Annual Reports 2011 V ontob el Group - Vontobel Holding AG

Vontobel Group
Annual Reports 2011
Consolidated Accounts
Vontobel Holding AG

Annual Reports 2011
Key figures 2
Shareholders’ letter 4
Vontobel Group 7
Sustainability 10
Review of business activities 26
Information relating to Corporate Governance 43
Consolidated financial statements 69
Vontobel Holding AG 175
Information for shareholders 188
Where to find us 189
Vontobel Group, Annual Reports 2011 1

Ratios 31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
Return on shareholders' equity (ROE) (%) 1 7.5 9.8 9.7 8.1 19.2
Cost2 /income ratio (%) 80.0 78.3 79.1 80.6 67.0
Equity ratio (%) 8.0 8.2 8.4 8.8 8.0
1 Group net profit as a percentage of average equity based on monthly figures, both without minority interests
2 Operating expense, excl. value adjustments, provisions and losses
Share data 31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
Basic earnings per share (CHF) 1 1.78 2.31 2.17 1.78 4.14
Diluted earnings per share (CHF) 1 1.76 2.26 2.12 1.74 4.06
Equity per share outstanding at balance sheet date (CHF) 23.61 23.67 23.31 21.73 22.50
Dividend per share (CHF) 1.10 2 1.40 1.40 1.20 2.00
Price/book value per share 0.9 1.5 1.3 1.0 2.4
Price/earnings per share 11.8 15.4 13.6 12.4 13.2
Share price at balance sheet date (CHF) 21.00 35.60 29.55 22.00 54.75
High (CHF) 39.90 36.50 38.00 54.90 77.30
Low (CHF) 19.90 26.75 15.30 19.40 49.35
Market capitalization (CHF mns) 1,331.3 2,262.0 1,881.0 1,387.0 3,457.3
Undiluted weighted average number of shares 63,800,363 63,918,532 63,973,581 63,481,890 63,637,178
1 Basis: weighted average number of shares
2 As per proposal submitted to the General Meeting; CHF 0.73 will take the form of a withholding tax-free repayment of share premiums and CHF 0.37 will
comprise an ordinary dividend.
Performance of Vontobel Holding AG registered share (indexed)
120
110
100
90
80
70
60
50
01-01-2011 30-06-2011 31-12-2011
Vontobel Holding AG registered share (TR) Swiss Performance Index (SPI)
2 Vontobel Group, Annual Reports 2011
Source: Bloomberg
Share information
Par value CHF 1.00
Stock exchange listing SIX Swiss Exchange
ISIN CH001 233 554 0
Security number 1 233 554
Bloomberg VONN SW
Reuters VONTZn.S
Telekurs VONN
BIS capital ratios 31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
Tier 1 capital ratio (%) 23.3 21.8 20.9 18.4 21.4
Total risk weighted positions (CHF mns) 4,969.3 5,689.8 5,894.9 5,292.0 6,281.1
Risk ratio 1 31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
Average Value at Risk market risk (CHF mns) 23.1 19.7 4.4 6.6 8.4
1 Average Value at Risk 12 months for positions in the Financial Products division of the Investment Banking business unit. Historical simulation Value at Risk;
99% confidence level; 1-day holding period; 4-year historical observation period. The system was altered at the start of the year 2010 as part of the further
development of risk modelling. Based on these enhancements, issuer-specific credit spread risks are now included in the calculation. As a result, risk
measurements have increased although the positions remain the same. The figures for the prior years have not been adjusted.
Ratings 31-12-11 31-12-10 31-12-09
Moody's Rating Bank Vontobel AG A1 A1 A1
Standard & Poor's Rating Bank Vontobel AG A+ A+ A+

Income statement
Key figures
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF mns CHF mns CHF mns CHF mns CHF mns
Total operating income 765.7 830.2 785.0 756.0 991.0
Operating expense 618.8 657.1 633.1 618.7 667.6
Group net profit 113.8 147.3 138.3 113.0 268.3
of which allocated to minority interests 0.1 (0.5) (0.6) 0.2 4.6
of which allocated to the shareholders of Vontobel Holding AG 113.7 147.8 138.9 112.8 263.7
Segments (pre-tax profit)
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF mns CHF mns CHF mns CHF mns CHF mns
Private Banking 33.0 48.5 21.2 51.0 83.1
Investment Banking 95.1 115.5 147.1 77.5 181.4
Asset Management 36.7 50.6 31.5 76.3 86.3
Corporate Center (17.9) (41.5) (47.9) (67.5) (27.4)
Balance sheet
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF mns CHF mns CHF mns CHF mns CHF mns
Total assets 18,691.8 18,301.6 18,081.4 15,531.8 17,992.1
Shareholders' equity (excl. minority interests) 1,496.6 1,503.9 1,483.6 1,369.9 1,421.1
Due from customers 1,370.4 1,427.0 1,005.4 666.0 813.1
Due to customers 7,538.7 4,925.7 4,594.4 3,594.2 2,061.2
Client assets 1
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF bns CHF bns CHF bns CHF bns CHF bns
Assets under management 82.2 78.6 75.2 62.4 79.5 2
of which under discretionary management 50.1 45.9 42.8 37.3 49.7
of which under non-discretionary management 32.1 32.7 32.4 25.1 29.82 Custody assets 41.7 40.4 39.2 36.1 46.22 Structured products outstanding 7.7 9.3 9.3 8.5 11.1
Total client assets 131.6 128.3 123.7 107.0 136.8
1 Client assets comprise assets under management, custody assets and investment products offered by Financial Products. Assets under management are
calculated in accordance with Table Q of the guidelines issued by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions and Vontobel Group internal guidelines. Table Q is shown in Note 37 'Client assets'.
2 Adjusted for reclassifications
Net new money
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF bns CHF bns CHF bns CHF bns CHF bns
Net new money 8.2 5.5 2.1 3.9 5.8
Headcount (full-time equivalents) 31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
Number of employees Switzerland 1,137.6 1,097.6 1,119.1 1,093.4 1,049.7
Number of employees abroad 275.8 248.5 242.0 226.3 204.4
Total number of employees 1,413.4 1,346.1 1,361.1 1,319.7 1,254.1
Vontobel Group, Annual Reports 2011 3

Shareholders’ letter
4 Vontobel Group, Annual Reports 2011
Dear shareholders and clients
While conditions in the first half of 2011 were shaped by the continuing recovery in
the financial markets, the summer brought an escalation of the European debt crisis
that dominated developments in the second half of the year. This was accompanied by
an unprecedented strengthening of the Swiss franc, which was only halted by the bold
intervention of the Swiss National Bank (SNB) in September 2011. Against this
backdrop, equity markets around the globe weakened – with the exception of the US
market. At the same time, interest rates for countries with first-class credit ratings fell
to record lows, while states with massive deficits had to pay much higher interest rates
to raise capital. In addition, natural disasters such as those in Japan and Thailand sent
further shockwaves through the markets. The financial year 2011 thus represented a
continuation of the volatile conditions seen in previous years.
Subdued profitability
The Vontobel Group delivered a subdued performance in this challenging environment.
Income levels were 8% lower than in the previous year and the cost reduction
measures implemented in 2011 were unable to fully offset this decline. This resulted in
a 23% decrease in net profit to CHF 113.8 mn and a return on equity of 7.5%, compared
to 9.8% in 2010. Both of these key figures clearly fall short of our mid-term
targets.
Record net inflow of new money
A highlight in 2011 was the record net inflow of new money generated by Vontobel:
we attracted CHF 8.2 bn of new assets, which corresponds to an impressive growth
rate of 10.4%. This very pleasing result underscores the attractiveness of our company
and the high level of trust that clients place in us – particularly in the current period.
It is also an expression of the Vontobel Group’s high-quality product offering and

advisory expertise. This net inflow of new money has enabled us to further strengthen
our presence in our focus markets of the US and the emerging markets – especially in
the Middle East and Asia, as well as in Eastern Europe. Our volume of client assets
originating from emerging markets now totals CHF 9.5 bn.
Conservative risk profile – strong balance sheet
A conservative risk profile is of critical importance in difficult times. We have used our
expertise to prudently manage the risk positions on our balance sheet – as reflected by
our continued strong BIS tier 1 capital ratio of 23.3%. In addition, we have promptly
addressed the growing regulatory requirements relating to the cross-border business
and are focusing intensively on adapting our business to the new regulatory framework.
Developments in our business units
In Private Banking, we are continuing to concentrate our activities on selected focus
markets. In addition to our Swiss home market, they comprise Germany, the US and
the emerging markets. These are regions in which we have been able to successfully
acquire new assets. In view of the very low levels of client activity in Private Banking,
profitability and efficiency were well below our targets.
In Investment Banking, we were unable to maintain the earnings power we displayed
in prior years due to the rise in risk premiums in Europe and the resulting volatility.
However, we largely achieved our market objectives and were able to defend our
strong position in the Swiss market. Our Financial Products division secured a place
among the top-10 providers in Germany. This represents an important milestone in the
international expansion of our business.
Asset Management, which has been led by Axel Schwarzer since spring 2011, achieved
a successful performance in the area of asset gathering, reporting impressive inflows
from institutional clients: over a period of 12 months, it attracted CHF 6.3 bn of net
new money, of which CHF 2.9 bn alone stemmed from growth markets in the Middle
East and Asia. Our global equity strategies for emerging markets and for developed
markets both achieved top rankings over 1, 3 and 5 years in a global performance
comparison. This confirms Vontobel’s competitiveness in terms of our investment
expertise and sales capacity.
Strong positioning is a source of opportunities
In the current challenging environment, our strong positioning, established brand and
solid balance sheet represent key success factors. Vontobel’s integrated business
model is founded on our strengths in wealth management, investment advisory, risk
management and product development – which represent our core competencies – as
well as on our independence. These different aspects form the basis for the achievement
of our ambitious mid-term targets. At the same time, we anticipate that conditions
will remain difficult over the coming months and we are adjusting our business
accordingly. This includes our efforts to significantly increase operating efficiency.
Shareholders’ letter
Vontobel Group, Annual Reports 2011 5

Shareholders’ letter
6 Vontobel Group, Annual Reports 2011
The Board of Directors will propose a distribution of CHF 1.10 per registered share – of
which CHF 0.73 will take the form of a withholding tax-free repayment of share
premiums and CHF 0.37 will comprise an ordinary dividend – to the General Meeting
of Shareholders.
We wish to express our sincere thanks to all the employees of the Vontobel Group,
whose efforts and commitment enable us to deliver on our motto “Performance
creates trust” every day. We also wish to express our gratitude to our shareholders and
clients for the trust they have placed in us.
Herbert J. Scheidt Dr Zeno Staub
Chairman of the Board of Directors Chief Executive Officer

The Vontobel Group combines the tradition and solidity of an independent, inter
nationally-oriented Swiss private bank and the innovative strength of an active international
asset manager and supplier of financial products. Our integrated business
model with the three business units Private Banking, Investment Banking and Asset
Management ensures close cooperation and allows us to successfully pool our expertise
and resources for the benefit of our clients and cooperation partners. We pursue a
systematic inter-business market strategy, both in our Swiss home market and our
focus markets. Each day, around 1,500 Vontobel employees throughout the world
create sustained added value for our clients. Whether they are in the heart of Zurich,
in New York or Dubai – teams in 22 international locations across 13 countries identify
trends and formulate innovative investment strategies and products for our clients.
Performance creates trust
At the Vontobel Group, the relationship with our clients is founded on performance
and trust. This is one reason why many of these relationships continue from one
generation to the next. We want to achieve a performance that inspires our clients
with confidence each time we serve them. We earn their trust by delivering on our
promises.
How we position ourselves
Vontobel is an internationally-oriented Swiss private bank. We specialize in asset
management for sophisticated private and institutional clients. Vontobel’s core competence
is centred around Private Banking, Investment Banking and Asset Management,
all for the benefit of its clients and cooperation partners in all areas of asset
management.
Our benefits for clients, employees and shareholders
– Our integrated business model, with its three core competencies Private Banking,
Investment Banking and Asset Management, allows us to combine know-how and
resources in the best interests of our clients and cooperation partners.
– We are an attractive and fair employer.
– As a long-term-oriented company we aim to offer our shareholders sustainable
growth of the company’s value.
– We strongly support social and cultural causes.
– We measure our success on the basis of mutually agreed benchmarks and report
regularly on our performance.
Our ambition
– We offer outstanding service quality.
– We are both objective-oriented and flexible in our work.
– We are experts in the development of tailored solutions.
– We communicate openly and transparently.
– We are the bank with short decision paths.
Vontobel Group
Our Company
Key messages in our
Mission Statement
Vontobel Group, Annual Reports 2011 7

Vontobel Group
8 Vontobel Group, Annual Reports 2011
Trust is at the core of our business
– We know that our success and the loyalty of our clients and cooperation partners
depend on the trust placed in us on a daily basis. And we know just what a precious
and fragile gift this is. Which is why we are so careful with it.
– We are a solid, independent partner.
– We have integrity.
– We are discrete and respect other privacy.
– We are transparent.
Our principles
Our solid reputation and the confidence accorded us are built upon a daily balance
between the quest for profit, the willingness to take risks and the principles of
responsible management. Our medium-term bank strategy is the embodiment of this
mission statement. It determines our operational aims, the measures taken to achieve
them and the responsibilities set out.

The Vontobel brand
A good corporate name is today more important than ever before in determining the
success of a company. Banks are therefore investing increasingly in their brands,
which serve as a valuable guide for clients when selecting a financial partner.
Our corporate identity is a decisive factor in achieving a uniform corporate image and
presence both internally and externally. Within our company, the Vontobel brand
provides us with a clear sense of identity. Our brand is conveyed externally through
the systematic application of our corporate design, which guarantees a consistent
overall presence in our communication with the market. Vontobel employees have a
key role to play in this context by acting as the primary ambassadors for our brand in
their contact with clients and business partners. Their conduct and performance are
key in determining the way Vontobel is perceived in the public arena. Our claim
“Performance creates trust” is a powerful and unique expression of our brand
promise.
We have a clearly defined brand structure. At company level, we operate as the
Vontobel Group with our three business units Private Banking, Investment Banking
and Asset Management. At the next level, the visual presence of Bank Vontobel,
Vontobel Financial Products, Harcourt Investment Consulting and Vontobel Swiss
Wealth Advisors reflects the Vontobel brand. In the area of structured products, the
derinet ® portal (www.derinet.com) offers interested investors a range of information
on these instruments. In addition, the electronic sales platform deritrade ® provides
customized solutions for our institutional clients in Switzerland and Germany. Fund
investors can find all the information they require about Vontobel's range of investment
funds on the online portal FundNet ® (www.fundnet.com).
We are committed to continuously developing Vontobel’s strong corporate brand in
order to increase the loyalty of our clients, business partners and shareholders.
Vontobel Group
Brand strategy
Vontobel Group, Annual Reports 2011 9

Sustainability at the Vontobel Group
10 Vontobel Group, Annual Reports 2011
Thinking and acting long term in response to the acceleration of change
Our world is evolving rapidly in many different areas: resources are growing scarcer
and our climate is changing, creating the need for us to innovate. The rapid developments
in the business world mean that employees must now engage in continuous
learning. At the same time, the turmoil in the financial markets is altering long-established
rules and practices in the investment business, while the calls for transparency
are growing louder. This process of change poses a challenge for both organizations
and individuals and is increasing the need for a long-term approach to business.
At the Vontobel Group, we have a tradition of thinking and acting long term: for 88
years, we have been offering our clients high-quality services that are founded on a
combination of continuity and constant innovation. To maintain our sustainable approach,
it is now more important than ever for us to adapt our business to these
changes and to use them to our advantage. We strive to achieve this at various levels.
In the investment business, changes are a constant source of opportunities – provided
you recognize them at the right time. We want our investment processes to be
successful in the long term thanks to the structured integration of change-related
themes and we recently reaffirmed this commitment by signing up to the Principles
for Responsible Investment (PRI). The fact that we now actively exercise our voting
rights for all the products in our Global Change Investing line represents an important
milestone in the implementation of these principles. Long-term planning is also
increasingly important in our banking business – whether it is in sourcing goods and
services or in achieving consistent improvements in our heating, air conditioning and
cooling systems. The energy audit we conducted in our largest office building has
helped us to significantly reduce the level of energy consumed by these various systems
in Zurich. In future, we will focus on integrating sustainability criteria into our
investment products and on optimizing energy consumption in other buildings.
In periods of rapid change, transparency is of key importance in inspiring trust. In the
following chapter 'Sustainability at the Vontobel Group', we therefore provide an insight
into our diverse efforts to conduct our activities based on a long-term perspective
and to run our business sustainably. For the first time, our Annual Report meets
all the requirements of the Global Reporting Initiative (GRI) – an internationally recognized
standard for sustainability reporting – in terms of its form and content. We
are pleased to provide our most transparent account yet of how we use the changes
occurring around to benefit our clients and our company.
Dr Zeno Staub, CEO of the Vontobel Group

Sustainability – committed to continuous improvement
As a financial services provider, the Vontobel Group is closely interconnected with
the economy and society in all the locations where we operate. Consequently, the
nature and design of our products and services and the way in which we conduct our
banking operations have an impact on the sustainable development of this integrated
world. At Vontobel, we regard all the aspects of our activities – from creating attractive
jobs and offering innovative and sustainable products and services to paying
taxes, saving energy and resources and engaging in an active dialogue with the public
about the role of banks – as both an economic necessity and a moral obligation in
order to promote sustainable development within our markets.
The Vontobel Group's mission statement forms the basis of our sustainability commitments.
The core values defined by the Board of Directors in our mission statement
are expressed in concrete terms in two documents:
– Our Code of Conduct defines basic principles that employees must observe to ensure
that we perform our business activities in a fair and forward-looking manner.
– The Sustainability Guidelines define the areas in which we take action to implement
our sustainability strategy.
All of these documents are available on the Vontobel Group's website (www.vontobel.com).
In our commitment to operating sustainably, we take account of the interests of all
our stakeholders: clients, shareholders, employees, society and the environment. Our
sustainability strategy is therefore based on these five dimensions. The Sustainability
Committee, which is chaired by the CEO, defines the strategic thrusts of our Groupwide
sustainability activities and determines the measures that we must take to meet
our goals and achieve constant improvements. The gathering of key sustainability
data is an important means of measuring our progress and of prioritizing our next
steps. The Sustainability Committee consists of representatives of our three business
units Private Banking, Investment Banking and Asset Management, as well as all relevant
Group functions. The measures defined by the Committee are implemented by
the Sustainability Management unit in collaboration with the relevant specialist
departments.
A transparent information policy is vital in order to operate sustainably. At the Vontobel
Group, we consider it important to provide our shareholders, clients, employees
and other interested parties with clear and comprehensible information about the
different challenges and opportunities that exist for Vontobel in terms of environmental,
social and governance themes in order to strengthen trust in the company.
This report has been drawn up according to the principles prescribed in the Global
Reporting Initiative (GRI) for the first time. It is supplemented by a GRI index, which
is available at: www.vontobel.com/CH/EN/Vontobel-Group-Corporate-Responsibility-Reporting.
This index shows all of the GRI indicators and provides an overview of
where the corresponding information can be found. A statement issued by the GRI
(see page 187) confirms that our company has met the B-level standard for sustainability
reporting.
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 11

Sustainability at the Vontobel Group
12 Vontobel Group, Annual Reports 2011
The Vontobel Group's sustainability commitments have also been recognized by external
institutions. For example, we achieved the second highest rating level in the
rankings produced by the Swiss news magazine 'Bilanz' and thus performed very well
relative to other banks. The rating awarded to Vontobel by the sustainability rating
agency Inrate was well above average for both environmental and social themes and
the company was thus classed as 'sustainable'.
These and other results provide us with an incentive to strive for continuous improvements
in the various dimensions of our sustainability commitments. The information
provided in the following pages illustrates the progress achieved in the year under review.
Going forward, our company will continue to focus on achieving constant
progress in all areas of sustainability. Updates on our activities can be found on the
Vontobel Group's website.
Focus on clients
At the Vontobel Group, our first priority each day is to achieve client satisfaction,
which is why we strive to continuously improve our product and service offering.
The individual advice enjoyed by Vontobel clients forms the essence of a good client
relationship – especially in Private Banking. Our relationship managers take time to
identify the wishes and needs of our clients based on a structured assessment of their
personal circumstances and individual preferences. They then draw on the insights
they have gained to offer the best possible services for each client.
In 2011, we used the results of a client survey conducted in autumn of the previous
year to implement targeted measures to enhance our products and services. The survey
assessed the views of private clients in Switzerland, Germany and Austria regarding
the advisory and service quality offered by Vontobel Private Banking. More than
20% of the clients we contacted took the time to complete the questionnaire. Of
these respondents, over 90% indicated that they were satisfied overall, with around
70% stating that they were either very or extremely satisfied. Their feedback also
highlighted the areas in which Vontobel Private Banking can further improve its performance.
The measures implemented on the basis of this input ranged from the
streamlining of processes to the introduction of a new, focused advisory approach: in
May 2011, we launched a new advisory service in Private Banking to provide clients
with prompt and attractive investment recommendations. The investment proposals
take account of each client's individual circumstances and existing investments and
ensure that clients who make their own investment decisions are made aware of compelling
investment opportunities. In the case of our 'premium' advisory mandate, relationship
managers meet with clients three or four times per year to discuss portfolio
analyses, making the investment service even more attractive.
An important development in Asset Management was the launch of a new information
platform on investment funds. Private and institutional investors can rapidly access
comprehensive information about all Vontobel investment funds and view the
relevant documents online at: www.vontobel.com/fundnet. In addition, Vontobel

has complied rapidly with the new legal requirements governing the provision of information
about UCITS funds: by the end of October 2011, the Key Investor Information
Documents (KIIDs) for all funds under Luxembourg law had already been made
available. These documents meet high standards in terms of clarity and transparency
and notify clients of the opportunities and risks associated with the investment funds.
The provision of transparent information on products is also a high priority in Investment
Banking. Various parties (including FINMA) have regularly confirmed that Vontobel
Financial Products produces very transparent sales documentation about structured
products. Furthermore, our company supports efforts to provide clear,
standardized client information on structured products through its role in the Swiss
Structured Products Association and also regularly offers interested clients training
courses about these products.
Vontobel's ability to satisfy its clients' wishes depends to a large extent on the expertise
of its relationship managers. We have therefore introduced specific training programs
for various areas of business to help relationship managers to continuously develop
their specialist knowhow and advisory skills. A wide range of topics was covered
in 2011. In Private Banking, this included a course about financial advisory services
for women, with interactive workshops at which the participants focused on specific
quality-related aspects when advising this group of clients. A programme launched in
2011 for all employees combines a light lunch with a training session about banking
topics. During the year under review, information events were held about innovative
technologies as an investment theme, the new investment recommendation service
in Private Banking, and structured products – attracting a high level of interest among
employees.
These different measures to enhance client satisfaction are proving effective: Vontobel
Private Banking was named 'Best Private Banking Boutique' by the renowned specialist
publications 'Professional Wealth Management' (PWM) and 'The Banker',
which are produced by the Financial Times Group. The Global Private Banking
Awards, which cover a range of categories, are presented to leading financial institutions
that have delivered high standards of quality and have realigned their business
models at an early stage to provide beneficial solutions in response to evolving client
needs. Vontobel Private Banking's commitment to quality forms the basis for longterm
client relationships that often extend from one generation to the next.
Better insight into opportunities and risks in the investment business
As a wealth and asset manager, Vontobel believes that the consideration of sustainability
criteria in the investment business is an essential element of a comprehensive
sustainability strategy. As a signatory to the Principles for Responsible Investment
(PRI) – a UN initiative to promote a sustainable approach to investment – Vontobel
continued to advance the integration of environmental, social and governance risks
in its wealth and asset management activities during the year under review.
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 13

Sustainability at the Vontobel Group
14 Vontobel Group, Annual Reports 2011
In Asset Management, the voting rights for all Global Trend and Global Responsibility
funds are now actively exercised according to a voting rights policy drawn up in
conjunction with an external company specializing in the sustainable exercising of
shareholder rights (Hermes EOS). This policy sets out basic principles for a long-term
approach to business and good corporate governance. At the same time, a dialogue
is conducted with the companies that the funds invest in to address issues that are regarded
as a risk for investors. For example, discussions were held with one American
oil company about improvements in safety standards at its platforms in the Gulf of
Mexico. A further example is the dialogue with various communications and media
firms to ensure they have appropriate systems in place to protect client data.
Discussions such as these provide equity analysts with a profound insight into the opportunities
and risks to which each company is exposed. At the same time, this type
of dialogue paves the way for gradual improvements in standards and the minimization
of risks. By drawing up detailed sector papers that clarify key sustainability issues
relating to each industry, Vontobel has further increased its internal expertise on the
systematic integration of sustainability criteria into investment processes. The sectorspecific
papers help equity analysts to identify potential risks at an early stage and to
consider them in their assessments.
In the year under review, the Vontobel Group introduced a policy on controversial
arms to ensure that no investment funds or actively managed assets are invested in
companies that manufacture land mines or cluster munitions banned under international
conventions or that any such companies are actively recommended to investors.
Vontobel’s offering of innovative, sustainable investment products enables clients to
invest in future-oriented themes and to thus achieve a financial return while contributing
towards sustainable development. The focus here is on our Global Trend and
Global Responsibility funds, which address diverse aspects of global change using
different approaches.
The Global Responsibility funds invest in companies across all sectors and apply a
range of sustainability criteria during the selection process. In addition to the existing
funds, Global Responsibility Emerging Markets Equity was launched in 2011. This
fund enables investors to participate in attractive emerging markets while taking account
of sustainability criteria. In total, the Global Responsibility funds reported CHF
272 mn of assets under management at the end of 2011. The sustainable funds bear
the Eurosif transparency logo, which guarantees that investors are fully informed
about the investment process as well as the funds' selection criteria.
In addition to the sustainability funds, a range of theme funds from the Global Trend
family are available that focus on various key trends such as the restructuring of the
energy system, the more efficient use of resources and the supply of clean technologies.
At the end of 2011, the three Vontobel funds Global Trend New Power, Global
Trend Future Resources and Global Trend Clean Technology reported total assets under
management of CHF 364 mn.

In addition, Vontobel Asset Management manages sustainability and theme funds
with a volume of CHF 2,124 mn of assets on behalf of cooperation partners such as
Raiffeisen. Through its participation in responsAbility, an organization specializing in
social investments and microfinance investing, Vontobel also supports the provision
of microfinance funds and other innovative financial products.
Sustainable and theme funds managed by Vontobel
2011 2010 2009
Volume of sustainable funds (in CHF mns) 2,409 2,470 1,601
Volume of theme funds (in CHF mns) 418 527 750
Vontobel offers private clients a type of portfolio management mandate that takes account
of sustainability criteria and is broadly diversified across various asset classes.
Three different investment strategies are available. Unlike other forms of portfolio
management, all of the investments undergo a clearly defined sustainability review.
This gives investors the opportunity to participate in the success of sustainable companies
and to combine their personal values with their investment activities.
Investment Banking offers a variety of structured products that focus on sustainability
themes. In 2011, Vontobel Financial Products launched a new certificate on the
theme of press freedom that is based on an investment in a media development loan
fund. It also launched a product that focuses on diversity within the management
teams of companies – a factor that studies have shown to be a success factor. The 'Top
Executive Women' basket consists of shares in firms in which women are well represented
in the executive management or Board of Directors.
Sustainable investments 2011 2010 2009
Volume of sustainable investments (in CHF mns) 1 3,755 4,066 3,176
Share of sustainable investments (in % of AuM) 2 4.0 4.8 3.6
1 Including volume of structured products
2 Excluding volume of structured products
The volume of sustainable investments managed by the Vontobel Group declined by
8% compared to the previous year which was mainly caused by decreasing share
prices. Measured as a proportion of total assets under management (AuM), this corresponds
to a reduction of 0.8 percentage points.
Clients who wish to use part of their wealth to promote worthwhile causes can lend
their support to projects that focus on social issues, culture, ecology, education or
medicine through Bank Vontobel’s charitable foundation. In 2011, the foundation
made donations to various organizations that create employment for disadvantaged
people. The different projects aim to provide these individuals with enough professional
qualifications to facilitate their integration into the labour market. Two institutions
that benefited during the year under review were the 'Verein Sorebo', which offers
a total of 24 integration and training places in two catering businesses in Zurich
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 15

Sustainability at the Vontobel Group
16 Vontobel Group, Annual Reports 2011
Oberland, as well as the Stiftung Wetterbaum in Frauenfeld, which creates jobs in
various areas for the long-term unemployed. In the field of medicine, one of the organizations
supported by the charitable foundation was 'Onko Family Care' in Küsnacht
– an association that provides free support and advice to families with a child
or parent suffering from cancer, as well as training volunteers to assist such families.
Focus on employees
The Vontobel Group counts on the skills and expertise of its 1,487 employees, who
work in 6 different locations in Switzerland and 16 locations internationally. During
the year under review, Vontobel's headcount rose by 5% to a total of 1,487 employees,
which corresponds to 1,413.4 full-time equivalents. In addition to these members
of staff with permanent contracts, a total of 81 temporary employees worked
for Vontobel as of the end of 2011. These individuals have fixed-term contracts or are
available on an 'on call' basis to assist the company when needed.
Number of employees by
domicile
Number
of
women
Number
of
men Total
31-12-11 31-12-10
Number
of
women
Number
of
men Total
Switzerland 379 822 1,201 382 779 1,161
Germany 36 48 84 37 41 78
United Kingdom 2 7 9 2 5 7
Italy 9 16 25 7 15 22
Liechtenstein 9 5 14 8 5 13
Luxembourg 6 6 12 4 6 10
Austria 35 25 60 32 24 56
Spain 0 1 1 1 2 3
USA 16 34 50 15 34 49
Hong Kong 2 6 8 3 3 6
U.A.E 5 13 18 2 6 8
Sweden 1 2 3 1 2 3
Cayman Islands 1 1 2 1 1 2
Total 501 986 1,487 495 923 1,418
Numbers include trainees
Vontobel's workforce is very diverse in many respects – including in terms of the nationalities,
gender and age of its employees. The principle of non-discrimination is
firmly enshrined in Vontobel's Code of Conduct. We actively foster a culture of diversity
based on the belief that this is a positive factor that contributes to the success
of our company. For example, a special workshop is on offer for managers at
Vontobel with the aim of promoting diversity within teams and harnessing its benefits.
When recruiting new employees, it is important to ensure that the appropriate
candidates are selected to enhance the diversity of the workforce. The following tables
show the various nationalities represented within Vontobel, the proportion of
men and women at different levels of the company, the age structure of employees
and their period of service.

