4finance Investor Presentation

December 2017

2

Disclaimer

While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forecasts, opinions and expectations contained herein, are fair and reasonable, no representation

or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither 4finance

nor any of 4finance`s advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its

contents or otherwise arising in connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may

change materially.

This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information

contained in this document, which neither 4finance nor its advisors are under an obligation to update, revise or affirm.

The distribution of this presentation in certain jurisdictions may be restricted by law. Persons into whose possession this presentation comes are required to inform themselves about and to observe any

such restrictions.

The following information contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or our future financial performance, including, but not limited to,

strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks,

uncertainties and other factors that may cause 4finance’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any

forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,”

“believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because

they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements,

possibly to a material degree. All forward-looking statements made in this presentation are based on information presently available to management and 4finance assumes no obligation to update any

forward-looking statements.

3

Topics

• The Market Opportunity

• The Business Today

• Our Areas of Focus• Driving near term performance

• Rapidly laying a foundation for the future

• Financial Summary

• Conclusion

4

The opportunity for 4finance is significant

• There are c.2.6 billion financially underserved across the world, including a large ‘aspirational near-prime’ segment of c.500 million

that remains hard to credit score/serve, but represents a promising opportunity for 4finance, in line with our core skill-sets

• This aspirational near-prime group is made up of to two main communities:

• Millennial generation, still possessing limited credit histories, that is changing fundamental expectations around how financial

products are designed and served, breaking old conventions

• Fast growing, aspirational and increasingly affluent middle class in emerging markets, exhibiting strong demand for financial

products and services they have historically not been able to access

• Breakthroughs in data science, analytics, low cost cloud computing and artificial intelligence are unlocking the ability to credit score

and serve these historically underserved

• Ubiquitous/inexpensive mobile internet access allows the delivery of sophisticated mobile financial products anytime and anywhere

• With our size, scope, expertise and financial strength, 4finance is uniquely poised to take advantage of this opportunity

5

Why 4finance is uniquely positioned

• Unique scale and expertise

• Well capitalised, disciplined and profitable

• Convenient, simple & transparent products with a mobile-first

focus, and a growing expertise in serving millennials

• Deep expertise in scoring customers with limited or no credit

history

• Increasingly diverse product suite capable of helping customers

mitigate short term cash flow needs, fund longer term and more

aspirational purchases and save for the future

• Automation and self service capabilities that allow us to offer

small ticket sizes efficiently and economically

• Access to a network of strategic partnerships and/or acquisitions

that can enable us to offer new products, new capabilities, new

channels

Automation and self

service capabilities

Deep scoring

expertise

Mobile

friendly

Multi-product multi-

region experience

Unique scale

and expertise

Simple,

transparent

products

Increasingly

diversified

product suite

Well capitalized,

profitable,

financially

disciplined

Access to

strategic

partnerships

6

5360

7481

63

49

2013 2014 2015 2016 9M'2016 9M'2017

Profit before tax

Track record of profitable growth

Interest income

149

220

318

393

287327

2013 2014 2015 2016 9M'2016 9M'2017

See appendix for definitions of key metrics and ratios

€m €m

8,800,000+Registered customers(1)

33,000,000+Online applications reviewed

€5,000,000,000+Loans issued

16Countries

of operation

>3,5009M 2017

full time

employees

Notes:

(1) Includes 1.4 million registered TBI Bank customers

(2) Issuance volumes to customers who have returned, ie taken out and repaid at least one prior loan

84%9M 2017 returning

customer business (2)

5Main lending

products, with

EU licensed bank

7

The Business Today

8

Note: (1) Net receivables as of 30/9/2017. Remaining 8% of net loan portfolio is SME lending within TBI Bank

Clear and simple product range

Consumer lending products

Single

Payment loan

Line of Credit

/ Credit Card

Instalment

loanPoint of Sale

% of net

receivables (1)

41% 2% 39% 10%

Typical amount €350 €1,200 €850 €500

Term Up to 30 - 65 days

depending on market

Open-ended revolving

credit line

Typically 3 – 36 months

depending on market

Up to 1 – 5 years

depending on market

Payment type Single payment

encompassing the principal

repayment and loan fee

Minimum monthly

repayment & flexible

additional repayment

Repayment in fixed monthly

instalments with amortising

principal

Repayment in fixed

monthly instalments

Pricing Monthly interest rates:

