Data Science. Credit Scoring.

Digital Finance
Group overview
LEADING INTERNATIONAL FINTECH COMPANY

Innovative Digital Finance (ID Finance) Global expansion and unique registered clients
MX 2017
Founded: 2012 BR 2016 3.7m
Employees: 400+
Key facts PL 2015
Geographic presence: 8 countries
SP 2015
Products: consumer finance provider
GE 2014

KZ 2014

BL 2012
Build an international data-driven financial RU 2012
Mission institution to provide financial services to the
underbanked

Jul-14

Jul-16
Sep-12

May-13
Jul-13
Sep-13

May-14

Sep-14

May-15
Jul-15
Sep-15

May-16

Sep-16

May-17
Jul-17
Nov-12

Nov-13

Nov-14

Nov-15

Nov-16
Mar-13

Mar-14

Mar-15

Mar-16

Mar-17
Jan-13

Jan-14

Jan-15

Jan-16

Jan-17
Scalable model: launch in new geography within Financial highlights
3 months

Exceptional traction: net loan portfolio grew at a $56m

279% CAGR H1 2014 H1 2017
$36m
High client loyalty: 90% of new clients generate
repeat business. 853
$16m
Investment
High Return on Marketing Investment:
highlights $4.4 cash net income from $1 invested into CAC 531
$ 7m
$ 3m 388
High ROAE: 60% in H1 2017 -$1m
221 250
High profitability: $16m of net profit expected in 92 133
36 68
2017 14 5 21

Technology and data driven: Proprietary scoring 2014 2015 2016 2017F 2018F 2019F
model and in-house IT platform
Issuance ($m) Revenue ($m) Profit after tax
2
Our history
RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY

Loan issuance dynamics

2012 2013 2014 2015 2016

$ 0.2m $ 1.7m $ 13.6m $ 35.9m $92.5m

Launch and risk optimisation CIS expansion European expansion LATAM expansion

Russia Georgia Spain Brazil

Scoring and risk-management Kazakhstan Poland New products:
Round A: $3.5m Installment loans Round B: $6.0m AmmoPay and Solva

Major factors for effective scaling

Professional and motivated Centralised IT and risk- Monitoring of key indicators in

global and local teams infrastructure real time

3
Strong management team
GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS
Boris Batin, PhD
Co-founder, Chief Executive Officer (CEO)
14 years of work experience in banking and finance
Previously held various positions at Deutsche Bank,
Renaissance Capital and RBS within debt capital markets
in London and Moscow
Graduated from Imperial College with a degree of Master in
Graduated from Cambridge University with a degree of
Master in Economics
Ekaterina Kazak
Chief Risk Officer (CRO)
10 years of work experience in risk management
Previously worked as Head of Russia & CIS Experian
Analytics
Graduated from Moscow State University of Economics,
Logismarket, Socialcar, worked in MNC (Nestl) and in early
Statistics and Informatics
Alexander Dunaev, CFA
Co-founder, Chief Operational Officer (COO)
Over 10 years of experience in banking and finance
Previous experience: Deutsche Bank, London
Holds Chartered Financial Analyst degree
Finance
Alessandro Ceschel
Chief Marketing Officer (CMO)
11 years of professional experience in Digital Marketing
and international IT Projects
Previously successfully developed online internet
businesses B2C, B2B and P2P in Spain Ulabox,
stage startups
Graduated from Padova University with a Master in
Industrial Engineering and Business Administration
David del Pozo Calleja
Chief Financial Officer (CFO)
26+ years of experience in managing investments and
finance departments
Previous experience in Inversis Bank and ING Direct Bank
(CFO)
Graduated from Complutense University (Madrid) in
Economics
Pavel Shareyko
Chief Technical Officer (CTO)
13 years of experience in software development, including
development of high-load applications and financial
systems
Previous experience: Lead developer at Itransition
Graduated from Belorussian State University
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Product Portfolio
OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS
High margin

Minimum
Target lending market margin given
borrower risk

Banks
maximum
margin

Banks target
lending market
Low margin

Low risk Medium risk High risk

5
Highly efficient IT & risk-management system
ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT

Risk management present at every step of client life cycle ID Finance taps into global and local pools of information

Client acquisition

Fraud prevention Scoring and fraud-analysis

Legal support Client management

CLIENT LIFE CYCLE

Collections Pre-collections

10,000+ 98% 70% 90%

Data points are collected and Applications are processed Of the debt recovery achieved Of clients become loyal
analyzed in real time automatically in-house through efficient client customers through
management system effective CRM system

