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03

Jan 2019

GRENKE reflects on a successful 2018 fiscal year and another year of strong new business development

GRENKE Group’s new business reached a new record high of EUR 2,979.8 million for a 21.7% rise over the previous year.

Full-year forecast for new business in Leasing and Factoring segments confirmed.

Baden-Baden, January 3, 2019: The GRENKE Group looks back on a year of successful new business development during the past 2018 fiscal year. The acquired volume at GRENKE Group Leasing, which is defined as the total acquisition costs of newly purchased leased assets, reached a sum of EUR 2,409.8 million for the year as a whole. This figure corresponds to new business growth of 22.0% in the Leasing segment over the prior year (EUR 1,975.7 million) and has reached the upper end of the 18 to 22% target range, which was raised in the course of the year. New business at GRENKE Group Factoring also performed well and reported a 19.0% year-on-year increase in total purchased receivables to EUR 526.9 million (EUR 442.8 million), which was within the forecasted growth range of 15 to
20%.

"The GRENKE Group can look back on a successful 2018 fiscal year, in which new business in all of our segments developed in line with our expectations. In the fourth quarter, we entered the Baltic States (Latvia) through the introduction of our leasing offers and started in Portugal with our factoring products. We also intensified our leasing presence by adding one new location each in Finland and Great Britain. By the end of the 2018 fiscal year, we were proudly serving our customers from a total of 144 locations in 32 countries. We also worked
successfully on our digital services. We introduced our eSignature online offer in five new countries in the fourth quarter, making it now available in 19 countries", said Antje Leminsky, Chair of the Board of Directors of GRENKE AG, in her comments on new business and the
strategic directions taken in the past fiscal year.

The profitability of the new business was also very satisfactory overall. The contribution margin 2 (CM2) in the Leasing segment amounted to EUR 420.7 million compared to EUR 353.0 million in the previous fiscal year. This figure corresponds to a CM2 margin of 17.5% versus 17.9% in the prior year. The CM1 margin (contribution margin 1 at acquisition cost) in the Leasing segment was 12.7% and reached a level of EUR 305.0 million (2017: 12.6% and EUR 248.8 million).

We achieved very solid, satisfactory growth in our three core leasing markets. The encouraging development in Germany in the first nine months of 2018 continued with an increase of 11.8% in the fourth quarter, resulting in year-on-year growth of 13.9% in full-year 2018. The other core markets of France (+ 18.4%) and Italy (+ 22.3%) also demonstrated strong growth in 2018.

"As a financing partner, we also strive to instil confidence based on our own rating. In November, the rating agency GBB-Rating confirmed GRENKE’s rating and kept its high rating for creditworthiness unchanged. The outlook was assessed as "stable". Our solid financial profile combined with high profitability and solid capital ratios provides the basis for our stable ratings and therefore our sustainable capital market capability. We strengthened our capital base further through the placement of a five-year bond with a volume of EUR 300 million at an interest rate of 1.5%. This bond issue together with our capital increase in June 2018 has laid a solid foundation for our continued growth strategy. Our contribution margins remained at a high level. Although the average CM2 margin declined somewhat year-on-year, this was fully in line with our expectations and planning as a result of the slightly higher average financing volumes in leasing and the growing importance of our direct sales," explains Sebastian Hirsch, member of the Board of Directors of GRENKE AG.

In 2018, the GRENKE Group received a total of 542,354 lease applications (455,959 thereof were international), which in turn resulted in 271,073 new lease contracts (223,080 thereof were international). At EUR 8,890 (2017: EUR 8,658), the mean term per lease contract remained at a level customary for our business. The conversion rate (applications into contracts) in the GRENKE Group (Leasing segment) was 50%. In our international markets, 49% of the applications were converted into contracts, which was lower than in the DACH region at 56%.

As previously mentioned, we were able to increase our new business volume in the Factoring segment by 19.0% to EUR 526.9 million. The gross margin on new business volume generated in Germany of EUR 172.9 million remained at a high level of 1.66% (2017: 1.70%). In our international markets, the gross margin on new business volume of EUR 354.0 million amounted to 1.30% (2017: 1.28%). This margin is based on the average period for a factoring transaction in Germany of approximately 27 days (2017: approx. 28 days) and about 39 days internationally (2017: approx. 38 days). In comparison to Germany, the international business contains a higher share of debt collection services, for which no default risk is assumed.

