Ferratum Oyj - Annual Financial Report

FERRATUM OYJ: Ferratum Group achieves record Q4 performance and strong full year 2016 results in line with guidance

Ferratum Group achieves record Q4 performance and strong full year 2016 results
in line with guidance 

Helsinki, March 7, 2017 - Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS)
("Ferratum" or the "Group") announces strong preliminary unaudited results for
the 12 months ended 31 December 2016 (the "Period"). 



Financial highlights

  -- Record Group revenue for the Period of EUR 154.1 million - up 39%
     year-on-year
  -- Record Q4 2016 revenue of EUR 45.5 million - up 43% year-on-year
  -- Operating profit (EBIT) for the Period of EUR 21.1 million - up 28%
     year-on-year
  -- EBIT margin for the Period of 13.7%
  -- Strong positive operating cash flow of EUR 23.7 million
  -- EPS (basic and diluted) increased 17.6% to EUR 0.60 per share
  -- EUR 20 million Ferratum bond expiring in January 2017 (WKN: A1Z4JU)
     replaced with a new EUR 25 million bond (WKN: A189MG)
  -- Cost of capital reduced significantly to 5.25% in 2016 (2015: 8.02%)

Operational highlights

  -- Gross book value of loan portfolio increased 58% to EUR 247 million
  -- Net book value of loan portfolio (net of risk provisions) grew by 73% to
     EUR 184 million
  -- Portfolio quality further improved: impaired loan coverage ratio reduced to
     25.4% at Period end (2015: 31.5%)
  -- Management actions taken in 3Q 2016 to accelerate growth have been
     effective
  -- Strong recovery of growth in consumer lending driven by new customers and
     demand from existing Microloan customers for bigger and longer term
     products such as Credit Limit and PlusLoans
  -- Ferratum Business (SME) lending, launched in Q2 2015, contributed EUR 4.3
     million to Ferratums revenues over the Period
  -- Ferratum Mobile Bank launched in Germany, Norway and Sweden
  -- Deposit volume at the Period end over EUR 100 million, exceeding Ferratum's
     expectations
  -- Active/former customers increased 27% to 1.6 million
  -- New customers during the Period increased 21% to 330,145 (2015: 272,787)


                                   3 months ended   12 months ended
                                    31 December       31 December  
Key Figures, EUR '000               2016    2015    2016     2015  
Revenue                            45,483  31,829  154,128  111,008
Operating profit (EBIT)             6,911   4,266   21,142   16,478
Profit before tax                   5,272   3,024   14,728   12,419
Profit before tax %                 11.6%    9.5%     9.6%    11.2%
Earnings per share, basic (EUR)      0.21    0.13     0.60     0.51
Earnings per share, diluted (EUR)    0.21    0.12     0.60     0.51



CEO and Founder Jorma Jokela commented: "2016 has been another year of strong,
profitable growth for Ferratum, during which we took decisive steps to restore
the momentum of revenue growth and profitability to deliver full year results
in line with our guidance. Our actions in Q3 to reorganize our management
structures, invest in more scalable IT architecture and systems and focus on
core business growth delivered a record performance over the last quarter -
both in terms of absolute revenue growth and profitability - and current
trading gives us confidence that this momentum is continuing into 2017." 

Strategic Developments

2016 has been a significant year in Ferratum's journey to become a leading
international mobile bank, marked by the launch of our app-based Mobile Bank in
three markets: Germany, Norway and Sweden. Since launch, demand in these
markets has exceeded our expectations, attracting over EUR 100 million in total
deposits. This positive development provides Ferratum with a very strong
liquidity position of EUR 73 million at the year-end 2016 and is a solid base
for further growth in 2017. 

We expect to build on this momentum by launching the Mobile Bank in several
more countries over the year ahead, as well as rolling out Credit Limit,
PlusLoans and Ferratum Business (SME) lending in additional countries during
2017. 

In the final quarter of 2016, Ferratum Bank Plc successfully refinanced a EUR
20 million bond expiring in January 2017 with a EUR 25 million senior unsecured
bond maturing in March 2020. The additional capital raised further supports the
Group's strong financial position and ability to enhance and expand Ferratum's
offering to the Group's customers. 

As of March 1, 2017, the two bonds issued by Ferratum Capital Germany GmbH -
Ferratum Capital Germany GmbH 8% 2018 (WKN: A1X3VZ) and Ferratum Capital
Germany 4.875% 2019 (WKN: A2AAR2) - have commenced trading on Scale, Deutsche
Börse's new market segment for small and medium-sized enterprises. 

2017 Outlook

The Board of Directors of Ferratum Oyj reconfirms that revenues for the fiscal
year 2017 are expected to range between EUR 200 million and EUR 225 million.
The operating profitability margin (EBIT margin) is expected to range between
13% and 16%. 

Ferratum Oyj bases this guidance on certain assumptions, including:

  -- Consumer credit volumes continue to grow, exceeding the market average,
     based on new customers, continued diversification of consumer lending
     products and growth in new markets.
  -- Ferratum Business (SME) lending continues to gain market share in the 5
     existing markets. Ferratum plans to introduce the product in additional
     markets during 2017.
  -- The Ferratum Mobile Bank is rolled out in additional countries and
     generates new customers, retains customer loyalty, stimulates cross
     selling, increases deposit volume and diversifies deposit currencies.
  -- There are no material negative changes in the consumer and business credit
     markets of relevance to Ferratum.
  -- Stable capital market conditions.
  -- There are no unexpected significant new regulatory challenges or changes.


About Ferratum Group:

Ferratum is an international provider of consumer and small business loans,
distributed and managed by mobile devices.  Founded in 2005 and headquartered
in Helsinki, Finland, Ferratum is a pioneer in the fields of financial
technology and mobile lending and has expanded rapidly to operate in 23
countries. Ferratum's customers utilize digital media to apply for consumer
credit in amounts varying between EUR 25 and EUR 5,000 and small businesses
instalment loans up to EUR 100,000 with a term of six to twelve months.  Led by
its founder, Jorma Jokela, Ferratum has more than 1.6 million active and former
customers who have been granted one or more loans in the past (as at 31
December 2016). 

Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange
under symbol 'FRU.' For more information, visit www.ferratumgroup.com. 

Contacts:

Ferratum Group
Dr. Clemens Krause, CFO
T: +49 30 88715308
F: +49 30 88715309
E: clemens.krause@ferratum.com



Ferratum Group                  
Paul Wasastjerna                
Head of Investor Relations      
T: +358 40 7248247              
F: +358 20 741 1614             
E: paul.wasastjerna@ferratum.com




European media enquiries:               
Edelman.ergo, A Daniel J Edelman Company
Alexander Schmidt | Andreas Martin      
T: +49 69 27 13 89 26                   
E: Alexander.Schmidt@edelmanergo.com    
E: Andreas.Martin@edelmanergo.com       



UK media enquiries:
Smithfield, A Daniel J Edelman Company
Alex Simmons | Brett Jacobs
T: +44 20 7903 0669 | +44 20 7903 0675
E: asimmons@smithfieldgroup.com
E: bjacobs@smithfieldgroup.com

Attachments:

Ferratum Oyj - Preliminary Result.PDF