Slide 1: Mandatum Group Q3 2024 Investor presentation
Mandatum Group Q3 2024 Investor presentation
Slide 2: July–September 2024
July–September 2024 Fee result up by 42% to EUR 18.1 million − Client AuM increased 18% y/y to EUR 13.3 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 EUR 114
Slide 3: Mandatum's financial targets (unchanged)
Mandatum’s financial targets (unchanged) TARGET 1–9/2024 (1–9/2023) Annual net flows Net flow EUR 592 (544) million, 5% and annualised (medium-term) 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
Slide 4: Financial performance
Financial performance
Slide 5: Overview of the 7–9/2024 results
Overview of the 7–9/2024 results RESULTS EURm 7–9/2024 7–9/2023 Change, % 1–9/2024 1–9/2023 Change, % 1–12/2023 Fee result 18.1 12.7 42% 48.0 39.2 23% 52.6 Net finance result 26.9 67.2 -60% 111.9 123.7 -10% 148.6 Result related to risk policies 9.1 7.4 24% 23.2 9.9 n.m. 17.9 Other result -9.0 -3.3 n
Slide 6: Strong growth in fee result
Strong growth in fee result PROFIT BEFORE TAXES (EURm) FEE RESULT (EURm) NET FINANCE RESULT (EURm) 164.1 167.8 18.1 67.2 12.7 83.9 26.9 45.2 1-9/2023 1-9/2024 7-9/2023 7-9/2024 7-9/2023 7-9/2024 7-9/2023 7-9/2024 PBT down 46% to EUR 45 million Fee result up 42% driven by improved Investment re
Slide 7: Result by segments
Result by segments RESULTS 7–9/2024 . EURm Institutional Corporate Retail With-profit Other Total 7–9/2023 Fee result 6 6 6 - - 18 13 Insurance service result 6 3 - - 8 7 Fee result from investment and asset management services 6 1 3 - - 10 6 Net finance result - - - 18 9 27 67 Investment return - -
Slide 8: Quarterly results since Q1/22
Quarterly results since Q1/22 100 84 80 76 63 60 56 48 46 47 45 40 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 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 Fee result 10 8 19 6
Slide 9: Capital-light segments
Capital-light segments
Slide 10: Seasonally lower Q3 net flow EUR 114m, up 19% y/y
Seasonally lower Q3 net flow EUR 114m, up 19% y/y NET FLOW (EURm) CLIENT ASSETS UNDER MANAGEMENT (EURbn) Net flow Annualised Net flow % of BoP AuM Institutional & WM Corporate Retail 350 18% 13.0 13.3 12.5 291 16% 11.9 300 11.2 11.2 10.8 3.5 251 246 14% 10.3 3.5 250 232 3.4 12% 3.2 210 3.1 3.1 199 3
Slide 11: Client AuM up 18% y/y, net flow positive ytd in all segments
Client AuM up 18% y/y, net flow positive ytd in all segments CLIENT ASSETS UNDER MANAGEMENT (EURbn) NET FLOW DEVELOPMENT (EURm) Institutional & WM Corporate Retail Growth 13.3 1-9/2024 9 0.4% y/y Retail Retail 11.2 1-9/2023 -34 -1.5% 3.5 14% 3.1 1-9/2024 70 4.1% Corporate 2.5 18% Corporate 2.1 1-9/2
Slide 12: Solid quarter for the Institutional and wealth management
Solid quarter for the Institutional and wealth management AUM BY CLIENT SEGMENT (EURm) AUM BY PRODUCT (EURm) COMMENTS Institution Finland Institution Int. Credit Equity UHNW Private WM Alternative Allocation products 21% AuM growth in the I&WM External products business area due to positive net Gr
Slide 13: Fee income up 13% y/y – Cost/income ratio down
Fee income up 13% y/y – Cost/income ratio down FEE INCOME (EURm)1 FEE INCOME MARGIN (%)2 FEE MARGIN UNCHANGED 113.7 1.2% 1.2% Fee income increased by 13% due to 100.9 EUR 1.6 billion higher average AuM Fee margin unchanged at 1.2% 1-9/2023 1-9/2024 30 Sep 2023 30 Sep 2024 CLIENT AUM COSTS (EURm)
Slide 14: With-profit segment
With-profit segment
Slide 15: With-profit segment: Net finance result
With-profit segment: Net finance result INVESTMENT RETURN (EURm) COST OF LIABILITIES I.E. NET FINANCE RESULT (EURm) UNWINDING & DISCOUNT (EURm) Investment 0.5% 2.4% return (%) 1 39 65 98 + = 26 18 -81 7-9/2023 7-9/2024 7-9/2023 7-9/2024 7-9/2023 7-9/2024 Quarterly investment return 2.4% Decrease
Slide 16: 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 decreased discount curve increased with- profit liabilities by EUR 16 million in 1-9/2024 and EUR 62 million in 7-9/2024 Actual Forecast Unwinding rate 3.4% for year 2024 and expect
Slide 17: With-profit investment portfolio by asset class
With-profit investment portfolio by asset class ORIGINAL PORTFOLIO, EUR 3,541 m SEGREGATED PORTFOLIO, EUR 682 m Original Portfolio Fixed income and money market weight increased due to EUR 250 3% 2% million cash due to repayment of old 6% Tier 2 loan 8% Underlying asset allocation largely 3% unc
Slide 18: 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 149% 98% 82% 24% 0% 74% Interest rate risk related to first eight ratio years of lia
Slide 19: Solvency and capital generation
Solvency and capital generation
Slide 20: Steady development of Solvency II ratio continued
Steady development of Solvency II ratio continued QUARTERLY SOLVENCY POSITION (EURm) SOLVENCY II RATIO SENSITIVITY Own funds SCR Solvency II ratio 237% Base 249% 3,000 233% 237% 250% 221% 221% 224% Listed & private 273% equities (20%) 2,500 2,323 2,310 2,256 200% 2,140 2,200 2,198 Interest 231% 2,00
Slide 21: Successful Tier 2 issue contributed to own funds
Successful Tier 2 issue contributed to own funds BREAKDOWN OF OWN FUNDS (EURm) Solvency II ratio COMMENTS 224% 299 0 2,323 84 2,198 Own funds increased by EUR 67 million during Q3, of 522 -124 -150 which EUR 52 million explained by issued Tier 2 loan 1,568 and personnel offering Market risk, and
Slide 22: Organic capital generation exceeding net profit growth
Organic capital generation exceeding net profit growth COMPONENTS OF ORGANIC CAPITAL GENERATION, SEGMENTAL CONTRIBUTION, 1–9/2024 (EURm) 1–9/2024 (EURm) 49 172 12 172 12 149 At 200% 123 Solvency II ratio Own funds generations SCR reduction Capital release Organic capital With-profit Capital light Or
Slide 23: Key drivers of capital generation (1-9/2024)
Key drivers of capital generation (1-9/2024) KEY DRIVERS Organic capital generation 18% Own funds: Stable growth of fee 221% -8% 224% result and strong net finance result -8% SCR: Predictable, continuous run-off of with-profit liabilities. However, this is partly offset by increase of capital-li
Slide 24: Outlook
Outlook
Slide 25: Outlook for year 2024 (unchanged)
Outlook for year 2024 (unchanged) The fee result is expected to increase from year 2023 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 and 2023, the fe
Slide 26: Appendix
Appendix Supporting materials
Slide 27: Result by segments
Result by segments RESULTS 1–9/2024 . EURm Institutional Corporate Retail With-profit Other Total 1–9/2023 Fee result 18 17 14 - - 48 39 Insurance service result 15 8 - - 23 23 Fee result from investment and asset management services 18 1 6 - - 25 17 Net finance result - - - 90 22 112 124 Investment
Slide 28: Development of policy savings (original portfolio)
Development of policy savings1 (original portfolio) WITH-PROFIT POLICY SAVINGS, 2019–Q3/2024 (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 115 million a
Slide 29: CSM development – 1–9/2024
CSM development – 1–9/2024 CSM 1 DEVELOPMENT, 1–9/2024 (EURm) CSM 1 SENSITIVITY, 9/2024 (EURm) 49 Discount rate (100)bps -16 -3 473 8 1 - 34 452 Discount rate +100bps 19 Equity markets (20)% -56 Equity markets +20% 56 12/2023 New business CSM Accreted interest Experience variance Assumption changes
Slide 30: 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