KRUK Group

INVESTOR RELATIONS
KRUK GROUP

KRUK GROUP

KRUK S.A. is a leader of the debt management market. Over nearly two decades, we have grown from a small firm employing less than 20 staff into a global financial group, specialising broadly in debt management. Currently, the KRUK Group comprises a number of companies offering a comprehensive range of modern integrated services, which we are ready to tailor to the needs and expectations of our partners in order to recover payments owed to them.

On a mass scale, KRUK pursues a strategy focused on amicable settlements with its clients, i.e. debtors, spreading repayment of their debt over manageable instalments. Supported through media campaigns, the strategy aims to convince debtors to start talking with KRUK about repayment terms.

The Group’s core business is the management of debt purchased for the Group’s own account or outsourced for collection by other institutions. The Group manages debt in three segments:

consumer debt (unsecured),
mortgage-backed debt,
corporate debt.

The KRUK Group manages receivables of banks, loan brokers, insurers, leasing companies, landline and mobile telecommunications operators, cable TV operators, digital TV operators, and companies from the FMCG sector, but it focuses on the banking market, where it relies on long-term relations with its key accounts.

The Group’s presence in both the purchased debt and outsourced credit management segments provides it with an important competitive advantage based on operational synergies, and helps mitigate the risk related to debt portfolio purchases thanks to additional statistics from the credit management business.

The debt management business is supported by the Group’s law firm Kancelaria Prawna RAVEN and by ERIF BIG S.A., a credit reference bureau. The Group is also developing the Novum loan service, offered to clients who previously repaid their debts towards the Group.

In 2007, the Group launched its operations on the Romanian market, and in 2011 − on the Czech and Slovak markets. KRUK Deutschland was established in 2014 and a year later KRUK bought its first debt portfolios in Germany. Also in 2015, two more companies were established − in Italy and Spain. KRUK acquired its first debt portfolio on the Italian market still in 2015, and on the Spanish market − early in 2016.

At the end of 2019, all the KRUK Group companies employed over 3 thousand staff, which means the Group’s headcount more than trebled relative to 2007. On May 10th 2011, KRUK S.A. shares were floated at the Warsaw Stock Exchange and the share price was set at a level of below PLN 40.

KRUK Group’s strategy

SHAREHOLDING

KRUK SA shareholding at November 25th 2021

Shareholder	Number of Shares	Share in the share capital (%)	Share of the total vote (%)
Shareholder Piotr Krupa	Number of Shares 1 787 463,00	Share in the share capital (%) 9,54	Share of the total vote (%) 9,54
Shareholder Other Board members	Number of Shares 139 020,00	Share in the share capital (%) 0,73	Share of the total vote (%) 0,73
Shareholder Nationale-Nederlanden PTE	Number of Shares 2 802 261,00	Share in the share capital (%) 14,74	Share of the total vote (%) 14,74
Shareholder Aviva OFE*	Number of Shares 1 726 000,00	Share in the share capital (%) 9,08	Share of the total vote (%) 9,08
Shareholder PZU OFE*	Number of Shares 1 650 000,00	Share in the share capital (%) 8,68	Share of the total vote (%) 8,68
Shareholder Allianz OFE	Number of Shares 1 007 672,00	Share in the share capital (%) 5,30	Share of the total vote (%) 5,30
Shareholder Aegon OFE	Number of Shares 959 254,00	Share in the share capital (%) 5,05	Share of the total vote (%) 5,05
Shareholder Others	Number of Shares 8 941 228,00	Share in the share capital (%) 47,03	Share of the total vote (%) 47,03

(*) Data based on the list of shareholders holding at least 5% of votes at the KRUK S.A. AGM.

SEE CHART

MISSION AND VISION

MISSION

We safeguard compliance with social and legal norms requiring that everyone must fulfil their obligations, always being respectful to people.

VISION

Values - We live our values in all we do.

People - We want to attract people who share our values and believe that the need for progress never ceases, even if we succeed.

Lean - We believe in striving to continually improve the efficiency of our processes. We are not afraid to pin down a problem and look for the best solutions.

VALUES

RESPECT
COOPERATION
ACCOUNTABILITY
DEVELOPMENT
SIMPLICITY

RESPECT

Mutual respect is the cornerstone of our business. We treat everyone the way we want to be treated.

COOPERATION

•Together we can do more. We build relationships based on partnership and clear rules. We call a spade a spade.

ACCOUNTABILITY

Everyone is responsible for their decisions, actions or inaction and their consequences.

DEVELOPMENT

• We are committed to continuous improvement. We have an incessant inner drive to progress, even when we succeed.

SIMPLICITY

Simple is beautiful. We simplify our processes and eliminate waste. Getting things done is more important than striving for perfection.

