Efg International Ag · SIX:EFGN
Efg International — H1 2022 Earnings Presentation
39 slides from Efg International's earnings presentation, Jul 21, 2022
Slide 1: Half-year 2022 results presentation
ErG < Half-year 2022 results presentation FG ° 21 July 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
ErG Key highlights Giorgio Pradelli Chief Executive Officer ional | Halfyear 2022 results 2 july 202 Page 3
Slide 4: Continued business momentum leads to record underlying net profit
Continued business momentum leads to record underlying net profit ErG 1. 7n Net new assets in CHF 115m Underlying net profit, in CHF EFG International | HalFyear 2022 results Continued growth momentum - Positive NNA development in adverse markets; NNA growth of 4% excluding deleveraging by clients +
Slide 5: Consistent delivery of 2022 strategic plan - sustainable and profitable growth
Consistent delivery of 2022 strategic plan - sustainable and profitable growth Increased client focus + Consistentand positive NNA for every single semester since 2019 - Shifttowards higher value products and services leading to highest operating income over the past three years - Enhanced offeringa
Slide 6: Financial performance
Financial performance Dimitris Politis Chief Financial Officer ional | Halfyear 2022 results a
Slide 7: Presentation of financial performance
Presentation of financial performance ErG Presentation of half-year 2022 financial results + The reconciliation of underlying net profit to IFRS results is included on slide 30: The only items excluded from underlying performance are the “contribution of the life insurance portfolios”, the “legacy l
Slide 8: Demonstrating continued operating leverage despite challenging market environment
Demonstrating continued operating leverage despite challenging market environment ErG Business Profitabilty Capital NNA of CHF 1.7 bn, annualised growth rate of 2.0%, reflecting deleveraging and de-risking by clients. Excluding deleveraging effects the annualised growth rate was at 3.9% AuM at CHF 1
Slide 9: 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 10: Maintained positive growth trajectory and generated further operating leverage
Maintained positive growth trajectory and : y= generated further operating leverage ErG Continued business growth despite challenging markets Underlying operating profit up 15% vs. 1H21 NNA growth annualised Evolution of underlying profit in% in CHFmn excl. 55 deleveraging effect 1H20 1H21 1H22 1H20
Slide 11: Continued progress in lifting profitability to a higher level
Continued progress in lifting profitability to a higher level, especially after concluding Footprint projects Operating leverage driving growth Underlying operating profit (in CHF mn) Revenue margin CIR 1H21 1H22 1H22 excl. A&G and Footprint* * Primarily shutdown of Milan operations (June 2022) EFG
Slide 12: Underlying profitability vs. IFRS net profit
Underlying profitability vs. IFRS net profit Reconciliation of underlying net profit (in CHF mn) +40% Provision (6.5) net oftax ErG Transamerica settlement - life insurance Underlying Underlying net profit net profit 1H21 EFG International | HalFyear 2022 results insurance (5.2) Costs (37) Legacy In
Slide 13: Achieved consistent and positive NNA growth over the last 7 semesters
Achieved consistent and positive NNA growth y= over the last 7 semesters ErG NNA growth at 2.0% NNA growth across all three growth levers Revenue-generating AuM evolution _ (in CHE bn) Existing CROs (in CHF bn) excl. W deleveraging —x | 1.9 3.9% annualised 1 (0.2) growth excl. (17.8) (03) (0.9) 1H21
Slide 14: Continued improvement of CRO scale and efficiency
Continued improvement of CRO scale and efficiency ErG CRO hiring momentum CRO hiringand performance management remain Number of CROs top priorities + CRO hiring- dedicated strategic recruitment function shaw and + Strong CRO hiring pipeline - team hirings remain Partners priority, 1H22 CRO hiringin
