Vz Holding Ag · SIX:VZN
Vz — FY2008 Earnings Presentation
23 slides from Vz's earnings presentation, Mar 10, 2009
Slide 1: Results and Outlook 2008
VZ Group VZ Holding Ltd Beethovenstrasse 24 CH-8002 Zurich Telephone: +41 44 207 27 27 Fax: +41 44 207 27 28 2008 vermoegenszentrum.ch vzonline.ch Results and Outlook Aarau Basle Matthias Reinhart, Chairman & CEO Berne Frankfurt Philipp Marti, CFO Geneva Lausanne Lucerne Munich Neuchâtel Rapperswil
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 2008
Summary 2008 Milestones Financials • Inflow of new clients undiminished • Top line +10%, bottom line +3% • Successful VZ Depository Bank • Banking revenues overcompensate lower management fees caused by financial crisis • GIPS® certificate for wealth management services • Operating expenses grow fas
Slide 5: Revenues: slower growth
Revenues: slower growth Full years in CHF million 103.8 94.4 13.9 • Financial crisis affects growth momentum: 13.7 74.7 5.7 15.5 increase by 10% in 2008 vs. 26% in 2007 60.0 11.7 47.0 12.1 • Banking revenues almost triple 9.8 75.0 74.4 63.0 37.2 47.9 • Management fees decrease by 0.8% 2004 2005 2006
Slide 6: Revenues: steady segment distribution
Revenues: steady segment distribution in CHF million 100% = 47.0 60.0 74.7 94.4 103.8 13% 11% 11% 10% 11% Slight increase of the corporate client segment’s share • Strong growth of corporate client segment revenues (+ 21%) 87% 89% 89% 90% 89% • Slower growth of private client segment (+ 9%) due to f
Slide 7: Net profit stagnates
Net profit stagnates Full years • Increase of 3% in 2008 vs. 29% in 2007 (adjusted) in CHF million 34.3 • Operational margin (EBITDA) slightly lower at 43% 33.2* (2007 adj. : 46%) 25.7 30.6 – revenue growth rate 2008: 10% 18.0 – operating expenses growth rate 2008: 16% 10.8 (2007 adj.) • Net profit
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 Assets under management (in CHF million) Portfolio management mandates Mortgages under management and 2‘512 2’546 2’560 2’573 portfolios under client management Net new money (6 month
Slide 10: Private client segment: capacity growth on track
Private client segment: capacity growth on track Capacity growth Geographic expansion in 2008 Frankfurt Full-time equivalents (FTEs) with client and budget Munich responsibility Basle Aarau Winterthur Zurich St. Gallen 2006 2007 2008 Rapperswil Zug Lucerne Financial 30.7 37.4 43.8 Neuchâtel Berne co
Slide 11: VZ Depository Bank: successful 2008
VZ Depository Bank: successful 2008 Benefits Status as at 31.12.2008 • Benefits for clients • Banking revenues account for 17% of segment – lower transaction fees revenues (15% of total revenues) – lower custody fees • 80% of all portfolio management clients use – higher interest rates on cash accou
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: strong growth
Corporate client segment: strong growth Premium volume under management in CHF million p.a. 243 • Strong results 203 – revenue growth of 21% yoy – contribution to overall results 172 • 11% to total revenues (2007: 10%) • 6% to total EBIT (2007 adj.: 4%) – EBIT margin improved to 24% (2007adj.: 16%)
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* 2007 2007 yoy 2006 2008 adjusted** 2007 adj.** Consulting fees 11.0 13.0 13.0 13.3 +2.3% Banking revenues n/a 5.7 5.7 15.5 +173.7% Management fees 63.0 75.0 75.0 74.4 -0.8% Other operating revenues 0.7 0.7 0.7 0.6 -18.3% Total operating revenues 74.7
Slide 16: Financials: income statements (2)
Financials: income statements (2) in CHF million* 2007 2007 yoy 2006 2008 adjusted** 2007 adj.** EBITDA 32.6 40.1 43.0 44.3 +3.2% Depreciation and amortisation (1.3) (1.9) (1.9) (2.3) +21.7% EBIT 31.3 38.2 41.1 42.0 +2.3% Net finance income 0.4 0.3 0.3 0.3 +3.0% Profit before income tax 31.7 38.5 41
Slide 17: Financials: operating expenses (1)
Financials: operating expenses (1) Personnel expenses in CHF million* 50% 46.5%** 35 • Increase of 14% yoy (2007 adj.) 45% 41.0% 41.2% 42.3% 30 40.6% 38.6% • Lower costs recorded in 2H08 vs. 1H08 41.2% 40% 25 20.8** 21.9 21.1 (- CHF 0.8 million), because variable salary 20 18.4 19.2 35% components 2
Slide 18: Financials: operating expenses (2)
Financials: operating expenses (2) Other operating expenses in CHF million* 16.7% 18% 15.1% 16.0%** 16 16% • Increase of 20% yoy (2007 adj.), mainly because 15.4% 15.0% 14% VZ bank has been operational for a full 12 months 14 14.7% 14.4% in 2008 12 12% 10 10% 8.6 • Cost reduction in 2H08 vs. 1H08 by
Slide 19: Financials: EBITDA and margin
Financials: EBITDA and margin EBITDA in CHF million* 50% • EBITDA: Increase of 3% yoy (2007 adj.) 46.9% 35 43.8% 44.1% 44.4% 45% • Improvement in 2H08 vs. 1H08 by CHF 1.9 million, 30 41.0% mainly due to lower costs 43.4% 37.5%** 40% 25 23.4 23.1 21.2 • EBITDA margin: 42.7% in 2008 (2007 adj.: 45.5%)
Slide 20: Financials: EBIT and margin
Financials: EBIT and margin EBIT in CHF million* 50% • EBIT: increase of 2% yoy (2007 adj.) 35 42.2% 42.1% 44.9% 42.2% 45% 38.9% • Improvement in 2H08 vs. 1H08 by CHF 1.8 million 30 35.6%** 40% 41.6% 25 22.3 21.9 35% 20.1 • EBIT margin: 40.5% in 2008 (2007 adj.: 43.5%) 18.8 20 30% 15.3 16.0 15 25% •
Slide 21: Balance sheets
Balance sheets in CHF million* 31.12.08 31.12.07 Cash & cash equivalents 265.6 374.2 Short term investments 353.5 114.1 Marketable securities 0.8 26.1 Swiss prime residential mortgages 121.4 0.2 • Balance sheet growth in 2008 due to Subtotal financial investments 741.3 514.7 VZ Depository Bank Prope
Slide 22: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 21
Slide 23: Outlook 2009
Outlook 2009 Business development Financial targets • Private client segment • Revenues – further develop banking unit with attractive – private client segment: low increase, if markets services for financial consulting clients stabilise – grow mortgage servicing business – corporate client segment: