Grenke AG — Earnings Release 2014

Jan 5, 2015

News Details

Corporate | 5 January 2015 07:31

GRENKELEASING AG: New business growth in 2014 of 13.9% – within our forecast range of 13-16%

GRENKELEASING AG / Key word(s): Miscellaneous

05.01.2015 / 07:31

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New business growth in 2014 of 13.9% – within our forecast range of 13-16%

– GRENKE Group’s new business in 2014 totalled EUR 1,352.9 million – a rise of 13.9% compared to the previous year

– The contribution margin (CM) 2 of GRENKE Group’s new business reached EUR 221.2 million in 2014. The CM2 margin totalled 19.3% (Leasing segment)

Baden-Baden, January 5, 2015: In 2014, the new business volume of the GRENKE Group (including 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 1,352.9 million (2013: EUR 1,188.2 million), corresponding to growth of 13.9%. With this successful conclusion to the year 2014, we were within our forecast range of 13-16%.

The contribution margin 2 of GRENKE Group’s new business reached EUR 221.2 million in 2014 (2013: EUR 193.2 million) amounting to a rise of 14.5%. The CM2 margin of the leasing business in 2014 was 19.3% (2013: 19.0%). The CM1 margin (contribution margin 1 at acquisition values) totalled 13.7% in 2014 and reached a value of EUR 154.8 million (2013: 13.4% or EUR 133.2 million). This attractive contribution margin can be attributed to the consistent pursuance of our business model, our effective penetration of the market, and a favourable interest rate environment.

Due to our growth in international markets, the international share of the GRENKE Group’s new business rose to 70.1% in 2014 after amounting to 66.3% in the previous year.

In France, our largest international market which has since become our second home market, we reported growth of 23.2% in this past fiscal year. In our other key markets, Italy (25.6% growth) and the United Kingdom (22.8% growth), the growth trend also continued.

As part of our cell-division strategy, we opened three further locations in France in the cities of Reims, Tour, and Dijon and are now present in that country with a total of 16 locations. In the Netherlands, we opened our third location in Amsterdam. With the completion of seven cell divisions in 2014, we now have 26 locations in Germany and an additional 82 locations internationally. In the fourth quarter of 2014, we entered two new markets by concluding franchise contracts in Chile and Croatia. Chile is now our second market in South America.

In 2014, the GRENKE Group recorded 318,809 lease applications (256,910 thereof were international), which generated 138,775 new lease contracts (107,793 thereof were international). The mean term per lease contract amounted to EUR 8,163 and was virtually unchanged compared to the previous year’s level (2013: EUR 8,199).

In 2014, the GRENKE Group’s (Leasing segment) conversion rate (applications into contracts) was 44%. The conversion rate in our international markets was 42%, which was lower than the rate in the German market (50%).

In the Factoring segment, we achieved an increase in factoring volume of 16.4%. The income margin on factoring volume of EUR 208.8 million amounted to 2.0% (2013: 2.3%). This margin is based on the average period for a factoring transaction of approximately 34 days (2013: approximately 36 days).

GRENKE Bank’s business start-up financing developed very positively by rising 72.2% in comparison to the previous year and attained a volume of EUR 11.3 million.

All amounts in EUR million (previous year’s figures have been adjusted)

New business	2014	2013	% change
GRENKE Group leasing + factoring + business start-up financing including franchise partners	1,352.9	1,188.2	13.9
– of which: Germany	404.2	400.7	0.9
– of which: International	948.7	787.6	20.5

New business	2014	2013	% change
GRENKE Group leasing	1,132.8	1,002.3	13.0
– of which: International	826.5	686.9	20.3
– of which: Franchise international	20.2	20.0	1.0
– of which: Germany	286.1	295.3	-3.1
Western Europe* (without Germany)	389.9	319.5	22.1
Southern Europe*	264.1	220.8	19.6
Northern/Eastern Europe*	179.6	152.1	18.1
Other regions*	13.0	14.6	-11.1

New business	2014	2013	% change
GRENKE Group factoring	208.8	179.4	16.4
– of which: Germany	106.8	98.8	8.1
– of which: International	70.8	67.7	4.5
– of which: Franchise international	31.2	12.9	142.4

GRENKE Bank	2014	2013	% change
Deposits	300.4	255.6	17.5
Business start-up financing volume	11.3	6.6	72.2

Development of contribution margin 2 in EUR million (previous year’s figures have been adjusted)

	2014	2013	% change
GRENKE Group leasing	218.4	190.2	14.9
– of which: International	173.5	14.0	21.4
– of which: Franchise international	4.3	6.8	-36.8
– of which: Germany	40.6	40.4	0.5
Western Europe* (without Germany)	78.9	68.1	16.0
Southern Europe*	60.4	46.7	29.4
Northern/Eastern Europe*	36.0	29.7	21.4
Other regions*	2.5	5.4	-53.1

*Regions:

Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The Netherlands, Switzerland

Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain

Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK / Czech Republic, Hungary, Poland, Romania, Slovakia

Other regions: Brazil, Canada, Chile, Dubai, Turkey

“With growth of 13.9% in 2014, we have completed the year successfully. In addition to our geographic diversification, we continue to consistently broaden our product range and focus on the benefits to our customers and their requirements. Therefore, in cooperation with German guarantee banks, we have been offering small and medium-sized businesses the opportunity to apply for so-called lease guarantees since September 2014. The aim of these offers is to facilitate access to larger lease investments, especially for young companies. Ultimately, it is the SMEs that form the cornerstone of our economy”, commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, with regard to the new business figures.

“In 2014, we continued to expand our sources of refinancing and relied on a broad range of instruments. For the first time, we issued promissory note loans denominated in Swiss francs. Our strong position in the market was evidenced by our placement of a EUR 125 million bond in November with a low interest coupon of 1.5% and a duration of 4.5 years. Once again, the bond was oversubscribed and addressed a broad international investor base. As part of our refinancing strategy, the deposit volume of GRENKE Bank also grew sharply by 17.5%”, stated Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG.

On February 10, 2015 the company is to publish the Annual Financial Report as per December 31, 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

Internet: http://www.grenke.de, http://www.grenkeleasing.de, http://www.grenkebank.de, http://www.grenkefactoring.de

The GRENKE Group

The GRENKE Group is a broadly diversified provider of IT-based 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 29 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

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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:	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

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