B2Holding provides an update on the Group's operations and financial position
for the first quarter 2021.
 
First quarter financial highlights (preliminary figures) with Q1'20 comparable
figures in brackets:
 
- Gross collection of NOK 1,494 million* (NOK 1,433 million) 

- EBIT of NOK 330 million** (NOK 255 million)

- Net profit of NOK 130 million (NOK 24 million)

- Cash EBITDA of NOK 1,014 million*** (NOK 881 million)

- Portfolio purchases of NOK 192 million (NOK 491 million) 

- Leverage ratio of 2.62x*** (3.38x) 

- Equity Ratio of 29.3% (25.1%) 


*Gross collection Includes the Group's share of gross collection for portfolios
purchased and held in SPVs and joint ventures amounting to NOK 69 million (NOK
118 million). 
** Operating profit includes a net credit loss of NOK 1 million (NOK -62
million). 
*** Cash EBITDA and Leverage ratio for Q1-20 are updated in accordance with the
new definition of Cash EBITDA.

In the first quarter of 2021, the B2Holding Group continued to deliver stable
results and strong cash flow. The positive development the Group observed
throughout 2020, despite the impact of Covid-19, continued into 2021. Even with
the prolonged challenges caused by the pandemic in several European countries,
the Group has maintained a high activity level with limited impact on operations
in the first quarter. The level of NPL portfolios sold is still quite low
compared to previous years, and as a consequence, the investment level in the
first quarter has been modest. The Group does however observe an increase in the
market activity level and expects this trend to continue going forward, even if
it may still take some quarters before NPL transaction levels resume to the same
levels as before the pandemic. 

Business operations 
Collections on unsecured portfolios were above latest forecast in the first
quarter. Collections in Northern Europe and Poland have shown resilience and
remained strong throughout the pandemic, and the Group has also seen a positive
development in countries in Central and South Eastern Europe. The cost level has
been lower than expected and exceeded the cost saving targets of the Group.
However, it is expected that legal costs related to collections may increase in
the second half of 2021 due to increased activity and investment levels.

Recoveries from secured portfolios have been strong in the first quarter. Some
larger claims that were delayed from the fourth quarter, have been recovered in
line with or above expectations. The recoveries within secured portfolios have
contributed positively to the strong cash flow in the quarter. The Group has
also observed a positive development within the realisation of Real Estate Owned
(REOs), where the redefined strategy is continuing to yield results. The REOs
sold in the quarter have been realised well above book value. With the resulting
higher amortisation on secured portfolios following the strong recoveries, the
effect is less on the EBITDA but has a positive effect on the Cash EBITDA which
was solid in the quarter. 

Financial position
At the end of March, B2Holding had a liquidity reserve of EUR 360 million. The
liquidity reserve includes among others Treasury Bonds with a fair value of EUR
93 million, EUR 175 million in unutilised Revolving Credit Facility (RCF) and
EUR 75 million in unutilised bridge facility.

The Group's funding cost has decreased in the first quarter, mainly as a result
of the repayment of the first bond. B2Holding has further increased its headroom
to financial covenants during the first quarter.

"I am humbled by and proud of the extraordinary efforts our employees have shown
throughout 2020 and into 2021. Despite a challenging situation, the Group was
able to deliver good and stable results during 2020, and the first quarter of
2021 was no exception. We have seen continued positive development in both
unsecured collections and secured recoveries, which confirms that our strategic
initiatives show positive results. I am especially pleased with the strong cash
flow generated during the first quarter. We also see increased interest from
potential co-investment partners in several of our markets. B2Holding has
strengthened its balance sheet even further in the first quarter, and we are
well positioned to actively take part in an NPL market which we expect will
present attractive opportunities going forward", says Erik J. Johnsen, CEO of
B2Holding ASA. 


Definitions of alternative performance measures can be found in B2Holding's
Annual report 2020 (b2holding-annualreport.no) and are also available on the
Company's website (www.b2holding.no)

The first quarter report will be published on 20 May, and a quarterly
presentation will be webcasted at 08:00 CEST the same day. Invitation to the
presentation including a link to the webcast will be published in due time.  


For further information, please contact:

André Adolfsen 
CFO, B2Holding ASA 
Mobile: +47 930 19 150 
E-mail: aad@b2holding.no 

or

Rasmus Hansson
Head of M&A and IR, B2Holding ASA
Mobile: +47 952 55 842
E-mail: rh@b2holding.no

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