Stefan Kempf, founder and CEO why we do what we do Mission 4 Mio. - - PDF document

Stefan Kempf, founder and CEO

4 Mio. Freelancer und Kleinstunternehmer möchten sich auf ihre Tätigkeit fokussieren. Keiner kann sich einen CFO leisten und muss sich daher selbst um seine Finanzen kümmern. Es gibt aktuell keine digitale Lösung, die Unternehmer dabei intelligent unterstützt.

Mission

_________ We want to enable entrepreneurs to focus

• n their business and

be more successful by supporting with fast, smooth and intelligent financial solutions.

why we do what we do

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where we come from

2012: founded by S.Kempf / M.Bommer initially factoring for SME 2014: launch of Rechnung48 2015: initiating Finetrading 2015: entering leasing market 2016: adding Debt Collection Service 2017: launch of amacash 2018: stock listing m:access 2019: rebranding from Elbe to aifinyo 2020: merger Decimo Milestones Transaction Volume in EUR m

50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018 2019 aifinyo Decimo

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market opportunity driven by megatrends

4 m

Freelancer/SME prefer to focus on business rather than finance, but can’t afford a CFO

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Partly existing / we are working on it existing future

connecting financial needs by technology

Key to success will be beyond backend digitalisation to actively navigate our customers through their daily business activities by various integrated tools.

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revenue potential commercial retail clients

EUR 8 bn

revenue potential

4 m

unattended SME - commercial and corporate retail clients

1 m

target clients

• f banks

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Technology enables smooth processes in real-time Integration creates new possibilities to support customers and increase loyalty Perfect circumstances for smart financing solutions

In the short term, financing in commercial retail business will be dominated by few players. These players will have an unfair advantage due to cost efficient, highly selective, smooth and instant credit decision processes based on a huge pool of customer data.

digital & integration – key to success

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1-product provider multiple- product- provider low tech tech challenger

well positioned in a consolidating market

banks saving banks

(~1.700)

alternative financing

(~1.000)

fintechs

(~800)

• highly fragmented market, huge number of competitors
• banks lack technology and focus, regulatory burden
• alternative financing competitors lack product range and small ticket expertise
• fintechs are mainly to small for platform cost and lack product range
• currently high

pressure on market consolidation

• aifinyo is well

positioned, due to product range, size and tech focus

• first move through

merger with Decimo

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deal rational merger with Decimo

perfect fit because...

tech focus same target customers same product

merger objectives…

complimentary team leading tech platform for B2B retail financing platform maximise synergies strengthen market position add value to customers (cross & up-selling)

aifinyo creates value (interest / service fee margin of 15%) by matching the needs of its clients with the funding market.

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value creation

funding (banks) clients freelancer, start-ups, SME

Slow decision processes Prefer big companies due to rating Focus on big tickets due to high processing cost per ticket Low level of digitalization Need small amounts Fast money preferred due to lack of planning Used to instant response from retail market Open minded for digital solutions

aifinyo credit decision and processing platform Ø funding cost ~2% Ø return ~17%*

fast due to digital integration credit engine with ability to rate small tickets cost efficient for small tickets risk transformation

*as of 31.12.2019 incl. Decimo GmbH

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customer segments

by adj. revenue* by number of clients

Factoring (Freelancer) 28% Factoring (SME) 42% Finetrading 16% Leasing 13% Debt Collection/other 1% Factoring (Freelancer) 85% Factoring (SME) 9% Finetrading 4% Leasing 1% Debt Collection/other 1%

• Based on adj. revenues* Factoring for SME, Freelancer

and Finetrading are most relevant business units

• Distribution of revenues gets more equal weighted since

units other than Factoring (SME) grow faster

• Based on number of clients, most of them are in

Factoring Freelancer Segment (85%) followed by SME Factoring (9%) and Finetrading (4%)

• On average ~1.5K active clients per month with regard to

a new financing and ~4K clients with a running financing

*net of cost for purchased goods and depreciation for leased assets related to customer lending business

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short portfolio duration

focus on short term maturities

• aifinyo’ s portfolio consists largely of short term maturities
• Portfolio is dominated by trade receivables (factoring)

with average remaining lifetime of ~ 1 month (initial lifetime on average 42 days)

• About 80% of the portfolio with average remaining

lifetime of below 2 month

• Essentially no interest rate risk

average remaining portfolio lifetime in month due to short term portfolio duration aifinyo is able to quickly adopt to changing market environment

0,83 1,60 32,40

• 10

20 30 40 trade receivables (54% of portfolio) trade finance (25% of portfolio) lease receivables (21% of portfolio)

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covid-19 – short term impacts and actions

short term impacts action undertaken Target customers had less turnover Less need for working capital financing Huge competition by state banks (KFW) Higher default rates Reduction of exposure in critical industries Increase in credit standards / collateral Focus on short term maturities Price adjustments due to higher risk Active decrease of credit / risk portfolio Few investments by (cautious) clients

4,9% 59,8% 0,68% 6,35% 0,99% 13,77%

0% 1% 10% 100% 2015 2016 2017 2018 2019 1st hy 2020 1st hy 20 est

expenses for risk

% of adj. Revenues % of total assets % of revenues

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aifinyo has a rigorous risk management with long term experience. aifinyo applies digital / algorithm based models as well as expert systems.

covid-19 – short term rise in risk

• Risk costs historically fluctuated due to lower

diversification in early ears and increased mainly because auf finetrading and freelancer factoring, with higher provisions for expected defaults. Merger with Decimo will also lead to higher risk cost (by higher fees)

• Risk cost are a historical minor part of adj. revenues (~

5%)

• Due to corona crisis, and short term lending structure,

defaults significantly increased in 1st hy 2020 (€ 2.4 m in 1st hy 2020 vs. 0.4m in 2019)

• Most of the unexpected risk occurred in tourism sector.

We significantly reduced industry exposure here as well as in other corona affected industries

• Risk expenses are considered in the P&L in line 6. other
• perating expenses and line 9. depreciation of current

assets

• Since we very quickly adjusted our credit process, we

assume significantly lower risk costs in 2nd hy 2020

estimate covid-19

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1st hy 20 financial figures (incl. Decimo)

transaction volume

in EUR m

• adj. revenues*

in EUR m

*net of cost for purchased goods and depreciation for leased assets related to customer lending business

turnover

in EUR m

EBT

in EUR m

• Due to corona less

transaction volume especially in Q2

• Downturn stopped end of

Q2/20 July 20 7% above June 20

• Loss in revenues mainly

due to Q2 because of fewer business in finetrading and leasing

• Due to pricing adjustments

and product mix change, loss in adj. revenues was below loss in turnover

• Despite first effects in

Feb./Mar. Q1/20 was still 10% above Q1/19

• EBT suffered especially

due to unexpected losses and one time integration cost of Decimo

• R&D expenses are not

activated and expensed

21 17

• 1. hy 2019
• 1. hy 2020

153 142

• 1. hy 2019
• 1. hy 2020

4,2 3,8

• 1. hy 2019
• 1. hy 2020
• 0,4
• 2,6
• 1. hy 2019
• 1. hy 2020

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key (annual) financial figures (incl. Decimo)

transaction volume

in EUR m

• adj. revenues*

in EUR m

*net of cost for purchased goods and depreciation for leased assets related to customer lending business

turnover

in EUR m

EBT

in EUR m

• Strong growth in

transaction (financing) volume

• Dominated by factoring,

followed by finetrading and leasing

+35%

• Strong growth as well in

turnover

• Dominated by finetrading

(gross accounted for in turnover, vs. e.g. factoring

• nly accounts for the fee)
• Adj. revenues is most

important internal financial KPI

• Revenues are adjusted for

cost for purchased goods and leasing depreciation

• Despite high IT/R&D

spending's aifinyo was always profitable

• Merger with Decimo will

lead to synergies increasing EBT

185 248 320

2017 2018 2019

aifinyo Decimo total

14 29 44

2017 2018 2019

aifinyo Decimo total

4,8 6,8 8,7

2017 2018 2019

aifinyo Decimo total

• 208

44

• 917

2017 2018 2019

aifinyo Decimo total

50 100 150 200 250 300 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 number of clients transaction volume in bn €

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covid-19 – long term benefits expected

decrease in competition due to reduction in number of banks expected alternative financing will profit (German factoring market) expected, that banks will restrict lending (change in size of corporate credit portfolio)

20 40 60 80 100 120

• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

last recession last recession last recession

competition need for consolidation demand for alternative financing need for unique digital solutions

Sources: Deutscher Bankenverband, statista, Deutscher Factoringverband

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Co-partner and founder of aifinyo. Masters degree in finance and controlling from the University of Applied Sciences in Mainz. Before founding aifinyo, managing director and executive board member for several German factoring companies. Co-partner and founder of aifinyo. M.Sc. in Banking and Finance as well as a LL.M. from Frankfurt School of Finance. Before founding aifinyo, working in capital markets for a major bank and in the German leasing and trade receivables industry.

Stefan Kempf Matthias Bommer

Joining aifinyo from Decimo Serial Entrepreneur (INTERSHOP, Pixaco, Mobizcorp), Institute for Applied Informatics (InfAI) at the University of Leipzig. Expert in machine Learning and decision Systems.

• Prof. Dr. Roland Fassauer

complimentary management team

Finance Tech Sales

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share price with upside potential

share Price in EUR key facts number of shares: 3,384,745 market cap: EUR 108.3 m ISIN: DE000A2G8XP9 ticker: ebe segment: m:access indices: m:access All-Share Listing: Frankfurt, Munich, Xetra research Warburg buy conferences Börse München 14.10.2020 Warburg/Berlin 26.-27.11.2020 MKK/München 08.-09.12.2020

5 10 15 20 25 30 35 40

• Dez. 18 Mrz. 19
• Jun. 19
• Sep. 19 Dez. 19
• Mrz. 20
• Jun. 20

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stable shareholder structure

shareholder structure strong management commitment trading volume intended to be increased Management and founding partners are highly committed with a high stake in

• wnership structure.

Due to that, freefloat is currently practically not-existent. aifinyo intends to significantly increase trading volume by the following measures:

• increase visibility (research/conferences)
• increase of capital / issuance of new

shares in upcoming years

• Appointment of professional market

maker

Stefan Kempf (Management) 24% Matthias Bommer (Management) 24% Markus Wenner (Founding Parntner) 11% Roland Fassauer (Management) 7% Other Investors (<10%) 33% Employees 1%

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steps for further growth

active role in market consolidation platform-improvements new tools & payments teaming with partners promote brand

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appendix

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corporate structure

aifinyo AG Decimo Gmbh aifinyo lease GmbH aifinyo finance GmbH aifinyo payments GmbH Elbe Inkasso GmbH

100% factoring / trade receivables financing leasing & hire purchase factoring / trade receivables financing payment solutions debt collection services

• Purchase of undue

trade receivables from freelancer, start- ups and SME’s

• Usually purchase of

receivables (30-90 days) without recourse and discloser of assignment

• Collateral receivables

which are predominantly insured against default

• Purchase of undue

trade receivables from freelancer, start- ups and SME’s

• Usually purchase of

receivables (30-90 days) without recourse and discloser of assignment

• Collateral receivables

which are predominantly insured against default

• Financing solution for

fixed assets

• aifinyo purchases

goods and rents them to clients (6-60 month)

• Collateral receivables

against clients, leased assets

• Not operative yet.
• aifinyo intends to add

digital payment solutions in the future to the product range

• Solution to improve

liquidity of customer

• Collection of overdue

receivables

• Usually no risk

exposure

factoring (BaFin) &, Inkasso licence (RDG) Leasing & factoring (BaFin) licence factoring (BaFin) &, Inkasso licence (RDG) in application process for payment licence (ZAG) Inkasso licence (RDG)

aifinyo finetrading Gmbh

finetrading / trade finance

• Financing solution for

working capital mainly for e-commerce, SME & start-ups

• aifinyo purchases

goods and sells them to clients with adequate payment terms (30-180 days)

• Collateral receivables

against clients, purchased goods

n.a.

*aifinyo currently assesses synergy potentials by merging several subsidiaries

Supervisory board: Florian Renner (chairman) Markus Wenner, Andreas Duden, Bertram Köhler

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balance sheet (june 2020)

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profit and loss statement (june 2020)

*Increase in net present value (Substanzwert) of lease portfolio not included

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This presentation contains forward-looking statements. Forward-looking statements are statements that are neither facts nor a description of past events; they comprise statements relating to our assumptions and

• expectations. Each statement made in this presentation that reflects our intentions, assumptions, expectations or

forecasts as well as the underlying presumptions is a forward-looking statement. These statements are based on planning figures, estimates and forecasts currently available to the Board of Directors of aifinyo AG. Accordingly, forward-looking statements refer exclusively to planning data, estimates and forecasts at the time at which they are made. We assume no responsibility to further develop or modify such statements in the event of fresh information being available or future events occurring. By their very nature, forward-looking statements imply risks and uncertainty

• factors. A large number of key factors can contribute towards actual events varying quite substantially from

forward-looking statements. Such factors include the condition of the financial markets and the regional focal points of our investment activities.

disclaimer

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aifinyo AG Tiergartenstraße 8 01219 Dresden T: 0351 8969 3310 F: 0351 8969 3315 E-Mail: info@aifinyo.de Web: www.aifinyo.de

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