Nordnet Ab · OMXSTO:SAVE
Nordnet Ab — Investor Day (February 2022)
123 slides from Nordnet Ab's investor day presentation, Feb 11, 2022
Slide 1: Capital Markets Day
Capital Markets Day 11 February 2022, 10.00–14.00 CET
Slide 2: Today’s agenda and presenters
Today’s agenda and presenters 10:00 – 10:20 Introduction to Nordnet 10:20 – 11:25 Nordnet 2025 Strategy Lars-Åke Norling Lennart Krän Rasmus Järborg 11:25 – 11:50 CEO CFO CPO & Deputy CEO Deep-dive: Market 12:20 – 13:15 Deep-dive: Growth Elias Lindholm CTO Johan Tidestad CCO Fredrik Ekblom CEO Nordn
Slide 3: Introduction to Nordnet
Introduction to Nordnet 3
Slide 4: This is Nordnet
This is Nordnet We exist to democratise savings and investments 764bn 1.63m 72m Savings capital Active customers in On-exchange trades SEK as of January 2022 4 Nordic countries as of January 2022 in 2021 4
Slide 5: Pan-Nordic powerhouse
Pan-Nordic powerhouse #1 Nordic broker #1 domestic broker on Nordic exchanges 2021 NPS position in Nordics #1 #1 NPS position vs key competitors with #1 rank in DK, FI, NO; #2 in SE #1 Market share in Nordics #1 market share of addressable market among online platforms
Slide 6: #1 choice for Nordic savers and investors
ASPIRATION #1 choice for Nordic savers and investors “The Nordic’s most satisfied customers enabled by a state- of-the-art platform for all their savings and investment needs.”
Slide 7: Building the best platform for savings and investments
BRAND PROMISE Building the best platform for savings and investments “Through leading UX, cutting-edge financial products, automated and inspiring customer journeys as well as tools for informed decisions, we are building the best platform for savings and investments – enabling higher returns.” 7
Slide 8: Clear strategic focus
Clear strategic focus SAVINGS AND NORDIC DIGITAL INDIVIDUALS INVESTMENTS REGION DISTRIBUTION 8
Slide 9: Three customer offerings targeted at three customer groups
Nordnet has three customer offerings targeted at three customer groups Customer offering Retail Private Banking2 Partner (42%) (45%) (13%) Share of December 2021 savings capital (%) ▪ Savers set aside small amounts of money each month, which Savers1 “Do it over time can grow into a meaningful buffer
Slide 10: One-stop shop for savings and investments
One-stop shop for savings and investments Securities brokerage ✓ ✓ ✓ ✓ Shares, bonds, warrants, options, futures, ETFs, ETPs, certificates Funds ✓ ✓ ✓ ✓ >2,000 mutual funds, index funds, hedge funds, fund-of- funds as well as fund guidance and advisory ✓ ✓ ✓ Stock lending, endowment insurance, indiv
Slide 11: Digital platform for savings and investments since 1996
We have worked hard to perfect our digital platform for savings and investments since 1996 2001: Listing on the 2017: Take-private by Öhman 1996: Birth of Nordnet 2020: Re-listing Stockholm Stock Exchange and Nordic Capital Start-up phase – Geographic and Transformation Capture growth pioneer in onl
Slide 12: Key highlights since IPO
Key highlights since IPO +379 500 customers¹ (+23%²) +35% Income +237bn in AuM3 (+83bn in Net savings¹) +56% Op. profit4 (2021 vs 2020) 71.6 million trades¹ (+22%²) EPK, digital mortgage, DASK New channel features: Own fund company application Article 8/9 ratings Buy/sell dots Get started flow 99.9%
Slide 13: Accelerating growth in customers and savings capital
Accelerating growth in customers and savings capital Number of new customers Savings capital ‘000 SEKbn 380 802 308 565 395 148 272 286 103 96 235 76 200 58 166 136 38 90 104 31 23 28 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 13
Slide 14: Rigorous focus on cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating exp
Slide 15: Revenue growth and operating leverage driving profit growth
Revenue growth together with operating leverage driving significant profit growth Adjusted revenues Adjusted operating expenses Adjusted profit before tax SEKm1 SEKm1 SEKm1 3 628 CAGR 40% 2 679 2 451 CAGR 150% 1 508 CAGR 1% 1 576 1 310 1 117 1 097 1 064 1 141 377 157 2018 2019 2020 2021 2018 2019 20
Slide 16: Revised medium-term financial targets
Revised medium-term financial targets Key: New guidance Old guidance Target Customer growth Average savings capital per customer¹ Dividend payout ratio % SEK (‘000) % 34% 31% 477 Around SEK450k 412 409 416 per customer 19% Around SEK409k per customer 12% Around 15% p.a. 10-15% p.a. “Deliver superior
Slide 17: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 17
Slide 18: Nordnet 2025 strategy
47 Nordnet Nordnet 2025 strategy wy { 4 ; Be & | 18
Slide 19: #1 choice for Nordic savers and investors
ASPIRATION #1 choice for Nordic savers and investors “The Nordic’s most satisfied customers enabled by a state- of-the-art platform for all their savings and investment needs.”
Slide 20: Key strategic ambitions
Key strategic ambitions Engaged ▪ Building the best platform for savings and investments customers ▪ #1 NPS and high customer retention ▪ Upward trend on eNPS Engaged Profitable ▪ Capture Nordic growth potential ▪ Attract and retain top talent employees growth ▪ Stable cost level ▪ Strong compliance
Slide 21: How we will get there
How we will get there 1 2 “Delightful “One-stop shop digital channels for savings and with leading investments” UX” 3 4 “Full process “Data-informed automation organisation and and optimisation” personalized CX” 5 “A scalable cloud- “Best-in-class 6 powered platform” people and operating model” Pred
Slide 22: Channels: Best in class user experience
1 Channels: Best in class user experience “Delightful digital channels with leading UX” Key initiatives NEXT as a financial cockpit and as a consolidator of key customer segment capabilities App to transition from “control of investments on the go” to “live your financial life in the app” including
Slide 23: Channels: Best in class user experience
1 Channels: Best in class user experience “Delightful digital channels with leading UX” Key initiatives NEXT as a financial cockpit and as a consolidator of key customer segment capabilities App to transition from “control of investments on the go” to “live your financial life in the app” including
Slide 24: Key selling proposition
1 Key selling proposition Wide Smooth Leading product UX x x customer range journeys enabled by: Real-world x Scalable agile platform
Slide 25: A typical day on the Nordnet platform
1 A typical day on the Nordnet platform EU market open: ~20k request/s US market open: ~11k request/s EU market close (SE/FI/DE) +118m net fund SEK US market close 285k 265k DAU app 115k DAU web trades 88k x-border trades +1,000 +230m +23m 7.3bn API order operations/s new customers net savings SEK l
Slide 26: Delightful digital channels
1 Delightful digital channels 1 Strategic channel development (“vision-based”) ▪ NEXT as consolidator of key customer segment needs Best platform for savings & investments ▪ App as a standalone channel to manage your savings ▪ Social investing (Shareville) at heart of user experience 2 Tactical chan
Slide 27: NEXT web application
1 NEXT web application 36% of Nordnet users use only or mainly the web 115k Daily Active Users (DAU) with a 21% DAU/MAU ratio 115k Trades per day representing 43% of daily traded value during 2021 Share of traded value per month 27
Slide 28: NEXT strategy
1 NEXT strategy Nordnetbloggen Client Manager ▪ SEO accretive ▪ CM admin portal ▪ Headless CMS ▪ Power of Attorney management ▪ Integrated search ▪ Model portfolio execution ▪ Cybersecurity ▪ Specialised reporting tools Web Trader NEXT jobs-to-be-done 1. Financial cockpit: full overview of savings a
Slide 29: Nordnet app
1 Nordnet app 63% of Nordnet users use only 5%web Only The or mainly the app Nordne t app 265k Daily Active Users (DAU) with a 38% DAU/MAU ratio Only app Mainly 63% 86k Mainly Trades per day representing app 25% of daily traded value during 2021 29 Share of traded value per month
Slide 30: App strategy
1 App strategy Optimize flows App jobs-to-be-done Advantages of app as a medium 1. Standalone: fully-featured savings application 1. Native experience: immediacy, native “live your financial life in the app” extensions, haptic feedback, delightfulness 2. Extension of NEXT on the go: check prices, 2.
Slide 31: Shareville social investing community
1 Shareville social investing community 300k users have shared their portfolios on Shareville 1.8x Traded value of a Shareville user vs a non-Shareville user 2.1x Commissions of a Shareville user vs a non-Shareville user 31
Slide 32: Shareville strategy: integrate with NEXT and app
1 Shareville strategy: integrate with NEXT and app Why do we have Shareville? Why do we want to integrate it? The future 1. Clear part of our mission 1. User experience Shareville to form the heart 2. User-generated content 2. Duplication of of the Nordnet experience 3. Customer attraction and funct
Slide 33: Experience based on your feed
1 Experience based on your feed ▪ Customer-research and competitor benchmarking complete ▪ User’s personalized feed will form central part of NEXT and app experience ▪ Feed will contain social, news, blog, transactions, holdings and other updates in an ‘endless scroll’ 33
Slide 34: One-stop shop for savings and investments
2 One-stop shop for savings and investments Securities brokerage ✓ ✓ ✓ ✓ Extend lead within securities brokerage Funds ✓ ✓ ✓ ✓ Become as strong within Funds as we are in brokerage Pension ✓ ✓ ✓ ✓ Step-change in growth throughout Nordic markets Margin lending ✓ ✓ ✓ ✓ Boost trading power thru capital-
Slide 35: Automated customer journeys
3 Automated customer journeys Degree of automation Lower Higher Foundation Become a customer Inspire me to save and invest Buy or sell a security Open an account Guide me to start saving Buy or sell a fund Deposit & withdraw money Move my savings How am I doing? Manage my identity Find and screen se
Slide 36: Data-informed org & personalized experience
4 Data-informed org & personalized experience Department Personalized dashboards suggestions Data-informed Personalized decisions content Continuous Personalized Improvements communication 36
Slide 37: A cloud-powered platform
5 A cloud-powered platform What our tech strategy aims to achieve Security Scalability Data Speed Agility 37
Slide 38: Increased leverage from Cloud Technology drives innovation pace
5 Increased leverage from Cloud Technology drives innovation pace 35 Managed services Security Scalability 12 Enables innovation and 1 allows focus on core business 2019 2020 2021 % development on Nordnet X
Slide 39: Scaling up development capacity
5 Scaling up development capacity 51 37 138 118 33 25 91 18 2020 2021 2019 2020 2021 2020 2021 2022 FTE FTC #Signed #Development Engineers Teams (EOY) #Engineers
Slide 40: Sustaining Engineering Efficiency
5 Sustaining Engineering Efficiency 7 564 42 3.1 7 220 2.8 5 525 29 Automation Sunsetting 3 174 Cloud migration Team autonomy 2020 2021 2020 2021 2020 2021 2020 2021 Drives improvements in #Releases #Delivered Release JIRA all productivity KPIs JIRAs Lead time Lead time (min) (days)
Slide 41: Availability 2021
5 Availability 2021 The bottom line 99.9% 99.8% How large is this improvement? 496 min vs 173 min downtime in 2020 downtime in 2021 4x Traffic 2020 2021 2021 vs 2019
Slide 42: Best-in-class people
6 Best-in-class people People agenda PURPOSE & STRATEGIC EMPLOYER LEADERSHIP DIVERSITY WORK MODEL VALUES DIRECTION BRANDING Quarterly eNPS +33 +34 +28 +25 +26 +21 +17 +6 +3 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q42020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 42
Slide 43: Values well ingrained throughout the organization
6 Values well ingrained throughout the organization Passion Simplicity Transparency Nordnetters lean We believe that easy By telling it like it is forward and walk the to-use products, and being open extra mile to inspire straight to the point externally as well as loyalty and communication and inte
Slide 44: Efficient operating model with clear responsibilities
6 Efficient operating model with clear responsibilities ▪ One product and tech organization supporting all countries ▪ Front-to-back responsibility in the business lines will allow for optimization in the P&L, process and risk dimensions ▪ The countries are responsible for marketing, sales and custo
Slide 45: ESG embedded in Nordnet’s DNA
7 ESG embedded in Nordnet’s DNA A responsible and sustainable business Marja Carlsson, new ▪ Practice transparency, compliance and a high ethical standard Sustainability Manager ▪ Reduce negative impact on the environment and climate ▪ Promote physical and mental health through a good working enviro
Slide 46: Education and inspiration to help customers make informed decisions
71 We focus on education and inspiration to help our customers make informed decisions ▪ Nordnet “Stock School” in each of the four countries ▪ Nordnet blog, podcasts and videos – largest educational video platform in the Nordics ▪ Guidance flow – monthly savings from zero to hero in six easy steps
Slide 47: Leading platform for sustainable investments
71 Leading platform for sustainable investments ▪ First to offer screening of mutual funds and ETFs to exclude unwanted holdings ▪ First platform to introduce Article 8 / Article 9 tagging of funds ▪ Rich sustainability dataset for mutual funds and ETFs ▪ Guidance flow for mutual funds can populate
Slide 48: The Re:turn initiative
7 The Re:turn initiative Savings making a difference. For the environment. SEK 0.10 donated to an environmental cause for every trade made Customers to vote quarterly to which causes the donations are made 48
Slide 49: Strong compliance and risk management
8 Strong compliance and risk management Three lines of defence Board and Executive Management overall responsible Risk Control and Business Line Management Internal Audit Compliance functions First line of defense: Second Line of Defense: Third line of defense: Risk Ownership Control Assurance Owns
Slide 50: Nordnet 2025 strategy
Nordnet 2025 strategy 50
Slide 51: Deep-dives: Market
Deep-dives: Market 51
Slide 52: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 52
Slide 53: Attractive market with strong and sustainable growth prospects
We operate in an attractive market with strong and sustainable growth prospects Consistent growth in the Nordic …with Nordnet’s addressable market1 …and digital platforms2 significantly savings market… growing faster… outgrowing the market Savings capital (SEKtln) Savings capital (SEKtln) Savings ca
Slide 54: Digital platforms are taking market share
Digital platforms are taking market share OTP market share ‘21 Addressable savings capital SEKtln 19% 16% 7% 9% Key drivers of switching to digital platform ✓ Improvement in user Addressable market experience Extended market ✓ Access to broader range of Online platform market share of current addres
Slide 55: Nordnet competes primarily with online platforms and incumbent banks
Nordnet competes primarily with online platforms and incumbent banks Sweden Norway Denmark Finland Main online platforms Continued migration from incumbent banks to digital platforms Main incumbent banks 55
Slide 56: Strong growth runway across the Nordics
Strong growth runway across the Nordics Addressable market size and Nordnet’s market share by country 20211 SEKtln Nordnet market share ~6% ~7% ~5% ~9% ~6% ~2.1x ~1.6 ~13.0 ~3.3 ~2.0 ~6.1 Total addressable market (1) Source: SCB, Svensk Försäkring, SSB, Finans Norge, Nationalbanken Denmark, Statisti
Slide 57: Strong growth runway across the Nordics
Strong growth runway across the Nordics Addressable market size and OTP’s market share by country 20251 SEKtln OTP market share of current market Extended market ~21% ~20% ~10% ~12% ~17% ~2.5x ~2.9 ~20.5 ~0.7 ~6.8 ~3.2 ~2.5 ~2.6 ~17.3 ~8.3 Total addressable market (1) Source: SCB, Svensk Försäkring,
Slide 58: Sweden
Sweden Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Other OTPs Market size Nordnet market share Nordnet’s share of addressable market 4% 3% 6% 1,854 1,709 16% 1,5
Slide 59: Sweden
Sweden From Analyst Presentation October 2020 Funds up +SEK21.2 bn or +38% Pension assets up +SEK9.8 bn or +42% Private Banking assets up +SEK62bn Note: Comparison figures refers to full year 2021 vs 2020 59
Slide 60: Sweden
Sweden Other achievements Customer behavior Record number of IPOs in Sweden distributed Sharpened mortgage – lowest interest rate in Sweden 690k savings capital per 3 100 income per 5.2 trades per customer customer (SEK)1 customer (SEK)2 per month3 Fully digitized occupational pension sales and tran
Slide 61: Norway
Norway Share of total population Addressable market growth outlook2 Market share of addressable market 2 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size Nordnet market share Nordnet’s share of addressable market Extended 2% 7% 1,143 6% ~2.0 5.4 ~1.7
