Mobile financial supermarket and payment solution

1. Digital banking
platform
Future of retail
banking
Investment opportunity

2. Strictly confidential
Digital Bank is the future of retail banking
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FUTURE: Electronic distribution
+ reduced number of branches
to support digital distribution
PAST: Physical Distribution
Branches + ATM
Brett King, author Bank 3.0
“Banking: no longer somewhere you GO but something you DO”
MOBILE
TABLETS
INTERNET
CALL CENTER

3. Strictly confidential
US: Digital banking is the fastest growing distribution channel
Key trends in retail banking
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Payments
Credit cards
Loans
Deposits
Insurance
Bonuses
Advertising
SERVICES:
Partner banks
UBANK is the leading mobile banking platform offering most of retail banking products
to its users
UBANK business model
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Others
Banks
registered users by 2018:
20+ mln
high quality targeted
audience
Registered users

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3m+ registered and about
1m active wallet users
$8M raised from Runa CapitalMobile wallet release
Pre-installation and
agreement with Fly
Starting from 2006 the team
have been launching multiple
mobile application projects
Pre-installation and
agreement with Samsung
UBANK trademark registered
in 2011
2012 2013 20142006-2011
History and key facts
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Pilot launch of card program
in Feb 2014 with Privatbank,
20% conversion success
New strategic banking
partner for cards distribution
project in Russia
Launch of financial supermarket
(Fall 2014)
White label projects
Substantial tax preferences Pre-Installation agreement with
Huawei

6. Strictly confidential
White label
2. Distribution:
Preinstalls and In-box
Cards and Ads
3. Communication:
Direct Channel and
Big Data
Cards distribution
Financial supermarket
Mobile wallet
 Scale: up to 10 million
smartphones a year
 6+ years contract
 Global distribution with Fly,
Huawei
 Exclusive wallet app
 Home screen installation
 No option to delete
 Upgrade into any application
 Push notifications to users
 Targeted offers based on user
profile and history of
transactions
 Geolocation, device
modification
UBANK platform
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1. Product:
Retail banking solutions
Status: final stage
Status: middle stage
Status: done
Status: beginning

7. Strictly confidential
WORLD WORLD
 Founded in 2003 in the UK, FLY focuses on the
markets of Russia, Ukraine, India, Europe
 Plans with UBANK to cover European
countries: Denmark, Norway, Poland, England,
Spain, Sweden, France, Germany etc.
 #3 smartphone producer worldwide
 Focus on international expansion from 2014
APPS + CARDS APPS + CARDS
 5+ mln smartphones sales each year
in Russia
 Top 3 selling brands in Russia in 1Q2014
(market share - 11.3% in natural terms))
 Became №1 in mid Android smartphone
segment in Russia 2014
RUSSIA
 1+ mln smartphones sales each year
in Russia
 Started in 1997 in Russia
 Top 5 leading smartphone sellers in Russia
 10 stores to open in 2014
Unique exclusive agreements (Russia+World)
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RUSSIA
APPS
RUSSIA
WORLD
 5.5 mln smartphones sold in Russia
in 2013
• Leader in Russia in 1Q2014 (20.6% market
share by volumes)
• Doubly exceeds sales of Apple
• # 1 smartphone producer worldwide
• Samsung shipped 320 mln smartphones in
2013, showing huge increase from 2013 mln in
2012

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• Credit rating (scoring)
• Spending behavior pattern
• Loyal user base financially competent
and ready to accept new products
from UBANK
Growth strategy:Value Creation:
• Unique user base with behavior pattern
and accumulated statistics represent
attractive asset for strategic financial
players
Monetisation and strategy
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USER DATABASE
CARDS
FINANCIAL
SUPERMARKET
MOBILE WALLET
WHITE LABEL
SOLUTION
GLOBAL
EXPANSION (in 2015)
• Lead generation and marketing fees
• Lead generation and marketing fees
• Anchoring the client and statistics
• Up to 300 banks that still do not have
own online banking solution
• 2 mln cards issued in Russia
by the end of 2016
• Cards (debit + credit)
• Car loans
• Micro-finance
• Other services (deposits, insurance,
brokerage)
• Growth of average check
• Growth of usage frequency
• Up to 10 new banks annually
• Asian and European markets
• New platforms (HTC, Lenovo, etc)

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Credit/Debit bank
card distribution
White label solution
Mobile banking for banks
Mobile Financial Supermarket UBANK unique
mobile wallet
Cards distribution
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Distribution of banking products (credit/debit cards) with all Fly
and Huawei new smartphones (leaflets in box) with strong fixed
payments + commission payments from bank issuer
The largest, most effective and unique lead generating and
marketing channel for credit cards distribution on the market

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In 2015 successful launch of a new banking product which
has revolutionary terms and is maximum flexible for end
users.
New bank partner – MDM bank, one of the largest bank in Russia
when measured by capital, assets and deposits.
The Bank operates over 320 offices in 163 cities and towns in the
European part of Russia, the Urals, Siberia and the Russian Far
East. MDM Bank provides a wide range of services to around 3
mln individuals and over 15,000 corporate and SME customers.
In terms of position on Russia:
13th bank by Retail Deposits
19th bank by Assets in Russia
23rd bank by Corporate Loans
Covers 11 Core Regions
Has 320 + Branches
New UBANK Card - World MasterCard
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The ideal mobile banking solution through hi-tech integration with bank processing
 Unique distribution model of bank cards - in the box with the phone. Up to 10 million distribution
bank cards a year in Russia
 Delivery of cards is executed by our partner SPSR on a basis of exclusive agreement. Service
covers over 100 Russian cities, using unique technology that can track cards location and
statuses and transmit information about the status of the card
 Once activated the mobile app, the user is asked to order a visit of specially trained financial
adviser from UBANK to deliver card or/and make identification procedure
 Tried and tested procedure of cards delivery (1-2 days) and customer identification in minutes
(10-15 min)
 Full technical integration with bank – balance, transaction, credit and account management in
UBANK application
Cards distribution
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 High conversion rates in 10 day pilot project: special push messages sent to
10 000 UBANK users advertising bank cards, 80% processed by call-center,
2 000 users have become UBANK card owners
How it works
Successful pilot project

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Leveraging of existing customer base via special algorithm
push notification system developed by UBANK and in-app
offering of new banking and insurance product (lead-
generation model).
Giving high quality leads to banks because of extra
knowledge: phone model, geolocation, social network, contact
book, payment analytics etc.
Financial supermarket
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Credit/Debit bank
card distribution
White label solution
Mobile banking for banks
Mobile Financial Supermarket UBANK unique
mobile wallet

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The only pre-installed mobile wallet on Android platform
Long-term exclusive agreements with leading mobile phone
producers (Samsung, Fly, Huawei)
2m+ pre-installed applications (July 2014)
27m+ pre-installations by the end of 2016 (the largest mobile
wallet in Russia)
115K+ montly registrations (July 2014)
Mobile wallet
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Credit/Debit bank
card distribution
White label solution
Mobile banking for banks
Mobile Financial Supermarket UBANK unique
mobile wallet

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UBANK`s bonus system uses the principle of
gamification - user gets promo-codes associated
with his activities in the app.
UBANK have categorized bonus system with different
bonuses for every achievement. UBANK have 2 main
categories
• Achievements in the app (registration/ attached card/
first payment etc)
• Referral achievements
Our Referral system encourages customers to tell their
friends about app (they can send link or share with their
friends in social networks), keeping our brand top-of-
mind.
Studies show that 49% of consumers make
recommendations to help their friends.
We encourage our users to spread the word by giving
them an offer they can share with friends and
compound this effect by giving them a reward when
their friends make a payment or go through registration.
Gamification
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15. Strictly confidential
UBANK provides non-technological banks a full
online banking solution for web and mobile
More than 300 banks in Russia do not have their
own online banking solution
UBANK gets full access to Banks’ Clients
database and analytics
White label
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Credit/Debit bank
card distribution
White label solution
Mobile banking for banks
Mobile Financial Supermarket UBANK unique
mobile wallet

16. Strictly confidential
 Founded in 2009 Simple Finance
Technology Corp., Portland based
company (www.simple.com) providing
online banking services was sold to a
Spanish banking company, BBVA for $117
million
 Simple offers a sleek online interface,
optimized for smartphones, that
encourages clients to budget and save by
setting goals and tracking their spending in
real time
 100,000 customers
 Estimated benchmark - $117 per user
EXAMPLES / BENCHMARK FOR THE SIMILAR DEALS AND BUSINESSES
 Yandex Money - the leading web banking
service in Russia
 Founded in 2002, in the beginning of
2012 Yandex had more than 9 mln
accounts
 Every day users open more than 9
thousand new accounts and spend more
than RUR120 thousand a day
 In July 2013 Russia’s largest bank –
Sberbank acquired 75% minus 1 share of
«Yandex money» for $60 million
 Estimated benchmark - $6-$8 per
account (not user)
 ISIS Wallet – a mobile application that
allows users to pay for offline purchases
with smartphones
 Started in Nov 2010
 Joint venture between AT&T Mobility LLC,
T-Mobile USA, Inc. and Verizon Wireless
 Application Is preinstalled on 14 types of
smartphones
 20,000 activations per day
Terminal value of users
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Data-rich transactions analysis Payment platform Example of business based
on apps pre-installation model

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IT Development
Founders
Operations
Advisory Board
Management structure
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Founder, Strategic Development Founder, product and operations Development
Head of Operations IT Development, Artem Palamarchuk
Head of Marketing Head of Finance Head of Legal
Processing
system Team
iOS Team Android Team
Marketing team Finance team Legal team
Client Care
Support
Testing Team Design Team

18. Strictly confidential
1. Growing Mobile and Smartphone Sector
2. Unique agreements with leading smartphone producers
3. Huge scale and largest mobile financial supermarket
4. Attractive user economics
5. Cash generating business, Multiple revenue streams
6. New countries to replicate the business model
7. Experienced management team
Investment highlights
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19. Strictly confidential
1. UBANK is looking to raise money to strengthen the team and infrastructure for
financial supermarket and banking card program on a growing Russian market
and start of global expansion with smartphone partners on other markets of their
strong presence: Europe, CIS and Asia
2. Enormous potential to build largest mobile financial supermarket and cards
distribution player
3. Attractive user economics due to exclusive preinstall agreements
4. Proven and cash generating business with multiple revenue streams to be
replicated in various countries
5. Experienced management team with huge experience in mobile applications and
connections among mobile phone producers
Investment summary
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