INDEXO — Interim / Quarterly Report 2023

Aug 9, 2023

INDEXO Webinar on H1 2023 consolidated financial results

Valdis Siksnis Chairman of the Board

August 9, 2023

.

Henrik Karmo Board Member

INDEXO Story

Launched in 2017 as a challenger brand and the first passive pension manager in Latvia

In April 2021 launched the first 3rd Pillar robo-advisory product with automated investment decisions in index funds

INDEXO

In July 2022 held a successful IPO by raising 7.49 million EUR for Bank business development

77% annual growth in the last 5 years

Key H1 2023 Highlights

26.3 k

INDEXO

753.8 million EUR Total value of AUM

113.3 k Total number of customers

1.4 million EUR Commission income generated

Number of new customers over 12 months

Our Assets Under Management have grown by more than 50%

Assets Under Management End of June 2022

Assets Under Management End of June 2023

Our revenues also keep growing quickly

2300

Commission income Jan - Jun 2022

Commission income Jan – Jun 2023

Key metrics have grown by more than 10x in 5 years

Period	Clients	AUM
H1 2018	5,871	43.1M
H1 2023	113,268	753.8M
	19.3X	17.5X

Revenue	Operating Income*
117,424	4,194
1,386,025	832,723
11.8X	198.6X

*before client acquisition and other business project expenses

lmpressive growth of AUM and Clients

Data source: annual reports, manapensija.lv data, internal data

INDEXO -

Total AUM, millions EUR

-

Total Clients, thousands

-

Total Market shares

INDEXO: The fastest growing 2nd Pillar Pension Manager in Latvia

Change in number of 2nd Pillar clients during H1 2023

INDEXO Data source: manapensija.lv Change in 2nd Pillar AUM during H1 2023

94.05%

End of June 2022 customer retention rate

End of June 2023 customer retention rate

Our customer retention figure has slightly worsened from H1 2022 to H1 2023

2nd pillar pension market share AUM (as of 30 June, 2023)

| NコミXO Data source: manapensija.lv as of 30 June 2023

Our business growth in 2nd pillar can be attributed to growing monthly contributions and new customers joining INDEXO

2nd Pillar pension waterfall chart Q2 2022 – Q2 2023

Millions EUR, based on management estimates

2nd Pillar pension waterfall chart Q2 2022 – Q2 2023 Millions EUR, based on management estimates Our business growth in 161 2nd pillar can be 35) 77 attributed to growing 478 monthly contributions and new customers joining INDEXO Market Monthly Inflows from Q2 2022 Churn

55% increase

From: 4.8 million euro in Jun 2022 To: 7.4 million euro in Jun 2023

Our 3rd pillar pension is also growing

3rd pillar pension clients, 3rd pillar pension assets, millions EUR thousands 15.1 12.4 8.8 7.5 10.2 6.2 8.0 6.4 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

INDEXO

vs 48% in June 30, 2022

Commission income

Interest income/expense

Administrative and other expenses for

pension managemen

INDEXO keeps investing in future growth by acquiring new clients

Operating income before clien acquisition and other business project expense

Client acquisitions cost

Pension management operating resul

Bank development expense

IPO expense

Non-cash personnel option expense

Corporate income tax

Comprehensive losses for the

reporting period

		Jan – Jun 2023	Jan – Jun 2022
		Unaudited	Unaudited
e	EUR	1,386,025	1,039,552
e	EUR	7,855	(1,656)
Dr t	EUR	(561,157)	(419,510)
it t S	EUR	832,723	618,386
ഗ	EUR	(988,430)	(773,275)
t	EUR	(155,707)	(154,889)
്ട	EUR	(1,047,354)	(217,134)
്ട	EUR		(63,927)
്ട	EUR	(230,576)
×	EUR	(2,298)
e d	EUR	(1,435,935)	(435,950)

Client acquisition is partially capitalized and should be viewed on a cash flow basis

0.3M

1.0M

We have invested 1.9* million EUR in bank development

We have started implementing a new CRM system for our pension fund

Based on the feedback from our customer base we are close to finalizing the card product design and features

We are building the core team for the bank. Currently, around 20 people working on bank project

We are making excellent progress with our exclusive native mobile app, which is the only one of its kind in the market

* Im is reflected as expense and the remaining has been capitalized (related to IT investments).

