Aprila Bank ASA | Q2 2019 | 14 August 2019 Disclaimer - PowerPoint PPT Presentation

Aprila Bank ASA | Q2 2019 | 14 August 2019

Disclaimer Forward-looking statements This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Aprila Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Aprila Bank include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that Aprila Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or other applicable regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2

Table of contents Overview 01 Highlights 02 Key figures 03 Outlook 04 Appendix 3

Highlights Q2 2019 Summary Q2-19 Our first five quarters • Net 619 customers onboarded of which 379 have sold invoices Q1-19 Q2-19 NOKm • NOK ~308 million purchased Purchased amount 81 89 • ~9,700 invoices towards ~4,000 different end customers Total income 1.6 1.8 Pre-tax operating profit -10.1 -6.4 Building the future 1 Yield on avg. net loans 24 % 30 % • Signed new agreement for distribution in Visma eAccounting • Deposit module to be launched in August • Integrations with Xledger and Uni Economy close to launch LTM • Good progress on new product development Q3-18 – Q2-19 Positioned to capitalise on accumulated insight Q3-18 - Q2-19 • NOKm Presence in several systems will allow for benchmarking Purchased amount 307 • Building analytical predictive capabilities • Total income 5.8 Product market fit confirmed by market survey and retention analysis Pre-tax operating profit -31.0 2 Equity EOP 112 Note 1: Annualised yield on average net loans. | | Note 2: Excluding deferred tax assets. 4

Table of contents Overview 01 Status 02 Key figures 03 03 Outlook 04 Appendix 5

Key figures 619 onboarded customers at EOP and NOK 89m purchased in Q2-19 Key comments Net customers accumulated 1 Purchased amount by quarter 2 # NOK million • 619 customers at EOP 100 619 89 • 562 NOK 89m purchased; 81 467 - 11% increase QoQ 325 • Net 57 new customers 37 • NOK 145 000 purchased per net customer 88 2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Net new customers 3 Purchased per net onboarded customer NOK thousand # 237 215 142 144 145 112 95 88 57 18 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Note 1: Customers at EOP, net of closed accounts. Net customers differ slightly from former reports due to different definitions in the new datawarehouse vs. the old. | | Note 2: Nominal amount of invoices purchased in the period. | | Note 3: New 6 customers onboarded in the period, net of closed accounts.

Active customers ~60% of the onboarded customers have sold invoices Key comments Active customers 1 by # of sold invoices Purchased amount by customer industry (Q2-19) >5 2-5 1 • Services, construction and ICT accounted for 75% of purchased amount in Q2 12 % 17 % 19 % 20 % 29 % 34 % Construction 30 % • ~80% of the active customers sold two 13 % Services 36 % 35 % invoices or more 40 % NOK ICT 35 % 89.5m • 379 of 619 open customer accounts Retail 52 % (~60%) had sold invoices at EOP Others 21 % 46 % 46 % 40 % 35 % 24 % • 260 customers sold invoices in Q2 14 % • Run-rate of NOK ~1 million purchased per 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 active customer per year Active customers 2 vs. total net customers Purchased per net acc. active customer 3 Net active customers acc. 61 % 392 58 % Inactive customers 55 % Net active in % 619 562 41 % 272 247 467 236 240 28 % 236 325 211 191 379 64 88 326 256 63 134 25 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Note 1: Active customers = customers who have sold one invoice or more. | | Note 2: Net active customers acc. = Active customers where the customer account has not been closed. | | Note 3: Purchased amount in the period divided by net active 7 customers accumulated.

Key invoice figures ~30% increase in available invoice volume Key comments Invoiced amount 1 Purchased amt by end customer industry (Q2-19) NOK million NOK million Available invoiced volume 1 in Q2 amounted • 767 to NOK 767m 593 22 % 24 % 563 Construction • With a purchased amount of NOK 89.5 Services million, the conversion rate 4 (in NOK) was NOK Real estate 11.7% (13.6% in Q1-19) 89.5m 8 % Retail 225 • 22 % VWA margin in Q2-19: 2.58% ICT 11 % • Others VWA granted days in Q1-19: 22.9 13 % 14 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Margin 2 (volume weighted average) Granted days 3 (volume weighted average) % # days 23.5 23.7 23.3 22.9 2.60 % 2.56 % 2.58 % 2.32 % 2.20 % 16.6 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Note 1: Estimated invoiced amount available to Aprila. | | Note 2: Gross interest and fee income in % of purchased amount, not accounting for accruals. | | Note 3: Volume weighted average number of due days granted to end customers on invoices 8 purchased in the period. | | Note 4: Conversion rate = Purchased in % of invoiced.

Loan losses and provisions Sound improvement in credit quality Key comments LLPs by stage 1 Loans by DPD (>30) NOK million % • LLPs of NOK 0.9m / 2.7% of gross loans at 13.5% 30 Jun 2019 1.9 0.4% 12.3% • Gross defaulted loans of NOK 1.2m 1.6% Coverage ratio 2 of 73% 7.7% 6.7% - 1.1 0.9 1.9 2.4% 1.4% 11.6% 1.0% • DPD >30: 7.7% of gross loans 0.8 1.8% 0.8 0.1% 0.0% 0.2 0.0 4.6% 0.1 0.0 3.6% 1.3% 0.1 0.1 0.1 0.1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Stage 1 Stage 2 Stage 3 31-60 61-90 >90 Gross defaulted loans and coverage ratio 2 Loan losses 3 Gross margin vs. final margin 4 (by vintage ) NOK million NOK million % 101 % 99 % 123 % 94 % 78 % 73 % 55 % 2.5 1.0 0.9 32 % 1.2 0.7 0.9 0.1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 0.0 Gross defaulted loans Coverage ratio 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Note 1: Stage 1: All exposures <= 30 DPD, Stage 2: Exposures 31 – 90 DPD, and exposures <= 30 DPD with negative risk class migration since initial recognition, Stage 3: Exposures >90 DPD and other non-performing exposures | | Note 2: Coverage ratio = LLP in % of gross defaulted loans. | | Note 3: Sum of loan loss provisions and realised losses in the period. | | Note 4: Gross margin = Gross margin at the time of purchase = Amount due – Disbursed Amount. Final margin = Gross margin adjusted for 9 collection income and loan losses.

Table of contents Overview 01 Status 02 Key figures 03 Outlook 04 Appendix 10

Aprila has already achieved product/market fit for invoice purchasing Next step is to scale up penetration of this product in the Norwegian SME Market More than half of our customers would be “very disappointed” if they were not able to use the product Very Not disappointed 2% A bit Disappointed 52% 46% 98% Product/market fit threshold 40 And they prove this by repeating to use the product with stable to increasing frequency 45 Likelihood of an onboarded customer using the product in a given month after onboarding 42 Percent 35 34 32 32 32 31 30 30 30 29 29 29 29 30 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Number of months after onboarding 11

Table of contents Overview 01 Status 02 Key figures 03 Outlook 04 Appendix 12