Nordnet Ab · OMXSTO:SAVE
Nordnet Ab — Investor Presentation (October 2024)
120 slides from Nordnet Ab's investor presentation, October 2024
Slide 1: Company presentation October 2024
Company presentation October 2024
Slide 2: Introduction to Nordnet
Introducti@Atoe Nordnet.
Slide 3: This is Nordnet
This is Nordnet. We exist to democratise savings and investments 989bn 2.05m 51m Savings capital Active customers in On-exchange trades SEK as of Sep 2024 4 Nordic countries as of Sep 2024 in LTM 3Q 2024 3
Slide 4: Pan-Nordic powerhouse
Pan-Nordic powerhouse. #1 Nordic broker #1 domestic broker on Nordic exchanges 2023 Total turnover on Nordic exchanges 2023 (SEKbn) 1,400 2023 2022 2021 1,200 NPS position in Nordics #1 1,000 #1 NPS position vs key competitors 800 with #1 rank in DK, FI, NO; #2 in SE 600 400 Market share in Nordics
Slide 5: #1 choice for Nordic savers and investors
Aspiration. #1 choice for Nordic savers and investors. “The Nordic’s most satisfied customers enabled by a one stop-shop for savings and investments and an outstanding customer experience ” 5
Slide 6: Building the best platform for savings and investments
Customer Promise. Building the best platform for savings and investments. “Through leading UX, cutting-edge financial products, automated and inspiring customer journeys as well as tools for informed decisions, we are building the best platform for savings and investments.” 6
Slide 7: Most inspiring savings experience
Brand position. Most inspiring “We make it fun to save and invest, encouraging our customers every step savings of the way. Our engaging platform keeps customers coming back and experience. inspires them to be better investors.” 7
Slide 8: Clear strategic focus
Clear strategic focus. Individuals Digital distribution Savings and investments Profitable growth in the Nordic region 8 8
Slide 9: Nordnet caters to three distinct customer groups
Nordnet caters to three distinct customer groups. Share of Sep 2024 savings capital1 (%) ▪ Grow within Saver Savers “Do it segment to become #1 (47%) for me” choice for savers by focus on funds, pension and ease of use Investors “Help me (49%) do it” ▪ Maintain dominance within Investor segment by c
Slide 10: One-stop shop for savings and investments
One-stop shop for savings and investments. Securities brokerage ✓ ✓ ✓ ✓ Shares, bonds, warrants, options, futures, ETFs, ETPs, certificates Funds ✓ ✓ ✓ ✓ >2,000 mutual funds, index funds, hedge funds, fund-of- funds as well as fund guidance and advisory Pension ✓ ✓ ✓ ✓ Stock lending, endowment insur
Slide 11: Best in class user experience in our channels
Best in class user experience in our channels. NEXT web application New Nordnet app Shareville NEXT released in 2019 New app released 2H 2018 Social investment community 11
Slide 12: Release cadence and deploys
1.6 hours Release cadence of web-app NEXT 3 days Release cadence of native app 30,824 Deploys during 2023
Slide 13: Digital platform development since 1996
We have worked hard to perfect our digital platform for savings and investments since 1996. 2001: Listing on the 2017: Take-private by Öhman 1996: Birth of Nordnet 2020: Re-listing Stockholm Stock Exchange and Nordic Capital Start-up phase – Geographic and Transformation Capture growth pioneer in on
Slide 14: Nordnet is taking market share in a growing market
Nordnet is taking market share in a growing market. Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2023 | Million Savings capital, SEKtln December 2023, SEK tln Nordnet’s share Market size current Market size extended Nordnet’s share of addr
Slide 15: Six main revenue growth drivers
Nordnet has six main revenue growth drivers. New customer Revenue1 growth SEKm New net savings 4,967 Savings 4,550 capital growth 3,639 3,382 2,689 Product 1,524 penetration 2019 2020 2021 2022 2023 LTM New product Q3 24 launches Opportunistic (1) Adjusted revenue (SEK), subtracting SEK66m in 2019 1
Slide 16: Only pan-Nordic digital savings and investment platform at scale
Only pan-Nordic digital savings and investment platform at scale. Sweden is still the largest market… …but other Nordic countries are …and at good margins growing faster… Nordnet’s LTM 3Q 2024 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)1 SEKm Sep 2
Slide 17: Strong long-term growth in customers and savings capital
Strong long-term growth in customers and savings capital. Customers1 Savings capital Thousands SEKbn 2,050 989 1,863 1,708 825 1,601 802 715 1,221 564 914 765 395 669 567 272 286 490 235 367 395 433 200 314 344 166 224 136 193 90 102 90 104 86 103 128 157 49 55 39 21 36 2010 2018 2007 2023 2005 2020
Slide 18: Why do customers choose Nordnet?
Why do customers choose Nordnet? Overall One stop Customer competitive shop x experience x price always building on Trust 18
Slide 19: Embedded growth in customer base as younger customers accumulate wealth
Embedded growth in Nordnet’s customer base as younger customers accumulate and inherit wealth. Strong future growth outlook Distribution of Nordnet’s savings capital and number of customers by age 1 Average AUM (SEK, RHS) Share of total customers (%, LHS) Share of new customers (%, LHS) 5.0% 1,800,0
Slide 20: Cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage. Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating ex
Slide 21: Revenue growth and operating leverage drive profit growth
Revenue growth together with operating leverage drives significant profit growth. Adjusted revenue Adjusted operating expenses³ Adjusted profit before tax SEKm SEKm SEKm 44 61 53 46 59 56 32 24 17 17 17 16 25 59 67 63 69 70 4,967 4,550 3,639 3,471 3,382 3,160 2,689 2,451 2,115 1,524 1,576 1,300 1,39
Slide 22: Medium-term financial targets
Medium-term financial targets. Target Customer growth Average savings capital per customer2 Shareholder remuneration % SEK (‘000) 31% Deliver superior shareholder returns 477 464 416 444 435 through a dividend payout ratio of Around SEK420k per customer 70% 15% 12% 10%1 9% 10-15% p.a. Capital ratio
Slide 23: Positioned to be long-term winners
We are positioned to be long-term winners. #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 23
Slide 24: Nordnet 2025
Nordnet 2025. Strategic ambitions
Slide 25: Key strategic ambitions
Key strategic ambitions. Engaged customers Engaged customers ▪ Building the best platform for savings and investments ▪ #1 NPS & high retention ▪ Upward trend on eNPS Engaged ▪ Attract and retain top employees talent HEADLI Profitable ▪ Capture Nordic growth NE growth potential ▪ Stable cost level ▪
Slide 26: How we will get there
How we will get there. 1 Delightful 2 digital 3 One-stop channels Full process shop automation Cloud- Powered 4 powered The most by data 5 platform satisfied & AI customers in the Nordics Sustainability Most in Nordnet’s inspiring 6 7 DNA brand Strong compliance Engaged and risk mgmt employees 8 9 2
Slide 27: Channels: Best in class user experience
1 Channels: Best in class user experience. “Delightful digital channels with leading UX” Key initiatives NEXT as a financial cockpit and as a consolidator of key customer segment capabilities App to transition from “control of investments on the go” to “live your financial life in the app” including
Slide 28: Key selling proposition
1 Key selling proposition. Wide Smooth Leading product UX x x customer range journeys enabled by: Real-world x Scalable agile platform 28
Slide 29: A typical day on the Nordnet platform 2023
1 A typical day on the Nordnet platform 2023. EU market open: ~22k request/s US market open: ~11k request/s EU market close (SE/FI/DE) +85m net fund buys US market close SEK 196k 299k DAU app 92k DAU web trades 52k x-border trades +619 +139m +9m 5.2bn API order operations/s Note: Average 2023 figure
Slide 30: NEXT web application
1 NEXT web application. 24% of Nordnet users use only or mainly the web 92k Daily Active Users (DAU) with a 21% DAU/MAU ratio 73k Trades per day representing 44% of daily traded value during 2022 Share of traded value per month 30 Note: 2023 figures
Slide 31: Nordnet app
1 Nordnet app. 74% of Nordnet users use only Only web The or mainly the app Nordne t app 299k Daily Active Users (DAU) with a 37% DAU/MAU ratio Only appapp Mainly 74% 64k Mainly Trades per day representing app 30% of daily traded value during 2023 31 Share of traded value per month Note: 2023 figure
Slide 32: Shareville social investing community
1 Shareville social investing community. 400k users have shared their portfolios on Shareville 1.5x Traded value of a Shareville user vs a non-Shareville user1 1.9x Commissions of a Shareville user vs a non-Shareville user1 32 Note: 2023 figures
Slide 33: Digital channel engagement
1 Digital channel engagement. Active users Social community activity Investing activity 443k Daily Active Users (DAU) 439k Active Shareville 645k Monthly Investing Customers (MIC)* Average Q3 2024 users Average Q3 2024 1.1m Monthly Active Users (MAU) 210k Shareville posts created in Q3 2024 362k Ave
Slide 34: One-stop shop for savings and investments
