Bellevue Group Ag · SIX:BBN
Bellevue — FY2008 Earnings Presentation
40 slides from Bellevue's earnings presentation, Mar 6, 2009
Slide 1: Media and Analyst Presentation
Media and Analyst Presentation Friday, March 6th 2009, 9:30 am at SIX Zurich
Slide 2: Agenda
Bellevue Group Agenda Introduction Martin Bisang 2 Financial Results 2008 Daniel Koller 4 Strategy Bellevue Group Martin Bisang 13 Bank am Bellevue Jürg Schäppi 21 Bellevue Asset Management Hans-Peter Diener 30 Contact 39 1
Slide 3: Introduction
Bellevue Group Introduction • No leverage • No proprietary trading • No exposure to toxic assets • Fundamental and independent research • Still profitable • 58% employee owned Bellevue is different – Bellevue is quality 2
Slide 4: Executive Board
Bellevue Group Executive Board Bellevue Group AG Martin Bisang, CEO Daniel Koller, CFO Bellevue Asset Management AG Bank am Bellevue AG Hans-Peter Diener, CEO Jürg Schäppi, CEO Healthcare Growth Corporate Brokerage Franchise Opportunities Finance 3
Slide 5: Financial results 2008
Financial resu BELLEVUE |
Slide 6: Key figures
Financial results 2008 Key figures CHF million 2007 2008 Change Net profit recurring 72.0 26.9 -63% Net profit non-recurring items 88.4 -2.4 n.m. Net profit 160.4 24.5 n.m. Cost/income ratio recurring1 42.6% 50.1% +7.5 pp Net profit per share recurring 6.85 2.56 -60% Total client assets 6‘491 4’382
Slide 7: Profit & loss statement
Financial results 2008 Profit & loss statement CHF million 2007 2008 Recurring Non- Recurring Non- Change recurring recurring recurring Total operating income 159.4 88.4 80.9 -2.2 -49% Personnel expense -43.9 - -22.3 - -49% General expense -24.2 - -18.2 - -25% Depreciation and provisions -7.6 - -7.0
Slide 8: Segment results (recurring)
Financial results 2008 Segment results (recurring) CHF million 2007 2008 Bank am Asset Group Bank am Asset Group Bellevue Mgmt Bellevue Mgmt Total operating income 90.5 66.8 2.1 60.6 19.0 1.3 Personnel expense -21.9 -19.0 -3.0 -10.2 -9.3 -2.8 General expense -10.6 -6.6 -7.0 -9.5 -5.8 -2.9 Depreciati
Slide 9: Operating income
Financial results 2008 Operating income CHF million 2007 2008 Recurring Non- Recurring Non- Change recurring recurring recurring Net interest income 10.7 - 9.0 - -18% Net fee and commission income 143.0 - 71.0 - -50% Trading income 5.7 - 0.6 - -83% Other income - 88.4 0.3 -2.2 n.m. Total operating i
Slide 10: Net fee and commission income
Financial results 2008 Net fee and commission income CHF million 2007 2008 Change Recurring Recurring Net fee and commission income 143.0 71.0 -50% 11 Other fees Performance fees Management fees 46 -73% Brokerage and Corporate Finance • Brokerage main contributor -100% fees • Corporate Finance activ
Slide 11: Cost-income ratio remains very competitive
Financial results 2008 Cost-income ratio remains very competitive CIR in % (recurring, before taxes, depreciation and amortization) 80 74.2 73.6 67.5 70 61.3 58.8 * 60 55.8* 50.1 50 40 28.1* 30 20 10 0 Sarasin Vontobel EFG Julius Bär VZ BCV Partners Bellevue Group Group * Estimates 10
Slide 12: Strong balance sheet
Financial results 2008 Strong balance sheet CHF million 2007 2008 Change Assets Intangible fixed assets 66 60 -9% Goodwill 160 160 0% Total assets 1‘034 983 -5% Liabilities Total shareholders’ equity (before dividend) 478 455 -5% Capital ratios* • Tier 1 capital 239 191 n.m. • Risk-weighted assets 2
Slide 13: High pay-out ratio backed by surplus capital
Financial results 2008 High pay-out ratio backed by surplus capital 2006 2007 2008* Change Dividend per share (CHF) 5.0 6.0 4.0 -33% Dividend total (CHF million) 52.0 63.0 42.0 -33% Pay-out ratio (recurring) 84% 87% 145% Dividend yield (as per 03.03.09) 7.8% 11.8% * Proposal of the Board of Director
Slide 14: Strategy Bellevue Group
Strategy Bellevue Group 13
