A specialised consumer finance company growing across the Nordics Company presentation Disclaimer
ABOUT THIS PRESENTATION This presentation has been prepared solely for information purposes by Komplett Bank ASA (the “Company” or “Komplett Bank”). This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant persons"). Any person who is not a relevant person should not act or rely on the presentation or any of its contents. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Komplett Bank. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. The presentation and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to Komplett Bank as of, its date. The presentation does not purport to contain a complete description of Komplett Bank or the markets in which the bank operates. Neither Komplett Bank nor any of its affiliates or any third party have independently verified any information used in preparing this presentation. Neither Komplett Bank nor any of the affiliates (nor any of its or their respective directors, officers, employees, professional advisers or representative) makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information, these materials (including, without limitation, any opinion contained therein), any of their contents or any of the results that can be derived from the presentation or any written or oral information provided in connection therewith. Without limiting a person's liability for fraud, no responsibility or liability (whether in contract, tort or otherwise) is or will be accepted by Komplett Bank or any of its affiliates or any of its or their respective directors, officers, representatives, employees, advisers or agents) as to, or in relation to, the presentation, its contents, the accuracy, reliability, adequacy or completeness of the information used in preparing these materials, any of their contents or any of the results that can be derived from the presentation or any written or oral information provided in connection therewith. Any statement, estimate or projections included in the presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance may prove not to be correct. No representation or warranty is given as to the completeness or accuracy of any information in this presentation, including forward-looking statements contained in the presentation or the accuracy of any of the underlying assumptions. Nothing contained herein shall constitute any representation or warranty as to the future performance of Komplett Bank, any financial instrument, credit, currency rate or other market or economic measure. Neither Komplett Bank nor any of its affiliates has verified the achievability of any estimate or forecast of future financial performance contained herein. Information about past performance given in these materials is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Neither Komplett Bank nor any of its affiliates accepts or will accept any responsibility, duty of care, liability or obligations for providing any relevant person with access to additional information, for updating, modifying or otherwise revising the presentation or any of its content which may become apparent, or for notifying any relevant person or any other person of any such inaccuracy. By accepting these materials, each relevant person represents and warrants that it is able to receive them without contravention of legal or regulatory restrictions in the jurisdiction in which such recipient resides or conducts business. By accepting the presentation, each relevant person agrees to be bound by the foregoing limitations.
2 Banking is changing In an increasingly digital society, with a multitude of available options, we understand the importance of flexibility
3 We provide flexible, convenient loans for creditworthy customers
Digital platform Specialised consumer Providing flexibility with online offering finance solutions when people need it
Consumer loans
Credit cards
Point-of-sales finance
Deposit accounts
4 Nordic countries receptive for digital consumer banking offering
World’s 50 most digitised countries (NRI index*) Total consumer loans Sweden, Finland and Norway (EUR billion)**
50
45
40
35
30
25
20
15
10
5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
UAE
Italy
Chile
Israel
Spain
Qatar
Japan
Malta
Latvia
Russia
France
Turkey
Cyprus
Poland
Ireland
Austria
Taiwan
Iceland
Finland Estonia
Canada
Bahrain Norway
Sweden Sweden Finland Norway
Belgium
Slovakia
Slovenia
Hungary
Portugal
Uruguay
Malaysia
Australia
Denmark
Germany
Lithuania
Mauritius
Singapore
Costa Rica Costa
Hong Kong Hong
Macedonia
Kazakhstan
Switzerland
South Korea South
Netherlands
Luxembourg
SaudiArabia
New Zealand New
United States United Czech Republic Czech
United Kingdom United Source: Norwegian Financial Supervisory Authority (NFSA), Swedish Financial Supervisory Authority (FI), Finland’s Bank Source: The World Economic Forum
* Networked Readiness Index (NRI) is used by the World Economic Forum to assess countries’ preparedness ** Definitions of consumer credit may differ between countries. benefit from emerging technologies and capitalise on opportunities from the digital transformation (2016) Currency conversions are based on historical annual average conversion rates 5 A Nordic specialised consumer finance company
