Grenke AG — Earnings Release 2003

Mar 2, 2004

News Details

Ad-hoc | 2 March 2004 07:50

GRENKELEASING: 29 per cent increase in earnings

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– 29 per cent increase in earnings Baden-Baden, March 2, 2004: For fiscal 2003, GRENKELEASING recorded 31 million euros in consolidated earnings before taxes (EBT), which corresponds to a 24 per cent increase year-on-year (2002: 25 million euros). After-tax earnings rose 29 per cent in 2003, to 19.6 million euros (2002: 15.2 million euros). Earnings per share increased from 1.13 euros to 1.45 euros in 2003. As already reported in advance, the Group’s volume of new business grew, i.e. total acquisition costs of newly purchased leased assets rose from 278 million euros in 2002 to 309 million euros in 2003, which represents an 11 per cent increase in new business. The margin of new business (contribution margin 1), which yields financial income over the lifetime of a contract and which is thus a key indicator of the profitability of new business, also saw a disproportionately sharp rise to 33.9 million euros in 2003 (previous year: 28.5 million euros). This corresponds to a 19 per cent increase. GRENKELEASING AG’s individual balance sheet for 2003 shows a distributable profit of 12.0 million euros. At the annual general meeting scheduled for May 4, 2004, the Executive Board and the Supervisory Board will propose that a dividend of 0.33 euros per share be paid out for fiscal 2003 (fiscal 2002: 0.25 euros per share). GRENKELEASING AG’s Group full annual report for 2003 is available at: http://www.grenkeleasing.de – INVESTOR RELATIONS – Figures. The Executive Board For further information, please contact: GRENKELEASING AG, Neuer Markt 2, 76532 Baden-Baden 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 02.03.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: CEO Wolfgang Grenke on the company’s financial statements: “Not only did GRENKELEASING manage to achieve better-than-expected earnings; it also took advantage of the period of diminished investment propensity in the economy to create the preconditions for continued profitable growth. It has consistently extended its presence in the European market, forging new strategic partnerships in the process. Refinancing was expanded and more favorably structured. Cost and risk management also underwent consistent further development. Moreover, since new business – in terms of both volume and margin – is now ahead of the budget figures for the first few weeks of the new year, I look into the future with confidence.” New business in Germany grew by 16 per cent in 2003. GRENKELEASING’s foreign subsidiaries are still showing the effect of a more restrictive acceptance policy compared to the previous year. They made a 22 per cent contribution to the Group’s new business. Strategic partnerships were further extended in the distribution division. As already reported, a pan-European cooperative venture agreement was recently signed with transtec AG, one of Europe’s top producers of IT systems, server and storage solutions and related network and peripheral equipment. In Switzerland, a cooperative distribution venture was recently agreed with UBS Leasing AG, which now also offers small-ticket leasing agreements to potential clients via GRENKELEASING. The number of employees came to 278 in 2003, compared to 281 in 2002 (as at the balance sheet date, excluding members of the Excecutive Board). In fiscal 2003, the Group received 92,422 leasing inquiries, resulting in 45,126 new leasing agreements being concluded. The mean value per agreement amounted to 6,850 euros and thus is slightly down on the previous year (2002 = 7,000 euros). The company is now engaged in thirteen European countries. In Germany, GRENKELEASING is represented in 20 cities. The foreign branches in London and Posen were opened in 2003, and the Stockholm branch began trading in January of this year. The company is now operating with four branches in France – each with a subsidiary in Switzerland, Austria, Italy, the Czech Republic, Spain, the Netherlands and Denmark. In the short term, GRENKELEASING will also commence business operations in Ireland, where it is already represented by two financing subsidiaries. In the United Kingdom and Poland, GRENKELEASING is using a franchise system in order to limit start-up costs and yet ensure at the same time that newly acquired employees operating such franchises identify themselves strongly with the Group’s strategic objectives. Thus, GRENKELEASING AG does not participate directly in on-site operations of the franchise company but provides the know- how, infrastructure and services required for such operations within the scope of a franchise agreement. GRENKELASING AG is Germany’s market leader in small-ticket IT leasing for such products as PCs, notebooks, copiers, printers or software up to a purchase value of 25,000 euros. GRENKELEASING AG is listed in the Prime Standard segment of the Frankfurt Stock Exchange as well as on the SDAX. Additional information on the company and its products is available from: 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 020750 Mär 04