Slide 1: Bellevue Group Results 2023
Bellevue Group Results 2023 Presentation for investors, analysts and the media Kuesnacht, February 27, 2024
Slide 2: Challenging year 2023 with a constructive outlook
EXECUTIVE SUMMARY Challenging year 2023 with a constructive outlook Overview of the market environment, financial figures, highlights and outlook • Market performance 2023 driven by interest rate developments and external events • Market rally in the US and in the healthcare sector driven by only a
Slide 3: Agenda
Agenda 1 Market environment Gebhard Giselbrecht, Group CEO 2 Summary of Fiscal 2023 Gebhard Giselbrecht, Group CEO 3 Results for Fiscal 2023 Stefano Montalbano, Group CFO 4 Priorities 2024 Gebhard Giselbrecht, Group CEO 5 Questions & Answers A Appendix 3
Slide 4: Market environment
Market environment Gebhard Giselbrecht, Group CEO 4
Slide 5: After a sharp rise in interest rates, interest rate cuts expected in 2024
MARKET ENVIRONMENT After a sharp rise in interest rates, interest rate cuts expected in 2024 Overview of the rise in interest rates and the interest rate trend expected by the market US Fed Funds Rate (in %) US Fed Funds Rate – projected (in %) Fed Funds rate rose from 4.5% to 5.5% in 2023 Significa
Slide 6: Strong rebound in small and mid cap healthcare stocks in Q4 2023
MARKET ENVIRONMENT Strong rebound in small and mid cap healthcare stocks in Q4 2023… Relative performance of small and mid cap healthcare stocks (Russell 1000 Healthcare vs. Russell 2000 Healthcare) Russell 1000 Healthcare vs Russell 2000 Healthcare Russell 1000 Healthcare vs Russell 2000 Healthcare
Slide 7: ...which is reflected in the investment performance of our strategies
MARKET ENVIRONMENT ...which is reflected in the investment performance of our strategies Total return of Bellevue Group's healthcare strategies in comparison (31.12.2022 – 31.12.2023) Total return December 31, 2022 – December 31, 2023 Performance in USD 2023 Nov/Dec 23 120 Healthcare Trust +12.8% +3
Slide 8: Summary of Fiscal 2023
Summary of Fiscal 2023 Gebhard Giselbrecht, Group CEO 8
Slide 9: The difficult market environment is reflected in the key figures
SUMMARY OF FISCAL 2023 The difficult market environment is reflected in the key figures Overview of key figures for 2023 compared to the previous year Development of the most important key figures • Significantly lower AuM base due Assets under management Operating income Operating profit (EBTDA) 1)
Slide 10: AuM reduced by around 26% compared to the previous year...
SUMMARY OF FISCAL 2023 AuM reduced by around 26% compared to the previous year... Change in AuM 2018 – 2023 CHF million Development of assets under management • Assets under management down 26% 14'000 12'793 or around CHF 2.5 bn compared to the 12'038 previous year 12'000 10'599 9'413 -26.3% • Healt
Slide 11: ...with investment performance and customer reallocations as the main drivers
SUMMARY OF FISCAL 2023 ...with investment performance and customer reallocations as the main drivers Development of AuM base in 2023 CHF million Development of assets under management 507 • Reduction due in equal measure to 9'413 negative investment performance and client reallocations 74 • Gross ne
Slide 12: Asset Management service income declines with assets under management
SUMMARY OF FISCAL 2023 Asset Management service income declines with assets under management Operating income from asset management activities, 2018 – 2023 Development of income from asset CHF million management services 14'000 160.0 • Decline in revenues from asset 141.1 12'000 management services
Slide 13: Results for Fiscal 2023
Results for Fiscal 2023 Stefano Montalbano, Group CFO 13
Slide 14: Consolidated financial statements reflect the difficult year 2023
RESULTS FOR FISCAL 2023 Consolidated financial statements reflect the difficult year 2023 Main components of Group net profit • Underproportional decline in total Operating income Operating expenses Operating profit (CHF mn) (CHF mn) (CHF mn) operating income of around 15% due to improved financial
Slide 15: Revenue from asset management services driven by AuM
RESULTS FOR FISCAL 2023 Revenue from asset management services driven by AuM Detailed development of income from asset management services • Reduction in income from asset Breakdown of revenues from asset management services management services driven by the decline in management fees (lower 104.4 A
Slide 16: CIR increases to 71% despite reduction in operating expenses
RESULTS FOR FISCAL 2023 CIR increases to 71% despite reduction in operating expenses Development of operating expenses and CIR Personnel expenses Operating expenses • Despite further investments in personnel and (CHF mn) (CHF mn) platform, lower overall operating expenses • Entrepreneurial and earni
Slide 17: Bellevue well-capitalised with an equity-financed balance sheet
RESULTS FOR FISCAL 2023 Bellevue well-capitalised with an equity-financed balance sheet As of December 31, 2023 (consolidated) CHF million Balance sheet (as of December 31, 2023) 122 38.8 122.5 CHF mn CHF mn cash Shareholders’ equity 79 -43 78.7% 14.2% Equity ratio* Return on equity 33 * Balance she
Slide 18: Attractive dividend of CHF 1.15 proposed for the 2023 financial year
RESULTS FOR FISCAL 2023 Attractive dividend of CHF 1.15 proposed for the 2023 financial year Dividend proposal 2023 and historical development of the dividend Surplus equity Proposed dividend of CHF 1.15 per share CHF million • Attractive dividend of CHF 1.15 per share 33 despite difficult market en
Slide 19: Priorities 2024
Priorities 2024 Gebhard Giselbrecht, Group CEO 19
Slide 20: Investment performance and client activities key in 2024
PRIORITIES 2024 Investment performance and client activities key in 2024 Priorities 2024 • Focus on strengthening investment performance of existing products (enhancement of investment processes and strategy, ultilisation of data science) Products & Investment • Review and focus existing product ran
Slide 21: Promising outlook for BB Biotech AG
PRIORITIES 2024 Promising outlook for BB Biotech AG BB Biotech AG Total return (rebased) over 10 years December 31, 2013 – December 31, 2023, in CHF • In November 2023, BB Biotech AG celebrated its 30th 500 anniversary in the company of long-standing investors and loyal associates 400 • Substantial
Slide 22: Bellevue Medtech & Services and Bellevue Digital Health well positioned
PRIORITIES 2024 Bellevue Medtech & Services and Bellevue Digital Health well positioned Bellevue Medtech & Services und Bellevue Digital Health Bellevue Medtech & Services Bellevue Digital Health Equity fund investing in companies in the healthcare sector with focus on medical Equity fund investing
Slide 23: Bellevue AI Health relies on financially strong companies with AI expertise
PRIORITIES 2024 Bellevue AI Health relies on financially strong companies with AI expertise Bellevue AI Health Key arguments for GenAI in healthcare To the point • Healthcare industry has huge big data pools built up over decades Improvement in admin efficiency Doctors and nurses devote up to 25% of
Slide 24: Bellevue Obesity Solutions – new ways to treat obesity
PRIORITIES 2024 Bellevue Obesity Solutions – new ways to treat obesity Bellevue Obesity Solutions Key facts on obesity To the point • Obesity pandemic: Unprecedented in scope and significant unmet needs • Inadequate medical treatment (only about 2% penetration) of the world population of annual spen
Slide 25: Entrepreneur strategies: strong performance and attractive valuation
PRIORITIES 2024 Entrepreneur strategies: strong performance and attractive valuation Bellevue Entrepreneur Europe Small & Bellevue Entrepreneur Switzerland Bellevue Entrepreneur Europe Small Bellevue Entrepreneur Switzerland Equity fund investing in owner-managed entrepreneur companies in Europe Equ
Slide 26: After a negative year in 2022, multi-asset strategies deliver attractive returns
PRIORITIES 2024 After a negative year in 2022, multi-asset strategies deliver attractive returns Bellevue Global Macro & Bellevue Option Premium Bellevue Global Macro Bellevue Option Premium Absolute return strategy with daily liquidity Volatility strategy that systematically collects option premium
Slide 27: Launch of "Entrepreneur Private II" next milestone for Private Markets
PRIORITIES 2024 Launch of "Entrepreneur Private II" next milestone for Private Markets Developments in Private Markets • Portfolio companies deliver successful results in a challenging market environment thanks to their Successful technology, product and market leadership as well as very solid balan
Slide 28: Client service to be further intensified in 2024
PRIORITIES 2024 Client service to be further intensified in 2024 Client interactions 2023 and 2024 Strengthening Active coverage of our Frankfurt based of investors in the UK sales team with two Customer service is of the highest for BB Biotech and Senior Sales importance to Bellevue, especially in
Slide 29: Sustainability an important factor in Bellevue Group's business strategy
PRIORITIES 2024 Sustainability an important factor in Bellevue Group’s business strategy Highlights 2023 CO2 emissions (Scope 1, 2, 3) Sustainable investments 1) • Total CO2 emissions Bellevue • 62% sustainable Group: 608 t investments • Financed emissions: CO2 • 94% investments with intensity of po
Slide 30: Priorities for 2024 are aligned with our long-term targets
PRIORITIES 2024 Priorities for 2024 are aligned with our long-term targets Long-term targets and priorities 2024 Long-term targets Priorities 2024 • >50% of AuM exceed benchmark 1 Investment performance • >50% of AuM in 1st and 2nd quartile vs. peers 2 AuM base • Organic growth of 5-10% p.a. 1. Prod
Slide 31: Questions & Answers
Questions & Answers ™ Bellevue | =
Slide 32: Appendix
Appendix 22 Bellevue | s2
Slide 33: Consolidated financial statements 2023
APPENDIX Consolidated financial statements 2023 Consolidated income statement CHF 1,000 1.1.-31.12.2023 1.1.-31.12.2022 Change Revenues from asset management services 81 793 104 383 - 22 590 Income from financial investments - 915 - 10 002 + 9 087 Net other income 1 013 1 481 - 468 Operating income
Slide 34: Consolidated financial statements 2023
APPENDIX Consolidated financial statements 2023 Alternative Performance Indicators CHF 1,000 1.1.-31.12.2023 1.1.-31.12.2022 Change Operating income 81 891 95 862 - 13 971 Personnel expenses - 43 823 - 46 988 + 3 165 Other operating expenses - 14 362 - 14 056 - 306 Operating expenses - 58 185 - 61 0
Slide 35: Consolidated financial statements 2023
APPENDIX Consolidated financial statements 2023 Key figures (1/2) 1.1.-31.12.2023 1.1.-31.12.2022 Change Consolidate income statement Cost/Income ratio 71.1% 63.7% - Earnings per share (in CHF) 1.15 1.90 - 39.5% 31.12.2023 31.12.2022 Change Asset under management (in CHF million) Total managed asset
Slide 36: Consolidated financial statements 2023
APPENDIX Consolidated financial statements 2023 Key figures (2/2) 31.12.2023 31.12.2022 Change Dividend Ordinary dividend per share (in CHF) 1.15 2.00 - 42.5% Dividend yield 4.7% 5.3% - Staff (FTEs) Number of staff (at cutoff date) 94.4 96.9 - 2.6% Number of staff (annual average) 98.8 92.7 + 6.6% S
Slide 37: After a rebound at the end of the year, many healthcare strategies close higher
APPENDIX After a rebound at the end of the year, many healthcare strategies close higher Returns of traditional and alternative investment strategies in 2023 Specialized healthcare strategies Traditional and alternative investment strategies *** Absolute performance 2023, in USD Absolute performance
Slide 38: ESG Highlights 2023 – financed CO2 emissions
APPENDIX ESG Highlights 2023 – financed CO2 emissions CO2 emissions at portfolio level – Carbon intensity Scope 1, 2, 3 according to PCAF methodology Financed emissions – CO2 footprint1 Financed emissions – CO2 Intensity2 Scope 1, 2, 3 t CO2 / mn CHF invested • 528.3 t CO2 / million turnover asset-w
Slide 39: Shareholder base
APPENDIX Shareholder base Structure of the shareholder base as of December 31, 2023 Attractive value creation leads to stable Non-registered shareholder base public shareholders (n/a) • Strong commitment of core shareholders 11.2% • Reduction in the proportion of managment and employees to 11.3% 34.
Slide 40: Bellevue Group AG share price performance
APPENDIX Bellevue Group AG share price performance Bellevue Group share price performance in comparison (BBN SW) Total return in CHF (5 years) Indexed to 100 (in %) 350 Market capitalization as of 300 Bellevue Group AG 31.12.23 250 +138.9% CHF 330 mn 200 Partners Group Holding +89.5% AG 150 +21.3% P
Slide 41: Bellevue – specialized asset management
APPENDIX Bellevue – specialized asset management Company profile Established 1993 Credo Pure asset Differentiated “We eat our own cooking” manager with investment competencies high specialization for an attractive offering Market cap. CHF 330 mn Number of employees (in FTE) 94 AuM CHF 6.9 bn Entrepr
Slide 42: Corporate Events & Contact
Corporate Events & Contact Corporate Events March, 20, 2024 Annual General Meeting 2024 July 25, 2024 Publication Half-year results 2024 Investor Relations Stefano Montalbano CFO Bellevue Group Phone +41 44 267 67 00 ir@bellevue.ch Media Relations Jürg Stähelin IRF Phone +41 44 244 81 51 staehelin@i
Slide 43: Disclaimer
Disclaimer This document was produced by and the opinions expressed are those of Bellevue Group AG («Bellevue») as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation
Slide 44: Bellevue Group AG
Bellevue Group AG Seestrasse 16 CH-8700 Küsnacht T +41 44 267 67 00 info@bellevue.ch www.bellevue.ch 44