Efg International Ag · SIX:EFGN

Efg International — Investor Day (March 2019)

135 slides from Efg International's investor day presentation, Mar 13, 2019

  1. Slide 1: 2019-22 Strategic Plan

    EFG International 2019-22 Strategic Plan 13 March 2019 Zurich Investor Update 2019 13 March 2019 Page 1

  2. Slide 2: Important Legal Disclaimer

    EFG International 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, purch

  3. Slide 3: Investor Update 2019 – Agenda

    EFG International Investor Update 2019 – Agenda Topic Speaker 2019 – 2022 strategic plan & financial Giorgio Pradelli, Chief Executive Officer projections Dimitris Politis, Chief Financial Officer Q&A Break Investment Solutions & Global Markets Renato Cohn, Deputy CEO & Head of Investment Solutions

  4. Slide 4: 2019-22 Strategic Plan

    2019-22 Strategic Plan Giorgio Pradelli – Chief Executive Officer Investor Update 2019 13 March 2019 Page 4

  5. Slide 5: 2019-22: Profitable growth and effective capital deployment

    EFG International 2019-22: Profitable growth and effective capital deployment Financial targets 2022  EFG is emerging stronger from BSI acquisition 4-6% NNA growth average1  EFG’s business model is distinctive in the current private banking environment Revenue 85 bps margin  Our execution engine

  6. Slide 6: EFG is emerging stronger from BSI acquisition

    EFG is emerging stronger from BSI acquisition Investor Update 2019 13 March 2019 Page 6

  7. Slide 7: EFG is emerging stronger from integration

    EFG International EFG is emerging stronger from integration  AuM up from CHF 83 bn in 2015 to CHF 1461 bn as of today, positioning EFG Increased among the top 10 Swiss private banks scale  Migrated to one single platform Strong capital  Increased total capital ratio from 15.7% in 2015 to 21.6% in

  8. Slide 8: Among top Swiss private banks with strong capital generation and a de-risked portfolio

    EFG International Among top 10 Swiss private banks with strong capital generation and a de-risked portfolio Improved scale and competitive market position Stronger capital generation Total Capital Ratio2, 2018 2015 (in %) 1461 21.6 83 15.7 +5.9p.p. Assets under Management (in CHF bn) 31 Dec 2015 31

  9. Slide 9: Stronger leadership team and enhanced governance

    EFG International Stronger leadership team and enhanced governance 8 leaders recently joined or have been appointed to new roles within the top team Executive Committee Global Business Committee Chief Executive Deputy CEO & Chief Financial Chief Operating Chief Risk Officer Chief Officer Head of Off

  10. Slide 10: EFG's business model is distinctive in the current private banking environment

    EFG’s business model is distinctive in the current private banking environment Investor Update 2019 13 March 2019 Page 10

  11. Slide 11: EFG operates in an attractive market

    EFG International EFG operates in an attractive market Global wealth will continue to grow, in a Private banking is an attractive industry volatile environment RoE for Higher HNW private volatility CHF Growth of Personal >10% banks, 6% HNW PFA1 until 55% index 63 tn Financial above cost 2022 YTD 201

  12. Slide 12: We want to be a leading Swiss private bank

    EFG International We want to be a leading Swiss private bank, renowned for its distinctive client and CRO approach Our vision What we aspire to be “We want to be a leading Swiss private bank renowned for its unique client approach.” Our mission What we do “We are a pure-play private bank, offering c

  13. Slide 13: What EFG stands for…

    EFG International What EFG stands for… Swiss pure-play … renowned for … and impartial private bank its distinctive product and with a global client service offering presence... approach…. to clients Local know-how Strong client focus Comprehensive in a global network of EFG CROs client solutions Inv

  14. Slide 14: What EFG stands for… clients perspective

    EFG International What EFG stands for… clients perspective EFG serves clients with impartial advice and agility  …have a trust-based partnership with CROs  …enjoy continuity and long-term relationships with CROs with no forced market segmentation  …benefit from a wide array of products and servic

  15. Slide 15: What EFG stands for… CROs perspective

    EFG International What EFG stands for… CROs perspective EFG serves clients with impartial advice and agility  …can build long-term and trust-based partnerships with clients, given that continuity of client relationships is guaranteed  …can provide truly independent and impartial advice as well as

  16. Slide 16: Cornerstones of EFG's CRO model

    EFG International Cornerstones of EFG’s CRO model Focus on superior  Clients are at the heart of everything we do service  Highly experienced and entrepreneurial CROs Long-term client  Longstanding relationships between CROs and clients relationships and  We build our business around people, not

  17. Slide 17: Clear set of target markets

    EFG International Clear set of target markets Main offshore target markets:  Asia Pacific  NRI  Middle East CEE/CIS  CEE / CIS UK  Southern Europe Switzerland  Latin America Southern Europe Middle East NRI Main onshore target markets: Asia Pacific  Switzerland Latin America  UK  Spain  Ita

  18. Slide 18: Specific target clients served by dedicated solutions

    EFG International Specific target clients served by dedicated solutions Clear target clients EFG’s dedicated solutions Discretionary Solutions  Tailored advisory  Tailored investment and real estate financing Advisory Solutions Ultra-high- net-worth  Sophisticated trading and direct (UHNW)1 acces

  19. Slide 19: Our execution engine is now shifting focus towards profitable growth

    Our execution engine is now shifting focus towards profitable growth Investor Update 2019 13 March 2019 Page 19

