home credit/media/files/h/home-credit-group/documents...consumer durables loans 56% other 6% ......

Home Credit

Presentation of 3Q 2017 results

27 November 2017

Disclaimer

This presentation has been prepared solely for informational purposes and shall not be considered as an offer to sell or

the solicitation of an offer to buy, subscribe for or otherwise acquire any securities of or obtain lending services from

Home Credit B.V., PPF Group N.V. or any of their affiliates in any jurisdiction and shall not be treated as any investment

advice or recommendation. This presentation is not directed to, or intended for distribution or use, where it is prohibited

by operation of law. The presentation does not take into account, in any way whatsoever, the investment objectives,

financial situation or specific needs of its recipients. This presentation and its contents may not be copied or

disseminated, in part or as a whole, without prior written consent of Home Credit B.V. Information and opinions

presented in this presentation may have been obtained or derived from various sources which are believed by Home

Credit B.V. to be reliable but such information has not been verified by Home Credit B.V. No representation or warranty

whatsoever, express or implied, is made as to the accuracy, completeness, consistency or the reliability of the

information contained in this document and nothing contained in this presentation is, or should be relied upon as, a

promise or representation. We accept no liability for loss arising from the use of any information or acting on any

opinion contained in this document. We retain the right to change the contents of this presentation at any time without

notice. The number in this presentation are largely taken from the audited consolidated IFRS statements of Home

Credit B.V. In the interest of comparability historic numbers for Vietnam are pro-forma and certain numbers in respect of

Indonesia are also pro-forma.

For more information on Home Credit Group, please visit www.homecredit.net.

Home Credit – consumer finance leader

in growth marketsHighlights Key metrics and business mix (€)

• HC has experienced high growth rates in its key regions:

− China and Vietnam: fast-growing and profitable markets with the

new volume growing by 127% and 59%, respectively

− Other Asian businesses: (Indonesia, India and Philippines) – all

three businesses pursuing a rapid expansion setting themselves

for a good trajectory to break-even

− Russia: fully recovered from crisis, growing again the loan

portfolio and achieving strong profits

− Other: (Czech Republic, Slovakia and Kazakhstan) which are

mature businesses

• Number 1 in point-of-sale lending in most of markets

• Multichannel customer-centric distribution with 399 thousand

distribution points and substantial online presence

• 28.7m customers and 155 thousand employees

• Global footprint covers 10 countries with 3.5bn population

• Leading edge risk management leveraging big data and biometrics

• Strong and diversified funding

Total net loan : €13.9bn

1

China63%Russia

17%

CZ & SK9%

Asia8%

Rest CIS3%

Cash loans37%

Consumer durables

loans56%

Other6%

2015 2016 2016 Q3 2017 Q3

Deposits (bn) 4.9 5.4 5.0 6.3

Gross loans (bn) 6.6 10.7 8.8 15.0

Equity (bn) 1.2 1.5 1.3 1.7

Net income (m) (41.6) 210.2 131.4 231.9

Net interest margin 15.6% 14.0% 14.1% 14.2%

Cost of risk 13.2% 7.6% 8.0% 7.7%

RoAE (3.3%) 16.2% 14.1% 19.5%

# of distribution points (000) 186 271 241 399

# of active customers (m) 12.5 20.1 16.8 28.7

Ratios annualized where applicable.

Meeting Agenda

1. STRATEGY AND BUSINESS

2. SUMMARY BY COUNTRY

3. KEY FINANCIAL INDICATORS

Customer-centric

multichannel

distribution

with strong cross-sell

Responsible lending

at the heart

of our practices

Leading positions

in attractive

markets

Strong and

diversified

funding

Leading edge

risk management

Home Credit: business highlights

1

2

34

5

2

Customer-centric multichannel distribution

with strong cross-sell

Acquisition: POS and cash loan walk-in Cross-sell

1

Distribution

• 399 thousand distribution points (POS, branches)

• 300 e-shop agreements

• Own websites and mobile apps

• Call centres

Products

Consumer

durables loan

Cash loan

PurposeElectronics, white

goods, Two wheelers

General purpose

Average

amount€322 €572

Average term 11 months 16 months

Volumes

disbursed

(€bn)

Distribution

• Existing 90m customer database

• Up to 66% of customers eligible for cross-sell within 18

months

• From 16% to 20% of customers take either cash loan

or credit card within 36 months.

