PPF Group Annual Report 2018 Annual Report 2018 4 PPF Group Annual Report 2018 Contents 5 6 Foreword 12 PPF Group 13 Group Profile 16 Shareholders 17 Description of the Company PPF Group N.V. 17 Selected Financial Highlights of PPF Group 20 Governing Bodies 26 PPF Group Major Assets 34 Selected PPF Group Companies 35 PPF Financial Holdings 38 Home Credit 39 Air Bank 42 PPF banka 43 ClearBank 46 Škoda Transportation 50 PPF Arena 1 52 CETIN 53 O2 Czech Republic 54 Telenor CEE 54 PPF Real Estate Holding 56 PPF Life Insurance 57 SOTIO 62 Mall Group 62 Heureka 63 O2 arena 63 Culture Trip 64 Significant Events at PPF Group 74 Corporate Social Responsibility and the Support of Culture 80 PPF Group History 84 Financial Section 211 Contacts 6 PPF Group Annual Report 2018 Foreword Dear Friends, efficiently, and to adhere to Western business standards. I am not fond of media posturing; we at PPF do not show 2018 was another successful year for PPF Group. Assets off who we are or what we have achieved. But that does under management broke through EUR 45 billion and not mean that we are indifferent to where and how we live, PPF Group’s total profit came to EUR 815 million. Of course, or to the world our children will be inhabiting. Since PPF it gives me great pleasure that, together with my fellow was founded, we have donated tens and subsequently workers, we were able to achieve this over the twenty-eight hundreds of millions of crowns to charity, the support years of PPF’s existence. Yet at the same time, and perhaps of education, and the arts. precisely because of this, I have found myself thinking about how much the world’s stability and equilibrium, In today’s fractured society, dialogue and our ability so intricately built up, has been changing in recent years. to listen to one another keep diminishing, yielding to a simplified vision of the world. Too many people merely For my generation, freedom, diligence, an entrepreneurial mutually reinforce their own interpretation of the world. mindset and respect for traditions are the fundamental Sometimes the worlds on social media and virtual images tenets on which we have shaped our opinions and seem to be more important than real deeds. I do not think stances. These are also the values that helped us to they are. create our business and build companies around the world. However, today’s Western society, and Europe in I still believe that life consists of what we actually do. particular, is increasingly swayed by the ideology of indi- vidual entitlement, egalitarianism, and the relativisation Please remember that as you read the following pages, of traditional values. Modern ideologies tend to hobble which sum up our business activities in 2018. freedom, creativity and critical thinking. Nevertheless, I am confident that Czech society, which has traditionally Petr Kellner depended primarily on the craftsmanship and diligence of its people, will hold its own in such a world. We at PPF are keen to contribute to that. As a company, PPF cannot and will not enter politics. It is our job and responsibility to manage our various companies soundly, to engage in business honestly and 7 8 Name Petr Kellner Date 3 May 2019 Location Prague Czech Republic 9 10 Petr Kellner Founder and majority shareholder, PPF Group N.V. 11 12 PPF Group Annual Report 2018 PPF Group PPF Group 13 Group Profile PPF Group’s investments are channelled into various industries, such as banking and financial services, telecommunications, real estate, mechanical engineering, biotechnology and insurance. PPF operates in Europe, Asia and North America. PPF Group’s assets as at 31 December 2018 amounted to EUR 45 billion. PPF Group’s professionalism and ambition is underpinned by more than 25 years of work by the founder and majority shareholder of PPF Group N.V. and his team of fellow workers. PPF Group’s corporate ownership and governance structure is in the Netherlands: PPF Group N.V., headquartered in Amsterdam, is a key PPF Group holding company where strategic decisions governing the entire Group’s operations are taken. 