stikcreditSmart Data. Instant Loans.

Listed on:

The Company

Highlights

• 137% growth in monthly issuance volume since the beginning of 2019

• Net profit increased 186% in FY18 vs FY17

• Regulated by a European banking and financial services regulator

• Proprietary IT platform incorporating latest FinTech innovations

Stikcredit is a European FinTech company underwriting short-term consumer loans entirely online.

We lend money where traditional banks don’t and we are on a mission to make credit as easily accessible as 1 click on any device.

We operate on the Bulgarian market since 2013 and we have bold plans for global expansion.

x

Stikcredit leverages existing innovations in FinTech to underwrite short-term consumer loans entirely online.

• State-of-art machine learning scoring algorithm combined with big data analytics perform behavioral analysis of all past loans, taking into account demographic, employment and credit history of all applicants.

• Data is automatically retrieved from the application form, external and internal databases to generate a score matching exactly every customer’s risk profile.

• The company runs on an internally developed cloud-based system supporting all core company activities from loan application processing to loan management and financial reporting.

• The system allows for full automation of a large number of processes and is easily integrated to external applications and services via APIs.

• Stikcredit is positioned for growth entirely online. We structure and develop our processes with an online mindset.

• The company does not require significant capital investment for physical offices and staffing in order to achieve rapid growth and to penetrate new markets.

• The operating processes are efficient, automated and scalable.

Machine Learning

Scalable Business Model

Proprietary IT Platform

• Stikcredit granted over EUR 14m in loans since inception and achieved a net profit margin of over 60%.

• The company maintains impressive cash collection rate of 134% of the granted loan amount.

• Stikcredit generates strong growth achieving a CAGR of 52% in terms of loan issuance volume.

Profitable Track Record

Strong customer engagement and user growth. The company has over 11 000 active customers and 65% returning customers.

4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

30,737

35,972

40,608

45,021

51,086

60,046

70,290

79,841

• The number of unique customers grows by CAGR of 12.7% per quarter for the past 2 years. We currently add almost 10,000 new applicants every quarter. Stikcredit has more than 80k unique applicants and 11k active clients.

• Stikcredit has almost doubled the rate of granting loans since the beginning of 2019 - strong confirmation for customers’ demand. The company enjoys very high levels of customer loyalty with share of returning customers reaching 65% for all quarters in the past 2 years.

• Tailored promotional activities and enhanced sales tactics place Stikcredit ahead of its competitors. The company is on track to grant 30,000 loans in 2019.

Number of granted loans Share of returning customers

0%

20%

40%

60%

80%

4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

2,340

2,936

2,985

3,519

4,234

4,973

7,696

7,695

0

1 00 0

2 00 0

3 00 0

4 00 0

5 00 0

6 00 0

7 00 0

8 00 0

9 00 0Number of loans granted

Unique registered customers (cumulative)

Target Client Profile

Private Individual

20 to 45 years old

Regular Income

Tech Savvy

Good or No Credit

History

Little or No

Savings

Geographical Expansion in 2020.Stikcredit operates on the Bulgarian market and sees a significant upside potential with expectations to reach a 4% market share over time - currently standing at 0.3%.

The company has additionally identified three attractive Eastern European markets and envisions that the expansion will take place in the second half of 2020.

Bulgaria

Population: 7 millionGDP: 65.2 billion USD

Macedonia

Population: 2.1 millionGDP: 12.7 billion USD

Kosovo

Population: 1.8 millionGDP: 8.0 billion USD

Albania

Population: 2.9 millionGDP: 15.4 billion USD

6

x

Our comprehensive loan management system and sophisticated credit scoring models provide Stikcredit with a significant competitive edge.Our business model is built around full automation.

• Online: desktop and mobile optimized website• Mobile: Android and iOS app• Offline: national office network• Affiliate network: online and

offline• Call center

• Automated collection of data from loan application, internal and external databases.• Instant fraud-check against

internally developed rules• Data analysis, scoring and risk

assessment based on proprietary scoring model• Decision based on probability of

default and calculated credit limit

• Automated generation of loan documentation• Electronic signing of loan

documentation• Automated advancement of loan

amount via electronic money transfer

• Automated reminders for due payment: SMS and e-mail• Robotized calls for overdue

payments• Information & task distribution

module for call center• Legal department module

• Robust entirely in-house developed CRM system• Automated client communication:

celebratory messages, promotions and reminders• Omni-channel integration:

Facebook, Viber, SMS, e-mail, webchat and telephone• Product usage analytics module –

generates promotions tailored to client’s behavior and product use

Multi-channel Client Acquisition Scoring Process Loan Issuance Loan Management Client Relationship

Management

Sophisticated machine learning scoring algorithm.

