2017 Highlights & 2018 Outlook · Strategy Execution ... Funding diversification: ... Cooperation...

2017 Highlights & 2018 Outlook

INNOVATION LEADER

BIG INNOVATION AWARD

2017

BEST LENDING PLATFORM

BENZINGA GLOBAL FINTECH AWARDS, FINALIST

2017

FASTEST GROWING ALTERNATIVE FINANCE COMPANY EUROPE 2017

GLOBAL BANKING & FINANCE REVIEW MAGAZINE

2017

BEST ALTERNATIVE FINANCE COMPANY

EUROPEAN FINTECH PUBLIC AWARDS

2016

EUROPE TOP 100: WINNER «FINANCE»

RED HERRING

2016

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

3

Strategy Execution - Geography:

⎼ Brazil and Mexico became fully operational

⎼ Europe & LatAm share 21% vs 12% in 2016

Strategy Execution - Product:

⎼ Longer-term products were launched in KZ, RU and ES

⎼ Solva scaled in GE

⎼ Insurance product was successfully launched with run rate c. 1$m annual in net profits

⎼ IL share: 43% vs 20% in 2016

Funding diversification:

⎼ $60m+ raised for 2017 with GEL added into the portfolio

⎼ Public bond ($8.7m) was issued in Russia

⎼ Cooperation with Mintos is growing ($3.7m debt eop)

Operational:

⎼ Data Science and Analytics department was established to optimize costs and generate net profits

⎼ More financial licenses obtained to fuel further growth

Financials:

⎼ Net profit $12m

⎼ MM.ru $7.2m and MM.kz – $9.5m

⎼ 63% return on Equity

STRONG YEAR PROVING STRATEGIC LATAM FOCUS

ID Finance – 2017 Highlights

Net loan portfolio ($m)Highlights

Financial highlights

$92$65,1

$6,3

$197

$123

$12,00

50

100

150

200

250

300

Loans issued, $m Revenue, $m Profit after tax, $m

2016

2017

Change 2017 vs. 2016

+114%

+89%

+91%

$148

$3,7$11,9

$39,6

$77,3

0

20

40

60

80

100

120

140

160

2014 2015 2016 2017 2018E

Actuals Forecast

4

1% 9%

12%

16%

19%

43%

1%4%9%

10%

23%

53%

ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH

Portfolio Quality

Historical group NPL* rates Historical group level of NPLs*

$16.5m

$193m $176m

* Loans with payments overdue 90+ days are considered non-performing loans (NPLs)

$341m $316m

$25,5m

$0m

$50m

$100m

$150m

$200m

$250m

$300m

$350m

$400m

Loans issued since launch NPL as of Dec-17 Repaid and performing loansDec-17

43,3%

23,5%

14,6%12,1%

9,7% 10,1% 11,2% 10,6% 10,1%7,5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017

Net outstanding portfolio (December 2017) Revenue structure (2017 FY)

Net portfolio$77.3m

Revenue$123m

MexicoRussia Kazakhstan Georgia Spain Poland Brazil

5

43% 49%

21%32%

57% 51%

79%68%

2017 2018 2017 2018


⎼ Brazil: reach break-even on a monthly basis

⎼ Mexico: reach positive unit economics

⎼ Colombia: launch

⎼ Grow LatAm and Europe share to 32%


⎼ Ground work for credit card product in Brazil

⎼ Introduce other products that would generate risk free commission income

⎼ Grow share of longer-term products to 50%

Finance & Funding:

⎼ Prepare audited financial statements for 2015-2017

⎼ Add at least 1 international fund

⎼ Participate in the public debt markets

⎼ Reduce FX risk

⎼ Optimize Group taxes that would have material positive effect on the bottom line

CIS remains P&L driver:

⎼ CIS: profit after tax $35m

FOCUS ON LATAM AND LONGER-TEMR PRODUCTS

ID Finance – 2018 Outlook

Loans issued structure

Financial highlights

Highlights

+6pp

+11pp

CIS Non-CISSPL IL

$197$123,3

$12,0

$440

$256

$30,40

100

200

300

400

500

600

700

Loans issued, $m Revenue, $m Profit after tax, $m

2017

2018

Change 2018 vs. 2017

+123%

+97%

+152%

6

Group 2017 Results And 2018 Year Outlook

Loans issued ($m) dynamics Revenue ($m) dynamics

Profit after tax ($m) dynamicsGroup equity ($m) and return on equity (%)

$440

$14$36

$92

$197

0

50

100

150

200

250

300

350

400

450

500

2014 2015 2016 2017 2018E

123% 2017-18

144% 2014-17CAGR

$256

$5$20

$65

$123

0

50

100

150

200

250

300

2014 2015 2016 2017 E2018

$30

-$0,7$1,4

$6,3

$12,0

-5

0

5

10

15

20

25

30

35

2014 2015 2016 2017 2018E

56% 2016-18 CAGR

$47

$0,4

$5,9

$13,5

$24,6

45%

65%

63% 84%

0%

20%

40%

60%

80%

100%

120%

0

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017 2018E

Equity, $m RoAE (right scale)

108% 2017-18

185% 2014-17CAGR

Actuals Forecast

7

20%80%

12%

88%

FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND LATAM MARKETS

Product And Geography Diversification

4%

27%68%

1%20%

79%

E2018 full year2017 full year

Share of European and

LatAm21%

Share of European

and LatAm32%

2016 full year

Share of European and

LatAm12%

Geography diversification 2016-2018. Loans issued

49%51%

Share of long-term

loans 49%

43%57%

Share of long-term

loans20%

Share of long-term

loans 43%

Product diversification 2016-2018. Loans issued

E2018 full year2017 full year2016 full year

Russia and CIS AmericasEurope

Single payment loans Instalment loans

8

49%

40%

11%

RUB54%USD

30%

EUR15%

GEL1%

Bond issuance – raised RUB 500m ($8.7m) in Dec-17

Cooperation with Mintos – total debt $3.7m: GEL 2.3m

($0.9m) and EUR 2.3m ($2.8m)

Total Group debt portfolio - $76m, including $37m from

credit funds, HNWI, bonds and banks and $30m from

individuals and $8.7m from bonds

$18m of additional funding available from banks and

funds

12 288

7 6078 296

12 048

4 298

8 519 8 184

6 172

0 0 0

8 843

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

FUNDING LATAM AND LONGER-TERM PRODUCT EXPANSION

ID Finance – Funding Strategy

Funding highlights Debt portfolio. Currency breakdown

Non-bank debt funding** raised in cash ($k) Debt portfolio. Source breakdown

Debt portfolio is well-balanced in terms of maturity.

The latest scheduled payment is in Q4 2020

Debt portfolio is well-diversified in terms of currency

$76m

$76m

Credit funds

Bonds

Individual investors

9

Summary Financial PerformanceSTRONGEST ANNUAL PERFORMANCE TO DATE, X2 IN NET EARNINGS

GROUP 2015 2016 2016 vs 2015 2017 2017 vs

2016 2018F 2018 vs 2017

P&LLoans issued $ 000 35 915 92 273 157% 197 376 114% 439 950 123%Instalment loans $ 000 4 579 18 696 84 848 217 054Single payment loans $ 000 31 336 73 577 112 528 222 896Loans issued # 189 804 452 073 138% 801 195 77% 1 721 547 115%Net loan portfolio $ 000 11 891 39 622 233% 77 301 95% 148 218 92%

Revenue $ 000 19 775 65 101 229% 123 284 89% 256 069 108%Provision charge $ 000 -7 088 -34 569 -69 648 -142 192Net profit after reserves $ 000 12 687 30 532 141% 53 636 76% 113 877 112%%revenue % 64% 47% 44% 44%Operating expenses $ 000 -5 728 -15 563 -30 305 -58 644Total Operating Income $ 000 6 959 14 969 115% 23 330 62% 55 233 128%%revenue % 35% 23% 19% 22%Administrative expenses $ 000 -2 917 -5 819 -9 770 -17 936EBITDA $ 000 5 591 13 197 136% 22 339 69% 50 735 127%%revenue % 28% 20% 18% 20%Profit before tax $ 000 2 154 7 373 242% 14 701 99% 36 523 148%%revenue % 11% 11% 12% 14%Profit after tax $ 000 1 437 6 303 339% 12 026 91% 30 362 152%%revenue % 7% 10% 10% 12%

