B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2 Holding — Debt Investor Presentation (December 2015)
26 slides from B2 Impact Asa's debt investor presentation, December 2015
Slide 1: Presentation – December 2015
Presentation – December 2015 -- 1
Slide 2: Agenda
Agenda 1. Introduction to B2 Holding 2. Market and industry dynamics 3. Portfolio overview 4. Financial information 2
Slide 3: B2 Holding is one of the leading debt purchasers and collection players
B2 Holding is one of the leading debt purchasers and collection players in the regions where they are active B2 Holding in brief Geographical presence Incorporated in November 2011 by current Operations and portfolios: Norway ERC per Q3-15 Chairman Jon Harald Nordbrekken Sweden Finland 1% Shares
Slide 4: European platform built through acquisitions of well-established companies
European platform built through acquisitions of well-established companies November April 2012: October 2012: April 2013: October 2013: August 2014: August 2014: 2011: Acquired Sileo Kapital Acquisition of B2Holding Acquisition of Acquisition of B2Holding AS 50.1% of purchases the Resurs Bank Kapita
Slide 5: Solid sponsor backing with NOK 1,450 million raised in new equity to date
Solid sponsor backing with NOK 1,450 million raised in new equity to date Ten largest shareholders1 Historical equity issues Number of Percent of NOK million # Shareholders shares total 1 600 1 Rasmussengruppen 54.7 17.6% 17 2 Prioritet Group 50.2 16.1% 1 400 3 Valset Invest 24.0 7.7% 1 200 4 Stensh
Slide 6: Strong management and experienced board
Strong management and experienced board Management Board of directors Jon Harald Nordbrekken – Chairman and Founder Former CEO of Intrum Justitia Norway CEO Founded Aktiv Kapital in 1991, CEO until 1998, chairman from 1998 to 2004 Olav Dalen Zahl In 2005, he founded B2Holding AS, parent to bot
Slide 7: Agenda
Agenda 1. Introduction to B2 Holding 2. Market and industry dynamics 3. Portfolio overview 4. Financial information 7
Slide 8: Non-performing debt is purchased from vendors at a deep discount
Non-performing debt is purchased from vendors at a deep discount The Credit Management Services value chain Adjacent activities Portfolio Invoice purchase 3rd party debt Credit services Invoicing services investments & Consumer credit Savings accounts and financing collection collection Portfolio in
Slide 9: Critical infrastructure in place to secure attractive purchases and collection processes
Critical infrastructure in place to secure attractive purchases and collection processes Successfully optimised the operational resource base… … enabling best-in-class decisions processes Leading data capabilities support performance in non- performing loan origination and collection Backs optim
Slide 10: B2Holding mainly focuses on the markets which are in a growth phase
B2Holding mainly focuses on the markets which are in a growth phase offering opportunity for higher IRRs Typical development stages of debt purchasing markets Early phase Growth phase Mature phase • No or very limited NPL sales • Sales exceed NPL formation • Large share of NPL stock sold • Wide bid-
Slide 11: Competitive landscape
Competitive landscape Largest debt purchasers operating in Europe Gross estimated remaining collections (ERC)* Nordic € 5 020 € 4 086 UK € 1 964 € 1 930 € 1 814 € 1 625 Central and Eastern € 1 549 € 1 433 € 1 014 US based € 873 € 621 € 570 € 472 € 310 € 288 * Source: 2Q and Q3 2015 company reports a
Slide 12: Agenda
Agenda 1. Introduction to B2 Holding 2. Market and industry dynamics 3. Portfolio overview 4. Financial information 12
Slide 13: Investment strategy based on thorough analysis and strict profitability requirements
Investment strategy based on thorough analysis and strict profitability requirements Investment strategy 1 Portfolio investments 2 Strategic acquisitions Forward flow from Small and midsize Large portfolio Acquisition of existing contracts portfolio purchases purchases subsidiaries/platforms Purpose
Slide 14: Healthy portfolio growth in attractive markets
Healthy portfolio growth in attractive markets Portfolio development Q1-Q3 2015 portfolio purchases (NOKm) Q1-Q3 NOKm 2013 2014 9 2015 46 Baltics 737 562 527 220 Rest of Nordics 172 Balkans Portfolio purchases Finland Poland 3.84 3.45 290 Total claims outstanding (millions) 0.30 Gross ERC split by r
Slide 15: Diversified debt portfolio with Poland as largest contributor
Diversified debt portfolio with Poland as largest contributor Debt portfolio details Gross ERC split by estimated collection Face value Gross ERC Country Subsidiaries / portfolios # of claims (NOK mill) (NOK mill) NOK million Baltics 1,400 Poland Ultimo group 3,408,743 30,701 2,852 Rest of Nordics 1
Slide 16: Agenda
Agenda 1. Introduction to B2 Holding 2. Market and industry dynamics 3. Portfolio overview 4. Financial information 16
Slide 17: Financial highlights
Financial highlights Increasing revenues with high conversion Conservative leverage profile Solid balance sheet Cash EBITDA (NOK)1 Total loan to value (LTV)3 Equity ratio Sep 2015: +78%2 42% 592 40% 333 46.4% Dec 2014: 46.4% 2014 2015 (Q1-Q3) 2014 Sep 2015 Cash conversion2 Leverage ratio4 Liquidity
Slide 18: Strong cash revenue growth with high margins
Strong cash revenue growth with high margins Consolidated income statement Comments Jan-Sep NOKm 2013 2014 2015 Total cash revenue has increased from 422m in 2013 to NOK 1,035m as of Interest income on purchased loan portfolios1 99 400 624 Q1-Q3 2015, as a result of Revenue from external collectio
Slide 19: Revenue mix – 53% of revenues from Poland
Revenue mix – 53% of revenues from Poland Cash revenue mix Q1-Q3 2015 Comments NOK million Interest income and excess cash collection on Interest income purchased loan portfolio representing 90% of total cash revenues 303 External collection Limited changes to portfolio cash flow estimates with
Slide 20: Increasing operational efficiency
Increasing operational efficiency Cost to income ratio Operational costs Personnel costs NOK million 187 2014 affected by extraordinary costs related to the Increase in personnel acquisition of Ultimo. Improved operational efficiency in 136 costs is related to the 2015, with increased revenue per he
Slide 21: Low financial gearing with leverage ratio of only 2x and equity ratio of 46%
Low financial gearing with leverage ratio of only 2x and equity ratio of 46% Consolidated balance sheet Comments NOKm 2013 2014 Q3 2015 Growth in NPL of NOK 1,992m from 2013 to September 2015 following Tangible and intagible assets 38 419 425 acquisition of Ultimo (NOK 1,023m in NPL) and additiona
Slide 22: Cash flow
Cash flow Consolidated cash flow Comments Jan-Sep Cash Flow Statement (NOKm) 2013 2014 2015 Strong cash flow generation from Cash EBITDA 242 333 592 existing portfolio of NOK 503 million Change in loan receivables -7 -47 -69 Q1-Q3 2015 Working capital and FX revaluation -1 -48 4 Total investment
Slide 23: Transaction summary – Bank Loan (260m EUR) and Bond loan (150m EUR)
Transaction summary – Bank Loan (260m EUR) and Bond loan (150m EUR) Comments Simplified group structure B2Holding recently entered into an EUR 260 mill. Bond Issue multi-currency Revolving Credit Facility (“RCF”) EUR 150m B2Holding AS 33.33% Sileo Finans AB (Issuer) with DNB and Nordea, which refi
Slide 24: Summary of terms for EUR 150 mill. bond loan
Summary of terms for EUR 150 mill. bond loan Issuer: B2Holding AS Status of the bond: Senior unsecured Borrowing amount: EUR 150 million Use of proceeds: General corporate purposes Issue price: 100% of par value Coupon rate: EURIBOR 3m +750 bps p.a., quarterly interest payments EURIBOR floor: 0.0% T
Slide 25: Company highlights
Company highlights 1 Leading debt purchase Leading position in Poland, the Nordics and Balkans within debt purchase and collection company in the Nordics and Established relationships with key providers of non-performing loan («NPL») portfolios Central Eastern Europe Best-in class data capabil
Slide 26: B2 HOLDING: Making each other better
B2 HOLDING: Making each other better
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