DDM Holding publishes its Half-year report 2014 (January-June 2014)

First six months of 2014

Consolidated net revenues for the period January–June 2014 amounted to EUR 4.0M (0.9)

• Earnings (EBIT) amounted to EUR 1.5M (-1.6), including revaluations of purchased asset portfolios amounting to EUR 2.4M

• Operating margin (EBIT) was 27% (neg)

• Net result for the period amounted to EUR 0.9M (-3.5)

• Appointment of CFO, Mr. Olsson will join on 1 September

After date of the balance sheet

Issue of 2,600,000 new shares, total number of shares in DDM Holding AG amounts to 7,100,000 as of reporting date

• Listing on Nasdaq OMX First North on 5 August 2014

Excerpts from the Half-year report:

Comment by the CEO

Following the first quarter of 2014 with geopolitical turbulence and pressure on the Russian Ruble, the second quarter 2014 was characterised by two mile stone events. Firstly, preparations for the listing of DDM on Nasdaq OMX First North in Stockholm and secondly, increased portfolio investments.

We are very proud to have received such a significant level of interest in our company, resulting in a successful listing with first day of trading on the 5th of August. We would like to thank the investors that chose to place their trust in DDM and with whom we look forward to have a close and fruitful relationship.

During the second quarter 2014 we reengaged with investments in Russia and also made a first investment in Slovenia. During the first six months of 2014, DDM invested in portfolios to a total amount of EUR 7.1M.

DDM continues to focus on its historical core markets, Russia and Romania, and at the same time also dedicating efforts to the wider region of Eastern Europe where we see great potential and hope to announce further acquisitions and market entries in the coming period.

Earnings before depreciation and amortisation (EBITDA) period January–June 2014 amounted to EUR 4.0M. Operating earnings (EBIT) amounted to EUR 1.5M, and EBIT margin was 26.5%.

Accounting and reporting for DDM is in process of full conversion to IFRS from the current Swiss GAAP standard. During the period, DDM has made a voluntary amendment in its accounting policy. Previously, the distressed assets were recognised at cost less amortisation. Under the new accounting policy, these assets are recognised using the effective interest method similar to IFRS treatment.

In addition to these amendments, this interim report contains the consolidated cash flow statement and the consolidated statement of changes in equity.

I am pleased to welcome our new CFO, Mr. Fredrik Olsson, to DDM. He will join the company on 1 September 2014 and will be instrumental in driving the implementation of IFRS and related processes, as well as increasing disclosure to our investors.

For more information, please contact:

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

Gustav Hultgren, CEO of DDM
Tel: 46 8 4080 9030

DDM Holding AG (Nasdaq OMX First North: DDM) is a leading 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.