Company Presentation

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Qredits

Non-profit organisation founded in 2009.

Statutory goal: provide financing and coaching for starting / existing small business

entrepreneurs that have a viable business plan yet are unable to obtain financing through regular channels.

Operational goal: professional organisation with traditional lending facility in combination

with sophisticated IT support sustainable organisation funded by

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Organisation

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Organisation as of October 1, 2013

46 employees assigned to:Credit facility & Support staff (25)Coaching department (5)Regional Loan officers (16)

Qredits was awarded the Microfinance Good Practices Europe Award 2010

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Qredits-coach

Volunteer organisationwith 500 coaches

Online tools for entrepreneurs Entrepreneurial competency test Business Plan template (150 downloads a day) e-learning modules (average of 30 sold per week)

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e-learning How to write a business plan

e-learning How to write a sales plan

e-learning Credit management

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€ 79,95 € 49,95

Distributed to 20 vocational and bachelor-level schools.

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Qredits-coach set-up

Qredits works with over 500 volunteer business coaches:

Experienced entrepreneurs / Young professionals

Company pool: 190 business coaches from 10 affiliated business partners

Business Development Services Coaching programs with / without microcredit loan (€200)

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Credit facilities characteristics

Microcredit loans

Onsite screening at entrepreneur’s home or place of business Personally tailored service Short processing times Monthly automatic withdrawal of interest and principal payments Flexibility in loan pay-off Coaching available

SME loans (available Nov 1, 2013)

Businessloans € 50,000 - € 150,000 Interest rates: 8.75% - 10.75% Average loan term: TBD

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Businessloans up to € 50,000 Interest rates: 9.75% - 10.75% Average loan term: 4.5 years

Procedure Loan Assessment

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Web-based loan application in Micronet 5 step process ‘4-eyes principle’

100%

22%

30%

69%

Application

Intake

Screening

Credit offer

Assessment

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Total Number Percentage

New applications 25.873  

Not considered (rejected at intake level) 7.541 29%

Processed 18.332 71%

Pending 659  

Approved 4.316 24%

Rejected 13.357 76%Average (approved) loan amount €16.148  

Portfolio Number AmountPending loan offers 64 € 1.002.175 Loans issued 3.985 € 68.773.178 Total loans approved 4.049 € 69.775.353

Outstanding Number AmountTotal loans issued 3.985 € 68.773.178 - Repayment active loans   € 21.629.499 - Passed to bailiff 0 € - - In default 119 € 2.036.605 - Fully Repaid loans 456 € 2.799.116 Active loans 3.410 € 42.307.959

Loan portfolioJan 2009 – Sept 2013

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Clients by sector

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Client characteristics

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Bachelor level

Bachelor level

Masters level

4 indicators 21 sub-indicators Annual questionnaire

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Social Economic

Performance Indicator

Income

•Increase in income•Decrease of poverty level of customers•Increase in economic independence of customers

Socio-economic Results

•Job creation•Increase in number of SMEs

Scope

•The number of people Qredits is reaching•Servicing target groups

Social Yield

•Increase social network•Decrease exclusion in job market•Educational enrichment

Microfinancing EffectsSocial Economic Performance

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Microfinancing EffectsIncome

Income from paid employment

No income

Social benefits income

Other income

Income from own enterprise

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On average customers with personnel employ between 2 – 2.5 FTE.

15% - 20% of our customers work with volunteers.

5% - 10% of our customers employ previous welfare recipients or people with minor disabilities.

Microfinancing EffectsNumber of employees

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Microfinancing Effectssurvival rate

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Amounts in € Actual Actual Actual ForecastINCOME 2010 2011 2012 2015

Interest revenues 1.268.665€ 2.079.635€ 3.242.597€ 8.025.000€ Closing costs 203.305€ 416.868€ 484.142€ 1.030.000€ Other 417.108€ 226.644€ 49.450€ 80.000€ TOTAL INCOME 1.889.078€ 2.723.147€ 3.776.189€ 9.135.000€

COST OF FUNDING 24.795€ 167.258€ 304.220 720.000€

EXPENSESPersonell 1.555.359€ 1.832.290€ 1.929.655€ 3.210.000€ Operational costs 701.233€ 843.799€ 898.251€ 1.440.000€ TOTAL EXPENSES 2.256.592€ 2.676.089€ 2.827.906€ 4.650.000€

392.309-€ 120.200-€ 644.063€ 3.765.000€

Provision/Defaults 331.144€ 636.372€ 691.531€ 2.615.000€

723.453-€ 756.572-€ 47.468-€ 1.150.000€

Financials – Loan Division

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Financial Indicators

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  2010 2011 2012Quality credit portfolio      Percentage of loans issued > 45 days in arrears 5.3% 6.1% 6.8% Percentage of loans booked as default 2.5% 2.6% 2.7%        Efficiency and productivity      Operational cost ratio 27.5% 20.8% 20.0% Average cost per loan issued € 4,690 € 3,312 € 3,435Average loan amount €16,998 €15,951 €17,277       Portfolio yield 9.0% 10.3% 11.7%

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Increase volumes Target group reached Number of loans provided

Provisions Risk Policy Provision calculation (payment delays, other risk factors) Guarantee-instruments (EIF / national government)

Cost of Funding Senior debt & equity capital Fluctuating rates (Euribor) / Fixed rates / Interest SWAP

Key Success FactorsLoan Division

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Amounts in € Actual ForecastINCOME 2012 2015

Subsidy 1.263.340€ -€ Coaching 41.351€ 265.000€ Tools 12.159€ 240.000€ TOTAL INCOME 1.316.850€ 505.000€

EXPENSESPersonell 357.541€ 240.000€ Operational cost 706.362€ 235.000€ Development new products 248.799€ -€ TOTAL EXPENSES 1.312.702€ 475.000€

RESULT 4.148€ 30.000€

Financials – Coaching Division

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Key Success FactorsCoaching

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Development & distribution online tools Distribution via internet & schools Cross-sell existing customers

Volunteer coaching Develop different coaching programs Large coachpool Quality criteria (intervision / e-learning coaching)

Distribution tools and coaching programs via commercial banks and business partners

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For more information visit

www.qredits.com

Oct 15, 2013