Multitude Ag · XETR:MULT
Multitude — Ferratum — H1 2020 Earnings Presentation
22 slides from Multitude's earnings presentation, Aug 20, 2020
Slide 1: First Half Year Results 2020
ferratum First Half Year Results 2020 IFRS preliminary unaudited financial results for the second quarter ended 30 June 2020 20 August 2020
Slide 2: Forward-looking statements disclaimer
This presentation contains, or may be deemed to looking statements. Nothing in this presentation constitutes investment contain, forward-looking statements. These By their nature, forward-looking statements involve advice and this presentation shall not constitute an statements relate to future even
Slide 3: Fast, easy & digital financial solutions
Years of operation Countries Consumer Mobile Bank CapitalBox (SME) lending and Primeloan 12% of revenues 87% of revenues 1% of revenues Fast, easy & • Successful execution of our 4-stage COVID-19 pandemic reaction plan: Risk digital exposure well under control; cost base further reduced; financial m
Slide 4: Products and Average Loan Value
Average Average Revenue H1 Revenues by Active Products Loan Comments Loan Value Share Product (€,000) Markets Term Primeloan 2019 1 637 (incl. Mobile Bank) -1% y-o-y • Primelending live in 4 markets, speed of role out €6,162 5.1 years 1.3% 2020 4 (4) €3,000 – €20,000 / 1 616 will be function of econ
Slide 5: Liquidity Management, Risk Control, Reduced Cost Base, Opportunities
1. Liquidity Management 2. Tight Risk Control Successful implementation of term deposits & cash collected Risk appetite reduced during early stage and peak of the pandemic from clients boost liquidity • Suspension of lending in selected markets pre-COVID • In Q2 20 deposits up by EUR 124m to EUR 443
Slide 6: Loan volume disbursed and net loans to customers
Loan volume disbursed, EUR m 500 Net loans to customers, EUR m 365 386 366 400 348 354 335 337 70 306 321 300 60 200 100 50 0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Jul 20 40 30 • Increasing lending volumes since May 2020 20 • Focus on markets which show a strong payment behavior 10 • Focus
Slide 7: About CapitalBox
• About CapitalBox: Ferratum’s SME business is now CapitalBox. CapitalBox is a leading online lending platform focused on providing installment loans to SMEs. It is currently successfully active in 6 European markets • Growth story: Over the last 5 years, CapitalBox has developed a strong track reco
Slide 8: H1 2020 Financial Overview
ferratum Hi 2020 FINANCIAL OVERVIEW.
Slide 9: Financial results Q1 and Q2 2020
• Y-o-y revenue movement of -16.8%: in EUR m Q1 2020 Q2 2020 H1 2020 H1 2019 % change (1) COVID-19 impact as of early March 2020 Revenue 65.604 55.535 121.139 145.613 -16.8% (2) Lending put on hold in selected markets EBIT -2.292 12.258 9.965 20.546 -51.5% • EBIT turnaround achieved for H1 despite d
Slide 10: Balance sheet June 2020
10 EUR ‘000 30 June 2020 31 Dec 2019 % Change EUR ‘000 30 June 2020 31 Dec 2019 % Change Assets Equity and liabilities Non-current assets Equity 60,420 60,512 -0.2% 125,389 129,138 -2.9% Accounts receivable – customer loans Non-current liabilities (net) 334,716 386,167 -13.3% 219,826 174,236 26.2% O
Slide 11: Results by product
EUR ‘000 Mobile Bank and EUR ‘000 Microloan PlusLoan Credit Limit CapitalBox Primeloan Total H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Revenue 10,436 19,379 21,818 32,874 72,267 78,720 15,004 13,004 1,616 1,637 121,139 145,613 ▪ Revenue share of
Slide 12: Revenue key drivers
Key drivers: EUR m • Suspension of lending in some markets (not related to COVID- 146 -14 19) during the full first half of 2019 accounts for more than half of revenue delta • Reduced revenue level in 132 -13 active markets is predominantly due to tighter risk management and lower 2 121 yields durin
Slide 13: Headcount and personnel expenses
Personnel expenses Headcount and personnel expenses 1000 12 000 000 • Decrease in headcount > 200 y-o-y 11 000 000 • Reduction in staff cost of 16.7% in H1 2020 900 10 000 000 vs H1 2019 800 9 000 000 8 000 000 Operational expenses 700 • Sales related expenses reduced temporarily 7 000 000 • Increas
Slide 14: Payment behavior and impairments
Payment behavior and impairments Invoices paid within 7, 14 and 30 DPD • Ferratum has adjusted its scoring and underwriting criteria for a deteriorating macroeconomic environment FX • Lending suspended in Spain, Canada and Poland • Selective and country specific new lending guidelines in all active
Slide 15: Debt 7-30 DPD collected
Debt 7-30 DPD collected in % • Collection performance improved even though cash flow plans of individuals and businesses were impacted during Q2 2020 • In many countries COVID-19 specific laws (i.e. moratoria) have been implemented that support individuals but restrict collection activities • Ferrat
Slide 16: Impairment losses (total) / NAR
IFRS 9 is a sophisticated standard calculating the expected loss intodroduced 1.1.2018 Impairment losses (total) / NAR 12,00% • Front loded reserving model: ~6.7% loss provions (Q1) at disbursement date, 9,77% 10,00% whereas interest is recorded during the 8,58% term of the loan 8,25% 2,12% 7,90% 8,
Slide 17: EBIT development by quarter
EUR m 14 13,0 12,5 12,3 12,0 12 10,8 10,1 9,7 10 8,8 8 6,5 6 5,5* 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -2 -4 -2,3 * Adjusted EBIT excluding COVID-19 related impairments 17 FE-Classification: General\Anyone
Slide 18: Funding: bonds, credit line and deposits
140 EUR 127,7 >100 m 120 100 80 EUR 100m 60 EUR 100m EUR 34,9 m EUR 80m 40 EUR 80m EUR 40m 20 EUR 30m EUR 4,2 m EUR 30m 0 EUR 442m EUR 242m Dec 31, 2019 FY 19 Mar Q131, 2020 2020 Jun H130, 2020 2020 10 9 8 Ferratum Bank 6.25% + 3m Euribor 2020 Nordea Credit Line (of which EUR 23,8m 7 Ferratum Capita
Slide 19: Outlook for H2 2020
• Lending activities: Management intends to selectively increase its lending activities in H2 20, especially in higher quality loans with a better lifetime value • Impairments: With potential increasing credit volume, impairments may increase, driven by provisioning of new loans • Marketing expenses
Slide 20: Summary
• Successful execution of our 4-stage COVID-19 pandemic reaction measures: Risk exposure well under control; cost base further reduced; financial metrics continued to strengthen; prepared to increase lending and to re-activate growth in H2 20 • Strong operational improvement compared to Q1 20: EBIT
Slide 21: Appendix
ferratum 412020... APPENDIX
Slide 22: Financial calendar and contacts
Date Financial Calendar Events Bernd Egger 28.08.2020 Ferratum Capital Germany: H1 report Chief Financial Officer 28.08.2020 Ferratum Bank p.l.c.: H1 report Telephone: + 49 173 7931235 19.11.2020 Ferratum Group: 9M results e-Mail: bernd.egger(at)ferratum.com Paul Wasastjerna Head of Investor Relatio