Cembra Money Bank : Business Review 2023

Key facts & figures

CHF

1,960,800,000

was the market capitalisation of Cembra

at the end of 2023

1,027,000

number of credit cards issued

by Cembra

3,700

car dealers across Switzerland

are served by our

26 sales area managers

>900

employees from more than 40 different

countries work for Cembra

>2,000,0004.00

Products

We offer a broad range of financing solutions in Switzerland:

Personal loans: Cembra is a leading provider in the highly competitive personal loans market. We are offering a personalised premium service and our products are available through our branches across Switzerland, through independent intermediaries and online.

Auto loans and leasing: Cembra is a large brand-independentauto loans and leasing provider in Switzerland. Our products are sold via a distribution network of around 3,700 car dealers, who act as intermediaries. A dedicated sales force of 26 field agents, together with the employees at our four service centres, provide a personalised, flexible and efficient service.

Credit cards: We are one of the leading credit card providers in Switzerland, with about

1 million cards issued. We offer a range of credit cards through partner programmes with Conforama, FNAC, IKEA, LIPO, SPAR, TCS, as well as our own credit cards. The cards offer a range of attractive features, such as loyalty points, cash back, personalised designs

and no annual fees.

Buy now pay later: Through CembraPay we offer invoice financing services and flexible payment options for both online and point-of-salechannels.

Insurance products: We provide access

to various insurance products. Alongside our personal loans and auto loans and leasing, insurance provides financial protection in case of involuntary unemployment, accident, illness or disability. We also intermediate travel and card protection insurance for our credit card customers as well as car insurance.

Savings and deposits: We provide savings and deposit products at competitive interest rates for both retail customers and institutional clients.

History

The roots of Cembra date back to 1912, when Banque commerciale et agricole E. Uldry & Cie. was founded in Fribourg. This bank later became Bank Prokredit. In 1999, GE Capital merged Bank Prokredit with Bank Aufina, which it had acquired in 1997. In October 2013, the Bank separated from its parent company GE, went public and was rebranded as Cembra Money Bank AG. In 2020, we changed our brand name to Cembra. We strengthened our market position by several acquisitions, including the purchase of the consumer finance provider cashgate in 2019.

The Bank is named after the Swiss cembra pine (Pinus cembra), a sturdy and resilient tree with strong roots. It symbolises our Bank's strength and our origin.

2013

Cembra has been listed as an independent Swiss bank on the SIX Swiss Exchange since 2013.

"Our new structure will help us to serve our customers and partners even more effectively."

Holger Laubenthal, CEO

Anniversary year

In 2023, we celebrated a major milestone: ten years of Cembra as an independent bank, but with roots going back over a century.

Our decades-long experience and the trust our customers place in us attest to the quality of our products and services. At the same time, it obliges us to constantly improve how we serve our customers.

Our anniversary was an opportunity for us to refresh our brand so that it better reflects our strategic transformation. Our new brand positioning is fresher, lighter and in line with our commitment to being approachable, easily accessible and transparent.

Transformation

We're making good progress in our strategic transformation. We want to be where our customers need us - whether that's online or offline, for example in a Cembra branch or when they are in the middle of an online purchase. As part of our efforts to get closer to our customers, we're expanding our product

offering and continuously improving the customer journey and overall experience.

Achievements

We're pleased with our solid results for 2023, which reflect our continued profitable growth. This past year, we launched CembraPay to create a leading Swiss provider of invoice payment solutions. We are excited about our collaboration with TWINT and that we grew our portfolio of co-branding cards . The launch

of our new IT platform for our leasing business was successful and represented a key milestone in our ongoing transformation. I'm very happy with the dedicated work of our teams.

Equally noteworthy - and something that's very important to me - was the renewed recognition from the Great Place to Work organi- sation. That kind of honour makes us proud, as we want to be an attractive workplace, where people can give their best and enjoy spending time with their colleagues.

Opportunities

As per January 2024, we simplified our organisational structure. We bundled our core products into two business lines: Lending, which covers auto and consumer loans, and Pay- ments, which combines our credit cards and buy now pay later businesses. This new lean and efficient structure will help us to serve our customers and partners even more efficiently.

In Payments, we now concentrate on growth, following the successful migration to our new in-house credit card portfolio Certo!. The credit cards and buy now pay later businesses complement each other effectively. We've doubled our customer base thanks to the buy now pay later business, and we now aim to serve consumers more comprehensively with our product range.

In our auto business, we will migrate all our partners onto the new leasing platform over

the course of the year. We're excited about the simplification and service improvements this new platform will bring for our partners.

Customers

Our customers are the centre of our business. Their needs are constantly evolving, and we will continue to develop our portfolio and services accordingly. We know we don't always get everything right, but what's important to me is that we listen to our customers, engage with them, respond promptly, and continuously strive for improvement.

Challenges

We operate in a volatile environment. Fortu- nately, the Swiss market offers a certain amount of stability compared to other regions. One major challenge we faced last year was the rapid rise in interest rates, but we navigated that successfully by introducing appropriate pricing measures. Our business environment is very dynamic and competitive and consumer needs are always changing. But we see the positive side: it keeps us on our toes.

Goals

We have a clear strategy for the period from 2022 to 2026 and are focused on its execution. Our goal is to expand our market presence and leverage our wide range of unique prod-

ucts to serve customers comprehensively and right where their needs are. We also remain focused on sustainability and are proud of the recognition we've received from leading ESG rating agencies.

We will be a reliable bank for our partners and customers, an attractive employer, and an advantageous investment for our shareholders.

"We are pleased with our solid results for 2023, which reflect our continued profitable growth."

Holger Laubenthal, CEO

In 2023, we celebrated our 10th anniversary as Cembra. We took that as an opportunity to refresh our brand, as reflected in this Business Review.

On 30 October 2013, the former GE Money Bank successfully went public under the new name Cembra. However, our history goes back much further than that. In its more than 100-year journey, our bank has reinvented itself several times, particularly over the last few years with our current strategic and cultural transformation. This strength and resilience is reflected in our name, which comes from the Latin for the Swiss stone pine Pinus cembra, a robust and resilient tree. It symbolises our Bank and its origins.

Today, ten years after our repositioning as Cembra, we are proud to be one of the leading Swiss providers of financial solutions and services. We owe this to our customers, shareholders, partners and employees, who have come with us on this exciting journey and who show their trust and commitment every day.

Our employees are the cornerstone of our bank and the key to our success. Meet some of our colleagues as they share their thoughts on the following pages.

3

Christophe Busson

4

1

Thomas Uhlmann

Governance Specialist with Cembra since 2020

"By exchanging ideas

with colleagues

from different countries, we can learn from each other, gain valuable exper­ ience and develop ourselves continuously."

Business Service Manager with Cembra since 2008

"As employees, we have the oppor­ tunity to learn flexibly and independently and to reinvent ourselves every day as part

of our work. For me, that is one of

Cembra's great strengths."

Dr. Aleksandra Bašic

Team Manager Financial Regulations

& Analytics

with Cembra since 2018

"Cembra develops unique employees. And they are the cornerstone of Cembra. We are a strong team and we inspire and drive each other in our work."

5

Mike Strahm

Head of Growth & Distribution Payments

with Cembra since 2022

"'Just do it' is not just a motto -

it's what I do on a daily

basis. The flexibility and sup­

port Cembra offers

enable me to continuously

surpass myself."

Moreno Rovito Head Product Auto with Cembra since 2015