Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698058855394.pdf (Liberia)
Debt Investor Presentation January 2022 Iceland and the Icelandic Economy Economic Foundations are Strong Attributable to sound economic policies in the past decade • • • • • Pre-pandemic, government debt to GDP was at its lowest point in a decade and despite pandemic effects Iceland’s debt to GDP ratio is still among the lowest in OECD countries Iceland‘s net international investment position at ISK 1,299bn or 41% of GDP and has not been as favorable in fifty years and continues to rise GDP growth of 5% expected in 2021 and forecast to be 5.1% in 2022 Covid recovery well on its way with 90% of inhabitants (12 years and older) fully vaccinated and 36% received the 3rd shot Pension funds hold the majority of assets in the Icelandic financial system, having surpassed banks in 2014 NIIP – lender to the world Development of major components / ISK billions 3,000 2,000 1,000 0 -1,000 -2,000 5 1 - c e D 6 1 - r a M 6 1 - n u J 6 1 - p e S 6 1 - c e D 7 1 - r a M 7 1 - n u J 7 1 - p e S 7 1 - c e D 8 1 - r a M 8 1 - n u J 8 1 - p e S 8 1 - c e D 9 1 - r a M 9 1 - n u J 9 1 - p e S 9 1 - c e D 0 2 - r a M 0 2 - n u J 0 2 - p e S 0 2 - c e D 1 2 - r a M 1 2 - n u J 1 2 - p e S Net foreign position Debt obligations Other investment Direct investment Securities Currency reserves Pre-pandemic debt/GDP not lower in a decade Government debt % of GDP The Icelandic financial system at 30.06.21 Assets as % of GDP 188% 141% 100 80 60 40 20 0 Jan-11 Total debt % of GDP Net debt % GDP Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Sources: Central Bank of Iceland, Iceland Chamber of Commerce, Statistics Iceland 22% 28% 30% 33% Former Housing Finance Fund Central Bank of Iceland Winddown assets Brokerages, Investment companies Banks Pension Funds 1 Post-pandemic economy is taking off Impact of Covid-19 milder than initially forecasted • • • • • While Iceland’s largest export sector, tourism, was hit by the pandemic, other exports sectors remained strong, Iceland’s current account balance remains positive
 Labour market is flexible with unemployment returning to pre-pandemic levels, as tourism gains more momentum.
Labour shortages may occur as output gap closes Inflation peaked at 4.8% YoY in October, forecasted to taper off to target 2.5% at YE 2022 CB lowered key interest rates from 3% at year beginning 2020 to 0.75% at year end 2020 with three raises in 2H 2021 due to persistent inflation and increased economic activity 4.8% 5.0% 9.2% 3.5% 5.7% Unemployment returning to pre-pandemic levels % of workforce on monthly basis 17.8% Part-time benefits Unemployment • Current rate in January 2022: 2.00% Corporates and households used the economic upswing to pay down debt, low debt burden plays a pivotal role in supporting the post-pandemic economy 0 2 - .
n a j 0 2 - .

b e f 0 2 - .

r a m 0 2 - .

r p a 0 2 .

y a m 0 2 n u .

j 0 2 .

l u j .

0 2 g u a 0 2 - .

p e s 0 2 - .

t k o 0 2 .

v o n 0 2 .

c e d 1 2 - .

n a j 1 2 - .

b e f 1 2 - .

r a m 1 2 - .

r p a 1 2 .

y a m 1 2 n u .

j 1 2 .

l u j .

1 2 g u a 1 2 - .

p e s 1 2 .


t c o Tourism suffers a hit while other exports remain strong Goods and services export / ISK billions Tourism Seafood Other exports Energy % of GDP 300.5% Corporate and household debt at sustainable levels 1,500 1,000 500 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 256.7% 239.7% .

% 8 9 4 1 .

% 9 6 0 1 210.7% 192.7% .

% 7 2 1 1 % 9 7 9 .

.


% 9 0 0 1 % 8 1 9 .

.

% 2 6 3 1 .

% 5 3 0 1 .

% 3 5 8 1 .

% 2 5 1 1 Corporate debt Household debt 168.8% 157.5% 159.6% 164.3% 157.1% 173.5% 173.2% % 0 9 8 .

% 8 9 7 .

% 8 2 8 .

% 7 4 7 .

% 1 5 8 .

% 5 4 7 .

% 6 9 8 .

% 6 4 7 .

% 0 3 8 .

% 1 4 7 .

% 4 9 8 .

% 2 4 8 .

% 5 7 8 .

% 7 5 8 .


Sources: Central Bank of Iceland, Iceland Chamber of Commerce, Statistics Iceland 2 Covid in Iceland Death rate in Iceland below average in 2020 and 2021 Deviation from mean cumulative deaths* per year in Iceland *Deaths per 100.000 population.
Source: Icelandic National Registry, Statistics Iceland 3 Regulatory Environment • The Icelandic financial system is governed by the Central Bank of Iceland and the Financial Supervisory Authority of the CBI (the FSA) • Iceland, together with Liechtenstein, Switzerland and Norway (the EFTA States), is a party to the EEA Agreement by which the EFTA States participate in the internal market of the EU.
Iceland is therefore obligated to implement certain EU instruments with EEA relevance, including legislation relating to financial markets • Kvika’s capital management framework is based on CRD IV, Kvika uses the standardized approach to calculate capital requirements for credit risk, market risk and operational risk • The provisions of the BRRD have been implemented into Icelandic law, including provisions for the implementation of Minimum Requirement for own funds and Eligible Liabilities (MREL) in Iceland.
The CBI is in the process of collecting data in preparation for decisions on institution-specific MRELs and aims to evaluate Kvika´s MREL classification and requirements in 2022.

4 3 An Introduction to Kvika Banki hf.
An Overview of Kvika Diversified financial services Kvika Insurance Asset Management Commercial Banking Investment Banking • • Insurance Investments Key Offerings • Private Banking • Fund Management • Private Equity • Institutional Investors • Corporate lending • Specialised lending • Consumer lending • Payment solutions • Capital Markets • Corporate Finance • Kvika UK • TM Insurance • Kvika Asset Management Through Key Brands • Kvika Bank • Kvika Bank • Lykill • Netgíró • Aur • Framtíðin • Auður Diversified income across segments Net operating income by segment / Q3 and YTD 2021* Q3 16% 22% YTD* €39m Q3: ISK 5.9bn YTD*: ISK 15.4bn €102m 34% 43% 26% 25% 19% 15% Insurance Commercial banking Asset management Investment banking and other 36.4% RoTE at 2021 9M 340 Employees Kvika banki hf.
is the parent company of Kvika Group, a financial conglomerate with four main operating segments *’TM Insurance and Lykill are not included in Q1 6 Strong profits and revenue generation Return on weighted tangible equity of 36.4% 9M 2021 Income Statement 2021 9M 9M 2021 / ISK millions Net interest income Net fees and commissions Net premiums and claims Net financial income Income from associates Other income 9M 2021 9M 2020 2,928 5,094 2,922 4,110 (28) 396 1,328 4,329 0 352 (11) 80 Net operating income €102m 15,423 6,077 Operating expenses (7,686) (4,004) Net impairment Reval.
of cont.
consideration 160 (40) (228) (312) Pre-tax profit €52m 7,857 1,533 Income tax Special bank taxes 1 198 (91) (96) (100) After-tax profit €53m 7,965 1,337 Earnings per share (EPS) Diluted EPS 2.07 2.01 0.70 0.65 Profit before tax* PBT development / ISK millions €62 million 9M: ISK 9,375 million 3,624 3,232 TM Insurance Kvika 2,973 2,167 2,520 1,518 806 1,002 1,638 1,121 517 Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Return on equity (%) Kvika TM Insurance Weighted RoE 36.4% 24.9% 24.0% 24.2% 21.0% 26.5% 20.8% 16.9% 13.0% 14.2% 15.7% 10.2% 5.3% 2017 2018 2019 2020 2021 2021 • TM Insurance is part of Kvika’s consolidated financial statements as of 31 March 2021 • Kvika’s profit before tax for 9M 2021 is ISK 7,857 million with return on weighted tangible equity (RoTE) 36.4% (ISK 9,375 million should TM Insurance be included since year-start) • Currently above track in achieving anticipated cost synergies from merger, these amounted to annualized ISK 1,084 million in 9M 2021 • Earnings forecast for 2021 updated from PBT 8,600 – 9,600 million to PBT 9,800 – 10,300 million ISK **Calculations changed to return on tangible equity (ROTE) after the merger with TM Insurance.
The reason being the increased amount of intangible equity (approx.
80% of total) created due to rise in share price from the announcement to execution *TM Insurance merged with Kvika on 31.03.21 ROE ROTE** 7 History of Successful Buy and Build Strategy Significant value creation from successful execution of a clear strategy Phase I Phase II 2015-2020: Asset management consolidation Key goals: operational synergies from economies of scale 2019-2021: Refinancing of lending platforms Key goals: financial synergies from strong funding base Buy and build strategy 2015 2017 2018 2019 2019 2020 2021 2021 MP Banki and Straumur merge under the name Kvika Kvika acquires Virðing and ALDA Asset Management Kvika acquires 15% share in Ortus Secured Finance Kvika acquires GAMMA Capital Management Consolidation of Kvika’s asset management operations The Boards of Directors of Kvika, TM and Lykill approved the merger of the three companies Increased focus on fintech platforms Heads of terms to acquire majority share of Ortus Secured Finance Rationale: Asset management operations have natural economies of scale where increases in AuM and revenues incur minimal additional costs Rationale: banks are naturally more efficient owners of loan portfolios than smaller lenders.
8 Kvika Today Significant growth since Nasdaq listing in 2019 Market cap development Shareholder development 6th largest market cap as of 15 November 2021 / ISK billions From First North listing to 15 November 2021 671 317 249 160 150 €901m 136 87 86 76 71 63 61 58 52 43 40 40 3000 2500 2000 1500 1000 500 <50,000 shares 50,000-500,000 shares >500,000 shares 2,687 Shareholders Market median year end 2020: 808 28 27 17 0 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20 Feb-21 Jul-21 Revenues 2018 – 9M 2021 / ISK millions 5,705 7,426 8,666 Shareholders 15.11.2021 €102m 15,423 Pension funds Investment funds Banks and insurance companies Private holding companies Private individuals 12.8% 18.2% 7.7% 39.4% 2018 2019 2020 9M 2021* 21.9% *’Revenues from TM Insurance and Lykill included from 01.04.21 and onwards 9 Group Management Managing Directors and organisational chart Marinó Tryggvason CEO Ármann Þorvaldsson Deputy CEO Ragnar Dyer CFO Ólöf Jónsdóttir COO Lilja Jensen General Counsel Magnús Einarsson MD Commercial Banking Bjarni Þrastarson MD Investment Banking Sigurður Viðarsson CEO TM Insurance Hannes Hrólfsson CEO Kvika Asset Management Board of directors Internal Audit Anna Jónsdóttir CEO Marinó Tryggvason Deputy CEO Ármann Þorvaldsson Risk Management Thomas Jensen Legal Lilja Jensen Compliance Erna Jónsdóttir Commercial Banking Magnús Einarsson Investment Banking Bjarni Þrastarson* TM Insurance Sigurður Viðarsson Asset Management Hannes Hrólfsson Finance Ragnar Dyer Operations and Development Ólöf Jónsdóttir TM Insurance and Kvika Asset Management outsource various financial and operational tasks to Kvika through outsourcing agreements *Currently MD of Capital Markets, pending MD of Investment Banking 10 Legal structure Significant subsidiaries Kvika banki hf.
Bank / Regulated in Iceland Commercial Banking Investment Banking TM tryggingar hf.

Insurance / Regulated in Iceland Kvika eignastýring hf.
Asset management / Regulated in Iceland Kvika Securities Ltd.* Financial Services/ Regulated in the UK Two of Kvika‘s four business units, as well as Kvika’s UK operations, are operated in independent subsidiaries, offering further risk diversification Each of the subsidiaries have their own board of directors who are independent of the Group and operates each entity on the basis of a shareholder policy set by Kvika *Kvika Securities Ltd. is Kvika’s UK subsidiary.
KSL is authorized by the UK FCA to provide investment management and corporate finance services.

Focus on capital raising and M&A Advisory as well as asset management services, HoT signed to acquire property backed lender Ortus Secured Finance.
11 Insurance Consistently profitable operations • • • • TM Insurance became a subsidiary of Kvika following a merger in Q1 2021 Insurance services have proven to have a resilient business model due to their naturally counter cyclical operations, as investment income is generally countercyclical to claims activity Strong digital strategy, only Icelandic insurer to offer all private lines online with full automation as well as an app where customers can report claims and receive compensation using self-service, resulting in 49% of claims being filed outside of business hours TM Insurance has a long track record of delivering consistently good returns from investment activities, 11.4% on average over last eleven years Market share (%) / 9M 2021 TM Sjóvá VÍS Vörður 19% 22% 29% 30% Premiums by business lines ISK millions / 9M 2021 Property 3,880 Marine Motor General liability Accident and health Life Total 1,338 7,365 €111m 16,676 1,249 1,995 849 Investment portfolio ISK millions / 9M 2021 Cash and term deposits 3,282 Governm.
& mun.
bonds 6,215 Asset backed bonds Other bonds Loans to customers Listed equities and funds Unlisted equities Other Total investments 8,097 3,956 388 5,104 €227m 34,256 3,852 3,361 12 Asset Management Significant external and internal growth over last 5 years • • • • Strategic focus on building a profitable asset management operation by a combination of internal and external growth, a buy and build strategy resulting in Kvika’s asset management operations merging in a single company in 2019 Strategically placed to compete successfully in a growing market, taking advantage of significant economies of scale Focus on providing customers with a broad range of services for investment domestically as well as in foreign markets Divestment of closed-end funds under management in 2021 9M offset an ISK 85bn organic growth in the period, resulting in a net decrease in AuM Private banking Fund management Private equity Institutional investors Assets under management (AuM) 31.12.12 – 30.09.21 / ISK billions Accumulated external growth Accumulated internal growth 53 69 75 111 121 527 €3.4bn 512 445 291 263 AuM by service offering 30.09.21 Private Banking Fund Management Private Equity Institutional Investors 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 30.09.21 Breakdown of funds managed: 52% 21% 14% Dom.credit 21% 6% 11% Fixed Income 52% 8% Real Estate 7% 5% 4% 3% For.Credit For.
Securities Equities Other 13 Commercial Banking Tailored financing and retail lending platforms Loan book to total assets Comparison to domestic banks / 30.09.21 • • Focus on solving specific needs for selected customer groups through differentiated brands Niche corporate lending and tailored financing are offered through the Kvika brand, specialized consumer platforms through other brands • Well secured and diversified loan book • • Leveraging infrastructure and utilizing fintech Increasingly diversified deposit financing with Auður – the only dedicated online savings platform in Iceland Focus on returns on allocated capital • Specialised services offered through specific brands 29,7% 25,7% Bank 1 74,3% 33,4% Bank 2 66,6% 70,3% 20,0% Bank 3 80,0% Other assets Loans to customers Online only Corporate lending Vehicle and equipment financing Retail savings platform Additional/bridge mortgages “Buy now pay later“ Mobile payments 14 Investment Banking Combination of three successful business units Corporate Finance • corporate Traditional services, and mergers, acquisitions, valuations and transaction structure, debt and capital raises etc.
divestments finance • Emphasis on mid-sized projects that generate a stable revenue base with high likelihood of completion in addition to larger projects with significant success fees Projects by type 30.09.20 – 30.09.21 2% 5% 29% 6% 58% Capital Markets • Equity and fixed income trading in all products, securities, ETFs, swaps, options and other derivatives • • Equity and fixed income advisory and issuance of new securities Foreign exchange trading, further opportunities through online FX brokerage platform Market share Nasdaq Iceland FY 2020 18,1% 17,5% 18,8% 13,8% 14,8% 11,4% 5,6% Sell-side advisory Debt and equity raise advisory Various Buy-side advisory Listing of financial instruments Kvika Arion banki Landsb.
Íslandsb.
Fossar ACRO Others Kvika UK • UK subsidiary launched in 2017 • Authorized by the UK FCA to provide investment management and corporate finance services • Heads of terms signed to acquire majority share in property lender Ortus Secured Finance, for further information see Appendix I • Expected to be reported separately once revenues grow Operational highlights 30.09.21 €130m 20bn 4 Value transacted in Corporate Finance Investment vehicles under management €5m 700m Revenues 2021B €1m 150m PBT 2021B *In the Group’s financial reporting, treasury and proprietary trading are included in Investment Banking’s segment reporting.
However.

