LEONTEQ AG RESULTS PRESENTATION FY 2014

LEONTEQ AG RESULTS PRESENTATION FY 2014 Zurich, 26 February 2015

2 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR JAPAN LEGAL DISCLAIMER This presentation of Leonteq AG (the Company ) serves for information purposes only and does not constitute research. This presentation and all documents and information used therein or distributed in the context of this presentation do not constitute or form part of and should not be construed as, an offer (public or private) or a solicitation of offers (public or private) to purchase or subscribe for or sell 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 presentation may not be made available (directly or indirectly) to any person in relation to whom the making available of the presentation 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 presentation may contain specific forward-looking statements, e.g. statements including terms like believe, assume, expect, 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 presentation or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation. All figures in this presentation extracted from the consolidated IFRS financial statements for the years ended 31 December 2014 and 2013 are audited. By attending this presentation or by accepting any copy of the material presented, you agree to accept the terms set out above and to be bound by the foregoing limitations. Any including only partial reproduction of any article or picture is solely permitted based on an authorization from Leonteq AG. No responsibility is assumed in case of unsolicited delivery. Leonteq AG 2015. All rights reserved.

3 AGENDA Key take aways at a glance Financial results 2014 Market update Summary & outlook Appendix

4 KEY TAKE AWAYS AT A GLANCE

5 KEY TAKE AWAYS AT A GLANCE Net profit grew 61 to CHF 62.6 million, mainly driven by strong double-digit growth in turnover (up 30 to CHF 20.4 billion) Total operating income increased 26 to CHF 200.0 million 20.4bn - - 361 200m +26 55 62.6m +61 Platform partners provided the majority of turnover (55, up 7 percentage points) and total operating income (52, up 8 percentage points) Leonteq continued its investments into the successful onboarding of new platform partners, the strengthening of its regional offices and its platform and new initiatives, in line with the announced purpose of the rights offering in August Total operating expenses up 22 to CHF 139.8 million; cost per unit continued to drop to CHF 8,034 (down 6) reflecting the operating leverage; cost-income ratio further improved by 3 percentage points to 70 Platform partner strategy with significant progress: new partnership with DBS in Asia and addition of a second issuing entity of Notenstein Private Bank in Guernsey Board of directors will propose shareholder distribution of CHF 3 (2013: CHF 2) per share

6 FINANCIAL RESULTS 2014

7 NOTE TO FINANCIAL RESULTS 2014 As a reflection of Leonteq s strategic priorities (platform partner business, regional expansion and new initiatives), the segment reporting structure and key performance indicators were adapted To underline the focus on platform partnerships and a further development of the platform Leonteq decided to disclose the following new segments: Partner Innovation & Development: expenses related to platform research, innovation of business applications and the onboarding of new platform partners Banking Platform Partners: revenues and expenses related to Leonteq s platform partners in the banking industry, previously summarized as white-labeling partner Insurance Platform Partners: revenues and expenses related to Leonteq s platform partners in the insurance industry, previously summarized as white-labeling partner Leonteq Production: revenues and expenses related to the issuance of Leonteq structured investment products Corporate Center

KEY PERFORMANCE INDICATORS POSITIVE DEVELOPMENT IN PLATFORM PARTNER BUSINESS 1 Turnover has been calculated as the aggregated notional amount of structured products issued through Leonteq s platform plus the aggregated notional amount of structured products traded through Leonteq s platform. 2 Banking platform partners: Companies or company groups in the banking industry with which Leonteq has established cooperation arrangements relating to one or several of the following, depending on the scope of cooperation: hedging arrangements, distribution, market making, product life-cycle management, or further services related to issuance of investment products. 3 Insurance platform partners: Companies or company groups in the insurance industry with which Leonteq has established cooperation arrangements relating to life insurance and capitalization products, and where Leonteq, depending on the scope of cooperation, provides for a product platform that covers a range of product types for every life cycle stage of policies and enables the partner to launch and maintain tailor made life insurance products, as well as further services such as advice and provision of investment concepts for individual payment plans. 4 Clients (intermediaries): Defined as financial institutions, asset managers (incl. insurance brokers and business introducers), institutional investors or insurances, which, based on a distribution agreement, did at least one primary or secondary market transaction in the respective period on account of their respective clients or for their own account. General KPIs 2014 2013 Change to 2013 Turnover (CHFbn) 1 20.4 15.7 30 Share of turnover platform partner products 55 48 7PP Average margin on turnover (bps) 98 101 (3) Average margin on turnover platform partner products (bps) 93 94 (1) Platform partners / Client related KPIs Number of banking platform partners 2 4 2 2 Number of insurance platform partners 3 1 1 0 Number of clients 4 802 658 22 Production KPIs Number of products issued 12,657 10,132 25 Cost per unit 8,034 8,560 (6) Number of outstanding unit-linked life insurance policies 19,099 13,223 44 Profitability KPIs Cost-income ratio 70 73 (3PP) Return on equity 25 27 (2PP) 8

9 GROUP NET PROFIT INCREASED PLATFORM PARTNER BUSINESS DRIVING PROFITABILITY Number of platform partners Turnover (in CHFbn) 2014 5 2014 20.4 2 30 2013 3 2013 15.7 0 2 4 6 8 0 5 10 15 20 Operating income (in CHFm) Group net profit (in CHFm) 2014 200.0 2014 62.6 26 61 2013 158.4 2013 38.8 0 50 100 150 200 0 15 30 45 60

10 INCOME STATEMENT STRONG BUSINESS GROWTH DRIVES INCOME AND NET PROFIT CHF million 2014 2013 Change to 2013 Net fee income 181.1 135.9 33 Strong growth in net fee income reflecting increased earning contributions from platform partners Increase in total operating expenses driven by regional expansion, higher staff expenses and increased business volumes Net tax benefits were mainly driven by a generally lower tax rate and a tax credit effective from 2013 onwards Net trading income 20.6 24.9 (17) Other operating income (1.7) (2.4) (29) Total operating income 200.0 158.4 26 Personnel expenses (85.6) (69.1) 24 Other operating expenses (41.9) (36.8) 14 Depreciation and amortization (12.3) (9.0) 37 Total operating expenses (139.8) (114.9) 22 Profit before taxes 60.2 43.5 38 Income tax expense 2.4 (4.7) (151) Group net profit 62.6 38.8 61

11 STRENGTHENING OF SWISS FRANC IMPACT ON LEONTEQ S RESULTS Leonteq s results are affected by foreign exchange rate developments as revenues and expenses are unequally distributed among different currencies Cost base is predominantly in CHF whereas revenues well distributed among Leonteq s main currencies IN CHF MILLION CHF EUR USD OTHER TOTAL Total operating income 66 51 70 13 200 share in 33 26 35 6 Total operating expenses 109 14 3 14 140 share in 78 10 2 10 Considering an average FX rate EUR / CHF of 1.00 (-18 compared to average rate 2014) and USD / CHF of 0.87 (-5 compared to average rate 2014) the estimated impact on profit before taxes for the financial year 2014 would be -16 To protect certain expected future cash flows from changes in foreign exchange rates, Leonteq may enter periodically into cash flow hedges in line with applicable accounting standard requirements

12 PLATFORM PARTNERS CONTRIBUTION EXCEEDING 50 Rising contribution from platform partners in both turnover (+ CHF 3.8bn resp. +51) and operating income (+ CHF 34.7m resp. +50) Turnover (in CHFbn) 15 12 9 6 3 0 7.5 48 8.2 11.3 55 2013 2014 9.1 Margin Margin Margin Margin bps 94 bps 108 bps 93 bps 105 Operating income (in CHFm) 125 100 75 50 25 0 70.0 44 88.4 104.7 52 2013 2014 95.3 Platform partners Leonteq Securities

13 PLATFORM PARTNERS CONTINUED PROGRESS IN THE CORE STRATEGY Major achievement with initiation of first platform partnership in Asia with DBS close to 100 products issued in the first two months Strategic step towards further expansion with Notenstein Private Bank through formation of second issuing entity in Guernsey total outstanding volume with Notenstein Private Bank amounted to CHF 1.3 billion Solid increase in outstanding volume with EFG International compared to 2013 Hiring of expert team to increase capacity to onboard platform partners progressing well Outstanding volume in platform partner products of CHF 3.9 billion Investments and spending in platform partner business amounted to approximately CHF 9.2 million (2013: CHF 5.5 million) in the course of 2014 Currently, Leonteq has platform partners in the following regions: Banking Insurance Switzerland Europe (excl. CH) Asia

OPERATING LEVERAGE COST PER UNIT FURTHER IMPROVED Development of costs and number of issued products Cost per unit (CHF) 2 Number of products issued amounted to 12,657 in 2014 Cost per unit dropped 69 since 2009 Indexed to 100 800 600 500 400 300 200 185 167 360 443 564 181 185 704 217 48 17 CAGR CAGR 2014 2013 2012 2011 2010 2009 8,034 8,560-69 10,656 12,097 18,840 26,073 0 10 000 20 000 30 000 100 100 133 Net new hired FTEs (in ) 0 2014 24 2009 2010 2011 2012 2013 2014 2013 8 Total operating expenses 1 Number of products issued 2012 11 2011 19 1 Total operating expenses from segments Banking Platform Partners and Leonteq Production. 2 Calculated as total operating expenses (full cost approach including depreciation and amortization) from segments Banking Platform Partners and Leonteq Production divided by number of products issued. 14 2010 2009 58 42 0 20 40 60

15 OPERATING EXPENSES INCREASED TO SUPPORT GROWTH Development of total operating expenses (in CHFm) Increase in personnel expenses mainly driven by hiring internationally and in key functions at the headoffice as well as performancerelated compensation reflecting the growth of the overall business 2014 +22 12.3 9 30 41.9 85.6 61 Other operating expenses are driven by our regional expansion as well as increased staff base and business volumes 2013 7 30 63 9.0 36.8 69.1 0 25 50 75 100 125 150 Depreciation and amortization Other operating expenses Personnel expenses

PERSONNEL EXPENSES CONTINUED HIRING REFLECTING GROWTH OF THE BUSINESS FTE breakdown 1 Employees by nationality 36 nationalities Increase of FTEs by 24 mainly driven by hiring of: - 7 FTEs for partner onboarding - 28 FTEs in regional offices - 16 FTEs in IT development / smart data team +24 2014 2013 11 41 46 8 12 13 274 80 76 361 Hungary India Singapore Italy 2 2 2 4 Others 18 Switzerland 38 23 36 232 291 UK 8 11 15 0 50 100 150 200 250 300 350 Asia Europe (excl. Switzerland) Switzerland Germany France 1 Full Time Equivalents ( FTE ) employees 16

41 46 275 SEGMENT RESULTS ALL THREE BUSINESS SEGMENTS PROFITABLE New segment reporting to reflect internal organization and Leonteq s strategic priorities Strong development in Insurance Platform Partners as revenues indicate recurring future income over a long period of time Segment Partner Innovation & Development includes costs of new initiatives and onboarding costs for new platform partners Operating income (CHFm) Partner Innovation & Development Banking Platform Partners Insurance Platform Partners Leonteq Production Corporate Center 83.2 54.2 21.6 15.8 95.2 88.4 0 10 20 30 40 50 60 70 80 90 100 Segment profit before taxes (CHFm) Partner Innovation & Development Banking Platform Partners Insurance Platform Partners Leonteq Production Corporate Center -10.3-5.3-19.7-16.5 44.1 26.5 13.5 9.4 32.6 29.4-20 -10 0 10 20 30 40 50 to 2013 abs. (CHFm) rel. Banking 29.0 54 Insurance 5.8 37 Leonteq 6.8 8 Total 41.6 26 Business segment profitability 2014 2013 to 2013 Banking 47 51 (4PP) Insurance 38 41 (3PP) Leonteq 66 67 (1PP) to 2013 abs. (CHFm) rel. Banking 17.6 66 Insurance 4.1 44 Leonteq 3.2 11 Partner Innovation (5.0) 94 & Development Corporate Center (3.2) 19 Total 16.7 38 17 2013 2014

REGIONAL DEVELOPMENT STRONG PERFORMANCE IN SWITZERLAND AND EUROPE Total operating income (in CHFm) Switzerland and Europe (double-digit growth in all sales locations) with strong business performance driven by Banking and Insurance Platform Partners 2014 87.7 44 47 93.6 18.7 9 Asia behind management expectations and below 2013 mainly due to limitation in business set-up and less large ticket transactions in 2014; however, H2 2014 has shown a rebound in business and revenues compared to H1 2014 +26 2013 +26 44 +44 41 15 (22) Switzerland Europe (excl. CH) Asia 69.5 64.9 24.0 0 40 80 120 160 200 18

19 USAGE OF NET PROCEEDS FOR ACCELERATED GROWTH SUPPORTING GROWTH STRATEGY PLATFORM PARTNER BUSINESS REGIONAL EXPANSION PLATFORM EFFICIENCY/INNOVATION Investments and spending to support growth strategy: Onboarding new platform partners Strengthening of regional offices New initiatives Will result in additional risk-weighted assets in the future Increase of risk-weighted assets by CHF 350 million. As a consequence FINMArequired capital increased by CHF 37 million (21 of net proceeds) Continued high investments in the platform / offices: like for like investments increased by CHF 8 million in 2014 compared to 2013 (5 of net proceeds) New partnership with DBS in Asia - close to 100 products issued in the first two months Second issuing entity of Notenstein in Guernsey Overall increase of outstanding volume of products generated through platform partners to CHF 3.9 billion Onboarding of DBS and second issuing entity of Notenstein Private Bank in Guernsey onto Leonteq s investment service platform Significant hiring of 11 sales FTEs and 3 FTEs in other front functions with local know-how in regional offices New partnership with DBS in Asia New office premises in Guernsey and Singapore and further movements planned in London and Hong Kong Onboarding of DBS onto Leonteq s platform Further enhancement of the Group s Analytics Service / Quant Library Launch of new smart data business initiative: Internal release of underlying optimizer Further enhancement of the Group s Analytics Service / Quant Library, Raptor and life-cycle management tool Launch of new smart data business initiative: First heat maps and trends available on public Constructor Additional spending of CHF 10 million for onboarding platform partners, regional strengthening and new initiatives for future growth Set-up of a dedicated team focusing on onboarding new platform partners (7 FTEs) Internal resources to onboard DBS and Notenstein Finance Guernsey Significant hiring of 28 FTEs in regional offices (11 Sales FTEs and 17 FTEs in front and back-office functions) Grant of capital markets license by the Monetary Authority of Singapore Setup of platform research and smart data team and further strengthening of platform development team (increase of 16 FTEs in total)

CAPITAL STRUCTURE UNDERPINNING FINANCIAL STABILITY AND STRENGTH Increase in outstanding volume of platform partners and Leonteq products mainly impacted required capital for market and credit risk Eligible capital more than doubled by rights offering in August 2014 Board of directors will propose a shareholder distribution of CHF 3 per share (2013: CHF 2) Capital development CHFm Tier 1 capital (31 Dec 2013) 147.5 Net profit 2014 62.6 Other capital effects* 166.4 Less estimated dividend (23.9) Tier 1 Capital (31 Dec 2014) 352.6 Tier 2 Capital (31 Dec 2014) Total eligible capital (31 Dec 2014) 352.6 Capital ratio in Tier 1 ratio (31 Dec 2014) 30.2 Total capital ratio (31 Dec 2014) 30.2 Required capital/risk-weighted assets 2014 CHFm 2013 CHFm Market risk (incl. derivatives) 57.4 38.5 Interest rate 22.6 18.5 Equities 29.8 16.8 Foreign exchange/gold 1.9 1.4 Commodities 3.1 1.8 Credit risk 13.9 8.6 Operational risk 19.5 16.0 Non-Counterparty related risk 2.4 2.2 Total required capital (31 Dec) 93.2 65.3 Risk-weighted assets (31 Dec) 1,165.5 815.9 20 Note: Capital and ratio figures are compliant with the transitory provisions of Basel III * include net proceeds of CHF 173.3 million of the rights offering in August 2014

21 CAPITAL STRUCTURE IMPACTED BY BUSINESS GROWTH Driven by the accelerated growth in business supported by the rights offering in August 2014 risk-weighted assets (RWA) increased by CHF 350 million or 43, mainly due to market, credit and operational risk This increase in RWA resulted in additional required capital (FINMA s minimum required total capital ratio 10.5) of CHF 37 million which represents 21 of the net proceeds Business growth has a negative impact on Leonteq s capital ratio due to the accounting treatment of primary fee income. Whereas new issuances immediately impact Leonteq s RWA, the related revenues are recognized over six months and increase the eligible capital at a later stage

22 BALANCE SHEET DEVELOPMENT INCREASE IN HEDGE BOOK DRIVEN BY GROWTH IN BUSINESS Total assets 12.6 86.5 1.0 31.12.2014 Increase in hedge book driven by higher outstanding volumes issued by platform partners and Leonteq Outstanding volume of products issued under own name reached CHF 3.7 bn (large majority non-cosi) CHF 1.6 bn of financial assets invested in highly rated (Aaa or Aa1) short- to mid-term high quality bonds and cash Financial assets consist of 87 level 1 instruments and 13 level 2 instruments 31.12.2013 Total liabilities 31.12.2014 10.9 0 10 20 30 40 50 60 70 80 90 100 21.2 Cash and receivables Financial assets Other assets 88.1 77.0 1.0 1.8 21.9 76.3 1.8 31.12.2013 0 10 20 30 40 50 60 70 80 90 100 Short-term credits & liabilities Financial liabilities Other liabilities

23 MARKET UPDATE

24 DEVELOPMENT OF STRUCTURED PRODUCTS MARKET SIGNIFICANT POTENTIAL FOR FUTURE GROWTH AuM (EURbn) 1 3.4 49.4 47.2 Leonteq platform share 2 2014 40.3 594.3 593.9 0.5 Decrease in AuM in Europe mainly driven by Italy (EUR -37 bn) and the UK (EUR -10 bn) 2013 3.4 50.7 45.9 44.3 657.9 584.0 0.3 3.7 53.7 42.6 2012 48.9 713.7 566.5 0.2 1 Refers to overall structured products volume excluding non-retail and leverage products placed with investors by all issuers as determined by Structured Retail Products; Jan 2015 2 Refers to outstanding volume in structured products issued by Leonteq Securities, Notenstein Privatbank and EFG International 0 200 400 600 800 1000 1200 1400 Switzerland Europe (excl. Switzerland) Asia Pacific

