2010 Results and Outlook

Transcription

1 VZ Holding Ltd Beethovenstrasse 24 CH-8002 Zurich Telephone: Fax: vermoegenszentrum.ch vzonline.ch VZ Group 2010 Results and Outlook Zurich, 8 March 2011

2 Disclaimer Forward-looking statements This presentation contains forward-looking statements that involve known and unknown risks, uncertainties or other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements. Against the background of these uncertainties, readers should not rely on such forward-looking statements. The company assumes no responsibility to up-date forward-looking statements or to adapt them to future events or developments. Page 1

3 Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 2

4 Summary 2010 Milestones Successful 2010 despite difficult environment - increased insecurity caused by debt crisis - strong Swiss franc - volatile financial markets Steady inflow of new clients - more consultancy projects (+17.3%) - more wealth management clients (+16.8%) Growth in financial consulting capacity (+14.1%) - below average because of headcount freeze in 2008/ successful recruiting of new talents to ensure future expansion NNM per consultant at upper end of long-term target corridor Funds under management ( ) - assets under management: CHF million ( : CHF million) - insurance premium: CHF 266 million p.a. ( : CHF 252 million) Financials Top line +20.7% to CHF 132,9 million - management fees +20.9% - banking revenues +23.3% - consulting fees +18.3% EBITDA margin above expectation at 48.0% Costs on track as forecast - personnel expenses +11.5% - other operating expenses +8.7% Bottom line +34.4% to CHF 49.3 million (2009: adjusted) Stronger equity ratios due to - lower balance sheet total - additional equity Page 3

5 Revenues: return to growth path in 2010 Full years in CHF million Half years in CHF million Total revenues +20.7% Management fees +20.9% yoy - AuM +18.9% (average) - higher portion of discretionary portfolio management mandates - small contribution of performance fees Banking revenues +23.3% - more clients on banking platform - continuously low interest margin Consulting fees +18.3% - increased capacity - higher demand from private clients - more comprehensive consulting projects 1H % yoy - inflated by basis effect (1H09 financial crisis) 2H % yoy - slowed down by strong Swiss franc 1H08 2H08 1H09 2H09 1H10 2H10 Consulting fees Banking revenues Management fees Page 4

6 Revenues: simular segment distribution in CHF million 100% = % 10% 11% 11% 9% Corporate client segment s share declines to 9% - private client segment +22.9% yoy - corporate client segment +3.3% yoy 89% 90% 89% 89% 91% Banking revenues reported in private client segment Corporate client segment Private client segment Page 5

7 Net profit: further leverage supports growth Full years in CHF million * ** Net profit +34.4% (2009: adjusted) Operational margin (EBITDA) 48.0% vs. 43.3% in 2009 (adjusted) - revenue growth rate 2010: +20.7% - operating expense growth rate 2010: +10.8% (2009: adjusted) Net profit margin 37.1% vs. 33.4% in 2009 (adjusted) Half years in CHF million ** 1H % yoy - inflated by basis effect (1H09 financial crisis) 2H % yoy - slowed down by strong Swiss franc 1H08 2H08 1H09 2H09 1H10 2H10 * adjusted for one-time costs (IPO and VZ Depository Bank) ** adjusted by revaluation of pension liabilities Page 6

8 Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 7

9 Private client segment: steady inflow of new clients Financial consulting Wealth management # of consulting projects in CHF million AuM - PM mandates Other* NNM (12 months) Number of WM clients Initial meetings +10.2% Consulting projects +17.3% Consulting fees +21.7% * Mortgages under management and portfolios under client management AuM +15.5% NNM +26.1% WM clients +16.8% Page 8

10 Private client segment: capacity growth continued Capacity growth Full-time equivalents (FTE) with client and budget responsibility (average) Financial consulting performance NNM per financial consultant (FTE) e e Financial consulting ca mio mio 19.9 mio mio. Wealth management ca. 38 Financial consulting capacity is the main driver behind the VZ business model Wealth management: responsible for long-term relationship with portfolio clients Current trainees assure future capacity increase Page 9

11 Branch office network Switzerland Germany Basel Liestal Baden Aarau Zug Solothurn (1.7.) Luzern Neuchâtel Bern Schaffhausen Winterthur Zürich St. Gallen Rapperswil Meilen (tbd) Horgen (1.1.) Thun Düsseldorf (1.3.) Genève Lausanne Frankfurt Nürnberg München branches satellites New branches in 2011 Page 10

12 VZ Depository Bank: growing client base Number of clients Number of clients +25.8% Overall banking revenues +23.3% Net interest margin still low, slight improvement in 2H More than 85% of all wealth management clients use VZ bank s custodian services Higher investment ratio within client portfolios and decrease of cash deposits from CHF 725 million ( ) to CHF 654 million ( ) Assets: low-risk profile, short time to maturity - 47% money market (2009: 62%) - 41% Swiss prime residential mortgages (2009: 28%) - 12% bonds (2009: 9%) - average time to maturity 1.2 years Page 11

13 Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 12

14 Corporate client segment: upswing still deferred Premium volume under management in CHF million p.a Revenues +3.3% Economic downturn still affects revenue growth - 1H % yoy - 2H % yoy Lower insurance premiums per client - clients downsized in the economic crisis - prices for insurance coverage erode EBIT margin declines to 16.7% (2009: 21.8%) - measures in order to increase profitability initiated Page 13

