Slide 1: Vontobel half-year results 2017
Vontobel half-year results 2017 Zeno Staub Martin Sieg Castagnola CEO CFO 27 July 2017
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer 27 July 2017 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 factors. These projections and forward-lo
Slide 3: Overview
Overview 27 July 2017 Highlights Half-year results 2017 Strategy update Outlook Questions and answers
Slide 4: Advised client assets reach record high – Vontobel delivers solid Group net profit
Advised client assets reach record high – Vontobel delivers solid Group net profit 27 July 2017 Key figures as of 30 June 2017 Advised client assets Net new money CHF 0.3 bn CHF 164.7 bn CHF 2.1 bn in 2Q17 Operating income Group net profit Earnings per share CHF 517.5 mn CHF 101.5 mn CHF 1.78 Return
Slide 5: Significant investment in new markets, talent, technology and brand
Significant investment in new markets, talent, technology and brand in order to generate future growth 27 July 2017 Clients continue to endorse our services and products – Impressive NNM growth of 6.8% in Wealth Management in 1H17 – NNM inflows of CHF 1.0 bn in Asset Management in 2Q17 – Further mar
Slide 6: Half-year results 2017
Overview 27 July 2017 Highlights Half-year results 2017 Strategy update Outlook Questions and answers
Slide 7: Vontobel delivers solid 1H17 result
Vontobel delivers solid 1H17 result 27 July 2017 Group net profit (CHF mn) Comments – Vontobel focused its capital on its +7% own operations and sold its 4% stake in Helvetia – meaning it no longer receives a dividend from 105.7 106.1 101.5 Helvetia (2016 dividend: CHF 7.0 mn 98.7 4.6 7.0 after tax1
Slide 8: Advised client assets reach record high at CHF 165 billion
Advised client assets reach record high at CHF 165 billion – 95% stem from clients in target markets 27 July 2017 Advised client assets (CHF bn, end of period) Advised client assets by client domicile (mid-2017) 165 Others 155 7 Italy 5% 148 6 11 6 10 5% 137 6 7 UK 7 Switzerland 117 9% 105 7 7 42% 9
Slide 9: Wealth Management achieves net new money growth of 6.8%
Wealth Management achieves impressive annualized net new money growth of 6.8% – advised client assets reach CHF 50 bn 27 July 2017 Net new money1 (CHF bn) Development of AuM (CHF bn) Gross margin on AuM (bps) 5.3% 7.2% 4.8% 5.7% 4.8% 6.8% ∆ in %2 76 76 1.6 73 73 31-12-16 46.8 69 66 Net new money 1.6
Slide 10: Asset Management with CHF 1.0 bn of net new money in 2Q17
Asset Management with CHF 1.0 bn of net new money in 2Q17 – Delivery of strong investment performance for our clients 27 July 2017 Net new money1 (CHF bn) Development of AuM (CHF bn) Pre-tax profit and CIR (CHF mn; %) 9.0% 24.7% -3.0% 13.4% 4.4%2 -11.7% 4.3% ∆ in %3 100 300 290 280 31-12-2016 92.3 9
Slide 11: Financial Products with expansion in Europe and increase in trading volumes
Financial Products with expansion in Europe and increase in trading volumes of own products and on deritrade® MIP 27 July 2017 Turnover in listed and non-listed Vontobel products1 (CHF bn) Notional volume issued on +116% deritrade® MIP (CHF bn) Listed products2 in Europe (1H17) +450% +50% 13.0 MARKE
Slide 12: Corporate Center income reduced by interest rates and capital focus
Interest rates and capital focus on operating business reduce Corporate Center income – stable operating expense 27 July 2017 Treasury revenues Integration of Vescore Operating expense – Low interest rates continue to – In 2016, Raiffeisen and Vontobel – Operating expense in Corporate negatively imp
Slide 13: Vontobel delivered solid adjusted Group net profit of CHF 106.1 mn
Vontobel delivered solid adjusted Group net profit of CHF 106.1 mn while making further investments in future growth 27 July 2017 Breakdown of 1H17 net profit Comparison with net profit in Comments (CHF mn) previous year (CHF mn) – Operating income grew to over CHF 500 mn despite tough market condit
Slide 14: Vontobel increases operating income by 4%
Vontobel increases operating income by 4% – Group net profit higher on comparable basis despite investment in growth 27 July 2017 Development of key figures Comments − Operating income rose 4% due to 30-06-16 30-06-17 ∆ increased asset base and higher Operating income (CHF mn) 496.8 517.5 +4% turnov
Slide 15: Asset Management is most important earnings driver
