IPAS Indexo (IDX1R) Status update summary

Strategic transaction, acquisition, and group structure

• Indexo plans to acquire over 62% of DelfinGroup, aiming for 65-70% ownership after voluntary and mandatory offers, with DelfinGroup remaining a listed company and shareholders able to swap shares or retain direct exposure and dividends.

• The transaction is designed to create a leading local financial group in Latvia, leveraging both companies' strengths and targeting profitability from closing and self-sustainability by 2026.

• Financial forecasts and consolidation assume 65% DelfinGroup ownership, with INDEXO issuing new shares for the swap.

• Synergies, especially from refinancing DelfinGroup's funding, are expected to generate €6–8M in additional profits by 2027, subject to regulatory approval.

• The combined group will benefit from a large, diversified customer base, increased market liquidity, and aims to reach up to 8% of Latvian households.

Financial performance and growth outlook

• The group expects to be profitable from closing, with DelfinGroup's dividend flow supporting self-sustainability and a target of over €30M net profit by 2028.

• Credit portfolio at closing will be close to €200 million, with a consolidated loan portfolio projected to exceed €770M by 2028.

• INDEXO's household loan market share is projected to reach 8% by 2028.

• DelfinGroup has consistently delivered high profitability and dividends, with a 23% YoY profit increase in the latest quarter.

• Lending growth is strong, with a 2.1x increase in net interest income in Q3 2025 compared to Q2.

Business lines, product development, and operational highlights

• Indexo's pension business has grown to over €1.5B AUM since 2017, with strong net profit and market outperformance.

• The bank has rapidly increased loan issuance, especially in mortgage refinancing, and surpassed 46,000 customers with €63.14M in deposits and €45.1M in loans as of October 2025.

• New products include home equity loans, custody business, junior accounts, and continuous improvements in lending, with additional mortgage, card, investment, and SME services planned.

• DelfinGroup operates in consumer loans, pawn loans, and retail of pre-owned goods, with Latvia as the main market and a credit portfolio grown from under €40M at IPO to over €140M.

• INDEXO offers higher deposit rates compared to major Latvian banks.