GRENKELEASING AG / Miscellaneous
06.04.2010 07:59
Dissemination of a Corporate News, transmitted by
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- Return to growth path confirmed in the first quarter of 2010
- Resumption of expansion strategy
- New business in the GRENKE Group amounts to EUR 150.1 million in the
first quarter of 2010. Contribution margin (CM) 2 on new business in
the GRENKE Group reaches EUR 23.3 million in the first quarter of 2010
and, with a CM2 level of 16.2 % (leasing business), remains very high
Baden-Baden, April 6, 2010: In the first quarter of 2010, the volume of new
business in the GRENKE Group (incl. franchise partners) - i.e. the sum
total of acquisition costs of newly acquired leasing assets and the
factoring volume - amounted to EUR 150.1 million (Q1-2009: EUR 118.6
million), corresponding to 26.6 % growth. As can be seen, we have again
focused our group management on the growth of new business. We intend to
pursue this strategy further during 2010 - not least because the conditions
of the refinancing markets in general have improved significantly and our
strategy of a strong balance sheet and a diversified funding source has
proven itself. We are also assuming that the loss ratio has peaked and will
remain for full year 2010 at the 2009 level.
During the first quarter of 2010, we implemented the policy shift within
our business strategy in the direction of volume growth - with CM1 and CM2
margins continuing to be above-average - in almost every market - however
without neglecting our strict risk considerations in individual markets. As
a result, the new business volume exceeds not only the previous year's
quarter by 26.6 % but also considerably the first quarter of the pre crisis
year 2008.
In line with the trend which was already visible in the fourth quarter of
2009, we recorded significant volume growth in our international markets
for the first quarter of 2010. The international segment contributed a
share of 58.3 % to the GRENKE Group's new business (previous year: 45.7 %).
That the growth is not achieved at the expense of profitability is shown by
the fact that we achieved a 38.5 % increase in CM2. We achieved especially
positive growth rates in Italy and the United Kingdom. However, also the
German leasing business had a good start, growing at 10.3 %, while we did
not want to push the new factoring business. In total the German business
is therefore slightly below the previous year.
In the first quarter of 2010, GRENKE Group recorded a total of 48,968
leasing inquiries (ex Germany 33,250) on the basis of which 19,320 new
leasing contracts (ex Germany 12,599) were generated. The average value per
leasing contract concluded came to approx. EUR 7,404 and is almost
unchanged to the previous-year figure (Q1-2009: EUR 7,341).
The sharp increase in inquiry numbers demonstrates that the demand for
leasing is growing strongly and that we gain market-share especially in our
international markets. In the first quarter of 2010, we received 34.7 %
more inquiries than in the same period a year earlier. Outside Germany,
this trend is even more pronounced, with a 55.6 % increase in inquiries
year-on-year.
The conversion rate (inquiries to contracts) was 39 % in the first quarter
of 2010 and remains below our target level due amongst others to the
increased share of our international markets. The conversion rate in our
international markets is usually lower than the conversion rate for the
group as a whole, because we are less well known in newer markets and we
continue with our cautious risk policy in some international markets.
In fiscal year 2010, we plan to resume our usual expansion strategy in
Europe in order to grow our business by developing new franchise partners
and cell divisions at foreign locations. In January 2010 we already opened
a new location in Belfast, UK, and concluded a contract with a new
franchise partner in Luxembourg. In Italy, we intend to carry out another
cell division in April and, after opening a branch in Verona, we will now
be represented in four locations. This active start to the year
demonstrates that we will use the current opportunities to position
ourselves in our international markets.
New business volumes in EUR million
|[![CDATA[|[pre|]]]|]
Q1-2010 Q1-2009 % change
GRENKE Group including franchise partners 150.1 118.6 26.6
- of which: Germany 62.5 64.3 -2.8
- of which: International 87.6 54.2 61.5
GRENKE Group leasing business* 143.0 104.5 36.8
Franchise business** 13.0 10.3 26.2
Factoring business (Germany) 7.1 14.0 -49.4
Deposits GRENKE BANK 132.7 56.7 134.0
|[![CDATA[|[/pre|]]]|]
*Not including factoring
** New business from factoring is no longer included in the franchise
partner volume as we acquired the franchise partner in August 2009. The
figures were restated for the year 2009 as a whole.
