B2 Impact : B2Holding Presentation Q1 2016

Q1 2016 presentation	--

Oslo, 9 May 2016

B2 Holding current status

Highlights for the first quarter

B2Holding has established itself as one of the leading players in the markets where the Group operates Important events

• The bond was listed on 3 March
• High portfolio purchases in Q1 with a total of NOK 448m invested Organisational developments
• Acquisition of Debt Collection Agency (DCA), one of the two leading players in Bulgaria and with operations in Romania
• Established a new office in Prague
• Hired key personnel for analysis of secured assets, and established work-out teams
• Implemented organisational efficiency measures

Q1 typically a seasonally soft quarter - continuing growth, but results affected by regulatory changes and start-up of collections on secured portfolios

• In Poland and Romania, changes in the legal system have caused some delay in payments. We expect this to have a temporarily effect on the revenues
• Some revenue actualisation in Balkans related to secured portfolios, as collections are somewhat delayed relative to estimated collection curves
• Continued positive development in Finland and Sweden

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B2H has acquired Debt Collection Agency AD ("DCA")

Headquarter	Sofia, Bulgaria
Type	Retail unsecured
Presence	Bulgaria + Romania
Employees	159 (134 + 25)
ERC	EUR 40m
Face value	EUR 180m

Population	7.3m	20m
GDP	EUR 42bn	EUR 151bn
GDP growth	1.7%	2.9%
Bank assets	EUR 44bn	EUR 90bn
Bank loans	EUR 28bn	EUR 48bn
NPL ratio	17%	14%

Highlights

Debt Collection Agency AD is a company specialised in acquiring and collecting non-performing loans in Bulgaria and Romania

Licensed by National Bank of Bulgaria, focusing mainly on consumer unsecured debt

• Approx. 75% of acquired portfolios are consumer fast loans
• Framework agreements with three of the largest fast loan providers in Bulgaria
• Face Value of portfolios approx. EUR 180 million, ERC of approx. EUR 40 million

Number 2 player in Bulgaria after EOS

Established fully owned subsidiary in Romania in 2013 (accounts for approx. 32% of collections) The company had collection revenues of EUR 5.9 million and a net profit of EUR 1.9 million

Transaction structured through a mix of cash, earn-out and bonus

- Structure similar to previous, successful, acquisitions (OK Perinta, Ultimo and Creditreform)

Through the acquisition of DCA, B2Holding will even further strengthen its position as one of the leading players in the Balkans. We see DCA as an excellent platform for further growth in the region.

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Two new platforms: Bulgaria and Romania added through the acquisition of DCA - B2H is progressing according to the strategy

Pre acquisition of DCA	Post acquisition of DCA

Platforms

10

Platforms

12

Four separate

platforms under

B2Kapital

Two separate

platforms under

OK Perinta

Countries with portfolios

14

Employees

1,331

ERC (NOKm)

6,822

Countries with portfolios

15

Employees

1,490

ERC (NOKm)*

7,195

*EUR 40m, EUR / NOK 9.33

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Financial highlights as of Q1'16

Increasing collections and Cash EBITDA

Cash collection (NOK)

49%

413

279

Q1'15Q1'16

Cash EBITDA (NOK)2

53%

272

179

Increasing profits and acquisition activity

Adjusted net profit (NOK)1

7

(9)

Q1'15Q1'16

Portfolio acquisitions

599%

448

Solid balance sheet and return on capital

Equity ratio	Adjusted ROE1
Q1'16:		Q1 '16 LTM:
	37.5%		19.0%

2015: 35.5%

2015: 18.2%

Available liquidity (NOK)3

Q1'16:

NOK 1.3 billion

64

Q1'15

Q1'16

Q1'15

Q1'16

1. Adjusted for extraordinary items. ROE based on average equity LTM
2. Cash EBITDA defined as operating EBITDA plus portfolio amortisation
3. Excess cash (cash above minimum cash position of NOK 300m) plus undrawn amount on the revolving credit facility

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