INDEXO — Investor Presentation 2023

May 31, 2023

Why does Latvia need INDEXO Bank?

June 2023

Disclaimer

The licensing process for obtaining a banking license is lengthy, technically complex and subject to approvals from the Bank of Latvia and the European Central Bank. INDEXO has formally submitted an application for a banking license, but the process is still ongoing and is awaiting approvals from Bank of Latvia and European Central Bank.

The information presented in this presentation is provided solely for informational purposes. Unless stated otherwise, the information provided reflects estimates by INDEXO. These estimates are based on the analysis of multiple sources, including data compiled by relevant government institutions, publicly available information, as well as INDEXO's internal data and expertise.

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

INDEXO Story

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

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

Over 110 000 clients

The fastest-growing AUM 710+ M EUR pension fund manager in the Baltics, with brand emphasis on transparency, low cost and being local

INDEXO 2nd Pillar pension plans are the best performing plans in the Latvian market proving the thesis that passive low-cost funds beat active management

Strong operating income before customer acquisition

Year	2018	2019	2020	2021	2022
Net commission income [2PL]	305 552	585 458	972 467	1 595 942	2 242 677
Net commission income [3PL]	-	-	-	6 079	34 943
Net commission income	305 552	585 458	972 467	1 602 021	2 277 620
Administrative and other expense allocation	(262 728)	(390 011)	(397 181)	(605 157)	(783 893)
Marketing and client acquisition expenses	(375 525)	(849 348)	(586 290)	(976 630)	(1 579 333)
Operating income before marketing and client acquisition
	42 824	195 446	575 286		996 864 1 493 727
Corporate tax	0	0	0	0	0
Operating income	( 332 701)	( 653 902)	( 11 004)	20 234	( 85 606)

• Marketing and operating costs can be decreased without affecting daily operations of the company
• Customers are effectively attracted at a significant discount from their total lifetime value
• Operating income before customer acquisition costs has been positive since 2018 and is steadily growing

Data source: manapensija.lv, internal data 6

Strong 2nd pillar pension market growth expected

2nd pillar pension market share as of 15.05.2023

Launching banking services

Citadele

19.8%

SEB

18%

projections in December

Sources: Latvia's GDP based on 2022 Notes: 3) ECB (2023) 2) EU bank branches also includes Luminor 1)ECB (Q3 2022), Loans include household debt and non-financial corporation debt

Opportunities in 400+ MEUR a year Latvian banking industry

We are building cloud native IT infrastructure, that enables agile product development. Competition in mobile offering is weak, we can make a difference.

According to market survey approximately 150-200 thousand people in Latvia are already open to start using INDEXO services.*

INDEXO has more than 110 thousand high-quality customer base and with 40 % higher AUM per client compared to the market average.

Building best-in-class IT infrastructure

INDEXO is well positioned to disrupt the market

*Norstat survey, November 2022, n+1003, age group - from 25 to 60 years old. Source:

Cloud native, composable banking IT architecture

INDEXO app will raise the standards for mobile banking in Latvia

Make payments

Manage pension savings

Borrow when necessary

Save and earn interest

and many more options…

INDEXO Bank intends to improve access to financing in Latvia by igniting competition in lending market

-0,80%

0,20%

1,20%

2,20%

3,20%

4,20%

Even 5 % market share will have a significant impact on lending market and create a lot of shareholder value.

We are building cloud native IT infrastructure, that enables agile product development. Competition in mobile offering is weak, we can make a difference.

According to market survey approximately 150-200 thousand people in Latvia are already open to start using INDEXO services.*

INDEXO has more than 110 thousand high-quality customer base and with 40 % higher AUM per client compared to the market average.

Building best-in-class IT infrastructure

INDEXO is well positioned to improve access to financing in Latvia

*Norstat survey, November 2022, n+1003, age group - from 25 to 60 years old. Source:

indexo.lv

For a better financial environment in Latvia!