• Offering flexible consumer financing solutions to customers across the Nordics • 247,000 customers across four product areas in Norway, Sweden and Finland • Strategic partnership with Komplett Group, largest e-commerce company in the Nordics • Multichannel distribution via own websites and agents • Digital and scalable, low-cost operations • Robust balance sheet, well capitalised for further growth • Founded in 2014, listed on Oslo Stock Exchange in 2017
Consumer loans Credit cards Point-of-sales finance Deposit accounts
76,000 customers 53,000 customers 95,000 customers 24,000 customers NOK 7,176 million net loans NOK 785 million net loans NOK 400 million net loans NOK 8,754 million deposits
Q3 2019 figures
6 Proven track record since inception
Net loans (NOK million) Profitability
7 844 331 274 5 461 25% 30% 23%
3 322 129 4% 1 601 442 11
2014 2015 2016 2017 2018 2015 2016 2017 2018
Profit after tax (NOK million) Return on equity
Net loans CAGR 2014 - 2018 Average ROE 2016 - 2018 Total capital ratio as of Q4 2018 105% 26% 21.4%
7 Longstanding partnership with Komplett Group strengthens distribution
Close cooperation with Komplett Group, 2018 revenue distribution the largest e-commerce company in the Nordics:
• IP rights (trade mark, brand). Komplett brand 14% name ranked among the strongest brands in Norway* 51% 35% • Loyalty card (Komplett Bank Mastercard). Tailored to online shopping offering an
attractive award program integrated with Norway Komplett Rest of Nordics Germany • Distribution of point-of-sales finance products through “KomPay” checkout platform in Komplett flagship stores
2018 key figures
NOK 8.6 billion 100 million 1.6 million revenues site visits active customers
*Source: BI Norwegian Business School research - Norsk Kundebarometer 8 Strategic support from Canica solidifies long term platform
Selection of Canica portfolio companies within retail • Largest Komplett Bank shareholder with 19.5% ownership
• Among the largest privately owned investment companies in Norway with NOK 34 billion in assets under management
Largest e-commerce company in the Nordics Norwegian hardware store • Active, long-term ownership, within sectors such as retail, Revenues 2018 NOK 8.6 billion Revenues 2018: NOK 1.15 billion consumer goods, real estate and manufacturing Canica ownership: 98% Canica ownership: 100% • Provides core expertise within business development and finance
Global branded consumer goods supplier • Extensive network of Nordic retail companies, including Danish Brand and trading house within Kitchen, living and dining Revenues 2018: NOK 40 billion Komplett Group Revenues 2018: NOK 1.01 billion Canica ownership: 19% Canica ownership: 100%
9 Experienced and seasoned management team
Mr. Haglund was appointed CEO in January 2019. Mr. Haglund has Director of Credit Cards since March 2018. Mr. Holtedahl has more Mrs. Dolve worked as a Project Director in the Bank since early 2017, worked at Komplett Bank since 2015 and has previously held the than 18 years of experience working with consumer finance, credit and then Director Loans Sweden & Finland from March 2018. In June positions of Chief Financial Officer (CFO) and Chief Strategy Officer cards and financial services. Previous positions include Co-Founder, 2019 she was appointed the Director Credit Risk and Collections. She (CSO). He has an extensive background from the financial services CFO and Deputy CEO in Advanzia Bank, Co-Founder and VP of Treasury has an extensive background in the Consumer Finance sector in roles industry and previous positions include CEO of Buckaroo, Managing in Bankia Bank ASA and Deputy Director General in the Norwegian such as Head of Personal Loans in Bluestep and Head of Credit Risk Director of Intrum Justitia Finance and Nordic Head of Banks at Ministry of Finance. Mr. Holtedahl holds a BSc. in Commerce, Sweden at EnterCard. She holds a BA degree in Statistics from the Economics and Accountancy from Concordia University (Canada) and University of Stockholm. Jan Haglund Entercard. He holds an MSc in Business Administration and Russian Erik Holthedahl Annika Dolve and a Master of Law from Uppsala University. an MSc. in Economics from the University of Oslo. CEO Director Credit Cards CCRO Mr. Fagerbakke has been with the company for two years as the Mr. Bagås has extensive experience from working with compliance Mr. Hanssen has been with the company since early 2017 when he Finance Manager until January 2019 when he was appointed acting work from the banking and financial industry. During the period 2008- was appointed Director of POS, and then in June 2019 also including CFO in Komplett Bank. He is an experienced finance professional and 2014 he worked as a compliance officer in Storebrand consumer loans in all the geographies. Before joining Komplett Bank state authorized public accountant with a background including Kapitalforvaltning AS and in the period 2014-2017 as a compliance he held a number of positions with Intrum Justitia, including Group IT several years as senior auditor and manager at KPMG Norway and officer in Storebrand Finansiell Rådgivning AS. Since 2017, Bagås has Director Western Europe, Managing Director for Intrum Justitia Italy Gresvig. He holds an Master in Accounting and Auditing from the worked as a risk and compliance manager at Komplett Bank, and in and Business Development Manager Central Europe. he also held the Norwegian School of Economics. June 2019 he was appointed the CRO in Komplett Bank. Bagås holds a position of CIO/COO for Buckaroo. Mr. Hanssen holds a BBA from the Eivind Bagås Enok Hanssen Henning Fagerbakke bachelor's degree in accounting from BI Norwegian Business School in University of Gothenburg. Compliance & Risk