Delfin Group

Earnings Release • Aug 3, 2018

INVESTOR PRESENTATION 2018Q2 RESULTS

August, 2018

DISCLAIMER

This presentation is of selective nature and is made to provide an overview of the Company's (SIA "ExpressCredit" and its subsidaries) business, based on 2018Q2 results.

Unless stated otherwise, this presentation shows information from consolidated perspective.

Facts and information used in this presentation might be subject to revision in the future. Any forward-looking information may subject of change as well.

This presentation is not a legally binding document and none of the Company have any liability for any direct or indirect loss from the use of this Presentation.

This presentation does not purport to contain all the information that 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.

HIGHLIGHTS

Launch of VIZIA full scale operations, that will increase market share in distance lending.

Active participation in Alternative Financial Service Association of Latvia for information communication with respect to legislation initiatives.

Redemption of secured bonds in the amount of EUR 500 thousand and termination of commercial collateral.

Loans issued, EURm

Loans portfolio in total, EURm

EBITDA, EURm

MARKET OVERVIEW

Loan portfolio of Latvian non-bank lenders, 2017

According to The Alternative Financial Services Association of Latvia prognosis the newly issued non-bank loans in 2018 might reach 570-590 million euros, with total loan portfolio increasing to 625- 635m EUR.

EUR 243m

Consumer loans

EUR 39m

Mortgage

EUR 324m

Leasing, car title

EUR 7m

Pawn loans

Source: Consumer Rights Protection Centre

MARKET OVERVIEW: CONSUMER LOANS

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

** Based on loan portfolio as at the end of 2017

MARKET OVERVIEW: PAWN LOANS

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

** Based on loan portfolio as at the end of 2017

CONSUMER LOANS 59% of loans issued by value in 2018Q2

CONSUMER LOANS

PAWN LOANS 40% of loans issued by value in 2018Q2

LOANS ISSUED, EURm

NET LOAN PORTFOLIO, EURm*

* Includes car title loan and mortgage loan

PAWN LOANS

KEY FINANCIALS

2018H1 was the best in the Group's history in terms of turnover and profitability.

Cash inflow Cash outflow 8,6 10,3 8,8 12,6 6,7 7,7 8,6 10

2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2

KEY FINANCIALS: PROFITABILITY

New changes in corporate income tax has positive impact on profitability and financial ratios.

Income statement, EUR'000	2017Q2	2018Q2	%, y-o-y
Interest and similar income	6 727	7 238	7.6%
Gross profit from sale of goods**	663	709	6.9%
Gross profit	7 390	7 947	7.5%
Selling expense	-2 892	-3 026	4.6%
Administrative expense	-1 066	-1 253	17.5%
Net other income / (expense)	-868	-232	-73.3%
EBITDA	2 565	3 436	34.0%
Depreciation	-0.1	-0.1	27.7%
Interest and similar expense	-818	-1 149	40.5%
Taxes	-304	-14	-95.4%
NET PROFIT	1 443	2 273	57.51%

* Part of interest income reclassified as gross profit from sale of foreclosed items for comparability with historic data.

** Sale of foreclosed items.

KEY FINANCIALS: BALANCE

Balace sheet, EUR'000	2017Q2	2018Q2	%, y-o-y
Fixed and intangible assets	569	607	6.7%
Loans to related parties	1 263	1 332	5.5%
Net loan portfolio	15 182	17 591	15.9%
Inventory and scrap	686	1 091	59.0%
Other assets	442	239	-45.9%
Cash	842	1 954	132.1%
TOTAL ASSETS	18 984	22 814	20.2%
Share capital and reserves	1 500	1 500	0.0%
Retained earnings	1 306	447	-65.8%
Profit/loss for the current year	1 443	2 273	57.5%
Equity	4 249	4 220	-0.7%
Interes-bearing debt	13 696	17 357	26.7%
Trade payables and other liabilities	1 039	1 237	19.1%
Liabilities	14 735	18 594	26.2%
TOTAL EQUITY AND LIABILITIES	18 984	22 814	20.2%

	Interest-bearing debt	2017Q4, EUR'000*	2018Q2, EUR'000*	Interest rate, %	Maturity
	Secured bonds	1	0
	Unsecured bonds	3 490	3 390	15.00%	2020.12
FINANCING	Unsecured notes	3 573	4 496	14.00%	2021.10
STRUCTURE	Peer-to-peer lending platform	8 105	9 310	11%-13.5%	according to issued laons
Diversified financing structure with established investor demand.
	Leases	175	159	Euribor + 3,5%	up to 3 years
	Accrued interest and bonds commissions	4	3
	TOTAL	16 347	17 358
	* As at the end of the period.

Ltd. "ExpressCredit" Raunas iela 44 k-1 Riga, Latvia LV-1039

kristaps.bergmanis@expresscredit.lv

+371 66 15 50 06