Leonteq Ag · SIX:LEON
Leonteq — FY2023 Earnings Presentation
23 slides from Leonteq's earnings presentation, Feb 8, 2024
Slide 1: Full-Year 2023 Results Presentation
Slide 2: Important information
fe “tT EONTEQ Important information Forward Looking Statements: This presentation contains statements that constitute "forwarcHooking statements,” including but not limited to management's outlook for Leonteq’s financial performance, statements relating to the anticipated effect of transactions and
Slide 3: Business review, Performance, Take aways
LEONTEQ Business review | Performance | Take aways | SLINSAY €20% YWSAT1NA
Slide 4: Our Business Review
ete LEONTEQ OUR BUSINESS REVIEW SLINSSY €202 HVSA-TINA
Slide 5: A challenging 2023 for Leonteq
ste “tT EONTEQ A challenging 2023 for Leonteq Our financial results were significantly below our expectations Our client franchise demonstrated its resilience in a challenging environment We have further diversified our offering and strengthened our footprint outside our home market We continued to
Slide 6: Key figures
38,206 197,118 4.3 6.0 47% 2.1
Slide 7: We have further diversified our offering and strengthened our footprint outside our home market
LEONTEQ We have further diversified our offering and strengthened our footprint outside our home market Maintained strong position in home market #1 issuer of SIX listed yield enhancement products AMC platform: added crypto assets to universe; enabled Cornér Bank as issuer Innovative exchange traded
Slide 8: We continued to invest in our award-winning digital investing platform LYNQS
fe “tT EONTEQ We continued to invest in our award-winning digital investing platform LYNQS Several new features launched Platform stats v Equity Screener * 1,000+ intermediaries v Basket Optimizer » 4,500+ users connected v Revenue Tracker * 3,500,000+ pricings * 12 issuers available for multiissuer
Slide 9: We are about to launch a new pension savings offering in Switzerland
fe “tT EONTEQ We are about to launch a new pension savings offering in Switzerland Existing solutions for life insurance companies New innovative pension savings solution Capital-protected savings and drawdown solutions Providing attractive and flexible products across all lifecycle stages Cooperati
Slide 10: We aim to launch our retail flow business in Switzerland
fe “tT EONTEQ We aim to launch our retail flow business in Switzerland Invested in brand new platform Swiss market for exchange traded leverage products (EUR billion)! Built ateam of experts in trading and sales Good progress in developing a core platform required for market making and issuing a lar
Slide 11: Our efforts were recognized by external ratings
fe “tT EONTEQ Our efforts were recognized by external ratings Credit ratings ESG ratings BBB/stable Rating upgraded by Fitch Ratings Rating action commentaries (selection)' WelFestablished and scalable structured-product issuance platform Good franchise in the Swiss and European structured products
Slide 12: Our Performance
Slide 13: 2023: A less favourable market environment than 2022 for Leonteq
fe “tT EONTEQ 2023: A less favourable market environment than 2022 for Leonteq Subdued market volatility (CBOE Volatility Index’; USD) 2022 40 2023 35 30 25 20 10 1 Source: Refinitiv, 2023 Rapidly rising interest rates! Strengthening of Swiss franc! 2022 2022 6% 2023 1.10 2023 5% ae 1.05 A% ° 1.00 3
Slide 14: Resilient performance in historical core franchise
fe “tT EONTEQ Resilient performance in historical core franchise SSPA market! (CHF billion) Yield enhancement Leverage Capital protection Participation Total FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 | Source: Swiss Structured Products Association, 2023 Total ma
Slide 15: Fairly stable margins and net fee income diversified across regions
fe “tT EONTEQ Fairly stable margins and net fee income diversified across regions Net fee income by revenue recognition (CHF million) FY 2022 A 221.6 FY 2023 213.2 (exe adj.) Structured products (6%) (3%) Pension S 20% 20% avings Total (4%) (2%) Margin’ Number of outstanding pension policies | Net f
Slide 16: Normalised net trading result on the back of significantly lower contribution from hedging activities
fe “tT EONTEQ Normalised net trading result on the back of significantly lower contribution from hedging activities CBOE Volatility Index! (USD) 40 35 30 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 1 Source: Refinitiv, 2023 2 At the end of the respective period Hedging contributions (CHF million
Slide 17: Lower profitability YoY mainly driven by lower net trading result
fe “tT EONTEQ Lower profitability YoY mainly driven by lower net trading result laos az Shae Net fee income 213.2 221.6 (4%) Net trading result 36.6 236.7 (85%) Net interest result 6.5 (8.0) N/A Other operating income 37 61 (39%) Total operating income 260.0 456.4 (43%) Total operating expenses (241
Slide 18: Decrease in costs mainly resulting from lower variable compensation
fe “tT EONTEQ Decrease in costs mainly resulting from lower variable compensation (CH milion th oo Personnel expenses 138.0 151.6 (9%) Professional services 158 208 (24%) Marketing, travel and representation 67 68 (1%) IT-related expenses 258 22.9 13% Other administrative expense (incl. rent, bankin
Slide 19: Solid balance sheet underpinned by strong capital
fe “tT EONTEQ Solid balance sheet underpinned by strong capital (HP mifonl suai onyeY Cash and receivables! 917.9 1,614.9 (43%) Trading financial assets? 3,013.0 3,595.3 (16%) PRV? of derivative financial instruments 2,398.7 4144.4 (42%) Financial assets / investments* 2,790.0 2,822.3 (1%) Other ass
Slide 20: Strong capital base maintained while significant distributions made to shareholders in 2023
fe “tT EONTEQ Strong capital base maintained while significant distributions made to shareholders in 2023 Capital base’ (CHF million) ee 20-6 * Dividends and * Fees recognised other distribution: -_Unrealisedincome #5 recourses CHF 72.4m related to debt eens months Share buyback instruments at fair
Slide 21: Capital allocation 2023 and earnings guidance for 2024
fe “tT EONTEQ Capital allocation 2023 and earnings guidance for 2024 Communicated capital return policy for 2023 Capital return policy for 2024 et seq. * Payout! ratio of more than 50% of annual Group net profits » Possible launch of share buyback programmes if results permit » Ambition to pay cash
Slide 22: 2023 and 2024 take-aways
Lo *% LEONTEQ 2023 * Disappointing results ° Resilient client franchise * Continued execution of strategic priorities 2024 * Harvest investments of previous years to continue diversification of revenue sources * Optimise cost structure to adapt to rapidly changing market environment * Clear ambition
Slide 23: Leonteq
LEONTEQ SLINS3¥