Slide 1: Company presentation
Company presentation Nordea - 17 March 2022 Photo: Adrian / Unsplash
Slide 2: This is B2Holding
This is B2Holding NOKm FY 2021 FY 2020 Change % Net revenues 3,036 3,095 -2% Adjusted EBIT 1,333 1,246 7% Total ERC NOK Adjusted EBIT Margin 44% 40% 4 pp 19.9bn EBIT 1,308 1,224 7% ERC 19,918 23,100 -14% Gross Collections 5,435 5,659 -4% 22 platforms in Europe #FTEs 1,979 2,191 -10% with varied matu
Slide 3: Group Main Achievements 2021
Group Main Achievements 2021 Organization & Operational Effectiveness & Capital funding Investments ESG improvements efficiency – Maintained Covid-19 – Unsecured collections: – Sustained lower cost base – Stable cash earnings, – Solid investment capacity measures: remote or Continued positive trend
Slide 4: Strong indications of a more active NPL market in 2022
Strong indications of a more active NPL market in 2022 – NPL market recovery continued in Q4 with significant increase in volume of deals marketed and transacted versus same period in 2020. – According to EBA1), European banks expect renewed growth in consumer credit over the next 12 months, but a d
Slide 5: ESG focus showing results
ESG focus showing results Substantially improved the ESG Risk rating from Sustainalytics, ESG Risk rating ranking us at the top of our industry and within the top 1 % of rated companies globally – B2Holding is considered to be at negligible ESG risk: 9.3 Negligible Risk • Low exposure of material ES
Slide 6: Additional investment capacity for secured and unsecured markets
Additional investment capacity for secured and unsecured markets – Senior financing of approx. EUR 200m agreed with PIMCO BV1 NOK 13.1bn – Reinvestment of cash flows BV NOK 8.3bn BV NOK 4.8bn through revolving facility up to EUR 130m next two years Core unsecured & Core secured existing JVs ~EUR 200
Slide 7: Establishing a cross-border master servicer with local expertise
Establishing a cross-border master servicer with local expertise – Segregate Servicing from Current New structure Investment activity in countries with secured assets Master servicer – Master and special servicer model received approval by regulator in EU. – Facilitating co-investments BV NOK 8.3bn
Slide 8: Financial performance
Financial performance B HOLDING”
Slide 9: Fourth quarter 2021 summary
Fourth quarter 2021 summary – Collections performance above forecast in Q4 • Unsecured collections at 102.0% • Secured recoveries at 122.2% – REOs sold at a 43% premium in Q4 and 38% during the full year – Sustained cost control and improved efficiency driving Adj. EBIT growth • NRIs impacting EBIT
Slide 10: Collection Performance
Collection Performance Unsecured collection performance REOs sold Secured recoveries – Unsecured collections continued to perform ahead of forecast – Secured collections above latest forecast – REOs sold with a premium to book value 10 B2Holding ASA Company presentation 17 March 2022 All numbers in
Slide 11: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q4 2021 Additional investment capacity Cash earnings NOKm NOKm Deleveraging Lev.ratio Lev.ratio (adj) 11 B2Holding ASA Company presentation 17 March 2022
Slide 12: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity 1) 2) – Sustained lower cost base despite high collection activity demonstrating increased scalability across the group – OPEX in the quarter down 13% compared to Q4 2019 adjusted for FX and NRIs – We expect to benefit from a more
Slide 13: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q4 NOKm Geographical distribution Asset class distribution NOK NOK 552m 552m Total ERC as of Q4 Geographical distribution Asset class distribution NOK NOK 19.9bn 19.9bn 13 B2Holding ASA
Slide 14: Q4 revisions reflects full prudent re-underwriting of secured assets
Q4 revisions reflects full prudent re-underwriting of secured assets Revision & Revaluations Purchased loan portfolios -166 – Total re-underwriting of secured curves • Cash based curves, repossessions may come earlier • Change in NPV related to timing effect • Prudent approach to values and timing t
Slide 15: Secured revisions in Q4 and 2022 collection guidance
Secured revisions in Q4 and 2022 collection guidance 15 B2Holding ASA Company presentation 17 March 2022 All numbers in NOK million
Slide 16: Summary
Summary B HOLDING”
Slide 17: Key takeaways
Key takeaways 2021 closed on a Dividend of NOK Signed financing Significant Prepared for positive trend 0.42 for 2021 agreement with increase in higher market PIMCO to drive investments in Q4 activity scalability on secured platforms 17 B2Holding ASA Company presentation 17 March 2022
Slide 18: Q&A
Q&A B HOLDING”
Slide 19: Definitions
Definitions – Actualisation: The difference between actual and forecasted collections for purchased loan portfolios for the – Cost other revenues: Cost other revenues is all external and internal operating costs related to the Group’s other reporting period. business areas. – Adjusted EBIT (Adj. EBI
Slide 20: Definitions (cont'd)
Definitions (cont’d) – Interest Coverage: The ratio of Cash EBITDA divided by net interest expenses. – Net revenues: Net revenues are the Total revenues reported less the Cost of collateral assets sold, including impairment. – Interest income from purchased portfolios: Interest income from purchased
Slide 21: b2holding.no
b2holding.no IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations www.b2holding.no +47 952 55 842 +47 22 83 39 50 rh@b2holding.no post@b2holding.no