Grenke AG — AGM Information 2007

May 8, 2007

News Details

Corporate | 8 May 2007 16:33

GRENKELEASING AG: General Meeting of Shareholders Votes to Increase Dividend

GRENKELEASING AG / AGM/EGM/Dividend

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Baden-Baden, 8 May 2007 – The shareholders of GRENKELEASING AG accepted the
resolutions proposed by the Executive Board and the Supervisory Board by a
large majority within the framework of the ordinary annual meeting of
shareholders held on 8 May 2007 in Baden-Baden. Formal approval of the
actions of the Executive Board and Supervisory Board in financial year 2006
was given.

The shareholders agreed to the proposed dividend increase and
GRENKELEASING AG will pay out a dividend of EUR 0.55 per share for
financial year 2006 (previous year: EUR 0.50). The dividend will be paid
out on 9 May 2007. The total dividend amount comes to EUR 7.5 million. Of
the net profit posted for financial year 2006 amounting to EUR 51.1
million, the sum of EUR 43.5 million will be carried forward to new account
for financial year 2007.

'As a result of good profitability and somewhat diminished volume in growth
compared with prior years, our equity ratio increased from 16.81 % at the
end of 2005 to 17.08 % in 2006. This gives us the opportunity to propose a
dividend at the upper end of our target dividend rate without restricting
growth opportunities in 2007', explained Dr. Uwe Hack, CFO of GRENKELEASING
AG. With regard to the financial year 2006 he added: 'The continuous rise
in interest rates in 2006 weakened our growth in earnings, as can be seen
in the posted interest expenses. Together with the costs for developing new
geographical markets and new product markets, this led to earnings growth
of 5 % which is below the growth rate of previous years. The cost/income
ratio, a key performance indicator that shows the ratio of costs to
earnings, was somewhat higher in 2006 than in the previous year, amounting
to 43.4 % against a figure of 40.6 % in 2005. The reason for this is that,
within the scope of expansion efforts, we have invested more in additional
personnel, leading to an above-average increase in personnel expenses but
future growth in new business and earnings'.

'Through the strategic measures adopted in 2006 and the successful launch
of new products, we have provided the basis for achieving long term success
through constant and profitable growth, hence also increasing our
enterprise value. We seek a growth in new business of around 10 % in 2007.
We expect profits in 2007 to remain at the level of the previous year,
since we will continue to invest in the development of new markets and
products and the lower CB1 margin figures from new business in 2006, caused
by the interest rate increases, will affect net income in 2007', said
Wolfgang Grenke, CEO of the company, outlining the corporate objectives for
2007. 'As of 2008, this interest rate effect is expected to wane and the
changeover to the CB2 margin in our sales management is expected to
successively lead to a significant growth in earnings.'

The Executive Board was delighted with the course of the event. The company
had also invited numerous pupils from the region to the AGM – attended by
around 300 shareholders – including the winners of the Stock-Exchange
Simulation Game staged by the Sparkasse bank in Baden-Baden and 2
eco-nomics classes of the Robert-Schumann school in Baden-Baden.

About the GRENKELEASING Group*

The GRENKE Group* is now active in seventeen European countries.

The GRENKELEASING AG group (excluding franchise partners) is represented in
20 German cities. In addition to seven branches in France and three in
Swit-zerland, the enterprise operates with subsidiaries in Austria, Italy,
Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland and Belgium.

In the United Kingdom, Poland, Norway, Hungary, Romania 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 is listed on the
Prime Standard of Frankfurt's Securities Exchange and is part of the SDAX.

* incl. franchise partners

Information on the company and its products is available on the Internet
under http://www.grenke.de.

Press Officer

GRENKELEASING AG, Neuer Markt 2, D-76532 Baden-Baden
Renate Hauss
Tel.: +49 (0) 7221/5007-204
Fax: +49 (0) 7221/5007-112

DGAP 08.05.2007

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
www: www.grenkeleasing.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Düsseldorf, Hamburg

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