Slide 1: Company presentation
Company presentation DNB SME Conference – 7 April 2022 Erik Just Johnsen, CEO Photo: Adrian / Unsplash
Slide 2: This is B2Holding
This is B2Holding NOKm FY 2021 FY 2020 Change % SEE 14% Net revenues 3,036 3,095 -2% WE NE 12% 39% Adjusted EBIT 1,333 1,246 7% Total ERC NOK Adjusted EBIT Margin 44% 40% 4 pp 19.9bn 17% CE EBIT 1,308 1,224 7% 18% ERC 19,918 23,100 -14% Pol Gross Collections 5,435 5,659 -4% Cash EBITDA 3,779 3,664 3
Slide 3: Group Main Achievements 2021
Group Main Achievements 2021 Organization & Operational Effectiveness & Capital funding Investments ESG improvements efficiency – Maintained Covid-19 – Unsecured collections: – Sustained lower cost base – Stable cash earnings, – Solid investment capacity measures: remote or Continued positive trend
Slide 4: ESG focus showing results
ESG focus showing results Substantially improved the ESG Risk rating from Sustainalytics, ESG Risk rating 9.3 ranking us at the top of our industry and within the top 1 % of rated companies globally – B2Holding is considered to be at negligible ESG risk: Negligible Risk • Low exposure of material ES
Slide 5: Additional investment capacity for secured and unsecured markets
Additional investment capacity for secured and unsecured markets – Senior financing of approx. EUR 200m agreed with PIMCO BV1 NOK 13.1bn – Reinvestment of cash flows BV NOK 8.3bn BV NOK 4.8bn through revolving facility up to EUR 130m next two years Core unsecured & Core secured existing JVs ~EUR 200
Slide 6: Establishing a cross-border master servicer with local expertise
Establishing a cross-border master servicer with local expertise – Segregate Servicing from Current New structure Investment activity in countries with secured assets Master servicer – Master and special servicer model received approval by regulator in EU. – Facilitating co-investments BV NOK 8.3bn
Slide 7: Collection Performance
Collection Performance Unsecured collection performance REOs sold 1000 927 934 949 110% +38% Book Value 905 853 102% 103% 105% 164 Sales Proceeds 800 101% 101% 102% 100% 119 600 100% 100% 100% 100% 100% 95% 400 90% +43% 200 85% 24 17 0 80% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 FY 2021 Q4 '21 Collection Perf
Slide 8: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q4 2021 Additional investment capacity Cash earnings NOKm Increase Decrease Total NOKm 669 552 516 503 862 3 437 220 237 204 192 78 - 552 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Deleveraging Lev.ratio Lev.ratio (adj) - 37
Slide 9: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity L12M Gross Collections 1) L12M Operating expenses 2) – Sustained lower cost base despite high collection activity demonstrating increased scalability across the group 6 000 2 000 5 851 5 720 – OPEX in the quarter down 13% compared
Slide 10: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q4 NOKm NPL REOs Gross Collection & Net Margin REOs Geographical distribution Asset class distribution SEE NE 1 638 15% 16% Secured WE 1 503 12% 2% 1 423 CE 8% 1 316 NOK NOK 68% Unsecure
Slide 11: Key takeaways
Key takeaways 2021 closed on a Dividend of NOK Signed financing Significant Prepared for positive trend 0.42 for 2021 agreement with increase in higher market PIMCO to drive investments in Q4 activity scalability on secured platforms 11 B2Holding ASA Company presentation 7 th April 2022
Slide 12: Q&A
Q&A B HOLDING”
Slide 13: Definitions
Definitions – Actualisation: The difference between actual and forecasted collections for purchased loan portfolios for the – Cost other revenues: Cost other revenues is all external and internal operating costs related to the Group’s other reporting period. business areas. – Adjusted EBIT (Adj. EBI
Slide 14: Definitions (cont'd)
Definitions (cont’d) – Interest Coverage: The ratio of Cash EBITDA divided by net interest expenses. – Net revenues: Net revenues are the Total revenues reported less the Cost of collateral assets sold, including impairment. – Interest income from purchased portfolios: Interest income from purchased
Slide 15: b2holding.no
b2holding.no IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations www.b2holding.no +47 952 55 842 +47 22 83 39 50 rh@b2holding.no post@b2holding.no