Bellevue Group Ag · SIX:BBN
Bellevue — H1 2018 Earnings Presentation
38 slides from Bellevue's earnings presentation, Jul 27, 2018
Slide 1: Bellevue Group half-year results 2018
Bellevue Group half-year results 2018 Presentation for investors, analysts and the media Zurich, July 27, 2018
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 Overview of H1 2018 1 André Rüegg, Group CEO H1 2018 Results 2 Daniel Koller, Group CFO Business Update & Highlights 3 André Rüegg, Group CEO 4 Questions & Answers Appendix 3
Slide 4: Overview of H1 2018
1 Overview of H1 2018 André Rüegg, Group CEO 4
Slide 5: Summary
Overview of H1 2018 Summary Operating profit rose 15% to CHF 13.5 mn (H1 2017: CHF 11.7 mn) Solid increase in Operating income up 6% to CHF 49.7 mn, mirroring the growth in assets under earnings power with management sustained high quality Pleasing net profit of CHF 11.5 mn (H1 2017: CHF 9.8 m
Slide 6: Sustainable increase in assets under management
Overview of H1 2018 Sustainable increase in assets under management Development of AuM 2013 – H1 2018 CHF million AuM at new record high of more than CHF 12.7 bn +6% 12,729 Solid growth in AuM of CHF 684 mn or 6% 12,045 First-half growth largely fueled by net new 2'104 10,550 2'023 money of CHF
Slide 7: Organic net new money a key growth driver
Overview of H1 2018 Organic net new money a key growth driver Development of AuM in H1 2018 CHF million Solid new money growth of CHF 552 mn Growing attractiveness of Bellevue Group led to net new money of CHF 552 mn or 9.1% (annualized), well within the targeted range of 132 12’729 5-10% p.a. 114
Slide 8: Solid operating profit growth
Overview of H1 2018 Solid operating profit growth Historical review of operating profit and cost/income ratio Operating profit Group operating profit up 15% to CHF million CHF 13.5 mn Continued growth in operating profit of +6% to +15% CHF 49.7 mn, in line with growth in the 14.6 17.6 underlying r
Slide 9: Significant increase in earnings power without sacrificing quality
Overview of H1 2018 Significant increase in earnings power without sacrificing quality Breakdown of operating income 2015 – H1 2018 Operating income Sustainable increase in recurring revenue CHF million Significant increase in recurring, asset-based revenue of 28% to CHF 46.9 mn Recurring revenu
Slide 10: Non-recurring income dependent on market developments
Overview of H1 2018 Non-recurring income dependent on market developments Development 2015 – H1 2018 Performance fees (operational) Performance fees can distort operating CHF 1,000 results 7'525 Performance fees of CHF 1.7 mn comparable to previous period but well below H2 2017 level (CHF 7.5 mn)
Slide 11: H1 2018 Results
2 H1 2018 Results Daniel Koller, Group CFO 11
Slide 12: Asset Management
H1 2018 Results Asset Management Divisional results CHF 1'000 H1 2018 H1 2017 ∆ YoY Operating income Management fees 45'579 35'439 +10'140 +28.6% • Management fees Performance fees 1'727 1'633 +94 +5.8% - Investment companies +31% Other income -1'033 -1'053 +20 -1.9% - Funds & Mandates +50% Services
Slide 13: Bank am Bellevue
H1 2018 Results Bank am Bellevue Divisional results CHF 1'000 H1 2018 H1 2017 ∆ YoY Operating income Asset management 767 245 +522 n.m. • Brokerage and CF Interest income 2'018 1'319 +699 +53.0% - Discontinuation of CF transactions Trading income -520 2'188 -2'708 -123.8% and decline in Brokerage in
Slide 14: Group
H1 2018 Results Group Divisional results CHF 1'000 H1 2018 H1 2017 ∆ YoY Operating expenses Operating income -62 11 -73 n.m. • Personnel expenses Personnel expenses -2'626 -1'732 -894 +51.6% - Net (with offsetting other segments, General expenses -860 -710 -150 +21.1% without BoD) CHF 0.8 mn Service
Slide 15: Consolidated financial statements
H1 2018 Results Consolidated financial statements CHF 1'000 H1 2018 H1 2017 ∆ YoY Summary Operating income 49'659 46'823 +2'836 +6.1% Operating expenses -36'166 -35'111 -1'055 +3.0% • Improvement of the operating profit compared to previous year to CHF Operating profit 13'493 11'712 +1'781 +15.2% 13
Slide 16: Business Update & Highlights
3 Business Update & Highlights André Rüegg, Group CEO 16
Slide 17: Highlight #1: Very good developments of BB Biotech Ltd.
Business Update & Highlights Highlight #1: Very good developments of BB Biotech Ltd. BB Biotech Ltd. continuously strong, with upcoming inclusion in the SPI Index and SMIM 10Y performance (in CHF) Convincing long-term performance, also vs. Rebased, in % SPI and SMIM 800 YTD 5 years 10 years 700 BB B
Slide 18: Highlight #2: Wave of innovation in healthcare product range
Business Update & Highlights Highlight #2: Wave of innovation in healthcare product range Snapshot of our new investment products Profit from transformative First healthcare fund with a focus Risk capital company that invests technology in the healthcare on sustainability in private, innovativ
Slide 19: Highlight #3: Acquisition of MARS AM GmbH by StarCapital AG
Business Update & Highlights Highlight #3: Acquisition of MARS AM GmbH by StarCapital AG Facts & figures Team Key Data Management • Founded: 2013 • Registered office: Bad Homburg vor der Höhe • License: Art. 32 KWG • No. of employees: 4 Andreas Bichler Damian Krzizok Jens Kummer • AuM as of 30.06.18
Slide 20: Highlight #4: Bank am Bellevue 2.0
Business Update & Highlights Highlight #4: Bank am Bellevue 2.0 Revitalization and growth opportunities thanks to new profile Repositioning as a wealth manager completed Providing premium portfolio and investment advisory solutions and special services with a New strategic business focus on entr
Slide 21: Strategic developments and priorities
Business Update & Highlights Strategic developments and priorities Group Strategy & Performance Achievements 2017 Strategic priorities in 2018 Vision 2020 AuM base further diversified Asset Management: “Grow with the Asset and wealth manager, highly and strengthened products and innovate” focuse
Slide 22: Performance criteria 2018 – solid basis for future development
Business Update & Highlights Performance criteria 2018 – solid basis for future development Better business profile enables across-the-board progress Further strengthening of earnings power underpinned by a growing AuM base 1 Recurring revenue Broadly based and well-diversified in terms of asset
Slide 23: Questions & Answers
4 Questions & Answers 23
Slide 24: Appendix
# Appendix 24
Slide 25: Business Profile & Strategy
Appendix Business Profile & Strategy Asset & Wealth Management – independent, entrepreneurial, committed Established The Board of Chairman: Thomas von Planta Directors Daniel Sigg Mirjam Staub-Bisang 1993 Rupert Hengster Veit de Maddalena Credo “We eat our own cooking” Legal Market cap in CHF entiti
Slide 26: Business Profile & Strategy
Appendix Business Profile & Strategy Asset & Wealth Management – business model and offering Investment funds and mandates Healthcare strategies Holistic, anti- Specialized equity strategies cyclical strategies Product-/ Absolute Return investment- oriented Active Management Benchmark agnostic
Slide 27: Business Profile & Strategy
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 28: Business Profile & Strategy
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 29 Frankfurt independe
Slide 29: Business Profile & Strategy
Appendix Business Profile & Strategy Asset Management – business model and offering Source: Bellevue Group, June 30, 2018 29
Slide 30: Business Profile & Strategy
Appendix Business Profile & Strategy Bellevue Asset Management & StarCapital: Complementarity based on active management Our corporate culture is shaped by the independent and entrepreneurial way we think and act. Portfolio managers and key employees have a personal stake in the performance of our i
Slide 31: Business Profile & Strategy
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 32: Excellent performance
Appendix Excellent performance Numerous awards received by Asset Management Healthcare Specialized equity Global bond & Multi-asset strategies strategies strategies equity strategies Source: Bellevue Group, June 30, 2018 32
Slide 33: Strategic developments and priorities
Appendix Strategic developments and priorities Bank am Bellevue – business model and offering Source: Bellevue Group, June 30, 2018 33
Slide 34: Business Profile & Strategy
Appendix Business Profile & Strategy Structure of the shareholder base as of June 30, 2018 Non-registered public shareholders (n/a) Core 15.5% shareholders Strong commitment of core shareholders (3) Substantial increase in management/ 31.2% employee shareholders (31.12.2017: 9.6%) Base of inst
Slide 35: Business Profile & Strategy
Appendix Business Profile & Strategy Strong performance vs. CH-Indices Performance (3 years) Rebased in % 250 Market capitalization as of 30.06.2018 225 CHF 317 mn +107.4% 200 Dividend for 2017 175 CHF 1.10* 150 Dividend yield as of 31.12.2017 125 4.5% +15.8% 100 +8.6% * cash distribution from capit
Slide 36: Business Profile & Strategy
Appendix Business Profile & Strategy Strong performance vs. CH-Indices Performance (1 year) Performance (5 years) Rebased in % Rebased in % 175 400 350 150 +209.2% +37.1% 300 125 250 +2.0% 200 100 +0.0% 150 +42.5% 75 +31.8% 100 50 50 Jun-17 Dec-17 Jun-18 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Bel
Slide 37: 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 38: 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] 38