Unaudited results

for the twelve months

ended 31 December 2022
Content
3 Twelve months at a glance

4 Operational and strategic highlights

4 Financial highlights and progress

5 Comments from Eleving Group CEO and CFO

6 Outlook - Products & Strategy

7 About Eleving Group

7 Conference call

8 Financial review

17 Recent developments

18 Consolidated statements

22 Latvian operations only

24 Glossary and important information

12 months at a glance
330 000+ EUR 71.8 mln1
Total Number of Active Customers EBITDA, 12M 2022

EUR 288.9 mln EUR 183.8 mln2

Vehicle and Consumer Financing Net Portfolio Revenues, 12M 2022

Exceptional twelve-month EBITDA1 — EUR 71.8 mln

EBITDA, EUR mln1 Revenue, EUR mln2

71.8 183.8

55.6 153.7

35.2 88.4

2020 2021 2022 2020 2021 2022

Net portfolio, EUR mln Net profit before FX, EUR mln3

288.9 27.3
245.2
67.1
201.4 18.5
61.7
35.4

221.8
166 183.5 4.9

2020 2021 2022 2020 2021 2022

Vehicle Finance Consumer Finance

1
2020 EBITDA adjusted with an increase by one-off costs of: (a) Mezzanine payments for warrant EUR 2.5 mln; (b) amortization of fair value gain from acquisitions EUR 3.4 mln; (c) non-controlling interests EUR 0.4 mln; and
a decrease by one-off gains of: (a) fair value gain on acquisitions EUR 9.7 mln; (b) acquisition of trademark EUR 1.8 mln; (c) other one-off adjustments. 2021 EBITDA adjusted with an increase by one-off costs of: (a)
amortization of fair value gain EUR 3.2 mln; (b) loss resulting from subsidiary write-off EUR 1.0 mln; (c) bonds refinancing expense EUR 5.7 mln; and a decrease by one-off gains of: (a) non-controlling interests
EUR 5.0 mln. 2022 EBITDA adjusted with an increase by one-off costs of: (a) loss resulting from subsidiary write-off EUR 0.8 mln; and a decrease by one-off gains of: (a) non-controlling interests EUR 3.2 mln.

2
Adjusted with fair value gain on acquisition in 2020 in the amount of EUR 3.4 mln and subsequent amortization of portfolio gain in 2021 in the amount of EUR 3.2 mln.

3
2020 adjusted with an increase by one-off costs of: (a) Mezzanine payments for warrant EUR 2.5 mln; (b) amortization of fair value gain from acquisitions EUR 3.4 mln; and a decrease by one-off gains of: (a) fair value gain
on acquisitions EUR 9.7 mln; (b) acquisition of trademark EUR 1.8 mln; (c) other one-off adjustments. 2021 adjusted with an increase by one-off costs of: (a) amortization of fair value gain EUR 3.2 mln; (b) loss resulting
from subsidiary write-off EUR 1.0 mln; (c) bonds refinancing expense EUR 5.7 mln. 2022 adjusted with an increase by one-off costs of: (a) loss resulting from subsidiary write-off EUR 0.8 mln.
Eleving Group 4

Steady growth accompanied

by robust profitability

Operational and Strategic Highlights

▪ 2022 marked another successful year for the Group as the ▪ Midst Q4, the Group partnered with STIMA, a battery-swapping
revenue hit an all-time twelve-month high, and the net portfolio technology provider, and the Estonian ride-hailing unicorn Bolt
achieved annual growth of 17.8%, totaling EUR 288.9 mln. to promote climate-neutral mobility in Kenya by offering electric
motorcycle financing services to the local customers. The initiative
▪ Continued diversification of business operations and a balanced is still in its early stages of development, yet the first electric
revenue stream from all three core business lines: motorcycle customers have already been financed.
- Flexible lease and subscription-based products contributed
▪ Impairment coverage ratio for the vehicle finance segment at the
EUR 50.8 mln to the 12M 2022 revenue—up by 91.1%
end of the year stood at 95.0%, representing a 2p.p. improvement
compared to 12M 2021, but down by 4.8% QOQ. The key
YOY. Meanwhile, the impairment coverage ratio for the consumer
revenue driver was the productive lending segment in East
finance segment in the same period declined by 12p.p., driven by
Africa, which performed exceptionally well during the first
portfolio development in North Macedonia and portfolio run-down
three quarters of the year; during Q4, however, the Group
in Ukraine, and at the end of the year equaled 131.9%.
tightened its underwriting policy, and some local jurisdictions
saw indications of an economic slowdown, causing a slight ▪ During Q4, Eleving Group continued its course towards a more
slowdown in the Q4 revenue. sustainable future and achieved several milestones aligned with its
ESG strategic objectives. The most prominent highlight in the ESG
- Traditional lease and leaseback products contributed EUR
landscape was the launch of a financial literacy platform, where
68.0 mln to the 12M 2022 revenue—up by 32.5% compared
anyone can assess the health of their existing loan commitments,
to 12M 2021 and up by 13.2% QOQ. The respective revenue
evaluate whether new financial commitments would be feasible,
growth was mainly attributable to the successful portfolio
and find advice on budgeting, debt management, making savings,
growth in Romania. However, nearly all other Group’s markets
financial hygiene, and the like. Currently, the platform is available
also experienced positive incremental growth.
in Latvia, but the Group is committed to extending the platform to
- Revenue from the consumer loan segment contributed all the other of the Group’s markets by the end of Q2 2023.
EUR 57.1 mln to the 12M 2022 revenue—down by 12.1%
compared to 12M 2021, but up by 4.0% QOQ. The negative
trend observed in the annual consumer loan revenue mainly
stemmed from the run-down of the Ukrainian portfolio.

Financial Highlights and Progress

▪ Solid profitability as evidenced by:

- Adjusted EBITDA of EUR 71.8 mln

(12M 2021: EUR 55.6 mln);

- Adjusted Net Profit before FX of EUR 27.3 mln

(12M 2021: EUR 18.5 mln);

- Adjusted Net Profit after FX of EUR 21.1 mln

(12M 2021: EUR 19.6 mln).

▪ Record-high net portfolio of EUR 288.9 mln; Eleving Vehicle

Finance and Eleving Consumer Finance accounted for
EUR 221.8 mln and EUR 67.1 mln, respectively.

▪ During Q4, the Group continued its local bond issuance program
in Kenya, and by year-end had nearly doubled the amount raised
in Q3, with the total funds raised reaching EUR 7.3 mln. Moving
forward, the Group will seek to leverage similar opportunities, as
they both bolster the Group’s capital structure and mitigate the
FX gap on the Group’s balance sheet, originating from the asset
and liability currency mismatch.

▪ The Group has successfully managed to decrease its operational

cost base, as evidenced by the 1.7 p.p. drop in the
cost-to-income ratio of 12M 2022 compared to 12M 2021.
Moreover, facing an inflationary environment, the Group will
seek to become even more cost-efficient in 2023.

▪ The financial year of 2022 was closed with a healthy financial

position, supported by the capitalization ratio of 26.2%
(31 December 2021: 20.7%), ICR ratio of 2.5 (31 December
2021: 2.5), and net leverage of 3.4 (31 December 2021: 3.8),
providing an adequate and stable headroom for Eurobond
covenants.
Eleving Group 5

Comments from Eleving

Group CEO and CFO
We started 2022 with a dosed optimism. The In November, we decided to simplify and optimize
turbulence caused by the Covid-19 pandemic had our hub structure and merge our Eastern Europe
subsided, and it appeared that we might plan for hub with our Caucasus hub, creating a new and
moderate and predictable growth of the global larger—Eleving Europe hub. We are confident this
economy. However, the changing geopolitical will result in smoother management processes and
situation in Eastern Europe and the war in reduced administrative costs throughout 2023.
Ukraine shifted the market and, consequently, the
macroeconomic outlook. Despite these external Also, in the ESG-related sphere, the Group
factors, we experienced a strong quarter and achieved some significant milestones. In the past
twelve-month period, with the best financial and quarter, we launched the financial literacy platform
operational results in the Group’s history. for the Latvian market to educate consumers about
personal budget planning and making informed
Modestas Sudnius The near-perfect results were driven by the financial decisions. We aim to launch it in other
CEO of Eleving Group adjusted strategy approved right after Q1. The markets in Q1 and Q2 of 2023. Additionally, we are
main emphasis was put on portfolio quality also proud of launching e-boda financing in Kenya.
and efficiency, as well as reducing the portfolio For the Group, this project contributes to fulfilling
exposure in the affected markets while maintaining our strategic goals, where we have committed to
steady growth as a Group. This translated into increasing the number of emission-free vehicles
a focus placed on managerial efficiency, cost in our portfolio and reducing the carbon footprint
optimization, careful capital management, and a arising from it. For our clients, this project will
slightly more conservative business approach. save money on fuel and maintenance costs.
For society, in the long run, it will improve the
In Q4, we saw that consumption in some markets ecological aspects of the cities, such as air quality
decreased because consumers postponed larger and reduced noise levels.
purchases, including buying new vehicles.
Admittedly, these fluctuations were already
predictable in Q2, so our timely decisions—
focusing on key strategic partnerships and roll-out
a fully automated “dealers’ module”—helped
us maintain stable issuance volumes without
sacrificing portfolio quality at a time when the
overall market was shrinking.

Last quarter ended the best year for Eleving Group As seen by the figures mentioned previously, we
in terms of EBITDA, revenue, net profit, and other have entered the phase that is daunting for many
fundamental business indicators. In 2022, the companies in the financial industry—the elevated
Group managed to increase the adjusted EBITDA interest rates period—on a solid footing due to a
by 29.2% compared to 2021, while the adjusted conservative and measured approach toward the
revenue reached EUR 183.8 mln, an increase of quality of our balance sheet.
19.5% compared to a year ago. Also, the adjusted
net profit before FX increased by 47.6% in 2022, In the coming quarters, we plan to continue
while the net portfolio ascended to EUR 288.9 mln. focusing on controlled growth, improving our
existing products and ensuring the quality of our
All things considered, we saw a slightly slower portfolio. Additionally, we will be closely monitoring
portfolio growth QOQ, but this resulted from our the developments in the financial markets,
choice to mitigate the potential risks in times especially since our local three-year bond in Latvia Māris Kreics
of uncertainty. We managed to diversify our is maturing during the next year. CFO of Eleving Group
portfolio across the markets and have absorbed
the negative effect of war by decreasing exposure
in the affected markets accordingly. Also, the
diversification of the Group’s funding structure
is still strong, with more opportunities for us to
tap into the private debt at a local market level,
especially in the African region.

A Way
Way Up
 Eleving Group 6

Outlook - Products & Strategy

To become an ultimate mobility platform

Mobility Inclusion

Financing Flexible lease and subscription Consumer lending

Boda loans
Products & services

Vehicle leasing Premium vehicle Rent-to-buy & Motorcycle Electric car Consumer
for pre-owned leasing for subscription taxi loans sharing loan products
cars pre-owned cars services for in emerging product available online
ultimate markets1 and through
flexibility branch networks
for next 12 months

Shift portfolio to
Product strategy

longer maturities
Maintain Maintain Maintain Maintain and higher ticket
Scale the new
organic growth organic growth organic growth organic growth loans to serve
product in
in the existing in the existing in the existing in the existing wider customer
Latvia
markets markets markets markets needs, portfolio
run down in
Ukraine

Processes Capital management Social impact

Further automation of loan issuances Continuous improvement in financial Implementation of the financial literacy
and underwriting processes for seamless covenants — Interest coverage ratio (ICR), platform in Estonia, Kenya, Lithuania,
customer experience and efficient resource Net leverage ratio and Capitalization Romania, Armenia, and Georgia by the end
allocation ratio and target rating upgrade of Q1 2023 

Further development of sales channels: Exploring routes for attracting Implementation of resource consumption
outside equity monitoring in all Group offices, with the
▪ Launch of updated car portal across all aim of reducing electricity, water, and heat
Vehicle Finance markets consumption and waste generation
Continue to decrease exposure
▪ Upgrade partners (POS/Dealerships) in Ukraine and Belarus
sales tools Participate in a carbon offsetting project
to extend the existing Carbon Neutral
Company’s certificate for 2023

1
Kenya and Uganda.
Eleving Group 7

About Eleving Group

Our approach Sustained growth

Our approach to business is to identify underserved markets The consistent pursuit of growth has turned us into a strong,
and disrupt them with innovative and sustainable financial global player of the financial services industry, earning us a spot
solutions both in the vehicle and consumer financing among the Top 1 000 fastest growing companies in Europe, with
segments. more than 2 650 employees and 330 000 active loyal customers.

Vehicle
Financing
Underserved
markets

Consumer
Financing

Presence
Eleving Group is an international fast-moving financial
technology company offering services across the globe.
The Group operates in 14 countries across 3 continents.

Conference call
On 16 February Contact
A conference call in English with the Group’s management Māris Kreics
team to discuss these results is scheduled for 16 February Chief Financial Officer (CFO)
2022, at 15:00 CET.
maris.kreics@eleving.com

Conference call access information

Eleving Group – Unaudited results for the twelve months ended 31 December 2022 8
Eleving Group – Unaudited results for the nine months ended 30 September 2022 8

Financial
Financial review
review
Condensed consolidated income statement
The table below sets out the condensed consolidated statement of profit and loss for the twelve months
period ended 31 December 2021 and 31 December 2022.
in EUR million 12M 2021 12M 2022 Change (%)

Interest and similar income 136.5 170.5 24.9%

Interest expense and similar expenses (28.2) (32.0) 13.5%

Net interest income 108.3 138.5 27.9%

Income from used vehicle rent 6.4 5.4 (15.6%)

Impairment expense (38.5) (42.4) 10.1%

Operating expense and income (61.1) (67.9) 11.1%

Net foreign exchange result 1.1 (6.2) (663.6%)

Profit before tax 16.2 27.4 69.1%

Corporate income tax (6.5) (7.1) 9.2%

Net profit for the period without FX and discontinued

8.6 26.5 208.1%
operations

Net profit for the period 9.7 20.3 109.3%

Interest, similar income and income from used vehicle rent

in EUR million 12M 2021 12M 2022 Change (%)

Flexible and subscription based products 26.6 50.8 91.1%

Interest and similar income 20.2 45.2 123.7%

Rental income 6.4 5.4 (15.3%)

Other - 0.2 nm

Traditional lease and leaseback products 51.3 68.0 32.5%

Interest and similar income 51.3 68.0 32.5%

Consumer lending products 65.0 57.1 (12.1%)

Interest and similar income 65.0 57.1 (12.1%)

Average net loan and used vehicle rent portfolio 223.5 267.1 19.5%

Average income yield on net loan and used vehicle

64.0% 65.9% 1.9 p.p.
rent portfolio

Interest, similar income and income from used vehicle rent for the period increased by 23.1% to EUR 175.9
million (12M 2021: EUR 142.9 million) reflecting the growth in the average net loan and used vehicle rent
portfolio by 19.5% to EUR 267.1 million (12M 2021: EUR 223.5 million) and continuous focus on highest-
yielding markets and products.
Eleving Group – Unaudited results for the nine months ended 30 September 2022 9
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 9

Interest expense and similar expense

Interest expense and similar expense increased by 13.5% to EUR 32.0 million (12M 2021: EUR 28.2
million) driven by the increase in the total borrowings to EUR 261.5 million (31 December 2021: EUR 241.6
million).

Income from used vehicle rent

Income from used vehicle rent decreased by 15.6% to EUR 5.4 million (12M 2021: EUR 6.4 million).
Meanwhile, the total used vehicle rental fleet in Latvia remained stable and stood at EUR 10.2 million (31
December 2021: EUR 10.0 million).

Impairment expense for vehicle finance portfolio

Net impairment losses on loans and receivables increased by 101.0% to EUR 20.7 million (12M 2021: EUR
10.3 million). The NPL ratio (Net NPL / Total net portfolio) amounted to 5.0% (conservative 35+ days past
due) of the net portfolio (31 December 2021: 4.5%) with provision coverage ratio of 95.0% (31 December
2021: 93.0%).

Impairment expense for consumer lending portfolio

Net impairment losses on loans and receivables decreased by 23.0% to EUR 21.7 million (12M 2021: EUR
28.2 million). The NPL ratio (Net NPL / Total net portfolio) amounted to 5.5% (90+ days past due) of the
net portfolio (31 December 2021: 3.8%) with provision coverage ratio of 131.9% (31 December 2021:
143.9%).

Operating expense
The table below sets out a breakdown of the Group’s total operating expenses.
in EUR million 12M 2021 12M 2022 Change (%)

Employees’ salaries 26.6 33.2 24.8%

Marketing expenses 8.2 8.0 (2.4%)

Office and branch maintenance expenses 2.0 2.6 30.0%

Professional services 2.6 2.7 3.8%

Amortization and depreciation 7.4 8.7 17.6%

Bonds refinancing expense 5.7 - (100.0%)

Other operating (income)/expenses 8.6 12.4 44.2%

Total operating expense 61.1 67.6 10.6%

Operating expenses increased by 10.6% to EUR 67.6 million (12M 2021: EUR 61.1 million), mainly driven
by net loan portfolio growth.

Salaries increased by 24.8% to EUR 33.2 million (12M 2021: EUR 26.6 million), comprising 49.1% of the
total operating expenses (12M 2021: 43.5%). Meanwhile, marketing expenses, with effective costs of EUR
17 per loan issued, accounted for 11.8% of total the operating expenses (12M 2021: 13.4%).
Eleving Group – Unaudited results for the nine months ended 30 September 2022 10
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 10

Profit before tax

The consolidated profit before taxes amounted to EUR 27.4 million (12M 2021: EUR 16.2 million).

Corporate income tax

The following table sets out a breakdown of the Group’s corporate income tax.
in EUR million 12M 2021 12M 2022 Change (%)

Corporate income tax (6.9) (9.7) 40.6%

Deferred tax 0.4 2.6 550.0%

Total corporate income tax (6.5) (7.1) 9.2%

Profit for the period

The consolidated net profit for the period amounted to EUR 20.3 million (12M 2021: EUR 9.7 million).

Alternative performance measures (non-IFRS)

in EUR million 12M 2021 12M 2022 Change (%)

Profit for the period 9.7 20.3 109.3%

Provisions for taxes 6.5 7.1 9.2%

Interest expense 28.2 32.0 13.5%

Depreciation and amortization 7.4 8.7 17.6%

Currency exchange loss/(gain) (1.1) 6.2 (663.6%)

EBITDA 50.7 74.3 46.5%

Amortization of acquisitions’ fair value gain 3.2 - nm

Loss from subsidiary sale 1.0 0.8 (19.4%)

Bonds refinancing expense 5.7 - nm

Non-controlling interests (5.0) (3.3) (34.9%)

Adjusted EBITDA 55.6 71.8 29.2%

Eleving Group – Unaudited results for the nine months ended 30 September 2022 11
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 11

Condensed consolidated balance sheet

The table below sets out the Group’s condensed consolidated statement of its financial position.
in EUR million 31 Dec. 2021 31 Dec. 2022

Intangible assets 14.4 15.7

Tangible assets 12.2 12.6

Loans and lease receivables and rental fleet 245.2 288.9

Deferred tax asset 2.8 5.6

Inventories 3.8 2.5

Non-current assets held for sale 2.4 5.2

Other receivables 12.8 16.8

Assets of subsidiary held for sale 12.9 0.4

Receivables as a result of sale of subsidiaries to related parties 2.3 -

Receivables as a result of sale of subsidiaries to 3rd parties 1.1 -

Cash and cash equivalents 10.1 13.8

Total assets 320.0 361.5

in EUR million 31 Dec. 2021 31 Dec. 2022

Share capital and reserves 1.8 2.1

Foreign currency translation reserve 0.2 5.1

Retained earnings 22.3 40.7

Non-controlling interests 7.1 6.1

Subordinated debt 17.3 19.0

Total equity 48.7 73.0

Borrowings 241.6 261.5

Other liabilities 29.7 27.0

Total liabilities 271.3 288.5

Total equity and liabilities 320.0 361.5

Assets
The total assets increased by 13.0% to EUR 361.5 million (31 December 2021: EUR 320.0 million),
reflecting the growth of net loan and used vehicle rent portfolio.

Tangible assets
Tangible assets increased by 3.3% to EUR 12.6 million (31 December 2021: EUR 12.2 million).
Eleving Group – Unaudited results for the nine months ended 30 September 2022 12
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 12

Net loan and used vehicle rent portfolio

The net loan and used vehicle rent portfolio increased by 17.8% to EUR 288.9 million (31 December 2021:
EUR 245.2 million).

Net loan and used vehicle rent portfolio split by market type
in EUR million 31 Dec. 2021 Total share (%) 31 Dec. 2022 Total share (%)

Developed countries* 123.2 50.2% 140.0 48.5%

Developing countries** 59.2 24.1% 81.8 28.3%

Consumer loan markets 61.4 25.0% 67.1 23.2%

Countries on hold*** 1.4 0.6% - -

Total net loan and used vehicle

245.2 100.0% 288.9 100.0%
rent portfolio

* Developed countries are Latvia (including used vehicle rent portfolio), Lithuania, Estonia, Belarus, Romania, Moldova, Georgia and Armenia

** Developing countries are Uzbekistan, Kenya and Uganda

*** Countries on hold are Bosnia and Herzegovina, and Poland (both countries classified as assets of subsidiary held for sale or under liquidiation)

Net loan and used vehicle rent portfolio split by product type
in EUR million 31 Dec. 2021 Total share (%) 31 Dec. 2022 Total share (%)

Flexible and subscription based products 53.6 21.9% 72.7 25.2%

Traditional lease and leaseback products 130.2 53.1% 149.1 51.6%

Consumer lending products 61.4 25.0% 67.1 23.2%

Total net loan and used vehicle

245.2 100.0% 288.9 100.0%
rent portfolio

With the legacy markets rationalized, the developing markets such as Kenya and Uganda continue to
establish themselves as the key drivers of the future portfolio growth.

The Group also continues to capitalize on the latest consumer trends and continue to roll out its flexible
lease and subscription based products that at the end of the period already comprised 25.2% of the total
net loan and used vehicle rent portfolio.

Meanwhile, the consumer lending portfolio stood at 23.2% from the total net loan and used vehicle rent
portfolio, which is in line with Group’s long term strategy regarding its net loan portfolio composition.
Eleving Group – Unaudited results for the nine months ended 30 September 2022 13
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 13

Net loan and used vehicle rent portfolio (excluding consumer lending)

The following table sets out the classification of the Group’s net loan and used vehicle rent portfolio
(excluding consumer lending) in terms of overdue buckets as well as the total impairment coverage ratio.

in EUR million 31 Dec. 2021 Total share (%) 31 Dec. 2022 Total share (%)

STAGE 1* 150.5 86.9% 175.4 82.8%

STAGE 2** 14.9 8.6% 25.9 12.2%

STAGE 3*** 7.7 4.4% 10.5 5.0%

Total net loan portfolio 173.1 100.0% 211.8 100.0%

Used vehicle rent 10.7 5.8% 10.0 4.5%

Total net loan and used vehicle rent

183.8 221.8
portfolio

Net NPL ratio**** 4.5% 5.0%

Impairment coverage ratio***** 93.0% 95.0%

* Allowances are recognized based on 12m ECLs by first recognition of loans/leases. Leases current or with up to 30 DPD are considered as Stage 1 for Latvia,
Lithuania, Estonia, Armenia and Georgia. For other countries, 25 DPD is used. Loans up to 30 DPD are considered Stage 1.

** Allowances are recorded for LTECLs by loans/leases showing a significant increase in credit risk since origination. Leases with 31-60 DPD (or 26-34 DPD for
countries other than Latvia, Lithuania, Estonia, Armenia and Georgia) are considered to be Stage 2 loans. Loans with 30 to 60 DPD are considered Stage 2.

*** Leases and loans are considered credit-impaired and at default. Allowances are recorded for the LTECLs. Finance lease agreements are considered defaulted
and therefore Stage 3 with 60 DPD on contractual payments or terminated lease agreement. For countries other than Latvia, Lithuania, Estonia, Armenia and
Georgia a 35 DPD backstop is applied. Loans with 60 DPD are considered defaulted and therefore Stage 3.

A healing period of 3 months for mature countries and 2 months for immature countries is applied before an exposure previously classified as Stage 3 can be
transferred to Stage 1. In case of mature countries, it is determined to have two healing periods – one month period to Stage 2 and further two month period to
Stage 1. This is considered appropriate in context of a prudent default definition of 60 DPD. In case of immature countries, it is determined to have one healing
period –two month period where the exposure is in Stage 2 and then transfers to Stage 1. This is considered appropriate in context of an even more
conservative default definition of 35 DPD.

**** Net NPL (35+ days overdue) / Total net portfolio

***** Total impairment / Gross NPL (35+ days overdue)

NPLs in the total net loan and used vehicle rent portfolio increased to 5.0% (31 December 2021: 4.5%).
Eleving Group – Unaudited results for the nine months ended 30 September 2022 14
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 14

Net consumer lending portfolio

The following table sets out the classification of the Group’s net consumer lending portfolio in terms of
overdue buckets as well as the total impairment coverage ratio.
in EUR million 31 Dec. 2021 Total share (%) 31 Dec. 2022 Total share (%)

STAGE 1* 57.6 93.8% 61.6 91.8%

STAGE 2** 1.4 2.3% 1.8 2.7%

STAGE 3*** 2.4 3.9% 3.7 5.5%

Total net loan portfolio 61.4 100.0% 67.1 100.0%

Net NPL ratio**** 3.8% 5.5%

Impairment coverage ratio***** 143.9% 131.9%

* Allowances are recognized based on 12m ECLs by first recognition of loans. Loans current or with up to 30 DPD are considered as Stage 1.

** Allowances are recorded for LTECLs by loans showing a significant increase in credit risk since origination. Loans with 31-90 DPD are considered to be Stage
2 loans.

*** Loans are considered credit-impaired and at default. Allowances are recorded for the LTECLs. Loans with 90 DPD are considered defaulted and therefore
Stage 3.

**** Net NPL (90+ days overdue) / Total net portfolio

***** Total impairment / Gross NPL (90+ days overdue)

NPLs in the total net consumer loan portfolio increased to 5.5% (31 December 2021: 3.8%).

Equity
The total equity of the Group increased by 49.9% to EUR 73.0 million (31 December 2021: EUR 48.7
million). The capitalization ratio at the end of the period stood at 26.2% (31 December 2021: 20.7%),
providing adequate and stable headroom for Eurobond covenants.

Liabilities
The total liabilities increased by 6.3% and equalled EUR 288.5 million (31 December 2021: EUR 271.3
million).

Loans and borrowings

The following table sets out loans and borrowings by type.
in EUR million 31 Dec. 2021 31 Dec. 2022

Loans from banks 7.6 5.6

Kenyan Notes - 7.3

Latvian Bonds 29.5 28.8

Eurobonds (excl. accrued interest) 142.2 149.7

Bonds acquisition costs and accrued interest (2.4) (1.2)

Financing received from P2P investors 62.3 67.6

Loans from other parties 2.4 3.7

Total loans and borrowings 241.6 261.5

Eleving Group – Unaudited results for the nine months ended 30 September 2022 15
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 15

Latvian bonds
On 1 March 2021, through a public offering JSC "mogo" successfully issued a corporate bond
(LV0000802452) in the amount of EUR 30 million, which from 31 March 2021 is listed on the regulated
market – the Baltic Bond List of "Nasdaq Riga" stock exchange. The notes, with a minimum subscription
amount of EUR 1 000 were issued at par, having a maturity of 3 years and carrying a fixed coupon of 11%
per annum, paid monthly in arrears. The bonds were offered to existing JSC "mogo" bondholders and other
retail and institutional investors from the Baltic region.

Eurobonds
On 18 October 2021, Eleving Group successfully issued a 5-year corporate bond (XS2393240887), listed on
the Open Market of the Frankfurt Stock Exchange, at par with an annual interest rate of 9.5% and total
amount of EUR 150 million. The bond will mature in October 2026. The previous corporate bond
(XS1831877755) with an annual interest rate of 9.5% was fully repaid on 20 October 2021 following the
issuance of the new corporate bond (XS2393240887).

Subordinated bonds
On 7 March 2022, Eleving Group bonds (XS2427362491) were admitted to trading on the Nasdaq Baltic
First North Market. The size of the Eleving Group bond issue is EUR 25 million. The bonds have a nominal
value of EUR 1 000 each and a floating annual coupon rate of 12% + 6 month EURIBOR, with interest paid
monthly. Subordinated bonds mature on 29 December 2031.

Off-balance sheet arrangements

The Group does not have significant off-balance sheet arrangements.

Condensed consolidated statement of cash flow

in EUR million 31 Dec. 2021 31 Dec. 2022

Profit before tax 14.4 25.8

Net cash flows to/from operating activities (6.0) (4.2)

Net cash flows to investing activities (2.3) (4.4)

Net cash flows from/to financing activities 13.1 12.3

Change in cash 4.8 3.7

Cash at the beginning of the year 9.3 10.1

Cash at the end of the year 14.1 13.8

Net cash outflow from operating activities amounted to EUR 4.2 million (12M 2021: cash outflow EUR 6.0
million). The Group's net cash ouflow from investing activities totalled EUR 4.4 million (12M 2021: cash
outflow EUR 2.3 million). Finally, the Group's net cash inflow from financing activities amounted to EUR
12.3 million (12M 2021: cash inflow EUR 13.1 million).
Eleving Group – Unaudited results for the nine months ended 30 September 2022 16
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 16

Eurobond covenant ratios

Capitalization 31 Dec. 2021 31 Dec. 2022 Change (p.p.)

Equity/Net loan portfolio 20.7% 26.2% 5.5

Profitability 31 Dec. 2021 31 Dec. 2022 Change

Interest coverage ratio (ICR) 2.5 2.5 -

Leverage 31 Dec. 2021 31 Dec. 2022 Change

Net leverage 3.8 3.4 (0.4)

in EUR million Mintos loans Net loan and used vehicle rent portfolio

Total Total
31 Dec. 31 Dec. Change 31 Dec. 31 Dec.
Country share share
2021 2022 (%) 2021 2022
(%) (%)
Armenia* 1.0 1.1 10.0% 9.9 5.4% 12.6 5.7%

Belarus* 10.0 1.4 (86.0%) 19.3 10.5% 14.6 6.6%

Georgia* 4.2 1.9 (54.8%) 14.1 7.7% 16.0 7.2%

Estonia - 4.8 100.0% - - 11.3 5.1%

Kenya** 1.4 4.8 242.9% 39.2 21.3% 51.4 23.2%

Latvia* 5.8 1.8 (69.0%) 16.6 9.0% 13.3 6.0%

Lithuania* 2.3 2.2 (4.3%) 25.3 13.8% 27.2 12.3%

Moldova* 5.5 6.3 14.5% 14.1 7.7% 15.9 7.2%

Romania* 10.6 14.9 40.6% 23.9 13.0% 29.1 13.1%

Uganda** - - - 13.4 7.3% 21.7 9.8%

Uzbekistan** - - - 6.6 3.6% 8.7 3.9%

Countries on hold*** - - - 1.4 0.8% - -

Total vehicle lease and rent 40.8 39.2 (3.9%) 183.8 100% 221.8 100%

Consumer loan markets 21.5 28.4 32.1% 61.4 33.3% 67.1 23.2%

Total 62.3 67.6 245.2 288.9

* Developed countries are Latvia (including used vehicle rent portfolio), Lithuania, Georgia, Romania, Moldova, Belarus, Estonia and Armenia

** Developing countries are Uzbekistan, Kenya and Uganda

*** Countries on hold are Bosnia and Herzegovina and Poland (both countries classified as assets of subsidiary held for sale or under liquidiation)
Eleving Group – Unaudited results for the nine months ended 30 September 2022 17
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 17

Recent
Recent developments
developments
No Regulatory Changes
No material regulatory changes have taken place since 31 December 2022.

Events after the balance sheet date

As of the last day of the reporting period until the date of publishing these unaudited results for the twelve
months ended 31 December 2022 there have been no events requiring adjustment of unaudited results.

Directors’ Statement
The consolidated twelve month report of the Company is, to the best of the Directors’ knowledge, prepared
in accordance with the applicable set of accounting standards and gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the undertakings included in the
consolidation taken as a whole.
The twelve month management report of the Company includes a fair review of the development and
performance of the business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal risks and uncertainties that they
face.
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 18

Eleving Group – Unaudited results for the nine months ended 30 September 2022 18

Consolidated
Consolidated statements of:
statements of:
Financial Position – Assets
Financial Position – Equity and Liabilities
Income Statement and Statement of Cash Flow

Consolidated Statement of Financial Position – Assets

in EUR million 31 Dec. 2021 31 Dec. 2022

Assets

Goodwill 4.2 4.7

Internally generated intangible assets 7.5 8.6

Other intangible assets 2.7 2.4

Loans and lease receivables and rental fleet 245.2 288.9

Right-of-use assets 9.1 9.8

Property, plant and equipment 2.5 2.2

Leasehold improvements 0.6 0.6

Receivables as a result of sale of subsidiaries to related parties 2.3 -

Receivables as a result of sale of subsidiaries to third parties 1.1 -

Loans to related parties 4.1 3.3

Other financial assets 1.8 1.2

Deferred tax asset 2.8 5.6

Inventories 3.8 2.5

Prepaid expense 1.7 2.1

Trade receivables 0.7 0.2

Other receivables 4.5 10.0

Assets of subsidiary held for sale 12.9 0.4

Assets held for sale 2.4 5.2

Cash and cash equivalents 10.1 13.8

Total Assets 320.0 361.5

Eleving Group – Unaudited results for the nine months ended 30 September 2022 19
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 19