the units are a part of Kvika’s finance department.
15 Kvika’s Sustainability Journey Reflecting the Group’s core value of long-term thinking Kvika Environmental Reporting into its Annual ESG Reporting implemented Impact Kvika started working with the Icelandic Wetland Fund to bind part of its GHG emission through reclamation of wetlands published Kvika Financing Framework, with a second party opinion from Sustainalytics first Green its Kvika has been UNICEF in Iceland´s main partner in the field of banking services since 2011 Kvika is also a benefactor of its World Parents program FrumkvodlaAudur grant fund established.
The Fund encourages young women to entrepreneurial activities and actions Kvika is a founding member of IcelandSIF, which contributes to increasing investor´s knowledge of sustainable investments Kvika´s Incentive Fund founded, whose role is to and encourage support young people to and vocational teacher education Kvika published its first annual ESG report, for 2019, based on Nasdaq´s ESG reporting guide – The Kvika started working with Kolvidur Icelandic Carbon Fund to bind part of its GHG emission through forestry Kvika obtained an equal pay certification from Iceland´s Ministry of Welfare Kvika became a signatory member of the UN PRI ‘Future savings’ green deposit accounts for children launched under Kvika’s Green Financing Framwork Kvika completed its first green bond offering under the Green Financing Framework Kvika completed Iceland’s first electronic registrar registration (is.þinglýsing) of a car loan, signaling Kvika’s dedication to new and sustainable digital operating practices 2009 2011 2017 2018 2020 2021 2008 Kvika Asset Management launched its first of four private equity funds.
The funds are active investors that encourage portfolio companies to corporate adopt governance and consider environmental issues in their day-to-day operations show CSR, good 2017 Kvika became a member of Festa – Center for Sustainability, an organisation that encourages co- operation and actions in CSR Reitun ESG score: 83/100 Domestic average: (67/100) Kvika established a policy on Corporate Social Responsibility 2019 Subsidiary TM Insurance becomes a strategic partner to nonprofit organization the Arctic Circle Kvika becomes a sponsor of Grænvangur 2020 Kvika implemented a digital solution to monitor, measure and publish its CO2 footprint Kvika published a Code of Conduct for Suppliers Kvika signed a Joint Declaration of Intent – Investment for a Sustainable Recovery, along with the Icelandic Government and parties controlling close to 80% of assets in the Icelandic financial market Kvika established policies on responsible lending and investment, and on responsible product and service offering Kvika underwent an ESG Risk Assessment conducted by Reitun – Iceland for the first time Kvika established a Committee on Sustainability to oversee and be responsible for enforcing the Bank´s CRS policy, and the position of a Director of Sustainability 16 Sustainability Going Forward Focus areas in 2022 Kvika is dedicated to building knowledge and creating value through sustainability, by engaging its partners and stakeholders to work together in financing projects that have a real and measurable impact on the transition to a carbon neutrality Goals and targets Information disclosure Risk, infrastructure, commitments and legislations Innovation, products and services Carbon footprint and ESG ratings Kvika is in the process of adopting UN Development Goals that align with the Group´s policy and operations.
The work will continue in 2022 along with continued integration of Kvika´s sustainability goals through action plans Kvika plans to publish its first Sustainability Report in 2022 for the year 2021, following Nasdaq´s ESG guidelines and considering certain GRI indicators.

In 2023 Kvika will prepare a Sustainability Report in accordance with The GRI Core Standard.
Deloitte will provide a limited assurance on Kvika’s Sustainability Report Further integration of ESG into risk management processes, such as considering the Task Force on Climate-Related Financial Disclosure (TCFD) recommendations when identifying and sharing sustainability risks and opportunities.
Kvika will strengthen sustainability infrastructure and governance, supporting adherence towards commitments such as the UN PRI as well as compliance with legislations that will come into force in Iceland in the next 1-3 years (EU Taxonomy, SFDR and the CSRD) Exploring new business opportunities and innovate in the field.
Kvika strives to have a positive impact on the environment and communities through its product and service offering and with effective collaborations such as the Q4 2021 signing of a declaration of intent between Kvika, Kvika Asset Management (KAM) and Klappir Green Solutions to prepare a feasibility study on establishing a Sustainable Forestry investment fund, with the aim of accelerating the transition to a carbon neutral society by selling verified carbon units domestically Follow up on monitoring carbon emissions in scope 3 (Kvika already monitors scope 1 and 2).
That includes the carbon footprint of the Group´s investment and loan portfolio (using the PCAF) and of suppliers.

Work on ways to further reduce the environmental impact of Kvika´s operations, as well as offset carbon emissions.

