GRENKELEASING AG / Miscellaneous 02.04.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - New business of the GRENKE Group reaches EUR 119 million in the first quarter 2009. Contribution margin 2 of new business of the GRENKE Group reaches EUR 20 million in the first quarter 2009 and, therefore, an all-time high - Ideal balancing of liquidity, profitability and risk profile achieved Baden-Baden, April 02, 2009: As already communicated, we are managing the Group in accordance with current developments on the markets and are focusing in particular on growing our contribution margin (CM) and controlling new business in line with profitability criteria. In view of the substantially deteriorated economic outlook since the beginning of the year, top priority has been assigned at present to the profitability of new business along with securing liquidity and strengthening of our balance-sheet. Accordingly, we have actively reduced new business; in return, we achieved new all-time highs both in CM1 (CM1 margin of 13.7 %) and CM2 (CM2 margin of 19.0 %) in relation to the volume of new leasing business in the first quarter of 2009. The lower volume of new business of the GRENKE Group (incl. franchise partners) - i.e. the sum total of acquisition costs of newly purchased leasing assets and factoring volume - in the first quarter of 2009 amounting to EUR 118.6 million (Q1-2008: EUR 132 million) will have a positive impact on the liquidity situation and the Group's equity capital ratios. Moreover, thanks to targeted management measures, we succeeded in reducing the average anticipated credit risk in new business significantly in relation to the previous years quarter. CM2 growth of more than 10%, in combination with a considerably reduced risk profile and lower liquidity consumption represents an ideal outcome in the present economic conditions overall. In this respect, apart from management of new business along high contribution margins, the declining intensity of competition and lower interest rates are generating positive impacts. The international segment contributed a share of 45.7 % to the new business of the GRENKE Group (previous year: 47.4 %). The considerable expansion in CM 2 with an increase of 21.3 % also reflects the highly positive trend in profitability abroad. New business volumes in EUR million Q1-2009 Q1-2008 % change GRENKE Group including franchise partners 118.6 132.0 -10.2 - of which: Germany 64.3 69.4 -7.3 - of which: International 54.2 62.6 -13.3 GRENKE Group leasing business* 104.5 120.2 -13.1 Franchise partners 24.3 18.0 34.9 - of which Factoring business (Germany) 14.0 11.8 19.5 * excl. factoring New business from leasing by foreign markets in EUR million Q1-2009 Q1-2008 % change France 21.2 31.2 -32.1 Switzerland 3.3 4.0 -16.4 Italy 4.7 6.4 -26.1 Spain (incl. franchise Madrid) 3.4 4.1 -16.4 United Kingdom 2.5 4.0 -36.9 Poland 2.9 2.6 10.2 Netherlands 2.7 2.4 14.4The CM1 margin of the GRENKE Group's leasing operations (contribution margin 1 at acquisition values), at 13.7 % in the first quarter of 2009, substantially exceeded our target margin of 10% and the margin of the previous quarters, reaching a value of EUR 14.3 million (Q1-2008: EUR 14.0 million - comparative figure for leasing operations). The corresponding CM2 amounts to EUR 19.9 million, likewise up by a gratifying 12.8% year-on-year (Q1-2008: EUR 17.6 million). As a result, measured according to CM2 we succeeded in concluding highly profitable new leasing business in the first quarter of 2009 in spite of increased refinancing costs. Development of contribution margin 2 (CM2) in EUR million Q1-2009 Q1-2008 % change GRENKE Group including franchise partners 20.0 17.7 12.9 - of which: Germany 8.9 8.6 3.8 - of which: International 11.1 9.2 21.3 GRENKE Group leasing business* 19.9 17.6 12.8 Franchise business 2.0 1.1 84.7 France 4.8 4.4 9.1 Switzerland 0.7 0.8 -16.5 Italy 0.7 0.8 -6.1 Spain (incl. franchise Madrid) 0.6 0.6 2.4 United Kingdom 0.5 0.6 -9.7 Poland 0.4 0.3 20.2 Netherlands 0.6 0.4 49.2 * exkl. Factoring The profit margin in relation to the factoring volume of EUR 14.0 million amounted to 1.8 % (Q1-2008: 2.1 %). This margin relates to the average period of a factoring transaction, amounting to approx. 26 days (Q1-2008: approx 30 days). The reduction in the factoring margin is essentially related to the reduction of the average period and has no impact on profitability. In the first quarter of 2009 GRENKE Group recorded a total of 36,353 leasing inquiries (ex Germany 21,366) and of which 14,239 new leasing contracts (ex Germany 7,504) were generated. The average value per contract concluded came to approx. EUR 7,341 and is nearly unchanged compared to the previous year (Q1-2008: EUR 7,530 - comparative figure adjusted accordingly). 'In view of the ongoing significant deterioration of macroeconomic activity and the increasingly uncertain economic forecasts, we are optimising our margin and risk structure and are deliberately foregoing new business volumes. In the process, we are also keeping an eye on liquidity management in view of conditions prevailing on the refinancing markets and the maturity of the bond in April 2009. As in the past, the aim of our management is to achieve a sustained, high return on equity on a simultaneously solid level of equity capital.' explained Dr. Uwe Hack, Deputy Chairman of the Executive Board of GRENKELEASING AG. He added: 'In view of the development of our contribution margins, we are well prepared for the difficult overall economic phase that lies ahead, and we are highly satisfied with the balance we have achieved in terms of volume, margins and risk profile. This has also laid the foundations for further substantial growth as soon as the general economic trends become more transparent. In Poland, we executed a cell division; after opening a branch office in Warsaw, we are now represented at two locations. Moreover, in acquiring the Hesse Newman Bank in February, we took an important step to extend our business activities and diversify our refinancing sources even further.' 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 nine branches in France, three in Switzerland and three in Italy, two in Poland, the enterprise operates with subsidiaries in Austria, Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland, United Kingdom 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 company will publish its detailed Quarterly Financial Report as per March 31, 2009 on April 30, 2009. Should you have any queries, please contact: Renate Hauss Tel.: 0049-7221/5007-204 Fax: 0049-7221/5007-112 Email: investor@grenke.de Internet: htthttp://www.grenke.de DGAP 02.04.2009 --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------
DGAP-News: GRENKELEASING AG:New Business in first quarter 2009
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