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Grenke AG — Earnings Release 2013
Jul 2, 2013
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Earnings Release
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Corporate | 2 July 2013 07:17
GRENKELEASING AG: New business growth of 16.7% in first half of 2013 – therefore within our forecast range of 13 to 16 %
GRENKELEASING AG / Key word(s): Miscellaneous
02.07.2013 / 07:17
New business growth of 16.7% in first half of 2013 – therefore within our forecast range of 13 to 16 %
– New business in the GRENKE Group of EUR 574.7 million in first half of 2013 – year-on-year increase of 16.7%
– Contribution margin 2 (CM2) on new business in the GRENKE Group (leasing) of EUR 95.6 million in first half of 2013. CM2 margin of 19.3%
Baden-Baden, July 02, 2013: In the first half of 2013, the volume of new business in the GRENKE Group (incl. franchise partners) – i.e. the total of the acquisition costs for newly acquired leasing assets, factoring volumes and start-up financing – amounted to EUR 574.7 million (1.HY 2012: EUR 492.3 million), corresponding to growth of 16.7%. The contribution margin 2 (CM2) on new business in the GRENKE Group (leasing) amounted to EUR 95.6 million in first half of 2013 (1.HY 2012: EUR 84.9 million, previous year’s figure adjusted). The CM2 margin was 19.3%
International business contributed a share of 66.2% to the GRENKE Group’s new business (previous year: 65.6%). In the first half of 2013, the GRENKE Group recorded a total of 151,391 leasing applications (of which 120,092 international), from which 61,011 new leasing contracts were generated (of which 45,969 international). The average value per lease contract was around EUR 8,104 and is down slightly on the previous year’s figure (1.HY 2012: EUR 8,234).
In the first half of 2013, our conversion rate (applications to leases) in the GRENKE Group (leasing) was 40%. The conversion rate on our international markets was 38%, which is therefore lower than the German market (48%). These conversion rates show that we are continuing to focus on Germany, our most important market, and are consistently pursuing our strategy of not making any concessions in our appropriate risk approach on individual international markets.
The GRENKE Group is still focused on international business and we opened three new locations in the second quarter to provide for its future expansion. Among others, we opened our fourth Swiss location in Lugano. Our sales efforts, including in Germany, are reflected in gratifying new business growth. In the first half of the year, new business (leasing) amounted to EUR 147.5 million (1.HY 2012: EUR 130.3 million), corresponding to a rise of 13.2%.
All amounts in EUR million (2012 figures adjusted)
| New business | 1.HY-2013 | 1.HY-2012 | % change |
| GRENKE Group leasing + factoring + business start-up financing including franchise partners | 574.7 | 492.3 | 16.7 |
| – of which: Germany | 194,2 | 169.4 | 14.6 |
| – of which: International | 380.5 | 322.9 | 17.9 |
| New business | 1.HY-2013 | 1.HY-2012 | % change |
| GRENKE Group leasing | 494.4 | 436.7 | 13.2 |
| – of which: International | 326.8 | 291.8 | 12.0 |
| – of which: Franchise international | 20.1 | 14.6 | 37.5 |
| – of which: Germany | 147.5 | 130.3 | 13.2 |
| Western Europe* (without Germany) | 160.8 | 137.0 | 17.4 |
| Southern Europe* | 104.1 | 97.4 | 6.8 |
| Northern- /Eastern Europe* | 71.3 | 64.5 | 10.4 |
| Other regions* | 10.9 | 7.5 | 44.0 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern- /Eastern Europe: Czech Republic, Denmark, Finland, Hungary, Ireland, Norway, Poland, Romania, Slovakia, Sweden, UK
Other regions: Brazil, Dubai, Turkey
| New business | 1.HY-2013 | 1.HY-2012 | % change |
| GRENKE Group factoring | 77.9 | 53.3 | 46.3 |
| – of which: Germany | 44.4 | 36.9 | 20.3 |
| – of which: Franchise international | 33.6 | 16.4 | 104.9 |
| GRENKE Bank | 1.HY-2013 | 1.HY-2012 | % change |
| Deposits | 248.0 | 156,2 | 58.8 |
| Business start-up financing volume | 2.4 | 2.3 | 3.2 |
At 13.5%, the GRENKE Group’s contribution margin 1 on leasing business (acquisition values) was again at an advantageous level on account of the consistently favourable refinancing environment, and amounted to EUR 66.9 million in the first half of 2013 (1.HY 2012: EUR 58.7 million).
Contribution margin 2 (CM2) on new business in the GRENKE Group (leasing) amounted to EUR 95.6 million in first half of 2013 (1.HY 2012: EUR 84.9 million, previous year’s figure adjusted). The CM2 on leasing business was 19.3% in the first half of 2013 after 19.4% in 1.HY 2012. As part of our advancing internationalisation, we have adjusted the CM2 calculation in Q1-2013 for more efficient sales management. This is based on individual contract costs during the term.
The income margin on the factoring volume of EUR 77.9 million was 2.4% (1.HY 2012: 2.4%). This margin relates to the average period of a factoring transaction of around 29 days (1.HY 2012: around 31 days).
Development of contribution margin (CM) 2 in EUR million (2012 figures adjusted)
| 1.HY-2013 | 1.HY-2012 | % change | |
| GRENKE Group leasing | 95.6 | 84.9 | 12.6 |
| – of which: International | 69.3 | 62.2 | 11.5 |
| – of which: Franchise business international | 6.7 | 3.6 | 84.6 |
| – of which: Germany | 19.6 | 19.1 | 2.5 |
| Western Europe* (without Germany) | 34.7 | 28.3 | 22.7 |
| Southern Europe* | 22.8 | 22.6 | 1.1 |
| Northern- /Eastern Europe* | 14.1 | 13.0 | 8.5 |
| Other regions* | 4.4 | 2.0 | 124.9 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern- /Eastern Europe: Czech Republic, Denmark, Finland, Hungary, Ireland, Norway, Poland, Romania, Slovakia, Sweden, UK
Other regions: Brazil, Dubai, Turkey
‘With new business growth of 16.7% we reached the upper end of our forecast range for growth of between 13% and 16% after the first half of the year and continued the development of the first quarter. Attractive CM2 margins commensurate with our risk situation are still a defining factor in growth management. There is still a clear focus on international business, but we also achieved positive new business growth of 13% on our home market Germany,’ said Wolfgang Grenke, CEO of GRENKELEASING AG, of the figures for new business.
‘The refinancing of our growth strategy is well secured. Our solid reputation on the capital market was again shown by the issue of a EUR 100 million bond in June. The bond was five times oversubscribed within an hour of opening the order book and we placed the issue with an interest coupon of 2%. The high share of international investors was particularly encouraging,’ explained Jörg Eicker, CFO of GRENKELEASING AG.
On July 25, 2013 the company is to publish the Quarterly Financial Report as per June 30, 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
02.07.2013 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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| 219372 02.07.2013 |