leasing – banking – factoring - finance magazin · 4 leasing – banking – factoring ......

Leasing – Banking – Factoring

11. Structured FINANCE 2015 - Investionen in Lateinamerika -

25. November 2015, Stuttgart

GRENKE at a glance*

Business

Model

GRENKE is a specialized service provider for the financing of mainly IT Products and additional

distribution assistance

With 111 Locations in 29 Countries globally

Serviced by branches and sales offices in 28 German cities

Cooperation with a dealer network of around 24,000 IT dealers globally

Acquisition value of individual units is usually below EUR 25,000

The average acquisition value of the new businesses is roughly EUR 8.000,- small, the so-called

“small-ticket” area

Roughly 83% of the leasing contracts relate to IT products

GRENKE uses a franchise model to enable the cost-effective establishment of new business in other

new countries and markets

GRENKE does not hold an interest in the locally operating franchise companies, but only provides

expertise, operating infrastructure, refinancing and services

Key facts Market Cap: EUR 2.09bn as of September 30, 2015

Stock corporation under German Law listed on Frankfurt Stock Exchange and quoted on the SDAX

BBB+ Rating by S&P outlook stable (August 2015)

Leasing – Banking – Factoring | Investor Relations 2

Market leader in Europe for small-ticket financing

* as of September 30, 2015

Expansion


28 German locations

83 International

locations

29 Countries

> 6,000 IT dealers in Germany

> 18,000 IT dealers international

GRENKE Group’s New Business* New Business GRENKE Group Leasing*

Principal Markets

Leasing – Banking – Factoring | Investor Relations 4 * as of September 30, 2015; based on New Business volume

New Business GRENKE

Group Factoring;

19.1%

Business start-up financing

GRENKE BANK; 1.2%

New Business

GRENKE Group

Leasing; 79.7%

Germany; 25.4%

Northern/Eastern Europe; 15.0%

Western Europe (without Germany);

33.0%

Southern Europe; 25.0%

Other regions; 1.1%

Structure of Leasing Portfolio*


Portfolio details

Share of “IT” products in

the leasing portfolio 83%

Average acquisition value

EUR 8,472 per contract

472,862 current contracts,

duration of 20 months

Approximately 95% of

contracts < EUR 25k

(small ticket products)

100% of leasing volume

achieved through B2B

IT equipment (excl. notebooks)

Photocopying equipment

Telecommunications

Machinery and office equipment

Security equipment

Medical equipmentNotebooks

General office technologyOthers

* as of September 30, 2015; based on New Business volume

Expansion Model


Franchise system

Basis Franchise agreement

Franchise handbook

Task

Sharing

Local market knowledge

Personal commitment

Assumption of start-up costs & risk

Leasing: fee per contract

Factoring: monthly fixed price and

volume based fee

Franchiser (leasing/factoring)

– Supply of know-how

– Infrastructure

Exit Call option for GRENKE

Organic growth Cell division

Splitting up of branch offices into two offices

generally as of 100 to 140 contract inquiries per week,

providing regional proximity Depending on Sales

Region´s size 2 – 10 employees (Germany and

international countries differ)

Quality-oriented and results-based employee

payment structure

1. Sales

Region

…

…

…

…

2. Sales

Region

3. Sales

Region

Optimised Risk Structure


Risks

Risk of Default

Dealer/Customer

Dependence

Asset Risks

Refinancing

IT-based model for forecasting losses

Expected loss taken into account in CM2 based on the leasing contract

Well diversified lessee portfolio

No dependence on individual dealers, manufacturers

or end customer – no dealer has a larger than 2% share

No residual values (full-amortisation claim)

Maintenance or warranty risks are assumed by dealers and manufacturers

Average acquisition value approximately EUR 8,000 per contract based on new business

Secure refinancing through different alternatives of financing

S&P rating since May 2003, reconfirmed in August 2015

– BBB+ for long-term liabilities (investment grade)

– A-2 for short-term liabilities/outlook stable

GBB (Gesellschaft für Bonitätsbeurteilung mbH) rating since October 2014, A- / outlook stable


“Copy and paste” for every country all over the world.

Easy and valid

Well experienced since 1978

Standardisation Automatisation Risk-

adjusted

Expansion

Singapore*

* Scheduled

Thank you for your kind attention!

Renate Hauss

Head of Investor Relations

Phone: +49 7221 5007-204

Fax: +49 7221 5007-4218

E-mail: [email protected]

Internet: www.grenkefactoring.de

www.asset-broker.de

www.grenkebank.de

GRENKELEASING AG

Neuer Markt 2

76532 Baden-Baden

Germany

Your contact for further information:

Reports are available at:

www.grenke.de/FinancialReports

Appendix

Trend in Loss Rate

Loss Rate > Ø Expected Loss Rate of 1.5% p.a. over a Single Business Cycle

* Losses p.a. (of historical asset values, factored in)


1.3% 1.2% 1.2% 1.2%

1.9% 1.9%

1.7% 1.7% 1.7%

1.5% 1.5%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 6M-2015

Loss rate*

Relation of Settlement of Claims and

Risk Provision to Net Interest Income

Settlement of Claims, Risk Provision and Net Interest Income


0%

10%

20%

30%

40%

50%

60%

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EU

Rm

Settlement of Claims and Risk Provision (SCRP)

Net Interest Income (NII)

SCRP/NII

Debt issuance program

Promissory notes

(Schuldschein)

Revolving credit facility

Money market line

Commercial paper program

Overdraft facility

Loans

Asset-backed commercial

paper program

ABS Bond Goals 2009

Deposit business

Term deposits

Global loan

Funding Mix

Senior Unsecured Asset Based GRENKE Bank

Approx.

1,537 EURm Approx.

638 EURm Approx.

451 EURm

59% 24% 17% * Status: September 28, 2015


CM2 is made up of the present value of operating income

of a lease contract less risk and individual contract costs.

CM2

GRENKE Group Leasing Business:

Trend in New Business and Contribution Margin

CM1 is calculated as the present value of the interest margin

net of commissions paid to third parties.

CM1

* New calculation of CM2 margin


0%

2%

4%

6%

8%

10%

12%

14%

16%

0

200

400

600

800

1,000

1,200

1,400

2008 2009 2010 2011 2012 2013 2014 9M-2015

EU

Rm

New Business

CM1 Margin

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

160

180

200

220

2008 2009 2010 2011 2012* 2013 2014 9M-2015

EU

Rm

CM2

CM2 Margin

Disclaimer

This presentation contains forward-looking statements. Forward-looking statements are statements that are neither

facts nor a description of past events; they comprise statements relating to our assumptions and expectations. Each

statement made in this presentation that reflects our intentions, assumptions, expectations or forecasts as well as the

underlying presumptions is a forward-looking statement. These statements are based on planning figures, estimates

and forecasts currently available to the Board of Directors of GRENKELEASING AG. Accordingly, forward-looking

statements refer exclusively to planning data, estimates and forecasts at the time at which they are made. We assume

no responsibility to further develop or modify such statements in the event of fresh information being available or future

events occurring.

By their very nature, forward-looking statements imply risks and uncertainty factors. A large number of key factors can

contribute towards actual events varying quite substantially from forward-looking statements. Such factors include the

condition of the financial markets and the regional focal points of our investment activities.


leasing – banking – factoring - finance magazin · 4 leasing – banking – factoring ......

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