Leonteq : Answers to shareholder's questions

ANSWERS TO SHAREHOLDERS´ QUESTIONS | ANNUAL GENERAL MEETING 2021

Zurich, 31 March 2021

Because the current situation regarding COVID-19 did not permit shareholders to be physically present at the Annual General Meeting, Leonteq has given its shareholders the opportunity to address questions regarding the agenda items to the Board of Directors ahead of the General Meeting. Leonteq has received several questions and is publishing today the answers in aggregated form.

AGENDA ITEM 1: ANNUAL REPORT 2020

Sustainability initiative: expected outcomes for 2021

Leonteq is currently performing a materiality assessment through direct engagements with internal and external stakeholders. At the same time, we are analysing our sustainability efforts within our own operations and processes and are identifying how Leonteq can support its clients and partners in investing responsibly.

The Board of Directors recognises the growing importance of ESG, is committed to this new initiative and sees the potential to encourage and implement sustainable investing opportunities for its clients and partners. As a provider for investment solutions, we are ambitious to become a leading ESG provider for structured products. In this context we are currently working on a number of innovative solutions, some of which will be offered to our clients in due course.

Furthermore, all these efforts will serve as a basis in preparation of a sustainability report which we intend to publish next year.

Business strategy: drivers for platform scalability

The volume of transactions executed on Leonteq's platform has grown significantly in the past few years. As Leonteq continues to scale its hedging, issuance and distribution capabilities, it´s platform scalability is also increasing. The platform enables rapid and low-cost securitisation through automation by continuously upgrading its innovative technology and using the latest services that are available in the market for its infrastructure and development.

To this end, Leonteq has, among other things, completed a major infrastructure upgrade and migration of its core technology system and has also entered into a collaboration with Google Cloud to augment its distributed (grid) computation capacities by using infrastructure from the Google Cloud Platform (located in Switzerland).

Balance sheet light business: update on SHIP and third-party issuers

Leonteq's Smart Hedging Issuance Platform (SHIP) became fully operational in July 2020 and is designed to reduce Leonteq's hedging exposure whilst providing its clients and issuance partners the choice of additional external hedging counterparties. To date, seven leading investment banks are connected to SHIP, of which six are actively quoting and executing trades. Leonteq has also extended its capabilities to enter into back-to-back hedging transactions on a bespoke basis. In addition, it has increased its offering of products manufactured outside the Leonteq platform by providing access to a total of 20 third- party issuers . In this context, Leonteq has also established direct connectivity between its digital marketplace and Barclay's electronic trading platform as well as SG Markets, the trading platform of Societe Generale.

LEONTEQ AG

Europaallee 39 | CH-8004 Zurich | Phone [phone] | [e-mail] | www.leonteq.com

ANSWERS TO SHAREHOLDERS' QUESTIONS | ANNUAL GENERAL MEETING 2021 2

The aggregate amount of turnover of structured products generated with the above-mentioned initiatives (i.e. SHIP, back-to-back hedging transactions and products issued by third-parties) is referred to as balance sheet light turnover. In 2020, a total notional volume of approximately CHF 1.9 billion, or approximately 7% of total turnover, was directly hedged by an external counterparty, compared to CHF 0.7 billion, or approximately 2%, in the prior-year period.

We see the overall positive trend for our balance sheet light business to continue in 2021 and would expect to reach double digit turnover contribution in 2021.

Asset management-like business: background on this newly emerging business

Leonteq made good progress in broadening its product offering in 2020 by expanding its asset management-like business and enhancing its fund derivative and quantitative investment strategies (QIS) capabilities. Leonteq continued to develop its business with actively managed certificates (AMC) by expanding its product range and underlying universe . Leonteq also significantly expanded its efforts in offering tracker certificates on cryptocurrencies as underlyings which resulted in a 482% increase in outstanding volumes to CHF 155 million at end-2020. In addition, Leonteq launched new exchange-traded tracker certificates in collaboration with three leading business news portals (Finanz und Wirtschaft, The Market, cash) and further entered into a new collaboration with Morningstar for the launch of three tracker certificates on Morningstar systematic indices.

Similar to features of asset management products, AMCs and tracker certificates are generally open-end products with an annual fee on total outstanding volumes. Leonteq's revenues in this asset management- like business increased by 43% to CHF 33 million, or 10% of the Group's fee income in 2020.

Revenues: development of economic revenues and operating income since 2018

Leonteq performs daily a profit and loss analysis and reports economic revenues on a consolidated as well as an individual trading book level to senior management. Economic revenues consist of sales and trading income earned and are considered as recognised at the trade date without applying IFRS revenue recognition rules. Economic revenues do not include certain other income components such as partner project cost reimbursements. Since going public in 2012, Leonteq has transparently disclosed a weekly economic revenue chart, enabling investors to assess the short-term business development on a weekly basis. When analysing the financial performance on a yearly basis, Leonteq is directing its investors to consider total operating income as one of the relevant metric. Further information and detailed discussion of Leonteq's financial performance can be found on pages 23 to 27 in the Annual Report 2020 and on pages 81 to 86 in the Annual report 2018.

Turnover with Leonteq products: impact of capital requirements

Platform assets in products issued by Leonteq reached a record of CHF 4.9 billion as of 31 December 2020, representing an increase of 20% compared to end-2019. Turnover generated from own issued products increased by 1% to CHF 11.6 billion in 2020 while margins increased significantly by 32 basis points to 116 basis points.

Leonteq's shareholders' equity totalled CHF 647.5 million as of 31 December 2020 compared to CHF 662.5 million at end-2019. Under the new regulatory framework for securities firms, Leonteq significantly exceeded its regulatory capital requirement of CHF 20 million as of 31 December 2020.

LEONTEQ AG

Europaallee 39 | CH-8004 Zurich | Phone [phone] | [e-mail] | www.leonteq.com

ANSWERS TO SHAREHOLDERS' QUESTIONS | ANNUAL GENERAL MEETING 2021 3

Turnover with platform partner products: background on development in 2020

In Leonteq's business with platform partners, margins improved to 120 basis points from 71 basis points resulting from a management decision to limit activities in the high-turnoverlow-margin flow business during the Covid-19 period. At the same time, outstanding volumes in platform partners' products decreased by 13% to CHF 9.2 billion at end-2020, and turnover generated with platform partners decreased to CHF 14.8 billion in 2020 compared to the very strong performance of CHF 18.8 billion in the prior-year period.

Leonteq continues to further expand and streamline its white-labelling issuance model. In 2020, Leonteq enhanced cooperation with its existing platform partners and held discussions and negotiations with new issuers. It started collaborations with new white-labelling issuance partners Basler Kantonalbank, Banque Internationale à Luxembourg and Rand Merchant Bank and signed an agreement with PostFinance relating to their cooperation in the field of structured investment products. Leonteq is currently working with a total of 10 white-labelling issuers.

We expect to launch first products issued by Basler Kantonalbank, Banque International à Luxembourg and Rand Merchant Bank in the course of 2021.

Change in revenue recognition: background and impact

At the beginning of 2020, Leonteq reviewed the estimates inherent in the revenue recognition model for fee income in the Investment Solutions division. This review was done to take account of the increasingly competitive market environment we have seen in recent years. The revision of estimates resulted in a reallocation of fees and an adjustment of the deferral period to 9 months (from 12 months). Leonteq prospectively applied the change in estimates as of 1 January 2020. The adjustment of the deferral period led to an additional CHF 5.1 million of fee income for the first half of 2020 (but had no impact for the full- year 2020). Overall, the balance of deferred fees reduced from CHF 106.9 million at end-2019 to CHF 75.1 million which positively impacted the Group's net fee income.

Own credit spread: details and background about changes in 2020

The Group determined its own credit spread based on a model using observable market inputs such as market capitalisation, debt and product type-specific adjustments. Based on periodic reassessments and given the current market developments, management decided to adjust the Group's own credit spread in March, August and December 2020. Leonteq does not publicly disclose the level of credit spreads applied.

In line with the applicable accounting standard, changes in fair value related to own credit risk for other financial liabilities designated at fair value through profit or loss are recognised in other comprehensive income. The changes in own credit risk recognised in other comprehensive income are subsequently transferred within equity to retained earnings in the same period as the sales fee income is deemed earned.

Group net profit: adjusted for one-off and other effects (e.g. hedging related losses, change in revenue recognition, etc.)

Leonteq prepares its audited financial statements in accordance with the requirements of the International Financial Reporting Standard (IFRS). Leonteq's management uses these financials reported under IFRS when analysing the Group's performance. For this reason, Leonteq does not use Alternative Performance Measures (APMs) to the extent that it reports adjusted figures (e.g. adjusted net profits). However, the Group provides detailed discussion and disclosures around significant events impacting its financial results, which allows investors and analysts to make their own adjusted calculation if needed. In addition, Leonteq uses APMs which provide investors with additional information to assess Leonteq's business performance. For further details about the APMs used please refer to page 7 of the Annual Report 2020.

LEONTEQ AG

Europaallee 39 | CH-8004 Zurich | Phone [phone] | [e-mail] | www.leonteq.com

ANSWERS TO SHAREHOLDERS' QUESTIONS | ANNUAL GENERAL MEETING 2021 4

Employee compensation: changes to compensation framework and compensation levels in 2020

Leonteq wants to attract and retain talented employees who are essential for the Group's future success. Leonteq is committed to fair, balanced and performance-oriented compensation practices that align long- term employee and shareholder interests and that incentivise appropriate risk-taking while fostering adequate risk awareness.

Fixed compensation includes the base salary, which reflects the seniority and level of experience of the recipient, and the skills required to fulfil a specific function in a particular division and region, as well as market practice. Fixed compensation increased in 2020 by CHF 5.7 million to CHF 62.9 million mainly driven by the increase in average full time equivalents from 490 to 512 FTEs.

Variable compensation is awarded annually based on contractual agreements and/or at the discretion of the Group. It varies, depending on the overall performance of Leonteq, as well as divisional and individual performance, measured on the basis of pre-defined,strategy-oriented quantitative and qualitative KPIs. Contractual agreements mainly apply to the variable compensation of sales employees and are linked to production. Adjustments are made to reflect the Group's trading result, the Group's net profit and the sales organisation's direct and indirect costs of production. Variable committed compensation decreased to CHF 33.0 million in 2020 (of which CHF 14.7 million are recognised in future periods) compared to CHF

37.8 million in 2019 (of which CHF 12.8 million are recognised future periods). This decrease in variable committed compensation is predominantly due to a lower group net profit year-on-year.

The Board of Directors launched an employee long-term incentive plan ('ELTIP') in 2020. The plan is designed to align the objectives of key employees of Leonteq with the interests of shareholders. Additionally, it is intended to serve as retention tool to commit such key employees to the Group. Combined with talent development measures, it should secure the next generation of Leonteq's leaders. The plan comprises RSUs only, is fully deferred and is subject to cliff-vesting after a period of three and a half up to five years. The expenses related to the ELTIP will be recognised over the vesting period of three and a half or five years, respectively.

Capital ratios: background on new regulatory framework

The Swiss Financial Institutions Act (FinIA) and the Financial Institutions Ordinance (FinIO) entered into force on 1 January 2020. FinIA regulates the licensing requirements and further organisational rules for certain financial institutions, including securities firms such as Leonteq. The new regime distinguishes between account-holding and non-account-holding securities firms for the application of capital requirements. Securities firms that do not hold accounts for clients are no longer subject to the Capital Adequacy Ordinance but must permanently hold capital of at least one quarter of the fixed costs of the last annual financial statement, up to a maximum of CHF 20 million.

Leonteq does not hold client accounts and is thus no longer subject to the requirements of the Capital Adequacy Ordinance. Under the new regulatory framework for securities firms, Leonteq significantly exceeded its regulatory capital requirement of CHF 20 million as of 31 December 2020 with shareholder's equity totalling CHF 647.5 million as of 31 December 2020 (31 December 2019: CHF 662.5 million). Together with deferred fee income of CHF 75.1 million, Leonteq maintained its strong capital base, which amounted to CHF 722.6 million as of 31 December 2020.

Leonteq engages in a robust capital planning process based on a defined set of stress scenarios in order to ensure that shareholders' equity is sufficient to cover potential losses in the event of severe adverse market shocks or other events. The Group's defined stress scenarios include the simulated combined effect of a variety of market and business events, including potential losses related to equity market shocks, interest rate changes, foreign exchange rate movements, credit losses and operational losses, as well as adverse changes to the business environment. These potential losses are then compared to the Group's shareholders' equity in order to ensure that a significant buffer is maintained in each defined scenario.

LEONTEQ AG

Europaallee 39 | CH-8004 Zurich | Phone [phone] | [e-mail] | www.leonteq.com

ANSWERS TO SHAREHOLDERS' QUESTIONS | ANNUAL GENERAL MEETING 2021 5

AGENDA ITEM 3: ALLOCATION AND APPROPRIATION OF RETAINED EARNINGS AND APPROPRITATION OF RESERVES FROM CAPITAL CONTRIBUTIONS

Dividend proposal: background for 50% increase in distribution to shareholders

In line with Leonteq's conservative dividend policy, the Board of Directors proposed a shareholder distribution of CHF 0.75 per share for the financial year 2020 (up 50% from CHF 0.50 per share for 2019) to the Annual General Meeting on 31 March 2021, which is to be paid in equal amounts out of retained earnings and capital contribution reserves.

The 50% increase in shareholder distribution underscores our confidence in the company's ability to generate attractive and sustainable returns as our investments in key strategic initiatives will start to pay off.

Progressive dividend policy: driving factors for a potential increase in pay-outs to shareholders

Following record revenues in the fourth quarter of 2020, Leonteq had a strong start into 2021, will continue to invest in its key initiatives and expects total operating expenses of approximately CHF 210 million for the full-year 2021. Leonteq is further targeting for its capital base to reach the CHF 800 million area by end-2021 (CHF 723 million at end-2020), after which Leonteq intends to transition to a progressive dividend policy.

For the financial year 2021, Leonteq expects to propose a shareholder distribution of more than CHF 0.75 per share. From the financial year 2022 onwards, a payout ratio of more than 50% of net profits is foreseen.

In 2020, we have demonstrated our ability to withstand one of the most severe capital market shocks in this century and have returned to the performance and profitability path we have built over the past few years. We have set a clear target for our capital base for 2021 and are providing transparency about our ambition to transition towards a progressive dividend policy thus underlining our commitment to create sustainable value for our shareholders and all stakeholders.

LEONTEQ AG

Europaallee 39 | CH-8004 Zurich | Phone [phone] | [e-mail] | www.leonteq.com