Slide 1: IFRS unaudited financial results, nine months to 30 September 2017
IFRS unaudited financial results Nine months to 30 September 2017
Slide 2: Overview
Overview 2
Slide 3: At the forefront of the mobile banking revolution
Founded EU Frankfurt Helsinki Banking Prime 2005 Licence Standard Consumer Business Mobile loans loans bank years of active 12 profitable growth 1.8M & former customers 25 Countries €161M 9M 2017 revenue +48% year-on-year growth At the forefront of the mobile banking revolution 3
Slide 4: Ferratum – What we do today
Ferratum – What we do today Third party services and integration Ferratum P2P Mobile Bank as the hub for an ecosystem of services Investments available via Mobile Bank* and website Third-party products available via API-based widgets* Mobile app Investing Partnerships Lending Mediated investment sol
Slide 5: Lending
Lending Addressing a range of financial needs Average Average Loan Revenue Products Revenues by product (€’000) Active markets Loan Value Term (Days) Share PrimeLoan 2016 N/A N/A N/A 1 €3,000 – €20,000 / 1 – 10 years 2017 N/A Business (SMEs) 2016 2,541 €12,955 374 5.6% 6 Up to €250,000 / 6 – 18 Mont
Slide 6: Accelerating Growth – one year into our programme
Accelerating Growth – one year into our programme Driving Ferratum’s profitability and growth Organization and Geographic Mobile Bank Product Portfolio Management Expansion Organizational change International strategy Product management Focusing on products that from region focus to to include joint
Slide 7: Ferratum's Mobile Bank ecosystem
Ferratum’s Mobile Bank ecosystem Global scalability beyond Ferratum’s balance sheet White Label Partners Ferratum‘s technology and licence platform enables consumer-facing brands to offer financial services Mobile Financial Platform Ferratum Operating System 1.0 ✓ Current accounts ✓ Deposits ✓ Loans
Slide 8: Financial highlights
Financial highlights 8
Slide 9: Summary
Summary • Financial performance • Portfolio quality • Balance sheet • Operating cash flow • Cost of capital and financing 9
Slide 10: Revenue and profitability growth accelerated in 2017
Revenue and profitability growth accelerated in 2017 Revenue (EUR million) Operating profit – EBIT (EUR million) 23,8 161,0 +48.2% +67.3% 108,6 14,2 +37.2% 12,2 +12.0% 79,2 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 Profit before tax – EBT (EUR million) Profit for the period – EAT (EUR million)
Slide 11: Accelerated growth since Q4 2016
Accelerated growth since Q4 2016 2015 2016 2017 EUR million 60 57,3 53,7 50 50 45,5 40 37,2 38,2 31,8 33,2 29,4 30 26,8 23.0 20 8,1 8,9 10 5,9 6,9 6,8 3,7 4,3 5,2 4,9 4,2 2,6* 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue EBIT * Including IPO related costs in the amount of EUR 488,941 recognized as ope
Slide 12: Revenue growth in all regions
Revenue growth in all regions EUR ’000 23,522 14,650 +60.6% 40,251 32,913 +8.5% 9M 2016 9M 2017 43,072 64,247 Total 108,645 Total 161,006 +49.2% 32,987 18,010 +83.2% Region 1 (Finland, Sweden, Denmark, Norway) Region 2 (Netherlands, UK, New Zealand, Australia, Canada) Region 3 (Estonia, Latvia, Lith
Slide 13: Strong y-o-y revenue performance; profit before tax up by 86%
Strong y-o-y revenue performance; profit before tax (EBT) up by 86% EUR ‘000 9M 2017 9M 2016 % Change • Applying IFRS 2, the potential benefit from options granted to employees (EUR 848k) is allocated as Revenue 161,006 108,645 +48.2% personnel expenses Other income 200 113 +77% • Due to a change in
Slide 14: Credit Limit and PlusLoan established as core drivers of revenue
Credit Limit and PlusLoan established as core drivers of revenue EUR ‘000 Microloan PlusLoan Credit Limit SME Other* Total 9M 2017** 9M 2016 9M 2017** 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Revenue 32,724 38,935 43,902 20,776 75,294 46,180 9,001 2,541 85 213 161,006
Slide 15: Portfolio quality stable
Portfolio quality stable Portfolio NBV (EUR million) EUR ‘000 GBV Impairments NBV Coverage ratio (%) 31 Dec, 2016 242.9m Current 153,394 (7,309) 146,085 4.8 7.5% 1-90 days due 20,683 (5,359) 15,324 25.9 4.9% 91-180 days due 14,736 (6,597) 8,139 44.8 184.3m 8.3% >181 days due 58,197 (43,400) 14,797 7
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 Sep 2017 31 Dec 2016 EUR ‘000 30 Sep 2017 31 Dec 2016 Assets Equity and liabilities Non-current assets 34,160 30,426 Equity 100,522 87,875 Accounts receivable – loans to customer (net) 242,866 184,346 Non-current lia
Slide 17: Operating cashflow positive
Operating cashflow positive EUR ‘000 Assets 9M 2017 9M 2016 Net cash from operating activities before movements in portfolio and deposits 75,579 40,242 Net cash from operating activities 14,691 43,806 Net cash used in investing activities (6,862) (6,038) Net cash used in financing activities 34,617
Slide 18: Cost of capital further decreasing
Cost of capital further decreasing Financing Mix 2016 Financing Mix 9M 2017 Weighted average cost of funding €4.6m €20m €25.0m 10,00% €101.4m €25.0m €155.3m €25.0m 8,62% 8,02% 8,00% €20.0m €25.0m 6,00% 5,25% 4,00% 3.44% €20.0m €40.0m 2,00% €25.0m 0,00% Ferratum Capital Ferratum Capital Germany 2014
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 9M 2017 Sphere II Operations Countries covered by Ferratum Sphere II Countries / operations NOT currently covered Bank p.l.c.’s EU banking license WACC: 4.83 % by Ferratum Bank p.l.c.’s EU banking lice
Slide 20: Shareholder information
Shareholder information Shareholder structure Financial calendar Date Event Jorma Jokela*: 55.37% 21 November 2017 Lond Capital European Mid Small Cap Forum Stockholm Ferratum Oyj**: 0.67% 27 - 29 November 2017 German Equity Forum Carmignac*: 9.16% 14 December 2017 Lond Capital European Mid Small Ca
Slide 21: Summary
Summary 21
Slide 22: Summary
Summary • Consistently strong revenue growth and profitability • Well funded balance sheet supported by deposit growth • Further launches and partnership news in the pipeline • Full year 2017 revenue now expected to be in the upper end of previously published guidance EUR million EBIT Margin (%) EUR
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: +358 (0) 40 7248247 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