Key Figures

The Board of Directors expects new leasing business of between EUR 3.0 billion and EUR 3.2 billion for the 2024 financial year. This corresponds to expected growth of between 15 and 23 percent compared to the 2023 financial year.

In the medium term, the volume of new business is expected to grow at a double-digit rate of around 12 percent on average. This growth assumption is based on a return to the growth trajectory.

In the 2024 financial year, we are aiming for a slight increase in the CM2 margin compared to the previous year. The medium-term goal is to achieve a CM2 margin of around 17 percent. Next to the average ticket size, the decisive factors for the CM2 margin are primarily our refinancing costs and our conditions in newly concluded leases. In the 2024 financial year, the average value per lease contract is expected to remain below the EUR 10,000 mark. The focus on small tickets remains a key part of our strategy.

Despite higher interest rates, the Board of Directors expects the operating income of the leasing portfolio – consisting of the sum of net interest income after settlement of claims and risk provision, profit from service business and profit from new business and gains and losses from disposals – to develop positively in the current 2024 financial year. This assessment is based on the continued strong momentum in the new leasing business as well as the consistent passing on of higher interest rates through contract conditions and continued risk-conscious pricing. We expect the good payment behaviour of our customers and the related stable level of expenses for risk provisions to continue, which will also have a positive effect. Higher staff costs will have an offsetting effect, as salaries have risen due to high inflation and we have plans to continue to add to our team in certain areas. In order to continue our successful international expansion strategy, we intend to invest EUR 15 million in each of the next two years in the digitalisation of our entire value chain in over 30 countries as planned. Particularly in the future core markets of Australia, Canada and the USA, the still

young grenke subsidiaries will be equipped with state-of-the-art infrastructure from the outset in order to optimally utilise the disproportionately high growth potential. The basis of the digitalisation programme is the transformation to cloud technology, which at one-third of investments represents the programme’s largest single measure. The remaining investment funds will be directed to the automation of all core processes in the leasing business.

The Board of Directors expects adjusted Group earnings in the range of EUR 68 million to EUR 76 million for the 2024 financial year (before: EUR 95 - 115 million). The adjusted expectation for the range of Group earnings in the 2024 financial year is based on the assumption that expenses for settlement of claims and risk provisioning will remain at the level of the third quarter.

The Board of Directors also expects an improved cost-income ratio for the 2024 financial year. Despite continuing to invest in the digitalisation programme as planned, we are aiming for a CIR of less than 58 percent in 2024. In the years that follow, the CIR is expected to reach a level below 55 percent thanks to efficiency gains and an increasing degree of digitalisation. In the long term, we are aiming for a cost-income ratio of 50 percent driven by the profitability of our new business, our sustainable growth and our digitalisation programme and strict cost discipline.

The Board of Directors also intends to continue the long-term dividend policy and is targeting a payout ratio of 25 percent for the 2024 financial year.

As a result of the new business development, total lease receivables, which are the basis for interest income, are also expected to grow in the high single-digit percentage range in the current financial year. Total assets will increase accordingly. As in previous years, for the 2024 financial year, grenke is anticipating an equity ratio of over 16 percent (2023: 19.8 percent) based on the expected development of Consolidated Group net profit.