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GRENKELEASING®

GRENKELEASING AG GROUPTHREE-MONTH’S REPORT 2007REPORTING PERIOD: JANUARY 1, 2007 TO MARCH 31, 2007

Global Reports LLC

CONTENTS

Key Figures 03

Letter to the Shareholders from the Board of Directors 04

Expansion in Europe 07

The GRENKELEASING Franchise System 08

The GRENKEFACTORING GmbH 09

Risk Categories 10

Explanation of the Key Figures 11

Overview of the Group 13

GRENKE Group Locations in Europe 14

The Board of Directors of GRENKELEASING AG 15

The Supervisory Board of GRENKELEASING AG 16

Directors’ Holdings as per March 31, 2007 17

Consolidated Income Statement for the Period from January 1, 2007 to March 31, 2007 18

Consolidated Balance Sheet as of March 31, 2007 19

Consolidated Cash Flow Statement for the Period from January 1, 2007 to March 31, 2007 20

Statements of Changes in Consolidated Equity 22

Segment Reporting as of March 31, 2007 23

Statement of Recognized Income and Expense 24

Selected Explanatory Notes 25

Dates 2007 30

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KEY FIGURES

* Costs of new lease contracts (incl. currency adjustment) and factoring volume.** See explanations on pages 11–12.*** Dividend for fiscal year 2006 will be proposed to the shareholders' meeting on May 8, 2007.**** FTEs excluding directors.

Jan. 1. - Mar. 31, Change Jan. 1. - Mar. 31, Unit

2007 2006

New business* of the EURk

New business GRENKE Group Leasing Division excl. Factoring EURk

Contribution margin 2 GRENKE Group Leasing Division** EURk

New business GRENKE Group International incl. Franchise Partners EURk

New business GRENKE Group Germany incl. Franchise Partners EURk

New business Franchise Partners EURk

Factoring volume (Germany) EURk

Number of new contracts GRENKE Group Leasing Division Units

Number of new contracts GRENKE Group Leasing Division without projects Units

Key figures of the GRENKELEASING AG Group

Net interest income from leasing business EURk

Expenses from settlement of claims EURk

Profit from insurance business EURk

Profit from new business EURk

Profit from disposals EURk

(income exceeding the calculated residual value)

Result from exchange rate difference EURk

Other operating income EURk

Costs of new contracts EURk

Costs of current contracts EURk

Project costs and basic distribution costs EURk

Management costs EURk

Other costs EURk

Amortization EURk

EBIT (Profit from ordinary operations) EURk

Other interest EURk

Expenses/Income from the fair value measurement EURk

EBT (Net profit for the period before taxes) EURk

Net profit (consolidated pursuant to IFRS) EURk

Earnings per share (IFRS) EUR

Dividend EUR

Embedded Value of the lease portfolio (incl. Equity before taxes)** EURm

Embedded Value of the lease portfolio (incl. Equity after taxes)** EURm

Cost/Income Ratio** %

Return on equity (RoE) after taxes** %

Average number of employees**** Persons

Key figures of the GRENKELEASING Group Leasing Division

Share of IT products in the lease portfolio** %

Share of corporate customers in the lease portfolio** %

Mean acquisition value** EURk

Mean term of contract Month

Volume of leased assets** EURm

Volume of current contracts Units

123,155 7% 115,216

112,688 -2% 115,216

16,079 2% 15,789

47,798 19% 40,308

75,357 1% 74,909

23,168 349% 5,162

10,468 -- --

14,645 -3% 15,166

13,081 -8% 14,293

15,387 -1% 15,475

4,181 15% 3,633

4,092 4% 3,933

4,806 11% 4,348

792 25% 635

34 187% -39

245 18% 208

3,067 -7% 3,301

1,083 9% 991

3,018 31% 2,306

2,038 7% 1,909

574 34% 428

0 -- 0

11,395 -5% 11,992

-10 71% -34

-2 -101% 134

11,383 -6% 12,092

7,650 2% 7,504

0.56 2% 0.55

0.55*** 10% 0.50

300 11% 270

265 12% 237

46.2 8% 42.9

14.6 -11% 16.3

404 8% 375

88 1% 87

100 0% 100

7.7 1% 7.6

45 -2% 46

1,403 12% 1,251

189,261 10% 172,641

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GRENKELEASING AG GROUP THREE-MONTH’S REPORT 2007

REPORTING PERIOD: JANUARY 1, 2007 TO MARCH 31, 2007

LETTER TO THE SHAREHOLDERS FROMTHE BOARD OF DIRECTORS

Dear Shareholders,

Ladies and Gentlemen,

In the first quarter of 2007, the GRENKE Group (incl. franchise partners) generated a volume of new

business – i.e. the sum total of acquisition costs of newly purchased leasing assets and factoring

volume – amounting to EUR 123.2m (Q1-2006: EUR 115.2m). Compared with an exceptionally strong

quarter a year earlier, the level of growth of new business generated, amounting to 7 % year-on-

year, is encouraging. The main growth drivers were the ongoing good development of the foreign

markets and the positive expansion of the factoring business in Germany. In the first quarter (as

had already been the case in the third quarter of the previous year), our business in Germany was

considerably impacted by the discussion surrounding taxes being imposed on leasing instalments

within the scope of the tax reform.

Growth of the international business of the GRENKE Group* was up by 19 % year-on-year and contributed

a share of 39 % (previous year: 35 %) to the new business contracted by the GRENKE Group*.

Encouraging factors were the very positive development in France and the fact that the

international business is meanwhile being supported by a total of five countries, with each

expected to report a volume of new business in excess of EUR 10m for the year as a whole.

Due to personnel-related bottlenecks in Switzerland, new business in that country declined.

In order to improve the transparency of our reporting, we have been publishing contribution margin

2 figures as of the six month’s report 2006. This creates a better understanding of the correlations

between individual earnings components and reflects the growing importance of earnings other

than net interest income. We have extended our contribution margin to include the expected profit

from insurance business and disposals as well as all personnel expenses not related to sales, and

other operating expenses.

The development of this primary controlling measure is encouraging. It reflects the overall

profitability of our new business and has improved, both in absolute and relative terms compared

with the volume of new leasing business, in a market that remains impacted by pressure on margins.

This shows that in terms of our control via contribution margin 2, we are on the right track to

ongoing, profitable growth.

At 29%, the growth of contribution margin 2 outperformed international growth of new business,

increasing in all countries year-on-year.

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The CM1 margin of the leasing business of the GRENKE Group* (contribution margin 1 at acquisition

value) once again exceeded our target margin of 10% for the first quarter of 2007, reaching a value

of EUR 11.4m (Q1-2006: EUR 12m) for Q1 2007. The corresponding CM 2 reached a value of EUR

16.1m and was up by 2 % year-on-year. The CM 2 reflects the declining volume of new business in

Germany, yet on the whole, the rising profitability of our new business is discernible.

The product development strategy through ongoing good development of our factoring business in

Germany is also starting to bear fruit. The margin (turnover/factoring volume) in relation to the

factoring volume of EUR 10.5m amounts to 2.3%.

The result of the GRENKELEASING AG group developed according to plan. Earnings after taxes

increased by 2% to EUR 7.7m in the first quarter of 2007 (Q1-2006: EUR 7.5m). Earnings per share

rose from EUR 0.55 to EUR 0.56 in the first quarter of 2007. Consolidated earnings before interest

and taxes (EBIT) amounted to EUR 11.4m in the first quarter of 2007 (2006: EUR 12m).

The expansion of our international business not only led to a broader basis of successful national

companies, but also to a lower group tax rate.

As expected, net interest income changed little compared with the prior-year quarter, with the

other components of income increasing as planned. The settlement of losses also developed

according to plan. The expansion of our international sales activities in 2006 gave rise to a

scheduled increase in personnel expenses and operating expenses compared with the prior-year

quarter. The cost-income ratio rose correspondingly. At 46.2%, it remained very competitive in the

first quarter of 2007.

The result was generated by 404 employees, compared with 375 in the first quarter of 2006 (full-time

equivalents excluding directors). 62 employees are active in franchise operations (Q1-2006: 46).

In the first quarter of 2007, the GRENKE Group* recorded 30,039 leasing inquiries (ex Germany

13,949) and of which 14,645 new leasing contracts (ex Germany 6,488) were generated. The

average value per contract concluded came to approx. EUR 7,695 and is thus slightly higher than in

the previous year (2006: EUR 7,597).

The development of our European markets outside Germany shows that the strategy of a pan-European

approach is the correct one to follow.

The GRENKE Group* is now active in seventeen European countries. As part of our cell division

strategy, the branch office in Toulouse, France, was opened in February. GRENKE LOCATION SAS

therefore now has seven locations throughout France.

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Another milestone was reached in April with the signing of the franchise agreement with

GRENKELEASING in Romania. As well as in Romania, GRENKELEASING has a franchise system placed

in the UK, Poland, Norway, Hungary as well as in Germany in the field of car leasing and factoring.

The franchise strategy has proven to be an excellent way of tapping new markets quickly,

sustainably and profitably.

The European Information Technology Observatory’s (EITO) latest study suggests that the market

for information technology and telecommunications (ITC) in the EU will grow by 2.9% to EUR 668b

this year. Based on its new survey from April, the German Association for Information Technology,

Telecommunications and New Media (BITKOM) has confirmed its growth forecast for the German ITC

market, including digital consumer electronics, of 2% to EUR 149.1b in 2007, highlighting that we

continue to operate in a market with growth opportunities and are well positioned to do so.

The German Leasing Association has the following to say on investment forecasts for 2007: “Leasing

companies could potentially generate new business growth with movable assets in 2007. The

German Leasing Association predicts that the volume of the leasing market will grow by at least 5%

compared with the prior year. The corporate tax reform scheduled for 2008 poses a potential

forecast risk for investment and leasing development, however. Based on current discussions, this

reform includes elements that could negatively affect companies’ willingness to invest as well as the

business of leasing companies in 2007.” This is reflected in our new business development in both

the first quarter of 2007 and the third quarter of the prior year. In 2007, we expect new business

growth of approx. 10% in the GRENKE Group*. We anticipate that GRENKELEASING AG group profit in

2007 will be on a par with the prior year as we will continue to push forward our successful strategy

of further developing new markets and products.

Baden-Baden, Germany, April 2007

Wolfgang Grenke

CEO

*incl. franchise partners



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EXPANSION IN EUROPE



We have steadily expanded our market share and presence throughout Europe thanks to our European expansion

strategy. Our business model has proven successful and is well established in Europe.

Shares in New Business of the GRENKE Group as of March 31, 2007

* Car leasing, factoring

FR CH IT E Other GB GRENKE Groupcountries** (franchise partners) International*

* incl. franchise partners** Belgium, Denmark, Ireland, Netherlands, Austria, Sweden, Czech Republic

Growth Rates Leasing Division Q1-2007(in % compared to Q1-2006)

300%

20%

0%

-20%

+278%

+13%

+7%

+19%

3.7%

-22%

0%

Germany incl. franchise

partners* 61.2%

France 19.6%

Switzerland 3.0%

Italy 2.6%

Spain 2.6%

Other countries incl.

franchise partners 11%

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THE GRENKELEASING FRANCHISE SYSTEM

8GRENKELEASING AG GROUP THREE-MONTH’S REPORT 2007


Since its introduction four years ago, GRENKELEASING’s

franchise system has proven to be a very effective way of

tapping new markets quickly and sustainably. It provides

excellent opportunities to minimize risks and costs in

the start-up phase. The group works with franchisees

who have local market knowledge and personal

commitment and assume start-up costs and risks.

