Data Science. Credit Scoring. Digital Finance THE MOST INNOVATIVE - PowerPoint PPT Presentation

Feb-19 Data Science. Credit Scoring. Digital Finance THE MOST INNOVATIVE TOP-2 TOP-50 INNOVATION TOP-250 FINTECH 100 HOTTEST IN CREDIT SCORING FASTEST GROWING FINTECH FASTEST GROWING LEADER COMPANIES STARTUPS IN EUROPE SERVICES COMPANY IN EUROPE COMPANY IN EUROPE 1 2017 October 2018 September 2018 September 2018 April 2018 March 2018

1 EXECUTIVE SUMMARY 2 MARKET OVERVIEW AND COMPETITORS LANDSCAPE 3 PRODUCT & IT 4 KEY FINANCIALS AND FUNDING STRATEGY 2

Executive Summary LEADING INTERNATIONAL FINTECH COMPANY Company Overview Key Business Highlights • Industr try: digital consumer finance • Strong ong financ ancial al performa formanc nce: • Found nded ed: 2015, HQ Barcelona − $49m m revenue for 2018 (236 236% growth vs. 2017) • Employ oyee ees: : 300+ 300+ − $92m m issued for 2018 (121 21% growth vs. 2017) • Prod oduc ucts ts: Consumer instalment loans − $52m m gross portfolio in Dec-18 (88 88% growth vs. • Geography hy : Europe (Spain & Poland), LatAm (Brazil & Dec-17) Mexico) • Rapidly growing custom tomer er base: e: 1. 1.5m m registered users Global Expansion: Europe and LatAm Revenue as at Dec-18 (x2.4 vs. Dec-17) • Technology and data driven with fully in-hous use e IT platfor form and international expertise 610 MX 2017 BR 2016 PL 2015 ES 2015 (HQ) 92 BL 2012 (R&D hub) 323 67 201 49 15 2017 2018F 2019F 2020F 2021F 3

Executive Summary LEADING INTERNATIONAL FINTECH COMPANY Our mission Empowering underbanked to become financially included and live better lives by offering flexible, technology-empowered financial products Our strategy Key Numbers To build number er one online consum umer er lending ng platfor form 1.5 .5m registered users across Europe (Poland, Spain) and LatAm (Brazil, Mexico) c. 20,000 000 new registered users weekly To launc nch h new consum umer er prod oduc ucts ts:  credit cards with zero balance transfer $300m+ m+ of revenue from loans by 2021  money transfer & payments  credit monitoring and educational tool $600m+ m+ of revenue from credit cards by 2021  finance planner Our successful tractions was proved by top Recent Selected Awards The most inno novati tive ve in Fastest test growing ing fintec ntech Fastest test growing ing 100 hottest est credit dit scoring ing servi vices es company ny in Europe company ny in Europe e startup tups in Europe 4

ID Finance Solid Expansion Plan to Capture Market Opportunity in Latin America RAPID GROWTH EMPOWERED THROUGH EFFECTIVE SCALING STRATEGY Gross Loan Portfolio 2017 2018 2019 2020 2021 2016 Consumer loans Credit cards $0.5bn $1.7bn $6m $6m $28m 8m $52m $150m 0m Launch in Europe LatAm expansion Product diversification Further scaling Expand product range:  Achieving profitability of credit  Spai ain. . Jun-15 15  Brazil. . Nov-16 16  Credit cards (zero transfer card business  Poland and. . Dec-15 15  Mexico co. . Sep ep-17 17 balance)  New consumer loans  Exploring scaling opportunities Hired team Created pool of loyal  Overdrafts in other countries Launched unsecured customers  Current accounts/deposits lending  Currency exchange tools  Money transfers Major facto tors rs for effectiv ective e scaling ing Profes fessio ional al and d motiv ivate ated d Centrali ralise sed d IT and risk- Avail ilabili bility of fundin ding globa bal l and local al team am infrastr rastruc ucture re 5

Strong Management Team GLOBAL TEAM OF FINANCIAL SERVICES AND TECHNOLOGY EXPERTS Javier Lopez Alexander Dunaev CFA Kieran Donnelly Boris Batin PhD Co-founder, COO Board member Chief Financial Officer (CFO) Co-founder, CEO 15+ years of work experience in banking 10+ years of experience in banking and finance 30+ years of management experience in 19+ years of experience in financial services banking and finance Previous experience in General Electric and Previously held various positions at Deutsche Previous experience: Deutsche Bank, London Served as CEO of 4finance Bank, Renaissance Capital and RBS in London Standard Chartered Bank Holds Chartered Financial Analyst degree and Moscow Holds senior roles at Standard Bank Group, Graduated from ESADE University (Barcelona, Graduated from Imperial College with a degree Graduated from Cambridge University with a MDM Bank and Renaissance Group Spain) with a degree of MBA of Master in Finance degree of Master in Economics Yannick Del Ponte Alessandro Ceschel Antonio de Brito Ekaterina Kazak Bonilla Chief Risk Officer (CRO) Country Manager (Brazil) Chief Marketing Officer (CMO) Country Manager (Mexico) 10 years of work experience in risk management 11 years of professional experience in Digital 12+ years of experience in financial services 20+ years of experience working for financial Marketing and international IT Projects multinational companies. Previously worked as Head of Russia & CIS Previous experience in Asset Management Experian Analytics Previously held senior management positions in Previously developed online internet industry as well as in Enova (multinational businesses B2C, B2B and P2P in Spain – Servicios Financieros con Valor, Pretmex and online lending company) as Strategy and Graduated from Moscow State University of Ulabox, Logismarket, Socialcar, worked in MNC Fullerton Financial Holdings Operations Manager and Security Asset Economics, Statistics and Informatics (Nestlé) and in early stage startups Certified in Financial Institutions for Private Graduated from Padova University with a Graduated from Duke University at North Enterprise Development at Harvard Kennedy School Master in Industrial Engineering and Business Carolina, USA, with a degree of MBA Post Graduate Certificate in Corporate Finance at Administration (Operations and Strategy) Universidad Intercontinental 6

1 EXECUTIVE SUMMARY 2 MARKET OVERVIEW AND COMPETITORS LANDSCAPE 3 PRODUCT & IT 4 KEY FINANCIALS AND FUNDING STRATEGY 7

Pivotal Moment for Latin America FinTech Market The major FinTech categories FinTech adoption* (world), 2017 Money transfer & payments China 69% 69% Savings & Investments India 52% 52% $ 40 40 bn UK 42% 42% bn revenue ue by Financial planning Adoption in Brazil 2028 2028 is anticipated to Brazil 40% 40% (BR+MX) grow up to 69 69%* Australia 37% 37% Borrowing Spain 37% 37% Insurance World average 33% 33% *Adoption is a percentage of respondents in each market who reported using one or more FinTech service in that category. Calculated based on survey prepared by E&Y in 2017  Latin America is one of the world’s fastest growing markets for FinTec ech adoptio ion n and Brazil il is in Top-5 Top 5 market ets with the e highest hest FinTec ech adopti tion. n. The level el is expe pecte ted d to grow from 40% to 69% 8

Pivotal Moment for Latin America FinTech Market Household loans in Brazil and Mexico, $bn Transaction volumes on LatAm FinTech market ($bn) $100 00bn bn unsecured consumer loans outstanding Actuals Forecast with 7% CAGR expected in Brazil and Mexico $160 142 142 $140 127 127 802 802 $120 113 113 100 100 648 648 $100 89 89 79 79 $80 70 70 $60 303 303 $40 $20 $0 2008 2017 2022 2016 2017 2018 2019 2020 2021 2022 Sources : Statista, E&Y survey (2017), Goldman Sachs Sources: EIU, Goldman Sachs, Central bank of Brazil, ID Finance  FinTec ech market t is rapidly dly growing ng in LatAm and expe pecte ted d to gener nerate te $40b 0bn n in the e next xt 10 years with trans nsaction n volumes es futur ture e CAGR of 12% 9

Digital Banks Poised to Revolutionise LatAm’s Banking Sector Uncompetitive banking services Demographic bonus Low competition: 5 banks controlling c. 80% bank Young, educated, tech-savvy and assets which results in the world’s third highest financially literate generation enters the borrowing costs period of greatest productivity Outdated technology: offline and bureaucratic business processes Technology Economic disruption recovery Key drivers of Internet and mobile penetration increases: Brazil Structural reforms, fiscal discipline, falling digital banking is the fourth-largest by number of smartphone nominal interest rates will unlock GDP growth users in the world (80 mln) during next 2 years growth in New distribution channel for financial services makes “branch” -banking obsolete Brazil and Mexico Underbanked Arising Mexican market population Only 14 bank branches per 100,000 inhabitants and only few small alternative >50% 0% Brazil & Mexico population is consumer lenders (Kueski, Kubo, Albo, underbanked Prestadero) cause strong demand in banking services Uncompe petit itiv ive e banking ng servic ices togeth ther er with incre rease se in mobile e penet netra rati tion n and growth th of popula lati tion n crea eate te strong ng opportunity tunity for FinTec ech companies nies to gain market et share from politi tically ly influe luenc nced ed incum umbe bent nts 10