Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Shareholder Meeting (May 2023)
46 slides from Kempen European High Dividend Fund N.V. N's shareholder meeting presentation, May 25, 2023
Slide 1: Annual general meeting - Welcome
ee s-Hertogenbosch, 25 May 2023 Annual general meeting Welcome
Slide 2: 1. Opening
1. Opening 2
Slide 3: 2a. Report by the Supervisory Board
2a. Report by the Supervisory Board Item for discussion 3
Slide 4: 2b. Management Report of the Management Board for 2022
2b. Management Report of the Management Board for 2022 Item for discussion 4
Slide 5: The year in review
The year in review Our clients Our employees Our shareholders Society NPS of 36 for Private eNPS of 18 (target >10) Payment of €3.50 per Progress on our 2050 share (capital return: net zero goals, but still a Clients (target 20) lot of work to do Gender pay gap from 4% €1.50 and 2021 dividend: €2.00
Slide 6: 2022: Key financial highlights
2022: Key financial highlights Profitable growth and strong capital position • Net profit of €84.3m • Underlying net profit of €117.8m • Net AuM inflow at €13.7bn • AuM at €107.8bn Medium-term financial targets: • CET 1 ratio at 20.6% (target: 15% + M&A add-on of 2.5%) • RoCET 1 at 12.3% (target: 12
Slide 7: Sustainable and profitable growth with a capital-light balance sheet
Sustainable and profitable growth with a capital-light balance sheet Organic growth Bolt-on acquisitions Market performance
Slide 8: Acquisition of Robeco online investment platform
Acquisition of Robeco online investment platform Positioning Evi van Lanschot for further growth Evi van Lanschot and Robeco The combined activities The future Evi van Lanschot • Online and personal • Become leader in mass- • €1.3bn in AuM • Combined €6.0bn in AuM affluent market • c. 25,000 clients
Slide 9: Navigating through the transitions
Navigating through the transitions 9
Slide 10: Helping our clients to navigate through the transitions
Helping our clients to navigate through the transitions Limit climate change Energy transition Limit and reverse biodiversity loss Food transition Ensure people to live longer and better Materials transition Produce and consume circular 10
Slide 11: Our ambition is to become net-zero
Our ambition is to become net-zero • With regards to the limiting climate change / the energy transition, we have the ambition to become a net-zero wealth manager by 2050 (-50% in 2030). • We therefore have set ambitious annual carbon footprint reduction targets for discretionary AuM (-7%) and our o
Slide 12: Addressing each element of our carbon footprint
Addressing each element of our carbon footprint AuM €107.8bn 2.8 m tCO2e 1 ~ 99% of impact Mortgage portfolio: €6.3bn 28,726 tCO2e 2 ~ 1% of impact 2,775 tCO2 Own organisation: 1,780 FTEs ~ 0.1% of impact 1. based on coverage of 56% of AuM at year-end 2022 ; 2. ‘bubbles’ are not to scale 12
Slide 13: Assets under management
Assets under management Carbon footprint of our AuM 13b. Alignment of our (i) 80% of funds comply 6.0 140 investment solutions with with 7% average annual the Paris Agreement: emission intensity 5.0 120 reduction 100 (ii) 50% of FM clients 4.0 have Paris Agreement 80 3.0 aligned goals 60 13c. Covera
Slide 14: Other milestones in 2022
Other milestones in 2022 • Updated our biodiversity policy and committed ourselves to the Finance for Biodiversity Pledge • Defined a Human Rights policy aligned with the UN Guiding principles. In accordance with this policy, we screen all our investments on whether there are signs of incompliance •
Slide 15: 2022 full-year results
2022 full-year results 15
Slide 16: 2022: Key messages
2022: Key messages Net profit: €84.3m (2021: €143.8m), underlying net profit €117.8m (2021: €159.9m) • Commission income (+6%); stable margins – Private Clients: 63 bps, Wholesale & Institutional Clients: 12 bps • Increase in interest income (+6%) • Operating expenses up (+7%) Net AuM inflow of €13.
Slide 17: Net result amounts to €84.3m
Net result amounts to €84.3m Key drivers of net result (€ m) 9.1 22.3 -26.4 -28.2 -18.6 166.1 -11.7 143.8 143.8 148.7 -5.9 120.5 101.9 90.2 84.3 84.3 2021 Commission Interest Other income Operating One-off Reverse Tax and 2022 income income expenses charge for impairments other** Mercier and NSI* Va
Slide 18: Private Clients: Continued high net inflows
Private Clients: Continued high net inflows AuM (€ bn) 2.0 -6.3 44.8 44.8 40.5 40.5 31/12/2021 Net AuM inflow Market performance 31/12/2022 18
Slide 19: Private Clients: Strong net AuM inflow in Belgium of €0.7bn
Private Clients: Strong net AuM inflow in Belgium of €0.7bn • Van Lanschot Kempen acquired a 70% stake in Mercier Vanderlinden in 2021 and will add the remaining 30% stake in Q1 2023 • Ambition: to become a top-three player in the independent private banking market in Belgium • Van Lanschot Belgium
Slide 20: Wholesale & Institutional Clients: €11.6bn net inflow
Wholesale & Institutional Clients: €11.6bn net inflow AuM (€ bn) 12.0 -0.2 -0.2 -15.2 82.7 82.5 70.9 70.9 67.3 67.3 31/12/2021 Net fiduciary Net investment Net asset class Market 31/12/2022 management strategies solutions inflows performance inflows inflows 20
Slide 21: Stable margins at both Private Clients and Wholesale & Institutional Clients
Stable margins at both Private Clients and Wholesale & Institutional Clients Annualised recurring fees* (€ m) 359.5 339.8 306.9 329.6 270.3 YE2020 HY2021 YE2021 HY2022 YE2022 • Stable AuM margins: Private Clients: 63 bps (2021: 62 bps); Wholesale & Institutional Clients: 12 bps (2021: 12 bps) 21
Slide 22: Investment Banking Clients: Stable commission income in challenging markets
Investment Banking Clients: Stable commission income in challenging markets Commission income (€ m) 55.3 56.0 48.9 2020 2021 2022 22
Slide 23: Interest margins improved in H2 2022
Interest margins improved in H2 2022 Interest income (€ m) Interest margin (12-mth moving average, %) 93.0 1.01% 0.98% 0.95% 77.0 75.1 76.1 77.5 69.7 0.88% 0.94% 0.92% 0.94% 0.86% H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2021 H2 2021 H1 2022 H2 2022 Clean interest margin* Interest margin *
Slide 24: Operating expenses developed in line with organic and inorganic growth
Operating expenses developed in line with organic and inorganic growth Operating expenses (€ m) 20.5 7.2 0.6 430.4 437.6 438.2 409.9 409.9 2021 Staff costs Mercier Vanderlinden Other 2022 24
Slide 25: Loan portfolio
Loan portfolio €m Loan Loan % change Impaired Provision Impaired Coverage portfolio portfolio loans ratio ratio 31/12/2022 31/12/2021 Mortgages 6,341 6,337 0% 24 1 0.4% 6% Other loans 2,371 2,199 8% 82 25 3.5% 31% Loan portfolio 8,712 8,536 2% 106 27 1.2% 25% Mortgages distributed by third parties 3
Slide 26: Strong CET 1 ratio at 20.6%
Strong CET 1 ratio at 20.6% Dividend proposal of €1.75 per share (total €74.2m) Common Equity Tier 1 ratio (%) -2.8 1.1 -1.4 23.7 20.9 19.5 19.5 20.6 31/12/2021 DNB Capital return Other 31/12/2022 Mortgage floor Expected CET 1 ratio developments in 2023: • Impact of +0.8 percentage points related to
Slide 27: Solid capital position
Solid capital position Continued commitment to return excess capital • Our target for the CET 1 ratio: 15% plus an M&A add-on of 2.5% • At the time of announcement of the target, excess capital amounted to €145m (May 2022) • €61m excess capital returned in December 2022 • Plan to return €2.00 per sh
Slide 28: Financial targets overview
Financial targets overview Common Equity Tier 1 ratio Dividend pay-out ratio* 50-70% 15% + 2.5% 23.8% 24.3% 23.7% 21.1% 20.6% 65% 67% 61% 57% 53% 2018 2019 2020 2021 2022 Medium 2018 2019 2020 2021 2022 Medium term term Efficiency ratio Return on Common Equity Tier 1* 70.0% 12.0% 79.4% 85.7% 75.5% 6
Slide 29: Q1 2023
Q1 2023 29
Slide 30: Q1 2023: Key messages
Q1 2023: Key messages • Solid quarterly result; slight decrease compared with Q1 2022, reflecting strong results at Private Clients, reduced profits at Investment Banking Clients and a lower result from financial transactions • Strong net AuM inflows of €2.2 billion, with €1.3 billion at Private Cli
Slide 31: 3. 2022 Remuneration Report
3. 2022 Remuneration Report Item for an advisory vote 31
Slide 32: 4a. Adoption of the 2022 Financial Statements
4a. Adoption of the 2022 Financial Statements Voting item 32
Slide 33: 4b. Adoption of a cash dividend of €1.75 per Class A ordinary share
4b. Adoption of a cash dividend of €1.75 per Class A ordinary share Voting item 33
Slide 34: 5a. Discharge of the members of the Management Board
5a. Discharge of the members of the Management Board from liability for their management in the 2022 financial year Voting item 34
Slide 35: 5b. Discharge of the members of the Supervisory Board
5b. Discharge of the members of the Supervisory Board from liability for their supervision of the management conducted in the 2022 financial year Voting item 35
Slide 36: 6a. Reappointment of PwC as external auditor for 2024
6a. Reappointment of PricewaterhouseCoopers Accountants NV (PwC) as the external auditor for the 2024 financial year Voting item 36
Slide 37: 6b. Appointment of KPMG as external auditor for 2025
6b. Appointment of KPMG Accountants NV (KPMG) as the external auditor for the 2025 financial year Voting item 37
Slide 38: 7a. Notice of vacancies and profiles
7a. Notice of vacancies and profiles; opportunity to make a recommendation Voting item if a recommendation is made 38
Slide 39: 7b. Reappointment of Frans Blom to the Supervisory Board
7b. Reappointment of Frans Blom as a member of the Supervisory Board Voting item 39
Slide 40: 7c. Appointment of Elizabeth Nolan to the Supervisory Board
7c. Appointment of Elizabeth Nolan as a member of the Supervisory Board Voting item 40
Slide 41: 7d. Announcement of the vacancy at the 2024 annual general meeting
7d. Announcement of the vacancy that will arise at the annual general meeting in 2024 Item for discussion 41
Slide 42: 8. Authorisation to purchase shares in own capital
8. Authorisation to purchase shares in own capital or depositary receipts for those shares Voting item 42
Slide 43: 9a. Designation of the Management Board to issue ordinary shares
9a. Designation of the Management Board as the competent body to issue ordinary shares Voting item 43
Slide 44: 9b. Designation to limit or exclude pre-emptive rights
9b. Designation of the Management Board as the competent body to limit or exclude the pre-emptive right when ordinary shares are issued Voting item 44
Slide 45: 10. Any other business and closure of meeting
10. Any other business and closure of meeting 45
Slide 46: Thank you
ee s-Hertogenbosch, 25 May 2023 Annual general meeting Thank you