B2 Impact Asa · OSL:B2I
B2 Impact Asa — Pareto Nordic Corporate Bond Conference 2024
13 slides from B2 Impact Asa's conference presentation, Mar 21, 2024
Slide 1: B2 Impact ASA
B2 Impact ASA Pareto Nordic Corporate Bond Conference 21 March 2024
Slide 2: This is B2 Impact
This is B2 Impact NOKm 2023 2022 %∆ Cash collections 6 164 5 161 19% Core unsecured markets Net revenues 3 775 3 085 22% Secured markets (Veraltis) Adj. EBIT 1 696 1 334 27% Head office, Norway Adj. EBIT % 45% 43% 2 pp Investment office, Luxembourg EBIT 1 578 1 029 53% Adj. Net profit 483 564 -14% C
Slide 3: 2023 highlights 2024 priorities
2023 highlights 2024 priorities New brand launched Focused on scalability in core unsecured markets → Selective investment approach Streamlined organizational structure to reduce costs and improving returns Reduced footprint → Further reduce cost of debt Portfolio investments within the gu
Slide 4: Capital discipline in combination with strong cash flow and growth in investments
Capital discipline in combination with strong cash flow and growth in investments NOKm Portfolio investments LTM Cash EBITDA LTM Leverage ratio • Lowest leverage ratio in the industry 4 752 • Strong cash flow with Cash EBITDA of NOK 4.75bn 3 665 • Growth in investments with improved returns 2 741 •
Slide 5: Improving returns and lower cost of debt
Improving returns and lower cost of debt Indicative returns on portfolio investments Floating euro rates (EURIBOR) • The industry is expected to be at the beginning of a new attractive investment cycle – Latest reported numbers from European Banking Authority show an increase in NPL volumes after a
Slide 6: Collection Performance excl. JVs
Collection Performance excl. JVs Unsecured collection performance REO sales Collection Performance % Book value Sales proceeds 4213 3 698 +48% 3 641 3 562 +41% 581 105% 499 102% 103% 99% 392 353 2020 2021 2022 2023 2022 2023 Secured collections Cash collections REO sales Repossessions • Continued Un
Slide 7: Improving OPEX ratio despite growth in collection and inflationary pressure
Improving OPEX ratio despite growth in collection and inflationary pressure 1) 1,2) Cash revenue LTM Operating expenses LTM • Continued growth in unsecured collections • Positive cash and opex development in the quarter • Solid cash contribution from Secured • Opex increase driven by variable cost t
Slide 8: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Growing cash collections and stable ERC1) Portfolio investments in 2020-2023 NOKm NPL Unsecured NPL Secured Cash collections Investments Geographical distribution Asset class distribution SEE 16% Unsecured Forward Flow 6 164 WE 5 161 8%
Slide 9: Lower leverage and lower cost of debt
Lower leverage and lower cost of debt Outstanding bonds Utilised RCF Unutilised RCF Utilised SFA Unutilised SFA • Bond refinancing in Q1 2024 – Bond issue of EUR 100m at 5.00% margin I+2.9-3.75% E+6.90% E+4.55% E+5.00% – Bond issue tap of EUR 50m at 101,25 to par (spread 4.61%) – Repaid Bond 5 of EU
Slide 10: B2 Impact with improved credit rating
B2 Impact with improved credit rating Rating agency CFR1 Outlook Bond Rating2 B2 Impact’s management has also ensured timely refinancings and adequate back-up facilities in order to mitigate refinancing risks during periods of potentially Ba2 Stable Ba3 constrained capital market access. - Moody’s (
Slide 11: Successful deleveraging coupled with strong financials drives improved credit spread
Successful deleveraging coupled with strong financials drives improved credit spread Positive credit spread development Improved credit spread following new bond issue bps 1500 • Spread historically lagging to peers 1300 • Step by step improved comparable metrics through long term focus on deleverag
Slide 12: Key credit highlights
Key credit highlights Well-positioned to take advantage of favorable market dynamics Proven track record of deleveraging capabilities and investment discipline Reduced footprint and more concentrated investment approach Reduced cost of funding through latest bond refinancing and active hedging polic
Slide 13: b2-impact.com
b2-impact.com IR contact Rasmus Hansson Head of Investor Relations and M&A +47 952 55 842 rasmus.hansson@b2-impact.com B2 Impact Cort Adelers gate 30, 7th floor 0254 Oslo, Norway +47 22 83 39 50 post@b2-impact.com
B2 Impact — Pareto Nordic Corporate Bond Conference 2024 on 6ix