Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Debt Investor Presentation (September 2023)
47 slides from Kempen European High Dividend Fund N.V. N's debt investor presentation, September 2023
Slide 1: Debt investor presentation
ee September 2023 Debt investor presentation
Slide 2: Van Lanschot Kempen at a glance
Van Lanschot Kempen at a glance We are an independent, specialist wealth manager with the aim to preserve and create wealth for our clients and for society in a sustainable way We focus on private clients, wholesale and institutional clients, and investment banking clients Our core activities are pr
Slide 3: Solid performance on all key financials
Solid performance on all key financials H1 2023 H1 2022 2022 Net result €51.8m €48.2m €84.3m Underlying net result €54.7m €60.7m €117.8m CET1 ratio 21.6% 20.2% 20.6% Efficiency ratio 74.5% 73.7% 73.1% RoCET1 11.4% 12.0% 12.8% Total capital ratio 27.4% 25.8% 26.4% Client assets €130.8bn €118.5bn €124
Slide 4: We have a clear focus on our client groups
We have a clear focus on our client groups Private Clients Wholesale & Institutional Investment Banking Clients Clients • Wealth management services for • Fiduciary wealth management for • Corporate finance, equity capital entrepreneurs, family businesses, institutional clients markets, debt advisor
Slide 5: Generate sustainable and profitable growth while maintaining a capital-light balance sheet
Generate sustainable and profitable growth while maintaining a capital-light balance sheet with the ambition to grow 10% in AuM per year Organic growth Bolt-on acquisitions Focus on private banking in NL and BE and investment management in NL Market performance
Slide 6: On track with execution of our wealth management strategy
On track with execution of our wealth management strategy Bolt-on acquisitions Healthy AuM growth Good progress on the integration of Investing in growth within Private (+7% to €115.2bn) Mercier Vanderlinden and Robeco online Clients by attracting new talent investment platform Satisfied clients and
Slide 7: Progress on our sustainability goals
Progress on our sustainability goals Own funds and • 88% of funds on track for reduction of 7% average annual discretionary management emission intensity in line with Paris agreement solutions above target Lower emissions via our • Reduction: 5.0% CO2e/€ (2022: +8.7%) mortgage portfolio • Target: CO
Slide 8: Our medium-term financial targets
Our medium-term financial targets A solid business model CET 1 ratio Efficiency ratio Return on CET 1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle • Our capital strategy is focused on maintaining a strong position with the 2.5% M&A add-on providing sufficient scope for bolt-on acquisitions tha
Slide 9: Shareholder return since 2016
Shareholder return since 2016 Total shareholder return (€ m) 86 74 61 29 82 59 722 61 636 562 501 390 419 331 270 270 Returns 2016- Capital Dividend Dividend Dividend Capital Dividend Proposed capital Total 2018 return 2019 2020 2021 return 2022 return 2023 return to 2019 2022 shareholders * 2016-20
Slide 10: Acquisition of Robeco online investment platform
Acquisition of Robeco online investment platform Positioning Evi van Lanschot for further growth The combined activities The future • Online and personal • Become a leader in mass- • Combined €6.3bn in AuM affluent market • Robeco investment funds • Economies of scale to remain part of client • Plat
Slide 11: 2023 half-year results
ee 2023 half-year results
Slide 12: H1 2023: Key financial highlights
H1 2023: Key financial highlights Net result €51.8m Operating expenses AuM net inflow Strong capital position (+8%) €235.2m €3.2bn CET 1 ratio 21.6% (+9%) Private Clients: €2.2bn (2022: 20.6%) Wholesale & Institutional Clients: €1.0bn RoCET 1 at 11.4% (H1 2022: 12.0%) Commission Efficiency ratio Cli
Slide 13: H1 2023: key messages
