Nordnet AB · OMXSTO:SAVE
Nordnet AB — Investor Presentation (January 2023)
107 slides from Nordnet AB's investor presentation, January 2023
Slide 1: Company presentation January 2023
Company presentation January 2023
Slide 2: Introduction to Nordnet
Introduction to Nordnet 2
Slide 3: This is Nordnet
This is Nordnet We exist to democratise savings and investments 715bn 1.7m 56m Savings capital Active customers in On-exchange trades SEK as of Dec. 2022 4 Nordic countries as of Dec. 2022 in 2022 3
Slide 4: Pan-Nordic powerhouse
Pan-Nordic powerhouse #1 Nordic broker #1 domestic broker on Nordic exchanges 2022 Total turnover on Nordic exchanges 2022 (SEKbn) 1 400 1 200 2022 2021 2020 1 000 NPS position in Nordics #1 #1 NPS position vs key competitors with #1 rank in DK, FI, NO; #2 in SE 800 600 400 200 #1 Market share in No
Slide 5: #1 choice for Nordic savers and investors
ASPIRATION #1 choice for Nordic savers and investors “The Nordic’s most satisfied customers enabled by a state- of-the-art platform for all their savings and investment needs.”
Slide 6: Building the best platform for savings and investments
BRAND PROMISE Building the best platform for savings and investments “Through leading UX, cutting-edge financial products, automated and inspiring customer journeys as well as tools for informed decisions, we are building the best platform for savings and investments – enabling higher returns.” 6
Slide 7: Clear strategic focus
Clear strategic focus SAVINGS AND NORDIC DIGITAL INDIVIDUALS INVESTMENTS REGION DISTRIBUTION 7
Slide 8: Nordnet caters to three distinct customer groups
Nordnet caters to three distinct customer groups Share of December 2022 savings capital1 (%) ▪ Grow within Saver Savers “Do it segment to become #1 (49%) for me” choice for savers by focus on funds, pension and ease of use Investors “Help me (44%) do it” ▪ Maintain dominance within Investor segment
Slide 9: One-stop shop for savings and investments
One-stop shop for savings and investments Securities brokerage ✓ ✓ ✓ ✓ Shares, bonds, warrants, options, futures, ETFs, ETPs, certificates Funds ✓ ✓ ✓ ✓ >2,000 mutual funds, index funds, hedge funds, fund-of- funds as well as fund guidance and advisory Pension ✓ ✓ ✓ Stock lending, endowment insuranc
Slide 10: Best in class user experience in our channels
Best in class user experience in our channels NEXT web application New Nordnet app Shareville NEXT released in 2019 New app released 2H 2018 Social investment community
Slide 11: We have worked hard to perfect our digital platform since 1996
We have worked hard to perfect our digital platform for savings and investments since 1996 2001: Listing on the 2017: Take-private by Öhman 1996: Birth of Nordnet 2020: Re-listing Stockholm Stock Exchange and Nordic Capital Start-up phase – Geographic and Transformation Capture growth pioneer in onl
Slide 12: Nordnet is taking market share in a growing market
Nordnet is taking market share in a growing market Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size current Market size extended Nordnet’s share of addres
Slide 13: Nordnet has six main revenue growth drivers
Nordnet has six main revenue growth drivers New customer Revenue1 growth SEKm New net savings 3,639 3,382 Savings 2,689 capital growth 1,524 Product penetration 2019 2020 2021 2022 New product launches Opportunistic (1) Adjusted revenue (SEK), subtracting SEK66m in 2019 13 M&A
Slide 14: Only pan-Nordic digital savings and investment platform at scale
Only pan-Nordic digital savings and investment platform at scale Sweden is still the largest market… …but other Nordic countries are …and at good margins growing faster… Nordnet’s 2022 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)2 SEKm Dec 21 Dec 22
Slide 15: Strong long-term growth in customers and savings capital
Strong long-term growth in customers and savings capital Customers Savings capital Thousands SEKbn 1,708 802 1,601 715 1,221 565 914 395 765 669 567 272 286 490 235 367 395 433 200 314 344 166 193 224 136 128 157 90 102 90 104 86 103 49 55 39 21 36 2010 2018 2007 2011 2005 2020 2008 2022 2017 2004 2
Slide 16: Rigorous focus on cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating exp
Slide 17: Revenue growth together with operating leverage driving significant profit growth
Revenue growth together with operating leverage driving significant profit growth Adjusted revenue1 Adjusted operating expenses1 Adjusted profit before tax1 SEKm SEKm SEKm 3,639 3,382 2,689 2,451 2,115 CAGR +3% 1,524 1,576 1,141 1,210 1,097 1,064 377 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020
Slide 18: Updating medium-term financial targets
Updating medium-term financial targets Previous New target target Customer growth 15% 10-15% Medium term financial targets adjusted to account for new interest rate environment and 2022 stock market performance. Average savings capital/customer1 ~450k ~420k Financial targets assume the following ove
Slide 19: Medium-term financial targets
Medium-term financial targets Target Customer growth Average savings capital per customer2 Dividend payout ratio % SEK (‘000) % 34% 31% 477 444 409 416 Around SEK420k “Deliver superior total returns to per customer shareholders via a pay-out ratio 13% of 70% of statutory net income, 10%1 10-15% p.a.
Slide 20: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 20
Slide 21: Nordnet 2025 strategy
Nordnet 2025 strategy 21
Slide 22: #1 choice for Nordic savers and investors
ASPIRATION #1 choice for Nordic savers and investors “The Nordic’s most satisfied customers enabled by a state- of-the-art platform for all their savings and investment needs.”
Slide 23: Key strategic ambitions
Key strategic ambitions Engaged customers Engaged customers ▪ Building the best platform for savings and investments ▪ #1 NPS & high retention ▪ Upward trend on eNPS Engaged ▪ Attract and retain top employees talent HEADLI Profitable ▪ Capture Nordic growth NE growth potential ▪ Stable cost level ▪
Slide 24: How we will get there
How we will get there 1 “Delightful “One-stop shop 2 digital channels for savings and with leading investments” UX” ngaged ngagedcustomers customers 3 4 ngaged “Full process employees “Data-informed automation H D organisation and ro table and optimisation” N growth personalized CX” Sustainable busi
Slide 25: Channels: Best in class user experience
1 Channels: Best in class user experience “Delightful digital channels with leading UX” Key initiatives NEXT as a financial cockpit and as a consolidator of key customer segment capabilities pp to transition from “control of investments on the go” to “live your financial life in the app” including m
Slide 26: Key selling proposition
1 Key selling proposition Wide Smooth Leading product UX x x customer range journeys enabled by: Real-world x Scalable agile platform
Slide 27: A typical day on the Nordnet platform 2022
1 A typical day on the Nordnet platform 2022 EU market open: ~18k request/s US market open: ~8k request/s EU market close (SE/FI/DE) +40m net fund buys US market close SEK 220k 260k DAU app 110k DAU web trades 60k x-border trades +630 +140m +8m 6.4bn API order operations/s Note: Average 2022 figures
Slide 28: NEXT web application
1 NEXT web application 33% of Nordnet users use only or mainly the web 110k Daily Active Users (DAU) with a 24% DAU/MAU ratio 91k Trades per day representing 46% of daily traded value during 2022 Share of traded value per month 28 Note: 2022 figures
Slide 29: Nordnet app
1 Nordnet app 65% of Nordnet users use only Only web The or mainly the app Nordne t app 260k Daily Active Users (DAU) with a 37% DAU/MAU ratio Only appapp Mainly 65% 65k Mainly Trades per day representing app 28% of daily traded value during 2022 Note: 2022 figures Share of traded value per month
Slide 30: Shareville social investing community
1 Shareville social investing community 300k users have shared their portfolios on Shareville 1.4x Traded value of a Shareville user vs a non-Shareville user1 1.9x Commissions of a Shareville user vs a non-Shareville user1 (1) 2022 figures
Slide 31: Shareville's social investing to form the heart of the Nordnet experience
1 Shareville’s “social investing” to form the heart of the Nordnet experience in both app and web Social investing at heart of user experience Working in tandem with our users 179 Shareville “ambassadors” in beta test community 143 unique insights from user surveys and in-depth interviews 858 datapo