Nationalities of employees
31-12-11 31-12-10
Number in % Number in %
Switzerland 1,013 68 995 70
Germany 171 11 152 11
Austria 65 4 57 4
Italy 61 4 58 4
USA 48 3 49 3
Spain 9 1 13 1
France 12 1 16 1
United Kingdom 23 2 22 2
Other 85 6 56 4
Total 1,487 100 1,418 100
Age structure
31-12-11 31-12-10
Number in % Number in %
Up to 20 years old 23 2 22 2
20 to 30 years old 169 11 165 12
30 to 40 years old 508 34 485 34
40 to 50 years old 493 33 470 33
50 to 60 years old 240 16 228 16
More than 60 years old 54 4 48 3
Total 1,487 100 1,418 100
Age structure Board of Directors
31-12-11 31-12-10
Number in % Number in %
40 to 50 years old 4 50 3 38
50 to 60 years old 1 12 2 24
More than 60 years old 3 38 3 38
Total 8 100 8 100
Seniority structure
31-12-11 31-12-10
Number in % Number in %
Up to 1 year 255 17 215 15
1 to 5 years 577 39 588 41
5 to 10 years 318 22 309 22
10 to 20 years 244 16 207 15
20 to 30 years 77 5 84 6
More than 30 years 16 1 15 1
Total 1,487 100 1,418 100
Sustainability at the Vontobel Group
over 60 years
over 30 years
50 to 60 years
20 to 30 years
40 to 50 years
10 to 20 years
30 to 40 years
5 to 10 years
20 to 30 years
Age structure 2011
up to 20 years
500
400
300
200
100
Vontobel Group, Annual Reports 2011 17
0
Seniority structure 2011
1 to 5 years
up to 1 years
600
500
400
300
200
100
0

Sustainability at the Vontobel Group
Male/female proportion
per management level
600
500
400
300
200
100
0
Women
Man
Employee
Middle management
Senior management
Male/female proportion
in part time positions
1,000
800
600
400
200
0
Women
Man
20 – 49%
50 – 79%
80 – 99%
Executive Management
100%
Board of Directors
18 Vontobel Group, Annual Reports 2011
Proportion of males/females at different levels of management in 2011
Number of
women
Proportion of
women
Number of
men
Proportion of
men
Employee 173 51% 163 49%
Middle management 229 48% 246 52%
Senior management 99 15% 571 85%
Group Executive Management 0 0% 6 100%
Total 501 34% 986 66%
Board of Directors 2 25% 6 75%
Vontobel assigns considerable importance to the provision of attractive working conditions
for its employees to motivate them to deliver a good performance and contribute
to the achievement of the bank's objectives in the future. This includes promoting
a healthy work/life balance. For example, the conditions for maternity leave
and paternity leave granted to working parents exceed the statutory minimum. After
completing six years of service, female employees benefit from six months of maternity
leave on full pay, while members of staff who have been with the company for a
shorter period of time are entitled to four months of maternity leave. New fathers are
granted five days of paternity leave.
Vontobel has, for many years, been a member of Childcare Service, an organization
that advises parents on childcare issues and runs a group of nurseries. Vontobel is
also a member of kcc group (kid’s care concept) that offers families holistic childcare
solutions. Wherever possible from an operational perspective, Vontobel endeavours
to meet requests for part-time working arrangements from employees, including
members of middle management. During the year under review, various employees
attended a work/life balance course to obtain valuable advice on how to divide their
time between their professional and personal commitments more effectively. Some
employees also received advice on how to prepare for their retirement.
The following table shows how many Vontobel employees work on a part-time basis.
Compared to the previous year, there was virtually no change in the percentage of
part-time positions: the proportion of female employees at Vontobel who work on a
part-time basis decreased by one percentage point to a total of 31%, while the proportion
of men in part-time positions rose by one percentage point to a total of 8%.
Vontobel’s willingness to offer solutions to help employees combine their professional
activities and family commitments is demonstrated by the fact that 15% of the
entire workforce is not employed on a full-time basis.

Proportion of males/females in part-time positions in 2011
Number of Proportion
women of women
Number Proportion
of men of men
Total Proportion
number of total
20 – 49% 17 3% 7 1% 24 1%
50 – 79% 74 15% 28 3% 102 7%
80 – 99% 63 13% 37 4% 100 7%
100% 347 69% 914 92% 1,261 85%
Total 501 100% 986 100% 1,487 100%
Vontobel manages all employees according to the principles of Management by Objectives
(MbO). The annual MbO process is an important tool to help employees
achieve specific goals. The conduct and performance of all members of staff is evaluated
annually in an employee appraisal. This process also provides the basis for targeted
measures to develop the talents of employees. Underscoring the importance of
this management tool, Vontobel ran a new course in 2011 to encourage managers to
make systematic use of MbO methods and employee appraisals; the event also gave
them an opportunity to practice the skill of leading discussions professionally. Moreover,
newly appointed managers have, for years, attended three-day courses that not
only cover general management principles but also provide a comprehensive insight
into the company's management culture and management tools.
The provision of training and development opportunities is an important part of the
Vontobel Group's attractiveness as an employer. It offers an extensive range of internal
and external courses on specialist subjects, working methods, personal development
and management topics. The training courses that employees attend are determined
during their annual appraisals; this includes being given the opportunity to
complete external courses with the support of the company. Vontobel also offers a
range of attractive apprenticeships to enable young people to embark on a career in
this fascinating industry. The company subsequently benefits from having access to a
pool of well-qualified young professionals who can be offered a permanent position
within the bank. In 2011, Investment Banking launched a varied new graduate trainee
programme. Over a period of between 18 months and 2 years, graduates learn about
different aspects of investment banking and also have the opportunity to gain international
experience by working at Vontobel locations around the world.
Turnover and training 2011 2010 2009
Fluctuation rate (in %) 11.6 9.3 1 8.6 2
Training costs (CHF 1,000) 2,349 2,167 1,777
Training costs (CHF/FTE) 1,579 1,528 1,306
Number of trainees 22 21 22
1 Excluding staff changes resulting from the acquisition of Commerzbank (Schweiz) AG
2 Excluding staff changes resulting from a cost-cutting exercise
The rate of employee turnover increased by 2.3 percentage points compared to 2010.
Training expenditure rose in both absolute terms and in terms of the amount spent
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 19

Sustainability at the Vontobel Group
20 Vontobel Group, Annual Reports 2011
per employee. During the year under review, Vontobel offered 22 apprentices an attractive
training position.
The Group Executive Management considers it important to inform new employees
in person about the company's strategy, objectives and culture. Vontobel therefore
holds regular Welcome Days at which each member of the Group Executive Management
talks to new employees about his area of responsibility and answers any questions
they have. New employees have responded very positively to the fact that the
managers are personally involved in the induction event, which reflects Vontobel's
culture of promoting an open dialogue.
In the year under review, the bank introduced a new programme for senior managers
to further develop their social skills. Vontobel executives can now spend one week in
a social institution of their choice – ranging from clinics for people suffering from addiction
to children's homes. The programme enables them to discover a very different
type of working environment and to gain an insight into a different world. The response
from the first participants was very positive: they found it highly beneficial to
gain an understanding of the way other people live and of different corporate cultures,
and they benefited from the opportunity to meet new people.
Actively promoting health and wellbeing in the workplace is an important aspect of
Vontobel’s focus on employees. For example, the company regularly offers free influenza
immunizations to members of staff. Employees can enjoy a healthy meal each
day in the staff restaurant at Vontobel’s head office. The restaurant is operated by
SV-Service, which pursues a comprehensive sustainability strategy. In addition, fresh
fruit is offered to employees in the workplace on a daily basis. Vontobel's sports club
enables employees to participate in different forms of exercise in order to strike a balance
with their work on a physical level. The club also gives them a chance to get to
know their colleagues in a different setting. The newly established running group immediately
attracted a high level of interest among Vontobel employees, many of
whom now train together.
Changes in employee behaviour enable Vontobel to strengthen its contribution towards
building a stable society and preserving a sound environment. The company
regularly raises awareness of these issues among employees through online articles
and various other campaigns. In summer 2011, Vontobel once again participated in
the 'Bike to Work' campaign that encourages employees to cycle to the office instead
of taking the car or public transport. A campaign to collect old mobile telephones
also generated a very positive response, with numerous phones being donated by
employees so that they can be reused or recycled properly.
Long-term compensation concept
The compensation concept introduced by Vontobel in 2005 provides employees with
an incentive to focus on long-term performance and to contribute to the sustained
success of the company. The concept largely satisfies the demands for sustainable,
integrated compensation systems that are being widely debated. Further information
on this topic can be found in the chapter 'Information relating to corporate governance'
in the section 'Compensation, shareholdings and loans' as well as in the Notes

to the consolidated financial statements, note 29. Our compensation system places a
strong emphasis on the long-term performance of the Vontobel Group and defers the
payment of part of the variable compensation awarded to participating employees.
In this way, we encourage and reward responsible and risk-conscious conduct that is
in the best interests of the company.
Environmental and climate protection – an ongoing commitment
Reducing the environmental impacts of our banking operations is a key objective at
the Vontobel Group. In 2011, we once again made progress at various levels.
Our key sustainability indicators illustrate the improvements we achieved in many areas.
In individual cases, the indicators were also influenced by the increasing quality
of data collection. The second table shows all of the figures in relation to the number
of full-time equivalents at the Vontobel Group and thus reflects the environmental
impact per employee – a measure that improves comparability (both over time and
with other organizations).
Environmental key figures absolute 2011 1 2010 2009
Total energy consumption (MWh) 12,922 14,328 14,361
Electricity consumption (MWh) 9,060 9,546 10,185
Heat consumption (MWh) 3,168 3,970 4,080
District heating usage (MWh) 694 812 96
Business travel (1,000 km) 14,748 14,262 12,501
Paper consumption (t) 194 259 269
Proportion of recycled paper used (%) 12 13 9
Proportion of FSC-label paper used (%) 81 79 73
Water consumption (drinking water, m3 ) 21,462 24,975 23,432
Volume of waste (t) 309 285 299
Recycling ratio (%) 71 623 Total greenhouse gas emissions
64
(CO2 equivalents in t) 2 Greenhouse gas emissions: scope 1 and 2
3,799 4,003 4,090
(CO2 equivalents in t) 2 Greenhouse gas emissions: scope 3
1,365 1,526 1,846
(CO2 equivalents in t) 2 2,434 2,477 2,244
1 Figures based on revised period (01-10-10 – 30-09-11)
2 Definition according to GHG Protocol
3 Adjusted figure
Sustainability at the Vontobel Group
Total energy consumption
per employee (kWh/FTE)
2009
2010
2011
12,000
10,000
8,000
6,000
4,000
2,000
Vontobel Group, Annual Reports 2011 21
0
Business travel
per employee (km/FTE)
2009
2010
2011
12,000
10,000
8,000
6,000
4,000
2,000
0

Sustainability at the Vontobel Group
22 Vontobel Group, Annual Reports 2011
Environmental key figures per employee 2011 1 2010 2009
Total energy consumption (kWh/FTE) 9,305 10,644 11,522
Electricity consumption (kWh/FTE2 ) 6,524 7,092 8,172
Heat consumption (kWh/FTE) 2,281 2,949 3,273
District heating usage (kWh/FTE) 500 603 77
Business travel (km/FTE) 10,619 10,595 10,030
Paper consumption (kg/FTE) 139 193 216
Water consumption (drinking water, l/FTE) 15,454 18,553 18,801
Volume of waste (kg/FTE)
Total greenhouse gas emissions
223 212 240
(CO equivalents in kg/FTE) 2 3 Greenhouse gas emissions: scope 1 and 2
2,735 2,974 3,283
(CO equivalents in kg/FTE) 2 3 Greenhouse gas emissions: scope 3
982 1,134 1,482
(CO2 equivalents in kg/FTE) 3 1,753 1,840 1,801
1 Figures based on revised period (01-10-10 – 30-09-11)
2 FTE = Full Time Equivalent
3 Definition according to GHG Protocol
The consumption of both electricity and heat decreased in the year under review in absolute
terms and per employee. This pleasing development reflects a host of different
factors. For example, Vontobel made various changes to the structure of its largest
data processing centre in 2011 to reduce the amount of electricity used by its cooling
systems. The systematic procurement of energy-saving computers (for use both in the
data processing centres and for desktop applications) also reduced electricity consumption.
In 2011, the company installed new printers that switch to energy-saving
mode much more rapidly than the previous models. As a result of all these measures,
we achieved a reduction in our electricity and heat consumption in our Swiss locations
in particular. At the same time, it should be noted that the winter of 2011 was warmer,
thus reducing heating requirements and lowering consumption in this area. In view of
the positive insights gained from the energy audit conducted at our main office building
in Zurich in 2010, a new energy audit was launched at our second largest building
in Zurich in 2011. The results will become available this year and are once again
expected to provide the basis for significant savings.
The level of business travel per employee was largely in line with the previous year, reflecting
a slight increase in travel by staff in international locations, while employees in
Switzerland travelled less. This decrease was partly attributable to the further expansion
of Vontobel's telephone and videoconference facilities. Paper consumption declined
overall, reflecting a reduction in the amount of marketing materials printed as
well as a decrease in the amount of paper used by employees for printing and photocopying
purposes. Another factor is the improved recording of data at Vontobel's international
locations, which resulted in lower consumption figures. The photocopying and
printing paper used at Vontobel now contains at least 50% recycled fibres, thus significantly
reducing the use of fresh fibres. Water consumption fell significantly both in absolute
terms and per employee: this was primarily the result of the energy audit conducted
at Vontobel's largest office building in Switzerland. The subsequent measures

to optimize the operating settings and operating times of the ventilation system not
only reduced electricity usage but also water consumption. The increase in the waste
volume is primarily due to the more accurate recording of the relevant data at international
locations rather than to an actual rise in the quantity of waste.
Greenhouse gas emissions per employee decreased by approximately 8% compared to
2010. This trend is primarily driven by the lower consumption of heat and electricity
but also reflects improvements in the quality of data collection compared to the previous
year. The whole of the Vontobel Group has been carbon neutral since 2009. At the
end of 2011, the Sustainability Committee decided to extend the company's greenhouse
gas neutrality by at least three years to 2014. In conjunction with the established
partner Southpole, Vontobel purchased emissions reduction certificates that are
equivalent to our annual global CO2 output, thus fully offsetting our greenhouse gas
emissions. The proceeds from the purchase of the certificates enable companies in developing
countries and emerging markets to conduct renewable energy projects. Vontobel
has selected the following interesting schemes to offset its emissions over the
next three years: a geothermal project in Turkey, the construction of micro hydropower
stations in rural areas of China, and the building of various wind parks in India. Detailed
information on these individual projects can be found on Vontobel's website.
Vontobel also decided to make changes to its supply policy relating to the employee
restaurant. Virtually all categories of meat served in the restaurant were already
sourced from within Switzerland. In future, chicken will also be purchased from Swiss
suppliers. This not only reduces the distance over which food has to be transported but
also guarantees higher animal welfare standards.
Social responsibility generates added value
There is a long tradition of social responsibility at the Vontobel Group. Our company is
part of the global economic system and we profit, in particular, from the excellent operating
conditions in our Swiss home market in terms of the high standards of education,
good infrastructure and political stability. Vontobel therefore considers it important
to make a contribution that benefits society.
The payment of corporate taxes each year is one important way in which we assume
our social responsibilities. In addition, our shareholders benefit from a favourable dividend
policy under which we endeavour to pay dividends as continuously as possible.
Compared to the previous year, value creation decreased slightly, yet higher taxes were
paid. The dividend distributed by Vontobel Holding AG for the financial year 2010 was
virtually unchanged compared to the previous year.
External stakeholders 2011 2010 2009
Added value (in CHF mns) 1 526.6 572.0 551.2
Tax liability (in CHF mns) 2 36.9 30.2 16.5
Dividends paid (in CHF mns) 90.5 90.2 77.4
1 Operating income less depreciation of fixed assets and intangible assets
2 Includes profit tax, capital gains tax and other taxes and contributions
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 23

Sustainability at the Vontobel Group
24 Vontobel Group, Annual Reports 2011
The bank regards legal compliance as an essential business requirement that we implement
using appropriate processes. All business areas are monitored continuously
as part of Vontobel's compliance processes to detect any possible legal infringements
or to identify risks of corruption. Upon joining Vontobel, all employees are given an
Employee Handbook that sets out specific regulations and instructions and contains
our Code of Conduct. Regular training sessions are held to repeatedly remind employees
of the need to comply with existing regulations in order to prevent breaches
of internal rules or even legal requirements.
Bank Vontobel lends its support to sporting, cultural, environmental and educational
activities by providing donations and sponsorship funding. As a founding member of
the Climate Foundation Switzerland, Vontobel once again contributed to several climate
protection projects conducted by Swiss small and medium-sized enterprises
(SMEs) in 2011. The Climate Foundation supported the work of the Ökozentrum Langenbruck,
which is developing 'Smile' – an attractive small electric vehicle for use in
city traffic. In addition, a gardening centre received financial support for the installation
of innovative geothermal wells to heat its greenhouses. In 2011 Vontobel donations
amounted to CHF 676,000.
The level of donations made in 2011 was slightly lower than in the previous year since
the sum paid in 2010 comprises a three-year contribution to the Climate Foundation
Switzerland.
It is not only monetary contributions that are beneficial: society can also benefit from
the transfer of knowledge. A number of Vontobel employees share their financial expertise
with others by giving talks and presentations at training events held internally
or by external organizations. The Vontobel Group believes it has a duty to make its financial
knowhow available to employees as well as to broader sections of society in
order to create greater public understanding of the complex interrelationships within
the financial markets and of the importance of the finance industry for the Swiss
economy.
The Vontobel Group purchases a large number of products and services from external
partners, ranging from cleaning services and IT equipment to the design and production
of printed materials. We therefore assign considerable importance to ensuring
that our own sustainability principles are upheld by our business partners. This
includes guaranteeing high employment standards, respecting human rights, making
careful use of natural resources and preventing corruption. The sustainable purchasing
guidelines approved in 2010 were therefore defined in more concrete terms during
the year under review for marketing activities, office supplies, building services
and IT. The sustainable purchasing guidelines are gradually being integrated into our
contracts with service providers.
The Vontobel Group is involved in various organizations that promote a more sustainable
approach to business within the finance industry and has signed up to the
relevant declarations. In this way, we actively support the sustainable development
of both the financial system and the economy as a whole.

Organizations committed to the sustainable development of the economy and
finance industry of which Vontobel is a member:
– The Sustainability Forum (TSF), an international network that promotes a dialogue
between various stakeholders in the financial sector. Vontobel is represented
within the organization – our CEO Zeno Staub holds the position of TSF
President – meaning that we help to shape the organization's activities.
– Climate Foundation Switzerland, of which Vontobel is a founding member. The
Climate Foundation provides financial support for projects to improve energy efficiency
in small and medium-sized enterprises.
– Öbu, a think-tank for environmentally conscious management. This association of
Swiss firms conducts company-specific initiatives as well as projects relating to
economic policy.
– Energy Agency for the Economy (EnAW), which was founded by business associations
with the aim of enhancing energy efficiency among its members and encouraging
them to reduce their level of CO2 emissions.
– Principles for Responsible Investment, a UN initiative signed by the Vontobel
Group under which we pledge to gradually implement six principles relating to the
broad-based integration of sustainability criteria into investment processes.
– Sustainable Investment Forum (FNG), an industry association that promotes sustainable
investing in Germany, Austria and Switzerland. Vontobel is represented
on its Management Board and coordinates the activities of the Swiss branch of
the organization.
– Forum per la Finanza Sostenibile, an Italian forum for sustainable investing.
Vontobel’s efforts to take greater account of sustainability across all areas of our
business are part of an ongoing commitment in this area. We will therefore strive to
achieve continuous improvements in the many fields of sustainable business management
going forward.
Regular updates on our progress are available on the Internet (at www.vontobel.
com/sustainability).
Sustainability at the Vontobel Group
Vontobel Group, Annual Reports 2011 25

Review of business activities
Client assets (CHF bns)
150
100
50
0
Assets under management
(CHF bns)
80
70
60
50
40
30
20
10
0
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
26 Vontobel Group, Annual Reports 2011
The Vontobel Group reports record inflow of new money and subdued earnings performance
in the financial year 2011
The 2011 results were markedly impacted by the challenging environment. Against
the backdrop of the European debt crisis, high levels of volatility and low interest
rates, Vontobel reported a 23% decline in net profit to CHF 113.8 mn. The return on
equity was 7.5%, compared to 9.8% in the previous year. Basic earnings per registered
share totalled CHF 1.78 (2010: CHF 2.31). The Board of Directors will propose a
distribution of CHF 1.10 per registered share – of which CHF 0.73 will take the form of
a withholding tax-free repayment of share premiums and CHF 0.37 will comprise an
ordinary dividend – to the General Meeting of Shareholders.
The Vontobel Group was directly impacted by the operating conditions referred to
above. However, its performance also included a number of encouraging highlights.
Particularly pleasing is the record net inflow of new money totalling CHF 8.2 bn in the
financial year 2011, corresponding to a growth rate of 10.4%. This impressive inflow
of new assets demonstrates the high level of client confidence in Vontobel's expertise
and financial solidity. The large volume of assets gathered by Vontobel was partly offset
by negative market effects of CHF 4.6 bn, while the impact of currency fluctuations
was virtually neutral.
The strength and solidity of the Vontobel Group's capital position remain unchanged.
It reported shareholders’ equity of CHF 1.5 bn at the end of 2011. Vontobel's comfortable
capital position is reflected by its continued above-average BIS tier 1 capital
ratio of 23.3% and is also attributable to the Group's conservative risk management.
Thanks to its solid financial basis, Vontobel is well positioned to pursue its targeted
growth strategy while taking account of stricter regulatory requirements.
Profit contributions from individual business units
Pre-tax profit by segment
31-12-11 31-12-10
CHF mns CHF mns
Private Banking 33.0 48.5
Investment Banking 95.1 115.5
Asset Management 36.7 50.6
Corporate Center (17.9) (41.5)
Total 146.9 173.1
Despite the record inflow of new money, profitability in the wealth and asset management
business was below expectations. In Private Banking, clients continued to hold
large liquidity positions in view of the generally low returns on the financial markets
and high levels of volatility. Although the closing exchange rates for the US dollar and
euro at year-end 2011 were very close to the closing exchange rates at year-end 2010,
the average exchange rates that are of relevance for the Vontobel Group's income
were significantly lower in 2011 than in the previous year. This is reflected by the
earnings situation of the wealth and asset management business. In Asset Management
which is significantly exposed to currency effects, there was a strengthening of
the trend towards the institutional business, which is characterized by low margins.

Private Banking and Asset Management collectively accounted for CHF 69.7 mn of
the Group’s pre-tax profit of CHF 146.9 mn. The development of profits in Investment
Banking was also affected by low levels of market activity. In addition, the declining
creditworthiness of borrowers led to negative changes in value in the balance sheet
that amounted to tens of millions of Swiss francs. In 2011, the business unit contributed
CHF 95.1 mn of the Group's pre-tax profit. The Corporate Center result
improved due to higher net interest income and the proceeds from the sale of a
commercial property in Geneva.
Assets under management
31-12-11 31-12-10
CHF bns CHF bns
Assets under management 82.2 78.6
Custody assets 41.7 40.4
Structured products outstanding 7.7 9.3
Total client assets 131.6 128.3
At the end of 2011, the Vontobel Group held total client assets of CHF 131.6 bn, an
increase of 3% compared to the previous year. Assets under management rose by 5%
to CHF 82.2 bn. This CHF 3.6 bn increase reflects the record growth in net new
money of CHF 8.2 bn, the neutral impact of currency fluctuations viewed over the
year as a whole, and net negative market effects of CHF 4.6 bn. Custody assets of
CHF 41.7 bn (+3%) include the portfolios of Raiffeisen Switzerland, for which the
Vontobel Group provides custody services as part of a long-term cooperation agreement.
The volume of structured products outstanding declined by 17% to CHF 7.7
bn compared to the previous year, reflecting the general mood of caution among
investors and their resulting preference for liquidity.
Pleasing inflow of assets
Both the institutional business and the private clients business attracted significantly
higher inflows of new money in 2011 compared to the previous year, with substantial
contributions from the focus markets of the US and the emerging markets in particular.
The inflows in Private Banking stemmed primarily from Central and Eastern
Europe, German-speaking Europe and the SEC-regulated business with US private
clients.
Development of net new money
31-12-11 31-12-10
CHF bns CHF bns
Private clients 1.8 1.5
Private Banking 1.4 1.2
External asset managers 0.4 0.3
Institutional clients 6.3 4.0
Asset management / mandates 6.8 2.8
Asset management / investment funds (0.5) 0.9
Investment Banking 0.0 0.3
Total net new money1 8.2 5.5
1 After adjustment of double counts
Review of business activities
2007
2007
2008
Group net profit (CHF mns)
2009
2010
2011
300
250
200
150
100
50
Shareholders’ equity (CHF bns)
2008
2009
2010
2011
Vontobel Group, Annual Reports 2011 27
0
1.5
1.0
0.5
0

Review of business activities
Net operating income (CHF mns) The continued lack of optimism among private investors is reflected by the very high
proportion of liquid assets, in line with the previous year. The shift from Swiss equi-
1,000
ties and bonds to foreign equities is primarily attributable to the marked inflows into
the successful, internationally-oriented Contemporary Value products offered by
Vontobel Asset Management.
800
600
400
200
0
Headcount (full time equivalents)
1,400
1,200
1,000
800
600
400
200
0
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
28 Vontobel Group, Annual Reports 2011
Assets under management by investment category
31-12-11 31-12-10
in % in %
Swiss equities 11 17
Foreign equities 35 28
Bonds 29 31
Alternative investments 4 6
Liquid assets, fiduciary investments 15 14
Other1 6 4
1 Including structured products
Assets under management by currency
31-12-11 31-12-10
in % in %
CHF 33 36
EUR 24 26
USD 23 21
Other 20 17
Currency effects had a significant impact on the asset base up to and including in the
third quarter of 2011. However, the exchange rate situation eased in September 2011
after the Swiss National Bank (SNB) announced that it would defend a minimum
EUR/CHF exchange rate of CHF 1.20. The increasing proportion of assets in US
dollars and other currencies reflects strong inflows of new money and the good relative
performance of US dollar investments and emerging market investments.
Environment undermines profitability – declines partly offset by cost reductions
The Vontobel Group's strategy, which targets the focused expansion of the business
in growth markets, produced encouraging results in the year under review – particularly
in terms of the development of new money. However, the challenging market
environment affected the performance of the business despite the cost reduction
measures that had been initiated at an early stage.
Against this backdrop, operating income decreased by 8% to CHF 765.7 mn. Net fee
and commission income declined less rapidly (–5%) to CHF 452.2 mn and remained
by far the most important income component at Vontobel, accounting for 59% of
operating income. While brokerage fees and custody fees declined by 8% and 10%,
respectively, advisory and management fees remained in line with the previous year.
In contrast, net interest income rose by 13% to CHF 60.2 mn as a result of a further
significant increase in client deposits during the year as well as the active management
of liquidity. Trading income totalled CHF 225.3 mn, a decrease of 18% compared
to the previous year. This component includes the issuing, hedging and secondary
trading of structured products and derivatives, as well as foreign exchange

trading. Here, the Financial Products division was able to defend its strong market
position in Switzerland and Germany, even if the demand for structured products
declined noticeably towards the end of 2011. In addition, valuation effects on the
asset and liability side had a significant negative net impact of CHF 24 mn on trading
income due to the renewed rise in risk premiums in Europe. The sale of a commercial
property in Geneva contributed CHF 21.6 mn to other income.
Structure of the income
statement
31-12-11 31-12-11 31-12-10 31-12-10
CHF mns in % 1 CHF mns in % 1
Net interest income 60.2 8 53.1 6
Fee and commission income 452.2 59 478.2 58
Trading income 225.3 29 273.9 33
Other income 28.0 4 25.0 3
Total operating income 765.7 100 830.2 100
Personnel expense 373.1 49 392.3 47
General expense 178.9 23 196.2 24
Depreciation, amortization
Valuation adjustments, provisions
60.2 8 61.8 7
and losses 6.6 1 6.8 1
Operating expense 618.8 81 657.1 79
Taxes 33.1 4 25.8 3
Group net profit 113.8 15 147.3 18
1 Share of operating income
Expansion of the international business
The currency composition of the Vontobel Group's income is growing more diversified,
reflecting the increasingly international nature of its business activities. In 2011,
around 43% of the Group's operating income was generated in foreign currencies.
During the year under review, the value of the euro decreased by an average of 11%
against the Swiss franc and the value of the US dollar fell by an average of 15%.
These currency trends reduced Vontobel's level of income by CHF 46 mn. At the
same time, the impact on the cost base was only CHF 15 mn, since 81% of costs are
incurred in Swiss francs. As a result of this effect, the cost reduction measures rapidly
implemented by Vontobel in 2011 were unable to fully offset the decline in income.
Operating expense fell by 6% to CHF 618.8 mn in 2011. Personnel expense
decreased by 5% to CHF 373.1 mn and general expense declined by 9% to
CHF 178.9 mn compared to the previous year. At the end of 2011, the Vontobel
Group had 1,413 employees (FTEs), an increase of 5% from the end of 2010. Depreciation
declined marginally to CHF 60.2 mn (–3%), as planned. The tax rate increased
from 14.9% to 22.5% due to a shift in profit contributions within the Group and a
tax expense in the amount of CHF –5.9 mn unrelated to the accounting period.
Review of business activities
Vontobel Group, Annual Reports 2011 29

Review of business activities
30 Vontobel Group, Annual Reports 2011
Capital expenditure and depreciation of property,
equipment and intangible assets
31-12-11
CHF mns
31-12-10
CHF mns
Capital expenditure 55.3 41.0
Depreciation 60.2 61.8
The cost/income ratio was temporarily affected by the refocusing of Vontobel's
activities on the cross-border model as well as by the measures to expand the business.
As a result, it rose from 78.3% to 80.0%. Vontobel Group aims to achieve a
cost/income ratio of less than 75% by 2014. The corresponding structural measures
are currently being prepared and will be executed over the coming months.
Continued conservative risk policy
The creditworthiness of individual European states deteriorated increasingly in 2011.
Thanks to its prudent risk management, the Vontobel Group has only limited positions
in the bonds issued by these countries. At the end of 2011, unsecured credit risk
exposures and unsecured issuer risk exposures to sovereign borrowers in peripheral
Eurozone countries ('PIIGS' states) totalled CHF 164.2 mn after hedging. The risk exposure
to Greece accounted for only CHF 0.4 mn of this sum. The Vontobel Group
has no exposure to Portugal. This responsible approach to risk is also reflected by the
low average Value at Risk of the Financial Products division, which amounted to CHF
23.1 mn in the period under review.
Value at Risk (VaR) for the positions of Financial Products
Average 12 months ending 31-12-11 31-12-10
CHF mns CHF mns
Equities 1.2 1.1
Interest rates 22.5 17.9
Currencies (0.9) 0.4
Commodities 0.3 0.3
Total 23.1 19.7
Average Value at Risk 12 months for positions in the Financial Products division of the Investment Banking
business unit. Historical simulation Value at Risk; 99% confidence level; 1-day holding period; last 4 years
historical observation period.
Solid capital position – even in view of stricter future regulations
With an equity ratio of 8.0% and a BIS tier 1 capital ratio of 23.3%, the Vontobel
Group's capital position remains solid – providing it with a sustainable basis to ensure
its future competitiveness as an independent Swiss financial institution. Shareholders'
equity was unchanged at CHF 1.5 bn. The return on equity was 7.5%, compared
to 9.8% in 2010.
Total assets grew by 2% to CHF 18.7 bn compared to the end of 2010, reflecting the
continued client preference for liquid assets. At the end of 2011, client deposits totalled
CHF 7.5 bn, an increase of 53% compared to the previous year. However, the
decline in demand for structured products and derivatives slowed the growth in

Vontobel Gorup's balance sheet. The liabilities resulting from this business totalled
CHF 7.7 bn, compared to CHF 9.3 bn in the previous year.
Of the total regulatory capital of CHF 664.1 mn (31-12-10: CHF 625.1 mn) required
under BIS rules, 50% was allocated to Investment Banking.
Allocation of regulatory
capital required
Operational Goodwill
Credit risks Market risks risks
etc. Total
CHF mns CHF mns CHF mns CHF mns CHF mns
Private Banking 22.1 0.0 34.9 74.5 131.5
Investment Banking 22.3 135.3 49.5 125.9 333.0
Asset Management 5.0 0.0 29.7 66.1 100.8
Corporate Center 40.3 53.5 5.0 0.0 98.8
Total 89.7 188.8 119.1 266.5 664.1
The two rating agencies Standard & Poor’s and Moody’s continue to rate the longterm
debt of Bank Vontobel AG as A+ and A1, respectively. They assigned Vontobel
Holding AG a rating of A and A2, respectively. These ratings confirm the recognized
financial strength and solidity of the Vontobel Group.
Strong growth in the emerging markets
In the year under review, Vontobel has made impressive progress in its growth
markets of the US and the emerging markets recording strong inflows of new money.
Client assets from these regions now total over CHF 20 bn, compared to CHF 14 bn
at the end of 2010, corresponding to an excellent growth rate of 43%. This shows
that the Vontobel Group is succeeding in establishing a foothold in dynamic growth
markets and in tapping into new sources of earnings.
Client assets by client domicile at 31 December 2011
Home
market Focus markets
Review of business activities
Other
markets Total
CHF bns Switzerland Germany Italy US
Emerging
Markets
Assets under management 36.7 6.9 2.7 10.7 9.5 15.7 82.2
Custody assets 40.6 0.2 0.3 – – 0.6 41.7
Structured products outstanding 7.0 0.7 – – – – 7.7
Total client assets 84.3 7.8 3.0 10.7 9.5 16.3 131.6
Vontobel Group, Annual Reports 2011 31

Review of business activities
32 Vontobel Group, Annual Reports 2011
Ambitious mid-term Group targets
The Vontobel Group’s independence – which is underpinned by its stable family
shareholder base – and its strong capital position form the cornerstones of its strategy
and are more important than ever before. The integrated business model – which
combines the Private Banking, Investment Banking and Asset Management business
units and is founded on Vontobel’s core competencies in wealth and asset management
and the products business – provides a platform for balanced value creation at
Group level. Vontobel’s targeted growth strategy, which is based on a combination
of organic expansion, cooperation agreements and acquisitions, ensures that it has
the critical size to remain competitive even if the current challenging environment
persists. Its strategic direction is based on its unique and coherent combination of
expertise in the areas of advisory, active investing, payoff structuring and specific
services for its business partners (B2B4C), as well as governance. The Vontobel Group
is committed to achieving its mid-term targets: it wants to organically grow its operating
income to over CHF 1 bn and to increase its volume of client assets to over CHF
175 bn by 2014. In terms of operating efficiency, Vontobel aims to generate a cost/
income ratio of less than 75%. At the same time, it wants to produce a sustainable
return on equity of over 10%.
Targets 2014
Operating income > CHF 1 bn
Client assets > CHF 175 bn
Cost/income ratio < 75%
Return on equity (ROE) > 10%

Private Banking
34 Vontobel Group, Annual Reports 2011
The paradigm shift in the finance industry – especially in the Swiss private banking sector
– is a growing sign that the long anticipated market consolidation is underway.
Established banks are being sold and/or merged with larger institutions. Clients are
seeking a new financial partner that can offer a reliable and sustainable banking relationship.
The Vontobel brand symbolizes a future-oriented Swiss private bank with a
high level of advisory expertise and proven products. These qualities are also confirmed
by the undiminished inflow of new assets recorded during the last financial year. An
important factor distinguishing Vontobel Private Banking from its peers is its advisory
process. This confirms that the launch of the new “premium” and “expert” advisory
mandates in mid-2011 attracted a high level of client interest. Based on analyses of individual
client requirements, the advisory services available within the integrated bank are
modelled in a needs-oriented and fairly priced manner. As a result, Advisory@Vontobel
earned the title of “Best Wealth Management Advisory in Switzerland 2011”. In addition,
Vontobel Private Banking received the award for “Best Global Private Banking” in
2011 from the Financial Times.
At the end of 2011, Vontobel Private Banking reported assets under management of
CHF 28.5 bn. Despite the uncertain regulatory environment, it acquired CHF 1.44 bn
(+24%) of new assets, mainly reflecting inflows from the focus markets of Switzerland,
Germany and Central and Eastern Europe. Weak stock market conditions and adverse
foreign exchange impacts slowed the growth in assets under management: the negative
effects of market performance and foreign exchange trends totalled CHF 2.2 bn and
CHF 0.3 bn, respectively.
Vontobel Private Banking was not immune to the effects of the continued lethargy in
the global financial and equity markets as well as the constantly changing regulatory
conditions. As a result, operating income declined by 5% to CHF 236.4 mn. At the same
time, operating expense rose marginally (+2%) to CHF 203.4 mn, thus directly impacting
operating efficiency. As a result, pre-tax profit declined by 32% to CHF 33.0 mn. At
82 basis points, the gross margin was almost in line with the previous year.
Profitability and efficiency were still below the mid-term targets in the financial year
2011. Against this backdrop, Vontobel Private Banking will continue to implement measures
to sharpen its market focus and to control costs.
Vontobel Private Banking advises and supports wealthy clients based on a holistic and
customized approach that spans the entire range of financial and wealth management
services with a focus on comprehensive solutions. Its offering encompasses a wide
variety of services – from portfolio management and active investment advisory to
integrated financial advice and inheritance planning. Thanks to Vontobel's integrated
business model, private clients also benefit from access to its proven expertise in the
areas of Asset Management and Investment Banking. The relationship managers in
Private Banking focus on security and the sustained enhancement of value in every
aspect of their work. Vontobel Private Banking has employees in Zurich, Basel, Berne,
Geneva, Lucerne, Vaduz, Salzburg, Vienna, Munich, Hamburg, Frankfurt, Cologne,
Milan, Dubai and Hong Kong.

Segment results
Private Banking
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net interest income 27.3 26.6 0.7 3
Other operating income 209.1 221.9 (12.8) (6)
Operating income 236.4 248.5 (12.1) (5)
Personnel expense 90.0 90.1 (0.1) (0)
General expense 19.2 20.3 (1.1) (5)
Services from/to other segment(s) 86.5 78.7 7.8 10
Depreciation of property, equipment and intangible assets 2.8 2.8 0.0 0
Value adjustments, provisions and losses 4.9 8.1 (3.2) (40)
Operating expense 203.4 200.0 3.4 2
Segment profit before taxes 33.0 48.5 (15.5) (32)
Key figures
Cost1 /income ratio (%) 84.0 77.2
Change of assets under management (%) (3.7) (1.0)
of which net new money (%) 4.7 4.0
of which change in market value (%) (8.4) (5.0)
Operating income/average assets under management (bp) 2 82 83
Profit before taxes/average assets under management (bp) 2 11 16
Client assets
31-12-11 31-12-10 Change to 31-12-10
CHF bns CHF bns CHF bns in %
Assets under management3 28.5 29.6 (1.1) (4)
Average assets under management2 28.9 30.0 (1.1) (4)
Net new money
31-12-11 31-12-10
CHF bns CHF bns
Net new money 1.4 1.2
Personnel
Change to 31-12-10
31-12-11 31-12-10 in %
Employees (full-time equivalents) 398.4 347.7 50.7 15
of which relationship managers 203.5 183.3 20.2 11
1 Operating expense excl. value adjustments, provisions and losses
2 Calculation based on average values for individual months
3 Calculation in accordance with Table Q of the guidelines issued by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions and Vontobel Group internal guidelines
Vontobel Group, Annual Reports 2011 35

Investment Banking
36 Vontobel Group, Annual Reports 2011
After an encouraging start to the year, volumes on the Swiss equity and derivatives markets
declined sharply from the third quarter onwards – a trend that was accompanied by
high levels of market volatility. During the same period, the escalating debt crisis in Europe
led to significantly higher risk premiums. These factors impacted the financial results
of Vontobel Investment Banking. Operating income decreased by 14% to CHF
285.6 mn in 2011. Financial Products accounted for around 74% of the business unit's
operating income, while Brokerage and the business with external asset managers contributed
11% and 9%, respectively. Operating expense fell by 12% to CHF 190.5 mn.
This resulted in a cost/income ratio of 66.6%, compared to 65.0% in the previous year.
Pre-tax profit declined by 18% to CHF 95.1 mn. The volume of assets under management
was almost in line with the previous year's level. In view of the subdued demand –
particularly in the second half of 2011 – the volume of structured products outstanding
fell by 17% to CHF 7.7 bn compared to the previous year.
Structured products have been an established asset class in Switzerland for several years
and now form an integral part of the portfolios of private and institutional investors.
With a market share on Scoach Switzerland of 19%, Vontobel Financial Products is one
of the top three providers of listed structured products and derivatives. During the year,
Vontobel saw the increasing migration of volumes from the conventional exchange to its
own innovative deritrade® platform. The long-running success of Vontobel Financial
Products is attributable to its continuous market presence – even in difficult periods –
and the high-quality information it provides for investors. A recent review conducted by
the Swiss Financial Market Supervisory Authority FINMA to assess the transparency of
sales documentation for structured products and the ease with which it can be understood
found that Vontobel's prospectuses are fully compliant with regulatory requirements.
The new structured products with reference bonds issued by Vontobel generated
a high level of demand. Vontobel Financial Products achieved continued success in the
German market, where it is one of the top 10 providers. In the next phase after launching
its sales platform in Dubai in spring 2012, Vontobel Financial Products is planning to
establish a presence in Singapore in order to target the Asian market. Vontobel Brokerage
was once again named the “Leading Brokerage Firm in Switzerland” by the
renowned ranking agency Extel Thomson. In Transaction Banking, Vontobel succeeded
in acquiring an internationally active Swiss private banking group as a client for exclusive
market-side securities settlement during the year under review.
Vontobel Investment Banking focuses on products and services that complement Vontobel's
wealth and asset management offering – particularly for institutional clients and
business partners (B2B4C). Prudent risk management is of critical importance in this
context. Vontobel Financial Products is one of the leading issuers of derivatives and
structured products in Switzerland and Germany. In addition to the Brokerage division,
which has received a number of international awards, Vontobel is active in the field of
Corporate Finance and offers comprehensive services to external asset managers. Securities
and foreign exchange trading, as well as the securities services provided in the
area of Transaction Banking, complete the broad range of offerings for clients. Investment
Banking has operations in Zurich, Geneva, Cologne, Frankfurt, Munich, Dubai,
London and New York.

Segment results
Investment Banking
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net interest income 11.6 10.8 0.8 7
Other operating income 274.0 320.9 (46.9) (15)
Operating income 285.6 331.7 (46.1) (14)
Personnel expense 93.5 103.6 (10.1) (10)
General expense 44.0 48.0 (4.0) (8)
Services from/to other segment(s) 50.6 61.4 (10.8) (18)
Depreciation of property, equipment and intangible assets 2.1 2.6 (0.5) (19)
Value adjustments, provisions and losses 0.3 0.6 (0.3) (50)
Operating expense 190.5 216.2 (25.7) (12)
Segment profit before taxes 95.1 115.5 (20.4) (18)
Key figures
Cost 1 /income ratio (%) 66.6 65.0
Client assets
31-12-11 31-12-10 Change to 31-12-10
CHF bns CHF bns CHF bns in %
Assets under management2 7.9 3 8.2 (0.3) (4)
of which external asset managers 3.7 3 3.7 0.0 0
Custody assets 41.7 40.4 1.3 3
Structured products outstanding 7.7 9.3 (1.6) (17)
Total client assets 57.3 57.9 (0.6) (1)
Net new money
31-12-11 31-12-10
CHF bns CHF bns
Net new money 0.4 0.6
of which external asset managers 0.4 0.3
Personnel
31-12-11 31-12-10
Change to 31-12-10
Employees (full-time equivalents) 334.8 341.6 (6.8) (2)
1 Operating expense excl. value adjustments, provisions and losses
2 Calculation in accordance with Table Q of the guidelines issued by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions and Vontobel Group internal guidelines
3 The disposal of the majority stake in VT Wealth Management AG led to a CHF 0.3 bn reduction in assets under management.
Vontobel Group, Annual Reports 2011 37

Asset Management
38 Vontobel Group, Annual Reports 2011
From an investment perspective, 2011 was characterized by a high level of uncertainty
due to the European debt crisis, volatile markets and low interest rates.
Despite these adverse conditions, Vontobel Asset Management's products achieved
a pleasing performance. The multi-boutique approach proved successful. Products
from the Contemporary Value line in particular generated above-average results.
Morningstar, a leading provider of independent investment analyses, awarded the
two Vontobel funds Global Value and Emerging Markets Equity top rankings in view
of their excellent outperformance relative to the benchmark over 1, 3 and 5 years.
Above-average returns were also generated in Fixed Income. Vontobel's considerable
expertise in this area was recognized by the European rating agency Feri Euro-
Rating Services AG, which named Vontobel the “Best Asset Manager for Bond Funds
in Switzerland” at the end of November 2011.
Vontobel Asset Management was able to benefit from its high level of investment
expertise and the realignment of its sales and relationship management teams
during the year under review. The business unit acquired net new money of CHF 6.3
bn, contributing 15.4% of growth in assets under management. This demonstrates
the stable growth path being pursued by Vontobel Asset Management. Strong
inflows were mainly generated from institutional investors, which tend to invest
strategically rather than cyclically. In the US alone, Vontobel Asset Management
booked CHF 2.7 bn of new mandates. However, a considerable volume of client
assets was also acquired in the Middle East (CHF 2.6 bn) and Asia (CHF 0.3 bn). The
Contemporary Value products managed in New York now have USD 20 bn of assets
under management.
The trend towards mandates, as well as unfavourable foreign exchange impacts, had
a negative effect on operating income, which declined by 6% to CHF 202.1 mn.
Performance fees accounted for CHF 1.5 mn of operating income in 2011 (2010:
CHF 8.2 mn). At CHF 165.4 mn, operating expense was almost in line with the previous
year. The cost/income ratio rose to 81.4%. Pre-tax profit decreased by 27% to
CHF 36.7 mn and the gross margin fell by 6 basis points to 46 basis points.
Vontobel Asset Management specializes in active asset management and is positioned
as a multi-boutique provider with the following areas of focus: “Contemporary
Value”, “Alternative Investments” (Harcourt), “Global Change Investing”,
“Fixed Income”, “Swiss Equities”, “Absolute Return” and “Multi Asset Class”. Each
boutique is run as an independent centre of expertise. Vontobel Asset Management
has three core competencies: targeted asset allocation, stock selection and
multi-manager approaches. It distributes its products via wholesale channels, directly
to institutional clients and through its cooperation partners. The Vontobel
Group has a longstanding and successful cooperation agreement with Raiffeisen
Switzerland under which it provides Raiffeisen clients with a broad range of investment
services. The Asset Management business unit has a presence in Zurich,
Berne, Geneva, New York, Frankfurt, Vienna, Luxembourg, Milan, Madrid, Stockholm,
Hong Kong and Grand Cayman.

Segment results
Asset Management
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net interest income 0.7 0.5 0.2 40
Other operating income 201.4 213.8 (12.4) (6)
Operating income 202.1 214.3 (12.2) (6)
Personnel expense 94.4 96.2 (1.8) (2)
General expense 23.6 22.9 0.7 3
Services from/to other segment(s) 39.9 37.6 2.3 6
Depreciation of property, equipment and intangible assets 6.7 8.4 (1.7) (20)
Value adjustments, provisions and losses 0.8 (1.4) 2.2
Operating expense 165.4 163.7 1.7 1
Segment profit before taxes 36.7 50.6 (13.9) (27)
Key figures
Cost1 /income ratio (%) 81.4 77.0
Change of assets under management (%) 2 12.3 9.4
of which net new money (%) 2 15.4 9.9
of which change in market value (%) 2 (3.1) (0.5)
Operating income/average assets under management (bp) 3 46 52
Profit before taxes/average assets under management (bp) 3 8 12
Client assets
31-12-11 31-12-10 Change to 31-12-10
CHF bns CHF bns CHF bns in %
Assets under management4 47.2 42.5 4.7 11
of which Vontobel funds 9.9 10.4 (0.5) (5)
of which private label funds 8.3 9.5 (1.2) (13)
of which managed on behalf of other segments 1.4 1.7 (0.3) (18)
Average assets under management3 43.5 41.5 2.0 5
Net new money
31-12-11 31-12-10
CHF bns CHF bns
Net new money 6.3 3.7
Personnel
31-12-11 31-12-10
Change to 31-12-10
Employees (full-time equivalents) 280.5 281.0 (0.5) (0)
1 Operating expense excl. value adjustments, provisions and losses
2 Adjusted for assets that are managed on behalf of other segments.
3 Calculation based on average values for individual months
4 Calculation in accordance with Table Q of the guidelines issued by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions and Vontobel Group internal guidelines
Vontobel Group, Annual Reports 2011 39

Corporate Center
40 Vontobel Group, Annual Reports 2011
In view of the mounting legislative and regulatory requirements relating to business
processes and structures in the finance industry and the resulting increase in
complexity from a legal perspective, the Vontobel Group's Legal and Compliance divisions
and Tax unit were combined within the Finance & Risk support unit at the
start of 2012 and a General Counsel was appointed to oversee these areas. Responsibility
for this newly created position was assigned to Dr Martin Taufer, a lawyer
with wide-ranging experience and expertise.
The provision of client-friendly business premises and needs-oriented workplaces is
an important factor determining the success of the Vontobel Group's core business
activities. A prime example is the company's head office at Gotthardstrasse in Zurich,
which features a light and open design. To promote a uniform corporate image,
Vontobel decided to move its Geneva offices from their current location at Place de
l'Université 6, which is in need of extensive renovation, to new premises in the centre
of the city. The office building owned by the Vontobel Group was sold at the end of
2011 in line with the company's strategy of leasing rather than owning its business
premises.
The Corporate Center recorded a 17% increase in operating income to CHF 41.6 mn
in 2011, reflecting a 36% rise in net interest income as well as the proceeds from the
sale of the property in Geneva in the amount of CHF 21.6 mn. At the same time,
operating expense decreased by 23% to CHF 59.5 mn as a result of greater cost
discipline. This led to a CHF 23.6 mn improvement in the Corporate Center result to
CHF –17.9 mn.
The Corporate Center of the Vontobel Group comprises the support units Operations,
Finance & Risk and Group Services. The Operations unit is divided into IT,
Facility Management & Services and Operations & Information Risk. The Finance &
Risk unit combines the areas of Finance & Controlling, Treasury, Risk Control, Legal,
Compliance & Tax and Investor Relations. Group Services encompasses the areas of
Human Resources, Group Communications and Corporate Business Development.
The Board of Directors Support unit assists the Board with all administrative and
legal matters.

Segment results
Corporate Center
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net interest income 20.6 15.2 5.4 36
Other operating income 21.0 20.5 0.5 2
Operating income 41.6 35.7 5.9 17
Personnel expense 95.2 102.4 (7.2) (7)
General expense 92.1 105.0 (12.9) (12)
Services from/to other segment(s) (177.0) (177.7) 0.7
Depreciation of property, equipment and intangible assets 48.6 48.0 0.6 1
Value adjustments, provisions and losses 0.6 (0.5) 1.1
Operating expense 59.5 77.2 (17.7) (23)
Segment profit before taxes (17.9) (41.5) 23.6
Personnel
Change to 31-12-10
31-12-11 31-12-10 in %
Employees (full-time equivalents) 399.7 375.8 23.9 6
Vontobel Group, Annual Reports 2011 41

Information relating to Corporate Governance
1. Group structure and shareholders 44
2. Capital structure 48
3. Board of Directors 49
4. Group Executive Management 58
5. Compensation, shareholdings and loans 62
6. Shareholders’ participatory rights 64
7. Changes of control and defence measures 66
8. Statutory auditor/Group auditor 67
9. Information policy 68
Vontobel Group, Annual Reports 2011 43

Information relating to Corporate Governance
1. Group structure and shareholders
44 Vontobel Group, Annual Reports 2011
The Vontobel Group is committed to pursuing a responsible, value-oriented approach
to corporate management and control. It considers good corporate governance to be
a vital success factor and an essential prerequisite for the achievement of strategic
corporate goals and the creation of lasting value for shareholders and all other stakeholders.
Key elements of our corporate governance are: a clearly defined, wellbalanced
distribution of powers between the Board of Directors and the Group Executive
Management, the protection and promotion of shareholders’ interests, and a
transparent information policy. The Articles of Association of Vontobel Holding AG,
the Organizational Regulations of Vontobel Holding AG and the Minutes of the General
Meeting of Shareholders of Vontobel Holding AG are available on the Internet
(www.vontobel.com > Vontobel Group > Investor & Media Relations > Annual General
Meeting).
The SIX Swiss Exchange AG issued a “Directive on Information relating to Corporate
Governance”, which entered into effect on 1 July 2002. The following information
meets the requirements of this directive and takes account of the SIX commentary
last updated on 20 September 2007. If information required by this directive is published
in the Notes to the financial statements, a reference indicating the corresponding
section of the notes is given.
1.1 Structure of the Vontobel Group as of 31 December 2011
Private
Banking
Peter
Fanconi
Investment
Banking
Roger
Studer
Board of Directors
Chairman: Herbert J. Scheidt
Chief Executive Officer
Dr Zeno Staub
Asset
Management
Axel
Schwarzer
Finance &
Risk
Dr Martin Sieg
Castagnola
Operations
Felix
Lenhard
Group companies that are to be consolidated (scope of consolidation) are listed in the
Notes to the consolidated financial statements on page 168 together with details of
the company name, registered office, share capital, stock exchange listing and the
interest held by the Group.

