Data Science. Credit Scoring. Digital Finance TOP-2 TOP-50 BEST ALTERNATIVE EUROPE TOP 100: INNOVATION BEST LENDING FASTEST GROWING FINTECH FASTEST GROWING FINANCE COMPANY LEADER WINNER «FINANCE» PLATFORM COMPANY IN EUROPE COMPANY IN EUROPE BENZINGA GLOBAL BIG INNOVATION FINANCIAL TIMES INC. 5000 EUROPE EUROPEAN FINTECH RED HERRING FINTECH AWARDS AWARD PUBLIC AWARDS 2017 2017 April 2018 March 2018 2016 2016
ID F FINANCE CE MISSI SSION INTER ERNATIONAL L CONSUMER FI FINANCE PR PROVI VIDER DATA TA-DRIVE IVEN 1 Fully in-house IT & risk management system Build an international data-driven financial institution to provide convenient financial PRODUCT CT 2 services Tailored to meet consumer needs driving high client retention RISK SK C CONTRO ROL Compliance with all regulatory 3 requirements across the group INTERN RNATIONAL E EXPERT RTISE SE 4 Scalable business model
ID Finance Overview LEADING INTERNATIONAL FINTECH COMPANY 9 countries c. 5 m clients STRATEGY $ 100 100+ m net income in Scala labilit lity New businesses are launched less 2021 than in 3 months Clien ent r t reten tenti tion Loyal recurring customers drive bottom line results Growth 221 221 % in net loan portfolio (Q1 2014 vs. Q1 2018) 3
ID Finance Overview LEADING INTERNATIONAL FINTECH COMPANY Innovative Digital Finance (ID Finance) Global expansion and unique registered clients Current presence Strategic focus CO 2018 5.3 .3 m Founded: 2012 Employees: 600 MX 2017 Key f y fact cts Geographic presence: 9 countries BR 2016 Products: consumer finance provider PL 2015 ES 2015 (HQ) GE 2014 KZ 2014 Build an international data-driven financial Missi ssion institution to provide financial services to the BL 2012 (R&D hub) underbanked RU 2012 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Scalable model: launch in new geography Financial highlights within 3 months $ 152 152 m Exceptional traction: net loan portfolio grew at 221% CAGR Q1 2014 – Q1 2018 $ 107 107 m 2 199 High client loyalty: 90% of new clients $ 66 66 m generate repeat business. 1 624 $ 39 39 m Investm tment t High Return on Marketing Investment: highl hlight hts $4.4 cash net income from $1 invested into $ 18 18 m 1 137 1 112 CAC $ 6.5 .5 m 803 717 $ 5.0 .0 m High ROAE: 43% in 2017FY 558 421 366 High profitability: $100+m of net profit 232 197 122 92 62 expected in 2021+ 2016 2017 2018F 2019F 2020F 2021F 2022F Technology and data driven: Proprietary scoring model and in-house IT platform Issuance ($m) Revenue ($m) Profit after tax 4
Our History RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY Loan issuance dynamics 2016 2017 2012 2013 2014 2015 $ 36 m $ 92 m $ 197 m $ 14 m $ 1.7 m $ 0.2 m Launch and risk optimisation CIS expansion European expansion LATAM expansion Russia Georgia Spa pain Brazil, il, Mexic ico Scoring and risk-management Kazakh akhstan an Poland New products: Round A: $3. $3.5m Installment loans Round B: $6. $6.0m AmmoPay and Solva Major f factors f for effectiv ive scalin ing Professiona nal a and m motiva vated Centralise lised I IT a and r risk sk- Monit Mo itorin ing o of key i ind ndic icators i in n global a l and nd l loca cal l teams infrastruct ructure real t l tim ime 5
Product Portfolio OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS High margin Minimum margin given Target lending market borrower risk Banks’ maximum margin Banks’ target Low margin lending market Low risk Medium risk High risk 6
Highly Efficient IT & Risk-management System ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT ID Finance taps into global and local pools of information Risk management present at every step of client life cycle Client acquisition Fraud prevention Scoring and fraud-analysis Client management Legal support CLIENT LIFE CYCLE Pre-collections Collections 10,000+ 00+ 98% 8% 70% 0% 90 90% Data points are collected and Applications are processed Of the debt recovery achieved Of clients become loyal analyzed in real time automatically in-house through efficient client customers through management system effective CRM system 7