6
Client acquisition funnel remains robust
HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY

Conversion rates
H1 2016 H1 2017 Historical data
For H1 2017

15
Website visitors, #m 10,8

Website 9m 11m
10% 10
8,8

4,5
visitors 5
0,2
1,6
Conversion to 0
applications H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

1,5
Applications, #m 1,08
0,86
31% 1,0
0,49
Applications 0.9m 1.1m 0,5
0,14
0,02
0,0
Approval rate H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

400 338
Number of loans issued, #k

Number
300

90% 200
186

of loans 186k 338k

100
76

issued 0
1,6 16

Retention rate H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

100
Amount of loans issued, $m $80
4.3% 80
Amount of 60
$34m $80m $34
loans issued 40
$14
20
Loan marketing $0,4 $3,6
0
cost* H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

* Marketing costs divided by amount issued

7
Client acquisition channels
COST EFFECTIVE ACQUISITION VIA OPTIMAL MIX OF ACQUISITION CHANNELS

Highlights MoneyMan search requests (#k)

Well-diversified and balanced client acquisition channels 6 000

Focus on organic traffic growth and increasing the loyalty

rate in all countries of presence 5 000

Strong brand recognition improvement

4 000
55%
Average H-o-H
$1 issued to a new client generates $6+ of loans issued per growth of
client life 3 000 search requests

5 112

x4.4 925k
2 000
3 643

1 000
1 774
881 1 158
Return on $1 invested Brand search requests
-
in CAC per month H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Loans acquisition channels as of Q1 2017 Amount issued ($k) and marketing cost (%)
90 15%
$80
80 13%
9%
25% Paid traffic 70
11%
60
9%
29%
SEO, SMM, referrals 50
7%
40
Affiliates 4,3%
5%
30
3%
Direct marketing 20
38% 10 1%

0 -1%
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
8
Portfolio quality
ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH

Net outstanding portfolio (July 2017) Revenue structure (July 2017)

6%1% 4%1%
10% 9%

9%
Net portfolio 47% Revenue
19% $56.4m 52%
$10.3m

25%
18%

Russia Kazakhstan Georgia Spain Poland Brazil

Historical group NPL* rates Historical group level of NPLs*

50% $300m
45%
43,4%
$250m
40%
$19,4m
35%
$16.5m $200m
30%
23,5% $150m
25%

20% $240m $221m

14,6% $100m
15% 12,1% 11,2%
9,8% 10,1% 10,6%
$193m 8,1% $176m
10% $50m
5%

0% $0m
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 Jul-17 Loans issued since launch NPL as of H1 2017 Repaid and performing
loans H1 2017

* Loans with payments overdue 90+ days are considered non-performing loans (NPLs)
9
Geographical expansion
STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS

Launch Population (m) Internet users (m) Mobile users (m)

Russia 2012 144 103 103

Kazakhstan 2014 18 10 15

Georgia 2014 4 2 3

Spain 2015 46 37 40

Poland 2015 38 27 27

Brazil 2016 208 123 130

Mexico 2017 127 73 86

Colombia Q4 2017 48 27 33

USA 2018 321 239 258

Peru 2019 31 13 19

Total 985 653 714

Current presence Strategic focus

Geographic diversification 2013-2019

Loans issued. 2013 Loans issued. July 2017 Loans issued. 2019F

1%

20% 30%
35%
Share of Share of Share of
European and European and European
LatAm LatAm and LatAm
0% 21% 65%

100,0% 79% 35%

Russia and CIS Europe Americas

* 2015 WorldBank, UNdata, eMarketer; 2016 Statista, Budde 10
Product diversification
FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS

Strategy focus

Focus on Larger market

Longer term
prime users capacity
Client profile Market size Loan term

Larger volume Lower risk % Lower rates

Loan volume NPL level Competitive

advantage

Product diversification 2013-2019

Loan issued. 2013 Loan issued. July 2017 Loan issued. 2019F

20%

Share of Share of 44% Share of

long-term long-term long-term
loans 0% 56% loans 44% loans 80%

80%
100,0%

Single pay loans Installment & POS loans

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 Boris Batin
Co-founder, CEO @ ID Finance
Boris.batin@idfinance.com

Thank you for your

attention!

Alexander Dunaev
Co-founder, COO @ ID Finance
Alexander.dunaev@idfinance.com

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