INDEXO — Investor Presentation 2024

Nov 8, 2024

INDEXO

Webinar on 9M 2024 consolidated financial results

Valdis Siksnis AS INDEXO Banka Chairman of the Board

lvita Asare AS INDEXO Banka Chief Financial Officer

November 6, 2024

Henrik Karmo IPAS INDEXO Chairman of the Board

Another strong quarter for INDEXO Group with 43% y-o-y revenue growth in pension business and first 10 000 customers joining INDEXO Bank

Pension business delivering solid financial results and generates cash flow to support INDEXO Group further development

INDEXO 2mg and 3rd pension pillar equity plans are among the bestperforming in the Latvian market

INDEXO Bank finally is in the market, and attracted 9MEUR deposits during first month

INDEXO

INDEXO Bank is enhancing its Private customer offering with new services to be released already in Q4 2024

INDEXO well positioned to continue banking market disruption in 2025

lmpressive growth of AUM and Clients

INDEXO

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

Pension business delivering strong results, Q3 result impacted by operational expense one-offs

* - Despite having a higher commission income, due to higher AUM, the net profit before redistribution is lower due to reallocation of expenditures from the Bank and higher client acquisition costs. New IT investments were also made, we paid more in salaries, capitalized less of salespeople salaries and had a new lease asset, which we started to depreciate.

Data source: quarterly reports, internal data

4

Our business growth in 2nd pillar can be 2nd Pillar pension AUM growth drivers Q3 2023 – Q3 2024 Millions EUR, based on management estimates attributed to growing monthly contributions 191 and new customers 196 joining INDEXO 110 ( 109)

• From: 8.5 million euro in September 2023
  • lo: 10.2 million euro in September 2024 20% increase

INDEXO

INDEXO has the highest AUM per client and the gap between us and competitors is increasing

Manager	Yearly Change of AUM per client, EUR	% change
INDEXO	2317	31.4%
Competitor 5	1 478	27.6%
Competitor 2	810	13.7%
Competitor 7	1 287	26.8%
Competitor 3	1 400	31.3%
Competitor 6	854	23.3%
Competitor 4	494	13.3%

Data source: manapensija.lv data, VSAA

AUM per client, EUR

INDEXO pension business strong and profitable to support INDEXO Group

• Increase in the client base and AUM have contributed to 43% y-o-y growth in commission income
• 11% y-o-y driven by higher costs in several positions
• · Pension business net profit in September 94 372 EUR

INDEXO

INDEXO Pension business re

Commission income

Interest income/(expense)

Administrative and other exper management

Operating income before clic other business project exper

Client acquisition costs

Pension management opera

Non-cash personnel option ex

Corporate income tax

Comprehensive profit/(losse period

Data source: internal data * - Interest expense for Commitment letters

sults, EUR	Unaudited, FUR	Jan-Sep 2024 Jan-Sep 2023 Unaudited, EUR
	3 163 762	2 210 634
	(261 555)*	16 572
nses for pension	(976 385)	(876967)
ent acquisition and ાડેરી ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામના લ	1925822	1350 239
	(1 373 948)	(1 367 178)
ting result	551874	(16939)
penses	(209 503)	(310 509)
	(5 973)	(3 367)
es) for the reporting	336 398	(330 815)

Pension business challenges and opportunities

• · New fee scheme in process
• · Churn management
• · Contributions expected to drop from 6% to 5%
• 2nd Pillar API launch .
• 3rd Pillar promotion through bank app

Tiešraide: INDEXO Bankas atklāšanas pasākums

28.08. | plkst. 9.00

Banka

LETA,28.08.2024

Veicināt konkurenci ar izdevīgiem risinājumiem. Ko piedāvā jaunā "INDEXO Banka"?

Kāpēc "INDEXO" ir tev piemērotākais pensiju . līmeņa pārvaldītājs?

Banku sektors ir jāsapurina! Kā vērtē "INDEXO Bankas" ienākšanu tirgū

Beidzot banka, par kuru var teikt beidzot!

Foto: LETA

Labas ziņas Latvijai – banka uzsāk darbību!

INDEXO Banka, kas maina ierasto

SKATIES ATKLĀŠANU

T, 28. augusts ✔ Auguste, Guste
------------------------------------

|--|

oasākums

lvenā konkurente uz Rīgu ved las biedru un vēl vienu NHL

Darbu sāks "Indexo banka". Kā banku klienti izjutīs jaunā spēlētāja ienākšanu?

Tiešraide: INDEXO Bankas atklāšanas

ziedot.lv/Ukrainai; 90204113 (5 €) Kāda būs jaunās INDEXO bankas stratēģija?

AUTĀJUMS

INDEXO Bank is live with daily banking offer for Private customers

10 381 customers attracted while it took more than a year for our pension business to reach that number

It takes on average 5min* to open account via mobile app

Almost 9 MEUR in Retail customer deposits appreciation of advantages of our savings products

Fast, user friendly and transparent consumer lending process

*average median time for more than 6000 customers from phone verification sms till signing of general transaction rules

Impressive growth has continued during the second operating month. Deposits almost doubled

93% rate INDEXO Bank's account setup as easy. High marks for app design & cost satisfaction

Account opening process	4.6 out of 5
Mobile app design	4.3 out of 5
Plan costs	4 . O out of 5

Highest-rated aspects:

-

Data source: delfi.lv survey data, period: 30.09.-13.10.2024, n=985, all, 18+

· Ease of use • Functionality • Performance & speed

+1,38 € Nopelnītie procenti Pamatkonts Konta bilance: 1 445,42 €

We continue to develop our mobile app

Since launch we have already had 6 new versions of the application

Already fixed 200+ bug fixes and made small improvements

Visible improvements such as:

• daily visualization of earned interest and taxes withheld for deposits and vault;
• · full e-signature implementation;
• ability to generate formal PDF account statement;
• · performance improvements

The Bank is continuously improving its product offering and during 2025 the offering for Retail customers will be considerably extended

Q4

2024

Improvements and bug fixes

Regular payments

Mortgage lending

Family accounts

Google / Apple pay

2PL in Mobile app

Servicing of SMEs

The timetable indicated here is provisional and subject to change.

