Prezentacja Wyników 1 Kwartału 2015 Roku Grupa KRUK
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Presentation of KRUK Group June 2020 Agenda KRUK - Introduction Operating activities Financial statements Additional information 2 KRUK Group at a glance 1Q 2020, in PLN mn PLN 326 mn PLN 7,396 mn No. 1 Estimated remaining Cash EBITDA in Poland and Romania collections (1Q 2020) (31.03.2020) 1,810 219 46 Investments Recoveries PLN 477 mn 6 6% countries of operation Portfolio recoveries ROE with expansion plans (1Q 2020) (03.2019 LTM) 45% for future 366 53 0 24% 20% 2.1x PLN 57 mn Investments Recoveries PLN -62 mn 682 NET debt to cash Investments in new Net result 334 137 EBITDA debt portfolios 68 11 (FY 2019) 11% 0 (1Q 2020) (1Q 2020) Investments Recoveries Investments Recoveries - Portfolio carrying amount as at March 31st X% 2020; Other financial data as for 1Q 2020 3 We help our clients pay their debts We stand in line with social and legal We treat debtors as norms of debt our clients repayment We help build credit We offer debt history settlements We offer We develop relations participation in our through visits of our loyalty scheme advisors We promote debt settlements in media 4 In 2019, KRUK’s cash earnings remained on an upward trend Cash from credit management activities (PLNm) Financial performance (PLNm) 350 330 40% 340 2000 1600 330 credit management 52 320 net profit 295 310 300 277 35% 1800 290 1400 67 280 270 ROE (%)** 249 260 1600 250 recoveries from purchased 30% 240 59 1200 230 204 portfolios 220 1400 28% 1,131 210 200 26% 25% 190 26% 26% 1000 180 1200 Cash EBITDA* 1,005 24% 170 24% 160 150 152 32 20% 140 1000 837 800 20% 130 19% 30 120 98 1,782 110 100 81 800 32 90 630 1,577 600 66 15% 80 40 1,369 70 14% 525 60 600 489 50 40 33 14 400 10% 992 30 -62 400 344 20 292 326 10 41 825 0 200 -10 212 6% 5% 200 477 -20 341 712 -30 451 538 -40 -50 2011 2012 2013 2014 2015 2016 2017 2018 2019 1st Q 0 0 -60 -70 2020 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 1st Q 2020 CAGR 1 Q 1 Q change 1Q PLNm 2011 ‘11- 2018 2019 2019 2020 yoy 2020 ’19 Accumulated number of purchased 7.7 8.8 8.9 revenue 274 306 199 -35% 21% debts (million) Accumulated expenditure on debt EBIT 96 126 -8 1068% 21% portfolios 6,474 7,255 7,313 (PLNm) Accumulated recoveries from Cash EBITDA 212 257 326 12% 23% purchased portfolios 7,426 9,208 9,685 (PLNm) net result 66 98 -62 -163% 20% Employment (FTEs)*** 3,184 3,263 3,085 * Cash EBITDA = EBITDA + recoveries from purchased debt portfolios - revenue from collection of purchased debt. ** Return on equity at the period’s end. *** FTEs – the number reflected in the cost of salaries, calculated based on full time job equivalents rather than the actual number of employees. 5 Management Board of KRUK S.A. – debt management professionals with the Company for more than 15 years Changes on the Management Board of KRUK S.A. • Agnieszka Kułton, responsible for purchased portfolio operations, resigned from her position as a member of the Management Board with Piotr Krupa, Michał Zasępa, Urszula Okarma, Iwona Słomska, Piotr Kowalewski, effect as of May 28th CEO and President CFO and Member of Member of the Member of the Management Board 2020. On May 29th, Piotr of the Management the Management Management Management Member, Purchased Kowalewski took up the Board Board, Finance Board, Strategic Board, Marketing, Portfolio Operations position on the Transactions and PR and Human Management Board. Business Partners Resources With KRUK since Relations 2004. Since 2015, • Iwona Słomska, in charge Shareholder and co- Member of the With KRUK since he has served as of PR, marketing and founder of KRUK Supervisory Board With KRUK since 2004, initially as Head of the Group’s human resources, resigned S.A., President of of KRUK in 2005- 2002 as Head of Marketing and PR Debt Management. her post with effect as of the Management 2010. He joined the Telephone Director; since Management Board July 31st 2020. Her duties Board since 2005. Management Board Collection and Head 2009, also member as of May will be taken over by other He is responsible for in 2010, responsible of Financial responsible for HR 29th 2020. members of the KRUK IT, Corporate for finance, risk, Institutions Division. as Member of the Management Board, and Governance, portfolio valuation Member of the Management as of August 1st 2020 the Processes, Audit and investor Management Board Board. Management Board will and Corporate relations. since 2006. comprise four members. Strategy. 6 Experienced members of the KRUK Supervisory Board and stable shareholder structure Current positions: Supervisory Board Member at ATM Grupa S.A., Nest Bank S.A., BFF Polska Piotr Stępniak S.A., Asseco Business Solutions S.A., Grupa Kęty S.A. and ZE PAK S.A Stable shareholder structure Experience: President of the Management Board of GETIN Holding S.A.,Vice-President of the Chairman of the Supervisory Management Board of Lukas Bank S.A. Board Education: Guelph University (Canada), Ecole Supérieure de Commerce de Rouen (France), Purdue University (USA). 