DT Partners Presentation. Warsaw 2014

Transcription

1 DT Partners Presentation Warsaw 2014

2 DTP What makes us unique DTP Group is a leader in the non-retail receivables segment, which includes small and medium-sized companies and persons running sole-proprietorships. Managers at DTP have 20 years worth of manager and director-level work experience in the debtcollection sector. 70% of the company s employees have been recruited from debt-collection companies. DTP Group, unlike its competitors, does not take part in receivables portfolio auctions and tenders. The company purchases only selected portfolios yielding the highest potential rates of return. DTP has the lowest borrowings in the sector. The indicator of debt to own funds is currently At the end of the first half of 2014, DTP was in 3 rd place on the market in terms of purchased receivables. DTP Group was the 3 rd largest in terms of capitalisation in this sector on the Warsaw Stock Exchange. 2

3 DTP Group main events of the 3rd of 2014 In March 2014, the company was floated on the Warsaw Stock Exchange (GPW). DTP group purchased receivables portfolios of a nominal value of 244 mln PLN in the first half of this year The value of purchased receivables portfolios increased by 15% in relation to 2013 at year-end, while in relation to the end of 2012, the increase was of 73%. At the end of the first half of 2014, the total value of managed assets, both managed for clients and purchased for DTP Group, was over 2.3 billion. The value of portfolios managed for bank and financial institution clients was 498 mil PLN at the end of the first half of Consolidated turnover amounted to million PLN in the first half of Excluding large one-off securities that had a large effect on the results of the first half of 2013, turnover increased by 53.9% yoy. EBIT by 21.6%, EBITA by 21.5% and net profit by 22.9%. 3

4 Financial results (1) Consolidated report of all income m PLN Sales turnover I-IIIQ 2013* I-IIIQ 2013 I-IIIQ 2014 Change % 22,825 42,125 36,611 60,4% EBIT 13,646 25,546 19,698 44,3% EBITDA 14,209 26,109 19,832 39,6% Net profit 14,748 20,648 18,485 25,3% IIIQ2013 IIIQ ,139 12,468 3,409 7,247 3,564 7,322 4,834 6,297 The consolidated financial results of the DTP Group SA for the period up to 30 th September 2014 amounted to 18,5 m PLN, in 3Q ,3 m PLN. This result was due above all to the size of income from the closure of purchased receivables portfolios. The financial results in the 3Q of 2014 (the compared period) were to a great extent affected by one client s receivable. The company estimates that this transaction increased the net result by 5.9 m PLN. This transaction took place in 1Q 2013, therefore, it has no inflluece on the comparative data for the 3Q I-IIIQ 2013* I-IIIQ 2013 I-IIIQ 2014 Change IIIQ2013 IIIQ ,0% 90,0% EBIT margin 59,79% 60,64% 53,80% -5,98 EBITDA margin 62,25% 61,98% 54,17% -8,08 47,8% 58,1% 49,9% 58,7% 80,0% 70,0% 60,0% 50,0% 58,1% 58,7% 50,5% 47,8% 49,9% 67,7% net margin 64,61% 49,02% 50,49% -14,12 67,7% 50,5% 40,0% 30,0% 20,0% IIIQ 2014 IIIQ 2013 *results less income from one receivable marża EBIT marża EBITDA rentowność netto EBIT margin EBITA margin net margin 4

5 Financial results (2) Consolidated balance sheet m PLN IIIQ 2013 IIIQ 2014 Change % Fixed assets 21,101 22,295 5,7% Commercial receivables 10,311 1,082-89,5% Other financial assets 110, ,630 26,4% In the 3Q of 2014, the Group continued its efforts to increase the value of its managed assets mainly through market analysis from the perspective of selecting the most attractive receivables portfolios for purchase. As a result, purchases to the nominal value of 110 m PLN were completed in the reporting period. Cash 19,638 15,006-23,6% Own capital 106, ,279 21,0% Long-term debt including: 29,778 30,159 1,3% other financial debt 26,700 29,574 10,8% m PLN IIIQ 2013 IIIQ 2014 Change % CF from operations -1,646-5,623 - amortization 0,115 0,113-1,7% Short-term debt including: 25,070 18,621-25,7% commercial debt 16,567 1,416-91,5% changes in receivables investments CF in investment activity ,932-0,046-0,315 - other financial debt 0,599 16, ,4% CF in financial activity 11,219 18,547 65,3% 5

