B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q2 2021 Earnings Presentation
30 slides from B2 Impact ASA's earnings presentation, 2021
Slide 1: B2Holding Q2 2021 results
B2koronaq2 Photo: Kyler Trautner / Unsplash
Slide 2: Highlights Q2 2021
Highlights Q2 2021 Operations – Strong unsecured collections – Solid secured recoveries both in cash and in successful repossessions – REOs sold in the quarter well above book value Effectiveness & efficiency – Sustained low cost base – New Chief Data & Analytics Officer to accelerate the Group’s di
Slide 3: Key figures Q2 2021 (NOKm)
Key figures Q2 2021 (NOKm) Net revenues Gross Collections1) Cash EBITDA2) 756 1,407 977 (687) (1,277) (927) Net profit Portfolio purchases Leverage ratio 162 220 2.52x (34) (473) (3.22x) 3 B2Holding ASA Q2 2021 results presentation Comparable numbers for Q2 2020 in brackets. 1) Includes the Group’s
Slide 4: Business update
Business update B2 HOLDING:
Slide 5: Market update and market outlook
Market update Market outlook – Higher activity in Q2 compared to Q1 2021 – Increase of loan loss provisioning in European banks signals expected decrease in asset quality – Pipeline activity has increased over the summer, signaling a more active second half of 2021 – The largest European banks have
Slide 6: Improved operations and scalability
Improved operations and scalability Sustainable – Optimized collection strategies and processes cost savings – Developed hybrid working models allowing for reduction of office space – Accelerating migration to digital and automated collection channels Digitalization – Digital self-service for debtor
Slide 7: Core priorities going forward
Core priorities going forward Investment Operations Investments partnerships – Sustainable lower cost base – Strong balance sheet will enable – Positive development in with several cost saving us to harvest from an expected servicing revenues, but initiatives carried out favourable market going unta
Slide 8: Financial performance
Financial performance B2HOLDING*
Slide 9: Second quarter 2021 summary
Second quarter 2021 summary 2021 2020 % 2021 2020 % 2020 – Strong unsecured collections at NOK million Q2 Q2 Δ H1 H1 Δ Full Year 102.5% of the latest forecast Net revenues 756 687 10% 1,518 1,451 5% 3,095 Adj. EBIT 321 245 31% 651 514 27% 1,246 – Solid secured recoveries - both cash Adj. EBIT % 43%
Slide 10: Collection Performance
Collection Performance Unsecured collection performance REOs sold 1000 923 923 927 934 110% +15% Book Value 905 105% 146 Sales Proceeds 800 102% 102% 100% 100% 100% 100% 100% 127 101% 101% 100% 600 +28% 95% 72 400 93% 56 90% 200 85% 0 80% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 L12M Q2 2021 Collection Perform
Slide 11: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q2 2021 Additional investment capacity Cash earnings NOKm NOKm 669 516 473 438 437 253 264 204 220 192 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Deleveraging Lev.ratio Lev.ratio (adj) 3.2x 3.2x 3.0x 2.6x 2.5x 3.1x 2.9x 2.7x
Slide 12: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity L12M Gross Collections 1) L12M Operating expenses 2) – Initiated cost saving program Q2 2020 1,805 1,799 – Accumulated savings compared to Q1 2020 of NOK 316m 1,763 1,736 – Sustained lower cost base despite higher collections 1,677
Slide 13: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q2 NOKm NPL REOs Gross Collection & Net Margin REOs Geographical distribution Asset class distribution SEE Secured 1,638 WE 3%6% 0% 1,495 1,423 1,316 NOK 47% Pol NOK 1,276 Forward Flow 5
Slide 14: Deleveraging and increased liquidity reserve
Deleveraging and increased liquidity reserve Decreased leveraging and strong liquidity reserve Interest expenses decreasing due to lower debt NOKm – Net interest-bearing debt reduced by NOK 2.5bn year-on-year 14,000 Net interest-bearing debt Interest expenses1) 250 • NOK 1.8bn adjusted for FX effect
Slide 15: Summary
Summary B2 HOLDING:
Slide 16: Key takeaways
Key takeaways Strong collection Improved collection Solid cash flow and Promising Higher visibility Well positioned to performance in efficiency coupled reduced leverage pipeline for REO in NPL pipeline take advantage of a all asset classes with increased sales – increased with increased growing NPL
Slide 17: Q&A
Q&A B2 HOLDING:
Slide 18: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA EBITDA NOKm NOKm Cash EBITDA Cash margin NOKm EBITDA EBITDA margin 71% 71% 69% 69% 67% 1 014 977 927 932 905 47% 831 45% 45% 45% 813 762 756 39% 398 687 387 352 364 272 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'20 Q3'20 Q4
Slide 19: Second quarter 2021 summary
Second quarter 2021 summary 2019 2019 2020 2020 2020 2020 2021 2021 NOKm Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net revenues 831 762 756 764 687 813 EBIT 355 330 341 387 291 255 245 369 Profit (loss) after tax 123 130 162 181 90 24 34 128 Cash revenue 1,348 1,349 1,424 1,369 1,492 1,396 1,364 1,342 Cash EBITDA 932
Slide 20: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 26,528 5,628 25,298 24,616 23,809 Pol 23,100 22,262 20,840 20,440 4,377 NE 15,264 2,575 CE 9,489 1,939 1,441 WE 1,105 838 618 451 SEE 346 2016 2017 2018 2019 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 1 2 3 4 5 6
Slide 21: Portfolio diversification
Portfolio diversification Year 120m Total Unsecured 1 2 3 4 5 6 7 8 9 10 ERC ERC Pol 809 600 435 331 254 190 141 103 79 60 3,003 3,159 NE 1,507 1,255 1,037 864 711 585 486 402 330 273 7,450 8,402 CE 304 261 213 164 127 90 52 24 14 7 1,258 1,262 WE 222 185 151 108 84 66 45 27 6 1 893 893 SEE 571 505
Slide 22: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) NOKm 2021 Q2 2020 Q2 Change % Highlights & KPIs Total revenues 255 243 5% – Portfolio purchase volume of NOK 98m in the quarter EBIT 153 136 13% Profit margin (%) 60% 56% 4pp – Gross collection of NOK 443m ERC 8,441
Slide 23: Western Europe (WE)
Spain, Italy and France Western Europe (WE) NOKm 2021 Q2 2020 Q2 Change % Highlights & KPIs Total revenues 94 105 -10% – Portfolio purchases of NOK 7m in the quarter EBIT 6 16 -64% – Gross collection of NOK 114m Profit margin (%) 6% 15% -9pp ERC 2,395 2,992 -20% Portfolio purchases Cost to Collect 4
Slide 24: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) NOKm 2021 Q2 2020 Q2 Change % Highlights & KPIs Total revenues 160 135 19% – Portfolio purchases of NOK 0m in the quarter EBIT 63 82 -22% – Gross collection of NOK 257m Profit margin (%) 40%
Slide 25: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) NOKm 2021 Q2 2020 Q2 Change % Highlights & KPIs Total revenues 121 60 101% – Portfolio purchases of NOK 12m in the quarter EBIT 32 -7 -574% – Gross collection of NOK 177m Profit margin (%) 27% -11% 38pp ERC 2,720 3,469 -22% Portfolio pu
Slide 26: Poland
Poland Poland NOKm 2021 Q2 2020 Q2 Change % Highlights & KPIs Total revenues 182 159 15% – Portfolio purchases of NOK 103m in the quarter EBIT 130 57 127% – Gross collection of NOK 276m Profit margin (%) 71% 36% 35pp ERC 3,394 3,823 -11% Portfolio purchases Cost to Collect 103 78 31% 58 21% 19 2020
Slide 27: 20 largest shareholders
20 largest shareholders # Shareholder No. of shares Percentage 1 PRIORITET GROUP AB 52,913,000 12.91 % 2 RASMUSSENGRUPPEN AS1) 51,873,266 12.65 % 3 VALSET INVEST AS 26,000,000 6.34 % 4 STENSHAGEN INVEST AS 24,600,143 6.00 % 5 VERDIPAPIRFONDET ALFRED BERG GAMBA 15,271,688 3.73 % 6 DNB MARKETS AKSJEHA
Slide 28: Definitions
Definitions – 120-month ERC: Estimated remaining collection, which expresses the gross collection in face value expected to are classified as inventories in accordance with IAS 2. be collected in the future over a 120-month period from the purchased portfolios owned at the reporting date. The 120-mo
Slide 29: Definitions (cont'd)
Definitions (cont’d) – Interest income from purchased portfolios: Interest income from purchased loan portfolios is the calculated – Net revenues: Net revenues are the Total revenues reported less the Cost of collateral assets sold, including amortised cost interest revenue from the purchased loan p
Slide 30: IR contact
IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations +47 952 55 842 www.b2holding.no rh@b2holding.no +47 22 83 39 50 post@b2holding.no