Nordnet AB · OMXSTO:SAVE
Nordnet AB — Investor Presentation (October 2022)
102 slides from Nordnet AB's investor presentation, October 2022
Slide 1: Company presentation October 2022
Company presentation October 2022
Slide 2: Introduction to Nordnet
Introduction to Nordnet 2
Slide 3: This is Nordnet
This is Nordnet We exist to democratise savings and investments 681bn 1.68m 60m Savings capital Active customers in On-exchange trades SEK as of Sept. 2022 4 Nordic countries as of Sept. 2022 in LTM Q3 2022 3
Slide 4: Pan-Nordic powerhouse
Pan-Nordic powerhouse #1 Nordic broker #1 domestic broker on Nordic exchanges 2021 NPS position in Nordics #1 #1 NPS position vs key competitors with #1 rank in DK, FI, NO; #2 in SE #1 Market share in Nordics #1 market share of addressable market among online platforms
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 September 2022 savings capital1 (%) Savers “Do it (47%) for me” Investors “Help me (45%) do it” Traders “Do it (8%) myself” Source: Nordnet as of September 2021. (1) The three customer groups are defined based on the number of trades in the l
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 3,323 Savings 2,689 capital growth 1,524 Product penetration 2019 2020 2021 LTM Q3 New product 2022 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 LTM Q3 2022 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)2 SEKm Sept 2
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 1 677 802 1,601 681 1,221 565 914 765 395 669 567 272 286 490 235 367 395 433 200 314 344 166 193 224 136 128 157 90 102 90 104 86 103 49 55 39 21 36 2010 2018 2007 2011 2005 2020 2008 2017 2013 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 3,323 2,689 2,451 2,070 CAGR +3% 1,524 1,576 1,097 1,141 1,196 1,064 377 2019 2020 2021 LTM Q3 2019 2020 2021 LTM Q3 2019
Slide 18: Medium-term financial targets
Medium-term financial targets Target Customer growth Average savings capital per customer2 Dividend payout ratio % SEK (‘000) % 34% 31% 477 455 409 416 Around SEK450k per customer “Deliver superior total returns to 13% 12%1 Around 15% p.a. shareholders via a pay-out ratio of 70% of statutory net inc
Slide 19: 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 19
Slide 20: Nordnet 2025 strategy
Nordnet 2025 strategy 20
Slide 21: #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 22: 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 23: 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” 3 4 “Full process “Data-informed automation organisation and and optimisation” personalized CX” 5 “A scalable cloud- “Best-in-class 6 powered platform” people and operating model” Pred
Slide 24: 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 App to transition from “control of investments on the go” to “live your financial life in the app” including
Slide 25: 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 26: A typical day on the Nordnet platform
1 A typical day on the Nordnet platform EU market open: ~20k request/s US market open: ~11k request/s EU market close (SE/FI/DE) +118m net fund SEK US market close 285k 265k DAU app 115k DAU web trades 88k x-border trades +1,000 +230m +23m 7.3bn API order operations/s Note: 2021 figures new customer
Slide 27: NEXT web application
1 NEXT web application 36% of Nordnet users use only or mainly the web 115k Daily Active Users (DAU) with a 21% DAU/MAU ratio 115k Trades per day representing 43% of daily traded value during 2021 Share of traded value per month 27 Note: 2021 figures
Slide 28: Nordnet app
1 Nordnet app 63% of Nordnet users use only 5%web Only The or mainly the app Nordne t app 265k Daily Active Users (DAU) with a 38% DAU/MAU ratio Only app Mainly 63% 86k Mainly Trades per day representing app 25% of daily traded value during 2021 Note: 2021 figures Share of traded value per month
Slide 29: Shareville social investing community
1 Shareville social investing community 300k users have shared their portfolios on Shareville 1.8x Traded value of a Shareville user vs a non-Shareville user1 2.1x Commissions of a Shareville user vs a non-Shareville user1 (1) 2021 figures
Slide 30: 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 166 Shareville “ambassadors” in beta test community 143 unique insights from user surveys and in-depth interviews 858 datapo
Slide 31: 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 32: Automated customer journeys
3 Automated customer journeys Degree of automation Lower Higher Ongoing 2022 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 33: Data-informed organisation & personalized experience
4 Data-informed organisation & personalized experience Department Personalized dashboards suggestions Data-informed Personalized decisions content Continuous Personalized Improvements communication 33
Slide 34: A cloud-powered platform
5 A cloud-powered platform What our tech strategy aims to achieve Security Scalability Data Speed Agility 34
Slide 35: Increased leverage from Cloud Technology drives innovation pace
5 Increased leverage from Cloud Technology drives innovation pace 60 Managed services Security 35 Scalability 12 Enables innovation and 1 allows focus on core business 2019 2020 2021 Q3 2022 YTD % development on Nordnet X
Slide 36: Scaling up development capacity
5 Scaling up development capacity 51 37 138 118 33 25 91 18 2020 2021 2020 2021 2022E 2020 2021 2022E FTE FTC #Signed #Development Engineers Teams (EOY) #Engineers
Slide 37: Sustaining Engineering Efficiency
5 Sustaining Engineering Efficiency 7,564 42 3.1 7,220 2.8 5,525 29 Automation Sunsetting 3,174 Cloud migration Team autonomy 2020 2021 2020 2021 2020 2021 2020 2021 Drives improvements in #Releases #Delivered Release JIRA all productivity KPIs JIRAs Lead time Lead time (min) (days)
Slide 38: Availability 2021
5 Availability 2021 The bottom line 99.9% 99.8% How large is this improvement? 496 min vs 173 min downtime in 2020 downtime in 2021 4x Traffic 2020 2021 2021 vs 2019
Slide 39: Release cadence
5 2 hours Release cadence of web-app NEXT 5 days Release cadence of native app 7,564 Releases during 2021
Slide 40: 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 Quarterly eNPS +41 +34 +36 +33 +33 +28 +26 +25 +21 +17 +6 +3 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q42020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2
Slide 41: 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 42: 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 43: ESG embedded in Nordnet's DNA
7 ESG embedded in Nordnet’s DNA A responsible and sustainable business Practice transparency, compliance and a high ethical standard Reduce negative impact on the environment and climate Promote physical and mental health through a good working environment Equality and diversity A better gen
Slide 44: 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 45: 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 46: The Re:turn initiative
7 The Re:turn initiative Savings making a difference. For the environment. SEK 0.10 donated to an environmental cause for every trade made Customers vote on which causes the donations are made to 46
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: Deep-dives: Market
Deep-dives: Market 48
Slide 49: 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 49
Slide 50: 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 51: 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 ~20.5 experience 3% 6% ~3.2
Slide 52: Strong growth runway for Nordnet across the Nordics
Strong growth runway for Nordnet across the Nordics… Addressable 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 Den
Slide 53: Considerable growth in the addressable market until 2025
…with a considerable growth in the addressable market until 2025 Addressable market size and OTP’s market share by country 20251 SEKtln OTP market share of current market Extended market ~21% ~20% ~10% ~12% ~17% ~2.5x ~2.8 ~20.5 ~6.8 ~0.7 ~3.2 ~2.5 ~2.6 ~17.3 ~8.3 Total addressable market (1) Source
Slide 54: 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 54
Slide 55: 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 56: 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 LTM Q3 2022 revenue by country (%) Nordnet’s number of customers by country Revenue margin by country (bps)2 SEKm Sept 2
Slide 57: 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% 1,800 1,804 3% 6% 1,583 1
Slide 58: Sweden
Sweden Achievements 2021 Customer behavior Record number of IPOs in Sweden distributed Digitized mortgage – lowest interest rate in Sweden 690k savings capital per 3 100 income per 5.2 trades per customer customer (SEK)1 customer (SEK)2 per month3 Fully digitized occupational pension sales and trans
Slide 59: 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 1,143 6% 2% 7% ~2.0 5.4 ~1.7
Slide 60: Norway
Norway Achievements 2021 Customer behavior EPK “own pension” account launched Growing the fastest in mutual funds in ASK in Norway 379k savings capital per 2 500 income per 4.7 trades per customer customer (SEK)1 customer (SEK)2 per month3 #1 domestic broker Oslo børs 69% own shares 39% own funds 33
Slide 61: 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 62: Denmark
Denmark Achievements 2021 Customer behavior Step change in awareness in the Danish market Danish Aktiesparkonto (ASK) launched 522k savings capital per 3 000 income per 4.1 trades per customer customer (SEK)1 customer (SEK)2 per month3 Strong growth in funds fuelled by monthly savings 77% own shares
Slide 63: 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 895 9% 5% 10% ~2.8 ~0.7 542 5.6 402 293 ~2.1 ~1.6 ~
Slide 64: Finland
Finland Achievements 2021 Customer behavior #1 market share in FASK (76%) accounts #1 in trades on Nasdaq Helsinki 2021 307k savings capital per 1 600 income per 2.7 trades per customer customer (SEK)1 customer (SEK)2 per month3 Revenue per customer +13% since 2020 67% own shares 52% own funds 39% c
Slide 65: 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 Leading customer proposition based on… One stop Leading shop for Product Co
Slide 66: Deep-dives: Growth
Deep-dives: Growth 66
Slide 67: 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 67
Slide 68: Nordnet has six main revenue growth drivers
Nordnet has six main revenue growth drivers New customer Revenue1 growth SEKm New net savings 3,639 3,323 Savings 2,689 capital growth 1,524 Product penetration 2019 2020 2021 LTM Q3 New product 2022 launches Opportunistic (1) Adjusted revenue (SEK), subtracting SEK66m in 2019 68 M&A
Slide 69: 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) 1,677 802 1,601 681 1,221 565 914 395 82 83 765 +379 669 +308 567 272 286 490 54 433 2 235 367 395 +192 200 344 166 +148 136 +103 90 104 23
Slide 70: 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 gender1 % (‘000) 1 2019 and older 2020 2021 2022 1 651 858 310 366 119 7% 3% 2% 2% 3% 2022 5.0% 4.5% 22% 2021 29% 34% 36% 38% 4.0% 3.5% 2020 19% 3.0% 2
Slide 71: 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 YTD Q3 2022 Share of cross-border trades YTD Q3 2022 bps % | million trades 78 32.4 4.9 4.8 1.5 43.5 25% 30% 24% 27% Cross-border 35% 50 53 44 39 Pre 2020 2020 2021 2022 All Pre 2020 2020 2021 2022 All Share
Slide 72: Embedded growth in Nordnet's existing customer base
Embedded 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) 4.0
Slide 73: 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 74: 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 75: Leading securities brokerage offering
Securities Funds Pension Credit brokerage Leading securities brokerage offering Brokerage capital development Customer behavior1 SEKbn +1 million 1.8 trn Sweden Norway Denmark Finland 573 customers made a trade In traded value | SEK 35% 123 404 132 44% 89 268 81 4.1 trades 31% 92 62% 185 64 60 58 50
Slide 76: 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 40 90% 600 000 30 80% 20 Number of
Slide 77: 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 development last twelve months % | indexed SE NO DK FI 0.34 2018-2019 2020 2021 2022 10% 0.32 5% 0.30 YTD 0% development: 0.28 0.26 -5% 0.24 -10% -8% 0.22 -
Slide 78: 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 79: 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 adv
Slide 80: Leading Nordic fund supermarket
