B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q1 2021 Earnings Presentation
31 slides from B2 Impact ASA's earnings presentation, 2021
Slide 1: First quarter 2021
First quarter 2021, B HOLDING®
Slide 2: Highlights Q1 2021
Highlights Q1 2021 Operations – Strong cash generation after portfolio investments and interest coverage – Strong momentum in secured recoveries – The organization has fully adapted to a new working environment Effectiveness & – Solid unsecured collections, main markets continue to outperform foreca
Slide 3: Key figures Q1 2021 (NOKm)
Key figures Q1 2021 (NOKm) Total revenues Gross Collections1) Cash EBITDA2) 782 1,494 1,014 (775) (1,433) (881) Net profit Portfolio purchases Leverage ratio 130 192 2.62x (24) (491) (3.04x) 3 B2Holding ASA Q1 2021 results presentation Comparable numbers for Q1 2020 in brackets. 1) Includes the Grou
Slide 4: Business update
Business update B_ HOLDING"
Slide 5: Market update and market outlook
Market update Market outlook – Q1 2021 has seen continued low transaction activity, – According to the European Banking Authorities, credit largely as a result of government schemes such as risk on bank loans across Europe has risen significantly payment holidays and loan moratoria. in Q4 2020 – Cap
Slide 6: 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 7: Core priorities going forward
Core priorities going forward Operations Investments ESG – Build on the positive development – Further strengthen our balance sheet – Approve and implement the Group within secured recoveries and REO to position ourselves for expected ESG Strategy management NPL volumes – Focus activities around the
Slide 8: Financial performance
Financial performance B_ HOLDING"
Slide 9: First quarter 2021 summary
First quarter 2021 summary 2021 2020 % 2020 – Stable unsecured collections at 101% NOKm Q1 Q1 Change Full year of the latest forecast Total revenues 782 775 1% 3,174 Operating profit (EBIT) 330 255 30 % 1,224 – Solid secured recoveries - both cash EBIT % 42 % 33 % 9 pp 39 % and successful repossessi
Slide 10: Collection Performance
Collection Performance Unsecured collection performance REOs sold 950 110% 2% 925 923 923 927 930 905 105% 86 88 910 890 100% 870 850 95% 47% 830 90% 810 28 790 85% 19 770 750 80% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 LTM Q1'21 Collection Performance % Book Value Sales Proceeds Secured recoveries – Unsecure
Slide 11: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q1 2021 Additional investment capacity Cash earnings 669 491 473 438 437 253 264 204 192 83 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Deleveraging Lev.ratio Lev.ratio (adj) 3.4x 3.2x 3.2x 3.0x 2.6x 3.3x 3.1x 2.9x 2.7x 2.3x
Slide 12: Operating expenses reduced in accordance with cost saving targets
Operating expenses reduced in accordance with cost saving targets – In line with cost saving programme launched in Q1 2020 Cost savings Y-on-Y, FX adjusted NOKm – Cost savings of NOK 62m (12 %) in the quarter compared 510 to Q1 2020 (constant FX) 12 6 18 5 – Savings of NOK 265m compared to Q1 2021 f
Slide 13: Portfolio Investments and Estimated Remaining Collections
Portfolio Investments and Estimated Remaining Collections Committed Forward Flow contracts 2021 Portfolio investments in Q1 NOKm Geographical distribution Asset class distribution Actual Q1’21 WE 16% 82% Unsecured Forward Flow NOK Secured 1% NOK SEE 1% 68% 192m 192m CE 6% 69 17% 9% Unsecured One-off
Slide 14: Capital structure
Capital structure Improved cost of funding and flexibility Funding profile EUR millions Outstanding bonds Utilised RCF Utilised bridge facility – Full flexibility to take out Bond 2 maturing in October 2021 Treasury bonds Unutilised RCF Unutilised bridge facility – Strong liquidity reserve of EUR 36
Slide 15: Summary
Summary B_ HOLDING"
Slide 16: Summary
Summary Stable operations with Solid collections and Strong cash flow and Transaction volume increased scalability recoveries continued strengthened balance expected to gradually throughout the Group into the second quarter sheet increase during the year 16 B2Holding ASA Q1 2021 results presentation