6 DTP accounting methodology Example of payments and incomes for a purchased receivables portfolio purchase price 100 PERIOD total planned income % IRR 41% ACCOUNTING valuation at start of period income interest revenue amortization valuation at end of period % income to purchase price discount rate total income assets at the start of the IRR period difference between revenues and income assets at start of period reduced by amortization The purchased receivables portfolios are presented as short-term investments, as they contain almost exclusively out-of-date receivables and are initially accounted at their purchase price increased by capital gains tax in accordance with their proper value. The value of purchased receivables is assessed no less than once every calendar quarter-end. The valuation is set in accordance with a credible estimate of proper value calculated with the aid of estimation models based on estimates of discounted money earnings expectations. Estimated incomes from receivables portfolios include the capital element of the portfolio and the interest established on the discount base rate. The received capital element is accounted as a reduction of the portfolio value, while the interest element is taken as current period earnings. Differences between real and expected payments correct the interest income of a given period. For current period incomes, actualization of the value of purchased receivables portfolios may be included if such took place, as defined by changes in their proper values resulting from estimation changes in estimated future earnings for a given portfolio as well as changes in discount base rates. Incomes from financial assets valuated at proper values by financial results are presented in operational incomes as debt-collection earnings from purchased receivables portfolios. 6

7 Main Indicators DTP Group Indicators (thousand PLN) I-IIIQ 2013* I-IIIQ 2014 I-IIIQ 2013 Sales yield 59,7% 51,9% 60,6% ROE** 21,0% 20,5% 28,5% ROA** 14,3% 15,3% 20,1% C/I 47,6% 53,5% 43,4% * 1 st half 2013 without income from one receivable ** annuated indicators 7

8 Investment in the purchase of receivables portfolios (m PLN) total łącznie ( ) Value Wartość of portfolios portfeli w obsłudze serviced na on Investment Nakłady inwestycyjne spend IQ 2014 IIQ 2014 IIIQ 2014 IVQ 2014 Value Wartość of portfeli portfolios w obsłudze serviced na on Investment Nakłady inwestycyjne spend 8

9 Receivables portfolios Value of purchased receivables portfolios (m PLN) Value of clients receivables portfolios (m PLN) IVQ IQ IIQ IIIQ IVQ IQ IIQ IIIQ

10 Activities Structure of purchased receivables portfolios State as of m PLN State as of m PLN telecom 17 1% utilities 10 1% telecom 78 3% utilities 45 2% bank % bank % Non-retail % retail % Non-retail % retail % 10

11 Activities Receivables portfolios charted payments 41% 24% 24% 52% 47% 50% 53% 44% 39% 38% 36% 32% 30% 25% 31% 28% 24% 22% 27% 25% 22% 30% 18% 19% 18% % DTP - krzywa portfolios dla porteli purchased nabytych in w latach (IRR %, (IRR 276%) 37%, 276%) Konkurent Competitor 1-1 krzywa portfolios dla portfeli purchased nabytych in w latach (IRR %, (IRR 250%) 30%, 250%) Konkurent Competitor 1-2 krzywa portfolios dla portfeli purchased nabytych in w latach ( %) ( 274%) Benchmark competition chart payments, extended in the last period to 9 years, realized rate of return converge than the 8 years old DTP chart payments. Changes in the benchmark competition chart payments are mainly related last two periods of forecasts (8 and 9 years), in which planned additional 30% recovery of the investment. 50% 38% 51% 46% 41% 56% 36% 32% 32% 32% 29% 31% 26% 24% 25% 21% 19% 21% 18% 22% 20% 16% 13% DTP DTP - krzywa bank portfolio dla portfeli purchased bankowych in nabytych w (IRR latach 37%, %) (IRR 37%, 279%) DTP DTP - krzywa telecom dla portfolio portfeli telekom purchased nabytych in w latach (IRR %, 253%) (IRR 35%, 253%) DTP DTP - krzywa utilities dla portfolio portfeli purchased utilities nabytych in w latach (IRR %, 248%) (IRR 44%, 248%) 11

12 Portfolio returns Year of portfolio purchase Year of portfolio return odzysk Return odzysk Return 2013 odzysk Return 2012 odzysk Return 2011 Odzysk Return (lewa (left axis oś) ) Wydatki Spend on na portfolio portfele (prawa (right axis oś) ) odzysk Return 2010 Wydatki Spend on na portfolio portfele (prawa (right oś) axis ) 12

13 DTP group entities and assets 13

14 The development of the company DTP SA on the WSE (Warsaw Stock Exchange) March 2014 Qualification DTP SA to New Connect Lead - a segment of the market leaders alternative the turn of November and December 2013 Starting the process of tax optimization in the Group December 2013 Face value of debt portfolio reaches PLN 2Bn December 2013 DTP SA award for the best financial report in the competition The Best Annual Report 2012, The New Connect Market October 2013 FSC (Financial Supervision Commission) authorization of management assets of securitization fund December 2012 Bonds issued by Debt Trading Partners SKA on The CATALYST (regulated second-hand bond market) June 2012 Start-up business loan March 2012 DTP SA on the NewConnect (alternative stock exchange) December 2011 First bonds issuance of Debt Trading Partners SKA (PLN 15,8M) December 2011 Foundation of a law company - DTLEX July 2011 New investors on board, foundation of DTP SA (equity raised by PLN 20M) March 2011 Membership in KPF (Conference of Financial Companies) January 2011 Beginning of cooperation with KRD (National Register of Debts) August 2010 Purchase of DTP Unstandardized Securitization Closed Investment Fund May 2010 Foundation of Debt Trading Partners SKA May 2010 Foundation of Debt Trading Partners Sp. z o.o. February

15 Market features At the end of December 2013, the sum of unpaid debt increased by 1,5 bln PLN to 39,8 bln PLN. In the past year, the Poles unpaid debts increased by nearly 4% while the number of debtors increased by over 2% Unregulated debts are a result above all of unpaid mortgages and consumer borrowings as well as unpaid electricity, gas, telephone and accommodation bills, and also alimony payments and small borrowings. Total outstanding payments (bln PLN) Number of debtors in Poland (thousand) ,1 38,3 38,9 39,8 40,8 41,4 42, Source: InfoDług Report January 2014; P DTP forecasts 15

16 Market surroundings At the end of 1H, DTP is number 3 on the market in terms of purchased receivables. The average portfolio purchase price was 6,1%. With the current structure of owned portfolios and the average price on the market, DTP would be purchasing on the market at an average price of 7,2% Value of purchased receivables in I H 2014 (m PLN) Average receivables portfolio prices (% nominal value) , ,5 Konkurent Competitor 1 Konkurent Competitor 22 DTP Konkurent Competitor 3 Konkurent Competitor 4 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 16,9% 14,5% 14,0% 12,2% 12,3% 11,0% 10,8% 6,5% 5,5% 4,2% 3,0% 3,0% 3,5% 1,3% Detaliczne Retail Niedataliczne Non-retail Source: Parkiet, August 2014 Source: "Rynek obrotu wierzytelnościami ciągle na wznoszącej fali 27th May 2013 Dziennik Gazeta Prawna and Długi tanieją, ale zbyt wolno 17th April 2013 Dziennik Gazeta Prawna; Kruk; IBnGR; 16

17 Market surroundings (2) Value of receivables sector companies I H 2014 (mln PLN) , ,82 65,03 80,38 169,65 216,07 226,39 0 Konkurent Competitor 11 Konkurent Competitor 2 Konkurent Competitor 33 Konkurent Competitor 4 DTP Konkurent Competitor 5 Konkurent Competitor 6 Source: GPW, August

18 DTP Management Board Michał Handzlik CEO He began his career in banking in In 2007 he worked as a Director responsible for the strategy and planning in PKO BP Bank. In 2008 he assumed the position of Vice President of the Board of Getin Bank responsible for retail banking, then was appointed President of the Board of Getin Bank. In November 2009 he resigned from the President of the Board with the intention of starting their own business. Paweł Czechowski Board Member Since 2011 he has been a manager responsible for the area of investment and sales, also acts as a Member of the Board of DTP SKA. For many years associated with the debt collection sector, first as a Sales Manager in an international company Intrum Justitia Sp. z o.o., then as a Director of Sales in Ultimo Sp. z o.o. He is also a Member of the Supervisory Board in DTLEX SKA. Jacek Pytliński Board Member His professional career began in 2003 in the Macrologic company. Since 2005 he worked at Asseco Poland SA as the designer of banking systems. Since 2007, as part of his own business, he has worked on software in the field of transactional systems service insurance policies and bank loan servicing systems. From 2012, he has been the Director of the IT and Analysis Department. 18

19 Shareholder structure As of No. of shares % of shares Paged Capital Sp. z o.o ,57% JAMICO Sp. z o.o. Spółka Komandytowo-Akcyjna ,02% 27,06% Pioneer Pekao Investment Management SA ,35% 9,35% 47,57% Others ,06% 16,02% Total ,00% 19