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Symfonie P2P, LTD

30 March 2014
- Proprietary and Confidential
London: 16 High Holborn, London WC1V 6BX Prague: Klimentska 1216 / 46, 110 00
T: +44 20 8616 7311 F: +44 20 8616 7499 T: +420 724 260 952 F: +420 222 191 200
This publication has been prepared by Symfonie Capital, LLC (Symfonie) for information purposes only. It is not an offer or solicitation
for the purchase or sale of any financial instrument. The publication and its contents are subject to changes. The timing and substance
of any changes are at the sole and absolute discretion of Symfonie. Symfonie bears any obligation nor makes any commitment to inform
any person of changes made. Investors should not rely on this document in the course of making any investment decisions and neither
Symfonie Capital bear no responsibility for the decision of any person to rely on this document in whole or in part. Reasonable care has
been taken to ensure that the information contained herein is not untrue or misleading, but no representation is made as to its accuracy
or completeness. This document is confidential and proprietary to Symfonie. Transmission or publication of this document without the
express prior consent of Symfonie is strictly prohibited. Symfonie Capital reserves all legal rights in connection with the publication of
this document. Symfonie Capital, 2013.
Contacts
Symfonie Capital
Michael Sonenshine
Tel: (London) +44 20 8616 7311 (Prague) + 420 222 191 008
msonenshine@symfoniecapital.com
Window of Opportunity
Symfonie aims to build a profitable Peer to Peer finance business that provides consumers and businesses a
convenient way to borrow at competitive rates and offers investors the opportunity to earn significant higher
rates of interest than they earn on classical term deposits.
Peer to Peer finance entails the provision of an internet platform that functions as a marketplace where
borrowers and savers can meet. The internet platform does not constitute provision of loans. Rather, it is a fee
based financial service.
In addition to matching borrowers and savers the internet platform will enable companies seeking finance to
present their businesses to investors looking for investment opportunities. The platforms business revenues
will come from listing and advisory fees paid by businesses and investors
Focus on Central Europe
Relatively fast economic growth
Efficient banking systems
Increasing internet penetration
Open market access to credit providers
Wide gap between borrowing and lending rates
Legal protections for creditors
High growth market segments
Consumers increasing ability and willingness to borrow
SME growing business sector, under-served due to tightening credit requirements among banks
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 4
Winning Strategy for P2P Business
Innovate - develop products that are more attractive than what is available in traditional
distribution channels
Refinance help credit worthy borrowers refinance high interest rate loans
Find underserved segments - reach borrowers who do not meet threshold requirements in the
banking sector, yet who are credit worthy
Leverage core competence in credit - segment borrowers into risk bands and work with
them to manage their borrowing needs
Restructure and recover - finding restructuring and recovery solutions that address lenders
ultimate goal of generating a favorable return/risk ratio
Develop scale and scope - address the needs of a wide range of borrowers
Cross Sell identify other financial products that can be sold to the customer base
Regional expansion export good systems and practices to enter other markets
Develop alliances create synergies by identifying good providers in other markets and
broadening platform access
Business Plan Overview
BaseModelinGBP
ModelDrivers Y1 Y2 Y3 Y4 Y5 Y6 Y7
DealsClosed 2,660 10,620 23,400 36,300 49,200 63,600 78,000
Loansvalueoriginated 4,079,755 16,288,344 35,889,571 55,674,847 75,460,123 97,546,012 119,631,902
YearEndOutstandingLoans 3,742,162 16,946,484 42,041,423 72,629,300 104,742,531 138,678,932 174,073,015
TotalYearEndHeadcount 8 14 25 34 46 57 70
Revenues Y1 Y2 Y3 Y4 Y5 Y6 Y7
OriginationFees 122,393 488,650 1,076,687 1,670,245 2,263,804 2,263,804 2,926,380
LoanServicingFees 8,928 79,500 270,965 613,957 1,041,300 1,512,599 1,994,478
PPIFees 4,464 39,750 135,483 306,979 520,650 756,299 997,239
TotalRevenues 135,785 607,900 1,483,135 2,591,182 3,825,753 5,195,278 6,580,675
NetIncome Y1 Y2 Y3 Y4 Y5 Y6 Y7
EBITDA 333,675 119,416 412,458 919,765 1,599,673 2,349,059 3,090,450
Corporatetax 73,408 26,272 90,741 202,348 351,928 516,793 679,899
Netprofit 260,266 93,144 321,717 717,417 1,247,745 1,832,266 2,410,551
Data are based on the current business plan and are subject to change.
Milestones
Seed capital - Done. The company was seeded with a GBP 100,000 from the founders and
Symfonie Angel Venture Fund, LP
Management team Done. The company recruited a team of highly experienced professionals
to execute the strategy.
Platform Development Operating software has been purchased and is being customised to
support operations in EUR/USD/GBP/CZK/PLN.
Credit Models Credit scorecards for Consumer and SME loans are in development and being
back tested against live data. We will have proprietary models and in addition we are
contracting with Experian for expert scoring models.
Capital Raise In process. The Company is raising GBP 150,000. This will see us through
launch of commercial operations.
Launch of Commercial Operations planned for September 2014.
Investor Terms Round 1
Total Capital Raised Up to GBP 150,000
Total shares sold 75,000 25% of the Company, post money)
Preferred Shares
Voting
10% dividend, plus participation in overall company dividend
CZK 75 / EUR 2.7 / GBP 2.4 / US$3.8 per share
Common Shares
Voting
CZK 65 / EUR 2.4 / GBP 2 / US$3.1 per share
Note: the companys base currency is pounds, so the price when translated into other currencies
is subject to change.
Business Opportunity
Central and Eastern Europe is a market of
92 mn people
EUR 877 bn in GDP
Approximately EUR 50 bn in consumer
debt
About EUR 600 bn in commercial debt
Debt/GDP in Central and Eastern Europe
is about 50% of debt/GDP in Western
Europe.
GDP growth is generally higher than in
Western Europe while unemployment is
generally lower
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Valuation
The business is valued with DCF (r=30%) and with an assumed earnings multiple of 15x
earnings. Once functioning and developing according to plan the business should have value in
the near term of GBP 8 mn. This valuation does not incorporate growth opportunities as the
Company expands into Poland and other countries.
Source: Symfonie Capital estimates, based on business plan targets.. DCF assumes r=30%. PE 15 assumes 15x earnings multiple.
Company Value Over Time
-
10
20
30
40
1 2 3 4 5 6 7
Year of Operations
G
B
P

m
n
DCF PE 15 Capital Invested
Growth Opportunities
SME lending in the Czech Republic
Build on success in the Czech Republic to enter Poland and other Central/East European markets
Tie to Angel Fund means add-on equity funding platform
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Source: Symfonie Capital forecasts.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 11 11
Peer to Peer Lending Concept
Evaluates borrowers and assigns a risk
score
Approves or rejects borrowers
Verifies borrower data
Posts borrower demand to website
Matches lenders and borrowers
Payment processing and loan servicing
Peer to peer lending uses internet technology to create a marketplace of
borrowers and lenders.
Lenders earn higher rates
of interest than they could
earn on bank deposits.
Lenders can diversify
across many borrowers.
The concept works for
consumer loans and
business loans.
Borrowers save money
by borrowing at rates
less than what they
would pay to banks and
finance companies.
Lenders /Investors P2P Internet Service Borrowers
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 12 12
Intermediation Contractual Structure
Intermediation contract with
borrower and lender
Loan servicing contract with
lenders
Power of attorney to restructure
loans under certain conditions
Take-over of loans in default
for more than certain period of
time
Processing payments among
lenders and borrowers
Implementation of legal loan
recovery process
Contract on intermediation
signed with P2P provider
Loan servicing agreement with
P2P service provider
Structured notes with terms
passing through interest and
credit risk of the underlying
loan
Intermediation contract with
P2P provider
Loan agreement.
Lenders /Investors P2P Internet Service Borrowers
A Region with Relatively Low Government Debt
Source: EU statistics database, Symfonie Capital estimates.
Government Debt / GDP
0
30
60
90
120
150
180
G
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Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Relatively Low Private Debt Stock
Private Sector Debt / GDP
0
50
100
150
200
250
300
350
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Source: EU statistics database, Symfonie Capital estimates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Convergence Continues
Czech Republic offers relatively strong growth and a generally healthier consumer than most other
peer countries in new Europe.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
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2003 2012
Source: EU statistics database, Symfonie Capital estimates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Convergence Continues
In Central and Eastern Europe consumer loans/capita is about 35%of the figure in Western Europe
Source: EU statistics database, Symfonie Capital estimates.
0
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1000
1500
2000
2500
3000
3500
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2003 2012
\
Czech Consumer Debt is Relatively Low
Consumer lending in the Czech Republic is relatively low compared to Europe generally
Source: EU statistics database, Symfonie Capital estimates.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
E
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2
7
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7
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(
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2003 2012
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Czech Republic is Strategically Well Located
The Czech Republic offers a EURO 8 bn consumer finance market and borders on Poland, the
regions largest market
Source: EU statistics database, Symfonie Capital estimates.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
P
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2003 2012
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 19
Bank Consumer Lending EUR 7.2 Bn Outstanding
Volume of consumer
loans at banks is
EUR 7.2 bn
Net consumer loan
growth at banks has
been practically
stagnant last several
years.
Czech Consumer Loans Issued by Banks
Source: Czech National Bank, Symfonie Capital estimates. CZK translated into EUR at constant rates.
7.2
7.2
7.3
6.8
6.2
5.1
4.0
3.3
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2005 2006 2007 2008 2009 2010 2011 2012
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 20
Non-Bank Consumer Lending EUR 1.3 bn annually
Czech Consumer Loans Issued by Non-Banks EUR bn
931,752 contracts in
2012
loans taken in 2012:
EUR 1.3 bn
2 mn active contracts:
EUR 2.2 bn
374,300 contracts in
2012 for personal loans:
EUR 400 mn
204,470 revolving loans:
in 2012 EUR 455 mn
352,031 point of sale
loans in 2012: EUR 386
mn
Source: Czech Leasing and Finance Association (www.clfa.cz). CZK translated into EUR at constant rates.
1.3
1.4
1.5
2.0
1.8
1.3
1.2
0.9
1.3
-
0.5
1.0
1.5
2.0
2.5
2004 2005 2006 2007 2008 2009 2010 2011 2012
Polish Consumer Loans EUR 30 bn Outstanding
Polish Consumer Loans
31.5 31.9
31.0
29.4
-
10.0
20.0
30.0
40.0
2009 2010 2011 2012
E
U
R

