DGAP-News

GRENKELEASING AG: GRENKELEASING increases profits by 13 % - Seite 3

achieve growth in new business in the GRENKE Group including franchise
partners above our long-term target of at least ten percent and to achieve
more than 20 % in fiscal year 2011.

Net profit is expected to increase considerably to reach between EUR 33
million and EUR 36 million in 2011, the highest profit in the company´s
history so far. This sharp rise in profits is due to the fact that the
impact of income from the high-margin new business concluded in previous
years is increasingly included in the income statement over the term of
these contracts. At the same time, the loss rate should tend to decrease
further as the economy improves.

As in 2010, higher income will be partly offset by increases in operating
and administration expenses, since we shall press ahead with our continuous
international expansion in 2011 too. The increase in expenses will,
however, be flatter than that in income, meaning that we expect profits to
grow strongly overall, ´ says Wolfgang Grenke, Chairman of the Board of
Directors of the company, describing the goals for 2011.

Further explanation:

´The new business in the fiscal year 2010 would not have been possible
without our very good standing in the capital markets. In combination with
our now proven refinancing from GRENKE BANK´s bank deposits, we have a
broad range of refinancing instruments. The equity ratio and the return on
equity remain the key target values. Our corporate management focuses on
achieving a sustainably high CM2 as prerequisite for an adequate ROE while
at the same time maintaining a solid equity base. We are even more
satisfied with this development given that income is still impacted by
losses - as is typical at the end of a recession - and at the same time we
have invested considerable sums in expanding our geographical presence.
This puts temporary pressure on us as a services company, as personnel and
operating expenses always increase ahead of future income.

The equity ratio was 17.2 % in fiscal year 2010, still above our
medium-term target of 16 % despite our rapid growth. This slight
overcapitalisation was deliberately brought about during the financial
market crisis owing to risk considerations. While the biggest risks from
the crisis now seem to have passed, we still see elevated overall risk
potential on capital markets in light of the numerous problems that have
not yet been overcome, such as the debt overload problem in various
countries. We are therefore continuing to base our balance sheet management
on a scenario with above-average capital market risks, ´ explains Dr. Uwe
Hack, Deputy Chairman of the Board of Directors of GRENKELEASING AG

The average number of employees in 2010 was 538, compared to 507 in 2009