Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (October 2019)
28 slides from Cembra Money Bank's investor presentation, October 2019
Slide 1: Cembra is evolving
Cembra is evolving A leading player in consumer finance and cards Investor presentation October 2019 Page Cembra Money Bank
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Outlook Appendix Page 2 Investor presentation October 2019 Cembra Money Bank
Slide 3: Cembra at a glance
Cembra at a glance Cembra at a glance A leading player in consumer finance and cards Who we are Key figures1 2% ■ Independent consumer finance specialist exclusively Revenues (CHF) operating in Switzerland Personal loans Auto 37% 39% H1 19: ■ Serving around 1 million customers through diversified Ca
Slide 4: Strong market positions
Cembra at a glance Strong market positions Serving ~ 1 million customers in Switzerland Personal loans: 45% market share Auto business: 24% market share Credit cards: 13% market share Captives Cembra • AMAG Leasing Independent Cembra (45% incl. • Bank-now (13%) • BMW cashgate) 2019 • FCA Capital 201
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 H1 2019 In line with Swiss Asset growth GDP growth 2.1% -0.3% 0.9% 12.0% 5.4% 4.5% Organic: 4.0% ROE target Profitability >15% 17.0% 17.7% 17.4% 16.7% 16.9% 17.1% Tier 1 capital Ca
Slide 6: Cembra is evolving
Cembra at a glance Cembra is evolving Continued growth in cards and new businesses expected 2018 pro forma 2010 2014 2018 incl. cashgate Aspiration 2% 1% Business mix 8% in % of net revenues 22% 23% 37% 31% Personal loans 39% 44% Auto 58% 69% 20% Cards Other 22% 24% Fee income 21% 21% 30% 28% in % o
Slide 7: 2019 highlights
Cembra at a glance 2019 highlights1 Investing in growth, and acquisition of cashgate Investing in growth Acquisition of cashgate ■ Credit cards growth (+11% yoy by June 2019) ■ Expansion in Personal loans and Auto through • Continuing growth with all acquisition of cashgate on 2 September 2019 partn
Slide 8: Cembra & cashgate
Cembra at a glance Cembra & cashgate Fast integration using cashgate’s skills and systems Consolidate branch network Integrate businesses by 2020 Commercial consolidation 2019 2020 Auto loans Q3 Q4 Q1 Q2 Q3 Q4 & leases Business Integration Personal Online brand: IT Integration 16 Cembra branches loa
Slide 9: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Outlook Appendix Page 9 Investor presentation October 2019 Cembra Money Bank
Slide 10: H1 2019 performance
H1 2019 results H1 2019 performance Good momentum in auto and continued growth in cards Highlights Net financing receivables Return on equity Target for assets growth: in line with Target ROE: >15% ■ Positive business performance Swiss GDP growth. In CHF m +4% with net income CHF 78.6m ■ +5% net rev
Slide 11: H1 2019 products and markets
H1 2019 results H1 2019 products and markets Personal loans & auto in line with market, cards outperforming Personal loans Auto loans and leases Credit cards Consumer loans market, in CHF bn New car registrations, in 1,000 cars Transaction volumes, in CHF bn (first six months of year) (first four mo
Slide 12: H1 2019 P&L
H1 2019 results H1 2019 P&L Income statement H1 2019 H1 2018 % Comments In CHF m Interest income 165.8 162.2 2 1 Higher interest income is in line with growth of Interest expense -10.7 -10.1 6 financing receivables; higher income in credit Net interest income 1 155.1 152.1 2 cards, partly offset by
Slide 13: H1 2019 Net revenues by source
H1 2019 results H1 2019 Net revenues by source +5% growth in H1 2019 In CHF m Revenue by source Personal loans Auto lease and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +5% +1% +4% +10% 222.6 1,913 2,062 1,036 213.0 1,885 1,974 940 67.6 60.9 31.1
Slide 14: H1 2019 Operating expenses
H1 2019 results H1 2019 Operating expenses Income statement H1 2019 H1 2018 % Comments In CHF m Compensation and benefits 1 56.9 52.8 8 1 10% year-on-year increase in FTE for organic growth and business expansion Professional services 2 8.8 7.4 19 Marketing 3 4.7 4.4 7 2 Driven by strategic initiati
Slide 15: H1 2019 Balance sheet
H1 2019 results H1 2019 Balance sheet Assets 30.06.19 31.12.18 % Comments In CHF m Cash and equivalents 1 414 499 -17 1 Cash decreased due to business growth and dividend payment in April 2019 Net financing receivables 2 5,023 4,807 4 Personal loans 1,913 1,885 1 2 Net financing receivables were up
Slide 16: Funding
H1 2019 results & refinancing of cashgate Funding Diversified funding. Successful refinancing of cashgate. Funding mix (30 June 2019) In CHF m1 4,504 4,329 4,052 Senior • Eight issuances (CHF 50 – 200m) 1,101 unsecured • WA2 remaining term 4.0 yrs/avg. rate 0.49%4 1,102 926 ABS • Two AAA-rated issua
Slide 17: Provision for losses
H1 2019 results Provision for losses Stable loss performance Provision for losses 30+ days past due/NPL In CHF m 4% Reported 3% 30+ days past due 2.0% 2.0% 1.9% 1.9% 2.0% Adjusted for one-off¹ 2% Non-performing loans (NPL)³ 1% 0.5% 0.4% 0.4% 0.5% 0.6% 21.7 23.9 22.0 0% 20.8 21.1 19.2 Jun'15 Jun'16 J
Slide 18: Capital management
H1 2019 results & Capital management Capital management Disciplined use of capital Capital position Dividends Tier 1 capital ratio as % CHF per share extraordinary dividend from excess capital 4.45 22% 20.6% 19.7% 19.8% 20.0% 3.55 3.75 20% 19.2% 19.2% 18.8% 3.35 3.10 18% 2.85 18% 18% 18% 18% 18% 18%
Slide 19: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Outlook Appendix Page 19 Investor presentation October 2019 Cembra Money Bank
Slide 20: Outlook and guidance
Outlook Outlook and guidance 2019 outlook and mid-term aspiration confirmed 2019 Outlook Aspiration 2020 and beyond2 ■ Cembra pre-transaction on track to deliver 1 ROE target > 15% on previous guidance for 2019 (no change) • Moderate revenue growth • Stable loss performance 2 Tier 1 capital ratio ta
Slide 21: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Outlook Appendix Page 21 Investor presentation October 2019 Cembra Money Bank
Slide 22: 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 products for retail Auto ABS Swiss FNAC cards transaction E. Uldry & Cie” in Fribourg Migros partnership and institutions in CH Exchang
Slide 23: 2018 pro forma key financials
Appendix 2018 pro forma key financials cashgate an established player in personal loans & auto About cashgate AG 2018 pro forma key figures FY 2018 FY 2018, US GAAP, CHF m and aligned with Cembra financial state- ment presentation and accounting reserving/write off standards ■ Top 5 player in the pe
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 H1 US-GAAP 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net revenues (CHF m) 349 338 356 355 379 389 394 396 439 223 Net income (CHF m) 129 131 133 133 140 145 144 145 154 79 Cost/income ratio (%) 47.01 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 46.5 Net fin rec
Slide 26: The Cembra share
Appendix The Cembra share Shareholder structure: 98% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, in % Own shares Others 2% ~9,500 registered UK 8% 15% private shareholders 8% EU excl UK 10% 54% Switzerland 20% 83% US incl. CDN ~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 21 February 2020 FY 2019 results 19 March 2020 Publication of Annual Report 2019 16 April 2020 Annual General Meeting 2020 Roadshows and conferences 28-29 October 2019 Roadshow Nordics 6 November 2019 ZKB
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