EFG International AG · SIX:EFGN
EFG International — H1 2006 Earnings Presentation
34 slides from EFG International's earnings presentation, Aug 23, 2006
Slide 1: 1H 2006 Results
1H 2006 Results Lawrence D. Howell, CEO Rudy van den Steen, CFO Zurich, 23 August 2006
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by EFG International solely for use by you for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for or purchase any securities regarding EFG Intern
Slide 3: Business Overview
Business Overview Lawrence Howell, CEO
Slide 4: First Half 2006 Highlights – CROs and AUMs
First Half 2006 Highlights – CROs and AUMs 1H 2006 1H 2005 Δ (%) Client Relationship Officers (CROs) 323 180 +79% CROs incl. announced acquisitions 356 226(1) +58% Clients´ Assets under Management (AUM) CHF 53.8 bn(2) CHF 25.6 bn +110% AUM incl. announced acquisitions CHF 59.6 bn(2) CHF 36.3 bn(1) +
Slide 5: First Half 2006 Highlights – Financials
First Half 2006 Highlights – Financials 1H 2006 1H 2005 Δ (%) Operating Income CHF 288.6 m CHF 140.6 m +105% Operating Profit (1) CHF 124.1 m CHF 60.3 m +106% Net Profit CHF 100.7 m CHF 50.1 m +101% Net Profit attributable to ordinary CHF 88.4 m CHF 30.4 m +191% shareholders Cost-Income Ratio 57.0%
Slide 6: First Half 2006 Highlights – Acquisitions
First Half 2006 Highlights – Acquisitions Capital Management Advisors (CMA) – Bermuda based fund of hedge fund manager (closed February, 2006) - Enhanced product expertise for EFG International, adding CHF 2.1 bn AUM - For the first-half 2006, CMA contributed CHF 10.2 million to net profit - Revenue
Slide 7: First Half 2006 Highlights (cont’d)
First Half 2006 Highlights (cont’d) Further expanding geographical presence - Opened banks in the Bahamas and Luxembourg, a branch in Dubai and a representative office in Indonesia (Jakarta) - Applications pending to open further offices in the Philippines (Manila) and Thailand (Bangkok) - Opened a
Slide 8: First Half 2006 Highlights (cont’d)
First Half 2006 Highlights (cont’d) Progress has been recognised by rating agencies - Fitch assigned inaugural rating for EFG International of 'A with positive outlook' - Moody´s assigned inaugural rating for EFG International of 'A2 with stable outlook' - EFG International as bank holding has been
Slide 9: Key Performance Indicators
Key Performance Indicators 1H 2006 vs 1H 2005 1H 2006 vs 2H 2005 including announced acquisitions including announced acquisitions as per period end as per period end 191% 105% 105% 104% 100% 82% 66% 105% 106% 101% 46% 46% 42% 64% 45% 45% 33% 41% 58% 26% 22% 10% CROs AUM Total Gross Net Profit Reven
Slide 10: Continued strong growth in number of CROs
Continued strong growth in number of CROs Number of CROs including announced acquisitions as per period end 350 356 300 323 268 250 200 226 160 150 180 130 100 90 80 50 50 0 2000 2001 2002 2003 2004 1H 2005 2005 1H 2006 Including the announced acquisitions of Banque Monégasque de Gestion (6) and Har
Slide 11: Continued strong growth in AUM
Continued strong growth in AUM Clients’ Assets under Management and Administration AUM & AUA including announced acquisitions AUM including announced acquisitions 66.3 AUM as per period end (Data in CHF bn) 59.6 53.8 53.8 47.3 42.7 36.3 22.1 20.1 25.6 8.6 9.1 5.3 2000 2001 2002 2003 2004 1H 2005 200
Slide 12: AUM Breakdown and 1st Half 2006 AUM Growth
AUM Breakdown and 1st Half 2006 AUM Growth(1) 5'338 2'062 53'833 EFG International 7% Shares 47'316 4'600 (NNA) EFGI - 883 2% Other 8% Shares 738 (CL) 10% Loans 3% Other 10% Loans 15% Third Party Funds 11% Third Party Funds 6% EFG Funds (2) 2% EFG Funds 11% Equities 14% Equities 12% Structured Notes
Slide 13: Financials Overview
Financials Overview Rudy van den Steen, CFO
Slide 14: Organic and External Growth of Client’s AUM - June 30, 2006
Organic and External Growth of Client’s AUM - June 30, 2006 Clients’ Assets under Management and Administration (Data in CHF bn) CHF 60.5 CHF 53.8 6.7 CHF 53.8 CHF 47.3 6.5 3.5 3.7 CHF 43.7 CHF 50.3 24.2 21.9 CHF 22.1 CHF 20.1 9.0 CHF 9.1 8.5 CHF 8.6 26.1 CHF 5.3 21.7 Organic 1.7 1.7 Acquisitions 11
Slide 15: 1H06 vs. 1H05 and 2H05 – Consistent Growth
1H06 vs. 1H05 and 2H05 – Consistent Growth 1H 2006 2H 2005 1H 2005 Operating Income CHF 288.6 m CHF 197.8 m CHF 140.6 m Profit before Tax CHF 114.6 m CHF 81.1 m CHF 57.0 m Net Profit CHF 100.7 m CHF 70.8 m CHF 50.1 m Net Profit attr. to ordinary CHF 88.4 m CHF 53.2 m CHF 30.4 m shareholders Cost-Inc
Slide 16: Revenues more than doubled versus first-half of 2005
Revenues more than doubled versus first-half of 2005 1H 2005 vs 1H 2006 (CHF mn) 2H 2005 vs 1H 2006 (CHF mn) +46% +105% 288.6 288.6 197.8 140.6 1H 05 1H 06 2H 05 1H 06 Revenues prior to the impact of acquisitions have Similarly, organic growth 2H05 vs 1H06 amounted grown organically by approx. 50% w
Slide 17: Strong Net Profit growth
Strong Net Profit growth 1H 2005 vs 1H 2006 (CHF mn) 2H 2005 vs 1H 2006 (CHF mn) Net Profit Net Profit 100.7 100.7 +42% +101% 70.8 50.1 1H 05 1H 06 2H 05 1H 06 Net Profit attributable to ordinary shareholders Net Profit attributable to ordinary shareholders 88.4 88.4 +66% +191% 53.2 30.4 1H 05 1H 06
Slide 18: Strong Revenue Momentum
Strong Revenue Momentum (In CHF million) 1H05 1H06 Δ vs. 1H05 Net interest income 38.7 77.9 101% Net banking fee and 83.7 175.3 109% commission income Net trading & other 18.1 35.4 95% income Operating income 140.6 288.6 105% Net interest income doubled year-on-year as a result of: - Substantial inc
Slide 19: Cost–Income Ratio remained unchanged despite accelerated growth
Cost–Income Ratio remained unchanged despite accelerated growth % of Operating income (In CHF million) 1H05 1H06 %Δ 1H05 1H06 Personnel expenses (57.6) (118.2) 105% 41.0% 41.0% Other operating expenses (22.7) (46.3) 104% 16.1% 16.0% excl. D&A Operating expenses (80.3) (164.5) 105% 57.1% 57.0% before
Slide 20: Net profit attributable to ordinary shareholders up 191%
Net profit attributable to ordinary shareholders up 191% (In CHF million) 1H05 1H06 Δ vs. 1H05 Profit before tax 57.0 114.6 101% Income tax expense (6.9) (13.9) 101% Net profit for the period 50.1 100.7 101% Estimated preference dividend (19.7) (12.3) -38% on Fiduciary Certificates Net profit attrib
Slide 21: AUM Profitability stands at 37 bps
AUM Profitability stands at 37 bps AUM-Related Ratios (% of average AUM) 1H06 1H06 Annualised Total Revenues CHF 288.6 m 121 bps Operating Profit CHF 124.1 m 52 bps Net Profit CHF 100.7 m 42 bps Net Profit attributable to ordinary CHF 88.4 m 37 bps shareholders All AUM-Related Ratios are based on av
Slide 22: Balance Sheet development in line with AUM growth
Balance Sheet development in line with AUM growth (In CHF million) as of Dec. 31, 2005 As of June 30, 2006 Δ (in %) Loans and advances to customers 4,544 5,282 +16% Intangible assets 351 603 +72% Due to customers 7,711 9,085 +18% Total shareholders‘ equity 2,082 2,143 +3% Risk Weighted Assets 3,410
Slide 23: Outlook on M&A Activities
Outlook on M&A Activities Evaluation of acquisition opportunities in onshore Europe, the Americas, the Middle East and Switzerland Since the IPO CHF 10.1 billion of AUM acquired Expected acquisition volume of CHF 10-15 billion for both 2007 and 2008 Excess Tier 1 Capital capacity for carrying increm
Slide 24: Conclusion
Conclusion Lawrence Howell, CEO
Slide 25: Strategic Goals - the CRO Model in Context
Strategic Goals - the CRO Model in Context Starting Date to Starting Date to CRO Model - 30/06/05 (management 30/06/06 (management Objectives estimate)* estimate)** Average Annualised Increase in AUM per CHF 30 mn Above CHF 35 mn Above CHF 40.0 mn CRO Average Annualised Increase in Revenues per CHF
Slide 26: Strategic Goals
Strategic Goals Previously 1H 2005 1H 2006 Announced 2007 2008 Status Status Medium-Term Strategic Goals Strategic Goals Targets CROs 180 / 226 (1) 323 / 356 ~ 500 500 - 525 650 - 675 AUM Growth Above CHF Above CHF CHF 30 m CHF 30 m CHF 30 m per CRO 35.0 m 40.0 m per year per year per year CHF 10.1
Slide 27: Strategic Goals (cont’d)
Strategic Goals (cont’d) Previously 1H 2005 1H 2006 Announced 2007 2008 Status Status Medium-Term Strategic Goals Strategic Goals Targets Assets under CHF 25.6 bn / CHF 50.3 bn (2) / CHF 115-125 bn (2) CHF 60-65 bn (2) CHF 87-93 bn (2) Management CHF 36.3 bn (1) CHF 56.1 bn (2) Revenue 1.18% of 1.21
Slide 28: Appendix
Appendix
Slide 29: Definition: Average AUM
Definition: Average AUM The consolidated 1H 2006 financial results of EFG International reflect the full operations of EFG International and its subsidiaries during the first half of the fiscal year 2006. The financial results of Capital Management Advisors (CMA), Bermunda and the financial results
Slide 30: M&A Announcements since the IPO
M&A Announcements since the IPO Acquisition Date of Announcement Total AUM Chiltern Wealth Management 9 November 2005 CHF 0.6 billion Bank von Ernst (Liechtenstein) AG 10 November 2005 CHF 1.6 billion Capital Management Advisors (CMA) 13 February 2006 CHF 2.1 billion Banque Monégasque de Gestion 19
Slide 31: EFG Group and EFGI in „The Bankers Magazine“ Ranking
EFG Group and EFGI in „The Bankers Magazine“ Ranking Top Swiss Banks Ranking Strength Soundness Profits Ranking (as of December 31, 2005) Tier-1 Capital Capital assets ratio Real profits growth $m % change rank % rank % change 1 UBS 30,391 28.6 35 1.94 11 20.9 2 Credit Suisse Group 20,047 7.1 34 1.9
Slide 32: CRO Statistics
CRO Statistics AUM* per CRO** Revenue per Average CRO** (In CHF million) (In CHF million) 1.94 1.73 (annualised revenues) 1.63 163 156 138 323 296 268 195 160 145 2004 2005 1H 2006 2004 2005 1H 2006 (1) CROs AUM per CRO Avg. CROs for the period Revenue per Avg. CRO (1) Time-weighted * As of period-e
Slide 33: Consolidated Income Statement (unaudited)
Consolidated Income Statement (unaudited) (In CHF million) 1H05 2H05 1H06 Δ vs. 1H05 Δ vs. 2H05 Net interest income 38,740 52,180 77,860 101% 49% Net banking fee and commission income 83,748 125,223 175,261 109% 40% Net trading income 17,554 20,844 34,668 97% 66% Other operating income / (expense) 5
Slide 34: Consolidated Balance Sheet (unaudited)
Consolidated Balance Sheet (unaudited) (In CHF ´000) Dec 2005 June 2006 Δ vs. Dec 2005 Cash and balances with central banks 42,888 81,058 89% Treasury bills and other eligible bills 488,970 446,969 -9% Due from other banks 3,744,459 4,064,578 10% Trading securities 7,836 8,483 8% Derivative financia