SLIDE 1
Investors presentation 9M 2019 Results
November 2019
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Key Highlights of 9M 2019 results
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Significant growth of our LTM Sept. 30 Cash Revenues (+7%(1)) and LTM Sept. 30 Cash EBITDA (+12%(1)) due to strong collections and solid performance of our servicing revenues
LTM Gross collections increased by 9% as of September 30, 2019 versus September 30, 2018 as the impacts of 2018 low investment are mainly offset by a solid performance of our Backbook collections and a very dynamic Front Book in 2019. Solid results in Servicing (LTM Sept. 30 Servicing revenues +6% / +€6.5m increase). The group’s revenues profile remains well balanced, with 62%(2) of the group’s revenues stemming from recurring, capital light servicing activities Our costs base excluding legal costs and other operational costs basis increase by 1% only on a LTM basis as of September 30 (+3% on total costs) LTM Q3 2019 Cash EBITDA margin slightly increase to 46% (vs. 44% on LTM Q3 2018) driven by (i) synergies acquisitions continuing to flow in our P&L and (ii) strong growth in Debt Purchasing
Our commercial dynamics are gathering pace in France and Italy
Strong debt purchasing volumes since the beginning of 2019 (€68 million during 9M 2019 only; +€35 million versus 9M 2018) with new transactions already signed early in Q4 2019 On servicing activities, French Market still robust - our pipeline remaining very high - and a very dynamic Italian market generating a greater level of
- pportunities and strongly contributing to the growth of revenues (LTM servicing revenues increased by 15% as of September 30).
We reinforce our position and visibility in Italy with the finalization of Sistemia S.p.A. acquisition
Perspectives on Italian market remain good and our new position with Sistemia allows us to get referenced on higher level of potential opportunities with best-in–class servicing capabilities across natures of debt Financing was structured with an additional bond note of €55 million for an acquisition price of €72 million
Despite substantial investments made since the beginning of the year, we continue to operate with moderate leverage levels and significant liquidity
Leverage ratio at 3.1x(3) within previous guidance of 2.5 – 3.5x Significant liquidity, with €72m of cash and €50m of undrawn RCF, readily available to seize attractive investment opportunities
(1) Pro-forma figures including Sistemia historical accounts – LTM September 30 (2) iQera ratio proforma including Sistemia results – 9M ended September 30, 2019 (3) Net debt / Cash EBITDA ratio for iQera including Sistemia combination and synergies realization as of September 30, 2019