Mandatum Oyj — Earnings Release 2024

Feb 13, 2025

Mandatum plc's Financial Statements Release 1 January-31 December 2024: A strong year 2024: Mandatum's assets under management rose to EUR 14 billion, record-high net flow close to EUR 1 billion

Mandatum plc's Financial Statements Release 1 January-31 December 2024: A strong year 2024: Mandatum's assets under management rose to EUR 14 billion, record-high net flow close to EUR 1 billion

Mandatum plc, Stock exchange release, 13 February 2025 at 8:30 a.m. EET

October-December 2024 in brief

•          Net flow increased by 86% to EUR 391.5 (10-12/2023: 209.9) million.

•          Fee result grew by 39% to 18.6 (13.4) million.

•          Net finance result was 23.7 (24.9) million.

•          Result related to risk policies decreased to 2.2 (8.0) million.

•          Profit before taxes decreased by 24% to EUR 35.1 (46.3) million. The
decrease from the comparison period was mainly due to updates in actuarial
assumptions and higher interest expenses of Group loans.

•          Earnings per share (EPS) was EUR 0.07 (0.06) and organic capital
generation (OCG) per share was EUR 0.10.

January-December 2024 in brief

•          Client assets under management (AuM) increased by 17% from the
previous year and amounted to EUR 14.0 (31 Dec 2023: 11.9) billion. Net flow
increased by 30% to EUR 983.1 (753.8) million.

•          Fee result increased by 27% to EUR 66.6 (52.6) million.

•          Cost/income ratio related to client AuM2 decreased by 8 p.p. and thus
improved to 58 (66)%.

•          Net finance result was EUR 135.6 (148.6) million.

•          Result related to risk policies was EUR 25.4 (17.9) million.

•          Profit before taxes decreased by 4% to EUR 202.9 (210.4) million.

•          Earnings per share (EPS) was EUR 0.33 (0.32) and organic capital
generation (OCG) per share was EUR 0.44 (0.54).

•          Solvency II ratio was 210.4 (31 Dec 2023: 221.4)%.

Dividend proposal

The Mandatum Board of Directors proposes to pay a dividend of EUR 0.66 per share
for 2024 (2023: 0.33). This consist of a EUR 0.33 dividend per share according
to the dividend policy, as well as an extra dividend of EUR 0.33 per share.
Mandatum's Annual General Meeting will decide on the dividend distribution on 15
May 2025.

Outlook for 2025

•       The fee result is expected to increase from year 2024 provided that the
market environment remains stable. While Mandatum has been able to maintain
disciplined pricing and stable fee margins within capital-light customer
segments during years 2022, 2023 and 2024, the fee result for year 2025 is
dependent on several factors, such as client behaviour and client asset
allocation, competition and capital market conditions.

•          The with-profit portfolio is expected to decrease further. Value
changes of the investments and insurance contract liabilities in the with-profit
portfolio can create relatively high volatility in the net finance result due to
changes in the market environment.

•          In addition, and as typical for the industry, the overall results of
Mandatum will be impacted by actuarial assumptions that are updated from time to
time.

Key figures

EUR million 10-12/ 10-12/ Change, 1-12/2024 1-12/2023 Change, %
2024 2023 %
Fee result 18.6 13.4 39% 66.6 52.6 27%
Net finance result* 23.7 24.9 -5% 135.6 148.6 -9%
Result related to 2.2 8.0 -73% 25.4 17.9 42%
risk policies
Other result -9.4 0.0 n.m. -24.7 -8.7 n.m.
Profit before taxes 35.1 46.3 -24% 202.9 210.4 -4%
for the period

Earnings per share, 0.07 0.06 12% 0.33 0.32 3%
EUR
Equity per share, EUR - - - 3.19 3.19 0%
Net flow 391.5 209.9 86% 983.1 753.8 30%
Organic capital 0.10 n.a. n.a. 0.44 0.54 -19%
generation per share,
EUR
Return on equity-%1 8.3% 7.1% 1.2 10.3% 9.8% 0.5 p.p.
p.p.
Cost/Income ratio - - - 58% 66% -8 p.p.
related to client
AuM, %2

EUR million 31 Dec 2024 31 Dec 2023 Change, %
Client assets under management (AuM) 13,957 11,892 17%
Solvency ratio, % 210.4% 221.4% -11.0 p.p.

1)      Annualised

2)      Trailing twelve months

* Mandatum has changed the Finnish terminology used in its financial reporting.
The Finnish translation of the net finance result will be changed from
'sijoitustoiminnan tulos' to 'nettorahoitustulos'. The corresponding English
term remains unchanged. The purpose of this change is to harmonise the term with
the English equivalent and to clarify the distinction between the investment
return and the net finance result.

CEO's comment

I am pleased with Mandatum's performance in 2024. Profit before taxes, EUR 203
million, was close to the previous year's level, while the fee result, which is
key to Mandatum's strategy, rose 27 per cent from the previous year to EUR 67
million. The Group's client assets under management grew 17 per cent to EUR 14
billion. In addition, we achieved an annual net flow of close to a billion
euros. It is an achievement that I am particularly proud of considering the
current market situation. We also clearly exceeded our 5 per cent net flow
target: the net flow for the year was more than 8 per cent of our assets under
management.

Continuous growth in fee income-generating institutional and private wealth
management as well as pension, savings and risk insurance products is one of our
key goals, and we succeeded in this beyond our expectations last year. The
relative share of the Group's result from Institutional and wealth management,
Corporate and Retail businesses increased from 30 per cent in 2023 already to 43
per cent. Assets under management grew the most in Institutional and wealth
management and particularly among international clients, which testifies not
only to huge market potential, but also to the appeal of our investment products
abroad. Our award-winning fixed income and credit products, such as the Nordic
High Yield Fund, which invests in corporate bonds with higher return
expectations, and senior loan and private debt products, are good examples of
leading industry expertise, which is in high demand also abroad. International
institutional assets under management grew last year by as much as 67 per cent
and we succeeded in acquiring the first clients also outside the Nordics, in
Central Europe. In private wealth management, net subscriptions to allocation
products, in particular, grew in line with our expectations. Also, the income
from Mandatum Trader online trading service and number of users continued to
grow. We have succeeded in increasing the market share in all of the client
segments of the Institutional and wealth management business area.

Also the Corporate and Retail clients businesses performed well last year. We
continue to be the clear market leader in corporate supplementary pension
products and personnel funds, and we hold a strong position also in risk life
insurance. In the big picture, Finns are still underinsured and only just waking
up to the current situation: It is wise - if not imperative - to prepare
personally for retirement well ahead of time, if you are unwilling to compromise
your standard of living when you retire. Remuneration, on the other hand, is an
effective means for companies to motivate and show appreciation for key
personnel, and a clear advantage in the competition for the best talents. In the
Retail clients business, the past year was game changing, as the good
collaboration with Danske Bank began to bear fruit. Investment sales grew
clearly and more loan insurance policies were sold than in the previous year.

Clear improvement in the cost/income ratio

Mandatum set several longer-term financial targets in connection with its
listing. These included disciplined pricing, a declining cost/income ratio,
active contraction of the with-profit portfolio and an annual net flow of more
than 5 per cent of assets under management. We achieved each of these targets in
2024. Especially our cost/income ratio, which declined by 8 percentage points
from the comparison year, is clear proof of the scalability of our business: our
income is growing clearly faster than our costs. Furthermore, Mandatum is still
a highly capitalised company and our solvency ratio of 210 per cent is above the
170-200 per cent target. Since Mandatum's business developed excellently during
2024, and it soon has been almost two years since the listing, we will re
-evaluate our longer-term financial targets in connection with our Capital
Markets Day arranged in June.

We wish to be an attractive dividend payer to our more than 200,000
shareholders. A good investment result with moderate risk and profitable growth
in capital-light business, together with the capital released from the with
-profit business, lay a solid foundation for an attractive dividend flow. As our
liquidity position and dividend payment ability developed better than we
expected last year, Mandatum's Board of Directors has decided to propose to the
Annual General Meeting an extra dividend of EUR 0.33 per share in addition to
the EUR 0.33 per share based on our dividend policy for 2024. This translates to
a total dividend payout of EUR 0.66 per share for 2024.

The core of our growth strategy, the Institutional and wealth management
business, ranked as the top institutional asset manager in the category of large
companies among more than a hundred Finnish institutional investors in SFR
Research's survey at the end of the year. At the same time, the Net Promoter
Score (NPS) for all client groups for the past year was 78.5, a figure that
stands up to the most demanding comparisons. Mandatum has also performed very
well in recent Sustainalytics, MSCI and ISS sustainability ratings. We are now
in the low ESG risk category in the latest Sustainalytics ESG rating. Among
companies in its own industry, Mandatum's result ranks among the top two per
cent.

Success in the various indicators is proof of our clients' confidence in us and
of Mandatum's exceptionally competent personnel. I would like to offer my
sincerest thanks to both our clients and everyone at Mandatum for another
successful year. Our ambitious work has enabled us to make Mandatum a global
player, whose strong expertise produces results.

Petri Niemisvirta
Chief Executive Officer

Conference call 13 February 2025 at 11:00 EET, Finnish time

A conference call in English for analysts and investors is scheduled for 13
February 2025 at 11.00 a.m. (EET, Finnish time). You can register for the
conference call using the link provided below. The phone numbers for the
conference call and the associated code will be provided upon registration.

Registration for the event: https://palvelu.flik.fi/teleconference/?id=50051451.

The conference call can be followed live on the internet at
www.mandatum.fi/en/result (https://www.mandatum.fi/en/group/investors/quarterly
-reporting-and-presentations/). A recording of the call will be made available
for later access at the same web address.

Additional information:
Investors
Matti Ahokas
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 0221 027
lotta.borgstrom(a)mandatum.fi
Media
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi

The Financial Statement Release can be found as an attachment to this stock
exchange release. The supplementary presentation material for investors
accompanying the Mandatum Financial Statement Release is available at
www.mandatum.fi/en/result (https://www.mandatum.fi/en/group/investors/quarterly
-reporting-and-presentations/).

Mandatum plc will publish its Q1 Interim Report on 8 May 2025, Half-year
Financial Report on 14 August 2025 and Q3 Interim Report on 11 November 2025.

Mandatum in brief
Mandatum is a major financial services provider that combines expertise in
wealth management and life insurance. Mandatum offers clients a wide array of
services covering asset and wealth management, savings and investment,
compensation and rewards as well as pension plans and personal risk insurance.
Mandatum offers services to corporate, retail, institutional and wealth
management clients. At the centre of Mandatum's success are highly skilled
personnel, a strong brand as well as a proven investment track record.
mandatum.fi/en/group (https://www.mandatum.fi/en/group/investors/)

Distribution:

Nasdaq Helsinki
Principal media
Financial Supervisory Authority
www.mandatum.fi

Attachments: