Press release 13.11.2007

Nine-month report 2007

GFKL aiming at a new record year

Highlights

• 17 percent increase to EUR 860 million in nine-month revenues
• Earnings before taxes grow by 22 percent to EUR 23.6 million
  
  

Revenues and income

The consolidated revenues of GFKL Group increased by 17 percent during the first nine months 2007, reaching approximately EUR 860 million (previous year: EUR 734.3 million). Earnings before taxes rose by 22 percent to EUR 23.6 million (EUR 19.2 million).


Due to the Corporate Tax Reform Act 2008, GFKL’s “basic” tax rates will in future be cut from the current rate of approximately 40 percent by nearly 8 percent to 32 percent. This is good news in itself, but means that deferred tax assets had to be reassessed in the third quarter, thereby affecting earnings. Through this, tax was calculated in the third quarter at an exceedingly high one-off rate of more than 60 percent. Therefore, GFKL Group’s earnings after taxes slightly declined to EUR 14.0 million, compared to the previous year’s figure of EUR 15.2 million.


Segments

The volume of new leasing business grew by 21 percent in the first nine months, reaching a total of EUR 617.5 million (EUR 508.5 million). A share of 39 percent (EUR 241.7 million) of that volume has been contributed by GFKL’s foreign subsidiaries in the Benelux countries as well as England and Spain. Despite sustained investments in new markets (England, Spain) and in new products (factoring), earnings before taxes in the credit segment improved slightly by 3 percent, reaching EUR 10.6 million (EUR 10.3 million).


During the recently ended third quarter, the collection division exceeded the previous quarter’s revenues for the sixth time in a row. In all, this segment booked revenues of EUR 79.2 million at the nine-month mark, after EUR 36.7 million in the previous year. At EUR 17.4 million (EUR 7.7 million), earnings before taxes in this sector have also more than doubled. Responsible for this development were significant levels of sustained, organic growth and the takeover of companies whose products and market access complement the existing portfolio very well. GFKL took another major step in October as the company acquired a share of 48 percent each in two service companies of BAG Bankaktiengesellschaft in Hamm. The cooperation will focus on processing non-performing and written-off loans in the cooperative banking sector.


In the software segment GFKL also set a major new course by consolidating the software and consulting services for the insurance sector in the subsidiary GENEVA-ID. Thus, the company will be able to offer integrated solutions to customers in the insurance sector. The portfolio consists of scalable application products, business process outsourcing and individual IT projects.


During the first nine months of the business year, GFKL generated revenues of EUR 20.4 million (EUR 16.1 million) in the software segment and tripled its earnings before taxes from EUR 1.5 million to EUR 4.6 million. The second business segment with which GFKL is technologically expanding its core business areas leasing and collection is the systems segment. While revenues remained almost the same at EUR 106.5 million (EUR 105.0 million), earnings before taxes in this segment declined sharply by 21 percent to EUR 1.8 million (EUR 2.2 million). As already referred to in the announcements on the first half-year 2007, a basis effect from the previous year led to the decline when comparing the two nine-month figures.

 

Forecast

Dr. Peter Jänsch, chairman of the executive board of GFKL Financial Services AG: "Six weeks before the end of the year, the figures for the third quarter confirm that GFKL Group is heading for another successful business year. In recent years, GFKL has always even stepped up the pace during the final quarter. I am optimistic that we will also finish 2007 with an outstanding fourth quarter."


About GFKL Financial Services AG

GFKL is a fast-growing financial services provider focusing on leasing and collection services. The software and systems divisions are the technological extension of the business model. Thus, GFKL is able to assist clients in financing investments, organizing processes and implementing measures for safeguarding liquidity during every phase of the business process. During the business year 2006, GFKL generated consolidated revenues of one billion euros with 2,000 employees.



Press officer:

Katrin Schwarz

Head of Corporate Communications

and Investor Relations

Phone: +49 (0)201/102-1192

Facsimile: +49 (0)201/102-1102-462

E-mail: katrin.schwarz@gfkl.com

Internet: www.gfkl.com