Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Shareholder Meeting (May 2019)
44 slides from Kempen European High Dividend Fund N.V. N's shareholder meeting presentation, May 22, 2019
Slide 1: Annual general meeting
Annual general meeting ‘s-Hertogenbosch, 22 May 2019
Slide 2: 1. Opening
VAN LANSCHOT KEMPEN
Slide 3: 2a. Report of the Supervisory Board
2a. Report of the Supervisory Board Discussion item
Slide 4: 2b. Report of the Statutory Board for 2018
2b. Report of the Statutory Board for 2018 Discussion item
Slide 5: 2018 annual results
2018 annual results
Slide 6: 2018 highlights
2018 highlights Launch Global Impact Pool Introduction strategic advice Launch new client portal Introduction of Evi Go OCTOBER B.26°8 t Ban on tobac in funds Chief Analytics Officer and Chief Digital Officer appointed DECEMBER Special capital return of €1.50 per share
Slide 7: Challenging market conditions in 2018
Challenging market conditions in 2018 Equity indices Interest rates AEX 10-year MSCI-Europe swap rate 3-month Euribor Negative market performance Current low interest rates results in AuM decline affect interest income Source: Bloomberg 7
Slide 8: Our transformation to a specialised wealth manager
Our transformation to a specialised wealth manager Client assets and AuM (€bn) Risk-weighted assets (€bn) Commission as % of operating income 81.2 (€m) 58.7% 10.5 +17.5pps +55% 14.2 -56% 41.3% 52.3 6.1 11.4 4.6 67.0 4.1 40.9 4.4 0.5 2012 2018 2012 2018 2012 2018 AuM Savings and other Private Banking
Slide 9: 2018: stable results in challenging market
2018: stable results in challenging market Net result €80.3m (2017: €94.9m) Commission +10% (€293.2m) Underlying net result €103.0m Interest -11% (€175.6m) (2017: €112.3m) Operating expenses Efficiency ratio 79.4% €396.4m (+1%) (2017: 76.2%) Client assets €81.2bn (-3%) Net inflow AuM €1.0bn AuM €67.
Slide 10: 2018 net result of €80.3m
2018 net result of €80.3m €m Total Private Banking Evi Asset Management Merchant Banking (incl. Other and Corporate Banking) 35.2 94.9 27.0 80.3 21.0 69.8 13.2 11.9 10.0 10.5 6.2 3.9 -9.6 -6.7 -9.5 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 10
Slide 11: Commission income (+10%) is key driver of net result
Commission income (+10%) is key driver of net result Key drivers of net result €m 11
Slide 12: Growth in commission due to solid AuM and strong results at Merchant Banking
Growth in commission due to solid AuM and strong results at Merchant Banking Total commission Commission by segment €m €m 12
Slide 13: Margin pressure and smaller loan portfolio affect interest income
Margin pressure and smaller loan portfolio affect interest income Interest Interest margin (12-mth moving average) €m % * The clean interest margin equals the gross interest margin adjusted for interest equalisation and interest-related derivatives amortisation 13
Slide 14: Increased focus on cost reduction
Increased focus on cost reduction Operating expenses €m • Cost-saving measures taken and planned lead to a restructuring charge of €8.3m • Taking into account possible investments and indexation, we aim for a net cost level of around €390m in 2019 14
Slide 15: Client assets at €81.2 billion
Client assets at €81.2 billion Client assets* Assets under management* € bn € bn * As of 1 January 2018, €0.2 bn in AuM has been transferred to AuA. The comparative figures for 31 December 2017 have been adjusted accordingly 15
Slide 16: Good progress on strategic investment programme since 2016
Good progress on strategic investment programme since 2016 Innovative wealth Introduced New website and online Developing new payments management apps launched Vermogenshorizon in portal for clients in 2018 platform and payments app with and further improved in 2018 2018 Fidor – roll-out planned for
Slide 17: Net release of loan loss provisions due to positive economic environment
Net release of loan loss provisions due to positive economic environment Loan portfolio (excluding provision) Additions to loan loss provision at 31/12/2018 100% = €8.7bn €m - 22 bps* - 27 bps* * Loan loss provision / Average total RWA 17
Slide 18: Strong capital position
Strong capital position Common Equity Tier 1 ratio (fully loaded) Capital return and dividend % €m 18
Slide 19: Overview of 2023 financial group targets
Overview of 2023 financial group targets Common Equity Tier 1 ratio* Dividend pay-out ratio** % % 50-70% 15-17% 20.3% 21.4% 64% 14.6% 16.3% 18.6% 37% 36% 56% 61% 2014 2015 2016 2017 2018 2023 2014 2015 2016 2017 2018 Efficiency ratio Return on Common Equity Tier 1** % % 70-72% 10-12% 79.6% 76.2% 79.
Slide 20: 2019 Events
2019 Events Sale of stake in AIO II • In December 2018, we have reached agreement with funds under management of Bencis to sell our stake in non- strategic investment AIO II (Medsen) • This transaction was completed in February and generated a book profit of over €35 million (net) in the first quart
Slide 21: Highlights trading update Q1 2019
Highlights trading update Q1 2019 • Net result significantly up on first quarter 2018 on the back of book profits from sale of stake in AIO II (Medsen) and that in VLC & Partners Results • First-quarter results excl. these book profits are in line with year-earlier figures • Positive price movements
Slide 22: 2018: stable results in challenging market
2018: stable results in challenging market Net result €80.3m (2017: €94.9m) Commission +10% (€293.2m) Underlying net result €103.0m Interest -11% (€175.6m) (2017: €112.3m) Operating expenses Efficiency ratio 79.4% €396.4m (+1%) (2017: 76.2%) Client assets €81.2bn (-3%) Net inflow AuM €1.0bn AuM €67.
Slide 23: 2c. Elaboration on strategy implementation
2c. Elaboration on strategy implementation Discussion item
Slide 24: Our wealth management strategy 2023
Our wealth management strategy 2023
Slide 25: Our purpose is the preservation and creation of wealth, in a responsible way
Our purpose is the preservation and creation of wealth, in a responsible way Wealth is about all things we value in life • Although our primary objective is to help our clients with the financial aspects of wealth, we aim to serve their broader objectives as well • As a company, we serve clients in
Slide 26: Strong performance resulting from our transformation to a specialised wealth manager
Strong performance resulting from our transformation to a specialised wealth manager Client assets and AuM (€bn) Risk-weighted assets (€bn) Commission as % of operating income 81.2 (€m) 58.7% 10.5 +17.5pps +55% 14.2 -56% 41.3% 52.3 6.1 11.4 4.6 67.0 4.1 40.9 4.4 0.5 2012 2018 2012 2018 2012 2018 AuM
Slide 27: New trends, technologies and services are drastically reshaping our operating environment
New trends, technologies and services are drastically reshaping our operating environment Societal change Societal Changing • Importance of self-reliance change client needs • Shift to doing good • Increased regulatory scrutiny Advanced technology Our operating • Digitalisation to improve client exp
Slide 28: We continue our strategy to be a leading wealth manager in our markets
We continue our strategy to be a leading wealth manager in our markets Our ambition From responsible to sustainable • A leading wealth manager in the Benelux • We are a conviction-based, active investor, region focusing on the long term • A prominent, active investment manager that • We can achieve
Slide 29: We have revisited our financial objectives and set new targets for 2023
We have revisited our financial objectives and set new targets for 2023 Targets 2023 Common Equity Tier 1 ratio 15-17% Return on CET 1 10-12% Efficiency ratio 70-72% Dividend pay-out ratio 50-70% 29
Slide 30: Next phase of our strategy has four strategic pillars
In order to realise our targets the next phase of our strategy has four strategic pillars further growth, Accelerate Advance investing in organically and digitalisation and inorganically nically advanced analytics leverage our full attract, develop and potential retain the workforce Activate Adapt 3
Slide 31: 3a. Implementation of Statutory Board remuneration policy in 2018
3a. Implementation of Statutory Board remuneration policy in 2018 Discussion item
Slide 32: 3b. Adoption of 2018 financial statement
3b. Adoption of 2018 financial statement Voting item
Slide 33: 3c. Payment of a cash dividend of €1.45 per Class A ordinary share
3c. Payment of a cash dividend of €1.45 per Class A ordinary share Voting item
Slide 34: 4a. Discharge of the members of the Statutory Board
4a. Discharge of the members of the Statutory Board from liability for their conduct of Van Lanschot Kempen’s affairs in the 2018 financial year Voting item
Slide 35: 4b. Discharge of the members of the Supervisory Board
4b. Discharge of the members of the Supervisory Board from liability for their supervision of Van Lanschot Kempen’s affairs in the 2018 financial year Voting item
Slide 36: 5. Appointment of the auditors
5. Appointment of the auditors Voting item
Slide 37: 6a. Notification of vacancies and profiles
6a. Notification of vacancies and profiles; opportunity to make a recommendation Voting item in the event of such recommendation
Slide 38: 6b. Reappointment of Willy Duron as a member of the Supervisory Board
6b. Reappointment of Willy Duron as a member of the Supervisory Board Voting item
Slide 39: 6c. Reappointment of Bernadette Langius as a member of the Supervisory Board
6c. Reappointment of Bernadette Langius as a member of the Supervisory Board Voting item
Slide 40: 7. Grant of authority to repurchase own shares
7. Grant of authority to repurchase own shares and/or depositary receipts for such shares Voting item
Slide 41: 8a. Authorisation of the Statutory Board to issue ordinary shares
8a. Authorisation of the Statutory Board to issue ordinary shares Voting item
Slide 42: 8b. Authorisation to limit or exclude pre-emption rights
8b. Authorisation of the Statutory Board to limit or exclude pre-emption rights when ordinary shares are issued Voting item
Slide 43: 9. Any other business and closure of meeting
9. Any other business and closure of meeting
Slide 44: Annual general meeting
Annual general meeting ‘s-Hertogenbosch, 22 May 2019