Group Presentation - MARCH 2019 - equfin
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Group Presentation MARCH 2019
About
equfin
₋ equfin (formerly 4C Capital) is a Cyprus-based
fast-growing digital consumer lender with
operational presence in three countries
₋ Established in March 2012 as a licensed
microfinance institution in Georgia
₋ Commenced online lending operations in 2014
₋ Expanded to Ukraine in 2016 and Spain in 2017
₋ InandQ3filed2018,FSAincorporated
application
a Danish subsidiary
₋ Mainly focuses on online payday loans
₋ Operates CC Loan and MisterCash brands
Copyright © 2019 equfin HOLDINGS 2
Key
Strengths
₋ Liquid balance sheet ₋ Regulated by central banks or supervisory
agencies
₋ Experienced management team ₋ IFRS 9 adoption completed
₋ Automated risk management system
₋ Fully collateralized offline loan portfolio
₋ Disciplined financial accounting & audit by
big four companies ₋ 2018 financials audited by EY
₋ Deep expertise in scoring clients with limited
or no credit history
₋ Proprietary, in-house developed cloud-based
software
₋ Strong client retention ₋ Best customer service practice
Copyright © 2019 equfin HOLDINGS 3
Achievements
so far
2.3 Million 1 Million 1 Million
Online Applications Received Online Loans Issued Registered Clients
Gained Access 77% 3
To Crowdfunding Platform Returning Client Business Countries of Operation
(CrowdCredit)
Group Revenue Group Loan Yield
US$ ‘000s
21,890 248.4%
123.7%
9,085 77.2%
6,694 47.1%
4,039 34.4%
2,218
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Note: Group revenue is a sum of the revenue of all subsidiaries in Georgia, Ukraine and Spain Note: Group loan yield equals gross revenue of the group for the period divided by average
net loans of the group for the period
Copyright © 2019 equfin HOLDINGS 4
Revenue vs. Loan Book
Contributions, Liquidity & Credit Quality
Gross Revenue By Country Borrowed Funds NPL Ratio
FY 2018 Coverage Ratio* 38.0%
Spain, 23.2%
Georgia, 7.3% 26.7%
Ukraine,
69.5%
21.5% 25.8%
Gross Loans By Country 13.8%
YE 2018
Ukraine,
33.4%
Spain, 44.8%
Georgia, 21.8%
YE 2017 YE 2018 YE 2016 YE 2017* YE 2018
Note: *available cash vs. total borrowed funds Note: NPL ratio equals loans overdue by more than 90 days divided
by gross loans outstanding
*Decrease in NPL ratio in 2017 is a result of the sale of a significant
portion of bad debt portfolio in Georgia
Copyright © 2019 equfin HOLDINGS 5equfin
Spain
₋ Established in August 2017
₋ Offers online payday loans
₋ Operates under CC Loan Spain brand name
₋ Over 16,000 active borrowers
₋ in 2018
US$ 15 million worth of loans disbursed
₋ Net loan book size of US$ 2.6 million
₋ Monthly loan yield of 21.6%
₋ Average payday loan size of ca. US$ 320
Copyright © 2019 equfin HOLDINGS 6equfin
Spain
Loans Issued Net Loan Portfolio
US$ ‘000s US$ ‘000s
2,575
4,384 2,364
4,264 2,056
3,836
2,923 1,647
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Interest Income Quarterly Loan Yield
US$ ‘000s
72% 71%
1,670 69%
1,378
1,190
817 62%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Note: loan yield equals gross revenue for the period divided by net loans for the period
Copyright © 2019 equfin HOLDINGS 7equfin
Ukraine
₋ Established in March 2016
₋ Exchange Commission of Ukraine
Regulated by the National Securities & Stock
₋ Offers online payday loans
₋ Operates under CC Loan Ukraine brand name
₋ Over 37,000 active borrowers
₋ US$ 25 million worth of loans disbursed
in 2018
₋ Net loan book size of US$ 3.8 million
₋ Monthly loan yield of 28.0%
₋ Average payday loan size of ca. US$ 97
Copyright © 2019 equfin HOLDINGS 8equfin
Ukraine
Loans Issued Net Loan Portfolio
US$ ‘000s US$ ‘000s
7,255
6,262 6,563 3,845
5,309
3,387 3,437
3,369
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Interest Income Quarterly Loan Yield
US$ ‘000s
2,957 2,985 3,038
2,486 104%
103%
100% 98%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Note: loan yield equals gross revenue for the period divided by net loans for the period
Copyright © 2019 equfin HOLDINGS 9equfin
Georgia
₋ Established in March 2012
₋ Regulated by the National Bank of Georgia
₋ Online payday loan disbursement was
suspended in early 2018 due to regulatory
changes
₋ 400k registered clients
₋ US$ 900k offline consumer loans disbursed
in 2018
₋ Net loan book size of US$ 2.0 million
₋ Monthly loan yield of 4.8%
₋ Average offline consumer loan size US$ 1,500
Copyright © 2019 equfin HOLDINGS 10equfin
Georgia
(New loan issuance suspended, early 2018)
Gross Loan Portfolio Net Loan Portfolio
US$ ‘000s
US$ ‘000s
3,218
3,893 2,888
3,636 2,442
3,122 1,960
2,632
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Interest Income Quarterly Loan Yield
US$ ‘000s
434 12.2%
292
258 225 10.8%
10.7%
10.3%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018
Note: loan yield equals gross revenue for the period divided by net loans for the period
Copyright © 2019 equfin HOLDINGS 11Strategic
Objectives
₋ Strengthen positions in the core markets ₋ Diversify funding sources
₋ Further develop the operating platform ₋ Minimize currency risk
₋ Decrease the share of short-term funding ₋ Focus on growth vis-a-vis profitability
₋ Improve corporate governance ₋ Identify new markets for potential expansion
₋ Expand the product range (installment loan,
payroll lending, etc.)
₋ Become a fully fledged licensed financial
institution
Copyright © 2019 equfin HOLDINGS 12equfin
2019 Targets
Gross Loan Portfolio Net Loan Portfolio
US$ ‘000s US$ ‘000s
11,570
19,592
7,293
11,135
2018 2019 2018 2019
Group Revenue Group Loan Yield
US$ ‘000s
27,930 296%
21,890
248%
2018 2019 2018 2019
Note: loan yield equals gross revenue for the period divided by net loans for the period
Copyright © 2019 equfin HOLDINGS 13Equfin
Further Expansion & Growth Plans
Four new targets markets selected,
two in central Asia, one in the
Caucasus and one in Europe
Existing Markets & Operations
New target Markets
Copyright © 2019 equfin HOLDINGS 14Contacts
Bidzina Bejuashvili
Chief Executive Officer
E-mail: bbejuashvili@equfin.com
Mobile: +357 99 989601 Antheon 2, Monovoliko
Kato Polemidia
David Alimbarashvili Limassol 4151, Limassol, Cyprus
Chief Operating Officer
E-mail: dalimbarashvili@equfin.com
Tel: +357 25 367377
Mobile: +995 591 400 113
Fax: +357 25 367378
Guram Gogeshvili
Chief Financial Officer
E-mail: guram@equfin.com
Mobile: +357 99 882900
Copyright © 2019 equfin HOLDINGS 15Disclaimer
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 equfin Holdings nor any of equfin Holdings’s advisors or representatives shall have any
responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in
connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may
change materially.
This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic
initiatives and other statements relating to our business development and financial performance. These forward-looking statements speak only as of the date they are
made and, subject to compliance with applicable law and regulations, equfin Holdings is under no obligation and expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking statements contained in this presentation to reflect actual results, changes in assumptions or changes in
factors affecting those statements or as a result of new information, future events, or otherwise.
Undue reliance should not be placed on any such statement because these forward-looking statements represent our judgments and future expectations concerning the
development of our business, and by very nature, are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual
developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macroeconomic, governmental,
legislative and regulatory trends, (2) movements in local and international currency exchange rates and interest rates, (3) competitive pressures, (4) technological
developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties and developments in the markets in which they
operate, (6) management changes and changes to our group structure and (7) other key factors that we have indicated could adversely affect our business and financial
performance, which are contained elsewhere in this presentation. Performance indicators are derived from our unaudited financial statements and IFRS-based
management accounts. The information contained in this presentation is as of the date of this presentation, is based on general information gathered as of such date
and is subject to changes without notice. equfin Holdings relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or
completeness.
Copyright © 2019 equfin HOLDINGS 16You can also read