Consolidated Statement of Financial Position – Equity and liabilities

in EUR million 31 Dec. 2021 31 Dec. 2022

Equity

Share capital 1.0 1.0

Retained earnings 22.3 40.7

Foreign currency translation reserve 0.2 5.1

Reserve 0.8 1.1

Total equity attributable to owners of the Company 24.3 47.9

Non-controlling interests 7.1 6.1

Subordinated debt 17.3 19.0

Total equity 48.7 73.0

Liabilities

Borrowings 241.6 261.5

Provisions 0.1 0.2

Prepayments and other payments received from customers 0.9 0.5

Trade payables 2.7 1.7

Corporate income tax payable 3.7 4.4

Taxes payable 1.8 2.5

Other liabilities 10.1 12.6

Liabilities of subsidiary held for sale 6.1 0.1

Accrued liabilities 4.2 5.0

Other financial liabilities 0.1 -

Total liabilities 271.3 288.5

Total equity and liabilities 320.0 361.5

Eleving Group – Unaudited results for the nine months ended 30 September 2022 20
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 20

Consolidated Income Statement

in EUR million 12M 2021 12M 2022

Interest revenue calculated using the effective interest method 136.5 170.5

Interest expense calculated using the effective interest method (28.2) (32.0)

Net interest income 108.3 138.5

Fee and commission income 7.3 7.9

Revenue from rent 6.4 5.4

Total net revenue 122.0 151.8

Impairment expense (38.5) (42.4)

Expenses related to peer-to-peer platform services (1.0) (1.0)

Selling expense (8.2) (8.0)

Administrative expense (51.3) (61.6)

Bonds refinancing expense (5.7) -

Other operating (expense) / income (2.2) (5.2)

Net foreign exchange result 1.1 (6.2)

Profit before tax 16.2 27.4

Corporate income tax (6.9) (9.7)

Deferred corporate income tax 0.4 2.6

Net profit for the period 9.7 20.3

Discontinued operations (2.6) (1.7)

Translation of financial information of foreign operations to presentation currency 2.5 5.0

Total comprehensive income for the period without FX 6.0 24.8

Total comprehensive income for the period 9.6 23.6

Eleving Group – Unaudited results for the nine months ended 30 September 2022 21
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 21

Consolidated Statement of Cash Flow

in EUR million 31 Dec. 2021 31 Dec. 2022

Cash flows to/from operating activities

Profit before tax 14.4 25.8

Adjustments for:

Amortisation and depreciation 5.3 8.7

Interest expense 21.4 32.0

Interest income (94.4) (170.5)

Loss on disposal of property, plant and equipment 2.5 2.8

Impairment expense 28.6 42.4

Loss/(gain) from fluctuations of currency exchange rates 0.8 1.2

Operating profit before working capital changes (21.4) (57.6)

(Increase)/decrease in inventories (2.3) 1.3

(Increase)/decrease in receivables (55.0) (72.3)

Increase/(decrease) in trade payable, taxes payable and other liabilities (1.6) (7.1)

Cash generated to/from operating activities (80.3) (135.7)

Interest received 96.7 170.5

Interest paid (19.8) (29.1)

Corporate income tax paid (2.6) (9.9)

Net cash flows to/from operating activities (6.0) (4.2)

Cash flows to/from investing activities

Purchase of property, plant and equipment and intangible assets (5.3) (5.1)

Purchase of rental fleet (3.0) (5.0)

Loan repayments received 6.5 5.7

Loans issued and bank deposits (0.5) -

Net cash flows to/from investing activities (2.3) (4.4)

Cash flows to/from financing activities

Proceeds from borrowings 211.6 190.5

Repayments for borrowings (198.2) (177.6)

Dividends paid (0.3) (0.6)

Net cash flows to/from financing activities 13.1 12.3

Change in cash 4.8 3.7

Cash at the beginning of the period 9.3 10.1

Cash at the end of the period 14.1 13.8

Eleving Group – Unaudited results for the nine months ended 30 September 2022 22
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 22

Latvian
Latvian operations
operations only
only
Condensed Financial Information of JSC "mogo" (consolidated)

Statement of Profit or Loss and Other Comprehensive Income (JSC "mogo" (consolidated))
in EUR million 12M 2021 12M 2022

Interest revenue calculated using the effective interest method 7.7 7.5

Interest expense calculated using the effective interest method (4.5) (4.3)

Net interest income 3.2 3.2

Fee and commission income 0.4 0.2

Revenue from rent 6.5 4.7

Total net revenue 10.1 8.1

Impairment expense 0.3 0.4

Expenses related to peer-to-peer platforms services (0.1) (0.1)

Selling expense (0.2) (0.2)

Administrative expense (5.9) (5.1)

Other operating (expense) / income 1.4 0.7

Profit before tax 5.6 3.8

Corporate income tax - -

Deferred corporate income tax - -

Net profit for the period 5.6 3.8

Eleving Group – Unaudited results for the nine months ended 30 September 2022 23
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 23

Consolidated Statement of Financial Position – Assets, Equity and liabilities

(AS "mogo" (consolidated))

in EUR million 31 Dec. 2021 31 Dec. 2022

Assets

Loans and lease receivables and rental fleet 16.6 12.6

Loans to Eleving Group S.A. 35.6 39.9

Property, plant and equipment 0.8 0.8

Receivables from group companies 0.9 0.6

Other receivables 0.7 0.7

Prepaid expense 0.1 0.1

Cash and cash equivalents 0.4 0.7

Total assets 55.1 55.4

in EUR million 31 Dec. 2021 31 Dec. 2022

Equity

Share capital 0.4 0.4

Other reserves (1.8) (1.8)

Retained earnings

Brought forward 10.2 15.8

For the period 5.6 3.8

Total equity 14.4 18.2

Liabilities

Borrowings 37.8 34.5

Other provisions 1.8 1.3

Prepayments received from customers 0.1 0.2

Trade payables 0.1 0.4

Payables to related companies 0.4 0.4

Taxes payable 0.1 -

Accrued liabilities 0.4 0.4

Total liabilities 40.7 37.2

Total equity and liabilities 55.1 55.4

Eleving Group – Unaudited results for the twelve months ended 31 December 2022 24

Glossary and important information

Definitions and alternative performance measures
▪ Average income yield on net loan and used car rent ▪ Flexible lease and subscription-based products —
portfolio — the sum of annualized interest revenue calculated motorcycle-taxi financing in Kenya and Uganda, used vehicle rent
using the effective interest method and revenue from rent/average in Latvia and Lithuania, new vehicle subscription in Latvia
net loan and used car rent portfolio
▪ GROSS NON-PERFORMING LOANS (NPLs) — 35+ days
▪ Average net loan and used car rent portfolio — the sum of overdue loan and used car rent portfolio receivables or 90+ days
net loan and used car rent portfolio as of the start and end of each overdue consumer loan portfolio receivables
period divided by two
▪ Impairment coverage ratio — total impairment/gross non-
▪ Capitalization ratio — equity (incl. subordinated debt)/net loan performing loans (NPLs)
portfolio (excl. used car rent portfolio)
▪ Interest coverage ratio — last twelve-month Adjusted EBITDA/
▪ Cost/income ratio — the sum of selling expense and interest expense calculated using the effective interest method
administrative expense/sum of interest revenue calculated using less Eurobonds acquisitions costs and subordinated debt interest
the effective interest method, fee and commission income and expense
revenue from rent
▪ Net NPL ratio — non-performing loans (NPLs)/total net portfolio
▪ DPD — days past due
▪ Non-performing loans (NPLs) — 35+ days overdue loan and
▪ EBITDA — net profit for the period before corporate income tax used car rent portfolio receivables or 90+ days overdue consumer
and deferred corporate income tax, interest expense calculated loan portfolio receivables less impairment provisions
using the effective interest method, amortization and depreciation,
and net foreign exchange result ▪ Net profit before FX effect — net profit for the period before net
foreign exchange result
▪ ESG — Environmental, Social, and Governance strategy

Market definitions
▪ Consumer finance markets — Albania, North Macedonia, ▪ Emerging markets — Kenya, Uganda, Uzbekistan
Moldova, Ukraine
▪ On-hold markets — Poland, Bosnia and Herzegovina
▪ Developed markets — Latvia, Lithuania, Estonia, Georgia,
Armenia, Romania, Moldova, Belarus

Important information
The information contained herein is not for release, publication This announcement does not constitute an offer of bonds to the
or distribution, in whole or in part, directly or indirectly, in or into public in the United Kingdom. No prospectus has been or will be
the United States, Australia, Canada, Hong Kong, Japan, New approved in the United Kingdom in respect of the bonds. Accordingly,
Zealand, South Africa or any other countries or otherwise in such this announcement is not being distributed to, and must not
circumstances in which the release, publication or distribution would be passed on to, the general public in the United Kingdom. The
be unlawful. The information contained herein does not constitute communication of this announcement as a financial promotion may
an offer to sell or the solicitation of an offer to buy, nor shall there only be distributed to and is only directed at (i) persons who are
be any sale of, the bonds in any jurisdiction in which such offer, outside the United Kingdom or (ii) investment professionals falling
solicitation or sale would be unlawful prior to registration, exemption within Article 19(5) of the Financial Services and Markets Act 2000
from registration or qualification under the securities laws of any (Financial Promotion) Order 2005 (the “Order”) or (iii) high net
such jurisdiction. Persons into whose possession this announcement worth companies, and other persons to whom it may lawfully be
may come are required to inform themselves of and observe all such communicated, falling within Article 49(2)(a) to (d) of the Order (all
restrictions. such persons in (i), (ii) and (iii) above together being referred to as
“Relevant Persons”). Any invitation, offer or agreement to subscribe,
This announcement does not constitute an offer of securities for purchase or otherwise acquire such securities will be engaged in only
sale in the United States. The bonds have not been and will not be with, Relevant Persons. Any person who is not a Relevant Person
registered under the Securities Act or under the applicable securities should not act or rely on this announcement or any of its contents.
laws of any state of the United States and may not be offered or
sold, directly or indirectly, within the United States or to, or for the PROFESSIONAL INVESTORS ONLY – Manufacturer target market
account or benefit of, U.S. persons except pursuant to an applicable (MIFID II product governance) is eligible counterparties and
exemption from, or in a transaction not subject to, the registration professional clients only (all distribution channels). No PRIIPs key
requirements of the Securities Act. information document (KID) has been prepared as the bonds do
not constitute packaged products and will be offered to eligible
This announcement does not constitute a prospectus for the counterparties and professional clients only.
purposes of Directive 2003/71/EC, as amended (the “Prospectus
Directive”) and does not constitute a public offer of securities in any
member state of the European Economic Area (the “EEA”).
Eleving Group – Unaudited results for the twelve months ended 31 December 2022 25

info@eleving.com
www.eleving.com

eleving-group

elevinggroup