Bellevue Group Ag · SIX:BBN
Bellevue — FY2018 Earnings Presentation
40 slides from Bellevue's earnings presentation, Feb 26, 2019
Slide 1: Bellevue Group results 2018
Bellevue Group results 2018 Presentation for investors, analysts and the media Zurich, February 26, 2019
Slide 2: Disclaimer
Disclaimer This document was produced by and the opinions expressed are those of Bellevue Group AG («Bellevue») as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation
Slide 3: Agenda
Agenda A Summary of Fiscal 2018 1 André Rüegg, Group CEO Results for Fiscal 2018 2 Michael Hutter, Group CFO a.i. Business & Strategy Update 3 André Rüegg, Group CEO 4 Questions & Answers Appendix 3
Slide 4: A Summary of Fiscal 2018
1 A Summary of Fiscal 2018 André Rüegg, Group CEO 4
Slide 5: Summary
A Summary of Fiscal 2018 Summary Solid overall results despite headwinds Operating profit down 16% to CHF 24.7 mn (prev. year: CHF 29.3 mn) Slight, market-induced Operating income stable at CHF 98.1 mn (prev. year: 98.5 mn), with significantly higher drop in earnings, quality recurring income, u
Slide 6: Temporary lull in long-term growth of assets under management
A summary of Fiscal 2018 Temporary lull in long-term growth of assets under management Development of AuM 2013 – 2018 CHF million Market-related decline in AuM to CHF 10.8 bn -10% The entire CHF 1.2 bn or 10% decline in AuM is entirely due to the market correction 12,045 11,800* Steady increase
Slide 7: Market turmoil leads to strikingly different H1 and H2 developments
A summary of Fiscal 2018 Market turmoil leads to strikingly different H1 and H2 developments Development of AuM in 2018 CHF million AuM rise and fall with market developments +132 12,729 Sustained growth momentum in long-term +114 +438 trend in H1 2018 thanks to constructive 12,045 market environm
Slide 8: Net new money flows also varied by product
A summary of Fiscal 2018 Net new money flows also varied by product Net new money inflows/outflows by asset class and product category, 2018 CHF million Differentiable money flows with differing margin quality +694 Demand for specialized healthcare strategies with higher margin remained intact eve
Slide 9: Better business base with stronger earnings power
A summary of Fiscal 2018 Better business base with stronger earnings power AuM and operating income 2013 – 2018 AuM CHF million Operating income Assets under management main driver of CHF million recurring income 14'000 120.0 Historical expansion of asset base leads to 98.5 98.1 sustained earnings
Slide 10: Market-induced decline in operating profit
A summary of Fiscal 2018 Market-induced decline in operating profit Historical review of operating profit and cost/income ratio Operating profit Solid but lower operating profit of CHF million CHF 24.7 mn -16% Overall earnings stable and good quality 29.3 Operating expenses up CHF 4.2 mn to CHF
Slide 11: Results for Fiscal 2018
2 Results for Fiscal 2018 Michael Hutter, Group CFO a.i. 11
Slide 12: Asset Management
Results for Fiscal 2018 Asset Management Divisional results CHF 1'000 2018 2017 ∆ YoY Operating income Management fees 92'064 78'083 +13'981 +17.9% • Management fees Performance fees 2'449 8'395 -5'946 -70.8% - Investment companies +15% Other income -1'919 -2'192 +273 +12.5% - Funds & Mandates +21%
Slide 13: Bank am Bellevue
Results for Fiscal 2018 Bank am Bellevue Divisional results CHF 1'000 2018 2017 ∆ YoY Operating income Asset management 1'746 1'508 +238 +15.8% • Brokerage and CF Interest income 2'332 1'177 +1'155 +98.1% - Discontinuation of CF transactions and Trading income -874 2'410 -3'284 -136.3% decline in Br
Slide 14: Group
Results for Fiscal 2018 Group Divisional results CHF 1'000 2018 2017 ∆ YoY Operating expenses Operating income -133 -9 -124 n.m. • Personnel expenses Personnel expenses 4'600 3'760 +840 +22.3% - BD: CHF 1.4 mn (+CHF 0.7 mn) General expenses 1'503 1'355 +148 +10.9% • General expenses Services from/fo
Slide 15: Consolidated financial statements
Results for Fiscal 2018 Consolidated financial statements CHF 1'000 2018 2017 ∆ YoY Summary Operating income 98'078 98'516 -438 -0.4% Operating expenses 73'384 69'233 +4'151 +6.0% • Decrease of the operating profit compared to previous year by 16% to CHF 24.7 mn Operating profit 24'694 29'283 -4'589
Slide 16: Equity situation (consolidated)
Results for Fiscal 2018 Equity situation (consolidated) Situation at December 31, 2018 – equity nearly 18% higher than year-end 2017 Breakdown of eligible capital Allocation of eligible capital TCHF TCHF Shareholders' equity (IFRS) Deductions T2 capital Eligible capital Σ 86’385 200'000 90'000 80'00
Slide 17: News on Bellevue interest in SIX
Results for Fiscal 2018 News on Bellevue interest in SIX Bellevue Group AG holds through its subsidiary Bank am Bellevue AG a historical 1.175% interest in SIX Group AG Background The stated value of this interest on 31.12.2017, applying an illiquidity discount and taking into consideration defe
Slide 18: Business & Strategy Update
3 Business & Strategy Update André Rüegg, Group CEO 18
Slide 19: How can we continue to grow?
Business & Strategy Update How can we continue to grow? Our growth drivers AuM growth Market performance New money growth Acquisitions drivers Structural growth Attractiveness of the Impressive track record themes in the entire product range (3 successful takeovers) equities segment High p
Slide 20: Flagship product BB Biotech – continued growth case
Business & Strategy Update Flagship product BB Biotech – continued growth case Inclusion in Swiss indices SPI and SMIM in September 2018 10y performance (in CHF) Solid performance result in the short term Indexed in % and very compelling long term track record 900 2018 5 years 10 years 800 700 BB Bi
Slide 21: Performance quality as an indispensable growth driver
Business & Strategy Update Performance quality as an indispensable growth driver Several strategies with robust performance results in a challenging market environment BB Healthcare Trust Plc BB Adamant Medtech & Services Adamant Global Healthcare Index Investment trust that invests in the global Eq
Slide 22: Absolute return strategy with extremely solid annual performance
Business & Strategy Update Absolute return strategy with extremely solid annual performance High stability thanks to moderate equity exposure and defensive basic portfolio BB Global Macro Summary UCITS V regulated absolute return strategy with daily liquidity 2018 was a difficult year for investor
Slide 23: Innovation boost in our healthcare product range
Business & Strategy Update Innovation boost in our healthcare product range New investment vehicles in a nutshell Benefitting from technological shift First healthcare fund to focus on Venture capital franchise to in the healthcare sector sustainability criteria exclusively invest in private
Slide 24: Bank am Bellevue
Business & Strategy Update Bank am Bellevue Challenging repositioning in the face of market headwinds Repositioning with new business model began in H2 2017 Process of realignment Premium portfolio and investment advisory solutions and special services with a focus on and restructuring entrepren
Slide 25: Strategic developments and priorities – status & outlook
Business & Strategy Update Strategic developments and priorities – status & outlook Group Strategy & Performance Achievements 2018 Strategic priorities in 2019 Vision 2022 Asset Management: “Grow with the Asset and wealth manager with a Solid AuM base with further products and innovate”, turnaroun
Slide 26: Performance criteria 2019 – solid basis for future growth
Business Update & Highlights Performance criteria 2019 – solid basis for future growth Long-term goals reiterated Further strengthening of earnings power underpinned by a growing AuM base 1 Recurring income Broadly based and well-diversified in terms of asset classes and client segments Assets u
Slide 27: Outlook for 2019
Business & Strategy Update Outlook for 2019 Encouraging course of business in Q1 2019 vs. H2 2018, not only market-driven Last year's “dip” due to market correction offset again: AuM up >10% YTD, short-term Good start to performance quality of investment products & strategies reestablished fisca
Slide 28: Questions & Answers
4 Questions & Answers 28
Slide 29: Appendix
# Appendix 29
Slide 30: Business Profile & Strategy
Appendix Business Profile & Strategy Asset & Wealth Management – independent, entrepreneurial, committed Chairman: Thomas von Planta Established The Board of Veit de Maddalena* Directors 1993 Daniel Sigg Mirjam Staub-Bisang Rupert Hengster Katrin Wehr-Seiter* Credo Urs Schenker* “We eat our own cook
Slide 31: Milestones in the Group's history
Appendix Business Profile & Strategy Milestones in the Group's history 1993 1994 1997 2006 2009 Bellevue Group IPO Launch of Launch of first Launch of established BB Medtech AG first Ventures investment fund Bellevue SICAV funds (Entrepreneur CH) (Lux) IPO BB Biotech AG (BioVentures) 2014 2016 2017
Slide 32: Organizational stability, continuity and growth
Appendix Business Profile & Strategy Organizational stability, continuity and growth “We eat our own cooking” Portfolio managers and key employees have a personal stake in the performance of our 4 London investment vehicles Our corporate culture is shaped by the New York 3 27 Frankfurt independe
Slide 33: Competencies in Asset Management
Appendix Business Profile & Strategy Competencies in Asset Management Healthcare Specialized equity Global bond & Multi-asset strategies strategies strategies equity strategies Healthcare Global Entrepreneur Argos (flexible, Global Macro Switzerland dynamic bond strategy) Biotech Winbond
Slide 34: Strategic developments and priorities
Appendix Strategic developments and priorities Bank am Bellevue – business model and offering Source: Bellevue Group, December 31, 2018 34
Slide 35: Structure of the shareholder base as of December 31, 2018
Appendix Business Profile & Strategy Structure of the shareholder base as of December 31, 2018 Non-registered public shareholders (n/a) Core 12.4% shareholders Strong commitment of core shareholders (3) Substantial increase in management/ 31.2% employee shareholders (31.12.2017: 9.6%) Base of
Slide 36: Strong performance vs. CH-Indices
Appendix Business Profile & Strategy Strong performance vs. CH-Indices Performance (3 years) Rebased in % 225 Market capitalization as of 31.12.2018 200 CHF 267 mn 175 +66.9% Proposed dividend for 2018 150 CHF 1.10* 125 +8.1% Dividend yield as of 31.12.2018 100 +5.9% 5.6% * Which includes CHF 0.25 p
Slide 37: Changes in the Board of Directors as of March 19, 2019
Appendix Changes in the Board of Directors as of March 19, 2019 Further competence in the Board of Directors Veit de Maddalena Katrin Wehr-Seiter Urs Schenker New – Chairman New – Member New – Member Since 2018 Member of the Board Partner & Managing Director of BIP Lawyer at Walder Wyss, Zuric
Slide 38: Significant increase in earnings power without sacrificing quality
A recap of fiscal 2018 Significant increase in earnings power without sacrificing quality Breakdown of operating income, 2013 – 2018 Operating income Sustainable increase in recurring income CHF million Significant increase in recurring, asset-based income of 18% to CHF 94.8 mn 98.5 98.1 1.6 1.6
Slide 39: Why turn to Bellevue Group?
Appendix Why turn to Bellevue Group? Highlights Bellevue Group Independent, efficient, entrepreneurial management style ever since it was established in Distinctive financial boutique 1993 with a focus on Asset & Highly specialized, well-diversified spectrum of Asset Management competencies Weal
Slide 40: Contact
Contact Investor Relations Daniel Koller Bellevue Group Seestrasse 16 8700 Küsnacht Phone +41 44 267 67 00 Fax +41 44 267 67 01 [email protected] 40