Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot — Investor Presentation (May 2015)
32 slides from Kempen European High Dividend Fund N.V. N's investor presentation, May 2015
Slide 1: Transforming to a specialist wealth manager
Transforming to a specialist wealth manager Investor Presentation May 2015
Slide 2: Executive summary
Executive summary Van Lanschot’s profile Solid performance on all key financials 2014 2013 • One strategy: pure-play, independent wealth manager focusing on • Net profit € 108.7m € 33.5m preservation and creation of wealth for our clients • Net profit excluding pension gain € 54.2m € 33.5m • Dividen
Slide 3: Agenda
1. Profile of Van Lanschot 2. Annual results 2014 3. Trading update Q1 2015 Agenda Van Lanschot Investor Presentation - May 2015 3
Slide 4: 1. Profile of Van Lanschot
1. Profile of Van Lanschot Van Lanschot Investor Presentation - May 2015
Slide 5: Why wealth management?
Why wealth management? Building on our distinctive strengths Supported by demographics and economic fundamentals We can build on our inherent strengths in There is room for a high-quality, high-service, private and institutional wealth management independent wealth manager in the Benelux, by working
Slide 6: Independent specialist wealth manager
Independent specialist wealth manager Key fundamentals • Ageing population • Capital surplus economy • Low growth environment • High levels of prosperity These factors create a strong demand for superior wealth management services Distinctive offering and positioning of Van Lanschot • Private Bankin
Slide 7: Van Lanschot builds on the experience of its three core activities
Van Lanschot builds on the experience of its three core activities Private Banking Asset Management Merchant Banking • Private Bank of choice for high net- • Specialised European investment • Specialist services in brokerage, worth individuals, entrepreneurs and management boutique with a sharp merg
Slide 8: Our core activities work together in many ways
Our core activities work together in many ways and draw on the group’s strong foundations Investment beliefs Asset allocation Private Manager selection Banking Structured products Discretionary management Order execution Product development Asset Merchant Management Selective order execution Banking
Slide 9: The transformation takes several years; focus and simplification key themes
The transformation takes several years; in the first period focus and simplification were the key themes 2013 2015 2017 • Creation of Corporate Banking to run-down First results corporate loan book • Strong capital base • Introduction of Evi van Lanschot, our online savings and investments solution
Slide 10: Growth of core activities and run off Corporate Banking
Growth of the core activities and run off Corporate Banking will be the themes for the coming period 2013 2015 2017 • Private Banking: growth in investment services and mortgages, supported by marketing campaigns and extension of online possibilities Core activities • Asset Management: further grow
Slide 11: Listed on the Amsterdam stock exchange with a stable shareholder base
Van Lanschot is listed on the Amsterdam stock exchange and has a stable shareholder base Ordinary shares & depositary receipts Holders of depositary receipts • Van Lanschot’s issued share capital consists of ordinary shares A which are held by Stichting Administratiekantoor van gewone aandelen A Van
Slide 12: Solid profile reflected in its creditworthiness
Van Lanschot’s solid profile is reflected in its creditworthiness Fitch Standard & Poor’s • Long-term credit rating: A- • Long-term credit rating: BBB+ • Outlook long-term credit rating: Negative • Outlook long-term credit rating: Stable • Short-term credit rating: F2 • Short-term credit rating: A-2
Slide 13: 2. Annual results 2014
2. Annual results 2014 Van Lanschot Investor Presentation - May 2015
Slide 14: Highlights 2014 annual results
Highlights 2014 annual results Net profit of € 108.7 million; proposed dividend of € 0.40 per share Solid profit • Net profit of € 54.2 million (+62%) excluding one-off gain from pension scheme change • Income from operating activities +3% growth in • Operating expenses +2% 2014 • Loan loss provisio
Slide 15: Key figures 2014 annual results
Key figures 2014 annual results € million 2014 2013 Δ Commission 240.3 234.8 Interest 213.7 213.9 Other income 93.0 81.1 Income from operating activities 547.0 529.8 3% Operating expenses 381.7 374.9 One-off gains 60.3 -8.0 Gross result after one-off gains 225.6 146.9 54% Gross result before tax of
Slide 16: All core activities contribute to our net profit
All core activities contribute to our net profit Operating income by segment Net profit (excluding one-off gain pension € million scheme change) is € 54.2 mln (+62%) • The core activities, Private Banking, Asset Management and Merchant Banking, generate 75% of the operating income • The core activit
Slide 17: Solid net profit development
Solid net profit development Key drivers of net profit in 2014 Net profit (excluding one-off gain pension € million scheme change) is € 54.2 mln (+62%) • Increase in commission income driven by growth in management fees (both Private Banking and Asset Management) and fees Merchant Banking • Interest
