COMPANY PRESENTATION January 2017
Introduction to MyBank I History Established as MyProject AS in August 2015 Commercial banking license granted in July 2016 Completed equity issue of NOK 240 million in November 2016 II About MyBank Newly established online retail bank initially offering consumer loans, refinancing loans and deposit accounts Potential for mortgage loans when it offers attractive risk/reward 100 % agency-based distribution III Launch MyBank expects to commence operations during Q1-2017 2
MyBank - the agents preferred partner Low-cost banking setup + Interests aligned + Market opportunity = Robust business model with high profitability 100 % agency-based distribution secures low fixed-cost base No marketing or branding costs Standard banking products and established IT setup Cheap funding mainly through deposits Commission structure enabling high growth and low churn No competition between bank and agent Fully scalable cost structure Extremely attractive consumer loans market. Loan agents represent more than 50% of volumes 1 Refinancing loans also attractive Mortgage loans a potential target market when risk/reward improves Low-cost player targeting high-return sector Agent model enabling unique combination of high growth, low churn and low fixed costs Possibility for diversification of revenue streams What the customer needs. At low cost Preferred partner for loan agents Entering a highly profitable market with a unique and flexible business model Positioned for profitable growth Phase I Phase II Unsecured consumer loans Refinancing loans with collateral Deposits from the public Mortgage loans (when attractive risk/reward) Car loans Subsequent issuance of covered bonds to reduce funding costs 3 1) Management estimates
Agent-driven bank tailored for the typical retail customer MyBank in brief Incentive structure allows for long-term customer relations Vision To provide all banking services that the typical retail customer need, at a competitive price, and over time Good and longlasting relation to the bank Low fixed costs Concept Distribution outsourced to agents Financed by deposits One IT supplier with a standard platform Automated processes Scalable business model All profits reinvested until listing Attractive agent commission terms The distribution outsourcing circle Attractive customer terms Interaction: Customer, distribution agent and MyBank Products MyBank will allocate capital to the markets that yield the best risk-adjusted returns at any given time - Consumer loans - Refinancing loans - Mortgages The agent does the marketing and advises the customer The customer s desired product is registered by the agent and/or the customer MyBank performs credit assessment Ambitions Lowest fixed costs base in the industry 20 % ROE after 3 years Stock exchange listing Offer is given if the requirements are met The customer signs using BankID Customer relation established 4
Targeting the retail banking market with a simple and unique distribution model Current agent model is flawed... AGENTS Sales commission sole revenue stream Limited revenue predictability drives short-term customer focus New loans Sales commission BANKS Using agents as well as own distribution Double cost structure Competition between the bank and the agent drives customer churn...and based on experience... EXPERIENCE AS AGENTS EXPERIENCE WITH AGENTS Agents represent a significant part of the market 50% of consumer loans...we have created the MyBank model AGENTS Sales commission and portfolio commission (ceases to apply if/when the customer leaves) Strong revenue predictability enables long-term customer focus New loans Customer management Sales commission Portfolio commission MYBANK Agents only (no own distribution) Low fixed costs Strong distribution power No competition secures loyal agents and low customer churn 5
Differentiating from the competition Distribution setup Agent distribution Own distribution Own marketing What MyBank can offer the agents Outsourced customer service Agents receive portfolio commission based on customer quality as long as the customer remains in MyBank, and is therefore incentivised to keep high quality customers in MyBank for as long as possible No competition between MyBank and the agent Agents are incentivised to ensure that customers remain in MyBank, ultimately leading to loyal agents, low fixed costs for MyBank and low customer churn Distribution agreements in place MyBank has signed distribution agreements with 3 agents, and will start receiving loan applications in Q1-2017 Necessary agent distribution agreements have been signed in order to fulfil the management s targeted loan volumes 6
