29 March 2022

Extraordinary March was profitable for Aventus Group

Key message:

• Aventus Group has stabilized turbulences in the business caused by war,
• in March, Aventus Group operations were profitable in all established markets,
• Aventus Group remains one of the largest players in the industry,
• Aventus Group will seek to make gradual repayments of war-affected loans every month,
• a unique time to earn higher profits by investing in profitable businesses.

Dear Investors,

To keep you updated, I want to share a short overview of our activities and business results during the first full month of the war in Ukraine.

For the Aventus Group, the month turned out to be very active and, oddly enough, positive and profitable. Judging by our current business figures and prospects of our companies in different markets, I can boldly say that the “emergency landing” was successful – we have stabilized the situation caused by war to our business. Now we need to follow our development strategy and the repayment plan for war-affected loans.

Business optimization

As shared earlier this month, after the war started, to optimize our business we have reviewed all business costs very thoroughly. After reducing our team, Aventus Group remains one of the largest businesses in the industry that currently employs up to 1700 people.

To manage possible new risks and to understand war effects on our overall business better, we have revised our startups and decided temporarily to keep them in a “life support mode” without additional funding. After we see the situation is stable, we will continue developing our smaller and relatively new companies in different markets to grow and diversify our business even better.

Business results

The most important aspect is that in this extraordinary March we made a profit in absolutely all Aventus Group companies that list loans on the PeerBerry platform. All companies (excluding Ukrainian companies of course) show good performance a very positive development trend.

In a very short time, we organized a well-coordinated and effective work on collections in our companies in Ukraine. Under conditions of war, there are no thoughts about earning money in Ukraine – our goal is to recover at least part of issued loans so that we can settle with PeerBerry investors. It is worth mentioning, that a part of our clients are steadily extending their loans in Ukraine, generating, albeit small, but income there.

As of today, the equity of Aventus Group companies is EUR 38 million, considering the re-evaluation of the cost of own real estate, new exchange rates, and the write-off of most of the portfolios in Ukraine. As of March 28, Aventus Group companies had EUR 8.3 million on the accounts.

Temporary challenges

Current challenges remain the same:

• we are still looking for the possibilities and the most correct way of money transfer from Russia and Ukraine,
• inability to conduct normal business operations in Ukraine which would significantly speed up the process of repayments of Ukrainian loans.

Repayments of Ukrainian and Russian loans

As previously announced, in the first week of April we will dedicate EUR 1,2 million to repay a part of Ukrainian and Russian loans to PeerBerry investors. Our initial repayment plan was to gradually repay war-affected loans once per quarter, but we will look for opportunities to gradually reduce our obligations every month.

The end of the war and the lifting of restrictions on money transfers from Russia and Ukraine would significantly speed up the repayment process. Until restrictions are in force, we will use about 50% of the Group’s profit to repay war-affected loans.

After a partial repayment in the first week of April, in total, EUR 10 million of war-affected loans will be already repaid to PeerBerry investors (since the beginning of the war, both Aventus Group and Gofingo Group together).

A unique time to invest

We understand that war in any country in our continent brings uncertainty and even fear. On the other hand, now investors can benefit a lot by investing in the healthy business in countries that are not affected by war. The uncertainty caused by the war, has shaken (has unbalanced) investment markets, and made the P2P industry react and raise interest rates for investment in loans. Every crisis is also an opportunity. We see this war crisis as a unique time to earn higher profits by investing in profitable businesses now, as interest rates will get back to a decreasing trend after the war ends.

In the middle of April, we will have calculated results for Q1 2022, and I will share with you more detailed results/numbers of Aventus Group companies.

If you have any questions about Aventus Group business, feel free to contact me at [email protected].

Respectfully yours

Andrejus Trofimovas, CEO of Aventus Group