Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — H1 2016 Earnings Presentation
25 slides from Evli Plc Class B's earnings presentation, Jul 14, 2016
Slide 1: Evli Bank Plc Review of H1 2016
Evli Bank Plc Review of H1 2016 Maunu Lehtimäki, CEO Juho Mikola, CFO 14.7.2016
Slide 2: Evli in brief
Evli in brief 3 business areas WEALTH MANAGEMENT MARKETS CORPORATE FINANCE over 200 investment specialists EUR EUR 9.4 18.5 % billion client 31.4 return on equity assets under million revenue management (H1/2016) (1-6/2016 annualized) (6/2016) 1
Slide 3: Highlights of the period
Highlights of the period 1 Significant increase in earnings per share (EPS) 2 Net subscriptions to Evli’s funds 2nd largest in Finland 3 AUM development good from previous year 4 Acquisition of full share capital in EAM 5 Efficiency improvements 2
Slide 4: Evli's key figures
Evli’s key figures Revenue (EURm) Return on Equity % (ROE) 64.2 59.7 20.2% 19.9% 55.5 18.5% 48.3 15.2% 31.4 32.8 11.5% 4.3% 2012 2013 2014 2015 2016H1 2015H1 2012 2013 2014 2015 2016H1 2015H1 Revenue split, 2016 H1 Operating profit (EURm) & profit margin 13.3 Wealth Management 9.8 23% (65%) 21% Capi
Slide 5: Market development 2005-2016 H1
Market development 2005-2016 H1 Growth in fund assets in Finland, 12/2005–6/2016 (EUR billion) Growth p.a. 12/05–6/16 Short term fixed Long term fixed Other funds +7,7% income Funds income Funds 105 Cumulative net +4,0% Balanced Funds Equity Funds subscriptions 90 +2,1% +10,2% 75 +12,5% 60 +7,1% 45
Slide 6: Clientele development
Clientele development Split of Evli’s clients based on the assets under management** 2012–2016 H1 Evli has a strong presence among institutional investors 24% 21% 22% 22% 22% A majority of Evli’s assets under management are from institutional investors Evli’s clientele is focused on institutio
Slide 7: Largest owners in Evli 30.6.2016
Largest owners in Evli 30.6.2016 Shareholders A Shares B Shares Shares total % of all shares % of votes 1. Oy Prandium Ab 3 803 280 950 820 4 754 100 20,39 22,29 2. Oy Scripo Ab 3 803 280 950 820 4 754 100 20,39 22,29 3. Oy Fincorp Ab 2 319 780 580 115 2 899 895 12,44 13,59 4. Ingman Group Oy Ab 1 8
Slide 8: Products and services
EVLI Products and services
Slide 9: Development of assets in Evli funds
Development of assets in Evli funds Development of assets in Evli’s mutual funds, Division of assets in Evli’s mutual funds, 2012 –June 30, 2016 (EUR billion) June 30, 2016 5.7 Growth, p.a. Amount Fund type 5.1 +16% 0.8 4.4 0.8 +15% 4.1 0.9 0.7 Fixed Income 3.4 69% Fund 0.5 4.8 4.3 +16% 3.4 3.5 2.9
Slide 10: Performance of Evli's funds
Performance of Evli’s funds* 1 year 3 year 10 year net subscriptions, performance performance performance Morningstar- Fund fund size, m€ m€ (p.a.) (p.a.) (p.a.) rating* Fixed-income funds 3 909,3 554,5 Evli Taktinen Alfa-Korko 33,3 -63,6 1,3 % 2,7 % 0,0 % Evli Yrityslaina 262,3 -8,0 2,9 % 4,1 %
Slide 11: Evli's market share in mutual funds
Evli’s market share in mutual funds* Net Subscriptions Company Total Assets MEUR Market Share Rank Change YTD Unit holders YTD MEUR Nordea Funds Oy 37 176,28 38,2 % 1 0,5 % 1 263 301 499,39 OP-Rahastoyhtiö Oy 20 945,62 21,5 % 2 -0,7 % 644 942 -709,08 Danske Invest Rahastoyhtiö Oy 11 234,44 11,5 % 3
Slide 12: Composition of Evli's Assets under management
Composition of Evli’s Assets under management 9.4 9.4 0.4 0.4 Growth, p.a. 1.4 1.4 7.4 2012 to 2016 H1 6.9 1.0 6.0 1.1 Direct investments in Evli 3.4 3.7 16% 1.1 funds 3.1 2.8 2.2 Discretionary asset 11% 4.1 3.9 management 3.0 3.2 2.7 2012 2013 2014 2015 2016 H1 (EUR billion) Discretionary asset man
Slide 13: Brokerage revenues
12 0% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 55% 45% 44% 56% 44% 56% 55% 45% 42% 58% Non-equity broking 40% 60% Brokerage revenues 55% 45% 59% 41% equity 55% 45% 56% 44% non-equity 58% 42% 46% 54% Equity broking 52% 48% 50% 50% 46% 54% 50% 50% 51% 49% 57% 43%
Slide 14: Evli Corporate Finance – chosen references
Evli Corporate Finance – chosen references
Slide 15: Financial data
Financial data EVLI
Slide 16: Profit and loss statement
Profit and loss statement EURm 2016 H1 2015 H1 2015 2014 2013 2012 Net interest 1,0 0,5 1,4 1,0 0,5 3,1 Net commissions 27,2 28,8 57,2 53,1 49,5 43,3 Net income from securities trading and FX 3,1 3,4 5,4 5,2 5,2 1,2 Other operative income 0,0 0,1 0,2 0,4 0,4 0,7 NET REVENUE 31,4 32,8 64,2 59,7 55,5
Slide 17: Balance sheet
Balance sheet ASSETS, EURm 31.3.2016 31.3.2015 31.12.2015 LIABILITIES, EURm 31.3.2016 31.3.2015 31.12.2015 Liquid assets 315,6 165,3 128,0 Liabilities to credit institutions and central banks 22,1 6,9 5,5 Debt securities eligible for refinancing with central Liabilities to the public and public sect
Slide 18: Key ratios
Key ratios un-audited audited 2016 H1 2015 H1 2015 2014 2013 2012 Return on equity-% (ROE) 18,5 % 19,9 % 20,2 % 15,2 % 11,5 % 4,3 % Cost-income ratio 0,83 0,80 0,79 0,84 0,88 0,93 Core BIS capital adequacy, % 15,6 % 13,9 % 19,2 % 15,2 % 13,9 % 14,6 % Earnings/Share, diluted (IFRS)* 0,25 0,19 0,53 0,
Slide 19: Segment profitability
Segment profitability Net revenue Profit before allocations 20.5 7.9 Wealth Management Wealth Management 21.1 8.9 4.9 0.6 Capital Markets Capital Markets 6.9 2.0 3.0 1.2 Corporate Finance Corporate Finance 0.8 2.8 Group operations and -4.2 Group operations and 3.0 eliminations -5.2 eliminations 2.0
Slide 20: Strategic KPI figures in line with targets
Strategic KPI figures in line with targets Assets under Management (EUR billion) Recurring revenues to operational costs 100% 93% 9.4 9.4 86% 83% 0.4 0.4 79% 1.4 1.4 70% 7.4 6.9 1.0 6.0 1.1 3.4 3.7 1.1 3.1 2.8 2.2 4.1 3.9 3.0 3.2 2.7 2012 2013 2014 2015 2016 H1 2012* 2013* 2014 2015 2016H1 Evli Alex
Slide 21: Strategic KPI figures in line with targets
Strategic KPI figures in line with targets Net fee income (EURm) Return on Equity % (ROE) 57.2 20.2 % 53.1 18.5 % 49.5 15.2 % 11.5 % 27.2 4.3 % 2013 2014 2015 2016H1 2012 2013 2014 2015 2016H1 Target rate for return on Return on Equity - Net fee income (EURm) Equity -% % 20
Slide 22: Cornerstones of Evli strategy – Simply Unique
Cornerstones of Evli strategy – Simply Unique EVLI’s core strenghts and uniqueness are built around: 1) a very strong customer experience (including offering, service and culture) and 2) product excellence, based on innovative spearhead ”institutional investor quality” products, supported by 3) stro
Slide 23: Themes for 2016
Themes for 2016 • Streamlining of core investment processes • Digitalization and client experience • Alternative investment products • International sales 22
Slide 24: Outlook for 2016
Outlook for 2016 “Evli’s business performance has been strong in recent years, and interest in Evli’s services and products is expected to remain stable. In the Corporate Finance business, substantial fluctuations in annual profits are possible. The unit’s mandate base is at a healthy level. The rat
Slide 25: Contact information
Contact information Evli Bank Plc Investor contacts Aleksanterinkatu 19, 4th floor Juho Mikola, CFO P.O. Box 1081 juho.mikola@evli.com 00101 Helsinki Tel. +358 9 4766 9871 www.evli.com Sari Paronen, IR Manager sari.paronen@evli.com Tel. +358 9 4766 9515 24