Robot Book of Kuka
Robot Book of Kuka
Robot Book of Kuka
Interim Report
KUKA Aktiengesellschaft | Interim Report H1 /19
Key figures
H1 /18 H1 /19 Change
in € millions in %
Orders received 1,860.4 1,809.2 −2.8%
Order backlog (June 30) 2,341.1 2,293.1 −2.1%
Sales revenues 1,597.2 1,539.6 −3.6%
Gross earnings from sales 385.4 356.1 −7.6%
in % of sales revenues 24.1% 23.1% –
Earnings before interest and taxes (EBIT) 67.4 45.9 −31.9%
in % of sales revenues 4.2% 3.0% –
One-off effects 1 12.0 – −100.0%
Adjusted EBIT 79.4 45.9 −42.2%
Adjusted EBIT in % of sales revenues 5.0% 3.0% –
Earnings before interest, taxes, depreciation and amortization (EBITDA) 109.4 106.5 −2.7%
in % of sales revenues 6.8% 6.9% –
One-off effects 1 12.0 – −100.0%
Adjusted EBITDA 121.4 106.5 −12.3%
Adjusted EBITDA in % of sales revenues 7.6% 6.9% –
Earnings after taxes 50.3 35.1 −30.2%
Diluted /undiluted earnings per share in € 1.26 0.86 −31.7%
Capital expenditure 127.7 78.8 −38.3%
Equity ratio in % (June 30) 32.4% 38.2% –
Net liquidity (June 30) −181.0 34.4 >100%
Employees (June 30) 14,013 14,126 0.8%
2
Contents
Foreword4
KUKA and the capital market 5
Consolidated management report 6
Interim Report 14
Notes on the consolidated financial statements 20
Responsibility statement 25
Financial calendar 2019 27
Contact and imprint 27
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KUKA Aktiengesellschaft | Interim Report H1 /19
Foreword
Dear Shareholders,
We look back on an eventful first six months, in which KUKA focused On the topic of innovative strength: in July we invited our partners and
very strongly on adapting to the tougher economic environment. For customers to visit us at Augsburg for the KUKA iimotion_days. This gave
May, the VDMA reported a 7% decrease in order volume compared with us an opportunity to present our entire range of products and services
the previous month. This was the sixth consecutive decline in orders. at the Augsburg site for the first time: from the new KR QUANTEC and
The VDMA lowered its forecast for the full year from +1% to −2%. In ItemPiQ, a joint development by KUKA and Swisslog, to the smart fac-
China too, the world’s largest robotics market, the number of industrial tory, we provided our partners and customers with an ideal setting for
robots sold was down 10.1% on the prior-year period according to the conversations and discussions in the form of themed tours of our plant
National Bureau of Statistics of China. KUKA Group generated orders and exciting presentations.
received worth €1,809.2 million in the first half-year 2019, which was
just 2.8% below the previous year’s figure (H1 /18: €1,860.4 million). Feedback from our customers was very positive and motivating. They
Sales revenues amounted to €1,539.6 million in the first half-year 2019, described us as down-to-earth and approachable – with many topics
corresponding to a slight decrease of 3.6% on the previous year (H1 /18: focusing on exactly the right key aspects. Praise that I gladly pass on
€1,597.2 million). The EBIT margin was down from 4.2% in the first to the KUKA employees. Because an event like this with around 400
half-year 2018 to 3.0% in 2019. The result in the prior-year quarter was guests on the company premises can only be staged through efficient
positively influenced by the sale of shareholdings in companies. On the interdepartmental collaboration.
other hand, the efficiency measures initiated since the beginning of
the year have had a positive impact on the development. It thus proved Sincerely,
possible to further improve the Group results. If the other income in
the first six months of 2018 is adjusted for the results of divesting
associated companies and that of the six month of 2019 is adjusted
for the effects of changing the consolidation method, then the EBIT Peter Mohnen
was at the same level.
The weakened economy, the trade dispute between the USA and China,
and Brexit are unsettling our environment. Our customers are becoming
more cautious in their investment activities. We countered these devel-
opments with a comprehensive package of measures. For example, we
kicked off new products such as delta and SCARA robots for the Asian
market, set the course for a stronger focus on R&D and implemented
a customer-oriented organizational structure. At the same time, we
introduced efficiency measures, which also provide for a cutback of
350 jobs at the Augsburg site.
4
KUKA and the capital market
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120
110
100
90
Jan Feb Mar Apr May Jun
KUKA MDAX SDAX 1 Dezember 30, 2018 = 100, share price performance indexed, prices: Xetra
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KUKA Aktiengesellschaft | Interim Report H1 /19
According to the German Mechanical Engineering Industry Association From a cumulative perspective, KUKA Group generated orders received
(VDMA), new orders in the mechanical engineering sector remain under worth €1,809.2 million in the first half-year 2019, which represented
pressure. In May 2019, the order volume fell by 7% in real terms com- a slight decrease of 2.8% on the previous year’s figure (H1 /18:
pared to the previous month. This was the sixth consecutive decline in €1,860.4 million). Sales revenues amounted to €1,539.6 million in
orders. The VDMA lowered its overall forecast for the year from +1% the first half-year 2019, corresponding to a slight decline of 3.6%
to −2%. This was primarily due to the global economic slowdown as year-on-year (H1 /18: €1,597.2 million). The book-to-bill ratio stood at
well as the worldwide trade disputes, which caused uncertainty and 1.18 in the first half-year 2019. This ratio was 0.02 up on the previous
dampened the investment mood. Customers of mechanical engineering year (H1 /18: 1.16). The order backlog decreased slightly by 2.1%
companies are postponing their investments or provisionally freezing from €2,341.1 million as at June 30, 2018 to €2,293.1 million as at
planned investments. Automotive manufacturers will still need to invest June 30, 2019. KUKA Group’s earnings before interest and taxes (EBIT)
in future technologies, but they will come under increasing pressure due dropped to €45.9 million from €67.4 million in the previous year. The
to the weak development of sales. EBIT margin was down from 4.2% in the first half-year 2018 to 3.0%
in 2019. If the one-off income from the sale of associated companies
The International Federation of Robotics (IFR) reports that the global in the 2018 financial year and the one-off income from the change of
robot market grew by 1% in 2018. The original forecast was much higher consolidation method in the 2019 financial year are eliminated, EBIT
at 10%, but global political and economic uncertainties had a negative remained at the same level.
impact on demand. For example, the market for articulated robots, in
particular, saw a decline of 1%. In China alone, demand for articulated
robots even dropped by 12%. According to the National Bureau of Systems
Statistics of China, the number of industrial robots sold in China in the
first half-year 2019 fell 10.1% year-on-year. Despite this sharp drop, the The Systems business segment improved its volume of orders received
global potential for automation solutions remains high in the long term. from €165.0 million in the second quarter of 2018 to €222.2 million
In line with this, the IFR forecasts an average annual global growth rate in the second quarter of 2019. This corresponds to a strong increase
of 14% between 2019 and 2021. A total of around 3.8 million robots of 34.7%. Orders were booked mainly in the Americas region. Sales
are expected to be in use by 2021. revenues rose from €205.1 million in the second quarter of 2018 to
€238.9 million in the second quarter of 2019, a gain of 16.5%. They
were positively impacted by the slight increase in business volume and
the ramp-up of production at KUKA Toledo Production Operations LLC
6
Consolidated financial report
(KTPO), Toledo, USA. The Jeep Gladiator has been in production at KTPO consolidation method. The book-to-bill ratio increased strongly to 1.97
since April 2019. The book-to-bill ratio improved year-on-year from 0.80 (Q2 /18: 1.12) on account of the growth of orders received, signaling
(Q2 /18) to 0.93 (Q2 /19). EBIT decreased slightly to €12.6 million in the growth. EBIT improved to €2.6 million in the second quarter of 2019,
second quarter of 2019, compared with €15.7 million in the prior-year after €1.9 million in the second quarter of 2018. The EBIT margin thus
quarter. The EBIT margin of 5.3% was below the previous year’s figure of rose to 1.8% in Q2 /19 after 1.2% in Q2 /18.
7.7%. This nevertheless represented a significant improvement on the
EBIT margin of 1.4% in Q1 /19. The improvement is partly attributable On a cumulative basis, the Logistics Automation business segment
to the efficiency measures that have helped to stabilize the segment. reported orders received valued at €473.3 million in the first half-year
2019 – a substantial gain of 44.1% (H1 /18: €328.5 million). Sales
Orders received in the first half-year 2019 amounted to €425.6 million revenues in the first half of 2019 amounted to €284.6 million and
after €489.0 million in the first half-year 2018. Together with the lower were thus close to the previous year’s level (H1 /18: €296.3 million).
volume of orders received in the first quarter of 2019, this constituted The book-to-bill ratio increased from 1.11 last year to 1.66. The order
an overall decline of 13.0%. Sales revenues in the first half of the year backlog amounted to €701.7 million as at June 30, 2019, representing
totaled €455.8 million and almost matched the previous year’s result year-on-year growth of 21.5% (June 30, 2018: €577.6 million). EBIT
(H1 /18: €455.7 million). The book-to-bill ratio dropped from 1.07 in in the first half-year 2019 totaled €3.5 million with an EBIT margin of
H1 /18 to 0.93 in H1 /19. At €684.6 million, the order backlog as at 1.2% (H1 /18: EBIT €4.2 million; EBIT margin 1.4%).
June 30, 2019 was also close to the previous year’s level (June 30, 2018:
€702.5 million). EBIT in H1 /19 amounted to €15.7 million, after
€35.3 million in H1 /18. This corresponds to an EBIT margin of 3.4% Healthcare
and 7.7% respectively. The decline is primarily attributable to the poorer
results from the first quarter of 2019. Here, the difficult market envi- At €55.9 million, orders received at Healthcare in Q2 /19 surpassed
ronment intensified the pressure on margins. the prior-year figure of €54.2 million by 3.1%. The sales revenues of
€54.8 million achieved in the reporting period were just above the pre-
vious year’s level (Q2 /18: €54.1 million). The book-to-bill ratio improved
Robotics accordingly from 1.00 in Q2 /18 to 1.02 in the second quarter of 2019.
By contrast, EBIT dropped significantly by 122.2% to −€0.2 million,
In the second quarter of 2019, the Robotics segment generated orders down from €0.9 million in the same period last year. This corresponds to
received worth €279.6 million, 11.0% down on the previous year an EBIT margin of −0.4% (Q2 /18: 1.7%). These results were impacted
(Q2 /18: €314.2 million). Revenues decreased slightly by 4.3% from above all by the higher expenditure for R&D and in sales. Healthcare
€300.8 million in Q2 /18 to €287.9 million in Q2 /19. By contrast, it aims to address a broader customer base with a larger, enhanced product
has proved possible to increase revenues further since the beginning of portfolio and is currently investing in future growth. KUKA anticipates
the year (Q1 /19: €274.4 million). The book-to-bill ratio stood at 0.97 an improvement in the second half-year and positive EBIT for the full
(Q2 /18: 1.04). The difficult situation in the global economy at present year 2019.
has led customers to hold back on placing orders. EBIT amounted to
€20.8 million, showing a substantial year-on-year decline of 65.2% In the first half of 2019, Healthcare generated orders received
(Q2 /18: €59.7 million). The prior-year result was positively impacted worth €105.9 million, virtually matching the previous year’s level of
by the sale of associated companies. The EBIT margin fell accordingly €107.8 million. Revenues increased slightly from €104.4 million in
from 19.8% in Q2 /18 to 7.2% in Q2 /19. A further improvement of H1 /18 to €105.7 million in H1 /19. The resulting book-to-bill ratio stood
the result was achieved in comparison with the first quarter of 2019 at exactly 1.00 after 1.03 in the first half-year 2018. The order backlog
(Q1 /19: 5.3%). of €206.5 million as at June 30, 2019 was down slightly year-on-year
(June 30, 2018: €211.4 million). EBIT fell to €0.0 million in the first
Orders received in the first half-year 2019 had a value of €606.9 million, half-year 2019 (H1 /18: €1.2 million), corresponding to an EBIT margin
corresponding to a 9.0% decrease on the same period of the previous of 0.0% (H1 /18: 1.1%) and attributable to the increased expenditure
year (H1 /18: €666.9 million). Sales revenues, on the other hand, in the areas of R&D and sales.
increased slightly by 0.8% from €557.8 million in the first half of 2018
to €562.3 million in the first half of 2019. At 1.08, the book-to-bill ratio
remained above 1 (H1 /18: 1.20). The order backlog of €438.0 million China
as at June 30, 2019 was down 22.8% year-on-year (June 30, 2018:
€567.6 million). EBIT in the first half-year amounted to €35.4 million, In the second quarter of 2019, the China segment posted orders received
corresponding to an EBIT margin of 6.3%. In the same period last year, amounting to €139.2 million. This is equivalent to a substantial decline
the Robotics business segment earned €68.2 million with an EBIT mar- of 50.3% on the previous year’s value (Q2 /18: €279.9 million). This
gin of 12.2%. Earnings in the prior-year period were positively affected decrease is mainly attributable to the uncertainties in the global econ-
above all by the sale of associated companies. omy, which have made customers reluctant to place orders. Furthermore,
larger orders were acquired mainly in the second quarter in the previous
year. Sales revenues grew slightly by 1.9% to €133.5 million. In the
Logistics Automation previous year, revenues stood at €131.0 million. The book-to-bill ratio fell
from 2.14 in the second quarter of 2018 to 1.04 in the second quarter
Logistics Automation posted a strong rise in orders received by 62.6% to of 2019. EBIT amounted to −€0.9 million in the past quarter (Q2 /18:
€280.4 million in the second quarter of 2019 (Q2 /18: €172.5 million). −€5.3 million). This corresponds to an EBIT margin of −0.7% (Q2 /18:
This sharp increase is mainly due to a large-scale order in the current −4.0%). Here, the difficult economic environment had an impact on
quarter. Revenues decreased slightly by 7.2% from €153.6 million in the level of margins.
