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Our fiscal year
2023/24

Strong performance in challenging times

The EOS Group looks back on a demanding and successful financial year 2023/24. Despite the challenges in a difficult macroeconomic environment, the EOS Group achieved excellent earnings.

  • Thanks to investments in receivables portfolios from previous years, we managed to keep revenue at a high level of EUR 997.3 million
  • The EOS Group is in good financial condition. Although EBITDA was lower in fiscal 2023/24 than in the remarkably good previous year, it is still high
  • At EUR 583.5 million, investments in Non-Performing Loans (NPLs) were significantly below those in the exceptional year 2022/23

Our financial year in brief

Earnings (EBITDA)

in EUR million
0

Consolidated revenue

in EUR million
0

Investment volume

in receivables portfolios in EUR million
0

Three questions for our new CFO

Eva Griewel, CFO of the EOS Group since August 2024, on leading by example, her expectations for the current fiscal year and the anticipation of re-joining the dynamic EOS family

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3 questions for Dr. Eva Griewel

Insights into fiscal 2023/24

Revenue development and earnings

Stable development: Despite a difficult market environment, EOS Consolidated achieved an excellent result in fiscal 2023/24, validating the previous year’s high revenue level.

Revenue development and earnings

In fiscal 2023/24, the revenue of EOS Consolidated increased slightly by 2.1 percent, confirming the strong operational performance of the past few years. By successfully processing receivables portfolios purchased in previous years, EOS Consolidated managed to maintain its revenue level. Earnings (EBITDA) declined moderately (–7.4 percent) compared to the previous year. The decline can be attributed to negative one-time effects and to inflation-related operational expenses. GRI 201-1

Revenue development

in EUR million





792.5
2020/21
804.9
2021/22
977.1
2022/23
997.3
2023/24

Earnings development (EBITDA)

in EUR million





312.4
2020/21
282.5
2021/22
445.9
2022/23
412.9
2023/24

Consolidated revenue by region

In fiscal 2023/24 EOS Consolidated achieved high revenue in all regions.
EOS Consolidated maintained or slightly increased the previous year’s high revenue level in all operational regions, largely owing to the strong performance of the EOS companies in the processing of receivables portfolios purchased in past years. With a share of 41.9 percent, Eastern Europe remains the strongest performing region within EOS Consolidated. Significant revenue increases were recorded especially by the companies in Bosnia and Herzegovina, Bulgaria, Greece, and Poland. Together, the Western European EOS companies achieved 32.4 percent of the total revenue in fiscal 2023/24. Here revenue climbed most significantly (+ 6.9 percent) compared to the other regions. One reason for the positive development was successful processing of existing receivables portfolios, especially in France. At 25.5 percent, the share of total revenue in Germany nearly matched the previous year’s level. Solid revenue was achieved in receivables processing, even though the competitive situation remained challenging, and the company purchased fewer receivables portfolios than in 2022/23.
Figures in MEUR
Total
997.3
Eastern Europe
418.3
Western Europe
323.4
Germany
253.8
North America
1.8

Financial performance in 2023/24

  • Revenue by region

    In EUR thousand
    With an increase of 2.1 percent to a total of EUR 997.3 million, the revenue of EOS Consolidated in fiscal 2023/24 was slightly above the previous year’s level (EUR 977.1 million). The largest revenue share at EUR 418.3 million was recorded by the companies in Eastern Europe. The region thus exceeded by one percent the previous year’s extraordinarily high revenue level. In Western Europe, revenue climbed 6.9 percent to EUR 323.4 million. At EUR 253.8 million and a share of 25.5 percent of the Group total, revenue in Germany was on a par with the previous year. Revenue earned in North America came from receivables portfolios acquired until 2021 which remained in the EOS Group after the divestment of subsidiaries there. The buyer processes those portfolios in a fiduciary capacity. GRI 201-1
    2023/24 2022/23 Change on the previous year (%)
    Eastern Europe 418,284 414,125 +1.0
    Western Europe 323,408 302,508 +6.9
    Germany 253,828 252,953 +0.3
    North Amerika 1,759 7,525 -76.6
    EOS Consolidated 997,280 977,110 +2.1
  • Consolidated income statement (summary)

    In EUR thousand
    In fiscal 2023/24, EOS Consolidated achieved Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the amount of EUR 412.9 million (previous year: EUR 445.9 million). Compared to the previous year, revenue climbed slightly by 2.1 percent or approximately EUR 20.2 million. The revenue level was maintained due to the extraordinarily high investments made in previous years. GRI 201-1
    2023/24 2022/23
    Revenue 997,280 977,110
    Total operating income 1,008,484 991,251
    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) 412,919 445,943
    Earnings Before Tax (EBT) 312,921 380,072
    Net income 244,349 297,270
  • Assets situation 

    In EUR thousand
    Total assets of EOS Consolidated grew 6.1 percent to a total of EUR 3.2 billion compared with the previous year. Of the total assets, purchased portfolios account for 76.1 percent (previous year: 79.4 percent) and real estate in inventories for 9.0 percent (previous year: 8.7 percent). GRI 201-1

    *Financial presentation
    2/29/2024 in % 2/28/2023 in %
    Fixed assets 174,247 5.4 200,620 6.6
    Purchased receivables and real estate in inventories* 2,739,113 85.1 2,670,136 88.0
    Receivables 70,565 2.2 40,181 1.3
    Cash and cash equivalents 174,217 5.4 66,255 2.2
    Other assets 61,168 1.9 55,608 1.8
    Total assets 3,219,310 100.0 3,032,800 100.0
  • Equity and financing

    In EUR thousand
    In the past financial year, total financing increased by EUR 186.5 million to EUR 3.2 billion compared with the previous year.

    The company’s equity increased by about EUR 0.2 billion to EUR 1.3 billion by means of a partial profit retention. The equity-to-assets ratio increased to 39.9 percent (previous year: 36.6 percent), which, relatively speaking, constitutes a very high level for a financial services provider.

    The financial needs of EOS Consolidated are covered by loans from banks and the parent company. Most of this financing with short-term maturity increased slightly from 84 percent to 88 percent of debt financing compared with the previous year. GRI 201-1

    For accounting reasons, tables and text may contain rounding differences.
    2/29/2024 in % 2/28/2023 in %
    Equity 1,284.506 39.9 1,110,654 36.6
    Provisions 69,485 2.2 58,452 1.9
    Liabilities with banks 87,665 2.7 132,387 4.4
    Liabilities with related parties and companies 1,411,266 43.8 1,482,754 48.9
    Trade payables 142,459 4.4 47,247 1.6
    Other liabilities 223,930 7.0 201,306 6.6
    Total financing 3,219,310 100.0 3,032,800 100.0

Two decades of successful collaboration

For more than 20 years, the IT service provider Konica Minolta has transferred receivables to EOS in Germany, which allows the company to fully focus on its core business. This video shows us how EOS has helped optimize Konica Minolta’s receivables management.

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Sticker, Number, Symbol, Recycling-Symbol, Advertisement, Text, Page, Sign, Logo, Blackboard

How the purchase of NPLs strengthens the economy and why EOS is the right partner

When customers can no longer pay back their debts, lending banks too face serious difficulties. After all, too many Non-Performing Loans (NPLs) drive creditors into distress. Creditors solve this problem by selling their receivables to specialized companies, such as the EOS Group. Banks thereby lower their NPL ratio while companies reduce their default risk and transform outstanding receivables into liquidity.

EOS has decades of experience and expertise in debt purchase, that is, in secured (backed by a material countervalue such as real estate) and unsecured debts (such as consumer loans). After purchasing NPLs, EOS strives to find an amicable solution with the borrowers. When successful, liquidity for banks and companies is ensured and capital for new investments is freed up so that the economic cycle can get going again. GRI 2-6

‘Despite the tense macroeconomic environment, our investments in NPLs remain at a high level.’

Marwin Ramcke, CEO of the EOS Group
As EOS Group, we benefit from the fact that we are not dependent on individual markets and have established an excellent reputation as investor over the years. Not least because we value long-term investments and base our calculations on realistic forecasts. This gives us and the sellers the security we need to succeed today and in the future.
Zdjęcie portretowe Marwina Ramcke, prezesa zarządu Grupy EOS, stojącego w jasnym pomieszczeniu i ubranego w ciemną marynarkę

Investments in debt purchases and real estate in 2023/24

In fiscal 2023/24, EOS Consolidated invested a total of EUR 583.5 million in the purchase of unsecured and secured receivables and in real estate. This is a significant decline compared with the previous year’s extraordinarily high investments. EOS purchased most of the NPL portfolios on the Western European market in financial year 2023/24, when it invested EUR 238.6 million. Major transactions were conducted in France, Belgium and Portugal. In Eastern Europe, EOS Consolidated invested EUR 212.5 million in receivables portfolios, for the most part in the Polish, Greek, and Croatian markets. In Germany, the market remained challenging as a result of great competitive pressure. Here EOS Consolidated invested EUR 132.2 million in receivables and real estate.

For accounting reasons, tables and text may contain rounding differences.
In EUR million
Total
583.5
Eastern Europe
212.5
Western Europe
238.6
Germany
132.2
Central
0.2

Unsecured

414.9
Eastern Europe
67.1
Western Europe
221.9
Germany
125.7
Central
0.2

Secured / bridge loans / Real estate

168.5
Eastern Europe
145.4
Western Europe
16.7
Germany
6.5

Purchased receivables in 2023/24

The carrying value of the portfolios at the end of the financial year was EUR 2.7 billion, which is an increase of about EUR 69.0 million compared with the previous year.

The value of unsecured receivables climbed by EUR 91.4 million compared to the previous year, while the value of secured portfolios and real estate declined slightly by EUR 22.4 million. The companies in Western Europe recorded the highest carrying value Group-wide, followed by Eastern Europe and Germany.

For accounting reasons, tables and text may contain rounding differences.
In EUR million
Total
2,739.1
Eastern Europe
967
Western Europe
1,127.4
Germany
595.2
Central
49.6

Unsecured

1,751.5
Eastern Europe
474.2
Western Europe
822.1
Germany
405.6
Central
49.6

Secured / Real estate

987.6
Eastern Europe
492.8
Western Europe
305.2
Germany
189.6

Sustainable investments in Poland

Collaboration with the International Finance Corporation (IFC) is expanding. Since fiscal year 2023/24, EOS and IFC have invested in Non-Performing Loans (NPLs) and real estate owned by financial institutes in Poland. When they help banks to settle NPLs, capital is freed up for granting new loans. “Poland is one of the largest and most active NPL markets in Eastern Europe. In addition to the positive contribution to the country’s economy, we consider environmental, social and governance aspects in selecting and processing NPLs,” says Carsten Tidow, Member of the Board of Directors of the EOS Group who is responsible for the Eastern European market. “The collaboration strengthens our position as one of the leading players in the Polish market,” adds Borys Drajczyk, Member of the Management Board and Chief Investment and Technology Officer at EOS Poland.
Przedstawiciele IFC odwiedzili EOS w Hamburgu, aby uczcić współpracę na rynku polskim i potwierdzić zaangażowanie w zrównoważone inwestycje (od lewej do prawej: Borys Drajczyk, Chief Investment and Technology Officer w EOS Polska, Marcos Gomez Sierra, specjalista ds. inwestycji w trudne aktywa w IFC - Międzynarodowej Korporacji Finansowej, Dariusz Petynka, dyrektor zarządzający EOS Polska, Ariane di Iorio, globalna szefowa inwestycji w trudne aktywa w IFC, Marwin Ramcke, CEO Grupy EOS, Carsten Tidow, dyrektor zarządzający Grupy EOS, odpowiedzialny za region Europy Wschodniej)

Faster and more precise with software robots

Reliably digital: EOS advances the use of Robotic Process Automation (RPA). RPA handles digital tasks, such as preparing statistics, checking court announcements, and filing correspondence in the central debt collection system. Automation boosts the quality and efficiency in receivables management and relieves employees of tiresome routine tasks. During a test phase in Poland, the software robot achieved a success rate of 99% error-free cases. At least 90 robot solutions are being used in the EOS Group (e.g., in Bulgaria, Croatia, and Spain)—and the number keeps climbing. “RPA demonstrates the digital strength of EOS. It allows our employees to focus on more complex tasks that require human judgment,” says Dobrin Mirevski, Chief Digital Officer and founder of RPA at EOS in Bulgaria.
Zdjęcie portretowe Dobrina Mirevskiego stojącego w jasnym pomieszczeniu na tle okna

Excellent ESG Risk Rating

Top score right from the start: The EOS Group has received its first external ESG Risk Rating. The renowned rating agency Morningstar Sustainalytics checks how companies manage crucial industry-specific sustainability risks. It gave EOS an excellent 9,9 rating (“negligible risk”)—on a rating scale of 0 to 40+. The rating puts the company in the top three of all rated companies in the Consumer Finance sector. EOS was assessed in categories such as Human Capital, Corporate Governance and Business Ethics. The strong result validates the sustainability strategy of the EOS Group. “We are very well positioned in many areas. However, the rating is an incentive to become a little better every day,” says CEO Marwin Ramcke.
Certyfikaty ESG Copyright @2024 Morningstar Sustainalytics. Wszelkie prawa zastrzeżone

Record portfolio in France

Largest portfolio ever purchased by an EOS company: In 2023 EOS France and Veld Capital purchased a portfolio of regulated French consumer debt from BNP Paribas. The total amount of the receivables is EUR 364 million. “The success is the result of a long-standing partnership and trust between BNP Paribas and EOS,” says Nathalie Lameyre, Managing Director of EOS France. At EOS, more than 50 employees from the fields of statistics, risk assessment, law, IT, sales and customer relations participated. With the transaction, EOS and Veld have solidified their collaboration after earlier joint investments in many European countries and asset types.
Nathalie Lameyre, Managing Director EOS France

Continuing on the road to success in Denmark

Impressive developments in the anniversary year: In 2023, EOS Danmark signed two major forward flow contracts with leading consumer credit banks. The timing coincided with the 10-year anniversary celebrated by EOS in Denmark that same year. EOS Danmark received the Gazelle Award for the third time after 2019 and 2020. The leading financial newspaper Borsen gives the award to the fastest growing, profitable companies. The main criterion for qualification is that the company must have doubled its net sales or gross profit over the past four years.
Grafika z kulą ziemską, do której przypięte są stylizowane pinezki. Jedna z nich jest oglądana przez lupę i znajduje się mniej więcej w miejscu Danii.

Successful international receivables management

Unlimited service: When cross-border receivables were involved, more than 1,620 companies, including 679 new customers, relied on the international debt collection of EOS in fiscal 2023/24. Our strong network of local partners saves customers time and effort, ensures compliance with relevant legal regulations and shows respect for regional mentalities. The numbers show how successful the strategy has been. Ninety-six percent of all successful cross-border collections could be settled out of court, a procedure that speeds up the process and lowers costs. In 2023/24, EOS took on 109,805 cross-border cases in 199 countries; an average of 143 days passed until the first payment of a cross-border receivable was made. Some 500 employees work for EOS in cross-border debt collection.
Napis czerwonymi literami na czarnym tle „109 805 spraw transgranicznych”

50 Years of EOS: We share memories

Fifty years of EOS. That’s 50 years of innovation, responsibility, and passion. In our review format we present people who have been part of our successful journey. They tell us what makes EOS special.

‘Kollecto+ proves that technology can drive both processes and corporate culture. We no longer think in silos but collaborate internationally.’

Cristian Musat, Managing Director of EOS Technology Solutions
International Collaboration with Kollecto+

Originally every EOS company had its own debt collection system. Then EOS Romania was asked to develop software that standardizes processes. The result was the web-based platform Kollecto+. The new system unifies processes, creates synergies and makes the debt collection process more efficient. To date, Kollecto+ has been implemented in 10 of the more than 20 EOS countries—more are being added at a steady rate. As a result, every country does not have to start from scratch with every new process—a prime example of cross-border collaboration. Kollecto+ is developed continuously, creating the basis for the further digitalization of processes.
Zdjęcie portretowe Cristiana Musata, Managing Director w EOS Technology Solutions, na czerwonym tle

‘I feel very comfortable in my team. For the next 50 years I wish EOS continued great success and exciting innovations!’

Patrizia Christen, Collection Specialist, EOS in Switzerland
EOS has changed since I joined the company in 1986, working in different departments over the years—from data collection to payment control and debt collection to customer service, where I currently work. What I particularly appreciate at EOS is the flexible working hours and the option of working from home. One of the most important innovations was the replacement of our debt collection system in 2020. I was given the opportunity to be part of the project and have learned a whole lot. As a power user, I can now help to further advance the system.
Zdjęcie portretowe Patrizii Christen, Collection Specialist w EOS Szwajcaria, na jasnym tle

‘EOS Spain has made some impressive changes in strategy and culture since I joined the company.’

Carlos Lorenzo, Managing Director, EOS Spain
Our incentive: continuous improvement

Always adapting to the needs of the market and preparing for the challenges of the future are absolutely necessary for any company. In Spain, EOS has mastered these changes extraordinarily well with a new operational direction and strategy, cultural change and advanced technology. All of this is based on joint growth—thanks to international collaboration, mastering challenges together and sharing successes as a team.
Zdjęcie portretowe Carlosa Lorenzo, Managing Director w EOS Hiszpania, na jasnym tle

‘We are proud to be part of an international community where people believe in us, trust us and give us a chance.’

A. Chromińska, Director Unsecured Receivables Department, EOS Poland
Being international is key

When I joined EOS in 2006, shortly after the move to our new office, conditions were austere. During the ongoing renovation work, we worked surrounded by dust and drilling noises. However, every one of us had a sense of building something valuable, of helping shape the company from the ground up. That inspired us—and the coffee we drank together tasted delicious. We had clear goals and a vision for the future.
Zdjęcie portretowe Agnieszki Chromińskiej, Dyrektor Departamentu Wierzytelności bez Zabezpieczenia w EOS Polska, w otoczeniu biurowym

Our 2023/24 Report in brief

Our responsibility

An interview with the EOS Board

Read the interview

Three questions for our new CFO

Watch the video

Fair debt collection: How we find solutions for defaulting consumers

More on ethical collection at EOS

Overview of the Annual and Sustainability Report

To the overview
Disclaimer

Reporting period: March 1, 2023, until February 29, 2024
Last revised: August 2024