Simple for everyday user, customizable for power users

INDEXO

Potential INDEXO credit card design

Consolidated Statement of Comprehensive Income

	Notes
Commission income	2
Interest income/expense	4,5
Administrative expenses	3
Other operating expenses	6
Profit/(loss) before corporate income tax
Corporate income tax
Profit/(loss) for the period
otal comprehensive profit/(loss) for the period, attributable to shareholders for the period
Earnings per share
Diluted earnings per share

an-Jun	an-Jun
2022	2023
Unaudited	Unaudited
EUR	EUR
1,039,552	1,386,025
(1,656)	7,855
(1,450,362)	(2,804,194)
(23,484)	(23,323)
(435,950)	(1,433,637)
	(2,298)
(435,950)	(1,435,935)
(435,950)	(1,435,935)
(0.14)	(0.40)
(0.13)	(0.38)

Consolidated Statements of Financial Position

ASSETS

Cash and cash equivalents

Receivables

Prepayments

Contract acquisition costs

Other assets

Intangible assets, property, plant and equipm use assets

Participation in the share capital of associated

Loans to associated companies

Other securities and investments Total assets:

EQUITY AND LIABILITIES

Accrued liabilities Trade payables

Taxes and national social insurance mandator

Lease liabilities

Other liabilities

Total liabilities:

Equity

Share capital

Share options

Share issue premium

Retained losses

Profit/(loss) for the period

Total equity and reserves:

TOTAL EQUITY AND LIABILITIES

	Notes	Jun	Jun	Dec
		2023	2022	2022
		Unaudited	Unaudited	Audited
		EUR	EUR	EUR
	7	4,959,431	740,120	7,231,123
	8	254,132	175,075	220,190
	9	126,645	3,587	24,279
	10	1,203,972	769,522	990,417
	11	5,001	3,058	6,937
ent, and right-of-	12	990,659	219,174	259,047
companies	13	58,800		49,000
	14	69,961
	15	11,663	11,663	11,663
		7,680,264	1,922,199	8,792,656
	16	234,437	288,932	193,584
	17	100,586	45,460	89,072
y contributions	18	125,627	18,158	95,245
	12	69,257	109,233	90,468
	19	264,472	188,987	233,046
		794,379	650,770	701,415
	20	3,568,511	3,033,511	3,568,511
		407,536	11,295	176,960
		7,062,908	107,908	7,062,908
		(2,717,135)	(1,445,335)	(1,445,335)
		(1,435,935)	(435,950)	(1,271,803)
		6,885,885	1,271,429	8,091,241
		7,680,264	1,922,199	8,792,656

Consolidated Statement of Changes in Equity

	Notes			Share issue		Profit/ (loss) for
		Share capital	Share options	premium	Retained losses	the period	Total
		EUR	EUR	EUR	EUR	EUR	EUR
At 31.12.2022		3,568,511	176,960	7,062,908	(2,717,135)	l	8,091,244
Increase in Share option reserves			230,576			(729,172)	(498,596)
Comprehensive income for the reporting period						(706,763)	(706,763)
At 30.06.2023		3,568,511	407,536	7,062,908	(2,717,135)	(1,435,935)	6,885,885
At 31.12.2021		3,016,987	5,436	77,175	(1,445,335)		1,654,263
Increase in Share capital		16,524		30,733			47,257
Increase in Share option reserves			5,859				5,859
Comprehensive income for the reporting period						(435,950)	(435,950)
At 30.06.2022		3,033,511	11,295	107,908	(1,445,335)	(435,950)	1,271,429

Consolidated Statement of Cash Flows

Cash flow from operating activities

Profit/ (loss) before corporate income tax

Depreciation of PPE and amortisation of right-o

Amortisation of contract acquisition costs

Amortization of Share option reserves

Interest income

Interest expense

(Decrease)/increase in cash and cash equiva operating activities before changes in assets

Increase in receivables, prepayments, and other Increase/(decrease) in accrued liabilities Increase/(decrease) in trade payables and other Corporate income tax Increase/(decrease) in cash and cash equiva operating activities Cash flow from investing activities PPE purchases Investment in the share capital of associated co Loans issued Interest received Other securities and investments Decrease in cash and cash equivalents from activities Cash flow from financing activities Share issue Payments for the right-of-use of assets Interest on the right-of-use asset (Decrease)/increase in cash and cash equiva financing activities Decrease in cash and cash equivalents

Cash and cash equivalents at the beginning period

Cash and cash equivalents at the end of the period

	Notes	an-Jun 2023	an-Jun 2022
		Unaudited	Unaudited
		EUR	EUR
		(1,433,637)	(435,950)
f-use assets	12	42,498	33,867
	10	104,394	56,938
		230,576	5,859
	ব	(9,052)
	5	1,197	1,656
alents from s and liabilities		(1,064,024)	(337,630)
er assets		(448,980)	(298,502)
		40,852	173,550
er liabilities		69,441	23,445
		(2,298)
lents from		(1,405,009)	(439,137)
	12	(774,112)	(21,635)
mpanies		(9,800)
	14	(68,600)
		7,691
	15
investing		(844,821)	(21,635)
			47,257
	12	(22,411)	(7,550)
	5	(1,197)	(1,656)
alents from		(23,608)	38,051
		(2,273,438)	(422,721)
of the reporting		7,232,869	1,162,841
reporting	7	4,959,431	740,120

22

INDEXO

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