Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (May 2020)
32 slides from Cembra Money Bank's investor presentation, May 2020
Slide 1: Cembra update
Cembra update Cembra - a leading player in financing solutions and services in Switzerland Investor presentation May 2020 Cembra
Slide 2: Key messages
Key messages What makes Cembra different Covid-19 update ■ Active only in Switzerland, with very strong ■ Swiss economy expected to remain relatively positions in select markets resilient, with recovery forecast in 2021 ■ High quality of assets – stable for >15 years ■ Strong Cembra business perform
Slide 3: Agenda
Agenda 1. What makes Cembra different 2. Cembra strategy 3. Covid-19 update Appendix 3 May 2020 Investor presentation Cembra
Slide 4: Cembra at a glance
What makes Cembra different Cembra at a glance A leading player in financing solutions and services in Switzerland Who we are Key figures 2019 Revenues (CHF) ■ Independent consumer finance specialist exclusively operating in Switzerland 1% ■ Serving more than 1 million customers through diversified
Slide 5: Strong market positions
What makes Cembra different Strong market positions Serving more than 1 million customers in Switzerland Personal loans: 44% market share Auto business: 23% market share Credit cards: 14% market share 2019 Personal loan receivables 2019 Leasing receivables 2019 Credit cards issued Independent Captiv
Slide 6: Track record
What makes Cembra different Track record Delivered on all targets since the IPO IPO targets (Oct 2013) 2014 2015 2016 2017 2018 2019 12.0% 37.0% Asset growth In line with Swiss GDP growth 2.1% -0.3% 0.9% Organic: 4.0% 5.4% Organic: 5.6% Profitability ROE >15% 17.0% 17.7% 17.4% 16.7% 16.9% 15.7% Capi
Slide 7: Balanced and diversified funding profile
What makes Cembra different Funding Balanced and diversified funding profile Funding mix 31.12.2019 In CHF m1 6,145 AT1 subordinated One issuance at 2.5%, remaining term to first call of 4.95 rs.4 250 150 Convertible bond One issuance at 0%, remaining term of 6.6 yrs.4 4,329 1,725 Senior unsecured T
Slide 8: Risk performance
What makes Cembra different Risk performance High quality of assets – loss performance stable in the long term Loss rate NPL and delinquencies² 4.0% Reported Adjusted for one-off¹ 3.0% 30+ days past due 2.0% 1.0 1.1 1.1 1.0 1.1 0.8 0.9 Non-performing loans (NPL)³ 1.0% 0.0% FY’14 FY’15 FY’16 FY’17 FY
Slide 9: Capital management
What makes Cembra different Capital management Disciplined use of capital, and continuous flow of dividends Capital position Dividends Tier 1 capital ratio as % CHF per share Extraordinary 4.45 dividend from 22% 20.6% excess capital 19.8% 20.0% 3.75 3.75 20% 19.7% 19.2% 19.2% 3.35 3.55 3.10 18% 2.85
Slide 10: Agenda
Agenda 1. What makes Cembra different 2. Cembra strategy 3. Covid-19 update Appendix 10 May 2020 Investor presentation Cembra
Slide 11: Our strategic priorities
Cembra strategy Our strategic priorities Aim to be the provider of choice for financial solutions in Switzerland Defend the core business Build for the future Gain size through growth ■ Maintain a leading market ■ Accelerate digitisation of the ■ Continue steady organic growth position in auto and p
Slide 12: Cembra is evolving
Cembra strategy Cembra is evolving Aspiration to further increase diversification 2010 2014 2018 20191 Aspiration (mid-term) 2% 1% Business mix 8% 22% as % of net revenues 23% 37% 40% 37% Personal loans 39% Auto 58% 20% Cards 69% 22% 22% Other Fee income 21% 21% 30% 31% as % of total income 43% 43%
Slide 13: Agenda
Agenda 1. What makes Cembra different 2. Cembra strategy 3. Covid-19 update Appendix 13 May 2020 Investor presentation Cembra
Slide 14: Q1 2020 macroeconomic environment
Covid-19 update Q1 2020 macroeconomic environment Swiss economy expected to decline by 6.7% in 2020 (Source: SECO) GDP in Switzerland CHF interest rates Unemployment rate in Switzerland Change vs. previous period in % End-of-period 3-year swap rates in % (Source: Bloomberg) In %, average per period
Slide 15: Q1 2020 products and markets
Covid-19 update Q1 2020 products and markets Personal loans and auto business stable, cards affected by lower spending Personal loans Auto loans and leases Credit cards Consumer loans market, in CHF bn (Source: ZEK) New cars Transaction volumes, in CHF bn Number of registrations, in 1,000 +1% Market
Slide 16: Q1 2020 performance
Covid-19 update Q1 2020 performance Cembra with overall strong business performance in Q1 Highlights Q1 2020 update1 Net financing receivables 31 March 2020 ■ Net revenues +19% in Q1 (organic growth +1%) Asset growth target: in line with Swiss GDP growth. In CHF m ■ Cards revenues impacted by Covid-
Slide 17: Covid-19 situation
Covid-19 update Covid-19 situation Well positioned to manage the future Strong quality of assets Solid capital position Secured long-term and liquidity funding ■ 100% consumer finance ■ Capital position ■ Balanced and in Switzerland significantly above diversified funding regulators’ requirements pr
Slide 18: 2020 priorities to adjust to new economic reality
Covid-19 update 2020 priorities to adjust to new economic reality Focus on execution and mitigation of Covid-19 effects Priorities for 2020 from Q2 2020 on Continue to deliver despite Covid-19 ■ Regain organic revenue growth in all businesses after the downturn ■ Manage costs and align with revenue
Slide 19: Risk management
Covid-19 update Risk management Prepared for a more challenging environment 2008 financial crisis 2020 Covid-19 Macro impact1 Risk measures taken 2008/09 and now Macro impact1 Unemployment (%) 5.0 Swiss GDP Change (%) ■ Operational performance: Unemployment (%) Swiss GDP Change (%) 6.0 5.2 4.0 5.0 3
Slide 20: Outlook
Covid-19 update Outlook Cembra expects to deliver a resilient business performance in 2020 Outlook 2020 Mid-term targets1 ■ Cembra currently expects do deliver a resilient ■ ROE >15% business performance in 2020, with revenues being impacted mainly by overall lower volumes ■ Tier 1 capital ratio tar
Slide 21: Agenda
Agenda 1. What makes Cembra different 2. Cembra strategy 3. Covid-19 update Appendix 21 May 2020 Investor presentation Cembra
Slide 22: Sustainability
Appendix Sustainability Improving external recognition ESG performance External recognition Governance ■ Strong and consistent governance structure since the IPO 1 Upgrade to A in April 2020 (and upgrade to BBB in June 2019) ■ Independent and diverse board ■ Operating exclusively under Swiss law and
Slide 23: cashgate integration
Appendix cashgate integration Project fully on track... no surprises Consolidate branch network Integrate businesses Commercial consolidation At 31 Dec 2019 2019 2020 Q3 Q4 Q1 Q2 Q3 Q4 B2B Single brand Business integration 16 Cembra branches IT integration 7 cashgate branches 3 Cembra service centre
Slide 24: cashgate: financial impact of acquisition
Appendix cashgate: financial impact of acquisition Pleasing financial contribution by cashgate In CHF m Growth on track in 2019 Impact on goodwill and intangibles 100% of bridge facility paid back cashgate, net financing receivables Purchase price allocation at closing date Cembra 5% 100% 5% 1,450 7
Slide 25: FY 2019 P&L
Appendix FY 2019 P&L In CHF m 2019 2018 as % Comments Interest income 359.8 330.0 9 1 Higher interest income driven by cashgate 7 Including effect of sale of 1.2m own Interest expense -27.8 -20.8 34 acquisition2, as well as asset growth in credit shares (4% of share capital) in July 2019 Net interes
Slide 26: FY 2019 Net revenues by source
Appendix FY 2019 Net revenues by source In CHF m Revenues by source Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +9% +39% +48% +9% 480 2,625 2,915 1,029 940 439 1,885 708 801 1,974 148 +2% 1,917 2,114 +7% 130 2018 201
Slide 27: FY 2019 Balance sheet
Appendix FY 2019 Balance sheet In CHF m Assets 31.12.19 31.12.18 as % Comments Cash and equivalents 543 499 9 1 Higher financing receivables driven by 3 Increase in funding to support acquisition Net financing receivables 1 6,586 4,807 37 cashgate acquisition, as well as organic of assets and asset
Slide 28: History
Appendix History Foundation –“Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction E. Uldry & Cie” in Fribourg Migros partnership and institutions in CH Exchange partnership
Slide 29: Key figures over years
Appendix Key figures over 10 years US GAAP 2010 2011 2012 IPO 2013 2014 2015 2016 2017 2018 2019 Net revenues (CHF m) 349 338 356 355 379 389 394 396 439 480 Net income (CHF m) 129 131 133 133 140 145 144 145 154 159 Cost/income ratio (%) 47.01 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 48.34 Net fin r
Slide 30: The Cembra share
Appendix The Cembra share Shareholder structure: 98% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 8% 2% ~11,000 registered 15% 8% private shareholders EU 10% 54% Switzerland 20% 83% US incl. CND ~1100 institutional investors Main i
Slide 31: 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 32: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences / virtual roadshows 23 July 2020 H1 2020 results 9-10 June 2020 MainFirst virtual Swiss Equity conference 19 February 2021 FY 2020 results 17 September 2020 UBS virtual Best of Switzerland conf