B2 Impact (B2H) Q2 2024 earnings summary

Executive summary

• Achieved strong collection performance in Q2 2024, with unsecured collections at 111% and secured at 155% of forecasts, driving solid cash flow and improved profitability year-over-year.

• Sale of discontinued Polish loan receivables portfolio generated a NOK 167m gain, significantly boosting Q2 results.

• Extended and renegotiated revolving credit facility (RCF) with improved terms, reducing cost of debt and extending maturity to June 2027.

• Dividend of NOK 0.7 per share paid in Q2, representing an 8% yield, with expectations for higher dividends in 2024.

• Maintained a solid financial position with low leverage (1.7x) and ample liquidity, supporting future investment growth.

Financial highlights

• Q2 2024 cash collections reached NOK 1,386m, with revenues up 6% to NOK 1,090m year-over-year, driven by asset sales.

• Cash EBITDA increased 15% to NOK 1,325m; adjusted net profit rose 38% to NOK 252m, including the Polish sale gain.

• Cash margin improved to 73% from 69% year-over-year; leverage ratio reduced to 1.7x from 2.5x.

• Portfolio investments in Q2 were NOK 337m, down from NOK 795m in Q2 2023, but at favorable terms.

• EPS increased to 0.68 from 0.48 year-over-year.

Outlook and guidance

• Targeting annual investments of NOK 2.5–3bn, with increased investment activity and improved pipeline expected in H2 2024.

• Expects continued strong collection performance into Q3, with some seasonal moderation.

• Plans to further reduce cost of debt, with blended cost expected to reach around 7% by year-end.

• Ambition to deliver improved dividend for the year.