Vontobel Holding AG · SIX:VONN
Vontobel — Investor Day (November 2022)
26 slides from Vontobel's investor day presentation, Nov 10, 2022
Slide 1: Investor Day 2022
Investor Day 2022 November 10, 2022
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
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 projections and forward-looking statem
Slide 3: Agenda
Agenda 13:30 – 14:20 Welcome, Strategy update & financials Zeno Staub, Thomas Heinzl 14:20 – 14:30 Q&A 14:30 – 14:50 Strategic priority #1: Delivering future-proof investment solutions Christel Rendu de Lint 14:50 – 15:00 Q&A 15:00 – 15:20 Strategic Priority #2: Delivering best-in-class private clie
Slide 4: Today's speakers
Today’s speakers Zeno Staub Thomas Heinzl Christel Rendu de Lint Marko Röder CEO CFO/CRO Deputy Head Investments Head Asset Management Head Investments Head Finance & Risk Georg Schubiger Felix Lenhard Caroline Knöri Head Wealth Management COO Head Human Resources Head Technology & Services 4
Slide 5: Welcome, strategy update and financials
Welcome, strategy update and financials Zeno Staub CEO Thomas Heinzl CFO
Slide 6: Strategy update
Strategy update Zeno Staub, CEO
Slide 7: Vontobel – empowering investors to build better futures
Vontobel – empowering investors to build better futures Empowering investors We empower private clients, institutional investors and financial market intermediaries to achieve their objectives. Pure-play buy-side investment firm 201 B We take the client’s perspective, master what we do, and only do
Slide 8: Strong track record of value creation and successfully navigating difficult markets
Strong track record of value creation and successfully navigating difficult markets Over two decades of unbroken profitability, through-the-cycle growth and attractive shareholder returns 244 Key drivers 220 199 201 − Strict focus on investments +8% CAGR 165 171 − Long-term orientation 136 139 − Con
Slide 9: Introducing the next two-year strategic sprint towards our 2030 Lighthouse vision
Introducing the next two-year strategic sprint towards our 2030 Lighthouse vision Cycle 2 Cycle 3 Cycle 4 Cycle 5 2021 2023 2025 2027 2029 2020 2022 2024 2026 2028 2030 2030 Lighthouse Our long-term vision “By 2030, Vontobel will be known as one of the leading and most trusted “ global investment fi
Slide 10: We have executed on the Strategic Priorities we set out for our first two-year sprint
We have executed on the Strategic Priorities we set out for our first two-year sprint Strategic Priorities 2020 – 2022 What we achieved Sample proof points − One of the strongest brands in Switzerland Swiss financial Deliver the Vontobel experience − Net Promoter Scores exceeding even our own ambiti
Slide 11: 2022 has seen unprecedented market declines
2022 has seen unprecedented market declines US Equity US Fixed income Long-running trends S&P 500, % per annum 10Y treasuries, % per annum may have changed across multiple dimensions 60% 50% 50% 40% Rapidly rising inflation 40% 30% 30% 20% Sharp central bank policy shifts 20% 10% 10% Geopolitical te
Slide 12: We serve clients in markets representing >80% of global wealth
We serve clients in markets which combined represent >80% of global wealth, the highest absolute wealth accretion, and which are most likely to remain accessible Vontobel AuM by client domicile Q3 2022, CHF 201.2 B Other Switzerland Access to ~90% of estimated 12% LATAM and MEA global wealth2 7% Foc
Slide 13: Our new priorities will also capitalize on key industry trends and market shifts
Our new priorities will also capitalize on key industry trends and market shifts Higher rates and inflation Private markets represent a large and Growing client expectations on digital Central bank main policy rate, % growing asset class and hybrid capabilities Global alternatives AuM, USD T Global
Slide 14: Strategic Priorities 2023 – 2024
