Smart TechGroup (STG)

Performance indicators

2023:42% increase in net income

Public Joint Stock Company SmartTechGroup (PJSC STG), the parent company of the fintech service CarMoney, on April 3, 2024 announced the Group's financial results under IFRS for 12 months of 2023. The growth of the main financial indicators was a natural result of the company's efforts to attract investments in capital and increase the issuance of loans in the second half of the year.

Key figures of the income statement

• The Group's revenue in 2023 grew within expectations to RUB 3.2 billion, up 18% year-on-year. By the end of the year, revenue dynamics improved markedly due to the stable growth of the loan portfolio while maintaining the average borrowing rate (at 80 +).
• The Group's OIBDA increased by 9% YoY to RUB 1.9 billion. Revenue growth rate is above OIBDA dynamics due to marketing expenses aimed at growing sales volumes and customer base.
• Net profit increased by 42% YoY to RUB 554 mln, exceeding the previous forecast for the year. Net profit grew sharply to + 71% YoY in Q4 as a result of growth in turnover and profitability of the core business. The Group's net profit and profitability in 2023 were significantly impacted by one-off expenses on fundraising transactions during the round of pre IPO - and DPO shares of CARM at To the Moscow exchange. Excluding these one-time expenses, adjusted profit amounted to 640 million rubles. (+ 64% YoY).
• At the end of 2023, return on equity (ROE) was 18.7%. This is slightly lower than in 2022 (19.7%), but significantly higher than our forecast for the year given earlier (17.9%). The decrease in ROE is due to a significant one-time increase in capital as a result of the DPO transaction. Adjusted ROE (excluding one-time costs for pre-IPO and DPO transactions) was 21.6% in 2023.
• Return on assets (ROA) rose to 9.4%, 21% higher than in 2022. Excluding one-time expenses, the ROA was at 10.9%, an increase of 40% compared to the previous year.

Financial Position Report Key Indicators

• The group's assets grew by 23% to RUB 6.5 billion in the 12 months of 2023, both due to an increase in the loan portfolio and the growth of other assets (cash and NMA).
• The Group's capital gain amounted to + 77% to RUB 3.8 billion in 2023, which was the result of raising funds during the pre-IPO and DPO, as well as capitalization of the profit received.
• The amount of funds raised for the year decreased by 19% to 2.3 billion rubles, which led to an improvement in the funding structure. The increase in the share of equity in the liability structure reflects an increase in the financial stability of the company and contributes to a decrease in interest expenses. Net debt decreased by 26%, at the end of the year amounted to 1.9 billion rubles. At the end of 2023, the company was one of the first in its segment to place the release of CFA on the Tokeon platform.
• The loan portfolio increased by 10% over the past year, the issuance increased by 22%. The dynamics of operating indicators significantly accelerated in the 2nd half of 2023, reflecting the effect of lifting regulatory restrictions on capital.

Шаблон:Quote 'author = said Anna Kalugina, General Director of PJSC "STG."

History

2024: Creation of Smart Horizon IT company for custom software development

On January 22, 2024, the Board of Directors of the public joint-stock company SmartTechGroup (PJSC STG), the parent company of the fintech service CarMoney, decided to create an IT company in the perimeter of the Group. The working name of the structure is Smart Horizon. Read more here.

2023

Expansion of the Board of Directors

The board of directors of the public joint-stock company SmartTechGroup (PJSC STG), the parent company of the fintech service CarMoney, has changed: following the results of the extraordinary general meeting of shareholders of PJSC STG, the enlarged composition of the board was approved. In addition, personnel changes in the corporate governance structure of the Group and CarMoney subsidiary are presented to this Board of Directors.

The company on December 12, 2023 announced an increase in the quantitative composition of the board of directors from 5 to 9 people. The decision is due to the growth of the Group's business, as well as the need to comply with the Law "On Joint-Stock Companies" due to the increase in the number of shareholders after entering the stock exchange (more than 30 thousand of them).

The following were re-elected to the Board of Directors of PJSC STG:

• Alexander Tildikov, Chairman of the Board of Directors, Independent Director, Chairman of the Audit Committee;
• Anton Zinoviev, Member of the Board of Directors, General Director of PJSC STG;
• Anna Kalugina, Member of the Board of Directors, General Director of MFC KarMani LLC;
• Alexey Voskoboinik, Member of the Board of Directors, Independent Director, Member of the Audit Committee;
• Tatyana Borodkina, Member of the Board of Directors, Member of the Audit Committee.

New members were elected to the Board of Directors of PJSC STG:

• Elman Mehdiyev - 20 years of management of divisions of leading international companies in Russia. 14 years - in the field of GR. For December 2023, he heads the Council of the SRO MiR.
• Pavel Gotsev - total experience of professional activity in the securities market for more than 30 years. He began his own professional career at the Business Services investment company in 1993, worked in the investment business of MAPO-Bank, PromStroyBank, created one of the Russian voice brokers PremEx, and since 2015 he has been the head of the investment and financial company Solid.
• Elena Plishkina - has 20 years of experience in consulting, corporate development, audit and finance at major Russian and international companies (Ernst & Young, Rosvodokonal Group of Companies, Alfa-Group). For more than 10 years she was engaged in corporate finance, risk management, development of internal control and audit systems at the Alfa Group corporate center.
• Alexander Belokopytov - has many years of experience in corporate governance bodies. For more than 10 years he worked in the largest financial institutions, held positions from project director to vice president of the bank.

The election of an expanded board of directors will not only improve the Group's corporate governance efficiency, but also comply with one of the requirements of the Moscow Exchange to include in the future shares of PJSC STG in the second quotation list, which will positively affect the company's shareholder history.

Fintech companies are leading in technological development in the financial market, ahead of many banks in terms of digitalization. It is in this segment that we observe the explosive development of online services and proper investments in promising areas. Fintech service CarMoney was one of the pioneers of this technological push and has ambitious goals. The ideology of the company is close to me and I will be happy to share my experience and assist in the development of its business, said Elman Mehdiyev.

We have been cooperating with CarMoney since 2017, helping the company raise capital in the stock market. Together we made five issues, bonds stood at the origins of the VDO market, in 2023 we jointly prepared. IPO We know Kompany's business, her team well, we understand how the CarMoney business model works. I am sure that the examination of IFK Solid will be useful for PJSC STG in further development in the status of a public company, added Pavel Gotsev.

Anton Zinoviev was nominated for the post of chairman of the board of directors of PJSC STG, Anna Kalugina for the post of general director of PJSC STG, Elena Yashina for the post of general director of the fintech service CarMoney.

Intention to obtain a listing of ordinary shares on the Moscow Exchange

Public Joint Stock Company SmartTechGroup announced its intention to obtain a listing of its shares on the Moscow Exchange. This was announced on June 13, 2023 by CarMoney.

On June 9, 2023, the company received the status of "PJSC (Public Joint Stock Company) SmartTechGroup." Earlier, on June 2, 2023, the Central Bank of the Russian Federation registered a prospectus of securities in relation to additional ordinary shares of STG JSC. The size of the additional issue will be up to 600 million shares.

Capital raising is an important element in the implementation of our long-term strategy. On the way from startup to one of the leaders Russian fintech , we attracted both debt and joint stock, and financing feel ready to take the next step - to go public. This will allow us to increase the size of regulatory capital and in the coming years multiply increase our share in the secured loans market, said Anton Zinoviev, founder of CarMoney and shareholder of PJSC "STG."

The volume of the loan market on bail autos Russia is estimated at 1.9 trillion. rubles For the range of rates from 40% to 100%, in which the fintech service CarMoney operates, the market size, according to the company's estimates, is 132 billion rubles. At the same time, the CarMoneyfor 2022 loan portfolio reached 4.4 billion rubles. CarMoney is a representative of the collateral segment: its market share as of June 2023 is twice as much as all competitors in total.

At the same time, CarMoney's share of the total potential volume of the mortgage microloans market is only 4%, while the total share of competitors is 2%. The potential for growth is enormous.

Earlier, the company formed the Board of Directors, which included two independent directors. Members of the Board of Directors have extensive experience in executive positions in the field of information technology, finance and investment. The Board of Directors includes:

• Independent Director, Chairman of the Board of Directors, Chairman of the Audit Committee Tildikov Alexander Vitalievich
• General Director of SmartTechGroup PJSC Anton Zinoviev
• General Director of MFC KarMani LLC Anna Aleksandrovna Kalugina
• Executive Director of PJSC "STG" Borodkina Tatyana Ivanovna
• Alexey Voskoboinik, Independent Director, Member of the Audit Committee

Within the framework of the Board of Directors, an audit committee has been formed, which includes two independent directors. The committee is headed by independent director Tildikov Alexander Vitalievich.

The reality in the stock market continues to take shape, and trading companies still have a significant discount against the market until February 2022. Therefore, we are considering the possibility of offering the market a small volume of shares in the near future, in our opinion this will form a positive trend in the growth of the company's value. The increase in capital for our business is an opportunity in the coming years to increase the portfolio and improve the financial performance of the company, emphasized Anton Zinoviev.

At the beginning of 2023, PJSC STG raised equity in the amount of 229 million rubles through a closed subscription on the Rounds investment platform (included in the register of the Bank of Russia). The funds were directed to capital to implement a strategy aimed at increasing capitalization and increasing market share.

The fintech service CarMoney has been present on the stock market for 6 years. In total, the company placed five issues bonds totaling 1.5 billion rubles. The debut issue, repaid in November 2022, was placed on the Moscow stock exchange in 2017 at the stage of formation of the segment of high-yield bonds Russia in and aroused high interest. creditors