Slide 32: One-stop shop for savings and investments
2 One-stop shop for savings and investments Securities brokerage ✓ ✓ ✓ ✓ Extend lead within securities brokerage Funds ✓ ✓ ✓ ✓ Become as strong within Funds as we are in brokerage Pension ✓ ✓ ✓ ✓ Step-change in growth throughout Nordic markets Margin lending ✓ ✓ ✓ ✓ Boost trading power thru capital-
Slide 33: Automated customer journeys
3 Automated customer journeys Degree of automation Lower Higher Ongoing 2023 Foundation Become a customer Inspire me to save and invest Buy or sell a security Open an account Guide me to start saving Buy or sell a fund Deposit & withdraw money Move my savings How am I doing? Manage my identity Find
Slide 34: Data-informed organisation & personalized experience
4 Data-informed organisation & personalized experience Department Personalized dashboards suggestions Data-informed Personalized decisions content Continuous Personalized Improvements communication 34
Slide 35: A cloud-powered platform
5 A cloud-powered platform What our tech strategy aims to achieve Security Scalability Data Speed Agility 35
Slide 36: Increased leverage from Cloud Technology drives innovation pace
5 Increased leverage from Cloud Technology drives innovation pace 62 Managed services Security 35 Scalability 12 Enables innovation and 1 allows focus on core business 2019 2020 2021 2022 % development on Nordnet X
Slide 37: Scaling up development capacity
5 Scaling up development capacity 51 31 149 45 25 118 33 18 91 2020 2021 2022 2020 2021 2022 2020 2021 2022 FTE FTC #Signed #Development Engineers Teams (EOY) #Engineers
Slide 38: Sustaining Engineering Efficiency
5 Sustaining Engineering Efficiency #Releases #Delivered 13 141 JIRAs 7 564 7 220 7 164 5 525 Automation 3 174 Sunsetting Cloud migration 2020 2021 2022 2020 2021 2022 Team autonomy Release Lead time (min) JIRA Lead time (days) 42 3.1 2.8 2.6 29 27 Drives improvements in all productivity KPIs 2020 2
Slide 39: Availability 2022
5 Availability 2022 The bottom line 99.8% 99.9% 99.9% How large is this improvement? 496 min vs 233 min downtime in 2020 downtime in 2022 4x Traffic 2020 2021 2022 2022 vs 2019
Slide 40: Release cadence
5 1.8 hours Release cadence of web-app NEXT 4 days Release cadence of native app 13,141 Deploys during 2022
Slide 41: Best-in-class people and operating model
6 Best-in-class people and operating model People agenda CULTURE & STRATEGIC SUSTAINABLE EMPLOYER LEADERSHIP DIVERSITY VALUES DIRECTION WORK MODEL BRANDING eNPS Average last 4 quarters +36 +36 +35 +32 +30 +27 +25 +23 +17 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 41
Slide 42: Values well ingrained throughout the organization
6 Values well ingrained throughout the organization Passion Simplicity Transparency Nordnetters lean We believe that easy By telling it like it is forward and walk the to-use products, and being open extra mile to inspire straight to the point externally as well as loyalty and communication and inte
Slide 43: Efficient operating model with clear responsibilities
6 Efficient operating model with clear responsibilities CEO Countries Staff functions Product Sweden Norway Denmark Finland Finance ▪ One product and tech Financial Crime Prevention organization supporting all Nordic Marketing countries Communications & IR ▪ Front-to-back responsibility in Human Res
Slide 44: Sustainability embedded in Nordnet's DNA
7 SG embedded in Nordnet’s DN Democratize savings and investments ▪ Increase the general knowledge about personal finances ▪ Develop user-friendly and inspirational services for saving and investments ▪ Become the leading platform in the Nordics for sustainable savings Equality and diversity ▪ A bet
Slide 45: We focus on education and inspiration to help customers
7 We focus on education and inspiration to help our customers make informed decisions ▪ Nordnet “Stock School” in each of the four countries ▪ Nordnet blog, podcasts and videos – largest educational video platform in the Nordics ▪ Guidance flow – monthly savings from zero to hero in six easy steps ▪
Slide 46: Leading platform for sustainable investments
7 Leading platform for sustainable investments ▪ First to offer screening of mutual funds and ETFs to exclude unwanted holdings ▪ First platform to introduce Article 8 / Article 9 tagging of funds ▪ Rich sustainability dataset for mutual funds and ETFs ▪ Guidance flow for mutual funds can populate a
Slide 47: Strong compliance and risk management
8 Strong compliance and risk management Three lines of defence Board and Executive Management overall responsible Risk Control and Business Line Management Internal Audit Compliance functions First line of defense: Second Line of Defense: Third line of defense: Risk Ownership Control Assurance Owns
Slide 48: Improved risk culture in first line of defense
8 Improved risk culture in first line of defense Tone from the top Proactive engagement with Legal, Risk and Compliance Education and workshops Processes and clarified responsibilities 48
Slide 49: Increased staffing in control functions
8 Increased staffing in control functions Risk Compliance Legal Financial Crime Prevention 69 60 44 44 Staffing in control 39 35 functions more 31 26 than doubled since 18 2018 18 7 7 5 6 9 5 6 6 7 4 9 4 6 6 7 2018 2019 2020 2021 2022 49
Slide 50: Control functions report directly to CEO
8 Control functions report directly to CEO CEO Legal Compliance General Counsel Chief Compliance Officer Financial Crime Risk Control Prevention Chief Risk Officer Chief Financial Crime Prevention Officer Country Tech Product Finance Human Resources Communications organizations CTO CPO CFO CHRO CCO
Slide 51: Deep-dives: Market
Deep-dives: Market 51
Slide 52: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 52
Slide 53: We operate in an attractive market with strong and sustainable growth prospects
We operate in an attractive market with strong and sustainable growth prospects Consistent growth in the Nordic …with Nordnet’s addressable market1 …and digital platforms2 significantly savings market… growing faster… outgrowing the market Savings capital (SEKtln) Savings capital (SEKtln) Savings ca
Slide 54: Digital platforms are taking market share
Digital platforms are taking market share Addressable savings capital Key drivers of switching to a digital SEKtln platform Online platform market share of current addressable savings capital Extended market Nordnet market share Addressable market ✓ Improvement in user ~20.4 experience 3% 6% ~3.1 ✓
Slide 55: Strong growth runway for Nordnet across the Nordics
Strong growth runway for Nordnet across the Nordics… ddressable market size and Nordnet’s market share by country 20211 SEKtln Nordnet market share ~6% ~7% ~5% ~10% ~6% ~2.1x ~1.6 ~13.0 ~3.3 ~2.0 ~6.1 Total addressable market (1) Source: SCB, Svensk Försäkring, SSB, Finans Norge, Nationalbanken Denm
Slide 56: Considerable growth in the addressable market until 2025
…with a considerable growth in the addressable market until 2025 ddressable market size and OT ’s market share by country 20251 SEKtln OTP market share of current market Extended market ~21% ~20% ~10% ~12% ~17% ~2.4x ~2.7 ~20.4 ~6.8 ~0.6 ~3.1 ~2.5 ~2.6 ~17.3 ~8.3 Total addressable market (1) Source:
Slide 57: Nordnet competes primarily with online platforms and incumbent banks
Nordnet competes primarily with online platforms and incumbent banks Sweden Norway Denmark Finland Main digital platforms Continued migration from incumbent banks to digital platforms Main incumbent banks 57
Slide 58: Nordnet is taking market share in a growing market
Nordnet is taking market share in a growing market Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size current Market size extended Nordnet’s share of addres
Slide 59: Only pan-Nordic digital savings and investment platform at scale
Only pan-Nordic digital savings and investment platform at scale Sweden is still the largest market… …but other Nordic countries are …and at good margins growing faster… Nordnet’s 2022 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)2 SEKm Dec 21 Dec 22
Slide 60: Sweden
Sweden Share of total population Addressable market growth outlook1 Market share of addressable market1 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Other OTPs Market size Nordnet market share Nordnet’s share of addressable market 4% 3% 6% 1,800 1,804 1,583 1
Slide 61: Sweden
Sweden Achievements 2022 Customer behavior Social Media up 228% vs 2021 North American Stockmarkets included in Sec Lending 663k savings capital per 2,900 income per 4.1 trades per customer customer (SEK)1 customer (SEK)2 per month3 Rewarded “Bank of the Year” by rivata affärer 52% own shares 45% ow
Slide 62: Norway
Norway Share of total population Addressable market growth outlook2 Market share of addressable market 2 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size Nordnet market share Nordnet’s share of addressable market Extended 2% 7% 1,143 6% ~2.0 5.4 ~1.7
Slide 63: Norway
Norway Achievements 2022 Customer behavior Successful launch of Private Banking mortgage 67 % of all new shareholders are Nordnet customers 366k savings capital per 2,500 income per 3.0 trades per customer customer (SEK)1 customer (SEK)2 per month3 #1 domestic broker Oslo børs 70% own shares 38% own
Slide 64: Denmark
Denmark Share of total population Addressable market growth outlook3 Market share of addressable market3 December 2021 | Million Savings capital, SEKtln December 2021, SEK bn Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share Extended
Slide 65: Denmark
Denmark Achievements 2022 Customer behavior Continued strong customer inflow and net savings Successful launch of Nordnet One 469k savings capital per 1,800 income per 2.5 trades per customer customer (SEK)1 customer (SEK)2 per month3 29% market share in DASK after 1 year+ 78% own shares 43% own fun
Slide 66: Finland
Finland Share of total population Addressable market growth outlook2 December 2021 | Million Savings capital, SEKtln Nordnet’s share Market size current Market size extended Nordnet’s share of addressable market Nordnet market share Extended market 5% 10% 895 9% ~2.7 ~0.6 5.6 402 440 293 ~2.1 ~1.6 ~
Slide 67: Finland
Finland Achievements 2022 Customer behavior #1 market share in FASK (69 %) accounts #1 retail broker in trades on Nasdaq Helsinki 2022 288k savings capital per 1,200 income per 1.9 trades per customer customer (SEK)1 customer (SEK)2 per month3 Successful launch of Nordnet One and MFA 67% own shares
Slide 68: We have been building our competitive moat for more than two decades
We have been building our competitive moat for more than two decades Operating in all four Nordic markets with… Local Fully Strong and presence Operating licensed trusted with at scale and brand localized regulated offerings eading customer proposition based on… One stop Leading shop for Product Com
Slide 69: Deep-dives: Growth
Deep-dives: Growth 69
Slide 70: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 70
Slide 71: Nordnet has six main revenue growth drivers
Nordnet has six main revenue growth drivers New customer Revenue1 growth SEKm New net savings 3,639 3,382 Savings 2,689 capital growth 1,524 Product penetration 2019 2020 2021 2022 New product launches Opportunistic (1) Adjusted revenue (SEK), subtracting SEK66m in 2019 71 M&A
Slide 72: Continued long-term growth in customers and savings capital
Continued long-term growth in customers and savings capital Customers Savings capital ‘000 SEKbn Customers New customers Savings capital (LHS) Net savings (RHS) 1,708 802 1,601 715 1,221 565 914 395 82 83 765 +379 669 +308 567 272 286 490 235 395 433 200 344 367 2 166 +159 36 +148 136 +103 90 104 23
Slide 73: Pandemic-era customers are younger, higher share of women and own more funds
Pandemic-era customers are younger, higher share of women and own more funds Share of customers per cohort and age1 Share of customers by cohort and gender2 % (‘000) 2 1 681 855 309 366 152 2019 and older 2020 2021 2022 9% 3% 2% 2% 3% 2022 4,5% 29% 4,0% 22% 2021 34% 36% 38% 3,5% 3,0% 2020 18% 2,5% 2
Slide 74: Pandemic-era customers remain active, grow net savings and drive high margins
Pandemic-era customers remain active, grow net savings and drive high margins Revenue margin 2022 Share of cross-border trades 2022 bps % | million trades 81 41.7 6.1 6.1 2.4 56.2 25% 30% 25% 26% Cross-border 35% 51 55 46 42 Pre 2020 2020 2021 2022 All Pre 2020 2020 2021 2022 All Share of trades per