1.2 Major shareholders and groups of shareholders with pooled voting rights
Information relating to Corporate Governance
31-12-11 31-12-10
Nominal Share Nominal Share
CHF mns in % CHF mns in %
With voting rights on share capital of CHF 65 mn of Vontobel Holding AG
Dr Hans Vontobel 11.8 18.1 11.8 18.1
Ruth de la Cour-Vontobel 3.6 5.5 3.6 5.5
Vontrust AG (Holding of the Vontobel family shareholders) 8.1 12.5 8.1 12.5
Other shares of family shareholders 0.3 0.5 0.3 0.5
Vontobel Foundation 7.1 10.9 7.1 10.9
Pellegrinus Holding AG (public utility foundation Corvus) 1 2.7 4.2 2.7 4.2
Vontobel Holding AG including subsidiaries (own shares without voting rights) 2 1.6 2.5 1.5 2.3
Executive members 0.5 0.8 0.6 0.9
Raiffeisen Switzerland 8.1 12.5 8.1 12.5
Total voting rights on share capital 43.8 67.4 43.8 67.4
of which members of the pool (with and without voting rights) 35.6 54.8 35.7 54.9
of which members of the pool (with voting rights) 34.0 52.4 34.2 52.6
of which pooled shares 26.0 40.0 26.0 40.0
1 Usufruct including voting right by Pellegrinus Holding AG, ownership by Vontobel Foundation
2 Excluding option rights amounting to 0.0% (previous year 0.1%) of shares outstanding
On 21 February 2011, the Disclosure Office of the SIX Swiss Exchange AG granted
Vontobel Holding AG’s request for the extension of the easing of the reporting and
disclosure requirement (“corridor solution”) in accordance with the Stock Exchange
Act. Until 30 September 2012, the shareholding of the group of shareholders of Vontobel
Holding AG that is subject to a reporting requirement (tied and free shares) can
therefore fluctuate between 64.5% and 69.0% without leading to a disclosure report
by the aforementioned group of shareholders or a public disclosure by Vontobel
Holding AG upon it reaching, exceeding or falling below the threshold of 662 /3%.
Edwin Schildknecht, Ruschlikon, withdrew from the shareholder pooling agreement
on 9 May 2011. Furthermore, no disclosure notifications as defined in Article 20 of
the Stock Exchange Act or other notifications of significant changes in shareholder
structure were published during the year under review.
Shareholder pooling agreement
The major shareholders (Dr Hans Vontobel, Ruth de la Cour-Vontobel, Vontrust AG,
other shares of family shareholders, Vontobel Foundation, Pellegrinus Holding AG,
Vontobel Holding AG and executive members) are parties to a pooling agreement.
This agreement encompasses specific Vontobel Holding AG shares held by these
shareholders. As of 31 December 2011, 40% of all shares issued are bound by the
pooling agreement. The members of the pool can freely dispose of any shares not specifically
mentioned in the pooling agreement. Any sale of pooled Vontobel Holding
AG shares requires prior approval by the pool members. If the members approve the
intended sale, the pool member wanting to sell shares must first offer his or her shares
to the other pool members for purchase. The other pool members have pre-emptive
rights of purchase in proportion to each member’s pooled interest. If a pool member
Vontobel Group, Annual Reports 2011 45

Information relating to Corporate Governance
46 Vontobel Group, Annual Reports 2011
declines to exercise or transfer all or part of his or her rights of purchase, the unexercised
rights will be allocated among the remaining pool members willing to exercise said
rights, in proportion to each member’s respective interests. The rules governing the sale
of pooled shares held by executive members differ in that Vontobel Holding AG has preemptive
rights to purchase their shares. The parties to the shareholder pooling agreement
exercise their rights at the General Meeting of Shareholders uniformly in accordance
with the prior resolutions passed by the pool. The shareholder pooling agreement
is valid until 31 December 2017. It will be renewed automatically for three years at a
time, provided notice to terminate the agreement is not given beforehand.
Registered shareholders
as at 31-12-11
Number of
shareholders in %
Number of
shares in %
Natural persons 7,101 95.2 25,306,156 38.9
Legal persons 360 4.8 30,829,872 47.5
Unregistered shares – – 8,863,972 13.6
Total 7,461 100.0 65,000,000 100.0
Shareholding of Raiffeisen Switzerland related to long-term cooperation agreement
In connection with the long-term cooperation between Vontobel Holding AG and
Raiffeisen Switzerland, Raiffeisen Switzerland and the members of the aforementioned
shareholder pooling agreement (including Vontobel Holding AG) signed an agreement
on 7 June 2004 governing the shareholding in Vontobel Holding AG acquired by
Raiffeisen Switzerland (the “participation agreement”). Under the participation agreement,
several pool members – particularly Vontobel Holding AG – sold 12.5% of outstanding
Vontobel Holding AG shares to Raiffeisen Switzerland for total consideration
of CHF 225 mn. The price per share was based on the volume-weighted average price
paid for Vontobel shares during the 60 trading days prior to 17 May 2004, the reference
date set by the parties to the agreement. After the signing of the cooperation
agreements, the purchase transaction was conducted by Raiffeisen Switzerland and
Vontobel Holding AG on 8 December 2004. Raiffeisen Switzerland has undertaken not
to purchase any Vontobel Holding AG shares – in particular free float shares – prior to
the termination of the participation agreement. This restriction does not apply to the
purchase of shares by Raiffeisen Switzerland from pool members in accordance with
the purchase rights defined in the participation agreement. On 14 December 2009,
the existing cooperation agreement was extended until at least the end of June 2017.
The parties essentially granted each other the following rights of purchase: If the cooperation
is terminated by Raiffeisen Switzerland or with mutual consent, the selling
pool members have the pre-emptive right to repurchase the interest acquired by
Raiffeisen Switzerland. If the cooperation is terminated by Vontobel Holding AG
(further details on the duration of the agreement and the terms and conditions of
termination are given in the Notes to the consolidated financial statements, note 41),
Raiffeisen Switzerland has the right to sell its interest back to Vontobel Holding AG in
two tranches in the first and fourth year after termination of the cooperation. If
Raiffeisen Switzerland does not exercise this right of sale, the pool members have the
right to repurchase the shares in two tranches in the second and fifth year after
terminaton of the cooperation. The selling pool members and Raiffeisen Switzerland

have additionally granted each other mutual pre-emptive rights of purchase in the
event that Raiffeisen Switzerland sells its interest to a third party or the pool members
sell shares bound by the pooling agreement to a third party prior to the termination
of the cooperation agreement. In all of the above cases, the prevailing market
price shall apply, based on the 60-day, volume-weighted average share price.
Furthermore, in the event that the pool members plan to sell a controlling stake to a
third party that would give said party control over more than 331 /3% of the voting
rights of Vontobel Holding AG, the pool members must offer Raiffeisen Switzerland
the corresponding number of shares for purchase prior to executing the aforementioned
transaction. In this case, the prevailing market price at the time plus an appropriate
control premium will apply. The pre-emptive rights of purchase and the
requirement to tender shares for purchase shall not apply in the event that a public
takeover bid is issued by a third party. Provided Raiffeisen Switzerland does not issue
at least an equivalent public takeover bid of its own, the pool members will decide at
their sole discretion whether to accept or refuse the third-party takeover bid.
Raiffeisen Switzerland has the right to propose a candidate for election to the Board
of Directors of Vontobel Holding AG throughout the duration of the cooperation.
The pool members are required to cast all of the voting rights stemming from their
shareholdings in favour of this representative. In reciprocation, Vontobel Holding AG
has the right to attend the meetings of the Board of Directors of Raiffeisen Switzerland.
Apart from these provisions, the participation agreement contains no voting
rights commitments between the pool members and Raiffeisen Switzerland, nor has
Raiffeisen Switzerland been granted any veto rights. In particular, the pool members
are free to exercise the voting rights stemming from their shareholdings in accordance
with the terms and conditions of the shareholder pooling agreement by which
they are bound (see above), and no understanding or agreements have been reached
that have a bearing on the decision-making processes of the Board of Directors of
Vontobel Holding AG or on the passing of the Board’s resolutions.
The participation agreement essentially ends with the sale of all shares governed by
the pool to Raiffeisen Switzerland (if the pre-emptive rights of purchase are exercised)
or to a third party, in compliance with the provisions of all valid agreements or
with the sale of the shares owned by Raiffeisen Switzerland to the authorized pool
members (if the pre-emptive rights of repurchase are exercised) or to a third party in
compliance with the provisions of all valid agreements, or at the latest upon retransfer
of the interest acquired by Raiffeisen Switzerland to Vontobel Holding AG or to
the pool members following the termination of the cooperation.
The Swiss Takeover Board noted in a Recommendation dated 4 June 2004 that the
purchase of the interest by Raiffeisen Switzerland and the granting of the rights described
above did not trigger an obligation to issue a public takeover bid. Raiffeisen
Switzerland and the pool members do not therefore represent a group that is obligated
to issue a public takeover bid.
1.3 Cross shareholdings
No cross shareholdings exist between Vontobel Holding AG or its subsidiaries and
other corporations that exceed 5% of capital or voting rights.
Information relating to Corporate Governance
Vontobel Group, Annual Reports 2011 47

Information relating to Corporate Governance
2. Capital structure
48 Vontobel Group, Annual Reports 2011
2.1 Capital
The share capital of Vontobel Holding AG amounts to CHF 65,000,000. The registered
shares of Vontobel Holding AG (security no. 1 233 554) are listed on the SIX
Swiss Exchange and are included in the Swiss Performance Index SPI ® . Further information
on the composition of capital can be found in the Notes to the consolidated
financial statements, note 26.
2.2 Details of contingent and authorized capital
Details of contingent and authorized capital can be found in the Notes to the consolidated
financial statements, note 26.
2.3 Changes in capital
Information on the composition of capital, changes in capital during the past two
years and authorized capital is given in the Statement of equity and in the Notes to
the consolidated financial statements, note 26. For information on earlier periods,
please refer to the relevant Annual Reports (2010 see note 26 and 2009 see note 28).
2.4 Shares and participation certificates
The share capital of Vontobel Holding AG is divided into 65,000,000 fully paid in
registered shares with a par value of CHF 1.00 each. Vontobel Holding AG does not
have any participation certificates outstanding.
2.5 Profit-sharing certificates
Vontobel Holding AG does not have any profit-sharing certificates outstanding.
2.6 Restrictions on transferability and nominee registrations in the share register
This information is provided in section 6 “Shareholders’ participatory rights”.
2.7 Convertible bonds and options
There were no bonds or convertible bonds outstanding as of 31 December 2011.
Information on the options on shares of Vontobel Holding AG issued by the Vontobel
Group is provided in the Notes to the consolidated financial statements, note 26.
The volume of the entire share capital recorded for outstanding structured products
and options amounts to 14,799 shares, net (previous year: 34,764 shares). This
means that option rights issued by the Vontobel Group amounting to 0.0% (previous
year: 0.1%) of share capital were outstanding on 31 December 2011. No conditional
capital is used to hedge these option rights; they are hedged through market
transactions.

3.1 Members of the Board of Directors as of 31 December 2011:
Name Function Nationality
Information relating to Corporate Governance
Committee
membership 1 Initial election Term expires
Herbert J. Scheidt Chairman CH / D NCC 2011 2012
Bruno Basler Vice-Chairman CH NCC2 2005 2012
Prof. Dr Ann-Kristin Achleitner Member D RAC 2009 2012
Dr Philippe Cottier Member CH RAC 2009 2012
Peter Quadri Member CH NCC 2005 2012
Dr Frank Schnewlin Member CH RAC2 2009 2012
Clara C. Streit Member D / US NCC 2011 2012
Dr Pierin Vincenz Member CH 2005 2012
1 Further information on the Committees is provided below under “Internal organization”
NCC: Nomination and Compensation Committee
RAC: Risk and Audit Committee, until 31-12-11 Audit Committee (AC)
2 Chair
Resignations in 2011
Dr Urs Widmer Member until 03-05-11
Dr Wolfhard Graetz Member until 03-05-11
Dr Hans Vontobel has been Honorary Chairman of Vontobel Holding AG and Bank
Vontobel AG since 1991.
In the year under review, Herbert J. Scheidt exercised the function of Chief Executive
Officer of the Vontobel Group until 3 May 2011, when he was elected Chairman of
the Board of Directors of Vontobel Holding AG. No other member of the Board of Directors
of Vontobel Holding AG exercised any operational management functions for
the company or one of its subsidiaries in 2011. Any previous executive functions are
detailed below. The Chairman of the Board of Directors of Vontobel Holding AG,
Herbert J. Scheidt, has a seat on the Board of Directors of Helvetia Holding AG in
connection with Vontobel’s cooperation with Helvetia. Bruno Basler is Vice-Chairman
of the Board of Trustees of the Vontobel Foundation and thus represents the interests
of majority shareholders. Dr Pierin Vincenz represents Raiffeisen Switzerland
on the Board of Directors of Vontobel Holding AG. The Vontobel Group and Raiffeisen
Switzerland have a long-term cooperation agreement (see note 41). Dr Philippe
Cottier was CEO of Harcourt Investment Consulting AG, a subsidiary of Vontobel
Holding AG, until 30 June 2007. He subsequently held the position of Senior Advisor,
member of the Board of Directors and member of the Investment Committee of this
company until the end of March 2009.
As at 31 December 2011, the majority of members of the Board of Directors of Vontobel
Holding AG met the independence criteria prescribed in the FINMA Circular
08/24 “Supervision and Internal Control at Banks”. They are: Prof. Dr Ann-Kristin
Achleitner, Peter Quadri, Dr Frank Schnewlin and Clara C. Streit. Dr Philippe Cottier
has been classed as an independent member of the Board of Directors since 1 April
2011.
3. Board of Directors
Vontobel Group, Annual Reports 2011 49

Information relating to Corporate Governance
50 Vontobel Group, Annual Reports 2011
Herbert J. Scheidt, born 1951, Swiss and German citizen
Chairman of the Board of Directors since 4 May 2011
Business Manager; M.A. in Economics, University of Sussex; MBA, University of
New York
Professional background:
1982–2002 Various functions at Deutsche Bank in Germany, New York, Milan and Geneva
– 1996–2002 Head of Private Banking International in Geneva
– 2001–2002 Chief Executive Officer Deutsche Bank (Schweiz) AG
2002–2011 CEO of the Vontobel Group
Vice-Chairman of the Board of Directors of Hero AG, Lenzburg
Member of the Board of Directors of Helvetia Holding AG
Member of the Board of Directors of SIX Group, Zurich
Member of the Board of Directors of the Swiss Bankers Association, Basel
Member of the Board of the Association of Swiss Commercial and Investment Banks
(VHV)
Member of the Executive Committee of the German Council on Foreign Relations
(DGAP)
Bruno Basler, born 1963, Swiss citizen
Vice-Chairman of the Board of Directors since 4 May 2011
Degree in civil engineering from the Swiss Federal Institute of Technology (ETH);
MBA INSEAD
Chairman of the Board of Directors of Ernst Basler + Partner AG
Professional background:
1989–1991 Holinger AG
1992–1994 McKinsey & Company
Since 1994 Ernst Basler + Partner AG
– 1994–2001 Delegate and Chairman of the Board of Directors
– Since 2001 Chairman of the Board of Directors
Vice-Chairman of the Board of Trustees of the Vontobel Foundation
Member of the Board of Directors of Robert Aebi AG
Member of the Board of Directors of Baumann Federn AG

Information relating to Corporate Governance
Prof. Dr Ann-Kristin Achleitner, born 1966, German citizen
Dr. oec. and Dr. iur., University of St. Gallen; Scientific Director of the Center for
Entrepreneurial and Financial Studies (CEFS) at the Technical University Munich
Professional background:
1992–1994 Lecturer in Finance & External Auditing at the University of St. Gallen
1994–1995 Business Consultant at McKinsey & Company Germany
1995–2001 Holder of the Endowed Chair and Chairman of the Board of the Institute for Financial
Management at the EBS European Business School, Germany
Since 1994 Adjunct Professor of Business Administration at the University of St. Gallen
Since 2001 Holder of the Chair in Entrepreneurial Finance, supported by KfW Bankengruppe (formerly
KfW Endowed Chair for Entrepreneurial Finance) at the Technical University Munich
Since 2003 Scientific Director of the Center for Entrepreneurial and Financial Studies (CEFS) at the
Technical University Munich
Member of the Supervisory Board of Metro AG, Düsseldorf
Member of the Supervisory Board of Linde AG, Munich
Member of the Board of Directors of SpineWelding AG, Schlieren, until April 2011
Vice-Chairman of the “Research and Innovation” Commission of Experts (EFI) of the
German Federal Government until April 2011
Member of the Senate of Fraunhofer Gesellschaft (FhG)
Member of the Commission of the German Corporate Governance Code (since 2012)
Dr Philippe Cottier, born 1967, Swiss citizen
Dr. oec. and lic. rer. publ., University of St. Gallen
Professional background:
1994–1998 UBS AG
– 1994–1995 SBC Warburg Futures & Options Management, Zurich
– 1995–1996 Hedge fund analyst at SBC Private Bank Investment Consulting, Basel
– 1997–1998 Hedge fund analyst and portfolio manager at UBS Warburg, Hong Kong
1998–1999 Boston Consulting Group, Sydney
1998–2009 Harcourt Investment Consulting AG, Zurich
– 1998–2002 Chairman
– 1999–2006 Head of Research
– 2002–2007 CEO
– 2007–2009 Senior advisor, member of the Board of Directors and of the Investment
Committee
Member of the Board of Directors of EFIS AG
Member of the Board of Trustees of the Cottier Donzé Foundation
Member of the Advisory Board of Ansher Holding Ltd.
Member of the Advisory Board of Lumix Capital AG
Vontobel Group, Annual Reports 2011 51

Information relating to Corporate Governance
52 Vontobel Group, Annual Reports 2011
Peter Quadri, born 1945, Swiss citizen
lic. oec. publ.
Professional background:
1970–2007 IBM (International Business Machines) in various functions in systems engineering, sales
and management. Activities in the US, Denmark, Germany and Austria.
– 1996–2007 Member of the Executive Board with overall responsibility for the service business
– 1998–2007 CEO and Chairman of the Board of Directors of IBM Switzerland
Chairman of the Board of Directors of Unitectra
Member of the Board of Directors of Swiss Life Holding AG and Bühler AG
President of the Zurich Chamber of Commerce
Dr Frank Schnewlin, born 1951, Swiss citizen
Dr. ès. sc. écon., University of Lausanne; MBA, Harvard Business School;
MSc, London School of Economics; lic. oec., University of St. Gallen
Professional background:
1983-2001 Various functions within Zurich Financial Services Group
– 1983 Zurich Insurance Company, Zurich
– 1984–1986 Zurich American Insurance Group, Schaumburg, US
– 1986–1987 Senior Territorial Manager at Zurich American Insurance Group, Cleveland, US
– 1987–1989 CFO & Senior Vice President at Universal Underwriters Group, Kansas, US
– 1989–1993 Head of the Corporate Development department, Head office, Zurich
– 1993–2000 Head of the Southern Europe, Asia/Pacific, Middle East and Africa, Latin America
business division, member of the Group Management Board
– 2000–2001 Head of Corporate Center, Head office, Zurich, member of the Group Executive
Committee, Chairman of the Group Finance Council
2002–2007 Group CEO of Bâloise Holding, Head of the Group Corporate Executive Committee
and CEO of the International business division
Vice-Chairman of the Board of Directors of Swiss Life AG and Swiss Life Holding AG;
Member of the Chairman's and Corporate Governance Committee, Chairman of the
Nomination and Compensation Committee, Member of the Investment and Risk
Committee
Member of the Board of Trustees of the Drosos Foundation; Chairman of the
Finance Committee

Clara C. Streit, born 1968, German and US citizen
lic. oec. University of St. Gallen
Professional background:
Since 1992 McKinsey & Company
– 1998 Elected as Principal (Partner)
– 2003 Elected as Director (Senior Partner)
Responsibilities at McKinsey included:
– Chair Global Principal Candidate Evaluation Committee
– Partner responsible for EMEA recruiting
– Head of Financial Institutions Practice Germany / Austria
Information relating to Corporate Governance
Member of the Board of Trustees of the Bundesstiftung Kinderhospiz, Germany
Dr Pierin Vincenz, born 1956, Swiss citizen
Dr. oec., University of St. Gallen; Chairman of the Management Board of the
Raiffeisen Group Switzerland
Professional background:
1979–1982 Schweizerische Treuhandgesellschaft, St. Gallen
1986–1990 Swiss Bank Corporation, Global Treasury, Zurich, and Swiss Bank Corporation
O’Connor Services L.P
1991–1996 Vice President and Treasurer at Hunter Douglas, Lucerne
Since 1996 Raiffeisen Switzerland:
– 1996–1999 Head of the Finance department and member of the Executive Board of
Raiffeisen Switzerland
– Since 1999 CEO of Raiffeisen Switzerland
Chairman of the Board of Directors of Aduno-Gruppe and Plozza Vini SA
Chairman of the Board of Directors of Pfandbriefbank Schweizerischer
Hypothekarinstitute
Member of the Board of Directors of SIX Group
Member of the Board of Directors of Helvetia Holding AG
Member of the Steering Committee of the UNICO Banking Group Brussels
Member of the Committee of the Governing Board of the Swiss Bankers Association
Member of the Management Board of Pflegekinder-Aktion Schweiz
Member of the Board of Directors of the Swiss Finance Institute
Member of the Board of Trustees of the Ostschweizerischen Stiftung für klinische
Krebsforschung
Vontobel Group, Annual Reports 2011 53

Information relating to Corporate Governance
54 Vontobel Group, Annual Reports 2011
3.2 Other activities and functions
See section 3.1 “Members of the Board of Directors”.
3.3 Election and term of office
The Chairman of the Board of Directors and all other members of the Board are
elected individually by the General Meeting of Shareholders. The Board of Directors
constitutes itself except for the position of Chairman. The members of the Board of
Directors are elected for a term of one year and may be re-elected. According to the
internal Organizational Regulations, members of the Board of Directors have to step
down at the General Meeting of Shareholders in the calendar year in which they turn
70. Further information regarding the year in which the individual members of the
Board of Directors were first elected can be found in section 3.1 “Members of the
Board of Directors”.
3.4 Internal organization
Board of Directors
The Board of Directors appoints a Vice-Chairman from among its members. The
Chairman of the Board of Directors appoints a Secretary, who need not be a member
of the Board of Directors. The Board of Directors meets as often as necessary to perform
its duties and generally once or twice a quarter but no fewer than four times a
year. The meetings usually last around eight hours. A total of ten meetings were held
during the year under review (in February, March, April, May, July, August, October,
November and December); this included a two-day strategy meeting. The Board of
Directors constitutes a quorum when the absolute majority of its members is present.
Board resolutions and appointments are decided by the absolute majority of the
members present, in accordance with the Organizational Regulations. In the event of
a tied vote, the chairman of the meeting casts the deciding vote. Resolutions passed
by circular letter must be approved by the majority of all members of the Board of
Directors.
The Board of Directors may delegate some of its duties to committees. The standing
committees are as follows: the Nomination and Compensation Committee and the
Risk and Audit Committee. Their duties and powers of authorization are defined in
internal regulations. Information on the composition of the individual committees
can be found in section 3.1 “Members of the Board of Directors”.
Nomination and Compensation Committee (NCC)
The Nomination and Compensation Committee prepares decisions concerning all important
personnel issues and related organizational issues at the level of the Group
Executive Management and senior executives, including compensation issues, for approval
by the Board of Directors. The Nomination and Compensation Committee also
decides on the compensation of the members of the Board of Directors of Vontobel
Holding AG with the exception of the Chairman. The meetings of the Nomination
and Compensation Committee are attended by the CEO as well as the Head of
Human Resources. The CFO is invited to attend when financial issues are discussed.
The Nomination and Compensation Committee meets at least once a year.

The meetings usually last around four hours. A total of five meetings were held during
the year under review (in February, March, June, October and December).
Audit Committee (AC), from January 2012 Risk and Audit Committee (RAC)
The RAC monitors and evaluates the Group's risk policy, the integrity of the financial
results, internal controls in the area of financial reporting, and the effectiveness of
the external auditor and Internal Audit. The Committee also examines whether the
systems created to monitor compliance with legal and statutory provisions and internal
regulations are appropriate and whether they are being applied properly. It reports
to the Board of Directors and provides it with recommendations. Its range of
responsibilities includes: aspects of external and internal auditing; the interaction between
the Board of Directors, the CEO, the Group Executive Management and the
heads of the business units and support units; the internal control system; risk management;
compliance activities and the structure of the Compliance function; accounting;
and the receipt and handling of internal and external audit reports. The periodic
review of the risk policy also entails the evaluation and approval of the
combined Group-wide stress tests and their results.
The RAC can conduct special reviews of important issues in consultation with the
Chairman of the Board of Directors and can request additional internal and/or external
resources for this purpose.
The Chairman of the Board of Directors is not a member of the RAC but is invited to
attend the meetings. As at 31 December 2011, all the members of the RAC met the
independence criteria prescribed by supervisory law. The meetings of the RAC are
also attended by the CEO, the CFO and representatives of Internal Audit and the external
auditor. When specific topics are discussed, internal specialists in the relevant
fields – particularly from Finance & Risk – are regularly invited to attend. The RAC
meets at least three times per year. The meetings usually last four to six hours. A total
of six meetings were held during the year under review (in February, June, July,
October, November and December).
When necessary, ad-hoc committees are formed to deal with specific topics such as
mergers and acquisitions projects. No ad-hoc committees were formed during the
year under review.
Internal Audit
Internal Audit helps the Board of Directors to exercise its statutory supervisory and
control duties within the Vontobel Group and performs the audit functions assigned
to it. The duties and rights of Internal Audit are detailed in separate regulations. It
has an unlimited right of inspection within all Group companies; all business documents
are available for it to inspect at any time. Internal Audit reports to the Board of
Directors and regularly attends the meetings of the Risk and Audit Committee. Its
audit activities are based on the guidelines issued by the Swiss Institute of Internal
Auditing (SVIR). Internal Audit coordinates its activities with the external auditor in
accordance with professional guidelines.
Information relating to Corporate Governance
Vontobel Group, Annual Reports 2011 55

Information relating to Corporate Governance
56 Vontobel Group, Annual Reports 2011
3.5 Powers of authorization
Board of Directors
The Board of Directors is responsible for the overall management of the company and
the supervision and oversight of the managers of the holding company and the
Group. It periodically revises and approves the Mission Statement and Group strategy,
issues directives and guidelines where required, and determines the Group’s organizational
structure and risk policies. Its range of responsibilities also includes the
structuring and approval of the annual and medium-term financial and capital planning
of the holding company and the Group. In addition, it receives reports about the
existence, appropriateness and effectiveness of the internal control system. The
Board of Directors approves the combined Group-wide stress test results and ensures
that risk exposures and risk capacity are adequately aligned as part of the Group's
capital planning.
The Board of Directors supervises and monitors the individuals entrusted with the operational
management of the company. In particular, it is responsible for appointing
and dismissing the CEO and members of the Group Executive Management, as well
as the Head of Internal Audit. It also approves the appointment and promotion of
managers of the Vontobel Group. Furthermore, the Board of Directors performs the
duties assigned to it by law (Art. 716a of the Swiss Code of Obligations). The delegation
of powers between the Board of Directors, its committees, the CEO, and the
Group Executive Management is specified in the Group’s Organizational Regulations
(www.vontobel.com > Vontobel Group > Investor & Media Relations > Annual General
Meeting). Among other things, the purchase and disposal of shareholdings, the
establishment and closure of Group companies and regional offices, the raising of
loans and bonds as well as the issuing of bonds or guarantees that exceed a certain
limit, are to be approved by the Board of Directors. Investment plans and other decisions
that have an impact on cash flows must also be approved by the Board of Directors
once a certain threshold is exceeded.
Group Executive Management
The Group Executive Management is the Group’s executive body and reports to the
Board of Directors. It is responsible for all Group issues that do not expressly fall
within the remit of the Board of Directors of Vontobel Holding AG or a Group company
according to legislation, the Articles of Association or the Organizational Regulations.
The Group Executive Management functions as a committee and all decisions
have to be reached by the entire executive body. If its members are unable to agree
on an issue, the decision is reached by the CEO. The Group Executive Management is
responsible, in particular, for developing a Group-wide business strategy for presentation
to the Board of Directors, implementing the decisions reached by the Board of
Directors within the Group, monitoring the execution of these decisions, and managing
and supervising the Group’s everyday operations. The latter must be effected
within the scope of the financial plan, annual budget, annual objectives, mediumterm
planning and risk policy and in accordance with the other regulations and instructions
issued by the Board of Directors. It is responsible for ensuring compliance
with legal and regulatory requirements as well as applicable industry standards. Its
responsibilities also include the management of income, the balance sheet structure

and the formulation of the risk policy. The Group Executive Management submits the
risk policy to the RAC for approval by the Board of Directors and regularly reviews
the policy and presents any amendments to the Board. A detailed description of the
Vontobel Group’s risk policy, Risk Management function and risk controls can be
found in the Notes to the consolidated financial statements commencing on page 89.
The Group Executive Management is responsible for issuing regulations relating to
the implementation of the risk policy, i.e. rules governing basic aspects of risk responsibility,
risk management and risk control. The implementation of the risk policy
involves the regular execution and analysis of stress tests as well as the analysis of
risk capacity, among other activities. In particular, this includes the organization of
the internal control system and its compliance with the requisite division of powers
and functions. The Group Executive Management is also responsible for reports to
the Board of Directors and the Risk and Audit Committee about the existence, appropriateness
and effectiveness of internal controls.
The duties of the Group Executive Management also include the drawing-up of the
Group’s annual budget and the definition of its annual objectives, broken down by
business unit and support unit, and their submission to the Board of Directors for
approval.
Furthermore, the Group Executive Management reaches decisions about new products,
business activities and markets. If this has a significant impact on the Group’s
business policy, the Group Executive Management refers the matter directly to the
Board of Directors. However, if the issue has a significant impact on the Group’s risk
profile, the Group Executive Management obtains the relevant approval from the
Board of Directors through the Risk and Audit Committee. The Group Executive
Management ensures that a professional investment policy is permanently in place
and is implemented promptly throughout the Group. It issues the directives which
apply to the entire Group and which – according to legal provisions, the Articles of
Association or the current Organizational Regulations – fall exclusively within the
remit of the Group Executive Management. Equally, it is responsible for issuing directives
for the Compliance function and Asset & Liability Management. In addition, its
competences include the granting of loans in accordance with the powers of authorization
defined in the credit regulations as well as the assumption of trading positions
on own account within the defined limits. The Group Executive Management delegates
the permissible limits to the responsible areas and units within the Group.
Further information about the delegation of powers between the Board of Directors
and the Group Executive Management can be found in the Organizational Regulations
of Vontobel Holding AG, which are available on the Internet: www.vontobel.
com > Vontobel Group > Investor & Media Relations > Annual General Meeting.
3.6 Information and control instruments relating to the Group Executive
Management
The Board of Directors meets at least four times a year as specified in the Organizational
Regulations; in practice, there are six to eight meetings a year. The ordinary
Information relating to Corporate Governance
Vontobel Group, Annual Reports 2011 57

Information relating to Corporate Governance
4. Group Executive Management
58 Vontobel Group, Annual Reports 2011
meetings usually last an entire day. These meetings are also attended by the CEO,
the CFO and, depending on the items on the agenda, other members of Group Executive
Management or internal specialists. The Board of Directors receives monthly reports
about the performance of the business and is informed about the development
of risk as well as the Group’s compliance with legal, regulatory and internal rules and
requirements at least every six months. Its control instruments include semi-annual
reporting requirements, the annual budgeting process and internal and external audits.
The periodic reporting requirements include a monthly financial report, which
provides information on the current performance of the business and the corresponding
realization of targets at both Group level and business unit level (MIS), as well as
information about the meetings of the Group Executive Management. As part of its
risk reporting, the Vontobel Group discloses information about the development of
market, liquidity, credit, operational and reputational risks. Detailed information on
the management and monitoring of these risks can be found in the Notes to the consolidated
financial statements (page 89 - 104). Internal Audit reports to the Chairman
of the Board of Directors and the Risk and Audit Committee about its audit activities
on an ongoing basis and provides the Board of Directors with consolidated
reports twice annually. The external auditor produces its annual statutory report (report
about the statutory audit) as well as further reports on audits addressing specific
topics for submission to the Board of Directors. The statutory report is addressed
to the Board of Directors and a copy of the report is submitted to the Swiss Financial
Market Supervisory Authority (FINMA) as well as the Group Executive Management
and the Head of Internal Audit.
During the meetings of the Board of Directors, any member of the Board may request
information on any matters relating to the holding company and the Group from the
other members of the Board of Directors or the CEO. Outside the meetings of the
Board of Directors, any member of the Board may request information about the performance
of the business from the CEO and, subject to the approval of the Chairman,
may obtain information about specific business transactions and inspect business
records.
4.1 Members of the Group Executive Management as of 31 December 2011:
Function Nationality
Dr Zeno Staub CEO CH
Dr Martin Sieg Castagnola CFO CH
Peter Fanconi Member CH
Felix Lenhard Member CH
Axel Schwarzer Member D
Roger Studer Member CH
Resignation in 2011
Herbert J. Scheidt Member until 03-05-11