Slide 62: Norway
Norway From Analyst Presentation October 2020 Funds up +SEK15.9 bn or +69% New fund pricing model introduced EPK ”own pension” account launched Assets up +SEK3.5 bn Private Banking assets up +SEK8.5bn Note: Comparison figures refers to full year 2021 vs 2020 62
Slide 63: Norway
Norway Other achievements Customer behavior #1 domestic broker on Oslo børs Growing the fastest in mutual funds in ASK in Norway 379k savings capital per 2 500 income per 4.7 trades per customer customer (SEK)1 customer (SEK)2 per month3 101k new customers and 43% growth y-o-y 69% own shares 39% own
Slide 64: Denmark
Denmark Share of total population Addressable market growth outlook3 Market share of addressable market3 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share Extended
Slide 65: Denmark
Denmark From Analyst Presentation October 2020 Funds up +SEK10.2 bn or +75% Good traction in monthly savings Danish Aktiesparkonto (ASK) launched Market share >20% already ”Livrente” pre-study underway Note: Comparison figures refers to full year 2021 vs 2020 65
Slide 66: Denmark
Denmark Other achievements Customer behavior Step change in awareness in the Danish market “Hyper growth” in new customers and net savings 522k savings capital per 3 000 income per 4.1 trades per customer customer (SEK)1 customer (SEK)2 per month3 Strong growth in monthly savings to Denmark 77% own
Slide 67: Finland
Finland Share of total population Addressable market growth outlook2 Market share of addressable market2 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share Extended
Slide 68: Finland
Finland From Analyst Presentation October 2020 Funds up +SEK6.3 bn or +75% Revenue per customer up 13% ”Finnish wrapper” pre-study underway Note: Comparison figures refers to full year 2021 vs 2020 68
Slide 69: Finland
Finland Other achievements Customer behavior #1 market share in FASK (76%) accounts #1 in trades on Nasdaq Helsinki 2021 307k savings capital per 1 600 income per 2.7 trades per customer customer (SEK)1 customer (SEK)2 per month3 105k new customers and 27 % growth y-o-y 67% own shares 52% own funds
Slide 70: #1 pan-Nordic digital savings and investment platform
#1 pan-Nordic digital savings and investment platform Well diversified revenues Critical mass in all countries Revenue margin Nordnet’s 2021 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)1 SEKm Dec 2020 Dec 2021 Growth 66 Finland 235 300 43% 58 20% 33
Slide 71: Deep-dives: Pan-Nordic digital platform
Deep-dives: Pan-Nordic digital platform 71
Slide 72: Lunch break
Lunch break Please be back at 12:20
Slide 73: Deep-dives: Growth
Deep-dives: Growth 73
Slide 74: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 74
Slide 75: Six main revenue growth drivers
Nordnet has six main revenue growth drivers New customer Revenue1 growth SEKbn 3.6 New net savings 2.7 Savings capital growth 1.5 1.3 Product penetration New product 2018 2019 2020 2021 launches Opportunistic (1) Adjusted revenue (SEK), subtracting SEK66m in 2019 75 M&A
Slide 76: Continued acceleration of long-term growth
Continued acceleration of long-term growth Customers Savings capital Thousand SEKbn 1 601 Savings capital (LHS) Net savings (RHS) 900 150 802 800 135 1 221 120 700 105 600 565 914 90 765 500 82 83 75 669 395 400 567 60 490 272 286 433 300 367 395 235 45 344 200 200 166 30 136 90 104 23 21 100 16 14
Slide 77: New customers are younger, more women, more savings in funds
New customers are younger, higher share of women and have more savings in funds Share of customers per cohort and age1 Share of customers by cohort and gender1 % (‘000) Pre 2020 2020 2021 1 601 914 310 351 4% 3% 2% 2% 22% 2021 3% 28% 34% 36% 20% 2020 2% 69% Male 1% 64% 62% 58% Pre 2020 Female Corpor
Slide 78: New customers trade more via the app and cross-border
New customers trade more via the app and cross-border Revenue margin 2021 Share of cross-border bps % Pre 2020 2020 2021 All 45% 85 79 40% 53 35% 43 30% 25% 20% Pre 2020 2020 2021 All Q1 Q2 Q3 Q4 Share of trades per application 2021 Turnover of brokerage capital (annualized) % Pre 2020 2020 2021 All
Slide 79: Embedded growth in existing customer base
Embedded growth in Nordnet’s existing customer base as younger customers accumulate and inherit wealth Strong future growth outlook Distribution of Nordnet’s savings capital and number of customers by age1 Average AUM (SEK, RHS) Share of total customers (%, LHS) 2 Share of new customers (%, LHS) 4,0
Slide 80: Product penetration over time
Product penetration over time Evolution of product penetration and savings capital by month during the first 2 years as Nordnet customer1 Savings capital per customer Average number of products per customer SEK thousand # Pre 2020 2020 2021 Pre 2020 2020 2021 300k 3.0 250k 2.5 200k 2.0 150k 1.5 100k
Slide 81: One-stop shop for savings and investments
One-stop shop for savings and investments “Feature complete one-stop-shop in all Nordic markets” Securities brokerage ✓ ✓ ✓ ✓ Extend lead within securities brokerage Funds ✓ ✓ ✓ ✓ Become as strong within Funds as we are in brokerage Pension ✓ ✓ ✓ ✓ Step-change in growth throughout Nordic markets Mar
Slide 82: This is Securities Brokerage
Securities Funds Pension Credit Private banking Partner Brokerage This is Securities Brokerage Fully integrated Securities business: Corporate Business ▪ Shares, bonds, warrants, options, futures, Actions Development certificates, stock lending and margin lending IPOs, AGM/EGMs, Exchange Traded Prod
Slide 83: Leading securities brokerage offering
Securities Funds Pension Credit Private banking Partner brokerage Leading securities brokerage offering Brokerage initiatives, product and features shipped Customer behavior1 Improved trading functionality in web +1 million 1.8 trn customers made a trade In traded value | SEK Increased trading capab
Slide 84: Leading securities brokerage offering
Securities Funds Pension Credit Private banking Partner brokerage Leading securities brokerage offering Brokerage capital development SEKbn Plans for 2022 and beyond Sweden Norway Denmark Finland Launch new global markets and trading venues 573 35% to increase global trading 123 404 132 44% 89 268 9
Slide 85: Case study: Crypto-related instruments
Securities Funds Pension Credit Private banking Partner brokerage Case study: Crypto-related instruments Focus on education and ensuring customers understand products and risks ~1% of Nordnet customers Nordnet provides access to crypto-backed hold crypto-related assets ETNs/ETCs on regulated trading
Slide 86: This is Mutual Funds
Securities Funds Pension Credit Private banking Partner brokerage This is Mutual Funds Fully integrated Funds business: Fund Savings Open fund platform ▪ >2,000 mutual funds, including index funds, and guidance flows hedge funds and multi-asset funds ▪ Best in class screening tools and guidance ▪ Fu
Slide 87: Leading Nordic fund supermarket
Securities Funds Pension Credit Private banking Partner brokerage Leading Nordic fund supermarket Fund initiatives, product and features shipped Customer behavior1 Mutual Funds broken out as its own business area 154bn AuM in funds SEK 29bn in Nordnet funds SEK “Move my savings” automated digital fl
Slide 88: Leading Nordic fund supermarket
Securities Funds Pension Credit Private banking Partner brokerage Leading Nordic fund supermarket Fund capital Plans for 2022 and beyond SEKbn Sweden Norway Denmark Finland o/w 20% 154 pension Fund-of-funds to be launched in all four markets 15 61% 24 100 51% 81 8 39 14 57 6 10 23 51% ”One flow” for
Slide 89: This is Pension
This is Pension Wholly-owned pensions group: ▪ Complete pension solutions in Sweden for both private individuals and employers, with additional offerings in Norway and Denmark ▪ Private pension savings and individual pensions savings products offered in Sweden, Norway and Denmark Pension ▪ Insurance
Slide 90: Expanding pension offering
Securities Funds Pension Credit Private banking Partner brokerage Expanding pension offering … Pension initiatives, product and features shipped Customer behavior1 Norwegian occupational pension (EPK) 232k Customers 794k Avg AuM per pension customer Digital occupational pension concept for SME:s +18
Slide 91: Set to benefit from continued deregulation
Securities Funds Pension Credit Private banking Partner brokerage …set to benefit from continued deregulation Pension capital SEKbn Plans for 2022 and beyond Sweden Norway Denmark o/w 32% private endowment 184.5 insurances Offer Finnish endowment wrapper product 29.3 35% 126.8 20.2 21.3 51% 89.6 16.
Slide 92: Case study: Livrente
Securities Funds Pension Credit Private banking Partner brokerage Case study: Livrente What is “livrente”? ▪ ”Livrente” is a Danish pension product which pays Development addressable livrente market a monthly amount as long as you live SEK trillion ▪ Some 50% of the Danish pension market is Addressa
Slide 93: This is Credit
Securities Funds Pension Credit Private banking Partner brokerage This is Credit Highly complementary suite of credit products ▪ Margin lending allows customers to amplify returns ▪ Own mortgage to attract and retain HNWIs ▪ Automated credit monitoring ▪ Capital-light credit resulting in high RoEs 2
Slide 94: Leading-edge margin lending product for extra yield
Securities Funds Pension Credit Private banking Partner brokerage Margin lending Leading-edge margin lending product for extra yield Lending initiatives, product and features shipped Customer behavior2 Model for collateral value boost on low-risk portfolios Dynamic interest rate dependent on use cas
Slide 95: Most attractive mortgage offering in Sweden
Securities Funds Pension Credit Private banking Partner brokerage Mortgage Most attractive mortgage offering in Sweden Lending initiatives, product and features shipped Customer behavior1 Savings capital per customer +37% Lowest market list rate at 0.65% >21x ~10,300,000 ~491,000 Increased max LTV t
Slide 96: Unsecured loan targeting lower risk segments
Securities Funds Pension Credit Private banking Partner brokerage Unsecured loans Unsecured loan targeting lower risk segments Lending initiatives, product and features shipped Customer behavior1 Stable portfolio quality throughout the pandemic 90% automated decisions 50% Nordnet-branded loans Fully
Slide 97: Modern holistic Private Banking offering
Securities Funds Pension Credit Private banking Partner brokerage Modern holistic Private Banking offering PB initiatives, product and features shipped Customer behavior 333bn Mortgage to 60% LTV and best listed rate in Sweden Strengthened offering with partners(Penser, ABG etc) savings capital +47%
Slide 98: Partners are a force multiplier
Securities Funds Pension Credit Private banking Partner brokerage Partners are a force multiplier Partner initiatives, product and features shipped Customer behavior New, improved process for unlisted shares in KF >100bn savings capital +12bn net savings 2021 Improved process to “move my pension” in
Slide 99: Strong revenue growth driven by higher savings capital and resilient margins
Strong revenue growth driven by higher savings capital and resilient margins Adjusted revenue by income type Savings capital by product SEKm1 SEKbn Brokerage Funds Deposits Net transaction related Net non-transaction related Net Interest income Other income² 802 Adjusted revenue / avg. savings capit
Slide 100: Deep-dives: Strong, sustainable growth
Deep-dives: Strong, sustainable growth 100
Slide 101: Deep-dives: Leverage and capital
Deep-dives: Leverage and capital 101
Slide 102: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 102
Slide 103: Rigorous focus on cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating exp
Slide 104: Financial education through savings economists and investment coaches
Financial education through our visible savings economists and investment coaches… Frida Bratt Alexander Gustafsson Axel Karlsson Savings economist Investment coach Active trading manager ▪ Weekly podcast host for Sparpodden ▪ 2,155 media quotes / statements ▪ Frequent interaction with active trader
Slide 105: More than one million members in our community
…and more than one million members in our community, with millions of views, streams and sessions… 11,2 12,6 million million views sessions 113K followers 89K 305K followers users 5,2 6,1 million million 61K 70K entries streams followers followers 36K followers Note: Follower-base as of January, 202
Slide 106: Results in highly profitable customer growth
…results in highly profitable customer growth High share of low-cost organic searches together with …results in low customer acquisition cost and a very increasing retention rates… attractive customer lifetime value Share of new customers by Retention of active customer base Nordnet’s customer acqui
Slide 107: Improved cost to income ratio driving profit margin
Improved cost to income ratio driving profit margin Adjusted cost income ratio1 Adjusted profit margin1 55% 90% 85% 55% 77% 50% 48% 80% 73% 67% 45% 70% 40% 60% 35% 50% 30% 40% 25% 40% 25% 22% 31% 20% 16% 30% 15% 20% 10% 10% 10% 5% 0% 0% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 (1)
Slide 108: Revenue growth and operating leverage driving profit growth
Revenue growth together with operating leverage driving significant profit growth Adjusted revenues Adjusted operating expenses Adjusted profit before tax SEKm1 SEKm1 SEKm1 3 628 CAGR 40% 2 679 2 451 CAGR 150% 1 508 CAGR 1% 1 576 1 310 1 117 1 097 1 064 1 141 377 157 2018 2019 2020 2021 2018 2019 20
Slide 109: Nordnet has a capital light business model
Nordnet has a capital light business model Nordnet’s income model Off balance sheet On balance sheet Liquidity portfolio3 Credit portfolio Savings capital SEK ~802bn SEK ~49bn SEK ~25bn ~72% ~19% ~9% ~49% ~35% ~16% Margin Mortgage Shares Funds Deposits Unsecured lending4 lending Net commission Net c
Slide 110: High quality loan portfolio with very low loan losses
High quality loan portfolio with loan losses remaining at very low levels Dec 2021 savings capital Usage of deposits Lending SEKbn SEKbn SEKbn 1 2 Lending Liquidity portfolio Unsecured Mortgage Margin lending Funds 74 25.4 19% 60 19.7 12.4 49 802 9% Deposits 41 9.2 6.5 8.9 72% 20 25 Brokerage 4.0 4.
Slide 111: Strong capital position
Strong capital position Total capital ratio Leverage ratio % % Capital requirement Additional Tier 1 ratio Leverage ratio Requirement including P2 guidance CET1 ratio Buffer over total capital requirement Minimum requirement 2,7% 4,2% 4,5% 4.8% 21.8% 21.6% 4.0% 19.7% 3.8% 3.7% 6.3% 3,9% 5.9% 17,6% 1
Slide 112: Capital requirements and deposit development
Capital requirements and deposit development Risk based & Leverage Ratio requirements Total customer deposits December 2021, SEK million Conglomerate | 2007-12 – 2021-12 3,756 70 000 80 1,100 3,078 2,978 60 000 70 710 461 Total customer deposits (SEK bn) CET1 60 Deposits per customer (SEK) 50 000 1,
Slide 113: Attractive return on equity
Attractive return on equity Adjusted return on equity1,2 Adjusted return on equity excluding intangible assets1,2,3 70% 70% 60% 60% 57% 56% 50% 50% 44% 40% 40% 40% 30% 30% 22% 21% 20% 16% 20% 13% 14% 10% 10% 10% 7% 10% 0% 0% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 (1) Adjusted op
Slide 114: Dividend policy
Dividend policy Nordnet’s dividend policy remains: “Deliver superior total returns to shareholders via a pay-out ratio of 70% of statutory net income” 70% 114
Slide 115: Deep-dives: Operating leverage and capital light
Deep-dives: Operating leverage and capital light 115
Slide 116: Summary and Q&A
Summary and Q&A 116
Slide 117: Key strategic ambitions
Key strategic ambitions Engaged ▪ Building the best platform for savings and investments customers ▪ #1 NPS and high customer retention ▪ Upward trend on eNPS Engaged Profitable ▪ Capture Nordic growth potential ▪ Attract and retain top talent employees growth ▪ Stable cost level ▪ Strong compliance
Slide 118: How we will get there
How we will get there 1 2 “Delightful “One-stop shop digital channels for savings and with leading investments” UX” 3 4 “Full process “Data-informed automation organisation and and optimisation” personalized CX” 5 “A scalable cloud- “Best-in-class 6 powered platform” people and operating model” Pred
Slide 119: Revised medium-term financial targets
Revised medium-term financial targets Key: New guidance Old guidance Target Customer growth Average savings capital per customer¹ Dividend payout ratio % SEK (‘000) % 34% 31% 477 Around SEK450k 412 409 416 per customer 19% Around SEK409k per customer 12% Around 15% p.a. 10-15% p.a. “Deliver superior
Slide 120: Nordnet Capital Markets Day
Nordnet Capital Markets Day 120
Slide 121: Appendix
417 Nordnet Appendix
Slide 122: Customer growth accelerating in all markets
Customer growth accelerating in all markets (thousand) 451 398 364 337 326 303 269 239 235 210 222 193 202 150 98 111 71 82 51 54 57 62 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 483 378 331 280 210 228 184 147 120 110 126 85 100 86
Slide 123: Savings capital growth
Savings capital growth (SEKbn) Savings capital (LHS) Net savings (RHS) Savings capital (LHS) Net savings (RHS) 350 35 350 35 300 30 300 30 25 25 250 250 20 20 200 200 15 342 15 150 150 10 248 10 100 100 5 171 5 133 128 50 89 0 50 103 113 122 63 76 92 0 27 34 35 53 61 0 10 11 14 16 20 -5 0 -5 2011 20