Multitude AG (0R4W) Earnings Call Transcript & Summary

Welcome to Multitude Group's Capital Markets Day 2023. It's our third CMD in our 18-year journey, and we are excited to share our latest developments with you. I'm Lasse Mäkelä. I'm acting as your host today. I lead the Investor Relations at Multitude as well as mergers and acquisitions and strategic initiatives within the group. I have a long background from investment banking, finance and FinTech entrepreneurship before joining Multitude 2 years ago. Today's presentation includes forward-looking statements concerning future events and our financial performance. These are predictions based on our current expectations and assumptions, many of which are outside our control. Please note today's content should not be taken as an investment advice. Okay, let's move to today's agenda. We will dive into the key areas of our company, namely our strategic evolution, financials, our 3 business units and technology risk, HR and ESG updates. The day will be fully packed with a lot of information, and we intend to have a 5-minute break at around 11:15 CET, and we intend to finally end the session at around 12:40. Good. Let's move forward. I will now give you a short summary on where we currently are before we go to the main part of the Capital Markets Day. So we are a profitable, dividend-paying and listed FinTech company. And we have been creating success stories in FinTech for the last 2 decades. Multitude was started in Finland in 2005, and we have an EU-wide banking license in the group. Our revenues amounted to EUR 212 million last year, and we have about 700 employees. And we are providing services in 16 countries for some 400,000 customers in total. We are listed on Frankfurt Stock Exchange. We have been growing strongly, and we have been profitable during the last 18 years. But COVID pandemic was difficult for us as demand for the loans was reduced as the companies did not invest and people stayed at home and paid down their loans. We used this opportunity presented by COVID also to streamline some of our businesses in nonprofitable countries, which were mainly outside of Europe. And therefore, we saw a reduction in our sales during year 2020. But we are happy to show you that we are back on growth track, and especially our profitability has been growing rapidly during the past few years. Our mission of democratizing financial services has always been our guiding principle, so democratizing financial services through digitalization, speed and user-friendliness in a sustainable way. Our values were actually developed together with our employees. And these 5 values give you a good idea on how our customers and employees appreciate about Multitude. Our focus is on customer-centricity. We integrate solutions by seeing things through our customers' eyes. Our entrepreneurial spirit drives us forward. We value curiosity, innovation, agility and efficiency and always try to operate with minimum bureaucracy. We treat all shareholders with respect, including our customers, colleagues, partners and investors. We take accountability for our actions and strive to conduct business sustainably. And finally, we achieve the highest outcomes by working together in our winning teams. Multitude consists of 3 business units currently, which are supported by our growth platform. The first business unit is SweepBank, which is our shopping and financing app. It also includes prime loans for consumers as well as our recent business unit, warehouse lending. SweepBank represents about 9% of Multitude's total sales, and it is focusing on achieving profitability. Ferratum is our consumer lending business, which represents about 81% of total sales. Ferratum focuses on continued strong profitability and stable growth. Our third business unit is CapitalBox, which focuses on serving European SMEs. CapitalBox represents about 20 -- sorry, 10% of the total sales and its main focus is on accelerating growth and profitability. If we then look at our growth platform, this is what we see. Our growth platform is the key element for enabling our growth and scalability. It acts as an internal banking-as-a-service platform for our operations. Let's look at the growth platform at the bottom first. It includes elements such as compliance framework, banking license, technology stack, big data and AI, our product library and our customer management systems and processes. So all these elements build our growth platform, which enables our centralized and standardized operations and enables scalability. Our growth platform generates benefits, which are described at the mid layer of this slide. Firstly, it brings faster execution for the business units. It also allows them to grow faster and [ focus ] on the actual business. Secondly, it brings attractive funding for the business units through its access to deposit funding. Thirdly, it sources global talent to our business units as we have more than 40 nationalities inside the group in more than 25 locations. Next, the growth platform enables cross-selling opportunities between the business units. And finally, the combination of all these benefits brings scalability for the business units who are using Multitude growth platform. Good. So finally, our investors have been asking a lot of questions about us. And we want to summarize these key questions here, and we will answer these questions during today's session. First question is, what are the key growth drivers of Multitude during the next few years? Second question is, what does the future development of SweepBank look like? Third question is, how is the recent uncertainty in the market influencing Multitude's business? And finally, what are the key guidance metrics for Multitude going forward? But that's it from my side. And I'm now happy to introduce you to our Founder and CEO, Jorma Jokela, who will now take you to our strategic evolution. Thank you once more from my side. And Jorma, please go ahead.

Thanks, Lasse, and hello, everyone. My name is Jorma Jokela, CEO and the Founder of Multitude. Today, we will guide you through the Multitude strategy, the key functions and business units. Our aim is to provide you with the insight on how we plan to navigate this current market environment moving forward. And I hope our presentation give you a similar view to mind on the market potential, our great team, their skills and our unique market position. I think we have something unique over here. Like Lasse say, time flies. It's been over 2 years since our last Capital Market Day in May 2021. And at that event, we introduced a new strategy and rebranding for both group and our business units. Our bigger success is how well we have done against our financial guidance, what we public on this time, we have seen over 50% EBIT growth yearly. For me, meeting our guidance felt natural because I know the people and I have had the privilege to lead in this amazing team for over 18 years. I have seen how well our team does when they have clear goals and motivation on the place. Today, I'm extremely excited to present our evolved strategy and plans for the future. But let's start our roots first, where we have come. Ferratum's journey began 18 years ago in Helsinki, Finland. We were a small [ VC ] in our team questioning, why the financial industry hadn't adapt to meet a need of modern customers at the time when other sectors were rapidly digitalizing their offering? Seeing a real demand, we took the initiative to address it ourselves. We set out the credit solution that were pure digital, easy, simple and fast, catering to customers often overlooked by traditional banks. Our services are designed to be accessible to everyone, everywhere at any time. Our foundation has always been those core principles, and our commitment to them remain as strong as ever. As we stand at the forefront of FinTech and digitalization, we are witnessing the 6 powerful megatrends that are driving our industry in the future. We are deeply committed to sustainable finance, which is still in the financial industry to work greater democratization, eco-friendliness and responsibility. By integrating ESG criteria into our lending investment decisions, we are ensuring that our growth is not just profitable, but also sustainable and responsibility. The digital management of personal affair is now commonplace, boosting customer acceptance of digital financial solutions. This trend is expanding our customer base and enlarging market potential. The user experience is key. We prioritize the customer's journey over the product itself. This is the evidence across the sectors and is a driving force in our product development strategy. We believe that user-friendly digital financial solution should be accessible to all, irrespective of the geographical location, nationality or socio-economical status. And open banking is just more than just PSD2, API and data sharing. It's about understanding that individuals own their own data and should have full control over it. This will lead to multiple of new interconnected financial product, service and partnership. Those megatrends are doing more than just influencing our future. They are making it more dynamic and full of the opportunities. At Multitude, we are the -- we earned to build the high-performance, multi-cultural organization that has over 18 years of experience and competence from more than 25 countries worldwide. Our tactical decisions are crowded in our core beliefs, which is behind our exceptional track record of execution. We are the champion of agile methodology, which we believe is only way to build amazing customer experience. Our global thinking and local action approach is the fastest way to achieve the goals in complicated, digital and data-focused environment. We have shifted from the old idea of the big, huge central office hubs for managed talent remotely. We are committed to sourcing the best global talents no matter where it's located. Monological outdated IT system architect, they just don't fit our business. They are too slow, costly to develop. And we favor an architect of numerous, small, interconnected software component that provide fast, cost-efficient and stable way to scale our business, which is called micro service. Naturally, this is supported by cloud-based hosting, which can be scaled in seconds to meet any demand for computing power. This is the foundational assumption for our big data lakes as well as supporting automated real-time and AI-driven process. This topic, you will hear more from our CTO, Mr. Kabele, later on today. Good. Our current strategy has pushed us forward with impressive annual EBIT growth over 50% yearly. And we are making 4 strategy adjustments for further enhance. We don't need strategic revolution, and that is the reason why we are choosing strategy evolution over revolution. Firstly, we are refining Multitude vision to be even more aligned with our goals where growth platform is middle of our strategy and actions. Secondly, our SweepBank or Sweep team and technology stack will be fully integrated into our customers and SME business tribe, ensuring the wider and more seamless service to our customers. The third adjustment is the launching of the new wholesale banking tribe, making a significant expansion of our service and tapping in the new market segment, combining warehouse lending and payment service offering for institutional customers. And lastly, we are shifting our financial guidance from EBIT to net profit, underscoring our commitment to serve our shareholders' [ betterment ]. With those strategy adjustments, we are set to ride profitable growth further. At Multitude, we are confident in the vision that has guided us the common direction. And today, we are excited to share how this vision will transform moving forward. Building the most valuable financial ecosystem has been our North Star, leading us to create a comprehensive set of financial products and service that works in harmony to serve our customers' diverse needs. As we look to the future, we are sharpening our focus with the new vision, building the most valuable financial platform for overlooked customers. This reflects our commitment to inclusivity and our dedication to providing financial solutions to those who have been consistently underserved by traditional banks. Additional, we like to promote our growth platform in the middle of our vision. The inspiration for our people at Multitude is fueled from our mission to transform the financial world, offering incredible experience to customers who are often overlooked by other banks. We have fully dedicated our mission to democratization of financial service through the digitalization, making them fast, easy and free. This ethos is always -- is also where our product logic is based on. We aim to build something unique and extraordinary, something that everyone involved can be truly proud of. Our vision, build the most valuable financial platform for overlooked customers, set a unified goal and direction for our team. Our values that -- our values are what we believe in and what we value in greatly and where we base our decision-making. They are principles that we live by every day at Multitude. And you will hear more on this from our Chief of Human Resource, Mr. Vella, later on today as well. Good. As we progress at Multitude, we are integrating the SweepBank into our established tribes, while also introduced the new wholesale banking tribe to promote our future [ growth ]. This strategic alignment with consumer banking tribe and SME banking tribe is not merely an organizational change, it is expansion of opportunities and possibilities. SweepBank will continue under its name in the mobile banking and shopping sector, ensuring that customers retain their familiarity of the brand while creating the new product offering from the Ferratum and CapitalBox teams. This integration is designed to unlock cross-selling opportunities and enhance our operational scalability. Creating this wholesale banking tribe was a natural move, driven by a significant growth in warehouse lending and payment service. It let us use our growth platform skills and resource not just for ourselves, but also for other in the finance sector. Our FinTech growth platform is backbone of this strategy. After this restructure, we will have 3 business tribes operating independently on the growth platform: Multitude Bank, concentrating on the wholesale banking; Ferratum, digital consumer banking; and CapitalBox, focused on SME digital banking. And SweepBank brand and its customers are now part of consumer and SME tribes with benefit from the wide range of new lending service. And in line with our platform strategy on scalability and exploring the new ventures, we have an investment in Sortter beginning of this year, a leading financial service comparison platform, signaling our readiness to embrace new possibilities. At Multitude, our growth platform expansion is thoughtfully architected upon the 3 fundamental pillars: organic developments, partnership and acquisitions. Each pillar is crucial for our growth on both platform and tribe levels. And I will leave tribe CEOs to explore more specific later on today. Organically, we are improving our customer experience and internal process, expanding our reach with the new product and markets and enhancing our unique financial service. Our partners, helping us quickly expansion our product range and reach a new customer approach efficiently. Acquisitions are the key strategic choice, allowing us to enter new markets and new products. They are important for fuel new energy into our growth platform and integrate seamlessly with our existing tribes. We have carefully analyzed each tribe's market potential, using data from local and global source. We did not want to apply the one general model to all tribes, so we investigated industry-specific data and build a unique model for each tribes. And what surprised both me and our team is the massive opportunity present in each of our 3 tribes, which is growing larger every day. The addressable market size totals over EUR 55 billion in lending portfolio, which traditional banks have overlooked due to lack of understanding their customers. And here, you can see -- this picture, you can see the share from this huge market potential at the tribe level. And we are eager to take this challenge, and we'll do everything necessary in the coming years to increase it. Hope you have already recognized that we are quite exceptional in the company with value space on ESG, deliver continuous growth and profit, fueled by yearly dividend payment to shareholders. Our environmental targets will be launching today, and we aim to make a positive impact on our society and environment. And you will hear more about this from our ESG Manager, Mrs. Khumalo, later on today as well. We provide current EBIT guidance in May 2021, which we are well on track today. We would like to shift our guidance from EBIT to net profit to better serve investor needs. Additional, we are extending our guidance period to end of 2026 with the goal of achieving EUR 30 million net profit, what is, by the way, over 25% growth yearly. Our CFO, Mr. Egger, will elaborate on this more after my presentation. Additional, we want to share our target for dividend payout ratio, which is set between 25% and 50%. Naturally, this will be subject to approval in our yearly shareholder meetings. But before I end my presentation, I would like to leave you with our management dream to build a EUR 1 billion valued company in the next 5 years. I really want to thank you for joining our Capital Markets Day, and it's quite fun to do impossible things together. And next, I want to introduce my colleague and our amazing CFO, Mr. Egger, to whom I'd like to hand over. Please, Bernd, go ahead.

Thank you very much, Jorma, and good morning, everybody. First of all, Jorma, before I start, thank you very much for the label as amazing CFO.

I hope you like it.

It is always good to see that we are aligned when it comes to fundamental questions. So that's -- thank you very much.

That's okay.

Yes. My name is Bernd Egger. I'm the CFO at Multitude. And I will talk about how we look at the investment case, Multitude. I'm going to present data reflecting most recent financial performance. I would like to provide insight into how the organization has become leaner and more efficient over the last couple of years. We will naturally talk about asset quality. Funding strategy will be a topic. We will assess our performance relative to the financial guidance given in the previous Capital Markets Day some 2.5 years ago in a little bit more detail. And of course, we want to share our future financial performance guidance with you. Let us get started and let us talk about Multitude as an investment case. If we take a step back to identify what features or what corporate and financial patterns support our view that Multitude has the potential of being a rewarding investment case, then these are the key value drivers that we are seeing. Number one, we are a growing FinTech company. Many companies have been struggling currently; we don't. Number two, we are highly resilient. What do I mean by that? The market has, over the last couple of years, confronted us with a variety of challenges. Nonetheless, all businesses are showing growth, and all business units are on an upward profitability trend. Number three, we are a market leader. We see a trend towards market consolidation, and we want to benefit from it. Number four, we are increasingly profitable, and the journey is supposed to continue. Number five, as Jorma has pointed out, we are dividend paying. We have a strong dividend track record, and we want to continue distributing part of net profits to shareholders. Naturally, this is subject to general assembly approval case by case, but it is a clear statement to underline the ambition to increase shareholder value. These are the main reasons why we think the investment case, Multitude, has a lot of value-creation potential. My next topic is growth dynamics. From 2017 to '23, our business has seen an impressive CAGR, which stands for compound annual growth rate, of slightly above 15% in loans and investments, so 15% each year growth compared to the previous year. I'm using here a quite long reference period to demonstrate the business' resilience in overcoming crisis. You see a dip in the portfolio size in 2020 on this slide. However, from '21 onwards, we have been moving on an upward trending trajectory, demonstrating exactly this resilience I referred to. Our strategic main focus currently is on European customers, representing some [ 97% ] of our business. Equally important as growth is our dedication to profitability in all markets. It is not about maximizing the number of flags on any virtual map. Our focus is on growth and profitability, which is always a bit of a trade-off, but currently, I think we are balancing really well. Let me focus on profitability next. Historically, profitability metrics used to be very strong, peaking at EUR 45 million EBIT and more than EUR 20 million net profit in 2019. We then experienced a profit reduction in 2020, which is obviously impacted by COVID, but managed quickly to reestablish positive profitability momentum and to show a sustainable path of profit increase. We have just last week published, and some of you might have participated in our earnings call on Thursday, published the 9-month numbers with EUR 32.5 million EBIT, EUR 15.2 million profit before tax and EUR 12.4 million net profit for the first 9 months of this year. Multitude is about to complete its third consecutive year of significant increases in EBIT, in profit before tax and in net profit. From 2020 to the last 12-month numbers as per end of Q3, we achieved an outstanding profit CAGR of 23%. Key drivers behind this, in my personal view, quite compelling performance have been, firstly, regained growth momentum. This growth momentum has been instrumental in establishing improving profitability in all businesses, which is reflected in the graph on the right-hand side. We have pushed up EBIT by 50% during the first 9 months this year. All businesses are producing significantly better results than last year. Ferratum EBIT, up EUR 3 million; Sweep, up EUR 4 million; and CapitalBox EBIT, up by EUR 4 million as well. My colleagues, Kristjan Kajakas, Mantvydas Štareika and Antti Kumpulainen, will provide you with more business insights in a couple of minutes. So I recommend to wait a bit. Secondly, when it comes to profit drivers, ever improving data-driven underwriting and credit risk management skills. The third profit driver is the scalability of our operating model. On the scalability of the operating model, I would propose to spend an extra minute. Multitude's operating model is designed to be flexible and responsive to meet the demands of clients in a rapidly changing environment. At the same time, most of Multitude's core processes are highly standardized and automated. The most relevant driving forces have been automation, underwriting and other core processes, a leaner organization. To give an example, we are in the process of reducing the number of legal entities in our group by 35%, so more than 30%. And finally, elimination of nonprofitable businesses and markets. This progress in efficiency and scalability is mirrored in a 23% reduction in personnel expenses between 2018 and '23, an annual incremental savings rate of 5% each year and a 16% reduction in operating expenses during the same period, which is equivalent to an annual cost reduction of 4% each year. Let us move on from our very successful cost management to quality of assets. In the context of analyzing asset quality, on Slide #27, I will narrow my focus on key performance metrics and on financial impact of credit risk. Clemens Krause will provide more detailed insights later in our Capital Markets Day presentation. My key message is on this slide, #27 -- or 28, sorry -- 27 is fine, sorry. In absolute numbers, last 12-month credit loss level is in the region of EUR 80 million. This is a credit loss level which is 22% below the corresponding number of 2019. This is a very significant reduction. Credit losses as a percentage of portfolio size have been reduced by even almost 50%. Currently, annual credit losses of net accounts receivable, and this is a metric I'm sharing quarterly, as you might be familiar with these numbers from our earnings call, on a 15% level, down from almost 30% within 4 years. So essentially, this means that we are cutting relative credit losses in half. This strong performance in turn is a consequence of strategic choices, so this focus on profitable businesses and markets, which I've tried to highlight already; secondly, technology and know-how with an industry-leading underwriting and credit risk management team; and thirdly, organizational principles. Multitude is in control over the value chain from data science to underwriting models to loan decisions and collections. I have 2 more topics I would like to spend some time on, that is funding and financial targets. Let us take funding first. I would like to briefly talk about Multitude's funding strategy, our funding principles and about the financial impact of those. Here is how I would characterize Multitude's funding principles. Number one, cost efficiency. This is the most relevant factor driving our funding mix, but also our group at the entity structure. The core strategy here is to optimize deposit funding of and for all businesses. Number two, diversification. We will also, going forward, maintain a diversified funding strategy, including activities on the capital markets. Within deposits, the plan is to minimize concentration risk in our client base. Currently, more than 99% of deposits are at or below EUR 100,000. So there is hardly any incentive to withdraw funds. This is one of the reasons why our deposits are so sticky. Number three, strategic focus. Stable funding structures require long-term planning. It is now in this high interest rate environment paying off that we had decided to streamline our group structure to push deposit utilization already a couple of years ago. And finally, number four, profit orientation. Profit is our main source of equity. Currently, we hold EUR 184.4 million IFRS equity and net equity ratio of more than 28%, which is really, really strong. Let us now take a look at funding-related financials. Naturally, current interest rate levels and limited receptiveness of financial markets are a burden in connection with both, cost and also availability of debt. However, over several years, we have acted in accordance with the funding principles I've just presented. Consequently, we managed to reduce dependency on debt capital markets and to elevate utilization of deposits. The implementation of this strategy is reflected on the chart on the left-hand side. In numerical terms, the key message is simple. 4 years ago, the ratio between capital market debt, excluding IFRS equity instruments, to deposits used to be 1:1, so around about in absolute numbers EUR 200 million each. Now the same capital market debt to deposit ratio is equal to 1:11, so much more favorable and cost efficient. So from EUR 200 million each to EUR 50 million debt capital markets, debt to EUR 550 million deposits. The financial impact thereof is shown graphically on the right-hand side. Relative debt funding costs are much, much lower than historically despite the increasing interest cost pressure, which, to be honest, and I need to be open about that as well, which we will have to cope with also going forward. In fact, for us, funding is no longer a pure cost factor. We're intending to transform efficient and scalable funding into a competitive advantage. Antti Kumpulainen will talk more about this topic from a business angle. Finally, and I guess this is of interest to all of you, let us talk about targets and about performance. Before we look ahead to the future, let us take a look back at the financial guidance we had published in early June 2021, so before we all entered into a period of political instability and before we all experienced a sharp rise in inflation with all its consequences. An assessment of our '21 guidance yields the following results. Guidance metric number one, we would return to top line growth in the second half of '21. This is the clear take. Revenue increase on a quarterly basis was achieved, as indicated in our guidance, and we have been growing sustainably since then. Secondly, in addition to sustainable revenue growth, we had committed ourselves to significantly ascending profitability levels. The logic was simple, achieve EUR 20 million EBIT in 2021 and increase by 50% each year for 3 years in a row. So how did we perform? In 2021, EBIT guidance of EUR 20 million, actual EBIT performance of EUR 27 million exceeded guidance level considerably. 2022, EBIT guidance of EUR 30 million, again, this is the take, actual EBIT performance, EUR 31.6 million, outperformed target level of EUR 30 million. For '23, another 50% is increased to an EBIT target of EUR 45 million. The first month -- first 9 months resulted in EUR 32.5 million EBIT, which I've already briefly mentioned in this presentation. We, therefore, confirm that we are on track and expect '23 EBIT to land in the range somewhere between EUR 44 million and EUR 46 million. When we issued our midterm guidance in 2021, and I do remember this very well, not everybody had considered our ambition to achieve EUR 20 million and then EUR 30 million and then EUR 45 million EBIT realistically doable. For us, it was not so much about the exact numbers, but about demonstrating the ability to get back to growth and to achieve very meaningful increasing profit targets. Finally, let us talk about the future and how our view of the future presents itself in financial terms. Over the last couple of years, several investors and other stakeholders have asked us about our view, not only on earnings before interest and tax, but also about our net profit expectations, which I understand. We do acknowledge that, and we do acknowledge also that this has become even more important as portfolio sizes and, consequently, funding needs are growing and as high interest rate levels somehow discount the economic relevance of EBIT-only type of targets. We, therefore, concluded that the best way of meeting investors' requests in this respect would be to introduce net profit as midterm guidance key performance indicator. And this is exactly what we are doing now. Our midterm net profit guidance captures the period up until '26, so slightly more than 3 years. Our target level is a net profit of EUR 30 million in 2026. Please note that this net profit metric is subject to adjustments for one-offs, potential one-offs and for negative external economic factors. Taking the most recent audited consolidated financials from 2022 with a net profit of EUR 12 million as a starting point, this target implies a net profit growth by a factor 2.5 or a compound annual growth rate of net profit of 25%, to be precise 25.7%, over 4 years in a row. In order to get us there, we will have to invest in future growth, and we also need to apply stringent capital allocation principles. These include all businesses and all ventures will be measured against net profitability targets. All business initiatives are expected to be incrementally net profit accretive within 2 years. In the context of our financial targets, I also would like to give a more technical update on the way we will present our financials going forward. As from the financial year '23 onwards, we will change the structure of our primary financial statements of P&L, balance sheet and cash flow statement in a way so that they follow financial industry structure. This has already been discussed with our auditors, PricewaterhouseCoopers, and will be implemented at year-end. We are convinced that this will go hand-in-hand very well with the implementation net profit focus, and we think that this will make it even easier for investors and all readers essentially to understand the key drivers of the business. From this technical aspect, I want to go back to the main content of the Capital Markets Day: this is strategy, business and performance. With this, it is time to hand over to our tribe CEOs. Kristjan Kajakas, may I ask you to take over?

