Grenke AG — Earnings Release 2007

Jul 26, 2007

News Details

Ad-hoc | 26 July 2007 08:09

GRENKELEASING AG: six-month’s report 2007

GRENKELEASING AG / Quarter Results/Quarter Results

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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• Earnings after taxes at EUR 15.6 million on previous year's level
• Increase in new business of the GRENKE Group incl. franchise partners by
9.7 %

Baden-Baden, 26/7/2007: Consolidated earnings after taxes of GRENKELEASING
AG increased by 1% to EUR 15.6 million in the first half of 2007 (HY1-2006:
EUR 15.5 million) well within our forecast for the year.

Consolidated earnings before interest and taxes (EBIT) amounted to EUR 22.8
million in the first half of 2007 (HY1-2006: EUR 25 million). Earnings per
share at 1.14 EUR in the first half of 2007 on previous year's level.

Interest income from the leasing business developed according to plan in
the second quarter of 2007, increasing in comparison with the prior year.
An increase was thus recorded for the first half of the year too. This
upward trend was balanced by reductions in earnings and increased expenses
that were either planned or related to quarterly fluctuations on other
items, resulting together with a slightly lower tax-rate in earnings after
tax on previous year’s level.

Our vigorous expansion abroad is thus, as expected, leading to development
cost in the current year which will be recouped by additional earnings in
the future. Accordingly, we have seen increases in personnel expenses and
operating expenses as planned. In addition, the 2007 second-quarter
earnings before tax were affected by higher year-on-year expenses for
settlements of claims and lower profit from disposals. The increased loss
rate is a consequence of our expansion into new markets, but it lies within
our published forecast. The loss rate is still within our target, meaning
that our risk management system has again proven its reliability during the
current expansion phase.

Through the successful development of what are now significant and
profitable foreign operations the tax rate is currently decreasing visibly.
We also expect to have a one-off positive tax effect from deferred taxes as
a result of the changes resulting from the business tax reform.

As already reported the GRENKE Group’s (incl. franchise partners) volume of
new business - i.e. the sum total of acquisition costs of newly purchased
leasing assets and factoring volume – rose by 9.7 % to EUR 251 million in
HY1 2007 (HY1-2006: EUR 229 million). This positive result was driven by a
growth rate of 12.5 % in the second quarter of 2007 compared with 7 % in
the first quarter of 2007 (year-on-year in each case) and shows that the
growth momentum of new business is increasing again.

Our key performance indicator, contribution margin 2 of the leasing
business of the GRENKE Group also developed satisfactorily. CM2 amounts to
EUR 32.4 million in the first half 2007, up by 4.7 % year-on-year and shows
a further improvement in the profitability of our business.

The result was generated by 410 employees, compared with 379 in the first
half of 2006 (full-time equivalents excluding directors). 90 employees are
active in franchise operations (HY1-2006: 51).
The full six month’s report for 2007 is available on the internet under
www.grenkeleasing.de Investor Relations – Financial Data.

The Executive Board

Should you have any queries, please contact:

Renate Hauss
Tel.: 0049 -7221/5007-204
Fax: 0049-7221/5007-112
E-mail: investor@grenkeleasing.de
Internet: http://www.grenkeleasing.de

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Information and Explaination of the Issuer to this News:

'We are on course to meet our forecast for the year, with net profit for
the second quarter and the first half being on a par with that of the prior
year. We are quite optimistic for new business development in the second
half of 2007. We will exploit the additional opportunities for new business
in Germany after the Business Tax Reform has been passed in July by
actively and comprehensively educating our retailers. We will quickly
distribute the information our sales partners need to do this and aim to
further increase the volume of new business as a result.' said Dr. Uwe
Hack, CFO of GRENKELEASING AG, in explaining the results.

'Since the end of 2003, we have built up an attractive portfolio of
franchise activities. With average market penetration periods of four to
six years, the first companies are now gradually reaching the phase in
which it is interesting for GRENKELEASING to exercise its purchase option
and integrate the companies into the Group. We are concurrently expanding
the franchise network, adding a franchise partner for the establishment of
an office in Madrid, Spain, in the reporting quarter.'

The GRENKE Group (incl. franchise partners) now operates 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
Switzerland, 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, Spain 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.
DGAP 26.07.2007

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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: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf, Hamburg

End of News DGAP News-Service

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