Delfingroup As · OMXRSE:DGR1R
Delfingroup As — 9M 2024 Earnings Presentation
34 slides from Delfingroup As's earnings presentation, November 2024
Slide 1: Financial report
Financial report Unaudited results for 9 months Ending 30 September 2024
Slide 2: Key results
Key results Business highlights Business performance Appendix
Slide 3: Key results
Key results Total loans issued Net loan portfolio m€ Q3 y-o-y Q3 y-o-y m€ Q3 y-o-y Q3 y-o-y Loan issuance in Q3 2024 continued +24.2 +40% +23.2 +27% to increase once again, reaching the +1.3 +6% +3.1 +13% 107.7 record-high level of EUR 26.5 million, 26.1 26.5 101.5 22.2 22.6 24.0 21.8 23.5 23.1 25.0
Slide 4: Key characteristics for 9M 2024
Key characteristics for 9M 2024 Business results Financial results +13% +9% 9M pawn loan issuance +25% +24% 9M consumer loan 9M revenue growth 9M EBITDA growth issuance growth y-o-y growth y-o-y y-o-y y-o-y +21% 9M net loan portfolio +14% 9M revenue for retail +14% 9M profit before tax growth since
Slide 5: Business highlights
Key results Business highlights Business performance Appendix
Slide 6: Public bond issue
Public bond issue From September 2 to 16, DelfinGroup organized its first-ever public bond issue, which resulted in an oversubscription of 1.5 times. EUR 15 million EUR 22.3 million Total funding attracted Total demand reached 2 728 61% Investors participated Of existing bonds were exchanged Nasdaq
Slide 7: Capital markets & funding highlights
Capital markets & funding highlights • Successful redemption of existing bonds ISIN LV0000850055 for EUR 10 million. • Total bondholder amount reaches 3 000. BONDS • Plan to list bonds ISIN LV0000860146 and LV0000802700 on Nasdaq First North in November 2024. • DelfinGroup raised 4.9 million euros f
Slide 8: Expansion in Lithuania
Expansion in Lithuania Preparation to launch consumer lending • In Q3, DelfinGroup received a licence from the Bank of Lithuania to provide consumer lending services. • Strong focus on launching the product in Lithuania. It is expected to start providing the service in Q4 2024. • Currently, consumer
Slide 9: Improved online store
Improved online store The Banknote online store is a cornerstone for further growth of the retail business segment. Over the last 65 000+ 30 000+ Goods available for sale Units sold via online store year, it has reached a significant sales increase. Renewed online store design according to latest st
Slide 10: Branch network development in Latvia
Branch network development in Latvia Efficiency of the branch network has been set as a focus in Latvia to secure sustainable business operations. Opening of new branches and expansion of Banknote XL network: 1 2 3 New Banknote XL New branch in Balvi, Relocation of an branch in Rēzekne, Brīvības iel
Slide 11: Partnership with Mediāna
Partnership with Mediāna To support financial literacy, the popularity of capital markets and circular economy principles in Latvia, DelfinGroup has become the general sponsor of Mediāna. Mediāna is a multi-media platform where people can find current news, interviews and commentary on finance, econ
Slide 12: Business performance
Key results Business highlights Business performance Appendix
Slide 13: Consumer loans
Consumer loans Consumer net loan portfolio Average loan* m€ Q3 y-o-y Q3 y-o-y € Q3 y-o-y Q3 y-o-y The consumer lending portfolio +22.0 +40% +22.0 +29% +408 +28% +361 +20% continued increasing, as did the average loan amount and term. At 2 013 2 119 2 201 the end of Q3 2024, the net loan 98.8 87.3 92
Slide 14: Age analysis of consumer lending portfolio
Age analysis of consumer lending portfolio* 2.2% 4.5% 2.5% • Consumer loan portfolio quality remains stable 2.5% 5.9% 6.8% with current loans of more than 86%. • Focus on lower-risk lending clients to reduce portfolio expenses and sustain high-level portfolio quality. 89.4% • A slight increase of lo
Slide 15: Pawn loans
Pawn loans Pawn net loan portfolio* m€ Q3 y-o-y Q3 y-o-y +0.4 +11% +0.7 +18% 4.6 4.8 4.5 4.0 4.1 4.0 4.1 3.6 3.8 • The pawn lending segment continues to show stable results. The pawn loan portfolio has increased 17% in the last nine months. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 • Pawn loan issua
Slide 16: Retail of pre-owned goods
Retail of pre-owned goods* Sale of pre-owned goods m€ Q3 y-o-y Q3 y-o-y +0.6 +18% +0.6 +15% 4.5 3.9 4.0 4.0 3.5 3.6 3.3 3.2 3.3 • Stable and consistent growth has been achieved in the retail segment by promoting the circular economy principles in Latvia and Lithuania. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022
Slide 17: Sales split by product category
Sales split by product category Sales split by product category (9M 2024) o er ther tools , a dio, omp ter video, e elry martphones e ipment photo Clients have access to a wide range of pre-owned goods at Banknote online store and branch network. The most demanded product categories are electronics,
Slide 18: Diversification
Revenue by business segments 9M 2024 Diversification 11% Banknote consumer loans Although the most significant part of the 16% VIZIA consumer loans revenue stream comes from the 53% Pawn loans * consumer loan segment, we see great potential in gradually growing other ** Retail of pre-owned goods Del
Slide 19: Consolidated income statement
Consolidated income statement 2024 2023 Change 2024 2023 Change INCOME STATEMENT, EUR’000 Q3 Q3 % 9M 9M % Total revenue 16,503 13,208 +25% 45,601 36,511 +25% Cost of sales -1,983 -1,641 +21% -4,653 -4,109 +13% Credit loss expense -4,072 -2,843 +43%* -11,044 -8,079 +37%* Interest expenses and similar
Slide 20: Consolidated balance sheet
Consolidated balance sheet BALANCE SHEET, EUR’000 30.09.2024 31.12.2023 Change % Fixed and intangible assets 3,192 2,680 +19% Right-of-use assets 2,736 2,887 -5% Net loan portfolio 107,734 89,026 +21% Inventory and scrap 3,905 3,391 +15% Other assets 1,370 1,149 +19% Cash 5,546 5,929 -6% TOTAL ASSET
Slide 21: Financial ratios
Financial ratios EBITDA margin* Equity ratio and adjusted equity ratio ROE** 26.3% 26.5% 24.9% 25.3% 23.5% 36.6% 36.6% 36.2% 35.9% 36.1% 36.2% 36.2% 35.8% 38.0% 34.9% 37.2% 39.8% 23.5% 22.2% 33.3% 33.8% 21.8% 21.6% 26.3% 29.7% 20.3% 20.6% 19.6% 19.3% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 22: Capital structure
Capital structure Capital structure 30.09.2024 Bond financing track record* 15.0 15.0 15.0 m€ 11% 21% 10.0 10.0 5.0 5.0 5.0 5.0 5.0 ** 4.0 3.5 3.5 22% 46% 2013 2014 2016 2019 2020 2021 2021 2022 2023 2023 2023 2024 2024 Secured Unsecured Unsecured Secured Unsecured Unsecured Unsecured Unsecured Subo
Slide 23: Dividends
Dividends Dividend yield of 7.6%* Dividend Dividend payment Payout EUR/share EUR total Unique dividend distribution period date ratio*** Upon shareholders proposal in Baltics Q3 2024 approval** 0.0210** 953 535** 49.79%** Q2 2024 01.10.2024 0.0202 916 626 49.76% Q1 2024 14.06.2024 0.0178 807 720 49.
Slide 24: Share performance
Share performance Share price and turnover, € Share dynamics compared to indexes 1.6 180 000 110% 1.5 150 000 105% 1.4 100% 1.3 120 000 1.2 95% 1.1 90 000 90% 1 85% 60 000 0.9 80% 0.8 30 000 0.7 75% 0.6 0 70% 02.01.2024 02.04.2024 02.07.2024 02.10.2024 02.01.2024 02.04.2024 02.07.2024 02.10.2024 DGR
Slide 25: Follow our news in e-mail and social networks
Follow our news in e-mail and social networks Visit our website to subscribe to the newsletter www.delfingroup.lv Icon Icon Logo, icon Description automatically generated Description automatically generated Description automatically generated
Slide 26: Appendix
Key results Business highlights Business performance Appendix
Slide 27: Consolidated income statement
Consolidated income statement 2021 2022 2023 2024 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2* Q3* Q4 Q1 Q2 Q3 Total revenue 5,890 5,765 6,335 7,199 7,586 8,095 9,587 10,507 11,333 11,970 13,208 13,912 14,260 14,838 16,503 Cost of sales -620 -862 -721 -955 -780 -1,080 -1,179 -1,164 -1,372
Slide 28: Consolidated balance sheet
Consolidated balance sheet 2021* 2022* 2023 2024 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Fixed and intangible assets 864 818 789 1,201 1,301 1,351 1,387 1,470 1,595 1,823 2,150 2,680 2,814 3,032 3,192 Right-of-use assets 3,281 3,145 3,013 2,973 2,915 2,773 2,783 2,636 2,6
Slide 29: Sustainability
DelfinGroup ESG report for 2023 available here. Sustainability Promotion of circular economy Inclusive society Sustainable corporate governance • Prolonged life-cycle of consumer • The most geographically available financial • 3 independent members of the goods. institution in Latvia. 90+ branches a
Slide 30: Historic timeline
Historic timeline Launch of digital pawnshop and 120 virtual card with credit line Corporate identity 100 changed to Joined the global Net loan portfolio, millions EUR lending marketplace platform 80 Initial Public Offering at Nasdaq Riga First bonds listed on Launch of online 60 First pawn lending
Slide 31: Highly appreciated company
Highly appreciated company CV-Online Latvia Latvian Traders Association Institute for Corporate Sustainability and Responsibility Top employer Best Trader of Latvia Gold category in Sustainability Index 2023 Latvian Corporate Governance The Society Advisory Board Integration Foundation Bureau Verita
Slide 32: Definitions for Alternative Performance Measures
Definitions for Alternative Performance Measures EBITDA Earnings before interest, taxes, depreciation and amortization = (Profit before tax) + (Interest Return on Equity (ROE) expenses and similar expenses) + (Rights of used assets depreciation) + (Depreciation of fixed Net profit for the period/mon
Slide 33: Disclaimer
Disclaimer This presentation is of selective nature and is made to provide an overview of the ompany’s (AS DelfinGroup and its subsidiaries) business. Unless stated otherwise, this presentation shows information from consolidated perspective. Facts and information used in this presentation might be
Slide 34: AS DelfinGroup
AS DelfinGroup Skanstes street 50A Riga, Latvia, LV-1013 [email protected] (+371) 26 18 99 88 www.delfingroup.lv