Slide 1: GAM Holding AG Full Year Results Presentation
GAM Holding AG Full Year Results Presentation 27th March 2024 This marketing material is restricted to eligible professional/institutional investors only in compliance with applicable laws. Please see “Important Legal Information” at the end of this presentation. This document is confidential and in
Slide 2: Group Overview
Group Overview Distinctive product offering combined with significant global presence and reach CHF Global distribution and investment presence, with 19.3bn 16 offices in: 19 78 % of GAM’s AuM in Investment 14 Management independent Assets under Management* have outperformed their relative countries
Slide 3: Key Highlights
Key Highlights 2023 and into Q1 2024 GAM held an Extraordinary General Meeting on 27 September 2023 where over 99% of shareholders voted in favour of a new board with a clear mandate to turnaround the company. The firm is now stabilised following the investment of our strategic anchor shareholder NJ
Slide 4: GAM Strategy
GAM Strategy Four strategic pillars Strategic Pillars Clients Amplification Diversification Effectiveness Focusing on clients in our Amplifying and growing our Diversifying into new Enhancing effectiveness by existing core markets core active strategies investment product areas reducing complexity t
Slide 5: Strategic Progress: Clients
Strategic Progress Clients Strengthening GAM’s global distribution footprint, client relationship management and revenue generating capabilities. • Hiring additional salespeople in core markets, particularly in Europe and Australia, and establishing a new sales branch in Paris. • Advanced discussion
Slide 6: Strategic Progress: Amplification
Strategic Progress Amplification GAM's strong investment performance supporting and encouraging client activity. • 2023 was one of the toughest years for the active asset management sector globally. Year to date 2024, twelve GAM strategies have produced positive net new money. • 78% of Investment Ma
Slide 7: Strategic Progress: Diversification
Strategic Progress Diversification Diversifying into new investment product areas and building wealth management offering by leveraging GAM’s heritage of active management and building strategic partnerships. • A number of new partnerships in the alternative space are under development, including ex
Slide 8: Strategic Progress: Effectiveness
Strategic Progress Effectiveness Significant progress in optimising GAM’s operational structure to focus on core investment management capabilities and its clients. • The sale of our FMS1 business for third-party funds to Carne Group successfully completed on 31 January 2024. • Agreement reached wit
Slide 9: Additional Updates: Sustainability
Additional Updates Sustainability Diversity, Equity and Inclusion (DEI): The nomination of three experienced female board of director candidates who will increase gender diversity as part of GAM’s commitment to DEI. Our overall gender split at GAM remained at Male: 61%, Female: 39%, with an average
Slide 10: Proposal to Strengthen Balance Sheet
Proposal to Strengthen Balance Sheet AGM 15th May 2024 Rights issue for up to CHF 100 million, to provide enhanced long-term stability for GAM and support its growth strategy, will be proposed at AGM on 15 May 2024. To be fully underwritten by Rock Investment SAS, a group company of GAM’s anchor sha
Slide 11: NJJ's Investment Approach and Support for GAM
NJJ’s Investment Approach and Support for GAM NJJ has an extraordinary long-term investment record and has demonstrated its ability to create significant value €15bn portfolio Media and Asset Telecoms Venture capital Real estate others management Various real estate Controlling shareholder (2014) of
Slide 12: AGM Proposals
AGM Proposals 15 May 2024 A rights issue, fully underwritten by Rock Investment SAS (“Rock”), of up to CHF 100 million to effectively capitalise the Rock loan facility. This will be subject to the Swiss Takeover Board providing Rock with an exemption from the mandatory takeover requirements when cro
Slide 13: GAM Looking Forward
GAM Looking Forward Sustainable growth and profitability Sustainable Growth Clients Implement Reset Amplification Financial Stability Sustainable Growth and Profitability Our Talent Diversification Effectiveness Source: GAM 13
Slide 14: 2023 Financial summary
2023 Financial summary Expense reductions offsetting income decline (in CHFm, except where indicated) Source: GAM. 1 Relative percentage change, except for the operating margin which reflects the absolute change in percentage points (pp). 14
Slide 15: Management Fee Margin
Management Fee Margin Fee margins relatively stable Investment Management (in bps) • Investment management full year margin at 49.7bps down from 51.0bps at FY 2022 due to asset mix • Average management fee margin for FY 2024 is expected to reduce to approximately 45bps however this will depend on fu
Slide 16: Expenses
Expenses Underlying expenses reduced by CHF 29.2 million (in CHFm, except where indicated) Change Change 2023 2022 in CHF in % Fixed personnel expenses1 83.7 91.7 (8.0) (9%) Driven by headcount reduction. Variable personnel expenses2 13.1 22.0 (8.9) (40%) Underlying personnel expenses 96.8 113.7 (16
Slide 17: Efficiency Programme
Efficiency Programme ~CHF 195 million of total cost savings and reduction of 447 FTEs since 2018 Total expenses FY 2018 – FY 2023 (in CHFm) CHF 29.2 million savings in ~CHF 123 million of fixed cost Continuing to reduce costs expenses delivered in FY savings and reduction of 447 FTEs through strateg
Slide 18: IFRS Net Loss
IFRS Net Loss IFRS net loss impacted by brand impairment (in CHFm, except where indicated) 2023 2022 Underlying (loss) before taxes (49.5) (42.5) Acquisition-related items1 0.4 (0.3) Non-core items2 31.8 224.0 IFRS (loss) before taxes (81.7) (266.2) -15.2 Income tax expense 0.4 23.8 IFRS net (loss)
Slide 19: Capital Management
Capital Management Cash and capital Cash and adjusted tangible equity1 (in CHFm) Cash and capital • CHF 36m utilised of the CHF 100m facility from Rock Investments SAS • Adjusted tangible equity down year-on-year, mainly driven by losses recognised • Ensuring allocation of capital is optimised acros
Slide 20: Disclaimer: Important legal information
Disclaimer Important legal information The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liabil