Skarbiec Holding S.a. · GPW:SKH

Skarbiec — Q3 2016 Earnings Presentation

25 slides from Skarbiec's earnings presentation, Nov 9, 2016

  1. Slide 1: Investor presentation – Q3 2016 results

    Investor presentation – Q3 2016 results Warsaw, November 9th 2016

  2. Slide 2: Skarbiec TFI – one of Poland's most recognisable investment fund management companies

    Skarbiec TFI – one of Poland's most recognisable investment fund management (IFM) companies Assets under management of Skarbiec TFI • one of the longest standing IFM companies in Poland PLN 16.2bn • largest distribution network on the Polish market (74 external distributors and 2 own distribution ch

  3. Slide 3: Summary Q3 2016

    Summary Q3 2016 Market environment and the Group's key achievements: • Q3 2016 market environment – run-up to the US presidential election, policies of major central banks, stabilisation in Europe after the Brexit referendum • Bullish SME segment, with a relative weakness of WIG20 blue chips – preli

  4. Slide 4: Summary Q3 2016

    Summary Q3 2016 Skarbiec Group performance: Financial performance • Q3 2016 net profit at PLN 9.6m, with success fees at PLN 9.6m • Fixed fee revenue at PLN 16.2m, up 3% qoq • PLN 39.9m in cash and cash equivalents at end of Q3 2016 Assets under management • Net inflows to retail funds totalled PLN

  5. Slide 5: Skarbiec TFI and the market

    s&s fundusze SKARBIEC inwestycyjne Skarbiec TFI and the market

  6. Slide 6: Market situation

    Market situation Net subscriptions/redemptions in IFM companies in Poland Net subscriptions/redemptions in IFM companies without (retail funds, PLNbn) own distribution networks in Poland (retail funds, PLNbn) 0.66 2.33 0.13 0.21 0.17 0.37 0.93 0.98 1.29 0.90 0.45 0.39 0.44 0.44 0.13 0.30 -1.00 -1.15

  7. Slide 7: Skarbiec TFI – subscriptions and redemptions in retail funds

    Skarbiec TFI – subscriptions and redemptions in retail funds Net subscriptions/redemptions (PLNm) Net subscriptions/redemptions in fund classes (incl. conversions) quarterly data for Q3 2015–Q3 2016 (PLNm) 80 81 40 51 60 8 20 23 -14 -34 -15-22 -9 -70 -56 -48 -29-60 -59 -48 -90 -81 -120 -197 equity,

  8. Slide 8: Retail fund assets – diversification

    Retail fund assets – diversification Skarbiec TFI – retail fund assets Skarbiec TFI – retail fund assets (PLNbn, at end of quarter) (PLNbn, at end of quarter) 3.27 3.09 3.12 3.00 2.91 1.23 38% 1.16 1.32 41% 1.03 1.03 35% 1.17 37% 1.28 1.27 1.26 43% 1.32 42% 2.04 62% 1.93 1.97 1.87 65% 1.95 63% 1.53

  9. Slide 9: Skarbiec TFI full product range − funds for every macroeconomic scenario and market trend

    Skarbiec TFI full product range − funds for every macroeconomic scenario and market trend Poland Europe World Total Equity and mixed 723 328 390 1,441 3 6 2 3 3 14 Debt 635 33 415 1,083 2 4 1 1 6 market Money 344 344 1 Alternative 251 251 7 Total 1,953 361 805 3,119 Source: Company, IZFiA. PLN x m A

  10. Slide 10: Fund performance

    Fund performance % of AuM in open-end funds with rates of return Skarbiec TFI – rates of return on funds above benchmark for a given period for the last 12 months equity, mixed and alternative funds equity, mixed and alternative funds (3Y rate of return) Q1 (Q3 99% 13/14 Market Opportunities 15.2% n

  11. Slide 11: Financial performance

    s&s fundusze SKARBIEC inwestycyjne Financial performance

  12. Slide 12: Summary of performance

    Summary of performance Skarbiec Group’s financial performance (PLN '000) Q3 2016 Q2 2016 change q/q Q3 2015 change y/y Q1-Q3 2016 total revenue, including: 27,016 18,083 +49% 20,751 +30% 62,460 – fixed management fees 16,227 15,787 +3% 19,050 -15% 47,450 – success fees 9,620 1,399 - 11,097 – other i

  13. Slide 13: Fixed management fee

    Fixed management fee Fund management – fixed fee (PLNm) • Fixed fee amount depends on AuM 19.1 in fund classes 17.7 1.0 15.8 16.2 0.9 15.4 • Average gross management fee rate changed on shifts in retail 0.9 0.9 1.2 funds' AuM structure – increase in assets of absolute return +1.3% 12.9 12.0 funds 10

  14. Slide 14: Success fee

    success fee Nominal success fee – annual Nominal success fee – quarterly 20 12 9.6 low-margin – outside Poland 10 0.9 12.5 11.8 low-margin – Poland 8 11.1 2.3 1.8 high-margin – outside Poland 3.6 10 0.1 0.9 6 0.4 1.5 high-margin – Poland 6.0 5.2 3.6 other* 4 1.4 5.1 2 4.0 4.2 5.1 0.3 0.1 0.8 0.0 0.1

  15. Slide 15: Group's operating expenses

    Group's operating expenses Group's operating expenses Payroll costs (PLNm) (PLNm) 16.7 15.0 14.1 14.3 15.1 1.4 1.0 1.1 3.9 3.8 1.9 1.0 0.4 3.1 7.6 7.1 6.2 6.1 0.5 0.1 2.5 2.3 0.3 1.5 6.0 0.2 0.1 0.4 1.8 1.5 1.9 2.8 0.1 1.1 2.8 2.4 2.4 2.3 2.2 5.8 5.4 5.0 5.2 5.0 -0.2 Q3 2015 Q4 2015 Q1 2016 Q2 2016

  16. Slide 16: Executive summary

    Executive summary Outlook for the coming quarters: • consistent trends among fund clients – looking for rates of return alternative to deposits (3-6%) • In Q4 2016, Skarbiec focuses on: • securing assets for absolute return funds, mainly Skarbiec Multiasset FIZ and Skarbiec Absolute Return Globalnyc

  17. Slide 17: Contact details − IR

    Contact details − IR Tomasz Cierkowski Disclaimer Investor Relations This analysis has been prepared for information purposes only, and is not a solicitation of an offer to buy or sell any financial CC Group Sp. z o.o. instruments. This material is not an advertisement, an offer or an invitation to

  18. Slide 18: Appendices

    s&s fundusze SKARBIEC inwestycyjne Appendices

  19. Slide 19: Dividend of Skarbiec Holding S.A. − effect of shifting the financial year

    Dividend of Skarbiec Holding S.A. − effect of shifting the financial year Skarbiec TFI – financial year = calendar year 12’14 03’15 06’15 09’15 12’15 03’16 06’16 09’16 12’16 annual report and General Meeting (Q2) dividend distribution (Q2) (dividends contribute to separate profit of Skarbiec Holding

  20. Slide 20: Retail fund performance 1/2

    Retail fund performance 1/2 rate of return in the period high-margin (as at September 30th 2016) class fund funds 1Q 1Y 3Y  Skarbiec Akcja 10.2% -2.6% -11.8%  Skarbiec TOP Funduszy Akcji 10.6% 2.4% -3.8%  Skarbiec Małych i Średnich Spółek 15.2% 12.4% 10.1%  Skarbiec Spółek Wzrostowych 12.8% 11.5

  21. Slide 21: Retail fund performance 2/2

    Retail fund performance 2/2 rate of return in the period high-margin (as at September 30th 2016) class fund funds 1Q 1Y 3Y Skarbiec Obligacja 0.6% 2.1% 12.1% Skarbiec Depozytowy 0.6% 2.1% 9.8% Skarbiec Obligacyjny FIZ 2.7% 5.1% 18.6% no fixed fee Skarbiec Portfela Dłużnego FIZ 0.5% - - Skarbiec Obli

  22. Slide 22: Adjustment of results

    Adjustment of results (PLNm) 2013 2014 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Operating profit (reported) 35.4 23.1 25.3 4.1 3.3 3.9 11.8 costs of incentive programme, including: 1.2 3.4 0.6 0.2 -0.2 - - programme ended in 2014 1.2 3.1 - - - - - 2015−2018 programme - 0.2 0.6 0.2 -0.2 - - IPO costs (in

  23. Slide 23: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income PLN '000 2013 2014 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Revenue 101,349 91,056 92,681 19,193 17,361 18,083 27,016 Amortisation/depreciation (510) (573) (617) (159) (107) (101) (97) Distribution costs (32,445) (34,273) (36,397) (8,131) (7,945) (7,185) (7

  24. Slide 24: Consolidated statement of financial position

    Consolidated statement of financial position PLN '000 Dec 31 2013 Dec 31 2014 Dec 31 2015 Jun 30 2016 Sep 30 2016 ASSETS 104,882 95,750 91,931 97,900 110,536 Non-current assets 55,817 58,233 58,860 57,645 57,728 Property, plant and equipment 1,351 1,857 1,469 1,311 1,203 Intangible assets 51,969 51,

  25. Slide 25: Consolidated statement of cash flows

    Consolidated statement of cash flows PLN '000 2013 2014 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Cash flows from operating activities Profit before tax 36,141 23,574 25,643 4,171 3,637 4,214 11,962 Adjustments: (4,639) (1,821) (4,626) (2,585) (47) (1,843) (7,673) Costs of incentive programme 1,190 3,360

Skarbiec Holding — Q3 2016 Earnings Presentation on 6ix