ID Finance and Mintos Cooperation Overview
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 MISSIONINTERNATIONAL CONSUMER FINANCE 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
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
4
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
$197m
2017
5
ID Finance 2017 Results And 2018 Year Outlook
Loans issued ($m) dynamics Revenue ($m) dynamics
$421
$14$36
$92
$197
$750
50
100
150
200
250
300
350
400
450
2014 2015 2016 2017 2018E
113% 2017-18
144% 2014-17
CAGR
$232
$5
$20
$62
$122
$470
50
100
150
200
250
2014 2015 2016 2017 E2018
90% 2017-18
184% 2014-17
CAGR
Actuals Forecast
6
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
7
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…)
8
FUNDS ATTRACTED INCREASED TO $3M PER QUARTER
ID Finance and Mintos cooperation
Funds attracted via Mintos, $k
Key highlights
Investors’Net Income
$6.5m$0.5m
Net outstanding portfolio
534
1 3561 566
3 677
0
500
1000
1500
2000
2500
3000
3500
4000
Q2 2017 Q3 2017 Q4 2017 Q1 2018
EUR GEL
Kazakhstan – astonishing market opportunity
10
LONG TRACTION OF SUCCESS
ID Finance in Kazakhstan Overview
TOP-1 market player in Kazakhstan
c. 0,5m clients
$10+ m net income (2018) ($5m in 2017)
Growth 400% in net loan portfolio (CAGR Q1 2014 vs. Q1 2018)
ID Finance in
Kazakhstan
Convenient online tool for
customers to finance their needs
ID Finance in Kazakhstan2014 Launch
11
SIGNIFICANT PORTFOLIO GROWTH KEEPING PORTFOLIO QUALITY STABLE
Net Loan Portfolio Dynamics
0,08 0,320,7
2,75,3
7,0
10
15
21
0
5
10
15
20
25
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Q1 2018
12
Addressable Market Overview
MoneyManFeb-14
18m population (2017);
20m in 5 years
9m able-bodied
population
Population
Internet penetration
$5bn
Addressable market
80% population
use has internet access (2017)
+70pp in 10 years
Key growth drivers:
Product penetration increase
Offline players switch to online
*Source:…
TOP-1
Solva.kz share is 5%
in Q1 2018
Market Position
Solva.kzMay-17
13
Key Achievements
MFI license
Credit ratingA+
Founder of FintechAssociation
Active market player40% market share
14
SUPERIOR USER EXPERIENCE
Innovative Product
User-friendly website
200k-500kKZT
Max loan size
5minutes
Loan application time
12months
Max loan duration
Monthly payments
Flexible schedule
Male
35 years old
High education
Married
1 child
Full-time job, manager
Owns a house or an apartment
Client profile
($625 - $1560)
15
INVESTOR KEY VALUE PROPOSITION
Kazakhstan and Mintos
Interest rate
Loan term
Currencies
10.5% (EUR)
17% (KZT)
EUR and KZT1.25% conversion rate btw EUR and KZT
6 – 12 months
Guarantees Buyback guarantee: NPL 60d+ loans are bought back by ID Finance
1616
CFO @ ID Finance [email protected]
Thank you!
Boris BatinCo-founder, CEO @ ID Finance
Alexander Pak
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