GRENKELEASING does not hold a stake in these legally

independent entities, but after a specific period it has

the option to buy the company on pre-defined terms.

This purchase option is structured to provide an ideal

balance between growth incentives for the franchise

partner and risk mitigation for GRENKELEASING.

Under the franchise agreement concluded with the

Company, GRENKELEASING provides expertise, its

tried-and-tested management tools, back office support

and refinancing. In addition, franchisees are allowed to

use the “GRENKE” and “GRENKELEASING” brand names.

These measures ensure that we are familiar with the

receivables portfolio assumed at the time of the potential

takeover of the franchise company and that the name

“GRENKE” is already well established on the market.

New business generated by GRENKELEASING AG’s

franchise partners in the first three months of the year

increased by 349% to 23.2 EURm (Q1-2006: 5.1 EURm).

62 persons are employed in the franchise companies.

Franchise partners

Oslo (Norway)

GRENKELEASING AS

Bremen (Germany)

GRENKEAUTOLEASING GmbH

Baden-Baden (Germany)

GRENKEFACTORING GmbH

Karlsruhe (Germany)

Kazenmaier FleetService GmbH

Guildford (UK)

Grenke Leasing Ltd.

Poznan (Poland)

GRENKELEASING Sp.z o.o

Budapest (Hungary)

GRENKELEASING Kft./Rt.

Bucharest (Romania)

GRENKELEASING S.R.L.

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Factoring, as a means of financing, has experienced a

boom in Germany over the last few years. In fiscal year

2006, sales at the leading factoring institutes

represented by the German Factoring Association rose

by an remarkable 30.7% to a total of EUR 72b*. Within

a mere five years, the volume of factoring in Germany

has doubled. The factoring ratio – the relationship

between the volume of purchased receivables and GDP

– topped 3.1% for the first time. In addition, the

number of customers, which is always an important

factoring benchmark, increased by 20% to 3,866

factoring users in 2006. In the SME sector in particular,

demand for factoring was boosted in the prior year by

the economic upturn, highlighting the long-term

evolution of the product to become a modern and

actively used form of financing. Currently, factoring is

still less popular in Germany than in other companies,

partly due to legal regulations.

The GRENKE Group offers factoring as a means of

financing through GRENKEFACTORING GmbH, which was

established as part of our franchise system. As a

provider of factoring for small and medium-sized

companies, it complements the range of financing

offered by the GRENKE Group. GRENKEFACTORING

applies decades of risk management experience

gathered by GRENKELEASING for its computer-assisted

purchase of receivables.

Factoring is a financing instrument which, with all its

advantages, now has a secure place alongside

traditional bank finance, leasing and other means of

financing. As studies show, the trend is clearly

moving away from credit to alternative means of

corporate financing, such as leasing and factoring.

The dynamic expansion of the factoring business in

Germany continued in 2007. Purchased receivables

from GRENKEFACTORING reached EUR 10.5m in the

first quarter of 2007. The margin (turnover/factoring

volume) in relation to the factoring volume of EUR

10.5m amounts to 2.3%.

Aside from the head office in Baden-Baden,

GRENKEFACTORING is also present in Berlin, Dusseldorf,

Hamburg and Munich.

THE GRENKEFACTORING GMBH

* This figure and the figures quoted below are based on details provided by the member companies – in the reporting year 20, currently 22 – whichrepresent more than 95% of the total factoring sales in Germany and, therefore, are a relevant measure of the factoring sector in Germany.

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RISK CATEGORIES



One of the main core competencies of GRENKELEASING

is the ability to assess credit risks and account for

them appropriately in its pricing policy. For the sake

of transparency, we have defined risk categories,

determining a “contribution margin 1 after loss

settlement” which provides an indication of how the

contract margins relate to risk. Risk is defined as a

function of score, contract term and saleability.

As the actual loss can only be determined precisely

towards the end of the contract term, the contingent

residual risk associated with current contracts is

estimated on the basis of historical risk curves.

Estimates obviously become more precise the older the

portfolio or the shorter the residual term.

If lease contracts are terminated due to arrears, a

termination claim (claim to damages) arises against

the lessee. The calculations are based on an average

collection rate for such claims. Likewise, an average

residual term is assumed for each portfolio. Under this

method, inaccuracies are inevitable, but should not

diminish the informative value of the results.

The table shows that the best financial results are

obtained with medium risks. Very good risks put

pressure on margins, and defaults on bad risks have a

negative effect.

Crucial for understanding these figures is the fact

that even when the “contribution margin 1 after

loss” is slightly negative, contribution margin 2 is

nevertheless usually positive, because additional

income from asset insurance and sale considerably

exceed the ongoing costs of contract management.

Risk Categories** (figures stated in EUR) 2003 2004 2005 2006 3-Month’s 2007

Category 1 Acquisition cost 97,023,937 104,515,781 126,708,580 156,236,768 37,737,972

Forecast loss 3,073,711 3,733,208 4,372,458 5,222,716 1,310,288

M1* after loss 6.2% 5.5% 5.7% 4.9% 4.9%


Forecast loss 3,079,038 3,979,114 4,361,553 4,928,574 1,282,967

M1* after loss 7.6% 7.7% 7.6% 6.5% 6.5%


Forecast loss 2,942,311 3,362,091 5,265,424 4,581,958 1,317,811

M1* after loss 6.2% 6.8% 6.4% 6.6% 6.0%


Forecast loss 3,811,810 5,788,393 5,614,043 5,870,611 1,281,321

M1* after loss 4.0% 2.2% 2.7% 1.1% 0.5%


Forecast loss 3,872,965 5,899,305 4,234,085 3,002,161 557,917

M1* after loss -0.8% -3.0% -2.0% 0.3% 0.4%

* M1 = contribution margin 1** Leasing Division

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EXPLANATION OF THE KEY FIGURES

Average number of employees This is the average number of employees in the

GRENKELEASING AG group in the reporting period.

This figure does not include directors; part-time

employees are included on a proportionate basis.

Contribution Margin/M The contribution margin, also known as gross profit, is a

term from operational cost accounting. The contribution

margin is the contribution made, for example, by a

product to cover fixed costs and generate a net profit. It

is calculated as the difference between revenues and

variable costs incurred directly by the product.

At GRENKE, contribution margin 1 is calculated as the

present value of the interest margin net of

commissions to third parties. Contribution margin 2

includes all present value cash flows from expected

revenues (e.g. net income from insurance business)

and expenses (excluding selling costs) over the entire

term of a leasing agreement.

Cost/Income Ratio Comparing expenses with income produces the cost-

income ratio. Contrary to approaches usually used by

bank analysts, we deduct the cost of loss

settlement/risk provision from income, even if this

results in a somewhat lower ratio. Increased sales in

the leasing market would be possible if greater risks

were taken. However, this should not lead to an

improvement in the cost-income ratio.

We determine the cost-income ratio as the ratio of the

total of all expenses (less valuation expenses and

taxes) to income, comprising net interest income

from leasing business after loss settlement, net

income from insurance business, net income from new

business, additional income from realization, ot her

operating income and net interest income (other than

from leasing business).

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Embedded Value Income from a leasing agreement is allocated over the

term in IAS/IFRS accounting. Hence, as of a given

balance sheet date, a large proportion of profit from the

contract portfolio relates to future periods. Based on

comparable analyses used in the insurance sector, we

estimate the present value of future net cash flows from

the current contract portfolio on the balance sheet date

(embedded value), deduct estimated expenses from this

value and add equity.

Mean acquisition value The mean acquisition value is determined as the

arithmetic mean of the acquisition costs of all leased

assets for which leasing agreements were concluded in

the reporting period.

New Business New business comprises the acquisition costs of all

newly acquired assets from leasing and lease-

purchase contracts and the factoring volume in the

reporting period.

RoE Abbreviation for “return on equity”. The return on

equity is calculated as a ratio of the net profit for the

year to the equity disclosed in the balance sheet. The

ratio gives an indication as to the return on

shareholder capital.

Share of corporate customers in the lease portfolio Corporate customers means all lessees who are not

subject to specific protective regulations for

consumers. The figure relates to the number of newly

concluded leasing agreements in the reporting period.

Share of IT Products in the lease portfolio IT products means information technology equipment

(such as PCs, servers, printers), copying technology

and communication technology. The figure relates to

the number of newly concluded leasing agreements in

the reporting period.

Volume of leased assets The volume of leased assets is the total of all

(historical) acquisition costs of assets from leasing and

lease-purchase agreements which had not yet expired

as of the balance sheet date.

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OVERVIEW OF THE GROUP

Head office, Baden-Baden (Germany)

Dublin (Ireland)

Milan (Italy)

Barcelona (Spain)

Vianen (Netherlands)

Schiltigheim (France)

Aix-en-Provence, Lyon, Nantes, Paris I, Paris II (Intramuros), Toulouse




Prague (Czech Republic)

Herlev (Denmark)

Brussels (Belgium)

GRENKE LEASE SPRL

Vienna (Austria)

GRENKELEASING AG

GRENKE LOCATION SAS

GRENKELEASING s.r.o.

Stockholm (Sweden)

GRENKELEASING AB

Grenke Investitionen Verwaltungs KGaA

GLG Grenke-Leasing GmbH

WEBLEASE NETBUSINESS AG

Branches

GRENKE LIMITEDGRENKE FINANCE Plc.

GRENKELEASING ApS

GRENKE Locazione S.r.l.GRENKE LEASING S.r.l.

Grenkefinance N.V.

GRENKE ALQUILER S.A.

Berlin, Bremen, Dortmund, Dresden,Dusseldorf, Erfurt, Frankfurt,Hamburg, Hanover, Cologne, Leipzig,Magdeburg, Mannheim, Memmingen,Mönchengladbach, Munich,Nuremberg, Rostock, Stuttgart

Branches

GRENKELEASING AG

Zurich (Switzerland)

Basel, Lausanne

GRENKELEASING AG

Branches

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GRENKE GROUP LOCATIONS IN EUROPE

Expansion areas

Countries with GRENKELEASING branches

With franchise partner:

* Poznan (PL), Guildford/London (UK), Oslo (NO), Budapest (HU), Bucharest (RO)

** FACTORING Baden-Baden (DE), CAR LEASING Bremen, Karlsruhe (DE)

*

*

*

*

*

**

**

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THE BOARD OF DIRECTORS OF GRENKELEASING AG

Wolfgang GrenkeChairman of the Board

56 years old

Strategy, corporate development,

internal audit

Dr. Uwe Hack45 years old

Investor relations,

treasury, financial control

Mark Kindermann45 years old

Accounting, quality management,

human resources, legal, administration

Thomas KonprechtVice-Chairman of the Board

48 years old

Marketing, sales, management services

Michael Kostrewa39 years old

Information technology,

e-Business

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THE SUPERVISORY BOARD OF GRENKELEASING AG



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Name Activity Other Supervisory Board/

Advisory Board Functions

Prof. Dr. Ernst-Moritz Lipp Chairman of the Supervisory Board, BOA Holding GmbH, Karlsruhe

