Slide 1: 9M 2024 Results Earnings Call
9M 2024 Results Earnings Call 14.11.2024
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 15.1% to EUR 193.9m y-o-y • EBIT increased by 42.2% to EUR 47.2m y-o-y as planned, thanks to credit loss improvements • Multitude Bank acquires a strategic stake in Lea Bank ASA in October 2024 • Antti Kumpulainen appointed as CEO of Multitude Group, effective Ja
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, Respect, for overlooked making the
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: Aiming for stable profitable growth, ESG values, 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 business units and adding new businesses FUTURE PROFIT UPSIDE 2.5x Net profit growth*
Slide 8: Multitude group highlights 9M 2024
Multitude group highlights 9M 2024 – Increasing revenue and strong EBIT growth Highlights 9M 2024 Focus going forward • Both revenue and EBIT growing strongly • Focus on 3 growth initiatives: Organic, Partnerships and M&A • All 3 business units growing • Enhance risk management and AI investments to
Slide 9: Consumer Banking highlights 9M 2024
Consumer Banking highlights 9M 2024 – Strong performance continues Highlights 9M 2024 Focus going forward Targets 2024 • Improved marketing bidding process in • Continue integrating SweepBank banking Our target for 2024 is to achieve 5% higher further countries products to Ferratum offering in other
Slide 10: SME Banking highlights 9M 2024
SME Banking highlights 9M 2024 – Strong growth and credit risk provisions decreasing according to plan Highlights 9M 2024 Focus going forward Targets 2024 • Focus on retention of customers: Multi- • Integrate SweepBank account and credit card Our original target for 2024 was to achieve EUR product o
Slide 11: Wholesale Banking highlights 9M 2024
Wholesale Banking highlights 9M 2024 – Strong profitable growth with carefully selected institutional clients Highlights 9M 2024 Focus going forward Targets 2024 • Increased expertise and reduced deal • Emphasizing smart risk-taking and On our way to achieving our 2024 target origination time: core
Slide 12: ESG - Key highlights
ESG - Key highlights 2025 Goals 9M 2024 Progress highlights E • Improvement in impact materiality assessment across the downstream value chain (i.e., financing activities), upstream value chain and all our own operations Understand and reduce • Improvement in risk materiality assessments the Group e
Slide 13: Relocation of registered seat to Switzerland
Multitude Group's relocation of registered seat to Switzerland Multitude SE from Multitude p.l.c. from Finland Multitude p.l.c. to Multitude AG to Malta - Temporary EGM 1 / EGM 2 EGM 3 EGM 4 EGM 5 21 Mar 30 June 21 Aug 5 Sep 23 Oct Dec As of 2024 2024 2024 2024 2024 2024 31 Dec 2024 Transfer Convers
Slide 14: Multitude Bank acquired a strategic stake in Lea Bank ASA
Multitude Bank acquired a strategic stake in Lea Bank ASA - Great strategic fit with complementary offering and attractive financial return Transaction breakdown Strategic investment • Lea Bank represents an ideal strategic fit with its complementary product offerings Stake 1 • This transaction is e
Slide 15: Lea Bank is a growing and profitable digital consumer financing bank from Norway
Lea Bank is a growing and profitable digital consumer financing bank from Norway Lea Bank in brief Key metrics • Interest income 2023: • Fully digital bank founded in 2016 • Offering focusing on unsecured NOK 712.3m (EUR~ 60.2m) consumer loans and deposits • Net profit 2023: NOK 106.3 (~ EUR 9m) • H
Slide 16: New CEO appointment 1st of January 2025 – Antti Kumpulainen
New CEO appointment 1st of January 2025 – Antti Kumpulainen Why this change? Antti Kumpulainen The founder seeks to reduce time spent on • Nine successful years in Multitude from which first years daily operations, focusing fully on high-impact as country manager, followed by commercial leader strat
Slide 17: 9M 2024 Results
9M 2024 RESULTS IFRS preliminary unaudited financial results for the 9 months ended 30 September 2024 17
Slide 18: Financial overview: Strong performance continues also in Q3
Financial overview: Strong performance continues also in Q3 in EURm 9M 2024 9M 2023* %/pp change Strong 9M business Interest income 193.9 168.5 15.1 performance in challenging environment: Interest expense (30.1) (14.2) 112.1 • Revenue grew by 15.1% to EUR 193.9m Net interest income 163.8 154.3 6.2
Slide 19: Credit loss development: Actions taken result in significantly lower credit losses
Credit loss development: Actions taken result in significantly lower credit losses Group credit loss development Consumer credit loss development SME credit loss development 28.3 24.2 23.8 3.9 4.0 19.7 21.5 18.3 20.1 19.7 3.1 20.9 21.3 22.2 20.2 2.0 1.6 0.8 EURm EURm Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 EURm
Slide 20: Balance sheet: Assets in line with business growth and performance
Balance sheet: Assets in line with business growth and performance in EURm Sep 2024 Dec 2023 % change Asset movements: Cash and cash equivalents 267.1 283.7 -5.9 • Loan portfolio and investments Derivative financial assets 0.1 0.3 -68.3 increased from EUR 638m in December 2023 to EUR 726m Loans to c
Slide 21: Balance sheet: Liabilities and shareholders' equity
Balance sheet: Liabilities and shareholders’ equity in EURm Sep 2024 Dec 2023 % change Movements in liabilities and Equity shareholders’ equity: Share capital 40.1 40.1 - • Equity of the group increased to Treasury shares (0.6) (0.1) 526.1 EUR 187.7m Retained earnings 92.0 87.3 5.4 • ND/E 3.27 Unres
Slide 22: Segment view – business unit performance
Segment view – business unit performance Consumer Banking SME Banking Wholesale Banking Group in EURm 9M 2024 9M 2023 % change 9M 2024 9M 2023 % change 9M 2024 9M 2023 % change 9M 2024 9M 2023 % change Interest income 160.6 148.2 8.3 24.7 17.1 44.6 8.7 3.2 169.9 193.9 168.5 15.1 Interest income shar
Slide 23: Strong asset quality - impairment losses down to 2.8% on quarterly basis
Strong asset quality - impairment losses down to 2.8% on quarterly basis Impairment losses / NAR Balanced growth strategy drives asset quality improvements: 12.0% 2019 2020 2021 2022 2023 2024 • Long-term trend: Continuous improvement in impairment 9.7% 10.0% losses over net accounts receivable 2.2
Slide 24: Solid cash balance
Solid cash balance Cash to Deposits in % Cash in EURm 500 100% 90.6% 450 90% 86.2% 82.9% 400 382 73.5% 80% 70.1% 66.9% 70.1% 350 69.9% 312 66.8% 63.5% 70% 75.6% 65.1% 63.0% 299 302 64.2% 63.1% 284 300 62.3% 267 265 50.7% 267 60% 53.0% 238 227 38.7% 225 219 250 50% 213 213 35.1%33.6% 30.6% 197 167 20
Slide 25: Funding structure and cost of debt capital
Funding structure and cost of debt capital Financing mix at 30 September 2024 Financing mix at 30 September 2023 Deposits 1% 7% Multitude p.l.c. 5% 8.90% + 3-month Euribor perpetual (IFRS Equity) 9% 7% Multitude Bank p.l.c. 6% fixed rate Tier 2 bond 2032 (Reg. Capital) EUR 3m EUR 3m EUR 773m EUR 46m
Slide 26: Financial targets: Net Profit expected to increase significantly
Financial targets: Net Profit expected to increase significantly Multitude Group Net Profit Our Guidance framework • EBIT up by 50% each year from EUR 20m in 2021 35.0 to 67.5m in 2024 (expected range 66.5m-68.5m) • EBIT guidance achieved in each period 30.0 30.0 • Net profit introduced as new guida
Slide 27: Key takeaways
Key takeaways • Revenue increased by 15.1% to EUR 193.9m y-o-y • EBIT increased by 42.2% to EUR 47.2m y-o-y as planned, thanks to credit loss improvements • Multitude Bank acquires a strategic stake in Lea Bank ASA in October 2024 • Antti Kumpulainen appointed as CEO of Multitude Group, effective Ja
Slide 28: Q&A
Q&A 28
Slide 29: Thank you !
Thank you ! ir@multitude.com MULTITUDE p.l.c.