Market announcement

Title

Proposed changes in the Management Boards of LHV Group and LHV Pank

Message

AS LHV Group announces that AS LHV Pank intends to implement changes in its
organizational structure with the aim of moving towards an international bank
with modern product-led management, increasing the scalability of operations,
and supporting the bank's long-term growth. The changes are based on long-term
trends affecting the banking sector, including digitalization, automation, and
growing international competition. The changes are also planned to be reflected
in the composition of the Management Board of LHV Group.

Product-led management

The main change in the organizational structure is the transition from the
current functional and client-segment based management model to a product-led
organization. As a result of the change, LHV Pank's retail banking will be
replaced by four product areas: banking platform, investment products, loan
products, and customer experience.

This structure allows for bringing product development, technology, risk
management, and business responsibility under the management of a specific
product area, creating clearer responsibility for product development and
results. The product areas will have their own development resources. In a
product-led management organization, it is possible to accelerate the
development and delivery of products to customers and to improve the overall
customer experience. The change helps to bring decision-making authority and
responsibility significantly closer to product development and customers.

In addition to these major changes, other smaller changes will be made to LHV
Pank's organizational structure. The changes will be implemented gradually
during 2026, with the first changes taking effect on June 1. The organizational
changes in LHV Pank will not result in any changes to the current financial plan
of LHV Group.

Proposed changes in the Management Boards

Due to the planned changes mentioned above, the Supervisory Board of LHV Pank
intends to decide on the recall of the Head of Retail Banking Annika Goroshko and
the Head of IT Jüri Heero from the Management Board of LHV Pank, effective as of
1 June 2026. The Supervisory Board of LHV Group intends to decide on the recall
of the Head of IT Jüri Heero from the Management Board of LHV Group, effective
as of 1 June 2026.

Comment from Mihkel Torim, Chairman of the Management Board of LHV Group:

LHV has always been innovative and forward-looking. The world around us is
changing faster than ever before, and we must change with it to continue to be
the best choice for our clients and partners. The new, product-led structure
moves decision-making and responsibility to where value is created - to product
development. This is important step in our long-term strategy to grow as a
technology-based and international financial group. I would like to thank Annika
and Jüri for their dedication and contribution, which have helped LHV get to
where it is today.

Comment from Erki Kilu, Chairman of the Management Board of LHV Pank:

Banking is changing rapidly. To be successful in the future, we must build LHV
more around products, technology, and scalable platforms - more like a modern
financial technology company and less like a traditional bank.

I am very grateful to Annika for her contribution to the development of LHV Pank
and the management of retail banking. Under her leadership, LHV Pank has
strengthened its position among retail clients and further developed several
important services. Annika's professionalism, energy, and dedication have helped
ensure LHV Pank's stable growth in recent years.

Special thanks go to Jüri, whose contribution to the development of LHV is
difficult to overestimate. Jüri joined LHV in 1999 and has been part of LHV from
the very beginning. He created LHV's first systems. Under Jüri's leadership, we
started with the first LHV Pank products and building the team. His contribution
to the development of LHV over the past more than 25 years has been invaluable,
and he has a very important role in what LHV has become today.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's main subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus and LHV Bank Limited. The Group employs nearly 1,200 people. As of
the end of April, LHV's banking services are used by more than 500,000
customers, LHV-managed II pillar pension funds have over 105,000 active
customers and LHV Kindlustus provides insurance protection to 240,000 customers.
LHV Bank, a subsidiary of LHV Group, holds a UK banking licence and offers
banking services to international financial technology companies, loans to small
and medium-sized enterprises and retail banking services.

Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: [email protected]
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Communications
Paul Pihlak
Head of Communications
Email: [email protected]
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