B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q2 2019 Earnings Presentation
26 slides from B2 Impact Asa's earnings presentation, Aug 30, 2019
Slide 1: Second quarter presentation
Q2 Second quarter presentation Oslo, 30 August 2019
Slide 2: Highlights Q2 2019
Highlights Q2 2019 Key financials Total gross revenues Strong cash collections and excl. net credit loss Total revenues Gross Cash Collections cash EBITDA 800 379 1,274 Reporting a loss of NOK 270 million following net actualisation/ revaluation NOK million NOK million NOK million charges of NOK 421
Slide 3: Highlights Q2 2019
Highlights Q2 2019 Volume Servicing fees and other income increased by 9% to NOK 118m (NOK 108m Q2 2018) growth Portfolio purchases of NOK 1,667m (NOK 2,273 in Q2 2018) Revenues at NOK 800m before net actualisation/revaluation. Total revenues at NOK 379m following net actualisation/revaluation charg
Slide 4: One-off write down on secured portfolios in three markets
One-off write down on secured portfolios in three markets 30% Secured claims (corporate, SMEs and Delays limited Mitigating actions retail) share of the total ERC per Q2 2019 The problem has been identified and is limited to some portfolios Ongoing discussions regarding co-investment structures and
Slide 5: Unsecured collections ahead of forecast
Unsecured collections ahead of forecast Steady collections going forward 70% Unsecured retail Gross cash collection of unsecured claims has overperformed initial forecast portfolios share of the total ERC per Q2 2019 Steady pipeline and market opportunities, with reduced price pressure in most marke
Slide 6: Well diversified across Europe
Well diversified across Europe Strategic spread across the regions GROUP REGIONS Poland 16% NE Northern Europe (NE) 35% Total ERC1 Q2’19 22.6 CE Norway, Sweden, Total ERC1 23% Denmark, Finland, NOKbn Latvia, Lithuania, WE SEE Estonia 12% 14% Poland Poland Poland NE 165 84 Western Europe (WE) EBITDA
Slide 7: Capital structure with prudent leveraging
Capital structure with prudent leveraging Strategy Staggered maturity with ample liquidity headroom Funding structure with sound leverage levels, significant financial flexibility EUR millions and supporting liquidity reserves I+3.25- E+7.50% E+7.00% E+4.25% E+4.75% E+6.35% 3.75% - Significant tangi
Slide 8: Four main focus areas going forward
Four main focus areas going forward 1 STRONGER FOCUS ON SECURED Organisational changes within secured including additional specialized resources Increased head office involvement and oversight 2 IMPROVE EFFICIENCY IN OPERATIONS Automation of manual processes, digitalization and standardization
Slide 9: Financial performance
B2 HOLDING? Making each other better Financial performance
Slide 10: Second quarter summary
Second quarter summary Financial summary Comments NOKm 2019 Q2 2018 Q2 % change Reported loss of NOK 270 million Total revenues excl. net credit gain/(loss) 800 758 6% following net actualisation/ Net credit gain/(loss) from purchased loan portfolios1) -421 3 revaluation charges of NOK 421 Total rev
Slide 11: Quarterly result affected by one-off write down
Quarterly result affected by one-off write down Income statement KPIs 2019 2018 2019 2018 2018 NOKm Gross Cash Collections increased Q2 Q2 6 months 6 months Audited Interest income from purchased loan portfolios 660 639 1,318 1 181 2,537 +23% Net credit gain/loss purchased loan portfolios -421 3 -41
Slide 12: Increasing focus on costs and economies of scale
Increasing focus on costs and economies of scale Personnel costs1 External costs1 Other operating costs1 125 93 87 64 105 53 9% 10% 10% 7% -2 ppt 5% 5% 5% 5% NOKm NOKm NOKm Q2’18 Q2’19 Q2’18 Q2’19 Q2’18 Q2’19 CtC% Personnel costs CtC% External costs CtC% Other operating costs Cost to Collect 24.3% 2
Slide 13: Balance sheet
Balance sheet Balance sheet Comments NOKm 2019 Q2 2018 Q2 % change 2018 Audited Available investment capacity of Deferred tax asset 108 58 88 % 97 NOK 2.0bn1) plus monthly cash Goodwill 769 713 8% 785 Tangible and intangible assets 371 215 73 % 274 flow Investments in associated companies and joint
Slide 14: Quarterly purchase volume: NOK 1,667m in Q2
Quarterly purchase volume: NOK 1,667m in Q2 Portfolio purchase volumes1) Comments NOKm 2014 2015 2016 2017 2018 2019 Good purchase volume in second quarter 2019 Portfolios mainly acquired in Northern Europe 2 273 Excluding the JV with DDM, more than 90 % of purchased portfolios were unsecured portfo
Slide 15: Diversified portfolio yielding stable cash flows
Diversified portfolio yielding stable cash flows Total gross ERC of NOK 22.6bn (12% growth y-o-y) Development in total gross ERC1) Portfolio details (total gross ERC)1) NOKm NOKm Claims (#): Face value1) (NOK): Geographical distribution Distribution by type SEE Poland ~7.4m ~155bn WE 14% 16% Secured
Slide 16: Q&A
B2 HOLDING? Making each other better Q&A
Slide 17: Financial highlights: Quarterly financial performance
Financial highlights: Quarterly financial performance Total ERC1) and portfolio purchases Total revenues NOKm NOKm 795 2,273 988 1,6342) 570 1,667 761 746 753* 14% 7% 15% 15% 3% 2% 1% 1% 379 20,608 22,262 21,434 22,595 84% 84% 90% 83% 31% 20,119 6% 63% Q2’18 Q3’18 Q4´18 Q1’19 Q2’19 Q2’18 Q3’18 Q4´18
Slide 18: Northern Europe (NE)
Northern Europe (NE) Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Strong operating performance NOKm 2019 Q2 2018 Q2 Change (%) Highlights & KPIs Gross revenues 208 167 25 % Portfolio purchase volume of NOK 733m in the quarter Net revalutation/actualisation 45 -3 Gross cash collect
Slide 19: Western Europe (WE)
Western Europe (WE) Spain, Italy, France and Portugal Steadily moving forward NOKm 2019 Q2 2018 Q2 Change (%) Highlights & KPIs Gross revenues 121 100 22 % Portfolio purchases of NOK 125m in the quarter Net revalutation/actualisation 124 7 Gross cash collection in Q2 of NOK 101m Total revenues 245 1
Slide 20: Central Europe (CE)
Central Europe (CE) Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Maturing market NOKm 2019 Q2 2018 Q2 Change (%) Highlights & KPIs Gross revenues 194 190 2% Portfolio purchases of NOK 12m in the quarter excluding JV with DDM Net revalutation/actualisation
Slide 21: South East Europe (SEE)
South East Europe (SEE) Romania, Bulgaria, Greece and Cyprus Increasing servicing revenues and good pipeline visibility NOKm 2019 Q2 2018 Q2 Change (%) Highlights & KPIs Gross revenues 121 148 -18 % Portfolio purchases of NOK 94m in the quarter Net revalutation/actualisation -124 14 Gross cash colle
Slide 22: Poland (P)
Poland (P) Poland A mature but still high yield market NOKm 2019 Q2 2018 Q2 Change (%) Highlights & KPIs Gross revenues 155 154 1% Portfolio purchase volume of NOK 78m in the quarter Net revalutation/actualisation 22 -14 Gross collection in Q2 of NOK 243m 178 140 27 % - Collections on unsecured abov
Slide 23: 20 largest shareholders
20 largest shareholders # Shareholder No of shares Percentage 1 PRIORITET GROUP AB 52 913 000 12,91 % 2 RASMUSSENGRUPPEN AS 43 073 236 10,51 % 3 VALSET INVEST AS 25 000 000 6,10 % 4 STENSHAGEN INVEST AS 17 893 376 4,36 % 5 VERDIPAPIRFONDET DNB NORWAY (IV) 16 280 364 3,97 % 6 VEVLEN GÅRD AS 8 700 000
Slide 24: Definitions
Definitions 120-month ERC Cash revenue Estimated remaining collection, which expresses the gross cash collection in face value Cash revenue consists of “Total revenues” added back amortisation and revaluation of expected to be collected in the future over a 120-month period from the purchased purcha
Slide 25: Definitions (cont'd)
Definitions (cont’d) Forward flow agreements Operating cash flow per share Forward flow agreements are agreements where the Group agrees with the portfolio Operating cash flow per share is operating cash flow from consolidated statement of cash provider that it will, over some period in fixed interv
Slide 26: 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]