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Investor Presentaiton

Smartphone penetration and mobile banking usage Smartphone usage has grown substantially in the last couple of years, with global shipments expected to reach 1.4 billion units in 2018 ■ Growth in annual shipments has been stagnating since 2016, but the growth track is expected to recover in the coming years ■ Recent forecasts assume that total connections will grow to 6 billion over the next 6 years, equalling two thirds of all mobile connections in 2020 By 2020, smartphones are assumed to be the primary internet connection tool as well ■In addition, the usage of smartphones is expanding to all social classes and smartphone usage is expected to increase significantly in lower income segments and emerging markets Many smartphone users from lower income segments are currently underbanked and only use bank services for example to receive their salaries ■ As a result of the technological development in recent years, mobile banking has grown rapidly ■ Traditional banks have developed applications for smartphones and tablets to offer customers easy access to manage their accounts and payments via mobile ■ Number of mobile banking users globally reached 1 billion in 2017 and is expected to almost double until 2019 ■ The usage of mobile banking applications is mostly widespread within the younger population with most frequent users being aged between 25-34 ■ 42% of all banking customers within this age bracket are expected to use mobile banking applications in 5 years time compared to 21% per 2017 Global smartphone shipments (million units) Forecast 1,574 1,437 1,473 1,462 1,421 1,302 1,019 2013 2014 2015 2016 2017 2018E 2022E Global mobile banking users (billion people) +192% 0.8 0.6 +119% 1.0 1.8 2013 2014 2017 2019E Source: McKinsey, KPMG, Statista ferratum 46 46
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