Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — F. van Lanschot Bankiers — Debt Investor Presentation (May 2013)
35 slides from Kempen European High Dividend Fund N.V. N's debt investor presentation, May 2013
Slide 1: Credit Update May 2013
F. van Lanschot Bankiers N.V. Credit Update May 2013
Slide 2: Content
Content Profile of Van Lanschot 2012 annual results and Q1 2013 trading update Funding and liquidity 1 1
Slide 3: Executive summary
Executive summary Profile of Van Lanschot Key financials Who •The we areindependent bank in the Netherlands with oldest Q1 2013 FY 2012 history dating back more than 275 years Core Tier 1 ratio (%) 11.9% 11.0% •A relationship-oriented bank, with genuine personal Funding ratio (%) 83.1% 84.4% attenti
Slide 4: Evolution into an independent Private Bank
Evolution into an independent Private Bank 1737 2013 1737 29-6-1999 30-9-2004 1-1-2007 14-05-2013 Established as Listed on Acquisition Acquisition Strategic Review: a trading Euronext CenE Bankiers Kempen & Co focus on private house in Amsterdam banking, asset ‘s-Hertogenbosch management and merchan
Slide 5: Van Lanschot: a local and authentic bank
Van Lanschot: a local and authentic bank • Local visibility with 34 offices and client meeting centres in the Netherlands, Belgium and Switzerland • Van Lanschot is the number 2 player in the Netherlands and Belgium with a market share of around 15% in the private banking market • A relationship-ori
Slide 6: Experienced and balanced management board
Experienced and balanced management board Karl Guha (1964) Constant Korthout Ieko Sevinga (1966) Arjan Huisman (1971) Chairman of the Board (1962) CFO / CRO Commercial activities COO Background: CRO at Background: 18 years at Background: Director of Background: Partner with UniCredit Banking Group R
Slide 7: Van Lanschot is listed on the Amsterdam stock exchange
Van Lanschot is listed on the Amsterdam stock exchange Delta Lloyd 30% Shareholder since the early 1970s ABP 13% Rabobank 12% As a result of the acquisition of Friesland Bank on 2 April 2012 Stichting FB Oranjewoud 11% Charitable association, former shareholder of Friesland Bank Shareholder agreemen
Slide 8: Solid profile reflected in strong creditworthiness
Solid profile reflected in strong creditworthiness Standard & Poor’s On 16 November 2012, Standard & Poor's (S&P) •Long-term credit rating: BBB+ downgraded the credit ratings of almost all Dutch banks. These •Outlook long-term credit rating: Negative downgrades were the result of a negative reassess
Slide 9: Our strategy is to focus, simplify and grow
Our strategy is to focus, simplify and grow Our strategy is to: Focus on private banking in combination with asset management and merchant banking, and actively reduce activities not linked to private banking Focus Simplify our product offering, client service model and IT/operations Grow through a
Slide 10: Our strategy is to focus
Our strategy is to focus – Focus means making choices • Reinforced private banking offering with specific service concepts … - personal banking - private banking - private office • … and specialist services for - entrepreneurs - healthcare professionals - business professionals & executives - founda
Slide 11: Our strategy is to simplify
Our strategy is to simplify – Simplify means increasing our effectiveness and efficiency • Transparent and simplified product and service offering • Efficient organisation, with centralised teams for private banking mid-office and investment expertise • Lean IT and streamlined back office • Signific
Slide 12: Our strategy is to grow
Our strategy is to grow – We envisage growth in all our core activities Private banking • Growing assets managed for our clients • More focused service concepts • More tailored product offering • Maintaining client proximity Asset management • Leveraging strong long-term track record in niche produc
Slide 13: Growth in private banking means …
Growth in private banking means … • New service offering – personal banking: • an inclusive offering for all clients seeking advice on wealth preservation and creation • welcoming wealth management starters • State-of-the art online solutions for wealth management, investment advice and savings, sup
Slide 14: Growth in private banking means a choice of service levels for clients
Growth in private banking means a choice of service levels for clients Service level Personal banking Private banking Private office ▪ Private equity, SRI ▪ Tailored discretionary and fiduciary management ▪ Family office offering ▪ Structuring ▪ International structuring ▪ Investment advice ▪ Invest
Slide 15: A wealth manager with an asset-light balance sheet and strong capital base
A wealth manager with an asset-light balance sheet and strong capital base Targets 2017 Focus • Core Tier I ratio > 15% • Return on Core Tier I equity of 10- 12% Simplify • Cost-income ratio of 60-65% Grow 1 4 14
Slide 16: Content
Content Profile of Van Lanschot 2012 annual results and Q1 2013 trading update Funding and liquidity 1 5 15
Slide 17: 2012 Annual results - Highlights
2012 Annual results - Highlights Client assets +5% to € 52.3 billion Growth in • Increase in assets under management through robust performance of discretionary management client assets products and new institutional mandates • Closure of several foreign offices led to outflow Bank is profitable des
Slide 18: Growth in assets under management due to supportive equity markets
Growth in assets under management due to supportive equity markets and strong inflows in asset management Assets under management (€ billion) Client assets up 5% to € 52.3 3.8 Billion 2.3 - 1.9 Total assets under management up 11% to € 40.9 billion 40.9 36.7 Strong market performance due to robust p
Slide 19: Underlying positive result
Underlying positive result Net profit hit by previously announced goodwill impairment and non-recurring charges Gross results (€ million) Reconciliation of underlying net profit (€ million) 191.0 126.9 Underlying net profit 2.0 115.8 Non-recurring charges -44.7 Impairment on -126.6 2010 2011 2012 go
Slide 20: Balance sheet is for the client
Balance sheet is for the client Total assets € 18.0 billion Cash and balances 2.1 1.5 Due to banks with banks Financial instruments 1.6 82% has a triple-A rating; No exposure to European periphery; Virtually no trading for own account Customer savings and deposits Loans and advances High funding rat
Slide 21: Loan book - Increased loan loss provisioning in line with prudent strategy
Loan book - Increased loan loss provisioning in line with prudent strategy Loan book by sector at 31 December 2012 The bank continually reviews the loan book with regard to private banking potential Total loan book at 31 36% December 2012 € 13.5 billion 51% Residential Mortgages Other private loans
Slide 22: Loan book with a focus on private banking
Loan book with a focus on private banking Impaired loans (NPLs) relatively low at 3.9%; High coverage ratio of 56% Addition to loan Mortgage loans: Total loss Total loan loss provision NPL Coverage Low NPLs at 1.4% (x € million) exposure % Impaired provision 2012 (%) ratio (%) Mortgage loans for an
Slide 23: Property portfolio
Property portfolio Small loans; property located in the Netherlands Property loans by sector at 31 December 2012 Property portfolio (corporates and private individuals) at year- end 2012 amounted to € 2.4 billion 7% 27% Small loans; average loan size at year-end 2012 € 2.3 million 17% Offices No pro
Slide 24: Diversified investment and trading portfolio with low risk profile
Diversified investment and trading portfolio with low risk profile • Total investment and trading portfolio of € 1.6 billion held mainly for liquidity purposes • Includes investments resulting from participation in LTRO of € 750 million • Portfolio comprises mainly Dutch government bonds and small a
Slide 25: Van Lanschot capital and funding ratios remain strong
Van Lanschot capital and funding ratios remain strong Core Tier I ratio (%) Strong capital position; Core Tier I ratio 11.0% Solid capital ratios without government support 10.9% 11.0% 9.6% Further deleveraging: risk weighted assets down at € 10.5 billion 31- 12-2010 31- 12- 2011 31-12-2012 Ample li
Slide 26: Investment and cost reduction programme on track
Investment and cost reduction programme on track Operating expenses (€ million) Investment and cost reduction programme is aimed at achieving a structural cost reduction - 8.2 In 2012, this programme has 10.0 delivered a significant - 5.4 workforce reduction and a decline in salary costs of € 8.2 41
Slide 27: Developments in 2013
Developments in 2013 Q1 developments Karl Guha, CEO of Van Net profit for first quarter 2013: € 24.8 million Lanschot: “The profit growth and results that the bank has • Underlying profit before non-recurring items: € 26.3 million achieved in the first quarter show resilience in continuing • Additio
Slide 28: Content
Content Profile of Van Lanschot 2012 annual results and Q1 2013 trading update Funding and liquidity 2 7 27
Slide 29: As a Private Bank, majority of funding is customer savings and deposits
As a Private Bank, majority of funding is customer savings and deposits Funding mix at 31 December 2012 Largely ‘self funded’ in line 5% with a traditional Private 8% Bank: funding ratio 84.4% at 31 December 2012 Customer savings & 8% deposits Debt securities & subordinated loans Interbank funding S
Slide 30: Key focus areas for wholesale funding
Key focus areas for wholesale funding • Van Lanschot has relatively high proportion of retail funding, not dependent on capital markets • New requirements under Basel III • The bank wishes to demonstrate access to wholesale funding markets going forward I - Continuing diversification of funding sour
Slide 31: Van Lanschot has various funding programmes
Van Lanschot has various funding programmes Debt Issuance Programme / MTN Non-MTN / Specials • € 5.0 billion programme • Euro and non-euro issues on standalone Unsecured - used for wholesale funding (senior unsecured documentation and subordinated), and structured retail • Private placements product
Slide 32: Van Lanschot has solid access to the wholesale markets
Van Lanschot has solid access to the wholesale markets Long-term funding raised in 2011, 2012 and 2013: Strong funding position • Wholesale market issues: based on stable level of • April 2013 Re-offering of € 750 million Citadel 2010-II A-notes bond issuance • Oct 2012 Issue of € 500 million 4-year
Slide 33: Comfortable funding diversification across maturities and instruments types
Comfortable funding diversification across maturities and instruments types Wholesale funding by maturity at 31 December 2012 (€ million) Wholesale funding is well 3,000 diversified in terms of maturity 2,500 Successful in raising funds in 2,000 wholesale markets in 2011, 2012 and 2013 1,500 Basel I
Slide 34: Contacts at Van Lanschot
Contacts at Van Lanschot Constant Korthout Geraldine Bakker – Grier Erik Bongaerts (CFRO) (Manager Investor Relations) (Director Treasury) +31 73 548 33 99 +31 73 548 33 50 +31 73 548 83 10 constant.korthout@vanlanschot.com g.a.m.bakker@vanlanschot.com e.bongaerts@vanlanschot.com Ralf van Betteraij
Slide 35: Disclaimer
Disclaimer This presentation (“Presentation”) is provided for information purposes only and does not constitute, or form part of, any offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of, or any solicitation of any offer to underwrite, subscribe for or otherwise acquir
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