10

ID FINANCE DELIVERS STRONG PERFORMANCE, WITH PROFITS AFTER TAX OF $12m in 2017

Summary Financial Performance 2017

GROUP P&L 2017 TOTAL Business Dev costs Russia Kazakhstan Georgia Spain Poland Brazil

Loans issued $ 000 197 376 0 92 894 40 098 22 816 21 817 17 282 2 333 Instalment loans $ 000 84 848 0 34 926 2 464 22 359 9 898 12 732 2 333 Single payment loans $ 000 112 528 0 57 968 37 634 457 11 920 4 550 0

Loans issued # # 801 195 0 418 515 216 500 45 634 62 538 47 331 9 971 Net loan portfolio $ 000 77 301 0 32 993 14 863 12 630 9 128 6 554 1 132

Revenue $ 000 123 284 0 66 132 28 173 10 373 11 193 4 906 2 507 Provision charge $ 000 -69 648 0 -41 968 -12 312 -6 392 -5 455 -1 294 -2 227 Revenue after provision charge $ 000 53 636 0 24 163 15 861 3 981 5 738 3 612 280

%revenue % 43.5% 0% 37% 56% 38% 51% 74% 11%Operating expenses $ 000 -30 305 -1 144 -13 660 -3 938 -3 940 -3 958 -2 919 -747 Total Operating Income $ 000 23 330 -1 144 10 503 11 924 41 1 780 693 -467

%revenue % 19% 0% 16% 42% 0% 16% 14% -19%Administrative expenses $ 000 -9 770 -2 655 -2 679 -1 081 -656 -883 -700 -1 117 EBITDA $ 000 22 339 -2 928 11 989 11 495 1 503 1 365 425 -1 510

%revenue % 18.1% 0% 18.1% 40.8% 14.5% 12.2% 8.7% -60.2%Profit before tax $ 000 14 701 -2 995 7 687 10 781 -1 140 1 073 661 -1 365

%revenue % 11.9% 0% 11.6% 38.3% -11.0% 9.6% 13.5% -54.5%Profit after tax $ 000 12 026 -2 995 7 174 9 492 -1 437 820 396 -1 425

%revenue % 9.8% 0% 10.8% 33.7% -13.9% 7.3% 8.1% -56.8%

11

ID FINANCE IS WELL POSTITIONED TO ACHIEVE PROFITS AFTER TAX OF $30.4m in 2018

Summary Financial Performance 2018

GROUP P&L 2018 TOTAL Business Dev costs Russia Kazakhstan Georgia Spain Poland Brazil Mexico

Loans issued $ 000 439 950 0 163 969 100 340 37 000 65 000 55 000 15 000 3 640 Instalment loans $ 000 217 054 0 64 948 20 392 37 000 28 731 47 343 15 000 3 640 Single payment loans $ 000 222 896 0 99 021 79 948 0 36 269 7 657 0 0

Loans issued # # 1 721 547 0 855 659 465 014 58 240 165 569 115 867 48 456 12 742 Net loan portfolio $ 000 148 218 0 55 202 30 192 19 827 22 099 17 469 3 033 396

Revenue $ 000 256 069 0 114 442 62 444 10 178 31 550 19 530 16 117 1 397 Provision charge $ 000 -142 192 0 -72 206 -29 804 -2 038 -15 300 -7 980 -13 867 -997 Revenue after provision charge $ 000 113 877 0 42 237 32 640 8 140 16 250 11 550 2 250 400

%revenue % 44% 0% 37% 52% 80% 52% 59% 14% 29%Operating expenses $ 000 -58 644 -396 -22 607 -10 186 -4 883 -10 031 -7 258 -2 563 -720 Total Operating Income $ 000 55 233 -396 19 630 22 454 3 257 6 219 4 292 -313 -320

%revenue % 22% 17% 36% 32% 20% 22% -2% -23%Administrative expenses $ 000 -17 936 -4 537 -4 026 -2 285 -255 -2 275 -1 694 -2 766 -870 EBITDA $ 000 50 735 -4 933 22 744 20 998 5 599 5 569 3 901 -2 799 -753

%revenue % 20% 19.9% 33.6% 55.0% 17.7% 20.0% -17% -54%Profit before tax $ 000 36 523 -4 933 15 604 20 169 3 002 3 944 3 008 -3 079 -1 190

%revenue % 14% 13.6% 32.3% 29.5% 12.5% 15.4% -19% -85%Profit after tax $ 000 30 362 -4 933 14 331 17 770 2 493 3 018 2 183 -3 183 -1 317

%revenue % 12% 12.5% 28.5% 24.5% 9.6% 11.2% -20% -94%

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

13

Key takeaways:

⎼ Country manager was hired

⎼ 1st online lender in Russia

⎼ 4th MFI by Expert RA in Russia

Funding:

⎼ Public bonds RUB 500m ($8.7m) wereissued


⎼ Solva.ru was successfully launched

⎼ Ammopay unit economics improved

Operational:

⎼ NPL stabilized at 8%

Financials:

⎼ Loans issued $93m (x2.6 Y-o-Y)

⎼ Revenue $66m (х2.8 Y-o-Y)

FOCUS ON SOLVA PERFORMANCE

Russia - Overview

2017 Highlights 2018 Strategic focus

Key takeaways:

⎼ Introduce reporting accounrding tobanking standards

⎼ Remain 1st online lender in Russia

⎼ Become TOP-3 MFI by Expert RA inRussia


⎼ Reach profitability for Solva.ru and scale

⎼ Reach profitability for Ammopay

Financials:

⎼ Loans issued $164m

⎼ Revenue $114m

⎼ Profit after tax $14m

14

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

Jul-14 Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Nov-17

Applications Approval rate (%)

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2 000

4 000

6 000

8 000

10 000

12 000


Amount issued ($k) Marketing cost (%)

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000


Number of unique local website visits Number of applications and approval rate1 2

Number of loans issued and loyalty rate Amount issued ($k) and marketing cost (%) 3 4

SIGNIFICANT GROWTH OF APPROVAL RATE AND AVERAGE LOAN

Russia – Client Acquisition Funnel

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

10 000

20 000

30 000

40 000

50 000

60 000


Number of loans issued Loyalty rate

+39%

2017 vs. 2016

+12%

2017 vs. 2016

+155%

2017 vs. 2016

+108%

2017 vs. 2016

Marketing cost:5% in 2017 vs 10% in 2016

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

16

Key takeaways:

⎼ Moneyman was significantly scaled

⎼ Moneyman became major Group incomegenerating unit

⎼ Moneyman became active market player: Fintech Association was founded


⎼ Solva.kz was successfully launched

Operational:


Financials:


⎼ Revenue $28m (+32% Y-o-Y)

FOCUS ON SOLVA PERFORMANCE

Kazakhstan - Overview


Key takeaways:

⎼ Cooperate with regulator in creating roadmaps for industry regulation


⎼ Reach profitability for Solva.kz and scale

Funding:

⎼ Introduce local funding

⎼ Start cooperation with Mintos to fundGroup needs

Financials:


⎼ Revenue $62m


17

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

5 000

10 000

15 000

20 000

25 000

30 000


Number of loans issued Loyalty rate (%)

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

1 000

2 000

3 000

4 000

5 000

6 000



0%

10%

20%

30%

40%

50%

60%

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000


Applications Aprroval rate (%)

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000




TOP PERFORMER FOR 2017 – KEY PROFIT DRIVER FOR THE GROUP

Kazakhstan – Client Acquisition Funnel

+136%

2017 vs. 2016

+68%

2017 vs. 2016

2017 vs. 2016

+88%

2017 vs. 2016

+144%

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

19

Key takeaways:

⎼ Moneyman was fully terminated

⎼ Launched legal collection of Moneymanportfolio


⎼ Solva.ge was scaled and reachedbreakeven

Funding:

⎼ Introduced Mintos funding ($1.3m debteop)

Operational:


Financials:


⎼ Revenue $10m

SCALING OPERATIONS

Georgia - Overview


Key takeaways:

⎼ Monetize Moneyman performancethrough legal collection


⎼ Stabilize and improve Solva.ge performance

Funding:

⎼ Develop cooperation with Mintos

⎼ Become self-funded to mitigate FX risk

Financials:


