Mash Group Oyj

Record revenue for the first nine months of 2018, up 167% from Q1-Q3/17. EBIT grew by 186% to EUR 9.5 million and lending volume grew by 161% for the same period. Revenue growing faster than lending volumes in the third quarter and strong growth expected to continue in Q4 2018, according to CEO Hickson.

The first nine months of 2018 showed record growth in revenue, EBIT, lending volume and loan book as Mash continues to execute its growth plan.

Strategic Highlights

• Mash announces launch of EUR 50 million equity issue as well as Europe’s first regulated digital share issue .
• Mash pay later services were launched in Sweden with partner Verifone.
• Mash develops partnership with Nets for ecommerce and point of sale, a leading payment services operator in the Nordic market.

Operational Highlights

• The number of new customers grew by 229% Q1-Q3/18 compared to Q1-Q3/17.
• Registered merchants for Mash’s pay later point of sale solution grew 1054% year to date.
• The Mash Net Promoter Score reached 82, underscoring the groups commitment to wow customers one transaction at a time.

Financial Highlights

• Revenue grew by 167% year-on-year for Q1-Q3/18 compared to Q1-Q3/17, and 131% for Q3/18 compared to Q3/17,  EBIT grew by 186% and 309%, correspondingly, to EUR 9.5 million (Q1-Q3/18) and EUR 4.0 million (Q3/18).
• Lending volumes for the first nine months of 2018 were 161% higher than for the corresponding period in 2017, growing 145% in Q3/18 compared to Q3/17.
• The Group’s solidity remains strong, with equity increasing by 59% in 2018,  maintaining a strong equity ratio at 26%, while the total loan portfolio increased by 88%.
• Total assets grew by 76% in 2018 and 93% year-on-year to EUR 232 million.

Values based on pro-forma consolidated figures. For equivalent FAS values see below.

James Hickson, CEO of Mash Group is pleased with the Group’s performance so far in 2018: “Our strong momentum has continued thanks to the commitment of our team and partners. We saw our revenue continue to grow as planned despite seasonality, growing 131% compared to the same period in 2017. We continue to see the positive impact of our decision to move to interest-based pricing, with our revenue growing faster than our lending volumes in the third quarter”, said Group CEO James Hickson. “This demonstrates the strong competitive position of our lending business model. We anticipate this strong growth to continue in Q4 2018, supported by our new customer acquisition channels and launch of our TV campaign marketing our Mash Pay Later solution.”

“We are also very pleased with our continued focus and investment on in-store pay-later solutions, having grown our merchant base significantly this year by over 1000%.  In Finland, payment channels generated 71% of our new customer base year to date with more customers choosing to convert to credit that anticipated in our business plan, underscoring the validity of our strategic decision. We continue to make investments for the long term in this acquisition channel and explore new opportunities to enhance our capability, including partnerships with major players like our recently announced deal with Nets . We will continue to make investments for long term growth.”

Tommi Lindfors, Chairman of Mash Group added, “The rapid growth trajectory and financial performance year to date shows the scalability of our business model. The Group set new records not only in terms of business growth and new funding capabilities to support the high growth of our loan portfolio.  The launch of our equity issue will directly support our continued growth with all proceeds going directly to the company.”

The Group confirmed that they will communicate audited fully year 2019 figures in April 2019.

PRO FORMA CONSOLIDATED FIGURES*

BALANCE SHEET (EUR '000)	30.9.2018	31.12.2017		30.9.2017
Intangible assets	43 530	28 291		25 219
Tangible assets	611	17		14
Investments	5 346	0		0
TOTAL NON-CURRENT ASSETS	49 487	28 308		25 233
Current receivables	170 351	90 495		75 772
Cash and Bank Receivables	12 650	13 179		19 312
TOTAL CURRENT ASSETS	183 001	103 674		95 084
TOTAL ASSETS	232 488	131 982	+76%	120 317	+93%
Share capital and issue	93	93		93
Translation difference	-359	96		-219
Reserve for invested non-restricted equity	55 366	33 179		26 458
Retained earnings	4 309	6 730		6 878
Profit for the Financial period	949	-2 092		-1 274
TOTAL EQUITY	60 358	38 006	+59%	31 936	+89%
Non-current Liabilities	89 710	58 514		38 286
Current liabilities	82 420	35 462		50 095
TOTAL LIABILITIES	172 130	93 976		88 381
TOTAL EQUITY & LIABILITIES	232 488	131 982		120 317

INCOME STATEMENT   (EUR '000)	9M/2018	9M/2017
TURNOVER	24 097	11 452	+167%
Other operating income	9	11
Materials and services	-530	-204
Personnel costs	-2 495	-1 476
Depreciation	-3 161	-1 647
Other business-related costs	-8 399	-4 803
EBIT	9 521	3 333	+186%
Financial income and expenses	-8 560	-4 594
EBT	961	-1 261
Tax	-12	-13
Net Profit	949	-1 274



INCOME STATEMENT   (EUR '000)	Q3/2018	Q2/2018		Q3/2017
TURNOVER	9 379	8 485	+11%	4 069	+131%
Other operating income	1	4		0
Materials and services	-203	-173		-103
Personnel costs	-838	-802		-638
Depreciation	-1 242	-1 018		-610
Other business-related costs	-3 085	-3 180		-1 738
EBIT	4 012	3 316	+21%	980	+309%
Financial income and expenses	-3 725	-2 746		-1 685
EBT	287	570		-705
Tax	3	0		0
Net Profit	290	570		-705

* The interim pro-forma consolidated figures and comparison figures have been prepared by consolidating Mash Group figures prepared in compliance with Finnish Accounting Standards ("FAS") and Pausa Capital S.à.r.l. prepared in conformity with Luxembourg legal and regulatory requirements and according to generally accepted accounting principles applicable in Luxembourg ("Lux GAAP"). The following transactions between Mash Group and Pausa Capital S.à.r.l. have been eliminated in the pro-forma consolidated figures:

• Subordinated Notes issued by Pausa Capital S.à.r.l. and held by Mash Group
• Variable interest recognised by Mash Group related to the Subordinated Notes
• Servicing fees from Mash Group to Pausa Capital S.à.r.l., Mash Finance Oyj being the servicer of the funding facility.
• Debt Collection fees charged by Mash Group to Pausa Capital S.à.r.l., Credito Cobro Oy being one of the collection agencies of the funding facility.

Pausa Capital S.à.r.l is a special purpose vehicle supporting the funding facility provided to Mash Group. According to Group Management, the pro-forma consolidated figures that include Pausa Capital S.à.r.l. provide a more comprehensive view of the financial position and performance of Mash Group, compared to FAS consolidated figures, which can be found below. These figures are unaudited. The reader is advised to refer to the 2017 annual review  and financial statements for the latest audited figures and more information about the Group.

Financial Highlights (FAS)

• Revenue grew by 120% year-on-year for Q1-Q3/18 compared to Q1-Q3/17, and 133% for Q3/18 compared to Q3/17, EBIT grew by 306% and 522%, correspondingly, to EUR 6.0 million (Q1-Q3/18) and EUR 2.6 million (Q3/18).
• Lending volumes for the first nine months of 2018 were 161% higher than for the corresponding period in 2017, growing 145% in Q3/18 compared to Q3/17.
• The Group’s solidity remains excellent, with equity increasing by 59% in 2018,  maintaining a strong equity ratio at 36%, while the total loan portfolio increased by 81%.
• Total assets grew by 69% in 2018 and 77% year-on-year to EUR 166 million.

BALANCE SHEET (EUR '000)	30.9.2018	31.12.2017		30.9.2017
Intangible assets	43 530	28 291		25 219
Tangible assets	611	17		14
Investments	5 346	0		0
TOTAL NON-CURRENT ASSETS	49 487	28 308		25 233
Current receivables	110 261	61 015		53 017
Cash and Bank Receivables	5 981	8 556		15 176
TOTAL CURRENT ASSETS	116 242	69 571		68 193
TOTAL ASSETS	165 729	97 879	+69%	93 426	+77%
Share capital and issue	80	80		80
Translation difference	-359	96		-219
Reserve for invested non-restricted equity	55 366	33 179		26 458
Retained earnings	4 309	6 730		6 878
Profit for the Financial period	949	-2 092		-1 274
TOTAL EQUITY	60 345	37 993	+59%	31 923	+89%
Non-current Liabilities	26 895	26 550		13 655
Current liabilities	78 489	33 336		47 848
TOTAL LIABILITIES	105 384	59 886		61 503
TOTAL EQUITY & LIABILITIES	165 729	97 879		93 426

INCOME STATEMENT   (EUR '000)	9M/2018	9M/2017
TURNOVER	19 977	9 086	+120%
Other operating income	9	11
Materials and services	-530	-204
Personnel costs	-2 495	-1 476
Depreciation	-3 161	-1 647
Other business-related costs	-7 788	-4 290
EBIT	6 012	1 480	+306%
Financial income and expenses	-5 054	-2 744
EBT	958	-1 264
Tax	-9	-10
Net Profit	949	-1 274

INCOME STATEMENT   (EUR '000)	Q3/2018	Q2/2018		Q3/2017
TURNOVER	7 730	7 213	+7%	3 323	+133%
Other operating income	1	4		0
Materials and services	-203	-173		-103
Personnel costs	-838	-801		-638
Depreciation	-1 242	-1 018		-610
Other business-related costs	-2 880	-2 936		-1 559
EBIT	2 568	2 289	+12%	413	+522%
Financial income and expenses	-2 280	-1 719		-1 117
EBT	288	570		-704
Tax	2	0		-1
Net Profit	290	570		-705

About Mash

Mash has been at the forefront of fintech innovation since 2007. We leverage our advanced proprietary algorithms, machine learning capabilities, and automated platform to deliver superior finance and payments solutions to thousands of customers every day. We work hard for a future powered by technology, making every transaction seamless, flexible and worry-free. Today, Mash is one of Europe’s leading fintech companies.

Mash.com | press@mash.com | investor@mash.com | @MashComOfficial

For more information please contact:
Jonas Lindholm
Mash Group Plc
Tel +358 10 217 1003
investor@mash.com
press@mash.com

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