Aprila Bank ASA | Q3 2018 | 5 November 2018 Disclaimer - PowerPoint PPT Presentation

Aprila Bank ASA | Q3 2018 | 5 November 2018

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 Status 02 Key figures 03 Appendix 3

Aprila at a glance A newly established digital niche bank focusing on intuitive on-the-spot financing solutions for SMEs • Innovative distribution model - providing working capital financing inside well-established business systems Revolutionary simple 01 business financing • Distribution agreements with ERP system providers Tripletex (Visma), Xledger and Uni Micro • Digital and seamless onboarding – making working capital products available for a new market Reaching a large 02 • Products that are easy to understand and use - accessible when and where you need financing underserved market • Transparent and understandable pricing • With Aprila Invoice Sales we have introduced a new non-recourse factoring product; spot sale of invoices with real-time and risk- 03 adjusted pricing, automatically booked in the accounting system Introducing new products • New product releases will depend on distribution agreements and channels • Scalable architecture developed in-house. Integrations made available through own APIs Utilising technology to • Access to up-to-date accounting data through ERP-integration combined with short credits provide a good platform for 04 create competitive collection of credit information and development of data models for prediction and price optimisation advantage • Very low transaction costs due to digital onboarding, real-time credit scoring and pricing 4

Our first product Financing that is easy to understand, accessible when and where you need it Integrated 1-click activation Digital and seamless onboarding 1-click financing integrated with invoice process 5

Status Highlights Q3 • Distribution Cloud based ERP is core. Good feedback and results in Tripletex, focused on increasing # of customers. Xledger and Uni Micro integrations expected in Q1. Dialogue with other system providers and channels • Products Module for retail deposits in Q1. New financing products will depend on partner agreements • Data and analysis Data and analysis team fully staffed; focus on prediction, pricing, identifying anomalies and reporting • Preparing for scale - Continuous improvements in internal processes - Continuous improvements of the technology platform - Expanding the scope of our APIs – aiming for ‘plug -and- play’ functionality for new partners • The APRILA share Registered on N OTC since Oct 19 th 6

Team 16 team members in place Per Christian Goller Katrine Olsen Chief Executive Officer Chief Risk Officer Fondsfinans, Bankenes Sikringsfond, Opera Software etc. KPMG, Santander BSc UMIST MBA NHH BSc NHH MSc CBS Israr Khan Heiki Strengelsrud Christian Lund Kjetil S. Barli Øystein Dannevig Lene Gridseth Chief Digital Officer Chief Customer Chief Credit Officer Chief Financial Chief Analytics Chief Operating Officer Officer Officer Officer DNB, Marked.no, Ikano Bank, Lindorff, Fondsfinans, Avida Finans, Capgemini Capgemini DNB, Gjensidige, IBM PA Consulting PRA Group, Aktiv Kapital Fondsfinans Computer eng. HOA MSc BI MSc BI MBA IE Madrid MSc Ind.øk. NTNU MSc BI MSc NHH Sjur Marius Høgøy Marte C. S. Hauge Credit Manager Customer Support Grønningsæter Head of UX Brødboksen.no Fanbooster, DNB Social Capgemini EMMA BI Anthropologist UiO BSc BI Karl Erik Vincent Ambo Aleksandr Andreas F. Rose Prithivinath Ravindranath Asbjørnsen Technologist Petrochenkov Head of Product Head of Data Technologist Technologist Avida Finans, Webstep, Spotify, Nordcloud, Arvato PRA Group, Siemens. Capgemini Consulting Okko Re:Store BSc UiA BSc Computing Monash MSc NTNU MSc LETI 7

Table of contents Overview 01 Status 02 Key figures 03 Appendix 8

Key figures ~400 customers - NOK 67m purchased Key comments Net customers accumulated 1 (YTD 31 Oct 2018) Purchased amount accumulated 2 (YTD 31 Oct 2018) # NOK million • Piloting of Aprila Invoice Sales in Tripletex 398 66.7 commenced 11 April 324 • Launch 26 June 222 • Incorporated in Tripletex’ project module 11 38.1 September 159 • Status as of 31 October: 87 13.2 5.3 22 398 customers - 8 1.6 0.3 0.0 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 - NOK 67m purchased (2,257 invoices) Net new customers 3 (YTD 31 Oct 2018) Purchased amount by month 2 (YTD 31 Oct 2018) NOK million # 28.6 24.9 102 72 74 65 63 7.9 3.7 14 8 1.3 0.0 0.2 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 Note 1: Customers at EOP, net of closed accounts. | | Note 2: Nominal amount of invoices. | | Note 3: New customers onboarded in the period, net of closed accounts. 9

Active customers Increasing share of active and recurring customers Key comments Active customers 1 by sold invoices (YTD 31 Oct 2018) # of active customers by industry (31 Oct 2018) # of customers Active customers YTD • 219 of 398 customers (55%) have sold 82 31 Oct 2018 = 219 invoices (defined as active customers) 59 • 72 Services, construction and ICT constitute 27% 33% Services 50 73% of our 219 active customers and 76% Construction 38 219 of purchased volume 32 ICT • Others Annual customer revenue range from 0 to 38 17 17% NOK 40 million 50 23% • Active customers in % of total net 1 2-5 6-10 11-30 >30 # of invoices customers per month is gradually increasing; 43% in October Active customers 1 vs. total net customers Recurring customers 2 in % of active • Recurring in % of active customers also shows a positive development; 73% of the 398 Active customers customers who sold invoices in October Inactive customers 324 sold two or more Active in % of total 76% 43% 73% 40% 226 62% 222 59% 59% 34% 50% 50% 194 31% 30% 27% 159 25% 155 87 105 172 22 130 8 60 67 16 54 6 27 2 6 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 Note 1: Active customers = customers who have sold one invoice or more in the period | | Note 2: Recurring customers = customers who have sold two invoices or more in the period 10

Key invoice figures Solid margin expansion in September and October Key comments Invoiced amount 1 (YTD 31 Oct 2018) Purchased amount by end customer sector NOK million NOK million • Accumulated available invoiced volume YTD amounted to NOK 431 million on 31 191 14.1 October 21% Construction 22.8 34% Retail • With an accumulated purchased amount of 117 NOK 66.7 million, the conversion rate 4 YTD Services 66.7m 13.4 ICT is 16% (in NOK) 63 20% 4.0 Others 43 6% Measured by # of invoices, conversion - 12.4 14 19% rate YTD is 17% 2 0 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 • VWA margin YTD as of 31 Oct: 2.45% - Strong margin increase during the two Margin 2 (YTD 31 Oct 18, volume weighted average) Granted days 3 (YTD 31 Oct 18, volume weighted average) past months as a result of three price adjustments % # days 2.64% 2.64% ‣ Transaction fee increased from NOK 2.46% 24.7 2.39% 23.7 23.1 10 to NOK 29 ultimo August 2.18% 21.8 2.16% 2.14% ‣ General price level increased medio 17.5 September 12.8 10.4 ‣ Dynamic pricing of late payers introduced primo October • VWA granted days YTD as of 31 Oct: 23.4 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 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 11 purchased in the period. | | Note 4: Conversion rate = Purchased in % of invoiced.