Bellevue Group Ag · SIX:BBN
Bellevue — H1 2020 Earnings Presentation
43 slides from Bellevue's earnings presentation, Jul 30, 2020
Slide 1: Bellevue Group half-year results 2020
Bellevue Group half-year results 2020 Presentation for investors, analysts and the media Zurich, July 30, 2020
Slide 2: Disclaimer
Disclaimer This document was produced by and the opinions expressed are those of Bellevue Group AG («Bellevue») as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation
Slide 3: Agenda
Agenda Overview of H1 2020 1 André Rüegg, Group CEO H1 2020 Results 2 Michael Hutter, Group CFO Highlights & Strategy Update 3 André Rüegg, Group CEO 4 Questions & Answers Appendix 3
Slide 4: Overview of H1 2020
1 Overview of H1 2020 André Rüegg, Group CEO 4
Slide 5: Key figures H1 2020
Overview of H1 2020 Key figures H1 2020 Pleasing trends across all performance metrics Total operating Operating Client assets Net new money profit (EBITDA) 1) income CHF 10.6 bn CHF 38 mn CHF 48.6 mn CHF 17.5 mn (31.12.19: CHF 10.6 bn) (prior-year period: CHF 104 mn) (prior-year period: CHF 46.6 mn
Slide 6: COVID-19: Bellevue Group demonstrates resiliency
Overview of H1 2020 COVID-19: Bellevue Group demonstrates resiliency Our healthcare expertise in a “sweet spot” Resilient business model with Convincing healthcare investment strategies attractive positioning (absolute performance H1 2020, in base currency) Organization - robust and agile BB Adamant
Slide 7: Strengthened client asset base despite tremendous market turmoil
Overview of H1 2020 Strengthened client asset base despite tremendous market turmoil Growth in assets under management, 2015 – H1 2020 CHF million Assets under management of CHF 10.6 bn as at June 30, 2020 12'000 Assets under management higher than at year- 10'599 10'625 end 2019 after plunging in
Slide 8: Strong new money inflow in core business
Overview of H1 2020 Strong new money inflow in core business Growth of AuM in H1 2020 CHF million Strong new money inflows in core business with attractive margins Healthcare investment solutions with attractive margins very appealing to investors +513 -84 Differentiated alternative investment s
Slide 9: H1 2020 Results
2 H1 2020 Results Michael Hutter, Group CFO 9
Slide 10: Consolidated results
H1 2020 Results Consolidated results Results of continuing activities Management fees Other income Total operating Management fees up more than 5% thanks (CHF mn) (CHF mn) income (CHF mn) to increase in average asset base and new money with attractive margins Other income is mainly transaction f
Slide 11: Other, non-recurring revenue, largely driven by market developments
H1 2020 Results Other, non-recurring revenue, largely driven by market developments For the period 2017 – H1 2020 Performance fees Operating profit can be distorted by CHF 1,000 performance fees... 6'762 As in the prior-year period, no significant 6'256 performance fees were earned in H1 2020 Un
Slide 12: Breakdown of Group net profit
H1 2020 Results Breakdown of Group net profit Strong operating profitability, material impacts on bottom-line profit CHF million Substantial 15% increase in H1 2019 H1 2020 operating profit* y-o-y +15% Ordinary expense items in line with expectations -5.7 Ordinary depreciation (incl. rights of use
Slide 13: Equity capital as of June 30, 2020
H1 2020 Results Equity capital as of June 30, 2020 Solid capital structure creates room for growth and/or further distributions to shareholders CHF million Significant reduction in equity through special dividend Reduction of goodwill & intangibles, after ordinary depreciation and impairment at
Slide 14: Highlights & Strategy Update
3 Highlights & Strategy Update André Rüegg, Group CEO 14
Slide 15: Solid investment performance
Highlights & Strategy Update Solid investment performance Excellent competitiveness, client benefit, stability 74% of AuM in 1st or 2nd quartile YTD 2020 Very competitive 81% of AuM in 1st and 2nd quartile over 3 years performance of invest- 85% of AuM in 1st and 2nd quartile since inception m
Slide 16: BB Biotech – growing in a challenging market environment
Highlights & Strategy Update BB Biotech – growing in a challenging market environment Flagship product with convincing long-term performance track record 10Y performance (in CHF) Performance comparison (in CHF) Indexed in % 1000 YTD 3 years 5 years BB Biotech shares 11.4% 37.4% 62.6% 800 BB Biotech
Slide 17: Performance quality & innovation for growth
Highlights & Strategy Update Performance quality & innovation for growth Differentiated healthcare strategies with strong appeal to new assets BB Adamant Asia Pacific Healthcare BB Adamant Digital Health Equity fund investing in companies in the healthcare sector of the Equity fund investing in comp
Slide 18: Performance quality & innovation for growth
Highlights & Strategy Update Performance quality & innovation for growth Entry of BB Healthcare Trust Plc into the FTSE 250 / ESG healthcare gaining popularity BB Healthcare Trust Plc BB Adamant Sustainable Healthcare Investment trust that invests in the global healthcare sector Equity fund investin
Slide 19: Selective expansion in private equity business
Highlights & Strategy Update Selective expansion in private equity business Focus on “Healthcare” and “Entrepreneurial Investments” Private Equity Healthcare Private Equity DACH Ongoing inclusion of high-profile entrepreneurs and families in investor group On track for final closing in H2 2020
Slide 20: Outlook for H2 2020
Highlights & Strategy Update Outlook for H2 2020 Strong position enables a solid performance despite challenging environment Business model as a pure asset with a high dependency on the equity market, esp. the healthcare sector Business model shows Still no alternative to equities due to structu
Slide 21: Outlook for H2 2020
Highlights & Strategy Update Outlook for H2 2020 Long-term goals reiterated Asset-based revenues primary focus of business model 1 Recurring revenues Targeted share of recurring revenues: >90% Assets under Steady expansion of business base targeted, but depends on the market 2 management (AuM)
Slide 22: Summary
Highlights & Strategy Update Summary Bellevue weathered the storm as a pure-play asset manager with a clear position Announced sale of Bank am Bellevue to Quintet Private Bank successfully closed in Q2 2020 Successful despite the lockdown transformation to a Bellevue Group a pure play asset mana
Slide 23: Questions & Answers
4 Questions & Answers 23
Slide 24: Appendix
# Appendix 24
Slide 25: Additional details of H1 2020 results
# Additional details of H1 2020 results 25
Slide 26: Consolidated Financial Statements
H1 2020 Results Consolidated Financial Statements Consolidated net income significantly reduced by special effects CHF 1’000 1.1.–30.06.2020 1.1.–30.06.2019 Change Operating Income 48'639 46'554 2'085 4% Personnel expenses -25'282 -24'471 -811 3% Other operating expenses -5'836 -6'791 955 -14% Opera
Slide 27: Consolidated Balance Sheet
H1 2020 Results Consolidated Balance Sheet Simplification of the balance sheet structure through focus on asset management CHF 1’000 30.06.2020 31.12.2019 Change Cash and cash equivalents 54'583 87'486 -32'903 Trade and other receivables 13'187 19'021 -5'834 Financial investments 48'281 47'386 895 G
Slide 28: Consolidated Financial Statements
H1 2020 Results Consolidated Financial Statements Results from discontinued operations (Bank am Bellevue) CHF 1’000 Operating income 2'061 7'379 -5'318 -72% thereof dividend income (SIX Group AG) 0 4'756 -4'756 -100% Operating expenses -3'514 -5'881 2'367 -40% Valuation adjustments and provisions 75
Slide 29: Business profile & strategy
# Business profile & strategy 29
Slide 30: Bellevue Group a “pure play” asset manager
Business profile & strategy Bellevue Group a “pure play” asset manager Our business model as “House of Ideas” α ______________ ______________ ______________ Generates Convinces with Creates attractive outperformance for investment expertise and continuous our investors and innovative return for pr
Slide 31: Bellevue Group a “pure play” asset manager
Business profile & strategy Bellevue Group a “pure play” asset manager Company profile and strategy Client assets Business model = simple & clear Philosophy = build value CHF 10.6 bn Pure play asset manager Primacy given to investment performance Top line Independent, entrepreneurial “multi-bo
