B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Goldman Sachs EMEA Credit and Leveraged Finance Conference 2021
27 slides from B2 Impact Asa's conference presentation, Sep 14, 2021
Slide 1: Company presentation
Company presentation Goldman Sachs EMEA Credit and Leveraged Finance Conference 14 September, 2021 Photo: Natalya Letunova / Unsplash
Slide 2: Today’s presenters
Today’s presenters André Adolfsen Rasmus Hansson Chief Financial Officer Head of Commercial Strategy & Investor Relations 2 B2Holding ASA Company presentation
Slide 3: This is B2Holding
This is B2Holding – The Group is organized within two business lines: Unsecured Asset Management and Secured Asset Management1) – Among the top 10 pan-European debt purchasers – FTEs as of Q2 2021: 2,102 Total ERC as of Q2 2021 Geographical distribution Asset class distribution SEE Pol Secured 13% 1
Slide 4: Market overview
Market overview Northern Europe Poland Western Europe Central Europe South East Europe Market position Top 3 Top 3 Top 10 Top 3 Top 3 ERC (NOK 20.4bn) NOK 8.44bn NOK 3.39bn NOK 2.40bn NOK 3.49bn NOK 2.72bn 1% 7% 14% % of ERC 37% 36% Secured vs. Unsecured 63% 64% 93% 86% 99% ✓ ✓ ✓ ✓ Third Party Colle
Slide 5: Key figures LTM as of Q2 2021 (NOKm)
Key figures LTM as of Q2 2021 (NOKm) Net revenues Gross Collections1) Cash EBITDA2) 3,163 5,850 3,827 Net profit Portfolio purchases Leverage ratio 542 1,113 2.52x 5 B2Holding ASA Company presentation Numbers are not FX adjusted. 1) Includes the Group’s share of gross collection for portfolios purch
Slide 6: Q2 highlights
Q2 highlights B- HOLDING
Slide 7: Highlights Q2 2021
Highlights Q2 2021 Operations – Strong unsecured collections – Solid secured recoveries both in cash and in successful repossessions – REOs sold in the quarter well above book value Effectiveness & efficiency – Sustained low cost base – New Chief Data & Analytics Officer to accelerate the Group’s di
Slide 8: Key figures Q2 2021 (NOKm)
Key figures Q2 2021 (NOKm) Net revenues Gross Collections1) Cash EBITDA2) 756 1,407 977 (687) (1,277) (927) Net profit Portfolio purchases Leverage ratio 162 220 2.52x (34) (473) (3.22x) 8 B2Holding ASA Company presentation Comparable numbers for Q2 2020 in brackets. 1) Includes the Group’s share of
Slide 9: Market update and market outlook
Market update Market outlook – Higher activity in Q2 compared to Q1 2021 – Increase of loan loss provisioning in European banks signals expected decrease in asset quality – Pipeline activity has increased over the summer, signaling a more active second half of 2021 – The largest European banks have
Slide 10: Core priorities going forward
Core priorities going forward Investment Operations Investments partnerships – Sustainable lower cost base – Strong balance sheet will enable – Positive development in with several cost saving us to harvest from an expected servicing revenues, but initiatives carried out favourable market going unta
Slide 11: Committed to ESG
Committed to ESG Highlights 6 ESG strategic lines Improvement of debtor knowledge – Reviewed materiality analysis for 2020 01 and satisfaction – Annual report 2020 included the first sustainability report based on GRI standards 02 Responsibility in our value chain – Initiated solicited ESG rating pr
Slide 12: Q2 financial performance
Q2 financial performance B- HOLDING
Slide 13: Second quarter 2021 summary
Second quarter 2021 summary 2021 2020 % 2021 2020 % 2020 – Strong unsecured collections at NOK million Q2 Q2 Δ H1 H1 Δ Full Year 102.5% of the latest forecast Net revenues 756 687 10% 1,518 1,451 5% 3,095 Adj. EBIT 321 245 31% 651 514 27% 1,246 – Solid secured recoveries - both cash Adj. EBIT % 43%
Slide 14: Capital structure
Capital structure Prudent leverage and strong liquidity reserve Funding profile EUR millions Outstanding bonds Utilised RCF Utilised bridge facility – Leverage ratio at 2.5x Treasury bonds Unutilised RCF Unutilised bridge facility • Equity ratio: 31.2 % • Total Loan to Value: 67.3 % I+3.25- E+7.00%
Slide 15: Deleveraging and increased liquidity reserve
Deleveraging and increased liquidity reserve Decreased leveraging and strong liquidity reserve Interest expenses decreasing due to lower debt NOKm – Net interest-bearing debt reduced by NOK 2.5bn year-on-year 14,000 Net interest-bearing debt Interest expenses1) 250 • NOK 1.8bn adjusted for FX effect
Slide 16: Collection Performance
Collection Performance Unsecured collection performance REOs sold 1000 923 923 927 934 110% +15% Book Value 905 105% 146 Sales Proceeds 800 102% 102% 100% 100% 100% 100% 100% 127 101% 101% 100% 600 +28% 95% 72 400 93% 56 90% 200 85% 0 80% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 L12M Q2 2021 Collection Perform
Slide 17: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q2 2021 Additional investment capacity Cash earnings NOKm NOKm 669 516 473 438 437 253 264 204 220 192 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Deleveraging Lev.ratio Lev.ratio (adj) 3.2x 3.2x 3.0x 2.6x 2.5x 3.1x 2.9x 2.7x
Slide 18: 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) Adj Ebit Margin % 1,805 – Initiated cost saving program Q2 2020 1,799 – Accumulated savings compared to Q1 2020 of NOK 316m 1,763 1,736 – Sustained lower cost base despite higher
Slide 19: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q2’21 NOKm NPL REOs Gross Collection & Net Margin REOs Geographical distribution Asset class distribution SEE Secured 1,638 WE 3%6% 0% 1,495 1,423 1,316 NOK 47% Pol NOK 1,276 Forward Flo
Slide 20: Key takeaways
Key takeaways Strong collection Improved collection Solid cash flow and Promising Higher visibility Well positioned to performance in efficiency coupled reduced leverage pipeline for REO in NPL pipeline take advantage of a all asset classes with increased sales – increased with increased growing NPL
Slide 21: Q&A
Q&A Appendices on the following pages
Slide 22: Balance sheet
Balance sheet 30 June 2021 30 June 2020 31 December 2020 NPLs 11,597 14,280 13,033 Collateral assets 1,122 512 873 Investments in JVs 318 372 349 Other non current assets 2,121 2,280 2,238 Other current assets 310 270 253 Cash & Short term deposits 356 445 423 TOTAL ASSETS 15,825 18,159 17,169 Total
Slide 23: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 26,528 5,628 25,298 24,616 23,809 Pol 23,100 22,262 20,840 20,440 4,377 NE 15,264 2,575 CE 9,489 1,939 1,441 WE 1,105 838 618 451 SEE 346 2016 2017 2018 2019 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 1 2 3 4 5 6
Slide 24: Portfolio diversification
Portfolio diversification Year 120m Total Unsecured 1 2 3 4 5 6 7 8 9 10 ERC ERC Pol 809 600 435 331 254 190 141 103 79 60 3,003 3,159 NE 1,507 1,255 1,037 864 711 585 486 402 330 273 7,450 8,402 CE 304 261 213 164 127 90 52 24 14 7 1,258 1,262 WE 222 185 151 108 84 66 45 27 6 1 893 893 SEE 571 505
Slide 25: 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 26: 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 27: IR contact
IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations +47 952 55 842 www.b2holding.no rh@b2holding.no +47 22 83 39 50 post@b2holding.no
B2Holding — Goldman Sachs EMEA Credit and Leveraged Finance Conference 2021 on 6ix