Fixura Annual Report 2014 More info about the company: https://www.fixura.fi/fi-fi/home/

1. PEER-TO-PEER LENDING
2014
ANNUALREPORT

2. ANNUAL REPORT
2014
FIXURA IS Finland’s first and largest peer-
to-peer lending company. The company started
operations in 2010 and has since then been a
pioneer of the sharing economy.
Who we are
Credits
between
people
ALLOWING PEOPLE TO CONNECT
AND TRANSACT

3. FIXURA FACILITATES loans between people
by offering a secure platform where borrowers
and investors can meet. Both customer groups
set their own terms, and loans are made in real
time, matching demand and supply.
FIXURA WANTS to replace traditional
financing activity with the flexible and efficient
peer-to-peer loan. When everything inessential
is stripped out and operations are fully
digitalised, the fees to customers remain low.
What we do Why we do it
2014

4. ONE OF FINLAND’S
MOST PROMISING
YOUNG COMPANIES
It feels really good to know that
there are others who believe in us
and our potential.
04

5. Mirja Palola
CEO
M
y first year as Fixura’s CEO could well be described as a real year
of investment. We have done a lot of work for our future growth
and internationalisation, we have continued development of our IT
platform and we have also tightened the lending criteria in order to
improve the quality of our borrowers.
All these measures have consumed both time and money and have imposed
a burden on staff as well as on turnover and profit. Even so, the investments
have been essential – they have helped put our affairs in order and prepare for
future growth.
The overriding feeling after this work-filled year remains one of enthusiasm. It
is hugely rewarding to be involved in a new sector which is still so young that
only the sky is the limit. We must be willing and able to try everything; there are
no ready-made operating models.
One of the working year’s finest moments was in December, when we were
informed that we had been approved for the Tekes project aimed at Finland’s
most promising startups. It feels really good to know that there are others who
believe in us and our potential.
05
2014

6. P
eer-to-peer lending means in practice that people
lend money to each other via an intermediary
company. Few official statistics exist on the size
of the sector, but informed estimates indicate that
the sector is doubling annually. In Europe, the alternative
finance market grew by 144% in 2014, according to a report
from the University of Cambridge. The largest operator in
the world is currently considered to be the Chinese company
CreditEase.
One of the most significant events in the sector in 2014
was the successful listing of the US company Lending
Club on the NASDAQ stock exchange. Lending Club is the
largest peer-to-peer lending company in the West. The IPO
shows that peer-to-peer lending is becoming increasingly
THE PEER-TO-PEER
LENDING SECTOR
IS DEVELOPING
AND GROWING FAST
PEER-TO-PEER LENDING IS ONLY
A 10-YEAR-OLD PHENOMENON,
WHICH IS STILL DEVELOPING
RAPIDLY. THE SECTOR IS PART
OF THE WORLDWIDE SHARING
ECONOMY TREND.
06

7. 2014
07
established and that the sector in general is being taken
more seriously.
Another significant trend in 2014 was the cooperation
between banks and various peer-to-peer lending
companies. Through this collaboration, customers
can benefit from the strengths of both parties – the
opportunities offered by banks to access low-cost capital,
and the efficient systems provided by peer-to-peer lending
companies. This cooperation is also an indication that peer-
to-peer lending companies and banks are not necessarily
competitors in all circumstances.
The peer-to-peer lending sector is also growing in Finland
and in 2014 we saw the arrival of some new competitors.
There are also peer-to-peer companies who exploit
regulatory shortcomings and endanger the reputation of
the entire industry. That’s why Fixura has for a long time
lobbed on behalf of light regulation, which would clarify the
rules.
As Finland’s first peer-to-peer lending company, Fixura
has consistently worked to increase awareness of the
sector, and this effort is beginning to bear fruit. The general
awareness of peer-to-peer lending is clearly growing in
Finland, as the sector in 2014 increasingly began to interest
customers as well as the authorities and the media.
One of the most significant events in
the sector in 2014 was the successful
listing of the US company Lending
Club on the NASDAQ stock exchange.

8. RESHAPING
THE FINANCIAL
SECTOR
We are part of this megatrend,
which is shaking up traditional
financial institutions.
08

9. T
he financial sector is undergoing a period of great transition – in recent
years we have seen the arrival of a number of new players as well
as completely new products and services. Fixura and peer-to-peer
lending in general are part of this megatrend, which is shaking up
traditional financial institutions.
Underlying everything, of course, is digitalisation, which facilitates completely
new earnings models for companies and better terms for customers. Another
factor strengthening this trend is the historically low level of interest rates.
This situation benefits new services like Fixura’s that can provide a better yield.
The peer-to-peer lending sector is growing quickly, and I assume that the
sector will become more complex in the future. It is already evident that some
peer-to-peer lending companies are specialising in certain types of loans –
crowdfunding and loans to businesses are examples of this phenomenon. At
Fixura too, we are continuously developing our product offering and operations.
This is good news for our customers – they can count on completely new
products and more convenient and efficient services in the future. Fixura is on
a journey that has just begun. Where this journey will lead is not yet known, but
it is certainly very interesting to be along for the ride.
2014
09
Kaj Rönnlund
Chairman of the Board

10. JANUARY: New CEO
Mirja Palola starts as
Fixura’s CEO. One of her
most important tasks
is to build a management team for
the young company.
MAY: First Tekes
project
Fixura’s first Tekes
(Finnish Funding Agency
for Innovation) project is approved.
The project is aimed at preparing
for internationalisation and it will
be completed by the end of the year.
JUNE: Office in
Helsinki
Fixura expands its
activities outside Vaasa
by opening an office in Helsinki.
Six new representatives begin to
market Fixura to investors in the
Helsinki Metropolitan Area.
What we did in 2014
10
AUGUST: Management
team reorganised
Fixura’s management
team is reorganised and
supplemented; CCO Heikki Koivu
and CFO Niclas Snellman start as
new members. Later in the autumn,
Hendrick Henningson, Director of
Sales joins the team. The new people
bring new expertise from larger and
international companies to Fixura.
SEPTEMBER: Scoring
improves
The scoring process, which
filters borrowers, is given
052014
012014
062014
082014
092014
THE YEAR WAS A REAL
YEAR OF INVESTMENT
FOR FUTURE GROWTH.

11. 11
2014
a fundamental overhaul. The goal
is to improve the quality of borrow-
ers, which in practice means tighter
filtering. The change impacts
turnover negatively in the short
term, but in the longer term it will
improve investors’ yields.
OCTOBER: Founders
join Board of
Directors
Fixura’s co-founders
Jeanette Samuelsson and Simon
Sandvik leave operational duties,
but continue on the Board of
Directors.
NOVEMBER: Financing
round and conference
In order to fund growth,
Fixura arranges a
financing round which produces EUR
700,000 through a convertible bond.
Most of the sum is gathered from
Fixura’s investment customers, which
is a demonstration of their trust in
the company.
In November, Fixura also participates
in the Lendit Conference in London,
which is Europe’s biggest peer-to-
peer lending event.
DECEMBER: Second
Tekes project
Fixura is one of the
few applicants to be
accepted for Tekes’ Young Innovative
Companies project, which is aimed
at Finland’s most promising startups
and which supports growth
and internationalisation.
102014
112014
122014
The new management
team brings new
expertise from larger
companies to Fixura.

12. 12
LEADING
THE WAY
In 2014 Fixura made many investments
in preparation for future growth. This
is the main reason why the result was
weaker than in the previous year. But we expect
the investments to start bearing fruit in 2015
and 2016.” Niclas Snellman, CFO
MEMBERS OF FIXURA’S
MANAGEMENT TEAM HAD
A BUSY YEAR IN 2014.

13. 2014
13
Work on Fixura’s new IT platform
continued intensively during the whole of
2014. The amount of work has been great
and delays could not be avoided, but in spring 2015
the platform finally entered the testing phase. The
new platform will facilitate more efficient money
transfers.” Christian Långfors, CTO
As a new financial phenomenon, peer-to-
peer lending interests the media, and during
the year we gave a number of interviews.
We also invested heavily in marketing and creating
awareness by participating in several trade fairs.
In addition, we bought advertising space in various
media, both on- and off-line.” Heikki Koivu, CCO

14. The average annual rate of return since Fixura started operating is 10.5%.
This figure includes paid subscription and transaction fees.
Statistics 2014
10.5%
PAYMENTS TO INVESTORS
14
Jan
Feb
M
ar
Apr
M
ay
Jun
Jul
Aug
Sep
Oct
N
ov
Dec
800,000 €
700,000 €
600,000 €
500,000 €
400,000 €
300,000 €
200,000 €
100,000 €
TOTAL PAYMENTS INTEREST INCOME

15. At the end of 2014, Fixura had over 44,000 registered users.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
33,554 34,475 35,268 36,101 37,070 38,166 39,141 40,051 40,859 42,098 43,105 44,135
TOTAL AMOUNT OF REGISTERED USERS (BORROWERS AND INVESTORS)
TOTAL AMOUNT OF ACCEPTED LOANS
(1,000 €)
NUMBER OF LOANS MEDIATED IN 2014
(CUMULATIVE)
35,457
34,529
33,719
32,541
31,416
30,492
29,412
28,044
26,367
25,109
24,127
23,203
3,061
2,872
2,714
2,445
2,179
1,964
1,725
1,429
1,038
748
531
314
Jan
Jan
Feb
Feb
M
ar
M
ar
Apr
Apr
M
ay
M
ay
Jun
Jun
Jul
Jul
Aug
Aug
Sep
Sep
Oct
Oct
N
ov
N
ov
Dec
Dec
15
2014
20% of Fixura’s loan customers seek at least one
additional loan. This shows that they have been
satisfied with the service they receive.

16. 16
FINANCIALS

17. 17
2014 2013
REVENUE 2,275,023 2,205,679
OTHER OPERATING INCOME 72,255 1,955
MATERIALS AND SERVICES
PURCHASED SERVICES –460,154 –414,866
TOTAL MATERIALS AND SERVICES –460,154 –414,866
PERSONNEL COSTS
SALARIES AND FEES –531,755 –323,196
INDIRECT LABOUR COSTS
PENSION EXPENSES –84,857 –52,890
OTHER INDIRECT LABOUR COSTS –15,782 –9,135
TOTAL INDIRECT LABOUR COSTS –100,639 –62,025
TOTAL PERSONNEL COSTS –632,394 –385,221
DEPRECIATIONS AND WRITE–DOWNS
DEPRECIATIONS ACCORDING TO PLAN –47,691 –179,088
TOTAL DEPRECIATIONS AND WRITE–DOWNS –47,691 –179,088
OTHER OPERATING COSTS
SALES EXPENSES 0 0
TOTAL OTHER OPERATING COSTS –1,468,123 –1,050,769
OPERATING PROFIT –261,084 177,690
FINANCIAL INCOME AND EXPENSES
INTEREST AND OTHER FINANCIAL INCOME 4,765 4,115
INTEREST AND OTHER FINANCIAL EXPENSES –68,458 –467
TOTAL FINANCIAL INCOME AND EXPENSES –63,693 3,648
PROFIT BEFORE EXTRAORDINARY ITEMS –324,777 181,338
PROFIT BEFORE APPROPRIATIONS AND TAXES –324,777 181,338
INCOME TAX 392 –46,395
PROFIT FOR THE FINANCIAL YEAR –324,385 134,943
Income Statement 01.01.2014–31.12.2014
2014

18. 18
2014 2013
ASSETS
NON–CURRENT ASSETS
TANGIBLE ASSETS
MACHINERY AND INVENTORIES 10,684 7,711
OTHER TANGIBLE ASSETS 132,388 176,518
ADVANCES PAID AND CONSTRUCTION IN PROGRESS 487,127 204,497
TOTAL TANGIBLE ASSETS 630,199 388,726
TOTAL NON–CURRENT ASSETS 635,834 388,726
INVESTMENTS
HOLDINGS IN GROUP COMPANIES 5,635 0
TOTAL INVESTMENTS 5,635
CURRENT ASSETS
SHORT–TERM RECEIVABLES
RECEIVABLES FROM GROUP COMPANIES 233 0
OTHER RECEIVABLES 71,080 4,831
ACCRUED INCOME 1,694,105 1,280,482
TOTAL SHORT–TERM RECEIVABLES 1,765,418 1,285,313
CASH AND BANK 359,481 389,518
CLIENT FUNDS ACCOUNTS 0 0
TOTAL CURRENT ASSETS 2,124,900 1,674,831
TOTAL ASSETS 2,760,734 2,063,557
Balance Sheet 31.12.2014

19. 19
2014
2014 2013
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
SHARE CAPITAL 2,500 2,500
OTHER FUNDS
FUNDS FOR FREE PAID–IN CAPITAL 1,138,483 1,138,483
TOTAL OTHER FUNDS 1,138,483 1,138,483
RETAINED EARNINGS FROM PREVIOUS PERIODS
PROFIT AND LOSS FOR THE PERIOD 135,170 227
TOTAL RETAINED EARNINGS FROM PREVIOUS PERIODS 135,170 227
PROFIT FOR THE PERIOD –324,385 134,943
TOTAL SHAREHOLDERS' EQUITY 951,768 1,276,153
LIABILITIES
LONG–TERM LIABILITIES
CONVERTIBLE PROMISSORY NOTES PAYABLE 1,205,000 500,000
LOANS FROM FINANCIAL INSTITUTIONS 0 4,473
TOTAL LONG–TERM LIABILITIES 1,205,000 504,473
SHORT–TERM LIABILITIES
LOANS FROM FINANCIAL INSTITUTIONS 289,536 5,880
ACCOUNTS PAYABLE 138,951 123,143
OTHER PAYABLES 26,898 10,387
ACCRUED INCOME 148,581 143,521
TOTAL SHORT–TERM LIABILITIES 603,966 282,931
CLIENT FUNDS ACCOUNTS 0 0
TOTAL LIABILITIES 1,808,966 787,404
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 2,760,734 2,063,557

20. Fixura Ab Oy
Kauppapuistikko 15 Mikonkatu 6 C
65100 Vaasa 00100 Helsinki
www.fixura.fi
Concept:MantraCommunications Design:StudioPAP Print:Fram2015