ID Finance and Mintos Cooperation Overview INNOVATION LEADER BEST LENDING PLATFORM TOP-2 FASTEST GROWING FINTECH COMPANY IN EUROPE TOP-50 FASTEST GROWING COMPANY IN EUROPE BEST ALTERNATIVE FINANCE COMPANY EUROPE TOP 100: WINNER «FINANCE» BIG INNOVATION AWARD BENZINGA GLOBAL FINTECH AWARDS FINANCIAL TIMES INC. 5000 EUROPE EUROPEAN FINTECH PUBLIC AWARDS RED HERRING 2017 2017 April 2018 March 2018 2016 2016
ID FINANCE MISSION INTERNATIONAL CONSUMER FINANCE PROVIDER Build an international data-driven financial institution to provide convenient financial services 1 2 DATA-DRIVEN Fully in-house IT & risk management system PRODUCT Tailored to meet consumer needs driving high client retention 3 RISK CONTROL Compliance with all regulatory requirements across the group 4 INTERNATIONAL EXPERTISE Scalable business model
ID Finance Overview LEADING INTERNATIONAL FINTECH COMPANY Innovative Digital Finance (ID Finance) Global expansion and unique registered clients Key facts Founded: 2012 Employees: 600 Geographic presence: 9 countries Products: consumer finance provider CO 2018 MX 2017 BR 2016 PL 2015 Current presence Strategic focus 5.3m ES 2015 (HQ) GE 2014 Mission Build an international data-driven financial institution to provide financial services to the underbanked KZ 2014 BL 2012 (R&D hub) RU 2012 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 Feb-18 Scalable model: launch in new geography within 3 months Financial highlights Investment highlights Exceptional traction: net loan portfolio grew at 221% CAGR Q1 2014 Q1 2018 High client loyalty: 90% of new clients generate repeat business. High Return on Marketing Investment: $4.4 cash net income from $1 invested into CAC High ROAE: 43% in 2017FY High profitability: $100+m of net profit expected in 2021+ $6.5m $5.0m 197 92 62 122 $18m 421 232 $39m 717 366 $66m 1 137 558 $107 m 1 624 803 $152m 2 199 1 112 Technology and data driven: Proprietary scoring model and in-house IT platform 2016 2017 2018F 2019F 2020F 2021F 2022F Issuance ($m) Revenue ($m) Profit after tax 3
Our History RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY Loan issuance dynamics 2012 2013 2014 2015 2016 2017 $0.2m $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: $6.0m AmmoPay and Solva Major factors for effective scaling Professional and motivated global and local teams Centralised IT and riskinfrastructure Monitoring of key indicators in real time 4
ID Finance 2017 Results And 2018 Year Outlook Loans issued ($m) dynamics Revenue ($m) dynamics 450 $421 250 $232 400 350 113% 2017-18 200 90% 2017-18 300 150 250 200 $197 $122 150 100 144% 2014-17 CAGR $92 100 50 184% 2014-17 CAGR $62 50 0 $36 $14 $75 2014 2015 2016 2017 2018E 0 $20 $5 $47 2014 2015 2016 2017 E2018 Actuals Forecast 5
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 10,000+ 98% 70% 90% 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 6
Geographical Expansion STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS Launch Population* (m) Internet users* (m) Mobile users* (m) Russia 2012 144 103 103 Kazakhstan 2014 18 10 15 Georgia 2014 4 2 3 Spain 2015 46 37 40 Poland 2015 38 27 27 Brazil 2016 208 123 130 Mexico 2017 127 73 86 Colombia 2018 48 27 33 USA 2019 321 239 258 Peru 2019 31 13 19 Total 985 653 714 Country of presence ID Finance Geographic diversification 2013-2021. Loans issued Current presence Strategic focus 2013 FY 2017 FY E 2021 FY 100% Share of European and LatAm 0% 79% 1% 20% Share of European and LatAm 21% 41% 3% Share of European and LatAm 59% 23% 33% * 2015 WorldBank, UNdata, emarketer; 2016 Statista, Budde Russia and CIS Europe Americas Other region (Asia/India ) 7
ID Finance and Mintos cooperation FUNDS ATTRACTED INCREASED TO $3M PER QUARTER Funds attracted via Mintos, $k 4000 3500 EUR GEL 3 677 3000 2500 2000 1500 1 356 1 566 1000 500 0 534 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Key highlights $0.5m $6.5m Investors Net Income Net outstanding portfolio 8
Kazakhstan astonishing market opportunity
ID Finance in Kazakhstan Overview LONG TRACTION OF SUCCESS ID Finance in Kazakhstan 2014 Launch TOP-1 market player in Kazakhstan c. 0,5m clients ID Finance in Kazakhstan Convenient online tool for customers to finance their needs $10+ m net income (2018) ($5m in 2017) Growth 400% in net loan portfolio (CAGR Q1 2014 vs. Q1 2018) 10
Net Loan Portfolio Dynamics SIGNIFICANT PORTFOLIO GROWTH KEEPING PORTFOLIO QUALITY STABLE 25 20 15 10 21 15 5 0 10 7,0 5,3 2,7 0,08 0,32 0,7 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Q1 2018 11
Addressable Market Overview MoneyMan Feb-14 Solva.kz May-17 Addressable market $5bn Key growth drivers: Product penetration increase Offline players switch to online Population 18m population (2017); 20m in 5 years 9m able-bodied population Internet penetration 80% population use has internet access (2017) +70pp in 10 years Market Position TOP-1 Solva.kz share is 5% in Q1 2018 *Source: 12
Key Achievements MFI license Credit rating A+ Founder of Fintech Association Active market player 40% market share 13
Innovative Product SUPERIOR USER EXPERIENCE 200k-500k KZT ($625 - $1560) 5 minutes 12 months Monthly payments Max loan size Loan application time Max loan duration Flexible schedule User-friendly website Male 35 years old Client profile High education Married 1 child Full-time job, manager Owns a house or an apartment 14
Kazakhstan and Mintos INVESTOR KEY VALUE PROPOSITION Interest rate 10.5% (EUR) 17% (KZT) Loan term 6 12 months Currencies EUR and KZT 1.25% conversion rate btw EUR and KZT Guarantees Buyback guarantee: NPL 60d+ loans are bought back by ID Finance 15
Boris Batin Co-founder, CEO @ ID Finance boris.batin@idfinance.com Thank you! Alexander Pak CFO @ ID Finance Kazakhstan alexander.pak@idfinance.com 16