B
n
Source: National Bank of Poland and Symfonie Capital Estimates. PLN translated into EUR at constant rates.
Bank Loans to Czech Businesses EUR 5.7 bn
Source: Czech National Bank, Symfonie Capital estimates. CZK translated into EUR at constant rates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Czech Business Loans 1-5 Years
6.2
6.5
5.9
5.6
4.9
4.2
3.7
3.7
5.4
5.8
5.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CAGR 9.6% p.a.
Non-banking Sector Loans to Czech Businesses EUR 1.2 bn
Source: Czech Leasing and Finance Association (www.clfa.cz). CZK translated into EUR at constant rates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Non-Banking Sector Loans to Czech Businesses
0.94
0.69
0.44
0.21
0.15
0.14
0.08 0.07
0.99
1.00
1.12
1.21
0.0
0.5
1.0
1.5
2.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
E
U
R

b
n
Lending to Polish SME Sector - EUR 40 bn
Source: National Bank of Poland and Symfonie Capital estimates. PLN translated into EUR at constant rates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
39.3
37.9
30.2
30.3
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10.0
20.0
30.0
40.0
2009 2010 2011 2012
E
U
R

B
n
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 25
Interest Rates Provide Opportunity for P2P
0
2
4
6
8
10
12
14
16
2005 2006 2007 2008 2009 2010 2011 2012
R
a
t
e
s

(
%
)
Consumer Loan Rates Deposit Rates
r
Czech bank rates on consumer loans are about 14% while deposit rates are less
than 2%.
Source: Czech National Bank, Symfonie Capital estimates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 26
Interest Rates Provide Opportunity for P2P
Polish deposit rates are less than 5% while base consumer lending rates
are more than 15%
Source: National Bank of Poland, Symfonie Capital estimates.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2009 2010 2011 2012
R
a
t
e
s

(
%
)
Consumer Loan Rates Deposit Rates Consumer RSPN (%)
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 27
Why Borrow????
Source: CLFA - www.clfa.cz, Czech National Bank www.cnb.cz, National Bank of Poland and Symfonie Capital estimates. CZK and PLN translated into
EUR at constant rates.
Non-banking - about 33% are for used cars.
Non-banking - about 33% are revolving loans
Non-banking - about 33% general consumer purchases
Non-banking average loan size is about EUR 1,500
Banking about 20% is revolving credit
Banking about 75% is for consumer purchases
Used car market in Czech Republic is about EUR 550 mn annually and about EUR 3 bn annually in
Poland
Leading Non-bank Consumer Finance Companies Outanding Loans (EUR bn)
CETELEM R, a.s. 0.38
Home Credit, a.s. 0.32
Provident Financial s.r.o. 0.17
ESSOX, s.r.o. 0.13
koFIN s.r.o. 0.05
s Autoleasing, a.s. 0.04
GE Money Auto, s.r.o. 0.04
UniCredit Leasing CZ 0.04
1.17
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 28
Whats the Problem????
Loan rates, especially non-bank loans, are 10-20%
Smaller loans and shorter term loans are much more expensive than bigger loans
and longer term loans.
Revolving charge cards are expensive 20% and higher
Consumer loan pricing is not always transparent non-interest charges increase loan
cost substantially
Many consumer lenders charge clients for early repayment usually about 1% of the
outstanding amount of the loan
Many consumer lenders charge a monthly account fee in addition to the interest rate
The window of opportunity is to identify credit worthy clients who are paying high
interest rates and re-finance them at same or lower rates with consumer-friendly
terms, policies and procedures.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 29
P2P Loan Pricing
Base interest rate based on credit risk score each borrower is assigned a
base interest rate.
Borrowers who continually meet the payment schedule can be credited back
interest as a reduction in principal. Late payments are charged over-due
fees.
Each borrower carries payment protection insurance. P2P provider earns a
commission on the payment protection insurance.
A margin is added to the base and is the fee earned by the P2P loan
intermediator.
Few lenders offer interest look backs, step-down interest,
no-prepayment penalties, flexible credit policies. We can
compete by offering borrowers an interesting alternative
to classical loans.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 30
Small Loans Present Big Pricing Opportunity
Lenders Charge More for Small Loans Than for Large Loans
Source: Symfonie Capital research and estimates.
0
10
20
30
40
50
60
-
2
,
0
0
0
4
,
0
0
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6
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Loan Term Impacts Pricing
Lenders Generally Offer Lower Rates for Longer Term Loans
Source: Symfonie Capital research and estimates.
0
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40
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60
70
06
1
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1
8
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4
Term of Loan (Months)
R
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Credit Insurance Adds to the Cost
Account Fees and Credit Protection Insurance 2-12% to Loan Cost Annually
Source: Symfonie Capital research and estimates.
0
2
4
6
8
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12
14
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Total Cost Ranges from 10% - 60%
Source: Symfonie Capital research and estimates.
0
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30
40
50
60
70
-
2
,
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0
3
0
,
0
0
0
Si ze of Loan (EUR)
R
P
S
N

