Slide 1: LHV Group Q4 2016 results
LHV Group Q4 2016 results 7 February 2017
Slide 2: Successful fourth quarter
Successful fourth quarter • • • • 2
Slide 3: Strong growth of business volumes, ROE 19.6%
LHV Group Strong growth of business volumes, ROE 19.6% Financial results, EURt Net interest income Net fee and commission income === 9 quarters Other income Total revenue Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit 9 quarters I Business volume
Slide 4: LHV Banking
LHV Banking Loan porfolio increased 58 EURm QoQ 4-14 Q115 Hl |_| 414 115 Corporate loans Deposits Q2-18 3-15 4-18 ai-t6 2-16 3-16 Q4-16 Demand deposits "Term deposits Loans (net) 2-15 3-15 Q4-15 Qt-16 2-16 03-16 Q4-16 = Retail loans = Loans to related companies = Discontinued operations Bank client
Slide 5: LHV Banking
LHV Banking Business volumes growing, results affected by revaluation of bond portfolio 9 quarters Peri | 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 Net profit Bus
Slide 6: LHV Asset Management
LHV Asset Management Asset under management increased by 37 EURm EURm Assets under management and customers customers (th.) ore 0 ari 1a aot 200 800 180 870 600 — 160 —_— —_- —_—_ 400 140 200 120 0 100 aaa O15 245 BSS HG ORG BSG Pilar II pensionfunds === Other funds — Aative customers of Pillar I pe
Slide 7: LHV Asset Management
LHV Asset Management Higher business volumes, results affected by increase in intangibles D&A Financial results, EURt Total revenue Selling expenses Other operating expenses Total operating expenses EBIT Net financial income Net profit Business volumes, EURt Pillar Il pensionfunds Pillar Ill pension
Slide 8: Mokilizingas
Mokilizingas Changes in regulations affect new sales EUR EURm co ata Qat4 tts 2415 3-15 Hire purchase Qt-15 2-15 8-15 Hire purchase Loans (net) 3% 38 4-15 até 2-16 ™ Consumer loans New sales 13 Q4-15 Q1-16 Q2-16 = Consumer loans 03-16 ® Leasing Q3-16 36 416 Q4-16 Changed regulation has affected new
Slide 9: Mokilizingas
Mokilizingas Sale of defaulted portfolio boosts the profits Financial results, EURt 9 quarters Net interest income . Net fee and commission income == Total revenue Total operating expenses Earnings before impairment Impairment losses on loans cols Income tax PLELL ELE Net profit ee | Business volume
Slide 10: LHV market capitalization increased more than 32% in the quarter
LHV Group LHV market capitalization increased more than 32% in the quarter EUR 10.0 LHV stock price and turnover mms LHV chaily turnover (EUR 95 —=LHV stock 90 8.5 600 8.0 15 20 70 : Mette ald Tr tl ool tL gt fT May Jun Jul ‘Aug Sep Oct Nov Dec 140% 130% 120% 110% 100% 90% 10 Dynamics of LHV stock p
Slide 11: Annexes
Annexes
Slide 12: Loan to deposit ratio 69%, capital adequacy strong
LHV Group Loan to deposit ratio 69%, capital adequacy strong % LCR 300 222 200 100 | ° a a ce co a a a a at 2015 2016 % CT1 capital adequacy 20 16 16.1 8 ‘ ° a a a @ a OF @ a m@ 201 2016 —— LAV internal Tier 1 ratio limit 12 EURm Loan-deposit ratio % oc 100 64C 80 48C 0 2c 40 160 20 ° ° a4 oF a2 @3
Slide 13: Asset quality remains at a good level
LHV Group Asset quality remains at a good level % Corporate loans by ratings aC 28 2c 15 1c mile ° _ 130046 7 8 9 1012 18 4-15 803-16 504-16 a4 at a2 a8 @ at a 2c15 2016 loan impairments. = over 90 days or contract cancelled 13 Mokilizingas loans overdue porfolio 35 Up to 90 days loan impairments ®o
Slide 14: AS LHV Group, Tartu mnt 2, Tallinn
AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE