Efg International Ag · SIX:EFGN
Efg International — FY2020 Earnings Presentation
45 slides from Efg International's earnings presentation, Feb 24, 2021
Slide 1: Full-year 2020 results presentation
EFG International Full-year 2020 results presentation 24 February 2021 Zurich A oot
Slide 2: Important Legal Disclaimer
EFG International E rG Important Legal Disclaimer This document has been prepared by EFG International AG (“EFG”) solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for,
Slide 3: Key highlights
Key highlights Giorgio Pradelli, Chief Executive Officer Full-year 2020 results presentation 24 February 2021 ft Page 3
Slide 4: Strong growth with marked acceleration in profitability
EFG International Strong growth with marked acceleration in profitability Good growth momentum = Strongest net new asset inflows ina decade e bn = Helping clients to navigate challenging markets = Strong clientengagement with enhanced digital capabilities Net new assets = Top tier performance of inv
Slide 5: Positive trajectory in executing 2022 strategic plan
EFG International E rG Positive trajectory in executing 2022 strategic plan 7 Strong operational and financial resilience Uninterrupted high-quality private banking service Safeguarded wellbeing of clients and employees r. Improved liquidity and solid capital position amidst market turmoil Successfu
Slide 6: Financial performance
ErG Financial performance Dimitris Politis, Chief Financial Officer Full-year 2020 results presentation 24 February 2021 Page 6
Slide 7: Presentation of financial performance
EFG International Presentation of financial performance « FY 2020 financialresults include Shaw and Partners, which has been consolidated as of 30 April 2019 » The reconciliation of underlying net profit to IFRS results is included on slide38: The only items excluded from underlying performance are
Slide 8: FY 2020 financial results in perspective
EFG International E rG FY 2020 financial results in perspective Executing on 2022 strategic plan NNA of CHF 8.4 bn, strongest NNA inflow in a decade, annual growth rate of 5.5% = AuMup 3.3% to CHF 158.8 bn, strong NNAinflows and positive market effects offset adverse foreign exchange impacts Busines
Slide 9: Financials summary
EFG International E rG Financials summary a ee <8 Revenue-generating AuM, CHF bn 158.8 153.8 Net new assets, CHF bn 8.4 5.2 Net new asset growth 5.5% 4.0% Operating income, CHF mn 1,130.6 1,170.9 Operating expense, CHF mn 951.5 998.3 Operating profit, CHF mn 179.1 172.6 IFRS net profit, CHF mn 115.3
Slide 10: Financials summary (2H20)
EFG International Financials summary Revenue-generating AuM, CHF bn Net new assets, CHF bn Net new asset growth (annualised) Operating income, CHF mn Operating expense, CHF mn Operating profit, CHF mn IFRS net profit, CHF mn Underlying operating income, CHF mn / excl. Shaw and Partners Underlying op
Slide 11: Solid trends in business development and profitability
EFG International ErG Solid trends in business development and profitability Acceleration of NNAgrowth NNA evolution (in CHF bn) 8.4 (2.1) 2018 2019 2020 Realised significant efficiency gains Evolution of underlying operating expense (in CHF mn) 966.4 OIE 2018 2019 2020 Full-year 2020 results presen
Slide 12: Efficiency materialising in 2H20
EFG International E rG Efficiency materialising in 2H20 2H20 underlying operating profit up 73% vs. 1H20; 2H20 cost-income ratio at 78.2% Underlying operating profit evolution (in CHF mn) Decrease by 9.1 ppts CIR 85.2% 85.2% 87.3% > (78.2% = 2H20 underlying operating profit up 73% vs. 1H20, driven b
Slide 13: IFRS net profit up 22% year on year
EFG International E rG IFRS net profit up 22% year on year Underlying profitability vs. IFRS net profit Reconciliation of underlying net profit (in CHF mn) 14.9 = Increased IFRS net profit by 22% (6.2) year on year = Decline in costs and provisions relating to legacy legal cases, on the back of favo
Slide 14: NNA growth rate of 5.5%
EFG International NNA growth rate of 5.5% Strongest net new asset inflow in a decade Revenue-generating AuM evolution (in CHF bn) 48 84 Ye (7.0) (13) Dec 19 NNA Market FX Other* Dec 20 Full-year 2020 results presentation * Including reclassifications 1 Hiredinthe last 24months rolling 2 Business ini
Slide 15: Business development by region
EFG International Business development by region All regions recorded positive inflows; Continental Europe and UK above target range Revenue-generating AuMs. as%of RoAuM* NNA Growth NNA (excl. loans) CHF 158.8 bn totalAuM (in bps) CHF 8.4 bn (in %) CHF 7.6 bn & Italy Continental Middle East Latin Am
Slide 16: Continued positive trend in mandate penetration
EFG International E rG Continued positive trend in mandate penetration Evolution of advisory, discretionary mandates & funds (as % of AuM, excl. loans) Increasing penetration of advisory, discretionary mandates and funds driven by: — Solid performance of discretionary mandates — High-quality service
Slide 17: CRO performance
EFG International CRO performance CRO hiring momentum Number of CROs CROs approved / 815 772 Shaw and Partners g 2017 2018 2019 Number of newCROs il.ooa 6 Approved 2015 =.2016 = 2017_— 2018 BSI integration Full-year 2020 results presentation ErG = 2020 CRO hiring in line with guidance range (70-100
Slide 18: Quality and sustainability of revenues improved
EFG International E rG Quality and sustainability of revenues improved Underlying operating income of CHF 1,114.6 mn Reacting to market conditions Underlying operatingincome (Underlying RoAuM in bps) (in CHF mn) 4 @ 5 vs. 2019 2019 2019 one- COVID Business 2020 1,142.8 1,114.6 -2% off* impact develo
Slide 19: Significant efficiency gains in 2H20
EFG International E rG Significant efficiency gains in 2H20 Underlying operating expenses down 5.2% year on year with accelerationin 2H20 Underlyingoperating expenses Underlyingoperating expenses (in CHF mn) (in CHF mn) FTEs CIR Underlyingother vs. 2019 operating expenses 975.9 924.7 5% Underlying p
Slide 20: Balance sheet
EFG International Balance sheet Strong and highly liquid Balance sheet Totalassets: Totalliabilities & equity: CHF 40.6 bn CHF 40.6 bn Due tc Fair value Deposits through OCI ” Financial : Financial assets at instruments fairvaluethrough 2.1 P&L liabilities ordinated loans l Equity . * Including fina
Slide 21: Capital position (I)
— E rG Capital position (1) Strong capital position: CET1 ratio of 16.2%, Total capital ratio at 19.9% Total Capital Ratios* Breakdown of RWAs* (in %) (in CHF bn) 6 = Sound capital management and 2041 : solid capital ratios a = Strengthening of regulatory capital 10.1 9.9 base through active capital
Slide 22: Capital position (II)
EFG International E rG Capital position (I!) Substantial available CET1 capital allows for expansion Evolution of CET1 Capital ratio* (in %) Underlying net capital generation Total Capital ma Total Capital 20.1 o | : 0.2 ATI Capital Ratio’ : 13 3.7 Ratio* i CET1 Capital CETI Capital (0.9) : (0.3) (0
Slide 23: Executing the 2022 strategic plan
EFG International As E rG 2p r Te 0 0 By, Sen, Executing tne 2022 strategic plan %h Von [79 2019-2020 2021-2022 ov 3 Operational efficiency SY = Gost Executing remaining synergies Vv management Digital solutions YW Investment for growth, e.g. CRO hiring Vv Dividend payout ratio increase to 50% Vv )
Slide 24: Continued progress towards 2022 targets
EFG International E rG Continued progress towards 2022 targets NNA growth at top end of target range Costs ontrack towardstarget range NNA growth (annualised) Evolutionof underlying CIR (in %) (in %) 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 Active revenue management RoTE back to double-digit level Ev
Slide 25: Outlook and strategic priorities
Er Outlook and strategic priorities Giorgio Pradelli, Chief Executive Officer Full-year 2020 results presentation 24 February 2021
Slide 26: Well positioned for profitable and sustainable growth
EFG International E rG Well positioned for profitable and sustainable growth... 2018-2020: Consistently positive performance NNA growth of 5.5% Steady AuM increase _ _ Natron stint) sereacetinemeninct i) = Competitive market position as one of . 7 wee the top ten Swiss private banks 131.2 = o a wow
Slide 27: ...and focused on three strategic areas
ErG ..and focused on three strategic areas <& Clients Focus 2021 Content @- Simplicity 24 February2021 = SS«éRage 27
Slide 28: Clients are at the heart of everything we do
EFG International E rG Clients are at the heart of everything we do Enhanced UHNW client service and offering = Superior client service delivered by experienced CROs @ Investment Solutions © Creditrisk& solutions ~—® Cliant proximity through global Cs ETT network with strong local knowhow Top Deal G
Slide 29: Bringing EFG's expertise to our clients
EFG International E rG Bringing EFG’s expertise to our clients Targetclients EFG’s dedicated solutions Discretionary Solutions = Comprehensive, first-class investment, wealth and credit solutions Ultra-high- Advisory Solutions net-worth = Open architecture with impartial and (UHNW)! New Capitalstrat
Slide 30: Simplicity shapes our approach
EFG International E rG Simplicity shapes our approach Foster connectivity Client Experience Increase digital capabilities and solutions Improve client experience = Digitalisation and automation Increase Efficiency = Centralise and harmonise processes = Streamline target operating models = Reduce num
