Consumer Business Mobile Bank loans loans years of Active & former profitable Countries customers growth Year-on-year 9M 2018 Year-on-year revenue growth revenue EBIT growth Founded EU Banking Frankfurt Helsinki 2005 Licence Prime Standard 2
Mobile Bank new generation Launch of Banking-as-a- Service Launch of the Mobile Bank Banking licence Product Diversification Geographic Expansion Mobile Concept 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 GBR SWE No new FIN LAT POL DEN No new RUS No new GER CAN BRA countries countries countries LIT CRO EST ROM FRA MLT NIG BUL ESP CZE NZL NOR SVK AUS MEX NED 3
We provide financial services that enable and Innovation empower our customers & product diversification Our Mobile Financial Platform Model that allows Sustainable us and our partners to scale services globally profitable growth Geographic Mobile Innovation, geographic expansion and Expansion Platform global partnerships that generate sustainable, profitable growth 4
Moving towards longer-term solutions and higher customer lifetime value Loan amount LOW HIGH LONG SOLUTION SME Primeloan Maturity PRODUCT PlusLoan Credit Limit Microloan SHORT HIGH LOW APR 5
Addressing a range of borrowing needs Average Average Loan Revenue 9M Revenues by Active Products Loan Value Term Share Product (€,000) Markets Primeloan (incl. Mobile Bank ) 2017 85 €3,000 – €20,000 / €5,989 4.9 years 0.4% 2 (5) +888% y-o-y 2018 1 – 10 years 840 Business (SMEs) 2017 9,001 +72.7% y-o-y 8.2% Up to €250,000 / €13,290 410 days 8 6 – 18 Month term 2018 15,540 Credit Limit 2017 +25.5% y-o-y 75,294 49.7% Up to €3,000 / €1,246 N/A 10 Digital revolving credit line 2018 94,519 PlusLoan 2017 43,902 +8.8 y-o-y 25.1% €300 – €5,000 / €744 355 days 10 2 – 36 month term 2018 47,757 Microloan 2017 32,724 16.6% €25 – €1,000 / €205 29 days 17 -3.6% y-o-y 7 – 90 day term 2018 31,538 6
▪ Mobile account opening ▪ Real-time loans ▪ Deposits ▪ Transactions ▪ Currencies ▪ Third-party products in future Deposits for more Open platform for Mobile features Multi account access favourable refinancing new and third-party improve improves Big Data of loan business products customer loyalty scoring (commission) 7
Global scalability beyond Ferratum’s balance sheet: multiple sources of revenue Ferratum‘s technology and licence platform enables consumer-facing brands A channel agnostic, flexible customer to offer financial services: interface and back-end data engine, ✓ Fees and/or profit sharing supported by a decision making centre and an API integration channel to process ✓ Cheap funding sources third party data: ✓ Increased customer base ✓ Fees Ferratum Operating System 1.0 ✓ Cheap funding sources Current accounts ✓ Interest on lending products ✓ Deposits ✓ Loans ✓ Debit Card ✓ Payments ✓ An ecosystem of services through the A franchise model that combines integration of third party products and Ferratum’s plug and play Mobile services: Financial Platform and our partners’ balance sheets ✓ Fees and/or profit sharing ✓ Fees and/or profit sharing ✓ More attractive products ✓ Access to more markets ✓ Increased customer loyalty and customers 8
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26,8 190,2 +12.7% +18.1% 23,8 161,0 +67.3% +37.2% 108,6 14,2 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 -14.0% 17,6 14,9 -14.1% +85.3% 15,1 12,8 +79.5% 9,5 8,3 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 10
EUR millions 70 66,0 62,8 61,4 60,6 57,3 60 53,7 50,0 50 45,5 38,2 37,2 40 33,2 30 20 10,2 8,9 8,7 8,1 8,0 8,0 6,9 6,8 10 5,2 4,9 4,2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue EBIT 11
Portfolio NBV (EUR million) EUR ‘000 GBV Impairments NBV Coverage ratio (%) 1 Jan 2018 306.3 Current 158,368 (4,695) 153,673 3.0 14.8% 1-90 days due 72,398 (17,649) 54,749 24.4 248.1 3.2% 14.3% 91-180 days due 21,474 (12,768) 8,706 59.5 12.5% 3.7% 21.7% 3.5% >181 days due 84,004 (52,988) 31,016 63.1 22.1% Total 336,24 6,243 (88,10 100) 0) 248,14 8,143 26.2 .2 22.1% 60.3% 59.9% 61.9% EUR ‘000 GBV Impairments NBV Coverage ratio (%) 30 Sep 2018 Current 189,648 (5,009) 184,639 2.6 84,800 (18,235) 66,565 21.5 1-90 days due 91-180 days due 22,943 (13,208) 9,734 57.6 1 Jan 2018 30 Sep 2018 139,438 (94,062) 45,376 67.5 >181 days due Current 1-90 days due Total 436,829 6,829 (130,515) 0,515) 306,314 6,314 29.9 .9 91-180 days due >181 days due 12
High cash level based on high deposit volume EUR ‘000 30 Sep 2018 31 Dec 2017 EUR ‘000 30 Sep 2018 31 Dec 2017 Assets Equity and liabilities Non-current assets 44,533 36,128 Equity 107,937 105,243 Accounts receivable – consumer loans (net) 306,314 257,406 Non-current liabilities 137,613 64,167 Other receivables 5,721 10,554 Current liabilities 271,835 267,185 Income tax assets 312 519 of which deposits 192,291 174,301 Cash and cash equivalents 159,409 131,832 Total Equity & Liabilities 517,386 436,595 Total Assets 517,386 436,595 Net debt to equity ratio 2.32 1.90 ▪ Deposit volume higher than required in 2018 – but in line with 2019 needs ▪ Moderate growth in accounts receivable – in line with revenue growth ▪ Solid net debt to equity ratio of 2.32 ▪ Two bonds have been repaid in October 2018 which will reduce total assets in Q4 and strengthen the equity ratio 13
Countries covered by Countries / operations not currently utilising Ferratum Bank p.l.c.’s EU banking licence Ferratum Bank p.l.c.’s EU banking licence Potential Sphere I Operations Loans Receivables 114,1 Loans Receivables 45,01 Cash Cash Ferratum Capital Germany 8% 2018* 192,3 100 Ferratum Bank 3mE+ 6.25% 2020 Ferratum Capital Germany 4.0% 2018* 159,96 146,4 Ferratum Capital Germany 4.875% 2019 Deposits from Customers 25 20 Ferratum Capital Germany 3mE + 5.5% 2022 40 25 * Bonds were partially repaid as at 30 September Assets Liabilities Assets Liabilities 2018, and subsequently fully repaid on 22 October 2018, from proceeds of the bond for EUR 100m. 14
10 8 €25.0M €25.0M* €25.0M €25.0M 6 €40.0M €100.0M €20.0M €40.0M 4 €155.3M €10.0M 2 €20.0M* €192.3M 0 2015 2016 2017 Q3 2018 Ferratum Capital Germany GmbH 8% 2018* Ferratum Capital Germany 5.5% + 3m Euribor 2022 Ferratum Capital Germany 4.00% 2018* Nordea Credit Line Ferratum Capital Germany 4.875% 2019 Deposits Ferratum Bank 6.25% + 3m Euribor 2020 *Bonds were partially repaid as at 30 September 2018, and subsequently fully repaid on 22 October 2018, from proceeds of the bond for EUR 100m. 15
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Date Financial Calendar Events 14 Mar 2019 Ferratum Group 2018 preliminary results 27 Mar 2019 Ferratum Group full year 2018 results 17 Apr 2019 Ferratum Group AGM 29 April 2019 Ferratum Bank and Ferratum Capital Germany full year 2018 results 16 May 2019 Ferratum Group Q1 results 21 Aug 2019 Ferratum Group H1 results 30 Aug 2019 Ferratum Bank and Ferratum Capital Germany H1 results 14 Nov 2019 Ferratum Group Q3 results HSBC* Jorma Jokela* Ferratum Oyj** Dorval* Total Free Float*** Other shareholders * Shareholders holding based on the latest shareholder notifications received ** Own shares held by Ferratum Oyj *** Total free float includes shares held by Dorval & HSBC as well as shares held by employees and management 17
▪ Full year revenue guidance narrowed to EUR 260-265 million from EUR 260-280 million ▪ EBIT margin guidance maintained at 13-16% ▪ Remedial action taken to restore loan approval rates ▪ Further management actions being taken to improve performance % € millions EUR 260 – 265m 300 30 +18% 250 +44% 200 20 150 +39% 13-16% 14.8% 14.4% 13.7% 100 10 50 0 0 2015 2016 2017 2018 Revenue EBIT Margin 18
Dr. Clemens Krause Emmi Kyykkä Ferratum Group Chief Financial Officer Deputy Head of Investor Relations Ratamestarinkatu 11 A Telephone: + 49 (0) 30 921005844 Telephone: +41 (0) 79 9406315 00520 Helsinki, Finland e-Mail: clemens.krause@ferratum.com e-Mail: emmi.kyykka@ferratum.com 19 19
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Operating profit (EBIT) up by 12.7% ▪ EBIT increasing initiatives have been EUR, 000 9M 2018 9M 2017 % Change taken and show some improvements in Q3, with more expected in Q4 2018 161,006 Revenue 190,194 +18.1% and Q1 2019 200 Other income 333 + 66.5% ▪ Net financial cost include a € 2.4 million (56,277) (63,996) Impairment of loans +13.7% FX loss vs a EUR 0.1 million loss in 2017 (30,396) (24,958) Selling & marketing expenses +21.8% ▪ Net financial cost include EUR 800,000 extra interest as the outstanding bonds (56,161) Total other operating expenses (69,303) +23.4% (due in 10/2018) were not fully converted into the new bonds at the 23,810 EBIT 26,833 +12.7% period end (6,236) Net financial costs (11,723) +88.0% 17,57 575 EBT 15,11 110 -14.0% (2,636) (2,267) Income tax -14.0% 14,939 Net profit 12,843 -14.0% 0.69 Earning per share, basic (EUR) 0.60 -13.0% 0.69 Earning per share, diluted (EUR) 0.59 -14.5% 21
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