Grenke AG — Interim / Quarterly Report 2009

Apr 30, 2009

GRENKELEASING AG GROUP QUARTERLY FINANCIAL REPORT AS PER march 31, 2009

KEY FIGURES	2
LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS	3
THE GRENKELEASING AG SHARE	4
Development of the Share Price and Daily Turnover	5
Directors' Holdings	6
Shareholder Structure	6
GRENKE GROUP GROWTH STRATEGY	7
Expansion in Europe	8
GRENKE Group Locations in Europe	9
INTERIM MANAGEMENT REPORT	10
Economic Environment	10
Report on the Results of Operations	10
Report on the Financial Position and Net Assets	12
Report on Forecasts and the Outlook for the Group	13
INTERIM FINANCIAL STATEMENTS	16
SELECTED EXPLANATORY NOTES	25
THE BOARD OF DIRECTORS OF GRENKELEASING AG	34
THE SUPERVISORY BOARD OF GRENKELEASING AG	35
OVERVIEW OF THE GROUP	36
THE GRENKELEASING FRANCHISE SYSTEM	37
THE GRENKEFACTORING GMBH	38
GLOSSARY	39
CALENDAR OF EVENTS 2009 AND CONTACT	44

KEY FIGURES

	Jan 1 to Mar. 31, 2009	% Change	Jan 1 to Mar. 31, 2008	Units
Key figures of GRENKE Group incl. franchise partners
New business of GRENKE Group	118,575	-10.2	131,990	EURk
– of which: Germany	64,333	-7.3	69,419	EURk
– of which: International	54,242	-13.3	62,571	EURk
New business of franchise partners	24,331	34.9	18,038	EURk
– of which: Factoring business (Germany)	14,044	19.5	11,752	EURk
Deposits bank	56,704	n.a.	0	EURm
Key figures of GRENKE Group leasing business excl. factoring / bank
New business GRENKE Group leasing business	104,531	-13.1	120,238	EURk
Contribution margin 2 of new business	19,875	12.8	17,613	EURk
Number of new contracts	14,239	-10.8	15,968	units
Share of IT products in the lease portfolio	84	-2.3	86	percent
Share of corporate customers in the lease portfolio	100	0.0	100	percent
Mean acquisition value	7.3	-2.7	7.5	EURk
Mean term of contract	46	1.4	45	months
Volume of leased assets	1,684	9.0	1,545	EURm
Number of current contracts	221,499	7.7	205,727	units
GRENKELASING AG Group, consolidated figures
Net interest income	18,399	11.0	16,572	EURk
Settlement of claims and risk provision	6,836	37.9	4,957	EURk
Profit from insurance business	5,063	3.0	4,917	EURk
Profit from new business	6,024	0.3	6,004	EURk
Profit from disposal (income exceeding the calculated residual value)	120	-86.8	908	EURk
Result from currency translation difference	361	-183.6	-432	EURk
Other operating income	912	264.8	250	EURk
Costs of new contracts	3,120	-14.1	3,631	EURk
Costs of current contracts	1,412	15.3	1,225	EURk
Project costs and basic distribution costs	4,588	32.8	3,455	EURk
Management costs	3,261	47.8	2,206	EURk
Other costs	804	-48.7	1,567	EURk
EBIT (Earnings before interest and taxes)	10,493	-6.1	11,178	EURk
Other interest result	-77	-741.7	12	EURk
Income/ Expenses from market valuation of financial instruments	-203	n.a.	0	EURk
EBT (Earnings before taxes)	10,213	-8.7	11,190	EURk
Net profit for the period	7,206	-8.6	7,881	EURk
Earnings per share	0.53	-8.6	0.58	EUR
Dividend	0.60	0.0	0.60	EUR
Embedded Value of the lease portfolio (incl. Equity before taxes)	352	6.0	332	EURm
Embedded Value of the lease portfolio (incl. Equity after taxes)	323	6.3	304	EURm
Cost-Income-Ratio	55.9	6.3	52.6	percent
Return on equity (ROE) after taxes	11.5	-14.8	13.5	percent
Average number of employees	502	5.9	474	persons

Explanation of ratios on page 39et seq.

LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear shareholders, dear ladies and gentlemen,

The GRENKE Group has adapted to the significant changes in the general economic environment and has adjusted the parameters for corporate management. We wish to and will remain successful, even under difficult conditions. Although there are now indicationsthat the downwards trend in the international banking system is at least slowing, the economic outlook has worsened considerably since the beginning of the year. In this situation, the GRENKE Group's top priorities are ensuring the profitability of new business, as well as securing liquidity and strengthening the balance sheet.

These current cornerstones for management were already clearly visible in the first quarter of 2009. As early as the middle of 2008, we began to increase considerably the contribution margins in order to provide for increasing defaults. The effects of this can already be seen in the reporting quarter, where the significant increase in losses was entirely offset by an improvement in net interest income, with the result that the net interest income after claims achieved the level of the previous year.

In viewof the continuing deterioration of macroeconomic activity, we actively reduced the GRENKE Group's new business including franchise partners by 10.2 percent to EUR 118.6 million in the reporting quarter. However, at the same time we also increased the contribution margin 2 (CM2) by 12.9 percent to a record level of EUR 20.0 million. This accordingly resulted in the desired positive effect on the balance sheet and liquidity. The amount of cash and cash equivalents increased significantly to EUR 112.9 million, while the equity ratio maintained its high level despite the realisation of an acquisition. When total assets are adjusted to account for liquid funds, the equity ratio even shows a slight increase against year-end 2008. Two maturing bonds with a total volume of EUR 125 million on April 20, 2009 will have been repaid on schedule by the time this quarterly report has been published.

The inquiries which we receive show that in weak periods for the general economy, leasing is more in demand than ever. The number of inquiries received in the GRENKE Group including franchise partners rose by 7.4 percent from 33,852 in the previous year to 36,353, with those in our international markets even increasing by 17.4 percent, from 18,196 to 21,366. However, we currently consistently turn down those inquiries which do not meet our CM2 requirements or which do not match our risk profile, with the effect that our acceptance ratio at the GRENKE Group dropped from 47.2 percent (15,968 new contracts) in the previous year to 39.2 percent (14,239 new contracts) in the reporting quarter. In our international markets, the acceptance ratio even decreased from 46.5 percent (8,462 new contracts) in the previous year to 35.1 percent (7,504 new contracts).

The Group's strategic development also saw further progress during the reporting quarter. For example, we implemented the first cell division in Poland with the opening of a branch in Warsaw. In addition, we acquired a Hamburg-based bank which has a strong position in deposits business and thereby contributes to further broadening our Group's refinancing sources. It will initially expand its business on the refinancing side and in the medium term it is intended to make us a specialised partner for small and medium-sized businesses for their banking and financial services product needs. Through this, we are continuing to implement rigorously our product development strategy and to open up new opportunities for growth, including in our established regional markets.

Baden-Baden, April 2009

WolfgangGrenke Chairman of the Board of Directors

THE GRENKELEASING AG SHARE

The share price of GRENKELEASING AG is evidencing an upwards trend for the first three months of fiscal year 2009. At the beginning of the year the share was quoted at EUR 18.80 and on March 31 it was at EUR 21.0. With a 11.7 percent price increase, it was thus considerably above its benchmark indices since,whereas the GRENKELEASING AG share did not fall below its price for the beginning of the year at any point, both the SDAX Index and the DAX Financial Services Index, which consists of the German financial securitieslisted in the Prime Standard, decreased considerably from the second week of January until the beginning of March. The previous decrease in price was not reversed in the recovery period which has since begun.

Both indices were thus below their levels for the beginning of the year – by 16.6 and 17.1 percent respectively – at the end of the quarter. The sustained global financial markets crisis and increasing fears of recession were again clearly reflected in these indices, whereas the GRENKELEASING AG share benefited from the company's favourable individual development. The positive development in the share price even accelerated up until the third week of April: on April 21 it was quoted at EUR 23.70, slightly under the recently achieved highest level for the year –a 26.1 percent rise as against the beginning of the year. At this point, the reference indices still had not reached their levels for the beginning of the year.

The striking outperformance by the GRENKELEASING AG share in 2008 thus continued in the new year,too and again represents a very positive result. This shows that the GRENKE Group's business model and business development continue to be very positively received on the stock market and that market can differentiate clearly between general economic development and individual company success.

Positive estimates by analysts were confirmed after our report on new business for the first quarter. As at April 21, 2009, there were four "Buy" / "Overweight" recommendations and four "Hold" recommendations, but only one "Sell" and one "Underweight" recommendation in the Reuters Consensus Estimates. On average, the analysts set their price target at EUR 22.88. The convincing nature of GRENKELEASING's business model and our capital market communication building on this, as well as the proven success of our international expansion strategy, continue to support the share's fundamental valuation.

DEVELOPMENT OF THE SHARE PRICE AND DAILY TURNOVER

DIRECTORS' HOLDINGS

Shares held by managing board members
	Wolfgang Grenke	Thomas Konprecht	Mark Kindermann	Michael Kostrewa	Dr. Uwe Hack
	Units	Units	Units	Units	Units
Status as per March 31, 2009	4,916,619	330,730	52,053	27,500	5,000
Shares held by supervisory board members
	Prof. Dr. Ernst-	Dieter	Erwin
	Moritz Lipp	Münch	Staudt
	Units	Units	Units
Status as per March 31, 2009	21,000	75	1,000

SHAREHOLDER STRUCTURE

GRENKE GROUP GROWTH STRATEGY

Our business model is also sustainable in weak periods for the general economy. We are currently focussing more intensively on the profitability of new business and are actively renouncing growth for this purpose. We are also reviewing possibilities for expansion though opening new locations in international markets particularly carefully and only implement them where there are above-average business opportunities. In addition, we are continuing our strategic development as before.

Our business model includes in particular safeguarding our profitability by measuring the inherent risks of lease contracts and either taking sufficient account of these risks in our prices or choosing not to enter into contracts with high average expected default rates. This is one of GRENKELEASING's core competences, for which we have established a successful track record over many years.

In this way we ensure a consistently high return on equity together with a strong equity base, even though there are greater fluctuations around our target level –particularly on a quarterly basis –in times of volatile developments in the economy as a whole and on the financial markets. Through this quality and stability oriented management of our profitability and balance sheet, we have achieved a high rating and thus have access to a wide range of refinancing instruments on the capital market.

In the reporting quarter, we expanded our positioning through the acquisition of the private bank Hesse Newman & Co. AG, which has a strong position in the deposits business. We thus expanded our refinancing range with another interesting instrument. We are currently positioning this new product intensively with our extensive existing customer base.

In the future, we intend to offer a wide range of specialised banking and financial services products for our small and mediumsized corporate customers, which should cover their typical needs as comprehensively as possible. Here, the focus is still on products which are suitable for indirect sale / which customers process independently on the internet, as well as on small-ticket contracts, meaning that we will continue with a broad diversification and thus also limit the risks of our financing contracts in the future. We will thus continue with the same basic positioning.

As a result, we are continuing to implement rigorously our product development strategy, which aims –alongside regional growth – to step up our product range on an ongoing basis in order to make the most extensive use of the business potential of our existing customer base. At present, we have 221,499 current contracts at the GRENKE Group including franchise partners. These provide us with effective, low-cost access to a large number of small and medium-sized corporate customers in Europe and thus huge sales potential which would not be economically possible for competitors without this access.

We currently support this customer base particularly through a continually growing network of more than 14,000 specialist reseller partners, including over 7,200 in our international markets. We generate new business with a wide range of flexible contract offers, which are geared towards the various needs of our commercial clients, meaning that the actual leasing condition is not the focus. We also offer our specialist reseller partners many different additional offers as well as straightforward financing, thereby positioning ourselves as a strategic partner for their own business development. The specialist reseller partners are dealt with directly by our decentralised sales or through our franchise partners.

Another product which we sell very successfully through a franchise partner to our customer base in Germany is factoring, which was again expanded considerably in the first quarter of 2009, rising by 19.5 percent to a volume of EUR 14.0 million. The profitmargin in relation to the volume was 1.8 percent, compared to 2.1 percent in the same quarter of the previous year. This decline in the margin in the reporting quarter primarily results from the fact that the average period for a factoring transaction decreased from 30 days in the previous year to 26 days. It does not have any impact on profitability.

EXPANSION IN EUROPE

GRENKE GROUP LOCATIONS IN EUROPE

INTERIM MANAGEMENT REPORT

ECONOMIC ENVIRONMENT

The global recession of 2009 has now become reality. As a result of the international financial crisis, asset prices dropped sharply and the world economy rapidly weakened over the course of the second half of 2008. Global trade is experiencing a major downturn in the face of general weak consumption, declining investments and, in several industries, decreasing production volumes. Export-oriented nations are particularly suffering from this, not least Germany, where exports dropped significantly in the first quarter of 2009.

Correspondingly, economic forecasts for the year 2009 have been considerably scaled down on a wide front over the past few months. They now clearly tend towards a real absolute decline in global economic growth. The fact that many observers are talking of a global economic crisis becomes clear in view of the International Monetary Fund (IMF) estimate that even economic growth of less than 3 percent would mean recession on a global level.

Expectations for the European Union and particularly for Germany are significantly more negative. Here, observers are expecting real declines in GDP of up to 5 percent, in certain cases even considerably higher. In the course of such a development, a sharp rise in unemployment and an increase in company insolvencies are also expected.

In the view of most governments and organisations such as the IMF, the world economy will slowly establish a floor in the second half of 2009, but recovery will be very gradual and is unlikely before 2010. Some relief is provided particularly by the very low interest rates and the near halt in price rises, resulting not least from the decrease in raw material prices. However, in general these expectations are dependent on a previous elimination of the jitters in the international banking system, allowing for confidence in the financial markets to be restored. Furthermore, all hopes are being placed in the effectiveness of the numerous government economic stimulus packages, which have reached historic proportions.

REPORT ON THE RESULTS OF OPERATIONS

The Group's interest income is largely determined by the growth of new business and its profitability in the past, and is therefore independent of the current economic environment. This particular feature results from the nature of our business -in the leasing sector, only a small proportion of income from a new contract flows to the lessor when the contract is concluded. Most of this income is generated throughout the term of the contract. In contrast, the current economic environment does considerably influence the development of refinancing costs and the loss ratio of the GRENKELEASING AG Group and thus the net profit for the period.

The costs of international expansion current impact the results of operations less significantly than in earlier reporting periods, since we have slowed down the pace of our expansion in the current environment of global recession in order to reduce risks. We thereby limit the negative impact from construction costs for newlocations.

In 2008, the GRENKELEASING AG Group achieved very high growth in new business and also considerably increased the CM2 margin of new business. This was reflected in the first quarter of 2009 in a very pleasing increase in interest income of 11.4 percent as against the previous year to EUR 29.2 million, and an 11.0 percent increase in net interest income to EUR 18.4 million. Both these figures also represented a further improvement as against the fourth quarter of 2008. The Group is thus continuing to grow in a sequential comparison,too.

However, the significant increase in losses and risk provisioning from EUR 5.0 million in the previous year to EUR 6.8 million in the reporting period had a negative impact. Increasing losses and risk provisioning in weak periods for the general economy are not surprising and form part of our business model. This development was also already indicated in the fourth quarter of 2008, when there was a negative impact of EUR 5.5 million.

The combination of profitable new business in the last quarters and increasing losses due to the general economic situation led overall to net interest income after settlement of claims and risk provisioning of EUR 11.6 million in the reporting period, which was at the level of the previous year and the previous quarter. Due to the environment of general economic recession we are anticipating continued high and generally rising claims.

The profits from insurance business and from new business remained at the level of the previous year. In contrast, the profit from disposal of EUR 0.1 million in the reporting quarter was considerably lower than the previous year's figure of EUR 0.9 million. In addition to the typically high quarterly fluctuations in this item, the current recession in Europe is tending to lead to decreasing disposal prices and a decline in demand.

At EUR 22.8 million, overall income from operating business in the first quarter of 2009 remained slightly below the previous year's figure of EUR 23.4 million. Effective February 12 of the reporting year, GRENKELEASING AG acquired all of the shares in the Hamburgbased private bank Hesse Newman & Co. AG. The first-time consolidation of the company did not have any significant impact on the operating income of the GRENKELEASING AG Group in the reporting quarter (see also the "Report on the Development of the Segments" chapter).

On the expenses side, however, the first-time consolidation contributed to the increase in staff costs from EUR 6.5 million in the previous year to EUR 7.4 million in the reporting quarter. In addition, payments to employees, in particular, due to the high and very profitable new business in fiscal year 2008 also had to be taken into account in the first quarter of 2009. The opening of two new branch offices in Paris and Warsaw also contributed to the increase in personnel costs. However, as a result of curbed international growth, overall we had considerably lower increases in expenses than in the past.

The Group thus achieved pre-tax profits of EUR 10.2 million in the reporting quarter, as compared to EUR 11.2 million in the previous year. With a tax rate of 29.4 percent, at the same level as in the previous year, the net profit for the period totalled EUR 7.2 million following EUR 7.9 million in the previous year.

Report on the Development of the Segments

Following the takeover of the Hesse Newman & Co. AG bank, the Group reorganised its segment reporting on the basis of available financial information. In future, the Group will report on the Leasing and Bank segments. All activities which were managed by GREN-KELEASING AG and its subsidiaries prior to the takeover of the bank now form part of Leasing business. Banking business consists of the newly acquired activities of Hesse Newman. In managing leasing business, the Group is essentially still geared towards the individual regions / countries. The Leasing segment is a grouping of several operating segments which are defined by country / group of countries and which together make up the Leasing reportable segment.

With income from operating business of EUR 22.8 million following EUR 23.4 million in the previous year, and a segment result of EUR 11.0 million following EUR 11.2 million, the Leasing segment generated the majority of the GRENKELEASING AG Group's results and revenue in the reporting quarter, since the newly acquired Hesse Newman bank constitutes a considerably smaller unit than the Group, and only contributed to the quarterly result for a period of four weeks. Correspondingly, the comments on the Group's results performance which were shown in the previous chapter (Report on the Results of Operations) relate in a similar way to the Leasing segment. In order to avoid repetition, we therefore ask you to refer to this chapter.

With regard to new business, from which the Group's future income is generated, we are very satisfied with the development in the reporting quarter. In view of the continued significant deterioration in the economic situation and the increasingly uncertain economic forecasts, we are currently optimizing the margin and risk structure and consciously choosing to renounce new business volume. As a result, we also limit our refinancing requirements and secure our liquidity in view of the unstable state of the debt markets, in particular in view of the bonds maturing in April 2009.

We accordingly reduced new business by 17.3 percent in the reporting quarter and generated a volume of EUR 94.2 million. However, at the same time we also increased the CM2 of the new business by 8.2 percent, reaching a new record of EUR 18.0 million. We increased the CM2 margin from 14.6 percent in the previous year to 19.1 percent in the reporting quarter. We achieved this increase in the margin although we considerably reduced the average expected default risk for new business as compared to the same quarter of the previous year.

We managed the new business in France, Italy and the United Kingdom in a particularly restrained way, reducing the volume by 32.1 percent, 26.1 percent and 36.9 percent respectively as compared to the previous year. In contrast, we achieved double-digit positive growth rates in Poland and Holland, although in terms of their absolute volume these are among our smaller markets. In Poland we carried out a cell division in March, as announced, and with the opening of a branch in Warsaw we are now represented at two locations. Despite our current cautious positioning, we also see further growth potential in France and therefore opened an additional branch in Paris in the reporting quarter.

With the exception of Switzerland, where we again confirmed our already high CM2 margin of 20.6 percent, we achieved considerable margin increases in all our international markets. The development in France –by far our largest market outside of Germany –was particularly pleasing: here we increased the CM2 margin by more than half, from14.1 percent to 22.6 percent. There was likewise a very positive development in the United Kingdom, with an increase in the margin from 15.0 percent to 21.4 percent, and in Holland, with an increase from 17.6 percent to 22.9 percent.

In the Bank segment, there was negative operating income of EUR -0.1 million in the reporting period. Similarly, there was a negative segment result of EUR -0.5 million. This results from the fact that the bank's high liquidity surpluses were largely invested at low risk with the European Central Bank in the first quarter.

