Bellevue Group AG · SIX:BBN
Bellevue — FY2020 Earnings Presentation
58 slides from Bellevue's earnings presentation, Mar 2, 2021
Slide 1: Bellevue Group results 2020
Bellevue Group results 2020 Presentation for investors, analysts and the media Zurich, March 2, 2021
Slide 2: Disclaimer
Disclaimer This document was produced by and the opinions expressed are those of Bellevue Group AG («Bellevue») as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation
Slide 3: Agenda
Agenda A Summary of Fiscal 2020 1 André Rüegg, Group CEO Results for Fiscal 2020 2 Michael Hutter, Group CFO Business & Strategy Update 3 André Rüegg, Group CEO 4 Outlook & Summary 5 Questions & Answers Appendix 3
Slide 4: A Summary of Fiscal 2020
1 A Summary of Fiscal 2020 André Rüegg, Group CEO 4
Slide 5: 2020 a record year highlighted by healthcare
A Summary of Fiscal 2020 2020 a record year highlighted by healthcare Consistent Strong operating Simplified & stronger strategy execution performance platform Successful sale of Bank am Record financial results despite Simplified, robust and agile Bellevue turbulent markets organization and c
Slide 6: Key figures 2020
A Summary of Fiscal 2020 Key figures 2020 Positive development of performance criteria Total operating Operating profit Client assets Net new money income (EBTDA) 1) CHF 12.0 bn CHF 377 mn CHF 109.9 mn CHF 46.3 mn (31.12.19: CHF 10.6 bn) (prev. period: CHF 422 mn) (prev. period: CHF 101.4 mn) (prev.
Slide 7: COVID-19: Bellevue Group demonstrates resiliency
A Summary of Fiscal 2020 COVID-19: Bellevue Group demonstrates resiliency Our healthcare expertise in a “sweet spot” Resilient business model with Convincing healthcare investment strategies attractive positioning (absolute performance 2020, in USD) Organization - robust and agile BB Adamant Digital
Slide 8: Client assets at all-time high – despite unprecedented market turmoil
A Summary of Fiscal 2020 Client assets at all-time high – despite unprecedented market turmoil Sustainable growth in assets under management, 2015 – 2020 CHF million Assets under management top CHF 12.0 14'000 bn, setting another record high +14% 12'038 Assets under management show another 12'000
Slide 9: Core Healthcare strategies attract more than CHF 1 bn for the first time
A Summary of Fiscal 2020 Core “Healthcare” strategies attract more than CHF 1 bn for the first time Growth of AuM in 2020 CHF million Assets under management increase 14% thanks to new money inflows and performance-driven growth Net new money of CHF 377 mn represents 1'062 12'038 exclusively organ
Slide 10: Further improvement in operating income with intact momentum
A Summary of Fiscal 2020 Further improvement in operating income with intact momentum Growth of operating income, 2015 – 2020 (continuing operations) Operating income Operating income climbs more than 8% CHF million to CHF 110 mn +8.4% Core asset management business generates record operating inco
Slide 11: Results for Fiscal 2020
2 Results for Fiscal 2020 Michael Hutter, Group CFO 11
Slide 12: Consolidated results
Results for Fiscal 2020 Consolidated results Total operating income Total operating income Management fees Performance fees Total operating income up 8.4% (CHF mn) (CHF mn) (CHF mn) Management fees up 7.3% thanks to higher average asset base and new money with attractive margins +8.4% +7.3% -39.
Slide 13: Consolidated results
Results for Fiscal 2020 Consolidated results Operating expenses and operating profit Personnel expenses Operating expenses Operating profit* Increase in personnel expenses largely (CHF mn) (CHF mn) (CHF mn) attributable to the greater number of employees, higher profit-based compensation and expen
Slide 14: Consolidated results
Results for Fiscal 2020 Consolidated results Group net profit Depreciation and Increase in depreciation and value Valuation adjustments Taxes amortization (CHF mn) (CHF mn) adjustments reflects the divestment of (CHF mn) Bank am Bellevue and investment expenditures Lower AuM and operating result
Slide 15: Capital structure and management
Results for Fiscal 2020 Capital structure and management As of December 31, 2020 (consolidated) CHF million Equity base remains strong despite special dividend payout in 2020 (CHF 37 mn) thanks to sustained earnings power Reduction in goodwill & intangibles (prev. 53 period: CHF 64 mn), after ex
Slide 16: Attractive value creation for shareholders
Results for Fiscal 2020 Attractive value creation for shareholders Confidence in the business model is reflected in the dividend policy General reserves CHF million Proposed total dividend of CHF 4.00 per share Significant 20% increase in ordinary dividend to 34 Special dividend CHF 1.50 per share
Slide 17: Business & Strategy Update
3 Business & Strategy Update André Rüegg, Group CEO 17
Slide 18: Bellevue Highlights 2020
Business & Strategy Update Bellevue Highlights 2020 Transformation to a pure asset manager completed – solid progress made “Purpose” “Performance” “Platform” Clear strategy & philosophy Strong performer & Resilient, agile and scalable as pure asset manager consistent execution organization Transfo
Slide 19: Steady value creation for shareholders over the long term
Business & Strategy Update Steady value creation for shareholders over the long term Comparison of key figures 2015 – 2020 2015* 2020 77% Client assets CHF 6.8 bn + (12.0% p.a.) = CHF 12.0 bn 37% Total operating income CHF 80.0 mn + (6.6% p.a.) = CHF 109.9 mn 67% Operating profit CHF 27.8 mn + (10.7
Slide 20: Attractive product offering and solid investment performance
Business & Strategy Update Attractive product offering and solid investment performance High level of quality and continuity clearly create value for Bellevue clients 72% of AuM in 1st or 2nd quartile in 2020 Very competitive 82% of AuM in 1st and 2nd quartile over 3 years performance of invest-
Slide 21: Our forward and growth strategy
Business & Strategy Update Our forward and growth strategy Growth = product quality + innovation + customer momentum Strategic Strategic market and product directions customer developments «Grow with the Products» «Innovate» «Renovate & clean up» AuM base 2020 = CHF 12.0 bn Number of intermediary an
Slide 22: Product development and innovation are fueling growth
Business & Strategy Update Product development and innovation are fueling growth Strategic priorities and developments 2020 Strategic focal points New developments in 2020 Effects & Benefits 3 flagship products > CHF 1 bn Simplified market and client access (platforms) 2-3 other «blockbusters»
Slide 23: Client and growth momentum
Business & strategy update Client and growth momentum Client network continues to grow despite the lockdowns Strong growth in “core markets” across all segments ~ 15% AuM Switzerland, Germany, UK (local presence in UK Cont. EU ~ 50% AuM country) Strong growth in demanding client segment (big USA
Slide 24: Progress in ESG – the new market reality!
Business & Strategy Update Progress in ESG – the new market reality! Sustainable and responsible investing with and in Bellevue Corporate values “Bellevue is committed to sustainable, responsible and values-driven business practices” Corporate Level Investment Portfolio Level ESG Policy Bellevue Gro
Slide 25: Outlook & Summary
4 Outlook & Summary André Rüegg, Group CEO 25
Slide 26: Outlook for 2021
Outlook & Summary Outlook for 2021 Strong position enables a solid performance despite challenging environment Business model as a pure asset manager with a high dependency on the equity market, esp. the healthcare sector Business model shows Still no alternative to equities due to structural fi
Slide 27: Outlook 2021
Outlook & Summary Outlook 2021 Long-term goals reiterated Assets under Steady expansion of business base targeted, but depends on the market 1 management (AuM) Organic new money growth in a range of 5-10% p.a. Profitable top-line Asset-based revenues with higher margin quality and long-term gr
Slide 28: Summary
Outlook & Summary Summary Bellevue now a pure asset manager with a clear positioning and promising potential Sale of Bank am Bellevue to Quintet Private Bank successfully closed in Q2 2020 despite the Successful lockdown transformation to a Bellevue Group has operated as a pure play asset manage
Slide 29: Questions & Answers
5 Questions & Answers 29
Slide 30: Appendix
# Appendix 30
Slide 31: Additional details of fiscal results 2020
# Additional details of fiscal results 2020 31
Slide 32: Consolidated financial statements
Additional details of fiscal results 2020 Consolidated financial statements Consolidated income statement CHF 1’000 1.1.-31.12.2020 1.1.-31.12.2019 Change restated Revenues from asset management services 108 819 102 156 +6 663 Income from financial investments 1 071 - 1 336 +2 407 Net other income -
Slide 33: Consolidated financial statements
Additional details of fiscal results 2020 Consolidated financial statements Consolidated balance sheet as of December 31, 2020 CHF million Asset side of balance sheet: Assets Liabilities Current assets of CHF 156.4 mn, non-current assets CHF 79.1 mn Liability side of balance sheet: 55.6 Liabilit
Slide 34: Consolidated financial statements
Additional details of fiscal results 2020 Consolidated financial statements Alternative Performance Indicators CHF 1’000 1.1.-31.12.2020 1.1.-31.12.2019 Change restated Operating income 109 851 101 368 +8 483 Personnel expenses - 51 894 - 47 794 - 4 100 Other operating expenses - 11 705 - 13 111 +1
Slide 35: Consolidated financial statements
Additional details of fiscal results 2020 Consolidated financial statements Key figures 2020 2019 Change restated Consolidate income statement/balance sheet Cost/Income ratio 57.9% 60.1% - Earnings per share (in CHF) 1.72 1.45 +18.6% Equity per share (in CHF) 12.32 14.73 - 16.4% Return on equity 21.
Slide 36: Shareholder base
Additional details of fiscal results 2020 Shareholder base Structure of the shareholder base as of December 31, 2020 Non-registered Strong commitment of core shareholders public shareholders Substantial increase in management/ (n/a) employee shareholders (31.12.2019: 13.3%) 11.3% Core Hansjörg
Slide 37: Bellevue Group shares (BBN SW)
Additional details of fiscal results 2020 Bellevue Group shares (BBN SW) Pleasing performance compared to relevant indexes and other asset managers Total return in CHF (5 years) Market capitalization as of 31.12.2020 Indexed to 100 (in %) CHF 415 mn 350 +219.4% Bellevue Group AG 300 Polar Capital Ho
Slide 38: Business profile & strategy
# Business profile & strategy 38
Slide 39: Bellevue Group a pure play asset manager
Business profile & strategy Bellevue Group a "pure play” asset manager Company profile and strategy Client assets CHF 12.0 bn Business model = simple & clear Philosophy = build value Top line Pure play asset manager Prioritization of investment performance creates value for the client ~CHF 110 m
Slide 40: Attractive offering with clearly differentiated investment expertise
Business profile & strategy Attractive offering with clearly differentiated investment expertise Good balance between “specialty” and “diversification” - for investors and shareholders! Specialized healthcare strategies Alternative investment strategies Traditional investment strategies (directional
Slide 41: International reach, locally anchored
Business profile & strategy International reach, locally anchored Ongoing development of international business reach with a strong corporate culture High workforce stability and quality Constantly growing talent pool Very low voluntary turnover rate 5 London Strong commitment from key individ
Slide 42: Business model and positioning enable more growth
Business profile & strategy Business model and positioning enable more growth Our growth drivers Growth drivers Market performance New money growth Acquisitions Structural growth themes with High level of attractiveness and Proven experience and record solid fundamentals innovation across th
Slide 43: Selective expansion in private equity business
Business profile & strategy Selective expansion in private equity business Focus on “Healthcare” and “Entrepreneurial Investments” Private Equity Healthcare Private Equity DACH Ongoing inclusion of high-profile entrepreneurs and families in investor group Selective expansion of team to grow its
Slide 44: Progress towards ESG – the new market reality!
Business profile & strategy Progress towards ESG – the new market reality! Major ESG investment milestones H2 2017 H1 2018 H2 2018 H1 2019 Strategic Launch of BB Adamant BB Adamant Sustainable Signatory of the decision to Sustainable Healthcare Fund; Healthcare Fund awarded Austrian Eurosif SRI Tran
Slide 45: Milestones in the Group's history
Business profile & strategy Milestones in the Group's history Headline events since the Group’s establishment in 1993 1993 1995 1997 2006 2009 2014 2016 Bellevue Group IPO BB Medtech AG Launch of Launch of first Bellevue SICAV Acquisition of Acquisition of established first Ventures investment fund
Slide 46: Why turn to Bellevue Group?
Business profile & strategy Why turn to Bellevue Group? Highlights Bellevue Group Independent, efficient, entrepreneurial management style ever since it was established in 1993 “Pure” asset manager with “Multi-boutique” with unique range of investment competencies and good balance between a clea
Slide 47: Update on important investment products
# Update on important investment products 47
Slide 48: BB Biotech AG
Update on important investment products BB Biotech AG Flagship product with convincing long-term performance track record 2020 2020 3 years 5 years ITD Share NAV Strong NAV Outperformance BB Biotech AG – CHF 19.3% 24.3% 34.1% 65.1% 2848.7% NBI 15.8% 15.8% 31.1% 22.1% 1353.3% BB Biotech AG – USD 30.9
Slide 49: BB Healthcare Trust
Update on important investment products BB Healthcare Trust Investing in the rapidly evolving healthcare paradigm 2020 2020 3 years 5 years ITD Share NAV Strong outperformance of Share BB Healthcare Trust – GBP MSCI World Healthcare Net Return 29.1% 10.3% 25.7% 25.7% 66.2% 42.1% n.a. n.a. 98.2% 62.3
Slide 50: BB Adamant Medtech & Services
Update on important investment products BB Adamant Medtech & Services Performance – Stability – Diversification Fund outperforms broader 2020 3 years 5 years ITD healthcare markets despite a BB Ada. Medtech & Services – USD-I 16.6% 66.8% 126.9% 320.6% challenging environment MSCI World HC Equip. & S
Slide 51: BB Adamant Digital Health
Update on important investment products BB Adamant Digital Health Making the healthcare system more efficient with digital health 2020 3 years 5 years ITD Stellar performance, even strongly outperforming Nasdaq 100 BB Adamant Digital Health – USD-I 68.4% n.a. n.a. 130.4% Digitization in healthcare
Slide 52: BB Adamant Biotech
Update on important investment products BB Adamant Biotech Focused (40–50 holdings), global and mid cap-oriented approach 2020 3 years 5 years ITD Strong absolute performance, slightly behind benchmark BB Adamant Biotech – USD-I NBI 23.9% 25.7% 36.3% 41.8% 28.2% 34.4% 428.8% 597.0% mRNA-vaccine with
Slide 53: BB Adamant Healthcare Strategy / BB Adamant Sustainable Healthcare
Update on important investment products BB Adamant Healthcare Strategy / BB Adamant Sustainable Healthcare 40 holdings, four regions, off-benchmark, ESG integration vs. holistic ESG-approach 2020 3 years 5 years ITD Both funds clearly outperform the BB Ada. Healthcare Strategy – USD-I MSCI World Hea
Slide 54: BB Adamant Asia Pacific HC / BB Adamant Emerging Markets HC
Update on important investment products BB Adamant Asia Pacific HC / BB Adamant Emerging Markets HC Innovation and digitization generate sustainable growth 2020 3 years 5 years ITD Very competitive performance BB Ada. Asia Pacific HC – USD-I 45.0% 62.6% n.a. 110.1% MSCI Asia Pacific HC Net TR 33.0%
Slide 55: BB Entrepreneur Funds (I)
Update on important investment products BB Entrepreneur Funds (I) Solid balance sheets – the best medicine 2020 3 years 5 years ITD BB Entrepre. Europe Small – EUR-I 16.3% 6.6% 56.1% 192.0% Benchmark* 11.7% 20.9% 53.4% 189.0% Strong absolute returns BB Entrepre. Europe – EUR-I 1.9% 4.8% 23.9% 214.2%
Slide 56: BB Entrepreneur Funds (II)
Update on important investment products BB Entrepreneur Funds (II) Solid balance sheets – the best medicine Recovery thanks to global support measures – e.g. EU Recovery Fund and stimulus package of EUR 750 bn Partly positive surprises regarding profitability of industrials for Q2/2020, 70% of c
Slide 57: BB Global Macro
Update on important investment products BB Global Macro Absolute return strategy with daily liquidity 2020 3 years 5 years ITD High volatility but positive absolute performance BB Global Macro – EUR-I LIBOR 3 Month 2.7% -0.4% 7.9% -1.2% 16.3% -1.8% 49.4% 0.9% COVID-19 led to a brief but dramatic c
Slide 58: Corporate Events & Contact
Corporate Events & Contact Corporate Events March 23, 2021 Annual General Meeting 2021 July 29, 2021 Publication half-year report 2021 Investor Relations Bellevue Group André Rüegg Michael Hutter Phone +41 44 267 67 00 CEO Bellevue Group CFO Bellevue Group Fax +41 44 267 67 01 Phone +41 44 267 67 10