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 2009 (unaudited)

2 Condensed Interim Financial Statements for the nine month period 30 September 2009 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

3 Condensed Interim Statement of Financial Position as at 30 September 2009 ASSETS Note Cash and cash equivalents 4 32, ,585 Due from banks and other financial institutions 5 943, ,352 Loans to customers 6 1,426,768 11,605,368 Positive fair value of derivative instruments 49,929 - Financial assets available-for-sale 7 588,030 - Intangible assets 8 5,066 9,620 Property and equipment 9 18,629 27,642 Current income tax receivables 87,433 - Deferred tax asset - 53,811 Other assets , ,609 Total assets 3,703,033 13,079,987 LIABILITIES AND EQUITY Due to banks and other financial institutions ,327 2,963,072 Debt securities issued 12-7,179,817 Current income tax liability - 59,993 Deferred tax liability 33,263 - Other liabilities 13 1,034, ,078 Total liabilities 1,281,053 11,093,960 Equity Share capital , ,000 Other capital 344, ,068 Statutory reserve fund 77,000 77,000 Retained earnings 1,700,912 1,264,959 Total equity 2,421,980 1,986,027 Total liabilities and equity 3,703,033 13,079,987 The financial statements as set out on pages 3 to 15 were approved by the Board of Directors of the Company on 26 November Erich Čomor Chairman of the Board of Directors - 3 -

4 Condensed Interim Statement of Comprehensive Income for the nine month period 30 September 2009 Note Interest income 15 1,502,816 2,098,193 Interest expense 15 (239,507) (403,257) Net interest income 1,263,309 1,694,936 Fee and commission income , ,315 Fee and commission expense 17 (154,779) (209,650) Net fee and commission income 320, ,665 Other operating income ,777 24,340 Operating income 2,220,776 1,825,941 Impairment losses 19 (655,869) (149,193) Net expense related to credit risk insurance 20 (481,092) (277,696) General administrative expenses 21 (484,285) (580,556) Operating expenses (1,621,246) (1,007,445) Profit before tax 599, ,496 Income tax expense 22 (163,577) (177,960) Net profit for the period 435, ,536 Total comprehensive income for the period 435, ,

5 Condensed Interim Statement of Changes in Equity for the nine month period 30 September 2009 Share capital Other capital Statutory reserve fund Retained earnings Total Balance as at 1 January , ,068 77,000 1,026,724 1,747,792 Dividends to shareholders (500,000) (500,000) Net profit for the period , ,536 Total comprehensive income for the period , ,536 Balance as at 30 September , ,068 77,000 1,167,260 1,888,328 Share capital Other capital Statutory reserve fund Retained earnings Total Balance as at 1 January , ,068 77,000 1,264,959 1,986,027 Net profit for the period , ,953 Total comprehensive income for the period , ,953 Balance as at 30 September , ,068 77,000 1,700,912 2,421,

6 Condensed Interim Statement of Cash Flows for the nine month period 30 September 2009 Note Operating activities Profit before tax 599, ,496 Adjustments for: Depreciation and amortization 21 17,941 21,604 Gain on disposal of loan receivables (588,030) - Gain on disposal of property, equipment and intangible assets (472) (1,886) Impairment losses , ,193 Interest expense , ,257 Net operating cash flow before changes in working capital 924,345 1,390,664 Change in due from banks and other financial institutions (72,168) 7,258 Change in loans to customers 9,512,836 (1,602,456) Change in financial assets at fair value (49,929) - Change in other assets (436,813) 104,277 Change in other liabilities 143,386 (11,852) Cash flows from/(used in) operations 10,021,657 (112,109) Income tax paid (223,930) (231,310) Interest paid (382,348) (422,057) Cash flows from/(used in) operating activities 9,415,379 (765,476) Investing activities Proceeds from sale of property, equipment and intangible assets 1,064 2,446 Acquisition of property, equipment and intangible assets (4,966) (21,706) Cash flows used in investing activities (3,902) (19,260) Financing activities Dividends paid to shareholders - (500,000) Proceeds from due to banks and other financial institutions 1,284,900 1,700,000 Repayment of due to banks and other financial institutions (4,000,000) (350,000) Repayment of debt securities (7,071,621) - Cash flows (used in)/from financing activities (9,786,721) 850,000 Net (decrease)/increase in cash and cash equivalents (375,244) 65,264 Cash and cash equivalents at 1 January 4 407, ,875 Cash and cash equivalents at 30 September 4 32, ,

