Q4 and full year report January – December 2022

Significant increase of operating profit in 2022

Highlights fourth quarter 2022

• Gross collections amounted to EUR 16.6m (18.7)*
• Net collections amounted to EUR 14.4m (15.3)*
• Cash EBITDA amounted to EUR 10.6m (11.8)*
• Net profit for the period of EUR 0.1m (0.1)*
• Gross ERC at the end of 2022 was EUR 284m (299 at December 2021)
• Cash at the end of 2022 was EUR 52.6m (65.5 at December 2021)

Highlights full year 2022

• Gross collections amounted to EUR 71.9m (61.7)*
• Net collections amounted to EUR 62.3m (50.1)*
• Cash EBITDA amounted to EUR 50.6m (38.9)*
• Net loss for the period of EUR 5.0m (loss of 2.9)* including EUR 1.9m non-cash negative mark-to-market impact from the investment in Addiko Bank
• Investment in a bolt-on portfolio in Croatia with a gross collection value (face value) of over EUR 20m
• Strategic partnership in Italy with co-investment in a portfolio with a gross collection (face value) of over EUR 10m
• Acquisition of 50.2% of AxFina Holding S.A, a pan European debt servicing provider and business outsourcing company

Adjusted gross collections (which include the incremental gross distribution from joint ventures) amounted to EUR 16.6m in the fourth quarter of 2022, EUR 2.1m below the corresponding period last year. After deducting commission and collection fees to third parties this resulted in EUR 14.4m of adjusted net collections being received for the fourth quarter of 2022. The net profit for the fourth quarter of 2022 turned to a positive EUR 0.1m in line with the net profit of EUR 0.1m for the corresponding period in the prior year.

Cash at 31 December 2022 amounted to EUR 52.6m, supporting our future growth including the planned investment into Nordiska. Additionally, DDM entered into a super senior lending facility of EUR 4.5m with a Swedish bank in February 2023.

Comment by the CEO

“Despite the precarious circumstances in the European economy and the geopolitical uncertainties, 2022 was a good year for DDM. Net collections (including net distributions from joint ventures) increased by 24% and operating profit increased by 27% compared to 2021, showing the resilience of our underlying NPL portfolios. For 2023 the key event for DDM will be the closing of the Nordiska/Swiss Bankers/Omnio transaction, which we expect to occur within the next few weeks.” said Florian Nowotny, CEO of DDM.

Financial calendar

DDM intends to publish financial information on the following dates:

Annual report 2022:                                                          28 April 2023

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

Presentation of the report

The report and presentation material are available at www.ddm-group.ch on 28 February 2023, at 08:00 CEST.

CEO Florian Nowotny will comment on the DDM Group’s results during a conference call on 28 February 2023, starting at 10:00 CEST.

If you wish to participate via webcast, please use the link below. Via the webcast you can ask written questions.

https://ir.financialhearings.com/ddm-holding-q4-2022

If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. 

https://conference.financialhearings.com/teleconference/?id=5002908

The information in this 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 28 February 2023 at 08:00 CEST.

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

Florian Nowotny, Chief Executive Officer
Tel: +43 664 100 1243

Fredrik Olsson, Chief Financial Officer
Tel: +41 79 331 30 17

Mail: investor@ddm-group.ch

DDM Holding AG (Nasdaq First North Growth Market, Stockholm: DDM) is 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. 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. DDM Holding AG is domiciled in Switzerland and was founded in 2007. DDM Debt AB (publ) (Nasdaq Stockholm: DDM DEBT 2026) is a wholly owned subsidiary of DDM Holding AG. Arctic Securities is DDM Holding AG’s Certified Adviser, address: Regeringsgatan 38, 111 56, Stockholm, Sweden, e-mail: certifiedadviser@arctic.com, tel: +46 8 44686100.

Tags: