DGAP-News: GRENKELEASING AG: New business growth of 15.6%

DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous GRENKELEASING AG: New business growth of 15.6% in 2013 - at the upper end of the 13-16% forecast range 03.01.2014 / 07:16 --------------------------------------------------------------------- New business growth of 15.6% in 2013 - at the upper end of the 13-16% forecast range - New business in the GRENKE Group in 2013 totalled EUR 1,188.2 million for a year-on-year increase of 15.6% - The contribution margin (CM) 2 of GRENKE Group's new business reached EUR 193.2 million in 2013. The CM2 margin amounted to 19.0% (Leasing segment) - The Company considers a stock dividend Baden-Baden, January 3, 2014: In 2013, the new business volume of the GRENKE Group (including franchise partners) - i.e. the total of the acquisition costs of newly purchased lease assets, factoring volume, and business start-up financing - amounted to EUR 1,188.2 million (2012: EUR 1,027.6 million), corresponding to growth of 15.6%. Thus, we were at the upper end of the 13-16% forecast range. The contribution margin (CM) 2 of GRENKE Group's new business reached EUR 193.2 million in 2013 (previous year: EUR 177.9 million). The CM2 margin in the leasing business was 19.0% in 2013 in comparison to 19.5% in 2012. The attractive contribution margin can be attributed to efficient market entry and a favourable interest rate climate. International business contributed 66.3% to the GRENKE Group's new business (previous year: 65.7%). In Germany, we experienced very favourable growth of 11.3% which was a welcome development, especially in view of the level of this market's penetration. In Western Europe, we grew 13.7%. Both Switzerland, with 39.6%, and the Netherlands, with 21.6%, experienced a very positive development. In the other regions outside of Europe, which consist of our newly added countries of Brazil, Dubai, and Turkey, we are still in a phase of careful market observation. In these regions, new business has seen a slight decline. As part of our cell-division strategy, we have opened our fifth Swiss location in Geneva. In 2013, we have carried out a total of ten cell divisions and are now present at 25 locations in Germany and at 75 locations internationally. By concluding a franchise contract in Canada, we entered another attractive market in the fourth quarter of 2013 with locations in Montreal and Toronto. In 2013, the GRENKE Group recorded 296,800 lease applications (234,423 thereof were international), which generated 122,248 new lease contracts (91,845 thereof were international). The mean term per lease contract was approximately EUR 8,199 and declined slightly compared to the previous year (2012: EUR 8,357). In 2013, our conversion rate (applications into contracts) in the GRENKE Group (Leasing segment) was 41%. The conversion rate in our international markets was 39%, which was lower than in the German market (49%). These figures underscore our strategy of not making any concessions in our suitable risk approach on individual international markets. All amounts in EUR million (2012 figures adjusted) <pre> New business 2013 2012 % change GRENKE Group leasing + factoring + business 1,188.2 1,027.6 15.6 start-up financing including franchise partners - of which: Germany 400.7 352.7 13.6 - of which: International 787.6 674.9 16.7 </pre> <pre> New business 2013 2012 % change GRENKE Group leasing 1,002.3 898.6 11.5 - of which: International 684.7 609.7 12.3 - of which: Franchise international 22.3 23.5 -5.0 - of which: Germany 295.3 265.4 11.3 Western Europe* (without Germany) 319.5 281.0 13.7 Southern Europe* 220.8 195.4 13.0 Northern/Eastern Europe* 152.1 138.5 9.8 Other regions* 14.6 18.3 -20.1 </pre> *Regions: Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The Netherlands, Switzerland Southern Europe: Italy, Malta, Portugal, Slovenia, Spain Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK / Czech Republic, Hungary, Poland, Romania, Slovakia, Other regions: Brazil, Canada, Dubai, Turkey <pre> New business 2013 2012 % change GRENKE Group factoring 179.4 122.9 46.0 - of which: Germany 98.8 81.1 21.8 - of which: Franchise international 80.6 41.7 93.1 </pre> <pre> GRENKE Bank 2013 2012 % change Deposits 255.6 209.4 22.1 Business start-up financing volume 6.6 6.1 7.3 </pre> At 13.3%, the GRENKE Group's CM1 margin on leasing business (contribution margin 1 at acquisition values) was at an attractive level in 2013 and reached EUR 133.2 million (2012: EUR 120.8 million) due to the continued favourable environment for refinancing. The contribution margin 2 of GRENKE Group Leasing's new business reached EUR 190.2 million in 2013 (2012: EUR 175.5 million, previous year's figure adjusted). The CM2 margin in the leasing business was 19.0% in 2013 in comparison to 19.5% in 2012. In the course of internationalisation and to attain an even more efficient sales management, we modified the CM2 calculation in Q1 2013 and manage according to the individual contract costs for the term of the contract. The income margin on the factoring volume of EUR 179.4 million amounted to 2.3% (2012: 2.3%). This margin is based on the average period for a factoring transaction of around 36 days (2012: approx. 36 days). Development of contribution margin (CM) 2 in EUR million (2012 figures adjusted) <pre> 2013 2012 % change GRENKE Group leasing 190.2 175.5 8.4 - of which: International 142.4 129.7 9.8 - of which: Franchise international 7.4 7.0 6.2 - of which: Germany 40.4 38.9 3.9 Western Europe* (without Germany) 68.1 58.5 16.4 Southern Europe* 46.7 44.3 5.3 Northern/Eastern Europe* 29.7 28.1 5.5 Other regions* 5.4 5.7 -5.3 </pre> *Regions: Western Europe (without Germany): Austria, Belgium, France, Luxembourg, The Netherlands, Switzerland Southern Europe: Italy, Malta, Portugal, Slovenia, Spain Northern/Eastern Europe: Denmark, Finland, Ireland, Norway, Sweden, UK / Czech Republic, Hungary, Poland, Romania, Slovakia, Other regions: Brazil, Canada, Dubai, Turkey In view of the resolution to be taken by the Annual General Meeting on the appropriation of retained earnings of financial year 2013, the Board of Directors and the Supervisory Board are considering whether to give shareholders the option of receiving shares of the Company in whole or in part instead of a cash dividend. In this context, the Annual General Meeting will be brought forward to April 10, 2014 to permit the issue of new shares from the existing Authorised Capital. 'In the fourth quarter, we were able to successfully continue the growth trend seen in the previous quarters once again. With growth of 15.6% to EUR 1,188.2 million in 2013, we have reached our intended target and are at the upper end of our forecast range of 13-16%. Thus, our business growth continues to greatly exceed our long-term target rate of ten percent. For sustainable new business growth, we will continue to work diligently on our regional expansion and on diversifying our financial services', commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the new business figures. 'The Company's strategy of maintaining sustainable new business growth requires solid financial resources. In December, we were able to place a EUR 125 million bond on the capital markets with an interest coupon of 2.25% and a term of 5 years. Through the increase in the volume of deposits at GRENKE Bank, we demonstrate that the Bank is an important element in the diversification of our sources of refinancing', stated Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG. On February 7, 2014 the company is to publish the Annual Financial Report as per December 31, 2013. Should you have any queries, please contact: Renate Hauss Tel.: +49 7221 5007-204 Fax: +49 7221 5007-4218 E-mail: investor@grenke.de Internet: http://www.grenke.de, http://grenkeleasing.de, http://www.grenkebank.de, http://www.grenkefactoring.de The GRENKE Group The GRENKE Group is a broadly diversified provider of financial services for small and medium-sized companies and private customers. The range of services offered by the GRENKE Group covers small-ticket IT leasing and factoring and - through GRENKE Bank - traditional online banking services. The GRENKE Group is independent of vendors and banks and holds a leading market position in Europe in the field of small-ticket IT leasing for products such as PCs, notebooks, copiers, printers, or software of relatively low asset value. The GRENKE Group operates in 27 countries and employs more than 800 staff. GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN DE0005865901. Information on the GRENKE Group and its products is available on the Internet at http://www.grenke.de, http://www.grenkeleasing.de, http://www.grenkebank.de, and http://www.grenkefactoring.de. End of Corporate News --------------------------------------------------------------------- 03.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden Germany Phone: +49 (0)7221 50 07-204 Fax: +49 (0)7221 50 07-4218 E-mail: investor@grenke.de Internet: www.grenke.de ISIN: DE0005865901 WKN: 586590 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 246786 03.01.2014