DGAP-News

GRENKE AG: GRENKE informs about exonerating statements and points of criticism of BaFin's special auditor

DGAP-News: GRENKE AG / Key word(s): Miscellaneous GRENKE AG: GRENKE informs about exonerating statements and points of criticism of BaFin's special auditor 26.02.2021 / 03:39 The issuer is solely responsible for the content of this announcement. GRENKE informs about exonerating statements and points of criticism of BaFin's special auditor

- Mazars' interim report commissioned by BaFin reveals no doubt as to the existence of the lease receivables; allegation of money laundering not confirmed

- Points of criticism of Mazars concern specifically the accounting treatment of the franchise companies, lack of disclosure of related parties, as well as deficiencies in money laundering prevention and parts of the customer lending business at GRENKE Bank

- Franchise companies will be fully consolidated for the first time

- Earnings after taxes for the 2020 fiscal year expected to be in the upper double-digit million range

- Net liquidity of EUR 1,290 million as of February 22, 2021

Baden-Baden, Germany, February 26, 2021: GRENKE AG today informs about the interim status of the ongoing special audit by the auditing firm Mazars, which has been mandated by the German Federal Financial Supervisory Authority (BaFin). The Board of Directors and the Supervisory Board of GRENKE AG had requested a respective written interim report from BaFin about the current status of the ongoing audit. BaFin has not yet made a final assessment of the findings raised by Mazars.

Summary

According to Mazars' interim report, no findings have been made that cast doubt on the legal validity and economic substance of the lease contracts with outstanding receivables of around EUR 5.6 billion. According to the report, the allegation of money laundering has also not been confirmed. Generally, there is no systematic need for goodwill impairments on acquired franchises. According to the report, the valuations are justifiable despite methodological deficiencies.