Leasing - Long term rentals

Leasing is a rental contract through which a natural person or corporate entity has the use of a product (in our case, a machine) in exchange for paying the owner a set monthly rental fee for an agreed period, normally three, four or five years.

The special characteristic of leasing applied to the rental of machinery is that, unlike in the case of a purchase or rental, the monthly fee includes:

• The rental of the machine.
• All the preventive maintenance checks prescribed by the manufacturer.
• The repair of any breakdowns that occur through the use and normal wear and tear of the machine during the contract period.
• All the fees related to the industrial waste management of the machine.
• The replacement of tyres that wear out due to the normal use of the machine.
• Transport of the machine to the usual workplace and collection at the end of the contract.
• Civil liability or all-risk insurance according to the customer's needs.
• The processing of the purchase and its cost.
• The processing and cost of a registration plate for the machine if it needs to be driven on the public highway.

Without prejudice to the agreed rental period, flexible leasing allows our customers (with the agreement of both parties) to incorporate changes in the following aspects of the contract:

• — Replacement of the machine that is the object of the leasing contract with another machine type or model that is better suited to any new needs that arise in respect of daily work tasks.
• — Adjustment of the monthly fee, raising or lowering it, depending on the newly supplied machine.
• — Adjustment of the monthly fee according to the intensity of use of the machine: when so required by customers, we adapt to the work rate of their business (we help them to limit costs or include more work hours, as the case may be).

Flexible leasing is for contracts lasting between 12 and 36 months. It applies to standard machines that form part of our rental fleet. Machines which, due to their characteristics, are highly specific or tailored to a specific case or activity are excluded from flexible leasing contracts.

A leasing agreement with SERVEI, SA for machines from its fleet does not necessarily involve any financial entity.

In all its leasing contracts, SERVEI, SA supplies machines in perfect working condition in accordance with EC regulations and occupational health and safety regulations, with an up-to-date annual safety inspection and certificate.

The rental fleet of SERVEI, SA includes machines of several brands, which allows us to supply the machine that the customer prefers.

In order for customers to obtain an optimum return on their investment, the technical department of SERVEI, SA helps them to choose the most suitable machine from a technical, economic and productivity perspective, taking into account ergonomics and other aspects related to the operation of the machine, with the goal of ensuring its comfortable and safe use.

In the event of a long-term breakdown, SERVEI, SA replaces the machine with an equivalent one until the repair is completed. This helps to limit possible idle time.

Given that in a leasing contract the customer only pays a monthly fee, it is not necessary to make an initial investment to purchase the machine. As such, capital does not become tied up and remains available to invest in the production process.

With a leasing agreement there are no unforeseen costs: the costs related to the use of the machine are fully controlled since they are fixed for the duration of the contract. Not even the annual retail price index is applied.

A leasing operation does not appear on the balance sheet, in the Central Credit Register of the Bank of Spain (CIRBE) or in any other credit registers. There is no asset revaluation making it necessary to apply amortizations. It is simply a rental like any other service typically paid for: electricity, water, gas, etc. All the expenses are included in a single monthly invoice.

100% of leasing fees are considered deductible expenses in the case of both corporate tax and the direct evaluation tax system for business people and professionals.

Once the leasing contract has ended there is no obligation to purchase the machine, unlike in the case of other contracts.