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Earnings Release4Q 2018

Contact:

+52-(55)-5292-7511

[email protected]

www.alphacredit.mx

Private and Confidential

Do not copy or distribute

Company Overview

Description

AlphaCredit is one of the fastest-growing financial technology companies in Latin America that offers (a) consumer loans through

(i) Payroll Deduction Loans (“PDL”) and (ii) Electronic Debit Loans (“EDL”) and (b) financing solutions to small and medium size

companies (“SMEs”)

AlphaCredit’s business lines

AlphaCredit’s consumer lending geographical

footprint is managed through:

• +215 branches in Mexico and +37 branches in

Colombia

• +2,800 sales force agents in Mexico and +1,320

in Colombia

Headquarters

AlphaCredit’s SME lending provides two major

financial solutions to SMEs:

• operating and financial leases, and

• A/R financing (direct factoring) and supply

chain financing (reverse factoring)

• Working capital loans

Gross portfolio evolution (MXN$ mm)

Consumer loans

93.6%

SMEs loans

6.4%

2.6%Factoring loans

2.2%Leasing loans

77.0%PDL - Mexico

11.9%PDL - Colombia

4.7%EDL loans

1.7%Other loans1

1,694

4,676

6,0836,481

7,313

8,174

8,733

2015 2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

Source: Alpha Holding’s non-audited financial information as of December 2018

Note: Total Portfolio considers Leasing portfolio included as PP&E in the Company’s Balance Sheet since 2017

2

MEX

COL



AlphaCredit timeline

AlphaCredit stand-alone total cumulative disbursed portfolio (MXN$ mm)

Source: Alpha Holding’s non-audited financial information as of December 2018 1 Considers Leasing portfolio included as PP&E in the Company’s Balance Sheet

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18

AlphaCredit disburses

its first PDL loan

AlphaCredit has raised more than US$1.1 bn in

funding with local and international investors,

financial institutions and the public markets

Interest Income

Gross Loans 1

Total Assets

Book Value

2015 – 2018 CAGR

71.2%

72.7%

57.4%

25.4%

AlphaCredit’s expansion

to Colombia

Acquisition of:

Acquisition of:

AlphaCredit introduces

Electronic Debit Loans

AlphaCredit begins Factoring

& Leasing operations

Acquisition of:

Alpha Holding issues

US$300 mm International bond due 2022

AlphaCredit issues MXN$1,800 mm on-asset

securitization in the

Mexican Stock Exchange (BMV)

Origination 2.0 pilot program

AXS Fintech App launch

3



4

Portfolio breakdown as of December 2018

4Q18 (MXN mm) Consumer MexicoConsumer

ColombiaFactoring & Leasing Total

Key financial figures:

Total Income 806 74 38 918

NIM1 45.5%² 47.8%² 74.7%² 46.9%²

PDL Mexico EDL PDL Colombia Factoring Leasing

Interest rate 43.1% 75.2% 26.2% 19.5% 22.0% 41.5%

NPL % ratio by product 2.8% 11.8% 2.3% 1.1% 0.0% 3.0%

Portfolio breakdown:

% of Interest income 4Q183 76.0% 7.6% 8.6% 1.5% 3.4% -

% of Origination 4Q18 44.1% 9.3% 28.5% 17.0% 1.2% -

% of Total Portfolio 4Q183 77.0% 4.7% 11.9% 2.6% 2.2% -

Source: Alpha Holding’s non-audited financial information as of December 2018 1 Financial margin divided by Interest income plus fee income; 2 Adjusted by negative carry attributable to financial expense from excess cash; 3 Does not consider Structured loans and Working capital

loans to AC´s main PDLs brokers that use funds to originate PDLs for AC (the Company does not offer these products anymore)



Source: Alpha Holding’s non-audited financial information as of December 2018 1 Federal refers to government agreements with national presence such as PEMEX or IMSS

5

Portfolio breakdown as of December 2018 (cont’d)

Consumer Loans portfolio evolution (MXN$ mm)


Portfolio evolution:

PDL Mexico

4,192 4,967

6,720

2016 2017 2018

62%16%

15%

6% 1%

Federal ¹

Education

Health

Government

Others

41.9%

43.8%

43.1%

2016 2017 2018

Interest Income Rate APR Interest Income Rate

PDL Colombia

119

476

1,041

2016 2017 2018

62%12%

11%

15%

Pensioners

Education

Government

Others

29.4%

30.4%

29.6%

2016 2017 2018

EDL Mexico

99

232

410

2016 2017 2018

61.1% 61.0%

75.2%

2016 2017 2018

64%

36%Pensioners

Retirees



6

Portfolio breakdown as of December 2018 (cont’d)

SMEs Loan portfolio evolution (MXN$ mm)

