Delfin Group

Investor Presentation • May 3, 2019

INVESTOR PRESENTATION 2019Q1 RESULTS

May, 2019

DISCLAIMER

This presentation is of selective nature and is made to provide an overview of the Company's (SIA "ExpressCredit" and its subsidiaries) business, based on 2019 Q1 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 be subject to change as well.

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

This presentation does not intend to contain all the information that investors 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.

DEFINITIONS FOR ALTERNATIVE PERFORMANCE MEASURES*

EBITDA - Earnings before interest, taxes, depreciation and amortization calculated as Net Income + Interest + Taxes + Depreciation + Amortization. Used as a measure of corporate performance as it shows earnings before the influence of accounting and financial deductions. EBITDA Margin - Operating profitability as a percentage of its total revenue, calculated as EBITDA / (Interest income + Gross profit from sale of foreclosed items). Used as a profitability measure that is factoring out the effects of decisions related to financing and accounting. NET Profit Margin - How much net profit is generated as a percentage of revenue, calculated as Net Profit / Revenue. Used as an indicator of a company's financial health.

Net Debt - How well a company can pay all of its debts if they were due immediately calculated as Short-term Debt + Long-term Debt - Cash and Cash Equivalents. Used as a liquidity measure to assess if a company will need additional funding.

Interest-Bearing Debt - liabilities that require the payment of interest, contains bonds, other loans, leasing liabilities etc. Interest-Bearing Debt has a priority over other debts.

The goal of alternative performance measures is to provide investors with performance measures that are widely used when making investment decisions and comparing the performance of different companies.

* As stipulated by FCMC Regulations on Alternative Performance Measures

HIGHLIGHTS

9,0

2018Q1

2018Q2

ExpressCredit is the only non-bank lender included in the Gold level of the State Revenue Service for In-Depth Cooperation Programme (qualified on March 2019).

Maximum loan size increased to EUR 5000 for consumer loans.

BDO Assurance became the new audit partner.

Loans issued, mEUR

2018Q3

Loans portfolio in total, mEUR

EBITDA, mEUR

MARKET OVERVIEW: PAWN LOANS

Pawn loan portfolio in EUR million in 2017H1 and 2018H1, Industry* and ExpressCredit comparison.

In 2018H1 40% of all pawn loans issued in Latvia were issued by ExpressCredit.

The market share is growing y-o-y.

2017H1, mEUR

2018H1, mEUR

* Source: Consumer Rights Protection Centre

MARKET OVERVIEW: CONSUMER LOANS

Amount of consumer loans outstanding in EUR million as at 2017H1 and 2018H1, Industry* and ExpressCredit comparison.

Amount of consumer loans issued in EUR million as at 2017H1 and 2018H1, Industry* and ExpressCredit comparison.

ExpressCredit* grows faster than the industry, having 5,8%** market share.

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

** Based on loan portfolio as at the end of 2018H1.

2017H1, mEUR

2018H1, mEUR

CONSUMER LOANS 59% of loans issued by value in 2019Q1

17,7

CONSUMER LOANS

PAWN LOANS 41% of loans issued by value in 2019Q1

2018Q1	4,1
	1,9
2018Q2	4,1
	1,9
2018Q3	3,9
	1,9
	4,1
2018Q4	2,1
2019Q1	4,3
	2,1

LOANS ISSUED, mEUR

NET LOAN PORTFOLIO, mEUR*

* Includes car title loan and mortgage loan legacy portfolios

PAWN LOANS

stable performance of pawnshop operations.

KEY FINANCIALS

2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1

KEY FINANCIALS: PROFITABILITY

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

Income statement, EUR'000	2018Q1	2019Q1	%, y-o-y
Interest and similar income	3 542	3 690	4%
Gross profit from sale of goods*	335	400	19%
Gross profit	3 877	4 090	5%
Selling expense	-1 440	-1 101	-23%
Administrative expense	-605	-707	17%
Net other income / (expense)	-135	-22	-84%
EBITDA	1 697	2 260	33%
Depreciation	-53	-29	-45%
Interest and similar expense	-549	-881	60%
Taxes	0	0	0%
Adjusted** NET PROFIT	1 095	1 350	23%

* Sale of foreclosed items.

** Adjusted in 2019Q1 for changes in tax legislation for comparability with historic data.

KEY FINANCIALS: BALANCE

During 2019Q1 shareholders decided to pay out dividends in the amount of 1,5 mio EUR

Balance sheet , EUR'000	2018Q4	2019Q1	%, q-o-q
Fixed and intangible assets	603	652	8%
Loans to related parties	1 072	1 081	1%
Net loan portfolio	20 151	20 761	3%
Inventory and scrap	901	1 111	23%
Other assets	454	554	22%
Cash	3 489	2 686	-23%
TOTAL ASSETS	26 670	26 845	1%
Share capital and reserves	1 500	1500	0%
Retained earnings	398	2 616*	657%
Profit/loss for the current year	4 062	1 350*	-67%
Equity	5 960	5 466	-8%
Interest-bearing debt	19 556	20 042	2%
Trade payables and other liabilities	1 154	1 338	16%
Liabilities	20 710	21 379	3%
TOTAL EQUITY AND LIABILITIES	26 670	26 845	1%

* Adjusted in 2019Q1 for changes in tax legislation for comparability with historic data.

FINANCING STRUCTURE

Diversified financing structure with established investor demand.

In March 2019, ExpressCredit decreased the nominal value of the bonds issue ISIN LV0000801322 for EUR 437 500 thus marking the start of quarterly repayments of the principal.

Interest-bearing debt	2018Q4, EUR'000*	2019Q1, EUR'000*	Interest rate, %	Maturity
Unsecured bonds	3 411	3 063	15,0%	2022/12
Unsecured notes	4 496	4 996	14,0%	2021/10
Peer-to-peer lending platform	11 492	10 821	11% - 13,5%	According to issued loans
Leases	149	135	EURIBOR+ 3,5%	Up to 3 years
Accrued interest and bonds commissions	8	5
TOTAL	19 555	19 021

* As at the end of the period.

kristaps.bergmanis@expresscredit.lv