European Christmas Barometer Ferratum Group Press Release Helsinki, 10 December 2014 FERRATUM GROUP S EUROPEAN CHRISTMAS BAROMETER COMPARES CHRISTMAS CONSUMPTION IN 15 WESTERN AND EASTERN EUROPEAN COUNTRIES. What are the most popular gift purchases this year? In which European country is the most money spent on Christmas, comparatively? Are Europeans doing their Christmas shopping online or in traditional stores? Ferratum Plc asked their customers in different countries to evaluate their consumer behavior in the holiday season. The customers replied to a survey about how much money they will spend on Christmas shopping and how long it would take for their household to regain financial balance after Christmas. According to the Christmas barometer, this year s consumption in Europe will not noticeably reduce compared to Christmas last year. In most European countries, people will spend the same amount of money as last year. Sweden is an exception, as Swedes are planning to spend a little less money than they did in 2013. The Netherlands, Denmark and Finland spend the least at Christmas Interestingly, considering the levels of disposable income in Central or Eastern Europe, significantly more money is spent on Christmas shopping in these countries than in other parts of Europe. Polish people spend the most, almost one-third of a Polish consumers monthly income is spent on Christmas. Nations known to be frugal, such as Finland, Denmark and the Netherlands, place at the other end of Ferratum s Christmas barometer list, spending the least money on Christmas when compared to others. On the other hand, Swedes spend a little more than average of all 15 countries. The average household spends approximately 25 % of its net income on Christmas purchases. In Finland, households spend around of available net income on Christmas purchases, which means approximately 470 amongst survey participants. In Sweden, the respective number is significantly higher, with households spending around 590 during Christmas, or 25 % of available net income of the participating households. Christmas purchases mainly made through traditional channels European consumers make significantly more than half (65 %) of their Christmas purchases in traditional stores. In countries where less money is spent on Christmas than in the rest of Europe, most shopping is done online. The most online shopping is done in the Netherlands (2), Germany (1) and Finland (17 %). Consumption in all European countries is mainly related to gifts rather than services or holiday travel. Europeans spend slightly more than one-fifth of their Christmas shopping budget on clothes and the next most money on toys. Less than is spent on cosmetics, confectionary and electronic devices.
Comparing consumption between different countries, Estonia has a clear preference (22 %) for books. In Sweden, gift tokens are bought significantly more () than in Finland (2 %). Polish consumers spend money on cosmetics (27 %), whereas Latvian () and Lithuanian (1) people spend money on confectionary and other Christmas treats. Dutch households buy the most alcohol for Christmas (). More than half of the surveyed households expect to regain financial balance around two months after Christmas. How the European Christmas Barometer was conducted The Christmas barometer was conducted as an anonymous, standardized online survey, sent out via email to consumers in Ferratum s markets: Finland, Sweden, Denmark, the Netherlands, the UK, Spain, Germany, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Romania and Bulgaria. Approximately 1,900 households participated in the survey. The average available net income of participating households in these 15 countries was 700 3,600. Respondents were aged between 21 and 65 and 57 % were women. In addition to demographic factors, respondents were asked about disposable monthly net income, how much they spend for Christmas, what kind of gifts they buy, how much shopping they do online and how soon the respondents expected to regain financial balance after Christmas. The surveys used each country s respective currency. Responses were evened out to reflect the respective purchasing power of each country. All survey responses were anonymized and participants were not offered any rewards or payment for participating in the survey. Ferratum will publish its next barometer observing European consumer and financial behavior in March 2015. For further information, please contact Ville Paija Advertising & Public Relations Ferratum Group Tel. + 358 40 594 1255 ville.paija@ferratum.com www.ferratumgroup.com Ferratum Christmas Barometer Ferratum Group Fact Sheet
Ferratum Group European Christmas Barometer 2014 Christmas consuming relative to disposable household income European Christmas shopping CONSUMING IN RELATION TO OTHER COUNTRIES POLAND 129 32 % 22,4 % CZECH 124 31 % 16,2 % SLOVAKIA 124 30 % 9, ESTONIA 123 30 % 8,4 % ROMANIA 121 30 % 8,1 % LITHUANIA 114 2 HOUSEHOLD UTILITIES 6,1 % BULGARIA 104 2 5, SPAIN 102 25 % 5,5 % SWEDEN 101 25 % HOUSEHOLD APPLIANCES 3,7 % ALL COUNTRIES 100 25 % GAMES 2, GERMANY 87 WELLBEING 2,5 % UNITED KINGDOM 82 20 % ALCOHOL 2,2 % LATVIA 74 SPORTS GEAR 2,0 % FINLAND 72 TRAVELLING 1, DENMARK 54 13 % OTHER HOBBY 1, NETHERLANDS 48 12 % MUSICAL INSTRUMENTS 0, Household consuming prognosis 3 LESS THAN A YEAR AGO 4 SAME AS A YEAR AGO 14 % MORE AS A YEAR AGO FERRATUM GROUP EUROPEAN CHRISTMAS BAROMETER 2014 Survey was done for Ferratum Group s active customers in 15 countries across the Europe as a web survey with a standardized questionnaire for all locations. Incomes where asked as a local currency and relative christmas investment is calculated as a ratio of christmas expenditures to family s disposable income in each location.
