increased investments and listing on nasdaq omx first north
TRANSCRIPT
Interim Report (1 January – 30 June 2014) Presenter: CEO, Gustav Hultgren
DDM Holding AG (Nasdaq OMX First North: DDM) and
DDM Treasury Sweden AB (publ) (NGM: DDM1)
Increased investments and listing on Nasdaq OMX First North
STRICTLY CONFIDENTIAL
This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our our company description for a better understanding of these risks and uncertainties. © DDM Holding AG 2014
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DDM A multinational investor and manager of distressed assets
Introduction 28 August 2014
DDM has since 7 years established
strong relationships with
international banks and financial
institutions in Europe to acquire
distressed asset portfolios.
With the Group’s focus on long-
term relations with customers, as
well as debtors, DDM is the
preferred partner to provide a
sustainable financial solution.
High growth opportunities
Unique, competitive business model
Strong financial track record
Highly experienced and committed management
(25+ years)
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DDM Building a strong and sustainable company
28 August 2014
2013- Leverage on the solid platform established Shift to institutional financing and establish an efficient, long-term, capital structure First senior secured bond issue completed in H1 2013 New share issue, listed on Nasdaq OM First North as of 5 August 2014
2007-2008 Replicating / improving a business model from Western Europe New markets / New sellers / New agencies First investments First external funding July 2008
Phase 1
Start up
2009-2012 Build team, process, IT system Leverage on data from initial investments Funding from family offices, hedge funds and high-net-worth individuals
Phase 2
Build up
Phase 3
Scale up
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DDM Equity issue and listing provides opportunities
28 August 2014
Proceeds from the issue of new shares will mainly be invested in distressed assets and to secure a more stable, secure and long-term capital structure Costs for equity issue, listing and related activities will be included in the Q3 report
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Expansion and penetration in Eastern Europe Geographical focus
Geographic scope: Eastern Europe
= DDM’s largest markets at present (Russia and Romania)
= Geographic focus (Eastern Europe)
= Company headquarters in Zug, Switzerland (tax efficient, close to key markets)
28 August 2014
63 31
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Romania
Russia
Slovenia
Other
Strong cash flow from Romania, %
Net cash flow Jan-Jun 2014: EUR 3.8M Total net collections Jan-Jun 2014: EUR 5.7M (4.1)
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The business model Knowledge builds our success
Acquisition of
distressed assetsCollection of debt through 3rd party
Acquisition and collection of distressed assets
Asset management
Value chain focus Invest, collect, report, repeat
Economies of scale
Operational flexibility
28 August 2014
Distressed assets
Consumer and corporate
assets
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Experience and flexibility DDM
Based in Zug, Switzerland and currently employs 18 FTE’s
First class team with direct industry and geographical experience
The DDM’s organization is geared for growth
28 August 2014
CEO Gustav Hultgren
Finance Fredrik Olsson*
IT Colin Jones
Operations Alexander Zwinger
Origination Dmitry Zadvornov
Transactions Konstantins Batrakovs
Portfolio Managers Analytics
DDM Invest X AG
DDM Invest IV AG
DDM Invest III AG
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Group overview DDM
28 August 2014
DDM Holding AG Switzerland
DDM Group AG Switzerland
DDM Invest II AG
DDM Investment SPV’s DDM Treasury Sweden
AB (publ) Sweden
DDM Invest XX AG Switzerland
100%
100% 100%
100%
Management, staff, IP, technology
Issuer Bond loan 2013
Listed on Nasdaq OMX First North
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Operational highlights Key developments
Introduction First six months 2014 28 August 2014
JANUARY – JUNE 2014
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Operational highlights Key developments
Market incl investments
Russia, largest by book value
Romania, strong cash flow
Slovenia, new market
Other markets, diversification
IPO for investments and improved capital structure
New CFO, Mr. Fredrik Olsson. Will take on the position as of 1 September
28 August 2014
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Financial highlights, January-June Key developments
DDM
Investments in portfolios, Jan-Jun 2014: EUR 7.1M (0.4) Full-year 2013: EUR 16.1M
Total net collection, Jan-Jun 2014: EUR 5.7M (4.1) Full-year 2013 : EUR 9.6M
Operating earnings (EBIT), Jan-Jun 2014 : EUR 1.5M (Neg) Full-year 2013: Neg.
EBIT margin: 26.5% (Neg) Full-year 2013: Neg
Accounting principles and IFRS migration, step by step
After the period: New issue and listing on Nasdaq OMX First North, costs to be included in Q3
Number of total shares: 7,100,000
28 August 2014
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DDM decides when and how to invest Portfolio investments
Investments in distressed asset portfolios (€m)
Established relationships with sellers in the consumer and commercial credit industry.
DDM has acquired 70 portfolios for an aggregate of EUR 75M at 30 June 2014
Primarily, DDM targets the credit card and point of sale loans segment
28 August 2014
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Continuing to grow Summary
Competitive business model
Strong network and longstanding relations with sellers
Outsourcing of debt collection activities – to top-tier agencies under the guidance of DDM
Funding structure
Bond, equity and other resources
Accounting
DDM to report according to IFRS as of 2015
Management
More than 50 years of combined industry experience
New CFO appointed
Strategy to grow and other key focus areas H2 2014
Increasing volume of distressed assets being offered to investors
Geographic diversification
28 August 2014
Summary Introduction First six months 2014
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Q&A Thank you for your attention
Third quarter interim report expected to be published on 28 November 2014
DDM Holding AG Schochenmühlestrasse 4
CH-6340 Baar Switzerland
Telephone: +41 41 766 1420 [email protected]