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GRENKELEASING AG: GRENKELEASING increases profits by 13 %

DGAP-News: GRENKELEASING AG / Key word(s): Final Results
GRENKELEASING AG: GRENKELEASING increases profits by 13 %

10.02.2011 / 07:08

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GRENKELEASING increases profits by 13 %

- 2010 net profit amounts to EUR 27.8 million, up 13.1 % on the previous
    year´s level of EUR 24.6 million

- Net interest income rises by 11.5 % to EUR 80.0 million

- Equity ratio of 17.2 % still above our target of 16 % - despite strong
    growth in new business of 39.4 % in 2010

- Proposed dividend of EUR 0.70 per share

- Profitability of new business remains higher than pre-crisis level of
    2008

- 2011: record profit of EUR 33 million to EUR 36 million targeted

Baden-Baden, Germany, February 10, 2011: For the GRENKE Group, the fiscal
year 2010 was entirely dominated by strong, profitable growth. GRENKE had
already been expanding its new business again since the second half of
2009.

Economic demand picked up more rapidly and more strongly from the beginning
of 2010 in Europe, particularly in Germany, than most economic analysts had
expected.

In anticipation of a rapid recovery of the European economy, the GRENKE
Group had not cut staff levels in crisis year 2008. On the other hand,
lower-margin new business had been reduced, a strategic decision which is
now proving its effectiveness. In 2010 the volume of new business at the
GRENKE Group (including franchise partners) - i.e. the total cost of newly
acquired leased assets plus the factoring volume - amounted to EUR 693.0
million (2009: EUR 497.1 million), corresponding to growth of 39.4 %. The
contribution margin 2 (CM2) fell to15.6 % (2009: 18.8 %) but is still
higher than the pre-crisis level.

The success of this management with a focus on contribution margins in line
with the market can be seen in the year-on-year increase of 8.7 % in
interest income, which amounted to EUR 124.5 million (previous year: EUR
114.6 million). In contrast, interest expense rose by just 4.1 %. This was
due to lower than average refinancing requirements on account of using
large cash holdings at the beginning of the year and our refinancing from
GRENKE BANK deposits, which led to an encouraging rise in net interest
income of 11.5 % to EUR 80.0 million (previous year: EUR 71.8 million).

Loan losses increased in the fiscal year 2010 as a result of the recession.
Having peaked in the first quarter of 2010, they trended downwards over the
rest of the year. Although the resulting earnings effect was still above
the long-term average, the increase of 8.1 % to EUR 33.7 million was much
lower than the increase in net interest income.