Grenke AG — Earnings Release 2003

Jul 2, 2003

News Details

Ad-hoc | 2 July 2003 08:20

Grenke Leasing AG english

GRENKELEASING continues to show positive growth Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Baden-Baden, July 2, 2003: GRENKELEASING reports EUR 146m in new business in the first half of 2003 (2002: EUR 132m). GRENKELEASING closed the first half of 2003 with earnings in new business – i.e. the total acquisition costs of newly purchased leased assets – of EUR 146m. New business grew by 11 per cent year-on-year. The margin of new business (contribution margin 1), from which the financial result over the life of a contract is derived and which is thus a key indicator of profitability, grew superproportionally to EUR 16m, as compared to a figure of EUR 13.3m in the previous year. This represents a 20 per cent increase. Its German new business grew markedly – despite negative economic conditions – by 16 per cent. GRENKELEASING’s foreign subsidiaries are currently still showing the effect of a – compared to the previous year – more restrictive acceptance policy. They made a 23 per cent contribution to the group’s new business. The company will publish its detailed six months report on August 13, 2003. The Executive Board Should you have any queries, please contact: GRENKELEASING AG, Neuer Markt 2, 76532 Baden-Baden/Germany Renate Hauss Tel: +49-(0) 7221/5007-204 Fax: +49-(0) 7221/5007-112 E mail: investor@grenkeleasing.de Internet: http://www.grenkeleasing.de end of ad-hoc-announcement (c)DGAP 02.07.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: “Due to the fact that there was one less working day compared to the same quarter of the previous year and given the political burdens at the beginning of the quarter, new business in Q2 was somewhat more reserved. The favourable margin trend is, however, anyway the only major factor affecting future earnings. We hold fast to our goal of achieving double-digit growth in our new business and profits this year,” explains Wolfgang Grenke, Chairman of the Executive Board of GRENKELEASING AG. The somewhat weaker growth in foreign new business is, firstly, attributable to higher quality requirements (when in doubt, additional new business was dispensed with in cases where a customer’s creditworthiness was not up to par) and the delayed economic downturn in France. The group recorded 44,576 leasing enquiries in HY1, leading to the generation of 21,462 new leasing contracts. The average value per concluded contract came to EUR 6,813 and is thus slightly lower than the previous year (HY 2002: EUR 7,134). As already reported, the Swiss subsidiary GRENKELEASING AG, Basel, and Swisscom Systems AG, Bern, have concluded a framework agreement. The latter lays out the terms under which Swisscom Systems and its sales partners can offer the financing of telecommunication solutions through GRENKELEASING. Given the opening of two further branches in Rostock and Magdeburg, GRENKELEASING currently has a domestic presence in 20 cities. GRENKE has been in the UK market since April, meaning that GRENKELEASING now has a foreign presence in 12 locations. In addition to its four French branch offices, it has one subsidiary each in Switzerland, Austria, Italy, the Czech Republic, Spain, the Netherlands, and Denmark. The start-up in Sweden is planned for this autumn. GRENKELEASING AG is Germany’s nationwide market leader in small-ticket IT leasing, i.e. for products such as PC’s, notebooks, copiers, printers, or software up to an acquisition value of EUR 25,000. GRENKELEASING AG is listed in the Prime Standard segment of the German stock exchange in Frankfurt and has been taken up into the SDAX (small-cap) index. Information on the company and its products is available on the Internet under http://www.grenkeleasing.de ——————————————————————————– WKN: 586590; ISIN: DE0005865901; Index: SDAX Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 020820 Jul 03