B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q2 2018 Earnings Presentation
28 slides from B2 Impact Asa's earnings presentation, Aug 31, 2018
Slide 1: Q2 2018 presentation
Q2 2018 presentation Oslo, 31 August 2018
Slide 2: Highlights Q2 2018
Highlights Q2 2018 Overview All-time high gross cash collection of NOK 1,032m up 71% (NOK 604m in Q2 2017) Cash EBITDA increased by 81% to NOK 759m (NOK 420m in Q2 2017) Financial Operating profit increased by 64% to NOK 356m (NOK 217m in Q2 2017) after record strong operations developments High por
Slide 3: Record quarter with strong financial performance
Record quarter with strong financial performance Total ERC and portfolio acquisitions Total revenues NOKm NOKm 761 1,120 702 1,951 1,485 2,273 646 14% 622 1% 519 14% 16% 482 3% 1% 12% 11% 4% 3% 20,119 84% 18,116 15,264 82% 82% 11,881 12,191 85% 85% Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q2’17 Q3’17 Q4’17 Q1’
Slide 4: A solid pan-European platform
A solid pan-European platform Northern Europe Poland Sweden 17 % Poland Denmark 25 % Norway Central Europe Latvia 28 % Croatia Lithuania NE Slovenia Finland Serbia Estonia P Czech Rep. Latvia WE B&H CE Estonia SEE Montenegro Lithuania Hungary Western Europe 10 % Tahiti France 20 % Southeastern Europ
Slide 5: Increased diversification
Increased diversification Quarterly Gross cash collection (NOKm) & relative regional distribution 60% 1 200 50% 1 000 1 032 40% 800 775 723 30% 650 600 575 604 556 20% 474 400 413 427 10% 200 0% - Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Total Northern Europe Poland Central Europe
Slide 6: Financial performance
— B2HOLDING’ Making each other better Financial performance
Slide 7: Strong second quarter
Strong second quarter Financial summary Comments % NOKm Q2’18 Q2’17 Record high operating profit of change Total operating revenues1) NOK 356m in Q2 2018, a 64 % 761 482 58 % EBITDA increase compared to Q2 2017 370 226 63 % Operating profit (EBIT) 356 217 64 % Profit margin 47 % 45 % Record high qua
Slide 8: Record-high EBITDA, cash EBITDA and EBIT
Record-high EBITDA, cash EBITDA and EBIT Income statement Comments 2018 2017 2018 2017 2017 NOKm Q2 Q2 6 months 6 months audited Gross cash collection above Interest income from purchased loan portfolios 639 394 1,181 755 1,680 curves on a Group level. Net credit gain/loss purchased loan portfolios
Slide 9: New platforms and increased activity in existing operations – cost to collect trending down
New platforms and increased activity in existing operations – cost to collect trending down Operational costs split Total operational costs NOKm NOKm Personnel costs 172 Personnel 392 155 153 119 123 costs higher mainly due to inclusion of NACC and higher operational activities Q2’17 Q3’17 Q4’17 Q1’
Slide 10: Financial highlights: Balance sheet
Financial highlights: Balance sheet Balance sheet Comments 2018 2017 2017 NOKm Q2 Q2 audited Increase in purchased loan Tangible and intangible assets 215 97 201 portfolios of 93% LTM Goodwill 713 431 522 Purchased loan portfolios 12,077 6,242 8,732 Other long-term financial assets 500 552 618 Defer
Slide 11: Mature funding structure with prudent leverage
Mature funding structure with prudent leverage Strategy Successful issuance of four bonds Equity, bond and bank debt is used to get access to capital for when EUR millions larger portfolios or platform acquisition opportunities arise E+7.50% E+7.00% E+4.25% E+4.75% - Total equity raised since 2011:
Slide 12: Record-high quarterly purchase volume: NOK 2.27bn in Q2
Record-high quarterly purchase volume: NOK 2.27bn in Q2 Portfolio purchase volumes Comments NOKm Record strong volume for a single quarter 2014 2015 2016 2017 2018 - 103% increase compared to Q2 2017 2 273 Portfolios acquired in all major markets - Large secured portfolio acquired in Croatia 1 951 1
Slide 13: Highly diversified portfolio yielding stable and predictable cash flows
Highly diversified portfolio yielding stable and predictable cash flows: Total gross ERC of approx. NOK 20.1bn (69% growth y-o-y) Development in total gross ERC1)2) Portfolio details (total gross ERC)1)2) NOKm NOKm Claims (#): Face value (NOK): Geography distribution Distribution by type SEE Poland
Slide 14: ERC profile next twelve months
ERC profile next twelve months ERC Year 11)2) Comments Secured Q3’18 Q4’18 Q1’19 Q2’19 Year 1 Poland 6 8 8 15 38 Secured collection with larger NE 3 3 3 3 12 variation quarter by quarter CE 164 645 358 390 1 557 WE 99 124 37 112 371 SEE 97 126 119 124 465 Unsecured collection more Total 368 906 525
Slide 15: Segment financials: Northern Europe (NE)
Segment financials: Northern Europe (NE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 416m in the quarter 687 All-time high Gross cash collection of NOK 276m in Q2 - Collection on unsecured in line with expectations 416 368 - Collection on secured combined with revaluatio
Slide 16: Segment financials: Western Europe (WE)
Segment financials: Western Europe (WE) Comments Purchased loan portfolios NOKm WE established as a region from 2018 - 2017 figures only include Italy 338 - NACC (France) included from Q2 2018 202 Portfolio purchase volume of NOK 338m in the quarter 94 63 Gross cash collection above curves for unsec
Slide 17: Segment financials: Poland (P)
Segment financials: Poland (P) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 330m in the quarter 330 Gross collection of NOK 217m - Gross collection above curves, and negative revaluation due to 188 changes in legal system 83 87 Cost to collect is 36%. Relocation expenses
Slide 18: Segment financials: Central Europe (CE)
Segment financials: Central Europe (CE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 922m in the quarter 949 - Large secured portfolio acquired in Croatia – GBV EUR 245m 922 Record gross collection in a quarter of NOK 340m - Unsecured portfolio collection above curves - S
Slide 19: Segment financials: Southeastern Europe (SEE)
Segment financials: Southeastern Europe (SEE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 265m in the quarter 861 All-time high collection, strong operational performance Gross cash collection NOK 132m 330 351 - Unsecured portfolio collection above curves and positive 26
Slide 20: Expected continued growth in second half of 2018
Expected continued growth in second half of 2018 – continued strong focus on operational performance Outlook Focus on further growth within the established platforms in 23 markets Significant investment capacity of NOK 2.1bn plus monthly cash flow Financial Focus on financial targets Co-investment s
Slide 21: Q&A
— B2HOLDING’ Making each other better Q&A
Slide 22: Organisational overview
Organisational overview Olav Dalen Zahl CEO Erik J. Johnsen Danckert Mellbye Jeremi Bobowski Harald Henriksen Thor Christian Moen Rasmus Hansson Chief Financial Chief Org & Chief Investment Chief Compliance Chief Legal M&A Director Officer Improvement Officer Officer Officer Officer Northern Europe
Slide 23: Financial highlights: Cash flow
Financial highlights: Cash flow Consolidated cash flow Comments 2018 2017 2018 2017 2017 NOKm Net cash flow from operating Q2 Q2 H1 H1 Full year Profit for the period before tax 242 143 445 281 648 activities increases Amortisation/revaluation of purchased loan portfolios 390 193 633 372 795 Adjustm
Slide 24: Record gross collection: +71% to NOK 1,032m
Record gross collection: +71% to NOK 1,032m Bridge Q2’17-Q2’18: Gross cash collection on portfolios Comments NOKm +71% Strong gross cash collection 1,032 81 Solid growth in NE (+44%), CE 9 66 (+153%) and SEE (+159%) 206 Expect continued strong growth in gross cash flow in CE and SEE going forward re
Slide 25: Ninth consecutive record quarter in terms of cash EBITDA
Ninth consecutive record quarter in terms of cash EBITDA EBIT Cash EBITDA NOKm NOKm +64% +81% 356 759 326 301 581 253 524 217 472 420 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 | 25
Slide 26: Cash collection and net operating revenue at record-high levels
Cash collection and net operating revenue at record-high levels Gross cash collection on portfolios Total operating revenue NOKm NOKm +71% +58% 1,032 761 646 622 775 723 519 650 482 604 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 | 26
Slide 27: 20 largest shareholders
20 largest shareholders # Shareholder No of shares Percentage 1 PRIORITET GROUP AB 52 200 000 12,79 % 2 RASMUSSENGRUPPEN AS 43 073 236 10,56 % 3 VALSET INVEST AS 25 000 000 6,13 % 4 STENSHAGEN INVEST AS 17 393 376 4,26 % 5 INDIGO INVEST AS 16 383 360 4,02 % 6 VERDIPAPIRFONDET DNB NORGE (IV) 10 948 2
Slide 28: Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47
Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: [email protected]