25 STRUCTURED PRODUCTS MARKET CONTINUED HIGH DEMAND FOR EQUITY-LINKED PRODUCTS Distribution of gross sales by underlying asset class in Europe 1 (in ) 81.7 6.2 2.1 1.3 2.9 5.8 2014 72.4 12.6 2.8 1.4 2.6 8.2 2013 62.5 21.3 2.6 3.6 2.2 7.8 2012 1 Refers to overall structured products volume excluding non-retail and leverage products placed with investors by all issuers as determined by Structured Retail Products Ltd.; Source: Structured Retail Products Ltd., Jan 2015 0 20 40 60 80 100 Equities Interest Rates Hybrids Commodities FX Rates Others

LIFE INSURANCE MARKET SWITZERLAND Booked gross premiums in CHFbn 35 Unit-linked life insurance market 2013 Others Mobiliar Increase in demand for unit-linked life insurance products driven by market environment (e.g. low interest rates) and regulatory developments (e.g. SST, Solvency II) 30 25 20 15 CAGR (10yr) CAGR (10yr) 3.2 1.4 Skandia Zurich Swiss Life Allianz Pax 6.0 7.4 13.3 2.3 3.5 5.1 2.5 5.3 CHFbn 2.4 20.5 Generali 34.1 10 Helvetia* Lombard 5 CAGR (10yr) (2.7) *Platform partners 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Individual insurance Unit-linked life insurance Group insurance Capitalization product Source: Swiss Insurance Association 26

27 LIFE INSURANCE MARKET EUROPE & ASIA EUROPE Life premium volume 2013 in * ASIA Life premium volume 2013 in * 25 20 23.5 USDbn 947 60 50 47.1 USDbn 898 16.9 40 15 12.5 12.1 14.1 30 10 5 0 5.0 3.6 3.6 3.3 2.7 2.7 20 10 0 16.9 10.2 8.3 5.8 3.6 1.7 1.6 4.8 * Calculated as life premium volume 2013 in the respective country divided by the total life premium volume of the respective region Source: Swiss Re Sigma UK France Italy Germany Ireland Switzerland Spain Sweden Netherlands Luxembourg Others Japan China South Korea Taiwan India Hong Kong Singapore Thailand Others

28 SUMMARY & OUTLOOK

29 SUMMARY 1/2 Good financial results and strong strategic progress in 2014 Increase of share of turnover and operating income generated through platform partner products to above 50 Further decrease in cost per unit despite significant investments in platform and staff Significant progress in implementation of platform partner strategy with DBS and Notenstein Finance Guernsey Strategic priorities (platform partner business, regional expansion and new initiatives) well on track

30 OUTLOOK 2/2 Leonteq will invest prudently in its growth strategy with focus on onboarding new platform partners, expanding its regional offices, and enhancing its platform and innovation Additional investments and spending in 2014 will result on an annualized basis in a higher cost-base for the company going forward Stronger Swiss franc will impact Leonteq s result but the current market conditions also provide opportunities as investors seek new solutions to risk-adjust their portfolios. Although the geopolitical environment remains fragile, Leonteq is optimistic for further business development

31 APPENDIX

32 PLATFORM PARTNERS OUR PARTNERS Proven model in the banking and insurance sector in Switzerland LEONTEQ PARTNERS

33 PLATFORM PARTNERS SERVICE OFFERING COVERING THE WHOLE VALUE CHAIN Leonteq produces structured investment products for platform partners. The platform partner is the issuer and interacts directly with the end clients. Services comprise, among others, risk management and reporting, product documentation, lifecycle management services, accounting services and structuring. I PRODUCT DESIGN 01 II IN-HOUSE RISK MANAGEMENT 04 MARKET MAKING PRODUCT MANUFACTURING 06 07 05 LIFECYCLE MANAGEMENT RISK & REGULATORY REPORTING ACCOUNTING SERVICES CHOICE OF ISSUERS (CREDIT RISK) 08 III PRODUCT OFFERING 03 ISSUANCE & SETTLEMENT 02 PRODUCT DOCUMENTATION & REPORTING

34 LEONTEQ INTRODUCTION LEONTEQ SECURITIES AG Zurich Geneva Guernsey LEONTEQ SECURITIES (EUROPE) GMBH Frankfurt London Paris LEONTEQ SECURITIES (HONG KONG) LTD. Hong Kong LEONTEQ SECURITIES (MONACO) SAM Monaco LEONTEQ SECURITIES (SINGAPORE) PTE. LTD. Singapore WHO WE ARE Independent technology and service partner for investment solutions covering the full value chain of structured investment products focusing on industrializing production processes and service excellence delivered by an international team of experienced industry professionals. HOW WE DIFFERENTIATE OURSELVES Modern platform Integrated IT platform built from ground up with no legacy issues Full in-house production of all product components Vertical integration Control of the entire value chain as a basis for proactive service tailored to specific needs of clients Automation of key processes mitigating operational risks and enhancing client service Cost leadership Modern platform resulting in competitive cost per issued product allowing for small ticket sizes Independence Allows further pursuit of core platform partners strategy

STRUCTURED INVESTMENT PRODUCTS MAIN PRODUCT CATEGORIES PRODUCT CATEGORY Product type (example) CAPITAL PROTECTION Capital Protection with Participation YIELD ENHANCEMENT Barrier Reverse Convertible PARTICIPATION Tracker Certificate Example Underlying: Swiss blue chip basket Maturity: 8 years Nominal: CHF 1 000 Capital Protection/Strike: 95 Participation: 100 Underlying: Adecco Maturity: 1.5 years Nominal: CHF 1 000 Barrier: 75 Coupon: 6 p.a. Underlying: SMI Index No maturity Participation: 100 Conversion Ratio: 100:1 Market expectation Rising underlying Rising volatility Sharply falling underlying possible Underlying: sideways/slightly rising Falling volatility Underlying will not breach barrier during product lifetime Rising underlying Payout Profit Profit Profit Barrier Cap 0 Strike 0 Strike 0 Loss Underlying Capital Protection with Participation Loss Underlying Barrier Reverse Convertible Loss Underlying Tracker Certificate Characteristics Minimum redemption at expiry equivalent to the capital protection Capital protection defined as percentage of nominal Value of the product may fall below its capital protection during the lifetime Participation in underlying price increase above the strike No barrier breach: nominal plus coupon is paid at redemption Barrier breach: Product changes into a Reverse Convertible Coupon payment regardless of underlying development Reduced risk compared to a direct investment into the underlying Limited profit potential (Cap) Participation in development of the underlying Reflects underlying price moves 1:1 (adjusted by conversion ratio and any related fees) Risk comparable to direct investment in the underlying 35

36 GUIDING PRINCIPLES TRANSPARENCY Experienced clients management team with vested interest and seasoned board SERVICE Focused business in attractive Transparency on risk, Service offering product niche return & performance differentiated by characteristics for proactive support of clients and Modern Leonteq and Partners integrated throughout structured the whole product products lifecycle platform SUSTAINABILITY Company strategy geared towards sustainable growth through broad employee participation Client base Market-leading with more provider of collateralized than 500 clients structured products that minimize issuer risk Leading market maker in Switzerland based on availability of quotes, bid-ask Attractive customer spread and volumes proposition and offered* market reputation LIQUIDITY * Since March 2010 consistently ranked as one of the top three market makers on SIX Structured Products Exchange pursuant to the Payoff Market Making Index (PMMI) from Derivative Partners. SECURITY

1 st AWARDS HIGH QUALITY OF SERVICES & INNOVATION RECOGNIZED BY MARKET 2014 HANDELSZEITUNG CEO of the Year, Category Banking and Insurance ERNST & YOUNG WORLD ENTREPRENEUR OF THE YEAR The jury has selected Jan Schoch to represent Swiss entrepreneurship at the World Entrepreneur Of The Year event Leonteq has received more than 15 awards since its foundation in 2007 SWISS DERIVATIVE AWARDS 2013 ERNST & YOUNG SWITZERLAND ENTREPRENEUR OF THE YEAR SWISS DERIVATIVE AWARDS 1 st Category Best Commodity Product 1 st Category Best Product on alternative Underlyings Best Market Making Investment Products Top Service Award 1 st Category Emerging Entrepreneur 1 st Category Best Equity Product Top Service Award Best Market Making Investment Products Special Award Innovator and IPO 2012 SWISS DERIVATIVE AWARDS 1 st Category Precious Metals Products Best Market Making Investment Products Top Service Award ZERTIFIKATE AWARDS AUSTRIA 2 nd Category Index- and Participation 2 nd Category Austrian Certificate of the Year 37 ECOFIN (ECONOMIA Y FINANZAS) SPAIN Most Innovative Product COSI

LEONTEQ PLATFORM IN SWITZERLAND 1 st Largest issuers by number of outstanding listed structured investment products (defined as all product types except leverage products) on SIX Structured Products Exchange 1 Yield enhancement exchange-listed structured products 30 25 26.4 24.2 (~29 market share) 2 20 15 10 11.0 10.3 9.5 5 0 Leonteq Platform Vontobel UBS Julius Bär ZKB 1 Source: SIX Structured Products Exchange, January 2015 2 Refers to number of outstanding products listed on SIX Structured Products Exchange as of 31 December 2014; Source: SIX Structured Products Exchange, January 2015 3 Source: SIX Structured Products Exchange, January 2015 38 Leonteq Platform refers to all products issued by Leonteq Securities, Notenstein Privatbank and EFG International. Leonteq is well-positioned within target segment of investment products a primary transaction driven market due to the high demand for bespoke products. Secondary market turnover distribution for structured investment products listed on SIX Structured Products Exchange in 2014: UBS (46.9), Bank Vontobel (14.5) and Leonteq Platform (9.5) 3.

