BEST S.A. wins litigation with Kredyt Inkaso

The District Court in Warsaw acceded to the arguments of BEST S.A. and Krzysztof Borusowski, President of the company’s Management Board, and dismissed Kredyt Inkaso S.A.’s claim for payment of PLN 60.7 million in its entirety.

The court's ruling concerned Kredyt Inkaso’s lawsuit for payment, jointly and severally by BEST S.A. and Krzysztof Borusowski, of PLN 60.7 million in damages. The damages concerned an alleged loss by Kredyt Inkaso, in 2016, of contracts for the management of claim portfolios owned by the group of funds managed by AgioFunds TFI S.A. and Trigon TFI S.A. In the course of the proceedings, BEST S.A. presented evidence to the court proving that the action brought by Kredyt Inkaso was part of a campaign pursued by the then management board of Kredyt Inkaso, aiming to persuade Kredyt Inkaso’s shareholders (among others, individual investors) to sell their shares under a call for the sale of shares announced by Waterland. The proposition that the lawsuit was instrumentalised is confirmed, among other things, by the position of the former President of Kredyt Inkaso S.A. presented in the e-mail correspondence disclosed in the 2023 report of the Special Auditor (available at: Auditor’s Report), in which Mr Paweł Szewczyk pointed out that the filing of a multi-million lawsuit against BEST S.A. and Krzysztof Borusowski was expected to influence the opinions of Kredyt Inkaso’s shareholders at that time.

The ruling is final.

- We are pleased to announce the court’s decision. BEST Capital Group has always stood for business integrity and compliance. We hope that this ruling will mark a new chapter for Kredyt Inkaso, also in the area of the company’s relations with its minority shareholders. We hope that Kredyt Inkaso’s current Management Board will spare no efforts to pursue damages from the company's former managers for the harm caused to the company and its shareholders – comments Krzysztof Borusowski, President of the Management Board of BEST S.A.

New public bond issue programme of BEST S.A.

The Management Board of BEST adopted a resolution on establishing a new public bond issue programme with a total value of up to PLN 250 million. The company plans to submit a prospectus for the programme with the Polish Financial Supervision Authority as soon as possible.


- Similar to last year, we want to regularly offer individual investors the opportunity to invest in BEST S.A.'s debt securities in 2024. With last year’s bond offerings, we placed debt amounting to a total of PLN 150 million. We see the bonds’ success and the keen interest in the company’s bonds listed on the Catalyst market as a confirmation of BEST Group’s development strategy. We hope to see an equally successful year in terms of investor interest in our offering, says Krzysztof Borusowski, President of BEST S.A.


The previous public bond issue programme of BEST S.A. ended last autumn as the prospectus expired. As part of that programme, public issues with a total value of PLN 94 million were carried out. In its entire history, BEST Capital Group has issued bonds with a total nominal value of PLN 1.29 billion, out of which PLN 1.04 billion have already been redeemed.

BEST Capital Group’s record investments and growing recoveries in 2023

In 2024, the GPW-listed debt management company acquired claim portfolios with a nominal value of nearly PLN 2.1 billion, spending a record PLN 311 million. BEST Group closed 2023 with PLN 384.8 million of debt repayments due to the Group, up by PLN 12 million on 2022.

A major part of last year's investments in claim portfolios was carried out by BEST Group in the last quarter of the year, at that time acquiring claims worth more than PLN 1.8 billion for PLN 275.5 million. The value of the Group's capital expenditures rose by more than 273% year-on-year in the fourth quarter and increased by 137% for the year as a whole. – We are pleased with both the scale of acquisitions in the past year, the quality of the portfolios acquired and the prices paid. We continue to implement the Group's development plan with the aim to significantly increase the scale of our operations, both on the domestic market and abroad, explains Marek Kucner, Vice-President of the Management Board of BEST S.A.

In the final quarter of 2023, BEST Group recorded a 3% increase in the value of repayments owed to the Group from the portfolios to PLN 92.3 million. Total repayments (taking into account recoveries from portfolios co-owned by BEST Group) decreased by 1% year-on-year to PLN 414.3 million, which is related to the last year’s termination of a co-investment with Hoist. – We expect to see a further increase in recoveries due to BEST Group in 2024, both due to the growing efficiency of our organisation and the increase in the portfolio of claims under our management, adds Marek Kucner.

BEST Capital Group: rising EBITDA and successful bond issues

The exchange traded group generated PLN 54.8 million worth of cash EBITDA in the third quarter of this year, up by 39 per cent year-on-year. Repayments from BEST’s managed portfolios in the previous quarter amounted to PLN 98.8 million, up from PLN 101.4 million a year earlier. BEST Group is intensifying its efforts on the claim portfolio market and hopes to complete a number of high value transactions later this year, using, among other things, money raised from the bond issue.

The Group’s EBITDA in the three quarters of 2023 was PLN 172.5 million, up 9% on the same period in 2022. Debt repayments from January to September 2023 amounted to PLN 321.6 million, up from PLN 319.2 million a year earlier. The Group’s net profit for the 9 months of this year amounted to PLN 50.8 million, compared to PLN 132.4 million a year earlier. This year’s lower net profit was dictated by the result on the revaluation of the managed portfolios (PLN 28.1 million in the nine months of 2023, compared to PLN 112.5 million a year earlier).

