B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Arctic Debt Collection Seminar 2019
17 slides from B2 Impact Asa's conference presentation, Jan 10, 2019
Slide 1: Debt Collection Seminar
Debt Collection Seminar Olav Dalen Zahl, CEO and Erik J. Johnsen, CFO - Oslo, 10 January 2019
Slide 2: B2Holding Group – Third quarter overview
B2Holding Group – Third quarter overview NOKm YTD Q3’2018 YTD Q3’2017 Change% Revenues 2,153 1,461 47 % EBIT 1,052 683 54 % EBIT margin 49% 47% 4% ERC 20,608 12,191 69% Gross Cash Collection 2,829 1,829 55% #FTEs 2,284 1,688 35% #Claims ~7.1m ~5.9m 20% Face value of portfolios ~152bn ~77bn 97% WE |2
Slide 3: Strong and experienced Group management
Strong and experienced Group management Group functions Regional Directors Erik J. Johnsen Tore Krogstad Chief Financial Officer RD Scandinavia Danckert Mellbye Kari Ahlström Chief Org & Improvement RD Finland & Baltics Officer Jeremi Bobowski Maria Haddad Chief Investment Officer RD Western Europe
Slide 4: Track record of delivering on our strategy
Track record of delivering on our strategy Key developments since IPO Strategy in IPO-prospectus Focus on maturing markets with Entered seven new markets, including the four largest NPL markets in Europe higher IRRs and strengthen market Increased position in both growth and maturing markets in Euro
Slide 5: Strong financial performance
Strong financial performance Total ERC and portfolio acquisitions Total revenues NOKm NOKm 761 746 702 1,951 1,485 2,273 988 646 14% 15% 622 1% 1% 519 14% 16% 3% 1% 12% 4% 20,119 20,608 84% 84% 18,116 82% 15,264 82% 12,191 85% Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Total ERC Por
Slide 6: Established as one of top ten European debt collectors
Established as one of top ten European debt collectors European countries present (#) Estimated remaining collection (120m ERC, EURm) 24 4 202 23 3 318 23 2 848 14 2 728 11 2 211 10 2 166 7 1 930 6 1 925 5 1 674 5 1 514 Source: Company information and J.P.Morgan Credit Management Services Valuation
Slide 7: Access to a vast opportunity set for the future
Access to a vast opportunity set for the future Coverage of 78% of the EU NPL stock across our 23 countries European 200 bank NPL per country1 50 EURbn 45% Total volume of banking NPLs in Europe exceed EUR 780bn. 180 - Italy, France, Spain and Greece, the four largest markets, account for ca. 45 65%
Slide 8: A major player in all our regions
A major player in all our regions Northern Europe Poland Western Europe Central Europe South East Europe Market position Top 3 Top 3 Top 10 Top 3 Top 3 ERC NOK 5.33bn NOK 3.42bn NOK 2.30bn NOK 5.68bn NOK 3.87bn 1% 8% 22% 23% % of ERC Secured 33% Secured vs. 8% Unsecured Secured Unsecured 67% Unsecur
Slide 9: Trends in key countries for B2Holding
Trends in key countries for B2Holding % of total portfolio ERC Development unemployment rate Northern Europe Top 3 countries Western Europe Top 3 countries Key countries possess almost 95% of 2016 2017 2018E 2016 2017 2018E Group total portfolio (measured as % of total portfolio ERC). 19,6% 8,8% 8,5
Slide 10: Key figures used in the sector
Key figures used in the sector KPI Description Money Multiplier (MM) Is the sum of gross expected cash flows (ERC) divided by the portfolio purchase price. Is the expected net return before tax on a portfolio investment based on gross expected cash Net IRR flow less cost to collect on a given portfo
Slide 11: Key figures used in the sector
Key figures used in the sector Different portfolios with different MM and ERC but same net IRR, will have the same return on investment over time given reinvestment of the amortized amount in the same type of portfolio Secured portfolio Portfolio Characteristics 250 000 150% MM 1,5 Short curve 200 0
Slide 12: Diverse portfolio mix – good returns regardless of money multiples
Diverse portfolio mix – good returns regardless of money multiples Secured portfolios and forward flows provide lower cash multiples, but not lower returns Unsecured portfolios: good returns with high cash-on-cash multiples and long-term recoveries Cash multiples depend on asset type Forward flow tr
Slide 13: Capital structure
Capital structure Funding structure with sound leverage levels, significant financial flexibility and supporting liquidity reserves Strategy Staggered maturity profile with ample liquidity headroom EUR millions Equity, bond and bank debt is used to get access to capital when larger Lev Ratio NOK 6bn
Slide 14: Partnerships for large portfolios – higher capacity, lower risk
Partnerships for large portfolios – higher capacity, lower risk B2Holding is actively pursuing joint ventures to gain access to a larger pipeline Following a successful co-investment with EOS in Romania in 2016, new partnerships developed in 2018 Own licensed servicing platform launched in Greece B2
Slide 15: Quarterly purchase volume: NOK 988m in Q3
Quarterly purchase volume: NOK 988m in Q3 Portfolio purchase volumes Comments NOKm Strong volume for a third quarter 2014 2015 2016 2017 2018 - 41% increase compared to Q3 2017 2 273 Portfolios acquired in Northern Europe and Western Europe, represents 63% of portfolio purchases in the quarter 1 951
Slide 16: Highly diversified portfolio yielding stable and predictable cash flows
Highly diversified portfolio yielding stable and predictable cash flows: Total gross ERC of approx. NOK 20.6bn (69% growth y-o-y) Development in total gross ERC1) Portfolio details (total gross ERC)1) NOKm NOKm Claims (#): Face value (NOK): Geography distribution Distribution by type SEE Poland ~7.1
Slide 17: Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47
Stortingsgaten 22 | P.O. Box 1726 Vika | N-0121 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: post@b2holding.no