SERVICES CREDITS INSURANCE CARDS TECHNOLOGY
Annual Report 2011
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Annual Report 2011 2 3 4 5 6 7 8 9 0 2 24h/24
Profile
p. 4
Editorials
p. 6
Governance
p. 8
Key facts and history
p. 10
Key numbers
p. 12
Partnerships
p. 15
Innovations
p. 18
Compliance
p. 20
Risk management
p. 21
Our values
p. 22
Sustainable development
p. 23
financial reports
p. 24
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Profil The specialist in consumer credit
No.1 in credit at the Point of Sale in Belgium and the Grand Duchy of Luxembourg
We offer a range of products and services: > Credit cards (now also deferred debit cards and prepaid cards). > Auto loans. > Technical and operational partner in the management of consumer credit on behalf of third parties. > Broker for loans and insurance.
The commercial vision We are there at the side of our partners and clients to: > Offer optimal financing solutions while prioritising the ability of our clients to repay loans. > Offer personalised attention to each case in our portfolio, thus ensuring a service which is even better performing. > Innovate by launching new products which further facilitate the «act of purchase». > Serve the clients of our partners to whom we make available our platform.
Reliability Providing financing solutions at the point of sale requires a reliable information system which has been developed and is maintained by expert teams. This is the challenge which our teams meet successfully on a daily basis.
Leadership Already the leader in financing at the point of sale in Belgium and the Grand Duchy of Luxembourg, Buy Way plans to make use of its exceptional expertise and become a European-level actor in consumer credit at the point of sale.
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Credit cards – Deferred debit cards – Prepaid cards – Auto loans –Technical and operational partner – Broker for loans and insurance
BUY WAY PERSONAL FINANCE > Annual report 2011
Legal flow Chart
Apax Partners Wallet 100 %
EEIG Buy Way Services
Buy Way Personal finance 100 %
Buy Way Tech
KBC Consumer finance
fimaser
BNP Paribas Personal finance Nederland
Entities Buy Way Personal finance
Buy Way Tech
A company incorporated under Belgian law which is owned by Wallet and approved as a « lender » in the field of consummer credit. A filing as « payment establishment » has been made with the supervisory authorities.
A company 100% owned by Buy Way Personal Finance which possesses the technology used by members of the EEIG, particularly the license for the SICLID software platform.
EEIG Buy Way Services A European Economic Interest Group whose members use the technology and knowhow of Buy Way Tech. The EEIG comprises the following members: • Buy Way Personal Finance • BNP Paribas Personal Finance (Nederland) • KBC Consumer Finance • FIMASER (a Joint Venture between the Carrefour Group and the BNP Paribas Personal Finance Group) The operating costs of the EEIG are shared among its members according to an allocation table agreed by common agreement. Management of the EEIG is provided by Damien Guermonprez, CEO of Buy Way Personal finance.
Apax Partners: a committed shareholder at our side Buy Way Personal Finance is 100% owned by Wallet, a holding company whose principal shareholders are the funds APAX France VII (50.5%) and the company Altamir Amboise (38.3%) which is quoted on the Paris Stock Exchange.
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2 EDITORIALS
Message from the Chairman: The 2011 operating profit of €10.8M has just validated the 2010 profit of €5.4M. In 2010 Buy Way Personal Finance reached the critical size needed to cover management costs which are always very high in the domain of consumer credit, but opportunely it was able to share them with three other partners in an EEIG of resources. As one can confirm from other facts, this progress was made under excellent conditions of risk, with the rules of credit approval adjusted to an economic crisis which goes back to the end of 2007. In this way, the financial results confirm the robustness of our business model notwithstanding a still fragile economic environment and this encourages us to continue our strategy for growth. This is how we have increased the diversification of our revenues while marketing our knowhow through a subsidiary created for this purpose: Buy Way Tech. In 2011, this subsidiary signed an assistance contract with KBC Consumer Finance along with the sale of the part owned by Buy Way in this subsidiary of KBC Bank. It also receives revenues from IT licenses granted to members of the IT EEIG (BNP Paribas Nederland, Fimaser, KBC CF, Buy Way PF). Meanwhile, the marketing and sales of insurance products via client files and the contribution of the revenue from auto loans to a subsidiary of the ING Group have made it possible to strongly grow the receipts from commissions while reducing little by little the outstanding debt on long depreciable loans and risk exposure. The consequence of this policy of diversification of our resources, net income, grew by 13% to €43M versus €38M the previous year.
Damien Guermonprez - Christian Guiraud This change in our business model makes it possible to promote the skills which have made Buy Way such a success in consumer credit. In the end, I have seen the managerial staff and teams of Buy Way acquire experience which is unique in Belgium and which allows our company to grow despite the economic and financial difficulties of our time. Whereas most actors in the credit sphere have a hard time dealing with the rising risks, Buy Way has improved its performance. I can add to this professionalism a strong team spirit which has made it possible during this period to take and quickly execute management decisions which the times have required. As a result, Buy Way has closed the financial year stronger and more robust than when it began. We warmly thank all our employees for this achievement. Christian Guiraud CHAIRMAN
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BUY WAY PERSONAL FINANCE > Annual Report 2011
message from the CEO: Buy Way is a new independent brand on the consumer credit market which capitalises on the knowhow of a company which was well launched some twenty years ago within the sector of distribution. Our mission is to develop human and responsible credit which is accessible to the greatest number of people at our partners’ sale points. To achieve this, we want not only to contribute to the success of our partner store chains and dealerships but also to arrange for our clients to have a longlasting positive experience. This means creating purchasing power while making certain that our clients will be able to meet the deadlines for paying off their loans and will be very satisfied with our services. Our methods of granting credit are the result of a lot of practical work and are suited to protecting our clients, as we see from our excellent figures pertaining to risk. As regards the quality of service, we succeed in reaching our objective every time our clients become the ambassadors of our brand. The results of this policy have materialised: in 2011 we grew our net income by 13% to €43M thanks to the development of our various products (commissions, fees, technical assistance, IT licenses). Consequently, the share of financial margins this year only represents 65% of the net income of Buy Way versus 78% in 2010. General expenses grew by 7% to €25.1M but were under control and the operating ratio was taken down from 61% to 58% of net income. Our Cost of Risk of €7.2M has declined for the fourth year in a row. The risk cost thus came in at 17% of net income while maintaining reserves greater than 80% of doubtful outstanding debt.
Next, our net profit from operations has doubled and comes to €10.8M. This demonstrates the robustness of our economic model in a period of crisis. Finally, Buy Way also puts its expertise to work for partners in the world of banking via the EEIG Buy Way Services, which has seen its activity grow by 12% in 2011. In 2012, our new company Vision will confirm our leadership through innovation. Buy Way is presently reconstructing its new IT tool «front» in order to make it more competitive for us, but above all for our partners among stores and automobile dealerships. Buy Way is also strengthening its presence in new distribution channels in order to act as a financial services hub and be ready to serve more clients with a maximum of efficiency. I invite you to look over our second annual report, which illustrates the year 2011 and our areas of growth. Enjoy your reading! Damien Guermonprez CEO
«We want to contribute to the success of our partner store chains and auto dealerships, but also to give our clients a positive experience in a relationship of long-term trust. » Damien Guermonprez CEO
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3 GoVErNANcE CEO
Damien Guermonprez
Executive Secretary
Jérôme Vallée
Head of Sales & marketing
Hugues Lucet
Business Applications
Risk Assessment & Direct Granting
Direct Sales & Marketing
Financial Planning
Global Infrastructure
Scoring & Expert Systems
Retail
Accounting
ICT Security
Credit Collection & Litigation
Automotive
Head of ICT Lionel Blart
Lionel Blart
Head of ICT
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Internal Audit
Head of Risks
Jérôme Vallée
Head of Risks
CfO
Ugo Setti
Ugo Setti
Head of Sales & Marketing
Damien Guermonprez CEO
Hugues Lucet CFO
BUY WAY PERSONAL FINANCE > Annual Report 2011
Head of Administration Chantal Brabander
Head of Compliance & Indebtedness
Human Ressources
Compliance
Project Management
Indebtedness
Legal
Fraud
Thierry Genard
Facility Management
Board of Directors Buy Way Personal finance: Christian GUIRAUD, Chairman monique COHEN, Administrator Guillaume COUSSERAN, Administrator Jacques CAmPAGNE-IBARCQ, Administrator Chantal Brabander
Head of Administration
Thierry Genard
Head of Compliance & Indebtedness
Apax Partners, represented by: Julien GAUTHIER, Administrator Damien GUERmONPREZ, CEO
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4 Key facts AND HISTORY Key structural facts
Consumer Finance
Sale of our participation and continuation of the partnership In 2011 Buy Way sold its 40% participation in KBC Consumer Finance (ex KBC Pinto Systems). The existing collaboration between Buy Way and KBC Consumer Finance within the EEIG has been extended and a new agreement was signed between the two parties.
Buy Way: the brand with knowhow In October 2010, BNP Paribas Personal Finance Belgium turned an important page in its history and called upon Buy Way Personal Finance. We thus became an independent actor on the consumer credit market in Belgium and the Grand Duchy of Luxembourg. In 2011, Cetelem and the Aurora network in turn moved aside to make room for our new brand: BUY WAY. A new inspiration and, from day to day, tremendous prospects!
Creation of Buy Way Tech A service company created in April 2011, Buy Way Tech makes available:
• I ts technology for the benefit of the EEIG and its members.
• I ts technical expertise for the benefit of its partners.
Today all the Buy Way teams are based at Boulevard Anspach, in the centre of Brussels. In April 2012, we comprise a team of 250 professionals who are passionate about their various skills.
A HISTORY OF PERMANENT CHANGE 1988
• Creation of Fimaser, a 40/60 Joint Venture between the Cetelem Group and GB-Inno-BM. • Promotion of credit.
1996
•S et-up of Cetelem Belgium, a 60/40Joint Venture between the Cetelem Group and the GIB Group.
2000
• The Cetelem Group takes 100% of the shares of Cetelem Belgium and enters the Luxembourg market. • Cetelem Belgium signs an agreement with the KBC Group to make available to the KBC entities Centea and CBC the technology of revolving credit cards.
2005
• I nternet channel.
2006
•A uto loans.
2007
• Brokerage channel.
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BUY WAY personal finance > Annual Report 2011
Noteworthy facts about our activities Distribution:
Direct Activities:
• 27% growth in client recruitment thanks in particular to our partner Makro.
• 46% increase in activity in 2011.
• Signing and launch of new agreements with the store chains Galeria Inno and Fit for fun.
• Successful launch of the prepaid card. • New Smartphone channel.
• Exclusive partnership with the Photo Hall and Hifi International store chains.
• Monthly statements in colour.
Auto Loans:
Brokerage in loans and insurance:
• Successful partnership with Record Bank.
• Signing of numerous partnerships with lenders and insurance companies.
• Renewal of exclusive agreement with KIA.
2008
• New cards co-branded with VISA and MasterCard. • Acquisition of UCBEL, a specialist in mortgage loans. Cetelem Belgium is renamed BNP Paribas Personal Finance Belgium. • In December, put up for sale BNP Paribas Personal Finance Belgium following a decision of the European Commission responding to the purchase of Fortis by BNP Paribas.
• Successful campaign launched with Genworth.
2009
• Merger with Fidexis, which was initially owned 51% by Dexia and 49% by the French company Laser Cofinoga.
2010 • Purchase by the investment fund Apax Partners and transfer of the mortgage activity to Fortis.
2011
2012
•N ame change to • Smartphone channel. Buy Way Personal • Brokerage activity. Finance and Buy Way Services. Replacement of the Cetelem brand by Buy Way.
• Sale of the 40% share in KBC Consumer Finance. •P repaid card. �11
5 KEY NUMBERS buy way personal finance Production (€ M.)
Consumer credit area (IFRS Data)
Credit Cards – New financing Net Banking Income (€ M.) 38
43
2010
2011
Net tax before profit (€ M.) 10.8 5.4 2010
Equity (€ M.)
2011
Capital adequacy ratio (%) 111.4
2007 2008
12.1 %
18.9 %
268
2009
239
2010
224
2011
243
Consumer Loans - Direct & Broker 2007 2008
76.8
252
60 32
2009
19
2010
21
2011 4 2010
2011
2010
2011 Consumer Loans - Retail
Amount of credits granted (€ M.) 336 333
2010
Cost of Risk (% of outstanding debt)
2007 2008 2009
2011
2010
1.9%
1.6%
2010
2011
44 35 26 23
2011 22
Consumer Loans - Automobile Number of clients 516 381 552 536
Number of active clients 251 797 263 379
2010
2011
Number of employees (full time) 216
2010 � 12
220
2011
2010
2007
62
2008
60
2009
63
2010
68
2011
64
2011 > TOTAL production 2007
419
2008
396
2009
347
2010
336
2011 333
BUY WAY personal finance > Annual report 2011
Outstanding debt (€ M.) Credit Cards – Outstanding 2007
236
2008
250
2009
236
2010
234
2011 253
Consumer Loans - Direct & Broker 2007
117
2008
100
2009
New cards
86
2010
2008
74
68 869
2009
2011 52
53 455
2010
40 962
2011 Consumer Loans - Retail 2007
32
2008
30
2009
26
2010
25
51 899
New loans 2008
2011 24
31 812
2009
25 391
2010
22 825
2011
19 118
Cards + Loans Consumer Loans - Automobile 2007
72
2008
2009
78 846 63 787
2011
135
2010 2011
100 681
2010
107
2009
2008
71 017
155 111
164*
> TOTAL OUTSTANDING 2007
458
2008
488
2009
485
2010
488
2011
440
493*
* Of which 52.7 discounted.
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5 KEY NUMBERS OF THE EEIG BUY WAY SERVICES Number of cases processed 2008
660 333
2009
771 410
2010
1 017 242
2011
1 139 835
Total annual cost (€ M.) 2008
11.8
2009
12.4
2010
12.4
2011 13.5
Annual cost per case (€) 2008
17.9
2009 2010
16.1 12.2
2011 11.8
Other key numbers Social statistics: > 250 employees on the payroll, equivalent to 220 full-time employees. > Men: 45%. > Women: 55%. > Average age: 30 years old. > 13 nationalities. > Absenteeism rate: 4.84%. Volume of client communications in 2011: > 1 million calls handled. > 3 million letters sent and received. > 4.5 million emails sent and processed. � 14
BUY WAY PERSONAL FINANCE > Annual Report 2011
6 PArTNErSHiPS With major store chains and independents As an active and committed partner, Buy Way supports chain stores and independent distributors and makes available to them the tools which allow them to achieve two essential objectives: to increase their sales turnover and enhance their relationship with their clients. > To increase the turnover of the partners by: - Increasing the frequency of visits to points of sale. - Significantly enlarging the average purchase.
> To enhance their relationship with their clients thanks to: - A relationship with clients which begins at the point of sale. - Solutions adapted to their needs. - A long-term relationship supported by permanent communications.
Cards
Instalment loans
www.hifi.lu IL Y A TOUJOURS UN MAGASIN HIFI INTERNATIONAL PRES DE CHEZ VOUS
10 YEARS OF STRONG AND FRUITFUL COLLABORATION BETWEEN MAKRO AND BUY WAY WHICH DEMONSTRATES THE IMPORTANCE OF OUR PRODUCTS AND SERVICES FOR MODERN DISTRIBUTION.
