UDC 657.3 BBK 65. 052

BALANCED SYSTEM OF INDICATORS FOR A LEASING COMPANY

Yu.N.Ivanova, L.A.Zhukova

St. Petersburg State University

service and economics (SPbGUSE) 191015, St. Petersburg, st. Kavalergardskaya, 7, lit. A

IN life cycle Any organization in the process of its functioning comes a moment when, having achieved a certain scale of activity and stability in its industry, management makes a decision to develop and achieve strategic development goals aimed at consolidating and maintaining the achieved results and positions in the market.

One of the most effective ways solution to this problem is the development of a balanced scorecard system (Balanced Score Card, BSC), which is a tool for strategic and operational management of the company’s activities based on measuring and assessing its effectiveness based on a set of optimally selected financial and non-financial indicators.

SSP appeared in the late 80s - early 90s. In a study of 12 companies, Harvard School of Economics professors Robert Kaplan and David Norton found that companies were too focused on financial indicators. To achieve set values ​​in the short term, company management reduces current costs for training, marketing and customer service, which in the long term negatively affects the overall financial situation. As a solution to this problem, the concept of the Balanced Scorecard was developed, which received worldwide recognition after the publication in the Harvard Business Review of the article “The Balanced Scorecard: Measures that drive performance” (System balanced scorecards: measurements leading to execution) .

The BSC in its classic version contains 4 projections, which represent strategically important aspects of the company’s activities:

Finance;

Clients;

Internal business processes;

Staff.

In order to link the company’s strategic goals with current business processes and the daily actions of employees at each level of management, as well as to continuously monitor the implementation of a unified strategy, it is necessary to develop key

performance indicators - KPI (English Key Performance Indicators, KPI) - indicators of achieving goals, and establish cause-and-effect relationships and mutual influencing factors between them.

The main principle of the BSC is the principle of measurability. Management using the BSC is carried out by defining goals, the degree of achievability of which is expressed in the form of a set of indicators. For each indicator, a range of acceptable values ​​is specified. Monitoring whether the indicator is within the established boundaries determines the correctness (or error) of the path chosen to achieve the goals.

Here are just some indicators of achieving the company’s goals (by projection):

Financial indicators:

Gross income (sales income);

Gross margin (or gross profit);

Net profit;

Profit as a percentage of sales revenue;

Profit per employee;

Return on equity (ROE);

Return on investment (ROI);

Economic Value Added (EVA).

Indicators for clients:

Market share occupied by the company;

Sales growth due to the existing customer base;

Sales growth due to new customers;

Customer Satisfaction Index.

Internal business process indicators:

Resource costs: temporary (cycle, duration,

productivity: sales per employee; profit per employee; number of operations performed by one employee) and material;

Costs of education, training and advanced training of employees;

Efficiency of resource use per unit of production: equipment utilization rates, resource utilization rates, raw materials and supplies;

Administrative (overhead) costs;

Personnel indicators:

Staff turnover;

Average length of service in the company;

Absenteeism rate;

Added value per employee;

Employee satisfaction.

The BSC concept represents the financial component (indicators in the “Finance” projection) as the ultimate goal for measuring the degree of implementation of the company’s strategy. Here are some strategic goals of the company:

Purpose of the company from the owner’s point of view Strategic goals of the company’s activities

Company - investment project Increasing profitability or return on investment (I01)

The company is an asset for resale Increasing it market value for the purpose of sale

The company is a source of income for the owner. Balanced growth, profit generation, free cash flow

Manufacturer company within the holding Production required to build the holding’s production chain

Each strategic goal of a company involves a different financial strategy and financial goals. Provided that the company operates on a free market and there are no prerequisites for cessation of activity, the ultimate financial goal will be balanced growth and profit maximization. A company can maximize profits by first selling more (growth strategy) and second by spending less (cost minimization strategy). As a rule, regardless of the model that a company uses, in order to management accounting it all comes down to identifying the main performance indicators of the company, establishing target values ​​for one or another indicator, promptly recording the results achieved and identifying deviations.

Most of the indicators in the “Clients”, “Internal Business Processes”, and “Personnel” projections are non-financial indicators and are not contained in standard financial statements. It is therefore not surprising that investors are placing an increasing role in their investment decisions. management reporting.

Particular attention is paid to management reporting at enterprises specializing in the field of financial leasing, which is also called leasing. This is due both to the complex and ambiguous content reflected by the term “leasing”, and to differences in legal and reporting systems different countries. In our country this problem is especially acute, which is due, first of all, to the absence of a separate PBU regulating rental relations, and, as a consequence, significant distortion economic essence financial lease and its reflection in financial statements. The quality and reliability of the information presented in the financial statements of domestic leasing companies leads to the loss of its main purpose - the need

for users.

In accordance with Chapter 34 of the Civil Code of the Russian Federation, financial lease (leasing) is one of the types of lease legal relations. Article 665 of the Civil Code of the Russian Federation defines a financial lease as follows: “Under a financial lease agreement (leasing agreement), the lessor undertakes to acquire ownership of the property specified by the lessee from a seller specified by him and to provide the lessee with this property for a fee for temporary possession and use. In this case, the lessor is not responsible for the choice of the rental item and the seller.”

Article 2 of the Federal Law “On Financial Lease (Leasing)” uses the following basic concepts:

- “leasing is a set of economic and legal relations arising in connection with the implementation of a leasing agreement, including the acquisition of the leased asset;

A leasing agreement is an agreement under which the lessor (hereinafter referred to as the lessor) undertakes to acquire ownership of the property specified by the lessee (hereinafter referred to as the lessee) from a seller specified by him and to provide this property to the lessee for a fee for temporary possession and use. The leasing agreement may provide that the choice of the seller and the purchased property is carried out by the lessor;

Leasing activity - type investment activities on the acquisition of property and its transfer to leasing.”

According to international practice, leasing is one of the types of rental relations, which is characterized by the fact that a) the lessee does not acquire ownership rights to the leased object; b) the risks and benefits of using the leased object lie with the lessee; c) payment is made in installments and (usually) covers the fair value of the leased asset and the required rate of return of the lessor.

In world practice, there are two main types of lease: operating and financial1 - “operating lease” and “financial lease”. In Anglo-Saxon law, a finance lease is broadly interpreted as a leasing transaction in which the full value of a fixed asset is paid during the lease term. Thus, a finance lease generally means the acquisition of a fixed asset or intangible asset, i.e.

1 At the same time, the international concept of “operating lease” is identical to the Russian term “lease”, and the international concept of “financial lease” corresponds to the Russian terms “financial lease” and “leasing”.

is an alternative form of financing. In contrast, an operating lease is used to acquire the right to use an asset for a specified period of time without purchasing the asset itself; therefore, in a lease, the lessee avoids most of the risks associated with owning a fixed asset or intangible asset.

Reflecting finance leases in accordance with IFRS requires the accountant to apply two ideas of the Standards that are practically not implemented in domestic practice. This is the principle of priority of content over form and discounting.

IAS 17 Leases defines a finance lease as a lease that substantially transfers all the risks and rewards of ownership from the lessor to the lessee. The transfer of an asset to the lessee is treated in the lessor's accounting in the same way as its disposal.

The procedure for measuring and recognizing a finance lease by a lessor under IAS 17 is based on the content of a number of key concepts: “gross investment in a lease”, “net investment in a lease” and “unearned finance income”.

Gross investment in a lease refers to the total minimum lease payments due to the lessor under the agreement, as well as the residual value of the leased asset (guaranteed or unguaranteed by the lessee).

The net investment in the lease is the gross investment discounted at the contractual interest rate (or the market rate, if higher). Essentially, the net investment is the fair value of the leased asset to the lessor, taking into account its initial direct costs.

The difference between the gross and net investment represents the financial return of the lessor. At the start of the lease term, this is income not yet earned by the lessor.

The fact of transferring an asset under a finance lease presupposes:

a) either write-off (decapitalization) of the carrying amount of the leased asset with simultaneous recognition of the difference between the fair value of the transferred asset and its carrying value as the financial result of the current period,

2 IFRS - International standards financial statements (English: International Financial Reporting Standards (IFRS) or International Accounting Standards (IAS) - current editions)

b) or a reflection of the fact of providing a credit (loan) to the lessor in the event of purchasing a leased object specifically for this tenant.

In both cases, unearned financial income from finance lease transactions must be recognized as received over the entire period of the agreement.

In Russian practice, property leased is reflected in accounting as part of profitable investments in tangible assets in accordance with the Regulations on accounting“Accounting for fixed assets” PBU 6/01. The formation of accounting records to reflect income and expenses for financial leasing transactions depends on whose balance sheet the property leased is taken into account. A financial lease agreement can be of two types:

The leased property is recorded on the lessee's balance sheet;

Leased property is recorded on the lessor's balance sheet.

A dual approach to accounting for income and

expenses for operations that have a single economic content violates the comparability of financial indicators.

In our opinion, to level this provision In leasing companies, in order to maintain internal management accounting, it is necessary to develop an accounting policy based on a unified methodological basis. The approach proposed by IFRS (IAS 17) seems more logical, which is more consistent with the requirement proclaimed in paragraph 6 of PBU 1/2008 “Accounting policies of an organization”: “reflection of facts in accounting economic activity based not so much on their legal form, how much of their economic content and business conditions (the requirement of priority of content over form).”

Thus, the development of key financial indicators of leasing companies affects the basics of accounting and financial reporting. We believe that the elimination of methodological differences in the reflection in management accounting of transactions with property transferred for leasing is a necessary condition for the successful implementation of the BSC in the management of a leasing company.

To implement the BSC in the management of a leasing company, it is necessary to develop financial and non-financial indicators (indicators). All indicators participating in the BSC must be connected by a cause-and-effect chain that describes a single strategy. Peculiarity

financial indicators in that they reflect the "final destination" in the company's strategy. We have formulated financial indicators that can serve as a measurement of the degree to which a leasing company achieves its strategic goals in the “Finance” projection:

1. Sales income.

Income from core activities (sales income) is income received in the form of leasing margin, income from the sale of leased items, remuneration under agency agreements, etc. This indicator can be formed on the basis of both accounting and management accounting data. However, planning this indicator in strategic goals should be based on information from management reporting, namely:

Sales volume - the cost of property leased;

The volume of new business is the total value of leasing contracts concluded during the reporting period.

The volume of new business is a larger indicator because includes the sales volume in monetary units and the increase in the cost of the leasing agreement (leasing margin, loan interest and cost additional services, such as costs of insurance and registration of the leased asset, property tax and other taxes related to the type of leased asset);

Portfolio indicators are the main indicators characterizing the activities of a leasing company. They must be clearly interconnected with non-financial indicators in the “Clients” projection.

Gross portfolio - the amount of leasing payments provided for in current agreements that will be received from lessees after the reporting date.

The net portfolio is the amount of the client's principal debt under a particular leasing agreement. Portfolio indicators are dynamic, and therefore, when calculating the gross portfolio for one reporting date, different values ​​can be obtained at different points in time. This is achieved by signing additional agreements with clients that adjust certain components of the contract.

Underpayments are the size of the absolute amount of underpayments relative to portfolio size.

In fact, this indicator shows what amount of lease payments was not received in the total volume of lease payments. If we consider this indicator from a strategic point of view, then, if there is a certain level of underpayments, the company incurs losses caused by

delay in cash payments, firstly, because money tends to lose its value over time, and secondly, these funds could be used by the company to expand its business. If you stabilize and maintain the indicator at a certain level, then it is possible to predict cash flows, adjusting possible losses, and also based on this indicator, it is possible to predict the receipt of income in the form of penalties and fines.

2. Indicators of financial results (profitability).

The main indicators of this section, as in a company in any other field of activity, are the indicators of the profit and loss statement: gross profit, net profit. In the BSC, not absolute, but relative financial indicators are more actively used, namely: profit as a percentage of sales income; profit per employee.

At strategic planning and the development of KPIs, special attention is paid to establishing current and future benchmark parameters for leasing activities, which the company itself can influence.

With such reference parameters for leasing transactions can be:

Cost of the leased item;

Advance payment amount;

Effective interest rate;

Duration of the leasing agreement;

Postponement of delivery of the leased item;

The size of the leasing margin;

Type of leasing payment: equal or decreasing payments;

Type of leased item (leasing segments - cars, trucks, construction equipment).

When choosing benchmark parameters for leasing transactions, it is necessary to take into account not only profitability, but also the level of risk. Thus, the company needs to determine the parameters of leasing transactions based on minimal risk at the maximum level of profitability.

LITERATURE

1. Civil Code Russian Federation. Parts 1,2,3 and 4. - M.: Eksmo, 2011.

2. the federal law“On financial lease (leasing).” M.: Omega-L, 2010.

3. Nemirovsky I.B., Starozhukova I.A. Budgeting. From strategy to budget - step by step guide. M.: LLC "I.D. Williams", 2006.

4. All accounting provisions: current, adopted, projects for reform. M.: Eksmo, 2010. (Russian legislation. Accounting normative literature).

5. Kaplan R.S., Norton D.P. The Balanced Scorecard: Measures That Drive Performance // Harvard Business Review. January - February. 1992.

Leasing margin – 4 percent per annum.

To calculate the amount of lease payments, the annuity formula is used.

P = A * I: T/(1 – 1: (1 + I: T) T* P)

P – amount of lease payments;

A – the cost of the leased property;

P – contract term;

I – leasing interest rate;

T – frequency of lease payments.

In accordance with the conditions we are considering, the company’s expenses for financial leasing are:

P = $9,883

To determine the payment amount adjusted by the residual value, the discount multiplier formula is used, from which:

Taking into account the adjustment for K (residual value factor), the lease payment amount will be equal to $9,869.

Thus, the amount of leasing payments at 1% residual value of the equipment will be 237,856.

Since the first rental payment is made in advance at the time the lessee signs the protocol on acceptance of the equipment, that is, not at the end, but at the beginning of the interest period with quarterly frequency of interest payments, another adjustment is made to the calculation of the payment amount using the formula:

This correction factor is 0.9217.

This means that the company's expenses are reduced by almost 8 percent due to the timing of lease payments.

Using this adjustment factor, the total lease payments are $219,310.

According to existing rules, the enterprise's expenses for obtaining equipment must also include costs that are identical in direction and amount to the credit scheme for purchasing equipment.

Enterprise expenses for customs duties, fees and VAT are taken into account in an agreement with the leasing company that these payments are included in the leasing agreement.

Lessor ( leasing company) pays them at the border, and then they are additionally taken into account in lease payments during the year and are paid by the lessee enterprise in excess of the calculated amount of leasing interest on the terms of attracting credit resources for this transaction and receiving the corresponding leasing margin by the lessor. As you can see, both parties (leasing company and lessee) are interested in this scheme.

However, unlike loan costs, the increase in price will be made at a coefficient of 0.04 (leasing margin).

The company's leasing expenses (with payment at the beginning of the quarter), taking into account the costs of customs duties, fees, and value added tax, will amount to $279,042.

Payments are made in equal installments at the beginning of each quarter throughout the lease agreement.

A comparison of the enterprise's expenses when purchasing equipment using credit funds compared to leasing expenses will be as follows:

326,465: 279,042 = 1.170, that is, loan costs exceed leasing costs by 17 percent.

Thus, we can conclude that leasing, as a method of long-term investment, can be quite profitable for an enterprise in comparison with other forms of investment in fixed production assets.

CHAPTER 3. COMPARATIVE ANALYSIS OF LEGAL SUPPORT OF INTERNATIONAL AND RUSSIAN LEASING OPERATIONS

3.1. Regulation of leasing relations by Russian legislation

The purpose of the legal chapter is to analyze the legal acts governing relations under an international leasing agreement, as well as compare international and Russian regulatory documents and conclusion of the most significant differences in approaches to the regulation of international leasing. The relevance of this issue is determined by the fact that, in accordance with the Constitution of the Russian Federation, international legal acts have the highest legal force and their provisions must be taken into account when developing and concluding an international leasing agreement. To achieve this goal, the following tasks will be solved in this chapter:

1. consider the main legal acts governing leasing relations in the Russian Federation;

2. analyze the most significant provisions of the Federal Law “On Financial Lease (Leasing)”;

3. consider the provisions of the UNIDROIT Convention on International Financial Leasing;

4. based on the comparison, draw conclusions about the difference in approaches to regulating leasing relations according to international and domestic regulatory documents.

Currently, civil regulation of leasing in Russia is carried out by several regulations. First of all, this is the UNIDROIT Convention on International Financial Leasing. Russia acceded to the Convention in accordance with Federal Law No. 16-FZ of February 8, 1998 “On the accession of the Russian Federation to the UNIDROIT Convention on International Financial Leasing.” The UNIDROIT Convention entered into force for the Russian Federation

The next legal act regulating leasing relations is the CIS Convention on Interstate Leasing. This Convention was signed on November 25, 1998, but has not yet been ratified by the State Duma.

The Russian Federation has adopted a number of regulatory documents aimed at regulating leasing:

1. Federal Law of February 8, 1998 No. 16-FZ “On the accession of the Russian Federation to the UNIDROIT Convention on International Financial Leasing”;

2. The Civil Code of the Russian Federation – defines a leasing agreement as a type of rental agreement. Special norms of the Civil Code of the Russian Federation on leasing are applied together with general provisions on leases and obligations;

3. Federal Law of October 29, 1998 No. 164-FZ “On Financial Lease (Leasing)” as amended and supplemented in accordance with the Federal Law of January 29, 2002 No. 10-FZ “On Amendments and Additions to the Federal Law “On Leasing” - defines leasing as a form of investment activity; provides a significant number of customs and tax benefits;

4. Federal Law dated February 25, 1999 N 39-FZ “On investment activities in the Russian Federation carried out in the form of capital investments” (as amended on January 2, 2000 N 22-FZ);

5. Federal Law of July 9, 1999 No. 160-FZ “On Foreign Investments in the Russian Federation” (as amended and supplemented on March 21, July 25, 2002, December 8, 2003);

6. Government resolutions and others regulations regulating the use of leasing in certain industries - establish the procedure for providing state guarantees for leasing operations in certain industries.

Questions about the law applicable to international transactions are determined in accordance with Part Three Civil Code: the rights and obligations of the parties to foreign economic transactions are determined by the law of the country chosen by the parties when making the transaction or by virtue of a subsequent agreement. In the absence of an agreement between the parties on the applicable law, the law of the country where the party who is the lessor in the contract is established or has its main place of business is used.

Federal Law No. 164-FZ “On Leasing” defines leasing as “a type of investment activity for the acquisition of property and its transfer on the basis of a leasing agreement to individuals or legal entities for a certain fee, for a certain period and under certain conditions stipulated by the agreement, with the right to redeem the property lessee." In this case, a leasing transaction is defined as “a set of contracts necessary for the implementation of a leasing agreement between the lessor, the lessee and the seller (supplier) of the leased asset.” At the same time, the Law excludes from the possible list of leasing items land plots and other natural objects, as well as property prohibited for free circulation or for which a special circulation procedure has been established. Thus, leasing is interpreted as “one of the forms of investment financing.”

08:03 18.03.2014

While the real sector continues to groan from interest on ruble loans, things are by no means better in leasing. This is understandable. To provide an item for financial lease for Belarusian rubles, you need to get these rubles from somewhere.

Usually Belarusian rubles are taken not from the Baltic, but from Belarusian banks. Leasing companies use the same credit funds as enterprises in the real sector. Of course, if the lessor is a regular client of a Belarusian bank, then the latter will “gladly” give him a 1-2% discount.

But a couple of percent will not make the lot of the lessee any easier. They can generally be hidden by the leasing company’s margin - everyone wants to live. And then at the end the leasing rate will be equal to the loan rate plus 2 or 4% of the leasing company’s margin. Let it be a conditional 42% per annum.

This rate can be found in some leasing companies in Belarus, which are called banking companies.

Let's assume that you are lucky and you find a certain leasing company at a bank that offers you 42% per annum. We take the scales and begin to weigh all the pros and cons.

Leasing for the bravest

Suppose we need to buy a server (such a big, big and very powerful computer) SunFire E2900B, which is offered by Belarusian companies for 1.182 billion rubles including VAT.

For example, we agreed with a leasing company on a 2-year contract and an advance payment of 20%, but here we must remember that the size of this payment can be 25 or even 30%. How do you agree?

We pay the lessor 236.5 million rubles at a time, and then make monthly differentiated payments. In the first month we will pay 78.6 million, the last leasing payment, in two years - only 41 million. But that’s not all.

Classically, the redemption payment will remain 1% of the cost of the equipment - 11.82 million Belarusian rubles.

As a result, after 24 months, the server will become your full property. What will we have as a result, besides outdated computer hardware? The equipment will cost 1.684 billion. The overpayment will be 502 million rubles with a tail, or 42.5%. Go ahead.

Will pseudo-dollars save the world?

If we convert the cost of our SunFire E2900B server into dollars, it will be 121 thousand. The conditions remain the same as for leasing in rubles: 20% advance, 1% residual value, differentiated repayment system. But…

The overpayment will be 25 thousand pseudo-dollars, or 20.2%.

It doesn’t take a financial genius to understand that comparing the 42.5 and 20.2% increase in the cost of a server, a combine, or a molecular meat grinder is pointless. Although leasing offers in Belarusian rubles exist.

If you call a leasing company and insist on leasing in Belarusian rubles, they are unlikely to argue with you. The client's desire is the law. And the equipment will be leased to you.

Only devaluation will help us

What are the arguments in favor of ruble leasing?

Oddly enough, this is an opportunity for the same notorious spasmodic devaluation. Everyday calculation is simple. You take a server worth 121 thousand dollars in February 2014. The price of the equipment in Belarusian rubles is 1.182 billion and is fixed in the contract.

If at the beginning of July this year the Belarusian ruble exchange rate suddenly depreciates by 250%, you will find yourself in the same financial conditions as the company that leased the same server for pseudo-dollars.

If the Belarusian ruble exchange rate behaves the same as in 2011, you will even benefit. But who said that you can enter the same water twice?

Two of the lessee's worst nightmares

True, in all this seemingly simple everyday scheme there are several subtle places.

Read the text of the leasing agreement carefully. If the lessor took out a bank loan at a floating interest rate, this will certainly be reflected in your agreement. The leasing rate, since you still decide to lease in Belarusian rubles, should be fixed.

Let's explain a little. The rate will be fixed if the text of the document states in black and white: “The rate is 42%. And cannot change in the future."

When the agreement is decorated with the phrases: “The rate is equal to 1.79 of the refinancing rate” or “The leasing rate in the first month is 42%, and in subsequent months it is formed by agreement of the parties,” it is better not to waste the ink in your pen on signing such a paper. Then you will have to regret it.

But the horror stories for the lessee do not end there. If, after all, you have signed a contract with a fixed rate, you should not relax. The bank that issued the loan to the leasing company may well ask it to move a little, by 5 - 10%.

“Listen, cousin is the lessor. As a financier - to a financier. Times are tough now, it is prohibited to issue loans, the population does not bear deposits. Let us raise your loan rate by 7%, like that toy factory that went bankrupt the day before yesterday.”

After such words, there is usually a game of nerves: who will win... And if the leasing company raises its paws up, then it lowers them down and dials your phone number: “Hello. Times are tough now..."

However, we admit that this is a completely extreme case. Force Majeure.

The bisector that destroys hopes

Let's return to those lucky ones who, unlike us, entered into a leasing agreement in pseudo-currency.

Let us remind you that a transaction in pseudo-dollars implies that all payments will be made in Belarusian rubles at the rate of the National Bank on the day of payment. This is where the wormhole lies.

Many experts note that devaluation is already underway in Belarus. And it is called a smooth devaluation. If you look closely at the growth of the dollar, then, obeying some magic wand, no less than Harry Potter, is growing with enviable pedantry, by 10 rubles per day the exchange is open. Let's see what happens to the dollar exchange rate with such an “exchange” acceleration in 24 months.

The resulting “bisector” indicates that if events continue to develop as they have for the last six months, in February 2016 the dollar exchange rate will come close to the 15 thousand mark or will increase by 53%.

With this development of events, legal entities that leased the SunFire E2900B server for pseudo-dollars will pay approximately 1.7 billion Belarusian rubles. We will omit complex multi-page calculations. But if we do not discard errors with exchange rate differences, then the size of leasing payments is the same as in the case of leasing in Belarusian rubles.

And it turns out the same collection of antlers on the wall. Only a profile view.

Therefore, both supporters of transactions in Belarusian rubles and supporters of transactions in pseudo-currencies should once again remember that leasing is beneficial not by the size of the rate (although it also matters), but by the possibilities of depreciation and tax benefits.

While writing the article, approximate mathematical models were used that do not take into account certain nuances, such as the need for insurance, possible changes in legislation, bankruptcy of the bank that issued the loan to the leasing company, and the presence of a leap year. However, all these factors are also not taken into account by leasing companies when drawing up payment schedules that they offer to their clients for consideration.

All economic forecasts made in the article are not fully forecasts, since they are used to model situations that may occur with some probability or may not occur at all.

Leasing

This is a type of investment activity in which the lessor (leasing company) purchases property from the supplier and then leases it for a certain fee, for a certain period and under certain conditions.

Lessor

Physical or entity, which, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee....

Lessee

An individual or legal entity who, in accordance with the leasing agreement, is obliged to accept the leased asset for temporary possession and use in accordance with the leasing agreement.

Subject of leasing

Any non-consumable things, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and immovable property. To consumable things in the legal sense...

Leasing agreement

An agreement under which the lessor undertakes to acquire ownership of the property specified by the lessee from a seller specified by him and to provide this property to the lessee for a fee for a temporary...

Lessor's costs

Costs and expenses of the lessor associated with the acquisition and use of the leased asset by the lessee.

Leasing rate

The rate included in the lease payment schedule as the loan rate. The leasing rate includes the bank's borrowing rate and the company's leasing margin or the amount of pledged (calculated) profit of the leasing company

Internal leasing

A type of leasing in which the lessor or lessee is a resident of the Russian Federation.