Continue ESG rating process of Kvika’s and Kvika Asset Management’s investment and loan portfolios Sustainability embedded in governance structure Sustainability is embedded in the Group´s governance structure and throughout business operations.
In April 2021 Kvika expanded the Sustainability Team by establishing a new position of a Director of Sustainability and formalizing a CSR & Sustainability Committee that operate across Kvika´s units and subsidiaries with a coordinated approach to sustainability Sustainability embedded in vision and goals An updated business strategy and 3-year goals were recently published following detailed strategy work carried out by management in collaboration with key stakeholders.
Sustainability is one of the cornerstones of the Group's strategy and goals as well as being one of the Group’s strategic guides in all decision making.
3-year goal Having a real and measurable effect on Iceland’s carbon footprint and climate issues in general 17 Capital Position and Requirements Capital positions well above regulatory requirements CAR and solvency 30.09.21 / ISK billions Risk weighted exposure = 91 billion €601 million Capital adequacy ratio 91 * 32.4% = 29 Reg.min = 91 * 20.6% = 19 29 T2 19 Solvency ratio 15/10 = 1.54 Reg.min = 1.00 15 10 Solvency ratio 44/28 = 1.56 Reg.min = 1.00 €294m 44 T2 €188m 28 Group excluding insurance Insurance Group Mininum regulatory requirement Total own funds including unaudited retained earnings • Following the merger with TM Insurance in 2021 the Financial Supervisory Authority of the Central Bank designated the Group as a financial conglomerate.
As a result, the Group's capital adequacy is now calculated as the solvency ratio of the financial conglomerate • The regulatory minimum solvency ratio requirement is 1.00 • The regulatory minimum capital adequacy ratio for the Group (excluding insurance operations) is 15.1% and including supervisory buffers 20.6% • If unaudited Q3 profit is not included, the solvency ratio would be 1.51 and capital adequacy ratio would be 30.8% 18 Capital Position and Requirements Capital Adequacy Ratio high net of requirements 28.8% 1.6% 27.2% 14.0% 3.0% 2.5% 4.0% 4.5% 32.4% 1.6% 3.6% 27.2% 20.6% 3.1% 3.5% 3.0% 2.5% 4.0% 4.5% CET1 ratio CET1 requirement Capital ratio Capital requirement CET1 capital T2 capital Pillar I capital requirement Capital conservation buffer CET1 capital from unaudited Q3 profit Pillar II capital requirement Systemic risk buffer • The capital adequacy ratio (“CAR”) is calculated at a group level excluding entities which belong to the insurance sector • CET1 capital ratio is 28.8% (ISK 26.1bn) compared to regulatory requirement of 14.0% → CET1 buffer of 14.8% corresponds to ISK 13.4 billion • Total capital ratio is 32.4% compared to regulatory requirement of 20.6% → CAR buffer of 11.8% corresponds to ISK 10.7 billion • Tier 2 issuance amounts to ISK 3.3 billion or 11% (3.6%/32.4%) of CAR • The Pillar 2 requirement is at 7.1% based on SREP 2019 results • If unaudited Q3 profit is not included , the CET1 ratio would be 27.2% and CAR would be 30.8% • Countercyclical buffer will increase from 0.0% to 2.0%, effective as of 29 September 2022 19 Assets Balance sheet growth post merger Assets ISK billions Cash and balances with Central Bank Financial Instruments Loans to customers Intangible assets Unsettled transactions Other assets 123.2 28.9 53.5 29.3 3.6 0.6 7.3 31.12.2020 €1.6bn 234.3 15.3 90.0 69.5 32.0 6.0 21.5 Cash and financial instruments 30.09.21 / ISK billions €554 million Liquid assets ISK 84 billion 15.3 Cash and balances with CB 32.0 Listed gov bonds 11.6 Listed bonds 24.7 Listed shares 21.7
 Unlisted bonds, shares and unit shares Loan book by customer type ISK billions €461m 69.5 40.6 60% 28.9 40% Legal entities Individuals 29.3 23.7 5.6 • Total assets of ISK 234.3 billion, nearly doubled since year-end 2020 driven by merger with TM Insurance and Lykill on 31st of March 2021 • Liquid assets amount to ISK 84 billion, 35% of total assets and 123% of deposits from customers • Securities for hedging total-return swaps amount to ISK 28.1bn and thereof ISK 19.3bn in listed shares • Loan book increase of ISK 40.2 billion since year-end 2020 • Loans to individuals approximately fivefold from year-start ISK 5.6 billion to ISK 29.0 billion • Loans to corporates increase by 71% from ISK 23.7 billion to ISK 40.6 billion 30.09.2021 31.12.2020 30.9.2021 20 Loans to Customers Risk diversification has increased significantly due to acquired portfolios Interest rates vary between loan categories and reflect the estimated loss risk at any given time, generally lowest in vehicle loans and highest in unsecured loans to individuals or investment and operational loans.
30.9.2021 / ISK billions Real estate development Real estate Lykill commercial vehicles and equipment Lykill vehicles • Construction level from land to fully equipped property • Real estate backed loans, mostly to legal entities • Average loan is ISK 67 million and lifetime 2.4 years • Collateralised by commercial vehicles or various kind of equipment • Borrowers generally businesses with a good track record • Average loan is just under • ISK 2m Loan period up to a maximum of 7 years €15m 2.2 3.3 4.1 7.4 6.9 9.4 8.3 €185m 27.9 Total €0.5bn 69.5 Framtíðin Netgíró / Aur Securities Investment and operational loans • • Second lien indexed mortgage loans to individuals Infrastructure that can facilitate growth • Unsecured loans to individuals • Proprietary algorithm-based credit system • Average loan size ISK 173k • Maximum APR regulated • Low defaults, lent to A, B and C class borrowers* • Loans against listed securities • Conservative margin call terms on the value of the underlying collateral • Loans against unlisted securities or cash flows at conservative levels • Generally carry the highest interest rates and tie up the most equity *Credit Score classification by Creditinfo Iceland, which rates individuals from A1 through E3 21 Loans to Customers Change in credit quality mostly due to merger Net carrying amount Gross carrying amount IFRS 9 risk stage allocation / ISK billions IFRS 9 risk stage allocation / ISK billions FVTPL Stage 3 Stage 2 Stage 1 68.1 3.3 3.1 7.6 67.8 2.2 1.4 8.2 €461m 69.5 2.1 1.6 5.8 FVTPL Stage 3 Stage 2 Stage 1 29.9 1.8 0.8 2.7 24.5 69.7 3.3 4.1 8.0 69.2 2.2 8.6 2.1 €469bn 70.8 2.1 6.2 2.4 54.3 56.3 60.2 54.0 56.1 59.9 29.3 2.7 1.7 0.7 24.2 31.12.2020 31.3.2021 30.6.2021 30.9.2021 Impairment loss allowance Expected credit loss / ISK billions Stage 3 Stage 2 Stage 1 0.5 0.2 0.1 0.3 1.6 0.9 0.4 0.3 1.4 0.8 0.4 0.2 €9m 1.3 0.8 0.3 0.2 • Change in credit quality mostly due to merger with Lykill (new financial assets) but improves quarter-on- quarter • Lykill’s loan portfolio as a vehicle and
