DGAP-News: GRENKELEASING AG: Quarterly Financial Report as per September 30, 2008


GRENKELEASING AG / Quarter Results/Quarter Results

27.10.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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•Earnings after taxes amount to EUR 24.9 million 
•Increase in new business of the GRENKE Group by 15.9 % 

Baden-Baden, October 27, 2008: Consolidated earnings before interest and
taxes (EBIT) increased in the first nine months 2008 to EUR 35.3 million
compared to EUR 34.3 million in the first nine months 2007.Consolidated
earnings after taxes of GRENKELEASING AG at EUR 24.9 million remained in
the nine-month period 2008 at the level of the comparable period of 2007
despite the fact that the net profit of the third quarter 2007 benefited
from the positive tax effects of the corporation tax reform in Germany.
Earnings per share respectively unchanged at EUR 1.82.

In the third quarter of 2008, the GRENKELEASING AG Group continued the
positive business performance of the first half-year. Our rapid growth of
the past year and our consistent focus on the profitability of the new
business are now visible in the continued growth of income on our income
statement. We are optimising the speed of our international expansion with
a market penetration as rapid as possible and by ensuring the stability of
income. At the same time, we experienced only a limited negative impact
from the international banking crisis. Overall, net profit before taxes
thus increased by 3.0 % to EUR 35.3 million over the nine-month period of
the current fiscal year. The third quarter posted above-average growth with
an upward move of around 7.1 %.

Overall, we again increased consolidated net interest income after
settlement of claims in both reporting periods. Even including the
currently posted higher settlement of claims, consolidated interest income
rose over the 2008 nine-month period year-on-year by a pleasing 6.9 % and
in the third quarter by 8.1 %.

Rising losses are a normal development in phases of declining overall
economic growth. Accordingly, this has been taken into account in our
pricing and earnings forecasts. In the first nine months of 2008 we are
still below our calculated value which emphasizes our ability to identify
and measure risks correctly.

We have also generated significantly increased earnings contributions from
the insurance and new business. In the third quarter of 2008, the profit
from disposals was below that of the previous year due to fluctuations
typical for the type of business. However, it was slightly above that of
the previous year for the nine months period. Due to the overall rising
income, EBIT was successfully expanded in the third quarter, although we
are driving forward our international expansion with extraordinary speed in
the current fiscal year. Accordingly, some expense items have risen
sharply.

The consulting and audit costs, which had significantly negative impact on
us in the previous year, have gradually decreased over the course of the
current fiscal year as announced, so that they are now below those of the
previous year, even in the nine-month period. Including the financial
result, the EBT in the third quarter and in the nine-month period was
therefore increased.

The tax burden of the third quarter of 2007 was exceptionally low, since
the positive full-year effects from the adjustment of the tax rate in the
context of the reform of the German corporation tax were taken into account
in that quarter. As a result of this basis effect the net profit in the
third quarter of 2008 of EUR 8.6 million remained, below the previous
year’s value of EUR 9.3 million. However, in the nine-month period it was
unchanged against the previous year at EUR 24.9 million. Nevertheless this
has no significance for the assessment of the operating development of the
Group.

As already reported the GRENKE Group’s (incl. franchise partners) volume of
new business - i.e. the sum total of acquisition costs of newly purchased
leasing assets and factoring volume – rose by 15.9 % to EUR 433.8 million
in the first nine months 2008 (9-months 2007: EUR 374.3 million). New
business growth recorded by the GRENKE Group international at 37.8 %
compared with the previous year. The international segment contributed a
share of 47.1 % (9-months 2007: 39.6 %) to the new business of the GRENKE
Group.

The CM1 margin of the GRENKE Group’s leasing operations (contribution
margin 1 at acquisition values), at 10.6 % in the nine months of 2008,
exceeded our target margin of 10%, reaching a value of EUR 41.9 million
(9-months 2007: EUR 34 million – comparative figure for leasing
operations). The CM1 margin achieved and the level of growth year-on-year
reflect quite a positive trend against the background of rising funding
costs.

The corresponding CM2 amounts to EUR 59.6 million, likewise up by a
gratifying 25.0 % year-on-year (9-months 2007: EUR 47.7 million). In
particular, the CM2 trend of foreign operations, with an increase of 52.2
%, shows that the anticipated easing of the competitive situation has
indeed occurred. This is where our focus on contribution margin growth and
management of new business according to profitability aspects has certainly
paid off.

The result was generated by 485 employees, compared with 414 in the nine
months of 2007 (full-time equivalents excluding directors). 66 employees
are active in franchise operations (9-months 2007: 99).

'In the first half of 2008, growth and profitability of the new business of
the GRENKE Group, including franchise partners, was at the upper end of the
guidance range. The positive development continued into the third quarter.
As announced, we took advantage of the noticeably more restrictive bank
lending policies and the observed tendency of some competitors to withdraw
from the small ticket leasing business, thereby easing the overall
competitive situation somewhat. We also intend to continue to make further
use of our growth opportunities in Q4 of 2008. The GRENKELEASING AG Group’s
net profit remained in the nine-month period at the level of the comparable
period of 2007 despite the fact that the profit of the third quarter 2007
benefited from the positive tax effects of the corporation tax reform in
Germany. We profited from the fact that we did not suffer any tangible
direct impact of the international banking crisis during the reporting
period. However, this risk still applies to the future. In addition,
detailed questions relating to the taxation of forfeiting have still not
been clarified, which means that there is still planning uncertainty
regarding our tax rate for the current fiscal year. Taking these risks into
account, we therefore confirm our forecast of a stable and positive
development in net profit for the year within a range of EUR 30.6 million
to EUR 33.0 million. ' says Dr. Uwe Hack, Deputy Chairman of the Executive
Board of GRENKELEASING AG, in commenting on the results.

He added: 'We are properly positioned even for a phase of economic weakness
since in this period leasing financing experiences even high demand. With
our decades of experience in identifying and appropriately considering
risks we are able to secure our earnings power even in such periods. With
our broad presence across what is now twenty European countries, we have
diversified sales markets, which we are able to individually manage
according to their respective development.'

The GRENKE Group (incl. franchise partners) now operates in twenty European
countries.

The GRENKELEASING AG Group (excluding franchise partners) is represented in
20 German cities. In addition to eight branches in France, three in
Switzerland and two in Italy, the enterprise operates with subsidiaries in
Austria, Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland, United
Kingdom, Poland and Belgium.

In the Norway, Hungary, Romania, Spain (Madrid), Portugal, Slovakia and
Finland as well as in Germany in the field of car leasing and factoring,
GRENKELEASING has a franchise system in place.

GRENKELEASING offers contracts predominantly in the field of small-ticket
IT leasing for such products as PCs, notebooks, copiers, printers or
software of a relatively low asset value.

GRENKELEASING AG shares are listed at Frankfurt Stock Exchange (SDAX) with
the code GLJ, ISIN DE0005865901.

Information on the company and its products is available on the Internet
under http://www.grenke.de.

The detailed Quarterly Financial Report as per September 30, 2008 is
available on the internet under www.grenke.de Investor Relations –
Financial Data.

Should you have any queries, please contact:

Renate Hauss
Tel.: 0049-7221/5007-204
Fax: 0049-7221/5007-112
Email: investor@grenke.de
Internet: http://www.grenke.de


DGAP 27.10.2008 
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Language:     English
Issuer:       GRENKELEASING AG
              Neuer Markt 2
              76532 Baden-Baden
              Deutschland
Phone:        +49 (0)7221 50 07-204
Fax:          +49 (0)7221 50 07-112
E-mail:       investor@grenke.de
Internet:     www.grenke.de
ISIN:         DE0005865901
WKN:          586590
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Düsseldorf, Hamburg
End of News                                     DGAP News-Service
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