Ipas Indexo · OMXRSE:IDX1R
Ipas Indexo — Indexo — IPO Roadshow (June 2022)
69 slides from Ipas Indexo's IPO roadshow presentation, Jun 29, 2022
Slide 1: Goes Public: Why and how to become an INDEXO shareholder?
GOES PUBLIC Why and how to become an INDEXO shareholder? Valdis Siksnis Henrik Karmo Ieva Margeviča Toms Kreicbergs chairman of the Board member of the Board member of the Board member of the Council 29.06.2022
Slide 2: Important information
Important information This Presentation should be regarded as an advertisement. This Presentation is for informational purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation fo
Slide 3: 5+ billion EUR accumulated in 2nd pension pillar
A total of 5+ 6% Your salary savings goes to 2nd pension pillar billion EUR has already been accumulated Source: manapensija.lv, 20.06.2022
Slide 4: Before INDEXO: the most expensive pension commissions in Europe
Before INDEXO: the most expensive pension commissions in Europe Source: fktk.lv about Latvia 2011.-2016.; oecd.org about other OECD countries, 2013.
Slide 5: INDEXO improved 2nd pillar market
Average commission for 2ndpillar product INDEXO improved 2 nd 1,52% pillar market! 0,54% 2016 2021 Data source: fktk.lv
Slide 6: INDEXO delivered strong results to clients
INDEXO delivered strong results to clients INDEXO Izaugsme 47 INVL Ekstra 47+ Luminor Aktīvais SEB Aktīvais CBL Aktīvais Swedbank Dinamika Data source: manapensija.lv, 03.07.2022 to 27.06.2022 Past performance does not guarantee equivalent performance in the future
Slide 7: Our customers appreciate it
Change in the number of customers in 2021 Our customers appreciate it INDEXO: the fastest growing pension manager in Latvia Data source: manapensija.lv
Slide 8: The size of the entire market is also growing
In addition, the size of the entire market is also growing 15% in a year rapidly Total assets of the 2nd pension pillar, million EUR Data source: manapensija.lv
Slide 9: To be the fastest growing company in a fast growing market
To be the fastest growing company in a fast growing market… What has this meant for our shareholders?
Slide 10: The actual result: clients
The actual the result on June 13, 2022 What we promised investors to achieve within 5 years 29'500 80'400 clients clients
Slide 11: The actual result: assets under management
The actual the result on June 13, 2022 What we promised 495 milj. EUR investors to management achieve within 5 years 236 milj. EUR management
Slide 12: The actual result: turnover
The actual the result on June 13, 2022 What we promised 1.6 mil. EUR investors to turnover achieve within 5 years 1.1 million EUR turnover
Slide 13: 1,000 EUR invested in INDEXO shares in 2017
~14'000 EUR value today 1'000 EUR invested in INDEXO shares in 2017 Past performance does not guarantee equivalent performance in the future.
Slide 14: INDEXO: a success story with 3 winners
INDEXO: a success story with 3 winners Clients Society Investors
Slide 15: INDEXO success story is just beginning
INDEXO success story is just beginning We are growing our We are also We'll establish 2nd pillar market growing 3rd pillar the bank, with share faster than with innovative huge growth ever product opportunity
Slide 16: Today we will explain
TODAY WE WILL EXPLAIN: 1 2 3 What problems What is the What do exist in the next big financial Latvian banking opportunity forecasts sector? for show? INDEXO?
Slide 17: At the end we will show how to subscribe
At the end of the seminar, we will show how convenient and simple it is to subscribe to INDEXO shares and become a co-owner of our company!
Slide 18: What problems exist in the Latvian banking sector?
1 What problems exist in the Latvian banking sector?
Slide 19: Latvia last in eurozone in loans issued as % of GDP
Latvia - in the last place in the eurozone in terms of loans issued as a % of GDP Issuedbankloans as %from GDP Data source: European Central Bank (Apr 2022 - loans to households and non-financial institutions) Eurostat - 2021 GDP data
Slide 20: Economy is growing, but bank loans are decreasing
Latvia's economy is growing, but loans issued by banks are decreasing Billions of EUR GDP of Latvia Loans for residents Data source: FKTK.lv (loans to households and non-financial corporations) Central Statistical Office (IPP)
Slide 21: We are saving more, but banks are lending less
We are saving more and more, but banks are lending less and less Resident loans Resident deposits Loands against deposits,% Data source: FKTK.lv (loans and deposits of households and non-financial corporations)
Slide 22: The issued credits are also expensive
The issued credits are also expensive Average mortage rate Average rate for business loans Data source: European Central Bank, Apr 2022
Slide 23: Latvia's economy is under-credited by 5-6 billion EUR
According to our estimates, Latvia's economy is under-credited, at least 5-6 billion EUR
Slide 24: What about our neighbors in Estonia?
A comparison we can learn a lot from - what about our neighbors in Estonia?
Slide 25: In Estonia, with similar GDP, 60% more loans were issued
In Estonia, with similar GDP, 60% more loans were issued Estonia 18.5 billion euros Latvia 11.5 billion euros Data source: FKTK.lv, Eestipank.ee (loans issued to households and non-financial corporations, Q4 2021)
Slide 26: Estonian bank deposits warm the Estonian economy
Estonian bank deposits warm the Estonian economy 21.0 17.0 18.5 billion. EUR billion. EUR billion. EUR 11.5 billion. EUR Deposits Deposits Loans Loans Estonia Latvia Data source: FKTK.lv, Eestipank.ee (loans issued to households and non-financial corporations, Q4 2021)
Slide 27: Why is the situation so different in Estonia?
Why is the situation so different in Estonia?
Slide 28: Local capital and competition in the banking sector
Important difference: local capital and competition in the banking sector Latvia Estonia Data source: Bank assets Estonian Banking Association, Q1 2022 FKTK.LV, Q4 2021
Slide 29: Example of LHV: strong domestic bank with pension manager as foundation
Example of LHV: A strong domestic bank with a pension manager as its foundation 1537 1374 1349 LHV pension assets, 1103 1214 974 million EUR 504 570 144 252 374 21 32 36 53 85 2006200720082009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20192020 2021 Datu avots: AS LHV Varahaldus gada pārskati
Slide 30: Example of LHV: bank profit grew faster than pension profit
Example of LHV: the profit from the bank grew faster than the profit from the pension business 60.3 Net profit, LHV group million EUR LHV pension business 39.8 27.2 27.2 19.9 22.2 14.8 9.7 6.8 8.3 4.31.7 3.6 4.7 6.1 5.8 6.1 0.1 0.7 (1.8) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Data source:
Slide 31: Latvian banking sector similar to pension sector before INDEXO
The situation in the Latvian banking sector is similar to the situation in the pension sector before the entry of INDEXO: weak competition, high costs, foreign capital dominates
Slide 32: INDEXO great opportunity
2 INDEXO great opportunity
Slide 33: INDEXO will establish a modern bank owned by Latvian investors
INDEXO will establish a modern, A bank owned by Latvian investors with the aim of breaking our dependence on foreign banks and crediting the Latvian economy
Slide 34: The business opportunity of the banking market is obvious
The business opportunity of the banking market is obvious 264 million EUR Total unaudited profit of banks in 2021 25.7 million EUR Total commission income of 2PL managers in 2021 Data source: fktk.lv (pension market), Financial Industry Association (banking market)
Slide 35: INDEXO is in a great position to take advantage
INDEXO is in a great position, to take advantage of this opportunity! 80'000 customers A successful, A well-known and (and growing fast) popular brand profitable company
Slide 36: Many more Latvian customers are ready to trust INDEXO
Many more Latvian Swedbank 37% 43% customers are ready to trust SEB 21% INDEXO 25% Indexo 5% 20% 20% Current 2nd pension pillar 17% Citadele market share by customer 19% counts 9% Luminor 13% Survey data: Willing to be INVL 5% 1% considered as their own pension manager Other 0% 0% Hard to tell 23% S
Slide 37: INDEXO people helping clients understand pensions
INDEXO people helping clients understand pensions
Slide 38: INDEXO is managed by experienced professionals
INDEXO is managed by experienced professionals with extensive banking and corporate management experience The board of the company: Valdis Siksnis Ieva Margeviča Henrik Karmo Council: Valdis Vancovičs Renārs Lokomets Svens Dinsdorfs Toms Kreicbergs Tīna Kukka
Slide 39: Let's start gradually and thoughtfully
Let's start gradually and thoughtfully Q3 Q4 Q1 Q2 Q3 Q4 Q1 .. 2022 2022 2023 2023 2023 2024 2025 Bank Licensing IT infrastructure preparation Team expansion and training Start of service for private persons and custodian bank Development and start of business service The timetable shown here is ten
Slide 40: First glimpse of what INDEXO Bank will look like
Our competitors are already watching us, therefore, we do not publish detailed tactical plans. But today - the first glimpse of what INDEXO Bank will look like!
Slide 41: Modern, digital bank!
Modern, digital bank! *The design of the bank application is preliminary and will change.
Slide 42: A convenient, transparent application for Latvian users
A convenient, transparent application,adapted specifically to the needs of Latvian users *The design of the bank application is preliminary and will change.
Slide 43: The world's best Fintech solutions in your pocket
The world's best "Fintech" solutions — in your pocket *The design of the bank application is preliminary and will change.
Slide 44: To be continued...
To be continued. . . *The design of the bank application is preliminary and will change.
Slide 45: Financial projections
IND=xXO. @ Financial projections
Slide 46: Expected Growth: Pensions
Expected Growth: Pensions Assets under management Number of clients 3PL assets under management, EUR million 3PLclients,thous. 2PL customers, thous. 2PL assets under management, EUR million 2206 173 185 1865 148 161 1559 122 1283 93 954 68 671 455 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 20
Slide 47: Expected growth: Bank
Expected growth: Bank Bank assets Bank customers Millions, EUR 593.8 Thousands 145 120 441.6 93 304.6 67 177.7 39 86.7 6.6 2022 2023 2024 2025 2026 2027 2022 2023 2024 2025 2026 2027
Slide 48: Expected growth: profit
Expected growth:profit Net profit - Bank Net profit - Pensions
Slide 49: Good news: no need to become a huge bank
Good news: To achieve our goals, we don't need to become a huge bank or existing banks must be "defeated".
Slide 50: Even 3-4% of the credit market will earn well
Even taking over 3-4% of the existing one credit market, INDEXO will both provoke strong competition and earn well.
Slide 51: The goals are definitely achievable
The goals are definitely achievable. Let's work to surpass them!
Slide 52: How to become an INDEXO shareholder?
How to become an INDEXO shareholder?
Slide 53: INDEXO issues new shares and raises 7,490,000 EUR
Initial public offering of INDEXO shares: INDEXO issues new shares and raises 7'490'000 EUR of new capital
Slide 54: What does it mean to become an INDEXO shareholder?
What does it mean to become an INDEXO shareholder? You will own a part of INDEXO You will benefit as the company grows You will have the opportunity to influence the development at shareholder meeting You will help improve Latvia's financial environment
Slide 55: Initial public offering of INDEXO shares
Initial public offering of INDEXO shares: June 28 - July 11 535,000 shares The minimum at 10:00 a.m at 12:00 p.m are offered for investment is the price of 14 at least 1 share EUR/share
Slide 56: The IPO price has already been proven in practice
The IPO price has already been proven in practice At the beginning of June, before IPO, over 5 million EUR worth of shares were bought by investors at 14 EUR/share
Slide 57: Enlight Research positively assess INDEXO
Baltic stock market experts Enlight Research positively assess INDEXO The Enlight study published on June 27 is available at: https://indexo.lv/en/for-investors/ Enlight Research - the leading Baltic stock market a research company that follows around 30 Baltic companies.
Slide 58: Signing up for INDEXO shares is easy
Signing up for INDEXO shares is easy: 1 2 3 Read the Open a securities Submit an prospectus and account or an order for decide how investment subscription many shares you account to shares want to buy
Slide 59: Read the prospectus and choose how many shares
1. Read the prospectus and choose how many shares you want to buy Price of the share 14 EUR Minimum investment: 1 share
Slide 60: Open a securities account and submit an order
2. Open a securities account or an investment account in your internet bank 3. Submit an order subscribe to shares It's really simple!
Slide 61: Money reserved at signing up; allocation around July 12
At the moment of signing up, money will be reserved in your account for the full amount of shares that you have signed up for. Around July 12, after the end of the subscription period, you will find out how many shares you have purchased.The unused portion of the money will be released.
Slide 62: Subscription instructions link
https://ej.indexo.lv/instruction
Slide 63: Why become an INDEXO co-owner?
Summary: Why become an INDEXO co-owner? 1 2 3 In our opinion, You will help improve It's excellent profit Latvia's finances convenient potential for environment by creating and simple investors local capital bank - anyone can do it!! https://ej.indexo.lv/instruction
Slide 64: Share buyback program
Share buyback program: In the unlikely event that INDEXO will not receive a bank license within 24 months, the new shareholders will have the ej.indexo.lv/instruction opportunity to sell their shares back to INDEXO at the purchase price (14 EUR). Please see the prospectus for full terms and conditio
Slide 65: Will the team gain 4% in the banking market?
Will the INDEXO team, which during last 5 years, within the pension market gained 9% from zero, in the next 5 years, starting from a strong platform, will gain 4% interest in the banking market? Data source: INDEXO 2nd pension pillar market share from manapensija.lv, 15/6/22
Slide 66: We have two options in Latvia
We have two options in Latvia: To say Do something "Everything to improve it is bad" and benefit from the change
Slide 67: This is the INDEXO path. Come with us!
We have two options in Latvia: This is the INDEXO path. Come with us! To say Do something https://ej.indexo.lv/instruction "Everything to improve it is bad" and benefit from the change
Slide 68: Any questions?
https://ej.indexo.lv/instruction Any questions? info@indexo.lv
Slide 69: Contacts
Contacts: IPAS "Indexo" Elizabetes street 13-1A, Riga, LV-1010 Reg. No. 40203042988 indexo.lv info@indexo.lv +371 20 006 088 For the prospectus and instructions on how to subscribe to INDEXO shares, see here https://ej.indexo.lv/instruction