5% - 33% in Europe

30% - 40% in LatAm

Monthly interest rates:

c.3% (credit cards)

8.5% - 10% (online LOC)

Annual interest rates:

35% - 60% in LT, BG, RO

60% - 100% in others

Annual interest rates:

c.30% in Spain

30% – 50% in BG, RO

Extension Option to extend up to 30

days (payable up front)

Minimum-to-pay format in

some markets

Flexible payment options

as long as minimum

monthly payment is met

Option to delay the monthly

instalment by one monthn/a

Markets All 16 markets Bulgaria, Romania,

Finland, Latvia

10 markets Bulgaria, Romania, Spain

Deposit products

Bank Non-bank

94% 6%

€100k guarantee limit €5,250 limit

Current accounts and term

deposits (6 months av. term)

Current and term deposits

(up to 3 years)

Annual or at maturity Annual or at maturity

Annual rate: 0.5% - 2.6% Annual rate: 6.5% - 10%

n/a n/a

Bulgaria, Romania Sweden

9

Diversification by product and geography

Latvia8% Lithuania

2%Finland

5%

Sweden5%

Poland25%

Georgia4%

Denmark9%

Spain18%

Czech Republic5%

Bulgaria8%

Romania7%

Argentina2%

Other2%

9M17 interest income: €327m9M17 Net receivables: €556m

62% online / 38% banking

Single Payment Loans41%

Line of Credit / Cards2%

Instalment loans39%

Point of Sale10%

Bank (SME)8%

10

• Has at least one bank account

• Expenditure matches monthly income

• Little or no savings

• Limited credit history

• Employed, self employed or retired

• Underserved by traditional banks

• Uses financing for lifestyle choices or necessities

• Seeking transparency, speed and efficiency.

• Loyal - 84% of loans are issued to returning customers (9M’2017)

Client split by age (9M’2017)

1 loan

2 loans3 loans

4 and more

loans

Online customer profile

Applications by source

0.7%

12.4%

22.8%

31.4%

17.1%

9.8%

5.9%

0%

5%

10%

15%

20%

25%

30%

35%

18-20 21-24 25-29 30-39 40-49 50-59 60+ 2015 9M’2017

Most common customer characteristics:

71.8%

23.4%

4.8%

42.7%

50.3%

7.0%

Desktop

Mobile

Other

Trust Pilot and eKomi(1) score by countries

9.79.2 9.1 8.8

9.69.2 9.4

vivus.pl vivus.dk vivus.fi vivus.se zaplo.pl zaplo.dk vivus.es

Note: (1) Trust Pilot score in Poland, Denmark, Finland, Sweden; eKomi score in Spain (scores out of 10)

11

Responsible lending and regulatory compliance

• Putting customers first

• Focusing on good customer outcomes

• Delivering sustainable customer relationships

• Regulatory relationships are strategic to our business

• Appointment of Chief Compliance Officer

• Introducing a Customer Charter and Code of Conduct

• Ensuring best practice throughout the business

• What does responsible lending mean to 4finance?

• Marketing: clear, simple and transparent products and terms

• Pricing: typically position rates at lower end of market to ‘self select’ responsible borrowers who ‘shop around’

• Underwriting: credit check and underwriting for ALL loans, including returning, with 30% average new customer acceptance

• Customer care: local language, well staffed and responsive teams

• Extensions: no ballooning interest (interest paid for prior month) or ‘cycle of debt’

• Repayments: “push” payments from customer to 4finance, no automatic withdrawal from bank accounts

12

Our Areas of Focus

13

Driving near term

performance

Rapidly laying a

foundation for the

future

Executing a twin track strategy

14

Driving near term performance

15

Operational progress: renewed momentum

• Executive team transformation is nearing completion

• New regional leadership structure with our most experienced business

leaders providing more responsive oversight and driving best practices

across countries

• Restructured ExCo clarifies functional accountability and includes

representation from regional leaders plus TBI. Speeds up decision

making and improves collaboration across group

• Enhanced growth in our existing markets

• Best organic Quarter-on-Quarter loan issuance growth in two years

• Solid instalment loan issuance growth (up 35% QoQ)

• Solid Latin American growth (up 47% QoQ)

• Launch of instalment loans in Georgia following regulatory changes

• Promising start to near prime market tests

• Launched near prime offering in Lithuania, which is driving net loan book

growth in the region for the first time in many quarters

• Enhancing NPL management and completing preparation for IFRS 9

Gross receivables from recent IL launches(1)

83.0

0.0

20.0

40.0

60.0

80.0

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

Quarterly Issuance (Latin America)

7.6

0.0

2.0

4.0

6.0

8.0

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

€m

€m

Note: (1) Includes instalment loans in Poland, Denmark, Spain, Romania and the Czech Republic

16

Operational progress: growth and diversification

Interest income by country

287.3

327.2

€0m

€50m

€100m

€150m

€200m

€250m

€300m

€350m

9M 2016 9M 2017

Other

Argentina

Romania

Bulgaria

Czech Republic

Spain

Denmark

Georgia

Poland

Sweden

Finland

Lithuania

Latvia

Latvia8% Lithuania

2%

Finland5%

Sweden5%

Poland25%

Georgia4%

Denmark9%

Spain18%

Czech Republic5%

Bulgaria8%

Romania7%

Argentina2%

Other2%

9M17 interest income: €327m

Note: Interest income from TBI Bank and Friendly Finance is allocated within the corresponding country

+14%

17

42.0 42.1 42.2 43.345.8 45.2

41.1

5.2

10.18.6 10.5

11.3

3.2

2.33.2

3.4

3.9

50%49%

53%

57%

60% 60%

55%

0%

10%

20%

30%

40%

50%

60%

70%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3

4finance TBI Friendly Finance Quarterly cost/income ratio, %

Operational progress: increasing efficiencies

2016

• Continuing to execute cost optimisation project

• Overall cost to income ratio a focus: operating income increase

from growth in non-mature products plus cost efficiency

improvements

• Targeting annualised savings of up to 10% of costs, excluding

marketing and D&A

• Q3’2017 reduction in cost represents benefits of initial cost

saving initiatives

• Executing deeper integration of Friendly Finance and deploying a

multi-brand/multi-segment strategy that will use differentiated

underwriting rules and pricing to grow the addressable customer

base, while driving increased economies of scale

• Prioritizing and driving quick wins that will deliver near term top line

and bottom line returns

• Revamped the LOC product and will re-launch it in Latvia and

Finland

• Reduced cycle time of scorecards, allowing us to continuously

improve underwriting

2017

Note: Q1-3 figures reflect reported unaudited results and Q4 figures reflect balance to full year audited results

Total operating costs

€m

18

Operational progress: building a bridge to the future

• Accelerating development of new IT platform capable of powering all

of our products going forward, including SPL, IL, LOC, Credit Card

and Deposits, and allow faster rollout speeds at lower cost

• Smart blend of internal (differentiating) and external (best in class)

components

• Undertaking a pragmatic review of existing IT platform

• Near prime project for Sweden on track to launch in early 2018 with

powerful new risk based pricing functionality, risk based limits,

smart/adaptive on-boarding, behavioural driven anti-fraud capabilities

and a new mobile-friendly UX

• Partnership established for near-prime products in Poland for launch

in 2018

• Partnership established with major utility in Mexico for targeted rollout

to their customers in 2018 (scoring data and authenticated customers)

• Progress on diversifying our sources of loan book funding. Several

funding projects underway, both ‘in house’ (TBI Bank, deposits) and

external secured funding

• Strengthened governance, with enhanced role for Supervisory Board

and new committees (ALCO, remuneration)

Net receivables by product

Deposits from customers

9 10 11

197

237262 264 259

0.0

100.0

200.0

300.0

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

€m

211 221 230

10 1197

159

217

58

5347

44

308

494

556

0.0

150.0

300.0

450.0

600.0

2015 2016 9M 2017

Single Payment loans Line of Credit / Cards Instalment loans Point of Sale Bank (SME)

€m

1.58% 1.56% 1.54% 1.59% 1.48%TBI Bank deposit cost

8%

10%

39%

2%

41%

19

Rapidly laying a foundation for the future

20

Longer term opportunity:

Grow addressable market and customer lifetime value

• Additional products (e.g. leveraging TBI Bank for greater share of wallet)

• Additional demographics (e.g. moving up the credit curve)

• Additional geographies (e.g. entering tested markets such as APAC)

• Additional markets (e.g. adjacencies like small business, and the gig economy)

• Leveraging a third party ecosystem (e.g. Credit as a Service)

21

Future expansion: products and demographics

Mainstream Prime

Near Prime

Aspirational Near Prime

Sub Prime

NA

Reputational and regulatory

headwinds are making this

market somewhat more

complicated

Aspirational near prime

leverages our ability to

score harder to score

customers, but presents

a larger and more

sustainable market as

customers begin to climb

the credit curve

Cohort expansion Product diversification

4F

Managing day to day cash flow

Making aspirational purchases

Saving for the future

Mitigating day to day

risks

Lowering the cost of

living

Building financial health

22

Financial summary

23

Baltics12%

Scandinavia13%

Poland19%

Spain7%

Czech/Slovakia

4%

Georgia/Armenia

5%

LatAm0.9%

BG/RO (online)1%

Bulgaria (TBI)17%

Romania (TBI)13%

SME (TBI)8%

538

805

1,0621,157

841935

2013 2014 2015 2016 9M'2016 9M'2017

€m

178

241

308 316346

178

210494

556

2013 2014 2015 2016 9M'2017

Growing and diversified loan portfolioNet receivables(1)

Net receivables, 30/9/2017

Note: (1) Bank receivables in 9M17 include c. €1m from pilot transfer of Swedish instalment loans

• 11% year-on-year growth in online loan issuance to €935m in 9M17

• Overall net receivables totals €556m

• 13% year to date growth

• 92% consumer loans

• 62% online loans / 38% banking

Online loans issued

BankOnlineTBI Bank: 38%

(funded @ c.2%)Online: 62%

(funded @ c.12%)

+11%

€m

See appendix for definitions of key metrics and ratios

24

Overall gross NPL ratio and cost of risk

Asset quality and cost of risk

Asset quality trends by market

See appendix for definitions of key metrics and ratios

%

37.0%

33.1%

28.5%

20.7%

17.3%

14.8%

2015 2016 9M'2017

Gross NPL ratio Cost of risk

0%

5%

10%

15%

20%

25%

2013 2014 2015 2016 9M 2017

Spain

Bulgaria

Georgia

CzechRepublicDenmark

Poland

Latvia

Lithuania

Finland

Sweden

Non-performing online loans / 2 year online loan

issuance, for single payment loans

25

Profit before tax

29%35%

40%

25% 26%

38% (ex TBI)

40% (ex TBI)

24%

2013 2014 2015 2016 9M'2016 9M'2017

Financial highlights – profitable growth

5360

7481

63

49

2013 2014 2015 2016 9M'2016 9M'2017

Interest income

149

220

318

393

287327

2013 2014 2015 2016 9M'2016 9M'2017

71

88

119

137

102 107

2013 2014 2015 2016 9M'2016 9M'2017

€m

Adjusted EBITDA Equity to assets ratio, % (1)

4.6x

3.7x4.1x

3.6x3.9x

2.4x

2013 2014 2015 2016 9M'2016 9M'2017

Adjusted interest coverage ratio

37%

47%

56%

47%44%

47%

2013 2014 2015 2016 9M'2016 9M'2017

Equity/net receivables, %

Note: (1) Total assets figure for 2014 adjusted for the effect of bonds defeasance

2.0x

min.

20%

min.

35%

(ex TBI)

See appendix for definitions of key metrics and ratios

€m

€m

26

Conclusion

27

• The opportunity for 4finance is significant

• Clear mission and vision

• 4finance is uniquely positioned given existing scale and experience

• Twin track strategy: near term performance and foundation for the future

• Solid 9M17 results show operational progress

• Renewed momentum: return to loan issuance and portfolio growth

• Increasing efficiencies: executing cost optimisation project, cost/income ratio reduced

• Bridge to the future: developing near-prime product offering and associated new IT platform

• Partnership initiatives and funding projects to support future business growth

• Management and supervisory board team and structure in place to deliver

Conclusion

28

Thank you and Questions

29

Appendix

30

Income statement

€ m 9M 2017 (unaudited) 9M 2016 (unaudited) % change

Interest Income 327.2 287.3 +14%

Interest Expense (45.5) (26.2) +74%

Net Interest Income 281.6 261.1 +8%

Net F&C Income 7.7 2.1 n/m

Other operating income 6.8 4.9 +40%

Non-Interest Income 14.5 7.0 +108%

Operating Income 296.1 268.0 +10%

Total operating costs (173.1) (134.6) +29%

Non-recurring income/(expense) 5.8 1.3 n/m

Net FX (2.3) (5.8) (60)%

Pre-provision operating profit 126.5 128.9 (2)%

Net impairment losses (77.1) (66.3) +16%

Profit before tax 49.5 62.6 (21)%

Income tax expense (13.7) (13.4) +2%

Net profit after tax 35.8 49.2 (27)%

31

Balance sheet€ m 9M 2017 (unaudited) FY 2016 (audited)

Cash and cash equivalents 227.1 157.6

Placement with other banks 2.2 4.8

Gross receivables due from customers 720.7 665.1

Allowance for impairment (165.0) (171.2)

Net receivables due from customers 555.8 493.9

Net investments in finance leases 10.8 13.1

Loans to related parties 70.0 67.2

Property and equipment 10.6 12.3

Financial assets 8.6 10.6

Prepaid expenses 8.1 5.6

Tax assets 52.8 39.7

Intangible assets 44.0 39.8

Goodwill 43.4 43.4

Other assets 53.2 43.4

Total assets 1,086.5 931.4

Calculation for Presentation - other assets (not loans or cash) 692.2 597.8

Loans and borrowings 481.7 397.2

Deposits from customers 258.9 237.1

Deposits from banks 5.1 —

Corporate income tax payable 18.5 14.6

Other liabilities 63.6 47.5

Liabilities held for sale — 4.8

Total liabilities 827.9 701.2

Share capital 35.8 35.8

Retained earnings 263.0 233.9

Reserves (39.1) (40.2)

Total attributable equity 259.6 229.4

Non-controlling interests (1.0) 0.7

Total equity 258.6 230.1

Total shareholders' equity and liabilities 1,086.5 931.4

32

Key ratios – capitalisation and profitability

See appendix for definitions of key ratios

Key ratios9M 2017

(unaudited)

9M 2016

(unaudited)

FY 2016

(audited)

FY 2015

(audited)

Capitalisation

Net receivables (€m) 555.8 510.4 493.9 308.3

Total assets (€m) 1,086.5 846.5 931.4 438.2

Total equity (€m) 258.6 222.4 230.1 173.3

Equity / assets ratio 23.8% 26.0% 24.7% 39.5%

Equity / net receivables 46.5% 43.6% 46.6% 56.2%

Adjusted interest coverage 2.4x 3.9x 3.6x 4.1x

TBI Bank capital adequacy ratio 24.9% 24.8% 22.3% 19.5%

Profitability

Net interest margin:

- Online 66.2% 74.7% 74.7% 78.0%

- TBI Bank 26.3% n/m 23.6% —

- Overall group 54.2% n/m 65.0% 78.0%

Cost / income ratio 58.5% 50.2% 52.2% 45.9%

Profit before tax margin 15.1% 21.8% 20.6% 23.2%

Return on average equity 19.5% 33.1% 31.3% 44.8%

Return on average assets 4.7% 10.2% 9.2% 14.4%

33

Key ratios – asset quality

Key ratios9M 2017

(unaudited)

9M 2016

(unaudited)

FY 2016

(audited)

FY 2015

(audited)

Asset quality

Cost of risk

- Online 18.9% 19.3% 19.6% 20.7%

- TBI Bank 5.3% n/m 3.1% —

- Overall group 14.8% n/m 17.3% 20.7%

Gross NPL ratio

- Online 36.9% 43.8% 42.0% 37.0%

- TBI Bank 10.3% 10.4% 10.9% —

- Overall group 28.5% 34.5% 33.1% 37.0%

Net impairment / interest income 23.6% 23.1% 22.8% 24.2%

Online NPLs to loan issuance ratio 7.8% 9.6% 9.3% 9.0%

See appendix for definitions of key ratios

Note: (1) The TBI Bank cost of risk figure for FY 2016 refers to Q4 2016 annualised

(1)

34

Summary of nine month 2017 results

• 9M17 interest income up 14% and Adjusted EBITDA up 5% year on year

• Record €114m quarterly interest income, up 4% from Q2

• Adjusted EBITDA of €107m, up 5%, maintaining interest cover from Q2

• Pre-provision operating profit of €127m, down 2% on last year

• Profit before tax of €49m, down 21% on last year

• Interest income highlights by market and product

• Strong growth in Poland, Spain & Denmark vs impact of Georgia and Lithuania regulatory

changes (reduction of €29m in 9M17 vs 9M16)

• Latin American growth starting to show in overall results: up 18% QoQ and 9M17 total

over 3x that of 9M16

• Instalment loan interest income up 10% QoQ (growth and visibility)

• TBI Bank strong performance driven by retail lending growth

• Cost efficiency initiatives in evidence

• Quarterly reduction in absolute costs and cost/income ratio

• Strategic approach to costs with longer term view / investment where appropriate

• Continued improvement in NPL ratios, increase in Q3 net impairments

• Gross NPL ratio and NPL/sales ratio improvement

• Net impairment/interest income at 24% compared to 23% for 9M16

• Net impairment increase in Q3 (higher gross impairments, lower debt sales)

• Enhancements to financial reporting and disclosure

62.6

49.5

9M'2016 9M'2017

101.8107.1

9M'2016 9M'2017

287.3

327.2

9M2016 9M'2017

Interest Income€m

+14%

Profit before tax€m

Adjusted EBITDA€m

-21%

+5%

See appendix for definitions of key metrics and ratios

128.9 126.5

9M'2016 9M'2017

Pre-provisionoperating profit

€m-2%

35

Analysis of net impairments and cost of risk

-2.8-6.2

-3.2

-2.2

-2.8

-2.5

28.832.3

35.9

23.7 23.3

30.1

-10.0

0.0

10.0

20.0

30.0

40.0

Q1 2017 Q2 2017 Q3 2017

Grossimpairments

Recoveries fromwritten off loans

Overprovisioning ondebt sales (netgain/loss)

Net impairmentlosses

• Year on year increase in impairments broadly in line with

business growth, plus effect of TBI Bank

• Net impairment / interest income 24% (9M17) vs 23% (9M16)

• Online cost of risk 18.9% (9M17) vs 19.3% (9M16)

• Overall cost of risk 14.8% (9M17, including TBI Bank)

• Net impairment increase to €30.1m in Q3 vs €23.3m in Q2 due

to a combination of factors

• Steady increase in gross impairments, including growing and

maturing instalment loan portfolio

• Lower contribution from debt sale gains in Q3 vs Q2

• Focus on continuous improvement in credit underwriting

• Integration of additional data sources

• Faster iterations of scorecards with regular recalibration

• Preparation well underway for IFRS 9 implementation

• Reviewing current two year collection and write-off period

• Establishing more forward flow NPL debt sale agreements

• Preliminary estimate of c.7-10% year-end reduction in

overall net receivables

Net impairment losses by quarter

€m

14.1% 13.6% 17.1% Cost of risk

See appendix for definitions of key metrics and ratios

36

Gross

amount % of gross

Impairment

allowance

Net

amount

Impairment /

gross

Gross

amount % of gross

Impairment

allowance

Net

amount

Impairment /

gross

Online receivables

DPD 0 251.6 51.0% 7.3 244.3 2.9% 216.7 45.7% 6.3 210.4 2.9%

DPD 1-30 25.6 5.2% 6.8 18.8 26.5% 25.6 5.4% 6.2 19.3 24.4%

DPD 31-60 18.5 3.7% 8.0 10.5 43.3% 17.8 3.7% 7.8 10.0 43.8%

DPD 61-90 15.5 3.1% 7.4 8.0 48.0% 14.6 3.1% 7.3 7.3 50.1%

Performing 311.1 63.1% 29.5 281.6 9.5% 274.7 58.0% 27.7 247.0 10.1%

DPD 91-360 102.8 20.8% 59.1 43.7 57.5% 102.8 21.7% 57.0 45.8 55.5%

DPD 361-730 79.5 16.1% 58.8 20.7 73.9% 96.5 20.4% 72.9 23.6 75.6%

Non-performing 182.3 36.9% 117.9 64.4 64.7% 199.3 42.0% 129.9 69.4 65.2%

Online total 493.4 100.0% 147.4 346.0 29.9% 474.0 100.0% 157.6 316.4 33.3%

TBI Bank receivables

Performing 204.0 89.7% 3.9 200.1 1.9% 170.3 89.1% 1.4 168.9 0.8%

Non-performing 23.3 10.3% 13.7 9.6 58.8% 20.8 10.9% 12.2 8.6 58.5%

TBI Bank total 227.3 100.0% 17.6 209.7 7.7% 191.1 100.0% 13.6 177.5 7.1%

Overall group receivables

Performing 515.2 71.5% 33.4 481.8 6.5% 445.0 66.9% 29.1 415.9 6.5%

Non-performing 205.6 28.5% 131.6 74.0 64.0% 220.1 33.1% 142.1 78.0 64.6%

Overall total 720.7 100.0% 165.0 555.8 22.9% 665.1 100.0% 171.2 493.9 25.7%

(in millions of €, except percentages) (in millions of €, except percentages)

30 September 2017 31 December 2016

Asset quality and provisioning

• Improvement in asset quality visible during 9M 2017

• Online gross NPL ratio declined by 5.1% from 42.0% as of Dec 2016 to 36.9% as of Sep 2017 (positive impact from NPL debt sales)

• Overall gross NPL ratio now below 30%

Performing receivables 0-90 DPD; non-performing receivables 91+ DPD

37

€2,324m€2,142m

€182m

Loans issued 07/2015-06/2017(730 days)

NPLs as of 30/09/2017 Repaid and performing loans30/09/2017

NPL / sales ratio improving, but less relevant going forward

Conservative online loan provision coverageNon-performing loans (NPLs) as % of total loans issued(1)

7.8% of total

loans issued

Improving NPLs to issued loans ratio(1)

9.2% 8.8% 9.0% 9.3%

7.8%

2013 2014 2015 2016 9M'2017

• Loans that are overdue more than 90 days are considered as non-performing

(NPLs)

• As of 30/09/2017, online NPLs represented 7.8% of total online issued loans

over the last 730 days (ie the period most NPLs remain on balance sheet)

• Actual loss experienced on NPLs is approximately 50%-60% (55% as of

30/09/2017). Provisions for default are typically 5-10 p.p. higher

• NPL/issued loans metric becomes less relevant as proportion of longer term

instalment loans increases and debt sales volumes increase

Note: (1) Total issued loans include the amount of online loans issued, excluding TBI Bank, during 730 days ending 90 days prior to the end of period. See appendix for further definitions

55%

65%

81%

10%

Loss given default Provisionfor default portfolio

Provision coveragebuffer

Overall provisioncoverage

38

Online: asset quality trends for single payment loans

• Non-performing loans to loan issuance ratio

tends to improve over time in each market

• More data: better scorecards

• More experience: better debt collection

• More returning customers

• Different characteristics for each market

• Portfolio mix shift drives overall Group

NPL/sales ratio (eg growth in Spain)

• Impact of debt sales in certain markets (eg

Poland, Spain, Sweden, Finland)

• Higher NPL ratio countries also have higher

interest rates

• Impairment / interest income ratio stable0%

5%

10%

15%

20%

25%

2013 2014 2015 2016 9M 2017

Spain

Bulgaria

Georgia

Czech Republic

Denmark

Poland

Latvia

Lithuania

Finland

Sweden

Non-performing online loans / 2 year online loan issuance

39

Banking: TBI portfolio overview

97 105132

165

5565

62

60

153169

194

225

0

40

80

120

160

200

240

2014 2015 2016 9M'2017

SME (includingfinancial leases)

Retail

Net loan portfolio(1), m EUR

Consumer gross portfolio by type, 30/9/2017

Note (1) Gross loan portfolio less provisions for bad debts, based on management reporting, book value

