Leonteq Ag · SIX:LEON
Leonteq — Octavian Seminar 2020
21 slides from Leonteq's conference presentation, Jan 16, 2020
Slide 1: Octavian Seminar 2020 – Leonteq AG Presentation
16 JANUARY 2020 OCTAVIAN SEMINAR 2020 LEONTEQ AG | PRESENTATION
Slide 2: Legal Disclaimer
OCTAVIAN SEMINAR 2020 14 JANUARY 2020 LEGAL DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, docu- ments and information used therein or distributed in the context of this presentati
Slide 3: Agenda
AGENDA OCTAVIAN SEMINAR 2020 14 JANUARY 2020 • OUR BUSINESS & STRATEGY • OUR PERFORMANCE • SUMMARY 3
Slide 4: Our Business & Strategy
OCTAVIAN SEMINAR 2020 14 JANUARY 2020 OUR BUSINESS & STRATEGY 4
Slide 5: Our Business: Experts in Structured Products and Savings Solutions
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 OUR BUSINESS EXPERTS IN STRUCTURED PRODUCTS AND SAVINGS SOLUTIONS PEOPLE TWO DISTINCT BUSINESS LINES ~ 500 EMPLOYEES FROM >50 NATIONS 11%* • Founded in 2007 INSURANCE & WEALTH PLANNING SOLUTIONS • IPO in 2012 • Market cap of around CHFbn 0.6 11 OFFICES 89%* IN 1
Slide 6: Transformation of Business Model
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 TRANSFORMATION OF BUSINESS MODEL LEADING MARKET PLACE FOR STRUCTURED INVESTMENT SOLUTIONS PHASE 1 • Differentiate Leonteq through enhanced client services Client focus • Propositions centred around transparency on product documentation, service throughout the li
Slide 7: Strategic Priorities: Focused Execution Since Mid-2018
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 STRATEGIC PRIORITIES FOCUSED EXECUTION SINCE MID-2018 PRIORITIES DEFINED UPDATES & ACHIEVEMENTS • Simplified organisational structure Increase efficiency, reduce functional 1 Reduce complexity overlaps and clarify roles and responsibilities • Product organisatio
Slide 8: Smart Hedging Issuance Platform (SHIP)
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 SMART HEDGING ISSUANCE PLATFORM (SHIP) ON TRACK TO BE FULLY OPERATIONAL BY MID-2020 LEONTEQ PLATFORM • 3rd hedging counterparty ISSUERS connected to SHIP • Autocallables and barrier reverse convertibles with equity underlyings available • All major currencies av
Slide 9: SHIP Statistics Q2 2019
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 SHIP STATISTICS Q2 2019 MORE THAN 600 TRADES WITH NOTIONAL OF CHFm 350¹ TRADES AND NOTIONAL EXECUTED ON SHIP (CUMULATIVE)2 FOCUS AREAS TO KEEP POSITIVE MOMENTUM • Today, SHIP covers approx. 800 350 40% of Leonteq’s product universe (autocallables and barrier rev
Slide 10: New Digital Marketplace
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 NEW DIGITAL MARKETPLACE REDEFINING THE INVESTMENT EXPERIENCE OF CLIENTS AND PARTNERS Leonteq CRM Private banks CRM EFG International • Digital access to one of the largest Raiffeisen Switzerland IV. I. CRM Invest Access Retail banks structured product universes
Slide 11: Our Performance
OCTAVIAN SEMINAR 2020 14 JANUARY 2020 OUR PERFORMANCE 11
Slide 12: Business Metrics: Consistent Strong Double Digit Growth Rates
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 BUSINESS METRICS CONSISTENT STRONG DOUBLE DIGIT GROWTH RATES PLATFORM ASSETS* (CHFbn) TURNOVER (CHFbn) 15 40 CAGR CAGR 33% 23% 30 10 20 13.8 11.9 5 11.4 26.8 28.8 7.9 9.2 10 7.6 18.7 18.6 20.9 5.3 14.5 15.0 3.1 3.3 10.4 11.7 2.8 6.9 7.8 0 0.7 1.3 0 3.5 2008 2009
Slide 13: Income Statement: Focus on Sustainable, Profitable Growth
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 INCOME STATEMENT FOCUS ON SUSTAINABLE, PROFITABLE GROWTH TOTAL OPERATING INCOME (CHFm) TOTAL OPERATING EXPENSES (CHFm) 300 300 CAGR CAGR • Stable fee income generated in 29% 16% different set of market environment 200 200 • Cost line under control 282 • Since re
Slide 14: Solid Balance Sheet
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 SOLID BALANCE SHEET LOW RISK PROFILE AND LEVERAGE RATIO OF 7.7% ASSETS (CHFbn) LIABILITIES AND SHAREHOLDERS’ EQUITY (CHFbn) • Total assets decreased by 10% to CHFbn 9.6 Short-term credit Cash & receivables 1.7 1.7 & liabilities • Decrease in both assets and liab
Slide 15: Strong Capital Position
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 STRONG CAPITAL POSITION TOTAL BIS ELIGIBLE CAPITAL OF CHFm 633.5 RISK-WEIGHTED ASSETS (IN CHFm) BIS TOTAL CAPITAL RATIO (IN %) 5,000 25 -0.7pp +7% 4,000 20 2,981 2,781 2,381 4% 3,000 15 2,138 2% 1,919 2% 15% 15% 2% 17% 15% 22.0 21.3 2,000 3% 21% 10 19% 20.3 19.6
Slide 16: Summary
OCTAVIAN SEMINAR 2020 14 JANUARY 2020 SUMMARY 16
Slide 17: Summary: Focus on Transforming Leonteq's Business Model
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 SUMMARY FOCUS ON TRANSFORMING LEONTEQ’S BUSINESS MODEL • Leonteq made important steps towards becoming a globally renowned platform for structured investment products • Solid performance in H1 2019 despite challenging start into the year • Focused execution of k
Slide 18: Appendix
OCTAVIAN SEMINAR 2020 14 JANUARY 2020 APPENDIX 18
Slide 19: Income Statement
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 INCOME STATEMENT CHFm FY 2015 FY 2016 FY 2017 FY 2018 H1 2018 H1 2019 CHANGE Y-O-Y Net fee income 228.7 209.0 247.0 272.5 145.7 120.9 (17%) Net trading result (4.1) 5.5 (25.8) 21.4 (3.7) 7.5 N/A Net interest result (4.9) (7.5) (8.8) (14.9) (7.5) (5.2) (31%) Othe
Slide 20: Key Performance Indicators
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 KEY PERFORMANCE INDICATORS GROUP KPIs FY 2015 FY 2016 FY 2017 FY 2018 H1 2018 H1 2019 Cost-income ratio 69% 91% 89% 67% 70% 76% Return on equity 17% 4% 6% 18% 19% 10% Investment Solutions Platform assets (CHFbn)1 7.9 9.2 11.4 11.9 13.2 13.8 Whereof platform part
Slide 21: Shareholder Structure
OCTAVIAN SEMINAR 2020 16 JANUARY 2020 SHAREHOLDER STRUCTURE1 SIGNIFICANT SHAREHOLDERS2 SHAREHOLDER STRUCTURE1 Raiffeisen Switzerland3 29.02% Lukas Ruflin family interests 4 8.15% Sandro Dorigo 2.45% Subtotal shareholders’ agreement 39.62% Rainer-Marc Frey 5,6 12.15% 20% 29% Credit Suisse AM7 3.00% D