IuteCredit reports unaudited results for 3M/2021
Drive for growth is stronger than third-wave headwinds

OPERATIONAL HIGHLIGHTS

• Loan payouts increasing y-o-y but miss internal growth targets reflecting impact of third wave on consumer demand.
• Growing share of repeating customers in maturing markets drives longer maturities above 18 months, while portfolio amortization slows.
• Number of performing loan customers remained at 136,000.
• Repayment discipline (Customer Performance Index, CPI) fully recovered and above pre-pandemic levels.
• Balance sheet up 1,9% to 118,9 million EUR with growth ruling over third pandemic wave.
• Number of loans signed up y-o-y 1,4% to 32.589 (3M/2020: 32.152) steadily increasing as of March.
• Principal amount of loans issued increased 2,6% to 32,6 million EUR (3M/2020: 31,7 million EUR).
• Gross loan portfolio stable at 94,5 million EUR (31 December 2020: 95,0 million EUR) after falling to 90 million EUR in the course of the pandemic.
• Net loan portfolio up 2,0% to 80,8 million EUR (31 December 2020: 79,2 million EUR) posting upbeat as of March.

• Profitable ATM-roll-out continuing - start in Albania and Macedonia as of Q2.
• Digitization journey gathering momentum with evolution of My Iute App towards fully digital customer journey and for upcoming breakthrough of online shopping in operating countries.
• Bulgaria starting up again - full operational effect as of Q3.
• Cash pile-up in search of strategic acquisitions.

FINANCIAL HIGHLIGHTS

• Interest and commission fee income down 17,3% to 10,7 million EUR (3M/2020: 12,9 million EUR) driven mainly by lower APRs and longer maturities of loans and by waiver of historically accrued fees as reaction to Moldovan legislation on total fees cap.
• Net interest and commission fee income down 26,3% to 7,5 million EUR (3M/2020: 10,2 million EUR) in connection with bond related to planned expansion of business activities.
• Total income down 11,3% to 13,9 million EUR (3M/2020: 15,7 million EUR).
• Cost to income ratio at 38,5% (3M/2020: 28,5%) as result of smaller fee income.
• EBITDA decreased by 9,7% to 4,9 million EUR (3M/2020: 5,4 million EUR).
• Net profit at 1,1 million EUR (3M/2020: 1,5 million EUR).
• Strong capitalization and profitability exceeding Eurobond covenants.

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

"Macroeconomic development in Q1 was not as positive as we had expected after the second wave of the coronavirus pandemic and even before Christmas. Instead, lockdown measures in reaction to the third wave limited loans demand in shops and also cut off customers from their income streams in varying degrees. To make matters worse, the start of vaccinations in the Balkan countries did not progress as fast as in most EU countries. And, infection, hospitalization and mortality rates per 100,000 population beat the records. Yet, the public spirit and the joy of life in our markets remained strong. Although we missed our own growth targets, we succeeded in achieving a small growth when the third wave hit full force. No comparison with the previous year, when we met the first wave with a strong contraction of the balance sheet and experienced a temporary freefall in our customers' repayments. So, no doubt, this year is much better, we have retained the drive for growth and this drive is stronger than the third wave in its full fledge.

So investors' money continues to be invested productively. According to our current assessment, we will need more capital during 2021 to finance growth given the downward trend of APRs.

Taking into account the just-completed Q1 and the continued volatile prospects, our growth outlook for 2021 obviously needs to be adjusted, too. We expect total assets to increase to 170 million EUR by the end of the year and total sale revenue to exceed 55 million EUR, with net profit above 6 million EUR," said Tarmo Sild, Group CEO of IuteCredit.

The full unaudited report for 3M/2021 is available under iutecredit.com/reports/.

Earnings Call:

CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 3M/2021 results by means of a webcast presentation on 20 May 2021, 10.00 CEST. The webcast/call will be held in English.

Please register in time to participate in the webcast/call at:
IuteCredit Europe - Earnings Call 3M 2021.

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

Contact:

IuteCredit
Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: kristel.kurvits@iutecredit.com
Phone: +372 50 88 77 0

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