New business from leasing by international markets in EUR million
|[![CDATA[|[pre|]]]|]
Q1-2010 Q1-2009 % change
France 34.7 21.2 64.1
Switzerland 3.5 3.3 6.5
Italy 12.6 4.7 166.7
Spain (incl. franchise Madrid) 5.1 3.4 47.0
United Kingdom 6.7 2.5 165.3
Poland 2.5 2.9 -15.0
Netherlands 3.7 2.7 35.9
Portugal (franchise partner) 5.7 4.0 42.4
|[![CDATA[|[/pre|]]]|]
The CM1 level of the GRENKE Group's leasing operations (contribution margin
1 at acquisition values), at 11.3 % in the first quarter of 2010,
substantially exceeded our target margin of 10 %, reaching a value of EUR
16.2 million (Q1-2009: EUR 14.3 million - comparative figure for leasing
operations). The corresponding CM2 amounts to EUR 23.1 million, up by 16.4
% year-on-year.
Within the scope of expanding our new business, we eased the CM2
specifications to allow the continuing high levels of demand to be
converted into more new business in accordance with the respective market
conditions. Particularly in Germany, the competitive environment continues
to be intense and we have eased the CM2 specifications with a view to
promoting volume. All in all, with a CM2 level of 16.2 % we are well above
the pre-crisis average.
Development of contribution margin 2 (CM2) in EUR million
|[![CDATA[|[pre|]]]|]
Q1-2010 Q1-2009 % change
GRENKE Group including franchise partners 23.3 20.0 16.3
- of which: Germany 7.9 8.9 -11.5
- of which: International 15.4 11.1 38.5
GRENKE Group leasing business* 23.1 19.9 16.4
Franchise business** 2.2 1.8 17.5
France 6.3 4.8 30.7
Switzerland 0.7 0.7 9.5
Italy 1.8 0.7 146.5
Spain (incl. franchise Madrid) 0.8 0.6 28.6
United Kingdom 1.3 0.5 134.9
Poland 0.3 0.4 -22.4
Netherlands 0.7 0.6 14.2
Portugal (franchise partner) 1.1 1.0 16.3
|[![CDATA[|[/pre|]]]|]
*Not including factoring
** New business from factoring is no longer included in the franchise
partner volume as we acquired the franchise partner in August 2009. The
figures were restated for the year 2009 as a whole.
The profit margin in relation to the factoring volume of EUR 7.1 million
amounted to 2.3 % (Q1-2009: 1.8 %). This margin relates to the average
period of a factoring transaction, amounting to approx. 24 days (Q1-2009:
approx 25 days).
In the first quarter of 2010, GRENKE BANK AG achieved a deposit volume of
EUR 132.7 million (Q1-2009: EUR 56.7 million). GRENKE BANK in addition to a
further diversification of funding provides us with new opportunities for
expanding our product range in lease financing and in new product areas.
The objective is to provide the existing base of small and medium-sized
customers with all the financial products suitable for online sales and
which can be offered at attractive terms using our IT-based, automated
contract settlement.
In March 2010 we launched a new product in collaboration between NRW.BANK
in Düsseldorf, GRENKELEASING AG and GRENKE BANK AG. Through this
collaboration for the first time, small and medium-sized companies as well
as the self-employed will be able to benefit from supported funding of
North-Rhine Westphalia's development bank in order to finance new
investments via leasing in North-Rhine Westphalia.
We also took a further step in March when GRENKE BANK AG was accredited by
KfW-Mittelstandsbank for its 'KfW-StartGeld' business start-up scheme.
Using the experience obtained with our many years of IT development, an
innovative internet platform was developed to provide people setting up
their own businesses with quick and easy access to 'KfW-StartGeld'. Since
March 1, 2010, people setting up their own businesses in the pilot regions
of Hamburg and Baden-Württemberg have had the opportunity of applying for
'KfW-StartGeld' in conjunction with the business start-up consultancy
partners via GRENKE BANK AG. With its 'KfW-StartGeld' scheme,
KfW-Mittelstandsbank supports people who are setting up their own
businesses, self-employed people and small companies which are no more than
3 years old with a maximum funding of EUR 50,000 per application.
