Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Evli Bank — H1 2018 Earnings Presentation
28 slides from Evli Plc Class B's earnings presentation, Jul 13, 2018
Slide 1: Commission Income and Assets Under Management Continued to Grow
COMMISSION INCOME AND ASSETS UNDER MANAGEMENT CONTINUED TO GROW JANUARY-JUNE 2018 Maunu Lehtimäki, CEO Juho Mikola, CFO July 13, 2018
Slide 2: Evli in Brief
Evli in Brief Evli is a Wealth Management Bank that helps Net Assets Under Management (bn €) institutions, corporations and private persons increase Growth p.a. their wealth. 11.9 +16.4% 11.2 0.7 10.6 Two client segments supported by Group 0.6 0.8 0.5 0.8 Operations: 9.4 1.4 ‐ Wealth Management an
Slide 3: Two client segments
Two client segments 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 institutions arrangements for l
Slide 4: Wealth Management at the core of Evli's services
Wealth Management at the core of Evli’s services Incentive plans Evli’s business model is built around: Scalability: Structured Corporate Growth in AUM translating into superior products Finance Operating profit, ROE and High scalability Wealth Strategic positioning: Management Proprietary know
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 Stewardship oriented Net Revenue & Total costs (M€) Return on Equity (%) 71.4 64.2 28.8% 59.7 60.0 25.5% 55.5 48.3 20.2% 50.0 51.0 48.9 50.1 48.
Slide 6: Agenda
Agenda 1 Highlights 1-6/2018 2 Financial Figures 3 Strategy & Key Focus Areas 2018 4 Outlook 2018 5
Slide 7: Assets Under Management at an All Time High
ASSETS UNDER MANAGEMENT AT AN ALL TIME HIGH HIGHLIGHTS 1-6/2018
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 12.2% Strategic KPI - Operating profit grew 6.2% - - Once again strong fund sales (EUR 0.5 bn) Assets under Management to all time high of EUR 11.9 Return on Equity (Target 15.0%) 28.8% (
Slide 9: Wealth Management & Investor Clients
Wealth Management & Investor Clients Continued growth in number of clients Net revenue (M€) Net revenue increased 10.3% 55.4 42.8 Operating profit (before allocations) increased 26.3% 37.4 42.5 29.5 AUM grew to a new record of EUR 11.9 billion 26.8 Growth in traditional and digital asset man
Slide 10: Advisory & Corporate Clients
Advisory & Corporate Clients Stable development Net revenue (M€) Net revenue increased by 22.5% 9.9 Operating profit (before allocations) increased 160.4% 6.6 Corporate Finance 5.5 4.8 4.6 - 3.8 Advisor in 6 transactions during Q2 - Activity on the M&A market has remained strong Incentive sy
Slide 11: Net Commission Income Continued to Grow
NET COMMISSION INCOME CONTINUED TO GROW FINANCIAL FIGURES
Slide 12: Financial Development 2014-Q2/2018
Financial Development 2014-Q2/2018 Operating profit (M€) ja profit margin (%) Net revenue (M€) Net commission income (M€) 21.3 65.2 71.4 64.2 57.2 60.0 53.1 54.3 59.7 28.8% 13.3 29.8% 29.8% 11.1 34.3 9.8 10.4 34.1 34.9 9.8 30.6 20.7% 16.3% 18.5% 2014 2015 2016 2017 1-6 1-6 2014 2015 2016 2017 1-6 20
Slide 13: Profit and Loss Statement
Profit and Loss Statement M€ 1-6/2018 1-6/2017 Change, % 2017 2016 2015 2014 Net interest 0.3 0.5 -50% 0.9 1.6 1.4 1.0 Net commissions 34.3 30.6 12% 65.2 54.3 57.2 53.1 Net income from securities trading and FX 0.4 3.0 -86% 4.9 4.0 5.4 5.2 Other operative income 0.0 0.0 0% 0.4 0.1 0.2 0.4 NET REVENU
Slide 14: Balance Sheet
Balance Sheet 30.6. 30.6. 31.12. 30.6. 30.6. 31.12. ASSETS, M€ 2018 2017 2017 LIABILITIES, M€ 2018 2017 2017 Liabilities to credit institutions 237.1 438.9 383.2 10.0 50.5 31.7 Liquid assets and central banks Debt securities eligible for refinancing Liabilities to the public and 36.2 31.2 36.3 504.4
Slide 15: Key figures
Key figures 1-6/2018 1-6/2017 2017 2016 2015 Profitability key figures Return on equity (ROE), % 28.8 22.3 25.5 14.3 20.2 Strategic KPI Return on assets (ROA), % 2.1 1.5 2.0 1.4 2.2 Balance sheet key figures Return on Equity (Target 15.0%) 28.8% Equity-to-assets ratio, % 7.2 5.6 7.6 8.6 11.1 (1-6/20
Slide 16: Share Price Development and Trading Volume
Share Price Development and Trading Volume Share price development and trading volume** 2.12.2015–30.6.2018 Shareholdings by owner group 30.6.2018 Daily turnover, pcs Closing price, € 1.3% 1.0% 140 000 11,00 25.4% Closing price 30.6.2018 EUR 9.84 120 000 10,00 0.8% 100 000 3.2% 65.5% 9,00 80 000 Pri
Slide 17: Simply Unique: Strategy & Key Focus Areas 2018
SIMPLY UNIQUE STRATEGY & KEY FOCUS AREAS 2018
Slide 18: Growth Strategy
Growth Strategy Megatrends Attifical Intelligence Robotization Cyber risks Big data Digitalization Increased competition Blurring industry boundaries Empowerment of customers Globalization Business environment Increased regulation and control Societal Aging of the population transitions Digital nati
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: The Result for 2018 Is Estimated to Be Clearly Positive
THE RESULT FOR 2018 IS ESTIMATED TO BE CLEARLY POSITIVE OUTLOOK 2018 UNCHANGED
Slide 22: Result for 2018 is Estimated to be Clearly Positive
Result for 2018 is Estimated to be Clearly Positive This view is supported by: - Demand for Evli’s products and services has been stable and AUM has grown substantially over the recent years. - The outlook for advisory services is stable, as the demand has developed favorably. However: - The ris
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: Information set above is not intended as investment recommendation
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, views, opinions, e
Slide 25: Appendicies
Appendicies EVLI
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
Slide 28: Fund AUM Growth
Fund AUM Growth International clients share of Fund AuM 22% Development of assets in mutual funds 2014–Q1/2018 (€ bn.) Growth. p.a. 7.7 7.8 +26.5% 6.5 1.7 1.7 1.1 5.2 +15.2% 4.4 0.9 0.9 6.0 6.1 5.4 4.3 3.5 Sales through Evli 2014 2015 2016 2017 2018 1-3 Sales through co-operation partners Finnish cl