26  Leases

26.1  Leases as Lessee

The Group leases office buildings, cars and office equipment. The leases typically run for a period of four to five years for cars, five to 15 years for buildings and five years for office equipment. Lease payments are indexed depending on the contracts: for cars usually once a year; and for buildings after three 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.

26.1.1  Right-of-use-assets

25.1.2  Amounts recognized in profit or loss

26.1.3  Amounts recognized in the statement of cash flows

26.1.4  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 September 30, 2024, the Group has determined based on a business decision that three of the extension options will be exercised, which resulted in an increase of lease liabilities of EUR 3,185 (September 30, 2023: three of the extension options will be exercised, which resulted in an increase of lease liabilities of EUR 398).

26.2  Leases as Lessor

The Group leases out some of its leased buildings. The majority of the sub-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.

Operational lease income recognized by the Group during 2023/2024 amounted to EUR 1,170 (2022/2023: EUR 908).

The following table sets out a maturity analysis of operational lease receivables, showing the undiscounted lease payments to be received after the reporting date.

One of the sub-leases classifies as financial lease and is included in the balance sheet as other financial assets amounting to EUR 3,619  (September 30, 2023: EUR 3,788). The annual lease payments amount to EUR 356 (September 30, 2023: EUR 345) for the remainder of the lease term (till 2035).

The following table sets out a maturity analysis of financial lease receivables, showing the undiscounted lease payments to be received after the reporting date.

During 2023/2024, the Group recognized interest income on lease receivables of EUR 70 (2022/2023: EUR 73).