Avarda Bank Ab · OMXSTO:AVARDA
Avarda Bank Ab — TF Bank — Shareholder Meeting (May 2017)
24 slides from Avarda Bank Ab's shareholder meeting presentation, May 3, 2017
Slide 1: TF Bank AB (publ) Årsstämma 3 maj 2017
TF Bank AB (publ) Årsstämma 3 maj 2017 kl 1600
Slide 2: Förslag till Dagordning
Förslag till Dagordning 1. Stämmans öppnande och anförande av styrelsens ordförande 2. Val av ordförande vid stämman 3. Upprättande och godkännande av röstlängd 4. Godkännande av dagordning 5. Val av två personer att justera protokollet 6. Prövning av om stämman blivit behörigen sammankallad 7.Framl
Slide 3: Anförande av verkställande direktören
Anförande av verkställande direktören
Slide 4: 2016 – an historic year!
2016 — an historic year! TFBank
Slide 5: 2016 in summary
2016 in summary Full Year 2016 vs 2015 LOAN BOOK GROWTH +35.5% o Record high organic loan book growth o Strong EPS growth EPS growth +23%1) o Cost efficiency C/I RATIO 38.6% o Strong capital base TOTAL CAPITAL 18.2% RATIO (Dec ’16) 1) Attributable to shareholders of the parent company excluding item
Slide 6: This is TF Bank
This is TF Bank DIVERSIFIED GEOGRAPHICALLY GRANULATED DIVERSIFIED PORTFOLIO NEW OPPORTUNITIES FLEXIBLE IN SALES FINANCE IT- PLATFORM WITH AVARDA LEAN AND COST CLEAN BALANCE FOCUSED SHEET SALE OF NPL ORGANIZATION 6
Slide 7: Long track record of profitable growth
Long track record of profitable growth Long experience and proven business model Strong track record on growth and profitability SEK million o More than 25 years experience from 2 500 LOAN PORTFOLIO 500 consumer finance industry 2 250 2 000 400 1 750 1 500 300 o Business model combining growth with
Slide 8: Market positioning within Direct to Consumer segment
Market positioning within Direct to Consumer segment Illustrative overview of consumer finance markets Comments • Highly competitive market space. • Several market participants have increased ticket sizes in recent years, in search of Sweden volumes. • TF Bank focuses on a Norway Large banks market
Slide 9: Direct to Consumer - Diversified Granulated Portfolio
Direct to Consumer - Diversified Granulated Portfolio Product overview and use of proceeds Loan sizes and customer profile o Unsecured consumer loans Average size (SEK) (per Dec ’16) o Marketed through internal channels and external partners ~24,000 o Tenor of loans are typically between 12 and 60 m
Slide 10: Sales Finance – Drives new lending and builds database
Sales Finance – Drives new lending and builds database Product overview Key financials o The Sales Finance segment enables merchants to offer % OF TOTAL LOAN PORTFOLIO (Q4’16) KEY FACTS financing solutions to their customers 17% o TF Bank offers reliable and attractive white-label Amount 413 SEKm so
Slide 11: Strong loan book growth driven primarily by Direct to Consumer
Strong loan book growth driven primarily by Direct to Consumer TF Bank Group Direct to Consumer segment SEK million SEK million 12M growth 2 800 2 200 +39.6% 2 076 2 000 1 940 2 600 12M growth 2 489 1 766 1 800 +35.5% 1 629 2 400 2 357 1 600 1 487 2 185 1 400 2 200 2015 Q1'16 Q2'16 Q3'16 Q4'16 2 012
Slide 12: Summary: growth and diversification according to plan
Summary: growth and diversification according to plan Country Loan book growth in MSEK (share of group) Comments Growth Q4’15 Q4’16 during 2016 660 847 o Strong growth in both segments +28% (36%) (34%) Growth Q4’15 Q4’16 during 2016 655 663 +1% o Focus on profitability (36%) (27%) Growth Q4’15 Q4’16
Slide 13: Increased operating income and continued strong margins
Increased operating income and continued strong margins Operating income Operating income margins Comments SEK million o Operating income margin Q4’16/Q4’15 growth +19% decreasing mostly due to: 125 30% 118 114 108 Operating margin • Growth in Norway 99 101 25% (lower margins) 100 22,4% 21,5% 21,3%
Slide 14: Net loan loss ratio continues to decrease
Net loan loss ratio continues to decrease Net loan losses Net loan loss ratio Comments SEK million o Clean balance sheet policy 30 28 28 28 28 10% • Non Performing Loans 27 9% are generally sold on 25 forward flow basis after 8% approx. 70 days 7% 20 6,2% 5,8% 5,7% 6% 5,4% 5,1% 15 5% o Net loan loss
Slide 15: Funding position
Funding position Strong balance sheet and capital position Comments SEK million BALANCE SHEET, 31 DECEMBER 2016 2,942 A 2,942 Other assets 73 91 Other liabilities Solid liquidity position Loans to credit institution 290 A Liquidity reserve •Liquidity [Comment] reserve 31% of Cash at central banks Tr
Slide 16: Strong capital position to support further growth
Strong capital position to support further growth Historical and current capital structure 1) Comments o Strong CET1 ratio of 14.5% and total 19.3% 18.5% 18.6% 18.2% 18.2% capital ratio of 18.2% 4.4% 4.0% T2 4.3% 4.2% 3.7% o Significant headroom to legal requirements o CET1 capital requirement: 8.32
Slide 17: Outcome vs. financial targets 2016
Outcome vs. financial targets 2016 Note: Medium term defined as 3-5 years Item Target Outcome Over the medium term, the Company aims to achieve an EPS Growth 231 percent growth of at least 20 percent Over the medium term, the Company aims to achieve a cost to Efficiency 38.6 percent income ratio of
Slide 18: Stock market development
Stock market development aug 16 okt '16 dec 16 — TF Bank “I TFBank feb'17 apr'17 100 90 8 80 iF) 18
Slide 19: Stock market development
Stock market development 16); Return since TF Bank first day of trading (14 June 201 Rebased to 100 150 13-Nov-16 13-00-16 13-Sep-16 Nordax SAX Index Carnegie Small Cap Resurs TF Bank 19 His TFBank
Slide 20: Looking ahead
Looking ahead > Continued profitable growth in both segments and in all countries ü Strong start to 2017 – maintaining momentum ü Increased focus on OPEX within the Group ü Increased product mix both in financing and lending ü Core markets – maximise use of customer database, cross selling ü De
Slide 21: Q&A
“I TFBank Q&A
Slide 22: Appendix
Appendix 22
Slide 23: Executive management team
TF Bank team Declan Mac Guinness Johannes Rintaniemi Björn Skytt CEO Head of Finland and Head of CIO Direct to Consumer Executive management team With TF Bank since 2012 With TF Bank since 2010 Previous experience: CEO of Carlson Fonder AB With TF Bank since 2011 Previous experience: Worked as integ
Slide 24: Strong Governance through experienced Board
Strong Governance through experienced Board Mattias Carlsson Thomas Grahn Tone Bjørnov Chairman of the Board since Board member since 2010 Board member since 2015 2015, Board member since 2008 Previous appointments include the Swedish Current commitments: Filmparken AS, chairman, Financial Superviso