Slide 1: LHV Group Q3 2017 results
LHV Group Q3 2017 results 24 October 2017
Slide 2: Third quarter with strong trends
Third quarter with strong trends Client convenience * 400 clients through video recognition * Developing mobile bank Records in business volumes * Deposits * Loans * Funds * Clients * Payments * Card transactions Pension funds’ Estonian investments « Rental apartment houses in Pdhja-Tallinn Change i
Slide 3: Rapid volume growth and record-breaking client activity
LHV Group Rapid volume growth and record-breaking client 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 Depostis
Slide 4: Comparison with financial plan
LHV Group — comparision with financial plan Net income compared to financial plan +0.3 EURm Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit attr. to own
Slide 5: LHV Banking
LHV Banking Strong growth in loan portfolio for second quarter in row Q3-15 3-15 4-15 Q4-15 Corporate loans Deposits 1,28C oe = 754 Lt a oe ® aie a2-16 8-16 Q4-t6 ariz Q217 Q3-17 Demand deposits "Term deposits Loans (net) 647 — _ ~ — .- © go = ar-i6 a2-16 a3-16 Qa-i16 aiiz Q2-17 Q3-17 = Retail loans
Slide 6: LHV Banking
LHV Banking Q3 cost/income below 50% Financial results, EURt 9 quarters O3-17 Qe417 Aquarter Net profit was 4.0 EURm. In addition Net interest income amnnnnne 7,928 7,658 +270 to regular income and cost base Net fee and commission income LT] 2,143 1,809 +334 significant impairments were made. Other
Slide 7: LHV Banking — comparison with financial plan
LHV Banking — comparision with financial plan Profit ahead of financial plan by +0.2 EURm 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 De
Slide 8: LHV Asset Management
LHV Asset Management Estonian investments offer more stable returns EURm Assets under management and customers customers (th.) 1067 1100 ‘AUM +14%. 200 937 ad lc 880 rt 180 660 160 440 140 220 120 0 400 Q3-15 Ons at-t6 22-16 03-16 a1-i6 Qt-t7 2-17 3-17 Pillar II pensionfunds mm Other funds — Active
Slide 9: LHV Asset Management
LHV Asset Management The growth of funds increased revenues Financial results, EURt 9 quarters Total revenue Selling expenses Other operating expenses Total operating expenses EBIT Net financial income | Income tax Net profit Pree Business volumes, EURm 9 quarters Pillar Il pensionfunds Pillar Ill p
Slide 10: LHV Asset Management — comparison with financial plan
LHV Asset Management — comparision with financial plan YTD revenues 10 EURm Financial results, EURt 13months Sep-17__—s*YTD17,_—sYTDi6._—~——Ss FPYTD_AYTDFP * Revenues are smaller than Total revenue “vA 1,094 9,958 9,155 10,151 -193 | , , ’ lanned due to lower AUM Total expenses ZA 542 4,994 4,788 4,
Slide 11: Stock information
LHV Group Stock information mms LHV chaily turnover (EUR 7 I ja I Mi) ad Au ll 7 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jui Aug Sep Dynamics of LHV stock price and comparison indexes = LHV stock (LHV1T) —— OMX Tallinn index (OMXTGI) 145% OMX Baltic index (OMXBGI) May Jun Jul Aug Sep
Slide 12: 100 EURm 118 EURm
100 EURm 17.2% Investment decisions to Estonia ROE 118 EURm 15,500 Loan porfolio growth Bank customer increase 15
Slide 13: Annexes
Annexes
Slide 14: Quarter influenced by payment intermediaries
LHV Group Quarter influenced by payment intermediaries % LCR 300 zou 119 100 | | ° co am a 2 @ a a w@ ao 2016 2017 % CTI capital adequacy 20 16 14.6 as a4 Gt 2s tt 2016 2017 ——=LHV internal Tier 1 ratio limit 14 EURm Loan-deposit ratio % 1,300 100 1,040 60 780 eo 520 40 260 20 ° fo} 25 20 a3 a4 Qt a
Slide 15: Q3 results influenced by few customers
LHV Group Q3 results influenced by few customers R Corporate loans by ratings 30 | | | | 1 | | | 13 4-6 7 8 9 a 6a 8 fo} 101213 as-16 02-17 mas-17 EuRm Mokilizingas loans overdue porfolio ° | 3 i i i 08 4 a Bees 2 3.4 > VTTrrire a a4 ul a a U4 a a us 2016 2017 loan impairments = over 90 days or cont
Slide 16: AS LHV Group contact details
AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE