Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — H1 2024 Earnings Presentation
42 slides from Kempen European High Dividend Fund N.V. N's earnings presentation, August 2024
Slide 1: Investor presentation
Investor presentation August 2024
Slide 2: Van Lanschot Kempen at a glance
Van Lanschot Kempen at a glance Specialist independent Oldest independent financial wealth manager with a institution in the 1,937 FTE capital-light business model Netherlands, founded in 1737 Across four countries Our purpose €157bn €139bn Preserve and create wealth for our clients Client assets Au
Slide 3: Strong track record in delivering on our growth strategy
Strong track record in delivering on our growth strategy Continuous strong AuM growth (€bn) With significant improvement of C/I ratio (%) 139 79.6 >13% CAGR 55 -10pp 69.0 2016 H1 2024 2016 H1 2024 With very limited balance sheet growth (€bn) Delivering attractive dividend and capital returns 16 15 <
Slide 4: Growing further together
Growing further together Be a leading wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium Further capitalise on the momentum in Private Banking Netherlands, and unlock additional growth engines Reap the significant potential for growth in Private Banking Belgium,
Slide 5: 2027 financial targets reflecting our ambitions
2027 financial targets reflecting our ambitions Continued strong growth 10% average annual AuM growth Scalable business model 67% – 70% cost/income ratio Solid capital position 17.5% CET 1 ratio (Basel IV fully loaded) Attractive returns >18% return on CET 1 capital High dividend distribution 70% –
Slide 6: Sustainable and profitable growth with a capital-light business model
Generate sustainable and profitable growth while maintaining a capital-light business model with the target to grow on average 10% in AuM per year Bolt-on Market Organic growth acquisitions performance 6
Slide 7: All our segments are well positioned with clear USPs
All our segments are well positioned with clear USPs Private Clients Investment Investment • Foundation of our business Management Clients Banking Clients • Differentiating with our personal approach and • In-house investment • Specialist investment distinctive investment solutions engine banking ca
Slide 8: Our people make the difference
Our people make the difference Investing in talent development – Van Lanschot Kempen Academy – Young Private Banking program – Cultivating expertise, entrepreneurship, personal approach Nurturing high employee engagement – High satisfaction with 90% engagement score and eNPS >20 – Stimulating and pr
Slide 9: Strong tech capabilities enable scalable organic growth
Strong tech capabilities enable scalable organic growth Strong diversified tech teams GenAI examples First company in NL live with Close business-IT alignment Microsoft 365 Copilot GenAI use cases: six live in production and seven in proof of concept Cloud frontrunner Agile way of working 250,000+ p
Slide 10: Continue track-record of disciplined bolt-on acquisitions
Continue track-record of disciplined bolt-on acquisitions Netherlands Bank cooperation Retail distribution 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bolt-on acquisitions only, no transformational Cultural fit is paramount transactions Focus on opportunities in private banking and Leveraging our e
Slide 11: Our long-term focus demands dedication to sustainability
Our long-term focus demands dedication to sustainability Sustainability targets Discretionary AuM: annual weighted average carbon intensity (WACI) 7% reduction (2019 baseline) Mortgages: annual carbon footprint per m2 9.5% reduction (2023 baseline) Own organisation: annual average carbon intensity p
Slide 12: 2024 half-year results
2024 half-year results August 2024
Slide 13: We continued our strong momentum in H1 2024
We continued our strong momentum in H1 2024 • Strong growth in AuM to €139.3 billion, a 9.4% increase vs 2023 • Net result of €74.5 million, a 44% increase vs H1 2023 • All client segments contributed to the net result • Robust momentum in the Netherlands, especially with entrepreneurial clients • S
Slide 14: Key financial highlights H1 2024 with net result up 44%
Key financial highlights H1 2024 with net result up 44% Net result Operating expenses AuM net inflow CET 1 ratio (Basel III) €74.5m (+44%) €248.2m (+6%) €5.7bn 18.8% (2023: 19.6%) Commission income Cost/income ratio Total AuM CET 1 ratio (Basel IV)* €251.5m (+23%) 69.0% (H1 2023: 74.5%) €139.3bn (+9
Slide 15: All our client segments performed well
All our client segments performed well and contributed positively to our financial targets Private Clients Netherlands Investment Management Clients • Momentum continuing • Reorganisation starting to pay off • Net AuM inflow of €1.8bn • Net AuM inflow of €2.8bn • €71.6m operating profit before tax •
Slide 16: Net result rises to €74.5m on strong commission income
Net result rises to €74.5m on the back of strong commission income Key drivers of net result (€m) -15.7 11.9 -13.0 -3.6 4.1 -1.6 -7.2 47.8 83.8 83.8 82.7 79.1 79.1 81.7 74.5 74.5 51.8 51.8 H1 2023 Commission Interest income Other income Operating Impairments Non-strategic Special and Tax H1 2024 inc
Slide 17: Private Clients Netherlands: high inflow and strong result
Private Clients Netherlands: high inflow and strong result AuM (€bn) 2.9 AuM breakdown (%) 1.8 Other 11% 41.6 Bonds 26% Equities 36.8 36.8 38.6 63% 31/12/2023 Net AuM inflow Market performance 30/06/2024 • Net AuM inflow of €1.8bn: 77% non-discretionary, 23% discretionary; including strong inflow in
Slide 18: Private Clients Belgium: high inflow and strong result
Private Clients Belgium: high inflow and strong result AuM (€bn) 0.7 AuM breakdown (%) 0.9 1.1 Other 5% Bonds 20% 13.0 13.7 Equities 12.1 11.0 11.0 76% 31/12/2023 Net AuM inflow Market performance Acquisition (Accuro) 30/06/2024 • Gaining market share in the attractive Belgian private banking market
Slide 19: Investment Management Clients: capitalising on restructuring
Investment Management Clients: capitalising on restructuring and scalable operating model AuM (€bn) 0.4 -0.2 2.6 1.8 AuM breakdown (%) Other 21% 29% Equities 79.5 79.5 79.9 79.7 82.3 84.1 50% Bonds 31/12/2023 Net investment Net alternative Net fiduciary Market 30/06/2024 strategies investment manage
Slide 20: Investment Banking Clients: profitability returning
Investment Banking Clients: profitability returning as momentum builds Commission income (€m) Operating profit before tax (€m) 10.3 8.4 8.4 31.7 29.0 26.3 24.3 24.0 3.0 1.3 0.4 19.6 17.0 -4.8 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2
Slide 21: Stable margins at all segments
Stable margins at all segments Annualised recurring fees* (€m) Stable margins • Private Clients Netherlands 55bps (2023: 60bps) 468 415 • Evi van Lanschot 37bps (2023: 52bps) 360 380 330 340 • Private Clients Netherlands excl. Evi van Lanschot 58bps 307 (2023: 60bps) • Private Clients Belgium 81bps
Slide 22: First half of 2024 shows resilient interest income
First half of 2024 shows resilient interest income Interest income (€m)* Interest margin (12-month moving average) 1.24% 1.18% 1.11% 108 1.01% 93 89 92 0.98% 76 78 70 0.88% 0.92% H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 • Interes
Slide 23: Higher other income driven by better results
Higher other income driven by better results at various components Other income (€m) Income Income Book value Book value Book value H1 2024 H1 2023 H1 2024 YE 2023 H1 2023 Van Lanschot Kempen Participaties 2.1 2.3 36.4 35.0 43.8 Bolster Investments Coöperatief UA 2.8 2.2 79.1 76.3 69.3 Co-investment
Slide 24: Operating expenses: focus on scalable growth
Operating expenses: focus on scalable growth Operating expenses (€m) Internal FTEs 3.5 10 23 9.6 244.8 248.2 1,844 1,904 1,904 1,914 1,937 235.2 235.2 H1 2023 Staff costs Other H1 2024 30/06/2023 31/12/2023 Accuro Other 30/06/2024 • Income from operating activities increased by 14% and operating exp
Slide 25: Stable loan portfolio
Stable loan portfolio Loan Loan % change Impaired Provision Impaired Coverage €m portfolio portfolio loans ratio ratio 30/06/2024 31/12/2023 30/06/2024 30/06/2024 30/06/2024 30/06/2024 30/06/2024 Mortgages 6,251 6,368 -2% 36 2 0.6% 6% Other loans 2,291 2,182 5% 93 28 4.1% 30% Loan portfolio 8,541 8,
Slide 26: Additions to loan loss provisions
Additions to loan loss provisions Additions to loan loss provisions (€m) -9 bps* 18 bps* 8 bps* • Loan loss provisions relative to average risk-weighted assets worked out at 8 basis points 3.9 • Reflecting the high quality of the loan portfolio, mainly consisting of Dutch 1.7 residential mortgages -
Slide 27: Strong CET 1 ratio at 18.8%, Basel IV fully loaded 18.5%
Strong CET 1 ratio at 18.8%, Basel IV fully loaded 18.5% Common Equity Tier 1 ratio (%) -0.4 -0.4 -0.3 19.6 19.6 19.2 18.8 18.5 18.5 31/12/2023 Accuro Other 30/06/2024 Basel IV 30/06/2024 fully loaded Basel IV impact* fully loaded* • The acquisition of Accuro had a negative impact of 0.4 percentage