Director Consumer CFO Sandvika and a bachelor of business law from BI Norwegian Business Control (CRO) School in Oslo. Loans and POS Co-founder and CMO / CIO. Mr. Ryengen has a comprehensive Mrs. Pedersen has been with the company since the start-up, and background in the financial services industry. Previous positions served as Employee Elected Board Member from March 2014 to include Head of Distribution, Marketing and Analytics Financial March 2018. In 2018 she was appointed Director HR, and then in June Services at Accenture, Product Development Manager at Santander 2018 she was appointed to the role of COO. Previous positions include Consumer Bank and Project Manager at SEB Kort. He holds an MSc in Corporate Trainee and Senior Project Manager in DNB. Mrs. Pedersen business administration and economics and an Executive MBA from holds an MSc in Business Administration and Economics from BI the Norwegian School of Economics. Christina Pedersen Norwegian Business School and an MSc in Business Management with Steffen Ryengen Finance from Heriot-Watt University. CMO/CIO COO
Mr. Thomassen served as Chief Compliance officer from May 2015 until May 2019 when he was appointed Director Legal & HR. He also served as a board member from December 2012 to May 2015. Mr. Thomassen previous positions include Director Lean & Business Development at Statoil Fuel and Retail and Department Director of Cards at Santander Consumer Bank. Mr. Thomassen holds a Master in Wilhelm Thomassen European Business from Royal Holloway University of London and an Executive MBA from the Norwegian School of Economics. Director Legal & HR
10 Knowledgeable and diligent Board of Directors
Stig Eide Sivertsen | Chairman of the Board Mr. Sivertsen has served as independent board member in Komplett Bank ASA since the Jan Ole Stangeland | Board member general meeting of 2018. He was appointed Chairman of the Board in August 2019. He has broad operational experience from technology, media and finance as well as extensive Board member since March 2018. Mr. Stangeland has broad and relevant financial market experience as a board member of listed companies. Sivertsen served as CFO in Schibsted and experience as the long-standing CFO of the investment company Canica AS. In addition, PGS, was the founder and CEO of Nettavisen and group CEO of Telenor Broadcast Holding Stangeland has been a member of the Bank's Nomination Committee and, both through this AS, in addition to group CEO in Opplysningen (1881) AS. He holds a BA (Hons) Econ and an appointment and through the position as the CFO of the bank's largest shareholder, knows the MSc from University of Durham (UK) and supplementary Law degree from the University of bank well. He holds an MSc in Business Administration and Economics from BI Norwegian Bergen. Business School.
Bodil Palma Hollingsæter | Vice chair of the Board Elected Deputy Chairman of the Bank in April 2015 and has served on the board since March Hilde B. Aasen | Employee elected board member 2014. Mrs. Hollingsæter currently works as Special Advisor at Innovation Norway and as Vice Chairperson of Teknika AS. She has an extensive banking background on an executive level Employee elected board member since March 2018. Mrs. Aasen has since June 2015 works as from positions, such as Director at Innovation Norway, Regional General Manager at Director of CRM in the Bank. She has previously worked as a Senior Market Analyst in both DNB Sparebanken Møre and Bank Manager at Romsdals Fellesbank. She also has board and Gjensidige. Mrs. Aasen holds a MSc. in Economics from the University of Oslo and a MSc. in experience from companies including Eksportfinans, Kommunekreditt and Management from BI – Norwegian School of Business. Kummunalbanken. She holds an MSc in Business and Economics and an AFA (CEFA equiv.) from the Norwegian School of Economics Harald Hjorthen | Board member Morten Petterøe | Employee elected board member Member of the board of Directors since August 2019. Mr. Hjorthen has extensive experience Employee elected board member since March 2018. Mr. Petterøe has worked as Head of IT- from the financial industry as a credit analyst at DNB, investment analyst at Kistefoss AS, Architecture and Software Architect in the Bank since April 2015. He has a background from, and seven years as portfolio manager at Norges Bank Investment Management (NBIM) stationed currently has the rank of Lieutenant, in the Royal Norwegian Air Force. Over the last 19 years he in Norway and Singapore and as an analyst in Trient Asset Management. Today he works as has worked within IT development and management, of which the last 15 has been in the manager of his family's investment company, Sniptind Invest AS. He holds a MSc in payment services and banking domain. His education is from NTNU - Norwegian University of Economics and Business Administration from the Norwegian School of Economics. Science and Technology as well as from Iowa State University (USA).
Live B. Haukvik | Board member Member of the Board of Directors since 2013 and the Chairman of the Board of Directors from December 2013 until August 2019. Mrs. Haukvik currently works as CFO / COO in Komplett Group. She has extensive board experience from several blue chip companies including Eksportfinans, Kvaerner, BI Norwegian Business School, Sparebanken 1 BV and Borgestad. She holds a Master of Finance (liz.rer.pol.) from Université de Fribourg, Switzerland and a Master of Management from BI Norwegian Business School.
11 Strategy and product offering
12 Komplett Bank’s products address a wide range of customer needs
Komplett Bank products Credit cards Point-of-sales finance Consumer loans Deposit accounts
Pre-purchase In-purchase Post-purchase High-yield savings Customer needs Customer applies and Convenient real-time Customer has decided to Online savings accounts offering receives payment & credit payment- & credit products make the purchase, and high interest rates, consistently addressed product before purchase available at the moment of now needs to decide how on the “top ten” list in Norway decision is made making the purchase decision to secure financing
13 Clear strategic roadmap for product-wise and geographical expansion
Komplett Bank follows a Komplett Bank’s strategic roadmap strategy for product-wise Consumer Credit Point-of-sales Deposit and geographical expansion loans cards finance accounts to ensure: March November September March 2014 2015 2017 2014 Reduced business risk February Q2 TBD TBD Economies of scale 2017 2019
March Q1 June 2019 Sustainable and profitable 2018 2019 2018 growth and value creation Q4 2018 TBD TBD TBD (EUR)
14 Product developments enhance customer experience and ensure competitive offering
Q2-Q3 2019 Q4 2019 H1 2020
Launch of new annuity loan product Annuity loan with refinancing functionality Komplett Bank mobile app
• Compliant with new Norwegian consumer • Enabling loan refinancing with more than five • New channel for self-service and customer lending regulation years maturity, in line with new regulations interaction • Ensures competitive offering in the Norwegian • Ensures competitive refinancing offering in the • Enabling biometric authentication for payments consumer lending market for new loans Norwegian consumer lending market and logins
Launch of Google Pay and Apple Pay SEK deposits Mobile invoice • Enabling Komplett Bank Mastercard for mobile • Ensures lower funding cost and contributes to a • Enhanced user experience for receiving and payments throughout the Mastercard more diversified funding structure paying invoices ecosystem
PSD2 platform • Platform for mandatory APIs, making Flexible Loan, credit cards and deposits PSD2 enabled payment methods
15 Following a balanced strategic approach to ensure sustainable growth To achieve sustainable growth Komplett Bank strives to optimise the balance between three key areas
Markets Enter markets and product areas in which there are substantial opportunities for growth and value creation
Capabilities Capital Build organisation that has the resources, analytical capabilities Ensure that the company is well funded and capitalised to pursue and technical infrastructure to execute on strategy identified opportunities included in the strategic roadmap
16 Building a diversified platform for value creation across the Nordics
2018 - 2022 | “SCALE UP” Total net loans (NOK billion) Capitalise on strategic and operational platform Continue product-wise and geographical expansion
8 2016 - 2017 | “BUILD UP” 7 Build and develop desired product- and cross-border capabilities Millioner
6
5
4 2014 - 2015 | “SET UP” Establish core capabilities 3 Ensure profitability 2
1
0 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 Loans Norway Credit cards Loans Finland Point-of-sales finance Loans Sweden
17 Favourable macro conditions in core markets
Norway Sweden Finland
NOK billion 1 391 SEK billion 2 089 2 115 EUR billion 1 365 2 042 116 117 1 320 1 336 1 987 113 1 290 1 928 110 1 267 1 887 108 1 233 1 836 1 853 106 1 191 1 803 104 1 164 100 94
2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018
Household consumption Household consumption Household consumption
12% 12% 12% 10% 10% 10% 8% 8% 8% 6% 6% 6% 4% 4% 4% 2% 2% 2% 0% 0% 0% 2012 2013 2014 2015 2016 2017 2018 2019e 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Unemployment Unemployment Unemployment
Sources: Statistics Norway (SSB), Statistics Sweden (SCB), Statista
18 Flexible consumer loans largest business area
• Komplett Bank “flexible loans” and annuity loans • Structured as a revolving credit facility with a credit limit of NOK 500,000 / EUR 50,000 • Interest rate offered ranges from 4.9% to 24.9% per year nominally • Launched in Norway in 2014, Finland in 2017 and Sweden in 2018
Customers (thousands) Net loans (NOK million)
80 8 000 Loans Norway Loans Norway
Loans Finland Loans Finland Tusener 60 Tusener 6 000 Loans Sweden Loans Sweden 40 4 000
20 2 000
