Bellevue Group Ag · SIX:BBN
Bellevue — H1 2022 Earnings Presentation
49 slides from Bellevue's earnings presentation, Jul 28, 2022
Slide 1: Bellevue Group half-year results 2022
Bellevue Group half-year results 2022 Presentation for investors, analysts and the media Kusnacht, July 28, 2022
Slide 2: Disclaimer
Disclaimer This document was produced by and the opinions expressed are those of Bellevue Group AG («Bellevue») as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation
Slide 3: Agenda
Agenda 1 Overview of H1 2022 André Rüegg, Group CEO 2 H1 2022 Results Michael Hutter, Group CFO 3 Business Update & Outlook André Rüegg, Group CEO 4 Questions & Answers A Appendix 3
Slide 4: Overview of H1 2022
Overview of H1 2022 André Rüegg, Group CEO 4
Slide 5: Highlights H1 2022
OVERVIEW OF H1 2022 Highlights H1 2022 Navigating a "perfect storm" Mixed Consistent Simplified & stronger results for H1 2022 strategy execution platform • Market-induced decline in AuM base • Strategic profile and positioning as a • Strong and flexible organization, accentuated by sharp focus on g
Slide 6: Key figures H1 2022
OVERVIEW OF H1 2022 Key figures H1 2022 Positive development of performance criteria Revenues from asset Income financial Client assets Net new money management services investments 1) CHF 9.6 bn CHF -326 mn CHF 54.1 mn CHF -8.7 mn (31.12.2021: CHF 12.8 bn) (prev. period: CHF 682 mn) (prev. period:
Slide 7: Driver #1: Weakness in small & mid-cap healthcare stocks continues
OVERVIEW OF H1 2022 Driver #1: Weakness in small & mid-cap healthcare stocks continues Performance comparison Large vs. Small/Mid Cap Healthcare Small/Mid Cap healthcare stocks in a CHF mn "perfect storm" since spring 2021 180 -50% • 1st phase: Correction of one-time 160 “COVID-19 booster” stocks (d
Slide 8: Driver #2: Weakness in Asian healthcare stocks continues
OVERVIEW OF H1 2022 Driver #2: Weakness in Asian healthcare stocks continues Performance comparison MSCI World Healthcare vs. Asia Pacific Healthcare Asia with a tailwind during the CHF mn pandemic, euphoria fades due to 140 -30% regulatory pressure 130 • 1st phase: Chinese healthcare 2 companies in
Slide 9: Bellevue healthcare strategies in a "perfect storm"
OVERVIEW OF H1 2022 Bellevue healthcare strategies in a "perfect storm" Focus on innovation and above-average growth face headwinds Medtech Holdings Generics Services Pharma Biotech Europe APAC Small Large USA Mid EM 20 - 35 25 - 35 35% 25% 15% 25% 40 35% 25% 15% 25% 40 40 - 60 30 - 50 40 - 60 40 -
Slide 10: Bellevue healthcare strategies in a "perfect storm"
OVERVIEW OF H1 2022 Bellevue healthcare strategies in a "perfect storm" Strong performance in 2020 – downturn in H1 2021 – interest rate hikes put valuations under renewed pressure Performance Bellevue Healthcare strategies in % (CHF) Sharp upturn in US interest rates December 31, 2019 – June 30, 20
Slide 11: Market related decline in AuM base amplified by distinctive positioning
OVERVIEW OF H1 2022 Market related decline in AuM base amplified by distinctive positioning Development in assets under management 2017 – H1 2022 AuM temporarily dips to average level CHF mn of 2019 • Significant decline in AuM of approx. 14'000 12'793 -24.8% CHF 3.2 bn or 25% in H1 12'038 12'000 •
Slide 12: Very stable client base – marginal outflow
OVERVIEW OF H1 2022 Very stable client base – marginal outflow Change in AuM in H1 2022 Solid client base reflects high level of CHF mn trust and long-term orientation 12'793 • Significant decline in AuM base largely attributable to negative performance -154 -172 • Negligible asset outflow (<3% of t
Slide 13: H1 2022 Results
H1 2022 Results Michael Hutter, Group CFO 13
Slide 14: Mixed earnings power in tandem with market trend
H1 2022 RESULTS Mixed earnings power in tandem with market trend Management fees and average AuM, H1 2017 – H1 2022 Business model clearly dependent on CHF 1 000 CHF mn -19.2% general stock market environment 70'000 14'000 • Linear decline in management fees compared to market developments 60'000 12
Slide 15: Consolidated results
H1 2022 RESULTS Consolidated results Total operating income • Reduction of asset management services Revenues AM services Income financial Other income is driven by lower AuM; no significant (CHF Mio.) investments (CHF Mio.) (CHF Mio.) change in performance fees and other n.m. net commission income
Slide 16: Consolidated results
H1 2022 RESULTS Consolidated results Operating expenses • Bellevue's entrepreneurial compensation Personnel expenses Operating expenses (CHF mn) (CHF mn) model led to lower performance-related compensation in the wake of lower -39.0% +0.0% operating income • Headcount unchanged vs prior-year period
Slide 17: Consolidated financial statements
H1 2022 RESULTS Consolidated financial statements Consolidated income statement 1.1.-30.06.2022 1.1.-30.06.2021 Change • Decline in operating income due to Revenues from asset lower average AuM base (23%) and 54 119 70 395 - 16 276 market-induced losses on financial management services investments (
Slide 18: Business Update & Outlook
Business Update & Outlook André Rüegg, Group CEO 18
Slide 19: Bellevue – a "pure play" asset manager
BUSINESS UPDATE & OUTLOOK Bellevue – a “pure play” asset manager Differentiated strategic company profile with clear positioning Ongoing development of more Established distinct company profile 1993 • Adhere to proven strategy as starting Credo point “We eat our own cooking” Focused & Attractive Cle
Slide 20: Priorities of forwards and growth strategy
BUSINESS UPDATE & OUTLOOK Priorities of forwards and growth strategy Profitable growth = product quality + innovation + client dynamics • Primary focus on the quality and growth of existing products, constantly strengthening "talent pool" «Grow with the products» • Expansion of product offering in t
Slide 21: Targeted expansion of new "Private Markets" unit
BUSINESS UPDATE & OUTLOOK Targeted expansion of new "Private Markets" unit Strategic road map and considerations – overview 2019 2020 2021 2022 2023-25 Strategic objectives • Acquisition of • 3 new investments • 2 transactions / • 3 new investments • 2-3 new investments • Active participation in adb
Slide 22: Targeted expansion of new "Private Markets" unit
BUSINESS UPDATE & OUTLOOK Targeted expansion of new "Private Markets" unit Attractive positioning in direct equity investment business Facts & Figures Profile & Highlights 2022 Strategy: • “Deal-by-deal" investor club consisting of wealthy private investors (business owners and families) Financial T
Slide 23: Targeted expansion of new "Private Markets" unit
BUSINESS UPDATE & OUTLOOK Targeted expansion of new "Private Markets" unit Launch of highly specialized and scalable product strategies «Bellevue Entrepreneur Private I» Project «Bellevue Global PE Opportunities» Strategy: Objectives: • Co-investment fund with the adbodmer investor group • Structura
Slide 24: ESG – Highlights 2022
BUSINESS UPDATE & OUTLOOK ESG – Highlights 2022 Summary of corporate developments Climate strategy 2030 Staff salary study Product-based initiatives • Second carbon footprint measurement • Group-wide staff salary study • Second dedicated ESG strategy – Bellevue • Compensation of CO2 emissions throug
Slide 25: ESG – Highlights 2022
BUSINESS UPDATE & OUTLOOK ESG – Highlights 2022 Environmental measures integrated into company goals CO2 footprint Total emissions 2021 Transportation & Mobility Waste management / recycling Business travel 102 t CO₂ 7% 2% • Public transport, cycling (mass transit, • Collection/recycling of material
Slide 26: StarCapital integration completed
BUSINESS UPDATE & OUTLOOK StarCapital integration completed Latest company developments in Germany • Germany is the most important foreign market, 1/3 of the AuM base, EU market access • Strengthen profile and operations in this strategic target market by pooling existing resources and Status quo &
Slide 27: Summary
BUSINESS UPDATE & OUTLOOK Summary Strong position enables a solid performance despite the challenging environment and temporary correction • Solid, high quality AuM base and attractive positioning creates sustained earnings power, intact A solid business base growth prospects with intact growth • Hi
Slide 28: Outlook for H2 2022
BUSINESS UPDATE & OUTLOOK Outlook for H2 2022 Current momentum in the healthcare sector enables recovery despite difficult environment Performance Bellevue Healthcare strategies in % (CHF) Potential stabilization on the interest rate June 30, 2021 – July 22, 2022 front will calm down the "system“ –
Slide 29: Outlook H2 2022
BUSINESS UPDATE & OUTLOOK Outlook H2 2022 Long-term goals reiterated Assets under management • Steady expansion of business base targeted, but depends on the market development 1 (AuM) • Organic new money growth in a range of 5-10% p.a. • Asset-based revenues with higher margin quality and long-term
Slide 30: Questions & Answers
Questions & Answers 2 Bellevue | 20
Slide 31: Appendix
Appendix 28 Bellevue | 3:
Slide 32: Additional details of H1 2022 results
Additional details of H1 2022 results 32
Slide 33: Consolidated financial statements
ADDITIONAL DETAILS OF H1 2022 RESULTS Consolidated financial statements Consolidated income statement CHF 1’000 1.1.-30.06.2022 1.1.-30.06.2021 Change Revenues from asset management services 54 119 70 395 - 16 276 Income from financial investments - 8 733 3 039 - 11 772 Net other income 1 398 199 +
Slide 34: Consolidated financial statements 2022
ADDITIONAL DETAILS OF H1 2022 RESULTS Consolidated financial statements 2022 Consolidated balance sheet • Asset mix is as follows: CHF million - CHF 100.6 mn current Assets Liabilities - CHF 66.9 mn non-current • Liability mix is divided as follows: - CHF 26.2 mn current Cash 37 33 Liabilities - CHF
Slide 35: Alternative Performance Indicators
ADDITIONAL DETAILS OF H1 2022 RESULTS Consolidated financial statements Alternative Performance Indicators CHF 1’000 1.1.-30.06.2022 1.1.-30.06.2021 Change Operating income 46 784 73 633 - 26 849 Personnel expenses - 20 534 - 33 569 + 13 035 Other operating expenses - 7 104 - 7 096 -8 Operating expe
Slide 36: Key figures (1/2)
ADDITIONAL DETAILS OF H1 2022 RESULTS Consolidated financial statements Key figures (1/2) 1.1.-30.06.2022 1.1.-30.06.2021 Change Consolidate income statement Cost/Income Ratio 59.1% 55.2% - Earnings per share (in CHF) 1.07 1.69 - 36.7% 30.06.2022 31.12.2021 Change Asset under management (in CHF mill
Slide 37: Key figures (2/2)
ADDITIONAL DETAILS OF H1 2022 RESULTS Consolidated financial statements Key figures (2/2) 30.06.2022 31.12.2021 Change Staff (FTEs) Number of staff (at cutoff date) 93.2 94.0 - 0.9% Share price Closing price, Bellevue Group registered shares (in CHF) 32.35 40.00 - 19.1% High / Low (in CHF, 1.1. to 3
Slide 38: Shareholder base
ADDITIONAL DETAILS OF H1 2022 RESULTS Shareholder base Structure of the shareholder base as of June 30, 2022 Attractive value creation leads to Non-registered public shareholders stable shareholder base (n/a) • Strong commitment of core shareholders 12.4% Core • Substantial increase in management/ s
Slide 39: Bellevue Group share (BBN SW)
ADDITIONAL DETAILS OF H1 2022 RESULTS Bellevue Group share (BBN SW) Compelling performance compared to relevant indexes and other asset managers Total return in CHF (5 years) Indexed to 100 (in %) 400 Market capitalization as of Bellevue Group AG 30.06.2022 300 CHF 435 mn +177.3% Partners Group Hold
Slide 40: Business profile & strategy
Business profile & strategy 40
Slide 41: Bellevue a "pure play" asset manager
BUSINESS PROFILE & STRATEGY Bellevue a "pure play” asset manager A clear mission statement As a specialty investment manager, we create attractive returns and performance for our clients and shareholders. We apply our expertise and competence to important issues of our times and are a responsible co
Slide 42: Attractive offering with clearly differentiated investment expertise
BUSINESS PROFILE & STRATEGY Attractive offering with clearly differentiated investment expertise Good balance between “specialty” and “diversification” – for investors and shareholders Investment companies Attractive direct investments Specialized growth strategies • Biotech • Proprietary "deal-by-d
Slide 43: International reach, locally anchored
BUSINESS PROFILE & STRATEGY International reach, locally anchored Ongoing development of international business reach with a strong corporate culture High workforce stability and quality • Constantly growing talent pool 7 London • Very low voluntary turnover rate • Strong commitment from key individ
Slide 44: Broad and robust product range
BUSINESS PROFILE & STRATEGY Broad and robust product range Performance snapshot as of mid-year illustrates the impact of global market turmoil Specialized healthcare strategies Traditional and alternative investment strategies ** Absolute performance H1 2022, in USD Absolute performance H1 2022, in
Slide 45: Corporate ESG – social practices
BUSINESS PROFILE & STRATEGY Corporate ESG – social practices Value for the client is created by employees 28% Health/Wellness Diversity Talent women in the workforce • Free gym memberships for • Balanced gender & age mix • Multi-stage, participatory employee employees selection process (assessment,
Slide 46: ESG at product level
BUSINESS PROFILE & STRATEGY ESG at product level ESG integration across all investment strategies – dedicated bespoke ESG strategies Dedicated ESG strategies (Art 8 EU SFDR) ESG integrated strategies (Art 8 EU SFDR) • Tailored to specific client needs • Compliant with global standards and norms (UN
Slide 47: Why turn to Bellevue Group?
BUSINESS PROFILE & STRATEGY Why turn to Bellevue Group? Highlights Bellevue Group • Independent, efficient, entrepreneurial management style ever since establishment in 1993 “Pure” asset manager with • “Multi-boutique” with unique range of investment competencies and good balance between “specialty”
Slide 48: Corporate Events & Contact
APPENDIX Corporate Events & Contact Corporate Events February 28, 2023 Publication annual report 2022 March 21, 2023 Annual General Meeting 2023 Investor Relations Bellevue Group André Rüegg Michael Hutter Phone +41 44 267 67 00 CEO Bellevue Group CFO Bellevue Group Fax +41 44 267 67 01 Phone +41 44
Slide 49: Bellevue Group AG Seestrasse 16 CH-8700 Küsnacht/Zürich
Bellevue Group AG Seestrasse 16 CH-8700 Küsnacht/Zürich T +41 44 267 67 00 info@bellevue.ch www.bellevue.ch 49