Home Credit Group

Home Credit Group (”Home Credit”) is a leading multi-channel provider of consumer finance in Europe with a strong foothold in Asia. Founded in 1997, Home Credit Group is focused on nine key consumer finance markets of the Czech Republic, Slovakia, the Russian Federation, Belarus, Kazakhstan, China, Vietnam, India, and Indonesia and is developing a new business in Philippines. Its 41,600 employees have so far served 33 million customers across all geographies where the services are provided under the Home Credit brand (as at 31 December 2012).

Products and its distribution
Home Credit’s core business is to provide consumer finance lending to qualified, mass market retail customers, often first-time borrowers. This largely takes the form of in-store financing, i.e. non-collateralized, non-cash loans primarily to customers seeking purchases of consumer durable goods; Home Credit provides this service directly in the shops as point-of-sales loans. In more mature markets, Home Credit also provides cash loans, credit cards, revolving loans or car loans, predominantly to existing customers who have already established a good track record with the company. As business expands the company is also selectively adding retail banking services.

Currently Home Credit Group has a multichannel distribution network with a relatively low cost base consisting 111,000 distribution points (952 branches, 107,000 sales points, 3,097 post offices, telephone and internet; as at 31 December 2012).

Business model
Home Credit Group’s achievements to date have been driven by the successful implementation of its 3-step strategy business model which has been rolled-out across all of Home Credit’s key markets. The model evolves from point of sales outlets (“POS”) financing to broader consumer credit products and ultimately to a fully-fledged branch-enabled consumer lender. Indeed, in countries where Home Credit holds a banking license, the company also offers retail banking services such as deposits or current accounts. The ultimate focus is on facilitating strong cross-selling opportunities and enhancing our customer relations offering to increase retention rates. In this way, Home Credit Group operates through its companies in nine markets and has expanded in CEE, CIS and Asian regions through a combination of green-field operations, acquisitions, and joint ventures – a strategy that is hard to replicate.

Group structure
Home Credit B.V. (HCBV) is the holding company for the Home Credit subsidiaries based in the Czech Republic, Slovakia, Russia, Belarus, Kazakhstan (through Home Credit and Finance Bank Russia), and also, through HC Asia N.V., provides consumer finance services in co-operation with local partners in China (“guarantee model”), India, Indonesia and is currently developing a new operation in the Philippines. PPF Group N.V. is the 100% shareholder of Home Credit B.V.*

PPF Group N.V. is a 100% direct shareholder of PPF Vietnam Finance Co. Ltd. (“Home Credit Vietnam”) and Home Credit Consumer Finance Company Co., Ltd. (“Home Credit China CFC”, which operates under the Consumer Finance Licence in Tianjin, China).**

*PPF Group announced the completion of the process of the assets division on March 29 following Jiří Šmejc’s departure from the position of PPF Group shareholder. Jiří Šmejc gains a direct shareholding of 13.37% in Home Credit B.V. and in Air Bank a.s. The remaining 86.63% in both companies will be owned by PPF Group N.V. The settlement of the above mentioned agreements is subject to approval of appropriate regulation authorities. Following the settlement of the transaction the shareholding of PPF Group N.V. will be divided as follows: Petr Kellner 98.94%, Ladislav Bartoníček 0.53% and J.-P. Duvieusart 0.53%.

**“Home Credit B.V.” executed  agreements with “PPF Group N.V.” concerning future acquisition of a 100% ownership stake in the following companies “Home Credit Consumer Finance Co., Ltd.” [China], “CF Commercial Consulting (Beijing) Co. Ltd.” [China] and “PPF Vietnam Finance Company -  Limited” [Vietnam]. The completion of the transactions is subject to obtaining regulatory approvals by the respective regulators in China and Vietnam.

External links

• Home Credit