Dr Zeno Staub, born 1969, Swiss citizen
CEO of the Vontobel Group since 4 May 2011
Dr. oec., University of St. Gallen
Information relating to Corporate Governance
Professional background:
1994–2000 Founding shareholder and Managing Partner of almafin AG
2000 Member of the Executive Management of BZ Informatik AG
Since 2001 Vontobel Group
– 2001–2002 Head of the CFO management support unit (Controlling and IT project portfolio)
– 2003–2006 CFO and Member of the Group Executive Management
– 2006–2007 Head of Investment Banking and Member of the Group Executive Management
– 2008–2011 Head of Asset Management and Member of the Group Executive Management
Member of the Management Board of Schweizerische Management Gesellschaft
President of the Board of Directors of the Sustainability Forum Zurich
Member of the Swiss Society for Financial Market Research (SGF)
Dr Martin Sieg Castagnola, born 1965, Swiss citizen
CFO of the Vontobel Group since 1 November 2008
Dr. oec., University of Zurich
Professional background:
1994–2008 Zürcher Kantonalbank (ZKB), Zurich
– 1994–1999 Head of the Economy department and Risk Controlling
– 1999–2003 Head of Equities & Equity Derivatives Trading
– 2003–2005 Head of Portfolio Management of ZKB Axxess Vision
– 2005–2006 Head of Treasury
– 2007 Head of Asset Management
– 2007–2008 Member of the Executive Board and Head of Investment & Private Banking
1994–1999 Lecturing assignments at the University of Zurich in the area of empirical economic
research/econometrics; assistant at the Institute for Empirical Research in Economics
Vice-Chairman of the Regulatory Board of the SIX Swiss Exchange AG and Chairman
of the Participants & Surveillance Committee of the SIX Swiss Exchange AG
Vontobel Group, Annual Reports 2011 59

Information relating to Corporate Governance
60 Vontobel Group, Annual Reports 2011
Peter A. Fanconi, born 1967, Swiss citizen
Head of Private Banking since 1 March 2009
lic. iur., University of Zurich
Professional background:
1995–1997 SCG St. Gallen Consulting Group AG
1997–2002 Founding shareholder and Managing Partner of MAP Group AG
2002–2003 PwC, Managing Partner and Head of Business Development Switzerland within
Corporate Finance/M&A business (after PwC acquired MAP Group AG)
2003–2009 Harcourt Investment Consulting AG
– 2003–2007 Managing Partner, Member of the Board of Directors
– 2007–2009 CEO, Member of the Board of Directors
Member of the Board of the Zurich Banking Association
Felix Lenhard, born 1965, Swiss citizen
Head of Operations of the Vontobel Group since 1 January 2010
lic. oec., University of St. Gallen
Professional background:
1991–1996 PwC, Senior Consultant Financial Services division, Zurich and London
1996–2000 Partner of almafin AG, St. Gallen, with responsibility for the area of consulting
2000 Member of the Executive Management of BZ Informatik AG
Since 2001 Vontobel Group
– 2001–2003 Project Manager (implementation of functional organization; central
project controlling)
– 2003–2009 Head of Business Applications division within the Operations support unit
– 2009 Head of IT within the Operations support unit

Information relating to Corporate Governance
Axel Schwarzer, born. 1958, German citizien
Head of Asset Management since 4 May 2011
1st and 2nd Law examinations, Johann Gutenberg University in Mainz and Frankfurt
Professional background:
1989–2010 Deutsche Bank
– 1989–1997 Various operational and strategic functions in the Private Banking division of Deutsche
Bank, Frankfurt
– 1997–1999 Head of Sales Suppport and later Head of Securities Product Management for the
German Private and Retail Bank of Deutsche Bank, Frankfurt
– 1999–2005 Head of Sales, Products, Marketing and Services for DWS Investments and European
Head of Distribution for the institutional and retail business of Deutsche Bank
Asset Management, Frankfurt
– 2005–2009 CEO of DWS Investments (formerly Scudder) and Head of Deutsche Asset Management
Americas, New York
– 2009–2010 Vice Chairman of Deutsche Asset Management (DeAM) and Global Head of Relationship
Management at DWS Investments, Frankfurt
Vice-Chairman of the Supervisory Board of Fink und Fuchs Public Relations AG,
Wiesbaden
Roger Studer, born 1967, Swiss citizen
Head of Investment Banking since 1 January 2008
MBA, Rochester-Berne; Swiss Certified Financial Analyst and Portfolio Manager
(CIIA); Swiss Certified Expert in Finance and Investments (CIWM)
Professional background:
1984–1996 Bank Vontobel AG
– 1992–1995 Head of Warrants and Options Trading
– 1995–1996 Head of Market Making Derivative Products
1997–1998 DG Bank AG (Switzerland), Head of Private Clients Austria
1999 Rentenanstalt/Swiss Life, Head of Quantitative Asset Allocation
1999–2000 ABN AMRO Bank AG (Switzerland), Head of Portfolio Management and Research
Since 2001 Vontobel Group:
– 2001–2002 Head of Risk Management and Development of Derivative Products
– 2003–2007 Head of Financial Products
Vice President of the European Structured Investment Products Association (Eusipa),
Brussels
Member of the Cash Market Advisory Board of the SIX Swiss Exchange AG
Member of the Commission for Structured Products (KSP) of Scoach Schweiz AG
Vontobel Group, Annual Reports 2011 61

Information relating to Corporate Governance
5. Compensation, shareholdings
and loans
62 Vontobel Group, Annual Reports 2011
4.2 Other activities and functions
See section 4.1 “Members of the Group Executive Management”.
4.3 Management contracts
There are no management contracts.
5.1 Structure and definition of compensation and stock ownership plans
The Vontobel Group’s compensation system is designed to successfully motivate employees
at all levels of the company to realize or even exceed ambitious short, medium
and long-term strategic objectives. Through its Long-Term Incentive Plans, it
systematically rewards the sustained achievement of good financial results in combination
with a relatively low risk profile more generously than the achievement of
good financial results in combination with a comparatively higher risk profile. The
compensation system introduced in spring 2005 is structured in such a way as to
align the interests of all stakeholders as effectively as possible. Consequently, the
principles set out in the FINMA Circular 10/1 “Remuneration Schemes”, which is
recommended as a guideline for the Vontobel Group, have largely been implemented.
The CEO submits a proposal to the Nomination and Compensation Committee of the
Board of Directors (NCC) in June and December of each year regarding the level of
bonus accruals to be recorded for the first half of the year and the size of the annual
bonus pool, respectively. The Nomination and Compensation Committee discusses
the size of the bonus pool and subsequently submits a proposal to the entire Board of
Directors, which reaches a decision on the bonus pool. The total bonus pool is divided
into smaller bonus pools for each business unit and support unit by the CEO of
the Vontobel Group on the basis of various quantitative and qualitative criteria.
The Vontobel Group wants to be a fair and attractive employer to its staff, management
and the members of the Board of Directors. It is therefore very important for it
to offer compensation that is in line with market rates. When determining fixed salaries
and bonuses, it consults benchmarking studies and comparisons of compensation
levels, particularly with regard to medium-sized institutions that are active in private
banking, institutional asset management and the product business within investment
banking in Switzerland. These data are supplied to the Vontobel Group in an anonymized
form by external consultants (e.g. Towers Watson).
Board of Directors
The compensation of the Chairman of the Board of Directors, who performs this role
on a full time basis, comprises a base salary that is paid each month and a variable
bonus which is determined each year according to performance-related criteria (and
includes his participation in the stock ownership plan), as in the case of the members
of the Group Executive Management. The Nomination and Compensation Committee
determines the level of compensation, including any special payments, of the
members of the Board of Directors. The Board of Directors decides on the level of
compensation paid to the Chairman; the Chairman is not party to this discussion

The compensation of the other members of the Board of Directors consists of a
minimum base component, which is paid in cash. If the dividend paid exceeds 100%
of the par value of the registered share of Vontobel Holding AG, the base compensation
increases accordingly. This additional compensation component is paid in registered
shares of Vontobel Holding AG, which are blocked for a period of three years.
In addition, members of the Board of Directors receive an expense allowance and actual
costs are reimbursed. The members of the committees are paid additional compensation.
The modalities of the compensation paid to the members of the Board of
Directors are reviewed annually and determined by the Nomination and Compensation
Committee. For the financial year 2011, the performance-related component of
the compensation paid to the Chairman of the Board of Directors amounted to 169%
(previous year 208%) of the base salary and the performance-related component of
the compensation paid to the other members of the Board of Directors amounted to
an average of 6% (previous year 24%) of the base compensation.
Group Executive Management
As in the case of all employees of the Vontobel Group, the performance of the CEO
and members of the Group Executive Management is evaluated systematically according
to the principles of management by objectives (MbO). The compensation
paid to members of the Group Executive Management comprises a base salary that is
paid in cash and a variable bonus which is determined each year and takes the form of
a one-off payment. For the financial year 2011, the variable bonus paid to the members
of the Group Executive Management based on an analysis of the achievement of
their individual objectives amounted to an average of 184% (previous year 294%) of
the base salary. The change compared to the previous year reflects the development
of the Group’s financial result and the performance of the relevant business unit, as
well as the extent to which the individual objectives of the members of the Group
Executive Management were achieved (see below for details of the objectives). Within
the scope of the Vontobel Group’s stock ownership plan, half of the bonus is paid in
cash and half in the form of registered shares of Vontobel Holding AG, which are
blocked for a period of three years. The number of these bonus shares forms the basis
for the number of performance shares allocated after a period of three years, depending
on the results achieved during the preceding three financial years. Further information
on the modalities of the compensation paid to the members of the Group
Executive Management is disclosed in the Notes to the consolidated financial statements,
note 29. The Nomination and Compensation Committee of the Board of
Directors is responsible for determining the compensation paid to the members of the
Group Executive Management, including the individual compensation components.
The entire Board of Directors is informed about compensation decisions by the NCC.
The base salary and bonus are determined on an annual basis.
The annual bonus paid to the members of the Group Executive Management is determined
on the basis of the achievement of their individual objectives, as well as the
realization of the targets defined for the relevant business unit or support unit and
the company as a whole. The evaluation takes account of their performance and
leadership.
Information relating to Corporate Governance
Vontobel Group, Annual Reports 2011 63

Information relating to Corporate Governance
6. Shareholders' participatory rights
64 Vontobel Group, Annual Reports 2011
This means that aspects including:
– Individually agreed budget targets
– Process/structure/system-related targets
– Client/market/product-related targets
– Culture/expertise/employee-related targets
are systematically assessed for each member of the Group Executive Management
and are taken into account when determining their individual bonuses. This process is
not based on a specific formula or on fixed weighting criteria. Instead, the various
aspects described above are considered in respect of the function of each member of
the Group Executive Management on a differentiated basis. These individual performance
targets are also designed to ensure that the Group Executive Management
and each of its members do not assume any inappropriate risks and that the risk
policy approved by the Board of Directors is implemented properly. Against the backdrop
of significant market developments and regulatory changes, the bonuses
awarded to the members of the Group Executive Management are discussed in detail
by the NCC and are determined using its best judgment. The Vontobel Group does
not disclose the detailed objectives when determining the variable compensation of
the individual members of the Group Executive Management. Any such disclosure
would reveal activities and plans of strategic relevance (e.g. acquisition targets) that
could place Vontobel at a competitive disadvantage. In this case, it is to be assumed
that competitors might use the information about Vontobel’s ambitions in individual
markets in a way that would prove detrimental to the Group (e.g. to poach clients or
employees).
In principle, all the employment contracts of employees of the Vontobel Group
(i.e. including members of the Group Executive Management) are subject to a notice
period of a maximum of six months. The contracts concluded with the members of
the Board of Directors and the Group Executive Management do not contain any
clauses relating to severance payments.
Information on compensation, shareholdings and loans is provided in the Notes to
the consolidated financial statements (notes 28–30).
6.1 Voting rights: restrictions and representation
According to Art. 4 of the Articles of Association, the transfer of registered shares is
subject to the approval of the Board of Directors or a committee designated by the
Board of Directors. If the registered shares have been purchased on the stock exchange,
ownership of the shares passes to the purchaser when transferred; if they are
purchased other than through the stock exchange, ownership passes to the purchaser
as soon as the purchaser applies to be recognized as a shareholder in the company’s
share register. In any event, the purchaser cannot exercise either the voting
rights associated with the shares or any other rights associated with the voting rights
until the company has officially recognized the purchaser as a shareholder. The purchaser
is not subject to any restrictions on the exercising of all other shareholder
rights.

The Board of Directors can refuse to recognize a purchaser of registered shares as a
shareholder with full rights if
(a) the number of registered shares held by the purchaser exceeds 10% of the total
number of shares entered in the Commercial Register. These voting rights restrictions
are intended to ensure a clear control structure. The General Meeting of
Shareholders may rescind them at any time. Natural or legal persons that take
coordinated action in an effort to avoid restrictions on entry in the share register
are considered as one single purchaser with regard to this provision. The duly
acquired rights of shareholders or shareholder groups that had already owned
more than 10% of share capital prior to the introduction of this registration
restriction on 25 January 2001 remain reserved in accordance with Art. 4 of the
Articles of Association.
(b) the purchaser does not, upon the request of the company, expressly state that he
has acquired the shares in his own name and for his own account.
The company recognizes as shareholders and beneficiaries of registered shares only
those natural or legal persons duly registered in the share register. Purchasers of shares
who have not yet been recognized by the company are entered in the share register after
transfer of ownership as shareholders without voting rights; the corresponding
shares are deemed not to be represented at the General Meeting of Shareholders.
See section 6.2 “Statutory quorums” for information on the conditions that apply to
the lifting of statutory restrictions on voting rights.
No nominee registrations are made in the share register.
6.2 Statutory quorums
Resolutions and elections are decided at the General Meeting of Shareholders by an
absolute majority of the votes cast, unless otherwise prescribed by law. In accordance
with Art. 17 of the Articles of Association, the General Meeting of Shareholders
must pass resolutions with at least two thirds of the votes represented and the absolute
majority of the share par value represented voting in favour of the resolution in
the following cases:
(a) Modification of the company’s business purpose
(b) Issuance of shares with special voting rights
(c) Modification or abolishment of the restrictions regarding transferability of registered
shares
(d) Authorized or conditional capital increases
(e) Capital increases from equity capital in return for contributions in kind or for the
purpose of acquisitions in kind or the granting of special benefits
(f) Restriction or suspension of subscription rights
(g) Relocation of the company’s registered office
(h) Removal of more than one member of the Board of Directors during the course
of one financial year
(i) Dissolution of the company (with or without liquidation)
(j) Distribution of a dividend in kind
(k) Increase in share capital (in all cases)
Information relating to Corporate Governance
Vontobel Group, Annual Reports 2011 65

Information relating to Corporate Governance
7. Change of control and
defence measures
66 Vontobel Group, Annual Reports 2011
6.3 Convening of General Meeting of Shareholders
The following legal regulations apply to the convening of the General Meeting of
Shareholders. Written invitations to the General Meeting of Shareholders, including
the items on the agenda and the proposals, are issued at least 20 days prior to the
date of the General Meeting of Shareholders. No resolutions can be passed on items
that have not been duly placed on the agenda with the exception of motions to convene
an Extraordinary General Meeting or to initiate a special audit. One or more
shareholders who collectively represent at least 10% of the share capital may request
that an Extraordinary General Meeting be convened. In this case, the Extraordinary
General Meeting must be held no later than two months after the request was
received.
6.4 Inclusion of an item on the agenda
Shareholders representing shares with an aggregate par value of at least 0.5% of
share capital may request that an item be included on the agenda, provided the request
is submitted in writing and the items to be included and the proposals to be put
forward are specified. In accordance with Art. 10 of the Articles of Association, any
such request must be received by the company at least two months prior to the date
of the General Meeting of Shareholders.
6.5 Entry in the share register and proxies
Shareholders may only be represented by proxy at the General Meeting of Shareholders
if a written power of attorney is granted. No entries will be made in the share
register from the date on which the invitations to the General Meeting of Shareholders
are sent out until one day after the General Meeting of Shareholders.
7.1 Mandatory public takeover offer
The Articles of Association do not include an “opting out” or “opting up” clause with
regard to mandatory public takeover offers, as defined in Art. 22 of the Stock Exchange
Act. The instruments available to the company to defend itself against hostile
takeover bids essentially comprise the following measures already referred to above:
– At present, 40% of voting rights are bound by a shareholder pool agreement on a
long term basis (see section 1.2 “Major shareholders and groups of shareholders
with pooled voting rights”).
– The registration restrictions allow the Board of Directors to refuse to enter shareholders
or a group of shareholders in the share register once their shareholdings
exceed a 10% threshold (see section 6.1 “Voting rights: restrictions and representation”).
– A change in the registration restrictions or the removal of more than one member
of the Board of Directors during the course of one financial year must be approved
by a qualified majority (see section 6.2 “Statutory quorums”).
7.2 Clauses on changes of control
The contracts with the members of the Board of Directors and the Group Executive
Management do not make provision for any agreements in the case of a change of
corporate control (change of control clauses). In the event of a change of control, the

claims arising from the stock ownership plan will, however, be granted directly if the
plan cannot be continued.
8.1 Duration of mandate and term of office of auditor in charge
The consolidated financial statements and the financial statements of Vontobel Holding
AG and the majority of the subsidiaries are audited by Ernst & Young. The
remaining subsidiaries are audited by other companies. The external auditor of
Vontobel Holding AG is elected for a period of one year at the Ordinary General
Meeting of Shareholders. Ernst & Young was elected as auditor for the first time
when Vontobel Holding AG was established in 1983. The auditor in charge is Iqbal
Khan, who has held this function since the financial year 2009. The holder of this
office changes every seven years, in accordance with banking legislation. Iqbal Khan
has also performed the role of statutory auditor since the financial year 2009.
8.2 Audit fees
Fees paid to the auditor
31-12-11 31-12-10
1,000 CHF 1,000 CHF
Auditing fees billed by Ernst & Young 2,921.0 2,986.7
Additional fees billed by Ernst & Young for audit-related services 1,467.5 278.3
Tax advice 731.8 46.8
Transaction consulting 479.4 -
Other consulting services 256.3 231.5
8.3 Additional fees
The additional fees primarily concern services provided in connection with projects
and audit-related services regarding international accounting as well as tax or regulatory
issues. The audit company is permitted to provide these services as well as performing
the auditing duties of the external auditor as they do not give rise to any
conflicts of interests. The subject of any new audits, as well as special audits that
have to be conducted at the request of the supervisory authorities, are subject to the
approval of the Risk and Audit Committee. There is no prescribed catalogue of criteria
that has to be consulted when approving these types of additional mandates; the
Risk and Audit Committee decides on an individual basis whether the issuing of the
additional mandates would impact the auditor's independence.
8.4 Supervision and control instruments relating to audits
The Board of Directors is responsible for the supervision and control of the external
audit process. Its remit includes reviewing internal and external audit reports; it is
assisted by the Risk and Audit Committee when discharging this duty. The Risk and
Audit Committee receives regular reports from representatives of the external auditor
and it discusses these reports and evaluates their quality and comprehensiveness.
The auditor in charge who represents the external auditor attended five meetings of
the Audit Committee in the year under review. The Head of Internal Audit attended
all six meetings of the Audit Committee in the year under review.
Information relating to Corporate Governance
8. Statutory auditor/Group auditor
Vontobel Group, Annual Reports 2011 67

Information relating to Corporate Governance
9. Information policy
68 Vontobel Group, Annual Reports 2011
The Vontobel Group, as a banking group, is subject to consolidated supervision by the
Swiss Financial Market Supervisory Authority (FINMA). The requirements set out in
Art. 728 of the Swiss Code of Obligations (independence of auditors), as well as the
guidelines stipulated by FINMA in Circular 08/41 “Audit matters”, have to be observed
when selecting an external audit company. Other relevant selection criteria applied by
the Board of Directors comprise the auditor's proven level of expertise, including its
ability to address complex finance and valuation issues in accordance with the accounting
standards prescribed by FINMA and the International Financial Reports
Standards (IFRS). Considerable importance is also assigned to continuity. When evaluating
the performance and fees of the external auditor, the Risk and Audit Committee
bases its assessment on its own experience and professional powers of judgment; there
is no prescribed catalogue of criteria that has to be consulted in this context.
As a company listed on the stock exchange, Vontobel Holding AG pursues a consistent
and transparent information policy vis-à-vis its shareholders, clients and employees, as
well as the financial community and the general public. Its regular reporting activities
include the publication of the annual and half-year reports and shareholders’ letters, as
well as the organization of events such as the annual press conference, conferences
with financial analysts and the General Meeting of Shareholders. When important
events occur, the above-mentioned stakeholders are informed simultaneously via press
releases.
Details of sources of information, the financial calendar and contact addresses are
listed on page 188 of the Annual Report.

Consolidated financial statements
Consolidated income statement 70
Consolidated statement of comprehensive income 71
Consolidated balance sheet 72
Statement of equity 74
Consolidated cash flow statement 76
Notes to the consolidated financial statements 78
Report of the Group Auditors 173
Vontobel Group, Annual Reports 2011 69

Consolidated income statement
70 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Interest income 66.8 59.8 7.0 12
Interest expense 6.6 6.7 (0.1) (1)
Net interest income 1 60.2 53.1 7.1 13
Fee and commission income 570.6 593.1 (22.5) (4)
Fee and commission expense 118.4 114.9 3.5 3
Net fee and commission income 2 452.2 478.2 (26.0) (5)
Trading income 3 225.3 273.9 (48.6) (18)
Other income 5, 6 28.0 25.0 3.0 12
Total operating income 765.7 830.2 (64.5) (8)
Personnel expense 7 373.1 392.3 (19.2) (5)
General expense 8 178.9 196.2 (17.3) (9)
Depreciation of property, equipment and intangible assets 9 60.2 61.8 (1.6) (3)
Value adjustments, provisions and losses 10 6.6 6.8 (0.2) (3)
Operating expense 618.8 657.1 (38.3) (6)
Profit before taxes 146.9 173.1 (26.2) (15)
Taxes 11 33.1 25.8 7.3 28
Group net profit 113.8 147.3 (33.5) (23)
of which allocated to minority interests 0.1 (0.5) 0.6
of which allocated to shareholders of Vontobel Holding AG 113.7 147.8 (34.1) (23)
Share information
Basic earnings per share (CHF) 1 13 1.78 2.31 (0.53) (23)
Diluted earnings per share (CHF) 1 13 1.76 2.26 (0.50) (22)
1 Basis: weighted average number of shares

Consolidated statement of comprehensive income
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Group net profit according to the income statement 113.8 147.3 (33.5) (23)
Other comprehensive income
Currency translation adjustments
Income during the reporting period (2.8) (32.9) 30.1
Gains and losses transferred to the income statemtent 0.1 0.0 0.1
Currency translation adjustments, net of tax
Financial investments carried at fair value (“available-for-sale”)
(2.7) (32.9) 30.2
Income during the reporting period (20.8) 11.0 (31.8) (289)
Gains and losses transferred to the income statement 2.8 (10.2) 13.0
Financial investments carried at fair value, net of tax (18.0) 0.8 (18.8)
Total other comprehensive income, net of tax (20.7) (32.1) 11.4
Comprehensive income 93.1 115.2 (22.1) (19)
of which allocated to minority interests 0.1 (0.5) 0.6
of which allocated to shareholders of Vontobel Holding AG 93.0 115.7 (22.7) (20)
Vontobel Group, Annual Reports 2011 71

Consolidated balance sheet
Assets
72 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Cash 2,999.6 1,457.6 1,542.0 106
Due from banks 2,417.4 2,227.8 189.6 9
Cash collateral for reverse-repurchase agreements 22 1,101.0 300.0 801.0 267
Trading portfolio assets 14 1,441.8 2,017.3 (575.5) (29)
Positive replacement values 14, 42, 43 113.0 197.2 (84.2) (43)
Other financial assets at fair value 14 6,946.8 8,476.6 (1,529.8) (18)
Securities lent or delivered as collateral 14, 16, 22 631.0 500.1 130.9 26
Due from customers 15 1,370.4 1,427.0 (56.6) (4)
Accrued income and prepaid expenses 221.1 226.6 (5.5) (2)
Financial investments 16 1,040.3 1,044.6 (4.3) (0)
Investments in associates 17 0.8 0.6 0.2 33
Property and equipment 18 198.7 204.8 (6.1) (3)
Goodwill and other intangible assets 19 140.6 150.7 (10.1) (7)
Current tax assets 15.5 4.4 11.1 252
Deferred tax assets 11 8.1 6.3 1.8 29
Other assets 20 45.7 60.0 (14.3) (24)
Total assets 18,691.8 18,301.6 390.2 2
Total subordinated assets 4.8 5.0 (0.2) (4)

Liabilities and equity
Consolidated balance sheet
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Due to banks 653.8 1,472.0 (818.2) (56)
Trading portfolio liabilities 14 1,044.0 1,215.8 (171.8) (14)
Negative replacement values 14, 42, 43 752.7 544.2 208.5 38
Other financial liabilities at fair value 14 6,802.7 8,183.0 (1,380.3) (17)
Due to customers 23 7,538.7 4,925.7 2,613.0 53
Accrued expenses and deferred income 290.9 325.9 (35.0) (11)
Current tax liabilities 12.4 15.3 (2.9) (19)
Deferred tax liabilities 11 53.7 56.6 (2.9) (5)
Provisions 25 12.4 10.4 2.0 19
Other liabilities 24 33.9 49.2 (15.3) (31)
Total liabilities 17,195.2 16,798.1 397.1 2
Share capital 26 65.0 65.0 0.0 0
Capital reserve 176.5 189.6 (13.1) (7)
Net gains/(losses) on available-for-sale financial investments 27 33.8 51.8 (18.0) (35)
Currency translation adjustments (49.1) (46.2) (2.9)
Retained earnings 1,321.2 1,298.0 23.2 2
Equity classified as a liability to purchase minority interests 0.0 (0.1) 0.1
Treasury shares 26 (50.8) (54.2) 3.4
Shareholders' equity 1,496.6 1,503.9 (7.3) (0)
Minority interests 0.0 (0.4) 0.4
Total equity 1,496.6 1,503.5 (6.9) (0)
Total liabilities and equity 18,691.8 18,301.6 390.2 2
Vontobel Group, Annual Reports 2011 73

Statement of equity
CHF mns Share capital Treasury shares
Balance as of 01-01-10
Impact of changes to the accounting principles
65.0 (49.5)
Balance as of 01-01-10 after adjustments 65.0 (49.5)
Group net profit
Translation differences during the reporting period
Translation differences transferred to the income statement
Income from available-for-sale financial investments during the reporting period
Income from available-for-sale financial investments transferred to the income statement
Other comprehensive income, net of tax 0.0 0.0
Comprehensive income 0.0 0.0
Dividend payment 1
Purchase of treasury shares (83.2)
Sale of treasury shares
Employee share based benefit programs
Change in minority interests
Change in liability to purchase minority interests
78.5
Other effects 0.0 0.0
Ownership-related changes 0.0 (4.7)
Balance as of 31-12-10 65.0 (54.2)
Balance as of 01-01-11
Impact of changes to the accounting principles
Other adjustments
65.0 (54.2)
Balance as of 01-01-11 after adjustments 65.0 (54.2)
Group net profit
Translation differences during the reporting period
Translation differences transferred to the income statement
Income from available-for-sale financial investments during the reporting period
Income from available-for-sale financial investments transferred to the income statement
Other comprehensive income, net of tax 0.0 0.0
Comprehensive income 0.0 0.0
Dividend payment 1
Purchase of treasury shares (55.2)
Sale of treasury shares
Employee share based benefit programs
Change in minority interests
Change in liability to purchase minority interests
58.6
Other effects 0.0 0.0
Ownership-related changes 0.0 3.4
Balance as of 31-12-11 65.0 (50.8)
1 Vontobel Holding AG paid a dividend of CHF 1.40 (previous year CHF 1.40) per registered share with a par value of CHF 1.00 in May 2011.
2 The reduction was the result of the squeeze-out of minority shareholders of VT Finance AG in the course of the merger with VT Investment (Zurich) AG.
74 Vontobel Group, Annual Reports 2011

Capital reserve
Equity classified as a
liability to purchase
minority interests
Retained
earnings
Net unrealized
gains/(losses) on
available-for-sale
financial
investments
Currency
translation
adjustments
Statement of equity
Shareholders'
equity Minority interests Total equity
190.1 (0.1) 1,240.4 51.0 (13.3) 1,483.6 31.0 1,514.6
0.0 0.0
190.1 (0.1) 1,240.4 51.0 (13.3) 1,483.6 31.0 1,514.6
147.8 147.8 (0.5) 147.3
(32.9) (32.9) 0.0 (32.9)
0.0 0.0 0.0 0.0
11.0 11.0 0.0 11.0
(10.2) (10.2) 0.0 (10.2)
0.0 0.0 0.0 0.8 (32.9) (32.1) 0.0 (32.1)
0.0 0.0 147.8 0.8 (32.9) 115.7 (0.5) 115.2
(90.2) (90.2) 0.0 (90.2)
(83.2) 0.0 (83.2)
0.8 79.3 0.0 79.3
(1.3) 0.0 (1.3) 0.0 (1.3)
0.0 0.0 0.0 0.0 0.0 (30.9) 2 (30.9)
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
(0.5) 0.0 (90.2) 0.0 0.0 (95.4) (30.9) (126.3)
189.6 (0.1) 1,298.0 51.8 (46.2) 1,503.9 (0.4) 1,503.5
189.6 (0.1) 1,298.0 51.8 (46.2) 1,503.9 (0.4) 1,503.5
0.0 0.0
(0.2) (0.2) 0.1 (0.1)
189.6 (0.1) 1,298.0 51.8 (46.4) 1,503.7 (0.3) 1,503.4
113.7 113.7 0.1 113.8
(2.8) (2.8) 0.0 (2.8)
0.1 0.1 0.0 0.1
(20.8) (20.8) 0.0 (20.8)
2.8 2.8 0.0 2.8
0.0 0.0 0.0 (18.0) (2.7) (20.7) 0.0 (20.7)
0.0 0.0 113.7 (18.0) (2.7) 93.0 0.1 93.1
(90.5) (90.5) 0.0 (90.5)
(55.2) 0.0 (55.2)
2.7 61.3 0.0 61.3
(7.9) 0.0 (7.9) 0.0 (7.9)
0.0 0.0 0.0 0.0 0.0 0.2 0.2
(0.1) 0.1 0.0 0.0 0.0
(7.8) 0.0 0.0 0.0 (7.8) 0.0 (7.8)
(13.1) 0.1 (90.5) 0.0 0.0 (100.1) 0.2 (99.9)
176.5 0.0 1,321.2 33.8 (49.1) 1,496.6 0.0 1,496.6
Vontobel Group, Annual Reports 2011 75

Consolidated cash flow statement
76 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10
CHF mns CHF mns
Cash flow from operating activities
Group net profit (incl. minorities)
Reconciliation to net cash flow from operating activities
Non-cash positions in Group results
113.8 147.3
Depreciation and value adjustments of property, equipment and intangible assets 60.2 61.8
Credit loss expense (0.1) 0.6
Income from investments in associates (0.2) (0.1)
Deferred taxes (3.3) (4.6)
Change in provisions 1.9 1.6
Net income from investing activities (10.1) 30.8
Other non-cash income
Net (increase)/decrease in assets relating to banking activities
1.7 0.0
Due from/to banks, net (1,127.7) (129.9)
Reverse-repurchase agreements, cash collateral for securities borrowing (801.0) 0.0
Trading positions and replacement values, net 685.2 (77.7)
Other financial assets/liabilities at fair value, net 7.3 (279.4)
Due from/to customers, net 2,670.6 (90.2)
Accrued income, prepaid expenses and other assets
Net increase/(decrease) in liabilities relating to banking activities
19.7 (35.8)
Repurchase agreements, cash collateral for securities lending 0.0 0.0
Accrued expenses, deferred income and other liabilities (14.6) 90.4
Taxes paid (50.5) (6.5)
Cash flow from operating activities 1,552.9 (291.7)
Cash flow from investing activities
Investments in subsidiaries and associates 0.0 0.0
Disposal of subsidiaries and associates 0.0 0.0
Purchase of property, equipment and intangible assets (55.3) (41.0)
Disposal of property, equipment and intangible assets 32.0 0.0
Investment in financial instruments (582.6) (1,806.8)
Divestment of financial instruments 575.3 1,595.7
Cash flow from investing activities
Cash flow from financing activities
(30.6) (252.1)
Net movements in treasury shares (7.7) (6.0)
Capital increase/(decrease) 0.0 0.0
Dividends paid (90.5) (90.2)
Issued debt instruments 0.0 (25.0)
Change in minority interests 0.0 (30.9)
Cash flow from financing activities (98.2) (152.1)
Effects of exchange rate differences (2.2) (12.4)
Net increase/(decrease) in cash and cash equivalents 1,421.9 (708.3)
Cash and cash equivalents, beginning of the year 3,037.9 3,746.2
Cash and cash equivalents as at the balance sheet date 4,459.8 3,037.9

Consolidated cash flow statement
31-12-11 31-12-10
CHF mns CHF mns
Cash and cash equivalents comprise at year end
Cash 2,999.6 1,457.6
Money market paper with original time to maturity up to 3 months 0.0 0.0
Due from banks on demand 1,460.2 1,580.3
Total 4,459.8 3,037.9
Further information:
Dividends received 28.9 30.3
Interest received 299.0 258.2
Interest paid 12.3 5.0
Vontobel Group, Annual Reports 2011 77

Notes to the consolidated financial statements
Accounting principles
78 Vontobel Group, Annual Reports 2011
1. Basis of presentation
Vontobel Group’s consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS), which are published by the International Accounting
Standards Board (IASB). The accounting standards applied are the same as in the consolidated
financial statements dated 31 December 2010, the only exceptions being the changes referred
in section 4.
2. Estimates, assumptions and the exercising of discretion by management
In the application of the accounting principles, management is required to make numerous estimates
as well as assumptions and discretionary decisions that influence the level of reported assets
and liabilities and expenses and income, as well as the disclosure of contingent assets and
contingent liabilities. The Vontobel Group is convinced that – in all material respects – these consolidated
financial statements provide a true and fair view of its financial position, its results of
operations and its cash flows. Management reviews its estimates and assumptions on a continual
basis and adapts them in line with new findings and conditions.
Estimates and assumptions are mainly contained in the following areas of the consolidated financial
statements and are disclosed in the corresponding notes to the consolidated financial statements:
fair value of financial instruments, share-based payment, provisions, income taxes, pension
plans, and goodwill and other intangible assets.
3. Summary of the most important accounting principles
3.1 Consolidation principles
Subsidiaries
The consolidated financial statements comprise the accounts of Vontobel Holding AG and its
subsidiaries. All subsidiaries directly or indirectly controlled by the Vontobel Holding AG are consolidated.
Acquired subsidiaries are consolidated from the date on which control is transferred to
the Vontobel Group. Changes to investments in subsidiaries are recorded as transactions in shareholders’
equity provided the Vontobel Group retains control of the subsidiary. Subsidiaries that
are sold are consolidated until the date on which control is lost. If the Vontobel Group loses control
of a subsidiary, any investment that is retained in the former subsidiary is recognized as an
interest in an associate or as a financial instrument in accordance with IAS 39.
The acquisition of a subsidiary is accounted for using the purchase method. The acquisition costs
are measured at the fair value of the consideration at the acquisition date. Previously held equity
interests in the acquiree that are treated as financial instruments in accordance with IAS 39 or as
an associated company are measured at fair value at the acquisition date and any gain or loss is
recorded in the income statement. The identifiable assets acquired and liabilities and contingent
liabilities assumed are recognized at fair value at the acquisition date. A minority interest in the
acquiree is measured either at fair value or at its proportionate interest in the fair value of the net
assets acquired; either method can be exercised on a transaction-by-transaction basis. If the aggregate
of the fair value of the consideration, the previously held equity interests and the minority
interests measured according to the chosen method, as detailed above, exceeds the fair value
of the net assets acquired, the difference between the two amounts is recorded as goodwill. If the
opposite applies, the difference is immediately recorded in the income statement. The costs directly
attributable to the acquisition (e.g. consulting and audit costs) are charged to the income
statement.
The effects of intra-Group transactions are eliminated in the consolidated financial statements.
Shareholders’ equity, net profit and comprehensive income attributable to minority interests are
reported separately in the consolidated balance sheet and statement of comprehensive income.

Associates
Companies over which the Group can exert significant influence are accounted for using the
equity method. As a rule, influence is deemed significant when the Group holds 20% to 50% of
voting rights.
According to the equity method of accounting, the interest acquired in a company is stated at
cost in the balance sheet upon acquisition. After the acquisition, the book value of the associated
company is increased or reduced, depending on the Group’s share of the comprehensive income
and the ownership-related changes in the shareholders’ equity of the associated company.
3.2 General principles
Foreign currency translation
The Group companies prepare their financial statements in the respective functional currency.
Transactions in a currency other than the functional currency are recorded by the companies at
the exchange rate on the date of the transaction. Exchange differences arising between the date
of a transaction and its subsequent settlement are recognized in the income statement. At the
balance sheet date, monetary assets and liabilities denominated in a foreign currency are translated
into the functional currency using the closing exchange rates, unrealized exchange differences
are recognized in the income statement. Non-monetary items carried at historical cost in a
foreign currency are translated into the functional currency at the historical exchange rate. Nonmonetary
items carried at fair value in a foreign currency are translated into the functional currency
at the closing exchange rates. Any unrealized gains and losses resulting from the foreign
currency translation are recorded in the income statement in the case of trading portfolio assets
and other financial instruments at fair value and in other comprehensive income in the case of
available-for-sale financial assets.
When drawing up the consolidated financial statements, the balance sheets of Group companies
that are denominated in a foreign currency are translated into Swiss francs at the closing
exchange rates. Average exchange rates for the period under review are used for items of the
income statement, other comprehensive income and cash flows. Exchange differences arising
from the use of closing exchange rates and average exchange rates are recognized as currency
translation differences in other comprehensive income. On the loss of control of a subsidiary, the
currency translation differences previously recognized in other comprehensive income are reclassified
from other comprehensive income to the income statement.
Business segments
External segment reporting reflects the organizational structure of the Vontobel Group as well as
internal management reporting, which forms the basis for the assessment of the financial performance
of the segments and the allocation of resources to the segments. The Group comprises
three business units – Private Banking, Investment Banking and Asset Management – which reflect
the types of products and services offered to clients and constitute the operating and reportable
segments as defined in IFRS 8. The support units Operations, Finance & Risk und Group
Services supply core services to the business units and are grouped within the Corporate Center.
Income, expenses, assets and liabilities are allocated to the business units on the basis of client
responsibility or according to the principle of origination. Items that cannot be allocated directly
to the business units are reported in the Corporate Center accounts. The Corporate Center also
includes consolidating entries.
The costs of the services supplied internally are reported in the item “Services from/to other
segment(s)” as a reduction in costs for the service provider and as an increase in costs for the
recipient, based on agreements that are renegotiated periodically according to the same principle
as if they were concluded between independent third parties (“at arm’s length”).
Cash and cash equivalents
Cash and cash equivalents in the cash flow statement include cash (petty cash, postal check account
deposits, giro or demand deposits at the Swiss National Bank and foreign central banks as
well as clearing credit balances at recognized clearing centres and clearing banks), receivables due
from banks on demand as well as available-for-sale money market paper in the balance sheet
item “Financial investments” with an original term of a maximum of three months.
Notes to the consolidated financial statements
Accounting principles
Vontobel Group, Annual Reports 2011 79

Notes to the consolidated financial statements
Accounting principles
80 Vontobel Group, Annual Reports 2011
Accrual of earnings
Income from services rendered over a specific period of time is recorded on a pro rata basis for
the duration of the service. This includes asset management fees and custody fees. Profit-based
income and performance-based income are not recorded until all of the relevant criteria have
been met. This type of income may, for example, be generated in corporate finance and in the
business with hedge funds. Interest income is accrued as earned. Dividends are recognized when
payment is received.
3.3 Financial instruments
Initial recognition
Purchases and disposals of financial assets are recognized in the balance sheet on the trade date.
At the time of initial recognition, financial assets or financial liabilities are classified in the respective
category according to IAS 39 criteria and measured at the fair value of the consideration
given or received, including directly attributable transaction costs. In the case of trading portfolio
assets and other financial instruments at fair value (“Fair value through profit and loss”), the
transaction costs are immediately recognized in the income statement.
Determining fair value and recognition of “Day 1 Profit”
Please refer to note 34 “Fair value of financial instruments” and note 35 “Level 3 instruments”
for information on the determination of the fair value of financial instruments, the fair value hierarchy,
the valuation methods and the day 1 profit.
Trading portfolio assets and liabilities and other financial instruments at fair value
(“fair value through profit and loss”)
Financial assets or financial liabilities held for trading purposes are measured at fair value in
“Trading portfolio assets” or “Trading portfolio liabilities”. Gains and losses on the sale and redemption
of such instruments, interest and dividend income as well as all changes in fair value are
recognized in “Trading income”.
Provided the criteria defined by IAS 39 have been met, a financial instrument can be assigned to
the category “Other financial instruments at fair value” upon initial recognition and carried in the
balance sheet as “Other financial assets at fair value” or “Other financial liabilities at fair value”.
The corresponding accounting treatment in the income statement is analogous to the treatment
of trading portfolio assets and liabilities.
Within the scope of the issuing business, the Vontobel Group reports structured products containing
a debt instrument and an embedded derivative in the balance sheet item “Other financial
liabilities at fair value” and reports interest rate instruments that were acquired for the purpose
of reinvesting the issue proceeds and hedging the interest rate risks of these structured products
in the balance sheet item “Other financial assets at fair value”. In addition, certain designated
portfolios of equity instruments and shares in funds outside the trading business are also reported
in the item “Other financial assets at fair value”.
Based on a documented strategy, the management, valuation and reporting to the senior management
of both structured products and designated interest rate instruments from the issuing
business as well as of equity instruments and shares in funds outside the trading business is performed
on a fair value basis. This allows for the consistent treatment of issued products and
designated hedging transactions in the issuing business.
Available-for-sale financial assets
Financial assets that are available for sale are stated at fair value. Unrealized gains and losses are
recognized in other comprehensive income until the financial assets are sold or determined to be
impaired. Foreign currency translation gains and losses are recorded as trading income in the case
of monetary items such as debt instruments and are recorded as a component of the change in
fair value in other comprehensive income in the case of non-monetary items such as equities.
Equities and similar securities and rights are considered impaired if the acquisition cost may not
be recovered due to a significant or prolonged decline in fair value. A debt instrument is considered
impaired if the creditworthiness of the corresponding debtor significantly deteriorates or if
other specific signs of difficulty are observable. If an available-for-sale asset is determined to be
impaired, the cumulative unrealized loss previously recognized in other comprehensive income is
reclassified to the item “Other income” in the income statement. Impairment reversals on debt
instruments are recognized in “Other income”, impairment reversals on equities in other compre-

hensive income. This also applies if an impairment recorded in the first half of the year is partly or
completely offset by a reversal of impairment in the second half of the year. On the disposal of a
financial asset that is available for sale, the cumulative unrealized gain or loss previously recognized
in other comprehensive income is transferred to the item “Other income” in the income
statement. Gains or losses from partial disposals are calculated using the average cost method.
Interest is accrued in the period in which it is earned using the effective interest method and
recognized together with dividend income in the item “Net interest income”.
Loans granted
Loans are reported in the balance sheet at amortized cost using the effective interest method less
any specific allowances for credit risks. Based on the size and structure of the credit portfolio, as
well as the Vontobel Group’s policy of essentially only granting credit on a secured basis or to
counterparties with very high creditworthiness, no general allowances are made for credit risks.
A loan is considered impaired when it is likely that the amount due according to the contractual
terms cannot be entirely collected. An impairment is recorded under “Valuation adjustments,
provisions and losses” and corresponds to the difference between the book value of the loan and
the present value of the amount that is expected to be collected – calculated on the basis of the
original effective interest rate on the loan – taking account of the counterparty risk and the net
proceeds from the liquidation of any collateral. The reasons for impairment could be specific to
the relevant counterparties or countries.
Interest income on loans that are not overdue is accrued in the period in which it is earned and
recorded in “Net interest income”. Increases in or reversals of impairment losses are recognized
in “Value adjustments, provisions and losses”. As a rule, they are derecognized at the point in
which a legal title confirms the conclusion of the liquidation process.
Securities lending and borrowing transactions
The transfer of securities in the case of securities lending and borrowing transactions (due to the
actual lending or borrowing transaction or as collateral) is only recorded in the balance sheet if
the risks and rewards of ownership of the securities are also transferred. In securities lending
agreements, cash collateral received is recorded in the balance sheet as “Cash collateral from
securities lending agreements”. In securities borrowing agreements, cash collateral provided is
recorded in the balance sheet as “Cash collateral for securities borrowing agreements”.
Securities lent or delivered as collateral for which the counterparty has an unlimited right to resell
or pledge are reported in the balance sheet item “Securities lent or delivered as collateral”.
Fees and interest from securities lending and borrowing are accrued in interest income or interest
expense in the period in which they are incurred.
Repurchase and reverse-repurchase agreements
Repurchase and reverse-repurchase agreements are treated as secured financing agreements.
The transfer of securities in the case of repurchase and reverse-repurchase agreements is only
recorded in the balance sheet if the risks and rewards of ownership of the securities are also
transferred.
In reverse-repurchase agreements, cash collateral provided is stated in the balance sheet as “Cash
collateral for reverse-repurchase agreements”. In repurchase agreements, the cash collateral received
is stated in the balance sheet as “Cash collateral from repurchase agreements”.
Delivered securities for which the counterparty has an unlimited right to resell or pledge are reported
in the balance sheet item “Securities lent or delivered as collateral”.
Interest income from reverse-repurchase agreements and interest expense from repurchase
agreements are accrued in the period in which they are incurred.
Derivative financial instruments
Derivative instruments are stated at fair value and presented as positive and negative replacement
values. The Group offsets positive and negative replacement values in the case of transactions
with the same counterparty, provided that legally enforceable netting agreements are in
place and the intention to offset exists and the Group intends to settle on a net basis or to settle
the negative replacement value and realize the positive replacement value simultaneously. Realized
and unrealized gains and losses are recognized in the item “Trading income”.
Notes to the consolidated financial statements
Accounting principles
Vontobel Group, Annual Reports 2011 81

Notes to the consolidated financial statements
Accounting principles
82 Vontobel Group, Annual Reports 2011
The Group may apply hedge accounting if the criteria specified in IAS 39 are met. 1 At the time a
hedge transaction is made, it is determined whether it is a hedge of the fair value of a balance
sheet item or an unrecognized firm commitment (fair value hedge) or a hedge of the cash flows
from a balance sheet item or a highly probable future transaction (cash flow hedge).
In a fair value hedge, the change in fair value of the hedging instrument is reported in the income
statement. The change in fair value of the hedged item attributable to the hedged risk adjusts the
carrying amount of the hedged item and is also recognized in the income statement.
In a cash flow hedge, the change in fair value of the effective portion of the hedging instrument
is recognized in other comprehensive income, while the change in fair value of the ineffective
portion of the hedging transaction is recorded in the income statement. Gains or losses from the
hedging instrument reported in other comprehensive income are reclassified from other comprehensive
income to the income statement in the same periods in which the hedged cash flows of
the underlying transactions are recognized in the income statement.
Issued debt instruments
Issued debt instruments are carried in the item “Issued debt instruments” at amortized cost using
the effective interest rate method provided they were not designated as “Other financial liabilities
at fair value” upon initial recognition.
Debt instruments with embedded derivatives on own shares are split up into these two components
upon issue and subsequently recognized as an issued debt instrument and as derivatives on
own shares.
Financial guarantees
After initial recognition, a financial guarantee is reported in the balance sheet at the higher of the
following two values: the amount of the provision that has to be recorded for the financial guarantee
if an outflow of funds is probable, the level of which can reliably be estimated, and the
amount that was originally recorded less the cumulative amortization recorded in the income
statement.
3.4 Other basic principles
Own shares and derivatives on own shares
Vontobel Holding AG shares held by the Group are deducted from shareholders’ equity in the
item “Treasury shares” at weighted average cost. Changes in fair value are not recorded. The
difference between the sales proceeds of treasury shares and the corresponding acquisition cost
is recorded in “Capital reserve”.
Derivatives on own shares that must be physically settled qualify as equity instruments and are
stated in shareholders’ equity under “Capital reserve”. Changes in fair value are not recognized.
Upon settlement of a contract, the sale proceeds net of costs are recorded under “Capital reserve”
or the purchase price is recorded under “Treasury shares”.
Derivatives on own shares that must be settled in cash or that offer a choice of settlement method
are treated as derivative financial instruments.
An exception are put options written on own shares and forward contracts to purchase own
shares in which physical settlement has been agreed on or offered as an alternative. In both
cases, the discounted strike price or forward price upon execution of the contract is deducted
from shareholders’ equity as a liability. This liability is increased during the contract term up to the
strike price or forward price using the effective interest rate method. Upon settlement of a contract,
the liability is either derecognized or transferred to shareholders’ equity.
Share-based payment
According to the bonus model of the Vontobel Group, the employees of most Group companies
are offered an annual bonus as well as a performance-related future allocation of shares. Employees
have the right and/or the obligation to draw part of their annual bonus in shares of Vontobel
Holding AG instead of in cash. The fair value of these shares at grant date is charged as personnel
expense. Employees who elect to draw part of their annual bonus in shares are entitled to receive
1 No hedge accounting was applied neither in the year under review nor in the previous year

additional Vontobel Holding AG shares after three years have lapsed provided certain criteria with
regard to operating performance have been met. Market-related variables are fixed at the time
the rights to receive these so-called performance shares are granted and are not adjusted during
the vesting period. The share price used to determine personnel expense is calculated on the
basis of the fair value of the Vontobel Holding AG share at this time, less the present value of the
dividends expected during the vesting period. The variables that cannot be observed in the market,
such as the future performance of the business and the probability that employees with
rights to receive performance shares will leave the company early, are continually reassessed by
management during the vesting period based on current developments and conditions. The estimated
cost of the performance shares for the entire vesting period on the balance sheet date is
charged as personnel expense on a pro rata temporis basis.
Property and equipment
Property and equipment include bank buildings, leasehold improvements, information technology
and telecommunications equipment, software (IT core systems and other software, incl. software
in development) and other fixed assets. The acquisition or production costs of property and
equipment are capitalized if the Group is likely to obtain future economic benefits from them and
the costs can be both identified and reliably determined. Property and equipment are depreciated
on a straight-line basis over their estimated useful life as follows:
Bank buildings max. 40 years
Leasehold improvements max. 10 years
Information technology and telecommunications equipment 3 years
IT core systems max. 10 years
Other software 3–5 years
Other fixed assets 2–5 years
Property and equipment are reviewed for impairment if events or circumstances indicate that the
carrying amount may be impaired. If the carrying amount exceeds the recoverable amount, an
impairment loss is recorded. Any reversals of impairments at a later date will be recognized in the
income statement.
Goodwill and other intangible assets
The goodwill arising from the acquisition of a subsidiary (see section 3.1 “Consolidation principles”
for details) is recognized as an asset in the balance sheet and assigned to one or more cashgenerating
units and is, in principle, subject to an annual impairment test. If events or a change
of circumstances indicate a possible impairment, the test is carried out more frequently to determine
whether the book value of the relevant cash-generating unit exceeds its recoverable
amount. The recoverable amount is the higher of the fair value less costs to sell and the value in
use. If the book value of the cash-generating unit exceeds the recoverable amount, a goodwill
impairment is recorded. Reversals of impairments are not recorded. This also applies if an impairment
recorded in the first half of the year is partly or completely offset by a reversal of impairment
in the second half of the year.
Other intangible assets include the client relationships and brands acquired during business combinations.
They are depreciated on a straight-line basis over the useful life of five to ten years
(client relationships) or ten years (brands). The other intangible assets are tested for impairment
if events or circumstances indicate that the book value may be impaired. If the book value exceeds
the recoverable amount, an impairment loss is recorded. Any reversals of impairments at a
later date will be recognized in the income statement. No other intangible assets with an indefinite
useful life are capitalized in the Vontobel Group’s balance sheet.
Leasing
In the case of operating leasing, the leased assets are not reported in the Vontobel Group’s balance
sheet since the related ownership rights and obligations remain with the lessor. The expenses
resulting from operating leasing are recorded in the position “General expense”. Vontobel
does not have any significant finance leasing agreements.
Notes to the consolidated financial statements
Accounting principles
Vontobel Group, Annual Reports 2011 83

Notes to the consolidated financial statements
Accounting principles
84 Vontobel Group, Annual Reports 2011
Income taxes
Current income taxes are calculated on the basis of the applicable tax laws in individual countries
and recognized as an expense in the period in which the related profits are made. Assets or liabilities
related to current income taxes are reported in the balance sheet in the items “Current tax
assets” or “Current tax liabilities”.
Tax effects arising from temporary differences between the carrying amounts of assets and liabilities
in the Group’s balance sheet and their corresponding tax values are recognized, respectively,
as “Deferred tax assets” and “Deferred tax liabilities”. Deferred tax assets arising from temporary
differences and from loss carryforwards eligible for offset are capitalized if it is likely that sufficient
taxable profits will be available against which those temporary differences or loss carryforwards
can be offset. Deferred tax assets and deferred tax liabilities are calculated at the tax
rates expected to apply in the period in which the tax assets will be realized, or the tax liabilities
settled.
Tax assets and tax liabilities are offset against each other when they refer to the same taxable
entity, concern the same tax authority, and an enforceable right to offset exists.
Current and deferred taxes are credited or charged to other comprehensive income or shareholders’
equity if the taxes refer to items that are credited or charged to other comprehensive income
or to shareholders’ equity in the same or a different period.
Pension funds
The Group operates a number of pension plans for its employees in Switzerland and in other
countries. They include both defined benefit and defined contribution plans.
The pension plans in Switzerland have been set up according to the Swiss method of defined
contributions but do not fulfil all the criteria of a defined contribution pension plan according to
IAS 19. For this reason, the Swiss pension plans are treated as defined benefit plans in the consolidated
financial statements.
In the case of defined benefit plans, the pension obligations and expenses are determined by
actuarial appraisals prepared by outside experts according to the projected unit credit method.
The appropriate calculations are performed on an annual basis. If the balance of the accumulated,
unrecognized actuarial gains or losses at the end of the preceding year surpasses both 10% of the
assets and 10% of the obligations of the pension plan, the part of the unrecognized actuarial
gains or losses that exceeds the higher of the two threshold values is recorded in the income
statement over the average remaining working lives of the employees.
If the total resulting from a pension fund surplus plus (less) actuarial losses (gains) that have not
yet been recognized and any service costs that have not yet been recognized is negative, a liability
for the corresponding amount is recognized in the Group’s balance sheet.
If the above total is positive, an asset is recognized in the Group’s balance sheet, which corresponds
to the lower of the following two values:
– the above total, or
– the total of the actuarial losses that have not yet been recognized and service costs that have
not yet been recognized, plus the economic benefit in the form of a future reduction in contributions.
No actuarial calculations are required in order to record defined contribution plans in the balance
sheet. The contributions to these types of pension plans are recorded in the income statement
when the employees render the corresponding services, which is generally in the year in which
the contributions are paid.
Provisions
A provision is recognized if the Group has, as a result of a past event, a current liability at the
balance sheet date that will probably lead to an outflow of funds, the level of which can be reliably
estimated. The recognition and release of provisions are recorded in the item “Value adjustments,
provisions and losses”. If an outflow of funds is unlikely to occur or the amount of the
liability cannot be reliably estimated, a contingent liability is shown. If there is, as a result of a past
event, a possible liability as of the balance sheet closing date whose existence depends on future
developments that are not fully under the Vontobel Group’s control, a contingent liability is likewise
shown.

4. Changes in financial reporting
4.1 Changes in accounting principles
4.1.1 Standards and interpretations that have been implemented
The Vontobel Group applied the following new and revised standards and interpretations for the
first time in the financial year 2011:
IFRIC 14 – Prepayments of a Minimum Funding Requirement
IFRIC 14 is an interpretation of IAS 19 – Employee Benefits. The amendment to IFRIC 14 applies
in circumstances when a company is subject to minimum funding requirements for a defined
benefits plan and makes an early payment of contributions. According to the amendment to
IFRIC 14, the prepayments that are made to cover minimum funding requirements are always
recognized in the form of a future reduction in contributions when their economic benefit is determined.
The amendment to IFRIC 14 entered into effect on 1 January 2011 and did not have
any impact on the consolidated financial statements of the Vontobel Group.
Annual Improvement Project (publication 2010)
Following an amendment to IAS 1, the impact of the individual components of other comprehensive
income on equity components is now disclosed in the statement of changes in equity (always
on an after-tax basis). To ensure that it is reconcilable with the statement of comprehensive income,
the components of other comprehensive income are now also shown in the statement of
comprehensive income on an after-tax basis. The tax impact relating to the components of other
comprehensive income is shown in the notes. As part of the amendments to the statement of
changes in equity, the two line items “Purchase/sale of treasury shares” and “Income from sale
of treasury shares” have now been replaced with the two line items “Purchase of treasury shares”
and “Sale of treasury shares” to provide greater transparency. As a result, the impact of the purchase
and sale of treasury shares is now shown on a gross basis. As a result of a change in IFRS
7, it is now necessary to disclose the financial effect of the mitigation of credit risk on the maximum
credit risk. The corresponding information is presented in the 'Capital' section of the Notes
to the consolidated financial statements. The amendment to IAS 1 and IFRS 7 entered into effect
on 1 January 2011. This new presentation does not have any effect on the corresponding sums.
The figures for previous years have been adapted in line with the new presentation.
Other new standards and interpretations
The following new and revised standards and interpretations did not have any impact on the
Vontobel Group or were not relevant to the Vontobel Group when applied for the first time:
– IAS 24 – Related Party Disclosures
– IAS 32 – Classification of Rights Issues
– IFRS 1 – First-time Adoption of International Financial Reporting Standards
– IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments
4.1.2 Other changes
None.
4.2 Changes in presentation
None.
4.3 Changes in estimates
No material changes in estimates.
Notes to the consolidated financial statements
Accounting principles
Vontobel Group, Annual Reports 2011 85

Notes to the consolidated financial statements
Accounting principles
86 Vontobel Group, Annual Reports 2011
5. Standards and interpretations that have not yet been implemented
Various new and revised standards and interpretations have to be applied with effect from
1 January 2012 or a later date. The Vontobel Group has not made use of the option of applying
them prior to the effective dates.
IFRS 9 – Financial Instruments – Classification and Measurement
The publication of IFRS 9 represents the completion of the first phase in a project to replace IAS
39. The IASB also intends to publish new regulations on determining the impairment of financial
instruments and on hedge accounting.
Under IFRS 9, all financial assets are measured either at fair value or at amortized cost. Debt instruments
that are held with the aim of generating contractual cash flows that solely represent
the repayment of principal and interest are measured at amortized cost. All other debt instruments
are measured at fair value and all income components are recorded in the income statement.
All equity instruments are measured at fair value and, in principle, changes in their fair
value are recorded in the income statement. If an equity instrument is not held for trading purposes,
it can irrevocably be classified as an instrument that is measured at fair value the first time
it is recorded in the balance sheet, as a result of which all income components – with the exception
of dividends – are recorded in other comprehensive income.
IFRS 9 incorporates the rules on the classification and valuation of financial liabilities set out in IAS
39. A new feature in IFRS 9 is that the impact of the change in own credit risk from financial liabilities,
for which the fair value option is applied, is now recorded in other comprehensive income.
However, if this treatment would create or increase an accounting mismatch in the income statement,
the impact of the change in own credit risk should continue to be recorded in the income
statement according to the method used in IAS 39.
These changes have to be applied from 1 January 2015. The Vontobel Group is currently analyzing
the impacts of the new regulations.
IFRS 10 – Consolidated Financial Statements
The new standard replaces IAS 27 – Consolidated and Separate Financial Statements and SIC-12
Consolidation – Special Purpose Vehicles. It provides a uniform definition of the concept of control
and thus creates a consistent basis for establishing the existence of a parent/subsidiary relationship
and the related definition of the scope of consolidation.
A company (the investor) exercises control over another company (the investee) if all three of the
following requirements are met: the investor has decision-making powers over the investee, is
exposed to variable returns from its involvement in the investee and has the ability to use its
power over the investee to affect the amount of its returns. Decision-making powers are understood
as the ability to direct those activities of a company that significantly affect its economic
benefits. The components of the returns can be only positive, only negative or both positive and
negative. The decision-making powers are determined on the basis of current facts and circumstances
and are assessed on a continuous basis. They may depend on voting rights or rights arising
from contractual arrangements (or a combination of both). The investor basically exercises
control if it holds more than 50% of voting rights in the investee and no other agreements or
factors exist to the contrary. IFRS 10 sets out in concrete terms a series of questions that were not
previously addressed, e.g. substantive rights and protective rights of third parties, principal/agent
relationships and the concept of de-facto control.
IFRS 10 has to be applied with effect from 1 January 2013. The Vontobel Group is currently
analyzing the impacts of the new provisions.
IFRS 12 – Disclosure of Interests in Other Entities
The new standard sets out the disclosure requirements that apply to interests in subsidiaries, associates,
joint agreements and unconsolidated structured entities. This information is intended to
enable users of financial statements to assess the nature of, and risks associated with, interests in
other entities, as well as the financial effects of those interests.
IFRS 12 has to be applied with effect from 1 January 2013. The Vontobel Group is currently analyzing
the impacts of the new provisions.

IFRS 13 – Fair Value Measurement
The new standard sets out a uniform and consistent framework for measuring fair value. IFRS 13
applies when another standard requires or permits fair value measurements and/or disclosures
about fair value measurements. Fair value is defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. Fair value is thus a market-based measurement and not an entity-specific
measurement. Accordingly, the company's intention to hold a financial asset until maturity is not
relevant when determining fair value.
If a company holds financial assets and financial liabilities with (partly) offsetting positions in
market risks or counterparty credit risks, it has the option of measuring fair value based on the
assumption that a net position exists for a particular risk exposure in the sale of assets or the
transfer of liabilities, if certain criteria are met, e.g. this group of financial instruments is managed
on the basis of net risk positions.
IFRS 13 has to be applied with effect from 1 January 2013. The Vontobel Group is currently analyzing
the impacts of the new provisions.
IAS 1 – Changes to the Presentation of Other Comprehensive Income
The amended standard requires the components of other comprehensive income to be divided
into two categories: items that will be reclassified (or 'recycled') to profit and loss at a future point
in time and items that will never be reclassified to profit and loss.
The amendments have to be applied with effect from 1 January 2013. They will lead to changes
in the way other comprehensive income is presented but the amount of the corresponding items
will not alter.
IAS 19 – Employee Benefits – Amended Standard resulting from the Post-Employment Benefits
and Termination Benefits Projects
The amended standard requires the immediate recognition of actuarial gains and losses in other
comprehensive income. The corridor approach previously used by the Vontobel Group is no longer
permitted. This will lead to an increase in the volatility of consolidated shareholders' equity and
other comprehensive income. In addition, the determination of the personnel expense for defined
benefit plans has altered so that instead of the interest expense on pension liabilities and the
expected return on plan assets, net interest expense or net interest income are now taken into
account. This is calculated on the basis of the interest on the net assets or net liabilities of a defined
benefit plan using the discount rate previously used to discount the pension liability. Since
the discount rate at the Vontobel Group is lower than the expected return on the plan assets, the
personnel expense relating to defined benefits plans will increase moderately in future as a result
of this amendment.
The amendments have to be applied with effect from 1 January 2013. The Vontobel Group is
currently analyzing the impacts of the other new provisions of IAS 19.
Other new standards and interpretations
Based on initial analyses, the following new and revised standards and interpretations are not
expected to have any significant impact on the Vontobel Group’s net profit, comprehensive income
and shareholders’ equity or are not expected to be relevant to the Vontobel Group:
– IFRS 1 – First-time Adoption of International Financial Reporting Standards – amendment relating
to severe hyperinflation
– IFRS 7 – Enhancing Disclosures about Transfers of Financial Assets
– IFRS7 / IAS 32 – Offsetting Financial Instruments
– IFRS 11 – Joint Arrangements
– IAS 12 – Deferred Tax: Recovery of Underlying Assets
– IAS 27 – Separate Financial Statements
– IAS 28 – Investments in Associates and Joint Ventures
– IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine.
Notes to the consolidated financial statements
Accounting principles
Vontobel Group, Annual Reports 2011 87

1. Risk policy
A conscious and prudent approach to risk is a prerequisite for the sustained, long-term success of
the Vontobel Group as an internationally oriented Swiss banking group specializing in wealth and
asset management and investment banking. The assumption of risk is an inherent part of the
activities of the three business units Private Banking, Investment Banking and Asset Management.
The Group-wide risk culture, which is firmly established at every level of the company and
is reviewed on an ongoing basis, ensures that risks are recognized and that appropriate control
and mitigation mechanisms are implemented and refined.
In its risk policy, the Vontobel Group defines the relevant risk categories and the corresponding
risk profiles, as well as the powers of authorization, organizational structure, methods and processes
relating to the management and control of risks. The appropriateness of the risk policy is
reviewed at least once annually by the Board of Directors. The Risk Management and Risk Control
units ensure that all risks are managed and monitored with the utmost care.
The most important principles regarding risk management and control are:
– Clearly delegated responsibilities and authority
– Alignment of risk profile and risk capacity
– Independent control functions and adequate human and technical resources
– Adequate internal control systems
– Transparency regarding the risks taken.
Clear responsibilities and powers of authorization
Organizational aspects and powers of authorization relating to the management and control of
all risks have been defined as follows:
– The Board of Directors has the ultimate responsibility for risk issues.
– The Group Executive Management is responsible for the operational implementation of our
risk policy and for the management and control of all risks.
– The heads of the business units and support units are responsible for managing risks in accordance
with the relevant qualitative and quantitative guidelines.
– The “Risk Control” unit is responsible for risk control.
Alignment of risk profile and risk capacity
Comprehensive, combined Group-wide stress tests are conducted on a regular basis. In addition
to market and credit risks (i.e. position risks), these tests assess operational risks as well as risks
relating to income and costs. The results of the stress tests are compared with the Vontobel
Group’s risk capacity to ensure that its risk profile does not exceed the available risk capacity and
that any adjustments are made promptly.
Independent control functions as well as adequate human and technical resources
The Risk Control unit reports directly to the Head of the Finance & Risk support unit, who is independent
from the business units and is a member of the Group Executive Management.
Risk Control is organized into various teams, which are responsible for the subsequent independent
monitoring of market risks, credit and counterparty risks and operational risks in general, as
well as the risks that result when client assets are not invested in accordance with internal or external
regulations (investment control) in particular.
The Compliance and Legal units have an important role to play in the area of operational risk in
particular. They also report to the Head of the Finance & Risk support unit.
The Risk Control unit is primarily responsible for identifying risks related to ongoing business
activities, changes in the environment (markets or regulation) or the launch of new activities (new
products and services or new markets). Secondly, it records the identified risks using suitable
methods and quantifies them using measuring systems as far as possible. These risks are then
consolidated, analyzed and monitored. The Vontobel Group employs conventional methods and
procedures to achieve this (see the following sections on the individual risk categories). Market
and credit risks are monitored on a daily basis and compared with the limits that have been set.
If any limits are exceeded, this is reported immediately and the position is monitored closely until
the additional exposure is reduced. The Risk Control unit’s third responsibility is to transparently
present the risks that have been assumed.
Notes to the consolidated financial statements
Risk management and risk control
Risk management
and risk control
Vontobel Group, Annual Reports 2011 89

Notes to the consolidated financial statements
Risk management and risk control
90 Vontobel Group, Annual Reports 2011
Adequacy of internal control systems
The management and control of all risks is essentially performed using a holistic approach referred
to as the Internal Control System (ICS). In accordance with the FINMA circular 08/24
“Supervision and Internal Control at Banks”, as well as the provisions governing control processes
during the production of financial statements according to the Swiss Code of Obligations,
existing control processes are regularly reviewed and further optimized. As well as ensuring compliance
with legal and regulatory requirements, the focus is on ensuring the effectiveness, efficiency
and reliability of business processes as well as of the financial information and risk data.
Transparency regarding the risks taken
The Vontobel Group’s risk policy distinguishes between market, liquidity, credit, operational and
reputational risks. The latter are considered to be of particular and overriding importance. The
Board of Directors, Group Executive Management and employees know that the good reputation
of the Vontobel Group and the trust which is placed in it are based on their ability to strike a balance
between profit orientation, risk tolerance and compliance with mandatory rules of conduct
each day.
The transparent presentation of the risk profile in consolidated form and of the individual risks
that have been assumed in detailed form is a core function of the Risk Control team (see above).
The front office areas that are responsible for risk management are informed about market and
credit risks on a daily basis mainly via suitable reports. However, reports on operational risks are
provided at appropriate intervals rather than on a daily basis.
The Group Executive Management and the Board of Directors are informed in full about any
changes in individual risk factors and the Group’s risk profile via consolidated periodic risk reports.
The valuation principles are set out in note 34.
2. Market risk
2.1 General information
Market risk refers to the risk of losses as a result of changes in market parameters such as interest
rates, credit spreads, foreign exchange rates, stock prices or commodities prices and the corresponding
volatilities. Market risks are relevant in various areas, both within and outside Investment
Banking.
In Investment Banking, the major proportion of the risk positions originates from the business
with proprietary products such as warrants, certificates and structured products, as well as the
hedging of these instruments. Financial Products of Investment Banking is responsible for these
positions, as well as for foreign exchange and money market trading, the management of the
foreign exchange position and collateral trading (repo transactions and securities lending and
borrowing transactions).
Market risks are limited and monitored using a multi-level system of limits. In addition to the
Value at Risk limits and stress exposure limits prescribed at a global level and for each trading unit,
this system defines a wide range of detailed sensitivity limits and volume limits in order to control
and limit risks.
Positions involving market risks are also held outside Investment Banking. These financial investments
consist of broadly diversified portfolios and non-consolidated holdings, with the allocation
to equities being maintained at a consistently low level. The financial investments are classified as
“available-for-sale”. Non-strategic exposures in equity instruments and investment funds (incl.
alternative investments) are classified as “Other financial assets at fair value through profit and
loss” (see note 14). To quantify and limit risk, the same measurement methods – i.e. Value at Risk
and stress exposure – are used for these positions at consolidated level as for the positions held
by Investment Banking.
Further information on market risks at overall balance sheet level (interest rate risks and
currency risks) can be found in section 2.3 “Market risks related to the balance sheet structure”.

2.2 Market risks related to Investment Banking and other securities holdings
2.2.1 Value at Risk (VaR)
The management and control of market risks for all the positions in Investment Banking as well
as for securities holdings outside Investment Banking is based on specific sensitivity and volume
limits as well as on Value at Risk and stress exposure measurements, in line with the general market
standard.
VaR is measured using the historical simulation method. All instruments are revalued based on
historical changes of the risk factors. As a result, the historically observed volatility of the individual
risk factors and the historically observed correlations between the individual risk factors are
imputed directly into the VaR calculations. The confidence level is 99%, the holding period is set
at one day and the historical period of observation to determine the time series relevant to VaR
extends over the last four years.
The following table shows the VaR for the Vontobel Group as a whole, as well as for Investment
Banking. The average VaR for the year under review totalled CHF 27.0 mn for the Vontobel
Group as a whole, of which CHF 23.1 mn related to Investment Banking (2010: average VaR of
CHF 27.4 mn for the Vontobel Group and of CHF 19.7 mn for Investment Banking).
The table also shows the relative importance of the VaR of the individual risk factors as a proportion
of total VaR. In the year under review, the largest proportion of average VaR was attributable
to interest rate risks and issuer-specific credit spread risks both in the Vontobel Group as a whole
and in Investment Banking. When interpreting the table, it should be noted that – depending on
the historically realized correlations between risk factors – individual risk factors may also display
positive risk values; these figures are shown in brackets in the following table.
Notes to the consolidated financial statements
Risk management and risk control
Vontobel Group, Annual Reports 2011 91

Notes to the consolidated financial statements
Risk management and risk control
92 Vontobel Group, Annual Reports 2011
35
30
25
20
15
10
5
0
Value at Risk (VaR) for Vontobel Group overall and for Investment Banking 1
Interests
incl. credit
Commo- 31-12-11
Equities2
spread Currencies dities3
Total
CHF mns CHF mns CHF mns CHF mns CHF mns
Vontobel Group: 6.0 21.5 0.4 (0.3) 27.6
Average 7.6 19.8 (0.8) 0.4 27.0
Minimum 5.5 8.1 (0.4) 0.4 13.6
Maximum
of which Investment
20.2 19.3 (1.7) 0.7 38.5
Banking 0.2 22.2 (1.6) 0.0 20.8
Average 1.2 22.5 (0.9) 0.3 23.1
Minimum 1.2 16.2 (0.7) 0.2 16.9
Maximum 1.3 32.1 (1.3) 0.3 32.4
Interests
incl. credit
Commo- 31-12-10
Equities2
spread Currencies dities3
Total
CHF mns CHF mns CHF mns CHF mns CHF mns
Vontobel Group: 17.4 17.6 0.7 0.4 36.1
Average 7.3 19.4 0.4 0.3 27.4
Minimum 6.5 12.4 0.6 0.0 19.5
Maximum
of which Investment
15.1 20.8 0.7 1.0 37.6
Banking 5.2 20.5 0.7 0.3 26.7
Average 1.1 17.9 0.4 0.3 19.7
Minimum 0.1 12.1 0.3 0.1 12.6
Maximum 4.5 20.7 1.2 0.5 26.9
1 99% confidence level; 1-day holding period; historical observation period of the last four years. The
contributions to the risk factors include both price and volatility risks.
2 Including positions in investment funds and hedge funds
3 Including precious metals
The graph below shows the development over time of 1-day VaR for the positions of Investment
Banking/Financial Products of Vontobel Group. There is also a graph to show the frequency distribution
of daily gains and losses for the years 2011 and 2010.
Value at Risk (VaR) 1 for the positions of Investment Banking/Financial Products of Vontobel
Group (CHF mns)
31-03-11 30-06-11 30-09-11 31-12-11
1 99% confidence level; 1-day holding period; last four years historical observation period.

90
80
70
60
50
40
30
20
10
0
Frequency distribution of the gains and losses of the positions Investment Banking/
Financial Products 1 (number of days)
10.00
■ 2011 ■ 2010
1 The reported gains and losses represent actual income incl. spreads as well as income from intraday
trading (in CHF mns).
2.2.2 Stress exposure
In addition to the VaR limits based on a 99% confidence level, stress exposure limits have also
been defined. The corresponding stress tests are conducted on a daily basis. All positions held by
Investment Banking and all other securities positions are re-evaluated in a specific number of
historical and institute-specific stress scenarios (with 1-day and 10-day holding periods) and the
scenario with the largest loss is subsequently defined as the stress exposure.
2.3 Market risks related to the balance sheet structure
The Treasury division is responsible for managing the balance sheet structure, capital and liquid
assets. Interest rate risks and currency risks are monitored and limited as part of the Group’s asset
and liability management (ALM) activities. Treasury is also responsible for securing refinancing
and monitoring liquidity risk on a continuous basis.
2.3.1 Interest rate risk
Interest rate and foreign-exchange risks arise in balance sheet management through differing
interest commitments and foreign currencies on the asset and liability side of the balance sheet
and of off-balance-sheet items. These risks are managed and monitored at an aggregated level.
The interest rate sensitivities of the market value of shareholders’ equity (and broken down to
show positions within and outside Investment Banking) are presented in the tables on the next
two pages. The table shows the gains and losses by currency and maturity range, assuming a
+/–100 basis point change in interest rates in accordance with the reporting of interest rate risks
prescribed by FINMA Circular 08/6. Assuming very conservative, additive aggregation between
individual currencies, the sensitivity to a +100 basis point change corresponds to CHF –1.3 mn for
the current year and CHF +2.2 mn for the previous year.
Notes to the consolidated financial statements
Risk management and risk control
Vontobel Group, Annual Reports 2011 93

Notes to the consolidated financial statements
Risk management and risk control
Interest rate risk of Vontobel Group
Interest rate risk
94 Vontobel Group, Annual Reports 2011
Interest sensitivity as of 31-12-11
up to 1 1 to 3 3 to 12 1 to 5 more than
month months months
years 5 years Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
+100 basis points
CHF: Vontobel Group 0.9 11.7 4.5 (9.1) (5.8) 2.2
of which IB (0.3) 11.8 6.2 (2.4) (5.6) 9.7
of which non-IB 1.2 (0.1) (1.7) (6.7) (0.2) (7.5)
USD: Vontobel Group 0.3 0.5 1.1 1.8 (1.3) 2.4
of which IB (0.1) 0.7 1.3 3.2 (1.2) 3.9
of which non-IB 0.4 (0.2) (0.2) (1.4) (0.1) (1.5)
EUR: Vontobel Group 0.3 1.5 5.4 (9.1) (2.4) (4.3)
of which IB 0.2 1.6 5.4 (1.9) (2.0) 3.3
of which non-IB 0.1 (0.1) 0.0 (7.2) (0.4) (7.6)
Others: Vontobel Group 0.1 (0.2) 1.0 (2.1) (0.4) (1.6)
of which IB 0.0 (0.2) 1.3 (2.1) (0.4) (1.4)
of which non-IB 0.1 0.0 (0.3) 0.0 0.0 (0.2)
–100 basis points
CHF: Vontobel Group (0.1) (5.1) (1.3) 0.8 3.2 (2.5)
of which IB 0.0 (5.1) (1.7) (0.7) 3.0 (4.5)
of which non-IB (0.1) 0.0 0.4 1.5 0.2 2.0
USD: Vontobel Group 0.0 (0.8) (1.3) (1.5) 1.4 (2.2)
of which IB 0.1 (0.9) (1.5) (2.7) 1.2 (3.8)
of which non-IB (0.1) 0.1 0.2 1.2 0.2 1.6
EUR: Vontobel Group (0.3) (4.2) (7.4) 9.1 2.4 (0.4)
of which IB (0.2) (4.3) (7.4) 1.6 1.9 (8.4)
of which non-IB (0.1) 0.1 0.0 7.5 0.5 8.0
Others: Vontobel Group 0.0 0.2 (1.9) 2.2 0.4 0.9
of which IB 0.0 0.2 (1.9) 2.2 0.4 0.9
of which non-IB 0.0 0.0 0.0 0.0 0.0 0.0
IB = Investment Banking

Interest rate risk
Notes to the consolidated financial statements
Risk management and risk control
Interest sensitivity as of 31-12-10
up to 1 1 to 3 3 to 12 1 to 5 more than
month months months
years 5 years Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
+100 basis points
CHF: Vontobel Group 1.3 2.3 (2.1) (1.6) 7.2 7.1
of which IB 0.4 2.4 (0.9) 4.4 7.4 13.7
of which non-IB 0.9 (0.1) (1.2) (6.0) (0.2) (6.6)
USD: Vontobel Group 0.0 (0.4) 2.1 0.5 (0.2) 2.0
of which IB (0.1) (0.3) 1.9 1.2 (0.2) 2.5
of which non-IB 0.1 (0.1) 0.2 (0.7) 0.0 (0.5)
EUR: Vontobel Group 0.0 (0.6) 2.9 (13.5) 6.0 (5.2)
of which IB (0.3) (0.4) 2.5 0.9 6.5 9.2
of which non-IB 0.3 (0.2) 0.4 (14.4) (0.5) (14.4)
Others: Vontobel Group 0.0 (0.1) (1.1) (0.4) (0.1) (1.7)
of which IB 0.0 0.0 (0.5) (0.3) (0.1) (0.9)
of which non-IB 0.0 (0.1) (0.6) (0.1) 0.0 (0.8)
–100 basis points
CHF: Vontobel Group (0.7) 0.0 0.4 (5.2) (0.8) (6.3)
of which IB 0.2 (0.1) (0.8) (11.4) (1.1) (13.2)
of which non-IB (0.9) 0.1 1.2 6.2 0.3 6.9
USD: Vontobel Group 0.0 0.5 (1.9) (0.4) 0.2 (1.6)
of which IB 0.1 0.4 (1.7) (1.1) 0.2 (2.1)
of which non-IB (0.1) 0.1 (0.2) 0.7 0.0 0.5
EUR: Vontobel Group 0.0 0.2 (4.0) 12.7 (6.3) 2.6
of which IB 0.3 0.0 (3.6) (2.2) (6.8) (12.3)
of which non-IB (0.3) 0.2 (0.4) 14.9 0.5 14.9
Others: Vontobel Group 0.0 0.1 1.1 0.2 0.2 1.6
of which IB 0.0 0.0 0.3 0.1 0.2 0.6
of which non-IB 0.0 0.1 0.8 0.1 0.0 1.0
IB = Investment Banking
Vontobel Group, Annual Reports 2011 95

Notes to the consolidated financial statements
Risk management and risk control
Currency risk
96 Vontobel Group, Annual Reports 2011
Under IFRS, the market value effect of changes in interest rates in Investment Banking essentially
has an impact on the income statement, as well as on shareholders’ equity as a result of
changes in retained earnings. However, the only impact outside Investment Banking is on interest
rate sensitive positions that are assigned to the category “fair value through profit and loss”
under IFRS. In the case of interest rate sensitive financial investments in the category “availablefor-sale”,
the market value effect of changes in interest rates only has an impact on shareholders’
equity. If interest rates changed by +100 (–100) basis points, the impact on pre-tax profit in Investment
Banking would be CHF +15.5 mn as of 31-12-11 and CHF +24.5 mn as of 31-12-10
(31 12-11: CHF –15.8 mn, 31-12-10: CHF –27.0 mn) and the pre-tax impact on consolidated
shareholders’ equity would be CHF +1.0 mn as of 31-12-11 and CHF +2.2 mn as of 31-12-10
(31-12-11: CHF –6.2 mn, 31-12-10: CHF –3.7 mn).
As a result of conservative risk limits and the moderate level of sensitivity to changes in interest
rates at Group level, it is not necessary for Treasury to implement hedging measures involving
interest rate derivatives.
In view of the limited significance of interest income from variable interest-bearing positions or
positions which expire in the course of the year, the impact of a change in interest rates on income
levels has not been simulated.
2.3.2 Currency risk
As in the case of interest rate risks, currency risks relating to trading positions and the balance
sheet structure are kept at a low level. This is achieved primarily through currency-congruent
investments and refinancing activities. The following table shows the sensitivities to changes in
foreign exchange rates of +/–5% according to internal reports. The sensitivities correspond to the
pre-tax impact on consolidated shareholders’ equity.
Currency sensitivity as of 31-12-11
USD EUR JPY GBP Others
1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF
+5%
Vontobel Group 2,950.9 9,405.3 76.8 106.8 2,137.4
of which IB 933.3 1,167.1 76.8 152.0 2,049.9
of which non-IB 2,017.6 8,238.2 0.0 (45.2) 87.5
–5%
Vontobel Group (3,106.4) (9,400.3) (169.2) (58.4) (2,164.9)
of which IB (1,088.8) (1,162.1) (169.2) (103.6) (2,077.4)
of which non-IB (2,017.6) (8,238.2) 0.0 45.2 (87.5)
Currency sensitivity as of 31-12-10
USD EUR JPY GBP Others
1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF
+5%
Vontobel Group 388.4 7,681.5 (608.8) 74.8 (966.8)
of which IB (1,311.2) 1,115.1 (611.8) (138.8) (1,289.3)
of which non-IB 1,699.6 6,566.4 3.0 213.6 322.5
–5%
Vontobel Group (2,502.2) (6,928.0) (109.2) (471.7) (970.9)
of which IB (802.6) (361.6) (106.2) (258.1) (648.4)
of which non-IB (1,699.6) (6,566.4) (3.0) (213.6) (322.5)

3. Liquidity risk and refinancing
Liquidity risk refers to the risk of being unable to cover short-term funding needs at any time (e.g.
due to the impossibility of substituting or renewing deposits, outflows of funds due to drawing
on lending commitments or margin calls, etc.). The diversification of sources of refinancing and
access to the repo market ensure that cash and cash equivalents are rapidly available on a secured
basis if required. Liquidity is monitored and assured on a daily basis. The continuous monitoring
of the volume and quality of available collateral also ensures that the Vontobel Group always has
adequate refinancing capabilities. In the event of an unexpected tightening of liquidity, the Group
can also access a portfolio of positions that retain their value and can easily be liquidated.
The maturity structure of assets and liabilities is shown in note 33. Liquidity has to be provided
for the daily market making required for the issuing and trading business. Consequently, the balance
sheet positions “Trading portfolio assets”, “Positive replacement values”, “Other financial
assets at fair value”, “Trading portfolio liabilities”, “Negative replacement values” and “Other
financial liabilities at fair value” are not broken down into individual cash flows and divided into
different maturity ranges but are, instead, reported at fair value in the “Demand” column. In the
case of the other financial balance sheet positions, the book values are reported in the maturity
range which represents the earliest point at which payment can be demanded according to the
contractual provisions. In view of the predominantly short maturities, the breakdown of these
positions into individual cash flows would provide an only marginally different view.
4. Credit risk
4.1 General information
Credit risk concerns the risk of losses should a counterparty fail to honour its contractual obligations.
In the case of the Vontobel Group, credit risk comprises:
– Default risks from lending against collateral (“lombard lending”)
– Default risks from bond positions (issuer risk)
– Default risks from money market investments
– Default risks related to securities lending and borrowing, repo transactions, collateral management
and derivatives, as well as
– Default risks related to settlement.
The Vontobel Group is not active in the commercial lending business.
4.2 Lending to private and institutional investment clients
In the case of private and institutional investment clients, the Vontobel Group engages primarily
in lending against collateral, i.e. the extension of loans is subject to the provision of securities that
serve as easily realizable collateral. As a restriction on lending, limits on blanket credit lines are set
for each client. These limits cover all the positions assumed in respect of each client. These exposures
(including the risk add-ons determined by the type of exposure) must essentially be covered
by the collateral value of the collateral (securities after haircuts). Exposures that are only secured
from a market value perspective but not after the application of collateral add-ons or haircuts, or
exposures that are secured by collateral that is not recognized according to the guidelines of the
Basel Committee on Banking Supervision, are only assumed in exceptional cases in respect of
these clients. The lending value of positions and portfolios is generally determined in accordance
with the “comprehensive approach” prescribed in the capital adequacy requirements of the Basel
Committee on Banking Supervision (Basel II). The quality of the collateral (volatility, rating, liquidity
and tradability) and the diversification of the portfolio and currency risks are considered
in the calculation.
In cases where the exposures are covered by market values but not by collateral values (i.e. after
taking account of risk discounts), a default process is initiated with the aim of restoring cover
through the reduction of the exposures, portfolio switches or the provision of additional collateral.
Notes to the consolidated financial statements
Risk management and risk control
Vontobel Group, Annual Reports 2011 97

Notes to the consolidated financial statements
Risk management and risk control
98 Vontobel Group, Annual Reports 2011
As of 31-12-11, gross exposures to private clients and institutional investment clients totalled
CHF 1,444.5 mn (31-12-10: CHF 1,204.9 mn), of which CHF 1,402.0 mn (31-12-10: CHF
1,149.8 mn) was secured by recognized financial collateral (after risk discounts) and CHF 42.5 mn
(31-12-10: CHF 55.1 mn) was not secured by recognized financial collateral.
Lending to private and institutional investment clients 1
Covered by
recognized
collateral
Not covered
by recognized
collateral
31-12-11
Total
CHF mns CHF mns CHF mns
Total lending exposure 1,402.0 42.5 1,444.5
Covered by
recognized
collateral
Not covered
by recognized
collateral
31-12-10
Total
CHF mns CHF mns CHF mns
Total lending exposure 1,149.8 55.1 1,204.9
1 Comprises not only cash credits but also the total due from private and institutional investment clients.
4.3 Exposures to professional counterparties and issuer risk
The Vontobel Group has both secured and unsecured exposures to professional counterparties.
Secured exposures result from securities lending and borrowing, repo transactions, the collateral
management of margin obligations and margin calls, as well as the collateralization of OTC
derivatives that are eligible for netting. The mitigation of credit risks using securities as easily
realizable collateral is of key importance for these types of transactions. The transactions are
generally concluded on the basis of collateralized netting agreements with strict requirements
regarding eligible collateral, appropriate contractual collateral values and low contractual thresholds
and minimum transfer amounts. The daily calculation and comparison of credit exposures
and collateral is a core element of the management and monitoring of credit risks. During this
process, conservative add-on factors are applied to the credit exposures and conservative haircuts
are applied to the collateral in accordance with the “comprehensive approach” prescribed in the
capital adequacy requirements of the Basel Committee on Banking Supervision (Basel II). The different
add-ons and haircuts are determined according to the instrument, rating, term to maturity,
liquidity and tradability.
Unsecured exposures mainly comprise the issuer risks in bond portfolios held in Investment
Banking or for the purpose of balance sheet management. They also include exposures relating
to money market transactions, accounts, guarantees and contractual independent amounts
(threshold values and minimum transfer amounts) that are agreed with counterparties in netting
agreements for securities lending and borrowing, repurchase agreements and the collateralization
of OTC derivatives.
Settlement risks are reduced through the use of the Continuous Linked Settlement (CLS) system
when conducting foreign currency transactions. Vontobel is connected to the CLS system as a
third party. The remaining settlement risks are restricted and monitored through the use of limits
for each settlement period.
All exposures to professional counterparties are monitored and restricted using a differentiated
system of limits for the individual counterparty categories, rating segments, countries and
regions.