Slide 18: Commission income increases as well as share of recurring income
Commission income increases as well as share of recurring income Total commission income Total commission income € million 100% = € 240.3 million • Securities commission increases as higher management fees offset lower transaction commissions, resulting from the introduction of the new fee structure
Slide 19: Interest income stable versus 2013
Interest income stable versus 2013 Interest income € million • Interest income of € 213.7 million is almost at same level as 2013. The interest margin development was relatively stable versus 2013 with 4 basis points decline to 119 basis points • The decline of corporate loan book and mortgages port
Slide 20: Other income increases to € 93.0 million
Other income increases to € 93.0 million Other income Profit on financial transactions € million • Profit on investment portfolio (€ 47.2 million) increased compared to 2013 (€ 26.4 mln) due to decreasing interest rates and credit spreads • Overall the profit on financial transactions decreased vers
Slide 21: On track to realize efficiency ratio target in 2017
On track to realize efficiency ratio target in 2017 Operating expenses • After a total reduction in operating € million expenses of 9% in 2012 and 2013, operating expenses of € 381.7 million were realized in 2014 including the resolution levy related to SNS • Van Lanschot continues to invest in its
Slide 22: Strong market performance supports client assets growth
Strong market performance supports client assets growth Client assets Development client assets: Private Banking Client assets grow 7% to € 57.4 billion € billion € billion • Savings & deposits increase by € 0.3 billion mainly due to Evi in Belgium • Assets under management are up 9% in 2014, mainly
Slide 23: Evi van Lanschot had an excellent first year
Evi van Lanschot had an excellent first year • Evi, our online savings and investment coach, was launched in Q4 2013 offering: • online discretionary management in the Netherlands • investment advice with an online coach in the Netherlands • online savings account in the Netherlands and Belgium • At
Slide 24: Deleveraging of loan book continues; run-off Corporate Banking ahead of schedule
Deleveraging of loan book continues; run-off Corporate Banking ahead of schedule Loan book per 31-12-2014 Total loan book (€ 11.0 billion) reduced by 100 % = € 11.3 billion (excluding provisions) 12% in 2014. Run-off Corporate Banking is ahead of schedule Mortgages • Early repayment of mortgages con
Slide 25: Loan loss provisioning continues to trend down
Loan loss provisioning continues to trend down Additions to loan loss provision down 26% to € Additions to loan loss provision 76.0 million in 2014 € million Private Banking • Loan loss provisioning considerably lower in 2014 (€ 8.9 million versus € 34.2 million in 2013) • Mortgage portfolio with li
Slide 26: Other impairments increase to € 19.5 million
Other impairments increase to € 19.5 million Development other impairments € million • Other impairments increase to € 19.5 million. In 2013 impairments were positively influenced by a reversal of € 5.6 million related to property • Other impairments relate to revaluation of : • properties for own u
Slide 27: Balance sheet with strong capital and funding position
Balance sheet with strong capital and funding position Significant capital buffer • Total equity of € 1.35 billion, of which € 1.19 billion in share capital and Balance sheet 31 December 2014 reserves € billion, balance sheet total = € 17.3 billion • Common Equity Tier I ratio (phase-in) 14.6% Cash
Slide 28: Increase of Common Equity Tier I ratio
Increase of Common Equity Tier I ratio Risk-weighted assets Risk-weighted assets € billion • Corporate Bank run-off above target with RWA reduction of € 0.8 billion • Total RWA reduced with € 1.6 billion in 2014 (- 18%) • Common Equity Tier I ratio 14.6 % Van Lanschot meets the Basel III capital req
Slide 29: On track to achieve financial targets 2017
On track to achieve financial targets 2017 Common Equity Tier I ratio* 14.6% 15.0% 13.1% 31-12-13 31-12-14 31-12-17 Return on Common Equity Tier I** 10 – 12% 2.5% 4.0% 2013 2014 2017 Efficiency ratio 60 - 65% 70.8% 69.8% 2013 2014 2017 * 2013 based on Basel II. 2014 reflects Common Equity Tier I-rat
Slide 30: 3. Trading update Q1 2015
) {z+ Van Lanschot 3. Trading update Q1 2015
Slide 31: Developments in Q1 2015
Developments in Q1 2015 • Matches first-quarter 2014 levels Positive result • In line with our transformation into a wealth manager Increase in client • Client assets grow with €4.3 billion to €61.7 billion assets • Common Equity Tier I-ratio* amounts to 14.2% Strong capital base • Leverage ratio (f
Slide 32: Disclaimer
Disclaimer Disclaimer and cautionary note on forward-looking statements This presentation contains forward-looking statements on future events. These forward-looking statements are based on the current information and assumptions of Van Lanschot’s management about known and unknown risks, developmen