B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q4 2022 Earnings Presentation
31 slides from B2 Impact ASA's earnings presentation, February 2023
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Quarter highlights and yearly summary
Quarter highlights Yearly summary – Continued strong performance in cash collections and – Finalized reorganization of secured business secured recoveries – Established Veraltis Asset Management – master and • Unsecured collections at 101.4% of the latest forecast special servicer • Secured cash col
Slide 3: Key figures Q4 2022 (NOKm)
Key figures Q4 2022 (NOKm) 3 Comparable numbers for Q4 2021 below. B2Holding ASA Q4 2022 results presentation 1) Adjusted Net profit consists of Profit/(loss) after tax adjusted for Non-recurring items reduced by the tax rate for the period. 2) Includes NOK 435m signed late December, closed in Janua
Slide 4: Significant deleveraging and improved performance over last 3 years
Significant deleveraging and improved performance over last 3 years 1 NOKm 4 B2Holding ASA Q4 2022 results presentation 1) Includes NOK 435m signed late December, closed in January
Slide 5: The debt collection industry has proven resilient through cycles
The debt collection industry has proven resilient through cycles Long Term Macro Trends1 Market trends: GDP Growth y/y% Inflation (CPI y/y%) Unemployment Rates 15 – Inflationary pressure expected to soften during 2023 13 11 – Low and uncertain GDP growth projections for 2023 9 7 – Softening, but res
Slide 6: Maintaining capital discipline in changing market dynamics
Maintaining capital discipline in changing market dynamics Portfolio investments up 39% versus same quarter last year – up 118% including transaction signed in Q4 but closed in Q1 Higher cost of funding will be reflected in portfolio underwriting Near term impact on portfolio activity expected until
Slide 7: Financial performance
Financial performance B HOLDING”
Slide 8: Fourth quarter 2022 summary
Fourth quarter 2022 summary – Cash collections up 6% FY • Unsecured collections at 101.4% c ll c i n • Strong secured cash collections of NOK 385m v nu in Q4 including REO sales of NOK 173m • Cash from JVs of NOK 188m – Cash EBITDA up 6% YoY – Signed investments of NOK 2.6bn in 2022 v nu – Leverage
Slide 9: Collection Performance excl. JVs
Collection Performance excl. JVs Unsecured collection performance REOs sold ll c i n f nc V lu S l c Secured recoveries – Continued Unsecured overperformance – 103.4% for 2022 FY – Secured cash collections up 26% for 2022 FY – REO sales above expectations at strong margins to book value c v i f l i
Slide 10: Strong cash earnings and low leverage
Strong cash earnings and low leverage Cash flow Q4 2022 Additional investment capacity NOKm nc c l NOKm f li inv n ning Stable leverage ratio Lev.ratio 10 B2Holding ASA Q4 2022 results presentation
Slide 11: Strong cash collections and stable underlying cost base
Strong cash collections and stable underlying cost base Cash collections (constant FX) Cash margin maintained despite inflationary pressure – Growth in unsecured collections and ERC – Opex ex NRIs up 5% for 2022 FY compared to 2021… – Significant cash contribution from REOs and secured JVs – …with c
Slide 12: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) Growing cash collections and growth in ERC Portfolio investments in Q4 NOKm 1 c ll c i n G c ll c i n Geographical distribution Asset class distribution S n cu l NOK NOK 769m n cu 769m S cu l Total ERC as of Q4 Geographical distribution
Slide 13: New capital structure post refinancing
New capital structure post refinancing Debt maturity profile, EURm1 Healthy maturity profile u n ing n ili nu ili ili S nu ili S – Extensive bond refinancing completed • B2H03 fully repaid in October (EUR 145m) E+4.75% E+6.35% I+2.9-3.75% E+6.90% E+4.55% • New EUR 150m tap issue in Jan/Feb • B2H04 c
Slide 14: New segment reporting from Q1 2023
New segment reporting from Q1 2023 Current structure New structure B2Holding B2Holding South Northern Central Western Poland Eastern Investments Servicing Europe Europe Europe Europe Unsecured Secured Unsecured Secured – Geographical regions corresponding to the countries where – Focus on our two ma
Slide 15: Summary
Summary B HOLDING”
Slide 16: Key takeaways
Key takeaways Solid performance Strongest ERC growth after Proposed dividend Maintaining in cash collections quarterly Cash a period of and share buyback capital discipline and secured EBITDA to date deleveraging of NOK 0.62 per in changing recoveries share (0.20 and market dynamics 0.42 respectivel
Slide 17: Q&A
Q&A B HOLDING”
Slide 18: ESG commitment showing results
ESG commitment showing results ESG Risk rating Substantially improved the ESG Risk rating from Sustainalytics, ranking us at the top of our industry and within the top 1 % of rated companies globally 8.7 Negligible Risk (assessment dated Dec 2022) – On December 21 2022, the ESG Risk Rating was impro
Slide 19: Quarterly trends
Quarterly trends c ll c i n v nu v nu gin ) G c ll c i n i i n f n f li ) f li uc c ll c S 19 B2Holding ASA Q4 2022 results presentation ) nclu ) nclu ing G u ’ G u ’ fg f c ll c i n f f li uc f li uc in S V n n in v n u l in S V n in v n u
Slide 20: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm v nu NOKm gin NOKm gin 20 B2Holding ASA Q4 2022 results presentation
Slide 21: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm l n S 21 B2Holding ASA Q4 2022 results presentation 1) nclu ing in January ny’ in V n K in ulg i and investments of NOK 435m signed late December, closed
Slide 22: Portfolio diversification
Portfolio diversification1) l n S l n S 22 B2Holding ASA Q4 2022 results presentation ) inclu ing G u ’ f signed late December, closed in January f li cqui n l in S V n in v n u and investments of NOK 435m
Slide 23: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs – Portfolio purchases of NOK 155m in the quarter v nu – Gross collection of NOK 383m gin ) Portfolio purchases Cash EBITDA & margin 23 B2Holding ASA Q4 2022 results presentation
Slide 24: Poland
Poland Poland Highlights & KPIs – Portfolio purchases of NOK 250m in the quarter v nu – Gross collection of NOK 276m gin ) Portfolio purchases Cash EBITDA & margin 24 B2Holding ASA Q4 2022 results presentation
Slide 25: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs – Portfolio purchases of NOK 15m in the quarter v nu – Gross collection of NOK 232m gin ) Portfolio purchases Cash EBITDA & margin 25 B2Holding ASA Q4 2022 results presenta
Slide 26: Western Europe (WE)
Spain, Italy and France Western Europe (WE) Highlights & KPIs – Portfolio purchases of NOK 261m in the quarter v nu – Gross collection of NOK 136m gin ) Portfolio purchases Cash EBITDA & margin 26 B2Holding ASA Q4 2022 results presentation
Slide 27: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs – Portfolio purchases of NOK 88m in the quarter v nu – Gross collection of NOK 152m gin ) Portfolio purchases Cash EBITDA & margin 27 B2Holding ASA Q4 2022 results presentation
Slide 28: 20 largest shareholders
20 largest shareholders G S SS G S) S S G V S S V S V S S K S KS S G S SK V SK SK K K S S S V S G V GG K V G G S V SK KS V G G V G K V S K S S G S V G G 28 B2Holding ASA Q4 2022 results presentation Updated per 13 February 2023 1) Total shareholdings of Rasmussengruppen AS includes shareholdings of
Slide 29: Definitions
Definitions – Actualisation: Actualisation is the difference between actual and forecasted collections for purchased loan – Cash margin: Cash margin consists of cash EBITDA expressed as a percentage of cash revenue. portfolios for the reporting period. – Cash revenue: Cash revenue consists of Total
Slide 30: Definitions (continued)
( ’ ) – Gross collections: Gross collections are the actual cash collected and assets recovered from purchased portfolios. – Non-recurring items: Significant profit and loss items that are not included in the Group’s normal recurring operations, which are difficult to predict and are considered to h
Slide 31: b2holding.no
b2holding.no B2Holding ASA Stortingsgaten 22 P.O.Box 1726 Vika N-0121 Oslo IR contact www.b2holding.no Rasmus Hansson +47 22 83 39 50 Head of Commercial Strategy post@b2holding.no and Investor Relations +47 952 55 842 rh@b2holding.no