Slide 1: Leonteq AG Full-Year 2024 Results
LEONTEQ AG FULL-YEAR 2024 RESULTS Zurich, 6 February 2025 1
Slide 2: Agenda
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS AGENDA 01 02 03 04 Key Financial New enhanced Outlook take aways performance regulatory regime 2
Slide 3: Key Take Aways
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS 3 KEY TAKE AWAYS
Slide 4: 2024 take aways
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS 2024 take aways Disappointing profitability Dividend in line with capital Closure of regulatory matters in 2024 return policy by lead regulator • Profit before taxes of CHF 7.9 • Dividend of CHF 0.25 to be • FINMA concluded investigations million (202
Slide 5: Strong client franchise with record platform activity and growth in new business initiatives
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Strong client franchise with record platform activity and growth in new business initiatives Number of client Number of issued products Economic revenues from transactions and click ‘n’ trade ratio new business initiatives (thousands) (CHF million) +4
Slide 6: New enhanced regulatory regime
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS New enhanced regulatory regime 01 Effective 1 January 2025, Leonteq is subject to enhanced capital and large exposure requirements Provides a widely understood regulatory framework and further strengthens Leonteq’s 02 risk profile for its clients, whi
Slide 7: New regulatory regime takes into account Leonteq's growth and the evolution of its business model
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS New regulatory regime takes into account Leonteq’s growth and the evolution of its business model Turnover Outsourcing partner to Recognised counterparty (CHF billion) numerous large and mid- for structured products size banks in Switzerland CAGR: +14
Slide 8: Financial Performance
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS 8 PERFORMANCE FINANCIAL
Slide 9: Market environment remained challenging throughout 2024
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Market environment remained challenging throughout 2024 No sustainable recovery in market volatility Slight reduction in interest rates1 (CBOE Volatility index1, USD) 50 8% 2022 2023 2024 2022 2023 2024 40 6% 30 4% 20 2% 10 0% 0 -2% SARON €STR SOFR 1
Slide 10: Leonteq gained market share as structured products market started to rebound
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Leonteq gained market share as structured products market started to rebound SSPA turnover1 SIX listed market turnover2 Leonteq platform market share2,3 (CHF billion) (CHF billion) 14 2024 221 +9% 12.1 Total market 196 12 0.2 2023 #3 180 +13% 54 28 10
Slide 11: Strong growth in turnover paired with competition-driven margin pressure resulted in stable net fee income
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Strong growth in turnover paired with competition- driven margin pressure resulted in stable net fee income Net fee income by regions Leonteq performance (2024 vs. 2023) Turnover by issuer category (CHF billion) (CHF million) • Turnover from products
Slide 12: Lower earnings mainly driven by a decrease in net trading result and one-off provisions
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Lower earnings mainly driven by a decrease in net trading result and one-off provisions Income statement Change Leonteq performance (2024 vs. 2023) 2024 2023 (CHF million) YoY • Net trading result decreased to CHF 21.5 Net fee income 214.4 213.2 1% mi
Slide 13: Sound balance sheet underpinned by strong capital
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Sound balance sheet underpinned by strong capital Balance sheet 31.12.2024 31.12.2023 Change Cash and receivables increased due to higher (CHF million) transaction volumes Cash and receivables 1,086 918 18% Trading financial assets1 & Derivatives 2 Tr
Slide 14: New Enhanced Regulatory Regime
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS 14 REGULATORY ENHANCED REGIME NEW
Slide 15: Widely understood regulatory framework that further strengthens Leonteq's risk profile for its stakeholders
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Widely understood regulatory framework that further strengthens Leonteq’s risk profile for its stakeholders Newly appplicable regime Impact Change to business activities Total capital ratio of Broad range of structured products with a Reduction of pro
Slide 16: New regime enables efficient capital management and reduces capital charges for Leonteq's counterparties
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS New regime enables efficient capital management and reduces capital charges for Leonteq’s counterparties Benefits Impact Leonteq will be allowed to issue and account for hybrid capital, should it choose to do so Ability to issue hybrid This new measur
Slide 17: Phase-in of regulatory regime and sequence of disclosures
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Phase-in of regulatory regime and sequence of disclosures 06.2024 12.2024 06.2025 12.2025 06.2026 12.2026 Large Preparation Fully implemented exposure • Implementation of • Optimisation of exposures towards largest counterparties standardised approach
Slide 18: Measures to address the expected reduction over time in platform turnover with existing white-labelling partners
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Measures to address the expected reduction over time in platform turnover with existing white-labelling partners Actively manage turnover and hedging Cost rightsizing programme exposure limits • Increase its balance sheet light business with its exist
Slide 19: Outlook
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS 19 OUTLOOK
Slide 20: Leonteq to become a more focused and profitable business with a further diversified revenue base
L EO N T EQ F U L L -Y E A R 2 0 2 4 R E S U LTS Leonteq to become a more focused and profitable business with a further diversified revenue base Capital to be freed up and returned to Earnings guidance for 2025 shareholders • Leonteq will continue to focus on harvesting from its key • During the pe
Slide 21: Christian Spieler appointed as CEO, effective 1 March 2025
F U L L -Y E A R 2 0 2 4 R E S U LTS Christian Spieler appointed as CEO, effective 1 March 2025 Professional experience 2022 – 02.2025 Bain & Company: External advisor 2022 – 02.2025 2RSq Services, London: Senior advisor 2008 – 2021 Citigroup Global Markets, Frankfurt • Member of the Executive Board
Slide 22: ti LEONTEQ
ti LEONTEQ