Delfingroup As · OMXRSE:DGR1R
Delfingroup As — H1 2023 Earnings Presentation
34 slides from Delfingroup As's earnings presentation, Jun 30, 2023
Slide 1: Financial report: Unaudited results for 6 months ending 30 June 2023
Financial report Unaudited results for 6 months Ending 30 June 2023
Slide 2: Company highlights, Business performance, Appendix
Financial report Company highlights Business performance Appendix
Slide 3: Key characteristics
Financial report Key characteristics +27% +36% +16% H1 net loan portfolio growth +51% H1 consumer loan H1 pawn loan issuance H1 revenue growth y-o-y issuance y-o-y growth y-o-y since the start of 2023 +46% +11% H1 profit before 13 58k+ H1 EBITDA growth y-o-y years profitable operations active client
Slide 4: Key results
Financial report Key results Total loans issued Net loan portfolio m€ Q2 y-o-y Q2 y-o-y m€ Q2 y-o-y Q2 y-o-y +20.5 +61% +23.7 +44% Demand for lending products remain +9.3 +83% +1.4 +7% 73.5 78.1 solid. Slight decrease of loans issued 22.2 22.6 24.0 21.8 67.5 in Q2 2023 is a result of 20.4 60.4 54.4
Slide 5: Remote pre-owned item purchasing launched
Financial report Remote pre-owned item purchasing lauched Client benefits Reduction of carbon footprint Receive money quickly and remotely for items you don’t need Providing second life for your old items 1 500+ online applications since the launch in May pardod.banknote.lv
Slide 6: Banknote XL – largest circular economy store in the Baltics
Financial report Banknote XL – largest circular economy store in the Baltics Banknote XL opening in April 2023 The first large-scale Banknote branch 300 m2 total store area 4 500+ Pre-owned and new items for sale
Slide 7: Banknote comes closer to clients
Financial report Banknote comes closer to clients Active promotion of Banknote services during the summer in Latvia. Participation in public events to raise people’s awareness of Banknote circular economy products. Open doors days in Banknote branches in Ventspils, Kuldīga, Cēsis.
Slide 8: Growing shareholder base
Financial report Growing shareholder base Shareholder count 8 695 From 22 May until 2 June two largest DelfinGroup shareholders publicly offered 5 924 5 922 6 030 the company’s shares for a price of EUR 1.35. The public offer was oversubscribed by 21.10.2021 31.12.2021 31.12.2022 30.06.2023 1.12 tim
Slide 9: Bond activities
Financial report Bond activities Listing of 10 mEUR unsecured bonds on Nasdaq First North bond list in July 2023. 1 Bonds trade with coupon rate of 8.75% + 3M EURIBOR nominal value of EUR 1 000 and maturity 25 September 2024. 5 mEUR subordinated bond issue with 2 11.50% + 3M EURIBOR coupon rate to s
Slide 10: In focus - sustainability
Financial report In focus - sustainability DelfinGroup office and Received gold category We have joined Mission 0 45 Banknote branches award in Sustainability initiative to maintain zero run only with green Index 2023 organized by accidents in the workplace electricity. Institute for Corporate such
Slide 11: Business performance
Financial report Company highlights Business performance Appendix
Slide 12: Consumer loans
Consumer loans Financial report Consumer net loan portfolio Average loan* m€ Q2 y-o-y Q2 y-o-y € Q2 y-o-y Q2 y-o-y +18.8 +62% +22.5 +46% +310 +30% +428 +32% 71.7 1765 67.7 1669 1533 61.2 1432 54.8 1337 43.5 49.1 1027 1090 1182 1258 Eminent growth of consumer 39.7 30.4 34.9 lending segment. The net l
Slide 13: Age analysis of consumer lending portfolio
Financial report Age analysis of consumer lending portfolio* 1.7% 2.3% 3.8% 3.1% 6.9% 7.9% Loan portfolio quality remains solid in 2023. Focus on lower risk lending clients. 87.6% 86.7% Improved underwriting processes and risk policy. 31.12.2022. 30.06.2023. Loans not due yet Outstanding 1-30 days O
Slide 14: Pawn loans
Pawn loans Financial report Pawn net loan portfolio* Average pawn loan amount m€ € Q2 y-o-y Q2 y-o-y Q2 y-o-y Q2 y-o-y +1.3 +62% +0.7 +21% +14 +20% +0 +0% 4.0 4.1 3.6 3.8 92 89 3.4 84 85 84 74 76 77 70 2.4 2.5 2.6 2.1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2021 2022 202
Slide 15: Retail of pre-owned goods
Retail of pre-owned goods* Financial report Sale of pre-owned goods** m€ Q2 y-o-y Q2 y-o-y +0.5 +26% +0.9 +33% 3.5 3.3 3.2 3.3 2.6 2.3 2.4 2.3 2.1 33% growth in Q2 2023 year on year. Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 Segment sales remain over 3 mEUR per quarter over the last twelve Gross mar
Slide 16: Sales split by product category
Financial report Sales split by product category Sales split by product category (6M 2023) 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, such as smartphones, computers, TVs and jewelry.
