Slide 1: Results and Strategy Update - Full Year 2021
Investments Results and Strategy Update - Full Year 2021 17 February 2022
Slide 2: Agenda
Agenda Speakers Content 2021 Review 2021 Financial results Peter Sanderson Group CEO Strategic priorities and outlook Q&A Appendix Richard McNamara Group CFO 2
Slide 3: 2021 Review
2021 Review Peter Sanderson, Group CEO
Slide 4: 2021 Business highlights
2021 Business highlights Strong strategic progress Strong investment All historic regulatory Continuing to attract and Asset diversification is performance matters now resolved retain talent working 68% of AuM outperforming GAM’s governance ranked Stable and high calibre Net inflows into equities be
Slide 5: FY 2021 Financial results
FY 2021 Financial results Successfully pivoting, however financial performance lagging strategic progress • Successive quarters of equity inflows offset by outflows in fixed income Investment • AuM of CHF 31.9bn compared to CHF 35.9bn as at 31 December 2020 Management • Net client outflows of CHF 4.
Slide 6: FY 2024 Financial targets
FY 2024 Financial targets Updating our FY 2024 financial targets to reflect current AuM levels Embedded business performance At least 1. Market conditions and returns benign, based on long term averages CHF 50 m Underlying pre-tax profit 2. Net client inflows driving AuM and revenue growth − Net new
Slide 7: Investment Management – Net flow drivers
Investment Management – Net flow drivers Building a more diversified book while still exposed to concentration in fixed income Inv estment Management, funds only (in CHF bn) 576 327 318 223 208 159 155 114 GAM Star Cat Bond GAM Star Disruptive GAM Sustainable GAM Star Continental GAM Luxury Brands G
Slide 8: Investment performance
Investment performance Strong recovery in 3-year and good 5-year investment performance % of fund AuM outperforming the benchmark % of fund AuM outperforming Morningstar peer group 70% 68% 70% 60% 61% 62% 56% 23% 31.12.2020 31.12.2021 31.12.2020 31.12.2021 3 years 5 years Significant im provement in
Slide 9: FY 2021 Financial Results
iii! FY 2021 te Financial Results Richard McNamara, Group CFO
Slide 10: FY 2021 Financial summary
FY 2021 Financial summary Expense reductions offsetting income decline (in CHF m, except w here indicated) 2021 2020 Change1 Net management fees and commissions 208.0 230.4 (10%) of which Investment Management 175.6 196.5 (11%) of which Fund Management Services 32.4 33.9 (4%) Net underlying performa
Slide 11: Management fee margin
Management fee margin 1 Fee margins stable Investm ent Management (in bps) Fund Managem ent Services 2 (in bps) 6.3 62.1 59.1 54.2 5.4 51.8 51.3 4.1 4.0 3.9 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • Investment management full year margin at 51.3bps • Fund Management Services full year marg
Slide 12: Performance fees
Performance fees Disruptive growth fund and core macro driving significant performance fees Performance fee eligible assets (in CHF bn) Underlying performance fees by capability (in CHF m) 19.3 3.1 3.2 2.8 30.06.2021 31.12.2021 FY 2020 FY 2021 Unconstrained Global macro / Non-directional Other f ixe
Slide 13: Expenses
Expenses Fixed personnel and general expenses reduced by CHF 15.5 million (in CHF m, except w here indicated) Change Change 2021 2020 in CHF in % Fixed personnel expenses1 104.8 118.3 (13.5) (11%) Driven by headcount reduction. 2 Variable personnel expenses 38.3 32.2 6.1 19% Driven by increased perf
Slide 14: Efficiency programme
Efficiency programme ~CHF 140 million of total cost savings and reduction of 320 FTEs since 2018 Total expenses FY 2018 – FY 2021 (in CHFm) 925 1’000.00 817 900.00 701 800.00 605 700.00 600.00 500.00 373.5 315.7 400.00 244.1 234.5 300.00 287.8 200.00 Variable expenses 258.6 211.9 196.2 100.00 Fixed
Slide 15: IFRS net loss
IFRS net loss IFRS net loss impacted by the FCA penalty and deferred tax asset adjustments (in CHF m, except w here indicated) 2021 2020 Underlying (loss) before taxes (9.6) (14.9) 1 Acquisition-related items 8.1 19.8 Non-core items2 (13.7) (402.4) IFRS (loss) before taxes (15.2) (397.5) -15.2 Incom
Slide 16: Capital management
