DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous GRENKELEASING AG: GRENKE's growth in new business remains on track in first half of 2011 - new business up by 25.6% 04.07.2011 / 07:35 --------------------------------------------------------------------- GRENKE's growth in new business remains on track in first half of 2011 - new business up by 25.6% - New business in the GRENKE Group amounts to EUR 409,0 million in first half of 2011 - corresponding to growth of 25.6% - Contribution margin 2 (CM2) on new business in the GRENKE Group reaches EUR 56.8 million in first half of 2011 with a CM2 of 14.9% (leasing division) - new business remains very profitable - Market entry in Turkey Baden-Baden, 4 July 2011: In the first half of 2011, the volume of new business in the GRENKE Group (incl. franchise partners) - i.e. the sum total of acquisition costs for newly acquired leasing assets and the factoring volume - amounted to EUR 409,0 million (first half of 2010: EUR 325.6 million), corresponding to 25.6% growth. The GRENKE Group is therefore still on track in the first half of 2011 to achieve its target for the year of new business growth of over 20%. Contribution margin 2 (CM2) on new business in the GRENKE Group reached EUR 56.8 million in first half of 2011 with a CM2 of 14.9% (leasing division). We were able to increase the CM2 to 15.4% (leasing division) in the second quarter of 2011 as against 14.3% (leasing division) in the first quarter of 2011. This demonstrates that despite continued strong growth we are concluding highly profitable new business, which will be reflected in rising income in the coming quarters. The international segment contributed a share of 61.6% to the GRENKE Group's new business (previous year: 59.4%), showing that our expansion throughout Europe is continuing to bear fruit. In the second quarter of 2011, we carried out further cell divisions as part of our market penetration strategy in order to increase our presence on the market. In Italy, we opened our Turin office and are now represented at a total of seven locations. In France, we opened a tenth location in Grenoble. Our franchise partner in Portugal opened a third location in Leiria. Further cell divisions are also planned for the second half of 2011 so as to take advantage of the strong opportunities for growth and to secure the market share gained. In addition, we entered another attractive market by entering into a franchise agreement in Turkey. In Germany, the encouraging development of new business seen over the past several quarters continued. Despite the higher competitive intensity in our home market, we achieved 18.9% growth in new business from EUR 132.2 million in the first half of 2010 to EUR 157.2 million in the first half of 2011. In first half of 2011, GRENKE Group recorded a total of 110,500 leasing inquiries (ex Germany 79,937), on the basis of which 46,816 new leasing contracts (ex Germany 37,372) were generated. The average value per leasing contract concluded came to approx. EUR 8,013, and is slightly up on the previous year's figure (first half of 2010: EUR 7,450). Our conversion rate (inquiries to contracts) in the GRENKE Group (leasing division) in the first half of 2011 was 42%, thus remaining below our target level. The conversion rate in our international markets (40%) is lower than in the German market (47%) and shows that we are not compromising our conservative risk orientation in individual international markets. All figures in EUR million |[![CDATA[|[pre|]]]|] New business 1.HY-2011 1.HY -2010 % change GRENKE Group including franchise 409,0 325.6 25.6 partners* - of which: Germany 157.2 132.2 18.9 - of which: International 215.9 171.5 25.9 - of which: Franchise international 35.9 21.9 64.0 |[![CDATA[|[/pre|]]]|] * incl. Factoring |[![CDATA[|[pre|]]]|] New business 1.HY -2011 1.HY -2010 % change GRENKE Group leasing business 375.1 309.1 21.3 - of which: Germany 131.0 115.8 13.2 - of which: International 215.9 171.5 25.9 - of which: Franchise international 28.2 21.9 28.9 |[![CDATA[|[/pre|]]]|] |[![CDATA[|[pre|]]]|] New business 1.HY -2011 1.HY -2010 % change GRENKE Group Factoring 33.8 16.4 105.9 - of which: Germany 26.1 16.4 59.1 - of which: Franchise international 7.7 n.a. n.a. (CH) |[![CDATA[|[/pre|]]]|] |[![CDATA[|[pre|]]]|] GRENKE BANK 1.HY -2011 1.HY -2010 % change Deposits 145.7 134.6 8.2 Business start-up financing volume 0.1 n.a. n.a. |[![CDATA[|[/pre|]]]|] New business from leasing by international markets in EUR million |[![CDATA[|[pre|]]]|] 1.HY -2011 1.HY -2010 % change France 85.5 74.1 15.4 Switzerland 8.6 9.2 -7.0 Italy 52.7 29.9 76.2 Spain (incl. franchise) 11.0 9.1 21.1 United Kingdom 21.0 15.8 33.4 Poland 6.1 5.4 12.8 Netherlands 7.0 6.9 1.7 Portugal (franchise partner) 15.1 12.3 22.6 |[![CDATA[|[/pre|]]]|] At 10.4% in the first half of 2011, the CM1 level of the GRENKE Group's leasing operations (contribution margin 1 at acquisition values) achieved our target margin of 10%, reaching a value of EUR 39.1 million (first half of 2010: EUR 34.8 million - comparative figure for leasing operations). The corresponding CM2 amounts to EUR 55.8 million, up by 12.0% compared with the previous year. Development of contribution margin 2 (CM2) in EUR million |[![CDATA[|[pre|]]]|] 1.HY -2011 1.HY -2010 % change GRENKE Group including franchise 56.8 50.2 13.2 partners* - of which: Germany 17.6 16.1 9.8 - of which: International 33.7 30.1 11.9 - of which: Franchise business 5.5 4.0 36.9 international |[![CDATA[|[/pre|]]]|] * incl. Factoring |[![CDATA[|[pre|]]]|] 1.HY -2011 1.HY -2010 % change GRENKE Group leasing business 55.8 49.9 12.0 - of which: Germany 16.8 15.8 6.7 - of which: International 33.7 30.1 11.9 - of which: Franchise business 5.4 4.0 32.9 international |[![CDATA[|[/pre|]]]|] |[![CDATA[|[pre|]]]|] 1.HY -2011 1.HY -2010 % change France 13.7 13.3 3.2 Switzerland 1.6 1.9 -16.2 Italy 6.6 4.3 52.6 Spain (incl. franchise) 1.6 1.5 9.6 United Kingdom 4.2 3.0 40.7 Poland 0.6 0.6 -10.7 Netherlands 1.4 1.3 1.1 Portugal (franchise partner) 3.2 2.5 30.1 |[![CDATA[|[/pre|]]]|] The profit margin in relation to the factoring volume of EUR 33.8 million amounted to 2.4% (first half of 2010: 2.3%). This margin is based on the average period of a factoring transaction, which was approx. 38 days (first half of 2010: approx. 38 days). 'The growth in new business of 25.6% in the first half of 2011 shows that we are well on track to achieve our growth target. In our home market of Germany, we saw strong double-digit growth. In the first half of 2011 alone, we carried out a total of six cell divisions to further increase our presence on the individual international markets. This impressively emphasises our growth strategy. By entering the Turkish market, we will open up another attractive international market', says Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, describing the future strategy. 'The development of our CM1, which was at 10.9% in the second quarter, shows that the decrease in our refinancing margins compensated for the rising interest rates on the refinancing market. This boosts our competitiveness, as reflected in the growth in new business. The continued high level of growth with profitable margins should have a positive impact on earnings', explains Dr. Uwe Hack, Deputy Chairman of the Board of Directors of GRENKELEASING AG. On August 1, 2011, the company is to publish the full quarterly financial report as per June 30, 2011. Should you have any queries, please contact: Renate Hauss Phone: +49 7221 5007-204 Fax: +49 7221 5007-112 E-mail: investor@grenke.de Internet http://www.grenke.de; http://www.grenkebank.de, http://www.grenkefactoring.de The GRENKE Group The GRENKE Group is a broadly diversified provider of financial services for small to medium-sized enterprises and for private retail clients. The GRENKE Group comprises companies which operate in fourteen European countries, all being part of the consolidated GRENKELEASING corporate group. In addition the GRENKE Group is represented in nine further countries in Europe by way of a franchise system. Including its leasing franchise partners and its factoring franchise partner in Switzerland, the GRENKE Group is represented at 23 locations in Germany and a total of 49 locations internationally. The range of services offered by the GRENKELEASING Group (not including franchise partners) covers small-ticket IT leasing and factoring and - through GRENKE BANK AG - classic online banking services. GRENKE BANK AG has been part of the GRENKELEASING Group since the beginning of 2009. The bank- and vendor-independent GRENKE Group 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. Its range is rounded off by Car Leasing from one of its franchise partners. GRENKELEASING AG is listed on the Prime Standard of the Frankfurt Securities Exchange and is part of the SDAX. The shares of GRENKELEASING AG are listed on the SDAX of the Frankfurt Securities Exchange under the identification code GLJ, ISIN DE0005865901. Information on the GRENKE Group and its products is available for download on the Internet, at http://www.grenke.de, http://www.grenkebank.de, http://www.grenkefactoring.de. End of Corporate News --------------------------------------------------------------------- 04.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's 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 Deutschland Phone: +49 (0)7221 50 07-204 Fax: +49 (0)7221 50 07-112 E-mail: investor@grenke.de Internet: www.grenke.de ISIN: DE0005865901 WKN: 586590 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 130688 04.07.2011
DGAP-News: GRENKELEASING AG: GRENKE's growth in new business remains on track in first half of 2011 - new business up by 25.6%
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