VP Bank AG Class A · SIX:VPBN
VP Bank AG Class A — Non-Deal Roadshow (October 2006)
72 slides from VP Bank AG Class A's roadshow presentation, October 2006
Slide 1: VP Bank Group Presentation
VP Bank October, 2006 VP Bank Group Presentation
Slide 2: Fredy Vogt, Chief Financial Officer
Fredy Vogt Chief Financial Officer 2
Slide 3: Program
Program • Introduction to the VP Bank Group • Review of first half 2006 • Vision • Strategic orientation • Targets & outlook 2007 – 2009 3
Slide 4: Enclosures – handout
Enclosures – handout First-half results 2006 Basic information for investors and analysts Client segments / Group structure 4
Slide 5: Introduction to the VP Bank Group
Introduction to the VP Bank Group
Slide 6: Who we are
Who we are • One of Liechtenstein’s largest banks • Clients from more than 60 countries and assets under management totaling CHF 32.2 billion • 569.9 employees (full-time equivalents) • Focus on private banking 6
Slide 7: History
History 1956 Founding of parent bank in Vaduz 1974 Introduction of public and employee shares 1983 Listing on Zurich Stock Exchange (today’s SWX) 1988 Founding of subsidiaries in Luxembourg and Zurich 1995 Founding of British Virgin Islands (BVI) subsidiary in joint venture with ATU 2004 Founding of
Slide 8: VP Bank Group throughout the world
VP Bank Group throughout the world 8
Slide 9: Major shareholders
Major shareholders Proportion of Proportion of Shareholders voting rights (%) equity capital (%) Stiftung Fürstlicher Kommerzienrat 48.4 24.9 Guido Feger (foundation), Vaduz (FL) U.M.M. Hilti-Stiftung 10.8 10.7 (foundation), Schaan 9
Slide 10: Review of first half 2006
Review of first half 2006
Slide 11: Profile H1 2006
Profile H1 2006 CHF 32.2 billion 569.9 in client assets employees under management CHF 73.2 million net income CHF 924.8 million CHF 9.0 billion equity total assets 11
Slide 12: Comparison of profile figures at June 30, 2006
Comparison of profile figures at June 30, 2006 30.06.2005 30.06.2006 Consolidated net income 56.7 mln. 73.2 mln. Cost/income ratio 46.3% 44.1% 31.12.2005 30.06.2006 Employees 565.5 569.9 Total assets 8.2 bln. 9.0 bln. Shareholders’ equity 926.1 mln. 924.8 mln. 12
Slide 13: Key figures
Key figures 30.06.2005 30.06.2006 Tier 1 ratio 15.8 % 15.8 % Cost/income ratio 46.3 % 44.1 % Return on equity 13.9 % 16.2 % Price/earnings ratio per bearer share 10.05 10.75 Basic earnings per bearer share 9.35 CHF 12.06 CHF 13
Slide 14: VP Bank Group – first half 2006
VP Bank Group – first half 2006 • Excellent six-month results • Consolidated net profit increased by 29 percent • Operating income rose by 42 percent • Net new money of CHF 1.1 billion • Market expansion with simultaneous cost controls (C/I ratio: 44.1 %) • “A” rating (A/stable/A-1) confirmed by Sta
Slide 15: Targets through end of 2006
Targets through end of 2006 • Hold cost/income ratio below 50 percent • ROE: 12 to 15 percent • Tier 1 capital ratio: in excess of 16 percent • Net new money: plus 3 percent 15
Slide 16: Vision, Strategic orientation, Targets & outlook 2007–2009
Vision Strategic orientation Targets & outlook 2007 – 2009
Slide 17: The vision of VP Bank
The vision of VP Bank We rank among the best private banks. We earn the privilege of being our clients’ preferred partner. 17
Slide 18: Core competencies
Core competencies Investment Process Relationship Management Customer Analysis and evaluation of third-party providers and products Advisory Services Ger K 18
Slide 19: VP Bank business model
VP Bank business model Luxembourg Munich Zurich Vaduz Moscow Hong Kong British Virgin Islands Booking center VP Bank markets Representative and Liechtenstein advisory office Switzerland Germany Benelux Central/Eastern Europe Spain / Latin America Rest of Europe Middle East / Far East 19
Slide 20: Target and opportunity markets of VP Bank
Target and opportunity markets of VP Bank Target markets Opportunity markets •Liechtenstein •Russia •Switzerland •Central & Eastern Europe •Germany •Asia •Benelux •Italy •Spain / Lat. Amer. (S. 48) 20
Slide 21: Prioritization of client segments
Prioritization of client segments Private Trust Private Trust Clients Banking Clients Banking (S. 67) (S. 65) 21
Slide 22: Implementation of the market expansion efforts
Implementation of the market expansion efforts 1. Switzerland: organic growth is priority 2. Asia: become established locally and develop rapidly 3. Central and Eastern Europe: provide local service 4. Germany: develop further 22
Slide 23: VP Bank Hong Kong representative office
VP Bank Hong Kong representative office Asia – already one of our opportunity markets • The official opening festivities for the Hong Kong representative office will take place on December 1, 2006 23
Slide 24: Opportunities for the VP Bank Group in Asia
Opportunities for the VP Bank Group in Asia • Large number of affluent individuals • Very attractive growth region • Successive opening up of China – additional growth impetus • Broadening our knowledge of regional markets • Expanding our network of relationships • Positioning as an international pr
Slide 25: Outlook 2009 (1/2)
Outlook 2009 (1/2) • Focus on maintaining autonomy of the VP Bank Group • Independent banking group that is positioned as a recognized provider of private banking services at all of its locations • Client segments: primarily private banking, affluent and intermediary client (parent bank Vaduz: regio
Slide 26: Outlook 2009 (2/2)
Outlook 2009 (2/2) • Innovative services; open architecture (proprietary and third- party products – selection according to «best in class» principle) • Professionalism and advisory competence – comprehensive, ongoing employee education • EFQM evaluations (parent bank in Vaduz) • «Committed to Excel
Slide 27: Enclosures – handout
Enclosures – handout First-half results 2006 Basic information for investors and analysts Client segments / Group structure 27
Slide 28: First-half results 2006
First-half results 2006
Slide 29: Semi-Annual Report 2006
Semi-Annual Report 2006 • Consolidated statement of income • Consolidated balance sheet • Client assets under management • Segments • Dividends 29
Slide 30: Consolidated statement of income
Consolidated statement of income 30
Slide 31: Total operating income, net
Total operating income, net 30/06/2005 30/06/2006 167.7 in CHF million 141.8 80.7 67.9 +18.3 % 66.2 51.2 13.3 10.9 9.9 9.4 Interest Commission Trading Other income Total operating business business activities income, net 31
Slide 32: Operating expenses
Operating expenses 74.0 30/06/2005 30/06/2006 65.6 in CHF million 49.7 45.4 +12.8 % 24.3 20.2 Personnel Gen. & admin. Operating expenses expenses expenses 32
Slide 33: Depreciation and amortization
Depreciation and amortization 30/06/2005 30/06/2006 in CHF million 9.2 7.9 -14.1 % Depreciation and amortization 33
Slide 34: Valuation allowances and provisions
Valuation allowances and provisions 30/06/2005 30/06/2006 in CHF million 6.7 5.0 +35 % Valuation allowances and provisions 34
Slide 35: Net income as at 30.06.2006
Net income as at 30.06.2006 in CHF million 167.7 4 . 73.2 0 6 .2 1 9 2 5.9 14.6 .7 0 1 0 .5 2 3 . 74.0 6 2 1 Total operating Operating Depreciation & Taxes Net income income, net expenses amortization 35
Slide 36: Consolidated balance sheet
Consolidated balance sheet 36
Slide 37: Total assets
Total assets 31.12.2005 30.06.2006 in CHF billion 9.0 8.2 +9.3 % Total assets 37
Slide 38: On-balance-sheet client deposits
On-balance-sheet client deposits 31.12.2005 30.06.2006 in CHF million 7.7 7.1 +9.5 % Bilanzwirksame On-balance-sheet Kundengelder client deposits 38
Slide 39: Shareholders’ equity
Shareholders’ equity in CHF million .8 0 9 7 .2 1 9 926.1 924.8 -55.9 73.2 -17.6 .2 4 7 .6 9 -2 -1.0 .0 5 -1 Equity Dividends IAS 39 Forex differences Net income Equity 01.01.2006 and additional reserves on translation of 30.06.2006 distributions treasury shares 39
Slide 40: Due from banks
Due from banks 31.12.2005 30.06.2006 in CHF billion 4.7 4.1 +13.7 % Due from banks 40
Slide 41: Due from clients
Due from clients 31.12.2005 30.06.2006 in CHF billion 2.9 7 6 . 2.8 .2 0 . 2 2 .3 0 .6 0 6% 6 . 6% 28 % 1 +2.9 % 60 % Due from clients Mortgage credits Other collateral Credits to Unsecured credits public-law entities 41
Slide 42: Financial instruments
Financial instruments 31.12.2005 30.06.2006 in CHF million 1,009 6 . 968.4 1 6 5 .4 2 8 0 . .2 9 9 7 7 21 % 4 4 +4.2 % 79 % Financial Debt securities Equity securities instruments incl. credit derivatives 42
Slide 43: Client assets under management
Client assets under management 43
Slide 44: Client assets under management
Client assets under management 31.12.2005 30.06.2006 in CHF billion 32.2 1 8 . . 30.1 6 5 2 .5 1 2 .8 6 7% .8 7 24 % 1 +6.9 % 69 % Client assets Client accounts On-balance-sheet Fiduciary under management client deposits transactions 44
Slide 45: Client assets under management – asset classes
Client assets under management – asset classes VP Bank Group as at 30.06.2006 Other Investment 2.9% funds Liquidity 20.1% 30.8% Equities 21.8% Bonds 24.4% 45
Slide 46: Client assets under management – asset class funds
Client assets under management – asset class funds VP Bank Group as at 30.06.2006 Money market funds Other funds 15.1% 24.4% Bond funds 21.6% Equity funds 38.9% 46
Slide 47: Client assets under management – currencies
Client assets under management – currencies VP Bank Group as at 30.06.2006 Other 7.4% CHF 30.9% USD 24.6% EUR 37.1% 47
Slide 48: Client assets under management – countries
Client assets under management – countries VP Bank as at 31.12.2005 (parent bank, Vaduz) 48
Slide 49: Segments
Segments 49
Slide 50: Segment overview at June 30, 2006
Segment overview at June 30, 2006 Private Trust Banking Corporate Clients Banking Services Center Group Pretax profit 43.1 48.5 -13.4 0.9 79.1 mln. Client assets under 12.8 19.3 0.0 0.1 32.2 bln. management Employees 130.7 133.6 217.1 88.5 569.9 (full-time equivalents) 50
Slide 51: Private Clients
Private Clients 30.06.2005 30.06.2006 Variance Total operating income, net 64.1 million 70.7 million +10.3 % Operating expenses 26.1 million 23.6 million -9.7 % D&A, valuation allowances, provisions and losses 5.2 million 4.0 million -23.3 % Divisional income before income tax 32.8 million 43.1 mill
Slide 52: Trust Banking
Trust Banking 30.06.2005 30.06.2006 Variance Veränderung in Prozenten Total operating income, net 64.3 million 74.8 million +16.3 % Operating expenses 19.0 million 22.7 million +19.3 % D&A, valuation allowances, provisions and losses 0.5 million 3.6 million n.a. % Divisional income before income tax
Slide 53: Banking Services
Banking Services 30.06.2005 30.06.2006 Variance Total operating income, net -1.2 million -1.3 million -3.7 % Operating expenses 3.0 million 8.9 million + 199.8 % D&A, valuation allowances, provisions and losses 4.8 million 3.3 million -30.5 % Divisional income before income tax -9.0 million -13.5 mi
Slide 54: Corporate Center
Corporate Center 30.06.2005 30.06.2006 Variance Total operating income, net 14.7 million 23.6 million +60.3 % Operating expenses 17.5 million 18.9 million +7.8 % D&A, valuation allowances, provisions and losses 3.7 million 3.8 million -1.4 % Divisional income before income tax -6.5 million 0.9 milli
Slide 55: Dividends
Dividends 55
Slide 56: Dividends
Dividends 2004 + 2005 in CHF million in CHF 8.50 119.3 + 1.00 bonus dividend 7.50 6.00 Pay-out ratio: 42 % 50.3 Net income Dividend Bearer share attributable to shareholders of VP Bank 56
Slide 57: Pay-out ratio
Pay-out ratio 42.1 % 39.5 % 31.3 % 2003 2004 2005 57
Slide 58: Dividend yield
Dividend yield 3.9% 3.2% 2.4% 2003 2004 2005 58
Slide 59: Basic information for investors and analysts
Basic information for investors and analysts
Slide 60: Share capital
Share capital 31.12.2004 31.12.2005 No. shares Par val. No. shares Par val. In CHF 1,000 In CHF 1,000 Bearer shares p.v. CHF 10.00 5,314,347 53,143 5,314,347 53,143 Registered shares p.v. CHF 1.00 6,004,167 6,004 6,004,167 6,004 Total share capital 11,318.514 59,148 11,318.514 59,148 60
Slide 61: Comparison to SPI Banks 1994 - 2006
Comparison to SPI Banks 1994 - 2006 400 350 300 250 200 150 100 50 94 95 96 97 98 99 00 01 02 03 04 05 VP B ank SPI Banks (rebased to VP Bank) S o u rce: T h o ms o n D atas tream 61
Slide 62: Price trends, peers 1994–2006 (incl. dividend)
Price trends, peers 1994–2006 (incl. dividend) 700 600 500 400 300 200 100 0 94 95 96 97 98 99 00 01 02 03 04 05 VP B ank (1/1/1994 = 100) Vontobel (1/1/1994 = 100 Julius B aer (1/1/1994 = 100) S o u rce: T h o ms o n D atas tream 62
Slide 63: Master data
Master data Bearer shares listed on the SWX Swiss Exchange Symbol: VPB/denomination: CHF Security number: 1073721 ISIN number: CH0010737216 Sedol number: GB005968006 63
Slide 64: Client segments
Client segments
Slide 65: VP Bank – client segments
VP Bank – client segments • Private Banking segment: > CHF 1 million • Affluent Banking segment: CHF 100,000 – CHF 1 million • Intermediaries segment: external asset managers, fiduciaries and attorneys • Retail Banking segment: CHF < 100,000 (regional; as cost-optimized as possible) • Commercial Ban
Slide 66: Corporate structure
Corporate structure
Slide 67: Structure of VP Bank Group
Structure of VP Bank Group Internal Auditing Nikolaus Bléchlinger Group Marketing Thomas Weidmann Group Executive Management Corporate Communications ai. Tanja Gartmann Group Finance George M.Isliker Risk Management Hans-Fredo List Legal & Compliance Thomas Ritter Human Resources Management Karl Wal
Slide 68: VP Bank Executive Board
VP Bank Executive Board Adolf E. Real Chief Executive Officer, Executive Board member since 1989; dipl.Ing. 1954 ETH, MBA (University of San Diego, USA); Advanced Management Program (Harvard Business School) Vice President of the Executive Board of Liechtenstein Bankers’ Association (President in 20
Slide 69: VP Bank Executive Board
VP Bank Executive Board Georg Wohlwend Head of Trust Banking, Executive Board member since 1998; 1963 lic.oec., Swiss Banking School Gerhard Häring Head of Banking Services, Executive Board member since 2005; 1962 information management specialist; Advanced Executive Program of the Swiss Banking Sch
Slide 70: VP Bank Board of Directors
VP Bank Board of Directors Hans Brunhart Chairman of the Board Dr. iur. Guido Meier Vice Chairman of the Board Prof. Dr. Beat Bernet Member Dr. iur. Matthias Donhauser Member Roland Feger Member Walo Frischknecht Member lic. oec. Markus Thomas Hilti Member 70
Slide 71: We thank you for your kind attention.
We thank you for your kind attention.
Slide 72: Contact address and agenda
Contact address and agenda Investor Relations Fredy Vogt, CFO and Member of the Executive Board Verwaltungs- und Privat-Bank Aktiengesellschaft Aeulestrasse 6, 9490 Vaduz, Liechtenstein Tel +423 235 64 25 Fax +423 235 78 95 E-mail: investor.relations@vpbank.com Agenda • Annual Report 2006: March 6,