Slide 1: LHV Group Q2 2017 results
LHV Group Q2 2017 results 18 July 2017
Slide 2: Busy second quarter
Busy second quarter Focus on customer experience * Video recognition * Smart-ID * Chatbot ° ATM's * Payroll payment solution Pension funds investments to Estonia ¢ Bonds issued by Transpordi Varahaldus and RKAS * 100 EURm investments to Estonia * Internal capital transactions Asset management capita
Slide 3: Rapid volume growth and record-breaking client activity
LHV Group Rapid volume growth and record-breaking client activity Financial results, EURt Net interest income Net fee and commission income Other income Total revenue Total operating expenses Earnings before impairment Impairment losses on loans. Income tax Net profit Business volumes, EURm Depostis
Slide 4: Group results — comparison with financial plan
LHV Group — comparision with financial plan Net income compared to financial plan +1 EURm Financial results, EURt 13 months Total revenue, incl. Ways Net interest income —* Net fee and commission income = —~*\—~v~ Total operating expenses wri Earnings before impairment wy Impairment losses on loans
Slide 5: LHV Banking: Strong growth continued in all business lines
LHV Banking Strong growth continued in all business lines EURm 1200 02-15 2-15 8-15 3-15 Corporate loans Deposits 1,024 2s ee an | (04-15 atte 2-16 Q3-16 4-16 ariz Q2-17 Demand deposits "Term deposits Loans (net) — — a ng &@ &@ Q4-15 Qt-16 2-16 03-16 Q4-16 ati7 217 = Retail loans = Loans to related
Slide 6: LHV Banking: Q2 cost/income below 50% but larger impairments
LHV Banking Q2 cost/income below 50% but larger impairments Financial results, EURt Net interest income Net fee and commission income Other income Total revenue Total operating expenses Earnings before impairment Impairment losses on loans Net profit Business volumes, EURm Depostis from customers Lo
Slide 7: LHV Banking — comparison with financial plan
LHV Banking — comparision with financial plan Profit ahead of financial plan by +0.5 EURm Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Net profit Business volumes, EURm De
Slide 8: LHV Asset Management: Estonia related direct investment decisions
LHV Asset Management 100 EURm Estonia related direct investment decisions customers (tt) EURm Assets under management and customers 1100 (AUM +16% 1038 200 801 __ ee eee — 880 — — 180 660 160 440 140 220 120 0 100 C215 Q8-15 4-15 1-16 Q2-16 03-16 4-16 ait? Q2-17 Pillar I pensionfunds sm Other funds
Slide 9: LHV Asset Management: Decreasing share capital by 6.6 EURm
LHV Asset Management Decreasing share capital by 6.6 EURm 9 quarters nanan Financial results, EURt Total revenue Selling expenses Other operating expenses. Total operating expenses EBIT Net financial income | Income tax Net profit Pe Business volumes, EURm 9 quarters Pillar Il pensionfunds Pillar Il
Slide 10: LHV Asset Management — comparison with financial plan
LHV Asset Management — comparision with financial plan Income tax expense lower than planned Financial results, EURt 13 months Total revenue os Total expenses Ar Earnings before taxes I~ Income tax srsessee ee Net profit Ty Business volumes 13 months Assets under management, EURm .~—— Active custome
Slide 11: Stock information
LHV Group Stock information EUR LHV stock price and turnover Eun + LHV share price increased close to 10 10.8 emt LHV chily turnover (EUR “foo EUR by the end of the Q2 10.0 UR) 200 9.5 1,000 * 1,236 trades were made with the 9.0 Sc stock during Q2 on the market with a 85 turnover of 3.2 EURm which g
Slide 12: Investment decisions to Estonia, ROE, credit quality, loan portfolio growth
100 EURm 17% Investment decisions to Estonia ROE 68 EURm Good credit quality Loan porfolio growth 15
Slide 13: Annexes
Annexes
Slide 14: Numbers influenced by payment intermediaries
LHV Group Numbers influenced by payment intermediaries % LCR 300 200 100 | oO a2 a3 04 at a2 a3 2016 % CT1 capital adequacy 16 14.4 | | 8 | | | | | | | 4 ° 4. ea a2 08 G4 at 2s 2016 ——=LHV internal Tier 1 ratio limit 14 (evs at 2017 137 a2 % 25 a 3 80 eo 440 | 40 Loan-deposit ratio % 8 ° a2 03 G4 ai
Slide 15: Q2 results influenced by credit impairments
LHV Group Q2 results influenced by credit impairments % Corporate loans by ratings 80 25 20 15 10 : | | ° = 13046 7 8 9 1012 18 216 sari7 sa2t7 EURm Mokilizingas loans overdue porfolio : | a | i : 08 4 a 2 2 82 a2 as 04 a a Us a4 at ue 2016 2017 loan impairments = over 90 days or contract cancelled
Slide 16: AS LHV Group contact details
AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE