Results of JSC "Freedom Finance" for the first quarter of 2024*

As of March 31, 2024, assets decreased by 26.5 billion tenge (8.4%) compared to December 31, 2023, amounting to 290.5 billion tenge. The reason is a decrease in the volume of securities in the trading portfolio by 26.6 billion tenge, or 12.5%, after locking in a positive result from previously purchased securities. Liabilities decreased by 27.5 billion tenge, or 16.7%, compared to December 31, 2023, and amounted to 137.2 billion tenge due to a reduction in the volume of direct REPO transactions by 27.4 billion tenge, or 17%. Equity increased by 957 million tenge, or 0.6%, compared to December 31, 2023, and amounted to 153.2 billion tenge. Net profit for the quarter ending March 31, 2024, decreased by 1.9 billion tenge, or 66.37%, compared to the net profit for the quarter ending March 31, 2023, and amounted to 956.8 million tenge. This is due to a decrease in: commission income from underwriting services – by 832.9 million tenge, or 60%; income from foreign exchange operations – by 130.8 million tenge, or 57%. As well as an increase in: expenses from the purchase and sale of financial assets – by 1.2 billion tenge, or 81%; other expenses – by 369 million tenge, or 48.73%. Effective management of the company's trading portfolio is reflected in the growth of net income from changes in the value of financial assets measured at fair value, by 16.26% – to 827.2 million tenge. Charter capital as of the end of the first quarter of 2024 – 98.5 billion tenge. The total number of client accounts as of April 1, 2024, exceeded 86 thousand. In the first quarter of the current year, 418 accounts were opened, and more than 240 thousand transactions were made. As of April 1, 2024, JSC "Freedom Finance" is the official market maker for 107 types of securities traded on the Kazakhstan Stock Exchange (KASE), and for 10 types – on Astana International Exchange (AIX). The company continues to maintain leadership in the KASE member activity ranking. For the first quarter of the current year, JSC "Freedom Finance" took first place in four market sectors: equity, debt, and government securities, REPO. During the reporting period, the company's share of the total number of transactions on KASE was: stocks – 54.56% (in US dollars), 12.36% (in tenge); government securities – 42.98% (in US dollars), 1.29% (in tenge); corporate bonds – 28.61% (in US dollars), 8.87% (in tenge). The company showed the following results for transactions from January to March 2024 on AIX from the total share: stocks – 35.54% (in US dollars), 26.86% (in tenge) and corporate bonds – 15.86% (in US dollars), 48.53% (in tenge).

Freedom Finance Global in the 2024 fiscal year** showed the following results:

Assets of Freedom Finance Global at the end of the 2024 fiscal year amounted to $224.4 million, an increase of 219%, due to the growth in cash and cash equivalents on the company's accounts by $126.9 million, or 523%, and an increase in the volume of securities in the trading portfolio by $22.9 million, or 74%. Liabilities, compared to the same indicator a year earlier, increased by $55.6 million, or 168%, amounting to $88.7 million, due to an increase in the volume of direct REPO transactions by $25.9 million, or 115%, and dividends declared payable to a shareholder. Equity as of March 31, 2024, amounted to $135.7 million, increasing by 265% over the year due to the growth in retained earnings for the reporting period. The total net profit for the reporting period amounted to $173.1 million, demonstrating a growth of 539% compared to the same indicator a year earlier, largely due to an increase in interest income by $245.8 million, or 665%. Over 75 thousand accounts were opened in the company in the 2024 fiscal year, and more than 11 million transactions were conducted. The total number 

of accounts as of April 1, 2024, exceeded 178 thousand, with more than 20.1 million transactions with securities conducted.

In October 2023, the Committee of the Astana International Financial Center "Astana" on Financial Services Regulation (Astana Financial Services Authority, AFSA) decided to entrust Freedom Finance Global with a pilot project for organizing retail investor access to options trading on the stock market in Kazakhstan. In January 2024, the company launched this service.

In November 2023, AFSA expanded Freedom Finance Global's license to perform regulated activities, supplementing it with a license to manage a Collective Investment Scheme.

In December 2023, Freedom Finance Global was the first in Kazakhstan to undergo regular mandatory certification as a Qualified Intermediary – an authorized tax agent of the Internal Revenue Service (IRS).

During the IPO of Air Astana, Freedom Broker, during the subscription period (from January 29 to February 6, 2024), received and submitted more than 7,800 applications totaling $131 million. This represents the largest volume among Kazakh participants in the deal, accounting for 27% of the total demand in the Kazakhstan market, which exceeded $483 million. Applications were submitted from 7,500 unique clients.

In accordance with the decision of the Board of Directors of Freedom Holding Corp. (FRHC), the sole shareholder of Freedom Broker, to cease interaction with Belize-based Freedom Securities Trading Inc. (FSTB) (formerly FFIN Brokerage Services Inc.), the migration of clients with active accounts in Freedom Finance Global was successfully carried out. Clients of FSTB were also given the option to independently choose migration to one of the brokerage companies of FRHC, including Freedom Finance Global.

As part of the integration of AIX into the digital exchange hub Tabadul, created by the Abu Dhabi Exchange (ADX) to facilitate inter-exchange trading, Freedom Finance Global was recognized and accepted as a broker for the Tabadul Hub from Kazakhstan. This collaboration enhances liquidity and simplifies trading mechanisms for investors, providing access to securities on AIX and ADX.

Note:

* Key financial indicators from the separate financial statements of JSC "Freedom Finance" (unaudited) as of March 31, 2024. ** For the company, the fourth quarter of the 2024 fiscal year ended on March 31, 2024. JSC "Freedom Finance" provides its clients with brokerage services on KASE and AIX, market maker services to maintain quotations of securities, organization of debt and equity financing, and financial consulting services. Freedom Finance Global is a broker with new capabilities, specializing in serving retail investors. The company is registered in the AIFC, has a license from AFSA, and operates under elements of English law. Clients of Freedom Finance Global have direct access to exchange operations on international financial markets (NYSE/NASDAQ, London Stock Exchange, HKEX, Frankfurt Stock Exchange), KASE, and AIX, as well as the most popular and in-demand service of the holding - participation in initial public offerings (IPOs). The companies are part of the international investment group Freedom Holding Corp. The holding's shares have been listed (since October 15, 2019) on the Nasdaq Capital Market under the ticker FRHC. The activities of Freedom Holding Corp. are regulated by the Securities and Exchange Commission (SEC, USA).

Contacts for the media:

Ramina Fakhrutdinova – Advisor to the Chairman of the Board of Directors for PR at JSC "Freedom Finance"

E-mail: [email protected]