DGAP-News: GRENKELEASING AG: Excellent new business

DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous GRENKELEASING AG: Excellent new business development in the first nine months of 2014: Growth of 14.9% 02.10.2014 / 07:32 --------------------------------------------------------------------- Excellent new business development in the first nine months of 2014: Growth of 14.9% - GRENKE Group's new business amounted to EUR 978.8 million in the first nine months of 2014 - a rise of 14.9% compared to the prior year - The contribution margin (CM) 2 of GRENKE Group's new business reached EUR 160.3 million in the first nine months of 2014. The CM2 margin totalled 19.3% (Leasing segment) Baden-Baden, October 2, 2014: In the first nine months 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 978.8 million (9M-2013: EUR 851.8 million), corresponding to growth of 14.9%. In the third quarter, new business grew 16.5% over the comparable quarter of the previous year. We expect to achieve our target growth of 13 to 16% for the full year. The contribution margin 2 of GRENKE Group's new business in the first nine months of 2014 reached EUR 160.3 million (9M-2013: EUR 140.1 million), which represents a rise of 14.4%. The CM2 margin of the leasing business amounted to 19.3% (9M-2013: 19.1%) in the first nine months of 2014. The CM1 margin (contribution margin 1 at acquisition values) totalled 13.6% in the first nine months of 2014 and amounted to EUR 111.5 million (9M-2013: EUR 96.2 million). We continued to generate attractive contribution margins in the nine-month period as a result of our efficient sales management and the favourable interest rate environment. The international share of the GRENKE Group's new business amounted to 69.9% in the first nine months of 2014 compared to a total of 65.8% in the prior year. The development in Germany was subdued but was more than compensated for by the growth of the international markets. In France, our largest international market and meanwhile our second home market, we recorded growth of 24.0% in the nine month period. In our other key markets such as Italy (growth of 34.5%) and the United Kingdom (growth of 31.0%), growth continued uninterrupted. In the first nine months of 2014, the GRENKE Group recorded 234,011 lease applications (187,540 thereof were international), which generated 100,596 new lease contracts (77,793 thereof were international). All together, we now have more than 400,000 current leasing contracts in our portfolio. The mean term per lease contract was EUR 8,164 and was almost unchanged compared to the previous year (9M-2013: EUR 8,148). The GRENKE Group's (Leasing segment) conversion rate (applications into contracts) in the first nine months of 2014 was 43%. The conversion rate in our international markets was 41%, which was lower than the level achieved in the German market (49%). In the Factoring segment, we achieved a rise of 17.4% in our factoring volume. The income margin on factoring volume of EUR 149.2 million amounted to 2.13% (9M-2013: 2.34%). This margin is based on the average period for a factoring transaction of approximately 33 days (9M-2013: approximately 24 days). GRENKE Bank's business start-up financing developed very positively with a rise of 88.2% compared to the prior year and volume of EUR 8.4 million. All amounts in EUR million (previous year's figures have been adjusted) <pre> New business 9M-2014 9M-2013 % change GRENKE Group leasing + factoring + business 978.8 851.8 14.9 start-up financing including franchise partners - of which: Germany 294.6 291.5 1.1 - of which: International 684.2 560.3 22.1 </pre> <pre> New business 9M -2014 9M -2013 % change GRENKE Group leasing 821.3 720.3 14.0 - of which: International 597.4 486.8 22.7 - of which: Franchise international 13.9 16.5 -16.0 - of which: Germany 210.0 216.9 -3.2 Western Europe* (without Germany) 280.0 231.4 21.0 Southern Europe* 191.9 152.2 26.1 Northern/Eastern Europe* 130.8 107.1 22.2 Other regions* 8.5 12.7 -33.1 </pre> <pre> New business 9M -2014 9M -2013 % change GRENKE Group factoring 149.2 127.0 17.4 - of which: Germany 76.2 70.1 8.7 - of which: International 52.0 49.5 5.0 - of which: Franchise international 20.9 7.4 183.2 </pre> <pre> GRENKE Bank 9M -2014 9M -2013 % change Deposits 295.7 246.4 20.0 Business start-up financing volume 8.4 4.5 88.2 </pre> Development of contribution margin 2 in EUR million (previous year's figures have been adjusted) <pre> 9M -2014 9M -2013 % change GRENKE Group leasing 158.2 137.9 14.8 - of which: International 125.3 102.6 22.2 - of which: Franchise international 3.1 6.0 -48.7 - of which: Germany 29.8 29.3 1.8 Western Europe* (without Germany) 56.7 49.7 14.0 Southern Europe* 43.8 32.8 33.4 Northern/Eastern Europe* 26.2 21.1 24.2 Other regions* 1.7 4.9 -65.3 </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 "We are very pleased with the 14.9% growth in new business in the first nine months of the reporting year and are on track to reach our target range for the full year 2014 of 13 to 16%. In the nine-month period, we opened a new location in Germany and one in Switzerland (Bern). To increase our presence in existing markets, we are preparing to open additional new locations in the fourth quarter and enter the markets in Chile and Croatia," commented Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, with regard to the new business figures. "We can employ our wide range of refinancing instruments - including the potential to attract bank deposits - in a flexible manner. The 20.0% increase in GRENKE Bank's deposit volume to EUR 295.7 million underscores the bank's importance in the refinancing mix. For the past several weeks, GRENKE Bank has been offering interested investors fixed-term deposits in Swiss francs in addition to fixed-term deposits in euros. Both domestic as well as international customers - particularly our Swiss customers - can take advantage of this offer," explained Jörg Eicker, Chief Financial Officer (CFO) of GRENKELEASING AG. On October 28, 2014 the company is to publish the Financial Report for the 3rd Quarter and the First Nine Months 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 900 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 --------------------------------------------------------------------- 02.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 --------------------------------------------------------------------- 289964 02.10.2014