Revenue Engine · ARR basis

Base-case projection · Q4 2025 → Q4 2035

ETF lifecycle — AUM trajectories & category probabilities

Balanced base case. Probabilities must sum to 100%. AUM in €M, per ETF, conditional on category.

Assumptions Total 100.0%

Category Probability AUM Y0 (€M) AUM Y1 (€M) AUM Y3 (€M) AUM Y5 (€M) AUM Y8 (€M)

Under-Performer AUM reaches 0 by Year 5 (liquidation). Over-Performer, Performer and Flat-Performer remain active through Year 8 and beyond (AUM held flat after Y8).

AUM trajectory per category

Year 0 is the quarter the ISIN goes live. The revenue engine interpolates linearly between these milestones quarter by quarter for each cohort.

ISIN pipeline — KVG types & market penetration

Bottom-up model: grow KVG partnerships linearly to a target share of the European KVG market. Each partner is assigned a type (Large / Mid / Small / Mini) by probability, each type issues ISINs at a baseline annual rate that compounds per partner year-over-year.

KVGs signed at target
Cumulative ISINs by Q4 2035
Ø ISINs per KVG (Q4 2035)
Active ISINs (post-liquidation)
After Under-Performer liquidations (Y5)

KVG types Total 100.0%

Type Probability ISINs per year (baseline)
% compounded yearly, applied to every KVG's baseline rate

Default baseline: Large 8, Mid 4, Small 2, Mini 1 ISINs/year. With 10% growth a Large issuer produces 8.0 ISINs in Year 1, 8.8 in Year 2, 12.8 in Year 6, 18.9 in Year 10.

Markets & penetration

Each enabled market contributes its own KVG ramp starting from its entry year. Linear mode: arithmetic progression (start fraction 1.0 = flat, <1 = ramp up, >1 = front-loaded). Power mode: cumulative power curve (shape 1.0 = linear, >1 = slow start, <1 = fast start). Two-phase mode: fast flat ramp to Phase 1 share, then slower flat ramp to final Target share — models "land-grab then saturation". Signings aggregate across all enabled markets.

Cumulative KVGs signed (by type)

Cumulative ISINs issued (by type)

Revenue projections — ARR basis

All revenue figures on an Annual Run-Rate basis — the annualised fee book at the end of each quarter. Technology + MM fees apply to every active ISIN; PM fees apply only to the share of ISINs where NaroIQ also provides portfolio management (attach rate, default 60%). Minimum-fee floor per ISIN per year.

Technology layer Default: 4 bps · €40k min
Fee rate
bps of AUM
Minimum fee per ISIN
€ / year
ETF portfolio management Default: 2 bps · €20k min · 60% attach
Fee rate
bps of AUM
Minimum fee per ISIN
€ / year
% of ISINs with PM
%
Market making (MM) Default: €30k flat
Flat fee per ISIN
€ / year
No AUM-based fee
flat per ISIN
ARR · Q4 2035 (terminal)
ARR · Q4 2030 (mid-period)
Active ISINs · Q4 2035
Aggregate AUM · Q4 2035

ARR trajectory — fee stack by quarter

Each bar is the annualised run-rate fee book at the end of that quarter (tech + PM stacked).

ARR at year-end (Q4) by category

Active ISINs & aggregate AUM

ARR at year-end

Year (EoY) Active ISINs Aggregate AUM (€M) Tech ARR (€) PM ARR (€) MM ARR (€) Total ARR (€) YoY ARR growth % @ min fee

"% @ min fee" = share of active ISINs whose AUM is below the AUM-fee / min-fee breakeven (€100M with default pricing). Below that threshold, minimum fees apply per ISIN per year.