DDM Treasury Sweden AB publishes its year-end report 2014 (January-December 2014)

Highlights fourth quarter 2014

• Net collections increased significantly in the fourth quarter and amounted to SEK 53.8M.
• Russia significantly weighed on the quarter, primarily through unrealized FX losses of SEK 19M and SEK 14M of portfolio revaluations, bringing the net result for the period to about SEK 33M.
• The equity covenant is met, despite the negative impact from Russia and the weakness in the RUB, by increasing the subordinated loan to the DDM Treasury group from other parts of the DDM group.

Excerpts from the year-end report:

Comment by the CEO
Net collections continued to grow during the quarter as a result of increased investments and amounted to SEK 53.8M in Q4 2014, which is an increase of 123% compared to Q3 2014. The increase is partly driven by some investments that has performed above expectations.

The Russian RUB has been volatile throughout the year, culminating in a dramatic foreign exchange rate movement in December. The immediate impact to our assets denominated in RUB during the fourth quarter of 2014 is SEK 33M. Whereof SEK 19M is FX losses, mainly unrealized, while in anticipation of longer-term effects on collectability we have made downwards revaluations of several Russian portfolios of approximately SEK 14M.

This resulted in a sharp decrease of the net result for the period to SEK -23.7M, compared to SEK -8.1M in the third quarter.

While macroeconomic uncertainties remain, Terms and Conditions of DDM Treasury’s bonds prohibit FX hedging and thereby limit possibilities to reduce FX related risk.

We continue to execute on our strategy to grow net collections, and deliver profitable returns as the leading regional investor and manager of distressed assets.

For more information, please contact:

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

DDM Treasury Sweden AB (publ) (NGM: DDM1) is a subsidiary wholly owned by DDM Holding AG. DDM Holding AG 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.

Tags: