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Ferratum prepares for IPO


Ferratum Capital Germany GmbH / Key word(s): IPO

07.11.2014 / 17:27


Ferratum prepares for IPO

- Ferratum, an international provider of mobile consumer loans, plans IPO on the Frankfurt Stock Exchange

- Banking sector is changing: significant market growth for mobile banking by worldwide increasing smartphone usage and change in consumer behavior

- Ferratum with longstanding expertise in the area of "mobile banking services" is well positioned to be established as mobile bank in the age of digital revolution

Helsinki/Berlin, November 7, 2014 - Ferratum Oyj (together with its consolidated subsidiaries hereafter "Ferratum Group" or "Ferratum"), an international provider of mobile consumer loans headquartered in Helsinki, is preparing an IPO on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange.

As one of the first European providers of mobile consumer loans, Ferratum has developed into a leading provider of such loans in Europe, Australia and New Zealand. Since it was founded in 2005, Ferratum has expanded steadily. Ferratum employs more than 350 people and is currently operating in 19 countries. Its business is designed for fast, easy and transparent loans to consumers. Loans in the amount of EUR 25 to EUR 2,000 may be requested via the Internet or mobile devices. After a software-based testing method on the creditworthiness of the customers, a decision on granting a loan is made within a few minutes. Internationally, more than 2.8 million people have registered at Ferratum. Ferratum Bank Ltd, one of the Group's subsidiaries holds an EU credit institution licence, which enables the Ferratum Group to engage in regulated transactions that require a banking licence in all EU Member States.

Sustainably profitable business development

In 2013, Ferratum generated revenues of EUR 58.2 million. The average annual growth rate (CAGR) has been over 40% since 2009. The EBIT margin amounted to 12.6% in 2013. In the first nine months of 2014 Ferratum's revenues reached EUR 49.4 million (first nine months of 2013: EUR 43.4 million). At the same time Ferratum increased its profitability: Operating profit (EBIT) strongly increased by 47.4% to EUR 8.5 million (first nine months of 2013: EUR 5.7 million). The EBIT-margin of 17.1% highlight Ferratum's profitable growth path (first nine months of 2013: 13.2%). Earnings before taxes (EBT) rose sustainably by 54.6% to EUR 5.8 million (first nine months of 2013: EUR 3.7 million) resulting in an EBT-margin of 11.7% up from 8.6% in the first nine months of 2013. The consolidated results after tax also developed favorably and stood at EUR 4.6 million in the first nine months of 2014 after EUR 3.4 million in the first nine months of 2013.

Jorma Jokela, founder and CEO of Ferratum Group, embraces the planned IPO as a great opportunity to push Ferratum forward towards profitable growth: "The banking sector is in a time of upheaval: The smartphone boom acts as a driver for the development of digital applications - including financial services. This increases the pressure on traditional banks and pushes our market opportunities at the same time. After having successfully established our micro loan business, we plan to expand our business by offering additional banking services as a logical next step. The main focus is on simple mobile solutions that meet modern customer expectations and replace going to a bank branch. In short - with Ferratum the smartphone turns into a mobile bank."

Mobile Banking with significant market potential

Things of everyday life are increasingly being completed via smartphones. According to recent forecasts, the number of overall registered smartphone SIM cards is assumed to reach 6 billion worldwide by 2020. The number of users who use their smartphone for private banking purposes is expected to nearly double worldwide from 590 million in 2013 to up to one billion in 2017. At the same time is the yearly smartphone sales volume expected to reach more than one billion in 2017. Ferratum believes the banking sector is also changing as a result of these trends and aims to take advantage of its strengths over traditional market participants with its grown technological capabilities and specialized know-how in the areas of mobile and banking when it comes to delivering innovative mobile solutions for the modern banking customers. Ferratum also believes it can further benefit from its optimized scoring software and its expertise to the processing and analysis of a wide range of customer data.

Continue growth strategy consistently

Jorma Jokela considers Ferratum's position to be promising: "As a pioneer of mobile consumer loans with a broad geographic presence in 19 countries, Ferratum has profound knowledge in the field of mobile consumer facing business. Due to our EU banking licence and our established Big Data technology, we are in an excellent position to establish ourselves as a mobile bank in the age of the digital revolution in the banking sector. The planned IPO is a logical step to fund sustained growth and business expansion." In October 2013, Ferratum's German subsidiary Ferratum Capital Germany GmbH successfully issued a bond with an issue volume of EUR 25 million in Germany to finance the Ferratum Group's further market penetration and expansion into new markets.

Ferratum plans to continue the implementation of its growth strategy with the expected IPO proceeds, by focusing on (i) organic growth in existing markets, (ii) the continued geographic expansion, (iii) the diversification of its product portfolio, and (iv) the vision to establish a leading mobile bank. Specifically, Ferratum aims to expand its operations to a total of 30 countries in the mid-term and to address different customer segments through new and recently introduced products. At the same time Ferratum wants to expand its market position in existing markets and strengthening its brand awareness there. In addition, Ferratum plans to expand the core business by launching a multi-banking app, which will serve customers as a central platform for all of Ferratum's existing products, and is planned to include the option of opening a current account with other deposit products, and may eventually offer customers new loan products and third-party products.

ICF BANK AG has been appointed as Sole Global Arranger and Sole Bookrunner. Co-Lead Managers are equinet Bank AG and Hauck & Aufhäuser Privatbankiers KGaA.

Further information on Ferratum Group, the business model and the management are available on our website https://www.ferratumgroup.com/ in the Investor Relations section.

About Ferratum Group:

The Finnish Ferratum Group, a pioneer for mobile micro credits in Europe, offers short-term consumer loans. Ferratum's customers can utilize digital media to apply for consumer credit in amounts varying between EUR 25 and EUR 2,000. Managed by its founder Jorma Jokela Ferratum has expanded rapidly since it was founded in 2005: Internationally, more than 2.8 million people have registered at Ferratum. In the fiscal year 2013 the annual revenue amounted to around EUR 58 million with an EBIT margin of 12.6%. Ferratum is represented in 19 markets and employs more than 350 people.

Contact:
Ferratum Group cometis AG
Dr. Clemens Krause, CFO
T: +49 30 88715308     
F: +49 30 88715309     
M: [email protected]   

Henryk Deter | Mariana Kuhn
T: +49 611 20 58 55-61
F: +49 611 20 58 55-66
M: [email protected]

Disclaimer

This corporate news does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States, Australia, Canada or Japan or in any jurisdiction in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the "Securities Act"), or an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The securities referred to herein may not be offered or sold in the United States of America, Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of the United States of America, Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States. A public offer may only be made in Finland and Germany after publication of a prospectus prepared in accordance with Finnish securities laws and approved by the Finnish Financial Supervisory Authority. Any securities orders received prior to the commencement of a public offer will be rejected. If a public offer is made in Finland and Germany, a prospectus prepared in accordance with the provisions of Finnish securities laws will be published and will be available free of charge at https://www.ferratumgroup.com.





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295951  07.11.2014


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