B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Goldman Sachs EMEA Leveraged Finance Conference 2022
23 slides from B2 Impact Asa's conference presentation, Sep 6, 2022
Slide 1: Investor presentation
Investor presentation Goldman Sachs - EMEA Leveraged Finance Conference 6 September 2022 Photo: Adrian / Unsplash
Slide 2: Today’s presenters
Today’s presenters Erik Johnsen André Adolfsen Rasmus Hansson Chief Executive Officer Chief Financial Officer Head of Commercial Strategy & Investor Relations 2 B2Holding ASA Goldman Sachs - 6 September 2022
Slide 3: Company overview
Company overview B- HOLDING’
Slide 4: This is B2Holding
This is B2Holding NOKm Q2’22 Q2’21 Change % SEE Net revenues 748 756 -1% 12% WE 11% NE Adjusted EBIT 330 321 3% 40% NOK Adjusted EBIT Margin 42% 43% 0% 19.9bn 16% CE EBIT 139 341 -59% 20% ERC 19,867 20,440 -3% Pol Gross Collection 1,245 1,407 -12% #FTEs 1,919 2,102 -9% 22 platforms in Europe with va
Slide 5: Strategic journey – New B2Holding is taking shape
Strategic journey – New B2Holding is taking shape – Detailed underwriting carried out by – Senior financing agreement with PIMCO – Closing of funding from PIMCO reputable investment firms signed – Sale of DCA Bulgaria as an – In parallel, the secured servicing team – Initiated legal segregation of a
Slide 6: Improved scalability across our markets
Improved scalability across our markets Secured markets (Veraltis Asset Management) Unsecured markets 600 12 000 900 20 000 15 000 400 8 000 600 10 000 200 4 000 300 5 000 - - - - Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22
Slide 7: Proven ability to deliver on set targets
Proven ability to deliver on set targets Targets Achievements Strong collections1) Cash Collections (NOKm) 1,229 1,214 1,246 – Refinance RCF 1,191 1,136 – Repayment of existing Improved flexibility and liquidity due to: bridge facility – PIMCO funding – Extension of maturity – RCF extension profile
Slide 8: ESG commitment showing results
ESG commitment showing results Substantially improved the ESG Risk rating from Sustainalytics, ESG Risk rating 9.3 ranking us at the top of our industry and within the top 1 % of rated companies globally – B2Holding is considered to be at negligible ESG risk: Negligible Risk • Low exposure of materi
Slide 9: Highlights Q2 2022
Highlights Q2 2022 Operations – Unsecured collections and secured recoveries above the latest forecast – Positive trend for REO sales continued Effectiveness & efficiency – In the final stages of the strategic restructuring period – Continue to improve scalability across our markets Investments – In
Slide 10: Market overview
Market overview B- HOLDING’
Slide 11: Overview of the European NPL market (I/II)
Overview of the European NPL market (I/II) B2Holding covers ~75% of the total EU NPL market Total volume of bank NPLs in Europe exceed EUR 400bn. Three largest markets account for +60% as of Q1’22 110 NPLs (EURbn) NPL ratio(%) 81 7% 60 4% 4% 4% 4% 4% 3% 3% 3% 3% 3% 3% 30 28 2% 2% 2% 1% 2% 2% 2% 15 1
Slide 12: Market activity and volumes are up
Market activity and volumes are up Active quarter with increase in number and volume of deals evaluated Significant increase in portfolios acquired versus prior quarter and same quarter last year At the end of second quarter, NOK 1bn were invested in new portfolios and NOK 350m committed for the rem
Slide 13: Financial performance
Financial performance B- HOLDING’
Slide 14: Second quarter 2022 summary
Second quarter 2022 summary Quarterly summary Comments LTM Q2 NOKm Q2 2022 Q2 2021 %Δ H1 2022 H1 2021 – Strong underlying collection 2022 Cash collections 1,246 1,229 1% 2,459 2,530 4,787 performance • Unsecured collections at 106% Net revenues 748 756 -1% 1,464 1,518 2,983 • Secured collection at 2
Slide 15: Collection performance and improvements
Operational improvements Collection performance and improvements Unsecured collection performance, NOKm REOs sold, NOKm Collection Performance %1) Book Value Sales Proceeds 934 949 926 +32% 853 848 106% 239 102% 103% 102% 102% 100% 181 +34% 103 77 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q2’22 H1’22 Secured re
Slide 16: Improved cash earnings, investment capacity and deleveraging
Investments & capital funding Improved cash earnings, investment capacity and deleveraging Cashflow Q2 2022 Additional investment capacity NOKm NOKm 758 552 516 503 225 479 949 220 237 239 226 78 -758 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Leverage Lev.ratio 395 -22 2.5x 2.4x 2.4x 2.4x 2.3x -169 226 Cash Wor
Slide 17: Strong cash collections and stable underlying cost base
Effectiveness & efficiency Strong cash collections and stable underlying cost base Cash collections (constant FX), NOKm Stable development in cost to cash revenue, NOKm – Strong collection performance in unsecured despite increased – Cash revenues and Cash EBITDA1) have remained stable over the year
Slide 18: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Cash collection, NOKm Portfolio investments in Q2 NPL REOs Cash collection Cash EBITDA Geographical distribution Asset class distribution WE SEE CE Unsecured Forward Flow 1,229 1,246 3% 1,214 0% 1,191 20% 4% 1,136 NOK 48% NE NOK 758m 75
Slide 19: New capital structure post funding
New capital structure post funding Debt maturity profile Improved flexibility and liquidity EUR millions Outstanding bonds Utilised RCF Utilised SFA Treasury bonds Unutilised RCF Unutilised SFA – Refinancing of the RCF1 was completed in Q2 – Senior Financing Agreement closed I+2.9- E+4.25% E+4.75% E
Slide 20: Financial risk management
Financial risk management Currency risk Net borrowing basket SEK – Translational balance sheet exposure to main currencies hedged by Currency derivatives PLN 11% DKK – Currency derivatives are used to: • Obtain a balanced currency basket 16% EUR • Designed to utilize zero interest cap in RCF NOK 4%
Slide 21: Summary
Summary B- HOLDING’
Slide 22: Key takeaways
Key takeaways Collections and Improved Increased market Strong cash flow Closed senior recoveries scalability across activity and and proven financing continue on a markets volumes ability to agreement and positive trend deleverage extended RCF 22 B2Holding ASA Goldman Sachs - 6 September 2022
Slide 23: IR contact
IR contact B2Holding ASA Rasmus Hansson Cort Adelers gate 30, 7th floor Head of Commercial Strategy 0254 Oslo and Investor Relations +47 952 55 842 www.b2holding.no rh@b2holding.no +47 22 83 39 50 post@b2holding.no
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