IG Group Holdings PLC

Earnings Release • Aug 29, 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

TCS Group Holding PLC reports IFRS results for 2Q and first half of 2023

• Total revenues grew 21% to RUB 112.3 bn in 2Q'23 (2Q'22: RUB 93.2 bn)
• Total customers reached 35.3 mn in 2Q'23 (2Q'22: 25.7 mn)
• Non-credit business lines amounted to 51% of revenues

● Net profit was RUB 20.4 bn in 2Q'23 with ROE of 35.5%

LIMASSOL, CYPRUS — 29 August 2023. TCS Group Holding PLC (MOEX: TCSG) ("TCS", "We", the "Group", the "Company"), a leading provider of financial and lifestyle services via its digital ecosystem, today announces its consolidated IFRS results for the three and six months ended 30 June 2023.

KEY PERFORMANCE METRICS

Key metrics, mn	2Q'23	2Q'22	1Q'23	Y-o-Y Change, %	Q-o-Q Change, %
Total customers	35.3	25.7	32.8	38%	8%
Active customers	24.5	18.2	22.8	35%	7%
Monthly active users (MAU)	25.2	19.5	24.0	29%	5%
Daily active users (DAU)	10.7	7.5	10.2	43%	5%

FINANCIAL AND OPERATING REVIEW

RUB bn	2Q'23	2Q'22*	∆	1Q'23	∆	1H'23	1H'22*	∆
Interest income	67.9	52.2	30%	60.2	13%	128.1	101.6	26%
Interest expense	-13.1	-21.5	-39%	-12.1	8%	-25.2	-33.2	-24%
Net interest income	53.5	29.7	80%	46.9	14%	100.4	66.4	51%
Net interest income after provisions	42.4	17.9	137%	34.6	23%	77.1	33.7	129%
Fee and commission income	30.2	30.5	-1%	26.7	13%	56.9	65.0	-12%
Fee and commission expense	-13.6	-8.7	57%	-10.3	32%	-23.9	-22.6	6%
Net fee and commission income	16.6	21.8	-24%	16.4	1%	33.0	42.4	-22%
Total operating expenses	-45.2	-31.0	46%	-40.5	11%	-85.7	-61.1	40%
Profit before tax	25.2	4.3	5.9x	20.9	20%	46.1	6.3	7.4x
Net profit	20.4	3.0	6.7x	16.2	25%	36.6	4.5	8.2x

*Revised 2022 figures due to adoption of IFRS 17 standard in relation to recognition of insurance assets and liabilities retrospectively from January 1, 2022.

Ratios	2Q'23	2Q'22	∆	1Q'23	∆	1Н'23	1Н'22	∆
Return on equity	35.5%	6.5%	+29 p.p.	30.5%	+5 p.p.	33.0%	4.8%	+28.2 p.p.
Net interest margin	14.5%	10.2%	+4.3 p.p.	13.6%	+0.9 p.p.	14.1%11.6%		+2.5 p.p.
Cost of risk	5.7%	7.5%	-1.9 p.p.	7.0%	-1.3 p.p.	6.3%	9.7%	-3.4 p.p.

RUB bn	30 Jun 2023	31 Mar 2023	∆	31 Dec 2022	∆	30 Jun 2022	∆
Total assets	1 753	1 676	+5%	1 596	+9.8%	1331	+32%
Net loans and advances to customers	784	683	+15%	606	+29%	584	+34%
Cash and treasury portfolio	446	515	-13%	512	-13%	413	+8%
Total liabilities	1 514	1456	+4%	1 390	+9%	1140	+33%
Customer accounts	1 313	1275	+3%	1 192	+10%	983	+34%
Total equity	239	219	+9%	206	+16%	191	+25%

Ratios	30 Jun 2023	31 Mar 2023	∆	31 Dec 2022	∆	30 Jun 2022	∆
Share of NPLs	10.3%	11.4%	-1.1 p.p.	12.1%	-1.8 p.p.	10.7%	-0.4 p.p.
Tier 1 capital ratio	18.4%	18.0%	+0.4 p.p.	16.9%	+1.5 p.p.	19.2%	-0.8 p.p.
Total capital ratio	18.4%	18.0%	+0.4 p.p.	16.9%	+1.5 p.p.	19.2%	-0.8 p.p.

In 2Q'23, the Group's total revenue grew by 21% year-on-year to RUB 112.3 bn (2Q'22: RUB 93.2 bn). Gross interest income increased by 30% year-on-year to RUB 67.8 bn (2Q'22: RUB 52.2 bn), driven by the growth of loan portfolio and expansion of our customer base.

Gross interest yield increased to 25.5% in 2Q'23 (2Q'22: 24.1%), mainly as a result of changes in the loan mix. The interest yield on the Group's securities portfolio decreased to 5.6% (2Q'22: 6.4%) due to lower interest rates compared to the same period of last year.

In 2Q'23, interest expense declined by 39% year-on-year to RUB 13.1 bn (2Q'22: RUB 21.5 bn). The Group's cost of borrowing decreased from 8.3% in 2Q'22 to 3.9% in 2Q'23, following the year-on-year decline of market rates.

In 2Q'23, net interest income grew by 80% year-on-year to RUB 53.5 bn (2Q'22: RUB 29.7 bn).

Fee and commission income decreased by 1% to RUB 30.2 bn (2Q'22: RUB 30.5 bn). Net fee and commission income decreased by 24% to RUB 16.6 bn (2Q'22: RUB 21.8 bn). The decline is largely attributed to the high base effect of 2Q'22, when volatile macro environment elevated FX transactions.

Excluding effect of FX transaction fee income, our net fees and commission income generated growth of 4% year-on-year in 2Q'23.

Cost of risk fell to 5.7% 2Q'23 from 7.5% in 2Q'22. Our risk-adjusted net interest margin increased to 11.5% (2Q'22: 6.1%).

In 2Q'23, non-credit revenue represented 51% of the Group's revenue and 27% of the Group's profit before tax.

At the end of 2Q'23, the Group had:

• 35.3 mn total customers
• over 28.8 mn total current account customers with a total balance of RUB 1 063 bn across all accounts
• over 1 mn total SME customers, with a total current account balance of RUB 257 bn
• over 4.8 mn total Tinkoff Investments customers

In 2Q'23, total operating expenses increased by 46% year-on-year to RUB 45.2 bn (2Q'22: RUB 31.0 bn), driven by expansion of our customer base and our investments in our IT platforms and talent.

The Group reported quarterly net profit of RUB 20.4 bn in 2Q'23, which was a 25% quarter-onquarter increase and a significant recovery year-on-year. ROE for 2Q'23 was 35.5%, further improving from 30.5% in 1Q'23 (2Q'22: 6.5%).

In 2Q'23, the Group continued to maintain a healthy balance sheet, with total assets growing 32% year-on-year to RUB 1,753 bn (30 Jun'22: RUB 1,331 bn).

The Group's net loan book increased by 34% year-on-year to RUB 784 bn (30 Jun'22: RUB 584 bn), also the gross loan book increased by 34% to RUB 920 bn (30 Jun'22: RUB 687 bn).

The Group's NPL ratio reached 10.3%, improving both year-on-year (30 Jun'22: 10.7%) and improving quarter-on-quarter (31 Mar'23: 11.4%). Credit loss allowance coverage was at 1.4 times non-performing loans.

The Group's customer accounts increased by 34% to RUB 1 313 bn (30 Jun'22: RUB 983 bn).

Total equity increased by 25% to RUB 239 bn (30 Jun'22: RUB 191 bn) on the back of net profit capitalization.

Sanctions

On 25 February 2023, Tinkoff Bank became subject to asset freeze sanctions in the EU under the Council Implementing Regulation (EU) No 2023/429, implementing Council Regulation (EU) No 269/2014 (the "EC Regulation 269").

On 19 May 2023, one of the Group's subsidiaries, Tinkoff Bank, became subject to an asset freeze sanctions in the UK having been designated in the Consolidated List of Financial Sanctions Targets in the UK pursuant to the Sanctions and Anti-Money Laundering Act 2018.

On 20 July 2023, one of the Group entities, Tinkoff Bank, was included into the Specially Designated Nationals and Blocked Persons List, or the SDN List, in the U.S., and also sanctioned by Canada.

The Company and its controlled subsidiary undertakings (other than the Bank and any controlled subsidiary undertakings of the Bank) are not subject to any sanctions in the UK, EU, U.S. and Canada. The Management of the Group is continually updating the impact on the business.

The financial statements will be available on the TCS Group Holding Plc website at https://tcsgh.com.cy

For enquiries:

IR@tcsgh.com.cy

About TCS Group

TCS Group is an innovative provider of digital financial and lifestyle services. Branchless since its inception in 2006, TCS developed a full range of in-house proprietary technology solutions and services, including digital banking, brokerage, acquiring and other merchant solutions, insurance, SME banking and much more.

Important Legal Information

The information and statements contained or referred to in this announcement do not constitute or form part of, and should not be construed as, any public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. The distribution of this document in certain jurisdictions may be restricted by law. Recipients are required by the Group to inform themselves about and to observe any such restrictions. No liability to any person is accepted in relation to the distribution or possession of this document in any jurisdiction.

UK MAR

This announcement is released by TCS Group Holding plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal Act) 2018 ("UK MAR") and is disclosed in accordance with the Company's obligations under Article 17 of UK MAR.

Forward-looking statements

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and Tinkoff Bank. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. The Group and Tinkoff Bank wish to caution you that these

statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff Bank do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group and Tinkoff Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, Tinkoff Bank and their respective operations.