David Mathers to present at the 2008 Lehman Brothers Global Financial Services Conference on September 9
1. Lehman Brothers Financial Services
Conference
New York
September 9, 2008
David Mathers, Head of Finance, Investment Banking
2. Cautionary statement
Cautionary statement regarding forward-looking and non-GAAP information
This presentation contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties, and we might not be
able to achieve the predictions, forecasts, projections and other outcomes we describe
or imply in forward-looking statements.
A number of important factors could cause results to differ materially from the plans,
objectives, expectations, estimates and intentions we express in these forward-looking
statements, including those we identify in quot;Risk Factorsquot; in our Annual Report on Form
20-F for the fiscal year ended December 31, 2007 filed with the US Securities and
Exchange Commission, and in other public filings and press releases.
We do not intend to update these forward-looking statements except as may be required
by applicable laws.
This presentation contains non-GAAP financial information. Information needed to
reconcile such non-GAAP financial information to the most directly comparable measures
under GAAP can be found in Credit Suisse Group's second quarter report 2008.
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4. Credit Suisse has significant earnings power
Benefit from a diversified and integrated global business
Private Banking continues to deliver good results
Solid results across most Investment Banking and Asset Management
businesses
Well-positioned to create long-term value and seize
opportunities that arise from market dislocation
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5. All divisions profitable
Private Banking Investment Banking Asset Management
Pre-tax income in CHF m
2Q07 1Q08 2Q08
2,502
1,381 1,324 1,220
299
281 167
(468)
(3,460)
! Good results evidencing the ! 2Q08 operating earnings ! Stable fee-based gross
1)
strength of business of CHF 650m margin
! Strong asset gathering and ! Most areas with good results ! Strong inflows in alternative
hiring trends across all investments
! Immaterial net valuation
regions ! Reduced 'liftout' assets
reductions of CHF 22m
! Continue to implement ! Significant progress in
international growth strategy reducing risk exposure
1) Excluding a fair value adjustment on own debt of CHF (503)m and a net litigation credit of CHF 134m
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6. Continued momentum in Wealth Management
Good net asset inflows Gross margin on AuM at high level
CHF bn basis points
Net asset inflows
of CHF 50.2bn with
6.4% net growth rate
118 117 117 116
113 112
15 30
15 Transaction-based
14
13
12
10
86
Recurring
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
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7. Fixed income trading with continued difficult market
conditions; Strong equity trading result
Fixed income trading net revenues Equity trading net revenues
CHF m
4,646
6,054
3,634
3,282
2,475
2,255
(22)%
1,379
320
+64%
(9)%
(1,256)
(1,576)
6M07 6M08 2Q07 1Q08 2Q08 6M07 6M08 2Q07 1Q08 2Q08
! Increased revenues in RMBS, Europe high ! Prime services generated near-record
grade and life finance revenues with growing client balances and
new mandates
! 2Q08 revenues benefit from substantial
! Near-record revenues in equity derivatives,
reductions in writedowns
driven by strength in all regions and products
! Reported revenues of CHF 320 m include
! Strong result in the global cash business,
writedowns of CHF 391m 1) and a fair value
reduction on own debt of CHF 453m driven by increased client flows and growth
in AES
1) Does not include offsetting gains of CHF 369m reported in debt underwriting and other revenues
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Slide 7
8. Underwriting fees still adversely affected by market
conditions
Advisory and other fees Underwriting fees
CHF m CHF m Debt underwriting
Equity underwriting
1,143 1,438
760 632
713
396 364
216
352 136
724
413
417 245
172
6M07 6M08 2Q07 1Q08 2Q08
6M07 6M08 2Q07 1Q08 2Q08
! Solid advisory results as increase in strategic ! Equity underwriting impacted by lower levels
M&A partly compensated for decline in of industry-wide equity issuance, particularly
sponsor activity in areas of historical strength for CS, and
! lower market share
Global M&A volume down from strong 2Q07
!
