years of experience
clear strategy
professional team
PPF Group profile
The international financial group PPF successfully manages
assets worth more than EUR 8 billion.
PPF Group focuses on insurance, consumer finance and provides
complex services in asset management.
PPF Group develops its operations in the Czech Republic,
Slo-vakia, Russia, Ukraine, Kazakhstan, Belarus, Cyprus, Vietnam
and China.
The corporate ownership and decision making structure of PPF
Group is based in the Netherlands. The group’s key holding
company that defines strategic decisions regarding the entire
group’s activities is the Amsterdam-based PPF Group N.V. The
company is the direct sole shareholder of CZI Holdings N.V. (hol-
ding company for all insurance business-related companies
inclu-ding Česká pojišťovna a.s.) and an indirect owner of a 100% stake
in Home Credit B.V. (holding company for all consumer finance
companies within the Home Credit Group). PPF Group N.V. is
also the majority owner of PPF banka a.s. and PPF a.s., the
prin-cipal advisory company serving the entire PPF Group.
PPF Group has grown into a respected financial group, which
builds its business on values such as professionalism, stability,
responsibility, flexibility and credibility. Corporate culture of the
group is based on tradition, experience, teamwork and, most of
all, high qualification and loyalty of its employees.
PPF Group Principles
1
PPF Group Profile
3
Introduction
8
Selected Facts and Figures
11
Organization and Ownership Structure of the Group
14
PPF Group in 2006
16
Selected Facts of 2007 in the Group
24
History of the Group
25
Key Group Personnel
29
Restructured PPF Group
32
PPF Group N.V.
33
Insurance Holding
36
Consumer Finance Holding
46
PPF banka a.s.
58
PPF a.s.
59
Human Resources Strategy
60
PPF Group and Philanthropy
61
Financial Part
66
Contacts
112
Petr Kellner
Founder and majority shareholder of PPF Group N.V.
Born in 1964; a graduate of the University of Economics, Prague, Faculty of Industrial Economics in 1986. Petr Kellner is one of the founders of PPF Group and became Chairman of the Board of Directors and CEO of PPF investiční společnost, a.s. in 1991. From January 1998 to March 2007, he was Chairman of the Board of Directors of PPF a.s. Since April 2007, he has become a member of the Board of Directors of Assicurazioni Generali S.p.A. He owns a majority stake in PPF Group and manages its strategic development and planning.
introduction
Dear friends,
I am pleased that similarly to the previous years I can state that PPF Group continues on its path of dy-namic international expansion and further improves its financial performance in a significant manner. Operations of the group are now clearly divided into two essential areas. The first pillar remains the in-surance industry with our key company – Česká pojišťovna. We are now vesting the company into a joint venture with Generali Group, the third largest European insurer, in order to become the leading provider of insurance services in the region of Central and Eastern Europe.
The second, dynamically developing branch focuses on consumer financing and consists of companies of Home Credit Group. In this field, we have recently announced our intention to create a universal banking group in Russia by means of strategic partnership with Nomos Bank, one of the most active and the most rapidly developing Russian banks.
However, that is not how far our plans go. We are still searching for other interesting investment oppor-tunities suitable for development of our business, whether within the group or in cooperation with our current and prospective strategic partners. I deem it important to see that we are a transparent financial group, comprehensive to investors, attractive to renowned partners, focused on provision of first-class products and services and financially strong for expansion to other markets.
On the other hand, we shall not remain satisfied. As things happen in the course of life, we will face suc-cess as well as situations that will develop independent on our will, wishes or efforts, and usually contrary to such. That is the point where we have to show our strengths, not resigning, learning from the situation and taking changes as opportunities. We must believe that though nothing will be as it used to be, nothing prevents us from improving it. We must believe that together we will find new opportunities to strengthen our position, to develop our company in a dynamic way. I am pleased that we have an experienced team of international professionals who can face such challenges with success.
Dear business partners and colleagues, thank you very much for your support. I am looking forward to our future collaboration that will bring us satisfaction and even more success.
Petr Kellner
11
C O M PA N Y D ESC R I P T I O N VA LU E
PPF Group Total volume of managed assets EUR 8,177 million
PPF Group N.V. assets EUR 1,126 million
profit after taxation EUR 402 million
Česká pojišťovna a.s. assets EUR 4,424 million
profit after taxation EUR 293 million
Česká poisťovňa – Slovensko, a.s. assets EUR 225 million
profit after taxation EUR 2 million
Cheskaya strahovaya kompaniya o.o.o. assets EUR 27 million
profit after taxation EUR 4 million
Česká pojišťovna ZDRAVÍ a.s. assets EUR 15 million
profit after taxation EUR 2 million
ČP DIRECT, a.s. assets EUR 3 million
profit after taxation EUR 0.2 million
ČP INVEST investiční společnost, a.s. assets EUR 6 million
profit after taxation EUR 0.2 million
Penzijní fond České pojišťovny, a.s. assets EUR 1,181 million
profit after taxation EUR 36 million
CP REINSURANCE COMPANY Ltd. assets EUR 200 million
profit after taxation EUR 48 million
CP Strategic Investments B.V. assets EUR 44 million
profit after taxation EUR 0.5 million
PPF Asset Management a.s. assets EUR 7 million
profit after taxation EUR 2 million
Home Credit a.s. assets EUR 389 million
profit after taxation EUR 17 million
Home Credit International a.s. assets EUR 12 million
profit after taxation EUR 0.4 million
Home Credit Slovakia, a.s. assets EUR 147 million
profit after taxation EUR 2 million
Home Credit & Finance Bank Llc. assets EUR 1,309 million
profit after taxation EUR 20 million
Home Credit Kazakhstan assets EUR 93 million
profit after taxation EUR (9 million)
PPF a.s. assets EUR 33 million
profit after taxation EUR 2 million
PPF banka a.s. assets EUR 891 million
profit after taxation EUR 10 million
selected facts and figures
AS AT 31 DECEMBER 2006organization and ownership
structure of the group
14
Owners:
Petr Kellner 94.36% Jiří Šmejc 5%
Ladislav Bartoníček 0.64%
Organization chart as of August 2007. The structure includes the most important companies of PPF Group.
HC Holding a.s. / CZ / Home Credit Grand Holding a.s. / CZ / PPF banka a.s. / CZ / ČP INVEST investiční společnost, a.s. / CZ / PPF Asset Management a.s. / CZ / Česká pojišťovna Kazakhstan / KAZ /
Home Credit a.s. / CZ / Home Credit Slovakia, a.s. / SK / Home Credit International a.s. / CZ / Home Credit Finance Ltd. / UA / Home Credit Kazakhstan JSC / KAZ / Home Credit B.V. / NL / Home Credit & Finance Bank Llc. / RUS / PPF Group N.V. / NL /
15
Česká pojišťovna ZDRAVÍ a.s. / CZ / Cheshskaya strahovaya kompaniya / RU / Česká pojišťovna a.s. / CZ / Penzijní fond České pojišťovny, a.s. / CZ / CP REINSURANCE COMPANY Ltd. / CYP / ČP DIRECT, a.s. / CZ / Česká poisťovňa – Slovensko, a.s. / SK / Cheshskaya strahovaya kompaniya Ukraine / UA / CJSC Home Credit Bank / UA / OJSC Lorobank / BY / PPF a.s. / CZ / CZI Holdings N.V. / NL / CP Strategic Investments B.V. / NL / PPF Art a.s. / CZ /16
PPF Group in 2006
january
• Evžen Hart joins the management of PPF a.s., being responsible for human resources and public rela-tions
• Standard & Poor’s has confirmed the credit and financial strength rating of Česká pojišťovna a.s. at the level of BBB with a stable outlook
february
• Česká poisťovňa – Slovensko, a.s., launches a new product for children and youth – capital life insu-rance SLNIEČKO
march
• Moody’s has increased the rating outlook for the Baa3 financial strength rating of Česká pojišťovna a.s. from stable to positive
• Česká pojišťovna a.s. has the best financial advertising of the year 2005. The competition is announced by the financial information site mesec.cz.
april
• ČP INVEST offers a unique open mutual fund in the Czech Republic – the Golden Fund
• Česká pojišťovna a.s. ranked first among insurers in the CZECH TOP 100 and was announced the fifth most admired Czech company in total
may
• Consumers have activated half a million of purchase credit cards issued by Home Credit a.s.
• DYNAMIK insurance from Česká pojišťovna a.s. became the Most Popular Product of the Year in the Zlatá koruna 2006 competition
• Penzijní fond České pojišťovny, a.s. has won the third place in the Zlatá koruna competition in the category of Supplementary pension schemes. The ranking is given according to voting of the Financial Academy.
17
june
• PPF Asset Management a.s. became member of the Czech Fund and Asset Management Association • Home Credit B.V. issues bonds in the volume of CZK 3 billion
• Penzijní fond České pojišťovny, a.s. has won the first place in the category of pension funds in the CZECH TOP 100 in the year 2006; the ranking is based on economic data of the past period • Penzijní fond České pojišťovny, a.s., was announced the Pension Fund of the Year in the MasterCard
Bank of the Year 2006 competition, thus confirming its win in the previous year; the ranking is decided on by a professional panel
• Česká pojišťovna a.s. has won the category of insurance companies in the competition for the Best Bank of the Year 2006, organized by Osobní finance magazine in cooperation with the internet daily FinExpert.cz
• Penzijní fond České pojišťovny, a.s. has ranked second in the category of Pension Funds in the Best Bank of the Year survey organized by Osobní finance; the voting is a wide public poll
july
• PPF Group has successfully separated the Home Credit activities from Česká pojišťovna a.s. • Home Credit a.s. has entered the Ukrainian market
• Standard & Poor’s has increased the international rating of Home Credit & Finance Bank from B- to B with a stable outlook
• Kombi casualty insurance from Česká poisťovňa – Slovensko, a.s. has ranked third in the Zlatá minca 2006 competition
• Česká poisťovňa – Slovensko, a.s. has won the second place in the categories of Property Insurance and Real Estate Insurance and the third in the category of Motor Liability Insurance in the competition Zlatá minca 2006
• Home Credit Slovakia, a.s. has won the financial products competition Zlatá minca 2006 in the ca-tegory of Purchases by Installments with its Home Credit Consumer Loan product
september
• Česká pojišťovna a.s. has sold its stake in the company Modrá pyramida stavební spořitelna, a.s. • Home Credit a.s. has issued local bonds with variable interest yield in total volume of CZK 3 billion
Jiří Šmejc
Shareholder of PPF Group N.V.
Born in 1971; a graduate of the Charles University, Prague, Faculty of Mathematics and Physics, where he specialized in mathematical economics. In 1992, he went into business and in 1993 he became the Executive Officer and Director of PUPP Consulting s.r.o. In 1995, he served as Sales Director at Middle Europe Finance s.r.o., which was a securities trader with a focus on acquisitions. Until 2004, he was the 34% owner of TV NOVA Group. He joined PPF Group in 2004 and became shareholder of the group in 2005. He is in charge of the group’s activities in Russia.
20
october
• Alexander Labak came to manage further expansion of Home Credit Group as its CEO and executive partner
• Lard Friese is the new CEO of Česká pojišťovna a.s.
• PPF Group has completed the sale of shares of eBanka, a.s. to Raiffeisen International Bank-Holding AG • Home Credit a.s. has launched a new credit card – Wallet full of money
• Home Credit & Finance Bank has successfully sold its local issue of bonds totalling RUB 3 billion • Česká pojišťovna a.s. has won the second place in Top Corporate Philanthropist 2006
• Česká pojišťovna a.s. became Insurer of the Year 2006 in the prestigious MasterCard Bank of the Year competition. Česká pojišťovna has won this category of all annual Bank of the Year competitions in the history.
november
• Home Credit Slovakia, a.s. has launched a new credit card to the Slovak consumer finance market • The Annual Report of Česká pojišťovna a.s. ranked second among financial institutions in the Best
Annual Reports 2005 competition
• Česká poisťovňa – Slovensko, a.s. and its Dynamik variable capital life insurance has won the second place of the Best Product 2006 competition
• Česká pojišťovna a.s. has joined the European Safe Road Traffic Charter in Brussels and thus became the only Czech financial institution supporting this initiative of the European Commission with its projects. The aim of the initiative is to lower the number of traffic accident casualties to half by the year 2010.
21
december
• Home Credit Group has completed acquisitions of Bank AGROBANK and PrivatKredit in Ukraine • Česká pojišťovna was awarded the Most Popular Insurer in the Zlatý měšec competition
• Home Credit & Finance Bank enters the market of mortgage loans in Russia • Home Credit has acquired Lorobank in Belarus
• Home Credit & Finance Bank has organized the first public tender for sale of unpaid loans in Russia • The distribution network of Home Credit & Finance Bank in Russia exceeds 23,500 points of sale and
the client database includes more than 11 million people
• Česká pojišťovna a.s. has won again the survey Zlatý měšec organized by the financial information site mesec.cz among insurance companies and ranked second in the category of the most popular financial institution of the year 2006
• Česká pojišťovna a.s. has been granted the Internet Effectiveness Award 2006 in the category of Banking and Finance for its on-line insurance and video guide
• Penzijní fond České pojišťovny, a.s. has won the category of the Most Popular Pension Fund in the survey of Zlatý měšec according to a public poll
• ČP INVEST was announced the second Most Popular Investment Company of 2006 by the financial information site mesec.cz
• In the Zlatý měšec 2006 competition, Home Credit a.s. has ranked second in the category of the Most Popular Company offering Purchase by Installments 2006
• Home Credit & Finance Bank was awarded Best Securitization of Emerging Markets Assets from the magazine Structured Finance International, for securitization of POS loans
Ladislav Bartoníček
Shareholder of PPF Group N.V.
Born in 1964; a graduate of the Czech Technical University in Prague, Faculty of Electrical Engineering. He has joined PPF investiční společnost a.s. in 1991 as Executive Director. Mr. Bartoníček was awarded an MBA by the Rochester Institute of Technology, New York, in 1993. From 1996 until September 2006, Bartoníček served as Chief Executive Officer of Česká pojišťovna a.s. He has been Chairman of the Board of Česká pojišťovna a.s. since June 2000. Mr. Bartoníček has become a shareholder of the group since 2007. He is in charge of the group’s insurance operations.
24
selected facts of 2007 in the group
may 2007
PPF Group N.V. and shareholders of Nomos Bank together plan to create one of the largest universal banking groups in Russia. Two companies, Home Credit & Finance Bank, member of Home Credit Group and Nomos Bank, will be vested into a newly established holding owned by PPF Group N.V. and share-holders of Nomos Bank. The two banks will continue their independent operations and will preserve their current trademarks. Shares in the newly established holding will be determined based on agreed principles and based on audited results of the two banks as at the end of the first six months of 2007. The final agree-ment on strategic partnership is expected to be concluded in the last quarter of 2007. The transaction is subject to approval from relevant regulatory and anti-monopoly authorities.
july 2007
The groups of PPF and Generali have entered into a joint-venture agreement in order to become the lead-ing provider of insurance services in the region of Central and Eastern Europe. Generali (51%) and PPF (49%) will be owners of the new joint venture (Generali PPF Holding B.V.). According to preliminary results of the year 2006, gross annual written premiums will exceed EUR 2.6 billion with EUR 2.3 bil-lion Embedded Value and the number of clients will exceed 9 milbil-lion in 12 countries. The new company Generali PPF Holding B.V. will integrate all assets of insurance activities of Generali and PPF in the region of Central and Eastern Europe and will allow the merged group to encompass the following twelve coun-tries: Czech Republic, Slovakia, Poland, Hungary, Romania, Bulgaria, Ukraine, Russia, Serbia, Slovenia, Croatia and Kazakhstan. The agreement will accelerate strategic expansion of the two groups in the subject region, which is one of the most attractive ones in the world as per insurance services and will cre-ate a strong platform for further development of opportunities in this region and neighboring countries. Generali PPF Holding B.V. will combine key insurance capacities and financial strength of Generali with unique knowledge of local environments and entrepreneurial approach of PPF. The transaction is expected to be settled during the second half of 2007 and is subject to approval from relevant regulatory and anti-monopoly authorities.
august 2007
Tomáš Spurný became member of the top management of PPF Group, as he was appointed Chairman of the Board of Directors of PPF a.s.
25
1991
• PPF Group has started its operations in the field of collective investments. The main scope of business included establishment and administration of funds for collective investments at the time of the coupon privatization.
• PPF investiční společnost, a.s. was established
1993
• In May, investment funds took over shares of enterprises of face value of CZK 4.9 billion. According to the number of acquired investment points, PPF Group ranked sixth among Czech investment companies.
1994
• PPF Group starts operations in the field of trading in securities and asset management
• PPF burzovní společnost a.s. became member of the Prague Stock Exchange and special client of RM-Systém
1995
• Two special companies were established – PPF majetková a.s. and PPF Capital Management a.s., by which the group has extended its activities to the area of real property and strategic investments
1996
• PPF Group has acquired an important stake in Česká pojišťovna a.s. and initiated the process of internal restructuring of Česká pojišťovna a.s. and started participating actively in management of the insurance company
1997
• Change of strategy of PPF Group – from investments in the industry to business and strategic invest-ments in the field of financial services to retail clients
• Home Credit a.s. focusing on purchases by installments was established
1998
• PPF a.s. started its operations
1999
• PPF Group enters the Slovak market – Home Credit Slovensko, a.s. • Launched acquisition of EXPANDIA BANKA, a.s. (later eBanka, a.s.)
2000
• PPF Group becomes the majority shareholder of Česká pojišťovna a.s.
Aleš Minx
Chairman of the Board of PPF Group N.V.
Aleš Minx was born in 1964. He graduated from the Industrial Economy Faculty of the University of Economics, Prague. Between 1987 and 1992, he worked as head of the financial department at PAL a.s. Mr. Minx has joined PPF in 1992 and has held the position of CFO until June 2001. From July 2001 to May 2005, he served as the executive director of PPF a.s. He has been Vice-Chairman of the Supervisory Board of PPF a.s. until March 2007, now he is Chairman of the Board of Directors of PPF Group N.V.
28
2001
• Completion of the privatization process of Česká pojišťovna a.s.
2002
• PPF Group has launched its operations in Russia with its companies Česká pojišťovna a.s. and Home Credit a.s.
• By purchasing a stake in První městská banka,a.s. (approximately 80%), operations of PPF Group were extended to the municipal sector
• PPF Group enters TV NOVA by acquiring a stake in CET 21 spol. s r.o.
2003
• The companies Penzijní fond ČP and ČP Penzijní fond (former Commercial Union PF) are merged; the successor company is Penzijní fond České pojišťovny, a.s.
• PPF a.s. acquires a 93.2% stake in the service company ČNTS from CME
2004
• PPF Group has opened its office branch in the Chinese capital city Beijing • První městská banka,a.s. was renamed to PPF banka a.s.
• PPF Group sells its majority stake in TV NOVA and becomes the second largest shareholder of CME
2005
• PPF Asset Management a.s. became the largest asset management company in the Czech Republic • Home Credit Group takes leading positions in all key markets of its operations
• PPF Group has entered into an agreement on strategic cooperation with the company Changhong Electric Co. Ltd. from the Sichuan province of China
• PPF Group has opened its office branch in Vietnam
• Home Credit Group has entered the market of purchases by installments in Kazakhstan
2006
• PPF Group has successfully separated the Home Credit activities from Česká pojišťovna a.s.
• PPF Group has completed the sale of shares of eBanka, a.s. to Raiffeisen International Bank-Holding AG • Home Credit Group has completed acquisitions of Bank AGROBANK and PrivatKredit in Ukraine • Home Credit has acquired Lorobank in Belarus
2007
• PPF Group N.V. and shareholders of Russia’s Nomos Bank announced their plan to create one of the largest universal banking groups in Russia in the form of a strategic partnership
• PPF Group and Generali have entered into an agreement on a joint venture in order to become the leading provider of insurance services in Central and Eastern Europe
29
Petr KellnerFounder and majority shareholder of PPF Group N.V.
Jiří Šmejc
Shareholder of PPF Group N.V. in charge of the group’s operations in Russia
Ladislav Bartoníček
Shareholder of PPF Group N.V. in charge of the group’s insurance activities
Aleš Minx
Chairman of the Board of Directors of PPF Group N.V.
Alexander Labak
Chairman of the Board of Directors of Home Credit B.V.
Ladislav Chvátal
Member of the Board of Directors of Home Credit B.V.
Tomáš Spurný
Chairman of the Board of Directors of PPF a.s.
Kamil Ziegler
Vice-chairman of the Board of Directors of PPF a.s.
Evžen Hart
Member of the Board of Directors of PPF a.s.
Milan Maděryč
Chairman of the Supervisory Board of Česká pojišťovna a.s.
32
restructured PPF Group
The process of the group’s restructuring was initiated in summer 2005 by deciding on establishment and further strategic development of two business areas – insurance and supplementary pension schemes on one side and consumer financing on the other.
Ownership interests within Česká pojišťovna a.s. were spin-off in the course of 2006, establishing the company Home Credit Grand Holding a.s. for Home Credit Group. This action reflected the aims of reorganization of the entire PPF Group, including definition of two significant and separate business branches. Apart from business, organization and administrative advantages, the spin-off has brought a positive effect of limiting the specific risk connected with the branches in homogenous units represented by the separate holdings. Such units, as well as the companies can thus apply for other funding resources in international financial markets in an easier way and under favourable conditions.
At the end of 2006, internal restructuring of the group has resulted in establishment of a purely insurance holding – CZI Holdings N.V. – by transferring the share in Česká pojišťovna a.s. from PPF Group N.V. to CZI Holdings N.V. (CZIH), directly and entirely owned by PPF Group N.V. Therefore, CZIH became the sole shareholder of Česká pojišťovna a.s., completing the process of creation of the holding structure under CZIH, covering all insurance-related activities of PPF. The newly established insurance holding is the subject-matter of the agreement on a joint venture with Generali Group.
Overall restructuring of the group, strengthening holding management of its companies was thus completed. The final separation of companies in two branches is also a more suitable structure for managing international expansions. PPF Group N.V. currently takes the key role within PPF Group, being the basic pillar of the entire entity.
Furthermore, the current structure of the group complies with requirements of the new Act on financial con-glomerates in the Czech Republic to a greater extent. The above mentioned changes will support the plan of building a strong and flexible financial group with international operations, based on positive results and trust. A proof of the fact the restructuring process has met its goals can be considered the conclusion of agreements on strategic partnerships with important financial corporations – the international Generali Group or Nomos Bank in Russia.
33
PPF Group N.V.
PPF Group N.V. is a Netherlands-based holding company and the sole direct shareholder of CZI Holdings N.V. (the holding company for all insurance business-related companies including Česká pojišťovna a.s.) and the owner of a 100% stake in Home Credit B.V. (the holding company for all consumer credit compa-nies within Home Credit Group), provided that by the half of 2007, a 40.28% share in Home Credit B.V. was held directly and the remaining part indirectly via the subsidiaries of PPF Group N.V. The company is also the majority owner of PPF banka a.s. and the majority shareholder of PPF a.s., the principal advisory company serving the entire PPF Group.
BOARD OF DIRECTORS
Aleš Minx – chairman
Wilhelmus Jakobus Meyberg – member Rudolf Bosveld – member
Alexander Labak
Chairman of the Board of Home Credit B.V.
Born in 1962. He is a Fulbright Scholar holding an MBA from the Wharton Business School and a PhD from the Vienna University of Economics & Business Administration. Before joining Home Credit Group in 2006, Mr. Labak held executive positions in leading financial services companies such as President, Mastercard Europe, or the position of Chief Marketing Officer in Deutsche Bank. Further he built up a distinct consumer-focused track record working for Johnson & Johnson and Henkel. Throughout his career Mr. Labak had European and global business responsibilities complemented by direct operating market experience in the United States, Canada, Germany, Italy, Belgium and Austria. He is currently the Chairman of the Board of Directors of Home Credit B.V.
36
Profile
Česká pojišťovna Group is an insurance group with years of tradition that provides life and non-life insur-ance products for retail customers as well as supplementary pension schemes, and insurinsur-ance solutions for corporate clients in Central and Eastern Europe (CEE). Its core markets are the Czech Republic, where the company is the largest insurer, as well as Slovakia where Česká pojišťovna is one of the top three insurers in the country. In 2002, Česká pojišťovna has expanded to Russia and consequently to Ukraine and Kazakhstan in the course of 2006. The principal goal of Česká pojišťovna is to provide best-in-class services to its clients and to strengthen its position of the leading insurance group in CEE.
CZI Holdings N.V.
CZI Holdings N.V. is a Netherlands-based holding company that fully owns the companies Česká pojišťovna a.s. and PPF Asset Management a.s.
MANAGEMENT
Brenda Gierman-Beijlsmit – director Wilhelmus Jacobus Meyberg – director
Česká pojišťovna a.s.
Česká pojišťovna (ČP) is an all-purpose insurer. It offers both insurance and reinsurance services. With approximately 13 million insurance policies, it is the largest player in the Czech insurance market. The company is continuing all activities related to its participations in other legal entities. It is using synergy ef-fects originating from cooperation between the ČP companies and PPF Group. It expands in both Central and Eastern Europe and Kazakhstan.
BOARD OF DIRECTORS
Ladislav Bartoníček – chairman Lard Friese – vice-chairman Marcel Dostal – member Jan Ježdík – member www.cpoj.cz
insurance holding
37
Česká poisťovňa – Slovensko, a.s.
Česká poisťovňa – Slovensko, a.s. has been in the Slovak insurance market for 14 years. It offers a wide portfolio of products and services in the area of life and non-life insurance. It is the third largest all-purpose insurer in Slovakia and offers its products and services in 50 cities both in its own retail network and in cooperation with insurance brokers.
BOARD OF DIRECTORS
Jan Ježdík – chairman
Antonín Nekvinda – vice-chairman Lenka Pěnčíková – member Stanislav Polešovský – member www.cps.sk
Cheshskaya strahovaya kompaniya o.o.o. (Russia)
The company has been in the Russian insurance market since 2003. In accordance with the new Russian legislation, it has gained a new license in January 2006 as a life insurance provider with a wide range of life insurance products. It also offers insurance for Home Credit & Finance Bank‘s consumer loans.
BOARD OF DIRECTORS
Michal Hauser – chairman Ivo Foltýn – member Jiří Rudolf – member www.czins.ru
Cheshskaya strahovaya kompaniya Ukraine
The company is a life insurance company focusing on sale of traditional endowment insurance and insur-ance products offered in cooperation with the consumer crediting company Home Credit.
MANAGEMENT
Vladislav Minář – general director
Václav Audes – chairman of the supervisory board Jaromír Kohout – member of the supervisory board Ivo Foltýn – member of the supervisory board
38
Česká pojišťovna ZDRAVÍ a.s.
Česká pojišťovna ZDRAVÍ a.s. specializes in commercial private health insurance and has grown into the biggest provider in the Czech Republic. It was founded in 1993 by Česká pojišťovna a.s. and Vereinte Krankenversicherung. In 1997, Česká pojišťovna a.s. purchased all VK shares and became the sole share-holder in Česká pojišťovna ZDRAVÍ a.s.
BOARD OF DIRECTORS
Přemysl Gistr – chairman Ivana Majerechová – member Jaromír Kohout – member www.zdravi.cz
ČP DIRECT, a.s.
ČP DIRECT, a.s. is focusing on closer cooperation with Česká pojišťovna a.s. in the areas of process optimiz-ing and management, consultoptimiz-ing, and actoptimiz-ing as an insurance intermediary. In early 2005, ČP DIRECT, a.s. was recorded in the Register of Insurance Intermediaries and Independent Loss Adjusters under number as an insurance agent.
BOARD OF DIRECTORS
Jiří Jirsa – chairman Miroslav Řezník – member Petr Kůt – member www.cpdirect.cz
ČP INVEST investiční společnost, a.s. (ČP INVEST)
ČP INVEST is one of the largest investment companies in the local market with CZK 4.7 billion in net assets under management. Net mutual fund sales in 2006 totalled CZK 999 million. The sole shareholder of ČP INVEST is Česká pojišťovna a.s. In 2006, ČP INVEST has opened three new mutual funds, merged two bond funds, extended the offer of products with the Regular Investment Program or Stock Investment Program, and acquired more distribution channels for the sale of its products.
BOARD OF DIRECTORS
Robert Hlava – member Jana Doucková – member Pavel Veselý – member www.cp-invest.cz
39
Penzijní fond České pojišťovny, a.s.
The largest pension fund in the Czech Republic is using the potential offered by the size of its client base, the volume of assets it manages and the wide range of distribution channels. The main reasons for high demand for private supplementary pension schemes include return on savings supported by state subsidies, growing employer participation and increasing awareness of the impact of lacking pension reforms.
BOARD OF DIRECTORS
Ivo Foltýn – chairman
Tomáš Matoušek – vice-chairman Václav Šrajer – member
Petr Kopecký – member Tomáš Machanec – member www.pfcp.cz
CP REINSURANCE COMPANY Ltd.
CP REINSURANCE COMPANY Ltd. with its registered office in Nicosia, Cyprus, is a 100% subsidiary of Česká pojišťovna, a.s. It was established in 2004 and has been in operation since the second half of that year. The objective for which the company was established is to gradually unify the reinsurance cover of insurance companies within Česká pojišťovna Group, bringing them under one roof, and to provide reinsurance cover to companies outside the group as well. The company was established in accordance with the laws of Cyprus and was granted a license for provision of reinsurance services from the local supervisory authorities.
MANAGEMENT
Marcel Dostal – director Kamil Ziegler – director Marios Antoniadis – director Andreas Philippou – director Costas Christoforou – director
Ladislav Chvátal
Member of the Board of Home Credit B.V.
Born in 1963; a graduate of the University of Economics, Prague, specialized in Automated
management systems in economy. He has been with PPF Group since 1994. He has held a number of key managerial positions within PPF Group and later Home Credit Group. On June 1, 2005, Mr. Chvátal became PPF Group’s Executive Director for Retail Banking and Consumer Finance. In January 2007, he was appointed Member of the Board of Directors of Home Credit B.V.
42
CP Strategic Investments B.V.
CP Strategic Investments B.V. is a sub-holding entity for foreign operations of Česká pojišťovna Group. In 2006, it has sold its stake in the company První Callin agentura a.s., which focused on insurance brokerage, to Česká pojišťovna a.s. CP Strategic Investments B.V. has also acquired a direct shareholding in Česká pojišťovna Ukraine from PPF Group N.V. The company also owns a 100% stake in Česká poisťovňa – Slovensko, a.s. and an indirect share in ČP Services, s.r.o., a 100% subsidiary of Česká poisťovňa – Slovensko, a.s.
MANAGEMENT
Aleš Minx – director
Jacobus Wilhelmus Meyberg – director
PPF Asset Management a.s.
PPF Asset Management a.s. renders top-class professional services in the field of management of assets of institutional clients and in investment consulting. The company is the only asset manager within PPF Group and manages primarily the portfolios of institutional investors of the group (life and non-life in-surance companies, pension funds, reinin-surance companies, etc.). Based on special contracts, it allows its clients to invest in a wide range of investment instruments, from money market instruments, bonds and equity to various structured and tailored products suiting the client’s return and risk profile. The company is one of the largest and the most successful asset managers in the Czech Republic.
BOARD OF DIRECTORS
Kateřina Jirásková – member Petr Dobiáš – member
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Assumed structure of insurance business after establishment
of Generali PPF Holding B.V.
PPF Group N.V. / NL / 49% Generali PPF Holding B.V. / NL / Generali CEE insurance operations Assicurazioni Generali S.p.A. / ITA / 51% PPF CEE insurance operations46
consumer finance holding
AS AT 31 AUGUST 2007
Profile
Home Credit Group is the leading provider of consumer financing in the markets of Central and Eastern Europe and Middle Asia. In 2006, Home Credit Group has granted loans totalling approximately USD 2.7 million. Home Credit maintains its leading position in consumer credit markets in the Czech Republic (operations started in 1997), Slovakia (1999), Russian Federation (2002) and Kazakhstan (2005). Home Credit Group has entered the Ukrainian and Belarusian markets in 2006.
As per today, companies of Home Credit Group offer three basic types of products: special-purpose loans (point-of-sale loans), revolving credits (with credit cards) and cash loans.
Home Credit Group continuously seeks opportunities for extending its offer of products in the consumer finance market and puts them into practice, if efficient. This business model enables satisfaction of the clients’ financing needs in a flexible and reliable manner free of unnecessary administrative barriers. The group can also provide its partners with financing of the sold goods and services under reliable and timely terms and conditions.
Home Credit Group selects markets for its further expansion according to these characteristics: moderate competition, outlook for a significant future growth and large markets allowing saving cost on economies of scale. Leading positions in the markets of Home Credit’s operations were achieved due to well-planned strategy based on the advantage of early entry to the market, throughful analysis of the local environment and easily transferable business model adjusted to the local specifics. Companies of the Home Credit Group support the growth of local economies and facilitate introduction of the best practice in consumer financing.
Home Credit Group continuously evaluates opportunities flowing from changing demand of its client base and capacities to extend the offer of products in the markets where the group is present. Furthermore, it extends the geographical coverage in markets where the group’s penetration is lower.
Home Credit will always monitor development in its target markets offering potential for successful entry of the group. Such markets also include China and Vietnam.
47
Home Credit B.V.
Home Credit B.V. is the Netherlands-based holding company of Home Credit Group, which consists of companies active in the consumer finance market in the Czech Republic, Slovakia, Russia and Kazakhstan. Home Credit Group has entered the Ukrainian and Belarusian markets in 2006.
BOARD OF DIRECTORS
Alexander Labak – chairman Ladislav Chvátal – member Declan McSweeny – member www.homecredit.net
Home Credit a.s.
Home Credit a.s. has been active in the Czech consumer financing market since 1997. Thanks to its diver-sified distribution channels network, segmented product portfolio and active approach to its client base, it has become one of the market’s leaders and continues to record a stable growth as well as profits. By the end of 2006, the company’s market share was 24.9%.
BOARD OF DIRECTORS
Erich Čomor – chairman Ladislav Chvátal – vice-chairman Martin Vetýška – member Luboš Berkovec – member
Tomáš Spurný
Chairman of the Board of PPF a.s.
Born in 1965; a graduate of Stern School of Business, part of the New York University. He has been awarded MBA in finance from Columbia University in New York. His career started in 1994 with McKinsey & Company, where he stayed at various positions until 1999. Later he became CEO and Chairman of the Board of CCS Česká společnost pro platební karty. For other two years he has been member of the Board of Komerční banka. From 2002 until 2007, he worked at Všeobecná úverová banka as Chairman of the Board and CEO. Tomáš Spurný has become Chairman of the Board of PPF a.s. since August 2007.
50
Home Credit International a.s.
Home Credit International a.s. is a consulting and servicing company focused on members of Home Credit Group. Home Credit International a.s. is also responsible for development and maintenance of IT systems supporting daily operations of members of Home Credit Group.
BOARD OF DIRECTORS
Petr Janák – chairman Pavel Janský – member Pavel Pfauser – member www.homecredit.net
Home Credit Slovakia, a.s.
In 2006, Home Credit Slovakia a.s. completed its first seven years in Slovakia. During this time, it has become one of the leading consumer finance providers among non-banking institutions in the Slovak mar-ket. As a part of its sales activities development program, the company has concentrated on analyzing the possibilities for further exploitation of its client base using a more detailed product differentiation. This resulted in an intensive focus on HCS‘s communication with individual customer segments.
BOARD OF DIRECTORS
Erich Čomor – chairman Luboš Berkovec – member Martin Vetýška – member
51
Home Credit & Finance Bank Llc.
Home Credit & Finance Bank (HCFB) has been active in the Russian consumer financing market since 2002. The bank is the second largest provider of special-purpose POS loans and revolving credits granted with credit cards in the Russian Federation. At the end of 2006, HCFB‘s share in the Russian POS loans market was 22% and 8% in the field of revolving credits granted with plastic credit cards. In the course of 2006, the bank has launched active offering of cash loans. At the end of 2006, HCFB offered its products at nearly 23,000 retail locations; the bank‘s regional network consisted of 98 regional branches throughout the Russian Federation. In addition, the bank was also using over 200 branches of the Russian Federal Post and has established relations with more than 11 million clients.
BOARD OF DIRECTORS
Jiří Šmejc – chairman
Evgeniy Bernshtam – vice-chairman Stanislav Staněk – member
Igor Doležel – member Irina Kolikova – member
www.homecredit.ru, www.homecredit.net
Home Credit Kazakhstan JSC
Home Credit Kazakhstan launched its operations in the Republic of Kazakhstan in the middle of December 2005. Home Credit Kazakhstan is active in all major cities across Kazakhstan. These include the country’s most important cities such as Almaty and the country’s capital Astana, as well as other 15 large cities, from which Home Credit Kazakhstan covers all 14 Kazakhstan’s administrative regions. By the end of 2006, the company’s share in the POS loans market was 40%.
BOARD OF DIRECTORS
Murat Mentes – chairman Jiří Badr – member Martin Pakan – member Kateřina Behulová – member Milan Roušar – member Tomáš Kolek – member www.homecredit.net
Kamil Ziegler
Vice-chairman of the Board of PPF a.s.
Born in 1962; a graduate of the University of Economics Prague, Faculty of Commerce.
Mr. Ziegler is also a graduate of the Southern Methodist University, Dallas. He has served in a number of senior positions in the banking sector, from Executive Director and Finance Director of Komerční banka, a.s. and Deputy CEO and Member of the Board of Česká spořitelna, a.s. to CEO and Chairman of the Banking Council of Konsolidační banka Praha, s.p.ú. and Chairman of the Board and CEO of Raiffeisenbank a.s. In April 2004, he has joined PPF Group and since August 2007, he has become Vice-chairman of the Board of PPF a.s. He currently also holds the position of Vice-President of the CFO Club of the Czech Republic.
54
Home Credit Finance Ltd.
Home Credit Finance Ltd. (former PrivatKredit) is one of the Ukraine’s leading non-banking financial institutions focusing on consumer finance. Home Credit Finance manages an extensive network of over 1,000 points of sale throughout Ukraine. The combination of Home Credit Finance detailed knowledge of the local market acquired by merging its activities with Home Credit Bank and Home Credit Group’s international experience and financial resources creates an ideal platform for dynamic development of Home Credit Group’s activities in the Ukrainian market.
MANAGEMENT
Irina Valerievna Cebro – director Sergey Anatolievich Sinchenko – director www.homecredit.net
OJSC Lorobank
Lorobank is a small bank headquartered in Minsk, Belarus acquired by Home Credit Group at the end of 2006. The group seeks for opportunities in the local consumer finance market.
BOARD OF DIRECTORS
Algerdas Tabatadze – chairman Ihar Salauyou – vice-chairman Segrey Sergeyev – member www.homecredit.net
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CJSC Home Credit Bank
Home Credit Bank (former AGROBANK) is a universal bank headquartered in Dnipropetrovsk (Ukraine) providing its services to retail and corporate clients through a network of 22 branches in the following cities: Kyiv, Dnipropetrovsk, Kharkov, Donetsk, Zaporozhie, Krivoy Rog, Dnieprodzerzhinsk, Pavlograd, Nikopol, Kremenchug and Kirovograd.
BOARD OF DIRECTORS
Iryna Molchanova – in charge of chairperson’s duties and responsibilities Svetlana Babiy – member
Sergey Gulidov – member Iryna Semenenko – member Vladimír Chalupa – member www.homecredit.net
Evžen Hart
Member of the Board of PPF a.s.
Born in 1958; a graduate of the Academy of Performing Arts in Prague with a degree in production. He started working in the Kolín Regional Theater in 1982 and one year later joined the main news editorial staff of the then Czechoslovak Television. In 1992, he moved on to advertising joining the agency Young & Rubicam and working his way up from an account manager to the company’s Sales Director. His career next took him to BBK Advertising in 1993 where he served as the Sales Director and later became its CEO and partner. After Ogilvy acquired BBK in 2000, Mr. Hart was appointed the CEO of the group’s Czech branch. Mr. Hart has become Ogilvy group’s non-executive chairman since January 1, 2006 when he joined PPF Group. Since March 2007, he has become Member of the Board of PPF a.s.
58
PPF banka a.s.
PPF banka a.s. is an integral part of PPF Group. Over the years, PPF banka a.s. has profiled into a specia-lized bank providing financial, investment and consulting services to a limited number of clients demanding individual approach and products suiting needs of their business activities while preserving maximum ef-ficiency of rendered services. In accordance with its strategy, PPF banka a.s. primarily focuses on corporate finance and operations in global financial markets. PPF banka a.s. also serves as the central treasury bank of PPF Group. The principal clients of PPF banka a.s. include financial institutions, Czech-owned mid-sized and large enterprises and entities of the municipal sector.
BOARD OF DIRECTORS
Petr Milev – chairman Pavel Langr – vice-chairman Martina Kučerová – member www.ppfbanka.cz
59
PPF a.s. is the principal advisory company of PPF Group. Its aim is to render consulting to the holding company PPF Group N.V., as well as to the individual companies within PPF. In providing such services, PPF a.s. emphasizes maximal efficiency and synergy effects and employing the best knowledge and capa-bilities of top professionals.
BOARD OF DIRECTORS
Tomáš Spurný – chairman Kamil Ziegler – vice-chairman Evžen Hart – member Lubomír Král – member www.ppf.cz
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human resources strategy
PPF Group has two main objectives in its HR policies: to employ talented, motivated and loyal employees and to enable them to fully use their potential.
The HR strategy of PPF is closely linked to its business goals so that it responds to the changing market situation and taking advantage of all opportunities. Its basic elements include support for open commu-nication and corporate culture, careful hiring of talented recruits, continuous improvement of the quality of education and development, as well as project teams’ support. In the area of corporate culture, PPF is renowned for open and informal communication, flexibility, loyalty and friendly atmosphere.
PPF Group sees employee benefits and employee development plans as two key areas of its HR policies and is comparable to top international companies in this respect.
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PPF Group in the Czech Republic aims at being a traditional partner to extraordinary culture and charity projects. The group is active in the field of philantrophy and particularly in culture, where it supports im-portant projects, thus significantly contributing to development of the cultural life in the Czech Republic. However, PPF Group does not intend to be a passive partner and therefore it searches for projects on its own, as well as it offers ideas for their continuous development.
