Slide 1: Leonteq AG Full-Year 2022 Results
LEONTEQ AG FULL-YEAR 2022 RESULTS ZURICH, 9 FEBRUARY 2023
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, documents and information used therein or distributed in the context of this presentation do not constitute or form part of and
Slide 3: Highlights 2022
HIGHLIGHTS 2022 LUKAS RUFLIN | CEO
Slide 4: We delivered record results two years in a row
WE DELIVERED RECORD RESULTS TWO YEARS IN A ROW Key figures FY 2022 456.4 193.3 156.4 8.58 4.00+1.00 FY 2021: 417.8 FY 2021: 3.00 FY 2021: 174.5 FY 2021: 155.7 FY 2021: 8.47 +67% +9% +11% +0% +1% Operating income Profit before taxes Group net profit Earnings per share Total distribution (CHF million)
Slide 5: A track record of revenue growth since inception
A TRACK RECORD OF REVENUE GROWTH SINCE INCEPTION Quarterly economic revenues since inception (CHF million)1 220 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 Economic revenues are defined as fee income and trading income earned and
Slide 6: Financial Performance
FINANCIAL PERFORMANCE MARCO AMATO | DEPUTY CEO & CFO
Slide 7: Record results in challenging market environment
RECORD RESULTS IN CHALLENGING MARKET ENVIRONMENT Total operating income Total operating expenses Profit before taxes Group net profit (CHF million) (CHF million) (CHF million) (CHF million) +9% +8% +11% +0% 456.4 417.8 243.3 263.1 174.5 193.3 155.7 156.4 1 1 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 F
Slide 8: Topline driven by strong Q1 2022 and weak Q4 2022
TOPLINE DRIVEN BY STRONG Q1 2022 AND WEAK Q4 2022 Diversification of offering leads to improved Quarterly economic revenues (CHF million)1 earnings quality 225 • Subdued levels of client activity on the back of challenging market environment • Stable fee income on a monthly basis 200 • New business
Slide 9: Cost increase mainly resulting from continued strategic investments
COST INCREASE MAINLY RESULTING FROM CONTINUED STRATEGIC INVESTMENTS Total operating Total operating expenses expenses (CHF (CHF million) million) Cost base before additional variable costs 2020 reported 198 and provisions expected to increase in 2023 on the back of additional ∆ 2021 4 investments in
Slide 10: Solid balance sheet driven by own issuance, liquid hedging positions
SOLID BALANCE SHEET DRIVEN BY OWN ISSUANCE, LIQUID HEDGING POSITIONS AND HIGH QUALITY INVESTMENT PORTFOLIO Assets (CHF billion) Liabilities and shareholders’ equity (CHF billion) • Total assets decreased by 14% to CHF 12.4 billion (vs. CHF 14.4 12.4 12.4 billion in 2021) mainly driven by a decrease
Slide 11: Capital base further strengthened to CHF 932.8 million (+7%)
CAPITAL BASE FURTHER STRENGTHENED TO CHF 932.8 MILLION (+7%) Capital base1 (CHF million) 62.8 156.4 -54.7 -19.2 -14.6 932.8 870.0 802.1 Shareholders' Distribution to Allocation to Other Retained earnings Shareholders' Deferred fee Capital equity shareholders OCI effects 2 (net profit 2022) equity in
Slide 12: Attractive returns to shareholders and refined capital return policy
ATTRACTIVE RETURNS TO SHAREHOLDERS FOR 2022 AND REFINED CAPITAL RETURN POLICY Dividend per share1 Share buyback2 Payout ratio 4.00 Up 33% from CHF 3.00 for 2021 CHF per share 1.00 CHF per share Pro-forma distribution equivalent to 58% Equivalent to CHF 5.00 total buyback volume of up to CHF 18 distr
Slide 13: Growth Strategy 2026
GROWTH STRATEGY 2026 LUKAS RUFLIN | CEO
Slide 14: We continued to execute our Growth Strategy 2026 and commit to new ESG targets
WE CONTINUED TO EXECUTE OUR GROWTH STRATEGY 2026 AND COMMIT TO NEW ESG TARGETS We are executing a Growth Strategy 2026 … measured against clear targets for 2026. based on four dimensions… OFFERING FINANCIAL TARGETS 2026 We are further enlarging and diversifying our offering across products, asset cl
Slide 15: We delivered against the four strategic pillars with tangible progress in 2022
WE DELIVERED AGAINST THE FOUR STRATEGIC PILLARS WITH TANGIBLE PROGRESS IN 2022 Strategic pillars Achievements 2022 • Innovative white-labelling onboarding model (structuringHUB) • Recognition as third-country administrator under EU Benchmark Regulation OFFERING • Leading position in offering crypto
Slide 16: Our progress along the four strategic pillars measured against clear KPIs
OUR PROGRESS ALONG THE FOUR STRATEGIC PILLARS MEASURED AGAINST CLEAR KPIs DEFINED IN EARLY 2022 Revenues from new growth initiatives Client transactions (in %) (in thousands) Platform Offering ~ 51 264 44 207 28 164 172 25 114 18 97 12 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Net
Slide 17: We continued to expand our ecosystem for investment solutions
WE CONTINUED TO EXPAND OUR ECOSYSTEM FOR INVESTMENT SOLUTIONS Self Private Regional Universal directed banks banks banks investors +5 partners sp.leonteq.com Independent asset Institutional managers investors Family offices Digital solutions & Clients & connectivity investors Content, White- product
Slide 18: We received considerable external recognition
WE RECEIVED CONSIDERABLE EXTERNAL RECOGNITION AWARDS ESG RATINGS MEMBERSHIPS • Top Service (12 years in a row) A upgraded in 2022 from BB • Best Commodity Product • Special Award for white-labelling programme Low Risk (Score 17.6) upgraded in 2022 from Medium Risk Certificate of the Year B- upgraded
Slide 19: We continued to invest in key initiatives and plan to increase yearly investments
WE CONTINUED TO INVEST IN KEY INITIATIVES AND PLAN TO INCREASE OUR YEARLY INVESTMENTS TO CHF 32 MILLION (FROM CHF 21 MILLION) Expansion of product offering Expansion of issuer universe (B2B) Develop automated flow trading platform Key initiatives to drive our Growth Acceleration of digital offering
Slide 20: Summary & Outlook
SUMMARY & OUTLOOK LUKAS RUFLIN | CEO
Slide 21: Summary & Outlook
SUMMARY & OUTLOOK • Record results underscore resilience of business model • Results demonstrate ability to further improve earnings quality Summary • Client franchise remained strong • Attractive returns to shareholders • Focused execution of Growth Strategy 2026 and tangible progress on key initia
Slide 22: Appendix
ote tS CEONTEQ APPENDIX
Slide 23: Group Results
GROUP RESULTS Income statement H2 2022 H1 2022 H2 2021 Change FY 2022 FY 2021 Change (CHF million) H2-H2 y-o-y Net fee income 87.6 115.6 136.7 (36%) 203.2 306.7 (34%) Net trading result 84.3 179.6 77.0 9% 263.9 112.4 135% Net interest result (8.9) (7.9) (3.3) 170% (16.8) (5.7) 195% Other ordinary in
Slide 24: KPIs and Business Metrics (1/2)
KPIs AND BUSINESS METRICS (1/2) (CHF billion, unless otherwise stated) H2 2022 H1 2022 H2 2021 Change FY 2022 FY 2021 Change H2-H2 y-o-y Economic revenues excl. hedging result (CHFm) 97.7 137.9 144.7 (32%) 235.6 338.5 (30%) of which from new growth initiatives (CHFm) 48.1 73.2 60.7 (21%) 121.3 149.2
Slide 25: KPIs and Business Metrics (2/2)
KPIs AND BUSINESS METRICS (2/2) (CHF million, unless otherwise stated) H2 2022 H1 2022 H2 2021 Change FY 2022 FY 2021 Change H2-H2 y-o-y Net fee income 87.6 115.6 136.7 (36%) 203.2 306.7 (34%) of which Switzerland 44.8 51.3 57.2 (22%) 96.1 117.2 (18%) of which Europe 32.4 51.0 60.5 (46%) 83.4 146.3
Slide 26: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Dominik Ruggli Leonteq AG Head Investor Relations, Investor Relations Communications & Marketing Europaallee 39 | 8004 Zürich | Switzerland +41 58 800 18 55 investorrelations@leonteq.com www.leonteq.com/investors Follow us Linkedin Twitter Renato Bolliger Facebook Investo