Grenke AG — Interim / Quarterly Report 2011

May 4, 2011

GRENKELEASING AG Group

Quarterly Financial Report as per March 31, 2011

KEY FIGURES	2
LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS	4
THE GRENKELEASING AG SHARE	5
INTERIM MANAGEMENT REPORT	7
The Group's Growth Strategy	7
Economic Environment	9
Report on the Results of Operations	9
Report on the Financial Position and Net Assets	11
Report on Forecasts and the Outlook for the Group	12
INTERIM FINANCIAL STATEMENTS	15
SELECTED EXPLANATORY NOTES	24
CALENDAR OF EVENTS 2011 AND CONTACT	31

KEY FIGURES GRENKE GROUP

	Jan. 1 to	Change	Jan. 1 to
	March 31, 2011	(%)	March 31, 2010	Units
New business
GRENKE Group incl. franchise partners*	191,930	27.8	150,148	EURk
– of which Germany	74,930	19.8	62,549	EURk
– of which International	102,599	32.4	77,468	EURk
– of which Franchise international	14,401	42.1	10,131	EURk
Leasing business	178,730	24.9	143,045	EURk
– of which Germany	63,364	14.3	55,446	EURk
– of which International	102,599	32.4	77,468	EURk
– of which Franchise international	12,767	26.0	10,131	EURk
Factoring	13,200	85.8	7,103	EURk
– of which Germany	11,566	62.8	7,103	EURk
– of which Franchise international (CH)	1,634	n. a.	0	EURk
Contribution margin 2 (CM2) of New business
GRENKE Group incl. franchise partners*	26,004	11.6	23,293	EURk
– of which Germany	8,608	9.5	7,864	EURk
– of which International	15,050	10.7	13,594	EURk
– of which Franchise international	2,346	27.8	1,835	EURk
Leasing business	25,639	10.8	23,142	EURk
– of which Germany	8,284	7.4	7,713	EURk
– of which International	15,050	10.7	13,594	EURk
– of which Franchise international	2,305	25.6	1,835	EURk
Further Information Leasing business
Number of new contracts	22,693	17.5	19,311	units
Share of IT products in the lease portfolio	88	–1.1	89	percent
Share of corporate customers in the lease portfolio	100	0.0	100	percent
Mean acquisition value	7.9	6.8	7.4	EURk
Mean term of contract	46	0.0	46	months
Volume of leased assets	1,985	13.8	1,745	EURm
Number of current contracts	258,992	12.0	231,172	units
GRENKE BANK
Deposits perMarch 31	133,910	0.9	132,666	EURk
Business start-up financing volume perMarch 31	72	n. a.	0	EURk

* incl. Factoring

KEY FIGURES GRENKE CONSOLIDATED GROUP

	Jan. 1 to	Change	Jan. 1 to
	March 31, 2011	(%)	March 31, 2010	Units
Key figures income statement
Net interest income	22,160	18.9	18,632	EURk
Settlement of claims and risk provisioning	8,145	–14.1	9,486	EURk
Profit from insurance business	5,709	–3.6	5,921	EURk
Profit from new business	7,391	20.7	6,124	EURk
Profit from disposals (income exceeding the calculated residual value)	1,240	179.3	444	EURk
Other operating income	885	18.3	748	EURk
Costs of new contracts	4,965	23.4	4,024	EURk
Costs of current contracts	1,561	10.4	1,414	EURk
Project costs and basic distribution costs	4,980	32.9	3,746	EURk
Management costs	4,288	33.1	3,222	EURk
Other costs	2,194	150.2	877	EURk
Profit from operating business	11,252	41.8	7,937	EURk
Other interest result	–130	–0.8	–131	EURk
Income/expenses from market valuation of financial instruments	70	–71.8	248	EURk
EBT (Earnings before taxes)	11,192	39.0	8,054	EURk
Net profit for the period	8,386	45.2	5,776	EURk
Earnings per share (according to IFRS)	0.61	45.2	0.42	EUR
Further information
Dividend (2011 planned distribution)	0.70	16.7	0.60	EUR
Embedded value of the leasing contract portfolio (incl. equity before taxes)	420	11.4	377	EURm
Embedded value of the leasing contract portfolio (incl. equity after taxes)	385	11.3	346	EURm
Cost/income ratio	61.8	–4.8	64.9	percent
Return on equity (ROE) after taxes	11.3	32.9	8.5	percent
Average number of employees	556	5.7	526	persons

LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear Shareholders, Ladies and Gentlemen,

With the effects of the international financial crisis now fully surmounted, we saw a strong start to fiscal year 2011. Our expansion strategy is continuing in full swing: in the first quarter of 2011 the GRENKE Group including franchise partners increased its new business by almost 28 percent. This means that, without compromising our conservative risk orientation, we seamlessly matched our high growth in the previous year. At 14.3 percent, the contribution margin 2 for new business in the GRENKE Group's leasing business was back at the normal profitability level before the crisis. Our announcement that this systematic focus on growth would quickly translate into rising income was also substantiated.

We are continuing to take advantage of the differing prospects in different European countries in a targeted way and are focusing primarily on regional target markets with lower-than-average competitive intensity. Our expansion throughout Europe continued to bear fruit, with international business once again accounting for the majority of the Group's new business (61.0 percent). At the same time, business within Germany has also been developing positively for several quarters despite stronger competition here. In the last three-month period, new business in Germany was expanded by 19.8 percent.

We are generating this growth with continued sound capital resources. At 17.2 percent, the GRENKE Group's equity ratio as at 31 March 2011 was at the level at year-end 2010 and therefore is still higher than our long-term target level of 16 percent. We are thus securing our very good reputation on the debt markets. To finance our growth, we again made use of our wide range of refinancing sources in the reporting quarter. A particularly noteworthy recent measure was that we succeeded in refinancing French lease receivables trough an ABS transaction. In addition, the majority of repayments still due after the end of the reporting quarter in fiscal year 2011 have already been refinanced. There are therefore no further major refinancing measures pending for the rest of the fiscal year.

Overall, a continued high level of growth can be expected over the remaining course of 2011. This should have a positive impact on earnings, especially since the high-margin new business of the previous two years is stimulating consolidated earnings more strongly as the term of these agreements progresses. Although our systematic expansion in Europe will result in increasing related expenses in 2011, too, this increase will be more moderate than the growth in our income and we are therefore maintaining our forecast of net profit of EUR 33 million to EUR 36 million in the current fiscal year.

Baden-Baden, May 2011

Wolfgang Grenke Chairman of the Board of Directors

THE GRENKELEASING AG SHARE

The GRENKELEASING AG share outperformed the market in the first three months of fiscal year 2011. Starting the year with a price on Xetra of EUR 38.65, the share rose by 9.3 percent to end the quarter at EUR 42.25 on March 31. In the same period, the SDAX index fell by 2.1 percent since the beginning of the year. The DAXsector Financial Services index, which tracks the German financial sector in the Prime Standard, also decreased slightly by 0.5 percent.

The GRENKELEASING AG share continued to perform positively from mid-February on, whilst the two benchmark indices have since entered a consolidation phase which continued after the end of the quarter until the current date. Another cause was the comparatively minor adjustment following the natural catastrophe and nuclear reactor disaster in Japan, which had a greater impact on both the SDAX and the sector index.

Following our announcement on new business for the first quarter, the analysts maintained their predominantly positive assessments. In mid-April 2011, the Reuters Consensus Estimates showed four "buy" recommendations (including two "strong buy") and three recommendations to "hold" the GRENKELEASING AG share. There were no recommendations to sell the share. On average, the analysts set a target price of EUR 43.36 (median: EUR 44.00).

DEVELOPMENT OF THE SHARE PRICE AND DAILY TURNOVER

INTERIM MANAGEMENT REPORT

GROWTH STRATEGY

GRENKELEASING is a growth company. This was highlighted impressively once again by the development of the GRENKELEASING AG Group (below: "GRENKE Group" or "Group") in the global financial markets crisis and the following recession. After we quickly returned to very high growth rates in 2010 already and this development persisted in the reporting quarter, the effects of the financial markets crisis and the recession are fully surmounted. In 2010 more than half of the Group's new business – i.e. the sum of the cost of newly acquired leased assets and the factoring volume – was generated in our international markets, a trend that likewise continued in the first quarter of 2011. We are systematically expanding the market presence we have now established in many countries. In the reporting quarter, we expanded the network of our locations with "cell divisions" in Italy (Brescia) and in Ireland (Cork). In addition, our franchise partner in Spain (Madrid) opened another location in Malaga. In April 2011, another cell division took place within the Group in France (Grenoble). We are also continuing to work on our market presence in Turkey. As a result, continued strong and profitable growth can be expected in the future, too.

Alongside regional growth, we are also further broadening our product range and our range of financing solutions on an ongoing basis. Here, our focus is on indirect and online sales channels to commercial customers and on automated contract settlement. With this range we can also offer small contract volumes at attractive conditions for customers, while still generating attractive margins for GRENKE. We take care to ensure a broad diversification of our portfolio across different customers and sectors and small average financing volumes in order to limit risks. We do not compromise on our strategic targets for capital resources and profitability.

In addition to purchasing lower-volume receivables (factoring) and car rental, since 2010 our new products include the following two new offers from GRENKE BANK AG. In March 2010 we established a cooperation agreement between NRW.BANK in Dusseldorf, GRENKELEASING AG and GRENKE BANK AG. Thanks to this cooperation agreement, small and medium-sized enterprises and freelance professionals in North Rhine-Westphalia will be able to obtain development funds if they finance new purchases of operating equipment through leases. This model has proved highly successful in just a very short time, with 1,805 contracts generated by the end of 2010 and an additional 447 in the reporting quarter.

Also in March 2011, GRENKE BANK AG could look back at its first year of accreditation by KfW-Mittelstandsbank for its business start-up programme "KfW-StartGeld". The innovative Internet platform developed by GRENKE BANK AG on the basis of our many years of extensive experience in the field of IT-based contract settlement offers entrepreneurs quick and simple access to "KfW-StartGeld" and is developing well. New business start-ups, self-employed professionals and small companies that have existed for no more than three years can receive support of up to EUR 50,000 per inquiry from KfW-Mittelstandsbank. The volume of business start-up financing transferred in the reporting quarter amounted to EUR 0.1 million after EUR 0.3 million in 2010 as a whole.

Expansion in Europe

* Austria, Belgium, Czech Republic, Denmark, Finland, Hungary, Ireland, Luxembourg, Norway, Romania, Slovakia, Slovenia, Sweden

ECONOMIC ENVIRONMENT

The economic development seen in the final quarter of 2010 continued in the first quarter of 2011. An encouraging development in Germany contrasted with a more mixed picture in the rest of Europe. Germany is still experiencing an upturn, with rising employment stimulating both domestic demand and the robust investing activities by companies, according to Deutsche Bundesbank in its monthly report from March 2011. At the same time, exports are running at full steam. German companies are accordingly highly confident in the economic survey conducted by the ifo Institute in March and rate their current business position better than previously. The Consumer Climate Index by market research company GfK rose again in March 2011 – a trend that has persisted since mid-2010. The indicators for April and thus for the second quarter suggest that consumers and companies alike will continue to assess their position at a high level. The natural catastrophe and nuclear reactor disaster in Japan have not yet had any significant impact on expectations.

In Europe, however, the high level of government debt in many countries and the resulting enforced public-sector austerity programmes and budget cuts are having a negative impact. These measures are reflected in generally weak domestic demand, particularly in private consumption, due to the continued high unemployment rates in these countries.

REPORT ON THE RESULTS OF OPERATIONS

The return to our previous growth strategy after the end of the financial market crisis and the related concentration on increasing new business were reflected in a sharp rise in earnings in the first quarter of 2011. In fiscal year 2010 the GRENKE Group increased its new leasing business by 43.3 percent to EUR 649.9 million. Our announcement that this systematic focus on growth would quickly translate into rising income was thus substantiated. In fact, we can report increasing contributions from almost all income components.

In the reporting quarter, net interest income rose by 18.9 percent year-on-year from EUR 18.6 million to EUR 22.2 million. This strong increase is due firstly to the contribution margin 2 for new business in 2009, which had been increased significantly in order to take into consideration the exceptional uncertainty of 2009 and is now reflected fully in net interest income. Secondly, the strong growth in 2010 also increased income where we re-adjusted the contribution margin 2 in order to stimulate growth. The development from quarter to quarter demonstrates the success of this strategy: the first quarter of 2011 is the fifth consecutive quarter with rising net interest income.

The negative impact from settlement of claims and risk provisioning fell by 14.1 percent year-on-year to EUR 8.1 million. Irrespective of the usual fluctuations during the quarter, this decrease also shows that the effects of the financial crisis have been surmounted. At 1.7 percent, the loss rate has decreased significantly from the cyclical high point of the last recession.

Profit from insurance business amounted to EUR 5.7 million in the first quarter of 2011 and was thus approximately at the previous year's level of EUR 5.9 million. Profit from the rapidly growing new business increased considerably by 20.7 percent to EUR 7.4 million after EUR 6.1 million. Profit from disposals, which often fluctuates considerably from quarter to quarter, climbed to EUR 1.2 million in the reporting quarter after EUR 0.4 million in the previous year. Total operating income therefore increased by 31.1 percent to EUR 28.4 million after EUR 21.6 million in the same quarter of the previous year.

