Data Science. Credit Scoring. Digital Finance

Transcription

1 Data Science. Credit Scoring. Digital Finance INNOVATION LEADER BEST LENDING PLATFORM FASTEST GROWING ALTERNATIVE FINANCE COMPANY EUROPE 217 BEST ALTERNATIVE FINANCE COMPANY EUROPE TOP 1: WINNER «FINANCE» BIG INNOVATION AWARD BENZINGA GLOBAL FINTECH AWARDS, FINALIST GLOBAL BANKING & FINANCE REVIEW MAGAZINE EUROPEAN FINTECH PUBLIC AWARDS RED HERRING

2 Group Overview LEADING INTERNATIONAL FINTECH COMPANY Innovative Digital Finance (ID Finance) Global expansion and unique registered clients Key facts Founded: 212 Employees: 52+ Geographic presence: 9 countries Products: consumer finance provider CO 218 Current presence Strategic focus MX 217 BR 216 PL m SP 215 GE 214 Mission Build an international data-driven financial institution to provide financial services to the underbanked KZ 214 BL 212 RU 212 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Scalable model: launch in new geography within 3 months Financial highlights Investment highlights Exceptional traction: net loan portfolio grew at a 187% CAGR Q4 214 Q4 217 High client loyalty: 9% of new clients generate repeat business. High Return on Marketing Investment: $4.4 cash net income from $1 invested into CAC High ROAE: 63% in 217FY High profitability: $1+m of net profit expected in 221+ $12m $6.3m $3m $51m $8m $133m $196m Technology and data driven: Proprietary scoring model and in-house IT platform F 219F 22F 221F 222F Issuance ($m) Revenue ($m) Profit after tax 2

3 Group 217 Results And 218 Year Outlook Loans issued ($m) dynamics Revenue ($m) dynamics % $ % $ $14 144% CAGR $36 $92 $ E Group equity ($m) and return on equity (%) $5 185% CAGR $2 Profit after tax ($m) dynamics $65 $ E Equity, $m RoAE (right scale) 65% 45% $13,5 63% $24,6 $47 84% 1% 9% 8% 7% 6% 5% 4% 3% $6,3 95% CAGR $12, $3 1 5 $5,9 $, E 2% 1% % 5-5 -$,7 $1, E Actuals Forecast 3

4 Our History RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY Loan issuance dynamics $.2m $1.7m $14m $36m $92m $197m Launch and risk optimisation CIS expansion European expansion LATAM expansion Russia Georgia Spain Brazil, Mexico Scoring and risk-management Kazakhstan Poland New products: Round A: $3.5m Installment loans Round B: $6.m AmmoPay and Solva Major factors for effective scaling Professional and motivated global and local teams Centralised IT and riskinfrastructure Monitoring of key indicators in real time 4

5 Strong Management Team GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS Boris Batin, PhD Alexander Dunaev, CFA Javier Segura Francisco Lopez Co-founder, Chief Executive Officer (CEO) 15+ years of work experience in banking and finance Previously held various positions at Deutsche Bank, Renaissance Capital and RBS within debt capital markets in London and Moscow Graduated from Cambridge University with a degree of Master in Economics Co-founder, Chief Operational Officer (COO) 1+ years of experience in banking and finance Previous experience: Deutsche Bank, London Holds Chartered Financial Analyst degree Graduated from Imperial College with a degree of Master in Finance Chief Financial Officer (CFO) 19+ years of experience in financial services and finance Previous experience in General Electric and Standard Chartered Bank Graduated from ESADE University (Barcelona, Spain) with a degree of Master in Business Administration Ekaterina Kazak Chief Risk Officer (CRO) 1 years of work experience in risk management Previously worked as Head of Russia & CIS Experian Analytics Graduated from Moscow State University of Economics, Statistics and Informatics Alessandro Ceschel Chief Marketing Officer (CMO) 11 years of professional experience in Digital Marketing and international IT Projects Previously successfully developed online internet businesses B2C, B2B and P2P in Spain Ulabox, Logismarket, Socialcar, worked in MNC (Nestlé) and in early stage startups Graduated from Padova University with a Master in Industrial Engineering and Business Administration Pavel Shareyko Chief Technical Officer (CTO) 13 years of experience in software development, including development of high-load applications and financial systems Previous experience: Lead developer at Itransition Graduated from Belorussian State University 5

6 Product Portfolio OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS Low margin High margin Banks target lending market Target lending market Minimum margin given borrower risk Banks maximum margin Low risk Medium risk High risk 6

7 Highly Efficient IT & Risk-management System ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT Risk management present at every step of client life cycle ID Finance taps into global and local pools of information Client acquisition Fraud prevention Scoring and fraud-analysis Legal support Client management CLIENT LIFE CYCLE Collections Pre-collections 1,+ 98% 7% 9% Data points are collected and analyzed in real time Applications are processed automatically Of the debt recovery achieved in-house through efficient client management system Of clients become loyal customers through effective CRM system 7

8 Client Acquisition Funnel HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY Conversion rates for 217 Historical data Website visitors 26m 21m Conversion rate to applications increased by 1pp (Y-o-Y) 9% Conversion to applications 1, Website visitors, #m 8, 6, 4, 2,, Q1 214 Q3 214 Q1 215 Q3 215 Q1 216 Q3 216 Q1 217 Q3 217 Applications 2.5m 1.8m Approval rate has increased by 7pp (Y-o-Y) 33% Approval rate 1, Applications, #m,8,6,4,2, Q1 214 Q3 214 Q1 215 Q3 215 Q1 216 Q3 216 Q1 217 Q3 217 Number of loans issued 8k 46k Conversion rate from visits to loans issued has reached 3.1% (+1pp Y-o-Y) 9% Retention rate 3 Number of loans issued, #k 2 1 Q1 214 Q3 214 Q1 215 Q3 215 Q1 216 Q3 216 Q1 217 Q3 217 Amount of loans issued $197m $92m Marketing cost has decreased by 1.8pp (Y-o-Y) 5% Loan marketing cost* 8 Amount of loans issued, $m Q1 214 Q3 214 Q1 215 Q3 215 Q1 216 Q3 216 Q1 217 Q3 217 * Marketing costs divided by amount issued 8

9 Portfolio Quality ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH Net outstanding portfolio (December 217) Revenue structure (217 FY) 1% 9% 1%4% 9% 43% Net portfolio $77.3m 12% 16% 53% Revenue $123m 1% 23% 19% Russia Kazakhstan Georgia Spain Poland Brazil Mexico Historical group NPL* rates Historical group level of NPLs* 5% 45% 4% 35% 3% 25% 2% 15% 1% 43,3% 23,5% $4m $35m $16.5m $25m $2m $25,5m $341m 14,6% 12,1% $193m 9,7% 1,1% 11,2% 1,6% 1,1% $1m $176m 7,5% $3m $15m $316m 5% $5m % H1 213 H2 213 H1 214 H2 214 H1 215 H2 215 H1 216 H2 216 H1 217 H2 217 $m Loans issued since launch NPL as of Dec-17 Repaid and performing loans Dec-17 * Loans with payments overdue 9+ days are considered non-performing loans (NPLs) 9

10 Geographical Expansion STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS Launch Population* (m) Internet users* (m) Mobile users* (m) Russia Kazakhstan Georgia Spain Poland Brazil Mexico Colombia USA Peru Total Country of presence ID Finance Geographic diversification Loans issued Current presence Strategic focus 213 FY 217 FY E 221 FY 1% 79% 1% 2% 3% 24% Share of European and LatAm % Share of European and LatAm 21% 4% Share of European and LatAm 6% 34% * 215 WorldBank, UNdata, emarketer; 216 Statista, Budde Russia and CIS Europe Americas Other region (Asia/India ) 1

11 Product Diversification FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS Strategy focus Focus on prime users Larger market capacity Longer term Client profile Market size Loan term Larger volume Lower risk % Lower rates Loan volume NPL level Competitive advantage Product diversification Loans issued 213 FY 217 FY E 221 FY 1% 57% 43% 24% 76% Share of long-term loans % Share of long-term loans 43% Share of long-term loans 76% Single payment loans Instalment loans 11

12 ID Finance Funding Strategy FUNDING LATAM AND LONGER-TERM PRODUCT EXPANSION Funding highlights Debt portfolio. Currency breakdown Bond issuance raisedrub 5m ($8.7m) in Dec-17 Cooperation with Mintos total debt $3.7m: GEL 2.3m ($.9m) and EUR 2.3m ($2.8m) Total Group debt portfolio - $76m, including $37m from credit funds, HNWI and banks, $3m from individuals and $8.7m from bonds $18m of additional funding available from banks and funds USD 3% EUR 15% GEL 1% $76m RUB 54% Debt portfolio is well-diversified in terms of currency Non-bank debt funding** raised in cash ($k) Debt portfolio. Source breakdown Debt portfolio is well-balanced in terms of maturity. The latest scheduled payment is in Q % % $76m 49% Credit funds Individual investors Bonds 4 2 Q1 218 Q2 218 Q3 218 Q4 218 Q1 219 Q2 219 Q3 219 Q4 219 Q1 22 Q2 22 Q3 22 Q

13 Boris Batin Co-founder, ID Finance Boris.batin@idfinance.com Thank you! Alexander Dunaev Co-founder, ID Finance Alexander.dunaev@idfinance.com 13