DGAP-News: GRENKELEASING AG: Successful start - GRENKE's new business growth continues the successful trend of the past year


DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous
GRENKELEASING AG: Successful start - GRENKE's new business growth
continues the successful trend of the past year

02.04.2015 / 07:14

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Successful start - GRENKE's new business growth continues the successful
trend of the past year

  - GRENKE Group Leasing's new business amounted to EUR 304.8 million in
    the first quarter of 2015 - a year-on-year increase of 15.3%

  - GRENKE Group Factoring's new business climbed to EUR 65.6 million in
    the first quarter of 2015 - a year-on-year increase of 50.8%

  - GRENKE Bank's business start-up financing reached EUR 4.0 million in
    the first quarter of 2015 - a year-on-year increase of 37.3%

Baden-Baden, April 2, 2015: In the first quarter of 2015, the new business
volume of GRENKE Group Leasing (including franchise partners) - i.e., the
total of the acquisition costs of newly purchased lease assets - amounted
to EUR 304.8 million (Q1-2014: EUR 264.4 million) and corresponded to
growth of 15.3%. Thus, we are at the upper end of our forecast range of 11
- 15%. GRENKE Group Factoring's new business (including franchise partners)
- i.e., the total of purchased receivables - in the first quarter of 2015
amounted to EUR 65.6 million (Q1-2014: EUR 43.5 million). Our new business
increased by 50.8%. This successful start in the year 2015 meant that we
were able to significantly surpass our original expectations for the
Factoring segment of a rise in the range of 20 - 24%.

The contribution margin 2 of the Leasing segment's new business reached EUR
58.9 million in the first quarter of 2015 (Q1-2014: EUR 49.4 million),
which is equivalent to a rise of 19.2%. The CM2 margin of the Leasing
segment totalled 19.3% in the first quarter of 2015 (Q1-2014: 18.7%). The
CM1 margin (contribution margin 1 at acquisition values) of the Leasing
segment amounted to 14.2% in the first quarter of 2015 for a total of EUR
43.3 million (Q1-2014: 13.0% and EUR 34.5 million, respectively). This
attractive contribution margin can be attributed to the continued pursuance
of our business model, our consistent penetration of markets and the
favourable interest rate environment.

The international share of GRENKE Group's new business amounted to 72.9% in
the first quarter of 2015 compared to 70.2% in the previous year's quarter.

Despite the intense competition encountered in our home market, we
increased our leasing new business in Germany by a pleasing 9.2%. In
France, our largest international market and meanwhile our second home
market, we recorded growth in our leasing volume of 11.8% in the first
quarter of 2015. In both the Italian market (growth in leasing of 20.0%)
and the Swiss market (growth in leasing of 49.5% and 115.4% growth in the
Factoring segment), which are important markets for us, the growth trend
continued.

In line with our growth strategy, we opened additional locations in the
first quarter of 2015. With our location in Bielefeld, we now have 27
locations in Germany. We are intensifying our international growth by
opening a new branch in Malmö (Sweden).

In the first quarter of 2015, GRENKE Group recorded 89,787 lease
applications (73,117 thereof were international), which generated 37,321
new lease contracts (29,505 thereof were international). The mean term per
lease contract was EUR 8,167 and was slightly higher than the level in the
previous year (Q1-2014: EUR 7,958).

The conversion rate (applications into contracts) in the GRENKE Group
(Leasing segment) for the first quarter of 2015 totalled 42%. The
conversion rate in our international markets was 40%, which was lower than
the level in the German market (47%).

The Factoring segment achieved a 50.8% rise in new business volume. The
income margin on the new business volume generated in Germany of EUR 24.6
million amounted to 2.15% (Q1-2014: 2.35%). In our international markets,
the income margin on our new business volume of EUR 41,0 million was 1.59%
(Q1-2014: 2.04%). This margin is based on the average period for a
factoring transaction in Germany of around 31 days (Q1-2014: approx. 35
days) and of 28 days in our international markets (Q1-2014: approx. 39
days).