Products

Cash loan Credit cards

Purpose General purpose General purpose

Average amount €1,942 €1,105*

Average term 33 months NA

Volumes

disbursed

(€bn)

3

1,73,1

6,3

2,44,5

2015 2016 2017

3Q Full year

*Average credit limit per active credit card

2,44,2

8,1

3,8

6,5

2015 2016 2017

3Q Full year

77 99 103 93 94 10119

24 38 63141

244

1416

18 19

16

13

26

7 11

19

40

112145

166186

271

399

2012 2013 2014 2015 2016 2017 Q3

Russia China Other(1) Asia

Expanding offline footprint and customer

base...

Home Credit helps retailers increase their sales and revenues by making loans easily accessible

Home Credit also works with electronics manufacturers (Samsung, OPPO, Huawei, etc.) to

support their marketing efforts

Cooperation with

partners

Number of POS (‘000)

Active

clients (m)6.8 8.4 9.1 12.5 20.1

1

1 Other includes Czech Republic, Slovakia, Belarus, Kazakhstan 4

28.7

…and growing in OnlineGrowth in Sales Growth in Mobile applications penetration

5

11

Social Media followers : 4,963,056

GDP growth 3.3%

Net loans (€m) 228GDP growth (0.2)%

Net loans (€m) 2,377

GDP growth 0.2%

Net loans (€m) 392

Leading positions in attractive markets2

Established

High

growth

markets

Mature

markets

Start-up

high growth

market

Vietnam

11

China

1

Czech Republic

2

Slovakia

1

Russia

2

Kazakhstan

GDP growth 6.2%


GDP growth 6.7%

Net loans (€m) 8,698

GDP growth 2.5%


Indonesia*India

2 new

United States of AmericaThe Philippines

1GDP growth 6.8%


GDP growth 5.0%


Strategic

partnership

with Sprint

regarding

financing

services for

mobile phones

GDP growth 7.0%


Note: Net loans for 2017 Q3 and real GDP growth for 2016

Source for GDP: BMI Research 6*Included portfolio which is not on HC books and is financed

within JFS

1

Leading edge risk management

• Highly automated process: 5.5m applications per month

• Paperless applications roll-out progressing

• Systematic leverage of big data

• Proprietary customer database: 90m customers

• Anti-fraud prevention using biometric measures

• Over 80 scoring models

• 22 thousand collections FTE’s; 93.3% collections efficiency(1)

• Customer focused risk assessment: median time to yes is less than

1 minute

• Risk based pricing introduced progressively

Key aspects of risk management Strong risk performance

1 (1 – (Gross loans DPD 0-90 in previous month / Gross loans DPD 31-120 in current month))

2 Impairment losses / Average net loans

3 End of period gross loans >90dpd / Total end of period gross loans

NPL

coverage

3

7

128%116%106%117%

16,7%17,8%

13,2%

7,6% 7,7%

12,2%

15,3%

10,0%

6,1% 6,2%

2013 2014 2015 2016 2017 Q3

Cost of risk (2) NPL ratio (3)

120%

Diversified funding Interest rate gap profile (€m)

Strong and diversified funding

Diversified funding

Total: €19.5 bn

Funding sources (as of 30 September 2017)

8

4

Interest position (as of 30 September 2017)

Customer deposits

33%

Loans received

48%

Debt securities

5%

Subordinated liabilities

2%

Other4%

Equity9%

763

3 337 4 0733 864

5 385

4 113

2 269

1 187595 706

0

-3 398 -3 580-2 039

-5 458

-2 502

-1 378

-298 -312-641

Liabilities

Assets

Gap

Responsible lending at the heart of our practice5

Our principles

• Home Credit prides itself on being a responsible lender and an active participant in the communities in which it operates.

• We practice in Financial Inclusiveness. Traditional lenders often do not adequately cater to the needs of those on lower incomes or

first-time borrowers. The need for a developed credit history and collateralization are common barriers for individuals who would benefit

from using formal financial services. This exclusion can have a detrimental effect on their financial and personal well-being, and hinders

economic and social development.

• We invest in financial Literacy. Educating our customers and the communities in which we operate is the foundation of our sustainability

programme.

• To help ensure customers make the right borrowing decisions based on their own circumstances, we have introduced a cooling-off

period as standard across all our operations.

• Our Safety Guarantee provides options for struggling clients to offer them additional time for repayment, payment holidays, late penalty

waivers etc.

9

Meeting Agenda




8471 078

1 334

2014 2015 2016

2 219

5 3136 506

7 7358 698

2015 2016 2017Q1

2017H1

2017Q3

128

196

122 118

2015 2016 2016Q3

2017Q3

China

Key financial data (€m) Active clients (000’)

Number of POS Market opportunity (consumer lending) (€bn)(1)

Net loans Net profit (YTD)

% of GDP 12.7%11.1%9.4%

1 Euromonitor 10

5 002

10 62113 189

15 866 16 864

2015 2016 2017 Q1 2017 1H 2017 Q3

63 391

141 315178 321

225 413 244 466

2015 2016 2017 Q1 2017 H1 2017 Q3

POS market position strengthening thanks to product offering and relationship with retailers.

Massive expansion of POS distribution network

#1 in

POS

1822 26

2014 2015 2016

1 129

1 769 1 907 1 829 1 827

2015 2016 2017 Q1 2017 H1 2017 Q3

26

46

33

52

2015 2016 2016Q3

2017H3

249

430464 474

516

2015 2016 2017Q1

2017H1

2017Q3

Vietnam



#1 in

POS

% of GDP 13.6%12.7%11.2%

1 Euromonitor 12

4 9556 834 7 376 8 030 8 687

2015 2016 2017 Q1 2017 H1 2017 Q3


Volumes increasing rapidly through a growing portfolio of products

Business benefiting from its prominent position with key retailers

1 9572 326 2 405 2 269 2 377

2015 2016 2017Q1

2017H1

2017Q3

Russia



#1 in

POS

% of GDP 6.3%6.7%8.1%

1 The Central Bank of the Russian Federation 13

(146)

6737

130

2015 2016 2016Q3

2017H3

3 723

3 268 3 308

3 1853 272

2015 2016 2017 Q1 2017 H1 2017 Q3

92 980 93 996 94 03897 131

100 909

2015 2016 2017 Q1 2017 H1 2017 Q3

na

91 88

2014 2015 2016


Improvement of macroeconomic environment easing pressures on retail lending

Digitalization of the business contribute to higher efficiency and higher profitability

260

334 357 363392

2015 2016 2017Q1

2017H1

2017Q3

34

46

30

46

2015 2016 2016Q3

2017Q3

Kazakhstan



#1 in

POS

% of GDP 5.6%6.4%6.5%

1 National Bank of Kazakhstan 14

677

817 855 881978

2015 2016 2017 Q1 2017 H1 2017 Q3

6 1247 934 8 161 8 753 8 431

2015 2016 2017 Q1 2017 H1 2017 Q3

7,67,7

7,5

2014 2015 2016


Fast growth both in volumes and in profitability on the backdrop of macroeconomic stabilization

Company improving it market shares considerably

682771 783

831903

2015 2016 2017Q1

2017H1

2017Q3

23

33

2622

2015 2016 2016Q3

2017H3

Czech Republic



#1 in

POS

% of GDP 4.8%4.7%4.6%

1 Czech National Bank 15

751

819830 833

844

2015 2016 2017 Q1 2017 H1 2017 Q3

6 0294 951

3 604 3 492 3 320

2015 2016 2017 Q1 2017 H1 2017 Q3

7,27,8

8,2

2014 2015 2016


Profitability improvements both in Home Credit and Air Bank businesses

India



#2 in

POS

% of GDP 7.1%6.2%5.8%

1 Euromonitor 16

71

195241

282

364

2015 2016 2017Q1

2017H1

2017Q3

(26)

(61)

(39)

(54)

2015 2016 2016Q3

2017Q3

490

1 351

1 8042 111

2 579

2015 2016 2017 Q1 2017 H1 2017 Q3

3 2895 789

8 29810 739

18 940

2015 2016 2017 Q1 2017 H1 2017 Q3

109 125 145

2014 2015 2016


Almost doubling its distribution network in the last six months

On-going effort to optimize distribution mode for POS loans while growing volumes

Market opportunity (consumer lending) (€bn)(1)Number of POS

Indonesia


#1 in

POS

% of GDP 10.3%10.5%10.7%

1 Euromonitor 17

25

87112

145

173

2015 2016 2017Q1

2017H1

2017Q3

(15)(19)

(15) (15)

2015 2016 2016Q3

2017Q3

169

508637

831

996

2015 2016 2017 Q1 2017 H1 2017 Q3

1 710

4 4235 478

7 193

9 229

2015 2016 2017 Q1 2017 H1 2017 Q3

7986 91

2014 2015 2016

Net loans* Net profit (YTD)

Achieving no.1 position in a competitive market

*Included portfolio which is not on HC books and is financed within JFS

The Philippines



#1 in

POS

% of GDP 7.7%7.4%7.0%

1 Euromonitor 18

14

6882

108

142

2015 2016 2017Q1

2017H1

2017Q3

(14)(16)

(12)

(5)

2015 2016 2016Q3

2017 Q3

119

520642

778

1 016

2015 2016 2017 Q1 2017 H1 2017 Q3

840

1 9512 302

2 8443 511

2015 2016 2017 Q1 2017 H1 2017 Q3

16 19 21

2014 2015 2016


Continuous geographical expansion accompanied by high growth of business

Company on a good trajectory to reach break-even

Meeting Agenda




1 6192 000

1 397

2 187

2015 2016 2016 Q3 2017 Q3

Strong loan growth (€bn) (1) Resilient revenue (€m) (2)

Strong financial performance

Recovering profitability

14.0%15.6%

19

Recovering profitability (€m)Cost of risk

16.2%(3.3)%RoAE

NIM

13,2%

7,6% 8,0% 7,7%

2015 2016 2016 Q3 2017 Q3

5,8

9,98,0

13,9

2015 2016 2016 Q3 2017 Q3

Growing the size of business while preserving operating margins

Impairment charges slightly up vs end 2016 due to high proportion of new customers from Asian markets

14.1% 14.2%

19.5%14.1%

-42

210 131 232

2015 2016 2016 Q3 2017 Q3

1 Net loans

2 Operating income

Profit & Loss:

Continuous improvement in profitability

20

(€m, ratios annualized where applicable) 2015 2016 2016 Q3 2017 Q3

Net interest income 1,207 1,532 1,068 1,690

Net fee income 304 418 299 454

Other operating income 108 50 30 43

Operating income 1,619 2,000 1,397 2,187

Operating expenses (887) (1,115) (789) (1,157)

Impairment losses (725) (563) (407) (688)

Profit before tax 9 325 202 342

Income tax expense (50) (115) (71) (110)

Profit from continuing operations (42) 210 131 232

Attributable to equity holders (40) 213 133 234

Key performance indicators

NIM 15.6% 14.0% 14.1% 14.2%

CIR 54.8% 55.7% 56.5% 52.9%

CoR 13.2% 7.6% 8.0% 7.7%

ROAE (3.3%) 16.2% 14.1% 19.5%

Balance sheet:

Strong capital and asset quality

21

(€m)

Assets 2015 2016 2016 Q3 2017 Q3

Cash and cash equivalents 1,343 2,412 2,041 2,815

Financial assets 1,501 1,252 1,301 1,234

Due from banks 391 397 337 625

Net loans 5,835 9,866 8,028 13,888

Other assets 586 777 688 928

Total assets 9,656 14,704 12,396 19,490

Liabilities

Customer deposits 4,909 5,401 5,002 6,341

Due to banks 2,331 6,427 4,820 9,376

Debt securities 373 320 250 939

Subordinated liabilities 428 416 405 400

Other liabilities 419 639 582 698

Total liabilities 8,460 13,202 11,059 17,754

Total equity 1,196 1,501 1,337 1,736

NPL ratio 10.0% 6.1% 7.1% 6.2%

NPL coverage ratio 116% 128% 123.5% 120.4%

Appendix

A team of recognized leaders in their fields, committed to high standards of corporate governance

Home Credit’s management team

Jiri Smejc

CEO

Tomas Kocka

Deputy CEO

Jean-Pascal

Duvieusart

Funding & Capital

Markets

Mel Carvill

CGIRO

Pavel Vyhnalek

Regional Executive

Director

Pavel Rozehnal

CLO

Radek Pluhar

CRO

Khalid Husseini

CIO

Christoph

Glaser

CFO

Tomas Jirgl

Regional Executive

Director

David Minol

Regional Executive

Director

Miroslav Boublik

Head of Special

Projects

Petr Janák

CHRO

Ludek Mraz

Head of CRM

Key financial results *

Ownership

Key investments

Strong and diversified parent company

• Total assets: €34.8bn

• Equity: €6.9bn

• Net profit: €1.2bn

Petr

Kellner

98.92%

Ladislav

Bartoníček

0.54%

Jean-Pascal

Duvieusart

0.54%

Diverse business activities encompassing banking and financial services, telecommunications,

biotechnology, insurance, real estate, and agriculture

Strong cash flow generation capacity to support further investment in high growth businesses

Listed Value

€2.6bn (market value of PPF’s

81.06% share)

€0.7bn (book value)



€0.54bn (market value of PPF’s

12.92% share)

Bio technology investment

* Total assets and Equity as of 30 June 2017, Net profit for 12 months period ended 30 June 2017

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