Investor Presentation

Q2 2020 Financial results

 | DISCLAIMER
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| EXECUTIVE SUMMARY

Established in 2017 with HQ in Riga, Latvia Sun Finance Group is

one of the largest and profitable loan originator group listed on
Mintos platform
€51m
Q2’20 LOANS ISSUED

Group showcases continuous profitability since Q4

€24m
2018, Q2’20 EBITDA reaching €8m Q2’20 REVENUES

Diversified risk profile with presence in 7 countries:

• Current core markets consist of Latvia, Denmark, Poland, Kazakhstan
€8m
Q2’20 EBITDA

48.0%
and Mexico
• In 2019, Sun Finance entered the Vietnamese and Swedish markets
which became part of the Group within Q1’20
CAPITALIZATION
RATIO (Q2’20)

€54m
Data driven approach and use of latest technologies have
helped Sun Finance build a sizeable well-performing
portfolio of ~€54m
NET PORTFOLIO
Continuous strong performance has allowed the Group to
record a sustainable and strong capitalization ratio of 48.0%,
700+
EMPLOYEES WITHIN
showcasing the stable operations
THE GROUP
 | Q2’2020: BUSINESS AND FINANCIAL HIGHLIGHTS
In Q2 2020, Sun Finance tightened its lending policies, following REVENUES (QoQ growth %) NET PORTFOLIO (capitalization ratio%1)
the wider more conservative strategy during COVID-19 outbreak 76.3% 33.3 48.0%
29.5 60.0 59.7 57.6 61.7
28.2 38.1% 54.3
Sun Finance revenues reached €24m, declining 29% QoQ. 52.2
42.4% 23.8 23.6 32.8% 32.1%
However, we have already seen strong recovery in issued 30.6%
19.1 39.3 26.7%
volumes in June and July, which will be reflected in Q3 results 18.7% 23.7%
36.3% 12.7% 22.0%
14.0 4.7% 28.2 28.1%
24.2%
10.7 22.7
As a result, our net portfolio has decreased, amounting to
7.5 18.7%
€54.3m, with the key drivers being Kazakhstan and Poland, given (29.2%)
their relative size of our portfolio

On the flipside, this has resulted in a record level cash balance for Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

the Group as well as significantly increased capitalization ratio of

48.0% - more than double of the bond covenant threshold EBITDA (EBITDA margin %) OPERATING PROFIT (cost/income %)
34.9%33.9% 9.4
28.7% 11.6
Following our in-depth cost review across the business, we can 25.3%26.2%
see these results come to fruition, having recorded a strong 20.3%19.4% 6.6
15.2% 8.5 48.0%
33.9% EBITDA margin for the period as well as maintaining a low 12.4% 8.0 5.6
7.4 41.4%
cost/income ratio of 27.4% 36.4% 4.6
6.0 32.9%
3.7 28.2% 27.4%
24.3% 24.2%
While we expect that some of the costs will return to pre-COVID 3.7
2.9 28.2%
levels (such as short-term pay decreases as well as direct 1.6 1.4 1.5
0.9 0.5
operating costs), we are coming out of this challenging period as 0.0
a leaner and cost-efficient organisation, confident in our ability
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20
to resume on the path that we started in early 2020
Note:
1. Capitalisation ratio calculated as Adjusted Equity (Equity plus Subordinated Debt) to Net Loan portfolio
| BUSINESS OVERVIEW BY GEOGRAPHY
Continued efforts to diversify our business have resulted in a stable, well balanced and growing portfolio as at
Q2’20 – with the latest additions being Swedish and Vietnamese markets

LATVIA POLAND MEXICO SWEDEN

• Population: 1.9m • Population: 38.0m • Population: 129.2m • Population: 10.2m
• Launch: 2017 • Launch: 2017 • Launch: 2018 • Launch: 2019

DENMARK KAZAKHSTAN VIETNAM

• Population: 5.6m • Population: 18.0m • Population: 95.5m
• Launch: 2017 • Launch: 2017 • Launch: 2019
 | DIVERSE CUSTOMER PROFILE
CUSTOMER CHARACTERISTICS SPLIT BY AGE
23% 23%
17%
12%
8% 6%
6%
• 19-75 years old customers with active 3% 2.51%
bank account
18-20 21-25 26-30 31-35 36-40 41-45 46-50 51-60 60+
• Has a valid phone number and ID
• Employed and self-employed with
regular income
CLIENT TYPE (Q2’2020) SPLIT BY GENDER (issued from inception)
• Speed, convenience and price are most
valued by customers
30%
• Has limited credit history 38%
• 55% of the customers choose to use
services repeatedly 62%
70%
New client Female
Repeat client Male
 | PORTFOLIO ANALYSIS
PORTFOLIO OVERVIEW NON-PERFORMING LOANS OF TOTAL LOANS ISSUED LTM (Jul’19-
Jun’20)(€m)
5.2% of total loans issued

15m

• Conservative NPL definition of 91+ days

overdue
• Performing loan portfolio (“Not delayed”, “1-30
days” and“31-90 days”) accounts for 81.3%
• Prudent impairment policy, with effective
Total provisions vs NPLs(Q2’20)
impairment rate of 32.0% of gross loan portfolio 26m
• Strong NPL management resulting in 4.4% of €11.0m
headroom
NPL’s to issued loan volume (171% 15m
coverage
• NPL coverage (total provisions/gross NPL) ratio ratio)
of 171%

Total provisions NPL 91+

 | SUN FINANCE: INVESTMENT HIGHLIGHTS
NOTABLE PLAYER IN ONLINE / MOBILE
CONSUMER LENDING INDUSTRY
• One of the largest and most profitable loan originator
group listed on Mintos platform
• Data driven approach and use of latest technologies
have helped Sun Finance build a sizeable well-
performing portfolio within a short period of time
DIVERSIFIED PORTFOLIO
• Operating in 7 countries with 11 brands, covering a
total population of ~300m people
• Average loan ticket of €195 for Single Payment loans
and €419 for Line of Credit
• €570m+ (loan count of~2.4m) issued loans since
inception in 2017

SOLID FINANCIAL PERFORMANCE EXPERIENCED MANAGEMENT TEAM WITH

PROVEN TRACK RECORD
• Total loans issued showing strong performance and • Management team with exceptional 10+ years of
resilience during a period of uncertainty, reaching experience in management roles in FinTech’s, Finance
€51m for Q2’20 and IT¹
• Tight cost monitoring has allowed Sun Finance to
record 27.4% cost/income ratio during Q2’20,
maintaining a low operating cost base
• As a result, EBITDA margin of 33.9% for the period is
hovering near all time heights ,while net profit during
Q2’20 reached €6.5m – more than FY’19 combined

Note:
1. See more detailed information on the management team in appendix
APPENDIX

9
 | APPENDIX A: INCOME STATEMENT
2018 2019 2020 2019 2020 2019 Q2 vs 2020 Q2
I ncome statement (EURm) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q2 Δ PoP Δ PoP (%)

Turnover 7.5 10.7 14.0 19.1 23.8 28.2 29.5 33.3 23.6 23.8 23.6 (0.2) (0.8%)
Interest expense (0.9) (1.1) (1.5) (2.0) (2.2) (2.5) (2.2) (2.2) (2.2) (2.2) (2.2) (0.0) 0.5%
Net provisions (3.0) (4.7) (6.1) (9.4) (11.2) (14.2) (13.6) (12.3) (9.3) (11.2) (9.3) 1.9 (16.9%)

GROSS PROFIT 3.7 5.0 6.5 7.8 10.4 11.5 13.7 18.8 12.1 10.4 12.1 1.7 16.3%

Salaries and related taxes (1.2) (1.4) (1.7) (2.1) (2.7) (2.8) (2.7) (3.4) (3.0) (2.7) (3.0) (0.3) 9.3%
Direct operating expense (0.6) (0.7) (0.8) (1.0) (1.2) (1.5) (1.6) (2.1) (1.6) (1.2) (1.6) (0.4) 30.6%
Indirect operating expense (0.5) (0.6) (0.6) (0.8) (1.1) (1.2) (1.6) (1.8) (1.2) (1.1) (1.2) (0.1) 12.3%
Marketing expense (1.4) (1.7) (2.0) (2.4) (1.7) (1.3) (1.2) (2.1) (0.7) (1.7) (0.7) 1.0 (59.9%)
OPERATING PROFIT/(LOSS) 0.0 0.5 1.4 1.5 3.7 4.6 6.6 9.4 5.6 3.7 5.6 1.9 52.7%

Other non-operating income 0.1 0.1 0.1 0.1 0.0 0.2 0.3 0.1 0.2 0.0 0.2 0.2 5120.3%
Other expense (0.1) (0.1) (0.1) (0.0) (0.1) (0.2) (0.7) (0.3) (0.1) (0.1) (0.1) 0.1 (40.0%)
NET PROFIT/(LOSS) BEFORE TAXES 0.0 0.5 1.4 1.5 3.6 4.6 6.1 9.2 5.8 3.6 5.8 2.2 62.5%
Profit tax (0.5) (0.6) (0.6) (1.3) (3.0) (3.1) (2.9) (2.0) (2.0) (3.0) (2.0) 0.9 (31.4%)
NET PROFIT/(LOSS) before FX effect (0.4) (0.0) 0.7 0.2 0.6 1.6 3.2 7.2 3.7 0.6 3.7 3.2 553.6%

FX income/(expense) (0.1) (0.2) (0.2) 0.1 0.1 (0.3) 0.4 (6.1) 2.8 0.1 2.8 2.7 1993.6%
NET PROFIT/(LOSS) after FX (0.5) (0.2) 0.5 0.3 0.7 1.3 3.6 1.2 6.5 0.7 6.5 5.8 828.6%
Adj.:
Tax 0.5 0.6 0.6 1.3 3.0 3.1 2.9 2.0 2.0 3.0 2.0 (0.9) (31.4%)
Interest 0.9 1.1 1.5 2.0 2.2 2.5 2.2 2.2 2.2 2.2 2.2 0.0 0.5%
EBIT 0.8 1.4 2.6 3.6 5.9 6.9 8.7 5.4 10.8 5.9 10.8 4.9 83.5%
Depreciation and amortization 0.0 0.0 0.0 0.2 0.3 0.2 0.1 0.1 – 0.3 – (0.3) (100.0%)
FX income/(expense) 0.1 0.2 0.2 (0.1) (0.1) 0.3 (0.4) 6.1 (2.8) (0.1) (2.8) (2.7) 1993.6%
EBITDA 0.9 1.6 2.9 3.7 6.0 7.4 8.5 11.6 8.0 6.0 8.0 2.0 32.7%
EBITDA % 12.4% 15.2% 20.3% 19.4% 25.3% 26.2% 28.7% 34.9% 33.9% 25.3% 33.9% 8.5% 33.7%
 | APPENDIX B: BALANCE SHEET & KEY FINANCIAL METRICS
BALANCE SHEET KEY FINANCIAL METRICS
2019 2020 2019 2020 2019 Q2 vs 2020 Q2 2019 2020 2019 2020
Balance Sheet (EURm) Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q2 Δ PoP Δ PoP (%) Key financial metrics & ratios Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q2
Non-current assets 2.8 2.9 3.1 6.8 8.8 9.6 2.9 9.6 6.7 233.2%
Turnov er 19.1 23.8 28.2 29.5 33.3 23.6 23.8 23.6
Goodwill – – – – 5.5 6.3 – 6.3 6.3 NA
EBITDA 3.7 6.0 7.4 8.5 11.6 8.0 6.0 8.0
Intangible assets 0.8 1.5 1.7 1.9 1.4 1.6 1.5 1.6 0.1 5.6%
Fixed assets 0.9 1.1 1.3 1.4 1.7 1.8 1.1 1.8 0.7 61.4% EBITDA margin (%) 19.4% 25.3% 26.2% 28.7% 34.9% 33.9% 25.3% 33.9%
Accrued D&A (0.2) (0.6) (0.8) (0.9) (0.4) (0.6) (0.6) (0.6) 0.0 (2.6%) Gross loan portfolio 68.2 81.5 85.0 81.6 88.0 80.9 81.5 80.9
Inv estment in subsidiaries – 0.5 0.5 4.0 – – 0.5 – (0.5) (100.0%) Net loan portfolio 52.2 60.0 59.7 57.6 61.7 54.3 60.0 54.3
Deferred tax 0.5 0.4 0.4 0.4 0.5 0.5 0.4 0.5 0.1 14.8%
Capitalization ratio (%) 26.7% 22.0% 23.7% 32.8% 32.1% 48.0% 22.0% 48.0%
Other non-current assets 0.8 – – – – – – – – NA
Current assets 61.2 75.5 81.3 80.8 79.3 80.2 75.5 80.2 4.7 6.2% Interest cov erage ratio 1.9x 2.7x 2.9x 3.8x 5.2x 3.6x 2.7x 3.6x
1
Loans receiv able 68.2 81.5 85.0 81.6 88.0 80.9 81.5 80.9 (0.7) (0.8%) ROA, % 0.2% 1.7% 3.4% 6.7% 7.7% 14.0% 1.7% 14.0%
Prov isions for doubtful debts (16.0) (21.6) (25.3) (23.9) (26.3) (26.5) (21.6) (26.5) (5.0) 23.1% ROE, %2 0.8% 10.3% 20.1% 31.1% 34.0% 48.2% 10.3% 48.2%
Other loans issued 3.7 4.3 6.4 8.0 3.6 6.0 4.3 6.0 1.7 39.3% 3
Cost/Income Ratio, % 32.9% 28.2% 24.3% 24.2% 28.2% 27.4% 28.2% 27.4%
Accounts receiv able – 0.0 0.0 1.6 0.1 0.2 0.0 0.2 0.2 526.5%
Cash in bank 3.1 3.0 7.8 3.9 7.7 11.3 3.0 11.3 8.3 279.4%
Other receiv ables 2.2 8.2 7.4 9.6 6.2 8.3 8.2 8.3 0.1 1.7%
Notes
ASSETS 64.0 78.4 84.4 87.5 88.0 89.8 78.4 89.8 11.4 14.6%
Equity 13.9 13.2 14.1 18.9 19.8 26.1 13.2 26.1 12.9 98.1% (1) Return on Average Total Assets (ROAA) equals Net Income of the period on an
Share capital and subordinated debt 21.5 20.1 19.8 21.0 20.7 20.5 20.1 20.5 0.4 2.1% LTM basis divided by Total Assets at the end of the same period
Retained earnings/(loss) for prior years (7.9) (7.9) (7.9) (7.9) (2.1) (2.1) (7.9) (2.1) 5.9 (73.8%)
Retained earnings/(loss) for this year 0.3 1.0 2.3 5.9 1.2 7.6 1.0 7.6 6.6 645.9% (2) Return on Average Total Equity (ROAE) equals Net Income of the period on an
Liabilities 50.1 65.2 70.3 68.6 68.2 63.7 65.2 63.7 (1.5) (2.3%) LTM basis divided by Total Equity at the end of the same period
Loans payable 39.4 50.7 55.2 47.2 52.8 54.7 50.7 54.7 4.0 7.8%
Deferred income – 2.3 3.3 2.5 2.2 1.8 2.3 1.8 (0.6) (24.1%) (3) Cost / Income ratio is calculated by dividing Operating costs with operating
Accounts payable 4.5 3.1 3.2 3.7 5.2 2.3 3.1 2.3 (0.8) (26.4%) income (revenue)
Taxes payable 2.8 5.8 6.0 8.1 5.7 3.7 5.8 3.7 (2.1) (35.8%)
Accrued expenses 0.9 1.6 0.3 0.6 1.6 0.8 1.6 0.8 (0.8) (48.4%)
Other payables 2.4 1.7 2.2 6.5 0.7 0.4 1.7 0.4 (1.3) (75.6%)
EQUITY AND LIABILITIES 64.0 78.4 84.4 87.5 88.0 89.8 78.4 89.8 11.4 14.6%
 | APPENDIX C: KEY MANAGEMENT
STRONG MANAGEMENT TEAM WITH A PROVEN TRACK RECORD
• Over 10 years experience in senior management roles in consumer lending and general business.
• Regional Director / 4finance Latvia
• Founder & Chairman of the Council / Alternative Financial Services Association of Latvia
CEO & Founder TOMS JURJEVS
• Managing Director / 4finance Latvia
• 2 Business launch across the Europe, growth of start-ups from zero to multimillion businesses
(4finance, Sun Finance)

• Over 5 years experience in team management & fraud prevention (4finance, Sun Finance)
• Group Head of Fraud Management / 4finance
Chief Credit Risk LASMA SUPE
• Senior Consultant Assurance, Audit & Fraud Investigation 7 Dispute Services / Ernst & Young Baltics
& Data Officer • Executed machine Learning approach for fraud prevention based on in-house built solution /
4finance
• MBA / SBS Swiss Business School

• Over 5 years experience in financial sector and audit / KPMG

Chief Financial ELINA ZERNE
•
•
Senior Auditor / KPMG
Leading group auditor for largest short-term lender in Europe
Officer • Participation in due-diligence and bond issuance projects in KPMG
• Master’s degree in Tax administration and ACCA candidate
 | Contacts

Elīna Zerne info@sunfinance.group

Chief Financial Officer Floor 5th
Elina.Zerne@sunfinance.group Skanstes 52
+371 26 429 095 Riga

Kaspars Sils
Head of Funding
Kaspars.Sils@sunfinance.group
+371 25 855 773