Grenke AG — Interim / Quarterly Report 2012

Apr 26, 2012

GRENKELEASING AG Group

Quarterly Financial Report as per March 31, 2012

Contents

Key Figures	2
Letter to Shareholders from the Board of Directors	4
The GRENKELEASING AG Share	5
Interim Management Report	6
The Group's Growth Strategy	6
The Economic Environment	8
Report on the Results of Operations	8
Report on Segment Development	9
Report on the Financial Position and Net Assets	10
Report on the Forecasts and Outlook for the Group	11
Interim Consolidated Financial Statements	13
Notes to the Interim Consolidated Financial Statements	21
Calendar of Events for 2012 and Contact Details	30

Key Figures GRENKE Group

	Jan. 1, 2012 to	Change	Jan. 1, 2011 to
	March 31, 2012	(%)	March 31, 2011	Unit
New business
GRENKE Group including franchise partners and factoring	238,928	24.5	191,930	EURk
– of which Germany	83,115	10.9	74,930	EURk
– of which international	129,073	25.8	102,599	EURk
– of which franchise international	26,740	85.7	14,401	EURk
Leasing business	214,412	20.0	178,730	EURk
– of which Germany	65,363	3.2	63,364	EURk
– of which international	129,073	25.8	102,599	EURk
– of which franchise international	19,976	56.5	12,767	EURk
Factoring	24,516	85.7	13,200	EURk
– of which Germany	17,752	53.5	11,566	EURk
– of which franchise international (CH)	6,764	314.0	1,634	EURk
Contribution margin 2 (CM2) of new business
GRENKE Group including franchise partners and factoring	38,311	47.3	26,004	EURk
– of which Germany	9,430	9.5	8,608	EURk
– of which international	24,724	64.3	15,050	EURk
– of which franchise international	4,157	77.2	2,346	EURk
Leasing business	38,007	48.2	25,639	EURk
– of which Germany	9,262	11.8	8,284	EURk
– of which international	24,724	64.3	15,050	EURk
– of which franchise international	4,021	74.4	2,305	EURk
Further information leasing business
Number of new contracts	25,926	14.2	22,693	units
Share of IT products in the lease portfolio	88	0.0	88	percent
Share of corporate customers in the lease portfolio	100	0.0	100	percent
Mean acquisition value	8.3	5.1	7.9	EURk
Mean term of contract	47	2.2	46	months
Volume of leased assets	2,299	15.8	1,985	EURm
Number of current contracts	292,411	12.9	258,992	units
GRENKE Bank
Deposits	157,831	17.9	133,910	EURk
Business start-up financing volume	1,035	1,337.5	72	EURk

GRENKE Group = GRENKE Consolidated Group including franchise partners

GRENKE Consolidated Group = GRENKELEASING AG and all consolidated subsidiaries and special-purpose entities according to IFRS

Key Figures GRENKE Consolidated Group

	Jan. 1, 2012 to		Jan. 1, 2011 to
	March 31, 2012	Change (%)	March 31, 2011	Unit
Key figures for the income statement
Net interest income	25,240	13.9	22,160	EURk
Settlement of claims and risk provisioning	10,600	30.1	8,145	EURk
Profit from insurance business	6,628	16.1	5,709	EURk
Profit from new business	8,404	13.7	7,391	EURk
Profit from disposals (income exceeding the calculated residual value)	1,385	11.7	1,240	EURk
Other operating income	848	–4.2	885	EURk
Costs of new contracts	5,682	14.4	4,965	EURk
Costs of current contracts	1,752	12.2	1,561	EURk
Project costs and basic distribution costs	5,542	11.3	4,980	EURk
Management costs	4,293	0.1	4,288	EURk
Other costs	1,546	–29.5	2,194	EURk
Operating result	13,090	16.3	11,252	EURk
Other interest income (expenses)	313	140.8	130	EURk
Income/expenses from fair value measurement	–20	–128.6	70	EURk
EBT (earnings before taxes)	12,757	14.0	11,192	EURk
Net profit	9,388	11.9	8,386	EURk
Earnings per share (according to IFRS)	0.69	13.1	0.61	EUR
Further information
Dividend	0.75	7.1	0.70	EUR
Embedded value, leasing contract portfolio (incl. equity before taxes)	491	16.9	420	EURm
Embedded value, leasing contract portfolio (incl. equity after taxes)	447	16.1	385	EURm
Cost / income ratio	59.6	–3.6	61.8	percent
Return on equity (ROE) after taxes	11.4	0.9	11.3	percent
Average number of employees	630	13.3	556	employees
Staff costs	10,027	16.1	8,638	EURk
– of which total remuneration	8,276	15.2	7,181	EURk
– of which fixed remuneration	6,259	12.9	5,545	EURk
– of which variable remuneration	2,017	23.3	1,636	EURk

GRENKE Group = GRENKE Consolidated Group including franchise partners

GRENKE Consolidated Group = GRENKELEASING AG and all consolidated subsidiaries and special-purpose entities according to IFRS

Letter to Shareholders from the Board of Directors

Dear Shareholders,

Ladies and Gentlemen,

The opening quarter of the current fiscal year was more than in line with our expectations. Currently, we are benefiting particularly from our international presence which we have built over recent years. Meanwhile, we are well positioned and firmly established at a European level. For this reason, in 2012, we expect to achieve growth that will exceed our long-term growth target of at least 10 percent per annum in new business for the GRENKE Group. We aim at increasing our volume of new business by about 15 percent. In the first quarter, our growth of 25 percent clearly exceeded this target. By comparison, our growth in the last five years was 13 percent on average.

With an international sales force and the ability to soundly steer volume, risk, and the contribution margin 2, the GRENKE Group is well equipped to continue to realise attractive and risk-adequate margins going forward. We focus exclusively on the opportunities in our markets which we can consistently take advantage of, regardless of the general economic environment. This is possible due to our extensive financial resources and our strong reputation which allows us access to various financing alternatives at any time. GRENKE Consolidated Group's solid financial position is an essential cornerstone of our success, and one which we want to preserve in its entirety. The equity ratio, based on our financing volume, has once again noticeably surpassed our target of 16 percent.

Over the remainder of the year, we will advance along our successful path and will continue to focus on those regional target markets which offer opportunities to grow and an appropriate risk-reward ratio. Once again, the first quarter had confirmed the success of this strategy. We are tapping new markets with the same systematic approach. Our entries on the Turkish and Brazilian markets have been very promising and initial leases have already been concluded, and the trend is strongly accelerating. As a result, the GRENKE Consolidated Group is fully on track with regard to the profit development for fiscal year 2012. We are maintaining our forecast of a further considerable improvement in net profit in the current fiscal year in a range of EUR 41 - 44 million.

Baden-Baden, April 2012

Wolfgang Grenke Chairman of the Board of Directors

The GRENKELEASING AG Share

In the first three months of fiscal year 2012, the shares of GRENKELEASING AG had, on balance, slightly exceeded the performance of their benchmark indices and were thus able to participate in the strong performance of the German stock market. Beginning with a year-opening price of EUR 38.59 on XETRA, the share had risen by 17.4 percent and ended the quarter on March 31 with a price of EUR 45.29. The SDAX price index over the same period had increased by 16.5 percent and the sector index of the German financial stocks in the Prime Standard (DAXsector Financial Services) had increased 15.5 percent.

The stock market had reacted particularly positively towards the publication of the annual results. In the time subsequent to our release dated February 8, GRENKELEASING AG's share price rose almost 20 percent until the beginning of March with high daily turnover. On March 1, the share marked a year-high at EUR 47.81. Thereafter, the share remained at that high level and followed the general market trend by tending sideways until the end of the quarter.

Interim Management Report

The Group's Growth Strategy

GRENKELEASING stands for consistent successful growth. The GRENKELEASING AG Consolidated Group (hereinafter: GRENKE Consolidated Group) was not only able to further expand its market leadership in its core business during the global financial market crisis and the following recession, but at an early stage it was also able to consistently take advantage of the subsequent economic recovery and generate significant growth. In the reporting quarter, we were able to continue this dynamic development. The new business volume of the GRENKE Group – i.e. the sum of the cost of newly acquired leased assets and factoring volumes – increased 25 percent to EUR 238.9 million. Here as in the past two fiscal years, the majority of our growth had been generated with our international business. Also in the reporting quarter, initial leases had been already concluded in the new target markets of Turkey and Brazil.

The GRENKE Group's growth strategy constitutes a key element of its corporate philosophy which is geared towards generating sustainable value added. The second component is a highly effective risk management system that has been continuously developed over many years and fulfils the Minimum Requirements for Risk Management (MaRisk). Together with our consistently standardised and IT-based transaction processing, it enables us to manage and to take advantage of the risks and opportunities associated with our business with a high degree of flexibility and cost efficiency both on the refinancing and on the customer side.

The growth generated by entering new regional markets and expanding our existing market presence is also stimulated through a continuous broadening of both our product range and our range of financing solutions. In order to diversify our risk, we concentrate on smaller contract volumes that cannot be offered by many competitors for cost reasons. Recent additions to the product range include the purchase of lower-volume receivables (factoring) and car leasing, as well as various financing alternatives from GRENKE BANK AG. Together with L-Bank in Baden-Württemberg and the KfW Mittelstandsbank, start-up financing is provided. In cooperation with NRW.Bank – the development bank of the state of North Rhine-Westphalia – and, since January 2012 with the Thüringer Aufbaubank, the development bank of the state of Thuringia, state-supported funds is provided as well. GRENKE BANK AG now also offers several additional products, such as payment transaction accounts in euro or foreign currencies and simple investment products such as fixedterm deposits and savings bonds for commercial customers. Call money and fixed-term products are also addressed at private customers.

With its indirect sales channels specialising in online solutions and its fully automated contract processing, the GRENKE Group offers commercial and private customers competitive conditions while still generating attractive margins. For reasons of risk limitation, we also aimto ensure a broadly diversified portfolio in terms of customers and industries.

We do not compromise on our strategic targets for balance sheet strength and profitability. To ensure that the successful implementation of our value enhancement philosophy is also reflected in the GRENKE Group's valuation on the capital market, we aim for a high intrinsic value of the GRENKE share measured in terms of the parameters return on equity and embedded value, and for a stable, investment-grade issuer credit rating.

* Austria, Belgium, Brazil, Czech Republic, Denmark, Finland, Hungary, Ireland, Luxembourg, Norway, Romania, Slovak Republic, Slovenia, Sweden, Turkey

The Economic Environment

Europe's economic development in the first quarter of 2012 was marked by persistent weak growth. Whereas the German and French economies were in comparatively good condition, the Southern European countries in particular had been impacted by pronounced recessionary trends. Germany continues to benefit from a robust domestic economy which is being stimulated primarily by the sustained positive developments on the labourmarket. In France, domestic economic influences have improved slightly as well.

However, in general, the GRENKE Group's business is dependent on the overall economic development in its target markets to only a limited extent. This applies specifically to our actively managed new business. Considerably more important are key industry trends, such as the business policy of banks in the leasing sector, and the rising regulatory requirements in this area. Deviations from these trends did not arise in any of our regional markets in the reporting quarter.

The influence of market and central bank interest rates on our refinancing costs is also limited. The GRENKE Group has a wide range of refinancing instruments that can be flexibly employed depending on the market situation and expected interest rate developments. Our good credit rating, which was confirmed again in December 2011, also means that we always have access to funding, whether via programmes with banks, our direct access to the capital markets, or GRENKE BANK AG's actively managed deposit business.

Report on the Results of Operations

For the first quarter of 2012, the GRENKE Group recorded a 25 percent increase in new business to EUR 238.9 million as against EUR 191.9 million in the same period of the previous year. This also underlines at the same time our earlier announcement that our consistent focus on growth would be quickly reflected through increasing earnings. In fact, we can again report increasing contributions from almost all earnings components.

Net interest income increased by 14 percent to EUR 25.2 million in the reporting quarter as compared to EUR 22.2 million in the same quarter of 2011. The quality of this increase is evident in particular in comparison with the high basis of the same quarter in the previous year. The income of the previous year's quarter had benefited from the significantly higher contribution margin 2 for new business within the crisis year of 2009. In contrast, the growth in net interest income generated in the reporting quarter was mainly attributable to the volume effects from new business starting in 2010.

The higher negative impact from the settlement of claims and risk provisioning was due to two factors. Firstly, the higher portion of international business with a higher default rate, which had been calculated and expected, and secondly, the substantial growth experienced in fiscal year 2010. The claims development generally has a time lag of two years on average. The corresponding expense amounted to EUR 10.6 million in the reporting quarter as compared to EUR 8.1 million in the same quarter of the previous year. The loss rate of 1.9 percent after 1.7 percent had remained within the scope of normal volatility during a year. However, the increase also reflects the generally higher level of insolvencies, especially in Europe. The EULER HERMES insolvency index for the eurozone recorded an increase to 12 percent for 2012 following a reading of 6 percent for the previous year. After the settlement of claims and risk provision, net interest income in the reporting quarter rose by 5 percent to EUR 14.6 million after EUR 14.0 million in the same quarter of 2011.

The profit from the insurance business rose 16 percent to EUR 6.6 million in the first quarter of 2012 (previous year: EUR 5.7 million). Usually, the profit from the insurance business tends to increase over the course of the year. The profit from new business rose 14 percent from EUR 7.4 million to EUR 8.4 million. The profit from disposals was EUR 1.4 million in the reporting quarter, a 12 percent increase over the EUR 1.2 million reported in the previous year. As a result, the income from operating business increased 10 percent to EUR 31.1 million after EUR 28.4 million in the same quarter of the previous year.

Key operating expense items and staff costs in particular, continued to reflect the strong growth of the GRENKE Consolidated Group. In contrast, selling and administrative expenses posted a slight decrease in the reporting quarter. This was due to a one-off effect in the previous year's quarter which had not reoccurred. This effect compensated for the increase in consulting and audit expenses that arose in connection with on-going audits and the expansion in Brazil and Turkey. The rise in other operating expenses was considerably below average and also included a non-cash expense from currency effects.

Overall, the operating result in the opening quarter of 2012 recorded a rise of 16 percent to EUR 13.1 million after EUR 11.3 million in the previous year. The substantial increase in other interest expense resulted from the early issuance of a bond (EUR 100 million) in January 2012. Since the capital markets were in good shape at the beginning of the year, as a precautionary measure, we used this opportunity for the bond issue, although from a liquidity standpoint this was not necessary. The tax rate was in line with the usual quarterly fluctuations rising slightly to 26 percent after 25 percent in the previous year. Therefore, net income for the period rose by 12 percent from EUR 8.4 million to EUR 9.4 million. This resulted in earning per share of EUR 0.69 as compared to EUR 0.61.

Report on Segment Development

Business Segments

Due to the increased internationalisation, the primary reporting of GRENKE Consolidated Group segments is according to the dominant organisational structure which is based on its operating activities. Therefore, the operating segments are divided into Leasing, Banking, and Factoring in accordance with the management of the company's segments. The previous year's regional split within the Leasing segment is combined for the quarterly reporting as of January 1, 2012. The previous year's figures were adjusted accordingly. Going forward, a regional split of the business activities will be provided on a yearly basis as part of the annual report for each financial year. Detailed financial information is available for the operating segments.

Reportable Segments

Leasing

The Leasing segment comprises all of the activities that are related to the Consolidated Group's leasing business. The service offer encompasses the provision of financing to commercial lessees, rental, insurance, service, and maintenance offerings, as well as the utilisation of used equipment.

Banking

The Banking segment comprises the activities of GRENKE BANK AG, which regards itself as a financing partner particularly to smalland medium-sized companies. Additionally, GRENKE BANK AG cooperates with development banks in providing financing to this clientele in the context of business start-ups. Furthermore, fixed-term deposits are offered to investors via its internet presence. The bank's business is focused primarily on German customers.

Factoring

The Factoring segment contains the activities of GRENKEFACTORING GmbH, which performs traditional factoring services and which is focused on small-ticket factoring in Germany.

Business Development

The Leasing segment remains GRENKE Consolidated Group's most important pillar of earnings. Therefore, the disclosures in the previous chapter on the result of operations of the GRENKE Consolidated Group (Report on the Results of Operations) can also be essentially applied to the Leasing segment. Here, in the first quarter of 2012, the operating segment income grew by 9 percent from EUR 27.1 million in the prior year to EUR 29.6 million. The segment result improved by 15 percent from EUR 10.4 million to EUR 12.0 million. The Banking segment and the Factoring segment represent relatively young activities which are still in the development phase and therefore significantly smaller. However, they enjoy very favourable growth rates. In the Banking segment, the operating segment income rose 18 percent from nearly EUR 1.0 million in the prior year to slightly more than EUR 1.1 million and the segment result even improved by 34 percent from EUR 0.8 million in the previous year to EUR 1.1 million. In the Factoring segment, the operating segment income rose 20 percent as compared with the previous year to EUR 0.3 million and the segment result amounted to EUR 0.04 million following EUR 0.03 million in the prior year.

The new business in the Leasing segment demonstrates the on-going strong development of the GRENKE Group. In the first three months of 2012, new business rose 20 percent from EUR 178.7 million in the previous year to EUR 214.4 million. At 17.7 percent, the CM2 margin was considerably above the previous year's level of 14.3 percent. As a result, the trend of continuous margin improvement in the course of financial year 2011 also persisted in the first quarter of 2012.

New business in the German market grew by 3 percent due to our already very high market penetration in that market. All other international markets reported high double-digit growth rates. In France, our largest international market, our new business increased 23 percent. Switzerland recorded a rise of 30 percent for the first three months and thus continued the strong upswing of the prior year. Following the strong growth in previous quarters, we were able to further expand the new business in Italy by 20 percent. In Poland, new business improved by 24 percent. In the United Kingdom, we had exceptionally strong growth of 65 percent. Spain, Portugal, and the Netherlands showed similar growth rates of 44 percent, 42 percent, and 47 percent, respectively.

Our targeted approach of offering financing solutions to small and medium sized companies through our factoring products contributes to our high growth. In the reporting quarter, the new business volume in the GRENKE Group rose 86 percent from EUR 13.2 million to EUR 24.5 million. In Germany, new business soared by 54 percent. Our international factoring business, which we have operated since 2010 through a franchisee in Switzerland, has continued to grow rapidly. As compared to the previous year's quarter, this business has seen a fourfold increase.

Report on the Financial Position and Net Assets

As a result of the expansion in new business in the first quarter of 2012, lease receivables increased by 5 percent to EUR 1,646.0 million after EUR 1,568.8 million at the end of fiscal year 2011. Total assets rose by 2 percent to EUR 2,008.8 million after EUR 1,969.0 million in the previous year and equity increased by EUR 10.3 million in absolute terms, or 3 percent, to EUR 328.0 million, mainly on the back of the income development. The equity ratio based on our financing volume, which is comprised of the sum of short and long term lease receivables and total financial assets, was 18.7 percent as per March 31, 2012 and thus almost at the same level as per the balance sheet date in 2011 (18.8 percent), and once again clearly above our target level of 16 percent.

In the reporting quarter, in order to finance the lease receivables, we drew on both our broad range of refinancing sources and on the high liquidity at the end of fiscal year 2011. Accordingly, cash and cash equivalents were reduced to EUR 73.2 million by the end of the reporting quarter after EUR 104.2 million at the 2011 balance sheet date.

We have also set the course for financing further growth. The ABCP programme with WestLB has been extended by another two years. The commitment for a further ABCP programme was also extended and is now in place until November 30, 2012. The French securitisation vehicle FCT, which was established in 2009, has been expanded by the creation of a second so-called compartment. This compartment also serves the sole purpose of securitising French lease receivables. As at the reporting date March 31, 2012, close to 44 percent of the refinancing framework of the ABCP programmes totalling EUR 400 million were utilised. We had also concluded agreements for sales of receivables with several German and European banks. New additions were a contract with DZ Bank Polska and a renewed agreement with BRE-Bank SA in Poland in February 2012.

On January 24, 2012, a new fixed-rate bond was issued with a volume of EUR 100 million, a term of 3.5 years, and an interest coupon of 4.25 percent. Overall, liabilities from refinancing rose by EUR 16.4 million to EUR 1,384.0 million in the reporting quarter after EUR 1,367.6 million at the end of fiscal year 2011.

Additional funds of EUR 2.7 million were raised through GRENKE BANK AG's deposit business. With regard to further refinancing requirements in the current fiscal year, the next large volume of EUR 100 million is scheduled for refinancing in August 2012. Otherwise, only instruments with a relatively minor volume are due for repayment and refinancing in 2012 and 2013.

Cash flow from operating activities amounted to EUR –25.3 million in the reporting quarter. An increase of EUR 77.2 million in lease receivables was offset by net cash inflows of EUR 51.9 million. After interest paid and received and taxes paid of in total EUR 4.0 million, net cash flow from operating activities amounted to EUR –29.3 million.

In the reporting quarter, cash flow from investing activities amounted to EUR –1.3 million. The repayment of bank liabilities in the amount of EUR 0.3 million had led to a corresponding cash outflow from financing activities. Overall, total cash flows in the first quarter of 2012 amounted to EUR –30.9 million.

Report on the Forecasts and Outlook for the Group

Report on Risks and Opportunities

The following risks and opportunities report relates to both the GRENKE Consolidated Group as well as the segments. The risks described in the 2011 annual financial report are still relevant. No new risks have arisen. Essentially, we still see the opportunities for our business development outweighing the usual risks associated with our business model.

In particular, demand for lease finance – measured in terms of the number of applications received and the average acquisition cost per lease concluded – remains high. This allows us to continue to increase new business while also generating attractive margins with proven risk limitation. Additional locations, branches, and franchise partners will also contribute to continued high growth in the future.

The willingness of the market to supply a sufficient amount of refinancing funding is not a major growth risk for us since the capital markets provide sufficient funds to issuers with a good standing even in difficult market situations. This is how we were able, once again, to successfully cover our refinancing requirements in the reporting quarter. Furthermore, access to banking deposits at GREN-KE BANK AG offers us an additional and very attractive source of refinancing that we have recently also used in a flexible way.

Risks to the development of income arise in particular from the increase in losses due to the recession. Traditionally, the development of losses shows a certain degree of fluctuation during the year and usually displays a time lag of roughly two years as compared to the underlying transactions, i.e. our new business.

The risk of rising interest rates remains relevant to our earnings performance. In our observation, the market's inflation expectations have risen. However, we do not expect this to result in any increase in risk for our refinancing requirements. The refinancing measures still scheduled for the remainder of the year, primarily the repayment of a EUR 100 million bond in August, should take place seamlessly, similarly to the recent bond issue in January.

The interest rate risk to which the GRENKE Consolidated Group is exposed in connection with the refinancing of its lease receivables is limited since this refinancing – if it is subject to a floating rate at all – is hedged using derivatives. However, risks from changes in interest rates and spreads may arise in relation to new business. Therefore, the time lag with which we pass on interest rate changes to customers can have a temporary impact on the profitability of the new business.

Expected Business Development

In the first quarter of fiscal year 2012, we increased new business in the GRENKE Group, including franchise partners, by 25 percent to EUR 238.9 million. Thus, we had continued our growth trend from the fourth quarter of 2011. We have also significantly exceeded our long-term target of growth in new business of at least 10 percent per year and are fully on track to achieve our expectations of a 15 percent expansion in fiscal year 2012. In addition, the business development in the first quarter confirms that our broadbased international positioning will particularly contribute to growth. The CM2 of new business in the GRENKE Group amounted to EUR 38.3 million and achieved the expected level of profitability measured in terms of the CM2 margin of the Leasing Business segment of 17.7 percent. This high margin can be attributed to the favourable competitive environment as well as the slight decline seen in interest rates in the first quarter of 2012.

Over the remainder of the year, we will systematically continue on our successful path and will take advantage of the various prospects in the different European countries in a targeted manner. In doing so, we will focus primarily on regional target markets having lower than average competitive intensity. The development of the individual regions in the reporting quarter confirms the success of this strategy. The tapping of new markets, such as seen currently in Turkey and Brazil, is already proving to be very promising after only a short time. The high growth of the previous years is also likely to stimulate net interest income in 2012, especially since new business during this period was generated with high margins, which will increasingly contribute to consolidated earnings as the terms of these leases progress. The loss rate is expected to remain in line with the usual business related fluctuations at the previous year's level. We maintain our forecast stated in the 2011 annual report that the GRENKE Consolidated Group's profit will improve considerably in the current fiscal year and reach a level of between EUR 41 million and EUR 44 million.

Interim Financial Statements for the first Quarter 2012

Consolidated Income Statement

	Jan. 01, 2012 to	Jan. 01, 2011 to
EURk	March 31, .2012	March 31, .2011
Interest and similar income from financing business	39,833	34,197
Expenses from interest on refinancing and deposit business	14,593	12,037
Net interest income	25,240	22,160
Settlement of claims and risk provision	10,600	8,145
Net interest income after settlement of claims and risk provision	14,640	14,015
Profit from insurance business	6,628	5,709
Profit from new business	8,404	7,391
Profit from disposals	1,385	1,240
Income from operating business	31,057	28,355
Staff costs	10,027	8,638
Depreciation and impairment	682	646
Selling and administrative expenses (not including staff costs)	6,997	7,267
Other operating expenses	1,109	1,437
Other operating income	848	885
Operating result	13,090	11,252
Expenses / income from fair value measurement	–20	70
Other interest income	134	78
Other interest expenses	447	208
Earnings before taxes	12,757	11,192
Income taxes	3,369	2,806
Net profit	9,388	8,386
Earnings per share (basic) in EUR	0.69	0.61
Earnings per share (diluted) in EUR	0.69	0.61
Average shares outstanding (basic)	13,684,099	13,684,099
Average shares outstanding (diluted)	13,684,099	13,684,099

Consolidated Statement of Comprehensive Income

	Jan. 1, 2012 to	Jan. 1, 2011 to
EURk	March 31, 2012	March 31, 2011
Net profit	9,388	8,386
Appropriation to / reduction of hedging reserve (before taxes)	–178	477
Income taxes	24	–22
Appropriation to / reduction of hedging reserve (after taxes)	–154	455
Appropriation to / reduction of reserve for actuarial gains and losses
(before taxes)	0	34
Income taxes	0	–8
Appropriation to / reduction of reserve for actuarial gains and losses
(after taxes)	0	26
Change in currency translation differences	1,076	–687
Other comprehensive income	922	–206
Total comprehensive income	10,310	8,180

Consolidated Statement of Financial Position

EURk	March 31, 2012	Dec. 31, 2011
Assets
Current assets
Cash and cash equivalents	73,189	104,234
Financial instruments that are assets (short-term portion)	1,987	1,883
Lease receivables	599,801	568,799
Other current financial assets	82,871	89,976
Trade receivables	4,462	4,560
Lease assets for sale	7,720	8,115
Tax assets	1,319	1,298
Other current assets	93,263	83,817
Total current assets	864,612	862,682
Non-current assets
Lease receivables	1,046,195	999,955
Financial instruments that are assets (long-term portion)	1,722	2,516
Other non-current financial assets	29,528	34,576
Property, plant, and equipment	32,088	35,653
Goodwill	13,858	13,441
Other intangible assets	1,990	2,176
Deferred tax assets	18,045	17,280
Other non-current assets	713	689
Total non-current assets	1,144,139	1,106,286
Total assets	2,008,751	1,968,968

Consolidated Statement of Financial Position

EURk	March 31, 2012	Dec. 31, 2011
Liabilities and equity
Liabilities
Current liabilities
Refinancing liabilities	486,205	438,624
Liabilities from deposit business	91,780	93,897
Current bank liabilities	1,084	1,073
Liability financial instruments (short-term portion)	4,337	3,547
Trade payables	11,005	7,031
Tax liabilities	3,543	1,847
Deferred liabilities	4,855	4,309
Current provisions	2,473	2,807
Other current liabilities	5,417	4,686
Deferred lease payments	74,122	69,241
Total current liabilities	684,821	627,062
Non-current liabilities
Refinancing liabilities	897,794	929,008
Liabilities from deposit business	66,052	61,230
Non-current bank liabilities	2,063	2,406
Liability financial instruments (long-term portion)	3,457	3,481
Deferred tax liabilities	24,878	26,078
Pensions	1,334	1,590
Non-current provisions	305	328
Other non-current liabilities	80	128
Total non-current liabilities	995,963	1,024,249
Equity
Share capital	17,491	17,491
Capital reserves	60,166	60,166
Retained earnings	150,754	148,917
Other components of equity	2,309	1,386
Unappropriated surplus	97,247	89,697
Total equity	327,967	317,657
Total liabilities and equity	2,008,751	1,968,968

Consolidated Statement of Cash Flows

		Jan. 1, 2012 to	Jan. 1, 2011 to
	EURk	March 31, 2012	March 31, 2011
	Earnings before taxes	12,757	11,192
	Non-cash items contained in net profit and reconciliation to cash flow from
	operating activities
+ / –	Depreciation and impairment	682	646
– / +	Profit / loss from the disposal of property, plant, and equipment and intangible assets	–3	–3
– / +	Income / expenses from non-current financial assets	313	130
– / +	Non-cash changes in equity	525	–293
+ / –	Increase / decrease in deferred liabilities, provisions and pensions	–66	89
–	Additions to lease receivables	–219,942	–182,754
+	Payments by lessees	159,702	137,400
+	Disposals / reclassifications of lease receivables at residual carrying amounts	29,050	29,729
–	Interest and similar income from financing business	–39,833	–34,197
–	Decrease / increase in other receivables from lessees	–3,675	–2,574
+ / –	Currency translation differences	–2,546	3,018
=	Change in lease receivables	–77,244	–49,378
+	Addition to liabilities from refinancing	220,343	314,550
–	Payment of annuities to refinancers	–74,170	–63,522
–	Disposal of liabilities from refinancing	–145,088	–229,068
+	Expenses from interest on refinancing and on deposit business	14,593	12,037
+ / –	Currency translation differences	689	–1,496
=	Change in refinancing liabilities	16,367	32,501
+ / –	Increase / decrease in liabilities from deposit business	2,705	11,672
– / +	Increase / decrease in loans to franchisees	298	4,333
	Changes in other assets / liabilities
– / +	Increase / decrease in other assets	8,060	–15,310
+ / –	Increase / decrease in deferred lease payments	4,881	8,462
+ / –	Increase / decrease in other liabilities	5,423	4,468
=	Cash flow from operating activities	–25,302	8,509

continued on next page

Consolidated Statement of Cash Flows: Continued

		Jan. 1, 2012 to	Jan. 1, 2011 to
	EURk	March 31, 2012	March 31, 2011
– / +	Taxes paid / received	–3,659	–17,441
–	Interest paid	–447	–208
+	Interest received	134	78
=	Net cash flow from operating activities	–29,274	–9,062
–	Purchase of property, plant, and equipment and intangible assets	–1,331	–1,226
– / +	Payments / proceeds from acquisition of subsidiaries	0	0
+
	Proceeds from the sale of operating and office equipment and intangible assets	8	28
=	Cash flow from investing activities	–1,323	–1,198
+ / –	Borrowing / repayment of bank liabilities	–334	–342
–	Dividend payments	0	0
=	Cash flow from financing activities	–334	–342
	Cash funds at beginning of period
	Cash in hand and bank balances	104,234	78,297
–	Bank liabilities from overdrafts	–482	–113
=	Cash and cash equivalents at beginning of period	103,752	78,184
+ / –	Change due to currency translation	–116	88
=	Cash funds after currency translation	103,636	78,272
	Cash funds at end of period
	Cash in hand and bank balances	73,189	67,992
–	Bank liabilities from overdrafts	–484	–322
=	Cash and cash equivalents at end of period	72,705	67,670
	Change in cash and cash equivalents during the period (= total cash flow)	–30,931	–10,602
	Net cash flow from operating activities	–29,274	–9,062
+	Cash flow from investing activities	–1,323	–1,198
+	Cash flow from financing activities	–334	–342
=	Total cash flow	–30,931	–10,602

Consolidated Statement of Changes in Equity

			Retained
			earnings and
	Share	Capital	unappropriated	Hedging	Reserve for actuarial	Currency	Total
EURk	capital	reserves	surplus	reserve	gains / losses	translation	equity
Equity as per
Jan. 1, 2012	17,491	60,166	238,613	–248	–105	1,740	317,657
Comprehensive
income			9,388	-154	0	1,076	10,310
Dividend payment in
2012 for 2011			0				0
Equity as per
March 31, 2012	17,491	60,166	248,001	-402	-105	2,816	327,967
Equity as per
Jan. 1, 2011	17,491	60,166	208,941	–1,005	–172	2,352	287,773
Comprehensive
income			8,386	455	26	–687	8,180
Dividend payment in
2011 for 2010			0				0
Equity as per
March 31, 2011	17,491	60,166	217,327	–550	–146	1,665	295,953

Consolidated Segment Report

		Leasing segment		Banking segment		Factoring segment		Total segments		Consolidation effects		Consolidated Group
Jan. to March (EURk)	2012	2011	2012	2011	2012	2011	2012	2011	2012	2011	2012	2011
Operating segment income	29,589	27,116	1,125	955	343	285	31,057	28,356	0	0	31,057	28,356
Segment result	11,953	10,404	1,098	818	39	30	13,090	11,252	0	0	13,090	11,252
Reconciliation to consoli
dated financial statements
Operating result											13,091	11,252
Other financial income											–333	–60
Taxes											3,369	2,806
Net profit according to con
solidated income statement											9,388	8,386
As per March 31
Segment assets	1,952,001	1,664,789	223,573	185,923	9,724	7,665	2,185,298	1,858,377	-195,911	-159,925	1,989,387	1,698,452
Reconciliation to consoli
dated financial statements
Tax assets											19,364	20,445
Total assets according to
consolidated statement of
financial position											2,008,751	1,718,897

Business Segments

Due to the increased internationalisation, the primary reporting of GRENKE Consolidated Group segments is according to the dominant organisational structure which is based on its operating activities. Therefore, the operating segments are divided into Leasing, Banking, and Factoring in accordance with the management of the company's segments. The previous year's regional split within the Leasing segment is combined for the quarterly reporting as of January 1, 2012. The previous year's figures were adjusted accordingly. Going forward, a regional split of the business activities will be provided on a yearly basis as part of the annual report for each financial year. Detailed financial information is available for the operating segments.

Reportable Segments

The Leasing segment comprises all of the activities that are related to the Consolidated Group's leasing business. The service offer encompasses the provision of financing to commercial lessees, rental, insurance, service, and maintenance offerings, as well as the utilization of used equipment.

The Banking segment comprises the activities of GRENKE BANK AG, which regards itself as a financing partner particularly to smalland medium-sized companies. Additionally, GRENKE BANK AG cooperates with development banks in providing financing to this clientele in the context of business start-ups. Furthermore, fixed-term deposits are offered to investors via its internet presence. The bank's business is focused primarily on German customers.

The Factoring segment contains the activities of GRENKEFACTORING GmbH, which performs traditional factoring services and which is focused on small-ticket factoring in Germany.

Notes to the Interim Consolidated Financial Statements

Accounting Policies

The interim consolidated financial statements of GRENKELEASING AG (hereafter also referred to as "GRENKE Consolidated Group") as at March 31, 2012 meets the requirements of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and adopted by the EU, as did the consolidated financial statements as at December 31, 2011. The provisions on interim reporting set out in IAS 34 were applied accordingly. All interim financial statements of the companies included in the consolidated financial statements of the GRENKE Consolidated Group have been prepared using uniform accounting policies.

As interim reporting is based on the consolidated financial statements, detailed information on accounting and consolidation policies can be found in the notes to the consolidated financial statements for the year ended December 31, 2011. 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 amendment to IAS 12 "Income Taxes" - Deferred Taxes: Recovery of Underlying Assets published in December 2010 by the IASB (January 1, 2012) and the amended pronouncements of IFRS 1 "First-time Adoption of International Financial Reporting Standards" – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (July 1, 2011) had no impact on the accounting policies in the consolidated financial statements. The EU endorsement for both amendments is still pending. The amendments to IFRS 7 "Financial Instruments: Disclosures" – Disclosures regarding the Transfer of Financial Assets, published on October 7, 2010 by the IASB (July 1, 2011), will bring about additions to the disclosure requirements for the transfers of financial assets in the consolidated financial statements as at December 31, 2012.

Use of Assumptions and Estimates

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

• Measurement of allowances for non-performing lease receivables for contracts terminated or in arrears 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 valuation 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 which are 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 from 5 percent to 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 and dependent on the term of the lease, residual values of additions up to and including 2006, ranged between 11 percent and 15 percent of historical cost. In fiscal year 2007, due to the strengthening of forecasting capabilities for the statistical population, this allocation could be further broken down into more detailed maturity groups. For additions from 2007 to 2008, the residual values range between 7.7 percent and 28.4 percent of historical cost depending upon the duration of the lease. Residual values of between 6.5 percent and 28.4 percent were applied for additions from 2009 onwards. For additions after April 1, 2011, residual values of between 6.5 percent and 23.5 percent were applied and remain applicable.

Proceeds are a best estimate and based on statistical analyses. If the post-transaction recoverable amount (from sale and subsequent lease) is lower than expected, the lease receivables are written down. However, any increase in the 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 cost. Lease assets for sale are measured at historical residual values, taking their actual saleability into account. As at the end of the reporting period, the residual values used had amounted to between 3.0 percent and 17.8 percent of the historical cost (previous year: between 3.0 percent and 17.8 percent). If a sale is considered unlikely due to the condition of the asset, the asset is written off and expensed.

Lease Receivables

EURk	March 31, 2012	March 31, 2011
Changes in performing lease receivables
Balance at beginning of period	1,484,934	1,241,374
+ Change during the period	73,568	46,804
Lease receivables (current + non-current) from current contracts at end of period	1,558,502	1,288,178
Changes in non-performing lease receivables
Gross receivables at beginning of period	168,393	170,346
– Accumulated valuation allowances at beginning of period	–84,573	–83,496
= Non-performing lease receivables at beginning of period	83,820	86,850
+ Additions to gross receivables during the period	12,344	9,226
– Disposals of gross receivables during the period	8,108	5,897
+ Disposal of accumulated valuation allowances during the period	5,115	6,073
– Addition of accumulated valuation allowances during the period	5,677	6,828
Non-performing lease receivables at end of period	87,494	89,424
Lease receivables (carrying amounts of current and non-current receivables) at beginning
of period	1,568,754	1,328,224
Lease receivables (carrying amounts of current and non-current receivables) at end of
period	1,645,996	1,377,602

Financial Liabilities

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

EURk	March 31, 2012	Dec. 31, 2011
Financial liabilities
Current financial liabilities
Liabilities from the refinancing of the leasing business	486,205	438,624
ABS/ABCP related liabilities	76,620	95,269
Bonds, revolving facilities, debentures, and private placements	351,468	301,393
Committed development loans	7,693	164
Sales of receivables agreements	50,424	41,798
Current liabilities from deposit business	91,780	93,897
Current bank liabilities	1,084	1,073
thereof current account liabilities	484	482
Total current financial liabilities	579,069	533,594

EURk	March 31, 2012	Dec. 31, 2011
Non-current financial liabilities
Liabilities from the refinancing of the leasing business	897,794	929,008
ABS/ABCP related liabilities	233,401	254,768
Bonds, debentures, and private placements	604,588	606,955
Committed development loans	16,784	23,384
Sales of receivables agreements	43,021	43,901
Non-current liabilities from deposit business	66,052	61,230
Non-current bank liabilities	2,063	2,406
Total non-current financial liabilities	965,909	992,644
Total financial liabilities	1,544,978	1,526,238

ABS Bond

On February 4, 2010, an ABS bond amounting to EUR 160,000k was placed via the special-purpose entity GOALS FINANCING 2009 LIMITED (GOALS 2009-1). The contracts with GOALS FINANCING 2009 LIMITED allow the GRENKE Consolidated Group to sell further lease agreements on a revolving basis for a total of three years and up to a maximum volume of EUR 300,000k. The interest rate is variable at three-month EURIBOR plus a spread ranging between 1.25 percent 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 highest rated tranche is a reflection of the quality of the leasing portfolio and the internal risk management and directly impacts the costs of this type of financing. Of this bond, 76.5 percent (EUR 122,400k) 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 fully subscribed to the last tranche (nominal amount: EUR 24,200k) of the ABS bond. As a result, the GRENKE Consolidated Group received a cash inflow of only EUR 135,800k. The carrying amount of the total liability was EUR 135,995k as at the end of the reporting period.

ABCP Programmes

The GRENKELEASING AG Consolidated Group has several asset-backed commercial paper programmes (ABCPs) with a total volume of EUR 400,000k as at the end of the reporting period. An overview of the programmes as at the end of the reporting period is as follows:

		Lease receivables eligible for	Programme volume in EURk	Programme volume in EURk
ABCP programme / SPE	Initiating bank	refinancing	as at March 31, 2012	as at Dec. 31, 2011
		German and Austrian
Compass Variety Funding Limited	WestLB	lease receivables	40,000	40,000
		German and French lease
Kebnekaise Funding Limited	SEB AB	receivables	110,000	110,000
CORAL PURCHASING Limited	DZ-Bank	German lease receivables	150,000	150,000
Elektra Purchase No. 25 Limited	UniCredit	French lease receivables	100,000	100,000
Total			400,000	400,000

The ABCP programmes grant GRENKE FINANCE Plc. and Grenke Investitionen Verwaltungs KGaA the right to refinance or to sell receivables to the respective programmes for a certain period of time. The cap on the purchase volume is determined by the volume of the programme, which is normally backed by the organising bank in the form of a liquidity commitment in the corresponding amount. As at the reporting date, a total volume of EUR 174,025k at book value was utilised.

The ABCP programme Compass Variety Funding Limited with WestLB was fixed at EUR 40,000k and extended on January 19, 2012 by an additional two years until January 19, 2014. The programme commitment for the Kebnekaise Funding Limited ABCP programme was extended and will run until November 30, 2012. The programme commitment for the CORAL Purchasing Limited ABCP programme will run until September 5, 2012, while the programme commitment for the Elektra Purchase No. 25 Limited ABCP programme will run until July 30, 2012.

To reflect the current legal conditions in France in the securitisation of French lease receivables (separate French securitisation act), a French securitisation vehicle (FCT = fonds commun de titrisation à compartiments / French issuer) was founded in 2009. The FCT initially consisted of just one so-called compartment ("FCT GK 1"). A second compartment was founded on January 18, 2011 ("FCT GK 2"). Within the FCT, the individual compartments are kept strictly separate from each other ("ring-fenced"). At a later date, it will be possible for the GRENKE Consolidated Group to form further compartments within the FCT to finance further or other ABCP transactions.

"FCT GK 2" is refinanced through the issue of FCT notes which are exclusively subscribed to by SPE Elektra Purchase No. 25 Limited. Therefore, the "FCT GK 2" compartment serves the sole purpose of the securitisation of French lease receivables within the ABCP programme through Elektra Purchase No. 25 Limited. As at the reporting date, 42.85 percent of the refinancing framework of the ABCP programmes was utilised. The corresponding amount of receivables was thus assigned by way of collateral.

Sales of Receivables Agreements

Such agreements are currently in place with Stadtsparkasse Baden-Baden Gaggenau, Sparkasse Karlsruhe, Commerzbank AG, UBS AG in Switzerland, the Commerzbank subsidiary BRE-Bank SA in Poland, and Norddeutsche Landesbank for receivables in the UK. One new addition was the agreement with DZ Bank Polska in Poland in February 2012. The agreements with Commerzbank AG were terminated in 2009, and since this time, no new refinancing has been performed. However, the portfolios contracted until that time will be repaid as scheduled. The agreement with BRE-Bank SA in Poland, which was also terminated in mid-2009, was replaced by a new agreement in February 2012. The first refinancing under this new agreement had already taken place in the first quarter of 2012.

Bonds, Debentures, and Private Placements

On January 24, 2012, a new fixed-rate bond was issued with a volume of EUR 100,000k and a term of 3.5 years until July 24, 2015. The bond has an interest coupon of 4.25 percent and a discount of EUR 375k.

Development Loans

NRW.Bank

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 had opened up a new opportunity for incorporating development funding into lease financing. The refinancing of lease agreements takes place through the purchase of receivables by GRENKE BANK AG. These lease agreements are available exclusively for investment plans of commercial enterprises and members of self-employed professions with annual sales of up to EUR 500,000k located in North Rhine-Westphalia.

GRENKE BANK AG was granted a global loan of EUR 15,000k by NRW.Bank for 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 six-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 the six-month Euribor and a bullet maturity of three years. Its margin was 0.19 percent. Hence, the first global loan is fully utilized up to the planned volume of EUR 15,000k.

On July 28, 2011, GRENKELEASING AG and GRENKE BANK AG together with NRW.Bank, the development bank of the state of North Rhine-Westphalia, continued and expanded the cooperation, concluded on February 18, 2010, by agreeing to another global loan totalling EUR 15,000k. This second loan was first drawn down on August 29, 2011 in the amount of EUR 7,500k with a bullet maturity of three years. The interest rate relates to the six-month Euribor plus a margin of 0.07 percent.

Thüringer Aufbaubank

On January 16, 2012, GRENKELEASING AG and GRENKE BANK AG entered into a cooperation agreement with Thüringer Aufbaubank (TAB), the development bank of the state of Thuringia. This cooperation agreement is similar to the cooperation agreement with NRW.BANK. The refinancing of lease agreements takes place through the purchase of receivables by GRENKE BANK AG. These lease agreements are available exclusively for investments made by small and medium-sized enterprises and selfemployed professionals located in Thuringia with annual sales of up to EUR 500,000k.

GRENKE BANK AG was granted a global loan of EUR 5,000k by TAB for this purpose. As of the time this report was prepared, this loan had not yet been drawn down. A specific interest rate will not be determined until the amount of the first borrowing limit has been drawn down. As an indication, 58 basis points are added to the basic interest rate for both the fixed interest rate and the floating interest rate. The loan has a term of three years.

Revolving Credit Facility

In the context of revolving credit facilities with a total volume of EUR 120,000k available to GRENKE FINANCE Plc. Dublin, Ireland, the GRENKE Consolidated Group has the possibility to take on short-term funds with a minimum amount of EUR 5,000k and a term of usually one month at any time. The revolving credit facilities totalling EUR 120,000k have been arranged with four banks with a volume of EUR 30,000k each.

Once again, as in previous years, all four of the credit facilities with a total volume of EUR 120,000k have been extended by one year. The facility with SEB has been extended until March 2013 and the facility with WestLB has been extended until February 2013. The facility with Deutsche Bank will be in place until September 2012 and the facility with DZ-Bank until October 2012. As at March 31, 2012, this revolving credit facility had been utilised in the amount of EUR 30,000k (previous year: EUR 60,000k). Utilisation is reported under current liabilities from the refinancing of leasing business.

Money Market Facility

A non-committed money market facility of EUR 25,000k is in place with Bayerische Landesbank. As at March 31, 2012, this credit line had been utilised in the amount of EUR 25,000k (previous year: EUR 20,000k). A further money market facility of EUR 15,000k was agreed to with Norddeutsche Landesbank on August 25, 2011. This line had been utilised in the amount of EUR 5,000k as at March 31, 2012.

On November 17, 2011, GRENKE FINANCE Plc. and GRENKELEASING AG had agreed on a further money market line with a volume of EUR 10,000k with Commerzbank AG. As at March 31, 2011, EUR 5,000k of this line had been utilised.

Commercial Paper

On October 27, 2011, a general agreement was signed for a commercial paper programme. This agreement has given the GRENKE Consolidated Group the possibility to issue commercial paper of up to a total volume of EUR 250,000k with a term of between 1 and 364 days. On December 20, 2011, the first commercial paper with a volume of EUR 5,000k was issued under the commercial paper programme. The commercial paper was repaid on January 13, 2012. Utilisation of the commercial paper programme amounted to EUR 3,000k as at March 31, 2012.

Income Taxes

The main components of income tax expense in the consolidated income statement are:

EURk	Jan. 1 - March 31, 2012 Jan. 1 - March 31, 2011
Income taxes
Current tax expense	5,352	5,698
Deferred taxes	–1,983	–2,892
Income tax expense	3,369	2,806

Other Financial Obligations

As at March 31, 2012, there were obligations of EUR 4,888k for the extension of an office building.

Acquisitions

For information regarding business combinations prior to financial year 2012, please refer to the notes to the Company's consolidated financial statements for the year ended December 31, 2011.

Dividend Payment

The resolution on the appropriation of GRENKELEASING AG's profits for fiscal year 2011 in the amount of EUR 22,284,787.12 will be adopted by the Annual General Meeting on May 10, 2012. The Board of Directors and the Supervisory Board will propose a dividend of EUR 0.75 per share. The Board of Directors will also propose to the Annual General Meeting that EUR 11,000,000.00 be appropriated to retained earnings. The remaining amount of EUR 1,021,721.87, after deduction of the dividend totalling EUR 10,263,074.25, is to be carried forward to new account.

In the previous year, the Annual General Meeting adopted the proposal of the Board of Directors and the Supervisory Board, resolving and performing the appropriation of the unappropriated profit for 2010 as follows:

Unappropriated surplus for 2010	EUR 41,832,253.42
Distribution of a dividend of EUR 0.70 per share for a total of 13,684,099 shares	EUR 9,578,869.30
Appropriation to retained earnings	EUR 29,000,000.00
Profit carried forward (to new account)	EUR 3,253,384.12

The dividend was paid to the shareholders of GRENKELEASING AG on May 11, 2011.

Related Party Disclosures

On February 17, 2012, Prof. Dr. Thilo Wörn acquired 650 shares of GRENKELEASING AG on the stock exchange (Xetra).

By way of signature dated June 29, 2010 and July 13, 2010, the Supervisory Board of GRENKELEASING AG had concluded phantom stock agreements with the Board of Directors members Dr. Uwe 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 in GRENKELEASING AG, respectively, in relation to a defined basic share price for fiscal years 2010, 2011, and 2012. This basic 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 was EUR 37.72. The basic share price for 2012 is EUR 35.81. The maximum payment arising from this agreement is limited to EUR 600,000 and EUR 300,000, respectively, for the period of three years. Under the programme, 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.

The value of the phantom stock agreements granted for 2012 totalled EUR 457k as at March 31, 2012. As payment is not due until the end of 2012, a proportionate amount of EUR 114k has been expensed for the first three months of the year. For 2010, a total of EUR 374k was paid out on the basis of the phantom stock agreements for Dr. Hack and Mr. Christ. No payment was made for 2011 on the basis of the phantom stock agreements.

Employees

In the reporting period, the GRENKELEASING AG Consolidated Group had an average of 630 employees (previous year: 556), not including the Board of Directors.

Events after the Balance Sheet Date

No events have occurred after the balance sheet date that require reporting.

Calendar of Events for 2012

April 26, 2012 Publication of the quarterly financial report as at March 31, 2012

May 10, 2012 Annual General Meeting (Kongresshaus Baden-Baden)

July 26, 2012 Publication of the quarterly financial report as at June 30, 2012

October 25, 2012 Publication of the quarterly financial report as at September 30, 2012

Contact Details

Renate Hauss Corporate Communications

• Tel.: +49 (0) 7221 5007-204
• Fax: +49 (0) 7221 5007-4218

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.

GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden

Telefon: +49 7221 5007-204 Telefax: +49 7221 5007-4218

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

E-Mail: investor@grenke.de