B2 Impact Asa · OSL:B2I
B2 Impact Asa — B2Holding — Arctic Securities Investor Conference, Zagreb 2017
35 slides from B2 Impact Asa's conference presentation, Jan 19, 2017
Slide 1: Arctic Securities Investor Conference
Arctic Securities Investor Conference -- Zagreb, 19 January 2017
Slide 2: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia |2
Slide 3: A. Region overview
A. Region overview Croatia Slovenia Serbia Country overview Country overview Country overview Population = 4,2 milion Population = 2 milion Population = 7,2 milion GDP per capita = 10.400 € GDP per capita = 18.700 € GDP per capita = 4.700 € Credit rating (S&P) = BB Credit rating (S&P) = A Credit rat
Slide 4: B. Operations in general
B. Operations in general 1. Acquisition process 2. Portfolio onboarding 3. Collection overview |4
Slide 5: 1. Acquisition process
1. Acquisition process Vendor Public tender Closed tender Expesion of interest Vendor providing Each Vendor defines the number of data Sales process phases Due diligence Bid submission Selection of prefered investor(s) LSPA negotiations Signing |5
Slide 6: 2. Portfolio onboarding
2. Portfolio onboarding Documentation Data onboarding onboarding Agreeing on import file Taking over the with the Vendor documentation Comparing data after Reconciliation of purchase with data received disclosed during Sales documentation and process balance amount Importing portfolio into the syste
Slide 7: 3. Collection overview
3. Collection overview Retail portfolios Non-retail portfolios Case by case collection Mass collection Key role = experienced Key role = IT system employees Amicable approach Legal approach |7
Slide 8: C. Business drivers
C. Business drivers Growth potential - Relatively new market - Growing number of transactions and Vendors - Legal legislation changes alowing NPL transactions (e.g. in Retail sector) - New product types / Vendors - Insurance - Other crediting institutions - Telecom and utilities Challenges - Market
Slide 9: C. Business drivers: licences and approvals
C. Business drivers Licences/approvals for NPL portfolio purchase from the Bank - Croatia - Approval of Central Bank (in certain cases) - Serbia - Non-Retail portfolios – opinion of Central Bank - Retail portfolios – banking licence - Montenegro - Opinion of Central Bank (in certain in cases) Licenc
Slide 10: C. Business drivers: compliance
C. Business drivers Areas to improve - Cost to collect Compliance - Employees educated to use high ethical standards, soft communication skills and to communicate with clients in accordance with Personal Data Protection Law - Operating in compliance with Anti Money Laundering and Terrorist Financing
Slide 11: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia E. Appendix | 11
Slide 12: Croatia at Glance Overview
CROATIA AT GLANCE OVERVIEW 19TH JANUARY 2017
Slide 13: Recent Economic Developments
Recent Economic Developments 2016 in review Graphs In the Q3 2016, growth strengthened for the eight consecutive quarter to 2.8%, after six years of recession. This was the result of the growth in exports, increased private consumption, and a rebound of investment. Growth was broad-based, with an en
Slide 14: Unemployment
Unemployment Steady Decrease of Unemployment Graphs In Q3 2016 unemployment rate continued to decrease, but with less intensity compared to H1 2016. Number of unemployed persons decreased by 4,2% in Q3 2016 while in H1 2016 average Q/Q decrease amounted to 5,7%. Main driver of the decrease is new em
Slide 15: GDP
GDP 8 Consecutive Quarters of Growth Graphs Q3 2016 GDP real growth rate (gross) amounted to 2,9%, due to noticeable increase of services export which influenced net foreign demand to be positive. At the same time production side calculation of GDP shows that the annual growth in gross value added (
Slide 16: Economy
Economy Record Tourism Saves the Day Graphs Having grown steadily in the H1 2016, Croatia’s economic activity accelerated further in the summer months of the year. The positive trends were primarily supported by strong tourism performance and the acceleration of recovery in personal consumption. Pos
Slide 17: Real Estate Market - Residential
Real Estate Market - Residential Steady Decline in RE Prices for 8 Years Graphs Currently there are approximately 165,000 properties offered for sale in Croatia, including 17,000 properties which entered the market in December. In 2016, the fall in prices of old apartments was stopped and the market
Slide 18: Real Estate Market - Retail
Real Estate Market - Retail Saturation in Zagreb, Opportunities in Secondary Cities Graphs Retail market is dominant in Croatia. Retail stock includes over 80 retail centers and hundreds of retail warehouse units mainly occupied by FMCG retailers, furniture and homeware stores, and DIY stores. Sever
Slide 19: Real Estate Market – Office & Industrial
Real Estate Market – Office & Industrial Industrial Below European Average Graphs The industrial and logistics sector remains the least developed real estate sector in Croatia, and is characterized by lack of modern Class A warehouse supply. Zagreb area has a total industrial and logistics stock of
Slide 20: Currency Risk
Currency Risk National Bank is Defending Kuna/Euro Exchange Rate Graphs Currency risk exposure resulting from foreign currency-denominated debt is a source of vulnerability. Due to a low sovereign credit rating, Croatian companies encounter 2 - 3% higher costs for long-term loans than their euro are
Slide 21: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia E. Appendix | 21
Slide 22: Government
Government 6 Month Experiment is Over Political Risk Since the beginning of 2016 Croatian politics has faced serious turmoil and Standard & Poor’s rating agency as well as Fitch and Moody's, still keep Croatia's unprecedented events which brought into question the established norms of credit rating
Slide 23: Corruption & Money Laundering
Corruption & Money Laundering Progress Graphs Fighting corruption was one of the key criteria Croatia had to meet to join the European Union. Corruption in Croatia is perceived to be pervasive in major public companies, the health sector, universities, public procurement systems, the construction se
Slide 24: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia E. Appendix | 24
Slide 25: Overview of the Banking Sector
Overview of the Banking Sector Bank Lending Again Decreased in 2015 Graphs Reduced credit demand in the private sector (especially that in lower-risk segment) Result accompanied by diminished risk appetite of local commercial banks, gave raise to a Slight recovery in the quality of non-housing loans
Slide 26: Overview of the Banking Sector – Cont’d
Overview of the Banking Sector – Cont’d Swiss Franc Issue Graphs Key vulnerabilities The cost of conversion of loans indexed to the Swiss franc into euros considerably burdened the banking sector and caused a fall in the profitability and capitalization of the sector due to the losses sustained (ROA
Slide 27: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia E. Appendix | 27
Slide 28: NPL Volume
NPL Volume Sale of Claims Halted NPL share Graphs A years-long upward trend in the share of NPLs was halted in 2015, under the key influence of the sale of claims. The share of NPLs had been increasing since 2008 and the onset of the global crisis, totaling 17.1% at the end of 2014. By the end of 20
Slide 29: NPL Market in 2017
NPL Market in 2017 NPL share below 15% in Q2 2016 Graphs First time since 2012. the NPL ratio fell below 15% to 14,99% in June 2016 (further to 14,65% in September 2016). The reduction in NPL share is primarily tied to sale of claims. The 14,99% amounts to approx. 5,2b EUR. If transactions that were
Slide 30: Agenda
Agenda 1. Introduction to B2Kapital SEE A. Region overview B. Operations in general C. Business drivers 2. Croatia at a glance by KF Finance A. Economic Situation in Croatia B. Political Situation in Croatia C. Banking Sector in Croatia D. NPLs in Croatia E. Appendix | 30
Slide 31: Serbia NPL Market
Serbia NPL Market Emerging 3,5b EUR Market Non-performing loans (NPL) are one of the principal problems of Serbian There have been noteworthy positive changes. New Consensual Financial banking sector. Restructuring Law was passed in 2015 allowing for a creditor and a debtor Since 2009, number of dom
Slide 32: Slovenia NPL Market
Slovenia NPL Market Sharp Decline in NPL Share Graphs In order to stabilise the financial market in Slovenia, one of the most important measures adopted by the State was to help banks scale down the volume of NPLs, which was done through implementation of measures provided by the Act Defining the Me
Slide 33: Croatia Key Indicators Forecast
Croatia Key Indicators Forecast What to Expect in 2017 Graphs The new government faces several challenges, including hefty public and external debt, an ageing and shrinking population, and an uncertain external environment. Monetary policy has been surrendered to preserve the stability of the nomina
Slide 34: KF Finance contact details
Croatia Slovenia Serbia KF Finance d.o.o. KF Finance d.o.o. KF Finance d.o.o. Strojarska cesta 22 Verovškova ulica 55A Kosovska 10 10000 Zagreb 1000 Ljubljana 11000 Beograd Croatia Slovenia Serbia Phone: +385 1 8000 570 Phone: +386 059 059 057 Phone: +381 65 6662 121 E-mail: info@kf-finance.hr E-mai
Slide 35: B2Holding ASA contact details
B2Holding ASA | Stortingsgaten 22 | P.O. Box 1642 Vika | N-0119 Oslo www.b2holding.no | Tel: +47 22 83 39 50 | E-mail: post@b2holding.no
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