Swissquote Group Holding Ltd. · SIX:SQN

Swissquote — H1 2021 Earnings Presentation

35 slides from Swissquote's earnings presentation, Aug 6, 2021

  1. Slide 1: Results for the first half of 2021

    20 20 21 Results for the first half of 2021 August 6th, 2021 1

  2. Slide 2: Agenda

    AGENDA • First half 2021 • Business update • New guidance 2021 • Balance sheet • Yuh • Appendix 2

  3. Slide 3: First half 2021

    | First half 2021 4 Section | @Swissquote

  4. Slide 4: Strong account opening requests

    Strong account opening requests Trading accounts eForex accounts Saving accounts Robo-Advisory accounts Account opening requests Accounts (#) Opening requests (#) 500,000 150,000 459,800 400,000 120,000 117,795 300,000 90,000 200,000 60,000 100,000 30,000 0 0 H1-2017 H2-2017 H1-2018 H2-2018 H1-2019

  5. Slide 5: 49,552 new accounts in H1-2021

    49,552 new accounts in H1-2021 CHF Average deposit per account Distribution of H1 2021 Net revenues 120,000 109,265 2016-2020 New clients 2021 100,000 61% 9% 80,000 2000-2005 7% 60,000 2006-2010 40,000 12% 20,000 2011-2015 11% 0 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 5

  6. Slide 6: Client assets at CHF 50.2 billion

    Client assets at CHF 50.2 billion CHF billion Client assets Net new money Margin on assets basis points 55 150 50.2 50 140 4.9 45 130 40 117 120 35 110 30 100 25 90 20 80 15 70 10 60 5 50 H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 6

  7. Slide 7: Record net new money

    Record net new money CHF billion Organic Non organic 5.0 4.9 4.5 4.0 3.4 3.5 3.0 3.0 2.5 2.3 2.0 1.5 1.0 0.5 - H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 7

  8. Slide 8: H1-2021 net new money CHF 4.9 billion

    H1-2021 net new money CHF million 2'797.4 (57%) CHF 4.9 billion 416.5 (8%) 1'416.3 282.6 (29%) (6%) 8

  9. Slide 9: Net revenues of CHF 264.4 million

    Net revenues of CHF 264.4 million CHF million Fee and commission Interest Trading eForex Crypto assets Negative interest & others 290 264.4 240 +68.9% 190 140 90 40 -10 H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 9

  10. Slide 10: Net revenues by Swissquote location

    Net revenues by Swissquote location Asia Pacific Swiss domestic Evolution of international revenues 2% 65% CHF million > 80M Middle East 80 4% 60 Europe 4% 40 > 30M 20 Swiss non-domestic 25% 0 H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 Current locations As of 30.06.2021

  11. Slide 11: Net revenues by profile of customers

    Net revenues by profile of customers B2C 78% Evolution of B2B revenues CHF million 60 > 55M 40 > 20M 20 0 H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 B2B 22% Asset managers Money managers White labels Investment funds Fund managers Banks and brokers 11

  12. Slide 12: Strong increase in profitability

    Strong increase in profitability CHF million Pre-tax profit Net profit Pre-tax profit margin 160 80% 140 134.6 70% 120 116.4 60% 100 50.9% 50% 80 40% 60 30% 40 20% 20 10% 0 0% H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 12

  13. Slide 13: Swissquote a technology powerhouse

    Swissquote a technology powerhouse 33% 18% 28% 58 nationalities 904 FTE 15% 24% Europe 1/3 female Asia Middle East 55% 13% part-time 13% Average age is 34 14% 6% Sales, Trading and Marketing Technology Foreign offices Turnover of 10% Compliance & Risk Infrastructure and support 94% Permanent Tempora

  14. Slide 14: Building brand awareness and consideration

    Spontaneous Brand Awareness We build the awareness and Consideration of our brand with Sponsoring, TV-Advertising, Online-Marketing and Social Media. Top of mind TOTAL _ 60% of the global Marketing budget is invested in Branding and Product Marketing. 14

  15. Slide 15: Equity reached CHF 544 million

    Equity reached CHF 544 million CHF million Total equity Capital ratio FINMA requirement 600 35% 544.0 550 Internaxx acquisition 30% 500 450 25% 24.3% 400 20% 350 15% 300 11.2% 250 10% 200 5% 150 100 0% H1-2017 H2-2017 H1-2018 H2-2018 H1-2019 H2-2019 H1-2020 H2-2020 H1-2021 15

  16. Slide 16: First half year of 2021 in a nutshell

    First half year of 2021 in a nutshell Net revenues in CHF Pre-tax profit in CHF Net profit in CHF 264.4 million 134.6 million 116.4 million Pre-tax profit margin of 50.9% Net profit margin of 44.0% Net new money in CHF Client assets in CHF Core capital ratio + 4.9 billion 50.2 billion 24.3% ◚ Accoun

  17. Slide 17: Business update

    Business update 4 meen @Swissquote

  18. Slide 18: Securities trading

    Securities trading: Securities trading revenues by nature Crypto trading as a strong USP in banking industry 20% Switzerland Europe Dubai Singapore 80% Transaction based Asset based Securities trading revenues Securities trading accounts CHF million Accounts (#) Securities trading assets by type of

  19. Slide 19: Crypto assets: customers and volumes

    24 NEW CRYPTO ASSETS NOW AVAILABLE Swissqoin Dogecoin Polkadot ✔ TRADING ✔ CUSTODY LENDING STAKING EXCHANGE (soon) (soon) (soon) BEHAVIOUR AND CUSTOMER PROFILE CHF 1.9 BILLION 9% ASSETS UNDER CUSTODY 26% 10% 68% 32% 90% 65% MORE THAN60,000 CUSTOMERS HAVE TRADED CHF 11.1 BILLION Crypto investors Mult

  20. Slide 20: Competitive and transparent pricing

    Competitive and transparent pricing LOW BETTER DEALS ACCOUNT COSTS ON TRANSACTIONS 0  Zero account maintenance fee  Custody fees capped: 1.50.- 9.- Options & Futures From CHF 1.50 Funds & Structured products CHF 9.- flat 19.- CHF 50 / quarter Flat fees per trade From CHF 19.-  Real-time prices 

  21. Slide 21: Awards, new certificates and updates

    AWARDS 7 NEW CERTIFICATES UPDATES MANAGED ASSETS CHF million 500 440.6 Rainbow rights 400 Certificate won a 300 Swiss Derivative 200 Award in the category 100 Best ESG Product 21

  22. Slide 22: eForex: constant increase of volumes

    eForex: constant increase of volumes eForex revenues by nature Switzerland Europe Dubai Hong Kong 18% 82% Volume driven Asset based CHF million eForex revenues eForex volume CHF billion eForex assets by type of customer 70.0 800 746.8 64% 60.0 700 50.0 600 36% 40.0 500 B2B B2C 30.0 400 eForex revenu

  23. Slide 23: +100 single stock CFDs now available

    Indices Fixed income Single stocks Commodities Precious metals FX Indice Commodities Precious metals FX Indices Fixed income Single stocks Commod Indices Fixed income Single stocks Commodities Precious metals FX Indices Fi Commodities Precious metals FX Indices Fixed income Single stocks Commodities

  24. Slide 24: New guidance 2021

    New guidance 2021 Section III

  25. Slide 25: New guidance 2021

    New guidance 2021 CHF million Net revenues Pre-tax profit Pre-tax margin 500 60% 465 450 55% 400 50% +47% 350 45% 317.3 300 40% 250 35% 210 200 +99% 30% 150 25% 105.6 100 20% 50 15% 0 10% 2017 2018 2019 2020 2021E 25

  26. Slide 26: July 2021 in a nutshell

    July 2021 in a nutshell Net revenues in CHF Pre-tax profit in CHF 28.6 million 14.1 million Pre-tax profit margin of ~49% ◚ Net new money in CHF Client assets in CHF + 0.7 billion 51.5 billion Account opening requests Net number of new accounts 8,295 5,591 26

  27. Slide 27: Balance sheet

    Balance sheet Section IV @Swissquote

  28. Slide 28: Balance sheet as at June 30th, 2021

    Balance sheet as at June 30th, 2021 Total assets Total liabilities and equity To t a l a s s e t s Central bank deposits 1,879.4 1,879.4 (free of negative interests) 8.6 billion in CHF 1,790.1 3,269.3 3,269.3 Due to customers in CHF 2,904.8 (cash deposits in trading, saving and eForex 15.4% increase

  29. Slide 29: Yuh

    Yuh Section V @Swissquote

  30. Slide 30: Yuh: Pay, Invest, Save

    Pay Invest Free multi-currency Crypto: 1% Mastercard debit card Trading commission: 0.5% Number of Example for stock transaction: accounts opened Invest CHF 1’000 since launch Pay CHF 5 20,000 CHF 0 custody fees - Product universe: Save  111 blue-chip stocks Automate payments  12 trending themes A

  31. Slide 31: Appendix

    Appendix Section VI @Swissquote

  32. Slide 32: Meet us in 2021 / 2022

    MEET US IN 2021 / 2022 24 November 16 September 3rd Baader Small-Cap Day Credit Suisse Equity Forum Munich, Germany Zürich, Switzerland September 16 November 04 March 2022 17 Investora ZKB Swiss Equity Forum Presentation of FY 2021 Results Zürich, Switzerland Zürich, Switzerland 32

  33. Slide 33: Key figures for the 2021 business year

    Key figures for the 2021 business year 6 months ended 30 June Comparison with previous half year 2021 2020 Change Change in % H1-2021 H2-2020 Change Change in % in CHF thousand, except where specified Net fee & commission income 87,117.4 78,534.2 8,583.2 10.9% 87,117.4 67,447.6 19,669.8 29.2% Net cr

  34. Slide 34: Key figures for the 2021 business year (cont.)

    Key figures for the 2021 business year (cont.) 30.06.2021 30.06.2020 Change Change in % 30.06.2021 31.12.2020 Change Change in % in CHF thousand, except where specified Trading accounts 391,373 315,185 76,188 24.2% 391,373 338,330 53,043 15.7% Saving accounts 18,793 19,279 -486 -2.5% 18,793 19,037 -

  35. Slide 35: Swissquote office locations

    Gland – Zurich – Bern – London – Dubai – Malta – Hong Kong – Luxembourg – Singapore 35

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