Slide 31: Outlook and strategic priorities
EFG International E rG Outlook and strategic priorities = Supportive global markets = Strong level of client activity in the first two months Outlook = Promising NNA pipeline = Maintain growth momentum Priorities = Focus on high-value solutions and increase mandate penetration OQ = Increase profitab
Slide 32: Full-year 2020 results presentation 24 February 2021 Page 32
Full-year 2020 results presentation 24 February 2021 Page 32
Slide 33: Appendix
ErG Appendix Full-year 2020 results presentation 24 February 2021 Page 33
Slide 34: Income statement (IFRS)
EFG International E rG Income statement (IFRS) Net interest income 325.9 299.9 Net banking fee & commission income 593.0 655.7 Net other income 252.0 175.0 Operating income 1,170.9 1,130.6 Personnel expenses (696.9) (675.0) Other operating expenses (2217) (199.5) Amortisation of tangible fixed asset
Slide 35: Income statement (IFRS) quarterly
EFG International E rG Income statement (IFRS) Net interest income 169.3 156.6 163.6 136.3 Net banking fee & commission income 2747 318.3 320.2 335.5 Net other income 111.8 140.2 79.9 95.1 Operating income 555.8 615.1 563.7 566.9 Personnel expenses (357.8) (339.1) (362.3) (312.7) Other operating exp
Slide 36: Underlying income statement
EFG International E y= Underlying income statement Net interest income 336.4 302.8 Net banking fee & commission income 593.0 655.7 Net other income 213.4 156.1 Personnel expenses (696.9) (675.0) Other operating expenses (279.0) (249.7) Provisions (18.4) (30.0) Loss allowance expenses (8.7) (6.4) Inc
Slide 37: Underlying income statement quarterly
EFG International E rG Underlying income statement Net interest income 1747 161.7 166.5 136.3 Net banking fee & commission income 274.7 318.3 320.2 335.5 Net other income 126.5 86.9 68.1 88.0 Personnel expenses (357.8) (339.1) (362.3) (312.7) Other operating expenses (134.2) (144.8) (122.9) (126.8)
Slide 38: Reconciliation of Underlying results to IFRS results 2020
EFG International E rG Reconciliation of Underlying results to IFRS results 2020 Net interest income 302.8 299.9 Net banking fee & commission income 655.7 655.7 Net other income 156.1 175.0 Personnel expenses (675.0) (675.0) Other operating expenses (249.7) (12.7) (276.5) Provisions — ; (25.5) Loss
Slide 39: Balance sheet (IFRS)
EFG International E rG Balance sheet (IFRS) Cash and balances with central banks 8,384 Treasury bills and other eligible bills 1,375 Due from other banks 2,622 Derivative financial instruments 800.9 Financial asset at fair value through P&L. 2,400 Financial asset at fair value through other comprehe
Slide 40: Breakdown of AuM
EFG International E rG Breakdown of AuM 31.12.20 By catego eat Go cH) Cash & deposits 23% 22% 34.5 Bonds 23% 22% 35.1 Equities 30% 32% 51.4 Structured products 3% 3% 42 Loans 13% 12% 19.4 Hedge funds 2% — 27 Other 6% 1.4 _ 31. 12.20 42% 42% 67.1 eu R 27% 26% 41.2 GBP 10% 10% 15.3 AUD 8% 9% 14.8 CHF
Slide 41: Segmental analysis 2020
EFG International E rG Segmental analysis 2020 Performancesummary Switzerland | Continental Investment Gite bal Corporate (in CHF m) & Italy Europe Americas Asia Pacific Solutions oy Overheads Total Segment revenues 284.6 182.2 817 140.1 161.4 130.8 162.5 (12.7) - 1,130.6 Segment expenses (245.4) (1
Slide 42: Segmental analysis 2019
EFG International E rG Segmental analysis 2019 Performancesummary Switzerland | Continental Investment Gite bal Corporate (in CHF m) & Italy Europe Americas Asia Pacific Solutions oy Overheads Total Segment revenues 299.2 196.6 108.4 109.9 133.6 30.6 = 1,170.9 Segment expenses (271.6) (174.8) (106.2
Slide 43: Update on Life Insurance Exposures
EFG International E rG Update on Life Insurance Exposures Life Insurance related portfolios + Legacy exposures acquired more than 10 years ago = Outright portfolio carried at fair value (marked-to-model, Level 3) for IFRS accounts - For regulatory capital purposes (Swiss GAAP), this portfolio is car
Slide 44: Update on Life Insurance Exposures (II)
EFG International ErG Update on Life Insurance Exposures (II) Direct holding of life insurance policies for 219 insureds (2019: 255) of an average age of 92.4 years Outright portfolio Direct holding of life insurance policies + hedge instruments mitigating most of the risks, for 83 insureds of an av
Slide 45: Contacts
EFG International Contacts ErG Investors Media Investor Relations Jens Brueckner Head of Investor Relations Phone +41 44 226 1799 jens.brueckner@efginternational.com EFG International AG Bleicherweg 8 8001 Zurich Switzerland Phone +41 44 212 73 77 Fax +4144 226 18 55 efginternational.com Reuters: EF