B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q1 2022 Earnings Presentation
29 slides from B2 Impact ASA's earnings presentation, 2022
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Highlights Q1 2022
Highlights Q1 2022 Operations – Unsecured collections at 102 % of the latest forecast – Solid secured cash recoveries with record high REO sales Effectiveness & efficiency – Restructuring of secured business and closing of refinancing on schedule – Veraltis Asset Management established as master ser
Slide 3: Key figures Q1 2022 (NOKm)
Key figures Q1 2022 (NOKm) 3 B2Holding ASA Q1 2022 results presentation Comparable numbers for Q1 2021 below. 1) Prior period numbers are updated in accordance with adjusted definition for Cash revenue and Cash EBITDA – refer to the alternative performance measures section of the quarterly report fo
Slide 4: Market recovery continues during Q1
Market recovery continues during Q1 – More active market with greater volume of portfolios marketed – Increase in volume of deals evaluated and acquired versus same quarter last year – At end of quarter, more than NOK 700m invested and committed for 2022 – Expected total investments of ~NOK 3bn this
Slide 5: The new corporate structure is taking shape
The new corporate structure is taking shape Increased investment capacity and flexibility – Invest on our own book in unsecured markets to further drive scalability and profitability Unsecured Secured markets Secured markets – Established a cross-border Master Servicer with local markets servicing p
Slide 6: Key expected benefits after restructuring
Key expected benefits after restructuring Increased growth potential with additional investment capacity and flexibility in unsecured and secured De-risking of the balance sheet through co-investment driving increased servicing revenue New corporate Achieve scalability across all our servicing platf
Slide 7: Financial performance
Financial performance B HOLDING”
Slide 8: First quarter 2022 summary
First quarter 2022 summary – Strong underlying collection performance • Unsecured collections at 102% • Secured recoveries at 151% • REO sales of NOK 136m at a 30% margin – Cash Collections 7% up compared to Q4 – Cash EBITDA of NOK 934m, up from NOK 862m previous quarter – NRIs of NOK 40m mainly rel
Slide 9: Collection Performance
Collection Performance Unsecured collection performance REOs sold Secured recoveries – Consistent unsecured collection performance in line with last year in constant fx – Positive trend in Secured cash recoveries of NOK 323m… – …including REOs sold 30% above book value 9 B2Holding ASA Q1 2022 result
Slide 10: Cash earnings up sequentially driven by higher REO sales
Cash earnings up sequentially driven by higher REO sales Cash flow Q1 2022 Additional investment capacity NOKm NOKm Deleveraging Lev.ratio 10 B2Holding ASA Q1 2022 results presentation
Slide 11: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity Cash collections and recoveries (constant FX) Positive development in cost to cash revenue – Strong cash collections despite lower ERC… – Opex adjusted for NRIs of NOK 407m in the quarter compared to NOK 410m in Q1 last year – …dri
Slide 12: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) REO sales driving a positive trend in cash EBITDA vs. ERC Portfolio investments in Q1 NOKm Geographical distribution Asset class distribution NOK NOK 239m 239m Total ERC as of Q1 Geographical distribution Asset class distribution NOK NO
Slide 13: New capital structure post RCF refinancing and PIMCO funding
New capital structure post RCF refinancing and PIMCO funding Improved duration and liquidity Improved flexibility and liquidity EUR millions Outstanding bonds Utilised RCF Senior financing facility Treasury bonds Unutilised RCF – Increased facility line under RCF to EUR 610m – Full flexibility to ut
Slide 14: Summary
Summary B HOLDING”
Slide 15: Key takeaways
Key takeaways Restructuring for Collections and Refinanced RCF New dividend Better pipeline future growth recoveries at improved policy allows for and increased continued on a terms increased investment positive trend distribution to capacity shareholders 15 B2Holding ASA Q1 2022 results presentatio
Slide 16: Q&A
Q&A B HOLDING”
Slide 17: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm NOKm NOKm 17 B2Holding ASA Q1 2022 results presentation
Slide 18: First quarter 2022 summary
First quarter 2022 summary 18 B2Holding ASA Q1 2022 results presentation 1) Includes the Group’s share of gross collection for portfolios purchased and held in SPVs and joint ventures 2) Including the Group’s share of portfolios purchased in SPVs and joint ventures
Slide 19: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 19 B2Holding ASA Q1 2022 results presentation 1)Including the Company’s share in JVs
Slide 20: Portfolio diversification
Portfolio diversification 20 B2Holding ASA Q1 2022 results presentation ERC including the Group’s share of portfolios acquired and held in SPVs and joint ventures. Disclaimer: B2Holding ASA emphasizes that every assessment of future conditions necessarily involves an element of uncertainty.
Slide 21: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs – Portfolio purchase volume of NOK 102m in the quarter – Gross collection of NOK 364m Portfolio purchases Cost to Collect 21 B2Holding ASA Q1 2022 results presentation
Slide 22: Poland
Poland Poland Highlights & KPIs – Portfolio purchases of NOK 97m in the quarter – Gross collection of NOK 260m Portfolio purchases Cost to Collect 22 B2Holding ASA Q1 2022 results presentation
Slide 23: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs – Portfolio purchases of NOK 20m in the quarter – Gross collection of NOK 204m Portfolio purchases Cost to Collect 23 B2Holding ASA Q1 2022 results presentation
Slide 24: Western Europe (WE)
Spain, Italy and France Western Europe (WE) Highlights & KPIs – Portfolio purchases of NOK 3m in the quarter – Gross collection of NOK 86m Portfolio purchases Cost to Collect 24 B2Holding ASA Q1 2022 results presentation
Slide 25: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs – Portfolio purchases of NOK 17m in the quarter – Gross collection of NOK 176m Portfolio purchases Cost to Collect 25 B2Holding ASA Q1 2022 results presentation
Slide 26: 20 largest shareholders
20 largest shareholders 26 B2Holding ASA Q1 2022 results presentation Updated per 10 May 2022 1) Total shareholdings of Rasmussengruppen AS includes shareholdings of its fully owned subsidiaries Portia AS, Cressida AS and Viola AS
Slide 27: Definitions
Definitions – Actualisation: Actualisation is the difference between actual and forecasted collections for purchased loan – Collateral asset: In connection with the acquisition and recovery of purchased loan portfolios, the Group may portfolios for the reporting period. become owner of assets such a
Slide 28: Definitions (cont'd)
Definitions (cont’d) – Interest income from purchased portfolios: Interest income from purchased loan portfolios is the calculated – Operating cash flow per share: Operating cash flow per share is operating cash flow from consolidated statement of amortised cost interest revenue from the purchased l
Slide 29: b2holding.no
b2holding.no IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations www.b2holding.no +47 952 55 842 +47 22 83 39 50 rh@b2holding.no post@b2holding.no