NLB — Investor Presentation 2024

May 10, 2024

NLB Group Strategy 2030

Our ambition & guardrails

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Our Strategy 2030 The leading bank in SEE, delivering against international best-practices across customer and operating model

Our Strategy 2030: The leading bank in SEE – delivering against international best-practices across customer and operating model

Leveled up customer proposition

• Reset for digital distribution (mobile as core channel with optimized branches)
• Roll-out of the full NLB playbook across the region
• Strategic bets on bancassurance, housing, loyalty, cash transition, digital trade and transition finance

Upgraded NLB platform

• Scalable processes (E2E simplification and digitalization)
• Scalable risk capabilities (e.g., STP)
• Scalable Technology (architecture, upgraded data platform, GenAI-use)
• Focus on talent base

Group Tech Mission: Scalable tech foundation providing digital-first operating model

invest 170-200 EURm in our technology stack over the next 5 years

Our Strategy 2030: This implies a step change in performance across key dimensions

			Impact ambition towards
Strategic ambition			Today	2030
	Profitably scale across the SEE region	Recurring revenues, in EURbn	1.1bn	>2bn
		Recurring profits, in EURbn	0.5bn	>1bn
		CIR, in %	46%	<45%
		RoE, in %	21%	>15% (1-2 pp. upside from strategic plays)
		Normalized RoE, in %	29%	>20%
	Delivery excellent returns to our shareholders	RTSR, in %		> Banking peergroup1
		Payout ratio, in %	~40%	towards 50-60%
		P/B	0.8x	>1
	Safeguard NLB and the financial welfare of the broader economy	Tier 1 capital ratio, in %	16.9%	~15%
		CET1 ratio	16.4%	>13%
		Cost of Risk	-7 bps	30-50 bps
	Excite our customers and employees	NPS	11-35	>50 Market leader
		Employee engagement (eNPS)	30	>50 Market leader

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Segment narratives

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Group Retail Mission: #1 leading Retail franchise in the SEE region

Key achievements to date

• Strong client franchise building on >2.7m clients across the region
• Clear market leader in SLO with 700k+ clients
• Growth ahead of market (8%+ rev. CAGR) with strong income diversification (~30% fee contribution)
• Leading breadth of product offering (investments, banc-assurance, leasing, payments, etc.)
• Digital transition key driver of growth/CX (e.g., KLIK)

1.3bn+ EUR

in revenues (9%+ CAGR)

>400 EUR

revenue per active client (vs. 270 EUR in 2023)

80%+ Digital penetration %

Group Retail Reach >1.3bn EUR in revenues focusing on the core and two strategic plays

NLB Group Retail revenue, 2023-30, EUR mn

Notes: 1. across housing, mobility, investments and insurance

Group Retail Our focus will be on eight strategic initiatives

Strategic plays	1. Housing eco-system (Regional) green housing retrofit ecosystem	2. Bancassurance Cross-regional proposition; selected value chain insourcing in Life
Within core	3. Consumer Finance Cross-regional, standardized consumer finance platform & product innovation in micro-lending	4. Mortgages Standardized mortgage platform (processes, pricing, etc.)
growth	5. Affluent (incl. PB) scale-up Differentiated Mass affluent proposition (e.g., leveraging Skladi); PB scale-up in Slovenia and Serbia	6. Micro segment scale-up New Micro proposition (transaction-based UW, differentiated pricing & servicing)
Operating platform	7. Branch of the future New branch concepts, higher productivity & shift towards advise model	8. Digital enablement & sales Competitive mobile solution on par with (int.) CX leaders, Market-differentiated digital marketing & sales
		Joint "one-bank" strategic priorities incl. Investments (NLB Skladi), Mobility (NLB Lease&Go), and Loyalty (Payments)

Group Retail This will drive a change across key dimensions

Strategic ambition Double down on scale and customer monetization Deliver market differentiating customer experience Run a "future-proof" and cost effective digital-first bank Impact ambition towards… Today 2030 Digital penetration (active) 39-60% >80% Digital core product sales penetration 2-6% >50% Mobile app rating 4.4 >4.5 NPS 11-47 >50 Digital acquisition <1% >30% STP for consumer finance 47% >90% Retail clients (incl. micro) >2.7 million >3 million Revenue per active client 270 >400 Net growth of customer base <1% 1-2%

Group CIB Real GDP in the region is growing faster than EU, Corporate debt levels continue to converge

Real GDP growth, in %

Corporates debt as % of GDP, in %

Implications

SEE Economies projected to grow Real GDP faster vs. EU by 2030 (1-3 p.p. above EU)

Higher momentum growth of GDP vs. EU countries, together with large planned investments in Transition financing to propel our region to converge towards EU average

