Grenke AG — Earnings Release 2014

Apr 29, 2014

News Details

Corporate | 29 April 2014 07:26

GRENKELEASING AG: The groundwork has been laid for a successful fiscal year – Consolidated Group’s net profit rises 26%

DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results

29.04.2014 / 07:26

---

The groundwork has been laid for a successful fiscal year - Consolidated
Group's net profit rises 26%

• An increase of 17.5% to EUR 36.2 million (previous year: EUR 30.8
  million) in net interest income in the first quarter of 2014
• Consolidated Group's net profit amounted to EUR 14.5 million in the first
  quarter of 2014 for growth of 26% compared to EUR 11.5 million in the
  previous year
• Equity ratio of 17% as per the reporting date

Baden-Baden, April 29, 2014: The positive earnings development of the
GRENKE Consolidated Group continued in the first quarter of 2014. Net
interest income in comparison to the previous year increased 17.5% to EUR
36.2 million (Q1-2013: EUR 30.8 million) as a result of the high level of
strong-margin new business generated in recent quarters and due to the
continuing favourable interest rate environment. Interest expenses for
refinancing and for the deposit business declined and totalled EUR 14.1
million after EUR 14.8 million in the first quarter of 2013.

Expenses for the settlement of claims and risk provision had a lower rise
of 9% in the first quarter of 2014: they amounted to EUR 11.8 million after
EUR 10.9 million in the previous year's quarter. Thus, the loss rate was
below the level incurred in 2013.

Net interest income after settlement of claims and risk provision climbed
22% in the first quarter of 2014 to EUR 24.4 million after EUR 19.9 million
in the same period of the prior year. Expenses for losses tend to be
volatile, especially on a quarterly basis. Due to the continuing difficult
economic situation in some of the European countries, the related risks
continue to remain.

Profit from insurance business grew 19% to EUR 9.4 million in the first
quarter of 2014 (previous year: EUR 7.9 million). Profit from new business
increased 9% to EUR 11.1 million after EUR 10.2 million in the previous
year. Profit from disposals, which is very volatile on a quarterly basis,
remained below the extraordinarily positive result of the previous year and
amounted to EUR 0.4 million after EUR 0.9 million in the first quarter of
2013. Overall, income from operating business rose 16% to EUR 45.3 million
compared to EUR 38.9 million in the prior year's period of 2013.

Our expenses reflect our high growth. Staff costs increased 8% in the first
three months and totalled EUR 13.1 million after EUR 12.1 million in the
previous year. Due to the sustained high growth of new business and in
preparation for our further expansion, there was a 23% increase to EUR 10.9
million in selling and administrative expenses compared to EUR 8.9 million
in the previous year's quarter.

The operating result exceeded the previous year's level by an impressive
20% and amounted to EUR 19.4 million after EUR 16.2 million in the previous
year's quarter. In the first quarter of 2014, the Consolidated Group's net
profit climbed 26% to EUR 14.5 million compared to EUR 11.5 million in the
first quarter of 2013. Accordingly, earning per share amounted to EUR 0.99
after EUR 0.81 in the previous year.

The equity ratio equalled 17.0% after 16.7% as per December 31, 2013 and
thus continued to be above our long-term target of a minimum of 16%.

These results were achieved by 852 employees compared to 780 employees in
Q1-2013 (full-time equivalents; not including the Board of Directors).

"The results of the first quarter of 2014 were ahead of plan and we have
accomplished a successful start in the 2014 fiscal year. We were able to
expand our income from operating business by 16% in the first quarter and
the development of our costs was shaped by the expenses customary for
expansion. Nevertheless, we were able to achieve an above-average rise of
26% to EUR 14.5 million in GRENKE Consolidated Group's net profit. We can
fully confirm our full year forecast of a net profit in the range of EUR 52
million to EUR 56 million", commented Wolfgang Grenke, Chairman of the
Board of Directors of GRENKELEASING AG, on the results.

"Strategically, we rely on diversification to limit risk, also when it
comes to financing our own growth. Through the ongoing expansion of our
already broad range of refinancing instruments, we are in a position to
take advantage of a variety of options at all times and in a flexible
manner. In early April, we placed a EUR 125 million bond with an interest
coupon of 1.625% and a term of 3.5 years. The coupon of 1.625% is the
lowest rate GRENKE has ever had to pay for a bond of this duration",
explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.

The Financial Report for the 1st Quarter 2014 can be viewed online at
www.grenke.de - INVESTOR RELATIONS - Financial Reports - Financial Reports
2014.

Should you have any queries, please contact:

Renate Hauss
Tel.: +49 7221 5007-204
Fax: +49 7221 5007-4218
E-mail: investor@grenke.de

The GRENKE Group

The GRENKE Group is a broadly diversified provider of efficient services in
Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized
companies. In addition, the GRENKE Bank offers its classic online services
also to private customers.

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 27 countries and
employs more than 900 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 at
http://www.grenke.de

End of Corporate News

---

29.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group 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: investor@grenke.de
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

265199 29.04.2014