DDM Holding AG: Interim report January - June 2016

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News Desk 2018

Aug 11, 2016 at 2:15 AM

Significant investments continue and strong cash flows from existing portfolios Highlights second quarter 2016 · Net collections increased by 71% to EUR 6.0M (Q2 2015: EUR 3.5M) · Cash EBITDA increased by 102% and amounted to EUR 4.6M (Q2 2015: EUR 2.3M) · Loss for the period of EUR 0.5M (Q2 2015: loss of EUR 1.6M) · Gross ERC at the end of June 2016 was EUR 63.7M, an increase of 7% (Q2 2015: EUR 59.7M) · The recent Hungarian investment results in stronger cash flows · Share capital increase of 1,940,298 new shares was successfully completed in June, resulting in total cash proceeds of approximately EUR 7M (approx. SEK 65M) before transaction costs · Net loan repayments of EUR 2.5M · Pipeline of future transactions remains strong Highlights six months 2016 · Net collections increased by 51% to EUR 13.9M (H1 2015: EUR 9.2M) · Cash EBITDA increased by 75% and amounted to EUR 11.3M (H1 2015: EUR 6.4M) · Loss for the period of EUR 0.4M (H1 2015: loss of EUR 1.3M) Significant events after the second quarter · The largest investment in the history of DDM was completed in July, with EUR 17M invested in Slovenia · New bond of EUR 11M at 13% interest was issued in July to finance the investment in Slovenia Comment by the CEO I am proud that our continued hard work and dedication to grow DDM by investing in new portfolios and maximizing returns from existing investments is paying off. This was demonstrated by the acquisition of the largest investment ever shortly after the end of the second quarter. Net collections in the second quarter of 2016 increased by 71% compared to the second quarter of 2015 as a result of the recent acquisitions in Hungary and the Czech Republic, while for the first six months of 2016 net collections increased by 51%. Cash EBITDA (net collections less operating expenses) for the second quarter amounted to EUR 4.6M, an increase of 102% compared the same period of 2015. For the first six months of 2016 cash EBITDA was EUR 11.3M, an increase of 75% compared to the first six months of 2015. Gross ERC (Estimated Remaining Collections) at the end of the second quarter of 2016 was EUR 63.7M and increased by 7% compared to the same period in 2015, due to the recent acquisitions in Hungary and the Czech Republic. Cash flow from operating activities before working capital changes was EUR 2.9M in the second quarter, compared to EUR 1.7M for the same period last year, benefitting from the first cash flows received in early May from the recent Hungarian acquisition. Cash flow from operating activities before working capital changes for the first six months of 2016 was EUR 7.2M, compared to EUR 3.9M for the same period in 2015. On the back of the improved cash flows, net loan repayments of EUR 2.5M were paid during the second quarter of 2016. After the end of the second quarter DDM completed a landmark transaction in Slovenia. The new portfolio consists of non-performing banking claims with a total investment value of approximately EUR 17M with a gross ERC of more than EUR 34M, growing total ERC by 53% compared to 30 June 2016. This makes it the largest portfolio acquired by DDM where we hold 100% of the portfolio. The portfolio will contribute significantly to our results and cash flow starting in Q3 2016. During the second quarter of 2016 we successfully completed a share capital increase of 1,940,298 new shares at a price of SEK 33.50 per share, resulting in total cash proceeds of approximately EUR 7M (approximately SEK 65M) before transaction costs. The proceeds from the new shares issued along with a new bond of EUR 11M were used to fund the Slovenian acquisition. The new bond at 13% interest matures in 12 months and will be repaid during the period. Market outlook We continue to see strong growth in the pipeline of portfolios for sale across our region. DDM continues to receive a significant number of invites to bid for large portfolios and we are well placed to continue the rapid expansion in our investment activities. Given the large amount of investment opportunities, funding continues to be a key focus to sustain growth. We are targeting a long-term and sustainable capital structure and costs. Following the recent successful equity and debt issuances, we remain positive on the outlook for DDM and feel confident that we will be able to continue to grow the DDM Group. The information in this Interim Report requires DDM Holding AG to publish the information in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on 11 August 2016 at 8:00 a.m. CET. For more information, please visit DDM’s website at www.ddm-group.ch or contact: Gustav Hultgren, CEO Mail: investor@ddm-group.ch | Tel: 46 8 4080 9030 DDM Holding AG (Nasdaq First North Stockholm: DDM) is a key acquirer and manager of distressed assets. Since 2007, the DDM Group has built a successful platform in Eastern Europe, currently managing 2.3 million receivables with a nominal value of over EUR 2.1 billion. DDM Treasury Sweden AB (publ) (NGM: DDM1) is a subsidiary wholly owned by DDM Holding AG. Erik Penser Bank is DDM Holding AG’s Certified Adviser.

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