Vz Holding Ag · SIX:VZN
Vz — H1 2010 Earnings Presentation
24 slides from Vz's earnings presentation, Aug 19, 2010
Slide 1: 1H 2010 Results and Outlook
VZ Holding Ltd Beethovenstrasse 24 VZ Group CH-8002 Zurich Telephone: +41 44 207 27 27 1H 2010 Fax: +41 44 207 27 28 vermoegenszentrum.ch vzonline.ch Results and Outlook Zurich, 19 August 2010
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements that involve known and unknown risks, uncertainties or other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by
Slide 3: Content
Content 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 2
Slide 4: Summary 1H 2010
Summary 1H 2010 Milestones Financials • Back on long-term growth path • Top line +25,3% to CHF 63,9 m Bottom line +51,4% to CHF 23,1 m • More clients, increased capacity, more consultancy projects • Management fees +29% – 1H09 affected by financial market turbulences • Successful introduction of wea
Slide 5: Revenues: positive development
Revenues: positive development Revenues by type in CHF million • +25,3% yoy 63,9 +8,2% to 2H09 59,1 7,0 51,8 52,0 51,0 6,9 • Management fees +29% yoy 8,5 +9,6% to 2H09 6,8 7,1 6,3 8,0 7,1 7,2 – AuM +22,5% (average value) 8,4 – higher portion of portfolio management mandates – small contribution of p
Slide 6: Revenues: 90% from private client segment
Revenues: 90% from private client segment in CHF million 100% = 51,8 52,1 51,0 59,1 63,9 10% 12% 12% 10% 10% • Corporate client segment’s share declines to 10% – private client segment +28,3% yoy 90% 88% 88% 90% 90% – corporate client segment +2,6% yoy • Banking revenues reported in private client s
Slide 7: Net profit: growth accelerated by underlying effect
Net profit: growth accelerated by underlying effect Net profit in CHF million 22,3 23,1 • +51,4% yoy 18,0 21,4* +7,9% to 2H09 (adjusted) 16,3 15,3 • Operating margin (EBITDA) – from 39,1% to 47,0% yoy – unchanged to 2H09 (46,9% adjusted) • Net profit margin – from 29,9% to 36,2% yoy – unchanged to 2
Slide 8: Content
Content 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 7
Slide 9: Private client segment: undiminished growth
Private client segment: undiminished growth Financial consulting Wealth management (WM) # of consultancy projects in CHF million 31.12.08 30.6.09 31.12.09 30.6.10 3’140 AuM total 5’456 5’912 6’717 7’205 2’573 2’545 2’607 - PM mandates 3’751 4’083 4’752 5’097 - Other* 1’705 1’829 1’965 2’108 NNM tota
Slide 10: Private client segment: capacity growth on track
Private client segment: capacity growth on track Capacity growth Branches and satellites Germany: München Full-time equivalents (FTE) with client and budget Frankfurt responsibility Nürnberg Schaffhausen Basel 2008 2009 2010 Baden Winterthur Liestal Zürich St. Gallen Aarau Financial Zug Rapperswil c
Slide 11: VZ Depository Bank: steady client inflow
VZ Depository Bank: steady client inflow Number of clients • +21,1% clients since 31.6.09 8’146 +10,1% clients since 31.12.09 7’401 6’729 • +17,7% banking revenues yoy 6’008 +6,1% to 2H09 • +CHF 118 m cash deposits to CHF 843 m since year-end • Assets: low risk profile – 58% money market – 29% Swiss
Slide 12: Content
Content 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 11
Slide 13: Corporate client segment: deferred upswing
Corporate client segment: deferred upswing Premium volume under management in CHF million p.a. • Revenues +2,6% yoy -1,4% to 2H09 257 • EBIT margin declines to 14,0% 252 (2H09: 23,7%, 1H09: 19,9%) 247 243 • Lower insurance premiums per client as a result of cost cutting and downsizing • Revenue base
Slide 14: Content
Content 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 13
Slide 15: Financials: income statements – unaudited (1)
Financials: income statements – unaudited (1) in CHF million* yoy 2H 09 1H 08 2H 08 1H 09 2H 09 adjusted** 1H 10 1H 10 Consulting fees 6,5 6,8 6,1 6,5 6,8 +12,1% Management fees 37,9 36,5 37,5 44,2 48,4 +29,0% Banking revenues 7,1 8,5 7,2 8,0 8,5 +17,8% Other operating revenues 0,3 0,3 0,2 0,4 0,2 -
Slide 16: Financials: income statements – unaudited (2)
Financials: income statements – unaudited (2) in CHF million* yoy 2H 09 1H 08 2H 08 1H 09 2H 09 adjusted** 1H 10 1H 10 EBITDA 21,2 23,1 20,0 28,8 27,7 30,0 +50,3% Depreciation and amortisation (1,1) (1,2) (1,2) (1,1) (1,2) -2,1% EBIT 20,1 21,9 18,8 27,7 26,6 28,9 +53,6% Net finance income 0,0 0,4 0,
Slide 17: Financials: operating expenses (1)
Financials: operating expenses (1) Personnel expenses in CHF million* 50% • +10,3% yoy 35 44,3% 45% 42,3% • Headcount freeze lifted in summer 2009 30 40,6% 40,0%** 39,0% 38,1% 25 24,9 40% 21,9 22,6 23,6** • +30,3 FTE since mid 2009 (+8,4%) 21,1 22,5 20 35% 15 • Personnel expense ratio stable at arou
Slide 18: Financials: operating expenses (2)
Financials: operating expenses (2) Other operating expenses in CHF million* 16,7% 18% 16,5% 16 16% 14,0% 14 15,0% 14% • +6,2% yoy 13,1% 12% 12 10 9,0 10% • Result of increased capacity 8,6 8,4 7,9 7,8 8% 8 6 6% 4 4% 2 2% 0 0% 1H08 2H08 1H09 2H09 1H10 Other operating expenses Portion of total revenue
Slide 19: Financials: EBITDA and margin
Financials: EBITDA and margin EBITDA in CHF million* 48,7% 50% 46,9%** 47,0% 35 44,4% • EBITDA +50,3% yoy 45% 41,0% 30,0 30 28,8 27,7** +8,3% to 2H09 (adjusted) 39,1% 40% 25 23,1 21,2 • EBITDA margin stable at 47% 20,0 20 35% 15 • Margin at the upper end of the long-term 30% 10 expectation 25% 5 0 2
Slide 20: Financials: EBIT and margin
Financials: EBIT and margin EBIT in CHF million* 50% 46,9% 45,1% 35 42,2% 45% 38,9% 45,0%** 28,9 30 36,8% 27,7 40% • EBIT +53,6% yoy 26,6** 25 21,9 35% +8,5% to 2H09 (adjusted) 20,1 20 18,8 30% • EBIT margin stable at 45,1% 15 25% • Margin at the upper end of the long-term 10 20% expectation 5 15% 0
Slide 21: Balance sheets
Balance sheets in CHF million* 30.6.09 31.12.09 30.6.10 Cash & cash equivalents 347,3 364,1 342,8 • Balance sheet increase due to Short-term investments 99,0 168,1 233,4 – higher customer deposits (CHF +118 m) Marketable securities 0,9 0,8 0,7 – more equity capital Swiss prime residential mortgages
Slide 22: Equity & payout ratios
Equity & payout ratios Payout ratios 2007 2008 2009 Equity ratios 30.6.09 31.12.09 30.6.10 in CHF million Net profit adjusted 33,2 34,3 36,7 Equity ratio 16,0% 15,2% 14,13% Retained earnings 21,2 22,3 23,3 BIS Tier I 21,4% 21,9% 19,18% Dividend total 12,0 12,0 13,4 BIS Tier II 21,4% 21,9% 19,18% Div
Slide 23: Content
Content 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 22
Slide 24: Outlook 2010
Outlook 2010 Business development Financial targets (unchanged) • Increase recruiting efforts in order to attract • Revenues: plus 15 to 20%, provided that markets consulting talents continue to normalise • Plan next branch offices and satellites • Operating expenses – personnel expenses: plus 10 to