Slide 1: H1 2024 Results Earnings Call
H1 2024 Results Earnings Call 22.8.2024
Slide 2: Important notice
Important notice This presentation contains, or may be deemed to All forward-looking statements included herein are based contain, forward-looking statements. These statements on information presently available to Multitude and, relate to future events or future financial performance of accordingly,
Slide 3: Key takeaways
Key takeaways • Revenue increased by 17.0% to EUR 128.8m y-o-y • All 3 business units are delivering at least double-digit revenue growth y-o-y • EBIT increased by 34.5% to EUR 28.3m y-o-y • On track to our EUR 67.5m EBIT guidance for 2024 3
Slide 4: We have been creating success stories in fintech for the last two decades
We have been creating success stories in fintech for the last two decades Founded in Finland in 2005 “Since foundation, we have focused on helping customers who are overlooked EU wide banking licence by traditional banks, with amazing and fully digital customer experience.” Listed on the Frankfurt S
Slide 5: Our vision is to build the most valuable financial platform for overlooked customers
Our vision is to build the most valuable financial platform for overlooked customers VISION MISSION OUR VALUES Building the most Democratise financial Customer centricity, valuable financial services through Entrepreneurial spirit, platform digitalisation, Candour, for overlooked making them fast, c
Slide 6: Multitude's Growth platform
Multitude’s Growth platform Our three independent business units focus on sales and customer experience The growth platform makes sure that the other operations and processes work seamlessly 6
Slide 7: Stable profitable growth, ESG commitment and dividend distribution
We are aiming for stable profitable growth, commitment to ESG values, and dividend distribution to shareholders ESG Emissions reduced and increases in Responsible lending index, NPS and eNPS GROWTH Scaling current tribes and adding new businesses ESG DRIVEN FINTECH PROFIT 2.5x Net profit growth* to
Slide 8: Multitude group highlights H1 2024
Multitude group highlights H1 2024 – Increasing revenue and strong EBIT growth Highlights H1 2024 Focus going forward • Both revenue and EBIT growing strongly • Focus on 3 growth initiatives: Organic, Partnerships and M&A • All 3 business units delivering at least double-digit revenue growth • Enhan
Slide 9: Consumer Banking highlights H1 2024
Consumer Banking highlights H1 2024 – Strong performance continues Highlights H1 2024 Focus going forward Targets 2024 Our target for 2024 is to achieve 5% higher • Outstanding organic revenue growth to EBIT than the previous year. We are currently • Continue integrating SweepBank banking EUR 107.6m
Slide 10: SME banking highlights H1 2024
SME banking highlights H1 2024 – Strong growth with increased credit risk provisions Highlights H1 2024 Focus going forward Targets 2024 Our original target for 2024 was to achieve • Impressive revenue growth of 43.7% to • Integrate SweepBank account and credit EUR 10m EBIT. We currently tolerate lo
Slide 11: Wholesale banking highlights H1 2024
Wholesale banking highlights H1 2024 – Strong profitable growth with carefully selected institutional clients Highlights H1 2024 Focus going forward Targets 2024 • Revenue grew to EUR 5.1m (+182.3% y-o-y) • Emphasizing smart risk-taking and Our target for 2024 is to achieve EUR 6m • EBIT reached EUR
Slide 12: ESG - Key highlights
ESG - Key highlights 2025 Goals H1 2024 Progress highlights E • Improvement in impact materiality assessment across the downstream value chain (i.e., financing activities) Understand and reduce the Group environmental • Improved data quality for estimation of Scope 3 financed emissions according to
Slide 13: H1 2024 Results
H1 2024 RESULTS IFRS preliminary unaudited financial results for the 6 months ended 30 June 2024 13
Slide 14: Financial overview: Strong performance continues
Financial overview: Strong performance continues in EURm H1 2024 H1 2023* %/pp change Strong business performance in challenging environment: Interest income 128.8 110.1 17.0 Interest expense (18.7) (8.8) 111.4 • Revenue grew by 17.0% to EUR 128.8m Net interest income 110.2 101.3 8.8 • Net interest
Slide 15: Balance sheet: Assets in line with business growth and performance
Balance sheet: Assets in line with business growth and performance Asset movements: in EURm Jun 2024 Dec 2023 % change • Cash level actively reduced due Cash and cash equivalents 219.0 283.7 -22.8 to higher deposit interest costs. Cash stood at EUR 219.0m in H1 Derivative financial assets 0.1 0.3 -8
Slide 16: Balance sheet: Liabilities and shareholders' equity
Balance sheet: Liabilities and shareholders‘ equity in EURm Jun 2024 Dec 2023 % change Movements in liabilities and Equity shareholders’ equity: Share capital 40.2 40.1 0.1 • Equity of the group increased Treasury shares (0.1) (0.1) 43.4 slightly to EUR 184.2m Retained earnings 88.0 87.3 0.8 • ND/E
Slide 17: Segment view – business unit performance
Segment view – business unit performance in EURm Consumer banking SME banking Wholesale banking Group H1 2024 H1 2023 % change H1 2024 H1 2023 % change H1 2024 H1 2023 % change H1 2024 H1 2023 % change Interest income 107.6 97.1 10.9 16.0 11.2 43.7 5.1 1.8 182.3 128.8 110.1 17.0 Interest income shar
Slide 18: Strong asset quality - impairment losses remain around 4%
Strong asset quality - impairment losses remain around 4% Impairment losses / NAR Balanced growth strategy drives asset quality improvements: • Long-term trend: Continuous 12.0% 2019 2020 2021 2022 2023 2024 improvement in impairment losses over net accounts receivable 9.7% 10.0% (NAR) 2.2 8.0% 7.2%
Slide 19: Solid cash base
Solid cash base Cash to Deposits in % Cash in EURm 500 100% 450 90% 400 382 80% 350 312 70% 299 302 300 284 60% 267 265 250 238 50% 227 225 219 213 213 167 197 200 171 40% 159 156 152 149 153.3 150 132 135 134 30% 116 117 97 100 20% 50 10% 0 0% • Cash base within long-term target level corridor • Mo
Slide 20: Funding structure and cost of debt capital
Funding structure and cost of debt capital Financing mix at 30 June 24 Financing mix at 30 June 23 Deposits Multitude SE 8.90% + 3-month Euribor perpetual (IFRS Equity) EUR 3m EUR 3m Multitude Bank p.l.c. EUR 26m*) EUR 46m 6% fixed rate Tier 2 bond 2032 (Reg. Capital) EUR 678m EUR 567m EUR 45m Multi
Slide 21: Key takeaways
Key takeaways • Revenue increased by 17.0% to EUR 128.8m y-o-y • All 3 business units are delivering at least double-digit revenue growth y-o-y • EBIT increased by 34.5% to EUR 28.3m y-o-y • On track to our EUR 67.5m EBIT guidance for 2024 21
Slide 22: Q&A
Q&A 22
Slide 23: Thank you !
Thank you ! ir@multitude.com MULTITUDE SE