BEST Group ended the third quarter of 2023 with PLN 502 million in net debt, compared to PLN 411 million at the end of 2022. The increase in net debt is due to, among other things, the shareholders of the BEST III NFIZW fund managed by the Group deciding to terminate their joint investment and settling the Group's purchase of half of the claim portfolios managed by BEST III.

In H2 2023, the Group issued corporate bonds with a nominal value of PLN 158 million (including PLN 50 million in Q3 this year), the highest since H1 2017. Krzysztof Borusowski, President of the Management Board of BEST S.A., has emphasised that the funds entrusted to the company by investors, together with the moneys raised by the Group, will be used to finance the purchase of claim portfolios. – In the last few years, BEST Group has seen investments in improving the organisation, increasing process efficiency, with the aim to prepare for a major expansion of our business and the income to be generated by the Group. Among many other things, thanks to the trust shown to us by our investors, we now have the financial strength to achieve the Group’s strategic goals, remarks Krzysztof Borusowski, President of the Management Board of BEST S.A.

In the 9 months of 2023, BEST Group invested PLN 35 million in claim portfolios, acquiring portfolios with a nominal value of PLN 260.2 million. – We can reveal that in the fourth quarter we have already made several high-value investments, increasing the value of portfolios under our management, says Marek Kucner, Vice-President of BEST S.A.

Institutional investors to take up BEST S.A.’s bonds.

BEST S.A. will issue 70,000 Series AA1 bonds worth PLN 70 million. This is the first bond issue in 6 years by this GPW-listed company aimed at institutional investors.

The issue will be undertaken as part of a two-year bond issue programme established in May this year with a total nominal value of up to PLN 300 million. The coupon on the series AA1 bonds will be paid quarterly, and the bonds mature on 21 November 2026. They will be listed on the Catalyst market.
The bond issue is arranged by Bank Pekao SA, ING Bank Śląski SA and PKO BP SA.

In 2023, BEST S.A. raised over PLN 80 million from public bond issues. In total since 2010, BEST Capital Group has issued bonds worth PLN 1.2 billion, of which PLN 1.04 billion has been redeemed to date.

- We have a long and successful history of working with leading institutional bond investors. However, the last issues were carried out several years ago. I believe that the AA1 issue will mark a successful resumption of a new phase of this cooperation, which will be as successful as previously. The Group’s efficient operating model, impeccable debt service track record and historically low debt levels make us an attractive partner for this group of investors, notes Krzysztof Borusowski, President of BEST S.A.

BEST S.A. raises PLN 19 million from bond issue

As part of BEST S.A.’s series Z5 bond offering, investors placed subscriptions worth PLN 19 million. In total, in the three public offerings of BEST bonds conducted in the last three months, investors put nearly PLN 70 million into the listed company’s corporate debt.

The variable-coupon interest rate on the series Z5 bonds is based on WIBOR 3M plus a margin of 5.0%. The bonds’ coupon will be paid quarterly and the bonds will be redeemed on 18 July 2028.

A total of 509 investors subscribed to BEST’s offer. The value of the average subscription for an investor was over PLN 37,000.

- We are encouraged by many retail investors putting their trust in BEST S.A. Public corporate debt issues are an essential part of diversifying the funding sources for our business and will certainly remain so in the years to come. We are preparing to launch another bond issue programme aimed at retail investors to return to the bond market in spring 2024 with a new attractive offer, comments Krzysztof Borusowski, President of BEST.

BEST Group actively participates in the corporate bond market, and has to date issued securities with a total nominal value of more than PLN 1.1 billion, of which PLN 1.04 billion has already been redeemed. At present, 9 series of BEST S.A.'s bonds with a total nominal value of PLN 136 million are listed on the Catalyst market.

Stable recoveries from portfolios managed by BEST Group

The GPW-listed debt management company ended the third quarter of this year with PLN 98.6 million in repayments from the managed portfolios, up from PLN 101.4 million a year earlier. In the 9-month period, recoveries from the portfolios increased to PLN 321.4 million.

The recoveries achieved attributable to BEST Group in Q3 increased slightly to PLN 90.3 million, compared to PLN 90.2 million in Q3 2022. The amount of recoveries due to BEST Group from the managed portfolios for the 9 months of this year increased by 3% year-on-year to PLN 291.9 million.
From the beginning of January to the end of September this year, the Group purchased claim portfolios with a nominal value of PLN 260.2 million, allocating PLN 35.4 million for this purpose. – We hope to make a number of investments in portfolios of considerable value in the last quarter of this year. We have already secured moneys to finance these transactions. Our priority is to expand our business, says Marek Kucner, Vice-President of BEST.

BEST launches another public bond issue

A leading debt management company will offer PLN 50 million worth of bonds to investors. Subscriptions for BEST S.A.'s bonds will be accepted from 3 to 16 October this year. They will carry an interest rate based on WIBOR 3M, plus a margin of 5%; in the first interest period, it may be 10.79%*, and the issue price of the bonds will depend on the subscription date.

BEST S.A. is offering investors 500,000 series Z5 bonds with a nominal value of PLN 100 each. The coupon on the bonds will be paid quarterly, and the bonds will be redeemed on 18 July 2028. They will be listed on the Catalyst market.

The issue price of the bonds for subscriptions placed between 3 and 6 October will be PLN 99.40. For subscriptions made between 7 and 10 October, the price was set at PLN 99.70, and for subscriptions made between 11 and 16 October, it was PLN 100.00.

– BEST S.A.’s Z3 and Z4 series bond offerings in the third quarter of this year received strong interest from investors, which resulted in a reduction of subscriptions. Because of this and the imminent expiry of the prospectus, we have decided to increase the value of the Z5 bond offering to PLN 50 million. We assume that this will enable investors to take up the expected number of bonds of the new issue, says Krzysztof Borusowski, President of BEST.

Subscriptions for series Z5 bonds will be accepted by Dom Maklerski Banku Ochrony Środowiska, Dom Maklerski Banku BPS, Ipopema Securities, Michael / Ström Dom Maklerski and Noble Securities.

The Series Z5 bond offering is part of a public bond issue programme with an aggregate nominal value of up to PLN 250 million carried out by BEST under a base prospectus approved by the Polish Financial Supervision Authority on 4 November 2022, including any supplements and update notices, and the final terms and conditions of the series Z5 issue.

 

Timeline of the public offering of BEST S.A. bonds.

Subscription opening date

3 October 2023

Subscription closing date:

16 October 2023

Allotment date | Interest accrual commencement date

18 October 2023

Expected issue date

31 October 2023

Expected first quotation date

7 November 2023

 

*An example interest rate calculation with the WIBOR 3M rate as of 22 September 2023 of 5.79%, plus a margin of 5.00 percentage points per annum. The actual interest rate on series Z5 bonds in the first interest period will be determined according to the base rate WIBOR 3M as of 10 October 2023 ,plus a margin of 5 percentage points, as specified in the Final Terms of the issue of series Z5 bonds. In the following interest periods, the base rate, and thus the interest rate on the series Z5 bond, may be higher, lower or remain unchanged.

BEST takes over part of claims from a large portfolio

A 100% owned subsidiary fund of BEST SA becomes the owner of a total of 163,472 claims with a nominal value of PLN 2.08 billion. Concluding agreements is part of a joint investment with the company’s Swedish partner.

BEST III Niestandaryzowany Sekurytyzacyjny Fundusz Inwestycyjny Zamknięty in Gdynia (BEST III NSFIZ), in which BEST SA indirectly holds 50 percent of investment certificates, sold claim portfolios. Some of them were acquired by BEST I Niestandaryzowany Sekurytyzacyjny Fundusz Inwestycyjny Zamknięty in Gdynia. As a result, the fund, which is 100% controlled by BEST SA, acquired rights (subject to the condition precedent consisting in payment of the price) to a total of 163,472 claims with a total nominal value of PLN 2.08 billion.


– The transaction price was established according to market terms. The conclusion of the agreement is part of the completion of a joint investment with our Swedish partner after 11 years, says Krzysztof Borusowski, President of the Management Board of BEST S.A.


In April 2012, BEST SA, BEST Towarzystwo Funduszy Inwestycyjnych and the Stockholm-based Hoist Kredit Aktiebolag concluded an investment agreement. Based on the agreement, mutual relations resulting from the joint investment in BEST III NSFIZ and matters related to entrusting BEST SA the management of the securitized claims of BEST III NSFIZ were established.

BEST Capital Group: high repayments, stable EBITDA

The listed group generated PLN 69.5 million worth of cash EBITDA in the second quarter of this year, up by 11 per cent year-on-year. Repayments from the managed portfolios of BEST in the last quarter amounted to PLN 121.2 million, compared to PLN 113.7 million in Q2 2022. The Group’s net debt to equity ratio at the end of June 2023 decreased to 0.54, which is the lowest level in nearly a decade.

The Group’s EBITDA for the first half of the year was PLN 117.7 million (PLN 119.4 million a year earlier). Claim repayments in H1 2023 increased by 2 per cent year-on-year to PLN 222.8 million. The Group’s net result in the first half of the year was PLN 27.2 million, compared to PLN 135.8 million a year earlier. The latter amount, however, included PLN 112.4 million on account of the revaluation of portfolios.

The BEST started the second half of 2023 with PLN 391 million of net debt, compared to PLN 411 million at the end of 2022. The net debt-to-equity ratio at the end of June decreased to 0.54, which is the lowest in nearly a decade.

- In 2023, BEST Group is seeing increasing portfolio repayments and a stable income generated despite the challenging economic conditions. The balance sheet has allowed us to significantly upscale our operations, which we will want to achieve in both the Polish and Italian markets, commented Krzysztof Borusowski, President of the Management Board of BEST S.A.

In the first half of 2023, BEST Group invested PLN 35 million in claim portfolios. The value of portfolios managed by Group at the end of June this year was PLN 1.17 billion (PLN 1.18 billion at the end of December 2022). The President of the listed company emphasises that BEST Group plans to increase its investment on the claim portfolio market. – BEST Group’s operational goal for the coming years remains a significant upscaling of our business, allowing us to better leverage the potential of our organisation. In the next few years, we are expecting to see a significant growth of the European debt market. We want to use this time to rescale our Group’s business and strengthen its market position, added Borusowski.

***

Information on BEST S.A.

BEST Capital Group is one of the largest debt collection companies in Poland, and it invests actively in non-performing claim portfolios using securitisation funds. BEST S.A. has been listed at the Warsaw Stock Exchange (GPW) since 1997.

BEST S.A., as a member and co-founder of the Association of Financial Companies in Poland, and a co-founder and moderator of the Good Debt Collection Practice actively contributes to the development and shaping of the claims market in Poland.

For more information, visit www.best.com.pl or contact us:

Success of the BEST S.A. bond offering

As part of BEST S.A.’s PLN 30 million 4.5-year series Z4 bond offering, investors placed subscriptions totalling PLN 37.6 million. The reduction rate was 20.55%. BEST S.A.’s bonds will be first traded on the Catalyst market in September this year.

The variable-coupon interest rate on the series Z4 bonds is based on WIBOR 3M plus a margin of 5.0%. The bonds’ coupon will be paid quarterly and the bonds will be redeemed on 25 February 2028.

The subscription for the bonds took place from 8 to 23 August this year. A total of 765 investors subscribed to BEST’s offer. The series Z4 offering was BEST’s second bond offering in the third quarter of this year. During the Z3 bond offering ended a month ago, worth PLN 20 million, the reduction in subscriptions was nearly 40%.

- We would like to thank our investors for their trust and investing in BEST’s bonds during the usually somewhat more challenging summer holiday season. We plan to use the money raised from the bond issue in its entirety to finance the purchase of claim portfolios, comments Krzysztof Borusowski, President of the Management Board of BEST.

BEST Group actively participates in the corporate bond market, and has to date issued securities with a total nominal value of more than PLN 1.15 billion, of which PLN 1.04 billion has already been redeemed. At present, 8 series of BEST S.A.'s bonds with a total nominal value of PLN 106 million are listed on the Catalyst market. The current net debt to equity ratio is 0.59, among the lowest in the industry.

The series Z4 bond offering was part of a public bond issue programme with a total nominal value of up to PLN 250 million carried out by BEST under a base prospectus approved by the Polish Financial Supervision Authority on 4 November 2022. Marek Kucner, Vice-President of BEST, responsible for the Group’s finances, has not ruled out that the Company will decide to proceed with another bond issue under the prospectus, which expires in November.

BEST launches a public bond issue

A leading company in the debt management industry will offer investors 4.5-year bonds worth PLN 30 million. Their interest rate, based on the WIBOR 3M rate increased by 5% margin, may reach 11.72%* in the first interest period. Subscriptions for BEST S.A. bonds will be accepted from 8 to 23 August this year, and the issue price of the bonds will depend on the date of subscription.

BEST S.A. offers to investors 300,000 Z4 series bonds with a par value of PLN 100 each. The bond coupons will be paid quarterly and their redemption will take place on 25 February 2028. Bonds will be listed on the Catalyst market.

The issue price of the bonds for subscriptions made on 8-11 August will be PLN 99.40. For subscriptions made from 12 to 15 August, the price has been set at PLN 99.70, and on 16-23 August at PLN 100.00.

– In response to high investor interest in BEST series Z3 bonds, which offer ended with a 39% reduction in subscriptions, we decided to return to the bond market immediately and increase the value of the offer by half. We hope that the attractive terms of the issue, combined with the numerous business assets of the BEST Group, will lead to high investor interest.

  – says Krzysztof Borusowski, President of BEST.

Subscriptions for Z4 series bonds are accepted from 8 to 23 August 2023 by Dom Maklerski Banku Ochrony Środowiska, Dom Maklerski Banku BPS, Ipopema Securities, Michael / Ström Dom Maklerski and Noble Securities.

Z4 series bonds offering is part of the public programme for the bond issue with a total par value of PLN 250 million, which is carried out by BEST based on the base prospectus approved by the Polish Financial Supervision Authority on 4 November 2022 together with any supplements and update notices, and the final terms and conditions of the series Z4 issue.

Schedule for the public offering of BEST S.A. bonds

Subscription opening date

8 August 2023

Subscription closing date:

23 August 2023

Allotment date | Interest accrual commencement date

25 August 2023

Expected issue date

11 September 2023

Expected first quotation date

18 September 2023

*Calculated at WIBOR 3M of 6.72% as of 27 July 2023. The actual interest rate on Z4 series bonds in the first interest period will be determined according to the base rate WIBOR 3M as of 17 August 2023 , plus a margin of 5 percentage points, as specified in the Final Terms of the issue of Z4 series bonds.

***

About BEST S.A.

The BEST Corporate Group is one of the largest debt collection companies in Poland, and it invests actively in non-performing claims portfolios using securitisation funds. BEST S.A. has been listed at the Warsaw Stock Exchange (GPW) since 1997.

BEST, as a member and co-founder of the Association of Financial Companies in Poland, and a co-founder and moderator of the Good Debt Collection Practice actively contributes to the development and shaping of the claims market in Poland.

In 2022, repayments from the managed debt portfolios due to the BEST CG reached nearly PLN 420 million, operating revenues amounted to PLN 454 million and adjusted cash EBITDA amounted to PLN 200 million.

For more information, visit www.best.com.pl or contact us:

Błażej Dowgielski

MakMedia Group

Tel.: +692 823 744

e-mail: b.dowgielski@makmedia.pl

Michał Makarczyk

MakMedia Group

Tel.: +602 280 858

e-mail: m.makarczyk@makmedia.pl

This advertisement is published in connection with the public offering of Z4 series bonds (“Bonds”) issued by BEST S.A. (“Issuer”) as part of the Issuer’s issue programme. In connection with the Programme, the Issuer has drawn up a base prospectus, which was approved by the Polish Financial Supervision Authority (“PFSA”) on 4 November 2022, further supplemented by a supplement approved by the PFSA on 20 April 2023 (“Prospectus”). The approval of the Prospectus by the Polish Financial Supervision Authority should not be understood as support for the Bonds. Investing in the Bonds offered based on the Prospectus involves a number of risks inherent in debt securities and associated with the Issuer’s business. These risks are described in the “Risk factors” section of the Prospectus. It is recommended that potential buyers of the Bonds first read the Prospectus, together with any supplements and updates, and the final terms and conditions of the Bonds (Final Terms and Conditions) before making an investment decision, so that they fully understand any potential risks and benefits of investing in the Bonds. The prospectus has been published on the Issuer's website at www.best.com.pl/prospekt, and the Final Terms have been published on the Issuer's website at www.best.com.pl/warunki-emisji. In addition, for information purposes, the Prospectus and the Final Terms have been published on the website of Dom Maklerski Banku Ochrony Środowiska S.A. at https://bossa.pl/oferta/rynek-pierwotny/emisje/best-sa-seria-z4. The Prospectus and the Final Terms are the only binding documents concerning the offer of Bonds.

This advertisement is intended to be disseminated, directly or indirectly, in the territory of or to the United States of America, or any other countries where the public dissemination of the information contained herein may be subject to restrictions or may be prohibited by law.

Investing in bonds involves the risk of losing some or all of the invested money.

BEST S.A. allocated bonds worth PLN 20 million. The reduction amounted to 39%.

In the offer of 4.5-year series Z3 bonds of BEST S.A. with a value of PLN 20 million, investors placed subscriptions with a total value of PLN 32.7 million. The BEST S.A. bonds will be traded on the Catalyst market in August this year.

The bonds were subscribed between 11 and 21 July this year; 627 investors placed subscriptions in BEST's offer.

‘We are satisfied with the issue, as always when demand exceeds supply. We treat the investors' interest in the offer as an expression of confidence in the company and our development strategy. We also regard the bond issue as a desirable element of diversification of our debt structure. We intend to use the funds raised from the issue to finance the purchase of debt portfolios’, comments Krzysztof Borusowski, President of BEST. Marek Kucner, vice-president of the company emphasises that BEST intends to remain active on the bond market and does not rule out carrying out another issue later this quarter.

The interest rate on the Series Z3 floating-rate bonds is determined based on the WIBOR3M rate plus a margin of 5.0 per cent. The bond coupons shall be paid quarterly and their redemption shall take place on 25 January 2028.

The BEST Group is an active participant in the corporate bond market – it has so far issued securities with a total nominal value of over PLN 1.1 billion, of which PLN 1.04 billion has already been redeemed. Currently, seven series of BEST S.A. bonds with a total nominal value of nearly PLN 86 million are listed on the Catalyst market. The current net debt to equity ratio is 0.59 and is one of the lowest in the industry.

 

***

 

About BEST S.A.

The BEST Corporate Group is one of the largest debt collection companies in Poland, and it invests actively in non-performing claims portfolios using securitisation funds. BEST S.A. has been listed at the Warsaw Stock Exchange (GPW) since 1997.

BEST, as a member and co-founder of the Association of Financial Companies in Poland, and a co-founder and moderator of the Good Debt Collection Practice actively contributes to the development and shaping of the claims market in Poland.

In 2022, repayments from the managed claim portfolios due to BEST Group reached nearly 372 MPLN, operating revenues amounted to over 453 MPLN and adjusted cash EBITDA exceeded 200 MPLN. The carrying amount of the managed claim portfolios was over 1.2 BPLN by the end of 2022.

BEST S.A. launches share buyback

The WSE-listed claim management company is inviting shareholders to submit offers to sell shares in the company. BEST S.A. will acquire a maximum of 151,515 shares (0.68% of the total number of shares) at a price of PLN 33.00 per share. Share offers will be accepted from 24-31 July, with an expected purchase date of 4 August.

Dom Maklerski Banku Ochrony Środowiska S.A. is the intermediary in the share acquisition and its settlement. Offers for the sale of shares may be placed both through investment companies maintaining shareholders' securities accounts, directly at DM BOŚ customer service points, and in electronic form, with a qualified electronic signature. Detailed information on the buyback will be published on the Company's website and on the website of DM BOŚ, at https://bossa.pl/oferta/rynek-pierwotny/skup-akcji/2023.

