Investor Presentaiton

Asset Quality - Impairment Policy and Credit Losses Comments ■ Overdue receivables are impaired in accordance to a mathematical model (Markov Chains) based on actual performance of the loan portfolio ■ All statistically expected credit losses based on this model (expected loss) are booked when paying out a loan (group average 6.8%) (IFRS 9 compliant) ■ Based on this risk provisioning model, credit losses come when paying out a loan and income on the longer term periods only over the term of the products ■In total, the Group has 31.5% in reserves of gross receivables as of December 2018 ■ Breakdown over impairments per basket of receivables is expressed in the table on the right ■ The reserving ratio (impairments compared to gross receivables) increases as the likelihood of recovery decreases when the receivables are more overdue ■ When a receivable is impaired, the receivable's carrying amount is reduced to the receivable's recoverable amount ■ The amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows ■ The amount of the loss is recognized in profit or loss as an impairment If the amount of the impairment loss decreases, the previously recognized provision for impairment is reversed by adjusting the allowance account through profit and loss for the year Quarterly gross impairments as percentage of gross receivables per corresponding point in time have been fairly stable throughout the last few years, but has shown a slightly decreasing trend in 2018, ending at 4.9% for Q4 2019 " Quarterly impairments for FY 2018 are not fully comparable to earlier years due to adoption of IFRS 9 Impairment per Basket of Receivables, December 2018 In EUR '000 GBV Provision for Impairments NBV Coverage ratio (%)¹ Not overdue 205,616 (13,898) 191,718 6.8 1-90 days due 92,961 (21,127) 71,835 22.7 91-180 days due 23,234 (13,252) 9,982 57.0 >181 days due 145,998 (98,996) 47,002 67.8 Total 467,811 (147,273) 320,538 31.5 Gross Impairments as % of Gross Receivables² Adoption of IFRS 9 Non-comparable to historical figures 6.4% 6.3% 6.3% 6.3% 5.8% 6.1% 6.1% 6.3% 6.3% 6.3% 5.8% 5.8% 5.7% 5.3% 5.2% 5.0% 5.3% 4.5% 4.8% 4.9% ferratum Source: Company filings. Interim financials for FY 2018 restated. Note: 1) Impairments / GBV (gross book value). 2) Adoption of IFRS 9 makes historical figures non-comparable to FY 2018 figures due to varying credit loss provisioning models 33

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