DISTRESSED DEBT & ALTERNATIVE INVESTMENTS

1. Corporate Debt Servicer
Large gap in a competitive market:
Corporate NPL in Poland

2. 2
NPL market supply in 2014.
0
10
20
30
40
50
60
70
80
NPL NPL Retail sold NPL Corporate sold
Corporate PLN 33bn
Retail PLN 39bn
PLN 33bn
PLN 39bn
PLN 15bn PLN 1.5bn
Corporate Debt Servicer

3. 3
Why market supply should change – Banking market.
Consolidation of the Banking industry.
Latest transactions
Nordea-PKO
BNP-BGŻ-Fortis-Dominet
PZU-Alior-Meritum-HSBC
Santander-AIG-BZWBK-KB
AnaCap-FM Bank
PeKaO-BPH
GE-BPH
Raiffeisen-EFG
Banks up for sale
GE BPH
Raiffeisen Polbank
BOŚ
Millennium Trends:
Market space for 5 TOP universal Banks
Domestication - rePolonization.
Expansion of the regional players.
Corporate Debt Servicer

4. 4
Why market supply should change – NPL market.
Regional NPL players
expansion:
B2 Holding, Hoist,
Lindorff, PRA.
Economic growth,
increasing lending.
CHF loans issue.
European Commission
pressure on the parent
banks.
Corporate Debt Servicer

5. 5
Why market supply should change – legal environment.
New and liberal consumer insolvency
regulations.
BTE liquidation – bank enforcement title.
Banks will cover the costs of CHF loans
conversion.
Tax on assets project.
The new law on court bailiffs and
enforcement.
Capital Requirements Directive.
Limited interchange fees.
Corporate Debt Servicer

6. 6
Business Opportunities.
Constant development of Corporate and SME NPL
supply 20-30% yearly.
Possible Tailor-made transactions with the prices
between € 10-25m.
The lack of partners for Banks for the largest
transactions, the lack of demand is connected
with the lack of competences among local
players and the lack of financing.
A tax shield is far more important than in Retail
and the Banks accept a neutral effect on the annual
report.
Corporate Debt Servicer

7. 7
What we do?
Pragma Inkaso is a corporate debt market leader, buying commercial liabilities for more than a decade. Pragma
specializes in a field enforcement, CRE, RE, Special Situations and is a leading non-banking factor on the Polish market.
Our Mission Statement:
Challenging the status quo in one of the most competitive markets by tailoring unique
transactions and creating ingenious know how in collection, P1 invests in NPL portfolios
and makes two digit IRR in cash.
Corporate Debt Servicer

8. 8
Acquired portfolios.
SME unsecured V 2014
350 cases
Maturity 1 000 DPD
Already recovered 80% price
Forecast 300%
Corporate partly secured
XI 2014
110 cases
10 RE
Maturity 2 150 DPD
Already recovered 100%
price
Forecast 300%
SME unsecured I 2015
950 cases
Maturity 750 DPD
Already recovered 20% price
Forecast 200%
Corporate partly secured
V 2015 2p.
350 cases
40 RE
Maturity 1 600 DPD
Already recovered 60% price
Forecast 300%
Corporate partly secured
VI 2015 2p.
84 cases
10 RE
Maturity 2 500 DPD
Already recovered 40% price
Forecast 300%
SME partly secured VII 2015
1 600 cases
10 RE
Maturity 1 000 DPD
Already recovered 5% price
Forecast 200%
Corporate partly secured
VII 2015
180 cases
20 RE
Maturity 1 766 DPD
Already recovered 25% price
Forecast 200%
Special Situations and CRE
transactions
Corporate Debt Servicer

9. 9
Competitors.
Kruk
On each short list, schooled by Lehman Brothers,
strong local player.
Hoist, PRA, Lindorff, B2Holding Ultimo, Intrum
Justitia, APS holding, EOS
Private debt investors and their local servicers without
the know-how in corporate.
DTP
Active counterpart.
Getin holding, Best, Kredyt Inkaso, Indos, Vindexus,
EGB, Corpus Iuris
With the ambition to grab this market, still with the
shortfall in competences.
Corporate Debt Servicer

10. 10
Sellers.
Corporate and SME
business line
mBank
(Commerzbank)
BZWBK (Santander)
BPH (GE)
PeKaO (Unicredit)
Alior (PZU)
BGK
Raiffeissen
BOŚ
DB
BGZ BNP (BNP)
Corporate Debt Servicer