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Data Science. Credit Scoring. Digital Finance
INNOVATION LEADER
BIG INNOVATION AWARD
2017
BEST LENDING PLATFORM
BENZINGA GLOBALFINTECH AWARDS
2017
TOP-2 FASTEST GROWING FINTECH
COMPANY IN EUROPE
FINANCIAL TIMES
April 2018
TOP-50 FASTEST GROWING
COMPANY IN EUROPE
INC. 5000 EUROPE
March 2018
BEST ALTERNATIVE FINANCE COMPANY
EUROPEAN FINTECH PUBLIC AWARDS
2016
EUROPE TOP 100: WINNER «FINANCE»
RED HERRING
2016
ID FINANCE MISSIONI NTERNATIONAL CONSUMER FI NANCE PROVIDER
1DATA-DRIVEN
Fully in-house IT & risk management system
2
3
4
Build an international data-driven financial
institution to provide convenient financial
servicesPRODUCT
Tailored to meet consumer needs driving high client retention
RISK CONTROLCompliance with all regulatory requirements across the group
INTERNATIONAL EXPERTISEScalable business model
3
LEADING INTERNATIONAL FINTECH COMPANY
ID Finance Overview
9 countries
c. 5m clients
$100+ m net income in 2021
Growth 221% in net loan portfolio (Q1 2014 vs. Q1 2018)
STRATEGY ScalabilityNew businesses are launched less than in 3 months
Client retentionLoyal recurring customers drive bottom line results
4
92197
421
717
1 137
1 624
2 199
62 122232
366558
803
1 112
2016 2017 2018F 2019F 2020F 2021F 2022F
Issuance ($m) Revenue ($m)
Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18
LEADING INTERNATIONAL FINTECH COMPANY
ID Finance Overview
Innovative Digital Finance (ID Finance) Global expansion and unique registered clients
Financial highlights
5.3m
Mission Build an international data-driven financial
institution to provide financial services to the underbanked
Key facts
Founded: 2012 Employees: 600 Geographic presence: 9 countries Products: consumer finance provider
Investment highlights
Scalable model: launch in new geography within 3 months
Exceptional traction: net loan portfolio grew at 221% CAGR Q1 2014 – Q1 2018
High client loyalty: 90% of new clients generate repeat business.
High Return on Marketing Investment:$4.4 cash net income from $1 invested into CAC
High ROAE: 43% in 2017FY
High profitability: $100+m of net profit expected in 2021+
Technology and data driven: Proprietary scoring model and in-house IT platform
$6.5m
$18m
$39m
$66m
$107m
$152m
Profit after tax
Current presence Strategic focus
$5.0m
RU 2012
KZ 2014
GE 2014
ES 2015 (HQ)
PL 2015
BR 2016
MX 2017
BL 2012 (R&D hub)
CO 2018
5
RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY
Our History
$0.2m
Loan issuance dynamics
$1.7m $14m $36m $92m
Professional and motivated global and local teams
Centralised IT and risk-infrastructure
Monitoring of key indicators in real time
2012 2013 2014 2015 2016
Launch and risk optimisation CIS expansion European expansion LATAM expansion
Russia
Scoring and risk-management
Round A: $3.5m
Spain
Poland
Round B: $6.0m
Georgia
Kazakhstan
Installment loans
Brazil, Mexico
New products:
AmmoPay and Solva
Major factors for effective scaling
$197m
2017
6
Low risk Medium risk High risk
OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS
Product Portfolio
Banks’ maximum margin
Low
mar
gin
Hig
h m
argi
n
Minimum margin given borrower risk
Banks’ target lending market
Target lending market
7
ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT
Highly Efficient IT & Risk-management System
Client acquisition
Scoring and fraud-analysis
Client management
Pre-collectionsCollections
Legal support
Fraud prevention
Data points are collected and analyzed in real time
10,000+Applications are processed automatically
98%Of the debt recovery achieved in-house through efficient client management system
70%Of clients become loyal customers through effective CRM system
90%
CLIENT LIFE CYCLE
Risk management present at every step of client life cycle ID Finance taps into global and local pools of information
8
GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS
Strong Management Team
Co-founder, Chief Executive Officer (CEO)15+ 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 Cambridge University with a degree of Master in Economics
Co-founder, Chief Operational Officer (COO)10+ years of experience in banking and finance
Previous experience: Deutsche Bank, London
Holds Chartered Financial Analyst degree
Graduated from Imperial College with a degree of Master in Finance
Chief Financial Officer (CFO)
Boris Batin, PhD Alexander Dunaev, CFA Javier Lopez
19+ years of experience in financial services and finance
Previous experience in General Electric and Standard
Chartered BankGraduated from ESADE University (Barcelona, Spain) with a
degree of Master in Business Administration
Chief Risk Officer (CRO)
Ekaterina Kazak
10 years of work experience in risk management
Previously worked as Head of Russia & CIS Experian Analytics
Graduated from Moscow State University of Economics, Statistics and Informatics
Chief Marketing Officer (CMO)
Alessandro Ceschel
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,
Logismarket, Socialcar, worked in MNC (Nestlé) and in early stage startups
Graduated from Padova University with a Master in Industrial Engineering and Business Administration
Chief Technical Officer (CTO)
Pavel Shareyko
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
9
2017 FY 2016 FY Conversion ratesfor 2017 Historical data
Website visitors
26m 21m
Conversion to applications
Conversion rate to applications increased by 1pp
(Y-o-Y)
Applications2.5m 1.8m
Approval rateApproval rate has increased
by 7pp (Y-o-Y)
Number of loans issued
800k 460k
Retention rateConversion rate from visits to
loans issued has reached 3.1% (+1pp Y-o-Y)
Amount of loans issued
$197m $92m
Loan marketing cost*
Marketing cost has decreased by 1.8pp (Y-o-Y)
HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY
Client Acquisition Funnel
* Marketing costs divided by amount issued
33%
90%
9%
5%
0,0
2,0
4,0
6,0
8,0
10,0
Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Website visitors, #m
0,0
0,2
0,4
0,6
0,8
1,0
Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Applications, #m
0
100
200
300
Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Number of loans issued, #k
0
20
40
60
80
Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Amount of loans issued, $m
10
3%6%
24%
18%
49%
2%9%
13%
11%
22%
43%
13%
10%
77%
1,0 3,3 5,811,8
22,8
39,0
57,4
77,3
96,1
0
20
40
60
80
100
120
1H 2014 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 Q1 2018
SIGNIFICANT PORTFOLIO DIVERSIFICATION ACHIEVED IN LINE WITH GROUP STRATEGY
Portfolio Growth
$3.3m
Russia Kazakhstan Georgia Spain Poland Brazil Mexico
December 2014 December 2016 March 2018
Value of loans outstanding (net of reserves), by country ($m)
Value of loans outstanding (net of reserves), by country ($m)
$39m $96m
11
ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH
Portfolio Quality
$16.5m
$193m $176m
* NPL = FPR 90d+
43,3%
23,5%
14,6%12,1% 9,7% 10,1% 11,2% 10,6% 10,1% 8,8% 7,2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Q1 2018
$417m $386m
$30m
0
50
100
150
200
250
300
350
400
450
Loans issued since launch NPL as of Mar-18 Repaid and performing loans Mar-18
Historical NPL* rates
Historical group level of NPL*
Significant portfolio quality improvement
12
STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS
Geographical Expansion
Launch Population* (m) Internet users* (m) Mobile users* (m)
Russia 2012 144 103 103
Kazakhstan 2014 18 10 15
Georgia 2014 4 2 3
Spain 2015 46 37 40
Poland 2015 38 27 27
Brazil 2016 208 123 130
Mexico 2017 127 73 86
Colombia 2018 48 27 33
USA 2019 321 239 258
Peru 2019 31 13 19
Total 985 653 714Current presence Strategic focus
* 2015 WorldBank, UNdata, eMarketer; 2016 Statista, Budde
Country of presence ID Finance
3%23%
33%
41% Share of European
and LatAm59%
1%20%79%
100%
Share of European
and LatAm0%
Share of European
and LatAm21%
E 2021 FY2017 FY2013 FY
Geographic diversification 2013-2021. Loans issued
Russia and CIS AmericasEurope Other region (Asia/India…)
13
FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS
Product Diversification
Loan volume
Market size
81%19%
Share of long-term
loans 81%
43%57%100%
Share of long-term loans 0%
Share of long-term
loans 43%
Focus on prime users
Client profile
Larger market capacity
Larger volume Lower risk
NPL level
Strategy focus
Loan term
Longer term
Competitive advantage
Lower rates
Single payment loans Instalment loans
%
E 2021 FY2017 FY2013 FY
Product diversification 2013-2021. Loans issued
14
50%
34%
7%9%
RUB50%
USD27%
EUR18%
GEL5%
702
575
700
961
516 507
421
568
0 0
515
120
200
400
600
800
1 000
1 200
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
FUNDING LATAM AND LONGER-TERM PRODUCT EXPANSION
Funding Strategy
Funding highlights Debt portfolio (Q1 2018). Currency breakdown
Debt repayment schedule ($m) Debt portfolio (Q1 2018). Source breakdownDebt portfolio is well-balanced in terms of
maturity. The latest scheduled payment is in Q1 2021
Debt portfolio is well-diversified in terms of
currency
$95.4m
$95.4m
Credit funds
Mintos
Individual investors
Bonds
FX risk is mitigated by introducing local funding: RU, KZ, GE, ES are self-funded; MXN, BRL, PLN funding will be launched in 2018
Liquidity risk is mitigated by introducing different sources of funding: Mintos will be introduced in Poland; Bank funding will be introduced in Brazil after obtaining
license Key drivers of funding cost decrease:
Scale of operations; Credit ratings IFRS audited statements
1515
Alexander DunaevCo-founder, COO @ ID Finance
Thank you!
Boris BatinCo-founder, CEO @ ID Finance
