Investors presentation FY 2019 Results April 2020 1
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Key Highlights of FY 2019 results Dynamic growth of our Cash Revenues (+14% (1) ) with increasing margins (+22% (1) in Attributable Cash EBITDA) “ In Debt Purchasing, LTM Gross collections increased by 28% for the year ended December 31, 2019 versus the year ended December 31, 2018 thanks to a solid Backbook performance and a significant Frontbook contribution. In Debt Servicing, revenues grew by 1% for the year ended December 31, 2019 as compared with the year ended December 31, 2018, as new business performed more than offset run-off nature of some contracts Costs were well-controlled in the year ended December 31, 2019 (4% growth as compared with the year ended December 31, 2018) in spite of continuous investments to develop our French and Italian entities FY Attributable Cash EBITDA margin increased from 44% in the year ended December 31, 2018 to 47% in the year ended December 31, 2019 driven by (i) acquisitions synergies continuing to flow in our P&L and (ii) strong collections in our Debt Purchasing business. “ In addition to positive FY 2019 results, we believe there are further market opportunities in both France and Italy 2019 showed continued signs of growing opportunities for our activities in our two core markets, France and Italy. We made significant debt portfolio purchases in 2019 in France (+€197 million o/w €128 million in Q4 2019) almost five times iQera’s acquisitions in 2018 (€42 million) thanks to robust market dynamics, while maintaining our focus on secured, complex products (SME loans, etc.) as well as our underwriting discipline in a competitive environment. Servicing activities in France were impacted by the run off structure of some of our large contracts, but our pipeline remains strong. In Italy, a greater level of opportunities led to significant servicing revenues growth (+11% in 2019 versus 2018 (1) ). “ Leverage maintained within previous guidance despite significant investments Record portfolio purchases and Sistemia’s acquisition in Italy led us to deploy €220 million (3) of Capital in 2019. Our leverage ratio on Attributable Cash EBITDA was at 3.4x (4) as of December 31, 2019 which is within previous guidance of 2.5 – 3.5x. Also, at the end of 2019, 61% (2) of our revenues stemmed from recurring, capital light servicing activities. Liquidity remained abundant with €43m of available cash and an extra €44m of undrawn RCF as of December 31, 2019. (1) pro forma figures including Sistemia – LTM as of December 31, 2019 vs LTM as of December 31, 2018 (2) Ratio calculation based on iQera LTM pro forma figures including Sistemia as of December 31, 2019 3 (3) €220 million of capital combines c. €153 million of equity injected in portfolio acquisitions and C. €70 million on Sistemia acquisition (4) Net debt / Attributable Cash EBITDA pro forma ratio iQera including Sistemia as of December 31, 2019 and including expected synergies at end of 2020
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