Slide 1: Vontobel full-year results 2016
Vontobel full-year results 2016 Zeno Staub, Chief Executive Officer Martin Sieg Castagnola, Chief Financial Officer 8 February 2017 Performance creates trust
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Vontobel full-year results 2016 8 February 2017 Cautionary statement regarding forward-looking statements and disclaimer This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factor
Slide 3: Overview
Vontobel full-year results 2016 8 February 2017 Overview Highlights Full-year results 2016 Strategy update Outlook Questions and answers 3
Slide 4: Key figures: net profit increase, record advised client assets
Vontobel full-year results 2016 8 February 2017 Vontobel delivers increase in net profit – advised client assets reach new record high – capital position remains very strong Key figures IFRS Group net profit _ +47% Adjusted net profit +12% CHF 264.4 mn CHF 201.5 mn Advised +5%1 Net new money excl. 5
Slide 5: Vontobel's client-driven business model delivers growth in a challenging environment
Vontobel full-year results 2016 8 February 2017 Vontobel’s client-driven business model focusing on wealth and asset management delivers growth even in a challenging environment Vontobel’s client-centric business model is resilient and generates profitable growth - Client-centricity, service and pro
Slide 6: Overview
Vontobel full-year results 2016 8 February 2017 Overview Highlights Full-year results 2016 Strategy update Outlook Questions and answers 6
Slide 7: Adjusted Group net profit due to significant one-off impacts in 2016
Vontobel full-year results 2016 8 February 2017 Vontobel reports adjusted Group net profit due to significant one-off impacts in 2016 Group net profit (CHF mn) Comments IFRS Group net profit increased by 47% in 2016, adjusted for one-off impacts, net profit rose by 12% One-off impacts in 2016 includ
Slide 8: Advised client assets reach new record high at CHF 155 billion
Vontobel full-year results 2016 8 February 2017 Advised client assets reach new record high at CHF 155 billion – 95% stem from clients in target markets Advised client assets (CHF bn, end of period) Advised client assets by client domicile (end-2016) Others Italy 155 Switzerland 148 5% 137 6 6 5% 7
Slide 9: Wealth Management achieves net new money growth of 5.3%
Vontobel full-year results 2016 8 February 2017 Wealth Management achieves impressive annualized net new money growth of 5.3% – above target range of 3-5% Net new money (CHF bn) Development of AuM (CHF bn) Gross margin on AuM (bps) 5.9% 5.3% 7.8% 3.7% 4.4% 5.3% ∆ in % 2.6 76 73 73 31-12-15 41.6 72 6
Slide 10: Increased operating leverage in Asset Management drives improved cost/income ratio
Vontobel full-year results 2016 8 February 2017 Increased operating leverage in Asset Management drives improved cost/income ratio and higher profitability Net new money1 (CHF bn) Development of AuM (CHF bn) Pre-tax profit and CIR (CHF mn; %) 15.4% 17.7% 12.5% 6.9% 9.4% 5.7%2 ∆ in % 8.2 7.9 31-12-15
Slide 11: Partnership with Raiffeisen contributing to growth; Vescore integration progressing
Vontobel full-year results 2016 8 February 2017 Partnership with Raiffeisen is contributing to growth – integration of Vescore is progressing rapidly Partnership with Raiffeisen Integration of Vescore Raiffeisen is a leading Swiss retail bank with 3.7 mn Strategic boutiques Quantitative Investments
Slide 12: Financial Products with strong pan-European footprint
Vontobel full-year results 2016 8 February 2017 Financial Products with strong pan-European footprint – volume on deritrade® MIP is rising rapidly Notional volume issued on Turnover in listed and non-listed Vontobel products1 (CHF bn) deritrade® MIP (CHF bn) +55% Shift from exchange-traded to non- 1
Slide 13: Adjusted net profit of CHF 201.5 million in challenging environment
Vontobel full-year results 2016 8 February 2017 Vontobel achieved adjusted net profit of CHF 201.5 million in challenging environment – an increase of 12% compared to 2015 Breakdown of net profit Comparison of net profit with 2016 (CHF mn) previous year (CHF mn) Comments Operating income proved resi
Slide 14: Strong EPS growth with stable risk-weighted positions
Vontobel full-year results 2016 8 February 2017 Vontobel generates strong EPS growth with stable risk-weighted positions – reflecting our successful focus on capital-light businesses Earnings per share (CHF) and risk-weighted positions (CHF mn) 8% 101% 3.571 3.20 2.24 1.95 1.92 5,294 5,236 5,361 1.7
Slide 15: Cost/income ratio improves to 73.6% and return on equity to 18.0%
Vontobel full-year results 2016 8 February 2017 Vontobel improves cost/income ratio to 73.6% and increases return on equity to 18.0%, significantly exceeding cost of capital Development of key figures Comments 2015 2016 ∆ Operating income increased by 9% due to sale of stake in Helvetia Operating in
Slide 16: Higher pre-tax profit in all core activities
Vontobel full-year results 2016 8 February 2017 Organic growth and operating leverage lead to higher pre-tax profit in all core activities Pre-tax profit of core activities and Corporate Center (IFRS, CHF mn) Wealth Management1 Asset Management Financial Products Corporate Center +18% 164 +11% +3% 6
Slide 17: Further strengthening of capital position
Vontobel full-year results 2016 8 February 2017 Further strengthening of capital position – significantly exceeds regulatory requirements without issuing any AT1 or T2 Change in regulatory capital (CHF mn) Regulatory capital (CHF mn; end-2016; fully applied) -114 1,018 1,018 264 -27 895 0.0% 858 >4%
Slide 18: Overview
Vontobel full-year results 2016 8 February 2017 Overview Highlights Full-year results 2016 Strategy update Outlook Questions and answers 18
Slide 19: Focused on solidly growing markets with a distinctive offering
Vontobel full-year results 2016 8 February 2017 Vontobel is focused on solidly growing markets and is delivering value through a distinctive first-class offering Wealth management Active asset management Financial products Strong growth of HNWI population Industry AuM grew by an average of Long-term
Slide 20: Strategy based on core capabilities, target markets and leading technology
Vontobel full-year results 2016 8 February 2017 Vontobel’s strategy is based on our core capabilities, target markets and leading technology Our strategy is based on three pillars Core capabilities Target markets Leading technology We protect and build the In addition to our home We harness technolo
Slide 21: Successfully delivering on strategy
Vontobel full-year results 2016 8 February 2017 Vontobel is successfully delivering on its strategy Core capabilities Strategic priority: service and product excellence Vontobel’s core Service leader Named ‘Best Private Bank in Switzerland’ in 2016 by Swiss business capabilities are: magazine BILANZ
Slide 22: Asset Management strategy: diversified book of boutiques
Vontobel full-year results 2016 8 February 2017 Asset Management’s strategy is to run a well-diversified, institutional-focused and global book of boutiques Diversified book of business (CHF bn; end-2016) Challenging environment for active managers We are an institutional-focused active manager comm
Slide 23: Quality Growth headwinds; acceleration in Fixed Income growth
Vontobel full-year results 2016 8 February 2017 Long-term strength of Quality Growth affected by short-term headwinds – acceleration in growth of Fixed Income since 2010 Quality Growth stays on course Growth of Fixed Income accelerated since 2010 In 2H16, especially after the US election, there was
Slide 24: Wealth Management growth based on creating value for clients
Vontobel full-year results 2016 8 February 2017 Wealth Management’s growth is based on our focus on creating value for our clients Vontobel has a clear strategy to drive growth Vontobel offers higher stability than peers Value for clients Gross margin on AuM (indexed) Lower client activity, negative
Slide 25: Wealth Management attracting top talent and highly scalable
Vontobel full-year results 2016 8 February 2017 Wealth Management is attracting top talent and is highly scalable – organic growth will be complemented by acquisitions Top talent is at the core of our offering Vontobel’s platform is highly scalable Vontobel attracts and retains top talent Vontobel’s
Slide 26: Financial Products expanded its franchise over the last decade
Vontobel full-year results 2016 8 February 2017 Financial Products successfully expanded its franchise over the last decade and is embracing current trends International expansion and development of Innovation, technology and regulation platform business are drivers of growth will continue to drive
Slide 27: Financial Products growth ambitions in Europe and Asia
Vontobel full-year results 2016 8 February 2017 Financial Products has growth ambitions in Europe and Asia – clients around the world will benefit from our technology and offering Potential for further growth Preparation of market entry Vontobel drives innovation of product business in Europe in Hon
Slide 28: 2017 targets achieved one year early; new 2020 targets in August
Vontobel full-year results 2016 8 February 2017 2017 targets achieved one year early due to successful implementation of growth strategy – new targets for 2020 to be announced in August Return on equity (in %) Cost/income ratio (in %) Total capital ratio (in %) Payout ratio (in %) 21.3 69.2 18.0 80.
Slide 29: Overview
Vontobel full-year results 2016 8 February 2017 Overview Highlights Full-year results 2016 Strategy update Outlook Questions and answers 29
Slide 30: Rapidly changing world creates opportunities for Vontobel
Vontobel full-year results 2016 8 February 2017 Rapidly changing world creates opportunities for Switzerland and for Vontobel as a specialized international wealth and asset manager The world is undergoing fundamental changes New truths and opportunities are emerging Common truths like ‘free markets
Slide 31: Vontobel will invest in 2017 and prepare for next phase of growth
Vontobel full-year results 2016 8 February 2017 Vontobel will invest in 2017 and prepare for the next phase of growth Profit growth of 12% in 2016 on adjusted basis Vontobel will invest in growth initiatives Wealth Management: Pursue growth by targeting Swiss and Group net profit (CHF mn) internatio
Slide 32: Overview
Vontobel full-year results 2016 8 February 2017 Overview Highlights Full-year results 2016 Strategy update Outlook Questions and answers 32
Slide 33: Appendix
Vontobel full-year results 2016 8 February 2017 Appendix 33
Slide 34: Advised client assets more than doubled since 2008
Vontobel full-year results 2016 8 February 2017 Advised client assets have more than doubled since 2008 – confirming Vontobel’s successful focus on its core capabilities Advised client assets (CHF bn, period-end) Vontobel’s business model Vontobel’s core capabilities are to protect and build wealth,
Slide 35: 95% of advised client assets stem from home and focus markets
Vontobel full-year results 2016 8 February 2017 95% of advised client assets stem from home and focus markets Advised client assets by client domicile as of end-2016 (CHF bn) Home Focus markets Other markets market Emerging Switzerland1 Germany Italy UK US Total Markets2 Advised client assets 64.2 1
Slide 36: Advised client assets grown 13% since 2014, well diversified
Vontobel full-year results 2016 8 February 2017 Advised client assets have grown by 13% since 2014 and are well diversified across asset classes Advised client assets (CHF bn) Advised client assets by asset class (end-2016) Wealth Management Asset Management +13% 4% 155.3 9% 147.8 26% 136.9 9.5 35%
Slide 37: Strong performance culture is confirmed by the market
Vontobel full-year results 2016 8 February 2017 Strong performance culture is confirmed by the market We have received 150 awards for our investment funds and our investment expertise since 2011 150 37
Slide 38: Asset Management boutiques focus on clearly defined investment strategies
Vontobel full-year results 2016 8 February 2017 Vontobel Asset Management boutiques focus on clearly defined investment strategies Client assets1 Client assets1 Quality Growth boutique (CHF bn) Multi Asset boutique (CHF bn) High-quality growth at sensible prices – a single Global, benchmarked multi-
Slide 39: Expansion of partnership with Raiffeisen
Vontobel full-year results 2016 8 February 2017 Expansion of partnership with Raiffeisen based on Vontobel’s compelling asset management offering for financial institutions Vontobel’s offering for asset management partners Partners across the globe rely on Vontobel’s offering Distinctive offering fo
Slide 40: Omni-channel offering for Wealth Management clients
Vontobel full-year results 2016 8 February 2017 Vontobel’s omni-channel offering gives Wealth Management clients a coherent and seamless experience – ‘anytime and anywhere’ Vontobel’s omni-channel offering Watch list Contact Ideas/research Trading Tablet Markets Wealth overview Smartphone Desktop B2
Slide 41: Financial Products business model
Vontobel full-year results 2016 8 February 2017 Vontobel Financial Products provides investment content and bespoke structured products through a well-balanced business model Capital markets Vontobel’s derivatives factory Distribution Risk - Exchanges Investment Content advisory - OTC - Interbank ma
Slide 42: Financial Products leverages technology and cost structure to gain share in Europe
Vontobel full-year results 2016 8 February 2017 Financial Products leverages technology and cost structure to gain market share in Europe Technology leadership Leverage products in Europe Leading technology platform enables Vontobel VT market share in Future to rapidly enter new markets and to estab
Slide 43: Financial Products with stable or growing market share
Vontobel full-year results 2016 8 February 2017 Financial Products with stable or growing market share across all markets Switzerland (CHF bn; 2016) Germany (EUR bn; 2016) Rank Market share turnover Market share # of trades Rank Market share turnover Market share # of trades #2 26.0% 49.2% #5 6.8% 9
Slide 44: Distribution strategy for Financial Products
Vontobel full-year results 2016 8 February 2017 Distribution strategy for Financial Products geared towards high-growth areas Derivatives market Exchange (SIX Structured Products, Börse Frankfurt, Euwax, NGM, Sedex) Primary market Secondary market Issuance Fixing/listing Private placements Expiry Ex
Slide 45: deritrade MIP decision-making tool for structured products
Vontobel full-year results 2016 8 February 2017 deritrade® MIP is the world’s first decision-making tool for designing and buying structured products using smart and crowd data Innovation cycles Benefits of Vontobel’s multi-issuer platform deritrade® MIP provides full customization capabilities at b
Slide 46: deritrade SmartGuide intelligent decision-making tool
Vontobel full-year results 2016 8 February 2017 deritrade® SmartGuide The intelligent decision-making tool The new standard of tomorrow … …is already operating in today’s world Technology that transforms big data into smart data Technological analysis intelligence with direct access to the vast amou
Slide 47: Platform partners benefit from best execution and large distribution network
Vontobel full-year results 2016 8 February 2017 Platform partners benefit from our best execution for all product components and our large distribution network Open architecture as a mission statement Value propositions Vontobel offers Platform Partners the ability to issue structured products Best
Slide 48: deritrade Multi-Issuer Platform
Vontobel full-year results 2016 8 February 2017 deritrade® Multi-Issuer Platform offers structured products from multiple issuers within seconds for a given product specification 48
Slide 49: Dedicated strategy for Asia Pacific
Vontobel full-year results 2016 8 February 2017 Vontobel launches dedicated strategy for Asia Pacific to at least double business volume in the region by 2020 Wealth management Asset management Financial products Focus on niche offering based on ability to Take market development to next level: Leve
Slide 50: Adjusted Group net profit of CHF 201.5 mn
Vontobel full-year results 2016 8 February 2017 Adjusted Group net profit of CHF 201.5 mn Effect of one-off impacts on Group net profit (CHF mn) Reported in 2016 IFRS Group net profit 264.4 Sale of stake in Helvetia Corporate Center - 91.0 Adjustment of Finter Bank purchase price Corporate Center -
Slide 51: All segments with ambitious targets for 2017
Vontobel full-year results 2016 8 February 2017 All segments with ambitious targets for 2017 Private Banking Asset Management Financial Products & EAM NNM growth (in %) NNM growth1 (in %) Pre-tax ROAC3 (in %, annualized) 9.4 46 6.9 43 > 25 5.8 5.72 3-5 34 4.1 3-5 3.5 2014 2015 2016 Target 2017 2014
Slide 52: Active management of capital expenditure
Vontobel full-year results 2016 8 February 2017 Active management of capital expenditure will lead to CIR improvement of about 1 percentage point by 20211 Development of capital expenditure (CHF mn) includes avaloq 93.9 85.4 Significant investments in IT (renewal of front office systems and avaloq)
Slide 53: High quality of bond portfolio maintained
Vontobel full-year results 2016 8 February 2017 High quality of bond portfolio maintained Counterparty exposure by rating (end-2016) Counterparty exposure by sector (end-2016) 6% 1% 25% 24% 35% 38% 30% 41% AAA AA A BBB Other Government/public sector bodies Financials Corporates (non-financials) Note
Slide 54: Financial Products accounts for less than one-third of capital usage
Vontobel full-year results 2016 8 February 2017 Financial Products accounts for less than one-third of capital usage Capital consumption as of end-2016 (CHF mn) 703.9 270.5 275.1 176.7 157.1 201.2 33.0 137.9 77.8 99.6 0.0 130.31 5.2 192.4 38.6 62.1 61.1 40.7 8.2 32.3 98.5 17.3 -3.9 Wealth Asset Fina
Slide 55: Disciplined M&A approach
Vontobel full-year results 2016 8 February 2017 Vontobel continues to pursue disciplined M&A approach Active participation in industry consolidation to accelerate profitable growth Current capital structure provides substantial resources for both bolt-on and larger acquisitions Maintain disciplined
Slide 56: Attractive value proposition for investors
Vontobel full-year results 2016 8 February 2017 Vontobel represents an attractive value proposition for investors … with strong A growth case … financial discipline … … and potential for M&A Wealth and asset management Capital-light business model as a Potential to boost profitability industry is gr
Slide 57: Strategy has delivered attractive returns to shareholders
Vontobel full-year results 2016 8 February 2017 Successful implementation of Vontobel’s strategy has delivered attractive returns to shareholders for more than a decade Return on equity and dividends Comments Attractive business with average return on equity of 11.9% since 21.6% 2003 – clearly above
Slide 58: Additional transparency on wealth management activities
Vontobel full-year results 2016 8 February 2017 Vontobel provides additional transparency on its wealth management activities Financial disclosure Comments Organizational set-up/ Vontobel’s Wealth Management activities consist of Private IFRS reporting Core activities Banking (PB) and the business w
Slide 59: Vontobel families hold more than 50% of share capital
Vontobel full-year results 2016 8 February 2017 Vontobel families hold more than 50% of share capital and are strongly committed to Vontobel Shareholder structure under new shareholder pooling agreement1,2 Vontobel Foundation and Pellegrinus Holding 19.6% Pooled shares Vontrust AG 14.3% Free float 4
Slide 60: Vontobel Investor Relations
Vontobel full-year results 2016 8 February 2017 Vontobel Investor Relations Gotthardstrasse 43 CH-8022 Zurich +41 58 283 73 29 vontobel.com 60