Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — ZKB Swiss Equities Conference 2022
38 slides from Cembra Money Bank's conference presentation, Nov 2, 2022
Slide 1: Cembra
Cembra A leading player in financing solutions and services in Switzerland Holger Laubenthal, CEO ZKB Swiss Equities Conference, 2 November 2022 Cembra
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. Business performance 3. Priorities and outlook Appendix 2 November 2022 ZKB Swiss Equities Conference 2022 Cembra
Slide 3: Cembra at a glance
Cembra at a glance Cembra at a glance A leading provider of financing solutions and services in Switzerland Over 1 million customers Decades of experience in Leading positions Excellent track record in Switzerland Swiss consumer finance in selected markets on execution Outstanding performance 15.9%
Slide 4: Strategy 2022–2026: Reimagining Cembra
Cembra at a glance Strategy 2022 – 2026 Reimagining Cembra Key messages Strategic ambition We will leverage technology to deliver the most intuitive customer solutions in consumer finance Cembra’s We will draw on the strengths of our world-class credit factory and our leadership Core DNA in selected
Slide 5: Embedded finance
Cembra at a glance Embedded finance Ongoing gradual shift to financing at purchase and post-purchase Traditional Embedded finance money lending Embedded finance presence Instrument Description Pre-purchase at purchase post-purchase Personal loans Unsecured loans Auto leasing and loans Leasing/lo
Slide 6: Acquisition of Byjuno
Cembra at a glance Acquisition of Byjuno Creating the leader in invoice payment solutions in Switzerland About Byjuno Transaction highlights CHF m (except FTE) , Byjuno: management accounts Byjuno AG is a major provider of invoice payment solutions in Cembra acquired Byjuno AG from Intrum AG (Sw
Slide 7: Capital management
Cembra at a glance Capital management Effective use of capital with continuous dividend payouts since the IPO Capital position Dividends Tier 1 capital ratio as % CHF per share Extraordinary dividend 4.45 from excess capital 22% 20.6% 3.85 19.8% 20.0% 3.75 3.75 3.75 20% 19.7% 19.2% 19.2% 18.9% 18.8%
Slide 8: Agenda
Agenda 1. Cembra at a glance 2. Business performance 3. Priorities and outlook Appendix 8 November 2022 ZKB Swiss Equities Conference 2022 Cembra
Slide 9: H1 2022 highlights
Business performance H1 2022 highlights Profitable growth – strategy implementation progressing well Overall performance further improved ■ Profitable growth in all businesses ■ Continued disciplined risk, funding and expense management ■ Timely introduction of repricing measures Strategy execution
Slide 10: H1 2022 performance
Business performance H1 2022 performance Strong business performance Highlights Net income Net financing receivables Net revenues in CHF m in CHF m in CHF m ■ Net income of CHF 90.6 million Net interest income (+15%) +15% +4% Commission and fees +6% ■ +4% net financing receivables, with 235.9 250.0
Slide 11: H1 2022 products and markets
Business performance H1 2022 products and markets Profitable 4% growth achieved in a dynamic market environment Personal loans Auto loans and leases Credit cards Buy now pay later (BNPL) Consumer loans market, in CHF bn Leasing market, in CHF bn Transaction volumes, in CHF bn eCommerce market, in CH
Slide 12: Q3 trading update
Business performance Q3 trading update Continued strong business performance in Q3 Highlights (Q3 outlook estimates, unaudited) Net financing receivables Net revenues Credit cards revenues in CHF m Q3 (3months), in CHF m Q3 (3 months) in CHF m ■ About +1% net financing receivables Net interest incom
Slide 13: Credit cards
Business performance Credit cards Transition of credit card customers to Certo! progressing as expected Strategic priorities Extended offering Reiterated guidance Retention Co-branding propositions (B2B2C) ■ Cembra expects to retain a large portion of cards issued ■ Attractive migration value propos
Slide 14: Interest rate sensitivity
Business performance Interest rate sensitivity Slightly negative repricing gap – timely introduction of repricing measures As per 30 June 2022, in CHF m 7,247 7,247 Cash 486 Non-deposits 2,493 ■ Interest expense expected to increase moderately Personal 2,338 (FY 2022E of CHF 28m–30m vs. FY 2021 of C
Slide 15: Long-term risk performance
Business performance Long-term risk performance High quality of assets – loss performance stable over the long term Loss rate NPL and delinquencies¹ Reported Adjusted for one-off 3% 30+ days past due 2% 1.1 1.0 1.0 1% Non-performing loans (NPL)² 0.8 0.9 0.9 0.7 0.5 0.5 0% Jun’08 Jun’09 Jun’12 Jun’20
Slide 16: Agenda
Agenda 1. Cembra at a glance 2. Business performance 3. Priorities and outlook Appendix 16 November 2022 ZKB Swiss Equities Conference 2022 Cembra
Slide 17: Outlook
Outlook Outlook Overall resilient business performance expected in 2022 Outlook 20221 Financial targets until 2026 Deliver on strategic milestones ■ Press ahead with credit cards transition and migration to Certo! ROE Tier 1 capital ratio Dividend per share ■ Continue repricing measures 2022–23: 13–
Slide 18: Appendix
Agenda Appendix 18 November 2022 ZKB Swiss Equities Conference 2022 Cembra
Slide 19: Macroeconomic outlook
Appendix Macroeconomic outlook Switzerland with relatively low inflation and continued low unemployment rate GDP in Switzerland Swiss vs. Eurozone CPI Inflation CHF interest rates Swiss unemployment rate Change vs. previous period as % End-of-period 3-year swap rates as % As %, average per period 8
Slide 20: Market positions
Appendix Market positions Serving more than 1 million customers in Switzerland Personal loans: 40% market share Auto business: 21% market share Credit cards: 13% market share BNPL: 10-20% market share June 2022, personal loan receivables June 2022, leasing receivables April 2022, credit cards issued
Slide 21: H1 2022 profitability by source
Appendix H1 2022 profitability by source Profitability increased by higher commissions Return on financing receivables 2.5% +0.3pp 2.8% Comments + Net revenues ■ Net interest income adversely affected by lower opening -0.1pp 5.5% balance and competitive market environment in Net interest income 5.6%
Slide 22: H1 2022 P&L
Appendix H1 2022 P&L In CHF m H1 2022 H1 2021 as % Comments Interest income 188.9 191.2 -1 1 Slightly decreasing interest income driven by 5 For details see slide on ‘Provision for losses’ Interest expense -12.3 -13.2 -7 lower opening receivables and decreasing Net interest income 1 176.7 178.0 -1 y
Slide 23: H1 2022 net revenues by source
Appendix H1 2022 net revenues by source In CHF m Net revenues by source Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +6% +4% +2% 250 2,823 2,820 2,920 +8% 236 2,303 2,292 2,338 1,025 1,030 1,110 58 73 30.06.21 31.12.2
Slide 24: H1 2022 card transaction volumes and revenues
Appendix H1 2022 card transaction volumes and revenues Strong volume recovery since March, and card fees above 2019 levels Annual growth Recovery of transaction volumes and card fees since Q1 2019 (pre-Covid) 2022 In CHF m In CHF m +18% Strong transaction volume recovery starting in March 3,281 Tran
Slide 25: H1 2022 Operating expenses
Appendix H1 2022 Operating expenses In CHF m H1 2022 H1 2021 as % Comments Compensation and benefits 1 67.1 68.5 -2 1 Decline reflecting the lower number of 6 Increase driven by leasing write-off of closed Professional services 2 8.7 7.9 11 employees branches Marketing 3 6.2 3.9 57 2 Primarily relat
Slide 26: H1 2022 Balance sheet
Appendix H1 2022 Balance sheet In CHF m Assets 30.06.22 31.12.21 as % Comments Cash and equivalents 486 545 -11 1 Higher net financing receivables mainly driven by 2 Funding increased largely in line with the Net financing receivables 1 6,434 6,207 4 the lifting of pandemic restrictions and its grow
Slide 27: H1 2022 net financing receivables
Appendix H1 2022 net financing receivables 4% growth Net financing receivables (month-end period, month by month) Comments in CHF m 6,600 +4% Increase in net financing receivables across all Cembra 6,400 channels driven by strong sales performance and the 6,200 recovery of credit card volumes 6,00
Slide 28: H1 2022 funding
Appendix H1 2022 funding Diversified funding profile Funding mix Funding programmes In CHF m1 5,849 5,700 5,888 AT1 subordinated One issuance, remaining term to first 150 150 250 150 call of 2.4 yrs. at a rate of 2.50%4 Non-Deposits – 44% 250 250 1,675 1,600 1,850 Convertible bond One issuance, rema
Slide 29: H1 2022 Provision for losses
Appendix H1 2022 Provision for losses Excellent loss performance Provision for losses 30+ days past due/NPL In CHF m 30.2 3% Reported 30+ days past due 23.9 22.0¹ 22.6² 2.0% 2.1% 2.8 Adjusted for one-off¹,² 1.9% 1.8% 8.2 2% 1.6% 15.0 19.2 1% 0.6% 0.7% 0.7% 0.6% 14.4 0.5% Non-performing loans (NPL)5
Slide 30: Sustainability
Appendix Sustainability Strong ESG performance and ratings, and commitment to further improve Sustainability performance Selected targets External recognition E ■ Reduced direct (scope 1+2) emissions intensity significantly since 2014 Reduce direct carbon emissions Low ESG risk ■ 100% of electric po
Slide 31: Capital management
Appendix Capital management Tier 1 capital ratio target of 17% Capital position Redeployment of excess capital Tier 1 capital ratio as % Additional Tier1 CET1 ratio ■ Mid-term Tier 1 capital ratio target of 17% 20% 17.7 18.9 18.8 15% 17.0% Mid-term target (since July 2019) ■ Maintain S&P A– rating t
Slide 32: Current expected credit losses (CECL)
Appendix Current expected credit losses (CECL) Changed standard for allowance for losses calculation Change from incurred to expected credit loss standard Expected financial impact Main differences Implementation of CECL as of 1 Jan 2023, based on US GAAP accounting Incurred loss concept CECL standa
Slide 33: History
Appendix History Foundation –“Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance Launched Updated commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction IKEA cards strategy E. Uldry & Cie” in Fribourg Migros partnership and in
Slide 34: Glossary of key figures
Appendix Glossary of key figures including alternative performance measures To measure its performance, Cembra uses some key figures that are not defined under US GAAP. This glossary provides definitions of alternative performance measures (APM) and other key figures Key figures (including APM) Defi
Slide 35: Key figures over 10 years
Appendix Key figures over 10 years IPO US GAAP 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 2013 Net revenues (CHF m) 355 379 389 394 396 439 480 497 487 250 Net income (CHF m) 133 140 145 144 145 154 159 153 161 91 Cost/income ratio (%) 50.5 42.5 41.5 42.5 42.4 44.0 48.3 49.8 50.6% 48.8% Net fin
Slide 36: The Cembra share
Appendix The Cembra share Shareholder structure: 100% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 7% 2% 8% ~18,000 registered 24% EU private shareholders 10% 55% Switzerland 20% 74% US incl. CND ~1,100 institutional investors Main
Slide 37: Cautionary statement regarding forward-looking statements
Appendix Cautionary statement regarding forward-looking statements This presentation by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group’s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financia
Slide 38: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences, roadshows and calls 23 February 2023 Publication 2022 full-year results 2 November 2022 ZKB Swiss Equities conference, Zurich 15 March 2023 Publication 2022 Annual Report 17 November 2022 Cred
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