Grenke (GLJ) investor relations material

Business overview and strategy

• Global leader in small-ticket leasing, operating in over 30 countries with more than 120 locations and 2,300 employees worldwide.

• Focuses on SMEs, offering diversified leasing solutions across IT, office, medical, green economy, and machinery sectors.

• Strategic partnerships, such as with Intesa Sanpaolo in Italy, support international growth and market penetration.

• Emphasizes process optimization, selective growth, and efficient capital allocation to drive sustainable value.

• Targets a 10% return on equity by 2030, leveraging a strong capital base and disciplined cost management.

Financial performance and key metrics

• Achieved group earnings of EUR 71.8m in 2025, in line with guidance, with operating income up 14.7% and cost-income ratio improved to 55.2%.

• Leasing new business reached EUR 3.3bn, with over 1.1 million contracts and 720,000 active customers.

• Embedded value per share increased to EUR 36.40, reflecting a highly predictable earnings stream.

• Maintained a stable dividend policy with a 25% payout ratio and a proposed dividend of EUR 0.42 per share for 2025.

• Strong cash position and diversified funding mix, including benchmark bonds and global loans, support future growth.

Risk management and capital allocation

• Loss rate elevated to 1.7% in 2025 due to challenging macroeconomic conditions, but risk provisions and coverage ratios remain stable.

• Equity ratio at 15.6%, with sufficient headroom for continued growth and no capital increase planned in the mid-term.

• Cost efficiency measures and digitalization have led to a significant reduction in the cost-income ratio.

• Capital allocation is focused on expanding new business, optimizing margins, and minimizing credit risk.