H1 2023: key messages Solid net profit of €51.8m (H1 2022: €48.2m) • Commission income up (+1%), of which securities commission income +6% and other commission income -30% • Increase in interest income (+67%) • Operating expenses up (+9%) Our segments • Private Clients: net AuM inflow at €2.2bn and
Slide 14: Net result amounts to €51.8m
Net result amounts to €51.8m Key drivers of net result (€ m) • H1 2023: lower result MTN portfolio (- €10.9m), due to rising interest rates • H1 2022 included a book profit (€7.4m) -26.2 46.5 -19.2 9.7 5.6 -7.4 -5.4 70.8 48.2 48.2 50.5 50.5 51.6 46.2 46.2 51.8 H1 2022 Securities Other Interest Other
Slide 15: Overview of net result
Overview of net result €m H1 2023 H1 2022 % change Commission income 203.7 201.3 1% of which securities commission income 186.5 176.7 6% of which other commission income 17.2 24.6 -30% Interest 116.2 69.7 67% Other income -4.2 22.0 Income from operating activities 315.7 293.1 8% Operating expenses -
Slide 16: Private Clients: Continued high net inflows
Private Clients: Continued high net inflows AuM (€ bn) -2.6 2.2 42.7 45.3 40.5 40.5 31-12-2022 Net AuM Market 30-6-2023 inflow performance • Net inflows: 79% non-discretionary, 16% discretionary and 5% investment strategies • Net inflows well spread across NL, BE, and CH • Operating result before ta
Slide 17: Private Clients Belgium
Private Clients Belgium Acquisition of the remaining 30% of Mercier Vanderlinden completed AuM (€ bn) 0.3 0.8 9.2 9.2 9.5 10.3 31/12/2022 Net AuM Market 30/06/2023 inflow performance • Integration well on-track: as of 1 January 2024, under the name Mercier Van Lanschot • Ambition: to become a top-th
Slide 18: Wholesale & Institutional Clients: €1.0bn net inflow
Wholesale & Institutional Clients: €1.0bn net inflow AuM (€ bn) 0.7 0.4 1.5 -0.1 67.3 67.2 67.2 67.9 67.5 69.9 31/12/2022 Net investment Net fiduciary Net alternative Market 30/6/2023 strategies management investment performance inflows inflows solutions inflows • Operating result before tax at -€1.
Slide 19: Ability to retain solid margins at both Private Clients and Wholesale & Institutional Clients
Ability to retain solid margins at both Private Clients and Wholesale & Institutional Clients Annualised recurring fees* (€ m) AuM breakdown (~%) 10% 20% Private Clients 70% 359.5 379.8 306.9 329.6 339.8 23% 27% Wholesale & Institutional Clients HY2021 YE2021 HY2022 YE2022 HY2023 49% Equities Bonds
Slide 20: Investment Banking Clients: challenging markets due to higher interest rates
Investment Banking Clients: challenging markets due to higher interest rates Commission income (€ m) 29.0 31.7 26.3 24.3 17.0 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 • Operating result before tax to -€4.8m (H1 2022: €1.3m) • As usual, we’re adapting our organisation to market conditions with a focus
Slide 21: Interest margins improved in H1 2023
Interest margins improved in H1 2023 Interest income (€ m) Interest margin (12-mth moving average, %) 1.25% 1.25% 116.2 0.98% 0.95% 93.0 0.88% 75.1 76.1 77.5 69.7 0.92% 0.94% 0.86% H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2021 H1 2022 H2 2022 H1 2023 Clean interest margin* Interest margin
Slide 22: Net interest income: savings rate and client behaviour main drivers
Net interest income: savings rate and client behaviour main drivers • Notional weighted client rate relative to the ECB rate is approx. 30% per end of June 2023 • Current average term deposit maturity is approx. 0.5 years Expectations H2 2023 • Further rise of term deposits in the client deposits mi
Slide 23: Other income
Other income • Other income consists of income from securities and associates and result on financial transactions • Total other income at -€4.2m (H1 2022: €22.0m), decrease driven by: • Lower result on co-investments in own products at -€0.5m (H1 2022: €1.7m) • Result on medium-term notes at -€10.1
