B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — SEB Nordic Seminar and Arctic Debt Collection Seminar 2020
16 slides from B2 Impact Asa's conference presentation, Jan 8, 2020
Slide 1: Company presentation
Company presentation Rasmus Hansson, Head of M&A and IR – 8 January 2020
Slide 2: Well diversified across Europe
Well diversified across Europe Strategic spread across the regions GROUP REGIONS Poland 15% Northern Europe (NE) NE Total ERC1 36% Q3’19 24.7 CE Norway, Sweden, Total ERC1 24% Denmark, Finland, NOKbn Latvia, Lithuania, WE SEE Estonia 12% 13% Poland Poland Poland 76 NE Western Europe (WE) EBITDA 170
Slide 3: Highlights Q3 2019
Highlights Q3 2019 Key financials All-time high Gross Cash Collections and Cash EBITDA Total revenues Gross Cash Collections Cash EBITDA 880 1,386 1,062 Leverage ratio down from 3.2x (Q2 2019) to 3.0x verifying a solid debt service capacity NOK million NOK million NOK million Earnings per share NOK
Slide 4: Established as one of top ten European debt collectors
Established as one of top ten European debt collectors European countries present (#) Estimated remaining collection (120m ERC, EURm) 24 5 290 23 3 783 23 3 414 11 3 120 9 2 359 8 2 302 7 1 866 6 1 739 1 5 1 1 526 5 N/A Source: Company information and J.P.Morgan Credit Management Services Valuation
Slide 5: Well positioned to support the new strategic direction
Well positioned to support the new strategic direction Northern Europe Poland Western Europe Central Europe South East Europe Market position Top 3 Top 3 Top 10 Top 3 Top 3 ERC1) % 36 % 15% 12% 24% 13% 1% 8% 25% % of ERC1) 35% 31% Secured vs. Secured 65% 69% Unsecured 23% 75% 99% 92% 77% Unsecured T
Slide 6: Access to a vast opportunity set for the future
Access to a vast opportunity set for the future Coverage of 78% of the EU NPL stock across our 23 countries 200 50 European bank NPL per country1 EURbn Total volume of banking NPLs in Europe exceed EUR 635bn. 180 45 Italy, France, Spain and Greece, the four largest markets, account for ca. 160 66% o
Slide 7: Regulatory environment: Prudential backstop
Regulatory environment: Prudential backstop Capital requirements applying to banks with NPLs on their balance sheets Bank regulation for minimum loss coverage (%) for NPLs After year 1 2 3 4 5 6 7 8 9 Secured by immovable collateral 0% 0% 25% 35% 55% 70% 80% 85% 100% Secured by movable collateral 0%
Slide 8: Capital structure with prudent leveraging
Capital structure with prudent leveraging Status Staggered maturity with ample liquidity headroom Funding structure with sound leverage levels, significant financial EUR millions flexibility and supporting liquidity reserves E+7.50% E+7.00% I+3.25- E+4.25% E+4.75% E+6.35% 3.75% 510 Leverage ratio do
Slide 9: Diverse portfolio mix – good returns regardless of money multiples
Diverse portfolio mix – good returns regardless of money multiples Secured portfolios and forward flows provide lower cash multiples, but not lower returns Cash multiples depend on asset type Unsecured portfolios: good returns with high cash-on-cash multiples and long-term recoveries 1.8x Total 2019
Slide 10: Increasing share of forward flows
Increasing share of forward flows Profitable & stable collection profile Cost efficiency and stable long-term vendor relationships ▪ Stable flow of new NPLs and low-cost, low-risk cash flows ▪ Win-win: - Vendors sell NPLs early with minimal tender and migration costs - buyers have minimal transactio
Slide 11: Partnerships for large portfolios – higher capacity, lower risk
Partnerships for large portfolios – higher capacity, lower risk B2Holding is actively pursuing joint ventures to gain access to a larger pipeline As of today, the Group has co-investments on portfolios in Romania, Greece, Croatia and Sweden and further co-investments are under consideration. The abi
Slide 12: Four main focus areas going forward
Four main focus areas going forward 1 STRONGER FOCUS ON SECURED RECOVERIES ▪ Organizational changes within secured including additional specialized resources and stronger head office involvement and oversight 2 IMPROVE EFFICIENCY IN OPERATIONS ▪ Automation of manual processes, digitalization and sta
Slide 13: B2Holding – Making each other better
B HOLDING’ Making each other better
Slide 14: Definitions
Definitions 120-month ERC Cash revenue. Estimated remaining collection, which expresses the gross cash collection in face value 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 purch
Slide 15: Definitions (cont’d)
Definitions (cont’d) Forward flow agreements Operating cash flow per share Forward flow agreements are agreements where the Group agrees with the portfolio Operating cash flow per share is operating cash flow from consolidated statement of cash provider that it will, over some period in fixed interv
Slide 16: Stortingsgaten 22, Oslo contact details
Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: post@b2holding.no
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