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Inbank AS Investor Presentation Q4 2019

1


Inbank at glance

EUR 338m Loan Portfolio

550 000+ Active Contracts

24% Return On Equity 2019

7 Countrie s

2000+ Active Partners

46% Sales Growth Last 12M 2


Group history and structure First hire purchase contract

Cobranded credit cards with Coop retail chain

2011

Group Structure

Joint venture in consumer loans with Krediidipan k 2014

Latvian consumer credit market entry

Banking licence and rebranding 2015

Auto24.ee partnershi p

Co-operation with Raisin

2016

Acquisition of Coop Pank and sale of affiliates to Coop Pank

Polish branch

Mokilizingas acquisition

2017

2018

Lithuanian branch 2019

Shareholder Structure

Financial Investors 64%

Founders & Employees 36%

Owner

Shares

%

Cofi Investeeringud OĂœ

24 635

27,3%

Pershing Hall Holding Limited

23 858

26,4%

Other (61 shareholders)

41 851

46,3%

3


Activity highlights Sales Finance q Integrated financing options for e-commerce q Co-operation with PayU in Poland

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

44% 27%

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

Deposits q Co-operation with deposit marketplace Raisin q Term deposits offered in 6 EU countries 378

30%

PL EE 96 Raisin

239

12 12 12 2017 2018 2019

4


Baltics and Poland are our home markets 440 000 active customers and 550 000 active contracts Number of employee s

Number of offices

Group

209

Estonia

Active Distributio n partners

Net loan portfolio EURm

7

2 307

338

98

1

213

139

Latvia

24

1

149

29

Lithuania

62

3

1 145

131

Poland

25

2

800

40

31.12.2019

5


Efficient and automated business model Benefits for Partners

Benefits for Partners and Customers

Benefits for Customers

q Partner-centric and sector-focused q Quick and automated decision-making – q Flexible product offering with various approach credit decision in less than 7 seconds options for increasing customer q Financing solution fully integrated into q 90% of contracts completed purchasing power partners’ business process through automatically online or at point-of-sale q All-digital experience convenient online flexible API identification and contract signing q Repeat sales and greater conversion rates q Complementary fee income Digital signature

Statistical model

Online

Partner

Mobile

Credit bureaus

Inbank

Contract

Income data Personal data

Online identification

POS

6


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


Key figures Loan Portfolio (EURm)

Deposit Portfolio (EURm)

338 226

35

65

93 30

Return on Equity (%)

65

9.2

95

2015 2016 2017 2018 2019

12.3 31.7 23.9

0.9 2015 2016 2017 2018 2019

Impairment Losses to Loan Portfolio (%)Cost Income Ratio (%)

8.4

14.5

2015 2016 2017 2018 2019

10.0

2.6

6.4 9.5

9.3

11.7

2015 2016 2017 2018 2019

13.7 11.1

Net Profit (EURm)

7.5

4.0

Net Interest Margin (%)

44.3

32.0

21.4

240

2015 2016 2017 2018 2019

26.4

Net Income (EURm)

378

4.0

63.2 45.7

4.5

1.7

2015 2016 2017 2018 2019

57.8

49.9

49.9

2.1

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019 8


Quarterly key figures Loan Portfolio (EURm)

226

246

276

310

Deposit Portfolio (EURm)

338 240

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 Return on Equity (%)

30.0 22.7

276

378

8.3

9.0

3.4

3.1

6.8

8.7

9.4

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

2.7 8.2

2.3

2.2

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

Impairment Losses to Loan Portfolio (%) Cost Income Ratio (%)

7.9

21.8

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

Net Profit (EURm)

2.0

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

9.5

8.0 6.7

273

Net Interest Margin (%)

31.7 21.9

375

Net Income (EURm)

2.1

53.3

2.4

48.6

51.0

48.7

53.0

1.5

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

-0.7 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019

Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 9


GROUP MANAGEMENT

Organisation

Priit Põldoja Chairman, Founder

Jan Andresoo

Piret Paulus

Jaanus Kõusaar

Marko Varik

Aet Toose

Erkki Saarniit

Risk

Technology

Product Development

CEO, Founder

Business Development

Finance

q209 employees q7 offices in 4 countries qGroup management focuses on strategy, innovation and growth into new markets as well as meeting bank’s capital return and risk appetite targets qFinance, risk, product development and technology teams are centralised qSales & distribution and credit underwriting is handled by local teams

Liina Sadrak

Business Processes

COUNTRY MANAGEMENT Margus Kastein Inbank Estonia

Girts Ledins Inbank Latvia

Maciej Pieczkowski Inbank Poland

Benas Pavlauskas Inbank Lithuania

10


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

11


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

Inbank.pl

inbank.lt

mokilizingas.lt

Profile for Inbank

Inbank AS Company presentation Q4 2019  

Inbank AS Company presentation Q4 2019  

Profile for inbank