Julius Baer Gruppe AG · SIX:BAER
Julius Baer Gruppe — Julius Baer Group — Goldman Sachs Conference 2008
20 slides from Julius Baer Gruppe's conference presentation, Jun 12, 2008
Slide 1: The leading dedicated wealth manager in Switzerland
The leading dedicated wealth manager in Switzerland Dieter Enkelmann Group Chief Financial Officer Goldman Sachs Conference Berlin, 12 June 2008 1 Cautionary statement on forward-looking information This presentation may contain projections or other forward-looking statements regarding future financ
Slide 2: Creating value through focused business model and capital discipline
Creating value through focused business model and capital discipline Focused business model Capital discipline Pure play wealth manager Conservative management of the risk profile of the Group Active capital management Financial performance 3 Creating value through focused business model Pur
Slide 3: Structure of the Julius Baer Group
Structure of the Julius Baer Group Client segments Julius Baer Group 405bn 73bn 18% Bank Julius Baer Asset Management 234bn 171bn 202bn 130bn 50% Private Investment GAM US Asset Banking Products Management 32% 156bn 78bn 86bn 85bn Private clients Private clients via third-party distributors Institut
Slide 4: GAM and US Asset Management
GAM: with established brand, strengthening distribution GAM Offices: London Dublin Zurich Further strengthening of third-party Dubai distribution Hong Kong Continued cross-selling to Julius Tokyo Bermuda Baer Private Banking New York 9% of GAM AuM per end 2007 (up from 7% in 2006) AuM by produ
Slide 5: Asset Management: 2010 targets
Asset Management: 2010 targets Gross margin (bps) Cost/income ratio (incl. performance fees) 50-55% 90 55% 85.7 53.0% 84.9 85.0 52.0% 85 80 50% 75 70 45% 65 60 40% 2006 2007 2010 2006 2007 2010 9 Growing the franchise of Bank Julius Baer 10 5
Slide 6: Bank Julius Baer = Private Banking + Investment Products
Bank Julius Baer = Private Banking + Investment Products Segment Bank Julius Baer Private Banking Investment Products Divisions the private banking the private banking client division product division 156bn 78bn Assets under Management in CHF as of 31 December 2007 11 Growing footprint of Bank Juliu
Slide 7: Private Banking: attracting senior relationship managers
Private Banking: attracting senior relationship managers Number of Relationship Managers (RMs) Added net 94 RMs in 2007, +94 vs 86 in 2006 600 550 Hired RMs across all key +86 513 market regions to 500 - support our geographic 456 407 footprint expansion 400 370 - strengthen position in core mar
Slide 8: Private Banking: net new money
Private Banking: net new money Net New Money (CHFbn) CHF 12bn or 9% of NNM added CHFbn 12bn in 2007 7 Bulk of NNM coming from growth 6 6bn markets, particularly Asia … 5 … but all other core market 4 6.7 regions added positively as well 3 5.4 4.6 2 1 1.3 ¾ Meaningful NNM expected in 0 0 2008 b
Slide 9: Absolute Return Bond Fund; Bank Julius Baer: 2010 targets
Absolute Return Bond Fund Flavour of the time with solid performance April 2008 1 Year 3 Years % Net Total Return % Net Total Return % Net Total Return 0.8 6.4 14.4 Absolute: +0.58% Absolute: +5.46% Absolute: +13.27% vs 3m Euribor: +0.19% vs 3m Euribor: +0.91% vs 3m Euribor: +2.53% 0.7 5.6 12.6 0.6
Slide 10: Appendix
Appendix 19 Creating value through capital discipline 20 10
Slide 11: Balance sheet structure reflects business focus
Balance sheet structure reflects business focus Business model focused on wealth management onlys Baer Group is the leading dedicated wealth manager Lending only to private clients No investment banking activities (except structured products) No commercial lending No retail banking ¾ Effec
Slide 12: New share buy-back launched
New share buy-back launched 2008-10: buying back up to CHF 2 billion ~11% of outstanding shares (based on share price at 7 May 2008) started 21 April 2008, via second trading line (SWX; symbol: BAERE) runs through end of 2010 annual cancellation of bought back shares (subject to AGM approval
Slide 13: 2008 YTD: impact from market performance and currencies
Given 2008 YTD: impact from market performance and from currencies Impact from market performance on key asset classes Impact from strong CHF against key currencies % change of value of indices, since 31-Dec-07 % change of value of CHF, since 31-Dec-07 2% 16% 0% 14% -2% -4% 12% -6% 10% -8% -10% 8% -
Slide 14: Consolidated 2007 Adjusted Results
Consolidated 2007 Adjusted Results (CHFm) 2006 2007 Change 06/07 Net interest income 258 323 25% Results from comm. and service fees 2,349 2,755 17% Results from trading operations 191 298 56% Other ordinary results 25 73 197% Operating income 2,823 3,449 22% Personnel expenses 1,187 1,409 19% 1 Gen
Slide 15: Asset Management 2007 Results
Asset Management 2007 Results (CHF m) 2006 2007 Change 06/07 Operating income 1,139 1,430 26% Personnel expenses 455 587 29% 1 General expenses 131 162 24% Depreciation and amortisation 11 12 15% Operating expenses 596 762 28% Profit before taxes of segment 542 668 23% Gross margin (bp) 85.7 84.9 -1
Slide 16: Breakdown of Group assets under management
Breakdown of Group assets under management Asset mix 31.12.06 31.12.07 Equities 40% 41% Bonds 19% 18% Market performance Money Market 7% 7% added CHF 18bn Third-Party Funds 19% 19% in full year 2007 (but Client Deposits 4% 6% down CHF 6bn in H2) 1 Other 11% 9% Total 100% 100% Currency mix 31.12.06 3
Slide 17: Division Investment Products 2007 Results
Division “Investment Products” 2007 Results 2006 pro forma excludes divestment of JBIL business (CHFm) 2006 2006 2007 Change Pro forma 06 pro excl. JBIL forma/07 Operating income 354 303 398 31% Operating expenses 197 155 163 5% Profit before taxes of division 157 148 236 59% Gross margin (bp) 50.2
Slide 18: New Segment Bank Julius Baer
New Segment “Bank Julius Baer” Profit & Loss account (CHFm) H1 2006 H1 2006 H2 2006 H2 2006 2006 2006 H1 2007 H1 2007 restated restated restated restated Operating income 843.2 776.7 1,619.9 946.1 not meaningful not meaningful not meaningful not meaningful Personnel expenses 347.4 326.6 674.0 371.4
Slide 19: New Division Investment Products of Bank Julius Baer
New Division “Investment Products” of Bank Julius Baer Profit & Loss account (CHFm) H1 2006 H1 2006 H2 2006 H2 2006 2006 2006 H1 2007 H1 2007 restated restated restated restated Operating income 194.9 158.6 353.5 214.1 Operating expenses 96.1 100.5 196.6 74.4 Profit before taxes of division 98.8 58.
Slide 20: Former Segment Corporate Centre, New Segment Group Functions
Former Segment Corporate Centre, New Segment “Group Functions” Profit & Loss account (CHFm) H1 2006 H1 2006 H2 2006 H2 2006 2006 2006 H1 2007 H1 2007 restated restated restated restated Operating income 49.2 40.1 31.3 24.2 80.5 64.3 51.9 39.9 Personnel expenses 59.0 40.1 36.6 18.0 95.6 58.1 54.8 33.