B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q2 2023 Earnings Presentation
26 slides from B2 Impact ASA's earnings presentation, 2023
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Today's presenters
Today’s presenters Q&A moderator Erik J. Johnsen André Adolfsen Rasmus Hansson Chief Executive Officer Chief Financial Officer Head of Commercial Strategy & IR 2 B2Holding ASA Q2 2023 results presentation
Slide 3: Q2 Highlights
Continued strong collection performance • Unsecured collection performance at 107.6% • Secured cash collections of NOK 326m including REO sales of NOK 104m at 45.3% margin Continued focus on further cost reduction initiatives to mitigate inflation and increased cost of funding Q2 Invested and commit
Slide 4: Key figures Q2 2023 (NOKm)
Key figures Q2 2023 (NOKm) 4 B2Holding ASA Q2 2023 results presentation Comparable numbers for Q2 2022 below
Slide 5: ERC growth combined with low leverage
ERC growth combined with low leverage 1 NOKm N Os N D as D d Net ro t 4 5 4 2 32 4 34 5 5 3 4 2 5 4 5 5 3 5 23 4 45 35 3 55 3 2 3 3 5 3 3 2 5 22 5 4 4 45 2 3 42 4 5 4 3 2 2 3 4 43 2 2 2 2 35 34 5 B2Holding ASA Q2 2023 results presentation 1) Q4’22 includes NOK 435m signed late December, closed in Ja
Slide 6: Improved collection performance and focus on cost efficiency
Improved collection performance and focus on cost efficiency – Higher collections driven by legal strategies through use of Core unsecured markets analytics and increased use of self-service channels Secured markets (Veraltis) – Operating expenses stable despite increase in collection Head office, N
Slide 7: Financial performance
Financial performance B HOLDING”
Slide 8: Second quarter 2023 summary
Second quarter 2023 summary onstant – Strong collection performance across all asset classes on • Unsecured collection performance of 107.6% and up 11% YoY as collections 53 24 2 5 • Secured cash collections of NOK 326m Net revenues 3 4 3 2 • REO sales of NOK 104m at a premium to book value of 45.3%
Slide 9: Collection Performance excl. JVs
Collection Performance excl. JVs Unsecured collection performance REO sales 4 5 45 34 2 4 4 3 3 5 5 4 5 2 5 5 ollection erformance oo value Sales roceeds Secured collections 2 – Continued Unsecured overperformance – 107.6% for Q2 2023 3 3 5 4 – Stable secured cash collections 44 22 2 5 – REO sales a
Slide 10: Favourable low leverage and strong cash flow in the quarter
Favourable low leverage and strong cash flow in the quarter Cash flow Q2 2023 Additional investment capacity NOKm ncrease Decrease otal NOKm ortfolio investments as arnings ,5 5 5 3 22 2 2 3 5 Stable underlying leverage ratio (2.3x constant FX) Lev.ratio 33 24 24 25 25 23 2 10 B2Holding ASA Q2 2023
Slide 11: Stable opex despite growth in collection and inflationary pressure
Stable opex despite growth in collection and inflationary pressure Cash collections (constant FX) Operating expenses (constant FX) – Growth in unsecured collections – Opex up 3% compared with Q2 2022 and 2% up sequentially – Solid underlying cash contribution from Secured – Increase in opex driven b
Slide 12: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Growing cash collections and growth in ERC Portfolio investments in Q2 NOKm 1 N Os as collection Gross collections Geographical distribution Asset class distribution S 5 52 nsecured 45 22 N or ard lo 53 3 3 2 2 NOK NOK 24 795m 795m 2 24
Slide 13: Increased cost of capital driven by higher floating interest rate
Increased cost of capital driven by higher floating interest rate Stable margin, but increase in floating interest rate argin loat average loat edge , – Blended margin of 5.16% at the end of the quarter 5, – Total interest rate 8.6% including hedging ratio at 52% 4, • 4.20% floating if no hedge • 2.
Slide 14: Sound investment capacity in combination with low leverage
Sound investment capacity in combination with low leverage Debt maturity profile (EURm) Healthy maturity profile and flexibility Outstanding bonds Utilised RCF Utilised SFA1 – RCF amendment with increased flexibility and longer duration Unutilised RCF Unutilised SFA • Full flexibility to refinance b
Slide 15: Summary
Summary B HOLDING”
Slide 16: Key takeaways
Key takeaways Continued strong Operating On track to reach Sound investment Amended RCF with collection expenses stable NOK 2.5 to 3bn in capacity in increased flexibility performance despite increase investments in combination with in collection 2023 low leverage volume 16 B2Holding ASA Q2 2023 res
Slide 17: Q&A
Q&A B HOLDING”
Slide 18: Quarterly trends
Quarterly trends on as collections 3 22 3 24 24 244 45 24 53 Net revenues 2 5 2 2 4 24 4 3 d 33 32 3 5 2 2 33 3 3 343 4 2 4 d 43 43 4 4 4 42 4 42 44 4 33 34 3 2 24 3 33 3 3 3 5 4 d Net ro t 3 4 4 43 2 3 2 2 2 as revenue 424 3 34 2 34 3 3 5 3 4 5 as D 4 5 4 2 34 4 3 4 5 as margin 5 Gross collections
Slide 19: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm Net revenues NOKm as D as margin NOKm d d margin 4 5 5 4 3 3 55 4 4 4 5 24 44 42 42 45 4 4 4 4 2 35 3 3 33 343 3 25 2 5 5 19 B2Holding ASA Q2 2023 results presentation
Slide 20: ERC development
ERC development Development in total gross ERC1) 2) Forward 120m ERC profile by year NOKm NOKm 23 23 54 23 22 4 22 2 2 2 4 oland 5 3 52 4 N 3 223 23 4 3 33 5 55 S 20 B2Holding ASA Q2 2023 results presentation 1) ncluding t e Grou ’s s are of ortfolios acquired and eld in S Vs and oint ventures and N
Slide 21: Portfolio diversification
Portfolio diversification1) nse red ear Tota oland 52 52 4 33 2 2 22 5 4 5 23 N 2 3 2 5 55 2 5 4 4 3 34 25 524 25 2 2 2 32 55 43 32 25 32 2 5 22 5 5 44 3 22 2 S 5 24 53 3 2 253 2 4 3 5 4 Tota ear e red Tota oland 5 54 3 2 2 N 5 5 3 2 2 2 2 25 2 52 5 2 4 3 2 2 55 4 54 23 4 4 435 453 S 43 24 Tota Tota
Slide 22: Segment overview Q2 2023
Segment overview Q2 2023 Investments – Unsecured collection performance of 107.6% otal collections 43 2 otal N revenue 3 32 – Secured collection performance of 151.6% Direct o e 35 2 2 – Strong revenue growth from investments driven by over- performance in unsecured and secured Segment earnings in S
Slide 23: 20 largest shareholders
20 largest shareholders are o der o o s ares er enta e O G O 52 3 3 2 S SS NG N S 5 3 32 32 3 S NS G N NV S S 3 5 43 4 V S NV S S 2 2 5 DN K S KSJ ND N S 22 3 5 3 SK ND N V SK NSK D NK N 3 33 2 O D NG S 2 2 2 33 D NK S 2 24 2 2 N N S N S 2 2 V D OND S O ND NO G 5 3 5 2 V D OND DN NO G 3 5 2 G N S 5
Slide 24: Definitions
Definitions – Actualisation: Actualisation is the difference between actual and forecasted collections for purchased loan – Cash margin: Cash margin consists of cash EBITDA expressed as a percentage of cash revenue. portfolios for the reporting period. – Cash revenue: Cash revenue consists of Total
Slide 25: Definitions (cont'd)
De n t ons ( ont’d – Gross collections: Gross collections are the actual cash collected and assets recovered from purchased portfolios. – Non-recurring items: Significant profit and loss items that are not included in the Group’s normal recurring operations, which are difficult to predict and are co
Slide 26: b2holding.no
b2holding.no B2Holding ASA Stortingsgaten 22 P.O.Box 1726 Vika N-0121 Oslo IR contact www.b2holding.no Rasmus Hansson +47 22 83 39 50 Head of Commercial Strategy post@b2holding.no and Investor Relations +47 952 55 842 rh@b2holding.no