FERRATUM GROUP RESTATED INTERIM RESULTS FOR 2018 DUE TO ADJUSTMENT ON CREDIT LOSS PROVISIONING IN CONNECTION WITH IFRS 9 ADOPTION

Transcription

1 FERRATUM GROUP RESTATED INTERIM RESULTS FOR 2018 DUE TO ADJUSTMENT ON CREDIT LOSS PROVISIONING IN CONNECTION WITH IFRS 9 ADOPTION Ferratum Oyj publishes restated unaudited results for the 3 months ended 31 March 2018, ( 3 Month ), the 6 months ended 30 June 2018 ( 6 Month ), and the 9 months ended 30 September 2018 ( 9 Month ).These restatements are required following a review of the implemented risk provision model and assumptions that were implemented as per 1 January 2018 as part of the adoption of IFRS 9 accounting standards for the Group s 2018 fiscal year. As of 1 January 2018, Ferratum Group adopted the accounting standard IFRS 9 Financial Instruments which covers, among others, impairment of accounts and loan receivables and introduced an expected credit loss model, replacing IAS 39. The overall impact to the credit loss provisions as at 1 January 2018 was calculated and reported as part of the iterim results for the first 3 months ended 31 March 2018 as an increase of EUR 9.3 million as follows: Credit loss provisions as at 1 January, reported for the first 3 months, ending 31 March Dec 2017 IAS 39 1 Jan 2018 Reported IFRS 9 Reported impact GBV* Credit Loss NBV** GBV* Credit Loss NBV** GBV* Credit Loss NBV** Provisions Provisions Provisions Current 216,988 (10,159) 206, ,368 (4,695) 153,673 58,620 (5,464) 53, days due 29,895 (7,668) 22,227 72,398 (17,649) 54,749 (42,503) 9,981 (32,522) days due 20,904 (9,228) 11,676 21,474 (12,768) 8,706 ( 570) 3,540 2,970 >180 days due 68,456 (51,782) 16,674 84,004 (52,988) 31,016 (15,548) 1,206 (14,342) Sum 336,243 (78,837) 257, ,243 (88,100) 248,143-9,263 9,263 * Gross Book Value of Accounts Receivables ** Net Book Value of Accounts Receivables The reported overall impact of the IFRS 9 adoption on equity was lower than the increased credit loss provisions, as the adjustment was offset by the impact of deferred taxes of EUR 1.7 million reflecting the timing difference of recognizing the loss allowance in accounting and taxation. Accordingly, the adoption of IFRS 9 was previously published to have resulted in a one-off accounting charge of EUR 7.6 million which was debited directly to the equity of the Group as at 1 January Ferratum Group Annual Report 2018 Reinstated Interim Results

2 During the 2018 annual closing, the Group carried out a full review of the implemented credit loss provisioning model and came to the conclusion that the model has to be enhanced to be more accurate in the following aspects: 1. The parameters of default definition has been tightened from 91 to 61 days past due date for Primeloan, SME loans and PlusLoans, therefore aligning with the parameters set for Credit Limit. 2. Data extraction, discounting and mathematical modelling for Credit Limit, Primeloan, SME loans and PlusLoan has been corrected for accuracy. These points impact the basic methodology of the credit loss provisioning model and are therefore to be applied for the full year 2018 as well as the opening balance In accordance with IAS 8, the Group has corrected the misstatement in opening balance related to IFRS 9 adoption as follows: Credit loss provisions as at 1 January, reported for the first 3 months, ending 31 March Dec 2017 IAS 39 1 Jan 2018 IFRS 9 impact GBV*Credit Loss GBV* Credit Loss NBV** NBV** GBV* Credit Loss NBV** Provisions Provisions Provisions Current 158,368 (4,695) 153, ,368 (12,810) 145,558-8,115 8, days due 72,398 (17,649) 54,749 72,398 (20,720) 51,678-3,071 3, days due 21,474 (12,768) 8,706 21,474 (12,734) 8,740 - (34) (34) >180 days due 84,004 (52,988) 31,016 84,004 (53,485) 30, Sum 336,243 (88,100) 248, ,243 (99,749) 236,495-11,649 11,649 * Gross Book Value of Accounts Receivables ** Net Book Value of Accounts Receivables The restated credit loss provisions increase the one-off accounting adjustment of the credit loss provisions from EUR 9.3 million by EUR 11.6 million to EUR 20.9 million. The overall impact of the IFRS 9 adoption on equity is lower than the increased risk provision, as it is offset by the deferred taxes reflecting the timing difference of these reserve changes on profitability. After deducting deferred tax effects of EUR 5.8 million an adjustment of EUR 15.1 million is to be debited directly to the equity of the Group as per 1 January 2018 instead of the previously reported EUR 7.6 million. In addition to the restatement of the opening balance adjustment as per 1 January 2018 for equity, deferred taxes and the value of accounts receivables, the Group has also restated all subsequently published quarterly results and balance sheets as follows: Consolidated Statement of Financial Position 31 Mar Jun Sep 2018 Assets Deferred income tax assets 8,187 10,123 10,029 Total non-current assets 41,441 46,641 48,701 Accounts receivable - loans to customers 254, , ,237 Total current assets 398, , ,776 Total assets 439, , ,476 Equity and liabilities Total equity 95,417 93,374 98,369 Total equity and liabilities 439, , ,476 Equity ratio % Net debt to equity ratio Reinstated Interim Results Fe r ratum Group Annual Report

3 The above described corrections on the IFRS 9 credit loss provisioning model trigger also changes in the recorded impairments (credit losses) in the income statement in the reported interim results as follows: Consolidated Statement of Financial Position 1 Jan Mar Jan Jun Jan Sep 2018 Revenue 61, , ,194 s on loans -18,986-42,162-65,400 s on loans Reported -18,866-40,609-63,996 Difference ,553-1,404 Operating profit 10,048 16,591 25,429 Profit before income tax 6,506 8,175 13,706 Income tax expense ,227-2,055 Profit for the period 5,530 6,948 11,650 Earnings per share, diluted Net debt to equity ratio Based on the more accurate IFRS 9 model Ferratum Group has a stricter risk forecast model that improves substantially the quality of expected earnings in the foreseeable future. Following the adjustments to the risk provisioning model outlined above, Ferratum considers its procedures on calculating potential loan losses as fully compliant with IFRS 9 and a highly sophisticated version of a credit loss prediction model. 3 Ferratum Group Annual Report 2018 Reinstated Interim Results

4 Q1 Reinstated Interim Results Fe r ratum Group Annual Report

5 Consolidated Income Statement for the Period 1 January to 31 March, 2018 Revenue 61,442 Other income 6 s on loans -18,986 s on loans Reported -18,866 Difference -120 Operating expenses: Personnel expenses -10,826 Selling and marketing expenses -10,028 Lending costs -2,839 Other administrative expenses -407 Depreciations and amortization -1,082 Other operating expenses -7,233 Operating profit 10,048 Financial income 15 Finance costs -3,557 Finance costs - net -3,542 Profit before income tax 6,506 Income tax expense -976 Profit for the period 5,530 Earnings per share, basic 0.26 Earnings per share, diluted 0.25 Profit attributable to: owners of the parent company non-controlling interests (NCI) 5,530 Consolidated Statement of Compehensive Income for the Period 1 January to 31 March, 2018 Reported Change Profit for the period 5,530 5, Other comprehensive income Items that may be subsequently reclassified to profit or loss Translation difference Total items that may be subsequently reclassified to profit or loss Total comprehensive income 6,003 6, Allocation of total comprehensive income to: - owners of the parent company 6,003 6, non-controlling interests (NCI) Ferratum Group Annual Report 2018 Q1

