symfonie p2p - 2nd seed equity round

8/12/2019 Symfonie P2P - 2nd Seed Equity Round

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Symfonie P2P, LTD30 March 2014- Proprietary and Confidential

London: 16 High Holborn, London WC1V 6BX Prague: Klimentska 1216 / 46, 110 00

T: +44 20 8616 7311 F: +44 20 8616 7499 T: +420 724 260 952 F: +420 222 191 200

This publication has been prepared by Symfonie Capital, LLC (Symfonie) for information purposes only. It is not an offer or solicitationfor the purchase or sale of any financial instrument. The publication and its contents are subject to changes. The timing and substanceof any changes are at the sole and absolute discretion of Symfonie. Symfonie bears any obligation nor makes any commitment to informany person of changes made. Investors should not rely on this document in the course of making any investment decisions and neitherSymfonie Capital bear no responsibility for the decision of any person to rely on this document in whole or in part. Reasonable care hasbeen taken to ensure that the information contained herein is not untrue or misleading, but no representation is made as to its accuracyor completeness. This document is confidential and proprietary to Symfonie. Transmission or publication of this document without theexpress prior consent of Symfonie is strictly prohibited. Symfonie Capital reserves all legal rights in connection with the publication ofthis document. Symfonie Capital, 2013.


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Contacts

Symfonie CapitalMichael Sonenshine

Tel: (London) +44 20 8616 7311 (Prague) + 420 222 191 [email protected]


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Window of Opportunity

Symfonie aims to build a profitable Peer to Peer finance business that provides consumers and businesses aconvenient way to borrow at competitive rates and offers investors the opportunity to earn significant higherrates of interest than they earn on classical term deposits.

Peer to Peer finance entails the provision of an internet platform that functions as a marketplace whereborrowers and savers can meet. The internet platform does not constitute provision of loans. Rather, it is a feebased financial service.

In addition to matching borrowers and savers the internet platform will enable companies seeking finance topresent their businesses to investors looking for investment opportunities. The platforms business revenueswill come from listing and advisory fees paid by businesses and investors

Focus on Central Europe

Relatively fast economic growth

Efficient banking systems

Increasing internet penetration

Open market access to credit providers

Wide gap between borrowing and lending ratesLegal protections for creditors

High growth market segments

Consumers increasing ability and willingness to borrow

SME growing business sector, under-served due to tightening credit requirements among banks


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Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 4

Winning Strategy for P2P Business

Innovate - develop products that are more attractive than what is available in traditionaldistribution channels

Refinance help credit worthy borrowers refinance high interest rate loans

Find underserved segments - reach borrowers who do not meet threshold requirements in thebanking sector, yet who are credit worthy

Leverage core competence in credit - segment borrowers into risk bands and work withthem to manage their borrowing needs

Restructure and recover - finding restructuring and recovery solutions that address lendersultimate goal of generating a favorable return/risk ratio

Develop scale and scope - address the needs of a wide range of borrowers

Cross Sell identify other financial products that can be sold to the customer base

Regional expansion export good systems and practices to enter other markets

Develop alliances create synergies by identifying good providers in other markets andbroadening platform access


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Milestones

Seed capital - Done. The company was seeded with a GBP 100,000 from the founders andSymfonie Angel Venture Fund, LP

Management team Done. The company recruited a team of highly experienced professionalsto execute the strategy.

Platform Development Operating software has been purchased and is being customised tosupport operations in EUR/USD/GBP/CZK/PLN.

Credit Models Credit scorecards for Consumer and SME loans are in development and beingback tested against live data. We will have proprietary models and in addition we arecontracting with Experian for expert scoring models.

Capital Raise In process. The Company is raising GBP 150,000. This will see us throughlaunch of commercial operations.

Launch of Commercial Operations planned for September 2014.


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Investor Terms Round 1

Total Capital Raised Up to GBP 150,000Total shares sold 75,000 25% of the Company, post money)

Preferred SharesVoting10% dividend, plus participation in overall company dividend

CZK 75 / EUR 2.7 / GBP 2.4 / US$3.8 per share

Common SharesVoting

CZK 65 / EUR 2.4 / GBP 2 / US$3.1 per shareNote: the companys base currency is pounds, so the price when translated into other currencies

is subject to change.


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Valuation

The business is valued with DCF (r=30%) and with an assumed earnings multiple of 15xearnings. Once functioning and developing according to plan the business should have value inthe near term of GBP 8 mn. This valuation does not incorporate growth opportunities as theCompany expands into Poland and other countries.

Source: Symfonie Capital estimates, based on business plan targets.. DCF assumes r=30%. PE 15 assumes 15x earnings multiple.

Company Value Over Time

-

10

20

30

40

1 2 3 4 5 6 7

Year of Oper ations

G B P m n

DCF PE 15 Capital Invested


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Growth Opportunities

SME lending in the Czech Republic

Build on success in the Czech Republ ic to enter Poland and other Central/East European markets

Tie to Angel Fund means add-on equity funding platform

Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC

Source: Symfonie Capital forecasts.


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Peer to Peer Lending Concept

Evaluates borrowers and assigns a riskscore

Approves or rejects borrowers Verifies borrower data Posts borrower demand to website Matches lenders and borrowers Payment processing and loan servicing

Peer to peer lending uses internet technology to create a marketplace ofborrowers and lenders.

Lenders earn higher ratesof interest than they couldearn on bank deposits.

Lenders can diversifyacross many borrowers.

The concept works forconsumer loans andbusiness loans.

Borrowers save moneyby borrowing at ratesless than what they

would pay to banks andfinance companies.

Lenders /Investors P2P Internet Service Borrowers


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Intermediation Contractual Structure

Intermediation contract withborrower and lender

Loan servicing contract withlenders Power of attorney to restructure

loans under certain conditions Take-over of loans in default

for more than certain period oftime

Processing payments amonglenders and borrowers

Implementation of legal loanrecovery process

Contract on intermediationsigned with P2P provider

Loan servicing agreement withP2P service provider Structured notes with terms

passing through interest andcredit risk of the underlyingloan

Intermediation contract withP2P provider

Loan agreement.

Lenders /Investors P2P Internet Service Borrowers


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A Region with Relatively Low Government Debt

Source: EU statistics database, Symfoni e Capital esti mates.

Gov ernment Debt / GDP

0

30

60

90

120

150

180

G R I T P T I E B E E U F R U K C Y E S D E H U A T M T N L P L S L F I

S K D K C Z L V L T S E R O L U B G E E

EU Coun tries

D e

b t / G D P ( % )



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Convergence Continues

Czech Republic o ffers relatively strong g rowth and a generally healthier consumer than most o therpeer countries in new Europe.

-5,000

10,000

15,00020,00025,00030,00035,000

E U 2 7

E u r o

1 7 F r a

n c e I t a l y

G e r m

a n y

U n i t e d K

i n g d o

m S p

a i n

P o r t

u g a l

C z e c h R

e p u b

l i c

P o l a n

d

H u n

g a r y

R o m

a n i a

B u l g

a r i a

S l o v

a k i a

E s t o n

i a

G D P / C

a p i t a

i n E u r o

2003 2012




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Convergence Continues

In Central and Eastern Europe consumer loans/capita is about 35% of the figu re in Western Europe


0500

1000

15002000250030003500

L o a n

s / C a p i t a

E U 2 7

E u r o

1 7 F r a

n c e I t a l y

G e r m

a n y

U n i t e d K

i n g d o

m S p

a i n

P o r t u

g a l

C z e c h R

e p u b

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P o l a n

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r i a

S l o v a k i a

E s t o n

i a C o n s u m e r D e b

t / C a p

i t a

( E U R O )

2003 2012

\


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Czech Consumer Debt is Relatively Low

Consumer lending in the Czech Republic is relatively low compared to Europe generally


0.0%2.0%4.0%6.0%8.0%

10.0%12.0%

14.0%

E U 2 7

E u r o

1 7 F r a

n c e I t a l y

G e r m

a n y

U n i t e d K i n g

d o m

S p a i n

P o r t u

g a l

C z e c h R e

p u b l i c

P o l a n

d

H u n g

a r y

R o m a

n i a

B u l g a

r i a

S l o v a k i a

E s t o n

i a C o n s u m e r L e n

d i n g

/ G D P ( % )

2003 2012



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Czech Republic is Strategically Well Located

The Czech Republic offers a EURO 8 bn consumer finance market and borders on Poland, theregions largest market


-5,000

10,00015,00020,00025,00030,000

35,000

P o r t u

g a l

C z e c h R e

p u b l i c

P o l a n

d

H u n g

a r y

R o m a

n i a

B u l g a

r i a

S l o v a k i a

E s t o n

i a C o n s u m e r

L e n

d i n g

( E u r o m

n )

2003 2012



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Bank Consumer Lending EUR 7.2 Bn Outstanding

Volume of consumerloans at banks isEUR 7.2 bn

Net consumer loangrowth at banks hasbeen practicallystagnant last severalyears .