 equipment lender was characteristically different from Kvika’s, both in terms of borrowers (individuals vs. legal entities) as well as number of loans and amounts lent • The net book value is calculated by subtracting the impairment loss allowance from the gross carrying amount 31.12.2020 31.3.2021 30.6.2021 30.9.2021 31.12.2020 31.3.2021 30.6.2021 30.9.2021 22 Loans to Customers Minimum Covid effects – mostly resolved Resources offered • In 2020 and 2021, Kvika (and the later acquired Lykill Financing) offered Covid related payment moratorium to borrowers its customers through the epidemic.
to support • • Kvika also granted government support loans The EBA’s Guidelines on Covid moratoria were phased out by the EBA in September 2021, at which point the remaining loans in covid moratoria moved to traditional forbearance Covid effects on loan book Kvika loan book / amount of loans in Covid moratorium of total loan book 30.9.2021 30.6.2021 31.3.2021 31.12.2020 30.9.2020 30.6.2020 100% 95% 95% 95% 88% 90% Covid resources provided Covid effects on loan book 31 March 2020 – 30 September 2021 Lykill loan book / amount of loans in Covid moratorium of total loan book 6 5 Borrowers currently in Covid-related forbearance Government support loans granted 37 296 Max no.
of borrowers in Covid moratorium Kvika Max no.
of borrowers in Covid moratorium Lykill 30.9.2021 30.6.2021 31.3.2021 31.12.2020 30.9.2020 30.6.2020 99% 94% 93% 93% 91% 5% 5% 5% 12% 10% 1% 6% 7% 7% 9% 85% 15% Non affected loans Covid moratorium 23 Liquidity and Funding Ratios Strong levels post debt repayments Liquidity coverage ratio (LCR) 30.09.21 / ISK billions Net stable funding ratio (NSFR) 30.09.21 / ISK billions High quality liquid assets Net outflow Liquidity coverage ratio Minimum regulatory requirement 34 20 171% 100% Available stable funding Required stable funding Net stable funding ratio Minimum regulatory requirement 129 111 116% 100% Liquidity coverage ratio (LCR) Change from 31.12.20 to 30.09.21 266% Available stable funding 30.09.21 (70%) 171% (25%) 100% Min.
regulatory requirement 3% 22% 1% 5% 27% 43% Capital Retail deposits Corporate deposits Financial deposits Debt Issuance Other facilities • HQLA assets ISK 34bn excluding mandatory reserves and collateral to the Central Bank • Liquidity coverage ratio strong at 171%, where the regulatory minimum is 100% • Excess liquidity and funding capacity was utilized to repay ISK 15.3 billion of Lykill’s debt in Q2 and Q3 • Lending and securities financing increased by ISK 5bn.
• Asset and liability management is aimed at maintaining stable funding sources such as core retail deposits and long-term funding via debt issuance • The Group’s capital remains the single largest funding source → Reflected by the bank’s 15.1% leverage ratio in Q3 31.12.2020 Repayments of Lykill’s debt Increased lending 30.09.21 24 Liabilities Healthy combination of deposits and various term debt Liabilities and equity ISK billions Maturity of deposits 30.09.21 €1.6bn 234.3 24.2 20.0 3.3 24.3 68.2 18.5 75.7 Debt issuance Borrowings Subordinated liabilities Technical provisions Deposits Other Equity 123.2 7.6 26.4 2.1 59.9 8.0 19.2 6.3% 2.1% 9.1% On demand 1-3 months 3-12 months > 12 months 82.6% €45m 6.8 Maturity of issuance 30.09.21 / ISK billions €88m 13.3 4.1 1.2 2.0 31.12.20 30.09.21 2021 2022 2023 2024 2025+ • Increase in liabilities and equity driven by merger with TM Insurance and Lykill which took place on 31st of March 2021 • Kvika issued ISK 7.8 billion of senior unsecured bonds in 9M 2021, including ISK 2.2 billion of 6-year inflation linked bond • Kvika repaid ISK 15.3 billion of Lykill’s debt in Q2 and Q3 • Borrowings at ISK 20.0 billion include money market financing and secured credit facilities • Technical provision of TM Insurance amounts to ISK 24.3 billion • Total deposits increased by ISK 8.3 billion from year-end 25 Liabilities Domestic debt funding Latest domestic issuances €13m KVIKA 24 1119 New issuance .
GBP 11.4 million Private placement 19 November 2021 Listed securities outstanding ISK millions Bonds Bills Subordinated 7,489 1,963 3,578 1,948 9,349 3,404 3,945 2,000 9,319 5,238 2,004 2,077 31.12.18 31.12.19 31.12.20 30.09.21 *Kvika’s issuance in GBP, other banks’ issuance in EUR **Increase in securities outstanding largely due to merger with TM and Lykill KVIKA 24 1216 First green bond €30m ISK 4.5 billion Closed auction 9 December 2021 KVIKA 32 0112 New issuance €13m ISK 2 billion Private placement 12 January 2022 €180m 27,122** 23,784 3,338 New Issuance in EUR and GBP* Bps over interbank rates 250 200 150 100 50 KVIKA 2/23 KVIKA 11/24 LBANK 5/24 ARION 5/24 ISB 11/20 LBANK 5/25 LBANK 5/26 ARION 7/25 0 0 2 - n a J 0 2 - r a M 0 2 - y a M 0 2 - l u J 0 2 - p e S 0 2 - v o N 1 2 - n a J 1 2 - r a M 1 2 - y a M 1 2 - l u J 1 2 - p e S 1 2 - v o N 2 2 - n a J • Kvika has been an active issuer in Iceland since 2015 and will continue to focus on domestic debt issuances as a key source of funding • ISK 27 billion of bonds outstanding at 30 September 2021 • Domestic issuances are generally in ISK, however, two recent issuances have been in GBP • Kvika sold its first green bonds in December 2021, in a closed auction which was significantly oversubscribed 26 Preparation of First Issuance in Europe Establishment of EMTN Programme Kvika has established its first EMTN programme, in preparation for entering European debt capital markets As a relatively small issuer in a European perspective, Kvika believes that a conservative strategy of phased growth, building relationships with funding partners and investors, will be a valuable first step into a market that will be important in funding Kvika’s future growth The EMTN programme was signed in December 2021, with a potential first issuance in 1H 2022 Notes under the programme will be listed on Euronext Dublin Q4 2021 EMTN preparation Dec 2021 Launch of EMTN programme 1H 2022 Potential first issuance under the programme 27 Kvika as a Borrower Comparison to domestic banks A
 more diversified income base than traditional banks Net operating income by segment / 30.09.21 Cost to income ratio 50% 47% 42% 38% 102% Loans to deposits 140% 143% 158% Asset encumbrance 21% 20% Liquidity coverage ratio 221% 225% 17% 171% 172% 11% 100% Reg.
min.

KVIKA ARION ISB LBANK KVIKA ARION ISB LBANK KVIKA ARION ISB LBANK KVIKA ARION ISB LBANK Net stable funding ratio Net stage 3 loans to tangible equity Capital adequacy ratio Return on (tangible) equity* 116% 118% 121% 118% 11% 32.4% 36.4% 100% Reg.

min.
9% 8% 4% 25.4% 24.7% 25.6% 20.6% 18.5% 17.8% 18.9% Thereof regulatory requirement KVIKA ARION ISB LBANK KVIKA ARION ISB LBANK KVIKA ARION ISB LBANK ROE ROTE** 20.2% 19.8% 18.2% 14.8% 14.4% 13.5% 13.6% ARION KVIKA *Before tax **ROTE estimated for other banks LBANK ISB 19% 27% 19% 34% 2% 10% 65% 23% Kvika*** Domestic banks**** Net premiums and claims Net interest income Net financial income Net fee and commission income ***TM Insurance is not included in Q1 due to merger on 31.03.2021 ****Simple average of other domestic banks 28 Key Takeaways • A highly diversified financial conglomerate • Strong market position in Insurance, Asset Management and Investment Banking.
Profitable Commercial Banking unit with growth opportunities • Very conservative liquidity and capital position • Well secured and diversified loan book • Low levels of encumbered assets • Highly profitable business with a relatively low dependence on balance sheet 29 Disclaimer This presentation and the information contained therein has been prepared by Kvika banki hf.
on a best knowledge basis and is not under any circumstances intended for public or any general distribution without Kvika banki hf.’s consent.

The presentation is for marketing purposes only.

Any statements or assumptions are set forth by Kvika banki hf.

alone and not by any third party.

The presentation is based on public information and documents which have been publicly published.

Kvika banki hf.
Kvika banki hf.

has done its best so that all information is as clear, precise, and accurate as reasonably possible but cannot guarantee the complete accuracy or completeness of the information set forth, whether it comes from Kvika banki hf.

or a third party.

The information in the presentation is of a general nature and does not take into account the financial status, investment plans or specific needs of the recipient.
The presentation shall not in any way be viewed as an investment advice or any other recommendation or solicitation to buy, hold or sell any security or to take any investment decision.

The recipient is solely responsible, going forward, for any investment decision made on the basis of the information in this presentation.

Investor protection is a priority of Kvika banki hf.
and recipients are encouraged to seek expert advice and to familiarize themselves with the various investment opportunities available and the risk associated with potential investments and other aspects of their personal circumstances, such as legal and tax issues.

This presentation contains figures that refer to the past.

Past performance is not a reliable indicator of future results.

Some figures are indicated in a foreign currency.

Return may increase or decrease as a result of currency fluctuations.
The presentation contains speculations on future performance.

Any such forecast is not a reliable indicator of future performance.

Any tax treatment of financial products depends on individual circumstances and is subject to change.

Kvika banki hf.

does not provide advice concerning tax issues.

Kvika banki hf.

does not assume any liability whatsoever for any direct or consequential loss or damage arising from any use of this presentation or its contents.

Kvika banki hf.
Kvika banki hf.

is not obliged to make amendments or changes to this publication or to submit further information, should errors be discovered or opinions or information change.

Copyright of this presentation and its contents is the property of Kvika banki hf.. No part of this presentation may be reproduced, distributed or copied in any manner without the prior written approval of Kvika banki hf.
The prohibition to reproduce, distribute or copy applies regardless of the nature of the information at issue and the purpose of the reproduction, distribution or copy.
The euro figures in this presentation have been translated from ISK to EUR using a fixed rate of EUR/ISK 150.9 which represents the official closing rate published by the Central Bank of Iceland on 30.9.2021 30 Confidential Appendix I Iceland and the Regulatory Environment Iceland • • • • • Iceland is an island, located in the North Atlantic next to Norway, Scotland and Greenland with a population of 368,7921 Iceland is a constitutional republic with a multi-party parliamentary system, executive power is vested in a cabinet headed by a prime minister and the president is the head of state Iceland, together with Liechtenstein, Switzerland and Norway (the EFTA States), is a party to the EEA Agreement by which the EFTA States participate in the internal market of the EU Iceland maintains a Nordic social welfare system that guarantees its citizens universal healthcare, education, and a high degree of social security.
The standard of education is high and public education is compulsory between the ages of 6 and 16 Iceland ranks first on the Global Peace Index and runs almost completely on renewable energy 1As of 01.01.21 33 3 Regulatory Environment EU adoption due to EEA agreement Kvika’s Regulatory Environment • Kvika’s operations are mainly subject to Icelandic laws and regulations • However, Iceland is a member state of the EEA and is therefore obligated to implement certain EU instruments with EEA relevance, including legislation relating to financial markets.
• Due to the nature of implementation and adaption into domestic law, implementation of EU instruments in Iceland generally happens 1-2 years after EU implementation • • The Icelandic financial system is governed by the Central Bank of Iceland (the CBI), an independent institution, operating under the Prime Minister and owned by the State.
The main objective of the CBI is to promote price and financial stability, along with keeping financial activities secure Following a new bill on the CBI, it merged with the Financial Supervisory Authority in January 2020 and therefore financial supervision is now part of the CBI’s role.
Capital Requirements • Kvika’s capital management framework is based on CRD IV, which is an EU legislative package consisting of Directive 2013/36/EU of the European and the Council on prudential requirements for credit institutions and investment firms dated 26 June 2013, as amended or restated from time to time (CRD IV) and Regulation 575/2013/EU (CRR).
Parliament • CRD IV and CRR were implemented into Icelandic legislation for the most part by amendments made to the Act on Financial Undertakings (Act on Financial Undertakings No.

161/2002) and with the Regulation on the Prudential Requirements for Financial Undertakings.

• the CBI In accordance with the Financial Supervisory (the FSA) regulation no.

Authority of 233/2017, Kvika uses the standardised approach to calculate capital requirements for credit risk, market risk and operational risk.
BRRD and MREL • On 2 July 2014, Directive 2014/59/EU providing for the establishment of an EU-wide framework for the recovery and resolution of credit institutions and investment firms (BRRD) entered into force.
• • • • The BRRD is marked EEA relevant in the Official Journal of should be the EU and thus incorporated into the EEA Agreement The provisions of the BRRD have been implemented into Icelandic law by means of a including legislative combination provisions for the implementation of Minimum Requirement for own funds and Eligible Liabilities (MREL) in Iceland acts, of The CBI is in the process of collecting data on the relevant credit institutions’ recovery plans, which the are currently in preparation, as a part of preparation for the CBI’s decisions on institution- specific MRELs.
The CBI aims to evaluate Kvika´s MREL classification and requirements in 2022.

It should be noted that Kvika has not been financial defined as a systematically important institution in Iceland.
34 Appendix II Ortus Secured Finance Ortus Secured Finance at a Glance Secured lending in UK bridging market Proven and reliable principal lender with a flexible offering of competitive funding solutions Highly competent team with proven track record Ortus was founded in 2013 to take advantage of large gaps left by traditional banks in the lending market following the global financial crisis.
Sizable player in a profitable market £130m total loan book to almost 130 borrowers with focus on short terms loans/bridge lending in the UK earning gross contractual yield of ~10%.

Highly conservative lending strategy All lending secured against property - over ISK 85bn advanced to borrowers since founding, with zero losses on capital.
Well known to Kvika since 2018 investment Kvika participated in 2018 capital increase to support development of balance sheet lending capabilities, acquiring 15% with a view to strengthen involvement over time.

Note: All amounts in ISK, converted at GBP/ISK = 175.
As of 30.09.21 London, Glasgow and Belfast Office locations €150m ISK 23bn Total loan book, including asset management mandates €560m ISK +85bn Lent out since founding 50% Historical average LTV of book 19 Members of staff across lending, sales, credit and finance 16.5 months Average loan term at drawdown ISK 0.0 Capital losses to date 100% Share of book secured against property 36 Strategic Rationale for Transaction Natural next step of 2018 acquisition of cornerstone stake 1.
Efficient lending engine and highly competent management team well known to Kvika 2.

Large growth potential, adding significantly to Group earnings 3.
Clear potential to leverage Group’s financial strength to lower cost of funding Strong track record of high-quality origination Loan book ISK billions €430m 65 €150m 23 Current 2025 target 1.0% to 2.0% Cost-of-fund reduction to 2025 €45m 7 2018 2013 First loan disbursed €560m + ISK 85bn Amount lent since founding ISK 0.0 Capital losses to date On balance sheet Under management Blended cost of existing funding Potential funding rate with Kvika ownership Profitabiliaty (PBT) ISK million €9m - €12m 1,400-1,820 Extension of previous acquisition strategy €0.5m 65 2018 €5m 703 2021B 2025 target Proven ability to boost profitability 37