6 Consolidated Statement of Financial Position 31 Mar 2018 Assets Non-current assets Property, plant and equipment 3,484 Intangible assets 20,998 Government stocks 8,772 Deferred income tax assets 8,187 Total non-current assets 41,441 Current assets Accounts receivable - loans to customers 254,597 Other receivables 7,852 Derivative assets 924 Income tax assets 411 Cash and cash equivalents (excluding bank overdrafts) 134,688 Total current assets 398,472 Total assets 439,913 Equity and liabilities Equity attributable to owners of the parent Share capital 40,134 Treasury shares -142 Reserves -2,727 Unrestricted equity reserve 14,708 Retained earnings Total equity 95,417 of which related to non-controlling interests - Liabilities Non-current liabilities Borrowings 64,185 Other payables - Deferred income tax liabilities 117 Total non-current liabilities 64,302 Current liabilities Income tax liabilities 1,366 Deposits from customers 192,677 Borrowings 71,130 Derivative liabilities 604 Trade payables 2,634 Other current liabilities 11,783 Total current liabilities 280,194 Total liabilities 344,496 Total equity and liabilities 439,913 Equity ratio % 21.7 Net debt to equity ratio 2.20 Q1 F erratum Group Annual Report

7 Business Segments in 3M 2018 Microloans PlusLoans Credit Limit SME Other* Total Revenue 11,058 15,852 28,901 5, ,442 Share in Revenue, % Other income Directly attributable costs: s -4,708-5,234-7,886-1, ,986 s Reported -4,703-5,197-7,820-1, ,866 Difference Marketing -1,293-2,568-4,371-1, ,028 Attributable Profit Margin 5,058 8,052 16,648 3, ,435 Attributable Profit Margin, % Non-directly attributable costs: Personnel expenses -1,852-2,655-4, ,826 Lending costs , ,839 Other administrative expenses Depreciation and amortization ,082 Other operating income and expenses -1,253-1,797-3, ,233 Total Non-directly attributable costs -3,802-5,450-9,937-1,894-1,304-22,386 Operating profit 1,256 2,602 6,711 1,234-1,755 10,048 Gross Profit Margin, % Unallocated finance income Finance expenses , ,403 Unallocated finance expense ,154 Finance costs, net , ,542 Profit before income tax 973 1,978 5, ,775 6,506 Net Profit Margin, % Accounts receivable - loans to customers 29,969 66, ,140 37,194 2, ,597 Unallocated assets 185,316 Unallocated liabilities 344,497 Accounts receivable - loans to customers 31 Mar 2018 IFRS 9 Accounts receivable - loans to customers (gross) 376,503 Less: provision for impairment of loan receivables 121,906 Less: provision for impairment of loan receivables Reported (111,048) Difference 232,954 Accounts receivable - loans to customers (net) 498,409 7 Ferratum Group Annual Report 2018 Q1

8 Ageing analysis restated GBV* Provision for Provision for Reported 1 Jan 2018 Difference NBV** ILCR***, % Current 158,368-12,054-4,695-7, , % 1-90 days due 72,398-20,433-17,649-2,784 51, % days due 21,474-12,737-12, , % > 181 days due 84,004-53,433-52, , % Total 336,243-98,657-88,100-10, , % 31 Mar 2018 GBV* Provision for Provision for Reported Difference NBV** ILCR***, % Current 165,041-11,632-4,518-7, , % 1-90 days due 74,479-19,879-16,765-3,114 54, % days due 25,334-14,792-14, , % > 181 days due 111, ,905-74,984-48,921-12, % Total 376, , ,048-10, , % Jan Mar 2018 Provision for impairment on January 1-78,837 IFRS9 implementation impact -20,912 IFRS9 implementation impact Reported -9,263 Difference -11,649 s on loans -18,986 s on loans Reported -18,866 Difference -120 Amounts fully reserved and booked out -3,171 Amounts fully reserved and booked out Reported -4,082 Difference 911 Provision for impairment on March ,906 Q1 F erratum Group Annual Report

9 Changes in equity Jan Mar 2018 Share capital Treasury shares Unrestricted equity reserve Other reserves Translation differences Retained earnings Equity holders of parent NCI Total equity Opening balance 1 Jan, 2018 (audited) Comprehensive income Profit or loss Other comprehensive income Currency translation difference: Total comprehensive income 40, , ,957 52, , ,243 5,530 5, , , ,602 6, ,003 Transactions with owners Distribution of funds IFRS 9 Impact -15,164-15, ,164 Share-based payments Other changes 112-1,214-1, ,102 Total transactions with owners Total equity 31 Mar, 2018 (unaudited) ,941-15, ,829 40, , ,556 43,444 95, ,417 Earnings per share restated Jan Mar 2018 Profit for the reporting period attributable to owners of the parent Profit for the reporting period attributable to owners of the parent Reported Difference -103 Weighted average number of ordinary shares in issue Adjustment for calculation of diluted earnings per share: Options 277 Diluted weighted average number of ordinary shares in issue Earnings per share, basic 0.26 Earnings per share, diluted Ferratum Group Annual Report 2018 Q1

10 Q2

11 Consolidated Income Statement for the Period 1 January to 30 June, 2018 Revenue 124,232 Other income 16 s on loans -42,162 s on loans Reported -40,609 Difference -1,553 Operating expenses: Personnel expenses -22,151 Selling and marketing expenses -19,734 Lending costs -5,756 Other administrative expenses -1,074 Depreciations and amortization -2,338 Other operating expenses -14,442 Operating profit 16,591 Financial income 92 Finance costs -8,508 Finance costs - net -8,416 Profit before income tax 8,175 Income tax expense -1,227 Profit for the period 6,948 Earnings per share, basic 0.32 Earnings per share, diluted 0.32 Profit attributable to: owners of the parent company non-controlling interests (NCI) 6,948 Consolidated Statement of Compehensive Income for the Period 1 January to 30 June, 2018 Reported Change Profit for the period 6,948 8,269-1,321 Other comprehensive income Items that may be subsequently reclassified to profit or loss Translation difference Total items that may be subsequently reclassified to profit or loss Total comprehensive income 7,421 8,621-1,200 Allocation of total comprehensive income to: - owners of the parent company 7,421 8,621-1,200 - non-controlling interests (NCI) Ferratum Group Annual Report 2018 Q2

12 Consolidated Statement of Financial Position 31 Mar 2018 Assets Non-current assets Property, plant and equipment 4,148 Intangible assets 23,677 Government stocks 8,693 Deferred income tax assets 10,123 Total non-current assets 46,641 Current assets Accounts receivable - loans to customers 269,989 Other receivables 5,730 Derivative assets 1,341 Income tax assets 606 Cash and cash equivalents (excluding bank overdrafts) 170,820 Total current assets 448,486 Total assets 495,127 Equity and liabilities Equity attributable to owners of the parent Share capital 40,134 Treasury shares -142 Reserves -3,269 Unrestricted equity reserve 14,708 Retained earnings Total equity 93,374 of which related to non-controlling interests - Liabilities Non-current liabilities Borrowings 137,596 Other payables 0 Deferred income tax liabilities 113 Total non-current liabilities 137,709 Current liabilities Income tax liabilities 2,805 Deposits from customers 188,474 Borrowings 56,819 Derivative liabilities 0 Trade payables 7,482 Other current liabilities 8,465 Total current liabilities 264,045 Total liabilities 401,754 Total equity and liabilities 495,127 Equity ratio % 18.9 Net debt to equity ratio 2.47 Q2 F erratum Group Annual Report

13 Business Segments in 6M 2018 Microloans PlusLoans Credit Limit SME Other* Total Revenue 21,169 32,178 60,040 10, ,232 Share in Revenue, % Other income Directly attributable costs: s -10,550-11,672-16,492-3, ,162 s Reported -9,741-11,164-16,374-3, ,609 Difference ,553 Marketing -2,122-4,610-9,471-2,294-1,238-19,734 Attributable Profit Margin 8,499 15,901 34,084 4, ,352 Attributable Profit Margin, % Non-directly attributable costs: Personnel expenses -3,604-5,478-10,222-1,778-1,069-22,151 Lending costs ,496-2, ,756 Other administrative expenses ,074 Depreciation and amortization ,338 Other operating income and expenses -2,358-3,585-6,688-1, ,442 Total Non-directly attributable costs -7,347-11,168-20,838-3,625-2,783-45,761 Operating profit 1,152 4,733 13,246 1,106-3,647 16,591 Gross Profit Margin, % Unallocated finance income Finance expenses ,419-2, ,699 Unallocated finance expense ,809 Finance costs, net ,419-2, ,416 Profit before income tax 527 3,314 10, ,732 8,175 Net Profit Margin, % Accounts receivable - loans to customers 29,651 67, ,735 40,353 4, ,989 Unallocated assets 225,138 Unallocated liabilities 401,753 Accounts receivable - loans to customers 30 Jun 2018 IFRS 9 Accounts receivable - loans to customers (gross) 404,683 Less: provision for impairment of loan receivables 121,906 Less: provision for impairment of loan receivables Reported 122,474 Difference (568) Accounts receivable - loans to customers (net) 526, Ferratum Group Annual Report 2018 Q2

14 Ageing analysis restated GBV* Provision for Provision for Reported 1 Jan 2018 Difference NBV** ILCR***, % Current 158,368-12,054-4,695-7, , % 1-90 days due 72,398-20,433-17,649-2,784 51, % days due 21,474-12,737-12, , % > 181 days due 84,004-53,433-52, , % Total 336,243-98,657-88,100-10, , % 30 Jun 2018 GBV* Provision for Provision for Reported Difference NBV** ILCR***, % Current 173,653-11,632 4,534-16, , % 1-90 days due 79,768-19,879 17,391-37,270 59, % days due 24,950-14,792 14,503-29,295 10, % > 181 days due 126, ,905 86, ,952 2, % Total 404, , , , , % Jan Jun 2018 Provision for impairment on January 1-78,837 IFRS9 implementation impact -20,912 IFRS9 implementation impact Reported -9,263 Difference -11,649 s on loans -18,986 s on loans Reported -18,866 Difference -120 Amounts fully reserved and booked out -3,171 Amounts fully reserved and booked out Reported -4,082 Difference 911 Provision for impairment on March ,694 Q2 F erratum Group Annual Report

15 Changes in equity Jan Mar 2018 Share capital Treasury shares Unrestricted equity reserve Other reserves Translation differences Retained earnings Equity holders of parent NCI Total equity Opening balance 1 Jan, 2018 (audited) Comprehensive income Profit or loss Other comprehensive income Currency translation difference: Total comprehensive income 40, , ,957 52, , ,243 6,948 6, , ,142 1, ,142 8,442 7, ,301 Transactions with owners Distribution of funds -3,832-3, ,832 IFRS 9 Impact -16,743-16, ,743 Share-based payments Other changes Total transactions with owners Total equity 31 Mar, 2018 (unaudited) ,282-19, ,170 40, , ,099 41,944 93, ,374 Earnings per share restated Jan Jun2018 Profit for the reporting period attributable to owners of the parent Profit for the reporting period attributable to owners of the parent Reported Difference Weighted average number of ordinary shares in issue Adjustment for calculation of diluted earnings per share: Options 131 Diluted weighted average number of ordinary shares in issue Earnings per share, basic 0.32 Earnings per share, diluted Ferratum Group Annual Report 2018 Q2

