Vontobel Holding Ag · SIX:VONN
Vontobel — FY2021 Earnings Presentation
30 slides from Vontobel's earnings presentation, Feb 9, 2022
Slide 1: Vontobel full-year 2021 results
Vontobel full-year 2021 results Zeno Staub Thomas Heinzl CEO CFO February 9, 2022
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer February 9, 2022 This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties, and other important factors. These projections and forwa
Slide 3: Overview
Overview February 9, 2022 Highlights and strategic progress Financial results Outlook Q&A
Slide 4: Highlights full-year 2021
Highlights full-year 2021 February 9, 2022 – Strong earnings – Record net profit CHF 384 million, up 48% YoY – Growth across all Client Units; 80% of revenues from AM and WM – Solid strategic progress – US growth: acquired UBS SFA1 and launched the Fixed Income Boutique – Fully acquired TwentyFour A
Slide 5: Key figures
Key figures February 9, 2022 Record financial performance and capital returns Advised client assets Net new money CHF 268 B (+8%) CHF 8.1 B of which: CHF 244 B AuM (+11%) (3.7%) Operating income Pre-tax profit Group net profit CHF 1,536 M CHF 467 M CHF 384 M (+21%) (+46%) (+48%) Return on Equity Div
Slide 6: Vontobel – the pure-play buy-side investment firm
Vontobel – the pure-play buy-side investment firm February 9, 2022 Long-term focused Strategic levers Clear priorities Client-centric Investment- led 1 The Vontobel experience 2 Pure-play investment firm 3 Tipping points for growth Technology- Powered by enabled people 4 Technology, data & analytics
Slide 7: We achieved significant strategic progress in 2021
We achieved significant strategic progress in 2021 February 9, 2022 The Vontobel − High and increasing Net Promoter and Client Satisfaction scores across all Client Units 1 experience − Ranked as one of the strongest brands in Switzerland (2021 Brand Finance Schweiz 50) Pure-play − Strong Wealth Man
Slide 8: Asset Management in 2021 – Excellent performance and inflows in Fixed Income
Asset Management in 2021 – Excellent performance and 2 inflows in Fixed Income, challenging in Equities February 9, 2022 Equity Multi Asset Fixed Income 2021 – Quality styles continued to face – Strong performance rebound in – Excellent performance recap headwinds with markets led by a systematic st
Slide 9: ESG: We are enabling our clients to manage the risks and seize the opportunities
ESG: We are enabling our clients 2 to manage the risks and seize the opportunities February 9, 2022 Our commitments A long track record ESG investing AuM per ESG categorization2 Net-zero by 2030 In our own investments1 and operations 36 2 1998 2014 Content & Advisory First ESG Vontobel becomes a 48
Slide 10: We are expanding our US footprint, executing a clear strategy
We are expanding our US footprint, executing a clear strategy 3 to tap into a significant market opportunity February 9, 2022 Significant market opportunity Clear strategy Relative market size (est.) Vontobel 2021 2022 Wealth Management Rest of 38% Vontobel to be recommended World 49% Vontobel annou
Slide 11: We are meeting the evolving needs of our clients and enabling them to grow
We are meeting the evolving needs of our clients 4 and enabling them to grow February 9, 2022 volt Delivering investment expertise with a hybrid model Opportunities – Enable additional client Investment segments to access our expertise Traditional global investment WM know-how and expertise client o
Slide 12: Overview
Overview February 9, 2022 Highlights and strategic progress Financial results Outlook Q&A
Slide 13: Record financial performance
Record financial performance February 9, 2022 Key figures (CHF M) 2021 2020 ∆ (%) ∆ CC − Record pre-tax profit reflects strong revenue Assets under Management (B) 243.7 219.6 +11% growth across all Client Units Net New Money (B) 8.1 14.8 −45% Operating income 1,535.6 1,265.5 +21% +22% − Cost/income
Slide 14: ACA and AuM – Record balances
ACA and AuM – Record balances February 9, 2022 Advised client assets Assets under management development (CHF B) (CHF B) 268.1 ACA 243.7 +9% p.a. 248.2 +8% yoy 226.1 15.3 186.6 192.6 0.7 219.6 8.1 AuM 243.7 +11% yoy 219.6 198.9 165.3 171.1 2017 2018 2019 2020 2021 2020 NNM FX Performance 2021 Struct
Slide 15: AuM and NNM – Solid growth in Wealth Management
AuM and NNM – Solid growth in Wealth Management mostly compensating Asset Management soft-patch February 9, 2022 Record asset levels Strong WM inflows; AM soft-patch (Assets under management, CHF B) NNM (CHF B) and growth (%) − WM growing across all key markets and client segments +11% 7.4% 3.7% − A
