Slide 1: Full Year Results 2017
ferratum FullYear Results 2017 Corporate presentation 15.03.2018
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Slide 3: Ferratum at a glance
Consumer Business Mobile Bank loans loans years of Active & former profitable Countries customers growth Year-on-year FY 2017 revenue Year-on-year revenue growth profit growth Founded EU Banking Frankfurt Helsinki 2005 Licence Prime Standard 3
Slide 4: Mobile platform, product diversification and geographic expansion timeline
Mobile Platform Launch of Banking-as-a- Service Launch of the Mobile Bank Banking licence Targeting 30 countries in medium term Product Diversification Geographic Expansion Mobile Concept 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FIN SWE LAT POL DEN No new GBR RUS No new GER C
Slide 5: Sustainable profitable growth
Innovation & product We provide financial services that enable and diversification empower our customers Sustainable Our Mobile Financial Platform Model that allows us and our partners to scale services globally profitable growth Geographic Innovation, geographic expansion and Expansion Mobile Platf
Slide 6: Addressing a range of borrowing needs
Addressing a range of borrowing needs Average Average Loan Revenue Revenues by Active Products Loan Value Term (Days) Share Product (€,000) Markets PrimeLoan 2016 N/A €3,000 – €20,000 / €5,095 1,610 N/A 1 2017 N/A 1 – 10 years Business (SMEs) 2016 4,251 €13,142 5.9% Up to €250,000 / 398 +209% y-o-y
Slide 7: Customer growth
1 876 144 782 220 1 561 687 695 440 1 231 542 547 617 2015 2016 2017 2015 2016 2017 * Total customers: active and former customers who have **Customers with a Mobile Bank account and lending customers been granted one or several loans in the past or has an who have had an open balance in the last 12
Slide 8: Global scalability beyond Ferratum's balance sheet: multiple sources of revenue
Global scalability beyond Ferratum’s balance sheet: multiple sources of revenue Ferratum‘s technology and licence A channel agnostic, flexible customer platform enables consumer-facing brands interface and back-end data engine, to offer financial services: supported by a decision making centre ✓ Fee
Slide 9: Strategic partnerships with non-financial brands
▪ Strategic partnerships with non-financial brands to access new/broader customers segments Our success with Thomas Cook Money ▪ Rigorous partner selection criteria on a micro and ▪ Launch of Sumo in Sweden in Dec 2017 macro-economic level ▪ Roll-out to other key European markets planned in 2018, in
Slide 10: Driving Ferratum's profitability and growth
Driving Ferratum’s profitability and growth Smart IT Operational excellence Smart Marketing ▪ Core business logic module developed ▪ Customer support and back office ▪ Marketing centralized which enables an centralized to Sliema, Malta improved overview of the groups ▪ API integration layer built ma
Slide 11: Financial Highlights
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Slide 12: Financial performance, portfolio quality, balance sheet
Financial performance Portfolio quality Balance sheet Operating cash flow Cost of capital and financing 12
Slide 13: Revenue, EBIT, EBT and net profit FY2015-2017
221,6 31,8 154,1 +43.8% 21,1 +50.6% 111,0 17 +38.8% +24.1% FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 23,2 20,1 14,7 +57.8% 12,9 13,0 +54.8% +14.0% 10,9 +19.2% FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 13
Slide 14: Quarterly revenue and EBIT
EUR million 60,6 60 57,3 53,7 50 50 45,5 37,2 38,2 40 31,8 33,2 29,4 30 26,8 23.0 20 8,1 8,9 8,0 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 Q4 Revenue EBIT * Including IPO related costs in the amount of EUR 488,941 recognised as operating expenses in Q1 2015 14
Slide 15: Profit before tax (EBT) up by 58%
Profit before tax (EBT) up by 58% FY 2017 FY 2016 % Change ▪ New customer acquisition tactics lead to higher “Impairment of loans” and Revenue 221,638 154,128 +43.8% lower “Selling and marketing Other income 534 64 +734.4% expenses” Impairment of loans (75,629) (47,964) +57.7% ▪ Overall EBIT is incr
Slide 16: Results by product
EUR ,000 Microloan PlusLoan Credit Limit SME Mobile Bank* Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Revenue 43,886 52,837 60,315 30,232 103,774 66,444 13,135 4,251 529 364 221,638 154,128 Impairments (21,822) (19,779) (22,880) (9,709) (27,534) (17,204) (3,078) (909) (315) (36
Slide 17: EBIT of the lending business
1.28 39.5 31.8 0.93 -6.4 -1.3 -0.29 -0.06 ▪ EBIT of the lending business (excluding IFRS2 and Mobile Bank) is €39.5 million. ▪ Earnings per share (EPS) without Mobile Bank and IFRS2 would be ▪ The Mobile Bank is contributing €174 million in deposit volume. 1.28 Potential benefit of ~0.6% avrg deposi
Slide 18: Revenue by region
EUR ,000 20,367 32,189 +58.0% 88,726 60,566 +46.5% 45,034 FY 2016 FY 2017 Total 154,128 54,393 Total 221,638 +20.8% 28,161 46,330 +64.5% REGION 1 REGION 2 REGION 3 REGION 4 Finland, Sweden, Netherlands, UK, Estonia, Latvia, Lithuania, Bulgaria, Romania, Croatia, Spain, Denmark, Norway New Zealand, A
Slide 19: Portfolio quality and NBV
Portfolio NBV (EUR million) EUR ‘000 GBV Impairments NBV Coverage ratio (%) 31 Dec 2016 257.4m Current 153,394 (7,309) 146,085 4.8 +40% 6.5% 4.5% 1-90 days due 20,683 (5,359) 15,324 25.9 8.6% 91-180 days due 14,736 (6,597) 8,139 44.8 80.4% 184.3m 8.0% >181 days due 58,197 (43,400) 14,797 74.6 4.4% 8
Slide 20: IFRS 9 implemented on 1 January 2018
The new accounting standard IFRS 9 was implemented on 1 January 2018 IFRS 9 requires recognition of loans at fair value, therefore any expected losses must be accounted for at the disbursement date – Ferratums accounting of receivables was already based on an expected loss model – From 1 January, Fe
Slide 21: High cash level driven by deposit growth
High cash level driven by deposit growth EUR ‘000 31 Dec 2017 31 Dec 2016 EUR ‘000 31 Dec 2017 31 Dec 2016 Assets Equity and liabilities Non-current assets 36,128 30,426 Equity 105,243 87,875 Accounts receivable – consumer loans (net) 257,406 184,346 Non-current liabilities 64,167 72,246 Other recei
Slide 22: Cash flow
EUR ‘000 Assets FY 2017 FY 2016 Net cash from operating activities before movements in portfolio and deposits 109,148 50,857 Net cash from operating activities 33,324 23,733 Net cash used in investing activities (11,329) (8,266) Net cash used in financing activities 38,990 40,857 Net increase/decrea
Slide 23: Funding sources and cost of capital
10 8,62% 8,02% €25.0M €25.0M 8 €25.0M €25.0M 6 5,25% €20.0M €40.0M €25.0M €24.7M 4 3,11% €101.4M €20.0M 2 €4.6M €174.3M 0 2014 2015 2016 2017 Ferratum Capital Germany GmbH 8% 2018 Ferratum Capital Germany 4.875% 2019 Ferratum Bank 4.9% 2017 Ferratum Bank 6.25% + 3m Euribor 2020 Nordea Credit Line Fe
Slide 24: Countries covered by Ferratum Bank's EU banking licence
Countries covered by €25.0m Countries / operations not currently utilising €20.0m Ferratum Bank p.l.c.’s EU banking licence Ferratum Bank p.l.c.’s EU banking licence €25.0m €174.3m Potential Sphere I Operations €24.7m €40.0m Sphere I WACC: 2.50 % Ferratum Capital Germany GmbH 8% 2018 Ferratum Capita
Slide 25: Shareholders and financial calendar
Jorma Jokela* Date Financial Calendar Events 44,16% 19 Apr 2018 Annual General Meeting 2018 Ferratum Oyj** 30 May 2018 Report for the first three months of 2018 Carmignac* 30 Aug 2018 Report for the first half-year 2018 Dorval* 22 Nov 2018 Report for the first nine months of 2018 55,17% Total free f
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Slide 27: Summary and 2018 guidance
▪ Consistently strong revenue growth and profitability ▪ Well funded balance sheet supported by deposit growth ▪ Further launches and partnership news in the pipeline ▪ 2018 guidance includes possible IFRS 9 effects ▪ Q1 2018 Y-o-Y revenue growth expected at about 20-30% EUR 280 – 310m % € 000s 300
Slide 28: Contact details
Dr. Clemens Krause Paul Wasastjerna Ferratum Group Chief Financial Officer Head of Investor Relations Ratamestarinkatu 11 A Telephone: + 49 (0) 30 921005844 Telephone: +358 (0) 40 7248247 00520 Helsinki, Finland e-Mail: clemens.krause@ferratum.com e-Mail: paul.wasastjerna@ferratum.com Telephone: +35