Investor presentation May 2018 18
Van Lanschot Kempen at a glance Profile ile Solid id perf rfor orman ance ce on all l key ey financia ials ls FY 2017 17 FY 2016 16 • Clear choice for wealth management targeting institutional and Net result • € 94.9m € 69.8m private clients Underlying net result • € 112.3m € 81.3m • Strong brand names, reliable reputation, rich history • Mutually reinforcing core activities with their own distinct culture and 20.3% 18.6% CET I ratio, fully loaded • positioning as niche players 22.1% 19.5% Total capital ratio, fully loaded • • Straightforward governance model with highly experienced 6.7% 6.9% Leverage ratio, fully loaded • Executive Board 100.5% 100.6% Funding ratio • • Capital increasingly freed up by winding down corporate loan € 83.6bn € 69.4bn portfolio Client assets • € 69.2bn € 54.6bn • Strong balance sheet, capital ratios, cash reserves and diversified AuM • funding mix € 9.6bn € 9.1bn Loan book • Our wealt ealth manag ageme ment t strate ategy y Finan ancia ial l targe rgets ts • Strategy 2020: next phase of wealth management strategy, building FY 2017 Target t 2020 on a strong foundation, adapting to a changing world, taking advantage of opportunities and creating value for clients • Common Equity Tier I ratio 20.3% 15 - 17% • Launch of € 60m investment programme for mid 2016-19 to • Return on CET I 10.4% 10 - 12% implement omnichannel Private Banking model and finalise IT transformation • Efficiency ratio 76.2% 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 Banking loan portfolio • 2020 financial targets and revised capital and dividend policy defined 2
Strong results in 2017 driven by successful deployment of strategy Net result rises to € 94.9m Client assets € 83.6bn (+21%) (2016: € 69.8m) Assets under management Underlying net result rises to € 112.3m € 69.2bn (+27%) (2016: € 81.3m) Capital ratios continue to improve Dividend per share up CET I ratio at 20.3% from € 1.20 to € 1.45 3
Highlights trading update Q1 2018 • First-quarter results of 2018 in line with last two quarters of previous year • Net result is lower than the first quarter in 2017, primarily due to the continuing pressure Result lts s on interest margins and the absence of a significant contribution from capital gains versus last year • Net inflows of € 0.4 billion to Private Banking, Evi and Asset Management: clients remain focused on the long term despite stock-market volatility Client t asset ets • Negative price movements in financial markets led to a net reduction in client assets of € 1.0 billion to € 82.7 billion. AuM decreased to € 68.3 billion • Fully loaded Common Equity Tier I ratio turned out at 20.2% • The new IFRS 9 accounting standard came into force on 1 January. As anticipated, the Capita tal l impact of this on our CET I ratio is around 20 basis points 4
Van Lanschot Kempen is a specialist, independent wealth manager
Van Lanschot Kempen’s rich history reaches back over 280 years Sale of portfolio Acquisition non-performing Strategic real estate loans UBS’s Dutch wealth review management activities Launch of Evi New name: Pension Van Lanschot Kempen Acquisition Van Lanschot Acquisition Launch of Return of € 1 per share fiduciary activities Switzerland CenE Bankiers Evi van Lanschot to 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 Acquisition Staalbankiers private banking activities 6
As a wealth manager Van Lanschot Kempen builds on the experience of its core activities Guiding clients in achieving their goals Digital savings and investment service to preserve and build wealth, • • Responsive, transparent and tailored personal service with an online coach • Specialist services for entrepreneurs, family businesses, high net- Focus on new entrants to the wealth market and clients who make a • • worth individuals, business professionals and executives, healthcare conscious choice for online service delivery professionals, foundations and associations In tune with the trend towards increasing individual responsibility in • AuM value of € 22.8bn areas such as pensions and healthcare • Savings and deposits of € 8.1bn, loan book of € 7.8bn AuM of € 0.9bn, savings of € 0.6bn • • Strong network and local presence in 37 offices – 27 in the Active in the Netherlands and Belgium • • Netherlands, 8 in Belgium and 2 in Switzerland Specialist European asset manager with a sharp focus and a clear Niche player combining equities research and trading with mergers & • • investment philosophy acquisitions services, capital market transactions and debt advisory Focusing on a number of investment strategies: small caps, real estate, services • high-dividend equities, fixed-income securities and funds of hedge Focusing on institutional investors, corporates, financial institutions and • funds public/semi-public entities Offering fiduciary services, with fully comprehensive asset Pursuing a niche strategy in the European market for real estate, life • • management solutions sciences, infrastructure, financial institutions & fintech, and the Benelux Targeting open architecture-based banks and asset managers, market • pension funds, insurers, foundations and associations, and family Successful structured products franchise and global property index • offices product offering AuM value of € 56.4bn*, AuMG of € 3.5bn Offices in Amsterdam, Antwerp, London and New York • • Offices in Amsterdam, London, Edinburgh and Paris • 7 * As of 31 December 2017, including € 10.9bn of AuM managed for Van Lanschot Private Banking and Evi
Next phase of our wealth management strategy Key themes for core activities Evi Private 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 Merchan ant 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 8
2017 annual results Strong results driven by successful strategy implementation
Strong operating performance and good progress on Strategy 2020 Duurzaam+ offering Private equity Dutch wealth management investments activities of Next steps in Outsourcing mortgage Successful integration Net inflow AuM Private New product offerings omnichannel private servicing completed of bolt-on acquisitions Banking: € 0.5bn launched banking model and payments on track Total shareholders Successful in all our +45% increase in Net inflow AuM Asset Four new investment distribution: € 2.20 per Merchant Banking number of AuM clients Management: € 9.0bn strategies launched share niches 10
Strong overall performance Net profit it Under derlyi lying net result lt Divide dend per share re € m € m € +21% +38% +36% 1.45 112.3 94.9 1.20 81.3 69.8 2016 2017 2016 2017 2016 2017 Asset ets under er Manag agement ent Client ent asset ets Commo mon Equity ity Tier er I ratio io € bn € bn % +21% +176 bps +27% 83.6 20.3 18.6 69.2 69.4 54.6 2016 2017 2016 2017 2016 2017 11
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