2. PRESENTATION
§ Q1 2001 RESULTS SUMMARY
§ PERFORMANCE VS TARGETS
§ CONSOLIDATED RESULTS Q1 2001
§ ASSET QUALITY & CAPITAL ADEQUACY
§ BUSINESS UNIT RESULTS
§ PRIORITIES / OUTLOOK
§ SUPPLEMENTS
Slide 2
3. OVERVIEW Q1 2001 RESULTS (1/2)
Q1/01 Q4/00 Q1/00 Change to
Q1/00 Q4/00
Net operating profit, CHF m * 1,726 1,880 1,961 -12% -8%
Reported net profit, CHF m ** 1,428 1,664 1,915 -25% -14%
AuM, CHF bn *** 1,366 1,360 1,194 +14% 0%
Operating ROE * 16.7% 19.0% 25.5%
Operating earnings per share, CHF * 5.74 6.47 7.19 -20% -11%
Book value per share, CHF *** 138.25 136.30 116.79 +18% +1%
* excl. amortisation of acquired intangible assets and goodwill, as well as for Q4/00 excl. restructuring provision
** after amortisation of acquired intangible assets and goodwill, excl. restructuring provision in Q4/00
*** 31.03.01, 31.12.00 and 31.03.00 resp.
Slide 3
4. OVERVIEW Q1 2001 RESULTS (2/2)
§ CSFS: Operating ROE / ROIC 16.6%, CHF 4.6 bn net new assets
s WIN: CHF 133 m net operating profit (+6% vs. Q1/00),
premiums +7% organic
s WLP: CHF 199 m net operating profit (+23% vs. Q1/00),
premiums +13% organic
s CSB: CHF 187 m net operating profit matching strong Q1/00
§ CSPB: CHF 8.4 bn net new assets, 57 bp operating return on AuM
§ CSAM: CHF 6.8 bn net new discretionary assets, partially offsetting
downward trend in global markets
§ CSFB: Operating ROE of 18.7% (excl. amortisation of retention
payments) helped by best quarter ever in Fixed Income
Slide 4
5. GROWTH IN ASSETS UNDER MANAGEMENT
in CHF billion 0.1
6.8
8.4
1,365.7
4.1
4.6 - 17.8
CSFB
1,359.5 CSAM
CSPB market acquisitions
CSFS
movements
& structural
ed)
nualis
an effects
+5.9%
.9 (
HF 19 sets
C ew as
net n
AuM 12/00 AuM 03/01
New definition of AuM:
Assets placed with CSG entities for investment purposes or which underlie
insurance contracts (see supplemental slides)
Slide 5
7. REVENUE
§ Top line growth reflecting market conditions and DLJ acquisition
§ Continued stable revenue composition, fee income 44% of total
Change vs.
11,091
in CHF m Q1 2000
10,631 Balance sheet + 26%
14%
9,177 8,747 8,676 business
19%
13% 12% 13%
44% Fees & + 25%
commissions
43% 41% 49%
47%
28% Trading + 14%
31%
29% 13%
23%
19% Insurance + 12%
17% 14%
16%
15%
Total revenue + 21%
Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Slide 7
8. OPERATING EXPENSES
§ Expense base up on DLJ acquisition
§ Cost / income ratio of 76.3% (Q1/00: 67.3%), reflecting market conditions and
amortisation of retention payments
Change vs.
8,467
in CHF m Q1 2000
7,868
Personnel + 33%
6,030
6,301
6,178 6,154 expenses
5,154
(amortisation of retention pmts.)
(194)
(181)
2,310 2,298 2,575
(of which bonuses) + 25%
(2,780)
(2,017)
(2,092) (1,856)
(2,218)
2,308 Other op. exp. + 40%
1,954
1,549
1,392
1,396
Depreciation * + 90%
483
406
372 321
254
Total op. expenses + 37%
Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
* excl. amortisation of acquired intangible assets and goodwill
Slide 8
9. COST / INCOME MIX
Asset gathering cost / income ratio *, in %
64.7
62.7 61.6
60.7 59.0
57.3
56.1
1998 1999 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
Financial intermediation (CSFB) cost / income ratio *, in %
85.6
81.2 79.8
76.3 76.3 74.7 74.4
1998 ** 1999 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01
* excl. acquisition impact
** 1998 ex Russia
Slide 9
10. CONSOLIDATED OPERATING INCOME STATEMENT
Q1/01 Q4/00 Q1/00 Change
CHF m CHF m CHF m to Q1/00
Operating income 11,091 10,631 9,177 21%
Operating expenses 7,984 7,462 5,924 35%
Gross operating profit 3,107 3,169 3,253 -4%
Depreciation *, write-offs 483 407 254 90%
Valuation adj., provisions & losses 238 425 303 -21%
Operating profit pre e.o. & tax 2,386 2,337 2,696 -11%
e.o. items, net 22 -58 -37 -
Taxes 635 330 658 -3%
Net operating profit bef. minorities 1,773 1,949 2,001 -11%
Net operating profit 1,726 1,880 1,961 -12%
* excl. amortisation of acquired intangible assets and goodwill
Slide 10
11. REPORTED CONSOLIDATED INCOME STATEMENT
Q1/01 Q4/00 Q1/00 Change
CHF m CHF m CHF m to Q1/00
Net operating profit 1,726 1,880 1,961 -12%
Amort. of acquired intangible assets 191 157 - -
tax effect -63 -44 - -
Amortisation of goodwill 170 103 46 270%
Net profit before restructuring charge 1,428 1,664 1,915 -25%
Restructuring charge - 1,499 - -
tax effect - -425 - -
Reported net profit 1,428 590 1,915 -25%
Slide 11
12. ASSET QUALITY
CAPITAL EXPOSURE & PROVISION DEVELOPMENT
Non-performing loans (NPLs) *, in CHF m
1,904
CSFB
1,887
1,278
1,012
1,000 1,479 1,804
12,105
10,964 10,265
CSB & 9,493 8,854 8,347 7,926
CSPB
YE 1998 YE 1999 03/00 06/00 09/00 YE 2000 03/01
NPLs as %age
of credit exposure * 4.1% 3.4% 3.0% 2.8% 2.6% 2.4% 2.3%
Coverage ratio
of NPLs 63% 63% 61% 61% 62% 63% 62%
* includes loans and loan equivalents
Slide 12
13. CAPITAL ADEQUACY - CREDIT SUISSE GROUP
31.03.01 31.12.00 31.12.99
BIS tier 1 ratio % 10.3 11.3 11.8
BIS tier 1 ratio, banking % 8.9 9.1 9.1
BIS tier 1 capital CHF m 25,699 27,111 24,833
BIS risk-weighted assets CHF m 250,392 239,465 209,870
Slide 13
14. CREDIT SUISSE FINANCIAL SERVICES
HIGHLIGHTS Q1 2001
§ CSFS reporting format as of 1 January 2001:
s Winterthur Insurance (WIN)
s Winterthur Life & Pensions (WLP)
s Credit Suisse Banking (CSB)
s Credit Suisse Personal Finance (CSPF)
§ Overall results for CSFS:
s Net operating profit of CHF 428 m, down 5% on Q1/00
(up 9% excluding investment/expansion-related loss at CSPF)
s 16.6% operating ROE / ROIC
s AuM at CHF 276 bn (+1% vs. 12/00), CHF 4.6 bn net new assets
Slide 14
15. WINTERTHUR INSURANCE
HIGHLIGHTS Q1 2001
§ Premiums earned up 17% vs. Q1/00, 7% organic growth
§ Combined ratio improved to 106.4% (108.8% in Q1/00)
s Claims ratio slightly down at 77.4% (77.8% in Q1/00), includes
seasonal Q1 weather-related losses
s Expense ratio down 2 points at 29.0% due to expense control and
premium growth
§ Lower investment return of 6.3% (6.7% in Q1/00) reflecting financial
market conditions; 1.7% realised gains (2.3% in Q1/00)
§ CHF 133 m net operating profit, up 6% over Q1/00, down vs. Q4/00
on seasonal factors
Slide 15
16. KEY FIGURES
WINTERTHUR INSURANCE
Net premiums earned (CHF bn) Claims ratio (%)
3.6
3.5
3.1 77.8
77.4
77.2
Q1/00 Q4/00 Q1/01 Q1/00 Q4/00 Q1/01
Expense ratio (%) Combined ratio (%)
excl. dividends to policy holders
31.0
108.8
29.3 29.0 106.5 106.4
Q1/00 Q4/00 Q1/01 Q1/00 Q4/00 Q1/01
Slide 16
17. WINTERTHUR LIFE & PENSIONS
HIGHLIGHTS Q1 2001
§ Premiums up 19% vs. Q1/00, 13 % organic growth
s Strong contribution from group life in Switzerland and Spain
s Unit-linked products up 30% on Q1/00 (5% excl. acquisitions)
§ Expense ratio down to 6.1% (Q1/00: 7.7%) partly on premium growth
§ Seasonal factors will result in slower growth for the balance of the year
§ Investment return reduced to 6.2% (8.1% in Q1/00) reflecting stock market
environment; 1.8% realised gains (3.7% in Q1/00)
§ CHF 199 m net operating profit, up 23% over Q1/00
§ Strategic priorities
s Further pursue M&A activity to grow and reinforce position in L&P
s Continued focus on unit-linked products
s Accelerate introduction of Europe Life IT platform across Europe
Slide 17
18. KEY FIGURES
WINTERTHUR LIFE & PENSIONS
Gross premiums (CHF bn) Expense ratio (%)
11.3
6.2
5.2
7.7
4.2 6.1
Q1/00 Q4/00 Q1/01 Q1/00 Q4/00 Q1/01
Net new assets (CHF bn) Return on average tech. provisions (bp)
not annualised (full-year target 60-65 bp)
2.1
21
20 19
1.4
0.8
Q1/00 Q4/00 Q1/01 Q1/00 Q4/00 Q1/01
Slide 18
19. TRANSFORMATION OF INSURANCE OPERATIONS
1997 - 2000: HIGHLIGHTS
From To
§ Management spread across all § Reinforced management teams fully
insurance lines (Life, Health, Retail dedicated to both WLP and WIN on
P&C, Corporate) in integrated country a global basis
operations
§ Traditional insurance company
§ Complete separation of product
organisation
development & management from
distribution
§ Dependence on traditional tied agent
§ Strong growth of new channel (bank,
distribution
financial advisor, direct) and broker
distribution representing:
- 45% of 2000 premiums in Life
- 61% of 2000 premiums in Non-Life
§ Dependence on traditional Swiss
business particularly for Life premiums § Expansion of unit-linked to 20% and
non-Swiss business to >50% of total
§ Lack of common financial standards life sales.
and transparency across geographies
§ Implementation of US-GAAP-based
global financial management
Slide 19
20. DIVESTITURES OF HIGH-RISK BUSINESS,
DISCIPLINED ACQUISITIONS
in CHF m Gross premiums written Transaction price
divestitures acquisitions divestitures acquisitions
HIH 1,325 400
Non-Life
1,260 1,125
Win Re
Life
1,224 1,000
Win Int. *
580
DBV-Win ** 800
570
1,254
NIG 325
645
Colonial UK 800
260
Nicos Life 450
117
Taikang Life 140
75 120
VOPF
NET TOTAL 1,975 1,910 2,525 2,422
* Net premiums written, reflecting high reinsurance cessions
** increase of shareholding to 68% from 45%
Slide 20
21. SHIFTING INSURANCE PORTFOLIO MIX
1997 business mix 2000 business mix **
CHF 26.8 bn gross premiums written CHF 29.6 bn gross premiums written
Life
Life 52%
Non-Life
42%
Retail &
SME
44%
Non-Life
Retail &
SME
Commercial &
48%
Reinsurance *
14%
* HIH, Winterthur Re, Winterthur International ** adjusted for Winterthur International
Slide 21
23. INSURANCE BUSINESS
STRONG EARNINGS GROWTH
Profit before tax and minorities
in CHF m
785
1,161
904
385
1997 2000 1997 2000
Life, CAGR = 27% Non-Life, CAGR = 9%
Slide 23
24. CREDIT SUISSE BANKING
HIGHLIGHTS Q1 2001
§ CHF 187 m net operating profit matching strong Q1/00, up 40% on Q4
§ Operating ROE of 16.9%, up slightly on Q1/00
§ Commission income down due to lower transaction volumes vs. exceptional
Q1/00
§ Net interest income up, net interest margin of 242 bp (237 bp in Q1/00)
§ Stable credit quality, actual valuation adjustments CHF 33 m below statistically
expected figure
§ Online Products
s Online securities transactions down from last year's high volumes
s 288,590 online customers, up 10% on 12/00
Slide 24
25. CREDIT SUISSE PERSONAL FINANCE
HIGHLIGHTS Q1 2001
§ CSPF reporting format as of 1 January 2001 includes European onshore affluent
offering as well as youtrade
§ Continued growth in established areas
s Credit Suisse (Italy) close to 20,000 clients, nearly CHF 5 bn AuM
s More than 27,000 youtrade customers
s Overall net new assets of CHF 450 m, offsetting negative performance in
weak financial markets
§ CHF 91 m net operating loss reflecting continued investment mode
§ Acquisition of General de Valores y Cambios secures good starting position in
Spain
§ Launch in Spain and Germany planned for second half
Slide 25
26. CREDIT SUISSE PRIVATE BANKING
HIGHLIGHTS Q1 2001
§ CHF 8.4 bn inflow of net new assets, or 1.8% for the quarter
§ Net operating profit of CHF 645 m, 13% below record Q1/00, but up 6% on
Q4
§ Net margin 57 bp, gross margin 137 bp, based on new AuM definition
§ Lower transaction volumes vs. Q1/00 offset in part by commission income from
new issues of own structured products and alternative investments (ALPS, PIN,
quot;Absolutequot; funds)
§ Further expansion of international business (acquisition of JO Hambro) and
continued investments in new technologies leading to cost increases of 8% over
Q1/00
§ Expanded online services (e.g. customised financial website MyCSPB)
Slide 26
28. CREDIT SUISSE ASSET MANAGEMENT
HIGHLIGHTS Q1 2001
§ CHF 6.8 bn net new discretionary assets, largely offsetting declines due
to market movements
s Strong inflows in European retail
s Equity assets most impacted by negative market movements, now
at 31% of discretionary AuM
§ Revenue up on DLJ acquisition impact, integration completed, expense
savings achieved
§ Net operating profit of CHF 68 bn (down 8% on Q1/00); 5.6 bp return
on AuM (6.7 bp in Q1/00)
§ First mover in Switzerland in fast growing product area of exchange-
traded funds
Slide 28
29. CREDIT SUISSE FIRST BOSTON
HIGHLIGHTS Q1 2001
§ Turnaround in Fixed Income, best quarter on record
s High yield and securitisation benefiting from DLJ merger
s Lower interest rates and securitisation led to strong gains in rates and
credit product groups
§ Good results in Equities in light of difficult markets
s Revenue 21% below record Q1/00, up 31% on Q4/00
s Primary business adversely affected by drop in new issues, secondary
trading and derivatives doing well
§ IBD revenue down 45% on Q4/00 due to significant drop in volumes for equity
capital markets and M&A
§ Financial Services division adversely affected by difficult equity markets
§ DLJ integration completed, cost synergies likely to exceed original goals
§ Global league table ranking sustained in top 3 or 4 category
Slide 29
30. KEY MARKET SHARE FIGURES
CREDIT SUISSE FIRST BOSTON
April 2001 2000 * 1997
Rank Share Gap to 3 Rank Share Gap to 3 Rank Share Gap to 3
Global M&A 5 16.1% 3.5% 3 27.0% none 5 12.3% 6.2%
Global Equity 5 8.7% 3.2% 4 11.2% 2.2% 5 4.9% 7.3%
Global Debt 3 8.6% none 4 9.1% 0.5% 7 5.4% 3.2%
High Yield 2 17.2% none 1 21.0% none 10 4.0% 7.3%
Equity research
North America 1 56 RA none 1 56 RA none 10 13 RA 26 RA
Europe 1 41 RA none 4 26 RA 10 RA 12 8 RA 26 RA
RA = ranked analysts
* 2000 rankings include DLJ for full year
Slide 30
31. DLJ INTEGRATION
HEADCOUNT REDUCTION - PROGRESS UPDATE
CSFB PRO FORMA MAR CHANGE '01 VS.
SEP 2000 SEP 2000 2001 PRO FORMA
FID * 1,819 2,658 2,686 1%
IBD * 2,581 4,451 4,002 -10%
Equity * 2,593 3,720 3,272 -12%
Private Equity 73 350 360 3%
Other / CSFBNext 132 219 182 -17%
TOTAL FRONT 7,197 11,399 10,502 -8%
TOTAL BACK 9,301 11,625 10,712 -8%
Financial Services – 7,511 7,150 -5%
CSFB TOTAL 16,498 30,535 28,364 -7%
* Equity Capital Markets headcount is shared equally between Equity and IBD. Debt Capital Markets headcount is split
equally between FID and IBD. Equity Research headcount is held entirely within Equity.
Slide 31
32. PERFORMANCE VERSUS TARGETS
Q1 2001
1999 2000 Target
annualised
CSFS Net new asset growth 4.7% 2.9% 6.7% 6%
Operating ROE / ROIC * 14.9% 19.2% 16.6% 20%
WIN Combined ratio 105.2% 106.5% 106.4% 103%
WLP Return on tech. provision * 65 bp 68 bp 76 bp 60-65 bp
CSB Cost / income * 66.3% 64.6% 65.9% 60%
CSPB Net new asset growth 3% 4.4% 7.4% 5%
Net margin on AuM * 45 bp 54 bp 57 bp 50-55 bp
CSAM Discr. net new asset growth 9% 7.5% 7.6% 10%
Net margin on AuM * 7.2 bp 7.5 bp 5.6 bp 8 bp
CSFB Market share growth +/- + market share
ü ü
Operating ROE * 19.6% 21.8% 15.7% 15-20%
across cycle
CSG Net new asset growth 4.5% 4.5% 5.9% >6%
Operating ROE * 18.5% 21.5% 16.7% 18-22%
* excl. amortisation of acquired intangible assets and goodwill
Slide 32
33. PRIORITIES / OUTLOOK 2001
§ Build on strategic progress made in difficult first quarter
s DLJ integration targets on track / to be exceeded
s Build asset gathering / asset management businesses
s Continue efforts to leverage the insurance business
§ Second quarter still impacted by difficult market environment
§ 2001 likely to continue to be a challenging year
§ Favourable long-term trends for financial services industry remain intact
Slide 33
