DGAP-News: GRENKELEASING AG: New business growth in the first half year - GRENKE's successful first quarter performance continues


DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous
GRENKELEASING AG: New business growth in the first half year -
GRENKE's successful first quarter performance continues

02.07.2015 / 07:27

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New business growth in the first half year - GRENKE's successful first
quarter performance continues

  - GRENKE Group Leasing's new business amounted to EUR 637.7 million in
    the first half of 2015 - a year-on-year increase of 14.8%

  - GRENKE Group Factoring's new business climbed to EUR 145.1 million in
    the first half of 2015 - a year-on-year increase of 52.9%

  - GRENKE Bank's business start-up financing reached EUR 7.5 million in
    the first half of 2015 - a year-on-year increase of 38.3%

Baden-Baden, July 2, 2015: In the first half of 2015, the new business
volume of GRENKE Group Leasing (including franchise partners) - that is,
the total of the acquisition costs of newly purchased lease assets -
amounted to EUR 637.7 million (1. HY 2014: EUR 555.8 million) and
corresponded to growth of 14.8%. Thus, we are in line with our plan to
achieve our growth forecast of 11 - 15%. GRENKE Group Factoring's new
business (including franchise partners) - that is, the total of purchased
receivables - in the first half of 2015 amounted to EUR 145.1 million (1.HY
2014: EUR 94.9 million). This is equivalent to a 52.9% increase. With this
growth, we again exceeded our original growth expectations of 20 - 24% for
the Factoring segment.

The contribution margin 2 of the Leasing segment's new business reached EUR
120.0 million in the first half of 2015 (1.HY 2014: EUR 105.6 million),
which is equivalent to a rise of 13.6%. The CM2 margin of the Leasing
segment totalled 18.8% in the first half of 2015 (1.HY 2014: 19.0%). The
CM1 margin (contribution margin 1 at acquisition values) of the Leasing
segment amounted to 13.9% in the first half of 2015 for a total of EUR 88.9
million (1.HY 2014: 13.4% and EUR 74.4 million, respectively). In the first
half year we were able to maintain our contribution margins in the Leasing
segment at a consistently high level due to the targeted implementation of
our business model, our effective entry into new markets and the favourable
interest rate environment.

The international share of GRENKE Group's new business amounted to 72.4% in
the first half of 2015 compared to 70.6% in the previous year's period.

Despite intense competition within our home market of Germany, we achieved
a double-digit increase (11.8%) of our new business in leasing. The growth
trend also continued in our international markets. We were able to solidify
our position in our core market of France (growth in leasing of 8.7%) and
in the countries important to us such as Italy (growth in leasing of 27.0%)
and Switzerland (growth in leasing of 29.4% and growth of 108.1% in the
Factoring segment).

We opened additional locations in the second quarter of 2015 in line with
our cell division strategy. Following the opening of our new office in
Regensburg, we now have offices in 28 cities in Germany. We continued our
international expansion with the opening of our Newport office - our eighth
location in UK. We are now represented internationally with 83 locations.

In the first half of 2015, the GRENKE Group recorded 177,691 lease
applications (145,088 thereof were international), which generated 77,121
new lease contracts (61,089 thereof were international). The mean
acquisition value per lease contract was EUR 8,269 and was slightly higher
than the level in the previous year (1.HY 2014: EUR 8,082).

The conversion rate (applications into contracts) in the GRENKE Group
(Leasing segment) for the first half of 2015 totalled 43%. The conversion
rate in our international markets was 42%, which was lower than the level
achieved in the German market (49%).

In the Factoring segment, we achieved a 52.9% rise in new business volume.
The income margin on the new business volume generated in Germany of EUR
55.0 million was 2.11% (1.HY 2014: 2.31%). The income margin in our
international markets on new business volume of EUR 90.1 million equalled
1.45% (1.HY 2014: 1.95%). This margin relates to the average period for a
factoring transaction of approximately 35 days in Germany (1.HY 2014:
approx. 31 days) and 38 days in our international markets (1.HY 2014:
approx. 40 days).

Business start-up financing provided by GRENKE Bank developed very
favourably and grew 38.3% in comparison to the previous year and reached a
total volume of EUR 7.5 million.

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

<pre>

New business                            1.HY-2015    1.HY-2014    % change
GRENKE Group leasing                        637.7        555.8        14.8
- of which: International                   469.9        410.7        14.4
- of which: Franchise international          12.4          6.1       104.1
- of which: Germany                         155.5        139.1        11.8
Western Europe* (without Germany)           216.7        190.9        13.5
Southern Europe*                            159.0        132.1        20.4
Northern/Eastern Europe*                     95.7         88.5         8.2
Other regions*                               10.9          5.2       107.4


</pre>

<pre>

New business                            1.HY-2015    1.HY-2014    % change
GRENKE Group factoring                      145.1         94.9        52.9
- of which: Germany                          55.0         48.3        13.9
- of which: International                    70.2         33.8       108.1
- of which: Franchise international          19.9         12.9        53.9


</pre>

<pre>

GRENKE Bank                          1.HY-2015     1.HY-2014     % change
Deposits                                 312.6         253.9         23.1
New business start-up financing            7.5           5.4         38.3


</pre>

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

<pre>

                                       1.HY-2015    1.HY-2014    % change
GRENKE Group leasing                       120.0        105.6        13.6
- of which: International                   95.9         84.7        13.2
- of which: Franchise international          2.2          1.3        78.3
- of which: Germany                         21.9         19.7        11.2
Western Europe* (without Germany)           43.6         38.1        14.3
Southern Europe*                            34.3         29.4        16.7
Northern/Eastern Europe*                    18.3         17.3         5.5
Other regions*                               2.0          1.1        80.7


</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 

"After a strong first quarter, we were able to continue the successful
performance in the second quarter. For example, the new business of our
Leasing segment rose a pleasing 15 percent and that of our Factoring
segment even climbed by 53 percent. This performance is more than enough to
keep us on track to reach this year's forecast. A large portion of this
growth came from high demand in our international markets and especially
from the growth in our home market of Germany. In the face of fierce
competition, we were able to continue to generate double-digit growth", was
the comment from Wolfgang Grenke, Chairman of the Board of Directors of
GRENKELEASING AG on the new business figures.

"Despite our international orientation, regional growth remains an
important pillar of our strategy. GRENKE Bank provides us with the
opportunity to work together with development banks of individual German
states. With Investitionsbank des Landes Brandenburg (the investment bank
of the State of Brandenburg), we have gained another new partner. The goal
of this partnership is to provide small and medium-sized enterprises as
well as members of self-employed professions access to development funds
when they finance business investments through leasing. Through this new
cooperation and the four existing collaborations with other state
development banks, we have concluded roughly 15,000 lease contracts",
explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.

On July 28, 2015 the company is to publish the Financial Report for the 2nd
Quarter and the First Half-Year 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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