PRIVATE AND CONFIDENTIAL

Creditstar Group

Company Presentation

Founded in 2006, Creditstar is

celebrating 10 years in business.

While great care has been given to the contents of this document, no guarantee, warranty or representation, express or implied, is

given to their accuracy or completeness, up-to-datedness, fairness. Many of the statements in this document about future events

are management opinions which may not materialise as envisaged in the management opinion. The information in this document

is subject to change without notice. The delivery of this document shall not, under any circumstances, create an implication that

the information contained herein is correct at any time after the date hereof or that there has been no change in the affairs of

Creditstar Group AS (the Company) since the date hereof.

Nothing in this document shall be treated as a representation or warranty as to the profitability of the investments into the

Company. Nothing contained herein is, or may be relied upon as, a promise, representation or guarantee as to the future

performance or policies of the Company or as to any other circumstances that may or may not occur in the future. Nothing in this

document constitutes an offer or invitation by or on behalf of the Company to invest into the Company or in its loans.

By receiving this document, you accept and acknowledge that no special relationship of trust or duty whatsoever exists that would

require updating the information herein and confirm that you are not relying upon any such special relationship of trust or duty

(including but not limited to under Article 1048 of the Estonian Law of Obligations Act, in Estonian: Võlaõigusseadus).

Neither this document nor any information contained herein shall not be treated as legal, financial or tax advice of any kind.

Nothing in this document shall be construed as the giving of investment advice by the Company or any other person. You should

take independent advice from qualified professional advisors before making investment decision(s).

The information set forth in this document is confidential and may include trade secrets. This information is intended only for

Company’s creditors, potential creditors, shareholders, management, advisors, auditors, lawyers and current investors.

Forwarding this presentation to third parties (including media, press) can only be done with Company’s approval and is otherwise

prohibited. Especially, you should not make it available to any person prohibited by law, including but not limited to United States

of America resident

Disclaimer

3

Executive summary

Creditstar Group („Creditstar“, „the Company“), established in 2006, is a provider consumer

financial services in Europe

Creditstar has gained trust of almost 350,000 registered users in 8 countries across Europe,

including Estonia, Finland, Sweden, Lithuania, Poland, UK, Czech Republic and Spain

The Company is run by an entrepreneurial team of 80 people from 14 nationalities of different age

and background

With total assets of approximately 48 M EUR and net profit exceeding 1.6 M EUR Creditstar had

another record year in 2016

In August 2016 Creditstar started operating on Mintos Marketplace. Since then about 6000

investments per week have been done in Creditstar loans issued in Poland and Spain.

4

Creditstar - an international fintech company

Creditstar operates in 8 countries

Trusted by many customersOverview

Creditstar, a successful provider of consumer financial services, was

established in 2006 in Tallinn, Estonia. Today it has ca. 40% market share1

in presence in 7 other markets in Europe

Company’s revenue and customer growth has been fuelled by entering new

geographical markets, expanding customer base and product development

The Company offers unsecured online and mobile consumer loans in the

amount of EUR 50 to 3,000 for a period of 5 days to 36 months

Lending activity is supported by an industry-leading infrastructure that

meets strict regulations and provides exceptional user experience.

Creditstar Group acts according to Responsible Lending policy and

thoroughly checks the background of all loan applicants.

349,000 272,000

registered users active customers2

1: Management estimate which based on portfolio sizes of its competitors

2: A customer who has taken at least one loan and/or has logged in the website at least once during last 12 months

Key financials (Fiscal year 2016)

€10,570(thousand)

Interest income

€1,640(thousand)

Net profit

11%

Net margin

€47,588(thousand)

Total assets

Active markets

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Our MissionWe want our service to make people's everyday lives a little easier. Our clients can rely

on us, when they need a simple and transparent short term financial assistance.

Our VisionWe aim to deliver a simpler approach to personal financial services. We manage our

client relationships with a positive tone, by being friendly and respectful. And we want to

be a service provider who our clients trust, but moreover who they actually like.

Responsible PracticesAt Creditstar, we are committed to responsible lending. It means that we are selective in

giving out approvals to loan applications. We also urge our potential and existing clients

to consider all the flip sides of the coin before taking on a new financial commitment. Our

service is something that needs to be communicated with great integrity and we do our

best to meet the expectations of all parties involved.

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Creditstar Group: an international fintech company

Excellence in operations

International and accomplished team

Scalable and timely processes

International reach

Innovative products

State-of-the-art in-house technology

Compliance with legislation

Big data and advanced analytics

Creditstar has efficient and controlled processes around all aspects of

customer life cycle - portfolio allocation, marketing, customer due

diligence, credit scoring, underwriting, customer support, cross-

selling/retention and debt collection.

Creditstar is led by an international team of experienced professionals.

The team has diverse backgrounds and skill sets with focus on IT and

banking. With native employees for each of its markets Creditstar ensures

efficient communication with local counterparties and better understanding

of cultural differences and customs of the markets.

Company’s international expansion focuses on growth, the process of

expansion is standardised which ensures cost efficient and fast execution.

Similar process is also implemented in product development and the way

how the products are brought to market.

The Company operates in 8 countries and is currently evaluating several

other countries which the Company might enter in the foreseeable future.

Creditstar has introduced to the market convenient, flexible and

transparent financial products that meet clients' expectations and needs.

The Company provides flexible microloans, instalment loans and credit

lines. Products in development include loans via VISA credit cards.

The technology developed by Creditstar can shape new trends in lending

behaviour. The online lending platform is user friendly and provides

excellent user experience from all devices at the same time

accommodating comprehensive and efficient back-office functionality.

Creditstar meets licensing requirements in all its geographic markets.

Creditstar’s IT platform ensures that the whole Creditstar Group can

quickly adapt to changes in regulations.

Creditstar has data driven culture and operations - advanced statistical

and machine learning models are used to make lending decisions, detect

fraud and expand the customer base. The Company also uses real-time

credit scoring and underwriting analytics. Marketing optimization and

customer segmentation analytics is also data driven.

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In June 2016, the Czech subsidiary of Creditstar Group announced

the launch of www.creditstar.cz and started operations in Czech

Republic.

The subsidiary already has over 4,700 registered users.

Czech Republic

Spain

Latest milestones and developments

Compliance New markets

Creditstar Estonia and Ziip received authorisation from the

Estonian Financial Supervision Authority (FSA) in March 2016.

Successful fundraising

Creditstar completed two new unsecured bond issues in Q2 2016.

Issue 1: A three year bond issue in the amount of EUR 6 millionand maturity of March 2019.

Issue 2: A six month bond issue in the amount of EUR 3 millionand maturity of December 2016.

Creditstar UK received full authorisation from the Financial Conduct

Authority (FCA) in the UK in March 2016. Before receiving full

authorisation, Creditstar UK was operating with an interim

permission issued by the FCA.

Estonian Financial Supervision Authority

Financial Conduct Authority in the UK

In May 2016, the Spanish subsidiary of Creditstar Group

announced the launch of www.creditstar.es and started operations

in Spain.

The subsidiary already has over 22,500 registered users.

Acquisition of Reisiraha OÜ

In April 2016, Creditstar acquired 100% of the share capital in

Reisiraha, a small consumer credit provider offering holiday

financing in Estonia. The acquisition will enable Creditstar to

accelerate Group’s marketing efforts into travel and vacation

financing.

The portfolio of Reisiraha accounts for less than 1% of the

Creditstar Group’s loan portfolio.

Creditstar Group was selected as a National Champion

representing Estonia in the 2016/17 European Business Awards.

International recognition to Creditstar

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Key strategic initiatives

Mission Objective

Creditstar is continuously evolving and its activities are based on

the vision to be the most reliable and innovative provider of

financial services. Creditstar’s mission is to help people when they

need simple and transparent financial solutions.

The aim of the Company is to offer clients a high level of customer

service and provide financial products that correspond to its

customers needs whenever they are in need of short term

financing.

Strategic goal

Company’s strategic goal is to build a strong international brand by

adapting and scaling its successful marketing, technological and

debt managing techniques of Estonian market in international

markets.

KEY INITIATIVES

Continue international expansion

Introduce new products and services

Introduce new complementary services to existing customers

(e.g. credit cards) and expand loan product range

Attract financing.

Attract long-term financing from institutional investors

Finland

45,000Sweden

13,000

Estonia

120,000

Lithuania

35,000

Poland

66,000

Czech Republic

4,700

United Kingdom

44,000

Country

Registered users as of

Dec’16

Customer base

Spain

23,000

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▪ Cost-efficient business model

▪ Driving force in innovations in the consumer credit market

▪ Strong financial performance throughout its 10 year history

Strengths and opportunities

Strong partner network

Partnership with established companies that help to facilitate the

communication with customers and marketing.

Focus on market niches

Distinguished operational performance

Transparent operations

10

Excellent marketing and product development

▪ Deep knowledge of designing user experience in online and

mobile applications

▪ Proven experience in software engineering

▪ Ownership of an extensive database with customer data and

ability to draw business insights from it

▪ Creditstar’s credit scoring model is superior to majority of

commercial banks. Creditstar uses much more data points in

their qualitative scoring technologies and big data analysis.

▪ Quarterly reporting to different stakeholders

▪ Conservative provision policy

▪ Regulated and licensed by relevant supervising authorities in all

markets where Creditstar operates

▪ Consumer credit segment is overlooked by large retail banks.

Creditstar’s specialization allows running the business with

very low overhead expenses.

▪ Creditstar is able to quickly react to regulatory changes and

modify the business models to match the new market situations.

Organic growth in international markets

The ability to source customers in numerous countries pan-Europe

diversifies risks and leads to a competitive advantage over

consumer loan providers operating only in one or a few markets.

Superior resources - a geographically diversified platform requires

a significant amount of funds, time and effort as well as

implementation of advanced control systems and management

processes.

In more than 10 years of operations, the Company has built a

scalable IT and business systems. It has also acquired local skills

such as understanding of local customers and regulatory regimes.

Advanced data analytics and marketing

Real-time

Creditstar Group pursues data and analytics to build competitive advantage and improve the customer experience, loan

underwriting, scoring.

The Company is able to analyse big data volumes. That has resulted in improved marketing methods which can accommodate

growth in current target markets and further international expansion.

Real-time credit scoring and underwriting analytics

11

Optimization

Marketing optimization and customer segmentation analytics

Automated decisions

Advanced statistical and machine learning models to make better

lending decisions, detect fraud, and expand the customer base

more effectively

Multiple data points

Creditstar Group is using and developing scoring models (cross-

country) based on thousands of data points to assess customers’

credit risk.

Superior quality

This translates directly into better credit quality and improved client

acceptance policies

Scoring models reduce credit losses while at the same time increase revenue through expanding client base. In addition, such

unified credit scoring model also provides the Company with an advantage when entering new markets

Marketing

Loyalty programmeData driven marketing – cost-efficient, expansion to new

markets.

The Company has designed a customer loyalty concept, which

gives the returning customers an incentive to use Creditstar’s

services.

▪ Based on the number of loans taken clients acquire a certain

status. With every status upgrade the credit limit of the client

increases.

▪ Special offers and awards for loyal customers.

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Customer retention

▪ Segmentation and automation with direct marketing through

different channels (e-mails / online retargeting / telemarketing /

SMS campaigns)

▪ Marketing automation and its special purpose software

react to predefined triggers (e.g. visit to our website or

furthermore logging in to the user account section of our

website). can include conditions (e.g. reacting only to a

predefined specific customer segment). Actions (e.g. web

banners with specific communications and a trigger to a call

centre when no action is evidenced within certain amounts of

days).

Channels

▪ TV advertising campaigns in countries where the market

position is adequately established.

▪ New markets - variety of digital marketing options.

In-house marketing team

▪ The execution of marketing activities is done by Creditstar’s in-

house marketing team, working together with digital marketing,

performance marketing and media agencies in different

countries

▪ Post-launch - full service performance marketing agency –

learning best practises

▪ Later - shift the dominant share of the marketing execution to

the in-house team. Agency partners continue, but with more

specific and limited assignments

Economies of scale

▪ Benefits of becoming more international – marketing

partnerships across the countries, convenience, cost savings

Automation and data analysis give better feedback of what works well and what doesn’t leading to better decisions and more value

gained for each euro spent

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▪ Under supervision as a public

consumer credit lender (Creditor)

by Estonian Financial Supervisory

Authority - Finantsinpektsioon.

