Slide 1: First Quarter Results 2019
ferratum First QUarter Results . 2019 Preliminary unaudited results for the first 3 months ended 31 March 2019 16 May 2019
Slide 2: Forward-looking statements disclaimer
This presentation contains, or may be deemed to identify forward-looking statements. contain, forward-looking statements. These By their nature, forward-looking statements involve statements relate to future events or future financial risks and uncertainties because they relate to events Nothing in
Slide 3: Overview
ferratum Overview ferratum
Slide 4: Solid revenue growth of +19.1% y-o-y and EBIT of EUR 9.7m
Solid revenue growth of +19.1% y-o-y and EBIT of EUR 9.7m – both within our EBIT guidance for 2019 of > EUR 45m ▪ Group revenues grew with +19.1% y-oy to EUR 73.2m, largely driven by Credit Limit which grew y-o-y by +34% and contributed with 53% to Group revenues ▪ Q1 2019 EBIT at EUR 9.7m (margin a
Slide 5: 2019 Expectations and Key Priorities
Years profitable Countries growth 2019 Expectations and Key Priorities Consumer Business Mobile Bank Loans loans ▪ EBIT expectation > EUR 45m 1% of revenues 91% of revenues 8% of revenues ▪ Management focus on a further improvement of operational leverage, cost discipline and loan portfolio quality
Slide 6: Revenue share of core products increased from 82% to 86%
Revenue share of our core products PlusLoan, Credit Limit, SME and Primeloan increased from 82% in Q1 2018 to 86% in Q1 2019 Average Average Revenue 3M Revenues by Active Products Loan Comments Loan Value Share Product (€,000) Markets Term Primeloan 2018 123 (incl. Mobile Bank ) +572.5% y-o-y • Swed
Slide 7: Executing key priorities for 2019
Executing key priorities for 2019 resulted in an increase of 85.9% in loan volume y-o-y for SME and Primeloan, representing 21.0% of total loan volume in Q1 2019 (14.6% in Q1 2018) LOW LOAN AMOUNT HIGH All products are based on the same principles: PRODUCT: SOLUTION: Full digital setup and high user
Slide 8: New Board members
Non-executive Board members bring a variety of key expertise for Ferratum to build its global financial platform ▪ Juhani Vanhala (Chairman) ▪ Joined Ferratum Board in 2005 ▪ Part time senior advisor for Empower Group, Valor and Mantec and currently serves on the Boards of Vahanen International Oy,
Slide 9: Management leadership profile
▪ Entrepreneurial, energetic and growth-oriented business leader with strong combination of people leadership, operational and strategic skills as demonstrated by strong international performance track record: ▪ Exxon-Mobil (1986-1994), ▪ McKinsey & Company (1994-1998), ▪ General Electric (1998-2008
Slide 10: Financial Highlights
ferratum Financial Highlights ferratum
Slide 11: Credit Limit revenues grew by +34% and were the main growth driver
EUR, 000 Q1 2019 Q1 2018* % Change ▪ Credit Limit revenues grew by +34% and were the main revenue growth driver based on: Revenue 73,196 61,442 +19.1% ▪ a higher average loan volume and Other income 5 6 -28.7% Impairment of loans (28,671) (18,986) +51.0% ▪ an increasing active customer base Selling
Slide 12: Revenue and EBIT by quarter (EUR millions)
EUR millions 80 72.0 73.2 70 66.0 61,4 62.8 60 50 40 30 20 12.5 10.1 8.8 9.7 10 6.5 0 Q1 Q2 Q3 Q4 Q1 Revenue EBIT * Q1-Q3 2018 restated 12 FE-Classification: General\Anyone
Slide 13: Results by product
Microloan PlusLoan Credit Limit SME Mobile Bank*** Total ▪ Microloan: decreasing in EUR ,000 Q1 2019 Q1 2018* Q1 2019 Q1 2018* Q1 2019 Q1 2018* Q1 2019 Q1 2018* Q1 2019 Q1 2018* Q1 2019 Q1 2018 absolute and relative Revenue** 10,478 11,058 17,088 15,852 38,718 28,901 6,083 5,508 830 123 73,196 61,44
Slide 14: Solid cash level and sound deposit volume
Solid cash level and sound deposit volume 14 EUR ‘000 31 Mar 2019 31 Dec 2018 % Change EUR ‘000 31 Mar 2019 31 Dec 2018 % Change Assets Equity and liabilities Non-current assets 61,209 53,714 +14.0% Equity 111,938 107,380 +4.2% Of which IFRS16 – Right-of-use-assets 7,654 0 n.m. Non-current liabiliti
Slide 15: Funding and debt maturities
10 €25M €25M 9 €40M €100M 8 €20M €40M 7 6 €100M €25.9M 5 €183.4M €182M 4 3 2 1 0 2015 2016 2017 2018 Q1 2019 Ferratum Capital Germany 4.875% 2019 Nordea Credit Line Ferratum Bank 6.25% + 3m Euribor 2020 Deposits Ferratum Capital Germany 5.5% + 3m Euribor 2022 15 FE-Classification: General\Anyone
Slide 16: New senior unsecured bond issue
▪ The proceeds from the issue will be used to refinance EUR 25 million of bonds maturing in June 2019 and the the additional funds raised shall be used for further business growth ▪ The new senior unsecured bonds have a coupon of 3 months Euribor plus 5.5% p.a. and a tenor of four years ▪ Tap option
Slide 17: Summary
ferratum Summary
Slide 18: EBIT performance within guidance; main focus 2019
Date Financial Calendar Events • EBIT performance within guidance – full year expected > EUR 45m 25 Jun 2019 Capital Markets Day (Frankfurt) 21 Aug 2019 Group H1 results Main focus 2019 on ❖ EBIT growth Ferratum Bank and Ferratum Capital Germany H1 30 Aug 2019 report published ❖ Migrating Finland an
Slide 19: Investor relations contacts
Dr. Clemens Krause Emmi Kyykkä Ferratum Group Chief Financial Officer Head of Group Communications and Ratamestarinkatu 11 A & Chief Risk Officer Investor Relations 00520 Helsinki, Finland Telephone: + 49 (0) 30 921005844 Telephone: +41 (0) 79 9406315 Telephone: +358 9 4245 2356 e-Mail: clemens.krau
Slide 20: Back up
ferratum Back up ferratum
Slide 21: Currency risk and FX impact on P&L
EUR’000 Q1 2018 Q1 2019 ▪ Ferratum manages currency risk by using derivative instruments ranging between 0% to AUD (0,193) 0,039 70% of the portfolio value in each currency CZK 0,049 (0,132) ▪ Hedging levels have been further increased in Q1 2019 and will be increased throughout the year PLN (0,284)
Slide 22: Shareholder structure
Jorma Jokela HSBC Holdings*** Ferratum Oyj* Dorval AM Total Free Float** Other shareholders All information of shareholders holding based on the latest shareholder notifications received * Treasury shares held by Ferratum Oyj (no voting right and no dividends paid on treasury shares) ** Total free f