Home Credit Presentation of 2016 results 1 March 2017 Disclaimer - - PowerPoint PPT Presentation

Home Credit

Presentation of 2016 results 1 March 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

• pinion 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

Highlights Key metrics and business mix (€)

• Leading consumer finance lender focused on key growth markets:

− China: the largest and fast growing market with €5.3bn

• f loans

− Asia: (Vietnam, Indonesia, India and Philippines) – high growth, early stage businesses with the exception

• f Vietnam that is showing strong profitability

− Russia: historically the largest market with €2.3bn of loans and €2.2bn of customer deposits − Other: (Czech Republic, Slovakia and Kazakhstan) which are mature, profitable businesses

• Number1 in point-of-sale lending in most of markets
• Multichannel customer-centric distribution with 271 thousand

distribution points and substantial online presence

• 20m customers and 120 thousand employees
• Global footprint covers 10 countries with 3.5bn population
• Leading edge risk management leveraging big data and biometrics
• Strong and diversified funding

2013 2014 2015 2016 Deposits (bn) 5.1 2.9 4.9 5.4 Gross loans (bn) 8.4 6.0 6.6 10.7 Equity (bn) 1.5 1.2 1.2 1.5 Net income (m) 324.4 (60.5) (41.6) 210.2 Net interest margin 19.8% 18.0% 15.6% 14.0% Cost of risk 16.7% 17.8% 13.2% 7.6% RoAE 20.5% (4.3%) (3.3%) 16.2% # of distribution points (000) 145 166 186 271 # of active customers (m) 8.5 9.1 12.5 20.1 Total net loan by type: €9.9bn Total net loan by country: €9.9bn

1

China 54.5% Russia 23.9% Czech Republic and Slovakia 10.6% Asia 7.4% Rest CIS 3.0% Cash loans 50.6% Consumer durables loans 40.5% Other 8.9%

Meeting Agenda

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

Home Credit: business highlights

1

Customer-centric multichannel distribution with strong cross-sell

2

Expanding offline footprint and growing

• nline distribution

3

Leading positions in attractive markets

4

Leading edge risk management

5

Strong and diversified funding

2

Customer-centric multichannel distribution with strong cross-sell

Acquisition: POS loan and cash loan walk-in Cross-sell

1

Distribution

• 271 thousand distribution points (POS, branches)
• 300 e-shop agreements
• Own websites and mobile apps
• Call centres

Products Consumer durables loan Cash loan Purpose Electronics, white goods, Two wheelers General purpose Average amount €320 €390 Average term 12 months 12 months Volumes disbursed (€bn) Distribution

• Existing 70m customer database
• Up to 67% of customers eligible for cross-sell within 18

months

• Approximately 20% of customers take either cash loan or

credit card within 36 months. Products Cash loan Credit cards Purpose General purpose General purpose Average amount €1,750 €1,100* Average term 38 months NA Volumes disbursed (€bn)

3

4.2 3.2 3.8 6.5 2013 2014 2015 2016 5.1 3.5 2.4 4.5 2013 2014 2015 2016

*Average credit limit per active

credit card

77 99 103 93 94 19 24 38 63 141 14 16 18 19 16 2 6 7 11 19 112 145 166 186 271 2012 2013 2014 2015 2016 Russia China Other(1) Asia

Expanding offline footprint and customer base...

Home Credit helps retailers increase their sales and revenues by making loans easily accessible Home Credit also works with electronics manufacturers (Samsung, OPPO, Huawei, etc.) to support their marketing efforts Coopera rati tion with th partn tners

Number of POS (‘000)

Active clients (m) 6.8 8.4 9.1 12.5 20.1 24.7% CAGR

2

1 Other includes Czech Republic, Slovakia, Belarus, Kazakhstan

4

…and growing online distribution

• Over 5m online loan applications
• Over 700ths contracts sourced via online channels
• 5.5m Home Credit app downloads
• 2.5m social media followers
• 300 e-shop partnership agreements signed
• Full usage of our customers’ online digital footprints – through
• nline risk evaluation, online targeted marketing, and the

individually tailored products

• Grow digital walk-in cash loans by generating initial

leads online

• Expand in e-shop loans and digital revolving loans
• Develop innovative products such as our Zonky P2P