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 Registered office Home Credit a.s. Moravské náměstí 249/ 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 Erich Čomor Chairman Pavel Pfauser Chairman Ladislav Chvátal Deputy Chairman Karla Henčlová Member Luboš Berkovec Member Pavel Vyhnálek Member Andrea Zatloukalová Member Principal activities The principal activity of the Company is the provision of consumer financing to private individual customers in the Czech Republic. 2. Basis of preparation 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 2008, as these interim financial statements provide an update of previously reported financial information. 3. 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 comparative figures have been regrouped or reclassified, where necessary, on a basis consistent with the current period

8 for the nine month period 30 September Cash and cash equivalents Cash 3,178 2,326 Current accounts 29, ,559 Placements with financial institutions due within one month - 38,700 32, , Due from banks and other financial institutions Loans and term deposits 943, , , ,352 At 31 December 2008 term deposits of 871,352 were pledged as security for a bank loan facility drawn by a related party. At 30 September 2009, the balance presented above represents an inter-company loan provided to a related party. 6. Loans to customers Gross amount Cash loan receivables 925,925 4,295,431 Revolving loan receivables 527,813 7,788,942 Consumer loan receivables 527,001 1,814,797 Car loan receivables 149,650 9,402 Loans to corporations 35,306 31,449 Leasing receivables 10,696 10,814 2,176,391 13,950,835 Collective allowances for impairment Cash loan receivables (409,776) (32,802) Revolving loan receivables (210,830) (2,242,142) Consumer loan receivables (108,820) (59,084) Leasing receivables (10,696) (10,696) Car loan receivables (9,129) (470) (749,251) (2,345,194) Specific allowances for impairment on loans to corporations (372) (273) (749,623) (2,345,467) 1,426,768 11,605,

9 for the nine month period 30 September Loans to customers (continued) In April 2009, the Company sold a pool of revolving loan receivables in gross amount of 5,769,161 to a related party. The proceeds from the sale were used to repay the Company s securitisation funding (refer to Note 12). The receivables sale agreement provides for the sale of both present receivables and future receivables arising on certain nominated revolving loan accounts. The price for the receivables consist of two components, a fixed component equal to face value of sold receivables and a future component contingent on the receivables pool performance. The pool of receivables sold was derecognized by the Company and the right to receive the contingent part of the sales price was recognized as an available-for-sale asset and is measured at fair value (refer to Note 7). In August 2009, the Company sold a pool of consumer loan and cash loan receivables in gross amount of 4,389,084 to a related party. The proceeds from the sale were used to repay the Company s bank financing (refer to Note 11). The receivables sale agreement provides for the sale of both present receivables and future receivables generated by the Company. The price for the receivables consist of two components, a fixed component equal to face value of sold receivables and a future component contingent on the receivables pool performance. The pool of receivables sold was derecognized by the Company and the right to receive the contingent part of the sales price was recognized as an available-for-sale asset and is measured at fair value (refer to Note 7). As of 31 December 2008, consumer loan receivables and cash loan receivables in gross amount of 3,902,139 were pledged as security for a bank loan facility (refer to Note 11). At 31 December 2008 revolving loan receivables of 4,588,378 represent the securitized receivables pool (refer to Note 12). 7. Financial assets available-for-sale Contingent part of sales price for loan receivables sold 588, , Intangible assets Acquisition cost 66,442 65,614 Accumulated amortisation (61,376) (55,994) Carrying amount 5,066 9, Property and equipment Acquisition cost 102, ,999 Accumulated depreciation (83,546) (93,357) Carrying amount 18,629 27,

10 for the nine month period 30 September Other assets Outstanding selling price for receivables 424,820 - Prepaid expenses (other than insurance) 99,758 70,606 Settlements with suppliers 30,297 49,637 Goods held for resale, supplies and other inventories Other 3,055 1, , ,303 Specific allowances for impairment on settlement with suppliers (6,838) (16,933) Specific allowances for impairment on goods held for resale (339) (761) (7,177) (17,694) 551, , Due to banks and other financial institutions Secured bank loans - 2,851,585 Other balances 213, , ,327 2,963,072 Secured bank loans Interest Final Amount outstanding rate maturity Security Syndicated loan facility of MCZK 3,000 Variable at PRIBOR + margin August 2009 Pledge of consumer loan and cash loan receivables - 2,851,585-2,851, Debt securities issued Unsecured bond issues - 3,098,632 Securitization debt - 4,081,185-7,179,

11 for the nine month period 30 September Debt securities issued (continued) Unsecured bond issues Bond issue of MCZK 3,000 Amount outstanding Interest rate Final maturity Variable at PRIBOR + margin July ,098,632-3,098,632 Securitization debt Interest Final Amount outstanding rate maturity Security Securitized pool Senior variable loan note of MCZK 5,000 Variable April 2009 of revolving loan receivables - 3,530,689 Junior variable loan note of 779,221 Variable April 2009 Securitized pool of revolving loan receivables - 550,496-4,081,185 In September 2003, the Company raised funds by securitizing a pool of revolving loan receivables originated by the Company. Pursuant to a receivables sale agreement the Company sold revolving loan receivables into a securitization structure which involves several special purpose entities incorporated in the Netherlands. The Company did not participate in the capital or voting powers of these entities. The receivables sale agreement provided for the sale of both present receivables and future receivables arising on certain nominated revolving loan accounts. The purchase of the receivables pool by the securitization structure was funded by issuance of a senior and a subordinated variable loan note. The subordinate note was subscribed by the Company in 2003 and repaid in June In May 2006, the final maturity of the senior variable loan note was ext until April 2009 and the funding limit was increased to 5,000,000. In addition, a junior variable loan note with the funding limit of 779,221 was issued in June In June 2006, the final maturity of both loan notes was ext until April In April 2009 the loan notes were redeemed. 13. Other liabilities Insurance liability, net 516, ,277 Settlement with suppliers 396, ,533 Estimated payables 71,663 51,126 Accrued employee compensation 33,733 42,495 Accrued expenses 8,566 9,053 Other taxes payable 7,069 10,594 1,034, ,

12 for the nine month period 30 September Share capital At 30 September 2009 the authorized share capital comprised 300 ordinary shares (31 December 2008: 300) with a nominal value of CZK 1,000,000. All issued shares have been fully paid and bear equal voting rights. The holders of shares are entitled to receive dividends when declared. 15. Interest income and interest expense Interest income Revolving loan receivables 627,588 1,196,488 Cash loan receivables 587, ,435 Consumer loan receivables 233, ,294 Due from banks and other financial institutions 40,122 41,478 Car loans receivables 12,963 - Loans to corporations 1, ,502,816 2,098,193 Interest expense Debt securities issued 157, ,644 Due to banks and other financial institutions 82,357 83,584 Finance leases , , Fee and commission income Penalty fees 293, ,276 Cash transactions 85,680 90,946 Customer payment processing and account maintenance 69,656 67,241 Insurance commissions 26,625 24,538 Other , , Fee and commission expense Retailers commissions 84, ,327 Cash transactions 45,952 48,200 Payment processing and account maintenance 23,808 29,037 Other , ,

13 for the nine month period 30 September Other operating income Gains on disposal of loan receivables 594,139 - Net gains on derivatives 49,929 - Sale of goods 17, ,371 Cost of goods sold (16,865) (127,904) Storage of goods and distribution expenses (767) (2,089) Net foreign exchange (expense)/income (51,621) 878 Other 44,290 20, ,777 24, Impairment losses Cash loan receivables 369,758 8,549 Revolving loan receivables 237, ,696 Consumer loan receivables 49,834 (397) Car loans receivables 8,659 - Loans to corporations Finance leases - (1,322) Loans to customers 665, ,626 Other assets (9,895) (19,433) 655, , Net expense related to credit risk insurance Cash loan receivables 871, ,058 Consumer loan receivables 425, ,526 Commission income for collecting defaulted receivables (815,922) (410,888) 481, ,

14 for the nine month period 30 September General administrative expenses Employee compensation 143, ,280 Payroll related taxes (including pension contribution) 42,622 44,368 Telecommunication and postage 82, ,399 Information technologies 59,202 54,396 Professional services 55,524 61,032 Avertising and marketing 36,945 90,708 Occupancy 24,350 25,981 Depreciation and amortization 17,941 21,604 Travel expenses 8,591 10,559 Taxes other than income tax 1,800 - Other 11,606 17, , , Income tax expense Current tax expense 76, ,658 Deferred tax expense/(benefit) 87,073 (35,698) Total income tax expense in the income statement 163, , Commitments The Company has outstanding commitments to extend credit. These commitments take the form of approved credit limits related to customers revolving loan accounts, consumer loan facilities and cash loan facilities. Revolving loan commitments 3,042,360 9,869,840 Consumer loan commitments 68,448 52,978 Cash loan commitments 55,463 70,863 Car loan commitments 4,266-3,170,537 9,993,681 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

15 for the nine month period 30 September Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: Less than one year 32,916 22,672 Between one and five years 82,586 41, ,502 64,139 The Company leases premises 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 ,016 (the nine month period 30 September 2008: 27,430) was recognized as an expense in the income statement in respect of operating leases