Slide 1: Financial report: Unaudited results for 3 months ending 31 March 2024
Financial report Unaudited results for 3 months Ending 31 March 2024
Slide 2: Key results
Financial report Key results Business highlights Business performance Appendix
Slide 3: Key characteristics of Q1 2024
Financial report Key characteristics of Q1 2024 Lending Financial results +2% +26% 3M revenue growth y-o-y 3M consumer loan issuance growth y-o-y +11% +28% 3M EBITDA growth y-o-y 3M pawn loan issuance growth y-o-y +7% +12% 3M profit before tax 3M net loan portfolio growth since the start of 2024 gro
Slide 4: Key results
Financial report Key results Total loans issued Net loan portfolio m€ Q1 y-o-y Q1 y-o-y m€ Q1 y-o-y Q1 y-o-y In Q1 2024, the company continued to +25.5 +53% +22.1 +30% focus on a lower-risk client base, thus +8.9 +59% +1.0 +4% 95.6 steadily increasing loan issuance while 25.0 89.0 22.2 22.6 24.0 23.
Slide 5: Business highlights
Financial report Key results Business highlights Business performance Appendix
Slide 6: Launch of digital pawnshop in Latvia
Financial report Launch of digital pawnshop in Latvia This is the first fully remote pawn lending experience in the Baltics. The new service allows people to obtain a secured loan by completing an online application with no additional fees. The contract is signed remotely, and the goods are sent to
Slide 7: Digital VISA payment card in mobile app
Financial report Digital VISA payment card in mobile app Instantly accessible Banknote credit line on Banknote mobile app Made for online and in-store purchases Simple integration with Apple Pay and Google Wallet High security standards with built-in biometric security checks
Slide 8: Expansion of Banknote XL branches
Financial report Expansion of Banknote XL branches In April 2023, DelfinGroup opened the first circular economy store, Banknote XL, in Riga. After a successful first year of operations, it is planned to open two more XL concept stores in Daugavpils and Rēzekne during Q2 2024. The Banknote XL circula
Slide 9: Banknote marketing activities
Financial report Banknote marketing activities Recently, DelfinGroup has focused on promoting the circular economy and the Banknote brand, thus engaging in various marketing activities. As a result, the company is able to raise brand awareness and acquire new customers. Focus on social media marketi
Slide 10: Signet Bank initiates coverage of DelfinGroup stock
Financial report Signet Bank initiates coverage of DelfinGroup stock The initiated coverage provides insights into DelfinGroup results, market environment and stock valuation. Investors can access the independent evaluation of DelfinGroup to enhance their understanding of the company’s business mode
Slide 11: Corporate social responsibility
Financial report Corporate social responsibility DelfinGroup, in cooperation with the Children’s Hospital As part of Financial Literacy Week, in partnership with Bank Foundation, helped the Children’s Clinical University Hospital of Latvia, the DelfinGroup team educated seniors and (BKUS) to provide
Slide 12: Business performance
Financial report Key results Business highlights Business performance Appendix
Slide 13: Consumer loans
Consumer loans Financial report Consumer net loan portfolio Average loan* m€ Q1 y-o-y Q1 y-o-y € Q1 y-o-y Q1 y-o-y +24.2 +56% +19.6 +29% +411 +33% +344 +21% 87.3 2 013 81.6 1 840 1 837 76.9 1 765 67.7 71.7 1 669 54.8 61.2 1 258 1 337 1 432 1 533 The consumer lending portfolio 43.5 49.1 continued inc
Slide 14: Age analysis of consumer lending portfolio
Financial report Age analysis of consumer lending portfolio* 2.2% 2.6% 2.5% 3.0% 5.9% 6.5% Consumer loan portfolio quality remains stable with current loans of more than 87%. Company continue to focus on 89.4% 87.8% lower-risk lending clients to reduce portfolio expenses. Improved underwriting proce
Slide 15: Pawn loans
Pawn loans Financial report Pawn net loan portfolio* Average pawn loan amount m€ € Q1 y-o-y Q1 y-o-y Q1 y-o-y Q1 y-o-y +1.1 +44% +0.7 +19% +12 +16% +20 +22% 4.5 4.0 4.1 4.0 4.1 109 3.6 3.8 96 97 3.4 92 89 84 85 84 77 2.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2022 2023