Slide 15: Financial crisis offers tremendous opportunities
Strategy Bellevue Group Financial crisis offers tremendous opportunities 1. Financial service providers are shaken worldwide → Bellevue Group realized a net profit of 24.5 million in 2008 2. Clients have lost confidence → Bellevue Group had no subprime exposure, no Madoff, no excessive compensation
Slide 16: Growth strategy focused on Bellevue Asset Management
Strategy Bellevue Group Growth strategy focused on Bellevue Asset Management Bellevue Group AG Martin Bisang, CEO Daniel Koller, CFO Bellevue Asset Management AG Bank am Bellevue AG Hans-Peter Diener, CEO Jürg Schäppi, CEO Healthcare Growth Corporate Brokerage Franchise Opportunities Finance 15
Slide 17: Asset Management industry overview
Strategy Bellevue Group Asset Management industry overview Industry change will be driven by a progressing separation between “Producers” and “Gate-keepers” Gate-keepers Producers Wholesale (Institutionals, HNWI‘s (investment management) distributors or private banks) Recent • Significant reduction
Slide 18: Positioning options for Bellevue Asset Management
Strategy Bellevue Group Positioning options for Bellevue Asset Management Future winners in the Asset Management industry will need to have a clear production focus Single product • “Packagers”/ETF-producers • Focused specialist & - State Street innovators - BGI - GAM • “Fund factories“ - Carmignac
Slide 19: Organization & structure – Generic view
Strategy Bellevue Group Organization & structure – Generic view Status quo Shift to value driver oriented structure along competencies BB BIOTECH BB MEDTECH BB Capital Mix of legal entity & „wrapper“-view Approach Wrapping Distribution Investment & & Management Admin Marketing Asset Asset Pooling As
Slide 20: Recruiting only the best
Strategy Bellevue Group Recruiting only the best 19
Slide 21: Shareholder structure still dominated by employees
Strategy Bellevue Group Shareholder structure still dominated by employees 57 shareholders per 31.12.04 (non-listed) 1’393 registered shareholders per 31.12.08 100% of shares with Bellevue employees 58% 25% external employees shareholders 17% non-registered shareholders 20
Slide 22: Bank am Bellevue
Bank am Bellevue 21
Slide 23: Comparison commission income vs. SMI
Bank am Bellevue Comparison commission income vs. SMI CHF million SMI 90 10’000 80 9’000 SMI 8’000 70 7’000 60 6’000 50 5’000 40 4’000 B 30 3’000 20 2’000 10 1’000 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 22
Slide 24: Turnover at SIX
Bank am Bellevue Turnover at SIX Turnover (CHF billion) 30 27.1 -35% 25 20.0 20 17.5 16.6 15 10 5 0 2005 2006 2007 2008 23
Slide 25: Commission income reflects quality of advice
Bank am Bellevue Commission income reflects quality of advice CHF million Custody fee 90 Corporate Finance 80 77.4 Brokerage/placements -30% 5.6 70 65.4 4.1 12.1 60 8.1 53.6 50 4.0 7.3 40 30 59.7 53.2 20 42.5 10 0 2006 2007 2008 24
Slide 26: Performance of broker research
Bank am Bellevue Performance of broker research Performance versus SMI & SPI % 330 280 230 180 „BB all recommendations“ 130 outperformed in 16 out of 20 quarters (since inception) 80 2004 2005 2006 2007 2008 BB all Top 5 SMI SPI 25
Slide 27: Established organisation
Bank am Bellevue Established organisation Comment Research • 130 shares covered New Head of Research: Johannes Borner • 11 analysts Sales • 9 sales professionals • Substantial extension of geographic reach • 100 institutional clients generate through bridge-head in the US 80% of commission income, •
Slide 28: Corporate Finance
Bank am Bellevue Corporate Finance Comment Team • Senior team • 6 professionals • International experience • On average 10 years of • Expertise in M&A and Capital Markets Corporate Finance experience Our principles • Focus on Swiss small- and mid-caps • Innovative • Client focus and experience lead
