VZ Holding AG · SIX:VZN

VZ — FY2021 Earnings Presentation

27 slides from VZ's earnings presentation, Mar 3, 2022

  1. Slide 1: Results and outlook 2021

    VZ Group VZ Holding Ltd Innere Güterstrasse 2 6300 Zug 2021 Results and outlook Telephone +41 58 411 80 00 www.vzch.com www.vzfinanzportal.com Appendix: company overview Zurich, 3 March 2022

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements This publication originates from VZ Holding Ltd and/or its affiliated companies (hereinafter called «VZ»). This publication and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an off

  3. Slide 3: Agenda

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

  4. Slide 4: Summary 2021

    Summary 2021 Business development Financials • Growth in all business lines: • Top line +18.3% yoy to CHF 388.9 million – Positive new client inflow and sentiment – Strong demand for both consulting and platform • Operating expenses +15.8% to CHF 201.0 million services − Personnel expenses +12.3% yo

  5. Slide 5: Revenues: +18.3% yoy

    Revenues: +18.3% yoy in CHF million +18.3% 388.9 +8.9% Total revenues +18.3% yoy 28.2 +6.2% +9.2% 328.7 • Consulting fees1 +10.2% yoy +10.3% 301.7 64.3 25.6 284.2 25.1 13.8 • Banking income from interest business, 260.2 23.4 62.4 27.3 235.9 22.2 commissions and trading activities +3.0% yoy 57.5 19.3

  6. Slide 6: Banking income: volatile and difficult to predict

    Banking income: volatile and difficult to predict in CHF million 64.3 62.4 60.9 56.8 57.5 55.5 5.2 5.1 14.9 17.8 6.7 7.9 • Interest business: Increasing SNB exemption threshold leads to 18.5 28.6 higher net interest result. 17.0 24.2 21.3 22.4 • Trading result: Random development driven by financial

  7. Slide 7: Net profit: +21.9% yoy

    Net profit: +21.9% yoy in CHF million +21.9% 143.2 +14.9% • Operating margin (EBIT) at 43.1% +4.2% 117.5 (2020: 41.7%, long-term target: 42%) +13.1% − Revenues +18.3% +3.2% 102.3 98.2 − Operating expenses +15.8% 84.1 86.8 • Net profit margin 36.8% vs 35.7% in 2020 (long-term target: 36%) • Dispropor

  8. Slide 8: Financial Consulting: NNM above target corridor

    Financial Consulting: NNM above target corridor Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF million in CHF million 4’804 28.2 204 24.5 25.0 188 21.7 22.8 172 3’206 2’294 160 15.1 148 12.4 13.1 13.7 2’566 2’708 11.2 2’312 1’566 1’263 1’403 1’211 1

  9. Slide 9: Wealth Management: AuM +24.0%

    Wealth Management: AuM +24.0% in CHF million 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 yoy AuM total 21’775 23’056 27’627 31’459 39’002 +24.0% • PM mandates 13’136 13’641 16’715 19’061 24’818 2 +30.2% Share of total AuM 60.3% 59.2% 60.5% 60.6% 63.6% • Others1 8’639 9’415 10’912 12’398 14’184 +14.

  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 Long term target: 33% 63.9% 60.8% 58.3% 55.6% 53.1% 21.6% 19.7% 17.5% 15.0% 12.1%

  11. Slide 11: Client Satisfaction: Net Promoter Score (NPS)

    1 Client Satisfaction: Net Promoter Score (NPS ) Consulting clients Portfolio management clients VZ Finanzportal NPS: 72.1 NPS: 83.1 NPS: 46.9 13.6% 21.0% 1.6% 52.6% 41.8% 3.5% 75.5% 84.8% 5.6% Promoters (9, 10) Passives (7, 8) Detractors (0-6) 1 Score based on a 0-10 scale answering the question ‘h

  12. Slide 12: Branch offices

    Branch offices Switzerland Germany #: 35 #: 5 United Kingdom #: 2 branch office satellite new branch/satellite office planned © VZ Holding Ltd 11

  13. Slide 13: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 12

  14. Slide 14: Income statements (1)

    Income statements (1) in CHF million 2018 2019 2020 2021 yoy Consulting fees 22.8 24.5 25.0 27.7 +10.8% Management fees: on AuM 173.0 188.5 205.3 255.3 +24.4% other 20.4 21.9 24.2 27.3 +12.8% Banking income 60.9 57.5 62.4 64.3 +3.0% Net earned premiums 6.5 8.7 11.2 13.8 +23.2% Other operating revenu

  15. Slide 15: Income statements (2)

    Income statements (2) in CHF million 2018 2019 2020 2021 yoy EBITDA 127.2 142.4 155.1 187.9 +21.1% Depreciation and amortisation 10.4 17.6 18.1 20.4 +12.7% EBIT 116.8 124.8 137.0 167.5 +22.3% Net finance income –0.1 –0.5 –0.4 –0.6 n.m. Profit before income tax 116.7 124.3 136.6 166.9 +22.2% Income t

  16. Slide 16: Personnel expenses

    Personnel expenses in CHF million 39.7% 40.0% 39.8% 39.7% 39.2% 180 37.2% 160 41.000 • Personnel expenses +12.3% yoy 144.8 36.000 140 128.9 • Improved personnel expense ratio due to tailwind of 119.8 AuM-related revenues 31.000 120 104.0 113.1 100 93.7 26.000 • Personnel development 80 21.000 31.12.

  17. Slide 17: Other operating expenses

    Other operating expenses in CHF million 14.2% 16.3% 14.1% 11.6% 11.9% 12.6% 60 48.9 50 42.4 5.1 • Other operating expenses +25.1% yoy 40.1 40 39.1 − Office space +41.7% yoy (adj. for 8.7 35.1 9.5 33.4 3.6 IFRS 16: +19.0%) 8.8 3.3 9.3 − Marketing expenses +2.2% yoy 30 8.2 8.1 − General and administra

  18. Slide 18: EBIT and margin

    EBIT and margin in CHF million 42.6% 43.1% 46.0 200 41.1% 41.4% 41.7% 39.4% 41.0 167.5 36.0 150 137.0 31.0 • EBIT +22.3% yoy 124.8 116.8 26.0 100.4 102.6 • EBIT long-term margin target: 42% 100 21.0 • No significant leverage expected going forward 16.0 50 11.0 6.0 0 1.0 2016 2017 2018 2019 2020 2021

  19. Slide 19: Balance sheets

    Balance sheets in CHF million 31.12.20 31.12.21 Cash & cash equivalents 1’630.2 1’799.1 • Balance sheet total on the reporting date is somewhat coincidental; it Short-term investments 116.4 89.3 does not fully reflect the underlying Swiss prime residential mortgages 2’371.8 2’903.0 business developm

  20. Slide 20: Equity and payout ratios

    Equity and payout ratios Payout ratios 2019 2020 2021 Equity ratios 31.12.19 31.12.20 31.12.21 in CHF million Net profit 102.3 117.5 143.2 Total equity 549.8 616.7 699.7 in CHF million Retained earnings 62.2 69.2 81.4 Dividend total 40.1 48.3 61.8 1,2 Equity ratio3 13.6% 12.4% 12.1% Dividend per sha

  21. Slide 21: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 20

  22. Slide 22: Outlook

    Outlook Business development • Continuous work on increasing new client inflow, consulting capacity, client conversion and platform usage • VZ Finanzportal: further develop digital cockpit with additional features, including professional e-trading desktop and crypto-currency trading • Germany: furth

  23. Slide 23: Agenda

    Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 22

  24. Slide 24: What does VZ do?

    What does VZ do? Target clients… … seek expert advice… … and solid implementation • Retirement planning (employees)/ 1 Portfolio management succession planning (entrepreneurs) − Discretionary mandates 50+ − Advisory mandates • Estate planning • Investment advice 2 Banking services • Homeowners − Cus

  25. Slide 25: VZ Finanzportal

    VZ Finanzportal © VZ Holding Ltd 24

  26. Slide 26: Strong brand recognition

    Strong brand recognition Brand associated with expertise, quality and independence Periodical Books Seminars Media coverage Online/Newsletters © VZ Holding Ltd 25

  27. Slide 27: Long track record of organic growth and profitability

    Long track record of organic growth and profitability in CHF million Operating revenues1 Net profit1 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 1 1993–2003 according to SWISS GAAP; 2004–2

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