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Grenke AG — Earnings Release 2010
Jan 4, 2011
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Earnings Release
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Corporate | 4 January 2011 07:24
GRENKELEASING AG: New business growth for 2010 clearly at upper end of our expectations – New business development in 2010
GRENKELEASING AG / Key word(s): Miscellaneous
04.01.2011 / 07:24
New business growth for 2010 clearly at upper end of our expectations
– International new business in 2010 increases by 62.8 %
– New business in the GRENKE Group amounts to EUR 693 million in 2010 – corresponding to growth of 39.4 %
– Contribution margin (CM) 2 on new business in the GRENKE Group reaches EUR 102.8 million in 2010 and, with a CM2 level of 15.6 % (leasing business), remains very high
Baden-Baden, January 4, 2011: In 2010, the volume of new business in the GRENKE Group (including franchise partners) – i.e. the sum total of acquisition costs of newly acquired leasing assets and the factoring volume – amounted to EUR 693.0 million (2009: EUR 497.1 million), corresponding to 39.4 % growth.
In the process, the GRENKE Group continued the extremely positive third quarter trend in the fourth quarter 2010 leading to a full-year growth rate clearly at the upper end of expectations. The original forecast of about 30 % in new business growth was based on the assumption of a flattening growth curve due to the very strong growth in the fourth quarter of 2009, when the Group returned to growth.
The 39.4 % increase in new business growth in 2010 at the GRENKE Group including franchise partners also represents a significant increase as compared with the pre-crisis year 2008.
The CM2 level in 2010 amounts to 15.6 % – still higher than the pre-crisis level. The number of leasing inquiries increased by 27.9 % and by an impressive 41.6 % internationally. This reflects the decreased competition intensity in individual international markets, allowing us to continue our planned new business growth while systematically limiting risk and achieving above-average profitability. The CM2 margin in the international segment recorded a rise of 41.4 % in 2010 as a whole. The international segment contributed a share of 58.4 % to the GRENKE Group's new business (previous year: 50.8 %). In particular, the growth trend remained unbroken in our largest international markets of France, Italy, and the UK.
As part of our market penetration strategy, we also carried out another cell division in Italy in the fourth quarter of 2010 and opened a branch office in Arese – our fifth location in Italy. In addition, we entered a further market by entering into a franchise agreement in Slovenia. Our 2011 growth strategy includes further cell divisions in the individual international markets and entering the markets in additional countries.
In 2010, the GRENKE Group recorded a total of 194,913 leasing inquiries (ex Germany 133,086) and of which 84,482 new leasing contracts (ex Germany 55,333) were generated. The average value per leasing contract concluded was around EUR 7,693, an increase on the previous year (2009: EUR 7,277).
The conversion rate (inquiries to contracts) amounts to 43 % for the year as a whole, but remains below our target level even though we increased the conversion rate gradually over the course of the year. The conversion rate in our international markets is still generally 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 international markets.
All figures in EUR million
| New business | 2010 | 2009 | % change |
| GRENKE Group including franchise partners* | 693.0 | 497.1 | 39.4 |
| – of which: Germany | 288.4 | 244.5 | 18.0 |
| – of which: International | 358.3 | 220.1 | 62.8 |
| – of which: Franchise international | 46.2 | 32.5 | 42.3 |
* incl. Factoring
| New business | 2010 | 2009 | % change |
| GRENKE Group leasing business | 649.9 | 453.5 | 43.3 |
| – of which: Germany | 246.5 | 200.9 | 22.7 |
| – of which: International | 358.3 | 220.1 | 62.8 |
| – of which: Franchise international | 45.1 | 32.5 | 38.8 |
| New business | 2010 | 2009 | % change |
| GRENKE Group Factoring | 43.1 | 43.6 | -1.2 |
| – of which: Germany | 41.9 | 43.6 | -3.9 |
| – of which: Franchise international (CH) | 1.1 | n.a. | n.a. |
| GRENKE BANK | 2010 | 2009 | % change |
| Deposits per December 31, 2010 | 122.2 | 106.4 | 14.9 |
| Business start-up financing volume | 0.3 | n.a. | n.a. |
New business from leasing by international markets in EUR million
| 2010 | 2009 | % change | |
| France | 148.4 | 96.1 | 54.4 |
| Switzerland | 17.6 | 14.4 | 22.7 |
| Italy | 71.6 | 27.8 | 157.9 |
| Spain (incl. franchise Madrid) | 17.0 | 15.7 | 8.1 |
| United Kingdom | 36.2 | 15.1 | 139.6 |
| Poland | 9.6 | 11.3 | -15.0 |
| Netherlands | 13.9 | 11.6 | 20.2 |
| Portugal (franchise partner) | 24.2 | 18.8 | 28.4 |
The CM1 level of the GRENKE Group's leasing operations (contribution margin 1 at acquisition values), at 10.7 % in 2010, exceeded our target margin of 10 %, reaching a value of EUR 69.3 million (2009: EUR 59.9 million – comparative figure for leasing operations). The corresponding CM2 amounts to EUR 101.6 million, up by 19.2 % year-on-year.
Development of contribution margin 2 (CM2) in EUR million
| 2010 | 2009 | % change | |
| GRENKE Group including franchise partners* | 102.8 | 85.8 | 19.8 |
| – of which: Germany | 33.8 | 36.3 | -6.8 |
| – of which: International | 60.4 | 42,7 | 41.4 |
| – of which: Franchise business international | 8.6 | 6.8 | 26.4 |
* incl. Factoring
| 2010 | 2009 | % change | |
| GRENKE Group leasing business | 101.6 | 85.3 | 19.2 |
| – of which: Germany | 32.6 | 35.7 | -8.8 |
| – of which: International | 60.4 | 42,7 | 41.4 |
| – of which: Franchise business international | 8.6 | 6.8 | 26.4 |
| 2010 | 2009 | % change | |
| France | 26.0 | 20.0 | 30.5 |
| Switzerland | 3.7 | 3.1 | 18.1 |
| Italy | 9.8 | 4.4 | 121.9 |
| Spain (incl. franchise Madrid) | 2.6 | 2.7 | -2.7 |
| United Kingdom | 7.1 | 3.0 | 135.7 |
| Poland | 1.0 | 1.4 | -25.4 |
| Netherlands | 2.7 | 2.4 | 9.3 |
| Portugal (franchise partner) | 4.8 | 4.2 | 13.2 |
The profit margin in relation to the factoring volume of EUR 43.1 million amounted to 2.3 % (2009: 1.95 %). This margin relates to the average period of a factoring transaction, amounting to approximately 31 days (2009: approximately 32 days).
'Our growth is built upon our high equity ratio and an extremely strong financing base. We grew our refinancing basis again in the fourth quarter of 2010. We signed an additional asset-backed commercial paper (ABCP) programme with UniCredit for our French lease receivables. These factors plus the confirmation of our issuer rating of BBB+ with a stable outlook and the fact that we have no significant maturities of bonds in 2011 mean that everything is in place to take advantage of growth-opportunities in 2011. We will continue to implement our usual expansion strategy of acquiring new franchise partners and dividing cells in international locations in 2011. What is more, our growth prospects in 2011 are especially favourable under the current competitive conditions and due to our good liquidity position', explained Dr. Uwe Hack, Deputy Chairman of the Board of Directors of GRENKELEASING AG.
The company will publish its 2010 audited consolidated financial statements on February 10, 2011.
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
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 eight further countries in Europe by way of a franchise system. Including its leasing franchise partners and its factoring franchise partner in Switzerland, the GRENKE Group is represented at 20 locations in Germany and a total of 41 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 .
End of Corporate News
04.01.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| 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 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
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| 108079 04.01.2011 |