Slide 1: Investor Presentation 2020 Q4 Results
INVESTOR PRESENTATION 2020 Q4 RESULTS
Slide 2: Disclaimer
Disclaimer ∙ This presentation is of selective nature and is ∙ This presentation is not a legally binding document made to provide an overview of the Company’s and the Company has no liability for any direct or (AS DelfinGroup and its subsidiaries) business. indirect loss from the use of this presen
Slide 3: Top 2 industry player
Business Values: profile: Pawn loans Simplicity Consumer loans Top 2 2009 2020 Accessibility industry Established as a pawn broking 2nd largest nonbank consumer Brands: player chain lender in Latvia* Respect in Latvia Group: Key financials: Progress 89 279 34.4 m EUR Mastery branches emplyees net lo
Slide 4: Highlights
Consumer and Total loans EBITDA pawn loans issued outstanding (m EUR) Highlights (m EUR) (m EUR) In 2020 Q4 14,6 34,0 34,4 Group has increased issuance 13,5 32,5 2,6 31,6 32,3 level by 6.3% compared to 12,7 2,3 11,5 2,2 2019Q4. 2,1 2,1 2,0 8,5 Lower total issuance in 2020Q2 due to initial impact of
Slide 5: Consumer loans Market overview
Consumer loans Consumer loan portfolio, delfingroup vs. industry*** 6,9% Market 3,6% 4,4% 4,9% overview 2,0% 218,2 242,8 285,1 306,7 185,4 3,8 7,9 10,8 13,9 21,0 DelfinGroup* 2015 2016 2017 2018 2019 grows faster than Industry DelfinGroup Market share the industry, having ~7%** Amount of consumer lo
Slide 6: Consumer loans
26,8 Consumer 24,7 loans 20,3 20,2 19,9 In 2020Q4 portfolio have increased by 8.5% compared to 2020Q3. 9,4 9,3 Issuance level have increased in 2020Q4 7,8 6,5 by 19.2% compared to 2019Q4. 4,8 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 Loans issued, mEUR Net loan portfolio*, mEUR 6 * Loan portfolio data base
Slide 7: Consumer loans
Average loan tranche Average loan size size per issue per customer €218 €219 €221 €217 €934 Consumer €868 €702 €720 loans €172 €694 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 Weighted average Non-performing term of loans issued loans ratio 725 days 657 days 5,2%
Slide 8: Pawn loans Market overview
Pawn loans Pawn loan portfolio, delfingroup vs industry* 35% 34% Market 26% 29% 31% 7,4 overview 6,4 6,4 6,6 6,5 2,2 1,9 2,0 2,5 1,6 42% In 2019, of all pawn in Latvia loans issued 2015 2016 2017 2018 2019 by were issued by Industry DelfinGroup Market share DelfinGroup . Amount of pawn loans issued,
Slide 9: Pawn loans
Pawn loans 5,2 5,1 4,9 4,7 In 2020Q2 and 2020Q4 issuance 4,2 level have decreased for pawn 3,7 lending due to COVID-19 related restrictions that applies to branches and decreases client 2,5 2,5 2,3 2,3 2,1 flow in branches. 2,3 Thus portfolio have slightly fluctuated downwards in 2020Q4. 2019Q3 2019
Slide 10: Pawn loans
Average loan Pawn Redemption Pawn loans size per issue: mark-up: rate* Stable customer base 73% 74% 71% and stable performance €70 €68 71% 71% €67 €67 47% 45% 46% of pawnshop operations. €62 44% 43% 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2019Q4 2020Q1 2020Q2 2020Q3 202
Slide 11: Consumer and pawn loans issued Detailed COVID-19 impact
Consumer and pawn loans issued 5,5 5,0 Detailed 4,4 4,6 COVID-19 impact 4,2 4,1 3,9 4,0 3,9 dinamics 3,6 3,8 3,3 3,2 2,8 2,8 2,7 2,7 2,6 When new restrictions to reduce the 2,3 2,4 2,9 2,1 spread of COVID-19 are introduced, 2,0 issuance level decreases, but once the restrictions are lifted increase
Slide 12: Loans outstanding Detailed COVID-19 impact
Loans outstanding 26,8 24,7 19,9 20,3 20,2 18,7 17,3 Detailed 14,6 15,1 COVID-19 impact dinamics 2,1 2,1 2,0 2,3 2,5 2,3 2,3 2,5 2,1 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 In 2020Q4, portfolio have increased Consumer net loan portfolio*, mEUR Pawn net loan portfolio*