Slide 16: Operating income – strong growth across all Client Units
Operating income – strong growth across all Client Units February 9, 2022 Operating income by category Operating income by Client Unit (CHF M) (CHF M) − AM and WM combined comprise 80% of operating income +21% 1,536 1,536 − AM and WM both benefitting from higher 61 average asset levels and continued
Slide 17: Margins – Asset Management stable, Wealth Management declined marginally
Margins – Asset Management stable on continued pricing discipline, Wealth Management declined marginally on lower interest income February 9, 2022 Asset Management RoA Wealth Management RoA1,2,3 (bps) (bps) − AM stability reflects continued pricing discipline, even −5 bps against NNM headwinds and 7
Slide 18: Costs – Meaningful positive operating leverage
Costs – Meaningful positive operating leverage February 9, 2022 Operating expenses by category Cost/income ratio (CHF M) (%) − Cost increase on higher personnel expenses due to strong operating income +13% −5.0 pp 1,068 74.1% − Cost / income substantially below target on positive operating leverage,
Slide 19: Capital – Strong capital levels and a conservative risk profile
Capital – Strong capital levels and a conservative risk profile February 9, 2022 Capital ratios (% of RWA) − CET1 capital ratio up 280 bps to 16.6% 23.4% 6.8% ~21.1% − CET1 capital increased to CHF 1,101 million, 19.8% mainly on strong earnings AT1 6.0% ~6.6% − RWA decreased to CHF 6,617 million, dr
Slide 20: Dividend – Highly capital accretive business model enables attractive returns
Dividend – Highly capital accretive business model enables attractive returns February 9, 2022 18.8% Return on equity (%) FY 2021 ROTE: 26% 13.1% 14.2% FY 2021 ROCET1: 34% 13.0% 13.3% 12.4% 11.7%1 11.0% ~10% 9.7% 9.2% 8.7% 9.1% Cost of equity2 (%) 8.3% 8.4% 8.4% 8.8% 8.0% 7.5% 7.6% 7.2% 7.4% 3.00 2.
Slide 21: Summary of business KPIs and targets
Summary of business KPIs and targets February 9, 2022 2021 2020 Targets Net new money growth 3.7% 7.4% 4% – 6% Top line growth 21.3% 0.3% 4% – 6% Pre-tax profit growth 45.5% 4.7% – Net profit growth 48.0% −2.2% – Cost/income ratio 69.1% 74.1% < 72% Return on equity 18.8% 13.3% > 14% CET1 ratio 16.6%
Slide 22: Overview
Overview February 9, 2022 Highlights and strategic progress Financial results Outlook Q&A
Slide 23: Outlook
Outlook February 9, 2022 2021: record financial results We are entering 2022 with 2022 will be focused on our clients and strong strategic confidence; noting that while advancing key initiatives aligned progress, organic and inflationary, geopolitical and to our strategic priorities: inorganic pande
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Summary of FX impacts and one-offs
Summary of FX impacts and one-offs February 9, 2022 Pre-tax profit (CHF mn) +46% reported − Underlying growth in-line with reported +48% underlying − Lower FX impact than in prior year 484.2 -7.9 -9.1 467.2 157.7 − Two mostly offsetting one-offs in FY21 321.0 5.5 326.5 results, both in 1H 2021 2020
Slide 27: AuM by asset class and ESG categorization
AuM by asset class and ESG categorization February 9, 2022 Assets under management by asset class Assets under management per ESG categorization (CHF B) (CHF B) Other1 1% 244 Equity 244 21% 36 2 32.8 Other Multi 100 143 2.2 assets Asset 17.3 48 57% 99.9 24.1 93 28.0 ESG 144 96 Fixed categorised 108
Slide 28: AuM by client domicile and mandate type
AuM by client domicile and mandate type February 9, 2022 Assets under management by client domicile Assets under management by mandate type (2021) (2021) Execution / Other custody Collective APAC / EM investments / 6% Advisory 10% funds mandates 27% 17% Switzerland 16% 42% North 8% America1 7% Italy
Slide 29: Record earnings per share and net profit
Record earnings per share and net profit February 9, 2022 Earnings 6.69 per share (CHF) 4.49 4.34 3.96 3.57 3.65 3.20 2.24 1.78 1.95 1.92 2011 2012 2013 2014 2015 20161 2017 2018 2019 2020 2021 Net profit (CHF M) 114 124 122 134 180 201 209 232 265 259 384 1 Adjusted results excluding net proceeds f
Slide 30: Shareholder structure
Shareholder structure1 February 9, 2022 Vontobel families hold more than 50% of the share capital and are strongly committed to Vontobel Vontobel Foundation and Pellegrinus Holding 19.6% Pooled Shares in the core Free float shares total pooling agreement 49.1% Vontrust AG 50.9% 44.5% 14.3% Advontes