B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q3 2019 Earnings Presentation
28 slides from B2 Impact Asa's earnings presentation, Nov 6, 2019
Slide 1: Third quarter presentation
Q3 Third quarter presentation Oslo, 6 November 2019
Slide 2: Four main focus areas going forward
Four main focus areas going forward 1 STRONGER FOCUS ON SECURED ▪ Organizational changes within secured including additional specialized resources and stronger head office involvement and oversight 2 IMPROVE EFFICIENCY IN OPERATIONS ▪ Automation of manual processes, digitalization and standardizatio
Slide 3: Highlights Q3 2019
Highlights Q3 2019 Key financials All-time high Gross Cash Total revenues Gross Cash Collections Cash EBITDA Collections and Cash EBITDA 880 1,386 1,062 Leverage ratio down from 3.2x (Q2 2019) to 3.0x verifying a NOK million solid debt service capacity NOK million NOK million Earnings per share NOK
Slide 4: Highlights Q3 2019
Highlights Q3 2019 Volume Servicing fees and other income increased by 9% to NOK 126m (NOK 115m Q3 2018) growth Portfolio purchases of NOK 1,231m (NOK 988 in Q3 2018) Total revenues up 18% to NOK 880m (NOK 746 in Q3 2018) Gross cash collections up 36% to NOK 1,386m (NOK 1,022m in Q3 2018) Effectiven
Slide 5: New Group organizational structure
New Group organizational structure Increase transparency and Improve execution and Strengthening the links risk management operational efficiency between Head Office and business units |5
Slide 6: Secured portfolios moving in the right direction
Secured portfolios moving in the right direction 29% Secured claims (corporate, SMEs and Actions in Q3 Results retail) share of the total ERC per Q3 2019 Ongoing reformation of the asset management teams with new Further progress and good interest regarding co-investment mindset and recovery experti
Slide 7: Unsecured collections performing well overall
Unsecured collections performing well overall 71% Unsecured retail B2Holding has entered into a partnership with Waterfall Asset Management for co-investments in portfolios share of the unsecured portfolios in the Nordic region total ERC per Q3 2019 - Co-investments increase the Group’s servicing fe
Slide 8: Well positioned to support the new strategic direction
Well positioned to support the new strategic direction Northern Europe Poland Western Europe Central Europe South East Europe Market position Top 3 Top 3 Top 10 Top 3 Top 3 ERC1) Q3’19 NOK 8.89bn NOK 3.70bn NOK 3.03bn NOK 5.81bn NOK 3.28bn Total NOK 24.7bn 36 % 15% 12% 24% 13% 1% 8% 31% 25% % of ERC
Slide 9: Capital structure with prudent leveraging
Capital structure with prudent leveraging Status 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% Leverage ratio down t
Slide 10: Financial performance
Financial performance | 10
Slide 11: Third quarter summary
Third quarter summary Financial summary NOKm 2019 Q3 2018 Q3 % change Total revenues excl. net credit gain/(loss) 845 799 6% Net credit gain/(loss) from purchased loan portfolios 36 -53 Total Revenues 880 746 18 % EBITDA 415 382 9% Operating profit (EBIT) 387 370 5% Profit margin 44 % 50 % Cash Reve
Slide 12: Strong quarterly result
Strong quarterly result Income statement Comments 2019 2018 2019 2018 2018 NOKm EBITDA includes non-recurring Q3 Q3 9 months 9 months Audited Interest income from purchased loan portfolios 703 680 2,021 1,861 2,537 items due to restructuring costs Net credit gain/loss purchased loan portfolios 36 -5
Slide 13: Increasing focus on costs and economies of scale
Increasing focus on costs and economies of scale Personnel costs1 External costs1 Other operating costs1 130 104 72 106 82 62 10% 8% 9% 7% 6% 5% NOKm NOKm NOKm Q3’18 Q3’19 Q3’18 Q3’19 Q3’18 Q3’19 CtC% Personnel costs CtC% External costs CtC% Other operating costs Cost to Collect 310 Cost to collect
Slide 14: Balance sheet
Balance sheet Balance sheet Comments NOKm 2019 Q3 2018 Q3 % change 2018 Audited Available investment capacity of Deferred tax asset 160 59 172 % 97 NOK 1.8bn1) plus monthly cash Goodwill 776 716 8% 785 Tangible and intangible assets 366 241 52 % 274 flow Investments in associated companies and joint
Slide 15: Quarterly purchase volume: NOK 1,231m in Q3
Quarterly purchase volume: NOK 1,231m in Q3 Portfolio purchase volumes1) Comments NOKm 2014 2015 2016 2017 2018 2019 Good purchase volume for a third quarter Portfolios mainly acquired in Northern Europe 2 273 Of the unsecured portfolios 61% were forward flow agreements 1 951 1 667 1 634 1 485 Key d
Slide 16: Diversified portfolio yielding stable cash flows
Diversified portfolio yielding stable cash flows Total gross ERC of NOK 24.7bn (20% growth y-o-y) Development in total gross ERC1) Portfolio details (total gross ERC)1)2) NOKm NOKm Claims (#): Face value1) (NOK): Geographical distribution Distribution by type SEE Poland ~7.6m ~161bn WE 13% 15% Secur
Slide 17: Q&A
Q&A
Slide 18: Financial highlights: Quarterly financial performance
Financial highlights: Quarterly financial performance Total ERC1) and portfolio purchases Total revenues NOKm NOKm 880 988 1,6342) 570 1,667 1,231 795 14% 746 753* 15% 2% 15% 3% 7% 2% 1% 379 22,595 24,708 84% 20,608 22,262 21,434 84% 90% 83% 31% 6% 63% Q3’18 Q4´18 Q1’19 Q2’19 Q3’19 Q3’18 Q4´18 Q1’19
Slide 19: Northern Europe (NE)
Northern Europe (NE) Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Strong operating performance NOKm 2019 Q3 2018 Q3 Change (%) Highlights & KPIs Gross revenues 245 178 38 % Portfolio purchase volume of NOK 594m in the quarter Net revalutation/actualisation 17 -2 Gross cash collect
Slide 20: Western Europe (WE)
Western Europe (WE) Spain, Italy, France and Portugal Steadily moving forward NOKm 2019 Q3 2018 Q3 Change (%) Highlights & KPIs Gross revenues 133 102 30 % Portfolio purchases of NOK 189m in the quarter Net revalutation/actualisation -5 -11 Gross cash collection in Q3 of NOK 157m Total revenues 128
Slide 21: Central Europe (CE)
Central Europe (CE) Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Maturing market NOKm 2019 Q3 2018 Q3 Change (%) Highlights & KPIs Gross revenues 257 208 24 % Portfolio purchases of NOK 264m in the quarter Net revalutation/actualisation 35 -26 Gross cash
Slide 22: South East Europe (SEE)
South East Europe (SEE) Romania, Bulgaria, Greece and Cyprus Increasing servicing revenues and good pipeline visibility NOKm 2019 Q3 2018 Q3 Change (%) Highlights & KPIs Gross revenues 113 145 -22 % Portfolio purchases of NOK 62m in the quarter Net revalutation/actualisation -19 -11 Gross cash colle
Slide 23: Poland (P)
Poland (P) Poland A mature but still high yield market NOKm 2019 Q3 2018 Q3 Change (%) Highlights & KPIs Gross revenues 167 167 0% Portfolio purchase volume of NOK 122m in the quarter Net revalutation/actualisation 8 -4 Gross collection in Q3 of NOK 239m Total revenues 175 163 7% Cash EBITDA was NOK
Slide 24: Group Executive Management
Group Executive Management Board of Directors Audit Committee CEO Erik J. Johnsen Internal Audit to be hired Chief Governance Officer Chief Legal & Compliance Officer Harald Henriksen Cecilie Kjelland HR Director Director M&A and IR Guro Becker Rasmus Hansson Chief Risk Officer Jeremi Bobowski Secur
Slide 25: 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 18 893 376 4,61 % 5 VERDIPAPIRFONDET DNB NORGE 15 437 347 3,77 % 6 K11 INVESTOR AS 9 766 680 2,38
Slide 26: 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 27: 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 28: 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]