IuteCredit reports unaudited results for 3M/2020
Pleasing 3M results - Outlook for 2020 as a whole affected by COVID-19 pandemic

OPERATIONAL AND FINANCIAL HIGHLIGHTS

- Number of loans issued in period under review up 10% to 32.152 (3M/2019: 29.223)

- Principal amount of loans issued up 8% to 31,7 million EUR (3M/2019: 29,3 million EUR)

- Gross loan portfolio up 4% to 96 million EUR (31/12/2019: 92 million EUR)

- Personnel increase to 360 employees (31/12/2019: 347 employees) in line with the expansion of business activities

- Interest income up almost 62% to 12,9 million EUR (3M/2019: 8,0 million EUR)

- Net interest and commission fee income increased more than 59% to 10,2 million EUR (3M/2019: 6,4 million EUR)

- EBITDA increased by almost 32% to 5,4 million EUR (3M/2019: 4,1 million EUR)

- Cost to income ratio at close to 29% (3M/2019: 58%), reflecting different portfolio size and corresponding income as well as IT development costs recorded as expenses in 3M/2019 which were reclassified to intangible assets at the end of 2019.

- Net profit for the period decreased by more than 16% to 1,5 million EUR (3M/2019: 1,8 million EUR) mainly due to foreign exchange losses in amount of 2,2 million EUR.

Tallinn, Estonia, 4 May 2020. IuteCredit Europe ("ICE"), a leading European personal finance group, reported today unaudited results for 3M/2020.

"The Q1 2020 results were pleasing and almost in line with our targets. IuteCredit Group grew its loan portfolio at strong annual percentage rates, attracted more customers, and the customers maintained good repayment discipline. All in all, that resulted in a net profit of 1,5 million EUR. Adjusted for exchange rate losses, our net result would have been 3,7 million EUR. Nevertheless, the 3M report is only a glance into the rear mirror. As a result of the challenges posed by the COVID-19 pandemic, the strategic and operational approach for the second quarter of 2020 and beyond is much more relevant.

Cashflow now has a decisive function to steering, for example, the volume and price of loans issued and our operating expenses. In other words, new loans to customers can be originated only to the extent where we have met the loan repayment targets (cash in targets) and operating expense cut targets first.

Group cash position reached close to 9 million EUR (8% of the balance sheet) by the end of March and the cash share of the balance sheet is expected to exceed 12% by end of Q2. This is a historically unprecedented level that reflects the actions above.

In an operationally extremely dynamic environment, the primary objective of IuteCredit Management is to maintain both equity and debt capital and to guarantee interest payments to debt capital investors. To reach that objective, the company must at minimum break-even during 2020. At the same time, we collect and analyze extensive data to set IuteCredit for the time after COVID-19. We are convinced that the demand for consumer credit, backed by individual earnings, will again grow in the future. The current challenge is to build a bridge from today to this future. IuteCredit is well-armed to both mitigate the financial impact of COVID-19 and grow in the new post-crisis normality.

Taking into account the unprecedented challenges for society as a whole in connection with the unpredictable development of the COVID 19 pandemic, we are convinced, with commercial prudence, that we will not be able to achieve our initial targets for 2020 as a whole. The economic impact of the pandemic cannot be determined in detail or reliably quantified at present, so we expect IuteCredit results to be below those of the previous year," said Tarmo Sild, Group CEO of IuteCredit.

The full unaudited report for 3M/2020 is available under https://iutecredit.com/investor-relations/#reports.

Earnings Call:
CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 3M 2020 results by means of a presentation on 6 May 2020, 10.00 CEST. The call will be held in English.

Please register here: http://emea.directeventreg.com/registration/1999711.

The corresponding presentation will be available on the Company's website prior to the earnings call.

Contact:
IuteCredit
Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: kristel.kurvits@iutecredit.com
Phone: +372 55 88 77 0

Evelin Kanter, Group Chief Legal Officer (CLO)
Email: evelin.kanter@iutecredit.com
Phone: +372 50 52 72 9

Aalto Capital (Investor Relations)
Sven Pauly, Consultant
Email: sven.pauly@aaltocapital.com
Phone: +49 89 898 67 77 0

About IuteCredit:
IuteCredit - established in 2008 - is a leading European personal finance company. The Group is specialized in consumer credits via its 100% subsidiaries using equity and loan capital. IuteCredit serves customers currently in Moldova, Albania, North Macedonia, Bulgaria as well as Bosnia and Herzegovina.

IuteCredit's loan products are unsecured consumer loans with maturities between 1 month and 36 months and car-secured loans with maturities up to 60 months.

The mission of IuteCredit is to create the extraordinary experience in personal finance by exceeding customers' expectations.

www.iutecredit.com