In the lending business for small and medium-sized companies (including business start-up financing), GRENKE Bank reported a strong increase of 40.8%. The volume in 2018 on an absolute basis amounted to EUR 43.1 million compared to EUR 30.7 million in the prior year. The deposit volume increased year-on- year by 37.3% to EUR 692.4 million compared to EUR 504.2 million in the prior year.

The Company will publish its 2018 Annual Report on February 7, 2019.

30

Oct 2018

Continuously good business development in the third quarter of 2018

  • Nine-month net profit increases by 24% to EUR 97.9 million (9M-2017: EUR 79.3 million)
  • Full-year 2018 Consolidated Group net profit target narrowed to an increase of EUR 126 to 132 million compared to the previous target of EUR 123 to 131 million
  • Strong equity base: equity ratio at 19.2% after the first nine months of 2018

Baden-Baden, October 30, 2018. The growth momentum of the GRENKE Consolidated Group continued in the third quarter of the current fiscal year. "With an increase in net profit of 24 percent from EUR 79.3 million to EUR 97.9 million in the first nine months of 2018, we are clearly on course. As a result, we narrow our full-year 2018 forecast and now expect Consolidated Group net profit to be in the range of EUR 126 million to EUR 132 million," said Antje Leminsky, Chair of the Board of Directors of GRENKE AG. As already reported on October 2, 2018, new business at the GRENKE Group grew by a total of 22% in the first nine months of 2018 compared to the same period of the previous year. With an increase of 23%, new business volume at GRENKE Group Leasing was at the upper end of the published fullyear forecast.

In the reporting quarter and the nine-month period, the profitable new business in the recent past was the main driver of net interest income and, thus, of the profitability of the Consolidated Group. Overall, interest and similar income from financing business increased by 14% in the first nine months versus a rise in expenses from interest on refinancing of only 8%. As a result, net interest income increased by 15% from EUR 182.2 million in the first nine months of the previous year to EUR 209.0 million. Net interest income after the settlement of claims and risk provision – which as per the beginning of 2018 under IFRS 9 includes not only losses that have already occurred but also expected losses – increased 13% to EUR 142.2 million after EUR 126.2 million in the same period of the previous year. The Consolidated Group’s loss rate, based on the overall risk provisioning in accordance with IFRS 9, amounted to 1.3% after 1.4% in the prior year period. The results from service business and new business in the first nine months increased by 21% and 24%, respectively. Overall, the Consolidated Group's income from operating business increased by 19% from EUR 220.0 million in the first nine months of the previous year to EUR 262.1 million.

Including the most recent cell divisions and acquisitions, the average number of employees at the GRENKE Consolidated Group increased by 19% to 1,429 employees compared to the same period in the prior year. Staff costs rose to the same extent and were 20% higher than in the prior-year period. The Consolidated Group’s second major expense item, selling and administrative expenses, increased by 22% as a result of the Consolidated Group’s growth and intensified sales and marketing activities.

The operating result exceeded the previous year’s figure of EUR 104.9 million by 12% and reached EUR 117.1 million. As mentioned above, net profit increased by 24% to EUR 97.9 million in the nine-month period compared to EUR 79.3 million in the first nine months of the previous year. This resulted in earnings per share of EUR 2.06 compared to EUR 1.74 in the nine-month period of the prior year.

The Consolidated Group’s balance sheet structure was very solid as per the September 30, 2018 reporting date. The equity ratio came to 19.2% as per September 30, 2018, which was above our long-term benchmark of 16%. "With our solid equity base, we are keeping a keen eye on one of our most important strategic goals – high financial strength – which remains the key to the GRENKE Group's further expansion, the continuation of our successful internationalisation strategy, the targeted expansion of our market share and the systematic development of our range of products and services", explained Sebastian Hirsch, Member of the Board of Directors of GRENKE AG.

02

Oct 2018

Growth dynamic in the first half-year continues in the third quarter of 2018

  • GRENKE Group Leasing’s new business grows 22.6% in the first nine months of 2018, placing it at the upper end of the 2018 full-year forecast (18% – 22%)
  • Contribution margin 2 of GRENKE Group Leasing rises by 20.2%
  • Two new locations open in Q3, for a total of nine new locations in 2018

Baden-Baden, October 2, 2018: The GRENKE Group continued to grow uninterrupted in the third quarter of 2018. The acquired volume at GRENKE Group Leasing – defined as the acquisition costs of newly purchased leased assets – increased 21.0% to EUR 559.7 million compared to EUR 462.4 million in the same quarter of the previous year. The Leasing segment’s new business volume totalled EUR 1,718.1 million in the first nine months of 2018 (prior-year period: EUR 1,401.9 million) and increased 22.6%. As in the first half of 2018, new business at GRENKE Group Factoring continued to benefit from the strong growth of its international franchise partners during the reporting period. Total purchased receivables increased by 19.1% to EUR 130.6 million in the third quarter (prior-year period: EUR 109.6 million) and by 18.4% to EUR 366.2 million in the nine-month period (prior-year period: EUR 309.3 million).

"We are very satisfied with the level of new business in the first nine months of 2018. We were able to achieve a high growth rate over all three quarters and are therefore confident that we will be able to increase new business at GRENKE Group Leasing in the current fiscal year in line with the 18 to 22 percent forecast range that was lifted in the middle of the year. With similar dynamics, we are driving forward the broadening and consolidation of our proximity to our customers. So far this year, we have opened nine new locations, with the two most recent locations opened in Denmark and in Austria", commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG.

The profitability of new business remained high. In the GRENKE Group’s Leasing segment, the contribution margin 2 (CM2) increased 20.2% to EUR 303.0 million in the first nine months of 2018, equating to a CM2 margin of 17.6%, following EUR 252.2 million in the same period of the prior year. In the first nine months of 2017, the CM2 margin equalled 18.0%. In the third quarter of 2018, the CM2 margin was 17.5% versus a level of 17.8% in the prior-year period. The Leasing segment’s CM1 margin (contribution margin 1 at acquisition values) was 12.7% reaching EUR 218.6 million in the first nine months of 2018, following 12.6% and EUR 176.2 million in the prior-year period (Q3-2018: 12.6% and EUR 70.3 million compared to 12.6% and EUR 58.4 million in the prior-year period).

In terms of the regional trend within our three core leasing markets, the volume of new business continued to rise in the reporting quarter, especially in Germany. The pleasing development in the first half of the year gained even more momentum in the third quarter increasing 18.1% for total growth in the first nine months of 2018 of 14.8% over the prior-year period. The other core markets of France (+ 20.2%) and Italy (+ 23.6%) also demonstrated strong growth in the nine-month period.

In the period from January to September 2018, the GRENKE Group recorded a total of 395,264 lease applications (330,012 thereof were international), which generated 195,708 new lease contracts (160,026 thereof were international). The mean acquisition value per lease contract remained at a level typical for the business and amounted to EUR 8,779 (9M- 2017: EUR 8,610). Overall, the conversion rate (applications into contracts) at the GRENKE Group (Leasing segment) was 50%. In our international markets, 48% of applications were converted into contracts, which was lower than the level of 55% in the DACH region.

"Our leasing business continues to show strong growth across all regions, both in terms of new business volume and contribution margins. At the same time, we are maintaining a stable level of conversion rates and mean contract values. This shows that we are neither taking any additional risks with regard to the creditworthiness of our customer base nor with regard to the individual contract volumes in order to maintain our growth," explains Sebastian Hirsch, member of the Board of Directors of GRENKE AG.

In the Factoring segment, we were able to increase the new business volume in the first nine months of the current fiscal year by 18.4% to EUR 366.2 million (9M-2017: EUR 309.3 million). The gross margin of the new business volume of EUR 128.6 million achieved in Germany amounted to 1.66% (9M 2017: 1.72%). The gross margin in our international markets on new business volume of EUR 237.6 million increased to 1.31% (prior-year period: 1.25%). This margin is based on the average period for a factoring transaction in Germany of approx. 27 days (9M-2017: approx. 28 days) and approx. 40 days on an international level (9M-2017: approx. 38 days).

In the first nine months of 2018, GRENKE Bank recorded a very strong year-on-year increase of 46.2% in the lending business for small and medium-sized enterprises (including business start-up financing and microcredit) to EUR 29.3 million after EUR 20.0 million in the corresponding prior year’s period. The deposit volume rose by 29.9% and amounted to EUR 624.8 million as per September 30, 2018, compared to EUR 481.0 million as per September 30, 2017.

27

Jul 2018

GRENKE’s earnings continue to grow in the first half of 2018

  • Half-year net profit increases 23.1% to EUR 63.4 million (6M-2017: EUR 51.5 million)
  • Very solid financing: Renewed confirmation of Company’s investment grade rating with a stable outlook: equity ratio rises to 18.8%
  • Full-year targets confirmed

Baden-Baden, July 27, 2018. The GRENKE Consolidated Group continued its dynamic development during the first six months of its 2018 anniversary year. Net profit rose by 23.1% to EUR 63.4 million compared to EUR 51.5 million in the same period of the prior year. The Company confirms its 2018 fiscal year forecast for net profit of EUR 123 to EUR 131 million. As already reported on July 3, 2018, the sharp increase in new business at GRENKE Group Leasing in the first half of the year prompted the Company to raise its growth target for new business in the Leasing segment from the previous range of 16 to 20 percent to 18 to 22 percent.

For Antje Leminsky, Chair of the Board of Directors of GRENKE AG, these results demonstrate that the Company is clearly on course: "Our tried and true business model is and remains highly profitable – and future proof. We are applying it to an ever-growing number of new product and service offers and deepening our international market penetration. Further digitisation along the entire value chain opens up additional opportunities for us".

In the reporting period, the profitable new business of the recent past continued to be the strongest driver of net interest income and, thus, the profitability of the Consolidated Group. The sum of interest and similar income from financing business increased by 14.0% versus a rise in expenses from interest on refinancing of just 11.3%. As a result, net interest income grew by 14.4% to EUR 137.2 million after EUR 119.9 million in the first half of the prior year. Net interest income after the settlement of claims and risk provision – which as per the beginning of 2018 under IFRS 9 includes not only losses that have already occurred but also expected losses – increased 13.4% to EUR 94.4 million compared to EUR 83.3 million in the same period of the prior year. The Consolidated Group’s loss rate, based on the overall risk provisioning in accordance with IFRS 9, amounted to 1.4% after 1.4% in the first quarter of 2018. The results from service business and new business increased 20.6% and 22.2%, respectively. Overall, the Consolidated Group’s income from operating business increased 19.3% from EUR 144.1 million in the previous year to EUR 171.9 million.

Including the most recent cell divisions and acquisitions, the average number of employees at the GRENKE Consolidated Group increased by 18.2% to 1,397 employees compared to last year’s period. Staff costs were 19.8% higher than the previous year’s level, and the Consolidated Group’s second major expense item, selling and administrative expenses, increased by 19.9% as a result of the Consolidated Group’s growth and intensified sales and marketing activities.

The operating result exceeded the previous year’s figure of EUR 68.7 million by 11.2%, reaching EUR 76.4 million. As mentioned, net profit increased in the first half-year by 23.1% to EUR 63.4 million compared to EUR 51.5 million in the prior year, resulting in earnings per share of EUR 1.35 in the first half of 2018 compared to EUR 1.13 in the first half of the prior year.

The Consolidated Group’s balance sheet structure was very solid as per the June 30, 2018 reporting date. In addition to higher retained earnings due to the net profit achieved in the reporting period, GRENKE AG’s equity was increased by roughly EUR 200 million against cash contribution in June 2018. Overall, the equity ratio grew from 16.7% as per the end of 2017 to 18.8%, visibly exceeding our long-term benchmark of 16%.

"We continue to pursue our international growth path, which requires solid financing. With our very successful capital increase in June, despite the rather difficult overall market environment, we have been able to strengthen our equity base by a total of almost EUR 200 million. In addition, GRENKE AG was recently given a top financial market rating once again with the award of the credit rating BBB+ and a stable outlook from the rating agency Standard & Poor’s. This rating gives us continued flexibility on the capital market, thereby providing us access to the funds needed for our future growth", explained Sebastian Hirsch, member of the Board of Directors of GRENKE AG.

03

Jul 2018

Growth momentum at the start of the year continues in the second quarter of 2018

  • GRENKE Group’s new business grows 23% in the first half of 2018
  • Higher number of cell divisions: five new locations in Q2, seven in total after six months
  • 2018 full-year forecast for new business growth in the Leasing segment raised to 18 – 22% (prior forecast 16 – 20%); Consolidated Group net profit forecast between EUR 123 – 131 million confirmed

Baden-Baden, July 3, 2018: After a strong start in the year, the GRENKE Group continued to grow in the second quarter of 2018. The acquired volume at GRENKE Group Leasing – defined as the total acquisition costs of newly purchased leased assets – increased 23.3% to EUR 609.2 million after EUR 493.9 million in the same quarter of the previous year. With total new leasing volume of EUR 1,158.4 million in the first six months of 2018 (prior-year period: EUR 939.5 million), the billion-euro threshold was exceeded for the first time in a sixmonth period by a significant amount and corresponds to an increase of 23.3%. New business at GRENKE Group Factoring has recently benefited in particular from the strong growth of the international franchise partners. Total purchased receivables increased by 16.4% to EUR 118.8 million in the quarter under review (prior-year period: EUR 102.1 million) and by 18.0% to EUR 235.6 million in the six-month period (prior-year period: EUR 199.7 million).

"We are very satisfied with the level of new business achieved in the first half of 2018. In the second quarter, we were able to maintain the outstanding growth of the prior quarter. So far this year, we have opened seven new locations and will continue to add more in the second half of the year. We are confident that we will be able to generate a sharper increase in GRENKE Group Leasing's new business in the current fiscal year than previously forecast. As a result, we now expect an increase in new business of between 18 and 22 percent versus our prior forecast of 16 to 20 percent and, at the same time, confirm our earnings forecast for the current 2018 fiscal year,” commented Antje Leminsky, Chair of the Board of Directors of GRENKE AG.

The profitability of new business remained high. In the GRENKE Group’s Leasing segment, the contribution margin 2 (CM2) increased in the 2018 six-month period by 20.8% to EUR 205.1 million compared to EUR 169.8 million in the same period of the prior-year. This level represents a constant 17.7% CM2 margin compared to the first quarter of the year. In the first half of 2017, the CM2 margin was 18.1%. The Leasing segment’s CM1 margin (contribution margin 1 at acquisition values) was 12.8% in the first half of 2018 compared to 12.5% in the prior-year period and reached EUR 148.3 million compared to EUR 117.8 million (Q2 2018: 12.9% and EUR 78.8 million).

Particularly noteworthy is the continuous high growth momentum seen in the comparatively new eSignature online offer. The number of leases signed using this innovative and fully digital distribution channel increased by 63.0% in the first half of 2018 (6M-2018: 29,375 contracts; 6M-2017: 18,018 contracts). Since its launch in 2015, our customers have chosen this option for a total of 88,113 contracts.

As in the first quarter, the regions that continued to stand out showing very strong growth in the reporting period within our three core leasing markets were France (+24.6%), as well as Italy (+25.3%). Our core market of Germany advanced significantly with a plus of 13.1% compared to the previous year. Among the other major international markets, Spain once again stood out with new business growth of 42.3%.

"In the second quarter, we extended our cooperation with Kreditanstalt für Wiederaufbau with a follow-up agreement for a new global loan and launched our eighth global loan with NRW.BANK. We also arranged a loan of EUR 100 million for the first time with the European Investment Bank. This will enable small and medium-sized enterprises (SMEs) to benefit from attractive lease conditions when making new business purchases. In total, more than 42,000 leases have been concluded so far within the scope of such collaborations," says Sebastian Hirsch, Member of the Board of Directors of GRENKE AG.