Business start-up financing provided by GRENKE Bank developed very
favourably and grew 37.3% in comparison to the previous year reaching a
total volume of EUR 4.0 million.

All figures are stated in EUR million (previous year's figures have been
adjusted).

<pre>

New business                             Q1-2015     Q1-2014     % change
GRENKE Group leasing                       304.8       264.4         15.3
- of which: International                  224.6       193.6         16.0
- of which: Franchise international          7.1         3.9         80.7
- of which: Germany                         73.0        66.9          9.2
Western Europe* (without Germany)          108.6        90.2         20.4
Southern Europe*                            72.0        62.1         15.9
Northern/Eastern Europe*                    45.9        42.9          7.1
Other regions*                               5.2         2.3        127.9


</pre>

<pre>

New business                             Q1-2015     Q1-2014     % change
GRENKE Group factoring                      65.6        43.5         50.8
- of which: Germany                         24.6        22.8          7.7
- of which: International                   32.5        15.1        115.4
- of which: Franchise international          8.5         5.6         52.8


</pre>

<pre>

GRENKE Bank                             Q1-2015      Q1-2014      % change
Deposits                                  288.9        252.7          14.3
Business start-up financing volume          4.0          2.9          37.3


</pre>

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

<pre>

                                         Q1-2015      Q1-2014      % change
GRENKE Group leasing                        58.9         49.4          19.2
- of which: International                   46.9         39.1          19.8
- of which: Franchise international          1.4          0.9          47.9
- of which: Germany                         10.6          9.3          13.6
Western Europe* (without Germany)           21.9         17.6          24.5
Southern Europe*                            16.5         13.7          20.3
Northern/Eastern Europe*                     8.9          8.2           8.3
Other regions*                               0.9          0.5          83.7


</pre>

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

"With the achievement of 15.3% growth in our Leasing segment, we have
gotten off to a successful start in the year 2015 and have growth at the
upper end of our forecast range. We are particularly pleased with the
successful first quarter performance in our home market of Germany where we
achieved growth of almost 10% despite intense competition. In addition, we
were able to realise 51% growth in new business volume in our Factoring
segment, which is significantly above our expectations for the first
quarter of 2015. This performance is due, among others, to the ongoing
internationalisation of our Factoring segment. So that we may continue to
generate this dynamic growth in the future, we are permanently expanding
our range of offers within our Leasing and Factoring segments in both new
and existing markets. We are particularly proud of the fact that GRENKE
Bank was awarded the concession by the Federal Ministry of Labour and
Social Affairs to continue the microcredit program on a nationwide basis.
Supporting small- and medium-sized businesses has been an integral
component of our Group philosophy for 35 years. GRENKE Bank's experience
thus far in the area of business start-up financing will allow us to
implement this contract throughout Germany", commented Wolfgang Grenke,
Chairman of the Board of Directors of GRENKELEASING AG, on the new business
figures.

"Regional growth and the diversification of our product range are integral
components of our growth strategy. GRENKE Bank plays an important role in
this regard. Since 2012, we have cooperated with Thüringer Aufbaubank to
make development funds available. This cooperation is set to continue. In
the context of this now third global loan from which over 1,300 sponsored
lease contracts have been concluded to date, an additional 5 million euros
are available to small- and medium-sized businesses as well as
self-employed professionals located in Thuringia at particularly favourable
conditions. There are similar programmes with three additional development
banks.", explained Jörg Eicker, Chief Financial Officer (CFO) of
GRENKELEASING AG.

On April 29, 2015 the company is to publish the Financial Report for the
1st Quarter 2015.

Should you have any queries, please contact:

GRENKELEASING AG
Corporate Communications / Investor Relations
Renate Hauss
Neuer Markt 2
76532 Baden-Baden, Germany
Tel.:  +49 7221 5007-204
E-mail: investor@grenke.de
Internet:  http://www.grenke.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 29 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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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:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
             Stuttgart                                                  
 
 
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340887 02.04.2015