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Zurich, March 17, 2016 LGT Financial Results Media Conference 2016 Zurich, Hotel Park Hyatt

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Page 1: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

Zurich, March 17, 2016

LGT Financial Results Media Conference 2016 Zurich, Hotel Park Hyatt

Page 2: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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Review 2015

H.S.H. Prince Max von und zu Liechtenstein, CEO LGT

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Page 3: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

Review 2015

Excellent net asset inflows, strong income and profit growth, very sound balance sheet

Results

Net asset inflow: CHF 8.8 bn (6.8% of AuM)

Assets under management: CHF 132.2 bn (+2.7%)

Total operating income: CHF 1’149.3 m (+13.8%)

Group profit: CHF 211.0 m (+27.9%)

Cost/income ratio: 71.2% (2014: 75.4%)

Total assets: CHF 34.2 bn (-3.6%)

Tier 1 ratio: 20.1% (2014: 18.4%)

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Page 4: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

Review 2015

Highlights

Continued high growth and strong net asset inflows in all regions,

increase in assets under management

Significant rise in profit and income in an environment characterized by economic volatility and currency effects

Rising capacity utilization and improved cost-income ratio of the individual booking platforms

Growing demand for alternative investments both from institutionals as well as private investors

LGT Capital Partners with bigger market share and increased profitability

Fine tuning of the product offering and the organizational structure

Private Banking

Asset

Management

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Page 5: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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Results

Olivier de Perregaux, CFO LGT

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Page 6: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

IFRS, in CHF million (Final Audit 28.04.2016)

Results

LGT Group income statement 2015

2015

2014

Change

Net interest and similar income

Income from services

Income from trading activities and other operating income

115.3

783.7

250.4

92.5

701.8

215.5

24.7%

11.7%

16.2%

Total operating income 1‘149.3 1‘009.8 13.8%

Personnel expenses

Business and office expenses

631.9

186.9

595.5

165.5

6.1%

13.0%

Total operating expenses 818.8 761.0 7.6%

Depreciation, amortization and provisions

Tax and minority interests

110.7

8.8

56.2

27.6

97.1%

-68.1%

Group profit 211.0 165.0 27.9%

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Page 7: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

mvl | CEO 17.03.2016

Development of assets under management 2015

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Results

Assets under management (in CHF billion)

in CHF billion

7

+ 2.7 %

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128.8 132.2

8.8 5.3

31.12.2014 New asset inflow Market / FX 31.12.2015

Page 8: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

- 3.5

- 0.7

2.2 2.4

5.7

7.5

11.0

- 1.3

- 3.7

3.1

8.6

10.5

7.5 7.1

8.8

-4

-2

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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mvl | CEO 17.03.2016

Results

Development of net asset inflow since 2001

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(in CHF billion)

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Page 9: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

3.3

2.7

27.4

0.8

Passiven

2.0

0.4

2.9

5.3

11.8

11.8

Aktiven

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mvl | CEO 17.03.2016

Results

Balance sheet

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in CHF billion Total assets CHF 34.2 billion

Interbank

Loans

Securities*

LGT Princely Portfolio

Other assets

Interbank

Client deposits

Other liabilities

Equity capital

* 92.6% of money market instruments and bonds with a rating ≥ A

Intangible assets

Assets Liabilities

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Page 10: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

mvl | CEO 17.03.2016

Results

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Other key figures 2015

Balance sheet key figures 2015 2014 Change

Total assets (in CHF bn) 34.2 35.5 -3.6%

Equity capital (in CHF bn) 3.3 3.4 -1.2%

Tier 1 ratio (in %) 20.1% 18.4%

Liquidity Coverage Ratio 142.7% 130.0%

Headcount 2212 2081 6.3%

Cost/income ratio (in %) 71% 75%

Rating Moody's/Standard & Poor's for LGT Bank Ltd.

Aa2/A+ A1/A+

Page 11: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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Strategy and outlook

H.S.H. Prince Max von und zu Liechtenstein, CEO LGT

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Page 12: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

Asset Management

Strategy and outlook

Quantitative and qualitative growth

– Strong net asset inflows from institutional investors – particularly in the private equity and insurance linked securities business, but also for hedge funds and multi-asset solutions

– Increased revenues thanks to good performance and rise in assets under management

Trend toward alternative investments

Growing interest from private investors in alternative investment classes

Further expansion of LGT Capital Partners’ product offering in the core segment and innovative specialized segments

Strategic priorities

Globalization of the multi-alternatives platform

Further optimization of internal processes and procedures with regard to efficiency and investment performance

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Page 13: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

Private Banking

Strategy and outlook

Strong growth momentum

– Strong net asset inflows in all regions

– Sound profitability thanks to improved utilization of platform capacities and stable margins

– Significant contribution from the lending business, which has excellent portfolio quality

International diversification pays off

– Excellent geographic mix, with three core platforms in Liechtenstein, Switzerland and Asia, and rapid growth of entities in Austria and the Middle East

– Positive contribution to results from all platforms

Strategic priorities

– Further development of Investment Services, optimization of interface with Asset Management

– Strategic IT initiatives focused on digitalization (LGT SmartBanking)

– More targeted brand positioning and product offering

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Page 14: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO 17.03.2016

FL Private Banking FL Private Banking

International locations/Asset Management

LGT Princely Portfolio

Assets under management in 1999 and 2015 (in CHF billion)

International locations/ Asset Management

Strategy and outlook Successful growth strategy: Diversification of sources of assets under management and revenue streams

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40.8 39.1

3.8

90.2

2.9

44.6

132.2

31.12.1999 31.12.2015

x 23.7

x 1.0

Page 15: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

International expansion as a growth driver

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mvl | CEO 17.03.2016

Strategy and outlook

15 15

Employees in Liechtenstein

Employees in other countries

x 1.4

x 20.5

Page 16: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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mvl | CEO

Acquisition of majority stake in Vestra Wealth LLP

17.03.2016

Strategy and outlook

2.4 3.0

3.5 4.1

5.6

0

1

2

3

4

5

6

2011 2012 2013 2014 2015

Vestra assets under management (GBP bn) Vestra Wealth LLP

– London-based wealth management boutique, founded in 2008

– Investment management and wealth planning services primarily for UK HNWIs

– 234 staff

– High organic growth

Excellent strategic and cultural fit with LGT

– Acquisition gives LGT a significant presence in London for UK-domestic market and international clients

– Simple intergration process due to similar business models

– Mid- and long-term revenue synergies

Page 17: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

Outlook 2016/2017

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mvl | CEO

Strong capitalization, active balance sheet management

Geographic diversification of the corporate portfolio

Stable ownership and managment structure

Increased consolidation and M&A activities in the private banking and asset management areas

Selective use of acquisition opportunities

Changed and new client needs: digitalization Trend toward sustainable investments

IT-initiatives (LGT SmartBanking) Venture Philanthropy, Impact Investing

Expected framework conditions 2016/2017 LGT strategy

17.03.2016

Strategy and outlook

Fragile environment with high level of economic and political uncertainty

Difficult interest rate environment, volatile currencies

Clients are looking for security, stability, transparency and trust

Additional regulatory requirements in Private Banking and Asset Management business

Strategic, long-term oriented approach to dealing with regulatory requirements

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Page 18: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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Picture description "Equatorial Sundial", c. 1597/1600

ERASMUS HABERMEL 1540–1606

Erasmus Habermel was one of the 16th century's most renowned makers of sundials and technical equipment. In October 1594 he was appointed by Emperor Rudolf II to the position of astronomical and geometrical instrument maker in Prague. However, equipment made by him bear inscriptions which indicate that he must have been active in Prague prior to this in the years 1576 and 1580. The instrument is unusual for this epoch, as they were usually designed to be suspended, i.e. without a stand, although this had certain drawbacks in terms of legibility. Erasmus Habermel solved this problem by connecting the sundial's meridian ring to the stand and the compass. The stand is equipped with a compass, enabling the device to be aligned with the magnetic north pole. It also has a plumb line, for geocentric alignment. Once the instrument has been aligned with the points of the compass, its readings are unequivocal. The main parts of the instrument are the fixed vertical meridian ring, with the adjustable annular ring and the horizontal global equator ring. The annular ring is attached to the month slide. It was possible to perform numerous functions with this multifunctional scientific instrument.

© LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna

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Page 19: LGT Financial Results Media Conference 2016 Zurich, Hotel Park … · 2016. 3. 17. · very sound balance sheet ... Vestra Wealth LLP Vestra assets under management (GBP bn) –London-based

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Legal information This document is intended solely for the recipient and may not be duplicated, distributed or published either in electronic or any other form without the prior written consent of LGT Group Foundation. This publication is for your information only and is not intended as an offer, solicitation of an offer, public advertisement or recommendation to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any undertaking or guarantee as to it being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published, therefore, information shall not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Forecasts are not a reliable indicator of future value developments. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they initially invested. We disclaim without qualification all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. It is up to potential investors to obtain comprehensive information and appropriate advice in their home country, country of residence or country of domicile about the applicable legal requirements and any tax consequences, foreign currency restrictions or foreign exchange controls and any other aspects that are of relevance prior to any decision to subscribe to, purchase, own, exchange or redeem such investments, or enter into any other transaction in relation to same. The securities and rights mentioned in this document may not be purchased or held by investors or for investors domiciled in the USA and/or with US citizenship, nor may such securities and rights be transferred to them.

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