0

April 2017

Investor Presentation

1

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4finance Holding (“4finance") for use as an investor presentation and does not constitute a recommendation regarding securities of 4finance.

While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forecasts, opinions and expectations contained herein, are fair and reasonable, no representation or

warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither 4finance nor

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The following information contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or our future financial performance, including, but not limited to,

strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks,

uncertainties and other factors that may cause 4finance’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any

forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,”

“estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate

to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a

material degree. All forward-looking statements made in this presentation are based on information presently available to management and 4finance assumes no obligation to update any forward-looking

statements.

This presentation constitutes neither an offer to sell nor a solicitation to buy any securities in the United States, Germany, Canada, Australia, Japan or any other jurisdiction. Neither this presentation nor

anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever.

In particular, this presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of 4finance in the United States. Securities of 4finance may not be offered or sold in the

United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. 4finance does not intend to conduct a public offering or any placement of

securities in the United States.

Disclaimer

2

1. Introduction to 4finance

2. Lending Process

3. Loan Portfolio

4. Financial Review

5. Strategy and Outlook

6. Appendices

Table of contents

3

Introduction to 4finance

4 Notes: (1) Includes Friendly Finance

(2) Including Friendly Finance and TBI Bank

(3) Issuance volumes to online customers who have returned, ie taken out and repaid at least one prior loan

Putting our customers first, providing a convenient and transparent service using cutting edge data-driven technology

2016 return on average equity

2016 revenue growth

2016 Adjusted EBITDA growth

2016 profit before tax margin

31% 24% 15% 21%

2016 full time employees(2)

16 >3,500

Leading market positions

9

Countries of operation (1)

2016 returning customer business(3)

83%

149

394

2013 2016

Revenue Growth (in millions of EUR)

2.6x

71

137

2013 2016

Adjusted EBITDA (in millions of EUR)

2.0x

4finance: a leader in responsible online/mobile consumer lending

5

Latvia 11%

Lithuania 5%

Finland 6%

Sweden 6%

Poland 24%

Georgia 9%

Denmark 9%

Spain 14%

Czech Republic 4%

Other 3%

FF 4%

TBI 5%

Geographic diversification

LatAm:

3 countries

c.175m people

Europe:

13 countries

c.120m people

2016 Revenue: EUR 393m

6

Most common customer characteristics:

• Has a bank account

• Expenditure matches

monthly income

• Underserved by

traditional banks

• Uses financing for

lifestyle choices or

necessities

• 83% of loans are issued

to returning customers

(2016)

Issuance by customer type (2016)

Client split by age (2016) Applications by source (2016)

55% 37%

8%

Desktop

Mobile

Other4%

18% 17%

25%

18%

12%

6%

18-20 21-24 25-29 30-39 40-49 50-59 60+

83% to

returning

customers 1

loan

2

loans

3

loans

4 and more

loans

Online/mobile customer profile

17% to new

customers

7

Term • Up to 35 days • Up to 24 months

Pricing • Single fee payable at maturity

• Nominal annual interest rate: 58%–96%(3)

• EUR 5–2,120 • EUR 50–3,182

Extension • Option to extend up to 30 days

• Extension fee payable before extension

• Option to reset scheduled repayment by a month

• Extension fee payable before extension

Markets

• Latvia, Lithuania, Finland, Sweden, Poland, Denmark, Georgia, Spain, the Czech Republic, Bulgaria, Romania, Argentina, Mexico, Dominican Republic, Slovakia

• Latvia, Lithuania, Sweden, Poland, Denmark, Armenia, Spain, Romania, the Czech Republic

Single payment loan Instalment loan

Fee amount • Monthly interest rate:

6%–28% in Europe; 30%-40% in LatAm(3)

• Monthly interest payments • Repayment in multiple instalments

Loan amount

(1) Performing online loan portfolio as of 31/12/2016

(2) Average size of loan issued (for Single Payment loan and Instalment loan) and average outstanding balance for Line of credit, data on 31/12/2016

