Slide 1: Leonteq AG Half-Year 2022 Results
LEONTEQ AG HALF-YEAR 2022 RESULTS ZURICH, 21 JULY 2022
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, documents and information used therein or distributed in the context of this presentation do not constitute or form part of and
Slide 3: Highlights & Business Update
HIGHLIGHTS & BUSINESS UPDATE LUKAS RUFLIN | CEO
Slide 4: We delivered record results in unprecedented market conditions
WE DELIVERED RECORD RESULTS IN UNPRECEDENTED MARKET CONDITIONS Key figures H1 2022 289.2 143.4 145.8 118.0 6.45 H1 2021: 205.8 H1 2021: 125.2 H1 2021: 80.6 H1 2021: 74.4 H1 2021: 4.04 +41% +15% +81% +59% +60% Operating income Operating expenses Profit before taxes Group net profit Earnings per share
Slide 5: We continued our strong track record of revenue growth
WE CONTINUED OUR STRONG TRACK RECORD OF REVENUE GROWTH Quarterly economic revenues since inception (CHF million)1 220 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 Economic revenues are defined as fee income and trading income earn
Slide 6: We executed our key initiatives with a clear focus
WE EXECUTED OUR KEY INITIATIVES WITH A CLEAR FOCUS January 2022 January 2022 January 2022 February 2022 February 2022 April 2022 May 2022 June 2022 July 2022 Range Code of Cooperation New funds VP Bank Crypto Inaugural Two pricing New extended with for distribution innovative Conduct & Market trophi
Slide 7: We launched a new innovative issuance model
WE LAUNCHED A NEW INNOVATIVE ISSUANCE MODEL TO REDUCE TIME-TO- MARKET AND COSTS FOR BANKS TO JOIN OUR ECOSYSTEM Guarantee model Sponsor model Partner model • StructuringHub1-issued • Leonteq-issued structured structured product • Partner-issued product product guaranteed by 3rd guaranteed by 3rd par
Slide 8: We expanded our ecosystem for investment solutions
WE EXPANDED OUR ECOSYSTEM FOR INVESTMENT SOLUTIONS Self Private Regional Universal directed banks banks banks investors sp.leonteq.com Independent asset Institutional managers investors Family offices Digital solutions & Clients & connectivity investors Content, White- product and labelling technolo
Slide 9: Financial Performance
FINANCIAL PERFORMANCE MARCO AMATO | DEPUTY CEO & CFO
Slide 10: Record results on the back of unprecedented market conditions
RECORD RESULTS ON THE BACK OF UNPRECEDENTED MARKET CONDITIONS Total operating income Total operating expenses Group net profit (CHF million) (CHF million; bubble: cost-income ratio) (CHF million, bubble: tax rate) +59% +41% +15% 118.0 289.2 143.4 81.3 205.8 212.0 125.2 118.1 74.4 1 H1 2021 H2 2021 H
Slide 11: Reduced client activity compensated by strong net trading result
CHALLENGING MARKET ENVIRONMENT RESULTED IN REDUCED CLIENT ACTIVITY COMPENSATED BY STRONG NET TRADING RESULT Number Volatilityofvsclient equitytransactions market development Net fee income by region Net trading result (CHF million) (CHF million) 179.6 40 5000 170.0 4800 35 4600 136.7 60.0 4400 115.6
Slide 12: Continued progress on diversification of key business metrics
CONTINUED PROGRESS ON DIVERSIFICATION OF KEY BUSINESS METRICS Economic revenues by business type1 Platform assets by issuer category2 Turnover by issuer category2 (excluding hedging result) 32% 29% 39% 47% 48% 47% 54% 52% 58% 12% 15% 12% 13% 16% 10% 53% 59% 49% 53% 46% 42% 38% 39% 37% H1 2021 H2 202
Slide 13: Cost increase from strategic investments, variable costs and provisions
COST INCREASE RESULTING FROM CONTINUED STRATEGIC INVESTMENTS, PERFORMANCE DRIVEN VARIABLE COSTS AND PROVISIONS Total Total operating operating expenses expenses (CHF (CHF million) million) H1 2021 reported 125.2 Nearshoring initiatives -2.3 Strategic initiatives 3.6 Performance driven variable costs
Slide 14: Strong capital base of approx. CHF 900 million
STRONG CAPITAL BASE OF APPROX. CHF 900 MILLION Capital base1 (CHF million) 67.0 -54.7 118.0 -24.7 -17.5 890.2 823.2 802.1 Shareholders' Distribution to Allocation to Other Retained earnings Shareholders' Deferred fee Capital equity shareholders OCI effects 2 (net profit H1 2022) equity income base D
Slide 15: Summary & Outlook
SUMMARY & OUTLOOK LUKAS RUFLIN | CEO
Slide 16: Summary & Outlook
SUMMARY & OUTLOOK • Exceptional growth in revenues and profitability in H1 2022 • Strong top line performance driven by heightened market volatility Summary • Record results demonstrate resilience of business and benefits of continued diversification of revenue streams over past years • Continued di
Slide 17: Five-year strategy cycle to deliver 2026 targets
WE WILL CONTINUE TO FOCUS ON AMBITIOUS FIVE-YEAR STRATEGY CYCLE TO DELIVER 2026 TARGETS We are executing a Growth Strategy 2026 based on four … measured against clear targets for 2026. dimensions… OFFERING We are further enlarging and diversifying our offering FINANCIAL TARGETS 2026 across products,
Slide 18: Appendix Financial Results
ote tS CEONTEQ APPENDIX FINANCIAL RESULTS
Slide 19: Income Statement
INCOME STATEMENT (CHF million) H1 2022 H2 2021 H1 2021 Change Change y-o-y vs H2 2021 Net fee income 115.6 136.7 170.0 (32%) (15%) Net trading result 179.6 77.0 35.4 407% 133% Net interest result (7.9) (3.3) (2.4) 229% 139% Other ordinary income 1.9 1.6 2.8 (32%) 19% Total operating income 289.2 212
Slide 20: KPIs and Business Metrics
KPIs AND BUSINESS METRICS H1 2022 H2 2021 H1 2021 Change Change y-o-y vs H2 2021 Return on equity 29% 21% 22% 7PP 8PP Earnings per share 6.45 4.43 4.04 60% 46% Platform assets (CHFbn) 1 13.5 16.0 15.4 (12%) (16%) of which historic partner business (CHFbn) 1 6.3 7.6 8.0 (21%) (17%) of which new partn
Slide 21: Development of Economic Revenues
DEVELOPMENT OF ECONOMIC REVENUES Monthly economic revenues (CHF million)1 100 80 60 40 20 0 Jan Feb Mar Apr May Jun 2021 2022 1 Economic revenues are defined as fee income and trading income earned and are considered as recognised at trade date without applying IFRS revenue recognition rules; econom
Slide 22: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Dominik Ruggli Leonteq AG Head Investor Relations, Investor Relations Communications & Marketing Europaallee 39 | 8004 Zürich | Switzerland +41 58 800 18 55 investorrelations@leonteq.com www.leonteq.com/investors Follow Us Linkedin Twitter Renato Bolliger Facebook Investo