REPORT ON THE FINANCIAL POSITION AND NET ASSETS

In examining the development of the GRENKELEASING AG Group's balance sheet, the changes resulting from the first-time consolidation of Hesse Newman must be taken into account. The main assets and liabilities assumed as part of the acquisition include EUR 48.0 million of liabilities from deposits business. This is offset by EUR 18.4 million in loans and advances to customers and EUR 39.1 million in cash and cash equivalents. After deduction of the purchase price of EUR 7.1 million, cash totalling EUR 32.0 million therefore flowed to the GRENKELEASING AG Group from the transaction in the reporting quarter. These figures show the strong position of our new subsidiary in the deposits business, which we intend to continue expanding in the future.

The first-time consolidation of Hesse Newman thus contributed significantly to the EUR 43.2 million increase in total assets to EUR 1,498.6 million, whereas lease receivables decreased by EUR 11.5 million to EUR 1,131.7 million in comparison to the end of the 2008 fiscal year as a result of restrictive new business. Parallel to this, cash increased from an already high level of EUR 77.0 million as at December 31, 2008 to EUR 112.9 million at the reporting date. Overall, the GRENKELEASING AG Group continued to have very comfortable equity base at the reporting date. With an equity ratio of 16.7 percent, we were only slightly below the level of 16.9 percent at the end of the 2008 fiscal year and thus still above our target level of 16 percent. If total assets are reduced by the currently very high levels of cash, for which generally no equity is allocated, then the equity ratio for the reporting quarter shows a slight increase at 18.0 percent as compared to 17.9 percent calculated in the same way for year-end 2008.

We also further reinforced the funding base in the first quarter of 2009. For example, we extended the terms of three promissory note loans with a total volume of EUR 30 million until 2013 and 2014 respectively. In addition, we increased two further loans with a volume of EUR 63.0 million by a net amount of EUR 3.5 million through extensions, redemptions and new issues and extended the terms until 2013 and 2014 respectively.

The cash flow statement for the first quarter of 2009 shows a refinancing volume from payments of annuities to refinancers and from disposal of liabilities from refinancing amounting to EUR 267.2 million, as compared to EUR 191.6 million in the previous year. We financed this high and significantly increased volume through the addition of liabilities from refinancing of EUR 237.2million, following EUR 192.7 million in the previous year.

In addition, we had available to us the funds from pre-tax profits, adjusted by the non-cash items, and from an inflow of funds from changes in lease receivables of EUR 11.5 million due to the restrictively managed new business, as compared to a EUR 18.8 million outflow of funds in the previous year. Overall, we managed these cash flows in such a way that with a net amount of EUR -1.8 million they were almost balanced, whereas in the previous year a EUR 5.5 million inflow of funds was generated. Refinancing funds from the deposits business totalling EUR 8.7 million also flowed to us through our new subsidiary Hesse Newman.

After larger loans to franchisees, cash changes in assets and liabilities, and taxes and interest paid / received, we achieved a net cash flow from operating activities of EUR 7.1 million in the reporting period, following EUR -2.6 million in the previous year. Cash flow from investing activities amounted to EUR 31.7 million, primarily due to the cash inflow from the acquisition of Hesse Newman as described above, as well as low payments for the acquisition of equipment. In the previous year, there had been an overall outflow of EUR -7.9 million as a result of the acquisition of the two former franchise companies in the United Kingdom and Poland in the first quarter of 2008. At EUR -0.5 million following EUR 0.1 million in the previous year, cash flow from financing activities is again very low, since the Group assumed bank liabilities only to a limited extent and also only for refinancing investments in buildings.

In the total cash flow we therefore achieved an inflow of funds of EUR 38.3 million in the reporting period, following an outflow of funds of EUR 10.4 million in the first quarter of the previous year.

REPORT ON FORECASTS AND THE OUTLOOK FOR THE GROUP

Opportunities and Risks

The following opportunities and risks report relates to both the Group and the segments. The risks affecting the GRENKELEASING AG Group which were described in the 2008 Annual Report are still relevant. No additional risks have emerged which relate to this group of risks.

The takeover of the Hesse Newman bank in the first quarter of 2009 (effective February 12) results in additional risks for the GRENKELEASING AG Group from the traditional banking business which is Hesse Newman's focus. These chiefly relate to risk provisioning for the portfolio of loans and advances and punctual repayment of liabilities from deposits business. However, the latter also provide the GRENKELEASING AG Group with opportunities on the refinancing side, which are among the most important aspects of the rationale for the acquisition.

The international financial markets crisis has since spread to the real economy worldwide, resulting in a global economic downturn in the current year. The governments of the major industrialised and emerging nations are attempting to combat the economic crisis with concerted measures. Central banks' efforts to stabilise the banking system have since begun to take positive effect, although there has not yet been sustained stabilisation or restored confidence on the part of market participants.

As we anticipated, our sales markets are also in recession now. As a result, there is the risk of a decline in investments by our target customers and a fall in demand for leasing finance. However, this risk has not yet materialized. On the contrary, demand for leasing continues to grow. In addition, there is also the risk of increasing damages, in particular relating to insolvencies. For this reason, new business is being managed actively to reduce the average expected default risk.

Despite the sustained shortage of refinancing funds on the capital markets arising from the banking crisis, the considerably increased refinancing volume in the first quarter as against the previous year did not present any significant problems. In addition, the durations for loans totalling EUR 96.5 million were extended until 2013 and 2014 respectively and the funding base was further reinforced in the first quarter of 2009. Furthermore, the bonds maturing in the second quarter of 2009 with a total amount of EUR 125 million will be repaid out of our own funds by the time this quarterly report appears. This underlines the fact that we have once again successfully managed our liquidity in the first months of the new business year. This of course also includes the management of our new business in line with this. It is precisely in the current difficult times that our broadly diversified access to many different refinancing funds proves itself, meaning that we can react to the respective development of the individual submarkets and position ourselves accordingly.

The risk of increasing interest rates continues to be of significance to the Group's results performance. However, with the global slowdown in growth, inflation risks have decreased considerably in the medium term, especially since the central banks are continuing to provide liquidity worldwide to a large extent and at favourable conditions in order to support the financial system. Regardless of this, in view of the extreme global increase in liquidity, we are anticipating increased inflation to accompany a more favourable economic development, and thus also a rise in interest rates.

With regard to refinancing lease receivables, the Group is subject to interest rates only to a limited extent, since the refinancing –if subject to a floating rate – is hedged using derivatives. The relevant submarket for this type of hedging instruments is also functional in the current banking crisis and provides the necessary instruments at suitable prices. However, risks for the growth and profitability of new business may arise from changes in interest rates and spreads. The time delay with which we can pass on interest rate changes to customers therefore has a temporary impact on profitability.

We remained in a position to be able to pass on overall increases in refinancing costs of our new business, in particular owing to an extension of the interest spread on the capital markets, to the market, and even to increase the CM2 margin for new business in the Group in the first quarter to a record level of 19.1 percent, following 14.6 percent in the first quarter of 2008. The market change which had already been observable for some time also worked very much in our favour in the new fiscal year. Due to the considerable challenges for banks with regard to their equity base, there has been a significant easing of the competitive situation in leasing business. In addition, there has been a downward interest rate trend on the refinancing markets on account of the globally high levels of liquidity provisions for the markets from the central banks. Both effects more than offset the current increase in the interest spread which means the risk arising from our business model's sensitivity to interest rates remains clearly limited.

In addition, currency risks may arise from refinancing our franchise partners outside of the eurozone. However, we minimise these with our stringent financial risk strategy by using hedging derivatives. In this area as well, the financial products necessary to our business are still available with sufficient liquidity. It must be taken into account that the contractually agreed payment schedule of a lease contract is hedged using derivatives. However, with the current level of more than 220,000 contracts, in times of above-average currency volatility slight variations such as early repayments or cancellations and delays in instalments may accumulate negatively across the whole portfolio, for example, as a result of unfavourable bank processing periods. This can result in an observable negative impact, particularly on a quarterly basis.

Anticipated Development of Business

In view of the extraordinary economic developments, the growth and profitability of the new business of the GRENKE Group including franchise partners in the first quarter of the current fiscal year was highly satisfactory. The most recent development in the contribution margins shows that the GRENKELEASING AG Group is well equipped for the current difficult period for the economy as a whole.

This is also particularly true of the balance achieved between the volume, margin and risk profile. Optimising the margin and risk structure is the priority here in view of the deteriorating economic situation, and new business is clearly geared towards this. There is also a focus on strengthening the balance sheet and liquidity management. The GRENKELEASING AG Group's refinancing situation is solid considering the state of the refinancing markets. Following the repayment of the bonds which expired at the end of April 2009, there are no further major maturities for debentures in the current year.

However, the high level of economic uncertainty, particularly with regard to providing liquidity for companies and the further development of employment rates, presents major challenges for the coming quarters. This is shown both by the greater role of the prudence principal in managing new business and in particular by the development of claims in the first quarter. Although they are completely typical during economic downturns and as such form part of our business model, the growing level of claims in the current fiscal year constitutes a major uncertainty factor for our further results performance. The business performance in the second quarter should give clear indications of this.

That we actively create growth in difficult economic periods too, is shown by the cell division in Poland, where –following the opening of a branch in Warsaw – we are now represented at two locations, as well as by the acquisition of Hesse Newman in February. As a result we have taken an important step in further expanding our business activities and diversifying our sources of refinancing.

CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM JANUARY 1, 2009 TO MARCH 31, 2009

	3-months report
EURk	Jan. 1 to Mar. 31, 2009	Jan. 1 to Mar. 31, 2008
Interest and other income from financing business	29,212	26,227
Expenses from interest on refinancing and on deposit business	10,813	9,655
Net interest income	18,399	16,572
Settlement of claims and risk provision	6,836	4,957
Net interest income after settlement of claims and risk provision	11,563	11,615
Profit from insurance business	5,063	4,917
Profit from new business	6,024	6,004
Profit from disposal	120	908
Income from operating business	22,770	23,444
Personnel expenses	7,418	6,462
Depreciation	775	777
Selling and administration expenses (excl. personnel expenses)	4,378	4,396
Other operating expenses	618	881
Other operating income	912	250
Profit/ loss from operating business	10,493	11,178
Expenses/ income from the fair value measurement	-203	0
Other interest income	240	213
Other interest expenses	317	201
Earnings before taxes (EBT)	10,213	11,190
Income taxes	5,209	4,091
Deferred taxes	-2,202	-782
Net profit for the period	7,206	7,881
Earnings per share (basic) in EUR	0.53	0.58
Earnings per share (diluted) in EUR	0.53	0.58
Average shares outstanding (basic)	13,684,099	13,684,099
Average shares outstanding (diluted)	13,684,099	13,684,099

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM JANUARY 1, 2009 TO MARCH 31, 2009

	3-months report
EURk	Jan. 1 to Mar. 31, 2009	Jan. 1 to Mar. 31, 2008
Net profit for the period	7,206	7,881
Allocation/ reduction of the hedging reserve	-2,266	-799
Allocation/ reduction of the reserve for actuarial profits and losses	-29	-32
Currency translation adjustment	-1,366	936
Other comprehensive income (net of tax)	-3,661	105
Total comprehensive income	3,545	7,986

CONSOLIDATED BALANCE SHEET AS PER MARCH 31, 2009

EURk	Mar. 31, 2009	Dec. 31, 2008
Assets
Current Assets
Cash	112,851	77,012
Financial instruments with positive market value (short term portion)	3,487	3,655
Lease receivables	445,074	438,868
Other current financial assets	64,882	32,047
Trade receivables	5,042	5,955
Lease assets for sale	12,914	12,151
Tax receivables	3,113	5,211
Other current assets	14,857	18,949
Total current assets	662,220	593,848
Non-current assets
Lease receivables	686,603	704,350
Financial instruments with positive market value (long term portion)	2,771	3,438
Other non-current financial assets	82,346	89,360
Property, plant and equipment	35,830	35,714
Goodwill	8,168	8,239
Other intangible assets	2,707	2,296
Deferred tax assets	17,728	17,442
Other non-current assets	198	710
Total non-current assets	836,351	861,549
Total assets	1,498,571	1,455,397

CONSOLIDATED BALANCE SHEET AS PER MARCH 31, 2009

EURk	Mar. 31, 2009	Dec. 31, 2008
Liabilities and Equity
Liabilities
Current liabilities
Refinancing liabilities	396,196	441,847
Liabilities from deposit business	49,194	0
Short-term debt	1,383	4,692
Financial instruments with negative market value (short term portion)	7,206	4,350
Trade payables	6,935	8,466
Tax liabilities	5,190	3,101
Deferred liabilities	3,081	2,310
Other current liabilities	6,395	5,465
Deferred lease payments	73,269	70,217
Total current liabilities	548,849	540,448
Non-current liabilities
Refinancing Liabilities	634,491	609,218
Liabilities from deposit business	7,510	0
Long term debt	8,018	7,819
Financial instruments with negative market value (long term portion)	1,539	1,084
Deferred tax liabilities	45,677	47,768
Pensions	1,336	90
Other non-current liabilities	1,192	2,556
Total non-current liabilities	699,763	668,535
Equity
Capital stock	17,491	17,491
Capital reserve	60,166	60,166
Retained earnings	34,150	5,317
Other components of equity	-7,818	-4,156
Balance sheet profit	145,969	167,596
Total equity	249,959	246,414
Total liabilities and equity	1,498,571	1,455,397

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2009 TO MARCH 31, 2009

	EURk	Jan. 1 to Mar. 31, 2009	Jan. 1 to Mar. 31, 2008
	Earnings before taxes	10,213	11,190
	Non-cash items contained in net profit for the period and reconciliation to cash flow from operating activities
+ / -	Amortisation/ depreciation	775	777
- / +	Profit/ loss from the disposals of equipment and intangible assets	-1	1
- / +	Investment income	77	-12
- / +	Non-cash changes in equity	-3,539	3
+ / -	Increase/ decrease in other provisions	-455	281
-	Additions of lease receivables	-103,135	-120,327
+	Payments by lessees	117,958	108,135
+	Disposals/ reclassifications of lease receivables at residual carrying values	26,426	22,755
+ / -	Changes from other set-offs	0	0
-	Interest and other income from financing business	-29,212	-26,227
-	Increase in other receivables from lessees	-2,872	-2,519
+ / -	Currency translation differences	2,376	-588
=	Change in lease receivables	11,541	-18,771
+	Additions of liabilities from refinancing	237,194	192,714
-	Payment of annuities to refinancers	-68,223	-54,961
-	Disposal of liabilities from refinancing	-198,996	-136,661
+	Expenses from interest on refinancing and on deposit business	10,811	9,654
+ / -	Currency translation differences	-1,164	1,331
=	Change in refinancing liabilities	-20,378	12,077
+	Change in liabilities from deposit business	8,666	0
-	Change in loans to franchisees	-6,416	633
	Changes in other assets/liabilities
-/ +	Increase/decrease in other assets	5,761	-6,468
+ / -	Increase/decrease in deferred lease payments	3,052	4,414
+ / -	Increase/decrease in other liabilities incl.pensions	-1,106	-3,067
=	Cash flow from operating activities	8,190	1,058

Continued on next page

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2009 TO MARCH 31, 2009: CONTINUED

	EURk	Jan. 1 to Mar. 31, 2009	Jan 1. to Mar. 31, 2008
- / +	Taxes paid/ received	-1,022	-3,696
-	Interest paid	-317	-201
+	Interest received	240	213
=	Net cash flow from operating activities	7,091	-2,626
-	Purchase of equipment and intangible assets	-257	-321
+/-	Acquisition of subsidiaries (net of cash acquired)	31,994	-7,544
+	Proceeds from sale of equipment and intangible assets	5	11
=	Cash flow from investing activities	31,742	-7,854
+ / -	Raising/ repayment of bank liabilities	-545	75
-	Dividend payment	-	-
=	Cash flow from financing activities	-545	75
	Cash funds at he beginning of the period
	Cash on hand and balances with banks	77,012	53,395
-	Bank liabilities from overdrafts	-3,593	-4,604
=	Cash and cash equivalents at the beginning of period	73,419	48,791
+ / -	Change due to currency translation	117	-35
=	Cash funds after currency translation	73,536	48,756
	Cash funds at the end of period
	Cash on hand and balances with banks	112,851	43,064
-	Bank liabilities from overdrafts	-1,027	-4,713
=	Cash and cash equivalents at the end of period	111,824	38,351
	Change in cash and cash equivalents during the period (Sum of cash flows)
		38,288	-10,405
	Net cash flow from operating activities	7,091	-2,626
+	Cash flow from investing activities	31,742	-7,854
+	Cash flow from financing activities	-545	75
=	Total cash flow	38,288	-10,405

STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY

					Reserve for actuarial
	Capital	Capital	Retained	Hedging	profits and	Currency	Total
EURk	stock	reserve	earnings	reserve	losses	translation	equity
Equity as per Jan. 1, 2008	17,491	60,166	147,980	1,200	-62	-608	226,167
Total comprehensive income			7,881	-799	-32	936	7,986
Dividend in 2008 for 2007			0				0
Equity as per Mar. 31, 2008	17,491	60,166	155,861	401	-94	328	234,153
Equity as per Jan. 1, 2009	17,491	60,166	172,913	-3,379	-66	-711	246,414
Total comprehensive income			7,206	-2,266	-29	-1,366	3,545
Dividend in 2009 for 2008			0				0
Equity as per Mar. 31, 2009	17,491	60,166	180,119	-5,645	-95	-2,077	249,959

SEGMENT REPORTING FOR THE PERIOD JANUARY 1, 2009 TO MARCH 31, 2009

Since the takeover of the Bank, the Group has managed the Leasing and Bank reportable segments on the basis of available financial information. All activities which were managed by GRENKELEASING AG and its subsidiaries previous to the takeover of Hesse Newman & Co. AG are now part of Leasing business. Banking business consists of the activities of Hesse Newman & Co. AG. In managing the Leasing business, the Group is essentially aligned to the individual regions / countries. The Leasing segment is thus a grouping of several operating segments which are defined by country / group of countries and which together make up the Leasing reportable segment.

					GRENKELEASING
As per 31.03.2008 (EURk)	Leasing	Bank	Total Segments	Consolidation	AG Group
Operational segment revenues	23,444	0	23,444	0	23,444
Segment result	11,178	0	11,178	0	11,178
Reconciliation to Consolidated
Financial Statements
Operating result					11,178
Other net financial income					12
Taxes					3,309
Net profit for the period					7,881
Segment assets	1,263,231	0	1,263,231	0	1,263,231
Reconciliation to Consolidated
Financial Statements
Tax claims					23,449
Total assets					1,286,680

As per 31.03.2009 (EURk)	Leasing	Bank	Total Segments	Consolidation	GRENKELEASING AG Group
Operational segment revenues	22,828	-58	22,770	0	22,770
Segment result	10,972	-479	10,493	0	10493
Reconciliation to Consolidated Financial Statements
Operational result					10,493
Other net financial income					-280
Taxes					3,007
Net profit for the period					7,206
Segment assets	1,411,163	68.568	1,479,731	- 2.000	1,477,731
Reconciliation to Consolidated Financial Statements
Tax claims					20,840
Total assets					1,498,571

The segment information was calculated as follows:

• The operating segment revenues consist of net interest income after settlement of claims and risk provisioning, profit from insurance business, profit from new business and the segments' realisation surplus.
• The segment result is calculated as an operating result before taxes.
• Segment assets are operating assets excluding tax assets.

SELECTED EXPLANATORY NOTES

ACCOUNTING POLICY

The interim reporting of GRENKELEASING AG (hereafter referred to as "Company") as at March 31, 2009 meets the requirements of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and assumed by the EU, as did the consolidated financial statements of December 31, 2008.

The regulations of IAS 34 on interim reporting were applied accordingly. All interim financial statements of the companies included in GRENKELEASING AG's consolidated financial statements have been prepared using uniform accounting policies.

Because interim reporting is based on the consolidated financial statements, information on this can be found in the accounting and consolidation policies as described in detail in the notes to the consolidated financial statement of December 31, 2008.

The accounting policies used are the same as those used in the previous year. Exceptions resulting from the application of new standards / changes in disclosures due to acquisition are described below.

CHANGES IN DISCLOSURES

The format of the balance sheet and of the income statement was adjusted in the first quarter of 2009 due to the acquisition of Hesse Newman & Co. AG (hereafter "Bank") and in order to improve clarity and informational content. Some items were reclassified / introduced for the first time. Wherever the figures for the previous year were affected, these were adjusted accordingly.

The following adjustments were made in the income statement. The figures for the previous year were not altered for any of the items concerned, since generally the adjustments involved clarifications of terms.

• The "Interest and otherincome from financing business" item replaces the previous term "Interest income from leasing business". Alongside interest income from leasing, interest income from the lending business of the acquired bank was also included in this item.
• "Interest expense from refinancing the lease business" was renamed "Expesnse from interest on refinancing and on deposit business".
• "Net interest income" includes the entire Group net interest income as well as the previous "Net interest income from leasing business".
• "Settlement of claims" was renamed "Settlement of claims and risk provisioning" and includes settlement of claims from leasing business and risk provisioning for the portfolio of loans and advances in banking activities.

The following changes appear in the balance sheet:

• "Cash" includes all cash assets, cash in accounts at central banks and all cash in bank accounts. This does not affect the figures for the previous year.
• Loans and advances to customers are included under other financial assets.

• Both "Financial instruments with a positive market value" on the assets side and "Financial instruments with a negative market value" on the liabilities side are divided into current and non-current categories. The figures for the previous year were adjusted accordingly.

• "Liabilities from deposit business" was introduced for the first time. This item consists of liabilities due to customers from the Bank deposit business. The figure for the previous year is thus zero.

• "Pensions" are now shown in a separate line and are accordingly calculated from "Other non-current liabilities". The figure for the previous year was adjusted accordingly to show pensions at EUR 90k.

MANDATORY NEW ACCOUNTING STANDARDS

In recent years, the IASB has published various different amendments of IFRSs and new IFRSs as well as International Financial Reporting Interpretations Committee interpretations (IFRICs). The following section describes those of the provisions mandatory as of January 1, 2009 which are relevant or potentially relevant to GRENKELEASING, as well as their effects on the consolidated financial statements. Non-explicit changes in the IFRS are not relevant to the Company's financial statements. However, this does not have any effect on accounting.

• IAS 1 "Presentation of financial statements" was published in September 2007 and is operative for the first time for the reporting period beginning on or after January 1, 2009. The new version of the standard includes significant changes in the presentation and reporting of financial information in financial statements. From now on, only transactions relating to equity holders acting in their capacity as equity holders are to be reported in the statement of changes in equity. Other changes in equity are to be shown in an "Overall statement of total income".
• IFRS 8 "Operating segments" was published in November 2006 and is operative for the first time for fiscal years beginning on or after January 1, 2009, replacing IAS 14 "Segment reporting". IFRS 8 requires reporting on financial and descriptive information relating to companies' reportable segments. Reportable operating segments are components of a company or groupings of operating segments in line with certain criteria. In particular, for these segments financial information must be available which is reviewed on a regular basis by the company's highest management committee in order to measure and evaluate business success. The financial information should be reported on the basis of internal management, since IFRS 8 follows the so-called "management approach".
• The amendments to IAS 32 "Financial instruments: Presentation" and IAS 1 "Presentation of financial statements" were issued on February 14, 2008 and become effective for fiscal years beginning on or after January 1, 2009. This did not result in any changes in the financial statements.
• On May 22, 2008, the IASB published changes to existing standards for the first time as part of an annual procedure ("Improvements to IFRS 2008"). The primary aim of the collective standard is to remedy inconsistencies and to clarify formulations. The changes are mandatory for fiscal years beginning on or after January 1, 2009. The following section describes only those standards which affect the financial statements. Specifically, the following standards are affected. Unless explicitly stated, the Group does not expect any effects as a result of the relevant application:
• − IAS 1 "Presentation of financial statements": In accordance with IAS 39 "Financial instruments: recognition and measurement", assets and liabilities which are classified as held for trading are not automatically classified as current in the balance sheet. As a result, derivatives will be recognised under non-current financial instruments in the balance sheet.
• − IAS 36 "Impairment of assets": Where the "fair value less costs to sell" is calculated based on a discounted cash flow model, additional disclosures on the discount rate are required in line with obligatory disclosures when a discounted cash flow model is used in determining the "value in use". This change does not have a direct effect on consolidated financial statements, since the recoverable amount of the Group's cash-generating entities is currently calculated based on the "value in use".

• − IAS 8 "Accounting policy, changes in estimates and errors": It is clarified that only guidance which constitutes an integral part of the IFRS is mandatory when selecting accounting policies.

• − IAS 34 "Interim reporting": When an entity is within the scope of IAS 33, the presentation of earnings per share in the interim report is provided.

• − IAS 39 "Financial instruments: recognition and measurement": After initial recognition, due to changed circumstances derivatives can be designated as "at fair value through profit and loss" or removed from this category because it is not a reclassification in line with IAS 39. In IAS 39 the reference to "segment" in relation to the judgement as to which an instrument qualifies as a hedging instrument is deleted. The use of the recalculated effective interest rate is required when a debt instrument isrevalued after ending the fair value hedge accounting for hedging the fair value.

NEW ACCOUNTING STANDARDS WITH VOLUNTARY APPLICATION / STANDARDS WHICH HAVE NOT YET BEEN ENDORSED BY THE EU

Apart from the IFRSs whose application is mandatory, the IASB has also published other IFRSs and IFRICs, some of which have already received EU endorsement but which will only become mandatory at a later date. Below, only those standards and interpretations which could be relevant for GRENKELEASING AG and which were not presented in the consolidated financial statements as at December 31, 2008 are described. Voluntary early application of these standards is explicitly permitted / recommended. GRENKELEASING AG is not exercising this option.

IFRIC Interpretation 18 was published in January 2009 and is operative for the first time for the reporting period beginning on or after July 1, 2009. This interpretation provides guidance on the recognition of arrangements hereby an entity receives an item of property, plant or equipment or cash from a customer which the company must then use e.g. to connect the customer to a network and/or to provide the customer with ongoing access to a supply of goods or services. The interpretation particularly comments on the criteria for recognition of customer contributions and the time and extent of revenue recognition from such transactions. This interpretation is to be applied prospectively.

"Improvements to IFRSs" was published by the IASB on April 16, 2009. It is the second standard published as part of the Annual Improvements Process (AIP) project. Improvements to IFRSs includes 15 different changes to twelve existing IFRSs. In addition to the changes proposed in the exposure draft "Proposed improvements to IFRSs" in August 2008, these Improvements to IFRSs include five further changes, some of which were issued to the public for comment as part of the first improvements exposure draft "Proposed improvements to IFRSs" in October 2007, and others as part of the exposure draft "ED/2009/1" published at the end of January 2009. By grouping these changes together in a single document, the IASB intends to reduce the expense for all involved.

ACQUISITIONS IN FISCAL YEAR 2009

Business combinations are recognised using the purchase method of accounting. Goodwill is initially measured at cost which is the excess of the purchase price over the fair value of the identifiable assets and liabilities of the acquired entity as of the date of acquisition plus the directly attributable acquisition costs.

After initial recognition, all goodwill is tested for impairment at least once a year pursuant to IAS 36 to prove its adequate valuation (impairment-only approach). This regular impairment test is conducted in the third quarter of each year on the basis of the six-month figures. If there are indications that goodwill might be impaired, more frequent tests must be conducted in addition to the mandatory annual impairment test.

Effective February 12, 2009, GRENKELEASING AG acquired all of the shares in the Hamburg-based private bank "Hesse Newman & Co. AG". In accordance with the requirements of the purchase agreement, the date of purchase / closing date (date control was obtained) as defined in IFRS 3 was February 25, 2009.

The fair values of the identifiable assets and liabilities at the acquisition date and the corresponding carrying amounts immediately after the date of acquisition of Hesse Newman &Co. AG are as follows:

Hesse Newman & Co. AG / Hamburg

EURk	Fair value under IFRSs	Derived IFRS carrying amount
Cash and cash equivalents	39,072	39,072
Receivables from customers	18,395	18,395
Equity investment	38	38
Intangible assets (incl. customer base)	705	48
Property, plant and equipment	944	944
Deferred tax assets	25	63
Other assets	543	543
Total assets	59,721	59,103
Liabilities from depositbusiness	48,038	48,038
Pensions	1,160	1,285
Other provisions	1,277	1,277
Deferred tax liabilities	208	6
Other liabilities	2,362	2,362
Total liabilities	53,045	52,968
Net assets	6,676
Goodwill arising on acquisition	403
Total acquisition cost	7,078

The acquisition cost of the merger with Hesse Newman & Co. AG totalled EUR 7,078k and included costs directly attributable to the business combination.

Acquisition cost	EURk
Purchase price	6,700
Cost directly attributable to the acquisition	378
Total	7,078

Cash outflow on acquisition	EURk
Net cash acquired with the subsidiary	39,072
Cash paid	7,078
Net cash inflow	31,994

In other liabilities, the Bank has a subordinated loan with a nominal value of EUR 2,000k. This loan, which was originally given to the Bank by the previous shareholder, was acquired at nominal value by GRENKELEASING AG as part of the purchase agreement. As a result of the consolidation of this intra-Group transaction, this loan is not shown in the consolidated balance sheet.

Due to the extraordinary liquidity situation of the acquired Bank, cash totalling EUR 31,994k (after deduction of the purchase price paid) flowed to GRENKELEASING as a result of the purchase. The purchase price allocation is provisional in line with IAS 3.62 and will be finalised by the end of the fiscal year, provided all relevant information for a final purchase price allocation is available. Goodwill of EUR 403k was disclosed at the balance sheet date.

EUR 656k of the intangible assets relates to measured customer relationships. This customer base is thus to be written down over a useful life of five years. The Bank's contribution to the net profit for the period before taxes totals a loss of EUR 479k, EUR 31k of which relates to net interest income for the period of the acquisition up until March 31, 2009. The Bank's total net interest income for the first quarter of 2009 amounts to EUR 251k.

