EVLI PLC STOCK EXCHANGE RELEASE, APRIL 25, 2025 AT 2:00 PM (EET/EEST)

Evli Plc’s Interim Report January–March 2025

COMPARABLE NET REVENUE AND OPERATING PROFIT INCREASED

Highlights of the period

• Net subscriptions of traditional mutual funds amounted to EUR 262 million. Fund sales to foreign customers was EUR 94 million during the review period.
• Despite the challenging market environment, sales of alternative investment funds also performed well. Approximately EUR 70 million in new investment commitments were raised. Evli Private Equity IV fund raised approximately EUR 49 million in investment commitments and Evli Private Capital approximately EUR 21 million.

Financial performance January-March 2025 (comparison period 1–3/2024)

• Net revenue, after eliminating the impact from the corporate transaction, was EUR 27.7 million (EUR 25.8 million). Unadjusted net revenue was EUR 27.7 million (EUR 42.9 million).
• Operating profit, after eliminating the impact from the corporate transaction, was EUR 11.4 million (EUR 10.0 million). Unadjusted operating profit was EUR 11.4 million (EUR 25.1 million).
• The operating result of the Wealth Management and Investor Clients segment increased to EUR 10.1 million (EUR 9.6 million).
• The operating result of the Advisory and Corporate Clients segment increased to EUR 1.3 million (EUR 1.1 million).
• At the end of March, net assets under management amounted to EUR 19.0 billion (EUR 18.5 billion), including assets managed by associated companies. Assets under management excluding the associated companies amounted to EUR 16.7 billion (EUR 16.2 billion).
• Return on equity was 28.0 percent (35.8%).
• The ratio of recurring revenue to operating costs was 130 percent (125%).
• Earnings per share, fully diluted, were EUR 0.27 (EUR 0.79).

OUTLOOK FOR 2025

The second quarter of the year has had a turbulent start, and the environment is expected to remain uncertain and difficult to predict in 2025, with widening geopolitical risks and concerns about the sustainability of economic growth adding to market uncertainty. Global tariffs imposed by the U.S., followed by counter-tariffs imposed by the rest of the world, have increased fears of a global trade war. If this were to materialize, it would lower growth forecasts across the board and accelerate inflation. Due to the uncertain market environment, stock market volatility has increased, and market values have fallen. If investor confidence deteriorates further and market values continue to decline, it will have a negative impact on Evli's fee income and the return on its own investment portfolio.

Despite the challenging operating environment, Evli has succeeded in strengthening its position in the market. Growth has been supported by a wide product range and customer base. With a strong market position and growth outlook, we estimate the operating result to be clearly positive.

KEY FIGURES DESCRIBING THE GROUP’S FINANCIAL PERFORMANCE

* Dividend approved by the Annual General Meeting 2024. The dividend has been paid on March 27, 2025.

CEO MAUNU LEHTIMÄKI

The year 2025 began under exceptionally uncertain circumstances. The tariffs imposed by the United States cast dark clouds over the global economy. Forecasts regarding the impact of tariffs, retaliatory tariffs, and other potential trade restrictions on global trade, economic growth, private consumption, and inflation expectations are clearly negative. Should the worst-case scenario materialize, the U.S. could simultaneously face a recession and rising consumer prices, leading to stagflation. For all the U.S.’s significant trading partners – Mexico, Canada, South Korea, Japan as well as the European Union, and the United Kingdom – the U.S. import tariffs are detrimental and growth-slowing.

Even without the tariffs, indicators of the U.S. economy's state were weaker than expected at the beginning of the year. Consumer confidence fell to its lowest level in 12 years, the housing market deteriorated, and industrial production showed signs of slowing. Uncertainty was also brought to the economy by the numerous executive orders announced by President Donald Trump at a rapid pace in the early part of the year, resulting in cuts to funding across several sectors, reductions in public positions, and layoffs of civil servants.

In Europe, attention was focused on the U.S. administration's policies regarding support for Ukraine and its continuation, the initiated peace negotiations between Russia and Ukraine, the long-term security environment in Europe, and the development of transatlantic defense cooperation. Concerns arose in Europe about the U.S.'s commitment to European defense, prompting decisions between the EU and the United Kingdom to significantly increase defense investments in the coming years. This was reflected in strong share price increases among European defense sector companies. Many investors also revisited their responsibility criteria, as arms manufacturers have traditionally been excluded from investment portfolios. However, due to Russia's attack on Ukraine, arms manufacturers are increasingly being viewed as essential from the perspective of defending democracy, individual freedom, and peace.

During the first quarter, returns in the capital markets were strong in Europe, with equities delivering approximately five percent returns as measured by the STOXX 600 index. Returns on euro-denominated fixed-income investments were also slightly positive. European equities performed particularly well compared to U.S. equities, with the return differential for the quarter reaching historically high levels. The U.S. S&P 500 index declined by nearly five percent during the review period, and the technology-heavy NASDAQ composite index fell by as much as ten percent. Large technology companies, the so-called "Magnificent Seven," declined even more, with share price drops ranging between 10 and 40 percent. Last year’s major winners, such as Nvidia, driven by the artificial intelligence boom, and Tesla, which focuses on electric vehicles and autonomous mobility, were under particularly strong pressure.

Amid heightened uncertainty and volatile stock prices, gold strengthened to a new record high, while the U.S. trade-weighted dollar weakened. The euro appreciated approximately 4.5 percent against the dollar since the turn of the year.

Evli Group's net revenue, after eliminating the impact from the corporate transaction, increased by seven percent compared to the comparison period, rising to EUR 27.7 million (EUR 25.8 million). The best development was seen in traditional and private equity fund fees, advisory fees, and brokerage revenues, which grew significantly compared to the previous year. Returns from the Group’s own balance sheet items were also higher than in the previous year. Unadjusted net revenue decreased by 35 percent in the first quarter compared to the previous year, amounting to EUR 27.7 million (EUR 42.9 million). The comparability of the net revenue is impacted by the corporate transaction completed last year, in which the incentive business became an associated company of the Group and is therefore no longer included in the revenue figures during the review period.

The Group's operating profit for the first quarter, after eliminating the impact from the corporate transaction, increased by 15 percent to EUR 11.4 million (EUR 10.0 million). Unadjusted operating profit decreased by 55 percent to EUR 11.4 million (EUR 25.1 million). The comparability of operating profit is impacted by the corporate transaction completed last year, which included a nearly EUR 14 million valuation gain recorded during the comparison period. Additionally, the comparison period included significantly higher performance fees than the review period. Evli's return on equity for the quarter was 28.0 percent (38.5%), and the ratio of recurring revenues to operational costs was 130 percent (125%). The Group's solvency and liquidity remained at an excellent level.

The net revenue of the Wealth Management and Investor Clients segment declined by two percent in the first quarter, totaling EUR 22.8 million (EUR 23.3 million). Assets under management increased to EUR 19.0 billion (EUR 18.5 billion), driven by positive market performance and net subscriptions.

Evli Fund Management Company’s mutual fund capital, including alternative investment funds, amounted to approximately EUR 13.8 billion (EUR 13.4 billion). Net subscriptions in traditional mutual funds during the first quarter were approximately EUR 262 million. The largest net subscriptions during the quarter were directed to Evli's long-term fixed income funds, while equity funds and the money market fund Evli Liquidity saw net redemptions.

The net revenue of the Advisory and Corporate Clients segment decreased by 43 percent in the first quarter, amounting to EUR 2.8 million (EUR 5.0 million). The decline in revenue is due to the corporate transaction completed last year, in which the incentive business became an associated company of the Group and is no longer part of segment reporting. Advisory fees related to corporate transactions increased compared to the same period last year. The unit’s mandate base remains strong, and the corporate transaction market has been reasonably active in early 2025.

Evli's strategically important areas, international sales and alternative investment products, developed positively during the quarter. Net subscriptions from international clients amounted to approximately EUR 94 million, and the share of international clients in Evli's total fund capital, including alternative investment products, increased to 21 percent (18%). Net subscriptions and investment commitments in alternative investment products during the quarter totaled approximately EUR 70 million (EUR 45 million).

In terms of sustainability, Evli published its Corporate Responsibility Report as part of the Annual Report 2024, which for the first time followed the EU Corporate Sustainability Reporting Directive. As part of the Annual Report, Evli also published the first Taskforce on Nature-related Financial Disclosures report, which describes the nature-related risks, opportunities, dependencies and impacts of Evli's investments. Furthermore, Evli continued its work as an active member of the Nature Action 100 investor initiative, which aims to engage with 100 companies significant to biodiversity and nature loss and encourage them to take more ambitious measures to halt nature loss.

In 2025, Evli will celebrate its 40th anniversary. Our journey has been shaped by innovation, resilience, and a focus on building lasting relationships with our stakeholders. We are committed to providing excellent asset management in the future as well.

EVLI PLC

Additional information:
Maunu Lehtimäki, CEO, Evli Plc, tel. +358 (0)50 553 3000, maunu.lehtimaki@evli.com
Juho Mikola, CFO, Evli Plc, tel. +358 (0)40 717 8888, juho.mikola@evli.com

Evli in brief

We see wealth as an engine to drive sustainable progress. We draw on our heritage, broad expertise, and Nordic values to grow and manage wealth for institutions, corporations and private persons in a responsible way.

We are the best fund house in the Nordics¹ and the leading asset manager in Finland² offering a broad range of services including mutual funds, asset management and capital markets services, alternative investment products, equity research as well as Corporate Finance services. Responsible investing is integrated in every investment decision and our expertise is widely acknowledged by our clients. Evli has Finland's best expertise in responsible investment³.

Evli Group employs around 270 professionals and Evli has approximately EUR 19.0 billion in client assets under management (net 3/2025). Evli Plc’s B shares are listed on Nasdaq Helsinki Ltd. More information at www.evli.com.

¹ Morningstar Awards 2024 (c). Morningstar, Inc. All Rights Reserved. Awarded to Evli for the Best Fund House in Finland and Sweden. Lipper Fund Awards 2023, 2024, the category Small Fund Companies.
² Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021, 2022, 2023, 2024. Kantar Prospera Private Banking 2019, 2020 Finland.
³ SFR Scandinavian Financial Research Institutional Investment Services Finland 2021, 2022. Kantar Prospera External Asset Management 2017, 2018, 2019, 2020, 2023, 2024 Finland.

Distribution: Nasdaq Helsinki, main media, www.evli.com