Home Credit a.s. Condensed Interim Financial Statements for the nine month period ended 30 September (unaudited)

Transcription

1 Condensed Interim Financial Statements for the nine month period 30 September 2016 (unaudited)

2 Condensed Interim Financial Statements for the nine month period 30 September 2016 Contents Condensed Interim Statement of Financial Position 3 Condensed Interim Statement of Comprehensive Income 4 Condensed Interim Statement of Changes in Equity 5 Condensed Interim Statement of Cash Flows

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4 Condensed Interim Statement of Comprehensive Income for the nine month period 30 September 2016 Note Interest income , ,576 Interest expense 12 (10,983) (12,079) Net interest income 232, ,497 Fee and commission income , ,704 Fee and commission expense 14 (271,468) (251,138) Net fee and commission expense (93,645) (62,434) Gains on disposal of loans receivables ,527 1,066,464 Other operating income , ,128 Operating income 1,032,844 1,368,655 Impairment losses 16 (64,638) (66,102) General administrative expenses 17 (777,819) (744,043) Operating expenses (842,457) (810,145) Profit before tax 190, ,510 Income tax expense 18 (51,159) (121,986) Net profit for the period 139, ,524 Total comprehensive income for the period 139, ,

5 Condensed Interim Statement of Changes in Equity for the nine month period 30 September 2016 Other Retained Share capital capital earnings Total Balance as at 1 January , , ,954 1,501,022 Dividends to shareholders - - (500,000) (500,000) Net profit for the period , ,228 Balance as at 30 September , , ,182 1,140,250 Other Retained Share capital capital earnings Total Balance as at 1 January , , ,188 1,380,256 Dividends to shareholders - - (400,000) (400,000) Effect of merger (refer to Note 3) ,503 13,503 Net profit for the period , ,524 Balance as at 30 September , , ,215 1,430,

6 Condensed Interim Statement of Cash Flows for the nine month period 30 September 2016 Note Operating activities Profit before tax 190, ,510 Adjustments for: Impairment losses 16 64,638 66,102 Interest expense 12 10,983 12,079 Depreciation and amortization 17 28,260 27,444 Net gain on disposal of property, equipment and intangible assets (1,319) (2,386) Net operating cash flow before changes in working capital 292, ,749 Change in loans to customers 337, ,538 Change in other assets 199,530 (151,747) Change in other liabilities 72,687 44,797 Cash flows from the operations 902, ,337 Interest paid (10,870) (12,323) Income tax paid (96,751) (29,710) Cash flows from operating activities 794, ,304 Investing activities Proceeds from sale of property, equipment and intangible assets 1,684 2,935 Acquisition of property, equipment and intangible assets (18,018) (19,218) Effect of merger (refer to Note 3) - 13,503 Cash flows used in investing activities (16,334) (2,780) Financing activities Dividends paid to shareholders (500,000) (400,000) Proceeds from banks and other financial institutions 5,010,000 5,665,000 Repayment of amounts due to banks and other financial institutions (5,230,000) (5,880,000) Cash flows used in financing activities (720,000) (615,000) Net increase in cash and cash equivalents 58,231 58,524 Cash and cash equivalents at 1 January 296, ,895 Cash and cash equivalents at 30 September 4 354, ,

7 for the nine month period 30 September Description of the Company Home Credit a.s. (the Company ) was established through demerger of its legal predecessor, Home Credit Finance a.s. The demerger was recorded in the Commercial Register in October 2005 and for financial reporting purposes is effective from 3 January With the effective date as of 1 January 2015, the Company merged with Click Credit s.r.o. (dissolving company). The merger was recorded in the Commercial Register on 31 August 2015 (refer to Note 3). Registered office Home Credit a.s. Nové sady 996/ Brno Czech Republic Shareholders Country of incorporation Ownership interest (%) Home Credit B.V. Netherlands The ultimate controlling entity is PPF Group N.V. registered in the Netherlands. Board of Directors Supervisory Board David Bystrzycki Chairman Pavel Rozehnal Chairman (since 1 July) Luděk Jírů Member Miroslav Zborovský Member Zdeněk Šperka Member David Minol Member (since 1 July) Erich Čomor Chairman (until 30 June) Principal activities The principal activity of the Company is the provision of consumer financing to private individual customers in the Czech Republic. The onward sales of originated loan receivables represent the major source of revenues of the Company. 2. Basis of preparation (a) (b) Statement of compliance The interim financial statements follow, in the context of measurement, all requirements of International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS), promulgated by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB as adopted for use in the European Union. The disclosures in these interim financial statements have been presented in accordance with IAS 34 Interim Financial Reporting, and therefore should be interpreted in conjunction with the Company s financial statements for the year 31 December 2015, as these interim financial statements provide an update of previously reported financial information. Comparative figures The comparative figures have been regrouped or reclassified, where necessary, on a basis consistent with the current year

8 for the nine month period 30 September Significant accounting policies The significant accounting policies applied in the preparation of the interim financial statements are consistent with those used in the preparation of the Company s financial statements for the year 31 December The Company merged with Click Credit s.r.o. (dissolving company) as a business combination under the common control which is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Such acquisitions are excluded from the scope of IFRS 3. The effective date of the merger is 1 January 2015 and the merger was recorded in the Commercial Register on 31 August The registered capital, other capital funds as well as accumulated losses of the dissolving company have been transferred to retained earnings of the Company. 4. Cash and cash equivalents Cash in hand Current accounts 354, , Loans to customers 354, ,695 Gross amount Cash loan receivables 1,156,008 1,275,642 Revolving loan receivables 632, ,049 Car loan receivables 605, ,295 POS loan receivables 376, ,644 Loans to corporations 93,461 79,170 Leasing receivables 10,574 10,574 2,874,507 3,200,374 Collective allowances for impairment Cash loan receivables (710,375) (671,899) Revolving loan receivables (337,632) (322,449) Car loan receivables (294,726) (289,103) POS loan receivables (208,629) (192,468) Leasing receivables (10,574) (10,574) (1,561,936) (1,486,493) Specific allowances for impairment on loans to corporations (2,785) (2,437) 1,309,786 1,711,

9 for the nine month period 30 September Intangible assets Acquisition cost 141, ,736 Accumulated amortization (117,671) (102,431) 7. Property and equipment 24,146 26,305 Acquisition cost 101, ,756 Accumulated depreciation (70,203) (61,198) 8. Other assets 31,110 39,558 Prepaid expenses 555, ,645 Outstanding selling price for receivables 382, ,589 Accounts receivable 81, ,705 Other 1,216 1,216 1,020,625 1,220,155 Specific allowances for impairment on settlements with suppliers (144) (144) 9. Due to banks and other financial institutions 1,020,481 1,220,011 Unsecured bank loans Interest Final Amount outstanding rate maturity Term loan facility of 620,000 Term loan facility of 200,000 PRIBOR + margin October , ,435 PRIBOR + margin December ,156 70, , ,

10 for the nine month period 30 September Other liabilities Various liabilities due to customers 519, ,790 Accrued expenses 456, ,456 Accounts payable 132, ,900 Accrued employee compensation 66,489 69,015 Other taxes payable 2,222 4,866 Deferred income 3,185 4,847 1,179,561 1,106,874 Out of accrued expenses stated above the amount of 384,119 (31 December 2015: 324,308) represents accrued client s bonuses dependent on timely repayment of respective POS and cash loans. 11. Equity At 30 September 2016 the authorized share capital comprised 300 ordinary shares (31 December 2015: 300) with a nominal value of CZK 1,000,000 each. All issued shares have been fully paid and bear equal voting rights. The holders of shares are entitled to receive dividends when declared. In March 2016 the sole shareholder approved the distribution of retained earnings in the form of a dividend in the amount of CZK 1,666,666 per each share, totaling to 500, Interest income and interest expense Interest income Cash loan receivables 96,748 94,807 Revolving loan receivables 63,255 31,663 Car loan receivables 41,464 46,031 POS loan receivables 40,814 44,489 Loans to corporations 1,167 1,577 Due from banks and other financial institutions , ,576 Interest expense Balances from banks and other financial institutions 10,983 12,079 10,983 12,

11 for the nine month period 30 September Fee and commission income Customer payment processing and account maintenance 75,561 89,329 Penalty fees 41,792 36,660 Cash transactions 30,351 38,808 Insurance commissions 30,119 23, Fee and commission expense 177, ,704 Commissions to retailers 235, ,468 Cash transactions 24,703 24,745 Payment processing and account maintenance 11,490 9, Operating income 271, ,138 Gains on disposal of loan receivables Revolving loan receivables 429, ,840 POS loan, cash loan and car loan receivables 328, , ,527 1,066,464 Other operating income Fees for servicing receivables sold 88,021 90,760 Net foreign exchange income 2,110 1,301 Other 45,349 66, , ,

12 for the nine month period 30 September Impairment losses Cash loan receivables 36,055 29,498 POS loan receivables 14,889 23,313 Revolving loan receivables 13,870 15,371 Car loan receivables (525) (2,805) Other receivables General administrative expenses 64,638 66,102 Employee compensation 230, ,591 Payroll related taxes (including pension contributions) 71,069 65,842 Information technologies 131, ,908 Advertising and marketing 95, ,278 Professional services 81,935 73,673 Telecommunication and postage 78,172 87,704 Depreciation and amortization 28,260 27,444 Occupancy 21,123 18,793 Travel expenses 12,208 12,047 Other 27,313 25, Income tax expense 777, ,043 Income tax for current year 46, ,753 Correction related to prior periods 2,830 2,865 Current tax expense 49, ,618 Deferred tax expense 1,506 3,368 Total income tax expense in the statement of comprehensive income 51, ,

13 for the nine month period 30 September Commitments The Company has outstanding commitments to extend credit. These commitments take the form of approved credit limits related to customer s revolving loan accounts, cash loan facilities, POS loan facilities and car loan facilities. Revolving loan commitments 3,113,120 3,200,558 Cash loan commitments 49,282 38,789 POS loan commitments 25,315 40,755 Car loan commitments 5,132 2,303 3,192,849 3,282,405 The total outstanding contractual commitments to extend credit indicated above do not necessarily represent future cash requirements, as many of these commitments will expire or terminate without being funded. 20. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: Less than one year 19,594 20,129 Between one and five years 25,020 39,342 44,614 59,471 The Company leases a number of premises and equipment under operating leases. Lease payments are usually increased annually to reflect market rentals. None of the leases includes contingent rentals. During the nine month period 30 September ,882 (the nine month period 30 September 2015: 21,442) was recognized as an expense in the statement of comprehensive income in respect of operating leases