Leasinginternational

A type of leasing in which the lessor or lessee is a non-resident of the Russian Federation.

Returnable leasing

A type of financial leasing in which the seller (supplier) of the leased asset simultaneously acts as a lessee.

Financial leasing

The most common type of leasing. This is a type of leasing in which the lessor, on behalf of the lessee, undertakes to acquire ownership of the property specified by the lessee from a specific seller and transfer it to the lessee

Leasing portfolio

The total amount of lease payments receivable, including VAT, under existing lease agreements.

Redemption value(redemption payment)

The cost at which the leased asset becomes the property of the Lessee, determined by the leasing agreement. The purchase price under the agreement can be fixed in the leasing agreement:

upon early redemption...

Percentage increase in price

The difference in percentage between the amount of all payments under the leasing agreement and the cost of the leased asset.

Full percentage increase in price per year

The ratio of the increase in price of the leased asset, reduced to the annual rate, taking into account the term of the leasing agreement.

Leasing margin

The leasing company's margin or the leasing company's income in excess of interest on bank loans raised to finance the leasing transaction. The margin can be calculated similarly to bank interest on the outstanding loan balance....

Lessor's income

The amount received by the leasing company under a leasing transaction after deducting all the lessor's expenses.

Volume of new business

The total amount of lease payments, including VAT, under lease agreements concluded during the period under review, for which the earlier of two events is (1) the purchase of equipment for leasing under the agreement...

Lease payments receivable

The total amount of lease payments, including VAT, under the lease agreement, the payment period of which has not yet arrived, and overdue lease payments.

Settlement date (payment date)

The calendar date, which is indicated in the Lease Payment Schedule for each Lease payment, as the period no later than which it must be paid.

Lease payment for tax purposes

A lease payment for tax purposes is considered to be a payment made after the transfer of property on lease and consisting of the current payment under the agreement and offset of the previously made advance payment(s) (or his/their...

Leasing payments

The total amount of payments under the leasing agreement for the entire term of the leasing agreement, which includes reimbursement of the lessor's costs associated with the acquisition and transfer of the leased asset to the lessee, reimbursement of costs associated...

NIL

Based on the accounting features, volume indicators in IFRS for a leasing transaction are accounted for as Net Investment Lease NIL (net investment in leasing).

Cost of the leasing agreement (price of the leasing agreement)

The sum of all lease payments and the redemption value of the leased asset.

Advance payment (advance payment)

Payment or payments made by the lessee before the leased asset is transferred to the lease.

Subleasing

A special type of relationship that arises in connection with the assignment of rights to use the leased asset to a third party, which is formalized in a subleasing agreement. When subleasing, the person carrying out subleasing accepts the leased asset from the lessor under an agreement...

Orphans Trust

Used in international aircraft leasing transactions.

Bareboat charter

This is a contract for chartering a vessel without a crew.

Franchise

A certain part of the insured's losses that is not subject to compensation by the insurer in accordance with the terms of the insurance contract. There is a difference between conditional and unconditional franchises. With a conditional deductible, the insurer is released from liability...

Insurer

Legal entity of any organizational and legal form, provided for by law Russian Federation, created to carry out insurance activities (insurance organizations and mutual insurance societies) and received a license to carry out...

Insurance case

An accomplished event provided for by an insurance contract or law, upon the occurrence of which the insurer becomes obligated to make insurance payment to the policyholder, insured person, beneficiary or other third parties.

Insurance risk

A probable event or set of events against which insurance is provided.

Insurance compensation

The amount paid by the insurer to the policyholder (beneficiary, third parties) to compensate for losses caused by the occurrence of an insured event provided for in the insurance contract.

Sum insured

The amount of money determined by the insurance contract or established by law, on the basis of which the amounts of the insurance premium and insurance payment are established, if the insurance contract or legislative acts RF is not provided...

Insurance premium

Insurance fee

Beneficiary

The person in whose favor the insurance contract is concluded.

Bank guarantee for return of advance payments

A guarantee issued by a guarantor bank for the fulfillment by a client or other person of monetary or other obligations. In case of failure to fulfill these obligations, the bank that issued the guarantee is liable for the debts of the borrower to the extent...

Post-financing

A financing scheme used in transactions involving the import of property and the use of a letter of credit payment scheme under a contract. When using this scheme, the bank of the country of the property exporter (or a first-class international bank) pays...

Commissions (Premium) ECA

The cost of an export loan consists of several components. The rate for raising funds on world markets (LIBOR) is taken as the basis for financing.

ECA - Export Credit Agency

Export credit agencies are either government agencies in the country concerned, which have been established for the purpose of providing export support, or private sector companies that provide government support

Leasing company loan portfolio

The amount of loan debt under attraction agreements Money for the acquisition of leased items.

Accelerated depreciation

The target method of faster, in comparison with the standard service life of fixed assets, the complete transfer of their book value to production and distribution costs.

Billing period

The frequency of payment of lease payments established by the leasing agreement. Usually a month. There are sometimes quarterly payments.

Leasing broker

A company that is not directly involved in providing property, but acts as an intermediary between the supplier, lessor and lessee for an appropriate fee.

