Financial Services (FS) segment

Business performance

The Financial Services (FS) segment is the central financing partner in the KION Group. The FS segment benefited from the increase in business in the LMH and STILL brand segments, enjoying growth in the financing of short-term rental business (which is the operational responsibility of the brand segments) and in the long-term leasing business with external end customers. As in 2013, a large proportion of the financing portfolio was focused on business in western Europe, with some countries, notably in southern Europe, accounting for a disproportionately high amount of volume growth. FS was also able to expand its business outside western Europe, generating significant growth particularly in eastern Europe.

FS has attracted further funding partners in connection with the growing business. It has focused on banks operating at a regional level, providing useful additions to the already well-developed network of global partners. FS has also initiated discussions with potential banking partners in North America with a view to supporting the planned expansion of business in the region.

Financial position and financial performance

Revenue from long-term leasing business with external end customers once again increased markedly compared with the already high level achieved in 2013 to €350.1 million (2013: €314.7 million). As a consequence of the expansion in the short-term rental fleet, intra-group revenue rose by 20.5 per cent to €270.7 million (2013: €224.7 million). Total segment revenue therefore amounted to €620.9 million (2013: €539.4 million). Earnings before tax came to €5.2 million, exceeding the figure of €4.7 million in 2013. The return on equity (ROE) was 13.0 per cent (2013: 13.0 per cent).

As at 31 December 2014, total segment assets amounted to €1,361.3 million and had therefore increased by €111.9 million in the year under review. Of this total, €521.9 million was accounted for by lease receivables due from external customers (31 December 2013: €458.1 million), while €473.0 million (31 December 2013: €449.1 million) related to the financing of the short-term rental fleet in the LMH and STILL segments. Leased assets under operating leases relating to external customer contracts amounted to €267.4 million (31 December 2013: €240.7 million).

The funding of leases with external end customers gave rise to leasing liabilities with external funding partners amounting to €702.9 million (31 December 2013: €615.5 million). The leasing liabilities arising from the funding of intra-group leases with LMH and STILL relating to the short-term rental fleet business amounted to €334.5 million (31 December 2013: €319.7 million). The net financial debt attributable to the FS segment was €155.1 million (31 December 2013: €163.6 million). > TABLE 023