Grenke (GLJ) Investor presentation summary

Business overview and strategy

• Global leader in small-ticket leasing, operating in over 30 countries with more than 2,300 employees and 720,000 active customers.

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

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

• Ambition to achieve a 10% return on equity by 2030 through selective portfolio growth, disciplined risk management, and digitalization.

• ESG targets include net zero emissions by 2050 and increased automation and green investments.

Financial performance and key metrics

• H1 2026 group earnings reached €32.6m, with operating income up 11% and cost-income ratio (CIR) improved to 51.6%.

• Leasing new business for H1 2026 was €1.6bn, with a solid performance despite weak investment activity and high insolvency levels.

• Total assets grew to €9.2bn by Q2 2026, reflecting ongoing portfolio expansion.

• Loss rate elevated at 2.0% due to macroeconomic challenges, above the historical average of 1.5%.

• Embedded value per share increased to €36.40 in 2025, indicating strong future earnings potential.

Operational efficiency and risk management

• Operating leverage improved, with income growth outpacing costs and CIR steadily declining.

• Cost discipline and efficiency measures resulted in slower cost growth compared to income.

• Risk provisions for non-performing loans increased, maintaining a stable coverage ratio of around 59%.

• Diversified funding mix supports financial stability, with senior unsecured, deposit business, asset-backed, and external bank funding pillars.

• Over 97% of new contracts are small tickets (<€50,000), supporting risk diversification.