Help for Children
PIPANPPF Group has been supporting PIPAN pre-school for the hearing-impaired since 1998. The school uses both sign language and spoken/written Czech. The basic idea is to provide small children with heavy hear-ing defects with a chance of spontaneous psychological development ushear-ing both languages. PPF Group provides financial assistance for basic alterations, school equipment and school trips. As a socially respon-sible company, PPF Group wants to help those in the biggest need – children.
Investment in Education
OPEN GATE – BOARDING SCHOOL, OSMILETÉ GYMNÁZIUM V BABICÍCH, S.R.O.
Within the scope of activities focused on support for education, PPF Group decided to support the actions of the Educa Foundation and its project Open Gate – Boarding School at Babice (Open Gate). Open Gate is a private high school specializing in languages. The school uses its own teaching materials approved by the Ministry of Education, Youth and Sports of the Czech Republic. The curriculum includes intensive English lessons and five subjects are taught in English. At the end of the studies, students pass an international test of English, which will facilitate their admission to Czech and foreign universities. Apart from English, students can choose one of five other languages. The idea to build a boarding school for talented students and fund socially disadvantaged children through the Educa Foundation was proposed eight years ago by Renáta and Petr Kellner. The foundation provides up to 100% financial support to children talented for the studies, growing up in childcare homes, foster families or socially impaired families. The budget covers all tuition fees, boarding, accommodation, hobbies, school uniforms and partially transport. A subsidy from the foundation is conditioned by passing the admission exams and being admitted to the school.
Milan Maděryč
Chairman of the Supervisory Board of Česká pojišťovna a.s.
Born in 1955; a graduate of the SPŠ Brno and post-graduate studies at the Technical University of Brno. Starting in 1980, Mr. Maděryč was employed in the technical and investment development department of ZPS, a.s. Zlín; later he became head of the company’s Trading division. Mr. Maděryč has joined PPF Group in 1994. He was Member of the Board of Directors of PPF a.s. and since June 2007 he has become Chairman of the Supervisory Board of Česká pojišťovna a.s.
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PPF – active partner of the Czech culture
The connection with culture is based on the tradition of PPF Group, its position and history of activities in the Czech market. As an important partner of the Czech culture, PPF Group represents its corporate philosophy and own approach to the Czech society by means of the supported projects. The support is particularly active in the area of the Czech theatre and photography, to which the group invests tens of million CZK every year. However, the group does not only bring funds to the projects – it always acts as an initiative and long-term partner of the Czech culture, who develops the projects and attempts at buil-ding their long tradition.
SUMMER SHAKESPEARE FESTIVAL
For the eighth year, PPF Group is the general partner of the Summer Shakespeare Festival. This is an open-air theatre festival, taking place in the magical environment of the Highest Burgrave‘s House at the Prague Castle and newly on the grounds of the Liechtenstein Palace in Prague’s Lesser Town. The unique idea of untraditional interpretation of the famous playwright William Shakespeare‘s ageless works has met with a very positive response among the public. The open-air Shakespeare festival is now presented not only at the Prague Castle, but also in Brno and Bratislava. The festival of 2006 was held under the aegis of the First Lady of the Czech Republic, Livia Klausová.
MAXIMUM PHOTOGRAPHY
The summer cultural season of 2006 also provided the third annual MAXIMUM PHOTOGRAPHY origi-nal exhibition from PPF Group‘s collection of photography. The Southern Gardens of the Prague Castle have seen an exhibition of photographs that were part of the New York – Pompeii series by Jan Lukas, organized in cooperation with the Prague Castle Administration. The exhibition, containing 27 large for-mat black and white, as well as colour photographs, confronted the world of the disappeared Little Italy with the darkest corners of New York. The cycle was shown for the first time in the Czech Republic to this extent. In 2007, the Prague Castle hold already the third annual Maximum Photography, this time called Salome and introducing photographs from Ivan Pinkava.
65
JOSEF SUDEK’S STUDIOPPF Group often comes out with ideas for new events in the Czech culture. One of those was the refurbish-ment of Josef Sudek‘s studio at Újezd in Prague in 2000. The PPF Group became not only the organizer of the project, but also the investor of the studio‘s refurbishment into a gallery and its subsequent operation. Thanks to PPF Group, the dilapidated building which once housed the most famous Czech photographer’s studio became an important gallery with a firm place in Prague‘s cultural life. The gallery introduces pho-tographic work from Czech classics as well as contemporary photographers, foreign and new artists. The most important include Josef Sudek, František Drtikol, Emila Medková, Jan Lukas, Ivan Pinkava, Jaroslav Rössler or Gábina Fárová. PPF Group’s attention to Josef Sudek‘s studio is closely related to its own col-lection. PPF Group is building an art photography collection called Fotograf v zahradě (Photographer in the Garden), containing 20th century and contemporary Czech fine art photography.
JÁRA CIMRMAN THEATRE
The mystifications of the Jára Cimrman Theatre are a crown jewel of the Czech theatre scene. The works of Smoljak and Svěrák associated with this theatre have gained a loyal following during the 40 years of its history. In their new theatre at Žižkov, the Cimrman troupe stages their time-proven plays and relatively new ones as well. It is also thanks to the support from PPF that the theatre has held several premieres of new works from this original ensemble.
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PPF Group N.V.
Consolidated balance sheet
AS AT 31 D EC EM B ER (I N M CZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Intangible assets 7,987 5,772
Property, plant and equipment 7,232 6,516
Investment property 2,616 2,629
Financial assets available-for-sale 6,240 1,780
Financial assets held to maturity 2,030 3,092
Financial assets at fair value through profit and loss 103,823 100,381
Loans and receivables 79,165 90,050
Non current assets held for sale 215 –
Reinsurance assets 1,529 1,138
Deferred tax assets 1,179 805
Other assets 274 392
Prepayments and accrued income 1,273 1037
Cash and cash equivalents 11,275 10,250
Total assets 224,838 223,842
Issued capital 23 23
Share premium 18,024 18,024
Reserves 977 1,628
Retained earnings 14,846 4,558
Total equity attributable to equity holders of the Parent Company 33,870 24,233
Equity component of discretionary participation features (“DPF”) – 55
Minority interests 117 134
Total equity 33,987 24,422
Insurance liabilities 91,494 90,758
Financial liabilities for investment contracts with DPF 32,347 26,298
Subordinated liabilities – 632
Other liabilities evidenced by paper 26,259 30,679
Financial liabilities at fair value through profit and loss 1,169 852
Liabilities to banks 6,902 5,891
Liabilities to non-banks 18,517 26,598
Provisions 2,620 2,668
Payables 7,437 9,706
Deferred tax liabilities 2,367 1,836
Net assets attributable to unit-holders 193 2,058
Accruals and deferred income 1,546 1,444
Total liabilities 190,851 199,420
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Consolidated income statement
FO R T H E Y E A R EN D ED 31 D EC EM B ER (I N M CZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Insurance premium revenue 40,489 41,916
Insurance premium ceded to reinsurers (2,460) (2,603)
Net insurance premium revenue 38,029 39,313
Interest and similar income 16,587 14,233
Other income from financial assets 5,283 5,565
Income from investment property 242 197
Net fee and commission income, and income from service activities 823 2,242
Other income 5,894 6,157
Total revenue 66,858 67,707
Insurance claims and benefits incurred (24,571) (29,393)
Insurance claims and benefits recoverable from reinsurers 623 273
Net insurance claims and benefits (23,948) (29,120)
Investment contracts benefits (1,114) (1,128)
Interest and similar expenses (2,729) (2,732)
Other expenses from financial assets (5,186) (4,507)
Expenses from investment property (245) (627)
Acquisition costs and other operating expenses (14,009) (15,585)
Other expenses (5,441) (7,100)
Total expenses (52,672) (60,799)
Profit before tax 14,186 6,908
Income tax expense (3,214) (1,394)
Profit after tax 10,972 5,514
Change in net assets attributable to unit-holders (17) (78)
Net profit for the year 10,955 5,436
Attributable to:
Equity holders of the Parent 10,929 4,378
Equity component of DPF – 153
Minority interests 26 905
Net profit for the year 10,955 5,436
Weighted average number of shares 66,738 66,738
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CZI Holdings N.V.