In the January through June period, the GRENKE Group recorded a total of 277,936 lease applications (233,545 thereof were international), which generated 135,087 new lease contracts (111,227 thereof were international). The mean acquisition value per lease contract was EUR 8,575 (6M-2017: EUR 8,525) and remained at a level typical for the business. The conversion rate (applications into contracts) at the GRENKE Group (Leasing segment) was 49%. The conversion rate in our international markets was 48%, which was lower than the level of 54% seen in the DACH region.

In our Factoring segment, we were able to increase the volume of new business in the first six months of the current fiscal year by 18.0% to EUR 235.6 million (6M-2017: EUR 199.7 million). The gross margin of the new business volume of EUR 85.5 million achieved in Germany remained at a high level of 1.62% (6M-2017: 1.71%). The gross margin in our international markets was at the prior year’s level of 1.20% on new business volume of EUR 150.1 million. This margin is based on the average period for a factoring transaction in Germany of roughly 27 days (6M-2017: approx. 27 days) and close to 40 days on an international level (6M-2017: approx. 36 days).

In the second quarter, GRENKE Bank's lending business for small and medium-sized enterprises (including business start-up financing) recorded an even higher increase compared to the beginning of the year. This business grew 42.9% in the first six months with a volume in absolute terms of EUR 18.7 million as per June 30, 2018 compared to EUR 13.1 million in the same prior-year period.

The deposit volume of GRENKE Bank increased by 25.3% and amounted to EUR 595.6 million as per June 30, 2018 compared to EUR 475.3 million as per the end of the first half of 2017.

13

Jun 2018

GRENKE AG resolves on cash capital increase

The Board of Directors of GRENKE AG (ISIN: DE000A161N30), with the approval of the Supervisory Board, today resolved on a capital increase against cash contribution with an issue volume of up to EUR 200 million under the exclusion of current shareholders' subscription rights (this corresponds to approx. 4.3% of the current share capital based on the Xetra closing price of June 12, 2018). The Company's share capital shall be increased through the partial use of the Company's authorised capital that was resolved on by the Annual General Meeting on May 03, 2018. The Company will issue new no-par value registered shares with dividend entitlement for the fiscal year 2018 and bearing rights equal to those of the existing outstanding shares of the Company. The new shares will be offered to qualified investors as defined by Section 2 (6) WpPG outside of the United States of America under Regulation S of the U.S. Securities Act of 1933, as amended in a private placement by way of an accelerated bookbuilding offering. The private placement will commence on June 13, 2018 and is expected to end on June 14, 2018. The Company reserves the right to close the order book at any time.

The placement price will be determined by the Board of Directors after conclusion of the accelerated bookbuilding offering and is expected to be announced on June 14, 2018.

The new shares shall be admitted to trading on the regulated market of the Frankfurt Stock Exchange without a prospectus with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard). The new shares will be included in the current listing as per June 20, 2018.

GRENKE AG intends to use the net proceeds from the capital increase to finance the Company’s further growth in its core markets and successful internationalisation strategy. In light of the envisaged strong growth, the capital increase is expected to support the very strong capital base and maintain the equity ratio in the long term over 16%.

13

Jun 2018

GRENKE AG resolves on cash capital increase

GRENKE AG resolves on cash capital increase with an issue volume of up to EUR 200 million

 

  • Net proceeds from the transaction will be used to finance further growth in GRENKE Groups core markets over the next years and to continue its successful internationalisation strategy
  • Focussed expansion of current market shares and systematic further development of product portfolio
  • In light of the envisaged strong growth, the capital increase is expected to support the very strong capital base and maintain the equity ratio in the long term above 16%

 

Baden-Baden, June 13, 2018

With the approval of the Supervisory Board, the Board of Directors of GRENKE AG (ISIN: DE000A161N30) today resolved on a capital increase against cash contribution with an issue volume of up to EUR 200 million under the exclusion of current shareholders’ subscription rights (this corresponds to approx. 4.3% of the Company’s share capital based on the Xetra closing price as of June 12, 2018). The Company's share capital shall be increased through the partial use of the Company's authorised capital that was resolved on by the Annual General Meeting on May 03, 2018. The Company will issue new no-par value registered shares with dividend entitlement for the ongoing 2018 fiscal year and bearing rights equal to those of the existing outstanding shares of the Company. The new shares will be offered exclusively to institutional investors in a private placement by way of an accelerated bookbuilding offering.

"In view of the extremely positive business development in the first months of the current fiscal year, we plan to use the net proceeds from the capital increase to strengthen our equity base. Our strong equity position is key for growth in our core markets over the next years and for the continuation of our successful internationalisation strategy. Moreover it enables the focussed expansion of our current market shares and a systematic further development of our product portfolio", explained Antje Leminsky, Chair of the Board of Directors of GRENKE AG. Sebastian Hirsch, member of the Board of Directors, added: "We have decided to carry out the capital increase in order to seize the continued dynamic and profitable growth opportunities. The capital increase ensures that our capital base will remain at a solid and sustainable level and allow us to continue focusing on an equity ratio in the long term above 16%."

The new shares shall be admitted to trading on the regulated market of the Frankfurt Stock Exchange without a prospectus with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard). The new shares will be included in the current listing as per June 20, 2018. GRENKE AG has agreed to a customary lock-up period of six months.

Founder and Deputy Chairman of the Supervisory Board, Wolfgang Grenke, supports the capital increase and, together with his family members, intends to participate in the capital increase by placing an order.

Deutsche Bank AG and HSBC Trinkaus & Burkhardt AG will be acting as joint global coordinators and joint bookrunners for the transaction.

03

May 2018

Annual General Meeting of GRENKE AG increases dividend by 21%

  • 79.5% of share capital represented at meeting
  • All Agenda Items adopted by a large majority
  • Dividend for the 2017 fiscal year increases from EUR 0.58 to EUR 0.70 per share
  • Wolfgang Grenke newly elected to the Supervisory Board

Baden-Baden, May 3, 2018: At today's Annual General Meeting of GRENKE AG, all Agenda Items for resolution were adopted by a large majority. Against the backdrop of the successful 2017 fiscal year, the shareholders present also supported the proposal for the appropriation of profits. Accordingly, the Annual General Meeting resolved to increase the dividend from EUR 0.58 in the previous year to EUR 0.70 per share. In doing so, the Company adhered to its dividend continuity of the past years by increasing its dividend for the eighth consecutive year. The remaining unappropriated surplus will be carried forward and provides the Company with additional equity to support its further growth.

The members of the Board of Directors and Supervisory Board were discharged for the 2017 fiscal year, and KPMG AG Wirtschaftsprüfungsgesellschaft was appointed as the auditor for the current fiscal year.

The end of the Annual General Meeting also marked the end of the terms of office of Supervisory Board members Prof Dr Ernst-Moritz Lipp (chair) and Gerhard E. Witt, who retired from the Supervisory Board. The Annual General Meeting sincerely thanked Mr Witt. Wolfgang Grenke, who after 40 very successful years in the Company, handed over the chair of the Board of Directors to Antje Leminsky on March 1, 2018, was elected as Mr Witt’s successor on the Supervisory Board. Prof Dr Ernst-Moritz Lipp was re-elected by the Annual General Meeting and also re-elected as chair of the Supervisory Board at the subsequent Supervisory Board meeting.

In addition, the shareholders approved the cancellation of existing authorised capital and the creation of new authorised capital together with the conclusion of a corporate agreement with GRENKE digital GmbH, which essentially regulates the profit transfer to GRENKE AG.

In its speech, the Board of Directors summarised for the shareholders and guests present the successes of the past fiscal year, in which the Company had set new records for new business and profits. The Board of Directors also shared its outlook for the current year, stating it was very confident overall. With sustained high growth in new business and net profit, further cell divisions and the entry into the market in the Baltic States, the targeted growth strategy is set to continue after 40 years of success.

Around 416 shareholders participated in the Annual General Meeting. The shareholder presence at the time of voting was at 79.5%.

The Company invited several pupils to its Annual General Meeting including the winners of Sparkasse Baden-Baden-Gaggenau’s stock exchange planning game and pupils from the Markgraf-Ludwig High School as part of the already existing campaign under the motto "Business Provides Education".

The Board of Directors

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