VZ Holding AG · SIX:VZN

VZ — FY2017 Earnings Presentation

20 slides from VZ's earnings presentation, Mar 1, 2018

  1. Slide 1: Results and Outlook 2017

    VZ Group VZ Holding Ltd Beethovenstrasse 24 8002 Zürich 2017 Results and Outlook Telefon +41 44 207 27 27 Fax +41 44 207 27 28 www.vzch.com www.vzfinanzportal.com Zurich, 1 March 2018

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements This presentation contains forward-looking statements that involve known and unknown risks, uncertainties or other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by

  3. Slide 3: Agenda

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

  4. Slide 4: Summary 2017

    Summary 2017 Business development Financials • Unchanged growth across all business lines despite • Top line +10.3% to CHF 260.2 million increasing competition • Operating expenses +16.0% to CHF 149.2 million − Supported by positive financial markets − Adjusted for tax provision +11.9% − Strong new

  5. Slide 5: Revenues: Full-year comparison

    Revenues: Full-year comparison in CHF million1 +10.3% +4.2% 260.2 +15.0% +15.1% 235.9 22.2 226.4 19.3 30.2 • Consulting revenues2 +15.3% yoy +11.7% 196.9 18.5 29.2 4.2 171.1 16.5 30.3 2.3 18.9 • Banking revenues +3.4% yoy 16.9 17.8 153.2 15.7 24.9 16.3 21.6 15.9 • Net earned premiums 21.5 13.9 12.7

  6. Slide 6: Net profit: Affected by VAT-provision

    Net profit: Affected by VAT-provision in CHF million 86.8 84.3 84.1 70.4 • Net profit +3.2% yoy 60.0 • Adjusted for tax provision +8.1% 51.0 • Considering the tax provision and the set-up costs for VZ Depository Bank Germany, net profit and top line growth are in line • Net profit margin 33.4% vs. 3

  7. Slide 7: Financial Consulting: Improved performance in 2H

    Financial Consulting: Improved performance in 2H Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF million in CHF million 2’229 2’312 148 21.7 2’016 136 1’907 125 18.1 18.8 1’736 112 15.2 16.1 1’105 1’211 102 11.2 1’011 9.8 1’002 9.5 896 7.7 8.7 10.5 1

  8. Slide 8: Wealth Management: AuM +18.3%

    Wealth Management: AuM +18.3% in CHF million 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 yoy AuM total 12’114 14’549 16’495 18’415 21’775 +18.3% • PM mandates 7’813 9’319 10’277 11’116 13’136 +18.2% Share of total AuM 64.5% 64.1% 62.3% 60.4% 60.3% • Others1 4’301 5’230 6’218 7’299 8’639 +18.4% Shar

  9. Slide 9: 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, in % of total Share of WM clients who use 3+ platforms, in % of total WM WM clients clients 67.6% 63.9% 12.1% 9.6% 31.12.16 01.01.16 31.12.17 01.01.17 31.12.16 0

  10. Slide 10: Branch offices

    Branch offices Switzerland Germany #: 27 #: 4 Zurich branch office satellite new branch office in 2H17 © VZ Holding Ltd 9

  11. Slide 11: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook © VZ Holding Ltd 10

  12. Slide 12: Income statements (1)

    Income statements (1) in CHF million1 2014 2015 2016 2017 yoy Consulting fees 16.1 18.1 18.8 21.7 +15.8% Management fees: on AuM 139.6 160.7 167.3 184.7 +10.4% others 15.9 16.9 17.8 18.9 +6.3% Banking revenues 24.9 30.3 29.2 30.2 +3.4% Net earned premiums - - 2.3 4.2 n.m. Other operating revenues 0.

  13. Slide 13: Income statements (2)

    Income statements (2) in CHF million1 2014 2015 2016 2017 yoy EBITDA 91.3 106.5 107.2 111.0 +3.6% Depreciation and amortisation 5.1 5.8 6.8 8.4 +23.7% EBIT 86.2 100.7 100.4 102.6 +2.2% Net finance income 0.1 ‒0.2 0.0 0.0 - Profit before income tax 86.3 100.5 100.4 102.6 +2.2% Income tax 15.9 16.2 16

  14. Slide 14: Personnel expenses

    Personnel expenses in CHF million1 140 40.7% 40.6% 39.7% 40.0% 39.4% 38.4% 41.0 • +11.0% yoy 120 104.0 36.0 • Personnel development 100 93.7 31.0 86.9 77.6 31.12.15 31.12.16 31.12.17 80 69.6 26.0 62.2 21.0 FTE2 702.9 771.5 840.4 60 16.0 • 1H17: +22.2 FTE 40 2H17: +46.7 FTE 11.0 20 • Personnel expens

  15. Slide 15: Other operating expenses

    Other operating expenses in CHF million1 17.4% 13.8% 14.5% 14.2% 14.6% 14.8% 50 45.2 • +29.3% yoy 45 40 8.7 34.9 • Claims included in other operating expenses 35 33.0 8.1 (CHF 2.8 mio. in 2017) 30 28.1 8.2 24.8 7.6 2.8 • Adjusted for tax provision +14.4% 25 21.1 6.9 7.9 6.1 7.7 20 5.2 7.2 1.6 • Othe

  16. Slide 16: EBITDA and margin

    EBITDA and margin in CHF million1 160 45.6% 46.4% 47.0% 45.5% 44.9% 42.7% 46.0 140 41.0 120 106.5 107.2 111.0 36.0 • EBITDA +3.6% yoy 100 91.3 31.0 76.7 • Adjusted for tax provision +8.4% 80 69.8 26.0 21.0 • Adjusted for tax provision and set-up costs 60 16.0 VZ Depository Bank Germany +10.6% 40 11.

  17. Slide 17: Balance sheets

    Balance sheets in CHF million1 31.12.16 31.12.17 Cash & cash equivalents 758.3 695.5 Short-term investments 157.4 215.5 Swiss prime residential mortgages 1’110.8 1’247.3 • Financial investments: − Low risk profile CHF bonds, marketable securities 324.6 372.3 − Average time to maturity 31.12.17: 1.4

  18. Slide 18: Equity and payout ratios

    Equity and payout ratios Payout ratios 2015 2016 2017 Equity ratios 31.12.15 31.12.16 31.12.17 in CHF million Net profit 84.3 84.1 86.8 Total equity 377.2 420.1 459.5 in CHF million Retained earnings 50.9 50.6 52.3 Dividend total 33.4 33.5 34.5 1,2 Equity ratio3 18.8% 17.3% 17.0% Dividend per share

  19. Slide 19: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook © VZ Holding Ltd 18

  20. Slide 20: Outlook

    Outlook Future growth in two equally important dimensions: • New client inflow − Focus on 50+, wealthy, on-shore − Unrivalled expertise in retirement consulting and estate planning • Develop existing client base along the 5 service platforms: portfolio management, banking services, mortgages, 2nd an

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