LeasingFactoring

13

224 231 242

305

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

343

3

64

102

158180 188

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

69%

31%AR Factoring

Supply Chain Factoring

APR APR

31.1%

32.0%

33.5%

2016 2017 2018

48%36%

10%

6%

M&E

Transportation

IT

Furniture

Portfolio evolution¹:


Source: Alpha Holding’s non-audited financial information as of December 2018 1 Considers Factoring committed lines

27.0% 27.2%

30.3%

2016 2017 2018



Gross Portfolio (MXN$ mm) NPLs Ratio (%)

Interest Income (MXN$ mm) Net Income (MXN$ mm)

Financial highlights

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

Others¹

F&L

EDL

PDL-Col

PDL-Mx 7,313

6,481

8,174

8,733

4,676

6,083

853

1,849

2,628

522716

2016 2017 2018 4Q'17 4Q'18

Others¹

F&L

EDL

PDL Col

PDL Mx

33

Average Interest Income Rate (%)

26.8% 34.3% 35.5% 35.0% 33.9%

53

115

145

448

15

113

2016 2017 2018 2018 adj 4Q'17 4Q'18 adj

Source: Alpha Holding’s non-audited financial information as of December 2018 1 Includes Structured loans and Working capital loans to AC´s main PDLs brokers that use funds to originate PDLs for AC (the Company does not offer these products anymore); 2 Calculated as annualized

Interest Income divided by average Portfolio; ³ Adjusted by negative carry attributable to financial expense from excess cash

7

3.7% 3.7%

3.1% 2.9%3.3%

3.0%

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

2

33



Credit highlights

43.1%

37.9% 35.2%

31.1%

26.0% 25.9%

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

Capitalization Ratio¹

OPEX as % of Total Income

39.8%36.8%

29.1%

34.8%

26.0%

2016 2017 2018 4Q'17 4Q'18

82.7% 82.2% 54.0% 103.0% 54.6%

Efficiency Ratio4

Net Financial Leverage2

2.8x3.1x

3.5x

4.0x

4.5x

5.0x

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

ROAA6

0.7% 0.9% 0.9%

2.7%

0.4%

2.6%

2016 2017 2018 2018 adj 4Q'17 4Q'18adj

Coverage Ratio3

128.9%120.7%

106.9%113.2% 114.6%

122.2%

2016 2017 1Q'18 2Q'18 3Q'18 4Q'18

ROAE7

3.4% 5.3%

6.3%

19.6%

2.7%

20.6%

2016 2017 2018 2018 adj 4Q'17 4Q'18adj

Source: Alpha Holding’s non-audited financial information as of December 20181 Calculated as Total Shareholders’ Equity divided by Gross Loan Portfolio; 2 Calculated as Net Debt divided by Total Shareholders’ Equity; 3 Calculated as Allowance for Loan Losses divided by Non-

Performing Loans; 4 Calculated as Operating Expenses for the period divided by the adjusted Financial Margin of the period; 5 Adjusted by negative carry attributable to financial expense from excess

cash; 6 Calculated as YTD Net Income divided by average Total Assets; 7 Calculated as YTD Net Income divided by average Shareholders’ Equity

5 5

8

5 5

5 5



Total Debt – Maturity Profile

Type of Debt Fixed rate vs. Floating rateSecured vs. Unsecured

44.6%

23.9%

13.6%

14.6%

3.2%

International

Notes

Bank Credit

Lines

Asset

Securitization

International

Funds

OthersTotal = MXN$13,204 mm1

55.7% 44.3%

Unsecured

Secured 86.4%

13.6% Fixed Rate

Floating

Rate

1,090 1,366 1,556

9,192

2019 2020 2021 2022 - Older

International Notes Bank Credit Lines Asset Securitization International Funds Others

100% of USD denominated debt is hedged via interest rate swaps and floating rate debt is fully hedged with an interest rate cap

Source: Alpha Holding’s non-audited financial information as of December 2018 1 Does not include accrued interest, intercompany loans and capitalized interest; 2 100% of the Company’s Floating Rate is hedged

9

AlphaCredit’s debt profile as of December 2018

70% of principal

amortizations are due in

2022 or later

2



Income Statement

Historical Income Statement

2018 2018 Adjusted 2017

(MXN$ million) 1Q’18 2Q’18 3Q'18 4Q’18 FY2018 4Q’18 FY2018 4Q’17 FY2017

1 Interest income 599 654 659 716 2,628 716 2,628 522 1,849

2 Fee income 68 62 204 202 536 202 536 68 239

3 Interest expense (408) (458) (492) (534) (1,893) (480) (1,460) (369) (1,027)

4 Fee expense (10) (12) (6) (8) (35) (8) (35) (21) (104)

5 Financial margin 249 246 364 376 1,235 430 1,668 200 956

6 Allowance for loan losses (37) (36) (33) (31) (137) (31) (137) (40) (78)

7Financial margin adjusted for credit risks

212 210 332 345 1,098 399 1,530 160 879

8 Administrative expenses (227) (208) (220) (231) (885) (231) (885) (20) (768)

9 Other income, net 16 0 (23) (8) (15) (8) (15) 51 25

10 Income before income taxes 1 2 89 106 198 160 631 5 135

11 Income tax benefit (expense) (1) 0 (27) (32) (59) (48) (189) 1 (37)

12 Non-controlling interest 4 1 0 1 6 1 6 9 18

13 Net Income 4 3 62 75 145 113 448 15 115


10



Income Statement (cont’d)

2018

(MXN$ million) 2015YE 2016YE 2017YE 2018YE 2018YE (Adj.)

1 Interest income 524 853 1,849 2,628 2,628

2 Fee income 135 195 239 536 536

3 Interest expense (251) (448) (1,027) (1,893) (1,460)

4 Fee expense (93) (87) (103) (35) (35)

5 Financial margin 316 514 957 1,235 1,668

6 Allowance for loan losses (35) (107) (78) (137) (137)

7 Financial margin adjusted for credit risks 281 407 880 1,098 1,530

8 Administrative expenses (103) (417) (768) (885) (885)

9 Other income, net 537 12 24 (15) (15)

10 Income before income taxes 715 2 135 198 631

11 Income tax benefit (expense) (49) 29 (37) (59) (189)

12 Non-controlling interest (8) 21 18 6 6

13 Net Income 658 53 115 145 448


Historical Income Statement

11



Balance Sheet

Historical Balance Sheet

2018

(MXN$ million) 2015YE 2016YE 2017YE 1Q’18 2Q’18 3Q’18 4Q’18

1 Cash and cash equivalents 344 507 4,920 3,446 4,201 3,114 1,851

Cash and cash equivalents 1,952 1,135

Reserved Cash 698 404

Cash in-transit 463 311

Performing Loan Portfolio:

2 Consumer Mexico 1,338 4,1251 4,974 5,220 5,886 6,465 6,896

3 Consumer Colombia 0 119 473 539 717 881 1,017

4 Factoring 0 9 156 175 153 196 221

5 Others 320 252 188 247 187 184 148

6 Total Current Portfolio 1,658 4,501 5,792 6,181 6,943 7,726 8,282

7 Non-Performing Loan Portfolio 36 171 228 198 212 269 263

8 Total Portfolio 1,694 4,672 6,020 6,379 7,155 7,994 8,545

9 Allowance for loan losses (46) (221) (275) (211) (239) (308) (321)

10 Net loan portfolio 1,648 4,452 5,745 6,167 6,916 7,686 8,224

11 PP&E Leased 0 3 64 102 158 180 188

12 Contract Agreements 1,971 3,712 3,712 3,712 3,712 3,712 3,712

13 Prepaid Fees 20 107 159 209 244 256 280

14 Other accounts receivables 123 636 1,173 1,353 1,429 1,383 1,517

15 Taxes 110 174 137 128 191 312 163

16 Other Assets 133 429 550 458 657 695 1,088

17 Total assets 4,349 10,019 16,460 15,576 17,508 17,338 17,023

Loans from banks and other entities:

18 Short-term Debt 203 1,982 1,518 1,692 1,868 1,393 1,397

19 Long-term Debt 1,729 4,178 10,768 9,657 11,354 11,327 11,866

20 Other Account Payables 438 629 823 737 959 1,058 323

21 Total Taxes 745 1,160 943 931 959 1,145 1,112

22 Other liabilities 86 55 98 281 92 286 63

23 Total liabilities 3,201 8,004 14,150 13,296 15,232 15,209 14,761

24 Total shareholders’ equity 1,148 2,015 2,310 2,280 2,276 2,129 2,262

25 Total liabilities and shareholders’ equity 4,349 10,019 16,460 15,576 17,508 17,338 17,023


12



Appendix

13



14

Cash reconciliation

(MXN$ million) 3Q18

1 Cash and cash equivalents 1,952

2 Reserved Cash 698

3 Cash in-transit 463

4 Total cash for the period 3,114

(MXN$ million) 4Q18

1 Cash and cash equivalents 1,134

2 Reserved Cash 404

3 Cash in-transit 311

4 Total cash for the period 1,851

Cash and Cash Equivalents Cash available for new loan origination

Provisions Cash provisioned for debt repayment ( e.g. Interest payment to bondholders) and collateral

Working capital Cash in-transit in our collection master trust

Cash consolidation reconciliation



Understanding our Balance Sheet: Contract Agreements overview

Contract Agreements overview

PDL Mexico origination YTD 2018: 2,285 MXN$mm

Existing contract agreements

Consolidated sales force platform

Description◼ Contract agreements with government entities enable

AlphaCredit to originate and collect payroll deduction loans with such government entities’ employees

Key characteristics

◼ Origination is targeted to government employees

◼ Government entities deduct principal and interest amortizations from our loans directly from the Borrowers paycheck and remit it to us

◼ Amortizations are paid regardless of the status of the government agreement

Creation and renewal of withholding Agreements

◼ Opening a new contract agreement takes a long time, and even more to fully penetrate the employee base

◼ Term of the contracts varies among the agreements

Contract agreements

owned

◼ AlphaCredit has a total of 369 contract agreements

◼ Existing contracts allow AlphaCredit to reach approximately 4.5 million government employees

108 C.A. acquired 157 C.A. acquiredTotal 369 contract

agreements

Consolidated

Mobile units

◼ Used to gain access to remote areas

◼ 7 sales persons

◼ Avg. origination of Ps$750k/month

◼ +22 operational units in Mexico

Main branch / Core branch

◼ Located in capital cities

◼ Complete staff

◼ Min. origination of Ps$1.5-2mm/month

◼ +92 branches in Mexico

◼ Located in smaller towns

◼ Reduced staff

◼ Min. origination of Ps$750k-1mm/month

◼ +12 branches in Mexico

Modular branch

Nodes

◼ Used for making an assessment before placing a Modular or Core branch

◼ One sales person

◼ Min. origination of Ps$350k/month

◼ +85 Nodes in Mexico

CAGR ‘15-’18: 70.11%

463

1,151

1,929

2,285

2015 2016 2017 2018

Total Credit acquisition

(December 2015)

Finmart acquisition in

(September 2016)

15



Disclaimer

The material that follows is a confidential presentation of general background information about Alpha Holding, S.A. de C.V.

(“AlphaCredit”, “AC” or “the Company”), and its subsidiaries as of the date of the presentation. It has been prepared solely for

informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be

treated as giving investment advice to potential investors. The information contained herein is in summary form and does not

purport to be complete. No representations or warranties, express or implied, are made concerning, and no reliance should be

placed on, the accuracy, fairness, or completeness of this information. Neither AlphaCredit nor any of its affiliates accepts any

responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The

information presented or contained in this presentation is current as of the date hereof and is subject to change without notice

and its accuracy is not guaranteed. Neither AlphaCredit nor any of its affiliates make any undertaking to update any such

information subsequent to the date hereof.

This confidential presentation contains forward-looking statements and both operating and financial figures relating to

AlphaCredit that reflect the current views and/or expectations of AlphaCredit and its management with respect to its

performance, business and future events. Forward-looking statements include, without limitation, any statement that may predict,

forecast, indicate or imply future results, performance or achievements, and may contain words like “believe”, “forecast”,

“estimate”, “anticipate”, “expect”, “envisage”, “intend”, “plan”, “project”, “target” or any other words or phrases of similar

meaning. Such statements are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are not

guarantees of future performance and our actual results or other developments may differ materially from the expectations

expressed in the forward-looking statements. As for forward-looking statements that relate to future financial results and other

projections, actual results may be different due to the inherent uncertainty of estimates, forecasts and projections. Because of

these uncertainties, potential investors should not rely on these forward-looking statements. Neither AlphaCredit nor any of its

affiliates, directors, officers, agents or employees, nor any of the shareholders shall be liable, in any event, before any third party

(including investors) for any investment or business decision made or action taken in reliance on the information and statements

contained in this presentation or for any consequential, special or similar damages.

Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S.

Securities Act of 1933, as amended. No action has been taken in any jurisdiction to permit a public offering or distribution of any

securities. Any offering of securities to be made will be made solely by means of a confidential offering memorandum. Such

confidential offering memorandum will contain detailed information about AlphaCredit, and its subsidiaries, its business and

financial results, as well as its financial statements. This presentation does not constitute an offer, or invitation, or solicitation of an

offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any

contract or commitment whatsoever. This document has not been approved by the U.S. Securities and Exchange Commission, nor

any other competent regulatory or supervisory authority.

Statements about market share and other information relating to the consumer finance industry in Mexico and Colombia includes,

among others, statements pertaining to payroll loans, credit cards and insurance premium finance which are derived from

internal surveys, third-party sources, industry publications and publicly available information. Notwithstanding any investigation

that AlphaCredit or any affiliate may have conducted with respect to the market share, market size or similar data provided by

third parties, assume no responsibility for the accuracy or completeness of any such information.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in

part without AlphaCredit’s prior written consent.

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