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 registered growth in demand for financing solutions in the first three quarters of this year. Long-term leasing business with external end customers amounted to €292.8 million, compared with €237.1 million in the corresponding prior-year period. Financing for short-term rental business also achieved significant growth. The LMH and STILL brand segments manage this business, which is recognised as intra-group revenue. External leasing business with end customers continued to be concentrated in western Europe. At €1,510.4 million, the FS segment’s assets were higher than at the end of last year (31 December 2014: €1,361.3 million) and up significantly year on year (30 September 2014: €1,325.8 million).

Net financial income in the form of net interest income is a key element of the segment’s earnings and rose to €4.8 million (Q1 – Q3 2014: €2.3 million). At €4.0 million, earnings before tax was on a par with the previous year (Q1 – Q3 2014: €3.9 million). As at 30 September 2015, the FS segment had intra-group lease receivables of €520.4 million from the LMH and STILL brand segments relating to the intra-group financing of the short-term rental fleet (31 December 2014: €473.0 million: 30 September 2014: €474.4 million). The funding of intra-group long-term leases (finance leases) with LMH and STILL resulted in lease liabilities of €375.0 million (31 December 2014: €334.5 million: 30 September 2014: €338.7 million). Net financial debt totalled €167.1 million at the end of the reporting period (31 December 2014: €155.1 million; 30 September 2014: €160.9 million). The return on equity (ROE) of 13.2 per cent was slightly higher than at the end of last year (31 December 2014: 13.0 per cent). > TABLE 10