NEO Finance AB interim financial information for 2023 Q1

Paskolų Klubas

In Q1 2023, Paskolų Klubas granted loans worth EUR

9.95 million, an increase of 41% compared to Q1 2022. In March, we enjoyed an all-time record of loan applications approved in a single day, with the amount of loans listed for investment reaching EUR 345 660. In the Paskolų Klubas business segment, with the growth of loan volumes, the administered portfolio and the income of this segment, the Company generated a positive EBITDA, which reached EUR 389 thousand in the first quarter of this year. In order to reduce the risk of insolvency of borrowers, we offer them payment insurance solutions, which we continue to improve, automating the processes related to this service.

Neopay

In Q1 2023, the volume of payment initiation services with Neopay customers completing almost 6.5 million transactions, an increase of 41% compared to Q1 2022, when 4.7 million transactions were completed. In March, we achieved another solid record: we initiated 2.43 million transactions in a month. Most transactions were initiated from Swedbank and SEB banks. Although the majority of transactions are generated in the markets of Lithuania and Latvia, the number of customers and transactions in other foreign markets, especially in Estonia and Poland, is gradually increasing. In February, the Neopay team participated in the largest telecommunications exhibition, Mobile World congress, during which we increased the awareness of the Neopay brand and found new business partners. In February, we launched two new products: Neopay PayForYou (POS Lending) and Neopay 3 (Buy Now, Pay Later). We actively carried out the communication of these new services in the target segment of the Lithuanian market and signed the first contracts with e-shops. In order to gain a stronger foothold in the Polish market, we concluded a cooperation agreement with one of the largest international banks operating in Poland and completed the integration with one of the largest payment service providers in the country. In the near future, we plan to strengthen the sales team in the Polish market. In the open banking business segment, we not only earned record quarterly revenues, of EUR 287,307 thousand in the Q1 of the year, but also recorded a six-digit EBITDA value, while maintaining a rapid growth in the number of transactions.

FinoMark

The crowdfunding platform FinoMark mediated the issuance of business loans for 1.5 million EUR in Q1 2023, compared to EUR 0.5 million in Q1 2022. The company's income reached EUR 773 thousand in Q1 2023 compared to EUR 35 thousand in Q1 2022. As Finomark UAB is still in a start-up phase, the positive EBITDA and pre-tax profit figures of EUR -27 thousand and EUR -41 thousand respectively have not yet been achieved this quarter.

We can be pleased that the team is performing well and this is reflected in the results. Sales revenue and loan portfolio

grew steadily every quarter, and the platform continues to be improved, with the introduction of new functionalities, keeping the company's cost consumption optimal. We take the necessary steps to attract larger new investors and maintain close relations with existing and new smaller investors. For individuals and legal entities, who can also invest through the platform, we disclose as much targeted project information as possible, so that investors can choose the projects that best suit their needs. Today's challenge is to attract larger and institutional investors to invest larger sums through the platform, which is why we are open to various forms of cooperation that would allow us to grow faster. We are actively working on borrower administration with the aim of continuing to maintain the level of overdue loans of around 5-6%, based on the volume of issues.