Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Shareholder Meeting (May 2022)
54 slides from Kempen European High Dividend Fund N.V. N's shareholder meeting presentation, May 25, 2022
Slide 1: Annual general meeting - Welcome
ee s-Hertogenbosch, 25 May 2022 Annual general meeting Welcome
Slide 2: 1. Opening
1. Opening
Slide 3: 2a. Report by the Supervisory Board
2a. Report by the Supervisory Board Item for discussion
Slide 4: 2b. Management Report of the Management Board for 2021
2b. Management Report of the Management Board for 2021 Item for discussion
Slide 5: Very strong results over 2021
Very strong results over 2021 CET 1 ratio • Strong net result at €143.8m • Commission income up 30% 2021: 23.7% • Book profits on sales from portfolio of participating interests Return on CET 1 • AuM growth to €112.1bn (+13%) 2021: 15.7% • Record net inflow AuM Private Clients of €3.8bn • Partnershi
Slide 6: Our progress as a leading wealth manager in 2021
Our progress as a leading wealth manager in 2021 • Organic AuM growth: • Private Clients: Record inflows • Evi: Strong growth • Wholesale & Institutional Clients: Stable AuM • Inorganic growth: • Partnership Mercier Vanderlinden • Integration of Hof Hoorneman Bankiers • Growth in less liquid investm
Slide 7: Key messages Capital Markets Day
Key messages Capital Markets Day Transformation into specialist wealth manager completed successfully Focus on growth: organic, coupled with bolt- on acquisitions Enhancing financial targets and capital strategy 7
Slide 8: Our people: focused on client intimacy
Our people: focused on client intimacy NPS Private Clients: 41 Employee engagement score: 88% 70% of our employees is shareholder
Slide 9: Our integrated model continues under one brand
To create and preserve wealth for our clients and society in a sustainable way Our integrated model continues under one brand Private Clients Wholesale & Institutional Clients Investment Banking Clients
Slide 10: Our mid-term financial targets - A solid business model
Our mid-term financial targets - A solid business model CET1 ratio Efficiency ratio Return on CET1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle 10
Slide 11: Annual results 2021
Annual results 2021
Slide 12: 2021: Very strong overall performance
2021: Very strong overall performance Results & Expenses Assets under Capital & income management loan losses Net result €143.8m Operating expenses (2020: €49.8m) AuM €112.1bn Strong capital position €409.9m (+13%) CET 1 ratio 23.7% (+10%) Underlying net result: (2020: 24.3%) €159.9m (2020: €51.0m)
Slide 13: Growth within all parts of the AuM mix
Growth within all parts of the AuM mix Assets under management in 2016 – 2021 € bn 112 99 Private Clients 88 Private Clients – 69 67 investment strategies 55 Wholesale & Institutional Clients – investment strategies Wholesale & Institutional Clients – fiduciairy management 2016 2017 2018 2019 2020 2
Slide 14: Net result at €143.8m
Net result at €143.8m Key drivers of net result €m 22.0 -38.2 20.0 -30.3 48.2 -18.4 1.5 89.1 188.6 172.4 172.4 162.1 138.9 140.4 143.7 143.8 49.8 49.8 Total 2020 Commission Interest Income from Result on Operating Impairments Tax Other Total 2021 securities and financial expenses associates transact
Slide 15: Private Clients: exceptionally high inflows reflect our unique wealth management position
Private Clients: exceptionally high inflows reflect our unique wealth management position Private Clients: AuM Private Clients: Revenue composition € bn Total = €387.0m 3.8 5.7 1% 3.8 36% 44.6 40.8 63% 35.1 31.3 31.3 Commission Interest Other 31/12/2020 Net inflow Market Acquisition 31/12/2021 AuM p
Slide 16: Wholesale & Institutional Clients: AuM stable
Wholesale & Institutional Clients: AuM stable Wholesale & Institutional Clients: AuM € bn 3.8 -1.4 -2.6 67.8 66.4 67.6 63.8 63.8 31/12/2020 Net inflow Net inflow Market 31/12/2021 fiduciary investment performance management strategies 16
