B2 Impact ASA · OSL:B2I

B2 Impact ASA — B2Holding — Q3 2022 Earnings Presentation

30 slides from B2 Impact ASA's earnings presentation, 2022

  1. Slide 1: Photo: Kyler Trautner / Unsplash

    Photo: Kyler Trautner / Unsplash

  2. Slide 2: Highlights Q3 2022

    Highlights Q3 2022 Operations – Strong unsecured collection performance of 104.4% – Growth in secured cash recoveries driven by REO sales of NOK 169m – REO sales above target of NOK 400m Effectiveness & efficiency – Sustainable cost savings mitigating cost inflation – Continued utilization of our sc

  3. Slide 3: Key figures Q3 2022 (NOKm)

    Key figures Q3 2022 (NOKm) Cash collections REO sales Net revenues 1 244 169 797 1 191 40 792 Cash EBITDA1) Adj. Net profit2) Portfolio investments 973 171 399 946 174 237 3 Comparable numbers for Q3 2021 below. B2Holding ASA Q3 2022 results presentation 1) Prior period numbers are updated in accorda

  4. Slide 4: Scalability across our markets

    Scalability across our markets Secured markets (Veraltis Asset Management) Unsecured markets Cash collections ERC Cash collections ERC 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 Q3'22 Q1'20 Q2'20 Q3'20 Q4'

  5. Slide 5: Proven collection resilience

    Proven collection resilience Short term support from disposable income, savings, and governmental schemes Long Term Macro Trends1 GDP Growth y/y% Inflation (CPI y/y%) Unemployment Rates Notable observations: 15 – The industry has proven resilient in economic downturns 10 – Higher disposable income h

  6. Slide 6: Maintaining capital discipline in changing market dynamics

    Maintaining capital discipline in changing market dynamics 68 % increase in portfolio investments versus same quarter last year and improved returns on portfolios acquired Early signs of heightened capital discipline and prudent pricing Target returns increased to reflect current uncertainty and mar

  7. Slide 7: Financial performance

    Financial performance B HOLDING”

  8. Slide 8: Third quarter 2022 summary

    Third quarter 2022 summary 2022 2021 % 2022 2021 – Cash collections up 9% YoY in constant NOK million Q3 Q3 change YTD YTD FX Cash collections 1 244 1 191 4% 3 704 3 721 • Unsecured collections at 104.4% Net revenues 797 792 1% 2 261 2 310 • Strong secured cash collections of NOK Adj. EBIT 373 385 -

  9. Slide 9: Collection Performance excl. JVs

    Collection Performance excl. JVs Unsecured collection performance REOs sold 949 926 115% +55% 903 853 848 106% 110% 408 103% 104% 102% 102% 105% 100% 262 +108% 95% 169 90% 82 85% 80% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3 '22 YTD '22 Collection Performance % Book Value Sales Proceeds Secured recoveries –

  10. Slide 10: Positive cash earnings and low leverage

    Positive cash earnings and low leverage Cash flow Q3 2022 Additional investment capacity NOKm Increase Decrease Total NOKm Portfolio investments Cash Earnings 758 552 516 503 973 479 399 - 62 237 239 262 220 226 78 - 399 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Stable leverage ratio - 47 465 Lev.ratio 2.

  11. Slide 11: Strong cash collections and stable underlying cost base

    Strong cash collections and stable underlying cost base Cash collections (constant FX) Sustainable savings mitigating cost inflation – Total cash collections up 9% YoY – LTM Opex in line with last year – Total secured cash collection up 82% from last year – Opex in Q3 up 2.2% vs Q3 LY driven by high

  12. Slide 12: Portfolio investments and Estimated Remaining Collections (ERC)

    Portfolio investments and Estimated Remaining Collections (ERC) Growing cash collections and stable ERC Portfolio investments in Q3 NOKm NPL REOs Cash collection Gross collections Geographical distribution Asset class distribution SEE WE 11% Unsecured 4% Forward Flow CE 34% 10% 1 269 1 266 1 278 NOK

  13. Slide 13: New capital structure post refinancing

    New capital structure post refinancing Debt maturity profile, EURm1 Improved flexibility and liquidity Outstanding bonds Utilised RCF Utilised SFA – Extensive refinancing completed in the quarter 2 Treasury bonds Unutilised RCF Unutilised SFA • Extension of RCF, new SFA, and a new bond – Senior Faci

  14. Slide 14: Strong Cash EBITDA trend expected to continue into Q4 2022

    Strong Cash EBITDA trend expected to continue into Q4 2022 Growth in Cash EBITDA despite lower BV and ERC Cash collections exceeding gross collections – Repossession strategy proven to add value above BV… NOKm NPL REOs NIBD Cash EBITDA – …leading to positive impact on Cash metrics vs P&L 973 895 – I

  15. Slide 15: Summary

    Summary B HOLDING”

  16. Slide 16: Key takeaways

    Key takeaways Resilient and Cost control with Increased Issued new bond Capital discipline strong collections lower operating investment in a challenging in changing and recoveries expenses vs activity with market market dynamics previous quarters higher net IRRs 16 B2Holding ASA Q3 2022 results pre

  17. Slide 17: Q&A

    Q&A B HOLDING”

  18. Slide 18: Quarterly financial performance

    Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm NOKm Cash EBITDA Cash margin NOKm Adj. EBIT Adj. EBIT margin 71% 70% 71% 68% 69% 973 946 934 949 792 797 862 748 55% 726 716 49% 47% 50% 41% 42% 45% 40% 385 373 40% 330 35% 297 289 30% 25% 20% 15% 10% 5% 0% Q3'21 Q4'21 Q1'22

  19. Slide 19: Quarterly trends

    Quarterly trends 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 NOK million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Cash collections 1 234 1 222 1 206 1 219 1 301 1 229 1 191 1 136 1 214 1 246 1 244 Net revenues 764 687 813 831 762 756 792 726 716 748 797 Adj. EBIT 268 245 369 363 330 321 385 297 2

  20. Slide 20: ERC development

    ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 23 809 4 507 23 100 22 262 4 202 20 840 Poland 20 440 19 744 19 918 19 867 19 590 18 683 15 264 2 834 NE 1 989 CE 1 401 1 055 WE 827 650 520 409 SEE 2017 2018 2019 2020 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q

  21. Slide 21: Portfolio diversification

    Portfolio diversification Unsecured Year ERC 1 2 3 4 5 6 7 8 9 10 120m ERC Total ERC Poland 789 590 465 373 295 237 190 155 126 100 3 318 3 636 NE 1 505 1 217 1 006 827 682 568 471 387 319 256 7 238 8 032 CE 279 224 172 136 100 67 45 33 24 16 1 096 1 117 WE 204 159 122 97 83 61 47 40 35 33 882 939 S

  22. Slide 22: Northern Europe (NE)

    Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs NOKm 2022 Q3 2021 Q3 Change % – Portfolio purchases of NOK 261m in the quarter Net revenues 244 279 -12% Adj. EBIT 150 185 -19% – Gross collection of NOK 430m Adj. EBIT margin 62% 66% -5pp (%) ERC

  23. Slide 23: Poland

    Poland Poland Highlights & KPIs NOKm 2022 Q3 2021 Q3 Change % – Portfolio purchases of NOK 41m in the quarter Net revenues 188 164 15% Adj. EBIT 97 97 1% – Gross collection of NOK 261m Adj. EBIT margin 52% 56% -4pp (%) ERC 3 827 3 248 18% Portfolio purchases Cash EBITDA & margin 75% 70% 208 205 41 1

  24. Slide 24: Central Europe (CE)

    Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs NOKm 2022 Q3 2021 Q3 Change % – Portfolio purchases of NOK 39m in the quarter Net revenues 243 139 75% Adj. EBIT 184 88 108% – Gross collection of NOK 205m Adj. EBIT margin

  25. Slide 25: Western Europe (WE)

    Spain, Italy and France Western Europe (WE) Highlights & KPIs NOKm 2022 Q3 2021 Q3 Change % – Portfolio purchases of NOK 16m in the quarter Net revenues 68 81 -17% Adj. EBIT 0 9 -97% – Gross collection of NOK 93m Adj. EBIT margin 0% 11% -11pp (%) ERC 2 237 2 314 -3% Portfolio purchases Cash EBITDA &

  26. Slide 26: South Eastern Europe (SEE)

    Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs NOKm 2022 Q3 2021 Q3 Change % – Portfolio purchases of NOK 42m in the quarter Net revenues 54 129 -58% Adj. EBIT -26 47 -156% – Gross collection of NOK 139m Adj. EBIT margin -48% 36% -85pp (%) ERC 2 328 2 714 -14% Port

  27. Slide 27: 20 largest shareholders

    20 largest shareholders # Shareholder No. of shares Percentage 1 PRIORITET GROUP AB 52 913 000 13.18 % 1) 2 RASMUSSENGRUPPEN AS 51 373 266 12.80 % 3 STENSHAGEN INVEST AS 26 500 143 6.60 % 4 VALSET INVEST AS 26 000 000 6.48 % 5 DNB MARKETS AKSJEHANDEL/-ANALYSE 19 767 129 4.92 % 6 B2HOLDING ASA 12 433

  28. Slide 28: Definitions

    Definitions – Actualisation: Actualisation is the difference between actual and forecasted collections for purchased loan – Cash revenue: Cash revenue consists of Total revenues added back amortisation and revaluation of purchased portfolios for the reporting period. loan portfolios and adjusted for

  29. Slide 29: Definitions (cont'd)

    Definitions (cont’d) – 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

  30. Slide 30: b2holding.no

    b2holding.no B2Holding ASA Stortingsgaten 22 P.O.Box 1726 Vika N-0121 Oslo IR contact Rasmus Hansson www.b2holding.no Head of Commercial Strategy +47 22 83 39 50 and Investor Relations post@b2holding.no +47 952 55 842 rh@b2holding.no

B2Holding — Q3 2022 Earnings Presentation on 6ix