Investor presentation

Contraction in AuM base accentuated by positioning

Development in assets under management 2018 – H1 2023

Sustainable growth path until 2021 interrupted due to adverse market conditions since H1 2022

• Renewed decline in AuM of approx. CHF 1.3 bn or 14% in the first half of 2023
• More than CHF 0.8 bn or almost two-thirds of the overall decline attributable to lower market valuations
• Situation with interest rates and inflation remains unfavorable for our product offering
• Despite considerable market distortions, customer base remains stable so far, first signs of recovery in the healthcare sector are visible
• Well-diversified AuM base with steadily attractive margins

Stable client base – marginal outflows

Development of AuM base in H1 2023

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

• Sharp decline in AuM base largely attributable to negative performance
• Sustained tension in the healthcare sector has triggered substantial outflows – but attractive entry points have also led to new inflows
• Other business areas remains stable despite difficult market environment
• Net money outflow comparatively low given adverse market conditions in our specific investment areas (<5% of AuM base)

Earnings power in step with AuM base

Development of income from asset management activities,
2018 – H1 2023

Traceable period-on-period decline in profitability of 20%, in step with ∅ AuM base

• Earnings power down to 2017/2018 levels
• High percentage of recurring revenues reflects high-quality AuM base at stable margins
• Contribution from transaction at low level, but solid pipeline provides room to the upside
• Well developed and mature portfolio of private equity direct investments creates potential for performance fees on exit (carried income)

Consolidated results

• Reduction in income from AM services attributable to lower AuM
• Unrealized loss of CHF 0.5 mn on investments in proprietary products and CHF 2.0 mn on financial investments substantially lower compared to previous period
• Deviation in total income of CHF 5.5 mn in absolute terms driven by:
  - Decline of management of CHF 10.8 mn due to lower average level of AuM (with unchanged margins)
  - Reduction of unrealized loss from financial investments of CHF 6.3 mn compared to previous period
  - Decrease in other income due to currency translation losses and lower dividend income

Operating expenses

• Entrepreneurial compensation model leads to significantly lower compensation as a result of lower earnings
• This reduction was offset by an increase in costs for share programe plans and by deferred compensation payments from previous year (service conditions)
• Investments in new talent lead to y-o-y increase in fix personnel expenses
• Only slight increase in non-personnel expenses despite substantial investments in technology and infrastructure, thanks to other cost savings
• Temporary increase in cost/income ratio (CIR) to 70% due to lower earnings base
• Entrepreneurial compensation model helps to smooth out the CIR during difficult periods
• Ongoing increase in efficiency possible thanks to scalable business model