Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (April 2019)
28 slides from Cembra Money Bank's investor presentation, April 2019
Slide 1: Cembra is evolving
Cembra is evolving A leading player in consumer finance and cards Investor presentation, April 2019 Page Cembra Money Bank
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. FY 2018 results 3. Strategy and outlook Appendix Page 2 April 2019 Investor presentation Cembra Money Bank
Slide 3: Cembra at a glance
Cembra at a glance A leading player in consumer finance and cards Who we are Key figures (FY 2018) 2% Revenues ■ Independent consumer finance specialist exclusively Personal loans Auto 37% operating in Switzerland 39% CHF Cards 439mn Other ■ Strong market positions in personal loans (34% market shar
Slide 4: Strong market positions
Cembra at a glance Strong market positions 870,000 customers (+8% in 2018) Personal loans: 34% market share Auto business: 17% market share Credit cards: 13% market share Cembra Captives Independent Cembra Money • AMAG Leasing • Bank-now Money Bank Bank • BMW • Cashgate (34%) (13%) 2018 • FCA Capita
Slide 5: Track record
Cembra at a glance Track record Delivered on all targets since the IPO IPO targets (Oct. 2013) 2014 2015 2016 2017 2018 Net customer loan growth to Asset growth be moderate and in line with 2.1% (0.3)% 0.9% 12.0% 5.4% Swiss GDP growth Organic: 4.0% Profitability ROE target of at least 15% 17.0% 17.7
Slide 6: Agenda
Agenda 1. Cembra at a glance 2. FY 2018 results 3. Strategy and outlook Appendix Page 6 April 2019 Investor presentation Cembra Money Bank
Slide 7: Excellent performance in 2018
2018 Highlights Excellent performance in 2018 Delivery on all targets Highlights Net financing receivables Return on equity Target for assets growth: in line with Target ROE: >15% ■ +7% net income to Swiss GDP growth. In CHF mn +5% CHF 154.1mn (EPS 5.47) ■ +11% revenues, with stable 4,807 16.7% 16.9
Slide 8: Market environment
FY 2018 Financial results Products and markets Personal loans & Auto in line, cards outperforming market Personal loans Auto loans and leases Credit cards Market environment Consumer loans market, CHF bn Car registrations, in 1,000 cars Transaction volumes, CHF bn New cars -5% +6% +9% 354 317 314 30
Slide 9: P&L: Income statement and key ratios
FY 2018 Financial results P&L Income statement 2018 2017 % In CHF mn Comments Interest income 330.0 308.3 7 1 Higher interest income driven by EFL acquisition at Interest expense -20.8 -24.7 -16 the end of 2017, as well as credit cards asset growth and pricing change, partially offset by the Net int
Slide 10: Net revenues by source
FY 2018 Financial results Net revenues by source +11% growth In CHF mn Revenues by source Personal loans Auto lease and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +11% +6% +2% +13% 439 1,885 1,974 940 1,942 396 1,782 833 130 113 2017 2018 2017 20
Slide 11: Operating expenses
FY 2018 Financial results Operating expenses Income statement 2018 2017 % In CHF mn Comments Compensation and benefits 1 105.8 97.71 8 1 Increase in FTE driven by the acquisition of EFL Autoleasing AG, Swissbilling growth and digital Professional services 2 18.6 11.4 63 investments Marketing 3 8.5 6
Slide 12: Balance sheet
FY 2018 Financial results Balance sheet Assets 31.12.18 31.12.17 % In CHF mn Comments Cash and equivalents 1 499 418 19 1 Higher cash in 2018 due to higher deposits and other pay-ins Net financing receivables 2 4,807 4,562 5 Personal loans 1,885 1,782 6 2 Strong originations across all products in 2
Slide 13: Funding: continuous diversified funding since IPO
FY 2018 Financial results Funding Continuous diversified funding since IPO Funding mix since IPO Funding programmes In CHF mn1 Senior unsecured • Eight issuances of between CHF 50mn 4,329 4,052 to CHF 200mn each Non-Deposits – 35% 3,841 3,821 3,878 3,660 1,102 • WA2 remaining term of 4.5 yrs/avg. ra
Slide 14: Provision for losses
FY 2018 Financial results Provision for losses Loss performance in line with prior years Provision for losses 30+ days past due/NPL In CHF mn 4% 3% 1.8% 1.8% 1.8% 30+ days past due 2% 1% 0.4% 0.4% 0.4% Non-performing loans (NPL)2 50.1 43.6 44.6 45.1 0% Dec'15 Dec'16 Dec'17 Dec'18 Write-off performan
Slide 15: Strong capital position
FY 2018 Financial results Strong capital position 19.2% Tier 1 ratio Tier 1 capital walk1 Risk-weighted assets In CHF mn In CHF mn 19.2% +6% 19.2% 150 106 0 834 150 790 0 52 Excess 2 -106 Capital 4,114 4,346 790 782 31.12.2017 31.12.2018 31.12.2017 Statutory Ordinary Others 31.12.2018 net income div
Slide 16: Agenda
Agenda 1. Cembra at a glance 2. FY 2018 results 3. Strategy and outlook Appendix Page 16 April 2019 Investor presentation Cembra Money Bank
Slide 17: 2018 key focus areas
2018 Highlights 2018 key focus areas Partnerships Swissbilling Technology • eny finance partnership • Increased staff to 29 FTE • Launched Cembra mobile app developing very well • Opened Zurich office for credit cards • Lendico still in pilot phase • Signed major contract with • Samsung Pay and Swat
Slide 18: Cembra is evolving
Strategy and outlook Cembra is evolving 2010 2014 2018 Aspiration 2% Business mix 8% in % of net revenues 22% Personal loans 23% 37% 39% Auto 58% 69% 20% Cards Other 22% Fee income 21% 21% 30% in % of net revenues Costs 43% 43% 44% in % of net revenues Continue to focus on Switzerland Enlarge the fi
Slide 19: Cembra 2019-2021
Strategy and outlook Cembra 2019-2021 Key strategic investments Maintain momentum Invest in the future ■ Maintain market position in personal loans, ■ Investing ~ CHF 20 million in digitisation develop partnerships and online • CRM to improve cross-sell and up-sell • Simplify customer journey and ga
Slide 20: Outlook and guidance
Strategy and outlook Outlook and guidance 2019 Outlook 2019 EPS Guidance In CHF ■ Moderate revenue growth + Credit card growth - Remaining rate cap effect EPS 2019 ■ Stable loss performance 5.47 target range + in line with prior years’ performance CHF 5.40 - CHF 5.70 ■ Continued cost discipline 5.13
Slide 21: Agenda
Agenda 1. Cembra at a glance 2. FY 2018 results 3. Strategy and outlook Appendix Page 21 April 2019 Investor presentation Cembra Money Bank
Slide 22: FY 2018: operating expenses walk
Appendix FY 2018: operating expenses walk Increase largely driven by strategic initiatives Operating expenses walk In CHF mn 193.0 186.4 6.6 7.6 5.6 167.9 8.9 3.6 2017 One-off Strategic Acquisition incl Underlying 2018 Impact of new 2018 Actual data sourcing investments integration OPEX before ASC 6
Slide 23: History
Appendix History IPO in 2013 Foundation – “Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance commerciale et agricole cards through Migros products for retail Auto ABS Swiss FNAC cards transaction E. Uldry & Cie” in Fribourg partnership and institutions in CH Exchang
Slide 24: Asset quality history
Appendix Asset quality history Loss rate Delinquencies 4.0% 3.0% 30+ days past due 1,1 1,1 1,1 2.0% 1,0 1,0 1.0% Non-performing loans (NPL)1 0.0% 2014 2015 2016 2017 2018 Write-off performance by year of origination2 Credit grades³ 6.0% 2007 2% 100% 2008 13% 5.0% 2009 80% 2010 29% 4.0% 2011 60% 3.0%
Slide 25: Key figures since 2010
Appendix Key figures since 2010 IPO US-GAAP 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net revenues (CHF mn) 349 338 356 355 379 389 394 396 439 Net income (CHF mn) 129 131 133 133 140 145 144 145 154 Cost/income ratio (%) 47.0 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 Net fin receivables (CHF bn) 4
Slide 26: The Cembra share
Appendix The Cembra share Shareholder structure: 94% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30mn, in % Own shares Others 6% ~10,000 registered UK 8% 16% private shareholders 8% Zurich EU excl UK 10% 38% 20% 78% US incl. CDN 16% ~500 institutional investors
Slide 27: 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, financi
Slide 28: Calendar and further information
Calendar and further information Visit us on www.cembra.ch/investors Calendar Corporate events 17 April 2019 Annual General Meeting, Zürich 22 April 2019 Ex-Dividend date 23 July 2019 H1 2019 results Roadshows and conferences 6-8 May 2019 Roadshow Boston, Montreal, Toronto 14 May 2019 Kepler Cheuvre
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