Vz Holding Ag · SIX:VZN
Vz — FY2009 Earnings Presentation
24 slides from Vz's earnings presentation, Mar 9, 2010
Slide 1: Results and Outlook 2009
VZ Group VZ Holding Ltd Beethovenstrasse 24 CH-8002 Zurich Telephone: +41 44 207 27 27 Fax: +41 44 207 27 28 2009 vermoegenszentrum.ch vzonline.ch Results and Outlook Matthias Reinhart, Chairman & CEO Philipp Marti, CFO Zurich, 9 March 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: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 2
Slide 4: Summary 2009
Summary 2009 Milestones Financials • Business model stands the test in turbulent times • Top line +6.1% to CHF 110.1 million, bottom - independence > no conflict of interests line +9.5% to CHF 37.6 million - focus on on-shore markets - One-off reduction of personnel expenses by CHF 1.1 million • Ste
Slide 5: Revenues: return to growth path in 2H09
Revenues: return to growth path in 2H09 Full years in CHF million 103.8 110.1 94.4 13.1 13.9 • Overall revenue growth 6.1% 74.7 13.7 15.3 5.7 15.5 60.0 11.7 • Management fees up 9.8% 12.1 63.0 75.0 74.4 81.7 • Banking revenues unchanged despite interest 47.9 margin squeeze 2005 2006 2007 2008 2009 •
Slide 6: Revenues: unchanged segment distribution
Revenues: unchanged segment distribution in CHF million 100% = 60.0 74.7 94.4 103.8 110.1 11% 11% 10% 11% 11% 89% 89% 90% 89% 89% 2005 2006 2007 2008 2009 Corporate client segment Private client segment Page 5
Slide 7: Net profit: increase despite difficult 1H09
Net profit: increase despite difficult 1H09 Full years • Net profit plus 9.5% yoy (6.8% adjusted) 37.6** in CHF million 34.3 • Operational margin (EBITDA) 44% 33.2* 36.7 (adjusted: 43%) vs. 43% in 2008 25.7 • revenue growth rate 2009: 6.1% 18.0 • operating expense growth rate 2009: 3.1% (adjusted: 5
Slide 8: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook 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 31.12.07 31.12.08 31.12.09 5’058 5’133 5’152 AuM 5’760 5’456 6’717 - PM mandates 4’153 3’751 4’752 - Other* 1’607 1’705 1’965 NNM 891 590 940 (12 months) Number of 8’18
Slide 10: Private client segment: capacity growth on track
Private client segment: capacity growth on track Capacity growth Geographic expansion in 2009 Germany: München Full-time equivalents (FTE) with client and budget Frankfurt responsibility Nürnberg Schaffhausen Basel 2007 2008 2009 Baden Winterthur Liestal Zürich St. Gallen Aarau Financial Zug Rappers
Slide 11: VZ Depository Bank: rapidly growing client base
VZ Depository Bank: rapidly growing client base Number of clients • More than 80% of all portfolio management clients use VZ bank’s custodian services: – 73% of mandates dating back before the bank launch 7’401 – 92% of new portfolio management clients 6’008 • Increase of cash deposits to CHF 725 mi
Slide 12: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 11
Slide 13: Corporate client segment: affected by economic downturn
Corporate client segment: affected by economic downturn Premium volume under management in CHF million p.a. 252 243 • Revenues +7.2% yoy in 2009 vs. +21.2% in 2008 203 • Economic downturn curbs revenue growth in 2H09 172 – +12.5% in 1H09 yoy – +2.6% in 2H09 yoy • EBIT margin declined to 21.8% (2008:
Slide 14: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 13
Slide 15: Financials: income statements (1)
Financials: income statements (1) in CHF million* 2009 adj 2007** 2008 2009 adjusted*** yoy Consulting fees 13.0 13.3 12.5 -5.9% Banking revenues 5.7 15.5 15.3 -1.8% Management fees 75.0 74.4 81.7 +9.8% Other operating revenues 0.7 0.6 0.6 +4.1% Total operating revenues 94.4 103.8 110.1 +6.1% Person
Slide 16: Financials: income statements (2)
Financials: income statements (2) in CHF million* 2009 adj 2007** 2008 2009 adjusted*** yoy EBITDA 43.0 44.3 48.8 47.7 +7.5% Depreciation and amortisation (1.9) (2.3) (2.3) +0.4% EBIT 41.1 42.0 46.5 45.4 +7.9% Net finance income 0.3 0.3 (0.1) n.a. Profit before income tax 41.1 42.3 46.4 45.3 +6.9% I
Slide 17: Financials: operating expenses (1)
Financials: operating expenses (1) Personnel expenses in CHF million* 50% 35 • Revaluation of pension plan liabilities led to 44.3% 45% 41.2% 42.3% adjustments: one-off cost reduction by 30 40.6% CHF 1.1 million pre tax 38.6% 40.0%** 38.1% 40% 25 23.6** 21.9 21.1 22.6 22.5 • Personnel expense ratio
Slide 18: Financials: operating expenses (2)
Financials: operating expenses (2) Other operating expenses in CHF million* 16.7% 18% 16.5% • Operating expenses slightly lower than 16 16% previous year 14 15.0% 14% – lower marketing expenses 14.7% 14.4% 13.1% 12% – efficiency improvement 12 10 10% 8.6 8.4 • Leverage potential 7.9 7.8 8% 8 7.2 6.6
Slide 19: Financials: EBITDA and margin
Financials: EBITDA and margin EBITDA in CHF million* 48.7% 50% 46.9% 46.9%** • EBITDA: Increase from CHF 44.3 million 35 44.1% 44.4% to CHF 48.8 million (adjusted: CHF 47.7 million) 45% 30 41.0% 28.8 27.7** – decrease in 1H09 yoy by 6.0% 39.1% 23.4 40% – increase in 2H09 yoy by 24.7% (adjusted: 19.9
Slide 20: Financials: EBIT and margin
Financials: EBIT and margin EBIT in CHF million* 50% 46.9% • EBIT 2009: Increase of 10.5% (adjusted: 7.9%) 35 42.1% 44.9% 42.2% 45% – decrease in 1H09 yoy by 6.5% 38.9% 45.0%** 30 36.8% 27.7 40% – increase in 2H09 yoy by 26.2% 26.6** 22.3 (adjusted: 21.2%) 25 21.9 35% 20.1 18.8 18.8 20 30% • EBIT ma
Slide 21: Balance sheets
Balance sheets in CHF million* 31.12.09 31.12.08 Cash & cash equivalents 364.1 265.6 Short term investments 168.1 353.5 Marketable securities 0.8 0.8 • Balance sheet growth in 2009 due to Swiss prime residential mortgages 235.6 121.4 – customer deposits with VZ Depository CHF bonds 76.6 – Bank – ret
Slide 22: Equity & payout ratios
Equity & payout ratios Payout ratios 2007 2008 2009 Equity ratios 2007 2008 2009 in CHF million Net profit adjusted 33.2 34.3 36.7 Equity ratio 16.7% 14.5% 15.2% Retained earnings 21.2 22.3 23.3 BIS Tier I 20.2% 22.7% 21.9% Dividend total 12.0 12.0 13.4 BIS Tier II 20.2% 22.7% 21.9% Dividend per sha
Slide 23: Agenda
Agenda 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 • Private client segment • Revenues: plus 15 – 20%, if markets continue to normalise – grow consulting capacity in order to meet the undiminished demand • Operating expenses – increase NNM inflow per consultant by further developing the attractiven