Slide 1: A strong year 2024: Mandatum's assets under management rose to EUR 14 billion
A strong year 2024: Mandatum's assets under management rose to EUR 14 billion, record-high net flow close to EUR 1 billion Q4 2024 Investor presentation
Slide 2: October–December 2024
October–December 2024 Fee result up by 39% y/y to EUR 18.6 million − Client AuM increased by 5% q/q to EUR 14.0 billion due to continued positive net flow and positive asset returns. The most significant part of the increase came from I&WM, all client segments contributed to the growth − Net flow
Slide 3: January–December 2024
January–December 2024 Fee result up by 27% y/y to EUR 67 million − Client AuM increased by 17% y/y to EUR 14.0 billion − Net flow EUR 983 million, up by 30% y/y, 8% of client AuM − Improved cost-efficiency Net finance result down by 9% y/y to EUR 136 million − YTD investment return 4.3%1 − Sprea
Slide 4: Mandatum's financial targets
Mandatum’s financial targets TARGET 1–12/2024 (1–12/2023) Annual net flows Net flow EUR 983 (754) million, (medium-term) 8 (7)% of Client AuM 5% of AuM2 Focus on strong and profitable growth of capital-light offering1 Disciplined Fee margin 1.2 (1.2)%3 Pricing and fee margin Improving Cost/income ra
Slide 5: Financial performance
Financial performance
Slide 6: Overview of the 10–12/2024 results
Overview of the 10–12/2024 results RESULTS EURm 10–12/2024 10–12/2023 Change, % 1–12/2024 1–12/2023 Change, % Fee result 18.6 13.4 39% 66.6 52.6 27% Net finance result 23.7 24.9 -5% 135.6 148.6 -9% Result related to risk policies 2.2 8.0 -73% 25.4 17.9 42% Other result -9.4 0.0 n.m. -24.7 -8.7 n.m.
Slide 7: Strong growth in fee result, lower investment return
Strong growth in fee result, lower investment return PROFIT BEFORE TAXES (EURm) FEE RESULT (EURm) NET FINANCE RESULT (EURm) 66.6 148.6 210.4 202.9 135.6 52.6 18.6 46.3 13.4 35.1 24.9 23.7 1-12/2023 1-12/2024 10-12/2023 10-12/2024 1-12/2023 1-12/2024 10-12/2023 10-12/2024 1-12/2023 1-12/2024 10-12/20
Slide 8: Result by segments
Result by segments RESULTS 10–12/2024 EURm Institutional Corporate Retail With-profit Other Total 10–12/2023 Fee result 8.4 6.2 4.1 - - 18.6 13.4 Insurance service result - 4.6 2.5 - - 7.1 8.7 Fee result from investment and asset management services 8.4 1.5 1.6 - - 11.5 4.7 Net finance result - - -
Slide 9: Quarterly results since Q1/22
Quarterly results since Q1/22 100 84 80 76 63 60 56 48 46 47 45 40 35 32 20 0 -20 -21 -22 -40 1-3/2022 4-6/2022 7-9/2022 10-12/2022 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-3/2024 4-6/2024 7-9/2024 10-12/2024 EURm 1–3/22 4–6/22 7–9/22 10–12/22 1–3/23 4–6/23 7–9/23 10–12/23 1–3/24 4–6/24 7–9/24 10–12/
Slide 10: Capital-light segments
_ Capital-light | segments
Slide 11: Q4 net flow EUR 392m, up 86% y/y
Q4 net flow EUR 392m, up 86% y/y NET FLOW (EURm) CLIENT ASSETS UNDER MANAGEMENT (EURbn) Net flow YTD annualised Net Flow % of BoP AuM Institutional & WM Corporate Retail 450 20% 392 14.0 400 18% 13.3 13.0 12.5 350 16% 11.9 11.2 11.2 3.5 10.8 3.5 291 14% 10.3 3.5 300 3.4 3.2 251 246 12% 3.1 3.1 250 2
Slide 12: Client AuM up 17% y/y, net flow reached nearly EUR 1bn
