Hoist Finance Ab · OMXSTO:HOFI
Hoist Finance Ab — Q4 2024 Earnings Presentation
22 slides from Hoist Finance Ab's earnings presentation, Feb 7, 2024
Slide 1: Q4 2024 Results presentation
Q4 2024 Results presentation ia 7 February 2025 - HoistFinance
Slide 2: Today's presenters
of HoistFinance Today’s presenters | Christian Wallentin CFO & Deputy CEO Harry Vranjes CEO Classification: Public 2
Slide 3: Key highlights Q4
Key highlights Q4 Profit before tax amounted to SEK 281m, compared to SEK 257m in the same quarter last year. Underlying profit before tax amounted to SEK 336m vs SEK 237m Return on equity amounted to 15.5%, compared to 11.4% in the same quarter last year Investments in new portfolios at SEK 1.9bn i
Slide 4: Key highlights - full year
Key highlights - full year Profit before tax amounted to SEK 1.3bn, compared to SEK 0.8bn Return on equity amounted to 16.8%, compared to 11.1% in 2023 Investment volume at SEK 10.8bn, compared to SEK 7.1bn last year Net investment portfolio growth of 26% (divested book value ~ SEK 0.6bn) Additional
Slide 5: Q4 Financial summary
of HoistFinance Q4 Financial summary Quarter 4 Quarter 4 SEKm 2024 2023 Change Interest income 1,268 941 35% Other interest income 207 47 >100% » Continued strong growth Interest expense -478 -253 89% Net interest income 997 735 36% » Supportive market pricing Other income (including impairments) 16
Slide 6: Investment volumes
Investment volumes 2021 2022 2023 2024 SEK 3.5bn SEK 6.9bn SEK 7.1bn SEK 10.8bn ! ! ' ! ! 45 @ 28 2,5 24 2,2 24 19 19 17 12 13 ul 07 %9 07 02 Q1-21 Q2-21 Q3-21 Q4-21 QI-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23Q3-23 Q4-23 Q1-24 Q2-24.Q3-24 Q4-24 of HoistFinance Record investment year Supportive repricing con
Slide 7: Investment portfolio
of HoistFinance Investment portfolio +100% +19% Y 2 a et Growth on track to achieve long-term target » Co-investments and increased market coverage expanding investment opportunity Supportive market dynamics Funding model competitive edge 2023 Q4 2024 2026 goal Region! {ll Greece Ml Spain Ml France
Slide 8: Q4 asset class mix
Q4 asset class mix Investment portfolio 33% SEK 30.7bn = Unsecured Secured Investment portfolio 8% 8% 30.7bn 15% italy = Spain Poland "Germany = France Greece = UK Sweden BeNe+other of HoistFinance » Asset and geographical diversification » Geographical market expansion into Portugal » Sound portfol
Slide 9: Operating leverage development
of HoistFinance Operating leverage development Q4 to Q4 Investment portfolio Operating Total cost Profit SEKbn income SEKm before tax SEKm SEKm » Investment portfolio growth at 26% (422%) (23%) +9% » Strong collection performance 31 1.130 6 = [je & —-_ mo —_ 257 336 » Scale benefits » Cost control a
Slide 10: 2024 P&L full year
2024 P&L full year vs prior year SEKm 2024 2023 Change Interest income acquired loan portfolios 4,523 3,469 30% Other interest income 472 177 >100% Interest expense 1,428 -829 72% Net interest income 3,567 2,817 27% Total impairment gains & losses 527 357 48% Other income 295 206 43% Net result from
Slide 11: Operating leverage development (2024 vs PY)
of HoistFinance Operating leverage development (2024 vs PY) Investment portfolio Operating Total cost Profit SEKbn income SEKm before tax SEKm SEKm » Strong growth at right price and risk 31 4.392 3.099 1.300 2612 » Healthy portfolio driving operating income 3.496 - . . 24 997 » Cost control and sca
Slide 12: Net Interest income margin
of HoistFinance Net Interest income margin 12.2 seceeceeeeeensee @d » Material net interest income margin expansion » Strong growth at right price and risk » Accretive market prices Q4'23 Q4'24 —= Investment Portfolio, SEKbn Net interest margin, % Classification: Public 12
Slide 13: Direct costs
Direct costs Investment portfolio 24 2023 SEKbn 31 2024 of HoistFinance + — Higher growth in investment portfolio than direct Direct costs costs SEKm * Continuous improvements / restructuring across several markets (sale of 3PC, Spanish unsecured operations, BeNe model) * Continued large reduction i
Slide 14: Indirect costs
of HoistFinance Indirect costs + Ongoing improvement focus Investment portfolio Indirect costs * Cost discipline providing scale benefits in high SEKbn SEKm inflation environment + SEK 40m per annum save as we insource and improve IT services (+43 FTEs) Indirect FTEs Insourced IT FTEs 24 f 24%) on 4
Slide 15: Growth in underlying RoE
of HoistFinance Growth in underlying RoE 30 31 26 27 » Underlying ROE increase 18 v7 7 » Sourcing and disciplined pricing 16 16 15 14 » Cost control 13 » Scale benefits Qr24 Q2'24 Q3'24 Q4'24 — Investment portfolio (SEKbn) 1") Reported RoE (%) Ill Underlying RoE (%) Classification: Public 15
Slide 16: CET1 capital position
of HoistFinance CET1 capital position Capitalisation, % 1.91% CET1-target range 10.91% » Strong capital position, above regulatory requirement » Continued high investment capacity » Significant capital repatriation to shareholders Regulatory capital requirement Margin above capital CET1-ratio requir
Slide 17: Liquidity position
Liquidity position of HoistFinance NSFR, % Liquidity reserve, SEKbn 154 24 128 121 115 116 «100% 15 11 8 8 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 LCR, % Comments 1,012 . » Overall balance sheet growth due to growing NPL 752 and liquidity portfolio 623 630 661 — » Large liquidity
Slide 18: Funding
of HoistFinance Funding + Diversified, stable and competitively priced funding base supporting asset growth so 372%] asx * Market issuance of SEK 1.7bn : ; 45 4,0% * Senior unsecured debt at 10% and deposits at 82% of overall funding 40 3,5% 35 3,0% 30 2,5% Distribution of funding 25 -— = = 2,0% 20
Slide 19: Continued strategic attractiveness of SDR
Continued strategic attractiveness of SDR * Hoist Finance intends to leverage SDR as long- term strategic solution for backstop derogation + Investing with strategic partners further expands our investable market * Co-investments and securitisation provide additional tools to manage the backstop unt
Slide 20: Follow-up on financial targets
Follow-up on financial targets 16 13 2022 SSD RoE >15% 17 2 11 2 2023 2024 Non-recurring Ill BaU ot CET1 2.3-3.3 pp above regulatory CET1 req. 2022 2023 2024 _ _ Range 2.3-3.3 pp above regulatory req. — Regulatory limit EPS annual growth 2022 Al rate of 15% 2023 2024 of HoistFinance «@ Dividend poli
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Slide 22: Disclaimer
of HoistFinance Disclaimer IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Hoist Finance AB (publ) (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectiv