Vontobel : Investor Relations presentation - Taking the client's view

Taking the client's view

Evolving into a client-centric investment manager

		Zeno Staub	Martin Sieg Castagnola
		CEO	CFO
		December 9, 2019

Cautionary statement regarding forward-looking statements and disclaimer

December 9, 2019

This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factors. These projections and forward-looking statements reflect management's current views and estimates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Vontobel's future results may vary materially from the results expressed in, or implied by, the projections and forward-looking statements contained in this document. Potential risks and uncertainties include, in particular, factors such as general economic conditions and foreign exchange, share price and interest rate fluctuations as well as legal and regulatory developments. Vontobel has no obligation to update or alter its forward-looking statements based on new information, future events or other factors.

This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in any jurisdiction, in particular Switzerland and the United States. No investment decision relating to securities or financial instruments of or relating to Vontobel Holding AG or its affiliates should be made on the basis of this document. No representation or warranty is made or implied concerning the information contained herein, and Vontobel Holding AG assumes no responsibility for the accuracy, completeness, reliability or comparability thereof. Information relating to third parties is based solely on publicly available information which is considered to be reliable. Vontobel undertakes no obligation to update or revise its forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable Swiss laws or regulations.

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Overview

Key messages

Why we are moving forward How we will deliver Outlook

Questions and answers

December 9, 2019

Key messages

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Seizing the growth opportunity from a position of strength

December 9, 2019

Client-centricbuy-side only

Pure-play investment manager

Active investing and technology as core skills

Asset Management

Wealth Management

Focus		One
Scale
	Vontobel
Growth	Platforms & Services

Digital Investing

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Why we are moving forward

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Anticipating changing client needs and behavior

December 9, 2019

Challenges for	The criteria used to select a financial partner - and
investors	the way clients interact with that partner - are
	changing

Saving is	Off-the	General	Global	From	Client	Anytime	Digital
dead	shelf	public is	pension	products to	journey is	Anywhere	touchpoints
	passive is	holding too	gap is	tailor-made	ever more
	not a	much cash	increasing	solutions	important
	solution

Negative		Expected		> 80%		USD
interest		return		held in		15.8
rates		too low		cash1		trillion2

Clients need ever more expertise and advice to secure	Clients want to be in the driving seat of their financial
their financial future	journey and benefit from outstanding service

1. Source: McKinsey Global Banking Pools 2019
2. Source: G30: Fixing the pension crisis - ensuring lifetime financial security

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Inspiring our clients - the key to our growth

December 9, 2019

80% of companies believe they offer a great	Annual growth rate of believers and achievers
service, but only 8% of their customers agree3

80%

15%

8%

8%

Believers

Achievers

Believers

Achievers

3 Source: Bain Customer-Led Growth Diagnostic Questionnaire: Satmetrix Net Promoter Database

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We are acting from a position of strength…

December 9, 2019

Organic growth and M&A track recordInvestment led - over 60 product awards in 2019

NNM (%)	7
	4
	3

2017 2018 9M19

3rd best selling fund manager1 in 10M19

Strong investment performance

Proven innovator and disruptor

- 89% of funds2 with a 4- or 5- star Morningstar rating

- 83% of funds2 in 1st or 2nd performance quartile for 1 year (90% for 5 years)

• Vontobel Conviction Strategy outperforms funds of peers3 with

similar investment strategy for the period to Oct. 2019

1	Source: Broadridge October 2019, Actively managed European and cross-border fund flows, flows in Morningstar Categories only and excluding Fund of Funds (out of 1482 Managers)
2 Based on AuM
3	Fund performance before management fees of Credit Suisse, Julius Bär, Pictet, Safra Sarasin, Swisscanto, UBP, UBS	9

• built on our long-term perspective, our values and competencies, and our global talent

December 9, 2019

Long-term perspective	Values and Competencies	Global talent with professionals
endorsed by committed family		from 48 different nations
shareholders		working across 23 locations
		Non-Swiss nationals1

19.6%

49.3%

14.3%

10.5%

6.3%

Shares in core pooling agreement

Further shares of family members in the extended pooling agreement

Free-float 49.3%

Pooled shares of Vontobel families total 50.7%

Ownership

Foresight

Tenacity

We are close to our clients

We are specialists

We move fast

We create opportunities

22.6%

35.6%

6.0%

11.6%

12.4% 11.8%

Other EMEA

Asia Pacific

North America

Italy

UK

Germany

1 68% of employees are Swiss nationals

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How we will deliver

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We will deliver by taking the client's view

December 9, 2019

Pure-playbuy-side investment manager

One Vontobel

Driven by clients' needs

Committed to delivering solutions

Focused, first-class specialists working together

Using economies of scope to deliver outstanding quality

Shared goals, flat structures, aligned incentives

Delivering the edge

Exiting ECM/DCM and sell-side businesses

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We think in terms of client needs and deliver best-fit solutions

December 9, 2019

VontobelOneClient Units

Centers of Excellence

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Increased client focus will deliver growth

December 9, 2019

Asset Management

• Complement well-establishedasset-class specialization and the corresponding boutique model with regional sales focus
• Increase local footprint in US, Japan and selected European markets (France)
• Serve Global Bank clients worldwide on a coordinated basis

Wealth Management

Growth drivers

• Extend focus to UHNWIs
• Advise entrepreneurs and other decision-makers from SME segment
• Accelerate hiring through positioning as "employer of choice"
• Leverage expanded network of locations with proven experts in advice and financial planning

Platforms
& Services	−	Become the leading partner for wealth management services in Switzerland, Germany,
		Hong Kong and Singapore
Digital
Investing	−	Launch an explicit challenger unit to make our competencies available to a wider group of

investors via platforms and ecosystems

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Global investment expertise at the core

December 9, 2019

Investment philosophy

• Vontobel is an active asset manager with global reach and a multi- boutique approach
• We invest on the basis of our convictions
• We deliver value through our diverse and highly specialized teams who create strategies and solutions covering equities, fixed-income and multi-asset

Proven multi-boutique approach

Each of our boutiques draws on specialized investment talent, a strong performance culture and robust risk management.

Adding teams to expand offering to all client units

• Outsourced CIO
• Research offering
• Investment solutions and advice for all client units

Around 300 investment managers across global locations

Zurich

London

Hong Kong

Milan

Munich

New York

Selected fields of competences and our success1

Emerging Markets

Among the largest active EM managers in Europe

EM Bond (HC) Funds (#41)

EM Corporate Bond Fund (#31)

EM Equity Funds (#41)

Multi Asset and Income

Active Beta: 199% growth in AuM year to date October

Strategic income: 73% growth in AuM year to date October

ESG

MTX Sustainable Leaders

(16 Awards based on ESG criteria in 2019)

Clean Tech Fund with innovative impact calculation approach

Long track records

5 funds with track records

spanning more than 27 years

1 Promoter Ranking based on flows for respective category; Source: Broadridge October 2019, Actively managed European and cross-border fund flows, flows in Morningstar Categories only and excluding Fund of Funds

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Structured products create broader investment opportunities

December 9, 2019

Structured products meet a key part of client needs

• Income generating products in different market environment
• Customized product creation based on selected underlyings, payoffs and risk tolerances
• Access to underlyings not directly available to private investors
• Actively managed and thematic certificates
• Risk management products

Proven track record in innovation and products

Vontobel's digital channels (CHF bn)

issued						7.5
				6.0	We are
volumeNotional	bn)(CHF			4.6		willing to
	3.4			disrupt
		2.2				- even
						ourselves
		2015	2016	2017	2018	10M19

2

5% of AuM in Germany1

and Switzerland2

1

German Certificate Awards

are invested in structured products

German Certificate Awards

2019/2020

Swiss Derivative Awards

Overall ranking

2019/2020

2019

Best offer for equity and

Top Service Vontobel

Delta one certificates

1 Source: Deutscher Derivate Verband (DDV) and Deutsche Bundesbank

2 Source: Swiss Structured Products Association (SSPA)

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Technology and data as key success factor going forward

December 9, 2019

People

One speed end-to-end thinking

Client journey and intelligence

Ecosystems

Modern Technologies

• Critical mass and depth to attract tech talent
• Continued investments in full stack, artificial intelligence and cloud skills
• Offer work environment that bridges with tech culture
• Technology area shifts to one-speed-delivery organization, interacting with client groups peer-to peer, interlinked by one agile way of working
• 93% of employees are already on one global platform
• Clients get faster and better access to new functionalities on an ongoing basis
• The set-up of dedicated client units and a shared Marketing and Technology & Services function allows us to learn more about our clients and to upgrade our value
  proposition by delivering a relevant contextual and customized client experience
• Starting with the client's perspective, we think and act in ecosystems; for some clients, we are orchestrators; for others, we act as partners or suppliers/enablers
• Big data, artificial intelligence as well as Cloud services are key
• Cloud strategy while fully respecting data protection standards
• First-classcyber security

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Outlook

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Building the basis to go beyond 2020 targets

December 9, 2019

Confirm 2020 targets

Using focus and scale of new way of working for cost management

• Long-termentrepreneurial approach
• Increased client focus
• Deeper and better used capabilities
• Home to the best talents from investments and technology

Growth

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Questions and answers

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