AI assistant
Grenke AG — Earnings Release 2013
Apr 3, 2013
189_rns_2013-04-03_37d9bc78-4811-4558-a2d3-1d488cdced70.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 3 April 2013 07:37
GRENKELEASING AG: New business growth of 14.9% in the first quarter of 2013 in line with expectations
GRENKELEASING AG / Key word(s): Miscellaneous
03.04.2013 / 07:37
New business growth of 14.9% in the first quarter of 2013 in line with expectations
– New business in the GRENKE Group of EUR 275.6 million in the first quarter of 2013 – year-on-year increase of 14.9%
– Contribution margin (CM) 2 of the new business of the GRENKE Group (leasing) amounted to EUR 46.8 million in the first quarter of 2013. The CM2 margin is 19.6%
Baden-Baden, April 3, 2013: In first quarter of 2013, the volume of new business in the GRENKE Group (incl. franchise partners) – i.e. the sum total of acquisition costs of newly acquired leasing assets, the factoring volume and business start-up financing – amounted to EUR 275.6 million (Q1-2012: EUR 240 million), corresponding to 14.9% growth. We have adjusted the CM2 calculation for more efficient sales management and as part of our internationalisation. The contribution margin 2 of the new business of the GRENKE Group (leasing) amounted to EUR 46.8 million in the first quarter of 2013 (Q1-2012: EUR 42.5 million, previous year’s figure adjusted). The CM2 margin is 19.6%.
The international segment contributed a share of 66.7% to the GRENKE Group’s new business (previous year: 64.9%). In the first quarter of 2013, the GRENKE Group recorded 76,404 lease applications (of which 60,770 were international), of which 30,002 new leases (of which 22,832 were international) were generated. The average value per leasing contract concluded came to approx. EUR 7,980 and is down on the previous year’s figure (Q1-2012: EUR 8,270).
In the first quarter of 2013, our conversion rate (applications to leases) in the GRENKE Group (leasing) was 39%. The conversion rate on our international markets was 38%, which is lower than the German market 46%. These conversion rates make it clear 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 growth trend also continued in the first quarter in France, our second-largest market, with new business (leasing) growth of 16.4% to EUR 58.7 million (Q1-2012: EUR 50.5 million). In Switzerland, new business growth amounted to 43.3%, which equates to EUR 7.5 million (Q1-2012: EUR 5.2 million).
All figures in EUR million
| New business | Q1-2013 | Q1-2012 | % change |
| GRENKE Group leasing + factoring + business start-up financing including franchise partners | 275.6 | 240.0 | 14.9 |
| – of which: Germany | 91.7 | 84.2 | 9.0 |
| – of which: International | 183.9 | 155.8 | 18.1 |
| New business | Q1-2013 | Q1-2012 | % change |
| GRENKE Group leasing | 239.4 | 214.4 | 11.7 |
| – of which: Germany | 69.5 | 65.4 | 6.3 |
| – of which: International * | 160.2 | 143.7 | 11.5 |
| – of which: Franchise international | 9.8 | 5.4 | 82.8 |
New business group (leasing) by regions*
| Q1-2013 | Q1-2012 | % change | |
| Western Europe (without Germany) | 79.8 | 66.3 | 20.3 |
| Southern Europe | 50.8 | 48.6 | 4.5 |
| Northern- /Eastern Europe | 34.2 | 31.9 | 7.4 |
| Other regions | 5.2 | 2.3 | 128.2 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern- /Eastern Europe: Bulgaria, Czech Republic, Denmark, Finland, Hungary, Ireland, Norway, Poland, Romania, Slovakia, Sweden, UK
Other regions: Turkey, Brazil
| New business | Q1-2013 | Q1-2012 | % change |
| GRENKE Group factoring | 35.3 | 24.5 | 43.8 |
| – of which: Germany | 21.3 | 17.8 | 19.8 |
| – of which: Franchise international | 14.0 | 6.8 | 106.8 |
| GRENKE Bank | Q1-2013 | Q1-2012 | % change |
| Deposits | 1.0 | 1.0 | -7.5 |
| Business start-up financing volume | 1.0 | 1.0 | -7.5 |
The CM1 level of the GRENKE Group’s leasing operations (contribution margin 1 at acquisition values), increased to 14.2% in the first quarter of 2013 due to the continued favourable refinancing environment, reaching a value of EUR 33.9 million (Q1-2012: EUR 29.6 million).
As part of the adaptation of sales management, the allocation of variable administration expenses and/or unit costs projected in our contribution margin 2 was refined. This resulted in a detailed separation of costs into costs attributable to the lease during the contract term (cost of current contracts) and costs not clearly attributable to the individual contract based on their source. The new calculation is based solely on individual contract costs during the term, which takes account of more precise sales management and the nature of the contribution margin as a ratio. In particular, the previous calculation included management costs in the respective national companies and branches in the CM2. We publish this data regularly in our key figures in the quarterly report.
The contribution margin 2 of the new business of the GRENKE Group (leasing) amounted to EUR 46.8 million in the first quarter of 2013 (Q1-2012: EUR 42.5 million, previous year’s figure adjusted). The contribution margin 2 on leasing business was 19.6% in the first quarter of 2013 after 19.8% in Q1-2012.
The profit margin on the factoring volume of EUR 35.3 million amounted to 2.28% (Q1-2012: 2.27%). This margin relates to the average period of a factoring transaction, amounting to approx. 29 days (Q1-2012: approx. 26 days).
Development of contribution margin (CM) 2 in EUR million (previous year’s figures adjusted)
| Q1-2013 | Q1-2012 | % change | |
| GRENKE Group leasing | 46.8 | 42.5 | 10.1 |
| – of which: Germany | 8.8 | 10.0 | -12.2 |
| – of which: International * | 34.8 | 31.4 | 10.6 |
| – of which: Franchise business international | 3.3 | 1.1 | 194.6 |
Contribution margin 2 group (leasing) by regions*
| Q1-2013 | Q1-2012 | % change | |
| Western Europe (without Germany) | 17.3 | 14.1 | 23.1 |
| Southern Europe | 11.6 | 11.5 | 0.6 |
| Northern- /Eastern Europe | 7.0 | 6.6 | 5.9 |
| Other regions | 2.2 | 0.4 | 465.0 |
*Regions:
Western Europe (without Germany): Austria, Belgium, France, Luxembourg, Netherlands, Switzerland
Southern Europe: Italy, Malta, Portugal, Slovenia, Spain
Northern- /Eastern Europe: Bulgaria, Czech Republic, Denmark, Finland, Hungary, Ireland, Norway, Poland, Romania, Slovakia, Sweden, UK
Other regions: Turkey, Brazil
Since 2003, GRENKE has established a franchise model to tap into new regional markets and to expand with new financing products. In 2006, GRENKE gained Kazenmaier Fleetservice GmbH – a leading vehicle leasing company in southwest Germany – as a franchise partner. The objective was to complement our direct business in southern Germany as part of the product development strategy. As the hoped-for synergies were not generated to the extent expected, it seemed to both partners that a mutual dissolution of all contractual obligations from the middle of the year would be expedient and logical. This course of action has had no impact on the business results of either partner. From a strategic point of view, GRENKE will continue to concentrate on its key area of expertise, small-ticket IT leasing.
‘GRENKE Bank gives us the opportunity to collaborate with different development banks of individual German states. In 2010, we agreed the first of these partnerships with NRW.BANK in Dusseldorf. The goal is to allow small and medium-sized companies as well as self-employed professionals access to development funds in order to finance new investments via leasing. After the successful launch and the continuation in 2011, the third such cooperation was agreed in March 2013. NRW.BANK is providing another EUR 15 million in development funds as part of the global loan. Since the start of the cooperation, a total of 5,198 leasing contracts have been concluded’, said Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG.
‘The decision made under our franchise model regarding Kazenmaier Fleetservice on the basis of low synergies underlines our orientation to our key area of expertise. The objective of the franchise model, accelerated entry in new countries with an entrepreneurial franchise partner who knows the target market well, has succeeded so far in markets including the UK, Spain and Portugal, which we have since integrated into the Group. We have also been active outside Europe since the 2012 financial year with the conclusion of a franchise agreement for Brazil. In addition, we signed a franchise agreement for factoring in the UK in the first quarter of 2013’, explained Jörg Eicker, CFO of GRENKELEASING AG.
On April 25, 2013 the company is to publish the Quarterly Financial Report as per March 31, 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 25 countries and employs more than 700 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
03.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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 | |
| 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 |
| - - - |
| 205811 03.04.2013 |