39 MILESTONES 2007 Sep EFG Financial Products AG Zurich and EFG Financial Products Holding AG founded Nov EFG Financial Products (Guernsey) Limited founded as an issuer of products Dec 35 employees and FINMA Licenced Zurich Office of EFG Financial Products AG opened 2008 Apr 1 st version of Constructor Oct Break-even of EFG Financial Products AG Dec Opening of Geneva Office and SIX membership of EFG Financial Products AG 2009 Sep Founding of EFG Financial Products (Monaco) SAM Oct 1 st COSI product and 1 st Managed Futures Product ( CTA ) of EFG Financial Products AG 2010 Feb Founding of EFG Financial Products (Europe) GmbH (licence October 2010), headquartered in Frankfurt Jul Founding of EFG Financial Products (Hong Kong) Limited (licence April 2011) 2011 Apr 222 EFG Financial Products Group employees Jul Opening of EFG Financial Products (Europe) GmbH, London branch New cooperation between Helvetia and EFG Financial Products AG Sep Opening of EFG Financial Products (Europe) GmbH Paris branch 2012 Oct IPO of EFG Financial Products Holding AG with listing on SIX Swiss Exchange 2013 Mar Notenstein Private Bank in Switzerland as new platform partner Apr Closing of share transaction from EFG International to Notenstein Private Bank and announcement of new name Jun Rebranding: EFG Financial Products renamed to Leonteq and new CICD 2014 Feb Cornèr Bank as new platform partner Jun Capital markets license for Leonteq in Singapore Launch of smart data initiative and Avaloq cooperation Expansion of partnership with Notenstein Private Bank through formation of Notenstein Finance (Guernsey) Ltd. Aug Rights offering Nov DBS as new platform partner

40 LEONTEQ IS UNIQUE IN THE STRUCTURED PRODUCTS MARKET WELL POSITIONED ACROSS THE ENTIRE VALUE CHAIN OFFERING FOCUS Vanilla products (warrants, discount certificates, equity-linked notes) Brokerage model for structured investment products Client driven structured investment products Proprietary trading driven structured investment products Purely client driven structured investment products Owning entire value chain ensures distinguished client service Competence for platform partnerships in structured investment products space EXISTING PLAYERS Leonteq Focus

41 PLATFORM PARTNERS INTRODUCTION OUR PARTNERS In a platform partnership, structured investment products are created for a partner that acts as issuer and interacts directly with the end-customer. The services comprise, inter alia, risk management and reporting, product documentation, lifecycle management services, accounting services and structuring. BENEFITS FOR PLATFORM PARTNERS Extended product offering provides an additional distribution channel and increases the attractiveness towards end investors Depending on the setup, it could serve refinancing needs of banks; for example to complement client deposits or other conventional financing sources Cost- and time-efficient solution to launch a structured investment product offering without the need to build up the required expertise or make significant upfront investments Increased efficiency and scalability while reducing operational and regulatory risks BENEFITS FOR END INVESTORS Investors are familiar with companies in their home market leading to lower barriers to entry Access to more diverse structured investment product offerings serviced by Leonteq throughout the whole product lifecycle BENEFITS FOR LEONTEQ Focus on core competence Leveraging own platform

DOWNSTREAM & UPSTREAM INTEGRATION EXTENSION OF OUR VALUE CHAIN Initiatives aim to increase the productivity of clients on both sides of their cost structure at upstream levels, smart data initiative aims to enhance and improve the investment decision process at downstream levels, the cooperation with Avaloq targets to enable faster product set-up and trade matching on our clients side as well as increasing the risk transparency for portfolio reporting Downstream & upstream integration extends platform offering enhances service offering to existing partners as well as increases attractiveness towards potential new partners creates a not-easily replicable service level, leveraging our platform with most recent technologies targets to increase platform activity and volume, improve margin levels, retain clients as well as increase attractiveness of the offering for platform partners 42

43 DOWNSTREAM & UPSTREAM INITIATIVES FITTING OUR CORE STRATEGY UPSTREAM ELEMENTS Product structuring Product selection Pricing Extension of our service offering DOWNSTREAM ELEMENTS Booking & Settlement Product set-up & Issuance Lifecycle management Product Reporting UPSTREAM INTEGRATION Rich database enables to identify trends within the investor crowd and in sub-groups of peers leading to better personalized investment proposals using Big Data technologies Combining optimization and trend analysis capacities enables to offer unique services to clients by providing instantly optimized basket of underlyings and structures DOWNSTREAM INTEGRATION Better offering for platform partners Targets to automate the after-trade process flow and increase transparency/visibility regarding risk management Strategic partnership with Avaloq, a leading provider of core banking solutions, will increase client productivity by improved automation in the areas of trade entry, product set-up and position reporting Analytical solutions will facilitate risk decomposition of structured investment products in the portfolio context and make them more easy to understand

