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From ABS-Bond to volume of leased assets – in our GRENKE glossary you can find the explanation of different terms.



Abbreviation for "Asset-backed commercial paper programme". Under ABCP programme, companies such as leasing companies sell their receivables to a special-purpose entity which issues interest-bearing securi-ties to investors through the capital market. Interest and the principal payments on these securities are made using the cash flows from the assigned receivables on these securities.


Type of refinancing with which several tranches of bonds with different ratings (risk classes) are issued by the SPE. The share of the best-rated tranche is a reflection of the quality of a company’s leasing portfolio and risk management and directly impacts the cost of this type of financing.

Asset based loans

Asset-based loans are loans secured by leasing receivables. Here, future leasing receivables are sold to a bank and the present value is paid out to GRENKE. The bank is thus entitled to the future leasing instalments.


GRENKE sells used leased assets in Germany, France, Austria, Switzerland and Italy via its internet portal Asset-Broker. Our resellers can also use the portal to sell their own demonstration equipment or used goods.

Average number of employees per FTE (Full-Time-Equivalent)

This is the average number of employees in the GRENKE Group within the reporting period according to full-time equivalents. Members of the Executive Board are not included. Part-time employees are taken into account on a pro-rata basis for the calculation of full-time equivalence.

Average number of employees per headcount

This is the average number of employees in the GRENKE Group within the reporting period on the basis of headcount. Members of the Executive Board are not counted. No distinction is made between full-time and part-time employees.



German Leasing Association "Bundesverband Deutscher Leasingunternehmen e.V." BDL, Berlin.


Commercial papers (CPs)

Commercial papers are a short-term financial instrument with a term of between 1 and 364 days. CPs do not have a separate interest payment, as they are issued at a discount. They are redeemed at full face value.

Contribution margin (CM)

The contribution margin, also known as gross profit, is a term used in operational cost accounting. The contribution margin is the contribution made, for example, by a product to cover fixed costs and generate a net profit. It is calculated as the difference between revenues and variable costs incurred directly by the product.

At GRENKE, contribution margin 1 is calculated as the present value of the interest surplus net of commissions to third parties. Contribution margin 2 is made up of the present value of operating income of a lease contract less cost of risk, profit from service business and gains/losses from disposals.

Cost/income ratio

The cost-income ratio is the quotient of total operating expenses and total operating revenues.



The "German Corporate Governance Kodex (German Corporate Governance Codex)”, presents essential statutory regulations for the management and supervision of German listed companies and contains internationally and nationally recognised standards of good and responsible corporate management in the form of recommendations and suggestions.


The debt issuance program is a flexible refinancing programme with standardised documentation. It enables issuers to cover their financing needs by borrowing in various currencies and volumes and with varying terms of at least one year.


DIP-bonds, or bonds, are issued on the stock exchange or over-the-counter as part of the Debt Issuance Programme. The interest rate is fixed or floating. Depending on the volume, one or more dealer banks (dealers) are responsible for sales. The participating banks generally do not assume any takeover obligation. The placement risk remains with the issuer.



Earnings before interest and taxes


Earnings before taxes.

Embedded Value (excluding equity before taxes)

The embedded value (excluding equity before taxes) and the embedded value (including equity after tax) differ in that the future earnings potential from the leasing contract portfolio is not added to the equity shown in the balance sheet and is considered without taking taxes into account.

Embedded Value (including equity after taxes)

In IAS/IFRS accounting, the income from a lease agreement is distributed over the term of the agreement. A large part of the profit from the contract portfolio at a balance sheet date is therefore in the future. For this reason, future earnings potential from the leasing contract portfolio is disclosed as additional capital via the embedded value and added to the equity capital on the balance sheet, so that the actual substance of a company becomes apparent. The future earnings potential is determined by comparing the discounted income and expenses associated with the leasing contracts, while hidden reserves being revealed. In this calculation, taxes are taken into account.


The eSignature is the signature solution of GRENKE. The free service for retail partners and customers simplifies the conclusion of financing contracts. The documents are sent electronically and signed with a legally valid signature.  



Factoring is a financial service for the purpose of short-term sales financing. The factor buys the factoring customer‘s receivables due from its debtor and collects them directly from the debtor. In return for relinquishing the receivables, the factor immediately pays the factoring customer a sum based on the value of the receivable.

Federal Financial Supervisory Authority (BaFin)

The Federal Financial Supervisory Authority (BaFin) combines the supervision of banks and financial service providers, insurers and securities trading in Germany. 

Franchise system

In this distribution system the franchiser grants his partners a licence to operate a business independently and, among other things, takes over the delivery of goods and advertising himself. The basis of the system is a franchise agreement, which defines in detail marketing, business policy, product range and much more. The legally independent franchisee thus benefits from a well-known company name and many years of experience in distribution. The franchisor can sell his products or services on additional markets without having to invest his own capital.


GRENKE Consolidated Group

GRENKE Consolidated Group, i.e. GRENKE AG including its consolidated subsidiaries and structured entities in accordance with IFRS standards


GRENKE Group, i.e. the Consolidated Group including its franchise partners.

Global loan

Global loans are loans from the state banks with special tasks or from the KfW, which provide loans at reduced interest rates to GRENKE to stimulate the economy. This interest advantage is converted into a percentage promotion advantage and made available to the leasing customer as a contribution upon conclusion of a leasing contract with promotion voucher.


Hybrid Bond

A hybrid bond is a subordinated bond and a hybrid between equity and debt. It has the characteristics of both equities and bonds and is similar to equity for the issued company. The term is unlimited and the bond often carries a relatively high interest rate, as coupon payments may be waived in whole or in part at the issuer's discretion.



The International Financial Reporting Standards (IFRS) are external reporting regulations developed by the International Accounting Standards Board (IASB), an independent private body. The IFRS, formerly known as the International Accounting Standards (IASs), comprise the standards themselves and the interpretations by the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). As of fiscal year 2005, the application of these standards is compulsory for publicly traded companies with their registered office in the European Union (EU) in the form endorsed by the EU. It should be noted that standards and interpretations published under the designation "IAS" or "SIC" are still valid unless they have been replaced by new IFRS standards or IFRIC interpretations.


Lifetime Expected Credit Loss (LT ECL) and 12 Month Expected Credit Loss (12M ECL)

The Lifetime Expected Credit Loss corresponds to the amount of loss initially calculated over the entire term of a lease agreement and/or a portfolio or other asset within the scope of IFRS 9, where the Group aims to minimize the deviation of expected losses from realized losses.

The 12-month expected credit loss corresponds to the amount of loss initially calculated for a lease and/or portfolio or other asset within the scope of IFRS 9 over a period of twelve months, whereby the Group aims to minimise the deviation of expected losses from realised losses.

Loss ratio

The loss ratio is the quotient of expenses for claims settlement and risk provisioning and the rental volume.



The MDAX share index (derived from Mid-Cap-Dax) contains the shares of the 60 largest and most liquid companies from classic sectors below the DAX (which comprises 30 shares). These can be both German and foreign companies - as long as they are listed in the Prime Standard. GRENKE AG was first listed in the SDAX (which comprises the 70 largest and most liquid companies below the MDAX). With effect from June 24, 2019, the company was added to the MDAX.

Master lease agreement (MLA)

Customers who invest regularly in new equipment conclude a master lease agreement with GRENKE and benefit from standardised, attractive terms within that framework. The agreed leasing volumes can be drawn in individual tranches by customers. Hence, customers benefit from favourable terms, lower costs and greater flexibility. The customer‘s reseller is informed of the framework agreement, giving him additional options for increasing business with this customer.

Mean acquisition value

The mean acquisition value is determined as the arithmetic mean of the acquisition costs of all leased as-sets for which lease agreements were concluded in the reporting period.


Listed companies with medium sized market capitalization.

Money market

Money market is an unsecured short-term financial instrument that allows the borrower to borrow money at short notice and repay it on the due date plus a predetermined interest rate.


New Business

New business comprises the acquisition costs of all newly acquired assets from leasing and lease-purchase contracts,the factoring volume and the SME lending business  in the reporting period.

Non-financial Statement

EU Directive 2014/95/EU or §§ 289b ff. HGB and sections 315b et seq. HGB require capital market-oriented companies to publish a non-financial statement. GRENKE AG meets this reporting obligation with a separate chapter in the annual report.


Prime Standard

The Prime Standard is a listing standard of the Frankfurt Stock Exchange with transparency requirements for issuers which exceed those of the General Standard (e. g. quarterly reports have to be published and all corporate communication must also be available in English). A listing in the Prime Standard is a requirement for a listing on one of Deutsche Börse‘s selective indices such as the DAX, MDAX, TecDAX, or SDAX.



Rating agencies rate the creditworthiness of an issuer over long and short-term periods using a standard rating method. "AAA", for example, is the highest solvency rating, and "C" or "D" indicates a low probability of payment. The leading rating agencies are Moody‘s,Standard & Poor‘s and Fitch.

Registered Share

Class of shares registered in the name of the shareholder where the owner is entered in the Company's share register with his or her name, date of birth and address (Section 67 of the German Stock Corporation Act (AktG)).

Revolving Credit Facility (RCF)

Revolving credit is the term used for loans that can be drawn down repeatedly by the borrower up to the maximum amount of a credit line within the term of the loan in varying amounts, even if full or partial repayments have been made in the meantime. 


Scrip Dividend

When companies issue SCRIP dividends, it means they are giving investors the option to receive additional shares instead of a cash dividend.

Share of corporate customers in lease portfolio

We define corporate customers as lessees who are not subject to specific protection rules for consumers. The figure relates to the number of newly concluded lease contracts during the reporting period.

Stock Split

A stock split divides a company's current stock into a larger number of shares. 


Volume of leased assets

The volume of leased assets is the total of all (historical) acquisition costs of assets from ongoing leasing and lease purchase agreements.