PPF Investment Group Undergoes Transformation and Focuses on Western Europe: Jiří Šmejc’s Vision for Growth and Success

PPF, under the leadership of Jiří Šmejc, has reported a decrease in earnings for the past year due to the sale of assets in Russia. However, Šmejc remains optimistic about the group’s future profitability and plans to grow its valuation by an average of 10 to 12 percent per year. PPF focuses on four main investment pillars: telecommunications, media, finance, and e-commerce.

In recent years, PPF has undergone a large-scale transformation, shifting its focus towards Western Europe. It has sold its Home Credit division in Indonesia and the Philippines, as well as its branches in China, and is now seeking partners in India or Vietnam. The group has also withdrawn from Russia, which Šmejc believes was the right decision despite the financial cost.

Šmejc reaffirms PPF’s strategy to focus on Western Europe, with opportunities for purchases in media and banking. The group currently owns several businesses in the Czech Republic, including O2, Cetin, Škoda Group, and Air Bank. Šmejc emphasizes the importance of synergies between banks and telecommunications, citing Air Bank’s acquisition of 100,000 new clients, a quarter of which came through O2.

E-commerce is another key area for PPF, with a focus on the technical background and infrastructure rather than e-shops themselves. The group recently acquired a stake in Heureka and the Polish company InPost. Šmejc expects InPost to grow significantly, especially in France and Britain.

PPF is also considering the acquisition of Czech Zásilkovna, a company that operates in several Central European countries. Šmejc indicates that PPF would only be interested in acquiring the entire company, rather than a partial stake.

Since taking over as head of PPF, Šmejc has prioritized closing large deals efficiently. The group’s analytical power has increased significantly, allowing them to review over fifty deals a year. Šmejc attributes PPF’s advantage to being able to thoroughly analyze and calculate transactions and make quick decisions, as they primarily work with their own money.

In terms of future plans, Šmejc has an agreement with Renáta Kellnerová, the widow of PPF’s founder, that he may acquire up to a tenth of a share in the group if it grows sufficiently under his leadership. However, the conditions for this acquisition were not disclosed.

PPF’s advisory committee, which helps set the group’s investment strategy, may also be expanded. The committee currently includes Ladislav Bartoníček and Daniel Křetínský, who has collaborated with PPF and Šmejc in the past. Šmejc acknowledges that there are occasional differences in opinion within the committee but emphasizes that they are not fundamental disagreements.

Overall, Šmejc remains optimistic about PPF’s future growth and profitability, with a focus on Western Europe and strategic investments in telecommunications, media, finance, and e-commerce.Jiří Šmejc, the head of the PPF investment group, has outlined his plans to grow the group’s valuation by an average of 10 to 12 percent per year. Despite a decrease in profitability last year, largely due to the need to sell assets in Russia, Šmejc believes that PPF would have surpassed pre-Covid levels if not for this setback. The group’s four main investment pillars are telecommunications, media, finance, and e-commerce.

PPF has been undergoing a significant transformation in recent years, with a focus on Western Europe. It has sold its Home Credit division in Indonesia and the Philippines, as well as its branches in China, and is now seeking partners in India or Vietnam. The decision to withdraw from Russia, although costly, was deemed the right thing to do by Šmejc, who stated that certain principles are more important than making money.

While PPF continues to be active in its home market, owning companies such as O2, Cetin, Škoda Group, and Air Bank, Šmejc is also looking for opportunities for acquisitions in Western Europe, particularly in the areas of media and banking. The group recently acquired a minority stake in ProSiebenSat.1 Media, a leading German television company.

PPF is also heavily involved in e-commerce, focusing on the technical background and infrastructure rather than e-shops themselves. The group has withdrawn from Mall Group but acquired a share in the Heureka comparison shop and the Polish company InPost. Šmejc sees potential for InPost to grow in France and Britain, aiming to be as strong there as it is at home.

Regarding the potential acquisition of Zásilkovna, a Czech delivery company currently for sale, Šmejc indicated that PPF is interested in the entire company rather than just a part. The value of Zásilkovna is estimated to be in the billions of crowns.

Since taking over as head of PPF, Šmejc has focused on closing large deals efficiently and increasing the group’s analytical power. PPF primarily works with its own money, allowing for quick decision-making. Šmejc’s agreement with Renáta Kellnerová, the widow of PPF’s founder Petr Kellner, includes the possibility of acquiring up to a tenth of a share in the group.

While Šmejc and his colleagues are considering expanding the advisory committee that helps set PPF’s investment strategy, he highlighted the strong alignment between himself and Daniel Křetínský, a billionaire who is also involved with PPF. However, there are occasional differences in investment opportunities, such as the acquisition of InPost.

PPF, founded in 1991 by Petr Kellner, operates in more than two dozen countries and specializes in investments in telecommunications, media, real estate, financial services, and biotechnology. The group’s total assets are worth 40 billion euros, and it employs tens of thousands of people worldwide. The largest part of PPF’s business was the installment company Home Credit, which faced challenges due to regulatory changes in China, the exit from Russia, and the sale of branches in Indonesia and the Philippines.

How is PPF improving its efficiency in closing large deals and what advantages does this give them in the market

Man media company, and is actively seeking further investment opportunities in the region.

E-commerce is another important focus for PPF, with the group prioritizing investments in the technical background and infrastructure that support e-shops. Recent acquisitions include stakes in Heureka and the Polish company InPost. Šmejc sees significant growth potential for InPost, especially in France and Britain.

PPF is also considering the acquisition of Czech Zásilkovna, a company that operates in several Central European countries. Šmejc has made it clear that PPF would only be interested in acquiring the entire company, rather than a partial stake.

Under Šmejc’s leadership, PPF has become more efficient at closing large deals. The group’s analytical capabilities have significantly improved, allowing them to review over fifty deals a year. Their ability to thoroughly analyze and calculate transactions, as well as make quick decisions, gives them a competitive advantage.

Looking ahead, Šmejc has an agreement with Renáta Kellnerová, the widow of PPF’s founder, regarding the potential acquisition of up to a tenth of a share in the group. However, the specific conditions for this acquisition have not been disclosed.

The advisory committee that assists in setting PPF’s investment strategy may also be expanded, with current members Ladislav Bartoníček and Daniel Křetínský. Šmejc acknowledges that there can be differences in opinion within the committee but emphasizes that they are not fundamental disagreements.

Overall, Šmejc is optimistic about PPF’s future growth and profitability. Despite the challenges faced, particularly the sale of assets in Russia, he believes that the group has a strong foundation and is well-positioned to capitalize on opportunities in Western Europe.