Annual and Sustainability Report 2022/23 - EOS in Romania
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01

Annual and Sustainability Report

Read all about the development of the EOS Group. The section on financial year 2022/23 presents an overview of key figures and business highlights. The section entitled “Our responsibility” explains how the EOS Group meets its social and ecological responsibilities.

Changing finances for the better 

The EOS Group is a leading investor in receivables and real estate portfolios and an expert in processing open receivables. Our more than 6,000 employees in 24 countries practice data-driven receivables management and provide intelligent services for the benefit of our customers, partners and consumers. For more than 45 years, we have secured the cash flow of companies so they can focus on their core business. GRI 2-6

The financial year at a glance

GRI 201-1
Revenue climbed by 21.4 percent to EUR 977.1 million.
 

EUR million 

0
In fiscal 2022/23, EOS Consolidated generated EBITDA of EUR 445.9 million.

EUR million 

445.9
In fiscal 2022/23, investment volume in receivables portfolios was EUR 1.2 billion.

EUR billion

1.2
A total of 6,261 employees contributed to the successful 2022/23 fiscal year.

employees

6,261
The EOS Group is represented in 24 countries.

countries
 

24
02

Our financial year 2022/23

In fiscal 2022/23, the EOS Group increased its earnings and investment volume.
Our financial year 2022/23

Our result is the team’s achievement

The 2022/23 fiscal year was marked by uncertainty as war, inflation and the energy crisis dominated economic and social life. When the fiscal year began, it was not expected that the EOS Group would generate such extraordinary earnings, according to Marwin Ramcke, Chairman of the Board of Directors: “Our employees’ many years of expertise and their commitment made this development possible. We are more than 6,000 individuals with our own experience, abilities and cultural backgrounds. As a team, we can achieve a great deal.” Success is attributed to our focus on the purchase of receivables portfolios and the continuous development of digital tools that have improved our operational performance and promoted synergies between the EOS companies.

Interview with the EOS Board

The five members of the Board of Directors analyze the fiscal year, describe developments in several countries and offer their outlook for 2023/24. GRI 2-9
suit, people, tourist, acquaintance, student

Running business in a humane way

O fotografie-portret îl prezintă pe Cristian Musat, director general la EOS International BVG, cel care a gândit proiectul Kollecto+.

Kollecto+: Software that generates synergies

Flexible working timeFlexible working time 2 min.
How the EOS companies boost efficiency and deepen collaboration with Kollecto+.
Learn more
A photo shows a dilapidated building in Režanci, Croatia. A ‘stranded asset’ that EOS Croatia is putting back on the market.

How EOS is putting stranded assets back on the market

Flexible working timeFlexible working time 2 min.
EOS has acquired expertise in the sustainable renovation of unused buildings with the goal of putting them back on the market.
Learn more

Details on the fiscal year:
Revenue and earnings compared with previous years

Extraordinary growth reported. Compared with the previous fiscal year, EOS Consolidated greatly increased its earnings (EBITDA) and revenue in 2022/23.

Revenue development and earnings

In fiscal 2022/23, earnings and revenue of EOS Consolidated were significantly higher than in the previous year. The two main drivers were numerous investments in receivables portfolios and the outstanding performance in the processing of NPL portfolios purchased in past years. GRI 201-1

Year-on-year revenue

Figures in MEUR





853.1
2019/20
792.5
2020/21
804.9
2021/22
977.1
2022/23

Earnings development (EBITDA)

Figures in MEUR





343.4
2019/20
312.4
2020/21
282.5
2021/22
445.9
2022/23

Consolidated revenue by region 2022/23

Figures in MEUR
Development in the different regions
With a share of 42.4 percent, Eastern Europe remains the strongest performing region of EOS Consolidated. Compared with previous year, the Eastern European companies increased their revenue by nearly 50 percent. The Western European EOS companies generated 31.0 percent of total revenue in fiscal 2022/23. Here, too, revenue climbed significantly over the previous year. The lifting of restrictive pandemic-related measures contributed to the positive result. Germany’s share is 25.9 percent even though the competitive situation remains challenging. Revenue declined slightly, but EOS invested at a high level.
Total
977.1
Eastern Europe
414.1
Western Europe
302.5
Germany
253.0
North America
7.5

EOS News

New and familiar partners, newly established business locations and a clear increase in NPL purchases. Some particularly impressive developments in the past fiscal year:

Portugal

Since July 2022, EOS has been active on the Portuguese market with its own operating company. Luís Chaves was recruited as Managing Director, bringing with him many years of experience in receivables management. “What attracted me was the project,” says Chaves, “and the opportunity to work for a company I had come to know as a trustworthy player in the market.”
 Luís Chaves, Managing Director EOS Financial Solutions Portugal , S.A

France

In France, EOS doubled its investments compared with previous year and made the largest single investment in a secured portfolio in the history of EOS France. “We have achieved this result, thanks to a management team with more than 20 years of experience, our unique knowledge of the stakeholders in the French market and the full support of the entire team in Hamburg. Above all, thanks to the outstanding commitment of all employees to achieving our goals together,” says Nathalie Lameyre, Managing Director of EOS France.
 Nathalie Lameyre, Managing Director EOS France

Bosnia and Herzegovina

EOS Bosnia and Herzegovina reported results for the fiscal year that were as good as those for the EOS Group as a whole: “Bosnia is a very small market, so we were pleased that we could invest at a high level,” says Managing Director Petar Mrkonjić. One highlight, he says, was the co-investment with World Bank subsidiary IFC in the purchase of non-performing secured receivables. “Behind these successes is a mix of young, extremely capable and highly motivated employees and more experienced staff.” 
Petar Mrkonjić, Managing Director EOS Matrix d.o.o.  Bosnia and Herzegovina

Poland

In Poland, many international investors entered the market in the past financial year. “This led to high demand for NPLs and aggressive competition,” says Dariusz Petynka, Managing Director of EOS Poland. “However, thanks to our clearly defined strategy, we were able to increase our investment volume over prior year and further optimize our operating performance with data-driven processes.”
Dariusz Petynka, Managing Director EOS Poland Sp. z o.o.

Denmark

EOS expanded its position on the Danish market. By acquiring several extensive NPL portfolios, EOS more than doubled its receivables volume. “These transactions are a milestone for us and will make a significant contribution toward our growth,” says Peter Hægerstrand Jensen, Managing Director of EOS Denmark.
Peter Haegerstrand Jensen, Managing Director EOS Danmark A/S

United Kingdom

After some restructuring, business for EOS picked up speed in the UK. The company purchased several unsecured receivables portfolios. “This signified yet another crucial step for EOS in establishing itself in the important UK market,” says Anthony Jenks, Managing Director of EOS UK.
Anthony Jenks, Managing Director EOS Solutions UK Plc

Business performance in the 2022/23 fiscal year

  • Revenue by region

    In EUR thousand
    In fiscal 2022/23, revenue of EUR 977.1 million was 21.4 percent higher than in the previous year (EUR 804.9 million). The companies in Eastern Europe recorded the steepest climb with an increase of 47.8 percent, followed by Western Europe with an increase of 34.1 percent. Revenue in Germany declined slightly, but remained high at EUR 253.0 million. The steep decline in revenue in North America is attributed to the divestment of the operating EOS companies at the end of 2021. The revenue generated after the divestment is based on receivables portfolios acquired in previous years which were retained by the EOS Group and processed by the buyer in a fiduciary capacity. GRI 201-1
    2022/23 2021/22 Changes on the previous year in %
    Eastern Europe 414,125 280,148 +47.8
    Western Europe 302,508 225,644 +34.1
    Germany 252,953 274,809 -8.0
    North America 7,525 24,276 -69.0
    EOS Consolidated 977,110 804,877 +21.4
  • Consolidated income statement (summary)

    In EUR thousand
    In fiscal 2022/23, EOS Consolidated generated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in the amount of EUR 445.9 million (previous year: EUR 282.5 million). Compared with the previous year, revenue climbed by 21.4 percent or EUR 172.2 million. The decline in revenue resulting from the sale of the North American companies at the end of the previous year was outweighed by the extraordinarily high level of investments. GRI 201-1
    2022/23 2021/22
    Revenue 977,110 804,877
    Total operating income 991,251 815,215
    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) 445,943 282,453
    Earnings before tax (EBT) 380,072 228,544
    Net income 297,270 201,236
  • Assets situation 

    In EUR thousand
    Total assets for EOS Consolidated increased by 26.9 percent to EUR 3.0 billion compared with the previous year. The rise is attributed to the Group’s higher total investments in receivables and real estate in fiscal 2022/23. Purchased portfolios account for 79.4 percent (previous year: 75.4 percent) and real estate in inventories for 8.7 percent (previous year: 7.8 percent) of total assets. GRI 201-1

    *Financial presentation
    2/28/2023 in % 2/28/2022 in %
    Fixed assets 200,620 6.6 209,498 8.8
    Purchased receivables and real estate in inventories* 2,670,136 88.0 1,989,455 83.2
    Receivables 40,181 1.3 29,949 1.3
    Cash and cash equivalents 66,255 2.2 105,455 4.4
    Other assets 55,608 1.8 56,457 2.4
    Total assets 3,032,800 100 2,390,815 100
  • Equity and financing

    In EUR thousand
    In the past fiscal year, total financing increased by EUR 642.0 million to EUR 3.0 billion compared with previous year. The increase is essentially due to the financing of the high investments made in the past fiscal year.

    The company’s equity increased to EUR 1.1 billion, due in part to retained earnings from the previous year. Despite the high investments made in the past fiscal year, the equity-to-assets ratio declined only slightly to 36.6 percent (previous year: 37.5 percent), which, relatively speaking, constitutes a high level for a financial services provider.

    The EOS Group’s refinancing needs are covered by loans from banks and the parent company. Most of that financing still has short-term maturity. Compared with the previous year, debt financing increased from 74 percent to 84 percent. GRI 201-1

    For accounting reasons, tables and text may contain rounding differences.
    2/28/2023 in % 2/28/2022 in %
    Equity 1,110,654 36.6 895,726 37.5
    Provisions 58,452 1.9 84,218 3.5
    Liabilities with banks 132,387 4.4 92,111 3.9
    Liabilities with related parties and companies 1,482,754 48.9 1,102,833 46.1
    Trade payables 47,247 1.6 41,962 1.8
    Other liabilities 201,306 6.6 173,966 7.3
    Total financing 3,032,800 100 2,390,815 100

Once again, the expertise of EOS in the NPL market paid off in 2022/23. The Group made several investments in large portfolios. Some highlights:

Spain

EOS purchased from Caixabank an NPL portfolio containing non-performing loans with a nominal value of EUR 753 million – one of the largest in the history of EOS Spain.

EUR million 

753

France

In 2022, EOS France concluded the purchase of a secured portfolio of some 4,000 receivables worth EUR 235 million (nominal value) from a leading bank. It was the largest single investment without a co-investor in the history of EOS France and a first in collaboration with the bank.

