Data Science. Credit Scoring. Digital Finance THE MOST INNOVATIVE - PowerPoint PPT Presentation

Data Science. Credit Scoring. Digital Finance THE MOST INNOVATIVE TOP-2 TOP-50 INNOVATION BEST LENDING 100 HOTTEST IN CREDIT SCORING FASTEST GROWING FINTECH FASTEST GROWING LEADER PLATFORM STARTUPS IN EUROPE SERVICES COMPANY IN EUROPE COMPANY IN EUROPE 1 2017 2017 September 2018 September 2018 April 2018 March 2018

1 EXECUTIVE SUMMARY 2 MARKET OVERVIEW AND COMPETITORS LANDSCAPE 3 PRODUCT & IT 4 KEY FINANCIALS AND FUNDING STRATEGY 2

Executive Summary LEADING INTERNATIONAL FINTECH COMPANY Company Overview Key Business Highlights • In Industry: digital consumer finance • Str trong fin financial pe performance: • Founded: 2015, HQ Barcelona − $33m revenue for 9m18 (197% growth vs. 9m17) • Employees: : 300+ − $64m issued for 9m18 (142% growth vs. 9m17) − $55m gross portfolio in Sep-18 (175% growth vs. • Products: Consumer instalment loans Sep-17) • Geography : Europe (Spain & Poland), LatAm (Brazil & Mexico) − $55m annual re revenue after 3 years of operations, plans for 2019 - $135m (including $6m credit card revenue) Global Expansion: Europe and LatAm • Ra Rapidly gro growing cus ustomer ba base: : 1.2 .2m registered users as Loans Credit cards at Sep-18 (168% growth vs. Sep-17) • Technology and data driven with fu fully in in-house IT IT pla latform and international expertise 1 1 20 202 MX 2017 BR 2016 610 610 PL 2015 ES 2015 (HQ) 633 633 92 92 BL 2012 (R&D hub) 135 135 423 423 55 55 18 18 256 256 2017 2018F 2019F 2020F 2021F 2022F 3

Executive Summary LEADING INTERNATIONAL FINTECH COMPANY Our mission Empowering underbanked to become financially included and live better lives by offering flexible, technology-empowered financial products Our strategy Key Numbers 1m+ registered users To build number one online consumer lending pla latform across Europe (Poland, Spain) and LatAm (Brazil, Mexico) c. 20,000 new registered users weekly To launch ne new consumer pr products:  credit cards with zero balance transfer $600m+ of revenue from loans by 2022  money transfer & payments  credit monitoring and educational tool $1.2bn of revenue from credit cards by 2022  finance planner Our successful tractions was proved by top Recent Selected Awards The most innovative Fastest growing fintech Fastest growing 100 hottest in credit scoring company in Europe company in Europe startups in Europe services 4

ID Finance Solid Expansion Plan to Capture Market Opportunity in Latin America RAPID GROWTH EMPOWERED THROUGH EFFECTIVE SCALING STRATEGY Net Loan Portfolio 2016 2017 2018 2019 2020 2021 2022 Consumer loans Credit cards $364m $1.3bn $2.5bn $3m $3m $13m $13m $36m $36m $1 $109m Launch in Europe LatAm expansion Product diversification Further scaling Expand product range: Achieving profitability of credit  Spain. Jun-15 Brazil. Nov-16   Credit cards (zero transfer card business  Poland. Dec-15 Mexico. Sep-17 balance)   New consumer loans Exploring scaling opportunities   Hired team Created pool of loyal Overdrafts in other countries  Launched customers Current accounts/deposits  unsecured lending Currency exchange tools  Money transfers  Majo jor factors for effecti tive scali ling Pro rofessional and moti tivate ted Centralised IT IT and ris risk- Avail ilabili lity ty of f fu funding glo lobal and lo loca cal te team infrastructu in ture 5

Strong Management Team GLOBAL TEAM OF FINANCIAL SERVICES AND TECHNOLOGY EXPERTS Javier Lopez Alexander Dunaev CFA Kieran Donnelly Boris Batin PhD Co-founder, COO Board member Chief Financial Officer (CFO) Co-founder, CEO 10+ years of experience in banking and finance 30+ years of management experience in 19+ years of experience in financial services 15+ years of work experience in banking banking and finance Previous experience in General Electric and Previously held various positions at Deutsche Previous experience: Deutsche Bank, London Served as CEO of 4finance Bank, Renaissance Capital and RBS in London Standard Chartered Bank Holds Chartered Financial Analyst degree and Moscow Holds senior roles at Standard Bank Group, Graduated from ESADE University (Barcelona, Graduated from Imperial College with a degree Graduated from Cambridge University with a MDM Bank and Renaissance Group Spain) with a degree of MBA of Master in Finance degree of Master in Economics Yannick Del Ponte Alessandro Ceschel Antonio de Brito Ekaterina Kazak Bonilla Chief Risk Officer (CRO) Country Manager (Brazil) Chief Marketing Officer (CMO) Country Manager (Mexico) 10 years of work experience in risk 11 years of professional experience in Digital 12+ years of experience in financial services 20+ years of experience working for financial management Marketing and international IT Projects multinational companies. Previous experience in Asset Management Previously worked as Head of Russia & CIS Previously held senior management positions in Previously developed online internet industry as well as in Enova (multinational Experian Analytics businesses B2C, B2B and P2P in Spain – Servicios Financieros con Valor, Pretmex and online lending company) as Strategy and Ulabox, Logismarket, Socialcar, worked in MNC Fullerton Financial Holdings Operations Manager and Security Asset Graduated from Moscow State University of (Nestlé) and in early stage startups Economics, Statistics and Informatics Certified in Financial Institutions for Private Graduated from Padova University with a Graduated from Duke University at North Enterprise Development at Harvard Kennedy School Master in Industrial Engineering and Business Carolina, USA, with a degree of MBA Post Graduate Certificate in Corporate Finance at Administration (Operations and Strategy) Universidad Intercontinental 6

1 EXECUTIVE SUMMARY 2 MARKET OVERVIEW AND COMPETITORS LANDSCAPE 3 PRODUCT & IT 4 KEY FINANCIALS AND FUNDING STRATEGY 7

Pivotal Moment for Latin America FinTech Market The major FinTech categories FinTech adoption* (world), 2017 Money transfer & payments China 69% 69% Savings & Investments India 52% 52% $ 40 bn UK 42% 42% revenue by Financial planning Adoption in Brazil 2028 is anticipated to Brazil 40% 40% (BR+MX) grow up to 69 69%* Australia 37% 37% Borrowing Spain 37% 37% Insurance World average 33% 33% *Adoption is a percentage of respondents in each market who reported using one or more FinTech service in that category. Calculated based on survey prepared by E&Y in 2017 Latin America is one of the world’s fastest growing markets for Fin inTech adopti tion and Bra razil il is is in in Top-  5 markets wit 5 ith th the hig ighest t Fin inTech adopti tion. The le level l is is expected to to grow from 40% to to 69% 8

Pivotal Moment for Latin America FinTech Market Household loans in Brazil and Mexico, $bn Transaction volumes on LatAm FinTech market ($bn) $100bn unsecured consumer loans outstanding Actuals Forecast with 7% CAGR expected in Brazil and Mexico $160 142 142 $140 127 127 802 802 $120 113 113 100 100 648 648 $100 89 89 79 79 $80 70 70 $60 303 303 $40 $20 $0 2016 2017 2018 2019 2020 2021 2022 2008 2017 2022 Sources : Statista, E&Y survey (2017), Goldman Sachs Sources: EIU, Goldman Sachs, Central bank of Brazil, ID Finance Fin inTech mark rket is is ra rapid idly ly gro rowin ing in in LatAm and expecte ted to to genera rate te $40bn in in th the next t 10 years rs wit ith  transacti tr tion volu lumes futu ture CAGR of 12% 9

Digital Banks Poised to Revolutionise LatAm’s Banking Sector Uncompetitive banking services Demographic bonus Low competition: 5 banks controlling c. 80% bank Young, educated, tech-savvy and assets which results in the world’s third highest financially literate generation enters the borrowing costs period of greatest productivity Outdated technology: offline and bureaucratic business processes Technology Economic disruption recovery Key drivers of Internet and mobile penetration increases: Structural reforms, fiscal discipline, falling digital banking Brazil is the fourth-largest by number of nominal interest rates will unlock GDP smartphone users in the world (80 mln) growth during next 2 years growth in New distribution channel for financial services makes “branch” -banking obsolete Brazil and Mexico Underbanked Arising Mexican market population Only 14 bank branches per 100,000 inhabitants and only few small alternative >50% 0% Brazil & Mexico population is consumer lenders (Kueski, Kubo, Albo, underbanked Prestadero) cause strong demand in banking services Uncompetit itiv ive bankin ing servic ices to together wit ith in increase in in mobil ile penetratio ion and growth of popula lati tion cre reate str trong opport rtunit ity for r Fin inTech companie ies to to gain in mark rket t share re fro rom poli liti ticall lly influ in luenced in incumbents ts 10