CREAMFINANCEEXPORT STRATEGIES FOR E-BUSINESS

MARCH 2016

MATISS ANSVIESULIS, CO-FOUNDER/CEO, Creamfinance

CONTENT

Introduction 3

Expansion Strategy 6

Export markets 15

WE MAKE MONEY AVAILABLE

2

INTRODUCTION

ABOUT MYSELF – BANKER TO UNEMPLOYED

WE MAKE MONEY AVAILABLE

3

INTRODUCTION

ONE CLICK LOANS TO CONSUMERS GLOBALLU

INTERNET

Three core skills

CONSUMER

LENDING

We make money availableis the mission of Creamfinance

Consumer loans onlinefast, easy, small to medium size non secured loans

WE MAKE MONEY AVAILABLE

4

CREAMFINANCE – SOLID FOUNDATION TO SCALE GLOBALLY

BrandsCountry Loan products Registered users

Target Consumer

Microloan, Cash loan

Microloan

Installment

Microloan

Subprime, Near prime 128,000

Microloan, Credit line Subprime, Near prime 106,000

Microloan, Cash loan Subprime 120,000

Microloan

Microloan

Subprime

Subprime

48,000

N/A

Near prime

Subprime

Near prime

25,000

170,000

5,000

Product portfolio short term loans, instalment loans and credit lines

Focus on convenience apply online, loans approved

in 10mins, funds paid same day

€25mil revenue and profitable

210 employees HQ in Warsaw, Poland

Now in 6 countries world-wide

Started in 2012in Latvia

Poland

Georgia

Latvia

CZ

Slovakia

Denmark

INTRODUCTION

WE MAKE MONEY AVAILABLE

5

EXPANSION STRATEGY

START OF CREAMFINANCE

WE MAKE MONEY AVAILABLE

6

EXPANSION STRATEGY

CREAMFINANCE EXPANSION STRATEGY

Legal entity, licences, service providers

12-18 months to break even

Foreign Direct Investment Team/office in every export market

We use PPC at first

WE MAKE MONEY AVAILABLE

7

EXPANSION STRATEGY

CHOOSING THE COUNTRY

Check competition – in the middle

OR – simply follow market leader

Bigger market size not always better

Don’t catch paralysis by analysis

Forget about macro, focus on micro

Check infrastructure

Build locally control centrally

4Build local teams or partnerships

3Do not

procrastinate with research

1Start small, move fast

2

WE MAKE MONEY AVAILABLE

8

EXPANSION STRATEGY

ENTERING THE COUNTRY

Be patient – more time and cost than planned

First time means mistakes - limit them

Be fast – learning starts after commitment

Be low profile - don’t over-spend

Do not procrastinate with research

1Build locally

control centrally

4Start small, move fast

2Build local teams or partnerships

3

WE MAKE MONEY AVAILABLE

9

EXPANSION STRATEGY

ENTERING THE COUNTRY

Office-Flat Reconstruction Ready to go

Do not procrastinate with research

1Build locally

control centrally

4Start small, move fast

2Build local teams or partnerships

3

WE MAKE MONEY AVAILABLE

10

EXPANSION STRATEGY

EXPAND LOCALLY

Example of a bad launch – CZ, where we did everything

ourselves

Hire a local professional in the export market

Hire young hungry professionals

Example of a great launch – GE, where

we hired a professional

Do not procrastinate with research

1Build local teams or partnerships

3Build locally

control centrally

4Start small, move fast

2

WE MAKE MONEY AVAILABLE

11

EXPANSION STRATEGY

EXPAND LOCALLY

Example of a bad launch – CZ, where we did everything

ourselves

Hire a local professional in the export market

Hire young hungry professionals

Example of a great launch – GE, where

we hired a professional

Patrick Koeck – Chief Risk Officer, Creamfinance

Do not procrastinate with research

1Build local teams or partnerships

3Build locally

control centrally

4Start small, move fast

2

WE MAKE MONEY AVAILABLE

12

EXPANSION STRATEGY

6x faster growthin last 2 markets

Revenue during first 12 months of operations

1494

1500

Thousand €

285

320

1236

0

CZ launch year 2012

SK launch year 2012

PL launch year 2013

GE launch year 2014

EXPAND LOCALLY

WE MAKE MONEY AVAILABLE

13

EXPANSION STRATEGY

MANAGING MULTIPLE EXPORT MARKETS

Do not procrastinate with research

1Build locally

control centrally

4Start small, move fast

2Build local teams or partnerships

3

Matrix management central/local and team location

Team split build wherever best people

CF HQ Poland, IT Austria,

Risk Latvia

Central/localrevenue local, control central

WE MAKE MONEY AVAILABLE

14

EXPORT MARKETS

Active registrations

Active registrations

46000

9557

20 % 21 %

1 %

Proportion of Revenue Proportion of Revenue

aggregators, local PPC

Proportion of Revenue

Active registrations38000

46 %Proportion of Revenue

Active registrations62000

12 %Proportion of Revenue

Active registrations65000

CREAMFINANCE EXPORT MARKET OVERVIEW

low price, aggergators aggregators, local PPC

aggregators, crowded

offline, relationships

WE MAKE MONEY AVAILABLE

15

WE MAKE MONEY AVAILABLE

Affiliate partners

API Partners PPC Direct & SEO Emailing & SMS

External partners

Other

0%

20%

40%

60%

80%

100%

traffic

CZ GE LV

PL SK

from local entities establishment

MANAGING MULTIPLE EXPORT MARKETS

EXPORT MARKETS

WE MAKE MONEY AVAILABLE

16

© CREAMFINANCE 2016

MATISS ANSVIESULIS, CO-FOUNDER/CEO, Creamfinance

ansviesulis.com @MAnsviesulis

matiss.ansviesulis@creamfinance.com