Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (September 2022)
35 slides from Cembra Money Bank's investor presentation, September 2022
Slide 1: Cembra Investor presentation September 2022
Cembra A leading player in financing solutions and services in Switzerland Investor presentation September 2022 Cembra
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. H1 2022 results 3. Outlook Appendix 2 September 2022 Investor presentation Cembra
Slide 3: About Cembra
Cembra at a glance About Cembra A leading provider of financing solutions and services in Switzerland Over 1 million customers Decades of experience in Leading positions Excellent track record in Switzerland Swiss consumer finance in selected markets on execution Outstanding performance 15.9% 4% +66
Slide 4: Market positions
Cembra at a glance Market positions Serving more than 1 million customers in Switzerland Personal loans: 40% market share Auto business: 21% market share Credit cards: 13% market share BNPL: 10-20% market share June 2022, personal loan receivables June 2022, leasing receivables April 2022, credit ca
Slide 5: Credit cards
Cembra at a glance Credit cards Transition of credit card customers to Certo! progressing as expected Strategic priorities Extended offering Reiterated guidance Retention Co-branding propositions (B2B2C) ■ Cembra expects to retain a large portion of cards issued ■ Attractive migration value proposit
Slide 6: Long-term risk performance
Cembra at a glance Long-term risk performance High quality of assets – loss performance stable over the long term Loss rate NPL and delinquencies¹ Reported Adjusted for one-off 3% 30+ days past due 2% 1.1 1.0 1.0 1% Non-performing loans (NPL)² 0.8 0.9 0.9 0.7 0.5 0.5 0% Jun’12 Jun’08 Jun’09 Jun’20 J
Slide 7: Capital management
Cembra at a glance Capital management Effective use of capital with continuous dividend payouts since the IPO Capital position Dividends Tier 1 capital ratio as % CHF per share Extraordinary dividend 4.45 from excess capital 22% 20.6% 3.85 19.8% 20.0% 3.75 3.75 3.75 20% 19.7% 19.2% 19.2% 18.9% 18.8%
Slide 8: Sustainability
Cembra at a glance Sustainability Strong ESG performance and ratings, and commitment to further improve Sustainability performance Selected targets External recognition E ■ Reduced direct (scope 1+2) emissions intensity significantly since 2014 Reduce direct carbon emissions Low ESG risk ■ 100% of e
Slide 9: Strategy 2022 – 2026
Cembra at a glance Strategy 2022 – 2026 Reimagining Cembra Key messages Strategic ambition We will leverage technology to deliver the most intuitive customer solutions in consumer finance Cembra’s We will draw on the strengths of our world-class credit factory and our leadership Core DNA in selected
Slide 10: Agenda
Agenda 1. Cembra at a glance 2. H1 2022 results 3. Outlook Appendix 10 September 2022 Investor presentation Cembra
Slide 11: H1 2022 operational highlights
H1 2022 results H1 2022 operational highlights Profitable growth – strategy implementation progressing well Overall performance further improved ■ Profitable growth in all businesses ■ Continued disciplined risk, funding and expense management ■ Timely introduction of repricing measures Strategy exe
Slide 12: H1 2022 performance
H1 2022 results H1 2022 performance Strong business performance Highlights Net income Net financing receivables Net revenues in CHF m in CHF m in CHF m ■ Net income of CHF 90.6 million Net interest income (+15%) +15% +4% Commission and fees +6% ■ +4% net financing receivables, with 235.9 250.0 all b
Slide 13: H1 2022 products and markets
H1 2022 results H1 2022 products and markets Profitable growth achieved in a dynamic market environment Personal loans Auto loans and leases Credit cards Buy now pay later (BNPL) Consumer loans market, in CHF bn Leasing market, in CHF bn Transaction volumes, in CHF bn eCommerce market, in CHF bn (fi
Slide 14: H1 2022 card transaction volumes and revenues
H1 2022 results H1 2022 card transaction volumes and revenues Strong volume recovery since March, and card fees above 2019 levels Annual growth Recovery of transaction volumes and card fees since Q1 2019 (pre-Covid) 2022 In CHF m In CHF m +18% Strong transaction volume recovery starting in March 3,2
Slide 15: H1 2022 profitability by source
H1 2022 results H1 2022 profitability by source Profitability increased by higher commissions Return on financing receivables 2.5% +0.3pp 2.8% Comments + Net revenues ■ Net interest income adversely affected by lower opening -0.1pp 5.5% balance and competitive market environment in Net interest inco
Slide 16: H1 2022 net revenues by source
H1 2022 results H1 2022 net revenues by source In CHF m Net revenues by source Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +6% +4% +2% 250 2,823 2,820 2,920 +8% 236 2,303 2,292 2,338 1,025 1,030 1,110 58 73 30.06.21
Slide 17: H1 2022 net financing receivables
H1 2022 results H1 2022 net financing receivables 4% growth Net financing receivables (month-end period, month by month) Comments in CHF m 6,600 +4% Increase in net financing receivables across all Cembra 6,400 channels driven by strong sales performance and the 6,200 recovery of credit card volum
Slide 18: H1 2022 funding
H1 2022 results H1 2022 funding Diversified funding profile Funding mix Funding programmes In CHF m1 5,849 5,700 5,888 AT1 subordinated One issuance, remaining term to first 150 150 250 150 call of 2.4 yrs. at a rate of 2.50%4 Non-Deposits – 44% 250 250 1,675 1,600 1,850 Convertible bond One issuanc
Slide 19: Interest rate sensitivity
H1 2022 results Interest rate sensitivity Slightly negative repricing gap – timely introduction of repricing measures As per 30 June 2022, in CHF m 7,247 7,247 Cash 486 Non-deposits 2,493 ■ Interest expense expected to increase moderately Personal 2,338 (FY 2022E of CHF 28m–30m vs. FY 2021 of CHF 26
Slide 20: Agenda
Agenda 1. Cembra at a glance 2. H1 2022 results 3. Outlook Appendix 20 September 2022 Investor presentation Cembra
Slide 21: Outlook
Outlook Outlook Overall resilient business performance expected in 2022 Outlook 20221 Financial targets until 2026 Deliver on strategic milestones ROE Tier 1 capital ratio Dividend per share ■ Press ahead with credit cards transition and migration to Certo! ■ Continue repricing measures 2022–23: 13–
Slide 22: Agenda
Agenda 1. Cembra at a glance 2. H1 2022 results 3. Outlook Appendix 22 September 2022 Investor presentation Cembra
Slide 23: Macroeconomic outlook
Appendix Macroeconomic outlook Switzerland with relatively low inflation and continued low unemployment rate GDP in Switzerland Swiss vs. Eurozone CPI Inflation CHF interest rates Swiss unemployment rate Change vs. previous period as % End-of-period 3-year swap rates as % As %, average per period 8
Slide 24: H1 2022 P&L
Appendix H1 2022 P&L In CHF m H1 2022 H1 2021 as % Comments Interest income 188.9 191.2 -1 1 Slightly decreasing interest income driven by 5 For details see slide on ‘Provision for losses’ Interest expense -12.3 -13.2 -7 lower opening receivables and decreasing Net interest income 1 176.7 178.0 -1 y
Slide 25: H1 2022 Operating expenses
Appendix H1 2022 Operating expenses In CHF m H1 2022 H1 2021 as % Comments Compensation and benefits 1 67.1 68.5 -2 1 Decline reflecting the lower number of 6 Increase driven by leasing write-off of closed Professional services 2 8.7 7.9 11 employees branches Marketing 3 6.2 3.9 57 2 Primarily relat
Slide 26: H1 2022 Balance sheet
Appendix H1 2022 Balance sheet In CHF m Assets 30.06.22 31.12.21 as % Comments Cash and equivalents 486 545 -11 1 Higher net financing receivables mainly driven by 2 Funding increased largely in line with the Net financing receivables 1 6,434 6,207 4 the lifting of pandemic restrictions and its grow
Slide 27: H1 2022 Provision for losses
Appendix H1 2022 Provision for losses Excellent loss performance Provision for losses 30+ days past due/NPL In CHF m 30.2 3% Reported 30+ days past due 23.9 22.0¹ 22.6² 2.0% 2.1% 2.8 Adjusted for one-off¹,² 1.9% 1.8% 8.2 2% 1.6% 15.0 19.2 1% 0.6% 0.7% 0.7% 0.6% 14.4 0.5% Non-performing loans (NPL)5
Slide 28: Capital management
Appendix Capital management Tier 1 capital ratio target of 17% Capital position Redeployment of excess capital Tier 1 capital ratio as % Additional Tier1 CET1 ratio ■ Mid-term Tier 1 capital ratio target of 17% 20% 17.7 18.9 18.8 15% 17.0% Mid-term target (since July 2019) ■ Maintain S&P A– rating t
Slide 29: Current expected credit losses (CECL)
Appendix Current expected credit losses (CECL) Changed standard for allowance for losses calculation Change from incurred to expected credit loss standard Expected financial impact Main differences Implementation of CECL as of 1 Jan 2023, based on US GAAP accounting Incurred loss concept CECL standa
Slide 30: History
Appendix History Foundation –“Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance Launched Updated commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction IKEA cards strategy E. Uldry & Cie” in Fribourg Migros partnership and in
Slide 31: Glossary of key figures
Appendix Glossary of key figures including alternative performance measures To measure its performance, Cembra uses some key figures that are not defined under US GAAP. This glossary provides definitions of alternative performance measures (APM) and other key figures Key figures (including APM) Defi
Slide 32: Key figures over 10 years
Appendix Key figures over 10 years IPO US GAAP 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 2013 Net revenues (CHF m) 355 379 389 394 396 439 480 497 487 250 Net income (CHF m) 133 140 145 144 145 154 159 153 161 91 Cost/income ratio (%) 50.5 42.5 41.5 42.5 42.4 44.0 48.3 49.8 50.6% 48.8% Net fin
Slide 33: The Cembra share
Appendix The Cembra share Shareholder structure: 100% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 7% 2% 8% ~18,000 registered 24% EU private shareholders 10% 55% Switzerland 20% 74% US incl. CND ~1,100 institutional investors Main
Slide 34: Cautionary statement regarding forward-looking statements
Appendix Cautionary statement regarding forward-looking statements This presentation by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group’s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financia
Slide 35: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences, roadshows and calls 23 February 2023 Publication 2022 full-year results 6 September 2022 Roadshow Geneva 15 March 2023 Publication 2022 Annual Report 8 September 2022 UBS Best of Switzerland c
Cembra Money Bank — Investor Presentation (September 2022) on 6ix