USE OF JUDGEMENT AND MAIN SOURCES OF ESTIMATING UNCERTAINTIES

The main estimating uncertainties and the associated disclosure requirements are in the following areas:

• Measurement of non-performing lease receivables on the basis of the recoverability rate
• Use of estimated residual values at the end of the lease term to determine the present value of lease receivables
• Recognition of lease assets for sale at estimated residual values.

Non-performing lease receivables are carried at nominal value less appropriate bad debt allowances. The amounts of bad debt allowances are determined using percentages and processing categories. Percentages are calculated using statistical methods. They are reviewed once a year for validity. Processing statuses are grouped together in processing categories set up with a view to risk. The following table lists the processing categories:

Category	Description
0	Current contract not in arrears
1	Current contract in arrears
2	Terminated contract with serviced instalment agreement
3	Terminated contract (recently terminated or court order for payment applied for)
4	Legal action (pending or after objection to court payment order)
5	Order of attachment issued/Debt-collecting agency commissioned
6	Statement in lieu of oath (applied for or issued) and insolvency proceedings instituted but not completed
7	Derecognised
8	Being settled (not terminated)
9	Discharged (completely paid)

A decrease in value is assumed for categories 2 to 7 as the contracts have been terminated due to defaults in payment. The allowance rates range between 5 percent and 100 percent.

Receivables from non-performing contracts are included in other current lease receivables. Lease receivables are as follows:

Non-guaranteed residual values are used to calculate lease receivables in accordance with the definition in IAS 17. They are determined on the basis of past experience and statistical methods. Based on experience, residual values for additions until 2006 range between 11 percent and 15 percent of historical acquisition cost, depending on the term of the lease. In fiscal year 2007, this classification was split further into several groups according to the contract term. For additions from 2007 onward, the residual values range between 7.7 percent and 28.4 percent of historical cost. For the additions from fiscal year 2009, the level of the residualvalues relative to the historical cost of the lease agreements is between 6.5 percent and 28.4 percent.

Lease assets for sale are measured at historical residual values, taking into account their actual saleability. As of the balance sheet date, the residual values used amounted to between 6.6 percent and 22.5 percent of the historical cost. If a sale is considered unlikely due to the condition of the asset, the asset is written off and recognised as an expense.

EURk	March 31, 2009	March 31, 2008
Changes in performing lease receivables
Balance at beginning of period	1,064,827	930,195
+ change in the period	-14,413	53,442
Lease receivables (current + non-current) from current contracts at period end	1,050,414	983,637
Changes in non-performing lease receivables
Gross receivables at beginning of period	151,667	139,435
- accumulated valuation allowances at beginning of period	-73,276	-69,572
= Non-performing lease receivables at beginning of period	78,391	69,863
+ change in gross receivables during the period	11,838	8,578
- disposals of gross receivables during the period	5,408	4,297
+ disposal of accumulated valuation allowances during the period	2,350	3,000
- addition of accumulated valuation allowances during the period	5,908	3,691
Non-performing lease receivables at period end	81,263	73,453
Lease receivables (carrying amounts of current + non-current receivables) at beginning of period	1,143,218	1,000,058
Lease receivables (carrying amounts of current + non-current receivables) at period end	1,131,677	1,057,090

REFINANCING

ABCP Programmes

The GRENKELEASING Group has three asset-backed commercial paper programmes (ABCPs) with a total volume of EUR 512,200k and 83% of which were used as of the reporting date. The ABCP programme of WestLB Compass Variety Funding Limited comprises a volume of EUR 250,000k. The volume of Kebnekaise Funding Limited, the ABCP programme of SEB AB, amounts to EUR 112,200k as of the reporting date. The programme of DZ-Bank CORAL PURCHASING Limited has a volume of EUR 150,000k.

Promissory note loans

Unless mentioned otherwise, the reference interest rate for the floating-rate bonds, promissory notes and private placements is the three-month EURIBOR. The key data for the newly issued / adjusted promissory note loans are as follows:

Promissory note loan (PNL)
Description	Note	Term		Coupon	Discount	Nominal value	Nominal value
		from	to	percent p.a.		Mar. 31, 2009	Dec. 31, 2008
					EURk	EURk	EURk
Adjustments to PNL
EUR–PNL	(I)	19.03.2009*	10.03.2014	5.1374	-	10,000	10,000
EUR–PNL	(II)	30.03.2009*	28.03.2013	5.7610	-	10,000	10,000
EUR–PNL	(III)	10.03.2008	10.03.2011	4.719	57	2,500	25,500
EUR–PNL	(IV)	10.03.2008	10.03.2011	Euribor + 0.85	86	35,500	37,500
EUR–PNL	(V)	30.03.2009*	28.03.2013	5.7610	15	10,000	10,000

*Date of the extension / interest rate adjustment.

Promissory note loan (PNL)
Description	Note		Term	Coupon	Discount	Nominal value	Nominal value
		from	to	percent p.a.		Mar. 31, 2009	Dec. 31, 2008
					EURk	EURk	EURk
New PNL issues
EUR–PNL	(a)	10.03.2009	10.03.2014	5.8900	-	10,000	-
EUR–PNL	(b)	10.03.2009	11.03.2013	5.1680	-	4,000	-
EUR–PNL	(c)	30.03.2009	10.03.2014	5.8800	-	14,500	-

On March 19, 2009, the promissory note loan of EUR 10,000k –table (I) –which was originally due to mature on August 16, 2010 was extended until March 10, 2014. At the same time, the agreed variable interest rate was changed to a fixed interest rate,with a fixed coupon of 5.1374 percent valid as of March 19, 2009.

On March 30, 2009, the repayment date for the promissory note loan of October 25, 2007 –table (II) –which was originally due to mature on April 30, 2011 and had a fixed interest rate of 5.21 percent, was extended until March 28, 2013 and a new fixed interest rate of 5.761 percent was agreed.

The promissory note loan with an original notional amount of EUR 25,500k – table (III) – was adjusted overall in its nominal volume to EUR 2,500k. EUR 7,500k in nominal volume on this loan was repaid on March 10, 2009 and at the same time a new promissory note loan was issued –table (a) –with a volume of EUR 10,000k, a fixed interest rate of 5.89 percent and a term ending on March 10, 2014. In addition, on March 30, 2009, EUR 14,500k was issued as a new promissory note loan – table (c) – with a fixed interest rate of 5.88 percent and maturity on March 10, 2014, and the nominal volume of EUR 1,000k was also repaid on March 30, 2009. The discount on the original promissory note loan with an initial value of EUR 57k is recognised in profit or loss at the amount of EUR 37k as a result of adjustments in the first quarter of 2009.

The promissory note loan – table (IV) – with an initial volume of EUR 37,500k still has a nominal volume of EUR 35,500k on the balance sheet date. EUR 2,000k was of this promissory note loan was repaid on March 10, 2009, and at the same time a new promissory note loan of EUR 4,000k was contracted – table (b) – with the redemption date on March 11, 2013. The newly issued promissory note loan has a fixed interest rate of 5.168 percent. The reversal of the discount related to the original issue, with an initial value of EUR 86k, was recognised in full in profit or loss at the amount of EUR 56k for the first quarter of 2009.

On March 30, 2009, the redemption date for the promissory note loan –table (V) –which was originally due to mature on April 30, 2011 was extended until March 28, 2013. In this context, the fixed interest rate of 5.21 percent was contracted at 5.761 percent for this term. The discount on the issue, initially totalling EUR 15k, was recognised as an expense with its residual carrying value at EUR 10k.

Revolving Credit Facility

In the context of revolving credit facilities with a total volume of EUR 150,000k, the Group has the possibility to take on short-term funds with a minimum amount of EUR 5,000k and a term of at least one month at any time. Three of the loan facilities in place since 2006 with a total volume of EUR 90,000k were prolonged for a further year in September 2008 at the same conditions. In January 2009, EUR 30,000k was prolonged by one year and in February 2009, EUR 30,000k was extended by half a year. As of March 31, 2009, a total volume of EUR 60,000k (previous year: EUR 35,000k) was drawn on these credit lines.

DERIVATIVE FINANCIAL INSTRUMENTS

As a result of the adjustments to originally floating-rate promissory note loans as described above, GRENKELEASING was forced to terminate hedge accounting in the cases where these promissory note loans acted as hedging instruments in line with IAS 39. The change in the fair value of the agreed interest rate swaps was recognised in profit or loss as an expense totalling EUR 225k at the balance sheet date. Due to the discontinuation of the hedged item, the requirements for hedge accounting in line with IAS 39 are no longer met. Nevertheless, up to this point all hedge relationships have a high level of hedge effectiveness.

On February 13, 2009, GRENKELEASING contracted interest rate caps for an initial nominal volume totalling EUR 50,000k. The longest of the five caps concluded has a term ending in January 2012. The strikes contracted for all the caps are at 2.50 percent. The cap premium paid amounts to EUR 375k and the fair value of the caps as at March 31, 2009 is EUR 172k.

PENSIONS

The disclosed provision for pensions totals EUR 1,336 k at the balance sheet date.

EUR 1,160 k relates to the acquired Bank. This amount essentially corresponds to the present value of the obligation (DBO) of EUR 1,160k. An actuarial loss of EUR 5k was recognized in the reserves.

The Swiss subsidiary also has pension obligations of EUR 176 k (CHF 247k). This amount is the present value of the obligation (DBO) of EUR 611k (CHF 858k) minus the fair value of the plan assets of EUR 435k (CHF 611k). The actuarial loss of EUR 33k (CHF 46k) was recognized in the reserves. The actuarial loss was recognised in equity in a separate line under capital reserves in accordance with IAS 19.

DIVIDEND PAYMENT

The Annual General Meeting on May 12, 2009 is to resolve on the appropriation of GRENKELEASING AG's retained earnings for fiscal year 2008 of EUR 55,711,683.62. The Board of Directors and the Supervisory Board will propose a dividend of EUR 0.60 pershare. The Board of Directors will also propose to the Annual General Meeting that EUR 45,048,353.78 be transferred to revenue reserves. The remaining amount of EUR 2,452,870.44 after deduction of dividends totalling EUR 8,210,459.40 is to be carried forward to new account.

