Multitude Ag · XETR:MULT
Multitude — Ferratum — Investor Presentation (September 2019)
28 slides from Multitude's investor presentation, September 2019
Slide 1: Corporate Presentation September 2019
ferratum Corporate - Presentation September 2019
Slide 2: Forward-looking statements disclaimer
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 beyond
Slide 3: Overview
ferratum Overview ferratum
Slide 4: Founded in Helsinki 2005: mobile lender and mobile bank
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 opti
Slide 5: Company history and geographic expansion
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 MLT GER CAN BRA BGD EST LIT ESP BUL CRO ROM NOR NIG CZE NZL MEX NED AUS 5 FE-Classification: General\Anyone
Slide 6: Product portfolio by maturity, loan amount and APR
LOW LOAN AMOUNT HIGH All products are based on the same principles: PRODUCT: SOLUTION: Full digital setup and high user convenience, real-time, paperless LONG SME SME – Business loan offering for small and medium size companies Primeloan Primeloan - strategic product for entering larger mass segment
Slide 7: Our typical Ferratum customer
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
Slide 8: Revenue shares by product
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
Slide 9: Technology: data, real-time credit risk scoring, digital onboarding
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
Slide 10: Vision and Mission
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. T
Slide 11: Three growth horizons
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 • Execu
Slide 12: Digital onboarding compared with traditional banks
Traditional banks 30 mins Current account, Virtual card, self-selected Loan Day 3 Identification PIN Day 4+ application ~ in minutes process Consultation, Day 2 >4 days Digital Credit check 3-6 Credit data Credit Wallet approval Loan capture in use signatures, bank Salary payout statements, statemen
Slide 13: Benefits for customers and for Ferratum
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 extra money Decreasing cost of funding Ferratum revenue sourc
Slide 14: Seamlessly integrated, open accounts for all potential customers
Direct Linking 24 million visits Seamlessly integrated, open accounts for all potential customers 14 FE-Classification: General\Anyone
Slide 15: Risk free commission revenue
Commission Risk free revenue profit New Customer customer segments retention 15 FE-Classification: General\Anyone
Slide 16: Finance
ferratum Finance
Slide 17: H1 2019 income statement
EUR, 000 H1 2019 H1 2018* % Change ▪ Revenue growth with 17.2%, main growth drivers Credit Limit 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% Impairment of loans (54,335) (42,162) +28.9% ▪ Improved profitability b
Slide 18: Quarterly revenue and EBIT
EUR millions 80 72.0 73.2 72.4 70 66.0 61.4 62.8 60 50 40 30 20 12.5 10.8 10.1 8.8 9.7 10 6.5 0 Q1 Q2 Q3 Q4 Q1 Q2 Revenue EBIT * Q1-Q3 2018 restated 18 FE-Classification: General\Anyone
Slide 19: Impairments as % of revenues and net receivables
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%
Slide 20: Solid cash level and sound deposit volume
Solid cash level and sound deposit volume 20 EUR ‘000 30 Jun 2019 31 Dec 2018 % Change EUR ‘000 30 Jun 2019 31 Dec 2018 % Change Assets Equity and liabilities Non-current assets 54,273 53,714 +1.0% Equity 113,959 107,380 +6.1% Accounts receivable – consumer loans (net) 354,002 320,538 +10.4% Non-cur
Slide 21: Funding structure and debt maturities
10 €25M €100M 9 €100M €80M 8 €40M €40M 7 6 €25.9M €15M 5 €182M €188M 4 3 2 1 0 2015 2016 2017 2018 H1 2019 Ferratum Capital Germany 4.875% 2019 Nordea Credit Line (of which (repaid in June 2019) no limit used at 30 June 2019) Ferratum Bank 6.25% + 3m Euribor 2020 Deposits Ferratum Capital Germany 5.
Slide 22: Shareholder structure
Jorma Jokela Universal Investment Gesellschaft mbH Ferratum Oyj* Dorval AM 31.52% Total Free Float** Other shareholders 55.05% 7.67% 5.09% 0.67%* All information of shareholders holding based on the latest shareholder notifications received * Treasury shares held by Ferratum Oyj (no voting right and
Slide 23: Summary
ferratum Summary
Slide 24: Proven digital business model with 14 years of profitable growth
Proven digital business model with 14 years of profitable growth • CAGR Revenue (11-18): 34% • CAGR EBIT (11-18): 40% Proven • Strong asset quality digital business Strong competitive position model • 14 years learning curve in key winning and complex areas • Customer-centric organization; Knowing t
Slide 25: Main focus 2019 and EBIT guidance
Main focus 2019 on ❖ EBIT growth and further improvement of operational leverage ❖ Migrating Finland and Denmark under the bank ❖ New generation Mobile Bank / Wallet ❖ Prime Loan roll out ❖ Growing Credit Limit and SME business line Mid-term aspiration Guidance EBIT to exceed EBIT to exceed EUR 100
Slide 26: Contacts and financial calendar
Date Financial Calendar Events Berenberg and Goldman Sachs German Bernd Egger Emmi Kyykkä 23 Sep 2019 Corporate Conference, Munich Chief Financial Officer Head of Group Communications and 14-15 Oct 2019 CF&B Large & Mid Cap Event, Paris Telephone: + 43 (0) 676 765 7152 Investor Relations 16 Oct 2019
Slide 27: Appendix
Appendix ferratum
Slide 28: H1 2019 results by product line
Microloan PlusLoan Credit Limit SME Mobile Bank*** Total ▪ Microloan: decreasing in EUR ,000 H1 2019 H1 2018* H1 2019 H1 2018* H1 2019 H1 2018* H1 2019 H1 2018* H1 2019 H1 2018* H1 2019 H1 2018* absolute and relative terms as per strategy, strong Revenue** 19,379 21,169 32,874 32,178 78,720 60,040 1