The volume of new business in January–September 2017 amounted to about 710 billion rubles, which is 58% higher than the same period last year (see Chart 1). It is worth noting that in the third quarter of this year, the value of property leased/rented reached 285 billion rubles, which is 63% higher than the results of July–September last year. According to a survey of leasing companies, an increase in the volume of leasing business for 9 months of 2017 was shown by two-thirds of respondents, who together account for more than 90% of the market in terms of leasing business volume. At the same time, not a single lessor from the top 20 was characterized by negative dynamics in the volume of new business. The reason for such active market growth was the implementation of government programs to subsidize leasing/rental individual species transport against the backdrop of the realization of pent-up demand from customers. The government's preferential leasing programs provided support, first of all, to the transport segments, whose share in the volume of new business reached about 78% in the first 9 months of 2017, compared to 72% a year earlier.

It is worth noting that due to state programs to subsidize leasing/rental, primarily of domestic aircraft and vehicles, the market grew by 160 billion rubles, which is about 23% of new business. Thus, the growth of the leasing market without taking into account government support programs, according to our estimates, would be about 53%.

Confirmation that the leasing market has moved from recovery to growth is not only the positive dynamics of the volume of new business, but also the fact that for the first time since pre-crisis 2013, the number of employees of leasing companies began to grow. According to RAEX (Expert RA) estimates, based on the results of the survey, as of October 1, 2017, the number of personnel of leasing companies is at least 11,300 people, which is 15% more than a year earlier (see Chart 2).

Sum new treaties leasing for January - September 2017 amounted to more than 1.1 trillion rubles compared to 680 billion rubles a year earlier, and the volume of the leasing portfolio as of 10/01/2017 reached 3.3 trillion rubles (see table 1). The volume of payments received in the three quarters of 2017 amounted to 680 billion rubles, which is slightly more than last year. The average ratio of lease payments received to the portfolio as of 10/01/2017 was 43% versus 44.2% as of 10/01/2016. The average portfolio turnover of companies specializing in the retail segment remained at the level of last year (about 46–47%), however, for lessors working with large and expensive equipment, this figure decreased from 30 to 23%. The reason for the decline in this level was the active increase in operational leasing transactions in the last two years, in which lease payments are distributed unevenly, and the bulk of the debt falls on the end of the contractual terms. In addition, a number of large players had problematic clients in their portfolio, whose non-payments led to a drop in the flow of leasing payments. In this regard, during 2016–2017, contracts with problem clients were terminated, which led to a short-term drawdown in the portfolio size of individual leasing companies.

Table 1. Leasing market development indicators

Indicators	9 months 2014	2014	9 months 2015	2015	9 months 2016	2016	9 months 2017
Volume of new business (property value), billion rubles.	522	680	385	545	450	742	710
	-10,4	-13,2	-26,2	-19,9	16,9	36,1	57,8
Amount of new leasing agreements, billion rubles.	754	1 000	590	830	680	1150	1 140
Growth rate (period by period), %	-19,8	-23,1	-21,8	-17	15,3	38,6	67,6
Concentration on the top 10 companies in the amount of new contracts, %	61	66	68	66	62	62	68
Retail index, % 1	45	44	45	44	50	45	48
Volume of lease payments received, billion rubles.	550	690	465	750	670	790	680
Volume of funds financed, billion rubles.	505	660	400	590	550	740	635
Total portfolio of leasing companies, billion rubles.	2 950	3 200	2 950	3 100	2 900	3 200	3 300
Russia's GDP (in current prices, according to Rosstat), billion rubles.	57 277	79 200	60 393	83 233	61 967	86 044	64 912,3
Share of leasing in GDP, %	0,9	0,9	0,6	0,7	0,7	0,9	1,1

Source:

The retail index, calculated as the sum of the shares of retail segments, in the volume of new business decreased from 50% in January–September 2016 to 48% compared to the same period of the current year. The reduction in the index was due to a significant increase in the volume of new business in large segments, which led to an increase in the average amount of a leasing agreement from 6.2 million rubles to 8.8 million rubles. At the same time, the number of leasing agreements concluded during 9 months of 2017, according to agency estimates, was at least 130 thousand (see Chart 3).

The volume of financed funds for 9 months of 2017 increased by 15% compared to the same period last year. In addition to the increase in the volume of funding sources, structural changes have occurred. Thus, during the period under review, the share of bank loans in the structure of financed funds decreased by 4 percentage points, to 56.6%, however, loans still remain a key source of financing leasing transactions. During the first 9 months of 2017, it is noted that lessors began to rely more on advance payments, the share of which is 14.4% (+2.2 percentage points compared to the same period last year), and the share of own funds, on the contrary , decreased by 2.5 percentage points, to 10.6%. The share of bonds in the structure of financed funds reached 10.5%; it is worth considering that this level is largely provided by the company "GTLK", which actively uses bond issues to finance the leasing business. Without taking into account STLC, the share of bonds in sources of financing leasing transactions for 9 months of 2017 would have been 4.3%, which slightly exceeds last year’s level (see Chart 4).

According to a survey of leasing companies, average level The margin of leasing business 2 at the end of 9 months of 2017 was 4.3%, which corresponds to the level of 2014. The return of the margin to the pre-crisis level indicates a decrease in lessors' concerns regarding their clients; leasing companies have begun to include credit risks in the leasing interest to a lesser extent. The highest margins were shown by companies specializing in construction equipment, passenger cars and trucks (the maximum margin reaches 14%). The lowest difference between the cost of attracted and placed funds (about 1.5–2%) is typical for companies working with leasing of railway and aircraft equipment. The profit margin of the business of lessors whose owners are foreign owners has fallen over the past three years by 2.3 percentage points, to 3%. As a rule, lessors under foreign structures work with imported equipment, which has become significantly more expensive due to the devaluation of the ruble, which forced leasing companies to reduce their margins in order to maintain their customer base. It is worth noting the increase in the margin of leasing companies with Russian banks (+1.4 percentage points, up to 4.6%), which is largely due to the lag in the revision of the leasing interest rate after the reduction in rates on attracted loans to the leasing company. Therefore, the reduction in the Bank of Russia rate has not yet fully affected the cost of leasing.

Dynamics and structure of operational leasing

In January–September 2017, the volume of operational leasing amounted to about 147 billion rubles, which is 263% more than the results of the same period last year. In addition, the volume of operating leasing achieved in 9 months of the current year is the highest in history Russian market leasing In general, based on the results of the first three quarters of 2017, rental accounted for about 21% of the volume of new business versus 12% a year earlier (see Chart 6). The share of rentals in the leasing portfolio also increased significantly to 17.4% as of 10/01/2017 against 5.3% as of 10/01/2016.

The concentration on leaders in the new operational leasing business is much higher than in financial leasing: for example, the top 3 lessors account for 72% of the market (see Table 2), while the share of three largest companies in financial leasing is 37%. The high level of market concentration on a limited range of leasing companies is associated with the specifics of operating leasing, which is more in demand by large clients. This type leasing is in demand corporate clients, as it allows for more flexible management of the transport fleet in conditions of instability and does not oblige you to purchase the property at the end of the contract.

Table 2. Top 10 leaders in terms of operational leasing volume

№	Company name	New business for operational leasing / rent for 9 months. 2017, million rubles	Share of operational leasing in new LC business, %	Company share in the operational leasing market, %
1	"SBERBANK LEASING" (GC)	55 536	54,5	37,8
2	"VEB-leasing"	25 677	45,5	17,5
3	State transport leasing company	24 810	27,4	16,9
4	"TransFin-M"	14 269	58,9	9,7
5	"RAIL1520" (GK)	7 841	100	5,3
6	"Transleasing service"	6 065	100	4,1
7	"Major Leasing"	1 356	18,0	0,9
8	Gazprombank Leasing (GC)	1 055	4,8	0,7
9	"Option-TM"	582	59,2	0,4
10	"KAMAZ-LEASING" (GK)	329	6,3	0,2

Source: RAEX (RA Expert), based on the results of the LC survey

The operating leasing segment based on the results of 9 months of 2017 is mainly formed by railway and aircraft equipment; these segments together account for about 97% of all leases (see Chart 7). Aircraft operating leasing in 2017 was primarily supported by government subsidies for lease payments. “Without government support to subsidize the rental of domestic aircraft, regional aviation will not be viable. All over the world it is, one way or another, supported by the state. Another question is what measures state support should not relax manufacturers, who should strive to reduce costs,” notes Vladimir Dobrovolsky, Deputy General Director for Customer Relations of PJSC State Transport Leasing Company.

In an operating lease, the use of the leased asset is limited to the term of the contract, which allows the lessee to quickly replace the equipment in the event of its obsolescence. In addition, a decrease in interest rates due to a revision of the Bank of Russia key rate will help increase the attractiveness of operating leasing. “As the interest rate decreases, the efficiency of leasing increases, since the interest burden on the entire investment decreases,” notes Kirill Tsarev, CEO JSC Sberbank Leasing. – In operational leasing, due to the large balloon payment, the percentage influences more significantly than in financial leasing. And the lower the interest, the more competitive the operating leasing offer becomes.”

Market leaders

Based on the results of 9 months of 2017, the market leader was Sberbank Leasing JSC, which increased the volume of new business by 163%; a year earlier, the company was in third place in the ranking. The second place in terms of the volume of new business in the leasing market is held by PJSC State Transport Leasing Company, and the third position in the ranking is occupied by VTB Leasing. As before, there is a high concentration of the market on the largest lessors, which continues to grow. Thus, based on the results of three quarters of 2017, the top 3 leasing companies account for about 37% of new business (35% a year earlier). It is worth noting that the business of the three largest players forms 88% of the aviation segment, 38% of railway leasing and a quarter of the truck leasing market. The share of the top 10 in the volume of new business in January–September of this year increased from 64 to 67%, and the 20 largest lessors already accounted for 80% versus 78% a year earlier.

Table. Top 20 market leaders based on the results of 9 months of 2017

Place for new business		Company name	Credit rating RAEX (Expert RA) as of 12/06/2017	Volume of new business (property value) for 9 months. 2017, million rubles	New business growth rate 9 months. 2017 / 9 months 2016, %	Amount of new leasing agreements for 9 months. 2017, million rubles	Volume of the leasing portfolio as of 10/01/17, million rubles.
01.10.2017	01.10.2016
1	3	"SBERBANK LEASING" (GC)		101 980	163	132 174	397 241
2	2	State transport leasing company		90 492	55	180 070	490 797
3	1	"VTB Leasing"		67 377	7	104 295	394 295
4	4	"VEB-leasing"		56 393	115	82 488	344 620
5	5	"LK Europlan"	ruA	42 087	63	n. d.	52 552
6	7