Home Credit Group BVAnnual Results 2019

March 2020

This presentation has been prepared solely for informational purposes and shall not be considered as an offer to sell or the solicitation of an offer to buy, subscribe for orotherwise acquire any securities of or obtain lending services from Home Credit Group B.V., Home Credit N.V., PPF Group N.V., Home Credit Consumer Finance Co. Ltd.,or any of their affiliates in any jurisdiction and shall not be treated as any investment advice or recommendation.

Copies Of This Presentation May Not Be Sent To Countries, Or Distributed In Or Sent From Countries, In Which This Is Barred Or Prohibited By Law. Persons Into WhosePossession This Presentation Comes Should Inform Themselves About And Observe All Such Restrictions. Any Failure To Comply With These Restrictions May ConstituteA Violation Of The Laws Of Any Such Jurisdiction. This presentation is strictly private, confidential and personal to its recipients and shall not be copied, distributed orreproduced in whole or in part, nor passed to any third party. In accessing to this presentation, you acknowledge that this presentation is confidential and intended only foryou and you agree that you will not copy, distribute, forward or publish this presentation any other person.

The presentation does not take into account, in any way whatsoever, the investment objectives, financial situation or specific needs of its recipients. The material containedin this presentation may include information derived from publicly available sources that have not been independently verified. Certain information in this presentation isbased on management estimates. Such estimates have been made in good faith and represent the current beliefs of members of management. Those managementmembers believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, norepresentation or warranty (express or implied) is given that such estimates are correct or complete. Where this presentation quotes any information or statistics from anyexternal source, it should not be interpreted that Home Credit Consumer Finance Co. Ltd. or Home Credit N.V. or Home Credit Group B.V. has adopted or endorsed suchinformation or statistics as being accurate.

This presentation may contain forward-looking statements. These statements reflect the Home Credit Group B.V.’s current knowledge and its expectations and projectionsabout future events. By their nature, forward-looking statements are subject to a number of risks and uncertainties, many of which are Home Credit Group B.V.’s control thatcould cause the actual results and performance to differ materially from any expected future results or performance expressed or implied by any forward-looking statements.No representation or warranty whatsoever, express or implied, is made as to the accuracy, completeness, consistency or the reliability of the information contained in thisdocument and nothing contained in this presentation is, or should be relied upon as, a promise or representation. None of Home Credit Group B.V., Home Credit N.V. andHome Credit Consumer Finance Co. Ltd. accepts any liability for loss arising from the use of any information or acting on any opinion contained in this document. We retainthe right to change the contents of this presentation at any time without notice. Home Credit Consumer Finance Co. Ltd., Home Credit N.V., Home Credit Group B.V. andany other person are not under any obligation to update or keep current the information contained in this presentation or to correct any inaccuracies in any such informationwhich may become apparent or to provide you with any additional information. None of directors, officers, employees, direct or indirect shareholders, agents, affiliates,advisors or any other person accept any responsibility, liability or duty of care whatsoever for the contents of this presentation, and no representation or warranty, express orimplied, is made by any such person in relation to the contents of this presentation.

The numbers in this presentation are largely taken from the consolidated China GAAP financial statements of Home Credit Consumer Finance Co. Ltd. In this presentation,certain financial data and measures are presented which are not calculated pursuant to any accounting standard and which are therefore alternative performance measure.These financial data and measures are, among others, RoAA and NPL. These alternative performance measures are included to provide readers with further basis, alongwith standard accounting measures, for measuring the financial performance. Because of the discretion that the management has in defining and calculating thesemeasures, care should be taken in comparing these measures with similar measures used by other companies. Alternative performance measures have limitations asanalytical tools, and readers should not consider them in isolation, or as a substitute for analysis of results as reported under statutory accounting standards, and readersshould not place any undue reliance on the alternative performance measures.

For more information of Home Credit Group, please visit www.homecredit.net.

