Ipas Indexo · OMXRSE:IDX1R
Ipas Indexo — H1 2024 Earnings Presentation
26 slides from Ipas Indexo's earnings presentation, Aug 7, 2024
Slide 1: Webinar on H1 2024 consolidated financial results
IND=EXO- Webinar on H1 2024 consolidated financial results (A OX Valdis Siksnis Ivita Asare Henrik Karmo AS INDEXO Banka AS INDEXO Banka IPAS INDEXO Chairman of the Board Chief Financial Officer Chairman of the Board . IND=EXO August 7, 2024
Slide 2: Another great quarter for INDEXO Group
Another great quarter for INDEXO Group making INDEXO one of the fastest growing pension fund manager in the Baltic countries Almost 6 000 shareholders* allowing everyone Pension business delivering solid financial results and INDEXO 2r4and 3:4 pension pillar equity plans are INDEXO Bank received a l
Slide 3: Key H1 2024 Highlights
Key H1 2024 Highlights 536.6K Pension Commission Business profit income excluding bank costs 2.02M 154.6K 1.15B 134.7K Net Profit Total Customers Total AUM 21.4K 7.5K New customers New customers last 12 months last 6 months 1 IND=EXO __ datasource: quarterly reports, internal data
Slide 4: INDEXO keeps growing quickly
INDEXO keeps growing quickly Our Assets Under Management (AUM) have grown by more than 50% and exceeded Ibn EUR, as well our revenues keep growing quickly ose AUM AUM End of June 2023 End of June 2024 1 IND=EXO __ datasource: quarterly reports, internal data Commission income Jan-Jun 2023 Commission
Slide 5: Key metrics in years have grown significantly
Key metrics in 5 years have grown significantly Period Clients AUM Revenue Net Profit H1 2019 22,848 125.3M 232,035 -302.74K H1 2024 134,734 1150.3M 2,015,460 154.63K 1 IND=EXO __ datasource: quarterly reports internal data
Slide 6: Pension business
Pension business has been Quarterly net profit/ (loss) of pension business, thousand EUR profitable for the last four quarters 181 14 58 l 4 I | 121 -158 -230 QI 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 1 IND=EXO __ datasource: quarterly reports internal data Bos) 275 =Net profit/ (loss) ~ Net profit/ (
Slide 7: Impressive growth of AUM and Clients
Impressive growth of AUM and Clients Total AUM, millions EUR Total Clients, thousands 127 135 1150 n3 7 100 68 46g 585 no 279 33 179 | a =O 2019 2020 2021 2022 2023 1H 2023 1H 2024 2019 2020 2021 2022 2023 =1H2023 1H 2024 13% 12% 1% Total market shares 9% oe 7% 7% a 6% 7% 4% 4% 4% =AUM total, mEUR 3
Slide 8: INDEXO is the most popular choice switching 2nd pillar manager
INDEXO is the most popular choice switching 2" pillar manager Change in number of 2"4 Pillar clients during Jan-Jun 2024 INDEXO 6290 Competitor 1 | 4249 Competitor 2 Fe 3794 Competitor 3 I 520 Competitor 4 -595 | | Competitor 5 -4008 | Competitor 6 6652 PY -10000 -5 000 ie) 5000 10 000 4 IND=EXO _ b
Slide 9: INDEXO is the 3rd largest pension manager in Latvia
INDEXO is the 3'¢ largest pension manager in Latvia (as of 30 June, 2024) Manager @ Swedbank @SEB @ INDEXO @Citadele @Luminor @ Other 5.5% 8.91% Manager e Swedbank @SEB e@INDEXO ecitadele 14.09% e@Luminor e@ Other 10.82% 40.09% 20.58% 1 ry EN DE XO bata source: manapensija.ivas of 30 June 2024, Grap
Slide 10: Our business growth in pillar can be attributed to growing monthly contributions
Our business growth in 29 pillar can be attributed to growing monthly contributions and new customers joining INDEXO 1 IND=EXO Data source: manapensija.lv data, internal data 2"4 Pillar pension AUM growth drivers Q2 2023 - Q2 2024 Millions EUR 739 Q2 2023 187 | Monthly Inflows from contributions new
Slide 11: Our business growth in 2nd pillar can be attributed to growing monthly contributions
Our business growth in nd pj 2 p I la rean be . 2°d Pillar pension AUM growth drivers Q2 2023 - Q2 2024 attributed to growing _ mitlionseur monthly contributions and new customers joining INDEXO —— | 105 (79) From: 7.4 million euro in June 2023 To: 9.5 million euro in June 2024 one @22023 Monthly _—
Slide 12: Our flagship 100% equity plan Jauda has been outperforming the market
Our flagship 100% equity plan Jauda has been outperforming the market since its inception 70% 65,99% 60% 51,98% 50% 40% The graph shows the cumulative 32,43% 30,56% 33.18% returns of INDEXO Jauda 16-50 30% 94.41% pension plan on 28.06.2024 23,34% 90,08% : relative to the average returns of 20% 15,46