Top Christmas consuming and behaviour Finland Sweden 17 % 23 % 1 WELLBEING TRAVELLING Consuming in relation to other countries: 72 (FE group = 100) Consuming relative to household income: (470 ) Web purchases: 17 % Consuming in relation to other countries: 101 (FE group = 100) Consuming relative to household income: 25 % (590 ) Web purchases:12 % Estonia Denmark 22 % 22 % 1 13 % ALCOHOL HOUSEHOLD UTILITIES Consuming in relation to other countries: 123 (FE group = 100) Consuming relative to household income: 30 % (290 ) Web purchases: Consuming in relation to other countries: 54 (FE group = 100) Consuming relative to household income: 13 % (550 ) Web purchases: 13 % United Kingdom Germany 13 % 12 % OTHER HOBBIES TRAVELLING GAMES GAMES Consuming in relation to other countries: 82 (FE group = 100) Consuming relative to household income: 20 % (650 ) Web purchases: 1 Consuming in relation to other countries: 87 (FE group = 100) Consuming relative to household income: (380 ) Web purchases: 1 FERRATUM GROUP EUROPEAN CHRISTMAS BAROMETER 2014 Survey was done for Ferratum Group s active customers in 15 countries across the Europe as a web survey with a standardized questionnaire for all locations. Incomes where asked as a local currency and relative christmas investment is calculated as a ratio of christmas expenditures to family s disposable income in each location.
Latvia Lithuania 23 % 1 11 % 14 % 12 % HOUSEHOLD UTILITIES Consuming in relation to other countries: 74 (FE group = 100) Consuming relative to household income: (190 ) Web purchases: 11 % Consuming in relation to other countries: 114 (FE group = 100) Consuming relative to household income: 2 (210 ) Web purchases: 12 % Poland Czech 27 % 23 % 20 % 22 % 7 % Consuming in relation to other countries: 129 (FE group = 100) Consuming relative to household income: 32 % (350 ) Web purchases: 1 Consuming in relation to other countries: 124 (FE group = 100) Consuming relative to household income: 31 % (230 ) Web purchases: 14 % FERRATUM GROUP EUROPEAN CHRISTMAS BAROMETER 2014 Survey was done for Ferratum Group s active customers in 15 countries across the Europe as a web survey with a standardized questionnaire for all locations. Incomes where asked as a local currency and relative christmas investment is calculated as a ratio of christmas expenditures to family s disposable income in each location.
About Ferratum Group Ferratum is a pioneer in the field of mobile lending Ferratum Group is an international provider of mobile consumer loans. As a pioneer in the field of mobile lending, the Group has expanded its operations to 19 countries since 2005. In Europe, Australia and New Zealand. Ferratum offers customers a fast, easy to use highway to mobile lending and banking services. Our services can be accessed online or on mobile devices, and a loan decision is usually made within minutes. Internationally, more than 2.8 million people have registered at Ferratum, where of 0.9 million customers have been granted one or more loans. Managed by its founder and owner Jorma Jokela, the company has expanded rapidly since it was founded in 2005. In 2013, Ferratum generated revenues of EUR 58.2 million. The EBIT margin amounted to 12.6% in 2013. In the first nine months of 2014, Ferratum s revenues reached EUR 49.4 million. Operating profit increased to EUR 8.5 million. The company is based in Helsinki, Finland and employs internationally over 350 people. Ferratum customers Our customer base comprises a wide cross-section of our markets' populations. In 2013, our customers were nearly equally divided between men and women. We have active users among all age demographics. Couples with children being the biggest customer group (42%), singles the second (35%) and couples without children the third (23%). Two thirds of Ferratum customers have full time employment. Uniting our clients is usually the wish to get an easy, quick, anonymous and a less bureaucratic bridging loan. The product usage is as follows: invoice (39%), impulse (36%), hobbies (11%), restaurant (8%), paying depts (3%) and other (4%). Recent studies show that the usage of mobile banking solutions will increase significantly in the coming years also because of the change in consumer behaviour. Ferratum Bank Ltd. Ferratum Bank Ltd, holds an EU credit institution licence, which enables the Ferratum Group to engage in regulated transactions that require a banking licence in all EU Member States. Digital revolution and macro trends are providing market opportunities: Ferratum is well positioned in this new banking environment pursuing the Mobile Bank Strategy.
Ferratum strategy Our business strategy is focused on creating sustainable product offerings and long-term planning. It is focusing on organic growth, further geographic expansion and additional product portfolio development. We are committed to our vision of creating a leading mobile bank. Banking sector is changing: significant market growth for mobile banking by worldwide increasing smartphone usage and change in consumer behavior. Ferratum with longstanding expertise in the area of mobile banking services is well positioned to be established as mobile bank in the age of digital revolution. Our responsibility Being a part of a global society, Ferratum is committed to do its share in creating a sustainable future. As a mobile consumer lending provider, we believe that Ferratum can generate value to our customers, partners, shareholders and investors but we also believe in benefiting the communities in which we operate by providing employment opportunities. Our social responsibility also means openness and transparency in all dealings. We aim to create trust among our customers, employees and stakeholders. Ferratum has its roots in Finland. According to Transparency International, Finland has been among the three least corrupted countries for years. We are committed to apply Finnish values in all the countries we operate. This is why we strongly believe in our self-imposed ethical principles and will act accordingly. Further information More information regarding Ferratum Group, please visit www.ferratumgroup.com Interview requests of the group management please refer to Mr. Ville Paija Advertising & Public Relations Ferratum Group +358 40 5941255 ville.paija@ferratum.com