DGAP-News: GRENKELEASING AG: Successful start - New

DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous GRENKELEASING AG: Successful start - New business growth of 12.8% in the first quarter of 2014 02.04.2014 / 07:27 --------------------------------------------------------------------- Successful start - New business growth of 12.8% in the first quarter of 2014 - New business in the GRENKE Group in the first quarter of 2014 totalled EUR 310.8 million for a year-on-year increase of 12.8%. - The contribution margin (CM) 2 of GRENKE Group's new business reached EUR 50.0 million in the first quarter of 2014. The CM2 margin amounted to 18.7% (leasing segment) Baden-Baden, April 2, 2014: In the first quarter of 2014, 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 310.8 million (Q1-2013: EUR 275.6 million), and corresponded to growth of 12.8%. Hence, we are within our expectation for the full year with a range of 13 to 16%. In the first quarter of 2014, the contribution margin 2 of GRENKE Group's new business reached EUR 50.0 million (Q1-2013: EUR 47.5 million). The CM2 margin in the leasing business attained 18.7% in the first quarter of 2014 (Q1-2013: 19.6%). The CM1 margin (contribution margin 1 at acquisition values) amounted to 13.0% in the first quarter of 2014 and reached EUR 34.5 million (Q1-2013: EUR 33.2 million). These attractive contribution margins can be attributed to efficient sales management and a favourable interest rate climate. Thus, the trend of the previous quarters continued. For the first time in the history of the GRENKE Group, the international share of our new business came to 70% (Q1-2014: 70.2% compared to Q1-2013: 66.7%). In our key markets of France, the United Kingdom, and Italy, we were able to record positive growth in new business. In France, our largest market, the growth trend of the past year continued ahead undeterred. Spain developed very positively and grew 28.6%. In the other regions, which comprise the countries of Brazil, Dubai, Canada, and Turkey, we continue to act in a careful manner. This resulted in a decline in new business growth in those markets compared to the previous year, which reflected our intentions in terms of sales management. In the first quarter of 2014, the GRENKE Group recorded 83,975 lease applications (67,433 thereof were international), which generated 33,229 new lease contracts (25,727 thereof were international). The mean term per lease contract continued at a low level of EUR 7,958 and was almost unchanged compared to the previous year (Q1-2013: EUR 7,980). The GRENKE Group's (Leasing segment) conversion rate (applications into contracts) in the first quarter of 2014 totalled 40%. The conversion rate in our international markets was 38%, and was lower than in the German market (45%). The income margin on the factoring volume of EUR 43.5 million amounted to 2.35% (Q1-2013: 2.28%). This margin is based on the average period for a factoring transaction of around 35 days (Q1-2013: approx. 29 days). All amounts in EUR million <pre> New business Q1-2014 Q1-2013 % change GRENKE Group leasing + factoring + business 310.8 275.6 12.8 start-up financing including franchise partners - of which: Germany 92.6 91.7 1.0 - of which: International 218.2 183.9 18.6 </pre> <pre> New business Q1-2014 Q1-2013 % change GRENKE Group leasing 264.4 239.4 10.4 - of which: International 193.2 163.2 18.4 - of which: Franchise international 4.4 6.7 -35.1 - of which: Germany 66.9 69.5 -3.7 Western Europe* (without Germany) 90.2 79.8 13.1 Southern Europe* 62.1 50.8 22.4 Northern/Eastern Europe* 42.9 34.2 25.4 Other regions* 2.3 5.2 -55.4 </pre> <pre> New business Q1-2014 Q1-2013 % change GRENKE Group factoring 43.5 35.3 23.3 - of which: Germany 22.8 21.3 7.4 - of which: Franchise international 20.6 14.0 47.6 </pre> <pre> GRENKE Bank Q1-2014 Q1-2013 % change Deposits 252.7 241.0 4.9 Business start-up financing volume 2.9 1.0 201.1 </pre> Development of contribution margin 2 in EUR million <pre> Q1-2014 Q1-2013 % change GRENKE Group leasing 49.4 46.8 5.5 - of which: International 39.1 35.4 10.2 - of which: Franchise international 1.0 2.6 -61.9 - of which: Germany 9.3 8.8 6.6 Western Europe* (without Germany) 17.6 17.3 1.7 Southern Europe* 13.7 11.6 18.8 Northern/Eastern Europe* 8.2 7.0 17.3 Other regions* 0.5 2.2 -76.7 </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 "The international business continues to be our focus and the growth trends in our most important markets are intact. In the first quarter of 2014, the international share of our new business reached 70% for the first time in GRENKE Group's history and substantiated our strategy. With new business growth of 12.8% in the first quarter, we have embarked on a successful start in the year 2014 and are within our forecast range for the full year of 13 to 16%", commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, on the new business figures. "Regional growth and the diversification of our product range are integral components of our growth strategy. GRENKE Bank plays an important role in this regard by offering attractive products such as business start-up financing, among others. The volume of EUR 2.9 million achieved in the first quarter of 2014 demonstrates that the positive trend of 2013 has continued. In Germany, and now in three further European countries, GRENKE Factoring offers small and medium-sized customers additional financing alternatives. Our international factoring business grew 48%", stated Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG. On April 29, 2014 the company is to publish the Financial Report for the 1st Quarter 2014. 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://www.grenkeleasing.de, http://www.grenkebank.de, http://www.grenkefactoring.de The GRENKE Group The GRENKE Group is a broadly diversified provider of IT-based services in Small-Ticket-IT-Leasing, Factoring and Banking for small and medium-sized companies. In addition, the GRENKE Bank offers its classic online services also to private customers. 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 at http://www.grenke.de End of Corporate News --------------------------------------------------------------------- 02.04.2014 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 --------------------------------------------------------------------- 261073 02.04.2014