2 One-stop shop for savings and investments. Securities brokerage ✓ ✓ ✓ ✓ Extend lead within securities brokerage Funds ✓ ✓ ✓ ✓ Become as strong within Funds as we are in brokerage Pension ✓ ✓ ✓ ✓ Step-change in growth throughout Nordic markets Margin lending ✓ ✓ ✓ ✓ Boost trading power thru capital
Slide 35: Automated customer journeys
3 Automated customer journeys. Become a customer Inspire me to save and invest Buy or sell as security Open a pension account Open an account Guide me to start saving Buy or sell a fund Move my pension Deposit & withdraw money Move my savings How am I doing? Setup a pension saving plan Manage occupa
Slide 36: Nordnet is powered by cloud technology
4 Nordnet is powered by cloud technology. Enabling a platform for innovation Speed Scalability Security Innovation 36
Slide 37: Increased leverage from cloud technology drives innovation pace
4 Increased leverage from Cloud Technology drives innovation pace. 75 62 30,824 35 13,040 7,564 12 1 2019 2020 2021 2022 2023 2021 2022 2023 % development on # of releases Nordnet X 37
Slide 38: Scaling up development capacity
4 Scaling up development capacity. 51 31 32 158 149 45 25 118 16 2021 2022 2023 2021 2022 2023 2021 2022 2023 FTE FTC #Signed #Development Engineers Teams (EOY) #Engineers 38
Slide 39: Availability 2023
4 Availability 2023. The bottom line 99.9% 99.9% 99.9% 2021 2022 2023 39
Slide 40: Release cadence and deploys
4 1.6 hours Release cadence of web-app NEXT 3 days Release cadence of native app 30,824 Deploys during 2023
Slide 41: Powered by Data & AI
5 Powered by Data & AI. Our intent Data-informed organization Data-driven development to Provide easy access to relevent become part of our DNA and data & insights for all Nordnetters drive a build-measure-learn cycle in order to power continuous when perfecting important improvements of everyhing w
Slide 42: Sustainability at core of strategy
6 Sustainability at core of strategy. Democratize savings and investments ▪ Increase the general knowledge about personal finance ▪ Develop user-friendly and inspirational services for saving and investments ▪ A better gender distribution within savings and investments Sustainable savings ▪ Have a b
Slide 43: We focus on education and inspiration to increase financial knowledge
6 Deepdive: We focus on education and inspiration to increase the knowledge of personal finance. ▪ Nordnet Academy – learning center with a dedicated sustainability section ▪ Nordnet blog, podcasts and videos – largest educational video platform in the Nordics ▪ Guidance flow – monthly savings from
Slide 44: We work to get more women to invest
6 Deepdive: We work to get more women to invest. Share of female customers ▪ Nordnet Female Network – a network to encourage 33% 34% more women to invest 32% ▪ Educational events and social media posts in each country 2021 2022 2023 ▪ Founder of a tech-talent network, Power Women in Tech, with appur
Slide 45: Broad offering within sustainable savings
6 Deepdive: Broad offering within sustainable savings. Distribution of fund capital, 2023 5% 16% ▪ Majority of Nordnet-branded funds follow ESG indices Article 9 ▪ Broad ETF offering enabling customers to invest in all Article 8 sustainability trends Other 79% ▪ Vast majority of fund capital is toda
Slide 46: Leading platform for sustainable investments
6 Deepdive: Leading platform for sustainable investments. ▪ First in Sweden to offer screening of mutual funds and ETFs to exclude unwanted holdings ▪ First in Sweden platform to introduce Article 8 / Article 9 tagging of funds ▪ Guidance flow for mutual funds can populate allocation with sustainabl
Slide 47: A responsible business in all aspects
6 Deepdive: A responsible business in all aspects. Nordnet emissions in tonnes* Nordnet has established goal to decrease emissions in 200 152.5 162.6 4 line with the Paris Agreement 121.5 Climate impact 100 2 Our digital business model is inherently energy-efficient 0 0 2020 2021 2022 Climate compen
Slide 48: Most inspiring brand
7 Most inspiring brand. “We make it fun to save and invest, encouraging our customers every step of the way. Our engaging platform keeps customers coming back and inspires them to be better investors.” 48
Slide 49: Strong compliance and risk management
8 Strong compliance and risk management. Three lines of defence Board and Executive Management overall responsible Risk Control and Business Line Management Internal Audit Compliance functions First line of defense: Second Line of Defense: Third line of defense: Risk Ownership Control Assurance Owns
Slide 50: Improved risk culture in first line of defense
8 Improved risk culture in first line of defense. Tone from the top Proactive engagement with Legal, Risk and Compliance Education and workshops Processes and clarified responsibilities 50
Slide 51: Increased staffing in control functions
8 Increased staffing in control functions. Risk Compliance Legal Financial Crime Prevention 89 69 60 56 Staffing in control 44 44 functions has 35 39 increased three 31 26 times since 2018 18 12 18 7 6 7 12 5 9 5 6 6 7 4 7 9 9 4 6 6 2018 2019 2020 2021 2022 2023 51
Slide 52: Control functions report directly to CEO
8 Control functions report directly to CEO. CEO Risk Control Compliance Chief Compliance Chief Risk Officer Officer Financial Crime Legal Prevention General Counsel Chief Financial Crime Prevention Officer Country Product Tech Pension Finance Human Resources Communications organizations CPO CTO CEO
Slide 53: Engaged employees
9 Engaged employees. People agenda PURPOSE & STRATEGIC HYBRID EMPLOYER LEADERSHIP DIVERSITY VALUES DIRECTION WORK MODEL BRANDING eNPS Average last 4 quarters 42 45 45 40 41 41 36 36 37 35 32 30 27 23 25 17 ENPS 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 53
Slide 54: Values well ingrained throughout the organization
9 Values well ingrained throughout the organization. Passion. Simplicity. Transparency. “We lean forward and walk the “We believe that easy-to-use We are open, honest and extra mile to inspire and motivate products, straight to the point available, both internally and our customers and colleagues.”
Slide 55: Efficient operating model with clear responsibilities
9 Efficient operating model with clear responsibilities. CEO Countries Staff functions Product Sweden Norway Denmark Finland Finance ▪ One product and tech Financial Crime Prevention organization supporting all Nordic Marketing countries Communications, IR & Sustainability ▪ Front-to-back responsibi
Slide 56: Technology
Technology.
Slide 57: Nordnet is powered by cloud technology
Nordnet is powered by cloud technology. Enabling a platform for innovation Speed Scalability Security Innovation 57
Slide 58: Software delivery at speed
Software Delivery at speed. Speed At the core we have 29 empowered product teams The right people Clear objectives 30,000 Deploys 2023 High autonomy Cross-functional ”How do you approve 30,000 deploys each year?” You don’t! 58
Slide 59: Release frequency drives business agility
Release frequency drives business agility. Speed Faster feedback Increased flexibility 30,000 Deploys 2023 Faster time to value Reduced risk #alwaysbeshipping 59
Slide 60: Cloud technology provides powerful infrastructure
Today cloud technology provides Speed us with powerful infrastructure. And enables focus on our core business Fast experimentation Scalability & Security & implementation No maintenance Data leverage & Artificial Intelligence 2 hours Lead time to setup new infrastructure 60
Slide 61: Vision to enable speed
Vision to enable speed. Speed Leverage off-the-shelf products Build vs buy Our vision Maximize time Re-usability spent innovating for Increase efficiency by removing re-invention the customer. Automation Our mantra is: “no manual nothing” Release at will At will is not next Thursday 61
Slide 62: A typical day on the Nordnet platform
A typical day on the Nordnet platform. Scalability EU market open: ~23k request/s US market open: ~12k request/s EU market close (SE/FI/DE) +240m net fund buys US market close SEK 216k 361k 100k trades DAU app DAU web 63k x-border trades 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18
Slide 63: Shift left strategy ensures strong focus on security
Our “shift left” strategy ensures Security a strong focus on Security. Engaging our entire 250 people Tech team in securing our platform Traditional Security Shift-left Central team owns security Each Product Team owns security of their services Drawbacks: Benefits: ▪ Bottlenecks ▪ Scalable: Faster
Slide 64: Securing the future by moving security to the cloud
Securing the future by moving Security to the cloud. We are building the capability to operate our services globaly Our cloud platform offer Supported by a risk-based security roadmap ▪ Zero Trust ▪ Crowdstrike for Endpoint Detection & ▪ Encryption at rest and in transit Response ▪ Infrastructure as
Slide 65: Experiments are embedded in our development
Experiments are embedded in our Innovation development. Majority of all releases are supported by data, experiments or leading metrics Data-driven development 65
Slide 66: What is an A/B-test and why?
What is an A/B-test and why? Innovation We randomly divide the customers into two or more groups Main reasons for A/B-testing and give them a ▪ Compare metrics between different experience groups in parallel. ▪ Isolate the changes and rule out other factors ▪ Faster iteration and improvements ▪ Redu
Slide 67: Help users save monthly
Help users save monthly. Innovation What did we do? When a customer is visiting a fund that they currently don’t own, replace the Sell Result button with Save monthly. +13% uplift in customers starting monthly savings journey +52m Additional net savings in monthly savings yearly Old New 67
Slide 68: Nordnet AI strategy
Innovation Nordnet AI strategy is focused on preparing Nordnet for an AI-driven future. ▪ Building upon our long term commitment of integrating AI into our products to make them more personalized and engaging. ▪ Utilising generative AI where proven to increase operational efficiency. 68
Slide 69: Social investing driven by AI
Social investing Innovation driven by AI. Integration of Shareville has enabled all Nordnet customers to participate in social investing. Much of the content consists of comments ideally suited for generative AI and traditional Machine Learning. Today, we have developed internal tools for summarizin
Slide 70: The Feed
The Feed. VEFA Recency Innovation How recent was a post published? Relevence How relevant is a post for a customer? Engagement How many clicks, likes, comments does a post get? 70
Slide 71: Measuring tech performance
Measuring tech performance. 42% 94% Progress Software on Cloud Delivery migration Apps on NordnetX Q3 2024 Performance High or elite performing teams (State of Devops) Q3 2024 99.9% Operational Performance Availability Q3 2024 71
Slide 72: Geographic diversification
Geographic diversification.
Slide 73: Building our competitive moat for more than two decades
We have been building our competitive moat for more than two decades. Operating in all four Nordic markets with… Local Fully Strong and presence Operating licensed trusted with at scale and brand localized regulated offerings Leading customer proposition based on… One stop Leading shop for Product C
Slide 74: Nordnet is taking market share in a growing market
Nordnet is taking market share in a growing market. Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2023 | Million Savings capital, SEKtln December 2023, SEK tln Nordnet’s share Market size current Market size extended Nordnet’s share of addr
Slide 75: Strong growth runway across the Nordics
Strong growth runway for Nordnet across the Nordics. Addressable market size and Nordnet’s market share by country 20231 SEKtln Nordnet market share ~5% ~6% ~6% ~10%2 ~6%2 ~2.3x Extended market for Finnish wrapper ~2.1 ~13.9 ~0.4 ~3.6 ~1.7 ~2.2 ~6.0 Total addressable market (1) Source: SCB, Svensk F
Slide 76: Nordnet competes with online platforms and incumbent banks
Nordnet competes primarily with online platforms and incumbent banks. Sweden Norway Denmark Finland Main digital platforms Continued migration from incumbent banks to digital platforms Main incumbent banks 76
Slide 77: Only pan-Nordic digital savings and investment platform at scale
Only pan-Nordic digital savings and investment platform at scale. Sweden is still the largest market… …but other Nordic countries are …and at good margins growing faster… Nordnet’s LTM 3Q 2024 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)1 SEKm Sep 2
Slide 78: Sweden
Sweden. Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2023 | Million Savings capital, SEKtln December 2023, SEK tln Nordnet’s share Other OTPs Market size Nordnet market share Nordnet’s share of addressable market 3% 5% 2.0 4% 18% 1.6 1.4 1
Slide 79: Sweden
Sweden. Achievements 2023 Customer behaviour Customers able to change commission class daily New customer offering improved 638k savings capital per 3,500 income per 3.5 trades per customer customer (SEK)1 customer (SEK)2 per month3 Award for Nordnet Index Global 125 fund 50% own shares 45% own fund
Slide 80: Norway
Norway. Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2023 | Million Savings capital, SEKtln December 2023, SEK tln Nordnet’s share Market size Nordnet market share Nordnet’s share of addressable market 2% 6% 1.2 7% 5.6 ~2.7 0.4 ~2.2 0.3 0.