! Credit environment has continued to impact
#5 in announced M&A for 1H08 and #4 in
high-yield and leveraged lending issuance
the Americas
! High Grade performed well
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13. M&A less severely affected than underwriting
Leveraged finance origination volumes
Global ECM origination volumes
High-yield new issuance 2)
Dealogic / Equidesk
(USD bn)
(USD bn)
294
292 Leveraged loan volume 3)
187
265
191 120
168
149 124 78
75 85
81 49
46 38
25
10 4
33 6
47 75
30
2005 2006 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 2005 2006 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
to to
Quarterly avg
Quarterly avg 1)
dat e dat e 4)
Global CMBS origination volumes
Global announced M&A volumes
Commercial Mortgage Alert / Thomson
(USD bn) (USD bn)
Thomson / SDC
110
1,781
1,523 1,472
75 74
1,190
59
858 49
836
730 606
11
10
0.5
2005 2006 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 2005 2006 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
to to
Quarterly avg
Quarterly avg 1) 1)
d a te d a te
1) 3Q08 to date includes all of July and August
2) Source: Thomson / SDC
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3) Source: Standard & Poor's
Slide 13
4) Leveraged loan volume as of August 21, 2008, High-yield volume includes all of July and August
15. Credit Suisse’s competitive advantages 1/2
Examples / Actions / Track Record
Key competitive strengths of Credit Suisse
Client account management
Emphasis on client-led businesses
“Integrated Bank” collaboration
Strong track record: AES, Life Finance
History of innovation
Continue to reinvent our business
Strong presence across developed and
Geographically diverse
emerging markets
Continue build-out in key business areas,
Diversified product offering
such as Derivatives and Prime Services
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16. Credit Suisse competitive advantages 2/2
Examples / Actions / Track Record
Key competitive strengths of Credit Suisse
Continued focus on efficiency,
Ability to adapt to weaker macro
expense management
environment
Rebalance headcount between
businesses
Investment in people
Momentum toward market-leading status
Diversified funding base, price credit Stable funding base; conservative liquidity
correctly management
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17. Clients and collaboration Client-led
business
! Bank-wide Key Client Coverage program continues to mature on a
global basis and actively involves the most senior leaders of the Bank
Client
! Roughly 400 individual key client plans in place to increase wallet share,
Account
coordinate opportunities across the bank and increase senior
Management
management focus
! Joint venture with Private Bank organized to maximize cross divisional
leverage and delivery of the Integrated Bank
! Investment Bank is significant contributor to Integrated Bank revenues
Collaboration
–Approx. 48% of total 2007 Integrated Bank revenues of CHF 5.9
billion came from Investment Bank collaboration with other divisions
–Majority of collaboration revenue from equity cash, equity derivatives
and global rates/FX
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18. Product innovation Innovation
Life Finance Quarterly Revenue Growth
AES Quarterly Revenue Growth
47%
201%
2Q07 3Q07 4Q07 1Q08 2Q08 2Q07 3Q07 4Q07 1Q08 2Q08
! Revenues up over 50% vs. H107 ! Dominant market position in trading and
distributing both longevity and mortality
! Recently registered first 1 billion share risk
day in US AES (July 17)
! Trading in both physical (life settlements,
! CrossFinder: #2 dark pool in US premium finance) and synthetic (swaps,
(more than160 million average daily
structured notes) forms
shares crossed)
! Expanding internationally (Europe in
2008, Asia in 2009)
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19. Geographically
Continued geographic diversification diverse
Expansion of global footprint
Credit Suisse 2007 net revenues by region
in CHF bn and up/down in % vs. 2006
Kazakhstan
Russian Federation
+15% Ukraine
-19% Czech Republic
Wroclaw
Zurich
10.4 10.4 Toronto
London
Montreal
Paris
San Francisco Boston Milan
Chicago
Los Angeles
Tokyo
Madrid
New York
Irvine Beijing
Atlanta
Dallas Miami Hong Kong
4.0 Houston Nassau
Bangkok
Monterrey Cayman Islands
11.5 Pune Philippines
Mexico City U.A.E.
+23% Malaysia
Bogotá
Singapore
Nigeria Qatar
Kuala Lumpur
Jakarta
+16% Rio de Janeiro
Sydney
São Paulo Perth
Montevideo
Melbourne
South Africa
Buenos Aires
Switzerland APAC Santiago
EMEA
Americas * Key IB offices in bold
In 2007 and 1H08, we strengthened our presence in the following countries:
Australia China Kazakhstan Ukraine
Austria India Panama United States
Brazil Israel Turkey Pakistan
APAC = Asia / Pacific, EMEA = Europe, Middle East and Africa
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20. Diversified
Diversification into less correlated businesses product offering
Prime Services Quarterly Revenue Growth Equity Derivatives Quarterly Revenue Growth
7%
68%
2Q07 3Q07 4Q07 1Q08 2Q08 2Q07 3Q07 4Q07 1Q08 2Q08
! Near-record quarter with increased client ! Near-record revenue quarter for equity
balances and new client mandates derivatives
! CS viewed as a strong counterparty and a ! Record corporate and emerging markets
“safe haven” given strength and stability of activity
funding and liquidity
! Strong activity in US and EMEA flow
! Well-positioned for “flight to quality,” with derivatives
steady transfers of business from competitors
! Ongoing focus on infrastructure and efficiency
boosting balances by over 15% in 1H08
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21. Disciplined cost management in Investment Macro
environment
Banking
Other operating expenses (in CHF m) G&A per head1) (in CHF 000’s)
184
175
172
168
1)
2,286 2,178
2,044 153
149
1,300
1,145 1,232 1,097 1,0811) 145
(11)%
(13)%
947
6M07 6M08 2Q07 3Q07 4Q07 1Q08 2Q08
6M07 6M08 2Q07 3Q07 4Q07 1Q08 2Q08
! Other operating expenses1) decreased CHF 108m, or 5%, from 6M07, CHF 16m from
1Q08 and CHF 64m from 2Q07
! This reflects higher average headcount compared to 6M07, offset by cost reduction efforts,
a stronger Swiss franc and, in 2Q08, lower commission spend
1) Excluding net litigation credit of CHF 134m in 2Q08
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22. Proactive reorientation of resources to capture Investment in
people
growth
Headcount Change – 2Q 2007 to 2Q 2008
+100%
+50%
0%
-50%
Life Finance Commodities EQ Derivs. Prime Svcs. Lev Fin CMBS CDOs RMBS
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23. Diversified
Conservative funding structure
funding base
Asset and liabilities by category, end of 2Q08
CHF bn
1,230
1,230
! Strong deposit base
! Long-term debt available to fund short-term trading
book
! Benefited from 'flight to quality' during crisis,
adding medium-term funding
! Integrated bank enables efficient access to retail
funding and liquid markets globally
! All internal funding priced at market levels to ensure
correct disciplines
Capital and
Assets
liabilities
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24. Diversified
funding base
Well diversified unsecured funding mix
Unsecured funding by type / product
Total:
CHF 541bn ! Well diversified funding distribution by client
type and product
! Client deposits increased 15%, or CHF 37 bn,
Institutional
during 2007
deposits 3) Retail &
21% private banking ! Centralized funding function covering both
deposits 1)
CDs and long-term borrowing ensures
50% optimum efficiency in global market access
Long-term
debt 2)
29%
1) Time, demand and saving deposits
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2) Structured notes, long-term bonds and subordinated debt
Slide 24
3) Bank deposits, CDs, corporates
25. Recent market conditions validate Credit Suisse strategy
Benefits of integrated bank with a client focus
Innovative and diversified product offering
Geographic diversification
Expense discipline
Efficient headcount management
Importance of strong capital and liquidity position
Well-positioned to create long-term value and seize
opportunities that arise from market dislocation
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