Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — Q1 2018 Earnings Presentation
22 slides from Evli Plc Class B's earnings presentation, Apr 25, 2018
Slide 1: Stable Growth Continued
January-March 2018 Interim Report STABLE GROWTH CONTINUED Maunu Lehtimäki, CEO Juho Mikola, CFO April 25, 2018
Slide 2: Evli in Brief
Evli in Brief Business Segments Clients Wealth Management and Private persons Investor Clients Institutions Advisory and Corporate Clients Corporations Group Operations Creating wealth and stakeholder value People Finance 259 investment specialist EUR 11.4 billion 53% with a university degree Assets
Slide 3: Agenda
Agenda 1 Highlights 1-3/2018 2 Financial Figures 3 Strategy & Key Focus Areas 2018 4 Outlook 2018 2
Slide 4: Highlights 1-3/2018: Stable growth continued
Highlights 1-3/2018: Stable growth continued
Slide 5: The Year 2018 Started Strongly
The Year 2018 Started Strongly Improved revenue and operating profit - Net revenue grew 5% Strategic KPI - Operating profit grew 15% - Successful sales activities and new products drivers of positive profit performance Return on Equity (Target 15.0%) 34.1% (1-3/2017: 21.4%) Strategy development Recu
Slide 6: Wealth Management & Investor Clients
Wealth Management & Investor Clients Net revenue (M€) Net revenue increased 17.2% 55.4 AUM grew to a new record, EUR 11.4 billion 42.8 42.5 37.4 Growth in traditional and digital asset management Finland's 4th largest Fund Management Company. Market share 12.2 14.3 6.8%. AUM EUR 7.8 billion
Slide 7: Advisory & Corporate Clients
Advisory & Corporate Clients Net revenue (M€) Net revenue increased by 39.2% 9.9 Corporate Finance - 6.6 Advisor in 3 transactions 5.5 - 4.8 Activity on the M&A market has remained strong 2.3 Incentive systems 1.7 - Performed well, achieving a record level of revenue - 2014 2015 2016 2017 2017
Slide 8: Financial Figures: Strong Performance Driven by Increase in Recurring Revenue
Financial Figures: Strong Performance Driven by Increase in Recurring Revenue
Slide 9: Financial Development 2014-Q1/2018
Financial Development 2014-Q1/2018 Net revenue (M€) Operating profit (M€) Net profit (M€) and profit margin (%) 21.3 71.4 17.5 64.2 59.7 60.0 12.3 13.3 30.8% 11.1 29.8% 28.3% 9.7 9.8 7.7 20.7% 5.9 16.3% 18.5% 16.1 17.0 5.2 4.6 3.3 2014 2015 2016 2017 1-3 1-3 2014 2015 2016 2017 1-3 1-3 2014 2015 201
Slide 10: Key Figures 2014-Q1/2018
Key Figures 2014-Q1/2018 Net Assets Under Management Distribution of Institutional and Assets under management in (bn €) Private clients Mutual funds (€ bn.) (excl. asocciated companies) 7.7 7.8 11.2 11.4 10.6 0.6 0.6 1.7 1.7 6.5 0.5 0.8 0.8 22% 22% 25% 25% 23% 9.4 1.4 1.1 0.4 5.2 1.4 7.4 - 4.4 0.9
Slide 11: Profit and Loss Statement
Profit and Loss Statement M€ 1-3/2018 1-3/2017 Change, % 2017 2016 2015 2014 Net interest 0.1 0.3 -48% 0.9 1.6 1.4 1.0 Net commissions 16.9 14.1 20% 65.2 54.3 57.2 53.1 Net income from securities trading and FX -0.1 1.7 -105% 4.9 4.0 5.4 5.2 Other operative income 0.0 0.0 0% 0.4 0.1 0.2 0.4 NET REVE
Slide 12: Balance Sheet
Balance Sheet 31.3. 31.3. 31.12. 31.3. 31.3. 31.12. ASSETS, M€ 2018 2017 2017 LIABILITIES, M€ 2018 2017 2017 Liabilities to credit institutions 347.2 324.8 383.2 9.8 4.0 31.7 Liquid assets and central banks Debt securities eligible for refinancing Liabilities to the public and 36.2 39.2 36.3 560.6 7
Slide 13: Key Financial Figures
Key Financial Figures 1-3/2018 1-3/2017 2017 2016 2015 2014 Profitability key figures Return on equity (ROE), % 34.1 21.4 25.5 14.3 20.2 15.2 Return on assets (ROA), % 2.3 1.3 2.0 1.4 2.2 1.4 Balance sheet key figures Equity-to-assets ratio, % 6.1 4.4 7.6 8.6 11.1 10.7 Capital adequacy ratio, % 15.4
Slide 14: Strategy & Key Focus Areas 2018: Simply Unique
Strategy & Key Focus Areas 2018: Simply Unique
Slide 15: Growth Strategy
Growth Strategy Megatrends Artificial Intelligence Robotization Cyber risks Big data Digitalization Increased competition Blurring industry boundaries Empowerment of customers Globalization Consolidation Increased regulation and control Business ‘environment Societal Aging of the population transiti
Slide 16: Key Focus Areas 2018 – Domestic and International Growth
Key Focus Areas 2018 – Domestic and International Growth Increased focus on international growth with corporate bond and global equity funds - Product requirements: Long return history, good ranking (benchmark comparison), large enough size (AUM over 250 M€) - Company requirements: Administrative
Slide 17: Key Focus Areas 2018 – New Products and Services
Key Focus Areas 2018 – New Products and Services New alternative investment products - Increasing the size of current products - Launch of new real estate fund – Evli Vuokratuotto - Evaluating the possibility of launching other alternative funds New incentive program models, for example a bonus
Slide 18: Outlook 2018: The result for 2018 is estimated to be clearly positive
Outlook 2018: The result for 2018 is estimated to be clearly positive 17
Slide 19: The Result for 2018 is Estimated to be Clearly Positive
The Result for 2018 is Estimated to be Clearly Positive This view is supported by: - Demand for Evli’s products and services has been stable and AUM has grown substantially over the recent years. - The outlook for advisory services is stable, as the demand has developed favorably However: - The
Slide 20: Thank You!
THANK YOU! Upcoming events in the investor calendar: Half year report 1-6/2018 and Investor presentation: July 13, 2018 Interim report 1-9/2018 and Investor presentation: October 30, 2018 19
Slide 21: Contact information
Contact information Evli Bank Plc Aleksanterinkatu 19. 4th floor P.O. Box 1081 00101 Helsinki www.evli.com Investor contacts Juho Mikola Mikaela Herrala CFO IR and Communications Manager juho.mikola@evli.com mikaela.herrala@evli.com Tel. +358 9 4766 9871 Tel. +358 9 4766 9823 20
Slide 22: Disclaimer
Disclaimer Information set above is not intended as investment recommendation. This report is based on sources that Evli Bank Plc considers to be correct and reliable. Evli Bank Plc nor its employees give any guarantee concerning the correctness, accuracy or completeness of any information, views, o