DDM Holding AG: Interim report January–June 2015

Highlights second quarter 2015

  · Pipeline remains strong with significant transactions expected to close
before year-end, along with additional funding.
  · Senior secured notes were successfully refinanced during the second quarter
  · Net collections during the second quarter increased by 20% to EUR 3.5M (Q2
2014: EUR 2.9M)
  · Cash EBITDA amounted to EUR 2.3M during the second quarter 2015 (Q2 2014:
EUR 1.8M)
  · Gross ERC was EUR 59.7M at the end of June 2015, an increase of 55% (Q2
2014: EUR 38.5M)
  · Operating expenses trended down during the quarter

Highlights first six months 2015

  · Net collections during the first six months 2015 increased by 61% to EUR
9.2M (H1 2014: EUR 5.7M)
  · Cash EBITDA amounted to EUR 6.4M during the first six months 2015 (H1 2014:
EUR 3.5M)
Comment by the CEO
As part of DDM’s strategy to balance our geographic presence, we entered Hungary
in the beginning of 2015 by investing in a portfolio and acquiring the Hungarian
company Summit Pénzügyi. This was also a significant event as the investment was
made in partnership with one of the world’s largest financial institutions. We
benefitted from a one-off gain at the time of the acquisition, in Q1 2015, and
we were able to recognize net collections of about EUR 1.7M. The Hungarian
investment is performing above our expectations. This is an important
transaction for DDM as it has led to a number of significant new opportunities
across the region.

We successfully refinanced our SEK 300M senior secured notes, with amended terms
and conditions to facilitate raising of additional funding for increased
investments in the second half of the year. The new structure and terms and
conditions is also a step to reduce our cost of funding. The refinancing was
successfully completed on 23 June 2015 with resounding support by the
bondholders. The amended Terms and Conditions in their entirety are available on
our website along with a summary of the amendments.

Net collections in the second quarter of 2015 amounted to EUR 3.5M, an increase
of 20% compared to second quarter 2014. For the first six months of 2015, net
collections increased by 61% compared to the same period last year.

Gross ERC (Estimated Remaining Collections) increased 55% to EUR 59.7M at the
end of the second quarter 2015 compared to Q2 2014.

The Russian investments perform in line with our forecasts, revised at the end
of 2014, despite macro-economic challenges. Our performance in several other
markets continues to be supportive and the legal collection processes for
several investments are expected to become an increasing part of collections
during the second half of the year

Cash EBITDA (net collections less operating expenses) increased by EUR 0.5M, to
EUR 2.3M, in comparison to the second quarter 2014. Cash EBITDA during the first
six months of 2015 amounted to EUR 6.4M, an increase by 82% compared to the same
period in 2014. We were negatively impacted by foreign exchange, the absolute
majority unrealized, as the RUB weakened during the quarter.

Cash flow from operating activities before working capital changes was EUR 3.9M
in the first six months 2015, an increase of 30% compared to the same period in
2014. Investments in distressed asset portfolios amounted to EUR 0.4M, during
the second quarter 2015 and EUR 4.6M in the first six month 2015.

As previously communicated, efforts to reduce operational expenses were
initiated during the first quarter 2015 and are expected to continue in the
coming months.

Market outlook
With strong growth in our pipeline of investment opportunities, we remain
optimistic on the outlook of DDM, as we are currently in advanced stages on
several significant transactions. These are expected to close before year-end
and contribute to a positive financial result for the full year 2015.

Presentation of the interim report
CEO Gustav Hultgren and CFO Fredrik Olsson will comment on the report at a
conference call on 20 August 2015, starting at 10:00 a.m. CET. The presentation
can be followed live on www.ddm-group.ch and/or by telephone with dial-in
numbers: SE: +46 8 566 427 00, CH: toll free 0800 005 203 or UK: +44 203 428 14
08.

Please find attached the full report.
For more information, please visit DDM’s website at www.ddm-group.ch or contact:

Anders Antonsson, Investor Relations
Mail: a.antonsson@ddm-group.ch | Tel: 46 8 4080 9030
DDM Holding AG (Nasdaq First North Stockholm: DDM) is a multinational investor
and manager of distressed assets. Since 2007, the DDM Group has built a
successful platform in Eastern Europe, with 2.2 million receivables in nominal
value over EUR 1.7 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.