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.
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- 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
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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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DGAP-News: GRENKELEASING AG:New Business in first quarter 2009
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