Grenke AG — Earnings Release 2007

Apr 26, 2007

News Details

Ad-hoc | 26 April 2007 08:12

GRENKELEASING AG: Earnings after taxes increased by 2 % to EUR 7.7 million

GRENKELEASING AG / 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 increased by 2 % to EUR 7.7 million
• Increase in new business of the GRENKE Group by 7 %

Baden-Baden, 26/4/2007: Consolidated earnings after taxes of GRENKELEASING
AG increased by 2% to EUR 7.7 million in the first quarter of 2007
(Q1-2006: EUR 7.5 million). Consolidated earnings before interest and taxes
(EBIT) amounted to EUR 11.4 million in the first quarter of 2007 (Q1-2006:
EUR 12 million). Earnings per share rose from EUR 0.55 to EUR 0.56 in the
first quarter of 2007.

As expected, net interest income changed little compared with the
prior-year quarter, with the other components of income increasing as
planned. The settlement of losses also developed according to plan. The
expansion of our international sales activities in 2006 gave rise to a
scheduled increase in personnel expenses and operating expenses compared
with the prior-year quarter. The expansion of our international business
not only led to a broader basis of successful national companies, but also
to a lower group tax rate.

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 7 % to EUR 123.2 million in
Q1 2007 (Q1-2006: EUR 115.2 million).

Growth of the international business of the GRENKE Group* was up by 19 %
year-on-year and contributed a share of 39 % (previous year: 35 %) to the
new business contracted by the GRENKE Group*.

The CM1 margin of the leasing business of the GRENKE Group* (contribution
margin 1 at acquisition value) once again exceeded our target margin of 10%
for the first quarter of 2007, reaching a value of EUR 11.4 million
(Q1-2006: EUR 12 million). The corresponding CM 2 reached a
value of EUR 16.1 million and was up by 2 % year-on-year. The CM 2
reflects, yet on the whole, the rising profitability of our new business is
discernible.

In 2007, we expect new business growth of approx. 10% in the GRENKE Group*.
We anticipate that GRENKELEASING AG group profit in 2007 will be on a par
with the prior year as we will continue to push forward our successful
strategy of further developing new markets and products.

The result was generated by 404 employees, compared with 375 in the first
quarter of 2006 (full-time equivalents excluding directors). 62 employees
are active in franchise operations (Q1-2006: 46).

*incl. franchise partners

The full three months 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:

'The result of the GRENKELEASING AG group developed according to plan. The
expansion of our international sales activities in 2006 gave rise to a
scheduled increase in personnel expenses and operating expenses compared
with the prior-year quarter. The cost-income ratio rose correspondingly.'
explains Dr. Uwe Hack, CFO of GRENKELEASING AG, commenting on the quarterly
financial statement.

As regards to the future trend, he added: 'The main growth drivers were the
ongoing good development of the foreign markets and the positive expansion
of the factoring business in Germany. The development of our European
markets outside Germany shows that the strategy of a pan-European approach
is the correct one to follow. Another milestone was reached in April with
the signing of the franchise agreement with GRENKELEASING in Romania. The
franchise strategy has proven to be an excellent way of tapping new markets
quickly, sustainably and profitably.'

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
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 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

DGAP 26.04.2007

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

End of News DGAP News-Service

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