Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Investor Presentation (February 2024)
39 slides from Kempen European High Dividend Fund N.V. N's investor presentation, February 2024
Slide 1: Investor presentation
ee February 2024 Investor presentation
Slide 2: Van Lanschot Kempen at a glance
Van Lanschot Kempen at a glance We are an independent, specialist wealth manager with the aim to preserve and create wealth for our clients and for society in a sustainable way We focus on private clients, wholesale and institutional clients, and investment banking clients Our core activities are pr
Slide 3: Solid performance on all key financials
Solid performance on all key financials 2023 2022 Net result €125.2m €84.3m Underlying net result €130.5m €117.8m CET1 ratio 19.6% 20.6% Cost/income ratio 71.6% 73.1% RoCET1 14.2% 12.3% Total capital ratio 25.3% 26.4% Client assets €145.0bn €124.2bn AuM €127.6bn €107.8bn Loan book €9.2bn €9.4bn (exc
Slide 4: Van Lanschot Kempen: independent, well-capitalised wealth manager
Van Lanschot Kempen: independent, well-capitalised wealth manager Who we are – We are an independent, well-capitalised, wealth manager with a banking licence – Aim to be the best wealth manager in western Europe, with leading positions in the Netherlands and Belgium – We have a strong specialist pos
Slide 5: We serve our clients with clearly defined propositions
We serve our clients with clearly defined propositions Private Clients Wholesale & Institutional Investment Banking Clients Clients • Wealth management services for • Comprehensive fiduciary wealth • Corporate finance, equity capital entrepreneurs, family businesses, management for institutional cli
Slide 6: The year in review
The year in review Our clients Our employees Society Our shareholders • Continuing growth of • Focus on the • Focus on energy and • Dividend proposal of clients and net inflows development and food transitions €2.00 per share • Renewed interest in throughflow of • Continued annual • Continued fixed
Slide 7: Achieving sustainable and profitable growth
Achieving sustainable and profitable growth Organic growth • Strong net AuM inflow (€5.3bn) AuM development Bolt-on Bolt-on acquisitions acquisitions • Complete integration of Mercier Completed integration of Mercier Vanderlinden •Vanderlinden +18% • AcquisitionofofRobeco Robeco’s online investment
Slide 8: Progress towards our sustainability goals
Progress towards our sustainability goals Lower carbon emissions Discretionary (AuM) 88% of funds on track for reduction of 7% average annual emission intensity in line with Paris Agreement Target: 80% of funds comply with 7% average annual emission intensity reduction Mortgage portfolio -6.9% total
Slide 9: Working towards our medium-term financial targets
Working towards our medium-term financial targets Cost/income CET 1 ratio RoCET 1 Dividend ratio pay-out ratio* 71.6% 19.6% 14.2% 68.6% Target: Target: Target: Target: 70 % 17.5% including 12.0% 50 – 70 % 2.5% M&A add-on * Proposed dividend payment / underlying net result attributable to shareholder
Slide 10: Shareholder return since 2016
Shareholder return since 2016 Total shareholder return (€ m) 85 74 61 29 82 59 721 61 636 562 501 390 419 331 270 270 Returns 2016- Capital Dividend Dividend Dividend Capital Dividend Capital return Total 2018 return 2019 2020 2021 return 2022 2023 return to 2019 2022 shareholders * 2016-2018 saw th
Slide 11: 2023 full-year results
ee 2023 full-year results
Slide 12: 2023: Performance
2023: Performance Net result €125.2m Commission AuM Strong capital position (2022: €84.3m) income €427.2m €127.6bn CET 1 ratio 19.6% (2022: €407.8m) (2022: €107.8bn) (2022: 20.6%) Underlying net result Interest income AuM net inflow RoCET 1 at 14.2% €130.5m €196.5m €5.3bn (2022: 12.3%) (2022: €117.8
Slide 13: 2023: Key messages
2023: Key messages Net result of €125.2m (2022: €84.3m): • Commission income +5% • Interest income +21% • Operating expenses +8% Net AuM inflow: €5.3bn • Private Clients net inflow: €2.3bn • Wholesale & Institutional Clients net inflow: €3.1bn Segment operating profit before tax: • Private Clients:
Slide 14: Net result amounts to €125.2m
Net result amounts to €125.2m Key drivers of net result (€ m) 10.0 -36.7 33.8 28.5 -5.4 19.4 -8.7 137.5 125.2 125.2 103.7 110.7 102.0 102.0 84.3 84.3 2022 Commission Interest Other income Operating Impairments Expenses Other** 2023 income income* expenses related to accounting treatment Mercier Vand
Slide 15: Overview of net result
Overview of net result €m 2023 2022 % change Commission 427.2 407.8 5% - Of which securities commissions 389.8 350.4 11% - Of which other commissions 37.4 57.4 -35% Interest 196.5 162.7 21% Other income 39.1 29.2 34% Income from operating activities 662.8 599.7 11% Operating expenses -474.8 -438.2 8
Slide 16: Private Clients: High net inflows
Private Clients: High net inflows AuM (€ bn) 5.0 4.7 2.3 52.4 47.5 40.5 40.5 42.8 31/12/2022 Net AuM inflows Market Acquisition 31/12/2023 performance • Net inflows: 71% non-discretionary, 29% discretionary • Q1: strong inflow in non-discretionary AuM from excess savings, increased client holdings i
Slide 17: Private Clients: Strong net AuM inflow in Belgium of €0.8bn
Private Clients: Strong net AuM inflow in Belgium of €0.8bn • After a successful integration we continued as Mercier Van Lanschot from 1 January 2024 • Private Clients Belgium will be reported as a separate segment from 2024 • Intended acquisition of Belgian investment adviser Accuro, expected to be
Slide 18: Private Clients: Positioning Evi van Lanschot for further growth
Private Clients: Positioning Evi van Lanschot for further growth • Good progress on integration of Robeco’s online investment platform • Acquisition created a leading online investment platform for mass- affluent clients, with AuM of €6.4bn • Well on track with the integration with one-off transitio
Slide 19: Wholesale & Institutional Clients: €3.1bn net inflow
Wholesale & Institutional Clients: €3.1bn net inflow AuM (€ bn) 4.7 2.8 0.5 -0.2 69.9 70.4 75.1 67.3 67.2 67.2 31/12/2022 Net Investment Net Fiduciary Net Alternative Market 31/12/2023 Strategies Management Investment performance inflows inflows Solutions inflows • Investment strategies: net outflow
Slide 20: Stable margins at both Private Clients and Wholesale & Institutional Clients
Stable margins at both Private Clients and Wholesale & Institutional Clients Annualised recurring fees* (€ m) AuM breakdown (~%) 11% 25% Private Clients 64% 379.8 414.7 359.5 329.6 339.8 306.9 22% 26% Wholesale & Institutional Clients HY2021 YE2021 HY2022 YE2022 HY2023 YE2023 53% Equities Bonds Othe
Slide 21: Investment Banking Clients: Challenging markets due to increasing interest rates
Investment Banking Clients: Challenging markets due to increasing interest rates Commission income (€ m) 55.3 56.0 36.5 2021 2022 2023 • Operating result before tax of -€4.4m (2022: €9.7m) • Rising interest rates put pressure on deal activity in real estate sector • We adapted our organisation to ma
Slide 22: Net interest income: client behaviour main driver
Net interest income: client behaviour main driver • In the first half of the year, clients converted on-demand savings into AuM, mainly fixed income • In the second half, client demand for term deposits accelerated • Clients switched back to savings rather than reinvesting the proceeds from maturing
Slide 23: Interest margins improved in 2023
Interest margins improved in 2023 Interest income (€ m) Interest margin (12-month moving average, %) 1.24% 1.18% 107.9 0.92% 93.0 88.6 0.88% 76.1 77.5 69.7 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023* H2 2023* H1 2022 H2 2022 H1 2023 H2 2023 Interest margin* • Interest income stabilised in the second ha
Slide 24: Higher result on other income mainly driven by the sale of a participating interest
Higher result on other income mainly driven by the sale of a participating interest €m Income Income Book Book value value 2023 2022 YE2023 YE2022 Van Lanschot Kempen Participaties 28.4 10.1 35.0 47.8 Bolster Investments Coöperatief UA 3.9 6.3 76.3 63.1 Co-investments in own investment funds (incl.
Slide 25: Operating expenses: Focus on scalable growth
Operating expenses: Focus on scalable growth Operating expenses (€ m) Internal FTEs 19.0 17.7 55 5 457.1 474.8 1,780 1,844 1,844 1,899 1,904 438.2 438.2 2022 H1 2023 Robeco's Other H2 2023 2022 Staff costs Other 2023 online investment platform • Increase in staff costs, mainly driven by a higher num
Slide 26: Loan portfolio
Loan portfolio €m Loan Loan % change Impaired Provision Impaired Coverage portfolio portfolio loans ratio ratio 31/12/2023 31/12/2022 Mortgages 6,368 6,341 0% 27 2 0.4% 8% Other loans 2,182 2,371 -8% 98 25 4.5% 26% Loan portfolio 8,550 8,712 -2% 125 28 1.5% 22% Mortgages distributed by third parties
Slide 27: Additions to loan loss provisions
Additions to loan loss provisions Additions to loan loss provisions (€ m) Loan loss provision per stage (€ m) -29 bps* -19 bps* 5 bps* 2.0 42.4 Stage 3 26.9 27.7 Stage 2 Stage 1 7.0 6.1 3.5 3.6 4.4 6.1 -7.7 31/12/2021 31/12/2022 31/12/2023 -11.7 • Loan loss provisions relative to average risk- 2021
Slide 28: Strong CET 1 ratio at 19.6%
Strong CET 1 ratio at 19.6% Dividend proposal of €2.00 per share (total €85.0m) Common Equity Tier 1 ratio (%) 0.8 0.8 -1.9 -0.5 -0.2 20.6 18.7 18.7 19.5 19.8 19.4 19.6 31/12/2022 Capital return Shares issued Retained Operational Other 31/12/2023 regarding profit risk Mercier Vanderlinden • CET 1 ra
Slide 29: Solid capital position
Solid capital position Continued commitment to return excess capital • Our intention remains to return excess capital above 17.5% CET 1 ratio target to our shareholders going forward Total shareholder return (€ m) Total capital return €146m 85 85 74 61 Capital return Dividend 2022 Capital return Pro
Slide 30: Committed to our financial targets
Committed to our financial targets Common Equity Tier 1 ratio Dividend pay-out ratio* 15% + 2.5% 50%-70% medium-term medium-term 23.8% 24.3% 23.7% 20.6% 19.6% 65% 67% 69% 57% 53% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Cost/income ratio Return on Common Equity Tier 1* 70% 12% medium-term m
Slide 31: Appendix
ee Appendix
Slide 32: Progress on our non-financial KPIs
Progress on our non-financial KPIs 32
Slide 33: High scores on external ESG ratings
High scores on external ESG ratings Governance: 2 B- rating Lower governance risk = 1 On a scale of A+ to D- Higher governance risk = 10 ISS ESG Corporate Rating 6th place in league table of AA rating 491 entrants On a scale of AAA to CCC on resilience to ESG risks 11st place in a league table 4 and
Slide 34: Management Board
Management Board Maarten Edixhoven Jeroen Kroes Wendy Winkelhuijzen Arjan Huisman (1971) Richard Bruens (1967) Erik van Houwelingen (1965) (1971) (1973) (1978) COO Client Management & Investments Strategies & Chair CFO CRO Origination Solutions Appointed Appointed Appointed Appointed Appointed Appoi
Slide 35: Supervisory Board
Supervisory Board Frans Blom Manfred Schepers Karin Bergstein Brigitte Boone Maarten Muller Elizabeth Nolan (1962) (1960) (1967) (1960) (1954) (1962) Chair Vice-Chair Appointed: 2018 Appointed: 2017 Appointed: 2020 Appointed: 2021 Appointed: 2018 Appointed: 2023 More information about the Supervisor
Slide 36: Van Lanschot Kempen shares
Van Lanschot Kempen shares Development of share price and trading volume Movements in Van Lanschot Kempen's share price Jun-19: Ex- Jun-21: Ex- dividend dividend Oct-21: Ex- dividend Jun-22: Ex- dividend compared with industry indices €1.45 €0.20 €1.95 €2.00 200% €35 100,000 180% 90,000 €30 80,000 1
Slide 37: We have a diversified shareholder base
We have a diversified shareholder base Van Lanschot Kempen’s shareholder base At 31/12/2023 Romij 10.1% LDDM Holding 9.8% Janus Henderson Group 5.6% FMR 58.0% 5.0% Management & employees 4.7% MVDP 3.9% J.B. Meulman 3.0% Other 37
Slide 38: Van Lanschot Kempen's rich history reaches back to 1737
Van Lanschot Kempen’s rich history reaches back to 1737 Cornelis van Strategic Lanschot founds review Van Lanschot in Van Lanschot New name: ‘s-Hertogenbosch listed on Next steps Amsterdam wealth stock exchange Launch of management One brand Evi van Lanschot Strategy update strategy defined strategy
Slide 39: Disclaimer
Disclaimer Disclaimer and cautionary note on forward-looking statements This document may contain forward-looking statements and targets on future events and developments. These forward-looking statements and targets are based on the current insights, information and assumptions of Van Lanschot Kemp
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