DGAP-News

GRENKE AG: GRENKE provides an update on the status of Company-commissioned audits

DGAP-News: GRENKE AG / Key word(s): Miscellaneous GRENKE AG: GRENKE provides an update on the status of Company-commissioned audits 20.10.2020 / 13:29 The issuer is solely responsible for the content of this announcement. GRENKE provides an update on the status of Company-commissioned audits

• Franchise acquisitions audited so far can be deemed as positive
• Spot checks and proof of incoming lessee payments are used to validate lease contract portfolio
• No business model or business organisation anomalies found to date

Baden-Baden, October 20, 2020: GRENKE AG, a global financing partner for small and medium-sized enterprises, reports on the preliminary interim status of the audits commissioned by the Supervisory Board of GRENKE AG. The auditing company Warth & Klein Grant Thornton (WKGT) is reviewing the advantageousness and market conformity of the franchise company acquisitions, while KPMG AG Wirtschaftsprüfungsgesellschaft (KMPG) has significantly expanded its auditing activities within the scope of its role as the auditor. Priority is being given to validating the existence of cash and cash equivalents and the viability of the leasing business. Selected aspects concerning the regularity of the business operations and certain business processes are also being reviewed.

As the audit is still underway, interim reports from the auditing companies are not yet available - with the exception of the partial report on the proof of cash and cash equivalents based on bank account balances. Therefore, the Board of Directors and the Audit Committee of the Supervisory Board of GRENKE AG are providing a statement giving their assessment based on the initial interim findings and the ongoing status reports of the commissioned auditors.

"Over the past few weeks, we have been working intensively on the audits, and I am confident that all of the investigations will be completed as soon as possible. At the same time, we are looking ahead and seeing this situation as an opportunity. We are working on a vision for the future that, above all, will meet the higher expectations of governance and transparency of our rapidly growing company", commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG.