Financial Services segment

The Financial Services (FS) segment is the central financing partner for end-customer leasing and short-term rental fleet financing for the LMH and STILL brand segments. It benefited from growing demand in the first nine months. Intra-group revenue from financing for the short-term rental business – for which the LMH and STILL brand segments have operational responsibility – rose considerably, from €151.3 million to €190.0 million. Long-term leasing with external end customers generated revenue of €237.1 million, which was virtually unchanged year on year (Q1 – Q3 2013: €233.5 million).

At €1,325.8 million, segment assets had grown compared with the end of 2013 (31 December 2013: €1,249.4 million) and were 19.5 per cent higher than the figure at 30 September 2013 of €1,109.4 million.

Net interest income, which is a key element of the segment’s earnings, fell to €2.3 million (Q1 – Q3 2013: €3.3 million). Nevertheless, earnings before tax came to €3.9 million, just higher than in the prior-year period (Q1 – Q3 2013: €3.5 million). As at 30 September 2014, the FS segment had intra-group lease receivables of €474.4 million from the LMH and STILL brand segments relating to the intra-group financing of the short-term rental fleet (31 December 2013: €449.1 million; 30 September 2013: €389.0 million). The funding of these intra-group long-term leases (finance leases) with LMH and STILL resulted in lease liabilities of €338.7 million (31 December 2013: €319.7 million; 30 September 2013: €268.8 million).

Net financial debt amounted to €160.9 million as at 30 September 2014 (31 December 2013: €163.6 million; 30 September 2013: €184.0 million). Return on equity (ROE) stood at 13.0 per cent, making it virtually unchanged on the comparative prior-year figure. >> Table 10