Slide 15: Continental Europe & Middle East driving growth
Continental Europe & Middle East driving growth All regions growing (excl. loans) rG Business development by region Revenue-generating AuMs = as % of ~RoAUuM* NNA Annualized NNA (excl. loans) Annualized CHF 155.8 bn total AuM (in bps) CHF 1.7 bn growth CHF 2.6 bn growth Switzerland & Italy Continent
Slide 16: Net interest income (NII) drives revenue growth
Net interest income (NII) drives revenue growth ErG Underlying operating income up 3.0% year on year Underlying operating income (in CHF mn) vs.1H21 43% 11 bps +11% 19 bps +21% 43 bps 5% 1H22 excl. A&G and Footprint ™@ Underlyingnetother income O Average revenue-generating AUM (in CHF bn) HH Underly
Slide 17: Cost-income ratio improves substantially
Cost-income ratio improves substantially Extra benefits from Footprint actions in 2H 2022 ErG Underlying cost-income ratio at 77.3% Operating expenses flat year on year {ader ying operating expenses Decrease in personnel expenses driven by reduced (in CHF mn) payroll expenses FTES - Increase in othe
Slide 18: Balance sheet
Balance sheet Total assets: Total liabilities & equity: CHF 43.9 bn CHF 43.9 bn Financial instruments * Including financial liabilities at amortised cost (structured products funding) EFG International | HalFyear 2022 results ErG Strong and highly liquid balance sheet Loan/deposit ratio of 48%* Liqu
Slide 19: Strong regulatory capital position
Strong regulatory capital position Regulatory capital position Total Capital Ratios* (in %) 215 18.5 19.3 31Dec 2021 30Jun 2022 30 Jun 2022 adjusted = Common Equity Additional Tier1 mTier 2 + Leverage ratio(FINMA) at 4.0% (4.1% post A&G transaction) * 7H 2022 1ERS Basel Ill EFG International | HalFy
Slide 20: Underlying profit drives capital generation
Underlying profit drives capital generation Evolution of CET1 Capital ratio* (in %) Underlying net capital generation Revaluation of the investment portfolio expected over the next 24 months Total Capital | 21.5 Ratio* 1.2 Total Capital Total Capital Ratio™ (0.1) ( “ane! 0.7) CETI Capital CET! Capit
Slide 21: Executing the 2022 strategic plan
Executing the 2022 strategic plan ErG % 6 2019-2020 2021-2022 (\ 2 S 6 Operational efficiency W_ s— = Co Executing remaining synergies v management Digital solutions WA Investment for growth, e.g. CRO hiring v Dividend payout ratio increase to 50% Y 2 Capital v = management acitiieysl Managing exces
Slide 22: Outlook and strategic priorities
Er Outlook and strategic priorities Giorgio Pradelli Chief Executive Officer ional | Halfyear 2022 results 21 July 2022
Slide 23: Consistently delivering on financial targets
Consistently delivering on financial targets ErG Financialtargets End-June 2022 3) for end-2022 Post footprint actions NNA growth Sis average Undertving ROTE om “os Minimum CET1 ratio: 14%2 15.5% Capital management guidance Dividend payout: 50% >50% 1 Compound Annual Growth Rate (CAGR) over the peri
Slide 24: Continued focus to further enhance quality and drive sustained value for all stakeholders
Continued focus to further enhance quality and drive sustained value for all stakeholders ErG O c ©: — = = Clients Content Simplicity + Superior service and - Investment-led approach + Optimised geographical investment solutions + Openarchitecture and footprint + Entrepreneurial and very proprietary
Slide 25: Competitive business model delivers sustainable and profitable growth throughout the economic cycle
| Competitive business model delivers sustainable and profitable growth throughout the economic cycle ErG Maintained positive trajectory in the face of highly volatile and uncertain environment Continuous and targeted transformation of business, while delivering strong N growth, and being the adviso
Slide 26: EFG Inte!
EFG Inte! Page 26 I Halfyear 2022 results
Slide 27: Appendix
Appendix EFG International | HalFyear 2022 results 21 July 2022 Page 27
Slide 28: Income statement (IFRS)
Income statement (IFRS) ErG (in CHF million) 1H21 2H21 1H22 Net interest income 1072 1321 152.0 Net banking fee & commission income 374A 382.4 3559 Net other income 128.0 1108 96.0 Operating income 629.3 625.3 603.9 Personnel expenses (3458) (345.2) (334.2) Other operating expenses (89.6) (105.0) (1
Slide 29: Underlying income statement
Underlying income statement ErG (in CHF million) ~” li Net interest income 1274 130.4 154.0 Net banking fee & commission income 374A 382.4 3559 Net other income Personnel expenses (3458) (345.2) (334.2) Other operating expenses (120.0) (137.6) (131.6) Provisions (112) (194) (06) Loss allowances expe
Slide 30: Reconciliation of Underlying results to IFRS results 1H22
Reconcilation of Underlying results to IFRS results 1H22 ErG 5 ran Acquisition relate | Exceptional legal costs & (in CHF million) Underlying results 1422 intangible amortisation provisions IFRS results 122 Net interest income 154.0 (2.0) 1520 Net banking fee & commission income 3559 3559 Net other
Slide 31: Underlying income statement - excl. A&G
Underlying income statement — excl. A&G ErG (in CHF million) EFG- 1H22 A&G standalone - 1H22 EFG - 1H22 excl. A&G 1522 Net interest income 154.0 Net banking fee & commission income 3559 m3 328.6 Net other income 914 Personnel expenses (334.2) (19.1) (315.1) Other operating expenses (131.6) (7.6) (12
Slide 32: Balance sheet (IFRS)
Balance sheet (IFRS) Cash and balances with central banks 9801 Treasury bills and other eligible bills 1453 Due from other banks 2,562 Derivative financial instruments 74 Financial assets at fair value through P&L. 1807 Investment securities 5,778 Loans and advances to customers 18226 Property, plan
Slide 33: Breakdown of AuM
Breakdown of AuM ErFG Cash & deposits 367 Bonds 20% 19% 30.1 Equities 36% 33% 51.2 Structured products 3% 3% 51 Loans 11% 12% 18.4 Hedge funds 2% 2% 34 Other 1% 1% 109 Total 100% 100% 155.8 68.1 EUR 24% 23% 36.4 GBP 10% 10% 159 AUD 10% 10% 150 CHF 4% 4% 69 Other 9% 9% 13.4 Total 100% 100% 155.8 EFG
Slide 34: Segmental analysis 1H22
Segmental analysis 1H22 ErG fee summary care eh “ope & Americas Asia Pacific me wealth moe Corporate | Elimination Total Middle East Solutions Treasury Segment revenues 1656 1017 423 76.1 85.0 (131) ° 603.9 Segment expenses. (1187) (935) (43.4) (59.5) (727) (52.0) (22.4) (9.6) - (471.8) Pre-provi pr
Slide 35: Segmental analysis 2H21
Segmental analysis 2H21 ErG fee summary care eh “ope & Americas Asia Pacific me wealth moe Corporate | Elimination Total Middle East Solutions Treasury Segment revenues 1475 106.4 386 nS 922 “7 : 6253 Segment expenses. (127.5) (955) (48.0) (66.7) (73.2) (43.1) (18.5) (144) - (486.6) Pre-provision pr
Slide 36: Segmental analysis 1H21
Segmental analysis 1H21 ErG fee summary care eh “ope & Americas Asia Pacific me wealth moe Corporate | Elimination Total Middle East Solutions Treasury Segment revenues 148.2 1020 409 29 867 39.2 : 6293 Segment expenses. (1185) (94.8) (40.3) (64.3) (71.5) (478) (233) (9.1) - (469.6) Pre-provision pr
Slide 37: 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 + Synthetic portfolio carried at fair value for IFRS accounts. Limited P&L volatility through
Slide 38: Update on Life Insurance Exposures (II)
Update on Life Insurance Exposures (II) rG Outright portfolio Direct holding of life insurance policies for 166 insureds (2021: 181) of an average age of 93.1 years Death benefit CHF 1,184.8 mn - Carrying value: CHF 616.4 mn + 1H 2022 premium: CHF 62.0 mn Life expectancy: 3.8 years. Non-underlying +
Slide 39: Contacts
Contacts ErFG 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 Bleicherw