Strong Management Team GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS Boris Batin, PhD Alexander Dunaev, CFA Javier Lopez Co-founder, Chief Executive Officer (CEO) Co-founder, Chief Operational Officer (COO) Chief Financial Officer (CFO) 15+ years of work experience in banking and finance 10+ years of experience in banking and finance 19+ years of experience in financial services and finance Previously held various positions at Deutsche Bank, Previous experience: Deutsche Bank, London Previous experience in General Electric and Standard Renaissance Capital and RBS within debt capital markets in Holds Chartered Financial Analyst degree Chartered Bank London and Moscow Graduated from ESADE University (Barcelona, Spain) with a Graduated from Imperial College with a degree of Master in Graduated from Cambridge University with a degree of Finance degree of Master in Business Administration Master in Economics Ekaterina Kazak Alessandro Ceschel Pavel Shareyko Chief Risk Officer (CRO) Chief Marketing Officer (CMO) Chief Technical Officer (CTO) 10 years of work experience in risk management 11 years of professional experience in Digital Marketing and 13 years of experience in software development, including international IT Projects development of high-load applications and financial Previously worked as Head of Russia & CIS Experian systems Analytics Previously successfully developed online internet businesses B2C, B2B and P2P in Spain – Ulabox, Previous experience: Lead developer at Itransition Graduated from Moscow State University of Economics, Logismarket, Socialcar, worked in MNC (Nestlé) and in early Statistics and Informatics Graduated from Belorussian State University stage startups Graduated from Padova University with a Master in Industrial Engineering and Business Administration 8
Client Acquisition Funnel HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY Conversion rates 2017 FY 2016 FY Historical data for 2017 10,0 26m 6m 21m 1m Website visitors, #m 8,0 9% We Websit ite 6,0 4,0 vi visito tors Conversion rate to 2,0 Conversion to applications increased by 1pp 0,0 applications Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 (Y-o-Y) 1,0 2.5m 1. 1.8m Applications, #m 0,8 33% 0,6 Applic icat ation ions 0,4 0,2 Approval rate has increased 0,0 Approval rate by 7pp (Y-o-Y) Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 300 800 00k 460k 46 Number of loans issued, #k Numb mber 90% 200 of l loan oans 100 issu ssued Conversion rate from visits to loans issued has reached 3.1% 0 Retention rate Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 (+1pp Y-o-Y) 80 Amount of loans issued, $m 5% $19 197m $9 $92m 60 Amount unt o of 40 loans i s issu ssued 20 Loan marketing Marketing cost has decreased 0 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 by 1.8pp (Y-o-Y) cost* * Marketing costs divided by amount issued 9
Portfolio Growth SIGNIFICANT PORTFOLIO DIVERSIFICATION ACHIEVED IN LINE WITH GROUP STRATEGY Value of loans outstanding (net of reserves), by country ($m) 120 96,1 96, 100 77,3 77, 80 57,4 57, 60 39, 39,0 40 22,8 22, 11,8 11, 20 5,8 5, 3, 3,3 1, 1,0 0 1H 2014 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 Q1 2018 Value of loans outstanding (net of reserves), by country ($m) December 2016 December 2014 March 2018 2% 3% 3% 9% 6% 6% 13% 13% 10% 10% 13% 24% 24% 43% 49% 49% $ 39 m $ 96 m $ 3.3 m 11% 77% 77% 18% 18% 22% Russia Kazakhstan Georgia Spain Poland Brazil Mexico 10
Portfolio Quality ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH Historical NPL* rates 50% Significant portfolio quality 43,3% 45% improvement 40% 35% 30% 23,5% 25% 20% 14,6% 12,1% 11,2% 15% 10,6% 10,1% 10,1% 9,7% 8,8% 7,2% 10% 5% 0% H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Q1 2018 Historical group level of NPL* 450 $30m 400 350 $16.5m 300 250 $417m 200 $386m 150 $193m $176m 100 50 0 Loans issued since launch NPL as of Mar-18 Repaid and performing loans Mar-18 11 * NPL = FPR 90d+
Geographical Expansion STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS Launc nch Popula lation* * (m) m) Inter ernet et users* (m) m) Mobile ile users* s* (m) Russia 2012 144 103 103 Kazakhstan 2014 18 10 15 Georgia 2014 4 2 3 Spain 2015 46 37 40 Poland 2015 38 27 27 Brazil 2016 208 123 130 Mexico 2017 127 73 86 Colombia 2018 48 27 33 USA 2019 321 239 258 Peru 2019 31 13 19 Current presence Strategic focus Tota otal 985 85 653 53 714 14 Country of presence ID Finance Geographic diversification 2013-2021. Loans issued 2013 FY 2017 FY E 2021 FY 1% 3% 100% 79% 20% 23% Share of Share of Share of 41% European European European and LatAm and LatAm and LatAm 0% 0% 21% 21% 59% 59% 33% Russia and CIS Europe Americas Other region (Asia/India…) 12 * 2015 WorldBank, UNdata, eMarketer; 2016 Statista, Budde
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