Slide 1: IFRS unaudited financial results – H1 2017
IFRS unaudited financial results – H1 2017 1 August 2017
Slide 2: Important Notice
Important Notice This presentation contains, or may be deemed looking statements. By their nature, Nothing in this presentation constitutes to contain, forward-looking statements. These forward-looking statements involve risks and investment advice and this presentation shall statements relate to fu
Slide 3: Business overview
01 Business overview Jorma Jokela, CEO 3
Slide 4: Pioneering digital lender
Pioneering digital lender Consumer Business Mobile loans loans bank Founded EU Banking Frankfurt Helsinki Licence Prime 2005 Standard years of active 12profitable growth 1.7M 24 & former customers countries €104M H1 2017 revenue +47% y-o-y growth 4
Slide 5: H1 2017 Highlights
H1 2017 Highlights • Revenue of EUR 103.7 million – up 47.3% year-on-year • Net financing costs are stable at EUR 3.2 million (H1 2016: EUR 3.1 million), benefiting from FX gains in H1 2017 vs FX losses in H1 • Operating profit (EBIT) of EUR 14.9 million – up 48.3% year-on-year 2016 • EBIT margin of
Slide 6: Credit Limit and PlusLoan growth supported by loyal Microloan customer base
Credit Limit and PlusLoan growth supported by loyal Microloan customer base Revenue Split Revenue Split Revenue structure by products in 6M (€’000) Active New market 6M 2016 6M 2017 markets launches in 2017 2016 N/A Ferratum P2P 2 2017 N/A 2016 N/A Mobile Bank 5 2017 N/A 2016 Primeloan 1 2017 N/A Fe
Slide 7: Centralisation
Country integration programme Phase 1: Complete Centralisation Phase 2: In process • A key initiative of our Growth Acceleration Programme initiated in Q3 2016 • Centralisation of customer services, marketing, back office and collection • A total of 228 headcounts have been centralised • Customer Se
Slide 8: Growth through partnerships
Growth through partnerships Third party services Partnering with White labelling and tech integration local banks • Ferratum Mobile Bank as the hub for an • Bespoke financial service customer • Ferratum partners with local banks ecosystem of services engagement solutions for consumer across internat
Slide 9: Financial Highlights
02 Financial Highlights Clemens Krause, CFO 9
Slide 10: Growth momentum continuing in 2017
Growth momentum continuing in 2017 Revenue (EUR million) Operating profit – EBIT (EUR million) 103.7 14.9 +47.3% 10.1 +48.3% 70.4 +41.4% 6.3 +60.2% 49.8 H1 2015 H1 2016 H1 2017 H1 2015 H1 2016 H1 2017 Profit before tax – EBT (EUR million) Profit for the period – EAT (EUR million) 11.7 10.0 7.0 +67.7
Slide 11: Steady quarterly revenue growth and profitability momentum
Steady quarterly revenue growth and profitability momentum 2015 2016 2017 EUR million 60 53,7 50 50 45,5 40 37,2 38,2 31,8 33,2 29,4 30 26,8 23.0 20 10 6,9 6,8 8,1 5,9 5,2 4,9 3,7 4,3 4,2 2,6* 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue EBIT * Including IPO related costs in the amount of EUR 488,941 rec
Slide 12: Revenue growth supported by balanced regional growth
Revenue growth supported by balanced regional growth EUR ’000 9,911 15,013 +51.4% 26,513 21,815 +21.5% H1 2016 H1 2017 27,706 40,725 Total 70,428 Total 103,730 +47.0% 10,996 21,480 +95.3% Region 1 (Finland, Sweden, Denmark, Norway) Region 2 (Netherlands, UK, New Zealand, Australia, Canada) Region 3
Slide 13: Strong y-o-y revenue performance; profit before tax (EBT) up over 60%
Strong y-o-y revenue performance; profit before tax (EBT) up over 60% EUR ‘000 H1 2017 H1 2016 % Change • Impairments in line with management expectations Revenue 103,730 70,428 +47.3% Other income 20 16 +25.0% • Increased impairment ratio affected by free Microloans where impairments Impairment of
Slide 14: Success of Credit Limit and PlusLoan validating portfolio strategy
Success of Credit Limit and PlusLoan validating portfolio strategy EUR ‘000 Microloan PlusLoan Credit Limit SME Other* Total H1 2017** H1 2016 H1 2017** H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 Revenue 21,995 26,926 28,446 12,863 47,720 29,239 5,518 1,314 52 87 103,730
Slide 15: Portfolio quality further improved
Portfolio quality further improved Portfolio NBV (EUR million) 224.9m EUR ‘000 GBV Impairments NBV Coverage ratio (%) 7.2% Dec. 31, 2016 5.4% Current 153,394 (7,309) 146,085 4.8 184.3m 8.4% 1-90 days due 20,683 (5,359) 15,324 25.9 8.0% 4.4% 79.0% 91-180 days due 14,736 (6,597) 8,139 44.8 8.3% >181 d
Slide 16: Solid balance sheet structure: high cash level driven by deposit growth
Solid balance sheet structure: high cash level driven by deposit growth EUR ‘000 30 Jun 2017 31 Dec 2016 EUR ‘000 30 Jun 2017 31 Dec 2016 Assets Equity and liabilities Non-current assets 32,739 30,426 Equity 95,675 87,875 Accounts receivable – consumer loans (net) 224,939 184,346 Non-current liabili
Slide 17: Operating cash flow slightly negative due to reduced inflow of deposits
Operating cash flow slightly negative due to reduced inflow of deposits EUR ‘000 Assets H1 2017 H1 2016 Net cash from operating activities before movements in portfolio and deposits 51,605 32,009 Net cash from operating activities (5,165) 8,826 Net cash used in investing activities (4,164) (4,229) N
Slide 18: Cost of capital
Cost of capital Financing Mix 2016 Financing Mix Q2 2017 Weighted average cost of funding €4.6m €25.0m 10,00% €101.4m €25.0m €121.2m 8,62% 8,02% €25.0m 8,00% €25.0m 6,00% 5,25% €20.0m 4,00% 3.45% €20.0m 2,00% €40.0m €25.0m 0,00% 2014 2015 2016 H1 2017 Ferratum Capital Ferratum Capital Germany GmbH 8
Slide 19: Scope to further improve cost of capital over time
Scope to further improve cost of capital over time Sphere I Operations Sphere I/II Financing Split H1 2017 Sphere II Operations Countries covered by Ferratum Countries / operations NOT currently covered Bank p.l.c.’s EU banking license Sphere I Sphere II by Ferratum Bank p.l.c.’s EU banking license
Slide 20: Shareholder information
Shareholder information Shareholder structure Financial Calendar Date Event Jorma Jokela*: 55.37% 16 November 2017 Report for the first nine months of 2017 Ferratum Oyj**: 0.67% Carmignac*: 9.20% 27-29 November 2017 German Equity Forum Dorval*: 5.09% Total free float***: 43.96% * Shareholders holdin
Slide 21: Outlook
Ferratum” Mor than money
Slide 22: 2017 outlook
2017 outlook • Strong progress on all fronts – revenue growth, profitability, portfolio growth • Well funded balance sheet supported by deposit growth • Country and product diversification continues, with strategically important entry into Brazil, launch of Primeloan in Finland, and Mobile Bank roll
Slide 23: Contacts
Contacts Investor Relations Headquarters Dr. Clemens Krause Paul Wasastjerna Ferratum Group Chief Financial Officer Head of Investor Relations Ratamestarinkatu 11 A Telephone: +49 (0) 30 88715308 Telephone: +358 (0) 40 7248247 00520 Helsinki, Finland Fax: +49 (0) 30 88715309 Fax: +358 (0) 20 741 161
Slide 24: Thank You
Thank You Kiitos Paljon Vielen Dank 24