0 0 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
19 Credit cards launched in Norway, Sweden and Finland
• Launched in Norway in 2015, Sweden and Finland in 2019 • Integrated access to deferred single payments of 3, 6 and 9 months. Upper credit limit of NOK 100,000 • Tailored for online purchases with relevant insurances and an attractive bonus model • Nominal annual interest rate 19.9%*/21.4% on purchases and 19.9%*/24.9% on cash withdrawals
Customers (thousands) Net loans (NOK million)
60 1 000
800 40 600
400 20 200
0 0 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
* Nominal annual interest rate in Finland 20 Point-of-sales finance solution being adopted by e-commerce partners
• Automated and fully integrated into e-commerce purchasing platforms, offering flexible and convenient payment methods and financing options • Offering includes pay-by-invoice, deferred payment, instalments and account purchases One-click • Stand-alone API-based solution opens up for third-party retailers, payment purchases service providers as well as in-app payments with invoice Full range of payment • Currently integrated into the Komplett Group’s payment platform “KomPay”, options in check-out, recommended to Post transaction available on Komplett’s Norwegian and Swedish websites customers based on up-/cross sales preferences and opportunities purchase history Customers (thousands) Net loans (NOK million)
100 500
80 400
60 300
40 200 Automated risk- and fraud-checks with 20 100 full BankID integration to enable efficient, customer friendly process 0 0 17Q418Q118Q218Q318Q419Q119Q219Q3 17Q418Q118Q218Q318Q419Q119Q219Q3
21 Deposit accounts provide funding
• High-yield savings accounts offered in Norway for amounts between NOK 50,000 and NOK 2,000,000
• EUR denominated deposits launched in 2018 in Germany for amounts between EUR 5,000 and EUR 100,000 per customer,
• Launch of SEK denominated deposits planned for 2019
• Deposits guaranteed by the Norwegian Banks’ Guarantee Fund (NOK 2,000,000 / EUR 100,000)
• Foreign denominated deposits will contribute to diversified funding base and lower funding cost Deposits (NOK million)
10 000 EUR
NOK 8 000 Tusener 6 000
4 000
2 000
0 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
22 Financial targets
CET1 target of 19.3% Capital adequacy Comprised of regulatory CET1 requirement of 18.3% + 1.0% management buffer
Above 20% return on equity Return on Equity Excluding non-recurring items Komplett Bank expects to meet the ROE target for 2019
Excess capital not deployed for growth purposes will be Dividend Policy distributed to shareholders
23 Operations
24 Digital business model ensures scalability and low cost operations
Digital native with centralised operations
Lean cross-border operations Data-driven communication Modern and flexible IT architecture
• Cross-Nordic operations out of one • Highly digitised customer onboarding • Cloud and API based infrastructure centralised location in Norway processes • Service oriented and modularised applications • • Bank permit enabling passporting Automated and personalised • Fit-for-purpose mix of in-house development of services to all EU countries multichannel communication and modern best-of-breed third party solutions • No branches, fully digital customer • Assessment of next best action interaction capabilities based on machine learning
25 Automated and personalised multichannel communication tools Advanced customer relationship management (CRM) methodology and -technology ensures customer lifetime value optimisation
Customised website communication synchronised with email- and SMS A/B testing to ensure high conversion rates and business goal optimisation messaging, based on automatically engineered engagement plans through effective front end-messaging and convenient user experience
New visitor website view Existing customer website view “Send application”: 12% conversion increase
Scroll-slider: 4% conversion increase
“Apply” banner click: 40% conversion increase
26 Customer evaluation tools with sound credit risk management procedures
Data sources Fully automated credit scoring model
Customer application form Enables high level of customisation and Third party credit information flexibility, tailored to different: Contingent Examples of • Customer segments existing Internal customer behaviour data approval data sources Tax- and salary data from tax authorities • Countries or rejection Debt-registers • Product types Real estate ownership data • Distribution channels
Continuous model improvements based on customer data and input sources
27 Highly automated and efficient customer onboarding processes
Consumer loan application process
Fully digital and automated Manual process* Automated* Manual
Know Your Credit Pricing and Revised Loan Customer and Document check & Fund worthiness conditional loan offer application Anti-Money budget review transfer evaluation offer & signing Laundering
from milliseconds to seconds same day payout
*Not necessary for all customers
28 Flexible multichannel distribution and customer acquisition platforms Direct channels
Brand- and conversion marketing
Mass-media marketing Performance marketing
Brand awareness Search engine marketing Brand preference Search engine optimisation Leads generation Affiliate marketing
Front ends
komplettbank.no | komplettbank.se | komplettbank.fi
Photo from Komplett Bank 2018 TV ad
29 Flexible multichannel distribution and customer acquisition platforms Indirect channels
Partner distribution
e-commerce partners Specialist loan brokers (agents)
Payment optimisation Yield / Risk optimisation Sales conversion Loyalty creation
Front ends
e-commerce partners | Loan broker platforms
Komplett.no payment platform, KomPay, with Komplett Bank point-of-sales finance solution
30 Financials
31 Improved lending growth, driven by Finland and Sweden
Growth in net loans (NOK million) Net loan growth distribution (NOK million)
260 231 19Q2 19Q3 886 205 113
8 28
-18 -7 663 655
595 -174 -185 570 Loans Norway Loans Finland Loans Sweden Credit cards Point-of-sales 515 finance 453 403 393 376 389 Impact of currency changes and forward flow (NOK million) 360 328 326 Loans Loans Loans Credit Point-of-sales Total 271 Norway Finland Sweden cards finance 242 249 Currency (FX) change - 47 8 0 1 56 187 Forward flow (FF) sales * -144 - - -37 - -182
59 19Q3 adj. loan growth -41 184 197 31 27 397
19Q2 adj. loan growth ** 4 253 121 26 9 413 15Q115Q215Q315Q416Q116Q216Q316Q417Q117Q217Q317Q418Q118Q218Q318Q419Q119Q219Q3
* Loans Norway and credit cards shown gross of loans sold in the quarter as part of the Bank’s forward flow agreement ** 19Q2 adj. loan growth restated in 19Q3 presentation 32 Increasingly diversified across products and markets
Total net loans (NOK million) Distribution of net loans end of Q3 2019 12% growth 9 000 Loans Sweden
Point-of-sales finance 8 000 Tusener Loans Norway Loans Finland 5% 7 000 9% Credit cards Loans Finland 6 000 Loans Norway 11% 47% Loans Sweden 5 000 Credit cards 4 000 28% Point-of-sales finance 3 000
2 000
1 000
0 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
33 Stable income and growing customer base
Total income (NOK million) Number of customers (thousands) 9% growth
Loans Sweden
296 295 295 247 283 Point-of-sales finance 270 230 6 Loans Finland 214 245 209 5 Credit cards 3 4 220 179 208 Loans Norway 95 2 84 181 153 75 77 173 Deposit customers 1 50 129 148 29 1 22 24 110 13 19 20 14 17 94 98 2 12 10 82 8 52 53 6 50 51 2 48 48 43 47 38 39 35 46 49 47 47 50 50 50 39 42 42 45 20 24 7 7 8 8 9 11 12 13 14 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
247,000 customers at the end of Q3 2019. The forward flow agreement has impacted customer growth for Loans Norway and Credit card segments from Q2 2018.
34 Cost improvements driven by reduction in non-recurring costs
Operational expenses (NOK million) and cost ratios* (%) 140 70% • OPEX NOK 106 million ‐ Q2 2019: NOK 128 million incl. NOK 18 million AML fee
120 18.0 60% AML admin fee • Non-recurring costs of NOK 6 million ‐ External support related to implementation work following Marketing 100 50% the FSA report Other ‐ External support in investigating strategic opportunities
80 40% Depreciation ‐ Provision related to a supply agreement
Admin • Cost/Income*: 35.9% (37.3%) 60 30% * Personnel • Cost/Income excl. marketing : 28.8% (29.3%)
40 20% Cost/income ex marketing* Cost/income* 20 10%
0 0% 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
* C/I ratios adj. for NOK 18 million AML administrative fee in Q2 2019 35 Stable loan loss ratio and loan provisions
Past due (days) at end of quarter Quarterly loan loss ratio (LLR)** (%)
20% 70% 4.7 % 18% IAS 39 IFRS 9 IAS 39 IFRS 9 60% 4.0 % 16% 3.9 % 3.9 % 3.8 % 3.7 % 14% 50% 3.6 % 3.7 % 3.3 % 12% Q3 2017 adj. for 40% 2.9 % NPL one-off sale 10% 30% 8%
6% 20% 4% 10% 2%
0% 0% 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
PD 31-60 PD 61-90 PD 90 + Coverage Ratio* • IFRS 9 Accounting standard contributes to volatility in losses on loans ‐ Q1 2018 and Q2 2018 were impacted by positive IFRS 9 effects ‐ Q3 2018 was impacted by negative IFRS 9 effects • Q3 2017 LLR has been adjusted to remove one-off effect from sale of NPL portfolio
*Coverage ratio = total impairments of loans/ gross defaulted loans **LLR = Quarterly losses on loans / Average net loans over the period 36 Loan losses slightly increased
Break-down of Q3 2019 losses on loans
• Increase of losses in stage 1 and stage 2 primarily from growth in new markets, as these products have higher provisioning rate level compared to Norway • Quarterly model parameter updates result in a NOK 4 million additional loss provision • Ongoing process on forward flow contract expected to close during Q4 2019 • Loss given default (LGD) remains unchanged in Q3 2019 compared to Q2 2019
Break-down of Q2 2019 losses on loans Model parameter Stage 1 Stage 2 Stage 3 Other* updates Total 6.9 0.3 34.5 30.7 6.1 78.5
*Other comprises of realised losses on loans, including deceased customers, fraud and effects arising from derecognising loans sold as part of the Bank’s forward flow agreement or other NPL sales 37 Quarterly profitability impacted by continued capital build-up
Profit after tax (NOK million) Annualised ROE* (%)
Adj. for AML admin fee Adj. for NPL sale 96.9 92.2 87.6 29.7% 30.0% 30.2% 79.4 80.5 75.1 76.4 26.1% 25.9% 72.9 71.5 25.4% 18.0 21.4% 20.9% 56.8 18.8% 52.0 18.5 % 18.1%
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
• ROE in graph has been adjusted for NPL sale in Q3 2017 and AML admin fee in Q2 2019
*ROE = 4 x Profit after tax in the quarter / (quarterly average total equity – quarterly average AT1 capital) 38 Stable yields and funding costs
Yields (%) Lending
25% • Stable yields for consumer loans and credit cards – new markets are slightly lower on yields than loans in Norway • High yield for Point-of-sales finance driven by commission 20% 20.3 % income
Funding 15% 14.8 % • Decreased deposit yield in the quarter due to increased diversification 10% ‐ SEK deposits to be launched in the end of Q4 2019 ‐ Funding cost of EUR/SEK deposits approximately half of Norwegian level 5%
1.6 % Placements 1.3 % 0% • Available funds are placed in liquid assets with low risk, 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 dominated by bank deposits, government securities and covered bonds Yield - credit cards Yield - liquidity Yield - deposits Yield - loans
39 Well capitalised with solid profitability and capacity for AT1 and T2
Regulatory capital structure (%)
23.8% 22.8% 0.8% • The CET1 ratio grew to 22.5% in Q3 19 (Q2 19: 22.0%), well above the 21.5% 0.5% 2.0% Bank’s financial target of 19.3% 2.0% 1.5% ‐ The targeted capital has been adjusted to 19.3% (incl. mgmt. buffer), from 1.5% 1.0 % 19.2% in Q2 2019 ‐ Targeted capital has been adjusted to account for increase in countercyclical capital buffer requirement from 2.0% to 2.5% from 30 September 2019
22.5 % (Sweden) and 31 December 2019 (Norway) and a more diversified portfolio 18.0 % 18.3 % • At Komplett Bank’s 2019 AGM, the board was authorised to raise up to NOK 400 million in additional Tier 1 or Tier 2 capital
Capital requirement Targeted capital Reported capital as of Q3 2019 as of Q3 2019 as of Q3 2019
CET1 Mgmt buffer AT1 T2
40 APPENDIX
41 Profit and loss
Full year Q3 2019 Q3 2018 YTD 2019 YTD 2018 Amounts in NOK million 2018 Net interest margin* (%) Interest income 322.6 289.9 949.4 788.9 1,100.4 Interest expenses -40.2 -40.3 -128.0 -100.9 -141.3 13.6 % Net interest income 282.4 249.6 821.4 688.0 959.1 13.0 % 12.9 % 12.7 % 12.7 % 12.5 % Income commissions and fees 42.5 41.6 129.1 104.9 148.2 12.0 % 11.9 % Expenses commissions and fees -28.2 -20.3 -77.3 -55.5 -74.2 11.7 % 11.7 % 11.7 % Net commissions and fees 14.3 21.4 51.8 49.4 74.1
Net gains / losses (-) on certificates and bonds, -2.0 -0.8 -0.5 -2.3 -1.8 and currency 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 Total income 294.7 270.2 872.7 735.2 1,031.4
Salary and other personnel expenses -33.5 -24.8 -100.5 -79.2 -109.1 General administrative expenses -45.8 -47.1 -140.1 -126.1 -170.4 Earnings per share (NOK) Direct marketing expenses -20.9 -31.1 -73.1 -83.5 -107.2 Total salary and admin. expenses -79.3 -71.8 -240.6 -205.3 -279.5 0.62 0.56 0.51 0.45 Ordinary depreciation -14.3 -7.8 -38.9 -20.2 -28.7 0.41 0.43 0.43 0.43 0.44 0.38 Other expenses -12.2 -6.6 -62.7 -20.2 -31.0 0.35 Total operating expenses excl. lossses on loans -105.9 -86.3 -342.2 -245.7 -339.2 Losses on loans -81.8 -83.0 -232.6 -176.0 -249.0 Pre-tax operating profit 107.1 100.9 297.9 313.4 443.1 Tax expenses -26.6 -25.8 -79.7 -79.2 -112.0 Profit after tax 80.5 75.1 218.3 234.2 331.1 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
