Delfin Group

Earnings Release • Nov 10, 2021

FINANCIAL REPORT

UNAUDITED RESULTS FOR 9 MONTHS ENDING 30 SEPTEMBER 2021

Second largest non-bank consumer lender in Latvia*

DELFINGROUP AT A GLANCE

Largest IPO in Latvia in terms of number of shareholders

Latvian Corporate Governance Award 2021*

BUSINESS SEGMENTS

• Consumer loans
• Pawn loans
• POS loans
• Retail of pre-owned goods

90+ branches

400,000+ registered customers

last 10 years profitable operations

BRANDS:

KEY FINANCIALS (2021 9M)

37.1 m€ (+7% Y-o-Y) Value of issued loans

3.48 m€

(-5% Y-o-Y) **

Profit before tax

38.2 m€

(+12% Y-o-Y)

Net loan portfolio

7.0 m€

(+1% Y-o-Y)

EBITDA

* Forbes Latvia magazine No. 26 (November 2021)

** Decrease in PBT due to reversal of loan loss provisions in Q3 2020 created at the beginning of Covid-19 pandemic

Altogether 6 bond issues

IPO RESULTS

On 14th of October 2021 the DelfinGroup IPO subscription period ended, as a result of which:

• 5 927 new shareholders participated in the IPO;
• Company raised 8.09 million euros.

Corporate governance award

On September 10th the Latvian Corporate Governance Awards were presented

DelfinGroup has ensured an open, transparent and international supervisory board selection process and received an award in the nomination

"Most Successful Supervisory Board Selection".

From left: Baltic Institute of Corporate Governance Vice President Andris Grafs, Conexus Baltic Grid Member of the Management Board Mārtiņš Gode, Deputy Prime Minister, Minister of Justice Jānis Bordāns, SCHWENK Latvija Member of the Management Board, Environmental and Legal Director Evita Goša, DelfinGroup Chairman of the Supervisory Council Agris Evertovskis

5

Indicator	2024 targets
Net loan portfolio	70 m EUR
Cost-to-income ratio	<45%
Cost of interest bearing liabilities	<8%
ROE	>30%
Equity ratio	>27%
EBITDA	17.6 m EUR
Profit before tax	12.9 m EUR
Dividend payout ratio	>50%

ON TRACK TO ACHIEVE COMPANY'S TARGETS

JULY, 2021 New bond issue via private placement in the amount of EUR 5 million with coupon rate of 9.75;

OCTOBER, 2021 Initial public offering on Nasdaq Riga stock exchange (EUR 8.09 million gross proceeds);

OCTOBER, 2021 redeemed EUR 5 million bonds (ISIN LV0000802213) issued in 2016 with 14% coupon rate ;

NOVEMBER, 2021 the bonds of EUR 5 million (ISIN LV0000802379) issued in 2019 with coupon rate of 14% will be redeemed before maturity.

In total, most expensive bonds (EUR 10 million in total) will be redeemed, thus, reducing the company's cost of financing and implementing measures to achieve the Company long-term targets.

UPDATES

• Acquisition of AS Moda Kapitāls pawnshop portfolio almost finished (23 from 25 branches takeover completed)
• Further enhancing the product offering: the limits of the consumer loans have been tactically and selectively increased up to EUR 7,000 and the maximum tenure of new consumer loans has been extended to 7 years
• New product: VIZIA credit line launched

SELECTED FINANCIALS

EBITDA

Total revenue, quarterly cumulative

Profit before tax

* EBITDA and PBT for Q3 2020 is higher due to a reversal of provisions for doubtful debts created at the beginning of the Covid-19 pandemic

1 st and 2nd wave of COVID-19 restrictions in Latvia

CONSUMER LOANS

Average loan*

Weighted average term of loans issued Non-performing loan ratio

* Average consumer loan balance for one client at the end of period.

PAWN LOANS

^{65 67 67 62 70 68 65 69 73} Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Average loan amount € +5 +8% +3 +4%

Redemption rate*

* Items redeemed or extended within 2 months since issuance.

1 st and 2nd wave of COVID-19 restrictions in Latvia

RETAIL OF PRE-OWNED GOODS*

Number of items sold

Sales split by product category (2021 9M)

* Excluding wholesale of precious metals (scrap)

Consolidated income statement

INCOME STATEMENT, EUR'000		2021	Change	2020	2021	Change
	Q2	Q3	%	9M	9M	%
Total revenue	5,918	6,463	9%	17,003	18,399	8%
Cost of sales	-1,015	-849	-16%	-3,169	-2,612	-18%
Credit loss expense**	-570	-956	68%	-1,467	-2,240	53%
Interest expenses and similar expenses	-706	-885	25%	-2,517	-2,746	9%
Gross profit	3,627	3,773	4%	9,850	10,801	10%
Selling expenses	-1,443	-1,524	6%	-3,744	-4,292	15%
Administrative expenses	-1,070	-1,051	-2%	-2,496	-3,085	24%
Other operating income	11	29	164%	45	56	24%
Profit before tax	1,125	1,227	9%	3,655	3,480	-5%*
Income tax expense	-299	-201	-33%	-495	-824	66%
Net profit	826	1,026	24%	3,160	2,656	-16%
EBITDA	2,095	2,367	13%	6,924	7,005	1%

* PBT for Q3 2020 is higher due to a reversal of provisions for doubtful debts created at the beginning of the Covid-19 pandemic

** For the purpose of comparison, other operating expenses are reclassified to credit loss expense as major part of other operating expenses are losses from cession of non-performing loans (debt sales).

*** Data reflected according to restated comparatives in newest FS's.

Consolidated balance sheet

BALANCE SHEET, EUR'000	2020.12.31	2021.09.30	Change
Fixed and intangible assets	836	789	-6%
Loans to related paries	474	-	-100%
Net loan portfolio	34,674	38,183	10%
Inventory and scrap	1,534	1,797	17%
Other assets	655	746	14%
Cash	4,592	2,541	-45%
Right -of -use assets	3,194	3,013	-6%
TOTAL ASSETS	45,959	47,069	2%
EQUITY	9,251	8,696	-6%
Share capital and reserves	4,000	4,000	0%
Retained earnings	1,354	2,040	51%
Profit/loss for the current year	3,897	2,656	-32%
LIABILITIES	36,708	38,373	5%
Interest -bearing debt	31,151	33,290	7%
Trade payables and other liabilities	2,121	1,751	-17%
Lease liabilities for right -of -use assets	3,436	3,332	-3%
TOTAL EQUITY AND LIABILITIES	45,959	47,068	2%

FINANCIAL RATIOS

**Annualized

restrictions in Latvia

ROE**

Interest coverage ratio*

Appendix

Bonds 18.4

DIVERSIFIED AND SUSTAINABLE CAPITAL STRUCTURE

Active MINTOS investor map, Q3 2021

DelfinGroup has more than 70,000 investors in Mintos from 79 countries

Bond financing track record

Dividends Regular cash distribution to shareholders

The full DelfinGroup dividend policy is available on the website https://www.delfingroup.lv/governance

DIVIDEND POLICY

Quarterly dividends

Up to 50% from the company's consolidated quarterly profit

Annual dividends

In an amount ensuring an optimal capital structure =

Dividends

At least 50% from the company's consolidated profit

COVID-19 FOLLOW UP INFORMATION

During COVID-19 lockdown:

• AS DelfinGroup has taken all mandatory and recommended security measures in relation to pandemic COVID-19;
• All services offered by Banknote and Vizia are available to customers;
• All business operations are technologically enabled to be carried out using remote work;
• At present, the vaccination rate for the branch employees is at 95% level, but as of 15 November 100% of branch employees will have an interoperable vaccination or recovery certificate in full scope.

DISCLAIMER

This presentation is ofselective nature and is made to provide an overview ofthe Company's(AS DelfinGroup and itssubsidiaries) business.

Unlessstated otherwise,this presentationshows informationfromconsolidated perspective.

Facts and information used in this presentation might be subject to revision in the future. Any forwardlooking informationmay be subject to change as well.

This presentation is not a legally binding document, and the Company has no liability for any direct or indirectlossfrom the use of this presentation.

This presentation does notintend to contain all the informationthatinvestorsmay require in evaluating the Company. Investorsshould read publicly available information regarding the Company to make an investment decision.

AS DelfinGroup Skanstesstreet 50A Riga, Latvia, LV -1013

aldis.umblejs@delfingroup.lv (+371) 66 15 50 06 www.delfingroup.lv