Financial Services (FS) segment

Business performance

As the central funding partner of the LMH and STILL brand segments, the Financial Services (FS) segment benefited from a further increase in demand for lease finance, particularly in Europe outside Germany. Operational responsibility for the short-term rental business (short-term rental fleet) lies with the LMH and STILL brand segments. FS acts as the contractual partner to the brand segments, providing the financing both for long-term leasing and for the short-term rental fleet, mostly on the basis of sale and leaseback agreements.

In 2013, long-term business with external end customers grew at a somewhat stronger rate than finance for the LMH and STILL segments’ short-term rental business. The assets of the Financial Services segment had increased to €1,249.4 million as at 31 December 2013 (31 December 2012: €1,039.0 million). Of this amount, €458.1 million was accounted for by lease receivables from external customers and €449.1 million by lease receivables from the LMH and STILL segments relating to the financing of the short-term rental fleet. Another €240.7 million was attributable to leased assets under operating leases relating to external customer contracts. Leasing business, which generated lease originations of €436.0 million, continued to focus on the core European markets of France, Germany, Italy, Spain and the United Kingdom. The volume of business in eastern Europe, China and Brazil remained at a low level.

Financial performance

Segment revenue, including internal revenue from the financing of the LMH and STILL segments’ short-term rental fleet, advanced by 5.9 per cent to €539.4 million (2012: €509.3 million). Revenue generated from external customers went up by 6.0 per cent, from €296.8 million to €314.7 million. The FS segment’s earnings before tax came to €4.7 million, which was just below the figure for 2012 of €4.8 million. As at 31 December 2013, return on equity (ROE) remained unchanged on the prior year at 13.0 per cent. >> Table 023