Ithuba FinMill

Ithuba FinMillEMPOWERING FINTECH INNOVATION

Ithuba FinMill is a Vienna based FinTech company builder established by a team of entrepreneurs and

passionate finance professionals with the goal to transform ideas into successful businesses.

Ithuba FinMill

Austria’s First FinTech Company Builder

We seek close working relationships with our start-ups by providing co-working space, capital, access to

financial institutions at board room level, regulatory guidance, technological implementation and top talent.

WHY WE ARE WHO WE ARE…EMPOWERING FINTECH INNOVATION

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www.finmill.at

Ithuba Capital AG

Ithuba Capital is a technology driven investment and advisory firm focusing on the

financial industry. The team’s superior capital markets knowledge coupled with strong

quantitative analytical skills, a state-of-the-art systems infrastructure and broad

international network gives Ithuba Capital an edge in servicing financial institutions.

Ithuba Capital is licensed and supervised by the Austrian Financial Market Authority

(FMA).

Ithuba FinMill

Ithuba FinMill is the company builder and venture investment vehicle of Ithuba Capital AG.

Our focus is to co-develop B2B FinTech solution for the financial services industry. FinMill

seeks to take minority stakes in innovative FinTech start-ups and closely works with

entrepreneurs by providing capital markets expertise, company building experience and

access to its network of financial institutions. Together with Q Capital Ventures we provide

capital and support for future financing rounds.

Aquantec (Advanced Quantitative Technology)

In order to support financial institutions in effectively managing portfolios and

addressing evolving challenges in the aftermath of the financial crisis, we have co-

founded Aquantec and successfully developed Aquantec Ocean, a cross asset and cross

domain portfolio and risk management software.

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RELEVANCE OF CAPITAL MARKET (CM) FINTECHS FOR FINANCIAL INSTITUTIONS (FIs)

CM INNOVATION IS NO LONGER OPTIONALEMPOWERING FINTECH INNOVATION

2006 2007 2008 2010 2011 2012 2013 20142009 2015

19%

4%

(-)13%

17%16%

10%9% 9%

8%6%

IBs ROE well below typical Cost of Equity

In an environment of growth where new incumbents threaten to take away

revenues and market shares from traditional players, the only path back to

acceptable ROE is to address structural costs.

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2011 2012 2013 2014

Ø Investment baking cost to income

2015

77% 78% 76%80%

83%

Increasing pressure to reduce structural costs

Decreases in compensation, legal and structural costs were not nearly enough to offset the

weak revenue performance of the industry in the last couple of years. Huge costs associated

with maintaining disparate systems, legacy landscapes and manual processes must be

addressed.

>

Ø Investment baking ROE

Source: EY, Capital Markets: innovate the FinTech landscape

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ATTRACTIVE SPACE FOR INVESTORS AND FOUNDERSEMPOWERING FINTECH INNOVATION

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$ 3.67tn ~ 8000 $ 96bn

Global financial service revenue pool ‘15

CM revenues of $ 593bn represent 16% of overall

revenue pool. CM pool consists of asset management

and IBs, custodians, exchanges, venues, clearing-

houses and CM focused SPs.

35%42%

7%

16%

40%

6%

45%

10%

Total number of FinTechs in 1H 2016

Despite 16% share in overall revenue pool, only

10% of total number of FinTechs target this

segment.

Cum. equity funding ‘00 – 16’ (H1)

This effect is even more pronounced looking at

total VC funding. CM FinTechs only received 5%

of total FinTech funding since ‘00. Strong catch-

up potential relative to share of revenue pool of

to others.

43%

4%

47%

5%

Retail banking

CM ecosystem

Wealth management

Corporate banking

Source: BCG, FinTech in Capital Markets www.finmill.at

A COOPERATIVE APPROACH IS KEY TO SUCCESSEMPOWERING FINTECH INNOVATION

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1.8

3.13.4

4.5

7.16.7

1.5 1.7

2.9

5.35.7 5.6

Backed by VCs only Backed by the CM Industry

~ 7 years

~ 6 years

Seed

Round C

Round A

Round D

Round B

M&A

62

8

14

95

10

28

7

56

11

24

13

Ø size of funding round ($mln)

2010 2011 2012 2013 2014 2015 2016

Ø number of years to event

Backed by CM industry

Backed by VC only

FinTechs backed by the CM industry attract higher funding…

The presence of CM industry backers signals that the start-ups are high quality

companies with credible business models and good prospects. VCs tend to follow

strategic players in their investment allocation.

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…and move faster to maturity

FinTechs supported by banks or other strategic players, such as exchanges, tend

to reach maturity faster and become more successful than those that are not

backed by such players.

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Source: BCG, FinTech in Capital Markets www.finmill.at

ITHUBA FINMILL MISSION AND SCOPE

FINMILL MISSION AND SCOPE EMPOWERING FINTECH INNOVATION

I

COMPANY BUILDING AT THE CORE

The level of engagement with our start-ups is very high. Founders

accepted to our program are being offered co-working space, capital,

access to financial institutions on board room level, regulatory guidance,

tech consulting and access to our human resources pool.

IICOOPERATIVE BUILDING MODEL

We develop our startups in a cooperative manner with established FIs in

order to leverage each others competitive advantage creating a win/win

situation for both parties.

IVSECONDARY FOCUS

Ithuba FinMill will monitor promising B2C concepts which overlap with

Ithuba’s in-house expertise in the fields of lending, trading, asset

management and real estate.

III

PRIMARY FOCUS

B2B solutions for the financial service industry | Our main focus lies on

CM FinTech solutions which solve complex front-, middle- and back office

problems as well as FI connected platforms increasing transparency and

efficiency in the underlying asset classes/markets.

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FINMILL FOCUS CM FINTECH VERTICLES

FRONT END

MID OFFICE

BACK END

Trading

Data management

Risk management

Business managementOnboarding

Client insight/analytics

Issuance, M&A

CRM

Research

Client servicing

Trade execution

Pre-trade analytics

Post-trade analytics

Business continuity management Cost transparency

IT

Security / anti-fraud

Identity & access management

Post-trade operations

Clearing & settlement

Treasury operations

Fees & invoicing

Reconciliation

Transaction reporting

Tax operations

Collateral & margin management

Custody & asset servicing

Credit, market and liquidity risk

Capital management

Enterprise risk management

Financial control

Product controlFinancial & reg. reporting

Market news and data

Reference data

Compliance

KYC

AML

Policy setting, monitoring, testing

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EMPOWERING FINTECH INNOVATION

www.finmill.at

KEY PILLARS OF THE BUILDING PROCESS

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1

3

4

2

5Regulation and set upResident ventures benefit from Ithuba Capital’s existing licenses,

experience in regulatory matters and operation excellence

Cooperative modelProviding access to an extensive network of FIs on board room level

and facilitating cooperative models (e.g. JV, equity investment,

knowledge exchange, proof of concept etc.) between start-ups and

FIs

Product development Mentorship and support for founders in discovery and

validation stage to test fundamental hypothesis about

product and strategy – Pivoting and development of

underlying concept through internal and external feedback

loops Tech consulting and implementation Setup of technical and functional requirements for the product -

Consultation and support throughout the entire development cycle

from initial specs to deployable versions of the softwareCapital and venture activityInvestment of up to EUR 2 million in resident ventures after

successfully advancing beyond discovery and validation

phase - Continued funding support throughout future

financing rounds to optimize valuation and shareholder

structure/quality


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INCUBATION AND BUILDING PROCESSEMPOWERING FINTECH INNOVATION

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Screening & Scouting Discovery & Validation Efficiency and Scale Profit Maximization Renewal or Decline

Collaboration with

consultancy networks, FIs,

universities, start-up

community and marketing

Validation through network

of FIs, internal resources,

advisors/consultants

Commencement of

cooperative models with

established FIs

INVESTMENT COMMITTEE DECISION 1:

Admission to Ithuba FinMill co-working space and employment of internal resources

CONTINUED INVESTMENT COMMITTEE DECISIONS

Deployment of initial capital and continued funding rounds

WITH COOPERATION PARTNER

www.finmill.at

MANAGEMENT TEAM

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Willi Hemetsberger – Chairman > 30 years experience in investmentbanking. Former CEO ofCreditanstalt Investmentbank and Global Head of Markets atUniCredit Group, Board Member Bank Austria, founder of IthubaCapital AG

#strategic direction #idea generation #networks

Postgraduate degrees from Johns Hopkins University/Baltimoreand the Paul-Nitze-School of Advanced International Studies.

Peter Bichl – Co-Founder, Partner> 12 years experience in asset management, equity capital markets and venture capital.

#strategic direction #strategic management #business model dev #asset management #wealth management #equities #start-up investor #CAIA

Degree in Economics and International Business Administration, Chartered Alternative Investment Analyst.

Yahya Suna – Co-Founder, Partner> 13 years experience in private equity, investment banking and venture capital.

#strategic direction #strategic management #regulation #operations #legal #start up investor #private equity #asset management #finance #transaction structuring #emerging markets

Master degree in International Business Administration from the University of Vienna.

Miwa Blüml, Partner> 14 years experience in financial engineering, trading, risk management consultancy and software development, co-founder Aquantec

#software development #quantitative finance #risk analytics #derivatives #structured products #co-founder Aquantec

Master degree in International Business Administration from the University of Vienna.

Emanuel Schörnig, Partner> 14 years experience in capital markets and risk advisory. Currently head of portfolio advisory at Ithuba Capital AG

#strategic direction #structured credit #trading #derivatives #structured corr products #portfolio management #portfolio analysis #entrepreneur #start up investor

Degree in International Business Administration

Fritz Schweiger, Member IC> 25 years experience in investment banking. Sup’ board member C-Quadrat, former Head of Equities at UniCredit Group

#strategic direction #networks #capital venture activity #founder #start up investor #serial entrepreneur

Doctor’s degree in Law and MBA from the University of Innsbruck


www.finmill.at

ADVISORY BOARD AND PARTNERS

Roland Smertnig - AccentureDirector Global Sales for FS

Janos Koka - CellumFounder Cellum Global

Michael Fröhlich - CAPCOCEO Capco Germany & Austria

Thomas Mayer - IthubaChairman of sup’ board

Serge Ragotzky - PericapFounder Pericap

Ralf Kunzmann – aws GründerfondsManaging Director aws Gründerfonds

Michael Herscovici – Tuned VenturesFounder Tuned Ventures

Oliver Riedel – Baader BankMember of the board Baader Bank

ADVISORY BOARD PARTNERS


www.finmill.at

FINMILL TIMELINE EMPOWERING FINTECH INNOVATION

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2017 Q1

2017Q2

2020Q2

2021Q2

2025Q2

Finalization of fundraisingSoft closing and commencement of active

screening and evaluation of targets

Start of de-investment phaseContinued funding for resident ventures but

no new investments in new FinTechs

Planned runtime endDe-investment of all assets.

End of investment phaseFocus on de-investment of all assets

Start of investment phaseFinal closing of vehicle and commencement of

investment phase

www.finmill.at

CONTACT USEMPOWERING FINTECH INNOVATION

www.websitename.com

Stallburggasse 41010 Vienna, Austria

Tel_+43 1 512 3883 - 0Fax_+43 1 512 3883 - 300

[email protected]

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THANK YOU FOR YOUR TIME

DISCLAIMEREMPOWERING FINTECH INNOVATION

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This presentation has been prepared exclusively for the Recipient duly authorized by Ithuba Capital, is strictly confidential and may not be disclosed to third parties except for

Recipient's advisors which are subject to professional secrecy. This presentation is noncommittal and provided to Recipient for informational purposes only. It is not intended

to be, nor does it qualify as, nor is it related to any solicitation or offer or invitation to buy or sell financial instruments or to effect any transaction or to make any investment

decision. Each and any contractual or other legal relationship between Ithuba Capital and the Recipient requires and is subject to the execution of a specific written

engagement agreement as well as ancillary documents in line with the relevant regulations. Financial instruments mentioned in this presentation are not suitable for all

investors. This presentation assumes and relies on the Recipient's qualification as an eligible counterparty, and where not applicable, as a professional client within the

meaning of the security supervision laws. Investments generally, and derivative instruments in particular are subject to numerous risks, and an investor may lose all of its

investment and, under certain circumstances, even suffer unlimited losses. Past performance is not indicative for future performance of any financial instrument. Any decision

on the purchase or the subscription of any financial instruments cannot rely on this presentation, which does not constitute financial, tax or legal advice. The Recipient shall

consult its own independent advisers, including, but not limited to financial, legal and tax advisers. Neither Ithuba Capital, nor its managers, directors, partners or employees

nor one or more of its affiliates assume any liability or responsibility for damages of any kind incurred in connection with this presentation, any error and/or omissions

contained therein, and its use for any purpose.

www.finmill.at

Ithuba FinMill

Business

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