EUR million 

235

Eastern Europe

With a joint investment fund, EOS and the World Bank subsidiary International Finance Corporation (IFC) strengthened the economy in Croatia, Serbia, Romania, and Bosnia and Herzegovina. Together, IFC and EOS will invest USD 150 million in these countries over the course of three years to purchase non-performing real estate–secured debts and thus help small and medium-sized companies to increase their liquidity.

USD million

150

Germany

EOS Deutschland B2C purchased foreign receivables worth EUR 30 million (nominal value) from a leading major German bank.

EUR million 

30

Greece

After a long time, EOS in Greece was able to make a significant investment in an unsecured portfolio with a nominal value of around EUR 800 million.

EUR million 

800

P​​​​​​​ortugal

In the summer of 2022, just weeks after starting business operations, EOS Portugal purchased two combined portfolios with unsecured loans, among other products, from a leading international bank. The portfolios contained unsecured and secured receivables with a nominal value of more than EUR 144 million.

EUR million

144

Investments in debt purchases and real estate in 2022/23

In EUR million
EOS Consolidated significantly increased its investment volume from EUR 668.6 million to EUR 1.2 billion. The increase related to unsecured and secured debt purchases. In Western Europe, the Group more than quadrupled its investment volume to a total of EUR 612.4 million. The lifting of the pandemic-related restrictions of the previous years had a positive effect on the Western European market. For example, the transaction volume of the selling banks returned to normal. In Eastern Europe, with EUR 392.6 million in investments, EOS continued the previous year’s high investment level, largely thanks to high investments in Greece, Poland, Croatia, and Bosnia. Even though the market in Germany remained challenging with high competitive pressure, EOS doubled its investments compared with the previous year.

For accounting reasons, tables and text may contain rounding differences.
Total
1216.5
Eastern Europe
392.6
Western Europe
612.4
Germany
208.3
Central
3.1

Unsecured

706.5
Eastern Europe
200.5
Western Europe
347.4
Germany
155.5
Central
3.1

Secured / Real estate

510.0
Eastern Europe
192.1
Western Europe
265.0
Germany
52.8

Purchased receivables in 2022/23

In EUR million
The carrying value of the portfolios recognized at the end of the financial year was EUR 2.7 billion. The amount constitutes an increase of 34 percent or some EUR 680 million compared with previous year. The value increase is a result of the EOS Group’s high investments in the 2022/23 fiscal year. While the portfolio of unsecured receivables was still twice as high as the value of secured portfolios and real estate in the previous fiscal year, the ratio between the two evened out in the course of the past fiscal year. The companies in Western Europe recorded the highest portfolio carrying value Group-wide, followed closely by Eastern Europe and Germany. 

For accounting reasons, tables and text may contain rounding differences.
Total
2670.1
Eastern Europe
934.4
Western Europe
1028.2
Germany
640.8
Central
66.8

Unsecured

1660.1
Eastern Europe
500.7
Western Europe
663.9
Germany
428.7
Central
66.8

Secured / Real estate

1010.0
Eastern Europe
433.7
Western Europe
364.2
Germany
212.1
03

Our responsibility

This chapter of our first combined annual and sustainability report shows how we act sustainably and responsibly.
Our responsibility 2022/23

Foreword from our CEO

Day by day, we work to change things for the better. We are successful in business because we embrace change and take responsibility for all we do. We change things for the better for our clients and employees, but also for consumers, our industry, and society.

Sustainability is an integral part of our corporate responsibility (CR). I am especially proud that we have turned our CR strategy into action and have expanded our reporting since the launch in 2020. We took another step in 2022 when we identified key CR topics by conducting a first materiality analysis. This year for the first time, this section of our combined Annual Report and Sustainability Report is based on the standards of the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs). Reporting our activities in the context of these standards and goals makes our contributions even more transparent.

As a financial services provider, we consider sustainability as more than just environmental protection. Our special concerns are divided into four fields of action within our CR strategy. In this section, we explain how we meet the standards in the fields of "Responsible Collection", "Joint Progress", "Environmental Protection" and "Financial Sustainability". These four fields of action also structure this section.

I thank all colleagues who contribute daily to making EOS an economically successful business with a firm commitment to sustainability. Always intent on becoming a little bit better.

Marwin Ramcke, Chairman of the Board of Directors

GRI 2-22

Receivables management means taking responsibility

Our responsibility extends to many different areas. As an international financial services provider, we focus on social responsibility and corporate governance. We want to change things for the better. In working toward our goal, we have defined four fields of action in our corporate responsibility strategy:
icon red collaboration

Responsible Collection

EOS stands for respectful and fair treatment of consumers and for solution-driven, sustained debt relief.
Learn more
icon red networking

Joint Progress

We take on social responsibility within the EOS Group by promoting empowerment, diversity and inclusion, and in society through our education initiatives.
Learn more
icon red charge to claim

Financial Sustainability

EOS advocates strong, binding industry standards and responsibility guidelines. We apply strict criteria when we price portfolio purchases and make other investments.
Learn more
icon red website

Environmental Protection

As a strong part of the Otto Group, EOS supports the Group’s climate protection strategy that pursues the Paris Agreement goal of limiting global warming to 1.5 °C. Together we work on implementing targeted measures.
Learn more

Materiality is the starting point of our sustainability strategy

In collaboration with internal and external experts, EOS further developed its CR strategy and created a materiality matrix in 2022. The matrix below shows the material topics from the EOS corporate perspective (x-axis) and from the viewpoint of our external stakeholders (y-axis). It constitutes the foundation for the future direction of the EOS sustainability strategy.

Materiality matrix

  • In the sustainability section of our combined Annual- and Sustainability Report, we tell our stakeholders about our most important environmental, social and governance activities during fiscal year 2022/23. The report includes the fields of action and the most important topics identified in the first materiality analysis conducted by EOS Holding GmbH with headquarters in Hamburg. The sustainability report covers the entire EOS Group* during the period from 1 March 2022 until 28 February 2023** and refers to the standards of the Global Reporting Initiative (GRI). GRI 2-1, 2-2, 2-3

    *Unless indicated otherwise.
    **Excluding figures from a German subsidiary and HR figures from the French EOS companies.
  • Responsible Collection 

    • Ethical Collections by Treating Customers Fairly
    • Tech-Driven Transformation & Innovation
    Joint Progress 

    • Societal Impact trough Financial Literacy 
    • Diversity, Equality & Inclusion
    • Talent Attraction, Development and Retention 
    • Local Community Engagement & Participation
    • Employee Satisfaction & Well-Being 
    Financial Sustainability 

    • Digital Responsibility & Cyber Security
    • Business Ethics & Safeguard Compliance
    • Responsible Acquisition of Portfolios & Partnerships
    • Strengthening Liquidity of Clients 
    • Trustworthy Stakeholder Relations
    • Industry Leadership & Best Practices 
    Environmental Protection

    • Reduction of Environmental Footprint
    GRI 3-2
  • The definition of our material topics

    To create a framework for our sustainability reporting, we identified the sustainability topics in our first materiality analysis that are most important (i.e., “material”) to EOS. We then compiled a long list of potential key topics from status quo and benchmark analyses and included relevant international reporting standards, rules and guidelines (e.g., GRI, DNK, SDGs, SASB, UNGC, ESRS*). In a workshop with internal and external experts, we narrowed down, summarized and prioritized our material topics. We rated them in terms of relevance for our external stakeholders (y-axis) and for EOS (x-axis). In assessing the material topics for EOS, we considered the inside-out and outside-in perspective, also known as “double materiality”. This is, how industry trends or CR factors affect a company’s decision making and how a company affects society and the environment. This is known as “double materiality”. GRI 2-29, 3-1

    *In putting together the long list, we used the version of the ESRS Standards from April 2022.
  • The EOS Group joined the United Nations Global Compact, the world’s largest pact for corporate responsibility, in 2021. As a member, we pledge our commitment to the compact’s 10 principles on human rights, labor, environment and anti-corruption.

    Each new member first must derive its own goals from the 10 principles. We did so in the past year, identifying our goals from the UN’s 17 Sustainable Development Goals (SDGs) to which we can make the most effective contribution. The SDGs we selected, along with the associated key figures and goals are important benchmarks in our corporate responsibility strategy. As required by the Compact, we will report on our progress once a year in our “Communication on Progress” (COP). GRI 2-23

    We focus on the following SDGs:
    Icon SDG goal 3: good health and well-being Icon SDG goal 3: good health and well-being
    Good Health and Well-Being
    Learn more
    Icon SDG goal 4: quality education Icon SDG goal 4: quality education
    Quality Education
    Learn more
    Icon SDG goal 5: gender equality Icon SDG goal 5: gender equality
    Gender Equality
    Learn more
    Icon SDG goal 8: decent work and economic growth
    Decent Work and Economic Growth
    Learn more
    Icon SDG goal 10: reduces inequalities Icon SDG goal 10: reduces inequalities
    Reduced Inequalities
    Learn more
    Icon SDG goal 13: climate action Icon SDG goal 13: climate action
    Climate Action
    Learn more
    Icon SDG goal 16: peace justice and strong institutions
    Peace, Justice and Strong Institutions
    Learn more
    Icon SDG goal 17: partnerships for the goals Icon SDG goal 17: partnerships for the goals
    Partnership for the Goals
    Learn more
    Parts of individual initiatives and measures contribute to other SDGs as well and will be included in our reports where appropriate.
collaborationcollaboration

Responsible Collection

EOS stands for respectful and fair treatment of consumers and for solution-driven, sustained debt relief. 
Decent work and economic growthDecent work and economic growth Reduce inequalitysReduce inequalitys

Ethical Collections by Treating Customers Fairly

 

EOS stands for fair debt relief for consumers. In keeping with our claim, “Changing finances for the better”, we support defaulting payers become debt-free. We develop fair payment plans that are economically feasible for everyone involved and also find solutions for consumers whose personal circumstances present special challenges. 

Respectful communication is key to our approach. This summer we will roll out an international, Group-wide policy that standardizes our respectful and ethical treatment of defaulting consumers. The policy obliges us to use easy-to-understand language, to speak tactfully and to assume responsibility for our words and actions. 

With technological innovations, we simplify the payment process for consumers. We provide service portals and chatbots that let consumers manage their payments independently, without having to contact us directly. However, consumers who prefer personal contact can turn to our qualified staff members for suitable debt relief options. To further improve the user experience, we offer consumers their personally preferred payment methods suggested by our data analysis. We continuously improve our services on the basis of feedback, which is collected through surveys, for example.  

Fair debt collection in figures

handled successfully by EOS in fiscal 2022/23 helped defaulting consumers.

million and more debt cases

0
already use the EOS Kollecto+ debt collection system. This tool offers consumers a fully digital experience in finding a solution for their debts. Five more countries plan to follow in the near future.

EOS countries

8
more digital contact points were set up Group-wide in fiscal 2022/23 compared to the previous financial year.

percent

38
of defaulting consumers were able to manage their debts independently via online service portals in the reporting period. Twelve smart service portals and three chatbots are available Group-wide to handle their requests around the clock.

percent

61
more payment plans were generated via digital channels in the reporting period compared with the previous financial year.

percent

83
in total are offered by EOS to suit as many consumers as possible. Apple Pay and PayPal are just two of the options.

payment methods

9
gave EOS in Germany feedback in the first two months of the survey that helped the company make long-lasting service improvements.

consumers

1,000

Fair debt collection

EOS advocates dealing with consumers respectfully and uses new technologies in doing so.
 A graphic shows several people communicating with each other through email, conversations, and letters.

Tech-driven Transformation & Innovation

 

Technological progress, an important driver for EOS, prepares us for the future. We use data analyses and artificial intelligence to change the finances of clients and of defaulting consumers for the better. Personalized payment plans and intelligent chatbots help in this process. Our goal is to offer clients and consumers Group-wide a fully digital process tailored to their needs.

In 2022 the Data & Analytics Hub (DAH) reorganized. It bundles the national and international analytics competence of EOS. “In the Data & Analytics Hub, our colleagues link data and AI support to make recommendations or decisions,” says DAH Director Jakob Spitzer. Defaulting consumers benefit, for instance, by being approached in the way best suited to them personally. So that analyses can be made on an even larger scale in the Cloud, the data pipelines that join the Kollecto+ debt collection software to the Hub are being expanded. Learn more about Kollecto+ here.
groupgroup

Joint Progress

We take on social responsibility within the EOS Group by promoting empowerment, diversity and inclusion, and in society through our own education initiatives.
Good health and well beingGood health and well being Quality EducationQuality Education Gender EqualityGender Equality Reduce inequalitysReduce inequalitys

Social Impact through Financial Literacy

 

It is our goal to strengthen financial literacy in society as a way to counteract excessive private debt.

The study “Europeans in Financial Trouble?” EOS Consumer Study 2023 clearly shows that young people between the ages of 18 and 34 would like to receive more financial education and instruction on how to deal with money properly. Nearly one in 10 in this age group is convinced that lack of financial knowledge is one reason people take on new debt.

As a way to teach future generations about finances, the finlit foundation was launched by staff members of the EOS Group in 2019. The non-profit organization shows children and adolescents how to handle money properly and thus helps them to avoid excessive personal debt. ManoMoneta, finlit’s first education initiative, targets children aged 9 to 13, is active now in schools in several European countries. “OhMoney”, a second initiative started recently in Germany is aimed at adolescents between 13 and 17 years of age. The idea is to provide students and their teachers with creative, engaging content on financial topics relevant to their everyday lives and to guide the students on their way to financial independence.

At the same time, e.g. EOS in Romania, Slovenia and Croatia became actively involved in other initiatives for adolescents and adults that include course offerings in schools, teaching videos and participation in the Winter Finance School for teenagers. GRI 413-1
The EOS Group received the German Award for Sustainability Projects for the finlit foundation. In the category "Non-profit initiative", the jury honoured the commitment to preventing private over-indebtedness by teaching financial literacy.
Financial education for children: A schoolgirl looks at her budget.

Our financial education in figures

implemented initiatives for the financial education of children and adults.

GRI 413-1

national subsidiaries of EOS

0
have learned how to handle money with ManoMoneta since 2020.

children

87,000
were reached by finlit through ManoMoneta in the 2022/23 financial year alone.

children

32,828
have used ManoMoneta in their classrooms since its launch.

schools

1,400

Promoting financial competence and avoiding debt

Knowledge gaps in handling money can accelerate the path toward excessive personal debt. That’s why EOS supports financial education initiatives, especially for young people.
Financial literacy: Learning at an early age about how to handle money properly can protect people from excessive debt later on.

Diversity, Equality & Inclusion

 

As an international group, EOS promotes diversity in its ranks. We are pleased, therefore, when employees establish and become actively involved in communities. In the Diversity & Inclusion Board, we have a structural framework for coordinating initiatives and providing strategic direction for diversity.

We think it is important to convey knowledge about diversity and inclusion. In April 2023 we launched “Breaking Down Barriers & Unconscious Biases: A learning path on Diversity & Inclusion” for the EOS Group on the Masterplan online platform. It contains videos to teach employees the significance of diversity and inclusion in the workplace and to help them develop strategies for an integrative, welcoming and successful work environment. The course is open to all employees and is compulsory for managers and HR staff. Workshops will be added to the online offering shortly.

More inclusion through the Transidentity Guide

The community Queer@EOS has published a Transidentity Guide in collaboration with Otto’s queer network MORE*. It offers support to employees during and after their transition. For example, trans colleagues can change their name within the EOS group with little effort. The guide serves as a source of information for colleagues and managers looking for answers to trans gender-related questions.

Gender equality at EOS

of all employees at EOS are female. (Note: Gender as indicated by employees)

GRI 2-7, 405-1

percent

0
is the share of females in managing positions in the EOS Group. (Note: Gender as indicated by employees)

GRI 2-7, 405-1

percent

52
of female employees work full-time at EOS. For males it is 91 percent. (Note: Gender as indicated by employees)

GRI 2-7, 405-1

percent

80

Talent Attraction: Development and Retention

 

We want to position ourselves as an attractive employer, retain committed employees for the long term and offer them growth opportunities. To that end, the EOS Group launched numerous offerings and initiatives. One example is the international NXT talent management program in which 92 talented employees from 17 countries participate, receive targeted support and network within the group.

EOS is particularly interested in empowering employees and creating a positive and collaborative work environment for them. The Group-wide Masterplan learning platform gives employees access to a large selection of training material that they can put together according to their personal needs. Colleagues have convenient access to all offerings from home offices and can learn independently anywhere. GRI 404-2

Empowerment in figures

were completed on average by each employee of EOS in the 2022/23 financial year. That is an increase of nearly 22 percent over previous year and of more than 50 percent over fiscal 2020/21.

GRI 404-1

hours of advanced training

0
of EOS have registered on the Masterplan learning platform since January 2022.

GRI 404-2

employees

3,000

Recruiting talent, retaining talents

Empowerment ensures growth: EOS has launched numerous programs that offer staff members the opportunity for professional and personal growth.
A man and a woman having a relaxed-looking conversation, as a symbolic image of a corporate culture where employees have autonomy.
validationvalidation

Financial Sustainability

EOS advocates strong, binding industry standards and responsibility guidelines. We apply strict criteria when we price portfolio purchases and make other investments.
Decent work and economic growthDecent work and economic growth Peace justice and strong institutionsPeace justice and strong institutions Partnerships for the goalsPartnerships for the goals

Digital Responsibility & Cyber Security

 

Data usage is fundamental for the business of the EOS Group. We handle data responsibly and continuously improve our processes and systems in order to protect it. Some 90 employees Group-wide work in data protection and information security.

Monitoring tools allow us to detect attacks early and stop them. Right now, an even more extensive international protection system is being set up as part of the new Iron EOS program in which experts and tools ensure the safety of all national subsidiaries. “Iron EOS will put us in a position to react quickly throughout the Group,” says Gunnar Woitack, Chief Information Security Officer.

Data security in figures

have already obtained information security certifications (ISO 27001). Implementation projects have been started at several other companies. ISO 27001 is the internationally recognized standard for information security. Moreover, all EOS companies also adhere to the guidelines of the parent company, the Otto Group. They are broadly in line with ISO 27001.

EOS companies

0
(critical and high) were recognized and fixed by the monitoring tools of EOS in fiscal 2022/23. They helped us to react quickly to threats.

attack points

600
at EOS deal with data protection and information security Group-wide.

employees

90
by data protection supervisory authorities were received following debtor complaint. All of these were found to be not substantiated.

GRI 418-1

requests

82

How EOS protects data against cyberattacks

Data protection and information security have top priority for EOS. The company raises its cyber resilience to another level with a new Group-wide system.
Cybersecurity is a top priority for EOS. To achieve this the company is setting up an international protective shield.

Business Ethics & Safeguard Compliance

 

The EOS Group advocates strong, binding industry standards and responsible guidelines for the debt collection industry. To help define these standards, we are actively involved in several European debt collection associations and in numerous initiatives. GRI 2-28

To emphasize that we take our corporate responsibility seriously, we joined the United Nations Global Compact, which encourages companies worldwide to pursue and support sustainable and responsible business practices. As a member, we support the 10 UN principles concerning human rights, labor, anti-corruption and the environment. GRI 2-23

To counteract violations or undesirable developments, the EOS Group operates a platform that offers whistleblowers a protected space and is integrated in the mechanism of the Otto Group. Here, employees, as well as suppliers, service providers or clients can report compliance violations at EOS and the Otto Group. The platform helps us make improvements and eliminate grievances. GRI 2-25, 2-26
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Our Code of Conduct: Clear rules for fairness toward one other

With our Code of Conduct we create mandatory rules for our daily actions. The defined principles for responsible business conduct are a reliable guidepost for our employees, clients and partners, and are accessible to everyone on the websites of the EOS companies. The Code of Conduct is developed continuously. It is special because it is close to those for whom it was created. Starting in summer 2023, we will offer employees learning units that cover the Code of Conduct in greater depth. GRI 2-23, 2-24

Compliance in figures

count EOS among their members. We want to be involved in shaping the direction of the industry.

GRI 2-28

associations

0
were reported via the EOS whistleblower platform.

GRI 2-25

As none of the complaints proved to be justified, no countermeasures were required.

GRI 2-26

relevant violations

5
have access to the Group’s Code of Conduct.

GRI 205-2

percent of all EOS employees

100
occurred at EOS in the last fiscal year.

GRI 205-3

confirmed cases of corruption

0
have been assessed for risks related to corruption.

GRI 205-1

percent of our EOS operations

100

Responsible Acquisition of Portfolios & Partnerships

 

The business with non-performing loans requires a large measure of responsibility. Therefore, EOS applies strict, defined criteria when making decisions about taking on partners and clients.

One example is our cooperation with the Worldbank subsidiary International Finance Corporation (IFC), the largest global development bank. Within three years in conjunction with the bank, EOS will invest more than EUR 100 million in non-performing loans and real estate in Eastern Europe in compliance with ESG (Environmental, Social and Governance) standards.

Additionally, we make sure our pricing is sustainable and satisfies the business concerns and ethical standards of all parties. As part of a family business, the Otto Group, we focus on the long term and carefully assess all risks.

We choose our business partners according to defined criteria too and use our industry blacklist for that purpose.

As standard practice, we check how our partners and companies deal with human rights and issues such as money laundering, corruption and other criminal acts. We also make sure they comply with all sanction lists. Moreover, we do not work with companies engaged in pornography or prostitution, online gambling, subscription scams or untrustworthy microlending.

