Investor Presentation April 2017 0
Disclaimer NEITHER THIS DOCUMENT NOR ANY COPY HEREOF MAY BE SENT OR TAKEN OR TRANSMITTED INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR TO ANY U.S. PERSON. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S., CANADIAN, AUSTRALIAN OR JAPANESE SECURITIES LAWS. THIS DOCUMENT IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO PURCHASE, ANY SECURITIES. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by 4finance Holding (“ 4finance") for use as an investor presentation and does not constitute a recommendation regarding securities of 4finance. While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forecasts, opinions and expectations contained herein, are fair and reasonable, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither 4finance nor any of 4finance`s advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this document, which neither 4finance nor its advisors are under an obligation to update, revise or affirm. The distribution of this presentation in certain jurisdictions may be restricted by law. Persons into whose possession this presentation comes are required to inform themselves about and to observe any such restrictions. In particular, this presentation may not be distributed into the United States, Australia, Japan or Canada. The following information contains, or may be deemed to contain, “forward -looking statements” . These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause 4 finance’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this presentation are based on information presently available to management and 4finance assumes no obligation to update any forward-looking statements. This presentation constitutes neither an offer to sell nor a solicitation to buy any securities in the United States, Germany, Canada, Australia, Japan or any other jurisdiction. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. In particular, this presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of 4finance in the United States. Securities of 4finance may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. 4finance does not intend to conduct a public offering or any placement of securities in the United States. 1
Table of contents 1. Introduction to 4finance 2. Lending Process 3. Loan Portfolio 4. Financial Review 5. Strategy and Outlook 6. Appendices 2
Introduction to 4finance 3
4finance: a leader in responsible online/mobile consumer lending Putting our customers first, providing a convenient and transparent service using cutting edge data-driven technology Revenue Growth (in millions of EUR) 31% 31 24% 15% 15% 21% 394 2.6x 2016 return on 2016 revenue 2016 Adjusted 2016 profit 149 before tax average equity growth EBITDA growth margin 2013 2016 16 16 9 83% >3,50 3,500 Adjusted EBITDA (in millions of EUR) 137 2016 returning Countries of Leading market 2016 full time customer operation (1) employees (2) 2.0x positions business (3) 71 2013 2016 Notes: (1) Includes Friendly Finance (2) Including Friendly Finance and TBI Bank 4 (3) Issuance volumes to online customers who have returned, ie taken out and repaid at least one prior loan
Geographic diversification 2016 Revenue: EUR 393m TBI Latvia FF 5% 11% 4% Other LatAm: Lithuania 3% 3 countries Czech Republic 5% c.175m people 4% Finland 6% Spain 14% Sweden 6% Europe: 13 countries c.120m people Denmark 9% Poland Georgia 24% 9% 5
Online/mobile customer profile Issuance by customer type (2016) Most common customer characteristics: 17% to new 83% to • Has a bank account • Uses financing for customers returning customers lifestyle choices or 1 • Expenditure matches necessities loan monthly income 4 and more • 83% of loans are issued loans 2 • Underserved by to returning customers loans traditional banks (2016) 3 loans Client split by age (2016) Applications by source (2016) 25% 8% 18% 18% 17% Desktop 12% Mobile 6% 37% 4% 55% Other 18-20 21-24 25-29 30-39 40-49 50-59 60+ 6
Clear and simple online product structure Single payment loan Instalment loan Line of credit % in portfolio (1) 69.8% 29.2% 1.0% • EUR 5 – 2,120 • EUR 50 – 3,182 • Limit up to EUR 2,100 Loan amount • Up to 35 days • Up to 24 months • Open-ended revolving credit line Term • 318 EUR • 772 EUR • 1,804 EUR Average loan size (2) • Minimum monthly repayment (MRP) • Monthly interest payments • Single fee payable at maturity • First withdrawal for free Pricing • Repayment in multiple instalments • Further withdrawals: 11% of amount • Monthly interest rate: • Monthly interest rate: • Nominal annual interest rate: 58% – 96% (3) Fee amount 6% – 28% in Europe; 30%-40% in LatAm (3) 8.5%-10.0% • Flexible payment options as long as MRP • Option to reset scheduled repayment by a • Option to extend up to 30 days is met month Extension • Extension fee payable before extension • Customers can change their repayment • Extension fee payable before extension date • Latvia, Lithuania, Finland, Sweden, • Latvia, Lithuania, Sweden, Poland, Poland, Denmark, Georgia, Spain, the • Finland, Latvia Czech Republic, Bulgaria, Romania, Denmark, Armenia, Spain, Romania, the Markets Argentina, Mexico, Dominican Republic, Czech Republic Slovakia • Websites (mobile/tablet/web) • Websites (mobile/tablet/web) • Apple & Android native apps (servicing • Apple & Android native apps Distribution channels only) • Phone call and SMS • Call centre, e-mail, webchat and SMS • Offline: agents, loan shops and other partners (servicing only) (1) Performing online loan portfolio as of 31/12/2016 7 (2) Average size of loan issued (for Single Payment loan and Instalment loan) and average outstanding balance for Line of credit, data on 31/12/2016 (3) Max term and max loan amount pricing
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