PRESS RELEASE | LEONTEQ REVISES ITS OUTLOOK AND PROVIDES BUSINESS UPDATE

Zurich, 1 December 2023 | Ad hoc announcement pursuant to Art. 53 LR

Leonteq AG (SIX: LEON) today revises its outlook for the full year of 2023 and provides a business update for the first eleven months of 2023.

• Group net profit in the range of CHF 10-20 million expected for the full-year 2023
• Solid client franchise with growth in issued products (+34%) and client transactions (+12%)
• Turnover and net fee income relatively stable year-on-year due to lower average ticket sizes
• Net trading result positive but significantly lower year-on-year mainly due to decrease in market volatility
• Above average investments in key strategic initiatives impacting cost base as communicated

Leonteq expects to report full-year 2023 group net profit in the range of CHF 10-20 million (previous guidance: profit before taxes of CHF 40-70 million) which takes into account positive tax effects and is a result of the following factors.

Despite a challenging market environment in the first eleven months of 2023, Leonteq’s client franchise remained solid with a 34% growth in issued products and a 12% increase in client transactions compared to the prior year period. On the back of lower average ticket sizes, platform turnover and net fee income were relatively stable year-on-year. Leonteq also defended its strong position in the Swiss market and expanded its market share in SIX-listed structured products to 11% compared to 8% in the prior-year period.

The first eleven months of 2023 were further characterised by inflationary pressure, increased geopolitical uncertainties and a significant reduction in market volatility which reached an all-year low in November 2023. Against this backdrop, Leonteq recorded a normalised net trading result with positive contributions from its hedging and treasury activities in the amount of approximately CHF 30 million. This compared to an exceptionally strong performance in the prior-year period where the net trading result significantly overcompensated for reduced client demand.

As previously communicated, Leonteq increased its annual investments in key growth initiatives by around 50% to approximately CHF 30 million in 2023. In particular, it continued to significantly invest in its retail flow business initiative as well as in its digital client solutions offered through LynQs.

Furthermore, under the share buyback programme launched on 3 April 2023, 394,881 shares were purchased to date with a total buyback value of CHF 16.5 million, or 92% of the programme size. The programme is expected to be completed by end-2023.

Leonteq will publish its full-year 2023 results on 8 February 2024.

CONTACT
Media Relations 
+41 58 800 1844
media@leonteq.com

Investor Relations 
+41 58 800 1855
investorrelations@leonteq.com

LEONTEQ

Leonteq is a Swiss fintech company with a leading marketplace for structured investment solutions. Based on proprietary modern technology, the company offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product classes. Leonteq acts as both a direct issuer of its own products and as a partner to other financial institutions. Leonteq further enables life insurance companies and banks to produce capital-efficient, unit-linked pension products with guarantees. The company has offices and subsidiaries in 13 countries across Europe, Middle East and Asia. Leonteq AG has a BBB credit-rating by Fitch Ratings, was assigned with an AA ESG-rating by MSCI and is listed on the SIX Swiss Exchange (SIX: LEON).

www.leonteq.com

DISCLAIMER

This press release issued by Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This press release and all materials, documents and information used therein or distributed in the context of this press release do not constitute or form part of and should not be construed as, an offer (public or private) to sell or a solicitation of offers (public or private) to purchase or subscribe for shares or other securities of the Company or any of its affiliates or subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction, and may not be used for such purposes. Copies of this press release may not be made available (directly or indirectly) to any person in relation to whom the making available of the press release is restricted or prohibited by law or sent to countries, or distributed in or from countries, to, in or from which this is restricted or prohibited by law.

This press release may contain specific forward-looking statements, e.g. statements including terms like “believe“, “assume“, “expect“, "target" “forecast“, “project“, “may“, “could“, “might“, “will“ or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the Company or any of its affiliates or subsidiaries and those explicitly or implicitly presumed in these statements. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends, (2) movements in securities markets, exchange rates and interest rates and (3) other risks and uncertainties inherent in our business. Against the background of these uncertainties, you should not rely on forward-looking statements. Neither the Company nor any of its affiliates or subsidiaries or their respective bodies, executives, employees and advisers assume any responsibility to prepare or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this press release or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation.