Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — Q3 2016 Earnings Presentation
23 slides from Evli Plc Class B's earnings presentation, Oct 20, 2016
Slide 1: Evli Bank Plc Review of 1-9/2016
Evli Bank Plc Review of 1-9/2016 Maunu Lehtimäki, CEO Juho Mikola, CFO 20.10.2016
Slide 2: Evli in brief
Evli in brief 3 business areas WEALTH MANAGEMENT MARKETS CORPORATE FINANCE over 200 investment specialists EUR EUR 10.0 15.8 % billion client 44.1 return on equity assets under million revenue management (1-9/2016) (1-9/2016 annualized) (9/2016) 1
Slide 3: Highlights of the period
Highlights of the period 1 Assets under management topped 10 billion euros 2 Net subscriptions to Evli’s funds 2nd largest in Finland 3 Evli best asset Manager in TNS Sifo Prospera survey 4 New and acquired entities 5 Efficiency improvements 2
Slide 4: Evli's key figures
Evli’s key figures Revenue (EURm) Return on Equity % (ROE) 64.2 59.7 20.2% 55.5 48.3 18.0% 44.1 46.2 15.8% 15.2% 11.5% 4.3% 2012 2013 2014 2015 2016 1-9 2015 1-9 2012 2013 2014 2015 2016 1-9 2015 1-9 Revenue split, 2016 YTD Operating profit (EURm) & profit margin 13.3 Wealth Management (69%) 9.8 9.2
Slide 5: Market development 1-9/2016
Market development 1-9/2016 102 billion Assets registered in Finnish mutual Funds +2,1 billion Net subscriptions to Finnish mutual Funds -10% Trading volume in Nasdaq Helsinki +4,4 -1,9 +8,8 +13,5 % % % % MSCI World daily MSCI Europe TR OMX Helsinki MSCI Emerging TR gross index Gross CAP_GI markets
Slide 6: Products and services
EVLI Products and services
Slide 7: Development of assets in Evli funds
Development of assets in Evli funds* Development of assets in Evli’s mutual funds, Division of assets in Evli’s mutual funds, 2012–September 30, 2016 (EUR billion) September 30, 2016 5.9 Growth, p.a. Amount Fund type 5.1 0.9 +16% 4.4 0.8 4.1 +16% 0.9 0.7 Fixed Income 3.4 67% Fund 0.5 5.0 4.3 +16% 3.
Slide 8: Performance of Evli's funds
Performance of Evli’s funds* 1 year 3 year 10 year net subscriptions, performance performance performance Morningstar- Fund fund size, m€ m€ (p.a.) (p.a.) (p.a.) rating* Fixed-income funds 3 937,1 508,9 Evli Taktinen Alfa-Korko 32,9 -64,5 3,4 % 2,7 % 0,0 % Evli Yrityslaina 268,2 -6,8 6,7 % 4,2 %
Slide 9: Evli's market share in mutual funds
Evli’s market share in mutual funds* Net Subscriptions Company Total Assets MEUR Market Share Rank Change YTD Unit holders YTD MEUR Nordea Funds Oy 39 786,64 38,8 % 1 1,0 % 1 310 105 1 504,20 OP-Rahastoyhtiö Oy 22 002,03 21,4 % 2 -0,8 % 662 572 -171,72 Danske Invest Rahastoyhtiö Oy 11 630,41 11,3 %
Slide 10: Composition of Evli's Assets under management
Composition of Evli’s Assets under management 9.4 10.0 0.5 0.4 1.4 Growth, p.a. 1.4 (2012 to 2016/9) 7.4 6.9 1.0 6.0 1.1 Direct investments in Evli 3.4 4.0 18% 1.1 funds 3.1 2.8 2.2 Discretionary asset 11% 4.1 4.0 management 2.7 3.0 3.2 2012 2013 2014 2015 2016/9 Discretionary asset management NHC D
Slide 11: Brokerage revenues
10 0% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 55% 45% 44% 56% 44% 56% 55% 45% 42% 58% 40% 60% Brokerage revenues 55% 45% 59% 41% Non-equity broking 55% 45% 56% 44% 58% 42% 46% 54% 52% 48% 50% 50% 46% 54% Equity broking 50% 50% 51% 49% 57% 43% 61% 39%
Slide 12: Evli Corporate Finance – chosen references
Evli Corporate Finance – chosen references July 2016 July 2016 June 2016 June 2016 June 2016 CapMan and other Has successfully completed has successfully completed has successfully completed rights issue shareholders have agreed the acquisition of a convertible bond issue a directed shares issue to
Slide 13: Financial data
Financial data EVLI
Slide 14: Profit and loss statement
Profit and loss statement EURm 2016 1-9 2015 1-9 2015 2014 2013 2012 Net interest 1,3 1,0 1,4 1,0 0,5 3,1 Net commissions 38,8 40,9 57,2 53,1 49,5 43,3 Net income from securities trading and FX 3,9 4,2 5,4 5,2 5,2 1,2 Other operative income 0,1 0,2 0,2 0,4 0,4 0,7 NET REVENUE 44,1 46,2 64,2 59,7 55,
Slide 15: Balance sheet
Balance sheet ASSETS, EURm 30.9.2016 30.9.2015 31.12.2015 Liquid assets 144,7 105,7 128,0 56,4 40,5 38,5 BIS adequacy, % Debt securities eligible for refinancing with central banks Claims on credit institutions 82,0 101,8 119,4 Claims on the public and public sector entities 66,6 53,0 56,0 Debt secu
Slide 16: Key ratios
Key ratios un-audited audited 2016 Q3 2015 Q3 2015 2014 2013 2012 Return on equity-% (ROE) 15,8 % 18,0 % 20,2 % 15,2 % 11,5 % 4,3 % Cost-income ratio 0,82 0,80 0,79 0,84 0,88 0,93 Core BIS capital adequacy, % 16,0 % 13,5 % 19,2 % 15,2 % 13,9 % 14,6 % Earnings/Share, diluted (IFRS)* 0,34 0,28 0,53 0,
Slide 17: Segment profitability
Segment profitability Net revenue Profit before allocations 30.3 11.9 Wealth Management Wealth Management 30.2 12.7 6.5 0.6 Capital Markets Capital Markets 8.9 2.1 3.4 0.8 Corporate Finance Corporate Finance 4.2 1.2 3.8 Group operations and -5.5 Group operations and eliminations -6.7 eliminations 2.
Slide 18: Strategic KPI figures in line with targets
Strategic KPI figures in line with targets Assets under Management (Billion €) Recurring revenues to operational costs 9.4 10.0 100% 0.5 0.4 93% 1.4 90% 1.4 83% 7.4 79% 6.9 1.0 70% 6.0 1.1 4.0 3.4 1.1 3.1 2.8 2.2 4.1 4.0 3.0 3.2 2.7 2012 2013 2014 2015 2016/9 2012* 2013* 2014 2015 2016 1-9 Recurring
Slide 19: Strategic KPI figures in line with targets
Strategic KPI figures in line with targets Net fee income (M€) Return on Equity % (ROE) 57.2 20.2 % 53.1 49.5 15.8 % 15.2 % 38.8 11.5 % 4.3 % 2013 2014 2015 2016 1-9 2012 2013 2014 2015 2016 1-9 Target rate for return Net fee income (M€) Return on Equity -% on Equity -% 18
Slide 20: Cornerstones of Evli strategy – Simply Unique
Cornerstones of Evli strategy – Simply Unique EVLI’s core strenghts and uniqueness are built around: 1) a very strong customer experience (including offering, service and culture) and 2) product excellence, based on innovative spearhead ”institutional investor quality” products, supported by 3) stro
Slide 21: Driving themes
Driving themes • Sales - Ramp up activities in new entities • Introduction of new alternative investment products • Process development • Digitalization 20
Slide 22: Outlook for 2016
Outlook for 2016 “Evli’s business performance has been strong in recent years, and interest in Evli’s services and products is expected to remain stable. In the Corporate Finance business, substantial fluctuations in annual profits are possible. The unit’s mandate base is at a healthy level. The rat
Slide 23: Contact information
Contact information Evli Bank Plc Investor contacts Aleksanterinkatu 19, 4th floor Juho Mikola, CFO P.O. Box 1081 juho.mikola@evli.com 00101 Helsinki Tel. +358 9 4766 9871 www.evli.com Sari Paronen, IR Manager sari.paronen@evli.com Tel. +358 9 4766 9515 Evli - Sijoittajan Pankki Evli Bank Plc @EvliT