COMPANY PRESENTATION February 2017

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Linda Hampton
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1 COMPANY PRESENTATION February

2 AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 2

3 MYBUCKS VISION Banking MyBucks is a FinTech company

financial products and services to customers.

empower people We push boundaries Access Our digital

experiences, relevant solutions, efficient lowcost

3 3 MYBUCKS VISION Banking MyBucks is a FinTech company that embraces technology as a means to provide financial products and services to customers. Digital Experiences Customer Lending Insurance We empower people We push boundaries Access Our digital strategy is all about engaging customers with great experiences, relevant solutions, efficient lowcost access points, while enabling attractive costto-income ratios. Remittances We innovate We provide digital financial solutions MyBucks Phone Budgeting Tool. Value Added Services Credit Reports MVNO 3

4 4 MYBUCKS OVERVIEW & HIGHLIGHTS The leading FinTech company in Sub-Saharan Africa 38.9m in Revenue Present in 11 African countries, 2 European countries and Australia First FinTech player on the continent to provide saving products 59% Customer retention rate Currently operating 3 banks with 5 licenses pending Proprietary credit scoring and fraud detection algorithms Ghana Uganda Kenya In excess of 1.5 million customers Default rate of 7.13% Tanzania Over loans issued with a value of over 230 million Market cap > 200 million (17 January 2017) Malawi Zambia Mozambique Loan book of c. 42 million Stock price up over 32% since listing on 23 June, 2016 Existing operations Zimbabwe Botswana Namibia Swaziland Lesotho Future operations South Africa Source: Company accounts as at 31 December

5 GROUP MANAGEMENT 5

6 NON-EXECUTIVE DIRECTORS 6

BUILDING A LEADING DIGITAL BANK KEY FACTS OUR KEY MILESTONES Our product offering encompasses short-term single payment loans and installment loans, as well as insurance products and online savings

Fintech Pioneer Product Broadening Country Expansion Transformation Our proprietary credit decisioning and scoring technology and self-learning algorithms enable us to: distribute our products at a

7 BUILDING A LEADING DIGITAL BANK KEY FACTS OUR KEY MILESTONES Our product offering encompasses short-term single payment loans and installment loans, as well as insurance products and online savings accounts, mobile transactions and transaction cards. Fintech Pioneer Product Broadening Country Expansion Transformation Our proprietary credit decisioning and scoring technology and self-learning algorithms enable us to: distribute our products at a highly competitive cost; rapidly scale up our business, effectively manage our credit risk. With more than employees, MyBucks has already disbursed more than * loans with loan disbursements of more than EUR 230* million since inception. EUR Million FY Jun 14 FY Jun 15 FY Jun 16 Disbursements Development of proprietary FinTech platform Start of mobile and online lending Start of insurance business Geographical expansion including Europe Opportunity Banks: Deposit taking institutions Net Loan Book Revenue Operating Profit Operating Margin 35% 36% 29% Note: *As at 30 December **No operations, only holding and financing subsidiaries. 7

8 AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 8

9 INNOVATION - OUR PRODUCT OFFERING GETBUCKS APP We can offer our entire product offering: from consumer lending, to insurance to both digital and standard banking services. HARAKA APP Innovation is one of the pillars of our business, and our product offering is key to our success. 9

10 MOBILE INTERACTION EASY AND INTUITIVE ACCESS Log-in Sign-up Product Selection Credit Report Budget Tool Dashboard 10

11 ABOVE-THE-LINE ADVERTISING BRAND BUILDING ON CHANNELS WITH MASS REACH AND HIGH IMPACT 11

12 BELOW-THE-LINE ADVERTISING FOCUS ON CONVERSION OPTIMISATION, WHICH DRIVES US TO TARGETING A HIGHER-QUALITY LEAD Source: Google analytics website URL 12

OUR PROPRIETARY FINTECH PLATFORM FinCloud, our fully cloud-based proprietary loan management system, enables us to manage credit risk, our loan book portfolios, and efficiently serve our customers

13 OUR PROPRIETARY FINTECH PLATFORM FinCloud, our fully cloud-based proprietary loan management system, enables us to manage credit risk, our loan book portfolios, and efficiently serve our customers securely, via the internet, mobile phone and telephone, in real time. Jessie, our proprietary credit decisioning and scoring technology platform, is based on artificial intelligence (AI) algorithms. It considers a number of factors, such as the customer s behavioural, transactional and credit bureau data, as well as employment information. Watson uses AI algorithms (e.g. clustering and classification) to calculate a client's fraud score based on how close that client's online behaviour matches past fraudulent behaviour of known fraudsters. Clients with high fraud scores are flagged for further review. Live reporting systems provide management with real-time company performance. Security is provided through various encryption technologies. Our customer and internal processes are seamless as we fully integrated third party platforms into our systems (e.g. several govern-ment platforms across the continent) BR.NET is MyBucks banking platform for microfinance banks in the group. TEMENOS is the banking platform for the retail banks which includes the Opportunity operations. Redundancy provided by tier 1 Data centers in Africa and Europe. 13