MILESTONES

ASSOCIATIONS

Bundesverband Deutscher Inkasso-Unternehmen
Bundesverband Credit Management
Bundesvereinigung Kreditankauf und Servicing
Conference of Financial Companies in Poland
ACA International
Asociatia de Management al Creantelor Comerciale
Asociace inkasních agentur
Asociácia slovenských inkasných spoločností

Bundesverband Deutscher Inkasso-Unternehmen

(Germany, since 2015)

BDIU is a leader and trustworthy representative of the receivables management industry. It promotes responsible dealings between members of the association, creditors and indebted people. The association is a mediator between the receivables management market and the state, representing and growing the industry.

Bundesverband Credit Management

(Germany, since 2015)

BvCM is an association that provides tools for receivables management processes and which minimize losses incurred in connection with non-payment. Members of the association contribute to the development of a pricing policy based on value, and they act to improve working capital.

Bundesvereinigung Kreditankauf und Servicing

(Germany, since 2015)

Bundesvereinigung Kreditankauf und Servicing (BKS) association is a federation of German companies operating in the market of so Sub- or Non-Performing Loans, on the site of the creditors. The association was founded in 2007, in Berlin, and represents 25 member companies operating in the area of credit claims management. Politically, the association takes an active part in the trade of the receivables. BKS association is listed in the public register of associations and their representatives.

Conference of Financial Companies in Poland

(Poland, since 2004)

The Conference of Financial Enterprises in Poland was created on 27th October 1999. It was founded by a group of the largest companies in the financial intermediation sector in Poland. The initiative of financial firms arose as an answer to the need of regulating the dynamically developing market of consumer credits. It was decided that the best for of representation for these firms is an employers' union. Since 2003, KPF has invited to co-operation new parties offering additional services for the financial sector—including debt collecting agencies. More about the company on www.kpf.pl

ACA International

(USA, since 2007)

The Association of Credit and Collection Professionals is the largest association of debt collecting agencies in the world (with several thousand members at the moment of writing). The organisation serves mostly as a platform to exchange experiences in the receivables management market. Moreover, it ensures that the internal code of ethics and legal standards in the field of debt collecting are observed. More about the company on www.kpf.pl

Asociatia de Management al Creantelor Comerciale

(Romania, since 2009)

The purpose of the organisation is to implement and promote good standards in accounts receivable management. Furthermore, AMCC’s mission is to change the image of the ARM industry and to conduct educational activities about the problem of debt in business.

Asociace inkasních agentur

(Czech Republic, since 2014)

Among the members of the Association of Debt Collection Companies AIA are Czech companies operating in the ARM market. Through our membership in AIA we want to promote initiatives aimed at building a positive image of the ARM industry and to reinforce the bargaining position of member companies during negotiation and drafting of legislative amendments.

Asociácia slovenských inkasných spoločností

(Slovakia, since 2015)

ASINS is an association in Slovakia established for the purpose of promoting a positive image of receivables management enterprises. Its objective is to represent and protect the interests of its members and also to ensure compliance with legal regulations and stringent ethical principles.

CODE OF THE BEST PRACTICES OF COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE

Following adoption by the WSE Supervisory Board of the Code of Best Practice for WSE Listed Companies 2016 (Resolution No. 26/1413/2015 of October 13th 2015), the KRUK S.A. Management Board adopted, by way of Resolution No. 1/2016, a relevant statement of compliance with the Code. The statement, specifying the extent to which the Company intends to comply with the standards, is available on KRUK S.A.’s website, in the Corporate documents section (below).

Until December 31st 2015, the Management Board of KRUK S.A., the Company and its governing bodies had observed the corporate governance standards defined in the Code of Best Practice for WSE Listed Companies (consolidated text in Appendix to WSE Supervisory Board Resolution No. 19/1307/2012 of November 21st 2012).

In compliance with the principle formulated in Section I.Z.1.11. of the Code of Best Practice for WSE Listed Companies 2016 (Part I. Disclosure Policy, Investor Communications), KRUK S.A. informs that, in accordance with Art. 14.2.17 of the Articles of Association of KRUK S.A. and Section 51.2.17 of the Rules of Procedure for the Supervisory Board of KRUK S.A., selection of an auditor to audit the Company’s full-year financial statements, referred to in Art. 395 of the Polish Commercial Companies Code, in accordance with the Polish and international accounting standards, is the responsibility of the Supervisory Board. Furthermore, the Company must comply with the principles defined in generally applicable laws, pursuant to which:

The lead auditor performing audits and reviews of the Company’s and the Group’s financial statements must be changed at least once every five financial years.
The lead auditor performing audits and reviews of the Company’s and the Group’s financial statements may again provide such services after the lapse of two financial years.