Transforming to a specialist wealth manager Investor Presentation May 2015
Executive summary Van Lanschot’s profile Solid performance on all key financials 2014 2013 • One strategy: pure-play, independent wealth manager focusing on Net profit € 108.7m € 33.5m • preservation and creation of wealth for our clients • Net profit excluding pension gain € 54.2m € 33.5m Dividend per share € 0.40 € 0.20 • Common Equity Tier I ratio 14.6% 13.1% • Two leading brands: Van Lanschot and Kempen & Co • Total Capital ratio 15.2% 13.9% • • Leverage ratio (fully loaded) 5.3% 5.1% • Three core activities: Private Banking, Asset Management and Funding ratio 95.3% 81.3% • Merchant Banking Client assets € 57.4bn € 53.4bn • Execution of strategy on track Financial targets 2017 Private Banking: transformation successfully finalized, introduction Target • of new wealth planning advisory service, client assets of Evi grow to 2017 2014 over € 1 billion Asset Management: global funds launched in Small-caps and Real Common Equity Tier I ratio > 15% 14.6% • • Estate, flourishing third party distribution Merchant Banking: solid market share in selected niches, involved in Return on Common Equity Tier I * 10-12% 4.0% • • appealing transactions, more international clients • Corporate Banking: run-off is ahead of schedule, interest margin • Efficiency ratio 60-65% 69.8% improves * 2014 Return on Common Equity Tier I is based on net profit excluding the one-off gain from pension scheme change Van Lanschot Investor Presentation - May 2015 2
1. Profile of Van Lanschot 2. Annual results 2014 3. Trading update Q1 2015 Agenda Van Lanschot Investor Presentation - May 2015 3
1. Profile of Van Lanschot Van Lanschot Investor Presentation - May 2015
Why wealth management? Building on our distinctive strengths Supported by demographics and economic fundamentals We can build on our inherent strengths in There is room for a high-quality, high-service, private and institutional wealth management independent wealth manager in the Benelux, by working together for the benefit of new and leading to an attractive business model existing clients supported by demographics and macro economic fundamentals Our mission: Preservation and creation of wealth for our clients Van Lanschot Investor Presentation - May 2015 5
Independent specialist wealth manager Key fundamentals Ageing population • Capital surplus economy • Low growth environment • High levels of prosperity • These factors create a strong demand for superior wealth management services Distinctive offering and positioning of Van Lanschot Private Banking, Asset Management and Merchant Banking • Local intimacy combined with wealth management capabilities • A distinctive feature of Van Lanschot: our singular objective is preservation • and creation of wealth for our clients Two strong brands and a solid reputation • Van Lanschot Investor Presentation - May 2015 6
Van Lanschot builds on the experience of its three core activities Asset Management Private Banking Merchant Banking Private Bank of choice for high net- Specialist services in brokerage, • • Specialised European investment • worth individuals, entrepreneurs and mergers and acquisitions, capital management boutique with a sharp family businesses market transactions and finance advice focus and a clear investment to institutional investors, companies, philosophy Specialised services for business financial institutions and semi-public • professionals and executives, and public entities Focus on a limited number of high • healthcare professionals, and quality investment strategies: small foundations and associations Pursuing a niche strategy aimed at the • caps, property, high-dividend equities, Benelux market and European life fixed-income securities and funds of Three service concepts: Personal sciences & healthcare, resource • hedge funds Banking, Private Banking and Private efficiency & cleantech, and property Office Fiduciary services for national and • international pension funds and insurance companies providing a fully comprehensive asset management solution based on clients’ specific needs Van Lanschot Investor Presentation - May 2015 7
Our core activities work together in many ways and draw on the group’s strong foundations Investment beliefs Private Asset allocation Banking Structured products Manager selection Order execution Discretionary management Product development Asset Merchant Management Banking Selective order execution Sector focus Strong balance sheet. Solid ratings. Article 403 statements. Own book. Revenue diversification. IT/OPS collaboration. Exchanging talent. Van Lanschot Investor Presentation - May 2015 8
The transformation takes several years; in the first period focus and simplification were the key themes 2013 2015 2017 • Creation of Corporate Banking to run-down First results corporate loan book • Strong capital base • Introduction of Evi van Lanschot, our online savings and investments solution • Comfortable liquidity position • Introduction service levels Private Banking • Rationalisation product offering: payments, • Solid net result savings • Organisational efficiency increased; FTE- • Dividend doubled reduction realised • Simplification governance model Van Lanschot Investor Presentation - May 2015 9
Growth of the core activities and run off Corporate Banking will be the themes for the coming period 2013 2015 2017 • Private Banking : growth in investment services and mortgages, supported by marketing campaigns and extension of online possibilities Core activities • Asset Management : further grow niche strategies towards capacity by expanding client base, mainly internationally and by wholesale distribution • Merchant Banking : continue focus on selected niches and exploit synergies between product groups; continue international expansion • Corporate Banking: continue winding-down of corporate loan portfolio Non core Van Lanschot Investor Presentation - May 2015 10
Van Lanschot is listed on the Amsterdam stock exchange and has a stable shareholder base Ordinary shares & depositary receipts Holders of depositary receipts • Van Lanschot’s issued share capital consists of ordinary shares A which are held by Stichting Administratiekantoor van gewone aandelen A Van Lanschot (the Stichting ) 20% Delta Lloyd 30% Rabobank • The Stichting has issued depositary receipts APG for these shares. The depositary receipts are 6% Wellington listed on Euronext Amsterdam LDDM Holding 10% • The graph shows the holdings of depositary Invesco receipts that have been included in the 12% Free float 10% Substantial Holdings register of the 12% Netherlands Authority for the Financial Markets (AFM) Van Lanschot Investor Presentation - May 2015 11
Van Lanschot’s solid profile is reflected in its creditworthiness Fitch Standard & Poor’s Long-term credit rating: BBB+ • • Long-term credit rating: A- Outlook long-term credit rating: Stable • Outlook long-term credit rating: Negative • Short-term credit rating: A-2 • Short-term credit rating: F2 • Latest press release: 04-11-2014 • Latest press release: 30-09-2014 • Outlook revised to Stable from Negative in November 2014 • Rating has been reconfirmed since 2009 • “Van Lanschot's good capitalisation is strongly supporting its “Van Lanschot has advanced well in refocusing on pure wealth rating... The rating incorporates the bank's established ... management business. We think this business model should franchise in wealth management and merchant banking and enable the bank to strengthen its core franchise..., as well as to expectation that its management will be able to execute on simplify its product offering while reducing its risk exposure its strategy ... The rating is further supported by the bank's and increasing its capitalization over time, in line with what good and balanced funding profile and sound liquidity we view as a relatively cautious strategy and management.” management .” (4 November 2014) (30 September 2014) Van Lanschot Investor Presentation - May 2015 12
2. Annual results 2014 Van Lanschot Investor Presentation - May 2015
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