Delfingroup As · OMXRSE:DGR1R
Delfingroup As — ExpressCredit — Debt Investor Presentation (April 2019)
25 slides from Delfingroup As's debt investor presentation, April 2019
Slide 1: Company Presentation for Year 2018
COMPANY PRESENTATION FOR YEAR 2018 April 2019
Slide 2: Disclaimer
DISCLAIMER This presentation is of selective nature and is made to provide an overview of the Company’s (SIA “ExpressCredit” and its subsidiaries) business, based on 2018A results. Unless stated otherwise, this presentation shows information from consolidated perspective. Facts and information used
Slide 3: Who We Are
WHO WE ARE WE SERVE PEOPLE WE VALUE Our mission is to provide simple and valuable Simplicity financial services for people. Our services are always simple Our vision is to always and easy to understand. strive for the highest Accessibility recognition. WE PROVIDE We are accessible to everyone Consum
Slide 4: Simple and accessible financial services provided throughout Latvia
ESSENTIAL SERVICES BROAD PRESENCE Consumer loans Banknote stands for: • specialized and standardized branch concept; Simple and accessible Pawn loans financial services are Pawnshop • the largest branch network across financial services in Latvia with 86 representations; provided throughout Internat
Slide 5: VIZIA provides online financial services only
PROMPT SERVICES NEW APPROACH A modern financial services provider Consumer loans specializing in simple and fast consumer loans for both small and large life situations. VIZIA provides online Unique offer – “Make a full repayment of the financial loan until the first scheduled payment day and pay as
Slide 6: Journey to Excellence
JOURNEY TO EXCELLENCE Values and ambitions have driven us to a decade of success. 2009 2010 2011 2012 2013 2015 2016 2017 2018 First pawn shop 50 branches opened Payday Consumer Secured bonds Started money Joined ISO certification Launch of a opened in less than a year lending lending issued and lis
Slide 7: A Key to Success
A KEY TO SUCCESS Wise assessment of market situation Smart positioning Proactivity
Slide 8: Trustworthy and State Regulated Business
TRUSTWORTHY AND STATE REGULATED BUSINESS REGULATION INTEREST RATE CAPS LICENSING Non-bank lenders is a state regulated business According to Consumer Rights Protection Law Licensing is mandatory since 2011 and it is in Latvia. valid in 2018: supervised by Consumer Rights Protection Centre. Regulatio
Slide 9: Regulatory Landscape for 2019
REGULATORY LANDSCAPE FOR 2019 Requirements and recent changes Applies to Effective from Impact on ExpressCredit No significant impact on costs. For loans larger than EUR 100, lenders have to Before the regulation, ExpressCredit was already requesting information for loans request information about t
Slide 10: Building the Industry Standards
BUILDING THE INDUSTRY STANDARDS ACTIVE PARTICIPATION ASSOCIATIONS • ExpressCredit is represented on the council of • ExpressCredit is a founding member of Alternative Alternative Financial Services Association of Latvia. Financial Services Association of Latvia operating since 2013. • ExpressCredit
Slide 11: Need-Driven Business
NEED-DRIVEN BUSINESS Latvia's strategic goal for 2017-2019 is to Alternative financial activate lending. services providers have Alternative financial services providers significant development ensure the accessibility of funding for specific people groups and fill-in the gap in opportunities in Lat
Slide 12: Market with Potential
MARKET WITH POTENTIAL ExpressCredit is swiftly Consumer loans growing market share in EUR 255m Leasing, car title consumer loans and EUR 356m pawn loans segments. Mortgage EUR 38m Pawn loans EUR 7m Loan portfolio of Latvian non-bank lenders, 2018H1 Source: Consumer Rights Protection Centre
Slide 13: Market Overview: Consumer Loans
MARKET OVERVIEW: CONSUMER LOANS Amount of consumer loans outstanding in EUR million as at 2017H1 and 2018H1, Industry* and ExpressCredit comparison. Growth ExpressCredit* grows 14,3% 255 faster than the industry, 223 Growth 18,0% 15 having 5,8%** market 12 share. Industry ExpressCredit Amount of con
Slide 14: Market Overview: Pawn Loans
MARKET OVERVIEW: PAWN LOANS Pawn loan portfolio in EUR million in 2017H1 and 2018H1, Industry* and ExpressCredit comparison. In 2018H1 40% of all 6,6 6,5 pawn loans issued in 1,8 1,9 Latvia were issued by ExpressCredit. Industry ExpressCredit The market share is Amount of pawn loans issued in EUR mi
Slide 15: Client Service at the Forefront
CLIENT SERVICE AT THE FOREFRONT INVEST IN PEOPLE TO ENHANCE EXCELLENCE QUALITY CONTROL ADVANCES SERVICE • Employee competence development • There are continuous skill based follow-ups In 2018, online brand program over decade has been for branch employees. Vizia received Google continuously improved
Slide 16: Profitability Based on Thorough Processes
PROFITABILITY BASED ON THOROUGH PROCESSES NEW TECHNOLOGIES AND PROCESSES SPOT-ON MARKETING STRATEGY • Online services increases customer base • Customers are approached with which values high-quality financial resonating messages through targeted services. segmentation and diverse pricing policy. 20
Slide 17: Consumer Loans
CONSUMER LOANS CONSISTENT TENDENCY OF CONSUMER LOANS PORTFOLIO, EURm 24,1 19.8 19.9 16,5 11.9 12.5 11.1 10.2 8.7 NET LOAN PORTFOLIO 4.4 5.3 5.5 LOANS ISSUED Consumer loans 2013 2014 2015 2016 2017 2018 represent 60% from CONSUMER LOANS IN SPOTLIGHT ExpressCredit issued • EUR 50 – 3000 loans. Loan si
Slide 18: Pawn Loans
PAWN LOANS STABLE GROWTH OF PAWN LOANS PORTFOLIO, EURm 16,2 14.9 15.0 13.8 13.9 12.2 1.7 1.7 1.8 2,0 NET LOAN PORTFOLIO 1.2 1.5 LOANS ISSUED Pawn loans represent 2013 2014 2015 2016 2017 2018 40% from ExpressCredit PAWN LOANS IN SPOTLIGHT issued loans. Loan size Up to 100% of the pawn value (typical
Slide 19: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE EBITDA GROWTH 44% 37% 28% 26% 25% 23% EBITDA margin* 2018 has been the best 2.2 3.1 3.1 2.8 5.6 7,2 EBITDA, EURm year in terms of 2013 2014 2015 2016 2017 2018 * Calculated as EBITDA / (Interest income + Gross profit from sale of profitability and growth. NET PROFIT forec
Slide 20: Financial Ratios
FINANCIAL RATIOS LEVERAGE RATIO 4.0 3.8 3.2 3.0 3.0 4.0 2,7 2.3 2.3 2.5 2.2 2,2 Net Debt/EBITDA ratio Sustainable financial Net Debt/Equity ratio performance. 2013 2014 2015 2016 2017 2018 INTEREST COVERAGE RATIO 3.1 3,1 2.3 2.5 1.9 1.4 Interest coverage ratio 2013 2014 2015 2016 2017 2018
Slide 21: Key Financials: Income Statement
KEY FINANCIALS: INCOME STATEMENT Income statement, EUR’000 2016A 2017A 2018A Interest and similar income 10 628 13 863 14 664 Revenue from sale of goods 4 796 4 164 4 186 Cost of goods sold (3 449) (2 750) (2 659) Solid EBITDA. Gross profit 11 975 15 277 16 191 Selling expense (5 729) (5 497) (5 681
Slide 22: Key Financials: Balance Sheet
KEY FINANCIALS: BALANCE SHEET Balance sheet, EUR’000 2016A 2017A 2018A Fixed and intangible assets 582 601 603 Loans to related parties 1 386 1 302 1 277 Net loan portfolio 11 555 15 843 20 151 Inventory and scrap 701 683 848 Continuous y-o-y Other assets 489 668 298 increase in the loan Cash 1 279
Slide 23: Key Financials: Cash Flow
KEY FINANCIALS: CASH FLOW Cash flow statement, EUR’000 2016A 2017A 2018A EBITDA 2 795 5 645 7 173 Taxes (243) (700) (79) Interest payments (1 396) (1 823) (2 277) Cessation result 1 372 1 683 539 Change in Consumer loans issued (7 074) (6 391) (4 734) Growth financed from Other adjustments 1 155 643
Slide 24: Investor Relations
INVESTOR RELATIONS INFORMATION TO INVESTORS SOURCES OF FINANCE • Quarterly reports with management • Bonds are issued on Nasdaq Riga stock presentation and quarterly condensed exchange (since 2013 in total 3 emissions financial statements are provided on regular issued with total amount of EUR 13.5m
Slide 25: SIA ExpressCredit
SIA ExpressCredit Raunas iela 44 k-1 Riga, Latvia LV-1039 kristaps.bergmanis@expresscredit.lv +371 66 15 50 06 www.expresscredit.lv
ExpressCredit — Debt Investor Presentation (April 2019) on 6ix