B2 Impact Asa · OSL:B2I
B2 Impact Asa — Debt Investor Presentation (March 2025)
50 slides from B2 Impact Asa's debt investor presentation, Mar 24, 2025
Slide 1: Investor presentation – Senior Unsecured Bond Issue
Investor presentation Senior Unsecured Bond Issue 24 March 2025
Slide 2: Important information and disclaimer (1/3)
Important information and disclaimer (1/3) This investor presentation, together with its enclosures and appendices (collectively, the "Presentation"), any loss howsoever from any use of this Presentation or its contents or otherwise arising in connection has been produced by B2 Impact ASA (the "Comp
Slide 3: Important information and disclaimer (2/3)
Important information and disclaimer (2/3) The merits or suitability of investing in any securities previously issued or issued in the future by the the United States Securities and Exchange Commission or registered under the U.S. Securities Act or any Company for any investor's particular situation
Slide 4: Important information and disclaimer (3/3)
Important information and disclaimer (3/3) Please see the application form for further applicable selling and transfer restrictions. Any investment in the Company involves inherent risks and is suitable only for investors who understand the risks associated with this type of investment and who can a
Slide 5: Summary of risk factors (1/2)
Summary of risk factors (1/2) Investing in bonds and other securities issued by the Company involves inherent risks, and a number of risk factors may adversely affect the Company. Potential investors should consider, among other things, the Risk Factors set out in this Presentation before making an
Slide 6: Summary of risk factors (2/2)
Summary of risk factors (2/2) RISKS RELATED TO THE BUSINESS IN WHICH WE OPERATE (CONTINUATION) • We may not be able to hire and retain enough sufficiently trained personnel to support our operations. • Increases in labour costs, potential labour disputes and work stoppages could negatively affect ou
Slide 7: Agenda
Agenda 1. Transaction overview 2. Company overview 3. Financial performance 4. Risk factors 5. Appendix 7 B2 Impact Impact Credit Investor Presentation
Slide 8: Transaction overview
Transaction overview 8 B2 Impact Impact Credit Investor Presentation
Slide 9: Transaction summary
Transaction summary Background and sources & uses Group structure and pro forma capital structure • B2 Impact ASA (the “Issuer” or the “Company”) is a debt solutions provider B2I07 + B2I08 Sr. unsec. EUR 450m specialized in investing in, and the recovery of, non-performing unsecured and B2 Impact AS
Slide 10: Key terms and conditions
Key terms and conditions Issuer: B2 Impact ASA Status of the bonds: Senior unsecured CFR (Moody’s / S&P): Ba2 / BB- Bond rating (Moody’s): Ba3 (expected) Initial issue amount: EUR 100-200 million (expected) Maximum issue amount: EUR 350 million Purpose of the bond issue: Refinancing and general corp
Slide 11: Today's presenters
Today’s presenters Trond Kristian Andreassen André Adolfsen Rasmus Hansson Chief Executive Officer Chief Financial Officer Head of Investor Relations and M&A 11 B2 Impact Credit Investor Presentation
Slide 12: Company overview
Company overview 12 B2 Impact Impact Credit Investor Presentation
Slide 13: This is B2 Impact
This is B2 Impact Key financials1 2 24 Total ERC as of Q4’24 F Core unsecured markets Cash collections 2 s Secured Secured markets (Veraltis) evenues Head office, Norway pe 2 Investment office, Luxembourg NOK BIT 25.5bn BIT et profit nsecured Cash revenue Cash BIT A Cash margin everage 22 • One of t
Slide 14: 2024 highlights and 2025 priorities
2024 highlights 2025 priorities ✓ Increased collection performance and opex trending down ✓ Improved efficiency through use of AI and automation → Profitable and sustainable growth in investments ✓ Significantly reduced cost of debt going forward → Focused investment approach to drive cost scalabili
Slide 15: Technology and analytics driving efficiency
Technology and analytics driving efficiency • Improved collection performance through use of automation, Unsecured collections per FTE digitalization and AI K‘ (constant FX) • Increasing investments in technology • More scalable cost base • Highly competent people with potential to create an even mo
Slide 16: Investments in 2025 focused on unsecured markets
Investments in 2025 focused on unsecured in 12 markets • Successfully diverted towards unsecured investments last 5 years • Capacity to increase investments with marginal increase in costs Investment focus 2025 • Strengthened position in the Nordics with the acquisition of unsecured portfolios and p
Slide 17: Attractively positioned with increasing market opportunities
Attractively positioned with increasing market opportunities Capital constraints in the industry Attractive and competitive cost of debt Increasing market activity for both primary and secondary transactions The high investment activity in Q4 2024 has continued into Q1 2025 Around 50% of FY 2025 tar
Slide 18: Financial performance
Financial performance 18 B2 Impact Impact Credit Investor Presentation
