Press release

EOS Group expands into Brazil

Hamburg/ Porto Alegre, 22.06.2011

As of 15 June, the international EOS Group (www.eos-solutions.com), a member of the Otto Group, has acquired 60 per cent of the shares in Hoepers Recuperadora de Crédito S.A., one of the top three debt collection companies in Brazil.

The expansion into Brazil ties in with the EOS Group’s strategic aims, which include a market presence in all the BRIC states. Paul Leary Sr., a member of the EOS Group’s Board of Directors, explains the importance of the Brazilian market for EOS: ‘The Brazilian economy and credit market are growing steadily. We are convinced that our investment in South America’s largest economy will pay off and further bolster our global capabilities.’

Commenting on the acquisition, Hans-Werner Scherer, Chairman of the EOS Group’s Board of Directors, says: ‘Hoepers is a family firm that has been established on the Brazilian market for 29 years and has strong, long-standing client relationships, including some of the country’s biggest banks. In Hoepers we have found an exceptionally successful local partner that suits us perfectly.’

The company was founded by the Hoepers family in 1982 and has its head office in Porto Alegre in the southern state of Rio Grande do Sul. It employs 2500 people at 16 locations throughout Brazil and focuses primarily on out-of-court debt collection for banks, telecommunications, car finance companies and retail credit companies.

The current chairman, Manfredo Hoepers, will continue to run the company. He sees advantages for both sides: ‘We will benefit from the size and strong financial background of the EOS Group. At the same time we are bringing our local expertise into the partnership and we plan on Brazil being a big part of the EOS Group’s future success.’

EOS Group takes over Credirec, a French debt collection company

Hamburg/ Paris, 28.04.2011

Today, the international EOS Group, an OTTO Group company, acquired 100 per cent of the shares in the French company Credirec and thereby entered the French market.

Hans-Werner Scherer, Chairman of the Board of Directors of the EOS Group comments: "France is the second largest economy in Europe. We had been looking for an appropriate local partner for quite some time. With Credirec, we have now found the perfect fit."

Credirec is the market leader on the French debt purchase market and belongs to the top ten in the field of debt collection. The company focuses on receivables management in the consumer segment. Credirec mainly works for credit institutions, automotive credit companies and utilities.

Mr Scherer explains: "Since Credirec was founded in 1993 it has kept all won customers. This shows that we have found a solid and successful partner that will support the growth of the EOS Group."

EOS is taking over all 240 employees of Credirec working at the company’s sites in Paris, Nantes and Pau. Also as regards the management, EOS is putting its trust in continuity. The current CEO Nathalie Laymeyre will continue to lead the company. She expresses: "We are happy to have found a partner, sharing the same values and quality standards. I am convinced that we will profit from the international know-how of our new colleagues and the financially strong background of the EOS Group."

EOS Group starts new business in Bosnia

Hamburg / Sarajevo, 01.02.2011

From February 1st 2011 on, the EOS Group, an OTTO Group company, starts its operative business in Bosnia. The local company EOS Matrix Ltd. offers debt purchase and debt collection in Bosnia and Herzegovina.

Christos Savvides, Member of the Board of Directors of the EOS Group with responsibility for Eastern Europe, comments the commercial decision: “There is a high demand for professional accounts receivables management in Bosnia. Ten percent of all credits in this country are defaulting, many of them in foreign currencies.” He explains: “In the past, companies mainly worked with internal receivables management solutions. During the financial crisis, many firms realized the importance of a consequent receivables management for securing the cash flow of their company.”

The collection of overdue debts is the core business of EOS. “We are specialists and often achieve better results in the collection of debts than the owner of the invoice,” Mr. Savvides adds.

The Bosnian EOS company is headed by Mirjana Vukovic. She has been working in the financial business for seven years, four of them in leading positions. Mrs Vukovic says: “We profit from the close collaboration with the EOS group companies in Serbia, Croatia and Macedonia. Our clients will benefit from the long term-experience and financial background of EOS.”

EOS Consolidated receives ‘A’ rating

Hamburg, 30 August 2010

For the sixth time in succession, Euler Hermes Rating GmbH has rated EOS Consolidated with an ‘A’. This means that the agency regards EOS’ credit standing as well above the average that prevails in the economy as a whole.

The main factors leading to this rating were the extremely high and enduring profitability of EOS Consolidated, its many years’ experience in debt purchase, its leading position in Germany and its strong presence in Eastern Europe. Its high quality of transaction handling in operational activities and its good management team, too, were convincing arguments for the credit rating agency. The report also emphasizes the quality, results and reputability of the debt-collection methods of EOS Consolidated as further crucial factors in the success of its operating activities.

The quality orientation of EOS’ strategy was assessed as convincing by the agency, and its assessors are expecting the rating to remain stable over the next twelve months. "This rating is proof that we met the challenges of the market in the past and will continue to be a reliable partner for our clients in the future, despite the difficult economic situation," says Justus Hecking-Veltman, member of the EOS Group’s Board of Directors and Chief Financial Officer. "Furthermore, the rating report clearly illustrates that EOS is in a good position to implement its international growth strategy. It is confirmation that we have been following the right path," adds Mr Hecking-Veltman.

IFC Partners with EOS to Tackle Nonperforming Loans in Central, Eastern Europe

30.06.2010

Moscow, Russia - IFC, a member of the World Bank Group, today announced that it will partner with EOS Group of Hamburg, Germany to address the growing problem of nonperforming loans in Central and Eastern Europe and help restore lending to businesses and consumers.

EOS and IFC have earmarked close to $100 million to co-finance the acquisition and resolution of distressed debt. Over a period of three years, IFC and EOS expect to resolve nonperforming debt with a face value of up to $2 billion. Activities initially will focus on Russia where nonperforming loans are valued at about $50 billion. IFC and EOS have agreed to jointly invest in consumer debts in Russia and assets will be managed by local the EOS subsidiary. The co-investment program is expected to expand to other markets in the region.

“We are pleased to partner with IFC,” said Justus Hecking-Veltman, Member of the EOS Group’s Board of Directors and Chief Financial Officer. “This co-investment will allow us to grow our business in markets which have been hard hit by the financial crisis, while sharing risks and upside with a strong partner.” Owned by Germany’s Otto Group, EOS has more than 30 years experience in debt collection and is a market leader in many CEE countries.

Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said, “Dealing with distressed assets is a key component of IFC’s crisis response. Tackling nonperforming loans will help ensure that banks can continue to provide access to finance for businesses and individuals, which is essential for economic recovery.”

The initiative is part of IFC’s Debt and Asset Recovery Program (DARP), which was launched by IFC during the World Bank Group’s 2009 Annual Meetings in October. IFC will contribute up to $1.55 billion to the DARP over three years and expects to mobilize additional funding from other international financial institutions and private sector partners. DARP invests directly in businesses that need to restructure debt, and in distressed assets and restructuring funds. The program also invests indirectly via funds targeting pools of distressed assets. To date, under DARP, deals have been closed in Europe and Central Asia, East Asia, and Latin America and the Caribbean.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org

About the EOS Group

The EOS Group is a leading international provider of tailor-made services covering the entire life cycle of a customer relationship – from customer acquisition to electronic payment processing, debt collection and purchase of receivables portfolios. The core business is receivables management. EOS is committed to high standards of debt collection to protect creditors and consumers. With over 4000 employees, EOS serves its 20,000 customers in more than 20 countries worldwide through over 40 subsidiaries. For more information, visit: www.eos-solutions.com

The Career Issue Newsletter: Macedonia Competes

Мay, 2010

Efforts to strengthen Macedonia’s competitiveness and wider economy face a critical gap between the skills offered by the country’s workforce and the demands of companies who must operate and thrive in a global knowledge economy. The MyCareer initiative from the USAID Macedonia Competitiveness Project is helping bridge that gap while helping young people find employment...

“EOS is a global brand, which puts significant investment into recruitment
and selection but also into the training and education of the quality staff in the company,” said Marina Sivakova-Taskov, Human Resources Manager. “Therefore, we decided to use MyCareer as one of the channels through which we would select and recognize potential staff members.”

EOS Group acquires True North AR in the U.S.

Hamburg, 5 May 2010

As of 30 April 2010, the international EOS Group, an Otto Group company, acquired 100 per cent of the stakes in the U.S.-American company True North AR, LLC. Established in 1968, True North provides healthcare revenue cycle solutions and debt collection services to county and municipal courts, government and other businesses. Hans-Werner Scherer, Chairman of the Board of Directors of the EOS Group, says: ‘With this investment, the EOS Group strengthens its market position as arrears and receivables management company in the U.S. even further.” The acquisition fulfills a component of the company’s geographic strategy which included the expansion to the U.S. west coast (California). Mr Scherer adds: “The company is a highly profitable business. With the transaction we enhance our revenue. In addition to that we improve our service level and the relationships with our clients in EOS’s existing lines of business in the U.S.” Additionally, the company’s specialist know how in the healthcare industry fits in with the one of the existing EOS subsidiuary in the U.S., EOS CCA. EOS takes on the 120 people True North AR employs, most of which work at the California offices Novato and Sacramento. Manoj Sharma, CEO of True North AR, will continue to run the business.

The EOS Group

The EOS Group is a leading international provider of tailor-made services covering the entire life cycle of a customer relationship – from customer acquisition to electronic payment processing, debt collection and purchase of receivables portfolios. The core business is receivables management. EOS is committed to high standards of debt collection to protect creditors and consumers. With over 4000 employees, EOS serves its 20,000 customers in more than 20 countries worldwide through over 40 subsidiaries. More information: www.eos-solutions.com

‘A’ rating for EOS consolidated

Hamburg, 9 November 2009 

For the fifth time in succession, Euler Hermes Rating GmbH has awarded an ‘A’ rating to EOS consolidated. This means that the agency regards the company’s credit standing as well above the average that prevails in the economy as a whole.

The crucial factors in this appraisal were the very high and sustainable earnings power, its strong market position in Germany and the high quality and efficiency of its transaction handling in normal business operations. The rating agency was also convinced by the company’s high internal refinancing potential and its very high level of financial flexibility. The rating report emphasized the long experience in debt purchasing using efficient analytical methods, the effective risk estimates and monitoring activities, and the successful debt collection methods used by EOS.

The agency’s auditors assessed the strategic orientation of EOS consolidated in the receivables management field as convincing and expect its rating to show a stable trend over the next twelve months. ‘This rating certifies that we are capable of meeting the current challenges of the market and that we are a reliable business partner even in a difficult global economic environment,’ says Justus Hecking-Veltman, Board Member and Chief Financial Officer at the EOS Group. ‘The rating also reflects our chances of growing both in Germany and abroad, and confirms that EOS’s strategy is on the right track,’ adds Mr Hecking-Veltman.

About the EOS Group

With over 4000 employees in more than 20 countries, the EOS Group, a member of the Otto Group, is one of the leading financial services companies in Europe. The over 40 operating companies in the group are active in the receivables management, marketing and risk information as well as payment services segments and look after some 20,000 clients around the world – from banks and insurance companies, the manufacturing industry and mail order segment to public utilities, telecommunications firms and IT companies. For further information see www.eos-solutions.com.