Thank you, Bernd. Hello, my name is Kristjan Kajakas, and I'm the CEO of Consumer Banking tribe. I've been with the company now over 13 years, having various positions from product owner to today's position where I have been for the last 3 years and still enjoying every day of this adventure. Today, I'm excited to present to you a joint story about Ferratum and Sweep, first, having short introduction about the tribe, defining our customer base and outlining our service approach and presenting our growth strategy for the upcoming years. So let's embark on this journey together. So who is our customer? This is the question I get quite often. Our customer base is equally split between male and female. They're pretty well spread to all age groups, on average about 30 years of age. Salary level is slightly above country average, and they usually are living in cities. What unites them is that they are a diverse group with distinct needs. In certain instances, they encounter unexpected financial needs and appreciates which service to address this. In other cases, our customers are tech-savvy individuals who prioritize superior servicing or pricing when applying for loans. They're seeking the convenience of accessing financial solutions from any location. Our operational approach is summarized by the principle of digital-first. This philosophy underscores our emphasis on digital marketing as primary focus. In our customer service, 79% of customer requests are efficiently handled throughout digital channels. And we take pride in providing instant loan positions. And in the majority of cases, we are committed to delivering funds to our customers with unparalleled speed, often instantaneously. Presently, we operate in 13 countries across Europe, establishing ourselves as a well-recognized brand within our segment. Our market presence is strengthened by mature sales channels, contributing significantly to the sustained growth of our customer base. Integral to our success is our robust technical platform, which features a modular technology for facilitating agility and adapting to evolving needs. We have hybrid cloud infrastructure, ensuring business continuity, and the implementation of APIs that empowers with third-party service integrations and facilitate the seamless incorporation of complementary product offerings to our customers. In our daily lives, unforeseen financial needs can catch any one offguard. Traditional lenders, unfortunately, frequently struggle to provide the swift responses needed in these situations. Recognizing the challenges faced by the individuals when unexpected financial demands arise, we are committed to addressing this gap. [Presentation]

So I hope you enjoyed the video that was showcasing our solution to address the customer needs. And we take great pride in our team's achievements, delivering both the video and also the processes that hundreds of thousands of customers across Europe have used or are currently using as service. All right, but let's move next slide and take a look at our -- how we have managed our business since the last Capital Markets Day. On this slide, on the right, you can see how we have managed to convert even more customers from contacting customer support to self-service. And this has made our operations very scalable. And what is most important, our customers are loving it, showing by the customer satisfaction score you can see on the slide. Since 2021 Capital Markets Day, we've successfully expanded our lending portfolio by over EUR 50 million. This growth has been strategically concentrated in our focused markets, the strategic shift we took when we last met, resulting in an enhanced asset quality and improved profitability. Main growth drivers have been improving digital marketing and upgrading customer experience. And next, let's take a look how we will take our business further. Presenting our future growth drivers. We are expanding from 2 -- from the previous 2 customer touch points, which included installment and revolving loans, to a broader spectrum of 5 touch points. This evolution encompasses current accounts with cards, savings and then engagement program, providing a more diversified and comprehensive range of financial services to our customers. We offer 2 distinct credit products, installment and revolving loans, each tailored to meet different customer needs. These products boast a long-standing history within the Ferratum portfolio. As illustrated on the right, both products are yet to be fully scaled across all markets, and this presents a significant opportunity for us to expedite the growth of our core business in the markets we currently operate. The integration of Ferratum's customer base with Sweep technology presents a significant opportunity to expedite our organic growth by leveraging the assets we have already built. In specific markets, Ferratum customers now have the option to enjoy a debit account completed with a virtual Mastercard. We have introduced an engagement program for our customers, placing them at the forefront of our efforts. This program enables our app users to accrue loyalty points, which can be converted into various benefits. By incorporating elements like payment behavior, collections and referrals, this initiative aims to enhance customer retention and elevate the overall lifetime value of our customer base. Our new consumer banking tribe strategy revolves around the core foundation of credit products, with Sweep offerings serving as complementary elements strategically designed to bolster customer retention. This distinctive strategy sets us apart from the traditional neobanks that predominantly emphasize acquiring a high volume of customers. Instead, our primary focus is on maximizing customer lifetime value. Opening Sweep account is super simple. Existing customer can find the link from Ferratum My Account or from our websites, install the app and, after answering simple KYC questions, will unlock the full benefits of our digital banking service. So how simple can banking be? After incorporating Sweep products, we're entering the market segment more than 3x larger than today with a lending portfolio of around EUR 24.9 billion. This indicates substantial growth potential for our business. Our growth strategy is based on 3 pillars: organic, partners and M&A. I have previously discussed our organic growth strategy, so I will refrain from revisiting it. Our key emphasis lies in rolling out credit products, expansion of Sweep technology, leveraging data science and AI to enhance our digital marketing efforts and integrating new technologies and databases to continuously refine our underwriting processes. Leveraging our pan-European presence, we aim to collaborate with various partners to embed digital funding solutions into their customer journey. We recently conducted a pilot of sales finance in Finland, capitalizing on Sweep technological infrastructure, which offers a lightweight and scalable solution for potential expansion into other markets. But currently, our initial focus is on validating the proof of concept before start scaling the operations. In the scope of M&A, our strategy is well defined. We are actively exploring to purchase loan portfolios within our established markets. In the countries we operate, we are exploring new products that could fit our customer needs. On top of that, we are extremely interested in businesses that operate in the same customer segment in the countries we are not present today. We are locking those companies for full M&A or also joint venture structure to utilize our platform to enable their growth. From a group perspective, our reporting focus is transitioning from EBIT to net profit. However, at the business unit level, our target remains centered around achieving robust EBIT performance. Over the past 3 years, we have consistently demonstrated solid EBIT growth, and we anticipate this positive trend to persist. The foundations for this sustained growth lie in the expansion of our portfolio, robust asset quality and notably a high level of customer satisfaction. And my purpose here is not to give you a tribe-level financial guidance. This is only our view on the consumer banking tribe ambition, and it does not include any deteriorating market environment or impact from larger partnerships or acquisitions. The current market conditions are stable, supported by a strong history of performance, a well-established market position, a proficient team and ample resources at our disposal. So over the past 3 years, we have not only met or surpassed our financial ambitions by exceeding 5% yearly EBIT growth, and we are poised to continue this trend for the next 3 years. And now I'm -- thank you very much. And now I'm happy to pass the microphone to Mantvydas, the CEO of Business Banking.

Good morning, good afternoon, everyone, who is joining us overseas, and thank you for being with us. I'm Mantvydas, representing CapitalBox, a lighthouse of innovation in the FinTech sector. Working for more than 17 years in the financial industry from leading global credit insurance company in Baltics to creating a digital European-licensed neobank, I'm more than excited to be on board of the Multitude Group being responsible for corporate banking. In the kingdom of digital lending, we don't just participate, we lead. Our journey over the last 8 years has taken us across more than 5 countries, empowering over more than 7,000 businesses. Our more than 117 million portfolio is not just a number, it's a testament to trust and impact from our existing customers. So in the coming 10 minutes, I will lead you with our story and solution we bring to the market for the SMEs. Did you know that SMEs make up to 99% of European business? You will see this in the slide. In the next slide, you will see this. Can we change the slide, please? Okay. Yes, thank you. We are running now. It's a good start, no nervous. Okay, so I told about the CapitalBox. And now we are running further to speak about SMEs. So let's continue to the next slide. So as mentioned, you probably know that up to 99% of European business is being comprised by the SMEs who provide nearly half of the jobs to European market, yet, they are financially underserved. Imagine you are running SME, you have innovative ideas, dedicated team and a market tribe of your products. But when it comes to the funding, your door just closes. Banks often see small businesses as a high risk or too small to bother with. This is a core of the SME funding gap. It's a systemic issue where traditional financial institutions overlook the potential of small enterprises due to perceived risk and administrative burdens. In Europe, this gap is not just a small slot, it's a widening pit. Despite SMEs being the backbone of the economy, contributing 50% of the jobs, they are struggling to secure the financing they need to grow, innovate or even just to survive and expecting challenges. The gap grows by 9% annually, not due to the lack of the potential in this sector, but due to the lack of the access of the funding. So when the person sees the difficulty in every opportunity, we, at the CapitalBox, see the opportunity in the aforementioned difficulty. In this growing gap, we see immense potential, a chance to empower a space to grow. So what is our answer to this mentioned challenge? We continue to the next slide. We see that our solution is a service that's not just a digital and online, but also deeply customized. We're not just lenders. We are architects of a financial future that's more inclusive and accessible. Our approach resonates with the needs of the today's fast-moving world. With every loan, we bridge a gap that traditional banking often overlooks. Our solution is mostly used by limited companies or sole proprietorships established less than 5 years ago with average EUR 300,000 yearly turnover with the teams up to 5 employees. CapitalBox usually support companies for equipment financing, working capital or as a driver for growing the business by providing an average funding of EUR 20,000. By understanding better the needs of these companies and structure of their financials, we can use available data and put the required funding in the right timing for businesses to grow. Thanks to our data analysis, we can predict better than the customer itself. By doing this, we can work in different industries and support different customer needs. During our history, we dedicated lots of our resources to create scalable system with API connections, enabling us to collect various data in no time. This is not only decreases the processing time for us, but also gives us broader view of the economy and a customer possibility to return the funding. In other words, we let our customers to focus on their businesses. So to make best bagels in the town or deliver your ordered goods on time, CapitalBox just takes care of the filling the gas for those businesses and keep them running. It is simple: our solution is customer-focused, fast and efficient. We're breaking the barriers that banks can't, offering digital and online service tailored to SME's unique needs. So let's talk about the marketplace, the global marketplace of the FinTechs today. If we can continue to the next slide, you will see that in the global marketplace, CapitalBox stands out. We focus on unbanked SMEs, a segment often abandoned. It's not just about lending, it's about understanding and serving this community. Our profitability in this niche is not just by chance, but by design, reflecting our strategic skills. So we see CapitalBox positioned as unique in this market. You would probably ask, so what is so unique about this? It is simple. During the long experience, we now understand SME segment deeper, wider and much clearer. We know how their financials look and develop. We know when customers can borrow funds and how they will return it to us. In addition, we now understand differences of SME in the different markets. Despite European Union is one market, there are different scenarios how to work in each economy. We learned it by doing and now we can utilize these lessons. We separate from other known brands in the market by being very specialized, but also multi-country SME lender. To prove that this is not just nice words for me, let's take a look inside of the CapitalBox. So the previous year was a canvas where we painted a picture of resilience and growth, decreasing credit losses while expanding our portfolio, which we will see in the next slide. We've demonstrated that prudence and progress can coexist. I have started as a CEO in the CapitalBox almost a year ago. I found a very good technical solution in place and wanted to try if we can really grow profitably with that. So this year, we already managed to strengthen the country management in Netherlands and in Lithuania. We launched new products like collateral lending in a couple of our countries, and we will scale to the other countries. We launched the credit lines in the Netherlands. We continued our automation journey in Finland and Sweden, and we launched in other countries. So the companies can borrow from us completely automatically without any involvement of our employees. Our both revenues and EBITDA on the rise due to the changes we made in the management. Net revenue grew by more than 11% and EBIT, about EUR 4 million. Our team spirit and customer happiness have really gone up as well, which is important for us in terms of the progress we've made in the long run. And most probably, all of you understand that such changes do not happen overnight, just having a nice and long sleep. This is a long trip we already made with my team. Because without commitment, you will never start. But without consistent -- consistency, you will never achieve the goals. From what is mentioned above, I'm more than confident that CapitalBox foundation is stronger than ever before in our history. So what is next in our journey? In the next slide, you will see that the next 2 years are about scaling to new heights. We are harnessing innovative channels for customer acquisition and retention, ensuring that every SME that comes to us experience a seamless, stress-free journey to financial empowerment. We see our growth strategy consist of 3 main pillars, as it was already mentioned by my colleagues. Let me explain more about those 3. So organic, we had only lending in our offer to the customers, but small though complex companies need much more than this. They also need their everyday operations to take care of. Therefore, we integrate SweepBank solution of mobile app and daily banking to bring more benefits to our SME customers. This integration is designed to unlock cross-selling opportunities and enhance our operational scalability. It will also increase retention and lifetime of major part of our customers. Talking about partners, together with other FinTech or service providers, we are going to offer lending solutions embedded into different customer systems. We already mentioned our technical solution as scalable and fully API-based. This opens the doors to accounting companies, marketplaces, POS providers and many others. And least -- and last, but not least, is scaling with the help of other companies, which can use a synergy by merging with our group. We already are on the way to use those synergies, but only when there is a real value for the customer. We're looking to expand when it makes sense for us and is according to our vision. So as you can obviously see, our journey is evolving, expanding beyond lending to a holistic financial suite. This evolution is about creating a multiservice solution where customers don't just come to us for a loan, but for a financial partnership that supports their daily needs. Automated workflows and expanding omnichannel capabilities mean we are becoming not just a lender, we are becoming as a lifelong financial partner for all the SMEs. Previously, we had 5 products. Now we will increase it to the other solutions together with the Multitude and Sweep in order to create stickiness to the customer. During 2024, we will deliver this solution, which is already in production at the moment and offer it to all our countries. Our multiservice solution for small companies will give all essential financial tools, provide working capital, secure banking account and collect and send the company payments. Due to the fact that we have infrastructure ready in our group, we can utilize it in no time and just help SMEs by covering their daily needs and continue running everyday business. So finally, speaking about the potential, SME market is huge in Europe, but still leaving an enormous gap for CapitalBox to grow. On the left, you can see the biggest markets in Europe for SMEs, which remains as the main potential for us. With our data-driven approach, we are poised to capture a significant share of Europe's lending market. Our created ledger and dashboards enable us to make smarter business decisions, predict cash flows and monitor customer behavior to optimize our strategies. Just consider this potential, total SME lending by all institutions to all companies with all products is about EUR 7.3 trillion in Europe. The total potential for CapitalBox with existing and new products leads to EUR 15 billion as a total potential size of the portfolio. Currently, we take only 1 percentage out of this. But due to all the reasons mentioned in my presentation above, I have a clear -- we have a clear potential for exciting growth here. So we can continue to take banks rejected and unbanked customers and fund them according to our credit risk practice. This isn't just a goal; it's a clear, attainable vision. As we often say, the only way to predict the future is to create it. So in conclusion, let me leave you with this thought: in a world rapidly shifting to digital, CapitalBox isn't just keeping the pace, we're setting the pace here. As a purely digital online lender, we have not just proven our concept, we perfected it. Our niche in the SME lending isn't just a business choice, it's a commitment to a sector that's a backbone of economies, yet often overlooked. We're not just part of the future, we are helping to create the future. Thank you for your time and belief in our journey to redefine SME lending. Thank you.

Thank you, all speakers, thus far. We will be now taking a brief 5-minute break, so we will be back at 11:15. But in the meanwhile, we kindly invite you to explore the Multitude website at www.multitude.com. There is a lot of information and resources for the investors, analysts and any interested parties. Additionally, we encourage you to follow our LinkedIn profile because we are quite frequently sharing updates and upcoming events in there as well. So thanks for your attention, and enjoy the break. [Break]

Welcome back. We are now ready for the second part of our Capital Markets Day 2023. I'm happy to introduce to you, Antti Kumpulainen, the CEO of Multitude Bank. Please go ahead, Antti.

Thank you, Lasse. And thank you for the interesting presentations, Kristjan and Mantvydas. Truly great opportunities in both consumer lending and SME business as well. Hello, everyone. I'm Antti Kumpulainen. I'm CEO of Multitude Bank. My journey at Multitude started almost 8 years ago, in 2016, after years of working with payments and lending. I have been the CEO of Multitude Bank since 2021, and I'm also currently leading our newest business unit, wholesale banking. In the following slides, I will guide you through what wholesale banking in Multitude is and explain why we have entered this new business line. At Multitude, we boast extensive experience in lending and FinTech, recognizing the pain points and opportunities in the industry. We do understand that traditional banks may not always possess the necessary knowledge to cater to the needs of our industry peers. With our customer-friendly solutions, we are well positioned to bridge this gap. Having successfully addressed these challenges for ourselves, we have extended these solutions to be available for others as well. We have a unique solution, which is initially developed to support our Ferratum, SweepBank and CapitalBox tribes, and we are now ready to offer our solution to others. Leveraging our exceptional industry understanding, we can empower others to grow alongside us. Within our payment platform, we have the necessary elements in place for real-time payments, multiple currencies, virtual accounts and various setups crucial for end-to-end successful payments operations. Our world-class risk management tools, coupled with our successful experience in understanding and managing consumer and SME lending portfolios, position us as experts in lending dynamics. Utilizing our scalable deposit funding, collection expertise and the power of data and AI, we can provide attractive and profound funding solutions. The secured debt product offers an ideal means of financing loan portfolios and other assets in an efficient manner. With deep knowledge of different regulatory frameworks, we can seamlessly provide our solutions in multiple jurisdictions for the FinTech industry. The offering of services mentioned earlier are put together to banks, payment institutions and electronic money institutions in their business and growth. Our payment platform supports core payment processes, serving as a reliable daily business support or a formal option for managing payment trails, facilitating both receiving and making payments and managing accounts efficiently. For alternative lenders, FinTechs and investment companies, our scalability extends to funding, risk management and underwriting experience. We have successfully introduced diverse funding solutions, utilizing lending portfolios as collateral. The global portfolio management knowledge and experience accumulated by Multitude over the years provide us with a unique edge in comprehending counterparty risks. This allows us to tailor solutions that offers us the required collateral and, on the other hand, funding to the client, which with execution and transparent favorable terms. Alternative lenders, FinTechs, investment companies, do seek funding to scale up their operations after facing challenges due to limited access to deposit funding. Understanding of the different business models amongst traditional banks is limiting the access to funding for these companies. Alternative lenders without deposit-taking possibilities do have EUR 15.7 billion in net account receivables in Europe. This market is now ready to be served by Multitude. Multitude has cultivated expertise in lending since the beginning of our journey, particularly in understanding the dynamics of consumer and SME lending, which is a cornerstone in our risk management approach. This expertise now translates into our secured debt offering, utilizing scalable deposit funding and portfolio management know-how to extend our impact in the wholesale market. The product itself, that's straightforward: We provide secured funding against lending portfolios or other assets, which are pledged to Multitude as collateral. This collateral not only serves to mitigate credit losses, but is also subject to in-depth monitoring throughout the funding life cycle. Our funding option trades from EUR 5 million to EUR 20 million with maturities extending up to 48 months. Our efficient risk management tools and data utilization, both internally and externally, enable a swift underwriting process, which typically concluding in about 2 weeks up -- the whole process is typically concluded within about 6 weeks, thanks to our robust experience and digital approach. Multitude seizes the opportunity to thrive in the market where substitutes at the moment are somewhat limited. Our extensive industry knowledge and broad contact network provide a robust pipeline to facilitate our growth. Efficient, accurate and swift payment processing is a cornerstone of any FinTech, and Multitude understands this crucial aspect. Our real-time payments platform, initially developed to serve our own tribes, is now poised to scaling up to cater to payment institutions, electronic money institutions and FinTechs. In Europe below, there are over 6,000 electronic money and payment institutions together, and many of those are actively seeking for alternative payment options. This provides us ample opportunities to find the right partners to serve through our platform. We do offer real-time payments to process large payment volumes in various currencies. The experience gained from servicing Multitude tribe has proven the platform's effectiveness in multiple jurisdictions where Multitude operates. Transaction monitoring is extremely paramount in payments. Leveraging our real-time monitoring, AI and various RegTech solutions, we are well positioned for this critical aspect of payment business. Our clients can grow with us both in volume and also geographically. Looking ahead, we plan to scale up our offering in 2024 by adding more customers to our platform. We are set to scale up our wholesale banking offering in 2024. Over the past 12 months, we have successfully piloted the product and offering in warehouse lending. Our real-time payment platform is already operational and poised for expansion. The team is in place, the processes are in place. We are ready to execute the existing pipeline. In a strategic move, we are making changes to our operations and communication. Starting from January 1, wholesale banking will emerge as a new tribe in Multitude, and we will rename warehouse lending to secured debt in all of our communications. Post the pilot phase, it's time to provide additional focus for the new tribe. The recruitment of a new tribe CEO for wholesale banking is progressing well, and I hope that I can share some positive news about that in the coming months. With the concept proven to work, we are thrilled to see the new tribe concentrating on growth in 2024 and beyond. Thank you on my behalf, and I would like to pass on to our CTO, Kornel Kabele.

Thank you very much, Antti. Welcome, everyone. My name is Kornel Kabele. I'm Multitude's Chief Technology Officer. My journey at Multitude began 6 years ago, and I'm thrilled to share with you our transformative impact of our cutting-edge technology and artificial intelligence, which is enabling our business scalability, competitiveness and operational efficiency. At the heart of our digital-native business is a range of technological capabilities, each tailored to meet the unique needs of today's banking customers. This in-house innovations add value by securing and automating operations and elevating the customer experience using data insights gained using AI and machine learning, positioning us at the forefront of the modern banking. Let's dive deeper into the Multitude's technology platform. At its core, digital banking is about the user experience. Our user interfaces are designed to be simple and enjoyable. We enable integration with various platforms and services through our robust APIs, ensuring our customers have a unique and unified holistic banking journey. APIs are important component of our business, as Kristjan Kajakas and Mantvydas Štareika mentioned earlier. We have over 120 partners connected to our systems, supporting seamless customers' journey. The foundation of any successful digital venture lies in its architecture. Our high-performing [ event-driven ] platform is crafted for efficiency, scalability and reliability. By leveraging modular and integrated design, we have built an architecture that can adapt and expand, ensuring seamless operations regardless of volume or demand. Our robust platform integrates over 400 micro services and business applications seamlessly, and we release a new production change every 2 hours. Personally, I think it's incredible that a regulated financial institution releases 300 deployments per month. Why does it matter? Because it enables our business exceptional agility. Insights fuel the engine of innovation, and in Multitude, data drive decisions. We have 20 years of historical data from various regions, and this is our strong asset. Our advanced analytics tools reveal insights about customer behaviors, market trends and operational efficiencies. This enables us to make more informed decisions, tailor our offerings and consistently stay ahead of the competition. We are living in the age of smart banking. While we see nowadays that AI hype is taking the world by the storm, for us, it's not a foreign technology. We are already delivering personalized experiences, fast and accurate scoring, optimizing operations and detecting anomalies in real time, thanks to the power of artificial intelligence and machine learning. This technology allows us to participate -- to anticipate customer needs and provide solutions even before they realize they need them. In today's volatile market, agility and flexibility are essential. Bernd Egger has already mentioned aspects of the financial stability and resilience. We also ensure strong operational resilience, availability, scalability and efficiency by combining our own premises and cloud computing capabilities. This technology choice not only reduces our operational costs, but also ensures that our company can quickly adopt modern technologies and is accessible anytime and anywhere. Trust is essential in digital age. Our extensive cybersecurity measures protect our customers' data from threats, fostering a trusting environment. By investing into the best security tools and practices as well as over 12,000 hours of training of our employees, we are not only protecting our customers, but also ensuring our business longevity and trustworthy reputation in a digital-first world. Multitude is not just a financial institution. It's a technological pioneer. We are deploying cutting-edge AI solutions across the entire customer life cycle. And I'm excited to share how this strengthens our company's competitiveness and scalability. The journey begins with customer acquisition. Our AI-driven strategies target high-value customers by utilizing optimized target return on ad spend and state-of-the-art value-based bidding to maximize each customer's lifetime value. Advanced AI-based models outperform outdated methods in credit scoring, providing a more nuanced understanding of credit risk. It's not just about reducing risk, it's also about unlocking potential, precisely segmenting customers and forecasting their future financial trajectories. Imagine a world where customer service is not only responsive but also predictive. 75% of queries are handled by our AI-powered chatbot, which can assist customers in 16 languages. This efficiency isn't just about cost savings, it's also about customer satisfaction. Our sentiment analysis and personalization techniques lead to deeper insights and stronger customer relationships. Our real-time active account scoring model is a game changer. This means offering credit limit increases at the perfect moment, anticipating defaults and identifying cross-selling opportunities. Finally, our AI technologies transform the collection process by prioritizing strategies and optimizing selection. We are not just collecting debt, we are preserving relationships. This efficiency increases our bottom line and keeps our customers' loyalty. We are also using AI and process automation to revolutionize our internal productivity and operational efficiency. We are -- we highly value our diverse global talent. We are curating a workforce of exceptional talents using AI-supported talent recruitment. We can identify and recruit the best talents faster from any location, thanks to automated resume screening and scoring for the right capabilities and expertise. Knowledge is power and our ChatGPT-powered conversational Internet puts this power at our employees' fingertips. By enabling them to find information, share knowledge and collaborate using natural language, we are getting new insights, streamlining communication and boosting productivity. Our Copilot AI assistant is transforming the way our engineers work by generating context-relevant code, tests, documentation and automating repetitive tasks. This not only increases the productivity but it also improves the quality of our software solutions, making them more robust and reliable. Our fully automated customer onboarding and payment disbursement processes represent a significant improvement in operational efficiency. We ensure that our services are not only faster, but also more accessible by automating these key processes, laying the groundwork for rapid and sustainable scaling across multiple countries. Finally, our machine learning and artificial intelligence solutions used for fraud and anti-money laundering analysis detect suspicious activities more accurately and swiftly, ensuring compliance with regulations and financial security. Now I would like to hand the stage over to our Chief Risk Officer, Clemens Krause. Thank you very much.

Thanks, Kornel. My name is Clemens Krause. I'm now 12 years with Multitude. And I want to introduce you to our fantastic risk world. Let us go to the first slide. This is a generic [ USP ] of Multitude. We saw it from Mantvydas of the CapitalBox. We saw it well explained by Kristjan in Ferratum tribe. Generically, it is about making lending easy, fast, convenient. We ask as little as possible from the customer and get as much as possible information in the background to make a sound and high-quality credit decision ideally instantly, wherever the local setup allows this. Otherwise, it takes seconds up to a minute, and then we have a credit decision for the customer. And then also the time to payout matters. We seek, wherever possible, instant payments. And where this is not possible, we seek a payout time within below 15 minutes. This lets the customer solve his financial challenge within seconds, within minutes and always very convenient and nice. And this makes our customer base very loyal. We have about 80% -- 78% of our business from recurring customers. And yet, in our credit decision process, we use AI-supported scoring solutions. We achieved with new customers a Gini of 55. What does this mean? A Gini is a quality measure for scoring. Zero means no relevance, no distinction possible. 100%, perfect distinction between good and bad. Benchmarks are typically 40% plus. We are 10 percentage points higher with new customers. And with existing customers, we achieved, in all markets, a level of more than 70%. And this also makes the company resilient. Revenues are stable. 80% is from recurring customers. And the payment area of recurring customers is many percentage points better than from new customers. Let us go on the next slide. So big data is our reality. We start to collect data once the customer lands on our web page. It starts with simple things, how the customer fits in the application. Is this too fast? Robots have a certain pattern to type in the data quite quickly. Human beings have a certain reason. We can see this. We can identify this to use this for fraud identification and for credit risk score. It matters whether the customer puts in his data with a copy and paste or whether this is manually typed. How long it takes and so forth and so forth and so forth. I can talk hours about this. And then sales channel, browsing behavior, marketing analytics play a significant role. Is this customer coming from a broker channel, from an affiliate? Is it coming -- is their business to our one -- to one of our web page? It matters. All sales channels have different payment behavior, different customer lifetime behavior. So we have introduced -- we are collecting this data because we are using this to select the right customers. Fraud prevention, we are able to use the IP address as far as possible, device data, geolocation. If certain requests come from a location in Africa, this is typically a fraud attempt or somewhere in East Europe. Ukraine has been a place of systematic fraud that we experienced from there. Let me move on. I'm going to deep categories. We typically use this, some fundamental piece to do data, fantastic data work, very telling and more used. It improves the Gini wherever we can use this fully by easily 10 percentage points. And the mobile wallet is also a fantastic data work. We achieved up to 0.5 million data points for each customer. And this is the basis for our decision engine and the basis of developing the customer lifetime value over time. Let us go on the next page. So many companies talk nowadays about AI and position themselves as AI experts. Here, we can say Multitude is using digital lending and AI solutions since 2005. I can say, I introduced a credit rating system based on neural networks in 1992. I got a doctor's degree for this, I got a Summa Cum Laude. [ University of Bath ] scientific publications, and this was adopted by banks and leading consulting companies. This is true pioneership combined now with me at Multitude. And here, we use AI solutions all over the lending process, in customer acquisition, I mentioned on the previous slide that channel matters for CLB. We know if a customer comes with a certain search word what the value of the customers, and we have value-based bidding. So for these customers, with this search word, we can pay up to whatever market is. We use chatbots for converting customers, but also in operations and collections. [ How it's going ], we have touched a fantastic data world. We use it in underwriting. It is the essence of all what we do, but also in other areas, in collections. We know certain customers, the pattern. We've done a sound cluster analysis. These customers paying typically a few days late, needs a reminder email and pays. This is a customer who pays only with the last letter and reminder and requires intensive work. We know the patterns, we have flexible process for this and so forth. Retention, active accounts scoring is one other very important element, especially for our core product, Credit Limit. It is working extremely well. We do not only see the repayment reasons and patterns, we also see the withdrawal patterns and the usage of this. And it's an extremely good database. We have developed the active account scoring in a sense that we can predict the payment behavior but also the churn. If customer gets less and less active, it's likely that he walks away. So we intensify communication and motivate to stay with us. And at the bottom, the customer lifetime optimization. We have developed a multidimensional model, which tells us Micro Loan customer, Plus Loan customer, Prime Loan customer, Credit Limit customer in this score class, in that score class, in this country, we have dedicated values for this and patterns. I need to move on. Next slide, please. Here, the outcome of this is payment behavior. Payment behavior is something that I monitor daily. One leading and simple KPI is the first invoice days past due date percentage. So 7 days past due date, we have maybe 70% of all invoice paid back. And the black line is the 30-day DPD counter, where we have typically 80%, 85% paid back. And this tells us over time how the underwriting was. Did we make an underwriting change in certain months? The pattern changes from one core to the next core, one month to the next month, and we can measure on this basis whether the underwriting decision, the limit increase, the new score class that we allowed was a good decision on that. You can see also operational topics. The August line has a small ditch. This was a pre-collection process where we started to -- where we try to change something. It was not good. We reversed it and it normalized in September, okay. This tells us about the quality of new business. Let's talk about the portfolio. Next slide. So all invoice DPD counters are used to see what is happening in the portfolio. This is, for example, important, if you want to know if there's a market effect. We have a challenging macroeconomic environment, how all our customers are doing. As you can see, it improves. The dotted lines show the sales set targets. We have set ourselves for this year higher targets, and we made it. We are on track with the 7 DPD line and the 30 DPD line. And on the top, you see the 90 DPD line where we achieved levels of more than 90%. More than 90% have paid back by 90 days past due date. And now I need to explain what is behind these DPD lines, the payment made. Let's go on the next slide. Yes. So behind this, we have a well-developed collection process. We have early collections for our customers. Some customers might miss to pay an invoice in time. We have a process, which starts with pre-collections 2 days before the invoice is due. We remind the customer that there's an invoice coming. We start messaging after due date again. For certain customers, we set up calls, we send letters. And only for those customers who are not responsive, don't pick up the phone, don't show any sign of cooperation, at some point in time, we need to terminate the credit contract and make the full amount due. This is happening. We have extended this over time. This is happening at around 90 days past due date. So 2, 3 invoices are typically outstanding at this point already. If we then can't get an agreement with the customer, as said, it's terminated. And then in 9 countries, we have achieved a forward flow agreement. We sell these claims for fixed price to a third-party collection company. And in other markets where forward flows are not available, we give this over to a third-party collection company for servicing. They apply their standard processes. We only use blue-chip collection companies. And once we have enough volume, we make a onetime debt sale. In terms of numbers, the recoveries with forward flows were, in 2022, EUR 28 million, and the recoveries from onetime debt sales were EUR 31 million. We achieved values between 40% and 80% for those defaulted claims, which is a pretty high percentage, more than most people expect because our claim sizes are typically small, customers can recover on this. And this gives us also a high level of robustness. I need to speed up a bit. Next slide. So here just shortly, the structure of our credit portfolio. Dominant is Ferratum and then Sweep and CapitalBox are slightly smaller. In Ferratum, Credit Limit is the leading product; but also in CapitalBox, we have now almost 50% of business volume with a so-called Credit Line, which is a related product to the Credit Limit. And geographically, we are, as a Finnish-based company, quite logically strong in the Nordics. So the Nordics, a very stable political and economic region of Europe is our geographical gravity center. Let's move on the next slide. So this is a slide which bridges from the finance part of Bernd Egger. We have, for over years now, a trend of decreasing credit losses over net AR. It's also called loan loss ratio. This trend continues. It has to do that we develop our credit products, we get away from micro loans to more sophisticated lending products. And together with more and more recurring customers, we can improve our credit loss over time. Next slide. Most interesting on this slide is the left part, where we can see the portfolio broken down in the so-called others 9 stages. Stage 1 is performing loans up to 30 days past due date, and this is the majority on our balance sheet. Stage 2 is underperforming loans, loans that get overdue by more than 30 days. And then Stage 3 is loans that get defaulted typically after 90 days past due date. And you see the volume's quite small and it's decreasing over time to our successful and better and better working debt sale processes. Let's go to the next slide. This is now the same breakdown in stages, but now is gross amounts. So the nominal and outstanding is bigger than what you could see in the balance sheet. And on the right side, you have the according risk provisioning reserving percentages. And you see that at the end of Q3 this year, the reserve percentage for performing loans is 5%. This means if we pay out a EUR 1,000 loan, we reserve on the right away EUR 50 as front-up reserve. We haven't seen any revenues from this loan yet. And this is the kind of expected credit loans based on PD and LGD. And you can also see the percentage has gone down because we have improved on both the PD and the LGD. And the other element that I want to highlight shortly is reserving percentage for nonperforming loans is above 60% and is matching to the recovery rates and forward flow and debt sale process that we record every year. Last year, it was 15 onetime debt sales. This order focus every year, and very important to be there well calibrated with market values and recovery curves. Let us move on. Next slide. So the takeaways that I want to give you is underwriting is truly state-of-the-art and AI driven. The payment behavior is stable. It does not translate every quarter into credit losses in the same way. Midterm, they are perfectly correlated. Short term, you have in our credit loss model, some volatility, which has to do with the volume of nonperforming loans, then they get sold off. We have a release of reserves and so forth. There's some natural volatility over time. Most important is even in current times, our payment behavior is stable. The credit portfolio is well diversified with good products, many customers in good geographies. And the assets are high quality, well reserved, well risk provisioned. And with this pattern of small consumer lending and small business lending, we have a high resilience to difficult market conditions as well. And now, I would like to pass over to Shaun Vella, our Head of HR.

Thank you, Clemens, and thank you for joining us today for Multitude's Capital Markets Day. So as Clemens said, I'm Shaun Vella. I'm the Chief HR Officer at Multitude, leveraging 2 decades of expertise in human resources across various international industries. Having joined Multitude 5 years ago, I feel privileged today to be the one presenting the heartbeat of Multitude, our people. So it's crucial to recognize that in today's economic landscape, our human assets is what differentiates us from our competitors. Our people are the driving force behind our profitability and enhancement of shareholder value. Today, we will journey through our commitment to actively engage both employees, our leaders and also our dedication to recognizing and fostering their development and the pivotal role that diversity, equity and inclusion plays in the bedrock of our success. As Jorma and Lasse already highlighted earlier, our approach to talent acquisition is a continuous evolution. So we don't just seek talent where it is convenient or it is easy, but we seek it where it thrives. A few years ago, while simultaneously navigating a severe macroeconomic environment, we underwent a significant shift towards an enterprise agile model and also embraced a hybrid way of working. And true to our nature of inclusivity, our decision to adopt a hybrid working model wasn't made behind closed doors in some boardroom, but we engaged our people through a number of surveys and discussions on the way of work that best suits us at Multitude. The results were crystal clear at the time, so a hybrid model aligns perfectly with our values. And this cultivates a culture where every individual feels that their voice matters, which is the fundamental strength for us here at Multitude. The shift inadvertently has further enabled us to source the global talent irrespective of geographical boundaries. So at present, our team spans continents with over 700 talented individuals from over 40 nationalities, distributed across more than 25 locations with significant presence in Malta, Slovakia, Germany, Finland, Lithuania, Philippines, Estonia and Sweden. So in essence, our commitment to embracing diversity is a cornerstone of our approach to innovation, growth, scalability and sustainable success. So together, as we continue to evolve, our people remain at the heart of what makes Multitude truly exceptional. So in this slide, we talk a bit about gender diversity, we talk a bit about our talent. And as Multitude, we are proud of our differences, being it gender, being it identity, beliefs, values, skills, experience and socioeconomic factors. So our commitment to diversity extends beyond the checklist. It's about embracing the richness of experiences that our employees bring to our teams, making us stronger and more dynamic. We understand the importance of quotas and for us, more importantly, the essence of creating an inspiring and open environment. Our pledge is to cultivate a workplace where every individual feels valued, believes they can make a meaningful impact and most importantly, have an equal opportunity to deliver their best to thrive and to grow within Multitude. As you can see at the top of the slide, currently, our workforce is composed of 44% female and 56% mix, demonstrating our dedication to gender equality in a FinTech environment. Within our managerial range, we have 56% female managers and 64% male managers with a Board composition of 33% female and 67% male. Looking ahead, our target is to achieve a 38% female composition in both management and the Board by 2025. Additionally, as part of a number of initiatives in the diverse demand, we commented on internal -- where over 79% of our team defines diversity as encompassing multiple races, ethnicities, gender and nationalities. 83% feel that Multitude genuinely values a diverse and inclusive environment. This, for us, reflects not only our team's understanding of diversity, but also their confidence in the inclusivity that we strive for at Multitude. It's also a testament to our shared commitment to fostering a workplace that embraces and celebrates differences. And we move down to the bottom part of this slide. Here, we are looking at our talent pool, right? And our talent pool spans diverse disciplines with over 40% of our talent coming from technology, risk and data, which mirrors our business model, demonstrating how we strategically allow our teams to effectively serve our customers. Moving on to development. We probably witnessed [ 80 ] employees ascend to new heights over the last 12 months within various fields across the company. Additionally, in a recent internal learning and development survey, 75% of our employees feel confident that they can develop their careers with Multitude. This exemplifies the significance to place on fostering talent from within, illustrating that the success of our people is intricately tied to their development within Multitude. Highlighting the strength and stability within our work. Of course, our team has an average tenure of 3.5 years, which if you look at the industry standard of FinTech, it's around 18 months to 2 years. Looking forward, our aim is to further enhance our average tenure, aspiring to surpass the 4-year milestone. This ambitious goal reflects our ongoing commitment to providing an environment that not only attracts soft talent, but nurtures their long-term professional growth within Multitude. And this snapshot reflects our commitment to diversity, inclusion and the continuous evolution of our workplace that values every individual's unique contribution. Good. If we go to the next slide, we'll talk a bit about people happiness, where since 2020, we have utilized the employee Net Promoter Score as a future metric to gauge the happiness and satisfaction of our team. This gives us a clear understanding of how our people perceive the company, highlighting both areas of strength and additionally, those that need improvement. As we navigated, as you can see the diverse macroeconomic landscape transitioned our organization into an enterprise agile model, we initially witnessed a dip in our eNPS, which was expected during this transformative period. Today, we stand resilient, having transitioned from the norming phase and now reaping the rewards of a performance-oriented stage. Looking ahead to 2025, our target is an eNPS score of 25. So through a series of employee surveys, our workforce has expressed their appreciation for our hybrid work model, emphasizing factors such as work-life balance, growth opportunities, flexibility, autonomy and a thriving culture built on strong values, exceptional teams under shared vision and mission. In a sense, our eNPS journey mirrors our organization evolution, so from challenges and transition to resilience and ultimately, a stage of performance excellence. As we continue to listen to our team, adapt to their needs and enhance our employee experience, we are confident in our trajectory towards achieving our 2025 eNPS target, which further solidifies our position as a workplace where talent thrives and satisfaction remains. Good. Moving on to the next slide. I think we need to go a slide back, please. Can you move on to the next slide, please? Good. So thanks. Thanks. So as Jorma already emphasized earlier, our commitment to 5 key values serve as the very essence of our belief system, acting as the guiding compass for our decision-making process. So to keep our values at the center of all that we do, we took a further step with our strategic HR framework, where in a collaborative effort with our employees, we identified our core competencies, delving into both internal and external teams that was significant resonance with the diverse landscape of Multitude. This process serves as another example of how we seamlessly integrate diversity and top talent development. Our top talents from around the globe actively participated in this exercise, which provided us with a very good feedback on the competencies driving their success. Our core competencies were born through the integration of diverse perspectives. So what are the core competencies? So for us, the core competencies are the DNA, so the essential ingredients of our success within Multitude. They offer clarity on what Multitude accepts from all our people across the globe in both their parents and also their [ future roles ]. So as a Multitude employee regardless of location, the core competencies remain the same. They are not just driving principles, but they also direct us on where to invest and allocate resources, how to measure and monitor our progress and ultimately, how to drive the vision that my colleagues just shared before me. So the core competencies are being embedded in all of the people-related processes, including talent acquisition, internal people benchmarks and unified measures, training and development as well as succession planning. So these success behaviors not only leads to individual success but also contribute to the overall success of Multitude. In essence, we are looking to embed the core values and competencies, which is a dynamic process that this also reflects our adaptability, inclusivity and dedication to fostering an environment where every individual can thrive and contribute to the collective success of Multitude. So here, we wanted to also highlight how we look at talent, right, and the three key pillars that drive our talent strategy. So firstly, so it is starting with the nurturing of our growth, where we believe in building from within. So our internal development programs are designed to nurture and grow our talent and all our employees additionally, they have access to over 30,000 on-demand courses that support development of our core competencies and also technical skills that make our team excel. Additionally, we have internship programs and annual leaders meet-ups that further contributes to fostering the culture of continuous growth. Moving to global talents. Obviously, we spoke already about this earlier. So we have undergone an organic shift in perspective over the years, especially with the adoption of enterprise as a way of work and hybrid working model. This enabled us to seek the best talent irrespective of geographical boundaries, where we've transitioned our hiring strategy from center hubs to a more global approach. This strategic shift ensures that we tap into diverse pool -- diverse skills and perspectives worldwide, which further fortifies our diversity to fuel growth, innovation and scalability. Lastly, as Jorma already mentioned a lot as well when we talked about AI and automation, this also are two powerful tools that we see integral to optimizing our resources. So this strategic incorporation of AI and machine learning into our operations is becoming increasingly central to our processes. So by harnessing the power of automation and AI in the people processes as well, we empower our leaders to lead more effectively, while enabling our talents to focus on value-added tasks beyond the capabilities of automation. So for us, these two key pillars form the cornerstone of our talent strategy, which embody our commitment to nurturing and [ placing ] global perspectives and additionally, leveraging cutting-edge technologies to drive both our organizational efficiency, innovation and growth. Last but not least, I wanted also to highlight how we incentivize our people. So we have a passion for performance. And as seen from the presentations of my colleagues before me, we take pride living up to our commitments. So over the years, we also have strategically crafted incentive plans that are aligned with our vision, effectively cascading our strategy and providing our performance to new hires. Our incentive structure compromises both short-term and long-term components, each tailored to support our overarching goals. Starting off with the short-term incentive, our biannual cash incentive then aligns leaders and business drivers with targets, both financial and strategic, cascaded from the global strategy via periodic objectives and key results. This approach ensures that our teams are strategically aligned with the broader organizational objectives. Turning to our attention to the long-term incentives, we have two distinct programs: the Matching Share Plan, which is available for all employees and the Performance Share Plan, specifically designed for leaders and business drivers. So in 2021, introduced the Matching Share Plan, which provides all our people with the unique opportunity to become shareholders and share in the company's success through an increase in share value. Additionally, the company grants 3 shares at 1:1 ratio. So far, our employees can invest a percentage of their gross salary in Multitude shares twice a year, with a 2-year holding period. Since the inception of the program, our employees have collectively invested over EUR 1 million, which demonstrates the commitment and belief in our shared success. The second long-term incentive, our Performance Share Plan offers our leaders and business drivers an opportunity to earn company shares as an award, which is based on the targets that increase the shareholder value for the performance period. So our performance-driven incentive structure is a testament to our commitment to excellence, which ensures that our teams are not only motivated in the short term, but also actively invested in the long-term success and growth of Multitude. So before passing on to Nontokozo, I wanted to conclude by thanking you all for joining us today, where we're definitely the heartbeat of our organization, our people; where in a dynamic market, our human assets set us apart driving profitability and ultimately, shareholder value. Today, we explored our commitment to diversity, talent development and the performance-driven culture. Our workforce spanning over 40 nationalities, which embodies the richness of experiences that fuels our success. In conclusion, Multitude is not just a company. It's a community where every individual's contribution matters. So our commitment to diversity, talent and performance positions us for sustained success in the evolving landscape. Thank you for being part of our journey. I would like to introduce now my colleague, Nontokozo Khumalo, our Group ESG Officer, who will take you through our ESG journey.

Thank you, Shaun, for the presentation. So I will start talking about how we are responsible financial services provider for the overlooked customer. My name is Nontokozo Khumalo. I'm the Group ESG Officer at Multitude. And just a little about me, I joined the company at the end of 2021, at the very start of our ESG journey to build up our approach and programs, having spent some time in the traditional banking and asset management sectors, working on sustainability. At that time, there was an increased interest in social and environmental issues with everyone coming out of the COVID pandemic, and also Multitude was positioning to engage more on social impact. It's been a tremendous journey laying the foundation alongside my colleagues across the globe, and I'm excited as we now chart our next phase as an ESG-driven FinTech, as Jorma mentioned earlier. On this slide, you can see basically that our business activities at the heart generate positive impact. And I'm going to start a bit about that, talking about how we actually show positive impact creation with social value drivers that you can see on the left. And then on the right, you can see our impact. Our value to society is actually derived from diverse skills that Shaun has also mentioned, technology partnerships as well as responsible customer selection. Our commitment to sustainable value creation is led by our vision and mission and demonstrated by an inclusive product offering that minimizes environmental impact. Our three ESG priorities are to future-proof our environmental impact, ensure a social parameter aligned access to financial services and embed governance that truly transforms ESG performance to align with the global transition. Multitude is well positioned, offering digital, paperless, cardless banking and services and also utilizing cloud technology, as was mentioned earlier. And also, we are, of course, working in our hybrid model for all our colleagues across the world. Through our value drivers and our product offering as well as these ESG priorities, we're responsibly serving the overlooked customer whilst contributing to broader societal objectives of skills and local economic growth. Moving on the next -- okay, that's fine. On this slide, you can see our three strategic priorities and goals for 2025, social impact is at the center of our approach. And this means having in place mechanisms to improve the -- our employee and customer well-being. At the very left is our environmental focus, and we are cognizant of the rising imperative to address environmental challenges. Our aim is really to be part of the solution, understanding our impact on certain targets. Our environmental and social objectives can only be achieved through good governance. So to this end, what we have been doing at Multitude is embedding ESG-conscious practices with governance fostering transformation, as you can see on the right with our 2025 goals. Then moving on to the next slide, environmental. So what we were doing about setting, future-proofing environmental impact, we want to understand this impact. So in 2023, what we started doing was reporting on our carbon emissions. We took up the hard work first. So we started tracking our small business lending impact, and the relative emissions are seen on the table on your left for 2022. We've been gradually addressing SME data gaps and expect to continue to make progress in the coming months. Still with regards to SME lending, we're setting a relative target of 20% reduction of emissions per EUR 1 million financed by 2025. This is from a level of 203 tonnes in 2022. We're very cautious of the SME target setting due to the existing data constraints in this customer segment whilst also being very proud to be one of the leaders. We're broadening our financed emissions scope of coverage to larger businesses in the warehouse lending segment. And we've recently joined the Partnership for Carbon Accounting Financials, PCAF, which will help to further strengthen our efforts with regards to financed emissions reporting. In our operations, we are reducing emissions by 20% for 2025 and aiming for net-zero spend-based emissions by 2035 and 2030 for our global offices with regards to electricity and heating. Then on planned actions to meet our targets shown on the right, in addition to PCAF membership that I've already mentioned, our actions will now focus on having a deep understanding of our businesses and corporate lending as well as steering actions towards positive outcomes. Then moving on to the next slide. Our next priority, social perimeter line access to finance. At Multitude, the well-being of our customers and employees as a central pillar in our approach, and we believe that the ability to actually be a responsible financial services provider is most evidenced here in the center. This means not only enabling socially inclusive products and services, but also ensuring that we protect vulnerable customers through responsible lending and customer education. So on the left on the table, you can see our key social metrics and targets for 2025. Our largest business unit, Ferratum, pioneered the Responsible Lending Index to monitor customer protection. The Responsible Lending Index comprises three components relating to 90 days past due, a customer survey that actually addresses topics like transparency on product terms as well as gender diversity outcomes mentioned earlier. And then the index score maximum is 5 and currently stands at 4.3 with a target of 4.5 shown on the table. Our employee well-being is monitored as well with the key metric being eNPS that Shaun also spoke about, and we're very proud of our progress towards improving the eNPS. We're also monitoring diversity and benefit from a diversity of skill set, nationality, gender and age. We've set targets to have 38% of women on the Board by 2025, shown here in the table. And this is currently at 33%, which puts us on track to meet our target. Our actions going forward are about strengthening the monitoring of well-being of stakeholders and also leveraging the knowledge that we have across our teams in order to drive insights-driven approach with regards to addressing stakeholder well-being. Then finally, when it comes to governance, early on in our ESG journey, we recognize the pivotal role of governance when it comes to embedding ESG. So we immediately set up the ESG Steering Committee which currently comprises some leadership team members and is cochaired by the Group CEO, Jorma. This laid the foundation for ESG to really be set, told from the [ top led ] actually, with regards to how we manage ESG across the company as well as transparent communication across stakeholders, also supported by the Board, supported integration. And then these activities will continue to be strengthened to drive further embedding of ESG, addressing topics that you can -- some of which you can see on the right, such as sustainable finance and materiality determination amongst others. Then in terms of the next chapter of ESG in the next slide, we are basically focusing on how we can be more conscious when it comes to evolving stakeholder needs and the transformative of our business. This means where we previously focused on defining policies, we will now focus on strengthening monitoring, defining impact and mitigation actions. So we know that to be a FinTech that truly provides responsible financial services for the overlooked customer, we need to be able to demonstrate future-proof products and services to measure what matters and to show leadership in embedding ESG. Thank you. I will now hand over to Jorma.

To all speakers, it has been a long day. And now we are moving to the final part of the presentation, which is the questions and answers. We have received tons of questions. But as we have limited time on our hands, we can only take a few questions at this time. So if we are not able to answer your question now, please let's take a separate occasion to go through those questions.

[Operator Instructions] Okay. Now we got right away a few questions here. And I think maybe if we take the first question from Marius Fuhrberg from Warburg.

Maybe let me begin with the first question on your integration of SweepBank into your other tribes now. And I'm particularly wondering why you haven't took the step early on and what's prevented you from distribute your SweepBank products across basically all other markets and regions before. And what makes you the decision to do it now?

Marius, maybe I can take over that one and then afterwards, Bernd, maybe you can support here and Kristjan as well. I think the -- Marius, it's a great question. It's -- we have -- we're doing the 2.5 years back in the our Capital Markets Day. We make the decision that we want to fill in the 3 different independent customer segment and fill in the own branding for each of those customer segments, and try to serve as an independent business unit on those 3 different customer segments as well. And on this point, we practically decide that the SweepBank customer offering is a little bit different, and it's running by different customer segment. And our cross-selling activities between those has been mainly in the -- with the sleeping customers or the customers who are not very -- we call like inactive customers. So -- but not with the active customer base. We don't have a doing like a cross-selling between those. And now, of course, we have analyzed this situation, and we have a look in the opportunities, what we have it, and we have realized that actually, we leave a lot of money on the table and not -- not to do in the cross-selling here the customers in the earlier point that they come to inactive. And that's the reason why we decided to make this change. This is the one of the reason. This is not only reason why we're doing this change, because this change is it definitely gives the opportunity now to merge the customer journey in the SweepBank customer and the Ferratum customer very seamlessly together, so we can really benefit in the cross-selling opportunities there. And what is the benefit for the CapitalBox part is totally new things because practically, they don't have any banking service there in the customer segment today. So they can practically get what's a new product, what they can offer their customers and doing the cross-selling on the customers, the SweepBank offering as well. So I think this is a CapitalBox. It's a big winner in that case as well. As like -- I think it's -- everybody is a winner there. Why we didn't do it earlier that one? I don't believe there is like a clear answer that, okay, that is the reason why we didn't do this before. We have monitoring the situation quite a long time, and we decide that now is the right time to do in that one team was ready and we see the so much energies there. Like you maybe remember that the last year, we made in the SweepBank tribe, we're doing a quite big cost-saving program and a little bit outcome of that one, we realized that, okay, actually, it's maybe even more efficient and scalable that we take this team and resource and technology and merge with the jointly in the use in the port one there. So that's the more or less the situation there. Bernd, do you want to add something or the Kristjan.

I would agree to that. I mean the timing is an issue and focus is an issue. We can't do everything at the same time. Now is absolutely the right point in time. Ferratum has been focusing on establishing the core target markets to exit here and clean up a little bit is now perfect timing. CapitalBox, as we have certainly noticed in the presentation, a lot of energy, a lot of drive in the organization currency, excellent management in place, and that is just the right point in time to get that going now for the other businesses.

Good. Marius, do you have any follow-up questions? Or should we move to next?

Yes, if there's the opportunity, then I would ask one more question. With regards to your further regional expansion, as you pointed out that in your total addressable market, about 50% sales from the U.K., Germany and France. And so I'm wondering about your road map with regards to your further regional expansion and also with regards to your -- or in this context, your total addressable market in terms of portfolio volume -- potential portfolio volume, do you expect this to show a similar or even better risk profile compared to your current portfolio volume?

Good. Maybe if you turn to accept, I will start and you will be following on that one. And then maybe everybody else the leadership team you can support if you have any feedback there, Kristjan or Mantvydas. One of our investors, they have raised the question quite often is our total addressable markets. We have used this method as a like internal purpose and not the lots of like external purpose to share in that one. And this is that today is the first time when we share this for the investors and stakeholders as well. Maybe one step back before how we calculate the total addressable market. So we have -- each of those 3, we have a little bit different computing logic behind there. But we practically look in the example of Ferratum part. We look in the market size, we look at the population, we look at what is the consumption-driven lending the whole market in the country specific. We split all markets country specific. We looked at the different local specific data as well. Then we look in our position there, and that's where we can be the market potential there. The CapitalBox, we looked a little bit different. There, we practically keep it look in the total SMEs under the total lending. We looked at what is the overlook by other traditional banks, then we applied there in our own scoring principles and our scoring the parameters and only that are the segment that we are looking at. By the way, same logic in Ferratum as well. And Multitude through bank, it's a wholesale banking. It's a little bit a combination of those logic. That's the way how we're coming out of those numbers. Now if we look at the Ferratum part, it's Ferratum market share as a original Ferratum business tribe. The market size was around EUR 7 billion, and that the market share was formed from that one, around [ EUR 788,000 ]. So they have a little bit less than 10% market share they own businesses. However, now when we extended the business offering or we extend the offering for the SweepBank products, it's actually extended our total addressable market in Ferratum but in CapitalBox as well. And basing that one, our current share of that total addressable market was coming a little bit down, and what is indication for me is that we have actually lots of opportunities there. We are a little bit like a new starting point today, where we are, and because we practically scale down our market share because we redefined our definition of the market. And the definition is a little bit larger. And that's the reason why our current share is look smaller. And for us, this means that we have a huge long runway ahead of us to tap in on those markets. Bernd, do you want to add?

No, totally agreed to this point. And I guess there was another question, if I understood that correctly, addressing our view on risk profile going forward. Have I understood that correctly?

Yes. Especially whether your growth in business addressable market gets your current profile? Or is it [indiscernible] worse?