Unconsolidated balance sheet
AS AT 31 D EC EM B ER (I N TCZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 Assets
Subsidiaries and associates 13,218,724
Other assets 1,801
Cash at banks 33,007
Total assets 13,253,532
Capital and reserves
Issued capital 2,749,833
Share premium 10,528,717
Retained earnings –
Profit/loss for the year (42,973)
Shareholder‘s equity 13,235,578
Liabilities –
Other current liabilities 17,954
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Unconsolidated income statement
FO R T H E Y E A R EN D ED 31 D EC EM B ER (I N TCZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 Operating income
Interest income 639
Operating expenses
General and administrative expenses (40,561)
Exchange result (3,051)
Profit/loss before taxation (42,973)
Corporate tax –
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Unconsolidated balance sheet
AS AT 31 D EC EM B ER (I N TCZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Assets
Intangible assets 1,436,102 1,425,055
Subsidiaries and associates 3,950,694 16,728,599
Property, plant and equipment 3,267,516 3,970,050
Investment property 2,911,611 3,230,699
Financial assets available for sale 5,174,571 1,779,769
Financial assets held to maturity 1,886,610 1,870,728
Financial assets at fair value through profit or loss 69,855,005 67,897,066
Loans and receivables 22,343,190 25,357,831
Non-current assets held for sale 214,964 –
Reinsurance assets 8,266,244 7,888,762
Deferred tax assets 351,735 427,040
Other assets 55,912 56,670
Prepayments and accrued income 751,926 676,888
Cash and cash equivalents 1,171,098 249,087
Total assets 121,637,178 131,558,244 Liabilities Issued capital 4,000,000 2,980,963 Reserves 3,874,961 4,094,378 Retained earnings 9,202,536 13,787,834 Total equity 17,077,497 20,863,175 Insurance liabilities 88,368,875 87,652,105
Financial liabilities for investment contracts with DPF 1,308,480 1,065,924
Subordinated liabilities – 2,500,000
Other liabilities evidenced by paper – 4,068,190
Financial liabilities at fair value through profit or loss 392,236 511,817
Liabilities to banks 277,129 264,910
Provisions 2,292,848 2,275,839
Payables 9,297,336 9,971,765
Deferred tax liabilities 1,063,158 1,030,739
Other liabilities 46,971 38,635
Accruals and deferred income 1,512,648 1,315,145
Total liabilities 104,559,681 110,695,069
Total equity and liabilities 121,637,178 131,558,244
73
Unconsolidated income statement
FO R T H E Y E A R EN D ED 31 D EC EM B ER (I N TCZK ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Insurance premium revenue 37,836,087 39,967,689
Insurance premium ceded to reinsurers (11,056,134) (12,422,952)
Net insurance premium revenue 26,779,953 27,544,737 Net income from investments in subsidiaries and associates 2,863,487 1,524,364
Interest and similar income 2,541,356 2,641,998
Other income from financial assets 4,040,822 4,482,584
Income from investment property 341,024 297,525
Fee and commission income 258,654 244,623
Other income 703,509 891,251
Total revenue 37,528,805 37,627,082
Insurance claims and benefits incurred (23,158,302) (28,850,782)
Insurance claims and benefits recoverable from reinsurers 5,364,393 6,540,514
Net insurance claims and benefits (17,793,909) (22,310,268)
Investment contracts benefits (242,556) (312,666)
Interest and similar expenses (208,720) (345,209)
Other expenses from financial assets (159,745) (220,856)
Expenses from investment property (305,939) (650,763)
Acquisition costs and other operating expenses (6,299,003) (6,007,583)
Fee and commission expenses (375,088) (341,107)
Other expenses (1,790,671) (1,601,141)
Total expenses (27,175,631) (31,789,593)
Profit before tax 10,353,174 5,837,489
Income tax expense (2,059,974) (1,196,213)
Profit after tax 8,293,200 4,641,276
Net profit for the year 8,293,200 4,641,276
Weighted average number of shares 4,000,000 2,980,963
74
Unconsolidated balance sheet
AS AT 31 D EC EM B ER (I N TS K K ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Assets
Property, plant and equipment 85,721 98,800
Intangible assets 989,013 994,480
Investments in subsidiaries and associates 200 –
Financial instruments 4,489,966 4,149,137
Reinsurance assets 1,139,064 1,144,904
Deferred tax assets 10,654 14,649
Receivables from insurance, reinsurance and other receivables 1,020,239 606,247
Inventories 2,184 3,133
Cash and cash equivalents 703 5,728
Total assets 7,737,744 7,017,078
Liabilities
Insurance provision 5,195,447 4,759,850
Other financial liabilities 8,227 331,909
Insurance, reinsurance and other liabilities 1,770,538 1,252,341
Employee benefits 25,687 22,342 Tax liability 22,212 28,468 Total liabilities 7,022,111 6,394,910 Equity Share capital 550,000 550,000 Share premium 150,000 150,000
Legal and statutary reserves 10,489 3,374
Other reserves 20,142 12,517
Retained earnings (14,998) (93,723)
Total equity 715,633 622,168
Equity and liabilities 7,737,744 7,017,078
75
Unconsolidated income statement
FO R T H E Y E A R EN D ED 31 D EC EM B ER (I N TS K K ) AC C O R D I N G TO I N T ER N AT I O N A L FI N A N CI A L R EP O RT I N G STA N DA R DS 20 0 6 20 0 5
Gross premium written 3,601,634 3,041,624
Change in unearned premiums (gross) (16,385) (44,532)
Premium income gross 3,585,249 2,997,092
Premium ceded (outward reinsurance premium) 1,210,584 1,196,797
Change in unearned premiums (reinsurance share) 9,368 4,285
Premium income net 2,365,297 1,796,010
Fee and commission income 246,811 236,649
Income from investments 151,313 115,070
Other operating income 64,225 40,795
Total income 2,827,646 2,188,524
Expenses connected with insurance contracts 1,815,823 1,572,280
Reinsurance share (420,869) (511,326)
Net insurance claims and benefits 1,394,954 1,060,954
Acquisition cost 630,277 520,480
General administrative expenses 489,973 374,309
Expenses connected with investments 9,456 5,388
Other operating expenses 148,416 108,505
Financial expenses 5,476 9,600
Total expenses 2,678,552 2,079,236
Net profit before tax 149,094 109,288
Income tax expense 63,254 37,306
