Presentation Tuesday May 15th Helping people keep their commitments

Transcription

1 Presentation Tuesday May 15th 2018 Q Helping people keep their commitments 1

2 Today s presenters Klaus-Anders Nysteen CEO Christer Johansson CFO 2

3 AGENDA 1 Strategic agenda and key highlights Q Financial update 3 Summary and key take-aways 3

4 1 Strategic agenda and key highlights 4

5 Hoist Finance plays an important role in the financial ecosystem Credit is at the center of a well-functioning economy Hoist Finance is the trusted partner to banks and customers that closes the loop when commitments are not fulfilled Higher rate of economic growth Payments Hoist Finance Acquisition Increased income Customers/ borrowers More job opportunities Customers/ borrowers Nonperforming loans Bank Increased consumption Larger household income 5

6 VISION Helping people keep their commitments POSITION Hoist Finance is a trusted partner to financial institutions MISSION Our mission Your trust VALUES TRUST Transparency, Results, Uniqueness, Skills and Teamwork 6

7 Three trends currently shaping our industry Growing market Consolidation Market maturation European NPL deal value 1 EUR billion, CAGR growth % E Consumer unsecured Consumer secured SME unsecured +11% p.a. SME secured Consolidation curve Market share of top 5 players (%) 100% 50% 0% Europe Germany Spain UK UK Spain Poland Germany Italy Belgium France The Netherlands Greece Introduction Growth Maturity 1 Source Company market study 7

8 The development of Hoist Finance future state Looking ahead: Leading European player Early years Hoist Finance established 1996 Hoist Kredit obtaining credit market license Geographic expansion in Germany, France, Belgium and the Netherlands Growth and expansion Continued expansion, with entry into the UK, Poland, Austria and Italy Diversified funding through the introduction of HoistSpar Successful IPO and subsequent growth Hoist Finance listed in 2015 Expansion into new asset classes with acquisition of small enterprise debt in Italy Strategic partnership with the Bank of Greece Further expansion with entry into the Spanish market Leading position and scale in prioritized geographies and asset classes Industry leader in operational efficiency and digitalization Capitalize on industry leading funding costs 8

9 Cornerstones of Hoist Finance strategy going forward Clear focus on prioritized markets Expansion into new asset classes Effective and efficient operating model Banking licence is a competitive advantage 1 One Hoist Finance Market leadership Financial Institutions Unique funding Knowledge driven Digital leader 9

10 Q Highlights Growth Portfolio acquisitions +48% YoY 185 LTM portfolio growth +27% Continued expansion in new asset classes Financial performance Total operating income +13% YoY Profit before tax +0% Return on Equity at 18% Collection performance of 108% Outlook Strong underlying market trend Digitalisation and efficiency on top of the agenda Continued market consolidation 18% Return on equity Q Profit before tax Q1 2018, MSEK +48% Portfolio acquisitions, YoY 10

11 2 Financial update 11

12 New segment reporting as of Q United Kingdom Italy Germany Poland Other Segments Central Functions 12

13 Effects on presentation of Income statements Interest income acquired loan portfolios is based on the effective interest rate (EIR) which discounts the expected gross cash flow, at the time of purchase, to the acquisition price. (Carrying value of acquired loan portfolio x EIR = Interest income acquired loan portfolios) The line is not affected by actual collections nor revaluations Over and under performance in actual collections compared to active cash forecast as well as revaluations will be reported under Impairment gains and losses. 13

14 Financial summary SEK million Q Q Change, % Net interest income n/a Net operating income % Total operating expenses % Net operating profit % Profit from participations in joint ventures % Profit before tax % Ratios Q Q Change pp Return on Equity, % 18% 21% -3 pp Cost/Income ratio, % 74% 71% 3 pp EBIT-margin, % 34% 38% -4 pp Net operating income Solid portfolio growth Strong collection performance Total expenses Expansion into other asset classes Digital initiatives Accelerated legal collections in Poland Decrease in profits from JV Performance fee of 13 MSEK same period last year Positive FX effects Volumes, SEKbn Q Q Change, % Carrying value on acquired loan portfolios 16,1 15,0 7% ERC (120-month) 24,7 24,0 3% 14

15 Operational efficiency Cost/Income ratio, % 100% 90% 80% 81% 83% 70% 71% 74% 60% 70% 50% 40% 30% 20% 10% 0% 2017 Q Q Q Q Q1 Increased legal collections in Poland Increased capabilities in other asset classes Accelerated digital transformation Continued strong focus on operational efficiency SEK million Q Q Change, % Personnel expenses Collection costs Administrative expenses Depreciation and amortisation Total operating expenses

16 Financial summary segments 1 Acquired loan portfolios, SEKbn 2 Net operating income, SEKm 3 Profit before tax, SEKm 1% 16% 31% 16% 8% 22% 13% 25% 13% SEK 16,1bn SEK 684m SEK 185m 16% 14% 13% 26% 11% 26% 14% 35% Country Q Q Change (%) UK 5,044 3, Italy 4,249 3, Germany 2,036 1,939 5 Poland 2,022 1, Other segments 2,524 2, Central functions Country Q Q Change (%) UK Italy Germany Poland Other segments Central functions Country Q Q Change (%) UK Italy >100 Germany Poland Other segments Central functions >100 16

17 Funding and funding costs Funding excluding equity and AT1-capital, SEKbn SEKbn % ,63% 1,23% 2,0% 1,8% 1,6% 1,4% 1,2% 1,0% 0,8% 0,6% 0,4% 0,2% Key takeaways Interest expenses/book value below 2% Positive development of EUR deposit offer in Germany 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Deposits Senior unsecured debt Subordinated liabilities Average cost of funding, % 0,0% Interest expense/ Book value 2,2% 2,3% 2,2% 2,1% 2,2% 1,9% 1,7% 1,5% 17

18 Capital and liquidity ratios Capitalisation, % Capital ratios, % Liquidity reserve 31 Dec Mar ,7% 17,2% 31 Dec Mar 2018 CET1-Target 7,7% 3,7% 11,4% 11,7% 11,4% 13,6% 13,1% Regulatory capital requirement Margin above capital requirement CET1-ratio Common Equity Tier 1 capital ratio Tier 1 capital ratio Total capital ratio 18

19 3 Summary and key take aways 19

20 Summary and key take aways 1 Market growth, consolidation and maturation +27% Portfolio growth LTM 2 3 Growth and operational efficiency prioritised going forward Broader product offering in prioritised markets 16,1 Carrying value Q1 2018, SEKbn 4 Digital leadership 11,35% Q CET1-ratio 20

21 Appendix 21

22 Adjusted EBITDA Adjusted EBITDA reconciliation SEK million Q Q Full year 2017 Net profit for the period income taxes /- net result from financial transactions interest expense interest income (excl. interest from run-off performing portfolio) portfolio revaluations /- impairment gains and losses depreciation and amortisation EBITDA Adjusted EBITDA development SEK million % + amortisation on run-off portfolio amortisation on acquired loan portfolios 528 2,244 + gross cash collections on acquired loan 1,294 portfolios - Interest income on acquired loan portfolios -645 Adjusted EBITDA , Q Q Full year

23 The share Share price development since IPO - March 25, 2015, to March 31, 2018 Largest shareholders ( ) HOFI OMXSPI +32,2% +1,8% Carve Capital AB 9.7 Swedbank Robur Funds 8.8 Zeres Capital 8.6 Handelsbanken Funds 8.4 Didner & Gerge Funds 4.6 Jörgen Olsson private and company 4.1 Danske Invest Funds 3.9 AFA Insurance 3.2 Costas Thoupos 3.0 Carnegie Funds 2.8 Geographical Split Norway United 2% Kingdom 3% United States 7% France 2% Other 4% % Sweden 82% March 25, Mar 31,

24 Investor Relations Most recent stock recommendations Date Institution Recommendation TP Nordea Buy SEK Macquarie Buy SEK Morgan Stanley Overweight SEK 98 Recommendations Buy Hold Sell Analyst coverage Institution Analyst Carnegie Viktor Lindeberg Citi Investment Research Owen Jones Macquarie Arun Melmane Morgan Stanley Anil Sharma Nordea Markets Ermin Keric Pareto Securities Vegard Toverud Selected Investor Relations events in 2018 Roadshow, Stockholm, 15 May Roadshow, Olso-London, May Handelsbanken Nordic Mid Small Cap Seminar, Stockholm, 24 May Roadshow, Helsinki, 31 May Roadshow, New York, 4-5 June Nordea Small & Mid Cap Seminar, Stockholm 16 August For more information: Web: ir.hoistfinance.com/en Head of Investor Relations: Michel Fischier michel.fischier@hoistfinance.com +46 (0)

25 This is Hoist Finance Focus on acquisition and management of bank-originated non-performing loans Pan-European debt restructuring partner licensed and supervised by the SFSA Helping people keep their commitments The Hoist Way 1. Contact 2. Open Dialogue 3. Agreement Solid business model with over 20 years experience Scalable business model delivering strong financial returns SEK million Change Total revenue % EBT* % Return on Equity*, % pp *Excluding items affecting comparability amounting to 118 MSEK. 25

26 Our Mission Your Trust