symfonie p2p ltd - capital raise

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 solicitation for the purchase or sale of any financial instrument. The publication and its contents are subject to changes. The timing and substance of any changes are at the sole and absolute discretion of Symfonie. Symfonie bears any obligation nor makes any commitment to inform any person of changes made. Investors should not rely on this document in the course of making any investment decisions and neither Symfonie Capital bear no responsibility for the decision of any person to rely on this document in whole or in part. Reasonable care has been taken to ensure that the information contained herein is not untrue or misleading, but no representation is made as to its accuracy or completeness. This document is confidential and proprietary to Symfonie. Transmission or publication of this document without the express prior consent of Symfonie is strictly prohibited. Symfonie Capital reserves all legal rights in connection with the publication of this document. © Symfonie Capital, 2013.

Contacts

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

Window of Opportunity

Symfonie aims to build a profitable Peer to Peer finance business that provides consumers and businesses a convenient way to borrow at competitive rates and offers investors the opportunity to earn significant higher rates 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 where borrowers and savers can meet. The internet platform does not constitute provision of loans. Rather, it is a fee based financial service.

In addition to matching borrowers and savers the internet platform will enable companies seeking finance to present their businesses to investors looking for investment opportunities. The platform’s business revenues will 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 rates

Legal protections for creditors

High growth market segmentsConsumers – increasing ability and willingness to borrow

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

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 traditional distribution channels

Refinance – help credit worthy borrowers refinance high interest rate loans

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

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

Restructure and recover - finding restructuring and recovery solutions that address lenders’ultimate 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 and broadening platform access

Business Plan Overview

Base Model in GBP

Model Drivers Y1 Y2 Y3 Y4 Y5 Y6 Y7Deals Closed 2,660 10,620 23,400 36,300 49,200 63,600 78,000 Loans value originated 4,079,755 16,288,344 35,889,571 55,674,847 75,460,123 97,546,012 119,631,902 Year End Outstanding Loans 3,742,162 16,946,484 42,041,423 72,629,300 104,742,531 138,678,932 174,073,015 Total Year‐End Headcount 8 14 25 34 46 57 70

Revenues Y1 Y2 Y3 Y4 Y5 Y6 Y7Origination Fees 122,393 488,650 1,076,687 1,670,245 2,263,804 2,263,804 2,926,380 Loan Servicing Fees 8,928 79,500 270,965 613,957 1,041,300 1,512,599 1,994,478 PPI Fees 4,464 39,750 135,483 306,979 520,650 756,299 997,239 Total Revenues 135,785 607,900 1,483,135 2,591,182 3,825,753 5,195,278 6,580,675

Net Income Y1 Y2 Y3 Y4 Y5 Y6 Y7EBITDA ‐333,675 ‐119,416 412,458 919,765 1,599,673 2,349,059 3,090,450Corporate tax ‐73,408 ‐26,272 90,741 202,348 351,928 516,793 679,899Net profit ‐260,266 ‐93,144 321,717 717,417 1,247,745 1,832,266 2,410,551

Data are based on the current business plan and are subject to change.

Milestones

Seed capital - Done. The company was seeded with a GBP 100,000 from the founders and Symfonie 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 to support operations in EUR/USD/GBP/CZK/PLN.

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

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

Launch of Commercial Operations planned for September 2014.

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

Common SharesVotingCZK 65 / EUR 2.4 / GBP 2 / US$3.1 per share

Note: the company’s base currency is pounds, so the price when translated into other currencies is subject to change.

Business Opportunity

• Central and Eastern Europe is a market of 92 mn people

• EUR 877 bn in GDP

• Approximately EUR 50 bn in consumer debt

• About EUR 600 bn in commercial debt

• Debt/GDP in Central and Eastern Europe is about 50% of debt/GDP in Western Europe.

• GDP growth is generally higher than in Western Europe while unemployment is generally lower

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

Valuation

The business is valued with DCF (r=30%) and with an assumed earnings multiple of 15x earnings. Once functioning and developing according to plan the business should have value in the near term of GBP 8 mn. This valuation does not incorporate growth opportunities as the Company 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

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10

20

30

40

1 2 3 4 5 6 7

Year of Operations

GB

P m

n

DCF PE 15 Capital Invested

Growth Opportunities

SME lending in the Czech Republic

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

Tie to Angel Fund means add-on equity funding platform


Source: Symfonie Capital forecasts.


Peer to Peer Lending Concept

• Evaluates borrowers and assigns a risk score

• 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 of borrowers and lenders.

• Lenders earn higher rates of interest than they could earn on bank deposits.

• Lenders can diversify across many borrowers.

• The concept works for consumer loans and business loans.

• Borrowers save money by borrowing at rates less than what they would pay to banks and finance companies.

Lenders /Investors P2P Internet Service Borrowers


Intermediation Contractual Structure

• Intermediation contract with borrower and lender

• Loan servicing contract with lenders

• Power of attorney to restructure loans under certain conditions

• Take-over of loans in default for more than certain period of time

• Processing payments among lenders and borrowers

• Implementation of legal loan recovery process

• Contract on intermediation signed with P2P provider

• Loan servicing agreement with P2P service provider

• Structured notes with terms passing through interest and credit risk of the underlying loan

• Intermediation contract with P2P provider

• Loan agreement.

Lenders /Investors P2P Internet Service Borrowers

A Region with Relatively Low Government Debt

Source: EU statistics database, Symfonie Capital estimates.

Government Debt / GDP

0

30

60

90

120

150

180

GR IT PT IE BE EU FR UK CY ES DE HU AT MT NL PL SL FISK DK CZ LV LT SE RO LU BG EE

EU Countries

Deb

t / G

DP

(%)


Relatively Low Private Debt Stock

Private Sector Debt / GDP

0

50100

150

200

250300

350

LU IE PT BE DK SE NL ES MT UK FIEU FR AT HU EE IT GR DE SL LV CZ PL SK LT

EU Countries

Deb

t / G

DP

(%)



Convergence Continues

Czech Republic offers relatively strong growth and a generally healthier consumer than most other peer countries in new Europe.

-

5,00010,000

15,000

20,000

25,00030,000

35,000

EU 27Euro

17Franc

eIta

lyGerm

any

United King

domSpa

inPort

ugal

Czech

Rep

ublic

Poland

Hungary

RomaniaBulg

aria

Slovakia

Estonia

GD

P/C

apita

in E

uro

2003 2012



Convergence Continues

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


0

500

1000

15002000

2500

3000

3500

Loan

s/Cap

itaEU 27Euro

17Franc

eIta

lyGerm

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United King

domSpa

inPort

ugal

Czech

Rep

ublic

Poland

Hungary

RomaniaBulg

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Slovakia

Estonia

Con

sum

er D

ebt/C

apita

(EU

RO

)

2003 2012

\

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%

EU 27Euro

17Franc

eIta

lyGerm

any

United King

domSpa

inPort

ugal

Czech

Rep

ublic

Poland

Hungary

RomaniaBulg

aria

Slovakia

Estonia

Con

sum

er L

endi

ng /

GD

P (%

)

2003 2012


Czech Republic is Strategically Well Located

The Czech Republic offers a EURO 8 bn consumer finance market and borders on Poland, the region’s largest market


-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Portug

alCze

ch R

epubli

c

Poland

Hungary

Romania

Bulgari

aSlov

akia

Estonia

Con

sum

er L

endi

ng (E

uro

mn)

2003 2012



Bank Consumer Lending – EUR 7.2 Bn Outstanding

• Volume of consumer loans at banks is EUR 7.2 bn

• Net consumer loan growth at banks has been practically stagnant last several years.

Czech Consumer Loans Issued by Banks

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

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


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 386 mn

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

Polish Consumer Loans – EUR 30 bn Outstanding

Polish Consumer Loans

31.5 31.931.0

29.4

-

10.0

20.0

30.0

40.0

2009 2010 2011 2012

EUR

Bn

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

Bank Loans to Czech Businesses – EUR 5.7 bn

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


Czech Business Loans 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.

Non-banking Sector Loans to Czech Businesses – EUR 1.2 bn

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


Non-Banking Sector Loans to Czech Businesses

0.94

0.69

0.44

0.210.150.14

0.080.07

0.99 1.00

1.121.21

0.0

0.5

1.0

1.5

2.0

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

EUR

bn

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

EUR

Bn


Interest Rates Provide Opportunity for P2P

0

2

4

6

8

10

12

14

16

2005 2006 2007 2008 2009 2010 2011 2012

Rat

es (%

)

Consumer Loan Rates Deposit Rates

r

• Czech bank rates on consumer loans are about 14% while deposit rates are less than 2%.

Source: Czech National Bank, Symfonie Capital estimates.


Interest Rates Provide Opportunity for P2P

• Polish deposit rates are less than 5% while base consumer lending rates are 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

Rate

s (%

)

Consumer Loan Rates Deposit Rates Consumer RSPN (%)


Why Borrow????

Source: CLFA - www.clfa.cz, Czech National Bank www.cnb.cz, National Bank of Poland and Symfonie Capital estimates. CZK and PLN translated into EUR at constant 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 in Poland

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

1.17


What’s 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 loan cost substantially

•Many consumer lenders charge clients for early repayment – usually about 1% of the outstanding 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 high interest rates and re-finance them at same or lower rates with consumer-friendly terms, policies and procedures.


P2P Loan Pricing

• Base interest rate – based on credit risk score each borrower is assigned a base interest rate.

• Borrowers who continually meet the payment schedule can be credited back interest as a reduction in principal. Late payments are charged over-due fees.

• Each borrower carries payment protection insurance. P2P provider earns a commission on the payment protection insurance.

• A margin is added to the base and is the fee earned by the P2P loan intermediator.

Few lenders offer interest look backs, step-down interest, no-prepayment penalties, flexible credit policies. We can compete by offering borrowers an interesting alternative to classical loans.


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-

2,00

0

4,00

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6,00

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8,00

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10,0

00

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00

14,0

00

16,0

00

18,0

00

20,0

00

22,0

00

24,0

00

26,0

00

28,0

00

30,0

00

Size of Loan (EUR)

Base

Inte

rest

Rat

e (%

)


Loan Term Impacts Pricing

Lenders Generally Offer Lower Rates for Longer Term Loans


0

10

20

30

40

50

60

700 6 12 18 24 30 36 42 48 54 60 66 72 78 84

Term of Loan (Months)

RP

SN (%

)


Credit Insurance Adds to the Cost

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


0

2

4

6

8

10

12

14-

2,00

0

4,00

0

6,00

0

8,00

0

10,0

00

12,0

00

14,0

00

16,0

00

18,0

00

20,0

00

22,0

00

24,0

00

26,0

00

28,0

00

30,0

00

Size of Loan (EUR)

Addi

tona

l Fee

s (%

)


Total Cost Ranges from 10% - 60%


0

10

20

30

40

50

60

70-

2,00

0

4,00

0

6,00

0

8,00

0

10,0

00

12,0

00

14,0

00

16,0

00

18,0

00

20,0

00

22,0

00

24,0

00

26,0

00

28,0

00

30,0

00

Size of Loan (EUR)

RPSN

(%)


Credit Protection Insurance

Credit Protection Insurance - The Cost of Safety

Source: Symfonie Capital research and estimates. Data from Czech lenders.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

368

2,20

6 4,

044

5,88

2 7,

721

9,55

9 11

,397

13,23

5 15

,074

16,91

2

Loan Size - EUR

Insu

ranc

e C

ost (

% o

f Loa

n)

