Transcript Why International Leasing?

5th of March, 2013
Insolvency - an opportunity for
the innovative entrepreneur
Ioana Necula
General Director
Key Issues
•
•
Who we are?
•
Short history of International Leasing
•
International Leasing within sector trends
Why International Leasing?
•
•
2
Business model
Current status and actions
•
What we have learned
•
Business Plan & Model
•
Leasing Activity
•
Distressed assets activity
WHO WE ARE?
3
Short History Of International Leasing
•
Set-up in 1995 as the first independent leasing company
•
Recognized by its competitors as a major trend setter
•
Co-founder of the National Union of Romanian Leasing (UNSLR) now divided into ALB and
ASRL
4
•
First private company to issue public bonds (2000, 2002 and 2005 – successfully repaid)
•
First private leasing company listed on the capital market (RASDAQ)
•
8.000 leasing contracts with over EUR 150 Mio
•
Very good reputation in the market
•
Specialized automotive and equipment financial leasing ticket size around EUR 30k
•
2011 developed a dedicated platform for distressed assets management
•
2011 - 2013 made several successful acquisitions of toxic portfolios.
Team structure
A team with over 15 years of leasing
experience
An enthusiastic and energetic team,
ambitious to ensure the success of all
complex projects
We developed a strong working
experience on leasing due diligence
projects
Ioana Mihaela NECULA
Main Shareholder of IL and GM
15 years of leasing experience
Catalin IONESCU
Business Development Manager
15 years of banking experience
All our senior team have an in-depth
leasing knowledge and support the
management in successfully taking over
leasing portfolios
We understand the particular risks of
leasing transactions and how to shape
our diligence approach to protect the
Beneficiary’s interest
Claudiu FILIPESCU
Sales Manager
10 years of leasing experience
Cecilia BĂSU Operations Manager
9 years of financial management
and consultancy experience
We have compelling and relevant
sector expertise, being one of the first
leasing companies set up in Romania
Building sound partnerships based on
professionalism, accountability and
integrity
Marius DĂNĂILĂ
Financial Manager–Portfolio
Analyst
5 years of leasing experience
5
Leasing Sector Synopsis - Trends Evolution
Economic downturn and fraud*
Evolution of non performing leasing from total granted credit
* Criminal groups frauded the leasing sector;
Financial market exposed to fraud lacking real forensic specialists at the time.
6
Source: ALB
International Leasing Within Sector Trends
International Leasing’s portfolio followed the trend of the overall market
ITL freezing period
* ITL financed only Q1 – Q3 (Q4 2010 – Q3 2011 = freezing period; reorganization procedure)
** ITL restarted financing in Q4
*** estimated figures
Source: ALB
7
WHY INTERNATIONAL LEASING?
8
Restructuring the Business
•
Good bank / bad bank model was proposed by ITL (first time in Jan 2009!)
•
Decision to declare insolvency took almost 18 months
– Creditors / banks’ consensus difficult to obtain
– Insolvency - the only viable solution
9
•
Insolvency protected both the company and secured the creditors assets
•
BCR as main creditor – critical role in restructuring International Leasing
•
The insolvency procedure started in Oct 2010 !
Restructuring the Business
Toxic
Leasing
Contracts
Repossessed
assets
New
financing
Free
Market
Acq.
ILB
“good”
portfolio
OldCo – Bad Bank (ILB)
NewCo – Good Bank
(ILI)
• Platform for management of distress
assets (goods & receivables);
• Due diligence services
• Services provided for ILI
10
Newly
acquired
portfolios
• IFN 100% owned by ILB
• Vehicle for new
business development
Creditors
• Better recovery
• Viable workout
solution for leasing
portfolios of banks
Restructuring the Business
OldCo – Bad Bank (ILB)
NewCo – Good Bank (ILI)
Valuation and acquisition
of distress portfolios
Assets realization
Toxic receivables
recovery
Business origination
Common management platform:
- Top & middle management
- Support functions (HR, IT,
finance & accounting, logistics)
Underwriting
Monitoring and
portfolio administration
Integrated common support platform for two complementary businesses create the synergies for
cost segregation and effectiveness.
