Financial Services segment

The Financial Services (FS) segment is the central financing partner for the LMH and STILL brand segments’ end-customer leasing and financing of the short-term rental fleet. In the second quarter of 2014, the FS segment again registered growing demand for financing. Whereas revenue from internal financing increased, there was a moderate decline in long-term leasing with external end customers, with revenue falling from €157.4 million in the first half of 2013 to €152.5 million in the reporting period. Financing for short-term rental business achieved significant growth. The LMH and STILL brand segments have operational responsibility for this business, which is recognised as intra-group revenue. At €1,286.6 million, the FS segment’s assets were up compared with the end of last year (31 December 2013: €1,249.4 million), rising by around €29 million over the second quarter alone. They had also increased significantly compared with 30 June 2013 (€1,077.2 million) due to the greater volume of orders.

Net interest income, which is a key element of the segment’s earnings, stood at €1.9 million and was therefore close to the figure for the first six months of the previous year (H1 2013: €2.1 million) owing to the largely parallel growth of interest income and interest expenses. Earnings before tax came to €2.6 million, which was slightly higher than in the prior-year period (H1 2013: €2.3 million).

As at 30 June 2014, the FS segment had intra-group lease receivables of €468.4 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 June 2013: €380.3 million). The funding of these intra-group long-term leases (finance leases) with LMH and STILL resulted in lease liabilities of €331.8 million (31 December 2013: €319.7 million; 30 June 2013: €262.9 million).

Net financial debt amounted to €155.2 million as at 30 June 2014 (31 December 2013: €163.6 million; 30 June 2013: €175.6 million). Return on equity (ROE) was 13.0 per cent, the same as it had been at the end of 2013. >> TABLE 10