IuteCredit reports unaudited results for 12M/2020
Q4 below expectations in wake of overoptimism - Looking ahead to 2021 affirmatively and impatiently

OPERATIONAL HIGHLIGHTS

• Loan payouts increasing - lower-than-expected rate, reflecting unanticipated low demand from consumers.
• Repayment discipline (Customer Performance Index, CPI) remaining good.
• Balance sheet up 10% to 116,6 million EUR despite controlled contraction in the course of the year.
• Number of loans signed in period under review up y-o-y 65,4% to 222.418 (12M/2019: 134.479).
• Principal amount of loans issued decreased y-o-y 23% to 117,7 million EUR (12M/2019: 152,2 million EUR).
• Gross loan portfolio up 3% to 95 million EUR (31 December 2019: 92 million EUR).
• Net loan portfolio stable at 79 million EUR (31 December 2019: 79 million EUR).

STRATEGIC HIGHLIGHTS

• Profitable ATM-roll-out continuing in Moldova using 1-time-passwords alongside My Iute App in Moldova and Albania contributing to personal contact reduction.
• Bulgaria back on track for growth after realignment.

FINANCIAL HIGHLIGHTS

• Interest and commission fee income down 5,4% to 44,5 million EUR (12M/2019: 47,0 million EUR).
• Net interest and commission fee income down 12% to 33,5 million EUR (12M/2019: 38,0 million EUR).
• Total income up 10% to 56,0 million EUR (12M/2019: 50,8 million EUR).
• Cost to income ratio at 32,4% (12M/2019: 42,8%), reflecting operational cost cutting.
• EBITDA increased by 3,5% to 20,9 million EUR (12M/2019: 20,2 million EUR).
• Net profit for the period decreased 37,4% to 5,2 million EUR (12M/2019: 8,4 million EUR).
• Strong capitalization and resilient profitability exceeding Eurobond covenants.

Tallinn, Estonia, 18 February 2021. IuteCredit Europe ("ICE"), a leading European personal finance group, reported today unaudited results for 12M/2020.

"The 2020 financial year was pandemic-ridden, but IuteCredit nevertheless succeeded in expanding its business.

The results of the past fiscal year are all the more gratifying as the outbreak of the Corona pandemic already at the end of the first quarter made it unlikely that the original forecast would be achieved. Thus, in Q2, we focused on collecting receivables and reducing the balance sheet in a disciplined manner, while at the same time we experienced a shortfall in loan repayments and in demand for new loans likewise. Moreover, we built up buffers for future loan losses and adapted to regulations on containment measures, lockdowns and financial grace periods. Consequently, after the contraction phase, IuteCredit achieved relatively good results with limited losses. As momentum picked up in Q3, the outlook for renewed growth and the reversal of credit provisions also brightened. Finally, Q4 was mixed. While loan disbursement volumes were below plan, repayments increased more strongly than expected.

On the bottom line, we ended the past financial year above the 2019 year-end figures, even though revenues at 56 million EUR (2019: 51 million EUR) were well below the targeted 75 million EUR. Total assets also fell short of the targeted 200 million EUR accordingly, increasing to 117 million EUR (31 December 2019: 106 million EUR). All in all, we ended the year with a bigger, stronger and significantly more liquid balance sheet, which we plan to leverage in 2021.

Beyond the balance sheet, IuteCredit's strong performance continued with ongoing investments in financial technology. For example, we introduced cardless ATMs and the MyIute app, a next-generation omnichannel technology for more efficient and seamless online interaction with customers.

So overall, we succeeded in both staying true to our mission of providing our customers with exceptional personal finance experiences and still operating profitably in times of crisis. At year-end 2020, we had more than 130,000 performing loan customers in four countries and achieved a net profit of 5 million EUR.

For 2021, we remain positive with a view to the credit and payments industry adapting to the challenges of the pandemic. We expect IuteCredit to benefit from its digitalized value streams, customer self-service solutions and opportunities in the acquisition market. In addition, the business in Bulgaria should ramp up again. On the balance sheet side, we expect loans and payment services to almost double to 200 million EUR. We expect total sales of over 70 million EUR and net profit of at least 10 million EUR with over 200,000 high-performing customers by the end of 2021," said Tarmo Sild, Group CEO of IuteCredit.

The full unaudited report for 12M/2020 is available under iutecredit.com/reports/.

Earnings Call:

CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 9M/2020 results by means of a presentation on 19 February 2021, 10.00 CET. The call will be held in English.

Please register here: http://emea.directeventreg.com/registration/5375735.

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