GRENKE AG
DGAP-News: GRENKE AG
/ Key word(s): Miscellaneous
GRENKE generates new leasing business in the 2020 financial year equal to 71.2% of the previous year's level - GRENKE Group Leasing's new business in the 2020 financial year amounts to EUR 2,027.9 million, equal to 71.2% of the level in the 2019 financial year - GRENKE Group Leasing's new leasing business in Q4 2020 reaches EUR 426.7 million, equal to 56.3% of the level in Q4 2019 - Contribution margin 2 in Q4 2020 increases to 19.5% (Q4 2019: 17.8%) - Extension of hybrid bond (ISIN XS1262884171) in the amount of EUR 50 million Baden-Baden, Germany, January 5, 2021: The GRENKE Group, a global financing partner for small and medium-sized enterprises, generated new leasing business of EUR 2,027.9 million in the past 2020 financial year, despite the COVID-19 pandemic, thereby achieving 71.2% of the previous year's level (FY 2019: EUR 2,849.1 million). In Q4 2020, GRENKE Group Leasing generated new business of EUR 426.7 million. Leasing new business, defined as the total acquisition costs of all newly purchased leased assets, equalled 56.3% of the level in Q4 2019 and was thus in line with the target of approximately 60%, which had been communicated before the announcement of the second hard lockdown. "Despite a second hard lockdown, we met our fourth quarter forecast. The start of the COVID-19 vaccinations makes us confident that the restrictions will end soon", says Antje Leminsky, Chair of the Board of Directors of GRENKE AG, in her comments on the fourth quarter of 2020. "The extraordinary year 2020 demanded more patience and perseverance from us than ever before. Together with all GRENKE AG employees, we are mastering the challenges posed by COVID-19 as the SME sector needs us as a strong small-ticket financing partner - especially now as the coming months will prove to be a great challenge for many companies." Regional development of new leasing business Percentage contribution margin development As a result of further hard lockdowns due to the COVID-19 pandemic and the associated curtailment of macroeconomic activity and public life, contribution margins also decreased in nominal terms in line with GRENKE Group Leasing's new business volume in Q4 2020. Contribution margin 2 (CM2) of the leasing business amounted to EUR 83.3 million in the fourth quarter of the current financial year (Q4 2019: EUR 134.9 million). The CM2 margin increased to 19.5% (Q4 2019: 17.8%). The strong CM2 margin was made possible, above all, as a result of the consistent focus on the profitable small-ticket business. The mean acquisition value per lease contract decreased further to EUR 7,595 in Q4 2020 (Q4 2019: EUR 9,240). The lower mean value reflects the stronger demand for small-ticket financing solutions from small and medium-sized enterprises. Small-tickets are defined as leases with a volume of between EUR 500 and EUR 25,000. Contribution margin 1 (CM1) in the fourth quarter of 2020 reached EUR 56.0 million (Q4 2019: EUR 96.1 million), registering a decrease of 41.7%. The CM1 margin, however, improved to 13.1% (Q4 2019: 12.7%). The increase in the margin successfully cushioned the higher refinancing costs contained in the leasing conditions. Regional development of contribution margins The GRENKE Group received a total of 115,260 lease applications in the fourth quarter of 2020. Of these, 21,351 applications were made in the DACH region and 93,909 applications in international regions. At the Group level, 56,182 new lease contracts were concluded from these applications, corresponding to a conversion rate of 49%. Development of factoring business Development of GRENKE Bank "During the COVID-19 crisis, we clearly focused on profitable new business. The very good CM2 margins in all our markets confirm that this strategy based on risk selection and diversification has been successful. Therefore, as long as the corona crisis continues, we will maintain this focus of our business", says Sebastian Hirsch, Chief Financial Officer of GRENKE AG, in his comments on business development. "At the same time, we have sufficient liquidity to start the new year. By extending our first hybrid bond, we are conserving liquidity and also creating the basis for a sustainably solid capital base." Overview of new business development (in EUR millions)
Note: Rounding differences may occur
*Regions: DACH: Germany, Austria, Switzerland For more information, please contact:
GRENKE AG
Press contact 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 Group 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 on GRENKE and its products is available at www.grenke.com.
05.01.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | GRENKE AG |
| Neuer Markt 2 | |
| 76532 Baden-Baden | |
| Germany | |
| Phone: | +49 (0)7221 50 07-204 |
| Fax: | +49 (0)7221 50 07-4218 |
| E-mail: | investor@grenke.de |
| 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: | 1158419 |
| End of News | DGAP News Service |
1158419 05.01.2021
