VZ Holding AG · SIX:VZN
VZ — FY2007 Earnings Presentation
22 slides from VZ's earnings presentation, Mar 11, 2008
Slide 1: Results and Outlook 2007
VZ Group VZ Holding Ltd Beethovenstrasse 24 CH-8002 Zurich Telephone: +41 44 207 27 27 Fax: +41 44 207 27 28 2007 vermoegenszentrum.ch vzonline.ch Results and Outlook Aarau Basle Berne Frankfurt Geneva Matthias Reinhart, Chairman & CEO Lausanne Lucerne Philipp Marti, CFO Munich St. Gallen Thun Winte
Slide 2: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 1
Slide 3: Highlights 2007
Highlights 2007 Milestones Financials • IPO: strong market response • Increased growth momentum in 2H07 based on new revenue stream of banking operation • VZ Depository Bank: successful launch in Q2 well accepted within existing client base • One-time costs in 1H07 of CHF 2,9 million related to IPO
Slide 4: Revenues: continued growth
Revenues: continued growth Full years in CHF million 94.4 13.7 74.7 11.7 5.7 • + 26% 2007 vs. + 24% 2006 60.0 47.0 12.1 • Banking operation contributed 6% to 9.8 63.0 75.0 total revenues 2007 37.2 47.9 • Management fees +19% yoy 2007 2004 2005 2006 2007 Half years in CHF million 49.8 44.7 36.3 38.4
Slide 5: Revenues: stable segment distribution
Revenues: stable segment distribution in CHF million 100% = 47.0 60.0 74.7 94.4 13% 11% 11% 10% • Slight increase of portion of private client segment due to new revenue streams of banking operation 87% 89% 89% 90% • Stable growth in both segments 2004 2005 2006 2007 Corporate client segment Private
Slide 6: Net profit: slight margin improvement
Net profit: slight margin improvement Full years • + 19% yoy 2007 (+ 29% adjusted) in CHF million • One-time costs (pre tax) of CHF 2.9 million for 33.2* bank start-up and IPO 25.7 30.6 • IPO costs of CHF 2.3 million (pre tax) 18.0 – CHF 1.8 million equity-settled personnel 10.8 costs according to I
Slide 7: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 6
Slide 8: Private client segment: 90% of total revenues
Private client segment: 90% of total revenues Financial consulting Wealth management # of consulting projects Assets under management in CHF million Portfolio management mandates Other assets: – Mortgages under management 2‘512 2’546 – Portfolios under client management 2‘096 5’760 2‘037 5‘467 4‘836
Slide 9: Private client segment: capacity growth on track
Private client segment: capacity growth on track Capacity growth Geographic expansion Frankfurt Full-time equivalents (FTE) with client and budget Munich responsibility Basle Aarau Winterthur Zurich St. Gallen 2005 2006 2007 Rapperswil Zug Lucerne Financial 25.3 30.7 37.4 Neuchâtel Berne consulting
Slide 10: VZ Depository Bank: successful launch in Q2
VZ Depository Bank: successful launch in Q2 Why launch our own depository bank? Status as at 31.12.2007 • Benefits for clients • Operational since April 2007 – lower transaction fees – lower custody fees • >3‘200 existing and >700 new portfolio management clients opened an account and – higher inter
Slide 11: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 10
Slide 12: Corporate client segment: important synergies
Corporate client segment: important synergies Premium volume under management in CHF million p.a. 203 188 • Insurance portfolios under management generate 172 – 9% of total revenues (private and corporate clients) 165 – 88% of corporate client segment revenue • Synergies to private client segment –
Slide 13: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 12
Slide 14: Financials: income statements (1)
Financials: income statements (1) in CHF million Adjusted results* 2005 2006 2007 2007 yoy Consulting fees 11.6 11.0 13.0 13.0 18.3% Banking revenues n/a n/a 5.7 5.7 n/a Management fees 47.8 63.0 75.0 75.0 19.0% Other operating revenues 0.6 0.7 0.7 0.7 5.5% Total operating revenues 60.0 74.7 94.4 94
Slide 15: Financials: income statements (2)
Financials: income statements (2) in CHF million Adjusted results* 2005 2006 2007 2007 yoy EBITDA 22.9 32.6 40.1 43.0 +31.9% Depreciation and amortisation (1.0) (1.3) (1.9) (1.9) +47.7% EBIT 21.9 31.3 38.2 41.1 +31.3% Net finance income 0.3 0.4 0.3 0.3 -28.8% Profit before income tax 22.2 31.7 38.5
Slide 16: Financials: operating expenses (1)
Financials: operating expenses (1) Personnel expenses in CHF million 50% • Underproportional growth compared to 46.5% 46.5%* 35 operating revenues when adjusted for one- 45% 41.0% 41.2% time costs 30 44.5% 38.6% 40% 25 41.2% • Despite of investment in additional personnel 20.8* 20 18.4 19.2 35% capa
Slide 17: Financials: operating expenses (2)
Financials: operating expenses (2) Other operating expenses in CHF million 18% • Costs under control, no negative impact of 15.1% 16.0% - four additional branches in 2007 16 17.0% 16% - higher cost base since Q2 07 due to launch 14 15.8% 15.4% 14% of VZ Depository Bank 14.7% 14.4% 12 12% 10% • Ratio
Slide 18: Financials: EBITDA and margin
Financials: EBITDA and margin EBITDA in CHF million 50% 46.9% 35 43.8% 44.1% 45% 30 • Margin on a high and sustainable level 43.4% 37.5% 40% 25 36.5% 23.4 – 2007: 45.5% (full year/adjusted) 39.7% – 2006: 43.6% (full year) 19.7 35% 20 15.9 16.7 15 12.6 30% 10.3 10 16.7* 25% 5 0 20% 1H05 2H05 1H06 2H0
Slide 19: Financials: EBIT and margin
Financials: EBIT and margin EBIT in CHF million 50% • Growth in depreciation and amortisation of 44.9% CHF 0.6 million in 2007 (+ 47.7%) 35 42.2% 41.6% 42.1% 45% – primarily due to bank start-up and 30 40% – secondarily due to expansion of branch 34.6% 35.6% 25 38.1% 35% network 22.3 20 18.8 30% • O
Slide 20: Balance sheets
Balance sheets in CHF million 2006 2007 Net cash position* 39.1 80.8 MM investments client money 3.0 433.6 Other current assets 23.9 25.1 Total current assets 66.0 539.5 • Strong growth of balance sheet Financial assets 6.9 0.2 in 2007 due to VZ Depository Bank Property, equipment, intangibles 5.5 8
Slide 21: Agenda
Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 20
Slide 22: Outlook 2008
Outlook 2008 Business development Impact of financial turbulances • Focus on strenghtening the banking operation • Consulting fees: low – 90% of new portfolio management clients opt • Banking revenues: low for VZ Depository Bank (experience 2007) – By end of 2008: 70-75% of total portfolio • Assets