28 Feb 2025

Q4 and full year report January - December 2024

Super senior issuance and tender offer

Highlights fourth quarter 2024

• DDM Debt AB successfully issued super senior secured bonds of EUR 25m
• DDM Debt AB executed a tender offer for EUR 25m of its senior secured bonds at 62.90% and repaid its EUR 4.5m RCF
• Gross ERC at the end of December 2024 was EUR 311m (280 at December 2023)
• Adjusted gross collections amounted to EUR 16.7m (16.4)*
• Adjusted net collections amounted to EUR 12.1m (14.3)*
• Adjusted cash EBITDA amounted to EUR 7.4m (9.5)*
• Adjusted profit for the period of EUR 15.2m (loss of EUR 2.0m)*

Highlights full year 2024

• Adjusted gross collections amounted to EUR 56.1m (55.9)*
• Adjusted net collections amounted to EUR 44.6m (48.7)*
• Adjusted cash EBITDA amounted to EUR 27.4m (31.5)*
• Adjusted profit for the year of EUR 10.2m (loss of EUR 7.6m)*
• Erik Fällström appointed as CEO, replacing Razvan Munteanu

Significant events after the end of the year

• Jesper Bernström appointed CFO of DDM

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

Comment by the CEO

During the fourth quarter of 2024 we successfully adjusted our financing structure, with DDM Debt AB issuing EUR 25m of super senior secured fixed rate bonds (the “super senior bonds”) at 9.50% on 4 December 2024. The super senior bonds have a final maturity date of 30 March 2027. The proceeds from the super senior bonds were mainly employed towards acquiring EUR 25m in nominal value of the existing EUR 200m bonds issued by DDM Debt AB with ISIN number SE0015797683 at a purchase price of 62.90%, and to repay the EUR 4.5m RCF with a Swedish bank. The remaining proceeds were for transaction costs and general corporate purposes.

During the quarter we also continued to work hard on managing our asset portfolio as well as acquiring a small NPL portfolio in Croatia. While our primary focus remains on investing in and managing non-performing loan portfolios, we also actively pursue related and complementary investments.

Outlook

Despite ongoing geopolitical challenges, supply chain disruption and shrinking disposable incomes, NPL trends in central, eastern and south-eastern Europe continue to show resilience. However, despite the low overall NPL ratio in the region, there are early signs of increasing credit risks. Vulnerabilities in sectors such as real estate and small and medium-sized enterprises continue to be identified. Higher borrowing costs for households and non-financial corporations could exacerbate challenges for already strained sectors and further contribute to rising corporate default rates. Market dynamics continue to be driven by routine tactical primary sales, as well as secondary sales on the back of deleveraging exercises by some of the key market players.  We will continue to be disciplined in the sourcing of new business and monitor investment cases on both a strategic and opportunistic basis, as well as continuing to actively manage our portfolio.

Financial calendar

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

Annual report 2024:                                        30 April 2025

Q1 report for January – March 2025:              30 May 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 28 February 2025, at 17:45 CET.

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 28 February 2025 at 17:45 CET.

For more information, please contact:

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.