VZ Holding AG · SIX:VZN
VZ — FY2019 Earnings Presentation
28 slides from VZ's earnings presentation, Feb 28, 2020
Slide 1: Results and outlook 2019
VZ Group VZ Holding Ltd Gotthardstrasse 6 8002 Zurich 2019 Results and outlook Phone +41 44 207 27 27 Fax +41 44 207 27 28 www.vzch.com www.vzfinanzportal.com Appendix: company overview Zurich, 28 February 2020
Slide 2: Disclaimer
Disclaimer Forward-looking statements This publication originates from VZ Holding Ltd and/or its affiliated companies (hereinafter called «VZ»). This publication and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an off
Slide 3: Agenda
Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 2
Slide 4: Summary 2019
Summary 2019 Business development Financials • Continued growth of new clients seeking advice on • Top line: +6.2% to CHF 301.7 million retirement and estate planning issues. • Operating expenses: +1.5% to CHF 159.3 million • Increased demand for platform offerings: − Personnel expenses: +5.9% yoy 5
Slide 5: Revenues: continued path of growth
Revenues: continued path of growth in CHF million1 +6.2% +9.2% 301.7 +10.3% 284.2 25.1 +4.2% 260.2 23.4 Total revenues +6.2% yoy +15.0% 235.9 22.2 57.5 226.4 • Consulting fees1 +7.3% yoy 19.3 60.9 196.9 18.5 55.5 8.7 • Banking income from commissions and trading 6.5 21.9 16.5 56.8 4.2 20.4 activitie
Slide 6: Banking income: random & structurally under pressure
Banking income: random & structurally under pressure in CHF million 60.2 60.9 56.8 57.5 55.5 5.1 5.2 48.5 5.1 7.9 6.7 • Interest business: 5.5 Higher SNB exemption threshold and higher 20.8 18.5 28.6 duration of financial assets start showing results 17.0 13.0 24.2 • Trading result: Random developme
Slide 7: Net profit: Full-year comparison
Net profit: Full-year comparison in CHF million +4.2% +13.1% +3.2% 102.3 98.2 • Operating margin (EBITDA) at 47.2% (2018: 44.8%, +19.7% –0.2% 86.8 adjusted 46.8%, revised long-term target: 47%) 84.3 84.1 − Revenues +6.2% 70.4 − Operating expenses +1.5% • Depreciation from capex in digitalisation, VZ
Slide 8: Financial Consulting: improved performance in 2H
Financial Consulting: improved performance in 2H Capacity growth Consulting revenues Net new money (NNM) in FTE (average per calendar year) in CHF million in CHF million 24.5 2’708 171 21.7 22.8 2’566 160 2’229 2’312 148 18.1 18.8 136 2’016 125 13.1 11.2 12.4 1’263 1’403 9.8 1’105 1’211 9.5 1’011 11
Slide 9: Wealth Management: AuM +19.8%
Wealth Management: AuM +19.8% in CHF million 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 yoy AuM total 16’495 18’415 21’775 23’056 27’627 +19.8% • PM mandates 10’277 11’116 13’136 13’641 16’715 +22.5% Share of total AuM 62.3% 60.4% 60.3% 59.2% 60.5% • Others1 6’218 7’299 8’639 9’415 10’912 +15.9% S
Slide 10: Platform usage among WM clients
Platform usage among WM clients CH clients only 1 platform per client 3+ platforms per client Share of WM clients who use 1 platform only, Share of WM clients who use 3+ platforms, in % of WM clients in % of WM clients Long term target: 33% 67.6% 63.9% 60.8% 58.3% 17.5% 15.0% 12.1% 9.6% 31.12.16 31.
Slide 11: Finanzportal Usage: Overview 2H 2019
Finanzportal Usage: Overview 2H 2019 Weekly active users User satisfaction User activities Net Promotor Score (NPS): 48.8 # of users over 6 months as of 31.12.19 12'000 Active users / 28'938 view only 11'000 41.5% 10'000 3rd pillar 17'529 53.7% 9'000 Insurance 9'551 policies 8'000 Payments 5'288 7'0
Slide 12: Branch offices
Branch offices Switzerland Germany #: 30 #: 4 branch office satellite new branch office in 2019 © VZ Holding Ltd 11
Slide 13: Agenda
Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 12
Slide 14: Income statements (1)
Income statements (1) in CHF million 2016 2017 2018 2019 yoy Consulting fees 18.8 21.7 22.8 24.5 +7.5% Management fees: on AuM 139.7 159.4 173.0 188.5 +9.0% other 17.8 18.9 20.4 21.9 +7.4% Banking income 56.8 55.5 60.9 57.5 –5.6% Net earned premiums 2.3 4.2 6.5 8.7 +33.8% Other operating revenues1 0
Slide 15: Income statements (2)
Income statements (2) in CHF million 2016 2017 2018 2019 yoy EBITDA 107.2 111.0 127.2 142.4 +11.9% 1 Depreciation and amortisation 6.8 8.4 10.4 17.6 +69.2% EBIT 100.4 102.6 116.8 124.8 +6.8% Net finance income 0.0 0.0 –0.1 –0.5 n.m. Profit before income tax 100.4 102.6 116.7 124.3 +6.5% 2 Income tax
Slide 16: Personnel expenses
Personnel expenses in CHF million 160 39.4% 39.7% 40.0% 39.8% 39.7% 38.3% 41.0 140 119.8 36.0 120 113.1 • +5.9% yoy 104.0 31.0 100 93.7 • Personnel development 86.8 26.0 77.6 80 31.12.17 31.12.18 31.12.19 21.0 60 16.0 FTE1 840.4 897.5 944.8 40 11.0 • 1H19: +26.7 FTE 2H19: +20.6 FTE 20 6.0 • Personne
Slide 17: Other operating expenses
Other operating expenses in CHF million 14.2% 14.6% 14.2% 16.3% 14.1% 11.6% 45.0 42.4 40.1 40.0 • Long-term other operating expenses ratio expected 8.7 35.1 between 11% and 13% going forward (revised down 35.0 33.0 33.4 8.8 3.3 from 13% to 15%, due to IFRS 16) 30.0 28.1 7.6 8.2 8.1 8.9 9.5 25.0 6.9
Slide 18: EBITDA and margin
EBITDA and margin in CHF million 180 46.4% 47.1% 45.4% 47.2% 44.8% 42.7% 46.0 160 142.4 41.0 140 127.2 36.0 120 106.6 107.2 111.0 31.0 • EBITDA +11.9% yoy (adj. for IFRS 16: +7.3%) 100 91.3 26.0 • EBITDA long-term margin target: 47% (revised up 80 21.0 from 45% due to IFRS 16) 60 16.0 • No significa
Slide 19: EBIT and margin
EBIT and margin in CHF million 180 43.8% 44.5% 46.0 160 42.6% 41.1% 41.4% 39.4% 41.0 140 124.8 36.0 120 116.8 102.6 31.0 • EBIT +6.8% yoy 100.8 100.4 100 86.3 26.0 • EBIT long-term margin target: 43% (unchanged) 80 21.0 • No significant leverage expected going forward 60 16.0 40 11.0 20 6.0 0 1.0 20
Slide 20: Balance sheets
Balance sheets in CHF million 31.12.18 31.12.19 Cash & cash equivalents 724.3 1’242.5 • Balance sheet total on the reporting date is coincidental; Short-term investments 276.5 207.5 it does not reflect the underlying Swiss prime residential mortgages 1’508.6 1’917.4 business development. CHF bonds,
Slide 21: Equity and payout ratios
Equity and payout ratios Payout ratios 2017 2018 2019 Equity ratios 31.12.17 31.12.18 31.12.19 in CHF million 3 Net profit 86.8 98.2 102.3 Total equity 459.5 512.3 549.8 in CHF million Retained earnings 52.3 59.4 62.1 Dividend total 34.5 38.8 40.2 1,2 Equity ratio4 17.0% 16.6% 13.6% Dividend per sha
Slide 22: Agenda
Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 21
Slide 23: Outlook
Outlook Business development • Increase new client inflow, consulting capacity, client conversion and platform usage. • Make VZ Finanzportal more powerful with additional functionalities, including professional e-trading and real-estate valuation features. • Germany: increase marketing efforts to en
Slide 24: Agenda
Agenda 1. Facts and figures 2. Financials 3. Outlook 4. Appendix © VZ Holding Ltd 23
Slide 25: What does VZ do?
What does VZ do? Target clients… … seek expert advice… … and solid implementation • Retirement planning (employees)/ 1 Portfolio management succession planning (entrepreneurs) − Discretionary mandates 50+ − Advisory mandates • Estate planning • Investment advice 2 Banking services • Homeowners − Cus
Slide 26: VZ Finanzportal
VZ Finanzportal © VZ Holding Ltd 25
Slide 27: Strong brand recognition
Strong brand recognition Brand associated with expertise, quality and independence Books Online/Newsletters Seminars Periodical Media coverage © VZ Holding Ltd 26
Slide 28: Long track record of organic growth and profitability
Long track record of organic growth and profitability in CHF million Operating revenues1 Net profit1 300 300 250 250 200 200 150 150 100 100 50 50 0 0 93 95 97 99 01 03 05 07 09 11 13 15 17 19 93 95 97 99 01 03 05 07 09 11 13 15 17 19 1 1993–2003 according to SWISS GAAP; 2004–2019 according to IFRS