Delfin Group — Investor Presentation 2018

Nov 2, 2018

INVESTOR PRESENTATION 2018Q3 RESULTS

November, 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 2018Q3 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 online store for lombards segment products. Goods are available at online site veikals.banknote.lv

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

Signed contract with AS Baltic International Bank for a new round of financing, which is intended to provide asset and share capital collateral security and target interest rate of 11% per annum.

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

LOANS ISSUED, EURm

CONSUMER LOANS 61% of loans issued by value in 2018Q3

16,1

CONSUMER LOANS

PAWN LOANS 39% of loans issued by value in 2018Q3

LOANS ISSUED, EURm

NET LOAN PORTFOLIO, EURm*

* Includes car title loan and mortgage loan legacy portfolios

PAWN LOANS

stable performance of lombard operations.

KEY FINANCIALS

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

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

KEY FINANCIALS: PROFITABILITY

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

%, y-o-y	2018Q3	2017Q3	Income statement, EUR'000
6.4%	11 039	10 377	Interest and similar income
8.0%	1 125	1 042	Gross profit from sale of goods**
6.5%	12 164	11 419	Gross profit
-2.1%	-4 611	-4 709	Selling expense
16.4%	-1 960	-1 684	Administrative expense
-54.8%	-420	-929	Net other income / (expense)
26.3%	5 173	4 097	EBITDA
35.3%	-0.2	-0.1	Depreciation
31.0%	-1 700	-1 298	Interest and similar expense
-97.3%	-15	-558	Taxes
54.3%	3 458	2 241	NET PROFIT

* 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

%, y-o-y	2018Q3	2017Q3	Balace sheet, EUR'000
10.4%	626	567	Fixed and intangible assets
7.8%	1 335	1 238	Loans to related parties
14.9%	19 002	16 545	Net loan portfolio
62.3%	1 151	709	Inventory and scrap
-19.2%	391	484	Other assets
-33.5%	2 074	3 119	Cash
8.5%	24 579	22 662	TOTAL ASSETS
0.0%	1 500	1 500	Share capital and reserves
-65.8%	446	1 306	Retained earnings
54.3%	3 458	2 241	Profit/loss for the current year
7.1%	5 404	5 047	Equity
11.6%	18 301	16 395	Interes-bearing debt
-28.4%	874	1 220	Trade payables and other liabilities
8.9%	19 175	17 615	Liabilities
8.5%	24 579	22 662	TOTAL EQUITY AND LIABILITIES

FINANCING STRUCTURE

Diversified financing structure with established investor demand.

Interest-bearing debt	2017Q4, EUR'000*	2018Q3, EUR'000*	Interest rate, %	Maturity
Secured bonds	1 000	0
Unsecured bonds	3 490	3 411	15.00%	2020.12
Unsecured notes	3 573	4 496	14.00%	2021.10
Peer-to-peer lending platform	8 105	10 226	11%-13.5%	According to issued loans
Leases	175	164	Euribor + 3,5%	Up to 3 years
Accrued interest and bonds commissions	0.004	0.006
TOTAL	16 346	18 297

* As at the end of the period.

kristaps.bergmanis@expresscredit.lv