Leonteq Ag · SIX:LEON
Leonteq — Investor Presentation (April 2021)
49 slides from Leonteq's investor presentation, April 2021
Slide 1: Investor Presentation Leonteq AG
INVESTOR PRESENTATION LEONTEQ AG ZURICH, APRIL 2021
Slide 2: Disclaimer
DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, documents and information used therein or distributed in the context of this presentation do not constitute or form part of and shoul
Slide 3: Our Company
ote t LEONTEQ OUR COMPANY
Slide 4: Leonteq at a Glance
LEONTEQ AT A GLANCE Highlights Lifetime figures (2007-2020) • Leading fintech company from Switzerland • 13 offices across EMEA and APAC • B2B4C offering for > 1,000 clients (financial >200,000 CHF225bn intermediaries) investment products Turnover • Highly automated marketplace for structured invest
Slide 5: Our Offering in the Context of the Business Needs of Our Clients and Partners
OUR OFFERING IN THE CONTEXT OF THE BUSINESS NEEDS OF OUR CLIENTS AND PARTNERS Our clients Our solutions • Financial intermediaries which offer investment products to their clients (from retail clients to Fully automated click ’n’ trade multi-issuer institutional investors) platform • Current portfol
Slide 6: Our Key Differentiating Factors
OUR KEY DIFFERENTIATING FACTORS One of the leading Global distribution multi-issuer network across platforms EMEA, LATAM and APAC Highly scalable Dedicated and platform with large recognized computation power sales force Full white-labelling Automated processes across capabilities for services & str
Slide 7: Financial Highlights 2020 at a Glance
FINANCIAL HIGHLIGHTS 2020 AT A GLANCE Net fee income Net fee income by region Total operating income in CHF million 2020 in CHF million 10% 234.5 2019: 256.2 38% 334.6 Net profit 272.5 264.9 247.0 228.7 209.0 52% in CHF million 39.9 17.0 2008 … 2015 2016 2017 2018 2019 2020 Switzerland Europe Asia 2
Slide 8: Unique Pool of Experts in Technology and Structured Products
UNIQUE POOL OF EXPERTS IN TECHNOLOGY AND STRUCTURED PRODUCTS Staff base development Staff base by region Gender diversity in FTEs 19% women 14% 20% 519 510 508 486 Average age 463 440 361 65% 291 36 270 243 204 129 years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Switzerland Europe
Slide 9: Our Market
ote t LEONTEQ OUR MARKET
Slide 10: Low Interest Rate Environment and Digitisation Drive Demand for Tailored Investment Solutions
LOW INTEREST RATE ENVIRONMENT AND DIGITISATION DRIVE DEMAND FOR TAILORED INVESTMENT SOLUTIONS Global wealth (USD trillion)1 Global portfolio allocation2 Key drivers for increase in demand for tailored investment solutions: 1. Low interest rate environment CAGR +12% • With increasing wealth, need for
Slide 11: Global Footprint with 13 Offices Across EMEA and APAC
GLOBAL FOOTPRINT WITH 13 OFFICES ACROSS EMEA AND APAC Switzerland Europe Asia (incl. Middle East) • Holding company listed on SIX • Issuance and treasury entities in • Trading hub in Singapore • Head office and issuance entity in Guernsey • Sales offices in Dubai, Zurich • Trading hub in the Netherl
Slide 12: Our Operations in Switzerland: Total Addressable Market of Close to CHF 400 Billion
OUR OPERATIONS IN SWITZERLAND: STRONG PRESENCE WITH TOTAL ADDRESSABLE MARKET OF CLOSE TO CHF 400 BILLION (TURNOVER) SSPA1 SIX Swiss Exchange2 Leonteq market share2 (CHF billion, by product category) (CHF billion, by product category) CAGR +13% CAGR +8% 368 332 352 47 47 23 3 9% Market share 276 47 1
Slide 13: Our Operations in Italy: Total Addressable Market of Close to EUR 40 Billion
OUR OPERATIONS IN ITALY: GROWING PRESENCE WITH A TOTAL ADDRESSABLE MARKET OF CLOSE TO EUR 40 BILLION (TURNOVER) ACEPI1 – Primary issuance Borsa Italiana2 – Secondary market Leonteq market share2 (EUR billion) (EUR billion) CAGR +16% CAGR +1% 30 25 27 25 4 9% 22 2020 Market share 13 for listed invest
Slide 14: Our Business
ote t LEONTEQ OUR BUSINESS
Slide 15: Founded as Structured Products Expert in 2007, Leonteq Developed into a Leading Fintech Company
FOUNDED AS AN EXPERT IN STRUCTURED PRODUCTS IN 2007, LEONTEQ DEVELOPED INTO A LEADING FINTECH COMPANY Provider of investment solutions with a leading technology platform One of the largest universes of structured products with more than 2,000 underlyings, including major asset classes as well as fun
Slide 16: One of the Largest Universes of Structured Products with a Leading Technology Platform
PROVIDING ONE OF THE LARGEST UNIVERSES OF STRUCTURED PRODUCTS WITH A LEADING TECHNOLOGY PLATFORM >200,000 client transactions processed each year Equity Equities >100,000 indices documents generated each Currencies day Participation Credit Leverage Commodities Interest >2,000 underlying securities a
Slide 17: White Labelling Concept Enables Partners to Become Issuer of Structured Products
WHITE LABELLING CONCEPT ENABLES PARTNERS TO BECOME ISSUER OF STRUCTURED PRODUCTS Services offered by Leonteq Guarantee setup Full partner setup • Structuring • Issuer: Leonteq • Issuer: Partner • Pricing • Guarantor: Partner • Guarantor: Partner • Documentation Concept • Bond component: Leonteq • Bo
Slide 18: Selection of White-Labelling Partners on Leonteq's Multi-Issuer Platform
SELECTION OF WHITE-LABELLING PARTNERS ON LEONTEQ’S MULTI-ISSUER PLATFORM Cooperation Distribution Company Issuers Payoffs Rating started CH EMEA ASIA1 10.2012 EFG International Finance (Guernsey) All payoffs ✓ ✓ ✓ A2 Raiffeisen Switzerland 03.2013 Raiffeisen Switzerland, Amsterdam All payoffs5 ✓ ✓ ✓
Slide 19: LynQs Is Leonteq's One-Stop-Shop for Structured Products
LYNQS IS LEONTEQ’S ONE-STOP-SHOP PROVIDING CLIENTS DIGITAL ACCESS TO THE WORLD OF STRUCTURED PRODUCTS Investment ideas | Pre-trade AMC | Active management Latest trends and daily updated Single entry point to manage investment ideas prepared by index strategies and easy Leonteq’s leading structuring
Slide 20: Smart Hedging Issuance Platform (SHIP)
SMART HEDGING ISSUANCE PLATFORM (SHIP) ENABLES AUTOMATED PRICE SELECTION AND EXECUTION OF OPTION COMPONENT Benefits for the client • Only platform which allows to decouple the choice of the desired credit risk from the provider of the option component • Best option price out of seven leading investm
Slide 21: Savings and Retirement Solutions Platform (Omega)
SAVINGS AND RETIREMENT SOLUTIONS PLATFORM (OMEGA) ENABLES DIGITAL PROCESSING OF INSURANCE POLICIES Omega • Proprietary platform that Omega Portal / External guarantee enables the fully partner platform provider automated, digital processing of the entire lifecycle of insurance policies and capitalis
Slide 22: Innovative Savings and Retirement Solutions Platform Servicing 50,000 B2B4C Clients
INNOVATIVE SAVINGS AND RETIREMENT SOLUTIONS PLATFORM SERVICING MORE THAN 50,000 B2B4C CLIENTS Guarantee plan Drawdown plan • Savings plan for recurring premiums with • One-time financed drawdown plan with upside potential and guarantee at maturity guaranteed payments • Guarantee provider Raiffeisen
Slide 23: More Than 40 Industry Awards Since Inception
MORE THAN 40 INDUSTRY AWARDS SINCE INCEPTION Best products 2019 - 2021 Service, Platform & Performance 2019 - 2021 Best Index product (2020) Top Service (2019/2020) Best Product on alternative Underlyings (2019/2020) Best Market Maker Investment products (2020) Best Equity Product (2019) Best Struct
Slide 24: Our Progress and Priorities
OUR PROGRESS AND PRIORITIES 24
Slide 25: Significant Progress Achieved Over the Past Three Years
SIGNIFICANT PROGRESS ACHIEVED OVER THE PAST THREE YEARS March 2018 June 2018 September 2019 April 2020 June 2020 July 2020 August 2020 January 2021 March 2021 April 2021 Won Products SHIP Crypto with BlackRock App Quote Tender offer for Fully First currency SHIP investment funds as operational; 7 Ro
