Q1 interim report January – March 2024

Solid cash position

Highlights first quarter 2024

• Gross ERC at the end of March 2024 was EUR 295m (280 at December 2023)
• Cash at the end of March 2024 was EUR 20.3m (20.7 at December 2023)
• Gross collections amounted to EUR 11.4m (10.0)*
• Net collections amounted to EUR 9.5m (8.0)*
• Cash EBITDA amounted to EUR 5.3m (4.4)*
• Erik Fällström appointed as CEO, replacing Razvan Munteanu

* Key financial highlights above include non-IFRS alternative performance measures that represent underlying business performance.

Comment by the CEO

I am very happy to have been appointed as CEO of DDM Debt in February 2024, and look forward to contributing my experience and track record as an entrepreneur and builder of businesses to the successful execution of the group strategy to build a broader, scalable, and more valuable diversified investment firm. I’m very pleased to lead the company and we are confident that this diversified strategy will benefit all stakeholders, opening access to a broader investor community and diversifying the group’s assets and competences.

The DDM Debt group ended the first quarter with a continued solid cash position of EUR 20.3m.

Outlook

The impact of higher interest rates and the increased cost of living is expected to continue to adversely affect credit quality in 2024, increasing pressure on banks to dispose of underperforming assets and likely resulting in an increase in loan portfolio sale activity from the second half of 2024. We will continue to actively manage our portfolio and be disciplined in the sourcing of new business, monitoring investment cases on both a strategic and opportunistic basis. 

Financial calendar

DDM Debt AB (publ) intends to publish financial information on the following dates:

Q2 report for January – June 2024: 29 August 2024

Q3 report for January – September 2024: 28 November 2024

Q4 report for January – December 2024: 27 February 2025

Other financial information from DDM is available on DDM’s website, www.ddm-group.ch.

Publication of the report

The report is available at www.ddm-group.ch on 30 May 2024, at 08:00 CEST.

The executive leadership of DDM are continuing to focus on the day-to-day management of the group, as well as carrying out a customary operational and strategic review. A communication process with investors will therefore be carried out in due course.

The information in this report requires DDM Debt AB (publ) to publish the information in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on 30 May 2024 at 08:00 CEST.

For more information, please contact:

Erik Fällström, Chief Executive Officer

Matthew Doerner, Chief Financial Officer

Mail: investor@ddm-group.ch

DDM Debt AB (publ) (Nasdaq Stockholm: DDM Debt 2026) is part of the DDM Group, a specialized multinational investor in situations arising out of the general strategic challenges in the European banking markets. This includes investments into assets and companies previously held by financial institutions, including performing and non-performing loans and special situations. The DDM Debt Group also engages in businesses that are related, complimentary, incidental, ancillary or similar to any of the foregoing. DDM strives to create value for its stakeholders by combining significant expertise in financial services, credit underwriting and technology with a focus on operational excellence.