DGAP-News: GRENKELEASING AG: Excellent new business development in the first nine months of 2014: Growth of 14.9%


DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous
GRENKELEASING AG: Excellent new business development in the first nine
months of 2014: Growth of 14.9%

02.10.2014 / 07:32

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Excellent new business development in the first nine months of 2014: Growth
of 14.9%

  - GRENKE Group's new business amounted to EUR 978.8 million in the first
    nine months of 2014 - a rise of 14.9% compared to the prior year

  - The contribution margin (CM) 2 of GRENKE Group's new business reached
    EUR 160.3 million in the first nine months of 2014. The CM2 margin
    totalled 19.3% (Leasing segment)

Baden-Baden, October 2, 2014: In the first nine months of 2014, the new
business volume of the GRENKE Group (including franchise partners) - i.e.
the total of the acquisition costs of newly purchased lease assets,
factoring volume, and business start-up financing - amounted to EUR 978.8
million (9M-2013: EUR 851.8 million), corresponding to growth of 14.9%. In
the third quarter, new business grew 16.5% over the comparable quarter of
the previous year. We expect to achieve our target growth of 13 to 16% for
the full year.

The contribution margin 2 of GRENKE Group's new business in the first nine
months of 2014 reached EUR 160.3 million (9M-2013: EUR 140.1 million),
which represents a rise of 14.4%. The CM2 margin of the leasing business
amounted to 19.3% (9M-2013: 19.1%) in the first nine months of 2014. The
CM1 margin (contribution margin 1 at acquisition values) totalled 13.6% in
the first nine months of 2014 and amounted to EUR 111.5 million (9M-2013:
EUR 96.2 million). We continued to generate attractive contribution margins
in the nine-month period as a result of our efficient sales management and
the favourable interest rate environment.

The international share of the GRENKE Group's new business amounted to
69.9% in the first nine months of 2014 compared to a total of 65.8% in the
prior year. The development in Germany was subdued but was more than
compensated for by the growth of the international markets. In France, our
largest international market and meanwhile our second home market, we
recorded growth of 24.0% in the nine month period. In our other key markets
such as Italy (growth of 34.5%) and the United Kingdom (growth of 31.0%),
growth continued uninterrupted.

In the first nine months of 2014, the GRENKE Group recorded 234,011 lease
applications (187,540 thereof were international), which generated 100,596
new lease contracts (77,793 thereof were international). All together, we
now have more than 400,000 current leasing contracts in our portfolio. The
mean term per lease contract was EUR 8,164 and was almost unchanged
compared to the previous year (9M-2013: EUR 8,148).

The GRENKE Group's (Leasing segment) conversion rate (applications into
contracts) in the first nine months of 2014 was 43%. The conversion rate in
our international markets was 41%, which was lower than the level achieved
in the German market (49%).

In the Factoring segment, we achieved a rise of 17.4% in our factoring
volume. The income margin on factoring volume of EUR 149.2 million amounted
to 2.13% (9M-2013: 2.34%). This margin is based on the average period for a
factoring transaction of approximately 33 days (9M-2013: approximately 24
days).

GRENKE Bank's business start-up financing developed very positively with a
rise of 88.2% compared to the prior year and volume of EUR 8.4 million.

All amounts in EUR million (previous year's figures have been adjusted)

<pre>

New business                                    9M-2014   9M-2013  % change
GRENKE Group leasing + factoring + business       978.8     851.8      14.9
start-up financing including franchise
partners
- of which: Germany                               294.6     291.5       1.1
- of which: International                         684.2     560.3      22.1


</pre>

<pre>

New business                             9M -2014     9M -2013     % change
GRENKE Group leasing                        821.3        720.3         14.0
- of which: International                   597.4        486.8         22.7
- of which: Franchise international          13.9         16.5        -16.0
- of which: Germany                         210.0        216.9         -3.2
Western Europe* (without Germany)           280.0        231.4         21.0
Southern Europe*                            191.9        152.2         26.1
Northern/Eastern Europe*                    130.8        107.1         22.2
Other regions*                                8.5         12.7        -33.1


</pre>

<pre>

New business                             9M -2014     9M -2013     % change
GRENKE Group factoring                      149.2        127.0         17.4
- of which: Germany                          76.2         70.1          8.7
- of which: International                    52.0         49.5          5.0
- of which: Franchise international          20.9          7.4        183.2


</pre>

<pre>

GRENKE Bank                            9M -2014     9M -2013     % change
Deposits                                  295.7        246.4         20.0
Business start-up financing volume          8.4          4.5         88.2


</pre>

Development of contribution margin 2 in EUR million (previous year's
figures have been adjusted)

<pre>

                                        9M -2014     9M -2013     % change
GRENKE Group leasing                       158.2        137.9         14.8
- of which: International                  125.3        102.6         22.2
- of which: Franchise international          3.1          6.0        -48.7
- of which: Germany                         29.8         29.3          1.8
Western Europe* (without Germany)           56.7         49.7         14.0
Southern Europe*                            43.8         32.8         33.4
Northern/Eastern Europe*                    26.2         21.1         24.2
Other regions*                               1.7          4.9        -65.3


</pre>

*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The
Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain 
Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK /
Czech Republic, Hungary, Poland, Romania, Slovakia
Other regions: Brazil, Canada, Dubai, Turkey 

"We are very pleased with the 14.9% growth in new business in the first
nine months of the reporting year and are on track to reach our target
range for the full year 2014 of 13 to 16%. In the nine-month period, we
opened a new location in Germany and one in Switzerland (Bern). To increase
our presence in existing markets, we are preparing to open additional new
locations in the fourth quarter and enter the markets in Chile and
Croatia," commented Wolfgang Grenke, Chairman of the Board of Directors of
GRENKELEASING AG, with regard to the new business figures.

"We can employ our wide range of refinancing instruments - including the
potential to attract bank deposits - in a flexible manner. The 20.0%
increase in GRENKE Bank's deposit volume to EUR 295.7 million underscores
the bank's importance in the refinancing mix. For the past several weeks,
GRENKE Bank has been offering interested investors fixed-term deposits in
Swiss francs in addition to fixed-term deposits in euros. Both domestic as
well as international customers - particularly our Swiss customers - can
take advantage of this offer," explained Jörg Eicker, Chief Financial
Officer (CFO) of GRENKELEASING AG.

On October 28, 2014 the company is to publish the Financial Report for the
3rd Quarter and the First Nine Months 2014.

Should you have any queries, please contact:

Renate Hauss
Tel.:  +49 7221 5007-204
Fax:  +49 7221 5007-4218
E-mail: investor@grenke.de
Internet: http://www.grenke.de, http://www.grenkeleasing.de,
http://www.grenkebank.de, http://www.grenkefactoring.de

The GRENKE Group

The GRENKE Group is a broadly diversified provider of IT-based services in
Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized
companies. In addition, the GRENKE Bank offers its classic online services
also to private customers.

The GRENKE Group is independent of vendors and banks and 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. The GRENKE Group operates in 27 countries and
employs more than 900 staff.

GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock
Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in
the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN
DE0005865901.

Information on the GRENKE Group and its products is available at
http://www.grenke.de



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02.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                               
Company:     GRENKELEASING AG                                      
             Neuer Markt 2                                         
             76532 Baden-Baden                                     
             Germany                                               
Phone:       +49 (0)7221 50 07-204                                 
Fax:         +49 (0)7221 50 07-4218                                
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, Düsseldorf, Hamburg, München,  
             Stuttgart                                             
 
 
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