14 Ladislav Bartoníček Shareholder, PPF Group N.V. 15 16 PPF Group Annual Report 2018 Shareholders Petr Kellner Jean-Pascal Duvieusart Founder and majority shareholder, PPF Group N.V. Shareholder, PPF Group N.V. (share of voting rights: 98.93%) (share of voting rights: 0.535%) Born in 1964; graduated from the Faculty of Industrial Eco- Born in 1966; a graduate of the University of Chicago (MBA) nomics, University of Economics, Prague, in 1986. He is one and the Catholic University of Louvain, Belgium (specialisation of PPF Group’s founders and was chairman of the Board of in Commercial Engineering). He joined McKinsey in 1992 and Directors of PPF a.s. from January 1998 to March 2007. He was worked in Brussels and New York prior to moving to Central a member of the Board of Directors of Assicurazioni Generali Europe. He was a managing partner at McKinsey Prague from April 2007 to March 2013. Petr Kellner oversees the between 1999 and 2005, when he assumed leadership of Group’s strategic development and its future direction. McKinsey CIS and Central Europe. He has advised banks and insurance companies, as well as various industrial compa- nies, in Russia, the Czech Republic, Slovakia, Hungary, Poland, Ladislav Bartoníček and Romania. Since 2017, he has been part of Home Credit Shareholder, PPF Group N.V. Group’s leadership, and since 2018 he has been a member (share of voting rights: 0.535%) of PPF Real Estate Holding’s Board of Directors. Jean- Pascal Duvieusart has been a shareholder of PPF Group N.V. Born in 1964; a graduate of the Faculty of Electrical Engineer- since 2010. ing, Czech Technical University in Prague. He joined PPF investiční společnost a.s. in 1991 as Executive Director. He was awarded an MBA by the Rochester Institute of Technology, New York, in 1993. From 1996 to September 2006, he served as Chief Executive Officer of the insurance company Česká pojišťovna a.s. In 2007, he was appointed CEO and a member of the Board of Directors of Generali PPF Holding N.V. (GPH), one of the largest insurance groups in Central and Eastern Europe, which was established as a joint venture of PPF Group and Assicurazioni Generali. He held his CEO position at GPH until March 2013. From March 2014 to February 2018, he was CEO of SOTIO a.s., PPF Group’s biotechnology company. Since 2019, he has been the CEO of PPF Arena 1, the company consolidating PPF Group’s telecommunication investments. Ladislav Bartoníček has been a shareholder of PPF Group N.V. since 2007. PPF Group 17 Description of the Company PPF Group N.V. Date of incorporation 29 December 1994 Registered office Strawinskylaan 933, 1077XX Amsterdam, Netherlands Registration number 33264887 Basic share capital EUR 624,010 Business Holding company for the Group, financing Selected Financial Highlights of PPF Group EUR millions, based on IFRS 2018 2017 2016 Assets 45,084 38,222 27,041 Equity 7,485 6,907 6,361 Revenue 8,638 6,506 6,145 Profit after tax 815 642 1,031 Segments by equity value1 Other 16% PPF Financial Holdings2 45% Mechanical Engineering 5% Real Estate 11% Telecommunications 23% 1 As at 31 December 2018 2 Home Credit, Air Bank, PPF banka, ClearBank 18 Name Ladislav Bartoníček Date 3 May 2019 Location Prague Czech Republic 19 20 PPF Group Annual Report 2018 Governing Bodies 21 22 PPF Group Annual Report 2018 Governing Bodies of Selected Companies PPF Group N.V. Home Credit Česká telekomunikační infrastruktura (CETIN) Aleš Minx Jiří Šmejc Chairman of the Board of Directors Chairman of the Board of Directors Juraj Šedivý Chairman of the Board of Directors Jan Cornelis Jansen Jan Cornelis Jansen (from January 2019) Member of the Board of Directors Vice-Chairman of the Board of Directors Filip Cába Rudolf Bosveld Mel Carvill Vice-Chairman of the Board of Member of the Board of Directors Member of the Board of Directors Directors (from January 2019) Marcel van Santen Michal Frankl František Dostálek Member of the Board of Directors Member of the Board of Directors Chairman of the Supervisory Board Paul de Reijke Kamil Ziegler Member of the Board of Directors Member of the Supervisory Board Rudolf Bosveld Lubomír Král Member of the Board of Directors Telenor CEE Member of the Supervisory Board Jean-Pascal Duvieusart BULGARIA Member of the Board of Directors Jason King Ondřej Frydrych Chairman of the Board of Directors Member of the Board of Directors PPF Financial Holdings Marek Sláčík Member of the Board of Directors Kateřina Jirásková Member of the Board of Directors Jan Hanuš Member of the Board of Directors Lubomír Král PPF banka Member of the Board of Directors HUNGARY Petr Jirásko Jan Hanuš Rudolf Bosveld Chairman of the Board of Directors Chairman of the Board of Directors Member of the Board of Directors Jaroslava Studenovská Marek Sláčík Jan Cornelis Jansen Vice-Chairwoman of the Board Vice-Chairman of the Board of Directors Member of the Board of Directors of Directors György Koller Paul de Reijke Miroslav Hudec Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors SERBIA Gabriela Mošovská Mike Michel Member of the Board of Directors CEO Igor Kottman MONTENEGRO Member of the Board of Directors Mike Michel Chairman of the Board of Directors Sasa Filipović Member of the Board of Directors Vanja Stanković Member of the Board of Directors Governing Bodies 23 PPF Real Estate Holding PPF a.s.