  20. Slide 20: Shifting focus from integration to profitable growth

    EFG International Shifting focus from integration to profitable growth Acquisition and integration Profitable growth 2016 2017 2018 2019  February:  April:  Post-IT migration:  EFG emerges stronger from BSI integration Announcement Renewed EFG brand Harmonisiation of  Leveraging on its value pr

  21. Slide 21: Global wealth will continue to grow…

    EFG International Global wealth will continue to grow… HNW personal …with 3-5% in mature markets and 7-10% in emerging markets financial assets1, CHF tn +8% +5% +4% 2.5 25.2 1.8 2018e 2022 21.2 13.3 11.5 Eastern Europe +3% 4.5 5.2 +10% Western Europe 9.8 Japan North America 6.6 +7% 6.1 8.0 China +7%

  22. Slide 22: Growth has always been part of our DNA

    EFG International Growth has always been part of our DNA Strong historical AuM growth track record In 2018, all regions were within target, except Switzerland & Italy Assets under Management Underlying NNA growth, 2018 (in CHF bn) (in %) 1461 Switzerland & 2/3 of CROs Italy -5.2% focused on 131 de-r

  23. Slide 23: Business development initiatives

    EFG International Business development initiatives CRO growth  Hiring of CRO teams as a top priority  Increase average portfolio size covered by existing CROs CRO productivity  Improve penetration of high-margin products, leveraging Investment Solutions as well as Global Markets access capabiliti

  24. Slide 24: Hiring of CRO teams as top priority

    CRO growth Hiring of CRO teams as top priority Return to pre-acquisition hiring rates: 70-100 new CROs per annum CROs (in #) 70-100  Set up Strategic Recruiting Team, gross CRO hires p.a. fully dedicated to CRO team hiring 7401 Shaw and CRO hiring as a critical KPI for Global 150  Partners Busines

  25. Slide 25: Capturing upside potential in CRO productivity

    CRO productivity Capturing upside potential in CRO productivity Underlying NNA/CRO in 2018 (in CHF mn)  Systematically manage CROs’ client pipeline 10-12  Strengthened role of “Head of Private 9 Banking”, focused on driving commercial performance  Creation of the new “Team Leader” role, focused o

  26. Slide 26: Switzerland back to growth

    Switzerland back to growth Switzerland back to growth Almost tripling the commercial capacity in Switzerland CRO focus (in %)  Refocus CRO teams from de-risking to business development (from ~60 to 187 CROs) De-risking ~67%  Increase penetration of Swiss HNW residents, leveraging our domestic 100%

  27. Slide 27: Extending our international footprint

    New business initiatives Extending our international footprint AuM ambition for 2022 (in CHF bn) Open branch in Milan to serve onshore Italian clients ~3 Italy (opening in 1Q 2019) Portugal Set up branch in Portugal (opening in 2Q 2019) ~1.5 ~3 Middle Expand Middle East activities in UAE (opening in

  28. Slide 28: Complementing organic with external growth

    External growth Complementing organic with external growth Playing an active role in the private banking market consolidation Current  Add-on acquisitions to increase critical mass (including asset markets deals) Targets New  Increase exposure to markets with superior growth potential markets Valu

  29. Slide 29: Key initiatives to enable growth

    EFG International Key initiatives to enable growth Investment  Increase penetration of high-margin products Solutions and  Unlock potential of Global Markets capabilities, providing direct market Global Markets access to clients  Increase operational efficiency of our platform Operations and tech

  30. Slide 30: Increasing penetration of high-margin products

    Investment Solutions and Global Markets Increasing penetration of high-margin products Discretionary and advisory mandates (in % of AuM)  Fully deploy discretionary mandates and >60% advisory solutions  Increase number of Investment Counsellors and connect them with CROs Peers 40% and clients rang

  31. Slide 31: Increasing efficiency of operating platform

    Operations and technology Increasing efficiency of operating platform  Re-engineer our processes through Cost-income ratio streamlining, automation, centralisation (in %) Operational to improve client and CRO experience efficiency  Review of personnel and non-personnel 83% G&A expenses 72-75%  Fu

  32. Slide 32: Fostering people, talent and brand

    People, EFGtalent and brand International Fostering people, talent and brand  Encourage entrepreneurial thinking across our employees globally  Fully embed our corporate values in key HR processes People  Foster common corporate culture through internal communication  Launch dedicated initiative

  33. Slide 33: 2022 financial targets

    EFG International 2022 financial targets 4-6% NNA growth average1 Revenue margin 85 bps Cost-income ratio 72-75% RoTE >15% Minimum CET1 ratio: 14%2 Capital management guidance Dividend payout: 50%3 Note: Financial targets and capital management guidance include Shaw and Partners 1 Compound Annual Gr

  34. Slide 34: Long-Term Incentive Plan to further align interests with shareholders

    EFG International Long-Term Incentive Plan to further align interests with shareholders  Proposal to introduce a Long-Term Incentive Plan (LTIP) for senior management1, subject to achieving medium-term targets  Vesting in 2022, 2023 and 2024  100% Restricted Stock Units  Profitability and growth

  35. Slide 35: 2019-22 financial targets

    2019-22 financial targets Dimitris Politis – Chief Financial Officer Investor Update 2019 13 March 2019 Page 35

  36. Slide 36: 2022 financial targets

    EFG International 2022 financial targets 4-6% NNA growth average1 Revenue margin 85 bps Cost-income ratio 72-75% RoTE >15% Minimum CET1 ratio: 14%2 Capital management guidance Dividend payout: 50%3 Note: Financial targets and capital management guidance include Shaw and Partners 1 Compound Annual Gr

  37. Slide 37: Substantial AuM growth potential

    EFG International Substantial AuM growth potential Growth has always been part of our DNA In 2018, all regions were within target, except Switzerland & Italy Assets under Management Underlying NNA growth, 2018 (in CHF bn) (in %) 1461 Switzerland & Italy -5.2% 131 Continental Europe +4.3% 83 Asia +3.

  38. Slide 38: Growth targets: 4-6% NNA average growth

    EFG International Growth targets: 4-6% NNA average growth AuM evolution and NNA growth (in CHF bn) +4-6% p.a.1 0 Shaw and 11 Partners  Balanced approach to growth, based on multiple levers 131  AuM growth does not assume any market effects  Excludes future acquisitions 2018 NNA NNA NNA from Marke

  39. Slide 39: Drivers of NNA growth

    EFG International Drivers of NNA growth CRO hires per year, # 102  Re-focus on CRO hiring post 74 integration New CRO 58  Target seasoned CROs/teams hires  Strong pipeline in 2019 with over 50 39 30 new CROs already signed or approved 2014 2015 2016 2017 2018 Underlying NNA/CRO in 2018, CHF mn 9.

  40. Slide 40: Growth targets: 85 bps revenue margin

    EFG International Growth targets: 85 bps revenue margin RoAuM target drivers (in bps) 85 84 87 84 85 bps 2015 2016 2017 2018 Margin Asset mix Global 2022 compression Markets and Treasury revenue growth 2019-22 Investor Update 2019 13 March 2019 Page 40

  41. Slide 41: Drivers of revenue margin target of 85 bps

    EFG International Drivers of revenue margin target of 85 bps Mandate penetration target (Discretionary and Advisory) (in % of AuM)  Shift to high-value products and >60% services  Step change in advisory 40% penetration to meet client needs Mandate Peers range 39% and regulatory requirements penet

  42. Slide 42: Update on cost synergies from BSI transaction

    EFG International Update on cost synergies from BSI transaction Delivery of additional CHF 79 mn of cost synergies in 2018, exceeding cumulative target Cumulative targeted cost synergies (pre-tax) (in CHF mn)  Delivered cumulative cost synergies of 240 CHF 187 mn for 2018, exceeding target for the

  43. Slide 43: Further improving efficiency by 2022

    EFG International Further improving efficiency by 2022 Cost-income (C/I) target drivers (in %) 83% 75% 72-75% 2018 C/I Remaining 2019-22 2019-22 Medium- Scale Investment Long-Term 2022 C/I synergies Support Front term effect from for growth1 Incentive target Functions Support C/I expected Plan initi

  44. Slide 44: Strong and improving capital position

    EFG International Strong and improving capital position Successfully strengthened capital position to improve EFG’s optionality Total Capital Ratios1 (in %) CET1 ratio  Above average capital position 21.0% 21.6%  Maintenance of dividend 20.0% payment throughout 5.9p.p. integration period 15.7%  I

  45. Slide 45: Capital deployment in the medium term

    EFG International Capital deployment in the medium term Underlying RWA used CET1 Ratio1 (in %) profitability for organic Dividend 150-200 bps growth pay-out  Recurring profitability to finance (50%) organic growth and enhanced dividend distribution (50% 17.6% payout)  Available capital allows for

  46. Slide 46: Opportunities and potential risks

    EFG International Opportunities and potential risks Estimated impact on 2022 operating income (in CHF mn) >100  Increase in interest rates: Based on parallel shift of 100bps in CHF and EUR1 Increase in Opportunities interest rates and expected impact >50  AuM market appreciation: 2% p.a. AuM growt

  47. Slide 47: Executing the plan

    EFG International Executing the plan 2019-2020 2021-2022 More Operational Efficiency Executing remaining synergies Cost Digital solutions management Investment for growth, e.g. CRO hiring Dividend payout ratio increase to 50% Capital Management Control management Managing excess capital: Acquisition

  48. Slide 48: 2019-22 Strategic Plan: Key takeaways

    2019-22 Strategic Plan: Key takeaways Giorgio Pradelli – Chief Executive Officer Investor Update 2019 13 March 2019 Page 48

  49. Slide 49: 2019-22: Profitable growth and effective capital deployment

    EFG International 2019-22: Profitable growth and effective capital deployment Financial targets 2022  Strong, new, committed management team 4-6% NNA growth  EFG’s business model is distinctive and competitive in average1 serving clients and attracting CROs Revenue 85 bps  We have executed the in

  50. Slide 50: Q&A

    Q&A Investor Update 2019 13 March 2019 Page 50

  51. Slide 51: Investor Update 2019 – Agenda

    EFG International Investor Update 2019 – Agenda Topic Speaker Giorgio Pradelli, Chief Executive Officer 2019 – 2022 strategic plan & financial projections Dimitris Politis, Chief Financial Officer Q&A Break Investment Solutions & Global Markets Renato Cohn, Deputy CEO & Head of Investment Solutions

  52. Slide 52: Investment Solutions & Global Markets

    Investment Solutions & Global Markets Renato H. Cohn – Deputy Chief Executive Officer and Head of Investment Solutions Investor Update 2019 13 March 2019 Page 52