To ensure fair dealings with and by suppliers, EOS is currently working on a Code of Conduct for Service Providers that contains SDGs and regulations from the Supply Chain Due Diligence Act. GRI 2-23

We are guided by high standards in our own actions and expect our partners in the cross-border business to uphold them as well. To this end we offer training right at the beginning of our collaboration and visit our partners on site during the onboarding process to get a clear picture of their operations.
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Environmental Protection

As a strong part of the Otto Group, EOS supports the Group’s climate protection strategy that pursues the Paris Agreement goal of limiting global warming to 1.5-degree Celcius. Together we work on implementing targeted measures.
Climate ActionClimate Action

Reduction of Environmental Footprint

 

Science-based target

Together with the Otto Group, EOS is working on reducing emissions to net zero in the long run. The Otto Group is currently developing a science-based climate goal (based on the Science Based Targets Initiative, SBTi). The joint climate protection strategy is to fully comply with the 1.5-degree Celsius goal of the Paris Agreement. Our original goal of climate neutrality in our own core processes by 2030 is being considered in the development of the strategy and will be part of the future SBT. 
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People with tools preparing the EOS tree planting project in cooperation with the German association Bergwaldprojekt e.V.
Bergwaldprojekt e.V.

Projects for the environment

In cooperation with the carbon offset provider atmosfair, EOS has offset its CO2 emissions arising from business trips since 2021. EOS thus supports the climate protection project “Small Biogas Plants in Nepal,” which supplies households in rural Nepal with eco-friendly energy. The project has been approved by the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC) and by the Gold Standard for the Global Goals of the Swiss Gold Standard Foundation.

As a contribution to climate protection, EOS planted trees in 2022. In a Group-wide campaign, employees were asked to report about their private engagement for sustainability. The EOS Group thanked them by planting 500 native species trees together with the Bergwaldprojekt e.V. Another tree planting campaign is being planned for the coming fiscal year.

In its own initiative “Planton des arbres,” EOS France plants trees every three months. One tree is planted for each new hire in the quarter and one for each year of service for employees celebrating anniversaries. Last year EOS France planted more than 200 trees.

  • Modul în care integrăm sustenabilitatea în compania noastră

    Sustainability is a top priority for EOS. We have set the goal of integrating sustainability management and implementing related measures throughout the company. Our CEO has overall responsibility for all sustainability matters in the EOS Group. The Corporate Development (CD) department assumes operational responsibility for implementation. Semi-annually, CD reports to the Board on all sustainability-related activities and progress toward our goals.

    The CD team functions as an interface within the company and works closely with many departments (e.g., Corporate Compliance and Group HR) and national subsidiaries. Their joint efforts generated the first materiality analysis that we use as the framework for our sustainability strategy.  With our aim to become better every day, we continuously develop strategically relevant Key Performance Indicators, initiatives and measures, which are then approved by our Board. GRI 2-12, 2-13, 2-17
  • GRI Content Index Sustainability Report 2022/23

    Statement of use
    EOS has reported the information cited in this GRI content index for the period 1 March 2022 to 28 February 2023, with reference to the GRI Standards.

    GRI 1 used
    GRI 1: Foundation 2021
  • GRI Content
    2-1 Organizational details EOS Holding GmbH is a 100% subsidiary of the Otto GmbH & Co. KG with headquarters in Hamburg, Germany.

    More information: About this section
    More information: Details on the fiscal year
    2-2 Entities included in the organization’s sustainability reporting Please see: About this section
    2-3 Reporting period, frequency and contact point The combined Annual Report & Sustainability Report of the EOS Group covers the fiscal year 2022/23 from 1 March 2022 to 28 February 2023 and will be published annually from now on. The report was published in July 2023.

    More information: About this section
    More information: Changing finances for the better

    For contact details please see our Corporate Responsibility section on our company website
    2-6 Activities, value chain and other business relationships Please see: Changing finances for the better
    2-7 Employees Please see: HR-Table in the sustainability section

    The figures are presented in headcount and compiled as of the end of the business year (28 February) unless otherwise stated.
    2-8 Workers who are not employees Please see: HR-Table in the sustainability section

    Common types of work performed by these workers include administrative tasks, IT support and marketing services.

    The figure is presented in headcount and compiled as of the end of the business year (28 February).
    2-9 Governance structures and composition Please see: Interview with the EOS Board
    2-12 Role of the highest governance body in overseeing the management of impacts More information: Our sustainability management
    2-13 Delegation of responsibility for managing impacts  More information: Our sustainability management
    2-14 Role of the highest governance body in sustainability reporting The Board of Directors has reviewed and approved the information in this report, including the material issues discovered in the materiality assessment.
    2-15 Conflicts of interest The issue of conflicts of interests is addressed in the Code of Conduct, which is publicly available on the company website and within this report.

    More information: Our Code of Conduct
    2-17 Collective knowledge of the highest governance body Please see: Our sustainability management
    2-22 Statement on sustainability development strategy Please see: Foreword from our CEO
    2-23 Policy commitments At EOS we have multiple policies regarding responsible business conduct, including our Code of Conduct and our policy regarding Ethical Debtor Management, all of which are approved by our board of directors. EOS is a signatory to the UN Global Compact (UNGC). We follow the framework for implementation to monitor and enforce universal principles in the areas of human rights, labor, the environment, and anti-corruption as laid out in our public Code of Conduct. Our conduct is based on integrity and compliance with laws, regulations and the Universal Declaration of Human Rights. In following the tradition of our parent company, the Otto Group, we are committed to take action against any kind of human rights violations. This includes our self-imposed requirement to work only with partners and clients who pass our business partner checks and in places with no indications of human rights violations. Furthermore, we are committed to fair treatment of our stakeholders, especially defaulted payers.

    In addition, please see: Our Code of Conduct: Clear rules for fairness toward one other 
    and Global responsibility: The UN Global Compact as well as Business Ethics & Safeguard Compliance and Responsible Acquisition of Portfolios & Partnerships
    2-24 Embedding policy commitments In order to ensure coordinated and targeted action within the EOS Group, we have issued guidelines for all employees. The guidelines contain binding framework requirements for a defined scope. They are based on applicable laws, corporate principles and strategic objectives.

    Group-wide guidelines are drawn up by departments with functional responsibility. Adherence to the guidelines and group requirements is monitored by the Compliance Department. Each group guideline must be approved and signed by the EOS Board. In addition, acknowledgement of all managing directors within the EOS Group must be obtained and documented. The group-wide compliance network communicates the policy throughout the organization and provides training on its application.

    The group-wide guidelines of our parent company Otto Group also apply to the EOS Group. These guidelines are directly applicable and require only acknowledgement of the managing directors before they are communicated to the organization.

    Please refer to Our Code of Conduct: Clear rules for fairness toward one other
    2-25 Processes to remediate negative impacts We at EOS have formulated a clear commitment in the Code of Conduct to ensure compliance and to address all grievances we receive through numerous channels, including our own group-wide whistleblowing hotline. We continuously work on the remediation of negative impacts by taking action wherever necessary. Therefore, we have development a structured process to handle grievances and any report received.  
    We take confidentiality seriously by treating the reports received and the identity of persons providing information with the highest discretion. In every case, we document the correct processing of all reports received.
    Our whistleblowing portal is publicly available through every local company website. When submitting a report, the whistleblower can decide whether to provide their clear name and whether the report should be submitted to EOS and the Otto Group jointly or to the Otto Group only.
    The whistleblower is able to set-up a PostBox on the platform so we can provide prompt feedback and interact with the person while ensuring anonymity. If no PostBox is set up, no feedback and inquiry can be made directly. 
    After receiving the report, we apply clear criteria (severity, complexity, functional level) and determine the compliance relevance on a case-by-case basis. Further, we decide whether a report can be processed by the local compliance organization and whether local clarification work must be carried out directly by the central compliance organization.
    We ensure that compliant-relevant issues are handled carefully and result in the implementation of remediation plans as needed. In the case of serious allegations, an ad-hoc report is sent to the CEO and the EOS Group management member responsible for the national company and to the Otto Group. In the case of minor offenses, the cases are handled by the Compliance Organization. The Executive Board is informed as part of the consolidated regular reporting.

    In addition, please see Business Ethics & Safeguard Compliance
    2-26 Mechanisms for seeking advice and raising concerns It is in the interest of all of us to safeguard the reputation of EOS and to prevent compliance issues from arising. Therefore, we are committed to fair and responsible business conduct and have formulated overarching guidelines in our Code of Conduct. To ensure that individuals are able to raise concerns about our business conduct, we have published the access to our whistleblowing system on every company website and encourage not only employees, but also business partners and customers to report any violations of our business conduct. 
    We take reports about violations of compliance and business conduct seriously, investigate them and take appropriate measures - also beyond our company. Only if we know about infringements can we act to prevent future risks and to ensure the compliance with our standards. 
    Furthermore, we enable our business partners to implement our organizational policies and practices for responsible business conduct by publishing the Code of Conduct on our company website and providing additional guidance. By establishing business relations with EOS, our suppliers commit themselves to compliance with laws and our standards.

    In addition, please refer to Business Ethics & Safeguard Compliance
    2-28 Membership associations For the list of membership associations, please see the final version of the sustainability section Association work for high standards.
    2-29 Approach to stakeholder engagement Please see: Materiality analysis
    2-30 Collective bargaining agreements Share of employees covered by collective bargaining agreements as of 28 February 2022/23: 40%

    The above-mentioned figure refers to agreements between employee representatives and EOS. For all other employees, there are individual agreements with the employer.
    3-1 Process to determine material topics Please see: Materiality analysis
    3-2 List of material topics Please see: Our material topics
    201-1 Direct economic value generated and distributed Please see: The financial year at a glance
    205-1 Operations assessed for risks related to corruption 100% of EOS operations are assessed for risks related to corruption. 

    More information: Compliance in figures 
    205-2 Communication and training about anti-corruption policies and procedures 100% of employees had direct access to the Code of Conduct or Anti-Corruption policies during the reporting period 2022/23. 

    More information: Compliance in figures
    205-3 Confirmed incidents of corruption and actions taken Confirmed incidents of corruption: 2020/21: 0; 2021/22: 0; 2022/23: 0. 

    More information: Compliance in figures 
    401-1 New employee hires and employee turnover Please see: HR-Table in the sustainability section
    401-3 Parental leave Please see: HR-Table in the sustainability section

    Please note: The figure contains multiple entries for absences spanning more than one fiscal year.
    404-1 Average hours of training per year per employee Average hours of training per employee: 2020/21: 20.0; 2021/22: 25.5; 2022/23: 31.2.

    More information: Empowerment in figures
    404-2 Programs for upgrading employee skills and transition assistance programs Please see: Empowerment in figures
    405-1 Diversity of governance bodies and employees Please see: HR-Table in the sustainability section

    Please note: Gender as indicated by the employees themselves. In the reporting year, fewer than five (5) employees did not assign themselves to either of the two binary genders and therefore are not shown for data protection reasons.

    Please note: Management is defined as staff with responsibility for leading people (including call center supervisors, team leaders, line managers, etc.)
    413-1 Operations with local community engagement, impact assessments, and development programs Please see: Social Impact through Financial Literacy
    418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Requests received by data protection supervisory authorities following debtor complaints 2022/23: 82; of those substantiated: 0.

    More information: Data security in figures
PDF Reports
As of July 2023 
Reporting period: March 1, 2022 to February 28, 2023 

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