Slide 17: Sharp increase in annualised recurring management fees
Sharp increase in annualised recurring management fees Annualised recurring fees €m +67% +33% +8% +16% 359.5 249.6 270.3 215.3 YE2018 YE2019 YE2020 YE2021 17
Slide 18: Investment Banking Clients: Focused strategy leads to strong deal flow
Investment Banking Clients: Focused strategy leads to strong deal flow Investment Banking Clients: Commission €m 55.3 49.5 48.9 2019 2020 2021 18
Slide 19: Stable interest income in 2021
Stable interest income in 2021 Interest income Average volume charged negative interest rates €m € bn 175.3 4.1 152.1 153.6 2.5 1.2 0.6 2019 2020 2021 H1 2020 H2 2020 H1 2021 H2 2021 19
Slide 20: Increased operating expenses driven by organic and inorganic growth
Increased operating expenses driven by organic and inorganic growth Operating expenses €m 7.4 12.0 2.7 16.0 399.8 402.5 409.9 384.1 371.8 371.8 387.8 2019 2020 Operating Incidental & Regulatory levies Other 2021 expenses from variable acquisitions remuneration 20
Slide 21: Improvement in credit quality leads to decrease in loan loss provisions
Improvement in credit quality leads to decrease in loan loss provisions Loan loss provision per stage Additions to loan loss provisions €m €m 31/12/2020 31/12/2021 % change -27 bps* +4 bps* -29 bps* Stage 1 3.4 3.6 6% Stage 2 8.7 3.5 -60% 1.9 Stage 3 51.9 42.4 -18% Total 64.1 49.5 -23% -12.1 -11.7 2
Slide 22: Strong capital position
Strong capital position Common Equity Tier 1-ratio % -3.7 2.1 -0.4 1.3 24.3 23.7 23.7 22 20.7 20.7 2020 Impact Mercier Retained profit TREA Other 2021 Vanderlinden 2021 optimisation 22
Slide 23: Overview of our financial targets
Overview of our financial targets Common Equity Tier 1 ratio Dividend pay-out ratio* 50-70% 15-17% 23.8% 24.3% 23.7% 20.3% 21.1% 65% 56% 61% 57% 53% 2017 2018 2019 2020 2021 2025 2017 2018 2019 2020 2021 2025 Efficiency ratio Return on Common Equity Tier 1* 70-72% 10-12% 79.4% 85.7% 76.2% 75.5% 68.9
Slide 24: Q1 2022
Q1 2022
Slide 25: Q1 2022: strong overall performance
Q1 2022: strong overall performance Results & Assets under Capital & income management loan losses Net result €25.1m (2021 Q1: €33.1m) AuM €106.3bn Strong capital position (-5% since 2021) CET 1 ratio 20.8% Underlying net result: (2021: 23.7%) €35.7m (2021 Q1: €33.7m) Commission Client assets €125.5
Slide 26: Financial targets
Financial targets
Slide 27: CET1 ratio target: 15% plus a 2.5% M&A add-on for bolt-on acquisitions
CET 1 ratio target: 15% plus a 2.5% M&A add-on for bolt-on acquisitions We intend to pay out excess capital to shareholders in 2022 and 2023, subject to regulatory approval 20.8% Excess capital 3.3% €145m 2.5% M&A add-on €110m 17.5% 15% Target Q1 2022 Target CET 1 ratio 27
Slide 28: Efficiency ratio target: 70%
Efficiency ratio target: 70% Income growth combined with continued disciplined cost management to boost efficiency 85.7% 79.6% 79.4% 76.2% 75.5% 68.9% 70% 2016 2017 2018 2019 2020 2021 Target 28
Slide 29: Return on CET1 target: 12%
Return on CET 1 target: 12% Through-the-cycle 15.7% 12.0% 10.4% 10.5% 9.8% 7.3% 4.4% 2016 2017 2018 2019 2020 2021 Target 29
Slide 30: Our mid-term financial targets – A solid business model
Our mid-term financial targets – A solid business model CET1 ratio Efficiency ratio Return on CET1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle Dividend pay-out of 50–70% of underlying net result attributable to shareholders 30
Slide 31: 3. 2021 Remuneration Report
3. 2021 Remuneration Report Item for an advisory vote
Slide 32: 4a. Adoption of the 2021 Financial Statements
4a. Adoption of the 2021 Financial Statements Voting item
Slide 33: 4b. Adoption of a cash dividend of €2.00 per Class A ordinary share
4b. Adoption of a cash dividend of €2.00 per Class A ordinary share Voting item
Slide 34: 5. Climate strategy and action plan
5. Climate strategy and action plan Item for discussion
