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 --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 02.07.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 End of News DGAP News-Service --------------------------------------------------------------------- 374477 02.07.2015
DGAP-News: GRENKELEASING AG: New business growth in the first half year - GRENKE's successful first quarter performance continues
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