Q1 2025	Q2 2025	Q3 2025	Q4 2025

INDEXO Bank is operational just for 1 month with focus on customer acquisition

INDEXO Bank Profit and Loss Stateme

Interest income

Interest expense

Commission and fee income

Commission and fee expense

Net foreign exchange losses

Credit losses

Other operating expenses

Administrative expenses

of which IT expenses

Depreciation

Loss before corporate income tax

Corporate income tax

Loss for the period

Data source: internal data

nt, EUR	Jan - Sept 2024 Unaudited, EUR
	189 795
	(35 029)
	1 848
	(39 347)
	(857)
	(8 709)
	(178 134)
	(3 367 190)
	(1 362 946)
	(311 371)
	(3 898 994)
	(525)
	(3 899 519)

INDEXO Bank continues to make significant IT investments

INDEXO Bank Balance sheet, EUR

ASSETS

Other demand deposits at central banks

Financial assets measured at amortized o

of which consumer loans

Due on demand from credit institutions

Property, plant and equipment and right

Intangible assets

Other assets

Total assets

EQUITY AND LIABILITIES

Financial liabilities measured at amortize

of which deposits

Accruals

Tax liabilities

Other liabilities

Total liabilities

EQUITY

Share capital and options

Total equity

TOTAL EQUITY AND LIABILITIES

г

Data source: internal data

Sept 2024 Unaudited, EUR

15 756 133
332815
283 324
3927
2 179 681
3 867 508
336 288
22 476 352

ed cost	8 965 612
	8 965 612
	195 404
	117 945
	2 456 505
	11 736 466

10 6 73 9 8 8
10 22 3 / N O on Lo 3 00 100
7 4

The INDEXO Bank capital was increased by 2.3MEUR in September to support the ongoing business development

Tier 1 Capital MEUR 8.45 7.10 Q2 2024 Q3 2024

The goal of the Bank's capital management is to ensure continuity of the Bank's business and ability to generate return for its shareholders

*-internal minimum

Data source: internal data

Capital adequacy ratios and minimum requirement*

Total capital raised during 2024 will reach 12.3 million EUR as planned in financial forecasts SPO expected presented during SPO retained losses in 2024-2.17M

Indexo Group consolidated financials

Due to delay of the bank launch* financial forecast for Indexo Group 2024 was updated

INDEXO Bank, finally, is in the market to take its fair share

Addressable oligopolistic market of 622 million banking profits in 2023, and 304 million in H1 2024 is ripe for disruption

Huge underserved lending market opportunity, estimated to be 5+ bn

Latvia lacks successful local banks like Coop, LHV who have been building market share quickly in Estonia

INDEXO is positioned to shake up the market by leveraging its large, fast-growing customer base, a well-recognized brand, and a cuttingedge IT infrastructure

Find out more: indexo.lv/dubulto-algu

APPENDICES

21

Consolidated Statement of Comprehensive Income

Commission and fee income

Commission expense

Interest income calculated using

Administrative expenses

Interest expense

Other operating expenses

Credit losses

Loss before corporate income

Corporate income tax

Loss for the period

Total comprehensive loss for t to shareholders for the period

Basic earnings per share Diluted earnings per share

Data source: internal data

		Jan - Sept 2024 Jan - Sept 2023
		Unaudited, EUR Unaudited, EUR
	3 169 518	2 210 634
	(44 110)
g the effective interest rate	224 054	31 576
	(6 345 433)	(4 286 230)
	(481 821)	(1 680)
	(68 114)	(41 677)
	(10 716)
tax	(3 556 622)	(2 087 377)
	(6 498)	(4 151)
	(3 563 120)	(2 091 528)
he period, attributable	(3 563 120)	(2 091 528)
	(0.78)	(0.55)
	(0.78)	(0.53)

Consolidated Statements of Financial Position

ASSETS

Cash and cash equivalents Financial assets measured at amortized cos Receivables Prepayments Contract acquisition costs Other assets Tax assets Intangible assets, property, plant and equi Participation in the share capital of associati Other securities and investments Total assets

EQUITY AND LIABILITIES

Financial liabilities measured at amortized o Accrued liabilities

Trade payables

Taxes and national social insurance manda

Lease liabilities

Other liabilities

Total liabilities

EQUITY

Share capital

Share options

Share premium

Retained losses

Profit/ (loss) for the period

Total equity TOTAL EQUITY AND LIABILITIES

Data source: internal data

Sept 2024	Sept 2023
Unaudited, EUR Unaudited, EUR

	26 264 705	7 233 346
	61 583	11 663
ed companies	198 450	78 400
pment and right-of-use of assets	6 207 732	1 453 755
	17 005
	171733	82 111
	1 501 587	1 313 664
	155 141	92932
	395 248	27 477
t (incl.loans)	406 251	80 813
	17 149 975	3 848 531

	12 411 866	664 801
	190 636	101 202
	2 119 085	58 535
tory contributions	144 016	85 151
	279 344	67824
	713 173	352 089
cost (deposits)	8 965 612

4 760 549	3 795 407
588 558	487 469
17 463 467	7 094 334
(5 396 615)	(2 717 137)
(3 563 120)	(2 091 528)
13 852 839	6 568 545
26 264 705	7 233 346

23