Vontobel Holding AG · SIX:VONN
Vontobel — Investor Day (August 2017)
98 slides from Vontobel's investor day presentation, Aug 31, 2017
Slide 1: Investor Day 2017: Vontobel's strategy and 2020 targets
Investor Day 2017 Vontobel’s strategy and 2020 targets Group Executive Board 31 August 2017 Performance creates trust
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Investor Day 2017 31 August 2017 Cautionary statement regarding forward-looking statements and disclaimer This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factors. These projec
Slide 3: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 4: Vontobel has generated strong growth and become a global player
Investor Day 2017 31 August 2017 Vontobel has generated strong growth and become a global player with a well-diversified book of business and state-of-the-art technology … Vontobel has developed Vontobel has built a well- Vontobel invested in into a global player diversified book of business technol
Slide 5: Strengthened its position with four acquisitions in the last three years
Investor Day 2017 31 August 2017 … and strengthened its position with four acquisitions in the last three years Acquisitions in the last three years Impact on Vontobel’s business model Enhanced market access in the UK, Germany, Eastern Eastern European Europe, Italy and Italian-speaking Switzerlan
Slide 6: Global wealth continues to grow
Investor Day 2017 31 August 2017 Global wealth continues to grow – creating opportunities for wealth and asset managers that embrace major industry trends Global wealth1 (USD tn) Major trends Emergence of a multi-polar and increasingly uncertain world +6.0% Rapid transformation of business throu
Slide 7: Now is the time to launch the next phase of growth
Investor Day 2017 31 August 2017 Now is the time to launch the next phase of growth 7
Slide 8: Companies with a strong corporate purpose outperform their peers
Investor Day 2017 31 August 2017 Companies with a strong corporate purpose outperform their peers and experience higher levels of client loyalty Positive impact of strong corporate purpose Outperformance of purpose-driven companies 80% 4X or more of executives polled by Harvard is the outperformance
Slide 9: Vontobel has a strong corporate purpose and clear values
Investor Day 2017 31 August 2017 Vontobel has a strong corporate purpose and clear values to drive future growth Our corporate essence What Vontobel stands for Our values What we believe in Our purpose What drives us Ownership Driven by the power Driven by an ownership mindset, we stand for empowerm
Slide 10: The next phase of growth is based on our client-driven strategy
Investor Day 2017 31 August 2017 The next phase of growth is based on our client-driven and long-term oriented strategy Vontobel strategy Specialized in wealth and asset management Client driven With wealth management, asset management, and We are a client-led organization that strives to financial
Slide 11: Strategic priorities to implement our growth strategy
Investor Day 2017 31 August 2017 We are focusing on 5 strategic priorities to successfully implement our growth strategy Strategic priorities 1 Deliver the unique Vontobel experience 2 Empower people Strategic priorities 3 Create brand excitement among our clients 4 Boost growth and market share 5 D
Slide 12: Client experience will become a key brand differentiator
Investor Day 2017 31 August 2017 Client experience will become a key brand differentiator – Vontobel is leveraging core competencies to deliver a unique client experience Growing importance of client experience Vontobel’s core competencies “By 2020, client experience will overtake price and product
Slide 13: Attracting and retaining top talent is a strategic priority
Investor Day 2017 31 August 2017 Attracting and retaining top talent is a strategic priority – ownership and empowerment are key elements of our employer value proposition Vontobel employer value proposition Engage. Exceed. Excite. Take ownership and bring opportunities to life. Be Vontobel. 13
Slide 14: We create brand excitement among our clients
Investor Day 2017 31 August 2017 We create brand excitement among our clients through a unique and consistent Vontobel experience Unique and consistent Vontobel experience … … leads to greater brand equity Brand Awareness Visual identity One Tone of voice Attractiveness Preference Vontobel 14
Slide 15: Disciplined M&A approach to complement organic growth
Investor Day 2017 31 August 2017 Vontobel continues to pursue a disciplined M&A approach to complement organic growth Vontobel’s M&A approach Active participation in industry consolidation to accelerate profitable growth Current capital structure provides substantial resources for both bolt-on a
Slide 16: Vontobel has ambitious financial targets for 2020
Investor Day 2017 31 August 2017 Vontobel has ambitious financial targets for 2020 Growth Profitability Capital and payout CET1 >12% capital Maintain very Realize return strong capital Top-line on equity that 4 - 6% RoE >12% position to growth1 clearly exceeds provide Outgrow cost of capital securit
Slide 17: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 17
Slide 18: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 19: Growth of private wealth is set to continue around the globe
Investor Day 2017 31 August 2017 Growth of private wealth is set to continue around the globe – largest wealth pools are in North America, Europe and Asia-Pacific Expected development of HNWI private wealth1 (EUR tn) Major industry trends North America Western Europe Rapid transformation of business
Slide 20: Switzerland is an excellent hub for global wealth management
Investor Day 2017 31 August 2017 Switzerland is an excellent hub for global wealth management with private banking assets of around CHF 3,000 bn Switzerland has a strong … is the leading centre for … and has strong domestic global investment pedigree … cross-border wealth … demand for wealth managem
Slide 21: Swiss market is fragmented and undergoing structural change
Investor Day 2017 31 August 2017 Swiss market is fragmented and undergoing structural change – creating opportunities for Vontobel to accelerate growth Private banks in Switzerland Comments Number of Swiss private banks has decreased by around 30% since 2011 Structural change is expected to cont
Slide 22: Vontobel will continue to actively shape its Private Banking business
Investor Day 2017 31 August 2017 Vontobel will continue to actively shape its Private Banking business to deliver industry-leading growth Development of Vontobel Private Banking Delivering industry-leading growth Earning Further alignment of solutions to the right to grow client-specific needs and
Slide 23: Revitalization of business in Swiss home market led to market share gains
Investor Day 2017 31 August 2017 Revitalization of business in Swiss home market led to market share gains – creating a solid basis for our international ambitions Net new money1 (CHF bn) Assets under mgmt.1 (CHF bn) Net new money growth1 (%) Net new money in our home market PB Switzerland achie
Slide 24: Private Banking has potential to gain further market share
Investor Day 2017 31 August 2017 Vontobel Private Banking has considerable potential to gain further market share given its strong market positions Our unique characteristics… …lead to strong market positions A strong brand combined with a high level of client Vontobel is a leading Swiss private
Slide 25: Clients and third parties reward our Private Banking offering
Investor Day 2017 31 August 2017 Clients and third parties reward our first-class Private Banking offering Our clients are recommending us Vontobel gains external recognition Vontobel has the highest Net Promoter Score1 among Swiss Ranked as one of the competitors – a strong sign of client satisfa
Slide 26: Aspire to be the leading Swiss wealth manager
Investor Day 2017 31 August 2017 To drive our organic growth, we continuously aspire to be the leading Swiss wealth manager and to deliver optimal client service We aspire to be the leading Swiss wealth manager Attracting and retaining top talent Differentiated The best … delivered … supported by …
Slide 27: Offering based on client-specific needs
Investor Day 2017 31 August 2017 Vontobel sets itself apart by providing an offering based on client-specific needs – an important driver of organic growth Clients are traditionally segmented by the … but Vontobel’s offering is industry according to their wealth … based on client-specific needs Ultr
Slide 28: Innovation through technology across multiple platforms
Investor Day 2017 31 August 2017 Vontobel drives innovation through technology – our clients benefit from seamless access across multiple platforms Vontobel’s multi-channel offering Watch list Secure instant messaging Ideas/research Trading Tablet Markets Portfolio views and analysis Smartphone Desk
Slide 29: Mobile app launched in 2015; digital transformation by 2018
Investor Day 2017 31 August 2017 Vontobel launched its mobile app in 2015 – our ambition is to realize the full benefits of the digital transformation by 2018 Recent development of digitization at Vontobel Private Banking 2018 2017 Phase 3: Further development Phase 2: Investment in client experienc
Slide 30: Attracting and developing relationship managers
Investor Day 2017 31 August 2017 Vontobel attracts and develops relationship managers to drive its industry-leading growth today and in the future Vontobel attracts and develops top talent … … resulting in industry-leading growth Vontobel attracts and retains top talent Relationship managers (FTEs
Slide 31: Private Banking growth ambitions in all its markets
Investor Day 2017 31 August 2017 Private Banking has growth ambitions in all its markets – with very high growth ambitions (>10% NNM) in three markets Markets with very high growth ambitions 1 Switzerland 2 US/Canada Home market Global diversification offering Holistic offering Cross-border
Slide 32: Vontobel Private Banking has ambitious targets for 2020
Investor Day 2017 31 August 2017 Vontobel Private Banking has ambitious targets for 2020 2020 targets Net new money 4 – 6% Outgrow market Gross margin on assets > 65 bps Protect gross margin under management Cost/income ratio < 75% Ensure profitable growth 32
Slide 33: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 33
Slide 34: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 35: Growing global wealth and importance of EAMs
Investor Day 2017 31 August 2017 Growing global wealth and importance of EAMs for wealth booked in Switzerland will drive future demand Growing private wealth Importance of EAMs Market trends Global HNWI Private wealth Increasing demand for investment private wealth1 booked in Switzerland content
Slide 36: Improved service offering led to growth of 16% p.a.
