B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q4 2016 Earnings Presentation
25 slides from B2 Impact Asa's earnings presentation, Feb 27, 2017
Slide 1: Q4 2016 presentation
Q4 2016 presentation -- Oslo, 27 February 2017
Slide 2: B2Holding status update Q4 2016
B2Holding status update Q4 2016 Strong gross collection in all regions in Q4 Gross cash collection on portfolios above expectations across all regions – total NOK 556m (vs. NOK 415m Q4’15) Cash EBITDA NOK 349m (vs. NOK 240m Q4’15) Financial developments High activity level in portfolio acquisitions
Slide 3: 15 platforms, total gross ERC of NOK 9.5bn
15 platforms, total gross ERC of NOK 9.5bn Mature market Platforms The Nordics 15 Countries with portfolios Poland 15 Employees (FTEs) The Baltics 1,489 Total Gross ERC (NOKm) Platforms SEE 9,489 Growth market Portfolios only Note: Total gross ERC includes the Group’s share of portfolios owned by jo
Slide 4: Type of portfolios sold to debt purchasers
Type of portfolios sold to debt purchasers Asset class / Type of Portfolio Nordics incl. Finland Poland South East Europe Baltics Retail unsecured - smaller claims, typically consumer loans, credit cards debts etc. x x x x Retail Retail secured - mortgage secured portfolios x x x SME - small and med
Slide 5: Continued strong development in SEE, Poland still competitive
Continued strong development in SEE, Poland still competitive South East Europe (SEE) Poland Portfolio acquisitions (NOKm, purchase price) Portfolio acquisitions (NOKm, purchase price) 668 343 557 474 229 102 37 16 0 10 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Several transactions
Slide 6: Record high activity in the Nordics and the Baltics
Record high activity in the Nordics and the Baltics Finland and the Baltics Rest of Nordics Portfolio acquisitions (NOKm, purchase price) Portfolio acquisitions (NOKm, purchase price) 190 75 78 153 96 72 77 29 25 25 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Maintained strong acquis
Slide 7: B2H has entered Hungary and is entering Italy and Greece
B2H has entered Hungary and is entering Italy and Greece Hungary Italy Greece NPL transaction volume (EURm face value) NPL transaction volume (EURm face value) NPL transaction volume (EURm face value) Hungary 6,400 Italy 39 700 Greece 1 267 36 000 Other CEE 2 200 Total CEE 4 200 17 300 2 200 2 100 4
Slide 8: Continued good collection and operational performance
Continued good collection and operational performance - Record high cash EBITDA and portfolio acquisitions Financial summary Comments NOKm Q4’16 Q4’15 % change 2016 2015 % change Strong gross collection on Net operating revenues 416 345 21 % 1 396 1 076 30 % portfolios EBITDA 159 117 36 % 545 405 35
Slide 9: Financial highlights: Income statement
Financial highlights: Income statement Income statement Comments 2016 2015 NOKm Q4’16 Q4’15 External cost of services unaudited audited Interest income on purchased loan portfolios 365 291 1 206 915 provided – high activity in filing Revenue from external collection 29 34 104 104 of claims in Q4 Oth
Slide 10: SEE area continuing to drive gross cash collection growth
SEE area continuing to drive gross cash collection growth Bridge Q4’15-Q4’16: Gross cash collection on portfolios Comments NOK million SEE area shows high collection on both secured and unsecured 15 24 portfolios 556 24 High collection in Finland due to tax returns in December Continued growth in th
Slide 11: Record high Cash EBITDA for the quarter
Record high Cash EBITDA for the quarter EBIT Cash EBITDA NOK million NOK million Non-recurring items Non-recurring items As reported As reported 168 349 1 326 151 1 146 279 281 274 9 38 123 10 38 10 94 9 166 325 272 264 113 241 108 85 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 | 11
Slide 12: Higher cost mainly driven by investment in future cash flow through legal collection process
Higher cost mainly driven by investment in future cash flow through legal collection process Total operational costs per quarter Operational costs split NOK million NOK million Personnel costs Non-recurring costs 107 99 Recurring costs 93 86 81 Higher activity in SEE region - New country 265 establi
Slide 13: Balance sheet
Balance sheet Balance sheet Comments 2016 2015 NOKm Increase in non-performing loans unaudited audited Tangible and intangible assets 485 418 portfolio of 50% Other long-term financial assets 4 2 Number of claims 5.5m Non-performing loans portfolio 4,752 3,168 Loan receivables & other financial asse
Slide 14: Record quarter in terms of portfolio acquisitions
Record quarter in terms of portfolio acquisitions – Crossing the NOK 1bn mark for the first time Portfolio purchases Comments NOK million Record year and record quarter for portfolio acquisitions: 2014 2015 2016 - NOK 1.05bn in acquisitions in Q4’16, up from NOK 672m in Q4’15 - NOK 2.6bn in acquisit
Slide 15: Total Gross ERC of approx. NOK 9.5bn
Total Gross ERC of approx. NOK 9.5bn – 46% growth y-o-y Development in Total Gross ERC Total Gross ERC split by estimated collection time NOK million NOK million +46% 2,074 2,121 Rest of Nordics 9,489 1,942 Finland & Baltics Poland 1,178 8,186 SEE 8,014 687 451 325 229 248 149 86 6,822 6,490 1 2 3 4
Slide 16: Outlook
Outlook Expect continued collection improvement and growth in 2017 – but Q1 typically less eventful than Q4 Solid investment capacity through existing drawing facilities and strong cash flow Financial Continued focus on optimisation of capital structure going forward Focus on financial targets Seaso
Slide 17: Appendix
Agenda B2 HOLDING’ OE vn Se a B2HOLDING* | 17
Slide 18: Financial highlights: Cash flow
Financial highlights: Cash flow Consolidated cash flow 2016 2015 NOKm Q4’16 Q4’15 unaudited audited Cash EBITDA 349 240 1,210 829 Interest expenses paid -53 -31 -184 -91 Working capital and FX revaluation -62 -224 -110 -145 Income tax paid during the period -14 -5 -60 -27 Other adjustments 11 129 -5
Slide 19: 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 Net operating revenue NOK million NOK million +34% +21% 556 416 370 474 345 332 427 415 413 279 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 | 19
Slide 20: Segment financials – SEE
Segment financials – SEE Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +198% 189 668 557 474 63 0 10 Q4’15 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Key financials Comments NOKm Q4’15 Q4’16 % growth Strong development in collections Interest income on purchased loan
Slide 21: Segment financials – Poland
Segment financials – Poland Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million -11% 209 343 185 229 102 37 16 Q4’15 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Key financials Comments NOKm Q4’15 Q4’16 % growth Actual collection better than expectations Interest income on p
Slide 22: Segment financials – Finland and the Baltics
Segment financials – Finland and the Baltics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +21% 139 190 115 153 96 72 77 Q4’15 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Key financials Comments NOKm Q4’15 Q4’16 % growth Good operational performance Interest income on
Slide 23: Segment financials – Rest of Nordics
Segment financials – Rest of Nordics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +54% 42 75 78 27 25 29 25 Q4’15 Q4’16 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Key financials Comments NOKm Q4’15 Q4’16 % growth Continued good development in operational performance Inter
Slide 24: Portfolio composition
Portfolio composition Portfolio distribution by type (measured by purchase price)1) Portfolio distribution by type (measured by purchase price) Secured Unsecured 10% 11% Non-retail 17% secured 26% 23% Non-retail unsecured 3% Retail 3% Retail 90% 89% secured 83% unsecured 74% 72% 2013 2014 2015 Q4’16
Slide 25: B2Holding ASA contact details
B2Holding ASA | Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: [email protected]