Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — Investor Presentation (September 2020)
31 slides from Cembra Money Bank's investor presentation, September 2020
Slide 1: Cembra Investor presentation September 2020
Cembra A leading player in financing solutions and services in Switzerland Investor presentation September 2020 Cembra
Slide 2: Agenda
Agenda 1. Cembra at a glance 2. H1 2020 results 3. Strategy and outlook Appendix 2 September 2020 Investor presentation Cembra
Slide 3: Cembra at a glance
Cembra at a glance Cembra at a glance A leading player in financing solutions and services in Switzerland Who we are Key figures H1 2020 Net revenues (CHF) ■ Independent consumer finance specialist exclusively operating in Switzerland 1% ■ Serving more than 1 million customers through diversified di
Slide 4: Strong market positions
Cembra at a glance Strong market positions Serving more than 1 million customers in Switzerland Personal loans: 44% market share Auto business: 22% market share Credit cards: 14% market share 30 June 2020 personal loan receivables 30 June 2020 leasing receivables (ZEK, estimates) 30 June 2020 credit
Slide 5: Long-term risk performance
Cembra at a glance 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% 1.0 1.0 1.1 1.0 1.0 1% Non-performing loans (NPL)² 0.8 0.9 0.9 0% June 08 June 09 June 12 June 20 J
Slide 6: Capital management
Cembra at a glance Capital management Disciplined use of capital, and continuous flow of dividends Capital position Dividends Tier 1 capital ratio as % CHF per share Extraordinary 4.45 dividend from 22% 20.6% excess capital 19.8% 20.0% 3.75 3.75 20% 19.7% 19.2% 19.2% 3.35 3.55 3.10 18% 2.85 17.0% 17
Slide 7: Track record
Cembra at a glance Track record Delivered on targets since the IPO IPO targets (Oct 2013) 2015 2016 2017 2018 2019 H1 2020 12.0% 37.0% n/a1 Asset growth In line with Swiss GDP growth -0.3% 0.9% Organic: 4.0% 5.4% Organic: 5.6% Profitability ROE >15% 17.7% 17.4% 16.7% 16.9% 15.7% 13.8% Capitalisation
Slide 8: Agenda
Agenda 1. Cembra at a glance 2. H1 2020 results 3. Strategy and outlook Appendix 8 September 2020 Investor presentation Cembra
Slide 9: H1 2020 performance
H1 2020 results H1 2020 performance Strong business performance during the covid-19 pandemic Highlights Net income Net financing receivables Net revenues in CHF m in CHF m in CHF m ■ Net income of CHF 74.1 million (-6%) Net Interest Income ■ Resilient net financing receivables -3% Commission and fee
Slide 10: H1 2020 products and markets
H1 2020 results H1 2020 products and markets Personal loans and auto business stable, cards affected by lower spending Personal loans Auto loans and leases Credit cards Consumer loans market, in CHF bn New cars Transaction volumes, in CHF bn, first five months Number of registrations, in 1,000 -34%
Slide 11: Card transaction volumes and card revenues
H1 2020 results Card transaction volumes and card revenues Strong volume recovery by the end of Q2 H1 growth Monthly growth (year on year) In CHF m 1 Transaction volumes Cembra Market -7% 20 10% 13% 1% 0 4% 3% -16% 2,692 2,508 -20 -10% -11% -34% -22% -40 -33% -60 -48% H1 2019 H1 2020 Jan Feb Mar Apr
Slide 12: cashgate integration
H1 2020 results cashgate integration Successfully completed, with no surprises on costs or expected benefits Consolidation of branch network (completed) Integrate businesses Commercial consolidation From 1 August 2020 on 2019 2020 Q3 Q4 Q1 Q2 Q3 Q4 B2B Single brand Business integration IT integratio
Slide 13: H1 2020: Funding
H1 2020 results H1 2020: Funding Well-balanced and diversified funding profile Funding mix Funding programmes In CHF m1 6,145 5,977 AT1 subordinated One issuance, remaining term to first 150 call of 4.4 yrs. at a rate of 2.50%4 Non-Deposits – 43% 250 250 150 1,725 Convertible bond One issuance, rema
Slide 14: H1 2020: Provision for losses
H1 2020 results H1 2020: Provision for losses Stable loss performance Provision for losses 30+ days past due/NPL In CHF m 30.2 3% 30+ days past due 23.9 Reported 2.0% 1.9% 2.0% 2.1% (1.9%¹) 21.7 21.1 22.0¹ 1.9% Adjusted for one-off¹ 2% Non-performing loans (NPL)³ 1% 0.6% 0.7% (0.5%¹) 0.4% 0.4% 0.5%
Slide 15: Agenda
Agenda 1. Cembra at a glance 2. H1 2020 results 3. Strategy and outlook Appendix 15 September 2020 Investor presentation Cembra
Slide 16: Cembra is evolving
Strategy and outlook Cembra is evolving Aspiration to further increase diversification 2010 2014 2018 20191 Aspiration 2% 1% Business mix 8% 22% as % of net revenues 23% 37% 40% 37% Personal loans 39% Auto 58% 20% Cards 69% 22% 22% Other Fee income 21% 21% 30% 31% as % of total income 43% 43% 44% 48
Slide 17: Digitisation at Cembra
Strategy and outlook Digitisation at Cembra CHF 40m investments in IT and product development 2019-2021 fully on track1 Launched Under development Digital solution for Online personal Enhancing digital Turn cards into full SME financing loan platform customer journey digital experience 100% online P
Slide 18: H2 priorities
Strategy and outlook H2 priorities Focus on execution and mitigating impact of covid-19 Priorities for H2 2020 Continue to deliver despite covid-19 ■ Regain organic revenue growth in all businesses after the downturn ■ Manage costs and align them with revenue development ■ Accelerate the digital tra
Slide 19: Outlook
Strategy and outlook Outlook Resilient business performance expected Well positioned to manage the future Outlook 2020 Strong quality ■ 100% Swiss consumer finance ■ Cembra currently expects to deliver a resilient business of assets ■ Multi-year contracts performance in 2020 with revenues being impa
Slide 20: Agenda
Agenda 1. Cembra at a glance 2. H1 2020 results 3. Strategy and outlook Appendix 20 September 2020 Investor presentation Cembra
Slide 21: Macroeconomic outlook
Appendix Macroeconomic outlook Swiss economy expected to shrink by 6.2% in 20201 GDP in Switzerland CHF interest rates Unemployment rate in Switzerland Change vs. previous period as % End-of-period 3-year swap rates as % As %, average per period 10 5.3 0.5 5 5 2.7 4.1 1.7 1.9 4 3.8 0.9 3.3 0.0 3.1 0
Slide 22: H1 2020 P&L
Appendix H1 2020 P&L In CHF m H1 2020 H1 2019 as % Comments Interest income 203.0 165.8 22 1 Higher interest income largely driven by 5 For details see slides on provisions and Interest expense -13.7 -10.7 28 cashgate acquisition in September 2019, operating expenses Net interest income 1 189.4 155.
Slide 23: H1 2020 Net revenues by source
Appendix H1 2020 Net revenues by source Interest income growing in all businesses In CHF m Revenues by source Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables +12% +41% -3% +37% -4% 249 2,915 -1% -4% 2,625 2,816 2,531 1,0
Slide 24: H1 2020 Operating expenses
Appendix H1 2020 Operating expenses In CHF m H1 2020 H1 2019 as % Comments Compensation and benefits 1 65.8 56.9 15 1 Increase is in line with the higher number of 6 Increase was mainly driven by CHF 5.9m Professional services 2 9.4 8.8 7 FTEs, mainly related to the acquisition and depreciation on i
Slide 25: H1 2020 Balance sheet
Appendix H1 2020 Balance sheet Decrease in funding in line with decline in assets In CHF m Assets 30.06.20 31.12.19 as % Comments Cash and equivalents 573 543 6 1 Decrease in net financing receivables was 2 Decrease in funding in line with decline in Net financing receivables 1 6,368 6,586 -3 due to
Slide 26: Sustainability
Appendix Sustainability Cembra included in the SXI Switzerland Sustainability 25 Index® ESG performance External recognition Governance ■ Strong and consistent governance structure1 since the IPO Included in the SXI Switzerland Sustainability 25 Index® by SIX Swiss Stock Exchange since September 202
Slide 27: History
Appendix History Foundation –“Banque Launched credit Launched saving First public IPO at SIX Launched eny Finance commerciale et agricole cards through products for retail Auto ABS Swiss FNAC cards transaction E. Uldry & Cie” in Fribourg Migros partnership and institutions in CH Exchange partnership
Slide 28: Key figures over 10 years
Appendix Key figures over 10 years US GAAP 2011 2012 IPO 2013 2014 2015 2016 2017 2018 2019 H1 2020 Net revenues (CHF m) 338 356 355 379 389 394 396 439 480 249 Net income (CHF m) 131 133 133 140 145 144 145 154 159 74 Cost/income ratio (%) 46.3 46.2 50.5 42.5 41.5 42.5 42.4 44.0 48.33 50.33 Net fin
Slide 29: The Cembra share
Appendix The Cembra share Shareholder structure: 98% free float Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 8% 2% ~12,000 registered 15% 8% private shareholders EU 10% 54% Switzerland 20% 83% US incl. CND ~1100 institutional investors Main i
Slide 30: 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 31: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences / virtual roadshows 19 February 2021 FY 2020 results 7 September 2020 Digital roadshow Frankfurt 18 March 2021 Publication of 2020 Annual Report 10 September 2020 Digital roadshow London 22 Apr
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