16 Q3

17 Consolidated Income Statement for the Period 1 January to 30 September, 2018 Revenue 190,194 Other income 333 s on loans -65,400 s on loans Reported -63,996 Difference -1,404 Operating expenses: Personnel expenses -32,919 Selling and marketing expenses -30,396 Lending costs -9,146 Other administrative expenses -1,529 Depreciations and amortization -3,695 Other operating expenses -22,014 Operating profit 25,429 Financial income 123 Finance costs -11,846 Finance costs - net -11,723 Profit before income tax 13,706 Income tax expense -2,055 Profit for the period 11,650 Earnings per share, basic 0.54 Earnings per share, diluted 0.54 Profit attributable to: owners of the parent company non-controlling interests (NCI) 11,650 Consolidated Statement of Compehensive Income for the Period 1 January to 30 September, 2018 Reported Change Profit for the period 11,650 12,843-1,193 Other comprehensive income Items that may be subsequently reclassified to profit or loss Translation difference Total items that may be subsequently reclassified to profit or loss Total comprehensive income 11,836 13,030-1,194 Allocation of total comprehensive income to: - owners of the parent company 11,836 13,030-1,194 - non-controlling interests (NCI) Ferratum Group Annual Report 2018 Q3

18 Consolidated Statement of Financial Position 30 Sep 2018 Assets Non-current assets Property, plant and equipment 4,232 Intangible assets 25,827 Government stocks 8,613 Deferred income tax assets 10,029 Total non-current assets 48,701 Current assets Accounts receivable - loans to customers 294,237 Other receivables 5,721 Derivative assets 1,097 Income tax assets 312 Cash and cash equivalents (excluding bank overdrafts) 159,409 Total current assets 460,776 Total assets 509,476 Equity and liabilities Equity attributable to owners of the parent Share capital 40,135 Treasury shares -142 Reserves -2,461 Unrestricted equity reserve 14,708 Retained earnings Total equity 98,369 of which related to non-controlling interests - Liabilities Non-current liabilities Borrowings 137,497 Other payables - Deferred income tax liabilities 116 Total non-current liabilities 137,613 Current liabilities Income tax liabilities 2,817 Deposits from customers 192,291 Borrowings 56,862 Derivative liabilities 1,488 Trade payables 5,873 Other current liabilities 14,164 Total current liabilities 273,495 Total liabilities 411,108 Total equity and liabilities 509,477 Equity ratio % 19.3 Net debt to equity ratio 2.56 e r Q3 a r F tum Group Annual Report

19 Business segments in 9M 2018 Microloans PlusLoans Credit Limit SME Other* Total Revenue 31,538 47,757 94,519 15, ,194 Share in Revenue, % Other income Directly attributable costs: s -14,401-16,876-28,070-4,930-1,124-65,400 s Reported -14,345-16,432-27,325-4,826-1,067-63,996 Difference ,405 Marketing -3,267-6,862-15,415-3,381-1,471-30,396 Attributable Profit Margin 13,925 24,103 51,201 7,256-1,754 94,731 Attributable Profit Margin, % Non-directly attributable costs: Personnel expenses -5,246-7,944-15,722-2,585-1,422-32,919 Lending costs -1,523-2,307-4, ,146 Other administrative expenses ,529 Depreciation and amortization , ,695 Other operating income and expenses -3,492-5,288-10,467-1,721-1,045-22,014 Total Non-directly attributable costs -10,865-16,452-32,561-5,353-4,071-69,303 Operating profit 3,060 7,652 18,639 1,903-5,826 25,429 Gross Profit Margin, % Unallocated finance income Finance expenses ,394-4,612-1, ,438 Unallocated finance expense ,408 Finance costs, net ,394-4,612-1, ,723 Profit before income tax 2,143 5,258 14, ,002 13,706 Net Profit Margin, % Accounts receivable - loans to customers 28,601 74, ,783 41,704 5, ,237 Unallocated assets 215,240 Unallocated liabilities 411,108 Accounts receivable - loans to customers 30 Sep 2018 IFRS 9 Accounts receivable - loans to customers (gross) 436,820 Less: provision for impairment of loan receivables 121,906 Less: provision for impairment of loan receivables Reported 130,515 Difference (8,609) Accounts receivable - loans to customers (net) 558, Ferratum Group Annual Report 2018 Q3

20 Ageing analysis restated GBV* Provision for Provision for Reported 1 Jan 2018 Difference NBV** ILCR***, % Current 158,368-12,054-4,695-7, , % 1-90 days due 72,398-20,433-17,649-2,784 51, % days due 21,474-12,737-12, , % > 181 days due 84,004-53,433-52, , % Total 336,243-98,657-88,100-10, , % 30 Sep2018 GBV* Provision for Provision for Reported Difference NBV** ILCR***, % Current 189,648-11,632 5,009-16, , % 1-90 days due 84,800-19,879 18,235-38,115 64, % days due 22,942-14,792 13,208-28,000 8, % > 181 days due 139, ,905 94, ,967 15, % Total 436, , , , , % Jan Sep 2018 Provision for impairment on January 1-78,837 IFRS9 implementation impact -20,912 IFRS9 implementation impact Reported -9,263 Difference -11,649 s on loans -18,986 s on loans Reported -18,866 Difference -120 Amounts fully reserved and booked out -3,171 Amounts fully reserved and booked out Reported -4,082 Difference 911 Provision for impairment on March ,583 e r Q3 a r F tum Group Annual Report

21 Changes in equity Jan Sep 2018 Share capital Treasury shares Unrestricted equity reserve Other reserves Translation differences Retained earnings Equity holders of parent NCI Total equity Opening balance 1 Jan, 2018 (audited) Comprehensive income Profit or loss Other comprehensive income Currency translation difference: Total comprehensive income 40, , ,957 52, , ,243 11,650 11, , ,168 11, ,837 Transactions with owners Distribution of funds -3,833-3, ,833 IFRS 9 Impact -16,743-16, ,743 Share-based 1,336 1, ,336 payments Other changes Total transactions with owners Total equity 31 Mar, 2018 (unaudited) ,823-18, ,711 40, , ,291 46,128 98, ,368 Earnings per share restated Jan Mar 2018 Profit for the reporting period attributable to owners of the parent Profit for the reporting period attributable to owners of the parent Reported Difference Weighted average number of ordinary shares in issue Adjustment for calculation of diluted earnings per share: Options 160 Diluted weighted average number of ordinary shares in issue Earnings per share, basic 0.54 Earnings per share, diluted Ferratum Group Annual Report 2018 Q3

22 ABOUT FERRATUM GROUP Ferratum Group is an international provider of mobile banking and digital consumer and small business loans, distributed and managed by mobile devices. Founded in 2005 and headquartered in Helsinki, Finland, Ferratum has expanded rapidly to operate in 25 countries across Europe, Africa, South and North America and the Asia- Pacific region. As a pioneer in digital and mobile financial services technology, Ferratum is at the forefront of the digital banking revolution. Ferratum s mobile bank, launched in 2016, is an innovative mobile banking platform offering a range of banking services, including real time digital payments and transfers, within a single app. It is currently available in five European markets. Ferratum has approximately 2.0 million active and former customers who have an account or have been granted one or more loans in the past (as at 31 December 2018), of which over 790,000 customers have an open Mobile Bank account or an active loan balance in the last 12 months. Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under symbol FRU. For more information, visit Contacts Ferratum Group Dr. Clemens Krause Chief Financial Officer T: E: clemens.krause@ferratum.com Ferratum Group Emmi Kyykkä Head of Group Communications and Investor Relations T: E: emmi.kyykka@ferratum.com Ferratum Group Paul Wasastjerna Head of Investor Relations, Fixed-income T: E: paul.wasastjerna@ferratum.com UK / European media enquiries: Smithfield, A Daniel J Edelman Company Alex Simmons Brett Jacobs T: E: asimmons@smithfieldgroup.com E: bjacobs@smithfieldgroup.com e r Q3 a r F tum Group Annual Report

23