Group CIB Mission: Become the #1 CIB franchise in the SEE region

Key achievements to date Strategic goals until 2030 ▪ Strong CIB franchise across the region ▪ Prudent and profitable book building (low NPL ratio, ~24% RoRAC) ▪ Regional ESG front-runner (330mn EUR green bond issued) ▪ Clear market leader in SLO with ~26% loan market share ▪ Full depth CIB playbook (incl. trade finance, corporate finance and custody) Position as #1 SME bank in the region and market leader in transition finance Profitable growth across markets with close control of risk (CoR < 50bps) Innovative e2e operating model with digitized and streamlined processes 3.2bn EUR new transition finance volume in 2030 <45% Segment cost-income-ratio 100% Digital onboarding for SMEs (happy case) 500m+ EUR in revenues (~8% CAGR)

Group CIB Reach >500m EUR in revenues focusing on the core and two strategic plays

NLB revenue market share

'Strategic plays'

'Within core growth'

"Momentum case"

CAGR

2

1

markets and high growth products (esp. Serbia)

(beyond-banking)

'Attacking' 2 big strategic plays

Expand NLBs position across

Grow with the market at ~5%

NLB Group CIB revenue, 2023-30, EUR mn

Group CIB We will focus on six strategic initiatives

Strategic plays

1. (Off-balance sheet) transition financing 2. Acceleration on Trade Finance

Premier partner for transition finance, incl. offbalance-sheet financing and advisory capability

First cross-regional TF platform, build around an excellent UX/value-added services

Within core growth (BU initiatives)

3. Investment banking 4. SME strategy

Roll out of playbook across the region (e.g., brokerage, bonds issuance/trading, M&A/corporate finance)

New digital SME proposition and dedicated Serbia scale-up

Operating platform

Competitive digital and mobile solutions (incl. value-added services) 5. Acceleration on digital capabilities 6. Front office excellence

Step-up in RM productivity with focus on eliminating non-advisory/sales tasks

Group CIB This will drive a change across key dimensions

Double down on scale and customer monetization Deliver market differentiating customer experience Establish as the Transition finance leader in the region Strategic ambition Impact ambition towards… Today Total CIB stock loan volume 6 EURbn >12 EURbn CIB Green financing stock volume 5-15 days NPS 33 >50 Time to decision on financing Fast tracl for std. SME financing 3-10 days <2 days Revenue per active client 12.5k 20k Share of fee income 27% >37% Cross-sell ratio 3.2 4.0 2030 Time to onboard new clients For std. clients <1 day 0.3 EURbn >1.3 EURbn Targets set Dec. 2023 Power: 0.165 Steel: 0.600 CRE: >30% Reaching interim NZBA targets Current targets in: Power (kg co2e/Mwh), Steel (kg co2e/t), CRE (share in new financing of buildings <50kg Co2/m2)

Group Payments Given European market trends, we assume a significant decline of cash usage across NLB markets

Notes: 1. Includes Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the UK

Group Payments

Mission: Become the core payment platform and innovator for the SEE region

Key achievements to date Strategic goals until 2030

Payments established as a core capability for the Group

220m+ EUR in fee income

connected to accounts, packages, cards and payments in FY 2023

NLB Pay (4.5/5 customer reviews¹ ) rolled-out across markets

Regional front-runner for instant pay, Apple Pay, Google Pay, merchant acquiring and other digital payments innovations

Driver of innovation and client momentum

Roll-out payments innovations across the group and increase customer stickiness

Focus on digital payments and merchant solutions

Shape the cash transition -

increasing financial inclusion and combating the shadow economy

100m+ EUR

Incremental revenue by 2030

>80% mobile active by 2030

Group Payments Generate >100m EUR add. revenue from core innovations and 2 strategic plays

NLB Group Payments revenue, 2023-30, EUR mn

Group Payments Our focus will be on six strategic initiatives

Strategic plays

Within core growth (BU initiatives)

3. Merchant acquiring 4. Issuance

branches) and the operating model

NextGen services for merchant offering (driving technological advances) focusing also on partnership models

Encourage use of digital payments and alternatives, while optimizing the use of cash transactions (for example in

1. Cash transition 2. Customer stickiness

further externally

Evolve and innovate value proposition in cards, wallets/NLB Pay and beyond along segment-specific needs to increase revenue per user

New Group-wide loyalty solution, incentivizing digital migration and customer steering, potentially expanding

Operating platform

5. Digital operating platform 6. Partnerships

Competitive platform (e.g., NLB Pay) with breadth of offerings aggregating and enabling all strategic initiatives, built on the foundations of group-wide collaboration and synergies

Build up and evolve broader universe across technology, sales & distributions and value-added services for merchant acquiring, issuing and loyalty

Group Payments This will drive a change across dimensions

		Impact ambition towards…
Strategic ambition	Today	2030
Scale the Payments capability across NLB Group	Revenue contribution to the group	220m	>320m
Deliver a market differentiating customer experience	Digital penetration (Retail clients)	25-60%	>80%
	Mobile wallet rating (NLB Pay)	4.5	>=4.5
Drive the future of payments in the region	# of partners in payments	5	>20
	Penetration of mobile wallet	10-15%	>40%
	% of digitized card transactions	2.5%	>25%
	% of cash transactions in branches (Retail)	32%	<10%