B2 Impact : Q1 2024 Presentation

Q1

First quarter 2024

Presentation

15 May 2024

Today's presenters

Erik J. Johnsen	André Adolfsen	Rasmus Hansson
Chief Executive Officer	Chief Financial Officer	Head of Investor Relations and M&A

Q&A moderator

2 B2 Impact Q1 2024 results presentation

Q1 2024 highlights

• Strong collection performance
• NOK 1bn invested and committed at end of Q1
• Strong financial position
• Bond and tap issue completed at improved margins
• Low leverage ratio gives significant headroom for growth
• Further improved credit rating
• Sale of portfolios in Hungary with closing in May

2024 priorities

• Selective investment approach and improving returns
• Further reduce cost of debt and extend maturity profile
• Continued focus on concentration of footprint

3 B2 Impact Q1 2024 results presentation

Key figures Q1 2024 (NOKm)

as

o e

t ons

nse red per or an e

ort o o n est ents

as

T

d

et pro

t

e era e rat o

4

B2 Impact Q1 2024 results presentation

Comparable numbers for Q1 2023 below

Investments in IT and digitalization supporting increased cost scalability

Cash collections in constant FX		Total FTE development
		Cash collections		OPEX ratio		6 164	2 517
5 129				5 142	2 191
					4 767		1 979	CAGR
						1 885
4 523
		'19-'23
							1 607
36%			-10.6%
34%			33%	33%
						30%

	2019	2020	2021	2022	2023	2019	2020	2021	2022	2023
5	B2 Impact Q1 2024 results presentation

B2 Impact is uniquely positioned to capitalize on the opportunities

nd at

e ret rns on port o o n est ents

oat n

e ro rates

2017	2018	2019		2020	2021	2022	2023	2024E	2025E
• Period of easy access to	•	A period with	• Increase in cost of funding in line with
capital and high M&A activity		lower volume	increased interest rates
in the CMS industry			through the	• Gradually softening competitive
• Competitive markets with		pandemic
•			environment
pressure on portfolio returns	Lower supply led	• Improved returns on portfolios
				to price pressure
						• Cost of capital expected to decrease going
						forward

• Expected lower cost of funding going forward as a result of improved margin and decrease in long term interest rates
• B2 Impact has room for profitable growth going forward in combination with continued prudent leverage and good headroom to covenants
• Less capital available for acquisition of NPL portfolios due to capital constraints in the industry
• A more favorable competitive environment
• Selective investment approach

6 B2 Impact Q1 2024 results presentation

Investments focused in core unsecured markets to drive scalability

• Countries with continued operations reduced from 23 to 17

• New investments concentrated in 10-12 markets

- Investments 2020 to end Q1 2024 of NOK 8.1bn

• • 95% in Unsecured portfolios of which 75% in core markets
• Core unsecured markets
• • Continued investments for growth

- Utilise economies of scale

- Continued focus on increased efficiency and automation

• Secured markets (Veraltis)

- Capital light revenues through servicing

- Increase assets under management

- Continued focus on cost efficiency

Core unsecured markets

Secured markets (Veraltis)

Head office, Norway Investment office, Luxembourg

7 B2 Impact Q1 2024 results presentation

Financial performance

8 B2 Impact Q1 2024 results presentation

Strong collection performance and lower cost of debt

• Strong collection performance
• • Unsecured at 105% and Secured at 164%
• Reported revenues and EBIT impacted by NOK 38m lower non-cash collections
• Lower underlying Opex - Personnel costs down 4%
• Underlying Cash EBITDA of NOK 920m
• Interest costs down 10% compared with Q4 2023
• Portfolio investments in line with normal seasonality
• • NOK 700m additional committed for the year

Key financials1)

		2 2	2 23
		1	1	3
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et pro t
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ort sat on o	o n port o os
ort o o n est	ents
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9	B2 Impact Q1 2024 results presentation	1)	Key Financials exclude Non-recurring items - NOK 6m impacting EBIT in the quarter
		2)	n des t e Gro p's s are o port o os e d n S Vs and o nt ent res
		3)	Comparable numbers are adjusted for FX and Bulgaria

Collection Performance excl. JVs

Unsecured collection performance

REO sales

o e

t on

er or an e

Secured collections

as

o e

t ons

sa es

epossess ons

• 1. a e Sa es pro eeds
• Positive trend in unsecured collection performance
• • 105% of latest forecast and positive trend so far in Q2 2024
• Secured cash collections at NOK 265m and in line with Q1 2023
• • REOs sold comfortably above book value

10 B2 Impact Q1 2024 results presentation