UBS Global Financial Services Conference, New York
1. UBS Global Financial Services
Conference
New York
May 14, 2008
Paul Calello, CEO, Investment Bank
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 first quarter report 2008.
UBS Global Financial Services Conference
Slide 2
3. Earnings Power
Disciplined Approach to Risk Reduction
Strong Capital and Liquidity Position
Positioning for the Future
UBS Global Financial Services Conference
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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, masked by valuation reductions
Well positioned to create long-term value and seize
opportunities that arise from market dislocation
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5. A diversified earnings mix
Private Banking Investment Banking Asset Management
CHF m
2,502
1,439 1,990
1,381 1,377 1,324
1,289
1)
527
1)
191
299
257 1)
6 45 98
(247)
(468)
(849)
(3,460)
1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08
! Stable results in challenging ! Most businesses performing well; ! Stable recurring management fees
environment some at record levels ! Strong performance across most
! Good asset inflows and hiring ! Significant writedowns in leveraged businesses
momentum for Relationship finance and structured products ! Valuation adjustments on our money
Managers market assets
! Continued international expansion
1) Before losses from securities purchased from our money market funds
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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 Net asset inflows
of CHF 50.5 bn with of CHF 50.2 bn with
7.3% net growth rate 6.4% net growth rate
125
117 117
118
113 113 112
109
101
17 32
15
15
Transaction-based
14
13
12 85
11
10
9
Recurring
1Q08
1Q08 2006 2007
2006 2007
UBS Global Financial Services Conference
Slide 6
7. Greater focus on strengths in Asset Management;
continued inflows in alternative assets
AuM NNA NNA % of 2007
Business 1Q08 1Q08 2007 revenues1)
CHF
! Private equity
Alternative ! Real estate
160 bn 2.2 bn 25.3 bn 40%
investments ! Single and multi-
manager hedge funds
strategies (AI)
! Other strategies
Multi-asset ! Active asset allocation
strategies and solutions 165 bn 8.0 bn 24%
(1.3)bn
class solutions
(MACS) across all asset classes
! Equities
Global
275 bn (21.1)bn (29.7)bn 36%
investment ! Fixed income
strategies (GI) (incl. money markets)
Total Asset Management division 600 bn (20.2)bn 3.6 bn
1) Asset Management division, before private equity and other investment-related gains and securities purchased from our money market funds
UBS Global Financial Services Conference
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8. Fixed income revenues outside most affected areas
at same level as very strong 1Q07
Fixed income trading and debt underwriting revenues
CHF m
! Negative revenues in 1Q08
driven by valuation reductions in
structured products and
1,226 leveraged finance
4,325
1,659 1,647 ! Very strong results in global
rates and FX
! Strong results in emerging
markets and proprietary trading
! 1Q08 adjusted revenues include
(1,440)
fair value reductions of CHF 0.5
Add back
bn on corporate loan book
1Q08 Deduct 1Q08 1Q07
structured
revenues 1Q08 fair adjusted adjusted 2)
products and value revenues revenues
leveraged finance gains on
revenues 1) own debt
1) Total structured products and leveraged finance revenues excluding valuation adjustments of CHF 709 m reported in 'Other' revenues
2) Excluding revenues from structured products and leveraged finance businesses and converted into Swiss francs applying the 1Q08 average exchange rate to adjust for foreign exchange rate impact
UBS Global Financial Services Conference
Slide 8
9. Equity trading with solid performance in light of market
conditions
Equity trading net revenues
CHF m
! Stable client-related businesses
! Good results in the global cash business
driven by higher trading volumes,
increased client flows and strong AES
performance
2,475
2,171 2,068
! Prime Services achieved record revenues
1,379
in 1Q08 with strong growth in client
1,037
balances and new client mandates
! Losses in equity proprietary trading in
1Q07 2Q07 3Q07 4Q07 1Q08
1Q08 compared to a strong 1Q07
AES = Advanced Execution Services, our electronic trading platform
UBS Global Financial Services Conference
Slide 9
10. Underwriting and advisory business well positioned for a
rebound in corporate activity
Underwriting revenue Advisory and other fees
CHF m
Debt underwriting
Equity underwriting
713
726
340 670
632
510
86 440 396
136
413 393
327
311
172
1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08
! Lower private fund group revenue from seasonally
! Lower levels of industry-wide equity issuance and
strong 4Q
sharp decline in number of IPOs
! Global M&A volume down from record 2007
! ECM pipeline strong, up 30% over 1Q07
! #6 in announced M&A for 1Q08; mandates up
! Credit environment has continued to impact high-
21% over 1Q07
yield and leveraged lending issuance
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11. Disciplined approach to cost management in Investment
Bank
General & administrative expenses
CHF m
! Flexibility of cost base positions us well
in current markets and going forward
941
864
827
! Continued focus on reducing G&A
803 748
expense
(10)%
! Despite headcount growth, G&A
expense trend shows improvement
1Q07 2Q07 3Q07 4Q07 1Q08
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Slide 11
12. Growing collaboration revenues
2007 collaboration revenues Key collaboration initiatives
in CHF bn and growth % vs. 2006
! Asset referrals
CHF 3.1 bn 1 ! Structured Investment Products
+5% 2 ! UHNW client solutions
Private Asset
! Increase penetration of Managed
Banking Management
Investment Products
2 ! Product innovation
CHF 2.3 bn CHF 0.5 bn
! Private Equity/Hedge Fund distribution
+43% 1 +54% 3
! Alternative investments distribution
Investment
! Pension / Insurance solutions
3
Banking
! Fund linked products & Hedge Fund
referrals
Grow collaboration revenues from CHF 5.9 bn in 2007
to over CHF 10 bn in 2010 (+20% p.a.)
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13. Earnings Power
Disciplined Approach to Risk Reduction
Strong Capital and Liquidity Position
Positioning for the Future
UBS Global Financial Services Conference
Slide 13
14. Significant progress in reducing risk positions
Exposures and writedowns in CHF bn
Leveraged finance Commercial mortgages
Net writedowns: Net writedowns:
Origination- 59 2007 (0.8) 2007 (0.6)
-64% -46%
1Q08 (1.7) 1Q08 (0.8)
36
based
35 26
19
21
(exposures
Funded
shown gross)
Unfunded
3Q07 4Q07 1Q08 3Q07 4Q07 1Q08
Residential mortgages 1) CDO trading 2)
Net writedowns: Net writedowns:
Trading- 2007 (0.5) 2007 (1.3)
-66% -70%
16 1Q08 (0.1) 1Q08 (2.7)
2.3
based 3.9
1.6
9
(exposures 1.6
6 0.7
shown net) Subprime
1.1
Other
3Q07 4Q07 1Q08
3Q07 4Q07 1Q08
1) All non-agency business, including higher quality segments; global total 2) Year-end positions related to US subprime; total IB subprime is CHF 3.2 bn (across RMBS & CDOs)
UBS Global Financial Services Conference
Slide 14
15. Earnings Power
Disciplined Approach to Risk Reduction
Strong Capital and Liquidity Position
Positioning for the Future
UBS Global Financial Services Conference
Slide 15
16. Maintained strong capital position following transition to
Basel II
! Weakening of US dollar reduces both risk-
BIS Tier 1 ratio in % weighted assets and capital position
Risk-weighted assets in CHF bn
! Managed to grow capital without having to
13.9
dilute existing shareholders
13.0 12.0
11.1
11.3
− Issued CHF 1.5 bn of hybrid tier 1 capital
10.0 9.8
! Reduced share repurchase activity
324
312 301
299
296
! Strong capital base as competitive
254
233
advantage
(7)%
! Continue to prudently manage our balance
sheet, exposures and capital
2005 2006 2Q07 3Q07 4Q07 4Q07 1Q08
Basel I Basel II
UBS Global Financial Services Conference
Slide 16
17. Earnings Power
Disciplined Approach to Risk Reduction
Strong Capital and Liquidity Position
Positioning for the Future
UBS Global Financial Services Conference
Slide 17
18. Assessing the progress of our franchise momentum and
growth initiatives
Weaker Progress Stronger
Prime
Services
Equity
Derivatives Emerging
Markets
Commodities
AES
Platform
Corporate
Derivatives
Life Finance
Rates and FX
CMBS and Lev Fin
/ Asia
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Slide 18
19. Continued revenue diversification
Prime Services Quarterly Revenue Growth
! Record quarter with increased client balances and
new client mandates
125%
− Our chargeable balances are up 59% from the
beginning of 2007
! Credit Suisse viewed as a strong counterparty and
a “safe haven” in this market given strength and
stability of funding and liquidity
1Q07 2Q07 3Q07 4Q07 1Q08
Life Finance Quarterly Revenue Growth
! Dominant market position in trading and
distributing both longevity and mortality risk
! Trading in both physical (life settlements, premium
446% finance) and synthetic (swaps, structured notes)
forms
! Expanding internationally (Europe in 2008, Asia in
1Q07 2Q07 3Q07 4Q07 1Q08
2009)
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Slide 19
20. Continued geographic diversification
Expansion of global footprint
2007 net revenues by region
Kazakhstan
Russian Federation
Ukraine
Czech Republic
Americas Wroclaw
Switzerland
27% Zurich
30% Toronto
Montreal London
Paris
San Francisco Boston Milan
Chicago
Los Angeles Tokyo
APAC Madrid
New York
Irvine
EMEA Beijing
Atlanta
11% Dallas Hong Kong
Miami
32% Houston Nassau
Bangkok
Monterrey Cayman Islands Pune Philippines
Mexico City U.A.E. Malaysia
Bogotá Singapore
Nigeria Qatar
2007 pre-tax income by region Kuala Lumpur
Jakarta
Rio de Janeiro
Sydney
São Paulo
Perth
Montevideo
Americas Melbourne
South Africa
Buenos Aires
APAC Santiago
3%
15%
Switzerland
In 2007, we strengthened our presence in the following countries:
49%
EMEA
Australia China Kazakhstan Ukraine
33%
Austria India Panama United States
Brazil Israel Turkey
APAC = Asia / Pacific, EMEA = Europe, Middle East and Africa
Based on Core Results before Corporate Center
UBS Global Financial Services Conference
Slide 20
21. Current market conditions validate Credit Suisse strategy
Importance of geographic and product diversity
Value of franchise leadership
Utilization of economic risk capital model
Integrated Bank as differentiator
Importance of strong capital and liquidity position
Well positioned to create long-term value and seize
opportunities that arise from market dislocation
UBS Global Financial Services Conference
Slide 21