Slide 28: Delivering on our 2027 financial targets
Delivering on our 2027 financial targets Average annual AuM growth (€bn) Cost/income ratio Common Equity Tier 1 ratio (Basel III) Target 10% 2027 target 67–70% 2027 target 17.5% Basel IV fully loaded CAGR 18.8% 85.7% 24.3% 23.7% 9.3% 68.9% 73.1% 71.6% 69.0% 20.6% *** 19.6% 18.5% 2020 2021 2022 2023
Slide 29: Delivering on our sustainability and social targets
Delivering on our sustainability and social targets H1 2024 results Discretionary AuM Average annual reduction Annual weighted average carbon intensity 18% vs 2019 7% reduction (2019 baseline) Own organisation 1.47 tonnes CO2 per FTE, Annual average carbon intensity per FTE down 39% vs 2019, down 8%
Slide 30: Growing further together
Growing further together Be a leading wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium Further capitalise on the momentum in Private Banking Netherlands, and unlock additional growth engines Reap the significant potential for growth in Private Banking Belgium,
Slide 31: Appendix
Appendix Amsterdam, 22 August 2024
Slide 32: Overview of net result H1 2024
Overview of net result H1 2024 €m H1 2024 H1 2023 % change Commission income 251.5 203.7 23% - Of which securities commissions 227.4 186.5 22% - Of which other commissions 24.1 17.2 40% Interest income 92.2 107.9 -15% Income from securities and associates 6.9 5.8 18% Result on financial transactions
Slide 33: Key figures by segment H1 2024
Key figures by segment H1 2024 Private Private Investment Investment €m Clients Clients Management Banking Other Total Netherlands Belgium Clients Clients Commission income 113.1 49.8 62.4 24.0 2.2 251.5 Interest income 86.2 4.4 0.4 -0.2 1.5 92.2 Other income 0.5 0.3 0.1 1.3 13.7 16.0 Income from op
Slide 34: Overview of balance sheet as per H1 2024
Overview of balance sheet as per H1 2024 €m 30/06/2024 31/12/2023 €m 30/06/2024 31/12/2023 Cash and cash equivalents and balances at central banks 1,898.7 2,925.3 Due to banks 315.5 250.5 Due from banks 53.6 77.5 Public and private sector liabilities 12,234.5 12,573.8 Derivatives 388.5 342.5 Derivat
Slide 35: Progress on our non-financial KPIs
Progress on our non-financial KPIs Capital KPI Target H1 2024 2023 1 CET1 ratio Basel IV fully loaded 17.5% 18.5% 19.6%1 2 Financial capital 2 Return on equity (CET1) >18% 17.0% 14.2% 3 Cost/income ratio 67-70% 69.0% 71.6% Manufactured capital 4 Performance managed propositions vs their be
Slide 36: High scores on external ESG ratings
High scores on external ESG ratings Governance: 1 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 37: Van Lanschot Kempen share price development and analyst recommendations
Van Lanschot Kempen share price development and analyst recommendations Share price (€) Volume (m) Key metric Value 48 1.0 46 Last close (28 Aug 2024) €41.65 0.9 44 Year range €23.80 – €42.20 42 0.8 40 Market cap (28 Aug 2024) €1.9bn 0.7 38 Average daily volume 48k shares 0.6 36 34 0.5 32 Analyst Re
Slide 38: Diversified shareholderbase
Diversified shareholderbase Shareholderbase Van Lanschot Kempen Per 30-06-2024 Romij 16.9% LDDM Holding Janus Henderson Group FMR Management & employees 9.8% MVDP 53.1% Other 5.6% 5.0% 5.8% 3.9% 38
Slide 39: Shareholder return since 2016
Shareholder return since 2016 Total shareholder return (€m) 85 85 74 61 29 82 806 59 721 61 636 562 501 390 419 331 270 270 Returns 2016- Capital Dividend Dividend Dividend Capital Dividend Capital Dividend Total 2018 return 2019 2020 2021 return 2022 return 2023 return to 2019 2022 2023 shareholder
Slide 40: A modern wealth manager with a rich heritage
A modern wealth manager with a rich heritage Sale of portfolio non-performing real estate loans Van Lanschot Acquisition Acquisition listed on fiduciary UBS’ Dutch wealth Acquisition Acquisition Acquisition of Robeco’s online Amsterdam Acquisition activities of MN management Hof Hoorneman Mercier in
Slide 41: Management Board
Management Board Maarten Edixhoven Jeroen Kroes Damla Hendriks Arjan Huisman Wendy Winkelhuijzen Erik van Houwelingen (1971) (1973) (1985) (1971) (1978) (1965) Chair CFO CRO COO Private Clients NL, Investment Management Private Clients BE Investment Banking Clients Clients Appointed Appointed Appoin
Slide 42: 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