Eleving Group reports unaudited results for the nine months ended 30 September 2021

Record profitability as a result of steady operational and financial performance

OPERATIONAL AND STRATEGIC HIGHLIGHTS

• Record-high nine-month (ended on 30 September 2021) disbursement of loans driven by strong q-o-q performance, reaching the quarterly CAGR of 18.4% for 2021
• Key performance indicators by now already exceeding full last years` results: revenue EUR 112.6 million, EBITDA EUR 45.7 million, Net Profit Before FX EUR 13.7 million
• Substantial milestones achieved in Q3 2021:
  • EUR 900 million loans issued since inception
  • A quarter-of-a-millionth car financed
  • Group’s team surpassed 2,000 employees’ mark
• Continued strong performance in productive lending in the motorcycle-taxi segment in eastern Africa:
  • During Q3 in Kenya lending levels for motorcycle loans was at EUR 9.3 million, thus reaching quarterly CAGR of 30.7% for 2021
  • During Q3 in Uganda lending levels for motorcycle loans was at EUR 2.7 million, thus reaching quarterly CAGR of 48.3% for 2021
• Strong and steady performance in the consumer finance markets of North Macedonia, Albania, and Ukraine, driven by the launch of new products. Net loan portfolio in all the consumer finance markets reached EUR 50.9 million
• Successful Eurobond issuance in the amount of EUR 150 million; bonds listed on the Frankfurt Stock Exchange being one of the largest bond issuances by a private company headquartered in the Baltics
• Launched long-term ESG strategy development in partnership with Nordic sustainability consultancy firm, defining priorities and goals derived from a materiality analysis examining stakeholders` expectations
• Actions taken to increase green vehicle proportion in the Group`s portfolio by launching special product to finance electric and hybrid cars. Lithuania and Romania as first markets, next to follow

FINANCIAL HIGHLIGHTS AND PROGRESS

• Record profitability as evidenced by:
  • Record-high quarterly EBITDA—EUR 40.8 million (9M 2020: EUR 24.7 million) and adjusted EUR 45.7 million
  • Net Profit before FX—EUR 8.8 million (9M 2020: EUR 2.5 million) and adjusted—EUR 13.7 million
  • Net Profit after FX—EUR 9.2 million (9M 2020: EUR 2.5 million loss) and adjusted—EUR 14.1 million
• Record-high portfolio—EUR 229.0 million, a EUR 17.1 million increase q-o-q; Eleving Vehicle Finance accounted for EUR 178.1 million, Eleving Consumer Finance—for EUR 50.9 million respectively
• Eleving Group’s funding maturity profile extended by five more years due to successful Eurobond issuance. New secured Eurobonds were issued at par with an annual interest rate of 9.5% and maturity in 2026
• Fitch Ratings assigned a senior secured debt rating of ‘B-(EXP)’ with a Recovery Rating of ‘RR4’ to Eleving Group’s new Eurobonds

Modestas Sudnius, CEO of Eleving Group, commented: “By keeping the strategic focus on the Group’s existing markets and continuing to pursue steady growth, Eleving Group has reached multiple substantial milestones in the third quarter of 2021. Our nine-month key performance indicators have already exceeded the results of the entire 2020, and so far, we are turning in the best financial performance in the Group’s history. We have managed to strengthen our position across all Eleving markets. We continue to demonstrate strong quarter-on-quarter growth in Kenya and Uganda, where we are focusing on motorcycle-taxi financing. Also, we have achieved the highest issuances since the beginning of the pandemic across multiple vehicle financing markets (Estonia, Moldova, Belarus), and we are steadily shifting consumer finance portfolio to longer maturity, higher ticket products.

Eleving Group also saw a landmark Eurobond issuance in the amount of EUR 150 million, with the bonds listed on the Frankfurt Stock Exchange. We are grateful to our investors’ community across Europe, who showed trust in the company and our vision. The money raised will allow us to refinance our current obligations and secure stable financing for the company in the foreseeable future. Not only was this a milestone for Eleving Group but also for the Baltic capital markets since it has been one of the largest bond issuances of all time by a private company headquartered in the Baltics. In the third quarter of 2021, we continued to implement our ESG strategy. We have designed green vehicle—electric and hybrid—financing products, which were introduced in Lithuania and Romania, with new markets to follow soon. Additionally, we have embarked on a course of offsetting the Group’s carbon footprint and kicked-off a process for developing long-term ESG KPIs.”

Maris Kreics, CFO of Eleving Group: “The record profitability achieved in the first nine months of 2021 conclusively determines Eleving Group’s course to the best financial year in its history, proving the soundness of this and last years’ strategic decisions. The excellent profitability was boosted by the highest-ever nine-month adjusted EBITDA of EUR 45.7 million and record-high portfolio of EUR 229 million, contribution to which was made by both of our business lines—vehicle and consumer financing (Eleving Vehicle Finance and Eleving Consumer Finance accounted for EUR 178.1 million and EUR 50.9 million respectively). The Group’s Net Profit reached EUR 9.2 million, which is an impressive leap compared to the EUR 6.8 million losses made in the nine months of 2020.

As a result of the successful Eurobond issuance in the amount of EUR 150 million, Eleving Group’s funding maturity profile has been extended by five more years. New secured Eurobonds were issued at par with an annual interest rate of 9.5% and maturity in 2026. The proceeds were used to repay the previous Eurobond outstanding in the total amount of EUR 100 million as well as refinance other liabilities outstanding.”

The full unaudited report for the nine months ended 30 September 2021 is available under: https://eleving.com/investors/

Conference Call:

A conference call in English with the Group’s management team to discuss the results is scheduled for 16 November 2021 at 15:00 CET.

Please register: http://emea.directeventreg.com/registration/8478402

Contact:

Eleving Group

Maris Kreics, Chief Financial Officer (CFO)

Email: maris.kreics@eleving.com