Slide 1: Evli Bank Plc Financial Statements bulletin 2016
Evli Bank Plc Financial Statements bulletin 2016 Maunu Lehtimäki, CEO Juho Mikola, CFO 24.1.2017
Slide 2: Agenda
Agenda 1 Evli in brief 2 Highlights of 2016 3 Business Areas 4 Financial figures 5 Strategy & Outlook 1
Slide 3: Evli in Brief
Evli in Brief Business Areas Customers Wealth Management Private persons Markets Institutions Corporate Finance Companies WHAT TO WE DO WHO People Finance Over 200 investment specialist EUR 10.6 billion 77% with a university degree assets under management EUR 60.0 million revenue Committed personnel
Slide 4: Highlights of 2016
Highlights of 2016 Good performance in wealth management - Assets under management all time high EUR 10.6 billion - Net subscription to Evli’s funds 2nd largest in Finland - Evli Fund management company Finland’s 4th largest Awards - Best institutional asset manager in Finland by both TNS Sifo Prosp
Slide 5: Evli's key figures
Evli’s key figures Operating profit (EURm) & Revenue (EURm) Return on Equity % (ROE) profit margin 13.3 64.2 20.2% 11.1 9.8 21% 59.7 60.0 15.2% 18% 14.3% 16% 11.5% 6.7 12% 55.5 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 4
Slide 6: Market development 2016
Market development 2016 2.43 % Yield on the 10-year US government bond 0.21 % Yield on the 10-year German government bond 1.05 Dollars to the euro +11.0% 3.5% +13.3% +15.3% MSCI World daily MSCI Europe OMX Helsinki MSCI Emerging TR gross index TR Gross CAP_GI markets TR Gross 5
Slide 7: Business Areas
Business Areas EVLI
Slide 8: Strong performance in Wealth Management
Strong performance in Wealth Management Revenue split 2016 (EURm) Group Operations* 8% Corporate Finance 8% Revenue Markets 13% 60.0 EURm Wealth Management 71% 7
Slide 9: Business area profitability
Business area profitability Net revenue Profit before allocations 42,5 17,6 Wealth Management Wealth Management 42,8 18,9 8,0 -0,1 Capital Markets Capital Markets 11,9 2,8 4,8 1,2 Corporate Finance Corporate Finance 5,5 1,2 Group operations and 4,8 Group operations and -7,6 eliminations 4,0 eliminat
Slide 10: Wealth Management – Highlights 2016
Wealth Management – Highlights 2016 Increase in Assets Under 2016 2015 Change % Management and number of clients Net revenue, M€ 42.5 42.8 -1% Ranked as Finland’s best asset Operating profit/loss before Group manager by institutional clients allocations and bonuses, M€ 19.1 20.6 -7% second time
Slide 11: Composition of Assets under management
Composition of Assets under management 10,6 0,5 9,4 1,4 0,4 Growth, p.a. (2012 to 2016) 1,4 7,4 6,9 1,0 Direct investments in Evli 6,0 1,1 4,3 18% 3,4 funds 1,1 3,1 2,8 2,2 Discretionary asset 4,4 13% 4,1 management 3,0 3,2 2,7 2012 2013 2014 2015 2016 Discretionary asset management NHC Direct inves
Slide 12: Development of assets in Evli's funds
Development of assets in Evli’s funds* Assets in mutual funds, 2012–2016 (EUR billion) Growth, p.a. +18% 6.5 1,1 +23% 5.1 4.4 0,8 4.1 0,9 3.4 0,7 0,5 5,4 +17% 4,3 3,4 3,5 2,9 2012 2013 2014 2015 2016 International clients Finnish clients *Note: Wealth Manager fund included in numbers. 11
Slide 13: Markets – Highlights 2016
Markets – Highlights 2016 Weaker performance than in 2015 2016 2015 Change % A new company, Evli Investment Net revenue, M€ 8.0 11.9 -33% Solutions Oy, to boost the Group’s Operating profit/loss before Group product sales allocations and bonuses, M€ 0.4 3.3 -89% A new company, Evli Research Op
Slide 14: Brokerage revenues
Brokerage revenues 41% 39% 44% 42% 43% 45% 45% 45% 45% 48% 50% 50% 49% 56% 56% 54% 54% 55% 58% 60% 59% 61% 56% 58% 57% 55% 55% 55% 55% 52% 50% 50% 51% 44% 44% 46% 46% 45% 42% 40% Non-equity broking Equity broking 13
Slide 15: Corporate Finance – Highlights 2016
Corporate Finance – Highlights 2016 Advisor in a total of 18 executed 2016 2015 Change % transactions. Net revenue, M€ 4.8 5.5 -14% Example of transactions: Operating profit/loss before Group - XANO’s acquisition of Jorgensen allocations and bonuses, M€ 1.2 1.4 -12% - Obducat’s AB’s rights issue
Slide 16: Evli Corporate Finance – chosen references
Evli Corporate Finance – chosen references July 2016 July 2016 June 2016 June 2016 June 2016 CapMan and other Has successfully completed has successfully has successfully rights issue shareholders have the acquisition of completed a convertible completed a directed agreed to sell EUR 14 million bond
Slide 17: Financial figures
Financial figures EVLI
Slide 18: Profit and loss statement
Profit and loss statement EURm 2016 2015 2014 2013 2012 Net interest 1.6 1.4 1.0 0.5 3.1 Net commission 54.3 57.2 53.1 49.5 43.3 Net income from securities trading and FX 4.0 5.4 5.2 5.2 1.2 Other operating income 0.1 0.2 0.4 0.4 0.7 NET REVENUE 60.0 64.2 59.7 55.5 48.3 Administrative expenses Perso
Slide 19: Balance sheet
Balance sheet ASSETS, EURm 2016 2015 LIABILITIES, EURm 2016 2015 Liquid assets 203.1 128.0 Debt securities eligible for refinancing Liabilities to credit institutions and 39.1 38.5 with central banks central banks 5.5 5.5 Liabilities to the public and public sector Claims on credit institutions 66.0
Slide 20: Key ratios and performance indicators
Key ratios and performance indicators Strategic KPI 2016 2015 2014 2013 Return on Equity 14.3% (Target 15%) Return on equity-% (ROE) 14.3% 20.2% 15.2% 11.5% Cost-income ratio 0.82 0.79 0.84 0.88 Core BIS capital adequacy, % 15.3% 19.2% 15.2% 13.9% Reccuring revenue to operational costs 94% Earnings/
Slide 21: Strategy & Outlook
Strategy & Outlook EVLI
Slide 22: Cornerstones of Evli strategy – Simply Unique
Cornerstones of Evli strategy – Simply Unique EVLI’s core strengths and uniqueness are built around: 1) Very 2) Product 3) Strong strong customer excellence, operational SUPPORTED experience AND based on BY process (including offering, innovative spearhead efficiency service and ”institutional inves
Slide 23: Outlook for 2017
Outlook for 2017 The stable performance of Evli’s Wealth Management unit is expected to continue. - Growth in international sales and alternative investments - Organizational changes enables increased domestic sales The proportion of recurring revenue to operating expenses is expected to exceed
Slide 24: New organizational structure
New organizational structure External development trends together with evolving client needs and changing regulation supports a shift in Evli’s business and organizational model The aim is to better correspond to these evolving trends Enhance customer centricity even further by reflecting it a
Slide 25: THANK YOU!
THANK YOU! Upcoming events in the investor calendar: Annual report & Financial review for 2016: Week 7 Annual General Meeting: 13 March 2017 Interim report 1-3/2017 and Investor presentation: 24 April 2017 24
Slide 26: Contact information
Contact information Evli Bank Plc Investor contacts Aleksanterinkatu 19, 4th floor Juho Mikola, CFO P.O. Box 1081 juho.mikola@evli.com 00101 Helsinki Tel. +358 9 4766 9871 www.evli.com Mikaela Herrala, IR Manager mikaela.herrala@evli.com Tel. +358 9 4766 9823 Evli - Sijoittajan Pankki Evli Bank Plc
Slide 27: Appendicies
Appendicies EVLI
Slide 28: Executive Group
Executive Group Maunu Lehtimäki, born 1967 Mari Etholén, born 1973 Panu Jousimies, born 1969 Lea Keinänen, born 1966 Chief Executive Officer Head of HR and Legal Affairs Head of Capital Markets Head of Wealth Management, M.Sc. (Econ.) LLB M.Sc. (Econ.) Funds, deputy to the CEO Joined Evli Bank Plc i
Slide 29: Board of Directors
Board of Directors Henrik Andersin, born 1960 Robert Ingman, born 1961 Harri-Pekka Kaukonen, born 1963 Mikael Lilius, born 1949 Chairman of the Board of Directors Member of the Board of Directors Vice-Chairman of the Board Member of the Board of Directors Member of the Board of Directors Member of t