COMPANY PRESENTATION February 2017 1
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 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 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 900 000 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 2016. 4
GROUP MANAGEMENT 5
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 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 1 000 employees, MyBucks has already disbursed more than 900 000* loans with loan disbursements of more than EUR 230* million since inception. EUR Million FY Jun 14 FY Jun 15 FY Jun 16 Disbursements 26.1 64.7 77.2 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 14.6 36.2 41.2 Revenue 12.9 31.3 38.9 Operating Profit 4.5 11.5 11.4 Operating Margin 35% 36% 29% Note: *As at 30 December 2016. **No operations, only holding and financing subsidiaries. 7
AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 8
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
MOBILE INTERACTION EASY AND INTUITIVE ACCESS Log-in Sign-up Product Selection Credit Report Budget Tool Dashboard 10
ABOVE-THE-LINE ADVERTISING BRAND BUILDING ON CHANNELS WITH MASS REACH AND HIGH IMPACT 11
BELOW-THE-LINE ADVERTISING FOCUS ON CONVERSION OPTIMISATION, WHICH DRIVES US TO TARGETING A HIGHER-QUALITY LEAD Source: Google analytics website URL http://analytics.google.com 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 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
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
UNTAPPED GROWTH POTENTIAL ACCOUNT PENETRATION IN AFRICAN COUNTRIES 2 MOBILE INTERNET SUBSCRIBER PENETRATION 3 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 80 70 60 50 40 30 20 10 0 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 15% 2015 Tanzania 40 Smartphone 2020 43% 2020 Uganda 44 Phone Africa 2015 85% 2015 Zambia 36 57% Zimbabwe 32 Financial institution account only Financial institution Account and Mobile money account Mobile money account only 2014 2015 2020 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
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* 24.8 23% 21% Malawi* 17.2 14% 16% Mozambique 3.3 11% 7% Uganda 7.1 12% 4% Zimbabwe 0.5 13% 25% Low levels of bank account access and smartphone penetration presents significant opportunity for growth in Africa. Note: *Acquisitions pending regulatory approval. Source: www.businessinsider.com; www.gsmaintelligence.com 16
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
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 10 000 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% 1500 1000 427% 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 500 235% 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 0 2015 2016 2020 AUSTRALIA FINTECH SECTOR - EUR M Source: www.prnewswire.com 18
AGENDA 1. EXECUTIVE SUMMARY 2. BUSINESS MODEL AND GROWTH STRATEGY 3. FINANCIAL OVERVIEW 4. SHARE PRICE PERFORMANCE 19
FINANCIAL OVERVIEW KEY PERFORMANCE INDICATORS REVENUE AND OPERATING PROFIT (EUR million) % Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/16 45 40 38.9 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% 35 30 25 20 31.3 Weighted average cost of funding 16% 19% 21% Bad debt impairment rate 18% 21% 22% 15 10 13.1 11.5 11.4 Default rate 7% 7% 7% Year on year net loan book growth Year on year disbursement growth 211% 148% 106% 216% 148% 75% 5 0 4.6 YE 2013/14 YE 2014/15 YE 2015/16 Revenue Operating Profit Source: MyBucks S.A. audited financial statements and company accounts. 20
FINANCIAL STATEMENTS INCOME STATEMENT EUR Fiscal Year 2013/14 Fiscal Year 2014/15 Fiscal Year 2015/16 Revenue 12 982 478 31 290 847 38 905 752 Loan impairments (2 707 305) (6 813 975) (9 107 634) Other income 248 829 406 487 657 037 Operating expenses (5 963 259) (13 370 018) (19 057 399) Operating profit/(loss) 4 560 743 11 513 341 11 397 998 Investment revenue 216 737 872 031 1 499 750 Finance costs (1 497 928) (6 321 106) (11 948 429) Profit/(loss) before taxation 3 279 552 5 686 838 949 319 Income tax expense (1 098 778) (2 351 522) (1 596 652) Profit/(loss) for the year 2 180 774 3 335 316 (646 333) Source: MyBucks S.A. audited financial statements and company accounts. 21
FINANCIAL STATEMENTS CONDENSED BALANCE SHEET ASSETS EUR Fiscal Year 2013/2014 Fiscal Year 2014/2015 Fiscal Year 2015/2016 Goodwill and Intangibles 821 358 3 336 746 3 813 588 Property,plant & equipment 748 028 720 215 1 745 511 Loans to related parties and shareholders 697 035 1 497 303 6 126 899 Loan Book 14 591 811 36 199 127 41 200 946 Other Assets 3 738 551 15 524 272 16 608 353 Cash and equivalents 2 613 703 7 970 677 18 908 385 Total Assets 23 210 486 65 248 340 88 403 682 Equity EQUITY AND LIABILITIES EUR Fiscal Year 2013/2014 Fiscal Year 2014/2015 Fiscal Year 2015/2016 Equity attributable to parent 7 071 700 10 157 309 16 297 476 Equity attributable to minorities 975 343 2 326 839 3 192 225 Total Equity 8 047 043 12 484 148 19 489 701 Liabilities Loans from related parties and shareholders 8 937 179 19 355 100 26 947 440 Other financial borrowings 4 326 851 26 263 424 26 769 482 Other liabilities 1 899 413 4 142 867 9 682 773 Bank overdraft 0 3 002 801 5 125 469 Deposits from customers 0 0 388 817 Total Liabilities 15 163 443 52 764 192 68 913 981 Total Equity and Liabilities 23 210 486 65 248 340 88 403 682 Source: MyBucks S.A. audited financial statements and company accounts. 22
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 18.60 ISIN: *As of 17/01/2017 LU1404975507 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: 11 148 000 Source: http://en.boerse-frankfurt.de/ 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
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 1933. 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
14 Edward Steichen Street, L-2540 Luxembourg DAVE VAN NIEKERK Chief Executive Officer Mobile +27 82 372 6346 Phone +352 2088 2123 dave@mybucks.com TIM NUY Deputy Chief Executive Officer Mobile +27 84 080 4312 Phone +352 2088 2123 tim@mybucks.com 26