Investor Presentation Avida Holding AB - otc.nfmf.nootc.nfmf.no/public/news/16864.pdf · Investor...
Transcript of Investor Presentation Avida Holding AB - otc.nfmf.nootc.nfmf.no/public/news/16864.pdf · Investor...
Diversified, scalable and set for high growth
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Reshaped, automated platform - well set up for growth across the Nordics
Diversified business - well positioned to capture large opportunity in the SME market in the Nordics
Renewed, strong management team that “has done this before” – set to do it even better this time
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Scalable model – targeting SEK 10 Bn loan book by 2020
Shareholder friendly set up with long-term and active key shareholders
100%
1. Diversified model, allows for dynamic allocation of capital
• Diversified across sectors
• Loans and credit lines in all three countries
• Diversified risk categories and pricing
• Direct to end-customers and funding of smaller lenders
• Invoice financing & factoring of both consumer invoices and business invoices
• Business loans and credit lines focused on complete working capital solutions
• Specialized sales financing
• Invoice administration services• Collection Services (Sweden & Norway)
• Deposits from the public in Sweden
• Norwegian deposits to be launched in May 2017 to diversify funding facilities and provide a natural hedge of currency
• Finland planned early 2018
• Deposits approved by the Swedish National Debt Office (Riksgälden) and is thus covered by the state deposit guarantee (up to SEK 950,000)
• Fixed term deposits product is also planned
~80%20%
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44%
36%
z22%
y23% 55%
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1,656
’14
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CONSUMER FINANCEI BUSINESSII DEPOSIT ACCOUNTSIII
GEOGRAPHICAL SPLIT * SHARE OF NET LOANS *
~20%
GEOGRAPHICAL SPLIT * SHARE OF NET LOANS * GEOGRAPHICAL SPLIT * DEPOSITS (SEKm)
2016
11.4
2015
13.1
2014
14.1
2013
10.9
2012
8.2
2011
2.8
2. Reshaped and automated platform– well set up for aggressive growth across the NordicsAutomated, analytical and diversified Net loans to customers (SEKm)Net loans to customers (SEKm)
Pre-tax Profits (SEKm)
• A diversified niche financing company, established in 1983, focusing both on consumer finance and business lending in Norway, Sweden and Finland
• Started a new phase in late 2015 when Avida was acquired by its new owners, subsequent a new board and management was established
• Significant investments has been made to automate processes, improve analytical capabilities and increase the capital base to allow for the strong growth seen in 2016
• SEK 235m in new equity has been raised over the last 16 months – the majority directly from the new owners
• Looking to build a lasting competitive advantage in distribution and credit scoring by combining technology and automation with superior analytics, both for the consumer and SME market
• Fully automated solutions in Sweden, Norway and Finland – significant economies of scale
• Main focus on analytical prowess to ensure strong credit quality and in depth knowledge of each client
• Looking to further expand product offering in the SME/business segment, a segment that today is underserved by the banks
1,610
2015
503
2014
414
2013
303
2012
239
20162011
175
1,420
268
234
270
191112
210203
Geographical exposure (%)
Oct
1,401
Sep
1,244
Aug
1,060
Jul
862
Jun
698
May
637
Apr
587
Mar
554
Feb
539
Jan
509
Business
Consumer - FI
Consumer - NO
Consumer - SWConsumer Business
Nov Dec Jan
1,5281,610
1,790
23% 55%
43%
19%
38%
Feb
1,690
3. Scalable model – targeting SEK 10 bnloan book by 2020
Target volumes (SEKm) Target pre-tax Profits (SEKm)10,000
2020F2019F
7,500
2018F
5,000
2017F
2,800
2016
1,610
1,420
Consumer Business
420
2020F2019F
290
2018F
160
2017F
70
2016
11
SEK5bn in loans by 2018 and SEK420m in pre-tax profit in 2020
Potential to capture market leadership in SME financing
Agile and quick financing solutions to drive growth for our clients` Targeting high volume customers with development needs for tailored solutions. i.e. Godt Levert
` Combining credit lines, factoring, invoice management and insurance provides us with an holistic view of the clients needs
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Growth Financing and reduction of working capitalMany companies are working hard at reducing the need for equity (i.e. PE owned companies). More advanced combinations of purchases of invoices, inventory financing, cross border factoring combined with insurance products are allowing for this. Avida is targeting this market segment with the required tools and experienced people.
` Credit linked to invoice management
` Export financing with insurance
` Digital B2B factoring solutions
` Working capital asset financing
` Invoice lending
` Invoice purchasing with and without recourse
` Invoice administration
Specialized high volume solutions that require fast IT development` Significant financing niches open due to need for highly specialized technical solutions
` Very good customer lock in if highly integrated and specialized financing solutions are deployed9
4. Renewed management team
• Started in Avida as of November 2016• Selected experience: CEO in Infocare, Managing Director in Bisnode,
Enterprise Director in Microsoft and Engagement Manager in McKinsey• M. Sc. in Industrial Engineering from the Norwegian Institute of Technology
and MBA from Harvard University
Johan Anstensrud – Chief Executive Officer– 560 000 shares
• Started in Avida as of October 2015• Selected experience: Co-Founder in ITL Group, CFO in Arvato Nordics, CFO
in Gothia Financial Group, Finance Director in G4S Norge and CFO in The East Asiatic Co / Heidelberg (Beijing, China)
• M. Sc. in Finance & Accounts (Auditing) from Århus Business School
Lars Dencker Nielsen – Chief Financial Officer –1 744 000 shares
• Started in Avida as of May 2016• Selected experience: Senior Advisor in Centigo, Head of Management Control
in Länsförsäkringar Bank, Head of IT in DnB NOR Bank (Sweden), Director Capital Markets as well as Director IT in Svenska Handelsbanken
• M. Sc. in Business and Economics and B.Sc. in IT from Halmstad University
Katrin L. Wallin – Chief Information Officer –68 000 shares
• Started in Avida as of May 2016• Selected experience: Risk Director in Santander Consumer Bank
(Sweden), Head of Credit & Risk in Marginalen Bank, Head of Credit & Risk in Citibank Consumer Bank and Manager in KPMG
• B. Sc. in Public Administration from the University of Stockholm
Martin Ahlberg – Head of Consumer –100 000 shares
• Started in Avida as of November 2015• Selected experience: CEO in Arvato, Sales and Marketing Director in
Gothia, Sales and Marketing Director in Aktiv Kapital, Head of Football at Football Association of Norway and Police Constable at Oslo Police District
• B. Sc. in Police Studies from the Norwegian Police University College
Tore Krogstad – Head of Business (NO) –308 000 shares
• Started in Avida March 2017• Selected experience: Head of Corporate in Collector Bank as well as
Head of Products within Corporate Banking in Marginalen Bank• Several courses within Business, Strategy, Management and Marketing
from IHM Business School, UC Business School and ESI International
Jessica Sparrfeldt – Head of Business (SE & FI) –41 000 shares
• Started in Avida November 2016• Selected experience: Partner Bridgehead, Chief Analyst Aktiv Kapital,
Chief Analyst PRA Group Europe• BI, Business School, Oslo
Øystein Dannevig – Chief Analyst – 41 000 shares
5. Shareholder focused company
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Growth
Return on equity
III Capital ratios
Dividend policy
� Significant growth opportunity; realistic target of SEK 10 Bn loan book by 2020 by pursuing opportunities in both consumer and business
� Dynamic allocation of capital to products/segments with best risk/reward
� Target return on equity of more than 25% in line withindustry average
� Lower ROE in the short term due to investment in organizationand infrastructure
� Current CET1 ratio target of ~13%� Current total capital ratio target of 14.5-15.0%� SEK 208 million raised from Oct 2015� Will leverage capital markets for both debt and additional equity
to grow intelligently
� Target dividend payout ratio of 35%� No dividend payments in short / medium term due to growth
focus
5. Active key owners
• Chairman in Avida Holding AB since October 2016• Selected experience: Partner in Ubon Partners, Board
Member in PRA Group, Board Member in Acano, CEO in Aktiv Kapital, VP of Telepresence Sales in Cisco, President of EMEA in Tanberg and Manager in McKinsey
• M. Sc. in Economics and Business from Norwegian School of Economics
Ubon Partners - Geir Olsen* – Chairman – 13 134 000 shares (28.1%)**
• Board Member in Avida Holding AB since October 2016
• Selected experience: Board Member in Storebrand, Partner in Magni Partners and Head of Bank and Insurance Research in DNB Markets
• M. Sc. in Finance from Norwegian School of Management (BI) and Università Commerciale 'Luigi Bocconi‘ (Milan, Italy)
Magni Partners (Trøim) - Håkon Fure* – Board Member –11 351 000 shares (24.3%)***
Note(*) members of the board of both Avida Holding AB and Avida Finans AB | Note(**) owns 1/3 of Whiteout | Note (***) indirectly through Magni Partners
• Board Member in Avida Holding AB and Finans AB since October 2015
• Selected experience: Partner in Icon Capital, Partner in McKinsey, VP in Merrill Lynch International and Associate in Credit Suisse First Boston
• B. Sc. In Business Administration from University of Denver and MBA from Kellogg Graduate School of Management
Icon Capital - Christian Bjørnstad* – Board Member – 10 890 000 shares (23.3%)
• Board Member in Avida Holding AB since October 2015• Selected experience: Owner, CEO, Executive Chairman and Board
Member of several companies within the Midelfart conglomerate• B. Sc. in Finance from the London School of Economics as well as
Stern School of Business at New York University
Celina Midelfart* – Board Member – 4 363 000 shares (9.4%)
Diversified, scalable and set for high growth
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Reshaped, automated platform - well set up for growth across the Nordics
Renewed, strong management team that “has done this before” – set to do it even better this time
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Scalable model – targeting SEK 10 Bn loan book by 2020
Shareholder friendly set up with long-term and active key shareholders
Diversified business - well positioned to capture large opportunity in the SME market in the Nordics
Whiteout AS (Ubon Partners) 1 420 000
Cumulus Associates AS (Johan Anstensrud) 560 000
Håkon Fure 355 000
IC Financial AS (ICON Capital) 355 000
Larger shareholders
Top 20 shareholders as of 24.03.2017 Outstanding warrants as of 24.03.2017
Profitable growth across the Nordic region through insight and new products
• Targeting SEK5bn in 2018 and SEK10bn by 2020 through growth in consumer and business segments
• Broaden business/SME product offering around existing factoring and receivables offering more comprehensive loans and cross boarder products
IContinued strong growth withinconsumer finance and business SME markets across Norway,
Sweden and Finland
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Digitalizedprocesses and productsIII
Actively leverage capital markets in order to adjust
capital position according to growth ambitions
II Big data / analytic driven sales,scoring and follow up
Avida is looking to build a lasting competitive advantage in distribution and credit scoring by combining technology and automation with superior analytics
• Aim for building best in class big data analysis and analytics department• Focus on building access to more analytics and data on both customers
and potential customers• All customer decisions are planned to be data driven
• Fully automated systems in consumer finance – pioneering similar offering in the much larger Nordic Business/SME market
• All analytics to be supported by digital data collection and automated decision systems
• Growth will be adjusted to the Company’s ability to find and develop profitable niches with attractive return on equity
Specialist players gaining momentum – example consumer lending, but expanding to business
Consumer lending, Norway Lending volumes and market shares, niche players
Source: Companies, Norwegian FSA, DNB Markets. Niche players: Bank Norwegian, Komplett Bank, Nordax, yA Bank and Monobank.
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2009
2010
2011
2012
2013
2014
2015
2016
NO
Kbn
Norwegian consumer loans
5%
10%11%
14%
17%
20%
25%
31%
0%
5%
10%
15%
20%
25%
30%
35%
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20
30
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50
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NO
Kbn
Lending volumes other
Lending volumes niche players
Market share, niche players (RHS)
Underlying potential for continued volume growth and attractive margins in consumer lending
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806040200
2015
116.3
2014
108.2
2013
106.8
2012
102.1
2011
102.4
2010
90.0
• Since 2010, consumer credits have increased by an average of ~5% annually
• Sweden’s central bank adopted a negative interest rate policy from early-2015 to boost the economy and consumer spending
• Regulatory body Finansinspektionen introduced stricter credit checks and supervision in consumer credit from July 2014
Consumer lending * in % of household debt **
Consumer lending * in % of consumption **
Sweden – consumer credit market, excl. cards (SEKbn)
12% 12%11%
9%
7%6%
5%
4%
3%
NO
NL
DK
SE
FI
DE
PL
FR
GB
16%
13% 13%12% 12%
11% 11%
7% 7%
NO
FI
NL
PL
SE
DE
DK
FR
GB
Finland – consumer credit market, excl. cards (EURbn)
Norway – consumer credit market, excl. cards (NOKbn)
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66.2
2014
65.1
2013
62.9
2012
58.7
2011
58.6
2010
57.0
• Since 2010, consumer credits have increased by an average of ~3% annually
• Borrowers are taking advantage of low interest rate environment by increasing borrowing
• Good profitability has attracted several new entrants in recent years
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10
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8.7
2010
8.4
2015
9.4
2014
9.0
2013
8.7
2012
8.9
2011
• Since 2010, consumer credits have increased by an average of ~2% annually
• Low consumer finance penetration measured in percent of total household debt as well as overall household consumption
• Finnish consumer market moderately crowded with positive future outlook
Note(*) Definitions may vary accross countries Note(**) Based on 2015 figures – source OECD, Euromonitor, Statistics Sweden, Statistics Norway and Bank of Finland
Corporate lending opporunity significantly larger – 15x
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1 0661 014
+4%
2015
1 2631 189
1 3291 210
2011
1 135
20142013201220102009 2016
Norway
Outstanding loans in Nordics corporate lending market, SEKbn1
1. 2016 average exchange rate applied for all years: EUR/SEK 9.4704, NOK/SEK 1.0199 (Riksbanken)Source: FCI
20152012
+3%
2014
1 9411 994
2013
1 8741 825
2009
1 676
20112010
1 7061 856
2 072
2016
1 687
20102009
1 5081 603
2016
2 054+5%1 921
1 776
20142012
1 989
2013 2015
1 847
2011
Sweden Finland
STOCKHOLMVisiting address:Södermalmsallén 36
Postal address:Postbox 38101100 64 Stockholm
Contact information:Phone: +46 08-56420100Email: [email protected]
OSLOVisiting address:Grenseveien 92
Postal address:Postbox 6134 Etterstad0602 Oslo
Contact information:Phone: +47 23335000Email: [email protected]
HELSINKIVisiting address:Itsehallintokuja 6
Postal address:Vänrikinkuja 302600 Espoo
Contact information:Phone: +358 7575 50070Email: [email protected]