Leasing – Banking – Factoring 11. Structured FINANCE 2015 - Investionen in Lateinamerika - 25. November 2015, Stuttgart
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
Leasing – Banking – Factoring | Investor Relations 3
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*
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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
Leasing – Banking – Factoring | Investor Relations 6
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
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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
Leasing – Banking – Factoring | Investor Relations 8
“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)
Leasing – Banking – Factoring | Investor Relations 11
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
Leasing – Banking – Factoring | Investor Relations 12
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
Leasing – Banking – Factoring | Investor Relations 13
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
Leasing – Banking – Factoring | Investor Relations 14
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 | Investor Relations 15