VZ Holding AG · SIX:VZN

VZ — FY2018 Earnings Presentation

26 slides from VZ's earnings presentation, Mar 1, 2019

  1. Slide 1: Results and outlook 2018

    VZ Group VZ Holding Ltd Gotthardstrasse 6 8002 Zürich 2018 Results and outlook Telefon +41 44 207 27 27 Fax +41 44 207 27 28 www.vzch.com www.vzfinanzportal.com Appendix: company overview Zurich, 1 March 2019

  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 4. Appendix © VZ Holding Ltd 2

  4. Slide 4: Summary 2018

    Summary 2018 Business development Financials • Unchanged inflow of new clients seeking advice • Top line +9.2% to CHF 284.2 million on retirement and estate planning issues • Operating expenses +5.2% to CHF 157.0 million • Increasing demand for platform offerings: more (adjusted1 +9.0% yoy) consulti

  5. Slide 5: Revenues: continued path of growth

    Revenues: continued path of growth in CHF millions1 +9.2% +10.3% 284.2 +4.2% +15.0% 260.2 23.4 235.9 22.2 +15.1% 226.4 19.3 60.9 • Consulting fees2 +5.4% yoy 196.9 18.5 55.5 171.1 16.5 56.8 6.5 • Banking income from commissions and trading 60.2 4.2 20.4 15.7 18.9 activities3 +9.7% yoy 48.5 2.3 17.8

  6. Slide 6: Banking income: random & structurally under pressure

    Banking income: random & structurally under pressure in CHF millions1 60.2 60.9 56.8 5.2 5.1 55.5 5.1 48.5 6.7 • Interest business: 41.4 5.5 20.8 increased impact of negative interest rates and 18.5 28.6 5.3 17.0 short duration of financial assets 13.0 • Trading result: 11.5 random development, main

  7. Slide 7: Net profit: growth affected by tax provision in 2017

    Net profit: growth affected by tax provision in 2017 in CHF millions1 • Net profit: +13.1% (adjusted2 +8.1%) +13.1% +3.2% –0.2% 98.2 • Operating margin (EBITDA) at 44.8% (2017: 42.7%, +19.6% 84.3 86.8 adjusted2 44.7%, long-term target: 45%) 84.1 +17.3%  Revenues +9.2% 70.4  Operating expenses +5.2

  8. Slide 8: Financial Consulting: unchanged performance

    Financial Consulting: unchanged performance Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF millions in CHF millions 2’566 160 22.8 21.7 2’229 2’312 148 136 18.8 2’016 125 18.1 1’907 16.1 1'263 112 12.4 11.2 1'105 1'211 9.8 1'002 1'011 9.5 8.7 10.5 1

  9. Slide 9: Wealth Management: AuM +5.9%

    Wealth Management: AuM +5.9% in CHF millions 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 yoy AuM total 14’549 16’495 18’415 21’775 23’056 +5.9% • PM mandates 9’319 10’277 11’116 13’136 13’641 +3.8% Share of total AuM 64.1% 62.3% 60.4% 60.3% 59.2% • Other1 5’230 6’218 7’299 8’639 9’415 +9.0% Share o

  10. Slide 10: Platform usage among WM clients

    Platform usage among WM clients CH clients only 1 platform per client 3+ platforms per client Share of WM clients who use 1 platform only, Share of WM clients who use 3+ platforms, in % of WM clients in % of WM clients 67.6% 63.9% 60.8% 15.0% 12.1% 9.6% 31.12.16 31.12.17 31.12.18 31.12.16 31.12.17 3

  11. Slide 11: Branch offices

    Branch offices Switzerland Germany #: 30 #: 4 branch office satellite new branch office in 2018/19 © VZ Holding Ltd 10

  12. Slide 12: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 11

  13. Slide 13: Income statements (1)

    Income statements (1) in CHF millions1 2015 2016 2017 2018 yoy Consulting fees 18.1 18.8 21.7 22.8 +5.1% Management fees: on AuM 130.7 139.7 159.4 173.0 +8.5% other 17.0 17.8 18.9 20.4 +7.9% Banking income2 60.2 56.8 55.5 60.9 +9.7% Net earned premiums - 2.3 4.2 6.5 +54.8% Other operating revenues3

  14. Slide 14: Income statements (2)

    Income statements (2) in CHF millions1 2015 2016 2017 2018 yoy EBITDA 106.6 107.2 111.0 127.2 +14.6% Depreciation and amortisation 5.9 6.8 8.4 10.4 +23.8% EBIT 100.7 100.4 102.6 116.8 +13.8% Net finance income ‒0.2 0.0 0.0 –0.1 Profit before income tax 100.5 100.4 102.6 116.7 +13.7% Income tax 16.2

  15. Slide 15: Personnel expenses

    Personnel expenses in CHF millions1 140 40.7% 39.7% 40.0% 39.8% 39.4% 41.0 38.3% 120 113.1 104.0 36.0 • +8.8% yoy 100 93.7 31.0 86.8 • Personnel development 77.6 80 69.6 26.0 31.12.16 31.12.17 31.12.18 21.0 60 16.0 FTE2 771.5 840.4 897.5 40 • 1H18: +32.3 FTE 11.0 2H18: +24.8 FTE 20 6.0 • Personnel e

  16. Slide 16: Other operating expenses

    Other operating expenses in CHF millions1 16.3% 14.5% 14.2% 14.6% 14.2% 14.1% • Other operating expense ratio stable at around 45 42.4 13% to 15% 40.1 40 8.7 • Other operating expenses –5.4% yoy 35 33.0 33.4 8.8 (adjusted for VAT provision in 2017 +7.8% yoy) 30 28.1 7.6 8.2 8.1  Office space +1.1%

  17. Slide 17: EBITDA and margin

    EBITDA and margin in CHF millions1 160 46.4% 47.1% 44.9% 45.4% 44.8% 42.7% 46.0 140 127.2 41.0 120 107.2 111.0 36.0 106.6 100 91.3 31.0 • EBITDA +14.6% yoy (adjusted for VAT provision 76.7 in 2017 +9.5% yoy) 80 26.0 21.0 60 • Margin long-term expectation 45% unchanged 16.0 40 • No leverage expected

  18. Slide 18: Balance sheets

    Balance sheets in CHF millions1 31.12.17 31.12.18 Cash & cash equivalents 695.5 724.3 Short-term investments 215.5 276.5 Swiss prime residential mortgages 1’247.3 1’508.6 • Balance sheet total on the reporting date is coincidental; it does not reflect the CHF bonds, marketable securities 372.3 416.3

  19. Slide 19: Equity and payout ratios

    Equity and payout ratios Payout ratios 2016 2017 2018 Equity ratios 31.12.16 31.12.17 31.12.18 in CHF millions Net profit 84.1 86.8 98.2 Total equity 420.1 459.5 512.3 in CHF millions Retained earnings 50.6 52.3 59.4 Dividend total 33.5 34.5 38.8 1,2 Equity ratio3 17.3% 17.0% 16.6% 4 Dividend per sh

  20. Slide 20: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 19

  21. Slide 21: Outlook

    Outlook Business development • Focus on new client inflow, consulting capacity, client conversion and platform usage • Extend branch network in Switzerland with Burgdorf and Brig • Further develop VZ Finanzportal with additional functionalities, including professional e-trading features • Broaden of

  22. Slide 22: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 21

  23. Slide 23: What does VZ do?

    What does VZ do? Target clients… … seek expert advice… … and solid implementation • Retirement planning (employees)/  Portfolio management succession planning (entrepreneurs)  Discretionary mandates 50+  Advisory mandates • Estate planning • Investment advice  Banking services • Homeowners  Cus

  24. Slide 24: VZ Finanzportal

    VZ Finanzportal © VZ Holding Ltd 23

  25. Slide 25: Strong brand recognition

    Strong brand recognition Brand associated with expertise, quality and independence Books Online/Newsletters Seminars Periodical Media coverage © VZ Holding Ltd 24

  26. Slide 26: Long track record of organic growth and profitability

    Long track record of organic growth and profitability in CHF millions Operating revenues1 Net profit1 300 300 250 250 200 200 150 150 100 100 50 50 0 0 93 95 97 99 01 03 05 07 09 11 13 15 17 93 95 97 99 01 03 05 07 09 11 13 15 17 1 1993-2003 according to SWISS GAAP; 2004-2018 according to IFRS © VZ

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