Slide 81: Norway
Norway. Achievements 2023 Customer behaviour SEK 6.8bn net savings in funds 3.5 x increase in social media followers 346k savings capital per 2,500 income per 2.3 trades per customer customer (SEK)1 customer (SEK)2 per month3 #1 domestic broker Oslo Børs 67% own shares 41% own funds 27% cross-border
Slide 82: Denmark
Denmark. Share of total population Addressable market growth outlook1 Market share of addressable market3 December 2023 | Million Savings capital, SEKtln December 2023, SEKtln Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share Extended
Slide 83: Denmark
Denmark. Achievements 2023 Customer behaviour Continued strong customer inflow and net savings All time high brand position and #1 in EPSI survey 479k savings capital per 2,700 income per 2.0 trades per customer customer (SEK)1 customer (SEK)2 per month3 Increased flow into Nordnet bank pension offe
Slide 84: Finland
Finland. Share of total population Addressable market growth outlook1 Market share of addressable market3 December 2023 | Million Savings capital, SEKtln December 2023, SEKtln Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share 5% 10% 1
Slide 85: Finland
Finland. Achievements 2023 Customer behaviour #1 EPSI ´rating: the most satisfied investors Successful launch of endowment wrapper 293k savings capital per 1,600 income per 1.4 trades per customer customer (SEK)1 customer (SEK)2 per month3 Suomi index became #1 fund in FI (#owners) 66% own shares 53
Slide 86: Wide product range and diversified revenue streams
Wide product range and diversified revenue streams.
Slide 87: One-stop shop for savings and investments
One-stop shop for savings and investments. Securities brokerage ✓ ✓ ✓ ✓ Shares, bonds, warrants, options, futures, ETFs, ETPs, certificates Funds ✓ ✓ ✓ ✓ >2,000 mutual funds, index funds, hedge funds, fund-of- funds as well as fund guidance and advisory Pension ✓ ✓ ✓ ✓ Stock lending, endowment insur
Slide 88: Resilient revenues bolstered by diversified revenue streams
Resilient revenues bolstered by diversified revenues streams. Adjusted revenue by income type Savings capital by product SEKm1 SEKbn Brokerage Funds Deposits Net transaction related Net fund related income Net Interest income Other income² Adjusted revenue / avg. savings capital (bps) 989 802 825 69
Slide 89: This is Securities Brokerage
Securities Funds Pension Credit Brokerage This is Securities Brokerage. Fully integrated Securities business: Corporate Business ▪ Shares, bonds, warrants, options, futures, Actions Development certificates, stock lending and margin lending IPOs, AGM/EGMs, Exchange Traded Products, dividends, splits
Slide 90: Leading securities brokerage offering
Securities Funds Pension Credit Brokerage Leading securities brokerage offering. Brokerage capital development Customer behavior1 SEKbn ~900k 1.3 trn Sweden Norway Denmark Finland customers made a trade In traded value | SEK 20% 573 573 123 490 132 404 28% 116 89 132 159 2.3 trades 27% 268 125 19% 9
Slide 91: Number of trading customers and share of all customers
Share of all customers 70% 10% 100% 30% 40% 50% 60% 80% 90% 20% 1Q|17 2Q|17 3Q|17 Securities Brokerage 4Q|17 1Q|18 2Q|18 3Q|18 Trading customers 4Q|18 1Q|19 2Q|19 3Q|19 4Q|19 Funds 1Q|20 Average 2017-2022 Share of all customers 2Q|20 3Q|20 4Q|20 1Q|21 2Q|21 3Q|21 4Q|21 remains robust. 1Q|22 2Q|22 Pe
Slide 92: Trades per day have almost doubled since 2019
Securities Funds Pension Credit Brokerage Trades per day have almost doubled since 2019 and each trade drives more revenue. Trades per customer per trading day Total number of trades and net income/trade Trades per customer / day (LHS) Trades per day Cross border (m) Domestic (m) Net income / trade
Slide 93: Case study: Crypto-related instruments
Securities Funds Pension Credit Brokerage Case study: Crypto-related instruments. Focus on education and ensuring customers understand products and risks ~1% of Nordnet customers Nordnet provides access to crypto-backed hold crypto-related assets ETNs/ETCs on regulated trading venues No wallets or “
Slide 94: This is Mutual Funds
Securities Funds Pension Credit Brokerage This is Mutual Funds. Fully integrated Funds business: Fund Savings Open fund platform ▪ >2,000 mutual funds, including index funds, and guidance services hedge funds and multi-asset funds and tools ▪ Best in class screening tools and guidance ▪ Fully scalab
Slide 95: Leading Nordic fund supermarket
Securities Funds Pension Credit Brokerage Leading Nordic fund supermarket. Fund capital by country Fund capital by allocation1 SEKbn SEKbn Active Nordnet funds Other ▪ Fund capital growing 2X total savings capital Sweden Norway Denmark Finland Index Fixed income ▪ One quarter of fund capital is Nord
Slide 96: This is Pension
Securities Funds Pension Credit Brokerage This is Pension. Wholly-owned pensions group: ▪ Complete pension solutions in Sweden for both private individuals and employers, with additional offerings in Norway, Denmark & Finland ▪ Private pension savings and individual pensions savings products offered
Slide 97: Pension to benefit from continued deregulation
Securities Funds Pension Credit Brokerage Pension to benefit from continued deregulation. Pension capital Customer behavior1 SEKbn o/w 54% 278k 670k endowment Sweden Denmark insurance Norway Finland 184.5 185.8 29.3 151.9 0.3 35.5 Customers Avg AuM per pension 21% 126.7 20.2 28.6 24.0 customer ~15%
Slide 98: Opportunity to grow in the pension market
Securities Funds Pension Credit Brokerage Opportunity to grow in the pension market. Nordnet’s share of addressable market1 Key focus areas (SEKtln) ▪ Enhance process for transferring pension capital to Nordnet ▪ Increased cross sales to existing customer base ▪ Lobby for removing requirement of emp
Slide 99: Case study: Finnish Wrapper
Securities Funds Pension Credit Brokerage Case study: Finnish Wrapper (released 2023). What is “Finnish wrapper”? ▪ Finnish wrapper is a tax efficient insurance product Development addressable FI wrapper market1 with an inheritance plan included SEK billion ▪ It has a wide instrument universe includ
Slide 100: Case study: Livrente
Securities Funds Pension Credit Brokerage Case study: Livrente. What is “livrente”? ▪ ”Livrente” is a Danish pension product which pays Development addressable livrente market a monthly amount as long as you live SEK trillion ▪ Some 50% of the Danish pension market is Addressable today Extended mark
Slide 101: This is Credit
Securities Funds Pension Credit Brokerage This is Credit. Highly complementary suite of credit products ▪ Margin lending allows customers to amplify returns ▪ Own mortgage to attract and retain HNWIs ▪ Automated credit processes ▪ Capital-light credit resulting in high RoEs 29.5bn >50% in total lend
Slide 102: Net interest income overview
Securities Funds Pension Credit Brokerage Net interest income overview. Volume liquidity portfolio Net interest income SEKbn SEKm Deposits Lending Other/equity 64 Liquidity portfolio Other NII 691 58 61 58 703 703 679 653 50 Credit portfolio 47 45 43 41 42 43 634 Deposit interest 599 449 425 438 403
Slide 103: Liquidity portfolio snapshot
Securities Funds Pension Credit Brokerage Liquidity portfolio snapshot: ~SEK1.65bn in 2024* *Assumes 3Q 2024 volume with addition of unsecured loans balance (3.6bn), currency allocation, credit spreads and market consensus estimates for 3M fwd IBOR development. Volume SEKbn Deposits Lending 1 Other/
Slide 104: Loan portfolio snapshot
Securities Funds Pension Credit Brokerage Loan portfolio snapshot: ~SEK1.55bn in 2024* *Assumes 3Q 2024 volume (excl. unsecured), 3M fwd IBOR consensus estimates and pass-through of; Margin lending (50%), Mortgage (100%) Volume1 Unsecured Mortgage Margin lending SEKbn ~SEK 1,350m ~SEK 1,550m Net int
Slide 105: Deposit interest cost snapshot
Securities Funds Pension Credit Brokerage Deposit interest cost snapshot: SEK 600m in 2024* * Assumes volumes as per September 2024 and interest as per October 9 with 100% pass-through of 3M fwd IBOR changes. Assumes that interest on non-savings account deposits remains at 3Q24 levels. Sept 2024 Dev
Slide 106: Scalable business model with high operating leverage
Scalable business model with high operating leverage.
Slide 107: Cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage. Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating ex
Slide 108: Financial education through savings economists and investment coaches
Financial education through our visible savings economists and investment coaches… Frida Bratt Ara Mustafa Savings economist Investment coach ▪ 1,950 media quotes / statements ▪ Weekly podcast host for Sparpodden ▪ Savings profile of the year 2022 ▪ 22,400 followers on X ▪ 17,100 followers on X Roge
Slide 109: More than 500k members in our community
…and more than 500k members in our community, with millions of views, streams and sessions… 4,0 million views 84K 121K followers followers 440K 114K users followers 5,9 6.6 million million entries streams 81K 142K followers followers 53K followers Note: Follower-base as of October 2024; Sessions/Vie
Slide 110: Highly profitable customer growth
…results in highly profitable customer growth. High share of low-cost organic searches together with …results in low customer acquisition cost and a very increasing retention rates… attractive customer lifetime value Share of new customers by Retention of active customer base Nordnet’s customer acqu
Slide 111: Revenue growth and operating leverage drive profit growth
Revenue growth together with operating leverage drives significant profit growth. Adjusted revenue Adjusted operating expenses³ Adjusted profit before tax SEKm SEKm SEKm 44 61 53 46 59 56 32 24 17 17 17 16 25 59 67 63 69 70 4,967 4,550 3,639 3,471 3,382 3,160 2,689 2,451 2,115 1,524 1,576 1,300 1,39
Slide 112: A capital light business with high return on equity
A capital light business with high return on equity. 112
Slide 113: Nordnet has a capital light business model
Nordnet has a capital light business model. Nordnet’s income model Off balance sheet On balance sheet Liquidity portfolio Credit portfolio Savings capital SEK ~989bn SEK ~43bn SEK ~31bn ~69% ~24% ~7% ~53% ~36% ~11% Margin Mortgage Shares Funds Deposits Unsecured lending3 lending Net commission Net c
Slide 114: Strong capital situation creates flexibility
Strong capital situation creates flexibility. Regulatory metrics ¹ 69.3 Consolidated situation Actual (vs req.) Requirement ▪ Dividend payout ratio of 70% Deposits in SEKbn Total capital ratio 23.0% (+7.5pp) 15.5% ▪ Capital ratio targets: CET1 ratio 18.3% (+7.6pp) 10.7% ▪ Leverage ratio between 4.0-
Slide 115: Strong liquidity position and balanced maturity profile
Strong liquidity position with and good credit quality and balanced maturity profile. Exposure class Portfolio rating Maturity structure SEKbn % (S&P equivalent) SEKbn Unrealized result (SEKm) HTC -1.1 13.6 AFS1: +18.9 Gov/Gov reg/Supr. AA 0% Covered 4% AAA A 11% 20% BBB 2% 9.3 0% 10% 8.8 Sr./other
Slide 116: Strong cost to income ratio and attractive return on equity
Strong cost to income ratio and attractive return on equity. Adjusted cost income ratio1 Adjusted return on equity1,2 90% 84% 60% 77% 80% 72% 50% 45% 70% 44% 43% 40% 60% 40% 36% 50% 40% 30% 40% 36% 31% 29% 28% 30% 20% 13% 20% 10% 10% 7% 10% 0% 0% 2017 2018 2019 2020 2021 2022 2023 LTM Q3 2017 2018 2
Slide 117: Shareholder remuneration
Shareholder renumeration. Nordnet’s dividend policy remains: “Deliver superior total returns to shareholders via a pay- out ratio of 70% of statutory net income” Preparing for a long-term buyback program to manage excess capital and reach target leverage ratio level over time • Leverage ratio betwee
Slide 118: Appendix
TX | Appendix.
Slide 119: New customers are younger, higher share of women and own more funds
New customers are younger, higher share of women and own more funds. Share of customers per cohort and age1 Share of customers by cohort and gender2 % 3Q24 | (‘000) 2 2 027 Male Female Corporation Pre 2020 2020-2021 2022-2023 2024 6.0% 9% 2024 838 668 330 190 2 027 5.0% 16% 2022-2023 3% 2% 3% 3% 3%
Slide 120: New customers remain active, grow net savings and drive high margins
New customers remain active, grow net savings and drive high margins. Revenue margin 2024 Share of cross-border trades 2024 bps % | million trades 100 25.3 7.5 4.8 1.5 39.0 26% 35% 35% 35% 29% Cross-border 67 53 58 54 Pre 2020 2020-2021 2022-2023 2024 All Pre 2020 2020-2021 2022-2023 2024 All Share