Q2 /18 to €142.6 million in Q2 /19. It must be noted here that since
2019 the Chinese company has now been included proportionately in
the result and no longer in the revenues on account of the change of
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KUKA Aktiengesellschaft | Interim Report H1 /19
Altogether, orders received in the China segment totaled €312.0 million Financial position and performance
in the first half-year 2019 and thus fell 12.8% short of the previous
year’s figure (H1 /18: €357.9 million). At €227.7 million, sales revenues
in the first half of 2019 were at a similar level to the previous year Earnings
(H1 /18: €234.3 million). The book-to-bill ratio of 1.37 remained at
a constantly high level (H1 /18: 1.53). The order backlog dropped by In the first half-year 2019, KUKA Group recorded sales revenues
21.2% from €416.1 million as at June 30, 2018 to €327.9 million as at totaling €1,539.6 million, representing a decline of €57.6 million on
June 30, 2019. EBIT grew from −€6.7 million to €4.2 million in the first the previous year (H1 /18: €1,597.2 million). Orders received in the
half-year 2019. The EBIT margin stood accordingly at 1.8% as opposed reporting period fell by 2.8% from €1,860.4 million in the first half of
to −2.9% in the first half-year 2018. This increase is attributable to the 2018 to €1,809.2 million in the first half of 2019. The order backlog
positive effects of the change of consolidation method in the first quar- as at June 30, 2019, stands at €2,293.1 million and is thus virtually
ter of 2019. One Chinese subsidiary was deconsolidated and conversely unchanged year-on-year (June 30, 2018: €2,341.1 million). The gross
a 50% at-equity investment was recognized. earnings from sales amounted to €356.1 million and were therefore
down €29.3 million or 7.6% on the previous year’s figure (H1 /18:
€385.4 million). In the first half-year 2019, the Group’s gross margin was
Orders received
thus 23.1% (H1 /18: 24.1%). This nevertheless represented an improve-
in € millions
ment on the first quarter of 2019. The volume of orders received, grew
from €895.2 million in Q1 /19 to €914.0 million in Q2 /19. The order
425.6 606.9 473.3 105.9 312.0
backlog too increased by almost €100 million on the previous quarter
H1 /19 1,809.2 1
(Q2 /19: €2,293.1 million; Q1 /19: €2,197.6 million). Sales revenues
489.0 666.9 328.5 107.8 357.9 amounted to €801.9 million (Q1 /19: €737.7 million), resulting in gross
H1 /18 1,860.4 1
earnings of €188.7 million (Q1 /19: €167.5 million). This corresponds
to a gross margin for the Group of 23.5% (Q1 /19: 22.7%).
Systems Robotics Logistics Automation
Healthcare China The costs of sales, research & development and administration were
1 Group down year-on-year to €321.6 million (H1 /18: €346.0 million). This rep-
resents a drop of €24.4 million, corresponding to 7.1%. The total costs
of the three function types in relation to sales fell from 21.7% to 21.0%.
Sales costs fell by €16.2 million while administrative costs were down
Sales revenues €19.1 million, this being attributable to successful implementation of
in € millions the efficiency program. As planned, €10.9 million more was spent on
research and development costs.
455.8 562.3 284.6 105.7 227.7
H1 /19 1,539.6 1 The number of employees rose to 14,126 as at June 30, 2019
455.7 557.8 296.3 104.4 234.3 (June 30, 2018: 14,013 employees). The headcount in the area of
H1 /18 1,597.2 1 research & development increased by 218, while the number of sales
employees fell by 148, especially within the framework of the efficiency
Systems Robotics Logistics Automation program. Capacities have also been reduced at the Augsburg site. In
Healthcare China addition, the workforce was increased in China and also, with the start
1 Group of the finance lease model, at KUKA Toledo Production Operations LLC,
Toledo /USA.
In the first half-year 2019, costs of €13.1 million for new product devel-
EBIT opments were capitalized (H1 /18: €18.3 million). These new develop-
in € millions ments will be recognized as expenditure through scheduled amortization
in subsequent periods. Amortization included in research & development
15.7 35.4 3.5 4.2
costs totaled €8.8 million (H1 /18: €7.7 million). This results in a capi-
H1 /19 45.9 1 talization ratio of 15.3% in the first half-year 2019 (H1 /18: 22.6%). In
early April, for example, the new generation of the proven KR QUANTEC
–6.7 35.3 68.2 4.2 1.2
H1 /18 67.4 1
robot was successfully launched on the market. Additionally, KUKA Group
is continuously improving its products and focusing on key technologies.
Systems Robotics Logistics Automation The other operating income mainly includes income from the change of
Healthcare China
consolidation method associated with the deconsolidation of a Chinese
1 Group
subsidiary. In the previous year, this item contained income from the
sale of associated companies.
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Consolidated financial report
Segment reporting and increase patient satisfaction. Due to process optimizations in the
field of medication management during and after in-patient treatment,
The improved organizational structure – KUKA Business Organization hospital staff have more time for patient care, enhancing patient satis-
(KBO) – introduced on January 1, 2019, comprises five business faction. At the same time, the use of automation solutions from Swisslog
segments: Systems, Robotics, Logistics Automation, Healthcare and Healthcare demonstrably reduces the incidence of medication errors.
China. The former centralized structure was loosened and the individ- The newly established joint venture with Midea in the Healthcare sector
ual segments have been given greater responsibility. Consequently, the is intended to expand and optimally exploit further mutual synergies
holding structure has also been streamlined. Swisslog has been split into on the Chinese market. Sales revenues rose slightly to €105.7 million
Logistics Automation and Healthcare in accordance with their range of (H1 /18: €104.4 million). EBIT, on the other hand, declined by €1.2 mil-
products and services and their industry expertise. lion year-on-year to €0.0 million (H1 /18: €1.2 million). This results in
an EBIT margin of 0.0% (H1 /18: 1.1%).
The core expertise of the Systems business segment lies in customized,
flexible solutions for the automation of manufacturing processes and The China segment concentrates on the Chinese growth market. In China,
production logistics. The focus is on system projects, particularly for KUKA produces and markets industrial robots, supplies automation solu-
the automotive industry. These include body-in-white production, the tions, automated warehouse management systems and health systems.
assembly and testing of internal combustion engines and transmissions, The production facility in Shunde is completed and the production of
and also future-oriented business areas, such as electromobility with the robot models has already commenced. Furthermore, research & develop-
assembly and testing of electric motors, battery modules and other com- ment activities for new robot models, such as SCARA robots, are planned.
ponents of the electric powertrain. The know-how lies in the bundling The China business segment generated sales revenues of €227.7 million
of process knowledge, experience and expertise in engineering, project (H1 /18: €234.3 million). EBIT rose from −€6.7 million in H1 /18 to
management, commissioning and service for the automated produc- €4.2 million in H1 /19. This signifies an EBIT margin of 1.8% in the first
tion of vehicles. Sales revenues in the first half of 2019 amounted to half of 2019 after −2.9% in the first half of 2018. Within the China
€455.8 million and were thus virtually unchanged on the same period of segment, the effect of deconsolidation and the simultaneous recognition
the previous year (H1 /18: €455.7 million). EBIT fell from €35.3 million of the at-equity investment at fair value is reported under other operating
in H1 /18 to €15.7 million in H1 /19. This resulted in the EBIT margin income. Since this is a one-off non-operating transaction in the China
decreasing from 7.7% to 3.4%. The decline is primarily attributable segment, it is also only reported there.
to the poorer results from the first quarter of 2019. Here, the difficult
market environment intensified the pressure on margins.
Group income statement
The Robotics segment develops, manufactures and distributes the core
component for automation – the robot. In addition to the manufacture EBITDA (earnings before interest, taxes, depreciation and amortization)
of robots, the focus is also on the robot controller, cells and software for totaled €106.5 million in the first half-year 2019. This virtually corre-
digitalization in automation. Robotics additionally offers its customers sponds to the previous year’s figure of €109.4 million. Depreciations
a wide range of services. In Robotics, sales revenues rose slightly from of €60.6 million (H1 /18: €42.0 million) were recorded, of which
€557.8 million in the first half of 2018 to €562.3 million in the first half €16.2 million (H1 /18: €0.0 million) were attributable to leasing
of 2019. EBIT fell from €68.2 million in H1 /18 to €35.4 million in H1 /19, arrangements in accordance with IFRS 16.
corresponding to an EBIT margin of 6.3% (H1 /18: 12.2%). The prior-year
result was positively impacted by the sale of associated companies. The financial result totaled €2.3 million in the first half of 2019. This
represents a significant increase on the same period of the previous
The Logistics Automation business segment supplies automated, robotic year, which showed expenditure of €4.2 million.
and data-driven intralogistics systems, covering the spectrum from
planning to implementation and service. The integrated automation Interest income of €12.6 million (H1 /18: €2.8 million) was considerably
solutions are implemented for forward-looking warehouses and dis- higher year-on-year and consisted primarily of interest income from
tribution centers. The focus is on the growth markets of e-commerce / lessor relationships and interest income on bank balances in connection
retail and consumer goods. The revenues generated decreased from with the joint venture in the Robotics segment founded in the third
€296.3 million in the first half of 2018 to €284.6 million in the first quarter of 2018. Interest expenses amounted to €10.3 million in the
half of 2019. The EBIT margin fell from 1.4% to 1.2%, corresponding first half-year 2019 after €7.0 million in the first half-year 2018. The
to an EBIT of €3.5 million in H1 /19 (H1 /18: €4.2 million). It must be main increase results from recognition of the interest expenses of
noted here that since 2019 the Chinese company has now been included €2.6 million in connection with the introduction of IFRS 16 (Leases).
proportionately in the result and no longer in the revenues on account The net currency effect in the first half of 2019 totaled €0.1 million
of the change of consolidation method. after −€0.6 million in H1 /18. As in the previous year, the net interest
expense for pensions stood at €0.7 million.
Swisslog Healthcare provides solutions for medication management
in forward-looking hospitals in order to increase their efficiency in a Earnings before taxes (EBT) in the first half of 2019 totaled €48.2 mil-
sustained manner and improve healthcare. The aim is to boost efficiency lion, representing a decline of €15.0 million (H1 /18: €63.2 million). Tax
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KUKA Aktiengesellschaft | Interim Report H1 /19
expenses in the reporting period amounted to €13.1 million (H1 /18: Intangible asset investments totaled €17.7 million (H1 /18: €28.5 mil-
€12.9 million) and resulted in a tax ratio of 27.2% (H1 /18: 20.4%). lion), of which €13.1 million (H1 /18: €18.3 million) was for internally
The exceptionally low tax ratio of the previous year was attributable to generated intangible assets. The cash flow from investment activities
tax-free sales revenues and to low tax rates in the USA. The tax ratio in totaled −€72.2 million (H1 /18: −€104.3 million) and, in addition to the
the first half-year 2019 is largely as expected. payment for acquisition of the remaining shares in Device Insight GmbH,
Munich, also includes the earn-out payments for Utica Enterprises,
Earnings after taxes totaled €35.1 million, down 30.2% on the previous Shelby Township, Michigan /USA, and Visual Components Oy, Espoo /
year’s figure (H1 /18: €50.3 million). Undiluted earnings per share thus Finland.
declined from €1.26 to €0.86.
The cash inflow from Midea Group for the investment in the Chinese
company in the Healthcare business segment is reported under pay-
in € millions H1 /18 H1 /19 ments from capital expenditures on financial investments.
Sales revenues 1,597.2 1,539.6
The cash flow from operating activities plus cash flow from invest-
EBIT 67.4 45.9
ment activities resulted in a free cash flow of −€22.4 million (H1 /18:
EBITDA 109.4 106.5 −€199.8 million).
Financial result −4.2 2.3
Taxes on income −12.9 −13.1 The cash flow from financing activities was down from €113.7 million
in H1 /18 to €52.7 million in H1 /19. This includes dividends to share-
Earnings after taxes 50.3 35.1
holders of €0.30 per share (2018: €0.50 per share), making a total of
€11.9 million (H1 /18: €19.9 million), and borrowing of €88.0 million
in the context of the syndicated loan agreement. The subordinated loan
Financial position that existed in the previous year was not utilized. In this connection,
KUKA Group had agreed with an affiliate of Midea Group on a financing
Cash earnings are an indicator derived from the earnings after taxes, framework of €150.0 million with a term of 5 years. As at June 30, 2018,
adjusted for income taxes, net interest, cash-neutral depreciation on KUKA Group had borrowed €85.0 million, which it paid back in the
tangible and intangible assets, together with other non-cash expenses further course of the 2018 financial year.
and income. Cash earnings in the first half-year 2019 stood at €96.7 mil-
lion, corresponding to a fall of 13.7% on the previous year (H1 /18: The cash flow from financing activities also includes the interest and
€112.1 million). The main reasons for the decline are the lower earnings repayment portions of lease payments under the new IFRS 16 Leases
after taxes and the increase in other income. standard (H1 /19: €18.3 million; H1 /18: €0.0 million).
Cash flow from operating activities rose from −€95.5 million in the first As at June 30, 2019, KUKA Group had cash and cash equivalents of
half of 2018 to €49.8 million in H1 /19. On the one hand, inventories, €508.6 million at its disposal (H1 /18: €139.5 million). The increase in
trade receivables and contract assets increased, while on the other hand cash and cash equivalents compared to the first half-year 2018 is related
there was also a rise in trade payables and contract liabilities. Trade to the subsidiary with additional cash assets that was contributed by
working capital increased by €33.7 million since the start of the financial Midea Group to the joint venture in the third quarter of 2018. Cash and
year from €566.3 million to €600.0 million. The growth of trade working cash equivalents increased by €30.0 million in the first six months of
capital compared with the previous year – where trade working capital 2019 (January 1, 2019: €478.6 million), which is partly due to the cash
rose by €135.4 million from €450.4 million as at January 1, 2018 to inflow from Midea Group for the investment in a Chinese subsidiary in
€585.8 million as at June 30, 2018 – had a positive effect on cash flow the Healthcare business segment.
from operating activities.
EUR 250 million promissory note loan
The following overview shows the development of trade working capital: KUKA AG issued unsecured promissory note loans with a total volume
of €250.0 million on October 9, 2015. After deducting the transaction
June 30, Develop- June 30, Develop-
2018 ment since 2019 ment since
costs, KUKA received a total of €248.9 million from this issue.
Jan. 1, Jan. 1,
in € millions 2018 2019 The total volume was placed in two separate tranches. Tranche 1 has
Inventories 478.7 +91.3 491.2 +24.4 a volume of €142.5 million with a term until October 2020; tranche 2
Trade receivables and
has a volume of €107.5 million and a term until October 2022. Interest
receivables from contract payments are made at yearly intervals on October 9. Interest of €1.7 mil-
assets 956.2 +35.9 1,054.4 +145.4 lion (H1 /18: €2.4 million) was deferred as at the balance sheet date.
Trade payables and
contract liabilities 849.1 −8.2 945.6 +136.1 USD 150 million promissory note loan
Trade working capital 585.8 +135.4 600.0 +33.7 In order to finance the construction of a new manufacturing facility
under the terms of a pay-on-production contract of KUKA Toledo Pro-
duction Operations LLC. (KTPO), Toledo, Ohio /USA, this company issued
In the first half-year 2019, investments of €78.8 million were made promissory note loans with a total volume of USD 150.0 million in 2018
(H1 /18: €127.7 million). €61.1 million (H1 /18: €99.2 million) was in several maturity tranches, underwritten by KUKA AG: tranche 1 has
invested in property, plant and equipment. These investments relate a volume of USD 10 million with a term until August 2020, tranche 2
primarily to buildings, technical equipment, and factory and office has a volume of USD 90 million with a term until February 2022, and
equipment, in particular for the final completion of the production tranche 3 has a volume of USD 50 million with a term until August 2023.
facility at KUKA Toledo Production Operations LLC, Toledo /USA, as The financing was received on August 10 /September 10, 2018.
well as the production shop and training center at the Augsburg site.
10
Consolidated financial report
The interest rate of all three tranches is variable and based on the Net worth
3-month USD LIBOR rate plus a term-dependent margin. Interest pay- As at the reporting date of June 30, 2019, the balance sheet total of
ments are made quarterly. KUKA Group was €3,594.5 million, representing an increase of €242.0
from €3,352.5 million as at January 1, 2019.
Syndicated loan for KUKA Aktiengesellschaft
In February 2018, KUKA AG concluded a syndicated loan agreement with Non-current assets decreased by €142.5 million from €1,214.2 mil-
a consortium of banks for a volume of €520.0 million. The agreement lion at the beginning of the financial year to €1,071.7 million as at
includes a surety and guarantee line (guaranteed credit line) in the June 30, 2019. The decline was primarily due to the reduction in prop-
amount of €260.0 million and a working capital line (cash line), which erty, plant and equipment (June 30, 2019: €341.0 million; January 1,
can also be used for sureties and guarantees, likewise in the amount 2018: €493.7 million). With the completion of the production facility
of €260.0 million. at KUKA Toledo Production Operations LLC, Toledo /USA and the start
of the finance lease, the assets that were included in property, plant
The initial term of the loan agreement was five years. After receiving and equipment and other assets were derecognized and the finance
consent from all banks for a first agreed extension request, the maturity lease was recognized. This results in a balance of €164.2 million as
date has been extended by one year. The loan agreement, which now at June 30, 2019 (H1 /18: €1.0 million). Investments accounted for
expires in February 2024, can be extended by a further year with an at equity increased by €20.6 million from €13.9 million as at Janu-
outstanding extension option. The syndicated loan agreement was ary 1, 2019 to €34.5 million as at June 30, 2019. The increase is related
concluded on an unsecured basis and contains the customary equal to the recognition of an at-equity investment in a Chinese company in
treatment clauses and negative pledges, as well as financial covenants the segment Logistics Automation. Deferred tax assets increased by
with regard to thresholds for leverage (net financial liabilities /EBIDTA) €40.5 million to €131.0 million as at June 30, 2019 (January 1, 2019:
and interest coverage (EBITDA /net interest expense). €90.5 million). As a result of the mandatory application of the new
leases standard (IFRS 16) with effect from January 1, 2019, changes
As at the balance sheet date, the utilization of the guarantee facility were made in the opening balance sheet. Total assets increased by
and cash credit line from the syndicated loan agreement of KUKA AG €134.0 million as at January 1, 2019 due to the capitalization of a
amounted to a total of €363.5 million (H1 /18: €260.4 million). right-of-use asset. As at June 30, 2019, the right-of-use asset was
reduced to €125.4 million due to straight-line depreciation. Similarly,
The contract contains a change-of-control clause that is typical in the current and non-current finance lease liabilities were recognized on the
industry, under the terms of which the syndicated banks may demand liabilities side.
repayment of the loan in the event that a shareholder (or group of
shareholders acting in concert) acquires control of at least 30% of the Current assets totaled €2,208.7 million as at June 30, 2019 (Janu-
voting rights of KUKA Aktiengesellschaft, or otherwise has the ability ary 1, 2019: €2,028.1 million). More detailed explanations regarding
to direct the business policy of the company. A change of the direct the current assets are included in the notes on the financial position.