Slide 29: Corporate Finance 2008 market share & positioning
Bank am Bellevue – Corporate Finance 2008 market share & positioning Swiss equity issues (lead mandates only) Swiss M&A Rank Name Amount (USD mn) Issues Rank Name Deal Count Amount (USD mn) 1 Credit Suisse 7 45 819 1 BNP Paribas* 3837 1 1 UBS 7 9464 1 Goldman Sachs* 3837 1 3 Citi Group 3 37 753 1 JP
Slide 30: Selected tombstones 2008
Bank am Bellevue – Corporate Finance Selected tombstones 2008 Behr Deflandre & Snozzi BDS AG November 2008 November 2008 July 2008 CHF 290 million CHF 50 million June 2008 CHF 350 million June 2008 BB MEDTECH CHF 65 million CHF 38 million Public tender offer for 100% Tender offer by Paramount Share
Slide 31: Bellevue Asset Management
Bellevue Asset Management 30
Slide 32: Development of AuM & margins
Bellevue Asset Management Development of AuM & margins AuM Management fee margins CHF million bps 4’000 100 3’454 3’500 90 -240 3’000 80 -380 +253 2’627 Discontinuation 70 2’500 of unprofitable, non-scalable business +12% 58 Capital reduction Ongoing client 60 on closed-ended money inflow 52 2’000 f
Slide 33: Stable income on management fee
Bellevue Asset Management Stable income on management fee CHF million 90 Performance fee Management fee 80 70 65.3 60 50 39.9 45.8 40 30 16.9 20 18.0 10 23.0 19.5 18.0 0 2006 2007 2008 32
Slide 34: Delivering solid performance
Bellevue Asset Management Delivering solid performance In traditional core franchise healthcare… …as well as in new niche & growth areas BB BIOTECH - CHF 19/2/09 TOROS Prime 130 130 120 120 110 110 100 100 90 90 80 80 70 70 60 60 50 50 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC BB BIOTECH N (~S
Slide 35: Basic strategy and profile (I)
Bellevue Asset Management Basic strategy and profile (I) Independent and highly specialized AM boutique with a focus on true and pure active management • “Fundamental quality”: Research-driven stock-picking approach in very selected sectors and theme-driven single fund strategies • Strong foothold:
Slide 36: Basic strategy and profile (II)
Bellevue Asset Management Basic strategy and profile (II) • Manifold client needs: Development of products and solutions with strong focus on recurring revenues and delivery of multiple product designs/jurisdictions • Translucent products: Easy to understand, transparent, liquid and comprehensive pr
Slide 37: Strengthening & leveraging the healthcare franchise
Bellevue Asset Management Strengthening & leveraging the healthcare franchise Investment professionals & skills Products & solutions asdf 1993 – 2008 asdf 1993 – 2008 Healthcare 1993 – 2008 Closed-ended Funds Alternative Investment Funds • BB BIOTECH • BB BIOTECH Ventures • BB MEDTECH • BB BIOTECH V
Slide 38: Enlarging footprint into new niche & growth areas
Bellevue Asset Management Enlarging footprint into new niche & growth areas Investment professionals & skills Products & solutions asdf asdf Private Equity & Non-healthcare Investment Base Niche Swiss Equity Strategy Alternative Investments 2 investment professionals & analysts • BB Entrepreneur CH
Slide 39: Strengthening distribution & operations
Bellevue Asset Management Strengthening distribution & operations Professionals & skills Achievements & thrusts • Strengthened and enhanced specialized sales & marketing organization to leverage new product offering on existing Sales, marketing & client network product development • Broaden and deve
Slide 40: Contact
Bellevue Group AG Contact Investor Relations Anja Stubenrauch Tel. +41(0)44 267 67 06 Fax +41(0)44 267 67 02 [email protected] Bellevue Group AG Seestrasse 16 CH-8700 Küsnacht Phone +41 (0)44 267 67 77 Fax +41 (0)44 267 67 78 [email protected] www.bellevue.ch 39