B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q3 2021 Earnings Presentation
29 slides from B2 Impact ASA's earnings presentation, 2021
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Highlights Q3 2021
Highlights Q3 2021 Operations – Unsecured collections remained solid and continued the positive trend – Secured recoveries above expectations for the quarter – The positive trend for REOs sale continued Effectiveness & efficiency – Collection improvements implemented in previous quarters showing eff
Slide 3: Key figures Q3 2021 (NOKm)
Key figures Q3 2021 (NOKm) Net revenues Gross Collections1) Cash EBITDA2) 792 1,269 931 813 1,636 932 Net profit Portfolio purchases Leverage ratio 162 237 2.4x 128 264 3.2x 3 B2Holding ASA Q3 2021 results presentation Comparable numbers for Q3 2020 below. 1) Includes the Group’s share of gross coll
Slide 4: Business update
Business update Market pipeline increasing Funding and investments – More activity observed; expect 2022 to become a more – Currently in advanced discussions with reputable normalized year institutional investment partners aiming to establish a co-investment partnership predominantly for – Governmen
Slide 5: ESG focus showing results
ESG focus showing results Substantially improved the ESG Risk rating from Sustainalytics, ESG Risk rating 9.3 ranking us at the top of our industry and within the top 1 % of rated companies globally – B2Holding is considered to be at negligible ESG risk: Negligible Risk • Low exposure of material ES
Slide 6: Financial performance
Financial performance B HOLDING”
Slide 7: Third quarter 2021 summary
Third quarter 2021 summary 2021 2020 % 2021 2020 % 2020 – Strong unsecured collections at NOK million Q3 Q3 Δ YTD YTD Δ Full Year 103.3% of the latest forecast Net revenues 792 813 -3% 2,310 2,264 2% 3,095 Adj. EBIT 385 369 4% 1,037 883 17% 1,246 – Secured recoveries above the Adj. EBIT % 49% 45% 3
Slide 8: Collection Performance
Collection Performance Unsecured collection performance REOs sold 1000 923 927 934 949 110% +30% Book Value 905 102% 103% 105% 159 Sales Proceeds 800 102% 101% 101% 100% 122 600 100% 100% 100% 100% 100% 95% 400 +51% 90% 40 200 85% 27 0 80% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 L12M Q3 2021 Collection Perfor
Slide 9: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q3 2021 Additional investment capacity Cash earnings NOKm NOKm Increase 669 Decrease 931 27 Total 516 503 438 437 - 237 264 237 204 192 220 -9 711 - 208 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 503 Deleveraging Lev.ratio L
Slide 10: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity L12M Gross Collections 1) L12M Operating expenses 2) – Accumulated savings compared to Q1 2020 of NOK 402m 6,000 2,000 5,851 – Sustained lower cost base despite high collection activity 5,715 5,720 5,660 – Higher amicable collectio
Slide 11: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q3 NOKm NPL REOs Gross Collection & Net Margin REOs Geographical distribution Asset class distribution Secured 1,638 6% 1,503 SEE 1,423 36% 45% NE 1,316 NOK NOK 47% Unsecured 1,276 1,282
Slide 12: Deleveraging and lower cost of funding
Deleveraging and lower cost of funding Decreased leverage following strong cash flow Interest expenses reduced NOKm Net interest-bearing debt Interest expenses 1) – Net interest-bearing debt reduced by NOK 2.8bn year-on-year • NOK 1.9bn adjusted for FX effects – Interest expenses reduced by NOK 25m
Slide 13: Summary
Summary B HOLDING”
Slide 14: Key takeaways
Key takeaways ESG rating among Improved efficiency Strong cash In advanced Dividend of NOK Higher market top 1 % globally in collection through generation and discussions with 0.15 for 2020 and activity expected AI initiatives continued reputable share buy-back going forward deleveraging institution
Slide 15: Q&A
Q&A B HOLDING”
Slide 16: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA EBITDA NOKm NOKm Cash EBITDA Cash margin NOKm EBITDA EBITDA margin 71% 71% 69% 70% 67% 1 014 977 932 931 905 813 831 792 550 0.55 762 756 49% 500 47% 0.50 45% 45% 45% 450 0.45 398 387 392 400 364 0.40 352 350 0.35 300 0.30 250 0.25 200 0.20 15
