Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — Q3 2018 Earnings Presentation
27 slides from Evli Plc Class B's earnings presentation, Oct 30, 2018
Slide 1: Interim Report January–September 2018
Interim Report January –September 2018 Evli Bank Plc 30.10.2018 Maunu Lehtimäki, CEO & Juho Mikola, CFO
Slide 2: Evli in Brief – Strong AUM Growth
Evli in Brief – Strong AUM Growth Growth p.a. ▪ Evli is a Wealth Management Bank that helps Net Assets Under Management +15.1% institutions, corporations and private persons EUR 12.3 bn increase their wealth ▪ Two client segments supported by Group Operations. Wealth Management and Investor clients
Slide 3: Two Client Segments – Diversified Client Base
Two Client Segments – Diversified Client Base Wealth Management & Investor Clients Advisory & Corporate Clients ▪ Product and service offering: ▪ Corporate Finance - Private Banking to high net worth individuals - Independent financial advisor in financial - Evli Digital to private clients and insti
Slide 4: Wealth Management at the core of Evli’s services
Wealth Management at the core of Evli’s services Evli’s business model is built around: ▪ Scalability: Growth in AUM translating into superior Operating profit, ROE and High scalability ealt ▪ Strategic positioning: ana ement Proprietary know how enables higher margins ▪ Branding: Reflects competiti
Slide 5: Growth in AUM, High scalability and Strong branding
Growth in AUM, High scalability and Strong branding AUM growth translating to superior Operating profit and ROE Proprietary know how enables higher margins eturn on Equit Branding reflects competitive advantage in different markets Finland & Sweden Internationally Comprehensive Wealth Nordic fund ma
Slide 6: Agenda
5 Agenda 1 Highlights 1-9/2018 2 Financial Figures 3 Strategy & Key Focus Areas 2018 4 Outlook for 2018 specified
Slide 7: Highlights 1-9/2018
HIGHLIGHTS 1-9/2018
Slide 8: Assets under Management at an all time high
Assets under Management at an all time high Continued strong fee income development ▪ Net commission income grew 9.1% Strategic KPI ▪ Net profit grew 25.4%. Positively affected by the non- recurring exit fees received by the associated company. Return on Equity (Target 15.0%) 26.8% (1-9/2017: 23.9%)
Slide 9: Wealth Management & Investor Clients
Wealth Management & Investor Clients Continued growth in number of clients Net revenue ▪ Net revenue increased 7.6% ▪ Operating profit (before allocations) increased 21.7% ▪ AUM grew to a new record of EUR 12.3 billion ▪ Growth in traditional and digital asset management. EUR 4.8 billion in discreti
Slide 10: Advisory & Corporate Clients
Advisory & Corporate Clients Stable development Net revenue ▪ Net revenue increased by 14.3% ▪ Operating profit (before allocations) increased 56.8% ▪ Corporate Finance - Lead Manager in Fellow Finance’s EUR 20 million IPO - Activity on the M&A market has remained strong and mandate base is good ▪ I
Slide 11: Financial Figures
FINANCIAL FIGURES FINANCIAL FIGURES
Slide 12: Financial Development 2014-Q3/2018
Financial Development 2014-Q3/2018 era n ro t Net ee in ome Net revenue and ro t mar in eturn on Equit ro or on o re urrin revenue to o era n e enses 11
Slide 13: Profit and Loss Statement
Profit and Loss Statement M€ 7-9/2018 7-9/2017 Change, % 1-9/2018 1-9/2017 Change, % 2017 2016 Net interest 0.2 0.1 78% 0.5 0.7 -27% 0.9 1.6 Net commissions 15.1 14.7 3% 49.4 45.3 9% 65.2 54.3 Net income from securities trading and FX 0.7 1.5 -52% 1.1 4.4 -75% 4.9 4.0 Other operative income 0.0 0.0
Slide 14: Balance Sheet
Balance Sheet 30.9. 30.9. 31.12. 30.9. 30.9. 31.12. ASSETS, M€ 2018 2017 2017 LIABILITIES, M€ 2018 2017 2017 Liabilities to credit institutions 138.4 127.8 383.2 17.2 17.9 31.7 Liquid assets and central banks Debt securities eligible for refinancing Liabilities to the public and 31.2 36.3 36.3 483.4
Slide 15: Key figures
Key figures 1-9/2018 1-9/2017 2017 2016 2015 Profitability key figures Return on equity (ROE), % 26.8 23.9 25.5 14.3 20.2 Strategic KPI Return on assets (ROA), % 2.1 1.8 2.0 1.4 2.2 Balance sheet key figures Return on Equity (Target 15.0%) 26.8% (1-9/2017: 23.9%) Equity-to-assets ratio, % 8.2 7.0 7.
Slide 16: Share Price Development and Trading Volume
Share Price Development and Trading Volume Share price development and trading volume** 2.12.2015–30.9.2018 reakdo n o s are oldin s b o ner rou Listed on Nasdaq Helsinki 2015 Market cap M€ 222.7* Registered shareholders 4.133* 15 Source: Nasdaq OMX Helsinki * 30.9.2018, ** Series B shares
Slide 17: Strategy & Key Focus Areas 2018
Strategy & Key Focus SIMPLY Areas UNIQUE 2018
Slide 18: Growth Strategy
Growth Strategy Megatrends Axtificial Intelligence Robotization Cyber risks Big data Digitalization Increased competition Blurring industry boundaries Empowerment of customers Globalization Consolidation Increased regulation and control Societal Aging of the population transitions Digital natives Et
Slide 19: Key Focus Areas 2018
Key Focus Areas 2018 New products Growth and services International growth with corporate bond and New private market funds global equity funds ▪ Evli Residential, Evli Healthcare and Evli Rental ▪ Product requirements: Long return history, good Income ranking, large enough size ▪ Increasing the siz
Slide 20: Key Focus Areas 2018
Key Focus Areas 2018 Customer Digitalization experience Development of digital service models Creating a superior customer experience ▪ Redesigning Evli’s online services including ▪ Dynamic measurement of customer My Evli and www.evli.com experience for Private Banking and institutional clients ▪ D
Slide 21: Outlook for 2018 Specified
OUTLOOK FOR 2018 SPECIFIED OUTLOOK 2018 UPDATED
Slide 22: 2018 Result estimated to be at the same level as in 2017
2018 Result estimated to be at the same level as in 2017 New outlook: Because of successful and stable performance at the beginning of the year, we estimate that our profit for the 2018 financial year, excluding non-recurring costs from restructuring, will be at the same level as in the previous yea
Slide 23: Contact information
Contact information Evli Bank Plc Aleksanterinkatu 19, 4th floor P.O. Box 1081 00101 Helsinki Tel. +358 9 476 690 (switchboard 8.30 am. – 5.00 pm.) Fax +358 9 661 387 www.evli.com 22
Slide 24: Disclaimer
23 Disclaimer Information set above is not intended as investment recommendation. This report is based on sources that Evli Bank Plc considers to be correct and reliable. Evli Bank Plc. nor its employees give any guarantee concerning the correctness, accuracy or completeness of any information, view
Slide 25: Appendices
i —— --Aepencisies
Slide 26: Executive Group
Executive Group Maunu Lehtimäki, born 1967 Mari Etholén, born 1973 Panu Jousimies, born 1969 Janne Lassila, born 1965 Chief Executive Officer HR and Legal Affairs Execution and Operations Institutional clients M.Sc. (Econ.) LLM M.Sc. (Econ.) M.Sc. (Econ.) Joined Evli Bank Plc in 1996 Joined Evli Ban
Slide 27: Board of Directors
Board of Directors Henrik Andersin, born 1960 Robert Ingman, born 1961 • Chairman of the Board of Directors • Member of the Board of Directors of • Member of the Board of Directors of Evli Evli Bank Plc since 2010 Bank Plc since 1985 • Chairman of the Boards of Directors of (excluding 2002-2006) Ing