INDEXO — Investor Presentation 2024

Aug 7, 2024

INDEXO Webinar on H1 2024 consolidated financial results

Valdis Siksnis AS INDEXO Banka Chairman of the Board

lvita Asare AS INDEXO Banka Chief Financial Officer

August 7, 2024

Henrik Karmo IPAS INDEXO Chairman of the Board

Another great quarter for INDEXO Group making INDEXO one of the fastest growing pension fund manager in the Baltic countries

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 received a license from the ECB on May 15, joined SWIFT and SEPA, VISA card transactions are live

*as of June 28, 2024

Almost 6 000 shareholders* allowing everyone to be a part of INDEXO's growth story

Key H1 2024 Highlights

154.6K

Net Profit

INDEXO keeps growing quickly

Our Assets Under Management (AUM) have grown by more than 50% and exceeded 1bn EUR, as well our revenues keep growing quickly

Data source: quarterly reports, internal data

INDEXO

Commission income Jan - Jun 2023

Commission income Jan – Jun 2024

Key metrics in 5 years have grown significantly

Period	Clients	AUM	Revenue	Net Profit
H1 2019	22,848	125.3M	232,035	-302.74K
HT 2024	134,734	1150.3M	2,015,460	154.63K
	5.9X	9.2X	8.7X	3.0X

Pension business has been profitable for the last four quarters

355

Data source: quarterly reports, internal data

lmpressive growth of AUM and Clients

INDEXO

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

INDEXO is the most popular choice switching 2nd pillar manager

Data source: manapensija.lv

INDEXO

Change in 2nd Pillar AUM Jan-Jun 2024, Mn EUR

INDEXO is the 3rd largest pension manager in Latvia (as of 30 June, 2024)

Manager ● Swedbank ● SEB ● INDEXO ● Citadele ● Luminor ● Other

Our business growth in 2nd pillar can be 2nd Pillar pension AUM growth drivers Q2 2023 - Q2 2024 attributed to growing Millions EUR monthly contributions 170 -187 and new customers 105 (79) 739 joining INDEXO

Q2 2023

Data source: manapensija.lv data, internal data

Our business growth in 2nd pillar can be attributed to growing monthly contributions			2nd Pillar pension Millions EUR
	and new customers			105
	joining INDEXO		739
	From: 7.4 million euro in June 2023

To: 9.5 million euro in June 2024

28% increase

Q2 2023

contributions

INDEXO

AUM growth drivers Q2 2023 - Q2 2024

Our flagship 100% equity plan Jauda has been outperforming the market since its inception

Data source: manapensija.lv data, Central Statistical Bureau of Latvia

INDEXO

Our customer loyalty is strong, but the retention rate is slightly affected by increased churn

I his is a result of higher activity by our competitors as the churn figures have increased for the whole market since 2023. We have taken notice and are taking measures which we hope will improve the situation

INDEXO

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

Manager	Yearly Change of	% change	10 000
	AUM per client, EUR		9 000
			8 000
INDEXO	2 123	29.3%	7 000
Competitor 2	649	11.1%	6 000
Competitor 3	1 319	30.7%	5 000
Competitor 4	918	28.7%	4 000
			3 000
Competitor 5	1 307	24.9%	2 000
Competitor 6	1125	23.9%	1 000
Competitor 7	711	19.6%	O

Data source: manapensija.lv data, VSAA

Our 3rd pillar pension is also growing

INDEXO Data source: manapensija.lv data, internal data

Clients with regular contributions*

70.6%

vs 63.7% On June 30, 2023

* Clients that make a contribution to their 3rd pillar pension at least once a quarter

INDEXO keeps investing in future growth by acquiring new clients

INDEXO Pension business re

Commission income

Interest income/(expense)

Administrative and other exper management

Operating income before clic other business project exper

Client acquisitions costs

Pension management operat

Non-cash personnel option ex

Corporate income tax

Comprehensive profit/ (losse period

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

sults, EUR	an-Jun 2024 Unaudited, EUR	Jan-Jun 2023 Unaudited, EUR
	2 015 460	1386024
	(210 548)*	7 194
nses for pension	(637 653)	(633 421)
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	1167 259	759 797
	(863 266)	(916 122)
ting result	303 993	(156 325)
penses	(146 399)	(230 576)
	(2 962)	(1 680)
es) for the reporting	154632	(388 581)

INDEXO Bank is ready to start banking market disruption in August!

Perfect time to enter the market

Addressable oligopolistic market of 622 million banking profits in 2023 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

The end of a low interest rate era

INDEXO well positioned to disrupt the market

Large, fast growing highquality customer base

• INDEXO has more than 134 thousand high-quality customer base and with a 53 % higher AUM per client compared to the market average.
• Current sales channels, which are generating around 2 thousand new pension customers per month, will also be used to sell banking products

Well recognized and positively perceived brand

According to a market survey* approximately 200-250 thousand people in Latvia are already open to start using INDEXO's statefunded pension scheme services

*Survey on Pension Funds and INDEXO brand position. Survey was made by Dentsu Data Labs, on the behalf of INDEXO. January 2024.

Building best-in-class IT infrastructure

• · A cloud native IT infrastructure is being built, that enables agile product development
• · Competition's mobile offering is weak, INDEXO can excel
• · No need to "struggle" with legacy systems

We are launching the bank with daily banking products INDEXO app will raise the standards for mobile banking in Latvia

Simple for everyday user, customizable for power users

20

INDEXO Bank is building its "muscles" to get ready for the bank's launch

INDEXO Bank Profit and Loss Stateme

Interest income calculated using the effe

Interest expense

Commission and fee income

Commission and fee expense

Net foreign exchange 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 - Jun 2024 Unaudited, EUR
ctive interest rate	110611
	(79 964)
	9
	(7 519)
	(154)
	(80 745)
	(1 970 244)
	(745 462)
	(82 618)
	(2 110 624)
	(373)
	(2 110 997)

INDEXO Bank continues to make significant IT investments

INDEXO Bank Balance sheet, EUR

ASSETS

Other demand deposits at central banks Due on demand from credit institutions Property, plant and equipment and righ 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

Data source: internal data

Jun 2024 Unaudited, EUR

	7 049 499
	20 437
t-of-use of assets	2 135 293
	3 117 833
	440 249
	12 763 311

ed cost
	209 541
	100 623
	2 234 173
	2 544 348

6 3 218 9
ನ ರ ನ 3 218 96
76 311 3

The INDEXO Bank has built adequate capital base to support the initial business development

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

Capital ratios and minimum requirements as of June 2024

*- Capital adequacy ratio

Data source: internal data

Experience the historical event -INDEXO Bank launch

Consolidated Statement of Comprehensive Income

Commission and fee income

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

г

Data source: internal data

		Jan – Jun 2024
		Unaudited, EUR Unaudited, EUR
	2 015 469	1386025
g the effective interest rate	134 632	9 052
	(3 741 751)	(2 804 194)
	(314 534)	(1 197)
	(45 441)	(23 323)
	(1 405)
tax	(1 953 030)	(1 433 637)
	(3 335)	(2 298)
	(1 956 365)	(1 435 935)
he period, attributable	(1 956 365)	(1 435 935)
	(0.43)	(0.40)
	(0.43)	(0.38)

Consolidated Statements of Financial Position

ASSETS

Cash and cash equivalents

Receivables

Prepayments

Contract acquisition costs

Other assets

Loans to subsidiaries and associates

Intangible assets, property, plant and equi

Participation in the share capital of associati

Other securities and investments

TOTAL ASSETS

EQUITY AND LIABILITIES

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

	Jun 2024	Jun 2023
	Unaudited, EUR Unaudited, EUR
	8 189 291	4 959 431
	336982	254 132
	277 740	126 645
	1 464 585	1 203 972
	211 197	5 001
	99 076	69 961
pment and right-of-use of assets	5 348 567	990 659
ted companies	159 250	58 000
	61 583	11 663
	16 148 271	7 680 264
	469 626	234 437
	215 317	100 586
tory contributions	120 500	125 627
	2 063 401	69 257
	130 763	264 472
	2 999 607	794 379
	4 589 479	3 568 511
	525 453	407 536
	15 386 712	7 062 908
	(5 396 615)	(2 717 135)
	(1 956 365)	(1 435 935)
	13 148 664	6 885 885
	16 148 271	7 680 264