Hoist Finance

Earnings Release • Mar 31, 2021

UK and Spain (mainly for the reasons outlined above) and also, but to a lesser extent, for portfolios in France.

In total, these adjustments have a negative effect on the ERC of approx. SEK 470m (1.4 per cent of total ERC), which translates into an impairment of approx. SEK -350m (1.7 per cent of total book value), significantly affecting Hoist Finance Q1 earnings. For 2020 and Q1-21 combined, the total negative forward looking impairments amount to approx. SEK 470m, which is 2.1 per cent of the average book value in the same period. This could be compared to an average Covid-19 impairment of approx. 3 per cent in the industry.

As for the quarterly result, portfolio acquisitions are expected to come in at around SEK 750m. Expenses are trending favourably compared to Q4-20, and we are delivering on our cost savings program according to plan. Accounting for all effects, EBT is expected at approx. SEK-250m. Despite the impairments, the capital position remains solid with a CET1 ratio for Q1 at around 10.0 per cent, which is within the target range. Below the estimated financial impact in Q1 2021:

• Portfolio acquisitions: SEK ~750m $\bullet$
• Forward-looking negative (non-cash) impairments: SEK ~350m
• Total expenses: SEK ~575m $\bullet$
• Profit before tax: SEK ~-250m
• CET1 ratio: ~10.0 per cent $\bullet$

"We are all going through exceptional times and the uncertainty is still high. With vaccines being rolled out globally, I hope that we are nearing the end of the Covid-19 pandemic. The operational and financial effects for Hoist Finance have been significant, but I am confident that our prudent approach will provide support going forward. As banks are starting to divest their non-performing loans, I am convinced that we will get back to growth while continuing to progress on our strategic agenda and helping people keep their commitments", says Klaus-Anders Nysteen, CEO of Hoist Finance.

This information is information that Hoist Finance AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication by Andreas Lindblom at 22:50 CEST on 31 March 2021.

For more information, please contact: Andreas Lindblom, Head of Investor Relations Telephone: +46 (0) 72 506 14 22