Financial position
The principles and objectives applicable to financial management were the same as those described in the 2018 combined management report. The KION Group has issued guarantees to the banks for all of the payment obligations under the senior facilities agreement (SFA) and the acquisition facilities agreement (AFA) and it is the borrower in respect of all the payment obligations resulting from the promissory note. All covenants were complied with as at 30 September 2019.
Analysis of capital structure
Current and non-current liabilities rose by €719.6 million to €10,383.4 million as at the reporting date (31 December 2018: €9,663.7 million). The larger volume of business led to an increase both in liabilities attributable to financing of the long-term leasing business and in trade payables.
Financial liabilities stood at €2,237.3 million as at 30 September 2019 (31 December 2018: €2,045.2 million). Non-current financial liabilities declined to €1,722.7 million due to partial repayment of the borrowing under the AFA (31 December 2018: €1,818.7 million). The significant increase of €288.1 million in current financial liabilities to €514.6 million (31 December 2018: €226.5 million) was predominantly attributable to the financing of the temporary rise in net working capital. As at 30 September 2019, the unused revolving credit facility under the SFA stood at €900.6 million (31 December 2018: €1,048.2 million). Net financial debt (non-current and current financial liabilities less cash and cash equivalents) thus amounted to €2,093.1 million (31 December 2018: €1,869.9 million). This equated to 1.2 times the annualised adjusted EBITDA. > TABLE 11
in € million |
30/09/2019 |
31/12/2018 |
Change |
|||
Liabilities to banks |
908.2 |
826.4 |
9.9% |
|||
Promissory notes |
1,323.4 |
1,214.3 |
9.0% |
|||
Other financial liabilities to non-banks |
5.7 |
4.6 |
24.0% |
|||
Financial liabilities |
2,237.3 |
2,045.2 |
9.4% |
|||
Less cash and cash equivalents |
–144.3 |
–175.3 |
17.7% |
|||
Net financial debt |
2,093.1 |
1,869.9 |
11.9% |
|||
Liabilities from financial services (short-term rental fleet) |
391.7 |
307.1 |
27.5% |
|||
Other financial liabilities (short-term rental fleet) |
198.9 |
289.9 |
–31.4% |
|||
Liabilities from short-term rental fleet financing |
590.5 |
597.0 |
–1.1% |
|||
Liabilities from procurement leases |
435.6 |
421.2 |
3.4% |
|||
Industrial net operating debt |
3,119.2 |
2,888.1 |
8.0% |
At €1,359.8 million, the retirement benefit obligation was significantly higher than at the end of last year (31 December 2018: €1,043.0 million), primarily owing to much lower discount rates.
The continuing expansion of the long-term leasing business led to an increase in the funding volume during the period under review. This volume totalled €2,299.3 million as at 30 September 2019 (31 December 2018: €1,905.9 million). Of this total, €1,799.0 million (31 December 2018: €1,165.3 million) related to the financing of the long-term direct and indirect leasing business in the form of liabilities from financial services, which also include the residual value obligations arising from the indirect leasing business in an amount of €304.9 million (31 December 2018: €319.5 million). The remaining amount of €500.3 million was attributable to lease liabilities (31 December 2018: €740.6 million).
A sum of €391.7 million, representing some of the financing of the short-term rental fleet, was recognised under liabilities from financial services (31 December 2018: €307.1 million). Overall, liabilities from financial services rose by €718.3 million to €2,190.7 million (31 December 2018: €1,472.4 million).
Current and non-current other financial liabilities totalled €765.8 million (31 December 2018: €813.2 million). In addition to the remaining €198.9 million for the financing of the short-term rental fleet by means of sale and leaseback sub-lease transactions (31 December 2018: €289.9 million), they include liabilities from procurement leases amounting to €435.6 million (31 December 2018: €421.2 million).
The decline in contract liabilities, from €570.1 million as at 31 December 2018 to €381.0 million, mainly related to the progressive fulfilment of customer orders in the long-term project business.
Consolidated equity rose to €3,396.7 million as at 30 September 2019 (31 December 2018: €3,305.1 million). Net income for the period increased equity by €338.9 million. Currency translation effects had a positive impact of €105.0 million. Conversely, equity was reduced by actuarial losses of €198.8 million (after deferred taxes) arising from the measurement of defined benefit obligations due to the far lower level of interest rates and by KION GROUP AG’s dividend payout of €141.5 million. The equity ratio was 24.6 per cent, which was below the figure of 25.5 per cent as at 31 December 2018 owing to the growth in total assets. > TABLE 10
in € million |
30/09/2019 |
in % |
31/12/2018 |
in % |
Change |
|||||
Non-current assets |
10,596.0 |
76.9% |
10,150.6 |
78.3% |
4.4% |
|||||
Current assets |
3,184.1 |
23.1% |
2,818.2 |
21.7% |
13.0% |
|||||
Total assets |
13,780.1 |
– |
12,968.8 |
– |
6.3% |
|||||
Equity |
3,396.7 |
24.6% |
3,305.1 |
25.5% |
2.8% |
|||||
Non-current liabilities |
6,309.8 |
45.8% |
5,999.1 |
46.3% |
5.2% |
|||||
Current liabilities |
4,073.6 |
29.6% |
3,664.6 |
28.3% |
11.2% |
|||||
Total equity and liabilities |
13,780.1 |
– |
12,968.8 |
– |
6.3% |