Slide 1: LHV Group Q4 2017 results
LHV Group Q4 2017 results 6 February 2018
Slide 2: Strong trends take us to the new year
Strong trends take us to the new year Customer convenience Pension funds’ Estonian investments * 5% from clients through video * Luminor, Coop Pank, Tartu city recognition * New Estonia-oriented actively managed pension fund will be * Mobile bank logins 1.4 millions established * LHV Connect has 100
Slide 3: Rapid volume growth with record-breaking customer activity
LHV Group Rapid volume growth with record-breaking customer activity Financial results, EURt Net interest income Net fee and commission income Other income Total revenue Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit Business volumes, EURm Depost
Slide 4: Group results — comparison with financial plan
LHV Group — comparision with financial plan Net profit compared to financial plan +0.4 EURm Financial results, EURt 13months _Dec-17 YTD17 YTDi6. -FPYTD AYTDFP : ; Total revenue, incl. vw 5,397 58,523 50,558 59,666 “1,143 . Consolidated net pron eee : Net interest income 3,460 95,502 «20,976 87,879
Slide 5: LHV Banking
LHV Banking Quarter with very strong growth Deposits 1800 1,55C 1 600 +98% = 1200 = 900 784 = r | = “pig ™ 300 0 4-15 at-t6 02-16 a3-t6 4-16 Qri7 Q2-17 Q317 Qai7 Demand deposits "Term deposits EURm Loans (net) 719 +35% = 600 532 —;_ ff | wo —~ =« op oe @ ' a = og & 2 8 38 Q4-15 Qt-16 2-16 03-16 Q4-1
Slide 6: LHV Banking
LHV Banking Net profit 3.9 EURm Financial results, EURt Net interest income Net fee and commission income Other income Total revenue Total operating expenses Earnings before impairment Impairment losses on loans Net profit Business volumes, EURm Depostis from customers Loans (net) Customers, thous.
Slide 7: LHV Banking — comparison with financial plan
LHV Banking — comparision with financial plan Net profit 4% below financial plan Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Net profit Business volumes, EURm Depostis fr
Slide 8: LHV Asset Management
LHV Asset Management 170 EURm of investment decisions related to Estonia EURm Assets under management and customers 1200 NUM +13% 1108 974 ned — O15 1-16 02-16 3-16 1-16 Qti7 247 3-17 Qt? Pillar Il pensionfunds mmm Other funds —— Active customers of Pillar II pensionfunds 50/50 Pillar Il pensionifun
Slide 9: LHV Asset Management
LHV Asset Management Volume of funds reached to 1.1 billion euros Financial results, EURt Total revenue Selling expenses Other operating expenses Total operating expenses EBIT Net financial income Income tax Net profit Business volumes, EURm Pillar Il pensionfunds Pillar Ill pensionfunds Eurofunds A
Slide 10: LHV Asset Management — comparison with financial plan
LHV Asset Management — comparision with financial plan Annual net profit 5.8 EJRm Financial results, EURt 13 months Total revenue \ ~~ Total expenses Ann Earnings before taxes ANY Income tax aAsorseese Net profit yo Business volumes 13 months Assets under management, EURm .— Active custorners of Pll
Slide 11: Stock information
LHV Group Stock information 175% 160% 145% 130% 115% 100% 85% 11 LHV stock price and turnover EURt mms LHV chaily turnover (EUR - AV OR Ae i, May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Cec Dynamics of LHV stock price and comparison indexes = LHV stock (LHV1T) —— OMX
Slide 12: 194 EURm 170 EURm
194 EURm 17.6% Loan porfolio growth ROE 170 EURm 21,000 Investment decisions to Estonia Bank customer increase 15
Slide 13: Annexes
Annexes
Slide 14: Quarter influenced by payment intermediaries
LHV Group Quarter influenced by payment intermediaries % LCR 300 200 121 100 0 at af a2 8 a a a a8 a7 2016 2017 % CTI capital adequacy 20 16 14.0 , —_—1_) ——+ |] 5 12 12.3 8 4 a4 at a2 08) Gt ot 2 8 OH7 2016 2017 ——=LHV internal Tier 1 ratio limit 14 Loan-deposit ratio 100 80 60 aoa ° 20 oO a4 91 G2
Slide 15: Credit quality influenced by few customers
LHV Group Credit quality influenced by few customers R Corporate loans by ratings 30 | | | | | | 1 | | 13 4-6 7 8 9 8 a 3 ° il ° in 101213 oats sasar Perey EuRm Mokilizingas loans overdue porfolio 3 | | 08 s i i E Bue = 3 i 61 o TIiTirrire 3 a4 at a2 a O OF a ou uF 216 2017 loan impairments. = over
Slide 16: AS LHV Group contact details
AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE