Leonteq Ag · SIX:LEON
Leonteq — H1 2024 Earnings Presentation
24 slides from Leonteq's earnings presentation, Jul 25, 2024
Slide 1: Leonteq AG Half-Year 2024 Results
LEONTEQ AG HALF-YEAR 2024 RESULTS Zurich, 25 July 2024 1
Slide 2: Agenda
H A L F -Y E A R 2 0 2 4 R E S U LTS AGENDA 01 02 03 Highlights & Financial Transformation Business update performance 2018 - today 2
Slide 3: Highlights & Business Update
H A L F -Y E A R 2 0 2 4 R E S U LTS HIGHLIGHTS & BUSINESS UPDATE LU K A S R U F L I N | C EO 3
Slide 4: Market trends in H1 2024 similar to 2023
H A L F -Y E A R 2 0 2 4 R E S U LTS Market trends in H1 2024 similar to 2023 Further decline in Continued high Swiss franc Relatively stable market volatility interest rates1 trading lower1 credit spreads1 (CBOE Volatility index1, USD) 30 2023 6% 2023 1.10 2023 0.12% 2023 H1 2024 H1 2024 H1 2024 H1
Slide 5: Strong client franchise demonstrated by record high platform activity
H A L F -Y E A R 2 0 2 4 R E S U LTS Strong client franchise demonstrated by record high platform activity Turnover by issuer category Number of client Number of issued products (thousands) (CHF billion) transactions +66% (thousands) +48% +30% 15.8 4.2 11.8 3.1 9.5 2.8 146 24 2.9 2.4 20 18 1.9 98 99
Slide 6: Well positioned as interest outlook improves and markets for structured products are set to recover
H A L F -Y E A R 2 0 2 4 R E S U LTS Well positioned as interest outlook improves and markets for structured products are set to recover 32% growth in net fee 67% growth to 5,181 Profitability restored with income to CHF 117.9 products issued via LYQNS Group net profit of CHF million compared to H2
Slide 7: Financial Performance
H A L F -Y E A R 2 0 2 4 R E S U LTS FINANCIAL PERFORMANCE HANS WIDLER | CFO 7
Slide 8: Solid performance in H1 2024 despite continued challenging market conditions
H A L F -Y E A R 2 0 2 4 R E S U LTS Solid performance in H1 2024 despite continued challenging market conditions Total operating income Total operating Group net profit (CHF million) expenses (CHF million) (CHF million) +18% +1% CHF +23.9m 28.8 147.1 15.7 133.4 112.9 121.9 119.7 120.5 -8.2 H1 2023
Slide 9: Growth in topline vs H2 2023 driven by increase in net fee income
H A L F -Y E A R 2 0 2 4 R E S U LTS Growth in topline vs H2 2023 driven by increase in net fee income Net fee income Net trading income Leonteq performance (H1 2024 vs. H2 2023) (CHF million) (CHF million) • 66% growth in turnover to CHF 15.8 billion (including CHF 1.7 billion in exceptional +32% t
Slide 10: 10% cost benefits to total operating expenses for 2025; focused investments in key initiatives to continue
H A L F -Y E A R 2 0 2 4 R E S U LTS 10% cost benefits to total operating expenses for 2025; focused investments in key initiatives to continue Total operating expenses Cost measures implemented (CHF million) • Stricter approach to new hiring and replacements; used natural fluctuation to H1 2024 rep
Slide 11: Sound balance sheet underpinned by strong capital
H A L F -Y E A R 2 0 2 4 R E S U LTS Sound balance sheet underpinned by strong capital Balance sheet 30.06.2024 31.12.2023 Change Cash and receivables increased due to higher (CHF million) transaction volumes Cash and receivables 1,240 918 35% Trading financial assets1 & Derivatives 2 Trading financ
Slide 12: Increase in capital base mainly driven by positive OCI impacts
H A L F -Y E A R 2 0 2 4 R E S U LTS Increase in capital base mainly driven by positive OCI impacts Capital base1 (CHF million) 57.0 1.5 34.7 -17.6 15.7 • Currency translation adjustment of CHF +22 m 871.4 • Unrealised income related to debt 812.9 814.4 814.4 780.1 instruments 778.2 at fair 762.5 76
Slide 13: Transformation 2018 - Today
H A L F -Y E A R 2 0 2 4 R E S U LTS TRANSFORMATION 2018 - TODAY LU K A S R U F L I N | C EO 13
Slide 14: Shareholders' equity strengthened and attractive returns to shareholders delivered
H A L F -Y E A R 2 0 2 4 R E S U LTS Shareholders’ equity strengthened and attractive returns to shareholders delivered Capital base significantly strengthened Shareholders’ equity (CHF million) • Enhancing financial solidity • Supporting business growth • Allowing strategic investments (186) (57) S
Slide 15: Offering expanded beyond traditional structured products
H A L F -Y E A R 2 0 2 4 R E S U LTS Offering expanded beyond traditional structured products Historic franchise centered on (equity linked) structured investment products Economic revenues1 • In 2018, market was characterised by intensified competitive environment, declining by type of business mar
Slide 16: Leonteq's position improved and issuer network significantly expanded
H A L F -Y E A R 2 0 2 4 R E S U LTS Leonteq’s position improved and issuer network significantly expanded Turnover by issuer category Improved Leonteq’s standalone profile: (CHF billion) • Obtained solid investment grade credit ratings • Improved ESG rating to best-in-class levels 15.9 15.8 • Fundi
Slide 17: Client segments broadened with refocused target markets
H A L F -Y E A R 2 0 2 4 R E S U LTS Client segments broadened with refocused target markets Improved client diversification which SIX listed market turnover in structured products1 was concentrated on independent asset managers, family offices and H1 2018 H1 2024 brokers • Increased brand awareness
Slide 18: Platform scalability enhanced and invested in digital client solutions
H A L F -Y E A R 2 0 2 4 R E S U LTS Platform scalability enhanced and invested in digital client solutions Number of client Invested in state-of-the-art infrastructure transactions Agile approach to product management and product organisation 3 million documents created per Collaboration with Googl
Slide 19: Organisation, risk management & control framework strengthened
H A L F -Y E A R 2 0 2 4 R E S U LTS Organisation, risk management & control framework strengthened Renewed Board and Management Team • Board diversified with increased independence Governance/ICS framework • Executive Committee and senior management team additions Board of Directors Strengthened le
Slide 20: Share price performance vs book value development
H A L F -Y E A R 2 0 2 4 R E S U LTS Share price performance vs book value development Leonteq share price vs book value (in CHF)1 80 60 53.3 46.2 40 27.7 22.3 20 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 May-24 Share price Book value 1 Source: Refinitiv, 20
Slide 21: Appendix
H A L F -Y E A R 2 0 2 4 R E S U LTS 21 APPENDIX
Slide 22: Group results
H A L F -Y E A R 2 0 2 4 R E S U LTS Group results Income Statement H1 2024 H2 2023 H1 2023 Change vs H1 Change vs H2 (CHF million) Net fee income 117.9 89.3 123.9 (5%) 32% Net trading result 11.2 18.8 17.8 (37%) (40%) Net interest result 2.9 3.2 3.3 (12%) (9%) Other operating income 1.4 1.6 2.1 (33
Slide 23: KPIs & Business metrics
H A L F -Y E A R 2 0 2 4 R E S U LTS KPIs & Business metrics KPIs H1 2024 H2 2023 H1 2023 Change vs H1 Change vs H2 Cost-income ratio 90% 106% 83% 7 PP (16 PP) Return on equity (annualised) 4% (2%) 7% (3 PP) 6 PP Earnings per share (CHF) 0.89 (0.44) 1.59 (44%) n/a Book value per share (CHF)1 46.2 44
Slide 24: Leonteq
ti LEONTEQ