Slide 26: Clear and Focused Execution of Our Strategy: Achievements 2020
CLEAR AND FOCUSED EXECUTION OF OUR STRATEGY: ACHIEVEMENTS 2020 Smart Hedging Issuance Platform (SHIP) is up LynQs is becoming the one-stop-shop for and running – 7 investment banks connected structured products Balance sheet light turnover (CHF million) 895 1,017 464 182 H1 2019 H2 2019 H1 2020 H2 2
Slide 27: Clear and Focused Execution of Our Strategy: Priorities for 2021
CLEAR AND FOCUSED EXECUTION OF OUR STRATEGY: PRIORITIES FOR 2021 Add new pay-offs and product features and Go-live of pricing module, white-labelling features add at least one white-labelling issuer to SHIP and integration of AMC client portal to LynQs SHIP-enabled payoffs 2019 2020 2021E Autocallab
Slide 28: Our Performance
ote t LEONTEQ OUR PERFORMANCE
Slide 29: Attractive Offering and High Quality Service Resulted in Growing Volumes
ATTRACTIVE OFFERING AND HIGH QUALITY SERVICE RESULTED IN GROWING VOLUMES Platform assets (CHF billion)1 Turnover (CHF billion) CAGR CAGR +28% +18% 14.7 14.1 30.3 28.8 26.8 26.4 11.4 11.9 9.2 20.9 18.7 18.6 7.6 7.9 14.5 5.3 10.4 11.7 3.1 3.3 6.9 7.8 0.7 2.8 1.3 3.5 2008 2009 2010 2011 2012 2013 2014
Slide 30: Scalability Enables Significant Growth of Products Managed on the Platform
SCALABILITY ENABLES SIGNIFICANT GROWTH OF PRODUCTS MANAGED ON THE PLATFORM Structured products issued (thousand) Outstanding insurance policies (thousand)1 CAGR CAGR +32% +43% 36.6 51.6 32.2 47.2 28.4 41.2 26.6 20.9 33.4 26.8 14.4 23.6 12.7 19.1 10.1 13.2 6.5 8.0 1.2 1.8 1.0 3.3 6.3 2.0 3.0 2008 200
Slide 31: Historic Revenue Development Since Inception
HISTORIC REVENUE DEVELOPMENT SINCE INCEPTION Quarterly Economic Revenues (in CHF million)1 90 80 70 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Economic revenues are defined as sales and trading income earned and are considered as recognized at trade date w
Slide 32: Improved Profitability in H2 2020
IMPROVED PROFITABILITY IN H2 2020 Total operating income (CHF million) Net profit (CHF million) Re-establishment of solid track record Negative Covid-19 impact Restructuring years Negative Covid-19 impact 51 37 40 30 33 34 146 136 132 22 6 131 119 125 1 115 100 104 88 -20 H1 H2 H1 H2 H1 H2 H1 H2 H1
Slide 33: Significant Investments in Key Initiatives and Talent Whilst Keeping Cost Base Under Control
London SIGNIFICANT INVESTMENTS IN KEY INITIATIVES AND TALENT WHILST KEEPING COST BASE UNDER CONTROL Total operating expenses (CHF million) Nearshoring initiative Lisbon, Portugal 95.7 97.0 98.7 99.2 • Good progress in establishment of service centre in Lisbon 93.4 94.1 • Phase 1 (since H1 2020): ser
Slide 34: Solid Balance Sheet Driven by Own Issuance, Liquid Hedging Positions
SOLID BALANCE SHEET DRIVEN BY OWN ISSUANCE, LIQUID HEDGING POSITIONS AND HIGH QUALITY INVESTMENT PORTFOLIO Assets (CHF billion) Liabilities (CHF billion) 12.4 12.4 Cash & receivables 1.3 2.3 Short-term credit & liabilities Trading equities & indices1 3.6 4.9 Own structured investment products4 Finan
Slide 35: High-Quality Investment Portfolio with CHF 2.5 Billion at End-2020
HIGH-QUALITY INVESTMENT PORTFOLIO (Ø AA RATING) WITH CHF 2.5 BILLION AT END-2020 By credit rating By type of investment By accounting measurement 6% 18% 20% 28% 31% 35% 34% 30% 72% 33% 47% 46% Governments & Supranationals Fair value through profit and loss Aaa Aa1-Aa3 A1-A3 Baa1-Baa3 Governments & S
Slide 36: Strong Build-Up of Capital Base and Launch of Conservative Dividend Policy
STRONG BUILD-UP OF CAPITAL BASE (EQUITY + DEFERRED FEE INCOME) AND LAUNCH OF CONSERVATIVE DIVIDEND POLICY Shareholders’ equity (CHF million)1 Deferred fee income (CHF million)1 663 107 608 648 76 75 376 416 385 418 42 36 46 158 27 32 125 4 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014
Slide 37: Swiss Regulatory Framework Applicable to Leonteq
SWISS REGULATORY FRAMEWORK APPLICABLE TO LEONTEQ • On 01 January 2020, the Financial Institutions Act (FinIA) and the Financial Institutions Ordinance (FinIO) entered into New regulatory force in Switzerland. framework • FinIA regulates the licensing requirements and further organizational rules for
Slide 38: Leonteq's Capital Position and Dividend Policy
LEONTEQ’S CAPITAL POSITION AND DIVIDEND POLICY AGM 2018 AGM 2019 AGM 2020 AGM 2021 AGM 2022 AGM 2023 onwards Target to reach Minimum Capital CHF 464m CHF 683m CHF 769m CHF 723m CHF 800m area2 CHF 800m base1 (at end-2017) (at end-2018) (at end-2019) (at end-2020) (at-end 2021) area2 No dividend for N
Slide 39: Summary
ote t LEONTEQ SUMMARY
Slide 40: Competitive Position Structurally Benefitting from the Low Interest Rate Environment
WE HAVE A COMPETITIVE POSITION AND ARE STRUCTURALLY BENEFITTING FROM THE LOW INTEREST RATE ENVIRONMENT Global wealth (USD trillion)1 Market turnover Switzerland (CHF billion)2 Leonteq market share3 CAGR +12% CAGR +13% 3 9% Market share 2020 for total listed structured products 400 368 361 352 332 31
Slide 41: Our Ecosystem Connects Investors and Providers of Investment and Savings Solutions
OUR ECOSYSTEM CONNECTS AND ENABLES INVESTORS AND PROVIDERS OF INVESTMENT AND SAVINGS SOLUTIONS Investors Providers >1,000 Clients 10 White-labelling issuers Private, regional and universal LynQs banks 20 Third-party issuers Independent asset managers SHIP 7 Hedging counterparties (SHIP) Family offic
Slide 42: We Have Diligently Executed on Our Strategic Priorities Defined in H1 2018
WE HAVE DILIGENTLY EXECUTED ON OUR STRATEGIC PRIORITIES WE DEFINED IN H1 2018 PRIORITIES DEFINED IN H1 2018 UPDATES & ACHIEVEMENTS • More agile and systematic approach to project Increase efficiency, reduce management (product organisation) IT personnel 1 functional overlaps and clarify • Many of Le
Slide 43: Well Positioned to Deliver Sustainable Shareholder Returns
AFTER THREE YEARS OF STRATEGIC INVESTMENTS, LEONTEQ IS WELL POSITIONED TO DELIVER SUSTAINABLE SHAREHOLDER RETURNS Attractive Unique Focused Sustainable markets proposition execution of shareholder and offering strategy returns 43
Slide 44: Appendix
ote t LEONTEQ APPENDIX
Slide 45: Group Results
GROUP RESULTS Income statement H2 2020 H1 2020 H2 2019 Change FY 2020 FY 2019 Change CHFm y-o-y y-o-y Net fee income 121.6 213.0 144.0 (16%) 334.6 264.9 26% Net trading result 8.7 (107.1) (10.7) N/A (98.4) (3.2) N/A Net interest result (1.5) (5.0) (3.1) (52%) (6.5) (8.3) (22%) Other ordinary income
Slide 46: Segment Results
SEGMENT RESULTS Investment Solutions H2 2020 H1 2020 H2 2019 Change FY 2020 FY 2019 Change y-o-y y-o-y Total operating income (CHFm) 121.0 76.8 98.2 23% 197.8 205.5 (4%) Total operating expenses (CHFm) (77.1) (82.3) (75.1) 3% (159.4) (149.5) 7% Profit before taxes (CHFm) 43.9 (5.5) 23.1 90% 38.4 56.
Slide 47: Regional Results
REGIONAL RESULTS Fee income breakdown H2 2020 H1 2020 H2 2019 Change FY 2020 FY 2019 Change CHFm y-o-y y-o-y Switzerland 46.5 82.0 59.3 (22%) 128.5 111.7 15% Europe (excl. Switzerland) 59.8 113.2 69.8 (14%) 173.0 125.0 38% Asia 15.3 17.8 14.9 3% 33.1 28.2 17% Total net fee income 121.6 213.0 144.0 (
Slide 48: Shareholder Structure
SHAREHOLDER STRUCTURE Shareholder structure1 Significant shareholders1,2 Raiffeisen Switzerland3 29.02% Lukas T. Ruflin 8.17% Sandro Dorigo 2.79% 20% Subtotal shareholders’ agreement 39.98% 32% Rainer-Marc Frey 10.15% Credit Suisse Funds AG 4.94% 8% Swisscanto Fondsleitung AG 3.03% Directors and Exe
Slide 49: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Dominik Ruggli Leonteq AG Head Investor Relations, Investor Relations Communications & Marketing Europaallee 39 | 8004 Zürich | Switzerland +41 58 800 18 55 investorrelations@leonteq.com www.leonteq.com/investors Follow Us Linkedin Twitter Renato Bolliger Facebook Investo