Bellevue Group Ag · SIX:BBN
Bellevue — FY2009 Earnings Presentation
37 slides from Bellevue's earnings presentation, Mar 2, 2010
Slide 1: Media and Analyst Presentation
Media and Analyst Presentation Tuesday, March 2nd 2010, 9:30 am at SIX Zurich
Slide 2: Agenda
Bellevue Group Agenda Introduction Martin Bisang 2 Financial Results 2009 Daniel Koller 9 Bank am Bellevue Serge Monnerat 15 Bellevue Asset Management André Rüegg 23 Q&A 31 Contact 32 1
Slide 3: Introduction – same as 12 months ago
Bellevue Group Introduction – same as 12 months ago The overall news is: most of it stayed the same “ Still no leverage “ Still no exposure to toxic assets “ Still fundamental and independent research “ Still profitable (although marginally) “ Still 48% employee and board of directors owned Bellevue
Slide 4: Shareholder structure same as 12 months ago
Strategy Bellevue Group Shareholder structure same as 12 months ago 57 shareholders per 31.12.04 (non-listed) 1’442 registered shareholders per 31.12.09 100% of shares with Bellevue employees 48% 38% external employees & shareholders board of directors 14% non-registered shareholders 3
Slide 5: Introduction – almost same as 12 months ago (bad news)
Bellevue Group Introduction – almost same as 12 months ago The bad news is: “ Regulatory burden increases “ Net profit has evaporated due to investment in future growth “ Goodwill and intangibles have been impaired “too big to fail” does not apply for Bellevue 4
Slide 6: Introduction – almost same as 12 months ago (good news)
Bellevue Group Introduction – almost same as 12 months ago The good news is: “ We hired further talents in portfolio management for ” a market neutral Hedge Fund ” a Healthcare Fund ” an African Opportunities Fund ” a Silk Road Opportunities Fund “ Our research ideas as well as Asset Management prod
Slide 7: Recruiting only the best – 20 new faces
Strategy Bellevue Group Recruiting only the best – 20 new faces 6
Slide 8: Strategy – same as 12 months ago
Bellevue Group Strategy – same as 12 months ago “ Increase recurring revenues “ Let management participate in the upside “ Internal growth rather than acquisitions “ Stay focused rather than diversify “ Optimise capital structure 7
Slide 9: Executive Board – still almost the same
Bellevue Group „Executive Board“ – still almost the same Bellevue Group AG Martin Bisang, CEO Daniel Koller, CFO Bellevue Asset Management AG Bank am Bellevue AG (designated CEO as of March 30, 2010) André Rüegg, Head Marketing & Sales Serge Monnerat, CEO Healthcare Franchise Growth Opportunities Br
Slide 10: Financial results 2009
Financial rés BELLEVUE a
Slide 11: Operating result – Bank am Bellevue
Financial results 2009 Operating result – Bank am Bellevue CHF 1’000 2009 2008 Brokerage and corporate finance 29’906 49’832 -19’926 -40.0% Interest income 3’767 6’432 -2’665 -41.4% Trading income 1’915 274 +1’641 -. Other income (incl. other commission income) 2’746 4’563 +1’817 +39.8% Operating
Slide 12: Operating result – Bellevue Asset Management
Financial results 2009 Operating result – Bellevue Asset Management CHF 1’000 2009 2008 Management fee 16’828 17’677 -849 -4.8% Performance fee 1’078 283 +795 - Other income 751 1’406 -655 -46.6% Operating income 18’657 19’366 -709 -3.7% Personnel expense -12’829 -9’244 -3’585 +38.8% General expen
Slide 13: Operating result – Bellevue Group (consolidated)
Financial results 2009 Operating result – Bellevue Group (consolidated) CHF 1’000 2009 2008 Commission income 50’621 70’971 -20’350 -28.7% Interest income 3’929 9’026 -5’097 -56.5% Trading income 2’049 604 1’445 +239.2% Other income 579 667 -88 -88.3% Operating income 57’178 81’268 -24’090 -29.6%
Slide 14: Non-operating items – Bellevue Group (consolidated) 1/2
Financial results 2009 Non-operating items – Bellevue Group (consolidated) 1/2 CHF 1’000 2009 2008 Operating result 8’449 40’781 -32’332 -79.3% P&L on other financial assets at fair value 4’135 -4’674 8’809 - P&L on financial assets -203 -3’924 3’721 - Ordinary depreciation -6’763 -7’013 250 -3.6%
Slide 15: Non-operating items – Bellevue Group (consolidated) 2/2
Financial results 2009 Non-operating items – Bellevue Group (consolidated) 2/2 CHF 1’000 2009 Total Result before impairment 598 Depreciation of intangible assets (impairment) -32’520 Tax effect 6’146 Valuation adjustment of goodwill (impairment) -69’289 Result for the year -95’065 Other intangible
Slide 16: Selected items
Financial results 2009 Selected items CHF 1’000 31.12.2009 31.12.2008 Total assets 718’182 983’302 -265’120 -27.0% thereof cash 327’321 333’490 -6’169 -1.8% in percentage of total assets 46% 34% +11.7% Total shareholder’s equity 332’730 454’641 -121’911 -26.8% Dividend proposal (CHF per share) 4.0
Slide 17: Bank am Bellevue
_ BELLEVUE Group it Ss
Slide 18: SIX Turnover back to 2005 level – 2009 -47% yoy
Bank am Bellevue SIX Turnover back to 2005 level – 2009 -47% yoy Swiss yearly turnover in equities for 2001-2009 (on-exchange only) (CHF BN) (%) 1,800 52% 60% 1,600 29% 40% 1,400 13% 20% 1,200 23% -7% -8% 0% 1,000 -14% 800 -20% 600 -40% 400 -47% -60% 200 0 -80% 2001 2002 2003 2004 2005 2006 2007 200
Slide 19: Bank am Bellevue SIX turnover
Bank am Bellevue Bank am Bellevue SIX turnover Turnover (CHF billion) 30 27.1 25 20.0 20 17.5 -33% 15 14.9 11.8 10 5 0 2005 2006 2007 2008 2009 16
Slide 20: Performance of broker research
Bank am Bellevue Performance of broker research Performance of broker research versus SMI 320 270 220 Outperformance in 20 out of 170 24 quarters (since inception) 120 70 2004 2005 2006 2007 2008 2009 Broker research SMI 17
Slide 21: Commission income reflects lower volumes
Bank am Bellevue Commission income reflects lower volumes CHF million Custody fee 90 Corporate Finance 80 77.4 Brokerage/placements 5.6 70 12.1 60 53.6 -40% 50 4.0 7.3 40 32.4 30 59.7 2.6 5.4 20 42.5 10 24.5 0 2007 2008 2009 18
Slide 22: Established organisation
Bank am Bellevue Established organisation Comment Management Team “ Serge Monnerat CEO as of March 30th, 2010 “ Thomas Lysser CFO as of January 1st, 2010 Research “ BB recommendations 2009: +47% “ 11 analysts “ Outperformance to SMI: +28% “ 130 shares covered Sales “ 10 sales professionals “ 2009 fo
Slide 23: Acquisition of 10% interest in US Broker Auerbach Grayson
Bank am Bellevue Acquisition of 10% interest in US Broker Auerbach Grayson “ Auerbach Grayson is a global agency broker distributing local research to the largest mutual funds, pension fund managers and hedge funds in North America “ Auerbach Grayson‘s client base covers 80% of all institutional Ass
Slide 24: Selected tombstones 2009
Bank am Bellevue Selected tombstones 2009 BURU Holding October 2009 ” January 2010 October ” December 2009 July ”October 2009 Undisclosed sum 2008 - 2009 M&A transactions CHF 132 Million CHF 490m Acquisition of the US business of Undisclosed sum Mandatory public tender offer by BURU Technitrol Inc‘s
Slide 25: Corporate Finance 2009 market share & positioning
Bank am Bellevue Corporate Finance 2009 market share & positioning Swiss public M&A transactions Swiss equity transactions Rank Name Deal Count Amount (USDm) Rank Name Issues 1 Credit Suisse 4 1'898 1 Zürcher Kantonalbank 20 2 Goldman Sachs 1 1'519 1 Credit Suisse 20 3 Bank am Bellevue 2 715 3 UBS 1
