[38] Contingent liabilities and other financial commitments

Contingent liabilities

Contingent liabilities break down as follows:

Of the total amount of guarantees and indemnities, €131.3 million related to guarantees for down payments, contract performance, and warranty obligations (December 31, 2023: €166.5 million). These guarantees had been issued by banks, predominantly in connection with the project business of the Supply Chain Solutions segment.

The decrease in guarantees and indemnities in 2024 primarily resulted from insurance policies being taken out to provide cover for future payment commitments in respect of defined benefit obligations in the United Kingdom and to the related reduction in the default guarantees (further information can be found in note [29]).

Litigation

The legal risks arising from the KION Group’s operating business are typical of those faced by any company in this sector. The Group companies are a party in a number of pending lawsuits in various countries. The individual companies cannot assume with any degree of certainty that they will win any of the lawsuits or that the existing risk provision in the form of insurance or provisions will be sufficient in each individual case. However, the KION Group believes it is unlikely that these ongoing lawsuits will require funds to be utilized that exceed the provisions recognized.

Other financial commitments

Other financial commitments break down as follows:

Sundry other financial commitments included possible future payment obligations to related parties amounting to €2.6 million (December 31, 2023: €4.6 million).