In accordance with the established procedure, the so-called small shareholder protection, at least one share will be acquired from each BEST shareholder who submits a sale offer. Where the number of shares offered for sale exceeds the number of shares to be purchased, subscriptions will be reduced.

“Being a stable listed company with a market presence of almost 30 years, once again in our history we invite our shareholders to make offers for the sale of shares. We want to share our profit with them, and I would like to note that we have closed Q2 of this year with the highest quarterly level of repayments from managed portfolios in the history of the BEST Capital Group,” comments Krzysztof Borusowski, President of BEST.

BEST Capital Group – high recoveries from managed portfolios

The WSE-listed debt management company ended the second quarter of this year with PLN 121.1 million in repayments from managed portfolios, up from PLN 113.7 a year earlier. This is the highest quarterly level of repayments from managed portfolios in the Group's history.

The value of recoveries achieved attributable to the BEST Group increased in Q2 this year, to PLN 110.2 million, up from PLN 100.7 million in Q2 2022 (9%). In the first half of this year, the value of repayments from portfolios managed by the Group amounted to PLN 222.3 million (PLN 217.7 million a year earlier), of which PLN 201.2 million was due to the BEST Group (PLN 192.8 million a year earlier). In the past six months the Group purchased claims portfolios with a nominal value of PLN 255.7 million, allocating PLN 34.7 million for the purpose.

Krzysztof Borusowski, president of BEST, emphasises that the increase in repayments from managed portfolios was influenced by the Group's growing operational efficiency, the launch of new products and investments in the purchase of claims made in recent years. – Improving debt collection processes and strategies is currently one of our biggest priorities. The increase in operational efficiency allows us on the one hand to increase recoveries from the portfolios we manage and on the other hand to effectively unlock the potential from newly acquired claims. We are satisfied with the effects of the changes within the organisation to date and intend to continue making significant investments in this area as part of the Group's technological transformation – says Krzysztof Borusowski.

Meanwhile, Marek Kucner, Vice President of the company, emphasises that the BEST Group's purpose for 2023 and beyond is to increase the scale of its business. – We are working on diversifying the sources and increasing the scale of external financing, which will be crucial for the implementation of our plans. We hope that the return to a broader partnership with the group of individual investors who invest capital in BEST S.A. corporate bonds will again become one of the pillars of growth – adds Marek Kucner.

***

About BEST S.A.

The BEST Corporate Group is one of the largest debt collection companies in Poland, and it invests actively in non-performing claims portfolios using securitisation funds. BEST S.A. has been listed at the Warsaw Stock Exchange (GPW) since 1997.

BEST, as a member and co-founder of the Association of Financial Companies in Poland, and a co-founder and moderator of the Good Debt Collection Practice actively contributes to the development and shaping of the claims market in Poland.

In 2022, repayments from the managed claim portfolios due to BEST Group reached nearly 372 MPLN, operating revenues amounted to over 453 MPLN and adjusted cash EBITDA exceeded 200 MPLN. The carrying amount of the managed claim portfolios was over 1.2 BPLN by the end of 2022.

BEST launches a public bond issue

A leading company in the debt management industry will offer investors 4,5-year bonds worth PLN 20 million. Their interest rate, based on the WIBOR 3M rate increased by 5% margin, may reach 11.9%* in the first interest period. Subscriptions for BEST S.A. bonds will be accepted from 11 to 21 July this year, and the issue price of the bonds will depend on the date of subscription.

BEST S.A. offers to investors 200,000 Z3 series bonds with a par value of PLN 100 each. The bond coupons will be paid quarterly and their redemption will take place on 25 January 2028. The bonds will be listed on the Catalyst market.

The issue price of the bonds for subscriptions made on 11–14 July will be PLN 99.40. For subscriptions made from 15 to 18 July, the price has been set at PLN 99.70, and on 19–21 July at PLN 100.00.

“We are returning to the bond market with a market-adapted proposition that is attractive to investors. We believe that, in combination with the BEST Group's assets, such as an effective business model, low debt, high credibility associated with more than 20 years of experience on the market and exemplary debt service, the Z3 bond offer will be of interest to investors,” comments Krzysztof Borusowski, CEO of BEST.

Subscriptions for Z3 series bonds are accepted from 11 to 21 July this year by Dom Maklerski Banku Ochrony Środowiska, Dom Maklerski Banku BPS, Ipopema Securities, Michael / Ström Dom Maklerski and Noble Securities.

Z3 series bonds offering is part of the public programme for the bond issue with a total par value of PLN 250 million, which is carried out by BEST based on the base prospectus approved by the Polish Financial Supervision Authority on 4 November 2022.

Schedule for the public offering of BEST S.A. bonds

Subscription opening date

11 July 2023

Subscription closing date:

21 July 2023

Allotment date | Interest accrual commencement date

25 July 2023

Expected issue date

10 August 2023

Expected first quotation date

17 August 2023

*Calculated at WIBOR 3M of 6.9% as of 6 July 2023. The actual interest rate on Z3 series bonds in the first interest period will be determined according to the WIBOR 3M base rate as of 17 July 2023, plus a margin of 5 percentage points, as specified in the Final Terms of the issue of Z3 series bonds.

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This advertisement is published in connection with the public offering of Z3 series bonds (“Bonds”) issued by BEST S.A. (“Issuer”) as part of the Issuer’s issue programme. In connection with the Programme, the Issuer has drawn up a base prospectus, which was approved by the Polish Financial Supervision Authority (“PFSA”) on 4 November 2022 (“Prospectus”). The approval of the Prospectus by the PFSA should not be understood as support for the Bonds. Investing in the Bonds offered based on the Prospectus involves a number of risks inherent in debt securities and associated with the Issuer’s business. These risks are described in the “Risk factors” section of the Prospectus. It is recommended that potential buyers of the Bonds first read the Prospectus and the final terms and conditions of the Bonds (Final Terms and Conditions) before making an investment decision, so that they fully understand any potential risks and benefits of investing in the Bonds. The prospectus has been published on the Issuer's website at www.best.com.pl/prospekt, and the Final Terms have been published on the Issuer's website at www.best.com.pl/warunki-emisji. In addition, for information purposes, the Prospectus and the Final Terms have been published on the website of Dom Maklerski Banku Ochrony Środowiska S.A. at https://bossa.pl/oferta/rynek-pórotny/emisje/best-saZ3. The Prospectus and the Final Terms are the only binding documents concerning the offer of Bonds.

This advertisement is intended to be disseminated, directly or indirectly, in the territory of or to the United States of America, or any other countries where the public dissemination of the information contained herein may be subject to restrictions or may be prohibited by law. Investing in bonds involves the risk of losing some or all of the invested money.

BEST: New bond issue program

BEST S.A., a debt management company listed on the Warsaw Stock Exchange established a bond issue program worth up to 300 MPLN. The organisation of the program was commissioned by BEST from PKO Bank Polski SA, Bank Pekao S.A., and ING Bank Śląski S.A.

Since 2010, the growth of the BEST Group has been funded by issue of bonds. To this day, we have issued bonds with a total nominal value 1.13 BPLN, 1.04 BPLN of which has already been redeemed. The share of bonds in the financing structure of the BEST Group has been significantly reduced in the recent year in favour of funding from the banking sector; however, we remain interested in extending cooperation with bond buyers. The financial, business and organisational standing of BEST is very good, as shown by all the key financial indicators. We are ready to consistently pursue the Group’s growth strategy and significantly increase the scale of operations by leveraging diversified external funding,” says Krzysztof Borusowski, President of BEST.

In 2022, the BEST Group recognised 453.6 MPLN of revenue, 34% more than a year earlier. The net profit attributable to the Company’s shareholders for 2022 amounted to 142.3 MPLN, up from 49.3 MPLN in 2021. The record claims repayments reduced the debt ratios to their lowest levels in nearly a decade, with the net debt to equity ratio at less than 0.59 today.

 

The BEST CG – stable revenues and claims repayments

The GPW listed claims management company recognized PLN 84.3 million in revenue in the first quarter of 2023, compared to PLN 82.5 million a year earlier. Repayments from managed debt portfolios once again exceeded PLN 100 million, reaching almost PLN 102 million in the last quarter (PLN 104 million in Q1 2022). The Group’s cash EBITDA amounted to PLN 48 million, compared to PLN 57 million a year earlier, which was influenced by macroeconomic factors.

The BEST Group ended the quarter with nearly PLN 15 million of net profit attributable to BEST shareholders, compared to PLN 24 million last year. The lower net result was due to 84% higher costs of servicing the Group’s interest debt and a significant increase in the minimum wage.

The Debt Collection Group ended the first quarter with one of the lowest debt levels over the last decade. The Group’s net debt amounted to PLN 413.4 million and its ratio to equity decreased to 0.59. The BEST Group entered the second quarter of the year with almost PLN 60 million in the account. Further strengthening of the Group’s balance sheet is due to continued attractive positive cash flows from operating activities. They amounted to almost PLN 16 million, with PLN 28 million spent on the purchase of new debt portfolios. The total positive cash flow of the Group in the past period was PLN 7.5 million.

“Despite the difficult economic conditions, significantly affecting the wealth of creditors on the one hand, and the costs of our operations on the other, in the first quarter of this year we achieved a solid financial result. We expect that 2023 will be challenging, but ultimately successful and satisfying for all stakeholders of our Group,” comments Krzysztof Borusowski, President of the Management Board of BEST S.A.

The president of the listed company emphasizes that in 2023, the BEST CG plans to at least maintain the last year’s level of investments in debt portfolios. “We are seeing a revival on the transaction market. Thanks to efficient organization and a strong balance sheet, we can think about taking advantage of business opportunities and significantly increasing the scale of our operations, both on the Polish market and abroad. Parallel to investing in portfolios in 2023, we want to invest in the technological development of the company, increasing the cost effectiveness of our operations. We expect that our current activities will build the foundation for a dynamic growth of our results in the coming years,” adds Krzysztof Borusowski.

BEST Capital Group – stable repayments and new investments

The WSE-listed debt management company recorded PLN 101.6 million in repayments from its managed portfolios in Q1 this year, up from PLN 103.9 million a year earlier. In the last quarter, the Group invested PLN 28.3 million in claims portfolios with a total nominal value of PLN 232.8 million.

The value of debt recovered attributable to the BEST Group in Q1 amounted to PLN 91.4 million, compared to PLN 92.0 million in Q1 2022. Insignificantly lower repayment levels can be contributed to the investment cycle.

The years 20182020 were a period of reduced investment (totalling PLN 122 million). This was linked to the collapse of the bond market after the GetBack scandal and the subsequent pandemic. In view of the expected difficulties in raising capital at that time, the Group assumed a policy of accumulating cash and reducing investments in order to secure the upcoming 2020–2022 bond repayments. We opted for the safety of our investors, at the expense of a reduced growth rate. As of now, the bonds are repaid and the BEST Group has returned to the investment market with new portfolios. This will translate again into increased repayments in the future notes Krzysztof Borusowski, CEO of BEST.

The BEST Group intends to remain an active player in the debt portfolio market in 2023, building up scale growth in the following years. “We have the potential to at least maintain our portfolio investment scale this year at the average level of 20212022. We enter 2023 with the lowest debt ratios in nearly a decade and significantly increased credit lines. Our focus is invariably on selective purchases, allowing us to generate attractive returns on capital even in a higher interest rate environment,” adds Marek Kucner, VP of BEST.

 

Record revenues and portfolio repayments for BEST Capital Group

In 2022, the WSE-listed debt management company reported revenue of PLN 453.6 million,
marking a 34% increase on the previous year. The net profit attributable to the Company's shareholders for 2022 amounted to PLN 142.3 million, up from PLN 49.3 million in 2021. Record claims repayments resulted in debt ratios falling to their lowest levels in nearly a decade.

BEST Group ended the year with nearly PLN 420 million in repayments from managed portfolios, up from just under PLN 400m a year earlier. It is the highest result in the Group's history, despite very low debt portfolio investments in 2018-2020. The Cash EBITDA for 2022 was a solid PLN 200 million, compared to PLN 219 million a year earlier. This is a result of both the increasing operating costs of the Group due to macroeconomic factors, as well as the life cycle of portfolios managed by BEST Capital Group.

In 2022, BEST Group redeemed bonds worth PLN 146 million, issuing new debt securities with a nominal value of PLN 45 million during the same period. The Group's financing is secured by available credit limits in partner banks, which were increased to PLN 400 million in 2022, compared to the available PLN 250 million in the previous year. Throughout the year, the company spent nearly PLN 132 million on purchasing debt portfolios with a total nominal value of PLN 522 million. The bulk of last year's investments were financed from the profits generated in 2022. As a result, the Group's net interest-bearing debt increased very slightly last year, reaching PLN 411 million at the end of December 2022, up from PLN 395 million in 2021. Meanwhile, the net debt-to-equity ratio decreased by nearly 17% over the period, down to 0.6 at the end of the year.

Thanks to solid cash flows, last year BEST was able to simultaneously invest in its development and share profits with shareholders. In 2022, the Company carried out a share buyback, acquiring 357 thousand shares of BEST S.A., allocating PLN 10 million for this purpose.

- 2022 was a demanding year for us all. Despite a number of challenges, topped by double-digit inflation and the high cost of money, we concluded the year with satisfactory results. We move into the next year in good shape. A strong balance sheet makes us an attractive partner for financial institutions
and gives us great comfort in pursuing our strategic development plans. We are actively working to reduce our operating costs. We expect the next few years to bring an increase in the role of our sector for the Polish and EU economies, as underlined by the NPL Directive. Our aim is to take advantage of these opportunities to significantly increase the scale of operations and strengthen the market position of BEST Capital Group –
says Krzysztof Borusowski, President of the Management Board of BEST S.A.

The Company's President emphasises that the macroeconomic situation, including rising labour costs and fixed costs that affected the Company's profitability in 2022, is the basis for implementing changes in the BEST Group. – As we prepare to significantly increase the scale of our operations, we are substantially increasing our IT and process automation investments. The next stage of our company's digital transformation is expected to enable us to grow dynamically without the need to expand our team, and increase our efficiency and flexibility in operations – says Maciej Bardan, Member of the Management Board of BEST S.A.

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Information on BEST S.A.

BEST Capital Group is one of the largest debt collection companies in Poland, and it invests actively in non-performing claims portfolios using securitisation funds. BEST S.A. has been listed at the Warsaw Stock Exchange (GPW) since 1997.

BEST, as a member and co-founder of the Association of Financial Companies in Poland, and a co-founder and moderator of the Good Debt Collection Practice actively contributes to the development and shaping of the claims market in Poland.

For more information, visit www.best.com.pl or contact us:

Błażej Dowgielski

MakMedia Group

Tel.: +692 823 744

e-mail: b.dowgielski@makmedia.pl

Michał Makarczyk

MakMedia Group

Tel.: +602 280 858

e-mail: m.makarczyk@makmedia.pl