Vz Holding Ag · SIX:VZN
Vz — FY2010 Earnings Presentation
25 slides from Vz's earnings presentation, Mar 8, 2011
Slide 1: Results and Outlook 2010
VZ Holding Ltd Beethovenstrasse 24 VZ Group CH-8002 Zurich Telephone: +41 44 207 27 27 2010 Fax: +41 44 207 27 28 vermoegenszentrum.ch vzonline.ch Results and Outlook Zurich, 8 March 2011
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: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook © VZ VermögensZentrum AG Page 2
Slide 4: Summary 2010
Summary 2010 Milestones Financials • Successful 2010 despite difficult environment • Top line +20.7% to CHF 132,9 million - increased insecurity caused by debt crisis - management fees +20.9% - strong Swiss franc - banking revenues +23.3% - volatile financial markets - consulting fees +18.3% • Stead
Slide 5: Revenues: return to growth path in 2010
Revenues: return to growth path in 2010 Full years • Total revenues +20.7% in CHF million 132.9 • Management fees +20.9% yoy 110.1 15.3 - AuM +18.9% (average) 103.8 18.8 94.4 13.1 - higher portion of discretionary portfolio management 13.9 13.7 15.3 74.7 5.7 15.5 mandates 11.7 - small contribution o
Slide 6: Revenues: similar segment distribution
Revenues: simular segment distribution in CHF million 100% = 74.7 94.4 103.8 110.1 132.9 11% 10% 11% 11% 9% • Corporate client segment’s share declines to 9% - private client segment +22.9% yoy - corporate client segment +3.3% yoy 89% 90% 89% 89% 91% • Banking revenues reported in private client seg
Slide 7: Net profit: further leverage supports growth
Net profit: further leverage supports growth Full years 49.3 • Net profit +34.4% (2009: adjusted) in CHF million 37.6 • Operational margin (EBITDA) 48.0% 33.2* 34.3 vs. 43.3% in 2009 (adjusted) 36.7** 25.7 - revenue growth rate 2010: +20.7% - operating expense growth rate 2010: +10.8% (2009: adjuste
Slide 8: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook © VZ VermögensZentrum AG Page 7
Slide 9: Private client segment: steady inflow of new clients
Private client segment: steady inflow of new clients Financial consulting Wealth management # of consulting projects in CHF million 31.12.08 31.12.09 31.12.10 6’042 AuM 5’456 6’717 7’758 5’058 5’133 5’152 - PM mandates 3’751 4’752 5’413 4’133 - Other* 1’705 1’965 2’344 NNM 590 940 1’185 (12 months)
Slide 10: Private client segment: capacity growth continued
Private client segment: capacity growth continued Capacity growth Financial consulting performance Full-time equivalents (FTE) with client and budget NNM per financial consultant (FTE) responsibility (average) 2008 2009 2010 2011e 2008 2009 2010 2011e Financial consulting 43.8 52.6 60.0 ca. 70 13.5
Slide 11: Branch office network
Branch office network Switzerland Germany Schaffhausen Basel Winterthur Liestal Baden Zürich St. Gallen Aarau Rapperswil Zug Solothurn (1.7.) Meilen (tbd) Luzern Horgen (1.1.) Neuchâtel Bern Thun Düsseldorf (1.3.) Lausanne Frankfurt Genève Nürnberg München branches satellites New branches in 2011 ©
Slide 12: VZ Depository Bank: growing client base
VZ Depository Bank: growing client base Number of clients • Number of clients +25.8% • Overall banking revenues +23.3% 9’310 • Net interest margin still low, slight improvement in 2H10 7’401 • More than 85% of all wealth management clients 6’008 use VZ bank’s custodian services • Higher investment r
Slide 13: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook © VZ VermögensZentrum AG Page 12
Slide 14: Corporate client segment: upswing still deferred
Corporate client segment: upswing still deferred Premium volume under management in CHF million p.a. 266 • Revenues +3.3% 252 243 • Economic downturn still affects revenue growth 203 - 1H10 +2.6% yoy - 2H10 +3.9% yoy 172 • Lower insurance premiums per client - clients downsized in the economic crisi
Slide 15: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook © VZ VermögensZentrum AG Page 14
Slide 16: Financials: income statements (1)
Financials: income statements (1) in CHF million* 2010 2008 2009 adjusted** 2010 yoy adj Consulting fees 13.3 12.5 14.8 +18.3% Banking revenues 15.5 15.3 18.8 +23.3% Management fees 74.4 81.7 98.8 +20.9% Other operating revenues 0.6 0.6 0.5 n.r. Total operating revenues 103.8 110.1 132.9 +20.7% Pers
Slide 17: Financials: income statements (2)
Financials: income statements (2) in CHF million* 2010 adj 2008 2009 adjusted** 2010 yoy EBITDA 44.3 48.8 47.7 63.7 +33.7% Depreciation and amortisation 2.3 2.3 2.3 +3.1% EBIT 42.0 46.5 45.4 61.4 +35.2% Net finance income +0.3 -0.1 -0.4 n.r. Profit before income tax 42.3 46.4 45.3 61.0 +34.7% Income
Slide 18: Financials: personnel expenses
Financials: personnel expenses in CHF million* 44.3% 45% 42.3% 35 40.6% • Personnel development 40.0%** 39.0% 38.7% 40% 38.1% 30 31.12.09 31.12.10 26.6 HC 431 504 24.9 35% 25 23.6** FTE 370 432 21.9 21.1 22.6 22.5 20 30% • Accelerated recruiting in 2H10 15 25% 1H10 +6.4% (FTE) 10 2H10 +9.8% 20% 5 •
Slide 19: Financials: other operating expenses
Financials: other operating expenses in CHF million* 16.7% 18% 16.5% 16 16% 14.0% 14 15.0% 12.5% 14% • Marketing expenses typically lower in 2H 13.1% 12% 12 10% • Business expansion causes higher other 10 8.6 9.0 8.6 7.9 8.4 7.8 operating expenses in 2010 8 8% 6 6% • Tangible economies of scale 4 4%
Slide 20: Financials: EBITDA and margin
Financials: EBITDA and margin in CHF million* 40 48.7% 48.9% 50% 46.9%** 47.0% 35 44.4% 33.7 45% 41.0% 30.0 • EBITDA +33.7% to CHF 63.7 million 30 39.1% 28.8 27.7** from CHF 47.7 million (2009: adjusted) 40% 25 23.1 21.2 35% • EBITDA margin 48.0% in 2010 20.0 20 vs. 43.3% in 2009 (adjusted) 30% 15 •
Slide 21: Financials: EBIT and margin
Financials: EBIT and margin in CHF million* 40 50% 46.9% 47.1% 45.1% 35 42.2% 45% 45.0%** 32.5 38.9% 40% • EBIT +35.2% to CHF 61.4 million 30 36.8% 27.7 28.9 26.6** from CHF 45.4 million (2009: adjusted) 35% 25 20.1 21.9 30% • EBIT margin 46.2% in 2010 20 18.8 vs. 41.2% in 2009 (adjusted) 25% 15 • 4
Slide 22: Balance sheets
Balance sheets in CHF million* 31.12.09 31.12.10 Cash & cash equivalents 364.1 257.8 • Balance sheet total declines in 2010 Short-term investments due to higher investment ratio in client 168.1 124.6 portfolios with VZ Depository Bank Marketable securities 0.8 0.8 Swiss prime residential mortgages 2
Slide 23: Equity & payout ratios
Equity & payout ratios Payout ratios 2008 2009 2010 Equity ratios 31.12.08 31.12.09 31.12.10 in CHF million Net profit 34.3 37.6 49.3 Equity ratio 14.5% 15.2% 20.0% Retained earnings 22.3 23.3 31.2 BIS Tier I 22.7% 21.9% 25.4% Dividend total 12.0 13.4 18.11,2 BIS Tier II 22.7% 21.9% 25.4% Dividend p
Slide 24: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook © VZ VermögensZentrum AG Page 23
Slide 25: Outlook 2011
Outlook 2011 Business development Financial targets • Expansion of branch network • Revenues: plus 15 – 20%, if markets keep stable - Horgen (CH) 1.1.2011 - Dusseldorf (D) 1.3.2011 • Operating expenses - Solothurn (CH) 1.7.2011 - personnel expenses: plus 12 – 15% - Meilen (CH) tbd - other operating