CS Cetelem Low Cetelem High GE Low GE High


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 doesn’t automatically impose higher base interest rates on smaller size loansFlexible - we allow borrowers to easily shorten or lengthen loan tenorProactive credit management - work with clients to help them manage credit problems before they turn into defaultsChoice of flat or declining payment - offer loans with declining monthly payment as an alternative to the traditional flat payment structurePayment holidays - build one or two months per year into the payment calendar where no payment is dueRising payment loans - offer loans that have smaller payments on the front end and larger payments 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 borrowing

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


The Symfonie Advantage

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

SYMFONIE BASE OFFER•Loan 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 PROGRAM•Loan 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 the outstanding principal balance•Total Payments - EUR 3,491

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

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


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 distribution partners. 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 can’t get credit and are high risk of default. EUR 150 – EUR 3,000. More than 10% of non-bank loans are via Provident.

• Symfonie business model looks to develop about EUR 73 mn in annual loan originations in the Czech Republic by year 5, which is about 6% of the current annual tally of personal loans within the 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.

CETELEM ČR, a.s. 0.38Home Credit, a.s. 0.32Provident Financial s.r.o. 0.17ESSOX, s.r.o. 0.13ŠkoFIN 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)


Credit Model Framework

Credit score driven by disposable income vs. monthly payment

The higher the score, the lower the base interest, irrespective of amount client wants to borrow

Source: Symfone Capital. Credit model is illustrative only and does not necessarily reflect the actual credit model employed.

2 3 4 6 8 10368 0 0 0 0 0 0551 0 0 0.46 0.64 0.73 0.83735 0.2 0.45 0.6 0.75 0.85 0.9919 0.28 0.55 0.69 0.83 0.89 0.93

1,103 0.31 0.58 0.71 0.84 0.92 0.941,287 0.36 0.59 0.78 0.87 0.92 0.951,471 0.39 0.64 0.78 0.87 0.92 0.961,654 0.41 0.64 0.76 0.89 0.93 0.961,838 0.43 0.66 0.76 0.87 0.93 0.972,022 0.44 0.69 0.77 0.88 0.93 0.972,206 0.45 0.69 0.78 0.88 0.94 0.972,390 0.47 0.69 0.78 0.88 0.96 0.972,574 0.47 0.69 0.78 0.9 0.94 0.972,757 0.48 0.68 0.79 0.9 0.94 0.982,941 0.48 0.68 0.79 0.91 0.95 0.983,125 0.48 0.68 0.79 0.91 0.95 0.98

DISPOSABLE INCOME/MONTHLY PAYMENT

DIS

POS

AB

LE IN

CO

ME

(EU

R)


P2P Companies - Sources of Lenders

Own Equity – Well capitalised P2P companies may use some of their own capital in order to fill gaps between arrival of borrowers and lenders to the site.

Family Offices – Symfonie believe appetite among family office for relatively secure high yield product is strong. P2P providers with robust operations should enjoy good access to this sector of the lending market.

Alternative Investment Funds –Hedge funds represent about EUR 1.5 trillion in assets, of which about 10% or EUR 150 bn is invested in credit markets.

People – Symfonie expect ample supply of lending capital from the retail market. Bank deposit rates are less than 2%. Household bank deposits in Czech Republic are EUR 80 billion and growing. Household investments in capital markets are EUR 40 bn.

Borrowings – P2P companies borrow to ensure growing demand for loans can be met.


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 75 78 80

3232

3534

3535

37 39

-

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012

EUR

Bn

Bank Deposits Securities & Mutual Funds


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

EUR

Bn

Bank Deposits Mutual Funds


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-performing loans to households have risen to around 6%.

Among unsecured consumer loans the non-performing rate is probably closer to 8%.

Home Credit recently reported about 8.5%.

CNB bank lending survey recently indicated banks charge on average 17% on their relatively risky loans.

Mortgage loans are typically categorized as low risk due to collateralization..

Source: Czech National Bank and Symfonie Capital estimates.


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 an annual 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 monthly payment amount, collected over tenor of the loan is expected. Additional fees can come from the sale of payment protection 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 actually be achieved. Actual performance may differ depending on market conditions and product terms and conditions. Revenue model is subject to change.

Revenue & Net Profit Model

-202468

10

1 2 3 4 5 6 7

Year of Operations

EUR

mn

Net Profits Revenues


Expense Model

Operating staff, management and marketing are the largest cost items, accounting for nearly 80% of the expense budget. The Company plans to keep marketing costs contained during the first 12 – 18 months after start of operations while it ensures quality control and makes initial product adjustments.

Source: Symfonie Capital. The cost model presented is indicative and subject to change without notice. Actual results may differ.

Expenses Year 3

Credit check fee

Office Rent

Office Supplies

IT Systems

Business admin & analysis compensation

Management compensation

Communication

Supervisory Board

Accounting

Legal

Travel

Marketing

Credit staff compensation

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 consistent with what we have observed at other P2P and financial services providers


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

Operating Staff vs. Volume

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20.0

40.0

60.0

80.0

100.0

1 2 3 4 5 6 7

Year of Operations

Dea

ls (0

00) &

Sta

ff

Deals Done (thousand) Customer Service & Loan Admin Staff


Incentivising Management & Employees

• Management and employees earn ownership in the Company.

• Management and employ ownership consists of options to buy shares in the Company, 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 earn options to buy shares in the Company. The incentive programme begins after three years and is vested over a two year period, so management must stay with the Company for five years in order to be fully vested.

Management Incentive Plan

Option Plan for Year 4 Earnings

0%

2%

4%

6%

8%

10%

12%

14%

85,98

5 17

1,969

25

7,954

34

3,938

42

9,923

51

5,907

60

1,892

68

7,876

77

3,861

85

9,845

Year 4 Earnings (EUR)

% o

f Com

pany

Ear

ned

Option Plan for Year 5 Earnings

0%

2%

4%

6%

8%

10%

12%

14%

149,5

46

299,0

92

448,6

38

598,1

83

747,7

29

897,2

75

1,04

6,821

1,

196,3

67

1,34

5,913

1,

495,4

59

Year 5 Earnings (EUR)

% o

f Com

pany

Ear

ned

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

• Option plan is subject to adjustment by the Company’s directors and approval by shareholders

Symfonie P2P - Michael Sonenshine – CEO

Michael Sonenshine, CFA – Investment Principal

Mr. Sonenshine More than 20 years of experience in banking and investment management. He specialises 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 central and 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

Mr McGregor oversees all administrative and operational issues for Symfonie in the P2P 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 management operations

•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

Mr. Alexa is responsible for the architecture and implementation of the company’s IT solutions.

•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

Ms. Rombova is responsible for overseeing and monitoring the company’s finance.

•More than 20 years professional experience in managerial finance and business development

•Partner, CQK Invest, providing financial and business support to innovative startup companies

•10 years experience in senior management positions in HBO Europe, promoted to CFO

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

Symfonie Advisory Board

The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has regular meetings with the Advisory Board to discuss the Fund’s investments, strategy, research on P2P providers. Advisory Board 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 Indonesia•Twenty years experience in credit trading management positions in the ING Group, working in Amsterdam, London and Sao Paolo•Erasmus 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 firmAuthor of several books on economicsMember of Czech National Economics Advisory BoardMember, Expert Panel of Advisors to Czech Ministry of Finance


Appendices


Symfonie P2P Structure

SymCreditCzech Republic

Operating company in the Czech Republic

Symfonie P2P, LTD

Source: Symfonie Capital. Shareholding structure assumes all Round 1 and Round 2 investors participate via Symfonie Ventures`

Seed investors own Preferred shares preferential rights to dividends to 10% per annum notional dividend (when/if declared), parri-passu with common thereafter. Convertible to common at any time.

