Slide 1: Investor Presentation 2020 Q2 Results
INVESTOR PRESENTATION 2020 Q2 RESULTS August, 2020
Slide 2: Disclaimer
This presentation is of selective nature and is made to provide an overview of the Company’s (SIA DelfinGroup and its subsidiaries) business. DISCLAIMER Unless stated otherwise, this presentation shows information from consolidated perspective. Facts and information used in this presentation might b
Slide 3: Business Profile, Brands, Values
BUSINESS PROFILE: BRANDS: VALUES: SIMPLICITY ACCESSIBILITY Pawn loans Consumer loans RESPECT TOP 3 industry player in Latvia PROGRESS GROUP: KEY FINANCIALS: MASTERY 87 branches net loan portfolio 32.3 mEUR (2020 Q2) 265 employees EBITDA FOCUS ON 2009 2018 3 607 793 loan issue transactions (cumulativ
Slide 4: Highlights
CONSUMER AND PAWN LOANS ISSUED TOTAL LOANS OUTSTANDING EBITDA mEUR mEUR mEUR HIGHLIGHTS 32,5 32,3 In 2020Q2, Group has decreased 12,7 29,5 31,6 12,5 12,5 issuance level by 26.3% 11,5 2,3 2,2 2,1 2,1 compared to 2020Q1, due to the 23,7 1,8 impact of COVID-19. 8,5 22.2% improvement in y-o-y Q2 EBITDA
Slide 5: Market Overview: Consumer Loans
CONSUMER LOANS CONSUMER LOAN PORTFOLIO, DELFINGROUP VS. INDUSTRY* mEUR 8,0% 6,9% 7,0% 6,0% 4,9% MARKET OVERVIEW 3,6% 4,4% 306,7 5,0% 4,0% 285,1 3,0% 2,0% 242,8 218,2 185,4 2,0% DelfinGroup* grows faster than the 10,8 13,9 21,0 1,0% 3,8 7,9 industry, having ~7%** market 0,0% 2015 2016 2017 2018 2019
Slide 6: Consumer Loans
CONSUMER LOANS 19,9 20,3 20,2 18,7 17,3 In 2020Q2, portfolio was slightly decreased due to cautious issuance level in March to May as a response to COVID-19. 8,2 7,8 7,8 6,5 4,8 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 LOANS ISSUED, mEUR NET LOAN PORTFOLIO*, mEUR * Loan portfolio data based on DelfinGroup
Slide 7: Consumer Loans
CONSUMER LOANS Average loan tranche size per Average loan size per Weighted average term of Non-performing loans ratio issue customer loans issued € 222 € 720 5.0% 5.0% € 577 608 days € 172 500 days 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2019Q2 2019Q3 2019Q4 2020Q1 202
Slide 8: Market Overview: Pawn Loans
PAWN LOANS PAWN LOAN PORTFOLIO, DELFINGROUP VS INDUSTRY* mEUR 35% 34% 31% 29% 26% MARKET OVERVIEW 6,4 6,4 6,6 6,5 7,4 In 2019, 42% of all pawn loans issued 2,2 1,6 1,9 2,0 2,5 in Latvia were issued by 2015 2016 2017 2018 2019 DelfinGroup. Industry DelfinGroup Market share AMOUNT OF PAWN LOANS ISSUED
Slide 9: Pawn Loans
PAWN LOANS 4,9 5,1 4,7 4,3 4,4 Group has decreased issuance level 3,7 by 26.7% compared to 2020Q1 for secured lending, due to the impact of COVID-19. 2,5 2,3 2,3 2,3 2,1 2,0 Thus portfolio have recovered at the end of 2020Q2 and compared to 2020Q1 have not changed. 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
Slide 10: Pawn Loans
PAWN LOANS Stable customer base and Average loan size per issue: Pawn mark-up: Redemption rate* stable performance of pawnshop operations. 77% 45% 44% 74% € 65 € 62 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 * Items begin redeemed or exte
Slide 11: Detailed COVID-19 Impact Dynamics
CONSUMER AND PAWN LOANS ISSUED 4,5 4,6 4,2 4,1 DETAILED COVID-19 3,7 3,9 IMPACT DINAMICS 2,9 2,7 2,7 As a response to COVID-19 during 2,5 2,3 March to May Group applied 2,2 2,1 cautious issuance approach. In June issuance have increased and 1,8 1,1 1,7 1,6 1,6 in July reached its highest level €4.6
Slide 12: Detailed COVID-19 Impact Dynamics: Loans Outstanding
LOANS OUTSTANDING 19,9 20,3 20,2 18,7 17,3 DETAILED COVID-19 14,6 15,1 IMPACT DINAMICS 2,1 2,1 2,0 2,3 2,5 2,3 2,3 In 2020Q2, portfolio was slightly 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 decreased due to cautious issuance CONSUMER NET LOAN PORTFOLIO*, mEUR PAWN NET LOAN PORTFOLIO**, mEUR
Slide 13: Key Financials
KEY FINANCIALS 15,1 13,7 In line with historical pattern, also 12,5 12,5 11,0 11,5 11,0 Cash inflow* 2020Q2 delivered positive net cash flow. 9,0 8,6 8,5 Cash outflow* 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 * From consumer lending and pawn shop act
Slide 14: Financial Ratios
7,8 5,9 3,5 3,4 3,6 3,1 2,9 2,5 2,2 2,6 FINANCIAL RATIOS 2016 2017 2018 2019 2020Q2* Sustainable financial performance. Net Debt / Net Equity ratio Net Debt / EBITDA ratio * Calculated based on 12 month cumulative EBITDA 41% 44% 33% 36% 35% 2,4 2,4 2,4 2,1 2,2 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 EBIT
Slide 15: Key Financials: Income Statement
INCOME STATEMENT, EUR’000 2019 H1 2020 H1 %, Y-O-Y Interest and similar income 7 755 7 818 1% KEY FINANCIALS: Gross profit from sale of goods 811 933 15% Cession result (620) (516) (17%) PROFITABILITY GROSS PROFIT 7 946 8 235 4% Selling expense (2 681) (2 271) (15%) Decreased cession result Administ
Slide 16: Key Financials: Balance Sheet
BALANCE SHEET, EUR’000 2020 Q1 2020 Q2 %, Q-O-Q Fixed and intangible assets 2 698 3 915* 45% KEY FINANCIALS: Loans to related parties 1 377 1 382 0% Net loan portfolio 32 493 32 256 (1%) BALANCE Inventory and scrap 1 224 1 186 (3%) Other assets 503 536 7% Cash 2 037 1 958 (4%) Strong cash buffer. TO
Slide 17: Financing Structure
INTEREST-BEARING DEBT 2020 Q1, EUR’000 2020 Q2, EUR’000 INTEREST RATE, % MATURITY FINANCING Secured bonds II* 1 313 875 15% 12/2020 STRUCTURE Secured bonds III* 4 952 5 000 14% 10/2021 Diversified financing structure with established investor demand. Secured bonds IV* 3 569 4 500 14% 11/2022 Peer-to
Slide 18: Definitions for Alternative Performance Measures
EBITDA Earnings before interest, taxes, depreciation and amortization calculated as Net Income + Interest + Taxes + Depreciation + Amortization. Used as a measure of corporate performance as it shows earnings before the influence of accounting and financial deductions. EBITDA Margin Operating profit
Slide 19: SIA DelfinGroup contact details
SIA DelfinGroup Skanstes iela 50A Riga, Latvia LV-1013 kristaps.bergmanis@delfingroup.lv +371 66 15 50 06 www.delfingroup.lv