Automated Data

Collection

Data Analysis &

Scoring Model

Application Decision

Loan Performance

& Client Behavior

Proprietary system collects thousands of data points from multiple sources:• Credit history• Employment records and income• Location and demographics• Connection with existing clients• Tax and social security liabilities• Social media profile analysis

Our proprietary scoring algorithm analyses all data in real time and returns an individual risk profile for each application.

Our self-learning scoring algorithm is continuously fed loan performance data and significantly improves loan recovery rates over time.

Credit decision is made based on the customer’s individual risk profile and credit limit.

Loan performance and customer behavior data post-issuance is continuously fed into the machine learning algorithm for improved performance.

Simple yet robust product mix supported by the most innovative solutions in the FinTech space.

EUR 50 to 4005 to 30 days

• Single payment loans with short maturity of up to 30 days and maximum amount of 400 EUR

• 0% interest for new customers• Processed in seconds

Payday Loans

EUR 100 to 2 5003 to 24 months

• Installment loans repaid at equal monthly installments

• Maturity of up to 24 months• Maximum amount of 2 500 EUR

Installment Loans

All new customers receive 30 days grace period on their first payday loan.

Every new customer undergoes strict identity verification procedure.

Secure

Loan documentation is signed electronically.

Simple & Quick

Powerful Sales Tactics

The product range and loan terms are perfectly aligned with the customers’ needs. The company actively monitors competitors’ activities and adjusts its strategy accordingly.

520

465

573

491

552

570

685

789

587

709

811

790

751

771

1,182

1,483

1,295

1,402

1,638

1,785

1,424

1,754

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

22.5%

25.0%

27.5%

30.0%

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19

Thou

sand

s

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Cash collected Loans granted in EUR millions

Collection from granted loans

60+dpd % Principal granted in EUR thousands

Principal issuance rate and delinquency

• Our proprietary scoring model and the company’s robust risk management framework have allowed Stikcredit to continuously increase the amount of loan disbursements while maintaining low and consistent delinquency rates. Stikcredit’s highly efficient operations and debt collection practices help us achieve an average cash collection rate of 134% from granted loans.

• Stikcredit has recorded a growth in issuance volume of 52% per year for the period Jan14 – Dec18, reaching total outstanding principal of EUR 4.0m as of October 2019.

• Strict risk management controls ensured stable delinquency levels and enhanced profitability. Despite the significant pick up in lending volume, the % of loans which are 60+ days delinquent remain below 10% for every vintage month.

Strong Portfolio Performance328% growth in loan issuance volume in the past 24 months.

Profit and Loss Summary

• All figures are in thousand of EUR.

• Stikcredit prepares its financial statements in accordance with the Bulgarian National Accounting Standards. Stikcredit will transition to the IFRS by end of cal19’.

EUR, '000 9M19 FY18 FY17

Revenue from interest 342 143

Other revenue from operations 985 474

Total revenue 1 990 1 327 617

Income/loss from financial operations - (11) (2)

G&A expenses (812) (300) (72)

Personnel expenses (352) (108) (41)

Other costs (461) (192) (31)

Interest and other financial expenses (105)

Profit before tax 1 072 1 016 543

Income tax (15) (102) (54)

Net profit 1 057 914 489

Stikcredit executes its growth strategy with perfection and in 2018 our Gross revenue increase by 115% vs. 2017. The company’s net profit has almost doubled increasing by 86% y-o-y. The company maintained its strong momentum throughout 2019 and we are on track to double our Gross revenue for the financial year. The strict financial policy and robust risk management framework allow the company to maintain excellent financial and operating health:

• Stikcredit maintains a net profit margin of 62%;

• we have kept our customer acquisition costs within our desired targets;

• we observe stable recovery rates at 100% of the cash granted within the first 4 months of loan issuance;

Strong operating results and excellent financial health with 62% profit margin.

Balance Sheet

EUR, '000 Sep-19 Dec-18 Dec-17

Assets

Cash and cash equivalents 867 411 238

Loans to clients 3,000 2,300 1,105

Other receivables 27 27 30

Long-term assets 49 7 6

Total assets 3,945 2,745 1,378

Equity and liabilitiesOther liabilities 53 246 58

Accruals and deferred income 778 441 176

Share capital 515 515 515

Reserves 26 26 26

Retained earnings 1,521 607 119

Uncovered loss -5 -5 -5

Profit or loss for the financial year 1,056 914 489

Total equity and liabilities 3,945 2,745 1,378

• Our asset base continues its strong expansion and we forecast to have over EUR 4 million of outstanding loans to clients by the end of 2019.

• All generated profits are reinvested back into the business to support its strong growth and maintain low levels of financial leverage.

Total assets double in size every year.

stikcredit

We are happy to address all your questions and requests.

e-mail: investors@stikcredit.comwebsite: https://stikcredit.comtwitter: twitter.com/stikcredit

telegram: t.me/stikcredit

Please contact us for any further details or requests: