Company Overview and Financials Technology Driven Consumer Finance
History & Vision Proprietary Process Automation Credissimo developed in-house an innovative technology that introduced automated instant credit approval 7 days a week E-Commerce & Utility Bill Payments To diversify its products, Credissimo introduced E- Commerce financing and direct Utility Bills Payments. 300+ merchants onboarded Big Data Scoring & Analytics Adopting Machine Learning and Big Data technologies further enhanced Credissimo s loan scoring algorithms Nexo Credissimo is powering the world s First Digital Asset Institution based on blockchain technology founded 2007 2010 2013 2013 2014 2015 2016 2017 2017 Mobile Adoption Development of user-friendly mobile website and iphone/ Android apps helped the company reach over 1,000,000 online loan applications Initial Public Offering (IPO) On May 7 2014 Credissimo successfully listed 2.5 million shares on the public markets Bitcoin & Chatbot Integration Credissimo pioneered a Bitcoin loan repayment option. The company was also the first in the world to launch an lending chatbot FinTech Award Reached Top 10 Alternative Finance in European FinTech Awards 2017. Received two Forbes Business Awards 2017 for Financial Sector Innovations and Quality of Services
History & Vision Credissimo is a leading European FinTech Group founded in 2007 that utilizes innovative proprietary technology to provide Instant Online Consumer Loans, E-commerce Financing and Bill Payment Services. Credissimo is present in six countries worldwide (five in Europe) and is a market leader in the Online Consumer Lending segment in two of them. Our competitive advantage is encoded in our business knowhow that we have developed in more than 10 years of experience. Efficient business model, cutting-edge technology solutions and visionary management are the key drivers of our longstanding success. Credissimo adheres to the highest regulatory requirements and is strictly supervised by multiple European Banking and Financial Services Regulators. Brand Awareness 2017 Consumers Favourite Financial Institution 95% Client satisfaction rate 160k+ Followers on Facebook and 400k+ on Viber
Success Story BBB - Credit Rating Upgrade 1. Superior application process 2. Scalability 120 Employees * 35% Net Income margin Omni-channel processing capability allows for virtually unlimited access to Credissimo s consumer finance products in matter of minutes, which is highly recognized by customers. Structured entirely online, Credissimo s business model has no reliance on a physical network or PPE, leading to easy market expansion, geographic diversification and revenue growth. 75% Returning clients * All figures relate to FY17 unless otherwise stated ** for Jan14-Dec17 1MIL Loan Applications 40% Annual Portfolio ** Growth 3. 4. Operating platform The Company has developed a state-ofthe-art proprietary operating platform which allows a high degree of automation of the business processes on the basis of machine learning and big-data coordination. Scoring system With fast and rigorous automated procedures with preset criteria for approvals/rejections, the Company is addressing the financial needs of customers with higher risk standing, while minimizing risk cost and time of service delivery.
Product Offering Short-term Loans Installment Loans E-commerce POS Online Car Loans Short-term loans are processed online in seconds and the approved amount of up to 300 euro is instantly transferred to the customers with repayment period of 15 to 30 days. Installment loans are processed online in seconds and the approved amount of up to EUR 1,500 is transferred to customers with repayment period of 3 to 24 months. Pay Later is a credit line that gives the customers the flexibility to delay payment up to 15 days on online purchases with 0% interest or by installment payments. Car title loan with a convenient model of application and near instant approval. It is securitized with the leased asset, owned by the lessee prior to the transaction.
