Buy Way - Annual Report 2012

SERVICES

CREDITS

INSURANCE

CARDS

TECHNOLOGY

Annual Report2011

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Annual Report 2011

Profi le p. 4

2 Editorials p. 6

3 Governance p. 8

4 Key facts and history p. 10

5 Key numbers p. 12

6 Partnerships p. 15

7 Innovations p. 18

8 Compliance p. 20

9 Risk management p. 21

0 Our values p. 22

Sustainable development p. 23

2 financial reports p. 24

Express Phone24h/24 & 7d/7

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for more information:[email protected]+32 (0)2 209 81 83www.buyway.beFollow us on:

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Annual Report

Profi le

2 Editorials

3 Governance

4 Key facts and history

5 Key numbers

6 Partnerships

7 Innovations

8 Compliance

9 Risk management

0 Our values

Sustainable development

2 financial reports

Address



070/222.650

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The specialist in consumer credit

We offer a range of products and services:

> Credit cards (now also deferred debit cards and prepaid cards).

> Auto loans.

> Technical and operational partner in the management of consumer credit on behalf of third parties.

> Broker for loans and insurance.

The commercial visionWe are there at the side of our partners and clients to:

> Offer optimal financing solutions while prioritising the ability of our clients to repay loans.

> Offer personalised attention to each case in our portfolio, thus ensuring a service which is even better performing.

> Innovate by launching new products which further facilitate the «act of purchase».

> Serve the clients of our partners to whom we make available our platform.

Reliability

Providing financing solutions at the point of sale requires a reliable information system which has been developed and is maintained by expert teams. This is the challenge which our teams meet successfully on a daily basis.

Leadership

Already the leader in financing at the point of sale in Belgium and the Grand Duchy of Luxembourg, Buy Way plans to make use of its exceptional expertise and become a European-level actor in consumer credit at the point of sale.

Profil

Credit cards – Deferred debit cards – Prepaid cards – Auto loans –Technical

and operational partner – Broker for loans and insurance

NO.1 IN CREDIT AT THE POINT Of SALE IN BELGIUm AND THE GRAND DUCHY Of LUxEmBOURG

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Entities

Buy Way Tech

A company 100% owned by Buy Way Personal Finance which possesses the technology used by members of the EEIG, particularly the license for the SICLID software platform.

Buy Way Personal finance

A company incorporated under Belgian law which is owned by Wallet and approved as a « lender » in the fi eld of consummer credit. A fi ling as « payment establishment » has been made with the supervisory authorities.

EEIG Buy Way Services

A European Economic Interest Group whose members use the technology and knowhow of Buy Way Tech.

The EEIG comprises the following members:

• Buy Way Personal Finance

• BNP Paribas Personal Finance (Nederland)

• KBC Consumer Finance

• FIMASER (a Joint Venture between the Carrefour Group and the BNP Paribas Personal Finance Group)

The operating costs of the EEIG are shared among its members according to an allocation table agreed by common agreement.

Management of the EEIG is provided by Damien Guermonprez, CEO of Buy Way Personal finance.

Apax Partners: a committed shareholder at our side

Buy Way Personal Finance is 100% owned by Wallet, a holding company whose principal shareholders are the funds APAX France VII (50.5%) and the company Altamir Amboise (38.3%) which is quoted on the Paris Stock Exchange.

Legal flow Chart

Buy Way Tech

KBC Consumer

finance

Buy Way Personal finance

fimaserBNP Paribas

Personal financeNederland

EEIG Buy Way Services100 %

100 %

Wallet

Apax Partners

BUY WAY PERSONAL FINANCE > Annual report 2011

message from the Chairman:

The 2011 operating profit of €10.8M has just validated the 2010 profit of €5.4M. In 2010 Buy Way Personal Finance reached the critical size needed to cover management costs which are always very high in the domain of consumer credit, but opportunely it was able to share them with three other partners in an EEIG of resources. As one can confirm from other facts, this progress was made under excellent conditions of risk, with the rules of credit approval adjusted to an economic crisis which goes back to the end of 2007. In this way, the financial results confirm the robustness of our business model notwithstanding a still fragile economic environment and this encourages us to continue our strategy for growth.

This is how we have increased the diversification of our revenues while marketing our knowhow through a subsidiary created for this purpose: Buy Way Tech. In 2011, this subsidiary signed an assistance contract with KBC Consumer Finance along with the sale of the part owned by Buy Way in this subsidiary of KBC Bank. It also receives revenues from IT licenses granted to members of the IT EEIG (BNP Paribas Nederland, Fimaser, KBC CF, Buy Way PF). Meanwhile, the marketing and sales of insurance products via client files and the contribution of the revenue from auto loans to a subsidiary of the ING Group have made it possible to strongly grow the receipts from commissions while reducing little by little the outstanding debt on long depreciable loans and risk exposure. The consequence of this policy of diversification of our resources, net income, grew by 13% to €43M versus €38M the previous year.

This change in our business model makes it possible to promote the skills which have made Buy Way such a success in consumer credit. In the end, I have seen the managerial staff and teams of Buy Way acquire experience which is unique in Belgium and which allows our company to grow despite the economic and financial difficulties of our time. Whereas most actors in the credit sphere have a hard time dealing with the rising risks, Buy Way has improved its performance. I can add to this professionalism a strong team spirit which has made it possible during this period to take and quickly execute management decisions which the times have required. As a result, Buy Way has closed the financial year stronger and more robust than when it began. We warmly thank all our employees for this achievement.

Christian Guiraud CHAIRMAN

EDiToriAlS2

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Damien Guermonprez - Christian Guiraud

«We want to contribute to the success of our partner store chains and auto dealerships, but also to give our clients a positive

experience in a relationship of long-term trust. »

Damien GuermonprezCEO

message from the CEO:

Buy Way is a new independent brand on the consumer credit market which capitalises on the knowhow of a company which was well launched some twenty years ago within the sector of distribution.

Our mission is to develop human and responsible credit which is accessible to the greatest number of people at our partners’ sale points. To achieve this, we want not only to contribute to the success of our partner store chains and dealerships but also to arrange for our clients to have a long-lasting positive experience.

This means creating purchasing power while making certain that our clients will be able to meet the deadlines for paying off their loans and will be very satisfi ed with our services. Our methods of granting credit are the result of a lot of practical work and are suited to protecting our clients, as we see from our excellent fi gures pertaining to risk. As regards the quality of service, we succeed in reaching our objective every time our clients become the ambassadors of our brand.

The results of this policy have materialised: in 2011 we grew our net income by 13% to €43M thanks to the development of our various products (commissions, fees, technical assistance, IT licenses). Consequently, the share of fi nancial margins this year only represents 65% of the net income of Buy Way versus 78% in 2010. General expenses grew by 7% to €25.1M but were under control and the operating ratio was taken down from 61% to 58% of net income.Our Cost of Risk of €7.2M has declined for the fourth year in a row. The risk cost thus came in at 17% of net income while maintaining reserves greater than 80% of doubtful outstanding debt.

Next, our net profi t from operations has doubled and comes to €10.8M. This demonstrates the robustness of our economic model in a period of crisis.

Finally, Buy Way also puts its expertise to work for partners in the world of banking via the EEIG Buy Way Services, which has seen its activity grow by 12% in 2011.

In 2012, our new company Vision will confi rm our leadership through innovation. Buy Way is presently reconstructing its new IT tool «front» in order to make it more competitive for us, but above all for our partners among stores and automobile dealerships. Buy Way is also strengthening its presence in new distribution channels in order to act as a fi nancial services hub and be ready to serve more clients with a maximum of effi ciency.

I invite you to look over our second annual report, which illustrates the year 2011 and our areas of growth.

Enjoy your reading!

Damien GuermonprezCEO

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BUY WAY PERSONAL FINANCE > Annual Report 2011

CEODamien Guermonprez

Executive Secretary Internal Audit

Head of ICTLionel Blart

Business Applications

GlobalInfrastructure

ICTSecurity

CfOHugues Lucet

FinancialPlanning

Accounting

Head of Sales & marketing

Ugo Setti

Direct Sales & Marketing

Retail

Automotive

Head of RisksJérôme Vallée

Risk Assessment & Direct Granting

Scoring &Expert Systems

Credit Collection& Litigation

GoVErNANcE3

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Lionel Blart Head of ICT

Ugo Setti Head of Sales & Marketing

Jérôme Vallée Head of Risks

Hugues Lucet CFO

Damien Guermonprez CEO

Head of Compliance & Indebtedness

Thierry Genard

Compliance

Indebtedness

Fraud

Head of AdministrationChantal Brabander

Human Ressources

ProjectManagement

Legal

FacilityManagement

Board of DirectorsBuy Way Personal finance:

Christian GUIRAUD, Chairman

monique COHEN, Administrator

Guillaume COUSSERAN, Administrator

Jacques CAmPAGNE-IBARCQ, Administrator

Apax Partners, represented by:

Julien GAUTHIER, Administrator

Damien GUERmONPREZ, CEO

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Chantal Brabander Head of Administration

Thierry Genard Head of Compliance & Indebtedness

Key structural facts

KEy fAcTS AND HiSTory4

Buy Way: the brand with knowhow

In October 2010, BNP Paribas Personal Finance Belgium turned an important page in its history and called upon Buy Way Personal Finance. We thus became an independent actor on the consumer credit market in Belgium and the Grand Duchy of Luxembourg. In 2011, Cetelem and the Aurora network in turn moved aside to make room for our new brand: BUY WAY. A new inspiration and, from day to day, tremendous prospects!

Today all the Buy Way teams are based at Boulevard Anspach, in the centre of Brussels. In April 2012, we comprise a team of 250 professionals who are passionate about their various skills.

Sale of our participation and continuation of the partnership

In 2011 Buy Way sold its 40% participation in KBC Consumer Finance (ex KBC Pinto Systems). The existing collaboration between Buy Way and KBC Consumer Finance within the EEIG has been extended and a new agreement was signed between the two parties.

Creation of Buy Way Tech

A service company created in April 2011, Buy Way Tech makes available:

• Its technology for the benefit of the EEIG and its members.

• Its technical expertise for the benefit of its partners.

ConsumerFinance

• Brokerage channel.

• Creation of Fimaser, a 40/60 Joint Venture between the Cetelem Group and GB-Inno-BM.

• Promotion of credit.

• Set-up of Cetelem Belgium, a 60/40Joint Venture between the Cetelem Group and the GIB Group.

• The Cetelem Group takes 100% of the shares of Cetelem Belgium and enters the Luxembourg market.

• Cetelem Belgium signs an agreement with the KBC Group to make available to the KBC entities Centea and CBC the technology of revolving credit cards.

• Internet channel.

• Auto loans.

1988 1996 2000 2005

2006

2007

A HISTORY OF PERMANENT CHANGE

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Distribution:

• 27% growth in client recruitment thanks in particular to our partner Makro.

• Signing and launch of new agreements with the store chains Galeria Inno and Fit for fun.

• Exclusive partnership with the Photo Hall and Hifi International store chains.

Auto Loans:

• Successful partnership with Record Bank.

• Renewal of exclusive agreement with KIA.

Direct Activities:

• 46% increase in activity in 2011.

• Successful launch of the prepaid card.

• New Smartphone channel.

• Monthly statements in colour.

Brokerage in loans and insurance:

• Signing of numerous partnerships with lenders and insurance companies.

• Successful campaign launched with Genworth.

Noteworthy facts about our activities

• New cards co-branded with VISA and MasterCard.

• Acquisition of UCBEL, a specialist in mortgage loans. Cetelem Belgium is renamed BNP Paribas Personal Finance Belgium.

• In December, put up for sale BNP Paribas Personal Finance Belgium following a decision of the European Commission responding to the purchase of Fortis by BNP Paribas.

• Merger with Fidexis, which was initially owned 51% by Dexia and 49% by the French company Laser Cofinoga.

• Purchase by the investment fund Apax Partners and transfer of the mortgage activity to Fortis.

• Smartphone channel.

• Brokerage activity.

• Name change to Buy Way Personal Finance and Buy Way Services. Replacement of the Cetelem brand by Buy Way.

• Sale of the 40% share in KBC Consumer Finance.

• Prepaid card.

2008 2009

2010

20122011

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> TOTAL PRODUCTION

2007 4192008 3962009 3472010 3362011 333

Production (€ m.)

Credit Cards – New financing

2007 2522008 2682009 2392010 2242011 243

Consumer Loans - Direct & Broker

2007 602008 322009 192010 212011 4

Consumer Loans - Automobile

2007 622008 602009 632010 682011 64

Consumer Loans - Retail

2007 44

2008 352009 262010 232011 22

Consumer credit area (IfRS Data)

KEy NUMBErS BUy wAy PErSoNAl fiNANcE

5

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Net tax before profit (€ m.)

Net Banking Income (€ m.)

38 5.4

2010 2010

43

2011

216

Number of employees (full time)

2010

220

2011

10.8

2011

2010

516 381

2011

552 536

Equity (€ m.)

76.8

2010

111.4

2011

Capital adequacy ratio (%)

12.1 %

2010

18.9 %

2011

Cost of Risk (% of outstanding debt)

1.9%

2010

1.6%

2011

Amount of credits granted (€ m.)

2010

336 333

2011

Number of clients Number of active clients

2010

251 797

2011

263 379

Outstanding debt (€ m.)

Credit Cards – Outstanding

2007 2362008 2502009 2362010 2342011 253

Consumer Loans - Direct & Broker

2007 1172008 1002009 862010 742011 52

> TOTAL OUTSTANDING

2007 4582008 4882009 4852010 4882011 493*

Consumer Loans - Retail

2007 322008 302009 262010 252011 24

New cards

2008 68 8692009 53 4552010 40 9622011 51 899

Cards + Loans

2008 100 6812009 78 8462010 63 7872011 71 017

New loans

2008 31 8122009 25 3912010 22 8252011 19 118

* Of which 52.7 discounted.

Consumer Loans - Automobile

2007 722008 1072009 1352010 1552011 164*

BUY WAY PERSONAL FINANCE > Annual report 2011

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111

440

Other key numbers

Social statistics:

> 250 employees on the payroll, equivalent to 220 full-time employees.

> Men: 45%.> Women: 55%.> Average age: 30 years old.> 13 nationalities.> Absenteeism rate: 4.84%.

Volume of client communications in 2011:

> 1 million calls handled.> 3 million letters sent and received.> 4.5 million emails sent and processed.

Annual cost per case (€)

2008 17.92009 16.12010 12.22011 11.8

Number of cases processed

2008 660 3332009 771 4102010 1 017 2422011 1 139 835

Total annual cost (€ m.)

2008 11.82009 12.42010 12.42011 13.5

KEy NUMBErS of THE EEiG BUy wAy SErVicES

5

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With major store chains and independents

As an active and committed partner, Buy Way supports chain stores and independent distributors and makes available to them the tools which allow them to achieve two essential objectives: to increase their sales turnover and enhance their relationship with their clients.

> To increase the turnover of the partners by:

- Increasing the frequency of visits to points of sale. - Significantly enlarging the average purchase.

> To enhance their relationship with their clients thanks to:

- A relationship with clients which begins at the point of sale. - Solutions adapted to their needs. - A long-term relationship supported by permanent

communications.

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PArTNErSHiPS6

Instalment loans

Cards

10 YEARS OF STRONG AND FRUITFUL COLLABORATION BETWEEN MAKRO AND BUY WAY WHICH DEMONSTRATES THE IMPORTANCE OF OUR PRODUCTS AND SERVICES FOR MODERN DISTRIBUTION.

www.hifi.lu

IL Y A TOUJOURS UN MAGASIN HIFI INTERNATIONAL PRES DE CHEZ VOUS

PArTNErSHiPS (coNTiNUED)6

Distribution sector

Buy Way aims to continue to take market share in its two historic markets, Belgium and the Grand Duchy of Luxembourg.

Buy Way has implemented a partnership with Galeria Inno after having won a call for bids in 2010. We have also signed with the chain Fit For Fun, which has 16 centres.

In February 2012, Photo Hall decided to extend and to strengthen its partnership with Buy Way by entrusting us with exclusivity.

Sector of financial services

As independent actor, Buy Way is in a unique position which allows it to forge innovative partnerships with other actors of the financial sector.

BANKS

� KBC Consumer finance is a member of the EEIG and enjoys the use of the Buy Way Services platform.

� fimaser, a Joint Venture between the bank of the Carrefour Group and the BNP Paribas Personal Finance Group, enjoys the use of this same platform.

� Record Bank, an agreement on refinancing the auto loan activity and partnership with our brokerage activity.

INSURERS AND BROKERS

� Cardif, De Limburgse, Wall’assur, Record, ZA, Afi Esca, Genworth, Krefima:

Via this new channel, Buy Way has positioned itself as a broker and offers its clients tailor-made solutions.

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ConsumerFinance


Sector of automobile dealerships

Thanks to its status as independent actor, Buy Way has also been able to carve out for itself an important place in the sector of auto loans and financing recreational vehicles with the KIA brand as the partner of reference.

Victory of KIA BUY WAY in the BTCS 2011 touring cars championship.

For a first time experience as sponsor of a sporting event, this was a total success. The Kia Buy Way was at the top of the championship nearly from start to finish of the competition, thereby upending the official so-called factory teams. The Kia Pro Ceed was piloted by Philippe Stéveny and Didier de Radiguès, who marked here his return to auto competitions.

Buy Way stands alongside its dealership partners, whether in their showrooms or on the track.

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« We are constantly looking for «the» solution which will best meet the needs of our clients at this time.

Whether this has to do with credit cards, personal loans, auto loans or insurance, Buy Way is committed to fi nding a response

to the requests of its clients. That’s in our DNA. »

Ugo SettiHead of Sales & marketing

With respect to innovations, Buy Way focuses a large part of its attention and its energy on 4 new areas: the internet and smartphone channels, prepaid cards and monthly statements.

Internet channel

In 2011, Buy Way completely revisited its internet site and reworked its Homebanking having in mind the main objective of providing greater convenience to its clients. Web shopping has moved farthest ahead for clients supplied with co-branded MasterCards. This card makes it possible to buy on line with a 0% Effective Annual Overall Rate credit.

Smartphone channel

At the start of 2012, Buy Way launched an application dedicated to managing one’s credit card from a smartphone. This allows the user to see his available balance or an online payment to his account and to request an increase in his credit line.

iNNoVATioNS 7

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«Buy Way is not only a fi nancial actor; it is above all a company which knows how to identify opportunities

and to transform them into commercial and corporate success. Innovations and developments

must be designed and implemented so as to be useful to the company, its partners and clients.»

Lionel BlartHead of ICT

New monthly statement

How can we improve the information intended for our clientele and at the same time engender a new line of commercial growth? This is the equation that Buy Way solved by developing together with Speos, a subsidiary of bpost, a new monthly statement which is ultra-personalised and in colour. Here we see a real opportunity to satisfy our clients by offering them a better structured monthly statement which is clearer and more transparent, while sending messages about opportunities directly linked to their profile. The first quantitative and qualitative results prove it: these new monthly statements are both a real «plus» for our clients and a true lever of profitability for us.

Prepaid cards

A pioneer and precursor of the prepaid card in Belgium and in the Grand Duchy of Luxembourg, Buy Way launched a prepaid card linked to a credit card in 2011. This launch was recognised and hailed by professionals in the sector who nominated it for the «2011 Trophy of Innovative Cards» in the category «International – Prepaid Cards». The card is used like a MasterCard because it has all the functionalities: payments, cash withdrawals, purchases at points of sale and on the internet. It is also available in a «plastic» version and a virtual version for online operations. With full security and discretion because it bears no name.

Based on this success, in 2012 Buy Way launched a new prepaid card which is not built onto a credit card. It is available online and from a wide network of distributors in Belgium. It will also have all the functionalities of a MasterCard.

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Processes and procedures are the guarantors of the quality of our customer service. But they also assure the proper functioning of a company as complex and high performance as Buy Way. Three control bodies co-exist within our organisation, each having a clearly defined role and limits.

Compliance

Monitoring compliance is an independent, impartial and objective function.

Its role, its domains of competence, as well as its principles of governance are set out in the Charter of Compliance:

> Combat money laundering and the financing of terrorism.

> Integrity in relations with clients throughout our activities.

> Protection of data and business secrets.

> Preventing conflicts of interest.

> Independence of the auditors.

> Whistleblowing.

> Any other domain assigned by the Management Committee or the Board of Directors.

The tasks

> To analyse legislative and regulatory developments in order to anticipate and evaluate possible consequences for the activities in collaboration with the legal department.

> To identify, analyse and measure the risks of non-compliance and risk to reputation which might result from present and future activities and financial products or from any change in the company’s area of activity.

> To help build skills in the framework of developing and putting in place procedures for maintaining compliance and other documents.

> To see to it that obligations with respect to compliance are being respected, while in particular taking into accountthe risks incurred.

> To communicate to the financial regulators or to any other competent authority every suspicious incident or transaction to the extent required by local regulations.

> To be the first interlocutor of the regulators.

Internal audit

Internal audit is an independent and objective activity which has the mission of giving Buy Way insurance on its success in managing its risks while watching out for its high performance character and the effective application of the system of internal controls by formulating, as necessary, recommendations aimed at improving effectiveness and being attentive to the constant changes in all the entities of the company.

A charter of audit sets out the fundamental principles which govern the function of internal audit, describing its objectives, its role, its responsibilities and its modalities of operation.

The strategy, the level of requirements and the operating rules of the internal audit are determined by the Management Committee in a framework approved by the Committee of Audit, Risks and Compliance.

External controls

Verification of the company’s financial situation and of its annual accounts is entrusted to an auditor which is proposed by the Administrative Board and is appointed for a maximum period of three years by the General Meeting of Shareholders. The function of legal audit of the accounts of Buy Way is performed by Mazars Réviseurs d’Entreprises SCRL, a company represented by Mr. Dirk STRAGIER.

coMPliANcE8

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« Processes and procedures insure the quality of our customer service »

Thierry GenardHead of Compliance & Indebtedness

Buy Way is a responsible and committed actor of consumer credit. That is why enhanced vigilance with respect to over-indebtedness and in-depth analysis of the client’s situation constitute the expertise enabling us to better direct our activities. This allows us to increase the satisfaction level of clients, but also to avoid having to spend too much effort with claims or collections.

The 2011 Cost of Risk at Buy Way is expressed in IFRS at €7.2M and shows constant decline compared to preceding years:

> A 22% drop compared to 2010.

> A 40% drop compared to 2009.

Risk is under control and amounts to 1.6% of indebtedness.

This reduction of exposure to risk is explained by:

> Revised and improved systems of scoring, granting credits and collection.

> A net diminution of the unpaid sums.

> An ever more effective chain of collection.

The excellent shape of risk has made it possible to maintain growth of the company’s profits.

This is an expression of the specific and sustainable knowhow at Buy Way.

Over-indebtedness and money laundering are the principal risks for Buy Way. The fight against over-indebtedness also represents a commitment by the company to differentiate itself from its European competitors by demonstrating, with the numbers at hand, that granting credit is done in a responsible fashion. In fact, Buy Way has one of the lowest levels of Cost of Risk in the profession in Europe.

riSK MANAGEMENT9

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BUY WAY PERSONAL FINANCE >Annual Report 2011

Cost of Risk stated in accordance with IfRS

« Our low Cost of Risk is the result of our steady determination to practice respectful,

ethical and responsible credit. »

Jérôme ValléeHead of Risk

3,00%

2,50%

2,00%

1,50%

1,00%

0,50%

0%2007 2008 2009 2010 2011

- 40 %in euros

2.8 % 3.2 % 2.5 % 1.9 % 1.6 %

« Our low Cost of Risk is the result of our steady determination to practice respectful,

ethical and responsible credit. »

Jérôme ValléeHead of Risk

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oUr VAlUES

Our staff has been trained to respond to every question related to credit in an environment which is constantly changing.

AGILITY

At Buy Way we are actively working at improving cohesion between the departments, with the determination to grow all together in the same direction.

SOLIDARITY

Our ICT (Information & Communication Technology) teams enable Buy Way to offer its commercial partners ultra-high performance and constantly updated tools for financing decisions.

RELIABILITY

We communicate the information necessary to manage credit in a transparent manner (via detailed monthly statements, home banking, email, SMS, vocal server, etc.).

TRUST

• Our advisor teams serves our end customers with a 97% rate of response to incoming calls.

• Our advisors at partner points of sale are entirely devoted to clients and to our favoured partners.

SERVICE SPIRIT

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« At Buy Way, we invest in permanent training in order to fully identify the present

talents and to attract new ones. »

Chantal BrabanderHead of Administration

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As a responsible company, Buy Way does not hesitate to assume long-term undertakings. These commitments are an integral part of the company’s development. Three areas are prioritised:

The expertise of a company specialised in the credit domain like Buy Way rests on its ability to extend loans to its clients wisely by evaluating their ability to repay the loan. Our rate of risk is the lowest in the market. This is the result of specific and long-lasting knowhow. It is essential that both the borrower and the lender act responsibly towards one another.

Several lines of action:

� Towards the client: • Long established expertise evaluating the risks of

over-indebtedness. • Systematically looking over the files of the Main Credit

Office of the National Bank of Belgium.

� Towards the in-house administration: • Monthly measurement of risk by two different departments:

Risk and Compliance. • The objectives of our employees are aligned with the

objectives of risk management. • Respect for the in-house code of ethics. • Financial vigilance.

� Respect for external standards: • Federal Public Service - Economy. • National Bank of Belgium. • Professional Union of Credit Providers.

� Code of Ethics and Code of Behaviour: • Put in place a Buy Way Code of Ethics: rules of «good

conduct» for individuals and groups, as well as principles and obligations deemed necessary by all the actors so as to act with integrity and loyalty.

• Adhesion to the Code of Conduct of the Professional Union of Credit Providers.

SUSTAiNABlE DEVEloPMENT

Reduce the risks of over-indebtedness and combat money laundering.

In a very cosmopolitan city l ike B r u s s e l s , j o b d i s c r i m i n a t i o n constitutes another very important challenge. Buy Way works to achieve d i v e r s i t y i n i t s s t a f f : i t s 2 5 0 e m p l o y e e s t o d a y c o m p r i s e 1 3 nationalities. We have also signed the Charter for Diversity for companies. The Head of Administration in charge of Human Resources sees to its application.

2 Combat discrimination in employment.

With respect to customer service, every year with the help of an outside and independent company we measure the way we honour our commitments both towards our B2B partners and the final customers.

The company undertakes to communicate and ensure respect for the ten commitments made to the customer: transparency, the right price, services oriented towards the customer, confidentiality, customer satisfaction, management of the credit cycle, data collection, management of credit risk, risk prevention and debt management.

On this last point, Buy Way takes as its basic principle to collect claims while listening closely to the customer. We have several types of solutions suited to different problems encountered. The objective is to deal with the outstanding loan as a whole, not just the unpaid part.

3 Quality of the service rendered to consumers.


ASSETS IfRS in € Notes 2011 2010

Cash and cash equivalent 14 229 567 27 438 885

Customers loan (1) 396 671 171 440 558 743

Financial assets (2) 81 495 2 471 495

Tangible assets 360 371 363 864

Intangible assets (3) 20 000 791 20 571 453

Other receivables (4) 24 387 635 12 271 833

455 741 021 503 676 275

LIABILITIESIfRS in € Notes 2011 2010

Equity 111 471 802 76 854 710

Financial debts 336 072 000 418 172 000

Other payables 8 197 2 1 8 8 649 565

455 741 021 503 676 275

(1) The portfolio of loans is accounted according to the method of effective rates (IAS 39). (2) The 40% minority interest in KBC Consumer Finance was sold in 2011. (3) Goodwill reported during the merger between Fidexis SA and BNP Paribas Personal Finance Belgium.(4) Incorporates deferred taxes with the assets in the amount of €16.6M, of which €7M for 2011.

Balance Sheet

fiNANciAl rEPorTS of BUy wAy PErSoNAl fiNANcEcoNSoliDATED NUMBErS

« The good results of 2011 confi rm the strategic orientations adopted in 2010: diversifi cation via

servicing and intermediation, plus the modifi cation of our product mix towards

products with high added value. »

Hugues LucetCfO

Off-balance sheet

In October 2010, Buy Way Personal Finance signed with BNP Paribas fortis a confirmed credit of €600M, adjusted to €400M in December 2011 at the initiative of Buy Way, guaranteeing its refinancing over the next few years.

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Profit/Loss Account

PROfIT/LOSS ACCOUNT IfRS in m€ 2011 2010

Interest income 38.4 41.4

Interest expenses -10.5 -11.8

Net financial margin 27.9 29.5

Insurance and other revenue 19.1 11.9

Commissions paid -4.0 -3.4

Net profit 43.0 38.0

General expenses -25.1 -23.4

Net operating profit 17.9 14.7

Cost of Risk -7.2 -9.2

Profit/loss before taxes 10.8 5.4

PROfIT/LOSS ACCOUNT IfRS in % of outstanding debt 2011 2010

Interest income 8.3% 8.5%

Interest expenses -2.3% -2.4%

Net financial margin 6.1% 6.1%

Insurance and other revenue 4.1% 2.5%

Commissions paid -0.9% -0.7%

Net income 9.3% 7.8%

General expenses -5.4% -4.8%

Net operating profit 3.9% 3.0%

Cost of Risk -1.6% -1.9%

Profit/loss before taxes 2.3% 1.1%

OTHER fINANCIAL RATIOS 2011 2010

General expenses / net income 58% 61%

Risk /net income 17% 24%

The accounts presented here are an abbreviated version of the statutory annual accounts prepared in accordance with the applicable regulations in Belgium. The auditor Mazars réviseurs d’entreprises, represented by Dirk Stragier, has certified the annual accounts of Buy Way Personal Finance unreservedly and they were approved during the General Meeting of Shareholders on 8 May 2012.

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Highlights facts of the financial year

> Transfer of the 40% participation in KBC Consumer Finance.

> Creation of the 99.9% owned subsidiary BUY WAY Tech.

> Revision of the coefficients for the reserve funds following a new study.

Activity

In the course of the financial year 2011, the production of credits came to €332.8 M.51 899 new credit card accounts were opened in 2011, i.e. an increase of 27% compared to 2010. The outstanding debt on cards as of 31/12/2011 came to €439.8 M, i.e. 10% less than in 2010, due to the implementation of the partnership with Record Bank.

2011 results

The operating profit of Buy Way reached €10.8M in 2011, i.e. the double of profit in 2010. This result confirms the strategic orientations in place in 2011.

> A 13% increase of the NBI:

- Diversification of revenue sources: servicing and intermediation.

- A modification of the product mix towards higher value added products.

> A 7% rise in general expenses.

> A 22% diminution of the Cost of Risk.

fiNANciAl rEPorTS of BUy wAy PErSoNAl fiNANcE coNSoliDATED NUMBErS (coNTiNUED)

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Buy Way - Annual Report 2012

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