Slide 16: Retail of pre-owned goods
Retail of pre-owned goods* Financial report Sale of pre-owned goods** m€ Q1 y-o-y Q1 y-o-y +1.0 +43% +0.3 +9% 3.9 4.0 3.5 3.6 3.3 3.2 3.3 2.6 2.3 Stable growth, taking into consideration quieter first months after Christmas and New Year celebrations. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 Retail
Slide 17: Sales split by product category
Financial report Sales split by product category Sales split by product category (3M 2024) 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. Jewelr
Slide 18: Diversification
Financial report Revenue by business segments 3M 2024 Diversification 12% Banknote consumer loans Although the most significant part of the VIZIA consumer loans 16% revenue stream comes from the 52% Pawn loans * consumer loan segment, we see great potential in gradually growing other ** Retail of pr
Slide 19: Consolidated income statement
Consolidated income statement Financial report 2024 2023 Change INCOME STATEMENT, EUR’000 Q1 Q1 % Total revenue 14,260 11,333 +26% Cost of sales -1,505 -1,372 +10% Credit loss expense -3,421 -2,466 +39%* Interest expenses and similar -2,561 -1,792 +43%** expenses Gross profit 6,773 5,702 +19% Sellin
Slide 20: Consolidated balance sheet
Consolidated balance sheet Financial report BALANCE SHEET, EUR’000 31.03.2024 31.12.2023 Change % Fixed and intangible assets 2,814 2,680 +5% Right-of-use assets 2,701 2,887 -6% Net loan portfolio 95,554 89,026 +7% Inventory and scrap 3,558 3,391 +5% Other assets ,893 1,149 -22% Cash 2,995 5,929 -49
Slide 21: Financial ratios
Financial ratios Financial report EBITDA margin* Equity ratio and adjusted equity ratio ROE** 24.9% 25.3% 23.5% 37.6% 37.6% 36.6% 36.6% 36.2% 41.3% 38.0% 39.8% 35.9% 36.1% 36.2% 25.3% 34.9% 37.2% 23.7% 23.5% 22.2% 21.8% 21.6% 26.4% 26.3% 29.7% 20.3% 20.6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 22: Capital structure
Financial report Capital structure Capital structure 31.03.2024 Bond financing track record 15.0 15.0 m€ 9% 21% 10.0 10.0 5.0 5.0 5.0 5.0 5.0 3.5 3.5 42% 28% 2013 2014 2016 2019 2020 2021 2021 2022 2023 2023 2023 Secured Unsecured Unsecured Secured Unsecured Unsecured Unsecured Unsecured Subordinate
Slide 23: Dividends
Financial report Dividends Dividend yield of 6.0%* Unique dividend distribution Dividend Dividend payment Payout EUR/share EUR total period date ratio*** proposal in Baltics Upon shareholders Q1 2024 0.0178** 807 720** 49.89%** approval** Q4 2023 16.04.2024 0.0143 648 898 49.99% Quarterly dividends
Slide 24: Share performance
Financial report Share performance Share price and turnover, € Share dynamics compared to indexes 1.7 180 000 115% 1.6 150 000 110% 105% 1.5 120 000 100% 1.4 90 000 95% 90% 1.3 60 000 85% 1.2 30 000 80% 1.1 0 75% 03.01.2022 03.07.2022 03.01.2023 03.07.2023 03.01.2024 03.01.2022 03.07.2022 03.01.2023
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 Key results Business highlights Business performance Appendix
Slide 27: Consolidated income statement
Consolidated income statement Financial report 2021 2022 2023 2024 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2* Q3* Q4 Q1 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 Cost of sales -620 -862 -721 -955 -780 -1,080 -1,179 -1,164 -1,372 -1,
Slide 28: Consolidated balance sheet
Consolidated balance sheet Financial report 2021* 2022* 2023 2024 BALANCE SHEET, EUR’000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 Right-of-use assets 3,281 3,145 3,013 2,973 2,915 2,773 2,783 2,636 2,69
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 Starting operations 9001 and 50001 Offering at in Lithuania certification Nasdaq Riga 50 branches New service – opened in major Online lending First ESG report remote purchasing cities of Latvia rebranding started published of pre-owned
Slide 31: Highly appreciated company
Financial report 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 Foundat
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 IR@delfingroup.lv (+371) 26 18 99 88 www.delfingroup.lv