Delfingroup As · OMXRSE:DGR1R
Delfingroup As — Investor Presentation (April 2020)
31 slides from Delfingroup As's investor presentation, April 2020
Slide 1: Company Presentation 2019
COMPANY PRESENTATION 2019 April, 2020 Until 03/02/2020:
Slide 2: Disclaimer and Definitions for Alternative Performance Measures
DISCLAIMER DEFINITIONS FOR ALTERNATIVE PERFORMANCE MEASURES* This presentation is of selective nature and is made to provide an overview of the Company’s (SIA DelfinGroup and its subsidiaries) EBITDA business. Earnings before interest, taxes, depreciation and amortization calculated as Net Income +
Slide 3: Key to Success
KEY TO SUCESS WISE ASSESSMENT OF SMART PROACTIVITY MARKET SITUATION POSITIONING
Slide 4: Who We Are
WE SERVE PEOPLE WE VALUE Our mission is to create and provide Our services are always simple SIMPLICITY and easy to understand. innovative and custom finance solutions to our clients. We are accessible to everyone WHO WE ARE ACCESSIBILITY and everywhere. WE PROVIDE We treat everyone with respect, RE
Slide 5: Journey to Excellence
JOURNEY TO EXCELLENCE Values and ambitions have driven us to a decade of success. 2009 2010 2011 2013 2015 2016 2017 2018 2019 First pawn shop 50 branches Consumer lending Secured bonds Started money Joined global loan ISO certification Launch of a new Rebranding of opened opened in less launched is
Slide 6: Shareholder Structure
SHAREHOLDER STRUCTURE SHAREHOLDERS SHARES % SIA Lombards24.lv EUR 977 700 65.18 SIA AE Consulting EUR 150 000 10.00 96.5% of shares are controlled by the co-founder SIA EC Finance EUR 319 800 21.32 Agris Evertovskis. Management EUR 52 500 3.50 TOTAL PAID IN CAPITAL EUR 1 500 000 100.00 Agris Evertov
Slide 7: Management Board
MANAGEMENT BOARD AGRIS EVERTOVSKIS DIDZIS ADMIDINS Chairman of the Board CEO (co-founded company in 2009) (joined company in 2010) Agris Evertovskis, Chairman of the Board, Co-Founder; Didzis Ādmīdiņš, Member of the Board, Chief Executive Officer; Experienced, professional BSc in Economics and Busin
Slide 8: Trustworthy and State Regulated Business
TRUSTWORTHY AND STATE REGULATED BUSINESS APPLIES TO APPLIES TO REQUIREMENTS AND RESTRICTIONS VALUE CONSUMER LOANS PAWN LOANS Minimum capital requirement EUR 300 000 Initial licensing fee EUR 250 000 Annual licensing fee EUR 55 000 Restriction for advertising on state financed radio and television ch
Slide 9: Active and Socially Responsible Partner
ACTIVE AND SOCIALLY RESPONSIBLE PARTNER Alternative Financial Services Latvian Chamber of Commerce and State Revenue Service Consumer Rights Protection Centre Association of Latvia Industry Founding member since 2013 Member since 2015 DelfinGroup is the only non-bank lender Non-bank lending business
Slide 10: Need-Driven Business
NEED-DRIVEN BUSINESS Latvia's strategic goal for 2017-2019 was to activate lending. The goal was not fully achieved and is expected to stay in force until new development plan is published for a period starting from 2021. Alternative financial services providers ensure the accessibility of funding f
Slide 11: Brand Highlights
BRAND HIGHLIGHTS BRAND CREATED 2017 2018 2 strong brands cover secured and unsecured ONLINE ONLINE lending. ACCESS CHANNELS OFFLINE Banknote (pawn loans) BRAND FOCUSS Conservative, reliable. Dynamic and flexible. Banknote 38%* (unsecured) 50%* • Online; • Online; ADVERTISING • Search marketing; • Se
Slide 12: Leading Player
LEADING PLAYER ESSENTIAL SERVICES Consumer loans; Pawn loans; No. 1 player in pawn Pawnshop services; loan segment in Latvia. Online shop; International money transfer Western Union. TARGET AUDIENCE Customers with low/stable income; People who need to cover unplanned expenses; Seniors (an underserve
Slide 13: Vizia online financial services
VIZIA provides online financial services only. ESSENTIAL SERVICES Consumer loans. TARGET AUDIENCE Customers 25-50 years old with stable income; People who need to finance medium sized purchases; Tech savvy millennials. BRAND VISION A modern financial services provider specializing in simple and fast
Slide 14: Client Service
INVEST IN PEOPLE TO ENHANCE QUALITY CONTROL ADVANCES EXCELLENCE SERVICE Employee competence development program There are continuous skill based follow-ups for over decade has been continuously improved. branch employees. CLIENT SERVICE Each employee in client service area has full- profile skills t
Slide 15: Service Network
RĪGA, 38 VENTSPILS - 2 JŪRMALA - 2 SERVICE NETWORK 87 branches 38 towns Presence in every single populated area of Latvia having at least 4 000 inhabitants. JELGAVA - 2 LIEPĀJA - 5 DAUGAVPILS - 4
Slide 16: Service Area
SERVICE AREA Shopping experience and item placement are similar to those of consumer electronics stores. This attracts customers • interested in pawn loans; • looking for inexpensive pre-owned (used) goods. Banknote pawn shop interior and storefront design differs significantly from competitors. All
Slide 17: Pawn vs Consumer Loans
51% 55% 65% 64% 64% PAWN vs CONSUMER LOANS Comparatively small pawn 49% 46% loan portfolio generates 36% of total group’s income. 35% 36% 36% 2015 2016 2017 2018 2019 CONSUMER LOAN INCOME PAWN INCOME
Slide 18: Market Overview: Pawn Loans
PAWN LOANS PAWN LOAN PORTFOLIO, DELFINGROUP VS INDUSTRY* mEUR 35% 31% 30% 29% 26% MARKET OVERVIEW 6.4 6.4 6.6 6.5 6.7 In 2019 H1, 41% of all pawn 2.2 1.6 1.9 2.0 2.0 loans issued in Latvia were 2015 2016 2017 2018 2019 H1 issued by DelfinGroup. Industry DelfinGroup Market share AMOUNT OF PAWN LOANS
Slide 19: Pawn Loans
STABLE GROWTH PATTERN FOR PORTFOLIO AND INTEREST INCOME NET LOAN PORTFOLIO INTEREST INCOME mEUR mEUR 4.7 4.4 PAWN LOANS 3.8 4.1 4.0 2.5 2.2 1.9 2.0 PAWN LOANS 1.6 ISSUED IN 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 PAWN LOANS IN SPOTLIGHT LOAN TO VALUE 65%, average issued loan 64 EUR in
Slide 20: Market Overview: Consumer Loans
CONSUMER LOANS CONSUMER LOAN PORTFOLIO, DELFINGROUP VS. INDUSTRY* mEUR 5.7% 600 4.9% 4.4% 500 3.6% MARKET OVERVIEW 400 300 2.0% 285.1 291.4 218.2 242.8 200 185.4 DelfinGroup* grows faster 3.8 7.9 10.8 13.9 16.6 100 than the industry, having 0 2015 2016 2017 2018 2019 H1 ~6%** market share. Industry
Slide 21: Consumer Loans
CONSISTENT TENDENCY OF CONSUMER LOANS PORTFOLIO AND INTEREST INCOME NET LOAN PORTFOLIO INTEREST INCOME incl. accr. %, mEUR mEUR CONSUMER LOANS 19.9 14.6 CONSUMER LOANS 11.4 9.9 10.3 11.7 8.5 ISSUED IN 2019 4.3 6.2 6.5 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 CONSUMER LOANS IN SPOTLIGHT LOAN
Slide 22: Profitability Based on Thorough Processes
NEW TECHNOLOGIES AND SPOT-ON MARKETING PROCESSES STRATEGY Online services increases customer base which Customers are approached with resonating values high-quality financial services. messages through targeted segmentation and diverse pricing policy. PROFITABILITY Customer-oriented loan evaluation,
Slide 23: Solid Financial Performance
EBITDA, mEUR 12 57% 48% 45% 10 28% 24% 8 8.1 6 7.2 4 5.6 SOLID FINANCIAL 2 0 3.1 2.8 PERFORMANCE 2015 2016 2017 2018 2019 EBITDA margin* EBITDA 2019 has been successful in * Calculated as EBITDA / (Interest income + Gross profit from sale of foreclosed items) terms of maintaining high NET PROFIT, mE
Slide 24: Financial Ratios
7.8 5.9 5.3 3.5 3.4 3.6 2.5 3.1 2.3 2.2 FINANCIAL RATIOS 2015 2016 2017 2018 2019 Sustainable financial performance. Net Debt / Net Equity ratio Net Debt / EBITDA ratio et Debt/EBITDA ratio 3.1 3.1 2.5 2.5 1.9 2015 2016 2017 2018 2019 Interest coverage ratio
Slide 25: Income Statement
INCOME STATEMENT, EUR’000 2017A 2018A 2019A Interest and similar income 13 863 14 664 16 382 Gross profit from sale of goods 1 414 1 528 1 800 KEY FINANCIALS: Cession result (1 683) (494) (1 499) GROSS PROFIT 13 594 15 697 16 683 INCOME Selling expense Administrative expense (5 458) (2 290) (5 681)
Slide 26: Balance Sheet
BALANCE SHEET, EUR’000 2017A 2018A 2019A Fixed and intangible assets 601 603 2 740 Loans to related parties 1 303 1 277 1 308 KEY FINANCIALS: Net loan portfolio Inventory and scrap 15 844 683 20 151 848 31 547 1 155 Other assets 668 298 384 BALANCE SHEET Cash 2 220 3 489 1 136 TOTAL ASSETS 21 317 26
Slide 27: Cash Flow
CASH FLOW STATEMENT, EUR’000 2017A 2018A 2019A EBITDA 5 685 7 174 8 102 Taxes (252) (368) (79) Interest payments (1 823) (2 277) (2 853) Cessation result 1 683 494 1 499 Change in Consumer loans issued (6 391) (4 689) (13 095) Acquisition of right-of-use assets - - (2 738) KEY FINANCIALS: Other adju
Slide 28: Financing Structure
INTEREST-BEARING DEBT 2018, EUR’000* 2019, EUR’000* INTEREST RATE, % MATURITY Secured bonds** - 7 850 14% - 15% 2020/12 -2022/11 FINANCING Unsecured bonds** 7 907 - 14% - 15% 2020/12 -2021/10 STRUCTURE Peer-to-peer lending platform 10.62% - 11.97% According to issued 11 492 18 044 Mintos** (effectiv
Slide 29: Capital Market History
LV0000801322 LV0000801280 LV0000802213 LV0000802379 15% 14% 14% 14% Sinking fund until Maturity: 25/11/2018 Maturity: 25/10/2021 Maturity: 25/11/2022 25/12/2020 CAPITAL MARKET EUR 5 000 000 EUR 3 500 000 EUR 5 000 000 EUR 5 000 000 HISTORY secured secured secured secured Experienced and recognized b
Slide 30: Financial Forecast
EBITDA, mEUR (as published on 08/2019 via Nasdaq) FINANCIAL FORECAST 2.8 5.6 7.2 7.3 COVID - 19 impact on forecast 3.1 In March 2020, the Republic of Latvia and many other countries have 2.2 3.1 announced coronavirus related restrictions that substantially decrease the economic development of the co
Slide 31: 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