Slide 32: Attractive offering with clearly differentiated investment expertise
Business profile & strategy Attractive offering with clearly differentiated investment expertise Good balance between “specialty” and “diversification” - for investors and shareholders! Specialized healthcare strategies Alternative investment strategies Traditional investment strategies (directional
Slide 33: Bellevue Group a “pure play” asset manager
Business profile & strategy Bellevue Group a “pure play” asset manager Consistent organization – “Multi-boutique” with 3 centers of excellence Established The Board of President: Veit de Maddalena Directors Vice president: Daniel Sigg 1993 Katrin Wehr-Seiter Urs Schenker Credo “We eat our own cookin
Slide 34: International footprint
Business profile & strategy International footprint Ongoing development of international business reach with a strong corporate culture “We eat our own cooking” Portfolio managers and key employees have a personal stake in the performance of our 5 London investment vehicles Our corporate culture
Slide 35: Client and growth momentum
Business profile & strategy Client and growth momentum Ongoing expansion of client network and development of new markets Strong growth in “core markets” across all segments > 10% AuM Switzerland, Germany, UK UK Cont. Active through local subsidiaries USA EU > 50% AuM Good growth momentum in str
Slide 36: Business model and positioning enable more growth
Business profile & strategy Business model and positioning enable more growth Our growth drivers Growth drivers Market performance New money growth Acquisitions Structural growth themes with High level of attractiveness and Proven experience and record solid fundamentals innovation across th
Slide 37: Bellevue - firmly committed to ESG investing
Business profile & strategy Bellevue - firmly committed to ESG investing Sustainable and responsible investing with and in Bellevue Corporate values «Bellevue Group commits to sustainable, responsible and values-driven business practices.»* Corporate Level Investment Portfolio Level ESG Policy BB Gr
Slide 38: Bellevue - firmly committed to ESG investing
Business profile & strategy Bellevue - firmly committed to ESG investing Major ESG investment milestones H2 2017 H1 2018 June 2018 September 2018 July 2019 Strategic Due diligence performed Launch of BB Adamant BB Adamant Sustainable Signatory of the decision to regarding collaboration Sustainable H
Slide 39: Business Profile & Strategy
Business profile & strategy Business Profile & Strategy Structure of the shareholder base as of June 30, 2020 Non-registered Strong commitment of core shareholders public shareholders Reduction of share held by management/staff after (n/a) sale of Bank am Bellevue (31.12.2019: 13.3%) Core 12.8%
Slide 40: Bellevue Group share price (BBN SW)
Business profile & strategy Bellevue Group share price (BBN SW) Pleasing performance compared to relevant indexes and other asset managers Performance in CHF (5 years) Market capitalization as of 30.06.2020 Rebased in % 300 CHF 296 mn Bellevue Group AG Polar Capital Holdings PLC Proposed dividend fo
Slide 41: Milestones in the Group's history
Business profile & strategy Milestones in the Group's history Headline events since the Group’s establishment in 1993 1993 1995 1997 2006 2009 2014 Bellevue Group IPO BB Medtech AG Launch of Launch of first Bellevue SICAV (Lux) Acquisition of Adamant established first Ventures investment fund founde
Slide 42: Why turn to Bellevue Group?
Business profile & strategy Why turn to Bellevue Group? Highlights Bellevue Group Independent, efficient, entrepreneurial management style ever since it was established in 1993 “Pure” asset manager with “Multi-boutique” with unique range of investment competencies and good balance between a clea
Slide 43: Corporate Events & Contact
Appendix Corporate Events & Contact Corporate Events March 2, 2021 Publication annual report 2020 March 23, 2021 Annual General Meeting 2021 Investor Relations Bellevue Group André Rüegg Michael Hutter Phone +41 44 267 67 00 CEO Bellevue Group CFO Bellevue Group Fax +41 44 267 67 01 Phone +41 44 267