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 further growth in demand for financing solutions in the first half of this year. Long-term leasing business with external end customers amounted to €184.5 million, compared with €152.5 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 €1,466.3 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 June 2014: €1,286.6 million).

Net financial income in the form of net interest income is a key element of the segment’s earnings and amounted to €2.9 million (H1 2014: €1.9 million). Earnings before tax came to €2.7 million, which was comparable to the figure of €2.6 million for the first half of 2014. As at 30 June 2015, the FS segment had intra-group lease receivables of €516.0 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 June 2014: €468.4 million). The funding of intra-group long-term leases (finance leases) with LMH and STILL resulted in lease liabilities of €377.5 million (31 December 2014: €334.5 million; 30 June 2014: €331.8 million). Net financial debt amounted to €174.1 million at the end of the second quarter (31 December 2014: €155.1 million; 30 June 2014: €155.2 million). The return on equity (ROE) of 13.2 per cent was slightly above the level at the end of last year (31 December 2014: 13.0 per cent). > TABLE 10

Key figures − Financial Services −

 

 

10

in € million

Q2 2015

Q2 2014

Change

Q1 – Q2 2015

Q1 – Q2 2014

Change

1

Includes liabilities from financing of the short-term rental fleet reported as other financial liabilities

2

Earnings before taxes divided by average equity employed excluding net income (loss) for the current period

Revenue

182.1

138.3

31.6%

329.4

277.3

18.8%

Adjusted EBITDA

22.1

20.2

9.1%

43.8

38.5

13.8%

Adjusted EBIT

–0.1

0.2

<–100%

–0.2

0.8

<-100%

Earnings before taxes (EBT)

1.3

1.3

2.2%

2.7

2.6

2.4%

 

 

 

 

 

 

 

Total segment assets

1,466.3

1,286.6

14.0%

1,466.3

1,286.6

14.0%

 

 

 

 

 

 

 

Leased assets

288.5

249.2

15.8%

288.5

249.2

15.8%

Lease receivables

1,078.0

937.8

15.0%

1,078.0

937.8

15.0%

thereof lease receivables from long-term leases to third parties

562.0

469.4

19.7%

562.0

469.4

19.7%

thereof lease receivables from LMH and STILL from funding of the short-term rental business

516.0

468.4

10.2%

516.0

468.4

10.2%

 

 

 

 

 

 

 

Lease liabilities1

1,138.6

972.3

17.1%

1,138.6

972.3

17.1%

thereof liabilities from funding of the long-term leases with third parties

761.1

640.6

18.8%

761.1

640.6

18.8%

thereof liabilities from funding of the short-term rental business of LMH and STILL

377.5

331.8

13.8%

377.5

331.8

13.8%

Net financial debt

174.1

155.2

12.2%

174.1

155.2

12.2%

Equity

43.5

42.1

3.5%

43.5

42.1

3.5%

 

 

 

 

 

 

 

Return on equity2

 

 

 

13.2%

13.0%