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2016-05-12

DDM Holding AG: Strong net collections from recent acquisitions

Highlights first quarter 2016
- Net collections increased by 39% to EUR 7.9M (Q1 2015: EUR 5.7M) ?
- Cash EBITDA increased by 60% and amounted to EUR 6.6M (Q1 2015: EUR
4.2M) ?

- Profit for the period of EUR 0.1M (Q1 2015: profit of EUR 0.2M) ?
- Gross ERC at the end of March 2016 was EUR 70.9M (Q1 2015: EUR
63.8M) ?

- New portfolio acquired in the Czech Republic ?
- Secured additional debt financing in Q1 to fund the portfolio
acquisition ?

- Pipeline of future transactions remains strong
Significant events after the first quarter ?
- The recent Hungarian transaction closed at the end of April 2016,
with the first cash flows from collections received in early May

Comment by the CEO
Following the largest transaction in DDM's history at the end of 2015,
the first quarter of 2016 has involved significant work on the
implementation of the Lombard transaction ahead of the closing, which
took place at the end of April 2016 after receiving the approval from
the Hungarian National Bank.

During the quarter we have also continued to deliver on our investment
strategy in CEE with the acquisition of a new portfolio in the Czech
Republic. This was the second portfolio we have acquired from the
seller, confirming our transaction capabilities and DDM as a
reputable buyer. This was largely funded by additional debt financing
of EUR 4M in the quarter which was secured to fund the portfolio
acquisition.

As a result of the recent acquisitions, net collections in the first
quarter of 2016 increased by 39% compared to the first quarter of
2015, while amortization increased by 66%. Due to our ongoing efforts
on operational excellence, operating expenses decreased compared to
the corresponding quarter in the prior year and were in line with
guidance, contributing to the improvement of 60% in cash EBITDA (net
collections less operating expenses) in the first quarter of 2016.

Gross ERC (Estimated Remaining Collections) increased by 11% at the
end of the first quarter of 2016 as compared to the same period in
2015, due to the recent acquisitions. Compared to the fourth quarter
of 2015 ERC has decreased by 2% due to collections and amortization
on the portfolios.

Cash flow from operating activities before working capital changes for
the first quarter of 2016 was EUR 4.4M, compared to EUR 2.3M for the
first quarter of 2015. Following the closing of the recent Hungarian
transaction at the end of April, we received the first cash flows
from collections in early May. This acquisition will contribute to
stronger operational cash flows during 2016.

Market outlook
The pipeline of portfolios for sale across our region continues to
increase significantly and outpace industry growth in Europe as a
whole. DDM is seeing a sharp increase in the number of invites to bid
for large portfolios and we are well placed to continue the rapid
expansion in our investment activities. We remain positive on the
outlook for DDM, as we are currently in advanced stages on several
significant transactions.

Given the large amount of investment opportunities, funding is a key
focus. We aim to raise additional funding, both equity and debt,
targeting a long-term and sustainable capital structure and costs.
With the improved financial position due to the recent acquisitions,
we feel confident that we will be able to continue to deliver
according to our strategy.

The information in this Interim Report requires DDM to publish the
information in accordance with the Securities Market Act and/or the
Act on Trading in Financial Instruments. The information was
submitted for publication 12 May 2016 at 8:00 a.m. CET.

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

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

DDM Holding AG (Nasdaq First North Stockholm: DDM) is a key acquirer
and manager of distressed assets. Since 2007, the DDM Group has built
a successful platform in Eastern Europe, currently managing 2.3
million receivables with a nominal value of over EUR 2 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.

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http://news.cision.com/ddm-holding-ag/r/strong-net-collections-from-rece...
http://mb.cision.com/Main/10229/2007482/514632.pdf

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