This presentation contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance of Ferratum. Such statements are based on the current expectations and certain assumptions of Ferratum’s management, of which many are bey ond the Ferratum’s control. The words "aim", "anticipate", "assume", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "plan", "potential", "predict" "projected", "risk", "should", "will" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. 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 forward-looking statements, possibly to a material degree. All forward-looking statements included herein are based on information presently available to Ferratum and, accordingly, Ferratum assumes no obligation to update any forward-looking statements, unless obligated to do so pursuant to an applicable law or regulation. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Ferratum or otherwise to engage in any investment activity. 2 FE-Classification: General\Anyone
Founded in Helsinki (2005) by CEO and largest shareholder Jorma Jokela (~55%), Mobile lender and mobile bank with deposit • business Lending in 23 countries on 6 continents • Three main business lines • Frankfurt Stock Exchange Prime Standard Full EU Banking Licence, enabling deposit taking for optimizing cost of capital 4 FE-Classification: General\Anyone
MB next generation Prime Loan Mobile Bank SME Lending IPO EU Banking Licence Product Geographic Diversification Mobile Expansion Concept FIN SWE LAT POL DEN GBR GER CAN BRA BGD MLT LIT ROM EST CRO NIG BUL NOR ESP CZE NZL MEX AUS NED 5 FE-Classification: General\Anyone
LOW LOAN AMOUN MOUNT HIGH All products are based on the same principles: Full digital setup and high user convenience, PRODUCT: SOLU LUTI TION: real-time, paperless LONG SME SME – Business loan offering for small and medium size companies Primel eloan an Prim imeloan an - strategic product for entering larger mass segments, launched already in TURITY four countries MATU Credit Limit Credi dit t Limit it and d PlusLoan sLoan continue to be the main components of revenue PlusLoan an Micro rolo loan an strategically utilized primarily as a product to enter new markets, share is being reduced in established SHORT markets Microloan HIGH APR APR LOW Credit Limit currently main revenue contributor, followed by PlusLoan and SME. Currently small share with Microloan and Primeloan. 6 FE-Classification: General\Anyone
Our typical Ferratum customer is: Employed or self-employed • Between 31 to 50 years young • Lives with a spouse and children • Based on 2018 data 7 FE-Classification: General\Anyone
Revenue shares of Credit Limit and SME continue to grow, representing together 63% of all revenues (H1 2018 57%) Average Average Revenue 6M Revenues by Active Products Loan Comments Loan Value Share Product (€,000) Markets Term Primeloan 2018 400 Primeloan: (incl. Mobile Bank) +309% y-o-y €6,751 5.5 years 1.1% 4 (4) Sweden launched in April • €3,000 – €20,000 / 2019 1,637 Latvia launched in May • 1 – 10 years Revenue growth driven by new customers and • Business (SMEs) 2018 10,445 recurring revenue 8.9% +24% y-o-y Up to €250,000 / €13,800 434 days 9 Invoice finance product being piloted in Poland • 2019 6 – 24 Month term 13,004 Credit Limit 2018 60,040 54.1% Up to €3,000 / €1,301 N/A +31% y-o-y 10 Credit Limit remaining main revenue driver • Digital revolving credit line 2019 78,720 PlusLoan 22.6% 2018 32,178 €300 – €5,000 / €774 358 days 9 Stricter scoring in selected markets contributed • +2% y-o-y 2 – 36 month term to moderate sales growth 2019 32,874 Microloan Discontinued in Czech Republic and Australia • 13.3% €25 – €1,000 / €216 29 days 11 2018 21,169 Revenues and geographies further decreased • 7 – 90 day term -8 % y-o-y as per strategy 2019 19,379 8 FE-Classification: General\Anyone
Data gathering and analysis Real-time credit Digital marketing risk scoring Technology Automated pay- Digital in & pay-out onboarding Entrepreneurial spirit and calculated risk-taking culture Unique regulatory expertise globally 9 FE-Classification: General\Anyone
Vision Mission “We have always strived to offer our customers the fastest, easiest and “We strive to offer everyone globally value beyond money through most convenient loans. Now, we bring this vision beyond lending and fastest, easiest and best customer experience” into the whole financial field. To achieve this, we ensure the best possible customer experience, use and develop scalable technology, continue to build unique scoring and utilize world class data” 10 FE-Classification: General\Anyone
Most valued Financial Platform Horizon III Revenue & adding value Most valued Mobile Wallet • by attracting ecosystem partners Growth through start-ups & ventures • Horizon II Most valued Lender • Partnerships and joint ventures • Asset-light model • Horizon I • Simplify & digitize further • Execute growth initiatives • Scalability & impact 11 FE-Classification: General\Anyone
Traditional banks 30 mins Current account, Virtual card, self-selected Loan Identification Day 3 PIN Day 4+ application ~ in minutes process Day 2 >4 days Digital Credit check Consultation, Credit Credit Wallet data 3-6 approval Loan in use capture signatures, payout Salary bank statement, statements, expenditure ID account Welcome letter 30 mins Current Day 4 account >7 days Day 7+ Day opening Day 2 7 process Consultation, Day 5 6-12 signa- Account Account PIN in tures, ID/KYC open fully mailbox in system operational Card in mailbox 12 FE-Classification: General\Anyone
Benefits for customers Benefits for Ferratum Modern banking Accessing all services to use services from one money securely place globally Helping to save Increasing and prosper Support when activity & loyalty and where there is a need for Decreasing cost extra money of funding Ferratum revenue source 13 FE-Classification: General\Anyone
Direct Linking 24 million visits Seamlessly integrated, open accounts for all potential customers 14 FE-Classification: General\Anyone
Commission Risk free revenue profit New Customer customer retention segments 15 FE-Classification: General\Anyone
▪ Revenue growth with 17.2%, main growth drivers Credit Limit EUR, 000 H1 2019 H1 2018* % Change and SME Revenue 145,613 124,232 +17.2% ▪ Sound profitability: EBIT grew with 23.8 %, EBT with 51.7% y-o-y Other income 11 16 -33.5% ▪ Improved profitability based on (54,335) (42,162) Impairment of loans +28.9% increased cost discipline • Selling & marketing expenses (20,698) (19,734) +4.9% improved operating leverage • Total other operating expenses (13,936) (14,442) -3.5% more focused marketing • EBIT 20,546 16,59 591 +23.8% less FX impact • Net financial costs (8,145) (8,416) -3.2% ▪ Stable tax ratio with 15% EBT 12,40 401 8,175 75 +51.7% ▪ Improving impairment of loans ratio in H1 2019: after 39.2% (1,861) (1,227) Income tax +15.0% impairments over revenues in Q1 2019, Q2 resulted in 35.4% Net profit 10,540 6,948 +51.7% Earning per share, basic (EUR) 0.49 0.32 +53.1% Earning per share, diluted (EUR) 0.49 0.32 +53.1% * restated 17 FE-Classification: General\Anyone
EUR millions 80 73.2 72.0 72.4 70 66.0 62.8 61.4 60 50 40 30 20 12.5 10.8 10.1 9.7 8.8 6.5 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Revenue EBIT * Q1-Q3 2018 restated 18 FE-Classification: General\Anyone
Impairments as % of revenues were at around 30-35% annually in the last years. Impairments on loans in % of the Credit Portfolio provide a better view on our risk and scoring model and show a decreasing trend reflecting our strategic product transition. Impairments / revenue Impairments / net AR 39% 37% 48% 35% 47% 34% 46% 34% 32% 31% 31% 30% 29% 33% 33% 32% 31% 29% 28% 26% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12019 Q2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Q1 Q2 19 FE-Classification: General\Anyone
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