Disclaimer

3

Our strategy is to transform the way our customers purchase and make the things that matter in their lives affordable for

them in a convenient and efficient way by building long-standing relationships in our core high-growth markets

2019 KEY STATISTICS

Focus on

Digitalisation

• Distribution: Deployment of self handling offline POS application and remote self assisted application

• APP Registered users grew by more than 60% y-o-y to 70mn

• Market Place launched into 3 additional countries

• Underwriting: Fully automated process with 33 second median time to decision

• Collection: High efficiency of Voice bots and Tchat bots, 90% voicebots collection call with no human

intervention

Continued

Growth and

Evolution in our

Business

Operations

• Granted 32.8 million loans (POS and Cash) in 2019 or equivalent to 1 loan a second

• Leadership in POS lending through 477K POS, 764k tippers supporting referrals, 1,000 E-POS and

leveraging significant relationship with retailers

• Scale with 135mn+ customers served in our 23 years of operation

• New credit card license granted in Philippines. Successfully rolled out new revolving products across our

countries of operations

• Continue to win a number of awards in our key countries demonstrating the continue recognition of our

franchise

Strong

Financial

Results

• Stable revenue and portfolio growth (14% in net interest income, 16% in net loans)

• Cost of risk improved from 9.5% in 2018 to 8.6% during 2019

• Continued focus on OPEX productivity with Cost-to-income ratio decreasing from 44.3% to 42.6%

• Funding source diversification (including growth in joint lending volume and new partners onboarding)

• Profit before tax grew by 31% from EUR 469 mn in 2018 to EUR 613 mn in 2019

• Strong equity position of EUR 2.9 bn with equity-to-assets rising to 10.8%

4

Leadership position in core markets sustain profitable operations at scale backed by a strong balance sheet

2019 KEY STATISTICS

€400MnNet Income

#1POS leadership

in key markets1

32.8 MnLoans granted

135Mn+Borrowers served

67%New Volume from

Repeat Customers

<33sMedian Time to

Decision

€4.3BnOperating

Income

€613MMProfit before tax

€2.9Bn Equity

Operations in

10 countries

€21.7Bn Gross Loans

1 excluding India

5

Simple products distributed through an unparalleled omni channel network

PRODUCTS ALLOW CUSTOMER TO SHOP WHENEVER WHEREVER THEY WANT

Avg. line: €1,534 / Revolving

Revolving

Loans

Avg. size: €361 / Avg. tenor: 13 months

POS

Loans

Avg. size: €2,189 / Avg. tenor: 43 months

Cash

Loans

Additional

ProductsFlexibility | Protection | Warranties

✓

HC App

70MMRegistered

Users

Customer

applies via

website or

mobile app

Salesperson

verifies

customer

Go to

POS

1,000

E-shop

Partners

68KPOS

Sales Team

764KTippers

477KPOS

82

Product

Partners

52%

48%

Channel

Mix

6

Further integration of technology across the operations from sourcing to underwriting to collection to CRM

LEVERAGING ON SUPERIOR TECHNOLOGY

Paperless

Automated

Processing

Voicebot

& Chatbot

Mobile

ApplicationsCollections

SystemCRM

System

Customer

Care Centre

System

Credit

Decision

Engine

Mobile APP

• > 70 MM registered users

• Roll out of HC pay functions

• One stop shopping & customer

service functions enable

effective cross-sell

• Best Mobile Banking App 2019

in Markswebb's Digital Office

category in Russia

• Leverage wide selection of products at

attractive rates

• Driven daily user up by 40% in China

and Indonesia in 2019

• Convenient online experience allowing

for Online to Offline

Leveraging technology throughout the customer life cycle

Application Collection

Underwriting

CRM

Predictive

dialingBiometric

identification

A.I. feature engineering

Biometric ID

& Video

Interview

PropensityModel

Market Place

7

10,920 11,955

3,0833,773

1,915

2,581

2018 2019China CIS SSEA CEE

4,559 4,993

11,93813,913

529801

2018 2019POS Cash loan Revolving Other

17,46220,185

3,362

3,2882,823

3,117

2018 2019

Other assets

Cash and cash equivalents

Net Loans to customers

Net Loans to Customers by Geography1

+12% +16%

Total Assets Net Loans to Customers

(€ MM)(€ MM)

16.5%

9.5%

51.4%

(€ MM)

9.5%

34.8%

22.6%

22.4%

Y-o-Y Growth

Y-o-Y Growth

OVERVIEW OF ASSETS & LOAN PORTFOLIO

Solid growth in operations leveraging growing scale of business

• Growth of assets

driven by 16% growth

in net loan portfolio

• Loan portfolio as a

percentage of total

assets increased

from 74% to 76%

• Strong growth in all

clusters lead by

SSEA

• Prudent expansion in

China in

consideration of

external factors

1 excluding Others segment

8

6,776 7,348

11,96612,979

1,795

2,449

2018 2019

Debt Securities

Due to Banks & Other FinancialInstitutionsCurrent Accounts & Deposits fromCustomers

2,154

2,873

2018 2019

Continued diversification in Funding

FUNDING AND EQUITY

Funding mix evolution

+11%

Y-o-Y Growth(€ MM)

Equity

(€ MM)

8%

8%

36%

9.1% 10.8%Equity to

Assets

Ratio

• 210+ relationship

with banks and

financial institutions

• Greater penetration

of capital market with

36% y-o-y growth

• Key issuances:

• AT1 in Russia

• Financial

Bond in China

• CNY 11.5 Bn

ABS issued in

China

• INR 7.7 Bn

ABS in India

• Equity to asset

increased to 10.8%

driven by solid

profitability as well

as AT1 issuance in

Russia

9

3,2173,663

680

48356

103

2018 2019

Other operating income

Net fee and commission income

Net interest income

+7%

Operating income breakdown Average portfolio Yield, COF & NIM

(€ MM)

22.20% 22.50%

15.50% 15.50%

7.20% 7.50%

2018 2019

Average Portfolio Yield

Net Interest Margin

Cost of Funds

OPERATING INCOME

Stable portfolio yield and NIM during 2019

• Interest Income grew

by 16% in line with

portfolio growth

• COF increase slightly

due to an extension

of borrowing tenor to

match assets

• NIM remained stable

at 15.5%

• Net Fee &

commission

decrease due to

regulations in China

limiting our ability to

offer additional

products

10

Continued focus on cost efficiency and productivity enhancement

OPERATING EXPENSES AND EFFICIENCY

%

Personnel

Expense

136,483

123,888

2018 2019

88%

Total Operating and Administrative Expenses

(€ MM)

Cost-to-Income Ratio

Number of Employees

44.30%

42.60%

2018 2019

1,7501,810

2018 2019

87%

OPEX as %

of Assets 6.8%7.4%

• Personal operating

expenses grew by

0.3% y-o-y compared

to net loan growth of

16%

• Key initiatives:

- New technology

(e.g. VoiceBot)

- Increasing

efficiency of POS

network

- Reduction in

headcount

• Increase in scale /

operating leverage in

China and SSEAChina in low

30’s

11

Impairment Losses on Financial Assets

(€ MM)

Cost of Risk

NPL Ratio

127.6% 130.6%NPL

Coverage

Ratio

1,729

1,823

2018 2019

+5.5% 9.5%

8.6%

2018 2019

8.4%

5.6%

2018 2019

Improving asset quality

REVIEW OF ASSET QUALITY

• Improved credit

quality due to

ongoing portfolio de-

risking and increased

access to data and

better customer

segmentation

• Revision in credit

loss estimate at the

time of write-off and

alignment of the

estimate with latest

recovery

expectations

• Cost of risk reduced

as a consequence

12

469

613

422400

2018 2019

Pre Tax Post Tax

Strong pre-tax improvement

PROFIT BEFORE & AFTER TAX, RETURN ON ASSETS & EQUITY

Profit before & After tax

(€ MM)

Return on Adjusted Assets

Return on Adjusted Equity

+31%2.11%

2.45%

1.90%1.60%

2018 2019

Pre Tax Post Tax

24.12% 24.21%21.70%

15.80%

2018 2019

Pre Tax Post Tax

-5%

• Strong improvement

in profit before tax

due to positive jaws

with revenue growth

outpacing expenses

• Tax expenses

returned to a normal

level in 2019,

following a low level

in 2018, when certain

Deferred Tax Assets'

were recognized, in

particular in India

• Strong Net Income

delivered with

healthy ROAA and

RoAE

13

Chinese franchise shows resilience while facing regulatory changes and macro headwinds

GEOGRAPHICAL CLUSTERS HIGHLIGHTS - CHINA

Regulatory

• PRC government and our primary regulators, issued various laws and

regulations with the objective of curtailing unsustainable lending activities in the

market

• Amongst the main impact to our business was an interest rate cap introduction

the rate cap applied in China imposed a review of our product offering and a

reduction of our net fee and commission income

• China our biggest market impacted by the ongoing US – China trade war which

in part has negatively impacted the GDP growth rate

• The Baoshang takeover situation impacted the entire market sentiment

Results

highlights

• Net Loan grew from EUR 10,920 mn in 2018 to EUR 11,955 mn

• NPL decreased from 9.7% at the end of 2018 to 6.2% at the end of 2019, NPL

coverage ratio increased from 125.9% to 129.4% respectively

Macro

Key

Achievements

• Further leveraging of technology in physical POS with self service and remote

assistance

• Growth of Market Place driving App daily usage increase

• Execution of a number of high profile partnership including Webank

• Significant expansion of joint lending and capital market activity

14

Strong performance in other clusters

GEOGRAPHICAL CLUSTERS HIGHLIGHTS - CONTINUED

CIS

• Benefited from monetary easing and/or public spending to support the domestic economy

• Successful APP roll out awarded best Mobile Banking App in Russia

• Successfully issued a AT1 bond in Russia and gathered an increased amount of deposit in

Kazakhstan

• Net loan grew from EUR 3,083mn to EUR 3,773mn and NPL decreased from 3.7% to 3.1% at

the end of 2019 resulting in strong income

• Strong loan growth despite mature market

• Innovate and expand our distribution capacity both online and offline

• New revolving products met significant customers’ interest and satisfaction combined with

strong growth in mobile app daily users

• Net loan grew from EUR 1,513mn in 2018 to EUR 1,855mn in 2019, while our NPLs

decreased from 10.7% to 8.8%, net income achieved was amongst strongest to date

• Airbank achieves highest net income result to date

SSEA

• Significant improvement of our operations’ results as they mature and gain further critical scale

• Launch of market place and obtention of credit card licenses

• Turmoil in India local capital market and tax reform

• Further growth of joint lending in existing market or launch in new market

• Net loan grew from 1,915mn in 2018 to EUR 2,581 mn 2019, NPLs decreased from 6.2% to

4.1%, all countries turned profitable

CEE

15

Our Philosophy

We understand that our place in the financial industry gives us

an important role in enhancing financial inclusion, as we can

often be the first touchpoint for people encountering the

regulated financial system

CORPORATE SOCIAL RESPONSIBILITY AT HOME CREDIT

Financial Literacy

“Juan, Two, Three”

is a roving series of

workshops in rural

and urban areas

across the

Philippines

Poverty Reduction

Host seminars

focusing on various

key issues including

gender empowerment

Direct Aid

Donated 11 tonnes of

medical and personal

safety equipment as

well as RMB 1 mn to

Wuhan during the

Covid-19 outbreak

Students in Home Credit ’s “Blue Bird” programme for disadvantaged children in Russia

Estimed

3 million peopleImpacted by our CSR

programmes reached in 2019

*company estimate

Our focus is promoting financial inclusion and the conditions that facilitate financially inclusive societies

3 Pillars of HC’s CSR• Education, and financial literacy

• Poverty reduction

• Direct aid to our communities

As well as supporting employee

initiatives

16

Numerous accolades for customer experience, corporate and social responsibility or quality employer

2019 AWARDS

“Best Bank for CSR”Kazakhstan - AsiaMoney Magazine

“Most Trusted Brand” for Non-Banking Consumer Loans”Czech Republic Most Trusted Brand Awards

“Most Socially Responsible Consumer Finance

Company”Philippines - International Finance Magazine

“Excellent CSR Company Award”China Finance Winter Summit

Major Company Awards

China:

• CFC with Best Customer Experience,

Tsinghua University

Slovakia:

• Slovak Superbrand Award, Non-banking

category

Indonesia:

• Best Multi-Finance Company, Infobank

Digital Brand Awards

Air Bank (Czech Republic):

• 1st place, KPMG/Fincentrum Bank of the

Year contest

• 1st place, HN Best Bank contest

Product and Marketing Awards

Vietnam:

• Top 10 High-Quality Product, Vietnam

Institute for Economy and Culture

• Most Innovative CFC, International Finance

Magazine

Indonesia:

• Winner in Consumer Finance, Indonesia

Best Brand Awards

• Smartest Financing Channel, Electronic

City Awards

• Best Social Media Advertising, OJK Awards

Air Bank (Czech Republic):

• 1st place, Effie Marketing Awards

CSR Awards

China:

• Best CSR Fintech, 8th China Charity

Festival

Russia:

• Best Volunteer Project, Eventiada IPRA

Awards

Vietnam:

• Unique CSR Programme, Saigon Times

Kazakhstan:

• Best Bank for CSR, AsiaMoney

Magazine

Philippines:

• Most Socially Responsible CFC,

International Finance Awards

HR Awards

Indonesia:

• Best Retention Strategy, Best

Leadership & Development, HR

Excellence Awards

Philippines:

• Best Employee Engagement, Public

Affairs Gold Standard Awards

Air Bank (Czech Republic):

• Best Employer, Employer Brand

Research Awards

India:

• Best Employer Award, Kinetic

17

OUTLOOK AND RECENT EVENTS

New appointments

• Jean Pascal Duvieusart appointed CEO as Ondrej Frydrych returns to the helm of our Chinese operations.

Changes made to continue the execution of our strategy in a dynamic and fast changing industry

Coronavirus outbreak

• In China, where the outbreak started in early January, the economy and our business was impacted but our

business is fully operational as China goes back to work

• New volume dipped as people were confined home but is steadily recovering

• Our collections are fully automated

• Granted payment holidays to most affected customers

• Expect to see a slight increase in NPL levels in the short term due to the adjustment of our loan book

• Our balance sheet remains solid, our relationship with partners is strong and we have the capacity to

manage potential shocks in the short term

• No material impact observed to date in our operations in other countries but we continue to monitor markets

and assess potential impact

Other

• Velvon project: After reevaluating the project in Germany, it was decided to wind down the operations as

does not support the group’s renewed strategic focus on building long-standing relationships with

customers in its core, high-growth markets

• Revolving product: Credit Card license obtained in Indonesia

Appendix

19

HC GROUP B.V. BALANCE SHEET

As at 31 December

(€ MM) 2018 2019

Assets

Loans to customers 17,462 20,185

Cash and cash

equivalents3,362 3,288

Other assets 2,823 3,117

Total assets 23,647 26,590

Liabilities

Due to banks and other

financial institutions11,966 12,979

Current accounts and

deposits from customers6,776 7,348

Debt securities issued 1,795 2,449

Subordinated liabilities 199 15

Other liabilities 1,122 1,175

Total liabilities 21,493 23,717

Total equity 2,154 2,873

Total liabilities and

equity 23,647 26,590

For the year ended

31 December

(€ MM) 2018 2019

Interest income 4,601 5,325

Interest expense (1,384) (1,662)

Net interest income 3,217 3,663

Fee and commission

income837 661

Fee and commission

expense(157) (178)

Net fee and

commission income680 483

Other operating income 56 103

Operating income 3,953 4,249

Impairment losses on

financial assets(1,729) (1,823)

Operating and

administrative

expenses

(1,750) (1,810)

Profit / (loss) before

tax 469 613

Income tax (expense) /

benefit(47) (213)

Net profit / (loss) from

operations422 400