EFG International AG · SIX:EFGN
EFG International — FY2005 Earnings Presentation
25 slides from EFG International's earnings presentation, Mar 9, 2006
Slide 1: 2005 Results
2005 Results March 9, 2006 Zurich
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: 2005 Highlights
2005 Highlights 152% increase in Net Profit from CHF 48.0 million to CHF 120.9 million 43% increase in Operating Income from CHF 235.9 million to CHF 338.4 million 68% increase in the number of CROs from 160 to 268 114% increase in Assets under Management from CHF 22.1 billion to CHF 47.3 billion(1)
Slide 5: 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
Slide 6: Comparison 1H 2005 versus 2H 2005
Comparison 1H 2005 versus 2H 2005 1H 2005 2H 2005 ∆% Operating Income CHF 140.6 million CHF 197.8 million 40.7% Profit before Tax CHF 57.0 million CHF 81.1 million 42.3% Net Profit CHF 50.1 million CHF 70.8 million 41.3% Cost-Income Ratio 57.1 % 57.0 % 3
Slide 7: 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
Slide 8: 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
Slide 9: Business Model Centered around CROs
Business Model Centered around CROs Number of Client Relationship Officers (Period-end) 300 268 CAGR 2000-2005: +40% 250 2004-2005: +68% 200 160 150 130 100 90 80 50 50 0 2000 2001 2002 2003 2004 2005 6
Slide 10: 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 53.8 6.5 CHF 47.3(1) 21.9 CHF 22.1 CHF 20.1 3.7(2) CHF 9.1 9.0 8.5 CHF 8.6 21.7 CHF 5.3 1.6 1.7 11.6 13.1 7.0 7.4 5.3 2000 2001 2002 2003 2004 2005 Organic Acquisitions Assets under Administration
Slide 11: 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 11% Loans Funds: 85% 3rd Party Funds 11% Third Party Funds 15% EFG Funds 2% EFG Bank Funds 14% Equities 22.1 11% Structured Notes 20.1 1% 5% 8% 7%
Slide 12: 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
Slide 13: 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
Slide 14: Financials Overview
Financials Overview Rudy van den Steen, CFO
Slide 15: Revenues Track Record
Revenues Track Record Swiss GAAP Historic Revenues 2000-2004 (CHF mn) IFRS Revenues 2004-2005 (CHF mn) 400 400 +43% 338.4 350 350 CAGR: +42% 300 300 243.0 235.9 250 250 200 200 150 150 100 100 60.0 50 50 0 0 2000 2004 2004 2005 Swiss GAAP IFRS 2000 2004 2004 2005 Total Revenues (% Average AUM) 1.22%
Slide 16: Net Profit and Cost-Income Ratio
Net Profit and Cost-Income Ratio Swiss GAAP Historic Net Profit 2000-2004 (CHF mn) IFRS Net Profit 2004-2005 (CHF mn) 140 140 (3) 120.9 120 79% 120 +152% 73% CIR(1) 100 100 68% CIR(1) 80 80 57% (3) 60 CAGR: +65% 60 48.0 43.0 (4) 40 40 83.7 (4) 20 20 43.5 6.0 0 0 2000 2004 2004 2005 Swiss GAAP IFRS K
Slide 17: Revenues: Strong Momentum
Revenues: Strong Momentum IFRS (In CHF million, YE December 31) 2004 2005 %∆ Net interest income 45.0 90.9 102% Net banking fee and commission income 141.1 209.0 48% Net trading income 44.3 38.4 (13%) Other income 5.4 0.1 (98%) Operating income 235.9 338.4 43% Net Interest Margin (% Average IEA(1) )
Slide 18: Continued Optimisation of Cost-Income Ratio
Continued Optimisation of Cost–Income Ratio IFRS % of Operating Income (In CHF million, YE December 31) 2004 2005 %∆ 2004 2005 Personnel expenses (128.8) (138.6) 8% 55% 41% Other operating expenses excluding D&A (44.0) (54.2) 23% 18% 16% Operating expenses before depreciation and amortisation (172.8
Slide 19: Resulting Net Profit
Resulting Net Profit IFRS (In CHF million, YE December 31) 2004 2005 %∆ Profit before tax 57.8 138.1 139% Income tax expense (9.8) (17.2) Net profit for the period 48.0 120.9 152% Estimated preference dividend on EFG Fiduciary (4.5) (37.2) Certificates(1) Net profit attributable to ordinary sharehol
Slide 20: Profitability Indicators
Profitability Indicators Strengthening of key ratios ¨ Profitability indicators expected to continue to improve thanks to operating leverage Swiss GAAP IFRS 2000 2004 2004 2005 Profitability and Efficiency Ratios (1) Net Interest Margin (% Average IEA ) 1.23% 1.33% 1.21% 1.24% Commission Income (% T
Slide 21: Slide 21
Slide 22: Appendix
Appendix EFG @ International
Slide 23: Definition: Time-weighted average AUM
Definition: Time-weighted average AUM The consolidated 2005 financial results of EFG International reflect the full-year operations of EFG International and its subsidiaries except for the six acquisitions made in 2005. The financial results of Dresdner Lateinamerika Financial Advisors LLC are refle
Slide 24: Consolidated Income Statement (unaudited)
Consolidated Income Statement (unaudited) IFRS (In CHF '000 YE December 31) 2004 2005 %∆ Interest and discount income 83'263 184'416 121% Interest expense (38'310) (93'496) 144% Net interest income 44'953 90'920 102% Banking fee and commission income 173'857 236'541 36% Banking fee and commission ex
Slide 25: Consolidated Balance Sheet (unaudited)
Consolidated Balance Sheet (unaudited) IFRS (In CHF '000 YE December 31) 2004 2005 %∆ ASSETS Cash and balances with central banks 8'999 42'888 377% Treasury bills and other eligible bills 252'954 488'970 93% Due from other banks 1'772'224 3'744'459 111% Trading securities 15'181 7'836 -48% Derivativ