Investor presentation September 2017
Van Lanschot Kempen at a glance Profile ile Solid id perf rfor ormance mance on all l key ey financia ials ls H1 2017 17 H2 2016 16 H1 2016 16 • Clear choice for wealth management targeting institutional and Net result • € 62.3m € 38.3m € 31.5m private clients Underlying net result • € 69.6m € 43.6m € 37.7m • Strong brand names, reliable reputation, rich history • Mutually reinforcing core activities with their own distinct culture and 19.6% 18.6% 16.9% CET I ratio, fully loaded • positioning as niche players 21.8% 20.9% 18.2% Total capital ratio • • Straightforward governance model with highly experienced 7.0% 6.9% 6.4% Leverage ratio, fully loaded • Executive Board 99.1% 100.6% 94.0% Funding ratio • • Capital increasingly freed up by winding down corporate loan € 72.0bn € 69.4bn € 66.2bn portfolio Client assets • € 60.1bn € 57.5bn € 54.3bn • Strong balance sheet, capital ratios, cash reserves and diversified AuM • funding mix € 9.5bn € 9.6bn € 10.3bn Loan book • April l 2016 16 strategy rategy upda date te Finan ancia ial l targe gets ts • Next phase of wealth management strategy: building on a strong H1 2017 Target t 2020 foundation, adapting to a changing world, taking advantage of opportunities and creating value for clients • Common Equity Tier I ratio 19.6% 15% - 17% • Launch of € 60m investment programme for mid 2016-19 to • Return on CET I 12.5% 10 - 12% implement omnichannel Private Bank, accelerate Evi development and finalise IT transformation • Efficiency ratio 72.1% 60 - 65% • Efficiency gains to result from partnerships for standardised universal banking services, streamlining of operations and support functions, and transfer to omnichannel Private Banking offering • Continued run-off of Corporate Bank • 2020 financial targets and revised capital and dividend policy defined 2
Van Lanschot Kempen is a specialist, independent wealth manager
Van Lanschot Kempen’s rich history reaches back 280 years Sale of portfolio Acquisition non-performing Strategic real estate loans UBS wealth review management activities in the Launch of Evi Netherlands Pension Acquisition Proposal to return Van Lanschot Acquisition Launch of € 1 per share to fiduciary activities Switzerland CenE Bankiers Evi van Lanschot shareholders of MN UK 1737 1991 1995 1999 2004 2007 2013 2014 2015 2016 2017 Cornelis van Van Lanschot Van Lanschot Acquisition Introduction Strategy update Lanschot founds Belgium listed on Kempen & Co Vermogensregie 2020 Van Lanschot in Amsterdam stock ‘s -Hertogenbosch exchange Launch Evi4Kids Acquisition Staalbankiers private banking activities 4
As a wealth manager Van Lanschot builds on the experience of its core activities Evi Private Banking Financial guidance to help clients achieve their goals Digital savings and investment service to preserve and build wealth, • • Specialist services for entrepreneurs, family businesses, high net- with an online coach • worth individuals, business professionals and executives, healthcare Focus on new entrants to the wealth market and clients who make a • professionals, foundations and associations conscious choice for online service delivery Responsive, transparent and tailored personal service In tune with the trend towards increasing individual responsibility in • • Strong network and local presence in 37 offices – 27 in the areas such as pensions and healthcare • Netherlands, 8 in Belgium and 2 in Switzerland Active in the Netherlands and Belgium • AuM value of € 19.6bn, Loan book of € 8.0bn Client assets of € 1.5bn • • Acquisition of UBS’s wealth management activities in the • Netherlands is expected to add up to € 2.6bn to AuM Savings and deposits of € 9.4bn • Asset Management Merchant t Bankin ing Specialist European asset manager with a sharp focus and a clear Specialist services including equities research and trading, mergers • • investment philosophy & acquistions services, capital market transactions and debt advisory Focusing on a number of investment strategies: small caps, real services • estate, high-dividend equities, fixed-income securities and funds of Focusing on institutional investors, corporates, financial institutions • hedge funds and public and semi-public entities Targeting open architecture-based banks and asset managers, Pursuing a niche strategy and, in addition to acquiring a substantial • • pension funds, insurers, foundations and associations, and family share of the Benelux market, has evolved into an international offices market leader in European real estate and life sciences, with financial Offering institutional clients a fiduciary service that provides them institutions & fintech added last year as a new niche in the European • with fully comprehensive asset management solutions operations Offices in Amsterdam, London and Edinburgh Offices in Amsterdam and New York • • AuM value of € 48.9bn* • * As of 30 June 2017. AuM of Asset Management including € 9.5bn of AuM managed for Van Lanschot Private Banking and Evi 5
