B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Debt Investor Presentation (September 2017)
18 slides from B2 Impact Asa's debt investor presentation, September 2017
Slide 1: Company presentation September 2017
Company presentation -- September 2017
Slide 2: B2Holding is one of the leading NPL investor & work out specialist in Europe
B2Holding is one of the leading NPL investor & work out specialist in Europe B2Holding was founded by Mr. Nordbrekken (President) and Mr. Zahl (CEO) in 2011 - Founded Aktiv Kapital in 1991. B2H team exited in 2004. From 2014 part of PRA Group - Founded Gothia in 2005. Sold to Herkules in 2008 In 5 y
Slide 3: 20 largest shareholders
20 largest shareholders Board members Shareholder Trygve Lauvdal Rasmussengruppen Jon H. Nordbrekken Valset Invest AS Per Kristian Spone Indigo Invest AS Niklas Wiberg Prioritet Group AB Tove Raanes Kari Skeidsvoll Moe *Updated per 23 August 2017 |3
Slide 4: A leading pan-European debt investor with 19 platforms and ERC of NOK 11.9bn
A leading pan-European debt investor with 19 platforms and ERC of NOK 11.9bn Mature Platforms market Northern Europe (“NE”) 19 NE Countries with portfolios Poland (“P”) P 17 Central Europe Employees (FTEs) CE (“CE”) SEE 1,630 Southeast Europe (“SEE”) Total Gross ERC (NOKm) Growth market 11,881 Offic
Slide 5: Organisational overview
Organisational overview Olav Dalen Zahl CEO Erik J. Johnsen Danckert Mellbye Jeremi Bobowski Harald Henriksen Thor Christian Moen Rasmus Hansson Chief Financial Chief Org & Chief Investment Chief Compliance Chief Legal M&A Director Officer Improvement Officer Officer Officer Officer (50%) Northern E
Slide 6: Debt purchasing is highly attractive for both buyers and sellers
Debt purchasing is highly attractive for both buyers and sellers SELLERS BUYERS Make provisions on non-performing loans, writing down the book Acquire the NPL loans at a discount to face value, but at a higher value of the receivable price than the banks’ book value 1 Banks Shadow banks 2 Debt Inter
Slide 7: A disciplined investment process
A disciplined investment process BoD Analyse recommendations Approve critical decisions The Committee consists Approve investment strategy of the shareholders’ Investment Analyse investment representatives (the recommendations Chairman + two other), Committee Group’s CEO, CFO, CIO Review and adjust
Slide 8: B2Holding has become one of the leading debt purchasers globally
B2Holding has become one of the leading debt purchasers globally Largest debt purchasers operating in Europe Gross estimated remaining collections (ERC, EURm) Nordic 4 159 2 498 UK 2 424 2 226 1 945 Poland 1 930 1 892 SEE 1 400 1 277 1 227 Source: Company information |8
Slide 9: Top ten European debt investors / collectors
Top ten European debt investors / collectors European countries present (#) Estimated remaining collection (ERC, EURm) 31 4 159 28 2 498 19 2 424 14 2 226 9 1 945 7 1 930 5 1 892 5 1 400 5 1 277 4 1 227 Source: Company information |9
Slide 10: The development curve of debt purchase markets
The development curve of debt purchase markets Early phase Growth phase Mature phase • no or very limited NPL sales • sales exceed NPL formation • large share of NPL stock sold annually • wide bid-ask gaps • increasing competition across debt purchasers • low NPL ratio • weak quality of data • decre
Slide 11: Cash EBITDA grew 59% to a record-high of NOK 420m
Cash EBITDA grew 59% to a record-high of NOK 420m Financial summary Comments % NOKm Q2’17 Q2’16 Record portfolio acquisition change Net operating revenues 466 331 41% volume EBITDA 226 121 87% Operating profit (EBIT) 217 113 92% Profit margin 47% 34% - Continued strong gross collection on portfolios
Slide 12: Financial highlights: Income statement
Financial highlights: Income statement Income statement Comments 2017 2016 2017 2016 2016 NOKm Continued strong gross Q2 Q2 H1 H1 audited Revenue from purchased loan portfolios 411 284 807 518 1,206 collection on portfolios: NOK Other operating revenues 55 47 105 93 190 18m above the curves Total op
Slide 13: Total Gross ERC of approx. NOK 11.9bn – 45% growth y-o-y
Total Gross ERC of approx. NOK 11.9bn – 45% growth y-o-y Development in Total Gross ERC Curve overview NOK million NOK million +45% 2 792 2,787 11 881 2 016 Total 1 247 Gross ERC 801 9 852 576 430 562 9 489 316 213 141 1 2 3 4 5 6 7 8 9 10 >10 8 186 8 014 Year 120m Total Unsecured 1 2 3 4 5 6 7 8 9
Slide 14: Balance sheet
Balance sheet Balance sheet Comments 2017 2016 2016 NOKm Increase in purchased loan Q2 Q2 audited Tangible and intangible assets 97 88 91 portfolios with 54% due to Goodwill 431 411 395 record-high portfolio acquisition Purchased loan portfolios 6,242 4,030 4,752 volume and currency effect YTD Other
Slide 15: B2Holding – High Yield Bonds
B2Holding – High Yield Bonds Effective Rate and Volume Terms and Conditions Bps B2H01 EURm B2H01 B2H02 900 6,0 Issuer: B2Holding ASA B2Holding ASA 800 Status of the bond: Senior unsecured Senior unsecured 5,0 700 Initialamount: EUR 150million EUR 175million 600 4,0 Borrowing limit: EUR 150 million E
Slide 16: Net Debt Key Credit Ratios
Net Debt Key Credit Ratios Indebtedness – as at 30 June 2017 Key Highlights – 4bNOK Investments per year Net Debt: 4 556 MNOK Total LTV has increased slightly reflecting a small dividend of 55mNOK and significant portfolios acquired in Q2-2017 Book Value: 7 052 MNOK - We expect this ratio to stabili
Slide 17: Outlook
Outlook Expected continued growth in 2017 – strong focus on operational performance Well positioned for further growth with platforms in 19 markets (including new licences in Greece and Hungary) Financial Significant investment capacity and covenant headroom for future growth, without issuing new sh
Slide 18: B2Holding ASA
B2Holding ASA | Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: post@b2holding.no
B2Holding — Debt Investor Presentation (September 2017) on 6ix