Ferratum Oyj - Annual Financial Report

FERRATUM OYJ : Ferratum Group builds on its growth trend and closes 2015 again at record levels

•	Based on preliminary, unaudited figures, Ferratum increased revenues by
around 57% to EUR 111.0 million 
•	Adjusted operating profit (EBIT) rose by around 44% to EUR 17.0 million;
adjusted EBIT margin at 15.3% 
•	Adjusted earnings before taxes (EBT) was around 68% higher at EUR 12.9
million; adjusted EBT margin increased to 11.6% 

Helsinki/Berlin, February 25, 2016 - Ferratum Oyj (ISIN: FI4000106299, WKN:
A1W9NS), a pioneer in the field of financial technology and international
provider of mobile consumer loans and small corporate loans, was able to
seamlessly build on the positive development in the first nine months of 2015
according to preliminary, unaudited results. By posting a significant increase
in sales, significantly higher EBIT and nearly doubling EBT, Ferratum reached a
new record at the annual level. Consistent implementation of the growth
strategy clearly had a positive impact on the company's development. Key
factors in this context were the market entry into new countries and the
expansion of the product portfolio. 

According to preliminary, unaudited figures for fiscal year 2015, Group
revenues rose significantly by a total of 57.4% to EUR 111.0 million (2014: EUR
70.5 million). The positive revenue performance is due in part to the growing
number of customers. This figure increased to more than 1.2 million customers
in fiscal year 2015 (2014: 1.0 million). Despite increased marketing and
selling expenses of EUR 16.2 million (2014: EUR 9.6 million) to further
accelerate its growth, Ferratum managed to increase its operating profit. Costs
of EUR 1.2 million related to the IPO were incurred in fiscal year 2014. In
fiscal year 2015, the IPO costs still amounted to EUR 0.5 million. Adjusted for
these IPO costs, operating profit (EBIT) increased by 43.9% to EUR 17.0 million
(2014: EUR 11.8 million), which represents an adjusted EBIT margin of 15.3%.
Including the IPO costs, EBIT rose by 55.3% to EUR 16.5 million (2014: EUR 10.6
million). This results in an EBIT margin of 14.8% (2014: 15.1%). The loan
portfolio increased from EUR 61.5 million on December 31, 2014, by 73.5% to EUR
106.8 million on December 31, 2015, in other words by a total of around EUR
45.2 million. Based on the continued conservative risk provision model Ferratum
uses, in which the expected payment defaults are already booked in the
disbursement of a new loan, risk provisions in the lending business increased
by 70.3% in fiscal year 2015 to EUR 34.7 million. Dr. Clemens Krause, CFO of
Ferratum Group, commented as follows: "The full risk provision has already been
posted on loans whose returns will only be posted over the duration of the
loan. Particularly with the high-growth products PlusLoans and Credit Limit,
there is a clearly marked time lag between the immediate booking of risk
provision and the income posted later on." The positive development of Ferratum
is therefore accompanied by a positive trend in the payment behavior of
customers and a continually optimized risk management system. Adjusted earnings
before taxes (EBT) rose by 67.5% in the reporting period to EUR 12.9 million
(2014: EUR 7.7 million), which corresponds to an adjusted EBT margin of 11.6%.
Including the IPO expenses, EBT rose by 90.2% to EUR 12.4 million (2014: EUR
6.5 million). This results in an EBT margin of 11.2% (2014: 9.3%). As a result,
net income adjusted for IPO expenses of EUR 6.8 million last year was increased
to EUR 11.4 million in fiscal year 2015. Including the IPO costs, this means an
increase of 94.5% from EUR 5.6 million in fiscal year 2014 to EUR 10.9 million
in the reporting period. 

Jorma Jokela, CEO and founder of Ferratum Group, is pleased with how positively
business has developed: "We can once again announce a record year. The
financial year 2015 is characterized by a significant increase in revenues and
profitability. Our position could not be better in order to achieve the next
milestones of our strategy in the dynamically developing Fintech environment.
The course is set for growth." 

Ferratum Group thus achieved its goals in fiscal year 2015 and set crucial
impulses for further growth in the first quarter of 2016: With market entries
in Norway, Canada, France and Mexico, Ferratum has started operations in four
markets in fiscal year 2015 and therefore created the prerequisites to further
expand the loan business with private customers and benefit from economies of
scale. Overall, Ferratum is now operationally active in 23 countries.
Geographic expansion is an important part of its growth strategy, which
provides for expansion of its activities to 30 countries in the medium term. 

Besides geographic expansion, the expansion of the product portfolio is also a
critical success factor. The two products PlusLoans and Credit Limit enable
customers to receive a larger loan amount for a longer period of time compared
to classic microcredits. This makes it possible for Ferratum to increase its
revenue per customer. These two products will be gradually introduced into
existing markets. For example, Ferratum introduced the product PlusLoans in a
total of two new countries in fiscal year 2015, which means the product is now
available in eleven countries. Ferratum also managed to introduce the product
Credit Limit in two new countries in fiscal year 2015. This offer was then
introduced in Poland in the first quarter of 2016; currently customers in seven
countries can choose Credit Limit. 

Furthermore, Ferratum started business with small business loans in the
reporting period. The company already established the "Ferratum Business"
division in 2015 in the three countries Sweden, Finland and Lithuania. The
market entry into Denmark followed in February 2016. 

In the course of the further expansion of Ferratum Bank plc, a subsidiary and
licensed credit institution with an EU banking licence, also the loan business
in Spain was taken over by the bank in early 2016. Dr. Clemens Krause explains:
"We make a distinction within Group Ferratum between two spheres. We assign all
transactions that run under the EU banking licence of Ferratum Bank plc to the
first sphere. These include in particular the European countries where a
banking licence is a prerequisite for the lending business. Under the second
sphere, we include the credit business outside Ferratum Bank plc and thus
without the EU banking licence. This is particularly the case in all countries
outside the EU and in some European countries where Ferratum has been in
operation already for many years, such as the home market of Finland." 

The introduction of the Mobile Bank in select European countries was prepared
with the pilot project in Sweden in fiscal year 2015. The deposit products of
Ferratum Group have also been available for German customers since January 2016
under www.ferratumbank.de. As part of the European expansion of the Mobile
Bank, this is now to be introduced in Germany and then in other European
countries in the first half of 2016. Jorma Jokela: "The introduction of the
Mobile Bank in the European market is the most important strategic goal for
2016. We have meticulously developed this innovative platform in recent months
and are confident that our platform can revolutionize the private banking
business. But even here, we will proceed according to our proven principle -
Sound Growth. For this reason, we will carefully explore each market before we
decide to enter it." 

About Ferratum Group:

The Finnish Ferratum Group, a pioneer for mobile consumer loans in Europe,
offers short-term consumer loans for private persons. Ferratum's customers can
utilize digital media to apply for consumer credit in amounts varying between
EUR 25 and EUR 3,000. Moreover, Ferratum offers successful small businesses
installment loans with a term of six to twelve months. Managed by its founder
Jorma Jokela, Ferratum has expanded rapidly since it was founded in 2005:
Ferratum has more than 1.2 million active and former customers who have been
granted one or more loans in the past and 3.7 million total user accounts in
its database (as of 31 December 2015; preliminary figures). Ferratum is
represented in 23 markets. 


Contacts:

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

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

cometis AG
Henryk Deter | Mariana Kuhn
T: +49 611 20 58 55-61
F: +49 611 20 58 55-66
M: kuhn@cometis.de

Attachments:

Ferratum Oyj Preliminary, unaudited figures 2015.pdf