Delfin Group

Investor Presentation • Aug 4, 2020

INVESTOR PRESENTATION

2020 Q2 RESULTS

August, 2020

This presentation is of selective nature and is made to provide an overview of the Company's (SIA DelfinGroup and its subsidiaries) business.

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.

DISCLAIMER

*Based on reported annual revenue of licensed non-bank consumer lenders in 2019

HIGHLIGHTS

In 2020Q2, Group has decreased issuance level by 26.3% compared to 2020Q1, due to the impact of COVID-19.

22.2% improvement in y-o-y Q2 EBITDA has been achieved.

* Loan portfolio data based on DelfinGroup net consumer loan portfolio excl. accrued interest.

** Based on consumer loan portfolio as at the end of 2019.

MARKET OVERVIEW

DelfinGroup* grows faster than the industry, having ~7%** market share.

CONSUMER LOANS

CONSUMER LOAN PORTFOLIO, DELFINGROUP VS. INDUSTRY*

AMOUNT OF CONSUMER LOANS ISSUED, DELFINGROUP VS. INDUSTRY*

*Source: Consumer Rights Protection Centre.

mEUR

mEUR

CONSUMER LOANS

* Loan portfolio data based on DelfinGroup net consumer loan portfolio incl. accrued interest.

LOANS ISSUED, mEUR NET LOAN PORTFOLIO*, mEUR

In 2020Q2, portfolio was slightly decreased due to cautious issuance level in March to May as a response to COVID-19.

CONSUMER LOANS

AMOUNT OF PAWN LOANS ISSUED, DELFINGROUP VS INDUSTRY*

*Source: Consumer Rights Protection Centre.

0

10

20

30

40

50

60

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

The market share of issued loans is growing every year.

PAWN LOAN PORTFOLIO, DELFINGROUP VS INDUSTRY*

MARKET OVERVIEW

In 2019, 42% of all pawn loans issued in Latvia were issued by DelfinGroup.

PAWN LOANS

PAWN LOANS

Group has decreased issuance level by 26.7% compared to 2020Q1 for secured lending, due to the impact of COVID-19.

Thus portfolio have recovered at the end of 2020Q2 and compared to 2020Q1 have not changed.

PAWN LOANS

* Items begin redeemed or extended within 3 months since issuance, by value of loans issued excl. item purchasing.

Stable customer base and stable performance of pawnshop operations.

DETAILED COVID-19 IMPACT DINAMICS

TOTAL LOANS ISSUED, mEUR

As a response to COVID-19 during March to May Group applied cautious issuance approach. In June issuance have increased and in July reached its highest level €4.6 million. Comparing to July 2019 issuance level have increase by 12.1% in July 2020.

CONSUMER LOANS ISSUED, mEUR PAWN LOANS ISSUED, mEUR

CONSUMER AND PAWN LOANS ISSUED

DETAILED COVID-19 IMPACT DINAMICS

* Loan portfolio data based on DelfinGroup net consumer loan portfolio incl. accrued interest. ** Includes car title loan and mortgage loan legacy portfolios.

In 2020Q2, portfolio was slightly decreased due to cautious issuance level in March to May as a response to COVID-19.

LOANS OUTSTANDING

NON-PERFORMING LOANS RATIO - CONSUMER LOANS

Due to stable and reliable customer base non-performing loan ratio have stayed nearly constant.

KEY FINANCIALS

In line with historical pattern, also 2020Q2 delivered positive net cash flow.

FINANCIAL RATIOS

Sustainable financial performance.

INCOME STATEMENT, EUR'000	2019 H1	2020 H1	%, Y-O-Y
Interest and similar income	7 755	7 818	1%
Gross profit from sale of goods	811	933	15%
Cession result	(620)	(516)	(17%)
GROSS PROFIT	7 946	8 235	4%
Selling expense	(2 681)	(2 271)	(15%)
Administrative expense	(1 571)	(1 631)	4%
Net other income / (expense)	5	(70)	(1 500%)
EBITDA	3 699	4 263	15%
Depreciation	(114)	(489)	329%
Interest and similar expense	(1 200)	(1 707)	42%
Taxes	(340)*	(33)	(90%)
NET PROFIT	2 045	2 034	(1%)

KEY FINANCIALS: PROFITABILITY

Decreased cession result corresponds to improved evaluation and quality of issued loans.