Capital management Cash and capital robust Cash and adjusted tangible equity1 (in CHF m) Cash and capital • No external debt • Cash slightly dow n compared to H1 2021 – mainly due to timing of payables and receivables and investment in the "One GAM" platform 316 • Adjusted tangible equity slightly d
Slide 17: Strategic Priorities and Outlook
Strategic Priorities and Outlook Peter Sanderson, Group CEO
Slide 18: Delivering growth through our three businesses
Delivering growth through our three businesses Three businesses supported by a global footprint and a local network Investment Management Wealth Management Fund Management Services High-single digit AuM growth through Low-single digit AuM growth through Mid-single digit AuM growth through high-convi
Slide 19: Strategic priorities 2022
Strategic priorities 2022 Pivot to growth Maintain high levels of client Drive AuM growth through Continue to drive efficiency Continue to attract, retain and engagement access to global client markets gains by leveraging one develop a diverse, talented and local relationships operational platform t
Slide 20: Outlook
Outlook • Global inflation expected to increase with central banks likely shifting tightened monetary policy and rate hikes Outlook 2022 • Pressure on returns supporting a shift towards high-conviction thematic and sustainable strategies, thus client demand expected to increase FY 20241 • Underlying
Slide 21: Q&A
Slide 22: Appendix
Appendix
Slide 23: Assets under management
Assets under management Inv estment Management (in CHF bn) (4.4) 1 (1.1) 1.4 0.1 35.9 31.9 31.12.2020 Net flows Funds Market performance FX impact 31.12.2021 in liquidation Fund Management Services (in CHF bn) 2 (20.5) 86.1 3.9 (1.5) 68.0 31.12.2020 Net flows Market performance FX impact 31.12.2021
Slide 24: AuM development by capability
AuM development by capability Inv estment Management (in CHF bn) AuM Funds in AuM Funds in AuM Capability Net flows Market FX Net flows Market FX 31.12.20 liquidation 30.06.21 liquidation 31.12.21 Fixed income 17.1 (1.2) (0.8) 0.6 15.6 (1.1) - - (0.4) 14.1 - Multi asset 7.5 0.1 0.3 0.1 7.6 (0.1) - 0
Slide 25: Investment performance
Investment performance 1 % of AuM outperforming benchmark 3-year 5-year Capability 31.12.2021 30.09.2021 30.06.2021 31.03.2021 31.12.2020 31.12.2021 30.09.2021 30.06.2021 31.03.2021 31.12.2020 Fixed income 56% 28% 19% 31% 6% 46% 78% 75% 98% 67% Equity 91% 70% 67% 63% 61% 83% 77% 74% 87% 85% Systemat
Slide 26: IM fee margin by capability
IM fee margin by capability1 Management fee margin by capability1 (in bps) Fixed Income Equity Systematic 67 68 64 58 58 61 50 46 30 FY 2020 H1 2021 FY 2021 FY 2020 H1 2021 FY 2021 FY 2020 H1 2021 FY 2021 Absolute Return Alternatives Multi asset 94 86 75 59 48 43 20 21 23 FY 2020 H1 2021 FY 2021 FY
Slide 27: AuM and net flows by capability
AuM and net flows by capability Inv estment Management AuM by capability (in CHF bn) 31.12.17 30.06.18 31.12.18 30.06.19 31.12.19 30.06.20 31.12.20 30.06.21 31.12.21 Fixed income 37.1 38.6 29.2 27.1 25.8 17.6 17.1 15.6 14.1 Equity 12.6 12.5 8.7 7.1 7.2 5.8 6.9 7.9 8.0 Multi asset 9.5 9.3 7.7 7.8 7.8
Slide 28: AuM by product type
AuM by product type Inv estment Management AuM by product type (in CHF bn) 31.12.17 30.06.18 31.12.18 30.06.19 31.12.19 30.06.20 31.12.20 30.06.21 31.12.21 Luxembourg SICAVs 23.5 22.8 14.6 14.1 12.4 8.3 7.4 6.6 5.0 Segregated accounts 15.7 15.2 10.1 9.1 8.1 6.3 6.3 6.1 5.4 Ireland UCITS 26.1 26.7 16
Slide 29: AuM and net flows by client segment
AuM and net flows by client segment Inv estment Management AuM by client segment (in CHF bn) 31.12.17 30.06.18 31.12.18 30.06.19 31.12.19 30.06.20 31.12.20 30.06.21 31.12.21 Intermediaries 40.6 41.8 27.4 23.9 23.0 16.1 18.3 17.8 17.1 Institutional clients 38.5 37.6 24.7 24.5 21.8 16.5 14.7 14.0 11.9
Slide 30: Fund Management Services AuM breakdowns
Fund Management Services AuM breakdowns By fund domicile (in CHF bn, except where indicated) 30.06.17 31.12.17 30.06.18 31.12.18 30.06.19 31.12.19 30.06.20 31.12.20 30.06.21 31.12.21 Switzerland 33.1 33.6 34.2 33.3 36.4 34.5 33.7 34.9 36.6 14.4 Rest of Europe 26.0 40.7 45.2 42.8 47.6 49.8 50.2 51.2
Slide 31: Key figures
Key figures Inv estment Management (in CHF, except where indicated) FY 2017 H1 2018 H2 2018 FY 2018 H1 2019 H2 2019 FY 2019 H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 Net management fees and commissions (m) 463.8 261.6 192.0 453.6 148.3 136.6 284.9 104.6 91.9 196.5 90.6 85.1 175.6 Net performan
Slide 32: Performance fee eligible assets and income
Performance fee eligible assets and income Performance fee eligible assets¹ (in CHF bn) 31.12.17 30.06.18 31.12.18 30.06.19 31.12.19 30.06.20 31.12.20 31.06.21 31.12.21 Unconstrained fixed income 6.6 6.2 - - - - - - - Global macro/managed futures 1.6 1.1 0.6 0.4 0.3 0.1 0.1 0.1 0.1 Non-directional e
Slide 33: Performance fee eligible assets analysis
Performance fee eligible assets analysis Other fixed Global macro / Non-directional Systematic income Other1 Total managed futures equity strategies Performance fee eligible AuM (CHF bn) 0.1 0.2 0.5 1.4 1.0 3.2 No. of PF eligible funds/mandates 1 5 6 5 7 24 Performance fees FY 2021 (CHF m) 0.6 2.7 3
Slide 34: Key performance fee eligible strategies
Key performance fee eligible strategies As at 31.12.2021 AuM % (below)/ Crystallisation Fund Performance fee rate Last HWM date (CHF bn) above HWM date Funds 0.1 2% Various 8 / 15% 30.06.2021 GAM Star Disruptive Growth 0.7 3% Various 10% 30.06.2021 Other Managed accounts 0.2 NA 31.12 7 / 10% 31.12.2
Slide 35: General expenses
General expenses (in CHF m) 2021 2020 Change Occupancy 6.2 5.6 11% Technology and communication 16.3 15.2 7% Data and research 20.0 20.6 (3%) Professional and consulting services 7.8 8.3 (6%) Marketing and travel 5.8 7.0 (17%) Administration 5.2 5.5 (5%) Other general expenses 11.9 12.8 (7%) General
Slide 36: Operating margin and compensation ratio
Operating margin and compensation ratio (in CHF m) 2017 2018 2019 2020 2021 Net fee and commission income 547.7 499.9 329.9 233.2 227.3 Net other (expenses) / income 2.2 0.3 (3.7) (4.0) (2.4) Income 549.9 500.2 326.2 229.2 224.9 - Personnel expenses 264.6 239.6 197.0 150.5 143.1 General expenses 106
Slide 37: Basic and diluted underlying EPS
Basic and diluted underlying EPS (in million shares, except where indicated) 2017 2018 2019 2020 2021 Weighted average number of shares in issue 160.0 159.7 159.7 159.7 159.7 Weighted average number of treasury shares held 3.0 4.3 4.2 3.1 3.6 Weighted average number of shares outstanding for basic E
Slide 38: Currency split – revenues, expenses and AuM
Currency split – revenues, expenses and AuM Group income1 Group expenses2 Investment management AuM FY 2021 FY 2021 as at 31.12.2021 9% 3% 11% 13% 15% 36% 37% 30% 13% 19% 7% 9% 32% 41% 25% USD EUR GBP CHF Other Source: GAM. 38 1 Percentage splits are estimated based upon the currency exposure of the
Slide 39: Group balance sheet
Group balance sheet 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 (in CHF m) restated restated Cash and cash equivalents 374 328 316 271 235 Seed capital investments 84 68 46 23 16 Other assets 271 207 260 230 199 Goodwill and other intangible assets 1’852 725 713 296 305 Assets 2’581 1’328 1’335 820
Slide 40: Net cash
Net cash (in CHF m) (7.5) (4.9) (6.7) 7.6 (2.1) (22.5) 270.9 234.8 Net cash 2021 underlying Acquisition-related Share repurchases Net seed capital FX impact Change in net Net cash 31.12.2020 net loss deferred for share-based sales assets and 31.12.2021 consideration schemes liabilities payment Sourc
Slide 41: Adjusted tangible equity
Adjusted tangible equity1 (in CHF m) 23.3 32.2 4.6 174.2 18.0 0.8 188.7 147.4 Adjusted IFRS Investment in FX impact Remeasurement Other Adjusted tangible net loss developed of pension impacts tangible equity HY 2021 software liability equity 31.12.2020 31.12.2021 Source: GAM. 41 Abbrev iation: IMCCs
Slide 42: Corporate calendar and contacts
Corporate calendar and contacts Forthcoming events 20 April 2022 Q1 2022 Interim management statement 28 April 2022 Annual General Meeting 2022 3 August 2022 Half-year results 2022 20 October 2022 Q3 2022 Interim management statement Group Communications and Investor Relations Charles Naylor Jessica
Slide 43: Cautionary statement on forward-looking information
Cautionary statement on forward-looking information This presentation by GAM Holding AG (‘the Company’) does not constitute an invitation or offer to acquire, purchase or subscribe for securities. This presentation by the Company includes forw ard-looking statements that reflect the Company’s intent
Slide 44: www.gam.com
GAM Investments ww.gam.com