Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — H1 2021 Earnings Presentation
22 slides from Evli Plc Class B's earnings presentation, Jul 14, 2021
Slide 1: Evli Bank Plc: Financial Review 1-6/2021
EVLI BANK PLC: FINANCIAL REVIEW 1-6/2021 Maunu Lehtimäki, CEO & Juho Mikola, CFO July 14, 2021
Slide 2: Q2 Highlights – Record first half
Q2 Highlights – Record first half • Net revenue grew in each segment FINANCIAL • Group level net revenue at EUR 55.8 million (EUR 33.0 million) PERFORMANCE • Operating profit grew nearly three-fold to EUR 24.9 million (EUR 8.6 million) • Recurring revenue at 127% (121%) • AUM reached new all-time hi
Slide 3: Wealth Management & Investor Clients
Wealth Management & Split of Wealth Management fees 1-6/2021 Investor Clients 10 % 16 % Net revenues increased 45% to EUR 42.2 million (EUR 29.1 million) 12 % 50 % Operating profit increased 88% to EUR 19.1 million (EUR 10.1 million) 12 % AUM EUR 16.1 billion (EUR 12.9 billion) Traditional fun
Slide 4: Advisory & Corporate Clients
Advisory & Corporate Clients Split of advisory commissions 1-6/2021 2% Net revenues increased 164% to EUR 11.7 million 36 % (EUR 4.4 million) 62 % Operating profit increased to EUR 5.7 million (EUR 0.9 million) Corporate Finance advisory fees grew to EUR 7.6 million (EUR 1.4 million) Acted a
Slide 5: Financial figures 1-6/2021
Financial figures 1-6/2021
Slide 6: Financial development 2018-2021
Financial development 2018-2021 Net Revenue (M€) Net commission income Operating profit (M€) Net profit (M€) (M€) 23,2 79,7 29,1 19,8 75,8 18,7 68,5 76,8 24,1 24,9 17,3 72,2 67,1 55,8 18,9 53,8 33,0 33,4 6,7 8,6 KPIs 30.6.2021 Return on Equity Recurring revenue ratio Assets Under management Net Comm
Slide 7: Key figures
Key figures H1 2021 H1 2020 2020 2019 2018 Return on Equity (%) Profitability key figures Return on equity (ROE), % 37.7 17.3 26.2 23.4 23.0 37.7 % Return on assets (ROA), % 5.3 1.4 2.7 2.1 1.9 25,5 % 26,2 % 23,0 % 23,4 % Balance sheet key figures Equity-to-assets ratio, % 15.6 7.9 12.3 8.9 9.5 Capi
Slide 8: Profit and Loss Statement
Profit and Loss Statement M€ 4-6/2021 4-6/2020 1-6/2021 1-6/2020 Change, % 2020 2019 2018 Net interest 0.0 0.2 0.1 0.2 -44% 0.2 0.3 0.7 Net commissions 27.8 27.8 53.8 33.4 61% 76.8 72.2 67.1 Net income from securities trading and FX 0.8 0.8 1.8 -0.8 2.4 3.2 0.7 Other operative income 0.0 0.0 0.0 0.0
Slide 9: Balance Sheet
Balance Sheet ASSETS, M€ 30.6.2021 30.6.2020 LIABILITIES, M€ 30.6.2021 30.6.2020 Liabilities to credit institutions and central Liquid assets 322.7 337.4 banks 4.1 7.5 Debt securities eligible for refinancing with central Liabilities to the public and public-sector banks 32.1 41.8 entities 393.1 490
Slide 10: Focus in Q3/2021
Focus in Q3/2021 1. Alternative investment funds – building platform for next generation products • Preparation work to launch next round of products to existing asset classes • Launch of new real-estate fund and leverage loan fund 2. International sales • Broaden presence in Sweden • New customers
Slide 11: Share Price Development and Trading Volume
Share Price Development and Trading Volume Share price development and trading volume* 1.1.2021-30.6.2021 Breakdown of shareholdings by owner group 30.6.2021** Daily turnover, pcs Closing price, € B-serie share development 1.1.2021–30.6.2021 Non-profit Public sector institutions; 2% organizations; 7
Slide 12: Outlook for 2021 specified
Outlook for 2021 specified We expect 2021 profit to clearly exceed previous years level Supporting factors • Assets under management at new all time high • More stable alternative investments grown to form a good part of assets under management • Increased customer demand towards Evli’s products and
Slide 13: Evli Bank Plc Partial Demerger
EVLI BANK PLC PARTIAL DEMERGER Profitable growth through strategic focus
Slide 14: Evli demerger – strategic focus
Evli demerger – strategic focus Formation of new Evli and Fellow Bank 1 Evli Bank Plc ("Evli") is planning a partial demerger in which the company will be divided into two companies: Evli Bank Plc ("Evli Bank") and "New Evli" Evli Bank would continue credit institution operations Partial demerger
Slide 15: Fellow Bank
Fellow Bank Evli’s current shareholders will own ~ 27% of Fellow Bank directly ”New Evli” has committed to inject EUR 9 million of capital to Fellow Bank and become a major shareholder (17.6 percent) New Evli will be an active shareholder and a strategic partner to Fellow Bank New Evli will offer it
Slide 16: Effects for Evli's shareholders
Effects for Evli’s shareholders 1. Evli’s shareholders will receive shares from New Evli • Two share classes • New Evli shares 1:1 reflecting current ownership 2. Evli’s shareholders will also hold Fellow Bank shares • One share class • After merger and directed share issues, Evli shareholders will
Slide 17: Additional benefits to Evli
Additional benefits to Evli 1 2 3 Enables creation of More focus to Wealth growth strategy to Clearer value proposition Management growth banking business through for both New Evli and strategy new offering and broader Fellow Bank client segment 4 5 6 Regulation framework to Lighter administration L
Slide 18: Evli's strategy
Evli’s strategy Evli to focus further to the strategic goal of becoming a leading Nordic provider of wealth management and corporate services Evli’s strategy focuses on the development and growth of international sales and alternative asset classes, as well as strengthening market leadership in both
Slide 19: Evli's strategic focus areas
Evli’s strategic focus areas Clients Digitalization Increasing the client base New digital investment solutions in Finland and and service models. Utilization of internationally process automation, software robotics and artificial intelligence Sustainability Product offering Sustainability integrate
Slide 20: Wealth management and funds at the core
Wealth management and funds at the core Evli’s business model Incentive characteristics are Plans Design and administration of Scalability incentive plans Growth of AUM and management Brokerage Corporate fees without significant increases on Equities ETF Finance costs Derivatives M&A and capital Str
Slide 21: Preliminary Financial targets for New Evli
Preliminary Financial targets for New Evli The Board of New Evli to specify financial targets further during Spring 2022 1. 2. 3. Return on Equity Operating Margin Recurring Revenue (ROE) (EBIT) Ratio > 25 % >30 % >130 % Doubling assets under management in long-term 21
Slide 22: Disclaimer
Disclaimer Information set above is not intended as investment recommendation. This report is based on sources that Evli Bank Plc considers to be correct and reliable. Evli Bank Plc. nor its employees give any guarantee concerning the correctness, accuracy or completeness of any information, views,