EQS Group-Ad-hoc: Leonteq AG / Key word(s): Half Year Results 
Press release: Leonteq publishes half-year 2021 results 
22-Jul-2021 / 07:00 CET/CEST 
Release of an ad hoc announcement pursuant to Art. 53 LR 
The issuer is solely responsible for the content of this announcement. 
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PRESS RELEASE | LEONTEQ PUBLISHES HALF-YEAR 2021 RESULTS 
Zurich, 22 July 2021 | Ad hoc announcement pursuant to Art. 53 LR 
Leonteq AG (SIX: LEON) achieved record revenues and profits in the first half of 2021, resulting from strong client 
activity, disciplined risk management and the focused execution of its strategy. 
Financial highlights in H1 2021 
  . Group net profit of CHF 74.4 million (H1 2020: CHF 5.5 million); earnings per share of CHF 4.04 (H1 2020: CHF 0.29) 
  . Total operating income of CHF 205.8 million, up 99% year-on-year, driven by strong net fee income of CHF 170.0 
    million and positive net trading result of CHF 35.4 million 
  . Capital target reached six months ahead of guidance, with the capital base totalling CHF 800.2 million at the end 
    of June 2021 
Further improvement in business diversification and revenue quality in H1 2021 
  . Balance sheet light turnover increased by 67% to CHF 1.5 billion, corresponding to approximately 9% of total 
    turnover (up 3 percentage points) 
  . Total turnover grew by 3% to CHF 15.9 billion, driven by 26% increase in turnover in Leonteq's own products to CHF 
    7.8 billion 
  . Asset management-like revenues increased by 56% to CHF 31.2 million 
  . Revenues from fund derivatives rose to CHF 20.6 million, a ten-fold increase year-on-year 
  . Revenues from products with crypto assets as underlyings grew to CHF 9.2 million, representing a fifteen-fold 
    increase year-on-year 
Continued focused execution of strategy 
  . LynQs developing into a one-stop-shop for investment solutions; click 'n' trade platform launched and more than 40 
    clients and partners onboarded on white-labelled platforms 
  . White-labelling set-up with Basler Kantonalbank and Banque Internationale à Luxembourg completed; turnover of more 
    than CHF 350 million generated in Q2 2021 
Outlook 
  . Following record results in H1 2021, performance expected to normalise in H2 2021 
  . Group net profit of more than CHF 100 million targeted for the full-year 2021 
 
Income statement                                         Change     Change 
CHF million                  H1 2021 H2 2020 H1 2020 vs H1 2020 vs H2 2020 
Total operating income         205.8   131.0   103.5        99%        57% 
of which net fee income        170.0   121.6   213.0      (20%)        40% 
of which net trading results    35.4     8.7 (107.1)         NA       307% 
Total operating expenses     (125.2)  (99.2)  (98.7)        27%        26% 
Profit before taxes             80.6    31.8     4.8         NA       153% 
Group net profit                74.4    34.4     5.5         NA       116%

STRONG PERFORMANCE IN THE FIRST HALF OF 2021 Following a strong start to the year, Leonteq continued to register high levels of client activity in a favourable market environment during the first six months of 2021. It saw strong client demand across its entire range of innovative investment solutions and further diversified its revenue streams across products, underlyings and issuers. In particular, Leonteq grew its asset management-like revenues and attracted significant inflows into products with fund derivatives and cryptocurrencies as underlyings. The company also saw volumes and revenues in own issued products reach record levels, and it generated a notable increase in large ticket transactions during the first half of 2021. This strong performance is also reflected by a 24% increase in client transactions to a total of 142,452 transactions and a 28% increase in issued products to 20,610 products in the first half of 2021.

As a result, Leonteq generated strong net fee income of CHF 170.0 million in the first half of 2021, following the exceptionally high figure of CHF 213.0 million in the prior-year period, which was characterised by Covid-19-related market developments. At the same time, Leonteq continued to focus on disciplined risk management and recorded a positive net trading result of CHF 35.4 million compared to CHF -107.1 million in the prior-year period, which was primarily affected by a significant increase in hedging-related costs and one-off hedging-related losses. Leonteq's total operating income grew by 99% to CHF 205.8 million in the first half of 2021, driven by an exceptional first quarter of 2021 and a strong second quarter of 2021.

Total operating expenses rose to CHF 125.2 million in the first half of 2021, an increase of 27% year-on-year, reflecting planned investments in key strategic initiatives, a performance-driven increase in variable costs and additional provisions for legal cases.

In line with the guidance provided on 15 June 2021, Leonteq reported record Group net profit of CHF 74.4 million in the first half of 2021, compared to CHF 5.5 million in the prior-year period. Shareholders' equity amounted to CHF 721.4 million as of 30 June 2021, compared to CHF 647.5 million as of 31 December 2020. Together with deferred fee income of CHF 78.8 million, Leonteq's capital base totalled CHF 800.2 million as of 30 June 2021 and the company thus reached its capital base target (in the area of CHF 800 million) six months ahead of the guidance provided on 11 February 2021.

Lukas Ruflin, Chief Executive Officer of Leonteq, stated: "Our first-half 2021 results demonstrate the good financial and strategic progress that Leonteq has made across many fronts: We achieved strong fee income, generated record net profit for the period, reached our target capital base ahead of schedule and are strongly capitalised. We continued to diversify our business across products, issuers and underlyings and have improved the quality of our revenues. At the same time, we further innovated our digital offering for our partners and clients and expanded our ecosystem for investment solutions."

LEONTEQ PRODUCTS ACHIEVE NEW RECORD VOLUMES In Leonteq's Investment Solutions business line, platform assets in Leonteq's own products totalled CHF 5.8 billion as of 30 June 2021, an increase of 18% compared to end-2020. Turnover in own issued products increased by 26% to CHF 7.8 billion in the first half of 2021 (up 44% from H2 2020) while margins remained at elevated levels of 111 basis points, compared to 127 basis points in the prior-year period (104 basis points in H2 2020).

In its business with platform partners, outstanding volumes in platform partners' products increased by 4% to CHF 9.6 billion as of end-June 2021, and turnover generated with platform partners decreased to CHF 8.1 billion in the first half of 2021 compared to the very strong performance of CHF 9.2 billion in the prior-year period (up 45% from H2 2020). Margins continued to normalise to 96 basis points compared to an exceptionally high level of 130 basis points in the first half of 2020 (104 basis points in H2 2020).

The Insurance & Wealth Planning Solutions business line saw the number of outstanding policies serviced on the platform increase by 2% to 52,417 policies as of 30 June 2021. Total operating income decreased to CHF 8.8 million in the first half of 2021 from CHF 24.7 million in the prior-year period (flat vs H2 2020), primarily reflecting the continued challenging long-term interest rate environment and pandemic-related effects impacting the in-person sales activities of third-party distribution channels. STRONG HOME MARKET AND INCREASED FOOTPRINT IN EUROPE AND THE MIDDLE EAST Leonteq maintained its strong position in its home market of Switzerland. Together with its platform partners, Leonteq is the leading issuer of SIX-listed yield enhancement products with a market share of 28%, and it ranks as the number three issuer of total SIX-listed structured products with a market share of 16%. Leonteq also expanded its range of digitally tradable investment products in Switzerland by listing products on BX Swiss. Net fee income in Switzerland was CHF 60.0 million in the first half of 2021, down 27% compared to the prior-year period (up 29% from H2 2020).

Operations in Europe generated net fee income of CHF 85.8 million, representing the second-strongest result in Leonteq's history. Compared to the very strong result for the prior-year period, net fee income decreased by 24% in the first half of 2021 (up 43% from H2 2020). Leonteq made particularly good progress in Italy, where it established a presence in the fourth quarter of 2020, and it strengthened its sales coverage for the Nordic region.

In Asia (including the Middle East), Leonteq implemented key initiatives by increasing the range of products issued by Standard Chartered and improving its offering of actively managed certificates (AMCs) for Asian clients. Leonteq also expanded its regional footprint by opening a new office in Dubai. As a result, the Asia region (including the Middle East) saw a 36% increase in net fee income year-on-year to CHF 24.2 million (up 58% from H2 2020).

Leonteq also made further progress in establishing a service centre in Portugal and currently has 36 employees working in Lisbon. The company expects to receive regulatory approvals and open its own office in the second half of 2021.

FOCUSED EXECUTION OF STRATEGY In the first half of 2021, Leonteq continued to make significant strategic progress in implementing the priorities defined in mid-2018 to enhance scalability, growth and investment experience as the targeted measures taken in recent years have begun to bear fruit. Through the disciplined execution of its strategic initiatives, Leonteq has further strengthened its position as a leading service and technology provider and significantly broadened its ecosystem for investment solutions. . LynQs: Leonteq further advanced the functionalities and features of its one-stop-shop for structured investment

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