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Home Credit B.V.
Condensed Consolidated Interim Financial Report for the three month period ended 31 March 2012
(unaudited)
Home Credit B.V. Condensed Consolidated Interim Financial Report
for the three month period ended 31March 2012
- 2 -
Contents
Condensed Consolidated Interim Financial Statements
Condensed Consolidated Interim Statement of Financial Position 3
Condensed Consolidated Interim Statement of Comprehensive Income 4
Condensed Consolidated Interim Statement of Changes in Equity 5
Condensed Consolidated Interim Statement of Cash Flows 7
Notes to the Condensed Consolidated Interim Financial Statements 8
Home Credit B.V. Condensed Consolidated Interim Statement of Financial Position
as at 31 March 2012
- 3 -
31 Mar 2012 31 Dec 2011 Note TEUR TEUR
ASSETS
Cash and cash equivalents 7 416,656 409,961 Due from banks and other financial institutions 8 273,343 154,413 Loans to customers 9 3,382,512 3,006,903 Financial assets at fair value through profit or loss 10 23,626 35,416 Financial assets available-for-sale 11 495,285 323,795 Current income tax receivables 1,473 11,471 Deferred tax assets 8,865 8,569 Investments in associates 1,033 2,056 Intangible assets 12 43,157 38,776 Property and equipment 13 198,380 173,014 Other assets 14 163,732 117,571
Total assets 5,008,062 4,281,945
LIABILITIES
Current accounts and deposits from customers 15 2,424,199 1,697,277 Due to banks and other financial institutions 16 326,951 528,135 Debt securities issued 17 1,107,333 1,081,431 Financial liabilities at fair value through profit or loss 18 3,191 7,195 Current income tax liabilities 13,858 244 Deferred tax liabilities 347 6,321 Other liabilities 19 166,863 130,091
Total liabilities 4,042,742 3,450,694
EQUITY
Equity attributable to equity holders of the parent Share capital 20 659,020 659,020 Share premium 20 60,253 60,253 Statutory reserves 20 4,216 3,754 Foreign currency translation 20 (34,355) (86,504) Revaluation reserve 20 (104) (95) Other reserves 276,290 194,823
Total equity 965,320 831,251
Total liabilities and equity 5,008,062 4,281,945
Home Credit B.V. Condensed Consolidated Interim Statement of Comprehensive Income
for the three month period ended 31March 2012
- 4 -
3 months ended
31 Mar 2012
3 months ended
31 Mar 2011 Note TEUR TEUR
Continuing operations
Interest income 21 287,747 208,781 Interest expense 21 (77,095) (36,542)
Net interest income 210,652 172,239
Fee and commission income 22 96,705 58,739 Fee and commission expense 23 (18,316) (11,861)
Net fee and commission income 78,389 46,878
Net losses on financial assets and liabilities 24 (4,373) (4,092) Other operating income 25 38,234 16,774
Operating income 322,902 231,799
Impairment losses on financial assets 26 (84,425) (33,553) Net income related to credit risk insurance 7 8 General administrative expenses 27 (124,038) (83,602) Other operating expenses 28 (10,185) (8,705)
Operating expenses (218,641) (125,852)
Profit before tax from continuing operations 104,261 105,947
Income tax expense for continuing operations 29 (22,332) (40,598)
Net profit for the period from continuing operations 81,929 65,349
Discontinued operations
Loss from discontinued operations (net of income tax) - (9,326)
Net profit for the period 81,929 56,023
Currency translation 52,149 12,184 Reclassification of currency translation on subsidiary disposals - 7,941 Revaluation of available-for-sale financial assets (186) 463 Income tax relating to revaluation of available-for-sale financial assets 177 (92)
Other comprehensive income for the period 52,140 20,496
Total comprehensive income for the period 134,069 76,519
The condensed consolidated interim financial statements as set out on pages 3 to 30 were approved by the Board of Directors on 30 May 2012. Alexander Labak Sonia Mihaylova Slavtcheva Chairman of the Board of Directors Member of the Board of Directors
Hom
e C
redi
t B.V
. C
on
den
sed
Con
solid
ate
d In
terim
Sta
tem
en
t of
Ch
ang
es
in E
qu
ity
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 5
-
Attr
ibut
able
to e
quity
hol
ders
of t
he p
aren
t
Sha
re
capi
tal
S
hare
pr
emiu
m
S
tatu
tory
re
serv
es
For
eign
cu
rren
cy
tran
slat
ion
F
air
valu
e re
serv
e
O
ther
re
serv
es
Tot
al e
quity
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
Bal
ance
as
at 1
Jan
uary
20
12
6
59
,02
0
6
0,2
53
3
,75
4
(86
,50
4)
(9
5)
1
94
,82
3
831,
251
Tra
nsfe
rs
-
-
46
2
-
-
(46
2)
-
Tot
al
659,
020
60
,253
4,21
6
(86,
504)
(95)
194,
361
83
1,25
1
Cur
renc
y tr
an
sla
tion
-
-
-
5
2,1
49
-
-
52
,149
Rev
alua
tion
of a
vaila
ble
-fo
r-sa
le
finan
cia
l ass
ets
-
-
-
-
(9)
-
(9
)
Pro
fit fo
r th
e p
erio
d
-
-
-
-
-
81
,929
81,9
29
Tot
al c
ompr
ehen
sive
inco
me
and
expe
nse
for
the
perio
d
-
-
-
52,1
49
(9
)
81,9
29
13
4,06
9
Tot
al c
hang
es
-
-
462
52
,149
(9)
81
,467
134,
069
Bal
ance
as
at 3
1 M
arch
201
2
659,
020
60,2
53
4,
216
(3
4,35
5)
(1
04)
27
6,29
0
965,
320
Hom
e C
redi
t B.V
. C
on
den
sed
Con
solid
ate
d In
terim
Sta
tem
en
t of
Ch
ang
es
in E
qu
ity
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 6
-
A
ttrib
utab
le to
equ
ity h
olde
rs o
f the
par
ent
Sha
re
capi
tal
S
hare
pr
emiu
m
S
tatu
tory
re
serv
es
For
eign
cu
rren
cy
tran
slat
ion
F
air
valu
e re
serv
e
O
ther
re
serv
es
Tot
al e
