Investor presentation

Market related decline in AuM base amplified by distinctive positioning

Development in assets under management 2017 – H1 2022

AuM temporarily dips to average level of 2019

• Significant decline in AuM of approx. CHF 3.2 bn or 25% in H1
• More than CHF 2.8 bn or almost 90% of the overall decline is attributable to lower market valuations
• The rate hike announced by the SNB on June 16, 2022, briefly lowered the market value of AuM by more than CHF 400 mn
• Despite the considerable market turbulence, the client base has remained extremely stable
• Overall well-balanced asset base, margin remains attractive

Very stable client base – marginal outflow

Change in AuM in H1 2022

Solid client base reflects high level of trust and long-term orientation

• Significant decline in AuM base largely attributable to negative performance
• Negligible asset outflow (<3% of the AuM base) compared to major market impact
• Part of the net outflow stemmed from ongoing product realignment (virtually completed now)

Mixed earnings power in tandem with market trend

Management fees and average AuM, H1 2017 – H1 2022

Business model clearly dependent on general stock market environment

• Linear decline in management fees compared to market developments
• Management fees are calculated based on average AuM, which “smooths out” periods of high volatility
• Earnings power in H1 2022 comparable to level from H2 2020
• Profitability is largely driven by recurring income (management fees)
• Ongoing adjustment and optimization of product mix has stabilized margin quality at a high level

Consolidated results

• Reduction of asset management services is driven by lower AuM; no significant change in performance fees and other net commission income
• The negative stock market trend resulted in unrealized and non-recurring losses of CHF 4.0 mn on investments in own products and a CHF 4.7 mn net loss on financial investments in connection with employee compensation plans
• Absolute decline in total operating income of CHF 26.8 mn is mainly attributable to:
  - Income from core asset management services business declined CHF 16.3 mn (22% vs. prior-year figure) because of lower average level of AuM
  - Change in non-recurring financial income totaling CHF 11.7 million (16% vs prior-year figure)

Operating expenses at a glance

• Bellevue's entrepreneurial compensation model led to lower performance-related compensation in the wake of lower operating income
• Headcount unchanged vs prior-year period
• Other operating expenses stable vs prior-year period
• Slight increase in cost-income ratio (CIR) to 59% due to unrealized losses on financial investments
• The entrepreneurial compensation model smooths out CIR during adverse market conditions and confirms the positive downward trend
• Steady efficiency gains possible thanks to scalable business model