Slide 26: Bellevue Asset Management
—— as Bellevue Asset Management _ S BELLEVUE Group
Slide 27: Delivered on strategic growth projects
Bellevue Asset Management Delivered on strategic growth projects “ Employment of several specialists within their range of expertise Highly qualified ” Sales/Marketing: 7 employees Specialists ” Portfolio Management: 8 employees ” Operations: 2 employees “ Focus on selected sectors, regions and them
Slide 28: Strengthened organization & structure
Bellevue Asset Management Strengthened organization & structure CEO Sales & Marketing Portfolio Management Operations Sales Marketing New Markets Product Middle- Risk & & Healthcare Distri- Develop- & Manage- Finance Communi-c Franchise European Equities bution ment Backoffice ment ation & Spec. Man
Slide 29: Refocused and expanded business model
Bellevue Asset Management Refocused and expanded business model European Equities Healthcare New Markets & Special Mandates Leading quality & Innovative & liquid Reasonable & differenciated competence in investment opportunities niche strategies healthcare investments in emerging markets 1 Horizonta
Slide 30: Extended & differentiated product offering
Bellevue Asset Management Extended & differentiated product offering BB Silk Road Opportunities (Lux) BB African Opportunities (Lux) BB Selection (Lux) BB European Opportunities (Lux) BB Entrepreneur Switzerland / Europe BB Healthcare (Lux) BB Medtech (Lux) BB Biotech (Lux) CHF 1‘517 mn CHF 684 mn C
Slide 31: Outperforming relevant benchmarks/peer groups
Bellevue Asset Management Outperforming relevant benchmarks/peer groups In traditional core franchise healthcare… BB Biotech (Lux) Risk/Return profile 135 40% 130 125 30% NBI 120 BB Biotech (Lux) Earnings in % 115 20% 110 Peer average 105 100 10% Main competitor 95 90 0% Mar-09 Jul-09 Oct-09 Jan-10
Slide 32: Outperforming relevant benchmarks/peer groups
Bellevue Asset Management Outperforming relevant benchmarks/peer groups …as well as in new niche & growth areas BB Entrepreneur Switzerland BB African Opportunities (Lux) 150 125 140 120 130 115 120 110 110 100 105 90 80 100 70 95 60 50 90 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Jun-
Slide 33: AuM inflow in new products, increased net revenue margins
Bellevue Asset Management AuM inflow in new products, increased net revenue margins AuM Net revenue margins CHF million bps 2‘700 2’627 100 -40 90 +153 2’479 80 -188 +109 70 66 +14% 60 +12% 58 2‘000 -182 52 50 non recurring effects 40 30 20 10 1‘500 0 31.12.2008 Dividends Effect of Elimination Perfo
Slide 34: Strategic development path
Bellevue Asset Management Strategic development path Expansion and operational leverage Rollout and focused growth Consolidation and refocusing • Broaden and penetrate new client spectrum • Further diversify geographical • Rollout and anchoring of new focus (e.g. Asia) product offering • Repositioni
Slide 35: Q&A
Q&A
Slide 36: Contact
Bellevue Group AG Contact Investor Relations Daniel Koller Phone + 41 (0)44 267 72 51 Fax + 41 (0)44 267 67 78 dak@bellevue.ch Bellevue Group AG Seestrasse 16 CH-8700 Küsnacht Phone +41 (0)44 267 67 77 Fax +41 (0)44 267 67 78 info@bellevue.ch www.bellevue.ch 32
Slide 37: Caution Regarding Forward-looking Statements
Caution Regarding Forward-looking Statements The following information contains certain ‚forward-looking statements,‛ relating to the Company’s business, which can be identified by the use of forward-looking terminology such as ‚estimates,‛ ‚believes,‛ ‚expects,‛ ‚may,‛ ‚are expected to,‛ ‚will,‛ ‚w