Continuing stronger performance and on track towards greater financial flexibility

Riga, Latvia, 6 January 2021. Mogo Finance and its group companies (the “Group”), specialized in used car financing, is set to continue its strong performance in financial year 2021 under the ongoing COVID conditions. Following a successful 2020 based on a smooth transition to the “new normal” the Company achieved a record EBITDA of EUR 26 million in the nine months of 2020 (9M 2019: EUR 23 million) by establishing a more effective, productive and streamlined organizational structure. Progress was also made concerning the capital structure and financing conditions.

Preliminary discussions with leading investment banks on strengthening the capital structure as well as with investors and advisors on refinancing the Latvian subsidiary’s bonds due in March 2021 and the Eurobonds maturing in July 2022 underline the recognition of the achievements.

Furthermore, Mogo Finance impressed by proving its compliance with the terms and conditions at all times, even following the temporary waiver of the financial covenants to ensure security for investors and growth and profitability for the Group in the changed economic environment of the COVID crisis. As a result, almost 40% of investors signaled their support for, among other things, the inclusion of a gradual reversal of the covenants to the original values in the bond terms and conditions to facilitate greater financial flexibility at a bondholders’ meeting announced in fall.

As a result of portfolio optimization with a consistent focus on the most profitable and highest ROI markets, Mogo Finance expects revenues of EUR 90 to 95 million (FY 2019: EUR 77 million) and EBITDA of EUR 37 to 40 (FY 2019: EUR 32 million) million for the ended financial year 2020. With the new strategic orientation, the multi-channel fintech approach, while successful and sustainable in the long term, it is expected to develop further and lead to revenues of EUR 160 to 170 million and EBITDA of EUR 60 to 65 million in 2021.

Mogo Finance will be reporting its unaudited financial year 2020 results Mid-February 2021. Details on the convening of the bondholders’ meeting will be announced shortly.

Contact:

Mogo Finance

Maris Kreics, Chief Financial Officer (CFO)

Email: maris.kreics@mogofinance.com

Aalto Capital

Sven Pauly, Investor Relations (IR)

Email: sven.pauly@aaltocapital.com

About Mogo Finance:

Mogo Finance is one of the leading and fastest-growing used car secured financing companies on a global scale. In selective markets, the Company also utilizes consumer lending as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across 14 countries. Up to date the Company has issued over EUR 585 million secured loans and running a net loan and used car rent portfolio of over EUR 192 million. Mogo offers secured loans up to EUR 15,000 with a maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace unmatched by its rivals. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Physical footprint enriched with excellent customer journey makes Mogo Finance top of mind brand in its industry. A state-of-the-art car portal supports cross-selling potential from re-possessed cars to leasing and vice versa. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include the Near East, the Caucasus and Central Asia as well as Eastern Africa.

www.mogofinance.com

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