DGAP-News: GRENKE AG / Key word(s): Miscellaneous 
GRENKE AG: Enforcement procedure completed for the 2019 consolidated financial statements - Aspects underlying the 
errors identified already taken into account in the 2020 financial statements 
2021-07-27 / 18:48 
The issuer is solely responsible for the content of this announcement. 
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GRENKE: Enforcement procedure completed for the 2019 consolidated financial statements - Aspects underlying the errors 
identified already taken into account in the 2020 consolidated financial statements; no further adjustments required 
- BaFin identifies errors and expresses points of criticism in three areas regarding the 2019 consolidated financial 
statements: the accounting treatment of franchise companies, the determination of risk provisions in accordance with 
IFRS 9, and the goodwill reported for the subsidiaries in Portugal and Poland. 
- Areas identified were already known and retroactively adjusted for in the 2020 consolidated financial statements and 
taken into account in the current financial statements. 
- Based on GRENKE's assessment, there is no need for further adjustments to the 2020 consolidated financial statements 
or previous financial statements as a result of the declaratory decision. It is the Company's understanding that BaFin 
also sees no need for further adjustments. 
- Chief Financial Officer Dr Sebastian Hirsch: "Another step towards normality". 
Baden-Baden, July 27, 2021: GRENKE AG, a global financing partner for small and medium-sized enterprises, has received 
a declaratory decision on error findings from the German Federal Financial Supervisory Authority (BaFin) as part of the 
enforcement procedure for the audit of the 2019 consolidated financial statements. With the announcement of these error 
findings, the enforcement procedure is now concluded. As expected, BaFin's criticisms of GRENKE described in the notice 
dated July 16, 2021 relate to the accounting treatment of franchise companies, the determination of risk provisions in 
accordance with IFRS 9, and the goodwill reported for Portugal and Poland in the 2019 consolidated financial 
statements. 
Dr Sebastian Hirsch, Chief Financial Officer of GRENKE AG, comments: "For us, this decision, above all, marks the end 
of this intensive review. Because we have already anticipated all the key issues, the decision contains no surprises 
but is instead another important step towards normality." 
On July 22, 2021, BaFin ordered GRENKE AG to disclose the errors identified. The corresponding formal announcement was 
made on July 27, 2021 in the German Federal Gazette (www.bundesanzeiger.de) and via DGAP (www.dgap.de). 
GRENKE AG had already addressed the relevant issues that have now also been identified as errors in its announcements 
on February 26 and April 30 of this year and in the 2020 Annual Report. GRENKE AG had also adjusted for the items 
material for accounting purposes in its 2020 consolidated financial statements and retroactively for 2019 and is taking 
them into account in the current financial statements. 
In GRENKE's assessment, there is no further need to adjust the 2020 consolidated financial statements or earlier 
financial statements as a result of the declaratory decision. It is the understanding of the Company that BaFin also 
sees no further need to adjust financial statements based on the enforcement procedure that has been announced as 
completed. 
The details of the error findings in GRENKE AG's consolidated financial statements for the 2019 financial year are 
listed below. 
Accounting treatment of franchise companies 
According to BaFin's assessment, GRENKE AG failed to include twelve subsidiaries in its consolidated financial 
statements. In the assessment of BaFin, the non-inclusion of these companies was not corrected by retroactive 
adjustment in the consolidated financial statements as of December 31, 2019. 
In addition, BaFin's assessment stated that GRENKE AG failed to include a further eight subsidiaries in its 
consolidated financial statements as of the date of obtaining control. BaFin argues that GRENKE AG instead incorrectly 
accounted for business combinations at the time of the respective acquisition of the subsidiaries and only included the 
subsidiaries in the consolidated financial statements as of that date. As a result, goodwill was overstated by EUR 54.3 
million as of December 31, 2019, among other things. In the 2020 Annual Report, the Company's assets as of December 31, 
2019 were therefore adjusted and reported as a total of EUR 7.098 billion. As of December 31, 2020, these assets 
amounted to EUR 7.332 billion. 
As already disclosed in the 2020 Annual Report, the franchise companies were included in GRENKE AG's scope of 
consolidation retroactively from the start of business activities or as of the application of IFRS 10 and consolidated 
retroactively for 2019. This reduced the equity on the balance sheet by EUR 85.1 million as of January 1, 2019. 
Following the adjustment, GRENKE AG reported equity of approximately EUR 980 million as of January 1, 2019 and EUR 
1.143 billion as of December 31, 2019. 
Determination of risk provisioning according to IFRS 9 
Another point of criticism expressed by BaFin relates to the impairments of lease receivables and the related 
determination of risk provisioning. BaFin points out that, in its opinion, the lease receivables reported under current 
assets were reported too high in the total amount of EUR 22.7 million as of December 31, 2019 because payment 
expectations that were too high had been taken into account for the determination of the expected credit loss and thus 
for the risk provisioning. After the adjustment, lease receivables reported under current assets amount to a total of 
EUR 1.952 billion as of December 31, 2019. 
Furthermore, according to BaFin, lease receivables reported under non-current assets were overstated by EUR 1.1 million 
because, in BaFin's view, payment expectations that were too high had been taken into account in determining the 
expected credit loss and, consequently, the risk provisioning. In the opinion of BaFin, GRENKE AG had taken only past 
information into account when determining the expected credit losses and thus risk provisioning for lease receivables. 
After the adjustment, lease receivables reported under non-current assets amounted to EUR 3.823 billion as of the 
reporting date of December 31, 2019. 
GRENKE AG adapted the determination of risk provisioning in its 2020 Annual Report and adjusted the prior-year figures 
for 2019 accordingly in the consolidated financial statements as of December 31, 2020 and is taking them into account 
in the current financial statements. 
Goodwill of subsidiaries in Portugal and Poland 
According to BaFin, goodwill was overstated by EUR 6.2 million. 
Of this amount, EUR 4.2 million is attributable to the Polish subsidiary. BaFin states that, in its opinion, the 
related impairment test was not based on the planning that applied on the valuation date, but on overly optimistic 
revenue estimates and an excessively low cost growth factor. 
EUR 2.0 million of the amount is attributable to the subsidiary in Portugal. BaFin states that, in its opinion, a 
component of the related purchase price paid in that amount was not related to the acquisition of the subsidiary in 
Portugal in 2012 but instead served to settle a previously failed transaction between GRENKE AG and the seller of the 
Portuguese subsidiary. 
As previously announced, GRENKE AG recognised goodwill impairment on the business in Poland in the amount of EUR 4.2 
million as well as an adjustment of the purchase price allocation for the Portuguese franchise company in the amount of 
EUR 2.0 million retroactively for 2019 in the 2020 consolidated financial statements. 
In September 2020, BaFin assumed the audit of GRENKE AG's consolidated financial statements as of December 31, 2019 and 
the combined group management report and management report for financial year 2019 from the German Financial Reporting 
Enforcement Panel (FREP). This was assumed in addition to the special audit carried out by BaFin in accordance with 
Section 44 of the German Banking Act. 
For further information, please contact: 
GRENKE AG 
Team Investor Relations 
Neuer Markt 2 
76532 Baden-Baden 
Phone: +49 7221 5007-204 
Email: investor@grenke.de 
Website: www.grenke.com 
Press contact 
Stefan Wichmann 
Executive Communications Consulting 
Neuer Markt 2 
76532 Baden-Baden 
Mobile: +49 (0) 171 20 20 300 
Email: presse@grenke.de 
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 1,800 staff (full-time 
equivalents) worldwide. GRENKE shares are listed in the SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30). 
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2021-07-27 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
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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

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July 27, 2021 12:48 ET (16:48 GMT)