Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Investor Presentation (November 2022)
38 slides from Kempen European High Dividend Fund N.V. N's investor presentation, November 2022
Slide 1: Investor presentation
ee November 2022 Investor presentation
Slide 2: Van Lanschot Kempen at a glance
Van Lanschot Kempen at a glance An independent, specialist wealth manager with the aim to create and preserve wealth for our clients and society in a sustainable way Focus on private, institutional and corporate clients Core activities private banking, professional solutions, investment management a
Slide 3: Solid performance on all key financials
Solid performance on all key financials H1 2022 H1 2021 2021 Net result €48.2m €58.3m €143.8m CET 1 ratio 20.2% 21.9% 23.7% Total capital ratio 25.8% 25.5% 30.1% Client assets €118.5bn €121.0bn €131.1bn AuM €99.6bn €104.6bn €112.1bn Loan book €9.1bn €8.7bn €8.9bn (excluding provisions) 3
Slide 4: We have a clear focus on our client groups
We have a clear focus on our client groups Private Clients Wholesale & Institutional Investment Banking Clients Clients • Offices in NL, BE and CH • Fiduciary wealth management for • Equities research and trading, • Wealth management services for institutional clients capital market transactions, en
Slide 5: We are an independent specialist wealth manager with clear ambitions
We are an independent specialist wealth manager with clear ambitions A leading wealth manager in the Netherlands and Belgium that creates and preserves wealth in a sustainable way The leading wealth management platform for the mass-affluent market in the Netherlands, combining online with a personal
Slide 6: Continuous capital-light growth
Continuous capital-light growth Organic growth Bolt-on acquisitions Market performance
Slide 7: Our mid-term financial targets - A solid business model
Our mid-term financial targets - A solid business model CET1 ratio Efficiency ratio Return on CET1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle Capital Markets Day 7
Slide 8: 2022 half-year results
ee 2022 half-year results
Slide 9: H1 2022 – key messages
H1 2022 – key messages Net profit: €48.2m, underlying net profit €60.7m • Strong increase in commission income (+15%) and decrease in interest income (-8%) • Operational expenses up due to organic and inorganic – Mercier Vanderlinden acquisition – growth Net AuM inflow of €4.9bn • Private Clients ne
Slide 10: H1 2022: performance
H1 2022: performance Net result €48.2m Operating expenses (H1 2021: €58.3m) AuM €99.6bn Strong capital position €216.0m (-11%) CET 1 ratio 20.2% (+10%) Underlying net result: (2021: 23.7%) €60.7m (H1 2021: €59.2m) Commission Efficiency ratio Client assets €118.5bn Release from loan loss Income €201.
Slide 11: Overview of net result
Overview of net result €m H1 2022 H1 2021 % change H2 2021 % change Commission 201.3 175.7 15% 209.9 -4% Interest 69.7 76.1 -8% 77.5 -10% Other income 22.0 17.5 26% 38.1 -42% Income from operating activities 293.1 269.3 9% 325.4 -10% Operating expenses -216.0 -196.8 10% -213.1 1% Gross result 77.1 7
Slide 12: Net result amounts to €48.2m
Net result amounts to €48.2m Key drivers of net result (€ m) *Special items include a.o. amortisation of intangible assets arising from acquisitions, expenses related to accounting treatment of Mercier Vanderlinden, restructuring charges and a provision for an interest-rate derivatives case 12
Slide 13: Private Clients: continued high net inflows
Private Clients: continued high net inflows AuM (€ bn) 1.4 -6.0 • Net inflow: 50% non-discretionary, 44% discretionary and 6% investment strategies • Net inflow well spread across NL, BE, CH and Evi 44.6 44.6 • Operating profit before tax at €55.5m (H1 2021: 40.0 40.1 €51.1m) • Underlying operating
Slide 14: Private Clients: €0.6bn net inflow at our Belgium franchise
Private Clients: €0.6bn net inflow at our Belgium franchise AuM (€ bn) • Very good collaboration with the Belgium wealth manager Mercier Vanderlinden 9.7 9.1 • Mercier Vanderlinden clients will use Van Lanschot Kempen Belgium as custodian from 3.7 4.1 October • Growth in Lombard lending 2019 2020 20
Slide 15: Wholesale & Institutional Clients: €3.5bn net inflow
Wholesale & Institutional Clients: €3.5bn net inflow AuM (€ bn) 3.8 -0.3 -0.1 -11.5 67.5 67.5 71.1 71.0 59.5 59.5 31/12/2021 Net inflow Net inflow Net inflow asset Market 30/06/2022 ficudiary investment class solutions performance management strategies • Net inflow driven by fiduciary advisory manda
Slide 16: Our offering for Wholesale & Institutional Clients
Our offering for Wholesale & Institutional Clients Fiduciary Asset class Investment management solutions strategies €49.7bn €2.1bn €7.6bn* Small caps Pension funds (SDG) Farmland Sustainable equity Insurers Private real estate Dividend Credits Family offices and European private debt foundations Rea
Slide 17: Annualised recurring management fees
Annualised recurring management fees Annualised recurring fees (€ m) AuM breakdown (~%) 10% 25% Private Clients 65% 359.5 329.6 306.9 270.3 30% 25% Wholesale & Institutional Clients 45% YE2020 HY2021 YE2021 HY2022 Equities Bonds Other • Stable AuM margins: Private Clients: 62 bps (2021: 62 bps); Who
Slide 18: Investment Banking Clients
Investment Banking Clients Commission income (€ m) • More M&A activity in H1 2022 compared to more ECM activity in H1 2021 • Strong franchise – proven by number of successful transactions with repeat CF clients 26.4 29.0 26.3 (five-year period) 58% 22.5 24.3 • Continued focus on collaboration betwee
Slide 19: Interest income
Interest income Interest income (€ m) Interest margin (12-mth moving average) (%) 1.13% 1.03% 1.01% 77.0 75.1 76.1 77.5 0.98% 69.7 1.08% 0.88% 0.98% 0.94% 0.92% 0.86% H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 Clean interest margin* Interest margin • Decrease dri
Slide 20: Income from securities and associates
Income from securities and associates Income from securities and associates (€ m) • A stake held by private equity fund Newion II – in which we invest – was sold, book profit: €7.4m • Results on own investment funds at €1.7m (H1 18.0 2021: €8.3m) – combined income from securities and associates of -
Slide 21: Result on financial transactions
Result on financial transactions Result on financial transaction (€ m) • Significant improvement driven by higher result on hedges (see previous slide) and higher result 15.8 on currency trading • At end June 2022, the structured products macro-hedge portfolio amounted to €355m -4.8 -5.5 (YE2021: €3
Slide 22: Development of operating expenses in line with organic and inorganic growth
Development of operating expenses in line with organic and inorganic growth Operating expenses (€ m) 11.1 1.1 0.9 6.1 202.9 214.0 215.1 216.0 196.8 196.8 H1 2021 Mercier Staff costs Regulatory levies Other H1 2022 Vanderlinden • Staff costs increased due to higher number of FTEs (HY2021: 1,588, YE20
Slide 23: Loan portfolio
Loan portfolio €m Loan Loan % change Impaired Provision Impaired Coverage portfolio portfolio loans ratio ratio 30/06/2022 31/12/2021 Mortgages 6,365 6,337 0% 24 1 0.4% 5% Other loans 2,376 2,199 8% 89 30 3.7% 34% Loan portfolio 8,741 8,536 2% 113 31 1.3% 28% Mortgages distributed by third parties 3
Slide 24: Release from loan loss provisions
Release from loan loss provisions Additions to loan loss provisions (€ m) Loan loss provision per stage -16 bps* -40 bps* -34 bps* €m 30/06/2022 31/12/2021 change Stage 1 4.5 3.6 24% Stage 2 5.4 3.5 56% -3.5 Stage 3 31.3 42.4 -26% Total 41.1 49.5 -17% -7.2 -8.1 • Current management overlay amounts t
Slide 25: Strong CET 1 ratio at 20.2%
Strong CET 1 ratio at 20.2% Common Equity Tier 1 ratio (%) -3.3 0.2 -0.4 • €122m excess capital, excluding retained earnings 2022 (above 17.5% CET 1 ratio) • Robust capital position enables capital return 23.7 20.4 20.0 20.0 20.2 proposal of €1.50 per share (c. €60m in total) • CET 1 ratio target: 1
Slide 26: Financial targets overview
Financial targets overview Common Equity Tier 1 ratio Dividend pay-out ratio* 50-70% 15% + 2.5% 23.8% 24.3% 23.7% 21.1% 20.2% 65% 61% 57% 53% n/a 2018 2019 2020 2021 H1 2022 Medium 2018 2019 2020 2021 H1 2022 Medium term term Efficiency ratio Return on Common Equity Tier 1* 70.0% 12.0% 79.4% 85.7% 7
Slide 27: Q3 trading update
ee Q3 trading update
Slide 28: Q3 trading update
Q3 trading update • Strong quarterly result in line with first two quarters of 2022 • Net AuM inflows at Private Clients: €0.4 billion (YTD: €1.8 billion) and at Wholesale & Institutional Clients: €0.2 billion (YTD: €3.7 billion) • Client assets: €115.3 billion (end of June 2022: €118.5 billion) and
Slide 29: Appendix
ee Appendix
Slide 30: Key figures by segment – H1 2022
Key figures by segment – H1 2022 €m Private Wholesale & Investment Other Total Clients Institutional Banking Clients Clients Commission income 137.0 38.3 24.3 1.7 201.3 Interest income 68.1 -0.0 0.0 1.6 69.7 Other income 1.5 -0.1 -1.8 22.4 22.0 Income from operating activities 206.7 38.2 22.5 25.7 2
Slide 31: Progress on our non-financial KPIs
Progress on our non-financial KPIs KPI Target Sc o re 2022 H1 Sc o re 2021 Financial Three-year relative performance of our managed propositions > benchmark -0.1% n/a capital Human and Employer Net Promoter Score (eNPS) >10 17 13 intellectual Employee engagement score > 80% n/a 88% capital Percentag
Slide 32: High scores on external ESG ratings
High scores on external ESG ratings Good score on governance / transparency Other ESG ratings and benchmarks 1st in our peer group of Top decile medium-sized banks 8th place in league table of 4th in group of 97 peers rated 236 entrants on sustainability 18th Place in a league table A+ score for res
Slide 33: Van Lanschot Kempen Partnership
Van Lanschot Kempen Partnership • This summer we launched the Van Lanschot Kempen Partnership – a long-term participation plan for key senior employees • Its purpose is to anchor leadership more broadly in our organisation, to further stimulate ownership and entrepreneurial spirit, and to create mor
Slide 34: Management Board
Management Board Maarten Edixhoven Jeroen Kroes Wendy Winkelhuijzen Arjan Huisman (1971) Richard Bruens (1967) Erik van Houwelingen (1965) (1971) (1973) (1978) COO Client Management & Investments Strategies & Chair CFO CRO Origination Solutions Appointed Appointed Appointed Appointed Appointed Appoi
Slide 35: Supervisory Board
Supervisory Board Frans Blom Manfred Schepers Karin Bergstein Brigitte Boone Bernadette Langius Maarten Muller Lex van Overmeire (1962) (1960) (1967) (1960) (1960) (1954) (1956) Chair Vice-Chair Appointed: 2018 Appointed: 2017 Appointed: 2020 Appointed: 2021 Appointed: 2015 Appointed: 2018 Appointed
Slide 36: Van Lanschot Kempen shares
Van Lanschot Kempen shares Development of share price and trading volume Movements in Van Lanschot Kempen's share price Jun-18: Ex- Jun-19: Ex- Jun-21: Ex- Oct-21: Ex- Jun-22: Ex- compared with industry indices dividend €1.45 dividend €1.45 dividend €0.20 dividend €1.95 dividend €2.00 250% €30 90,00
Slide 37: We have a diversified shareholder base
We have a diversified shareholder base Van Lanschot Kempen’s shareholder base at 25/08/2022 10.1% Romij 9.8% LDDM Holding Janus Henderson Group 5.6% FMR 5.0% Management & employees 62.0% J. B. Meulman 4.2% Other 3.0% 37
Slide 38: 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
Van Lanschot Kempen — Investor Presentation (November 2022) on 6ix