Age: 56 Professor of international finance Stutensee, DE, TFL International

First elected: 2003 General manager of ODEWALD & GmbH, Weil a. Rhein, DE,

Elected until the shareholders’ meeting 2008 COMPAGNIE Gesellschaft für Betei- Burkart Verwaltungen GmbH,

ligungen mbH, Baden-Baden, DE Singen, DE

Gerhard E. Witt Deputy Chairman of the GRENKE Investitionen

Age: 62 Supervisory Board, Verwaltungs KGaA, Berlin, DE

First elected: 1997 Public auditor and tax advisor,

Elected until the shareholders’ meeting 2008 Baden-Baden, DE

Dr. Brigitte Sträter Member of the Supervisory Board,

Age: 67 Owner and manager of

First elected: 2001 the PR agency CENA,

Elected until the shareholders’ meeting 2010 Dusseldorf, DE

Dieter Münch Member of the Supervisory Board, GRENKE Investitionen

Age: 64 Retired bank officer, Verwaltungs KGaA, Berlin, DE,

First elected: 2000 Chairman of a foundation, Weisenburger Bau + Grund AG, DE,

Elected until the shareholders’ meeting 2010 Weinheim, DE Halle/Saale, DE

Dr. Oliver Nass Member of the Supervisory Board,

Age: 39 Commercial general manager,

First elected: 2005 of ESG France, Paris, France

Elected until the shareholders’ meeting 2010

Erwin Staudt Member of the Supervisory Board, PROFI Engineering Systems AG,

Age: 59 Economics graduate, President Darmstadt, DE,

First elected: 2005 of the soccer club VfB Stuttgart USU AG, Möglingen, DE,

Elected until the shareholders’ meeting 2010 1893 e.V, Leonberg, DE Hahn Verwaltungs-GmbH, Fellbach, DE

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DIRECTORS’ HOLDINGS AS PER MARCH 31, 2007



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Shares held by members of Board of Directors

Wolfgang Thomas Mark Michael

Grenke Konprecht Kindermann Kostrewa

Units Units Units Units

Status as per: Mar. 31, 2007 4,871,619* 330,730 52,053 47,500

Options held by members of Board of Directors**

Wolfgang Thomas Mark Michael

Grenke Konprecht Kindermann Kostrewa

Units Units Units Units

Status as per: Mar. 31, 2007 0 0 0 1,100

Shares held by Supervisory Board members

Dieter Prof. Dr. Ernst-

Münch Moritz Lipp

Units Units

Status as per: Mar. 31, 2007 75 16,000

* The Board of Directors granted the following call option: Wolfgang Grenke: 150,000 shares.

** Granting of options within the scope of the stock option programme. Subscription right to 1 share each.

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GRENKELEASING AG, BADEN-BADENCONSOLIDATED INCOME STATEMENT FOR THE PERIODFROM JANUARY 1, 2007 TO MARCH 31, 2007



Jan. 1. - Mar. 31, Jan. 1. - Mar. 31,2007 2006

EURk

Income from interest on lease receivables

Expenses from interest on refinancing liabilities

Net interest income from leasing business

Expenses from settlement of claims

Net interest income after settlement of claims from leasing business

Income from insurance business

Expenses from insurance business

Profit from insurance business

Profit from new business

Income from disposals

Expenses from disposals

Profit from disposals

Other operating income

Personnel expenses

Operating expenses

Administrative expenses

Consulting and audit fees

Distribution costs (without commissions)

Amortization/ depreciation

Other operating expenses

Other taxes

Profit/ loss from ordinary operations

Expenses/Income from the fair value measurement

Other interest income

Other interest expenses

Net profit for the period before taxes

Income taxes

Deferred taxes

Net profit for the period

Earnings per share (basic)

Earnings per share (diluted)

Average shares outstanding (basic)

Average shares outstanding (diluted)

23,216 21,830

7,829 6,355

15,387 15,475

4,181 3,633

11,206 11,842

4,482 4,343

390 410

4,092 3,933

4,806 4,348

3,444 3,700

2,652 3,065

792 635

279 208

5,299 4,976

1,303 1,153

718 648

738 503

679 796

469 431

363 345

211 122

11,395 11,992

-2 134

155 151

165 185

11,383 12,092

14,375 4,631

-10,642 -43

7,650 7,504

0.56 0.55

0.56 0.55

13,679,679 13,643,646

13,693,574 13,693,574

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GRENKELEASING AG, BADEN-BADENCONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2007



Assets 3-Months Report Annual Accounts,Mar. 31, 2007 Dec. 31, 2006

EURk

Current assets

Cash on hand and balances with banks

Financial assets

Lease receivables

Trade receivables

Lease assets for sale

Tax receivables

Other current assets

Total current assets

Non-current assets

Lease receivables

Property, plant and equipment

Intangible assets

Deferred tax assets

Other non-current assets

Total non-current assets

Total assets

Liabilities and equity

Liabilities

Current liabilities

Liabilities from the refinancing of lease receivables

Trade payables

Tax liabilities

Provisions

Current portion of non-current bank liabilities

Financial instruments with negative fair value

Other current liabilities

Deferred lease payments

Total current liabilities

Non-current liabilities

Liabilities from the refinancing of lease receivables

Non-current bank liabilities, less the current portion

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities

Equity

Capital stock

Capital reserve

Revenue reserves

Currency translation

Hedging reserve

Pension reserve

Profit carryforward

Total equity

Total liabilities and equity

35,812 46,421

2,019 1,804

372,638 364,529

1,897 2,454

11,871 12,333

7,095 13,146

37,939 34,949

469,271 475,636

586,841 580,684

30,200 28,093

2,979 2,885

19,273 16,799

80,647 75,874

719,940 704,335

1,189,211 1,179,971

182,010 222,273

7,346 11,696

5,799 1,195

1,322 1,316

1,586 1,498

750 1,206

6,159 6,536

46,741 42,371

251,713 288,091

668,555 621,878

8,624 9,617

48,939 57,079

2,126 1,626

728,244 690,200

17,486 17,486

60,052 60,052

1,919 1,919

-774 -511

1,500 1,310

-39 -36

129,110 121,460

209,254 201,680

1,189,211 1,179,971

Global Reports LLC



GRENKELEASING AG, BADEN-BADENCONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2007 TO MARCH 31, 2007

