 2006 when it was spun off from Linde AG, Munich. These items comprise net write-downs on the hidden reserves identified as part of the purchase price allocation.

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