Investor presentation August 2020
Van Lanschot Kempen at a glance Profile ile Solid id perf rfor ormance mance on all l key ey financia ials ls Well capitalised, profitable wealth manager with a strong • H1 2020 H2 2019 H1 2019* specialist position in the market Net result • €9.5m €13.8m €31 .4m Strong brand names, reliable reputation, rich history • Clear choice for wealth management, targeting private, • • CET 1 ratio** 24.0% 23.8% 22.4% institutional and corporate clients Total capital ratio • 27.0% 26.9% 25.5% Tailored, personal and professional service • Mutually reinforcing core activities, each with its own distinct • Client assets • € 103.4bn € 102.0bn €97.3bn culture and positioning as a niche player AuM • € 89.2bn € 87.7bn €82.6bn Strong track record in transformation processes and de-risking • of the company Loan book • € 8.6bn €8.7bn € 8.9bn Strong capital position and balance sheet • (excluding provisions) Our wealt ealth manag ageme ment t strate ategy y 2023 23 financial cial targe rgets Supported by our strong client relationships we are a leading H1 2020 Target 2023 player in our relevant markets and geographies Common Equity Tier 1 ratio • 24.0% 15 - 17% Our strategic pillars: Return on CET1 • 1.2% 10 - 12% Accelerate growth – organically and inorganically • Activate our full potential Efficiency ratio 93.2% 70 - 72% • • Advance through digitalisation and advanced analytics • Dividend pay-out 50 - 70%*** • Adapt the workforce • *excluding one-time gains from two sales **At 31 December 2019 including retained earnings. At 30 June 2019 and 30 June 2020 excluding retained earnings 2 ***Of underlying net result attributable to shareholders
Van Lanschot Kempen a specialist, independent wealth manager
Van Lanschot Kempen’s rich history reaches back over 280 years Acquisition Staalbankiers ’ private banking activities Strategic Partnership review Successful with a.s.r. bank placement secondary offering of 30% stake Acquisition Capital return Hof Hoorneman Launch of of €1.50 per Acquisition Strategy 2020 Evi van Bankiers update share CenE Bankiers Lanschot 1737 2019 2020 1999 2004 2007 2013 2015 2016 2017 2018 Acquisition Cornelis van Van Lanschot Acquisition Next steps wealth Sale of portfolio UBS’ Dutch wealth Lanschot founds 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 €1.50 per share Capital return of €1 per share to shareholders 4
Our transformation to a specialised wealth manager Commissions missions as % of operat eratin ing Client ent asset ets s and AuM (€ bn bn) Risk- weighted assets (€bn) income (€m) 102.0 10.5 57.1 +15.8 pps 14.3 +95% 41.3 -60% 6.1 52.3 4.2 11.4 87.7 4.4 3.9 40.9 0.3 2012 2019 2012 2019 2012 2019 AuM Savings and other Private Banking and other Corporate Banking 100% = 525.3 100% = 508.7 Underlying net result (€m) Retu turn on Commo mon Equity ity Tier r 1 * Commo mon Equity ity Tier er 1 ratio tio 23.8% 10.5% 108.8 +12.8 pps +23.2 pps +97.7 11.0% 11.1 -12.7% 2012 2019 2012 2019 2012 2019 * Based on underlying net result attributable to shareholders 5
As a wealth manager Van Lanschot Kempen builds on the experience of its core activities Private ate Banking ing Evi Asset et Manageme ement nt Merchan hant t Banking ing ‒ Discretionary asset ‒ Online wealth management ‒ Comprehensive fiduciary ‒ Equities research and management, investment services for the mass affluent wealth management trading, corporate advice, financial planning, and Millennials services finance and debt advisory savings and deposits, ‒ Online wealth management ‒ Niche investment strategies services structured products and solutions, discretionary asset (high div. equities, small- ‒ Focus on European lending management, savings and caps, real estate, credits, corporates and worldwide ‒ Servicing entrepreneurs, pension solutions infrastructure, etc.) institutional clients; sectors family businesses, high net- ‒ AuM client base c. 23,000 ‒ Focus on European clients; covered are real estate, life worth individuals, business ‒ AuM : €1bn institutional, wholesale sciences & healthcare, professionals and executives, ‒ Savings: € 0.6bn distribution, family offices financial institutions & healthcare professionals, ‒ 22 FTEs and endowments fintech, infrastructure, foundations and associations ‒ Focus on NL and BE ‒ AuM: € 76.0bn*, AuMG: maritime & offshore, as well ‒ AuM: € 23.5bn € 3.2bn as our local alpha coverage ‒ Savings and deposits: ‒ 271 FTEs ‒ 126 FTEs €8.9bn, loans: € 8.0bn ‒ Offices in NL, UK, FR ‒ Offices in NL, BE, UK, US ‒ 615 FTEs ‒ Offices in NL, BE, CH * As of 30 June 2020, including € 11.3bn of AuM managed for Van Lanschot Private Banking and Evi 6
