Delfingroup As · OMXRSE:DGR1R
Delfingroup As — FY2021 Earnings Presentation
28 slides from Delfingroup As's earnings presentation, February 2022
Slide 1: Financial Report: Unaudited Results for 12 Months Ending 31 December 2021
FINANCIAL REPORT UNAUDITED RESULTS FOR 12 MONTHS ENDING 31 DECEMBER 2021
Slide 2: DelfinGroup at a Glance
DELFINGROUP AT A GLANCE BUSINESS SEGMENTS Consumer loans Pawn loans 5,927 AWARDS POS loans Investors participated in Latvian Corporate Largest financial IPO Governance Award 2021* Retail of pre-owned goods services branch network in Latvia 90+ 38 290+ KEY FINANCIALS (2021 12M) branches cities employ
Slide 3: Q4 Highlights
Q4 HIGLIGHTS DelfinGroup closed IPO on Nasdaq Riga. 5,927 investors participated, raising EUR 8.09 IPO million gross proceeds. Shares listed on Baltic Main list. Strengthening of the management team with Sanita Zitmane, an experienced TEAM professional in developing and managing fintech products. Re
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Slide 5: Q4 Highlights
Q4 HIGLIGHTS Opening of new Banknote branches in Riga (Zolitude) and Daugavpils. Banknote branch ACCESSIBILITY network reaching 93 entities in Latvia. NEW PRODUCTS VIZIA credit line with limit up to EUR 3,000. PRODUCT Banknote and VIZIA consumer loan limit increase from EUR 5,000 to 7,000 and the IM
Slide 6: Selected Financials
SELECTED FINANCIALS Total loans issued Total revenue, quarterly cumulative m€ Q4 y-o-y Q4 y-o-y m€ Q4 y-o-y Q4 y-o-y +1.5 +7% +1.8 +8% +0.8 +6% +1.9 +14% 15.3 15.4 25.5 14.6 22.2 23.7 12.7 13.5 11.5 11.8 18.4 10 17 8.5 11.2 11.9 6 6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 202
Slide 7: Consumer Loans
CONSUMER LOANS Consumer net loan portfolio Average loan* m€ Q4 y-o-y Q4 y-o-y € Q4 y-o-y Q4 y-o-y +7.4 +37% +12.5 +46% +204 +30% +303 +34% 39.8 1,182 35.1 978 1 027 1,090 27.3 28 30.4 823 879 24.7 675 679 691 19.9 20.3 20.3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2019 20
Slide 8: Pawn Loans
PAWN LOANS Pawn net loan portfolio Average loan amount m€ Q4 y-o-y Q4 y-o-y € Q4 y-o-y Q4 y-o-y -0.4 -15% +0.3 +13% +1 +1% +6 +9% 2.5 2.5 70 68 69 73 74 2.3 2.3 2.3 2.4 67 67 62 65 2.1 2.0 1.7 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2020 2021 Redemption rate* % Q4 y-o-y Q4 y-
Slide 9: Retail of Pre-Owned Goods
RETAIL OF PRE-OWNED GOODS* Sales of goods Gross margin m€ Q4 y-o-y Q4 y-o-y % Q4 y-o-y Q4 y-o-y +0.1 +5% +0.2 +9% +/- 0pp +/- 0pp 43% 43% 44% 41% 43% 43% 43% 39% 40% 2.2 2.3 2.2 2.2 2.3 2.4 2.1 2.1 2.1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2019 2020 2021 Number of items sol
Slide 10: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2021 Change 2020 2021 Change INCOME STATEMENT, EUR’000 Q3 Q4 % 12M** 12M % Total revenue 6,463 7,089 10% 23,664 25,489 8% Cost of sales -849 -1,057 24% -4,224 -3,668 -13% Credit loss expense* -956 -237 -75% -2,404 -2,477 3% Interest expenses and similar -885 -1,109 25%
Slide 11: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET BALANCE SHEET, EUR’000 2020.12.31 2021.12.31 Change Fixed and intangible assets 1,038 1,201 16% Loans to related parties 474 - -100% Net loan portfolio 34,674 42,962 24% Inventory and scrap 1,534 1,949 27% Other assets 655 520 -21% Cash 4,592 2,460 -46% Right-of-use assets
Slide 12: Financial Ratios
FINANCIAL RATIOS EBITDA margin* Equity ratio ROE** 33.4% 50.4% 42.4% 42.2% 45.2% 46.7% 38.0% 40.7% 40.0% 41.8% 40.3% 38.1% 40.0% 25.2% 22.3% 20.5% 21.1% 20.4% 35.6% 37.6% 18.5% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2020 2021 2020 2021 Cost-to-income ratio* Cost of
Slide 13: Diversified and Sustainable Capital Structure
DIVERSIFIED AND SUSTAINABLE CAPITAL STRUCTURE Active MINTOS investor map, Q4 2021 DelfinGroup has more than 64,000 investors in Mintos from 107 countries Capital structure, Q4 2021 Bond financing track record 6.0 39% 37% m€ 5.0 5.0 5.0 5.0 3.5 3.5 24% 2013 2014 2016 2019 2020 2021 2021 Equity Mintos
Slide 14: Dividends
DIVIDENDS Dividend policy Quarterly dividends EUR 512,111 Up to 50% from previous Q profit Dividends paid in Q4 Regular cash distribution to EUR 0.0113 Annual dividends shareholders Per share In amount to ensure optimal capital structure Dividend payments 5 times a year: • 4 quarterly • 1 annual 1.5
Slide 15: Share Performance
SHARE PERFORMANCE Share price, EUR Financial 31.12.2021 DelfinGroup 1.55 industry** 1.5 Capitalization m EUR 63.5 - 1.45 EPS EUR* 0.103 - 1.4 P/E 13.6 21.4 1.35 P/BV 3.7 3.2 1.3 *Calculations based on weighted average of total outstanding shares that increased 20.10.2021 20.11.2021 20.12.2021 in 202
Slide 16: Subscribe to our newsletter
Be updated about the latest DelfinGroup news by subscribing to our newsletter Visit our homepage www.delfingroup.lv to subscribe 16
Slide 17: Appendix
Appendix 17
Slide 18: Consolidated Income Statement
2019* 2020* 2021 2020 2021 Income Statement, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12M* 12M Total revenue 4,936 5,429 5,951 5,861 6,020 5,195 5,788 6,659 6,018 5,918 6,463 7,090 23 664 25,489 Cost of sales -756 -856 -1009 -982 -1215 -961 -993 -1,055 -748 -1,015 -849 -1,057 -4,224 -3,669 Credit
Slide 19: Consolidated Balance Sheet
2019 2020 2021 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fixed and intangible assets 652 621 775 691 748 860 927 1,038 864 818 790 1,201 Loans to related parties 1,295 1,389 1,397 1,308 1,376 1,381 376 474 445 - - - Net loan portfolio 20,761 26,609 29,474 31,547 32,493 32,256 34,040
Slide 20: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY Electricity and petrol usage MWh 192.6 178.0 160.6 168.8 158.1 146.4 152.5 Environmentally 129.1 136.0 responsible workplace 58.3 55.9 46.3 60.2 50.8 45.0 50.6 51.0 46.7 DelfinGroup has received quality and Q4 2019 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 energy management Elec
Slide 21: Environmental Sustainability (Continued)
ENVIRONMENTAL SUSTAINABILITY (CONTINUED) Greenhouse gas emissions and emission intensity 161.6 Environmentally 146.5 151.1 140.1 136.1 133.0 132.2 121.6 responsible workplace 113.0 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.02 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 Greenhouse gas emissions*, t CO2
Slide 22: Environmental Sustainability (Continued)
ENVIRONMENTAL SUSTAINABILITY (CONTINUED) Pawn shop as part of circular economy Qty 40000 36,367 35,441 1200 33,552 33,506 34,798 33,228 32,812 33,266 DelfinGroup 35000 31,776 32,235 29,349 1000 promotes efficient 30000 27,005 use of resources by 25000 678 800 604 605 571 returning pre- 20000 497 511
Slide 23: Social Responsibility
SOCIAL RESPONSIBILITY Dynamics of the number of employees and gender diversity 281 285 297 272 273 265 279 277 260 300 250 Employees 57% 56% 56% 56% 48% 52% 55% 49% 51% 52% 48% 55% 200 43% 44% 44% 44% 45% 45% 150 100 DelfinGroup 50 is committed to be 0 inclusive and Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 suppor
Slide 24: Social Responsibility (Continued)
SOCIAL RESPONSIBILITY (CONTINUED) Employee turnover and average employee length of service 4.7 4.6 4.7 4.8 4.6 5.0 4.4 4.5 18% 3.9 3.9 4.1 4.0 4.1 4.0 11% Employees 9% 10% 13% 3.0 7% 7% 7% 6% 7% 5% 6% 6% 8% 2.0 4% Stable average 1.0 3% employee length of 0.0 -2% service indicates Q1 2019 Q2 Q3 Q4 Q1
Slide 25: Company milestones timeline
Received ISO First ESG 9001 and 50001 report certification published APR OCT Corporate identity Online lending changed to First 100 000 started customers registered rebranding SEP NOV AUG NOV 50 branches opened in major cities of Latvia DEC OCT Initial Public Offering at Nasdaq Riga OCT JUL MAR FEB
Slide 26: Definitions for Alternative Performance Measures
EBITDA Interest-Bearing Debt Earnings before interest, taxes, depreciation and amortization = (Profit before tax) + Liabilities thatrequire the payment ofinterest,including bonds, other loans, leasing liabilities (Interest expenses and similar expenses) + (Rights of used assets depreciation) + etc.
Slide 27: Disclaimer
DISCLAIMER This presentation is of selective nature and is made to This presentation is not a legally binding document, and the provide an overview of the Company’s (AS DelfinGroup Company has no liability for any direct or indirect loss from and its subsidiaries) business. the use of this presentat
Slide 28: AS DelfinGroup
AS DelfinGroup Skanstes street 50A Riga, Latvia, LV-1013 [email protected] (+371) 26 18 99 88 www.delfingroup.lv 28