B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q2 2020 Earnings Presentation
31 slides from B2 Impact ASA's earnings presentation, Aug 20, 2020
Slide 1: Second quarter 2020
Second quarter 2020 Oslo, 20 August 2020 = B_ HOLDING~” ya ae
Slide 2: Key figures Q2 2020
Key figures Q2 2020 NOKm Total revenues Gross Cash Collections1 Cash EBITDA 702 1,277 916 (379) (1,328) (993) Net profit Portfolio purchases Leverage ratio 34 473 3.12x (-270) (1,667) (2.86x) Comparable numbers for Q2 2019 in brackets 1) Includes the Group’s share of gross cash collection for portfo
Slide 3: Highlights Q2 2020
Highlights Q2 2020 Volume Portfolio purchases kept low during the second quarter and first half year to further preserve liquidity and monitor the impact of Covid-19 Portfolios mainly acquired in Northern Europe Effectiveness & Unsecured collections moderately impacted by Covid-19, but better
Slide 4: Business update
Business update: B HOLDING”) ji a ae
Slide 5: Stable operations and gradually returning to normal activity
Stable operations and gradually returning to normal activity High business activity and stable operations in all markets throughout the quarter Low impact resulting in limited impact of Covid-19 on the Group as a whole Medium impact High impact Gradually opening offices and implementing routines to
Slide 6: Status forward flow agreements
Status forward flow agreements Committed Forward Flow contracts 2020 NOKm 180 Actual H1 In second quarter forward flows were reduced by 160 160 154 152 approximately 40 % compared with the initially planned purchases 140 125 120 110 103 Forward flow agreements renegotiated or terminated 100 94 85 80
Slide 7: Strengthened liquidity position
Strengthened liquidity position Liquidity reserve Good liquidity as of Q2, including treasury bonds of EUR 112.5 million 3.0 Portfolio purchases reduced with 72 % compared with Q2 2019 Modified covenant structure to provide additional headroom, valid until end of Q1 2021 NOK bn Equity ratio1) 25.7 I
Slide 8: Preparing for life after Covid-19
Preparing for life after Covid-19 “Project Foresight” launched; transforming all business processes using data and analytics Data and - The project is a part of a 3-year transformation program launched in 2019, targeting to deliver tangible analytics financial results and build a visible competitive
Slide 9: Financial performance
Financial performance
Slide 10: Second quarter 2020 summary
Second quarter 2020 summary Financial summary 2020 2019 % 2020 2019 % 2019 Net credit loss of NOK 155m in Q2 NOKm Q2 Q2 Change 6 months 6 months Change Full year - Primarily explained by Covid-19 related Total revenues 702 379 85 % 1,477 1,174 26 % 2,874 delays in collections during Q2 as well as Op
Slide 11: Operating expenses reduced in accordance with cost saving targets
Operating expenses reduced in accordance with cost saving targets Cost savings second quarter, FX adjusted NOKm In line with cost saving programme launched in Q1 509 17 22 Cost savings of NOK 85 million (17 %) delivered in Q2 40 1 Savings in Q2 resulted from: 22 441 - Lower activity reducing externa
Slide 12: Balance sheet
Balance sheet 2020 2019 % NOKm 30 Jun 30 Jun change Tangible equity ratio of 21.1 %1) Deferred tax asset 215 108 98 % Goodwill 845 769 10 % Tangible and intangible assets 364 371 -2 % NOK 902 million of assets in portfolio co- Investments in associated companies and joint ventures 372 637 -42 % inve
Slide 13: Capital structure
Capital structure Funding Debt Group holdings in treasury bonds Debt maturity profile Unutilised RCF Funding structure with sound leverage levels EUR millions E+7.50% E+7.00% I+3.25- E+4.25% E+4.75% E+6.35% Public rating (Corporate Family Rating) 3.75% - S&P: B+ 510 - Moody’s: Ba3 Repurchased EUR 63
Slide 14: Capital structure: Covenants
Capital structure Covenants RCF covenants In line with original RCF covenants and expect compliance going Equity Ratio 1 Total Loan to Value2 forward Temporary Temporary covenant covenant 22.5% 25.2% 25.1% 25.7% 77.5% 76.2% 75.4% 74.2% 74.7% 73.7% 23.6% 24.2% To further secure headroom to covenants
Slide 15: Continued modest portfolio purchase in second quarter
Continued modest portfolio purchase in second quarter Portfolio purchase volumes1) Geographical distribution 2016 2017 2018 2019 2020 NOKm SEE 2 273 36% NOK 52% 473m 1 951 8% 0% NE 1 667 1 634 4% WE 1 485 CE Poland 1 231 1 120 Asset class distribution 1 054 988 827 702 570 566 Secured 4% 491 473 NOK
Slide 16: ERC development
ERC development Geographical distribution Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm SEE Poland 26,528 6,467 14% 15% 25,298 WE 12% 24,708 23,809 Pol 22,262 22,595 5,434 NE 21,434 CE 20,608 21% 38% 20,119 18,116 NE 4,037 Asset class distribution 15,264 Secured 26% C
Slide 17: Summary
Summary B_ HOLDING™ ya ae
Slide 18: Summary
Summary High activity level despite a majority of the organisation working from home Collections and recoveries exceeded expectations in stress test scenarios following the outbreak of Covid-19, and cost reductions in accordance with plan Good support from our banks with waiver giving additional hea
Slide 19: Q&A
Q&A. B_-HOLDING™”
Slide 20: Quarterly financial performance
Quarterly financial performance Total revenues Cash EBITDA EBITDA NOKm NOKm Cash EBITDA Cash EBITDA margin EBITDA EBITDA margin NOKm 70% 70% 69% 67% 67% 880 47% 819 775 42% 39% 702 36% 1,062 993 415 379 963 966 916 344 281 272 -11% Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 -42 Q2’1
Slide 21: Quarterly financial performance
Quarterly financial performance NOKm 2018 2018 2019 2019 2019 2019 2020 2020 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total revenues 746 753 795 379 880 819 775 702 Operating profit/(loss) 370 326 350 -69 387 291 255 245 Profit/(loss) after tax 159 156 106 -270 181 90 24 34 Cash revenue 1,141 1,242 1,383 1,414 1,527
Slide 22: Diversified portfolio
Diversified portfolio UNSECURED Year Total 1 2 3 4 5 6 7 8 9 10 120m ERC ERC Pol 920 734 511 370 269 198 144 105 77 58 3,386 3,531 NE 1,681 1,435 1,198 995 826 678 557 460 379 307 8,516 9,662 CE 348 323 271 215 164 120 71 35 10 3 1,560 1,562 WE 237 227 177 145 112 83 60 35 18 4 1,097 1,099 SEE 673 5
Slide 23: Northern Europe (NE)
Northern Europe (NE) Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania NOKm 2020 Q2 2019 Q2 Change (%) Highlights & KPIs Total revenues 243 253 -4 % Portfolio purchase volume of NOK 247m in the quarter EBIT 136 162 -16 % Gross cash collection of NOK 439m in Q2 Profit margin (%) 56 % 64
Slide 24: Western Europe (WE)
Western Europe (WE) Spain, Italy, France and Portugal NOKm 2020 Q2 2019 Q2 Change (%) Highlights & KPIs Total revenues 105 245 -57 % Portfolio purchases of NOK 36m in the quarter EBIT 16 155 -90 % Gross cash collection in Q2 of NOK 131m Profit margin (%) 15 % 63 % -48 ppt Cash EBITDA was NOK 94m, up
Slide 25: Central Europe (CE)
Central Europe (CE) Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic NOKm 2020 Q2 2019 Q2 Change (%) Highlights & KPIs Total revenues 135 -294 - No portfolio purchases in the quarter EBIT 82 -360 - Gross cash collection in Q2 of NOK 233m Profit margin (%) 61
Slide 26: South East Europe (SEE)
South East Europe (SEE) Romania, Bulgaria, Greece and Cyprus NOKm 2020 Q2 2019 Q2 Change (%) Highlights & KPIs Total revenues 60 -3 - Portfolio purchases of NOK 171m in the quarter EBIT -7 -73 - Gross cash collection in Q2 of NOK 118m Profit margin (%) -11 % - - Cash EBITDA was NOK 70m, down 41 % fr
Slide 27: Poland
Poland Poland NOKm 2020 Q2 2019 Q2 Change (%) Highlights & KPIs Total revenues 159 178 -11 % Portfolio purchases of NOK 19m in the quarter EBIT 57 73 -22 % Gross cash collection in Q2 of NOK 253m Profit margin (%) 36 % 41 % -5 ppt Cash EBITDA was NOK 192m, up 11 % from Q2 2019 ERC 3,823 3,510 9% Por
Slide 28: 20 largest shareholders
20 largest shareholders # Shareholder No of shares Percentage 1 PRIORITET GROUP AB 52 913 000 12.91 % 2 RASMUSSENGRUPPEN AS1) 51 873 266 12.65 % 3 VALSET INVEST AS 25 000 000 6.10 % 4 STENSHAGEN INVEST AS 18 893 376 4.61 % 5 K11 INVESTOR AS 9 766 680 2.38 % 6 BRYN INVEST AS 8 676 690 2.12 % 7 RUNE B
Slide 29: Definitions
Definitions 120-month ERC Cash revenue Estimated remaining collection, which expresses the gross cash collection in face value expected to be collected in Cash revenue consists of “Total revenues” added back amortisation and revaluation of purchased loan portfolios. the future over a 120-month perio
Slide 30: Definitions (cont'd)
Definitions (cont’d) Gross cash collection Other revenues Gross cash collection is the actual cash collected and assets recovered from purchased portfolios before costs Other revenues includes revenue from external collection, interest on loan receivables as well as subscription related to collect t
Slide 31: B2Holding ASA contact details
B2Holding ASA Stortingsgaten 22 | P.O. Box 1726 Vika N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 E-mail: post@b2holding.no