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2016-05-12

DDM Treasury Sweden AB: Strong net collections from recent acquisitions

Highlights first quarter 2016
- Net collections increased by 134% to SEK 68.6M (Q1 2015: SEK 29.3M)
- Cash EBITDA increased by 105% and amounted to SEK 58.1M (Q1 2015:
SEK 28.3M)

- Profit for the period of SEK 0.0M (Q1 2015: profit of SEK 4.9M)
- New portfolio acquired in the Czech Republic
- 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.

As a result of the recent acquisitions, net collections in the first
quarter of 2016 increased by 134% compared to the first quarter of
2015, while amortization increased by 143%. Cash EBITDA (net
collections less operating expenses) increased by 105% year-on-year.

Cash flow from operating activities before working capital changes for
the first quarter of 2016 was positive SEK 35.4M, compared to
positive SEK 9.8M 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, 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 contact:

Anders Antonsson, Investor Relations
Mail: investor@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 (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.

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http://news.cision.com/ddm-treasury-sweden-ab/r/strong-net-collections-f...
http://mb.cision.com/Main/8733/2007476/514634.pdf

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