Slide 13: Our customer loyalty is strong, but the retention rate is slightly affected
Our customer loyalty is strong, but the retention rate is slightly affected by increased churn This is a result of higher activity by our Total market clients who have changed their pension plan competitors as the churn figures have 1“ MELE IaL, ewe increased for the whole market 12,2212,2412,37 1,
Slide 14: INDEXO has the highest AUM per client
INDEXO has the highest AUM per client and the gap between us and competitors is increasing AUM per client, EUR Manager Yearly Change of % change AUM per client, 9000 EUR 8.000 7000 Competitor 2 649 11.1% 6000 Competitor 3 1319 30.7% 5000 Competitor 4 918 28.7% eteuy Competitor 5 1307 24.9% 3000 1 1|
Slide 15: Our 3rd pillar pension is also growing
Our 3" pillar pension is also growing 3'4 pillar pension assets, millions EUR at ne" 25,8 we 21,1 15,1 ] i] Q2 2023 Q32023 Q42023 Q12024 Q22024 IND=XO" Data source: manapensija.lv data, internal data 3'4 pillar pension clients, thousands 33% 3,8 | | Q2 2023 Q32023 Q42023 Q12024 Q22024 Clients with r
Slide 16: INDEXO keeps investing in future growth by acquiring new clients
INDEXO keeps investing in future growth by acquiring new clients IND=XO" Data source: internal data * Interest expense for Commitment letters Jan-Jun 2024 Jan-Jun 2023 INDEXO Pension business results, EUR Unaudited, Unaudited, EUR EUR Commission income 2015 460 1386024 Interest income/(expense) (210
Slide 17: INDEXO Bank is ready to start in August!
INDEXO Bank is ready to start in August! r “
Slide 18: Perfect time to enter the market
Perfect time to enter the market Addressable oligopolistic market of 622 million banking profits in 2023 is ripe for disruption Huge underserved lending market opportunity, estimated to be 5+ bn Latvia lacks successful local banks like Coop, LHV who have been building market share quickly in Estonia
Slide 19: INDEXO well positioned to disrupt the market
INDEXO well positioned to disrupt the market S Large, fast growing high- Well recognized and Building best-in-class IT quality customer base positively perceived brand infrastructure + INDEXO has more than 134 + According toa market survey* + Acloud native IT infrastructure is thousand high-quality
Slide 20: We are launching the bank with daily banking products
Weare launching the bank with daily banking products INDEXO app will raise the standards for mobile banking in Latvia Simple for everyday user, customizable for power users IND=XO" 20
Slide 21: INDEXO Bank is building its muscles to get ready for launch
INDEXO Bank is building its "muscles" to get ready for the bank's launch = =y INDEXO Data source: internal data Jan-Jun 2024 INDEXO Bank Profit and Loss Statement, EUR Unaudited, EUR Interest income calculated using the effective interest rate 110611 Interest expense (79 964) Commission and fee inco
Slide 22: INDEXO Bank continues to make significant IT investments
INDEXO Bank continues to make significant IT investments = =y INDEXO Data source: internal data Jun 2024 INDEXO Bank Balance sheet, EUR Unaudited, EUR ASSETS Other demand deposits at central banks 7049 499 Due on demand from credit institutions 20 437 Property, plant and equipment and right-of-use o
Slide 23: The INDEXO Bank has built adequate capital base
The INDEXO Bank has built adequate capital base to support the initial business development Capital ratios and minimum requirements as of June 2024 The goal of the Bank's 93.70% 93.70% capital management is to ensure continuity of the Bank's business and ability to generate return for its shareholde
Slide 24: Experience the historical event - INDEXO Bank launch
Experience the historical event -— INDEXO Bank launch
Slide 25: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income Commission and fee income Interest income calculated using the effective interest rate Administrative expenses Interest expense Other operating expenses Credit losses Jan-Jun 2024 Jan-Jun 2023 Unaudited, EUR Unaudited, EUR 2015 469 1386025 134 632 9052
Slide 26: Consolidated Statements of Financial Position
Jun 2024 Jun 2023 Consolidated EET Unaudited, EURUnaudited, EUR Cash and cash equivalents 8189 291 4959 431 Statements of Receivables 336 982 254132 e e ere Prepayments. 277740 126 645 Fina ncial Position Contract acquisition costs 1464585 1203 972 Other assets 211197 5001 Loans to subsidiaries and