VZ Holding AG · SIX:VZN

VZ — FY2020 Earnings Presentation

27 slides from VZ's earnings presentation, Mar 5, 2021

  1. Slide 1: Results and outlook 2020

    VZ Group VZ Holding Ltd Innere Güterstrasse 2 6300 Zug 2020 Results and outlook Telephone +41 58 411 80 00 www.vzch.com www.vzfinanzportal.com Appendix: company overview Zurich, 5 March 2021

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements This publication originates from VZ Holding Ltd and/or its affiliated companies (hereinafter called «VZ»). This publication and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an off

  3. Slide 3: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 2

  4. Slide 4: Summary 2020

    Summary 2020 Business development Financials • Robust business model withstands pandemic • Top line: +8.9% to CHF 328.7 million − Consulting business only affected in 2nd and 3rd quarter − AuM-related revenues negatively impacted by the • Operating expenses: +9.0% to CHF 173.6 million markets in 1H2

  5. Slide 5: Revenues: continued path of growth

    Revenues: continued path of growth in CHF million +8.9% +6.2% 328.7 +9.2% 301.7 25.6 +10.3% 284.2 Total revenues +8.9% yoy 25.1 +4.2% 260.2 23.4 62.4 235.9 22.2 • Consulting fees1 +2.0% yoy 226.4 57.5 60.9 11.2 19.3 • Banking income from interest business, 18.5 55.5 8.7 24.2 6.5 21.9 commissions and

  6. Slide 6: Banking income: TX/trading-revenues under pressure

    Banking income: TX/trading-revenues under pressure in CHF million 60.9 62.4 60.2 56.8 57.5 5.1 55.5 5.2 5.1 7.9 14.9 6.7 • Interest business: Increased SNB exemption threshold leads to 20.8 18.5 28.6 higher net interest result. 17.0 24.2 21.3 • Trading result: Random development driven by market vol

  7. Slide 7: Net profit: Margin on higher level

    Net profit: Margin on higher level in CHF million +14.9% +4.2% 117.5 +13.1% • Operating margin (EBIT) at 41.7% 102.3 (2019: 41.4%, long-term target: 42%) +3.2% 98.2 –0.2% − Revenues +8.9% 84.3 84.1 86.8 − Operating expenses +9.0% − EBIT +9.8% • Corporate tax reform decreased tax ratio to 14.0% (2019

  8. Slide 8: Financial Consulting: NNM within target corridor

    Financial Consulting: NNM within target corridor Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF million in CHF million 24.5 25.0 3’206 185 22.8 172 21.7 2’566 2’708 160 148 18.8 2’312 136 1’566 13.1 13.7 2’016 11.2 12.4 1’263 1’403 9.8 1’211 1’011 1

  9. Slide 9: Wealth Management: AuM +13.9%

    Wealth Management: AuM +13.9% in CHF million 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 yoy AuM total 18’415 21’775 23’056 27’627 31’459 +13.9% • PM mandates 11’116 13’136 13’641 16’715 19’061 +14.0% Share of total AuM 60.4% 60.3% 59.2% 60.5% 60.6% • Others1 7’299 8’639 9’415 10’912 12’398 +13.6%

  10. Slide 10: Platform usage among WM clients

    Platform usage among WM clients CH clients only 1 platform per client 3+ platforms per client Share of WM clients who use 1 platform only, Share of WM clients who use 3+ platforms, in % of WM clients in % of WM clients Long term target: 33% 67.6% 63.9% 60.8% 58.3% 55.6% 19.7% 17.5% 15.0% 12.1% 9.6%

  11. Slide 11: Finanzportal Usage: Overview 2020

    Finanzportal Usage: Overview 2020 Weekly active users User satisfaction User activities Net Promoter Score (NPS)1: 39.2 # of users over 6 months 16'000 Active users / 35'440 view only 28'938 15'000 22'994 46.0% 3rd pillar 14'000 17'529 47.2% Insurance 14'901 13'000 policies 9'551 12'000 Real estate

  12. Slide 12: Branch offices

    Branch offices Switzerland Germany #: 32 #: 4 branch office satellite new branch office in 2021 © VZ Holding Ltd 11

  13. Slide 13: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 12

  14. Slide 14: Income statements (1)

    Income statements (1) in CHF million 2017 2018 2019 2020 yoy Consulting fees 21.7 22.8 24.5 25.0 +2.0% Management fees: on AuM 159.4 173.0 188.5 205.3 +8.9% other 18.9 20.4 21.9 24.2 +10.5% Banking income1 55.5 60.9 57.5 62.4 +8.5% Net earned premiums 4.2 6.5 8.7 11.2 +28.7% Other operating revenues

  15. Slide 15: Income statements (2)

    Income statements (2) in CHF million 2017 2018 2019 2020 yoy EBITDA 111.0 127.2 142.4 155.1 +8.9% 1 Depreciation and amortisation 8.4 10.4 17.6 18.1 +2.8% EBIT 102.6 116.8 124.8 137.0 +9.8% Net finance income 0.0 –0.1 –0.5 –0.4 n.m. Profit before income tax 102.6 116.7 124.3 136.6 +9.9% 2 Income tax

  16. Slide 16: Personnel expenses

    Personnel expenses in CHF million 180 39.7% 40.0% 39.8% 39.7% 39.2% 38.3% 41.000 160 36.000 140 128.9 • +7.6% yoy 119.8 31.000 120 113.1 • Personnel development 104.0 26.000 100 86.8 93.7 31.12.18 31.12.19 31.12.20 80 21.000 FTE1 897.5 944.8 1’035.7 60 16.000 40 11.000 • 1H20: +40.3 FTE 2H20: +50.6

  17. Slide 17: Other operating expenses

    Other operating expenses in CHF million 14.6% 14.2% 16.3% 14.1% 11.6% 11.9% 45 42.4 40.1 39.1 40 • Other operating expenses +11.4% yoy 8.7 33.4 35.1 3.6 − Office space +9.1% yoy (adj. for IFRS 16: +7.5%) 35 33.0 8.8 3.3 9.3 − Marketing expenses –2.1% yoy 30 7.6 8.2 8.1 − General and administrative e

  18. Slide 18: EBIT and margin

    EBIT and margin in CHF million 180 44.5% 46.0 42.6% 41.7% 41.1% 41.4% 160 39.4% 41.0 137.0 140 36.0 124.8 120 116.8 • EBIT +9.8% yoy 31.0 100.8 100.4 102.6 100 26.0 • EBIT long-term margin target: 42% 80 21.0 • No significant leverage expected going forward 60 16.0 40 11.0 20 6.0 0 1.0 2015 2016 201

  19. Slide 19: Balance sheets

    Balance sheets in CHF million 31.12.19 31.12.20 Cash & cash equivalents 1’242.5 1’630.2 • Balance sheet total on the reporting date is coincidental; it does not fully Short-term investments 207.5 116.4 reflect the underlying business Swiss prime residential mortgages 1’917.4 2’371.8 development. CHF

  20. Slide 20: Equity and payout ratios

    Equity and payout ratios Payout ratios 2018 2019 2020 Equity ratios 31.12.18 31.12.19 31.12.20 in CHF million Net profit 98.2 102.3 117.5 Total equity 512.3 549.8 616.7 in CHF million Retained earnings 59.4 62.2 69.2 Dividend total 38.8 40.1 48.3 1,2 Equity ratio3 16.6% 13.6% 12.4% 4 Dividend per sh

  21. Slide 21: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 20

  22. Slide 22: Outlook

    Outlook Business development • Continuous work on increasing new client inflow, consulting capacity, client conversion and platform usage • Further develop digital interface VZ Finanzportal with additional features, including professional e-trading desktop • Germany: push marketing efforts to increa

  23. Slide 23: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 22

  24. Slide 24: What does VZ do?

    What does VZ do? Target clients… … seek expert advice… … and solid implementation • Retirement planning (employees)/ 1 Portfolio management succession planning (entrepreneurs) − Discretionary mandates 50+ − Advisory mandates • Estate planning • Investment advice 2 Banking services • Homeowners − Cus

  25. Slide 25: VZ Finanzportal

    VZ Finanzportal © VZ Holding Ltd 24

  26. Slide 26: Strong brand recognition

    Strong brand recognition Brand associated with expertise, quality and independence Periodical Books Seminars Media coverage Online/Newsletters © VZ Holding Ltd 25

  27. Slide 27: Long track record of organic growth and profitability

    Long track record of organic growth and profitability in CHF million Operating revenues1 Net profit1 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 93 95 97 99 01 03 05 07 09 11 13 15 17 19 93 95 97 99 01 03 05 07 09 11 13 15 17 19 1 1993–2003 according to SWISS GAAP; 2004–2020 according

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