B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q2 2022 Earnings Presentation
29 slides from B2 Impact ASA's earnings presentation, 2022
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Highlights Q2 2022
Highlights Q2 2022 Operations – Unsecured collections and secured recoveries above the latest forecast – Positive trend for REO sales continued Effectiveness & efficiency – In the final stages of the strategic restructuring period – Continue to improve scalability across our markets Investments – In
Slide 3: Key figures Q2 2022 (NOKm)
Key figures Q2 2022 (NOKm) 3 Comparable numbers for Q2 2021 below. B2Holding ASA Q2 2022 results presentation 1) Prior period numbers are updated in accordance with adjusted definition for Cash revenue and Cash EBITDA – refer to the alternative performance measures section of the quarterly report fo
Slide 4: Market activity and volumes are up
Market activity and volumes are up Active quarter with increase in number and volume of deals evaluated Significant increase in portfolios acquired versus prior quarter and same quarter last year At the end of second quarter, NOK 1bn were invested in new portfolios and NOK 350m committed for the rem
Slide 5: Strategic journey – New B2Holding is taking shape
Strategic journey – New B2Holding is taking shape – Detailed underwriting carried out by – Senior financing agreement with – Closing of funding from PIMCO reputable investment firms PIMCO signed – Sale of DCA Bulgaria as an – In parallel, the secured servicing – Initiated legal segregation of assets
Slide 6: Improved scalability across our markets
Improved scalability across our markets Secured markets (Veraltis Asset Management) Unsecured markets FTE development1) FTE development 6 B2Holding ASA Q2 2022 results presentation 1) FTEs for Veraltis Asset Management includes 172 FTEs from Bulgaria as Q2’22
Slide 7: Financial performance
Financial performance B HOLDING”
Slide 8: Second quarter 2022 summary
Second quarter 2022 summary – Strong underlying collection performance • Unsecured collections at 106% • Secured collection at 231% • REO sales of NOK 103m at a 34% margin – Net revenue adj. up 3% YoY – One-off effect from sale of Bulgaria • Net revenue NOK -32m • EBIT NOK -135m and NOK -105m after
Slide 9: Collection Performance
Collection Performance Unsecured collection performance REOs sold Secured recoveries – Continued strong trend in Unsecured collection performance – Secured cash collections up 7% YoY – REO sales YTD at 80% of communicated FY target of NOK 300m 9 B2Holding ASA Q2 2022 results presentation All numbers
Slide 10: Cash earnings positive despite higher investment
Cash earnings positive despite higher investment Cash flow Q2 2022 Additional investment capacity NOKm NOKm Deleveraging Lev.ratio 10 B2Holding ASA Q2 2022 results presentation
Slide 11: Strong cash collections and stable underlying cost base
Strong cash collections and stable underlying cost base Cash collections (constant FX) Stable development in cost to cash revenue – Strong collection performance in unsecured despite increased – Q2 Opex excluding NRIs up 4.3% mainly due to higher activity; investment volume personnel costs 1.8% lowe
Slide 12: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Strong cash collection and growth in Unsecured ERC Portfolio investments in Q2 NOKm Geographical distribution Asset class distribution NOK NOK 758m 758m Total ERC as of Q2 Geographical distribution Asset class distribution NOK NOK 19.9b
Slide 13: New capital structure post funding
New capital structure post funding Debt maturity profile Improved flexibility and liquidity EUR millions Outstanding bonds Utilised RCF Utilised SFA Treasury bonds Unutilised RCF Unutilised SFA – Refinancing of the RCF was completed in Q2 – Senior Financing Agreement closed I+2.9- E+4.25% E+4.75% E+
Slide 14: Summary
Summary B HOLDING”
Slide 15: Key takeaways
Key takeaways Collections and Improved Restructuring in Closed senior Increased market recoveries scalability across the final stages financing activity and continue on a markets agreement and volumes positive trend extended RCF 15 B2Holding ASA Q2 2022 results presentation
Slide 16: Q&A
Q&A B HOLDING”
Slide 17: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm NOKm NOKm 17 B2Holding ASA Q2 2022 results presentation
Slide 18: Quarterly trends
Quarterly trends 18 B2Holding ASA Q2 2022 results presentation 1) Includes the Group’s share of gross collection for portfolios purchased and held in SPVs and joint ventures 2) Including the Group’s share of portfolios purchased in SPVs and joint ventures
Slide 19: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 19 B2Holding ASA Q2 2022 results presentation 1)Including the Company’s share in JVs and NOK 917m in Bulgaria
Slide 20: Portfolio diversification
Portfolio diversification 20 B2Holding ASA Q2 2022 results presentation ERC including the Group’s share of portfolios acquired and held in SPVs and joint ventures. Disclaimer: B2Holding ASA emphasizes that every assessment of future conditions necessarily involves an element of uncertainty.
Slide 21: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs – Portfolio purchase volume of NOK 366m in the quarter – Gross collection of NOK 423m Portfolio purchases Cost to Collect 21 B2Holding ASA Q2 2022 results presentation
Slide 22: Poland
Poland Poland Highlights & KPIs – Portfolio purchases of NOK 340m in the quarter – Gross collection of NOK 289m Portfolio purchases Cost to Collect 22 B2Holding ASA Q2 2022 results presentation
Slide 23: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs – No portfolio purchases in the quarter – Gross collection of NOK 242m Portfolio purchases Cost to Collect 23 B2Holding ASA Q2 2022 results presentation
Slide 24: Western Europe (WE)
Spain, Italy and France Western Europe (WE) Highlights & KPIs – Portfolio purchases of NOK 32m in the quarter – Gross collection of NOK 88m Portfolio purchases Cost to Collect 24 B2Holding ASA Q2 2022 results presentation
Slide 25: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs – Portfolio purchases of NOK 19m in the quarter – Gross collection of NOK 144m Portfolio purchases Cost to Collect 25 B2Holding ASA Q2 2022 results presentation
Slide 26: 20 largest shareholders
20 largest shareholders 26 B2Holding ASA Q2 2022 results presentation Updated per 19 August 2022 1) Total shareholdings of Rasmussengruppen AS includes shareholdings of its fully owned subsidiaries Portia AS, Cressida AS and Viola AS
Slide 27: Definitions
Definitions – Actualisation: Actualisation is the difference between actual and forecasted collections for purchased loan a measure of actual revenues (cash business) from the collection business and other business areas. Cash portfolios for the reporting period. Revenue is adjusted for Non-recurrin
Slide 28: Definitions (cont’d)
Definitions (cont’d) – Interest income from purchased portfolios: Interest income from purchased loan portfolios is the calculated projects, and material income or expenses relating to prior years. amortised cost interest revenue from the purchased loan portfolios using the credit-adjusted effective
Slide 29: b2holding.no
b2holding.no B2Holding ASA Stortingsgaten 22 P.O.Box 1726 Vika N-0121 Oslo IR contact Rasmus Hansson www.b2holding.no Head of Commercial Strategy +47 22 83 39 50 and Investor Relations post@b2holding.no +47 952 55 842 rh@b2holding.no