Mandatum (MANTA) investor relations material

Executive summary

• Capital-light profit before taxes rose 35% year-on-year to EUR 26.8 million, driven by strong fee growth and client asset inflows, reflecting successful strategic focus.

• Group profit before taxes was EUR -25.9 million, impacted by a one-off EUR 36.2 million negative effect from a change in discount rate assumptions and weak investment returns.

• Client assets under management (AUM) increased 10% year-on-year to EUR 15.4 billion, with net flows of EUR 248 million.

• Solvency II ratio improved to 203% from 169% at year-end, mainly due to the sale of Saxo Bank shares, strengthening the capital base.

• Organic capital generation per share was EUR 0.10, exceeding earnings per share of EUR -0.02.

Financial highlights

• Fee result increased 10% year-on-year to EUR 20.6 million, supported by higher client assets and activity.

• Net finance result dropped to EUR -46.8 million, mainly due to the discount rate change and weak investment returns.

• Cost/income ratio improved to 49% year-on-year, indicating enhanced operational efficiency.

• Return on equity was -3.5% (down from 12.4% y/y).

• With-profit investment return was -0.6% for the quarter, below expectations.

Outlook and guidance

• Fee result for 2026 is expected to increase from 2025; with-profit portfolio expected to decrease further.

• Capital-light profit growth is on track with the long-term target of over 10% annual growth by 2028 compared to 2024.

• Financial performance will depend on client behavior, asset allocation, competition, and market conditions.

• Market conditions improved in April and May, supporting AUM recovery.

• Discount rate changes and market movements expected to create volatility in net finance results.