B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q2 2016 Earnings Presentation
22 slides from B2 Impact Asa's earnings presentation, Aug 26, 2016
Slide 1: Q2 2016 presentation
Q2 2016 presentation -- Oslo, 26 August 2016
Slide 2: B2Holding current status: highlights for the second quarter
B2Holding current status Highlights for the second quarter B2Holding has established itself as one of the leading players in the markets where the Group operates Financial developments - Successful listing on Oslo Stock Exchange in June, raising NOK 687m in new equity1) - High portfolio purchases in
Slide 3: 12 platforms managing over 2,500 portfolios in 15 countries
12 platforms managing over 2,500 portfolios in 15 countries, expected to generate NOK ~8.2bn in collection Mature market Platforms The Nordics • Stable flow • Mainly unsecured debt • High cash flow projection certainty 12 • High price in % of face value Two separate platforms under Countries with po
Slide 4: B2Holding group functions
B2Holding group functions CEO Olav Dalen Zahl Office Manager Ingeborg Andresen BD / Strategy / M&A CFO Chief Group Controller Head of Legal Chief Investment Officer Henrik Wennerholm Harald Henriksen Erik Just Johnsen Thor Christian Moen Jeremi Bobowski Rasmus Hansson CEO CEO CEO CEO CEO CEO Reg. ma
Slide 5: Financial highlights as of H1'16
Financial highlights as of H1’16 Increasing collections and cash EBITDA Increasing profits and acquisition activity Solid balance sheet and return on capital Gross Cash collection (NOK)1) Adjusted net profit (NOK)2) Equity ratio Adjusted ROE2) +47% +5% Q2’16: Q2’16 LTM: 840 75 79 572 44.3% 16.1% H1’
Slide 6: Record quarter in terms of acquisition activity: NOK 827m invested
Record quarter in terms of acquisition activity: NOK 827m invested Portfolio purchases Comments NOK million Historic high purchase volume in Q2, portfolio purchases in all 2014 2015 2016 geographies present Further strengthening of the position in the West Balkans by +85% purchasing one secured and
Slide 7: Total Gross ERC passed NOK 8bn in the second quarter
Total Gross ERC passed NOK 8bn in the second quarter Development in Total Gross ERC Total Gross ERC split by estimated collection time NOK million NOK million Baltics 8,186 1,721 1,733 1,551 Finland Rest of Nordics 1,144 Balkans 6,822 643 Poland 6,490 448 298 208 236 126 77 1 2 3 4 5 6 7 8 9 10 >10
Slide 8: Gross cash collection and net operating revenues continue to display strong growth
Gross cash collection and net operating revenues are continuing to display strong growth Gross cash collection on portfolios Net operating revenue NOK million NOK million +46% +49% 427 345 415 413 332 352 278 279 293 223 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 |8
Slide 9: Segment financials – Poland
Segment financials – Poland Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +20% 206 1,239 172 343 78 102 37 Q2’15 Q2’16 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Key financials Comments NOKm Q2’15 Q2’16 % growth Adam Parfiniewicz new CEO from 1 September The bailiff system
Slide 10: Segment financials – Balkans
Segment financials – Balkans Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +205% 80 668 474 26 107 47 0 Q2’15 Q2’16 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Key financials Comments NOKm Q2’15 Q2’16 % growth Acquisition of DCA purchase closed in June Strong operational re
Slide 11: Segment financials – Finland and the Baltics
Segment financials – Finland and the Baltics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +49% 96 127 114 96 64 72 77 Q2’15 Q2’16 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Key financials Comments NOKm Q2’15 Q2’16 % growth Continuing the solid performance Steady acquisiti
Slide 12: Segment financials – Rest of the Nordics
Segment financials – Rest of the Nordics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +51% 44 29 25 25 29 15 3 Q2’15 Q2’16 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Key financials Comments NOKm Q2’15 Q2’16 % growth Continued strong collection compared to forecasted curve
Slide 13: Continuing to display disciplined cost control
Continuing to display disciplined cost control Total operational costs per quarter Operational costs split NOK million NOK million Personnel costs Non-recurring costs 107 Higher costs due to an Recurring costs 93 72 81 increase in number of 60 employees from 1,186 to 228 1,374 (FTEs) and NOK 5,1 mil
Slide 14: Portfolio and acquisition composition
Portfolio and acquisition composition Portfolio distribution by type (measured by purchase price)1) Acquisitions by type (measured by purchase price) NOK million NOK million Secured Secured Unsecured Unsecured 32% 10% 11% 46% 17% 28% 68% 54% 2015 H1’16 Comments 90% Good portfolio flow in all markets
Slide 15: Strong y-o-y growth in EBIT and Cash EBITDA
Strong y-o-y growth in EBIT and Cash EBITDA EBIT Cash EBITDA NOK million NOK million Non-recurring items Non-recurring items As reported As reported +84% +56% 146 279 281 274 9 10 38 38 123 233 113 10 94 176 9 67 272 264 233 241 113 108 113 176 85 67 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q2’15 Q3’15 Q4’15 Q
Slide 16: Reported and adjusted net profit
Reported and adjusted net profit Net profit and non-recurring items Comments NOK million Non-recurring items Non-recurring operational As reported expenses related to advisory and the acquisition if DCA of 125 NOK 4.6m NOK 5.1m related to personnel costs Q2’15 net profit include 84 unrealised curren
Slide 17: Financial highlights: Income statement
Financial highlights: Income statement Income statement Comments 2015 NOKm Q2’15 Q1’16 Q2’16 Strong operational performance audited in Q2, with cash EBITDA Interest income on purchased loan portfolios1 189 915 233 284 growing 49% on a y-o-y basis Revenue from external collection 23 104 24 26 Other o
Slide 18: Financial highlights: Balance sheet
Financial highlights: Balance sheet Balance sheet Comments 2015 NOKm Q2’15 Q1’16 Q2’16 Strong growth in NPL and loan audited receivables with a 81% increase Tangible and intangible assets 396 418 404 499 y-o-y Other long-term financial assets 2 2 2 2 Net debt of ~NOK 2.2bn and Non-performing loans p
Slide 19: Financial highlights: Cash flow
Financial highlights: Cash flow Consolidated cash flow Comments 2015 NOKm Q2’15 Q1’16 Q2’16 Strong Cash flow from operation audited Cash EBITDA 176 829 272 264 q-o-q Interest expenses paid -17 -91 -47 -39 Working capital and FX revaluation -8 -145 -58 15 Portfolio investments in the Income tax paid
Slide 20: Financial targets
Financial targets Year-to-date 2016, B2Holding has acquired portfolios at a pace well above historical levels for comparable periods, and has a strong pipeline of opportunities being evaluated Portfolio acquisitions The company expects to acquire portfolios over the next years with a target to reach
Slide 21: Outlook
Outlook Highlights Strong focus on streamlining existing operations through implementing best practice between platforms and take advantage of B2H’s vast data capabilities Strong pipeline with large portfolios - B2H is actively looking at potential co-investments - With the continued push for banks
Slide 22: B2Holding AS contact details
B2Holding AS | Stortingsgaten 22 | P.O. Box 1642 Vika | N-0119 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: [email protected]