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Grenke AG — Earnings Release 2013
Oct 2, 2013
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Earnings Release
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Corporate | 2 October 2013 07:22
GRENKELEASING AG: GRENKE’s growth in new business of 16.7% in the first nine months of 2013 fully on track
GRENKELEASING AG / Key word(s): Miscellaneous
02.10.2013 / 07:22
GRENKE’s growth in new business of 16.7% in the first nine months of 2013 fully on track
– GRENKE Group’s new business in the first nine months of 2013 amounted to EUR 851.8 million – a year-on-year increase of 16.7%
– Contribution margin 2 (CM2) of EUR 137.9 million on GRENKE Group Leasing’s new business in the first nine months of 2013. The CM2 margin amounted to 19.1%
Baden-Baden, October 02, 2013: In the first nine months of 2013, the volume of new business in the GRENKE Group (incl. franchise partners) – i.e. the total of the acquisition costs of newly purchased lease assets, factoring volume, and business start-up financing – amounted to EUR 851.8 million (9M-2012: EUR 730.0 million), corresponding to growth of 16.7%. The contribution margin 2 on new business in the GRENKE Group Leasing amounted to EUR 137.9 million in the first nine months of 2013 (9M-2012: EUR 125.3 million, previous year’s figure adjusted). The CM2 margin was 19.1%.
International business contributed 65.8% to the GRENKE Group’s new business (previous year: 65.2%). In the first nine months of 2013, the GRENKE Group recorded a total of 217,584 lease applications (of which 170,664 were international), and generated 88,402 new lease contracts (of which 65,941 were international). The mean term per lease contract was approximately EUR 8,148 and is down slightly from the previous year’s figure (9M-2012: EUR 8,328).
In the first nine months of 2013, our conversion rate (applications into contracts) in the GRENKE Group (Leasing) was 41%. The conversion rate on our international markets was 39%, which is therefore lower than the conversion rate on the German market (48%). These conversion rates illustrate the focus on the German domestic market and the consistent pursuance of our strategy of not making any concessions in our risk approach on individual international markets.
In addition to penetrating new markets we are also intensifying the proximity to our customers by along our ‘cell division’ strategy. In the third quarter, we opened new locations in Belgium, UK, and Austria, and pushed forward our preparations for new openings in Canada in the fourth quarter.
All amounts in EUR million (2012 figures adjusted)
| New business | 9M-2013 | 9M-2012 | % change |
| GRENKE Group leasing + factoring + business start-up financing including franchise partners | 851.8 | 730.0 | 16.7 |
| – of which: Germany | 291.5 | 253.8 | 14.9 |
| – of which: International | 560.3 | 476.2 | 17.7 |
| New business | 9M-2013 | 9M-2012 | % change |
| GRENKE Group leasing | 720.3 | 640.7 | 12.4 |
| – of which: International | 485.2 | 432.1 | 12.3 |
| – of which: Franchise international | 18.2 | 15.9 | 14.4 |
| – of which: Germany | 216.9 | 192.7 | 12.6 |
| Western Europe* (without Germany) | 231.4 | 198.4 | 16.6 |
| Southern Europe* | 152.2 | 139.1 | 9.4 |
| Northern/Eastern Europe* | 107.1 | 98.2 | 9.1 |
| Other regions* | 12.7 | 12.3 | 2.9 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK / Czech Republic, Hungary, Poland, Romania, Slovakia,
Other regions: Brazil, Dubai, Turkey
| New business | 9M-2013 | 9M-2012 | % change |
| GRENKE Group factoring | 127.0 | 85.2 | 49.1 |
| – of which: Germany | 70.1 | 57.0 | 22.9 |
| – of which: Franchise international | 56.9 | 28.2 | 102.1 |
| GRENKE Bank | 9M-2013 | 9M-2012 | % change |
| Deposits | 246.4 | 190.9 | 29.1 |
| Business start-up financing volume | 4.5 | 4.0 | 11.5 |
At 13.4%, the GRENKE Group’s CM1 margin on leasing business (contribution margin 1 at acquisition values) was at an attractive level on account of the continued favourable refinancing environment, and amounted to EUR 96.2 million in the first nine months of 2013 (9M-2012: EUR 86.4 million).
The contribution margin 2 on new business in the GRENKE Group Leasing amounted to EUR 137.9 million in the first nine months of 2013 (9M-2012: EUR 125.3 million, previous year’s figure adjusted). The CM2 margin on leasing business was 19.1% in the first nine months of 2013 after 19.6% in the first nine months of 2012. As part of our internationalisation and for an even more efficient sales management, we have modified the CM2 calculation in Q1-2013. The new calculation is based on individual contract costs during the term.
The income margin on the factoring volume of EUR 127.0 million was 2.3% (9M-2012: 2.3%). This margin is based on an average period of a factoring transaction of approximately 24 days (9M-2012: approximately 33 days).
Development of contribution margin (CM) 2 in EUR million (2012 figures adjusted)
| 9M-2013 | 9M-2012 | % change | |
| GRENKE Group leasing | 137.9 | 125.3 | 10.1 |
| – of which: International | 102.2 | 92.5 | 10.5 |
| – of which: Franchise international | 6.4 | 4.2 | 50.5 |
| – of which: Germany | 29.3 | 28.5 | 2.8 |
| Western Europe* (without Germany) | 49.7 | 41.3 | 20.3 |
| Southern Europe* | 32.8 | 32.1 | 2.1 |
| Northern/Eastern Europe* | 21.1 | 19.9 | 6.2 |
| Other regions* | 4.9 | 3.4 | 44.9 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK / Czech Republic, Hungary, Poland, Romania, Slovakia,
Other regions: Brazil, Dubai, Turkey
‘With new business growth of 16.7% to EUR 851.8 million in the GRENKE Group in the first nine months of 2013, we are fully on track to reach our full-year outlook of growth of between 13% and 16%. In Germany, the positive trend continued with leasing new business growth of 12.6%. Given our already high penetration in this market, this is a very favourable result. In Western Europe, we achieved growth of 16.6%, primarily driven by France and Switzerland. We continued to generate attractive and risk-adequate CM2 margins, which remain the focus of our new business management. For our future expansion we opened new locations in the third quarter and we pushed forward our planned market entry in Canada in the fourth quarter’, commented Wolfgang Grenke, GRENKELEASING AG’s Chairman of the Board of Directors, with regard to the new business figures.
‘GRENKE Bank allows us to cooperate with the development banks of German federal states. Last year, we agreed on a collaboration with Thüringer Aufbaubank in Erfurt. Following the successful start, the collaboration now continues by way of a second global loan in the amount of EUR 5 million. The aim is to provide small and medium sized companies as well as self-employed professionals access to development funds when they finance business investments through lease financing. Similar collaborations are already in place with LfA Förderbank Bayern, Investitionsbank Berlin (IBB), and NRW.BANK in North Rhine-Westphalia. In total, we have already concluded more than 7,800 leasing contracts with small and medium sized companies and self-employed professionals’, explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.
On October 24, 2013 the Company will publish a detailed Financial Report for the 3rd Quarter and the first nine months of 2013.
Should you have any queries, please contact:
Renate Hauss
Tel.: +49 7221 5007-204
Fax: +49 7221 5007-4218
E-mail: [email protected]
Internet: http://www.grenke.de, http://grenkeleasing.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 and medium-sized companies and private customers.
The range of services offered by the GRENKE Group covers small-ticket IT leasing and factoring and – through GRENKE Bank – traditional online banking services.
The GRENKE Group is independent of vendors and banks and 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. The GRENKE Group operates in 26 countries and employs more than 800 staff.
GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN DE0005865901.
Information on the GRENKE Group and its products is available on the Internet at http://www.grenke.de, http://www.grenkeleasing.de , http://www.grenkebank.de, and http://www.grenkefactoring.de.
End of Corporate News
02.10.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
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| Language: | English |
| Company: | GRENKELEASING AG |
| Neuer Markt 2 | |
| 76532 Baden-Baden | |
| Germany | |
| Phone: | +49 (0)7221 50 07-204 |
| Fax: | +49 (0)7221 50 07-4218 |
| E-mail: | [email protected] |
| Internet: | www.grenke.de |
| ISIN: | DE0005865901 |
| WKN: | 586590 |
| Indices: | SDAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
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| 233001 02.10.2013 |