(
%
)
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 34
Credit Protection Insurance
Credit Protection Insurance - The Cost of Safety
Source: Symfonie Capital research and estimates. Data from Czech lenders.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%

3
6
8


2
,
2
0
6


4
,
0
4
4


5
,
8
8
2


7
,
7
2
1


9
,
5
5
9


1
1
,
3
9
7


1
3
,
2
3
5


1
5
,
0
7
4


1
6
,
9
1
2

Loan Size - EUR
I
n
s
u
r
a
n
c
e

C
o
s
t

(
%

o
f

L
o
a
n
)
CS Cetelem Low Cetelem High GE Low GE High
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 35
Competitive Edge Opportunities to Get Market Share
Lower costs - pass cost savings on to the borrowers
Knowing the client better - understand the borrowers to keep default rates low
Data gathering - gather data on customers so and tailor products to meet their needs
Size doesnt matter Develop a lending model that doesnt automatically impose higher base
interest rates on smaller size loans
Flexible - we allow borrowers to easily shorten or lengthen loan tenor
Proactive credit management - work with clients to help them manage credit problems before
they turn into defaults
Choice of flat or declining payment - offer loans with declining monthly payment as an
alternative to the traditional flat payment structure
Payment holidays - build one or two months per year into the payment calendar where no
payment is due
Rising payment loans - offer loans that have smaller payments on the front end and larger
payments on the back end.
Look-back rewards - reward consistent payers with cash-back, credit toward principal balance,
step-down interest rates
Cross selling - cross sell customers into other financial products besides lending and borrowing
Source: Symfonie Capital. The above list is indicative and does not necessarily reflect final product features, terms and conditions.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 36
The Symfonie Advantage
COMPETITOR BASE OFFER
Loan amount EUR 2,574 Interest 17.2% Monthly Payment EUR 51
Total Payments - EUR 4,320 and after cash-back for 100% on-time payments, EUR 3,600 EUR 720
savings
SYMFONIE BASE OFFER
Loan amount EUR 2,574 Interest 17.2%
Monthly Payment Starts at EUR 68, declines each month.last payment is just EUR 19.
Total Payments - EUR 4,141
Borrower saves nearly EUR 180 vs. Competitor base offer.
SYMFONIE REWARDS PROGRAM
Loan amount EUR 2,574 Interest 17.2%, declines by 100 bp per year
Monthly Payment Starts at EUR 68 declines each month.
After each 12 monthly on-time payments, 1/3 of the interest is credited back to borrower, reducing the
outstanding principal balance
Total Payments - EUR 3,491
Borrower saves nearly EUR 830 AND reduces payment time to 72
months.
Source: Symfonie Capital. The above list is indicative and does not necessarily reflect final product features, terms and conditions.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 37
Non-bank Competitors Loans Originated 2012
Cetelem wide product offering, easy repayment options, competitive pricing on payment insurance.
RPSN ranges from 11% for larger loans to 19.8% for smaller loans. Growing network of retail distribution
partners. Advertised on-line pre-approval in a few minutes.
Home Credit relatively expensive lender, no offer on payment insurance. RPSN for smaller sized,
shorter tenor loans as high as 46%. RPSN on longer tenor and larger terms as little as 11%. Wide point-
of-sale network. No on-line application.
Provident loans 45 - 100 days. Quick approval. 50% interest rate. Mainly for consumers who cant get
credit and are high risk of default. EUR 150 EUR 3,000. More than 10% of non-bank loans are via
Provident.
Symfonie business model looks to develop about EUR 73 mn in annual loan originations in the
Czech Republic by year 5, which is about 6% of the current annual tally of personal loans within
the non-bank sector and less than 1% of the annual figure for the banking sector.
Source: Czech Leasing & Finance Association www.clfa.cz). CZK translated in to EUR at constnat rates.
CETELEM R, a.s. 0.38
Home Credit, a.s. 0.32
Provident Financial s.r.o. 0.17
ESSOX, s.r.o. 0.13
koFIN s.r.o. 0.05
s Autoleasing, a.s. 0.04
GE Money Auto, s.r.o. 0.04
UniCredit Leasing CZ 0.04
1.17
Leading Non-bank Consumer Finance Companies Outanding Loans (EUR bn)
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 38
Credit Model Framework
Credit score driven by disposable income vs. monthly payment
The higher the score, the lower the base interest, irrespective of amount client wants to
borrow
Source: Symfone Capital. Credit model is illustrative only and does not necessarily reflect the actual credit model employed.
2 3 4 6 8 10
368 0 0 0 0 0 0
551 0 0 0.46 0.64 0. 73 0.83
735 0.2 0.45 0.6 0.75 0. 85 0.9
919 0.28 0.55 0.69 0.83 0. 89 0.93
1,103 0.31 0.58 0.71 0.84 0. 92 0.94
1,287 0.36 0.59 0.78 0.87 0. 92 0.95
1,471 0.39 0.64 0.78 0.87 0. 92 0.96
1,654 0.41 0.64 0.76 0.89 0. 93 0.96
1,838 0.43 0.66 0.76 0.87 0. 93 0.97
2,022 0.44 0.69 0.77 0.88 0. 93 0.97
2,206 0.45 0.69 0.78 0.88 0. 94 0.97
2,390 0.47 0.69 0.78 0.88 0. 96 0.97
2,574 0.47 0.69 0.78 0.9 0. 94 0.97
2,757 0.48 0.68 0.79 0.9 0. 94 0.98
2,941 0.48 0.68 0.79 0.91 0. 95 0.98
3,125 0.48 0.68 0.79 0.91 0. 95 0.98
DISPOSABLE I NCOME/MONTHLY PAYMENT
D
I
S
P
O
S
A
B
L
E

I
N
C
O
M
E

(
E
U
R
)
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 39
P2P Companies - Sources of Lenders
Own Equity Well capitalised P2P companies may use some of their own
capital in order to fill gaps between arrival of borrowers and lenders to the site.
Family Offices Symfonie believe appetite among family office for relatively
secure high yield product is strong. P2P providers with robust operations should
enjoy good access to this sector of the lending market.
Alternative Investment Funds Hedge funds represent about EUR 1.5 trillion in
assets, of which about 10% or EUR 150 bn is invested in credit markets.
People Symfonie expect ample supply of lending capital from the retail market.
Bank deposit rates are less than 2%. Household bank deposits in Czech
Republic are EUR 80 billion and growing. Household investments in capital
markets are EUR 40 bn.
Borrowings P2P companies borrow to ensure growing demand for loans can
be met.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 40
Czech Savings and Investment Base
Source: Czech National Bank, Symfonie Capital research and estimates. CZK translated into EUR at constnat rates.
48
53
61
68
71
75
78
80
32
32
35
34
35
35
37
39
-
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010 2011 2012
E
U
R

B
n
Bank Deposits Securities & Mutual Funds
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 41
Polish Savings and Investment
Source: National Bank of Poland, Symfonie Capital research and estimates. PLN translated into EUR at constant rates.
92.3
100.6
113.7
122.9
24.8
28.6
27.4
35.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2009 2010 2011 2012
E
U
R

B
n
Bank Deposits Mutual Funds
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 42
Non-Performing Loans
Household Loans - Non-Performing
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2005 2006 2007 2008 2009 2010 2011 2012
r
Bank non-performing
loans to households have
risen to around 6%.
Among unsecured
consumer loans the non-
performing rate is
probably closer to 8%.
Home Credit recently
reported about 8.5%.
CNB bank lending survey
recently indicated banks
charge on average 17%
on their relatively risky
loans.
Mortgage loans are
typically categorized as
low risk due to
collateralization..
Source: Czech National Bank and Symfonie Capital estimates.
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 43
Czech Operation Revenue Targets
The current plan targets issuance of about EUR 4 mn of loans in the first 12 months following launch, rising to an
annual volume of EUR 80 mn by the 5
th
year of operation.
The revenue model assumes an average loan tenor 3 years and an average loan size EUR 2,000
Origination fees are expected to average 3% of loan, collected up front. A loan servicing fee of 2% of the monthly
payment amount, collected over tenor of the loan is expected. Additional fees can come from the sale of payment
protection insurance, which reduces loan default risk and benefits borrowers and lenders
The revenue target implies about 4% of the consumer loan market by year 5
Source: Symfonie Capital, There is no assurance the targets will actually be achieved. Actual performance may differ depending on market conditions and product terms and
conditions. Revenue model is subject to change.
Revenue & Net Profit Model
-2
0
2
4
6
8
10
1 2 3 4 5 6 7
Year of Operations
E
U
R

m
n
Net Profits Revenues
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 44
Expense Model
Operating staff, management and marketing are the largest cost items, accounting for nearly 80% of the
expense budget. The Company plans to keep marketing costs contained during the first 12 18 months after
start of operations while it ensures quality control and makes initial product adjustments.
Source: Symfonie Capital. The cost model presented is indicative and subject to change without notice. Actual results may differ.
ExpensesYear3
Credi tcheckfee
Offi ceRent
Offi ceSuppl i es
ITSystems
Busi nessadmi n&
anal ysi scompensati on
Management
compensati on
Communi cati on
Supervi soryBoard
Accounti ng
Legal
Travel
Marketi ng
Credi tstaff
compensati on
Operating Staff vs. Volumes
Operating staff includes customer service/sales, loan origination, loan administration
Operating principles include classical banking and financial services control procedures
Staffing plans were derived from analysis of planned processes and are generally consistent
with what we have observed at other P2P and financial services providers
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Source: Symfonie Capital. Actual results may differ from forecasts.
Operating Staff vs. Volume
-
20.0
40.0
60.0
80.0
100.0
1 2 3 4 5 6 7
Year of Operations
D
e
a
l
s

(
0
0
0
)

&

S
t
a
f
f
Deals Done (thousand) Customer Service & Loan Admin Staff
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 46
Incentivising Management & Employees
Management and employees earn ownership in the Company.
Management and employ ownership consists of options to buy shares in the
Company, vested over time and with cash payments in exchange for the shares.
Vesting begins after 18 months of service and take place over an 18 month period.
Managers therefore must work for 36 months in order to become fully vested.
Management buy-in is 23% of the Company on a fully diluted basis.
Management and employees also have an incentive programme and can earn
options to buy shares in the Company. The incentive programme begins after
three years and is vested over a two year period, so management must stay with
the Company for five years in order to be fully vested.
Management Incentive Plan
Option Plan for Year 4 Earnings
0%
2%
4%
6%
8%
10%
12%
14%

8
5
,
9
8
5


1
7
1
,
9
6
9


2
5
7
,
9
5
4


3
4
3
,
9
3
8


4
2
9
,
9
2
3


5
1
5
,
9
0
7


6
0
1
,
8
9
2


6
8
7
,
8
7
6


7
7
3
,
8
6
1


8
5
9
,
8
4
5

Year 4 Earnings (EUR)
%

o
f

C
o
m
p
a
n
y

E
a
r
n
e
d
Option Plan for Year 5 Earnings
0%
2%
4%
6%
8%
10%
12%
14%

1
4
9
,
5
4
6


2
9
9
,
0
9
2


4
4
8
,
6
3
8


5
9
8
,
1
8
3


7
4
7
,
7
2
9


8
9
7
,
2
7
5


1
,
0
4
6
,
8
2
1


1
,
1
9
6
,
3
6
7


1
,
3
4
5
,
9
1
3


1
,
4
9
5
,
4
5
9

Year 5 Earnings (EUR)
%

o
f

C
o
m
p
a
n
y

E
a
r
n
e
d
Management earns options on company equity depending on profits produced in year 4 and 5
Option plan is subject to adjustment by the Companys directors and approval by shareholders
Symfonie P2P - Michael Sonenshine CEO
Michael Sonenshine, CFA Investment Principal
Mr. Sonenshine More than 20 years of experience in banking and investment management. He
specialises in credit investments. He founded the Symfonie group of companies in 2012.
MT Thaler, Prague/London: CEO/Partner, Head of Research. Investment funds focused on central
and eastern Europe and pan-European credit markets
CSFB, London: European High Yield Debt Research
ING Bank, London: European High Yield Debt Research
ING Investment Management, Prague: CEO, Czech Republic
ING Bank, London: Analyst
Driehaus Capital, Prague: Analyst
Evrobank, Prague: Advisor
MBA William Simon School, University of Rochester
B.A., Tufts University
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 49
Symfonie P2P - Peter McGregor - Chief Operating Officer
Mr McGregor oversees all administrative and operational issues for Symfonie in the
P2P arena.
More than 25 years experience in banking and operations management
Banco Nacional de Guinea Ecuatorial Chief Operations Officer
MT Thaler Investment Management, Chief Operations Officer.
ING Bank, Monaco, Budapest, Prague Wholesale banking and wealth management
operations
ABN AMRO, Geneva private banking operations and product management
PhD, Computer Science, Oxford University, England
BSc (Hons) in Mathematics, Witwatersrand, Johannesburg, South Africa
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 50
Symfonie P2P Stepan Alexa - Chief Technology Officer
Mr. Alexa is responsible for the architecture and implementation of the companys IT
solutions.
More than 15 years professional experience in systems development
Implemented database systems in Central and Eastern Europe for T-Mobile,
Vodafone and MTS Russia
Sales Director, Oracle, Central and East Europe
MSc, Economics and Computer Science, Prague College of Economics
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 51
Symfonie P2P Jitka Rombova - Chief Financial Officer
Ms. Rombova is responsible for overseeing and monitoring the companys finance.
More than 20 years professional experience in managerial finance and business
development
Partner, CQK Invest, providing financial and business support to innovative startup
companies
10 years experience in senior management positions in HBO Europe, promoted to
CFO
MBA, University of Pittsburgh, Diploma, University of Chemical Technology, Prague
Symfonie Advisory Board
The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has regular
meetings with the Advisory Board to discuss the Funds investments, strategy, research on P2P providers. Advisory
Board members are independent of Symfonie and do not have legal or regulatory authority or status within Symfonie.
Willem Naves
Holland
More than 25 years of experience in investment and corporate banking.
Banking advisory projects in Macedonia, Poland, El Salvador and Indonesia
Twenty years experience in credit trading management positions in the ING Group, working in Amsterdam, London and Sao
Paolo
Erasmus University degree in Law
Pavel Kohout
Czech Republic
Fifteen years experience in economic analysis and investment management
Director of Strategy at Partners Advisors, a leading Czech financial advisory firm
Author of several books on economics
Member of Czech National Economics Advisory Board
Member, Expert Panel of Advisors to Czech Ministry of Finance
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Appendices
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 54
Symfonie P2P Structure
SymCredit
Czech Republic
Operating
company in the
Czech Republic
Symfonie P2P, LTD
Source: Symfonie Capital. Shareholding structure assumes all Round 1 and Round 2 investors participate via Symfonie Ventures`
Seed investors own Preferred shares
preferential rights to dividends to 10% per
annum notional dividend (when/if declared),
parri-passu with common thereafter.
Convertible to common at any time.
Seed investment EUR 125,000 - CLOSED
Round 1 GBP 600,000 for startup and launch
of operations NOW OPEN
SymCredit
Poland
Operating
company in
Poland
100 % ownership of operating
subsidiaries
Shareholding
Seed & Round 1
32%
Round 2
22%
Management earn-
in
23%
Management
incentive
23%
Indicative shareholding structure, post money, assuming all authorised capital sold and
issued.
Shareholder Value
A win-win for management and shareholders
Based on 1 mn EUR mn invested, shareholders generate 8X multiple over 5 years
Management earn value through buy-in and profit incentives
*Value of investors shares prior to the first year of operations is equal to the cash invested, assuming all shares sold in Round 1 and 2 are common shares.
** Value of management share prior to the first year of operations is equal to the potential total amount of money management pay for shares acquired through the
buy-in and incentive plans. In years 1 to 5 value is based on the full number of shares reserved for the buy-in and incentive plans.
InEUR
PeriodEnd Seed+Round1and2 1 2 3 4 5
FirmValueDCF 5,834, 505 8,272,960 10,897,972 13,673,020 16,915,081
FirmValue15xP/E 5,783,811 12,897,679 22,431,880

Authorisednumberofshares 1, 500,000 1,500, 000 1,500,000 1,500,000 1,500,000 1,500,000
Outstanding 800,000 800, 000 915,500 1,325,000 1,500,000 1,500,000

Sharesissuedtoseedandround1and2investors 800,000 800, 000 800,000 800,000 800,000 800,000
Sharesissuedtomanagement 115,500 525,000 700,000 700,000
Sharesreservedformanagementearnin 350,000 350, 000 234,500
Sharesreservedformanagementincentive 350,000 350, 000 350,000 175,000
Round1pricepercommonshare 1.7
DCFPershareoutstanding 7.3 8.5 9.5 9.1 11
DCFpersharefullydil uted 3.9 5.5 7.3 9.1 11

15xP/Eshareoutstandi ng 5.0 8.6 15.0
15xP/Eful lydiluted 3.9 8.6 15.0

Totalvalueofinvestors'shares* 1,069, 813 3,111,736 4,412,245 5,812,252 7,292,278 9, 021,377
Totalvalueofmanagement'sshares** 167, 794 2,722,769 3,860,715 5,085,720 6,380,743 7, 893,705
Fullydilutedshares 1, 500,000 1,500, 000 1,500,000 1,500,000 1,500,000 1,500,000
Key Corporate Governance Provisions
New issuance of capital must be approved by at least 75% of outstanding shares.
The business may not incur debt totaling more than 20% of share capital without at
least 65% approval of outstanding shares.
The business must payout at least 50% of net earnings as dividends unless at
least 75% of shareholders approve otherwise.
Drag provision to incorporated into the statutes. If at least 85% of shareholders
agree to sell their shares the other 15% are bound.
Tag provision all shareholders are entitled to participate pro rata in any offer to buy
secondary shares.
Key Risks
Underperformance - If the business plan is underperforming more capital will be needed. In
this case the shareholders will decide whether to authorise additional capital or decrease
management incentive pool.
Competition other P2P operators may enter the markets faster than we do.
Finance the business is likely to need additional capital to expand into other markets.
There is no guarantee capital will be readily available on favourable terms and conditions.
Exit strategy there is no guarantee the business or the shares will be readily marketable
when and exit is desired.
Legislation adverse legislation may prevent the business from developing or may prohibit
the business entirely
New operations all procedures, policies and systems will be new, untried and untested.
Revenue Model
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
EUR
YearofOperations
ModelDrivers Y1 Y2 Y3 Y4 Y5 Y6 Y7
DealsClosed 2,660 10,620 23,400 36,300 49,200 63,600 78,000
Loansvalueoriginated 4,889,706 19,522,059 43,014,706 66,727,941 90,441,176 116,911,765 143,382,353
YearEndOutstandingLoans 4,485,091 20,310,859 50,387,882 87,048,352 125,537,004 166,210,778 208,631,628
TotalYearEndHeadcount 8 14 25 34 46 57 70
Revenues Y1 Y2 Y3 Y4 Y5 Y6 Y7
OriginationFees 146,691 585,662 1,290,441 2,001,838 2,713,235 2,713,235 3,507,353
LoanServicingFees 10,700 95,283 324,760 735,846 1,248,028 1,812,894 2,390,441
PPIFees 5,350 47,642 162,380 367,923 624,014 906,447 1,195,221
TotalRevenues 162,742 728,586 1,777,581 3,105,607 4,585,278 6,226,694 7,887,132
Cost Model
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
Note Cost model excludes startup costs of EUR 400,000 for purchase of software and
establishment of company procedures and processes.
InEUR
Expenses Y1 Y2 Y3 Y4 Y5 Y6 Y7
Creditstaffcompensation 76,310 167,902 409,063 699,288 1,015,984 1,394,565 1,793,836
Businessadmin&analysiscompens 111,673 115,023 118,474 122,028 153,620 163,982 174,828
Managementcompensation 134,007 138,028 142,168 297,794 306,728 315,930 325,408
TotalCompensation 321,990 420,952 669,705 1,119,110 1,476,331 1,874,477 2,294,071
Creditcheckfee 18,336 75,404 171,129 273,433 381,721 508,248 642,023
OfficeRent 15,882 22,664 42,826 65,082 91,427 121,021 152,308
OfficeSupplies 1,489 4,881 10,754 16,682 22,610 29,228 35,846
Communication 6,618 9,429 17,844 27,358 38,234 50,441 63,741
ITSystems 42,647 31,412 42,986 47,412 46,333 44,722 59,926
Marketing 110,294 275,735 295,823 421,030 577,237 747,988 899,015
Travel 4,963 5,112 5,265 5,423 5,586 5,754 5,926
Legal 27,574 12,868 13,254 13,651 14,061 14,483 14,917
Accounting 3,676 3,787 3,900 4,017 4,138 4,262 4,390
SupervisoryBoard 9,191 9,467 9,751 10,043 10,345 10,655 10,975
TotalOtherExpenses 240,671 450,758 613,533 884,132 1,191,692 1,536,801 1,889,066
TotalExpenses 562,661 871,710 1,283,238 2,003,242 2,668,023 3,411,278 4,183,137
Profit Development
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC
NetIncome Y1 Y2 Y3 Y4 Y5 Y6 Y7
EBITDA 399,919 143,124 494,343 1,102,366 1,917,255 2,815,416 3,703,995
Corporatetax 87,982 31,487 108,755 242,520 421,796 619,392 814,879
Netprofit 311,937 111,636 385,587 859,845 1,495,459 2,196,024 2,889,116
Private and conditional. Unauthorised distribution strictly prohibited. 2013 Symfonie Capital LLC 62
Disclaimer
This document has been prepared by Symfonie Capital Investment Management LLC (Symfonie Capital) for persons reasonably
believed by Symfonie Capital to be persons of the categories to whom Symfonie Capital are permitted to communicate financial
promotions. This document does not constitute or form part of any offer or invitation to sell, or the solicitation of an offer to subscribe or
purchase any investment. Symfonie Capital believes that the information it provides is accurate as at the date of publication, but no
warranty of its accuracy or completeness is given and no liability in respect of errors or omissions is accepted by Symfonie Capital or
any partner or employee of Symfonie Capital. Past performance is not necessarily a guide to future performance.
This presentation is for illustration and discussion purposes only and is not intended to be, neither should it be construed or used as,
financial, legal, tax or investment advice nor an offer to sell, nor a solicitation of any offer to buy, an interest in any of the funds
managed by Symfonie Capital (the Funds). None of the Funds have shares registered under the U.S. Securities Act of 1933, as
amended.
This presentation is as of the date indicated and subject to change without notice.
Any indications of interest from prospective investors in response to this material involves no obligation or commitment of any kind.
Subscriptions can be made only on the basis of a Confidential Offering Memorandum to qualified investors. The investment objectives
and methods summarized in this document represent our current focus and intentions.
There is no assurance that Symfonie Capital or the Company will achieve its objectives. Investors may lose money upto the full value of
their investments. No representation is made that the Company will achieve its objectives or that any investor will or is likely to achieve
results comparable to any that may be shown. There can be no assurance that any investor will make any profit at all or will be able to
avoid incurring substantial losses. Past performance is no guarantee of future results.
This presentation does not take into account the particular investment objectives or financial circumstances of any specific person who
may receive it. Before making any investment, you should thoroughly review the the Companys Confidential Offering Memorandum
with your financial and tax advisor to determine whether an investment in the Company is suitable for you in light of your financial
situation.
This presentation is subject to revision and updating. Certain information has been provided by third-party sources and, although
believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. This
presentation is confidential, is intended only for the person to whom it has been delivered and under no circumstance may a copy be
shown, copied, transmitted, or otherwise given to any person other than the authorized recipient. Symfonie Capital is solely responsible
for the content herein.