Slides
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1 Earnings Call First Half-Year 2025 Dr Sebastian Hirsch, CEO Dr Martin Paal, CFO August 14, 2025 grenke AG Investor Relations
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Highlights 2 Dr Sebastian Hirsch CEO grenke AG Investor Relations
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3 Macro Environment H1 2025 Market Trends Widely stable market conditions in the leasing sector Continuously high demand for leasing solutions among SME Investment drive towards further digitalization unbroken Economic Development Volatile global trade due to US customs policy Further interest rate decrease in Eurozone as inflation stabilized Number of insolvencies among SME surpassed peak Easing of inflationary pressure grenke AG Investor Relations
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4 Highlights H1 2025 Leasing Strong leasing new business of EUR 1.6bn at CM2 margin of 17.3% Cooperation with INTESA results in first new contracts Customer base grows steadily (>700k customers) Lease receivables close to 7bn Operations Successful placement of next benchmark bond (EUR 500m) Strategic acquisition to enhance grenke platform Operating income grew steadily in H1 Development of costs and risk provisions in line with plan grenke AG Investor Relations
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5 Highlights H1 2025 Franchise acquisition Agreement reached on acquisition of all outstanding franchise companies Takeover of Chile already concluded Closure on remaining franchisers to be reached shortly Factoring sale Sale of factoring business to Teylor proceeds according to plan Transfer of Polish subsidiary completed Sale process expected to be concluded by mid-2026 grenke AG Investor Relations
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6 Key Figures as expected H1 2025 vs H1 2024 Risk grenke AG Investor Relations Operating Income Cost Growth CM2 17.3% (16.7%) Profitability EUR 1.6bn EUR 1.5bn H1 2025 H1 2024 Leasing New Business EUR 26.2m EUR 45.0mGroup Earnings Equity Ratio 15.9% (16.1%) Stable Equity Loss Rate 1.7% (1.1%) CIR 56.4% (57.1%) vs Dec. 31, 2024
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7 Group Earnings Show Positive Trend in Q2 Development since Q1 2024 In EURm Group Earnings 19.8 25.2 12.0 13.2 10.2 16.0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025e Q4 2025e grenke AG Investor Relations
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8 Dr Martin Paal CFO grenke AG Investor Relations Financials
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9 Strong Leasing New Business and CM2 Margin 16.9 16.5 16.1 16.8 16.6 17.0 17.4 17.6 17.1 650 591 730 670 790 739 858 741 867Leasing New Business (in EURm) 59.5 Q2 2023 57.0 Q3 2023 59.1 Q4 2023 58.1 Q1 2024 56.3 Q2 2024 60.8 Q3 2024 64.4 Q4 2024 56.8 Q1 2025 56.1 Q2 2025 CM2 Margin (in %) Cost-Income Ratio (in %) grenke AG Investor Relations
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Profit from new and service business1 Net interest income 10 Effects of Defaults Stabilized on Elevated Level P&L Statement H1 2025 In EURm Income from operating business Total operating expenses 138.5 Operating result before settlement of claims and risk provision -94.7 Result from claims settlement and risk provision -7.3 Other operating income/costs2 Operating result -3.0 Other financial result3 -7.4 Income taxes (Tax rate at 22.0%)4 Group Earnings 317.8 36.5 26.2 +20.0 +39.7 -21.9+1.2 +2.2 -5.2 -18.8 Notes: 1) Incl. gains(+)/losses(-) from disposals; 2) Incl. impairment of goodwill 3) Incl. income/expenses from fair value measurement; 4) incl. deferred taxes Change H1 2025 vs H1 2024 (in EURm) +39.1 +19.0 Depreciation Staff costs Selling and admin expenses 116.9 -179.2 -104.6 -62.7 -12.0 200.8 grenke AG Investor Relations CIR: 56.4% (H1 2024: 57.1%) Rounding differences may occur
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11Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 2025e 55.7 26.7 63.7 28.3 62.0 37.8 53.6 38.2 67.0 47.6 71.5 47.1 Operating Result before Settlement of Claims & Risk Provision Settlement of Claims & Risk Provision Stable Settlement of Claims and Risk Provision while Operating Result Grows ILLUSTRATIVE In EURm grenke AG Investor Relations
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12 Strong Cash Position Provides Liquidity for Future Growth Cashflow Statement H1 2025 696.9 H1 2024 1,380.1 Payments by lessees -1,781.4 Repayments of refinancing (excl. deposit business) -26.1 1.0 Cash flow from financing activities Currency adjustments Cash and cash equivalents as of 30/06/2025 Cash flow from investing activities 24.5 Cash flow from operating activities -22.9 Other cash flow from operating activities 28.6 Investments in new lease receivables -1,641.6 Net addition to deposit business 133.1 Cash and cash equivalents as of 31/12/2024 Addition of new refinancing (excl. deposit business) 973.4 949.9 1,858.4 Cash flow from existing business -401.3 1,262.0 -1,462.9 -200.9 1,520.7 37.7 -1,499.7 78.8 -63.3 -2.6 -65.7 0.2 565.5 In EURm grenke AG Investor Relations H1 2025
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13 Diversified Funding Mix as of June 30, 2025 S&P Rating: BBB/stable/A-2 November 2024; Fitch Rating: BBB/stable/F2 June 2025 4 Debt Pillars DIP bonds CPs Promissory Notes RCFsDeposit Global loan ABCP Assset based loans Total Equity Equity AT1 Bonds Senior unsecured EUR 2,798m 34% grenke Bank EUR 2,299m 28% Asset backed EUR 1,199m 14% External bank funding EUR 715m 9% Total equity EUR 1,335m 16% grenke AG Investor Relations New Benchmark Bond of EUR 500m launched in May 2025
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Outlook 14 Dr Sebastian Hirsch CEO grenke AG Investor Relations
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15 H1 Performance as Expected, Guidance 2025 Confirmed Risk grenke AG Investor Relations Operating Income Cost Growth CM2 > 16.5% Profitability EUR 1.6bn EUR 3.2 – 3.4bn H1 2025 Guidance 2025 Leasing New Business EUR 26.2m EUR 71 – 81mGroup Earnings Stable Equity CM2 17.3% H1 2025 2025e CIR < 60% CIR 56.4% Loss Rate 1.6% Loss Rate 1.7% Equity Ratio 16% Equity Ratio 15.9% Jun. 30, 2025 2025e
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16 With Positive Earnings Trend in Q2 on Track for 2025 Key Take Aways Continuous growth of operating income Stable risk provisions Solid funding structure with further Benchmark Bond Increased cost efficiency grenke AG Investor Relations
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17 Thank you for your attention. Your questions please. grenke AG Investor Relations
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18 Get in Touch with Us Financial calendar – upcoming events Visit our Investor Relations Website Investor Relations Team Phone: +49 7221 5007-8611 Email: investor@grenke.de Internet: www.grenke.com grenke AG Neuer Markt 2 76532 Baden-Baden Germany 13.11. Quarterly Statement for Q3 and Q1-Q3 2025 02.10. New Business Figures Q3 2025 grenke AG Investor Relations
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19 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 aforward- looking statement. These statements are based on planning figures, estimates and forecasts currently available to the Board of Directors of grenke 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. This document is not for publication or distribution, directly or indirectly, in or into the United States. This document does not constitute or form part of an offer of securities or subscription rights for sale or solicitation of an offer to purchase securities or subscription rights in the United States, Canada, Australia, Japan or in any other jurisdiction where such offer may be restricted. The securities and subscription rights referred to in this document have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to or for the account or benefit of USpersons (as such term is defined in Regulation S under the Securities Act), except on the basis of an applicable exemption from registration or in a transaction not subject to the registration requirements of the Securities Act. There will be no public offering of securities and subscription rights in the United States or anywhere else, except for Germany. grenke AG Investor Relations
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20 Appendix grenke AG Investor Relations
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CIR Improved by Higher Income and Stabilized Costs Cost Income Ratio H1 2025 21 H1 2025 vs (H1 2024) in EURm 10.2 (4.6) 31.4 (29.2) 75.3 (68.4) 200.8 (176.5) 54.5 (44.9) 12.0 (12.6) 104.6 (94.9) 8.2 (6.8) = Staff cost Depreciation IT project cost Other selling and administrative expenses Net interest income Profit from service business Profit from new business Gains (+) / losses (-) from disposals 179.2 317.8 + + + + + Rounding differences may occur + Q1 2025 CIR: 56.4% (57.1%) CIR improved by 0.7 pp to 56.4% (H1 2024: 57.1%) CIR improvement driven by strong income development and stabilized cost development On target for 2025 guidance grenke AG Investor Relations
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22 Level 3 Impacted by Portfolio Growth and Higher Defaults 1.2% 1.1% Ratio covered lease receivables through risk provisions Level 2 Level 3 45.4 71.3 51.5 49.9 421.7 336.8 Level 1 20.5 26.6369.0 39.3 Dec 31 2024 430.3 44.7 Jun 30 2025 +16.3% Dec 31 2024 Jun 30 2025 71.8 71.9 +0.1% Dec 31 2024 Jun 30 2025 37.0 36.3 -1.9% Risk provisions on balance sheet by stage of impairment (in EURm) (Jun 30, 2025) Impairment for non-performing loans (in EURm) (Jun 30, 2025) 9.4% 8.8% 58.5% 58.6% Dec 31 2024 Jun 30 2025 6,516.2 6,901.2 +5.9% Lease receivables (in EURm) grenke AG Investor Relations Development of Lease Receivables Impairment for non- performing loans in level 3 increased to EUR 430.3m (Dec 31, 2024: EUR 369.0m) Reason is a higher number of defaults as well as growing lease receivables Loss Rate of 1.7% in H1 2025 in line with expectation (H1 2024: 1.1%) Guidance for Loss Rate 2025: ~ 1.6%
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23 Over 97% of New Contracts are Small Tickets Small Tickets defined as <50,000 EUR, Q2 2025 (vs Q2 2024) CM2 IN EURm CM2-MARGIN IN % 42.3 (33.2) 106.4 (97.9) 15.2 (15.1) 18.1 (17.1) CM2 In EURm > 50k EUR < 50k EUR 2,712 (2,260) 279.2 (220.3) 589.2 (570.6) Leasing New Business Volume in EURm 97% 68% 72% CM2 Margin In % Leasing New Business In No. of Contracts grenke AG Investor Relations 85,480 (84,436)
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24 Fostering International Growth Through Strategic Partnership Locazione Growth No. 7 in Italy No. 1 in Italy No.1 Bank in Italy > 2,000 Bank branches ~ 1.2m business customers World leading Small Ticket Leasing No.1 in Italian rental market ~ 120k customers in Italy First contribution to new business and P&L effects expected as of 2026 grenke AG Investor Relations