Investor presentation May 2019
Van Lanschot Kempen at a glance Profile ile Solid id perf rfor orman ance ce on all l key ey financia ials ls 201 018 201 017 Well capitalised, profitable wealth manager with a strong • Net result € 80.3m € 94.9m • specialist position in the market Underlying net result € 103.0m € 112.3m • Strong brand names, reliable reputation, rich history • Clear choice for wealth management, targeting private, • 20.3% CET 1 ratio, fully loaded 21.4% • institutional and corporate clients Total capital ratio, fully loaded 23.5% 22.1% • Tailored, personal and professional service • Funding ratio 106.2% 100.5% • Mutually reinforcing core activities, each with its own distinct • culture and positioning as a niche player € 83.6bn Client assets € 81.2bn • Strong track record in transformation processes and de-risking AuM € 67.0bn € 69.0bn • • of the company Loan book • € 8.6bn € 9.1bn Strong capital position and balance sheet • Our wealth ealth manage ageme ment t strate ategy gy 2023 23 financial cial targe rgets Supported by our strong client relationships we want to be a 2018 2018 Target 2023 2023 leading player in our relevant markets and geographies Common Equity Tier 1 ratio • 21.4% 15 - 17% Our strategic pillars: Return on CET1 9.8% 10 - 12% • Accelerate growth – organically and inorganically • Efficiency ratio Activate our full potential 79.4% 70 - 72% • • Advance through digitalisation and advanced analytics • Dividend pay-out 61.1% 50 - 70%* • Adapt the workforce • *Of underlying net result attributable to shareholders 2
Highlights trading update Q1 2019 • Net result significantly up on first quarter 2018 on the back of book profits from sale of stake in AIO II (Medsen) and that in VLC & Partners Results • First-quarter results excl. these book profits are in line with year-earlier figures • Positive price movements push client assets up by 6% to € 86.0bn and AuM by 7% to € 71.8bn • Total net outflow of € 0.3bn, most of which was at Asset Management Client assets • Private Banking and Evi clients showed some reluctance to invest due to the adverse stock market climate in the fourth quarter 2018 and a number of clients took profits • Further optimised capital base through successful placement of € 100m additional Tier 1 bond • Fully loaded CET1 ratio (excl. retained earnings) stands at 22.6% Capital • The higher CET1 ratio is partly the result of one-off factors 3
Van Lanschot Kempen is a specialist, independent wealth manager
Van Lanschot Kempen’s rich history reaches back over 280 years Acquisition Staalbankiers ’ private banking activities Strategic review Successful placement secondary offering of 30% stake Capital return Launch of of € 1.50 per Van Lanschot Acquisition Strategy 2020 Evi van update share Switzerland CenE Bankiers Lanschot 1737 2019 1991 1995 1999 2004 2007 2013 2015 2016 2017 2018 Acquisition Cornelis van Van Lanschot Van Lanschot Acquisition Next steps wealth Sale of portfolio UBS’ Dutch wealth Lanschot founds Belgium listed on Kempen & Co management non-performing management Van Lanschot in Amsterdam stock strategy defined real estate loans activities ‘ s-Hertogenbosch exchange and financial targets set for Acquisition New name: 2023 fiduciary activities of MN UK Capital return of € 1 per share to shareholders 5
Our transformation to a specialised wealth manager since 2013 Commissions missions as % of operat eratin ing Risk-weighte ighted asset sets s ( € bn bn) Client ent asset ets s and AuM ( € bn bn) income me ( € m) m) 81.2 58.7% 10.5 +17.5pps +55% 14.2 -56% 41.3% 52.3 6.1 4.6 11.4 67.0 4.1 40.9 4.4 0.5 2012 2018 2012 2018 2012 2018 AuM Savings and other 100% = 525.3 Private banking and other Private Banking Corporate Banking 100% = 499.2 Commo mon Equity ity Tier er 1 ratio tio Retu turn on Commo mon Equity uity Tier 1 Under derlyi lying net result lt ( € m) m) 21.4% 9.8% 103.0 +10.4pps +22.5pps 11.0% +91.9 9.8% -12.7% 11.1 2012 2018 2012 2018 58.7% 2012 2018 6
As a wealth manager Van Lanschot Kempen builds on the experience of its core activities Private Banking • Online wealth Asset management • • Merchant Banking • Discretionary asset Comprehensive fiduciary • management services for • Equities research and • wealth management management, investment the mass affluent and trading, corporate services advice, financial planning, millennials finance and debt advisory Niche investment • savings and deposits, Online wealth • services strategies (high div. structured products and management solutions, Focus on European • equities, small-caps, real lending discretionary asset corporates and worldwide estate, credits, Servicing entrepreneurs, • management, savings and institutional clients; infrastructure, government family businesses, high net- pension solutions bonds, etc.) sectors covered are real worth individuals, business Focus on European clients; • estate, life sciences, institutional, wholesale professionals and financial institutions & distribution, family offices executives, healthcare fintech, infrastructure, and endowments professionals, foundations maritime & offshore, and and associations the Benelux region AuM: € 21.3bn • AuM client base c. 16,000 • AuM: € 55.5bn*, AuMG: • Savings and deposits: AuM: € 0.9bn • • € 3.4bn € 8.3bn, loans: € 7.6bn Savings: € 0.5bn • Offices in NL, BE and CH Focus on NL and BE • • Offices in NL, UK, FR • Offices in NL, BE, UK, US • * As of 31 December 2018, including € 10.7bn of AuM managed for Van Lanschot Private Banking and Evi 7
We want to be a leading wealth manager in our markets • Well-capitalised, profitable wealth manager with a strong position in the market Contin inue ue our • Knowledge and experience, personal, client-focused approach, unique combination of activities wealth th and track record set us apart from the competition, while offering growth opportunities manageme ment strateg ategy • A leading wealth manager in the Benelux region Leadin ing player er in • A prominent, active investment manager that delivers alpha in illiquidity, income and ESG in our relevan ant t Europe market ets • The leading fiduciary manager in the Netherlands, challenger in UK fiduciary market • The preferred trusted adviser in selected niches in merchant banking across Europe • The number one online wealth management alternative for the mass affluent in selected markets • Conviction-based, active investor, focusing on the long term From responsible sible • We can achieve the most significant social and environmental impact via our clients’ assets and to to sust stain ainab able le we aim to increase our positive contribution and visibility invest stin ing • CET 1 ratio: 15-17% 2023 financia cial l • RoCET 1: 10-12% target ets • Dividend policy: 50-70% of underlying net result attributable to shareholders • Efficiency ratio: 70-72%, adjusted to reflect both our profile as a wealth manager and the economic environment in which we operate 8
We have defined four strategic pillars that enable us to deliver on our promises • Pursue a solutions-led • Create solutions based on Accele elerate rate approach building on client Advan ance ce throu ough superior insights into client needs grow owth- needs & market developments digit italis alisat ation ion and d • Consider acquisitions in • Enhance client experience organ anicall ically analytics lytics existing and contiguous • Streamline products, processes and markets and systems inorganicall ically • Offer clients the full potential • Empower our people to of services and products from embrace technology and adopt our group and open a more data-driven way of Adapt apt the architecture platform working and decision-making Activate ivate our full l workf orkforce orce • Benefit from knowledge • Embrace an agile approach with pote tentia tial sharing, make optimum use of multidisciplinary teams resources and reduce overlap • Hire new talent to bring in different skills and capabilities 9
Annual results 2018: net profit over € 80 million Next steps wealth management strategy defined
2018 highlights 11
Challenging market conditions in 2018 Intere erest st rate tes Equity ity indices ces 10-year swap AEX rate MSCI-Europe 3-month Euribor Negative market performance Current low interest rates affect results in AuM decline interest income Source: Bloomberg 12
Stable results in challenging market Net result € 80.3m (2017: € 94.9m) Commission +10% ( € 293.2m) Underlying net result € 103.0m Interest -11% ( € 175.6m) (2017: € 112.3m) Operating expenses Efficiency ratio 79.4% € 396.4m (+1%) (2017: 76.2%) Client assets € 81.2bn (-3%) Net inflow AuM € 1.0bn AuM € 67.0bn (-3%) Strong capital ratios Dividend per share € 1.45, CET 1 ratio rises to 21.4% unchanged from 2017 13
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