Slide 17: Q&A
Q&A B_ HOLDING"
Slide 18: Quarterly financial performance
Quarterly financial performance Total revenues Cash EBITDA EBITDA NOKm NOKm Cash EBITDA Cash margin NOKm EBITDA EBITDA margin 71% 69% 69% 67% 65% 845 852 775 782 702 47% 45% 45% 39% 36% 1,014 927 932 905 881 398 387 352 281 272 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q1’20 Q2’20
Slide 19: First quarter 2021 summary
First quarter 2021 summary NOKm 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total revenues 795 379 880 819 775 702 845 852 782 Operating profit (EBIT) 350 -69 387 291 255 245 369 355 330 Profit after tax 106 -270 181 90 24 34 128 123 130 Cash revenue 1,354 1,401 1,492 1,3
Slide 20: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm Geographical distribution SEE Poland 26,528 5,640 14% 16% 25,298 24,708 24,616 WE 23,809 Pol 12% 23,100 22,262 22,595 21,434 4,542 20,840 18% 41% CE NE NE Asset class distribution 15,264 Secured 22% 2,663 C
Slide 21: Portfolio diversification
Portfolio diversification Year 120m Total Unsecured 1 2 3 4 5 6 7 8 9 10 ERC ERC Pol 795 596 425 319 243 182 134 98 73 56 2,922 3,062 NE 1,502 1,259 1,045 873 720 592 490 404 331 273 7,489 8,467 CE 304 263 219 168 131 96 59 28 16 9 1,292 1,296 WE 220 190 156 112 86 65 50 30 10 2 922 923 SEE 575 532
Slide 22: Capital structure covenants
Capital structure Covenants RCF covenants – Well in line with all original covenants1) Equity Ratio 2 Total Loan to Value3 29.3% 75.0% 74.7% 73.7% 72.1% 27.7% 71.1% 69.2% 25.0% 25.1% 25.7% 26.8% Covenant 75 % Covenant 25 % Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Bond Loan covenan
Slide 23: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs NOKm 2021 Q1 2020 Q1 Change (%) – Portfolio purchase volume of NOK 131m in the 256 257 - Total revenues quarter 154 149 3% EBIT Profit margin (%) 60 % 58 % 2 pp. – Gross collection in Q1 of NOK 409
Slide 24: Western Europe (WE)
Spain, Italy and France Western Europe (WE) Highlights & KPIs NOKm 2021 Q1 2020 Q1 Change (%) – Portfolio purchases of NOK 2m in the quarter 94 112 -16 % Total revenues 14 16 -12 % EBIT – Gross collection in Q1 of NOK 102m 15 % 14 % 1 pp. Profit margin (%) 2,456 3,236 -24 % ERC Portfolio purchases C
Slide 25: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs NOKm 2021 Q1 2020 Q1 Change (%) – Portfolio purchases of NOK 11m in the quarter 141 125 13 % Total revenues 70 52 35 % EBIT – Gross collection in Q1 of NOK 484m 50 % 42 % 8
Slide 26: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs NOKm 2021 Q1 2020 Q1 Change (%) – Portfolio purchases of NOK 30m in the quarter 107 92 16 % Total revenues 28 6 367 % EBIT – Gross collection in Q1 of NOK 153m 26 % 7% 19 pp. Profit margin (%) 2,886 3,487 -17 % ERC Por
Slide 27: Poland
Poland Poland Highlights & KPIs NOKm 2021 Q1 2020 Q1 Change (%) – Portfolio purchases of NOK 18m in the quarter 184 189 -3 % Total revenues 95 76 25 % EBIT – Gross collection in Q1 of NOK 276m 52 % 40 % 12 pp. Profit margin (%) 3,290 4,059 -19 % ERC Portfolio purchases Cost to Collect 82 73 61 32% 2
Slide 28: 20 largest shareholders
20 largest shareholders # Shareholder No. of shares Percentage 1 PRIORITET GROUP AB 52 913 000 12.91 % 2 RASMUSSENGRUPPEN AS 51 873 266 12.65 % 3 VALSET INVEST AS 26 000 000 6.34 % 4 STENSHAGEN INVEST AS 24 600 143 6.00 % 5 VERDIPAPIRFONDET ALFRED BERG GAMBA 13 329 295 3.25 % 6 DNB MARKETS AKSJEHAND
Slide 29: Definitions
Definitions – 120-month ERC: Estimated remaining collection, which expresses the gross collection in face value – Cash revenue: Cash revenue consists of “Total revenues” added back amortisation and revaluation of expected to be collected in the future over a 120-month period from the purchased portf
Slide 30: Definitions (cont'd)
Definitions (cont’d) – Gross collection: Gross collection is the actual cash collected and assets recovered from – Other revenues: Other revenues includes revenue from external collection, interest on loan purchased portfolios before costs related to collect the cash received. receivables as well as
Slide 31: 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