Slide 1: Vontobel full-year results 2017
Vontobel full-year results 2017 Zeno Staub Martin Sieg Castagnola CEO CFO 13 February 2018
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer 13 February 2018 This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factors. These projections and forwar
Slide 3: Overview
Overview 13 February 2018 Highlights Full-year results 2017 Strategy update Outlook Questions and answers
Slide 4: Client assets reach record high – robust net profit – highest dividend
Client assets reach record high – Vontobel delivers robust net profit – highest dividend in the history of Vontobel 13 February 2018 Key figures as of 31 December 2017 Client assets Net new money CHF 246.5 bn CHF 5.9 bn including CHF 186.6 bn (4.3 %1) of advised client assets IFRS Group net profit E
Slide 5: Significant investment in new markets, talent, technology and brand
Significant investment in new markets, talent, technology and brand in order to drive future growth 13 February 2018 Clients continue to endorse our products and services – Combined Wealth Management1 delivered strong investment performance and saw significant demand for its discretionary/advisory s
Slide 6: Overview: Full-year results 2017
Overview 13 February 2018 Highlights Full-year results 2017 Strategy update Outlook Questions and answers
Slide 7: Vontobel delivers robust 2017 result
Vontobel delivers robust 2017 result 13 February 2018 Group net profit (CHF mn) Comments – Vontobel focused its capital on its +12% own operations and sold its 4% stake in Helvetia – meaning it no longer receives a dividend from Helvetia (2016 dividend: CHF 7.0 mn 201.5 194.5 1.0 217.9 after tax2) 2
Slide 8: Advised client assets reach record high at CHF 187 billion
Advised client assets reach record high at CHF 187 billion 13 February 2018 Advised client assets (CHF bn, end of period) Advised client assets by client domicile (end-2017) Others 187 Italy 6% 13% p.a. 9 13 6% 148 6 UK 6 10% Switzerland 117 40% 7 90 8 165 US 11% 136 110 82 12% Germany 15% Emerging
Slide 9: Shift in Combined Wealth Management asset base towards discretionary/advisory
Shift in Combined Wealth Management1 asset base towards discretionary/advisory and increased margin in 2H17 13 February 2018 Net new money (CHF bn) Development of AuM (CHF bn) Gross margin on AuM (bps) 5.3% 7.8% 3.7% 4.4% 5.3% 4.7% ∆ in % 73 73 72 31.12.2016 46.8 69 2.6 67 664 NNM WM discre- 2.6 5.6
Slide 10: Asset Management with impressive growth in net new money
Asset Management with impressive growth in net new money of 6.8%1 over last 9 months of 2017 and record result in 2H17 13 February 2018 Net new money (CHF bn) Development of AuM (CHF bn) Pre-tax profit and CIR (CHF mn; %) 17.7% 12.5% 6.9% 9.4% 5.7%2 -2.9%1 6.8%1 ∆ in % 8.2 7.9 31.12.2016 92.3 164 7.
Slide 11: Financial Products expanding successfully in Europe and Asia
Financial Products expanding successfully in Europe and Asia – increased turnover of own products and on deritrade® MIP 13 February 2018 Turnover in listed and non-listed Vontobel products1 (CHF bn) Notional volume issued on deritrade® MIP (CHF bn) Listed products in Europe and Asia (2017) MARKET SH
Slide 12: Corporate Center impacted by low interest rates
Corporate Center impacted by low interest rates and focusing of capital on operating business – operating expense stable 13 February 2018 Treasury revenues Mergers & acquisitions Operating expense – Low interest rates continue to – Vontobel acquired Vescore in the – Operating expense in Corporate ne
Slide 13: Group net profit of CHF 209.0 million while investing in growth
Vontobel delivered Group net profit of CHF 209.0 million while making further investments in future growth 13 February 2018 Breakdown of 2017 net profit Comparison with net profit in Comments (CHF mn) previous year (CHF mn) +12% 1,060.3 217.9 8.9 – Excluding proceeds from sale of 194.5 Helvetia stak
Slide 14: Operating income up 9% and Group net profit up 12% adjusted
Vontobel increases operating income by 9% and Group net profit by 12% on an adjusted basis despite investment in growth 13 February 2018 Development of key figures Comments − Operating income grew by 9%, 2016 2017 ∆ adjusted for sale of Helvetia stake in Operating income (CHF mn) 1081.1 1060.3 -2% 2
Slide 15: Asset Management is most important earnings driver
Asset Management is most important earnings driver – Wealth Management and Financial Products increase pre-tax profit 13 February 2018 Pre-tax profit of core activities (IFRS, CHF mn) Combined Wealth Management1 Asset Management Financial Products 0% 163.5 162.8 +29% +34% 89.1 83.5 69.3 62.5 2016 20
Slide 16: Capital-light business models lead to strong growth
Focus on capital-light business models leads to strong growth with little incremental risk – ample capital for acquisitions 13 February 2018 Focus on capital-light business models Regulatory capital (CHF mn; Basel III fully applied) Earnings per share Risk-weighted positions (in CHF) (in CHF mn) 1,0
Slide 17: Overview: Strategy update
Overview 13 February 2018 Highlights Full-year results 2017 Strategy update Outlook Questions and answers
Slide 18: Vontobel focused on solidly growing markets
Vontobel is focused on solidly growing markets and is delivering value through a distinctive first-class offering 13 February 2018 Wealth management Active asset management Financial products – Strong growth of HNWI population – Industry AuM is growing by an – Long-term increase in demand for and HN
Slide 19: Vontobel invests to capture growth opportunities
Vontobel invests to capture growth opportunities and runs a diversified portfolio of growth options 13 February 2018 Vontobel continuously ... has a proven track-record ... and creates invests in its business … in delivering on ambitions … long-term value Market share Combined New markets Wealth Man
Slide 20: Asset Management runs a diversified global book of boutiques
Asset Management runs a well-diversified and global book of specialized boutiques focused on high-conviction investing 13 February 2018 Diversified book of business Well positioned for future growth – Business is well diversified and can distribute attractive Total advised client assets: CHF 121.3 b
Slide 21: Asset Management positioned for rising emerging markets demand
Asset Management is well positioned to meet rising demand for emerging markets solutions 13 February 2018 Emerging markets are gaining in importance Vontobel has long experience of and investors are returning investing in emerging markets Distribution of world GDP – Vontobel has been investing in em
Slide 22: Combined Wealth Management boosted pre-tax profit
Combined Wealth Management1 boosted pre-tax profit by growing asset base and stabilizing gross margin 13 February 2018 Advised client assets (in CHF bn) Gross margin (in bps) Pre-tax profit (in CHF mn) +11% p.a. -3 bps +34% -2 bps -1 bps 55.8 72 83.5 69 +3% 67 66 60.9 62.5 40.4 End 2014 End 2017 201
Slide 23: Wealth Management distinguishes itself from competitors
Wealth Management clearly distinguishes itself from its competitors and attracts top-tier talent 13 February 2018 Our need-based segmentation, 3α-Investment Philosophy® and value-based pricing set us apart Vontobel attracts top-tier talent – Vontobel attracts and retains top talent – Vontobel is a p
Slide 24: EAM business has unique market position
EAM business has unique market position and growth translates into significantly higher pre-tax profit 13 February 2018 Growth of asset base combined with stable margin translates into Vontobel has built a significantly higher pre-tax profit due to operating leverage unique market position Advised c
Slide 25: Financial Products progress to become a leading player globally
Financial Products has made significant progress to become a leading player globally 13 February 2018 Leading position in Europe Successful market entry in Asia Vontobel presence in 2011 New markets since 2012 Potential new markets → In 2018, protect strong positions in Switzerland, → In 2018, incre
Slide 26: Best-in-class ecosystem in Financial Products
Best-in-class ecosystem in Financial Products is hard to replicate and enables Vontobel to serve new client groups 13 February 2018 Financial Products developed a … that is hard to replicate ... grow existing client best-in-class ecosystem … and allows Vontobel to ... groups and to attract new ones
Slide 27: Overview: Outlook
Overview 13 February 2018 Highlights Full-year results 2017 Strategy update Outlook Questions and answers
Slide 28: Why the “why” is growing in importance – corporate purpose
Why the “why” is growing in importance – Vontobel’s answer is a strong corporate purpose 13 February 2018 Current trends are … and they need to Companies with a Vontobel has a strong fundamentally impacting adapt in order to be strong purpose corporate purpose and companies … successful outperform t
Slide 29: Targets: consistent growth of 4-6% per annum by 2020
Vontobel targets consistent growth of 4-6% per annum and further improvement in operating efficiency by 2020 13 February 2018 Growth Profitability Capital and payout Top-line growth (in %) Return on equity (in %) Total capital ratio (in %) 9.11 18.4 13.1 > 163 4-6 > 12 2017 Target 20202 2017 Target
Slide 30: Vontobel builds on investments made in 2017
Vontobel builds on investments made in 2017 and continues to capture growth opportunities 13 February 2018 A growing industry in a Profit growth despite Vontobel to capture future challenging environment significant investments growth opportunities 12% – Expansion of asset pools driven 217.9 – Combi
Slide 31: Overview: Questions and answers
Overview 13 February 2018 Highlights Full-year results 2017 Strategy update Outlook Questions and answers
Slide 32: Appendix
Appendix 32
Slide 33: Advised client assets have grown by 26% since 2015
Advised client assets have grown by 26% since 2015 – good diversification across asset classes 13 February 2018 Advised client assets (CHF bn) Advised client assets by asset class (end-2017) Combined Wealth Management Asset Management +26% 4% 186.6 10% 7% 26% 31% 155.3 42% 147.8 20% 6% 30% 6% 29% 31
Slide 34: Advised client assets have more than doubled since 2008
Advised client assets have more than doubled since 2008 – demonstrating Vontobel’s successful focus on its core capabilities 13 February 2018 Advised client assets (CHF bn, period-end) Vontobel’s business model – As a globally active financial expert with Swiss roots, Vontobel specializes in wealth
Slide 35: 94% of advised client assets stem from home and focus markets
94% of advised client assets stem from home and focus markets 13 February 2018 Advised client assets by client domicile as of end-2017 (CHF bn) EMERGING OTHER SWITZERLAND1 GERMANY ITALY UK US Total MARKETS2 MARKETS Advised client assets 75.4 21.9 10.6 18.1 20.7 27.9 12.0 186.6 Combined Wealth Onshor
Slide 36: Asset Management boutiques focus on defined investment strategies
Vontobel Asset Management boutiques focus on clearly defined investment strategies 13 February 2018 CLIENT ASSETS CLIENT ASSETS CLIENT ASSETS Equities CHF bn1 Fixed Income CHF bn1 Multi Asset Class CHF bn1 Quality Growth boutique Fixed Income boutique Multi Asset boutique High Quality Growth at 37.4
Slide 37: Strong performance culture is confirmed by the market
Strong performance culture is confirmed by the market 13 February 2018 We have received 176 awards for our investment funds and our investment expertise since 2011 176 37
Slide 38: Vontobel Asset Management’s client coverage
Vontobel Asset Management’s client coverage 13 February 2018 ICELAND CANADA MAJOR EUROPEAN MARKETS SOUTH USA KOREA CHINA JAPAN VARIOUS CARIBBEAN MIDDLE EASTERN TAIWAN ISLANDS MARKETS HONG KONG THAILAND COLOMBIA SINGAPORE PERU BRAZIL BOTSWANA AUSTRALIA CHILE SOUTH AFRICA NEW ZEALAND 38
Slide 39: Asset management offering to financial institutions
Vontobel provides compelling asset management offering to financial institutions 13 February 2018 Vontobel’s offering for Partners across the globe rely on Vontobel’s offering asset management partners – Distinctive offering for financial institutions focusing on core competencies such as client Lux
Slide 40: Aspire to be the leading Swiss wealth manager
To drive organic growth, we continuously aspire to be the leading Swiss wealth manager and to deliver optimal client service 13 February 2018 We aspire to be the leading Swiss wealth manager Attracting and retaining top talent Differentiated The best … delivered … supported by … with a value- and ta
Slide 41: Innovation through technology – multi-channel offering
Vontobel drives innovation through technology – our clients benefit from seamless access across multiple platforms 13 February 2018 Vontobel’s multi-channel offering Client Tablet Smartphone Desktop Markets Ideas/research Trading Watch list Secure instant messaging Portfolio views and analysis 41
Slide 42: Offering based on client-specific needs
Vontobel sets itself apart by providing an offering based on client-specific needs – an important driver of organic growth 13 February 2018 Clients are traditionally segmented by the … but Vontobel’s offering is industry according to their wealth based on client-specific needs Ultra-high-net-worth i
Slide 43: Clients and third parties reward Wealth Management offering
Clients and third parties reward our first-class Wealth Management offering 13 February 2018 Our clients recommend us Vontobel gains external recognition – Vontobel has the highest Net Promoter Score1 among Swiss competitors – a strong sign of client satisfaction – More than half of our clients are
Slide 44: Swiss market is fragmented and undergoing structural change
Swiss market is fragmented and undergoing structural change – creating opportunities for Vontobel to accelerate growth 13 February 2018 Private banks in Switzerland Comments ~ –30% – Number of Swiss private banks has 158 decreased by around 30% since 147 2011 138 131 – Structural change is expected
Slide 45: Financial Products competitive edge
Leading offering and technology, well-balanced business model and cost leadership give Financial Products a competitive edge 13 February 2018 Leading offering / technology Well-balanced business model Cost leadership Vontobel products issued – Vontobel sells volatility through leverage – Industry-le
Slide 46: Financial Products provides bespoke structured products
Vontobel Financial Products provides bespoke structured products through a well-balanced business model 13 February 2018 Capital markets Vontobel’s derivatives factory Distribution advisory Investment content Risk – Exchanges – OTC – Interbank markets Asset classes open – Fixed income deritrade© – C