quity
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
TE
UR
Ba
lanc
e as
at 1
Ja
nuar
y 2
01
1
65
9,0
20
60
,253
2,8
87
(7
6,3
34
)
5,6
18
2
84
,36
4
935,
808
Tra
nsfe
rs
-
-
55
3
-
-
(55
3)
-
Tot
al
659,
020
60
,253
3,44
0
(76,
334)
5,61
8
283,
811
93
5,80
8
Cur
renc
y tr
ansl
atio
n
-
-
-
12
,184
-
-
12,1
84
Rec
lass
ifica
tion
of c
urre
ncy
tran
slat
ion
on
sub
sid
iary
dis
po
sals
-
-
-
7
,94
1
-
-
7,94
1
Rev
alu
atio
n o
f ava
ilab
le-f
or-
sale
fin
anci
al a
sset
s -
-
-
-
3
71
-
37
1
Pro
fit fo
r th
e p
eri
od
-
-
-
-
-
56
,023
56,0
23
Tot
al c
ompr
ehen
sive
inco
me
and
expe
nse
for
the
perio
d
-
-
-
20,1
25
37
1
56,0
23
76
,519
Tot
al c
hang
es
-
-
553
20
,125
371
55
,470
76,5
19
Bal
ance
as
at 3
1 M
arch
201
1
659,
020
60,2
53
3,
440
(5
6,20
9)
5,
989
33
9,83
4
1,01
2,32
7
Home Credit B.V. Condensed Consolidated Interim Statement of Cash Flows
for the three month period ended 31March 2012
- 7 -
3 months ended
31 Mar 2012
3 months ended
31 Mar 2011 Note TEUR TEUR
Net operating cash flow before changes in working capital 290,752 192,290
Cash flows from/(used in) the operations 416,815 (136,387)
Cash flows from/(used in) operating activities 353,245 (205,684)
Cash flows (used in)/from investing activities (198,581) 20,060
Cash flows (used in)/from financing activities (172,482) 350,847
Net decrease/increase in cash and cash equivalents (17,818) 165,223
Cash and cash equivalents at 1 January 409,961 201,024
Effects of exchange rate changes on cash and cash equivalents 24,513 2,398
Cash and cash equivalents at 31 March 7 416,656 368,645
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 8 -
1. Description of the Group Home Credit B.V. (the “Company”) was incorporated on 28 December 1999 in the Netherlands.
Registered office
Strawinskylaan 933 1077 XX Amsterdam The Netherlands
Shareholders Country of incorporation Ownership interest (%) 31 Mar 2012 31 Dec 2011
PPF Group N.V. Netherlands 100.00 100.00 The ultimate controlling party of PPF Group N.V. and of the Company is Mr. P. Kellner.
Consolidated subsidiaries Country of incorporation Ownership interest (%) 31 Mar 2012 31 Dec 2011
Redlione (LLC) Cyprus 100.00 100.00 Home Credit (JSC) Czech Republic 100.00 100.00 Home Credit International (JSC) Czech Republic 100.00 100.00 HC Broker (LLC) Czech Republic 100.00 100.00 Eurasia Capital S.A. 1) Luxemburg 0.00 0.00 Eurasia Structured Finance No.1 S.A. 1),2) Luxemburg 0.00 0.00 Eurasia Credit Card Company S.A. 1), 2) Luxemburg 0.00 0.00 Home Credit Bank (OJSC) Republic of Belarus 100.00 100.00 PPF Home Credit IFN S.A. Romania 100.00 100.00 Home Credit and Finance Bank (LLC) Russian Federation 100.00 100.00 Financial Innovations (LLC) Russian Federation 100.00 100.00 Inko Technopolis (LLC) Russian Federation 100.00 100.00 Home Credit Slovakia (JSC) Slovak Republic 100.00 100.00 Collect-Credit (LLC) Ukraine 100.00 100.00 Homer Software House (LLC) Ukraine 100.00 100.00 Easy Dreams Company Limited Vietnam 100.00 100.00
Associates Country of incorporation Ownership interest (%) 31 Mar 2012 31 Dec 2011
Equifax Credit Services (LLC) Russian Federation 38.14 38.14 Spolecnost pro informacni database (JSC) Czech Republic 26.00 26.00
1) special purpose entities established to facilitate the Group’s issues of debt securities (refer to Note 17) 2) subsidiaries in the process of liquidation
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 9 -
1. Description of the Group (continued) Board of Directors Alexander Labak Chairman Sonia Mihaylova Slavtcheva Member Ivan Svitek Member In May 2012 Ivan Svitek was recalled from his position on the Company’s Board of Directors based on
his own request. Mel Carvill was appointed to the Board of Directors instead of Ivan Svitek, effective 3 May 2012 (see also Note 33).
Principal activities
The principal activities of the Company and its subsidiaries are the provision of consumer financing to private individual customers in the Central European and CIS countries as well as deposit taking, saving and current accounts service and maintenance, payments and other services.
2. Basis of preparation The condensed consolidated interim financial statements for the three month period ended 31 March
2012 comprise the Company and its subsidiaries (together referred to as the “Group”).
(a) Statement of compliance The condensed consolidated interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs), including International Accounting Standards (IASs), promulgated by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) of the IASB as adopted by the European Union.
(b) Basis of measurement The condensed consolidated interim financial statements are prepared on the historic cost basis except
for financial instruments at fair value through profit or loss and financial assets available-for-sale that are measured at fair value. Financial assets and liabilities and non-financial assets and liabilities which are valued at historic cost are stated at amortized cost or historic cost, as appropriate, net of any relevant impairment.
(c) Presentation and functional currency These financial statements are presented in Euro (EUR), which is the Company’s functional currency
and Group’s reporting currency. Financial information presented in EUR has been rounded to the nearest thousand (TEUR).
(d) Changes in accounting policies and comparative figures The comparative figures have been regrouped or reclassified, where necessary, on a basis consistent
with the current period.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 10 -
2. Basis of preparation (continued)
(e) Use of estimates and judgments The preparation of the condensed consolidated interim financial statements in accordance with IFRS
requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of the judgments about the carrying values of assets and liabilities that cannot readily be determined from other sources. The actual values may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
(f) Basis of consolidation
(i) Subsidiaries Subsidiaries are those enterprises controlled by the Group. Control exists when the Group has the
power, directly or indirectly, to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control effectively commences until the date that control effectively ceases. Legal restructuring and mergers involving companies under common control are accounted for using consolidated net book values, consequently no adjustment is made to carrying amounts in the consolidated accounts and no goodwill arises on such transactions.
(ii) Associates Associates are those enterprises in which the Group has significant influence, but not control, over the
financial and operating policies. The consolidated financial statements include the Group’s share of the total recognized gains and losses of associates on an equity accounted basis, from the date that significant influence effectively commences until the date that significant influence effectively ceases. When the Group’s share of losses exceeds the Group’s interest in the associate, that interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate.
(iii) Special purpose entities The Group has established a number of special purpose entities (SPEs) for the purpose of raising
finance. The Group does not have any direct or indirect shareholdings in these entities. These SPEs are controlled by the Group through the predetermination of the activities of SPEs, having rights to obtain the majority of benefits of the SPEs, and retaining the majority of the residual risks related to the SPEs.
(iv) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealized gains arising from intra-group transactions,
are eliminated in the consolidated financial statements. Unrealized gains arising from transactions with associates are eliminated against the investment in the associate to the extent of the Group’s interest in the enterprise. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 11 -
3. Significant accounting policies The significant accounting policies applied in the preparation of these condensed consolidated interim
financial statements are consistent with those used in the preparation of the Group's annual financial statements for the year ended 31 December 2011. The accounting policies have been applied consistently to all periods presented in these condensed consolidated interim financial statements, and have been applied consistently by Group entities.
(a) Standards, interpretations and amendments to published standards that are not yet effective and are relevant for the Group’s financial statements
A number of new Standards, amendments to Standards and Interpretations were not yet effective as of 31 March 2012, and have not been applied in preparing these financial statements. Of these pronouncements, potentially the following will have an impact on the Group’s operations. The Group plans to adopt these pronouncements when they become effective. The Group is in the process of analysing the likely impact on its financial statements. IFRS 9 Financial Instruments (effective from 1 January 2015) This new standard was published on 12 November 2009 as part of phase I of the IASB’s comprehensive project to replace IAS 39. It deals with classification and measurement of financial assets. The requirements of this standard represent a significant change from the existing requirements in IAS 39 in respect of financial assets. The standard contains two primary measurement categories for financial assets: amortised cost and fair value. A financial asset would be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, and the asset’s contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding. All other financial assets would be measured at fair value. The standard eliminates the existing IAS 39 categories of held to maturity, available for sale and loans and receivables. In October 2010 the IASB added to IFRS 9 the requirements for classification and measurement of financial liabilities while most of the requirements in IAS 39 were carried forward unchanged to IFRS 9. IFRS 9 has not yet been adopted by the EU. Amendment to IAS 1 Presentation of Financial Statements (effective from 1 July 2012) The amendments to IAS 1 titled Presentation of Items of Other Comprehensive Income: - require that an entity present separately the items of other comprehensive income that would be
reclassified to profit or loss in the future if certain conditions are met from those that would never be reclassified to profit or loss;
- do not change the existing option to present profit or loss and other comprehensive income in two statements; and
- change the title of the statement of comprehensive income to the statement of profit or loss and other comprehensive income. However, an entity is still allowed to use other titles.
IFRS 10 Consolidated Financial Statements (effective from 1 January 2013) IFRS 12 Disclosure of Interests in Other Entities (effective from 1 January 2013) In May 2011 IASB issued these two new standards as improvements to the accounting requirements for off balance sheet activities and joint arrangements. These standards have not yet been adopted by the EU. IFRS 10 introduces a new approach to determining which investees should be consolidated and provides a single model to be applied in the control analysis for all investees. An investor controls an investee when: - it is exposed or has rights to variable returns from its involvement with that investee; - it has the ability to affect those returns through its power over that investee; and - there is a link between power and returns. Control is reassessed as facts and circumstances change. IFRS 10 supersedes IAS 27 Consolidated and Separate Financial Statements (as amended in 2008) and SIC-12 Consolidation – Special Purpose Entities.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 12 -
3. Significant accounting policies (continued)
IAS 27 Separate Financial Statements was issued concurrently with IFRS 10. IAS 27 (2011) carries forward the existing accounting and disclosure requirements for separate financial statements, with some minor clarifications.
IFRS 12 contains the disclosure requirements for entities that have interests in subsidiaries, joint arrangements (i.e. joint operations or joint ventures), associates and/or unconsolidated structured entities, aiming to provide information to enable users to evaluate: - the nature of, and risks associated with, an entity’s interests in other entities; and - the effects of those interests on the entity’s financial position, financial performance and cash flows. IAS 28 Investments in Associates and Joint Ventures (effective from 1 January 2013) This amended standard supersedes IAS 28 Investments in Associates (2008). IAS 28 (2011) makes the following amendments: - IFRS 5 applies to an investment, or a portion of an investment, in an associate or a joint venture that
meets the criteria to be classified as held for sale; and - on cessation of significant influence or joint control, even if an investment in an associate becomes an
investment in a joint venture or vice versa, the entity does not remeasure the retained interest. IFRS 13 Fair Value Measurement (effective from 1 January 2013) This new standard was issued in May 2011. It replaces the fair value measurement guidance contained in individual IFRSs with a single source of fair value measurement guidance. It defines fair value, establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements. It explains how to measure fair value when it is required or permitted by other IFRSs. It does not introduce new requirements to measure assets or liabilities at fair value, nor does it eliminate the practicability exceptions to fair value measurements that currently exist in certain standards. IFRS 13 has not yet been adopted by the EU.