continued on page 21

Jan. 1. - Mar. 31, Jan. 1. - Mar. 31,2007 2006

EURk

Net profit for the period before taxes

Non-cash items contained in net profit for the period and

reconciliation to cash flow from operating activities

+ Amortization/ depreciation

-/+ Profit/ loss from the disposals

of equipment and intangible assets

-/+ Investment income

-/+ Non-cash changes in equity

+/- Increase/ decrease in other provisions

- Additions of lease receivables

+ Payments by lessees

+ Disposals/ reclassifications of lease receivables at residual carrying values

+/- Changes from other set-offs

- Interest income from lease receivables

- Increase in other receivables from lessees

+/- Currency translation differences

= Change in lease receivables

+ Additions of liabilities from the refinancing of lease receivables

- Payment of annuities to refinancers

- Disposal of liabilities from the refinancing of lease receivables

+ Interest expenses from lease liabilities

+ Change from fair value measurement

+/- Currency translation differences

= Change in liabilities from the refinancing of lease receivables

- Changes of loans to franchisees

Changes in other assets/liabilities

-/+ Increase/decrease in other assets

+/- Increase/decrease in deferred lease payments

+/- Increase/decrease in other liabilities

= Cash flow from operating activities

-/+ Taxes paid/ received

- Interest paid

+ Interest received

= Net cash flow from operating activities

11,383 12,092

469 431

0 -10

10 34

-80 797

6 -50

-105,525 -115,048

95,620 87,063

21,300 16,374

-13 -21

-23,216 -21,830

-2,943 -2,066

511 434

-14,266 -35,094

141,350 77,969

-54,545 -49,210

-87,955 -8,906

7,829 6,354

0 -134

-265 -365

6,414 25,708

-5,467 -3,351

-2,477 -12,380

4,371 3,315

-4,683 2,058

-4,320 -6,450

-3,718 -3,115

-165 -185

155 151

-8,048 -9,599

Global Reports LLC



Jan. 1. - Mar. 31, Jan. 1. - Mar. 31,2007 2006

EURk

- Purchase of equipment and intangible assets

+ Proceeds from sale of equipment and intangible assets

= Cash flow from investing activities

+/- Raising/ repayment of bank liabilities

- Dividend payment

+ Payments from stock option program

= Cash flow from financing activities

Cash funds at beginning of period


- Bank liabilities from overdrafts

= Cash and cash equivalents at beginning of period

+/- Change due to currency translation

= Cash funds after currency translation

Cash funds at the end of period


- Bank liabilities from overdrafts

= Cash and cash equivalents at the end of period

Change in cash funds during period

Net cash flow from operating activities

+ Cash flow from investing activities

+ Cash flow from financing activities

= Total cash flow

-1,717 -1,013

31 17

-1,686 -996

-376 -266

0 0

0 0

-376 -266

46,421 55,677

-1,011 -6

45,410 55,671

30 7

45,440 55,678

35,812 48,325

-482 -3,508

35,330 44,817

-10,110 -10,861

-8,048 -9,599

-1,686 -996

-376 -266

-10,110 -10,861

Global Reports LLC

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Global Reports LLC

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Global Reports LLC



GRENKELEASING AG, BADEN-BADENSTATEMENT OF RECOGNIZED INCOME AND EXPENSE

Jan. 1 - Mar. 31, Jan. 1 - Mar. 31,2007 2006

EURk

Change in the fair value

of financial instruments used for hedging purposes recognized in equity

Adjustment item for the currency translation of foreign

subsidaries

Accounting gains and losses from

defined benefit pension commitments and similar obligations

Deferred taxes on changes in value recognized directly

in equity

Changes in value recognized directly in equity

Profit after taxes

Total net profit for the period and changes in

value recognized in equity

217 847

-263 -44

-4 0

-26 -105

-76 698

7,650 7,504

7,574 8,202

Global Reports LLC

25

SELECTED EXPLANATORY NOTES



Accounting Policies

Like the consolidated financial statements as of

December 31, 2006, GRENKELEASING AG’s (hereinafter

also referred to as the “Company”) interim financial

reporting as of March 31, 2007 complies with the

International Financial Reporting Standards (IFRSs)

issued by the International Accounting Standards

Board (IASB) and adopted by the EU.

The provisions of IAS 34 concerning interim financial

reporting have been applied.

All interim financial statements of the companies

included in the consolidated financial statements of

GRENKELEASING AG have been prepared in accordance

with uniform accounting policies.

As the interim financial statements are based on the

consolidated financial statements, we refer to the

detailed description of accounting, measurement and

consolidation methods in the notes to the consolidated

financial statements as of December 31, 2006.

New Mandatory Accounting Standards

Various changes to IFRSs as well as new IFRSs and

International Financial Reporting Interpretations

Committee interpretations (IFRICs) have been

published by the IASB during the past few years. The

provisions which have been applicable since January

1, 2007 and are relevant or potentially relevant for

the GRENKELEASING AG as well as their impact on the

consolidated financial statements are outlined below.

Changes to the IFRSs which have not been explicitly

mentioned are not relevant for the Company’s

financial statements. This does not have any effect on

recognition and measurement, however.

On August 18, 2005, the IASB published the standard

IFRS 7, “Financial Instruments: Disclosures”. This

standard supersedes the existing IAS 30 and adopts

all provisions regarding disclosures in the notes

contained in IAS 32. In this connection, the capital

disclosure requirements in IAS 1 were amended or

extended. The Standard has completely restructured

the disclosure requirements for financial instruments.

Disclosures on the objectives, methods, risks, security

and management processes are now required.

On September 9, 2006, the EU adopted IFRIC 8,

“Scope of IFRS 2” and IFRIC 9, “Reassessment of

Embedded Derivatives”. IFRIC 8 stipulates that the

share-based payments governed by IFRS 2 also

include arrangements under which the consideration

(if any) is inappropriate.

Voluntary Adoption of New AccountingStandards or Standards Yet to be Endorsedby the EU

Apart from the IFRSs whose application is mandatory

for fiscal years 2006 and 2007, the IASB has also

published other IFRSs and IFRICs, which have already

at least partly run through the EU endorsement

process but which will only become mandatory at a

later date. Below, only those standards and

interpretations which could be relevant for

GRENKELEASING AG are described. Voluntary early

application of these standards is explicitly permitted

and encouraged. However, GRENKELEASING AG only

applies this option where mentioned explicitly below.

IFRIC 10, “Interim Financial Reporting and

Impairment”, published on July 20, 2006, provides that

impairment losses recognized on goodwill and certain

financial assets that may not be reversed pursuant to

IAS 39 may not be reversed in subsequent periods.

On November 2, 2006, IFRIC 11, “IFRS 2 Group and

Treasury Share Transactions” was published. The

interpretation states that share-based payment

transactions, in which an entity receives services or

goods as consideration for its own equity instruments

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shall be accounted for in accordance with IFRS 2,

regardless of how the equity instruments were

acquired. Adoption of IFRIC 11 is mandatory for fiscal

years beginning on or after March 1, 2007.

Both IFRS 8, “Operating Segments”, and IFRIC 12,

“Service Concession Arrangements”, were published

on November 30, 2006. IFRS 8 supersedes IAS 14,

“Segment Reporting”. The standard is mandatory for

fiscal years beginning on or after January 1, 2009.

IFRIC 12 deals with the accounting treatment of

public-to-private service concession arrangements.

Adoption of the interpretation is compulsory for fiscal

years beginning on or after January 1, 2008.

The IASB published a revision to IAS 23, “ Borrowing

Costs”, on March 29, 2007. This change affects the

suspension of voting rights for the immediate

recognition of borrowing costs under expenses. The

standard is mandatory for fiscal years beginning on or

after January 1, 2009.

The GRENKELEASING AG has not exercised its option to

apply all of the above standards early. Other than

additions or changes to disclosures, no significant

effects are currently expected.

Use of Judgment and Main Sources ofEstimating Uncertainties

The main estimating uncertainties and the associated

disclosure requirements are in the following areas:

Measurement of allowances on non-performing lease

receivables on the basis of the recoverability rate,

Consideration of estimated residual values at the

end of the lease term in determining the present

value of lease receivables,

Recognition of leased assets for sale at estimated

residual values.

Non-performing lease receivables are carried at

nominal value less appropriate bad debt allowances.

The amounts of bad debt allowances are determined

using percentages and processing categories.

Percentages are calculated using statistical methods.

They are reviewed once a year for validity. Processing

statuses are grouped together in processing categories

set up with a view to risk. The following table lists the

processing categories:

Category Type

0 Current contract not in arrears

1 Current contract in arrears

2 Terminated contract with serviced installment agreement

3 Terminated contract (recently terminated or

court order for payment applied for)

4 Legal action (pending or after objection

to court payment order)

5 Order of attachment issued

6 Statement in lieu of oath (applied for or issued)

7 Derecognized

8 Being settled (not terminated)

9 Discharged (completely paid)

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A decrease in value is assumed for categories 2 to 7 as the contracts have been terminated due to defaults in

payment. The allowance rates range between 5% and 100%.

Receivables from non-performing contracts are included in other current lease receivables. Lease receivables

break down as follows:

Mar. 31, 2007 Mar. 31, 2006EURk

Changes in performing lease receivables

Balance at beginning of period 876,755 797,159

+ Change in the period 11,323 33,028

Lease receivables (current + non-current) from

current contracts at period-end 888,078 830,187

Changes in non-performing lease receivables

Gross reveivables at beginning of period 134,248 136,097

- Accumulated valuation allowances at beginning of period -65,790 -72,428

= Non-performing lease receivables at beginning of period 68,458 63,669

+ Change in gross receivables during the period 6,380 6,175

- Disposal in gross receivables during the period 3,061 5,407

+ Disposal of accumulated valuation allowances during the period 1,837 3,374

- Addition of accumulated valuation allowances during the period 2,213 2,077

= Non-performing lease receivables at period-end 71,401 65,734

Lease receivables (carrying amounts of current and

non-current receivables) at beginning of period 945,213 860,828

Lease receivables (carrying amounts of current and

non-current receivables) at period-end 959,479 895,921

Unguaranteed residual values are used in calculating lease receivables in accordance with the definition in IAS 17.

They are calculated on the basis of past experience and statistical methods. Based on experience, residual values

range between 11% and 15% of historical cost, depending on the term of the lease contract.

Leased assets for sale are measured at historical residual values, taking into account their actual saleability. As of the

balance sheet date, the residual values used amounted to between 6.6% and 19% of the original acquisition cost. If

a sale is considered unlikely due to the condition of the asset, the asset is written off and recognized as an expense.

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Refinancing

On September 18, 2006, GRENKE FINANCE Plc, Dublin,

Ireland, concluded three revolving credit facilities with

three German banks. Over the one-year term of the

agreement, minimum amounts of EUR 5,000k can be

drawn on at any time for a period of one month. As of

March 31, 2007, EUR 45,000k of these facilities had been

drawn on subject to an average interest rate of 4.32%.

They are all due within one month, i.e. April 2007.

Pensions

As of the balance sheet date, the provision for pensions

disclosed under non-current liabilities amounted to

EUR 65k (CHF 105k). This amount comprises a present

value of the obligation (DBO) of EUR 292k (CHF 475k), a

fair value of plan assets of EUR 228k (CHF 370k) and an

actuarial loss of EUR 4k (CHF 6k). The actuarial loss was

recognized in equity in a separate item under the

capital reserve in accordance with the revised IAS 19.