PENSION SOLUTIONS PRODUCTS FOR EVERY STAGE OF LIFE KEY FACTS Launch of Helvetia Auszahlungsplan a unit-linked life insurance policy in July 2013 Leonteq s Pension Platform covers an extensive range of product types, including products for every life cycle stage, i.e. accumulation, evolution and decumulation products. Leonteq s product offering supports periodic premiums and one-off contributions across a broad range of tenors. Outstanding unit-linked life insurance policies amount to more than 19,000 (vs. 13,223 at year end 2013) Average policy contract tenor for accumulation products (periodic investments) exceeds 30 years Accumulation Periodic Investments Guaranteed minimum redemption + participation in markets + possibility of guarantee increases Evolution Money Market Money market comparable interest Decumulation Fixed Annuity with Bonus Predefined decumulation period Fixed Decumulation Decumulation with Bonus One-off Investments One-off Investments Guaranteed minimum redemption + participation in markets + possibility of guarantee increases Participation 44

PENSION SOLUTIONS PRODUCTS FOR EVERY STAGE OF LIFE Leonteq s Pension Platform allows for the tailoring of each product to the individual requirments of the end customer: inflows are invested in three investment components based on a multitude of individual parameters. INDIVIDUAL PAYMENT ALLOCATION Inflows are split between three investment components. The policy holder s preferences and the time to maturity are taken into account. Participation Reserve Bond enables participation in capital markets can be exchanged during the life of the policy based on individual policy holder request increases the sustainability of the participation mitigates a potential cash-lock-risk secures the guarantee at maturity Subsequently, each client portfolio is monitored and reallocated continuously to reflect individual preferences even in changing markets. Individual Payment Allocation participation & money market return Redemption Bonus Participation Reserve guaranteed minimum yield Guarantee Bond Reserve Participation Bond 45

46 PENSION SOLUTIONS PRODUCT MATRIX ACCUMULATION + CONSOLIDATION + DECUMULATION ACCUMULATION + DECUMULATION Leonteq s Pension Platform supports all established retirement products. By assembling accumulation, prolongation and decumulation structures the entire bandwidth of retirement needs is covered. Prominent examples are the accumulation product Helvetia Garantieplan or the decumulation product Helvetia Auszahlungsplan. COMBINED ACCUMULATION + DECUMULATION FIXED DECUMULATION Payment Guaranteed Payout Bonus

RISK UPDATE AVERAGE VALUE AT RISK AT CHF 1.5m IN 2014 (VS. CHF 1.1m IN 2013) VaR BY ASSET CLASS 2 VaR (CHFk) Total VaR 2014 (in CHFk) 1 VaR equity 989 3 000 VaR fixed income 445 VaR FX 69 2 500 VaR commodity 472 VaR investment portfolio 199 2 000 VaR total 935 1 500 1 000 500 1 99 confidence level; 1 day 2 All numbers as of 31 December 2014 VaR Limit CHF 2.5m 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 47

LEONTEQ AG SHARE OVERVIEW Market capitalization CHF 1,911 m (as per 31.12.2014) Share price development (in CHF)* 2014 250 +124 Outstanding shares Listing 7,962,960 registered shares SIX Swiss Exchange 225 200 175 Listing date 19.10.2012 150 Ticker symbol LEON 125 100 Swiss Security Number 19 089 118 75 ISIN CH0190891181 50 25 Main shareholders (as per 31.12.2014) Notenstein Private Bank / 26.6 Raiffeisen 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Founding partners 21.5 * Historic data is not a reliable indicator for future development. Source: Bloomberg 48

LEONTEQ AG EXECUTIVE COMMITTEE & BOARD OF DIRECTORS EXECUTIVE COMMITTEE* Jan Schoch Roman Kurmann Manish Patnaik Sandro Dorigo Ulrich Sauter Yann Besnard Daniel Cangemi CEO (Founding partner) Chief Financial Officer Chief Operating Officer Head Pension Solutions (Founding partner) Head Legal, Compliance and Human Resources Head Business Innovation Chief Risk Officer BoD: Board of Directors AC: Audit Committee RC: Risk Committee RemCo: Remuneration Committee BOARD OF DIRECTORS* Prof. Dr. Peter Forstmoser Dr. Pierin Vincenz Dr. Jörg Behrens Vince Chandler Patrick de Figueiredo Hans Isler Dr. Adrian Künzi Lukas Ruflin Chairman (BoD); Chairman (RemCo) Vice-Chairman (BoD); Member (RemCo) Member (BoD); Chairman (RC); Member (AC) Member (BoD); Member (RemCo) Member (BoD); Member (AC) Member (BoD); Chairman (AC); Member (RC) Member (BoD); Member (RC) Member (BoD); Member (RemCo) 49 * As of February 2015