Grenke AG — Interim / Quarterly Report 2013

Apr 25, 2013

GRENKELEASING AG Group

Quarterly Financial Report as per March 31, 2013

Contents

Key Figures	2
Letter to Shareholders from the Board of Directors	4
The GRENKELEASING AG Share	5
Interim Management Report	6
The Growth Strategy of the GRENKE Group	6
The Economic Environment	8
Report on the Results of Operations	8
Report on Financial Position and Net Assets	11
Report on the Forecasts and Outlook (including Risks and Opportunities)	12
Interim Consolidated Financial Statements	14
Notes to the Interim Consolidated Financial Statements	22
Calendar of Events and Contact Information	32

Key Figures GRENKE Group

	Jan. 1, 2013 to		Jan. 1, 2012 to
	March 31, 2013	Change (%)	March 31, 2012	Unit
New business
GRENKE Group Leasing + Factoring + Business start-up financing incl.
franchise partners	275,642	14.9	239,963	EURk
– of which Germany	91,712	9.0	84,150	EURk
– of which international	183,930	18.0	155,813	EURk
GRENKE Group Leasing	239,424	11.7	214,412	EURk
– of which international	160,152	11.5	143,693	EURk
– of which franchise international	9,791	82.8	5,356	EURk
– of which Germany	69,481	6.3	65,363	EURk
Western Europe (without Germany)*	79,795	20.3	66,330	EURk
Southern Europe*	50,778	4.5	48,589	EURk
Northern / Eastern Europe*	34,215	7.4	31,871	EURk
Other regions*	5,155	128.2	2,259	EURk
GRENKE Group Factoring	35,261	43.8	24,516	EURk
– of which Germany	21,275	19.8	17,752	EURk
– of which franchise international	13,986	106.8	6,764	EURk
GRENKE Bank
Deposits	241,014	59.9	150,682	EURk
Business start-up financing volume	957	–7.5	1,035	EURk
Contribution margin 2 on new business
GRENKE Group Leasing	46,821	10.1	42,533	EURk
– of which international	34,762	10.6	31,437	EURk
– of which franchise international	3,306	194.7	1,122	EURk
– of which Germany	8,753	–12.2	9,974	EURk
Western Europe (without Germany)*	17,332	23.1	14,077	EURk
Southern Europe*	11,558	0.6	11,491	EURk
Northern / Eastern Europe*	6,996	5.9	6,605	EURk
Other regions*	2,182	465.3	386	EURk
Further information leasing business
Number of new contracts	30,002	15.7	25,926	units
Share of IT products in lease portfolio	87	–1.1	88	percent
Share of corporate customers in lease portfolio	100	0.0	100	percent
Mean acquisition value	8.0	–3.6	8.3	EURk
Mean term of contract	47	0.0	47	months
Volume of leased assets	2,705	17.7	2,299	EURm
Number of current contracts	335,860	14.9	292,411	units

* Regions: Western Europe (withoutGermany): Austria, Belgium, France, Luxembourg, the Netherlands, Switzerland

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

Northern / Eastern Europe: Denmark, Finland, Great Britain, Ireland, Norway, Sweden / Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia Other regions: Brazil, Turkey

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, 2013 to		Jan. 1, 2012 to
	March 31, 2013	Change (%)	March 31, 2012	Unit
Key figures income statement
Net interest income	30,821	22.1	25,240	EURk
Settlement of claims and risk provision	10,885	2.7	10,600	EURk
Profit from insurance business	7,885	19.0	6,628	EURk
Profit from new business	10,157	20.9	8,404	EURk
Profit from disposals (income exceeding the calculated residual value)	914	–34.0	1,385	EURk
Other operating income	751	–11.4	848	EURk
Cost of new contracts	6,799	19.7	5,682	EURk
Cost of current contracts	2,089	19.2	1,752	EURk
Project costs and basic distribution costs	7,846	41.6	5,542	EURk
Management costs	4,634	7.9	4,293	EURk
Other costs	2,042	32.1	1,546	EURk
Operating result	16,233	24.0	13,090	EURk
Other interest income (expense)	222	–29.1	313	EURk
Income / expenses from fair value measurement	44	–320.0	–20	EURk
EBT (earnings before taxes)	16,055	25.9	12,757	EURk
Net Profit	11,491	22.4	9,388	EURk
Earnings per share (according to IFRS)	0.81	17.4	0.69	EUR
Further Information
Dividends	0.80	6.7	0.75	EUR
Embedded value, leasing contract portfolio (incl. equity before taxes)	620	26.3	491	EURm
Embedded value, leasing contract portfolio (incl. equity after taxes)	563	26.0	447	EURm
Cost / income ratio	59.4	–0.3	59.6	percent
Return on equity (ROE) after taxes	11.1	–2.6	11.4	percent
Average number of employees	780	23.8	630	employees
Staff costs	12,076	20.4	10,027	EURk
– of which total remuneration	9,943	20.1	8,276	EURk
– of which fixed remuneration	7,496	19.8	6,259	EURk
– of which variable remuneration	2,447	21.3	2,017	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,

We report to you today on a favourable first quarter of the new 2013 fiscal year. Once again we were able to profit from the highmargin new business of the past quarters which is successively flowing into our income statement over the term of the contracts. Additionally, losses rose at a slower pace and the remaining income components contributed positively.

Expenses developed as planned. Overall, net profit of the GRENKE Consolidated Group rose 22 percent to EUR 11.5 million. The GRENKE Group was able to increase new business by 15 percent to EUR 275.6 million. Thus, we are in line with our plan and confirm our forecast for growth in GRENKE Group's new business in the range of 13 to 16 percent and net profit of the GRENKE Consolidated Group in the range of EUR 44 to 48 million for fiscal year 2013.

What is important for the future and therefore particularly pleasing is the continued high contribution margin 2 (CM2) of the new business in the GRENKE Group's leasing business in the reporting quarter. This margin was 19.6 percent after 19.8 percent in the previous year. We continue to achieve rapid growth and at the same time maintain risk-adequate margins. We have modified our CM2 margin calculation with the aim of achieving an even more accurate sales management and now base the calculation solely on individual contract costs. The previous year's figure was restated accordingly.

As part of our expansion strategy, in the first three months of the year we have opened two additional locations and have expanded the regional reach of our factoring services with one of the franchise partners. We are preparing for adding new locations and for entering markets in new countries.

This is how we aim to continue to strengthen our position as one of the leading European financial service providers for small and midsized companies. In February of this year we secured our growth path with additional equity. We were met with a very positive response by investors and were able to place approximately 1 million new shares within just a few hours and generated net proceeds of nearly EUR 54 million for GRENKELEASING AG. The offer was heavily oversubscribed.

This high degree of approval and support on the part of our shareholders are both an incentive and commitment for us to apply ourselves as much as possible in promoting the development of the GRENKE Group whole-heartedly but also with a sense of proportion and to continue with the success we have experienced thus far. We thank you very much for your trust and invite you to continue accompanying us in the years ahead.

Baden-Baden, April 2013

Wolfgang Grenke Chairman of the Board of Directors

The GRENKELEASING AG Share

The positivemood of the stockmarket in 2012 continued unabated in the first quarter of 2013. This also benefited small-cap shares. The SDAX price index, which includes GRENKELEASING AG, rose 8.4 percent in the first quarter of the year. The GRENKELEASING AG shares performed even better than the index and rose 9.5 percent. Following a closing price of EUR 50.61 on XETRA on the last trading day of 2012, GRENKELEASING AG shares ended the first quarter on March 28 with a price of EUR 55.44. The performance was even more favourable when compared to the price index of the German financial shares of the Prime Standard segment (DAXsector Financial Services), of which GRENKELEASING AG is also a member. In the first quarter of 2013, this index on balance saw only a sideways trend.

Once again the stock market reacted positively to the release of our corporate results. Following our announcement on the fiscal year 2012 results on February 6, 2013, the following ten trading days saw nearly a 10 percent increase in GRENKELEASING AG's share price. The very successful capital increase executed by way of an accelerated book building on February 21, 2013 – which was heavily oversubscribed – had only impacted the share price development for a short period of time. Thereafter, within a period of a few trading days, the shares once again reached their previous level. The highest share price year to date was EUR 59.12 on March 19. Thereafter, the share followed in line with the overall mild market correction until the end of the quarter.

Interim Management Report

The Growth Strategy of the GRENKE Group

The GRENKE Group regards itself as a growth company. Established business processes and a sophisticated IT-based scoring model enable us to correctly estimate risks and to profit in periods of both, overall economic strength as well as in recessionary periods. This consistent growth strategy poses the first of two central elements in the GRENKE Group's corporate philosophy which aims for sustainable added value. The second element is an effective risk management system which has been continuously expanded over a period of several years. Together with our standardised IT-supported business processing, this puts us in a position to steer and take advantage of the risks and opportunities inherent in our business; not only in the area of refinancing but also on the customer side of the business through flexibility and cost efficiency. In order to limit risks effectively, we ensure a broadly diversified portfolio over customers and industries.

The over EUR 1 billion in new business achieved in the past fiscal year underlines the success of our business model. We were able to continue this development in the reporting quarter: GRENKE Group's new business volume – which is the sum of acquisition costs of newly purchased lease assets, the factoring volume, and business start-up financing – grew 15 percent to EUR 275.6 million. The international business continued to be our clear focus. Next to entering new and attractive markets, we intensified our proximity to our customers in markets where we were already present. One example in the reporting quarter was the establishment of Madrid East, our fourth location in Spain. Another example was Cluj-Napcoa our second location in Romania. In addition, a franchise contract for the market entry into Great Britain with our factoring product had been signed.

We are stimulating additional growth through the continuous expansion in our offering forfinancing solutions and the further diversification of our product range by entering new regional markets and further developing our already existingmarket presence. In order to diversify risk, we primarily concentrate on smaller contract volumes which can be processed at a very low cost per contract as a result of our efficient processes.Competitors are increasingly exiting themarket due to cost reasons. This gives us the opportunity to further boost our position as a leading provider of financial services for small andmid-sized companies.Additional components of the productrange include purchase of small-ticketreceivables (factoring), and various financing, investment, and payment products ofGRENKEBANKAG.

Furthermore, GRENKE Bank offers financing in collaboration with a growing number of development banks of individual German states and the federal government for business start-ups and provides development funds. Currently, collaborations exist with the KfW Mittelstandsbank, the Investitionsbank Berlin (IBB), the L-Bank in Baden-Württemberg, LfA Förderbank Bayern, NRW.BANK in North Rhine-Westphalia, and the Thüringer Aufbaubank. The development funds offered are targeted at small and mid-sized companies and selfemployed professionals who finance new investments via leasing. Until now, over 5,953 leasing contracts have been concluded as part of these collaborations.

The GRENKE Group offers business and private customers competitive conditions. Sales channels specialised in indirect and online solutions as well as fully-automated contract processing secure attractive margins. We do not compromise on our strategic targets of balance sheet strength and profitability. With our broad, international presence, we can also specifically concentrate on those sales markets having the most attractive opportunity and risk profiles.

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

Southern Europe: Italy, Malta, Portugal, Slovenia, Spain Northern / Eastern Europe: Denmark, Finland, Great Britain, Ireland, Norway, Sweden / Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia Other regions: Brazil, Turkey

The Economic Environment

The eurozone's economy was unable to find its way out of recession in the first quarter of 2013. By March 2013, the economic downturn had gained momentum once more after the gross domestic product of the 17 countries in the final quarter of 2012 came in at a decline of 0.6 percent. This had been its largest drop since the height of the 2009 financial crisis. Adding to the unease are the current developments in Cyprus and other European countries which have been met with considerable downturns. This includes France, the second largest economy in the monetary union, which is also characterised by a slump in economic performance. The German economy is also showing a mild tendency towards weakness which was prompted by weak demand from the southern part of Europe. This is offset by higher demand for industrial products from Asia and North America which in total resulted in slight growth in the German economy. What continues to have a positive impact is the favourable state of the labour market.

GRENKE Group's new business continues to be impacted to only a limited extent by the overall economic development in its target markets. Here key industry trends such as the bank's business policy in the leasing business or the sector's increasing regulatory requirements, have gained much greater significance. No deviations from these basic statements appeared in the reporting quarter in any of our regional markets.

The impact of the market and central bank interest rates on our refinancing costs is also limited. The GRENKE Group has a broad range of refinancing instruments at its disposal which can be employed in a flexible manner depending upon the market environment and the expected development in interest rates. The recent reconfirmation of our good credit rating in February 2013 provides us with access to financing at all times whether it be through programmes with banks, via our direct access to the capital market, or through the actively managed deposits at GRENKE BANK AG.

Report on the Results of Operations

Selected information from the consolidated income statement

	Jan. 1, 2013 to	Jan. 1, 2012 to
EURk	March 31, 2013	March 31, 2012
Net interest income	30,821	25,240
Settlement of claims and risk provision	10,885	10,600
Net interest income after settlement of claims and risk provision	19,936	14,640
Profit from insurance business	7,885	6,628
Profit from new business	10,157	8,404
Profit from disposals	914	1,385
Income from operating business	38,892	31,057
Staff costs	12,076	10,027
Of which total remuneration	9.943	8.276
Of which fixed remuneration	7.496	6.259
Of which variable remuneration	2.447	2.017
Selling and administrative expenses (excluding staff costs)	8,859	6,997
Earnings before taxes	16,055	12,757
Net profit	11,491	9,388
Earnings per share (basic) in EUR	0.81	0.69
Earnings per share (diluted) in EUR	0.81	0.69

We have again significantly expanded GRENKELEASING AG Consolidated Group's (hereinafter referred to as GRENKE Consolidated Group) earnings strength in the first quarter of the new fiscal year. Special attention should be paid to the renewed increase of 22 percent in the net interest income as compared to the first quarter of last year. Here, we continued to benefit from the high contribution margins of the new business of the past quarters coupled with only marginal increases in expenses from interest on refinancing and the deposit business due to the currently low interest rate environment.

Expenses for settlement of claims and risk provision rose a disproportional 3 percent in the reporting quarter. The loss rate in the first quarter of 2013 was 1.65 percent after 1.9 percent in the first quarter of 2012. Thus, the loss rate has declined slightly compared to the level of 1.7 percent as per the end of fiscal year 2012. This development was very pleasing as was the expansion in the net interest income after settlement of claims and risk provision of 36 percent in the first quarter of 2013. Nevertheless, expenses for the settlement of claims and risk provision tend to be volatile, particularly on a quarterly basis. Risks continue to remain high due to the overall economically difficult situation in some of the European countries.

In addition, we achieved strong growth in the profit from insurance business as well as profit from new business. These improved in the reporting quarter by 19 and 21 percent, respectively. Profit from disposal which is also very volatile on a quarterly basis was 34 percent below last year's level. In total, the income from operating business rose 25 percent as compared to the same period of 2012.

The acquisitions in the third quarter of 2012 of the companies of former franchisees in Spain (Madrid / Málaga), Romania, and Portugal were reflected in our expenses. Since these companies were not yet included in the comparative figures of the first quarter of 2012, the reported increases in the expense positions are relatively high. Among others, this became noticeable in the staff costs. With an increase of 144 in the number of employees – 60 of those due to the acquisition – the staff costs rose 20 percent from EUR 10.0 million to EUR 12.1 million. Aside from the consolidation effects, depreciation and impairment had a disproportional rise of 67 percent. This reflects the capitalisation of customer relationships and non-competitive clauses as intangible assets in the context of the business combinations which are now subject to scheduled amortisation.

In the course of our growing new business and our international expansion, our selling expenses grew disproportionately resulting in a 27 percent rise in selling and administrative expenses. The increase in other operating expenses was due to consolidation effects, ordinary business development, and non-cash currency expenses. Overall, the operating result in the first quarter of 2013 rose 24 percent to EUR 16.2 million as compared to EUR 13.1 million in the comparative quarter of the prior year.

The tax rate of 28 percent after 26 percent was within the range of normal quarterly fluctuations. Thus, the net profit in the reporting quarter rose 22 percent to EUR 11.5 million after EUR 9.4 million in the comparable quarter of the previous year. This resulted in earnings per share of EUR 0.81 after EUR 0.69.

Segment Development

Business segments

GRENKE Consolidated Group's reporting on the development of its segments is aligned to the predominant organisational structure within the GRENKE Consolidated Group. Therefore, the operating segments are divided into Leasing, Banking, and Factoring in accordance with the management of the company's segments. A regional spit of the business activities is provided on a yearly basis as part of GRENKE's consolidated financial statements for each fiscal year. Separate financial information is available for the three operating segments. The result from intra-group risk provision resulting from the purchase of lease receivables by GRENKE BANK AG which had previously been reported as other comprehensive income in the segment reporting, has been reclassified to operating

segment income. The previous year's quarter had been restated in an amount of EUR 790k accordingly. This had no impact on segment results.

Business Development

The GRENKE Group leasing segment is still the most important earnings pillar for the GRENKE Consolidated Group. Consequently, the information in the previous section on the results of operations of the GRENKE Consolidated Group also essentially applies to the leasing segment.

In the first quarter, the operating segment income of GRENKE Group Leasing rose 25 percent to EUR 35.9 million after EUR 28.8 million (previous year's figure restated). The segment result grew 22 percent to EUR 14.5million after EUR 12.0million. In the Factoring segment, the operating segment income was 8 percent higher than the previous year's level of EUR 0.3 million. The segment result declined from EUR 0.04 million in the previous year to EUR 0.01 million in the reporting quarter. In contrast, the Banking segment showed an above-average rise of operating segment income of 38 percent to EUR 2.6 million after EUR 1.9 million (previous year's figure restated), whereas the segment result grew by 54 percent to EUR 1.7 million after EUR 1.1 million inthe prior year.

In the first three months, GRENKE Group Leasing's new business had an overall favourable development and rose 12 percent to EUR 239.4 million after EUR 214.4 million in the previous year. This rise was primarily due to the sustainable and stable growth of our international markets. In Western Europe (without Germany), new business increased by over 20 percent to EUR 79.8 million after EUR 66.3 million in the prior year. We achieved above-average growth in other regions which is comprised of Brazil and Turkey. Here we were able to more than double the new business which climbed 128 percent to EUR 5.2 million after EUR 2.3 million in the prior year. In Northern / Eastern Europe as well as in Southern Europe new business rose 5 percent and 7 percent. In the already highlypenetrated German market we grew new business 6 percent from EUR 65.4million to EUR 69.5 million.

In order to manage sales even more efficiently, at the beginning of the business year, we modified our contribution margin 2 calculation method. The new method is based solely on the individual contract costs during the duration and, in contrast to the previous calculation, no longer includes, in particular, the management costs of the respective subsidiaries and branches. However, we will continue to publish this data in the GRENKE Consolidated Group's quarterly and annual financial reports. The CM2 margin of GRENKE Group Leasing's new business reached EUR 46.8 million in the first quarter after EUR 42.5 million in the previous year (figure restated). This amounts to an increase of 10 percent. The CM2 margin was slightly lower at 19.6 percent after 19.8 percent in the previous year (figure restated). This margin continues to reflect the on-going favourable competitive environment in our international markets while in our German domestic market we were able to accept lower contribution margins without having to make a compromise on our appropriate risk management.

Great success was recorded once again in the Factoring segment in the reporting quarter. The continued diversification of our product range enables us to specifically target small and medium-sized customers with additional offers and effectively address them at the same time. The new business volume of GRENKE Group Factoring rose 44 percent in the first quarter to EUR 35.3 million after EUR 24.5 million in the prior year. The international business, which had more than doubled, was the main contributor to this performance. In Germany, we experienced a sustainable and stable 20 percent rise in new business to EUR 21.3 million after EUR 17.8 million in the previous year. The profit margin of 2.3 percent in the quarter was at the previous year's level and is based on an average factoring period of 29 days after 26 days in the previous year.

GRENKE Bank also performed favourably in the reporting quarter. The deposit volume increased 11 percent to EUR 241.0 million after EUR 217.6 million at the end of fiscal year 2012, highlighting our success in this area. The volume of business start-up financing fell slightly by 8 percent but at EUR 1.0 million, it remained close to the level of the prior year in absolute terms. Various partnerships with development banks of the German States give us the opportunity to provide small and medium-sized companies access to development funds in order to finance business investments through lease financing. As part of a third collaboration with the NRW.Bank we were recently able to strengthen our commitment in this area once again.

Report on Financial Position and Net Assets

Selected information from the consolidated statement of financial position and the consolidated statement of cash flows

EURk	March 31, 2013	December 31, 2012
Current assets	1,152,074	1,020,928
thereof cash and cash equivalents	201,649	116,707
thereof lease receivables	712,486	688,141
Non-current assets	1,370,471	1,331,364
thereof lease receivables	1,225,234	1,185,787
Total assets	2,522,545	2,352,292
Current liabilities	856,767	758,164
thereof financial liabilities	734,313	639,199
Non-current liabilities	1,249,955	1,243,155
thereof financial liabilities	1,211,793	1,203,107
Equity	415,823	350,973
Equity ratio in percent	16.5	14.9
Total assets	2,522,545	2,352,292
Cash flow from operating activities	48,113	80,067
Net cash flow from operating activities	43,475	62,597
Cash flow from investing activities	–12,052	–39,333
Cash flow from financing activities	53,399	–10,752
Total cash flow	84,822	12,512

As per the reporting date of March 31, 2013, the GRENKE Consolidated Group's total assets rose 7 percent as compared to the start of the quarter. Equity increased disproportionately by 18 percent as a result of the appropriation to retained earnings and the successful capital increase carried out in February 2013 which led to net proceeds of EUR 53.7 million.

On February 21, 2013, we increased GRENKELEASING AG's share capital by EUR 1,298,554.84 from EUR 17,491,421.86 to EUR 18,789,976.70 by way of an accelerated book-building and by partially exercising the authorised capital. Within just a few hours, we were able to place 1,015,901 new no-par value bearer shares against cash contribution and by excluding shareholders' subscription rights at a price of EUR 53.50. The offer was heavily oversubscribed.

With the strengthening of our equity base, we have expanded our scope for the future growth of the GRENKE Consolidated Group. The equity ratio as per the reporting date had risen accordingly to 16.5 percent after amounting to 14.9 percent at the end of fiscal year 2012. When including the capital increase from February 2013, the equity ratio would have amounted to 17.2 percent at the end of fiscal year 2012. Thus the equity ratio was once again above our long-term target of a minimum of 16 percent.

Furthermore, cash and cash equivalents increased strongly in the course of the first quarter since we were able to successfully close an additional ABCP programme for the securitisation of French lease receivables by the end of the quarter as presented below. The high level of liquidity was mainly closing-date related. In the coming months we will reduce the volume again.

The largest single position onGRENKE ConsolidatedGroup's balance sheet continues to be lease receivables. As a result of our growth they rose 3 percent, net of repayments by our customers. Due to the construction of two new buildings in Baden-Baden and Strasbourg (France), property, plant, and equipment rose 3 percent in the first quarter to EUR 38.1 million after EUR 37.0 million as per December 31, 2012. Other intangible assets declined 4 percent from EUR 10.3 million to EUR 9.9 million as a result of scheduled amortisation.

In March 2013, we founded an additional so-called compartment for the securitisation of French lease receivables with a volume of EUR 133.3 million next to the four existing ABCP programmes as per the end of fiscal year 2012 with a total volume of EUR 400.0 million. The refinancing framework of all ABCP programmes was utilised at almost 54 percent. We also added two new promissory note loans and one credit facility with a volume of EUR 20.0 million each. We repaid in due time one bond with a volume of EUR 75 million and three bullet promissory note loans with a total volume of EUR 24 million. One credit facility expired with no prolongation. At the end of March 2013, NRW.BANK granted GRENKE BANK AG again a global loan in the amount of EUR 15 million for the provision of development loans.

Cash flow from operating activities in the first quarter amounted to EUR 48.1 million. The change in lease receivables led to cash outflows of EUR 63.8 million while the change in liabilities from the refinancing of lease receivables resulted in cash inflows of EUR 72.5 million. In the first quarter, the net cash flow from operating activities amounted to EUR 43.5 million after interest paid and received and taxes paid of EUR 4.4 million.

Cash flow from investing activities amounted to EUR –12.1 million in the reporting quarter and included mainly an outstanding payment in the amount of EUR 10.8 million for the acquisition of the former franchisee in Portugal. Total cash flow including cash flow from financing activities – which mainly reflects the proceeds of EUR 53.7 million from the cash capital increase – amounted to EUR 84.8 million in the reporting quarter.

Report on the Forecasts and Outlook

Report on Risks and Opportunities

The following risks and opportunities report relates to both the GRENKE Consolidated Group and its segments. The risks and opportunities described in the 2012 annual financial report are still relevant. Going forward, we continue to believe that the opportunities for our business development outweigh the usual risks associated with our business model.

In particular, demand for lease finance – measured in terms of the number of applications received – remains high. This allows us to continue to increase new business and, at the same time, generate attractive margins while maintaining our proven risk limitation. Additional locations, branches, and franchise partners and the penetration of new regional sales markets as well as the further diversification of our offering of financing solutions should contribute to our growth in the future.

A possible lack of willingness by the market in general to provide sufficient funds for refinancing does not constitute a material risk to our growth as the capital markets provide issuers of good standing with sufficient funds even in difficult market situations. Furthermore, access to banking deposits at GRENKE BANK AG also provides us with a highly attractive source of refinancing that we have recently utilised flexibly. Currently, we are tending toward a state of excess liquidity and will therefore rather reduce than expand our utilisation of refinancing instruments in the near future.

Risks to income development result particularly from increased losses in periods of recession. Losses generally fluctuate to a certain extent during the year. In addition, there is typically a time lag of roughly two years as compared to the underlying transactions, i.e. our new business.

The risk of rising interest rates continues to be of fundamental importance to the GRENKE Consolidated Group. The exposure to interest rate risks in connection with the refinancing of the lease receivables is only limited as this refinancing – if subject to a floating rate at all – is hedged using derivatives. Nevertheless, the risks from changes in interest rates and spreads can arise in new business. Therefore, the delaywithwhichwe pass on interestrate changes to customers can have a temporary impact on the profitability of the new business. Given the low interest rate policy of the international central banks which has been due to the unsolved risks in bank balance sheets, the weak economy, and high unemployment in many countries, we do not currently see any particular risks in this area.

Outlook

For the current fiscal year we expect an increase of between 13 and 16 percent in GRENKE Group's new business. A large contribution to this should come primarily from increasing the density of our existing network and penetrating new markets outside of Europe as well as the continued diversification of our product portfolio. We were able to successfully continue the growth trend of the fourth quarter of 2012 in the reporting quarter. GRENKE Group's new business grew 15 percent to EUR 275.6 million and was thus not only in the range of our expectations for the 2013 fiscal year, but was also considerably above our long-term target of 10 percent. Attractive and risk-adequate CM2 margins remain the focus. Our broad international presence enables us to take advantage of those markets for our growth in which we can achieve the appropriate margins for the assumed risks and thus secure the profitability of the GRENKE Consolidated Group.

In view of the growth in new business we will continue to work diligently in the reporting year on our regional expansion and on the diversification of our financing solutions. Here we will take advantage of the various opportunities offered in the various countries – both within and especially outside of Europe – in a targeted manner. Canada is on the agenda for the current reporting year following a promising start in Brazil and our first activities in Dubai. In 2013, the net interest income should again benefit first and foremost of the high growth of the previous years. The loss rate is expected to develop at the current level and within the normal range of fluctuations. Based on the assumption of high-margin new business, the progression of the contracts, and the resulting positive impact on earnings, we hold strong to our forecasts stated in the 2012 annual report: GRENKE Consolidated Group's net profit should noticeable improve and reach EUR 44 – 48 million.

Interim Consolidated Financial Statements

Consolidated Income Statement

	January 1, 2013	January 1, 2012
EURk	to March 31, 2013	to March 31, 2012
Interest and similar income from financing business	45,625	39,833
Expenses from interest on refinancing and deposit business	14,804	14,593
Net interest income	30,821	25,240
Settlement of claims and risk provision	10,885	10,600
Net interest income after settlement of claims and risk provision	19,936	14,640
Profit from insurance business	7,885	6,628
Profit from new business	10,157	8,404
Profit from disposals	914	1,385
Income from operating business	38,892	31,057
Staff costs	12,076	10,027
Depreciation and impairment	1,139	682
Selling and administrative expenses (not including staff costs)	8,859	6,997
Other operating expenses	1,336	1,109
Other operating income	751	848
Operating result	16,233	13,090
Expenses / income from fair value measurement	44	–20
Other interest income	90	134
Other interest expenses	312	447
Earnings before taxes	16,055	12,757
Income taxes	4,564	3,369
Net profit	11,491	9,388
Earnings per share (basic) in EUR	0.81	0.69
Earnings per share (diluted) in EUR	0.81	0.69
Average shares outstanding (basic)	14,124,323	13,684,099
Average shares outstanding (diluted)	14,124,323	13,684,099

Consolidated Statement of Comprehensive Income

	January 1, 2013	January 1, 2012
EURk	to March 31, 2013	to March 31, 2012
Net profit	11,491	9,388
Items that may be reclassified profit and loss in future periods
Appropriation to / reduction of hedging reserve (before taxes)	268	–178
Income taxes	–16	24
Appropriation to / reduction of hedging reserve (after taxes)	252	–154
Change in currency translation differences	–783	1,076
Other comprehensive income	–531	922
Total comprehensive income	10,960	10,310

Consolidated Statement of Financial Position

EURk	March 31, 2013	Dec. 31, 2012
Assets
Current assets
Cash and cash equivalents	201,649	116,707
Positive market values of derivative financial instruments	2,528	3,248
Lease receivables	712,486	688,141
Other current financial assets	84,242	84,903
Trade receivables	3,383	3,726
Lease assets for sale	9,031	8,588
Tax assets	5,485	4,838
Other current assets	133,270	110,777
Total current assets	1,152,074	1,020,928
Non-current assets
Lease receivables	1,225,234	1,185,787
Positive market values of derivative financial instruments	675	990
Other non-current financial assets	25,910	29,056
Property, plant, and equipment	38,135	37,035
Goodwill	48,568	48,815
Other intangible assets	9,869	10,328
Deferred tax assets	21,343	18,622
Other non-current assets	737	731
Total non-current assets	1,370,471	1,331,364
Total assets	2,522,545	2,352,292

Consolidated Statement of Financial Position

EURk	March 31, 2013	Dec. 31, 2012
Liabilities and equity
Liabilities
Current liabilities
Financial liabilities	734,313	639,199
Negative market values of derivative financial instruments	4,220	3,800
Trade payables	14,682	14,828
Tax liabilities	5,740	2,836
Deferred liabilities	5,505	5,146
Current provisions	2,203	2,251
Other current liabilities	9,323	19,824
Deferred lease payments	80,781	70,280
Total current liabilities	856,767	758,164
Non-current liabilities
Financial liabilities	1,211,793	1,203,107
Negative market values of derivative financial instruments	1,150	3,553
Deferred tax liabilities	34,599	33,987
Pensions	2,152	2,156
Non-current provisions	251	322
Other non-current liabilities	10	30
Total non-current liabilities	1,249,955	1,243,155
Equity
Share capital	18,790	17,491
Capital reserves	112,757	60,166
Retained earnings	282,303	270,812
Other components of equity	1,973	2,504
Total equity	415,823	350,973
Total liabilities and equity	2,522,545	2,352,292

Consolidated Statement of Cash Flows

		January 1, 2013	January 1, 2012
	EURk	to March 31, 2013	to March 31, 2012
	Earnings before taxes	16,055	12,757
	Non-cash items contained in net profit and reconciliation to cash flow from
	operating activities
+	Depreciation and impairment	1,139	682
– / +	Profit / loss from the disposal of property, plant, and equipment and intangible assets	0	–3
– / +	Net income from non-current financial assets	222	313
– / +	Non-cash changes in equity	–215	525
+ / –	Increase / decrease in deferred liabilities, provisions and pensions	236	–66
–	Additions to lease receivables	–243,545	–219,942
+	Payments by lessees	189,112	159,702
+	Disposals / reclassifications of lease receivables at residual carrying amounts	38,788	29,050
–	Interest and similar income from financing business	–45,625	–39,833
+ / –	Decrease / increase in other receivables from lessees	–7,251	–3,675
+ / –	Currency translation differences	4,728	–2,546
=	Change in lease receivables	–63,793	–77,244
+	Addition to liabilities from refinancing	434,199	220,343
–	Payment of annuities to refinancers	–84,872	–74,170
–	Disposal of liabilities from refinancing	–290,382	–145,088
+	Expenses from interest on refinancing and on deposit business	14,804	14,593
+ / –	Currency translation differences	–1,239	689
=	Change in refinancing liabilities	72,510	16,367
+ / –	Increase / decrease in liabilities from deposit business	31,652	2,705
– / +	Increase / decrease in loans to franchisees	570	298
	Changes in other assets / liabilities
– / +	Increase / decrease in other assets	–18,863	8,060
+ / –	Increase / decrease in deferred lease payments	10,501	4,881
+ / –	Increase / decrease in other liabilities	–1,901	5,423
=	Cash flow from operating activities	48,113	–25,302

continued on the next page

Consolidated Statement of Cash Flows

		January 1, 2013	January 1, 2012
	EURk	to March 31, 2013	to March 31, 2012
– / +	Income taxes paid / received	–4,416	–3,659
–	Interest paid	–312	–447
+	Interest received	90	134
=	Net cash flow from operating activities	43,475	–29,274
–	Payments for the acquisition of property, plant, and equipment and intangible assets	–1,372	–1,331
– / +	Payments / proceeds from acquisition of subsidiaries	–10,748	0
+	Proceeds from the sale of property, plant, and equipment and intangible assets	68	8
=	Cash flow from investing activities	–12,052	–1,323
+ / –	Borrowing / repayment of bank liabilities	–292	–334
–	Dividend payments	0	0
+	Proceeds from cash capital increase	53,691	0
=	Cash flow from financing activities	53,399	–334
	Cash funds at beginning of period
	Cash in hand and bank balances	116,707	104,234
–	Bank liabilities from overdrafts	–637	–482
=	Cash and cash equivalents at beginning of period	116,070	103,752
+ / –	Change due to currency translation	189	–116
=	Cash funds after currency translation	116,259	103,636
	Cash funds at end of period
	Cash in hand and bank balances	201,649	73,189
–	Bank liabilities from overdrafts	–568	–484
=	Cash and cash equivalents at end of period	201,081	72,705
	Change in cash and cash equivalents during the period (= total cash flow)	84,822	–30,931
	Net cash flow from operating activities	43,475	–29,274
+	Cash flow from investing activities	–12,052	–1,323
+	Cash flow from financing activities	53,399	–334
=	Total cash flow	84,822	–30,931

Consolidated Statement of Changes in Equity

			Retained		Reserve
	Share	Capital	earnings /	Hedging	for actuarial	Currency	Total
EURk	capital	reserves	Group net profit	reserve	gains / losses	translation	equity
Equity as per
January 1, 2013	17,491	60,166	270,812	–445	–494	3,443	350,973
Comprehensive
income			11,491	252		–783	10,960
Dividend payment in
2013 for 2012			0				0
Cash capital increase	1,299	52,591					53,890
Equity as per
March 31, 2013	18,790	112,757	282,303	–193	–494	2,660	415,823
Equity as per
January 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
in 2012 for 2011			0				0
Equity as per
March 31, 2012	17,491	60,166	248,001	–402	–105	2,816	327,967

Consolidated Segment Report

EURk	Leasing segment		Banking segment		Factoring segment		Total segments		Consolidation effects		Consolidated Group
January to March	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Operating segment income	35,884	28,799	2,638	1,915	370	343	38,892	31,057	0	0	38,892	31,057
Segment result	14,530	11,953	1,696	1,098	7	39	16,233	13,090	0	0	16,233	13,090
Reconciliation to consoli
dated financial statements
Operating result											16,233	13,090
Other financial income											–178	–333
Taxes											4,564	3,369
Net profit according to
consolidated income
statement											11,491	9,388
As per March 31
Segment assets	2,403,769	1,952,001	356,663	223,573	12,899	9,724	2,773,331	2,185,298	–277,614	–195,911	2,495,717	1,989,387
Reconciliation to consoli
dated financial statements
Tax assets											26,828	19,364
Total assets according to
consolidated statement of
financial position											2,522,545	2,008,751

Business Segments

GRENKE Consolidated Group's reporting on the development of its segments is aligned to the predominant organisational structure within the GRENKE Consolidated Group. Therefore, the operating segments are divided into Leasing, Banking, and Factoring in accordance with the management of the company's segments. A regional spit of the business activities is provided on a yearly basis as part of GRENKE's consolidated financial statements for each fiscal year. Separate financial information is available for the three operating segments. The result from intra-group risk provision resulting from the purchase of lease receivables by GRENKE BANK AG which had previously been reported as other comprehensive income in the segment reporting, has been reclassified to operating segment income. The previous year's quarter had been adjusted in an amount of EURk 790 accordingly. This had no impact on segment results.

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 disposal 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. In addition, GRENKE BANK AG supports the refinancing of GRENKE Consolidated Group's leasing business through intra-group purchases of lease receivables.

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 per March 31, 2013 meet 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 per December 31, 2012. The provisions on interimreporting set out in IAS34were applied accordingly.All interimfinancial 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, 2012. 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 in the following paragraph below. In addition, some of the positions in the statement of financial position were renamed for better clarity of the content of the position. For overview purposes, financial liabilities were summarised in one balance sheet position and split into current and non-current. A detailed presentation of this position is still provided in the notes. The unappropriated surplus which has been separately reported in the previous year is now included in retained earnings.

Mandatory New Accounting Standards

The first-time application of the amendment to IAS 19 "Employee Benefits" (revised in 2011, IAS 19R) published by the IASB in June 2011 had only a minor impact on GRENKELEASING AG's consolidated financial statements. The abolishment of the corridor method had no effect as it has not been applied in the GRENKE Consolidated Group and the actuarial gains and losses had already been recognised in other comprehensive income. The adoption of a uniform net interest component for interest from plan assets and the interest expense of plan obligations had only an immaterial effect on the consolidated financial statements since, within the GRENKE Consolidated Group, plan assets only exist for defined benefit obligations in Switzerland. The disclosure information will continue to be expanded by year-end. The amendments to termination benefit requirements had no influence on GRENKELEASING AG's consolidated financial statements.

In May 2011, the IASB published IFRS 13 "Fair Value Measurement" which compiles the regulations of fair value measurement previously found in individual IFRSs and replaces them with a uniform regulation. As only very few financial instruments of the GRENKE Consolidated Group were measured at fair value and the measurement and the former valuation was in accordance with the regulations of IFRS 13, there has been no impact on the consolidated financial statements. The amended pronouncements of IFRIC 20 "Stripping Costs in the Production Phase of a Surface Mine" had no effect on the consolidated financial statements of GRENKELEASING AG.

The amendments to IAS 32 and IFRS 7 which were published by the IASB in December 2011 also had no impact on the consolidated financial statements. These changes intend to clarify existing inconsistencies via amendments to the application guidelines. However, the existing basic regulations concerning the offsetting of financial instruments remain unchanged. The amendments also define increased disclosure requirements.

In June 2011, the IASB published amendments to IAS 1 "Presentation of Financial Statements" (July 1, 2012). GRENKELEASING AG applied these amendments in advance as per December 31, 2012. The presentation of other comprehensive income was changed to the extent that the items of other comprehensive income are presented dependent upon the possibility of whether or not they can be reclassified to profit and loss.

Use of Assumptions and Estimates

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

• Determination of impairments for non-performing lease receivables from terminated lease contracts or contracts 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

Lease receivables from terminated lease contracts or contracts in arrears are carried at nominal value less appropriate bad debt allowances. The amount of bad debt allowances is 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)

Impairment is assumed for categories 2 to 7 as the contracts have been terminated due to defaults in payment. The allowance rates range between 5% and 100%. Estimated residual values are used to determine the present value of lease receivables. Nonguaranteed 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 terms of the lease, residual values of additions up until the end of 2006, ranged between 11% and 15% 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% and 28.4% of historical cost depending upon the duration of the lease. Residual values of between 6.5% and 28.4% were used for additions from 2009. For additions after April 1, 2011, residual values of between 6.5% and 23.5% were applied and continue to be valid.

Proceeds are at best estimated based on statistical analyses. If the post-transaction recoverable amount is lower than expected (from sale and subsequent lease), the lease receivables are impaired. However, an increase in recoverable amount remains unrecognised.

Lease assets for sale aremeasured 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 per the end of the reporting period, the residual values used had amounted to between 3.6% and 16.7% of the historical cost (previous year: between 3.0% and 17.8%). If a sale is considered unlikely due to the condition of the asset, the asset is impaired in profit and loss.

Lease Receivables

EURk	March 31, 2013	March 31, 2012
Change in lease receivables from current contracts (performing lease receivables)
Balance at beginning of period	1,771,673	1,484,934
+ Change during the period	56,541	73,568
Lease receivables (current + non-current) from current contracts at end of period	1,828,214	1,558,502
Changes in lease receivables from terminated contracts/contracts in arrears
(non-performing lease receivables)
Gross receivables at beginning of period	198,623	168,393
– accumulated valuation allowances at beginning of period	–96,368	–84,573
= Non-performing lease receivables at beginning of period	102,255	83,820
+ Additions to gross receivables during the period	17,475	12,344
– Disposals of gross receivables during the period	7,831	8,108
+ Disposal of accumulated valuation allowances during the period	17,637	5,115
– Addition of accumulated valuation allowances during the period	20,030	5,677
Non-performing lease receivables at end of period	109,506	87,494
Lease receivables (carrying amount, current and non-current) at beginning of period	1,873,928	1,568,754
Lease receivables (carrying amount, current and non-current) at end of period	1,937,720	1,645,996

Financial Liabilities

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

EURk	March 31, 2013	Dec. 31, 2012
Financial liabilities
Current financial liabilities
Liabilities from the refinancing of the leasing business	625,827	521,883
ABS/ABCP related liabilities	186,530	168,739
Bonds, revolving facilities, debentures, and private placements	371,343	287,873
Committed development loans	10,769	18,645
Sales of receivables agreements	57,185	46,626
Current liabilities from deposit business	107,077	115,890
Current bank liabilities	1,409	1,426
thereof current account liabilities	568	637
Total current financial liabilities	734,313	639,199

EURk	March 31, 2013	Dec. 31, 2012
Non-current financial liabilities
Liabilities from the refinancing of the leasing business	1,076,476	1,107,911
ABS/ABCP related liabilities	218,823	182,009
Bonds, debentures, and private placements	771,924	873,778
Committed development loans	22,744	19,672
Sales of receivables agreements	62,985	32,452
Non-current liabilities from deposit business	133,942	93,477
Non-current bank liabilities	1,375	1,719
Total non-current financial liabilities	1,211,793	1,203,107
Total financial liabilities	1,946,106	1,842,306

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).ThecontractswithGOALSFINANCING2009LIMITEDallowtheGRENKEConsolidatedGroup to sell further leaseagreementsonarevolvingbasisforatotalofthreeyearsanduptoamaximumvolumeofEUR300,000k.Theinterestrateisvariableat three-monthEURIBORplus a spread ranging between 1.25%and 3.5%depending on the tranche. Three tranches of bondswith different ratings(riskclasses)wereissuedbytheSPE.Thesizeofthehighestratedtrancheisareflectionofthequalityoftheleasingportfolio and the internal risk management and directly impacts the costs of this type of financing. Of this bond, 76.5% (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: EUR24,200k) of the ABS bond. As a result, the ConsolidatedGroup received a cash inflowof only EUR135,800k. The carrying amount of the total liabilitywasEUR136,103k as perthe end of the reporting period (previous year:EUR135,995k).

ABCP Programmes

The GRENKELEASING AG Consolidated Group has several asset-backed commercial paper programmes (ABCPs) with a total volume of EUR 533,333k as per the end of the reporting period. An overview of the programmes as per the end of the reporting period is as follows:

		Lease receivables eligible	Programme volume in EURk	Programme volume in EURk
ABCP programme/SPE	Initiating bank	for refinancing	as per March 31, 2013	as per Dec. 31, 2012
		German and Austrian
Compass Variety Funding Limited	Portigon	lease receivables	40,000	40,000
		German and French
Kebnekaise Funding Limited	SEB AB	lease receivables	110,000	110,000
CORAL PURCHASING Limited	DZ-Bank	German lease receivables	150,000	150,000
Elektra Purchase No. 25 Limited/
(FCT GK2)	UniCredit	French lease receivables	100,000	100,000
Regency Assets Limited/
(FCT GK 3)	HSBC	French lease receivables	133,333	0
Total			533,333	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 per the reporting date, a total volume of EUR 286,759k (previous year: EUR 174,025k) at carrying amount was utilised.

TheABCPprogrammeCompassVarietyFunding Limited with Portigon AG (formerly 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, 2013. The programme commitment for the CORAL Purchasing Limited ABCP programme will run until September 3, 2013, while the programme commitment for the Elektra Purchase No. 25 ABCP programme will run until July 30, 2013.

To reflect the current legal conditions in France for 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"). "FCT GK 2" is refinanced through the issue of FCT notes which are 100% subscribed by SPE Elektra Purchase No. 25 Limited. A third compartment was founded on March 26, 2013 ("FCT GK 3"). This third compartment is refinanced through the issue of so-called FCT senior notes and FCT subordinated notes. The FCT senior notes are 100% subscribed by Regency Assets Limited and the FCT subordinated notes are 100% subscribed by Grenke Finance PLC. Within the FCT, the individual compartments are kept strictly separate from one another ("ring-fenced") and they all exclusively serve to finance French lease receivables. Both of the latter compartments are included in the scope of consolidation.

At per the reporting date, 53.77% of the refinancing framework of the ABCP programmes was utilised (previous year: 42.85%). The corresponding amount of receivables is assigned by way of collateral.

Sales of Receivables Agreements

Such agreements are currently in place with Stadtsparkasse Baden-Baden Gaggenau, Sparkasse Karlsruhe, UBS AG in Switzerland, the Commerzbank subsidiary BRE-Bank SA and DZ Bank Polska in Poland, and Norddeutsche Landesbank for receivables in the UK.

Bonds, Debentures, and Private Placements

On February 12, 2013, a new promissory note loan was issued with a volume of EUR 20,000k and a starting date as per March 1, 2013 and a term of 3 years until March 1, 2016. The loan will be redeemed by six identical semi-annual instalments starting September 1, 2013. The interest coupon amounts to 2.15%.

On March 28, 2013, a bullet promissory note loan was initiated with a term until January 5, 2017 and a volume of EUR 20,000k. The fixed interest rate amounts to 2.41%. In March 2013, three bullet promissory note loans with a total volume of EUR 24,000k and a bond with a volume of EUR 75,000k were repaid in due time.

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 opens 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 precisely this purpose. The loan was drawn down 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% 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. Here, the margin is 0.19%. Hence, the volume of EUR 15,000k of the first global loan is fully utilised. On March 22, 2013, the first draw-down in an amount of EUR 7,500k was redeemed as scheduled.

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, which concluded on February 18, 2010, by issuing another global loan totalling EUR 15,000k. This second loan was first drawn down in the amount of EUR 7,500k with a bullet maturity of three years on August 29, 2011. The interest rate relates to the 6-month Euribor plus a margin of 0.07%.

The second draw-down of EUR 7,500k took place on August 3, 2012 with a term of 4 years. The loan will be redeemed by semi-annual instalments. Hence, the second global loan is fully utilised up to the planned volume of EUR 15,000k. The interest rate over the total term amounts to 0.82%.

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, similar to the 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 self-employed 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. The loan was drawn down for the first time in the amount of EUR 2,500k on August 3, 2012 with a term of 4 years. The loan is redeemed retroactively on a yearly basis at fixed instalments. The interest rate over the total term amounts to 1.385%. The second draw-down of an additional EUR 2,500k took place on March 22, 2013 with a term of 3 years. The loan is redeemed retroactively on a yearly basis at fixed instalments. The interest rate over the total term amounts to 1.153%.

Investitionsbank Berlin

On June 6, 2012, GRENKELEASING AG and GRENKE BANK AG also entered into a cooperation agreement with Investitionsbank Berlin (IBB), the development bank of Berlin. 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 self-employed professionals located in Berlin with annual sales of up to EUR 500,000k.

GRENKE BANK AG was granted a global loan of EUR 5,000k by IBB for this purpose. The loan was drawn down for the first time in the amount of EUR 2,500k on April 2, 2013 with a term of 3 years. The loan will be redeemed retroactively on a yearly basis at fixed instalments. The interest rate over the total term amounts to 0.968%.

LfA Förderbank Bayern

On January 30, 2013, GRENKELEASING AG and GRENKE BANK AG have established a further cooperation agreement with LfA Förderbank Bayern by means of global loan in the amount of EUR 25,000k. Through this collaboration, small and medium-sized enterprises and self-employed professionals, that are located in Bavaria, can access development funds for investments via leasing. The 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 Bavaria. The refinancing of lease agreements takes place through the purchase of receivables by GRENKE BANK AG. As per 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.

L-Bank

Since the beginning of 2011, GRENKE BANK AG also offers the business start-up programme "ERP Gründungskredit Startgeld" of L-BANK, the State bank of Baden-Württemberg, next to the "KfW-Startgeld" of KfW-Mittelstandsbank. The loans are refinanced directly by the respective bank.

Revolving Credit Facility

In the context of five revolving credit facilities with a total volume of EUR 125,000k 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 a time.

The facility with HSBC with a volume of EUR 15,000k was newly concluded in the third quarter of 2012 and will run until June 2013. The facility with Nord LB with a volume of EUR 20,000k was newly concluded in the first quarter of 2013 and will run until March 2014. The facilities with SEB, Deutsche Bank, and DZ-Bank which have been in place for several years have a volume of EUR 30,000k each and have the following terms: SEB (until March 2014), Deutsche Bank (until September 2013), DZ-Bank (until October 2013). On February 28, 2013, the facility with Portigon AG expired with no prolongation.

As per March 31, 2013, the revolving credit facilities were utilised in the amount of EUR 75,000k (previous year: EUR 30,000k).

Money Market Trading

GRENKE FINANCE Plc., Dublin/Ireland has a non-committed money market facility of EUR 25,000k from Bayerische Landesbank. As per March 31, 2013, this credit line was utilised in the amount of EUR 25,000k (previous year: EUR 25,000k). A further money market facility in the amount of EUR 10,000k is in place with Norddeutsche Landesbank. As per March 31, 2013, this line was utilised in the amount of EUR 10,000k (previous year: EUR 5,000k). A further money market facility in the amount of EUR 10,000k is in place with Commerzbank AG. As per March 31, 2013, this line was utilised in the amount of EUR 5,000k (previous year: EUR 0k).

Commercial Papers

The GRENKE Consolidated Group has the opportunity to issue commercial paper of up to a total volume of EUR 250,000k with a term of between 1 and 364 days. As per March 31, 2013, the commercial paper programme was utilised in the amount of EUR 20,000k (previous year: EUR 3,000k).

Equity

On February 21, 2013, GRENKELEASING AG carried out a capital increase. The share capital was increased by EUR 1,298,554.84 to EUR 18,789,976.70 against cash contribution through the partial exercise of the authorised capital which was resolved upon by the Annual General Meeting on May 12, 2009. Shareholders' subscription rights were excluded. In total, 1,015,901 new ordinary no-par value bearer shares were issued at a price of EUR 53.50. The new shares have the same dividend entitlement as the existing shares. Hence, the Company's share capital is divided into 14,700,000 no-par value bearer shares.

Income Taxes

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

	Jan. 1 –	Jan. 1 –
EURk	March 31, 2013	March 31, 2012
Income taxes
Current tax expense	6,431	5,352
Deferred taxes	–1,867	–1,983
Income tax expense	4,564	3,369

Other Financial Obligations

As per March 31, 2013, there were obligations of EUR 287k (previous year: EUR 4,888k) for the extension of an office building.

Acquisitions

For further information regarding business combinations prior to fiscal year 2013 please refer to the notes to the Company's consolidated financial statements for the year ended December 31, 2012.

Dividend Payment

The resolution on the appropriation of GRENKELEASING AG's unappropriated surplus for fiscal year 2012 in the amount of EUR 18,151,428.39 will be adopted by the Annual General Meeting on May 7, 2013. The Board of Directors and the Supervisory Board will propose a dividend of EUR 0.80 per share. In addition, the Board of Directors proposes to the Annual General Meeting to appropriate EUR 6,300,000.00 to other retained earnings. Following the dividend distribution in an amount of EUR 11,760,000.00, the remaining amount of EUR 91,428.39 should 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 2011 as follows:

Unappropriated surplus for 2011	EUR 22,284,787.12
Distribution of a dividend of EUR 0.75 per share for a total of 13,684,099 shares	EUR 10,263,074.25
Appropriation to retained earnings	EUR 11,000,000.00
Profit carryforward (to new account)	EUR 1,021,712.87

The dividend was paid to the shareholders of GRENKELEASING AG on May 11, 2012.

Related Party Disclosures

The Supervisory Board of GRENKELEASING AG had concluded a phantom stock agreement with the Board of Directors' member Mr. Jörg Eicker.

Under this agreement, Mr. Eicker receives the entitlement to payment (tranche) equal to the increase in value of 30,000 shares in GRENKELEASING AG, in relation to a defined basic share price for fiscal years 2013, 2014, and 2015. 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 2012 was EUR 52.01. The maximum payment arising from this agreement is limited to EUR 600,000 for the three tranches. Under the programme, Mr. Eicker is required to invest the respective net amount paid plus a personal contribution of 25% of that amount in GRENKELEASING AG shares. The Company is entitled but not obligated to fully or partially provide the payment in shares rather than in cash for one or several tranches. In the latter case, the personal contribution is not applicable. The shares are subject to a vesting period of four years.

As per March 31, 2013, the value of the phantom stocks agreement granted totalled EUR 211k. As the entitlement for payment is not due until the end of 2013, a proportionate amount of EUR 53k has been expensed for the first three months of the year.

Employees

In the interim reporting period, the GRENKELEASING AG Consolidated Group had an average of 780 employees (previous year: 630), 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

April 25, 2013	Publication of Quarterly Financial Report as per March 31, 2013
May 7, 2013	Annual General Meeting (Kongress-Haus Baden-Baden)
July 25, 2013	Publication of Quarterly Financial Report as per June 30, 2013
October 24, 2013	Publication of Quarterly Financial Report as per September 30, 2013

Contact Information

Renate Hauss Corporate Communications

Phone: +49 7221 5007-204 Fax: +49 7221 5007-4218

E-mail: investor@grenke.de

Figures in this 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 5007-4218

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

E-mail: investor@grenke.de