Securities Funds Pension Credit brokerage Leading Nordic fund supermarket Fund capital Customer behavior1 SEKbn Sweden Norway Denmark Finland 154 15 o/w 20% pension 61% 154bn AuM in funds SEK 29bn in Nordnet funds SEK 24 100 51% 218k 44% 81 8 39 14 6 57 10 23 51% 7 4 18 11 76 36 48 55 29% Avg AuM pe
Slide 81: This is Pension
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 Sweden, Norway and Denmark Pension Insurance
Slide 82: 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 232k 794k o/w 32% private endowment insurances 184.5 29.3 35% Customers Avg AuM per pension 126.8 20.2 customer 51% ~21% 21.3 +18bn 89.6 11
Slide 83: 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 84: 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 26.4bn >50% in total lend
Slide 85: Liquidity portfolio to generate ~SEK1.4bn in 2023
Securities Funds Pension Credit brokerage Liquidity portfolio to generate ~SEK1.4bn in 2023* *Assuming Q3 2022’s volume, currency allocation, credit spreads and market consensus on IBOR development. Not accounting for deposit rate paid to customers. Volume 1 SEKbn Lending Liquidity portfolio Lending
Slide 86: Loan portfolio to generate ~SEK900m in 2023
Securities Funds Pension Credit brokerage Loan portfolio to generate ~SEK900m in 2023* *Assuming Q3 2022 volumes and interest as per Sep 30, 2022 (margin lending, unsecured) and Oct 1, 2022 (mortgage). Not accounting for deposit rate paid to customers. Unsecured Mortgage Margin lending Volume1 Net i
Slide 87: Savings accounts made available to retain deposits
Securities Funds Pension Credit brokerage Savings accounts made available to retain deposits Savings account development Interest offered on savings accounts SEKbn % Sweden Norway Denmark Finland 2.0 2.0 1.9 1.9 1.9 1.8 1.9 <1M >1M 0.7 0.9 0.9 0.7 0.8 0.9 0.9 0.25% 0.75% 0.5 0.4 0.4 0.5 0.75% 1.5% 0
Slide 88: Continued high revenue driven by resilient margins and diversified income streams
Continued high revenue driven by resilient margins and diversified income 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 capi
Slide 89: Deep-dives: Operating leverage and capital
Deep-dives: Operating leverage and capital 89
Slide 90: 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 90
Slide 91: 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 92: 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 2,155 media quotes / statements Weekly podcast host for Sparpodden Frequent interaction with active traders 15,80
Slide 93: More than 500k members in our community
…and more than 500k members in our community, with millions of views, streams and sessions… 11,2 12,6 million million views sessions 116.6K followers 96.6K 300K followers users 5,2 6,1 million million 66.9K 74.6K entries streams followers followers 40.5K followers Note: Follower-base as of October,
Slide 94: 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 95: 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 LTM Q3 2017 2018 2019 2020 2021 LTM Q3
Slide 96: 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 45 32 24 17 16 25 59 67 62 3,639 3,323 2,689 2,451 2,070 CAGR +3% 1,524 1,576 1,097 1,141 1,196 1,064 377 2019 2020 2021
Slide 97: 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 ~681bn SEK ~64bn SEK ~26bn ~68% ~19% ~13% ~44% ~40% ~15% Margin Mortgage Shares Funds Deposits Unsecured lending3 lending Net commission Net c
Slide 98: High quality loan portfolio with loan losses at very low levels
High quality loan portfolio with loan losses remaining at very low levels Sept 2022 savings capital Financial assets Lending SEKbn SEKbn SEKbn 1 1 Liquidity portfolio Lending Unsecured Mortgage Margin lending Funds 19% 64 26.4 24.2 52 11.7 11.9 681 13% Deposits 24 26 8.2 10.6 68% Brokerage 4.1 4.1 Q
Slide 99: 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 4.7% 4.5% 1.6% 4.8% 4.4% 4.1% 3,9% 21.8% 21.6% 19.6% 3,0% 3.2% 6.3% 17.
Slide 100: 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% 44% 44% 40% 40% 35% 40% 30% 30% 21% 20% 20% 13% 14% 10% 10% 10% 7% 10% 0% 0% 2017 2018 2019 2020 2021 LTM Q3 2017 2018 2019 2020 2021 LTM Q3 2022 2022 (
Slide 101: 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% 101
Slide 102: Nordnet
417 Nordnet