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 |
- Adjusted for extraordinary items. ROE based on average equity LTM
- Cash EBITDA defined as operating EBITDA plus portfolio amortisation
- Excess cash (cash above minimum cash position of NOK 300m) plus undrawn amount on the revolving credit facility
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Disclaimer
B2 Impact ASA published this content on 04 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 October 2023 13:04:21 UTC.