Bellevue reports sharply lower net profit of CHF 8 mn for the first half due to falling markets – continued expansion of Private Markets as a source of future income

Bellevue Group AG / Key word(s): Half Year Results Bellevue reports sharply lower net profit of CHF 8 mn for the first half due to falling markets – continued expansion of Private Markets as a source of future income 27-Jul-2023 / 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. Ad hoc announcement pursuant to Art. 53 of the SWX Listing Rules

Zurich, July 27, 2023

Half-year results for 2023

Bellevue reports sharply lower net profit of CHF 8 mn for the first half due to falling markets – continued expansion of Private Markets as a source of future income

• The prolonged very difficult environment for small and mid-cap growth stocks in the healthcare sector continues to curb Bellevue’s operating results
• Primarily market-induced contraction in assets under management of 14% to CHF 8.1 bn
• Operating income down 12% to CHF 41.3 mn due to lower average assets under management – targeted spending on investment expertise and infrastructure leads to 5% increase in costs – cost/income ratio climbs to 70.1%
• Group net profit down 44% year-on-year to CHF 8 mn – return on equity of 14.8%
• Growing product range of private market investments – proof of concept demonstrated, also thanks to first exit – attractive diversification potential consisting primarily of performance-based income (carry)
• Business model with tangible growth drivers once markets recover and interest rates stabilize

André Rüegg, CEO of Bellevue, on the first-half results for 2023: “Although global financial markets were more constructive than expected during the first six months of the current year, the market segments relevant to Bellevue have still not shown any signs of a recovery. Small- and mid-cap growth stocks within the healthcare sector continue to underperform. In view of the weak performance, demand for specific healthcare investment strategies has remained soft. This situation has clearly put a damper on our operating results. Our systematic efforts to expand our private markets offering have been successful. We are establishing an increasingly distinct profile here and have demonstrated proof of concept: new ideas are being successfully sourced, our active equity investment activities are creating value and more exits are on the horizon. Our private markets activities will help us to grow and diversify our income streams. Bellevue’s business model as a specialist asset manager offers promising growth potential for generating sustained value over the long term. Healthcare remains a mega trend and a structural growth market with myriad investment opportunities. Our investment expertise in biotechnology and other segments is widely recognized and our international client base is very stable. We are well positioned to benefit in real time from better market conditions. However, it does not seem realistic to expect a strong recovery in our specific investment areas and the resumption of our historical growth dynamics before 2024/25.”