Home Credit Presentation of 2017 results 7 March 2018 Disclaimer - PowerPoint PPT Presentation

Home Credit Presentation of 2017 results 7 March 2018

Disclaimer This presentation has been prepared solely for informational purposes and shall not be considered as an offer to sell or the solicitation of an offer to buy, subscribe for or otherwise acquire any securities of or obtain lending services from Home Credit B.V., PPF Group N .V. or any of their affiliates in any jurisdiction and shall not be treated as any investment advice or recommendation. This presentation is not directed to, or intended for distribution or use, w here it is prohibited by operation of law. The presentation does not take into account, in any way whatsoever, the investm ent objectives, financial situation or specific needs of its recipients. This presentation and its contents may not be copied or disseminated, in part or as a w hole, without prior written consent of Home Credit B.V. Information and opinions presented in this presentation m ay have been obtained or derived fromvarious sources w hich are believed by H ome Credit B.V. to be reliable but such information has not beenverified by Home Credit B.V. Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of applicable members of m anagement. Those management members believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete. Where this presentation quotes any information or statistics from any external source, it should not be interpreted that Home Credit B.V. has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements. These statements reflect the Home Credit B.V.’s current knowledge and its expectations and projections about future events and may be identified by the context of such statem ents or words such as “anticipate,” “believe”, “estimate”, “expect”, “intend”, “plan”, “project”, “target”, “may”, “will”, “would”, “could” or “should” or similar terminology. By their nature, forward-looking statem ents are subject to a number of risks and uncertainties, many of w hich are beyond the Home Credit B.V.’s control that could cause the actual results and performance to differ materially from any expected future results or performance expressed or implied by any forward-looking statements. No representation or warranty whatsoever, express or implied, is made as to the accuracy, completeness, consistency or the reliability of the information contained in this document and nothing contained in this presentation is, or should be relied upon as, a promise or representation. We accept no liability for loss arising from the use of any information or acting on any opinion contained in this document. We retain the right to change the contents of this presentation at any time without notice. Neither Home Credit B.V. or any other person is under any obligation to update or keep current the information contained in this presentation or to correct any inaccuracies in any such information which may become apparent or to provide you with any additional information. None of its directors, officers, employees, direct or indirect shareholders, agents, affiliates, advisors or any other person accept any responsibility, liability or duty of care whatsoever for thecontents of this presentation, and no representation or warranty, express or implied, is made by any such person in relation to the contents of this presentation. The numbers in this presentation are largely taken from the audited consolidatedIFRS statements of Home Credit B.V. In the interest of comparability certain number of PT. Home Credit Indonesia arepro-forma For more information on Home Credit Group, please visit www.homecredit.net.

Consumer finance leader in growth markets Highlights Total net loans as at YE 2017: € 15.5bn • HC has experienced high growth rates in its key regions: Rest CIS Other Asia 3% CN: Strong incr ease in total bal ance; regul atory changes i ntroduced i n 5% 9% 4Q 2017 leading to lower profitability in short-term but more attractive CZ & SK Consumer market environment in long-term; 9% durables VN : Growing and profitable market; strong and stable position in consumer loans durables financing with market share above 50%; 36% Cash China IN : Rapid expansion setting up for a good trajectory to break-even; loans Russia 63% 59% ID : Broke even and reported a first profitable month in December 2017; 16% PH : Broke even and reported a first profitable year in 2017; RU : Solid performance in 2017 (fully recovered from crisis) confirmed by Ratios annualized where applicable. Long-Term Default Rating upgraded by Fitch to BB-/outlook stable; Key metrics and business mix (€) KZ: Exceptional sales performance in 2017 (76% Y-o-Y increase); CZ : Mature businesses with focus on innovation startups; 2015 2016 2017 US : Second phase – HC credit card business: co- branded credit card and Deposits (bn) 4.9 5.4 6.4 the first loyalty program in US telco business – started in 3Q 2017; Gross loans (bn) 6.6 10.7 16.9 • Number 1 in point-of-sale lending in most of markets Equity (bn) 1.2 1.5 2.0 • Multichannel customer-centric distribution with 399 thousand distribution points Net income (m) (41.6) 210.2 243.8 and substantial online presence Net interest margin 15.6% 14.0% 14.7% • 29.9m customers and 158 thousand employees Cost of risk 13.2% 7.6% 8.9% • Global footprint covering 10 countries with population of 3.5bn RoAE (3.3%) 16.2% 14.5% • Leading-edge risk management leveraging big data and biometrics # of distribution points (000) 186 271 399 • Strong and diversified funding # of active customers (m) 12.5 20.1 29.9 1

Meeting Agenda 1. STRATEGY AND BUSINESS 2. SUMMARY BY COUNTRY 3. KEY FINANCIAL INDICATORS

Business highlights Customer-centric multichannel 1 distribution with strong cross-sell Responsible lending Leading positions 5 2 at the heart in attractive of our practices markets Strong and Leading-edge 4 3 diversified risk management funding 2

Multichannel distribution with strong cross-sell 1 1 Acquisition: POS and cash loan walk-in Cross-sell • Existing 97m customer database • 399 thousand distribution points (POS, branches) • Up to 63% of customers eligible for cross-sell within 18 • 300 e-shop agreements Distribution Distribution months • Own websites and mobile apps • 15% to 20% of customers take either cash loan or • Call centres credit card within 36 months Consumer Cash loan Cash loan Credit cards durables loan Electronics, white General purpose Purpose General purpose General purpose Purpose Products goods, two-wheelers Products Average amount €2,036 €1,119 Average amount €321 €686 Average term 35 months N/A Average term 11 months 17 months 8,9 11,2 Volumes Volumes 4,5 6,5 disbursed disbursed 3,8 2,4 (€bn) (€bn) 2015 2016 2017 2015 2016 2017 * Average credit limit per active credit card 3

Expanding offline footprint and customer base... 1 1 Number of POS (‘000) 399 43 14 271 19 186 16 238 166 145 11 7 141 112 6 19 18 63 38 16 2 24 19 14 103 104 99 93 94 77 2012 2013 2014 2015 2016 2017 Russia China Other(1) Asia Active 6.8 8.4 9.1 12.5 20.1 29.9 clients (m) Home Credit helps retailers increase their sales and revenues by making loans easily accessible Cooperation with Home Credit also works with electronics manufacturers (Samsung, OPPO, Huawei, etc.) to partners supporttheir marketing efforts 4 1 ”Other” includes Czech Republic, Slovakia, Belarus, Kazakhstan

…and growing in Online 1 1 Volume disbursed (€m) Mobile apps – active users ratio 40% 531 456 30% 29% 375 20% 21% 15% 10% 2017 Q2 2017 Q3 2017 Q4 0% 2017 Q2 2017 Q3 2017 Q4 • Q-o-Q Sales increased by 42% (Q2 to Q4) CN CZ RU VN IN ID PH KZ Total • The main driver of the increase in the volume disbursed has been the Cash Loan process initiated from the mobile app in China (€171.1m in Q4) Social Media followers: 5,726,369 5

Leading-edge risk management 3 Key aspects of risk management Strong risk performance NPL 117% 106% 116% 128% 122% • Highly automated process: 6.3m applications per month coverage • Paperless applications: roll-out progressing • Systematic leveraging of big data 17,8% 16,7% • Proprietary customer database: 97m customers 15,3% • Anti-fraud prevention using biometric measures 13,2% 12,2% • Over 80 scoring models 10,0% • 22 thousand collections FTEs; 92.8% collections efficiency (1) 8,9% 7,6% • Customer-focused risk assessment: median time-to-yes is just 6,9% 6,1% above one minute • Risk-based pricing introduced progressively 2013 2014 2015 2016 2017 1 (1 – (Gross loans DPD 31-120 in current month / Gross loans DPD 0-90 in previous month)) Cost of risk (2) NPL ratio (3) 2 Impairment losses / Average net loans 3 End of period gross loans >90dpd / Total end-of-period gross loans 6