14 HIGH CUSTOMER RETENTION RATE MYBUCKS TRUST LEVELS On the basis of demonstrated positive credit behavior, we offer customers reduced rates, higher loan volumes and more attractive terms. CUSTOMER RETENTION RATE 59% of MyBucks customers purchase at least two or more products. Example for South Africa. Discounts are in relation to a % of the interest rate charged 14

15 UNTAPPED GROWTH POTENTIAL ACCOUNT PENETRATION IN AFRICAN COUNTRIES 2 MOBILE INTERNET SUBSCRIBER PENETRATION Botswana 52 Sub-Sahara Africa 23% 2014 Ghana 41 Sub-Sahara Africa 37% 2020 Kenya 75 Developing countries 29% 2014 Namibia 59 Developing countries 45% 2020 South Africa 70 Smartphone % 2015 Tanzania 40 Smartphone % 2020 Uganda 44 Phone Africa % 2015 Zambia 36 57% Zimbabwe 32 Financial institution account only Financial institution Account and Mobile money account Mobile money account only Source: (1) World Bank, FN #2014-2; (2) Global Findex database, World Bank, 2014.; (3) GSMA intelligence Sub-Saharan Africa Mobile Economy 2015 report. 15

16 STRATEGY: DIGITAL BANKING RATIONALE AND POTENTIAL OF BANKING AFRICA DIGITALLY Addressable market of over 400 million people Traditional banks in Africa have executed digital banking poorly Over 300 million smartphone users in Africa Smartphone market expected to be over 720 million users by 2020 Platform to cross sell credit, insurance and remittances digitally Added over 1 million customers with Banking strategy in 2016 Current operations Future Banking operations Current Banking operations BANKING AFRICA - DIGITALLY COST REDUCTION ACCESS TO DATA Addressing a demand for convenient, accessible financial products and financial inclusion FinTech solutions reduce the need for brick and mortar, driving down costs Migrating from bricks to clicks Our AI self learning algorithms utilises data to mitigate credit risk, fraud and to understand our clients needs Country Current Deposits (EUR m) Bank Account Access % Smartphone Penetration % Ghana* % 21% Malawi* % 16% Mozambique % 7% Uganda % 4% Zimbabwe % 25% Low levels of bank account access and smartphone penetration presents significant opportunity for growth in Africa. Note: *Acquisitions pending regulatory approval. Source:

STRATEGY: PRODUCT DIVERSIFICATION GETBUCKS APP (AGRI CREDIT) HARAKA APP (SMME CREDIT) We offer our entire product offering digitally Africa is poised for growth in both SMME and

is one of the pillars of our business, and our product offering is key to our success.

17 STRATEGY: PRODUCT DIVERSIFICATION GETBUCKS APP (AGRI CREDIT) HARAKA APP (SMME CREDIT) We offer our entire product offering digitally Africa is poised for growth in both SMME and Agricultural sector Untapped market of over 400 million individuals MyBucks has designed products to cater for these markets Transactional banking Personal loans Life insurance Innovation is one of the pillars of our business, and our product offering is key to our success. MyBucks can effectively service this demand with its proprietary technology and experience AI scoring provides the solution to financial inclusion in Africa Transactional cards SMME loans Legal insurance Savings accounts Agriculture loans Health insurance Remittances Education Loans Funeral cover 17

18 STRATEGY: GEOGRAPHIC EXPANSION LATEST ACQUISITION FAIR GO FINANCE AUSTRALIA MyBucks acquired 75% of leading Australian digital credit provider, Fair Go Finance at a value of EUR 2.1m paid in shares. INDUSTRY GROWTH PROSPECTS 2500 RATIONALE Additional clients Increase of loan book size Stable currency market Platform into South East and Pacific Asia 2000 KPI S Revenue EUR 3m Loan Book EUR 7.2m Average Loan size EUR 1600 Average Term 12 Months Bad debt 12% % AUSTRALIAN MARKET 2 Billion FinTech industry with a CAGR of 76.3% Addressable market 15 million Well regulated market Sound technology and payment infrastructure Competitors Ferratum, OnDeck, Nimble % SOUTH EAST ASIA PACIFIC MARKET Over 550 million people Average mobile phone penetration rate of 104% Over 700 million loans issued per annum FinTech industry investment < 1 Billion USD AUSTRALIA FINTECH SECTOR - EUR M Source: 18

19 AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 19

20 FINANCIAL OVERVIEW KEY PERFORMANCE INDICATORS REVENUE AND OPERATING PROFIT (EUR million) % Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/ Year on year revenue growth 312% 141% 88% Operating expenses / revenue 46% 44% 49% Operating profit margin 35% 36% 29% Revenue to average gross loan book 120% 107% 94% Weighted average cost of funding 16% 19% 21% Bad debt impairment rate 18% 21% 22% Default rate 7% 7% 7% Year on year net loan book growth Year on year disbursement growth 211% 148% 106% 216% 148% 75% YE 2013/14 YE 2014/15 YE 2015/16 Revenue Operating Profit Source: MyBucks S.A. audited financial statements and company accounts. 20

21 FINANCIAL STATEMENTS INCOME STATEMENT EUR Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/16 Revenue Loan impairments ( ) ( ) ( ) Other income Operating expenses ( ) ( ) ( ) Operating profit/(loss) Investment revenue Finance costs ( ) ( ) ( ) Profit/(loss) before taxation Income tax expense ( ) ( ) ( ) Profit/(loss) for the year ( ) Source: MyBucks S.A. audited financial statements and company accounts. 21

22 FINANCIAL STATEMENTS CONDENSED BALANCE SHEET ASSETS EUR Fiscal Year 2013/2014 Fiscal Year 2014/2015 Fiscal Year 2015/2016 Goodwill and Intangibles Property,plant & equipment Loans to related parties and shareholders Loan Book Other Assets Cash and equivalents Total Assets Equity EQUITY AND LIABILITIES EUR Fiscal Year 2013/2014 Fiscal Year 2014/2015 Fiscal Year 2015/2016 Equity attributable to parent Equity attributable to minorities Total Equity Liabilities Loans from related parties and shareholders Other financial borrowings Other liabilities Bank overdraft Deposits from customers Total Liabilities Total Equity and Liabilities Source: MyBucks S.A. audited financial statements and company accounts. 22

23 AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 23

STOCK MARKET PERFORMANCE Share price appreciated 37% by 37% since listing 205m* FRANKFURT STOCK EXCHANGE MARKET Market Cap - EUR 205 m* 17 January 2017 52-Week Low 13.33 52-Week High 19.69 Close 18.

Market / Entry Standard FinTech MBC:GR EURO Date of IPO: 23 rd of June 2016 Number of shares: 11 148 000 Source: http://en.boerse-frankfurt.de/ Note: Further shares in MyBucks S.A.

24 STOCK MARKET PERFORMANCE Share price appreciated 37% by 37% since listing 205m* FRANKFURT STOCK EXCHANGE MARKET Market Cap - EUR 205 m* 17 January Week Low Week High Close ISIN: *As of 17/01/2017 LU German Securities Code (Wertpapierkennnummer WKN): A2AJLT Stock exchange: Market segment: Sector: Share Code: Currency: Frankfurt Stock Exchange Non-Regulated Market / Entry Standard FinTech MBC:GR EURO Date of IPO: 23 rd of June 2016 Number of shares: Source: Note: Further shares in MyBucks S.A. are to be issued to Opportunity, Inc. pursuant to the Acquisition of Opportunity Mozambique and Uganda and the execution of the Trademark License Agreement. Further shares in MyBucks S.A. are to be issued to former shareholders of FGF pursautn to the acquisition of FGF (insert full legal names). Stock option program over 412,500 shares exists. 24

25 DISCLAIMER This presentation ( Presentation ) and all information contained therein is strictly confidential and for internal use by the recipient only. Any redistribution of this Presentation, in whole or in part, to third parties, is strictly prohibited. This Presentation may, in particular, not be distributed or published in, or into, the United States, Canada, Japan or Australia, or to any U.S. Person, using Regulation S promulgated under the U.S. Securities Act of Any failure to comply with these restrictions may constitute a violation of securities laws. This Presentation is for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities in the United States or any other territory. This Presentation has been produced by MyBucks S.À (the Company ) and no one else, and is furnished to the recipient solely for information purposes and may not be reproduced or redistributed, in whole or in part, to any other party. No representation or warranty (express or implied) is made as to, and no reliance should be placed on any information contained herein or the correctness thereof. This includes projections, estimates, targets, and opinions contained herein. No liability or responsibility whatsoever is accepted by the Company as to any errors, omissions or misstatements contained herein. The following parties accept no liability whatsoever arising directly or indirectly from the use of this Presentation: (i) the Company; (ii) any other person; (iii) any of the Company s parent or subsidiary or affiliates undertakings; and/or (iv) any of the aforementioned parties officers, employees and advisors. By accepting this Presentation, the recipient acknowledges that it will be solely responsible for its (i) assessment of the Company; (ii) the market; and (iii) the market position of the Company, and that it will conduct its analysis and be solely responsible for forming its view of the potential future performance of the Company s business. No information supplied in this Presentation is intended to form the bases of any credit and/or other evaluation, and it should not be considered as a recommendation by any party that any recipient of this Presentation should take any action in connection therewith. 25

26 14 Edward Steichen Street, L-2540 Luxembourg DAVE VAN NIEKERK Chief Executive Officer Mobile Phone TIM NUY Deputy Chief Executive Officer Mobile Phone

Results Presentation.

1 Results Presentation. Full Year Results 2018 Salient features. 2 Operating profit improved by 26% year-on-year. Loss after tax improved as a result of increased revenues, improved impairment to revenue,