Efg International Ag · SIX:EFGN
Efg International — FY2021 Earnings Presentation
49 slides from Efg International's earnings presentation, Feb 23, 2022
Slide 1: Full-year 2021 results presentation
ErG Full-year 2021 results presentation FG | 23 February 2022 - Zurich
Slide 2: Important Legal Disclaimer
Important Legal Disclaimer This document has been prepared by EFG International AG (“EFG") solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any
Slide 3: Key highlights
Key highlights Giorgio Pradelli Chief Executive Officer EFG International | Full-year 2021 results 23 February 2022 ct Page 3
Slide 4: 2021: step change in terms of performance and profitability
| 2021: step change in terms of performance and profitability ErG at Strong growth momentum New level of profitability * Consistent execution and continued transformation EFG International | Full-year 2021 results 23 February 2022 Page 4
Slide 5: Continued strong growth momentum and consistent execution
Continued strong growth momentum and consistent execution EFG 8.8» Net new assets in CHF IFRS net profit, in CHF EFG International | Full-year 2021 results Strong asset inflows + Consistent strong net new asset growth for eleven consecutive quarters - Assets under Management up 8.3% to CHF 172 billi
Slide 6: Constant transformation supporting our 2022 strategic plan
Constant transformation supporting our 2022 strategic plan ErG lk |_| Content @ Global reach ©: Simplicity EFG International | Full-year 2021 results Content and expertise delivered globally - Investment-led solutions as cornerstones; focus on Future Leaders framework and sustainable investments off
Slide 7: Financial performance
Financial performance Dimitris Politis Chief Financial Officer EFG International | Full-year 2021 results 23 February 2022 ct Page7
Slide 8: Presentation of financial performance
Presentation of financial performance ErG Presentation of full-year 2021 financial results + The reconciliation of underlying net profit to IFRS results is included on slide 41: The only items excluded from underlying performance are the “contribution of the life insurance portfolios”, the “legacy l
Slide 9: Significant increasing profitability through delivery of strong operational performance
Significant increasing profitability through delivery of strong operational performance ErG Business development Profitabilty Cost evolution Legacy issues Capital position & management EFG International | Full-year 2021 NNA of CHF 8.8 bn, strongest NNA inflow in a decade, annual growth rate of 5.5%
Slide 10: Financials Summary
Financials Summary Revenue-generating AuM, CHF bn Net new assets, CHF bn Net new asset growth Operating income, CHF mn Revenue margin, in bps Operating expense, CHF mn Cost-income ratio Operating profit, CHF mn IFRS net profit, CHF mn Return on shareholders’ equity Return on tangible equity Underlyi
Slide 11: Financials Summary
Financials Summary Revenue-generating AuM, CHF bn Net new assets, CHF bn Net new asset growth Operating income, CHF mn Revenue margin, in bps Operating expense, CHF mn Cost-income ratio Operating profit, CHF mn IFRS net profit, CHF mn Return on shareholders’ equity Return on tangible equity Underlyi
Slide 12: Consistent business growth and significant increase in profitability
Consistent business growth and : oo : . . ope ym significant increase in profitability ErG Consistent business growth Underlying net profit up 47% vs. 2020 NNA growth annualised Evolution of underlying profit (in %) (in CHF mn) 5.5 5.5 . ; 114.4 4.0 2019 2020 2021 2019 2020 2021 Underlying CIR impro
Slide 13: Profitability increased to a significantly higher level
Profitability increased to a significantly higher level ErG Active management of the P&L and Underlying operating profit up 25% vs. 2020 generation of significant operating leverage Underlying operating profit evolution (in CHF mn) + Revenue growth of 6.3% despite decline in NII ~ Continued strong i
Slide 14: IFRS net profit increased by 78% year on year
IFRS net profit increased by 78% year on year ErG Underlying profitability vs. IFRS net profit Reconciliation of underlying net profit (in CHF mn) 51.6 Underlying Life Legacy legal Intangible IFRS net. IFRS net. net profit insurance costs & amortisation profit 2021 profit 2020 2021 provisions EFG In
Slide 15: Strongest net new asset inflow in a decade
Strongest net new asset inflow in a decade NNA growth at 5.5% Revenue-generating AuM evolution (in CHF bn) aa 87 0.0 . fy — | (4.3) Dec 20 NNA Market FX Other* Dec21 Adjusted for sale of A&G * Divestment of Oudart (Paris, France) and Personal & Corporate banking business (Ticino, Switzerland) and re
Slide 16: Continued improvement of CRO efficiency
Continued improvement of CRO efficiency ErG CRO hiring momentum Number of CROs signed 815 Shaw and Partners 2018 2019 2020 2021 * 440 CROS excl. A&G CRO additions Number of new CROs 7h 3 approved _ 2018 2019 2020 2021 EFG International | Full-year 2021 results CROs approved / Continuous CRO performa
Slide 17: Balanced and diversified business development
Balanced and diversified business development ErG Business development by region Revenue-generatingAuMs as % of RoAuM* NNA Growth NNA (excl. loans) Growth CHF 172.0 bn total AuM (in bps) CHF 8.8 bn (in %) CHF 8.3 bn (in %) vo es & Italy Continental Middle East Latin America < EFcaM Funds [Ria EFG In
Slide 18: Positive momentum in mandate penetration
Positive momentum in mandate penetration ErG Evolution of mandate penetration Evolution of advisory, discretionary mandates & funds (as % of AuM, excl. loans) 2019 2020 2021 2022 target Source: Asset Risk Consultants. Refers to GBP Conservative, Growth and Balanced EFG International | Full-year 2021
Slide 19: Top-quartile performance across New Capital fund range
Top-quartile performance across New Capital fund range 80% of New Capital funds have 4 or 5 star Morningstar ratings even as fund range continues to increases in size 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 01.01.2019 01.07.2019 01.01.2020 19 v7 5 © 5 01.07.2020 01.
Slide 20: Revenue quality further improved
Revenue quality further improved Underlying operating income up 6.3% year on year Underlying operating income (in CHF mn) vs. 2020 +6% 1,116.9 *10% 170.3 -15% +15% 2020 2021 2021 excl. A&G © Underlying net other income © Average revenue-generating AuM (in CHF bn) IH Underlying net interest income ©
Slide 21: Maintaining a disciplined approach to costs
Maintaining a disciplined approach to costs ErG Underlying cost-income ratio at 79.9% eee operating expenses (in CHF mn) ms () vs. 2020 924.7 +2.6% 890.5 43.2% 42.4% 2020 2021 2021 excl. A&G 1 Underlying other operating expenses fl Underlying personnel expenses * Excluding FTEs in notice period or i
Slide 22: Footprint rationalisation completed
Footprint rationalisation completed Overview of core private banking booking centers and Shaw and Partners HK :Luxembourg Hen Monaco’ Switzerland Miam| caribbean Overall project scope: Reduction of 8 business units / locations Reduction in revenues: approx. CHF 90 mn Reduction in costs: approx. CHF
Slide 23: Balance sheet
Balance sheet Total assets: CHF 42.1 bn * including financial liabilities at amortised cost (structured products funding) EFG International | Full-year 2021 results Total liabilities & equity: CHF 42.1 bn financial liabiliti ubordinated li Total Equity ErG Strong and highly liquid balance sheet Loan
Slide 24: Strong regulatory capital position
Strong regulatory capital position Regulatory capital position Total Capital Ratios* (in %) Active management of RWAs Breakdown of RWAs* (in CHF bn) 9.9 2.0 31 Dec 2020 31 Dec 2021 mCommon Equity mAdditional Tier mTier 2 31 Dec 2020 31 Dec 2021 mMarket / Settlement / Non-counterparty related Operati
Slide 25: Capital generation - Swiss GAAP
Capital generation —- Swiss GAAP ErG Evolution of CET1 Capital Ratio* (in %) Underlying net capital generation Total Capital Ratio* Total Capital 199 WV 04 Tier 1 ratio* Ratio’ ——— CET Capital (1.3) (0.4) CET Capital Ratio* Ratio* Guidance for minimum CET1 ratio (14%) Regulatory minimum CET1 ratio (
Slide 26: Capital generation - IFRS
Capital generation — IFRS EFG to switch to IFRS capital ratios in 2022 Substantial CET1 capital under IFRS Evolution of CET1 Capital ratio* (in %) Underlying net capital generation Total Capital Ratio* Total Capital Total Capital Tier 1 Ratio* Ratio* Ratio’ V3 1.6 CET! Capital iz CET1 Capital CET Ca
Slide 27: Executing the 2022 strategic plan as presented
Executing the 2022 strategic plan AS Presented on ErFG 13 March 2079 2019-2020 2021-2022 ro) . . ic simulation 6 Operational efficienc static simulatioy 2 E ti a . v P y S Tailwinds from interest rates Ga xecuting remaining synergies ojeital sotut Wa Incremental Ni management igital solutions (in CH
Slide 28: Outlook and strategic priorities
ErG Outlook and strategic priorities Giorgio Pradelli Chief Executive Officer FG International | Full-year 2021 results 23 February 2022 Page 28
Slide 29: Consistent execution of 2019-22 strategic plan
Consistent execution of 2019-22 strategic plan ErG 2022 and beyond Unlocking full potentia MAAR New level of profitability 2020] Demonstrating resilience AuM CHF 154bn 2019] Seeding for growth AuM CHF 131 bn 2016-2018} Acquisition / integration of BSI AuM CHF 84 bn EFG International | Full-year 2021
Slide 30: Strong momentum and consistent execution
Strong momentum and consistent execution ErG Net new assets In CHF billion 8.8 2017 2018 2019 2020 2021 Revenue-generating Assets under Management In CHF billion 2017 2018 2019 2020 2021 EFG International | Full-year 2021 results IFRS net profit In CHF million a i | 2017 2018 2019 2020 2021 Underlyi
Slide 31: Supportive macro trends, volatile markets and geopolitical tensions
Supportive macro trends, volatile markets and geopolitical tensions ErG Markets OUT Our top 10 themes for the year ahead + Global growth above trend + Rising interest rates + Increased volatility but supportive capital markets + Continued wealth accumulation globally Macro environment + Digitalisati
Slide 32: Balancing economic, environmental, and social interests
Balancing economic, environmental, and social interests to meet the expectations of the Next Generation ErG We drive change by Guiding the allocation of our clients’ assets to transformative technologies and companies that support sustainable development and innovation Being an emf communiti protect
Slide 33: Well positioned for profitable and sustainable growth
Well positioned for profitable and sustainable growth ErG O lama Clients - Freedom to Clients first + Superior service and first-class investment solutions delivered by entrepreneurial CROs + Distinctive global business platform, respected brand + Improved competitive market position; continued stra
Slide 34: Profitable and sustainable growth: unlocking the full potential in 2022 and beyond
Profitable and sustainable growth: Unlocking the full potential in 2022 and beyond ErG at Strong track record over the past three years and fundamental transformation of business Reached new level of profitability in 2021 On track to deliver on 2022 strategic plan EFG in position of strength for nex
Slide 35: G International | Full-year 2021 resu February 2022 Page 35
G International | Full-year 2021 resu 23 February 2022 Page 35
Slide 36: Appendix
Appendix FG International | Full-year 2021 results 23 February 2022 Page 36
Slide 37: Income statement (IFRS)
Income statement (IFRS) emi” a Pe | Net interest income 2593 2999 Net banking fee & commission income 7565 6557 Net other income 2388 175.0 Operating income 1,254.6 1,130.6 Personnel expenses (691.0) (675.0) Other operating expenses (194.6) (199.5) Amortisation of tangible fixed assets & software (7
Slide 38: Income statement (IFRS)
Income statement (IFRS) ErG emi” ee Net interest income Net banking fee & commission income Net other income Operating income Personnel expenses Other operating expenses Amortisation of tangible fixed assets & software Amortisation of acquisition related intangibles Total operating expenses Operatin
Slide 39: Underlying income statement
Underlying income statement ErG oni Net interest income 2575 302.8 Net banking fee & commission income 7565 6557 Net other income m4 156.1 Personnel expenses (691.0) (675.0) Other operating expenses (257.6) (249.7) Provisions (30.3) (30.0) Loss allowances expense 33 (6.4) Income tax expense (33.6) (
Slide 40: Underlying income statement
Underlying income statement ErG oni ~ * Net interest income 1665 1363 1274 1304 Net banking fee & commission income 3202 3355 3744 382.4 Net other income 88.0 Personnel expenses (362.3) (312.7) (345.8) (345.2) Other operating expenses (122.9) (126.8) (120.0) (137.6) Provisions (157) (14.3) (11.2) (1
Slide 41: Reconciliation of Underlying results to IFRS results 2021
Reconcilation of Underlying results to IFRS results 2021 ErG Acquisition related | Exceptional legal costs & (in CHF million) Underlying results 2021 Ineacie leer tiestion Faevicions IFRS results 2021 (0.8) Net interest income Net banking fee & commission income Net other income Operating income Per
Slide 42: Underlying income statement - excl. A&G
Underlying income statement — excl. A&G ErG (in CHF million) EFG - 2021 A&G standalone - 2021 EFG - 2021 excl. A&G Net interest income 2575 2532 Net banking fee & commission income 7565 63.1 693.4 Net other income m4 1703 Personnel expenses (691.0) (43.3) (647.7) Other operating expenses (257.6) (14
Slide 43: Balance sheet (IFRS)
Balance sheet (IFRS) ErG Cash and balances with central banks 8,643, 9,802 Treasury bills and other eligible bills 1,027 1453 Due from other banks 3,097 2,562 Derivative financial instruments 1455 om Financial assets at fair value through P&L 2,132 1,807 Investment securities 4,953 5,888 Loans and a
Slide 44: Breakdown of AuM
Breakdown of AuM EFG 31Dec 2021 ie — (hertn) Cash & deposits 35.4 Bonds 22% 20% 337, Equities 32% 36% 61.9 Structured products 3% 3% 5.6 Loans 12% 1% 19.6 Hedge funds 2% 2% 33 Other 7% 7% 125 Total 100% 100% 172.0 74.6 EUR 26% 24% 40.5 GBP 10% 10% W7 AUD 9% 10% 16.9 CHF 7% 4% 7 Other 6% 9% 15.2 Tota
Slide 45: Segmental analysis 2021
Segmental analysis 2021 Performance summary Swhzetand | Thope & asiaracitc | "gweattn | markets | corporate | elimination | Tota Middle East Solutions | Treasury Segment revenues 2987 208.4 795 145.4 1789 81.0 - 1,254.6 Segment expenses. (246.0) (1903) (88.3) (131.0) (1447) (90.9) (41.8) (23.2) 2 (9
Slide 46: Segmental analysis 2020
Segmental analysis 2020 Performance summary sie ete asiaracitc | "aweattn | markets | corporate | elimination | Total Solutions | Treasury Segment revenues 284.6 1822 817 1404 1614 1308 1625 (127) - 1130.6 Segment expenses, (245.4) (182.6) (78.8) (121.1) (140.0) (99.0) (53.5) (18.8) ° (939.1) Pre-pr
Slide 47: Update on Life Insurance Exposures
Update on Life Insurance Exposures Life insurance related portfolios Legacy exposures acquired more than 10 years ago + Outright portfolio carried at fair value (marked-to-model, Level 3) for IFRS accounts - For regulatory capital purposes (Swiss GAAP), this portfolio is carried as a Held-to-Maturit
Slide 48: Update on Life Insurance Exposures (II)
Update on Life Insurance Exposures (II) FG Outright portfolio Direct holding of life insurance policies for 181 insureds (2020: 219) of an average age of 92.7 years Death benefit: CHF 1,183.4 mn + Carrying value: CHF 642.7 mn FY 2021 premium: CHF 138.1 mn Life expectancy: 3.9 years Non-underlying +
Slide 49: Contacts
Contacts EFG Investor Relations Marketing & Communications Jens Brueckner Daniela Haesler Head of Investor Relations Head of Marketing & Communications Phone +41 44 226 1799 Phone +41 44 226 1804 jens.brueckner@efginternational.com daniela.haesler@efginternational.com EFG International AG Bleicherwe