EPS adjusted for AML administrative fee in Q2 2019 Earnings per share (NOK) 0.44 0.43 1.20 1.35 1.91
* Net interest margin (NIM) = 4 * (Net interest income / Average interest-bearing assets excl. certificates and bonds) . NIM 19Q1 and 19Q2 are restated in 19Q3 presentation 42 Balance Sheet
Amounts in NOK million 30.09.2019 30.06.2019 31.12.2018 30.09.2018 Liquidity and funding Assets Loans and deposits with credit institutions 1,145.2 1,313.5 1,232.4 1,095.4 600% Net loans to customers 8,361.4 8,090.4 7,844.3 7,455.7 500% 1,197.4 1,150.8 436.4 437.0 Certificates and bonds 400% Other intangible assets 124.9 118.7 96.0 80.7 300% Deferred tax assets - - 39.5 - 200% Fixed assets 18.3 17.4 1.7 1.6 Other receivables 24.7 7.0 10.4 9.9 100% Total assets 10,872.0 10,697.8 9,660.7 9,080.2 0% 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
Equity and liabilities Liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) Deposits from and debt to customers 8,754.8 8,431.9 7,365.6 6,908.7 Senior unsecured bond - 231.0 399.8 399.6 Other debt 125.7 148.8 100.0 100.1 Deposit coverage* (%) Subordinated loans (Tier 2) 64.8 64.8 64.7 64.7 Deferred tax 40.1 13.6 - 78.8 Tax payable 23.7 23.7 110.8 10.0 104% 105% 93% 94% 91% 91% 87% 89% 92% Total liabilities 9,009.2 8,913.8 8,040.9 7,561.9 79% 83%
Share capital 182.8 182.8 172.7 171.5 Share premium reserve 786.7 786.7 771.9 771.9 Other paid-in equity 44.9 45.7 42.2 38.9 Retained earnings 803.8 724.3 588.4 491.6 Additional Tier 1 capital 44.6 44.6 44.6 44.6 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 Total equity 1,862.8 1,784.0 1,619.8 1,518.4 Total equity and liabilities 10,872.0 10,697.8 9,660.7 9,080.2
*Deposit coverage = Deposits from and debt to customers / net loans to customers 43 Solid investor base
Top 20 shareholders* Management and Board of Directors ownership Shares Shares Share options # Shareholder % Role Name (thousand) (thousand) (thousand) 1 CANICA INVEST AS 35,747 19.4 % Director Legal & HR Wilhelm B. Thomassen 1,960 211 2 STATE STREET BANK AND TRUST COMP 15,005 8.2 % CMO/CIO Steffen Ryengen 1,550 568 3 ALFAB HOLDING AS 10,971 6.0 % Director Credit Cards Eirik Holtedahl 641 29 4 DNB NOR BANK ASA 8,122 4.4 % CEO Jan Haglund 560 657 5 NORDA ASA 5,265 2.9 % Director loans and POS Enok Hanssen 130 108 6 UBS AG 5,205 2.8 % CFO Henning Fagerbakke 118 52 7 MACAMA AS 4,913 2.7 % CCRO Annika Dolve 50 121 8 SANDEN AS 4,706 2.6 % COO Christina Pedersen 32 274 9 BNP PARIBAS SECURITIES SERVICES 4,014 2.2 % CCO/CRO Eivind Bagås 1 49 10 GOLDMAN SACHS INTERNATIONAL 3,985 2.2 % Board of Directors 346 224 11 OM HOLDING AS 3,956 2.2 % Total 5,387 2,293 12 DIRECTMARKETING INVEST AS 3,415 1.9 % 13 FONDSAVANSE AS 3,269 1.8 % 14 SEB PRIME SOLUTIONS SISSENER CANOP 3,000 1.6 % 15 SNIPTIND INVEST AS 2,790 1.5 % Shareholders geographical distribution 16 BMA INVEST AS 2,676 1.5 % 17 TORSTEIN INGVALD TVENGE 2,500 1.4 % 4% 3% 18 KHAYA AS 2,371 1.3 % Norway 19 DINGJA INVEST AS 1,960 1.1 % United States 6% 20 URSULF AS 1,833 1.0 % 10% Sum top 20 125,703 68.4% United Kingdom Other shareholders 58,144 31.6% Total 183,847 100.0% Luxembourg Shares held by management and the BoD 5, 387 2.9% Other 77%
*Shareholder list updated as of 18 October 2019 44 Ambition to increase sales through own distribution
Net consumer loan growth sales channel distribution
13% 20% 17% 16% 26% 31% 29% 35% 35% 39% 46% • 50% of total sales generated through own 37% 39% distribution 44% 28% 34% 44% 24% 29% 21% 28% • Significant share of sales to existing customers 25% • Higher direct sales in Norway than Sweden and Finland 50% 44% 45% 40% 41% 40% 39% 36% 36% 39% 29%
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 New customer Existing customer New customer Indirect Channel Direct Channel Direct Channel
45 Past due (days) at end of quarter
20% 70% IAS 39 IFRS 9 18% 60% 16%
14% 50%
12% 40% 10% 30% 8%
6% 20%
4% 10% 2%
0% 0% 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3
PD 31-60 PD 61-90 PD 90 + Coverage Ratio
Coverage ratio = total impairments of loans/ gross defaulted loans, LTM = Last 12 Months, Average net loans (LTM) = (Net loans at beginning of LTM + Net loans at end of LTM)/2 46