Slide 1: Results Presentation First Half 2013
Leonteq AG RESULTs PRESENTATION FIRST HALF 2013 Zurich, 23 July 2013
Slide 2: Legal disclaimer
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 legal disclaimer This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, documents and information used therein or distributed in the context of this
Slide 3: Agenda
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 agenda • Main achievements H1 2013 at a glance • Financial results H1 2013 • Market update • Business update • Outlook & summary • Appendix 23 July 2013 | 3
Slide 4: Main achievements H1 2013 at a glance
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 MAIN ACHIEVEMENTS H1 2013 AT A GLANCE 23 July 2013 | 4
Slide 5: Main achievements H1 2013 at a glance
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 MAIN ACHIEVEMENTS H1 2013 AT A GLANCE • Strong profitability growth (group net profit up 124% to CHF 21.5 m vs. H1 2012) driven by …significant increase in operating income (up 29% to CHF 81.9 m vs. H1 2012) and …improved cost-income ratio (down 14PP
Slide 6: Financial results H1 2013
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 FINANCIAL RESULTS H1 2013 23 July 2013 | 6
Slide 7: Key performance indicators
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 key performance indicators LEONTEQ CONTINUES STRONG PERFORMANCE Key performance indicators H1 2013 H2 2012 H1 2012 Change to H1 12 Number of clients (1), (2) 515 493 406 27% Whereof number of clients entering into primary transactions (2) 389 369 317
Slide 8: Group net profit
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 group net profit STRONG GROWTH IN PROFIT WITH STABLE MARGINS Number of clients Turnover (in CHFbn) H1 2013 389 7.8 275 (71%) Growth: 34% 6.3 515 Growth: 27% 5.8 317 222 (70%) 0 3 6 9 H1 2012 406 H1 2013 H2 2012 H1 2012 0 200 400 600 Primary c
Slide 9: Income statement
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 INCOME STATEMENT REFLECTS STRONG INCOME GROWTH & COST CONTAINMENT CHFm H1 2013 H2 2012 H1 2012 Change to H1 12 • Increased client activity/turnover supported by positive environ- Turnover (CHFbn) 7.8 6.3 5.8 34% ment for yield enhancement Net fee inc
Slide 10: Fee income generation
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 FEE INCOME GENERATION HIGH CONTRIBUTION FROM YIELD ENHANCEMENT & NON-CH DOMICILE Fee income* By domicile of 60 • Yield enhancement remains intermediary 50 most popular product type in % because of favorable market 40 environment 30 51 49 52 48 51 49
Slide 11: Large ticket transactions
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 large ticket transactions DECREASED NUMBER & CONTRIBUTION TO OPERATING INCOME Number of large ticket transactions(1) Operating income on large ticket transactions (in CHFm) • In line with management expect- ations operating income on large ticket tra
Slide 12: Operating leverage
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 operating leverage PLATFORM SCALABILITY REDUCES COST PER ISSUED PRODUCT Total operating expenses per issued product (CHF)(1) Development of costs and number of issued products, Structured Solutions division H1 2013 50 5'700 • Operating expense per is
Slide 13: Operating expenses
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 OPERATING EXPENSES CONTINUED FOCUS ON COST CONTAINMENT Development of operating expenses (in CHFm) • Other operating expenses H1 2013 included - special charges of CHF 0.9 m for the build-up of Notenstein 4.0 17.3 35.9 as a white-labeling partner as
Slide 14: Segment results
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 segment results POSITIVE RESULTS IN BOTH BUSINESS DIVISIONS (in CHFm) Structured Solutions Structured Asset Management Corporate Center & Pension Solutions H1 2013 H2 2012 H1 2012 Change H1 2013 H2 2012 H1 2012 Change H1 2013 H2 2012 H1 2012 Change t
Slide 15: Regional development – Structured Solutions
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 REGIONAL DEVELOPMENT – STRUCTURED SOLUTIONS ASIA BECAME PROFITABLE IN H1 2013 (in CHFm) core regions* european union asia H1 2013 H2 2012 H1 2012 Change H1 2013 H2 2012 H1 2012 Change H1 2013 H2 2012 H1 2012 Change to H1 12 to H1 12 to H1 12 Total op
Slide 16: Capital structure
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 capital structure SHAPED BY THE BUILD-UP OF THE INVESTMENT PORTFOLIO Capital development in CHFm Required capital/Risk-weighted assets in CHFm • Increase of risk-weighted assets Tier 1 capital (31 Dec 2012) 118.6 Market risk (incl. derivatives) 42.0
Slide 17: Market update
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 market update 23 July 2013 | 17
Slide 18: Development of structured products market
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 DEVELOPMENT OF STRUCTURED PRODUCTS MARKET EQUITIES DOMINATING IN COMPETITIVE ENVIRONMENT European AuM (EURbn)* Swiss AuM (EURbn)* Asia Pacific AuM (EURbn)* • Despite solid equity market performance, AuM in Europe 731 49 622 continued to decrease in f
Slide 19: Leonteq platform in Switzerland well-positioned within target segment
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 LEONTEQ PLATFORM IN SWITZERLAND WELL-POSITIONED WITHIN TARGET SEGMENT Market share of Swiss exchange-listed structured investment products1 Issuer of collateralized structured products 25% (~82% market share) 2 20% Issuer of yield enhancement exchang
Slide 20: Business update
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 business update 23 July 2013 | 20
Slide 21: Leonteq Securities investment portfolio
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 LEONTEQ SECURITIES INVESTMENT PORTFOLIO COMPOSITION DOMINATED BY GOVERNMENT BONDS Outstanding volume Investment portfolio breakdown of Leonteq issuances1 • Outstanding volume of products by rating by country by sector issued under own name reached 10
Slide 22: White-labeling
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 White-labeling SIGNIFICANT PROGRESS IN OUR CORE STRATEGY Total issued products (H1 2013) H1 2013 Leonteq Securities White-labeling Total Launch of a new white-labeling Turnover (CHFbn) 3.6 4.2 7.8 81.8% 18.2% • cooperation in March 2013 with Notenste
Slide 23: Risk update
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 RISK UPDATE average VALUE AT RISK REMAINS STABLE AT CHF 1.2m in H1 2013 Total VaR2 (in CHFk) VaR by asset class1 VaR (CHFk) 2´500 VaR credit 1‘214 VaR equity 1‘041 VaR fixed income 344 2´000 VaR FX 399 VaR commodity 379 1´500 VaR total 856 1´000 500
Slide 24: Outlook & summary
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 OUTLOOK & SUMMARY 23 July 2013 | 24
Slide 25: Our strategy
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 OUR STRATEGY KEY STRATEGIC TARGETS REMAIN UNCHANGED White-labeling cooperations • Further develop existing cooperations and continue strengthening white-labeling strategyortunitie Regional development • Further regional diversification of income gene
Slide 26: Summary & outlook
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 SUMMARY & OUTLOOK • Reached independence in H1 2013 Summary H1 2013 • Proof of concept through onboarding of a new white-labeling partner • Strong financial resultsrtunities • Confident to achieve solid results for 2013 overall Outlook / Priorities •
Slide 27: Appendix
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 appendix 23 July 2013 | 27
Slide 28: Leonteq introduction
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 Leonteq introduction Who we are • Independent provider of investment products services with a modern and integrated platform • Combine a team of experts with longstanding industry experience • Comprehensive service offering, covering the entire inves
Slide 29: Leonteq at a glance
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 Leonteq at a glance we focus on • Modern, integrated technology platform and independent product provider client service... • Distributor of products in Europe and Asia with manufacturing centralized in Switzerland • Transparency, service, liquidity,
Slide 30: Leonteq is unique in the structured products market
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 Leonteq is unique in the structured products market well positioned across the entire value chain Offering focus Vanilla products Brokerage model for Client driven structured Proprietary trading (warrants, structured investment investment products dr
Slide 31: Market and business model
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 market and business model creating client value through control of engine “Electronics” (service elements) • Leonteq Market-making • Leonteq Product Reports • Leonteq Life Cycle Management • Leonteq Termsheets “Chassis” (issuer/guarantor) • Leonteq o
Slide 32: White-labeling
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 white-labeling win-win solution for all parties BENEFITS OF WHITE-LABELING SOLUTIONS… …for the partner company In a white-labeling coopera- • Attractive structure to serve the refinancing needs of banks, complementary to client deposits tion, structu
Slide 33: Guiding principles
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 guiding principles Y ENC SE RV AR IC SP E N Focused business A TR in attractive Transparency on risk, Service offering product niche return & performance differentiated by characteristics for proactively supporting clients Experienced clients through
Slide 34: Leonteq AG international presence
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 LEONTEQ AG INTERNATIONAL PRESENCE Leonteq securities AG • Zurich Geneva Guernsey Leonteq securities (EUROPE) Gmbh • Frankfurt London Paris Madrid Leonteq securities (Hong kong) ltd. • Hong Kong Leonteq SEcurities (MONACO) SAM • Monaco EFG B
Slide 35: Leonteq AG share overview
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 LEONTEQ AG SHARE OVERVIEW Share price development* Market capitalization CHF 402m (as per 05.07.2013)tunitie 70 Outstanding shares 6‘666‘665 registered sharesopport 65 Listing SIX Swiss Exchange Listing date 19.10.2012 60 Ticker symbol leon 55 Swiss
Slide 36: Management team & board of directors
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 Leonteq AG MANAGEMENT TEAM & BOARD OF DIRECTORS EXECUTIVE COMMITTEE Jan Schoch CEO (Founding partner) Michael Hartweg Deputy CEO, Head Structured Solutions (Founding partner) Roman Kurmann Chief Financial Officer Michael Hölzle Chief Operating Office
Slide 37: Awards
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 awards HIGH QUALITY OF SERVICES & INNOVATION RECOGNISED BY market 2013 SWISS DERIVATIVE AWARDS • 1st Category Best Equity Product • Top Service Award • Best Market Making Investment Products • Special Award – Innovator and IPO 2012 SWISS DERIVATIVE A
Slide 38: Milestones
leonteq AG | RESULTs PRESENTATION FIRST HALF 2013 Milestones 2007 Sep EFG Financial Products AG Zurich and EFG Financial Products Holding AG founded Nov EFG Financial Products (Guernsey) Limited founded as an issuer of products Dec 35 employees and FINMA Licenced Zurich Office of EFG Financial Produ