Client AuM up 17% y/y, net flow reached nearly EUR 1 bn CLIENT ASSETS UNDER MANAGEMENT (EURbn) NET FLOW DEVELOPMENT (EURm) Institutional & WM Corporate Retail Growth 1-12/2024 -24 y/y -0.8% Retail 14.0 Retail 1-12/2023 -75 -2.5% 11.9 3.5 10% 3.2 1-12/2024 Corporate 96 4.2% 2.6 14% Corporate 2.3 1-12
Slide 13: Steady growth in Institutional and wealth management continued
Steady growth in Institutional and wealth management continued AUM BY CLIENT SEGMENT (EURm) AUM BY PRODUCT (EURm) COMMENTS Institution Finland Institution International Credit Equity Ultra-high-net-worth Private wealth management Alternative Allocation products 22% AuM growth y/y in the I&WM Exter
Slide 14: Fee income up 14% y/y – Cost/income ratio down
Fee income up 14% y/y – Cost/income ratio down FEE INCOME (EURm)1 FEE INCOME MARGIN (%)2 FEE MARGIN UNCHANGED 153 1.2% 1.2% Fee income increased by 14% 135 due to EUR 1.9 billion higher average AuM FY fee margin unchanged at 1.2% 1-12/2023 1-12/2024 31 Dec 2023 31 Dec 2024 DECREASING CLIENT AUM
Slide 15: With-profit segment
| With-profit segment
Slide 16: With-profit segment: Net finance result
With-profit segment: Net finance result COST OF LIABILITIES I.E. UNWINDING INVESTMENT RETURN (EURm)1 NET FINANCE RESULT (EURm) & DISCOUNT (EURm) Investment 4.1% 0.3% return (%) 164 -3 19 + = 10 13 -144 10-12/2023 10-12/2024 10-12/2023 10-12/2024 10-12/2023 10-12/2024 Quarterly investment return +0
Slide 17: Lower discount rate for with-profit IFRS liabilities
Lower discount rate for with-profit IFRS liabilities IFRS 17 DISCOUNT CURVE WITH-PROFIT IFRS LIABILITES (EURm) The movement in discount curve increased with-profit liabilities by EUR 1 million in 1–12/2024 and decreased with-profit liabilities by EUR 15 million in 10–12/2024 Actual Forecast Unwi
Slide 18: With-profit investment portfolio by asset class
With-profit investment portfolio by asset class ORIGINAL PORTFOLIO, SEGREGATED PORTFOLIO, EUR 3,001 million EUR 674 million Original Portfolio Fixed income and money market weight decreased due to EUR 250 million cash 3% 2% due to repayment of old Tier 2 loan 7% Underlying asset allocation large
Slide 19: IFRS Liability and asset sensitivity (original portfolio)
IFRS Liability and asset sensitivity (original portfolio) Assets and liabilities are managed by alignment of assets and active management actions SENSITIVITY BY MATURITY BUCKETS, RATES DOWN 100BPS COMMENTS Hedging 142% 119% 77% 37% 0% 78% Interest rate risk related to first eight ratio years of li
Slide 20: Solvency and capital generation
Solvency and capital generation
Slide 21: Strong Solvency II ratio supports the dividend proposal
Strong Solvency II ratio supports the dividend proposal QUARTERLY SOLVENCY POSITION (EURm)1 SOLVENCY II RATIO SENSITIVITY Base 210% Own funds SCR Solvency II ratio 3,500 260% Listed & private 237% equities (20%) 238% 233% 240% 3,000 221% 221% 220% Interest 210% 204% 2,500 2,323 rates (100)bps 2,200
Slide 22: Stable development on Solvency Capital Requirement continued
Stable development on Solvency Capital Requirement continued BREAKDOWN OF OWN FUNDS (EURm) Solvency II ratio COMMENTS 210% Own funds increased by EUR 57 million during Q4, 299 551 59 prior proposed dividend distribution 2,048 -131 -332 1,601 Market risk, and especially equity risk are the most s
Slide 23: Organic capital generation exceeding net profit
Organic capital generation exceeding net profit COMPONENTS OF ORGANIC CAPITAL GENERATION, SEGMENTAL CONTRIBUTION, 1–12/2024 (EURm) 1–12/2024 (EURm) 15 221 55 221 15 191 At 200% Solvency II 167 ratio Own funds generations SCR reduction Capital release Organic capital With-profit Capital light Organic
Slide 24: Key drivers of capital generation (1-12/2024)
Key drivers of capital generation (1-12/2024) KEY DRIVERS Organic capital generation 24% Own funds: Stable growth of fee 221% 210% result and strong net finance result -29% -5% SCR: Predictable, continuous run-off of with-profit liabilities. However, this is partly offset by increase of capital-
Slide 25: Outlook
Outlook
Slide 26: Outlook for year 2025
Outlook for year 2025 The fee result is expected to increase from year 2024 provided that the market environment remains stable. While Mandatum has been able to maintain disciplined pricing and stable fee margins within capital-light customer segments during years 2022, 2023 and 2024, the fee resu
Slide 27: Appendix
Appendix Supporting materials
Slide 28: Top ranked asset and wealth manager with strong investment expertise
Top ranked asset and wealth manager with strong investment expertise and proven track record Mandatum has sticky and satisfied customer base benefitting from own direct distribution network MANDATUM RANKED THE TOP INSTITUTIONAL ASSET MANAGER IN FINLAND* NET PROMOTER SCORE Service Performance: Averag
Slide 29: Annualised quarterly net flow vs. Peers (% of AuM)
Annualised quarterly net flow vs. Peers (% of AuM1) Q1 24 Q2 24 Q3 24 Q4 24 15% 10% 5% 0% -5% -10% -15% -20% Mandatum Peer 1 Peer 2 Peer 3 Peer 4 Source: company info. (1) Based on quarterly AuM. 29
Slide 30: Market leading ESG-ratings
Market leading ESG-ratings ESG rater Mandatum’s ESG rating MSCI Disclamer statement available at www.mandatum.fi/en/group/investors/quarterly-reporting-and-presentations/latest-updates-for-investors/ 31
Slide 31: Result by segments
Result by segments RESULTS 1–12/2024 EURm Institutional Corporate Retail With-profit Other Total 1–12/2023 Fee result 26.3 22.7 17.7 - - 66.6 52.6 Insurance service result - 19.9 10.2 - - 30.1 31.3 Fee result from investment and asset management services 26.3 2.8 7.4 - - 36.5 21.3 Net finance result
Slide 32: Development of policy savings (original portfolio)
Development of policy savings1 (original portfolio) WITH-PROFIT POLICY SAVINGS, 2019–2024 (EURm) COMMENTS 3,000 With-profit portfolios decreased in line with expectations 2,583 2,500 2,294 Policy savings with highest (3.5% 422 2,105 and 4.5%) guarantees down YTD by 400 1,947 EUR -131 million and
Slide 33: CSM development – 1–12/2024
CSM development – 1–12/2024 CSM 1 DEVELOPMENT, 1–12/2024 (EURm) CSM 1 SENSITIVITY, 12/2024 (EURm) 74 3 Discount rate (100)bps -19 499 - 44 12 1 452 Discount rate +100bps 21 Equity markets (20)% -59 Equity markets +20% 59 New business CSM Experience variance CSM release 12/2023 Accreted interest Assu
Slide 34: Sustainalytics copyright notice
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Slide 35: Investor contacts
Investor contacts: Lotta Borgström Vice President, Investor Relations Tel. +358 50 022 1027 lotta.borgstrom@mandatum.fi Mandatum Bulevardi 56, 00120 Helsinki www.mandatum.fi