GRENKE STARTS YEAR WITH STRONG Q1 2024

EQS-News: GRENKE AG / Key word(s): Quarter Results/Quarterly / Interim
Statement
GRENKE STARTS YEAR WITH STRONG Q1 2024

15.05.2024 / 07:05 CET/CEST
The issuer is solely responsible for the content of this announcement.

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GRENKE STARTS YEAR WITH STRONG Q1 2024

  * Group earnings increased 25% to EUR 19.8 million (Q1 2023: EUR 15.9
    million)

  * Equity ratio of 18.8 % above self-set target of 16% despite share
    buyback

* 2024 forecast reaffirmed

Baden-Baden, May 15, 2024: GRENKE AG, a global financing partner for small
and medium-sized enterprises, increased its Group earnings by 25% to EUR
19.8 million in the first quarter of 2024 (Q1 2023: EUR 15.9 million). The
continued strong growth in new business in past quarters and the improvement
in the margin situation in 2023 contributed to this performance. The CM2
margin expanded to 16.8% in the first quarter of 2024 compared to 16.7% in
the first quarter of 2023. The cost income ratio (CIR) equalled 58.1% (Q1
2023: 57.1%), marking an improvement compared to the 2023 full-year average
(59.2%).

Dr Sebastian Hirsch, CEO of GRENKE AG: "We've had a strong start to the
year. We were able to build on the previous year's momentum and still have
plenty of potential. These are the best prerequisites for staying on track
to achieve our ambitions for the year as a whole."

Dr Martin Paal, designated CFO of GRENKE AG: "Including the additional
investments we have made in our digitalisation, our costs are in line with
our plan. At the same time, the growth in our interest income in absolute
terms is outpacing the increase in our interest expenses, which should
provide a further boost to our profitability in the quarters ahead."

Higher interest income

Interest income in the first quarter of 2024 increased year-on-year by EUR
23.6 million to a total of EUR 132.1 million (Q1 2023: EUR 108.5 million).
At the same time, the strong growth in new business led to higher
refinancing requirements while capital market interest rates remained high.
Consequently, interest expenses increased by EUR 21.6 million to EUR 46.1
million (Q1 2023: EUR 24.5 million). As a result, net interest income (the
balance of interest income and interest expenses) rose to EUR 86.1 million
in Q1 2024 (Q1 2023: EUR 84.0 million).

Expenses for settlement of claims and risk provision in the first quarter of
2024 were almost unchanged at EUR 26.7 million (Q1 2023: EUR 26.4 million).
The loss rate of 1.1% (Q1 2023: 1.2%) was below 1.5%, as forecast. The
increase in interest income led to an increase of 3.1% in net interest
income after settlement of claims and risk provisions to EUR 59.3 million
(Q1 2023: EUR 57.6 million).

The average number of employees (measured in full-time equivalents) in the
reporting quarter increased by 8.0% year-on-year to 2,156 (Q1 2023: 1,996
employees). Due to the growth-driven staff increase in 2023, staff costs
rose year-on-year to EUR 46.8 million (Q1 2023: EUR 41.3 million) but fell
in comparison to the prior quarter (Q4 2023: EUR 47.5 million).

Lease receivables develop in line with plan

Based on the growth in new business, lease receivables at the end of Q1 2024
were slightly higher year-on-year, rising to EUR 5.8 billion (Q1 2023: EUR
5.7 billion). New leasing business in the first quarter of 2024 increased
9.4% to EUR 669.8 million (Q1 2023: EUR 610.2 million).

Equity ratio continues to exceed self-set target

The liquidity position as of the March 31, 2024 reporting date totalled EUR
700.4 million (December 31, 2023: EUR 697.2 million). The equity ratio was
18.8% (Q1 2023: 20.8%) and continued to be above the Company's self-set
target of at least 16%, even after taking into account the ongoing share
buyback programme.

Outlook 2024

GRENKE remains by its forecast for new leasing business in the 2024
financial year in the range of EUR 3.0 billion to EUR 3.2 billion and Group
earnings of EUR 95 million to EUR 115 million. GRENKE is aiming for a slight
year-on-year increase in the CM2 margin in 2024. In the medium term, the
target is to achieve a CM2 margin of around 17%. The expectation for the
profit corridor in the 2024 financial year is based on the assumption that
the loss rate will remain below 1.5%. Taking into consideration the planned
investments in the digitalisation programme, GRENKE is aiming for a CIR of
less than 58% in 2024. Based on the anticipated development of the Group
earnings, GRENKE continues to expect a balance sheet equity ratio of over
16%.

The quarterly statement for the first quarter of 2024 can be accessed on the
Company's website under the heading " Reports & Presentations".

KEY FIGURES AT A GLANCE (IN EURm)

                                             Q1 2024  Q1 2023   in %
    New leasing business                     669.8    610.2    9.8
    CM2 margin of new leasing business in %  16.8     16.7     0.1 pp
    Group earnings                           19.8     15.9     24.9
    Earnings per share in EUR                0.22     0.19     15.8
    Cost-income ratio in %                   58.1     57.1     1.0 pp
    Equity ratio in %                        18.8     19.1     -0.3 pp
    Average no. of employees in              2,156    1,996    8.0
    full-time equivalents

Note: Rounding differences may occur between individual values and the
actual figure achieved in euros.

   FOR MORE INFORMATION, PLEASE CONTACT:
   Investor contact Investor Relations Team Neuer Markt 2         Press
   76532 Baden-Baden +49 7221 5007-204 investor@grenke.de         contact
                                                                  Stefan
                                                                  Wichmann
                                                                  Neuer
                                                                  Markt 2
                                                                  76532
                                                                  Baden-Ba-
                                                                  den +49
                                                                  171
                                                                  2020300
                                                                  presse@g
                                                                  renke.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 more than 30 countries
   and employs approximately 2,100 staff (measured in terms of
   full-time equivalents) worldwide. GRENKE shares are listed
   on the Frankfurt Stock Exchange (ISIN DE000A161N30).

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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
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1903273

End of News EQS News Service
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1903273 15.05.2024 CET/CEST