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Inbank AS Company Presentation Q2 2019 1


Company presentation

Inbank at glance

EUR 276m Loan Portfolio

7 Countries

480 000 Active Contracts

32% Return On Equity

1500+ Active Partners

49% Sales Growth

2018

Last 6M

2 Data as of Q2 2019


Company presentation

Group history and structure First hire purchase contract

2011 Group Structure

Co-branded credit cards with Coop retail chain

Joint venture in consumer loans with Krediidipank 2014

Latvian consumer credit market entry

Banking licence and rebranding

Auto24.ee partnership

2015

Co-operation with Raisin

2016

Acquisition of Coop Pank and sale of affiliates to Coop Pank

Polish branch

2017

Mokilizingas acquisition 2018

Shareholder Structure

Financial Investors 66%

Founders & Employees 34%

Owner

Shares

%

Cofi Investeeringud OĂœ

24 635

28,2%

Pershing Hall Holding Limited

23 858

27,3%

Other (55 shareholders)

38 901

44,5%

3


Company presentation

Activity highlights Sales Finance  Integrated financing options for e-commerce  Co-operation with PayU in Poland and Bite in Lithuania

Personal Loans  Flexible small loans to consumers  Tailored conditions depending on the loan purpose

42% 30%

Deposits  Co-operation with deposit marketplace Raisin  Term deposits offered in 5 EU countries

Car Loans  Car Loan and Car Leasing  Strategic partnership with auto24.ee in Estonia

28%

PL EE Raisin

239

273

96 12 06 12 2017 2018 2019

4


Company presentation

Baltics and Poland are our home markets 350 000 active customers and 480 000 active contracts Active contracts (‘000)

Active Distribution partners

Net loan portfolio EURm

480

1 612

276

1

71

206

120

25

1

132

170

49

Lithuania

64

3

254

1 131

86

Poland

19

2

23

105

21

Number of employees

Number of offices

Group

195

7

Estonia

87

Latvia

30 June 2019

5


Company presentation

Efficient and automated business model Benefits for Partners

Benefits for Partners and Customers

 Partner-centric and sector-focused approach  Quick and automated decision-making –  Financing solution fully integrated into credit decision in less than 7 seconds partners’ business process through flexible API  90% of contracts completed automatically  Repeat sales and greater conversion rates online or at point-of-sale  Complementary fee income

Benefits for Customers  Flexible product offering with various options for increasing customer purchasing power  All-digital experience convenient online identification and contract signing

Digital signature

Statistical model

Online

Partner

Mobile POS

Credit bureaus

Inbank

Contract

Income data Personal data

Online identification

6


Company presentation

Strategy & core competencies Partner Management

We help our partners sell more by simplifying purchases and making financing more accessible to our customers

Customer Behavior

Distribution and Marketing

Sales Orientation

Product Development, Process Development, Technology

Yielding Loan Portfolio, ROE

Managing Affordability Simplifying Distribution Enabling Credit

Profitable Business Model Risk Management Funding and Capital Management 7


Company presentation

Key figures Loan Portfolio (EURm)

226

Deposit Portfolio (EURm)

240

Net Income (EURm)

21,4

Net Profit (EURm)

9,3 7,5

14 2014

35

65

93 0

2015

2016

2017

2018

Return on Equity (%)

2014 2015

95 2,4

2016 2017

2018

Net Interest Margin (%) 44,1

43,1

30

65

9,2

2015

2015

2016

2017

12,3

13,7 11,1

2017

2018

2014

0,9

2014

2015

2015

2016

2017

2018

2014

2016

2017

2018

Cost Income Ratio (%) 63,2

4,5

4,0

9,5

2,6

1,3

6,4

2,4

2016

2018

Impairment Losses to Loan Portfolio (%)

14,5

2014

4,0

16,7 31,9

26,6

2014

11,7

57,8 45,7

41,1

49,9

1,7

2015

2016

2017

2018

2014

2015

2016

2017

2018


Company presentation

Quarterly key figures Loan Portfolio (EURm)

178

200

226

246

276

Deposit Portfolio (EURm) 276 240 159

Net Income (EURm) 8,0

273 6,0

187

6,7

Net Profit (EURm) 3,1

6,8 2,0

4,2

2,3

1,5 0,9

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Return on Equity (%)

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Net Interest Margin (%)

34,9

9,3 21,9

18,0

Q2 2018

10,0

9,5

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Impairment Losses to Loan Portfolio (%) 8,7

9,4

2,9

2,6

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

48,6

50,9

Q1 2019

Q2 2019

Cost Income Ratio (%)

2,7

55,8

Q2 2019

Q2 2018

2,1

48,3

53,3

23,1

12,4

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q2 2018

Q3 2018

-0,7 Q4 2018

Q1 2019

Q3 2018

Q4 2018


Company presentation

Poland is Driving New Sales 30

CAGR

+61% 26.0

25

23.8

mEUR

1.1

15.9 15

0.6

16.4

8.1

1.3

8.3

1.2

17.2

1.8

8.8 8.2

1.6

5

0

1.8

1.1

0.5

10.2

10

19.7

19.5

20

5.9

6.3

6.5

6.3

06 2018

07 2018

08 2018

09 2018

1.7

3.5

20.6 18.9

2.5

2.1

8.4

11.3

1.7 1.6

7.4

6.7

10 2018

11 2018

18.0

17.6

2.4

2.3

7.9

1.4

22.9

3.9

2.9

25.5 5.6

Poland

+877%

9.5

Lithuania

+17%

2.2

Latvia

+64%

8.3

Estonia

+40%

10.1 9.7

9.8

8.1

2.6

2.4

2.2

8.2

8.0

03 2019

04 2019

1.7

5.3

6.3

5.5

12 2018

01 2019

02 2019

9.4

05 2019

06 2019

10


Company presentation

Organisation

GROUP MANAGEMENT Priit Põldoja

Jan Andresoo

Piret Paulus

Marko Varik

Chairman, Founder

CEO, Founder

Business Development

Finance

Liina Sadrak

Ivar Kallast

Aet Toose

Risk

Technology

195 employees 7 offices in 4 countries Group management focuses on strategy, innovation and growth into new markets as well as meeting bank’s capital return and risk appetite targets Finance, risk, product development and technology teams are centralised Sales & distribution and credit underwriting is handled by local teams

Business Processes

Erkki Saarniit Product Development

COUNTRY MANAGEMENT Margus Kastein

Girts Ledins

Maciej Pieczkowski

Benas Pavlauskas

Inbank Estonia

Inbank Latvia

Inbank Poland

Inbank Lithuania

11


Company presentation

Key success factors Profitable and scalable consumer finance business model  Excellent proprietary technology and innovative digital solutions  Focused strategy and experienced, professional team Proven track record with strong market position in the Baltics  Second largest consumer finance provider in Estonia with 12% market share  Potential to grow business in Poland and expand the business model into more countries EU banking licence for access to sustainable funding  Strong international investor base to support the growth  Tier 2 bonds listed on Nasdaq Baltic exchange, AT1 capital issued  Shareholding in payment service provider Maksekeskus gives potential access to payments market

28 May 2019

12


Inbank AS Niine 11, 10414 Tallinn info@inbank.ee +372 640 8080 inbank.ee

Profile for Inbank

Inbank AS Company presentation Q2 2019  

Inbank AS Company presentation Q2 2019  

Profile for inbank