Investor Day 2017 31 August 2017 Continued improvement of service offering and broadening of geographical coverage led to impressive growth of 16% p.a. Ongoing development of offering for EAMs… … led to impressive growth Full Strong growth in advised client service offering assets of 16% p.a. sinc
Slide 37: EAM business has a unique market position
Investor Day 2017 31 August 2017 EAM business has a unique market position and a broad range of initiatives to drive future growth What sets Vontobel apart? Digital access via EAMNet Ongoing / planned initiatives Outstanding client service Vontobel’s EAMNet gives our clients a Continuously enh
Slide 38: Expanding franchise in three attractive markets
Investor Day 2017 31 August 2017 Vontobel is expanding its franchise in three attractive markets US Switzerland Asia • Market volume: ~USD 2,000 bn, • Market volume: CHF 300 bn • Market volume: n/a of which 10% offshore and • Market growth: stable/declining • Market growth: increasing 50% with one p
Slide 39: Protecting gross margin by increasing value for clients
Investor Day 2017 31 August 2017 Vontobel protects its gross margin by increasing value for our clients Four cornerstones to increase value for our clients Generate investment ideas tailored to individual EAMs based on their specific client portfolios Investment advisory Give EAMs access to the
Slide 40: EAM business has ambitious financial targets
Investor Day 2017 31 August 2017 Vontobel’s EAM business has ambitious financial targets 2020 targets Net new money 4 – 6% Outgrow market Gross margin on assets Protect gross margin > 55 bps under management Cost/income ratio < 60% Ensure profitable growth 40
Slide 41: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 41
Slide 42: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 43: Asset management is a large and growing industry
Investor Day 2017 31 August 2017 Asset management is a large and growing industry that offers new opportunities Asset management industry (AuM in USD tn) Major industry trends Continuing debate surrounding passive vs active investing ‘Benchmark hugging’ vs high-conviction active +5.9% p.a. manag
Slide 44: Vontobel Asset Management beat the market in recent years
Investor Day 2017 31 August 2017 Vontobel Asset Management beat the market in recent years … Development of Vontobel advised client assets (CHF bn) CIO transition at Quality Long-term growth Growth boutique with Raiffeisen Acquisition of TwentyFour Acquisition of Vescore Asset Management +16% p.a. 1
Slide 45: Diversified its book of business
Investor Day 2017 31 August 2017 … and has diversified its book of business Vontobel advised client assets by boutique (%) Vontobel moved from a large exposure in Quality Growth equities… … to a well-diversified book of boutiques 100% = CHF 88.1 bn 100% = CHF 106.8 bn (end-2014) (mid-2017) 12% 9% 32
Slide 46: Covers the big future growth categories
Investor Day 2017 31 August 2017 Vontobel Asset Management covers the big future growth categories … Three major growth drivers … … and two promising options Quality 33.8 Fixed Income / Growth 7.2 Thematic 28.0 3.2 Sustainabile/ESG 32.1 Multi Asset / Advised client assets1 (CHF bn) 1 At mid-2017, in
Slide 47: Broad distribution network reaches all client segments globally
Investor Day 2017 31 August 2017 … and has continued to grow its addressable market – our broad distribution network reaches all relevant client segments globally Vontobel Asset Management’s client coverage Canada Major European US Middle South Korea Markets Japan East China Taiwan Hong Kong Thailan
Slide 48: External recognition for active, high-conviction asset management
Investor Day 2017 31 August 2017 Vontobel gains external recognition for its active and high-conviction asset management Increasing number of 5 and 4 star Over 150 awards since 2011 funds – beating the market Comments Number of 5 and 4 star funds Funds rated with 5 or 4 stars attract 37 majority o
Slide 49: Clearly positioned; attracts and retains investment talent
Investor Day 2017 31 August 2017 Vontobel Asset Management is clearly positioned and attracts and retains leading investment talent What sets Vontobel apart? Seven boutiques with strong investment leadership High-conviction alpha manager with solution capabilities Specialized investment boutique
Slide 50: Embracing digital trends and big data
Investor Day 2017 31 August 2017 Vontobel Asset Management embraces digital trends to improve client experience and generate better investment returns Digitalizing client touchpoints Using big data to improve investment decisions App accompanying clients along entire life cycle: Use of big data
