VZ Holding AG · SIX:VZN

VZ — FY2016 Earnings Presentation

22 slides from VZ's earnings presentation, Mar 6, 2017

  1. Slide 1: 2016 Results and Outlook

    VZ Group VZ Holding Ltd Beethovenstrasse 24 8002 Zürich 2016 Results and Outlook Telefon +41 44 207 27 27 Fax +41 44 207 27 28 www.vzch.com www.vzfinanzportal.com Zurich, 6 March 2017

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements This presentation contains forward-looking statements that involve known and unknown risks, uncertainties or other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by

  3. Slide 3: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook © VZ Holding Ltd 2

  4. Slide 4: Summary 2016

    Summary 2016 Business development Financials • Growth picks up in H2 • Top line +4.2% to CHF 235.9 million − Clients are still reluctant • Operating expenses +7.4% to CHF 128.7 million − Financial market volatility remains high − Personnel expenses +7.9% − Unusually high revenues in 2015 / base effe

  5. Slide 5: MeinFinanzportal: Online since August 2016

    MeinFinanzportal: Online since 1 August 2016 © VZ Holding Ltd 4

  6. Slide 6: Revenues: Full-year comparison

    Revenues: Full-year comparison in CHF million1 +4.2% +15.0% 235.9 226.4 +15.1% 19.3 +11.7% 18.5 196.9 • Consulting revenues2 +3.8% yoy 29.2 +6.8% 16.5 30.3 171.1 2.3 17.8 • Banking revenues –3.5% yoy 153.2 15.7 24.9 16.9 143.5 16.3 21.6 15.9 15.1 • Net earned premiums 21.5 13.9 20.9 11.9 12.7 • Othe

  7. Slide 7: Revenues: Half-year comparison

    Revenues: Half-year comparison in CHF million1 Total revenues − 1H16: +1.2% yoy − 2H16: +7.1% yoy 122.1 112.4 114.0 113.8 10.0 Consulting revenues2 9.7 9.2 102.1 8.8 16.0 − 1H16: +4.8% yoy 94.8 13.2 86.6 7.5 9.0 15.3 15.0 0.8 8.9 1.5 − 2H16: +2.9% yoy 84.5 13.2 8.5 8.5 9.0 7.7 8.0 11.7 8.1 Banking r

  8. Slide 8: Net profit: slight upturn in H2

    Net profit: slight upturn in H2 Full years in CHF million 84.3 84.1 70.4 60.0 51.0 54.3 • Net profit –0.2% − 1H16: –5.8% yoy − 2H16: +5.5% yoy 2011 2012 2013 2014 2015 2016 • Net profit margin 35.7% vs. 37.3% Half years in 2015 (long-term target: 35%) in CHF million 42.9 41.4 43.7 40.4 37.5 32.9 29.

  9. Slide 9: Financial Consulting: NNM H2 equals H1

    Financial Consulting: NNM H2 equals H1 Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF million in CHF million 2’229 138 2’016 125 18.1 18.8 1’907 16.1 1’736 112 15.7 15.2 102 1'105 90 9.8 1’327 1'011 9.5 1'002 8.2 8.7 896 7.7 730 1’124 1’005 7.5 7.5

  10. Slide 10: Wealth Management: AuM +11.6%

    Wealth Management: AuM +11.6% in CHF million 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 yoy AuM total 10’082 12’114 14’549 16’495 18’415 +11.6% • PM mandates 6’531 7’813 9’319 10’277 11’116 +8.2% Share of total AuM 64.8% 64.5% 64.1% 62.3% 60.4% • Others1 3’551 4’301 5’230 6’218 7’299 +17.4% Share

  11. Slide 11: Branch offices

    Branch offices Switzerland Germany #: 26 #: 4 Zurich branch office satellite new branch office in 2H16 © VZ Holding Ltd 10

  12. Slide 12: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook © VZ Holding Ltd 11

  13. Slide 13: Income statements (1)

    Income statements (1) in CHF million1 2013 2014 2015 2016 yoy Consulting fees 15.2 16.1 18.1 18.8 +3.8% Management fees: on AuM 119.9 139.6 160.7 167.3 +4.1% others 13.9 15.9 16.9 17.8 +5.2% Banking revenues 21.6 24.9 30.3 29.2 –3.5% Net earned premiums - - - 2.3 - Other operating revenues 0.5 0.4 0

  14. Slide 14: Income statements (2)

    Income statements (2) in CHF million1 2013 2014 2015 2016 yoy EBITDA 76.7 91.3 106.5 107.2 +0.6% Depreciation and amortisation 4.0 5.1 5.8 6.8 +16.3% EBIT 72.7 86.2 100.7 100.4 –0.3% Net finance income 0.2 0.1 ‒0.2 0.0 - Profit before income tax 72.9 86.3 100.5 100.4 –0.1% Income tax 12.9 15.9 16.2

  15. Slide 15: Personnel expenses

    Personnel expenses in CHF million1 60 40.5% 40.8% 40.4% 40.9% 38.5% 38.1% 38.6% 38.7% 41.0 • +7.9% yoy 50 46.5 47.2 36.0 42.8 44.0 • Personnel development 39.3 31.0 40 38.3 34.3 35.3 31.12.14 31.12.15 31.12.16 26.0 30 21.0 HC2 708 812 892 FTE2 613.3 702.9 771.5 16.0 20 • 1H16: +15.4 FTE 11.0 2H16: +

  16. Slide 16: Other operating expenses

    Other operating expenses in CHF million1 15.0% 15.3% 15.1% 14.5% 14.4% 14.5% 15.0 20 13.5% 13.8% 18.4 17.5 16.5 13.0 • +5.9% yoy 15.5 14.2 − adjusted for last year’s provision: +12.8% 15 13.8 11.0 12.3 12.5 − adjusted: 1H16 +6.5% yoy 9.0 2H16 +19.0% yoy 10 − claims included in other operating expens

  17. Slide 17: EBITDA and margin

    EBITDA and margin in CHF million1 48.0% 48.1% 70 44.9% 44.8% 44.6% 46.0% 44.6% 46.2% 46.0 60 54.1 56.4 41.0 52.4 50.8 49.0 36.0 50 42.3 31.0 • EBITDA +0.6% yoy 38.8 40 37.9 − 1H16: –6.1% yoy 26.0 − 2H16: +7.5% yoy 30 21.0 • Margin long-term expectation 45% 16.0 20 11.0 10 6.0 0 1.0 1H13 2H13 1H14 2H

  18. Slide 18: Profit before income taxes and C/I ratio

    Profit before income taxes and C/I ratio in CHF million1 57.4% 57.6% 58.0% 58.2% 56.8% 61.0 54.5% 54.5% 55.6% 60 52.8 51.0 51.0 49.5 50 46.5 47.6 39.8 41.0 40 36.0 36.8 31.0 • Long-term target 56% 30 21.0 20 11.0 10 0 1.0 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Profit before income taxes Cost/income

  19. Slide 19: Balance sheets

    Balance sheets in CHF million1 31.12.15 31.12.16 Cash & cash equivalents 493.7 758.3 Short-term investments 197.0 157.4 Swiss prime residential mortgages 892.1 1’110.8 • Financial investments: − Low risk profile CHF bonds, marketable securities 353.5 324.6 − Average time to maturity 1.4 years as at

  20. Slide 20: Equity and payout ratios

    Equity and payout ratios Payout ratios 2014 2015 2016 Equity ratios 31.12.14 31.12.15 31.12.16 in CHF million Net profit 70.4 84.3 84.1 Total equity 318.9 377.2 420.1 in CHF million Retained earnings 42.8 50.9 50.6 Dividend total 27.6 33.4 33.5 1,2 Equity ratio3 16.5% 18.8% 17.3% Dividend per share

  21. Slide 21: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook © VZ Holding Ltd 20

  22. Slide 22: Outlook

    Outlook Future growth in two equally important dimensions: • New client inflow − Focus on 50+, wealthy, on-shore − Unrivaled expertise in consulting retirement and estate planning • Develop existing client base along the five service platforms: portfolio management, banking services, mortgages, 2nd

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