Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Investor Day (May 2022)
53 slides from Kempen European High Dividend Fund N.V. N's investor day presentation, May 11, 2022
Slide 1: Capital Markets Day: Welcome
ee 11 May 2022 Capital Markets Day Welcome
Slide 2: Strategy and sustainability
11 May 2022 Capital Markets Day Strategy and sustainability Maarten Edixhoven Chair of the Management Board
Slide 3: Van Lanschot Kempen: Resilient – Sustainable – Growth
Van Lanschot Kempen: Resilient – Sustainable – Growth Entrepreneurial Our people Integrated heritage model Capital Markets Day 3
Slide 4: Continuous capital-light growth
Continuous capital-light growth Capital Markets Day 4
Slide 5: Our people: focused on client intimacy
Our people: focused on client intimacy NPS Private Clients: 41 Employee engagement score: 88% 70% of our employees is shareholder
Slide 6: Our integrated model continues under one brand
To create and preserve wealth for our clients and society in a sustainable way Our integrated model continues under one brand Private Clients Wholesale & Institutional Clients Investment Banking Clients
Slide 7: Our mid-term financial targets - A solid business model
Our mid-term financial targets - A solid business model CET1 ratio Efficiency ratio Return on CET1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle Capital Markets Day 7
Slide 8: Sustainability: net-zero wealth manager by 2050
Sustainability: net-zero wealth manager by 2050 €112.1bn AuM ~ 99% of impact €16.3bn Balance sheet ~ 1% of impact 1,654 FTE Own organisation ~ 0.1% of impact Capital Markets Day 8
Slide 9: Our team: an experienced leadership team
Our team: an experienced leadership team
Slide 10: Continued focus on growth
11 May 2022 Capital Markets Day Continued focus on growth Richard Bruens Member of the Management Board Client Management & Origination
Slide 11: Our three client segments
Our three client segments AuM per client segment (€ bn per 31/12/2021) Commission income per client segment (2021) Investment Banking Clients 15% Private Clients 45 Wholesale & 21% Institutional 68 Clients Private Wholesale & 64% Institutional Clients Clients Capital Markets Day 11
Slide 12: Strong growth over the past years
Strong growth over the past years Private Clients*: net inflow in AuM (€ bn) Private Clients: Relationship Net Promoter Score 3.8 41 36 26 23 1.4 0.6 7 0.5 0.5 0.1 2 2017 2018 2019 2020 2021 Q1 2022 2017 2018 2019 2020 2021 Q1 2022 *2017 – 2020 Private Banking segment , as of 2021 Private Clients se
Slide 13: Multiple levers for continued growth
Multiple levers for continued growth Further growth in the Netherlands Accelerated growth in Belgium Making our expertise available to all our client segments
Slide 14: Further growth in the Netherlands
Further growth in the Netherlands Dedicated focus on wealth management The right people Strong and disciplined focus on client experience and sales management Capital Markets Day 14
Slide 15: Accelerated growth in Belgium: becoming the market challenger
Accelerated growth in Belgium: becoming the market challenger Private Banking Market Belgium (€ bn per 30/6/2021) Degroof Petercam 38.2 Delen Private Bank 34.1 AuM and net inflow (€ bn) Deutsche Bank 15 0.8 ABN AMRO Private Banking 12.6 9.7 Puilaetco 11 Van Lanschot + Mercier Vanderlinden 9.3 Banque
Slide 16: Making our expertise available to all client segments
Making our expertise available to all client segments Examples Corporate Finance deals for Private Clients Sales management and client experience for Wholesale & Institutional Clients Outsourced CIO concept for professionals Capital Markets Day 16
Slide 17: Video on Real Assets
Video on Real Assets: “Bringing transparency to an opaque asset class” – also for private clients By Anneka Treon – Managing director Competence Centre Capital Markets Day 17
Slide 18: Q&A
Q&A
Slide 19: Perspective on our investment engine
Capital Markets Day Capital Markets Day Perspective on our investment engine Erik van Houwelingen Member of the Management Board Investment Strategies & Solutions
Slide 20: Strong AuM growth over the past years
Strong AuM growth over the past years AuM (€ bn) + 105% 112.1 99.0 87.7 44.6 31.3 69.0 67.0 54.6 67.8 67.6 2016 2017 2018 2019 2020 2021 All client groups Wholesale & Institutional Clients Private Clients Capital Markets Day 20
Slide 21: Our offering for Wholesale & Institutional Clients
Our offering for Wholesale & Institutional Clients Fiduciary Asset class Investment management solutions strategies Indirect Direct Organisation & Small caps beliefs (SDG) Farmland Administration, reporting & Risk attitude & ambition Sustainable equity justification Relation Private real estate Divi
Slide 22: Client expectations
Client expectations External developments Our added value Investment alpha Sustainability alpha Service alpha Innovation alpha Capital Markets Day 22
Slide 23: A journey to profitable growth
A journey to profitable growth Targeted growth in selected Additional focus on markets and solutions alternative asset classes Impact through sustainable Further investments in digitisation entrepreneurship to support future growth Capital Markets Day 23
Slide 24: Q&A
Q&A
Slide 25: Break
Break
Slide 26: Digitisation and technology
11 May 2022 Capital Markets Day Digitisation and technology Arjan Huisman COO and member of the Management Board
Slide 27: Our aim: Continuously improve our client journeys
Our aim: Continuously improve our client journeys and internal processes
Slide 28: Strong progress on digital agenda
Strong progress on digital agenda Modern digital omnichannel private banking Shift towards data-centric IT architecture client experience and tooling using modern cloud-based API tooling Swift integration of acquisitions and Full-blown Azure-based data Belgium franchise on group platform analytics s
Slide 29: 40 out of 53 teams working agile
40 out of 53 teams in Digital, Analytics and Technology working agile, with 2 to 4 week delivery cycles
Slide 30: Video on Client Center
Video on Client Center By Peter Huiskamp – Product Owner Capital Markets Day 30
Slide 31: Move towards Azure cloud
Move towards Azure cloud Simplified Employees WAN (office) VLK <2015 data centre Internet Clients Employees WAN (office) VLK 2016 – 2021 Third parties data centre Internet Employees (remote) (SaaS/ASP/BPO) Clients VLK Prisma/ Employees Azure WAN (office) data centre >2022 Internet Employees (remote)
Slide 32: Video on investment management data analytics
Video on investment management data analytics By Edouard Minoux – Product Owner/Data Scientist Capital Markets Day 32
Slide 33: Digital agenda remains key part of our strategy
Digital agenda remains key part of our strategy Client expectations Need for continuous process keep rising automation to control cost Data availability creates Cyber crime is a persistently increasing opportunities growing threat to the industry Cloud-based infrastructure Hiring top talent requires
Slide 34: Digital priorities going forward
Digital priorities going forward Client Process Housekeeping People experience optimisation fundamentals agenda – Expand digital client – Expand banker and – Regular life cycle – Finetune agile way of offering investment advisor management working tooling to free up – Upgrade investment capacity for
Slide 35: Continued investments in digitisation
Continued investments in digitisation Indicative Recurring integral IT Costs (€ m) 109 Other IT-related 23 91 costs(1) ~8 ~45 ~20 54 Increase slightly above IT OOP inflation costs 86 37 2012 Cost Savings Indexation Recurring 2021 Indexation Recurring Investment(2) Investments(2) Investments(2) Inves
Slide 36: Q&A
Q&A
Slide 37: Financial impact and outlook
Capital Markets Day Capital Markets Day Financial impact and outlook Constant Korthout CFO/CRO and member of the Management Board
Slide 38: Successful growth over past years
Successful growth over past years AuM (€ bn) Commission income (€ m) +105% +58% 112.1 385.5 243.7 54.6 2016 2021 2016 2021 Capital Markets Day 38
Slide 39: A number of successful acquisitions
A number of successful acquisitions Collaboration of a.s.r bank and 2015 2017 2019 2021 2016 2018 2020 Acquisition of MN UK Dutch wealth management activities of Capital Markets Day 39
Slide 40: Q1 2022: strong overall performance
Q1 2022: strong overall performance Results & Assets under Capital & income management loan losses Net result €25.1m (2021 Q1: €33.1m) AuM €106.3bn Strong capital position (-5% since 2021) CET 1 ratio 20.8% Underlying net result: (2021: 23.7%) €35.7m (2021 Q1: €33.7m) Commission Client assets €125.5
Slide 41: Ambitious growth in commission income
Ambitious growth in commission income Not to scale - for illustrative purposes only Income Normalised net Interest Private Clients Wholesale & Investment Operating Loan loss Other Forecast net result 2021 Institutional Banking Clients expenses provisions result 2026 Clients Capital Markets Day 41
Slide 42: Growth within all parts of the AuM mix
Growth within all parts of the AuM mix Assets under management in 2016 – 2021 (€ bn) 112 106 99 Private Clients 88 52% Private Clients – 69 67 investment strategies 55 Wholesale & Institutional Clients – investment strategies 48% Wholesale & Institutional Clients – fiduciairy management 2016 2017 20
Slide 43: Sharp increase in management fees
Sharp increase in management fees Not to scale - for illustrative purposes only Annualised recurring fees (€ m) +67% 359.5 215.3 2018 2021 2026 Capital Markets Day 43
Slide 44: Growth with a capital-light balance sheet
Growth with a capital-light balance sheet Total Risk Exposure Amount (TREA) (per 1/1/2022) €4.5bn 4% 2% 7% 5% 11% 18% 100% 26% 27% Other loans Mortgages Operational risk Treasury Co-investments Private equity Investment Other Total Banking Clients* * TREA Investment Banking Clients including operati
Slide 45: External developments may impact our results
External developments may impact our results Impact of scenarios Negative Neutral Positive Lower stock market levels Higher stock markets levels Persistently higher inflation Steeper yield curve Macroeconomic downturn - loan portfolio Capital Markets Day 45
Slide 46: Our M&A strategy: a disciplined approach
Our M&A strategy: a disciplined approach Focus on Private Banking Focus on Institutional Clients Capital Markets Day 46
Slide 47: Strong capital position
Strong capital position High CET 1 ratio 20.8% Facilitates further growth Allows for capital returns Capital Markets Day 47
Slide 48: CET1 ratio target: 15% plus a 2.5% M&A add-on
CET 1 ratio target: 15% plus a 2.5% M&A add-on for bolt-on acquisitions We intend to pay out excess capital to shareholders in 2022 and 2023, subject to regulatory approval 20.8% Excess capital 3.3% €145m 2.5% M&A add-on €110m 17.5% 15% Target Q1 2022 Target CET 1 ratio Capital Markets Day 48
Slide 49: Efficiency ratio target: 70%
Efficiency ratio target: 70% Income growth combined with continued disciplined cost management to boost efficiency 85.7% 79.6% 79.4% 76.2% 75.5% 68.9% 70% 2016 2017 2018 2019 2020 2021 Target Capital Markets Day 49
Slide 50: Return on CET1 target: 12%
Return on CET 1 target: 12% Through-the-cycle 15.7% 12.0% 10.4% 10.5% 9.8% 7.3% 4.4% 2016 2017 2018 2019 2020 2021 Target Capital Markets Day 50
Slide 51: Our mid-term financial targets – A solid business model
Our mid-term financial targets – A solid business model CET1 ratio Efficiency ratio Return on CET1 15% 70% 12% Plus M&A add-on 2.5% Through the cycle Dividend pay-out of 50–70% Capital Markets Day 51
Slide 52: Q&A
Q&A
Slide 53: Thank you
VAN LANSCHOT KEMPEN