Slide 51: Leveraging key market trends for further growth
Investor Day 2017 31 August 2017 Vontobel Asset Management is well positioned to leverage key market trends as basis for further growth Leverage key market trends and … to realize our growth ambitions expand our business model … for 2020 and beyond Further grow and diversify our Fixed Income franchi
Slide 52: Asset Management has ambitious financial targets
Investor Day 2017 31 August 2017 Vontobel Asset Management has ambitious financial targets 2020 targets Continue to outgrow market for Net new money 4 – 6% active asset management Protect gross margin despite Gross margin on assets > 40 bps expected change in product mix and under management general
Slide 53: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 53
Slide 54: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 55: Attractive market volumes in Europe and Asia
Investor Day 2017 31 August 2017 Attractive market volumes in Europe and Asia – digitization creates opportunities for innovative providers Exchange traded Exchange traded turnover in Europe1 (EUR bn) turnover in Asia2 (USD bn) Market trends Ongoing digitization empowers 528 structured product inv
Slide 56: Financial Products goes international and increases digital platforms
Investor Day 2017 31 August 2017 Vontobel Financial Products goes international and increases share of business with digital platforms International expansion Share of turnover (illustrative) Swiss product business International product business 2008 2016 2020 Digital platforms Share of turnover (il
Slide 57: Digitization drives expansion and service quality
Investor Day 2017 31 August 2017 Digitization helps to drive expansion to new markets and to improve service quality for our clients Growth through international expansion Outstanding service supported by digitization Asia Wealth managers Product Relationship End clients specialists managers Advisor
Slide 58: Further growth potential in Europe
Investor Day 2017 31 August 2017 Financial Products has further growth potential in Europe and is about to enter one of the world’s largest markets for leverage products … Listed products in Europe (1H17) Leverage products in Europe / Asia (1H17) Vontobel market Future Volume in 1H17 Market share Ma
Slide 59: Considering further potential markets
Investor Day 2017 31 August 2017 … and is considering further potential markets Growing footprint in Asia Potential for further growth in Europe and market entry in Hong Kong Vontobel market presence Vontobel market presence Potential new markets Potential new markets Hong Kong is one of the world
Slide 60: Leading offering, technology, business model and cost leadership
Investor Day 2017 31 August 2017 Leading offering and technology, well-balanced business model and cost leadership give Financial Products a competitive lead Leading offering / technology Well-balanced business model Cost leadership Vontobel products issued Vontobel sells volatility through Indu
Slide 61: World-leading network and digital ecosystem
Investor Day 2017 31 August 2017 Financial Products has a unique, world-leading network and serves clients through a comprehensive digital ecosystem Financial Products’ digital ecosystems mein-zertifikat.de Investment deritrade® derinet® scout app 3rd-party solutions powered by Ideas and Vontobel AP
Slide 62: Social investing platform INVESTerest
Investor Day 2017 31 August 2017 After the rollout of the investment scout app, Vontobel’s next innovation is the social investing platform INVESTerest INVESTerest – an innovative approach to market investment topics and strategies ‘Interest’ and ‘invest’ By partners 4 partners: Certificates managed
Slide 63: Aspires to become a leading global provider
Investor Day 2017 31 August 2017 Financial Products aspires to become a leading provider of investment and leverage products globally Aspiration Ongoing and planned initiatives Become leading provider of investment and leverage Protect and strengthen top position in Europe by products globally -
Slide 64: Financial Products has ambitious financial targets
Investor Day 2017 31 August 2017 Vontobel Financial Products has ambitious financial targets 2020 targets Operating income > CHF 300 mn Grow significantly Cost/income ratio < 65% Ensure profitable growth Pre-tax return on Focus on business with > 30% allocated capital1 high return on capital 1 Alloc
Slide 65: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 65
Slide 66: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 67: Corporate responsibility and sustainability are of key importance
Investor Day 2017 31 August 2017 Corporate responsibility and sustainability are of key importance today – and give companies a competitive edge The importance of corporate responsibility and sustainability for stakeholders “50% of Baby Boomers and 72% “71% of customers would be of Generation Z will
Slide 68: Committed to operating responsibly and sustainably
Investor Day 2017 31 August 2017 Vontobel is committed to operating responsibly and sustainably Corporate responsibility and sustainability … and is also demonstrated is enshrined within our organization … by our external engagements Corporate responsibility and sustainability are of key importanc
Slide 69: Sustainable investments are outgrowing the asset management market
Investor Day 2017 31 August 2017 Sustainable investments are outgrowing the asset management market – Vontobel is well positioned to achieve superior growth Definition of sustainable investing Alignment of moral Integrate ESG factors into Create a positive impact as and ethical values investment dec
Slide 70: More than CHF 11 bn of sustainable investments
Investor Day 2017 31 August 2017 Vontobel manages more than CHF 11 bn of sustainable investments – its capabilities are recognized externally We manage more than CHF 11 bn We have received numerous awards of sustainable investments for our asset management capabilities Vontobel is one of the leadi
Slide 71: Cleantech fund avoids emissions and generates excess returns
Investor Day 2017 31 August 2017 Vontobel’s Cleantech fund generates value by helping to avoid emissions and generating excess returns for our clients Vontobel’s Cleantech fund Avoided emissions Investment result (net of fees) Vontobel’s Cleantech fund invests in An investment of EUR 10,000 redu
Slide 72: ESG data integration in mtx Sustainable EM Leaders fund
Investor Day 2017 31 August 2017 The intelligent integration of ESG data improves risk management and enhances the performance of our mtx Sustainable EM Leaders fund Vontobel’s mtx Sustainable Major ESG events can lead to Emerging Markets Leaders fund material underperformance Investment result (net
Slide 73: External recognition and top rating ambition
Investor Day 2017 31 August 2017 Vontobel gains external recognition and strives for a top rating in its peer group External recognition 52% ESG disclosure score in 2016 Top 10 in DACH region (vs. peer average of 35%) ”Overall, the Vontobel Group surpasses the average performance of a selected peer
Slide 74: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 74
Slide 75: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 76: Core banking system and product factories renewed while reducing IT costs
Investor Day 2017 31 August 2017 Vontobel completely renewed its core banking system and product factories while reducing global IT costs – despite increasing volumes Development of technology at Vontobel Growing business volumes Client Number of transactions2 touchpoints 2.0 & Product digitally ena
Slide 77: Core banking system renewed; focus on digital innovation
Investor Day 2017 31 August 2017 With its core banking system renewed, Vontobel can now focus its resources on digital innovation What sets Vontobel apart? Target operating model with centralized high-quality production in Switzerland and global distribution High degree of automation and efficie
Slide 78: Technology is rapidly transforming service delivery
Investor Day 2017 31 August 2017 Technology is rapidly transforming service delivery in wealth and asset management industry Major technology trends Any Any Any Time Place Device Digital transformation Speed and penetration connectivity 78
Slide 79: State-of-the-art system landscape
Investor Day 2017 31 August 2017 State-of-the-art system landscape allows Vontobel to address trends and innovate – leading to an enhanced client experience Vontobel’s system landscape Vontobel API1 Production • Product factories • Core banking system (Avaloq) Sales and distribution • Client/chann
Slide 80: Digital transformation program with 11 major initiatives
Investor Day 2017 31 August 2017 Achieving digital excellence is key – we have bundled all activities in a group-wide program which is structured in 11 major initiatives Major initiatives of our digital transformation program 3. Mobility / 4. Process 2. Big data / collaboration digitalization advanc
Slide 81: Technology contributes to operating leverage; 2020 targets
Investor Day 2017 31 August 2017 Vontobel’s technology contributes to operating leverage – we are making significant investments in digital innovation 2020 targets Maintain global IT costs at current level Global IT costs1 CHF 85-90 mn despite digital innovation and future growth Global IT change-th
Slide 82: Conclusion & summary: best possible client experience
Investor Day 2017 31 August 2017 Conclusion & summary: Vontobel aspires to deliver the best possible client experience Vontobel’s aspiration Ongoing initiatives Drive digital innovation in businesses in order to set Improve client touch points and client journey across all Vontobel apart in the
Slide 83: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 83
Slide 84: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 85: Capital strength of the global finance industry is increasing
Investor Day 2017 31 August 2017 The capital strength of the global finance industry is increasing Increasing capitalization Major industry trends Potential additional capital requirements due to regulatory changes (e.g. Basel IV or accounting standards) Capital ratio in the Eurozone (CET1/RWA)
Slide 86: Long-term approach to capital management
Investor Day 2017 31 August 2017 Vontobel has a long-term approach to capital management and currently retains up to 30% of Group net profit to fund future acquisitions Vontobel’s guiding principles Main drivers of Vontobel’s capital management for capital management Anticipation of future capital
Slide 87: Capital-light business models and ample capital for acquisitions
Investor Day 2017 31 August 2017 Focus on capital-light business models leads to strong growth with little incremental risk – ample capital for acquisitions Focus on capital-light business models Regulatory capital (CHF mn; mid-2017; fully applied) Earnings per share Risk-weighted positions (CHF) (C
Slide 88: Illustrative purchase of a private bank with CHF 10 bn AuM
Investor Day 2017 31 August 2017 Purchase of a private bank with CHF 10 bn of assets under management could improve EPS by 10-15% Illustrative acquisition target Regulatory capital Resulting capital structure Private bank that is a good cultural Purchase consideration of Regulatory capital fit f
Slide 89: Regulatory changes expected to have minimal impact on capital ratios
Investor Day 2017 31 August 2017 Regulatory changes are expected to have minimal impact on Vontobel’s capital ratios Outlook on Basel IV Anticipated impact of IFRS 9 Changes to internal models vs standard approach: Vontobel applies the Expected loss: An expected loss will current standard approa
Slide 90: Management and employee incentives are non-dilutive
Investor Day 2017 31 August 2017 Management and employee incentives are non-dilutive for shareholders and closely aligned with their interests Structure of long-term Number of performance shares Unique incentive incentive plan increases with RoE and BIS ratio structure in market 50% of bonus is al
Slide 91: Vontobel is well prepared for all regulatory changes
Investor Day 2017 31 August 2017 Vontobel is well prepared for all regulatory changes Automatic exchange of information (AEOI) MIFID II FIDLEG Automatic exchange of information is MIFID II is designed to improve the FIDLEG is the Swiss adoption of designed to prevent cross-border tax functioni
Slide 92: Declining amortization of intangibles improves the CIR
Investor Day 2017 31 August 2017 Amortization of intangibles from former acquisitions is declining and will lead to an improvement in the CIR of around 1pp Amortization of intangibles from former acquisitions (CHF mn) Comments Amortization of intangibles includes these acquisitions: CIR -1 pp - Co
Slide 93: Covered cost of capital and delivered attractive shareholder returns
Investor Day 2017 31 August 2017 Vontobel has covered its cost of capital and delivered attractive returns to shareholders for more than a decade Return on equity and dividend Comments Attractive business with average return on equity of 12.0% since 21.6% 2003 – clearly exceeding Vontobel’s 19.2%
Slide 94: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 94
Slide 95: Programme
Investor Day 2017 31 August 2017 Programme 1.30 Welcome and strategy update Zeno Staub 2:10 Wealth Management 2:10 Private Banking Georg Schubiger 2:50 External Asset Managers Roger Studer 3:10 Asset Management Axel Schwarzer 3:50 Coffee break 4:20 Financial Products Roger Studer 5:00 Corporate Resp
Slide 96: Vontobel represents an attractive value proposition for investors
Investor Day 2017 31 August 2017 Vontobel represents an attractive value proposition for investors … with strong A growth case … financial discipline … … and potential for M&A Wealth and asset management Capital-light business model as a Potential to boost profitability industry is growing glo
Slide 97: Questions and answers
Investor Day 2017 31 August 2017 Questions and answers 97
Slide 98: Vontobel Investor Relations
Investor Day 2017 31 August 2017 Vontobel Investor Relations Gotthardstrasse 43 CH-8022 Zurich +41 58 283 73 29 vontobel.com 98