05 April 2022

PeerBerry business partners presented business figures | Summary of the Independent Supervisory Board meeting

The first meeting of the Independent Supervisory Board was held on Friday, April 1st. The two-hour meeting was attended by investors (members of the Independent Supervisory Board), representatives of PeerBerry, and PeerBerry’s business partners.

During the meeting, Aventus Group CEO Andrejus Trofimovas explained the status of Aventus Group, how companies are developing in different markets and presented key figures of Aventus Group’s business.

Aventus Group in total numbers on 2022-03-30 (Forex on 2022-03-30 by market price)

• Total portfolio – EUR 193,2 M
• Good principal portfolio (no delays and delays of up to 15 days) – EUR 84,0 M
• Total obligations towards PeerBerry investors – EUR 61,3 M
• Real Estate (own property) – EUR 17,2 M (purchasing price, the market value before the war was over EUR 30 million)
• Cash in banks – EUR 8,7 M
• Assets (good principal + real estate + cash) – EUR 109,8 M
• Equity – EUR 48,6 M

Aventus Group without Ukraine and Russia

• Total portfolio – EUR 62,9 M
• Good principal portfolio (no delays and delays of up to 15 days) – EUR 41,1 M
• Obligations towards investors – EUR 29,2 M
• Cash in banks – EUR 4,0 M
• Assets – EUR 45,1 M
• Equity – EUR 15,9 M

Ukraine and Russia

• Total portfolio – EUR 131,0 M
• Good principal portfolio (no delays and delays of up to 15 days) – EUR 42,9 M
• Obligations towards investors – EUR 32,0 M
• Real Estate (own property) – EUR 17,2M (purchasing price, the market value before the war was over EUR 30 million)
• Cash in banks – EUR 4,7 M
• Assets – EUR 64,8 M
• Equity – EUR 32,8 M

Ukraine

• Total portfolio – EUR 73,7 M
• Good principal portfolio (no delays and delays of up to 15 days) – EUR 18,9 M
• Obligations towards investors – EUR 12,5 M
• Real Estate (own property) – EUR 6,8 M (purchasing price)
• Cash in banks – EUR 4,0 M
• Assets – EUR 29,7 M
• Equity – EUR 17,2 M

Russia

• Total portfolio – EUR 57,3 M
• Good principal portfolio (no delays and delays of up to 15 days) – EUR 24,0 M
• Real Estate (own property) – EUR 10,4 M (purchasing price)
• Obligations towards investors – EUR 19,6 M
• Cash in banks – EUR 0,7 M
• Assets – EUR 35,1 M
• Equity – EUR 15,5 M

Aventus Group’s forecasted Net Profit 2022

• Aventus Group without Ukraine and Russia – EUR 15,6 M
• Russia – EUR 9,0 M

Aventus Group today

• Employees – 1700
• Profitable markets (active cooperation with PeerBerry) – Poland (4 companies), Kazakhstan (3 companies), Vietnam (1 company), Moldova (1 company, 2 types of products)
• Business in Russia (3 short-term lending companies and real estate business)
• Business in Ukraine (3 short-term lending companies, 1 installment, 1 leasing, and real estate business)
• Smaller companies currently in a passive development stage – Romania, Sri Lanka, Philippines, India, Kenya, Vietnam (new company)
• Preliminary profit in March – EUR 850K, April’s profit forecast – EUR 1,8 M

Gofingo Group

• Currently, Gofingo Group lists no loans on the PeerBerry platform. The Group focuses on its profitable business in the Czech Republic and Vietnam.
• Gofingo Group plans to repay about EUR 300 000 of war-affected loans in Ukraine monthly.
• The total portfolio of Gofingo Group in Ukraine currently amounts to EUR 14,4 million.
• Gofingo Group’s obligations for investments in Ukrainian loans amount to EUR 9,3 million (EUR 8,8 million are short-term obligations, EUR 0,5 million are long-term obligations).
• Currently, Gofingo Group lenders have EUR 1,9 million on accounts (EUR 0,8 million on accounts in Ukraine).

Summary of the meeting:

• Currently, Aventus Group in Ukraine obligations towards investors amount to EUR 12,5 M, in Russia – EUR 19,6 M. Gofingo Group in Ukraine obligations towards PeerBerry investors amount to EUR 9,3 M.
• EUR 8,7 million of war-affected loans have been repaid from Group’s cash reserves after the war started. The nearest coming repayment of war-affected loans is scheduled for this week. At least EUR 1,2 million will be used from Group’s profits to repay a part of war-affected loans. The proportionality method will be followed when repaying war-affected loans, i.e., the higher the share of investments in UA/RU loans, the higher the amount of the repayment. The aim is to gradually return part of UA/RU investments to all investors.
• Excluding one of the most profitable markets – Ukraine – Aventus Group remains one of the most profitable and one of the biggest market players.
• Currently, no transfers are available from the Ukrainian and Russian markets.
• There is limited debt collection (about 15%) possibility in Ukraine while the country has imposed a moratorium due to a force majeure situation. PeerBerry business partners in Ukraine are not working since the war started.
• Business in Russia is locally functional, but no transfer of funds is possible from the country.
• Currently, there are no Ukrainian and Russian loans with delays of more than 60 days on the PeerBerry platform, which means that interest rates are still being accrued for investors.
• If the business in Russia will continue keeping a good development trend, the RUB exchange rate will stabilize and there will be normal conditions to convert RUB to EUR, Aventus Group may consider continuing accrual of interest rates/paying interest for the further period of Russian loans delay (more than 60 days late) until the transfer of funds from Russia is possible.
• Aventus Group and Gofingo Group are about to gradually repay war-affected loans on a monthly basis (not once per quarter as planned a month ago).
• After a thorough assessment that the overall business situation is stable, Aventus Group may consider repaying Ukrainian long-term loans under the initial schedule of each loan (as short-term loans will also be gradually covered monthly).
• The conservatively planned repayment period of war-affected loans is 24 months. After a transfer of funds from Russia and Ukraine is possible, this period may decrease.
• The secondary market question on PeerBerry remains open. Pros and cons still need to be responsibly assessed as part of investors (depending on the country of residency) will have to pay additional taxes (for the secondary market to be present on the platform). PeerBerry also needs to assess its long term-strategy as most long-term loans were/are planned to be offered on a separate regulated crowdfunding platform Crowdpear (owned by the same shareholders) where a secondary market will be available.

The next meeting with investors is scheduled for the second half of April. The agenda of the coming meeting includes an overview of Q1 2022 results and business development trends.

The independent supervisory board on PeerBerry is a group of 30 elected investors who have a significant amount of war-affected loans in portfolios. The independent supervisory board has been established by PeerBerry to monitor lenders’ performance and to communicate the latest updates regarding the recovery of war-affected loans from Russia and Ukraine.