Financial position

The principles and objectives applicable to financial management as at 30 June 2019 were the same as those described in the 2018 combined management report. As part of its financial management activities, the KION Group is continually optimising its financial liabilities and, to an increasing extent, the financing of the long-term leasing business.

In April 2019, KION GROUP AG issued a new floating-rate promissory note in a nominal amount of €120.5 million. In return, €20.5 million of the fixed-rate tranche of the promissory note from 2018 was repaid ahead of schedule. The liabilities in connection with the acquisition facilities agreement (AFA) were reduced by a total of €200.0 million in the first half of 2019 as a result of an early repayment of €100.0 million in both the first quarter and second quarter. The outstanding balance of the AFA, which has a floating interest rate and matures in October 2021, thus came to €400.0 million as at 30 June 2019.

The KION Group has issued guarantees to the banks for all of the payment obligations under the senior facilities agreement (SFA) and the AFA and it is the borrower in respect of all the payment obligations resulting from promissory notes. All covenants were complied with as at the end of the first half of 2019.