Slide 17: Diversification
Financial report Diversification Revenue by business segments 6M 2023 19% Banknote consumer loans Although the most significant part of the VIZIA consumer loans revenue stream comes from the consumer loan segment, we see great 48% 13% Pawn loans potential in gradually growing other DelfinGroup segme
Slide 18: Consolidated income statement
Consolidated income statement Financial report 2023 2022 Change 2023 2022 Change INCOME STATEMENT, EUR’000 Q2 Q2* % 6M 6M* % Total revenue 12,275 8,095 +52% 23,679 15,682 +51% Cost of sales -1,401 -1,080 +30% -2,845 -1,860 +53% Credit loss expense -2,769 -1,082 +156%** -5,236 -2,492 +110%** Interest
Slide 19: Consolidated balance sheet
Consolidated balance sheet Financial report BALANCE SHEET, EUR’000 30.06.2023 31.12.2022* Change % Fixed and intangible assets 1,823 1,470 +24% Right-of-use assets 2,712 2,636 +3% Net loan portfolio 78,099 67,518 +16% Inventory and scrap 4,662 2,290 +104% Other assets 1,105 875 +26% Cash 3,013 2,369
Slide 20: Financial ratios
Financial ratios Financial report EBITDA margin* Equity ratio ROE** 33.5% 32.3% 40.3% 39.5% 44.5% 41.3% 38.0% 37.6% 37.6% 37.6% 36.6% 36.6% 25.3% 23.7% 23.5% 40.0% 35.9% 22.2% 21.8% 31.4% 34.9% 37.2% 18.5% 26.4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2
Slide 21: Capital structure
Financial report Capital structure Capital structure 30.06.2023 Bond financing track record 10.0 10.0 m€ 24% 29% 5.0 5.0 5.0 5.0 * 3.5 3.5 47% 2013 2014 2016 2019 2020 2021 2021 2022 Secured Unsecured Unsecured Secured Unsecured Unsecured Unsecured Unsecured 14% 15% 14% 14% 12% 9.75% 8% 8.75% + Equi
Slide 22: New bond issues
Financial report New bond issues Subordinated unsecured bonds Unsecured bonds ISIN LV0000802700 LV0000802718 Issue size EUR 5,000,000 EUR 15,000,000 Nominal value EUR 1,000 EUR 1,000 Annual coupon 11.50% + 3M EURIBOR 9.00% + 3M EURIBOR Coupon frequency Monthly Monthly Maturity 25 July 2028 25 Februa
Slide 23: Dividends
Financial report Dividends Dividend yield of 5.4%* Unique dividend distribution proposal in Baltics Dividend Dividend payment EUR/share EUR total Payout period date ratio*** Upon shareholders Q2 2023 0.0195** 883 732** 49.95%** approval** Q1 2023 30.06.2023 0.0177 802 157 49.73% Quarterly dividends
Slide 24: Share performance
Financial report Share performance Share price, € Share dynamics compared to indexes 1.6 110% 1.55 105% 1.5 100% 1.45 95% 1.4 90% 1.35 85% 1.3 1.25 80% 1.2 75% 03.01.2022 03.05.2022 03.09.2022 03.01.2023 03.05.2023 03.01.2022 03.05.2022 03.09.2022 03.01.2023 03.05.2023 DGR1R – DelfinGroup Financial
Slide 25: Follow our news in e-mail and social networks
Financial report Follow our news in e-mail and social networks Visit our website to subscribe to the newsletter www.delfingroup.lv
Slide 26: Appendix
Financial report Company highlights Business performance Appendix
Slide 27: Consolidated income statement
Consolidated income statement Financial report 2020* 2021* 2022* 2023 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total revenue 5,877 5,028 5,605 6,782 5,890 5,765 6,335 7,199 7,586 8,095 9,587 10,507 11,404 12,275 Cost of sales -1072 -794 -810 -903 -620 -862 -721 -955 -780 -1,0
Slide 28: Consolidated balance sheet
Consolidated balance sheet Financial report 2020* 2021* 2022* 2023 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fixed and intangible assets 748 859 927 1,038 864 818 789 1,201 1,301 1,351 1,387 1,470 1,595 1,823 Right-of-use assets 1,950 3,056 2,927 3,194 3,281 3,145 3,013 2,973
Slide 29: Sustainability
Financial report DelfinGroup ESG report for 2022 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 Latvi
Slide 30: Historic timeline
Financial report Historic timeline Received ISO Initial Public 9001 and 50001 Offering at certification Corporate identity Nasdaq Riga 50 branches First 100 000 changed to opened in major customers Online lending First ESG report cities of Latvia registered rebranding started published 2009 2010 201
Slide 31: Highly appreciated company
Financial report Highly appreciated company CV-Online Latvia State Revenue Service Latvian Traders The Society Latvian Corporate Institute for Corporate Association Integration Foundation Governance Advisory Sustainability and Board Responsibility Top employer In-Depth Best Trader of Latvia Family-F
Slide 32: Definitions for Alternative Performance Measures
Financial report 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 f
Slide 33: Disclaimer
Financial report Disclaimer This presentation is of selective nature and is made to provide an overview of the Company’s (AS DelfinGroup and its subsidiaries) business. Unless stated otherwise, this presentation shows information from consolidated perspective. Facts and information used in this pres
Slide 34: AS DelfinGroup
AS DelfinGroup Skanstes street 50A Riga, Latvia, LV-1013 [email protected] (+371) 26 18 99 88 www.delfingroup.lv