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6 PArTNErSHiPS (coNTiNUED) Distribution sector
Sector of financial services
Buy Way aims to continue to take market share in its two historic markets, Belgium and the Grand Duchy of Luxembourg.
As independent actor, Buy Way is in a unique position which allows it to forge innovative partnerships with other actors of the financial sector.
Buy Way has implemented a partnership with Galeria Inno after having won a call for bids in 2010. We have also signed with the chain Fit For Fun, which has 16 centres.
BANKS
In February 2012, Photo Hall decided to extend and to strengthen its partnership with Buy Way by entrusting us with exclusivity.
� KBC Consumer finance is a member of the EEIG and enjoys the use of the Buy Way Services platform.
Consumer Finance
� fimaser, a Joint Venture between the bank of the Carrefour Group and the BNP Paribas Personal Finance Group, enjoys the use of this same platform. � Record Bank, an agreement on refinancing the auto loan activity and partnership with our brokerage activity. INSURERS AND BROKERS � Cardif, De Limburgse, Wall’assur, Record, ZA, Afi Esca, Genworth, Krefima: Via this new channel, Buy Way has positioned itself as a broker and offers its clients tailor-made solutions.
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BUY WAY PERSONAL FINANCE > Annual Report 2011
Sector of automobile dealerships Thanks to its status as independent actor, Buy Way has also been able to carve out for itself an important place in the sector of auto loans and financing recreational vehicles with the KIA brand as the partner of reference. Victory of KIA BUY WAY in the BTCS 2011 touring cars championship. For a first time experience as sponsor of a sporting event, this was a total success. The Kia Buy Way was at the top of the championship nearly from start to finish of the competition, thereby upending the official so-called factory teams. The Kia Pro Ceed was piloted by Philippe Stéveny and Didier de Radiguès, who marked here his return to auto competitions. Buy Way stands alongside its dealership partners, whether in their showrooms or on the track.
« We are constantly looking for «the» solution which will best meet the needs of our clients at this time. Whether this has to do with credit cards, personal loans, auto loans or insurance, Buy Way is committed to finding a response to the requests of its clients. That’s in our DNA.» Ugo Setti Head of Sales & marketing � 17
7 iNNoVATioNS With respect to innovations, Buy Way focuses a large part of its attention and its energy on 4 new areas: the internet and smartphone channels, prepaid cards and monthly statements.
Internet channel
Smartphone channel
In 2011, Buy Way completely revisited its internet site and reworked its Homebanking having in mind the main objective of providing greater convenience to its clients. Web shopping has moved farthest ahead for clients supplied with co-branded MasterCards. This card makes it possible to buy on line with a 0% Effective Annual Overall Rate credit.
At the start of 2012, Buy Way launched an application dedicated to managing one’s credit card from a smartphone. This allows the user to see his available balance or an online payment to his account and to request an increase in his credit line.
«Buy Way is not only a financial actor; it is above all a company which knows how to identify opportunities and to transform them into commercial and corporate success. Innovations and developments must be designed and implemented so as to be useful to the company, its partners and clients.» Lionel Blart Head of ICT
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BUY WAY PERSONAL FINANCE > Annual Report 2011
Prepaid cards
New monthly statement
A pioneer and precursor of the prepaid card in Belgium and in the Grand Duchy of Luxembourg, Buy Way launched a prepaid card linked to a credit card in 2011. This launch was recognised and hailed by professionals in the sector who nominated it for the «2011 Trophy of Innovative Cards» in the category «International – Prepaid Cards». The card is used like a MasterCard because it has all the functionalities: payments, cash withdrawals, purchases at points of sale and on the internet. It is also available in a «plastic» version and a virtual version for online operations. With full security and discretion because it bears no name.
How can we improve the information intended for our clientele and at the same time engender a new line of commercial growth? This is the equation that Buy Way solved by developing together with Speos, a subsidiary of bpost, a new monthly statement which is ultrapersonalised and in colour. Here we see a real opportunity to satisfy our clients by offering them a better structured monthly statement which is clearer and more transparent, while sending messages about opportunities directly linked to their profile. The first quantitative and qualitative results prove it: these new monthly statements are both a real «plus» for our clients and a true lever of profitability for us.
Based on this success, in 2012 Buy Way launched a new prepaid card which is not built onto a credit card. It is available online and from a wide network of distributors in Belgium. It will also have all the functionalities of a MasterCard.
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8 coMPliANcE Processes and procedures are the guarantors of the quality of our customer service. But they also assure the proper functioning of a company as complex and high performance as Buy Way. Three control bodies co-exist within our organisation, each having a clearly defined role and limits.
Compliance Monitoring compliance is an independent, impartial and objective function. Its role, its domains of competence, as well as its principles of governance are set out in the Charter of Compliance: > Combat money laundering and the financing of terrorism. > Integrity in relations with clients throughout our activities. > Protection of data and business secrets. > Preventing conflicts of interest. > Independence of the auditors. > Whistleblowing. > Any other domain assigned by the Management Committee or the Board of Directors.
The tasks
Internal audit Internal audit is an independent and objective activity which has the mission of giving Buy Way insurance on its success in managing its risks while watching out for its high performance character and the effective application of the system of internal controls by formulating, as necessary, recommendations aimed at improving effectiveness and being attentive to the constant changes in all the entities of the company. A charter of audit sets out the fundamental principles which govern the function of internal audit, describing its objectives, its role, its responsibilities and its modalities of operation. The strategy, the level of requirements and the operating rules of the internal audit are determined by the Management Committee in a framework approved by the Committee of Audit, Risks and Compliance.
External controls Verification of the company’s financial situation and of its annual accounts is entrusted to an auditor which is proposed by the Administrative Board and is appointed for a maximum period of three years by the General Meeting of Shareholders. The function of legal audit of the accounts of Buy Way is performed by Mazars Réviseurs d’Entreprises SCRL, a company represented by Mr. Dirk STRAGIER.
> To analyse legislative and regulatory developments in order to anticipate and evaluate possible consequences for the activities in collaboration with the legal department. > To identify, analyse and measure the risks of non-compliance and risk to reputation which might result from present and future activities and financial products or from any change in the company’s area of activity. > To help build skills in the framework of developing and putting in place procedures for maintaining compliance and other documents. > To see to it that obligations with respect to compliance are being respected, while in particular taking into account the risks incurred. > To communicate to the financial regulators or to any other competent authority every suspicious incident or transaction to the extent required by local regulations. > To be the first interlocutor of the regulators.
«Processes and procedures insure the quality of our customer service» Thierry Genard Head of Compliance & Indebtedness
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BUY WAY PERSONAL FINANCE >Annual Report 2011
9 riSK MANAGEMENT Buy Way is a responsible and committed actor of consumer credit. That is why enhanced vigilance with respect to over-indebtedness and in-depth analysis of the client’s situation constitute the expertise enabling us to better direct our activities. This allows us to increase the satisfaction level of clients, but also to avoid having to spend too much effort with claims or collections. The 2011 Cost of Risk at Buy Way is expressed in IFRS at €7.2M and shows constant decline compared to preceding years: > A 22% drop compared to 2010.
The excellent shape of risk has made it possible to maintain growth of the company’s profits. This is an expression of the specific and sustainable knowhow at Buy Way.
> A 40% drop compared to 2009.
Risk is under control and amounts to 1.6% of indebtedness. This reduction of exposure to risk is explained by: > Revised and improved systems of scoring, granting credits and collection.
Over-indebtedness and money laundering are the principal risks for Buy Way. The fight against over-indebtedness also represents a commitment by the company to differentiate itself from its European competitors by demonstrating, with the numbers at hand, that granting credit is done in a responsible fashion. In fact, Buy Way has one of the lowest levels of Cost of Risk in the profession in Europe.
> A net diminution of the unpaid sums. > An ever more effective chain of collection.
Cost of Risk stated in accordance with IfRS 3,00%
- 40 %
2,50%
in euros
2,00% 1,50% 1,00%
2.8 %
3.2 %
2.5 %
1.9 %
1.6 %
2007
2008
2009
2010
2011
0,50% 0%
«Our low Cost of Risk is the result of our steady determination to practice respectful, ethical and responsible credit.» Jérôme Vallée Head of Risk � 21
oUr VAlUES
AGILITY Our staff has been trained to respond to every question related to credit in an environment which is constantly changing.
RELIABILITY Our ICT (Information & Communication Technology) teams enable Buy Way to offer its commercial partners ultra-high performance and constantly updated tools for financing decisions.
SOLIDARITY At Buy Way we are actively working at improving cohesion between the departments, with the determination to grow all together in the same direction.
SERVICE SPIRIT • Our advisor teams serves our end customers with a 97% rate of response to incoming calls. • Our advisors at partner points of sale are entirely devoted to clients and to our favoured partners.
TRUST We communicate the information necessary to manage credit in a transparent manner (via detailed monthly statements, home banking, email, SMS, vocal server, etc.).
«At Buy Way, we invest in permanent training in order to fully identify the present talents and to attract new ones.»
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Chantal Brabander Head of Administration
BUY WAY PERSONAL FINANCE > Annual Report 2011
SUSTAiNABlE DEVEloPMENT As a responsible company, Buy Way does not hesitate to assume long-term undertakings. These commitments are an integral part of the company’s development. Three areas are prioritised:
Reduce the risks of overindebtedness and combat money laundering. The expertise of a company specialised in the credit domain like Buy Way rests on its ability to extend loans to its clients wisely by evaluating their ability to repay the loan. Our rate of risk is the lowest in the market. This is the result of specific and long-lasting knowhow. It is essential that both the borrower and the lender act responsibly towards one another. Several lines of action: � Towards the client: • Long established expertise evaluating the risks of over-indebtedness. • Systematically looking over the files of the Main Credit Office of the National Bank of Belgium. � Towards the in-house administration: • Monthly measurement of risk by two different departments: Risk and Compliance. • The objectives of our employees are aligned with the objectives of risk management. • Respect for the in-house code of ethics. • Financial vigilance. � Respect for external standards: • Federal Public Service - Economy. • National Bank of Belgium. • Professional Union of Credit Providers. � Code of Ethics and Code of Behaviour: • Put in place a Buy Way Code of Ethics: rules of «good conduct» for individuals and groups, as well as principles and obligations deemed necessary by all the actors so as to act with integrity and loyalty. • Adhesion to the Code of Conduct of the Professional Union of Credit Providers.
discrimination in 2 Combat employment. In a very cosmopolitan city like Brussels, job discrimination constitutes another very important challenge. Buy Way works to achieve diversity in its staff: its 250 e m p l oye e s t o d a y c o m p r i s e 1 3 nationalities. We have also signed the Charter for Diversity for companies. The Head of Administration in charge of Human Resources sees to its application.
of the service rendered to 3 Quality consumers. With respect to customer service, every year with the help of an outside and independent company we measure the way we honour our commitments both towards our B2B partners and the final customers. The company undertakes to communicate and ensure respect for the ten commitments made to the customer: transparency, the right price, services oriented towards the customer, confidentiality, customer satisfaction, management of the credit cycle, data collection, management of credit risk, risk prevention and debt management. On this last point, Buy Way takes as its basic principle to collect claims while listening closely to the customer. We have several types of solutions suited to different problems encountered. The objective is to deal with the outstanding loan as a whole, not just the unpaid part.
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fiNANciAl rEPorTS of BUy wAy PErSoNAl fiNANcE coNSoliDATED NUMBErS Balance Sheet ASSETS
Notes
IfRS in €
Cash and cash equivalent
2011
2010
14 229 567
27 438 885
Customers loan
(1)
396 671 171
440 558 743
Financial assets
(2)
81 495
2 471 495
360 371
363 864
Tangible assets Intangible assets
(3)
20 000 791
20 571 453
Other receivables
(4)
24 387 635
12 271 833
455 741 021
503 676 275
2011
2010
111 471 802
76 854 710
Financial debts
336 072 000
418 172 000
Other payables
8 197 218
8 649 565
455 741 021
503 676 275
LIABILITIES
Notes
IfRS in €
Equity
(1) The portfolio of loans is accounted according to the method of effective rates (IAS 39). (2) The 40% minority interest in KBC Consumer Finance was sold in 2011. (3) Goodwill reported during the merger between Fidexis SA and BNP Paribas Personal Finance Belgium. (4) Incorporates deferred taxes with the assets in the amount of €16.6M, of which €7M for 2011.
Off-balance sheet In October 2010, Buy Way Personal Finance signed with BNP Paribas fortis a confirmed credit of €600M, adjusted to €400M in December 2011 at the initiative of Buy Way, guaranteeing its refinancing over the next few years.
« The good results of 2011 confirm the strategic orientations adopted in 2010: diversification via servicing and intermediation, plus the modification of our product mix towards products with high added value. » Hugues Lucet CfO � 24
BUY WAY personal finance > Annual Report 2011
Profit/Loss Account PROFIT/LOSS ACCOUNT
IFRS in M€
2011
2010
Interest income
38.4
41.4
Interest expenses
-10.5
-11.8
Net financial margin
27.9
29.5
19.1
11.9
Commissions paid
-4.0
-3.4
Net profit
43.0
38.0
General expenses
-25.1
-23.4
Net operating profit
17.9
14.7
Cost of Risk
-7.2
-9.2
10.8
5.4
IFRS in % of outstanding debt
2011
2010
Interest income
8.3%
8.5%
-2.3%
-2.4%
Net financial margin
6.1%
6.1%
Insurance and other revenue
4.1%
2.5%
-0.9%
-0.7%
9.3%
7.8%
-5.4%
-4.8%
Net operating profit
3.9%
3.0%
Cost of Risk
-1.6%
-1.9%
Profit/loss before taxes
2.3%
1.1%
OTHER FINANCIAL RATIOS
2011
2010
General expenses / net income
58%
61%
Risk /net income
17%
24%
Insurance and other revenue
Profit/loss before taxes
PROFIT/LOSS ACCOUNT
Interest expenses
Commissions paid Net income General expenses
The accounts presented here are an abbreviated version of the statutory annual accounts prepared in accordance with the applicable regulations in Belgium. The auditor Mazars réviseurs d’entreprises, represented by Dirk Stragier, has certified the annual accounts of Buy Way Personal Finance unreservedly and they were approved during the General Meeting of Shareholders on 8 May 2012.
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FINANCIAL REPORTS OF buy way pErsonal finance CONSOLIDATED NUMBERS (CONTINUED) Highlights facts of the financial year
2011 results
> Transfer of the 40% participation in KBC Consumer Finance.
The operating profit of Buy Way reached €10.8M in 2011, i.e. the double of profit in 2010. This result confirms the strategic orientations in place in 2011.
> Creation of the 99.9% owned subsidiary BUY WAY Tech. > Revision of the coefficients for the reserve funds following a new study.
> A 13% increase of the NBI:
- Diversification of revenue sources: servicing and intermediation.
Activity
- A modification of the product mix towards higher value added products.
In the course of the financial year 2011, the production of credits came to €332.8 M. 51 899 new credit card accounts were opened in 2011, i.e. an increase of 27% compared to 2010. The outstanding debt on cards as of 31/12/2011 came to €439.8 M, i.e. 10% less than in 2010, due to the implementation of the partnership with Record Bank.
> A 7% rise in general expenses.
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> A 22% diminution of the Cost of Risk.
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