Slide 75: Embedded growth in Nordnet's existing customer base
mbedded growth in Nordnet’s existing customer base as younger customers accumulate and inherit wealth Strong future growth outlook Distribution of Nordnet’s savings capital and number of customers by age1 Average AUM (SEK, RHS) Share of total customers (%, LHS) 2 Share of new customers (%, LHS) 5% 1
Slide 76: One-stop shop for savings and investments
One-stop shop for savings and investments “Feature complete one-stop-shop in all Nordic markets” Securities brokerage ✓ ✓ ✓ ✓ Extend lead within securities brokerage Funds ✓ ✓ ✓ ✓ Become as strong within Funds as we are in brokerage Pension ✓ ✓ ✓ ✓ Step-change in growth throughout Nordic markets Mar
Slide 77: This is Securities Brokerage
Securities Funds Pension Credit Brokerage This is Securities Brokerage Fully integrated Securities business: Corporate Business ▪ Shares, bonds, warrants, options, futures, Actions Development certificates, stock lending and margin lending IPOs, AGM/EGMs, Exchange Traded Products, dividends, splits,
Slide 78: Leading securities brokerage offering
Securities Funds Pension Credit brokerage Leading securities brokerage offering Brokerage capital development Customer behavior1 SEKbn ~900k 1.6 trn Sweden Norway Denmark Finland customers made a trade In traded value | SEK 22% 573 123 490 404 28% 116 89 132 2.8 trades 26% 268 125 24% 92 81 64 76 60
Slide 79: Share of trading customers at long-term average levels
Securities Funds Pension Credit brokerage Share of trading customers at long-term average levels with higher interest in cross-border trading Trading customers Trades per trading customer / quarter 100% Share of all customers Number of trading customers 700,000 50 Average 2017-2022 40 90% 600,000 30
Slide 80: Trading pattern affected by unprecedented macro uncertainty
Securities Funds Pension Credit brokerage Trading pattern affected by unprecedented macro uncertainty Trades per customer per trading day Index development1 % | indexed SE NO DK FI 0.34 2018-2019 2020 2021 2022 10% YTD development: 0.32 5% 0.30 0% -1% 0.28 0.26 -5% -6% 0.24 -10% 0.22 -15% -16% 0.20
Slide 81: Trades per day have doubled since 2019
Securities Funds Pension Credit brokerage Trades per day have doubled since 2019 and each trade drives more revenue Trades per customer per trading day Total number of trades and net income/trade Trades per cust / day (LHS) Trades per day Cross border (m) Domestic (m) Net income / trade (SEK) 0.34 2
Slide 82: Case study: Crypto-related instruments
Securities Funds Pension Credit brokerage Case study: Crypto-related instruments Focus on education and ensuring customers understand products and risks ~1% of Nordnet customers Nordnet provides access to crypto-backed hold crypto-related assets ETNs/ETCs on regulated trading venues No wallets or “p
Slide 83: This is Mutual Funds
Securities Funds Pension Credit brokerage This is Mutual Funds Fully integrated Funds business: Fund Savings Open fund platform ▪ >2,000 mutual funds, including index funds, and guidance flows hedge funds and multi-asset funds ▪ Best in class screening tools and guidance ▪ Fully scalable digital pla
Slide 84: Leading Nordic fund supermarket
Securities Funds Pension Credit brokerage Leading Nordic fund supermarket Fund capital Customer behavior2 SEKbn Sweden Norway Denmark Finland 154 15 144 o/w 21% pension1 38% 144bn AuM in funds SEK 32bn in Nordnet funds SEK 16 24 100 24 33% 186k 45% 81 8 39 14 36 6 10 23 28% 18 48 55 76 67 12% Avg fu
Slide 85: This is Pension
Securities Funds Pension Credit brokerage This is Pension Wholly-owned pensions group: ▪ Complete pension solutions in Sweden for both private individuals and employers, with additional offerings in Norway and Denmark ▪ Private pension savings and individual pensions savings products offered in Swed
Slide 86: Pension offering to benefit from continued deregulation
Securities Funds Pension Credit brokerage Pension offering to benefit from continued deregulation Pension capital Customer behavior1 SEKbn Sweden Norway Denmark 255k 595k o/w 56% endowment insurance 184.5 29.3 151.9 Customers Avg AuM per pension 20% 126.7 20.2 28.6 customer ~22% 21.3 19.0 +8.2bn 89.
Slide 87: Opportunity to grow in the pension market
Securities Funds Pension Credit brokerage Opportunity to grow in the pension market Nordnet’s share of addressable market1 Key focus areas (SEKtln) ▪ Enhance process for transferring pension capital to Nordnet ▪ Strengthen distribution capacity by adding new partners ▪ Expand the Securities lending
Slide 88: Case study: Livrente
Securities Funds Pension Credit brokerage Case study: Livrente What is “livrente”? ▪ ”Livrente” is a Danish pension product which pays Development addressable livrente market a monthly amount as long as you live SEK trillion ▪ Some 50% of the Danish pension market is Addressable today Extended marke
Slide 89: Case study: Finnish Wrapper
Securities Funds Pension Credit brokerage Case study: Finnish Wrapper What is “Finnish wrapper”? ▪ Finnish wrapper is a tax efficient insurance product Development addressable FI wrapper market1 with an inheritance plan included SEK billion ▪ It has a wide instrument universe including stocks, SIP C
Slide 90: This is Credit
Securities Funds Pension Credit brokerage This is Credit Highly complementary suite of credit products ▪ Margin lending allows customers to amplify returns ▪ Own mortgage to attract and retain HNWIs ▪ Automated credit monitoring ▪ Capital-light credit resulting in high RoEs 27.3bn >50% in total lend
Slide 91: Liquidity portfolio to generate ~SEK1.8bn in 2023
Securities Funds Pension Credit brokerage Liquidity portfolio to generate ~SEK1.8bn in 2023* *Assuming Q4 2022 volume, currency allocation, credit spreads and market consensus estimates for IBOR development. Volume 1 SEKbn Lending Liquidity portfolio Lending Liquidity portfolio Other 64 Net interest
Slide 92: Loan portfolio to generate ~SEK1.1bn in 2023
Securities Funds Pension Credit brokerage Loan portfolio to generate ~SEK1.1bn in 2023* *Assuming Q4 2022 volumes and interest as per Jan 1st, 2023. Not accounting for deposit rate paid to customers. Unsecured Mortgage Margin lending Volume1 Net interest income SEKbn 27.3 ~SEK1,100m 25.4 26.5 26.7 2
Slide 93: Interest to customers of SEK ~200m in 2023
Securities Funds Pension Credit brokerage Interest to customers of SEK ~200m in 2023* *Assuming Q4 2022 volume, currency and customer account mix, and interest rates as of January 1, 2023 Estimated interest cost 2023 SEKm | Based on 4Q 22 volumes Interest cost on total deposits (bps) 23 Interest cos
Slide 94: Resilient revenue bolstered by diversified revenue streams
Resilient revenue bolstered by diversified revenue streams Adjusted revenue by income type Savings capital by product SEKm1 SEKbn Brokerage Funds Deposits Net transaction related Net fund related income Net Interest income Other income² 802 Adjusted revenue / avg. savings capital 715 74 565 154 81 0
Slide 95: Deep-dives: Operating leverage and capital
Deep-dives: Operating leverage and capital 95
Slide 96: We are positioned to be long-term winners
We are positioned to be long-term winners #1 PAN-NORDIC PASSIONATE STRONG, OPERATING DIGITAL AND TALENTED SUSTAINABLE LEVERAGE AND PLATFORM PEOPLE GROWTH CAPITAL LIGHT 96
Slide 97: Rigorous focus on cost discipline to drive operating leverage
Rigorous focus on cost discipline to drive operating leverage Key drivers of operating leverage Operating leverage drives improvement in cost margin Adjusted operating expenses1 in absolute terms and in relation to avg. savings capital (bps)2 Adjusted operating expenses (SEKm) Adjusted operating exp
Slide 98: Financial education through our visible savings economists and investment coaches
Financial education through our visible savings economists and investment coaches… Frida Bratt Ara Mustafa Axel Karlsson Savings economist Investment coach Active trading manager ▪ 1,700 media quotes / statements ▪ Weekly podcast host for Sparpodden ▪ Frequent interaction with active traders ▪ Savin
Slide 99: More than 500k members in our community
…and more than 500k members in our community, with millions of views, streams and sessions… 6,6 million views 111.5K followers 99K 300K followers users 5,6 10 million million 68.6K 75.6K entries streams followers followers 42K followers Note: Follower-base as of January, 2023; Sessions/Views full ye
Slide 100: Results in highly profitable customer growth
…results in highly profitable customer growth High share of low-cost organic searches together with …results in low customer acquisition cost and a very increasing retention rates… attractive customer lifetime value Share of new customers by Retention of active customer base Nordnet’s customer acqui
Slide 101: Improved cost to income ratio driving profit margin
Improved cost to income ratio driving profit margin Adjusted cost income ratio1 Adjusted profit margin1 55% 90% 84% 55% 51% 77% 50% 47% 80% 72% 45% 70% 40% 60% 35% 50% 30% 40% 40% 36% 25% 21% 31% 20% 16% 30% 15% 20% 10% 10% 10% 5% 0% 0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 (1)
Slide 102: Revenue growth together with operating leverage driving significant profit growth
Revenue growth together with operating leverage driving significant profit growth Adjusted revenue Adjusted operating expenses³ Adjusted profit before tax SEKm SEKm SEKm 44 61 53 46 32 24 17 17 25 59 67 63 3 639 3 382 2 689 2 451 2 115 CAGR +3% 1 524 1 576 1 141 1 210 1 097 1 064 377 2019 2020 2021
Slide 103: Nordnet has a capital light business model
Nordnet has a capital light business model Nordnet’s income model Off balance sheet On balance sheet Liquidity portfolio Credit portfolio Savings capital SEK ~715bn SEK ~58bn SEK ~27bn ~69% ~20% ~11% ~45% ~40% ~15% Margin Mortgage Shares Funds Deposits Unsecured lending3 lending Net commission Net c
Slide 104: High quality loan portfolio with loan losses at very low levels
High quality loan portfolio with loan losses remaining at very low levels Dec 2022 savings capital Financial assets Lending SEKbn SEKbn SEKbn 1 1 Liquidity portfolio Lending Unsecured Mortgage Margin lending Funds 58 27.3 20% 53 25.4 12.3 12.4 715 11% Deposits 25 27 8.9 10.9 69% Brokerage 4.1 4.1 Q4
Slide 105: Maintained capital position
Maintained capital position Total capital ratio Leverage ratio % % Capital requirement Additional Tier 1 ratio Leverage ratio Requirement including P2 guidance CET1 ratio Buffer over total capital requirement Minimum requirement 4.8% 4.6% 4.5% 2.7% 21.6% 20.9% 3.9% 6.3% 5.9% 18.2% 3.0% 17.1% 15.3% 1
Slide 106: Attractive return on equity
Attractive return on equity Adjusted return on equity1,2 Adjusted return on equity excluding intangible assets1,2,3 70% 70% 60% 60% 57% 56% 50% 50% 45% 44% 40% 40% 36% 40% 30% 30% 21% 20% 20% 13% 14% 10% 10% 10% 7% 10% 0% 0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 (1) Adjusted op
Slide 107: Dividend policy
Dividend policy Nordnet’s dividend policy remains: “Deliver superior total returns to shareholders via a pay-out ratio of 70% of statutory net income” 70% 107