Home Credit Presentation of 3Q 2017 results 27 November 2017 - PowerPoint PPT Presentation

Home Credit Presentation of 3Q 2017 results 27 November 2017

Disclaimer This presentation has been prepared solely for informational purposes and shall not be considered as an offer to sell or the solicitation of an offer to buy, subscribe for or otherwise acquire any securities of or obtain lending services from Home Credit B.V., PPF Group N.V. or any of their affiliates in any jurisdiction and shall not be treated as any investment advice or recommendation. This presentation is not directed to, or intended for distribution or use, where it is prohibited by operation of law. The presentation does not take into account, in any way whatsoever, the investment objectives, financial situation or specific needs of its recipients. This presentation and its contents may not be copied or disseminated, in part or as a whole, without prior written consent of Home Credit B.V. Information and opinions presented in this presentation may have been obtained or derived from various sources which are believed by Home Credit B.V. to be reliable but such information has not been verified by Home Credit B.V. No representation or warranty whatsoever, express or implied, is made as to the accuracy, completeness, consistency or the reliability of the information contained in this document and nothing contained in this presentation is, or should be relied upon as, a promise or representation. We accept no liability for loss arising from the use of any information or acting on any opinion contained in this document. We retain the right to change the contents of this presentation at any time without notice. The number in this presentation are largely taken from the audited consolidated IFRS statements of Home Credit B.V. In the interest of comparability historic numbers for Vietnam are pro-forma and certain numbers in respect of Indonesia are also pro-forma. For more information on Home Credit Group, please visit www.homecredit.net.

Home Credit – consumer finance leader in growth markets Key metrics and business mix ( € ) Highlights • HC has experienced high growth rates in its key regions: 2015 2016 2016 Q3 2017 Q3 − China and Vietnam : fast-growing and profitable markets with the Deposits (bn) 4.9 5.4 5.0 6.3 new volume growing by 127% and 59%, respectively Gross loans (bn) 6.6 10.7 8.8 15.0 Equity (bn) 1.2 1.5 1.3 1.7 − Other Asian businesses : (Indonesia, India and Philippines) – all Net income (m) (41.6) 210.2 131.4 231.9 three businesses pursuing a rapid expansion setting themselves Net interest margin 15.6% 14.0% 14.1% 14.2% for a good trajectory to break-even Cost of risk 13.2% 7.6% 8.0% 7.7% − Russia : fully recovered from crisis, growing again the loan RoAE (3.3%) 16.2% 14.1% 19.5% portfolio and achieving strong profits # of distribution points (000) 186 271 241 399 − Other : (Czech Republic, Slovakia and Kazakhstan) which are # of active customers (m) 12.5 20.1 16.8 28.7 mature businesses Ratios annualized where applicable. • Number 1 in point-of-sale lending in most of markets Asia Rest CIS Other 8% 3% 6% • Multichannel customer-centric distribution with 399 thousand Cash CZ & SK distribution points and substantial online presence loans 9% 37% • 28.7m customers and 155 thousand employees • Global footprint covers 10 countries with 3.5bn population China Consumer Russia 63% durables • Leading edge risk management leveraging big data and biometrics 17% loans 56% • Strong and diversified funding Total net loan : € 13.9bn 1

Meeting Agenda 1. STRATEGY AND BUSINESS 2. SUMMARY BY COUNTRY 3. KEY FINANCIAL INDICATORS

Home Credit: business highlights Customer-centric multichannel 1 distribution with strong cross-sell Responsible lending Leading positions 2 5 at the heart in attractive of our practices markets Strong and Leading edge 4 3 diversified risk management funding 2

Customer-centric multichannel distribution 1 with strong cross-sell Acquisition: POS and cash loan walk-in Cross-sell • Existing 90m customer database • 399 thousand distribution points (POS, branches) • Up to 66% of customers eligible for cross-sell within 18 • 300 e-shop agreements Distribution Distribution months • Own websites and mobile apps • From 16% to 20% of customers take either cash loan • Call centres or credit card within 36 months. Consumer Cash loan Cash loan Credit cards durables loan Electronics, white General purpose Purpose General purpose General purpose Purpose goods, Two wheelers Products Products € 1,942 € 1,105* Average amount Average € 322 € 572 amount Average term 33 months NA Average term 11 months 16 months 8,1 6,5 6,3 4,5 4,2 3,8 3,1 2,4 2,4 Volumes Volumes 1,7 disbursed disbursed ( € bn) ( € bn) 2015 2016 2017 2015 2016 2017 3Q Full year 3Q Full year * Average credit limit per active credit card 3

Expanding offline footprint and customer 1 base... Number of POS (‘000) 399 40 13 271 19 186 16 244 166 145 11 7 141 112 6 19 18 38 63 16 2 24 19 14 99 103 101 93 94 77 2012 2013 2014 2015 2016 2017 Q3 Russia China Other(1) Asia Active 6.8 8.4 9.1 12.5 20.1 28.7 clients (m) Home Credit helps retailers increase their sales and revenues by making loans easily accessible Cooperation with Home Credit also works with electronics manufacturers (Samsung, OPPO, Huawei, etc.) to partners support their marketing efforts 4 1 Other includes Czech Republic, Slovakia, Belarus, Kazakhstan

…and growing in Online 1 1 Growth in Sales Growth in Mobile applications penetration Social Media followers : 4,963,056 5

Leading positions in attractive markets 2 China Vietnam Established High growth 1 1 GDP growth 6.2% GDP growth 6.7% markets Net loans ( € m) 516 Net loans ( € m) 8,698 Russia Kazakhstan Czech Republic Slovakia Mature 1 2 2 1 markets GDP growth 2.5% GDP growth 3.3% GDP growth 0.2% GDP growth (0.2)% Net loans ( € m) 903 Net loans ( € m) 228 Net loans ( € m) 392 Net loans ( € m) 2,377 The Philippines United States of America Indonesia* India Strategic partnership Start-up 2 1 1 with Sprint high growth new regarding market GDP growth 7.0% GDP growth 5.0% GDP growth 6.8% financing services for Net loans ( € m) 364 Net loans ( € m) 173 Net loans ( € m) 142 mobile phones * Included portfolio which is not on HC books and is financed Note: Net loans for 2017 Q3 and real GDP growth for 2016 within JFS 6 Source for GDP: BMI Research

Leading edge risk management 3 Key aspects of risk management Strong risk performance NPL 117% 106% 116% 128% 120% • Highly automated process: 5.5m applications per month coverage • Paperless applications roll-out progressing • Systematic leverage of big data 17,8% • Proprietary customer database: 90m customers 16,7% 15,3% • Anti-fraud prevention using biometric measures 13,2% • Over 80 scoring models 12,2% • 22 thousand collections FTE’s; 9 3.3% collections efficiency (1) 10,0% • 7,7% Customer focused risk assessment: median time to yes is less than 7,6% 1 minute 6,2% 6,1% • Risk based pricing introduced progressively 2013 2014 2015 2016 2017 Q3 1 (1 – (Gross loans DPD 0-90 in previous month / Gross loans DPD 31-120 in current month)) 2 Impairment losses / Average net loans Cost of risk (2) NPL ratio (3) 3 End of period gross loans >90dpd / Total end of period gross loans 7

Strong and diversified funding 4 Interest rate gap profile ( € m) Diversified funding Funding sources (as of 30 September 2017) Interest position (as of 30 September 2017) Equity Liabilities Other 9% 5 385 Subordinated 3 337 4 073 3 864 Assets 4% liabilities 4 113 2% Gap Customer deposits 2 269 Debt 33% 763 1 187 securities 706 595 5% -312 -298 Div iversified ied fund nding ing -641 0 -1 378 -3 398 -3 580 -2 039 -2 502 -5 458 Loans received 48% Total: € 19.5 bn 8

Responsible lending at the heart of our practice 5 Our principles • Home Credit prides itself on being a responsible lender and an active participant in the communities in which it operates. • We practice in Financial Inclusiveness. Traditional lenders often do not adequately cater to the needs of those on lower incomes or first-time borrowers. The need for a developed credit history and collateralization are common barriers for individuals who would benefit from using formal financial services. This exclusion can have a detrimental effect on their financial and personal well-being, and hinders economic and social development. • We invest in financial Literacy. Educating our customers and the communities in which we operate is the foundation of our sustainability programme. • To help ensure customers make the right borrowing decisions based on their own circumstances, we have introduced a cooling-off period as standard across all our operations. • Our Safety Guarantee provides options for struggling clients to offer them additional time for repayment, payment holidays, late penalty waivers etc. 9

Meeting Agenda 1. STRATEGY AND BUSINESS 2. SUMMARY BY COUNTRY 3. KEY FINANCIAL INDICATORS