PPF Group N.V. (‘Group’ or ‘PPF Group’) announces its IFRS audited consolidated financial results for the year ended 31 December 2009
- PPF Group has achieved a record net profit of EUR 271 million from continuing operations in 2009; responding successfully to the challenges brought about by the economic crisis.
- PPF Group has confirmed its position as one of the largest investment groups based in CEE and is better diversified and stronger than ever before with operations now in precious metals mining, retailing, energy, health and media.
- PPF Group completed new deals with Generali, J&T Group, Mr. Daniel Kretinsky (EP Holding) and Mr. Igor Yakovlev (Eldorado).
- Debt buy-back programme initiated, leading to the overall deleveraging of PPF Group.
„During 2009, we strengthened our position in our main markets of the Czech Republic and Russia and are expanding in Asia. We also reinforced our experienced international team both at PPF Headquarters and in our individual markets in order to manage our assets in the most effective way. Looking forward, our investments into distressed assets, announced at the beginning of 2009, remain promising as they provide strong opportunities for turn-around and business development, a key area in which we are historically strong. I am sure that these investments will bring increased value for shareholders in the future.“
Jiří Šmejc, PPF Group Shareholder
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PPF Group posted net profit at EUR 271 million for the year ended 31 December 2009, which represents the highest net profit from continuing operations in the recent three years. The increase of EUR 476 million in net profit from continuing operations was driven by the radical business optimization and cost-cutting program which was initiated in the autumn of 2008 in response to the harsh economic environment.
PPF Group’s assets reached EUR 10,802 million for YE 2009 compared to EUR 10,730 million for YE 2008.
PPF Group strengthened its total equity up to EUR 3,955 million, twice that of two years ago (EUR 1,432 million for YE 2007).
At PPF Group, our aim is to generate returns on our investments in the most efficient manner possible. The business optimization plan had many operational successes over the year, which in turn improved PPF Group’s overall financial performance. The most notable in the investment portfolio being:
- Home Credit: registered very solid results mainly due to a Group-wide crisis response programme and to HC Russia which achieved record net profit of EUR 117 million
- Asia operations: PPF received approval to establish the first Consumer Finance Company (in Tianjin), the first fully-owned by a foreign investor
- PPF banka: posted record net profit of EUR 31 million, 49% y-o-y increase despite the global economic crisis
- Nomos-Bank: expanded from being a Moscow-based bank to gaining a widened presence across the Russian Federation
- Polymetal: recorded EUR 69 million in net profit compared to previous two years of losses; four acquisitions of mines completed
- Eldorado: turnaround process completed, liquidity and profitability stabilised; the company reconfirmed its market leadership by gaining 23% share in Russia
As mentioned above, during the reporting period, PPF Group carried out several significant transactions that extended the Group’s investment focus into new areas of growth and new geographic regions. PPF Group focuses on opportunities that have significant value creation potential over a reasonable period of time.
- PPF Partners, a private equity firm specialising in investing in the emerging markets of Central and Eastern Europe, was established with partnership of Generali in late 2008. PPF Partners already operates with the first fund, PPF Partners 1 LP, funded with total commitments amounting to EUR 615 million. In 2009 PPF Partners made strategic investments in the waste management industry, leisure and media industries and non-performing loans collection business in Czech Republic, Romania and Ukraine.
- In October 2009, PPF Group, Mr. Daniel Kretinsky and J&T Group established a joint venture, Energeticky a prumyslovy holding, to operate in the energy and industrial sectors. PPF Group and PPF Partners hold a 40% share combined in the venture, which encompasses over 20 companies and is being built as vertically integrated energy utility.
- In October 2009 as part of its strategy to acquire distressed assets opportunistically, PPF Group, together with Generali as a minority partner, acquired through a debt for equity swap a controlling stake (50% plus one share) in Eldorado, which is the Russia’s largest consumer electronics retailer of household appliances.
- During the year, PPF Group executed entry into a new key sector through PPF Healthcare that acquired Euroclinicum, which owns two hospitals and five polyclinics in the Czech Republic. The transaction was closed in January 2010, thus its full impact will be presented within financial results as of YE2010.
PPF Group consolidated financial statements for the year ended 31 December 2009 is available on www.ppfgroup.nl.