Slide 1: Investor Presentation 2019Q3 Results
INVESTOR PRESENTATION 2019Q3 RESULTS November, 2019
Slide 2: Disclaimer
DISCLAIMER This presentation is of selective nature and is made to provide an overview of the Company’s (SIA “ExpressCredit” and its subsidiaries) business, based on 2019 Q2 results. Unless stated otherwise, this presentation shows information from consolidated perspective. Facts and information use
Slide 3: Business Profile, Brands, Values
BUSINESS PROFILE: BRANDS: VALUES: Simplicity 3rd largest non bank consumer lender Pawn loans Accessibility in Latvia* Consumer loans Respect Progress GROUP: KEY FINANCIALS: 89 branches 29.5 mEUR net loan portfolio (2019Q3) 270+ employees 5.8 mEUR EBITDA 2009 2017 3 306 000+ loan issue (2019Q3 cumula
Slide 4: Highlights
HIGHLIGHTS 12.5 12.5 2.1 29.5 11.0 10.6 In 2019Q3, Group has increased issuance 10.2 23.7 level by 22% compared to 2018Q3. 20.2 20.8 19.0 1.9 1.9 1.8 1.8 Average loan size per customer has increased to record amount of € 633. 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018
Slide 5: Market Overview: Consumer Loans
MARKET OVERVIEW: CONSUMER LOANS Consumer loan portfolio in EUR million as at 2017 and 2018, Industry* and ExpressCredit group comparison. Growth ExpressCredit* grows 17.2% 285 Growth 17 faster than the industry, 243 31.0% having 6%** market 13 share. Industry ExpressCredit Amount of consumer loans i
Slide 6: Market Overview: Pawn Loans
MARKET OVERVIEW: PAWN LOANS Pawn loan portfolio in EUR million in 2017 and 2018, Industry* and ExpressCredit comparison. In 2018 40% of all pawn 6.6 6.5 loans issued in Latvia 1.9 2.1 were issued by ExpressCredit. Industry ExpressCredit The market share is Amount of pawn loans issued in EUR million
Slide 7: Consumer Loans
CONSUMER LOANS 62% of loans issued by value in 2019Q3 6.2 2018Q3 16.1 6.9 2018Q4 17.1 6.3 LOANS ISSUED, mEUR 2019Q1 17.7 NET LOAN PORTFOLIO*, mEUR 8.2 2019Q2 21.0 * Loan portfolio data based on ExpressCredit group net consumer loan portfolio incl. 7.8 accrued interest. 2019Q3 22.6
Slide 8: Consumer Loans
CONSUMER LOANS Average loan tranche Average loan size per Weighted average term Non-performing loans ratio size per issue customer of loans issued € 227 € 633 516 days 5.5% 4.7% € 198 € 452 325 days 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018Q3 2018Q4 2019Q1 2019Q2 201
Slide 9: Pawn Loans
PAWN LOANS 38% of loans issued by value in 2019Q3 3.9 2018Q3 1.9 4.1 2018Q4 2.1 4.3 LOANS ISSUED, mEUR 2019Q1 2.1 NET LOAN PORTFOLIO, mEUR* 4.4 2019Q2 * Includes car title loan and mortgage loan legacy portfolios 2.0 4.7 2019Q3 2.3
Slide 10: Pawn Loans
PAWN LOANS Average loan size Pawn mark-up: Redemption rate* per issue: € 65 Stable customer base and 40% 43% stable performance of 76% pawnshop operations. € 59 72% 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 * Items begin redeemed or exte
Slide 11: Key Financials
KEY FINANCIALS 15.1 Cash inflow 13.6 Cash outflow 11.3 10.3 12.5 9.2 In line with historical Q3 pattern, also 10.2 2019Q3 delivered increased net cash flow. 8.5 8.3 6.6 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3
Slide 12: Financials
FINANCIALS 37% 40% 40% 36% 33% 2.1 1.9 1.9 3.9 3.8 1.8 1.8 3.0 3.5 2.7 2.3 2.5 2.3 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2015A 2016A 2017A 2018A EBITDA, mEUR EBITDA margin Net Debt/EBITDA ratio Net Debt/Equity ratio
Slide 13: Key Financials: Profitability
Income statement, EUR’000 2018Q3 2019Q3 %, y-o-y Interest and similar income 11 039 12 082 9% Gross profit from sale of goods* 1 125 1 324 18% KEY FINANCIALS: Cession result** -353 -1 039 194% PROFITABILITY Gross profit 11 811 12 367 5% Selling expense -4 433 -4 076 -8% Increased cession result corr
Slide 14: Key Financials: Balance
Balance sheet, EUR’000 2019Q2 2019Q3 %, q-o-q Fixed and intangible assets 622 774 24% Loans to related parties 1 085 1 216 12% Net loan portfolio 26 609 29 474 11% KEY FINANCIALS: Inventory and scrap 1 173 1 231 5% BALANCE Other assets 560 412 -26% Cash 469 1 296 176% The portfolio increase was fina
Slide 15: Financing Structure
2019Q2, 2019Q3, Interest rate, Interest-bearing debt Maturity EUR’000* EUR’000* % Unsecured bonds 2 625 2 188 15.0% 2022/12 FINANCING Unsecured notes 4 996 4 996 14.0% 2021/10 STRUCTURE Peer-to-peer lending platform 14 648 17 520 9% - 13.5% According to issued loans Diversified financing structure w
Slide 16: Ltd. ExpressCredit contact details
Ltd. “ExpressCredit” Raunas iela 44 k-1 Riga, Latvia LV-1039 kristaps.bergmanis@expresscredit.lv +371 66 15 50 06