DGAP-Adhoc: GRENKELEASING AG: Final Results 2007

GRENKELEASING AG / Final Results/Final Results

01.02.2008

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Group net-profit amounting to EUR 32.1 million, up by 5 % in line with
expectations
Increase in new business of the GRENKE Group by 10.7 %
Executive Board and Supervisory Board propose dividend increase of 9 %

Baden-Baden, February 1, 2008: For fiscal 2007, GRENKELEASING reports Group
net-profit of EUR 32.1 million, including a non-recurring positive tax
effect amounting to EUR 1.5 million. This is equivalent to an increase of 5
% (2006: EUR 30.5 million). Group earnings before interest and taxes
(EBIT), amounting to EUR 45.2 million, did not reach previous years result
of EUR 48.1 million. Earnings per share were up from EUR 2.23 to reach EUR
2.35 in 2007.

The development of net interest income generated from leasing operations
was satisfactory. We have succeeded so far in passing on the higher
refinancing costs resulting from the subprime crisis full into the market
and also managed to generate a slight increase in net interest income. As
expected, our claims settlements in fiscal 2007 led to higher expenses than
in the previous year. This was due to our expansion into new markets and
had been expected.

We manage our business with a view to a positive risk-return trade-off,
accepting a rising loss rate as long as it is covered by higher interest
premiums. The current loss rate is still far below our internal threshold,
proving that our risk management system is well equipped to cope with the
present phase of expansion abroad with its rapid growth in new markets.

Profit from insurance and profit from new business increased yet again in
fiscal year 2007. This is the outcome of our relatively new contribution
margin 2 control system, whereas the decline in profit from disposals is
due to the fact that in prior years not all components of earnings were
included in the key performance indicators. In order to improve the quality
of new business, we aim for a high contribution margin 2 and have made a
conscious decision to abandon low-margin business. This could lead to
declining income in certain positions during the remaining terms of
agreements which were concluded previously for instance in profit from
disposals.

On the cost side, our strong expansion abroad led, as predicted, to
start-up costs in the fiscal year which will be recouped by additional
earnings in future periods. Our consultancy and audit costs also increased
discernibly in fiscal 2007 in connection with a study commissioned on the
impacts of the corporate taxation reform in Germany.

The Executive Board and Supervisory Board will, on the annual general
meeting due to be held on 6 May 2008, propose an increased dividend of EUR
0.60 per share for the financial year 2007 (fiscal 2006: EUR 0.55 per
share).

As already reported, the volume of new business the sum total of the
acquisition costs of newly acquired leasing items and receivables of the
GRENKE Group including franchise partners, increased from EUR 460 million
in 2006 to EUR 509 million in 2007. This corresponds to year-on-year growth
in new business of 10.7 % for the full year 2007.

The primary drivers of new business growth of the GRENKE Group and its
franchise partners remained unchanged, with foreign markets expanding by 27
% and continued expansion of franchise activities. The international
business contributed a share of 40.7 % to the new business of the GRENKE
Group (previous year: 35.5 %). Our factoring business reported a highly
dynamic trend, with a volume of EUR 48.8 million being recorded (2006: EUR
22.5 million).

In fiscal 2007 as a whole, the CM1 margin of leasing operations of the
GRENKE Group (contribution margin 1 at acquisition values) reached our
target margin of 10 % and a value of EUR 47.1 million (2006: EUR 45.5
million comparative figure for leasing operations). The corresponding
contribution margin CM2 amounts to EUR 65.1 million, up by 7.2 %
year-on-year.

In fiscal 2008 we plan to match our medium-term growth target for new
business of the GRENKE Group including franchise partners of more than 10%
yet again.

In the United Kingdom and Poland, we exercised our purchase option and
acquired both companies. In addition, by entering into franchise agreements
in Portugal and Slovakia, we managed to extend our operations into two
further markets.

In view of the subprime crisis, our risk management system to secure our
liquidity has shown its strength. Adequate liquidity was available at all
times and we even increased the amount of available facilities.

We expect a further stable and positive trend to continue with regard to
our earnings for 2008. The potential growth rate versus 2007, however,
depends heavily on a number of external factors, which cannot yet be fully
evaluated. These include, prolonged and increased capital market insecurity
as a result of the subprime crisis with related negative effects on
refinancing costs; the crisis spilling over into the real economy resulting
in increasing loss rates; and lack of clarity over of the details of the
taxation of forfait financing deals. Depending on how these factors
develop, we expect for 2008 a Group net-profit for the period of between
EUR 30.6 million to EUR 33 million.

The finance report of the GRENKELEASING AG Group for fiscal 2007 is
available for download on the Internet from www.grenke.de - INVESTOR
RELATIONS Finanzdaten (financial data).

The Executive Board

Should you have any queries, please contact:

Renate Hauss
Tel.: 07221/5007-204
Fax: 07221/5007-112
Email: investor@grenke.de
Internet: http://www.grenke.de

End of ad-hoc communication

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Information and Explaination of the Issuer to this News:

'In fiscal 2007 we met our profit target for the year. After recording EUR
30.5 million in earnings in 2006, our net-profit in fiscal 2007 came to EUR
30.6 million and, including a non-recurring tax effect amounting to EUR 1.5
million, it reached EUR 32.1 million. For fiscal 2008, we are confident of
our ability to achieve our medium-term growth target for new business of
the GRENKE Group including franchise partners of more than 10 % once again.
As in the past financial year, the primary growth drivers are our companies
abroad, while it is our objective to continue investing in profitable
leasing-business in our home market, Germany, in future.' says Wolfgang
Grenke, Chairman of the Companys Executive Board in describing the plans
for 2008.

'Developing new markets with our franchise model remains highly successful.
Our franchise companies, particularly in the United Kingdom and Poland are
recording substantial new business growth and surpassed the EUR 10 million
barrier in 2007. For this reason, we exercised our purchase option and
acquired both
companies. Both have been on the market since the end of 2003 and have
successfully established themselves.'

Further explanations:
'In view of the crisis on the financial markets, our risk management system
to secure our liquidity has shown its strength. Adequate liquidity was
available at all times and new facilities have been obtained recently. This
is the result of our stable earnings base, high profitability and the
strong and fully transparent balance sheet leading to the recently
confirmed rating of BBB+ and a stable outlook. So far, we have managed to
pass on the moderately higher refinancing costs due to the subprime crisis
in full to the market, and we believe well also be able to do so in
future.' said Dr. Uwe Hack, Deputy Chairman of the Executive Board of
GRENKELEASING AG, in explaining the financial statements.

The average number of employees came to 411 in 2007 against a figure of 384
in 2006 (on a full-time basis, excluding the Executive Board). 91 employees
work for the groups franchise companies (previous year: 62).

The GRENKE Group recorded a total of 118,407 leasing inquiries (ex Germany
56,589) and of which 60,000 new leasing contracts (ex Germany 27,481) were
generated. The average value per contract concluded came to approx. EUR
7,673 and is nearly unchanged compared to the previous year (2006: EUR
7,681 comparative figure adjusted accordingly).

The GRENKE Group (incl. franchise partners) now operates in nineteen
European countries.

The GRENKELEASING AG Group (excluding franchise partners) is represented in
20 German cities. In addition to eight branches in France, three in
Switzerland and two in Italy, the enterprise operates with subsidiaries in
Austria, Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland, United
Kingdom, Poland and Belgium.

In Norway, Hungary, Romania, Spain (Madrid), Portugal, Slovakia as well as
in Germany in the field of car leasing and factoring, GRENKELEASING has a
franchise system in place.

GRENKELEASING offers contracts predominantly in the field of small-ticket
IT leasing for such products as PCs, notebooks, copiers, printers or
software of a relatively low asset value.

GRENKELEASING AG shares are listed at Frankfurt Stock Exchange (SDAX) with
the code GLJ, ISIN DE0005865901.

Information on the company and its products is available on the Internet
under http://www.grenke.de.
DGAP 01.02.2008
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Language: English
Issuer: 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@grenkeleasing.de
Internet: www.grenkeleasing.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf, Hamburg
End of News DGAP News-Service
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