EFG International AG · SIX:EFGN

EFG International — Deutsche Bank Swiss Equities Conference 2006

25 slides from EFG International's conference presentation, May 2006

  1. Slide 1: Deutsche Bank Swiss Equities Conference

    Deutsche Bank Swiss Equities Conference Rudy van den Steen, CFO Lake Lucerne, May 2006

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents I. Industry Overview 1 II. Overview EFG International 2 III. Financials 9 IV. Medium-Term Targets 15 V. Appendix 17

  4. Slide 4: I. Industry Overview

    I. Industry Overview EFG @ International

  5. Slide 5: The "Pure" Private Banking Industry

    The “Pure” Private Banking Industry Attractive industry offering large volumes, predictable revenues and low risk Large Volumes of AUM (In US$ billion) 2,000 Combined Net Worth of World’s Billionaires ƒ Net worth of world’s billionaires valued at 1,800 approximately $1.9 trillion 1,600 1,400 ƒ Stron

  6. Slide 6: II. Overview EFG International

    II. Overview EFG International

  7. Slide 7: EFG International: Overview

    EFG International: Overview ƒ A global private banking organisation – 13 booking centres – 36 offices • One of Switzerland’s best capitalised banking organisations – Total Shareholders’ Equity of EFG International: > CHF 2 billion • Part of EFG Group, Switzerland’s 3rd largest banking group – Total

  8. Slide 8: Key Performance Indicators

    Key Performance Indicators Historic Performance (CAGR) Year-on-Year Performance 2000 – 2004 CAGR 2004 – 2005 (Swiss GAAP) (IFRS) 152% 131% 114% (1) 97% (2) 68% 65% 57% 43% 42% 43% 34% CROs AUM Total Gross Net Profit CROs AUM Total Gross Net Profit (3) (3) Revenues Profit Revenues Profit 1. Including

  9. Slide 9: The CRO Model: The Key Growth Driver

    The CRO Model: The Key Growth Driver Tested CRO Model Compensation Model ƒ Average yearly production of AUM per annum: Fixed salary at market rates ƒ CHF30 million per CRO plus ƒ Average annual gross return on AUM: Bonus of 15% to 20% of ƒ 1.10% per annum net contribution EFG historic experience: Av

  10. Slide 10: A Global Approach

    A Global Approach For CROs For EFG International ƒ Each CRO has a global client mandate ƒ Positioned as a global private bank not a Swiss – Starts with own client and prospect list private bank – No client segmentation criteria ƒ Free from restrictions of traditional approaches, i.e. – Can book at a

  11. Slide 11: Significant Growth Supported by IT and Product Expertise

    Significant Growth Supported by IT and Product Expertise IT Expertise Product Expertise ƒ Globally unified and integrated/centralised IT ƒ Cutting-edge product expertise – open architecture platform prevails ƒ Cost-effective IT ƒ High quality in-house structured note / derivatives capabilities ƒ Fir

  12. Slide 12: 10 Years of Growth

    10 Years of Growth Bahamas Organic Growth Hong Kong New York Dubai Banking License Dubai Singapore Luxembourg Banking License EFG Luxembourg Founding of Miami Guernsey Buenos Aires Taipei Investment Banking EFG Bank Broker-Dealer Bank, Sweden License 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

  13. Slide 13: Today's Global Presence

    Today’s Global Presence Luleå Göteborg Malmö Helsinki Stockholm Birmingham Kristianstad London Guernsey Jersey Switzerland: Zurich, Geneva, Sion, Martigny, Crans-Montana, Verbier Luxembourg Liechtenstein New York Monaco Gibraltar Bermuda Miami Mexico City Bahamas Dubai Hong Kong Taipei British Virgi

  14. Slide 14: III. Financials

    III. Financials EFG @ International

  15. Slide 15: Business Model Centered around CROs

    Business Model Centered around CROs Number of Client Relationship Officers (Period-end) 297 300 268 250 200 160 150 130 100 90 80 50 50 0 2000 2001 2002 2003 2004 2005 1Q 2006 9

  16. Slide 16: Organic and External Growth of Client's AUM

    Organic and External Growth of Client’s AUM Clients’ Assets under Management Numbers in CHF billion CHF 59.4 CHF 53.8 6.5 6.5 CHF 52.9(1) CHF 47.3(1) 24.0 21.9 CHF 22.1 (2) 3.8 CHF 20.1 (2) 3.7 CHF 9.1 9.0 8.5 CHF 8.6 25.1 CHF 5.3 21.7 1.7 1.7 11.6 13.1 5.3 7.0 7.4 2000 2001 2002 2003 2004 2005 1Q 2

  17. Slide 17: Consolidated Income Statement

    Consolidated Income Statement 2004 2005 Average AUM (CHF, million) 21'100 27'000 IFRS (In CHF, million YE December 31) 2004 2005 %Δ Net interest income 44.9 90.9 102% Net banking fee and commission income 141.1 209.0 48% Net other income (mainly trading) 49.8 38.5 -23% Operating income 235.8 338.4 4

  18. Slide 18: Income, Expenses and Net Profit

    Income, Expenses and Net Profit IFRS Income & Expenses 2004-2005 (CHF mn) IFRS Net Profit 2004-2005 (CHF mn) 400 +43% 140 338.4 350 120.9 120 +152% 300 100 Net Profit 235.9 Revenues 250 80 200 57% 73% 60 150 48.0 Net Profit to 100 Expenses 40 83.7 Ordinary 172.8 +12% 192.8 Shareholders +93% 50 20 43

  19. Slide 19: Profitability Indicators

    Profitability Indicators Strengthening of key ratios ¨ Profitability indicators expected to continue to improve thanks to operating leverage IFRS 2004 2005 Profitability and Efficiency Ratios Personnel Expenses (% Operating Income) 59% 41% Other Operating Expenses (% Operating Income) 18% 16% Cost-I

  20. Slide 20: Consolidated Balance Sheet

    Consolidated Balance Sheet IFRS (In CHF '000 YE December 31) 2004 2005 %Δ ASSETS Treasury bills and other eligible bills 253 489 93% Due from other banks 1'772 3744 111% Loans and advances to customers 1'776 4544 156% Investments securities 391 1434 267% Intangible assets 170 351 106% Other 208 257

  21. Slide 21: IV. Medium-Term Targets

    IV. Medium-Term Targets EFG @ International

  22. Slide 22: Announced Medium-Term Targets versus 2005 Status

    Announced Medium-Term Targets versus 2005 Status Previously Announced 2004 Status 2005 Status Medium-Term Targets CROs ~ 500 160 268 AUM Growth Assumed CHF30 On track On track per CRO million per year Assets under Management CHF60-65 billion CHF22.1 billion CHF43.7 billion(1) ~ 1.10% of 1.12% of 1.2

  23. Slide 23: The EFG International Business Model

    The EFG International Business Model The Business Model Continuing to Deliver Performance CRO-Centred Model ; 2004 - 2005 (IFRS) 152% A Strategy Focused Exclusively on Providing Private Banking and Asset Management Services through an ; 131% Open Architecture Approach 114% (1) A Strong Management wi

  24. Slide 24: V. Appendix

    V. Appendix EFG @ International

  25. Slide 25: AUM Breakdown

    AUM Breakdown AUM: strong diversification and truly open architecture Numbers in CHF billion 47.3 EFG International 43.7 (100%) Locked-up Shares 3% Other 10% Loans Funds: 86% 3rd Party Funds 12% Third Party Funds 14% EFG Funds 2% EFG Bank Funds 15% Equities 22.1 20.1 12% Structured Notes 1% 5% 8% 7%

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