Rothschild & Co: 2020 - Annual results presentation

Contents

Sections

1	Highlights	4
2	Business review: Global Advisory	8
3	Business review: Wealth & Asset Management	15
4	Business review: Merchant Banking	25
5	Corporate responsibility	31
6	Financials	34
7	Targets and outlook
42
Appendices	45

Highlights

Resilient results in the face of very challenging market conditions

Business performance

⚫

Global Advisory (GA): revenue similar to 2019 (-1%, flat in constant currency) despite the COVID-19 crisis. Decline in M&A mitigated by increased Financing Advisory activity. In 2020, ranked 8th by revenue, 1st by number in Europe and 2nd by number globally

⚫ Wealth & Asset Management (WAM): strong Net New Assets (NNA) in Wealth Management (€2.9bn, +16% vs 2019).

Resilient financial performance in Europe with revenues up 3% at €470m (2019: €458m) and PBT up 9% at €74m (2019: €68m). Conservative loan book, within no material issues. Difficult year for Asset Management in US

⚫

Merchant Banking (MB): Resilient performance of portfolio companies with no liquidity issues arising. Portfolio valuation increased during the year, albeit less than in 2019. As a result, overall revenue was down 25%, although strong increase of 24% in recurring revenue. Following recent fundraisings, AuM continue to grow (+12%)

Results

• ⚫ Group revenue: €1,799m, down 4% (2019: €1,872m)

• ⚫ Net income - Group share excluding exceptionals: €173 million, down 26% (2019: €233 million), mainly reflecting lower investment revenue in MB which has a direct impact on Group's net income

• ⚫ Earnings per share (EPS) excluding exceptionals: €2.37, down 27% (2019: €3.24)

• ⚫ 2020 dividend restricted to €0.70 per share (following the 2019 dividend of €0.85 being cancelled)

Dividend

⚫

As a consequence, we expect to make a special interim payment in Q4 2021 of €1.04 per share, subject to restrictions being lifted

Solvency ratios

⚫

Very well capitalised balance sheet with solvency ratio of 20.1%1 as at December 2020

Credit and liquidity

• ⚫ We do not undertake proprietary trading or capital market activities

• ⚫ Credit activity is limited: lending well secured and focused on our private clients

• ⚫ High liquidity ratios in our regulated banks with strong central liquidity as well

Note 1

The ratio submitted to ACPR as at 31 December 2020 was 19.5%, which excludes the profit of the second half of the year as non-audited at the time of the submission

4

Public