Slide 24: Income from securities and associates
Income from securities and associates €m Income Income Book value Book value H1-2023 H1-2022 HY2023 YE2022 VLP (minority interests) 2.3 12.2 43.8 47.8 Bolster Investments Coöperatief UA 2.2 2.5 69.3 63.1 Co-investments in own products 1.3 -8.5 116.7 123.3 Other equity investments 0.0 0.0 1.9 2.0 Tot
Slide 25: Increase operating expenses mainly driven by investments in growth
Increase operating expenses mainly driven by investments in growth Operating expenses (€ m) 11.5 2.6 5.2 216.0 216.0 227.5 230.1 235.2 H1 2022 Staff costs Accomodation Other H1 2023 expenses • Staff costs up, mainly due to • a higher number of FTEs at 1,844 (June 2022: 1,713), driven by a shift from
Slide 26: Stable loan portfolio
Stable loan portfolio €m Loan Loan % change Impaired Provision Impaired Coverage portfolio portfolio loans ratio ratio 30/06/2023 31/12/2022 Mortgages 6,314 6,341 0% 27 2 0.4% 9% Other loans 2,311 2,371 -3% 85 24 3.7% 29% Loan portfolio 8,625 8,712 -1% 112 27 1.3% 24% Mortgages distributed by third
Slide 27: High quality of loan portfolio allowed for a release from loan loss provisions
High quality of loan portfolio allowed for a release from loan loss provisions Additions to loan loss provisions (€ m) Loan loss provision per stage -34 bps* -2 bps* -9 bps* €m 30/06/2023 31/12/2022 % change Stage 1 4.9 6.1 -19% Stage 2 6.3 7.0 -9% -0.5 Stage 3 26.7 26.9 -1% -1.9 Total 37.9 40.0 -5%
Slide 28: Strong CET 1 ratio at 21.6%
Strong CET 1 ratio at 21.6% Common Equity Tier 1 ratio (%) 0.8 0.2 20.6 20.6 21.4 21.6 31/12/2022 Share issuance related Other 30/6/2023 to the acquisition of Mercier Vanderlinden The CET 1 ratio according to the ‘Basel IV fully loaded’ definition stood at around 22% Expected CET 1 ratio development
Slide 29: Committed to our financial targets
Committed to our financial targets Common Equity Tier 1 ratio Dividend pay-out ratio* 15%+2.5% 50%-70% medium-term medium-term 23.8% 24.3% 23.7% 20.6% 21.6% n/a 65% 67% 57% 53% 2019 2020 2021 2022 H1 2023 2019 2020 2021 2022 H1 2023 Efficiency ratio Return on Common Equity Tier 1* 70% medium-term 12
Slide 30: Van Lanschot Kempen's diversified funding profile and solid capital buffers
ee Van Lanschot Kempen’s diversified funding profile and solid capital buffers
Slide 31: Van Lanschot Kempen's solid profile is reflected in its creditworthiness
Van Lanschot Kempen’s solid profile is reflected in its creditworthiness Standard & Poor’s Fitch • Long-term credit rating of issuer: BBB+ • Long-term credit rating of issuer: BBB+ • Outlook long-term credit rating: Stable • Outlook long-term credit rating: Positive • Short-term credit rating of iss
Slide 32: Balance sheet shows strong capital and funding position
Balance sheet shows strong capital and funding position Balance sheet 30 June 2023 Significant capital buffer € bn, balance sheet total = €15.5bn • Total equity and AT1 of €1.4bn 0.4 Due to banks Cash and cash equivalents • CET 1 ratio 21.6% 2.2 and balances at banks • Leverage ratio 6.6% Financial
Slide 33: Van Lanschot Kempen has various funding programmes
Van Lanschot Kempen has various funding programmes Secured programmes Unsecured programmes • Public covered bond programmes used for wholesale Debt Issuance Programme / MTN funding purposes • €5.0 billion programme • Residential mortgage loan portfolio, fully originated • Used for wholesale funding
Slide 34: Funding mix and redemption profile
Funding mix and redemption profile Funding mix 30 June 2023 Redemption profile* (100% = €15.5 billion) €m 800 2% 3% 9% 600 Client savings and deposits 13% Debt securities 400 Equity Other funding 200 72% Interbank funding 0 H2 2023 2024 2025 2026 2027 ≥2028 Senior unsecured Covered bond Tier 2 Addit
Slide 35: Track record of issuing secured and unsecured debt instruments
Track record of issuing secured and unsecured debt instruments • Funding position based on a stable level of bond issuance, our presence in wholesale markets and accordingly experienced with secured funding related (reporting) tasks • Experienced player in setting up new funding programmes (for exam
Slide 36: Appendix
ee Appendix
Slide 37: Key figures by segment: H1 2023
Key figures by segment: H1 2023 €m Private Wholesale & Investment Other Total Clients Institutional Banking Clients Clients Commission income 144.4 39.3 17.0 3.1 203.7 Interest income 106.5 0.1 -0.1 9.8 116.2 Other income 0.6 0.2 0.3 -5.3 -4.2 Income from operating activities 251.5 39.6 17.2 7.5 315
Slide 38: Progress on our non-financial KPIs
Progress on our non-financial KPIs KPI Targets Performance H1 2023 Performance 2022 Manufactured Three-year relative performance of our managed propositions > benchmark 0.3% 0.2% capital Human and Employer Net Promoter Score (eNPS) >10 22 18 intellectual Employee engagement score > 80% 88% 88% capit
Slide 39: High scores on external ESG ratings
High scores on external ESG ratings Entered ESG AEX index in H1 2023 Governance: 2 B- rating Lower governance risk = 1 Higher governance risk = 10 ISS ESG Corporate Rating 8th place in league table of AA rating 486 entrants on resilience to ESG risks 21st place in a league table 4 and 5 stars (out o
Slide 40: Management Board
Management Board Maarten Edixhoven Jeroen Kroes Wendy Winkelhuijzen Arjan Huisman (1971) Richard Bruens (1967) Erik van Houwelingen (1965) (1971) (1973) (1978) COO Client Management & Investments Strategies & Chair CFO CRO Origination Solutions Appointed Appointed Appointed Appointed Appointed Appoi
Slide 41: Supervisory Board
Supervisory Board Frans Blom Manfred Schepers Karin Bergstein Brigitte Boone Maarten Muller Elizabeth Nolan (1962) (1960) (1967) (1960) (1954) (1962) Chair Vice-Chair Appointed: 2018 Appointed: 2017 Appointed: 2020 Appointed: 2021 Appointed: 2018 Appointed: 2023 More information about the Supervisor
Slide 42: Van Lanschot Kempen shares
Van Lanschot Kempen shares Development of share price and trading volume Movements in Van Lanschot Kempen's share price Jun-19: Ex- dividend €1.45 Jun-21: Ex- dividend €0.20 Oct-21: Ex- dividend €1.95 Jun-22: Ex- dividend €2.00 compared with industry indices 250% €35 90,000 80,000 €30 200% 70,000 €2
Slide 43: We have a diversified shareholder base
We have a diversified shareholder base Van Lanschot Kempen’s shareholder base At 24/8/2023 Romij 10.1% LDDM Holding 9.8% Janus Henderson Group 5.6% FMR 58.0% 5.0% Management & employees 4.7% MVDP 3.9% J.B. Meulman 3.0% Other 43
Slide 44: Van Lanschot Kempen's rich history reaches back to 1737
Van Lanschot Kempen’s rich history reaches back to 1737 Acquisition Strategic Staalbankiers’ private Partnership with Acquisition of Robeco’s online review a.s.r. bank investment platform and banking activities partnership with Robeco Acquisition c. €4.7bn AuM Hof Hoorneman Acquisition Launch of Str
Slide 45: Contact
Contact Ralf van Betteraij Marrit Oudeboon Head of Funding Management Funding Management T +31 20 348 97 13 T +31 20 348 97 14 r.vanbetteraij@vanlanschotkempen.com m.oudeboon@vanlanschotkempen.com
Slide 46: Important Notice (1/2)
Important Notice (1/2) FOR DISTRIBUTION ONLY OUTSIDE THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS TO PERSONS OTHER THAN "U.S. PERSONS" (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")). NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN
Slide 47: Important Notice (2/2)
Important Notice (2/2) The financial data in the Presentation have not been audited or reviewed, unless specifically stated otherwise. Small differences in tables may be the result of rounding. Each Relevant Persons expressly disclaims any and all liability for any representations, warranties or und
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