To date Strategy 5

2

Leading positions in attractive markets

3

Established High growth markets Mature markets Start-up high growth market Vietnam

1 1

China

1

Czech Republic

2

Slovakia

1

Russia

2

Kazakhstan

GDP growth 6.2% Net loans (€m) 430 GDP growth 6.7% Net loans (€m) 5,313 GDP growth 0.2% Net loans (€m) 334 GDP growth (0.2)% Net loans (€m) 2,326 GDP growth 3.3% Net loans (€m) 258 GDP growth 2.5% Net loans (€m) 771

Indonesia* India

2

new

United States of America The Philippines

1 2

GDP growth 6.8% Net loans (€m) 68 GDP growth 5.0% Net loans (€m) 87 Strategic partnership with Sprint regarding financing services for mobile phones GDP growth 7.0% Net loans (€m) 195

Note: Net loans and real GDP growth for 2016 Source for GDP: BMI Research

6

*Included portfolio which is not

• n HC books and is financed

within JFS

Leading edge risk management

• Highly automated process: 5.2m applications per month
• Paperless applications being rolled out
• Systematic leverage of big data:

− Credit bureaus − Telco databases − Social security databases − Payment behaviour − Demographic predictors − Social media and other sources

• Proprietary customer database: 70m customers
• Anti-fraud prevention using biometric measures
• Over 80 scoring models
• 16 thousand collections FTE’s; 92.3% collections

efficiency(1)

• Customer focused risk assessment: median time to yes is

1.04 minutes Key aspects of risk management Strong risk performance

1 (1 – (Gross loans DPD 0-90 in previous month / Gross loans DPD 31-120 in current month)) 2 Impairment losses / Average net loans 3 End of period gross loans >90dpd / Total end of period gross loans

NPL coverage

4

7

128% 116% 106% 117% 16.7% 17.8% 13.2% 7.6% 12.2% 15.3% 10.0% 6.1% 2013 2014 2015 2016 Cost of risk (2) NPL ratio (3)

Div iversified ied fund nding ing

Strong and diversified funding

Div iversified ied fund nding ing Fundin ding g gap (€bn) n)

Total: €14.7bn Funding sources (as of 31 Dec 2016)

8

5

Net position (as of 31 Dec 2016) 0.0 (1.2) 1.3 0.8 0.6 <3m 3m – 1y 1 – 5y >5y No maturity Net position Bank loans 44% Customer deposits 37% Subordinated liabilities 3% Debt securities 2% Other 4% Equity 10%

Meeting Agenda

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

644 1,057 2,219 5,313 2013 2014 2015 2016 75 64 128 196 2013 2014 2015 2016

China

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

Net loans Net profit

110% 139% 103% 112% 100% 53%

% of GDP 12.7% 11.1% 9.4%

1 Euromonitor

9

64% (15)% 42%

8.3% 1,736 2,468 5,002 10,621 2013 2014 2015 2016 24,001 37,793 63,391 141,315 2013 2014 2015 2016 686 847 1,078 1,334 2013 2014 2015 2016

National roll out progressing as per plan combined with a densification of the network Strong growth combined with strong profitability

15 18 22 26 2013 2014 2015 2016 440 861 1,129 1,769 2013 2014 2015 2016 13.6 26.2 25.8 46.3 2013 2014 2015 2016 148 200 249 430 2013 2014 2015 2016

Vietnam

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

24% 72% 31% 57% (3%) 79%

% of GDP 13.6% 12.7% 11.2%

1 Euromonitor

10

35% 96% 96%

10.2% 4,578 4,754 4,955 6,834 2013 2014 2015 2016 Net loans Net profit

Strong growth combined with strong profitability

5,830 3,125 1,957 2,326 2013 2014 2015 2016

Russia

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

(37)% 16% (11)% (12)%

% of GDP 6.3% 6.7% 8.1%

1 National Bank of Russia

11

(46)% (10)%

164.5 (117.1) (145.9) 67.2 2013 2014 2015 2016 4,659 4,198 3,723 3,268 2013 2014 2015 2016 98,703 103,407 92,980 93,996 2013 2014 2015 2016 104 91 88 2014 2015 2016 Net loans Net profit

Turnaround post crisis completed as demonstrated by increasing volumes and return to profitability

481 456 260 334 2013 2014 2015 2016 60.9 34.6 34.4 45.8 2013 2014 2015 2016

Kazakhstan

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

(43)% 28% 2% 21%

% of GDP 5.6% 6.4% 6.5%

(1)% 33%

1 National Bank of Kazakhstan

12

(5)% (43)% 8%

6.1% 609 661 677 817 2013 2014 2015 2016 4,384 5,370 6,124 7,934 2013 2014 2015 2016 6.5 7.6 7.7 7.5 2013 2014 2015 2016 Net loans Net profit

Net loans increased post 2015 crisis. Strong profitability, even during the crisis, demonstrates the strength of the franchise

64 57 682 771 2013 2014 2015 2016 19.8 10.5 22.5 33.2 2013 2014 2015 2016

Czech Republic

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

% of GDP 4.8% 4.7% 4.6%

1,091% 13% 112% 49% 1% (7)%

1 Czech National Bank

13

(11)% (46)% (38)%

4.8% 517 323 327 303 2013 2014 2015 2016 5,805 5,818 5,998 4,917 2013 2014 2015 2016 7.2 7.2 7.8 8.2 2013 2014 2015 2016 Net loans Net profit

Strong performance of the consumer lending business and of Air Bank Air Bank continues to redefine how retail banking is done and to be “the bank you can like”

India

Key financial data (€m) Active clients (000’) Market opportunity (consumer lending) (€bn)(1) #2 in POS

212% 173% 305% 176%

Number of POS

% of GDP 7.1% 6.2% 5.8%

1 Euromonitor

14

113% 137%

4.9% 11 23 71 195 2013 2014 2015 2016 (7.8) (10.6) (26.1) (61.1) 2013 2014 2015 2016 51 121 490 1,351 2013 2014 2015 2016 784 1,302 3,289 5,789 2013 2014 2015 2016 94 109 125 145 2013 2014 2015 2016 Net loans Net profit

Indian franchise is being roll out nationwide Home Credit intends to continue investing in the coming years to expand the network in India and gain relevant market leadership

Indonesia

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #2 in POS

255% 255% 150% 200%

% of GDP 10.3% 10.5% 10.7%

1 Euromonitor

15

80% 118%

10.7% 3.8 6.9 24.5 87.1 2013 2014 2015 2016 (5.6) (11.2) (15.3) (19.2) 2013 2014 2015 2016 31 68 169 508 2013 2014 2015 2016 578 758 1,710 4,423 2013 2014 2015 2016 68 79 86 91 2013 2014 2015 2016 Net loans* Net profit

Significant investment done in 2016 to grow the franchise in 2016 where our market share by now is quite close to the

• ne of the market leader

*Included portfolio which is not on HC books and is

financed within JFS

The Philippines

Key financial data (€m) Active clients (000’) Number of POS Market opportunity (consumer lending) (€bn)(1) #1 in POS

292% 384% 237% 336%

% of GDP 7.7% 7.4% 7.0%

1 Euromonitor

16

656% 1,407%

7.0% 0.5 3.6 13.9 67.5 2013 2014 2015 2016 (3.5) (7.2) (13.8) (16.0) 2013 2014 2015 2016 2 35 119 520 2013 2014 2015 2016 58 366 840 1,951 2013 2014 2015 2016 15 16 19 21 2013 2014 2015 2016 Net loans Net profit

Significant investment done in the past years to gain market leadership Home Credit intends to continue investing to develop a nationwide coverage

Meeting Agenda

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

2,542 1,949 1,619 2,000 2013 2014 2015 2016

Strong financial performance

Strong loan growth (€bn) n) Resilient ilient reven venue ue (€m) m) Recove

• vering

g prof

• fitab

abil ility

18.0% 14.0% 15.6%

17

19.8%

Recovering profitability (€m) m) Cost of ris isk

(4.3)% 16.2% (3.3)% 20.5% RoAE NIM 324.4 (60.5) (41.6) 210.2 164.5 (117.1) (145.9) 67.2 2013 2014 2015 2016 Group Russia 16.7% 17.8% 13.2% 7.6% 2013 2014 2015 2016 7.2 5.1 5.8 9.9 2013 2014 2015 2016

Decrease in NIM compensates by decline in CoR Group returns to profitability post Russian recovery

Profit & Loss: €1.2bn earned in 2011 – 2016(1)

(€m) 2011 2012 2013 2014 2015 2016 Net interest income 627 1,057 1,762 1,377 1,207 1,532 Net fee income 238 597 618 420 304 418 Other operating income 40 119 162 152 108 50 Operating income 905 1,773 2,542 1,949 1,619 2,000 Operating expenses (403) (655) (924) (871) (887) (1,115) Impairment losses (167) (478) (1,186) (1,116) (725) (563) Profit before tax 336 644 439 (37) 9 325 Income tax expense (95) (138) (114) (23) (50) (115) Profit from continuing operations 241 506 324 (60) (42) 210 Attributable to equity holders 231 506 327 (57) (40) 213 Key performance indicators NIM 20.5% 18.9% 19.8% 18.0% 15.6% 14.0% CIR 44.6% 36.9% 36.4% 44.7% 54.8% 55.7% CoR 6.8% 11.0% 16.7% 17.8% 13.2% 7.6%

18

1 Cumulative net profit attributable to equity holders over period for 2011 – 2016

Balance sheet: Strong capital and asset quality

(€m) Assets 2014 2015 2016 CAGR 2014 – 2016 Cash and cash equivalents 866 1,343 2,412 67% Financial assets 453 1,501 1,252 66% Due from banks 172 391 397 52% Net loans 5,060 5,835 9,866 40% Other assets 486 586 777 26% Total assets 7,037 9,656 14,704 45% Liabilities Customer deposits 2,890 4,909 5,401 37% Due to banks 1,434 2,331 6,427 112% Debt securities 575 373 320 (25)% Subordinated liabilities 542 428 416 (12)% Other liabilities 357 419 639 34% Total liabilities 5,798 8,460 13,202 51% Total equity 1,239 1,196 1,501 10% abs ∆ 2014 – 2016 NPL ratio 15.3% 10.0% 6.1% (9)% NPL coverage ratio 106% 116% 128% 22%

19

Appendix

• A team of recognized leaders in their fields, committed to high standards of corporate governance

Home Credit’s management team

20

Jiri ri Smejc jc CEO Tomas Kocka Deputy CEO Jean-Pa Pascal Duvieu ieusart rt Funding & Capital Markets Mel Carv rvil ill CGIRO Pavel Vyhnalek Regional Executive Director Pavel Rozehnal CLO Radek Pluhar CRO Khalid lid Husseini CIO Petr tr Kohout CFO Tomas Jirg rgl Regional Executive Director David id Minol Regional Executive Director Miroslav lav Boubli lik Head of Special Projects Daniel iela Raz Razim imova CHRO Ludek Mraz Head of CRM

Industry Listed Value Telecom



CZK71bn (market value of PPF’s 84.06% share) Telecom



CZK18bn (book value) Consumer finance



€1.5bn (book value) Real estate



€852m (book value) Metals / mining



£545m (market value of PPF’s 12.92% share)

Strong support from PPF group

Key financial results (as at 30 June 2016)

• Total assets: €24.2bn
• Equity: €5.4bn
• Net profit: €248m

Ownership Key investments Petr Kellner 98.92% Ladislav Bartoníček 0.54% Jean-Pascal Duvieusart 0.54% 21

Thank you