PRESS RELEASE
CHG-MERIDIAN does more business abroad
than in Germany for the first time

Euro-zone debt crisis curbs lease originations in Germany in first quarter

Steady growth in lease originations abroad offsets decline in German market

Mossakowski says reluctance to invest is extremely risky for companies.
Weingarten, May 02, 2013
For the first time in its history, technology manager CHG-MERIDIAN based in
Date: May 02, 2013
Weingarten, south-west Germany, has originated more leases abroad than in its home
market. Of the new leases totaling €191 million that were signed in the first quarter of
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2013 (Q1 2012: €195 million), €103 million were originated in the company's 18
Matthias Steybe
international markets.
The North American market, which accounted for over 60 percent of the growth in new
business, emerged as the powerhouse. “Lease originations were down by 2.5 percent
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D-88250 Weingarten
across the Group in the first quarter, but the fall was kept to a minimum by steady
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growth in our international business,” said Jürgen Mossakowski, chairman of CHG-
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MERIDIAN AG's management board. “By contrast, Germany was down by 10 percent
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on the prior-year quarter and initial industry trends in Germany indicate that new
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business was very modest overall. However, it is still too early to draw any conclusions
for the remainder of the year.”
Reluctance to invest is risky
This trend was also evident in the remarketing of used technology equipment, with the
company registering a slight fall from 96,000 assets in the first quarter of 2012 to
81,000 in the same period this year. However, the secure data erasure service put in an
encouraging performance as more customers opted for TÜV-certified data erasure of
their used equipment. Some 19,000 technology assets were erased in the first quarter
of 2013 compared with 16,000 in the first quarter of 2012.
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According to Mossakowski, the euro-zone sovereign debt crisis and the resultant
reluctance to invest was also reflected in an unwillingness to replace IT equipment and
other high-value technical equipment. Over the long term however, the chairman of the
«EFax»
management board said that this might prove to be the wrong strategy: “Companies
that focus on the latest technology have a competitive advantage. Foregoing it is
Betreff: Microsoft
Software
extremely
risky,
particularly in an economic slowdown.”
Successful internationalization strategy
CHG-MERIDIAN's quarterly results underscore the fact that it is on the right track with
the strategy of international growth that it has pushed ahead with since the turn of the
millennium. In 2012, it included the full integration of its joint venture in Mexico into the
Group. Just a few weeks ago, CHG-MERIDIAN also succeeded in obtaining a license
for its finance company in Brazil, South America's biggest and fastest growing market.
As well as its international strategy, the company also focuses on end-to-end
technology management that provides customers with customized business concepts
and technology and service solutions throughout the entire equipment lifecycle. CHGMERIDIAN has a workforce of over 700 spread around the world.
New IT trend continues
CHG-MERIDIAN has also noticed that the IT sector is changing. Market studies show
that the PC market collapsed once more at the beginning of the year. Instead of PCs,
customers are increasingly ordering tablets which are lighter, more flexible and also
cheaper. “Although this is a technological advance,” said Jürgen Mossakowski, “the
total amount per asset and therefore per contract is falling.” This trend is set to
continue, as is the need for large data centers to cope with the flood of data. By the end
of 2013, industry information services predict that some 150 million tablet PCs worth
US$ 64 billion will be in use. By comparison, traditional PCs are forecast to decline by
between 11.2 and 13.9 percent.
About CHG-MERIDIAN
Large and medium-sized companies and public-sector entities in 19 countries worldwide have entrusted CHGMERIDIAN with their advisory, financing, and other service needs in the field of technology portfolio management. With
a total workforce of more than 700 people – most of them employed at six locations in Germany – the company, which
is headquartered in Weingarten in south-west Germany, has leased assets worth approximately €2.5 billion under
management. What distinguishes CHG-MERIDIAN is its non-captive status with respect to banks and manufacturers,
enabling it to provide expert independent advice and financing solutions for technology management throughout the
entire lifecycle.