Cembra Money Bank Ag · SIX:CMBN

Cembra Money Bank — Investor Presentation (April 2018)

17 slides from Cembra Money Bank's investor presentation, April 2018

  1. Slide 1: Investor Presentation

    Investor Presentation April 2018 Page Cembra Money Bank

  2. Slide 2: Cautionary statement regarding forward-looking statements

    Cautionary statement regarding forward- looking statements This presentation by Cembra Money Bank AG (“the Bank”) includes forward-looking statements that reflect the Bank‘s intentions, beliefs or current expectations and projections about the Bank’s future results of operations, financial condition

  3. Slide 3: Our history

    Our history  A leading player in consumer finance in Switzerland; founded in 1912  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 transaction E. Uldry & Cie’

  4. Slide 4: Our value proposition

    Our value proposition  Independent consumer finance specialist  Diversified distribution through own branches, independent credit agents, car dealers and retailers combined with a strong online presence  Premium price supported by superior personalized and flexible service in personal loans, auto

  5. Slide 5: A leading player in consumer finance

    A leading player in consumer finance Personal loans Auto leases & loans Credit cards Captives Independent Cembra • Bank-now • AMAG Leasing • Bank-now • Swisscard (CS) Money Cembra • Cashgate • BMW 2017 • Cashgate Bank • Viseca (Aduno) 2017 Money • FCA Capital • Cembra (15%) 12.2% 6.6mn Personal loan

  6. Slide 6: Performance highlights

    Performance highlights IPO targets (Oct. 2013) 2013 2014 2015 2016 2017 Net customer loan growth to Asset growth be moderate and in line (0.4)% 2.1% (0.3)% 0.9% 12.0% with Swiss GDP growth 4.0% organic Profitability RoE target of at least 15% 14.1% 17.0% 17.7% 17.4% 16.7% Target Tier 1 capital ratio

  7. Slide 7: Strategy

    Strategy  Defend the core   Gain size through Build the future external growth & business diversify  Asset growth through  3 year IT investment plan  M&A transactions strategic initiatives  Simplify customer  Swissbilling  Invoice Finance onboarding  EFL Autoleasing  Cross sell / upsell 

  8. Slide 8: Executing on the Strategy

    Executing on the Strategy  Defend the core   Gain size through Build the future external growth & business diversify  4% organic asset growth  Executing on digital agenda  Swissbilling acquisition  Renewed Migros contract - CRM investment  EFL acquisition for 5 years - Modernizing front-end

  9. Slide 9: Key financials 2017

    Key financials 2017 P&L (in CHF mn) 2017 2016 V% Environment Interest income 308.3 324.3 (5)  Consumer confidence improving – consumer loan market Interest expense (24.7) (26.5) (7) recovering  First 18 months with new interest rate caps (10% and 12%) Net interest income 283.6 297.7 (5)  Domestic

  10. Slide 10: Diversified funding

    Diversified funding Diversified funding sources Funding programs (in CHF mn) Senior  Six issuances of between 100mn to 200mn 4’052 unsecured with coupons of 0.18% to 1.25% Capital market – 35% 926  A– credit rating from S&P with outlook «stable» 3’184 Pre-IPO 400 ABS (Auto)  Two issuances of CHF

  11. Slide 11: Stable asset quality

    Stable asset quality Delinquencies Delinquencies¹ Write-Off Performance by Year of Origination2 4.0% 6.0% 5.0% 2009 3.0% 2.4% 2.4% 2010 30+ days past due 4.0% 2.2% 2011 1.9% 2.0% 1.8% 1.8% 1.8% 1.8% 1.8% 3.0% 2012 2.0% 2013 2.0% Non-performing loans (NPL)¹ 2014 1.0% 0.8%0.7% 0.6% 0.5% 0.5% 0.4% 0.4%

  12. Slide 12: Strong capital base and attractive dividend policy

    Strong capital base and attractive dividend policy CET1 capital (in CHF mn) Dividend per share since IPO 20.0% 19.2% CET1 capital ratio 790 1.00 Extraordinary 753 dividend 49 Excess capital 18% minimum target 3.35 3.45 3.55 Ordinary 11.2% 2.85 3.10 dividend regulatory requirement 31-12-16 31-12-17 2

  13. Slide 13: Stable outlook and guidance for 2018

    Stable outlook and guidance for 2018 Medium-term targets 2017 Outlook for 2018 Revenues Net customer loan growth to 12.0%  Additional revenues from credit cards growth and Asset growth be moderate and in line Organic: with Swiss GDP growth acquisitions expected to be offset by lower interest income

  14. Slide 14: Appendix

    Appendix Page 14 Cembra Money Bank

  15. Slide 15: Income statement (in CHF mn)

    P&L Income statement (in CHF mn) 2017 2016 V% Comments Interest income 308.3 324.3 (5) 1  Lower interest income driven by the reduction in APR Interest expense (24.7) (26.5) (7) following the introduction of the rate caps – the vast Net interest income 1 283.6 297.7 (5) majority of the lending book

  16. Slide 16: Operating expenses

    Operating expenses Income statement (in CHF mn) 2017 2016 V% Comments Compensation and benefits 1 99.9 100.4 0 1 Lower pension costs (CHF 1.5mn) offset by higher headcount following the EFL & Swissbilling acquisitions Professional services 2 11.4 9.0 27 2 Driven by business development and continued

  17. Slide 17: Balance sheet

    Balance sheet Assets (in CHF mn) 31-12-17 31-12-16 V% Comments Cash and equivalents 1 418 669 (37) 1  Growth in receivables partly financed via cash Net financing receivables 2 4,562 4,073 12  Fewer upcoming debt maturities in 2018 Personal loans 1,782 1,720 4 Auto leases and loans 1,942 1,641 18

Cembra Money Bank — Investor Presentation (April 2018) on 6ix