Slide 1: Mandatum Group Result presentation Q1 2024
Mandatum Group Result presentation Q1 2024 8 May 2024
Slide 2: January–March 2024
January–March 2024 ▪ Profit before tax increased to EUR 46.9 million mainly due to higher net finance result ▪ Fee result up by 9% to EUR 15.2 million ▪ Net flow EUR 246 million corresponding to 8% of assets under management (AuM) annualised ▪ Client AuM increased by EUR 612 million to EUR 12.5 bill
Slide 3: Mandatum's financial targets
Mandatum’s financial targets TARGET 1–3/2024 (10–12/2023) Annual net flows2 Net flow EUR 246 million, 8% of Client AuM (medium-term) (annualised) 5% of AuM Focus on strong and profitable growth of capital-light offering1 Disciplined Fee margin 1.2 (1.2)% Pricing and fee margin Improving Cost/income
Slide 4: Financial performance
Financial performance
Slide 5: Overview of the 1–3/2024 results
Overview of the 1–3/2024 results RESULTS . 1–3 / 2024 1–3 / 2023 Change 10–12 / 2023 Change 1–12 / 2023 EURm Fee result 15.2 14.0 9% 13.4 13% 52.6 Net finance result 29.9 13.4 123% 24.9 20% 148.6 Result related to risk policies 2.2 2.9 -24% 8.0 -72% 17.9 Other result -0.5 1.7 n.m. 0.0 n.m. -8.7 Tota
Slide 6: Profit increase driven by a higher net finance and fee result
Profit increase driven by a higher net finance and fee result PROFIT BEFORE TAXES (EURm) FEE RESULT (EURm) NET FINANCE RESULT (EURm) 46.9 15.2 14.0 29.9 32.0 13.4 1-3/2023 1-3/2024 1-3/2023 1-3/2024 1-3/2023 1-3/2024 ▪ PBT increase driven mainly by higher ▪ Fee result up 9% supported by: ▪ Modest as
Slide 7: Quarterly results since Q1/22
Quarterly results since Q1/22 100 84 80 63 60 56 48 46 47 40 32 20 0 -20 -21 -22 -40 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 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 Fee result 10 8 19 6 14 12 13 13 15 Net finance result -24 47 -51 78 13
Slide 8: Capital-light segments
Capital-light segments
Slide 9: Q1 net flow 8.3% exceeding the 5% target
Q1 net flow 8.3%* exceeding the 5% target NET FLOW (EURm) CLIENT ASSETS UNDER MANAGEMENT (EURbn) Net flow Annualized Net Flow % of BoP AuM Institutional & WM Corporate Retail 350 18% 12.5 291 16% 11.9 300 11.2 11.2 10.8 251 14% 10.3 246 3.4 250 3.2 12% 3.1 3.1 210 3.1 199 3.0 200 10% 2.4 2.3 157 2.2
Slide 10: Client AuM up 5% q/q and net flow positive in all segments
Client AuM up 5% q/q and net flow positive in all segments CLIENT ASSETS UNDER MANAGEMENT (EURbn) NET FLOW DEVELOPMENT (EURm) 2 0.3% 1-3/2024 Growth Retail YTD 12.5 11.9 1-3/2023 -12 -1.5% 3.4 3.2 5.2% 32 Corporate 1-3/2024 5.6% 2.4 5.3% 2.3 1-3/2023 38 7.4% 1-3/2024 212 13.2% I&WM 6.4 6.7 5.1% 1-3/
Slide 11: Institutional & wealth management as a growth driver
Institutional & wealth management as a growth driver AUM BY CUSTOMER SEGMENT AUM BY PRODUCT (EURm) COMMENTS (EURm) Institutions Finland Institutions Int. Credit Equity UHNW Private WM Alternative Allocation products • Positive net flows and good AuM External products growth in all customer segments
Slide 12: Fee income up - fee margin unchanged
Fee income up - fee margin unchanged FEE INCOME (EURm) 1 FEE INCOME MARGIN (%)2 COMMENTS • Fee income increased by 10% due to EUR 1.6 billion higher 36.6 average AuM 33.4 1.2% 1.2% • Net flow and AuM growth mainly from credit products • Fee margin unchanged at 1.2% 1-3/2023 1-3/2024 1-3/2023 1-3/202
Slide 13: Decreasing cost-income ratio
Decreasing cost-income ratio CLIENT AUM COSTS (EURm) OVERALL C/I RATIO (%) 1 COMMENTS ▪ Costs related to client AuM increased by 6.5% ▪ Cost increase mostly due to 22.8 66% 65% FTE growth 21.4 ▪ Fees growing faster than costs → 12 months C/I-ratio down by 1p.p. 1-3/2023 1-3/2024 1-3/2023 1-3/2024 No
Slide 14: With-profit segment
With-profit segment
Slide 15: Net finance result
Net finance result INVESTMENT RETURNS (EURm) COST OF LIABILITIES I.E. NET FINANCE RESULT (EURm) Investment UNWINDING & DISCOUNT (EURm) 1.8% 0.9% return (%) 1 30 71 -6 = 36 13 -58 1-3 / 2023 1-3 / 2024 1-3 / 2023 1-3 / 2024 1-3 / 2023 1-3 / 2024 ▪ Investment return 0.9% (1.8%) ▪ Unwinding cost EUR 19
Slide 16: Higher discount rate for with-profit IFRS liabilities
Higher discount rate for with-profit IFRS liabilities IFRS 17 DISCOUNT CURVE WITH-PROFIT IFRS LIABILITES (EURm) • The discount curve increased in Q1 which decreased with-profit liabilities by EUR 13 million Actual Forecast • Unwinding rate 3.4% for year 2024 and expected full-year unwinding cost EUR
Slide 17: With-profit investment portfolio by asset class
With-profit investment portfolio by asset class ORIGINAL PORTFOLIO, EUR 3,266 m SEGREGATED PORTFOLIO, EUR 679 m Original Portfolio ▪ No major changes in asset allocation 7% 2% ▪ Shift from high-yield to investment 3% grade continued within the fixed 8% income assets 3% ▪ Money market weight increase
Slide 18: IFRS Liability and asset sensitivity (original portfolio)
IFRS Liability and asset sensitivity (original portfolio) Asset and liabilities are managed by alignment of assets and active management actions SENSITIVITY BY MATURITY BUCKETS, RATES DOWN 100BPS COMMENTS Hedging 145% 83% 69% 38% 0% 69% • Interest rate risk related to first eight ratio years liabili
Slide 19: Solvency and capital generation
Solvency and capital generation
Slide 20: Underlying Solvency II ratio unchanged q/q
Underlying Solvency II ratio unchanged q/q QUARTERLY SOLVENCY POSITION (EURm) SOLVENCY II RATIO SENSITIVITY Base 221% Own funds SCR Solvency II ratio Equity markets (20)% 235% 266% 284% 296% 317% 237% 221% 221% 216% 2,532 2,498 Interest 2,378 2,412 211% rates (100)bps 2,198 2,140 2,200 2,158 Interes
Slide 21: Own funds increased q/q exceeding dividend accrual
Own funds increased q/q exceeding dividend accrual BREAKDOWN OF OWN FUNDS (EURm) Solvency II ratio COMMENTS 216% ▪ Own funds increased by EUR 60 million during Q1, exceeding dividend accrual based on FY2023 dividend level ▪ Market risk, and especially equity risk is the most significant risk SCR ele
Slide 22: Q1 organic capital generation clearly positive
Q1 organic capital generation clearly positive COMPONENTS OF ORGANIC CAPITAL GENERATION SEGMENTAL CONTRIBUTION (EURm) (EURm) At 200% Solvency II ratio 22
Slide 23: Outlook
Outlook
Slide 24: 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 25: Appendix
Appendix Supporting materials
Slide 26: Result by segments
Result by segments RESULTS 1–3 / 2024 . EURm Institutional Corporate Retail With Profit Other Total 1–3 / 2023 Fee result 5 5 5 0 0 15 14 Insurance service result 0 5 2 0 0 7 8 Fee result from investment and asset management services 5 1 3 0 0 8 6 Net finance result 0 0 0 31 -1 30 13 Investment retu
Slide 27: Development of policy savings (Original portfolio)
Development of policy savings1 (Original portfolio) WITH PROFIT POLICY SAVINGS 2019–Q1/2024, EURm COMMENTS 3,000 ▪ With-profit portfolios decreased in 2,500 line with expectations 422 ▪ Policy savings with highest (3.5% 400 2,000 374 and 4.5%) guarantees down by EUR 360 34 million 380 373 1,500 1,61
Slide 28: Sustainability at Mandatum
Sustainability at Mandatum Q1 SUSTAINABILITY HIGHLIGHTS ✓ Mandatum’s Sustainability ✓ Mandatum earned the Future ✓ Mandatum published its Sustainable Insurance Policy, Report 2023 was published. Workplaces certificate for the which has been compiled based on third time in a row as proof of the UN Pr
Slide 29: CSM development – 1–3/2024
CSM development – 1–3/2024 CSM DEVELOPMENT (1-3/2024; EURm) CSM SENSITIVITY (3/2024; EURm) Discount rate (100)bps -9 Discount rate +100bps 11 Equity markets (20)% -59 Equity markets +20% 59 Credit spreads +50 bps -5 • Positive CSM development due to higher than expected AuM growth in Unit-linked pol
Slide 30: Fixed income assets and liability cash flow profile adjusted with swaps
Fixed income assets and liability cash flow profile adjusted with swaps ORIGINAL PORTFOLIO (EURm) SEGREGATED PORTFOLIO (EURm) 600 150 500 100 400 300 50 200 0 100 0 -50 -100 -200 -100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Slide 31: 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