Operating expenses reflected the Group's strong growth. For example, selling and administrative expenses climbed by a total of 30.7 percent to EUR 7.3 million after EUR 5.6 million in the previous year. However, the administrative expenses included in this amount saw a significantly lower increase of less than 10 percent. The increase in other operating expenses also resulted to a large extent from non-cash expenses from currency effects.

Overall, the operating result in the opening quarter of 2011 grew by an impressive 41.8 percent to EUR 11.3 million after EUR 7.9 million in the previous year. This figure is higher than the result for the first quarter 2009 (EUR 10.5 million), when the effects of the financial markets crisis had not yet had much impact. The net profit for the reporting period increased even further due to a lower tax rate including deferred taxes. It rose by 45.2 percent to EUR 8.4 million after EUR 5.8 million in the previous year.

Report on the development of the segments

The Group divides its activities into the following segments: Leasing Business, Banking Business and Factoring Business. In managing the Leasing Business, the Group essentially focuses on the individual countries and regions. Thus, the Leasing Business segment represents a combination of several operating segments defined by countries or groups of countries and making up the reportable Leasing Business segment. The Banking Business segment comprises the activities of GRENKE BANK AG, whose business focuses primarily on German customers. The Factoring segment includes the activities of GRENKEFACTORING GmbH, which performs traditional factoring services in Germany as a financial services provider.

With operating segment income of EUR 27.1 million after EUR 21.0 million in the previous year and a segment result of EUR 10.4 million after EUR 8.5 million, Leasing Business is still the GRENKE Group's main source of income, while the Banking and Factoring Business segments are relatively new activities that are still in the development stage and are also much less extensive. The results for these segments are therefore lower. GRENKE BANK AG generated a segment result of EUR 0.8 million in the reporting quarter after a loss of EUR 0.4 million, while Factoring Business was just above the breakeven point after a loss of EUR 0.2 million in the previous year. The comments on the Group's earnings performance presented in the previous chapter (Report on the results of operations) therefore also apply to the Leasing Business segment to a significant extent.

The earnings contributions in Leasing Business vary depending on the individual regions. The growth rates in wellestablished markets are also naturally lower than in markets where we are still in the development phase. When considering the Germany segment it should be noted that part of the administrative functions of the GRENKE Group are located at headquarters in Baden-Baden and the costs of these are therefore incurred in this segment. This also includes costs for international expansion. In the reporting quarter, operating segment income of EUR 10.7 million was generated in Germany after EUR 9.1 million in the previous year. The segment result declined from EUR 2.5 million to EUR 1.5 million, primarily due to the reasons specified above. In addition, we have had very high market penetration on our domestic market of Germany for many years, meaning that the prospects for further growth are not as strong in comparison.

The same generally applies in Switzerland, although high growth rates were generated here in the reporting quarter, with operating segment income rising by 51.4 percent from EUR 1.0 million to EUR 1.5 million and the segment result more than doubling from EUR 0.4 million to EUR 0.9 million. Our growth regions, above all France and Italy, produced particularly high earnings and growth contributions. We are continuously increasing our market penetration in France, the Group's largest international market, and in Italy and are generating correspondingly significant growth in both countries. This trend continued in the reporting quarter: in France, operating segment income increased by 23.0 percent to EUR 5.3 million after EUR 4.3 million and the segment result rose by 35.7 percent year-on-year to EUR 3.3 million after EUR 2.4 million. In Italy, operating income was up 31.9 percent at EUR 3.7 million after EUR 2.8 million and the segment result climbed by 23.3 percent to EUR 2.3 million after EUR 1.8 million.

Our other countries that comprise the "Others" region also now contribute significantly as a whole to consolidated earnings. Their operating segment income increased by 56.4 percent to EUR 5.9 million in the first quarter of 2011 after EUR 3.8 million in the previous year and their segment result was up 96.7 percent at EUR 2.5 million after EUR 1.3 million.

With regard to the development of new business, the considerably stronger international growth continued in the reporting quarter, although Germany also saw double-digit growth again. New business in Germany rose, due partly to the economic environment, by 14.3 percent to EUR 63.4 million after EUR 55.4 million in the previous year. On the international markets, we increased new business particularly substantially by 32.4 percent to EUR 102.6 million after EUR 77.5 million. Our largest international market, France, increased its volume by 18.3 percent to EUR 41.1 million in the reporting quarter after EUR 34.7 million. Italy and the UK, up by 102.9 percent (EUR 25.6 million after EUR 12.6 million) and 31.3 percent (EUR 8.8 million after EUR 6.7 million) respectively, were our strongest growthmarkets. We see further considerable growth potential in both countries for the future. Following the cell division in Brescia, we are now represented by six locations in Italy, with three cell divisions taking place in the last twelve months alone.

In the Factoring Business segment, the volume of new business of EUR 13.2 million was considerably higher than the previous year's figure of EUR 7.1 million. However, major fluctuations are not uncommon here – for instance, in the first quarter of 2009, a volume of EUR 14.0 million was achieved. We are still not yet pressing ahead with this business, but instead are working on joint solutions for our factoring and banking subsidiaries to be launched in future.

REPORT ON THE FINANCIAL POSITION AND NET ASSETS

As a result of the expansion of our new business in the first quarter of 2011, lease receivables climbed by 3.7 percent to EUR 1,377.6 million after EUR 1,328.2 million at the end of fiscal year 2010. Overall, total assets increased roughly in line with the increase in lease receivables: by 2.9 percent to EUR 1,718.9 million after EUR 1,671.0 million at the end of fiscal year 2010. Despite the considerable growth in new business, the equity ratio as at March 31, 2011 remained at the high level as at the balance sheet date in 2010. At the end of the reporting quarter, the equity ratio was unchanged at 17.2 percent. In absolute terms, equity increased by EUR 8.2 million or 2.8 percent to EUR 296.0 million. The equity ratio is still higher than our target level of 16 percent.

To finance the lease receivables, we made use of our wide range of refinancing sources in the reporting quarter. We also employed available cash and cash equivalents in some cases, which consequently decreased to EUR 68.0 million after EUR 78.3 million at the end of fiscal year 2010. In addition to this, we used deposit business, which rose by EUR 11.7 million to EUR 133.9 million. Liabilities from refinancing increased by EUR 32.5 million to EUR 1,140.0 million.

Cash flow from operating activities increased significantly to EUR 8.5 million in the reporting quarter due to the earnings situation and as a result of borrowing to refinance lease receivables, after negative cash flow of EUR –24.4 million in the first quarter 2010. This significant change in other assets in comparison with the previous year (EUR –15.3 million after EUR 19.3 million) is due to the following factors: In the first quarter of 2010, the loan from an ABS transaction was settled

as against the comparison reporting date at the time, i.e. 2009 (EUR 17.7 million), whilst loans from another ABS transaction were borrowed in the reporting quarter (EUR 12.0 million). After taxes and the still immaterial net interest, net cash flow from operating activities amounted to EUR –9.1 million after EUR –28.5 million in the same quarter of the previous year.

Cash flow from investing activities remained low in the reporting quarter at EUR –1.2 million after EUR –0.2 million. Repayment of bank liabilities totalling EUR 0.3 million led to a corresponding cash outflow from financing activities, whereas in the past year there had been an inflow of EUR 7.2 million due to receiving development funding from NRW.Bank. In total, cash flows therefore amounted to EUR –10.6 million in the first quarter of 2011, compared with EUR –21.6 million in the previous year.

The refinancing measures in the first quarter of 2011 included in particular the fact that in January we succeeded in selling French lease receivables for the first time to the special-purpose entity Arabella Finance Limited initiated by UniCredit Bank AG last year. The ABCP programme with Arabella has a volume of EUR 100 million. In addition, we issued a new promissory note loan with a volume of EUR 10 million in February 2011 and, in March, a new bond with a volume of EUR 75 million with a lower financing margin than in 2010. In the same month, promissory note loans worth EUR 38 million that had matured were repaid in full. The vast majority of repayments still due after the end of the reporting quarter in fiscal year 2011 have already been refinanced. There are therefore no further major refinancing measures pending for the remainder of this fiscal 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 for the GRENKE Group described in the 2010 annual report are still relevant. No new risks have arisen. In general, we see considerably more opportunities for our business development than the usual risks related to our business model.

For instance, demand for lease finance – measured in terms of the number of inquiries received and the average value per lease – has not only remained consistently high but is even continuing to increase. This allows us to strongly increase new business while also maintaining attractive margins and our well-developed risk limitation policy. Additional locations, branches and franchise partners will also contribute to continued high growth in the future.

The availability of refinancing funds is not a limiting factor for our growth. The capital markets provide sufficient funds for issuers of good standing. We successfully made use of these possibilities in the reporting quarter as part of our currently only limited refinancing needs. Access to banking deposits at GRENKE BANK AG offers us an additional, very attractive source of refinancing that we employ flexibly.

There are risks to income development arising in particular from the growth in losses due to the recession. The development of losses traditionally shows a certain degree of fluctuation during the year. However, the general development of losses confirms our expectations that the loss rate has passed its high point and is likely to decrease further on the whole over the course of 2011 as a result of the improving macroeconomic conditions.

The risk of rising interest rates remains significant for the earnings performance. Our assessment last year that, in light of the extreme global increase in liquidity, rising inflation rate expectations as a result of a more favourable economic development and therefore also increasing interest rates were to be expected, has since been confirmed. However, we consider the recent development as a normalisation that does not lead us to infer any increased risks for our refinancing needs. As mentioned above, our total refinancing needs for the current fiscal year are in any case only very limited. In fact, there are no further major refinancing measures pending for the rest of the year.

With regard to refinancing lease receivables, the Group is subject to interest rate risks to only a limited extent as the refinancing – if subject to a floating rate at all – is hedged using derivatives. In new business, however, risks may arise as a result of changes in interest rates and spreads. The time lag with which we pass on interest rate changes to customers can therefore have a temporary impact on the profitability of new business.

Overall economic outlook

In their spring 2011 forecasts, the German federal government and German economic research institutes anticipate higher real economic growth in Germany than previously expected. The German federal government raised its growth expectation for real gross domestic product in 2011 to 2.6 percent, and the research institutes' forecasts are even more optimistic at 2.8 percent.

The main cause of this greater optimism is the increasing domestic impetus. Private consumption, driven by continued rising employment, is expected to grow by 1.2 percent according to the research institutes or by 1.3 percent according to the German federal government. This would mean that consumers' contribution to growth in 2011 would be three times that of the previous year. Companies are expected to continue equipment investments with robust double-digit growth (10.5 percent and 10.7 percentrespectively) at roughly the same level as in the previous year. Although export momentum, which was still very strong in 2010, will slow somewhat, the research institutes and government still expect persistent high export growth of 9.8 percent and 7.5 percent respectively.

In our view, the recent interest rate measures taken by the European Central Bank represent a first step towards normalisation of the economic interest rate environment and will most likely affect the further economic development only slightly. Effective April 13, 2011, the ECB raised the interest rate for main refinancing transactions of the euro system by 25 basis points to 1.25 percent, the interest rate for the marginal lending facility by 25 basis points to 2.00 percent, and the interest rate for the deposits facility by 25 basis points to 0.50 percent. Refinancing shortages for the GRENKE Group as a result of these measures are not expected.

According to the International Monetary Fund (IMF), the global economy will continue to be overshadowed by numerous risks in the current year. These include the economic effects of the natural and nuclear disaster in Japan, which cannot yet be foreseen; the risks of overheating in numerous emerging economies, particularly China; the undiminished debt issues in a large number of both industrialised nations and emerging and developing economies; the persistent global imbalances; and in particular the sharp increase in commodity prices and the associated inflation risks.

However, the IMF still only expects a slight decline in global economic growth from 5.0 percent in 2010 to 4.4 percent in the current year. As was the case in 2010, developing and emerging economies will see much stronger growth (6.5 percent) than industrialised nations (2.4 percent). The IMF is also much more optimistic for Germany than for Europe as a whole. Whilst for Germany it anticipates growth of 2.5 percent in the real GDP, for the euro zone it forecasts significantly lower growth of only 1.6 percent, due in particular to the continued debt issues in certain European countries and the associated public-sector austerity budgets.

Expected business development

In the first quarter of fiscal year 2011, we generated growth in new business of 27.8 percent to EUR 191.9 million in the GRENKE Group including franchise partners. In the same quarter of the previous year, there had been growth of 26.6 percent to EUR 150.1 million. The GRENKE Group has therefore also seamlessly continued the very positive growth trend of the closing quarter of 2010. Our confidence expressed in the 2010 annual report of generating growth of over 20 percent in 2011 was more than confirmed in the first quarter of the year. The contribution margin 2 for new business in the GRENKE Group was EUR 26.0 million and, measured by the contribution margin 2 for leasing business of 14.3 percent, reached the normal profitability of the pre-crisis level.

We are continuing to take advantage of the differing prospects of the different European countries in a targeted way and are focusing primarily on the regional target markets where competitive intensity is lower than average. The continued high growth expected during 2011 not least for this reason should continue to positively impact net interest income. This also still applies to the previous years' high-margin new business, which will stimulate consolidated earnings more strongly as the term of these agreements progresses. With regard to the loss rate, we anticipate a downwards trend over the course of the year, as the highly robust economic development in Germany should lead to considerably fewer insolvencies in industry.

At the same time, these positive earnings prospects will be countered by higher expenses, particularly selling and administrative expenses, in 2011 too as a result of our systematic expansion in Europe. However, since this increase will be more moderate, we are maintaining our forecast of net profit of EUR 33 million to EUR 36 million in the current fiscal year.

CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM JANUARY 1 TO MARCH 31, 2011

	Jan. 1 to	Jan. 1 to
EURk	March 31, 2011	March 31, 2010
Interest and other income from financing business	34,197	29,287
Expenses from interest on refinancing and on deposit business	12,037	10,655
Net interest income	22,160	18,632
Settlement of claims and risk provision	8,145	9,486
Net interest income after settlement of claims and risk provision	14,015	9,146
Profit from insurance business	5,709	5,921
Profit from new business	7,391	6,124
Profit from disposal	1,240	444
Income from operating business	28,355	21,635
Personnel expenses	8,638	7,371
Depreciation	646	664
Selling and administration expenses (excl. personnel expenses)	7,267	5,562
Other operating expenses	1,437	849
Other operating income	885	748
Profit/loss from operating business	11,252	7,937
Expenses/income from the fair value measurement	70	248
Other interest income	78	165
Other interest expenses	208	296
Earnings before taxes (EBT)	11,192	8,054
Income taxes	5,698	3,516
Deferred taxes	–2,892	–1,238
Net profit for the period	8,386	5,776
Earnings per share (basic) in EUR	0.61	0.42
Earnings per share (diluted) in EUR	0.61	0.42
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 TO MARCH 31, 2011

	Jan. 1 to	Jan. 1 to
EURk	March 31, 2011	March 31, 2010
Net profit for the period	8,386	5,776
Allocation/reduction of the hedging reserve (before taxes)	477	429
Income taxes	–22	–100
Allocation/reduction of the hedging reserve (after taxes)	455	329
Allocation/reduction of reserve for actuarial profits and losses (before taxes)	34	56
Income taxes	–8	–13
Allocation/reduction of reserve for actuarial profits and losses (after taxes)	26	43
Change of currency translations	–687	1,267
Other comprehensive income for the period	–206	1,639
Total comprehensive income	8,180	7,415

CONSOLIDATED BALANCE SHEET AS PER MARCH 31, 2011

EURk	March 31, 2011	Dec. 31, 2010
Assets
Current Assets
Cash	67,992	78,297
Financial instruments with positive market value (short term portion)	49	1,255
Lease receivables	517,927	508,325
Other current financial assets	81,327	77,434
Trade receivables	4,874	3,845
Lease assets for sale	8,044	8,159
Tax receivables	2,319	572
Other current assets	60,222	54,913
Total current assets	742,754	732,800
Non-current assets
Lease receivables	859,675	819,899
Financial instruments with positive market value (long term portion)	1,423	1,115
Other non-current financial assets	45,573	43,831
Property, plant and equipment	36,368	35,645
Goodwill	12,923	12,985
Other intangible assets	1,555	1,660
Deferred tax assets	18,126	22,575
Other non-current assets	500	483
Total non-current assets	976,143	938,193
Total assets	1,718,897	1,670,993

CONSOLIDATED BALANCE SHEET AS PER MARCH 31, 2011

EURk	March 31, 2011	Dec. 31, 2010
Liabilities and equity
Liabilities
Current liabilities
Refinancing liabilities	255,850	320,582
Liabilities from deposit business	91,013	87,624
Short-term debt	896	684
Financial instruments with negative market value (shortterm portion)	2,028	5,449
Trade payables	13,864	6,194
Tax liabilities	4,925	14,795
Deferred liabilities	4,897	4,713
Provisions	3,367	3,452
Other current liabilities	6,225	7,411
Deferred lease payments	75,762	67,300
Total current liabilities	458,827	518,204
Non-current liabilities
Refinancing liabilities	884,194	786,961
Liabilities from deposit business	42,898	34,615
Long term debt	2,750	3,094
Financial instruments with negative market value (long term portion)	3,158	1,583
Deferred tax liabilities	28,894	36,361
Pensions	1,557	1,566
Other non-current liabilities	666	836
Total non-current liabilities	964,117	865,016
Equity
Capital stock	17,491	17,491
Capital reserve	60,166	60,166
Retained earnings	114,897	89,054
Other components of equity	969	1,175
Balance sheet profit	102,430	119,887
Total equity	295,953	287,773
Total liabilities and equity	1,718,897	1,670,993

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1 TO MARCH 31, 2011

		Jan. 1 to	Jan. 1 to
	EURk	March 31, 2011	March 31, 2010
	Earnings before taxes	11,192	8,053
	Non-cash items contained in net profit for the period and
	reconciliation to cash flow from operating activities
+/–	Amortisation/depreciation	646	664
–/+	Profit/loss from the disposals of equipment and intangible assets	–3	–2
–/+	Investment income	130	131
–/+	Non-cash changes in equity	–293	1,773
+/–	Increase/decrease deferred liabilities, provisions and pensions	89	4,442
–	Additions of lease receivables	–182,754	–147,798
+	Payments by lessees	137,400	119,924
+	Disposals/reclassifications of lease receivables at residual carrying values	29,729	26,296
–	Interest and other income from financing business	–34,197	–29,287
–	Increase in other receivables from lessees	–2,574	–2,511
+/–	Currency translation differences	3,018	–3,196
=	Change in lease receivables	–49,378	–36,572
+	Additions of liabilities from refinancing	314,550	412,816
–	Payment of annuities to refinancers	–63,522	–68,454
–	Disposal of liabilities from refinancing	–229,068	–394,708
+	Expenses from interest on refinancing and on deposit business	12,037	10,655
+/–	Currency translation differences	–1,496	1,617
=	Change in refinancing liabilities	32,501	–38,074
+/–	Increase/decrease in liabilities from deposit business	11,672	25,894
–/+	Increase/decrease in loans to franchisees	4,333	5,930
	Changes in other assets/liabilities
–/+	Increase/decrease in other assets	–15,310	19,338
+/–	Increase/decrease in deferred lease payments	8,462	–13,979
+/–	Increase/decrease in other liabilities	4,468	–2,007
=	Cash flow from operating activities	8,509	–24,409

continued on next page

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1 TO MARCH 31, 2011: CONTINUED

		Jan. 1 to	Jan. 1 to
	EURk	March 31, 2011	March 31, 2010
–/+	Taxes paid / received	–17,441	–3,976
–	Interest paid	–208	–296
+	Interest received	78	165
=	Net cash flow from operating activities	–9,062	–28,516
–	Purchase of equipment and intangible assets	–1,226	–202
–/+	Payments / proceeds from acquisition of subsidiaries	0	0
+	Proceeds from sale of equipment and intangible assets	28	3
=	Cash flow from investing activities	–1,198	–199
+/–	Raising / repayment of bank liabilities	–342	7,164
–	Dividend payment	0	0
=	Cash flow from financing activities	–342	7,164
	Cash funds at the beginning of the period
	Cash on hand and balances with banks	78,297	109,865
–	Bank liabilities from overdrafts	–113	–1,131
=	Cash and cash equivalents at the beginning of the period	78,184	108,734
+/–	Change due to currency translation	88	–236
=	Cash funds after currency translation	78,272	108,498
	Cash funds at the end of the period
	Cash on hand and balances with banks	67,992	88,965
–	Bank liabilities from overdrafts	–322	–2,019
=	Cash and cash equivalents at the end of the period	67,670	86,946
	Change in cash and cash equivalents during the period (=Total cash flows)	–10,602	–21,552
	Net cash flow from operating activities	–9,062	–28,516
+	Cash flow from investing activities	–1,198	–199
+	Cash flow from financing activities	–342	7,164
=	Total cash flow	–10,602	–21,551

STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY

					Reserve for
	Capital	Capital	Retained	Hedging	actuarial profits	Currency	Total
EURk	stock	reserve	earnings	reserve	and losses	translation	equity
Equity as per
Jan. 1, 2011	17,491	60,166	208,941	–1,005	–172	2,352	287,773
Total comprehensive
income			8,386	455	26	–687	8,180
Dividend in 2011
for 2010			0				0
Equity as per
March 31, 2011	17,491	60,166	217,327	–550	–146	1,665	295,953
Equity as per
Jan. 1, 2010	17,491	60,166	189,315	–2,941	–112	–1,035	262,884
Total comprehensive
income			5,776	329	43	1,267	7,415
Dividend in 2010
for 2009			0				0
Equity as per
March 31, 2010	17,491	60,166	195,091	–2,612	–69	232	270,299

SEGMENT INFORMATION FOR THE PERIOD JANUARY 1 TO MARCH 31, 2011

The Group structures its activities in the segments of Leasing Business, Banking Business and Factoring Business. The Leasing Business segment accounts for all activities performed by GRENKELEASING AG and its subsidiaries until the acquisition of GRENKE BANK AG and GRENKEFACTORING GmbH. In managing the Leasing Business, the Group essentially focuses on the individual regions and countries. Thus, the Leasing Business segment is a combination of several operative segments defined by countries or groups of countries which together define the reportable Leasing Business segment. The Banking Business segment comprises the activities of GRENKE BANK AG, which has mainly focused on its internet presence and the associated sales activities since its acquisition by GRENKELEASING AG. The bank's business focuses mainly on German customers. The Factoring segment includes the activities of GRENKEFACTORING GmbH, which performs traditional factoring services in Germany and is a financial services provider.

							Banking	Factoring
							Business	Business	Total	Consoli
				Leasing Business segment			segment	segment	segments	dation	Group
			Switzer
As per March 31, 2011	Germany	France	land	Italy	Other
(EURk)	region	region	region	region	regions	Total
Operating segment income	10,661	5,333	1,523	3,704	5,895	27,116	955	285	28,356	0	28,356
Segment result	1,452	3,287	890	2,255	2,520	10,404	818	30	11,252	0	11,252
Reconciliation to consoli
dated financial statements
Operating result											11,252
Other financial income											–60
Taxes											2,806
Net profit for the period
according to consolidated
income statement											8,386
Segment assets	633,582	363,890	45,297	131,521		490,499 1,664,789	185,923		7,665 1,858,377		–159,925 1,698,452
Reconciliation to consoli
dated financial statements
Unallocated items											20,445
Total assets according to
consolidated balance sheet											1,718,897

							Banking Business	Factoring Business	Total	Consoli
				Leasing Business segment			segment	segment	segments	dation	Group
			Switzer
As per March 31, 2010	Germany	France	land	Italy	Other
(EURk)	region	region	region	region	regions	Total
Operating segment income	9,093	4,336	1,006	2,808	3,768	21,011	517	107	21,635	0	21,635
Segment result	2,514	2,423	441	1,829	1,281	8,488	–393	–158	7,937	0	7,937
Reconciliation to consolidat
ed financial statements
Operating result											7,937
Other financial income											117
Taxes											2,278
Net profit for the period
according to consolidated
income statement											5,776
Segment assets	696,973	312,380	41,528	20,838		349,249 1,420,968	170,044		2,732 1,593,744		–117,394 1,476,350
Reconciliation to consolidat
ed financial statements
Unallocated items											16,754
Total assets
											1,493,104

SEGMENT INFORMATION FOR THE PERIOD JANUARY 1 TO MARCH 31, 2010

SELECTED EXPLANATORY NOTES

ACCOUNTING POLICY

The interim reporting of GRENKELEASING AG (hereafter referred to as "Company") as at March 31, 2011 meets the requirements of the International Financial Reporting Standards (IFRSs) published by the International Accounting Standards Board (IASB) and assumed by the EU, as did the consolidated financial statements of December 31, 2010.

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 statements of December 31, 2010.

The accounting policies used are the same as those used in the previous year, with the exception of the new standards that have become mandatory, which are presented briefly below.

MANDATORY NEW ACCOUNTING STANDARDS

The first-time application of the standards adjusted as part of the Annual Improvement Project 2010 ("AIP 2010") and of IAS 24 "Related Party Disclosures", IAS 32 "Financial Instruments: Presentation" (February 10, 2010), IFRIC 14 "IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction" and IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments" (July 1, 2010) did not result in any material changes in recognition and measurement in Group reporting.

USE OF ASSUMPTIONS AND ESTIMATES

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 installment 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.

Estimated residual values are used to determine the present value of lease receivables. Non-guaranteed residual values are used to calculate lease receivables in accordance with the definition in IAS 17. Estimated residual values comprise anticipated sales proceeds and any revenues generated in a renewal period. They are determined on the basis of past experience and statistical methods.

Based on experience, residual values of additions until end-2006 range between 11 percent and 15 percent of historical cost, depending on the term of the lease. In fiscal year 2007, this allocation was broken down further into more detailed maturity groups on account of the increase in forecastability in the statistical population.

For additions from 2007 to 2008, the residual values range between 7.7 percent and 28.4 percent of historical cost depending on the term of the lease. Residual values of between 6.5 percent and 28.4 percent were used for additions from 2009 onwards. Proceeds are a best estimate based on statistical analyses. If the post-transaction recoverable amount is lower than expected (from sale and subsequent lease), the lease receivables are written down. However, an increase in recoverable amount is not recognised.

Lease assets for sale are measured on the basis of the average sales proceeds per age group realised in the past fiscal year in relation to the original acquisition cost. 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 3.0 percent and 17.8 percent of the historical cost (previous year: between 4.6 percent and 19.5 percent). 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, 2011	March 31,2010
Changes in performing lease receivables
Balance at beginning of period	1,241,374	1,048,550
+ Change during the period	46,804	33,886
Lease receivables (current + non-current) from current contracts at end of period	1,288,178	1,082,436

EURk	March 31, 2011	March 31,2010
Changes in non-performing lease receivables
Gross receivables at beginning of period	170,346	169,389
– Accumulated valuation allowances at beginning of period	–83,496	–83,060
= Non-performing lease receivables at beginning of period	86,850	86,329
+ Additions to gross receivables during the period	9,226	9,994
– Disposals of gross receivables during the period	5,897	6,911
+ Disposal of accumulated valuation allowances during the period	6,073	3,152
– Addition of accumulated valuation allowances during the period	6,828	3,724
Non-performing lease receivables at end of period	89,424	88,840
Lease receivables (carrying amounts of current and non-current receivables) at beginning of	1,328,224	1,134,879
Lease receivables (carrying amounts of current and non-current receivables) at end of period	1,377,602	1,171,276

FINANCIAL LIABILITIES

GRENKELEASING's financial liabilities comprise liabilities from the refinancing of the leasing business, bank liabilities and liabilities from deposit business.

EURk	March 31, 2011	March 31, 2010
Financial liabilities
Current financial liabilities
Liabilities from the refinancing of the leasing business	255,850	320,582
ABS/ABCP related liabilities	88,085	70,362
Bonds, revolving facilities, debentures and private placements	139,229	219,635
Committed development loans	69	187
Sales of receivables agreements	28,467	30,398
Current liabilities from deposit business	91,013	87,624
Current portion of bank liabilities	896	684
thereof current account liabilities	322	113
Total current financial liabilities	347,759	408,890
Non-current financial liabilities
Liabilities from the refinancing of the leasing business	884,194	786,961
ABS/ABCP related liabilities	228,494	214,602
Bonds, debentures and private placements	613,800	528,689
Committed development loans	15,210	15,000
Sales of receivables agreements	26,690	28,670
Non-current liabilities from deposit business	42,898	34,615
Non-current bank liabilities	2,750	3,094
Total non-current financial liabilities	929,842	824,670
Total financial liabilities	1,277,601	1,233,560

ABS bond

On February 4, 2010, a new ABS bond amounting to EUR 160,000k was placed via the special-purpose entity GOALS FINANCING2009 LIMITED(GOALS 2009-1). The contractswithGOALS FINANCING2009 LIMITEDallowGRENKELEASINGto sell furtherleaseagreementsonarevolvingbasisforatotalof3yearsanduptoamaximumamountofEUR300,000k. Theinterest rate is variable at three-month EURIBOR plus a spread ranging between 1.25 and 3.5 percent depending on the tranche.

Three tranches of bonds with different ratings (risk classes) were issued by the SPE. The size of the best rated tranche is a reflection of the quality of the leasing portfolio and internal risk management and directly impacts the costs of this type of financing. 76.5 percent (EUR 122,400k) of the bond was given the highest rating by Standard & Poor's (AAA) and FITCH (AAA). The wholly-owned subsidiary of GRENKELEASING AG, GRENKE FINANCE Plc., Dublin, Ireland, subscribed on a pro rata basis to the second tranche and subscribed fully to the last tranche (nominal value EUR24,200k) of the ABS bond. As a result, funds of only EUR 135,800k flowed to the Group. The carrying amount of the total liability was EUR 136,499k on the balance sheet date.

ABCP programmes

The GRENKELEASING Group has several asset-backed commercial paper programmes (ABCPs) with a total volume of EUR 400,000k as of the reporting date (previous year: EUR 452,200k). The overview of the programmes as of the reporting date is as follows:

			Programme volume in
ABCP Programme/SPE	Initiating bank	Refinanceable lease receivables	EURk
Compass Variety Funding Limited	WestLB	German and Austrian lease receivables	40,000
Kebnekaise Funding Limited	SEB AB	German and French lease receivables	110,000
CORAL PURCHASING Limited	DZ-Bank	German lease receivables	150,000
Arabella Finance Limited	UniCredit	French lease receivables	100,000
Total			400,000

The ABCP programmes grant the company the right to sell receivables to the respective programmes for a certain period or to refinance through these. The cap on the purchase volume is determined by the volume of the programme, which is normally backed by a liquidity commitment in the corresponding amount by the organising bank. The ABCP programme Compass Variety Funding Limited with WestLB was fixed at EUR 40,000k and extended until January 22, 2012, after the bulk of the portfolio originally refinanced there has now been refinanced via the new ABS bond GOALS FINANCING 2009 LIMITED (GOALS 2009-1). The programme commitment for the Kebnekaise Funding Limited ABCP programme was extended and runs until November 30, 2011.

The programme commitment for the CORAL Purchasing Limited ABCP programme runs until September 9, 2011 and until July 30, 2011 for the Arabella Finance Limited ABCP programme.

A further FCT (Fonds Commun de Titrisation à Compartments II/French issuer) used by GRENKELEASING for French securitisation in line with the current general conditions for securitisation was founded to purchase French lease receivables via the SPE initiated by UniCredit, Arabella Finance Limited ("Arabella"), from November 24, 2010. The sole purpose of this FCT is to securitise French lease receivables under the ABCP programme through Arabella Finance Limited. The first sale of French lease receivables to Arabella took place on January 18, 2011.

As at the reporting date, 44.77 percent of the refinancing framework of the ABCP programmes was utilised. The corresponding amount of receivables is thus assigned by way of collateral.

Sales of receivables agreements

Sales of receivables agreements are currently in place with Sparkasse Baden-Baden Gaggenau, Sparkasse Karlsruhe, Commerzbank AG, UBS AG in Switzerland and with the Commerzbank subsidiary BRE-Bank SA in Poland. The agreements with Commerzbank AG and BRE-Bank SA in Poland were terminated in 2009. Repayments are being made in line with the portfolios contracted and new acquisitions are currently not possible.

On March 31, 2010, a framework agreement was signed between Norddeutsche Landesbank and Grenke Leasing Limited, UK, relating to the sale of receivables from UK lease agreements with a total volume of GBP 18 million. The first utilisation of this took place in April 2010.

Bonds, debentures and private placements

A new promissory note loan with a volume of EUR 10,000k was issued on February 11, 2011.

A new bond with a volume of EUR 75,000k was issued on March 9, 2011.

Promissory note loans worth EUR 38,000k that had matured were repaid in full on March 10, 2011.

Development loans

On February 18, 2010, GRENKELEASING AG and GRENKE BANK AG entered into a cooperation agreement with NRW.Bank, the development bank of the state of North Rhine-Westphalia. This opens up a new opportunity for incorporating development funding into lease financing.

The refinancing of lease agreements, which are available exclusively for investment plans in North Rhine-Westphalia of commercial enterprises and members of self-employed professions with annual sales of up to EUR 500,000k, takes place through the purchase of receivables by GRENKE BANK AG.

GRENKE BANK AG was granted a global loan of EUR 15,000k by NRW.Bank for precisely this purpose. The loan was drawn on for the first time in the amount of EUR 7,500k on March 22, 2010; the interest rate related to the 6-month EURIBOR plus a margin of 0.21 percent and a term of three years. The second draw-down of a further EUR 7,500k on November 25, 2010 also had a reference interest rate of 6-month EURIBOR and a bullet maturity of three years, with a margin of only 0.19 percent in this case.

Revolving credit facility and money market line

In the context of revolving credit facilities with a total volume of EUR 120,000k and a money market line totalling EUR 20,000k available to GRENKE FINANCE Plc., Dublin/Ireland, the Group has the option of taking on short-term funds with a minimum amount of EUR 5,000k and a term of at least one month at any time. The revolving credit facilities of EUR 120,000k in total are arranged with four banks with a volume of EUR 30,000k each. As in previous years, all four of the existing credit facilities with a total volume of EUR 120,000k have again been extended by one year. The facility with SEB was prolonged until July 2011, while the facility with WestLB was extended to August 2011, the facility with Deutsche Bank until September 2011 and the facility with DZ-Bank was extended to October 2011.

As of March 31, 2011, these credit lines had been utilised to the amount of a total volume of EUR 60,000k (previous year: EUR 65,000k). Utilisation is disclosed under current liabilities from refinancing of the leasing business.

A non-guaranteed money market line of EUR 20,000k available to GRENKE FINANCE Plc., Dublin/Ireland, was agreed with Bayerische Landesbank in April 2010.

DIVIDEND PAYMENT

The Annual General Meeting on May 10, 2011 is to adopt the resolution on the appropriation of GRENKELEASING AG's profits for fiscal year 2010 of EUR 41,832,253.42. The Board of Directors and the Supervisory Board will propose a dividend of EUR 0.70 per share. The Board of Directors will also propose to the Annual General Meeting that EUR 29,000,000.00 be appropriated to other revenue reserves. After the dividend of EUR 9,578,869.30 is deducted, the remaining amount of EUR 3,253,384.12 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 balance sheet profit for 2009 as follows:

Balance sheet profit for 2009	EUR 23,263,815.44
Distribution of a dividend of EUR 0.60 per share for a total of 13,684,099 shares	EUR 8,210,459.40
Appropriation to revenue reserves	EUR 0.00
Profit carryforward (to new account)	EUR 15,053,356.04

The dividend was paid to the shareholders of GRENKELEASING AG on May 12, 2010.

RELATED PARTY DISCLOSURES

Mr. Gilles Christ bought a total of 1,600 shares in GRENKELEASING AG via the stock exchange (Xetra) in February 2011.

By way of signature dated June 29, 2010 and July 13, 2010, the Supervisory Board of GRENKELEASING AG concluded phantom stock agreements with Board of Directors members Dr. Hack and Mr. Gilles Christ.

Under these agreements, Dr. Hack and Mr. Christ receive entitlements to payment equal to the increase in value of 30,000 and 15,000 shares respectively in GRENKELEASING AG in relation to a defined basic share price for the fiscal years 2010, 2011 and 2012. The share price is the arithmetic mean of the Xetra closing prices on all trading days from December 1 to December 23 of the respective prior year. The basic share price for 2010 was EUR 28.68 and for 2011 it is EUR 37.72. The maximum payment arising from this agreement is limited to EUR 600,000 or EUR 300,000 for the period of three years. Under the program, Dr. Hack and Mr. Christ are required to invest the respective net amount paid plus a personal contribution of 25 percent of that amount in GRENKELEASING AG shares. A pro rata calculation was applied to Mr. Christ's first year of membership on the Board of Directors.

The value of the phantom stocks agreements granted for 2011 totalled EUR 316k as at March 31, 2011. Since the payment amount is not due until the end of 2011, a proportionate amount of EUR79k relating to the first three months of the year has been expensed.

For 2010, a total of EUR 374k was paid out on the basis of the phantom stock agreements for Dr. Hack and Mr. Gilles Christ.

EMPLOYEES

In the reporting period, the GRENKELEASING AG Group employed an average of 556 employees (previous year: 526), excluding the Board of Directors.

EVENTS AFTER THE BALANCE SHEET DATE

On April 1, 2011 the revolving facility with a volume of EUR 30,000k with SEB was extended until the end of March 2012.

A bond of EUR 10,000k drawn down as part of the debt issuance programme was repaid in full on April 20, 2011. At the same time, a new bond was issued as part of the debt issuance programme in the amount of EUR 10,000k with a term from April 20, 2011 to July 21, 2014.

A promissory note loan of EUR 40,000k maturing on April 30, 2011 was replaced by a new promissory note loan with the same volume maturing April 30, 2014. The repayments are due in equal instalments on October 30 and April 30 each year.

CALENDAR OF EVENTS 2011

May 5, 2011	Publication Quarterly Financial Report as per March 31, 2011
May 10, 2011	Annual General Meeting (Kongress-Haus Baden-Baden)
August 1, 2011	Publication Quarterly Financial Report as per June 30, 2011
November 3, 2011	Publication Quarterly Financial Report as per September 30, 2011

CONTACT

Renate Hauss Corporate Communications

Phone: +49 7221 5007-204 Fax: +49 7221 5007-112

E-mail: investor@grenke.de

Figures in this quarterly financial report are usually presented in thousands and millions of euro. Due to rounding, differences as against the actual number in euro may emerge in individual figures. Naturally, such differences are not of a significant nature.

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 76532 Baden-Baden Germany

Phone: +49 7221 5007-204 Fax: +49 7221 5007-112

www.grenke.de www.grenkebank.de www.grenkefactoring.de

E-Mail: investor@grenke.de