Are there employment risks?

Bondora Group’s success depends on its management and employees who possess highly specialized knowledge and experience in IT and consumer lending business development. Many senior management team members have significant experience in the online consumer lending industry and in-depth knowledge of the regulatory and legal frameworks of the markets in which it operates, and Bondora Group believes they would be difficult to replace.

The market for qualified individuals is highly competitive and the costs of hiring and training new employees are increasing. Accordingly, Bondora Group may not be able to attract and/or retain qualified executive officers or IT specialists, which may have a material adverse effect on its business, financial condition, operational results or prospects, or cash flow.

Bondora Group’s personnel in Estonia receive above average remuneration. Estonia has a large pool of IT specialists to choose from, while Bondora Group has a solid image in the local IT community and is generally considered an attractive employer. Because Bondora Grou’´s primary language for internal communications is English, it also has access to non-Estonian IT specialists.