Depreciation increased after incorporation of IFRS 16 on Right-of-use assets since 2019Q4.

Double-digit growth of comparable EBITDA. * Higher taxes in 2019Q2 related to dividend payout during 2019Q1.

BALANCE SHEET, EUR'000	2020 Q1	2020 Q2	%, Q-O-Q
Fixed and intangible assets	2 698	3 915*	45%
Loans to related parties	1 377	1 382	0%
Net loan portfolio	32 493	32 256	(1%)
Inventory and scrap	1 224	1 186	(3%)
Other assets	503	536	7%
Cash	2 037	1 958	(4%)
TOTAL ASSETS	40 332	41 233	2%
Share capital and reserves	1 500	1 500	-
Retained earnings	6 868	6 868	-
Profit/loss for the current year	1 038	2 034	96%
EQUITY	9 406	10 402	11%
Interest-bearing debt	27 317	25 587	(6%)
Trade payables and other liabilities	3 609	5 244*	45%
LIABILITIES	30 926	30 831	0%
TOTAL EQUITY AND LIABILITIES	40 332	41 233	2%

KEY FINANCIALS: BALANCE

Strong cash buffer.

Shareholders have increased DelfinGroup share capital to €4 million on July 28, 2020 by diverting retained earnings to strengthen the company's balance sheet.

* Increase of fixed assets and other liabilities mostly related to move to the new office building in Skanstes 50A, therefore, increased value of right-of-use assets and lease liabilities for right-of-use assefs.

* Part of unified securitization structure with ZAB Eversheds Sutherland Bitāns acting as the collateral agent. Collateral with total value 40.5m EUR

registered on December 2019.

** Weighted average interest rate for investments made on Mintos platform in DelfinGroup loans as at 30.06.2020. Weighted average interest rate have increased due to decrease of available investments on Mintos platform.

FINANCING STRUCTURE

Diversified financing structure with established investor demand.

In June 2020, DelfinGroup decreased the nominal value of the bonds issue ISIN LV0000801322 for EUR 437 500 thus continuing quarterly repayments of the principal.

Subscription for new bond issue ISIN LV0000802379 continued. Paid amount by the end of Q2: EUR 4 500 000.

Bond issue proceeds partly used to repay outstanding balance to Mintos.

INTEREST-BEARING DEBT	2020 Q1, EUR'000	2020 Q2, EUR'000	INTEREST RATE, %	MATURITY
Secured bonds II*	1 313	875	15%	12/2020
Secured bonds III*	4 952	5 000	14%	10/2021
Secured bonds IV*	3 569	4 500	14%	11/2022
Peer-to-peer lending platform Mintos*	16 959	14 687	12.3% (effective rate)**	According to issued loans
Leases	91	83	EURIBOR+ 3.5%	Up to 3 years
Private loans	484	480	14.0%	Up to 3 years
Accrued interest and bonds commissions	-51	-41
TOTAL	27 317	25 584

DEFINITIONS FOR ALTERNATIVE PERFORMANCE MEASURES*

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

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.

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.

• EBITDA deductions.
• EBITDA Margin
• Interest Coverage Ratio debt.
• NET Profit Margin
• Net Debt
• Net Equity

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

How much undistributed equity a company has, calculated as Equity minus Loans to shareholders and related parties. Represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off.

Profitability and debt ratio, calculated as Earnings before interest and tax / (Interest expense). Used to determine how easily a company can pay interest on its outstanding

SIA DelfinGroup Skanstes iela 50A

kristaps.bergmanis@delfingroup.lv

+371 66 15 50 06

www.delfingroup.lv