Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Investor Day (June 2024)
75 slides from Kempen European High Dividend Fund N.V. N's investor day presentation, Jun 20, 2024
Slide 1: Growing further together – Welcome
Growing further together Welcome Investor Day 20 June 2024
Slide 2: Van Lanschot Kempen Investor Day 2024
Van Lanschot Kempen Investor Day 2024 Start Part 1 10:00 Part 1 Break 10:55 Maarten Edixhoven Wendy Winkelhuijzen Thomas Vanderlinden Start Part 2 Strategy Private Clients Netherlands Private Clients Belgium 20 min 20 min 15 min 11:15 Q&A 12:00 Part 2 Lunch 12:30 Erik van Houwelingen Wendy Winkelhui
Slide 3: Growing further together
Growing further together Growing Be a leadingfurther together wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium Further capitalise on the momentum in Private Banking Netherlands, and unlocking additional growth engines Reap the significant potential for growth
Slide 4: Compelling combination of services
Compelling combination of services Private Banking Investment Management Investment Banking • Foundation of our business • In-house investment engine • Specialist investment banking • Comprehensive wealth capabilities management services for • Focused expertise with individuals, entrepreneurs, disti
Slide 5: Our competitive edge builds on our mission and values
Our competitive edge builds on our mission and values Preserve and create wealth for our clients Personal Specialised Decisive Entrepreneurial and society in a sustainable way Being close to Deep expertise of Flat and agile Skin in the game: clients is in our investment, capital organisation >70% of
Slide 6: Strong track record in delivering on our strategy
Strong track record in delivering on our strategy Continuous strong AuM growth Significant improvement of C/I ratio (€bn) 135 (%) 79.6 >13% CAGR 55 -10pp 69.9 2016 Q1 2024 2016 Q1 2024 Very limited balance sheet growth Attractive dividend and capital returns (€bn) 17 15 <2% CAGR €800m >10% Aggregate
Slide 7: Significant market opportunities for growth
Significant market opportunities for growth Investable wealth in NL and BE expected to grow with >4.5% CAGR Increase in number of company sales in both NL and BE Beter plaatje uitzoeken Great wealth transfer and next generation wealth MvG: change pic AH: Replace with pic of Market consolidation expe
Slide 8: 2027 financial targets reflecting our ambitions
2027 financial targets reflecting our ambitions Continued strong growth 10% average annual AuM growth Scalable business model 67% – 70% C/I ratio Solid capital position 17.5% CET 1 ratio Attractive returns >18% RoCET 1 capital High dividend distribution 70% – 90% dividend pay-out ratio 8
Slide 9: Long-term focus demands dedication to sustainability
Long-term focus demands dedication to sustainability Sustainability targets Discretionary AuM: annual weighted average carbon intensity (WACI) 7% reduction (2019 baseline) Mortgages: annual carbon footprint per m2 9.5% reduction (2023 baseline) Own organisation: annual average carbon intensity per F
Slide 10: Three levers to achieve our 10% annual growth target
Three levers to achieve our 10% annual growth target Organic Inorganic Market performance • Established private banking • Active bolt-on M&A strategy • Positive market contribution growth engines with strong to our growth through the momentum in NL and BE • Successful track record of cycle acquiring
Slide 11: Continue track-record of disciplined bolt-on acquisitions
Continue track-record of disciplined bolt-on acquisitions Netherlands Bank cooperation Retail distribution 2016 2017 2018 2019 2020 2021 2022 2023 2024 Focus on opportunities in private banking and investment management in our core markets Strict criteria for acquisitions such as bolt-on and strong
Slide 12: Strong tech capabilities enable scalable growth
Strong tech capabilities enable scalable growth Strong diversified tech teams GenAI examples First company in NL live with Close business-IT alignment Microsoft 365 Copilot GenAI use cases: six live in production and seven in proof of concept Cloud frontrunner Agile way of working 250,000+ prompts o
Slide 13: Trust and reputation are essential
Trust and reputation are essential Comprehensive risk and compliance policies, frameworks and controls Clear limits set to maintain our strong capital and liquidity position Client due diligence and anti-money laundering processes fully embedded in client experience Risk awareness embraced in our cu
Slide 14: Our people make the difference
Our people make the difference Investing in talent development • Van Lanschot Kempen Academy • Young Private Banking program • Cultivating expertise, entrepreneurship, personal approach Nurturing high employee engagement • High satisfaction with 90% engagement score and eNPS >20 • Stimulating and pr
Slide 15: [People video]
[People video]
Slide 16: Growing further together – Private Clients Netherlands
Growing further together Wendy Winkelhuijzen Private Clients Netherlands
Slide 17: Strong starting position and momentum
Strong starting position and momentum Top of mind Satisfied clients Strong position and continuing growth Target group1 awareness NPS Total AuM and net inflow (€bn) 38 36 36 -0.1 1.1 2.3 1.3 1.5 0.9 Van Lanschot 34 26.4% Kempen 40 37 26 ABN AMRO 17.8% 23 31 27 24 22 ING 12.9% Rabobank 6.1% Insinger
Slide 18: Growing market with favourable trends
Growing market with favourable trends Investable wealth in NL expected to grow with >4.5% CAGR towards 2027 Increase in number of company sales in NL Great wealth transfer and next generation wealth MvG: Maybe not use pictures for slides on trends? Beter plaatje uitzoeken Or can we get a picture fro
Slide 19: Key differentiators position us well to act on trends
Key differentiators position us well to act on trends Personal and Relevant throughout In-house investment differentiating client life cycle capabilities client experience 19
Slide 20: Being close to our clients is in our DNA
Being close to our clients is in our DNA UHNW Semi- institutional Foundations & Family Offices Associations We are personal in engaging with clients Entrepreneurs Executives and entrepreneurial in developing Business tailored solutions HNW Healthcare Professionals that fit their needs Family members
Slide 21: We build deep relationships with our entrepreneur clients
We build deep relationships with our entrepreneur clients
Slide 22: Our offer is relevant throughout the client life cycle
Our offer is relevant throughout the client life cycle Wealth creation Financing requirement Main • Network • Expanding • Unburdening • Family & Governance needs • Growth capital • Estate planning • Anonymisation • Network • Financial security • Tax optimisation • Sparring partners • Philanthropy Fr
Slide 23: Title presentation
Title presentation 23
Slide 24: Differentiating investment proposition
Differentiating investment proposition AuM* Evi van Lanschot Discretionary In-house investment engine (€bn) 18% 25% • Key differentiator for private & semi-institutional clients Execution only 7% €37.0bn • Agility to respond to changing demands and Discretionary institutional trends Advice 26% 24% a
Slide 25: Multiple engines for further organic growth
Multiple engines for further organic growth Capture natural Benefit from the Attract new entrepreneurial market share great wealth transfer clients after company sale Continue growth at Expand in the Further build up Private Clients Switzerland UHNW segment Evi van Lanschot
Slide 26: Evi van Lanschot has the ambition to be platform of choice for affluent clients
Evi van Lanschot has the ambition to be platform of choice for affluent clients Good progress over last years Further growth ahead • Well on track with Robeco integration • Be the platform of choice by delivering high-quality • Successfully reintroduced savings product digital and personal approach
Slide 27: Wrap-up Private Clients Netherlands
Wrap-up 1 Strong starting position and momentum Private Clients Growing wealth management market with favourable trends Netherlands 2 that play to our strengths Differentiating with our personal approach and distinctive 3 investment solutions Clear growth opportunities across Evi, entrepreneurs, 4 U
Slide 28: Growing further together – Private Clients Belgium
Growing further together Pic to be updated Thomas Vanderlinden Private Clients Belgium
Slide 29: Investing together.
Investing together. 29
Slide 30: Belgium established as second home market
Belgium established as second home market Bringing together Excellent fit in terms of Staying true to the Adapted to the two strong houses client portfolio & Van Lanschot Kempen local context with rich histories network, product values offering & expertise 30
Slide 31: Completed integration with strong commercial momentum
Completed integration with strong commercial momentum Well-executed integration, all clients and all employees Track record of strong growth, also during integration fully onboarded within 12 months AuM (€bn) 13.1 0.7 Accuro 13% CAGR 11.2 • Integrated two organisations with ~170 FTE 9.6 9.1 • Migrat
Slide 32: Belgium is a highly attractive private banking market
Belgium is a highly attractive private banking market Investable wealth c. €700bn, 20% larger than in the Netherlands Expected to grow with >4.5% CAGR towards 2027 75% of Belgian companies are family businesses 50% expect an external sale in the near future Belgian clients are known to be loyal clie
Slide 33: Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium
Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium Our top priority is to deliver an impeccable service and experience to our clients 33
Slide 34: Excellent client service is our top priority
Excellent client service is our top priority Wealth planning Knowing needs of our Discretionary Investment advice key client segments • Investment by our experts • Clients retain control based on client mandate while benefiting from Simple and • Investing together our expertise straightforward offer
Slide 35: Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium
Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium Our top priority is to deliver an impeccable service and experience to our clients We aim to fully capture the Belgian growth opportunity by radiating a distinctive identity and leveraging a clear set of USPs 35
Slide 36: Distinctive profile key to capturing growth opportunities
Distinctive profile key to capturing growth opportunities “You invest differently Strong new brand Partnership, expertise Investment philosophy with your own money” with deep roots and and conviction driven by fundamental broad recognition analysis and long-term Stéphane Mercier view 36
Slide 37: Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium
Mercier Van Lanschot aims to be the top-of-mind private bank in Belgium Our top priority is to deliver an impeccable service and experience to our clients We aim to fully capture the Belgian growth opportunity by radiating a distinctive identity and leveraging a clear set of USPs Geographically expa
Slide 38: Operating model combines local strengths with leveraging the platform
Operating model combines local strengths with leveraging the Van Lanschot Kempen platform IT Platform Client relationship Risk & Compliance Relevant product offering Investment Banking & Investment Management 38
Slide 39: Wrap-up Private Clients Belgium
Wrap-up 1 Completed integration with strong commercial momentum Private Clients Belgium 2 Ambition to be a leading player in a growing market Distinctive profile key to capture opportunities in growing 3 market Operating model combines local strengths with leveraging the 4 Van Lanschot Kempen platfo
Slide 40: [Message related to video]
[Message related to video] Video to be inserted
Slide 41: Van Lanschot Kempen Investor Day 2024
Van Lanschot Kempen Investor Day 2024 Start Part 1 10:00 Part 1 Break 10:55 Maarten Edixhoven Wendy Winkelhuijzen Thomas Vanderlinden Start Part 2 Strategy Private Clients Netherlands Private Clients Belgium 20 min 20 min 15 min 11:15 Q&A 12:00 Part 2 Lunch 12:30 Erik van Houwelingen Wendy Winkelhui
Slide 42: Growing further together – Investment Management Clients
Growing further together Pic to be updated (MvD) Erik van Houwelingen Investment Management Clients Thomas corporate pic to be added
Slide 43: Individually strong, stronger together
Individually strong, stronger together Individual • Leading commercial Fiduciary Manager in NL & challenger in UK Fiduciary Management Investment Strategies • Specialised boutique manager for Institutional Clients for Wholesale Clients • Winning private bank in NL & BE Together • Fiduciary Managemen
Slide 44: Powering Van Lanschot Kempen's investment offering
Powering Van Lanschot Kempen’s investment offering Investment Management Clients: net inflow of €26bn in the last 5 years Private Banking Clients Fiduciary Management Alternative Investment Solutions Investment Strategies Wealth Solutions | Discretionary Sustainable Multi-Asset Alternative Equity Im
Slide 45: Two years of work completed to enable scalable growth
Two years of work completed to enable scalable growth Established scalable Improved commercial Strengthened cooperation operating model strength with Private Banking • Invested significantly in • Focused on a limited number • Introduced core-satellite, operations and IT of strategies leveraging in-h
Slide 46: Grow as active manager with distinctive offering
Grow as active manager with distinctive offering Investment alpha investment strategies • Our high-conviction investment culture has resulted in a long-term (As per 31 March 2024) track record with significant outperformance across our strategies Private Markets • Ambition to grow as boutique with s
Slide 47: Ready for profitable growth in Fiduciary Management
Ready for profitable growth in Fiduciary Management Developed into a leading player Well-positioned in a changing market Multiple growth opportunities AuM • Our fiduciary capabilities are (€bn) 67 • New pension agreement increasingly relevant in a complex 60 60 64 58 51 • Alternatives & Impact and c
Slide 48: [Message related to video: interview Clara CEO]
[Message related to video: interview Clara CEO]
Slide 49: Investment Management Clients offers solutions tailored to Private Clients segments
Investment Management Clients offers attractive solutions tailored to our Private Clients segments UHNW Bespoke Our fiduciary management capabilities are a Semi-institutional discretionary with key USP for our UHNW clients who look for a Foundations & individual lines pension fund type approach and
Slide 50: Wrap-up Investment Management
Focus on growth engines: further pension fund consolidation, Wrap-up 1 alternatives for private and institutional clients and specialised strategies Investment Firm cost control: scaling fewer but distinctive strategies and Management 2 continuing to invest in automation Clients More scalable with c
Slide 51: Growing further together – Investment Banking Clients
Growing further together Wendy Winkelhuijzen Investment Banking Clients
Slide 52: Specialised investment bank with a sector-focused strategy
Specialised investment bank with a sector-focused strategy, closely cooperating with Private Banking Market leader in Market challenger Diversified Cross-sell with Invest in talent real estate and in infrastructure revenue mix with Private Banking life sciences and tech & fintech capital-light busin
Slide 53: Strong track record in focus sectors
Strong track record in focus sectors based on personal and long-term relationships with our clients Leading ECM house in our core sectors Waterfront coverage • >200 ECM transactions (>€36bn) in • >150 companies in our 17 countries since 2015 core sectors Equity Research • >90% of the time as global
Slide 54: Momentum in Investment Banking is returning
Momentum in Investment Banking is returning Net result before tax (€m) 19 10 10 10 Focus on cost control, without compromising capabilities -4 Selectively scaled down teams 2019 2020 2021 2022 2023 Secured succession of seniors by Quarterly commission income younger talent (€m) +38% 12 Implemented s
Slide 55: Slide 55
Slide 56: Cooperation between Investment Banking and Private Banking is taking off
Cooperation between Investment Banking and Private Banking is taking off Examples of recent transactions of the Investment Bank with significant involvement of the Private Bank Sell-side advisory of company Onboarding of an executive Providing access to an Equity of a Private Banking client of a Nas
Slide 57: Wrap-up Investment Banking
Specialised investment bank with a sector-focused Wrap-up 1 strategy Investment Strong track record in focus sectors based on personal and Banking 2 long-term relationships with our clients Clients 3 Momentum is returning after a difficult 2023 Cooperation between Investment Banking and Private 4 Ba
Slide 58: Growing further together – Chief Financial Officer
Growing further together Jeroen Kroes Chief Financial Officer
Slide 59: Growing further together
Growing further together Growing Be a leadingfurther together wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium Further capitalise on the momentum in Private Banking Netherlands, and unlocking additional growth engines Reap the significant potential for growth
Slide 60: 2027 financial targets focused on generating shareholder return
2027 financial targets focused on generating shareholder return from scalable and profitable growth Financial target Former target 2027 target Historic performance Average annual AuM growth 10% → 10% 12.5% average last 5 years C/I ratio 70% → 67 – 70% 71.6% in FY2023 CET 1 ratio 17.5% → 17.5% c.18.5
Slide 61: Our strategy is expected to lead to significant AuM growth
Our strategy is expected to lead to significant AuM growth AuM development (€bn) 13% CAGR 57 127 Target of 10% average annual AuM growth Organic Distributed across: • Organic inflow, inorganic inflow and Inorganic 70 Market market performance • Our segments and product offerings 2018 2023 61
Slide 62: Continue our disciplined approach of inorganic growth
Continue our disciplined approach of inorganic growth Focus on bolt-on acquisitions Primarily targets focusing on assets under management Beter plaatje uitzoeken Leveraging our established integration capabilities Contributing to financial targets after two years Funded through own capital and poten
Slide 63: Continued focus on cost control and efficiency optimisation
Continued focus on cost control and efficiency optimisation Cost/income ratio (%) Cost/income ratio Old Target New Target • Focus on process optimisation to enable scalable growth 79.6% • When market circumstances require, we will take necessary measures 70% 69.9% 70% • Investment in inorganic growt
Slide 64: Tight cost control and efficiency optimisation also allow for investments
Tight cost control and efficiency optimisation also allow for investments in future growth and scalability Examples of recent cost control and efficiency Examples of recent investment in future growth and improvement measures scalability • Cost synergies integration Mercier Vanderlinden • Hiring of
Slide 65: Process optimisation led to a c. 60% productivity gain
Process optimisation led to a c. 60% productivity gain within Client Administration Example of productivity gain within Client Administration (FTE) FTE required at 2018 109 productivity levels Significant growth in workload off-set by productivity improvements • Automation c. 60% • Robotics producti
Slide 66: Good starting position for further diversified commission income growth
Good starting position for further diversified commission income growth Annualised recurring fees* (€m) 11% CAGR Current margins • Private Clients Netherlands(1) ~60bps • Evi van Lanschot ~35bps • Private Clients Belgium ~80bps 451 415 • Investment Management Clients ~15bps 360 340 (1) Excluding Evi
Slide 67: First quarter of 2024 shows resilient interest income
First quarter of 2024 shows resilient interest income Interest income Interest margin (€m) (12-month moving average) 1.24% 1.18% 1.17% 48 1.01% 108 0.98% 93 89 0.88% 76 78 70 0.92% 48 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 Q1 2024 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 Q1 2024 67
Slide 68: External developments may impact our results
External developments may impact our results Impact of scenarios Negative Neutral Positive Higher stock markets levels Lower stock market levels Stronger wealth growth in NL and BE Persistently higher inflation Return to zero interest rates Macroeconomic downturn - loan portfolio 68
Slide 69: Solid capital position
Solid capital position CET 1 ratio • We have set our CET 1 ratio target at 17.5% Basel IV (% as per Q1 2024 ) fully loaded and we allow for a temporary undershoot c. 20.5% of up to 2.5% of our CET 1 ratio for M&A. We commit 19.3% to returning to our 17.5% target within two years, DNB mortgage floor
Slide 70: We will continue our capital-light proposition
We will continue our capital-light proposition Total Risk Exposure Amount Not to scale - For illustrative purposes only (€m as per FY2023 ) 4,409 • We use our balance sheet primarily for mortgages Private Clients Netherlands 68% • TREA is expected to increase modestly – Expected higher income levels
Slide 71: Higher dividend pay-out ratio
Higher dividend pay-out ratio Dividend pay-out ratio (%) New target 90% • Our capital-light wealth management proposition allows us to grow organically Former target without the need for a lot of additional 70% 70% capital • Subsequently this allows us to distribute a large majority of our profit 50
Slide 72: Growing further together – Chair of the Management Board
Growing further together Maarten Edixhoven Chair of the Management Board
Slide 73: Growing further together | Wrap-up and Q&A
Growing further together | Wrap-up and Q&A Be a leading wealth manager in Western Europe, with a solid 2027 financial targets foundation in the Netherlands and Belgium 10% average annual AuM growth Further capitalise on the momentum in Private Banking Netherlands, and unlocking additional growth eng
Slide 74: Growing further together – Thank you
Growing further together Thank you Investor Day 20 June 2024
Slide 75: Disclaimer
Disclaimer Disclaimer and cautionary note on forward-looking statements This document may contain forward-looking statements and targets on future events and developments. These forward-looking statements and targets are based on the current insights, information and assumptions of Van Lanschot Kemp