2. CONTENT
Group CSFB
- Update on accounting changes (slide 2 to 3) - Revenue detail 2002 (slide 15)
- Emerging markets exposure (slide 16 to 17)
- Selected exposure by industry (slide 18)
CSPB
- quot;Legacyquot; assets exposure (slide 19)
- Development of gross margin (slide 4)
- quot;Legacyquot; assets P&L charges (slide 20)
- AuM by product and currency (slide 5)
- Pershing sale (slide 21)
Winterthur
- Investment result (slide 6 to 8)
Cautionary statement regarding
- Investment portfolio (slide 9 to 10)
forward-looking information (slide 22)
- Equity base &
statutory solvency (slide 11)
- Life & Pensions business mix (slide 12)
- Insurance premium split and
combined ratios &
gross written premiums (slide 13 to 14)
Supplement Slide 1
3. UPDATE ON ACCOUNTING CHANGES (1/2)
Rationale: Increase peer comparability and eliminate difference to
US GAAP
S CHF 266 million at CSFS
Cumulative effect
for prior years:
S CHF 254 million at CSFB (USD 162 million)
Deferred
S Reported in separate P&L line item
tax assets
S Excluded from net operating profit
on net
operating
losses
Effect on taxes for S CHF 472 million at CSFS
financial year 2002:
S CHF 868 million at CSFB (USD 556 million)
S Reported in normal tax result
S Included in net operating profit
Supplement Slide 2
4. UPDATE ON ACCOUNTING CHANGES (2/2)
Rationale: S Consistent with anticipated EBK change in estimate
guidelines
S In line with peers general trend of deteriorating credit
environment
CSFS: S CHF 245 million
Inherent
S Current ACP model in banking already compliant with
loss
allowance EBK guidelines
in loan
S Charges recorded at Corporate Center
portfolio
CSFB: S CHF 530 million (USD 340 m)
S Included in BU/segment results
Neutral to net operating profit due to release of reserves for general
B
banking risks of CHF 580 m recorded as extraordinary income
Note: figures above exclude CHF 3 million from exchange rate impact
Supplement Slide 3
5. PRIVATE BANKING
DEVELOPMENT OF GROSS MARGIN
Asset-driven Transaction-driven Other revenue
-10 bp
145
in bp
10 134 133 133
131 127
123 123
118
3 4 114
6
120 6 6
48 43 6 34 5 alternative investments Ô
42 35
40 5
5 28 33
34 Ô
brokerage
26
90 Ô
trading
60
➬
alternative investments
87 88 83 90 87 87 86 83 85 Ô
85 commission on assets
Ô
30 interest margin
Ô
lending
0
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
2001 2002
Supplement Slide 4
7. WINTERTHUR GROUP
INVESTMENT RESULT (1) (1/3)
2002(1)
12M/02(1) Q3
Q1 Q2 Q4
Current income 5,096 1,236 1,435 1,203 1,222
Realized gains 5,421 1,346 1,389 2,353 333
Realized losses (4,738) (647) (2,129) (1,589) (373)
Impairments (3,887) (942) (857) (1,413) (675)
Other (464) (114) (100) (135) (115)
Investment Income (P&L) 1,428 879 (262) 419 392
(1) general account only
Note: Q1 to Q3 reclassified to the current presentation format, including real estate own use,
interest paid from current income and realized gains/losses to other
Supplement Slide 6
8. WINTERTHUR GROUP
INVESTMENT RESULT (1) (2/3)
S Development of gross unrealized losses in equity portfolio
Gross Unrealized Losses (1)
ƒ Given flat markets, unrealized
(in CHF bn, gross of tax/policyholder portion)
losses are recognized in the P&L
Q4/02
Q4/01 Q1/02 Q2/02 Q3/02
after 6 months as an impairment
52%
42%
49%
ƒ NOP impact highly country-specific
48%
66%
(0.5)
61% depending on whether the
58% investment risk is borne by the
51%
company or the policyholder
34%
(1.1) (1.0)
(1.2) ƒ Current unrealized losses in Q4/02
substantially lower than at year-end
39%
Company portion 2001 and also improved vs Q3/Q2
Policyholder portion
(2.2) ƒ Taking only the NOP relevant
portion into account, unrealized
Potential impact of gross unrealized losses on NOP:
(in CHF million) losses decreased 38% vs Q3/02
(1,350) (500) (750) (400) (250) level
(1) general account only; totals different from published figures in quarterly report due to consolidation effects
Supplement Slide 7
9. WINTERTHUR GROUP
INVESTMENT RESULT (1) (3/3)
Life & Winterthur
in CHF m(1) Pensions Insurance Group
Net investment income 2001 4,766 2,217 6,983
(insurance chart of account)
Net investment income 2002 1,438 (10) 1,428
(insurance chart of account)
Delta: Net investment income 2001/2002 (3,328) (2,227) (5,554)
(insurance chart of account)
Impact on operating income (1,800) (1,800) (3,600)
(bancassurance chart of account)
Impact on net operating profit (1,600) (1,700) (3,300)
(1) general account only
Supplement Slide 8
10. WINTERTHUR GROUP
INVESTMENT PORTFOLIO – ASSET ALLOCATION
S Responsive to equity market development
B reduction of equity securities from CHF 22.5 bn (18%) to 9.1 bn (7%) in 2002
B quot;investment viewquot; equity exposure stands at CHF 8.0 bn (6%) (1)
Winterthur Investment Portfolio (2)
(3)
Total (in CHF billion)
124.9 122.2 121.0 125.4 124.8
3 4 9 10
13
8 9 Short-term investments & others
9 8
8 8 8 8
8
% of total
8 Real estate (fair value)
7
18
25 12 8
Mortgages
Equity securities
67
63
62
61
56
Debt securities & loans
12/02
12/00 12/01 06/02 09/02
(1) investment view excludes CHF 1.1 bn of participations in bond funds and special funds classified as equities under accounting rules
(2) all investments incl. real estate at market value; excluding separate account (i.e. unit-linked) business
(3) reduced by CHF 4.5 bn vs reported figures due to trade accounting on purchased bonds and maturing money market transactions (settlement date)
Supplement Slide 9
11. WINTERTHUR GROUP
INVESTMENT PORTFOLIO – BY COUNTERPARTY RATING
Winterthur Life & Pensions 31.12.02 Winterthur Insurance 31.12.02
BBB BBB
1% 3%
A
AAA
20%
A
48% AAA
24% 34%
AA
AA
31%
39%
Supplement Slide 10
12. WINTERTHUR GROUP
EQUITY BASE STRENGTHENED IN 2002
S CSG capital injection of CHF 3.7 bn(1) eligible solvency capital to maintain and
strengthen capital
S Consolidated EU group solvency now at 167%
S Group has sufficient capital to sustain growth in the near future
Winterthur Shareholders' Equity (CHF m)
755 (520) (261)
(150)
2,600
(2,115)
5,587
5,278
12/02
Net unrealized FX changes;
12/01 Dividends Capital
Net loss Minorities
gains/(losses)(2)
paid other injection/
contribution
(1) CHF 2.6 bn equity capital contribution and CHF 1.1 bn hybrid debt (2) net of tax/shadow
Supplement Slide 11
13. LIFE & PENSIONS
GROSS PREMIUMS WRITTEN
% of total, YTD
17.4 19.0 17.4 19.0
CEE, Asia
6.7 7.9 20.1
18.4 Unit Linked
Germany, UK, 45.5 44.8
Italy, Other (1)
Traditional
81.6 79.9
47.8 47.3
Switzerland
2001 2002
2001 2002
17.4 19.0 17.4 19.0
Individual Single
51.0 53.6 52.9 59.0
Group
Annual
49.0 46.4 47.1 41.0
2001 2002 2001 2002
(1) comprises of Iberia, Benelux, cross-border Note: 2001 excluding France and Austria
Supplement Slide 12
14. WINTERTHUR INSURANCE
SPLIT BY LINE OF BUSINESS & COMBINED RATIOS
Combined Ratio
Gross Premiums 2002: CHF 18.4bn
Change vs 2001: (0.1%),
Claims Expense
+9.4% organic(1)
ratio ratio
105.6
Winterthur 2001 76.7 28.9
Insurance 2002 103.4
74.8 28.6
Accident & Health
CHF 3.3 bn 25.1 106.8
2001 81.8
Motor
18% 24.9 100.5
2002 75.6
Motor
CHF 7.7 bn
42% 107.4
2001 69.4 38.0
P&C
P&C (ex-Motor)
107.9
(ex-Motor) 2002 70.5 37.4
CHF 7.4 bn
40%
21.5 101.5
2001 80.0
Accident &
Health 21.1 102.2
2002 81.1
(1) in local currencies
Supplement Slide 13
15. WINTERTHUR INSURANCE
PREMIUM INCREASES OFFSET BY DISPOSALS
2002 GWP: 18.4 bn Gross Written Premiums by Region (CHF bn)
Market
2002 2001 Position(1)
Growth
Other,
disposals 5.0
United Kingdom 3.8 32% 5th
Switzerland
3% 16%
North America
18%
3.4
North America 3.2 6% >20
Belgium
Germany
2.9
4% Switzerland 2.7 7.4% 1st
14%
Italy
2.5
Germany 2.5 0% 14th
10%
UK
Iberia
27% 1.9
Italy 1.8 6% 8th
8%
2.7
Other, disposals 4.4 -39% n/a
18.4 7th (2)
Total 18.4 0%
(1) based on 2001 GWP
(2) total European
Supplement Slide 14
16. CREDIT SUISSE FIRST BOSTON
REVENUE DETAIL 2002
Investment Banking Division Equity Income Division
695 871 485 813 Total in USD m 855 760 718 562 Total* in USD m
7
8 7
9 Asian customers
14 16 Other
22 23 16
16 22
20 European customers
2
2
1 2
28 M&A LatAm customers
43 27
34
in %
in %
36 38
31
11 Equity capital markets 34 US customers
6 Debt capital markets
15
17
17
48
6
7
9 36
39 39 EDCU
Private equity 35
22
19
16
* incl. Other revenues
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 not shown in chart
Fixed Income Division CSFB Financial Services
1,269 1,263 1,103 587 Total in USD m 536 553 501 484 Total in USD m
2
5 2 Other
Rates
28
26 36 43 42
40 45
39 CSAM
12 Emerging markets
14
in %
in %
29 group
34
42
43 39 Pershing
71 40
63 Credit
39 45
16
16 14 PCS
13
Other
(5)
(9) (2)
(4) (18)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Supplement Slide 15
17. CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY REGION
Total
Americas CIS/ Mid. East/ Asia /
31.12.02
Global
Africa Pacific
Europe
in USD m
Loans 1,299 1,243 567 1,365 4,474
Loan equivalent exposure 586 304 309 476 1,675
Money market 0 0 0 0 0
F/X, precious metals 586 304 309 476 1,675
Derivatives 0 0 0 0 0
Trading positions 238 904 843 3,077 5,062
Fixed income 157 887 826 2,827 4,697
Equities 81 17 17 249 364
Reverse repos 462 120 47 76 705
Total, gross 2,585 2,571 1,766 4,993 11,916
Net notional FX position (108) (314) (737) (1,739) (2,897)
Provisions (197) (13) (18) (219) (447)
Net exposure 2,281 2,244 1,011 3,035 8,572
Supplement Slide 16
18. CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY SELECTED COUTRIES
Argentina Brazil Mexico Russia Indonesia
31.12.02
in USD m
221 258 394 500 415
Loans
56 96 311 44 49
Loan equivalent exposure
0 0 0 0 0
Money market
56 96 311 44 49
F/X, precious metals
0 0 0 0 0
Derivatives
48 78 2 281 329
Trading positions
48 0 0 270 328
Fixed income
0 78 2 11 2
Equities
11 327 36 67 0
Reverse repos
336 759 743 891 793
Total, gross
0 (409) 303 (166) 22
Net notional FX position
(164) 5 (17) 0 (169)
Provisions
173 345 1,029 726 646
Net exposure
Supplement Slide 17
19. CREDIT SUISSE FIRST BOSTON
COUNTERPARTY EXPOSURE BY INDUSTRY
Selected CSFB Exposures (as of December 31, 2002)
in USD m
Current Undrawn Total
Industry exposure commitm. exposure
Telecom service
providers 1,720 2,185 3,905
Telecom
manufacturing 179 230 409
Merchant energy 1,267 258 1,525
Airlines 583 425 1,008
Note:
Current exposure equals committed amount (includes only drawn commitments) for lending plus mark-to-market for counterparty trading less credit
protection
Total exposure equals quot;current exposurequot; plus undrawn commitments
Supplement Slide 18
20. CREDIT SUISSE FIRST BOSTON
quot;LEGACYquot; ASSETS EXPOSURE
quot;Legacyquot; Assets Net Exposure
in USD m
8,964 Real Estate
11,925
12/1999 1,975 Distressed
986 Private Equity (1,228 unfunded commitment)
4,805 Real Estate
8,026
12/2000 1,498 Distressed
1,724 Private Equity (984 unfunded commitment)