In the prior year, the Annual General Meeting adopted the proposal of the Board of Directors and the Supervisory Board, resolving to appropriate, and appropriating, the retained earnings for 2007 as follows:

Unappropriated profit carried forward	EUR 50,472,724.26
Distribution of a dividend of EUR 0.60 per share for a total of 13,684,099 shares	EUR 8,210,459.40
Transfer to revenue reserves	--
Profit carryforward (to new account)	EUR 42,262,264.86

The dividend was paid to the shareholders of GRENKELEASING AG on May 7, 2008.

RELATED PARTY DISCLOSURES

The Chairman of the Supervisory Board of GRENKELEASING AG, Prof. Dr. Ernst-Moritz Lipp, is now the Chairman of the Supervisory Board of Hesse Newman & Co. AG. In addition, the Chairman of the Board of Directors of GRENKELEASING AG, Mr. Wolfgang Grenke, and the member of the Board of Directors Mark Kindermann are also members of the Supervisory Board of the Bank. The Deputy Chairman of the Board of Directors of GRENKELEASING AG, Dr. Uwe Hack, is at the same time a member of the Board of Directors of Hesse Newman &Co. AG.

Phantom Stock Agreement

On March 12, 2007, the Supervisory Board of GRENKELEASING AG concluded a phantom stock agreement with, and for the benefit of, Dr. Hack. Under this agreement, Dr. Hack receives for the current fiscal year and the following fiscal year a claim to payment equal to the increase in value of 30,000 shares in GRENKELEASING AG in relation to a defined basic share price for the respective fiscal year.

The share price is the unweighted arithmetic mean of the Xetra closing prices on all trading days from December 1 to December 23 of the respective prior year. The basis share price for 2009 is EUR 19.28. The maximum payment arising from this agreement islimited to EUR 600,000 for the period of three years in total. Under the program, Dr. Hack is obligated to invest the respective net amount paid plus a personal contribution of 25 percent of that amount in GRENKELEASING AG shares.

The value of the phantom stocks granted totalled EUR 129k as at March 31, 2009. The plan was treated as a cash settlement plan. Changes in value are accordingly recognised proportionally as an expense in profit or loss in the amount of EUR 32k.

EMPLOYEES

In the reporting period, the GRENKELEASING AG Group employed an average of 502 employees (previous year: 474), excluding the Board of Directors.

SUBSEQUENT EVENTS

After the balance sheet date, the refinancing amounts due, totalling EUR 125,000k, were repaid at the specified date on April 20, 2009. The repayment was made predominantly from the Group's current cash flow. In addition, in this context a bond of EUR 10,000k was issued on April 20, 2009 as part of the DIP, with a term of two years and a variable coupon with a premium of 2.8%.

Together with Stadtsparkasse Karlsruhe, a new refinancing programme was launched, involving an agreement of EUR 10,000k for the purchase of German lease receivables.

THE BOARD OF DIRECTORS OF GRENKELEASING AG

THE SUPERVISORY BOARD OF GRENKELEASING AG

Name	Activity	Other Supervisory Board / Advisory Board Functions
Prof. Dr. Ernst-Moritz Lipp Age: 57 First elected: 2003 Elected until the Annual General Meeting 2012	Chairman of the Supervisory Board, Professor of international finance, General manager of ODEWALD & COMPAGNIE Gesellschaft für Betei- ligungen mbH, Baden-Baden, DE	TFL International GmbH, Weil am Rhein, DE; BOA Holding GmbH, Karlsruhe-Stutensee, DE; Oystar Holding GmbH, Karlsruhe, DE; walter services Holding GmbH, Ettlingen, DE
Gerhard E. Witt Age: 63 First elected: 1997 Elected until the Annual General Meeting 2012	Vice Chairman of the Supervisory Board, Public auditor and tax advisor, Baden-Baden, DE	Grenke Investitionen Verwal- tungs KGaA, Baden-Baden, DE
Dr. Bigitte Sträter Age: 68 First elected: 2001 Elected until the Annual General Meeting 2010	Member of the Supervisory Board, Owner and manager of the PR- Agency CENA, Düsseldorf, DE
Dieter Münch Age: 65 First elected: 2000 Elected until the Annual General Meeting 2010	Member of the Supervisory Board, Retired bank officer, Chairman of a foundation, Weinheim, DE	Grenke Investitionen Verwal- tungs KGaA, Baden-Baden, DE; Weisenburger Bau + Grund AG, Halle/Saale, DE
Dr. Oliver Nass Age: 40 First elected: 2005 Elected until the Annual General Meeting 2010	Member of the Supervisory Board, Commercial general manager of ESG France, Paris
Erwin Staudt Age: 60 First elected: 2005 Elected until the Annual General Meeting 2010	Member of the Supervisory Board, Economics graduate, President of the football club VfB Stuttgart 1893 e.V., Leonberg, DE	PROFI Engineering Systems AG, Darmstadt, DE; USU AG, Möglingen, DE; Hahn Verwaltungs-GmbH, Fellbach, DE

OVERVIEW OF THE GROUP

	GRENKELEASING AG
	Head office Baden-Baden (Germany)
WEBLEASE NETBUSINESS AG		Locations
Baden-Baden (Germany)			Berlin, Bremen, Dortmund, Dresden, Dusseldorf, Erfurt, Frankfurt, Hamburg, Hanover, Cologne, Leipzig, Magdeburg,
GLG Grenke-Leasing GmbH Baden-Baden (Germany)		Stuttgart	Mannheim, Memmingen, Mönchenglad- bach, Munich, Nuremberg, Rostock,
Grenke Investitionen Verwaltungs KGaA		Grenkefinance N.V.
Baden-Baden (Germany)		Vianen (Netherlands)
Hesse Newman & Co. AG		GRENKELEASING AG
Hamburg (Germany)		Vienna (Austria)
GRENKE LEASE Sprl		Location
Brussels (Belgium)		Salzburg
GRENKELEASING ApS		GRENKELEASING AB
Herlev (Denmark)		Stockholm (Sweden)
GRENKE LOCATION SAS		GRENKELEASING AG
Schiltigheim (France)		Zurich (Switzerland)
Locations		Locations
Aix-en-Provence, Lyon, Nantes, Lille, Paris I, Paris II, Paris III, Toulouse		Basel, Lausanne
			GRENKE ALQUILER S.A.
GRENKE LIMITED GRENKE FINANCE Plc.		Barcelona (Spain)
Dublin (Ireland)		GRENKELEASING s.r.o.
			Prague (Czech Republic)
GRENKE Locazione S.r.l. GRENKE LEASING S.r.l.			GRENKELEASING Sp. z o.o.
Milan (Italy)		Poznan (Poland)
Locations		Location
Genoa, Bologna		Warsaw
Grenke Leasing Ltd.

THE GRENKELEASING FRANCHISE SYSTEM

	Franchise partners
GRENKEFACTORING GmbH		GC Leasing Slovensko s.r.o.
Baden-Baden (Germany)		Bratislava (Slovakia)
GC Autoleasing GmbH		GRENKELEASING Kft.
Karlsruhe (Germany)		Budapest (Hungary)
Kazenmaier FleetService GmbH		Grenke Leasing S.R.L.
Baden-Baden (Germany)		Bucharest (Romania)
		GC Leasing Finland Oy
		Helsinki (Finland)
		GRENKE RENTING S.A.
		Lisbon (Portugal)
		GRENKE RENT S.A.
		Madrid (Spain)
		GRENKELEASING AS
		Oslo (Norway)

We have used our franchise system since 2003 to develop new markets quickly and for the long term. We have customized the system in line with our business model. Our goal is to introduce our business model and the GRENKELEASING brand to a country and make them known as quickly as possible. For this purpose, we rely on individuals with entrepreneurial spirit and a well-established network in the small-ticket IT business in each country. We give them an opportunity to establish their own company and work for the success of that company. The franchisees receive access to expertise, proven management tools, and back office support from GRENKELEASING and are entitled to use the "GRENKE" and "GRENKELEASING" brand names.

We also assume responsibility for the audit and refinancing of lease contracts. This is how we ensure that we are always informed of the exact quality of the receivables portfolio and that the GRENKE name becomes established on the market. GRENKELEASING does not hold a stake in these legally independent franchise entities, but after a specific period of usually four to six years, it has the option to buy the company on pre-defined terms. The structure of the purchase option creates incentives for growth as well as high level of quality of the receivables portfolio for the franchise partners.

In fiscal 2008, we expanded our franchise network considerably with a total of three new companies and, for the first time, acquired two franchise companies. We use the franchise system not only to penetrate new countries but also to develop new products beyond traditional small-ticket IT leasing. For instance, our partner Kazenmaier Fleetservice GmbH, Karlsruhe, Germany, has been offering financing for vehicle fleet management in the southern part of Germany since mid-2006. And at the beginning of 2006, GREN-KEFACTORING GmbH commenced its operations.

THE GRENKEFACTORING GMBH

With small-ticket factoring we are opening a market which does not currently exist in this form. Our goal is to offer to our existing customer network the factoring of smaller amounts which banks and traditional factoring companies would usually not purchase. This represents an organic development of our business model for small-ticket IT leasing, transferring our core competences –standardization and automation of business processes, efficiency and speed in their settlement –to additional types of financing.

We offer notification factoring, i.e., we take care of the entire receivables management, including the collection of receivables and any dunning letters to debtors. For small companies comprising our main target group, this is a significant additional service which relieves them of a substantial administrative burden. For GRENKELEASING, notification factoring, as opposed to non-notification factoring, means additional security against counterpartyrisk as debtors will only be discharged in respect to their payment obligations if they pay directly to us.

In Germany, factoring is still less common than in the rest of Europe, but is increasing significantly and is steadily developing into the third pillar of debt financing by companies in addition to bank loans and leasing.The general trend toward the use of factoring will be supported by the financial markets crisis as the banks will once again be much more restrictive in their lending.

GLOSSARY

ABCP Program

Abbreviation for "Asset-backed commercial paper program". Under ABCP programs, companies such as leasing companies sell their receivables to a special-purpose entity which issues interest-bearing securities to investors through the capital market. Interest and the principal payments on these securities are made using the cash flows from the assigned receivables on these securities.

ABS bond

Type of refinancing with which several tranches of bonds with different ratings (risk classes) are issued by the SPE. The share of the bestrated tranche is a reflection of the quality of a company's leasing portfolio and risk management and directly impacts the cost of this type of financing.

Asset Broker

GRENKELEASING sells used leased assets in Germany, France, Austria, and Switzerland via its internet portal www.asset-broker.com. Our resellers can also use the portal to sell their own demonstration equipment or used goods.

Average number of employees

This is the average number of employees of the GRENKELEASING AG Group in the reporting period. This figure does not include directors; part-time employees are included on a pro rata basis.

BDL

German Leasing Association "Bundesverband Deutscher Leasingunternehmen e.V." BDL, Berlin, www.leasing-verband.de

BITKOM

German Association for the Information Industry"Bundesverband Informationswirtschaft, Telekommunikation und neue Medien e.V.", Berlin, www.bitkom.org

Contribution margin

The "contribution margin", also known as gross profit, is a term used in operational cost accounting. The contribution margin is the contribution made, for example, by a product to cover fixed costs and generate a net profit. It is calculated as the difference between revenues and variable costs incurred directly by the product.

At GRENKE, contribution margin 1 is calculated as the present value of the interest margin net of commissions to third parties. Contribution margin 2 is made up of the present value of operating income of a lease contract less risk and variable administrative costs.

Cost/income ratio

Comparing expenses with income produces the "cost/income ratio". Contrary to approaches typically used in the banking sector, we deduct the cost of loss settlement/risk provisioning from income, even though this results in a less favourable ratio. Increased sales revenue in the leasing market would be possible if greater risks were taken. However, such a cosmetic improvement of the cost/income ratio cannot be the motivation for our business activities, and consequently we do not report in this way.

We determine the cost/income ratio as the ratio of the total of all expenses (less settlement of claims and taxes) to income, comprising net interest income from leasing business after loss settlement, net income from insurance business, net income from new business, additional income from realisation of assets, other operating income and net interest income (other than from leasing business).

DAXsector Financial Services Index

That sector index tracks the performance of stocks in the financial sector (excluding banks, which constitute a separate index) admitted to the Prime Standard. The index consists of 50 stocks. The Prime Financial Services Index is one of 18 sector indices of Deutsche Börse AG for the Prime Standard, which include companies of all sizes.

Debt issuance program

The debt issuance program is a flexible refinancing program with standardised documentation. It enables issuers to cover their financing needs by borrowing in various currencies and volumes and with varying terms. Within the scope of this program (long-term issue), bonds can be issued on the stock exchange or off the floor. The interest rate is fixed or variable. Depending on the volume, the bonds are placed by one or more dealer banks. The participating banks do not usually assume any underwriting risk. The issuer bears the placement risk.

DISPO framework agreement

Major customers who invest regularly in new equipment conclude a framework agreement with GRENKELEASING and benefit from standardised, attractive terms within that framework. The agreed leasing volumes can be drawn on in individual tranches by customers. Hence, customers benefit from favourable terms, lower costs and greater flexibility. The customer's reseller is informed of the framework agreement, giving him additional options for increasing business with this customer.

EBIT

Earnings before interest and taxes.

EBT

Earnings before taxes.

Embedded value

The income generated from a leasing contract is distributed over the term of the contract under IAS/ IFRS accounting. The majority of the profit from the contract portfolio on balance sheet date is therefore generated in the future. Based on similar approaches taken in the insurance industry, we calculate the approximate value of future net cash flows from the current contract portfolio on the balance sheet date as "embedded value", deduct the estimated expenses and add the equity.

Factoring

Factoring is a financial service for the purpose of short-term sales financing. The factor buys the factoring customer's receivables due from its debtor and collects them directly from the debtor. In return for relinquishing the receivables, the factor immediately pays the factoring customer a sum based on the value of the receivable.

Franchise system of GRENKELEASING

GRENKELEASING have used a franchise system since 2003 with the goal to introduce the business model and the GRENKELEASING brand to a country and make them known as quickly as possible.

The franchisees receive access to expertise, proven management tools, and back office support from GRENKELEASING and are entitled to use the "GRENKE" and "GRENKELEASING" brand names. GRENKELEASING also assume responsibility for the audit and refinancing of lease contracts. This is how GRENKELEASING ensuresthat they are always informed of the exact quality of the receivables portfolio and that the GRENKE name becomes established on the market.

GRENKELEASING does not hold a stake in these legally independent franchise entities, but after a specific period of usually four to six years, it has the option to buy the company on pre-defined terms.

Ifo Institute

"Institut für Wirtschaftsforschung e.V." The ifo institute is one of the largest economic research institutions in Germany which regularly publishes economic research results (www.cesifo-group.de).

IFRS

The International Financial Reporting Standards (IFRS) are external reporting regulations developed by the International Accounting Standards Board (IASB), an independent private body. The IFRS, formerly known as the International Accounting Standards (IASs), comprise the standards themselves and the interpretations by the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). As of fiscal year 2005, the application of these standards is compulsory for publicly traded companies with their registered office in the European Union (EU) in the form endorsed by the EU.

IT Asset Management

Customers who conclude a DISPO framework agreement (see above) are also offered active support for their IT infrastructure (inventory and cost management) in the form of our IT Asset Management tool ("ITAM"). This webbased software facilitates the management of the customer' s entire asset portfolio using a standard platform.

ITC-Market

IT and telecommunications market

Itraxx – Europe Index

The Itraxx Index is based on the most liquid 125 referencing European borrowers with good creditworthiness for credit default swaps (CDS). A CDS is an over-the-counter contract where a protection seller assumes a credit risk to which the protection buyer is exposed in return for a risk premium. The protection seller undertakes to make a compensatory payment to the protection buyer in the event of payment delay or failure by the borrower. The Itraxx Europe indicates the yields of the 125 most traded European corporate bonds in comparison to European government bonds with triple A rating. The Itraxx Europe Financial Senior contains 25 financial companies.

Mean acquisition value

The "mean acquisition value" is determined as the arithmetic mean of the acquisition costs of all leased assets for which lease agreements were concluded in the reporting period.

New business

"New business" comprises the acquisition costs of all newly acquired assets from leasing and lease-purchase con-tracts and the factoring volume in the reporting period.

Prime Financial Services Index

That sector index tracks the performance of stocks in the financial sector (excluding banks, which constitute a separate index) admitted to the Prime Standard. The index consists of 50 stocks. The Prime Financial Services Index is one of 18 sector indices of Deutsche Börse AG for the Prime Standard, which include companies of all sizes.

Prime Standard

The Prime Standard is a listing standard of the Frankfurt Stock Exchange with transparency requirements for issuers which exceed those of the General Standard (e. g. quarterly reports have to be published and all corporate communication must also be available in English). A listing in the Prime Standard is a requirement for a listing on one of Deutsche Börse's selective indices such as the DAX, MDAX, Tec-DAX, or SDAX. GRENKELEASING AG is listed in the SDAX.

Rating

Rating agencies rate the creditworthiness of an issuer over long and short-term periods using a standard rating method. "AAA", for example, is the highest solvency rating, and "C" or "D" indicates a low probability of payment. The leading rating agencies are Moody's and Standard & Poor's.

RoE

Abbreviation for "return on equity". The return on equity is calculated as a ratio of the net profit to the equity disclosed in the balance sheet. The ratio gives an indication as to the return on shareholder capital.

Scoring system

A scoring system is used at leasing companies to determine the creditworthiness of a potential lessee. Using a statistical calculation, the probability of default is determined for a new lease agreement, which forms the basis for a decision as to whether or not to accept the application for a lease.

Since 1994, GRENKELEASING has assessed the creditworthiness of its lessees using a scoring system, based on external sources of information, e.g. the credit rating agency Creditreform, and supplemented by its own database. Each potential lessee receives a score which ultimately sways the decision as to whether or not a lease agreement is concluded.

SDAX

The SDAX index contains the 50 largest and most liquid companies from classic sectors ranking just below the MDAX, which comprises 50 stocks, and the DAX, which comprises 30 stocks. These may include German and foreign companies, as long as they are listed in the Prime Standard. On January 1, 2003, GRENKELEASING was admitted to the Prime Standard and listed on the SDAX as of February 11, 2003. This new regulation became effective as of March 24, 2003.

Share of corporate customers in the lease portfolio

"Corporate customers" are all lessees who are not subject to specific consumer protection regulations. The figure relates to the number of newly concluded lease agreements in the reporting period.

Share of IT products in the lease portfolio

"IT products" refers to computer equipment (such as PCs, servers, printers), copiers and communication equipment. The figure relates to the number of newly concluded lease agreements in the reporting period.

Small caps

Small companies which do not belong to the highly traded companies of the main indices.

Small-ticket IT leasing

In this market segment, equipment such as notebooks, personal computers, monitors and other peripheral devices, smaller networks, software and telecommunications, backup and copier technology normally costing up to EUR 25,000 are leased.

Volume of leased assets

The volume of leased assets is the total of all (historical) acquisition costs of assets from ongoing leasing and lease purchase agreements.

CALENDAR OF EVENTS 2009

Apr. 30, 2009	Publication of Quarterly Financial Report as per March 31, 2009
	May 12, 2009 Annual General Meeting in Baden-Baden
July 28, 2009	Publication of Quarterly Financial Report as per June 30, 2009
Oct. 28, 2009	Publication of Quarterly Financial Report as per September 30, 2009 DVFA Analyst Conference in Frankfurt (Main)

CONTACT

Renate Hauss Corporate Communications

GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden

Tel.: +49 (0) 7221 5007-204 Fax: +49 (0) 7221 5007-112

www.grenke.de www.weblease-europe.com www.asset-broker.com

E-Mail: investor@grenke.de

The report is published in German and as an English translation. In the event of any conflict or inconsistency between the English and the German versions, the German original shall prevail.

GRENKELEASING AG Neuer Markt 2 D - 76532 Baden-Baden

Telefon: +49 (0) 7221 5007-204 Telefax: +49 (0) 7221 5007-112

www.grenke.de www.weblease-europe.com www.asset-broker.de

E-mail: investor@grenke.de