Aprila Bank ASA | Q2 2020 | 14 August 2020 Disclaimer - PowerPoint PPT Presentation

Aprila Bank ASA | Q2 2020 | 14 August 2020

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

Aprila in brief Product and technology company aiming to reinvent SME banking and enable new job creation Making credit available for a large underserved SME market Key figures • Offering credit to customers where they are, when they need it • Transparent and understandable pricing; no access fees or lock-in periods • Credit assessment based on live data from online accounting systems # of SME customers 2,021 (12 Aug 2020) Leveraging technology to create competitive advantage Average net loans per customer • ~41,000 Scalable architecture developed in-house; integrations through APIs (NOK, 30 Jun 2020) • In-house developed data warehouse; enables data-driven decision making and facilitates powerful predictive analytics Gross income per customer • Real-time credit scoring and pricing based on machine-learning technology ~12,000 (NOK, annual run-rate June 20) 1 Access to ~130,000 SMEs from Q2 2020 and four products Yield on net loans 21% from Q4 2020 (Q2 20, annualised) • Commenced operations in Q2 2018, launching spot factoring integrated in Tripletex (online accounting system) Funding cost 1.75% • Credit line up to NOK 500k launched in Tripletex on 16 Dec 2019 and in own (p.a.) 2 channels (kassekreditt.no) 20 Dec 2019 • Home rental product (in cooperation with FINN.no) and Pay with Aprila to be launched in H2 2020 Note 1: Annualised gross income in the period divided by average number of unique customers in the period. | | Note 2: From Q4 2020. 4

Highlights Q2 2020 Summary 50% customer growth in the quarter and 125% year-to-date Q2 20 • At the end of Q2 20, Aprila had 1,812 customers • Net 605 customers (+50%) were added in the quarter Q1 20 Q2 20 NOKm • During the first half of 2020, Aprila has added net 1,010 new customers (+125% vs. year-end 2019) Purchased amount 97 80 Gross loans 58 76 Completed private placement, launched in Fiken and signed agreement with FINN.no Gross income from lending 3.9 3.5 • Aprila successfully completed a private placement of NOK 75 million Total income 2.6 2.4 • Fiken, an online accounting system with ~35,000 users, launched spot factoring from Aprila Pre-tax operating profit -12.8 -12.1 • Primo July, Aprila entered into an agreement with FINN.no to offer a fully digital home rental Yield on avg. net loans 32 % 21 % marketplace. The service will launch in Q3 2020 LTM Temporary drop in gross income in Q2 due to Covid-19 LTM ending • Aprila implemented measures to reduce the credit risk at the end of the first quarter, resulting in Q2 19 Q2 20 NOKm lower approval rates for spot factoring in March, April and May, and hence, a decline in purchased Purchased amount 307 380 amount in the second quarter Gross loans 32 76 • The credit rules were eased medio May and spot factoring volumes returned to pre Covid-19 level Gross income from lending 7.6 13.0 in June Total income 5.8 9.2 • The bank’s interest income took a planned hit in April and May as a result of a Covid -19 campaign Pre-tax operating profit -31.0 -45.0 with 0.49% monthly interest rate on its credit line (67% discount compared to the ordinary 1.49% 1 Yield on avg. net loans 24 % 26 % monthly interest rate) Note 1: Gross income from lending divided by average net loans in the period. 5

Table of contents Overview 01 Highlights 02 Key figures 03 03 Outlook 04 Appendix 6

Key figures 1,812 customers and NOK 76m in gross loans at EOP Key comments Net customers accumulated 1 Purchased amount 2 # NOK million • 1,812 customers at EOP 1,812 112 Both 100 164 97 Credit line 125% growth from year-end 2019 - 89 90 311 81 80 Spot factoring 1,207 • Net 605 new customers in Q2 (+50%) 86 802 128 - Visma eAccounting accounted for ~35% 692 619 45 562 37 1,337 of the customers added in the quarter, 467 45 993 325 followed by Fiken with ~30%, own 692 712 619 562 88 467 channels with 16%, Tripletex with 14% 325 2 88 and other channels with ~5% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 • NOK 80m purchased - Credit rules were tightened primo Net new customers 3 Gross loans by product March; resulted in lower approval rates in March, April and May NOK million # 605 - The credit rules were eased medio May Credit line 76 and spot factoring volumes returned to Spot factoring 405 58 pre Covid-19 level in June 48 42 40 • 27 NOK 76m in gross loans at EOP of which 237 32 32 32 7 credit line accounted for 63% 23 142 110 95 88 40 73 35 32 32 57 32 32 27 23 1 1 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Note 1: Customers at EOP, net of closed accounts. | | Note 2: Nominal amount of invoices purchased in the period. | | Note 3: New customers onboarded in the period, net of closed accounts. 7

Spot factoring | Active customers ~57% of the spot factoring customers have sold invoices Key comments Active customers 1 by # of sold invoices Purchased amount by customer industry NOK million # >5 2-5 1 • Construction, services and retail accounted for 75% of purchased amount in 14 % 34 % 29 % 17 % 20 % 19 % 21 % 24 % 25 % 30 % Construction Q1 (75% in Q1 20) 33 % Services 11 % • 70% of the active customers sold two 36 % 40 % 35 % 39 % 29 % 39 % 34 % NOK Retail 35 % invoices or more (75% in Q1 20) 80m ICT 52 % • 16 % Others 857 of 1,501 open customer accounts 35 % 46 % 40 % 46 % 40 % 47 % 36 % 36 % (57%) had sold invoices at EOP 26 % 14 % • 507 customers sold invoices in Q2 (432 in Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q1 20) • NOK 159k purchased per customer active Active customers 2 vs. total net customers Purchased per active customer account 3 in the period The dip in H1 20 is a result of: - # NOK thousand 416 Inactive customers 371 ‣ lower invoiced amount per customer Total net customers 1,501 55 % 58 % 61 % 64 % 68 % 62 % 57 % 344 334 333 Net active in % (-20% in both Q1 and Q2 vs. Q4 19) 1,079 236 ‣ a (relatively) steep increase in the 226 41 % 644 757 number of new active customers 692 409 159 28 % 619 562 243 467 ‣ lower conversion rate 4 251 240 325 236 857 211 57 670 88 514 191 441 379 63 326 256 134 25 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Note 1: Active customers = customers who have sold one invoice or more. | | Note 2: Net active customers acc. = Active customer accounts at EOP. | | Note 3: Purchased amount in the period divided by customers active in the period. | | Note 4: 8 conversion rate = approval rate * take up rate

Spot factoring | Key invoice figures Strong growth in available volume (+40%) Key comments Invoiced amount 1 Purchased amt by end customer industry NOK million NOK million Available invoiced amount 1 in Q1 amounted to • 1,370 NOK 1.4 bn, +40% compared to Q1 19% Construction 25% • With a purchased amount of NOK 80 million, the 969 964 Services conversion rate 4 (in NOK) was 6% (10% in Q1) 787 766 7% NOK Retail 592 - The decline in conversion rate is a result of 563 80m Real estate the tightened credit rules (lower approval 9% ICT rate) and lower take-up rate 225 25% 15% Others 14 • VWA margin: 3.23% (3.16% in Q1) • VWA granted days in Q4 20: 20.6 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Margin 2 (volume weighted average) Granted days 3 (volume weighted average) % # days 3.0 %3.2 %3.2 % 23.5 23.3 23.7 22.9 22.2 22.6 2.6 % 2.6 % 2.6 % 2.5 % 19.7 20.6 2.2 %2.3 % 16.6 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 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 9 purchased in the period. | | Note 4: Conversion rate = Purchased in % of invoiced.