Slide 19: Leverage ratio reduced while maintaining strong collections and cash flow
Leverage ratio reduced while maintaining strong collections and cash flow Growth and leverage Unsecured collections NOKm ortfolio investments Cash BIT A everage ratio NOKm erformance Collections 2 2 22 22 2 2 2 2 2 22 2 2 2 2 2 2 2 2 2 22 2 2 2 2 19 B2 Impact Credit Investor Presentation
Slide 20: Collection Performance excl. JVs
Collection Performance excl. JVs Unsecured collection performance REO sales 2 2 2 2 2 2 2 2 22 2 2 2 2 2 2 2 2 Collection erformance Book value Sales proceeds Secured collections 2 2 2 2 2 2 2 22 2 2 2 2 Cash collection sales epossessions 20 B2 Impact Credit Investor Presentation
Slide 21: Increased cost scalability and lower costs compared to pre-pandemic levels
Increased cost scalability and lower costs compared to pre-pandemic levels Cash revenue1 Operating expenses1,2 • Continued growth in unsecured collections • Personnel costs continue to trend down 2 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 2 2 2 2 2 2 22 2 2 2 2 Collections unsecured Secured cash sales ther ca
Slide 22: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Portfolio investments Investments 2021 to 2024 of NOK 8.4bn Geographical distribution Asset class distribution ol nsecured NOK NOK 8.4bn C 8.4bn nsecured Forward Flow 2 S Secured 2 Total ERC1 as of Q4 2 22 Geographical distribution Asse
Slide 23: Unsecured ERC growth providing long term stability in collections
Unsecured ERC growth providing long term stability in collections Forward 120m ERC in 2024 compared to 20191 Total ERC growth NOKm C C 2 NOKm Signed, not closed s 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 2 F 2 F 2 2 23 B2 Impact Credit Investor Presentation 1) Does not include sale of REOs, over-performance o
Slide 24: Positive comparable spread development reflecting consistent financial performance
Positive comparable spread development reflecting consistent financial performance Positive comparable spread development Amongst the best rated in the industry Spread (bps) 2 Moody’s1 S&P1 B2I average Peer average B2 Impact, Moody's (lhs) B2 Impact, S&P (rhs) 700 Ba1 BB+ 600 Ba2 BB 500 Ba3 BB- 400
Slide 25: Significantly reduced interest cost and no short-term maturities
Significantly reduced interest cost and no short-term maturities • Refinancing in 2024 and continuously improved credit spread Capital Structure (EURm) – EUR 100m tap in Q4 at 101.5 % to par (equivalent to 3.47 % margin) nutilised CF tilised CF utstanding bonds • Interest costs down almost 30% • Hed
Slide 26: Full-year investments and dividend funded by operational cash flow
Full-year investments and dividend funded by operational cash flow Cash flow FY 2024 Additional investment capacity NOKm ecrease Total NOKm ortfolio investments Cash arnings 2 2 22 22 2 2 22 2 2 Low leverage ratio ev ratio 2 2 22 2 Cash orking ortfolio ther Free cash Financials Cash ividend Cash BIT
Slide 27: Solid and flexible financial position
Solid and flexible financial position Debt maturity profile per Q4’2 24 Debt maturity profile per Q4’2 24 pro forma utstanding Bonds tilised CF ew bond issue nutilised CF I+2.80-3.90% E+5.00% E+3.90% I+2.80-3.90% E+5.00% E+3.90% E+[●]% 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 27 B2 Impact Cre
Slide 28: Financial targets 2025
Financial targets 2025 • Portfolio investments of at least NOK 3bn • Leverage ratio below 2.5x • Maintain approximately same level of dividends for 2025 Portfolio investments of at least NOK 3bn Maintaining dividend distribution level1 ~1.5 ≥ 2 2 2 2 2 2 2 2 22 2 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 2 2 2
Slide 29: Summary and key credit highlights
Summary and key credit highlights Strong collection performance and scalable cost base Low leverage and credit risk Proven track record of deleveraging capabilities and investment discipline Reduced footprint and concentrated investment approach Uniquely positioned to grow investments and maintain m
Slide 30: Risk factors
Risk factors 30 B2 Impact Impact Credit Investor Presentation
Slide 31: Risk factors (1/8)
Risk factors (1/8) An investment in the Bonds involves risks. If any of the events described below actually occurs, our prevent us from purchasing otherwise desirable debt portfolios or prevent us from meeting our obligations business, results of operations, financial condition or prospects could be
Slide 32: Risk factors (2/8)
Risk factors (2/8) Our operations are highly dependent upon access to, and the functioning and integrity of, our core violation of data protection laws could have a material adverse effect on our business, results of operation IT applications, systems and infrastructure. and financial condition. Our
Slide 33: Risk factors (3/8)
Risk factors (3/8) The value of our existing portfolios may deteriorate, or we may not be able to collect sufficient Failure to successfully manage our forward flow agreements or replace terminated forward flow amounts on our portfolios to take advantage of opportunities for portfolio purchases as t
Slide 34: Risk factors (4/8)
Risk factors (4/8) We may not be able to obtain or maintain adequate insurance cover. or impairment of our ability to conduct business. This could in turn have a material adverse effect on our business, results of operation and financial condition. No assurances can be given that we will continue to
Slide 35: Risk factors (5/8)
Risk factors (5/8) We may purchase portfolios that contain accounts which are not eligible to be collected, and it may RISKS RELATED TO OUR FINANCIAL PROFILE not be possible for us to bring successful claims pursuant to purchase contracts or otherwise. Our leverage and debt service obligations could
Slide 36: Risk factors (6/8)
Risk factors (6/8) We are subject to covenants under our financing arrangements that limit our operating and Our hedging agreements may expose us to credit default risks and potential losses if our hedging financial flexibility. counterparties fall into bankruptcy. Our financing agreements contain o
Slide 37: Risk factors (7/8)
Risk factors (7/8) Risk of being unable to pay interest and principal on its indebtedness, including the Bonds hedge providers, trade creditors, and claims of preference shareholders (if any) of the subsidiary, will have priority with respect to the assets and earnings of the subsidiary over the cla
Slide 38: Risk factors (8/8)
Risk factors (8/8) An active trading market may not develop for the Bonds, in which case you may not be able to Credit ratings may not reflect all risks, are not recommendations to buy or hold securities and may resell the Bonds. be subject to revision, suspension or withdrawal at any time. There is
Slide 39: Appendix
Appendix 39 B2 Impact Impact Credit Investor Presentation
Slide 40: Experienced management team and streamlined organization
Experienced management team and streamlined organization CEO Trond Kristian Andreassen CFO Investments COO Risk, Compliance, ESG Master & Special Servicing André Adolfsen Endre Solvin-Witzø Adam Parfiniewicz Jeremi Bobowski George Christoforou 40 B2 Impact Credit Investor Presentation
Slide 41: Board members with strong industry experience
Board members with strong industry experience Harald L. Thorstein Chair of the Board New board members Ellen Hanetho Adele Bugge Norman Pran Henrik Wennerholm Jessica Sparrfeldt 41 B2 Impact Credit Investor Presentation
Slide 42: Quarterly trends
Quarterly trends 2 22 2 22 2 22 2 22 2 2 2 2 2 2 2 2 2 24 2 24 2 24 2 24 million Q Q2 Q Q4 Q Q2 Q Q4 Q Q2 Q Q4 Cash collections 2 2 2 2 2 2 evenues 2 2 Adj BIT 2 2 2 Adj BIT 2 2 BIT 2 2 2 Adj et profit 2 2 2 2 2 2 22 Cash revenue 2 2 2 2 Cash BIT A 2 2 2 Cash margin Collections 2 2 2 2 2 2 2 2 2 2 A
Slide 43: Portfolio diversification
Portfolio diversification1 nse ured ear ERC 2 4 2 m ERC Total ERC oland 2 2 2 2 2 2 2 2 C 2 2 2 2 2 2 S 2 2 2 2 2 Total 4 2 2 4 4 2 2 4 2 2 2 2 ear Se ured ERC 2 4 2 m ERC Total ERC oland 2 2 2 2 2 C 2 2 2 2 2 22 2 2 S 2 2 Total 4 2 4 4 22 2 Total 4 2 4 42 2 2 4 22 2 2 24 43 B2 Impact Credit Investo
Slide 44: Significant deleveraging and improved performance over last 4 years
Significant deleveraging and improved performance over last 4 years 1 NOKm book value s IB Cash BIT A Adj et profit 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 2 2 2 2 2 2 2 2 2 22 2 2 22 2 2 2 22 2 2 22 2 22 22 22 2 22 2 2 2 22 2 2 44 B2 Impact Credit Investor Presentation 1) ’22 includes K m signed late ecembe
Slide 45: Favourable development in headroom to covenants
Favourable development in headroom to covenants Comments Leverage ratio and ICR covenants everage ratio Interest Cover ratio • B2 Impact will continue to uphold a solid headroom to both earnings- and , , value-based covenants and headroom has increase significantly over the latest years , , , , , ,
Slide 46: Financial risk management
Financial risk management per ’2 Currency risk Net debt basket • Translational balance sheet exposure to main currencies hedged by Currency derivatives • Currency derivatives are used to: - Obtain a balanced currency basket NOK 9 492m S K - Designed to utilize zero interest cap in RCF KK • Cashflow
Slide 47: Share price development
Share price development Public listing Top shareholders2) • The shares were listed on NOTC, the Norwegian Over-The-Counter Market in # Shareholder Percentage December 2014 1 PRIORITET GROUP AS 14,36 % 3) 2 RASMUSSENGRUPPEN AS 13,32 % • In June 2016, the company listed on the Oslo Børs at a price of
Slide 48: Definitions
Definitions Actualisation Cash margin Actualisation is the difference between actual and forecasted collections for purchased loan portfolios for the reporting Cash margin consists of Cash EBITDA expressed as a percentage of cash revenue. period. Cash revenue Adjusted EBIT (Adj. EBIT) Cash revenue c
Slide 49: Definitions (cont'd)
efinitions (cont’d) Operating expenses (Opex) Other cash revenues Opex consists of external expenses of services provided, personnel expenses and other operating expenses. Other cash revenues consist of Other revenues added back Cost of assets sold Net debt Other revenues Net debt consists of nomina
Slide 50: 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