15 Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 14

16 Financials: income statements (1) in CHF million* adjusted** yoy adj Consulting fees % Banking revenues % Management fees % Other operating revenues n.r. Total operating revenues % Personnel expenses Other operating expenses % +8.7% Total operating expenses % EBITDA % * numbers may differ from the published income statements due to rounding differences ** adjusted for the reduced personnel expenses due to a revaluation of pension liabilities Page 15

17 Financials: income statements (2) in CHF million* adjusted** adj yoy EBITDA % Depreciation and amortisation % EBIT % Net finance income n.r. Profit before income tax % Income tax % Net profit % * numbers may differ from the published income statements due to rounding differences ** adjusted for the reduced personnel expenses due to a revaluation of pension liabilities Page 16

18 Financials: personnel expenses in CHF million* % 40.6% H08 2H % 40.0%** 38.1% ** 1H09 2H % 38.7% H10 2H10 45% 40% 35% 30% 25% 20% 15% Personnel development HC FTE Accelerated recruiting in 2H10 1H % (FTE) 2H % Stable personnel expense ratio below 40.0% Personnel expenses Personnel expense ratio (personnel expenses / revenues) * numbers may differ slightly from the published income statements due to rounding differences ** adjusted for the reduced personnel expenses due to a revaluation of pension liabilities Page 17

19 Financials: other operating expenses in CHF million* % 15.0% % % % % % 16% 14% 12% 10% 8% Marketing expenses typically lower in 2H Business expansion causes higher other operating expenses in % Tangible economies of scale 4 4% 2 2% 0 1H08 2H08 1H09 2H09 1H10 2H10 0% Other operating expenses Other operating expense ratio (other operating expenses / revenues) * numbers may differ slightly from the published income statements due to rounding differences Page 18

20 Financials: EBITDA and margin in CHF million* % 41.0% % 46.9%** 39.1% ** 48.9% 47.0% % 45% 40% 35% 30% 25% EBITDA +33.7% to CHF 63.7 million from CHF 47.7 million (2009: adjusted) EBITDA margin 48.0% in 2010 vs. 43.3% in 2009 (adjusted) 45% margin realistic long term target 5 1H08 2H08 1H09 2H09 1H10 2H10 20% EBITDA EBITDA margin (EBITDA / revenues) * numbers may differ slightly from the published income statements due to rounding differences ** adjusted for the reduced personnel expenses due to a revaluation of pension liabilities Page 19

21 Financials: EBIT and margin in CHF million* % % % 45.0%** 36.8% ** % 47.1% % 45% 40% 35% 30% 25% 20% 15% EBIT +35.2% to CHF 61.4 million from CHF 45.4 million (2009: adjusted) EBIT margin 46.2% in 2010 vs. 41.2% in 2009 (adjusted) 43% margin realistic long-term target 5 1H08 (adj) 2H08 1H09 2H09 1H10 2H10 10% EBIT EBIT margin (EBIT / revenues) * numbers may differ slightly from the published income statements due to rounding differences ** adjusted for the reduced personnel expenses due to a revaluation of pension liabilities Page 20

22 Balance sheets in CHF million* Cash & cash equivalents Short-term investments Marketable securities 0.8 Swiss prime residential mortgages CHF bonds 76.6 Subtotal financial investments Property, equipment and intangibles 6.6 Other assets 23.7 Total assets Customer deposits Other liabilities (non interest-bearing) 16.8 Total liabilities Balance sheet total declines in 2010 due to higher investment ratio in client portfolios with VZ Depository Bank No interest-bearing liabilities besides client money with VZ Depository Bank Further diversification of financial investments in order to reduce counterparty risks Average time to maturity 1.2 years as at Net cash position of CHF million whereof CHF million vested with VZ Depository Bank Total equity * numbers may differ slightly from the published balance sheets due to rounding differences Page 21

23 Equity & payout ratios Payout ratios Equity ratios in CHF million Net profit Equity ratio 14.5% 15.2% Retained earnings Dividend total Dividend per share , BIS Tier I BIS Tier II 22.7% 22.7% 21.9% 21.9% Payout ratios Total equity (31.12.) 35% % % % 25.4% 25.4% Treasury shares Number (in 000) Book value (in CHF million) Subject to the approval of the General Assembly ( ) 2 Subject to the number of treasury shares at dividend payment date Page 22

24 Agenda 1. Facts & figures 1.1 Private client segment 1.2 Corporate client segment 2. Financials 3. Outlook Page 23

25 Outlook 2011 Business development Financial targets Expansion of branch network - Horgen (CH) Dusseldorf (D) Solothurn (CH) Meilen (CH) tbd Private client segment - grow consulting capacity to (FTE) in keep NNM inflow per consultant (FTE) in target corridor of CHF million - develop and enhance online services in order to tap new client segments Revenues: plus 15 20%, if markets keep stable Operating expenses - personnel expenses: plus 12 15% - other operating expenses: plus 9 12% Balance sheets - keep low risk profile - increase equity in order to facilitate organic growth Corporate client segment - further promote executive benefit solutions - focus on cross-selling Page 24