Slide 1: Investor Presentation 2021 Q1 Results
INVESTOR PRESENTATION 2021 Q1 RESULTS
Slide 2: Disclaimer
Disclaimer • This presentation is of selective nature and is • This presentation is not a legally binding document and made to provide an overview of the Company’s (AS the Company has no liability for any direct or indirect DelfinGroup and its subsidiaries) business. loss from the use of this presen
Slide 3: Top 2 industry player in Latvia
Business Values: profile: Pawn loans Simplicity Consumer loans Top 2 2009 2020 Accessibility industry Established as a pawn broking 2nd largest nonbank consumer lender in Brands: player in chain Latvia* Respect Latvia Group: Key financials: Progress 92 277 32.2 m EUR Mastery branches emplyees net lo
Slide 4: Highlights
Consumer and Total loans EBITDA pawn loans issued outstanding (m EUR) Highlights (m EUR) (m EUR) 14.6 In 2021 Q1 13.5 34.0 34.7 2.6 2.5 32.5 32.3 32.2 2.4 21% Group have achieved 11.5 2.1 2.2 EBITDA increase 10.0 compared to 2020 Q1. 8.5 Total issuance increased in 2021 Q1 by 18% compared to 2020 Q2
Slide 5: Consumer loans Market overview
Consumer loans Consumer loan portfolio, Delfingroup vs. industry*** 7.6% 9.0% 6.9% 8.0% Market 4.4% 4.9% 7.0% 6.0% 5.0% 3.6% overview 2.0% 218.2 242.8 285.1 306.7 282.6 4.0% 3.0% 185.4 2.0% 3.8 7.9 10.8 13.9 21.0 21.6 1.0% DelfinGroup* 2015 2016 2017 2018 2019 2020 H1 0.0% have reached 7.6%** Indust
Slide 6: Consumer loans
28.0 27.3 24.7 Consumer 20.3 20.2 loans In 2021 Q1 portfolio has increased by 2.6% compared to 2020 Q4. Issuance level has increased 9.4 9.3 in 2021 Q1 6.7 6.5 by 3.1% compared to 2020 Q1. 4.8 Portfolio increase is in line with increase in average term of loans issued. 2020 Q1 2020 Q2 2020 Q3 2020 Q
Slide 7: Consumer loans
Average loan tranche Average loan size size per issue per customer € 219 € 221 € 217 € 208 € 1 048 Consumer € 172 € 702 € 720 € 868 € 934 loans 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Weighted average Non-performing term of loans issued loans ratio 683 days 72
Slide 8: Pawn loans Market overview
Pawn loans Pawn loan portfolio, Delfingroup vs industry* 35% 31% 34% 35% 40% 29% Market 6.4 6.4 26% 6.6 6.5 7.4 6.7 30% overview 20% 10% 2.2 2.0 2.5 2.3 0% 1.6 1.9 46% of all pawn In 2020 H1, -10% -20% in Latvia loans issued 2015 2016 2017 2018 2019 2020 H1 by were issued by Industry DelfinGroup Mar
Slide 9: Pawn loans
5.1 5.2 Pawn loans 4.2 In 2020 Q2, 2020 Q4 and 2021 Q1 3.7 3.4 issuance level has decreased for pawn lending due to COVID-19 related 2.3 2.5 restrictions that apply to branches and 2.3 2.1 decrease client flow in branches. 1.70 Decrease of portfolio in 2021 Q1 has been in line with issuance level ch
Slide 10: Pawn loans
Average loan Pawn Redemption Pawn loans size per issue: mark-up: rate* Stable customer base 74% € 70 71% 71% 71% 70% and stable performance € 67 € 68 € 65 47% € 62 44% 45% 45% of pawnshop operations. 43% 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2020 Q1 2020 Q2
Slide 11: Consumer and pawn loans issued Detailed COVID-19 impact
Consumer and pawn loans issued 4.9 Detailed 4.4 4.1 4.3 4.5 4.6 4.2 COVID-19 impact 3.7 3.6 4.0 3.5 3.2 dinamics 2.9 2.7 2.9 2.7 2.9 2.7 3.3 2.7 2.5 2.5 2.4 When new restrictions to reduce the 2.2 2.2 2.2 spread of COVID-19 are introduced, 1.5 1.6 issuance level decreases, but once the 1.8 1.7 1.7 1
Slide 12: Loans outstanding Detailed COVID-19 impact
Loans outstanding 27.3 28.0 24.7 19.9 20.3 20.2 18.7 17.3 Detailed 15.1 COVID-19 impact dinamics 2.1 2.0 2.3 2.5 2.3 2.3 2.5 2.1 1.7 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 In 2021 Q1, portfolio have increased Consumer net loan portfolio*, mEUR Pawn net loan portfolio
Slide 13: Key financials
Key financials 15.3 15.2 14.2 Cash inflow* 13.6 In line with historical pattern, 12.5 12.6 11.5 13.5 2021 Q1 delivered also 10.2 positive net cash 10.0 flow. Cash outflow* 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 13 * From consumer lendi
Slide 14: Financial ratios
5.9 3.4 3.6 3.7 3.0 2.5 Financial 2.2 3.1 3.0 2.6 ratios 2017 2018 2019 2020 2021 Q1* Sustainable Net Debt / EBITDA ratio* Net Debt / Net Equity ratio financial performance. 44% 46% 42% 35% 34% 2.1 2.2 2.2 2.3 2.0 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Interest coverage ratio (IFRS 16 adjusted for
Slide 15: Key financials: Profitability
Income statement, EUR’000 2020 Q1 2021 Q1 %, Y-O-Y Interest and similar income 4 310 4 812 12% Key financials: Gross profit from sale of goods 495 458 (7%) Credit loss expense (507) (706) 39% Profitability Gross profit 4 298 4 564 6% Selling expense (1 129) (1 091) (3%) 21% growth of comparable Admi
Slide 16: Key financials: Balance
Balance sheet, EUR’000 2020 Q4 2021 Q1 %, Q-O-Q Fixed and intangible assets 4 031 4 145 3% Loans to related parties 474 445 (6%) Key financials: Net loan portfolio Inventory and scrap 34 674 1 534 32 220 1 693 (7%) 10% Other assets 654 495 (24%) Balance Cash 4 592 1 907 (58%) During 2021 Q1 loan por
Slide 17: Financing structure
2020 Q4, 2021 Q1, Interest Interest-bearing debt EUR’000 EUR’000 rate, % Maturity Financing Secured bonds III* Secured bonds IV* 5 000 5 000 5 000 5 000 14% 14% 10/2021 11/2022 structure Unsecured bonds 3 481 3 500 12% 11/2022 Peer-to-peer lending platform Mintos* 17 287 13 005 12.5% According to Di
Slide 18: Environmentally responsible workplace
Environmentally responsible workplace Electricity and petrol usage Environmental 178.1 132.5 160.6 168.8 136.0 158.1 192.6 130.1 129.1 sustainability 62.6 60.2 55.5 58.4 58.3 55.9 46.3 50.8 45.0 DelfinGroup have received quality and energy 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020
Slide 19: Greenhouse gas emission and intensity
Environmentally responsible workplace Greenhouse gas emission and greenhouse gas emission intensity Environmental sustainability 155.2 146.5 161.6 140.1 136.1 115.4 118.1 121.6 0.032 113.0 The increase of greenhouse gas 0.027 emission in 2021 Q1 will be evaluated 0.024 0.024 0.023 0.022 0.020 0.021
Slide 20: Pawn shop as part of circular economy
Pawn shop as part of circular economy Environmental 40000 36 996 1200 sustainability 35000 33 691 32 398 34 023 32 710 33 553 32 250 1000 29 648 DelfinGroup promotes 30000 27 299 723 800 efficient use of resources 25000 681 673 by returning workable 604 584 563 565 20000 497 515 600 goods to seconda
Slide 21: Employees: Social responsibility
Employees Dynamics of the number of employees and gender diversity Social 265 269 266 272 273 260 265 279 277 300 250 responsibility 62% 60% 59% 43% 57% 44% 56% 44% 56% 44% 56% 48% 52% 45% 55% 200 38% 40% 41% 150 100 At the end of 2021 Q1, the 50 percentage of female employees is 0 2019 Q1 2019 Q2 2
Slide 22: Employees: Social Responsibility
Employees 6.0 Employees turnover and average employment time in company 18% 4.4 4.5 4.7 4.6 16% Social 5.0 3.9 3.9 4.1 4.1 14% 4.0 4.0 12% 9% Responsibility 3.0 7% 7% 7% 5% 6% 6% 7% 10% 8% 2.0 4% 6% 4% 1.0 Stable average employment time 2% 0.0 0% in Group indicates satisfaction 2019 Q1 2019 Q2 2019
Slide 23: Definitions for alternative performance measures
EBITDA NET Profit Margin Earnings before interest, taxes, depreciation and amortization How much net profit is generated as a percentage of revenue, calculated as Net Income + Interest + Taxes + Depreciation + calculated as Net Profit / Revenue. Used as an indicator of a Amortization. Used as a meas
Slide 24: SIA DelfinGroup contact details
SIA DelfinGroup Skanstes iela 50A Riga, Latvia, LV-1013 kristaps.bergmanis@delfingroup.lv +371 66 15 50 06 www.delfingroup.lv