Leonteq Ag · SIX:LEON
Leonteq — H1 2023 Earnings Presentation
21 slides from Leonteq's earnings presentation, Jul 20, 2023
Slide 1: Leonteq AG Half-Year 2023 Results
LEONTEQ AG HALF-YEAR 2023 RESULTS ZURICH, 20 JULY 2023 3
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, documents and information used therein or distributed in the context of this presentation do not constitute or form part of and
Slide 3: Highlights & Business Update
HIGHLIGHTS & BUSINESS UPDATE LUKAS RUFLIN | CEO
Slide 4: Navigating through challenging markets in the first half of 2023
NAVIGATING THROUGH CHALLENGING MARKETS IN THE FIRST HALF OF 2023 Client franchise remained strong with 36% rise in new issued products year on year (albeit with lower average ticket size) Total turnover remained stable at CHF 11.8 billion year-on-year with strong contribution from new partners (+60%
Slide 5: Market environment H1 2023: lower volatility, continued inflationary pressure and interest rate hikes
MARKET ENVIRONMENT H1 2023: LOWER LEVELS OF VOLATILITY, CONTINUED INFLATIONARY PRESSURE AND CORRESPONDING INTEREST RATE HIKES CBOE Volatility Index1 Interest rates1 SIX Swiss Exchange turnover in (USD) structured products2 CHF EUR USD (CHF billion) 40 2022 2022 6 6% 2023 2023 35 5% 5 30 4% 4 3% 25 3
Slide 6: Leonteq continues to focus on the four strategic pillars of its Growth Strategy 2026
LEONTEQ CONTINUES TO FOCUS ON THE FOUR STRATEGIC PILLARS OF ITS GROWTH STRATEGY 2026 Strategic pillars Update H1 2023 KPIs • New growth initiatives: Stable revenues from the asset management- Revenues from new business initiatives (in %) ~ like business; solid development of balance sheet-light and
Slide 7: Our ecosystem for investment solutions
OUR ECOSYSTEM FOR INVESTMENT SOLUTIONS Self Private Regional Universal directed banks banks banks investors +5 partners sp.leonteq.com Independent asset Institutional managers investors Family offices Digital solutions & Clients & connectivity investors Content, White- product and labelling technolo
Slide 8: Financial Performance
FINANCIAL PERFORMANCE MARCO AMATO | DEPUTY CEO & CFO
Slide 9: Group net profit of CHF 28.8 million in the first half of 2023
GROUP NET PROFIT OF CHF 28.8 MILLION IN THE FIRST HALF OF 2023 Total operating income1 Total operating expenses Profit before taxes Group net profit (CHF million) (CHF million; bubble: cost- (CHF million) (CHF million) income ratio) 289.2 173.6 167.2 145.8 147.1 61.2 23.2 118.0 143.4 119.7 121.9 115
Slide 10: Solid levels of client activity
SOLID LEVELS OF CLIENT ACTIVITY Number of clients1 Net fee income by region Economic revenues2 (excluding hedging (CHF million) result; CHF million) -1% 137.9 133.3 123.9 115.6 106.0 97.7 56.4 48.2 73.2 51.4 53.9 48.1 896 890 13.0 13.3 12.5 76.9 62.7 64.7 50.9 49.6 39.6 H1 2022 H1 2023 H1 2022 H2 20
Slide 11: Increase in contribution from new partners
INCREASE IN CONTRIBUTION FROM NEW PARTNERS Number of issued products Turnover Turnover by issuer category1 (thousand) (CHF billion) -2% +36% 29% 26% 26% 12% 15% 20% 19.8 12.1 11.8 11.0 14.5 14.3 59% 59% 54% H1 2022 H2 2022 H1 2023 H1 2022 H2 2022 H1 2023 H1 2022 H2 2022 H1 2023 Historic partners New
Slide 12: Commitment to invest in key strategic priorities
COMMITMENT TO INVEST IN KEY STRATEGIC PRIORITIES Total operating expenses FTEs Focus on Growth Strategy 2026 (CHF million) • Continued investments in key strategic initiatives to drive our 143.4 119.7 121.9 608 Growth Strategy 2026, including 2% 2% 582 9% 558 investments in LynQs, AMC Gateway 14% 14
Slide 13: Sound capital base maintained
SOUND CAPITAL BASE MAINTAINED Capital base1 (CHF million) Update on share buyback as of 30 June 2023 • The share buyback programme started on 3 April 2023 and is expected to complete end-2023 62.1 • 127,250 shares purchased with total -78.2 buyback value of CHF 5.8 million 28.8 • Equivalent of 32% o
Slide 14: Summary
ote tS CEONTEQ SUMMARY LUKAS RUFLIN | CEO
Slide 15: Strong client franchise and profitable business
STRONG CLIENT FRANCHISE AND PROFITABLE BUSINESS Equity Story B2B/B2B4C/D2C business model with unique ecosystem for investment solutions Technology-leading structured products platform Strong client franchise across EMEA and APAC Improved earnings quality due to increased diversification Strong capi
Slide 16: Appendix: Financial Results
ote tS CEONTEQ APPENDIX FINANCIAL RESULTS
Slide 17: Group Results
GROUP RESULTS Income Statement H1 2023 H2 20221 H1 20221 Change Change (CHF million) vs H1 2022 vs H2 2022 Net fee income 123.9 106.0 115.6 7% 17% Net trading result 17.8 57.3 179.4 (90%) (69%) Net interest result 3.3 (0.3) (7.7) N/A N/A Other ordinary income 2.1 4.2 1.9 11% (50%) Total operating in
Slide 18: Business Metrics (1/2)
BUSINESS METRICS (1/2) (CHF billion, unless otherwise stated) H1 2023 H2 2022 H1 2022 Change Change vs H1 2022 vs H2 2022 Economic revenues excl. hedging result (CHFm) 133.3 97.7 137.9 (3%) 36% of which from new business initiatives (CHFm) 56.4 48.1 73.2 (23%) 17% of which from traditional business
Slide 19: Business Metrics (2/2)
BUSINESS METRICS (2/2) (CHF million, unless otherwise stated) H1 2023 H2 2022 H1 2022 Change Change vs H1 2022 vs H2 2022 Net fee income 123.9 106.0 115.6 7% 17% of which Switzerland 48.2 53.9 51.4 (6%) (11%) of which Europe 62.7 39.6 50.9 23% 58% of which Asia (incl. Middle East) 13.0 12.5 13.3 (2%
Slide 20: Quarterly economic revenues since inception
QUARTERLY ECONOMIC REVENUES SINCE INCEPTION Quarterly economic revenues (CHF million)1 220 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 Economic revenues are defined as fee income and trading income earned and are considered
Slide 21: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Dominik Ruggli Leonteq AG Head Investor Relations, Investor Relations Communications & Marketing Europaallee 39 | 8004 Zürich | Switzerland +41 58 800 18 55 investorrelations@leonteq.com www.leonteq.com/investors Follow Us Linkedin Twitter Renato Bolliger Facebook Investo