Map and Client Base The Company s comprehensive approval criteria contribute to maintaining high quality of the customers base Credissimo s client base contains predominantly young people, having stable occupation, residing in big cities, with male share slightly prevailing. 54% 46% Bulgaria Population: 7 million GDP: 52.4 billion USD Macedonia Population: 2 million GDP: 10.9 billion USD Audited by Clients residing in large cities (above 200k) 91% Clients below the age of 30 years 60% Clients with at least secondary educational degree 93% Romania Population: 20 million GDP: 186.7 billion USD Spain Population: 47 million GDP: 1.232 trillion USD Poland Population: 38 million GDP: 469.5 billion USD Colombia Population: 49 million GDP: 282.5 billion USD
Profit and Loss Summary EUR, 000 FY15 FY16 FY17 H1 2018 Interest Income 2 457 3 099 4 061 2,510 Interest Expense (227) (97) (43) (28) Other income from operations 6 504 8 104 10 609 6 102 Total consolidated revenue 8 734 11 106 14 627 8 584 G&A and other OPEX (3 749) (4 676) (6 215) (4 261) Depreciation (211) (82) (117) Losses from impairment of loans (1 043) (2 180) (2 709) (2 483) Total OPEX & Impairment (5 002) (6 938) (9 041) (6 744) EBT 3 731 4 168 5 586 1 840 Income tax (385) (426) (584) (204) Net Income 3 346 3 742 5 002 1 636 Accounting Policies Credissimo prepares its financial statements in accordance with IFRS. The presented Profit & Loss Statement is on consolidated basis in thousand EUR. Loans to customers represent a net amount comprising granted loan amounts, collected amounts, accrued interest, fees, commissions, and impairment Short-term loans payables are liabilities under loans received from individual creditors and one credit institution
Balance Sheet Report EUR, 000 Dec14 Dec15 Dec16 Dec17 Jun18 Assets Cash and cash equivalents 380 1 016 1 253 1 704 1 876 Loans to clients 6 715 7 945 10 195 13 448 14 473 Other assets 313 982 363 112 255 PPE 119 130 223 216 186 Intangibles 239 105 223 302 330 Total Assets 7 766 10 178 12 257 15 782 17 120 Liabilities Loans payables 1 744 1 308 479 475 686 Finance Leasing 42 39 110 84 74 Trade payables 39 102 160 347 217 Tax Payable 290 360 361 464 165 Other liabilities (incl. salaries) 38 74 137 267 1 201 Deferred tax liability 4 4 1-6 Total Liabilities 2 157 1 888 1 248 1 637 2 349 Total shareholder s equity 5 609 8 291 11 010 14 145 14 771 Total liabilities & shareholder s equity 7 766 10 178 12 257 15 782 17 120
Granted loans and returning clients 79K 55K 60K 63K 80% 80% 77% 75% 2014 2015 2016 2017 Granted Loans (in numbers) % returning clients
Collection and Portfolio Collection From Grants During its historical development, Credissimo has steadily increased the total size of annual loan disbursements. Collection grows in stride with the disbursement growth and the average cash collection rate amounts to approximately 130% from granted loans as a result of Credissimo s highly efficient, in-house structured debt collection and legal enforcement process. Portfolio Growth On consolidated level, Credissimo generated a gross loan portfolio CAGR of 40% for the period Jan2014- Jun2018, with gross portfolio reaching EUR 22.4m as of 30 June 2018. In light of the strong growth of its loan portfolio, Credissimo sustained stable impairment levels leading to large profitability increase. EUR 117M loans granted EUR 151M cash collected since inception 2017 2016 2015 25m 20m 15m 10m 35% 30% 25% 20% 15% 10% 2014 05 10 15 20 25 30 35 5m 0m Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 5% 0% Cash collected Loans granted in EUR millions Gross Portfolio Impairments as % of portfolio
Revenue and Profitability growth Net Income and Return on Equity Our automated proprietary underwriting system simultaneously gathers and analyzes thousands of data points to create a personalized client snapshot. This helps us constantly increase our client base, maintain a steady revenue growth and sustain stable profitability levels. Continuous Revenue Growth, y-to-y For the period 2015-2017 Credissimo enjoyed more than 2m website visits, 466k loan applications and granted more than 202k loans, marking a significant increase year-to-year. Thus, the Company increased its revenue by more than 27% per year in the past 3 financial years, with revenue CAGR reaching 44.3% for the period 2012 2017. ROE 63 % 66 % 62 % 48 % 39 % 40 % 80% 71.4% 71.3% 70% 60% 14 EURm 12 EURm 10 EURm 8 EURm 6 EURm 4 EURm 2 EURm 0 EURm 36.8% 2012 44.3% CAGR of revenue 38.4% 38.3% 35.8% 2013 2014 2015 33.7% 2016 34.2% 2017 43% 41% 39% 37% 35% 33% 31% 29% 27% 25% 50% 40% 30% 20% 10% 0% 2013 2014 27.1% 27.3% 2015 2016 31.7% 2017 Revenue NI margin Revenue Growth, y-to-y
Thank You Please contact us for any further details or requests: e-mail: investors@credissimo.com website: https://credissimo.com Orange Point Building, fl. 2, Dun Karm Street, Birkirkara 9037, Malta