2,925 Real Estate
5,357
12/2001 1,107 Distressed
1,325 Private Equity (857 unfunded commitment)
1,535 Real Estate
3,031 512 Distressed
12/2002
984 Private Equity (785 unfunded commitment)
Note: unfunded commitments as of 12/01 and 12/02 include USD 0.4 bn employee commitments
Supplement Slide 19
21. CREDIT SUISSE FIRST BOSTON
quot;LEGACYquot; ASSETS P&L CHARGES
Charges related to quot;legacyquot; assets
in CSFB's income statement
Real Distressed Private
Total
in USD million Estate Portfolio Equity
2002
(919)
Operating Income (120) (523) (275)
(154)
Provisions (154) - -
301
Taxes 77 147 77
(773)
Net Operating Profit/(Loss) (197) (377) (199)
Q4/02
(281)
Operating Income (14) (144) (123)
8
Provisions 8 - -
76
Taxes 2 40 34
(196)
Net Operating Profit/(Loss) (4) (103) (89)
Supplement Slide 20
22. CREDIT SUISSE FIRST BOSTON
PERSHING SALE
S Focus resources on core businesses; avoid further capital investment
S Strengthen CSFB's and Group's capital base via elimination of
USD 500 m of goodwill, USD 900 m in acquired intangibles and a
Benefits of reduction of USD 1.6 bn in risk-weighted assets
Transaction
S Cash proceeds of USD 2.7 bn; including repayment of subordinated
debt; a pre-closing dividend of approximately USD 800 m is anticipated
S Financial Services strategy remains in place, albeit on smaller scale
Q4/02
S After tax loss of USD 250 m driven by low tax basis in Pershing;
USD 86 m pre-tax loss (excl. USD 50 m performance-related payment)
Effective 1/1/03
Accounting
S Pershing carried as equity investment
Impact
S Cease amortizing goodwill and acquired intangibles with net effect of
USD 144 m in 2002
S 2002 operating income and operating expenses were USD 854 m and
USD 661 m, respectively
Supplement Slide 21
23. CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
This presentation contains statements that constitute forward-looking statements. In addition, in the future we, and others on
our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without
limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect
on our future performance of certain contingencies; and assumptions underlying any such statements.
Words such as “believes,” “anticipates,” “expects,” quot;intends” and “plans” and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these
forward-looking statements except as may be required by applicable laws.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks
exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be
achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest
rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we
conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes
in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest
or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries
in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors
such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to
our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws,
regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our
operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands;
(xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and
acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii)
acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other
contingencies; and (xix) our success at managing the risks involved in the foregoing.
We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you
should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently
filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.
Supplement Slide 22
