B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q3 2016 Earnings Presentation
24 slides from B2 Impact Asa's earnings presentation, Nov 25, 2016
Slide 1: Q3 2016 presentation
Q3 2016 presentation -- Oslo, 25 November 2016
Slide 2: B2Holding status update Q3 2016
B2Holding status update Q3 2016 Continued to improve operational performance, and has further strengthened its position in key markets in Q3 Strong financial performance during the quarter with cash EBITDA and EBIT up 40% and 49% yoy, respectively Successfully issued a EUR 175 million unsecured bond
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 ~8bn in collection Mature market Platforms The Nordics 12 Countries with portfolios Poland 15 Employees The Baltics 1,430 Total Gross ERC (NOKm) Four separate platforms under Platforms SEE 8,014 Portfolios only Gro
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 Q3'16
Financial highlights as of Q3’16 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) +42% Q3’16: Q3’16 LTM: -39% 924 1,314 206 10.5% 125 45.9
Slide 6: Currency is affecting net profit
Currency is affecting net profit Comments Net profit adjusted for extraordinary items and FX Currency effect comes from operational hedge, external and Adjusted net profit Q1-Q3 2016 (NOK) internal funding exposure: - Net currency exposure at parent company level EUR 159 million 199 - Funding of sub
Slide 7: Acquired portfolios in all markets present in Q3, majority in the Nordics
Acquired portfolios in all markets present in Q3, majority in the Nordics Portfolio purchases Comments NOK million Along with Q1, Q3 is traditionally a less active portfolio 2014 2015 2016 purchase period, as sellers usually wait until half-year end or year-end to dispose of NPLs - Large part of pip
Slide 8: Total Gross ERC of approx. NOK 8bn – affected by FX
Total Gross ERC of approx. NOK 8bn – affected by FX Development in Total Gross ERC Total Gross ERC split by estimated collection time NOK million NOK million 8,186 1,763 Rest of Nordics 8,014 1,657 1,539 Finland & Baltics 1,066 Poland 6,822 SEE 6,490 622 426 299 231 206 130 76 1 2 3 4 5 6 7 8 9 10 >
Slide 9: Over 30% growth y-o-y in gross cash collection and net operating revenues
Over 30% growth y-o-y in gross cash collection and net operating revenues Gross cash collection on portfolios Net operating revenue NOK million NOK million +35% +33% 474 370 345 427 332 415 413 352 278 279 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 |9
Slide 10: The SEE area is driving gross cash collection growth
The SEE area is driving gross cash collection growth Gross cash collection on portfolios bridge Comments NOK million Strong operational performance 474 in the SEE-region 7 6 Actual cash collection on secured portfolios progressing according to predictions 106 352 3 Q3’15 Poland SEE Finland & Baltics
Slide 11: 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 Recurring costs 93 86 72 81 Lower personnel costs - 228 even including DCA full quarter 211 38 10 196 Q3’15 Q4’15 Q1’16 Q2’16 Q3’
Slide 12: Portfolio composition
Portfolio composition Portfolio distribution by type (measured by purchase price)1) Portfolio distribution by type (measured by purchase price) NOK million NOK million Secured Unsecured 10% 11% 17% Corporate 27% 25% 90% 89% 83% Retail 73% 75% 2013 2014 2015 Q3’16 1) 2013 and 2014 extrapolated based
Slide 13: 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 +49% +40% 168 326 1 1 146 279 281 274 9 10 38 38 123 233 113 10 94 9 166 325 272 264 233 241 113 108 113 85 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q3’15 Q4’15 Q
Slide 14: Financial highlights: Income statement
Financial highlights: Income statement Income statement Comments 2015 NOKm Q3’15 Q2’16 Q3’16 Strong growth in cash revenue audited Interest income on purchased loan portfolios 239 915 284 323 Revenue from external collection 23 104 26 26 Strong growth in operating profit Other operating revenues 16
Slide 15: Financial highlights: Balance sheet
Financial highlights: Balance sheet Balance sheet Comments 2015 NOKm Q3’15 Q2’16 Q3’16 Non performing loans FX effect audited Tangible and intangible assets 419 418 499 475 of NOK 109 million Other long-term financial assets 2 2 2 2 Takto increases the lending Non-performing loans portfolio 2,554 3,
Slide 16: Financial highlights: Cash flow
Financial highlights: Cash flow Consolidated cash flow 2015 NOKm Q3’15 Q2’16 Q3’16 audited Cash EBITDA 233 829 264 325 Interest expenses paid -24 -91 -39 -45 Working capital and FX revaluation -56 -145 15 -5 Income tax paid during the period -5 -27 -35 -6 Other adjustments 44 24 21 -60 Cash flow fro
Slide 17: Outlook
Outlook Highlights Strong collection in beginning of Q4 2016 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 With the continued push for banks to delever and
Slide 18: Agenda
Agenda B2 HOLDING’ OE vn Se a B2HOLDING* | 18
Slide 19: Segment financials – Poland
Segment financials – Poland Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +1% 190 193 1,239 343 102 37 16 Q3’15 Q3’16 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Key financials Comments NOKm Q3’15 Q3’16 % growth Adam Parfiniewicz new CEO if Ultimo Interest income on purchas
Slide 20: Segment financials – SEE
Segment financials – SEE Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +250% 149 668 474 43 47 10 0 Q3’15 Q3’16 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Key financials Comments NOKm Q3’15 Q3’16 % growth Strong development in collections Interest income on purchased loans
Slide 21: Segment financials – Finland and the Baltics
Segment financials – Finland and the Baltics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +6% 91 97 153 111 96 72 77 Q3’15 Q3’16 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Key financials Comments NOKm Q3’15 Q3’16 % growth Good operational performance Interest income on pu
Slide 22: Segment financials – Rest of the Nordics
Segment financials – Rest of the Nordics Gross cash collection on portfolios Purchased loan portfolios NOK million NOK million +25% 35 75 28 25 29 25 16 Q3’15 Q3’16 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Key financials Comments NOKm Q3’15 Q3’16 % growth Continued good development operational performance Inte
Slide 23: 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 24: 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]