owner within Midea Group is not affected by this provision as long as
Midea Group Co., Ltd. directly or indirectly holds 100% of the shares and Within the reporting period, equity capital increased from €1,339.6 mil-
voting rights of the new owner. The creditors may also declare the loan lion to €1,371.4 million. The growth resulted from earnings after taxes
agreement due for repayment in the cases of a delisting, a squeeze-out amounting to €35.1 million and from the increase in minority interests
or the conclusion of a control and /or profit transfer agreement with a attributable to the founding of a subsidiary with a 50% minority interest
company of Midea Group. in the Healthcare business segment. The dividend payment of €11.9 mil-
lion reduced equity, while currency effects (mainly CHF, CNY and USD)
Guarantees from banks and surety companies increased equity by €8.1 million, of which €2.4 million is attributable
The guarantee volume granted by banks and surety companies outside to minority interests.
the syndicated loan amounted to €67.8 million as at June 30, 2019
(H1 /18: €87.3 million). In accordance with the provisions of the syndi- The valuation of pensions, including the related deferred taxes, in the first
cated loan agreement, KUKA can place guarantees up to a total volume half of 2019, while not affecting earnings, decreased by €10.8 million
of €150.0 million outside the circle of syndicate banks. as a result of a reduction in interest rates. Equity capital attributable to
minority interests increased from €259.7 million as at January 1, 2019
Consolidated Cash Flow Statement to €271.7 million as at June 30, 2019 due to Midea Group’s investment
in a Chinese Healthcare subsidiary. The equity ratio – the ratio of equity
in € millions H1 /18 H1 /19
to the balance sheet total – at the end of the first half-year 2019 was
38.2%, and thus slightly below the ratio at the start of the financial year
Cash earnings 112.1 96.7
(January 1, 2019: 40.0%).
Cash flow from operating activities −95.5 49.8
Cash flow from investment activities −104.3 −72.2 The financial liabilities to third parties (current and non-current) totaled
Free cash flow −199.8 −22.4 €474.2 million. This represents a rise of €88.5 million on the begin-
ning of the financial year (January 1, 2019: €385.7 million) due to the
increased utilization of the syndicated loan agreement.
The balance sheet item “Pensions and similar obligations” was up from
€110.4 million (January 1, 2019) to €121.7 million (June 30, 2019).
This essentially reflects the effect of measuring actuarial gains and losses
not affecting net income, as described in the statement of changes in
equity.
11
KUKA Aktiengesellschaft | Interim Report H1 /19
Current liabilities increased from €1,342.1 million as at January 1, 2019 Swisslog and KUKA present joint development
to €1,493.5 million as at June 30, 2019. The rise is mainly attributable
to the growth of financial liabilities and to the increase in contract lia- The variety of products in small parts warehouses is overwhelming. The
bilities and trade payables. Details of the liabilities for the trade working same is true of their packaging. An ever-increasing number of orders
capital are included in the notes on the financial position. are being placed online. This is transforming the logistics sector. At
LogiMAT 2019, Swisslog presented the next generation of its robotic
Lease liabilities in accordance with IFRS 16 amounted to €127.4 mil- order-picking solution ItemPiQ. The solution, a perfect example of how
lion as at June 30, 2019, of which €97.8 million was non-current and the expertise of KUKA and Swisslog dovetails, uses new robot technology
€29.6 million current. and an intelligent vision system to enhance picking performance and
to utilize machine learning functions. ItemPiQ picks a great variety of
Net liquidity, calculated as cash and cash equivalents less current articles, which are recognized by the intelligent vision system from
and non-current financial liabilities, amounted to €34.4 million as at Roboception. This system is able to identify the gripping points on
June 30, 2019, and was €58.5 million lower than at the beginning of unknown items. Thanks to its multi-function gripper, the small robot
the 2019 financial year (January 1, 2019: €92.9 million). from the KR AGILUS family can handle a wide spectrum of common
products in the retail, e-commerce and pharmaceutical sectors weighing
up to 1.5 kg. Depending on the size, weight, goods-to-robot transfer
in € millions Jan. 1, 2019 June 30, 2019
system and storage method, ItemPiQ can pick up to 1,000 items per
hour. Solutions such as ItemPiQ serve to improve users’ efficiency and
Balance sheet total 3,352.5 3,594.5
give them a competitive edge in their warehouse logistics. Powerful,
Equity 1,339.6 1,371.4 integrative control software, innovative robotic solutions and machine
in % of balance sheet total 40.0% 38.2% learning are the elements that really set these solutions apart.
Net liquidity 92.9 34.4
12
Consolidated financial report
Employees
As at June 30, 2019, KUKA Group employed 14,126 people. Com-
pared with the reporting date of the previous year, this was a rise of
0.8% (June 30, 2018: 14,013). In the Systems segment, the work-
force increased by 2.0% from 3,141 as at June 30, 2018 to 3,204
as at June 30, 2019. The expansion took place mainly in the USA on
account of the production ramp-up at KTPO. At Robotics, the workforce
decreased 3.5% from 5,854 to 5,647 as at June 30, 2019. The Logistics
Automation business segment had 2,012 employees at the end of the
second quarter of this year, 5.9% more than on the reporting date of
the previous year (June 30, 2018: 1,901). The number of employees
at Healthcare was 23.6% up from 870 (June 30, 2018) to 1,076 as at
June 30, 2019. Under the new organizational structure, the Logistics
Automation and Healthcare segments, previously consolidated under
Swisslog, were separated. The employees were allocated to the new
segments, resulting in the difference compared to the previous year. At
the end of the second quarter, 1,422 people were employed in China, an
increase of 5.8% on the previous year’s reporting date (June 30, 2018:
1,345). The workforce was expanded mainly at the new production
location in Shunde.
Outlook
Given the current economic forecasts and general conditions and
taking into consideration the existing risk and opportunity potential,
KUKA anticipates a slight increase in demand in the 2019 financial
year. Growth is expected primarily in the Americas and Asia regions.
We forecast a stable development in Europe. From a sector perspective,
KUKA expects an increase on the previous year for the sales markets
in general industry. Demand in the automotive industry is expected to
remain stable. Uncertainties exist primarily on account of the difficult
global economic situation, which, in turn, results in customers world-
wide showing restraint in placing orders. This goes as well for China,
the world’s largest market for robot-based automation.
On the basis of the current general conditions and exchange rates, KUKA
is expecting slightly higher revenues of around €3.3 billion for the full
year 2019. Working on the basis of the current economic environment
and anticipated business development, KUKA Group expects to achieve
an EBIT margin of approximately 3.5% before final evaluation of the
ongoing reorganization expenditure. Better performance is anticipated
in the second half of the year in line with KUKA’s market expectations
and as a result of the efficiency measures which will have a greater
impact towards the end of the year.
