Ipas Indexo · OMXRSE:IDX1R
Ipas Indexo — Indexo — FY2023 Earnings Presentation
23 slides from Ipas Indexo's earnings presentation, Feb 27, 2024
Slide 1: Webinar on the audited consolidated financial results of 2023
Webinar on the audited consolidated financial results of 2023 Valdis Siksnis Henrik Karmo Chairman of the Board Board Member February 27, 2024
Slide 2: The fastest growing pension fund manager in the Baltic states
The fastest growing 915+ millions euro in AUM INDEXO 2nd un 3rd pension pension fund manager in 127 000+ clients* pillar equity plans are the Baltic states among the best- performing in the Latvian market *data on December 31, 2023 2
Slide 3: The number one choice switching pension manager in Latvia
The number one choice Almost 6 000 INDEXO is ready to launch switching pension shareholders, allowing the Bank and disrupt the manager in Latvia everyone to be a part of Latvian banking market* INDEXO growth *Approval from the European Central Bank is required for obtaining a commercial bank license
Slide 4: Key 2023 Highlights
Key 2023 Highlights 917.2 million EUR Total value of AUM 127.2 k Total number of customers 3.1 million EUR Commission income generated 27.5 k Number of new customers over 12 months 4
Slide 5: Our Assets Under Management have grown by more than 50%
Our Assets Under Management have grown by more than 50% 917M 585M Assets Under Management Assets Under Management End of 2022 End of 2023 5
Slide 6: Our revenues also keep growing quickly
Our revenues also keep growing quickly 3.1M 2.3M Commission income Commission income Jan - Dec 2022 Jan – Dec 2023 6
Slide 7: Key metrics have grown by more than 10x in 5 years
Key metrics have grown by more than 10x in 5 years Period Clients AUM Revenue 2018 19,121 69.9M 305,552 2023 127,159 917.2M 3,123,426 6.7X 13.1X 10.2X 7
Slide 8: Impressive growth of AUM and Clients
Impressive growth of AUM and Clients 917 585 468 279 Total AUM, millions EUR 179 28 70 2017 2018 2019 2020 2021 2022 2023 127 100 33 49 68 Total Clients, thousands 19 4 2017 2018 2019 2020 2021 2022 2023 12% 9% 7% 6% 7% 5% 1% 0% 2% 1% 4% 3% 4% 4% Total Market shares 2017 2018 2019 2020 2021 2022 202
Slide 9: INDEXO is the most popular choice switching 2nd pillar manager
INDEXO is the most popular choice switching 2nd pillar manager Change in number of 2nd Pillar clients during 2023 Change in 2nd Pillar AUM during 2023 INDEXO 22.5K Competitor 4 538M Competitor 1 5.4K INDEXO 321M Competitor 2 0.9K Competitor 6 232M Competitor 3 0.6K Competitor 7 109M Competitor 4 0.4
Slide 10: During 2023 the churn rate in the pension market has increased
During the 2023 churn rate in the pension market has 93.0% 94.9% increased INDEXO customer loyalty End of December 2023 End of December 2022 remains at high level customer retention rate customer retention rate 10
Slide 11: INDEXO is the 3rd largest pension manager in Latvia
rd INDEXO is the 3 largest pension manager in Latvia (as of 31 December, 2023) Data source: manapensija.lv as of 31 December 2023 11
Slide 12: Our business growth in 2nd pillar Q4 2022 – Q4 2023
Our business growth in Q4 2022 – Q4 2023 Millions EUR, based on management estimates nd 2 pillar can be attributed to growing monthly contributions and new customers joining INDEXO Q4 2022 Monthly Inflows from Churn Market Q4 2023 contributions new clients returns 12
Slide 13: Our business growth in 2nd pillar Q4 2022 – Q4 2023
Our business growth in Q4 2022 – Q4 2023 Millions EUR, based on management estimates nd 2 pillar can be attributed to growing monthly contributions and new customers joining INDEXO Q4 2022 Monthly Inflows from Churn Market Q4 2023 contributions new clients returns From: 6.5 million euro in December
Slide 14: Our 3rd pillar pension is also growing
rd Our 3 pillar pension is also growing Clients with regular 3rd pillar pension assets, 3rd pillar pension clients, contributions millions EUR thousands 13.8 21.1 12.5 11.3 17.0 10.1 15.1 8.8 12.4 10.2 63.9% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 vs 61.7% on
Slide 15: Became profitable in second half of 2023
Became profitable in second half of 2023* Quarterly net profit/ (loss) of pension business in 2023, thousand EUR 114 58 ( 1) ( 158) ( 230) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2023 * *Pension business Q4 profit excluding SPO costs 15
Slide 16: INDEXO keeps investing in future growth by acquiring new clients
Jan-Dec INDEXO Pension business results Jan-Dec 2023 2022 Commission income EUR 3 123 426 2 277 620 Interest income/(expense) EUR 25 012 (652) INDEXO keeps Administrative and other expenses for pension management EUR (1 272 371) (610 648) investing in future Operating income before client acquisitio
Slide 17: We have invested 4.45 million EUR in Bank development
We have invested 4.45* million EUR in Bank development Successfully finished VISA card certification We have implemented a new CRM system for our process, payment card systems and card pension fund designs We are building the core team for the bank. Already over 1000 working screens have been Curren
Slide 18: Over 1000 working screens awaits you
Over 1000 working screens awaits you 18
Slide 19: Consolidated Statement of Comprehensive Income
Jan – Dec 2023 Jan – Dec 2022 EUR EUR Commission and fee income 3 123 426 2 277 620 Interest income calculated using the effective interest rate 51 466 2 495 Administrative expenses (5 994 955) (3 514 964) Consolidated Interest expense Other operating expenses (4 713) (63 632) (3 147) (32 738) State
Slide 20: Consolidated Statements of Financial Position
Dec 2023 Dec 2022 EUR EUR ASSETS Cash and cash equivalents 2 707 396 7 231 123 Receivables 321 489 220 190 Prepayments 548 006 24 279 Contract acquisition costs 1 389 048 990 417 Other assets 81 990 6 937 Loans to subsidiaries and associates 53 944 - Intangible assets 1 965 168 177 176 Property, pla
Slide 21: Consolidated Statement of Changes in Equity
Share Share Share Retained Total capital options premium losses EUR EUR EUR EUR EUR 31.12.2021 3 016 987 5 436 77 175 (1 445 335) 1 654 263 Increase in Share option reserves - 171 524 - - 171 524 Consolidated Increase in Share capital after public listing 535 000 - 6 955 000 - 7 490 000 Increase in
Slide 22: Consolidated Statement of Cash Flows
Jan – Dec 2023 Jan – Dec 2022 EUR EUR Cash flow from operating activities Loss before corporate income tax (2 891 905) (1 270 734) Depreciation of PPE and amortisation of right-of-use assets 112 016 69 760 Amortisation of contract acquisition costs 233 824 139 277 Amortization of Share option reserv
Slide 23: The number one choice switching pension manager in Latvia
The number one choice 915+ millions euro in AUM INDEXO 2nd un 3rd pension switching pension 127 000+ clients* pillar equity plans are manager in Latvia among the best-performing in the Latvian market The fastest growing Almost 6 000 INDEXO is ready to launch pension fund manager in shareholders, all