COMPANY PRESENTATION A P R I L 2 0 2 0 Finclusion Pte Ltd | 1 www.finclusiongroup.com INTRODUCTION Luxembourg Finance Awards Winner 2018 Finclusion Pte Ltd | 2 www.finclusiongroup.com INTRODUCING FINCLUSION GROUP FINCLUSION HIGHLIGHTS Our vision is creating and supporting the development of financial inclusion ecosystems in developing 240k clients markets in Africa Our portfolio companies have serviced 240k clients in Africa since inception Our mission is to enhance financial inclusion in African markets through the delivery of technology- enabled financial services through investing in special situations and implementing methodical 1.2m loans turnarounds underpinned by talent, capital and technology Over 1m loans granted in Africa across our portfolio Close to $300mn of disbursements Who? What? Total disbursements of USD290m until 31 December 2019 (of Seasoned team of professionals – Finclusion uses in-house, proven which USD90m payroll, USD200m consumer) all directly involved in portfolio successful, advanced proprietary operations and behind the technology platforms that enhance USD20m Gross Loan Book successful turnaround and the ease, speed and cost efficiency Gross Loan Book of USD20m across the portfolio as of 31 subsequent exit of assets in Africa of delivering financial products to December 2019 the underserved How? USD20m of Assets and USD10m of Equity Full deployment of our The platform technology is further Strong equity capitalization, with balance sheet 50% technology stack and relevant enhanced by back office technology equity financed external technology to optimize like A.I. algorithms for credit granting processes and enhance delivery and fraud prevention, limiting 7.1% Default Rate channels human intervention and error Consistent over an eight-year history of credit across fifteen markets in three continents Implementation of best-practice governance structures appointed Where? Direct employment of 386 experienced non-executives and Finclusion invests in special Consisting of employees and agents, with indirect executives situation opportunities in Africa – employment through impact loans estimated at over 5 Lending only with a clear turnaround opportunity 100,000 operations Immediate streamlining of cost structures, and a reassessment of Currently invested in a portfolio of Invested >20 million in digital platform portfolio mix to correct cashflow five microfinance institutions Technology spin-off from the former MyBucks Group, and operational performance trading since 2011 benefiting from knowledge generated through historic investment in excess of EUR20m Finclusion Pte Ltd | 3 www.finclusiongroup.comwww.finclusion.club OUR STRATEGIC INITIATIVES ENABLED US TO PREPARE FOR COVID-19 Being technology, data and experience led has allowed consumers continued access to our financial solutions Voice Contracting Where customers have relied on traditional application processes and face-to-face service, implemented simple and easy to understand voice contracting to reduce time spent on the application processes, reducing turn around, resulting in quicker payout to clients requiring emergency funds. Remote Contact centre Adopted AI driven Zailab contact centre and customer care platform that can be accessed from any device with internet access. Allows for real time and accurate reporting as well as improved customer experience. Implementation of API platforms and activation of multiple Microsoft services enable staff across all departments to continue daily operations from home. Voice and video platforms allowed meetings with internal and external stakeholders to continue, as well as the servicing of clients online, telephonically and through other platforms such as social media, WhatsApp and online chats. Adapted lending criteria In efforts to reduce irresponsible borrowing during the Covid pandemic and over indebting consumers, criteria to apply for a personal loan was tightened to deal with the shift in data points available and to make effective credit decisions, including introducing psychometric scores. This mad have reduced the quantity of applications however maintained the quality of clients that upholds credit agreements on a monthly basis. Collection and payment innovation Implemented payment arrangements for customers that have had a loss of income and created innovative alternative payment solutions. To maintain a high collection rate, customers are rewarded for good payment behavior, with monetary vouchers that fulfil a need during difficult times. Finclusion Pte Ltd | 44 www.finclusiongroup.com WHAT WE HAVE BEEN DOING LENDING Building a cohesive eco system to create more financial • Technology driven short term lending inclusion in a time of social distancing • Website and App • Digital wallet for saving, transfers and payments • Customer-centric financial eco-system. • Non traditional credit scoring: customer data, financial history & psychometrics. • Enhancing good payment behaviour through rewards REHABILITATION • Give clients access to their financial data • Provide relieve to those in financial distress • Help customers understand their credit status • Support through financial education • Empower clients to make financially sound decisions INSURANCE • Fully digital and automated platform • Sign up, add/remove beneficiaries and claim online • Innovative claim benefits on the funeral plan product such as grocery and airtime vouchers • Tenant insurance to cover for retrenchment, disability or death • Reduced turnaround time and human interaction Finclusion Pte Ltd | 55 www.finclusiongroup.com WHAT IS THE WORLD LIKE AS WE EMERGE FROM COVID 19 Pivoted the business to include transactional solutions to provide customers a holistic digital eco system. Digitised credit scoring and payment solutions Using artificial intelligence models, customers have access to credit from any smart device, anywhere, anytime, in a safe and regulated environment. Through the GetBucks digital wallet, customers will have the ability to save, transfer funds and make payments instantly at a lower cost to traditional banks. Digital wallet A cashless payment and saving solutions that can accessed through smartphones as well as USSD platforms, empowering people to control their finances and enabling small business to continue operations and grow from wherever they are. Customer care and well-being for the long term Provide thoughtful pay-out options for insurance claims allow a value-added offering that keep customers sustained for a longer term. Give customers pay-out options for grocery and airtime vouchers as a portion of an insurance claim that will keep families going for longer. Finclusion Pte Ltd | 66 www.finclusiongroup.com HOW WE ARE EMPOWERING AFRICANS Pivoted the business to include transactional solutions to provide customers a holistic digital eco system. Access to medical card Empower through technology Through a partnership with Oyi Medical card, Through a partnership with MaraPhones, thousands of people that may not afford medical aid people have access to smart devices that can or medical insurance have access to a medical card to be purchased via an affordable monthly pay for day to day medical expenses, with the option to instalment. apply for credit when needed. The card can only be used at medical outlets, reducing reckless spending. Credit rehabilitation Provide and platform and service to clients Empowering small businesses: that have found themselves in financial Providing a digital platform for small businesses to difficulty. Assist customers with removal of display products, enabling exposure to a larger market judgements, blacklisting and over and safe payment solutions. Product delivery is fulfilled indebtedness by providing a financial solution by a partnership with Drivers Club which works with they can afford. personal transport and taxi services nationally. Funeral Cover Financial education Include the options for customers to obtain Provide the tools and platforms to educate clients on funeral cover for there families that will ease financial basics, enabling them to make better financial financial stress in the case of a loved one. solutions for the future. Funeral cover that is tailored to suit family and financial needs. Educational Loans Offering educational loans at a lower interest rate to those that wish to further their education. Finclusion Pte Ltd | 77 www.finclusiongroup.com OUR CORPORATE STRUCTURE Controlling four regulated banks and six micro-finance institutions across Africa Finclusion Pte Ltd | 8 www.finclusiongroup.com THE OPPORTUNITY Luxembourg Finance Awards Winner 2018 Finclusion Pte Ltd | 9 www.finclusiongroup.com OUR VIEW OF THE MARKET DigitalDigital around around the world the World vs Africa vs Africa- Jan 2020 - Jan 2020 World Africa Total population Internet users Social media users Unique mobile users 7.75 billion 4.54 billion 3.80 billion 5.19 billion 55% 59% 49% 67% Urbanisatoin Penetration Penetration Penetration Mobile connections 1.32 billion 453.2 million 217.5 million 1,08 billion 43% 34% 16% 81% Urbanisatoin Penetration Penetration Penetration Finclusion Pte Ltd | 10 https://datareportal.com/reports/digital-2020-global-digital-overview www.finclusiongroup.com FINANCIAL INCLUSION IN AFRICA Key trends (1/2) Africa is the fastest growing continent in the world and has the best growth prospects: 4,0% 3,0% 3,0% Africa the young 2,0% 2,0% 2,0% 2,0% 2,0% continent The 2nd largest and 2nd Sub-Saharan Africa Latin America & Caribbean European Union United States