Ambitious and competent management team Christen Fredriksen Chief Executive Officer 1966 4,180,000 Shares Jakob Bronebakk Chief Financial Officer 1976 2,100,000 Shares Former CEO and Head of Operations for Jernbanepersonalets Bank og Forsikring Prior experience from bank and insurance, including BNP Paribas, Allianz, Zurich, Tryg, KPMG and agent distribution Particular expertise within process efficiency / IT, distribution and risk management M. Sc. In Business and Administration from University of Augsburg, Germany Former CFO and Risk Manager of Jernbanepersonalets Bank og Forsikring Extensive experience from various banking operations, including financing, cash management and risk management Prior experience from derivative markets (broking and structuring), asset management and trading B.Sc in International Relations from LSE, PgDip in Finance from Birkbeck, University of London and MBA, Business and Strategy Management from Norwegian School of Economics Yann Skaalen Chief Commercial Officer 1973 4,018,000 Shares Significant experience from working both as and with agents since 1999 Founded Finansa in 2003 which was sold to Freedom Finance in 2014 (rebranded to Zmarta and sold to Bauer Media Group in June 2016) In-depth knowledge of digital marketing and CRM from founding and developing several IT companies Thomas Nustad Chief Risk Officer 1974 4,780,000 Shares Thomas Iversen Chief Technology Officer (from 1 March 2017) 1970 119,048 Shares Owner of Norsk Boligfinans AS Prior experience from Nordea Investment Management (advisory institutional clients), former distribution agent for mortgages as well as sales manager responsible of distribution Board member of Finansagentenes Forening M. Sc. In Economics and Finance from St Cloud State University, MN, USA Former CIO of Jernbanepersonalets Bank og Forsikring Held various technology positions within different industries like IT, Telecom, Bank and Finance Implementing strategies for various digitization and IT programs M. Sc. in Engineering from the Norwegian Institute of Technology Steinar Carlsen Chief Credit Officer 1967 0 Shares Extensive credit & risk experience from both retail & corporate banking Former Retail Branch Manager Nordea, Manager Financial Risk Management KPMG, Head of Credit BNP Paribas Personal Finance & Manager Commercial Credit Storebrand Bank Bachelor with Honours in Business Organisation, Heriot Watt University Edinburgh 7
Board of Directors with extensive experience Tom Knoff Chairman 240,000 shares Knut Einar Rishovd Board member 240,000 shares Former chairman of the board in Argentum and board member of Holta Invest Vast experience as chairman and board member from a variety of companies within financial institutions and the industrial sector Former Managing Director of Nordea Private Banking Norway, Managing Director in Christiania Markets (Kreditkassen) and CEO of DNB Fonds AS MBA from University of Rochester, New York and M. Sc. From Norwegian School of Economics (NHH) State authorised Public Accountant and lawyer in the auditing firm Flattum & Co AS Vast experience from prior board positions Former experience as auditor and consultant in PwC, as well as managing positions in the banking sector focusing on treasury, money market, credit, payment processing, IT and operations Law degree from University of Oslo, State Authorized Public Accountant from the Norwegian School of Economics (NHH), M. Sc. Information Technology from Florida Institute of Technology and MBA from Arizona State University Beate Nygårdshaug Board member 170,000 shares Ms. Nygårdshaug currently holds ownership-positions and board positions through Bergsjo AS, in addition to providing consultancy services with strategic, organizational and legal matters Previous experience includes 8 years as Head of Legal for Kistefos AS, a private Investment Company, 4 years as Legal Counsel in the telecom industry with TDC Song, as well as work at different Norwegian law firms MBA from IMD Business School and Master of law from the University of Oslo Marit Lambrechts Board member 400,000 shares CEO of Espira Group AS (a leading day-care operator) and sits in the group management of AcadeMedia AB (Northern Europe s leading private education operator with approx. 10,000 employees) Former CEO of AllianceBoots Norway (developed the pharmaceutical business to a revenue of NOK 3bn) Currently Ms. Lambrechts holds numerous board positions. Previously held positions in the Supervisory Board and Board of Directors in yabank Ph. D. in pharmaceutics from UiO, additional education from BI Norwegian Business School and INSEAD Svein Øvrebø Board member 7,936,508 shares More than 20 years of experience as agent covering a broad range of personal financial services to consumers including personal loans, insurance, credit cards etc. Founder of Centum Finans that was acquired by Freedom Finance in 2007. Mr. Øvrebø served as CEO until 2011 Freedom Finance (later: Zmarta) has evolved into the largest agent company in the Nordics and was recently acquired by Bauer Media 8
Disclaimer This presentation (the Presentation ) has been produced by MyBank ASA ( MyBank or the Company ), in connection with registration on the N-OTC list. This Presentation is for information purposes only and does not in itself constitute an offer to sell or a solicitation of an offer to buy any Shares in the Company. This Presentation includes, and is based on, among other things forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance as to the correctness of such forward-looking information and statements. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. AN INVESTMENT IN THE COMPANY INVOLVES SIGNIFICANT RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including but not limited to projections, estimates, targets and opinions, contained herein, and no liability or responsibility whatsoever is accepted as to the accuracy or completeness of this Presentation or for any errors, omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation does not purport to contain all of the information that may be required to evaluate the Company and its Shares and should not be relied on in connection with an investment in the Company. 9