Asset Management is most important earnings driver – Wealth Management and Financial Products increase pre-tax profit 27 July 2017 Pre-tax profit of core activities (IFRS, CHF mn) Wealth Management1 Asset Management Financial Products +12% -19% +72% 38.4 85.3 51.5 34.2 69.5 30.0 1H16 1H17 1H16 1H17
Slide 16: Focus on capital-light business models leads to strong growth
Focus on capital-light business models leads to strong growth with little incremental risk – ample capital for acquisitions 27 July 2017 Focus on capital-light business models Regulatory capital (CHF mn; mid-2017; fully applied) Earnings per share Risk-weighted positions (in CHF) (in CHF mn) 1.78 +2
Slide 17: Strategy update
Overview 27 July 2017 Highlights Half-year results 2017 Strategy update Outlook Questions and answers
Slide 18: Vontobel is focused on solidly growing markets
Vontobel is focused on solidly growing markets and is delivering value through a distinctive first-class offering 27 July 2017 Wealth management Active asset management Financial products – Strong growth of HNWI population – Industry AuM grew by an average of – Long-term increase in demand for and H
Slide 19: Trend towards passive and truly active investing
Trend towards passive and truly active investing is challenging industry – Vontobel well positioned as high-conviction manager 27 July 2017 Shift to passive investing Our perspective Our positioning and results – Passive investing allows clients to – Active asset managers investing – Vontobel is spe
Slide 20: Asset Management's strategy: diversified, institutional-focused boutiques
Asset Management’s strategy is to run a well-diversified, institutional-focused and global book of specialized boutiques 27 July 2017 Diversified book of business (CHF bn; mid-2017) Well positioned for future growth Total advised client assets: CHF 106.8 bn – Business has never been as diversified a
Slide 21: Vontobel has been managing Emerging Markets strategies since 1992
Vontobel has been managing Emerging Markets strategies since 1992 – significant growth potential 27 July 2017 Vontobel has been investing in We offer equity, fixed income Our offering has Emerging Markets for 25 years and sustainability products significant growth potential – Vontobel has a broad Em
Slide 22: Wealth Management advised client assets reach CHF 50 bn
Wealth Management advised client assets reach CHF 50 bn due to net new money inflows and strong performance 27 July 2017 Advised client assets grew by 9% p.a. Our clients gain access to our investment expertise Advised client assets Net new money – Vontobel serves its clients according to their beha
Slide 23: Wealth Management attracts top-tier talent – highly scalable platform
Wealth Management attracts top-tier talent – highly scalable platform – organic growth can be complemented by M&A 27 July 2017 Vontobel attracts top-tier talent Vontobel’s platform is highly scalable – Vontobel attracts and retains top talent – Vontobel’s modern platform is highly scalable and capab
Slide 24: Financial Products' digital ecosystem
Financial Products with unique world-leading network and provides services through a comprehensive digital ecosystem 27 July 2017 Financial Products’ digital ecosystems mein-zertifikat.de Investment deritrade® derinet® scout app 3rd-party solutions powered by Vontobel API1 Community Ideas and buildi
Slide 25: Financial Products about to make its debut in Hong Kong
Financial Products is about to make its debut in Hong Kong – one of the world’s largest markets for leverage products 27 July 2017 Hong Kong is one of the Swiss financial institutions have Vontobel to enter largest markets globally strong positions in Hong Kong Hong Kong market in 2H17 – Financial P
Slide 26: Outlook
Overview 27 July 2017 Highlights Half-year results 2017 Strategy update Outlook Questions and answers
Slide 27: Rapidly changing world creates opportunities for Switzerland and Vontobel
Rapidly changing world creates opportunities for Switzerland and Vontobel as an international wealth and asset manager 27 July 2017 The world is undergoing the same Emergence of new truths and opportunities is unchanged fundamental changes – Common truths – e.g. ‘free markets – Prepare for a more re
Slide 28: Vontobel is refining its strategy and defining new targets for 2020
After three years of strong growth, Vontobel is refining its strategy and defining new targets for 2020 27 July 2017 Vontobel delivered strong growth over the last three years … … and has ambitious goals for the upcoming three years Wealth Management Asset Management Financial Products Advised clien
Slide 29: Questions and answers
Overview 27 July 2017 Highlights Half-year results 2017 Strategy update Outlook Questions and answers
Slide 30: Appendix
Appendix 30
Slide 31: Advised client assets have grown by 16% since 1H15
Advised client assets have grown by 16% since 1H15 – good diversification across asset classes 27 July 2017 Advised client assets (CHF bn) Advised client assets by asset class (mid-2017) Wealth Management Asset Management +16% 4% 9% 164.7 26% 37% 38% 7% 142.2 20% 7% 30% 28% 21% 20% 25% Foreign equit
Slide 32: Advised client assets have more than doubled since 2008
Advised client assets have more than doubled since 2008 – demonstrating Vontobel’s successful focus on its core capabilities 27 July 2017 Advised client assets (CHF bn, period-end) Vontobel’s business model – Vontobel’s core capabilities are to protect and build wealth, to manage assets actively and
Slide 33: 96% of advised client assets stem from home and focus markets
96% of advised client assets stem from home and focus markets 27 July 2017 Advised client assets by client domicile as of mid-2017 (CHF bn) Home Focus markets Other markets market EMERGING SWITZERLAND1 GERMANY ITALY UK US Total MARKETS2 Advised client assets 69.1 19.2 8.6 15.1 18.9 25.6 8.2 164.7 On
Slide 34: Strong performance culture is confirmed by the market
Strong performance culture is confirmed by the market 27 July 2017 We have received 166 awards for our investment funds and our investment expertise since 2011 166 34
Slide 35: Asset Management boutiques focus on clearly defined investment strategies
Asset Management boutiques focus on clearly defined investment strategies 27 July 2017 Equities Fixed Income Multi Asset Class Quality Growth Boutique Fixed Income Boutique Multi Asset Boutique High Quality Growth at Sensible Actively managed fixed-income Global, benchmarked multi-asset Prices – A s
Slide 36: Expansion of partnership with Raiffeisen
Expansion of partnership with Raiffeisen based on Vontobel’s compelling asset management offering for financial institutions 27 July 2017 Vontobel’s offering for Partners across the globe rely on Vontobel’s offering asset management partners – Distinctive offering for financial institutions focusing
Slide 37: Omni-channel offering for Wealth Management clients
Vontobel’s omni-channel offering gives Wealth Management clients a coherent, seamless experience – ‘anytime and anywhere’ 27 July 2017 Vontobel’s omni-channel offering Watch list Contact Ideas/research Trading Tablet Markets Wealth overview Smartphone Desktop B2C B2B4C 37
Slide 38: Financial Products provides investment content and bespoke structured products
Vontobel Financial Products provides investment content and bespoke structured products through a well-balanced business model 27 July 2017 Capital markets Vontobel’s derivatives factory Distribution advisory Investment content Risk – Exchanges – OTC – Interbank markets Asset classes open – Fixed in
Slide 39: Financial Products leverages technology and cost structure
Financial Products leverages technology and cost structure to gain market share in Europe and to enter Hong Kong market 27 July 2017 Technology leadership Leverage products in Europe and Asia – Leading technology platform enables VONTOBEL MARKET FUTURE Vontobel to rapidly enter new VOLUME IN 1H17 SH
Slide 40: Financial Products market share across all markets (1/2)
Financial Products with stable or growing market share across all markets (1/2) 27 July 2017 Switzerland (CHF bn) 8 60% Rank #21 6 45% MARKET SHARE 4 30% Turnover 24.7%1 2 15% 0 0% # of trades 43.4%1 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 07 08 08 09 09 10 10
Slide 41: Financial Products market share across all markets (2/2)
Financial Products with stable or growing market share across all markets (2/2) 27 July 2017 Italy2 (EUR bn) 8 20% 6 15% Rank #41 MARKET SHARE 4 10% Turnover 3.7%1 2 5% # of trades 6.6%1 0 0% Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 07 08 08 09 09 10 10 11 11 1
Slide 42: Distribution strategy for Financial Products
Distribution strategy for Financial Products geared towards high-growth areas 27 July 2017 Derivatives market Exchange (SIX Structured Products, Börse Frankfurt, Euwax, NGM, Sedex) Primary market Secondary market Issuance Fixing/listing Private placements Expiry Exchange-traded volume (1H17) deritra
Slide 43: deritrade MIP – decision-making tool for structured products
deritrade® MIP – the world’s1st decision-making tool for designing and buying structured products using smart and crowd data 27 July 2017 Innovation cycles Benefits of Vontobel’s multi-issuer platform – deritrade® MIP provides full customization capabilities at best prices – bringing the Internet re
Slide 44: deritrade SmartGuide – the intelligent decision-making tool
deritrade® SmartGuide – the intelligent decision-making tool 27 July 2017 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 amounts of digital data held on our
Slide 45: Platform partners benefit from best execution
Platform partners benefit from our best execution for all product components and our large distribution network 27 July 2017 Open architecture as a mission statement Value propositions – Vontobel gives platform partners the ability to issue – Best execution for all product components structured prod
Slide 46: deritrade Multi-Issuer Platform
deritrade® Multi-Issuer Platform offers structured products from multiple issuers within seconds for a given product specification 27 July 2017 46
Slide 47: Leveraging technology leads into B2C space
Leveraging technology leads into B2C space - derinet.ch – deritrade.com – SmartGuide – Vontobel Investment Scout 27 July 2017 Evolution and expansion of digital offering deritrade® 2003 2008 2015 SmartGuide 2017 Push Pull To-go Client chooses from existing Professional investor creates his Private i
Slide 48: Dedicated strategy for Asia Pacific
Vontobel launches dedicated strategy for Asia Pacific to at least double business volumes in the region by 2020 27 July 2017 Wealth management Asset management Financial products – Focus on niche offering based on – Take market development to next – Leverage technology leadership ability to provide
Slide 49: High quality of bond portfolio maintained
High quality of bond portfolio maintained 27 July 2017 Counterparty exposure by rating (mid-2017) Counterparty exposure by sector (mid-2017) 1% 5% 24% 24% 37% 44% 26% 39% AAA AA A BBB Other Government/public sector bodies Financials Corporates (non-financials) Note: Total issuer risk from debt instr
Slide 50: Financial Products accounts for less than one-third of capital usage
Financial Products accounts for less than one-third of capital usage 27 July 2017 Capital consumption as of mid-2017 (CHF mn) 723.9 270.0 273.0 192.2 162.9 198.2 34.9 142.1 98.8 76.2 0 1 139.2 5.5 201.3 39.4 62.1 62.3 47.3 107.5 31.2 9.5 19.5 -1.4 Total Wealth Asset Financial Products Corporate Mana
Slide 51: Disciplined M&A approach to complement organic growth
Vontobel continues to pursue a disciplined M&A approach to complement organic growth 27 July 2017 Vontobel’s M&A approach – Active participation in industry consolidation to accelerate profitable growth – Current capital structure provides substantial resources for both bolt-on and larger acquisitio
Slide 52: Vontobel represents an attractive value proposition for investors
Vontobel represents an attractive value proposition for investors 27 July 2017 A growth case … … with strong financial discipline … … and potential for M&A – Wealth and asset management – Capital-light business model as a – Potential to boost profitability industry is growing globally wealth and ass
Slide 53: Strategy has delivered attractive returns to shareholders
Successful implementation of Vontobel’s strategy has delivered attractive returns to shareholders for more than a decade 27 July 2017 Return on equity and dividends Comments – Attractive business with average 21.6% return on equity of 12.0% since 19.2% 2003 – clearly above Vontobel’s 18.0% cost of e
Slide 54: Additional transparency on wealth management activities
Vontobel provides additional transparency on its wealth management activities 27 July 2017 Financial disclosure Comments Organizational set-up/ – Vontobel’s Wealth Management activities consist of Core activities Private Banking (PB) and the business with External IFRS reporting Asset Managers (EAM)
Slide 55: Vontobel families hold more than 50% of share capital
Vontobel families hold more than 50% of share capital and are strongly committed to Vontobel 27 July 2017 Shareholder structure under new shareholder pooling agreement1,2 Vontobel Foundation and Pellegrinus Holding 19.6% Free float 49.3% Pooled shares total Vontrust AG 14.3% Shares in the core pooli