Delfin Group

Investor Presentation • Feb 27, 2018

INVESTOR PRESENTATION FOR 2017Q4 RESULTS

February 2018

Disclaimer

• This document (the "Presentation'') has been prepared for the sole purpose of providing an overview of 2017Q4 results of SIA ExpressCredit, which, together with its subsidiaries, is further referred to herein as "ExpressCredit" or the "Company", to current and prospective investors in bonds issued by the Company.
• This Presentation is of selective nature and is made to provide an overview of the Company's business, based on 2017Q4 results. Unless stated otherwise, the information in this Presentation is provided from consolidated perspective.
• This Presentation does not purport to contain all the information that a current or prospective investor may require in evaluating the Company. Investors should read publicly available information regarding the Company as well as the full prospectus describing a particular bonds issue ("the Prospectus''). Investors' attention is drawn to the risk factors described in the section "Risk Factors'' of the Prospectus.
• This Presentation contains forward-looking information that may involve risks and uncertainties concerning the Company's growth and profitability in the future. No reliance should be placed on any statements, estimates and projections regarding future performance or developments, including, without limitation, in relation to expected market developments, estimated financial figures of the Company, or any other forward-looking statements. Actual events or results may materially differ from those described in this Presentation. No one should therefore unduly rely on these forward-looking statements as they reflect only the judgment of the Company's management at the date of this Presentation and are not intended to give any assurances or comfort as to future results. The facts and information contained in the Presentation might be subject to revision in the future. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.
• None of the Company or any of its parents or subsidiaries or any of their directors, officers, employees and advisors nor any other person (i) accepts any obligation to update any information contained herein or to adjust it to future events or developments; (ii) makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this Presentation; (iii) shall have any liability whatsoever, in negligence or otherwise, for any loss howsoever arising, directly or indirectly, from the use of this Presentation.
• This Presentation does not constitute an offer or an invitation for the sale or purchase of securities or assets in any jurisdiction, and neither this document, nor anything contained herein, shall form the basis of, or be relied upon in connection with any contract or commitment whatsoever.

Snapshot as at 31 December 2017

2017Q4 highlights

Launched online lending operations thus attracting new clients and improving service for existing clients

Changed approach and cooperation with debt recovery companies improving non-performing loans ratio in portfolio

Simplicity, accessibility, respect and progress – new values reworked along with mission and vision in accordance with the new services offered

2017Q4 highlights: Market overview latest update

Source: Consumer Rights Protection Centre

1) Based on loan portfolio as at the end of 2017H1

2) Loan portfolio data based on SIA ExpressCredit standalone net consumer and pawn loan portfolio excl. accrued interest

2017Q4 highlights: Consumer loans

• 1) Share of loans issued (by value) during the two preceding quarters which are more than 90 days overdue as at the end of the respective quarter; Changed approach and cooperation with debt recovery companiesimproving non-performing loans ratio in portfolio
• 2) Average loan tranche size per issue transaction during the period
• 3) Average loan size per customer in the portfolio as at the end of the period
• 4) Weighted average term of loans issued during the period 6

2017Q4 highlights: Pawn loans

1) Includes car title loan and mortgage loan legacy portfolios

2) Items being redeemed or extended within 3 months since issuance, by value of loans issued excl. item purchasing 3) Average loan size per issue transaction during the period 7

Loan portfolio cash flow

Cash outflow Cash inflow

Financing structure

Interest-bearing debt	1 2017Q3 , EUR'000	2017Q41 , EUR'000	Interest rate, %	Maturity
 Secured bonds	1,250	1,000	14.0%	11.2018
 Unsecured bonds	3,423	3,490	15.0%	12.2020
 Unsecured notes	2,326	3,573	14.0%	10.2021
 Peer-to-peer lending platform	7,770	8,105	11.0%-13.5%	Mimicking term structure of underlying loans
 Private loans	1,500	0	12.9%-14.0%	Up to 05.2018
 Leases	126	175	3.5%+EURIBOR	Up to 3 years
 Accrued interest and bonds commissions	0	4
TOTAL	16,396	16,346

Key financials

Income statement, EUR'000	2016Q41	2017Q41	%, y-o-y
Interest and similar income	3,106	3,246	4.5%
from sale of goods2 Gross profit	835	611	(26.8%)
Gross profit	3,941	3,858	(2.1%)
Selling expense	(1,896)	(1,213)	(36.0%)
Administrative expense	(406)	(613)	50.9%
Net other income / (expense)	(751)	(919)	22.3%
EBITDA	887	1,112	25.3%
Depreciation	(32)	276	(972.8%)
Interest and similar expense	(455)	(523)	14.9%
Taxes	(98)	(140)	43.2%
NET PROFIT	303	725	139.0%

Balance sheet, EUR'000	2016Q4	2017Q4	%, y-o-y
Fixed and intangible assets	582	618	6.2%
Loans to related parties	1,386	1,302	(6.0%)
Net loan portfolio	11,555	15,844	37.1%
Inventory and scrap	701	683	(2.6%)
Other assets	489	667	36.4%
Cash	1,279	2,220	73.5%
TOTAL ASSETS	15,992	21,333	33.4%
Share capital and reserves	1,500	1,500	-
Retained earnings	345	233	(32.6%)
Profit/loss for the current year	961	1,969	105.0%
Equity	2,806	3,702	31.9%
Interest-bearing debt	12,372	16,346	32.1%
Trade payables and other liabilities	815	1,285	57.7%
Liabilities	13,186	17,631	33.7%
TOTAL EQUITY AND LIABILITIES	15,992	21,333	33.4%

1) Part of Interest income reclassified as Gross profit from sale of foreclosed items for comparability with historic data 2) Sale of foreclosed items