EUR 46 million record EBITDA - Resilient to turbulences and strong foundation for 2021

OPERATIONAL AND STRATEGIC HIGHLIGHTS

• Continued strong performance in Mogo markets on pandemic recovery; no impact from second Covid-19 wave
• Successful divestment of the North Macedonia operations previously being on hold since beginning of the pandemic
• Stable issuance balance in Q4 q-o-q despite stricter restrictions; share of productive lending to self-employed businesses continues to grow
• Portfolio quality further improved driven by effective debt collection processes stricter underwriting policies in the past nine months
• Continued investments in and developments of proprietary technology further strengthened automated debt collection and underwriting processes
• Consumer lending business with rising earnings contribution
• Admin expenses increased by 12.3% to EUR 34.6 million (12M 2019: EUR 30.8 million) particularly due to an acquisition of consumer lending companies; admin expenses adjusted for acquisitions remained at the previous year's level

FINANCIAL HIGHLIGHTS AND PROGRESS

• Revenue up 24.0% to EUR 99.2 million (12M 2019: EUR 80.0 million)
• EBITDA up 45.4% to an all-time high EUR 45.8 million (12M 2019: EUR 31.5 million) driven by leaner structure and focus on most profitable markets; Q4 was the second consecutive quarter with a record EBITDA
• Net profit before FX increased to EUR 15.5 million (12M 2019: EUR 6.3 million) supported by revenue growth as well as control over portfolio quality
• Increase in total equity by 22.9% to EUR 35.4 million (31 December 2019: EUR 28.8 million) attributable to successful business results as well as shareholders equity contribution during Q1 2020
• Eurobond covenants with continuously good headroom

Modestas Sudnius, CEO of Mogo Finance, commented:

“Despite the challenges posed by Covid-19, Mogo Finance ended its fiscal 2020 on a strong note, recording record revenues, record EBITDA two quarters in a row, and excellent portfolio quality. Results were driven by effective capital allocation, with a profound focus on mature markets yielding highest returns, markets and products with the best unit economics, as well as overall cost optimization. The company made strategic acquisitions that helped to strengthen the Group’s performance. Also, the pandemic required us to further strengthen our debt collection strategies and introduce more flexible schedules. On top of that, we refined our underwriting policy that has performed exceptionally well. And we had our investors by our side. While Eurobond holders voted for greater flexibility in further development, creditors of the two Latvian bonds signaled strong support for refinancing. We have strengthened Mogo Finance’s resilience to turbulences and built a strong foundation for 2021.”

The full unaudited report for the twelve months ended 31 December 2020 is available under https://mogo.finance/investment/results-and-reports/.

Conference Call:A conference call in English with the Group's management team to discuss these results is scheduled for 17 February 2021 at 15:00 CET.

Please register http://emea.directeventreg.com/registration/7928336

Contact:

Mogo Finance

Maris Kreics, Chief Financial Officer (CFO)

Email: maris.kreics@mogofinance.com

About Mogo Finance:

Mogo Finance Group, keeping car lending business as predominant, also utilizes consumer lending in selective markets as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across 14 countries. Up to date the Company has issued over EUR 650 million secured loans and is running a net loan and used car rent portfolio of over EUR 202 million. Mogo offers secured loans up to EUR 15,000 with a maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace unmatched by its rivals. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Physical footprint enriched with excellent customer journey makes Mogo Finance top of mind brand in its industry. A state-of-the-art car portal supports cross-selling potential from re-possessed cars to leasing and vice versa. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include Caucasus and Central Asia as well as Eastern Africa.

www.mogofinance.com

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