⎼ Revenue $10m

⎼ Profit after tax $2.5m

20

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17


0%

10%

20%

30%

40%

50%

60%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000



0%

2%

4%

6%

8%

10%

12%

14%

16%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000





MONEYMAN CEASED THE OPERATIONS. SOLVA EXPERIENCES RAPID GROWTH

Georgia – Client Acquisition Funnel

x16SOLVA

2017 vs. 2016

x8SOLVA

2017 vs. 2016

x21

SOLVA2017 vs. 2016

x30

SOLVA2017 vs. 2016

Marketing cost:2.6% in 2017 vs

5.2% in 2016

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

22

Key takeaways:

⎼ Reached breakeven

⎼ Became one of the major Group incomegenerating unit

⎼ Hired new local executives


⎼ Plazo.es was successfully launched

Funding:

⎼ Introduced Mintos funding ($2.4m debteop)

Operational:


Financials:


⎼ Revenue $11m (x3 Y-o-Y)

SCALING OPERATIONS

Spain - Overview


Key takeaways:

⎼ Keep newly hired team (local CEO, CFO, CMO, head of operations)

Strategy Execution - Georgraphy:

⎼ Establish Call Center in Mexico

⎼ Set up LatAm hub


⎼ Reach breakeven for Plazo.es

Funding:

⎼ Develop cooperation with Mintos

Financials:


⎼ Revenue $32m


23

Spain - Summary Financial PerformanceX3 YEAR TO YEAR GROWTH IN NET EARNINGS

ES 2015 2016 2016 vs 2015 2017 2017 vs 2016 2018F 2018 vs 2017P&L

Loans issued $ 000 1 307 6 384 388% 21 817 242% 65 000 198%Instalment loans $ 000 44 1 741 9 898 28 731Single payment loans $ 000 1 263 4 642 11 920 36 269Loans issued # 3 885 18 684 381% 62 538 235% 165 569 165%Net loan portfolio $ 000 473 2 502 429% 9 128 265% 22 099 142%

Revenue $ 000 681 3 506 415% 11 193 219% 31 550 182%Provision charge $ 000 -535 -1 465 -5 455 -15 300Net profit after reserves $ 000 146 2 041 1299% 5 738 181% 16 250 183%%revenue % 21% 58% 51% 52%Operating expenses $ 000 -71 -336 -3 958 -10 031Total Operating Income $ 000 74 1 705 2190% 1 780 4% 6 219 249%%revenue % 11% 49% 16% 20%Administrative expenses $ 000 -457 -1 477 -883 -2 275EBITDA $ 000 -311 554 -278% 1 365 146% 5 569 308%%revenue % -46% 16% 12% 18%Profit before tax $ 000 -382 224 -159% 1 073 378% 3 944 268%%revenue % -56% 6% 10% 12%Profit after tax $ 000 -407 213 -152% 820 284% 3 018 268%%revenue % -60% 6% 7% 10%

UNIT ECONOMICS (%ISSUANCE)Revenue % 52% 55% 2.8% 51% -3.6% 49% -2.8%Reserves % -41% -23% 18.0% -25% -2.1% -24% 1.5%

Revenue-reserves % 11% 32% 20.8% 26% -5.7% 25% -1.3%Opex % -5.5% -5.3% 0.2% -18% -12.9% -15% 2.7%

Admin % -35% -23% 11.8% -4.0% 19.1% -3.5% 0.5%Other % -1.9% -0.2% 1.7% -0.4% -0.1% -1.4% -1.1%