Seed investment EUR 125,000 - CLOSED

Round 1 GBP 600,000 for startup and launch of operations – NOW OPEN

SymCreditPoland

Operating company in

Poland

100 % ownership of operating subsidiaries

Shareholding

Seed & Round 132%

Round 222%

Management earn-in

23%

Management incentive

23%

• Indicative shareholding structure, post money, assuming all authorised capital sold and issued.

Shareholder Value

A win-win for management and shareholders

Based on 1 mn EUR mn invested, shareholders generate 8X multiple over 5 years

Management earn value through buy-in and profit incentives

*Value of investors’ shares prior to the first year of operations is equal to the cash invested, assuming all shares sold in Round 1 and 2 are common shares.

** Value of management share prior to the first year of operations is equal to the potential total amount of money management pay for shares acquired through the buy-in and incentive plans. In years 1 to 5 value is based on the full number of shares reserved for the buy-in and incentive plans.

In EURPeriod End Seed + Round 1 and 2 1 2 3 4 5Firm Value ‐ DCF ‐ 5,834,505 8,272,960 10,897,972 13,673,020 16,915,081 Firm Value ‐ 15x P/E ‐ ‐ ‐ 5,783,811 12,897,679 22,431,880

‐ ‐ ‐ ‐ ‐ ‐ Authorised number of shares 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Outstanding 800,000 800,000 915,500 1,325,000 1,500,000 1,500,000

‐ ‐ ‐ ‐ ‐ ‐ Shares issued to seed and round 1 and 2 investors 800,000 800,000 800,000 800,000 800,000 800,000 Shares issued to management ‐ ‐ 115,500 525,000 700,000 700,000 Shares reserved for management earn‐in 350,000 350,000 234,500 ‐ ‐ ‐ Shares reserved for management incentive 350,000 350,000 350,000 175,000 ‐ ‐ Round 1 price per common share 1.7 ‐ ‐ ‐ ‐ ‐ DCF Per share outstanding ‐ 7.3 8.5 9.5 9.1 11 DCF per share fully diluted ‐ 3.9 5.5 7.3 9.1 11

‐ ‐ ‐ ‐ ‐ ‐ 15x P/E share outstanding ‐ ‐ ‐ 5.0 8.6 15.0 15x P/E ful ly diluted ‐ ‐ ‐ 3.9 8.6 15.0

‐ Total value of investors' shares* 1,069,813 3,111,736 4,412,245 5,812,252 7,292,278 9,021,377 Total value of management's shares** 167,794 2,722,769 3,860,715 5,085,720 6,380,743 7,893,705

Fully diluted shares 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

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 at least 65% approval of outstanding shares.

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

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

• Tag provision all shareholders are entitled to participate pro rata in any offer to buy secondary shares.

Key Risks

• Underperformance - If the business plan is underperforming more capital will be needed. In this case the shareholders will decide whether to authorise additional capital or decrease management 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 marketable when 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.

Revenue Model


EURYear of Operations

Model Drivers Y1 Y2 Y3 Y4 Y5 Y6 Y7Deals Closed 2,660 10,620 23,400 36,300 49,200 63,600 78,000 Loans value originated 4,889,706 19,522,059 43,014,706 66,727,941 90,441,176 116,911,765 143,382,353 Year End Outstanding Loans 4,485,091 20,310,859 50,387,882 87,048,352 125,537,004 166,210,778 208,631,628 Total Year‐End Headcount 8 14 25 34 46 57 70

Revenues Y1 Y2 Y3 Y4 Y5 Y6 Y7Origination Fees 146,691 585,662 1,290,441 2,001,838 2,713,235 2,713,235 3,507,353 Loan Servicing Fees 10,700 95,283 324,760 735,846 1,248,028 1,812,894 2,390,441 PPI Fees 5,350 47,642 162,380 367,923 624,014 906,447 1,195,221 Total Revenues 162,742 728,586 1,777,581 3,105,607 4,585,278 6,226,694 7,887,132

Cost Model


Note – Cost model excludes startup costs of EUR 400,000 for purchase of software and establishment of company procedures and processes.

In EURExpenses Y1 Y2 Y3 Y4 Y5 Y6 Y7Credit staff compensation 76,310 167,902 409,063 699,288 1,015,984 1,394,565 1,793,836 Business admin & analysis compens 111,673 115,023 118,474 122,028 153,620 163,982 174,828 Management compensation 134,007 138,028 142,168 297,794 306,728 315,930 325,408 Total Compensation 321,990 420,952 669,705 1,119,110 1,476,331 1,874,477 2,294,071

Credit check fee 18,336 75,404 171,129 273,433 381,721 508,248 642,023 Office Rent 15,882 22,664 42,826 65,082 91,427 121,021 152,308 Office Supplies 1,489 4,881 10,754 16,682 22,610 29,228 35,846 Communication 6,618 9,429 17,844 27,358 38,234 50,441 63,741 IT Systems 42,647 31,412 42,986 47,412 46,333 44,722 59,926 Marketing 110,294 275,735 295,823 421,030 577,237 747,988 899,015 Travel 4,963 5,112 5,265 5,423 5,586 5,754 5,926 Legal 27,574 12,868 13,254 13,651 14,061 14,483 14,917 Accounting 3,676 3,787 3,900 4,017 4,138 4,262 4,390 Supervisory Board 9,191 9,467 9,751 10,043 10,345 10,655 10,975 Total Other Expenses 240,671 450,758 613,533 884,132 1,191,692 1,536,801 1,889,066

Total Expenses 562,661 871,710 1,283,238 2,003,242 2,668,023 3,411,278 4,183,137

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


Disclaimer

• This document has been prepared by Symfonie Capital Investment Management LLC (“Symfonie Capital”) for persons reasonably believed by Symfonie Capital to be persons of the categories to whom Symfonie Capital are permitted to communicate financial promotions. This document does not constitute or form part of any offer or invitation to sell, or the solicitation of an offer to subscribe or purchase any investment. Symfonie Capital believes that the information it provides is accurate as at the date of publication, but no warranty of its accuracy or completeness is given and no liability in respect of errors or omissions is accepted by Symfonie Capital or any partner or employee of Symfonie Capital. Past performance is not necessarily a guide to future performance.

• This presentation is for illustration and discussion purposes only and is not intended to be, neither should it be construed or used as, financial, legal, tax or investment advice nor an offer to sell, nor a solicitation of any offer to buy, an interest in any of the funds managed by Symfonie Capital (the “Funds”). None of the Funds have shares registered under the U.S. Securities Act of 1933, as amended.

• This presentation is as of the date indicated and subject to change without notice.• Any indications of interest from prospective investors in response to this material involves no obligation or commitment of any kind.

Subscriptions can be made only on the basis of a Confidential Offering Memorandum to qualified investors. The investment objectives and methods summarized in this document represent our current focus and intentions.

• There is no assurance that Symfonie Capital or the Company will achieve its objectives. Investors may lose money upto the full value of their investments. No representation is made that the Company will achieve its objectives or that any investor will or is likely to achieve results comparable to any that may be shown. There can be no assurance that any investor will make any profit at all or will be able to avoid incurring substantial losses. Past performance is no guarantee of future results.

• This presentation does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. Before making any investment, you should thoroughly review the the Company’s Confidential Offering Memorandum with your financial and tax advisor to determine whether an investment in the Company is suitable for you in light of your financial situation.

• This presentation is subject to revision and updating. Certain information has been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. This presentation is confidential, is intended only for the person to whom it has been delivered and under no circumstance may a copy be shown, copied, transmitted, or otherwise given to any person other than the authorized recipient. Symfonie Capital is solely responsible for the content herein.

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