Slide 1: Presentation of Financial Results for 9 Months of 2024
BEST GROUP PRESENTATION OF FINANCIAL RESULTS FOR 9 MONTHS OF 2024 Gdynia, 19.11.2024 r.
Slide 2: Key Information
BEST GROUP, Q1-Q3 2024 KEY INFORMATION PREZENTACJA WYNIKÓW ZA 9 MIES. 2024 R.
Slide 3: Summary
SUMMARY Key events at BEST Capital Group between July and November 2024 ▪ Rapidly growing claim repayments and cash EBITDA ▪ PLN 49.5 million invested in claim portfolios in Q3, acquired claim portfolios with a nominal value of PLN 242 million ▪ Publiczne Public bond issues worth PLN 125 million ▪ S
Slide 4: Non-Performing Debt Market in Poland
NON-PERFORMING DEBT MARKET IN POLAND PREZENTACJA WYNIKÓW ZA 9 MIES. 2024 R.
Slide 5: Poland – Non-Performing Bank Debt Market
POLAND – NON-PERFORMING BANK DEBT MARKET Debt market situation in Q3 2024: BANK NPLs – supply of claim portfolios ▪ Supply of unsecured retail bank portfolios by the end of Q3 (retail and mortgage-backed portfolios, primary market) 2024 up by approx. 15% YOY 12 0,600 ▪ Demand and prices for claim po
Slide 6: Poland – Other Sectors Market
POLAND – OTHER SECTORS MARKET TELECOMS LENDING COMPANIES 0,8 0,45 1,4 0,500 0,7 0,40 0,450 1,2 0,7 1,2 0,400 0,6 0,35 1,1 1,0 0,350 34% 0,5 0,5 0,5 0,30 28% 0,8 0,300 28% 0,4 0,25 0,250 23% 0,4 24% 0,6 21% 0,200 0,3 19% 20% 0,20 19% 0,4 0,5 0,150 0,2 0,3 0,15 0,3 0,100 0,1 11% 0,10 0,2 0,050 0,2 0,0
Slide 7: Poland – Non-Performing Debt Market
POLAND – NON-PERFORMING DEBT MARKET [PLN billion] GDP dynamics (quarterly figures YOY) Share of non-performing loans Lending dynamics (monthly figures YOY) Non-performing retail and corporate loans Total non-performing loans Non-performing loans (retail) Value of claim portfolios supply in the banki
Slide 8: BEST's Claim Portfolio Investments
BEST’S CLAIM PORTFOLIO INVESTMENTS 350 30% 300 25% 311 25% 301 22% 250 258 21% 20% 200 228 15% 15% 150 13% 11% 11% 157 10% 132 10% 100 9% 85 6% 5% 50 81 31 10 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 mies. 2024 9 months 2024 Acquisition Koszty costs nabycia (mln(PLN zł) million) Acquisition
Slide 9: Operating and Financial Results of BEST Capital Group
OPERATING AND FINANCIAL RESULTS OF BEST CAPITAL GROUP PREZENTACJA WYNIKÓW ZA 9 MIES. 2024 R.
Slide 10: 9M 2024 at a Glance
9M 2024 AT A GLANCE Claim repayments (PLN million) Operating revenues (PLN million) Cash EBITDA (PLN million) Net profit attributable to BEST shareholders (PLN million) 400 352 400 361 300 300 319 321 278 292 300 25 21 300 112 193 45 200 159 172 200 53 31 200 200 132 352 283 292 100 100 100 100 194
Slide 11: Operating Efficiency
OPERATING EFFICIENCY Operating expenses (PLN million) Operating profit (PLN million) Equity (PLN million) Net debt (PLN million) 200 200 193 900 845 900 2,00 168 163 170 750 100% 704 689 622 150 38 150 123 80% 1,50 64 43 115 600 600 100 100 60% 411 1,00 51% 49% 49% 0,83 0,83 132 300 40% 300 50 104 1
Slide 12: Two Markets – Poland and Italy
TWO MARKETS – POLAND AND ITALY Operating revenues by market (PLN million) Value of portfolios by market (PLN million) 400 1 500 1500 361 1 342 1 200 1 183 300 293 278 900 200 345 600 1 182 1 218 262 259 1 091 100 282 300 160 34 92 16 16 0 0 9M 2022 9M 2023 9M 2024 2022 2023 9M 2024 Poland Italy tota
Slide 13: Operating Expenses
OPERATING EXPENSES Segmentation of operating expenses (PLN million) Court and enforcement costs (PLN million) 200 60 19,7% 20% 180 167,9 163,3 169,7 50 160 6,8 6,9 7,4 15% 140 52,5 49,9 40 13,1% 120 71,0 100 30 62,8 10,7% 10% 32,6 36,0 80 28,6 20 42,7 60 37,6 5% 40 72,6 58,8 68,1 10 20 0 0 0% 9M 202
Slide 14: Assets Structure
ASSETS STRUCTURE Carrying value of portfolios (PLN million) Nominal estimated remaining collections (ERC) (PLN million) 4 000 4 000 3 000 3 000 2 640 2 000 2 000 1 183 3 389 3 027 1 000 1 000 2 449 1 342 1 500 1 105 0 0 31.12.2022 31.12.2023 30.09.2024 31.12.2022 31.12.2023 30.09.2024 due to BEST CG
Slide 15: Group's Equity and Liabilities
GROUP’S EQUITY AND LIABILITIES Equity (PLN million)) Net debt (PLN million)) 900 845 900 3,00 750 100% 704 689 2,50 622 549 80% 600 600 2,00 60% 395 411 1,50 47% 51% 49% 49% 300 40% 300 1,00 0,72 0,83 0,83 20% 0,60 0,50 0 0% 0 0,00 31.12.2021 31.12.2022 31.12.2023 30.09.2024 31.12.2021 31.12.2022 31
Slide 16: BEST Group on the Bond Market
BEST GROUP ON THE BOND MARKET Historic bond issues and redemptions (PLN million) Current bond repayment plan (PLN million) 2020 2021 2022 2023 19 2024 2025 2026 2027 2028 2029 70 65 60 50 50 20 10 19 20 11 10 11 14 11 10 -10 -11 -21,7 -18,7 -19 30 60 50 65 52 50 60 56 -50 -70 -65 -60 90 -93,5 issues
Slide 17: BEST Group – Credit Financing
BEST GROUP – CREDIT FINANCING Historic loan disbursements and repayments (PLN million) Future principal repayments (PLN million) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 549 550 534 546 515 525 489 503 475 438 449 416 393 368 343 318 available dostępny loan limit limit kredytowy 293 268 244
Slide 18: BEST Group – Growth Directions
BEST GROUP – GROWTH DIRECTIONS PORTFOLIO DIGITAL GROWTH ON THE MERGER WITH KREDYT INVESTMENTS TRANSFORMATION ITALIAN MARKET INKASO 1 2 3 4 ▪ Investments as in 2023 ▪ Flexible architecture ▪ People ▪ Scale-up of operations ▪ Growing share of the Italian ▪ Process automation ▪ Processes ▪ Geographical
Slide 19: BEST Group over 9 Months of 2024 – Summary
BEST GROUP OVER 9 MONTHS OF 2024 – SUMMARY GROWING RECOVERIES AND GROWING INVESTMENTS IN MODERATE COST INCREASES CASH EBITDA BUSINESS EXPANSION AND GROWING BUSINESS (9 MONTHS OF 2024) PROFITABILITY 1 2 3 NEGOTIATIONS ON THE STRONG FINANCIAL DIVERSIFIED SOURCES OF MERGER WITH KREDYT INKASO FOUNDATION
Slide 20: Thank You
THANK YOU BEST S.A. ul. Łużycka 8A 81-537 Gdynia www.best.com.pl
Slide 21: Attachments
ATTACHMENTS PREZENTACJA WYNIKÓW ZA 9 MIES. 2024 R.
Slide 22: Cash EBITDA
CASH EBITDA (PLN million) 3Q 2024 3Q 2023 change YOY 9M 2024 9M 2023 change YOY BEST repayment of claims 115,7 98,8 17% 351,7 321,6 9% other revenues 0,9 6,7 (86%) 3,2 7,3 (57%) OPEX (excluding amortisation/depreciation) (52,9) (50,7) 4% (162,3) (156,5) 4% Cash EBITDA* 63,7 54,8 16% 192,5 172,5 12%
Slide 23: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION (PLN milion) 30.09.2024 31.12.2023 31.12.2022 assets, including: 1 740,3 1 545,1 1 349,3 cash and cash equivalents 68,0 64,8 52,2 claims acquired 1 499,9 1 342,4 1 183,2 equity investments 72,0 39,9 27,6 investment real property 41,3 40,2 32,4 equity and liabilities,
Slide 24: Financial Results
FINANCIAL RESULTS (PLN milion) 9M 2024 9M 2023 change YOY Q3 2024 Q3 2023 change YOY Operating revenues, including: 292,5 277,8 5% 111,2 98,4 13% revenue from claims acquired 289,4 270,5 7% 110,3 91,7 20% interest calculated using the effective interest 231,9 211,8 10% 79,8 69,4 15% rate method devi
Slide 25: BEST CG Structure
BEST CG STRUCTURE Shareholding of BEST S.A. BEST S.A. (share in the share capital as at Kancelaria Radcy Prawnego 18/11/2024) BEST TFI SA 100% 96% Rybszleger Sp.K. BEST Capital FIZAN 100% 100% BEST Italia S.r.l. 5,2% 14,3% Others Marek 100% BEST I NSFIZ 100% BEST Capital Italy S.r.l. Kucner 100% BES