Julius Baer Gruppe AG · SIX:BAER
Julius Baer Gruppe — Julius Baer Holding — Investor Presentation (May 2000)
29 slides from Julius Baer Gruppe's investor presentation, May 2000
Slide 1: Julius Baer Holding IR presentation
Julius Baer Holding IR presentation May 2000 1
Slide 2: Assets under management: CAGR 20% (10 years)
Assets under management: CAGR 20% (10 years) CHF bn 160 147 Expectedlong-term Expected long-term 140 growthrate: growth rate: 128 ~15%p.a. ~15% p.a. 120 95 100 81 80 64 60 49 45 46 40 30 33 26 20 0 90 91 92 93 94 95 96 97 98 99 3/00 Global custody of CHF 30.3 bn (12.99) not included 2
Slide 3: Assets growth analysis 1999
Assets growth analysis 1999 135 CHF bn 130 2.1 128.3 6.0 125 Mutual Other 11.9 Funds 120 115 Priv./ inst. 110 5.6 0.2 Mutual Other 105 7.5 Funds 100 Priv./ 95.0 inst. 95 90 1998 New money: 13.3 bn Market: 20.0 bn 1999 3
Slide 4: Analysis of assets under management (31.12.99)
Analysis of assets under management (31.12.99) PrivateBanking: Private Banking: CHF64.5 CHF 64.5bn bn(+21%) (+21%) incl.mgmt incl. mgmtof ofBaer Baerfunds funds:: CHF CHF 2.0 2.0bn bn CHF66.5 CHF 66.5bn bn(+21%) (+21%) ++ InstitutionalAsset Institutional AssetMgmt.: Mgmt.: CHF CHF29.9 29.9bn bn(+37%
Slide 5: Asset and currency mix of client portfolios
Asset and currency mix of client portfolios Asset Mix Currency Mix 100% 100% 8 9 11 10 9 7 8 6 10 12 10 16 15 12 12 75% 75% 32 30 32 33 27 43 40 50% 55 50 46 50% 29 27 27 24 31 25% 25% 35 41 35 35 33 25 26 31 26 32 0% 0% 95 96 97 98 99 95 96 97 98 99 Third-party products M oney M arket USD CHF Bonds
Slide 6: Business line structure and activities (1)
Business line structure and activities (1) PrivateBanking Private Banking Inst.Asset Inst. AssetMgmt Mgmt MutualFunds Mutual Funds Marketingto Marketing tothird- third- Institutional clients partydistributors party distributors Privateclients clients Institutional clients and Private and Management
Slide 7: Business line structure and activities (2)
Business line structure and activities (2) Trading/Brokerage Trading/Brokerage Resources Resources Corp.Functions Corp. Functions Inst.Brokerage Inst. Brokerage Finance/Controlling Finance/Controlling Information Information Securitiestrading Securities trading technology technology Humanresources H
Slide 8: Private Banking: concentration on Europe
Private Banking: concentration on Europe Largestcenters Largest centers Rep.office Rep. officetype typeunits units Otherunits Other units London Hong Kong Montreal Basle, Berne (spring 2000) Zurich Guernsey Lucerne San Francisco Geneva Vienna New York Los Angeles Lausanne Lugano Palm Beach Monaco 8
Slide 9: Segment reporting Private Banking
Segment reporting Private Banking CHF mn 1998 1999 +/- Net operating income 426 449 5% Operating expenses 273 305 12% Segment result before taxes 153 144 -6% Taxes 13 33 157% Segment result after taxes 140 111 -21% Assets under management (bn) 55 67 21% of which mgmt of Baer funds 2 2 2% Number of s
Slide 10: Institutional asset management: focus on Europe
Institutional asset management: focus on Europe Businessdevelopment Business development Confederationof Confederation of Assetmanagement Asset managementcenters centers assetmanagers asset managers followingdiversified following diversified investmentstyles investment styles London London Frankfurt
Slide 11: Baer Funds
Success through customized client solutions Equities:Global ll Equities: GlobalEuropean, European, 60 Institutional assets Domestic(US, Domestic (US,Japanese, Japanese, + 57% 49.4 German,Swiss) German, Swiss) 50 Bonds:Global, ll Bonds: Global,European, European, EmergingMarket, Emerging Market,Domes
Slide 12: Performance inst. asset mgmt and mutual funds
Performance inst. asset mgmt and mutual funds JuliusBaer Julius BaerAsset AssetMgmt, Mgmt,Zurich Zurich Best performing Stock Funds (CHF,inin% (CHF, %p.a.) p.a.) 1999 95-99 1999 95-99 Base Perf. Globalequities equities Curr. 99 % Global Performance 63.0 27.4 Special* Europe Stock Fd EUR +175.3 Perfo
Slide 13: Segment reporting Inst. Asset Management
Segment reporting Inst. Asset Management CHF mn 1998 1999 +/- Net operating income 103 133 29% Operating expenses 58 69 19% Segment result before taxes 45 64 43% Taxes 8 20 143% Segment result after taxes 37 44 20% Segment result after minorities 32 39 21% Assets under management (bn) 32 49 57% of w
Slide 14: Partner distribution
Continued strong growth in mutual funds CHF bn 40 34.3 JB clients 35 CAGR90-99 CAGR 90-99::40% 40% 30 Long-term ::20%+ 20%+ 28.0 Long-term 25 Partner distribution 20 16.4 15 10.5 10 5.4 6.9 4.8 5.0 5 3.1 1.4 2.0 0 90 91 92 93 94 95 96 97 98 99 3/00 14
Slide 15: Mutual funds business with partners
Mutual funds business with partners Partner business: CHF 19.2 bn CHF bn 10 as of 12.99 8.5 8 5.9 6 5.4 Switzerland 44 (50)% Italy 4 31 (25)% 2.7 1.9 2 0.6 Germany 0 98 99 98 99 98 99 Other 10 (6)% 7 (6)% Switzerl. Italy Germany Austria in ( ) 12.98 8 (13)% 15
Slide 16: Swiss mutual funds market
Swiss mutual funds market Market Share Change Provider 1998 1999 98/99 1. UBS 54.1% 47.2% -12.8% 2. Credit Suisse 22.2% 22.8% 2.7% 3. Swissca (Cantonal Banks) 7.4% 8.2% 10.8% 4. Julius Baer Group 4.1% 5.6% 36.6% 5. Lombard Odier 1.9% 2.7% 42.1% 6. Vontobel 2.3% 2.4% 4.3% 7. BSI 1.0% 1.4% 40.0% 8. Sa
Slide 17: Segment reporting Mutual Funds
Segment reporting Mutual Funds* CHF mn 1998 1999 +/- Net operating income 62 97 55% Operating expenses 30 39 30% Segment result before taxes 32 58 78% Taxes 1 15 - Segment result after taxes 31 43 37% Segment result after minorities 27 37 37% Assets under management (bn) 16 28 71% Number of staff 71
Slide 18: Inst. brokerage: focus on continental Europe
Inst. brokerage: focus on continental Europe ••Country Country++pan-European pan-Europeansectorsectorresearch research ••No Nocorporate corporatefinance/M&A finance/M&Aabroad abroad ••Critical Criticalmass massreached reached(100(100sales salespeople people 60analysts, 60 analysts,800 800institution
Slide 19: Commissions from institutional brokerage
Commissions from institutional brokerage CHF mn 30 Average Average Average Average 1998 1998 1999 1999 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 19
Slide 20: Operating income Trading / Brokerage
Operating income Trading / Brokerage CHF mn 1998 1999 99/98 Institutional brokerage 219 244 53% 11% Securities trading 43 94 20% 119% Foreign exchange trading 62 64 14% 3% Asset & liability management 45 33 7% -27% Capital markets 12 23 5% 92% Sundry 8 6 1% -25% Operating income 389 464 100% 19% 20
Slide 21: Segment reporting Trading / Brokerage
Segment reporting Trading / Brokerage CHF mn 1998 1999 +/- Net operating income 389 464 19% Operating expenses 202 270 33% Segment result before taxes 187 194 4% Taxes 37 59 60% Segment result after taxes 150 135 -10% Minority interest 0 2 - Segment result after minorities 150 133 -11% Number of sta
Slide 22: Group P&L: Revenues commission driven
Group P&L: Revenues commission driven Net operating income Breakdown 1400 + 17% 1212 net operating income 1200 1040 1000 CHF mn 846 Commissions 800 70 (67)% 598 600 524 400 200 Net interest Trading 12 (13)% Other 16 (17)% 0 2 (3)% 95 96 97 98 99 Proprietary trading 6% of revenues 22
Slide 23: Group P&L: Solid fee margin
Group P&L: Solid fee margin Asset management fees Gross fee margin* 700 60 + 29% 52 576 bps 51 600 50 47 42 42 500 CHF mn 446 40 400 347 30 300 238 199 20 200 100 10 0 0 95 96 97 98 99 95 96 97 98 99 * Asset management fees in % of avg. AuM 23
Slide 24: Group P&L: Staff expenses reflect good results
Group P&L: Staff expenses reflect good results Staff expenses Number of staff 2008 600 2100 + 24% + 11% 1816 497 1800 1661 500 CHF mn 1470 1520 401 1500 400 327 1200 300 251 900 219 200 Bonus 600 100 300 0 0 95 96 97 98 99 95 96 97 98 99 24
Slide 25: Group P&L: Gen. expenses growth to slow down
Group P&L: Gen. expenses growth to slow down Growthrate Growth rate1995-99 1995-99 300 General expenses 284 22%(CAGR) ll 22% (CAGR) + 24% 250 CHF mn 230 Year 2000target Year2000 target 194 200 Limitthe ll Limit thegrowth growthofofgeneral general 150 expensesto expenses tothe thesingle-digit single-
Slide 26: Group P&L: Profit before/after taxes
Group P&L: Profit before/after taxes CHF mn One-offtax One-off taxeffect effectin in1998 1998 500 Taxrate Tax rate 1997 : : 29% 1997 29% 397 +7% 400 1998 : : 16% 1998 16% 370 1999+: : 29% 1999+ 29% 290 302 300 268 -11% 202 +4% 200 168 257 145 131 without 113 one-off 100 tax effect 0 95 96 97 98 99 P
Slide 27: Outlook
Outlook l Assets under management and the resulting bottom line to grow by 15 percent p.a. on average through organic growth l Julius Baer positioned as a niche player l Business based on diverse activities, no monoculture l Expansion of internet presence in 2000 planned l Leadership seminars for 20
Slide 28: Appendix 1: Group profit and loss account
Appendix 1: Group profit and loss account CHFmn CHF mn 1998 1999 Change 1998 1999 Change Netinterest Net interestincome income 140 144 3% 140 144 3% Commissions/servicefees Commissions/service fees 693 852 23% 693 852 23% Resultsfrom Results fromtrading tradingoperations operations 175 190 8% 175 19
Slide 29: Appendix 2: Segment reporting overview
Appendix 2: Segment reporting overview CHF mn Priv. Inst. Inv. AM Trad./ Corp. Group Bank Asset Funds total Brok. Cent. total Net operating income 449 133 97 678 464 70 1212 Operating expenses 305 69 39 413 270 133 816 Result before taxes 144 64 58 265 194 -63 396 Taxes 33 20 15 68 59 -12 115 Result
Julius Baer Holding — Investor Presentation (May 2000) on 6ix