Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (August 2019)
34 slides from Cembra Money Bank's investor presentation, August 2019
Slide 1: Cembra is evolving
Cembra is evolving A leading player in consumer finance and cards Investor presentation, August 2019 Page Cembra Money Bank
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Acquisition of cashgate 4. Outlook Appendix Page 2 August 2019 Investor presentation Cembra Money Bank
Slide 3: Cembra at a glance
Cembra at a glance Cembra at a glance A leading player in consumer finance and cards Who we are Key figures (H1 2019) 2% Revenues (CHF) ■ Independent consumer finance specialist exclusively Personal loans Auto 37% operating in Switzerland 39% H1 19: Cards 222mn Other ■ Strong market positions in per
Slide 4: Strong market positions
Cembra at a glance Strong market positions 911,000 customers in Switzerland (+5% in H1 2019) Personal loans: 33% market share Auto business: 17% market share Credit cards: 13% market share Cembra Captives Independent Cembra Money • AMAG Leasing • Bank-now Money Bank Bank • BMW • Cashgate (33%) (13%)
Slide 5: Track record
Cembra at a glance Track record Delivered on all targets since the IPO IPO targets (Oct. 2013) 2015 2016 2017 2018 H1 2019 Net customer loan growth to Asset growth be moderate and in line with (0.3)% 0.9% 12.0% 5.4% 5.4% Swiss GDP growth Organic: 4.0% Profitability ROE target of at least 15% 17.7% 1
Slide 6: Cembra is evolving
Cembra at a glance Cembra is evolving Continued growth in cards and new businesses expected 2018 pro forma 2010 2014 2018 incl. cashgate Aspiration 2% 1% Business mix 8% in % of net revenues 22% 23% 37% 31% Personal loans 39% 44% Auto 58% 69% 20% Cards Other 22% 24% Fee income 21% 21% 30% 28% in % o
Slide 7: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Acquisition of cashgate 4. Outlook Appendix Page 7 August 2019 Investor presentation Cembra Money Bank
Slide 8: H1 2019 performance
H1 2019 results H1 2019 performance Good momentum in auto and continued growth in cards Highlights Net financing receivables Return on equity Target for assets growth: in line with Target ROE: >15% ■ Positive business performance Swiss GDP growth. In CHF mn +4% with net income CHF 78.6mn ■ +5% net r
Slide 9: Market environment
H1 2019 results H1 2019 products and markets Personal loans & auto in line with market, cards outperforming Personal loans Auto loans and leases Credit cards Consumer loans market, in CHF bn New car registrations, in 1,000 cars Transaction volumes, in CHF bn (first six months of year) (first four mo
Slide 10: H1 2019 operational highlights
H1 2019 results H1 2019 operational highlights Key investments and projects on track Maintain momentum Invest in the future ■ Maintain positioning in auto business ■ Investing in digitisation on track • Execution on partnerships ongoing • Implemented CRM platform as basis for cross- • 4’000 car deal
Slide 11: H1 2019 P&L
H1 2019 results H1 2019 P&L Income statement H1 2019 H1 2018 % Comments In CHF mn Interest income 165.8 162.2 2 1 Higher interest income is in line with growth of Interest expense -10.7 -10.1 6 financing receivables; higher income in credit Net interest income 1 155.1 152.1 2 cards, partly offset by
Slide 12: H1 2019 Net revenues by source
H1 2019 results H1 2019 Net revenues by source +5% growth in H1 2019 In CHF mn Revenue by source Personal loans Auto lease and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +5% +1% +4% +10% 222.6 1,913 2,062 1,036 213.0 1,885 1,974 940 67.6 60.9 31.
Slide 13: H1 2019 Operating expenses
H1 2019 results H1 2019 Operating expenses Income statement H1 2019 H1 2018 % Comments In CHF mn Compensation and benefits 1 56.9 52.8 8 1 10% year-on-year increase in FTE for organic growth and business expansion Professional services 2 8.8 7.4 19 Marketing 3 4.7 4.4 7 2 Driven by strategic initiat
Slide 14: H1 2019 Balance sheet
H1 2019 results H1 2019 Balance sheet Assets 30.06.19 31.12.18 % Comments In CHF mn Cash and equivalents 1 414 499 -17 1 Cash decreased due to business growth and dividend payment in April 2019 Net financing receivables 2 5,023 4,807 4 Personal loans 1,913 1,885 1 2 Net financing receivables were up
Slide 15: Continuous diversified funding
H1 2019 results Funding Continuous diversified funding Funding mix Funding programmes In CHF mn1 Senior unsecured • Eight issuances of between CHF 50mn 4,504 4,329 to CHF 200mn each Non-Deposits – 34% 4,052 1,102 1,101 • WA2 remaining term of 4.0 yrs/avg. rate of 0.49%4 926 450 400 400 ABS • Two AAA
Slide 16: Funding of cashgate
H1 2019 results Funding of cashgate ~70% of bridge facility already re-financed in July 2019 Capital market transactions since 1 July 2019 Funding post transaction CHF mn -72% 1,450 ■ S&P A– rating maintained, -102 outlook changed to negative -150 from stable -250 -425 400 ■ Repayment of remaining b
Slide 17: H1 2019 Provision for losses
H1 2019 results H1 2019 Provision for losses Stable loss performance Provision for losses 30+ days past due/NPL In CHF mn 4% Reported 3% 30+ days past due 2.0% 2.0% 1.9% 1.9% 2.0% Adjusted for one-off¹ 2% Non-performing loans (NPL)³ 1% 0.5% 0.4% 0.4% 0.5% 0.6% 21.7 23.9 22.0 0% 20.8 21.1 19.2 Jun'15
Slide 18: Strong capital position
H1 2019 results Strong capital position 18.8% Tier 1 ratio Tier 1 capital walk1 Risk-weighted assets In CHF mn In CHF mn 18.8% 4 4.4% 19.2% 76 855 834 0 39 Excess 2 -55 Capital 4,346 4,536 816 834 31.12.2018 30.6.2019 31.12.2018 Statutory Ordinary Others 30.06.2019 net income dividend Per share data
Slide 19: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Acquisition of cashgate 4. Outlook Appendix Page 19 August 2019 Investor presentation Cembra Money Bank
Slide 20: Cashgate & Cembra
Acquisition of cashgate Cashgate & Cembra An excellent strategic fit Key strategic objectives Defend the core GainGain size through size through external Defend the core Build the future business Build the future external growth andgrowth diversify& business diversify ■ Maintain market position ■ CR
Slide 21: Transaction rationale
Acquisition of cashgate Transaction rationale A value-enhancing move with Attractive credit portfolio Broad product offering People • Complementary • Values & culture • Sizeable • Strong online • Skills and • Profitable presence experience Significant scale benefits Optimised balance sheet Profitabl
Slide 22: 2018 pro forma key financials
Acquisition of cashgate 2018 pro forma key financials cashgate an established player in personal loans & auto About cashgate AG 2018 pro forma key figures FY 2018 FY 2018, US GAAP, CHF mn and aligned with Cembra financial state- ment presentation and accounting reserving/write off standards ■ Top 5
Slide 23: Commercial implications
Acquisition of cashgate Commercial implications Consolidate Cembra’s positions in personal loans & auto Personal loans: Auto: Leverage distribution and Tap into new segments Consolidate businesses improve customer experience Return (pricing) Return (pricing) Distribution 10% ■ Combine cashgate AG an
Slide 24: Operating implications
Acquisition of cashgate Operating implications Fast integration using cashgate’s skills and systems Consolidate branch network Integrate businesses by 2020 Combine systems and cultures 2019 2020 Systems Q3 Q4 Q1 Q2 Q3 Q4 ■ Use Cembra core system and Business services (Finance/HR/etc) Integration ■ O
Slide 25: Financing implications
Acquisition of cashgate Financing implications Maintain balanced funding profile RWA (estimated) ■ Revised Tier 1 target capital ratio of 17%1 (from 18%) In CHF bn • Estimated RWA of CHF 5.8bn at year-end 2019 5.8 • Cembra targets S&P rating A- post transaction 4.3 ■ Overall financing backed by a co
Slide 26: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Acquisition of cashgate 4. Outlook Appendix Page 26 August 2019 Investor presentation Cembra Money Bank
Slide 27: Outlook and guidance
Outlook Outlook and guidance 2019 outlook and mid-term aspiration confirmed 2019 Outlook Aspiration 2020 and beyond2 ■ Cembra pre-transaction on track to deliver 1 ROE target > 15% on previous guidance for 2019 (no change) • Moderate revenue growth • Stable loss performance 2 Tier 1 capital ratio ta
Slide 28: Agenda
Agenda 1. Cembra at a glance 2. H1 2019 results 3. Acquisition of cashgate 4. Outlook Appendix Page 28 August 2019 Investor presentation Cembra Money Bank
Slide 29: History
Appendix History IPO in 2013 Foundation – “Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction E. Uldry & Cie” in Fribourg Migros partnership and institutions in CH Exchang
Slide 30: Asset quality history
Appendix Asset quality history Loss rate Delinquencies 4.0% 3.0% 30+ days past due 1,1 1,1 1,1 2.0% 1,0 1,0 1.0% Non-performing loans (NPL)1 0.0% 2014 2015 2016 2017 2018 Write-off performance by year of origination2 Credit grades³ 6.0% 2007 2% 100% 2008 13% 5.0% 2009 80% 2010 29% 4.0% 2011 60% 3.0%
Slide 31: Key figures since 2010
Appendix Key figures since 2010 IPO H1 US-GAAP 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net revenues (CHF mn) 349 338 356 355 379 389 394 396 439 223 Net income (CHF mn) 129 131 133 133 140 145 144 145 154 79 Cost/income ratio (%) 47.01 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 46.5 Net fin r
Slide 32: The Cembra share
Appendix The Cembra share Shareholder structure: 98% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30mn, in % Own shares Others 2% ~10,000 registered UK 8% 16% private shareholders 8% EU excl UK 10% 54% Switzerland 20% 82% US incl. CDN ~500 institutional investor
Slide 33: Cautionary statement regarding forward-looking statements
Appendix Cautionary statement regarding forward- looking statements This presentation by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group‘s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financi
Slide 34: Calendar and further information
Calendar and further information Visit us on www.cembra.ch/investors Calendar Corporate events 21 February 2020 FY 2019 results 16 April 2020 Annual General Meeting 2020 Roadshows and conferences 26 August 2019 Roadshow Zürich 29 August 2019 Vontobel Best of Banking Conference, Zürich 9 September 20
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