4. Financial risk management All aspects of the Group`s financial risk management objectives and policies are consistent with those
disclosed in the Group`s consolidated financial statements for the year ended 31 December 2011.
5. Discontinued operations
The Group’s 100% ownership interest in Home Credit Bank (PJSC) was subject to a sales transaction entered into on 3 December 2010 and completed on 31 January 2011. Net loss from discontinued operations of TEUR 9,326 for the three month period ended 31 March 2011 represents the loss on the sale of Home Credit Bank (PJSC). The loss on the sale includes the transfer of negative foreign currency translation attributable to Home Credit Bank (PJSC) from equity to net loss from discontinued operations of TEUR 7,941.
Hom
e C
redi
t B.V
. N
ote
s to
the C
ond
ense
d C
onso
lida
ted
Inte
rim
Fin
an
cia
l Sta
tem
en
ts
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 1
3 -
6.
Seg
men
t rep
ortin
g S
egm
ent
info
rmat
ion
is
pre
sen
ted
in r
esp
ect
of
the
Gro
up
’s g
eogr
aph
ical
seg
men
ts b
ased
on
th
e G
rou
p’s
man
age
men
t an
d i
nte
rnal
rep
ort
ing
stru
ctu
re.
Seg
men
t in
form
atio
n i
n r
esp
ect
of
the
Gro
up
’s b
usi
nes
s se
gm
ents
is n
ot p
rese
nte
d a
s th
e G
roup
’s o
per
atio
ns
are
con
cen
trat
ed in
on
e m
ain
bu
sin
ess
seg
men
t o
nly
, co
nsu
mer
len
din
g p
rod
uct
s.
Th
e G
rou
p o
per
ates
in
fiv
e p
rinci
pal
geo
grap
hic
al a
reas
, th
e C
zech
Rep
ublic
, th
e S
lova
k R
epu
blic
, th
e R
uss
ian
Fed
erat
ion
, U
krai
ne
(un
til t
he
sale
of
Ho
me
Cre
dit
Ban
k (P
JSC
), w
hic
h w
as
com
ple
ted
on
31
Jan
uar
y 2
011
), a
nd
th
e R
epub
lic o
f B
elar
us.
Th
e ge
ogr
aph
ical
seg
men
ts a
re b
ased
on
the
geo
grap
hic
al l
oca
tion
of
asse
ts w
hic
h c
orr
esp
ond
s to
th
e ge
ogr
aph
ical
lo
catio
n o
f cu
sto
mer
s at
th
e sa
me
time.
S
egm
ent
resu
lts in
clu
de
item
s d
irec
tly a
ttrib
uta
ble
to
a s
eg
men
t as
wel
l as
tho
se t
hat
can
be
allo
cate
d o
n a
rea
son
able
bas
is.
Inte
r-se
gm
ent
pric
ing
is d
eter
min
ed o
n a
n a
rm’s
len
gth
bas
is.
Th
e G
rou
p’s
Exe
cutiv
e C
om
mitt
ee
is t
he
chie
f op
erat
ing
dec
isio
n m
ake
r. T
he
Co
mm
ittee
re
vie
ws
the
Gro
up’
s i
nte
rnal
rep
ort
ing
on a
reg
ula
r b
asis
to
ass
ess
per
fo
rman
ce o
f in
div
idu
al s
egm
ents
an
d
to a
lloca
te th
e G
rou
p’s
res
ourc
es a
cco
rdin
gly.
Cu
rren
t an
d d
efer
red
inco
me
tax
asse
ts a
nd
liab
ilitie
s ar
e ex
clu
ded
fro
m s
egm
ent
asse
ts a
nd
liab
ilitie
s.
Info
rmat
ion
on
indi
vid
ual
seg
men
ts is
pre
sen
ted
bef
ore
co
nso
lidat
ion
elim
inat
ion
s (w
hic
h a
re p
rese
nte
d in
a s
epar
ate
colu
mn
).
R
ussi
an
Fed
erat
ion
Cze
ch
Rep
ublic
S
lova
k R
epub
lic
Bel
arus
U
krai
ne
Oth
er
Una
lloca
ted*
E
limin
atio
ns
Con
solid
ated
3
mon
ths
ende
d 31
Mar
201
2
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
Rev
en
ue fr
om
ext
ern
al c
ust
om
ers
3
54
,92
9 7
,58
1 1
2,4
60
7,6
26
4 2
23
1,6
29
- 3
84
,45
2 In
ter-
seg
me
nt r
eve
nue
2
8
- -
- -
- 6
44
(67
2)
-
T
otal
rev
enue
35
4,95
7 7,
581
12,4
60
7,62
6 4
223
2,27
3 (6
72)
384,
452
Net
inte
rest
inco
me
fro
m e
xter
nal
cust
om
ers
1
95
,53
7 4
,20
8 9
,54
4 3
,59
2 4
22
3 (2
,456
) -
2
10
,65
2 In
ter-
seg
me
nt n
et i
nter
est
inco
me
2
8 -
(46
9)
(21
1)
- -
64
4 8
-
T
otal
net
inte
rest
inco
me
195,
565
4,20
8 9,
075
3,38
1 4
223
(1,8
12)
8 21
0,65
2
In
com
e ta
x ex
pen
se
(15
,82
3)
(5
,900
) (4
50
) (4
3)
- (2
49
) 1
33
-
(22
,33
2)
Seg
men
t res
ult
60,1
21 24
,733
1,
818
(1,1
72)
(77)
2,
702
(6,1
96)
- 81
,929
*
Una
lloca
ted
ite
ms
rep
rese
nt it
em
s o
f re
ven
ue,
op
era
ting
exp
ense
, a
sse
ts,
liab
ilitie
s a
nd e
qui
ty w
hic
h ca
nno
t be
reas
on
ably
allo
cate
d to
the
geo
grap
hic
al s
egm
ent
s.
Hom
e C
redi
t B.V
. N
ote
s to
the C
ond
ense
d C
onso
lida
ted
Inte
rim
Fin
an
cia
l Sta
tem
en
ts
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 1
4 -
6.
Seg
men
t rep
ortin
g (c
ontin
ued)
R
ussi
an
Fed
erat
ion
Cze
ch
Rep
ublic
S
lova
k R
epub
lic
Bel
arus
U
krai
ne
Oth
er
Una
lloca
ted*
E
limin
atio
ns
Con
solid
ated
3
mon
ths
ende
d 31
Mar
201
2
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
3 m
onth
s en
ded
31 M
ar 2
012
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
Dep
reci
atio
n an
d a
mo
rtiz
atio
n
(6,5
09)
(1
96
) (9
7)
(28
1)
(93
) (2
,712
) -
- (9
,888
) O
the
r si
gni
fican
t no
n-c
ash
exp
ens
es*
* (8
0,4
83
) (9
73
) (2
,817
) (1
53
) 1
- -
- (8
4,4
25
) C
apita
l exp
end
iture
(2
3,2
81
)
(87
7)
(11
7)
(74
) (4
3)
(3,5
45)
- -
(27
,93
7)
R
ussi
an
Fed
erat
ion
Cze
ch
Rep
ublic
S
lova
k R
epub
lic
Bel
arus
U
krai
ne
Oth
er
Una
lloca
ted*
E
limin
atio
ns
Con
solid
ated
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
31 M
ar 2
012
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
Seg
men
t ass
ets
4,41
0,80
5
173,
897
186,
345
75,4
05
2,68
9 54
,872
96
1,15
4 (8
67,4
43)
4,99
7,72
4
Inve
stm
ent
s in
ass
oci
ates
1
,03
3
- -
- -
- -
- 1
,03
3
Seg
men
t lia
bilit
ies
3,
641,
533
75,8
24
150,
919
52,8
26
305
30,0
69
202,
359
(125
,298
) 4,
028,
537
Seg
men
t equ
ity
765,
936
87,8
39
43,0
29
22,5
53
2,38
4 25
,256
75
8,79
5 (7
40,4
72)
965,
320
*
Una
lloca
ted
ite
ms
rep
rese
nt it
em
s o
f re
ven
ue,
op
era
ting
exp
ense
, a
sse
ts,
liab
ilitie
s a
nd e
qui
ty w
hic
h ca
nno
t be
reas
on
ably
allo
cate
d to
the
geo
grap
hic
al s
egm
ent
s.
**
Oth
er s
igni
fican
t no
n-c
ash
exp
ense
s ar
e re
pre
sent
ed
by
imp
air
me
nt lo
sse
s o
n fin
anc
ial a
nd n
on
-fin
anc
ial a
sset
s.
Hom
e C
redi
t B.V
. N
ote
s to
the C
ond
ense
d C
onso
lida
ted
Inte
rim
Fin
an
cia
l Sta
tem
en
ts
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 1
5 -
6.
Seg
men
t rep
ortin
g (c
ontin
ued)
R
ussi
an
Fed
erat
ion
Cze
ch
Rep
ublic
S
lova
k R
epub
lic
Bel
arus
U
krai
ne
Oth
er
Una
lloca
ted*
E
limin
atio
ns
Con
solid
ated
3
mon
ths
ende
d 3
1 M
ar 2
011
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
3 m
onth
s en
ded
31
Mar
201
1
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
Rev
en
ue fr
om
ext
ern
al c
ust
om
ers
2
38
,03
0 7
,51
1 1
1,3
96
8,2
91
- 1
10
2,1
82
-
26
7,5
20
In
ter-
seg
me
nt r
eve
nue
2
81
-
- -
- -
65
8
(93
9)
-
Tot
al r
even
ue
238,
311
7,51
1 11
,396
8,
291
- 11
0 2,
840
(939
) 26
7,52
0
Net
inte
rest
inco
me
fro
m
ext
erna
l cus
tom
ers
15
4,8
37
4,2
03
8,7
12
6,3
96
- 1
10
(2,0
19)
-
17
2,2
39
Inte
r-se
gm
ent
ne
t int
ere
st in
com
e
28
1 (3
04
) (4
17
) (2
15
) -
- 6
58
(3)
-
T
otal
net
inte
rest
inco
me
155,
118
3,89
9 8,
295
6,18
1 -
110
(1,3
61)
(3)
172,
239
Inco
me
tax
exp
ense
(2
1,5
17
)
(1,6
60)
(53
5)
(86
3)
- 1
1 (1
6,0
34
) -
(4
0,5
98
)
Seg
men
t res
ult
78,5
90 5,
935
2,27
3 2,
758
(9,4
20)
1,04
6 (2
5,15
9)
- 56
,023
D
epre
ciat
ion
and
am
ort
iza
tion
(4
,391
)
(11
5)
(72
) (2
65
) (1
37
) (3
,399
) -
- (8
,379
) O
the
r si
gni
fican
t no
n-c
ash
exp
ens
es*
* (2
9,7
48
) (1
,149
) (2
,784
) 1
21
6 -
- -
(33
,55
4)
Cap
ital e
xpe
nditu
re
(3,4
24)
(1
33
) (1
11
) (9
27
) (6
) (2
,330
) -
- (6
,931
)
*
U
nallo
cate
d it
em
s re
pre
sent
ite
ms
of r
eve
nue
, o
per
atin
g ex
pen
se,
ass
ets
, lia
bili
ties
and
eq
uity
wh
ich
can
not b
e re
aso
nab
ly a
lloca
ted
to th
e ge
ogr
aph
ical
seg
me
nts.
**
Oth
er s
igni
fican
t no
n-c
ash
exp
ense
s ar
e re
pre
sent
ed
by
imp
air
me
nt lo
sse
s o
n fin
anc
ial a
nd n
on
-fin
anc
ial a
sset
s.
Hom
e C
redi
t B.V
. N
ote
s to
the C
ond
ense
d C
onso
lida
ted
Inte
rim
Fin
an
cia
l Sta
tem
en
ts
for
the th
ree m
on
th p
erio
d en
ded
31
Ma
rch
2012
- 1
6 -
6.
Seg
men
t rep
ortin
g (c
ontin
ued)
R
ussi
an
Fed
erat
ion
Cze
ch
Rep
ublic
S
lova
k R
epub
lic
Bel
arus
U
krai
ne
Oth
er
Una
lloca
ted*
E
limin
atio
ns
Con
solid
ated
31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1 31
Dec
201
1
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
T
EU
R
TE
UR
Seg
men
t ass
ets
3,71
8,05
9
169,
105
182,
880
74,4
51
2,77
3 49
,059
92
3,77
1 (8
58,1
93)
4,26
1,90
5
In
vest
me
nts
in a
sso
ciat
es
2,0
56
-
- -
- -
- -
2,0
56
Seg
men
t lia
bilit
ies
2,
995,
954
68,8
60
149,
230
51,8
63
221
25,8
45
196,
113
(43,
957)
3,
444,
129
Seg
men
t equ
ity
731,
386
95,0
84
41,2
11
22,5
94
2,55
2 23
,462
72
7,64
8 (8
12,6
86)
831,
251
*
Una
lloca
ted
ite
ms
rep
rese
nt it
em
s o
f re
ven
ue,
op
era
ting
exp
ense
, a
sse
ts,
liab
ilitie
s a
nd e
qui
ty w
hic
h ca
nno
t be
reas
on
ably
allo
cate
d to
the
geo
grap
hic
al s
egm
ent
s.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 17 -
7. Cash and cash equivalents 31 Mar 2012 31 Dec 2011 TEUR TEUR
Cash on hand 117,978 149,639 Current accounts 174,409 114,891 Current accounts with central banks 11,590 130,110 Placements with financial institutions due within one month 112,679 15,321
416,656 409,961
8. Due from banks and other financial institutions 31 Mar 2012 31 Dec 2011 TEUR TEUR
Loans and term deposits with financial institutions due in more than one month
213,469 135,870
Loans and advances provided under repo operations 30,507 - Minimum reserve deposits with central banks 29,367 18,543
273,343 154,413
The minimum reserve deposits are mandatory non-interest bearing deposits calculated in accordance with regulations issued by the CBR and the NBRB and whose withdrawals are restricted.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 18 -
9. Loans to customers 31 Mar 2012 31 Dec 2011 TEUR TEUR Gross amount Cash loan receivables 1,870,801 1,469,589 POS loan receivables 1,154,077 1,156,028 Revolving loan receivables 527,662 485,841 Mortgage loan receivables 111,076 120,783 Car loan receivables 89,526 81,909 Loans to corporations 4,980 4,561 Other 3,457 998
3,761,579 3,319,709 Collective allowances for impairment Cash loan receivables (198,853) (142,785) POS loan receivables (103,277) (99,509) Revolving loan receivables (55,447) (49,149) Mortgage loan receivables (8,855) (9,383) Car loan receivables (10,824) (10,116) Loans to corporations (297) (233) Other (429) (411)
(377,982) (311,586) Specific allowances for impairment Loans to corporations (1,085) (1,220)
(1,085) (1,220)
3,382,512 3,006,903
In 2009 the Group sold two pools of loan receivables to a related party. The sales continued in 2010 and 2011. The receivables sold were derecognized by the Group and the right to receive the contingent part of the sales price was recognized as an available-for-sale asset and was measured at fair value. In January 2012 the receivables sale agreements were amended. Based on the amendments, the Group sells its future receivables at a fixed price above their face value which is regularly agreed between the parties on arms-length principles. The future contingent purchase price is no longer paid for future receivables or receivables sold in the past by the Group. The Group obtained the right to receive TEUR 56,152 in cash as a compensation for the future sales price component for the receivables assigned prior to the amendments. The gain of TEUR 26,239 recognized in connection with the amendment of agreements is reported under other operating income, refer to Note 25. POS loan receivables and cash loan receivables of TEUR 102,036 (31 December 2011: TEUR 100,077), revolving loan receivables of TEUR 72,121 (31 December 2011: TEUR 73,010), car loans receivables of TEUR 45,382 (31 December 2011: TEUR 29,384) and mortgage loan receivables of TEUR 0 (31 December 2011: TEUR 17,471) were pledged as collaterals for bank loan facilities (refer to Note 16).
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 19 -
10. Financial assets at fair value through profit or loss 31 Mar 2012 31 Dec 2011 TEUR TEUR
Positive fair value of derivative instruments 23,626 35,416
23,626 35,416 The Group classifies all derivative financial instruments as held for trading.
11. Financial assets available-for-sale 31 Mar 2012 31 Dec 2011 TEUR TEUR
Debt securities 484,685 283,982 Contingent part of sales price for loan receivables sold - 29,913 Equity securities 10,600 9,900
495,285 323,795
The equity securities shown above represent a 9.99% equity interest in Home Credit Bank (JSC), a bank incorporated in the Republic of Kazakhstan.
12. Intangible assets 31 Mar 2012 31 Dec 2011 TEUR TEUR
Acquisition cost 108,984 97,627 Accumulated amortisation (65,827) (58,851)
Carrying amount 43,157 38,776
13. Property and equipment 31 Mar 2012 31 Dec 2011 TEUR TEUR
Acquisition cost 294,172 258,726 Accumulated depreciation (95,792) (85,712)
Carrying amount 198,380 173,014
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 20 -
14. Other assets 31 Mar 2012 31 Dec 2011 TEUR TEUR
Outstanding selling price for receivables 51,561 18,820 Accrued income from insurance fees 37,751 32,817 Trade receivables and settlement with suppliers 33,410 30,169 Prepaid expenses 25,797 23,450 Goods held for resale 6,862 5,113 Other taxes receivable 4,555 4,196 Other 3,867 3,075
163,803 117,640
Specific allowances for impairment on settlement with suppliers (71) (69) 163,732 117,571
15. Current accounts and deposits from customers 31 Mar 2012 31 Dec 2011 TEUR TEUR
Term deposits 2,188,355 1,450,349 Current accounts and demand deposits 235,844 246,928
2,424,199 1,697,277
16. Due to banks and other financial institutions 31 Mar 2012 31 Dec 2011 TEUR TEUR
Unsecured loans 181,105 365,188 Secured loans 135,248 151,153 Other balances 10,598 11,794
326,951 528,135
Out of the secured loans stated above, the balance of TEUR 46,555 (31 December 2011: TEUR 49,925)
was secured by pledge of revolving loan receivables, the balance of TEUR 88,693 (31 December 2011: TEUR 85,996) was secured by pledge of POS loan receivables, cash loan receivables and car loan receivables, and the balance of TEUR 0 (31 December 2011: TEUR 15,232) was secured by pledge of mortgage loan receivables.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 21 -
17. Debt securities issued Amount outstanding
Interest
rate Final
maturity 31 Mar
2012 31 Dec
2011 TEUR TEUR
Unsecured CZK bond issue 3 of MCZK 4,000 Variable June 2012 103,772 97,153
Unsecured RUB bond issue 5 of MRUB 4,000 Variable April 2013 100,382 94,417
Loan participation notes issue 6 of MUSD 500 Fixed March 2014 372,567 390,912
Stock exchange RUB bond issue 01 of MRUB 3,000
Variable April 2014 77,723 73,060
Stock exchange RUB bond issue 03 of MRUB 4,000
Variable April 2014 103,094 96,967
Unsecured RUB bond issue 6 of MRUB 5,000 Variable June 2014 127,379 119,727
Unsecured RUB bond issue 7 of MRUB 5,000 Variable April 2015 129,293 121,593
Unsecured CZK bond issue 4 of MCZK 2,900 Fixed September 2015 93,123 87,602
1,107,333 1,081,431
18. Financial liabilities at fair value through profit or loss 31 Mar 2012 31 Dec 2011 TEUR TEUR
Negative fair value of derivative instruments 3,191 7,195
3,191 7,195 The Group classifies all derivative financial instruments as held for trading.
19. Other liabilities 31 Mar 2012 31 Dec 2011 TEUR TEUR
Accrued employee compensation 73,816 48,344 Settlement with suppliers 50,156 44,663 Other taxes payable 18,690 13,337 Deferred income and prepayments 13,925 10,539 Accrued expenses 3,144 5,811 Provisions - 1,141 Other 7,132 6,256
166,863 130,091
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 22 -
20. Equity At 31 March 2012 the share capital of the Group comprised 1,250,000,000 (31 December 2011:
1,250,000,000) ordinary shares at a par value of EUR 0.57 (31 December 2011: EUR 0.57), of which 1,156,174,806 (31 December 2011: 1,156,174,806) shares were issued and fully paid. All issued shares bear equal voting rights. The holders of shares are entitled to receive dividends when declared. No dividends can be distributed if distributable reserves are negative. In May 2012 the Company paid to its sole shareholder a 2011 dividend of TEUR 7,476 and 2012 interim dividend of TEUR 100,000 with amounts per one share of EUR 0.01 and EUR 0.09 respectively (see Note 33). The creation and use of the statutory reserves is limited by legislation and the articles of each company within the Group. The legal reserve fund is not available for distribution to the shareholders.
The translation reserve comprises foreign exchange differences arising from translation of the financial statements of companies within the Group with a functional currency other than the presentation currency. The translation reserve is not available for distribution to the shareholders.
Fair value reserve represents the revaluation deficit, net of deferred tax, recognized on changes in the fair value of financial assets available for sale. The fair value reserve is not available for distribution to the shareholders.
21. Interest income and interest expense 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR Interest income Cash loan receivables 143,277 55,658 POS loan receivables 85,204 107,071 Revolving loan receivables 38,861 31,150 Car loan receivables 5,300 4,000 Mortgage loan receivables 3,152 4,400 Financial instruments available-for-sale 7,888 2,842 Due from banks and other financial institutions 3,962 3,592 Other 103 68
287,747 208,781
Interest expense Deposits from customers 48,316 9,982 Debt securities issued 22,152 23,599 Due to banks and other financial institutions 6,627 2,961
77,095 36,542
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 23 -
22. Fee and commission income 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Insurance commissions 67,377 32,416 Cash transactions 10,933 6,887 Penalty fees 10,535 11,007 Customer payment processing and account maintenance 6,035 6,202 Retailers commissions 1,721 2,198 Other 104 29
96,705 58,739
23. Fee and commission expense 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Commissions to retailers 12,097 7,830 Cash transactions 3,415 1,842 Payment processing and account maintenance 1,491 1,331 Other 1,313 858
18,316 11,861
24. Net losses on financial assets and liabilities 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Net foreign currency gains/(losses) 7,313 (7,254) Net trading gains/(losses) on other financial assets 96 (51) Net (losses)/gains on derivatives (11,782) 3,213
(4,373) (4,092)
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 24 -
25. Other operating income 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Gains on disposal of loan receivables 34,409 11,333 Income from other services provided 2,371 4,260 Income from associates 528 - Loss on monetary position (847) - Other 1,773 1,181 38,234 16,774
Gains on disposal of loan receivables for the three-month period ended 31 March 2012 include the gain of TEUR 26,239 recognized in connection with the amendment of the receivables sale agreements (see Note 9). Loss on monetary position represents the effect of application of IAS 29 – Financial Reporting in Hyperinflationary Economies for Home Credit Bank (OJSC) incorporated in the Republic of Belarus.