Slide 35: Sustainability: net-zero wealth manager by 2050
Sustainability: net-zero wealth manager by 2050 To achieve the commitment to become a net-zero Climate change & biodiversity wealth manager by 2050, we have set ambitious annual carbon footprint reduction targets – including: • for discretionary AuM (-7% per year from Smart & circular economy base y
Slide 36: Our primary carbon footprint is via our AuM
Our primary carbon footprint is via our AuM €112.1bn AuM ~ 99% of impact €16.3bn Balance sheet ~ 1% of impact 1,654 FTE Own organisation ~ 0.1% of impact 36
Slide 37: Limiting climate change is an integral part of our strategy
Limiting climate change is an integral part of our strategy Ambition Action Accountability and transparency In line with the Paris Agreement We have translated our We regularly report on the goals, all actors have a role to objectives into KPIs for 2022 progress made with our climate limit global wa
Slide 38: KPIs for 2022-2023
KPIs for 2022-2023 KPIs Targets Decrease in carbon emissions: a. Direct emissions through our organisation -7.0% per FTE per year (base year 2019) b. Alignment of our investment solutions with the Paris Agreement: 7% average annual emission intensity reduction (base year i. Kempen funds and discreti
Slide 39: 6a. Discharge of the members of the Management Board
6a. Discharge of the members of the Management Board from liability for their management in the 2021 financial year Voting item
Slide 40: 6b. Discharge of the members of the Supervisory Board
6b. Discharge of the members of the Supervisory from liability for their supervision of the management conducted in the 2021 financial year Voting item
Slide 41: 7. Appointment of external auditor
7. Appointment of external auditor Voting item
Slide 42: 8a. Reappointment of Richard Bruens to the Management Board
8a. Notice of the intended reappointment of Richard Bruens as a member of the Management Board Item for discussion
Slide 43: 8b. Reappointment of Arjan Huisman to the Management Board
8b. Notice of the intended reappointment of Arjan Huisman as a member of the Management Board Item for discussion
Slide 44: 8c. Reappointment of Constant Korthout to the Management Board
8c. Notice of the intended reappointment of Constant Korthout as a member of the Management Board Item for discussion
Slide 45: 8d. Appointment of Wendy Winkelhuijzen to the Management Board
8d. Notice of the intended appointment of Wendy Winkelhuijzen as a member of the Management Board Item for discussion
Slide 46: 8e. Appointment of Jeroen Kroes to the Management Board
8e. Notice of the intended appointment of Jeroen Kroes as a member of the Management Board Item for discussion
Slide 47: 9a. Notice of vacancy and profile; opportunity to make a recommendation
9a. Notice of vacancy and profile; opportunity to make a recommendation Voting item if a recommendation is made
Slide 48: 9b. Reappointment of Maarten Muller to the Supervisory Board
9b. Reappointment of Maarten Muller as a member of the Supervisory Board Voting item
Slide 49: 9c. Vacancies arising at the 2023 annual general meeting
9c. Announcement of the vacancies that will arise at the annual general meeting in 2023 Item for discussion
Slide 50: 10. Authorisation to purchase shares in own capital
10. Authorisation to purchase shares in own capital or depositary receipts for those shares Voting item
Slide 51: 11a. Designation of Management Board to issue ordinary shares
11a. Designation of the Management Board as the competent body to issue ordinary shares Voting item
Slide 52: 11b. Designation to limit or exclude pre-emptive rights
11b. Designation of the Management Board as the competent body to limit or exclude the pre emptive right when ordinary shares are issued Voting item
Slide 53: 12. Any other business and closure of meeting
12. Any other business and closure of meeting
Slide 54: Thank you
ee s-Hertogenbosch, 25 May 2022 Annual general meeting Thank you