Strategic update April 2016 : how do we respond to a changing world For our client ents For our sector Opport rtunit unities ies More demand for advice and wealth planning Low intere erest st rate te envir iron onme ment Interest in investment products More e indiv ividu idual al More demand for online Stricte icter regula lation tion respon ponsib ibil ilit ity services Development of omni- Technol chnological ogical change ges s channel private banking Change ges s in pensio ions and digit italis alisat ation ion Growth in fiduciary asset management 6
Next phase of our wealth management strategy Key themes for core activities Evi Privat ate Bankin ing Offer accessible, high-quality online services Improve client experience with omnichannel • • backed by the know-how of a private bank service model Play into the trend towards more individual Grow client assets by exploiting opportunities and • • responsibility, for example in pensions reinforcing frontline effectiveness Asset et Manageme ment Merchant t Bankin ing Expand distribution to new markets and client Continue employing capital-light business model • • segments Build on solid, sustainable position in selected • Launch new investment strategies niches • Continue developing UK as a second home market • Supported by Right-size support Continue wind down Finalise transformation of Outsourcing standardized, departments and Corporate Banking IT landscape universal banking services streamline operations 7
Good progress on Strategy 2020 Dutch private banking activities of Next steps in Outsourcing non-core Bolt-on acquisition omnichannel private Net AuM inflow banking services in Bolt-on acquisitions strategy banking model progress Increased client Significant growth in Strong track record for interaction and Relevant in our niches fiduciary services investment strategies retention 8
2017 half-year results
Robust performance and proposal to return capital Net result rises to € 62.3m Client assets € 72.0bn (+4%) (H1 2016: € 31.5m) Assets under management Underlying net result rises to € 69.6m € 60.1bn (+4%) (H1 2016: € 37.7m) Capital ratios continue to improve Proposal to return € 1 per share to shareholders CET I ratio at 19.6% 10
Highlights H1 2017 Net result t rises s by 98% to € 62.3m .3m (H1 2016: : € 31.5m .5m) Stron ong increase ease Underlying net result rises to € 69.6m (H1 2016: € 37.7m) • Commission income increases 13% to € 132.3m (H1 2016: € 117.4m) • in under derly lyin ing Income from securities and associates rises to € 29.7m (H1 2016: € 8.5m) • net result lt Operating expenses fairly stable at € 196.8m • Improving credit quality leads to net release of loan loss provision of € 1.9m (H1 2016: net release of € 1.7m) • Asse sets ts under management t increas ase by 4% to € 60.1b .1bn (2016 16: : € 57.5 7.5bn) Furth rther er Private Banking assets under management grows to € 19.6bn with a net inflow of € 0.3bn in H1 2017 • increase ease in With a shift from savings to assets under management, total client assets at Evi remain stable at € 1.5bn • New Asset Management mandates lead to growth in assets under management to € 39.5bn, with a net inflow of € 1.3bn • client ent asset ets Clients assets increase by 4% to € 72.0bn (2016: € 69.4bn) • Stron ong balance ce sheet Capita pital position sition CET I ratio (fully loaded) reaches 19.6% (2016: 18.6%) • strengt engthened ened Fully loaded leverage ratio amounts to 7.0% (2016: 6.9%) • Next step in achieving our ambition to return at least € 250 million in capital to our shareholders by 2020: proposal to • furth ther er return € 1 per share Good od progres ress s Importan tant steps s made in Strateg ategy 2020 Acquisition of UBS's domestic wealth management activities in the Netherlands • on Strate ategy y Integration of Staalbankiers ’ private banking activities successfully completed • 2020 20 Further development of omnichannel private banking model • Good progress on outsourcing of servicing of mortgages and payments with Stater and Fidor respectively • 11
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