▪ http://bit.ly/2flmoBH

▪ http://bit.ly/2eFWpU0

▪ Authorised and regulated by the

Financial Conduct Authority under

registration number 675392.

▪ http://bit.ly/2e7NAWA

▪ Regulated by the Finnish

Regional State Administrative Agencies

▪ http://bit.ly/2flqmuc

▪ Authorised and Regulated as a consumer

credit company by the Swedish Financial

Supervisory Authority – Finansinspektionen.

▪ http://bit.ly/2f0HAhI

Compliance and regulation

▪ Under supervision as a

public consumer credit lender by the

Central Bank of Lithuania.

▪ http://bit.ly/2fBufya

▪ Trade License for Provision or

intermediation of consumer credit.

▪ http://bit.ly/2fKga0G

Customers

GEOGRAPHIC BREAKDOWN OF CUSTOMERS1 CUSTOMER AGE NO OF LOANS TAKEN BY CUSTOMERS1

PROFILE OF AN AVERAGE CUSTOMER

EE 34%

FI13%

SE4%

LT10%

PL19%

UK13%

ES6%

CZ1%

18-259%

26-3544%

34-4522%

46-5515%

56 and older10%

149%

216%

38%

46%

5 and more21%

Note: Information as of Q4 2016

1: All customers who have taken at least one loan from Creditstar Group since the start of operations in 2006

Summary

▪ Creditstar has a very good understanding of its existing customer

base. The behaviour of all customers, both new and existing, is

closely monitored.

▪ Creditstar’s customer loyalty programme has increased customer

retention rates and lowered counterparty risk for Creditstar.

▪ Creditstar has 349,000 registered users. 272,000 of

them have taken at least one loan and/or have logged in the

homepage at least once during last 12 months

Profile of an average customer

The typical Creditstar’s customer remains out of the focus of large

commercial banks

Key characteristics of the typical customer:

▪ Active young male

▪ Lives in a small town

▪ Belongs to the age group 26-35

▪ Has taken a loan more than once

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Underwriting process

Summary

▪ Creditstar issues loans according to strict underwriting process

which complies with applicable regulations and internal

procedures.

▪ Some specifics in the registration and loan application process

varies depending on the legislation of the country in which the

customer applies for the loan

▪ In all cases, loan application process is completed in a short

period of time

▪ Approximately 60% of loan application are approved in Estonia

and approximately 20% are approved in other markets.

Responsible lending policy

In all geographic markets, Creditstar operates according to

responsible lending policy. The policy includes such rules as:

▪ Thorough background check for all loan applicants

▪ Loan is not granted for repayment of other loans

▪ Simple customer agreements

▪ Marketing message calls for reasonable borrowing

▪ Loan Administrator

contacts first time loan

applicant by phone to

confirm the information

▪ Verification of contact

address and mobile

phone number

▪ Through mobile phone

or website

▪ All new customers are

required to provide

personal information

such as liabilities,

income, employer

▪ Loan applicants’

financial background is

checked with the credit

assessment agency

▪ Credit history with

previous loans

▪ Credit scoring and

underwriting analytics

▪ Phone call with each

customer

▪ Loan is transferred to the

client’s account

▪ Payment schedule and

loan agreement are sent

to customers mailbox at

Company’s webpage

▪ Registration at

Company’s website

▪ Required only for new

customers

▪ Primary customer

identification. All new

customers in Estonia

are identified face to

face (about to be

dropped as regulation

was relaxed)

REGISTRATION LOAN APPLICATION SOLVENCY CHECK LOAN APPROVAL

FINANCIAL CHECK

CREDIT SCORING

Over 70% of loan applications are rejected due to

conflict with these rules

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up to 499 EUR44%

500-999 EUR42%

1000 and more14%

0

7

14

21

28

35

42

49

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Loan portfolio

Summary

Variable Value

Number of loans outstanding Loans 57,000

Gross value of the loans EUR 56,820,000

Average size of a loan EUR 994

Impairments EUR 13,411,000

BREAKDOWN OF LOAN SIZES LOANS BY MATURITY LOAN PORTFOLIO AFTER PROVISIONS (M EUR)

up to 6m34%

over 6m66%

Note: Information as of Q4 2016

PROFILE OF AN AVERAGE CUSTOMER

Non-performing loans

▪ Majority of the non-performing loans have been recoverable – the

small size of the loans has helped to keep recovery rates at high

levels.

▪ Historically 5-10% of all loans fail to comply with the initial or

extended payment schedule. Such loans are recovered with a

help of external debt collection service or bailiffs.

▪ Only less than 1% of the loans have not been recoverable due to

several reasons e.g. bankruptcy, death, fraud, etc.

▪ Creditstar has not lost a single court-case to its debtors.

30%CAGR (‘07- ‘16)

16

-1% 1%

22%18%

56%

38%

2011 2012 2013 2014 2015 2016

Financial highlights

Profitability Growth

The Company has been profitable since its establishment. Company’s net

and operating profit margins have remained strong in different economic

and legal settings and various markets.

Impairments

The Company has shown strong track record and double digit growth

rates since 2013. In 2017 the Company continues too see strong growth in

demand for its products and services in different geographic markets.

The quality of Company’s customer loan portfolio has improved over the

years. Impairment charges per period relative to customer loan portfolio

have been shrinking for the last years.

Interest margin

While the net interest margins have been stable after the introduction of

tougher regulation, the net interest income has steadily grown in absolute

numbers. For example, CAGR for period 2013 – 2016 was 17%.

interest income growth, y-o-y

impairments to loan portfolio1 net interest income3, th EURnet interest margin2

2: (interest income / average loan portfolio) – (interest expense / average borrowings)

3: interest income – interest expense – loan impairment charges

1: impairments per period over loan portfolio (last twelve month impairments /

average loan portfolio)

17

43%38% 37% 38%

29% 30%

18%15%

18% 20%

13% 11%0%

10%

20%

30%

40%

50%

2011 2012 2013 2014 2015 2016

Net margin Operating margin

12%

9%

7%6%

6%8%

2011 2012 2013 2014 2015 2016

4,578 4,644 5,646 6,644 10,365 14,316

27%

24% 23%

19%

24%27%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2011 2012 2013 2014 2015 2016

-4,000

1,000

6,000

11,000

16,000

Financial performance

Creditstar - profitable throughout its history

net profit, figures in thousand EUR

Fintech company with strong balance sheet

equity and liabilities, figures in million EUR

Operations with accurate cost control

efficiency ratio = (operating expenses + wages&salaries) / revenue

Creditstar has established strong internal processes that ensure

lean and efficient operations. Efficiency and cost control has not

suffered even after expansion to other geographic markets.

Successful debt management

▪ 5 – 10% of issued loans are classified as non-performing because

they fail to be paid according to the initial or extended schedule

▪ If a client has an overdue loan, Creditstar engages in a

negotiation with the client to find a solution and solve the situation

▪ Creditstar takes conservative approach to making necessary

provisions for overdue loans

▪ Total impairments: EUR 10.5 M (as of Q4 ’15)

▪ Substantial part of loans under provision can be recovered. The

non-recoverable loans are less than 1% of the total loan

portfolio

Company has managed to make than EUR 1 million of net profit on

each of the last 4 years.

18

829 6881,033

1,355 1,2961,640

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016

30% 28% 30% 29%

42% 42%

0%

10%

20%

30%

40%

50%

2011 2012 2013 2014 2015 2016

6 7 8 9 11 127

1012

16

25

35

5

10

15

20

25

30

35

40

45

50

2011 2012 2013 2014 2015 2016

Equity Liabilities

CREDITSTAR GROUP AS

Lõõtsa 5

11415 Tallinn, Estonia

Phone: +372 698 8710

Fax: +372 653 1508

www.creditstar.com