Slide 17: Third quarter 2021 summary
Third quarter 2021 summary 2020 2020 2020 2020 2021 2021 2021 NOKm Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net revenues 764 687 813 831 762 756 792 EBIT 255 245 369 355 330 341 370 Profit (loss) after tax 24 34 128 123 130 162 162 Cash revenue 1,364 1,342 1,348 1,349 1,424 1,369 1,332 Cash EBITDA 881 927 932 905 1,014
Slide 18: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 26,528 6,048 25,298 24,616 23,809 Pol 23,100 22,262 20,840 20,440 19,744 NE 3,650 15,264 CE 2,462 9,489 1,854 1,392 WE 1,069 804 592 440 SEE 340 2016 2017 2018 2019 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21
Slide 19: Portfolio diversification
Portfolio diversification Year 120m Total Unsecured 1 2 3 4 5 6 7 8 9 10 ERC ERC Pol 758 550 400 308 242 184 141 108 84 65 2,842 3,025 NE 1,478 1,212 1,001 835 687 567 471 390 319 264 7,223 8,120 CE 294 249 199 154 118 81 42 22 13 5 1,176 1,179 WE 219 183 140 105 79 64 40 22 4 1 856 858 SEE 593 516
Slide 20: Strong liquidity reserve and comfortable headroom to covenants
Strong liquidity reserve and comfortable headroom to covenants S&P: B+ (stable outlook) | Moody’s: Ba3 (negative outlook) Funding profile Financial covenants EUR millions Outstanding bonds Utilised RCF Utilised bridge facility Leverage ratio (max 4x) Interest cover ratio (min 4x) 9x Treasury bonds U
Slide 21: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) NOKm 2021 Q3 2020 Q3 Change % Highlights & KPIs Total revenues 279 271 3% – Portfolio purchase volume of NOK 108m in the quarter EBIT 185 169 9% Profit margin (%) 66% 62% 4pp – Gross collection of NOK 470m ERC 8,157
Slide 22: Western Europe (WE)
Spain, Italy and France Western Europe (WE) NOKm 2021 Q3 2020 Q3 Change % Highlights & KPIs Total revenues 84 132 -36% – Portfolio purchases of NOK 12m in the quarter EBIT 9 50 -82% – Gross collection of NOK 89m Profit margin (%) 11% 38% -27pp ERC 2,314 2,966 -22% Portfolio purchases Cost to Collect
Slide 23: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) NOKm 2021 Q3 2020 Q3 Change % Highlights & KPIs Total revenues 147 128 15% – Portfolio purchases of NOK 14m in the quarter EBIT 88 58 53% – Gross collection of NOK 220m Profit margin (%) 60%
Slide 24: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) NOKm 2021 Q3 2020 Q3 Change % Highlights & KPIs Total revenues 145 108 34% – Portfolio purchases of NOK 86 in the quarter EBIT 47 23 105% – Gross collection of NOK 154m Profit margin (%) 32% 21% 11pp ERC 2,714 3,403 -20% Portfolio purch
Slide 25: Poland
Poland Poland NOKm 2021 Q3 2020 Q3 Change % Highlights & KPIs Total revenues 164 206 -21% – Portfolio purchases of NOK 18m in the quarter EBIT 92 106 -14% – Gross collection of NOK 248m Profit margin (%) 56% 51% 4pp ERC 3,248 3,687 -12% Portfolio purchases Cost to Collect 74 58 29% 45 23% 18 2021 Q3
Slide 26: 20 largest shareholders
20 largest shareholders # Shareholder No. of shares Percentage 1 PRIORITET GROUP AB 52,913,000 12.91 % 2 RASMUSSENGRUPPEN AS1) 51,373,266 12.53 % 3 VALSET INVEST AS 26,000,000 6.34 % 4 STENSHAGEN INVEST AS 24,600,143 6.00 % 5 DNB MARKETS AKSJEHANDEL/-ANALYSE 17,984,479 4.39 % 6 VERDIPAPIRFONDET ALFR
Slide 27: Definitions
Definitions – 120-month ERC: Estimated remaining collection, which expresses the gross collection in face value expected to are classified as inventories in accordance with IAS 2. be collected in the future over a 120-month period from the purchased portfolios owned at the reporting date. The 120-mo
Slide 28: Definitions (cont'd)
Definitions (cont’d) – Interest income from purchased portfolios: Interest income from purchased loan portfolios is the calculated – Net revenues: Net revenues are the Total revenues reported less the Cost of collateral assets sold, including amortised cost interest revenue from the purchased loan p
Slide 29: b2holding.no
b2holding.no IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations www.b2holding.no +47 952 55 842 +47 22 83 39 50 rh@b2holding.no post@b2holding.no