26. Impairment losses on financial assets 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Cash loan receivables 58,313 8,985 POS loan receivables 20,789 19,724 Revolving loan receivables 6,490 3,144 Car loan receivables 888 1,634 Mortgage loan receivables (1,943) 90 Other financial assets (112) (24) 84,425 33,553
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 25 -
27. General administrative expenses 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Employee compensation 63,036 41,144 Rental, maintenance and repair expense 14,714 6,870 Payroll related taxes (including pension contributions) 12,731 10,985 Telecommunication and postage 9,488 7,298 Advertising and marketing 8,331 3,387 Professional services 4,815 5,493 Information technologies 2,579 2,399 Travel expenses 2,456 1,375 Taxes other than income tax 1,203 1,189 Other 4,685 3,462
124,038 83,602
28. Other operating expenses 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Depreciation and amortization 9,888 8,379 Loss on disposal of property, plant, equipment, and intangible assets 297 325 Impairment losses on other assets - 1
10,185 8,705
29. Income tax expense 3 months
ended 31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Current tax expense 28,574 33,369 Deferred tax expense (6,242) 7,229
Total income tax expense from continuing operations in the statement of comprehensive income 22,332 40,598
Current tax expense in the three-month period ended 31 March 2011 includes TEUR 16,450 of withholding tax paid on dividends received. No such expenses were incurred in the three-month period ended 31 March 2012.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 26 -
30. Commitments The Group has outstanding commitments to extend credit. These commitments take the form of
approved credit limits related to customer’s revolving loan accounts, POS loan facilities, cash loan facilities, overdraft facilities and term loan facilities.
31 Mar 2012 31 Dec 2011 TEUR TEUR
Revolving loan commitments 931,047 836,629 POS loan commitments 21,810 23,680 Cash loan commitments 6,898 6,281
959,755 866,590
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.
31. Contingencies The taxation systems in the Russian Federation and in the Republic of Belarus are relatively new and are
characterized by frequent changes in legislation which are subject to varying interpretation by different tax authorities. Taxes are subject to review and investigation by a number of authorities, which have the authority to impose severe fines, penalties and interest charges. A tax year remains open for review by the tax authorities during several subsequent calendar years. Recent events within the Russian Federation and the Republic of Belarus suggest that the tax authorities are taking a more assertive position in their interpretation and enforcement of tax legislation. The facts mentioned above may create tax risks in respective countries that are substantially more significant than in other countries. Management believes that it has provided adequately for tax liabilities based on its interpretations of applicable Russian and Belarusian tax legislation, official pronouncements and court decisions.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 27 -
32. Related party transactions The Group has a related party relationship with its ultimate parent company PPF Group N.V., and its
subsidiaries and associates. Related party transactions are executed on an arm’s length basis.
(a) Transactions with the parent company Amounts included in the statement of financial position in relation to transactions with the parent
company are as follows:
31 Mar 2012 31 Dec 2011 TEUR TEUR
Due from banks and other financial institutions 103,001 64,070
Other liabilities - (298)
103,001 63,772
Amounts included in the statement of comprehensive income in relation to transactions with the parent company are as follows:
3 months ended
31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Interest income 1,387 1,917
1,387 1,917
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 28 -
32. Related party transactions (continued)
(b) Transactions with fellow subsidiaries Amounts included in the statement of financial position in relation to transactions with fellow
subsidiaries are as follows:
31 Mar 2012 31 Dec 2011 TEUR TEUR
Cash and cash equivalents 14,906 10,897
Due from banks and other financial institutions 20,202 8,879
Loans to customers 3,813 4,886
Financial assets available-for-sale - 29,911
Financial assets at fair value through profit or loss 3,206 576
Other assets 55,824 22,483
Due to non-banks - (23,952)
Due to banks and other financial institutions (24,204) (33,006)
Debt securities issued (43,750) (41,745)
Financial liabilities at fair value through profit or loss (5,245) (4,664)
Other liabilities (2,211) (7,168)
22,541 (32,903)
Amounts included in the statement of comprehensive income in relation to transactions with fellow subsidiaries are as follows:
3 months ended
31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Interest income 33 45
Interest expense (637) (1,565)
Fee and commission income 489 352
Fee and commission expense (3,189) (2,150)
Net (loss)/gain on financial assets 155 678
Other operating income 48,575 15,101
General administrative expenses (853) (1,988)
44,573 10,473
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 29 -
32. Related party transactions (continued)
(c) Transactions with the parent company’s associates Amounts included in the statement of financial position in relation to transactions with the parent
company’s associates are as follows:
31 Mar 2012 31 Dec 2011 TEUR TEUR
Cash and cash equivalents 8 8
Financial assets available-for-sale 1,572 1,568
Other assets - 27,656
Due to banks and other financial institutions (388) (39,534)
Debt securities issued (184,259) (222,377)
Other liabilities (475) (329)
(183,542) (233,008)
Amounts included in the statement of comprehensive income in relation to transactions with the parent company’s associates are as follows:
3 months ended
31 Mar 2012
3 months ended
31 Mar 2011 TEUR TEUR
Interest income 25 130
Interest expense (3,745) (718)
Fee and commission income (671) 28,713
Net income related to credit risk insurance 7 8
Other operating income - 167
General administrative expenses (389) (339)
(4,773) 27,961
(d) Transactions with key management personnel Amounts included in the statement of comprehensive income in relation to transactions with members of
key management are long-term benefits of TEUR 658 (three months ended 31 March 2011: TEUR 270) and short-term benefits of TEUR 4,793 (three months ended 31 March 2011: TEUR 4,458), comprising salaries and bonuses. As at 31 March 2012 the balance of loans to members of the key management was TEUR 15 (31 December 2011: TEUR 48). The members of the Board of Directors of the Company and key management of its subsidiaries are considered as the key management of the Group.
Home Credit B.V. Notes to the Condensed Consolidated Interim Financial Statements
for the three month period ended 31 March 2012
- 30 -
33. Subsequent events In May 2012 the Company paid to its sole shareholder a 2011 dividend of TEUR 7,476 and 2012 interim
dividend of TEUR 100,000 with amounts per one share of EUR 0.01 and EUR 0.09 respectively (see Note 20). In May 2012 Ivan Svitek was recalled from his position on the Company’s Board of Directors based on his own request. Mel Carvill was appointed to the Board of Directors instead of Ivan Svitek, effective 3 May 2012 (see Note 1).