Strategic Priorities 2023 – 2024 1 Delivering future proof investment solutions 2 Delivering best-in- class private client experiences 3 Accelerating our US growth 4 Scaling value creation New regimes Personalization at scale Strong regional hub Capital efficiency Review, diversify and enhance Devel
Slide 15: Our Strategic Priorities support our through-the-cycle financial targets
Our Strategic Priorities support our through-the-cycle financial targets We reaffirm our through-the-cycle financial targets Growth Profitability Capital and payout Operating income 4-6% Cost/income ratio <72% CET1 ratio >12% Net new money 4-6% Return on equity >14% Total capital ratio >16% Payout r
Slide 16: We are well-positioned to continue to generate long-term shareholder value
We are well-positioned to continue to generate long-term shareholder value Long-term oriented Supported by majority family shareholder Strict focus Buy-side, client-centric investment firm targeting a focused set of developed markets Clear avenues for growth Organic and inorganic Long-term Conservat
Slide 17: Financials
Financials Thomas Heinzl, CFO
Slide 18: 2022 has seen unprecedented market declines (recap)
2022 has seen unprecedented market declines (recap) US Equity US Fixed income Long-running trends S&P 500, % per annum 10Y treasuries, % per annum may have changed across multiple dimensions 60% 50% 50% 40% 40% Rapidly rising inflation 30% 30% 20% 20% 10% 10% Sharp central bank policy shifts 0% 0% -
Slide 19: Trading Update 9M 2022
Trading Update 9M 2022 CHF B 3Q 2022 1H 2022 2021 Trading update 9M 2022 Assets under management 201.2 208.6 243.7 − Updated quarterly reporting framework Asset Management 107.8 118.3 142.9 − Trends observed in the H1 2022 continued Wealth Management 89.0 85.7 95.8 − Year to date AuM change strongly
Slide 20: Translating our strategy (the "how")
Translating our strategy (the “how”) Long term orientated management to enable future Optimize growth business Outstanding portfolio for people quality value creation Long-term value creation (incl M&A) Strategic financial through a capital light management business model with a conservative risk pr
Slide 21: Starting point: diversified business mix, high share of recurring revenues
Starting point: diversified business mix, high share of recurring revenues and demonstrated capability to grow in developed markets AuM by client domicile AuM by mandate type WM cumulative NNM by domicile Q3 2022, % of total AuM Q3 2022, % of total AuM H1 2021 – 9M 2022, CHF 9.5 B Other Custody2 Fun
Slide 22: Conservative risk profile and continued RWA reduction
Conservative risk profile and continued RWA reduction Risk-weighted assets Credit RWA CHF M CHF M − Vontobel is not engaged in corporate banking/corporate lending (no “classic -14% -34% bank” profile) 7,448 3,334 − Reorganization in 2020 towards an even 6,617 more capital light business model 6,415
Slide 23: First measures of cost containment in place since Q1 2021
First measures of cost containment in place since Q1 2021 Total operating expense half and full year Cost containment measures put in place in Q1 2022 CHF M − Reduction of variable compensation − Freeze of headcount growth 1,068 1,000 – 1,030 − Focusing of IT budget and spend H2 522 Personnel expens
Slide 24: Further cost initiatives in progress for 2023
Further cost initiatives in progress for 2023 Total operating expense half and full year Cost containment measures put in place in Q1 2022 CHF M − Additional cost containment measures developed in Q3 2022, 1,068 1,000 – 1,030 implementation started in October − Measures comprise ~ 65 M 1. “Standard
Slide 25: Continued focus on pricing discipline
Continued focus on pricing discipline Wealth Management margins Monthly net interest income bps CHF M 75 70 66 7.3 5.9 5.9 Ø H1 2022 5.6 1H21 2H21 1H22 Ø Ø Ø Jan Feb Mar Apr May Jun Jul Aug Sep Asset Management margins 2019 2020 2021 2022 bps 42 42 38 − Continued focus on pricing discipline in WM an
Slide 26: Vontobel
Vontobel