58%

36%

5% 1%Cash instalment loans (€873 av. size, 124k active, 52% av. Rate)

POS (€282 av. size, 217k active, 38% av. Rate)

Cards (€298 av. size, 29k active, 27% av. Rate)

Other

• Clear customer segments

• Consumer loans in Bulgaria and Romania, including cash instalment loans (offline and online), point of sale loans and credit cards. 370k active loans with average sizes of c.€900 for cash instalment loans and c.€300 for POS/cards

• SME loans, usually collateralised (785 active loans with average sizes of €63k)

• SME finance leases (405 active loans with average sizes of €32k)

• Steady growth in loan portfolio

• Consumer loan growth of €33m in net portfolio during 9M 2017, particularly cash instalment loans

• SME portfolio deliberately kept at stable overall total, with some sector rotation

• Increasing consumer portfolio, with higher yields, results in higher blended asset yield

• Stable asset quality and robust capital ratios

• 11.3% gross NPL ratio (vs 10.7% at FY16) with low cost of risk (5% for 9M 2017)

• Capital Adequacy Ratio of 24.9% (vs 22.3% at FY16) remains robust with substantial headroom

TBI portfolio overview

+15%+16%

40

Glossary/Definitions• Adjusted EBITDA – a non-IFRS measure that represents EBITDA (profit for the period plus tax, plus interest expense, plus depreciation and amortization) as adjusted by income/loss from discontinued operations, non-cash gains and losses

attributable to movement in the mark-to-market valuation of hedging obligations under IFRS, goodwill write-offs and certain other one-off or non-cash items. Adjusted EBITDA, as presented here, may not be comparable to similarly-titled measures that are reported by other companies due to differences in the way these measures are calculated. Further details of covenant adjustments can be found in the relevant bond prospectuses, available on our website

• Adjusted interest coverage – Adjusted EBITDA / interest expense

• Cost of risk – Annualised net impairment loss / average gross receivables (total gross receivables as of the start and end of each period divided by two)

• Cost / income ratio – Operating costs / operating income

• Equity / assets ratio – Total equity / total assets

• Equity / net receivables – Total equity / net customer receivables (including accrued interest)

• Gross NPL ratio – Non-performing receivables (including accrued interest) with a delay of over 90 days / gross receivables (including accrued interest)

• Gross receivables – Total amount receivable from customers, including principal and accrued interest, after deduction of deferred income

• Interest income – Interest and similar income generated from our customer loan portfolio

• Loss given default – Loss on non-performing receivables (i.e. 1 - recovery rate) based on recoveries on 21/36 month window for single payment/instalment loans, reduced by costs of collection, discounted at weighted average cost of capital

• Net impairment to interest income ratio – Net impairment losses on loans and receivables / interest income

• Net interest margin – Annualised net interest income / average gross receivables (total gross receivables as of the start and end of each period divided by two)

• Net receivables – Gross receivables (including accrued interest) less impairment provisions

• Non-performing receivables (NPLs) – Receivables that are over 90 days past due

• Non-performing receivables to loan issuance ratio – Non-performing online receivables / value of online loans issued. The value of loans issued represents online loans issued for the two-year period before commencement of the 90 day past-due period, eg for 30 September 2017: 1 July 2015 to 30 June 2017

• Overall provision coverage – Allowance account for provisions / non-performing receivables

• Profit before tax margin – Profit before tax / interest income

• Return on average assets – Annualised profit from continuing operations / average assets (total assets as of the start and end of each period divided by two)

• Return on average equity – Annualised profit from continuing operations / average equity (total equity as of the start and end of each period divided by two)

• TBI Bank Capital adequacy ratio – (Tier One Capital + Tier Two Capital) / Risk weighted assets (calculated according to the prevailing regulations of the Bulgarian National Bank)

41

Contacts

Investor Relationsinvestorrelations@4finance.com

James EtheringtonHead of Investor RelationsPhone: +44 7766 697 950E-mail: james.etherington@4finance.com

Paul GoldfinchChief Financial OfficerPhone: +371 2572 6422E-mail: paul.goldfinch@4finance.com

Headquarters17a-8 Lielirbes street, Riga, LV-1046, Latvia