Fleet Finance Leasing Company (Fleet Finance LLC, previously known as John Deere Financial LLC and part of Insight Investment Group) has compiled its operational outcomes for the third quarter and the first nine months of 2023.
From January to September, the company's new business volume* reached 4.1 billion rubles, with 2.9 billion rubles generated in the third quarter alone. Over the course of nine months, Fleet Finance signed 378 leasing contracts, including 276 in the third quarter. The company offers leasing services for machinery and equipment in the agro-industrial sector, construction and logging industries, as well as freight transportation.
Fleet Finance, previously operating under the John Deere Financial brand, resumed its financing operations under the new Fleet Finance brand in March 2023. Between February 2022 and March 2023, the company did not engage in any new transactions, focusing solely on supporting its existing clients.
"In late February 2023, Insight Investment Group became a new shareholder of the company. From March onwards, we started making new deals, gradually increasing our new business volume. In the third quarter, both the number of transactions and the volume increased by 2.5 times compared to the second quarter," noted Alexander Karpenko, CEO of Fleet Finance.
Alexey Lyubetsky, Commercial Director of Fleet Finance, commenting on the third quarter results, said: "The growth in most segments is driven by the expansion of trade relations with China. In the road-construction equipment segment, Chinese brands have swiftly taken over from Western manufacturers. The situation in the agricultural machinery segment is slightly more complex — it's challenging to quickly replace certain types of equipment that are highly demanded in the Russian market, such as high-power tractors and complete harvesters. However, we anticipate a recovery in this sector in the fourth quarter."
On February 28, 2023, Insight Investment Group acquired a 100% stake in the leasing company John Deere Financial LLC (Fleet Finance LLC), following advance approval from the Government Commission on Monitoring Foreign Investment.
About Fleet Finance Leasing Company
For over a decade, Fleet Finance has been offering leasing services for machinery and equipment in the agro-industrial, construction, and logging sectors. Sales span across the entire Russian territory. Major agro-industrial conglomerates, timber processing enterprises, and construction firms involved in substantial infrastructure projects are the key clients of Fleet Finance. The company boasts a diverse portfolio with 60% dedicated to the agricultural sector, while the construction and logging sectors share the remaining 40%. Following the company's relaunch, the sales strategy now also targets the freight transport sector.
About Insight Investment Group
Insight Investment Group LLC is a privately-held investment firm that specializes in direct investments and asset management in Russia and the CIS countries. Insight Investment Group encompasses leasing firms such as DeltaLeasing LLC, Fleet Finance LLC, RNL Leasing LLC, in addition to the car rental service RexRent and the Legion II business center located in downtown Moscow.
*The new business metric is determined by the cost of leased items handed over to clients during the specified period, VAT not included.
