DDM Holding AG publishes its year-end report 2014 (January-December 2014)

Highlights fourth quarter 2014

• Gross ERC increased with EUR 3.9M to EUR 60.4M during the fourth quarter, up 7% compared to the third quarter 2014. This despite being impacted negatively by EUR 5.9M due to the weakness in the RUB.
• Net collections increased significantly in the fourth quarter and amounted to EUR 6.3M.
• Cash EBITDA amounted to EUR 4.8M.
• Russia significantly weighed on the quarter, primarily through unrealized FX losses of EUR 2.7M and EUR 1.5M of portfolio revaluations, bringing the total impact to EUR 4.2M.
• Portfolio acquisitions closed during the quarter amounted to EUR 3.0M.
• The Board proposes that the Annual General Meeting distribute no dividend for fiscal year 2014.

After date of the balance sheet
• After the end of the quarter DDM made its first acquisition in Hungary to pursue DDM’s strategy to actively seeking new markets to broaden its investment base as well as spreading currency and country specific risks.

Excerpts from the nine month report:

Comment by the CEO:

DDM continues to increase its ERC (Estimated Remaining Collections) through new investments. Gross ERC has increased 57% since the end of second quarter 2014 (the first reporting point) and increased 7% during the fourth quarter despite being impacted negatively by EUR 5.9M due to the weakness in the RUB. As a result of the increased investments net collections in Q4 2014 amounted to EUR 6.3M, an increase of 140% compared to Q3 2014, which is partly driven by some investments that has yielded collections faster than forecasted.

This resulted in a sharp increase in cash-EBITDA to EUR 4.8, an increase of 200% compared to the previous quarter, driven by higher net collections.

In addition to our recent expansion into Poland, Slovenia and the Czech Republic during 2014, in early February 2015 we entered into Hungary. This transaction was made in partnership with one of the world’s largest financial institutions and we see great opportunities for further profitable growth of our investment portfolio in Hungary

For more information, please visit DDM’s website at www.ddm-group.ch or contact:

Anders Antonsson, Investor Relations
Mail: a.antonsson@ddm-group.ch | Tel: 46 8 4080 9030

DDM Holding AG (Nasdaq First North Stockholm: DDM) is a multinational investor and manager of distressed assets. Since 2007, the DDM Group has built a successful platform in Eastern Europe, with over 2 million receivables in nominal value over EUR 1.4 billion. DDM Treasury Sweden AB (publ) (NGM: DDM1) is a subsidiary wholly owned by DDM Holding AG. Pareto Securities is DDM Holding AG’s Certified Adviser.


About Us

DDM Holding AG (First North: DDM) is a multinational investor in and manager of distressed assets, offering the prospect of attractive returns from the expanding Southern, Central and Eastern Europe market. Since 2007, the DDM Group has built a successful platform in Southern, Central and Eastern Europe, and has acquired 2.3 million receivables with a nominal value of over EUR 3.5 billion. For sellers (banks and financial institutions), management of portfolios of distressed assets is a sensitive issue as it concerns the relationship with their customers. For these sellers, it is therefore critical that the acquirer handles the underlying individual debtors professionally, ethically and with respect. DDM has longstanding relations with sellers of distressed assets, based on trust and the Company’s status as a credible acquirer. The banking sector in Southern, Central and Eastern Europe is subject to increasingly stricter capital ratio requirements resulting in distressed assets being more expensive for banks to keep on their balance sheets. As a result, banks are increasingly looking to divest portfolios of distressed and other non-core assets. DDM Holding AG, the Parent Company, is a company incorporated and domiciled in Baar, Switzerland and listed on Nasdaq First North in Stockholm, Sweden, since August 2014.