(3) Max term and max loan amount pricing

Distribution channels

• Websites (mobile/tablet/web)

• Apple & Android native apps

• Phone call and SMS

• Offline: agents, loan shops and other partners

• Open-ended revolving credit line

• Monthly interest rate:

8.5%-10.0%

• Limit up to EUR 2,100

• Flexible payment options as long as MRP is met

• Customers can change their repayment date

• Finland, Latvia

Line of credit

• Minimum monthly repayment (MRP)

• First withdrawal for free

• Further withdrawals: 11% of amount

% in portfolio(1) 29.2% 69.8%

• Websites (mobile/tablet/web) • Apple & Android native apps (servicing

only) • Call centre, e-mail, webchat and SMS

(servicing only)

Average loan size(2) • 318 EUR • 772 EUR • 1,804 EUR

1.0%

Clear and simple online product structure

8

• What does responsible lending mean to 4finance?

– Marketing: clear, simple and transparent products and terms

– Pricing: position rates at lower end of market to ‘self select’ responsible borrowers who ‘shop around’

– Underwriting: credit check and underwriting for ALL loans, including returning, with 30% average new customer acceptance

– Customer care: local language, well staffed and responsive teams

– Extensions: limited use (only a quarter of customers), no ballooning interest (interest paid for prior month) or ‘cycle of debt’

– Collections: “push” payments from customer to 4finance, no automatic withdrawal from bank accounts

… these are practices common to mainstream bank lending … only common characteristic with “payday” lending is 30 day term • As a responsible lender, we welcome appropriate regulation

– Active in regulatory / legislative consultations through industry associations and at top Group level including Group CEO

– Supportive of clear regulatory frameworks

– Clear, transparent products and pricing with IT/development resources to adapt products where needed

– Launch of ‘responsible borrowing’ global website (www.responsibleborrowing.com) with local sites in 9 markets

– Secured Consumer Credit company license from Finansinspektionen in Sweden in September, Microfinance organisation registration

from National Bank in Georgia in December, Czech license application underway

– Active preparation / monitoring of upcoming regulatory changes and proposals

Responsible lending is fundamental to our business

9

Lending Process

10

Marketing Apply Underwrite Accept and

Fund Service

A diversified

multi-channel

and data-driven

marketing and

acquisition

strategy

Sophisticated

in-house

marketing

agency and

Digital Hub with

best-in-class

technology

Prospective

customer

applies online

or through a

smartphone

application

Simple,

convenient,

transparent

pricing and

application

process (‘UX’

optimized)

Within a few

seconds,

proprietary

systems pull

data, determine

creditworthiness

and accept or

reject

Customer

executes legally

binding loan

agreement online

and funds are

advanced within

a few minutes

Entire

disbursement

process built

around the

customer

experience to

ensure

satisfaction

More than 700 in-

house specialists

provide support

in local language

across all

markets of

operation

Key performance

indicators are

constantly

monitored to

improve customer

service and

enhance customer

retention

Collection

Well staffed local

in-house debt

collection team

Strong recovery

rates

Full regulatory

compliance with

no controversial

debt collection

practices

External agencies

used for 90+ DPD

collections

Our lending process: online, efficient, data-driven

11

2016 main loan applications

4.1 million

Applications

Proprietary database:

>11.5 million loans issued

>27 million applications reviewed

Traditional, alternative & proprietary

data sources

0.5 million

Applications

2.5 million

Returning

Customers

1.6 million

New

Customers

88%

Acceptance Rate

41%

Acceptance Rate

EUR 737 million

0.4 million

Returning

Customers

0.1 million

New Customers

54%

Acceptance Rate

20%

Acceptance Rate

EUR 75 million

SPL Instalment

Robust credit scoring

Notes: (1) Issuance volumes to online customers who have returned, ie taken out and repaid at least one prior loan

83% of loans are issued to

returning customers(1)

12

• Local approach: more than 700 professional employees speaking

local language

• Focus on quality: employees incentivized according to their personal

and team performance; regular employee knowledge testing and

training

• Accessible: access via multiple channels: phone, e-mail, chat; on

weekends and at night

• Customer centered: strict complaint escalation process, regular NPS

tracking to ensure customer satisfaction

• «Quality Service Star» award received in Poland in 2015 for 2nd

consecutive year

Competitive advantage through Customer Care TrustPilot score by countries Jan 2017

Debt collection principles

• Full regulatory compliance: no controversial collection practices

• Help customers find the best way to pay their loan

• Strong in-house collection teams for early, middle and late collections

• Robust and detailed procedures, based on efficiency and data driven

decisions

• Assuring quality through continuous improvement

High quality international partners

Customer care and debt collection

9.7 9.3 8.2 8.3

9.1 9.2

Vivus.pl Vivus.dk Vivus.fi Vivus.se Zaplo.pl Zaplo.dk

13

Loan Portfolio

14

Net loan portfolio(1), mEUR

Baltics 14%

Scandinavia 15%

Poland 17%

Spain 6%

Czech/ Slovakia

4%

Georgia/ Armenia

6%

Other 0.6%

BG/RO (online) 1%

Bulgaria (TBI) 13%

Romania (TBI) 10%

SME (TBI) 13%

Net loan portfolio, 31/12/2016

(1) Gross loan portfolio less provisions for bad debts. (2) Excludes finance leases. (3) Continuing operations only

Net portfolio c.EUR 500m following inclusion of TBI Bank

• 87% consumer loans

• 64% online loans / 36% banking

• Online loans issued in 2016: EUR 1,157m

- growth of 9% from 2015

538

805

1,062 1,157

2013 2014 2015 2016

Online loans issued(2), mEUR

Bank(2)

Online

TBI Bank: 36%

(funded at c.2%) Online: 64%

(funded at c.12%)

178

241 308

316

178

494

2013 2014 2015 2016

Diversified overall loan portfolio

15

EUR 2,106 m

EUR 1,909m

EUR 197m

Loans issued 10/2014-9/2016(730 days)

NPLs as of31/12/2016

Repaid and performing loans31/12/2016

Conservative online loan provision coverage Non-performing loans (NPLs) as % of total loans issued(1)

9.3% of total

loans issued

Stable NPLs to issued loans ratio(1)

9.2% 8.8% 9.0% 9.3%

2013 2014 2015 2016

• Loans that are overdue more than 90 days are considered as non-

performing (NPLs)

• At the end of 2016, NPLs represented 9.3% of total issued loans over

the last 730 days (excluding acquisitions)

• Actual loss experienced on NPLs is approximately 50%-60% (57% as

of 31/12/2016)

• Provisions for default are typically 5-10 p.p. higher

(1) Total issued loans include the amount of online loans issued, excluding TBI Bank, during 730 days ending 90 days prior to the end of period

57%

66% 80%

9%

Loss given default Provisionfor default portfolio

Provisioncoverage buffer

Overall provisioncoverage

Online: non-performing loans and provisioning stable

16

0%

5%

10%

15%

20%

2013 2014 2015 2016

Spain

Georgia

Denmark

Czech

Poland

Finland

Latvia

Lithuania

Sweden

• Non-performing loans to loan issuance ratio

tends to improve over time in each market

• More data: better scorecards

• More experience: better debt collection

• More returning customers

• Different characteristics for each market

• Portfolio mix shift drives overall Group

NPL/sales ratio (eg growth in Spain)

• Current trend is in line with expectations

• Increases in some markets with lower

new issuance (Finland, Lithuania,

Sweden)

• Higher NPL ratio countries also have higher

interest rates and revenue

• Impairment / revenue ratio stable

NPL / 2 year loan issuance

Online: asset quality trends for single payment loans

17

Financial Review

18

45 49

58 63

30% 22% 18% 16%

2013 2014 2015 2016

Revenue, m EUR

Net profit from continuing operations

(m EUR) and net margin

149

220

318

393

2013 2014 2015 2016

71

90

119 137

2013 2014 2015 2016

Adjusted EBITDA, m EUR Total equity (capital), m EUR

4.6x

3.8x 4.1x

3.6x

2013 2014 2015 2016

Adjusted interest coverage ratio

37%

47%

56%

47%

2013 2014 2015 2016

Capital/net loans, %

Financial highlights - profitable growth

66

113

173

230

2013 2014 2015 2016

19

119 137

2015 2016

318

393

2015 2016

Results show continued progress

• Revenue up 24% to EUR 393.2 million, Adjusted EBITDA up 15%

• Full year cost to income ratio of 48% primarily reflects impact of

acquisitions

• Profit from continuing operations EUR 63.2 million, an increase of 9%

Positive contribution from acquisitions

• TBI Bank: EUR 20m revenue, strong deposit growth in Q4

• Friendly Finance: EUR 14m revenue for H2 2016 (up 65% year-on-year)

• Sharing best practice, strengthening key control functions

Asset quality trends positive, within expectations

• Stable online NPL/sales ratio of 9.3% and impairment/revenue ratio 23%

• Pro-active portfolio management via debt sales (net proceeds demonstrate

prudent provisioning)

• TBI Bank asset quality stable (NPL/gross loans ratio 10.8% with 103%

provision coverage on consumer loans & strong SME collateral coverage)

Revenue

+24%

Net Profit continuing operations

mE

UR

Adjusted EBITDA

mE

UR

mE

UR

58 63

2015 2016

+9%

+15%

Highlights of FY 2016 results: EUR 63m profit

20

Note: Other includes debt collection, legal and consulting, application inspection costs, communications, bank expenses, travel, rent

and utilities, depreciation & amortisation and other expenses

Q1-3 figures reflect reported unaudited results and Q4 figures reflect balance to full year results

• Cost base pre-acquisitions only increased by 4% in H2 2016 compared to H1; TBI only includes two months in Q3

• Selective additional marketing investment in Q4 to support sales growth

• Overall cost/income ratio a focus: revenue increase from growth in non-mature products plus cost efficiency improvements

EU

R m

illio

n

11.6 11.8 12.1 14.6 13.8 13.2 11.2 15.1

6.3 8.3 11.9

12.9 13.9 15.2 16.3 13.3

2.4 2.9

0.6

5.2 3.2 2.9 2.9 2.3

6.3 7.3

7.9

11.8 11.5 10.3 11.8 12.7

5.2 10.1 3.2

2.3

38% 39% 39%

50% 47% 45%

48%

53%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Marketing Staff IT Other TBI FF Quarterly Cost/revenue, %

Limited cost

growth ex-

acquisitions

Additional

marketing

investment

2015 2016

Quarterly expenses breakdown

21

Strategy and Outlook

22

Rationale Why a Bank? What TBI delivers

Offer new products • Credit cards

• POS

• Secured approval to use

Romanian credit card licence in

Poland

Access more markets • EU Passport licence • New market access over time

Lower cost of funds for online loans

• Access to deposit funding • EUR 224m of deposits at c.2%

• Capacity to grow

TBI Bank: A strategic acquisition

23

Strengthening

foundation

Leveraging on

technology

• Maintain market leadership in

established core markets

• Marketing Technology for better

targeting and product offering

• Continuous development of scoring

systems

• Electronic wallet, card payment

• Big data: leverage existing

proprietary database for product

development

Product

roll-out

Geographical

expansion &

diversification

• Developing operations in recently

entered markets: Romania,

Argentina, Mexico, Dom. Rep.

• Continue to pursue selective

expansion opportunities

• Continue instalment loan roll-out

• Line of credit launched in Finland &

Latvia, planned in other markets

• Expansion in Latin America,

potentially Asia

• Continuous operational

improvements, including

adaptation to new regulation

Sustainable

growth

• Pilots of additional products

(eg point of sale, credit cards)

Strategy for sustainable growth

24

• 4finance has established a leading business

• Solid full year results, driven by online business, delivering EUR 63 million net profit and EUR 137

million Adjusted EBITDA

• TBI Bank contributing to overall results, with multiple initiatives underway

• New market and product investments not yet mature: 15 of our 33 product instances launched H2

2015 onwards

• Large scale, market leading operator with capabilities in place to deliver future growth

4finance continues to deliver

Conclusion

25

Appendices

26

INCOME STATEMENT, M EUR FY’2015

audited

FY’2016 audited

% Change

Interest income 318.3 393.2 24%

Interest expense (28.7) (38.7) 35%

Net interest income 289.6 354.5 22%

Net fee and commission income - 2.1 n/a

Net impairment losses on loans and receivables (77.0) (89.7) 17%

General administrative expenses (133.9) (190.4) 42%

Other income/(expense) (4.9) 4.5 n/a

Profit before tax 73.8 81.0 10%

Tax (15.7) (17.8) 14%

Profit from continuing operations 58.2 63.2 9%

Discontinued operations, net of tax 5.9 - (100)%

Net profit 64.1 63.2 (1)%

Net impairment to revenue ratio % 24% 23%

Cost to income ratio % 42% 48%

Net profit margin (continuing operations), % 18% 16%

Income statement

27

KEY RATIOS FY’2015 FY’2016

Capital/assets ratio 40% 25%

Capital/net loan portfolio 56% 47%

Adjusted interest coverage ratio 4.2x 3.6x

Return on average equity(1) 41% 31%

Return on average assets(1) 16% 9%

BALANCE SHEET, M EUR FY’2015

audited

FY’2016

audited % Change

Loans and advances 308.3 493.9 60%

Cash and cash equivalents 56.9 157.6 177%

Assets held for sale - 16.0 n.m.

Property and equipment 4.3 12.3 186%

Intangible assets (IT platform) 17.4 39.8 129%

Goodwill 0.6 43.4 n.m.

All other assets 50.7 168.4 221%

Total assets 438.2 931.4 113%

Loans and borrowings 229.5 397.2 73%

Deposits from customers 9.1 237.1 n.m.

All other liabilities 26.3 67.3 156%

Total liabilities 264.9 701.2 165%

Total equity 173.3 229.4 33%

Total equity and liabilities 438.2 931.4 113%

(1) RoAE and RoAA based on net profit from continuing operations

Balance sheet

28

Uldis Arnicāns Shareholder of 25.5%

Loucas Andreou Shareholder of 49%, holding shares in trust on

behalf of Vera Boiko

Edgars Dupats Shareholder of 25.5%

Vera Boiko Beneficial owner

Control over shares through Trust Deed

4finance Group S.A. (Luxembourg), 100%

Tirona Limited (Cyprus)

Ownership structure

29

Summary corporate structure

For footnote references, please refer to the summary corporate

structure in the preliminary Offering Memorandum

30

− Over 20 years of banking experience

− CEO of Bancpost, the retail focused Romanian bank

− Group Country CEO and Executive VP at Eurobank

− 13 years at Barclays Bank and Barclaycard with senior roles including

head of strategy for new business opportunities in IT/tech.

− From 1997-2000 was seconded to EBA Clearing to establish the pan-

European clearing system, working extensively with major banks across

Europe and the European Central Bank.

− Over 20 years of experience in establishing successful internet

enterprises throughout Europe

− Managing major web projects for high street banks

− Launching SAAS startups in the CEE region

− CTO at CashPlay.Co

− IT Manager at IFlow Solutions

− CEO and Founder at C2D

− Part of 4finance management team since 2011

− Over 16 years of experience in the financial sector and audit

− Head of Finance Division / Finance Planning and Control Department at

Citadele (ex. Parex), a leading local bank in Latvia

− Auditing and due diligence projects in PriceWaterhouseCoopers

− Member of ACCA

− Over 27 years in the Consumer Finance industry, covering major

markets such as the UK, Russia, the Middle East and Africa

− CEO at RenCredit Africa

− Senior Vice President at Renaissance Credit

− EMEA Business Development Manager at The Collinson Group

George Georgakopoulos

Chief Executive Officer

Mārtiņš Baumanis

Executive Vice President, Loans

Stuart Watkins Chief Information Officer

George James Taylor

Executive Vice president, Strategy & Development

Nick Philpott Group Head of HR and

Tax

− Over 25 years of experience in the financial sector and the

accounting profession, working in London, Moscow and Paris.

− Managing Director at Credit Suisse, Renaissance Capital

− Partner at Ernst&Young.

Sanda Laicēna Group Head, Legal

and Compliance

− Over 20 years of experience in the legal sector

− Lawyer at Central Bank of Latvia

− Head of Customer Service Legal Department and Deputy Head of

Legal Division at Citadele (ex. Parex)

Manu Panda Chief Risk Officer

− Over 23 years of experience in consumer lending & credit card

industries, risk experience spans various leadership positons at blue-

chip companies, including Barclays, Citibank and GE Capital

− Regional Vice president, leading Information Services at MasterCard

Asia Pacific

− Managing director, Decision Analytics for Experian covering 12 markets

across Asia Pacific

Paul Goldfinch Chief Financial Officer

− 25 years of experience in financial sector

− CFO of the Corporate and Investment Bank Division of Sberbank

(Russia)

− Senior roles at UBS, including EMEA Regional Head of Accounting and

Controlling

− COO/CEO of UBS Bank Russia

Management team

31

4finance aims to operate as a “quasi-public” company in terms of board structures, investor transparency and public reporting

Nicholas Jordan

Chairman 4finance Group SA Supervisory Board

William Horwitz

Member of the Board

Dr. Cornelius Boersch

Member of the Board

Mr. Jordan has over 30 years of financial services experience, including 20 years in senior

positions with banks including Goldman Sachs (Co-CEO of Russia and CIS), UBS (Co-CEO of

Russia and CIS), Nomura (Chairman & CEO of Russia and CIS) and Deutsche Bank (Vice

Chairman). He is currently CEO of private equity firm Finstar Financial Group.

Mr. Horwitz is an independent FinTech advisor with over 20 years of experience in financial

services, including Barclays (as Director of Collections & Recoveries for Europe Retail & Business

Bank) and Capital One (14 years, including as VP of US card recoveries and MD of Capital One

Spain). He was formerly president of WDFC SA, guiding the restructuring of the company for FCA

licensing and suitability.

Dr. Boersch is the founder of venture capital firm Mountain Partners and has been a passionate

entrepreneur, investor and founder of numerous technology companies for the past 25 years. He

founded his first company whilst studying, developing it into the smart card broker and RFID-

producer ACG AG and successfully floating it on the Frankfurt Stock Exchange in 1999.

Mark Ruddock

Member of the Board

Mr. Ruddock is CEO of FinstarLabs and has over 15 years of leadership experience in venture-

backed startups, spanning enterprise software, mobile applications and online financial services.

High quality supervisory board

32

{acquisition}

Evolution of 4finance

2008 2009 2010 2011 2012 2014 2013 2015

Number of countries:

2016

2 3 4 4 7 10 10 14 16

LATVIA

LITHUANIA FINLAND SWEDEN DENMARK

POLAND

SPAIN

GEORGIA CZECH

REPUBLIC

BULGARIA

ROMANIA

ARMENIA

ARGENTINA

MEXICO

DOMINICAN

REPUBLIC

SLOVAKIA

33

97 105 132

55 65

62 153

169 194

0

50

100

150

200

2014 2015 2016

SME

Retail

Net loan portfolio(1), mEUR

Consumer gross portfolio by type, 31/12/2016

(1) Gross loan portfolio less provisions for bad debts, based on management reporting, book value. Includes finance leases

50% 43%

6% 1% Cash loans (EUR598 av.size, 121k active, 47% av.Rate)

POS (EUR269 av. size, 233kactive, 35% av. Rate)

Cards (EUR259 av. size, 33kactive, 28% av. Rate)

• Solid and consistent profitability

− EUR 16.6m net profit in 2016 (vs EUR 16.6m in 2015)

− Return on equity of 25% in 2016

− EUR 7.5 million post-acquisition contribution to Group net profit in 2016

• Strong retail business growth

− EUR 42 m additional consumer deposits in Q4 at sub 2% blended cost

− EUR 14 m growth in consumer loans in Q4

• Stable asset quality and robust capital ratios

− 10.8% gross NPL ratio with low impairment to revenue ratio

− Capital Adequacy Ratio of 22.3% remains robust with substantial headroom

TBI results: solid year end performance

TBI Bank update: solid results

34

• Market entry strategy is based on slow start to minimize cost and maximize option value:

• Extensive market research and diligence, in-house and with external consultants

• Low initial capital injections: <EUR 3m in 6 months

• Low roll-out risk

• Market efficiency tested and scorecards fully ready in 6 months

• Target month-on-month profitability within 18 months

• Denmark case: month 13

Research Soft Launch Prepare

Understand:

• Market

• Pricing

• Competition

• Regulation

• Payments

Ramp-up

-400

-200

0

200

400

600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Net profit (loss) Marketing expenditure

Marketing expenses vs. net profit (loss)

Breakeven

First 18 months

0

2,000

4,000

6,000

8,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Net loan portfolio Capital injected (cumulative)

kEUR

Capital injected vs. net loan portfolio First 18 months

kEUR

Establish:

• Licenses

• Office

• Key team

• Develop ‘minimum

viable’ product

• Start lending

• Limited marketing

• Rapid feedback to

develop product

and risk scorecard

• Full marketing

• Brand awareness

• Consumer

education

• Economies of scale

• Understand repeat

customer behaviour

Market entry strategy: example of Vivus in Denmark (2012)

New market entry: case of Denmark

35

• Highly flexible and well-structured business model of 4finance

allows the Group to smoothly withdraw from markets where

operations do not prove to be viable, as demonstrated by the exit

from the Estonian market:

• In March, 2015, Management of 4finance decided to exit the

Estonian market after less than 2 years of operation

• Market exit executed in 4.5 months

• Marketing expenses reduced by 97% in the first month following the

decision

• # of staff reduced by 45% in the first two months following the

decision

• 77% of net loan portfolio value collected in the first 3 months

• At the final exit date, 21% more cash recovered compared to the

net loan portfolio at the decision date

• Overall, an efficient exit with minimum impact on the total

performance of the Group

-60

0

60

120

180

240

300

360

Month 1 Month 2 Month 3 Month 4 Month 5

Cash inflows Administrative costs Net inflows

Cash flows during the exit kEUR

Net loan portfolio vs. recovered cash 4.5 months to complete exit (since March 11, 2015)

835 kEUR

1,013 kEUR

350

180 112

90 40

242

Net portfolio Cash flow 1 Cash flow 2 Cash flow 3 Cash flow 4 Cash flow 5 Total cash

Net loan

portfolio as of

11/03/2015

Total cash

recovered:

Sale of portfolio

Sale of portfolio

Office closure

(1)

(1) Excluding charges from the Group’s HQ (IT and management)

Market exit: case of Estonia

36

4finance - Investor Relations

Email: investorrelations@4finance.com

Contact: James Etherington

Phone: +44 7766 697 950

Registered office: Lielirbes iela 17a-8, Riga, LV-1046, Latvia

Contacts