Delfingroup As · OMXRSE:DGR1R
Delfingroup As — Q3 2020 Earnings Presentation
24 slides from Delfingroup As's earnings presentation, November 2020
Slide 1: Investor Presentation 2020 Q3 Results
INVESTOR PRESENTATION 2020 Q3 RESULTS November, 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 34.0 mEUR (2020 Q3) 265 employees EBITDA FOCUS ON 2009 2018 3 724 699 loan issue transactions (cumulativ
Slide 4: Highlights
CONSUMER AND PAWN LOANS ISSUED TOTAL LOANS OUTSTANDING EBITDA mEUR mEUR mEUR HIGHLIGHTS In 2020Q3, Group has increased 14,6 34,0 2,6 32,5 32,3 issuance level by 71.8% 12,7 29,5 31,6 2,3 2,2 12,5 2,1 2,1 compared to 2020Q2, reaching 11,5 highest issuance level since the 8,5 foundation of the company.
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 30,0 25,0 24,7 In 2020Q3, portfolio have increased 19,9 20,3 20,2 20,0 18,7 15,0 10,0 9,4 7,8 7,8 6,5 4,8 5,0 0,0 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 LOANS ISSUED, mEUR NET LOAN PORTFOLIO*, mEUR * Loan portfolio data based on DelfinGroup net consumer loan portfolio incl. accrued intere
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 € 227 € 868 725 days € 221 4.7% 4.6% € 633 516 days 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2019Q3 2019Q4 2020Q1 2020Q2 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 5,1 5,2 4,9 4,7 4,4 Group has increased issuance level 3,7 by 40.5% compared to 2020Q2 for secured lending, showing positive recovery after the state of 2,5 2,3 2,5 2,3 2,3 2,0 emergency was lifted on 10 June 2020. Portfolio have increased by 8.7% compared to 2020Q2. 2019Q2 2019Q3 2019Q4
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. 76% € 70 47% 71% € 65 43% 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 * Items begin redeemed or exte
Slide 11: Detailed COVID-19 Impact Dynamics
CONSUMER AND PAWN LOANS ISSUED 4,9 DETAILED COVID-19 4,6 IMPACT DINAMICS 3,7 3,6 4,0 4,0 3,6 2,9 3,2 As a response to COVID-19 during 2,8 March to May Group applied 2,6 2,5 cautious issuance approach. 2,2 2,2 2,1 In 2020Q3 the amount of issued loans was gradually increased and in 1,8 1,4 1,7 1,5 1,5
Slide 12: Detailed COVID-19 Impact Dynamics: Loans Outstanding
LOANS OUTSTANDING 30,0 25,0 24,7 DETAILED COVID-19 20,0 15,0 17,3 18,7 19,9 20,3 20,2 14,6 15,1 IMPACT DINAMICS 10,0 5,0 2,1 2,1 2,0 2,3 2,5 2,3 2,3 2,5 0,0 In 2020Q3, portfolio have increased 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 by 20.9% compared to 2020Q2. CONSUMER NET LOAN PORT
Slide 13: Key Financials
15,3 14,6 14,1 Cash outflow* KEY FINANCIALS 12,6 12,7 Cash inflow* 14,2 11,3 In 2020Q3 cash outflow from 10,6 10,0 consumer lending and pawn shop 8,5 activities exceeds cash inflow from consumer lending and pawn shop activities due to increased issuance level in 2020Q3. 2017Q3 2017Q4 2018Q1 2018Q2 2
Slide 14: Financial Ratios
7,8 5,9 3,5 3,4 3,6 3,0 2,5 2,2 3,1 2,8 FINANCIAL RATIOS 2016 2017 2018 2019 2020Q3* Sustainable financial performance. Net Debt / Net Equity ratio Net Debt / EBITDA ratio * Calculated based on 12 month cumulative EBITDA 44% 46% 41% 36% 35% 2,4 2,4 2,1 2,2 2,2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 EBIT
Slide 15: Key Financials: Profitability
INCOME STATEMENT, EUR’000 2019 Q3 2020 Q3 %, Y-O-Y Interest and similar income 12 082 12 030 0% KEY FINANCIALS: Gross profit from sale of goods 1 324 1 516 15% Cession result (1 039) (561) (46%) PROFITABILITY GROSS PROFIT 12 367 12 985 5% Selling expense (4 076) (3 477) (15%) Administrative expense
Slide 16: Key Financials: Balance
BALANCE SHEET, EUR’000 2020 Q2 2020 Q3 %, Q-O-Q Fixed and intangible assets 3 915 3 855 (2%) KEY FINANCIALS: Loans to related parties 1 382 376 (73%) Net loan portfolio 32 256 34 041 6% BALANCE Inventory and scrap 1 186 1 545 30% Other assets 536 365 (32%) Strong cash buffer. Cash 1 958 2 434 24% TO
Slide 17: Financing Structure
INTEREST-BEARING DEBT 2020 Q2, EUR’000 2020 Q3, EUR’000 INTEREST RATE, % MATURITY Secured bonds II* 875 438 15% 12/2020 FINANCING Secured bonds III* 5 000 5 000 14% 10/2021 STRUCTURE Secured bonds IV* 4 500 4 566 14% 11/2022 Diversified financing structure with Unsecured bonds - 3 500 12% 11/2022 es
Slide 18: Environmental Sustainability
ENVIRONMENTALLY RESPONSIBLE WORKPLACE ELECTRICITY AND PETROL USAGE 200,0 178,1 168,8 180,0 156,3 160,6 160,0 130,1 132,5 129,1 136,0 140,0 123,7 ENVIRONMENTAL 120,0 100,0 80,0 61,0 59,0 62,6 55,5 58,4 58,3 55,9 60,2 SUSTAINABILITY 60,0 40,0 46,3 20,0 0,0 DelfinGroup have received 2018Q3 2018Q4 2019Q
Slide 19: Environmental Sustainability
ENVIRONMENTALLY RESPONSIBLE WORKPLACE 200 0,05 GREENHOUSE GAS EMISSION AND GREENHOUSE GAS EMISSION INTENSITY 180 160 155,2 0,04 146,5 ENVIRONMENTAL 140 137,3 0,032 140,1 118,1 121,6 SUSTAINABILITY 120 112,2 0,029 115,4 113 0,03 0,024 0,024 100 0,023 0,023 0,022 0,021 In 2020Q3 Greenhouse gas 80 0,02
Slide 20: Environmental Sustainability: Pawn Shop as Part of Circular Economy
PAWN SHOP AS PART OF CIRCULAR ECONOMY 1200 40 000 36 996 33 691 34 023 35 000 32 398 32 710 1000 31 519 29 312 29 648 ENVIRONMENTAL 800 27 299 30 000 SUSTAINABILITY 620 609 681 604 673 25 000 600 563 584 20 000 497 515 DelfinGroup promotes efficient use of resources by returning 400 368 15 000 worka
Slide 21: Social Responsibility
EMPLOYEES DYNAMICS OF THE NUMBER OF EMPLOYEES AND GENDER DIVERSITY 100% 300 265 265 269 266 272 273 265 90% 261 260 280 80% 260 64% 64% 62% SOCIAL 70% 240 60% 59% 57% 56% 56% 56% 60% 220 50% 200 RESPONSIBILITY 40% 30% 20% 36% 36% 38% 40% 41% 43% 44% 44% 44% 180 160 140 10% 120 At the end of 2020Q3,
Slide 22: Social Responsibility
EMPLOYEES 6,0 EMPLOYEES TURNOVER AND AVERAGE EMPLOYMENT TIME IN COMPANY 18% 16% 5,0 4,4 4,5 3,8 3,9 3,9 4,1 4,0 4,1 14% 4,0 3,8 12% 9% SOCIAL 3,0 6% 6% 7% 7% 7% 5% 6% 6% 10% 8% 2,0 6% RESPONSIBILITY 1,0 4% 2% 0,0 0% Increasing average employment 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q
Slide 23: 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 24: 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