DGAP-Adhoc : GRENKE AG: GRENKE informs about -2-

discontinue this lending business. Mazars classifies the deficiencies as serious. This also applies to the bank's money 
laundering prevention, which Mazars assesses as not fully compliant with legal rules. However, Mazars has no evidence 
that GRENKE Bank has systematically and actively promoted money laundering. 
GRENKE takes the aforementioned critical points very seriously. Among other things, the company plans to quickly and 
comprehensively revise the instruments and processes for lending and money laundering prevention and to strengthen 
GRENKE Bank's Board of Directors. 
Calculation of risk provisions 
Another finding by Mazars concerns the methodology for calculating risk provisions in accordance with the IFRS 9 
accounting standard. Model and documentation weaknesses are identified. With regard to the model, Mazars finds, among 
other things, that GRENKE has not yet taken into account macroeconomic factors. GRENKE AG continues to use its 
model-based approaches derived from statistical methods, but has expanded them in line with the standard, without 
causing significant changes in the estimates of the amount of risk provisions. 
Findings on internal control system, internal audit and compliance 
The Mazars report also contains findings on missing or ineffective process-dependent controls in the internal control 
system as well as severe findings on the internal audit and compliance organization. The latter two largely coincide 
with the criticisms made by BaFin, about which GRENKE had provided detailed information in the letter from the Chairman 
of the Supervisory Board dated February 8, 2021, and which had led to the resignation of Board of Directors member Mark 
Kindermann. The Board of Directors has begun to significantly develop the internal control system on the basis of these 
findings. 
Earnings forecast for fiscal year 2020 
GRENKE expects an after-tax result in the upper double-digit million range for fiscal year 2020. The balance sheet 
equity ratio as of December 31, 2020 was around 16 percent. The company has net liquidity of EUR 1,290 million as of 
February 22, 2021. 
Outlook 
The time-consuming audits in particular were the primary cause for significant delays and the reason it has not yet 
been possible to set a corporate calendar for 2021. 
The audit opinion with regard to the consolidated financial statements is expected in the second quarter of 2021. KPMG 
will report the final results of the audit as of December 31, 2020 in the audit report and in the auditor's opinion. 
The Board of Directors remains in very close and constructive contact with the auditing company KPMG for the normal 
audit of the annual financial statements and with the other auditing companies in the context of the ongoing special 
audits. Isabel Rösler, who has been a member of the Board of Directors since January 2021, is responsible for 
coordination with BaFin and monitors the implementation of the measures decided on the basis of the audit results. On 
the Supervisory Board, Jens Rönnberg has assumed this role as interim Deputy Chairman of the Supervisory Board, who 
joined GRENKE in November 2019. 
Disclaimer: 
This document is a non-binding convenience translation of the German original. In the 
event of any conflict or inconsistency between the English translation and the German 
original, the German original shall prevail. 
For further information, please contact: 
GRENKE AG 
Anke Linnartz 
Neuer Markt 2 
76532 Baden-Baden 
Phone: [phone] 
Email: [e-mail] 
Website: www.grenke.com 
Press contact 
Stefan Wichmann 
Executive Communications Consulting 
Alfred-Bierwirth-Weg 2 
D-53572 Unkel (near Bonn) 
Phone: [phone] 
Email: [e-mail] 
Mobile: [phone] 
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Information and Explanation of the Issuer to this News: 
About GRENKE 
The GRENKE Group (GRENKE) is a global financing partner for small and medium-sized companies. As a one-stop shop for 
customers, GRENKE's products range from flexible small-ticket leasing and demand-driven bank products to convenient 
factoring. Fast and easy processing and personal contact with customers and partners are at the centre of GRENKE's 
activities. 
Founded in 1978 in Baden-Baden, the Company operates in 33 countries and employs more than 1,700 staff worldwide. 
GRENKE shares are listed in the SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30). 
Further information about GRENKE and its products is available at: www.grenke.com 
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26-Feb-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and 
Press Releases. 
Archive at www.dgap.de 
=---------------------------------------------------------------------------------------------------------------------- 
Language:     English 
Company:      GRENKE AG 
              Neuer Markt 2 
              76532 Baden-Baden 
              Germany 
Phone:        [phone] 
Fax:          [phone] 
E-mail:       [e-mail] 
Internet:     www.grenke.de 
ISIN:         DE000A161N30 
WKN:          A161N3 
Indices:      SDAX 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1171358 
 
End of Announcement  DGAP News Service 
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1171358 26-Feb-2021 CET/CEST

(END) Dow Jones Newswires

February 25, 2021 21:34 ET (02:34 GMT)