Slide 1: Full-year 2019 results presentation
EFG International Full-year 2019 results presentation 26 February 2020 Zurich 4 in i
Slide 2: Important Legal Disclaimer
EFG International E rG Important Legal Disclaimer This document has been prepared by EFG International AG (“EFG”) solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for,
Slide 3: Key highlights
Key highlights Giorgio Pradelli, Chief Executive Officer Full-year 2019 results presentation 26 February 2020 r Page3
Slide 4: Executing 2022 strategic plan
EFG International ErG Executing 2022 strategic plan CRO growth CRO . productivity . Switzerland . backto growth New business initiatives in . selected . markets External growth 7 Full-year 2019 results presentation Record 181 CROs hired, signed or approved; exceeding original guidance of 70-100 hire
Slide 5: Refocused on profitable & sustainable growth
EFG International ErG Refocused on profitable & sustainable growth Accelerating growth trend in 2019 with cost-conscious approach and investments in growth 4% net new asset growth Reversing trend in NNA and AuM back to growth AuM of CHF 154 billion IFRS net profit up 34% Delivering profitable growth
Slide 6: Financial performance
ErG Financial performance Dimitris Politis, Chief Financial Officer Full-year 2019 results presentation 26 February 2020 Page 6
Slide 7: Presentation of financial performance
EFG International E rG Presentation of financial performance Changes from previous reporting periods: « Following the completion of the BSI integration, EFG has discontinued reporting “AuM attrition”, “underlying NNA” and “BSI integration costs”. Going forward, the only items excluded from underlyin
Slide 8: FY 2019 financial results in perspective
EFG International E rG FY 2019 financial results in perspective Executing on 2022 strategic plan = NNA of CHF 5.2 bn, annual growth of 4.0%; strong pickup in 2H19 at 6.6% NNA growth rate Business development « AuMup 17.2% to CHF 153.8 bn (including the acquisition of Shaw and Partners in April 2019)
Slide 9: Financials summary
EFG International E rG Financials summary a Revenue-generating AuM, CHF bn 153.8 131.2 Net new assets, CHF bn 5.2 (2.1) Net new asset growth 4.0% 1.5% Operating income, CHF mn 1,170.9 1,145.6 Operating expense, CHF mn 998.3 1,064.3 Operating profit, CHF mn 172.6 81.3 IFRS net profit, CHF mn 94.2 70.
Slide 10: Financials summary
EFG International Financials summary ee ee Revenue-generating AUM, CHF bn Net new assets, CHF bn Net new asset growth (annualised) Operating income, CHF mn Operating expense, CHF mn Operating profit, CHF mn IFRS net profit, CHF mn Underlying operating income, CHF mn / excl. Shaw and Partners Underly
Slide 11: Results highlights
EFG International Results highlights NNA growth within 4-6% target range NNA evolution (in CHF bn) | (5.8) (2.1) 2017 2018 2019 Investment in future growth # of CROs 181 10 Approved 10 Signed 161 2017 2018 2019 Full-year 2019 results presentation ErG Operating profit more than doubled Evolution of o
Slide 12: Underlying profitability
EFG International Underlying profitability ErG Underlying profitability of CHF 108.7 mn; IFRS net profit up 34% to CHF 94.2 m Reconciliation of underlying net profit (in CHF mn) RoTE 17 (7.4) (18.8) 94.2 Underlying net Life insurance Intangible Legacy legal IFRS net profit IFRS net profit profit 201
Slide 13: Evolution of underlying profitability
—— ErG Evolution of underlying profitability Underlying net profit of CHF 108.7 mn, down from CHF 191.8 mn in 2018 Evolution of underlying net profit (in CHF mn) = CHF 52.7 mn revenue reduction; CHF 36.1 mn drop in NII due to tightening USD interest rates + CHF 55.4 mn of cost reductions (synergies,
Slide 14: Revenue-generating AuM development
EFG International Revenue-generating AuM development Net new assets of CHF 5.2 bn at growth rate of 4.0%; AuM of CHF 153.8 bn Revenue-generating AuM evolution (in CHF bn) v (wt) 11.6 (03) +4.0% 8.6 (25) Dec 18 NNA Market FX Acquisitions Other Dec 19 Full-year 2019 results presentation 26 February 20
Slide 15: Evolution and drivers of NNA
EFG International Evolution and drivers of NNA Investor update growth targets As, (in CHF bn) By en eg fey, 075 Shaw and Partners 11 2018 NNA NNA NNA from Market 2022 adjusted? growth growth business effect from from initiatives* existing new CROs CROs? 1 Compound Annual Growth Rate (CAGR) over the
Slide 16: Business development by region
EFG International E rG Business development by region NNA growing in all regions in 2H19 2019 Revenue-generating AuMs as%of RoAuM* 2019 NNA Growth 2H19 NNA Annualised CHF 153.8 bn total AuM (in bps) CHF 5.2 bn (in %) CHF 4.9 bn growth in %, sven! eres & Italy Continental : Europe 33.5 Latin America
Slide 17: Evolution of mandates penetration
EFG International ErG Evolution of mandates penetration Improved mandate penetration to 47%* (advisory, discretionary mandates & funds) Evolution of advisory, discretionary mandates & funds (in %, excl. loans) >60% 47%* 39% 40% 2017 2018 2019 2022 target * 43% excluding Shaw and Partners Full-year 2
Slide 18: CRO performance
EFG International CRO performance Strong CRO hiring momentum Number of CROs CROs approved / signed Shaw and Partners 644 a 2017 2018 2019 O)neerage number of CROs Number of new CROs 181 10 Approved 10 Signed 2015 2016 2017 2018 2019 BSI integration ErG Record CRO hiring activity in 2019 - with 181 C
Slide 19: Underlying operating income
EFG International Underlying operating income ErG Underlying operating income of CHF 1,142.8 mn, down 1.9% vs. 2018 Underlying operating income (in CHF mn) 1,165.1 1,142.8 22.8 2bps eg 112.3 bp 15.0 1bp 205.0 14 bps 1978 15 bps 198.4 14 bps 27 bps 23 bps 25 bps 41 bps 2018 2019 (excl. Shaw and 2019
Slide 20: Underlying revenue margin
EFG International E rG Underlying revenue margin Evolution of underlying revenue margin (excl. Shaw and Partners) Evolution underlying revenue margin (in bps) EFG with historically strong track record in managing revenue margin 87 85 84 84 82 Some recent indications: v 16 16 oe ; = Drop in NIlis due
Slide 21: Underlying operating expenses
EFG International E rG Underlying operating expenses Underlying operating expenses down CHF 343 mn since 2015 (on a like-for-like basis) Underlying operating expenses (in CHF mn) FTEs = Cumulative cost savings of 27% since 2015 (based on proforma cost base of CHF 1,254 mn) CIR 1,254.4 = Continued co
Slide 22: Update on cost synergies from BSI transaction
EFG International E rG Update on cost synergies from BSI transaction Successful delivery of cost synergies Cumulative targeted cost synergies (pre-tax . . . . (in CHF mn) $ ynergies (p ) Delivered targeted cost synergies, even without the envisaged actions on sub-critical booking centres, so far v B
Slide 23: Evolution of cost-income ratio
EFG International E rG Evolution of cost-income ratio Further improving efficiency by 2022 Cost-income (C/!) target drivers (in %) New AuM starting point of CHF 141.1 bn vs. CHF 136.4 bn average in 2019 (excl. Shaw 35.2% 85.2% / and Partners) at constant margin 82.9% 2020 ox [i ms 2022 C/I target 78
Slide 24: Profitable growth into perspective
EFG International Profitable growth into perspective Data points excl. Shaw and Partners 2018 2019 Average AuM CHF 139.5 bn Average AuM CHF 136.4 bn (in CHF mn) (in CHF mn) 966.5 911.2 Revenues Costs Underlying Revenues Costs excl. Adjusted operating Investments underlying profit in growth* operatin
Slide 25: Executing the plan
EFG International ErG Executing the plan g a (=) = Cost management ro) Capital © = management 8 2 i= o = vo Oo o c os = Revenue generation ww wn o a 1 Acquisition of 51% Full-year 2019 results presentation AS p, 2019-2020 2021-2022 734 Se, . .. ep Io Operational efficiency 207, 7) Executing remainin
Slide 26: Balance sheet
EFG International E rG Balance sheet Strong and highly liquid Balance sheet Total assets: Total liabilities & equity: CHF 41.0 bn CHF 41.0 bn ~50% of Balance sheet in liquid assets = Loan-deposit ratio of 53%* = Liquidity coverage ratio (LCR) of 182% Cash & banks Fair value through OCI eb) Life Insu
Slide 27: Capital position (I)
— ErG Capital position (I) Strong capital position: CET1 ratio of 16.2%, Total capital ratio at 20.1% Total Capital Ratios* Breakdown of RWAs* (in %) (in CHF bn) = Capital ratios include the full impact from the acquisition of Shaw and 20.1 Partners (approx. 20 bps) = Leverage ratio (FINMA) at 3.9%
Slide 28: Capital position (II)
EFG International Capital position (II) Substantial available CET1 capital allows for expansion Evolution of CET1 Capital ratio* (in %) Underlying net capital generation | Total Capital 9746 Ratio* CET1 Capital -0.3 Ratio* “0.9 -0.2 -0.5 ErG Total Capital Ratio* CET1 Capital Ratio* EFG Minimum CET1
Slide 29: Strategic priorities & outlook
ErG Strategic priorities & outlook Giorgio Pradelli, Chief Executive Officer Full-year 2019 results presentation 26 February 2020 Page 29
Slide 30: Maintaining growth & profit momentum
EFG International ErG Maintaining growth & profit momentum Keep up growth momentum while further increasing profitability Business initiatives Cost efficiency Strategic prerequisites = Ensure growing contribution from new CROs and new strategic locations = Further enhance productivity of existing CR
Slide 31: 2020 strategic priorities
EFG International ErG 2020 strategic priorities Continue to execute our 2022 strategic plan Maintain growth momentum Focus on strategic prerequisites: Risk and Compliance standards Improve profitability via operational leverage Full-year 2019 results presentation 26 February 2020 Page 31
Slide 32: Full-year 2019 results presentation 26 February 2020 Page 32
Full-year 2019 results presentation 26 February 2020 Page 32
Slide 33: Appendix
ErG Appendix Full-year 2019 results presentation 26 February 2020 Page 33
Slide 34: Income statement (IFRS)
EFG International Income statement (IFRS) (in CHF million) Net interest income Net banking fee & commission income Net other income Operating income Personnel expenses Other operating expenses Amortisation of tangible fixed assets & software Amortisation of acquisition related intangibles Total oper
Slide 35: Income statement (IFRS)
EFG International E rG Income statement (IFRS) Net interest income 1777 183.6 169.3 156.6 Net banking fee & commission income 295.1 269.5 274.7 318.3 Net other income 97.6 122.1 111.8 140.2 Operating income 570.4 575.2 555.8 615.1 Personnel expenses (355.4) (352.9) (357.8) (339.1) Other operating ex
Slide 36: Underlying income statement
EFG International Underlying income statement (in CHF million) Net interest income Net banking fee & commission income Net other income Operating income Personnel expenses Other operating expenses Total operating expenses Operating profit Provisions Loss allowance expenses Profit before tax Income t
Slide 37: Underlying income statement
EFG International Underlying income statement (in CHF million) Net interest income Net banking fee & commission income Net other income Operating income Personnel expenses Other operating expenses Total operating expenses Operating profit Provisions Loss allowance expenses Profit before tax Income t
Slide 38: Reconciliation of Underlying results to IFRS results 2019
EFG International E rG Reconciliation of Underlying results to IFRS results 2019 Net interest income 336.4 (14.1) 325.9 Net banking fee & commission income 593.0 593.0 Net other income 213.4 252.0 Personnel expenses (696.9) (696.9) Other operating expenses (279.0) (4.5) (301.4) Provisions (18: — (24
Slide 39: Balance sheet (IFRS)
EFG International Balance sheet (IFRS) incHEmillion) ee 2018 ec 2019 Cash and balances with central banks Treasury bills and other eligible bills Due from other banks Derivative financial instruments. Financial asset at fair value through P&L Financial asset at fair value through other comprehensive
Slide 40: Breakdown of AuM
EFG International E rG Breakdown of AuM 31.12.19 By catego Ga carb Cash & deposits 25% 23% 34.8 Bonds 25% 23% 35.3 Equities 21% 30% 45.8 Structured products 3% 3% 47 Loans 14% 13% 19.8 Hedge funds 3% — 29 Other 10% 10.6 31.12.19 44% 42% 64.0 cur 29% 27% 41.0 GBP 1% 10% 15.1 AUD 1% 8% 12.7 CHF — — 97
Slide 41: Segmental analysis 2019
— ErG Segmental analysis 2019 7 . Global Performance summary Switzerlani ‘ontinental . y Investment Corporate (in CHF m) & Italy Europe pata eaatite Solutions i Overheads 5 veel Segment revenues 299.2 196.6 108.4 146.3 146.3 109.9 133.6 30.6 - 1,170.9 Segment expenses (271.6) (174.8) (106.2) (126.3)
Slide 42: Segmental analysis 2018
_ ErG Segmental analysis 2018 - Global Performance summary Switzerlani ‘ontinental ae Corporate (in CHF m) & Italy Europe PSsiRadits Solt i Overheads > Tell Segment revenues 310.5 198.9 121.2 147.7 141.6 99.3 135.4 (9.0) - 1,145.6 Segment expenses (278.1) (183.7) (110.3) (124.9) (116.6) (98.9) (46.1
Slide 43: Update on Life Insurance Exposures
EFG International E rG Update on Life Insurance Exposures Life Insurance related portfolios » Legacy exposures acquired more than 10 years ago » Lombard loan portfolio (LFS) was restructured in December to a direct exposure - economic exposure remained unchanged. 138 insured (death benefit: USD 526
Slide 44: Update on Life Insurance Exposures (I)
EFG International E rG Update on Life Insurance Exposures (I) Direct holding of life insurance » Death benefit: CHF 1,771.6 mn + Non-underlying policies for 255 insureds (2018: 145) of += * Carrying value: CHF 804.3 mn + P&L impact: CHF 11.7 mn an average age of 91.2 years. Portfolio * 2019 premium:
Slide 45: Contacts
EFG International Contacts FG Investors Media Investor Relations Jens Brueckner Head of Investor Relations Phone +41 44 226 1799 jens.brueckner@efginternational.com EFG International AG Bleicherweg 8 8001 Zurich Switzerland Phone +41 44 212 73 77 Fax +41 44 226 18 55 efginternational.com Reuters: EF