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Grenke AG — Earnings Release 2010
Oct 4, 2010
189_rns_2010-10-04_d569410b-ed8f-4f32-a5c9-eb6ac3483027.html
Earnings Release
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Ad-hoc | 4 October 2010 08:23
GRENKELEASING AG: Growth Trend Continues Unabated – Development of New Business in First Nine Months of 2010
GRENKELEASING AG / Key word(s): Miscellaneous
04.10.2010 08:23
Dissemination 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.
Growth Trend Continues Unabated
- Strong international growth in new business of 75.8%
- New business in the GRENKE Group amounts to EUR 492 million in the
first nine months of 2010. Contribution margin (CM) 2 on new business
in the GRENKE Group reaches EUR 74.8 million in the first nine months
of 2010 and remains at a high level with a CM2 margin of 16 **%
(leasing business)
Baden-Baden, October 4, 2010: In the first nine months of 2010, the volume
of new business in the GRENKE Group (incl. franchise partners) - i.e. the
total of the acquisition costs of newly acquired leasing assets and the
factoring volume - amounted to EUR 492.0 million (9M-2009: EUR 345.8
million), corresponding to growth of 42.3 %.
The extremely good new business development of the GRENKE Group (incl.
franchise partners) continued in the third quarter of 2010 despite the
typical seasonal fluctuations in the summer months. Growth rates will slow
down in the fourth quarter due to base effects, as we steered the Group
back towards growth in the second half of 2009 and the expansion in the
business volume accelerated steadily towards the end of the year. Despite
this, we are increasing our forecasts for new business volume for the 2010
financial year as a whole and now expect the GRENKE Group (incl. franchise
partners) to record new business growth of around 30%.
At 16.0 %, the CM2 margin for the first nine months remains above the
pre-crisis level. The continued rise in the number of enquiries and the
weakening of competitive intensity as reported previously are having a
positive effect, allowing us to achieve the planned new business growth
while systematically limiting risk and achieving above-average contribution
margins. Our rapid expansion within Europe is paying off, with the CM2 in
the international segment increasing by 51.6 %. We are generating growth
where the markets offer the best opportunities in terms of volumes and
margins, making ourselves increasingly independent of our home market of
Germany. The international segment contributed a share of 58.5 % to the
GRENKE Group's new business (previous year: 48.4%). The growth trend
continued in our international markets in the third quarter, particularly
in our largest markets of France, Italy and the United Kingdom.
Market penetration in the individual countries is achieved through cell
divisions. Once a subsidiary or franchise partner has successfully
established itself in the respective regional market, new locations are
systematically opened. In the third quarter, we opened a new branch in
Bristol - our third location in the United Kingdom. Further cell divisions
are planned in the individual international markets as part of our growth
strategy. We are also currently looking at the possibility of entering two
new countries.
The franchise company GRENKEFACTORING AG, Basle, started operations in
Switzerland in the third quarter, offering financing solutions for
commercial customers in the area of factoring.
Our growth is built upon our high equity ratio and extremely strong
financing base. In the first half of 2010, we successfully positioned
ourselves on the capital markets with different types of placements,
meaning that we were not required to use the market for refinancing in the
third quarter of 2010.
In the first nine months of 2010, the GRENKE Group recorded a total of
142,670 leasing enquiries (ex Germany: 96,474) on the basis of which 60,854
new leasing contracts (ex Germany: 39,586) were generated. The average
value per leasing contract concluded was around EUR 7,610, an increase on
the previous year (9M-2009: EUR 7,172).
All in all, the number of enquiries - which reflect the level of demand for
leasing - increased by 32 % year-on-year in the first nine months of 2010,
with the figure for the international segment rising by as much as 48.7 %.
We are also gradually increasing the conversion ratio (enquiries to
contacts), which amounted to 43 % in the first nine months. Although the
conversion ratio remains below our target level due to the increased share
of business attributable to international markets, it is moving in the
right direction. As a rule, the conversion rate in our international
markets is still lower than the conversion rate for the Group as a whole
because we are not yet as well known in new markets and have maintained a
cautious risk policy in some individual foreign markets.
All figures in EUR mio.
New business business 9M-2010 9M-2009 % change
GRENKE Group including franchise partners* 492.0 345.8 42.3
- of which: Germany 204.1 178.6 14.3
- of which: International 255.1 145.1 75.8
- of which: Franchise international 32.7 22.1 47.9
* incl. Factoring
New business business 9M-2010 9M-2009 % change
GRENKE Group leasing business 463.0 309.1 49.8
- of which: Germany 175.2 141.8 23.6
- of which: International 255.1 145.1 75.8
- of which: Franchise international 32.6 22.1 47.3
New business business 9M-2010 9M-2009 % change
GRENKE Group Factoring 29.0 36.8 -21.1
- of which: Germany 28.9 36.8 -21.5
- of which: Franchise international (CH) 0.1 n.a. n.a.
GRENKE BANK 9M-2010 9M-2009 % change
Deposits per September 30, 2010 120.9 107.9 12.1
Business start-up financing volume 0.2 n.a. n.a.
New business from leasing by international markets in EUR million
9M-2010 9M-2009 % change
France 106.8 60.9 75.4
Switzerland 13.6 10.8 25.2
Italy 47.4 17.8 165.8
Spain (incl. franchise Madrid) 12.6 10.5 19.4
United Kingdom 26.2 9.9 165.0
Poland 7.2 8.1 -11.6
Netherlands 9.8 8.5 15.5
Portugal (franchise partner) 17.5 12.4 40.5
The CM1 margin of the GRENKE Group's leasing operations (contribution
margin 1 at acquisition values) exceeded our target of 10% in the first
nine months of 2010, amounting to 11.0 % or a value of EUR 51.0 million
(9M-2009: EUR 42.3 million - comparative figure for leasing operations).
The corresponding CM2 amounts to EUR 74.0 million, up 23.6 % year-on-year.
Development of contribution margin 2 (CM2) in EUR million
9-2010 2009 % change
GRENKE Group including franchise partners* 74.8 60.2 24.4
- of which: Germany 24.5 26.3 -6.9
- of which: International 44.0 29.0 51.6
- of which: Franchise business international 6.4 4.9 30.6
* incl. Factoring
9M-2010 9M-2009 % change
GRENKE Group leasing business 74.0 59.9 23.6
- of which: Germany 23.6 26.0 -9.2
- of which: International 44.0 29.0 51.6
- of which: Franchise business international 6.4 4.9 30.6
9M-2010 9M-2009 % change
France 19.0 13.3 43.0
Switzerland 2.9 2.4 21.3
Italy 6.8 2.9 135.7
Spain (incl. franchise Madrid) 2.0 1.8 8.3
United Kingdom 5.2 2.1 146.1
Poland 0.8 1.0 -17.9
Netherlands 1.9 1.8 2.5
Portugal (franchise partner) 3.5 3.0 16.6
The profit margin in relation to the factoring volume of EUR 29.0 million
amounted to 2.24 % (9M-2009: 1.86%). This margin is based on the average
period of a factoring transaction, which was approx. 31 days (9M-2009:
approx. 31 days).
The full quarterly report for the period ended September 30, 2010 will be
published on October 28, 2010.
END of ad-hoc
Information and Explaination of the Issuer to this News:
'As part of our strategy of expanding our service range for small and
medium-sized companies, we announced a cooperation with NRW.Bank in March
2010. As a result of this cooperation, small and medium-sized companies and
the self-employed are able to claim supported funds in order to finance new
operational acquisitions via leasing in North-Rhine Westphalia. This model
has proven to be extremely successful, with more than 1,150 companies
making use of it in the first nine months of 2010. This project was made
possible by GRENKE BANK, which was also accredited by KfW-Mittelstandsbank
for the 'KfW-Startgeld' programme in March. 22 applications to this
programme have already been submitted by business start-ups, with 8
contracts concluded to date. In the first nine months of 2010, GRENKE BANK
AG - whose customer deposits perform a refinancing function for the Group -
held total deposits of EUR 120.9 million (9M-2009: EUR 107.9 million),
thereby remaining essentially unchanged as against previous year.'
commented Dr. Uwe Hack, Deputy Chairman of the Board of Directors of
GRENKELEASING AG.
Further information:
'The excellent growth in new business of 42.3 % in the first nine months of
2010 also represents a considerable increase compared with the pre-crisis
year of 2008. The new business growth - particularly in our international
markets - reflects the development described in the preliminary half-yearly
figures published by Leaseurope, the European umbrella organisation for the
leasing industry. According to these figures, the leasing markets in Europe
are recovering slowly. The European IT and office equipment segment was hit
by the 2009 crisis to a below-average extent. The exposure draft on lease
accounting in the International Financial Reporting Standards (IFRS), which
is currently the subject of debate within the leasing industry and which
would require lessees to recognise all leased assets (as a right to use on
the asset side and a corresponding payment obligation on the liability
side), only affects a small number of GRENKE customers as things stand at
present. Only those lessees with access to the stock markets via shares or
bonds are required to perform accounting in accordance with IFRS. Our
customers - small and medium-sized companies - are unlisted and hence
prepare their accounts in accordance with local accounting regulations.'
The GRENKE Group
The GRENKE Group is a broadly diversified provider of financial services
for small to medium-sized enterprises and for private retail clients.
The GRENKE Group comprises companies which operate in fourteen European
countries, all being part of the consolidated GRENKELEASING corporate
group. In addition the GRENKE Group is represented in seven further
countries in Europe by way of a franchise system. Including its franchise
partners, the GRENKE Group is represented at 20 locations in Germany and a
total of 39 locations internationally.
The range of services offered by the GRENKELEASING Group (not including
franchise partners) covers small-ticket IT leasing and factoring and -
through GRENKE BANK AG - classic online banking services.
GRENKE BANK AG has been part of the GRENKELEASING Group since the beginning
of 2009.
The bank- and vendor-independent GRENKE Group holds a leading market
position in Europe in the field of small-ticket IT leasing for products
such as PCs, notebooks, copiers, printers or software of relatively low
asset value. Its range is rounded off by Car Leasing from one of its
franchise partners.
GRENKELEASING AG is listed on the Prime Standard of the Frankfurt
Securities Exchange and is part of the SDAX.
The shares of GRENKELEASING AG are listed on the SDAX of the Frankfurt
Securities Exchange under the identification code GLJ, ISIN DE0005865901.
Information on the GRENKE Group and its products is available for download
on the Internet, at http://www.grenke.de, http://www.grenkebank.de,
http://www.grenkefactoring.de.
Should you have any queries, please contact:
Renate Hauss
Phone: +49 7221 5007-204
Fax: +49 7221 5007-112
E-mail: [email protected]
Internet http://www.grenke.de; http://www.grenkebank.de;
http://www.grenkefactoring.de
04.10.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: 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: [email protected]
Internet: www.grenke.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of Announcement DGAP News-Service
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