2020

09.04.2020 – Leonteq AG

Leonteq AG: Leonteq provides business update against the background of COVID-19

Leonteq AG / Key word(s): Change in Forecast
Leonteq AG: Leonteq provides business update against the background of
COVID-19

09-Apr-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE | LEONTEQ PROVIDES BUSINESS UPDATE AGAINST THE BACKGROUND OF
COVID-19

Zurich, 9 April 2020

Leonteq AG (SIX: LEON) today announced that while its results have been
impacted by the Covid-19 situation, its client business remains strong and
the company is making further progress in executing its strategy.

During the extraordinary events surrounding the Covid-19 situation,
Leonteq's top priority has been to safeguard the health and safety of its
employees, clients and other stakeholders. It has implemented comprehensive
contingency measures early-on and has continued to provide full client
service at all times under unprecedented market conditions.

Leonteq's start to the 2020 financial year was strong with high levels of
client activity and a positive trading result on the back of increased
volatility towards the end of February. In March, the global spread of
Covid-19 and the oil price shock resulted in extraordinary high levels of
volatility and a turmoil of global capital markets affecting all asset
classes underlying structured products. In this environment, Leonteq
recorded a significant increase in turnover and fee income, as it continued
to provide clients its full service offering including liquid market making
services. At the same time, Leonteq faced hedging-related losses as a result
of the oil-price shock as well as the wide and unexpected cancellations of
already announced dividend payments affecting cashflows from shareholdings
owned by Leonteq for hedging purposes. In addition, Leonteq recorded a
notable increase in hedging-related costs as market risk exposures changed
rapidly in an increasingly illiquid hedging market. As a result, Leonteq
currently expects first-half 2020 profits to come in around break-even
level.

With its continued strong client business and its solid capital and
liquidity position, Leonteq is prepared to navigate any foreseeable market
scenario for the remainder of the year. However, given the uncertainties
around the duration and the global economic impact of the Covid-19
situation, Leonteq is currently not in a position to provide a financial
outlook for the full year and is withdrawing its previously communicated
2020 guidance. Leonteq will publish its half-year results on 23 July 2020.

Lukas Ruflin, Chief Executive Officer of Leonteq, stated: "The Covid-19
situation has created a real stress test for global financial markets, and
Leonteq has navigated solidly through this unprecedented turmoil. Given the
ongoing uncertainties, we will focus on protecting Leonteq's profitability
and exercise strict cost management. At the same time, we continue to see
strong client demand, and delivering the service and support our clients
expect during this challenging period is our key concern. We remain well
positioned, with solid capital and liquidity levels, and continue to drive
our business forward."

On a strategic level, Leonteq has made good further progress with its key
initiatives in the year to date and continues to drive its business
transformation forward, especially the Smart Hedging Issuance Platform
(SHIP). Leonteq's new digital marketplace LynQs has also been further
developed and new additional features for its lifecycle management module
have been integrated to enhance user experience.

Furthermore, Leonteq has recently signed a cooperation agreement with a new
white-labelling partner, details of which will be announced in the course of
this month.

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

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

LEONTEQ
Leonteq AG is a Swiss company active in the finance and technology sector
with a focus on the structured products segment. 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 to produce capital-efficient,
unit-linked pension products with guarantees. The company has offices and
subsidiaries in 10 countries, through which it serves over 50 markets.
Leonteq is listed on the SIX Swiss Exchange.
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. In addition, currently, it is
very difficult to provide a meaningful prediction on how the governmental
actions in response to the ongoing outbreak of a novel coronavirus disease
(COVID-19) and other COVID-19 related factors will affect Leonteq's
operations and how long such measures will remain in place. The COVID-19
outbreak has caused, and may continue to cause, uncertainty, economic
instability and a significant decrease of total economic output in the
affected areas and globally. The impact of the COVID-19 outbreak on the
general economic environment in the markets in which Leonteq operates remain
uncertain and could be significant. 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.


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