Welcome to DDM Holding Q2 presentation for 2023. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to the CEO, Razvan Munteanu, and CFO, Fredrik Olsson. Please go ahead. Good morning. I am Razvan Munteanu, and it is a pleasure and a privilege to welcome you at the DDM call on the half-year results. We will take the audience today through a brief overview of the business and through the financials for the first six months, ending June 30, before taking questions from the participants. As this is the first call since my appointment on August 1, please allow me to introduce myself. I have been in the financial services for over 30 years. My most relevant professional experience coming from Mastercard, where I spent the first part of the, of my career. I moved then to Citibank, most notably leading their Hungarian credit card business before joining the board of Raiffeisen Bank, Romania, as a retail and SME head in 2005. This was the third-largest local bank owned by the Austrian Regional Banking Group. I, I led then the groups, Raiffeisen Bank International Group's consumer, banking business from its Vienna head office before joining the Advent-owned Addiko Bank in 2016. Initially, I joined as a retail head and then as a group CEO, in which capacity I led the group transformation and listing on the Vienna Stock Exchange. I ended my assignment in July 2020, and joined a different project in the management board of PrivatBank, the largest bank in Ukraine. I'm extremely excited and motivated to be part of DDM's team, and I'm looking forward to contribute to the strengthening of the group's operational capabilities and strategic discipline. Before we get into the key events of the quarter and first six months, let me say a few words on the general business environment. As you know, we are operating in a challenging context, driven by high interest rates, rising inflation, war in Ukraine, uncertainties regarding the supply chains. While the environment is difficult, it creates as well interesting opportunities for our core NPL business, stemming from competitors, investors, and banks. As we moved away from the Nordiska, Swiss Bankers transaction, we remain alert to opportunities, and I will mention a few activities that we are performing in this direction in the coming minutes. You have seen this page before. It is nevertheless relevant to bring it up again, both in the context of this being my first call, and also to reflect on our consistency and continuity from a strategic perspective. During the first part of 2023, and going forward, we'll continue to focus on 4 business pillars. First, consumer finance and embedded finance. I will use my background in consumer and digital banking, also in payment systems, to accelerate transformation and value creation in Omnio, one of the important investments of the group. The area of embedded finance and banking as a service is one of the most promising areas in financial services, where we need execution discipline to create sustainable value. 2, our core NPL business, where the current market conditions create opportunities for us to deploy capital at improved levels of IRR. We can take advantage of the different position of other investors and competitors in this core part of our business. 3, the servicing activity. It remains central to the group's strategy, with increased focus on consolidating the operational capabilities and digital collections. This will allow AxFina to increase the collection efficiency, diversify from servicing DDM portfolios, and increase the stake of third-party processing. Four, we remain a group focused on opportunistic investments in special situations. For the first half of 2023, we report the sale of our stake in Borgosesia investment, pending regulatory approval. Let me take note of the main aspects defining the second quarter of DDM. First, a strong cash position of over EUR 32 million gives us flexibility to use the opportunities in the market context I mentioned before. Second, we continue our active management of our assets. Most notably, I mentioned already, most notably the exit from Borgosesia investment, and also the acquisition of an NPL portfolio in Romania, which I'll cover in a second. Three, of notice, we are delisting DDM Holding AG, reducing the complexity of the group structure and the costs of operations. Let me take a few seconds to cover the acquisition in Romania. An example of the turbulences in the market creating opportunities for us is this particular acquisition of the NPL portfolio in Romania, which was signed, it was signed after the end of quarter two. Still, we report it to you, now is, we're done with it, and we're expecting regulatory approval by the end of quarter three. With over EUR 1 billion in gross collection value and expected to close in September, this transaction will contribute significantly to our core NPL business. Thanks to our strategic focus on building servicing capabilities, we are in a very good position to execute this transaction with the support of AxFina. Before handing over to Fredrik, in order to take you through the financials of the first six months, let me say a few words on the delisting of DDM Holding AG. The delisting is motivating by reducing the operational complexity of the group. The free float of less than 10% was no longer met, and the liquidity of the stock was very low, in spite of DDM engaging a liquidity provider since 2019. In this context, the delisting came as a natural conclusion, and it will not impact in any manner, the financial disclosures and other requirements of the bondholders of DDM Debt AB. With this, I hand over to Fredrik to take us through the numbers. Thank you, Razvan. Please turn to slide 9. This shows the DDM Debt Group income statement for Q2 and H1 2023, compared to last year. There are a few things to highlight. Interest income on invested assets for the second quarter was EUR 2.9 million higher than the second quarter of 2022, mainly due to EUR 2.2 million of dividend income from Addiko Bank in the quarter. Revaluation of invested assets was EUR 0.8 million higher than Q2 last year, mainly due to positive revaluation in Slovenia and Romania, resulting in revenue on invested assets in Q2 2023 being EUR 3.7 million higher than the prior year. The share of net profits of associates and joint venture in Q2 2023 was in line with the prior year. However, H1 2022 benefited from the strong performance of the Luce OR Albulus joint venture. Operating expenses increased by EUR 2.1 million in Q2 compared to last year, following the acquisition of 50% of AxFina at the beginning of Q3 2022, and a further 25% at the beginning of Q2 2023. Financial expenses were impacted by EUR 4.1 million fair value loss relating to the investment in Addiko Bank, due to the decrease in the share price during the second quarter of 2023. This offsets a EUR 3.6 million fair value gain, recognizing financial income in the first quarter of 2023, due to an increase in the Addiko Bank share price during the first quarter, resulting in a net EUR 0.5 million fair value loss in H1 2023. The second quarter of 2023 benefited from a EUR 5.4 million gain within financial income, due to the repurchase of about EUR 16 million of the outstanding bond at a discount. The net result for the second quarter was therefore a profit of EUR 1 million, compared to a loss of EUR 3.6 million in Q2 2022. Please turn to the next slide. This slide shows the DDM Debt Group balance sheet structure at the 30th of June 2023, with total assets of EUR 236 million. We have a strong liquidity position, as Razvan mentioned, with EUR 32 million of cash available to fund investments and acquisitions and capitalize on market opportunities. We also have EUR 163 million of invested assets across portfolios, joint ventures, associates, and financial assets at fair value. Our liabilities are mainly long-term bonds, which mature in April 2026. We also have a small RCF of EUR 4.5 million, which was entered into in the first quarter of 2023. Please move to the next slide, which shows our ERCs. The ERC amounted to EUR 256 million at the end of Q2, a EUR 28 million decrease from December 31, 2022, mainly due to collections that have been received during the first half of 2023, partially offset by acquisitions and revaluation. At the end of June, 71% of the gross collections are expected to be received in the next three years. Looking at the upper right-hand corner of the slide, approximately 55% of the ERC for the next three years is secured. This includes our share of security in the ERC and the underlying assets invested. And with that, I would like to hand back to Razvan to finish the presentation. Yeah. Thank you very much, Fredrik. To conclude, our performance on core collection activities remains strong, and we stay slightly ahead of our expectation for the six months ending on June 30. We will focus on maintaining this for the rest of the year, and also on creating relevant value out of the opportunistic investments of the group. There's three things I would like you to take back from this call: First, our strong cash position gives us optionality in a context where opportunities will emerge. Second, we took a first such step in Romania, where we expect closing in quarter three. And third, we focus on strengthening our operational and digital capabilities, increasing the efficiency in AxFina's net collections. I thank you for your attention, and we're happy to answer questions from the participants. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Patrik Brattelius from ABG. Please go ahead. Thank you. Yes, a few questions from my side. My first question was in regard to this transaction you announced here in July in Romania. Could you please share with us the expected effect on the ERC? Hi, Patrik, this is Fredrik speaking. Hi. We have actually not yet communicated this. So I think we will have to come back to you with, you know, a little bit more details as the acquisition has been approved from a formal point of view, as it has not yet closed. And that being said, you know, we're trying to be very sensitive about, you know, regardless of who the seller is, until it's closed, we prefer to come back to you at a later point with this update. So that includes, you know, additional information about the transaction, including what we expect the cash purchase price to be. The announced purchase price announced by the seller is the gross purchase price, and we expect that number to be offset, including by interim collections. So, please give us a little bit more time, but we expect the transaction hopefully here to close in the coming month. Okay, that is fair. Continuing on the ERC, could you please elaborate and split out how the ERC would look if you adjusted for items that is not non-performing loans? Yes. I mean, you have at the bottom of the slide as well, you have some information, you know, outlining and breaking out the NPL pool. So this is, you know, if you haven't noticed that, it's a relatively small font, but there is some information there. I'm of course happy to come back to you after the call as well with further information, if needed. Thank you. That is very helpful. I didn't see that small font, but now I do. But, zooming in then to the next three years, where 71% of the ERC, if we talk about this, AxFina and other payments from Omnio and other distribution and expected dividends, how much is that of the ERC? If we look at the Addiko share, let's say, of, you know, including in the ERC, I mean, there's dividends expected on a yearly basis. You have, I would say, you know, for the coming three years, the majority being the NPL pool. So as you, you know, might remember, our ERC relative to maybe some of our peers, are relatively front-loaded, both because of the markets or jurisdictions that we're in, but also because of the nature of the, the portfolio that it's secured. So the majority being, the NPL in the first three years. Okay. Thank you, Sorry, just to clarify on AxFina, there is, let's say, no expectations, let's say, in terms of included in the ERC, except for the NPL portfolios that AxFina holds themselves, as also noted there in the footnote. I think you know how to think about it in terms of what AxFina has been acquiring, in terms of NPLs, it's been either, when they have acquired a smaller local servicer and there, you know, that respective servicer held a NPL portfolio. Alternatively, smaller size that they come across, you know, we're talking, you know, a few million EUR that they've then been picking up along the way. ... I see, I see. Thank you. And then, I have a question regarding you write in your report that you have bought back, bonds, at a discount for EUR 60 million. Can you talk about a little bit, your view on further buybacks, given the current cash position, or are you satisfied, with what you have done so far? No, I think it's a—I mean, as mentioned by Andreas in the last earnings call, you know, we continue to, of course, to look at potentially buying back bonds. But this is, you know, of course, always a balancing act between you know, the returns that we can get by you know, actively manage the assets and liabilities, and you know, in this case, then buying back bonds, and then also versus what we have ahead of us and the opportunities that we see in terms of investments. As you know, Razvan mentioned here, both with the purchase for Intrum. But just coming back to what Razvan said as well, as you know, there is volatility in the market, it's of course something that we're monitoring very closely in terms of NPLs coming to the market. You know, as the example with Intrum, and as they've announced, you know, other participants, we believe as well, if not yet announced, there will be opportunities from holders of NPLs that might become, you know, the normal buyers becoming sellers, which might be offering interesting opportunities for us. So I think that's, of course, a continuous balancing act that we're monitoring. I see. But given the closing of this transaction is expected in Q3 of the Romania portfolio. Mm. Could we expect to see further buybacks, or will that be a large bulk of the current cash position? Or what do you expect that transaction to take from the current cash pile? We expect it to be... As mentioned, it will be less, and we believe, than the EUR 17 million announced. I can unfortunately not comment on how much less, but, it will be not as material as, as the current headline number. But in any case, I would say that our anticipated cash position going forward will remain solid, and as a consequence, we'll be able to continue our balancing act that Fredrik was describing. So we'll keep assessing opportunities that come up in the market with active management of our assets and liabilities, our balance sheet. So it does not preclude us from continuing some bond repurchases. Thank you. And then just the last question from my side: regarding Omnio, can you talk a little bit, because it's not clear from my perspective at least, how much that company is producing in terms of revenue or profit on a quarterly basis, or what is the cash burn on Omnio on a quarterly basis, please? I'm going through a detailed analysis of Omnio's position. I would ask you the privilege to come back to you either after this call in a couple of weeks, or we can discuss this topic. We can bring it up in our next earnings call. Sounds perfect. Thank you so much. Thank you. Thank you. The next question comes from Frank Liemann from Sallfort. Please go ahead. Yes. Hi, good morning. The previous speaker, Mr. Brattelius, also mentioned raised a question about Omnio. I had that on my list, too. Can you share with me book value, profitability? What's the prospects? I just feel a little bit uncomfortable in knowing very, very little about this one. As a separate note, I also find it a bit, if I just may say that, I find it a bit challenging in combining it together with Addiko in a kind of a division of operations or business operations. I'm not sure whether these two fit together, but that would be a question. We can answer it now or in the next quarterly call. But I feel super underinformed on Omnio. First of all, I thank you for the question, and I take note of your statement. I think it is absolutely not right for you to feel super underinformed. So we'll take it as a point in to address in our next earnings call. My initial take is that, as I mentioned, embedded finance is a very significant opportunity, one of the fast-growing areas in consumer finance. I think that the strategy and the capabilities of Omnio are very relevant for this space. We're looking now into the optimal ways in which we can direct Omnio so that we rapidly reduce the cash burn, while at the same time, set up a roadmap to generate significant value for the group. How we will do that is indeed something that would require a proper presentation. And I take note- Mm-hmm of both requests, and we'll cover this in our next earnings call. If I may add one thing, Razvan, and that is, a company like Omnio, would that not typically be financed with venture capital and not out of a company that has a long history in collecting on NPLs? That's a bit of a strange element in your portfolio, having Omnio on there. And if I understand what the underlying business is embedded finance, I can see other players in the embedded finance market, basically venture financed, or not having to deliver cash back to the parent. Because the, of course, your balance sheet has been debt financed to a large extent. I guess about 80% of your liability side is paying interest. Yeah. So, my additional question would be: Is that a right asset in this collection of DDM businesses? I leave it here. Thank you very much. I look forward to learn more about that. Thank you. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. So I thank everybody for the participation. We took notes, particularly of the questions on Omnio, and we'll include an update on the roadmap and plans of the group with regards to monetizing the investment in Omnio in our next earnings call. Thank you very much for participating, and we'll see you in a few months. This concludes the conference. You may now disconnect.