We are a leading wealth manager in our markets • We’re a well -capitalised, profitable wealth manager with a strong position in the market Focuse cused wea ealth lth • We believe that our knowledge and experience, personal, client-focused approach, unique combination manag agem ement t of activities and track record set us apart from the competition strate ategy • We’re convinced our strategy offers ample growth opportunities • A leading wealth manager in the Benelux region Leading ading player ayer • The number one online wealth management alternative for the mass affluent in selected markets in our relevant evant • A prominent, active investment manager that delivers alpha in illiquid markets, as well as in income- marke rkets generating strategies and ESG in Europe • The leading fiduciary manager in the Netherlands, and a challenger in UK fiduciary market • The preferred trusted adviser in selected merchant banking niches across Europe • We’re a conviction -based, active investor, focusing on the long term From m • We’re convinced we can achieve significant social and environmental impact by advising our clients in respon ponsib ible le to making sustainable investment decisions susta tain inable able • We aim to increase our positive contribution and visibility invest sting • CET 1 ratio: 15-17% 2023 23 financial cial • RoCET 1: 10-12% targe rgets • Dividend policy: 50-70% of underlying net result attributable to shareholders • Efficiency ratio: 70-72% 7
Our strategic framework Business ness model Value e proposi ositio tion Van Lanschot Kempen is a wealth • We follow a solutions-led approach that management house focuses on the longer-term needs of our clients • In being client-centric we benefit from using data and analytics to improve our quality of service Prese servatio ation and creatio tion of wealth lth in a sustainabl ainable way for our r clien ents ts and the Objectives ctives an and metrics ics 2023 Organisa isati tion on an and cap apabil iliti ities es societie cieties s we serve • Return on CET 1 capital: 10-12% • We work without silos • Efficiency ratio: 70-72% • Our employees are client-focused • CET 1 ratio: 15-17% professionals able to optimally use data • Further AuM growth and digital channels • Improved net result Executio ution n method odolog logy Organic anic compo pone nents nts Inorg rgan anic ic comp mpone nent nts 8
We have defined four strategic pillars that enable us to deliver on our ambitions • Pursue a solutions-led • Create solutions based on approach building on clients’ Accele elerate rate superior insights into clients’ Advan ance ce throu ough needs growt owth- needs & market developments digit italis alisat ation ion and d • Consider acquisitions in • Enhance client experience organ anicall ically analy lytics tics 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
Our progress as a sustainable wealth manager in H1 2020 AuM at Private Banking invested 65% of fund managers in dedicated sustainable or impact on the approved list meet investing solutions grew by more the sustainability criteria than 10% to €2.3 billion We engaged with From 2023, we’ll actively offer our clients only sustainable 68 companies in which investment solutions our funds invest 73% of our employees feel Net Promoter Score well prepared to work with • Private Banking at 22 new technology • Evi at 6 10
2020 half-year results
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