Lhv Group As · OMXTSE:LHV1T

Lhv Group As — Q3 2018 Earnings Presentation

16 slides from Lhv Group As's earnings presentation, Oct 23, 2018

  1. Slide 1: LHV Group Q3 2018 results

    LHV Group Q3 2018 results October 23, 2018

  2. Slide 2: Eventful quarter

    Eventful quarter For customers Records in business volumes Youth Bank Micro-investing E-recognition Improved accessibility to cash withdrawal Customer numbers Loans Deposits Funds Assets under management Card payments Other Best Bank in Estonia recognition by Euromoney New Board member of LHV Bank C

  3. Slide 3: All business volumes are growing

    LHV Group All business volumes are growing Financial results, EURt Net interest income Net fee and commission income Other income Total revenue Total expenses Earnings before impairment Impairment losses on loans Income tax expense Net income Business volumes, EURm Deposits from customers Loans (net

  4. Slide 4: Comparison with financial plan

    LHV Group — comparison with financial plan Net profit compared to financial plan +1 EURm Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit, incl. attr. to

  5. Slide 5: LHV Banking

    LHV Banking More than 7,300 new customers in Q3 oO Deposits aon = ma = = 600 300 0 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q-18 Q2-18 Q3-18 Demand deposits "Term deposts EUR URm Loans (net) 1000 425% 12 * uae a | 600 = go @ G& o - = og 200 0 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 C417 Q1-18 Q2-18 Q3-18 Corporate

  6. Slide 6: LHV Banking

    LHV Banking Good revenue base, but also increased provisions Financial results, EURt 9 quarters Q3-18 Q2-18 A quarter . Tl. Net interest income TTT 9.646 9.509 a7 soln Q3 realization of institutional Net fee and commission income somone 2,587 3,800 -1,213 banking closed transactions Other income -.-

  7. Slide 7: LHV Banking — comparison with financial plan

    LHV Banking — comparison with financial plan Net profit ahead of updated financial plan by +0.6 EURm Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit Bus

  8. Slide 8: LHV Asset Management

    LHV Asset Management Volume of LHV funds 1.2 EURb EURm Assets under management and customers customers (th.) 1600 200 ‘AUM 413% 4204 1900 1067,” im 0 SS 180 600 170 300 160 0 180 3-16 4-16 ai-i7 Q217 98-17 Q4-17 C118 Q2-18 Qe-18 Pillar Il pensionfunds =" Other funds — Active customers of Pillar II p

  9. Slide 9: Financial reporting is subject to IFRS 15 starting from FY 2018

    • • • 9 Financial reporting is subject to IFRS 15 starting from FY 2018, historic periods presented without changes

  10. Slide 10: Financial reporting is subject to IFRS 15 starting from FY 2018

    • • 10 Financial reporting is subject to IFRS 15 starting from FY 2018, historic periods presented without changes

  11. Slide 11: Stock information

    LHV Group Stock information EUR LHV stock price and tumover EURt 12 1,260 m= LHV dally turnover (EURt) —LHV stock closing price (EUR) W buhdanuat Lda rt Apr16 Jul16,— Oct 16 Jan 17, Apr 17 U7 Oct 17 Jan 18 = Apr 18 Jul 18 “ili sulla dul refines Of Tee Dynamics of LHV stock price and comparison index

  12. Slide 12: 20.5 EURm net profit, Best bank in Estonia

    20.5 EURm 22% Net profit Pre-tax ROE Best bank in Estonia 20,000 Euromoney award Bank customer increase 15

  13. Slide 13: Annexes

    Annexes

  14. Slide 14: Strong liquidity and capitalization

    LHV Group Strong liquidity and capitalization 14 LCR a a4 at @ arg 3 Q4-17 CT1 capital adequacy oR 04 at a 2017 8 04-17 —— LAV internal Tier 1 ratio limit Qi 2018 at 2018 ford 09 181 Loan-deposit ratio % 100 co I I I | 40 20 0 08 A4 at a 2017 Loans (net) 8 a4 a1 @ aR 2018 mmm Unissued deposits }=——

  15. Slide 15: Loan portfolio quality influenced by loans to a few specific customers

    LHV Group Loan portfolio quality influenced by loans to a few specific customers % Corporate loans by ratings 30 2 20 15 10 : | ! 0 i 1900 460«7 a 9 1012 13 0317 02-18 03-18 EURm LHV Finance loans overdue porfolio ta 02 - ~s SB B@ eee - 12 = os @ a3 G4 at a2 a3 a4 at a a3 2017 2018 loan impaiments =

  16. Slide 16: AS LHV Group contact details

    AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 [email protected] LHV.EE

LHV Group — Q3 2018 Earnings Presentation on 6ix