2. Introduction To Bayport Management Ltd
2
Notes:
(1) Unless otherwise noted, metrics in this presentation are as at 30 September 2015
(2) Currently licensed for deposit-taking in Ghana, Zambia and Mozambique
(3) For definitions please see page 36
Bayport is a provider of credit, insurance and transactional banking solutions to individuals and micro businesses in
emerging and frontier markets
Currently engaged in lending to individuals in seven markets in Africa and two markets in Latin America
Gross loan book of US$863 mln1 comprising loans outstanding to 557 K borrowers1
414.9 K lives insured1, with 9M 2015 Gross Written Premium of US$25.3 million
Established in 2001, Bayport is managed by the two founders collectively possessing over 35 years of consumer
finance experience…
The founder joint CEOs beneficially own 17.8% of Bayport
…capably aided by the group senior management team…
14 group executives from various cultures and backgrounds with the average tenure with the company of 5 years
Strong alignment of interest with the shareholders through KPIs-based performance pay and 1% equity
ownership
…with the business driven locally by time-tested partners
Local management and key partners own between 5% and 40% of the local subsidiaries in eight (out of nine)
markets
Demonstrated track record of profitable growth…
Gross Loans 2010-2014 CAGR 71%
Revenue (Operating Income) 2010-2014 CAGR 29%
Average ROAE 2010-2014 of 28.3%
…achieved through a balanced mix of organic growth, greenfield expansion and disciplined acquisitions
Robust and unique business model…
Extensive footprint with 406 branches in Africa and 64 branches in Latin America, with many branches suited for
the delivery of a broader range of financial solutions
Origination effort led by 5,115 agents, aided by outbound call centres
Responsible lending of (typically) 48-60 month instalment loans with the centrally managed credit underwriting
function and rigorously enforced monthly payment affordability thresholds
Relying for repayments on the payroll deduction at source in eight (out of nine) markets and on debit order
collection in South Africa
Top-line synergies from insurance cross- and up-sell enhance profitability
Demonstrated track record of entering new markets in a disciplined fashion, “exporting the business model” and
scaling the business (since 2011: Colombia, Mozambique and Mexico)
Successful launch of the MyMoney modern transactional banking solution expected to drive customer loyalty
and retention while laying the foundation for off-payroll, relationship-based lending and deposit funding2
…provides the basis for further organic growth in the under-penetrated markets where Bayport is present, as well as
attractive new markets…
…with robust equity structure and established track record of access to debt markets ensuring sufficient funding for
future growth
Marquee institutional shareholders comprising the PIC (the largest asset manager in Africa), Helios, Kinnevik
Borrowing relationships with the IFIs, including the IFC, OPIC, IDB and KfW (via the ALCB Fund)
Four senior unsecured and subordinated bond issues in the European markets since 2010, with the aggregate
issuance volume of US$439 million equivalent
Securitisation programme in South Africa since 2011
Local-currency bond issues and credit facilities
Source: Company information
1 Total shareholders’ equity;
2 9M 2015 Net interest income and 9M 2015 Net income annualised to calculate net interest margin and
RoAA, RoAE, respectively;
Note: Net interest margin = net interest income / average gross loans; cost-to-income = operating
expenses / revenue
Summary key financial metrics
Directors
and
founders
18% PIC
21%
Helios Investment Partners
18%
Investment AB Kinnevik
24%
Local management /
partners/ other
19%
Current shareholding structure
US$ mln (unless otherwise specified) 2014 9M Sep-15
Net loans 864.6 752.2
Borrowings 833.9 712
Shareholders equity¹ 225.9 219.1
Net interest income 189.5 124.9
Operating income (Revenue) 255.4 162.3
Net income 52.1 27
Net interest margin (%)² 20.3% 17.7%
Cost-to-income ratio (%) 54.5% 61.5%
Equity to total assets (%) 19.8% 21.2%
RoAA (%)2
5.0% 3.3%
RoAE (%)² 22.6% 16.2%
3. Bayport has a unique pan sub-Saharan African footprint and a growing Latin
American presence
3
Bayport's geographic footprint Segment reporting
Colombia
Mexico
South Africa
Ghana
Mozambique
Botswana
Zambia
Tanzania
Uganda
Source: Company information
1Net interest income annualised to calculate the net interest margin
2Net interest margin = net interest income / average gross loans
Key comments
MyMoney transactional banking & off-payroll lending
pilot scaling up in Ghana
MyMoney to be rolled out in Mozambique in 2016
Deposit-taking pilot starting in Zambia in December 2015
Robust loan book growth in Zambia, Ghana, Colombia &
Tanzania
Mozambique and Mexico offer high growth potential
Business reengineering and rejuvenation and cost
containment in South Africa
Southern Africa,
63.2%
West Africa,
11.0%
East Africa,
12.9%
Latin America,
12.9%
Net Loans
Southern Africa West Africa East Africa Latin America
Southern Africa,
67%
West Africa, 11%
East Africa, 14%
Latin America, 8%
Revenue, 9M 2015
Southern Africa West Africa East Africa Latin America
As of 9M to Sep ‘15 (US$ mln)
Southern
Africa
West Africa East Africa Latin America
Net interest income 76.5 20.5 15.9 11.3
Operating Income (Revenue) 105.7 22.3 17.3 13.4
Gross Loans 589.6 97.1 83.8 94.6
Net loans 449.4 91.3 78.4 91.4
Total assets 563.8 102.9 85.4 129.2
Shareholder's Equity 128.9 24.7 20.6 6.0
Shareholder loans 117.7 49.9 51.1 73.3
Borrowings 291.2 17.0 11.3 41.6
Total Liabilities 434.9 78.3 64.8 123.2
Net interest margin (%)12
11.8% 21.9% 18.3% 11.8%
Equity to total assets (%) 22.9% 23.9% 24.1% 4.7%
For definitions please see page 36
As At 30 September 2015
4. Geographic Overview
4
2001
557k customers
8 080 total employees, of
which
5,115 sales force
470 branches
US$1,758 average loan
amount
41 months average loan term
2003/2006
Focus: Mining sector
and civil service
133K customers
1,755 employees, of which
1,206 sales force
56 branches
Net loan book US$91m
Average Loan Term – 40
YTD Average Loan Size at
Disbursement – US$810
YTD Average Monthly Number
of Loans Disbursed – 4,581
YTD Average Monthly Cash
Disbursements – US$3.4m
2011
Focus: Civil service
22K customers
787 employees, of which
540 sales force
29 branches
Net loan book US$72m
Average Loan Term – 56
YTD Average Loan Size at
Disbursement – US$4,467
YTD Average Monthly Number
of Loans Disbursed – 1,174
YTD Average Monthly Cash
Disbursements - US$3.9m
2014
Focus: Civil service
17K customers
367 employees, of which
211 sales force
35 branches
Net loan book US$19m
Average Loan Term – 34
YTD Average Loan Size at
Disbursement – US$1,376
YTD Average Monthly Number
of Loans Disbursed – 1,253
YTD Average Monthly Cash
Disbursements - US$1.3m
2012
Focus: Civil service
16K customers
567 employees, of which
418 sales force
12 branches
Net loan book US$33m
Average Loan Term – 56
YTD Average Loan Size at
Disbursement – US$1,995
YTD Average Monthly
Number of Loans Disbursed
– 1,403
YTD Average Monthly Cash
Disbursements - US$2.6m
2014
Focus: Public and private
sector
170K customers
2,298 employees, of which
1,268 sales force
94 branches
Net loan book US$250m
Average Loan Term - 31
YTD Average Loan Size at
Disbursement - US$1,946
YTD Average Monthly Number
of Loans Disbursed – 3,866
YTD Average Monthly Cash
Disbursements - US$6.2m
2006
Focus: Civil service
57K customers
1 061 employees, of which
792 sales force
125 branches
Net loan book US$54m
Average Loan Term –51
YTD Average Loan Size at
Disbursement – US$766
YTD Average Monthly
Number of Loans Disbursed
– 4,498
YTD Average Monthly Cash
Disbursements - US$2.0m
2004
Focus: Civil service
38K customers
500 employees, of which
272 sales force
41 branches
Net loan book US$24m
Average Loan Term – 55
YTD Average Loan Size at
Disbursement – US$926
YTD Average Monthly
Number of Loans Disbursed
– 678
Average Monthly
Disbursements – US$337k
2002
Focus: Mining sector
and civil service
94K customers
367 employees, of which
240 sales force
64 branches
Net loan book US$128m
Average Loan Term – 34
YTD Average Loan Size at
Disbursement – $2,217
YTD Average Monthly Number
of Loans Disbursed – 6,228
YTD Average Monthly Cash
Disbursements – US$9.0m
(1) Employees include agents
(2) Unless otherwise noted, metrics in this presentationare as of 30 September 2015
(3) For definitions please see page 36
(4) The dates and percentageson this page refer to equity interest owned by Bayport Management Ltd and year of the market entry
2010
11K customers
246 employees, of which
168 sales force
14 branches
Net loan book US$38m
Average Loan Term - 54
YTD Average Loan Size at
Disbursement - US$4,115
YTD Average Monthly Number
of Loans Disbursed – 1,168
YTD Average Monthly Cash
Disbursements - US$1.8m
90%/74%
83%
99.96%
60%
85% 89%
95%
100%
95%
Bayport
Management Ltd
5. History And Development
5
2001
BML incorporated in BVI
Seed funding from Brait SE
2002
2003
2004
2005
2006
2007
2008
Bayport South Africa establishes BaySec
Securitisation programme
2010
Moneyquest (Pty) Ltd starts trading as Bayport Botswana following
BML purchase of majority of shares
Investment AB Kinnevik becomes largest shareholder with 31.39%
ownership
BML issues debut bond in Sweden for SEK 700m
2011
Bayport enters Latin American market with majority acquisition of
FiMSA S.A., now Bayport Colombia.
BaySec securitization programme is listed on the Johannesburg
Stock Exchange.
2012
KfW lends BML subordinated debt finance
Bayport Mozambique incorporated
Investment AB Kinnevik increases ownership to 46.1%
BML sets up a Mezzanine note programme in Sweden
BML issues second bond in Sweden of SEK 700m
2013
Long term incentive plan (LTIP) for key management established
BML listed “by way of introduction” on Stock Exchange of Mauritius
Helios Investment Partners invests USD 100m to acquire 23% of
BML thus enabling the 100% acquisition of Bayport South Africa
BML issues third bond of SEK 600m in Sweden
Acquisition of Bayport South Africa
2014
BML taps third bond with an additional nominal of SEK 200m in
Sweden
BML issues SEK 650m subordinated debt in Sweden
Majority shares in Financiera Fortaleza acquired in Mexico
BML changes year end from March to December
MyMoney & micro lending launched in Ghana
2015
PIC invests $149m for 20.81% of BML
Landmark US$250 mln 7 yr credit facility approved by OPIC
Record US$50 mln, 5yr credit facility led by the Inter-
American Development Bank obtained by Bayport
Colombia
SMART Campaign certification obtained by Bayport
Botswana
BML issues bond of SEK 1.1bn in Sweden
First lending operation in Zambia established to
service mineworkers on the Copper Belt
Bayport enters West Africa by opening in Ghana
Bayport Uganda incorporated
Bayport South Africa starts trading (outside of the
BML group)
BML migrates from BVI to Mauritius
Bayport Tanzania incorporated and CFC (Ghana)
acquired
Management buyout of Brait SE
South AfricaZambia Ghana TanzaniaUganda Botswana MozambiqueColombia Mexico
20132002 2003 20062004 2010 20122011 2014
Market entry
6. Bayport has a unique focus on the attractive segment of
lending to individuals in frontier & emerging markets
6
Presence focused on highly attractive and rapidly growing markets
Unique combination of a regional network yet with a local presence
High growth, high margin operations
Strong risk management policies
Visionary & experienced management team
1
2
3
4
5
7. Presence focused on highly attractive and rapidly growing
markets
7
Real GDP growth (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0% SouthAfrica
Mexico
Colombia
Uganda
Botswana
Zambia
Tanzania
Mozambique
Ghana
CEE
EMAsia
World
2011-2015 2016-2020F
The regional growth rates represent the real GDP growth (%) for all countries in the category weighted by 2015 real GDP (US$ mln); CEE consists of
Bulgaria, Czech Republic, Hungary, Poland, Romania and Turkey; EM Asia consists of Indonesia, Malaysia, Philippines, Thailand and Vietnam
Bayport’s markets have shown strong growth which is expected to be sustained
over the medium term
1
Source: IMF, World Bank
8. Sustained growth in SSA has led to a sharp rise in the bankable
population
8
Source: IMF, World Economic Outlook database, Financial Access Survey database, World Bank, FinScope, UNCTAD, McKinsey Global Institute
1 GDP per capita based on purchasing-power-parity (“PPP”); 2 Household income brackets (based on PPP): consuming middle class (US$10,000-$20,000), emerging consumers (US$5,000-10,000), disposable income households
(>US$5,000); 3 As measured by FinScope and includes formal and informal banking services; 4 Based on adult (age 18+) population
(4%)
(2%)
0%
2%
4%
6%
8%
10%
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14E '15E '16E
GDPpercapita1growth(%chg)
Sub-Saharan Africa Advanced economies
18 27
41
29
41
56
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
2000 2008 2020F
%oftotalhouseholds
Households(mm)
163 196 244
Consuming middle class² (LHS)
Emerging consumers² (LHS)
Disposable income households² (RHS)
# Total households (mm)
36%
43%
52%
289
311
377
556
43
61 61
115
4 5 6 7
2004 2007 2010 2013
Deposit accounts (per 1,000 adults)
Loan accounts (per 1,000 adults)
Bank branches (per 100,000 adults)
86%
73%
67%
54%
75%
72%
85%
73%
South Africa
Namibia
Botswana
Malawi
Kenya
Rwanda
Uganda
Tanzania
62%
48%
54%
45%
67%
47%
70%
44%
% of banked population4
(2014)
(2011)
(2009)
(2014)
(2013)
(2012)
(2013)
(2013)
(2004)
(2007)
(2004)
(2008)
(2010)
(2009)
(2009)
(2009)
Countries in which Bayport operates
Consistent growth in SSA’s GDP per capita over the last decade… Commercial bank accounts & branches in SSA have risen in the past
decade
…has led to a fast growing middle-class and higher disposable
incomes in SSA
Financial inclusion3 in several key SSA economies had also increased
1
9. Significant sector growth potential exists in SSA, given low banking
penetration, rapid growth of mobile money and the informal banking and
unsecured lending sectors ready for transformational change
9
Nigeria
South
Africa
Angola
Kenya
GhanaTanzania
DRC
Cameroon
Zambia
Uganda
Gabon
Senegal
Botswana
Republic of Congo
Chad
Zimbabwe
Mozambique
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
-10% 0% 10% 20% 30% 40% 50% 60%
Depositswithcommercialbanksin2013(%ofGDP)
Formally banked adult population¹ (%)
Source: IMF, Financial Access Survey database, World Bank, Global Financial Development Indicators, Demirgüç-Kunt and Klapper (2012), African Development Bank
1 As measured by the World Bank and is the percentage of population older than 15 years with an account at a formal financial institution (e.g. bank, credit union, microfinance institution, post office, etc)
0%
Bubble size = Population in 2013
2,535
1,846
1,546
1,119
850
681
556
692
501
284
542
178 190
115
Advanced
economies
CEE CIS Latin
America
& Caribbean
Developing
Asia
MENA SSA
Deposit accounts (per 1,000 adults) Loan accounts (per 1,000 adults)
Countries in which Bayport operates
Banking penetration of major SSA economies, 2013 Commercial bank accounts by region (2013)
1
10. Regional network, local presence
Local partners and management are
true champions of the brand and
business
Local wisdom is critical to our success
Local partnership is rare
Reflects our confidence to lead rather
than to follow
The countries’ people are in the
business
Work with the regional executives
Entrepreneurial interests are very
aligned
Group holding company
Manages the various regulatory, funding,
treasury and governance functions across
the group
Driver of the Bayport business philosophy
and ethos as encapsulated in the
“Bayport Way”
Keeper of the medium- and long-term
strategies
Defines the framework and sets the
general agenda
Guides and sets up for success
Operational and function support for the in-country operations
Initiated and implements group wide policies, technology, operational best practice and other initiatives
Four areas of excellence
1. Optimisation
Group Finance
Group Credit
Group Modeling and
Business Intelligence
Group Internal Audit
Group Risk
Management
3. Corporatisation
Strategy development
Product development
Geographic development
Debt and Capital Markets
Investor relations
Mergers & Acquisitions
2. Innovation
Information Technology infrastructure,
design, deployment and support
Information Technology governance and
security
Information Technology operations and
service management
Business Platform development and support
Business Change and Project Management
4. Harmonisation
Brand, Marketing and Communications
Human Capital and Performance Management
Learning and Development
Group Collaborations
Integrated Reporting
Financial Wellness
Operations best practice
Lending and Collecting
10
Bayport
Management
Limited
Local
Partnerships
Bayport International
Group Support (BIGS)
2
For definitions please see page 36
11. 9M 2015
New loans issued 9M ‘15,
US$ mln
56.1 16.4 81.1 23.3 18.3 3.0 30.4 35.0 12.0 275.5
Average loan amount
advanced Q3 ‘15 (US$)
1,698 3,882 2,138 1,892 502 863 760 4,362 1,347
Average loan term at
disbursement Q3 ‘15,
months
29 54 37 57 53 55 39 62 34
# of loans 000’s 211.4 11.5 101.5 18.2 62.6 38.6 132.9 22.8 16.7 616.2
# of active clients, 000’s 170 11 94 16 57 38 133 22 17 557
Loan yield, % 28.0%* 38.7% 38.9% 38.4% 39.7% 43.3% 50.0% 31.7% 46.7% 29.5%
Gross loans, US$ mln 380.9 40.8 130.2 33.2 57.0 28.1 98.2 74.7 20.3 864
Net loans, US$ mln 250.3 38.3 128.1 32.7 54.4 24.1 91.3 72.1 19.3 710
LLR to gross loans1
, % 38.2% 5.9% 1.6% 1.5% 4.8% 13.3% 6.9% 3.5% 5.0% 17.6%
NPL Coverage Ratio2
, % 149.7% 88.4% 69.8% 165.2% 70.0% 82.5% 76.9% 51.9% 84.3% 130.9%
NPL ratio3
, % 25.5% 6.6% 2.2% 0.9% 6.8% 16.1% 9.0% 6.7% 5.9% 13.5%
Collection rates4
, % 77.8% 93.3% 96.7% 90.8% 94.4% 80.4% 93.1% 87% 91.9%
Seasoning5
29.0 10.5 11.0 6.4 15.7 20.7 17.5 14.8 5.9
High growth, high margin operations: Cross section of
operations
11
South Africa Zambia GhanaTanzania UgandaBotswana Mozambique Colombia Mexico
3
1. Average loan loss provisions/Gross loans for quarter
2. Average loan loss provision/Non-performing loans for quarter
3. Average non-performing loans/Gross loans for quarter
4. Actual collections for the quarter/Due to be collected for the quarter
5. Seasoning refers to the weighted average months on book
* South African loan book does not include the written-off loans
For definitions please refer to page 36
Total
12. High growth, high margin operations
12
3
Gross Loan Book Margin Evolution1
Revenue vs. Cost Evolution (US$ mln)2
# Of Loans Outstanding
1. Effective Loan yield = Revenue for the period/Average Gross Advances
2. Revenue and costs for 2014 and 2015 normalized at average 2013 FX rates
For definitions please see page 36
Note: gross loans converted at YE 2013 exchange rates in order to eliminate
the currency depreciation effect across all countries of Bayport’s operations
429
1,119
1,316
0
200
400
600
800
1,000
1,200
1,400
2013 2014 9M 2015
US$ mln
For illustrative purposes only
For illustrative purposes only
31.5%
27.3%
23.1%
12.5%
13.9% 13.5%
28.0%
20.3%
17.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2013 2014 9M 2015
Effective Loan Yield Cost of funds Net Interest Margin
13. Strong Risk Management Policies - Payroll Loan Book
Recency as a % of Gross Payroll
Loan Book
Arrears and Recency (Stacked)
Balance in Arrears as a % of
Gross Payroll Loan Book
13
Recency Quarterly Vintage Analysis
DPD 90 + Quarterly Vintage Analysis
Notes:
1Unless otherwise noted all metrics in this presentation are as at 30 September 2015
2Balance in arrears includes loan principal plus any accrued interest & fees
3Value in arrears includes loan principal only and is an approximate value based on a one month first cycle collection delay
4For all vintages denominator value is equal to original principal debt (“OPD”) and numerator value is equal to loan principal plus recognised but not received interest & fees
5Recency classification means last payment exceeding three months ago
Estimated Total Value in Arrears as % of Gross Loan Book: 7.02%
4
For definitions please see page 36
14. Strong Risk Management Policies Cont’d – Payroll Loan Book
Consolidated Payroll Business Performance based on Arrears & Recency YE ‘14 & Sep ‘15 (Stacked)
14
Note: Unless otherwise noted, metrics in this presentation are as at 30 September 2015 excluding Mexico
4
Considerable improvement YTD in the DPD 60-89 and DPD 90+ buckets
Stable quality YTD in the DPD 0-29 and DPD 30-59 buckets
For definitions please see page 36
15. Strong Risk Management Policies Cont’d – Payroll Loan Book
NPL Recovery Analysis by Disbursements- % of Total Loans (Volume)
NPL Recovery Analysis by Disbursements- % of Total Loans
(Volume Stacked)
Remaining NPL Loans by Disbursements - Split by Administrative reasons & Credit Risk (Stacked)
15
4
NPLs arising due to the payroll-related administrative reasons tend to be cured over time
Strong recovery profile of the NPLs driven by the efficient collection practices
For definitions please see page 36
Note: Unless otherwise noted, metrics in this presentation are as at 30 September 2015 excluding Mexico
16. Highly skilled management team
16
5
Source: Company data
Industry experience Experience at Bayport
David Rogers
Chief Innovation Officer
Bryan Arlow
CEO of South Africa
Stuart Stone– Joint Chief Executive Officer
Co-founder of Bayport in 2001
Founded Credit Direct (JV with African Bank Limited)
15+ 14
Grant Kurland – Joint Chief Executive Officer
Co-founder of Bayport in 2001
Worked with Stuart at Credit Direct and African Bank Limited (Head of Sales)
15+ 14
John White
Chief Harmonisation
Officer
Christo Koch
Group Finance
Executive
215
Ted Kristensson
Group Executive:
Latin America &
Corporate Affairs
37
Paul Rodgers
Head: Strategy &
Research
320
Stephen
Williamson
Group Executive:
Finance & Risk
8 7
Key Management Team Years in Industry Years at Bayport
619
David Rajak
Head: Capital
Markets
Ettienne
Myburgh
Head: Insurance
219
Etienne
Coetzer
Head: East Africa
1415
Paul Silverman
Group Executive:
Southern & West
Africa
618
Sandro
Rtveladze
Group Head:
Retail Banking
6
315 2221119
1
Pablo Montesano
Group Executive:
Mexico
118
18. South Africa
Shareholders
18
Zambia GhanaTanzania UgandaBotswana Mozambique Colombia Mexico
83% 95% 95% 89% 85% 90% 99.96% 60% 100%
CFC Ghana
74%
PIC
21% of BML
Local Management/
Partners/Other
19% of BML
Directors &
Founders
18% of BML
Helios Investment
Partners
18% of BML
Investment AB
Kinnevik
24% of BML
Equity interest owned by
Bayport Management Ltd
19. 9M 2015 Highlights1
19
Operating Income (Revenue) US$162.3 mln, down 16% y-o-y (up 4.8% y-o-y net of FX impact)
Net Income US$27.0 mln, down 34% y-o-y (down 21.3% y-o-y net of FX impact)
Annualised ROAA2 3.1%, annualised ROAE2 15.1%
Robust performance despite continuing FX headwinds; the Bayport FX Index3 down 12.8% for 9M 2015
Resilient
Performance
9M 2015 loan disbursements (issued cash) US$275.5 mln, down 7.4% y-o-y (up 10.9% y-o-y net of FX
impact)
Gross Loans down 12.9% YTD (up 14.6% YTD at YE’14 FX rates)
46,086 new borrowers acquired YTD, compared to 268,958 new borrowers acquired in 9M 2014
4,766 active4 MyMoney users as at 30 September 2015, up from 557 as at YE 2014
Growth
Key metrics impacted by FX headwinds
Annualised NIM 17.7%, down 280 bps y-o-y
Blended Cost Of Funds5 13.5%, down 40 bps y-o-y
Cost/Income Ratio 61.5%, up from 51.2% in 9M 2014
Operating Leverage -17%, as compared to 13.8% in 9M 2014
Core Profitability
& Operational
Efficiency
Cash & Equivalents US$107.8 mln as at 30 September 2015, or 10.3% of Total Assets, up 64% YTD
Undrawn credit facilities US$43.5 mln as at 30 September 2015
Landmark US$250 mln 7 year credit facility approved by OPIC
Record US$50 mln 5 year credit facility led by the Inter-American Development Bank obtained by Bayport
Colombia
The Public Investment Corporation (www.pic.gov.za), the largest asset manager in Africa acquired (in
June 2015) a 21% equity interest in Bayport Management Limited for the gross consideration of
US$149 mln
Liquidity &
Capitalisation
Mexico is scaling up well; payroll codes for 1 million individuals obtained
NovaLend, the new proprietary IT platform, ready for soft launch in Botswana and Colombia
SMART Campaign certification obtained by Bayport Botswana
Other
Developments
1All figures in US$ unless otherwise noted.
2Annualised.
3The Bayport FX Index is an index that tracks the relative currency movements of the countries that Bayport is exposed to, weighted by the size of gross loan book in each country
4An active user is an individual who has signed up for an account and deposited funds into his/her account
5 Blended cost of funds equals interest expense for the period divided by average interest-bearing liabilities for the period
For definitions please see page 36
20. 9M 2015 Financial Overview
20
Total Operating Income (Revenue)
US$162 million
- 15.9% y-o-y
+ 4.8% y-o-y at the average 9M ‘14 FX rates
9M 2014: US$193 million
Net Operating Income
US$132 million
+5.9% y-o-y
+34.1% y-o-y at the average 9M 2014 FX rates
9M 2014: US$124 million
Profit Before Provisions
US$69 million
-42.5% y-o-y
-30.6% y-o-q at average 9M 2014 FX rates
9M 2014: US$118 million
Net Income
US$27 million
-34.2% y-o-y
-21.3% y-o-y at the average 9M ‘14 FX rates
9M 2014: US$41 million
Return On Average Equity
15.6%
9M 2014: 24.69%
Return On Average Assets
3.3%
9M 2014: 6.1%
Cost to Income Ratio
61.5%
9M 2014: 51.2%
Leverage (Times)
3.72x
YE ‘14: 4.05x
Cost Of Risk
4.3%
9M 2014: 9.9%
Gross Loans
US$863 million
-13% YTD
YE 2014: US$991 million
+16% YTD at YE 2014 FX rates
Net Loans
US$752 million
-13% YTD
YE 2014: US$817 million
+18% YTD at YE 2014 FX rates
Liquid Assets*
US$107.8 million
+64% YTD
YE 2014: US$65.8 million
+74% YTD at YE 2014 FX rates
Branches
470
+7.3% YTD
YE 2014: 438
Number Of Agents
5,115
+21.5% YTD
YE 2014: 4,209
Number Of MyMoney Users
4,766**
+756% YTD; YE 2014: 557
Number Of Borrowers
557,135
+9.0% YTD; YE ‘14: 511,049
Number Of Loans
616,343
YE ’14: 581,579, +6.0% YTD
Number Of Loans Excluding South Africa:
404,898
YE ‘14: 334,461, +16.1% YTD
Number Of Loans Disbursed:
209,189
9M 2014: 213,238, -1.9% y-o-y
Number Of Loans Disbursed Excluding South
Africa: 174,394
9M 2014: 150,826, +15.6% y-o-y
* Liquid assets include cash balances with banks
** c. 20 K as of Nov ‘15For definitions please see page 36
21. Diversified Portfolio
21
Revenue Split By Country (US$ ‘000s) Revenue Split By Country
YE 2014 9M 2015
New Loans Issued Gross Loan Portfolio Split By Product
YE 2014 9M 2015
Payroll Loans,
52%
Unsecured
Consumer
Loans (South
Africa), 47%
344,275 loans outstanding
237,304 loans outstanding
South Africa,
53.7%
Zambia, 13.0%
Botswana, 3.1%
Mozambique,
0.5%
Tanzania, 7.4%
Uganda, 4.4%
Ghana, 11.8%
Colombia, 5.9% Mexico,
0.2%
South Africa, 39.1%
Zambia, 19.8%
Botswana, 4.5%
Mozambique, 3.3%
Tanzania, 6.8%
Uganda, 4.1%
Ghana, 14.0%
Colombia, 5.7%
Mexico, 2.7%
For definitions please see page 36
55 54 56
69
97 95
106 100
92 86
98
45
38 39
46
75
69
71
63
66
64
79
0
10
20
30
40
50
60
70
80
90
-10
10
30
50
70
90
110
130
150
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
'000sUS$ mln
Loans issued by value (LHS) Loans issued by number (RHS)
22. Operating Efficiency Has Stabilised
22
Structure Of Operating Expenses Cost/Income Ratio
Funding Costs, Operating & Provision
Expenses
Cost to income ratio deterioration a
consequence of young businesses
not yet at scale and the FX impact
* Q4’14 Cost to Income Ratio normalised for one-off US$4.2 million provision of bonuses
37.2 33.9
10.3 13.5
51.2 52.4
9M '14 9M '15
Personnel costs Sales & marketing Other expenses
98.7 99.8
US$ million
12.6 12.1 12.4
16.8
12.7
9.0
12.2
3.5 3.2 3.6
5.9
4.0
4.3
5.2
16.9 16.8 17.5
17.8
17.4
17.4
17.6
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3'15
33 32 34
41
34
31
35
For definitions please see page 36
76 81
41 21
99
100
9M '14 9M'15
US$ million
24 26 26 28 27 27 26
20 21
27 27
13 9 9
33 32
34
41
34
31 35
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3'15
Funding costs Provision Expense Operating Expenses
23. Lower Cost Of Risk And Conservative Asset Quality Management
23
NPLs As % Of Gross Loans (excluding South
Africa)
Gross Loan Book Split By Aging (SA)
Cost Of Risk (excluding South Africa)
Cost Of Risk (South Africa)
For definitions please see page 36
24. Portfolio Statistics
223,643 loans issued in 9M 2015
Total loan disbursements (cash issued) in 9M 2015 – US$275.5
million (-7.4% y-o-y)
616,343 loans outstanding as at 30 September 2015
Gross loans reached US$863 million
Net loan book reached US$752.2 million as at 30 September
2015
Average loan size at disbursement varies from US$744 in Ghana
to US$4,467 in Colombia
51% of the 9M ’15 loan disbursements consist of loans below
US$1,000
Average tenor at disbursement varies by country from 31 to 56
months
24
Net Loan Book By Country, Q3 ‘15Summary
Number of Loans Outstanding per
Country
Portfolio Split By Average Loan Amount
at Disbursement %/US$, Q3 ‘15
For definitions please see page 36
25. Product Overview
25
Payroll Loan Unsecured Consumer Loan
South AfricaZambia GhanaTanzania UgandaBotswana Mozambique Colombia Mexico
Term Up to 84 months Up to 60 months
Topical Use Education, Housing, Small Business Education, Housing, Loan Consolidation
Fee Initiation fees
Credit life insurance
Initiation fees
Credit life insurance
Monthly service fees
Size Average loan size at disbursement of US$
1,724 during 9M to September 2015
Average loan size at disbursement of US$
1,946 during 9 months to September 2015
Repayment Payments deducted at source (payroll)
before the borrower receives the net salary
Payments deducted directly from borrowers
bank account
Markets Zambia, Ghana, Tanzania, Uganda,
Botswana, Mozambique, Colombia, Mexico
South Africa
Share in total
portfolio
56% of gross loan portfolio as of Q3 ‘15 44% of gross loan portfolio as of Q3 ‘15
For definitions please see page 36
26. Financial Overview – 9M 2015 Income Statement
26
For Illustrative Purposes Only
Summary Unaudited 9M 2015 Income Statement (9M
‘15 Numbers Converted At 9M ‘14 Average Exchange
Rates)
Summary Unaudited 9M 2015 Income Statement
Constant currency variance reflects the results on a constant currency basis excluding the impact of the strengthening US$ dollar against
the relevant African, Latin American and European (SEK) currencies year over year (i.e. reflects the operational performance variance).
Excluding the currency impact, the variance from 9M 2014 to 9M 2015 net profit would only have been negative US$8.7 million.
US$ 9M 2014 9M 2015 Growth y-o-y
Interest income 217,868,085 205,471,317 -5.7%
Interest expense (76,245,998) (80,607,272) 5.7%
Net interest income 141,622,087 124,864,045 -11.8%
Net non-interest income 51,402,842 39,560,502 -23.0%
Operating income 193,024,932 162,277,717 -15.9%
Operating expenses (98,749,736) (99,841,674) 1.1%
Foreign exchange G/L 36,574,067 5,463,904 -85.1%
Pre-provision income 118,173,115 67,900,070 -42.5%
Net impairment of loans and advances (68,032,045) (29,908,499) -56.0%
Movements in carrying value of written off book 18,261,327 (5,456,226) -129.9%
Net impairment of goodwill (12,676,148) - -100.0%
Profit/(Loss) before taxation 50,141,070 37,991,571 -24.2%
Taxation (9,084,711) (10,988,474) 21.0%
Profit/(Loss) for the year 41,056,359 27,003,097 -34.2%
Profit/(Loss) for the period attributable to:
Owners of the company 40,607,408 28,210,666 -30.5%
Non-controlling interest 448,951 (1,207,569) -369.0%
US$ 9M 2014 9M 2015 Growth y-o-y
Interest income 217 868 085 245 456 971 12.7%
Interest expense (76 245 998) (89 049 710) 16.8%
Net interest income 141 622 087 156 407 261 10.4%
Net non-interest income 51 402 842 45 800 853 -10.9%
Operating income 193 024 932 202 208 114 4.8%
Operating expenses (98 818 472) (120 726 537) 21.8%
Foreign exchange G/L 36 574 067 1 189 463 -96.7%
Pre-provision income 118 173 115 81 961 966 -30.6%
Net impairment of loans and advances (68 032 045) (34 647 835) -49.1%
Movements in carrying value of written off book 18 261 327 6 181 561 -66.1%
Net impairment of goodwill (12 676 148) -100.0%
Profit/(Loss) before taxation 50 141 070 47 314 131 -5.6%
Taxation (9 084 711) (14 998 992) 65.1%
Profit/(Loss) for the year 41 056 359 32 315 139 -21.3%
Profit/(Loss) for the period attributable to:
Owners of the company 40 607 408 28 407 809 -30.0%
Non-controlling interest 448 951 3 907 331 770.3%
For definitions please see page 36
28. Financial Overview – Key Ratios
28For definitions please see page 36
Loan Book Performance Sep-14 Sep-15
No of new loans issued 213,238 223,643
New loans issued (US$ mln) 297.9 275.5
Loan book growth in local currency (%)
South Africa 4.8% -2.2%
Botswana 16.4% 14.5%
Mozambique 236.6% 230.6%
Zambia 30.7% 37.5%
Tanzania 11.8% 23.3%
Uganda 30.1% 7.8%
Ghana 35.0% 26.6%
Colombia 34.1% 15.1%
Mexico 96.3%
New loans issued/gross loans (e-o-p) 0.27 0.32
Average loan size (US$)
Payroll 1785 1724
Non-payroll 1845 1946
Average loan term (months)
Payroll 39.1 43.3
Non-payroll 37.3 31.5
Non performing loan ratio (%)
Payroll 5.1% 6.0%
Non-payroll 37.3% 25.5%
LLR to gross loans (%)
Payroll 2.9% 4.4%
Non-payroll 28.7% 38.2%
Non performing loan coverage (%)
Payroll 57.1% 74.0%
Non-payroll 76.9% 149.7%
Net loans/total assets (%) 83.1% 72.7%
Total equity/total assets (%) 22.2% 21.2%
Operating Metrics 9M 2014 9M 2015
No of branches 412 470
Branch growth, y-o-y (%) 93.00% 14.1%
No of agents 4,641 5,115
Agent growth, y-o-oy (%) 93.40% 10.2%
No of customers 549,209 557,135
Customer growth, y-o-y (%) 82.4% 1.4%
Policies in force at year end 401125 400746
Policies in force at year end growth, y-o-y (%) -0.1%
Profitability, Efficiency & Asset Quality 9M 2014 9M 2015
Interest income/average gross loans 31.6% 29.2%
Non-payroll loans 22.7% 20.2%
Cost of average interest bearing liabilities 13.9% 13.5%
Net interest margin (%) 20.5% 17.7%
Net interest income/operating Income (%) 73.4% 76.9%
Net non-interest income/operating income (%) 26.6% 23.1%
Pre-provision margin (%) 54.2% 33.0%
Personnel expense/operating costs 37.7% 34.0%
Personel expense/revenue 19.3% 20.9%
Cost of risk (%) 9.9% 4.3%
Bad debts written-off/net loans and advances (%) 11.3% 4.9%
Cost-to-income ratio 51.2% 61.5%
Return on average equity (%) 23.8% 16.2%
Return on average tangible equity (%) 28.9% 27.7%
Return on average assets (%) 6.1% 3.3%
Total revenue/average assets (efficiency ratio) (%) 25.3% 19.3%
Operating costs/average assets (%) 13.0% 11.8%
29. Stable & Diversified Liability Base
29
Liabilities
Asset & Liability Mismatch Excluding
South Africa
Asset & Liability Mismatch, South Africa 50% of the SEK exposure hedged and
the company policy is to keep
For definitions please see page 36
31. Stable & Diversified Liability Base
31
Local Currency Funding By Country
Debt Maturity Profile
* Shareholder’s Loans make up 69% of Bayport Zambia’s funding
Swedish Bond Mid Yields To Maturity
Source: Bloomberg as of November 2015
100% 100%
49%
16% 17%
36%
23%
55%
36%
51%
84% 83%
64%
77%
45%
64%
0%
20%
40%
60%
80%
100%
South Africa Zambia* Botswana Mozambique Tanzania Uganda Ghana Colombia Mexico
% Of Local Currency Funding % Of Foreign Currency Funding
Change in the share of
local currency funding
YTD 2015
+65% -5%-14% +11%+2% -16% +9% -43%+0%
For definitions please see page 36
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32. Our Strategy: Core Payroll Deduction Markets
Our strategy is designed to leverage our strengths and take advantage of the opportunities we
believe we can avail ourselves of
As such, our strategy is based on the contextual facts and assumptions:
We have achieved a leading position as a non-bank payroll deduction based lender in our key markets, namely
Zambia, Ghana and Colombia
Additionally, we are a prominent non-bank payroll deduction based lender in Botswana, Uganda, Tanzania and
Mozambique
In all our core markets, we benefit from our ability to originate and deliver not only in large cities, but in remote
rural areas as well
There is material further growth potential for our core payroll deduction based lending business in many of our
key markets, namely in Zambia, Ghana, Colombia, Uganda, Tanzania, Mozambique, Colombia and Mexico*
As we grow our business, we expect the efficiency of our operations in these markets to improve further, as
manifested in the declining Cost/Income Ratio and, consequently, in the improving operating profitability
We have, therefore, devised a number of strategies to maximise the organic growth of our payroll
deduction based lending business in these core markets
We aim to improve the retention of our existing high-value clients and to extend the client lifetime value by
devising and implementing incentive-based retention programmes and proactive loan term extension and
refinancing programmes
We are investing in technology and people to be able to offer our clients differentiated pricing based on
behavioural data and other factors
We aim to preserve the existing and to develop new relationships with employers (including in the private
sector) in order to obtain new deduction codes, and believe that our unique local partnership model positions us
well to succeed
We are investing in marketing to enhance our brand recognition and awareness and reach out to new clients
within our core payroll target market
We will continue to expand our branch footprint and agent network and refine, where needed, our model of
agent engagement
We are investing in technology and people to further refine our credit underwriting and collection processes in
order to maintain the quality of our payroll loan book throughout the expected period of high organic growth
32
*(Where the addressable market (based on our current deduction codes) is estimated at ~1 mln individuals (compared with approximately 500,000 outstanding as of 30 September 2015))
1/3
For definitions please see page 36
33. Our Strategy: Scaling The Business Faster Through Expansion & Diversification
We have developed a strong track record of successfully entering new markets through either greenfield investment or
small-scale foothold acquisitions and rapidly integrating and scaling the business
Botswana: greenfield investment in 2010; Gross Loans 2010-2014 CAGR 64% & Revenue (Operating Income) 2010-2014 CAGR 64%1
Colombia: foothold acquisition in 2011; ; Gross Loans 2012-2014 CAGR 80% & Revenue (Operating Income) 2012-2014 CAGR 94% 1
Mozambique: greenfield investment in 2012; Gross Loans 2013-2014 CAGR 643% & Revenue (Operating Income) 2013-2014 CAGR
639% 1
Mexico: greenfield investment in December 2014; Gross Loans up 96% YTD; deduction codes addressing ~1 mln individuals
obtained
We continue to scan the market for suitable entry opportunities in Africa and Latin America and plan to achieve additional
growth in our core payroll deduction based lending business by entering new markets in a highly selective and disciplined
manner
We screen opportunities based on a rigorous set of criteria, including the affordability/size of investment, scale and scope
reachable in the medium term, and our ability to execute by leveraging our expertise in building and managing a mixed branch &
agent based distribution network and credit underwriting, with the investment and effort weighed carefully against the expected
market opportunity and socioeconomic and regulatory environment
We believe we will benefit from the further geographic expansion by enhancing the diversification of our revenue and /improving
the efficiency of our business
We believe that diversifying the range of financial solutions we offer to our clients builds shareholder value in several ways:
Extend the lifetime value of the average client by enhancing client loyalty for our core payroll deduction based lending business and
by achieving a higher product-to-client ratio
Increase the efficiency of our business model by migrating over time a material portion of the new and (in particular) repeat loan
disbursements
Create opportunities for disciplined off-payroll lending to our clients based on the transactional and behavioural data collected
Diversify our funding sources by attracting current account balances and term deposits
We have invested in technology and people and believe the pilot launch of MyMoney in Ghana has been a success
We intend to roll out by the transactional banking and/or deposit-taking pilot projects in Zambia (YE ‘15) and Mozambique
(2016)
33
Note:
(1) All CAGRs based on local currency figures
2/3
For definitions please see page 36
34. Our Strategy: South Africa & Insurance
In South Africa, we aim to preserve and improve the quality of our debit order loan book while maintaining cost
control discipline through the right-sizing of our business, in order to position the business to benefit from the
eventual cyclical improvement in the consumer credit conditions
We have enhanced the group-level oversight and made changes to the management of our South African business
We have tightened considerably our credit underwriting criteria and monitor them carefully to take further action if and
when warranted
We will seek to increase the share of client acquisition and disbursements via the outbound call centre and electronic
channels to optimise the cost of sales and delivery
We continue to invest in technology and people to further improve our collections processes
We monitor the regulatory environment and engage in pre-emptive and preventive redesign of our product bundles in
order to protect the net interest margin while remaining compliant at all times
We have built, since 2013, considerable expertise in insurance, by building through cross-sell a sizeable credit life
insurance business in South Africa and selected other markets
Our early experience in the distribution of other insurance products leads us to believe we can scale our
insurance business in certain core markets, including East Africa and Southern Africa
We believe that our continued focus on building the insurance business will result in the following benefits:
Further diversify our revenue streams
Leverage our branch and agent distribution network, including by reducing the sales agent churn through annuity-like commissions
Further enhance our reputation as a responsible lender as the insurance products we aim to sell reduce the need to “borrow for wrong
reasons” (i.e. in response to risk events that could/should be covered by insurance rather than by emergency borrowing)
34
Note:
(1) Currently licensed for deposit-taking in Ghana, Zambia and Mozambique
3/3
For definitions please see page 36
35. Translating Our Strategy Into Measurable Management Targets
35
1An active user has signed up for an account and deposited funds into their account
Note: indicative management targets are for illustrative purposes only and do not represent forecast or guidance endorsed by the company
For definitions please see page 36
Strategic Objective Measure YE 2014 9M 2015 Indicative Management Target
Maximise organic growth of the
payroll deduction based lending
business in core markets
Gross payroll loan book US$ 514 million US$ 484 million YE 2018: ~US$ 1,143 million
Net payroll loan book US$ 492 million US$ 460 million YE 2018: ~US$ 1,072 million
Effective yield 27.3% 23.1% 2018: 31.8%
Additional growth by entering new
payroll deduction markets
# core markets 8 9 9-10
Diversify the range of financial
solutions offered
# of active1
users 557 4,766 YE 2018: ~285,000
(MyMoney)
Client account balances &
deposits
Negligible US$ 297,005 YE 2018: ~US$52 million
Off-payroll gross loan book Negligible US$ 105,285 YE 2018: ~US$44 million
South Africa
Gross loans US$ 466 million US$ 383 million YE 2018: ~US$397 million
Net loans US$ 313 million US$ 250 million YE 2018: ~US$225 million
ROAA 1.10% 1.30% YE 2018: ~6%
Insurance
Annual Gross Written Premium US$ 49 million US$ 25.2 million 2018: ~US$ 61 million
Combined Ratio 35.4% 34.2% 2018: 35% - 39%
Operational Objectives Net Interest Margin 26.7% 17.7% 2018: 27%
Cost/Income Ratio 54.5% 61.5% 2018: 39%
Cost of Risk 13.4% 4.3% 2018: 4%
Performance Objectives RoAE 23.9% 16.2% 2018: ~39%
RoAA 5.7% 3.3% 2018: ~9.5%
36. Definitions
36
Return On Average Total Assets (ROAA) equals Net Income of the period divided by average Total Assets for the same period;
Return On Average Equity (ROAE) equals Net Income of the period divided by average Shareholders’ Equity for the same period;
Cost of Funds equals Interest Expense for the period divided by average Interest-bearing Liabilities for the period;
Net Interest Margin equals Net Interest Income for the period divided by average Gross Loans for the period;
Net Income Margin equals Net Income divided by Total Operating Income;
Interest Coverage is calculated as Profit Before Taxation divided by Interest Expense;
Cost of Risk equals Impairment Expense for the period divided by average Gross Loans for the period;
Gross loan book includes loan principal, accrued interest and written-down loans that are accounted for at the balance sheet at a discounted value;
Gross Loan Yield equals interest income for the period divided by average Gross Loans for the period;
Effective loan yield equals net interest income plus non-interest income for the period divided by average gross loans for the period;
Total operating income includes Net Interest Income plus Non-interest Income;
Net operating income means net interest income plus non-interest income less impairment for loan losses;
Pre-provision Margin equals Profit Before Taxation for the period plus Impairment of Loans and Advances for the period divided by Interest Income for the period;
Operating Leverage equals y-o-y percentage change in Total Operating Income less y-o-y percentage change in Total Recurring Operating Costs;
Cost/Income ratio equals Total Recurring Operating Costs plus Discretionary Bonus Pool of the period divided by Total Operating Income;
Loan Loss Reserve includes Loan Loss Reserve principal and any accrued and recognized interest;
Balance in arrears includes loan principal plus any accrued interest & fees;
Value in arrears includes loan principal only and is an approximate value based on a one month first cycle collection delay;
For all vintages denominator value is equal to original principal debt (“OPD”) and numerator value is equal to loan principal plus recognised but not received interest & fees;
NPLs means those loans that are either Non Performing as per the or are classified as Doubtful or Bad (where separation from payroll has occurred);
Doubtful mean loans where future recovery is unlikely;
Bad mean loans that are considered irrecoverable and automatically carry a 100% provision;
Recency classification: last payment exceeds three months ago;
Provision Coverage Ratio equals Provision held divided by Gross Loan Book;
NPL Ratio equals Non-Performing Loans for the period divided by Gross Loan Balance;
NPL Coverage Ratio equals provision held divided by Non-Performing Loans;
Collection Rates equals Actual Collections for the period divided by the amount that was Due to be Collected for the period;
DPD means days past due;
Tier I Capital ratio calculated in accordance with Basel III Capital Accord Standards. The Tier I capital adequacy ratio equals the Tier I capital divided by the risk weighted assets;
Total capital adequacy ratio calculated in accordance with Basel III Capital Accord Standards. The total capital adequacy ratio equals total capital (Tier I +Tier II - deductions) divided by the risk
weighted assets.
37. Disclaimer
37
IMPORTANT INFORMATION
This presentation (the “Presentation”) has been prepared by Bayport Management Ltd (the “Company”). This Presentation has been prepared and issued by and is the sole
responsibility of the Company and is being furnished to each recipient solely for its own information and in connection with the preliminary discussions in relation to the
Company. No copy of the Presentation will be left behind after the meeting. For the purposes of this notice, “Presentation” means this document, its contents or any part
of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed during the Presentation meeting. By attending any
meeting where this presentation is made public, or by reading this document, you agree to be bound by the following terms and conditions.
THIS PRESENTATION DOES NOT, AND IS NOT INTENDED TO, CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL, ISSUE, PURCHASE OR SUBSCRIBE FOR (OR
ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR) ANY SECURITIES OF THE COMPANY (“SECURITIES”) IN ANY JURISDICTION.
This presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for Securities in the United States of America. The Securities
discussed in this presentation have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or qualified for
sale under the law of any state or other jurisdiction of the United States of America and may not be offered or sold in the United States of America except pursuant to an
exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Company is not and does not intend to become an “investment
company” within the meaning of the U.S. Investment Company Act of 1940, as amended (the “U.S. Investment Company Act”), nor is it engaged or propose to engage in
the business of investing, reinvesting, owning, holding or trading in securities. Accordingly, the Company is not and will not be registered under the U.S. Investment
Company Act and investors will not be entitled to benefits or that Act. Neither the United States Securities and Exchange Commission nor any securities regulatory body of
any state or other jurisdiction of the United States of America, nor any other country or political subdivision thereof, has approved or disapproved of this presentation or
any Securities discussed herein or passed on the accuracy or adequacy of the contents of this presentation. Any representation to the contrary is a criminal offense in the
United States of America.
The Presentation has been prepared on the basis of information held by the Company and also from publicly available information. This information, which does not
purport to be comprehensive, has not been independently verified by or on behalf of the Company . The Presentation does not constitute an audit or due diligence review
and should not be construed as such. Except where otherwise indicated in the Presentation, the information provided therein is based on matters as they exist at the date
of preparation of the Presentation and not as of any future date and will be subject to updating, revision, verification and amendment without notice and such information
may change materially. Nothing contained in this Presentation is or should be relied upon as a promise or representation as to the future. This document has not been
approved by any regulatory or supervisory authority. No representation or warranty, express or implied, is given by or on behalf of the Company or any of the Company’s
directors, officers or employees or any other person as to the fairness, currency, accuracy or completeness of the information or opinions contained in this document and
no liability is accepted whatsoever for any loss howsoever arising from any use of this presentation or its contents.
The presentation includes certain forward-looking statements which are based on the Company’s belief or current expectations, intentions and projections with respect to
its future performance, anticipated events or trends and other matters. These forward-looking statements can be identified by the use of forward-looking terminology,
including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”, “may”, “will” or “should” or, in each case, their negative or other variations or
comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not
limited to, statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, results of operations, financial condition,
liquidity, prospects, growth and strategies. Although the Company believes the statements are based on reasonable assumptions, such statements may or may not be
correct and should not be construed in any way as a guarantee of future performance. Factors that could cause actual results to differ materially from those expressed or
implied by such forward-looking statements include risks specific to the industry, unanticipated economic and market conditions as well as other relevant developments
and risks described in the Company’s periodic, current and other reports. No information included in this presentation is intended to be a profit forecast or a financial
projection or prediction. No representations or warranties, express or implied, are given as to the achievement or reasonableness of, and no reliance should be placed on,
statements pertaining to financial performance, including (but not limited to) any estimates, forecasts or targets contained herein. The achievability of the Company’s
proposed strategy set out in this presentation cannot be guaranteed. Except as may be required by applicable law or regulation, the Company assumes no obligation to
publicly release the result of any update or revisions to these forward-looking statements to reflect new information, future events or circumstances after the date hereof,
or otherwise. These statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties.
