B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Q1 2018 Earnings Presentation
27 slides from B2 Impact Asa's earnings presentation, May 25, 2018
Slide 1: Q1 2018 presentation
Q1 2018 presentation Oslo, 25 May 2018
Slide 2: B2Holding status update Q1 2018
B2Holding status update Q1 2018 Overview All-time high gross cash collection of NOK 775m up 35% (NOK 575m in Q1 2017) Cash EBITDA increased by 46% to NOK 581m (NOK 399m in Q1 2017) Operating profit increased by 53% to NOK 326m (NOK 213m in Q1 2017) after record strong operations Financial High portf
Slide 3: A leading pan-European debt purchaser
A leading pan-European debt purchaser Northern Europe Poland 18 % Finland Poland Estonia Sweden Central Europe 27 % 26 % Latvia Croatia Lithuania NE Slovenia Denmark Serbia Norway P Czech Rep. Lithuania WE B&H CE SEE Montenegro Hungary Western Europe 9% France 20 % Southeastern Europe1 Italy Romania
Slide 4: Strong financial performance
Strong financial performance Total ERC and portfolio acquisitions Total revenues NOKm NOKm 622 646 340 1,120 702 1,951 1,485 8% 8% 1% 519 3% 9% 482 6% 6% 459 5% 6% 6% 4% 5% 3% 6% 3% 18,116 82% 82% 15,264 85% 11,881 12,191 86% 85% 9,852 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Tota
Slide 5: Strict code of conduct across all geographies
Strict code of conduct across all geographies Significant Clearly defined Collection activity Complaints countries ranked Data protection statute of Collection activity recording and management Current / past Regulatory by ERC Specific license system in place limitation limitations 1 monitoring proc
Slide 6: Financial performance
Financial performance |6
Slide 7: Another record quarter across the board
Another record quarter across the board Financial summary Comments 2018 2017 % NOKm Record-high portfolio purchase Q1 Q1 change Total operating revenues1) volume for first quarter 646 459 41 % EBITDA 338 221 53 % Operating profit (EBIT) 326 213 53 % Profit margin remains high in Q1 Profit margin 50
Slide 8: Financial highlights: Income statement
Financial highlights: Income statement Income statement Comments 2018 2017 2017 NOKm Gross cash collection in line with Q1 Q1 audited Revenue from purchased loan portfolios 532 397 1,757 curves and a minor revaluation Profit from shares, associated companies and JVs 9 13 70 of both secured and unsec
Slide 9: Focus on cost and economies of scale – cost of collect trending down
Focus on cost and economies of scale – cost of collect trending down Operational costs split Total operational costs per quarter NOKm NOKm Personnel costs 155 153 311 308 119 123 Personnel 94 costs at Q4 level - Verifica included for the full quarter 256 258 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 238 Externa
Slide 10: Balance sheet
Balance sheet Balance sheet Comments 2018 2017 2017 NOKm Q1 Q1 audited Increase in purchased loan Tangible and intangible assets 213 93 201 portfolios of 106% LTM Goodwill 730 409 522 Purchased loan portfolios 10,418 5,051 8,732 Goodwill in connection with Other long-term financial assets 524 519 61
Slide 11: Record-high purchase volume: NOK 1.48bn in Q1
Record-high purchase volume: NOK 1.48bn in Q1 Portfolio purchase volumes Comments NOKm Record strong volume for a first quarter 2014 2015 2016 2017 2018 - 337% increase compared to Q1 2017 - EUR 120 previously announced to be closed in Q2 Portfolios acquired in all major markets, 98% unsecured 1 951
Slide 12: Highly diversified portfolio yielding stable and predictable cash flows
Highly diversified portfolio yielding stable and predictable cash flows: Total gross ERC of approx. NOK 18.1bn (84% growth y-o-y) Development in total gross ERC Portfolio details (total gross ERC) NOKm NOKm Claims (#): Face value (NOK): Geography distribution Distribution by type ~6.49m ~133bn SEE 2
Slide 13: Estimated remaining collection year 1 – secured and unsecured
Estimated remaining collection year 1 – secured and unsecured ERC Comments Secured Q2 18 Q3 18 Q4 18 Q1 19 Year 1 Secured collection with larger Poland 6 9 8 9 33 variation quarter by quarter NE 3 3 3 4 13 CE 262 525 322 276 1,386 WE 68 89 112 35 305 SEE 69 76 84 87 315 Unsecured collection more Tot
Slide 14: Segment financials: Northern Europe (NE)
Segment financials: Northern Europe (NE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 269m in the quarter 687 Gross cash collection NOK 238m - Net credit loss of NOK 16.7m mainly due to collection delays in 368 Finland 269 237 161 Operating margin 46% Cost to collect 18%
Slide 15: Segment financials: Western Europe (WE)
Segment financials: Western Europe (WE) Comments Purchased loan portfolios NOKm Western Europe established as a new region as of Q1 2018 202 Portfolio purchase volume of NOK 11m in the quarter Gross cash collection in line with curve 94 63 Two new platforms: 19 11 - Entered France through the acquis
Slide 16: Segment financials: Poland (P)
Segment financials: Poland (P) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 87m in the quarter 188 Gross collection of NOK 228m - Collection in line with curve - NOK -4m revaluation of the curve 83 87 57 Cost to collect is 32%. Some quarterly variations expected 22 Compet
Slide 17: Segment financials: Central Europe (CE)
Segment financials: Central Europe (CE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 257m in the quarter 949 Gross collection of NOK 198m and collection is in line with curves Cost to collect is 15%, some quarterly variations expected 257 112 45 50 Strong portfolio pipeli
Slide 18: Segment financials: Southeastern Europe (SEE)
Segment financials: Southeastern Europe (SEE) Comments Purchased loan portfolios NOKm Portfolio purchase volume of NOK 861m in the quarter 861 Gross cash collection NOK 101m, NOK 9m over curve All-time high collection, strong operational performance 330 351 Cost to collect is 39% 59 36 Q1’17 Q2’17 Q
Slide 19: Outlook
Outlook Expected continued growth in 2018 – strong focus on operational performance Well positioned for further growth with platforms in 23 markets Financial Significant investment capacity of NOK 4.1bn and covenant headroom for future growth Focus on financial targets Strong pipeline within both se
Slide 20: Q&A
Q&A | 20
Slide 21: Organisational overview
Organisational overview Olav Dalen Zahl CEO Erik J. Johnsen Danckert Mellbye Jeremi Bobowski Harald Henriksen Thor Christian Moen Rasmus Hansson Chief Financial Chief Org & Chief Investment Chief Compliance Chief Legal M&A Director Officer Improvement Officer Officer Officer Officer Northern Europe
Slide 22: Financial highlights: Cash flow
Financial highlights: Cash flow Consolidated cash flow Comments 2018 2017 2017 NOKm Net cash flow from operating Q1 Q1 Full year Profit for the period before tax 202 138 648 activities increases Amortisation/revaluation of purchased loan portfolios 243 178 795 Adjustment other non-cash items 15 7 36
Slide 23: Record gross collection: +35% to NOK 775m
Record gross collection: +35% to NOK 775m Bridge Q1’17-Q1’18: Gross cash collection on portfolios Comments NOKm +35% Strong gross cash collection 775 52 Solid growth in NE (+60%) and 20 SEE (+106%) 9 31 89 Expect continued strong growth in CE and SEE going forward 575 Q1’17 NE CE WE Poland SEE Q1’18
Slide 24: Seventh consecutive record quarter in terms of cash EBITDA
Seventh consecutive record quarter in terms of cash EBITDA EBIT Cash EBITDA NOKm NOKm +53% +46% 326 581 301 524 472 253 420 399 213 217 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 | 24
Slide 25: 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 Total operating revenue NOKm NOKm +35% +41% 775 646 622 723 650 519 604 575 482 459 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 | 25
Slide 26: 20 largest shareholders
20 largest shareholders # Shareholder No of shares Percentage 1 PRIORITET GROUP AB 51 118 519 12,58 % 2 RASMUSSENGRUPPEN AS 43 073 236 10,60 % 3 VALSET INVEST AS 24 500 000 6,03 % 4 STENSHAGEN INVEST AS 17 393 376 4,28 % 5 INDIGO INVEST AS 16 383 360 4,03 % 6 VERDIPAPIRFONDET DNB NORGE (IV) 11 093 2
Slide 27: Stortingsgaten 22, Oslo contact details
Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: [email protected]