Net income % -31% 3.3% 34.5% 3.8% 0.4% 4.6% 0.9%

24

$3,0

-$0,4$0,2

$0,8

-1

-1

0

1

1

2

2

3

3

4

2015 2016 2017 2018E

SPAIN UNIT INCLUDES MONEYMAN ES

Spain 2017 Results And 2018 Year Outlook

Loans issued ($m) dynamics Revenue ($m) dynamics

Profit after tax ($m) dynamicsNet loan portfolio ($m) dynamics

$65

$1,3$6,4

$22

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018E

308% 2015-17CAGR

$22

$0,5$2,5

$9,1

0

5

10

15

20

25

2015 2016 2017 2018E

268%2017-18

198% 2017-18

$32

$0,7$3,5

$11

0

5

10

15

20

25

30

35

2015 2016 2017 2018E

305% 2015-17CAGR

182% 2017-18

Actuals Forecast

25

0

50 000

100 000

150 000

200 000

250 000

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-170%

5%

10%

15%

20%

25%

30%

35%

40%

0

5 000

10 000

15 000

20 000

25 000

30 000

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17


0%

10%

20%

30%

40%

50%

60%

70%

80%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000



0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

500

1 000

1 500

2 000

2 500

3 000





SPAIN IS A KEY DRIVER FOR EUROPEAN EXPANSION

Spain – Client Acquisition Funnel

+88%

2017 vs. 2016

x2

2017 vs. 2016

x3.4

2017 vs. 2016

x3.4

2017 vs. 2016

Marketing cost:6.8% in 2017 vs

7.2% in 2016

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

27

Key takeaways:

⎼ Reached breakeven

⎼ Country manager was hired

Operational:


Financials:


⎼ Revenue $4.9m (x5 Y-o-Y)

SCALING OPERATIONS AS BREAKEVEN IS MET

Poland - Overview


Key takeaways:

⎼ Strengthen the team

⎼ Scale profitably

Funding:

⎼ Introduce Zloty funding

Operational:

⎼ Concentrate on operating efficiency due to low margins

⎼ React to rapidly changing regulation

Financials:


⎼ Revenue $20m


28

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-170%

20%

40%

60%

80%

100%

120%

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17


0%

10%

20%

30%

40%

50%

60%

70%

0

1 000

2 000

3 000

4 000

5 000

6 000



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

500

1 000

1 500

2 000

2 500





POLAND REACHED BREAKEVEN AND BEGAN SCALING

Poland – Client Acquisition Funnel

X3

2017 vs. 2016

X2

2017 vs. 2016

X3.4

2017 vs. 2016

X2.5

2017 vs. 2016

ID FINANCE

RUSSIA

KAZAKHSTAN

GEORGIA

SPAIN

2

3

4

5

1

POLAND6

LATAM7

30


⎼ Brazil and Mexico became fully operational

⎼ Colombia country manager was hired

Operational:


Financials:

⎼ Loans issued $2.3m (x15 Y-o-Y)

⎼ Revenue $2.5m (x64 Y-o-Y)

SCALE AND REACH BREAKEVEN

LATAM - Overview



⎼ Scale Mexico

⎼ Launch Colombia


⎼ Ground work for credit card product

Operational:

⎼ Achieve profitability

⎼ Control NPL while scaling

⎼ Set up FIDIC structure for tax and funding purposes

Financials:


⎼ Revenue $16m

⎼ Profit after tax -$3.2m

31

0

20 000

40 000

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Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-170%

2%

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0%

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0%

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BRAZIL BECAME FULLY OPERATIONAL

Brazil – Client Acquisition Funnel

x33

2017 vs. 2016

x41

2017 vs. 2016

2017 vs. 2016

x14

2017 vs. 2016

x15

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Mexico - Summary Financial PerformanceRECENTLY LAUNCHED

Mexico P&L 2017 2018 2018 vs. 2017

Loans issued $ 000 136 3 640 x27Instalment loans $ 000 136 3 640 Single payment loans $ 000 0 0

Loans issued # # 706 12 742 x18Net loan portfolio $ 000 45 396 x9

Revenue $ 000 49 1 397 x28Provision charge $ 000 -94 -997Revenue after provision charge $ 000 -45 400

%loans issued % -33% 29%Operating expenses $ 000 -52 -720Total Operating Income $ 000 -97 -320

%revenue % -196% -23%Administrative expenses $ 000 -163 -615EBITDA $ 000 -253 -753

%revenue % -514.0% -54%Profit before tax $ 000 -299 -1 190

%revenue % -609.2% -85%Profit after tax $ 000 -299 -1 317

%revenue % -609.2% -94%

3333

Alexander DunaevCo-founder, COO @ ID Finance

[email protected]

Thank you for your attention!

Boris BatinCo-founder, CEO @ ID Finance

[email protected]

2017 Highlights & 2018 Outlook · Strategy Execution ... Funding diversification: ... Cooperation...

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