25.1 Leases as Lessee
The Group leases office buildings, cars and office equipment. The leases typically run for a period of 5 years for cars, 5-15 years for buildings and 5 years for office equipment. Lease payments are indexed depending on the contracts: for cars usually once a year; and for buildings after 3 years upon contract start date to reflect market rentals. For certain leases, the Group is restricted from entering into sub-lease arrangements.
Information about leases for which the Group is a lessee is presented below.
25.1.1 Right-of-use-assets
EUR 000 | Cars | Buildings | Office equipment | Total |
2020/2021 | ||||
Balance at 30 September 2020 | 37,376 | 109,312 | 409 | 147,097 |
Depreciation charge for the year | -16,625 | -13,331 | -91 | -30,047 |
Additions to right-of-use assets | 20,255 | 1,829 | – | 22,084 |
Disposals | -2,167 | – | – | -2,167 |
Balance at 30 September 2021 | 38,839 | 97,810 | 318 | 136,967 |
2019/2020 | ||||
Balance at 30 September 2019 | 31,317 | 116,506 | 82 | 147,905 |
Depreciation charge for the year | -16,724 | -15,071 | -128 | -31,923 |
Additions to right-of-use assets | 23,086 | 7,877 | 455 | 32,678 |
Disposals | -1,564 | – | – | -1,564 |
Balance at 30 September 2020 | 37,376 | 109,312 | 409 | 147,097 |
25.1.2 Amounts recognised in profit or loss
EUR 000 | 2020/2021 | 2019/2020 |
Interest on lease liabilities | -2,112 | -1,183 |
Income from sub-leasing right-of-use assets presented in ‘Other Income’ | 2,346 | 2,445 |
25.1.3 Amounts recognised in the statement of cash flows
EUR 000 | 2020/2021 | 2019/2020 |
Total cash outflow for leases | 29,005 | 36,413 |
25.1.4 Extension options
Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at the lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control.
As at 30 September 2021, the Group has determined based on a business decision that 1 of the extension options will be exercised, which resulted in an increase of lease liabilities of EUR 1,129.
25.2 Leases as Lessor
The Group leases out some of its leased buildings. All leases are classified as operating leases from a lessor perspective, as they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Rental income recognised by the Group during 2020/2021 amounted to EUR 2,346 (2019/2020: EUR 2,445).