Julius Baer Gruppe AG · SIX:BAER
Julius Baer Gruppe — Julius Baer Holding — UBS Alpine Summit 2000, Gstaad
18 slides from Julius Baer Gruppe's conference presentation, Jan 22, 2000
Slide 1: A private bank in the third millennium
A private bank in the third millennium Presentation by Rudolf E. Baer Chief Executive Officer Julius Baer Holding Ltd. 22 January 2000
Slide 2: History
History l Julius Baer & Co. incorporated in 1975 l Going public in 1980 l No business monoculture l Business of the 80s: Private banking, trading, commercial lending l Business of the 90s: Asset Management (private banking, institutional asset management, mutual funds), brokerage, trading, no more c
Slide 3: Business Lines
Business Lines Chairman Thomas Baer CEO Rudolf E. Baer Private Inst. Mutual Trading Resources Banking Asset Funds Brokerage Mgmt Walter Raymond Leo Peter Knaben- Baer Schrutt Spinnler hans Paul Erni
Slide 4: Assets under management: CAGR 15% (10 years)
Assets under management: CAGR 15% (10 years) CHF bn 120 107 Expected long-term 100 94 growth rate: ~15% p.a. 81 80 64 60 49 45 46 40 30 33 27 26 20 0 89 90 91 92 93 94 95 96 97 98 6.99 Global custody of CHF 26.6 bn (6.99) not included
Slide 5: Analysis of client portfolios (70% private clients)
Analysis of client portfolios (70% private clients) Gross fee margins* Asset mix 60 51 52 50 47 44 42 42 40 96 50 26 15 9 30 97 46 31 12 11 20 43 35 12 10 98 10 6.99 43 36 11 10 0 94 95 96 97 98 6.99 0% 50% 100% Bonds Equities * Management fees in % of average assets Money market under management Th
Slide 6: Service and relationship: the key drivers
Service and relationship: the key drivers Principal reasons to select your bank now and in 5 years time: Rank now Rank Rank in 5 years Pers. relationship 1 Service quality Image 2 Pers. relationship Service quality 3 Investm. performance Recommendation Recommendation from client 4 from client Recomm
Slide 7: Private Banking
Private Banking l Need for personal consulting and human contact will continue l Clients need a counterpart with a broad horizon l Structure of portfolio in accordance with established risk profile and objective of the client (not just selling products) l Tremendous potential on the European contine
Slide 8: Performance in institutional asset management
Performance in institutional asset management Julius Baer Asset Mgmt, Zurich Julius Baer Investment Mgmt, LDN (CHF, in % p.a.) 1999 95-99 (USD, in % p.a.) 1999 95-99 Global equities European equities Performance 63.0 27.4 Performance 25.1 26.2 Benchmark 45.6 24.7 Benchmark 15.9 22.1 European equitie
Slide 9: Core services from a client point of view
Core services from a client point of view Portfolio Management Investment Advice Private clients Inst. clients Private clients Inst. clients Discretionary Discretionary Advisory Institutional mandates mandates mandates Brokerage
Slide 10: European brokerage: creating value
European brokerage: creating value No risk capital required Strong research focus l No proprietary trading l Independent research of l No market making highest quality l No underwriting l Country research l No corporate finance / l Pan-European sector capital markets activities* research (matrix) *E
Slide 11: Continuous strong growth in mutual funds
Continuous strong growth in mutual funds CHF bn 20 18.5 18 Partner business JB clients CAGR 89-98: 16 28% 14.7 14 Long-term: 12 20%+ 10.5 10 8 6.9 5.4 6 4.8 5.0 4 3.1 1.6 2.0 2 1.4 0 89 90 91 92 93 94 95 96 97 98 6.99
Slide 12: Best performing Luxembourg Funds
Best performing Luxembourg Funds Base Performance 1999 currency (in base currency) Special Europe Stock Fund EUR +175.3% Special German Stock Fund EUR +103.8% Japan Stock Fund JPY +76.1% Pacific Stock Fund USD +66.5% Special Swiss Stock Fund CHF +65.8% Global Megatrend Stock Fund * EUR +53.0% Centra
Slide 13: Julius Baer Group internet strategy
Julius Baer Group internet strategy “B2C“ “Group Projects Internet Presence“ e.g. private clients “B2B“ solutions for distribution partners e.g. JBfundnet { e.g. mutual funds
Slide 14: Assets under management: CAGR 15% (10 years)
Assets under management: CAGR 15% (10 years) CHF bn 120 107 Expected long-term 100 94 growth rate: ~15% p.a. 81 80 64 60 49 45 46 40 30 33 27 26 20 0 89 90 91 92 93 94 95 96 97 98 6.99 Global custody of CHF 26.6 bn (6.99) not included
Slide 15: Revenues from an economic point of view
Revenues from an economic point of view 99H1 Other income 1 (2)% Interest Prop. income trading 12 (11)% 8 (11)% Asset management fees and Inst. Brokerage commissions 20 (18)% 48 (46)% Client-related trading 11 (12)% in () 98H1 "Commissions": 79 (76)%
Slide 16: Revenues doubled since 1995 (99H1: + 4%)
Revenues doubled since 1995 (99H1: + 4%) CHF mn 1200 1040 1000 846 800 598 577 600 524 557 506 400 200 0 94 95 96 97 98 98H1 99H1
Slide 17: Operating expenses
Operating expenses (Staff growth 12 months: +8%) Personnel expenses General expenses (99H1: +18%) (99H1: +10%) CHF mn 401 CHF mn 400 250 230 327 194 300 200 251 219 232 150 198 150 130 120 200 109 100 100 50 Bonus 30% 0 0 95 96 97 98 1 1 1 1 95 96 97 98 H H H H 98 99 98 99
Slide 18: Profit before and after taxes (one-off tax effect)
Profit before and after taxes (one-off tax effect) CHF mn 400 370 +28% Tax rate 1997 : 29% 1998 : 16% 290 302 +49% 300 1999+ : 28-30% 257 +27% 202 without 200 168 one-off 145 131 tax effect 128 101 113 of CHF 100 45 mn 0 94 95 96 97 98 Pre-tax profit Net profit ROE 22.1%