9,9% 1,2% Katarzyna Beuch Experience: Bank Zachodni S.A., Ernst & Young Audit, Santander Consumer Bank S.A., KGHM Polska Miedź S.A, Management Board Member at GETIN Holding S.A. 9,2% Member of the Supervisory Education: Wrocław University of Economics (Poland), Association of Chartered Certified Board Accountants (ACCA). Current positions: Supervisory Board Member and Chair of the Audit Committee at mBank S.A., 10,8% Tomasz Bieske Supervisory Board Member at Prime Car Management S.A. Member of the Supervisory Experience: Dresdner Bank AG in Frankfurt (Germany), co-founder of Artur Andersen Poland, 63,3% Board former Head of Financial Markets Group at Ernst & Young. 5,6% Education: University of Cologne (Germany), chartered auditor. Experience: Investment Director at ING Investment Management Polska S.A., fund manager at Ewa Radkowska- Aviva Investors Polska S.A., Vice President of the Nationale Nederlanden PTE S.A. Management Świętoń Board, President of the Skarbiec TFI S.A. and Skarbier Holding S.A. Management Board Member of the Supervisory Education: Warsaw School of Economics (Poland), CFA and FRM. Piotr Krupa Board Current positions: President of the Management Board of BFF Polska S.A., Supervisory Board Other members of the Management Board Member at BFF MedFinance s.r.o. and BFF Slovakia s.r.o, KRUK TFI S.A. Krzysztof Kawalec Experience: Manager at IFFP Aviva Open-Ended Pension Funds Member of the Supervisory Education: Łódź University of Technology (Poland), Warsaw School of Economics (Poland), Board PAM Center University of Łódź, University of Maryland. Nationale Nederlanden Open-Ended Pension Funds PZU Open-Ended Pension Funds Current positions: Supervisory Board Member at FM Forte S.A., Ipopema Securities S.A., Octava S.A., Decora S.A., Supervisory Board Member and Chair of the Audit Committee of Ipopema TFI Piotr Szczepiórkowski S.A. ▪ 11% of the shares are held by Piotr Krupa and Member of the Supervisory Experience: Commercial Union Polska Group, Commercial Union PTE as President of KRUK Management Board Members. Board Management Board, Member of the Audit Committee of the Chamber of Commerce of Pension Funds (IGTE), Vice President of the Management Board of Aviva Towarzystwo Ubezpieczeń na ▪ 10 Polish Pension Funds hold some 48% of Życie, Chair and Deputy Chair of the Life Insurance Committee of the Polish Insurance Assoc. the shares in KRUK S.A. * Education: Warsaw University of Technology (Poland), investment advisor, full member of the Polish Society of Actuaries, CFA ▪ Active foreign investors – institutional Mateusz Melich Experience: Ernst & Young in Berlin, manager at Capital Markets Department of IPOPEMA investors from Europe and the USA. Member of the Supervisory Securities S.A., President of the Management Board of Dom Inwestycyjny ZENITH S.A., Board director at Mercurius Dom Maklerski Sp. z o.o. ▪ Share option plan for 2015-2019 covers over Education: Warsaw School of Economics (Poland), Ludwig Maximilian University of Munich 120 employees and the Board Members (Germany) * source: stooq.pl 7 KRUK Group – milestones and business model KRUK Group's milestones − innovation leader KRUK Group's business model 2000 Launch of the third party collection business BUSINESS PARTNERS 2001 Introduction of the success only fee in CMS Debt portfolio market emerges – decision to raise new equity insurance telecom cable TV other banks 2003 KRUK the CMS market leader companies operators operators media Enterprise Investors invests USD 21m (PEF IV) Purchase of first debt portfolio Third party debt 2005 First securitisation process in Poland, Debt purchase Branch opened in Wałbrzych collection Decision to replicate business model outside of Poland 2007 Entry into the Romanian market Debt collection process Innovative approach to debtors shared debt collection platform, tools and infrastructure 2008 Amicable settlement solutions (voluntary debt settlement or (IT, telco, call centre) litigation) introduced on a mass scale 2010 Legislative change – operation of ERIF EIB Advertising in media − tool for mass communication Amicable collection + Court collection Increased supply of non-performing debt 2011 IPO on the WSE, Entry into the Czech and Slovakia market Consumer unsecured Consumer secured Corporate and SME 2014 Acquisition of the first large mortgage-back debt portfolio debt (mortgage) debt debt Entry into the German market 2015 Acquisition of the first portfolios in Germany and Italy 2016 Acquisition of servicing companies in Spain and Italy We help our Clients (indebted people) pay 2018 20th KRUK Anniversary Record