13
KUKA Aktiengesellschaft | Interim Report H1 /19
14
Interim Report
15
KUKA Aktiengesellschaft | Interim Report H1 /19
16
Interim Report
Liabilities
17
KUKA Aktiengesellschaft | Interim Report H1 /19
Revenue reserves
Number Subscribed Capital Currency Actuarial Annual net Equity Minority Total
of shares capital reserve translation gains and income and attributable interests
outstanding losses other reve- to share-
in € millions nue reserves holders
Jan. 1, 2019 39,775,470 103.4 306.6 45.5 −28.3 652.7 1,079.9 259.7 1,339.6
Earnings after taxes – – – – – 34.2 34.2 0.9 35.1
Other earnings – – – 5.7 −10.8 – −5.1 2.4 −2.7
Comprehensive income – – – 5.7 −10.8 34.2 29.1 3.3 32.4
KUKA AG dividend – – – – – −11.9 −11.9 – −11.9
Change in scope of consolidation /
Other changes – – – – – 2.7 2.7 8.6 11.3
June 30, 2019 39,775,470 103.4 306.6 51.2 −39.1 677.7 1,099.8 271.6 1,371.4
Dec. 31, 2017 39,775,470 103.4 306.6 20.1 −23.1 460.1 867.1 −0.5 866.6
Initial application effect of IFRS 9 – – – – – −4.7 −4.7 – −4.7
Jan. 1, 2018 39,775,470 103.4 306.6 20.1 −23.1 455.4 862.4 −0.5 861.9
Earnings after taxes – – – – – 50.3 50.3 0.0 50.3
Other earnings – – – 13.9 2.5 – 16.4 – 16.4
Comprehensive income – – – 13.9 2.5 50.3 66.8 0.0 66.8
KUKA AG dividend – – – – – −19.9 −19.9 – −19.9
Change in scope of consolidation /
Other changes – – – – – −5.3 −5.3 – −5.3
June 30, 2018 39,775,470 103.4 306.6 34.0 −20.6 485.2 908.7 −0.5 908.2
18
Interim Report
19
KUKA Aktiengesellschaft | Interim Report H1 /19
IFRS accounting standards KUKA Aktiengesellschaft is a 94.55% subsidiary of Midea Group Co.
Ltd., Foshan City, Guangdong Province /China. KUKA Aktiengesellschaft
KUKA Aktiengesellschaft, headquartered in Augsburg, has prepared its is incorporated in the consolidated financial statements of Midea Group
interim financial statements for the period ending June 30, 2019 in Co. Ltd., Foshan City, Guangdong Province, China, which are available
line with IAS 34 “Interim Financial Reporting Guidelines” as adopted by from the website www.cninfo.com.cn or directly on the website of Midea
the European Union. The company has elected to prepare a condensed Group Co. Ltd. at www.midea.com /global /investors /financial_state-
version in accordance with this standard. The condensed consolidated ments.
interim financial statements should be read in conjunction with the
consolidated financial statements as at December 31, 2018. Unless The interim report has been neither audited by the auditors of the annual
stated to the contrary, all values are stated in € millions. financial statements nor subjected to an auditor’s review.
The consolidated financial statements were prepared according to the The key performance indicators contained in the interim report have
International Financial Reporting Standards (IFRS) of the International been rounded in accordance with standard commercial practice. In
Accounting Standards Board (IASB) as approved by the European Union. individual cases, it is therefore possible that figures in this report do not
The term IFRS also includes all valid international accounting standards add up exactly to the total stated and that percentages do not precisely
(IAS). The interpretations of the Standing Interpretations Committee correspond to the values indicated.
(SIC) and the International Financial Reporting Standards Interpreta-
tions Committee (IFRS IC) – supplemented by the guidelines stipulated
in section 315e para. 1 of the German Commercial Code (HGB) – were
also taken into consideration.
20
Interim Report
21
KUKA Aktiengesellschaft | Interim Report H1 /19
Accounting and valuation methods Presented below is an overview of the measurement categories accord-
ing to IFRS 16 for the first-time application of the right-of-use assets
With the exception of the changes outlined below, this consolidated and of the corresponding lease liabilities:
interim report is essentially based on the same valuation methodology
and accounting principles as those used for the consolidated financial Carrying amounts according to
statements of the 2018 financial year. For further information, please in € millions IFRS 16 as at Jan. 1, 2019
refer to the consolidated financial statements dated December 31, 2018, Right-of-use asset 134.0
which form the basis of the interim report presented here. These are
Lease liability (non-current) 101.6
also available on the Internet at www.kuka.com.
Lease liability (current) 32.4
With the adoption of IFRS 16, a new accounting model for lease agree-
ments has been implemented with the effect that almost all previous
operating leases have to be reported in the lessee’s balance sheet. It
requires the lessee to capitalize a right-of-use asset, constituting its
Sales revenues
right to use the respective asset. In addition, a liability arising from the
lease is recognized, representing the obligation to make lease payments. Sales revenues are recognized as soon as a contractual obligation is
Exceptions apply to short-term leases (term of less than twelve months) fulfilled by transferring promised goods to a customer or performing a
and leases for assets whose original price is less than €5,000. The provi- service. KUKA Group generates its revenues through the sale of prod-
sions for the lessor have remained largely unchanged, which means that ucts such as industrial robots, through construction contracts and also
the lessor still has to classify leases as finance leases or operating leases. through mainly downstream services. With the sale of products, the
performance obligation is usually satisfied at a specific point in time. In
Tax expenses in the periods covered by the interim reports are deter- the case of construction contracts over a certain period of time and with
mined – as in the previous year – in accordance with IAS 12 and IAS 34 services, both types of performance obligation fulfillment may apply.
on the basis of the currently expected tax rate for the full year.
In the first half-year 2019, KUKA Group generated sales revenues of
€1,539.6 million (H1 /18: €1,597.2 million). €772.2 million (H1 /18:
Changes in accounting and valuation €880.5 million) of these revenues were attributable to fulfillment
of performance obligations over a period of time and €767.4 million
methods and changes in estimates (H1 /18: €716.7 million) to obligation fulfillment at a specific point in
time. Compared to the same period of the previous year, there was a
Since the start of the 2019 financial year, application of IFRS stan- shift in revenues towards the fulfillment of obligations at a point in time.
dard 16 has been mandatory on account of endorsement by the Euro- The revenues are currently almost equally distributed between the two
pean Union. The initial application for KUKA therefore corresponds to types at the moment. The breakdown of sales revenues at segment level
the date of application stipulated by the IASB. For the newly applicable includes intercompany revenues, while at regional level only external
IFRS standard, no retroactive adaptation of the previous year’s figures Group sales revenues is reported.
has been carried out.
A breakdown of sales revenues recognized over time and at a point in
The first-time application of IFRS 16 resulted in the recognition of time for the individual regions and business segments is provided in
right-of-use assets and of the corresponding lease liability – classified the following table:
separately as current and non-current. Overall, the balance sheet total
consequently increased by €134.0 million to €3,352.5 million from
December 31, 2018, to January 1, 2019. The effects of the changeover
can be seen in the balance sheet.
H1 /19 H1 /18
Group Europe / Americas Asia / Group Europe / Americas Asia / Other /con-
Middle Australia Middle East / Australia solidation
in Mio. € East /Africa Africa
Revenue recognized over a period
of time 772.2 328.1 246.0 98.1 880.5 239.0 483.8 119.2 38.4
Revenue recognized at a point in
time 767.4 480.5 100.2 186.7 716.7 452.7 94.9 169.1 0.0
Total 1,539.6 808.6 446.2 284.8 1,597.2 691.7 578.7 288.3 38.4
H1 /19
Group Systems Robotics Logistic Healthcare China Other /
in Mio. € Automation consolidation
Revenue recognized over a period of time 772.2 364.6 114.7 227.1 96.5 65.9 −96.6
Revenue recognized at a point in time 767.4 91.2 447.6 57.5 9.2 161.8 0.1
Total 1,539.6 455.8 562.3 284.6 105.7 227.7 −96.4
22
Interim Report
The interest rate of all three tranches is variable and based on the
3-month USD LIBOR rate plus a term-dependent margin. Interest pay-
ments are made quarterly.
H1 /18
Group Systems Robotics Logistic Healthcare China Other /
Automation consolidation
880.5 398.4 101.9 243.0 93.4 92.9 −49.1
716.7 57.3 455.9 53.3 11.0 141.4 −2.2
1,597.2 455.7 557.8 296.3 104.4 234.3 −51.3
23
KUKA Aktiengesellschaft | Interim Report H1 /19
The initial term of the loan agreement was five years. After receiving Level 3
consent from all banks for a first agreed extension request, the maturity
date has been extended by one year. The loan agreement, which now Inputs for assets and liabilities that are not based on observable market
expires in February 2024, can be extended by a further year with an data
outstanding extension option. The syndicated loan agreement was
concluded on an unsecured basis and contains the customary equal The following table shows the breakdown of the financial assets and
treatment clauses and negative pledges, as well as financial covenants liabilities measured at fair value:
with regard to thresholds for leverage (net financial liabilities /EBIDTA)
and interest coverage (EBITDA /net interest expense). June 30, 2019
As at the balance sheet date the utilization of the guarantee facility in € millions Level 2 Level 3 Total
and cash credit line from the syndicated loan agreement of KUKA AG Financial assets 5.9 8.5 14.4
amounted to a total of €363.5 million (H1 /18: €260.4 million). Financial liabilities 6.4 – 6.4
The guarantee volume granted by banks and surety companies outside All other financial instruments existing in KUKA Group are reported at
the syndicated loan amounted to €67.8 million as at June 30, 2019 amortized cost, their fair values mainly corresponding to the carrying
(H1 /18: €87.3 million). In accordance with the provisions of the syndi- amounts.
cated loan agreement, KUKA can place guarantees up to a total volume
of €150.0 million outside the circle of syndicate banks.
Segment reporting
Financial instruments measured at The previous organizational structure was revised and improved with
effect from January 1, 2019. KUKA Group now comprises five business
fair value segments – Systems, Robotics, Logistics Automation, Healthcare and
China. The former centralized structure was loosened and the individual
IFRS 13 governs the determination of fair value and the related disclo- segments have been given greater responsibility. In addition, the holding
sures in the notes. The standard does not include an explicit definition structure was streamlined.
of the cases in which fair value is to be used. Here, fair value is defined
as the price that would be paid by independent market participants in an Among other things, the Systems segment provides customers with tai-
arm’s length transaction at the evaluation date if an asset were sold or lor-made solutions for automating production processes. In the Robotics
a liability transferred. In accordance with IFRS 13, assets and liabilities segment, robots are developed, produced and marketed. By splitting
measured at market values are to be attributed to the three levels of Swisslog into Logistics Automation and Healthcare, both business seg-
the fair value hierarchy. The individual levels of the fair value hierarchy ments can exploit their industry expertise to the full with their broad
are defined as follows: ranges of products and services. Logistics Automation offers automated
24
Interim Report
robot-based and data-driven intralogistics systems, while Healthcare Composition of the Supervisory Board
provides medication management solutions. The China segment was
additionally introduced, uniting all the aforementioned segments and The Supervisory Board consists of the following members:
their competencies.
›› Dr. Yanmin (Andy) Gu (Chairman of the Supervisory Board)
Earnings before interest and taxes (EBIT) are used as the key indicator ›› Mr. Michael Leppek (Deputy Chairman of the Supervisory Board)
with regard to managing segment profits. ›› Mr. Wilfried Eberhardt
›› Mr. Hongbo (Paul) Fang (until July 10, 2019)
The main elements of the segment reports are contained in the man- ›› Mr. Manfred Hüttenhofer
agement report on the new business segments, as well as in the tables ›› Prof. Dr. Henning Kagermann
at the beginning of the notes to the half-yearly report. ›› Mr. Armin Kolb
›› Ms. Carola Leitmeir
›› Ms. Min (Francoise) Liu
Cash flow statement ››
››
Dr. Myriam Meyer
Ms. Tanja Smolenski
Changes to KUKA Group’s liquidity position are presented in the cash ›› Mr. Alexander Liong Hauw Tan
flow statement in accordance with IAS 7. This item includes all cash ›› Dr. Chengmao Xu (from July 10, 2019)
and cash equivalents shown in the balance sheet (cash on hand, checks
and credit balances) to the extent that they are available within three
months. As at June 30, 2019, the cash and cash equivalents subject to Responsibility statement
restrictions amounted to €0.4 million (January 1, 2019: €0.5 million).
This is related to government funding for eligible development projects To the best of our knowledge and belief, and in accordance with the
at two KUKA Group subsidiaries. applicable reporting principles for interim financial reporting, the
Group’s condensed interim financial statements give a true and fair
view of the assets, liabilities, financial position and income of the Group,
Contingent liabilities and other and the Group’s interim management report includes a fair review of
the development and performance of the business and the position of
financial commitments the Group, together with a description of the principal opportunities
and risks associated with the expected development of the Group in the
Compared with December 31, 2018, the other financial liabilities rest of the financial year.
decreased from €14.5 million to €10.5 million and purchase commit-
ments from €40.8 million to €24.2 million. Augsburg, August 6, 2019
25
KUKA Aktiengesellschaft | Interim Report H1 /19
26
Financial calendar 2019
This quarterly report was published on August 6, 2019, and is available in German and English from
KUKA Aktiengesellschaft Corporate Communications /Investor Relations department. In the event of
doubt, the German version applies.
Corporate Communications
T +49 821 797 - 3722
F +49 821 797 - 5213
press@kuka.com
Investor Relations
T +49 821 797 - 5226
F +49 821 797 - 5213
ir@kuka.com
www.kuka.com