Slide 13: Key financials
Cash inflow* Key financials 14,1 15,3 14,2 15,2 14,6 12,6 12,7 In line with historical pattern, 2020Q4 delivered also 10,0 10,6 13,5 positive net cash Cash outflow* flow. 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 13 * From consumer lendin
Slide 14: Financial ratios
7,8 Financial 5,9 ratios 3,5 2,5 3,4 3,6 3,0 2,2 3,1 3,1 Sustainable 2016 2017 2018 2019 2020 financial performance. Net Debt / EBITDA ratio* Net Debt / Net Equity ratio 46% 44% 41% 35% 29% 2,2 2,2 2,3 2,4 2,1 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 Interest coverage ratio (IFRS 16 adjusted for 2019) EBI
Slide 15: Key financials: Profitability
Income statement, EUR’000 2019 Q4 2020 Q4 %, Y-O-Y Interest and similar income 16 382 17 455 7% Key financials: Gross profit from sale of goods 1 800 1 940 8% Cession result (1 499) (1 360) (9%) Profitability Gross profit 16 683 18 035 8% Selling expense (4 989) (5 483) 10% Decreased cession result
Slide 16: Key financials: Balance
Balance sheet, EUR’000 2020 Q3 2020 Q4 %, Q-O-Q Fixed and intangible assets 3 855 4 035 5% Loans to related parties 376 474 26% Key financials: Net loan portfolio Inventory and scrap 34 041 1 545 34 372 1 534 1% (1%) Other assets 365 654 79% Balance Cash 2 434 4 592 89% Strong cash buffer. Total ass
Slide 17: Financing structure
2020 Q3, 2020 Q4, Interest Interest-bearing debt Maturity EUR’000 EUR’000 rate, % Financing Secured bonds II* Secured bonds III* 438 5 000 - 5 000 15% 14% 12/2020 10/2021 structure Secured bonds IV* 4 566 5 000 14% 11/2022 Unsecured bonds 3 500 3 481 12% 11/2022 Diversified financing structure Peer-
Slide 18: Environmentally responsible workplace
Environmentally responsible workplace Electricity and petrol usage 178,1 168,8 Environmental 156,3 160,6 158,1 130,1 132,5 129,1 136,0 sustainability 59,0 62,6 55,5 58,4 58,3 55,9 46,3 60,2 50,8 DelfinGroup have received 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 quality and ener
Slide 19: Pawn shop as part of circular economy
Pawn shop as part of circular economy Environmental 36 996 sustainability 33 691 32 398 34 023 32 710 33 553 29 312 29 648 27 299 DelfinGroup promotes efficient use of resources 681 673 609 604 584 565 by returning workable 563 497 515 goods to secondary market. 368 302 229 202 173 166 153 142 148 2
Slide 20: Employees: Social responsibility
Employees Dynamics of the number of employees and gender diversity 279 272 273 Social 265 265 269 266 265 261 260 responsibility 64% 64% 62% 60% 59% 57% 56% 56% 56% 48% 52% 40% 41% 43% 44% 44% 44% 36% 36% 38% At the end of2020Q4 , the 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2
Slide 21: Employees: Social Responsibility
Employees Employees turnover and average employment time in company 4,7 Social 3,8 3,9 3,9 4,1 4,0 4,1 4,4 4,5 Responsibility 7% 7% 7% 6% 9% 6% 6% 5% 4% Increasing average employment time in Group indicates 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 satisfaction among employees.
Slide 22: Definitions for alternative performance measures
EBITDA NET Profit Margin Earnings before interest, taxes, depreciation and amortization How much net profit is generated as a percentage of revenue, calculated as Net Income + Interest + Taxes + Depreciation + calculated as Net Profit / Revenue. Used as an indicator of a Amortization. Used as a meas
Slide 23: SIA DelfinGroup contact details
SIA DelfinGroup Skanstes iela 50A Riga, Latvia, LV-1013 kristaps.bergmanis@delfingroup.lv +371 66 15 50 06 www.delfingroup.lv