Nordnet Ab · OMXSTO:SAVE
Nordnet Ab — Q1 2021 Earnings Presentation
31 slides from Nordnet Ab's earnings presentation, April 2021
Slide 1: Q1 results 2021
Q1 results 2021
Slide 2: Key highlights first quarter 2021
Key highlights first quarter 2021 Record inflow of new customers, 39 percent annual growth Savings capital at all-time high, 648 BSEK, and high net savings Highest number of trades for a single quarter, and large interest for cross-border trading Successful launch of the new Norwegian pensio
Slide 3: Financial highlights first quarter 2021
Financial highlights first quarter 2021 Customers Savings capital Number of trades Thousand SEKbn Million +39% +83% +61% 1,389 648 23 1,002 355 14 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 Adjusted revenues Adjusted operating expenses Adjusted profit before tax SEKm1 SEKm1 SEKm1 +73% 1,114 +12
Slide 4: Financial highlights first quarter 2021
Financial highlights first quarter 2021 SEKm unless otherwise stated Q1 2021 Q4 2020 QoQ % Q1 2020 YoY % Condensed P&L1 Adjusted total income 1 114 767 45% 644 73% Adjusted operating expenses (280) (287) (2%) (259) 8% Adjusted profit before tax 830 473 75% 367 126% KPIs New customers +167,200 +98,60
Slide 5: Continued acceleration of long-term growth
Continued acceleration of long-term growth Customers Savings capital Thousand SEKbn 1,389 648 1,221 565 914 395 765 669 567 272 286 490 235 433 200 367 395 314 344 166 136 193 224 90 102 90 104 157 86 103 128 49 55 39 21 36 2010 2018 2005 2007 2020 2008 2011 2013 2015 2017 3M 2021 2004 2006 2009 201
Slide 6: Strong quarter in customer growth and net savings
Strong quarter in customer growth and net savings New customers by month Net savings per month Thousand SEKbn 2020 2021 167 2020 2021 27 24 66 21 55 50 89 46 14 37 38 11 9 9 26 24 23 7 21 20 6 6 18 18 16 17 5 4 4 4 4 3 2 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3M 3M Jan Feb Mar Apr May Jun
Slide 7: Only pan-Nordic digital savings and investment platform at scale
Only pan-Nordic digital savings and investment platform at scale Sweden is still the largest market… …and other Nordic countries are …at higher margins growing faster… Nordnet’s LTM 3M 2021 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)1 Mar 2020 Mar
Slide 8: Continued strong customer and savings capital growth across our geographies
Continued strong customer and savings capital growth across our geographies Sweden Norway Customers Savings capital Customers Savings capital Thousand SEKbn Thousand SEKbn +11% +65% +122% 415 +81% 276 288 110 373 152 175 50 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 Denmark Finl
Slide 9: 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 648 Adjusted revenue / avg. savings capit
Slide 10: Significant growth in number of trading customers with an increased interest for cross-border trading
Significant growth in number of trading customers with an increased interest for cross-border trading Trading customers Share of cross-border trades % 100% 700 000 35% 90% 600 000 30% Number of trading customers 80% Share of all customers 70% 500 000 25% 60% 400 000 20% 50% 300 000 15% 40% 30% 200 0
Slide 11: Strong customer satisfaction driving market share gains
Strong customer satisfaction driving market share gains Customer satisfaction remains at high levels in all countries… NPS …which translates into increasing market shares across our geographies Market share based on number of trades1 on the relevant exchange (%) Q1 2020 Q1 2021 11.4% 11.9% 10.9% 6.9
Slide 12: Successful launch of Norwegian EPK pension account
Successful launch of Norwegian EPK pension account EPK market share* 25% * Market share of those customers 12 who have made an active choice
Slide 13: Select Q1 2021 product releases
Select Q1 2021 product releases New fund instrument pages on NEXT New fund pages in app 13
Slide 14: Select Q1 2021 product releases
Select Q1 2021 product releases Buy/sell markers on instrument pages Availability on Critical Journeys Q1 2021 99.9% 14
Slide 15: Financial performance
Financial performance
Slide 16: Strong momentum in customer and savings capital development
Strong momentum in customer and savings capital development Customers Savings capital by asset class Thousands SEKbn 14% 19% 19% 19% 26% 25% 27% 34% 39% 412 412 409 409 403 401 404 416 426 1,389 Brokerage Funds Deposits 648 65 1,221 565 1,123 1,069 60 118 1,002 478 882 914 425 61 100 855 395 795 365
Slide 17: Step change in all major income streams
Step change in all major income streams… Adjusted revenue by income stream SEKm Net transaction related income Net non-transaction related income Net interest income Net financial transactions Other income LTM 3M 2021: Full year 2019: SEK1,508m Full year 2020: SEK2,679m SEK3,148m 1 114 19 168 767 11
Slide 18: …with stable operating expenses…
…with stable operating expenses… Adjusted operating expenses SEKm General administrative expenses Depreciation and amortisation Other operating expenses LTM 3M 2021: Full year 2019: SEK1,097m Full year 2020: SEK1,064m SEK1,085m 295 287 280 270 272 12 261 259 260 258 14 11 9 9 48 9 10 6 7 41 40 38 40
Slide 19: …resulting in considerable operating leverage
…resulting in considerable operating leverage Adjusted revenue Adjusted operating expenses³ Adjusted profit before tax SEKm SEKm SEKm 51 64 31 22 57 74 1,114 830 644 367 259 280 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 Income in relation to savings capital (bps)¹ Operating expenses in relatio
Slide 20: High quality loan portfolio with loan losses remaining at very low levels
High quality loan portfolio with loan losses remaining at very low levels 3M 2021 savings capital Usage of deposits Lending SEKbn SEKbn SEKbn 1 2 Lending Liquidity portfolio Unsecured Mortgage Margin lending Funds 67 65 22.1 18% 14.7 50% 43 648 10% Deposits 52 39% 72% 33% 32% Brokerage 15 22 28% 18%
Slide 21: Robust capital position
Robust capital position Total capital ratio Leverage ratio % % Capital requirement Additional Tier 1 ratio CET1 ratio Buffer over total capital requirement 3,8% 4,2% 4,8% 4.0% 4.0% 21.8% 21.7% 18.5% 3.7% 3.5% 17.6% 16.9% 2.6% 4.4% 14.7% 18.1% 18.2% 14.1% Mar 2020 Dec 2020 Mar 2021 Mar 2020 Dec 2020
Slide 22: Financial performance vs. financial targets
Financial performance vs. financial targets Target Customer satisfaction Customer growth Average savings capital per customer¹ NPS % SEK (‘000) 39% 34% 412 409 416 426 ~SEK409k per 19% customer 10-15% p.a. 12% customer growth over the cycle 2010-2018 2019 2020 LTM 3M 2018 2019 2020 LTM 3M 2021 2021
Slide 23: Key focus areas
Key focus areas Building the best platform for savings and investments Engaged customers #1 NPS, double digit customer growth and high customer retention Upward trend on eNPS Engaged Profitable Strong revenue growth Attract and retain top talent employees growth Stable cost level Compl
Slide 24: Thank you!
Thank you!
Slide 25: Appendix
Appendix Ae Nordnet
Slide 26: Summary P&L
Summary P&L SEKm Q1 2021 Q4 2020 QoQ % Q1 2020 YoY % LTM 3M 2021 LTM 3M 2020 YoY % Adjusted total income 1 114 767 45% 644 73% 3 148 1 815 73% Adjusted operating expenses (280) (287) (2%) (259) 8% (1 085) (1 095) (1%) Net credit losses (4) (7) (42%) (18) (77%) (25) (45) (46%) Adjusted profit before
Slide 27: Items affecting comparability
Items affecting comparability Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY SEKm 2021 2020 2020 2020 2020 2019 2019 2019 2019 2020 2019 2018 2017 Non-recurring items – Expenses Delisting from Nasdaq (45) Acquisition of Netfonds (19) (2) (8) (6) - (35) (16) Deduction right VAT (9) (11) (30) (20) (30) IPO re
Slide 28: 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 ~648bn SEK ~43bn SEK ~22bn ~72% ~18% ~10% ~50% ~32% ~18% Margin Mortgage Shares Funds Deposits Unsecured lending4 lending Net commission Net
Slide 29: Rigorous focus on cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage Key drivers of operating leverage Increase in tech spend to ensure scalability going forward Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operati
Slide 30: Profitable customer growth with significant long-term potential
Profitable customer growth with significant long-term potential Attractive customer lifetime value driven by low …with strong further growth outlook as younger acquisition cost and churn... customers accumulate and inherit wealth Nordnet’s customer acquisition cost vs. average lifetime customer valu
Slide 31: Share of trading per application
Share of trading per application Distribution of trades per application 100% 8% 9% 8% 9% 9% 9% 9% 9% 8% 7% 7% 7% 6% 90% 15% 21% 20% 21% 19% 80% 25% 28% 31% 29% 28% 26% Share of total trades 31% 29% 7% 70% 9% 11% 10% 15% 60% 22% 31% 50% 29% 22% 27% 19% 26% 33% 40% 37% 37% 35% 40% 38% 15% 30% 15% 0% 1