Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (May 2021)
30 slides from Cembra Money Bank's investor presentation, May 2021
Slide 1: Cembra: A leading player in financing solutions and services in Switzerland
Cembra A leading player in financing solutions and services in Switzerland Investor presentation May 2021 Cembra
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. FY 2020 results 3. Strategy and outlook Appendix 2 May 2021 Investor presentation Cembra
Slide 3: Cembra at a glance
Cembra at a glance Cembra at a glance A leading player in financing solutions and services in Switzerland Who we are Key figures FY 2020 Net revenues (CHF) ■ Independent consumer finance specialist exclusively operating in Switzerland 2% ■ Serving more than 1 million customers through diversified di
Slide 4: Market positions
Cembra at a glance Market positions Serving more than 1 million customers in Switzerland Personal loans: 43% market share Auto business: 21% market share Credit cards: 13% market share 31 December 2020 personal loan receivables 31 December 2020 leasing receivables (ZEK, estimates) 31 December 2020 c
Slide 5: Long-term risk performance
Cembra at a glance Long-term risk performance High quality of assets – loss performance stable over the long term Loss rate NPL and delinquencies Reported Adjusted for one-off 3% 30+ days past due 2% 1.0 1.1 1.1 1.0 1.1 1% Non-performing loans (NPL)¹ 0.8 0.9 0.9 0% Dec 07 Dec 14 Dec 16 Dec 17 Dec 10
Slide 6: Capital management
Cembra at a glance Capital management Disciplined use of capital, and continuous flow of dividends Capital position Dividends Tier 1 capital ratio as % CHF per share Extraordinary dividend 4.45 from excess capital 22% 20.6% 19.8% 20.0% 3.75 3.75 3.75 20% 19.7% 19.2% 19.2% 3.35 3.55 3.10 17.7% 2.85 1
Slide 7: Track record
Cembra at a glance Track record Delivered on targets since the IPO, and resilient performance in 2020 IPO targets (Oct 2013) 2015 2016 2017 2018 2019 2020 Asset growth In line with Swiss GDP growth -0.3% 0.9% 12.0% 5.4% 37.0% -3.2%1 Organic: 4.0% Organic: 5.6% Profitability ROE >15% 17.7% 17.4% 16.7
Slide 8: Sustainability
Cembra at a glance Sustainability ESG recognition considerably improved ESG performance External recognition Governance ■ Strong and consistent governance structure since the IPO, with an independent and diverse board 1 “Low ESG risk” rating (score 16.5) confirmed in April 2021; ranked Top 12%2 in t
Slide 9: Agenda
Agenda 1. Cembra at a glance 2. FY 2020 results 3. Strategy and outlook Appendix 9 May 2021 Investor presentation Cembra
Slide 10: 2020 performance
FY 2020 results 2020 performance Resilient business performance during the Covid-19 pandemic Highlights Net income Net financing receivables Net revenues in CHF m in CHF m in CHF m ■ Net income at CHF 152.9m (–4%), Net interest income EPS at 5.21 -4% Commission and fees -4% +4% ■ Receivables 4% lowe
Slide 11: Market environment
FY 2020 results 2020 products and markets Challenging market environment Personal loans Auto loans and leases Credit cards Consumer loans market, in CHF bn New cars Transaction volumes, in CHF bn Number of registrations, in 1,000 -3% -24% Market environment -15% 317 314 300 311 237 2016 2017 2018 20
Slide 12: 2020 trend in net financing receivables
FY 2020 results 2020 trend in net financing receivables Receivables 4% lower, with businesses more resilient in H2 2020 Net financing receivables (month-end period, month by month) Comments in CHF m - 4% 7,000 0% -3% 0% -1% • Effects of restrictions on receivables: Cembra 6,293 6,000 Lockdown Restri
Slide 13: Card transaction volumes and revenues
FY 2020 results Card transaction volumes and revenues Stable volume recovery since June 1 Annual growth Monthly growth Cembra Market In CHF m Year on year as % -5% Transaction volume 20 10% 13% 1% -2% -1% -1% -2% 0 -6% -5% 4% 3% -16% 5,699 -20 -10% -11% -9% -11% 5,427 -16% -17% -22% -34% -18% -18% -
Slide 14: Funding
FY 2020 results Funding Stable, with a well-balanced and diversified funding profile Funding mix Funding programmes In CHF m1 6,145 AT1 subordinated One issuance, remaining term to first 5,849 150 call of 3.9 yrs. at a rate of 2.50%4 Non-Deposits – 44% 250 150 250 1,725 Convertible bond One issuance
Slide 15: Provision for losses
FY 2020 results Provision for losses Solid loss performance in 2020 Provision for losses 30+ days past due/NPL In CHF m 56.4 3% 51.2¹ Reported 30+ days past due 50.1 44.6 45.1 Adjusted for one-off¹ 1.8% (1.6%¹) 1.8% (1.6%¹) 2% 1.8% 1.8% 1.8% Non-performing loans (NPL)³ 1% 0.6% (0.4%¹) 0.7% (0.4%¹) 4
Slide 16: Agenda
Agenda 1. Cembra at a glance 2. FY 2020 results 3. Strategy and outlook Appendix 16 May 2021 Investor presentation Cembra
Slide 17: Cembra is evolving
Strategy and outlook Cembra is evolving Aspiration to further increase diversification 2010 2015 2020 Aspiration 2% Business mix 8% as % of net revenues 25% 31% 23% Personal loans 42% Auto 56% 69% 19% Cards 25% Other Fee income 21% 22% 25% as % of total income Costs 43% 42% 50% as % of total income
Slide 18: Outlook
Strategy and outlook Outlook Resilient business performance expected 2021 business priorities: focus on execution Outlook 20211 Continue to deliver ■ Regain organic revenue growth, with ■ In 2021, Cembra currently expects to deliver a resilient business despite Covid-19 continued disciplined risk, f
Slide 19: Agenda
Agenda 1. Cembra at a glance 2. FY 2020 results 3. Strategy and outlook Appendix 19 May 2021 Investor presentation Cembra
Slide 20: Macroeconomic outlook
Appendix Macroeconomic outlook Swiss economy shrank by 3.0% only in 20201 GDP in Switzerland CHF interest rates Unemployment rate in Switzerland Change vs. previous period as % End-of-period 3-year swap rates as % As %, average per period 4 3.0 3.0 2.0 1.6 2 1.1 0.5 5 0 4 3.3 3.3 0.0 3.1 3.1 3 2.5 2
Slide 21: P&L
Appendix P&L In CHF m 2020 2019 as % Comments Interest income 1 401.8 359.8 12 1 Higher interest income driven by full-year 5 Growth primarily due to the acquisition, Interest expense 2 -26.9 -27.8 -3 cashgate earnings,1 partially offset by partly offset by impact of Covid-19 on Net interest income
Slide 22: Net revenues by source
Appendix Net revenues by source Impact of Covid-19 on all businesses, with stable yields in 2020 In CHF m Revenues by source Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +4% 497 -8% -2% -6% 480 2,625 2,915 1,029 2,853
Slide 23: Operating expenses
Appendix Operating expenses In CHF m 2020 2019 as % Comments Compensation and benefits 1 129.5 120.5 8 1 Driven by 8% higher average FTEs in 2020 7 Increase was due to the cashgate Professional services 2 17.8 22.4 -20 mainly related to the acquisition,1 partially acquisition and strategic investmen
Slide 24: Balance sheet
Appendix Balance sheet In CHF m Assets 31.12.20 31.12.19 as % Comments Cash and equivalents 599 543 10 1 Lower net financing receivables mainly driven 2 Decrease in funding in line with financing Net financing receivables 1 6,293 6,586 -4 by the impact of Covid-19 on consumer receivables financing n
Slide 25: cashgate integration
Appendix cashgate integration Completed in July 2020 after 11 months Consolidated of branch network (completed) Integrate businesses (completed) Commercial consolidation (completed) From 1 August 2020 on 2019 2020 Q3 Q4 Q1 Q2 Q3 Q4 B2B Single brand Business integration IT integration 13 Cembra branc
Slide 26: History
Appendix History Foundation –“Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance Launched commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction IKEA cards E. Uldry & Cie” in Fribourg Migros partnership and institutions in CH
Slide 27: Key figures over 10 years
Appendix Key figures over 10 years US GAAP 2011 2012 IPO 2013 2014 2015 2016 2017 2018 2019 2020 Net revenues (CHF m) 338 356 355 379 389 394 396 439 480 497 Net income (CHF m) 131 133 133 140 145 144 145 154 159 153 Cost/income ratio (%) 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 48.33 49.8 Net fin re
Slide 28: The Cembra share
Appendix The Cembra share Shareholder structure: 98% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 8% 2% ~14,000 registered 8% 17% private shareholders EU 10% 54% Switzerland 20% 82% US incl. CND ~1,100 institutional investors Main
Slide 29: Cautionary statement regarding forward-looking statements
Appendix Cautionary statement regarding forward-looking statements This presentation by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group’s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financia
Slide 30: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences, roadshows and calls 22 July 2021 Publication H1 results and interim report 10 May 2021 Canada virtual roadshow 12 May 2021 UBS virtual pan-european small/mid-cap conference 1 June 2021 Deutsch