  53. Slide 53: Renato H. Cohn – Deputy Chief Executive Officer and Head of Investment Solutions

    EFG International Renato H. Cohn – Deputy Chief Executive Officer and Head of Investment Solutions  Deputy CEO and Head of Investment Solutions  Member of EFG’s Executive Committee  Prior work experience: ― 2015-2017: Group Deputy CEO of BSI SA ― 2009-2015: Co-Head of BTG Pactual Wealth Managemen

  54. Slide 54: EFG provides dedicated solutions for all client needs

    EFG International EFG provides dedicated solutions for all client needs Clear target clients EFG’s dedicated solutions Discretionary Solutions  Tailored advisory  Tailored investment and real estate financing Advisory Solutions Ultra-high- net-worth  Sophisticated trading and direct (UHNWI)1 acce

  55. Slide 55: Our organisation builds on two pillars to provide distinctive solutions…

    EFG International Our organisation builds on two pillars to provide distinctive solutions… Investment Solutions EFG Global Markets 24 hours Investment EFG Asset Management execution Finance services for Advisory and Real Wealth Structured CROs, EAM Solutions Estate Solutions products and Direct Disc

  56. Slide 56: Investment Solutions is well prepared to build on strengths to support growth

    Investment Solutions EFG International Investment Solutions is well prepared to build on strengths to support growth going forward Discretionary, Advisory and Funds AuM CHF bn CHF >80 bn Connecting BSI and expanding the Investment Building on strengths to Solutions drive penetration of platform CHF

  57. Slide 57: Clients and CROs can rely on a deep pool of expertise

    Investment Solutions EFG International Clients and CROs can rely on a deep pool of expertise Deep pools of expertise… …made accessible through… 1 Global presence with local know-how Trading Portfolio consultants Managers Latest research opinions and concrete 2 Global Investment investment ideas mark

  58. Slide 58: Global presence with local know-how

    Investment Solutions EFG International 1 Global presence with local know-how IS resources GM resources Continental Europe and UK ~135 ~5 Switzerland ~90 ~50 Asia Latin America ~35 ~15 ~25 ~5 >280 dedicated Investment Solutions (IS) and >70 Global Market (GM) professionals across our 5 global regions

  59. Slide 59: Latest research opinions …

    Investment Solutions 2 Latest research opinions … Publication of Macro Economic Reports leveraging from in-house research capabilities DAILY The market-shaping events of the past 24 hours. WEEKLY The week’s main macroeconomic news. MONTHLY Global House View Investment Ideas; Asset allocation guideli

  60. Slide 60: … and concrete investment ideas …

    Investment Solutions 2 … and concrete investment ideas … DAILY Markets Insight Instant Messaging Tool dedicated to Market Catalysts and Trade Opportunities WEEKLY Latest investment themes and how to monetise them Equity catch of the week Fixed Income buy recommended list and high conviction ideas AD

  61. Slide 61: … with broad media reach and recognition

    Investment Solutions 2 … with broad media reach and recognition Media coverage: Example prizes and other recognitions: Gold award for Discretionary Portfolio Management, Asia EFGAM UK GBP and USD Balanced top peer groups over 1 and 3 years Awards for Awards for “US “Swiss Select Growth” Fund: Equity

  62. Slide 62: Discretionary mandate services

    Investment Solutions 3 Discretionary mandate services Understanding a client’s objectives, Providing flexible solutions to meet client needs expectations and circumstances and requirements Core Complementary Bespoke >100 strategies available with balance of global and local capabilities Investor Upd

  63. Slide 63: New Advisory Services at a glance

    Investment Solutions 3 New Advisory Services at a glance “Institutional-like With EFG Pro, CRO partners with the  Duality of investment offering, investment specialist team, focusing advice on PRO designed to match on individual asset classes and single complex needs and portfolio construction on a

  64. Slide 64: Central advisory platform and local Investment Counsellors

    Investment Solutions EFG International 4 Central advisory platform and local Investment Counsellors with central role in dissemination of investment content Global Central Local Research Advisory Investment 590 CROs Clients Hub Platform Counsellors >280 FTE  Approved &  Investment  Based in  Lev

  65. Slide 65: Technology as an enabler

    Investment Solutions 5 Technology as an enabler EFG has developed a proprietary Investment Advisory Tool (IAT), that empowers CROs and Investment Counsellors to service their clients more efficiently. The IAT facilitates our CROs to:  Leverage EFG’s house view on asset allocation and investment the

  66. Slide 66: Significant revenue potential by fully deploying discretionary and advisory mandates

    Investment Solutions Significant revenue potential by fully deploying discretionary and advisory mandates… …Focusing on low-penetration locations Penetration of Discretionary and Advisory Return on Assets under Management (in % of AuM) (in bps) 116 69 Location a 61% 47 121 86 Location b 41% 71 135 7

  67. Slide 67: Investment Solutions and Global Markets: 2019-22 key initiatives

    EFG International Investment Solutions and Global Markets: 2019-22 key initiatives Mandate penetration target (Discretionary and Advisory)  Set up integrated research platform using (in % of AuM) Strengthen technology >60% research  Strengthen global research capabilities capabilities across asset

  68. Slide 68: Key takeaways from Investment Solutions

    EFG International Key takeaways from Investment Solutions We have a full set of flexible and innovative products, comprehensive research and investment capabilities We are ready to fully deploy our solutions across our global regions There is significant revenue potential from increasing penetration

  69. Slide 69: Operations & Technology

    Operations & Technology Christian Flemming – Chief Operating Officer Investor Update 2019 13 March 2019 Page 69

  70. Slide 70: Christian Flemming – Chief Operating Officer

    EFG International Christian Flemming – Chief Operating Officer  Chief Operating Officer since January 2018  Member of the Executive Committee  Prior work experience: ― Head of Finance at Banco BTG Pactual S.A. ― Chief Operating Officer and Chief Financial Officer at BSI ― Chief Operating Officer

  71. Slide 71: COO – Chief Operating Officer

    EFG International COO – Chief Operating Officer Our dual mission Continuously improve our Target a smooth client experience, efficiency and operating leverage enabling our CROs through a with focus on centralising our practical and realistic digital functions around lean local offering presences Are

  72. Slide 72: Our achievements

    EFG International Our achievements Improved scalability and operating leverage will allow us to grow with marginal added costs Total FTE  Completed 9 IT migrations to a single technology 3,989 platform 3,153 -21% Single  Coordinated and rolled out technology technology improvements globally 419 FT

  73. Slide 73: Setting the foundation for future growth

    EFG International Setting the foundation for future growth 2016 2017 2018 2019 - 2022 BSI acquisition Platform Digital solutions 9 IT migrations stabilisation & Integration globally and 6 optimisation planning legal integrations Digital enablers Operational First migration efficiency Investor Update

  74. Slide 74: Digital solutions: 2019-22 key initiatives

    Digital EFG solutions International Digital solutions: 2019-22 key initiatives  Roll out proprietary support tool for CROs (“Investment Advisory Tool”) Client and CRO  Upgrade mobile banking functionality solutions  Enhance platform for Independent Asset Managers  Increase level of Straight Thro

  75. Slide 75: Operational efficiency: 2019-22 key initiatives

    Operational efficiency EFG International Operational efficiency: 2019-22 key initiatives  Re-engineering of our processes through streamlining, automation, Process centralisation to improve client and CRO experience re-engineering  Ongoing centralisation of operational processes to maximise use of

  76. Slide 76: Further improving efficiency by 2022…

    EFG International x Detailed next Further improving efficiency by 2022… Cost-income (C/I) target drivers (in %)  Run-rate effect from FTE reductions 83% A  Efficiencies in support functions  Cost management in G&A 75% 72-75% B  Efficiency actions on support functions with main focus on rationali

  77. Slide 77: ...Through full synergy achievement…

    EFG International A ...Through full synergy achievement… Cumulative targeted cost synergies (pre-tax) (in CHF mn)  Run-rate efficiencies from ~30% 240 FTE reductions 187 79  Efficiencies in support ~30% 180 functions 108 78 108  Cost management in G&A ~40% + Real Estate 50 0.0 30 30 Total 2019 (i

  78. Slide 78: ...And add-on efficiencies

    EFG International B ...And add-on efficiencies Efficiency targets – support staff/CRO (ratio)  Efficiency actions on support functions – Rationalisation of booking centres Support functions Front support – Streamlining of location footprint – Ongoing centralisation of operational 3.5 processes to m

  79. Slide 79: Key takeaways from COO

    EFG International Key takeaways from COO Relevant cost reduction opportunities beyond the achieved synergies Scalability of our operating model will help us to reach our efficiency targets in a growth environment Refocus Technology from integration to digital solutions Investor Update 2019 13 March

  80. Slide 80: Risk

    Risk Ranjit Singh – Chief Risk Officer Investor Update 2019 13 March 2019 Page 80

  81. Slide 81: Ranjit Singh – Chief Risk Officer

    EFG International Ranjit Singh – Chief Risk Officer  Chief Risk Officer since January 2019  Member of the Executive Committee and Global Business Committee  Prior work experience: ― 2013 – 2018: Chief Risk Officer Standard Life Aberdeen PLC and Member Executive Committee ― 2007 – 2011: Chief Risk

  82. Slide 82: Risk and Compliance: 2016-18 achievements

    EFG International Risk and Compliance: 2016-18 achievements Major de-risking effort on legacy book coupled with substantial structural improvements Risk reduction over time Risk capabilities Risk Time 2016 2017 2018  Investment in de-risking the ex-BSI book in all  Global Risk Management framework

  83. Slide 83: Key actions in Risk and Compliance (1/2)

    EFG International Key actions in Risk and Compliance (1/2) Shift in mindset Mission 1 Risk 2 Compliance Switch from  “Faster, simpler and digital” global credit and investment de-risking to finance offering to clients including: – Risk control and – “Lombard at onboarding” preemption Effective- – D

  84. Slide 84: Key actions in Risk and Compliance (2/2)

    EFG International Key actions in Risk and Compliance (2/2) Strengthening the first line and sharing accountability Mission 1 Risk 2 Compliance Switch from  Empowerment and accountability in the first line of defence de-risking to with increase in the share of controls it is responsible for – Risk c

  85. Slide 85: Key takeaways from Risk

    EFG International Key takeaways from Risk Potential to further improve client and CRO experience for risk and compliance related processes Room for efficiency improvement and scalability Shift towards risk control / preemption and supporting the business for controlled growth Investor Update 2019 13

  86. Slide 86: Investor Update 2019 – Agenda

    EFG International Investor Update 2019 – Agenda Topic Speaker Giorgio Pradelli, Chief Executive Officer 2019 – 2022 strategic plan & financial projections Dimitris Politis, Chief Financial Officer Q&A Break Investment Solutions & Global Markets Renato Cohn, Deputy CEO & Head of Investment Solutions

  87. Slide 87: Switzerland & Italy Region

    Switzerland & Italy Region Franco Polloni – Head of Switzerland & Italy Region Investor Update 2019 13 March 2019 Page 87

  88. Slide 88: Franco Polloni – Head of Switzerland & Italy Region

    EFG International Franco Polloni – Head of Switzerland & Italy Region  Head of Switzerland & Italy Region since July 2018  Member of the Global Business Committee  Member of the Executive Committee of EFG Bank  Prior work experience: ― 2014 – 2017: Head of Private Clients & Asset Management and

  89. Slide 89: Overview: Switzerland & Italy Region (1/2)

    EFG International Overview: Switzerland & Italy Region (1/2) Our main locations Key figures, 2018 Booking Centre Other locations AuM CHF 41 bn Zurich Underlying NNA growth -5.2% Revenues CHF 311 mn Lausanne Locarno RoAuM1 86 bps Geneva Lugano Chiasso CROs 187 1 Including Global Markets & Treasury co

  90. Slide 90: Overview: Switzerland & Italy Region (2/2)

    EFG International Overview: Switzerland & Italy Region (2/2) Target clients and markets Elements of distinctiveness Offshore target markets  Three strong hubs with critical mass in Switzerland (Geneva, Zurich, Lugano), focused on different target clients  Asia Pacific  CEE/CIS  Dedicated focus o

  91. Slide 91: Switzerland & Italy: Market outlook

    EFG International Switzerland & Italy: Market outlook HNW Personal Financial Assets 2018 Personal Financial Assets CAGR 2018-22 (in CHF trillion) (in %) Switzerland:  Largest offshore booking centre worldwide  Value proposition evolved to “Bank Safety” from “Bank Secrecy” paradigm 4.0 4%  Continu

  92. Slide 92: Our strategy has three pillars

    EFG International Our strategy has three pillars Our ambition for 2022  Refocus CRO teams from de-risking to growth, tripling the capacity of the region AuM growth, CAGR (in %)  Hire talented CROs to grow in international markets, CRO growth and with focus on our target client regions (CEE/CIS, pr

  93. Slide 93: Shifting focus on growth

    CRO growth and productivity Shifting focus on growth CRO focus Underlying NNA growth, 2018 (in %) (in %) CRO focus  Refocus CRO teams Business (187 CROs) from de- De-risking development risking to growth and business development, 3% tripling the capacity  Average NNA/CRO of De-risking ~67% +3% (CH

  94. Slide 94: Capturing significant upside potential

    CRO growth and productivity Capturing significant upside potential Underlying NNA per CRO (in CHF mn) 8  Strengthen commercial leadership 1 capabilities  Share systematic methodology ("Golden Standards") on client acquisition coaching and performance management -14  Increase CRO engagement and pr

  95. Slide 95: Launch Swiss domestic strategy

    Swiss domestic strategy Launch Swiss domestic strategy HNW PFA1 2018 AuM share of Swiss residents  Dedicated CRO hiring efforts in Geneva (in CHF) (in %) and Zurich, building on distinctiveness ~1 tn Fully of CRO model for domestic clients leverage  Target private wealth of Swiss domestic 44% entr

  96. Slide 96: Building Italian platform

    Italy Building Italian platform Leverage the experience in serving Italian clients to capture Italian onshore opportunities Geographical coverage Key initiatives Our ambition for 2022 Open Planned AuM  Open branch in Milan (March 2019), with (in CHF bn) focus on Italian domestic private banking ~70

  97. Slide 97: Key takeaways from Switzerland & Italy Region

    EFG International Key takeaways from Switzerland & Italy Region Refocus CROs from de-risking to growth and improve their productivity Launch a Swiss domestic strategy focused on HNW individuals and Independent Asset Managers Build an onshore platform in Italy leveraging our know- how in serving Ital

  98. Slide 98: Asia Pacific Region

    Asia Pacific Region Albert Chiu – Head of Asia Pacific Region Investor Update 2019 13 March 2019 Page 98

  99. Slide 99: Albert Chiu – Head of Asia Pacific Region

    EFG International Albert Chiu – Head of Asia Pacific Region  Head of Asia Pacific Region since June 2010  Member of Global Business Committee  Executive Chairman of EFG Bank’s Asia Pacific Region  Joined EFG Bank in 2000 and established EFG Bank’s Private Banking activities in Asia  Prior work

  100. Slide 100: Overview: Asia Pacific Region (1/2)

    EFG International Overview: Asia Pacific Region (1/2) Our main locations Key figures, 2018 Booking Centre Other locations AuM CHF 18 bn Shanghai Underlying NNA growth +3.5% Hong Kong Revenues CHF 142 mn Singapore Jakarta RoAuM1 86 bps CROs 99 1 Including Global Markets & Treasury contribution Invest

  101. Slide 101: Overview: Asia Pacific Region (2/2)

    EFG International Overview: Asia Pacific Region (2/2) Target clients and markets Elements of distinctiveness Offshore target markets  Pure-play Swiss private bank with banking license in both Hong Kong and Singapore  Asia Pacific  CEE/CIS  Present since 2000, profitable since 2001  Good brand r

  102. Slide 102: Asia Pacific: Market outlook

    EFG International Asia Pacific: Market outlook HNW Personal Financial Assets 2018 Personal Financial Assets CAGR 2018-22 (in CHF trillion) (in %) 14.6 10%  Asia Pacific is the fastest- growing wealth management market for HNWI – double- digit growth for the next 5 7% years  Emerging Asia with grow

  103. Slide 103: Our strategy has four pillars

    EFG International Our strategy has four pillars Our ambition for 2022  Dedicated sourcing team for CRO recruiting in the region  Strategically target team heads of leading private banks, AuM growth, CAGR CRO growth with focus on Hong Kong and Singapore (in %)  Leverage internal operating mechanis

  104. Slide 104: Right time to hire CROs given transformational strategy

    CROInternational EFG growth Right time to hire CROs given transformational strategy Key evidences Key actions  Participation in transformational growth story after the acquisition EFG is highly attractive to  Solid capital position to support growth  Dedicated sourcing team new CROs for CRO recru

  105. Slide 105: Gain exposure to selected target markets

    External growth Gain exposure to selected target markets Australia Indonesia China HNW Personal Financial Assets 2018 ~1,000 ~500 ~6,600 (in CHF bn) Personal Financial Assets CAGR 2018-22 >6.5% >8.5% >10% (in %)  Explore JV opportunities with local onshore operators with strong brand  Execute bolt

  106. Slide 106: Mutually beneficial partnership providing growth opportunities

    External growth EFG International Mutually beneficial partnership providing growth opportunities Rationale for the transaction with Shaw and Partners  The partnership will allow EFG access to a high growth market: Provide EFG an immediate access to the Australian market and enlarge EFG’s coverage i

  107. Slide 107: Key takeaways from Asia Pacific Region

    EFG International Key takeaways from Asia Pacific Region Asia Pacific is the fastest growing wealth management HNWI market in the world. EFG Asia Pacific is primed to capture the opportunity EFG Asia Pacific is an attractive destination for high calibre CROs. We will focus on hiring CROs team and al

  108. Slide 108: Continental Europe Region

    Continental Europe Region Adrian Kyriazi – Head of Continental Europe Investor Update 2019 13 March 2019 Page 108

  109. Slide 109: Adrian Kyriazi – Head of Continental Europe Region

    EFG International Adrian Kyriazi – Head of Continental Europe Region  Head of Continental Europe Region since 2014  Member of the Global Business Committee  Joined EFG in 2014  Prior work experience: ― 2010 – 2014: Credit Suisse as Managing Director, Market Group Head for Greece, CEE/Poland ― 19

  110. Slide 110: Overview: Continental Europe and Middle East (1/2)

    EFG International Overview: Continental Europe and Middle East (1/2) Our main locations Key figures, 2018 Booking Centre Other locations AuM CHF 31 bn Underlying NNA growth +4.3% Luxembourg Revenues CHF 199 mn France Spain Monaco RoAuM1 75 bps Portugal Greece/Cyprus CROs 148 Bahrain UAE 1 Including

  111. Slide 111: Overview: Continental Europe and Middle East (2/2)

    EFG International Overview: Continental Europe and Middle East (2/2) Target clients and markets Elements of distinctiveness Offshore target markets  Strong market position in Monaco (>30 years) and #1 international pure-play private bank in Spain (A&G founded in 1987 and acquired by EFG in  Asia P

  112. Slide 112: Continental Europe and Middle East: Market outlook

    EFG International Continental Europe and Middle East: Market outlook HNW Personal Financial Assets 2018 Personal Financial Assets CAGR 2018-22  Monaco and Spain remain highly (in CHF trillion) (in %) attractive locations to capture wealth 7%  Luxembourg presents attractive 4.2 onshore and offshore

  113. Slide 113: Our strategy has three pillars

    EFG International Our strategy has three pillars Our ambition for 2022  Actively leverage management and CRO networks AuM growth, CAGR (in %) to successfully identify and recruit candidates CRO growth  Build a cross-regional Strategic Recruiting Team 4% 6% with strong market intelligence Strengthe

  114. Slide 114: Expanding our Middle East presence…

    Middle East Expanding our Middle East presence… ... Through establishing a new entity in the UAE Geographical coverage Market attractiveness Key initiatives Open Planned  Middle East PFA growing at  Establish a UAE presence 7% p.a. until 2022  Recruit top-tier CRO teams (outgrowing the rest of th

  115. Slide 115: Setting up a presence in Portugal…

    Southern Europe Setting up a presence in Portugal… … Leveraging on our proven track record of successfully launching new businesses Our presence in Greece Our plan for Portugal  Successfully leveraged EFG’s brand  Establish a non-booking advisory branch via recognition and strong local relationshi

  116. Slide 116: Key takeaways from Continental Europe and Middle East

    EFG International Key takeaways from Continental Europe and Middle East Strong management and local presence in Spain, Monaco and Luxembourg; leverage on these to continue to attract CROs and their clients Proven track record for growing the EFG footprint, e.g., Greece and Cyprus Expand our presence

  117. Slide 117: Latin America Region

    Latin America Region Marcelo Coscarelli – Head of Latin America Region Investor Update 2019 13 March 2019 Page 117

  118. Slide 118: Marcelo Coscarelli – Head of Latin America Region

    EFG International Marcelo Coscarelli – Head of Latin America Region  Head of Latin America Region since January 2017  Member of the Global Business Committee  Prior work experience: ― 2012 – 2017: Citibank Latin America, serving as Managing Director and Head of the Wealth Management Business cove

  119. Slide 119: Overview: Latin America Region (1/2)

    EFG International Overview: Latin America Region (1/2) Our main locations Key figures, 2018 Booking Centre Other locations Miami AuM CHF 15 bn Nassau Grand Cayman Underlying NNA growth +5.1% Panama Bogota Revenues CHF 121 mn Lima RoAuM1 89 bps Santiago de Chile Montevideo CROs 76 1 Including Global

  120. Slide 120: Overview: Latin America Region (2/2)

    EFG International Overview: Latin America Region (2/2) Target clients and markets Elements of distinctiveness Offshore target markets  Swiss private bank with hub in Miami, US Broker-Dealer with global network of investment centres and custody capabilities  Asia Pacific  CEE/CIS  Local and exper

  121. Slide 121: Latin America: Market outlook

    EFG International Latin America: Market outlook HNW Personal Financial Assets 2018 Personal Financial Assets CAGR 2018-22 (in CHF trillion) (in %)  Renewed optimism in key 7% Latin American markets 3.2  Miami has established itself as the main wealth management hub for international clients in Lat

  122. Slide 122: Our strategy has three pillars

    EFG International Our strategy has three pillars Our ambition for 2022  Hire CRO teams, primarily in Miami and Switzerland hubs AuM growth, CAGR CRO growth (in %)  Deploy CRO “Team Leaders” with mandate to expand CRO hiring 4% 6%  Drive penetration of Investment Finance, discretionary mandates an

  123. Slide 123: Seize the opportunity in Brazil

    Brazil Seize the opportunity in Brazil Leverage partnership with BTG to foster client acquisitions  Build on tailored value proposition to establish client relationships (e.g., credit, access to global asset management) Today, no direct presence in Brazil, and underrepresentation in book  Partner

  124. Slide 124: Key takeaways from Latin America Region

    EFG International Key takeaways from Latin America Region EFG is relevant and competitive in LatAm, with favourable market conditions Focus on hiring CRO teams and fully leveraging Investment Solutions to drive productivity Seize the opportunity in Brazil, building on our partnership with BTG Invest

  125. Slide 125: UK Region

    UK Region Richard Thomas – Head of UK Region Investor Update 2019 13 March 2019 Page 125

  126. Slide 126: Richard Thomas – Head of UK Region

    EFG International Richard Thomas – Head of UK Region  Head of UK Region since January 2019  Member of the Global Business Committee  CEO of EFG Private Bank Ltd, London, EFG International’s wholly owned subsidiary in United Kingdom  Prior work experience: ― 2009 – 2018: Numerous senior manager p

  127. Slide 127: Overview: UK Region (1/2)

    EFG International Overview: UK Region (1/2) Our main locations Key figures, 2018 Booking Centre Other locations AuM CHF 19 bn Underlying NNA growth +3.4% Revenues CHF 148 mn Birmingham RoAuM1 95 bps London Guernsey CROs 72 Jersey 1 Including Global Markets & Treasury contribution Investor Update 201

  128. Slide 128: Overview: UK Region (2/2)

    EFG International Overview: UK Region (2/2) Target clients and markets Elements of distinctiveness Offshore target markets  Full banking license in the United Kingdom  Strong presence in London, which will remain a  Asia Pacific  CEE/CIS magnet for global wealth beyond Brexit  Strong competence

  129. Slide 129: UK: Market outlook

    EFG International UK: Market outlook HNW Personal Financial Assets 2018 Personal Financial Assets CAGR 2018-22 (in CHF trillion) (in %)  UK is a key market for global wealth beyond Brexit  Brexit has limited implications for non-EU residents and therefore limited impact on EFG 3.5 UK, with less th

  130. Slide 130: Our strategy has three pillars

    EFG International Our strategy has three pillars Our ambition for 2022  Focused post-Brexit market strategy increasing penetration of international target clients (in particular AuM growth, CAGR (in %) Focus on core CEE/CIS, Middle East) and on UK clients markets  Initiatives to further improve va

  131. Slide 131: Focus on core markets where EFG has expertise

    Focus on core markets Focus on core markets where EFG has expertise EFG with strong local value proposition… …and initiatives to further improve its positioning  Full banking license in the United  Introduce new Wealth Planning Kingdom proposition for UK resident clients UK  Offer international b

  132. Slide 132: Key takeaways from UK Region

    EFG International Key takeaways from UK Region UK is a consistent performer – we can commit and deliver Refreshed management team will provide impetus for the next phase of EFG UK Well positioned in a changing market – EFG’s proposition is well suited to the strategic shift Investor Update 2019 13 M

  133. Slide 133: 2019-22 Strategic Plan: Key takeaways

    2019-22 Strategic Plan: Key takeaways Giorgio Pradelli – Chief Executive Officer Investor Update 2019 13 March 2019 Page 133

  134. Slide 134: 2019-22: Profitable growth and effective capital deployment

    EFG International 2019-22: Profitable growth and effective capital deployment Financial targets 2022  Strong, new, committed management team 4-6% NNA growth  EFG’s business model is distinctive and competitive in average1 serving clients and attracting CROs Revenue 85 bps  We have executed the in

  135. Slide 135: Contacts

    EFG International Contacts Investors Media Investor Relations Marketing & Communications Jens Brueckner Daniela Haesler Head of Investor Relations Head of Marketing & Communications Phone +41 44 226 1799 Phone +41 44 226 1804 jens.brueckner@efginternational.com daniela.haesler@efginternational.com E

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