Slide 47: deritrade MIP – decision-making tool for structured products
deritrade® MIP – the world’s1st decision-making tool for designing and buying structured products using smart and crowd data 13 February 2018 Innovation cycles Benefits of Vontobel’s multi-issuer platform – deritrade® MIP provides full customization capabilities at best prices – bringing the Interne
Slide 48: Financial Products market share across all markets (1/2)
Financial Products with stable or growing market share across all markets (1/2) 13 February 2018 Switzerland (CHF bn) 8 60% Rank #11 6 45% MARKET SHARE 4 30% Turnover 27.0%1 2 15% # of trades 44.1%1 0 0% Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dez 07 08 08 09
Slide 49: Financial Products market share across all markets (2/2)
Financial Products with stable or growing market share across all markets (2/2) 13 February 2018 Italy2 (EUR bn) 8 20% Rank #41 6 15% MARKET SHARE 4 10% Turnover 6.9%1 2 5% 0 0% # of trades 7.7%1 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dez 07 08 08 09 09 10 10
Slide 50: Distribution strategy for Financial Products
Distribution strategy for Financial Products geared towards high-growth areas 13 February 2018 Derivatives market Secondary market Exchanges1 Primary market Issuance Fixing/listing Private placements Expiry Exchange-traded volume (2017) deritrade® MIP (2017) Switzerland Germany2 Nordics Italy France
Slide 51: deritrade Multi Issuer Platform
deritrade® Multi Issuer Platform offers structured products from multiple issuers within seconds for a given product specification 13 February 2018 51
Slide 52: High quality of bond portfolio maintained
High quality of bond portfolio maintained 13 February 2018 Counterparty exposure by rating (end-2017) Counterparty exposure by sector (end-2017) 7% 1% 19% 24% 31% 46% 27% 45% AAA A Other Government/public sector bodies AA BBB Financials Corporates (non-financials) Note: Total issuer risk from debt i
Slide 53: Financial Products accounts for less than one-third of capital usage
Financial Products accounts for less than one-third of capital usage 13 February 2018 Capital consumption as of end-2017 (CHF mn) 272.6 766.9 208.6 290.5 191.9 36.7 198.9 92.2 146.0 93.8 149.0 5.3 40.3 205.8 0.0 56.8 63.7 59.4 31.7 124.6 0.0 23.5 10.0 -0.6 Total Combined Wealth Asset Management Fina
Slide 54: Disciplined M&A approach to complement organic growth
Vontobel continues to pursue a disciplined M&A approach to complement organic growth 13 February 2018 Vontobel’s M&A approach – Active participation in industry consolidation to accelerate profitable growth – Current capital structure provides substantial resources for both bolt-on and larger acquis
Slide 55: Amortization of intangibles from former acquisitions is declining
Amortization of intangibles from former acquisitions is declining and will lead to an improvement in the CIR of around 1pp 13 February 2018 Amortization of intangibles from former acquisitions (CHF mn) Comments CIR -1 pp – Amortization of intangibles includes these acquisitions: 12.5 11.9 – Commerzb
Slide 56: Attractive value proposition for investors
Vontobel represents an attractive value proposition for investors 13 February 2018 A growth case … … with strong financial discipline … … and potential for M&A – Wealth and asset management – Capital-light business model as a – Potential to boost profitability industry is growing globally wealth and
Slide 57: Strategy has delivered attractive returns to shareholders
Successful implementation of Vontobel’s strategy has delivered attractive returns to shareholders for more than a decade 13 February 2018 Return on equity and dividends Comments – Attractive business with average 21.6% return on equity of 12.0% since 19.2% 2003 – clearly above Vontobel’s 18.0% cost
Slide 58: Transparency on core activities
Vontobel provides comprehensive transparency on its core activities 13 February 2018 Financial disclosure Comments Organizational set-up/ – The EAM business is similar to Wealth Management in Core activities terms of its business model, stable income streams and IFRS reporting risk profile – To prov
Slide 59: All core activities with ambitious targets for 2020
All core activities with ambitious targets for 2020 13 February 2018 Combined Wealth Management1 Asset Management Financial products NNM growth (in %) NNM growth3 (in %) Operating income 4.7 4-6 4-6 > 300 4.0 276.2 2017 Target 20201 2017 Target 2020 2017 Target 2020 Gross margin on AuM (in bps) Gros
Slide 60: Vontobel families hold more than 50% of share capital
Vontobel families hold more than 50% of share capital and are strongly committed to Vontobel 13 February 2018 Shareholder structure under new shareholder pooling agreement1 Vontobel Foundation and Pellegrinus Holding 19.6% Free float 49.3% Pooled shares total Vontrust AG 14.3% Shares in the core poo