Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — Non-Deal Roadshow (August 2006)
30 slides from Banque Cantonale Vaudoise's roadshow presentation, Aug 31, 2006
Slide 1: BCV Group - Background and strategy
BCV Group - Background and strategy Zurich, August 31st 2006 1
Slide 2: Agenda
1. Introduction to BCV 2. BCV history and strategic repositioning 3. Strategy going forward 2
Slide 3: Legal structure and capital
Legal structure and capital (as of 30.08.2006) n By-laws • Public limited company without state guarantee • Main shareholder: Canton of Vaud with 67.3% of the group’s registered share capital and 100% share of the participation certificates • The cantonal bank status requires a minimal 33% sharehold
Slide 4: BCV has four main business areas
BCV has four main business areas BCV GROUP Retail banking Wealth management Corporate banking Trading • Retail clients • Private banking • SMEs • Own trading (on/offshore) • Corporates • Customer • Institutional AM • Micro companies* transactions • Fund management (1-5 employees) • All trading produ
Slide 5: Main affiliates within the BCV Group
Main affiliates within the BCV Group Banque Piguet & Cie SA Private Banking A&G SA (Madrid) Private Banking Unicible IT Services PARENT COMPANY Sogirom Real estate company (to be divested) Gérifonds SA GEP SA Fund management Real estate funds
Slide 6: Key data (as of 31.12.2005)
Key data (as of 31.12.2005) (in CHF rounded) 31.12.2005 31.12.2004 Var % n Total assets 34.9 bn 32.3 bn + 8.0% n Equity 3.2 2.9 bn +10.6% n AUM 71.7 bn 64.1 bn +12.0% n Full time 2349 2423 - 3.1% equivalents n Revenue 1037.7 mn 944.1 mn +9.9% n Net profit* 454.2 mn 334.9 mn +35.6% Source: BCV annual
Slide 7: BCV, the fourth largest universal Swiss bank
BCV, the fourth largest universal Swiss bank As of 31.12.2005 Total assets (CHF bn) Type Crédit Suisse 227 • Universal UBS 204 • Universal Group of Raiffeisen banks 108 • Regional Cantonal Bank of Zurich 86 • Universal BCV 35 • Universal Migros Bank 28 • Cooperative Cantonal Bank of Bern 21 • Region
Slide 8: BCV: 6th largest capitalisation (free float) among Swiss banks
BCV: 6th largest capitalisation (free float) among Swiss banks Ranking in The first 10 banks in CHF bn % of free the SPI float 4 UBS 131,1 90% 5 CS 76,8 90% 12 Julius Bär 10,4 79% 41 Valiant Bank 2,2 100% 53 EFG 1,3 25% 57 BCV 1,2 33% 59 SGKB 1,2 45% 62 Sarasin 1,1 33% 63 LLB 1,1 66% 64 VP Bank 1,1
Slide 9: Organisational chart
Organisational chart Executive board Board of Directors Corporate Intern. Audit Chairman secretary Olivier Steimer CEO Alexandre Zeller Corporate Human secretary resources Finance & Corporate Wealth Retail Trading Business Risks Banking management Banking O. Cavaleri support P. Kiener J.F. Schwarz C
Slide 10: Consolidated balance sheet
Consolidated balance sheet (as of 30.06.2006)* (rounded) – BCV Group CHF 35.5 bn CHF 35.5 bn 5.1% Due to Banks Cash and due to banks 14.4% 24.5% Savings Commercial loans 15.5% 26.2% Other deposits Mortgage loans 45.4% 19.2% Lt. Borrowings Trading portfolio and Provisions and 11.5% 15.1% other liabil
Slide 11: Key figures by business areas
Key figures by business areas (in CHF mn, rounded) – 2005 Group Corporate Retail Wealth Trading Banking Banking management Revenue 226.2 266.1 293.0 58.7 Gross profit 152.7 156.5 175.0 29.6 ROE* 8.6% 13.4% 59.0% 10.6% Cost/ 0.46 0.69 0.59 0.61 Income Source: annual report 2005 *Based on net profit c
Slide 12: Agenda: BCV history and strategic repositioning
1. Introduction to BCV 2. BCV history and strategic repositioning 3. Strategy going forward 12
Slide 13: Several phases in BCV's development
Several phases in BCV’s development 1996-2000 2001/2002 2003-2005 2006 - onwards Integration of regional banks The turnaround The growth phase and expansion The crisis 1993 2001 2003 Takeover of BCV: 1st BCV: A new BVCred by BCV recapitalisation of strategy BCV CHF 600 mn P&L loss CHF 381 2002 1996
Slide 14: BCV from 1996 to 2000: expanding in new business areas
BCV from 1996 to 2000: expanding in new business areas Retail Banking Corporate Private Banking Banking - Trade finance - Acquisitions of Private - Oil/shipping financing Banks in Switzerland - Private Equity - International development (Italy, - German-speaking Trading France, Spain, Asia) Switzerl
Slide 15: BCV between 2001-2002
BCV between 2001- 2002 Diversification inadequate and complex structure Inadequate Difficult financial governance rules situation and sub-optimal 2001 – 2002 organisation Crisis at BCV and structural problems Processes and High level of functions often impaired loans costly and inefficient Reputatio
Slide 16: Situation in 2002: financial data
Situation in 2002: financial data Sizeable and recurring net 2001: CHF -381 mn losses 2002: CHF -1’200 mn Extremely high level of CHF 4.36 bn impaired loans (15% of total loans) Operational inefficiencies Ratio cost/income: 75% Sub-optimal balance sheet Net interest margin : 1.25% structure Tier 1:
Slide 17: Successful first phase
Successful first phase 2003 2004 2005 2006 First phase: • Strategic realignment mission • Financial situation accomplished • Governance/organisation Growth • Capital structure Operational excellence Quality of service and execution Products Gaining trust 17
Slide 18: We kept our word
We kept our word • Financial turnaround skilfully mastered ü • Successful strategic realignment on core businesses ü • Significant reduction of impaired loans ü • Reorganisation of the Bank now completed ü • Greater transparency in the exchange of information with the State of Vaud ü • Simplified ca
Slide 19: Improving gross and net profit
Improving gross and net profit 486 CHF mn Net profit (loss) Gross profit (loss) 457 (rounded) • Underlying business over the last 5 years has been very resilient 474 399 389 • Over the past 3 330 years gross profit is 320 337 constantly improving • Losses in 2001 and 160 157 2002 were not operationa
Slide 20: Sustained improvement of main key ratios
Sustained improvement of main key ratios 2002 2003 2004 2005 30.06.06 Impaired loans / credit exposure 15% 13% 10% 7% 6% Quality and Client deposits / balance 68% 74% 78% 83% 83% Loans to clients sheet structure Net interest 1.25% 1.23% 1.29% 1.40% 1.39% margin … with same level of replacement value
Slide 21: Agenda: Strategy going forward
1. Introduction to BCV 2. BCV history and strategic repositioning 3. Strategy going forward 21
Slide 22: BCV has entered the second phase of its strategy
BCV has entered the second phase of its strategy 2004 2005 2006 2007 2008 First phase Successful turnaround: Strategic realignment ü Financial situation ü Second phase Governance and organisation ü Growth and profitability in core businesses Capital structure ü CroisSens growth project Products Oper
Slide 23: Main strategic objectives
Main strategic objectives • Strengthen business growth and profitability of core businesses • Further reduce the impaired loan portfolio • Pursue the in-depth review and overhaul of management and business processes • Plan additional buybacks of the participation certificates 23
Slide 24: CroisSens program: Five key levers to strengthen BCV's market position
CroisSens program: Five key levers to strengthen BCV’s market position Specific and differentiated • Improve our value proposition for key 1 value propositions for segments, e.g., affluent clients with a better each customer segment adapted offer (proximity, service level, etc.) Increase the commerc
Slide 25: CroisSens program: Network revamp
CroisSens program: Network revamp Organization Split into 9 regions Division Rationale: - Geography Wealth Division Retail Division Corp. Banking management - Wealth distribution - Growth potential - Customer proximity 3 head team by region (9 regions) Regional head Regional head Regional head Priva
Slide 26: Clear focus of divisional entities
Clear focus of divisional entities BCV Affected businesses Transfer of micro-sized companies Wealth Corporate Retail management Banking Division Division Division Transfer of affluent clients Customer Individual with assets Affluent (>CHF 150’000) All SME’s < CHF 150’000 Private Banking Selected lar
Slide 27: The goal and impact of CroisSens
The goal and impact of "CroisSens" Goal Impact Stabilize market position by 2007 Growth Strengthen the strong long term market position BCV growth Increase revenues due to additional volumes (deposits, AuM, mortgages) resulting in a lower C/I in the future Market growth Despite costs associated to C
Slide 28: Other selective sources of growth
Other selective sources of growth Trade finance • Market fundamentals in selected segments (softs and metals) remain positive • Opportunities to increase BCV's risk exposure within the limits of the Group's current risk profile Institutional asset management • Excellent fund results based on consist
Slide 29: BCV's risk/return profile
BCV's risk/return profile Lower volatility in earnings Low sensitivity to interest rate changes Healthy loan portfolio Enhanced risk/return profile and high earnings visibility 29
Slide 30: Optimising BCV's value proposition for shareholders
Optimising BCV’s value proposition for shareholders • Aiming for long term moderate but steady top line growth • Improving recurrent gross profit growth in core businesses • Optimising equity requirements in order to meet ROE targets over the long term • Aiming for continuous dividend increases whil
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