Czech Consumer Loans Issued by Banks

Source: Czech National Bank , Symfonie Capital estimates. CZK translated into EUR at constant r ates.

7.27.27.3

6.8

6.2

5.1

4.0

3.3

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2005 2006 2007 2008 2009 2010 2011 2012


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Non-Bank Consumer Lending EUR 1.3 bn annually

Czech Consumer Loans Issued by Non-Banks EUR bn 931,752 contracts in

2012

loans taken in 2012:EUR 1.3 bn 2 mn active contracts:

EUR 2.2 bn 374,300 contracts in

2012 for personal loans:EUR 400 mn 204,470 revolving loans:

in 2012 EUR 455 mn 352,031 point of sale

loans in 2012: EUR 386mn

Source: Czech Leasing and Finance Association (www.clfa.cz). CZK translated into EUR at constant rates.

1.3

1.41.5

2.0

1.8

1.3

1.2

0.9

1.3

-

0.5

1.0

1.5

2.0

2.5

2004 2005 2006 2007 2008 2009 2010 2011 2012


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Polish Consumer Loans EUR 30 bn OutstandingPolish Consumer Loans

31.5 31.931.0

29.4

-

10.0

20.0

30.0

40.0

2009 2010 2011 2012

E U R B n

Source: National Bank of Poland and Sy mfonie Capital Estimates. PLN translated into EUR at constant rates.


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Bank Loans to Czech Businesses EUR 5.7 bn

Source: Czech National Bank , Symfonie Capital estimates. CZK translated into EUR at constant r ates.


Czech B usin ess Lo ans 1-5 Years

6.26.5

5.95.6

4.9

4.2

3.73.7

5.45.8 5.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 9.6% p.a.


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Non-banking Sector Loans to Czech Businesses EUR 1.2 bn

Source: Czech Leasing and Finance Assoc iation ( www.clfa.cz ). CZK translated into EUR at constant rates.


Non-Banking Sector Lo ans to Czech Businesses

0.94

0.69

0.44

0.210.150.14

0.080.07

0.99 1.00

1.12 1.21

0.0

0.5

1.0

1.5

2.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

E U R b n


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Lending to Polish SME Sector - EUR 40 bn

Source: National Bank of Poland and Symfonie Capital estimates. PLN translated into EUR at constant rates.


39.337.9

30.230.3

-

10.0

20.0

30.0

40.0

2009 2010 2011 2012

E U R B n


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Interest Rates Provide Opportunity for P2P

0

2

4

6

8

10

12

14

16

2005 2006 2007 2008 2009 2010 2011 2012

R a

t e s

( % )

Consumer Loan Rates Deposit Rates

r

Czech bank rates on consumer loans are about 14% while deposi t rates are lessthan 2%.

Source: Czech National B ank, Symfonie Capital estimates.


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Interest Rates Provide Opportunity for P2P

Polish deposit rates are less than 5% while base consumer lending ratesare more than 15%

Source: National Bank of Poland, Symfonie Capital estimates.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2009 2010 2011 2012

R a t e s

( % )

Consumer Loan Rates Depos it Rates Consumer RSPN (%)


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Why Borrow????

Source: CLFA - www.clfa.cz , Czech National Bank www.cnb.cz , National Bank of Poland and Symfoni e Capital estimates. CZK and PLN translated intoEUR at con stant rates.

Non-banking - about 33% are for used cars. Non-banking - about 33% are revolving loans

Non-banking - about 33% general consumer purchases

Non-banking average loan size is about EUR 1,500 Banking about 20% is revolving credit

Banking about 75% is for consumer purchases

Used car market in Czech Republic is about EUR 550 mn annually and about EUR 3 bn annually inPoland

Leading Non-bank Consumer Finance Companies Outanding Loans (EUR bn)CETELEMR, a.s. 0.38Home Credit, a.s. 0.32Provident Financial s.r.o. 0.17ESSOX, s.r.o. 0.13koFIN s.r.o. 0.05s Autoleasing, a.s. 0.04GE Money Auto, s.r.o. 0.04UniCredit Leasing CZ 0.04

1.17


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Whats the Problem????

Loan rates, especially non-bank loans, are 10-20%

Smaller loans and shorter term loans are much more expensive than bigger loans

and longer term loans.Revolving charge cards are expensive 20% and higher

Consumer loan pricing is not always transparent non-interest charges increase loancost substantially

Many consumer lenders charge clients for early repayment usually about 1% of theoutstanding amount of the loan

Many consumer lenders charge a monthly account fee in addition to the interest rate

The window of opportunity is to identify credit worthy clients who are paying highinterest rates and re-finance them at same or lower rates with consumer-friendlyterms, policies and procedures.


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Small Loans Present Big Pricing Opportunity

Lenders Charge More for Small Loans Than for Large Loans

Source: Symfonie Capital research and estimates.

0

10

20

30

40

50

60

-

2 , 0

0 0

4 , 0

0 0

6 , 0

0 0

8 , 0

0 0

1 0

, 0 0 0

1 2

, 0 0 0

1 4

, 0 0 0

1 6

, 0 0 0

1 8

, 0 0 0

2 0

, 0 0 0

2 2

, 0 0 0

2 4

, 0 0 0

2 6

, 0 0 0

2 8

, 0 0 0

3 0

, 0 0 0

Size of Loan (EUR)

B a s e

I n t e r e s

t R a t e

( % )


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Loan Term Impacts Pricing

Lenders Generally Offer Lower Rates for Longer Term Loans


0

10

20

30

40

50

60

70

0 6 1 2

1 8

2 4

3 0

3 6

4 2

4 8

5 4

6 0

6 6

7 2

7 8

8 4

Term of Loan (Months)

R P S

N ( % )


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Credit Insurance Adds to the Cost

Account Fees and Credit Protection Insurance 2-12% to Loan Cost Annually


0

2

4

6

8

1012

14

-

2 , 0

0 0

4 , 0

0 0

6 , 0

0 0

8 , 0

0 0

1 0

, 0 0 0

1 2

, 0 0 0

1 4

, 0 0 0

1 6

, 0 0 0

1 8

, 0 0 0

2 0

, 0 0 0

2 2

, 0 0 0

2 4

, 0 0 0

2 6

, 0 0 0

2 8

, 0 0 0

3 0

, 0 0 0

Size of Loan (EUR)

A d d i t o

n a

l F e e s

( % )


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Total Cost Ranges from 10% - 60%


0

10

20

30

40

50

60

70

-

2 , 0

0 0

4 , 0

0 0

6 , 0

0 0

8 , 0

0 0

1 0

, 0 0 0

1 2

, 0 0 0

1 4

, 0 0 0

1 6

, 0 0 0

1 8

, 0 0 0

2 0

, 0 0 0

2 2

, 0 0 0

2 4

, 0 0 0

2 6

, 0 0 0

2 8

, 0 0 0

3 0

, 0 0 0

Size of Loan (EUR)

R P S N ( % )


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Competitive Edge Opportunities to Get Market Share

Lower costs - pass cost savings on to the borrowersKnowing the client better - understand the borrowers to keep default rates lowData gathering - gather data on customers so and tailor products to meet their needsSize doesn t matter Develop a lending model that doesnt automatically impose higher baseinterest rates on smaller size loansFlexible - we allow borrowers to easily shorten or lengthen loan tenor Proactive credit management - work with clients to help them manage credit problems beforethey turn into defaultsChoice of flat or declining payment - offer loans with declining monthly payment as analternative to the traditional flat payment structurePayment holidays - build one or two months per year into the payment calendar where nopayment is dueRising payment loans - offer loans that have smaller payments on the front end and largerpayments on the back end.Look-back rewards - reward consistent payers with cash-back, credit toward principal balance,step-down interest ratesCross selling - cross sell customers into other financial products besides lending and borrowingSource: Symfonie Capital. The above list is indicative and does not necessarily reflect final product features, terms and conditions.


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The Symfonie Advantage

COMPETITOR BASE OFFERLoan amount EUR 2,574 Interest 17.2% Monthly Payment EUR 51Total Payments - EUR 4,320 and after cash-back for 100% on-time payments, EUR 3,600 EUR 720savings

SYMFONIE BASE OFFERLoan amount EUR 2,574 Interest 17.2%Monthly Payment Starts at EUR 68, declines each month.last payment is just EUR 19.Total Payments - EUR 4,141

Borrower saves nearly EUR 180 vs. Competitor base offer.

SYMFONIE REWARDS PROGRAMLoan amount EUR 2,574 Interest 17.2%, declines by 100 bp per year Monthly Payment Starts at EUR 68 declines each month.

After each 12 monthly on-time payments, 1/3 of the interest is credited back to borrower, reducing theoutstanding principal balanceTotal Payments - EUR 3,491

Borrower saves nearly EUR 830 AND reduces payment time to 72months.

Source: Symfonie Capital. The above list is indicative and does not necessarily reflect final product features, terms and conditions.


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Non-bank Competitors Loans Originated 2012 Cetelem wide product offering, easy repayment options, competitive pricing on payment insurance.

RPSN ranges from 11% for larger loans to 19.8% for smaller loans. Growing network of retail distributionpartners. Advertised on-line pre-approval in a few minutes.

Home Credit relatively expensive lender, no offer on payment insurance. RPSN for smaller sized,shorter tenor loans as high as 46%. RPSN on longer tenor and larger terms as little as 11%. Wide point-of-sale network. No on-line application.

Provident loans 45 - 100 days. Quick approval. 50% interest rate. Mainly for consumers who cant getcredit and are high risk of default. EUR 150 EUR 3,000. More than 10% of non-bank loans are viaProvident.

Symfonie business model looks to develop about EUR 73 mn in annual loan originations in theCzech Republic by year 5, which is about 6% of the current annual tally of personal loans withinthe non-bank sector and less than 1% of the annual figure for the banking sector .

Source: Czech Leasing & Finance Association www.clfa.cz ). CZK translated in to EUR at constnat rates.

CETELEMR, a.s. 0.38Home Credit, a.s. 0.32Provident Financial s.r.o. 0.17ESSOX, s.r.o. 0.13koFIN s.r.o. 0.05s Autoleasing, a.s. 0.04GE Money Auto, s.r.o. 0.04UniCredit Leasing CZ 0.04

1.17

Leading Non-bank Consumer Finance Companies Outanding Loans (EUR bn)


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Czech Savings and Investment Base

Source: Czech National Bank, Symfonie Capital research and estimates. CZK translated into EUR at constnat rates.

48 5361

68 71 7578 80

3232

3534

3535

37 39

-

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012

E U R B n

Bank Deposits Securities & Mutual Funds


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Polish Savings and Investment

Source: National Bank of Poland, Symfonie Capital research and estimates. PLN translated into EUR at constant rates.

92.3100.6

113.7122.9

24.8

28.6

27.4

35.3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2009 2010 2011 2012

E U R B n

Bank Deposits Mutual Funds


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Non-Performing Loans

Household Loans - Non-Performing

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2005 2006 2007 2008 2009 2010 2011 2012

r

Bank non-performingloans to households haverisen to around 6%.

Among unsecuredconsumer loans the non-performing rate isprobably closer to 8%.

Home Credit recentlyreported about 8.5%.

CNB bank lending surveyrecently indicated bankscharge on average 17%on their relatively riskyloans.

Mortgage loans aretypically categorized aslow risk due tocollateralization..

Source: Czech National Bank and Symfonie Capital estimates.


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Czech Operation Revenue Targets

The current plan targets issuance of about EUR 4 mn of loans in the first 12 months following launch, rising to anannual volume of EUR 80 mn by the 5th year of operation.

The revenue model assumes an average loan tenor 3 years and an average loan size EUR 2,000

Origination fees are expected to average 3% of loan, collected up front. A loan servicing fee of 2% of the monthlypayment amount, collected over tenor of the loan is expected. Additional fees can come from the sale of paymentprotection insurance, which reduces loan default risk and benefits borrowers and lenders

The revenue target implies about 4% of the consumer loan market by year 5

Source: Symfonie Capital, There is no assurance the targets will actuall y be achieved. Actual performance may differ depending on market condi tions and prod uct terms andcondit ions. Revenue model is subject to change.

Revenue & Net Pro fit Model

-20

2468

10

1 2 3 4 5 6 7

Year of Operations

E U R m n

Net Profits Revenues


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Operating Staff vs. Volumes

Operating staff includes customer service/sales, loan origination, loan administration

Operating principles include classical banking and financial services control procedures

Staffing plans were derived from analysis of planned processes and are generally consistentwith what we have observed at other P2P and financial services providers


Source: Symfonie Capital. Actual results may differ from forecasts.

Operating Staff vs. Volume

-

20.0

40.0

60.0

80.0

100.0

1 2 3 4 5 6 7

Year of Operations

D e a

l s ( 0 0 0 ) & S t a f f

Deals Done (thousand) Customer Service & Loan Admin Staff


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Incentivising Management & Employees

Management and employees earn ownership in the Company.

Management and employ ownership consists of options to buy shares in theCompany, vested over time and with cash payments in exchange for the shares.Vesting begins after 18 months of service and take place over an 18 month period.Managers therefore must work for 36 months in order to become fully vested.

Management buy-in is 23% of the Company on a fully diluted basis.

Management and employees also have an incentive programme and can earnoptions to buy shares in the Company. The incentive programme begins afterthree years and is vested over a two year period, so management must stay withthe Company for five years in order to be fully vested.


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Management Incentive Plan

Option Plan for Year 4 Earnings

0%2%

4%

6%

8%10%12%

14%

8 5 , 9 8 5

1 7 1 , 9

6 9

2 5 7 , 9

5 4

3 4 3 , 9

3 8

4 2 9 , 9

2 3

5 1 5 , 9

0 7

6 0 1 , 8

9 2

6 8 7 , 8

7 6

7 7 3 , 8

6 1

8 5 9 , 8

4 5

Year 4 Earn in gs (EUR)

% o

f C o m p a n y

E a r n e d

Option Plan for Year 5 Earnings

0%

2%4%6%8%

10%12%

14%

1 4 9 , 5

4 6

2 9 9 , 0

9 2

4 4 8 , 6

3 8

5 9 8 , 1

8 3

7 4 7 , 7

2 9

8 9 7 , 2

7 5

1 , 0 4 6

, 8 2 1

1 , 1 9 6

, 3 6 7

1 , 3 4 5

, 9 1 3

1 , 4 9 5

, 4 5 9

Year 5 Earn in gs (EUR)

% o

f C o m p a n y

E a r n e

d

Management earns options on company equity depending on profits produced in year 4 and 5

Option plan is subject to adjustment by the Companys directors and approval by shareholders


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Symfonie P2P - Michael Sonenshine CEO

Michael Sonenshine , CFA Investment Principal

Mr. Sonenshine More than 20 years of experience in banking and investment management. Hespecialises in credit investments. He founded the Symfonie group of companies in 2012.

MT Thaler, Prague/London: CEO/Partner, Head of Research. Investment funds focused on centraland eastern Europe and pan-European credit markets

CSFB, London: European High Yield Debt Research

ING Bank, London: European High Yield Debt Research

ING Investment Management, Prague: CEO, Czech Republic

ING Bank, London: Analyst

Driehaus Capital, Prague: Analyst

Evrobank, Prague: Advisor

MBA William Simon School, University of Rochester

B.A., Tufts University


Symfonie P2P Peter McGregor Chief Operating Officer


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Symfonie P2P - Peter McGregor - Chief Operating Officer

Mr McGregor oversees all administrative and operational issues for Symfonie in theP2P arena.

More than 25 years experience in banking and operations management

Banco Nacional de Guinea Ecuatorial Chief Operations Officer

MT Thaler Investment Management, Chief Operations Officer.

ING Bank, Monaco, Budapest, Prague Wholesale banking and wealth managementoperations

ABN AMRO, Geneva private banking operations and product management

PhD, Computer Science, Oxford University, England

BSc (Hons) in Mathematics, Witwatersrand, Johannesburg, South Africa

Symfonie P2P Stepan Alexa Chief Technology Officer


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Symfonie P2P Stepan Alexa - Chief Technology Officer

Mr. Alexa is responsible for the architecture and implementation of the companys ITsolutions.

More than 15 years professional experience in systems development

Implemented database systems in Central and Eastern Europe for T-Mobile,Vodafone and MTS Russia

Sales Director, Oracle, Central and East Europe

MSc, Economics and Computer Science, Prague College of Economics

Symfonie P2P Jitka Rombova - Chief Financial Officer


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Symfonie P2P Jitka Rombova - Chief Financial Officer

Ms. Rombova is responsible for overseeing and monitoring the companys finance.

More than 20 years professional experience in managerial finance and businessdevelopment

Partner, CQK Invest, providing financial and business support to innovative startupcompanies

10 years experience in senior management positions in HBO Europe, promoted toCFO

MBA, University of Pittsburgh, Diploma, University of Chemical Technology, Prague

S f i Ad i B d


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Symfonie Advisory Board

The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has regularmeetings with the Advisory Board to discuss the Funds investments, strategy, research on P2P providers. AdvisoryBoard members are independent of Symfonie and do not have legal or regulatory authority or status within Symfonie.

Willem NavesHolland

More than 25 years of experience in investment and corporate banking.Banking advisory projects in Macedonia, Poland, El Salvador and IndonesiaTwenty years experience in credit trading management posi tions in the ING Group, working in Amsterdam, London and SaoPaoloErasmus University degree in Law

Pavel KohoutCzech RepublicFifteen years experience in economic analysis and investment managementDirector of Strategy at Partners Advisors, a leading Czech financial advisory f irm

Author of several books on economicsMember of Czech National Economics Advisory BoardMember, Expert Panel of Advisors to Czech Ministry of Finance



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Appendices

f


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Symfonie P2P Structure

SymCreditCzech Republic

Operatingcompany in theCzech Republic

Symfonie P2P, LTD

Source: Symfonie Capital. Shareholding stru cture assumes all Round 1 and Round 2 investors partic ipate via Symfoni e Ventures`

Seed investors own Preferred sharespreferential rights to dividends to 10% perannum notional dividend (when/if declared),parri-passu with common thereafter.

Convertible to common at any time.Seed investment EUR 125,000 - CLOSEDRound 1 GBP 600,000 for startup and launchof operations NOW OPEN

SymCreditPoland

Operatingcompany in

Poland

100 % ownership of operatingsubsidiaries

Sh h ldi


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Shareholding

Seed & Round 132%

Round 222%

Management earn-in

23%

Managementincentive

23%

Indicative shareholding structure, post money, assuming all authorised capital sold andissued.


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K C t G P i i


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Key Corporate Governance Provisions

New issuance of capital must be approved by at least 75% of outstanding shares.

The business may not incur debt totaling more than 20% of share capital without atleast 65% approval of outstanding shares.

The business must payout at least 50% of net earnings as dividends unless atleast 75% of shareholders approve otherwise.

Drag provision to incorporated into the statutes. If at least 85% of shareholdersagree to sell their shares the other 15% are bound.

Tag provision all shareholders are entitled to participate pro rata in any offer to buysecondary shares.

K Ri k


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Key Risks

Underperformance - If the business plan is underperforming more capital will be needed. Inthis case the shareholders will decide whether to authorise additional capital or decreasemanagement incentive pool.

Competition other P2P operators may enter the markets faster than we do.

Finance the business is likely to need additional capital to expand into other markets.There is no guarantee capital will be readily available on favourable terms and conditions.

Exit strategy there is no guarantee the business or the shares will be readily marketablewhen and exit is desired.

Legislation adverse legislation may prevent the business from developing or may prohibit

the business entirely

New operations all procedures, policies and systems will be new, untried and untested.


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Profit Development


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Profit Development


Net Income Y1 Y2 Y3 Y4 Y5 Y6 Y7EBITDA 399,919 143,124 494,343 1,102,366 1,917,255 2,815,416 3,703,995Corporate tax 87,982 31,487 108,755 242,520 421,796 619,392 814,879Net profit 311,937 111,636 385,587 859,845 1,495,459 2,196,024 2,889,116


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symfonie p2p - 2nd seed equity round

Documents