Grenke (GLJ) Investor presentation summary

Business overview and strategy

• Global leader in small-ticket leasing, operating in over 30 countries with 720,000 active customers and more than 1.1 million running contracts as of Q1 2026.

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

• Strategic partnerships, such as with Intesa Sanpaolo and KfW, support international growth and funding diversification.

• Emphasis on process optimization, selective growth, and leveraging a strong capital base to achieve a 10% RoE target by 2030.

• ESG initiatives target significant reductions in greenhouse gas emissions and increased automation and green investments.

Financial performance and key metrics

• Q1 2026 group earnings reached EUR 15.5m, with operating income up 10.2% and cost-income ratio improved to 52.6%.

• Leasing new business volume for Q1 2026 was EUR 786m, showing 4.2% growth year-over-year, mainly driven by Germany, France, and Italy.

• CM2 margin improved to 16.1% in Q1 2026, reflecting higher expected credit losses and normalization after ECB rate changes.

• Loss rate remained elevated at 1.9%, with risk provisions for non-performing loans increasing to EUR 478m.

• Embedded value including equity rose to EUR 1.6bn, or EUR 36.40 per share, indicating strong future earnings potential.

Funding, capital structure, and shareholder information

• Diversified funding mix includes senior unsecured bonds, deposit business, asset-backed funding, and external bank funding.

• Recent benchmark bond issuance of EUR 500m and new credit facilities support business expansion.

• Equity ratio stands at ~15%, providing sufficient capital for continued growth.

• Stable dividend policy with a payout ratio of 25% and 2025 dividend per share at EUR 0.42.

• Free float represents 59.16% of shares, with the remainder held by major stakeholders.