11
CURRENT STATUS AND ACTIONS
12
What we have learned
• In difficult times for success to be achieved it is essential and critical to
convince and to ensure the support of the creditor through strong
entrepreneurial involvement and commitment
• Good business has to take advantage of the accumulated experience and
continue on improved basis. Therefore the leasing activity remains the
core business while capitalizing more on its potential.
• All experience and threats have a strong educative role and therefore new
capabilities have been identified to suit the new trends. Developing the
distressed assets managing platform is one of the positive results of our
struggling experience along with improving the management skills.
• Actively adapting to the new economical reality and conditions is a must
for the survival and a way to profitable opportunities.
13
Business model designed to meet current market evolution
•
Existence of a Healthy Leasing Company functioning on an improved basis
•
Functioning Distress Assets Platform to take advantage of the growing market opportunity for distress
assets acquisition or management, which will also handle the default risk from leasing activity.
•
14
International Leasing demonstrated a series of qualities that qualifies it for sustained growth:
 Significant mind share
 Young experienced and dynamic management team
 Proven dependable and flexible ERP system
 Constant string of innovative and profitable products
 Audited by a Big6 company
 Captive dealership network Trendo Automobile – Peugeot & Kia
 Recognized web domain www.leasing.ro
 Appropriate size to build on – not too small to be difficult and time-consuming to further develop; not
too large to be prohibitive to buy in
 One of the last independent Romanian leasing companies with sound reputation
Leasing Strategy and comparative advantages
Leasing strategy
• Customer for life’ policy - steady and loyal client base
• Financing the client not the asset – adequate response to the client’s investment needs
• Rigorous selection of new clients based on improved risk and information analysis
• Complete services adapted to client need (using the ILB platform for non-financial services)
Our advantages
Ethical behavior
Viewed as a “partner” by customer
Organization’s sales force
Integrated technology platform
Competition is driving commodization - Product innovation
Product and service differentiation
15
Portfolio Acquisition
•
Volume of portfolio acquisition to date:
Nominal
value (EUR)
Ongoing
Portfolio
Toxic Portfolio
2011* - 2012
Total
Gross
margin
Expected
732,000
11,600,000
12,332,000
100%
8,116,000
15,000,000
23,116,000
300%
* Started late in 2011 (August).
** Transactions currently ongoing.
16
2013**
Distressed assets - opportunities
• Need for the banks to clean their portfolios – approx. 3 billion EUR
nonperforming loans as per NBR statistics
• More owners and banks consider the alternative to sell toxic
portfolios or externalize the administration of such portfolios
• To buy independent assets in distress and restructure credits for
the Banks
• Lack of distress assets management capabilities and offers on the
market (for leasing and legal entities segment)
Distressed assets strategy and comparative advantages
Distressed asset management strategy
• Building sound partnerships with banks and leasing companies to ensure constant distressed assets
acquisitions (distressed receivables and goods)
• Also looking on free market acquisitions from either individuals, auctions, liquidators, bailiffs or other
leasing companies (distressed goods)
• Developing a sound and tested network relationships with trustable and efficient bailiffs
• Developing non judiciary procedures in order to gain information and to seize an amiable profitable solution
• Increasing business volumes to maximize profits
Our advantages
Profitable proven experience
Dedicated team with adapted skills and mind set
Ability to find solution and to set partnerships
Good reputation and trustable team
18
Our Offer
In regards of the experience and the expertize, International Leasing has the
capability to offer today the following services:
• Due diligence over existing portfolios
• Recovery of receivables and assets
• Liquidation of repossessed assets
• Management of repossessed goods in
specialized parks (auto and equipment)
• Portfolio and/or repossessed stock acquisition
Contact
Thank you for your attention!
Ioana NECULA
Director General
Tel./Fax: +40 21 305 5150
Mobile: +40 722 556 565
E-mail: [email protected]
http://www.leasing.ro/