'We are very satisfied with the good start to the first quarter and are
confident of achieving the growth target planned for 2010, i.e. new
business growth of at least 15 %, thus making up for the growth dip in
2009. This growth is made possible thanks to the changed competitive
situation and continuing positive demand together with good contribution
margins and limited risk. Also with regard to funding we hat a good start
to the year. With the placement of an ABS bond at the start of the year and
the issue of a bond in the amount of EUR 75 million in March, we have
repaid an expired bond to the amount of EUR 100 million and are in a
position to finance the growth we aim for. There will be no more
significant maturities of debentures or bonds in 2010.' explained Dr. Uwe
Hack, Deputy Chairman of the Board of Directors of GRENKELEASING AG.
Further information:
'GRENKE BANK enables us to collaborate with development banks such as
NRW.BANK and KfW. Using the NRW.BANK supported funding, we hope to give
more than 2,000 companies and self-employed people in North-Rhine
Westphalia access to supported funds, helping them to avoid the negative
effects of the credit crunch. We are making every effort to obtain the
cooperation of further development banks, in order to promote small and
medium-sized companies in particular, so that these companies can make IT
investments which will secure their futures. With the market launch of
these products, we have taken a further step in GRENKE BANK's development.
Initially, we positioned ourselves very successfully with demand and
fixed-term deposits and per Q1-2010 had achieved a volume of around EUR
132.7 million, mainly from private customers. The combination of the
traditional leasing operations and GRENKE BANK financial products opens up
new growth potential for the GRENKE Group. We aim in particular to develop
products for our existing large customer base in order to make best use of
our low-cost and efficient access to these customers in the GRENKE Group.
This focus will ultimately lead to an expansion of the financing options we
offer to the benefit of our customers.' is how Dr. Uwe Hack describes the
objectives of the GRENKE Group.
On May 4, 2010, the company is to publish the full quarterly financial
report as per March 31, 2010.
The GRENKE Group
The GRENKE Group is a broadly diversified provider of financial services
for small to medium-sized enterprises and for private retail clients.
The GRENKE Group comprises companies which operate in fourteen European
countries, all being part of the consolidated GRENKELEASING corporate
group. In addition the GRENKE Group is represented in seven further
countries in Europe by way of a franchise system. Including its franchise
partners, the GRENKE Group is represented at 20 locations in Germany and a
total of 36 locations internationally.
The range of services offered by the GRENKELEASING Group (not including
franchise partners) covers small-ticket IT leasing and factoring and -
through GRENKE BANK AG - classic online banking services.
GRENKE BANK AG has been part of the GRENKELEASING Group since the beginning
of 2009.
The bank- and vendor-independent GRENKE Group holds a leading market
position in Europe in the field of small-ticket IT leasing for products
such as PCs, notebooks, copiers, printers or software of relatively low
asset value. Its range is rounded off by Car Leasing from one of its
franchise partners.
GRENKELEASING AG is listed on the Prime Standard of the Frankfurt
Securities Exchange and is part of the SDAX.
The shares of GRENKELEASING AG are listed on the SDAX of the Frankfurt
Securities Exchange under the identification code GLJ, ISIN DE0005865901.
Information on the GRENKE Group and its products is available for download
on the Internet, at http://www.grenke.de, http://www.grenkebank.de,
http://www.grenkefactoring.de.
Renate Hauss
Tel.: +49 (0) 7221/5007-204
Fax: + 49 (0) 7221/5007-112
E-mail: investor@grenke.de
Internet http://www.grenke.de; http://www.grenkebank.de,
http://www.grenkefactoring.de
06.04.2010 07:59 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: 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, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-News: GRENKELEASING AG: Good Start to the First Quarter of 2010 - Development of New Business in First Quarter of 2010
| Source: EQS Group AG