As of March 31, 2007, the following income and

expenses were disclosed:

Service cost: EUR 7k (CHF 12k)

Interest expense: EUR 2k (CHF 4k)

Income from interest

on plan assets: EUR 1k (CHF 2k)

Employee Stock Option Programs

A total of 13,895 stock options can be exercised and

therefore have a dilutive effect as of March 31, 2007

(prior year: 49,928 stock options). This figure relates to

outstanding options from the second employee stock

option program. As of March 31, 2007, 0 stock options

are potentially dilutive (prior year: 0 stock options).

In the exercise period from May 9 to June 5, 2007, it will

be possible to exercise options from the second employee

stock option program not exercised in the prior year. The

exercise price is determined for each exercise period on

the basis of the average price of 20 trading days. The

average price in the relevant exercise period is calculated

between March 29 and April 27, 2007.

The options were measured using option pricing

models. This resulted in a value of EUR 4.47 per option

for outstanding options from the second employee

stock option program as of March 31, 2007.

As all of the stock option programs were launched

before November 7, 2002, the options do not need to be

measured in accordance with IFRS 2, i.e. recognizing

any changes in value in profit or loss.

Dividend Payment

The ordinary shareholders’ meeting on May 8, 2007 will

adopt the resolution on the appropriation of

GRENKELEASING AG’s retained earnings for fiscal year

2006 of EUR 51,069,498.00. The Board of Directors and

the Supervisory Board will propose a dividend of EUR

0.55 per share. The remainder of 43,545,674.55, after

the deduction of the dividend of EUR 7,523,823.45, shall

be carried forward to new account.

In the prior year, the shareholders’ meeting adopted the

proposal of the Board of Directors and the Supervisory

Board, resolving to appropriate, and appropriating, the

retained earnings for 2005 as follows:

Retained earnings EUR 46,906,004.09

Distribution of the dividend

of EUR 0.50 per no-par share for

a total of 13,643,646

no-par shares EUR 6,821,823.00

Transfer to revenue reserves --

Profit carried forward EUR 40,084,181.09

(to new account)

The dividend was paid to the shareholders of GRENKE-

LEASING AG on May 10, 2006.

Global Reports LLC



Related Party Disclosures

On March 12, 2007, the supervisory board of

GRENKELEASING AG concluded a phantom stock

agreement with, and for the benefit of, Dr. Hack. Within

the scope of this agreement, Dr. Hack receives for the

current fiscal year and each of the two subsequent fiscal

years a claim to payment equal to the increase in value of

30,000 shares in GRENKELEASING AG based on a defined

basic share price. The share price is the unweighted

arithmetic mean of the Xetra closing prices on all trading

days from December 1 to December 23 of the respective

prior year. The basic share price for 2007 is EUR 35.37.

The maximum payment arising from this agreement is

limited to EUR 600,000 for the period of three years.

Under the program, Dr. Hack is obligated to invest the

respective net amount paid plus a personal contribution

of 25% of that amount in GRENKELEASING AG shares.

As of March 31, 2007, the phantom stock was worth EUR

84k. Since the pay-out amount is only due at the end of

2007, a proportionate expense of EUR 5,429 is

recognized in the first quarter.

Employees

During the reporting period, the GRENKELEASING AG

Group employed an average of 404 persons (prior year:

375), excluding directors.

Events After the Balance Sheet Date

Expansion of the Franchise SystemA franchise agreement was concluded with GRENKE-

LEASING S.R.L., Bucharest, Romania, on April 10, 2007.

The franchise partners are entitled to use the "GRENKE"

brand, but remain legally and financially independent.

Outlook

In 2007, we will drive forward the expansion of our

international business and product development

strategy.

Expanding our foreign markets has created a broader

basis of successful national companies. The fact that

international business is now beeing supportet by a total

of five countries with each expected to report a volume of

new business in excess of EUR 10m for the fiscal year

substantiates our strategy of a pan-European approach.

The growing profitability of new business is reflected in

the development of our primary controlling measure,

contribution margin 2. It reflects the overall profitability

of our new business and has improved, both in absolute

and relative terms compared with the volume of new

leasing business, in a market that remains impacted by

pressure on margins. This shows that in terms of our

control via contribution margin 2, we are on the right

track to ongoing, profitable growth.

On the basis of these measures, we are aiming for new

business growth of approx. 10% in the GRENKE Group in

the fiscal year. We expect group profit in 2007 to be on a

par with the prior year, as we will continue to push

forward our strategy of further developing new markets

and products, thus necessitating investments in

personnel and operating expenses.

Global Reports LLC

DATES 2007

26/04/2007 Publication of Financial Statements of Q1 2007

08/05/2007 General Meeting, Baden-Baden

03/07/2007 Publication New Business and Contribution Margin1


02/10/2007 Publication New Business and Contribution Margin1


DVFA Analyst Conference in Frankfurt

CONTACT

GRENKELEASING AGNeuer Markt 276532 Baden-Baden

Tel.: +49 (0) 7221 - 5 00 72 04Fax: +49 (0) 7221 - 5 00 71 12

www.grenkeleasing.comwww.weblease-europe.comwww.asset-broker.com

E-mail: [email protected]

You may f ind the detailed glossary to this report on www.grenkeleasing.com



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Global Reports LLC

GRENKELEASING AGNeuer Markt 276532 Baden-Baden

Tel.: +49 (0) 7221 - 5 00 72 04Fax: +49 (0) 7221 - 5 00 71 12

www.grenkeleasing.comwww.weblease-europe.comwww.asset-broker.com

E-mail: [email protected]

Global Reports LLC

070425 exner qi englisch - morningstar, inc

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