GRENKE invests in expanding digitalisation, presents preliminary results for 2022 financial year and publishes outlook for 2023

GRENKE AG / Key word(s): Miscellaneous/Preliminary Results GRENKE invests in expanding digitalisation, presents preliminary results for 2022 financial year and publishes outlook for 2023 02-March-2023 / 17:09 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. GRENKE invests in expanding digitalisation, presents preliminary results for 2022 financial year and publishes outlook for 2023 New digitalisation programme "Digital Excellence" includes additional investments of EUR 45 to 50 million over the next three years End-to-end digitalisation in the core leasing business turning into a driver for speed, efficiency and growth Preliminary figures 2022: Consolidated Group net profit at upper end of the guidance range at EUR 84.2 million (2021: EUR 95.2 million or EUR 72.2 million excluding gain from the sale of viafintech) Outlook 2023: New leasing business between EUR 2.6 billion and EUR 2.8 billion; Consolidated Group net profit between EUR 80 million and EUR 90 million, including first investment tranche of EUR 15 million Baden-Baden, March 2, 2023: GRENKE, the global financing partner for small and medium-sized enterprises, is launching a digitalisation programme under the name "Digital Excellence" with immediate effect. In order to continue its successful international growth and expansion strategy, the Company will invest an additional total of EUR 45 million to EUR 50 million in the digital optimisation of the entire value chain. This will occur in over 30 countries over the next three years. Particularly the relatively new subsidiaries located in the future core markets of Australia, Canada and the USA will be equipped from their outset with state-of-the-art infrastructure to take full advantage of the exceptional growth potential in those markets. The digitalisation programme is based on a transformation to cloud technology. The investment in this technology marks the largest single initiative, amounting to one-third of the funds invested in the programme. The remaining investments will distributed across the automation of all core processes in the leasing business. An estimated EUR 15 million will be incurred as additional expenses in the current financial year. Today, GRENKE also presented preliminary, unaudited figures for the 2022 financial year. Consolidated Group net profit amounted to EUR 84.2 million (2021: EUR 95.2 million) and was at the upper end of the guidance range of EUR 75 million to EUR 85 million. Based on this result, the Board of Directors and the Supervisory Board will propose a dividend of EUR 0.45 per share for the 2022 financial year (2021: EUR 0.51). This would correspond to a payout ratio of 25 percent, which would be in line with the Consolidated Group's dividend policy. For the 2023 financial year, GRENKE expects new leasing business in the range of EUR 2.6 billion and EUR 2.8 billion and is targeting Consolidated Group net profit of EUR 80 million to EUR 90 million. For the 2024 financial year, the Board of Directors continues to expect new leasing business of EUR 3.4 billion. With the implementation of the digitalisation programme in the years ahead, the Consolidated Group profit in 2024 is anticipated to reach approximately EUR 120 million, instead of EUR 140 million as previously forecast. The break-even point should be reached as early as the 2025 financial year. This is expected to be the first year when the increase in efficiency reflected in the sales and administrative expenses will exceed the cost of IT investments. Overview of preliminary, unaudited group figures for 2022 according to IFRS (in EUR millions)    2022 2021 2022 vs. 2021 (∆ in %) Income statement       Jan. 1 – Dec. 31       Net interest income 344.5 366.8 -6.1 Settlement of claims and risk provision 120.4 142.8 -15.7 Net interest income after settlement of claims and risk provision 224.1 224.0 0.0 Income from operating business 385.7 374.0 3.1 Staff costs 149.1 127.5 16.9 Consulting and audit expenses 22.2 38.3 -42.0 Other expenses and depreciation/impairment 116.4 75.7 53.8 Operating result 98.0 132.5 -26.0 Earnings before taxes 111.0 123.5 -10.1 Net profit 84.2 95.2 -11.6 Earnings per share in euro 1.75 1.94 -9.8         Statement of financial position as of Dec. 31       Assets       Cash and cash equivalents 448.8 853.1 -47.4 Lease receivables 5,243.9 5,119.0 2.4 Intangible assets 51.5 60.3 -14.6 Other assets 668.5 628.5 6.4 Total assets 6,412.7 6,660.9 -3.7         Liabilities       Financial liabilities 4,794.7 5,077.2 -5.6 Other liabilities 285.8 314.7 -9.2 Total equity 1,332.2 1,269.0 5.0 Total equity and liabilities 6,412.7 6,660.9 -3.7         Equity ratio in percent 20.8 19.1 1.7 pp.   Statement of cash flows       Jan. 1 – Dec. 31.       Payments by lessees 2,319.5 2,329.2 -0.4 Repayments refinancing (excluding deposit business) 2,065.3 1,328.5 55.5 Proceeds from new refinancing (excluding deposit business) 1,984.5 656.3 202.3 The 2022 financial year figures in this release are preliminary and unaudited. The Annual Report 2022 will be published on March 16, 2023. The Annual Report will be available at https://www.grenke.com/investor-relations/reports-and-presentations/. For further information, please contact: Investor contact Press contact Anke Linnartz Stefan Wichmann Neuer Markt 2 Neuer Markt 2 76532 Baden-Baden 76532 Baden-Baden Phone: +49 7221 5007-204 Phone: +49 (0) 171 20 20 300 Email: investor@grenke.de Email: presse@grenke.de Internet:  www.grenke.com   Information and Explanation of the Issuer to this announcement: About GRENKE The GRENKE Group (GRENKE) is a global financing partner for small and medium-sized companies. As a one-stop shop for customers, GRENKE’s products range from flexible small-ticket leasing and demand-driven bank products to convenient factoring. Fast and easy processing and personal contact with customers and partners are at the centre of GRENKE’s activities. Founded in 1978 in Baden-Baden, the Group operates in 33 countries and employs more than 1,900 staff (measured in terms of full-time equivalents) worldwide. GRENKE shares are listed on the Frankfurt Stock Exchange (ISIN DE000A161N30). 02-March-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

Language:	English
Company:	GRENKE AG
	Neuer Markt 2
	76532 Baden-Baden
	Germany
Phone:	+49 (0)7221 50 07-204
Fax:	+49 (0)7221 50 07-4218
E-mail:	investor@grenke.de
Internet:	www.grenke.de
ISIN:	DE000A161N30
WKN:	A161N3
Indices:	SDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1573619

End of Announcement	EQS News Service

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