The Vontobel Group bases the management and limitation of exposures to professional counterparties
on internal assessments by the Credit Management unit as well as on the ratings of external
agencies recognized by the FINMA. It uses the ratings of Fitch, Moody’s and S&P. If various
ratings exist for a specific position, the relevant rating is assigned according to the rules prescribed
by the Basel Committee on Banking Supervision.
The requirements regarding counterparty creditworthiness are particularly high for unsecured
credit risks as well as issuer risks. The breakdown of unsecured counterparty and issuer risks by
rating category is shown in the following table and graph. This and the following tables now
only contain information on current unsecured exposures without potential exposures relating to
collateralized positions. The figures including the application of add-ons or haircuts in accordance
with capital regulations are presented in the tables in the section on capital.
Breakdown of unsecured counterparty and issuer risks by rating 1
Notes to the consolidated financial statements
Risk management and risk control
below BBB /
without 31-12-11
AAA AA A BBB rating
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments2 2,780.1 2,254.6 3,236.7 315.4 163.8 8,750.6
Money market and accounts 1,352.1 265.5 208.1 0.3 37.6 1,863.6
Other financial receivables3 5.3 102.2 153.5 3.3 1.6 265.9
Total 4,137.5 2,622.3 3,598.3 319.0 203.0 10,880.1
below BBB /
without 31-12-10
AAA AA A BBB rating
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments2 3,100.3 3,356.1 3,038.9 279.4 139.4 9,914.1
Money market and accounts 1,515.8 310.5 133.6 0.0 2.1 1,962.0
Other financial receivables3 3.9 24.0 62.3 3.0 1.6 94.8
Total 4,620.0 3,690.6 3,234.8 282.4 143.1 11,970.9
1 Unsecured credit exposure after contractual netting without the application of add-ons on derivatives and haircuts on other financial securities
2 Incl. positions in credit default swaps
3 Securities lending & borrowing, repo transactions, collateral management, derivatives, guarantees and pledged capital life insurance policies
Vontobel Group, Annual Reports 2011 99

Notes to the consolidated financial statements
Risk management and risk control
100 Vontobel Group, Annual Reports 2011
5,000
4,000
3,000
2,000
1,000
0
Breakdown of the Vontobel Group’s credit risk by rating (CHF mns)
AAA AA A BBB
below BBB/
without rating
■ 2011 ■ 2010
The exposures mainly relate to the rating categories “AAA” and “AA”, as shown in the previous
table and graph: as of 31-12-11, 62% (31-12-09: 69%) of the exposures related to these categories
of high creditworthiness. 95% of the exposures comprised a rating of “A” or above
(31-12-10: 96%). The proportion of exposures with a rating of less than “BBB” or with no rating
was 2% (31-12-10: 1%).

The breakdown of credit exposures by counterparty type as well as by geographical region is
illustrated in the following table.
Breakdown of unsecured counterparty and issuer risks by counterparty type 1
Notes to the consolidated financial statements
Risk management and risk control
Other
corporations/
institutions
without bank
Governments/
public sector
31-12-11
Banks status bodies2 Total
CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments3 3,767.8 1,413.6 3,569.2 8,750.6
Money market and accounts 575.4 11.3 1,276.9 1,863.6
Other financial receivables4 101.5 159.7 4.7 265.9
Total 4,444.7 1,584.6 4,850.8 10,880.1
Other
corporations/
institutions
without bank
Governments/
public sector
31-12-10
Banks status bodies2 Total
CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments3 4,501.1 1,482.1 3,930.9 9,914.1
Money market and accounts 572.9 13.0 1,376.1 1,962.0
Other financial receivables4 41.4 51.3 2.1 94.8
Total 5,115.4 1,546.4 5,309.1 11,970.9
1 Unsecured credit exposure after contractual netting without the application of add-ons on derivatives and haircuts on other financial securities
2 Incl. due from the Swiss National Bank
3 Incl. positions in credit default swaps
4 Securities lending & borrowing, repo transactions, collateral management, derivatives, guarantees and pledged capital life insurance policies
With regard to the counterparty type, a large proportion of the unsecured counterparty and
issuer risks relates to banks, as expected. As of 31-12-11, these exposures accounted for
CHF 4,444.7 mn (previous year CHF 5,115.4 mn) of a total of CHF 10,880.1 mn (CHF 11,970.9
mn) or 41% (previous year 43%).
When setting limits, considerable importance is assigned to preventing concentration risks relating
to individual counterparties, thus ensuring that exposures within counterparty categories are
broadly diversified.
Vontobel Group, Annual Reports 2011 101

Notes to the consolidated financial statements
Risk management and risk control
Breakdown of unsecured counterparty and issuer risks by region 1
102 Vontobel Group, Annual Reports 2011
Europe excl. North
31-12-11
Switzerland Switzerland America Asia Others
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments2 622.6 6,097.7 835.7 1,147.6 47.0 8,750.6
Money market and accounts 1,337.6 495.9 22.9 6.0 1.2 1,863.6
Other financial receivables3 85.0 168.7 7.5 1.7 3.0 265.9
Total 2,045.2 6,762.3 866.1 1,155.3 51.2 10,880.1
Europe excl. North
31-12-10
Switzerland Switzerland America Asia Others
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Issuer risk from debt instruments2 805.5 6,773.2 1,178.4 866.6 290.4 9,914.1
Money market and accounts 1,590.4 343.5 26.3 0.0 1.8 1,962.0
Other financial receivables3 28.0 53.5 10.3 0.0 3.0 94.8
Total 2,423.9 7,170.2 1,215.0 866.6 295.2 11,970.9
1 Unsecured credit exposure after contractual netting without the application of add-ons on derivatives and haircuts on other financial securities
2 Incl. positions in credit default swaps
3 Securities lending & borrowing, repo-transactions, collateral management, derivatives, guarantees, and pledged capital life insurance policies
In geographical terms, the unsecured credit and issuer risks mainly relate to the region of Europe
(excl. Switzerland). Exposures in Switzerland and in the regions of North America and Asia account
for a much smaller proportion of these risks. At the end of 2011, unsecured credit risk exposures
and unsecured issuer risk exposures to sovereign borrowers in peripheral Eurozone countries
('PIIGS' states) totalled CHF 164.2 mn after hedging. The risk exposure to Greece accounted
for CHF 0.4 mn of this sum. The Vontobel Group has no exposure to Portugal.
Exposures involving country risks are avoided in principle. Consequently, there are no relevant
country risks to report on a consolidated basis.

5. Operational risks
5.1 Definition of operational risks
Operational risks – which are primarily regarded as the residual exposures to the traditional risk
categories of market and credit risks – represent the risk of losses resulting from the inadequacy
or failure of internal processes, people and systems or from external events.
5.2 Operational risk concept
In order to identify and restrict operational risks, appropriate measures such as internal control
systems (ICS) as well as the selection, training and supervision of employees are implemented
within the individual units. A uniform framework is used throughout the Vontobel Group to provide
a shared understanding of the concept and to ensure the comparability of results. The concept
is based on four dimensions:
– A generic, hierarchical process model forms the basic framework.
– The qualitative assessment of risks leads to an aggregation of subjective evaluations.
– The quantitative measurement of risks completes the picture.
– After being assessed and measured, the risks are prioritized and appropriate measures are
taken to mitigate them.
The identification, analysis and measurement of operational risks is an iterative, ongoing process
conducted throughout the organization.
5.2.1 Process model
Operational risks are the risks that occur in a company's value creation chain and are therefore
identified in its core business processes. A generic process model that is applied to all business
units as well as to the Group on a consolidated basis thus forms the basic framework for the
management of operational risks. This process view constitutes the basis for the qualitative and
quantitative examination of risks as well as for the Internal Control System.
5.2.2 Qualitative risk assessment method
The qualitative risk assessment method takes account of risks that are difficult or impossible to
quantify. These risks include potential losses that don’t directly result in financial gains or losses
at the time of the loss event but indirectly impact the company’s earnings position at a later date.
The qualitative risk assessment method is based on the view that the most accurate picture can
be obtained primarily through subjective evaluations by risk specialists. Subjective estimates are
produced using various methods of data collection.
Within the operational risk concept, the method used for this assessment and qualitative evaluation
of risks is founded on the Key Risk Indicator (KRI) process – comprising risk assessment
workshops and surveys of experts – which is based on an industry-wide approach that is recognized
from a regulatory perspective.
Classification of operational risks
The possibility that an operational risk event could occur is implicit in every business activity. At
the Vontobel Group, the presentation and assessment of operational risks is based on the classification
of these risks according to the two dimensions 'frequency' and 'impact'.
– 'Frequency': denotes the probability that a loss event will occur, i.e. how often a specific
event can be expected to happen.
– 'Impact': denotes the magnitude of the loss event. This risk dimension is expressed in directly
quantifiable terms (profit/loss; opportunity costs) as well as in (external) terms that are difficult
to quantify (e.g. reputation, level of resources tied up internally, external investigations
and proceedings, etc.).
Notes to the consolidated financial statements
Risk management and risk control
Vontobel Group, Annual Reports 2011 103

Notes to the consolidated financial statements
Risk management and risk control
104 Vontobel Group, Annual Reports 2011
Risks are classified as follows, based on the various possible combinations of these two risk
dimensions:
Low Operational Risk
– Low Impact/Low Frequency: Loss events that rarely occur and have a low loss potential.
Medium Operational Risk
– Low Frequency/High Impact: Loss events that rarely occur but have a high loss potential. For
example, a loss event could lead to the breakdown of one or more business-critical process
entities and thus render one or more core business processes and business functions impossible,
resulting in a significant loss of income. This risk category has to be monitored very
carefully due to the high loss potential involved.
– High Frequency/Low Impact: Loss events that have an insignificant loss potential when they
occur individually and do not directly jeopardize core business processes and functions. In
view of the frequency with which these loss events occur, this combination is nevertheless of
relevance to the business and can lead to a significant loss of income. This risk category has
to be monitored very carefully due to the high loss potential involved.
High Operational Risk
– High Frequency/High Impact: Loss events that have a high loss potential and occur very
frequently. Their impact ranges from a very significant loss of income to the unavoidable
discontinuation of business activities. If risks in this category occur, they can have exceptionally
far-reaching implications for the Group and are therefore of the utmost importance in
terms of risk management.
5.2.3 Quantitative risk assessment
A quantitative risk assessment is performed with the aim of recording all the actual or potential
operational risks that occur in the company in the form of numerical values. As well as ensuring
compliance with all regulatory and legislative requirements, the primary objective of this risk
assessment is to create transparency and expertise regarding the company-wide operational risk
situation and the active management of risk.
5.2.4 Risk mitigation
The Vontobel Group assigns particular importance to operational risks that are classified as
medium or high-level operational risks in the qualitative risk assessment. From an economic
and risk-related perspective, the aim is to transform higher-level risks into lower-level risks. This
process involves identifying and analyzing potential sources and transmitters of risk and planning
appropriate measures to reduce the frequency with which the loss events occur and/or their
impact. The following strategies are applied in this context:
– Risk prevention: Selective approach to business activities to prevent risk
– Risk reduction: Reduction of risk through improvements in processes, systems and controls
– Risk transfer: Transfer of risks to third parties through the conclusion of suitable insurance
policies or sourcing agreements
In order to mitigate risks, it is absolutely imperative to have an ICS as well as an iterative process
to ensure the ICS functions effectively and to keep it up to date.

Notes to the consolidated financial statements
Capital
Capital
106 Vontobel Group, Annual Reports 2011
The capital base serves primarily as a means of covering inherent business risks. The active management
of the volume and structure of capital is therefore of key importance. The monitoring
and management of capital adequacy is performed primarily on the basis of the regulations and
ratios defined by the Basel Committee on Banking Supervision, as well as other criteria. Compliance
with the statutory capital adequacy requirements prescribed by Switzerland and the Swiss
Financial Market Supervisory Authority (FINMA) is mandatory. External capital adequacy requirements
were met in the year under review and in previous years without exception.
1. Capital management
Capital management is aimed primarily at supporting growth and creating added value for shareholders
while complying with regulatory capital requirements. A solid capital position and structure
also enable the Vontobel Group to demonstrate its financial strength and creditworthiness to
its business partners and clients.
Capital management is performed while taking account of the economic environment and the
risk profile of all business activities. Various control options are available to maintain the target
level of capital and the desired capital structure or to adapt them in line with changing requirements.
These options include flexible dividend payments, the repayment of capital or the procurement
of capital in various forms (tier 1 to tier 3). During the year under review, there were no
significant changes to the objectives, principles of action or processes compared to the previous
year.
2. Regulatory requirements
Banks can use a number of different approaches to calculate their capital adequacy requirements
according to Basel II. The Vontobel Group applies the International Standardized Approach
(SA-BIS) for credit risks, the standardized approach for market risks and the base indicator approach
for operational risks. As part of the reduction of credit risks (risk mitigation), the comprehensive
approach with standard haircuts is applied for the recognition of collateral.
As a result of the recognition of the fair value option by FINMA in accordance with Section V. of
the FINMA circular 08/34 (adjustment of tier 1 capital), unrealized gains and losses are included
in the calculation of tier 1 capital. This excludes the valuation adjustments of own liabilities recorded
in accordance with IFRS rules due to a change in own creditworthiness. As a result, tier 1
capital totalled CHF 1,158.6 mn and the BIS tier 1 ratio was 23.3%. The BIS tier 1 ratio thus
substantially exceeds the minimum capital ratio. Including valuation adjustments of own liabilities,
there was a corresponding increase in tier 1 capital to CHF 1,284.5 mn and the BIS tier 1
ratio was 25.8%.
The scope of consolidation used for the calculation of capital was the same in the year under
review and the previous year as the scope of consolidation used for accounting purposes. Please
refer to the tables “Major subsidiaries and participations” and “Changes in the scope of consolidation”
in the Notes to the consolidated financial statements for further details. With the exception
of the statutory regulations, no restrictions apply that prevent the transfer of money or
capital within the Group.

Eligible and required capital
Notes to the consolidated financial statements
Capital
31-12-11 31-12-10
CHF mns CHF mns
Eligible capital
Gross tier 1 capital 1,425.2 1,412.6
Paid-in capital 65.0 65.0
Disclosed reserves 1,368.8 1,345.4
Net profit for the current financial year 113.7 147.8
Deduction for treasury shares (50.8) (54.2)
Minority interests 0.0 (0.4)
Innovative instruments (hybrid tier 1) 0.0 0.0
Deduction for dividends, as proposed by the Board of Directors (71.5) (91.0)
Deduction for goodwill and intangible assets (140.7) (150.7)
Other deductions (125.9) (19.2)
Eligible BIS tier 1 capital 1,158.6 1,242.7
Tier 2 and tier 3 capital 0.0 0.0
Other deductions from total capital 0.0 0.0
Eligible capital (BIS) 1,158.6 1,242.7
Required capital
Credit risks 108.1 145.6
Receivables 89.1 125.8
Price risk relating to equity instruments in the banking book 19.0 19.8
Non-counterparty related risks 15.7 16.2
Market risks 154.7 174.8
Interest rates 102.7 109.7
Equities 14.5 23.5
Currencies 24.0 26.5
Gold 1.9 1.6
Commodities 11.6 13.5
Operational risk 119.1 118.6
Total required capital 397.6 455.2
Additional Swiss capital requirements for non-counterparty related risks and credit risks 46.6 49.9
Total required capital according to FINMA regulations 444.2 505.1
Ratios
BIS tier 1 capital ratio before the adjustment of the Group’s own credit risk (minimum requirement: 4%) 1 25.8% 22.2%
BIS tier 1 capital ratio after the adjustment of the Group’s own credit risk (minimum requirement: 4%) 1 23.3% 21.8%
BIS total capital ratio after the adjustment of the Group’s own credit risk (minimum requirement: 8%) 1 Ratio of eligible/required capital according to the guidelines of the Swiss Financial Market Supervisory Authority
23.3% 21.8%
(minimum requirement 100%) 239.8% 223.1%
1 As a result of the recognition of the fair value option by FINMA in accordance with Section V. of the FINMA circular 08/34 (adjustment of tier 1 capital),
unrealized gains and losses are included in the calculation of tier 1 capital. This excludes the valuation adjustments of own liabilities recorded in accordance
with IFRS rules due to a change in own creditworthiness. Including the valuation adjustments of own liabilities, tier 1 capital amounts to CHF 1,284.5 mn
(previous year CHF 1,261.9 mn) instead of CHF 1,158.6 mn (previous year CHF 1,242.7 mn).
Vontobel Group, Annual Reports 2011 107

Notes to the consolidated financial statements
Capital
108 Vontobel Group, Annual Reports 2011
3. Breakdown of credit risks in accordance with FINMA Circular 08/22
The following tables are intended to provide additional quantitative information regarding the
capital adequacy requirements for credit risks, in accordance with the FINMA Circular 08/22. The
type and volume of information is based on the Basel II regulations. The total values may deviate
from the book values reported according to IFRS. In particular, off-balance-sheet items are
weighted with the corresponding credit conversion factor and reported accordingly. In the case
of derivative financial instruments, the negative replacement values that are eligible for offset
(netting) are deducted from the positive replacement values. The add-ons that are shown entail
a percentage-based premium based on the contract volume of the corresponding derivative financial
instruments. The percentage rate is determined on the basis of the underlying and the
remaining term of the contract. AFS interest rate instruments comprise financial investments in
the banking book that represent an issuer-related risk. All remaining positions that have to be
covered with capital for credit risks are reported collectively under 'Other assets'. In particular,
they include accruals and deferrals, equity instruments in the banking book and hedge funds in
trading portfolio assets. Unlike in the 2010 consolidated financial statements, the figures for the
previous year in the 2011 consolidated financial statements have been adapted to the new structure
to facilitate comparisons of the results.
Excluding the above-mentioned positions reported under 'Other assets', the balance sheet items
'Trading portfolio assets' and 'Other financial assets at fair value' do not entail any credit risks
(but do entail a specific market risk) from a regulatory capital perspective and are therefore omitted
from the following tables. Information on credit risks in the trading book is provided in section
4.3 of the notes on risk management and risk control.

The domicile of the counterparty or issuer serves as the basis for the allocation to the different
geographical regions in the following table.
Credit risks broken down by region
Notes to the consolidated financial statements
Capital
Europe excl. North
31-12-11
Switzerland Switzerland America Asia Others
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 900.7 1,091.0 53.9 74.9 296.9 2,417.4
Due from customers 385.3 768.5 58.1 18.2 140.3 1,370.4
Debt instruments AFS 173.1 592.1 66.6 8.7 124.0 964.5
Other assets 514.4 35.3 1.0 16.0 0.8 567.5
Positive replacement values after netting 22.1 44.2 0.4 0.3 5.7 72.7
Total balance sheet
Off balance sheet
1,995.6 2,531.1 180.0 118.1 567.7 5,392.5
Contingent liabilities / guarantee credits 51.9 139.6 5.0 2.8 13.0 212.3
Irrevocable commitments 6.5 0.0 0.0 0.0 0.0 6.5
Add-ons 13.5 56.4 0.7 0.5 4.5 75.6
Total off balance sheet 71.9 196.0 5.7 3.3 17.5 294.4
Total 2,067.5 2,727.1 185.7 121.4 585.2 5,686.9
Europe excl. North
31-12-10
Switzerland Switzerland America Asia Others
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 754.1 974.1 53.2 144.8 301.6 2,227.8
Due from customers 419.9 776.0 98.7 31.2 101.2 1,427.0
Debt instruments AFS 251.0 594.7 64.9 0.0 63.0 973.6
Other assets 736.8 34.1 0.1 15.6 0.5 787.1
Positive replacement values after netting 43.0 75.0 4.0 0.1 1.8 123.9
Total balance sheet
Off balance sheet
2,204.8 2,453.9 220.9 191.7 468.1 5,539.4
Contingent liabilities / guarantee credits 175.6 32.2 5.6 1.5 7.4 222.3
Irrevocable commitments 2.5 0.0 0.0 0.0 0.0 2.5
Add-ons 14.6 167.7 0.6 0.2 3.1 186.2
Total off balance sheet 192.7 199.9 6.2 1.7 10.5 411.0
Total 2,397.5 2,653.8 227.1 193.4 478.6 5,950.4
Vontobel Group, Annual Reports 2011 109

Notes to the consolidated financial statements
Capital
Credit risks broken down by sector or counterparty type
110 Vontobel Group, Annual Reports 2011
The industry code of the counterparty or issuer serves as the basis for the allocation to the different
sectors in the following table.
Government
Private and
institutional
and central
investment 31-12-11
banks Banks Public bodies clients Other Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 0.0 2,417.4 0.0 0.0 0.0 2,417.4
Due from customers 38.0 0.0 20.8 1,226.7 84.9 1,370.4
Debt instruments AFS 219.7 213.2 149.2 0.0 382.4 964.5
Other assets 6.9 27.1 0.1 439.1 94.3 567.5
Positive replacement values after netting 0.0 42.1 0.0 30.1 0.5 72.7
Total balance sheet
Off balance sheet
264.6 2,699.8 170.1 1,695.9 562.1 5,392.5
Contingent liabilities / guarantee credits 0.3 5.1 1.0 174.0 31.9 212.3
Irrevocable commitments 0.0 0.0 0.0 0.0 6.5 6.5
Add-ons 0.0 62.9 0.0 12.4 0.3 75.6
Total off balance sheet 0.3 68.0 1.0 186.4 38.7 294.4
Total 264.9 2,767.8 171.1 1,882.3 600.8 5,686.9
Government
Private and
institutional
and central Public investment 31-12-10
banks Banks bodies clients Other Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 0.0 2,227.8 0.0 0.0 0.0 2,227.8
Due from customers 36.3 0.0 67.3 1,274.4 49.0 1,427.0
Debt instruments AFS 232.7 158.3 264.2 0.0 318.4 973.6
Other assets 1.2 35.0 0.1 521.5 229.3 787.1
Positive replacement values after netting 0.2 78.3 0.5 41.6 3.3 123.9
Total balance sheet
Off balance sheet
270.4 2,499.4 332.1 1,837.5 600.0 5,539.4
Contingent liabilities / guarantee credits 0.9 78.1 0.6 53.5 89.2 222.3
Irrevocable commitments 0.0 0.0 0.0 0.0 2.5 2.5
Add-ons 0.2 171.8 1.0 10.3 2.9 186.2
Total off balance sheet 1.1 249.9 1.6 63.8 94.6 411.0
Total 271.5 2,749.3 333.7 1,901.3 694.6 5,950.4

The following table provides an overview of credit risks broken down by risk weighting categories
according to Basel II. The allocation of the exposures to the risk weightings is based on the type
and current rating of the counterparty or the issue rating for the financial investment.
Credit risks broken down by risk weighting categories according to Basel II
Notes to the consolidated financial statements
Capital
0% 20% 50% 75% 100% 150%
31-12-11
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 1,773.4 557.5 86.5 0.0 0.0 0.0 2,417.4
Due from customers 1,050.4 0.0 0.0 32.6 287.4 0.0 1,370.4
Debt instruments AFS 251.1 462.1 138.5 0.0 53.3 59.5 964.5
Other assets 211.1 0.5 23.8 0.4 331.7 0.0 567.5
Positive replacement values after netting 24.6 10.9 16.3 0.0 20.6 0.3 72.7
Total balance sheet
Off balance sheet
3,310.6 1,031.0 265.1 33.0 693.0 59.8 5,392.5
Contingent liabilities / guarantee credits 45.3 0.0 5.5 8.7 152.8 0.0 212.3
Irrevocable commitments 0.0 0.0 0.0 0.0 6.5 0.0 6.5
Add-ons 8.2 11.5 43.3 0.0 12.5 0.1 75.6
Total off balance sheet 53.5 11.5 48.8 8.7 171.8 0.1 294.4
Total 3,364.1 1,042.5 313.9 41.7 864.8 59.9 5,686.9
0% 20% 50% 75% 100% 150%
31-12-10
Total
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Balance sheet
Due from banks 1,819.8 346.0 62.0 0.0 0.0 0.0 2,227.8
Due from customers 961.5 0.1 0.0 78.5 386.9 0.0 1,427.0
Debt instruments AFS 232.7 507.6 127.3 0.0 63.1 42.9 973.6
Other assets 23.0 1.2 31.1 0.3 731.5 0.0 787.1
Positive replacement values after netting 76.7 10.1 34.5 0.0 2.5 0.1 123.9
Total balance sheet
Off balance sheet
3,113.7 865.0 254.9 78.8 1,184.0 43.0 5,539.4
Contingent liabilities / guarantee credits 37.1 67.9 4.6 6.5 106.0 0.2 222.3
Irrevocable commitments 0.0 0.0 0.0 0.0 2.5 0.0 2.5
Add-ons 20.5 4.9 158.2 0.0 2.6 0.0 186.2
Total off balance sheet 57.6 72.8 162.8 6.5 111.1 0.2 411.0
Total 3,171.3 937.8 417.7 85.3 1,295.1 43.2 5,950.4
Vontobel Group, Annual Reports 2011 111

Notes to the consolidated financial statements
Capital
Credit risks broken down by credit risk mitigation methods
112 Vontobel Group, Annual Reports 2011
Loans extended against collateral, OTC derivatives, securities lending and borrowing transactions
and repo transactions are secured primarily using securities as easily realizable collateral. The following
table shows the credit risks broken down by collateral type in accordance with the comprehensive
approach under Basel II with standard haircuts.
Covered by
recognized
collateral
Not covered
by recognized
collateral
31-12-11
Total
CHF mns CHF mns CHF mns
Balance sheet
Due from banks 1,773.4 644.0 2,417.4
Due from customers 1,050.4 320.0 1,370.4
Debt instruments AFS 0.0 964.5 964.5
Other assets 0.0 567.5 567.5
Positive replacement values after netting 24.6 48.1 72.7
Total balance sheet
Off balance sheet
2,848.4 2,544.1 5,392.5
Contingent liabilities / guarantee credits 45.3 167.0 212.3
Irrevocable commitments 0.0 6.5 6.5
Add-ons 8.2 67.4 75.6
Total off balance sheet 53.5 240.9 294.4
Total 2,901.9 2,785.0 5,686.9
Covered by
recognized
collateral
Not covered
by recognized
collateral
31-12-10
Total
CHF mns CHF mns CHF mns
Balance sheet
Due from banks 1,819.8 408.0 2,227.8
Due from customers 961.5 465.5 1,427.0
Debt instruments AFS 0.0 973.6 973.6
Other assets 0.0 787.1 787.1
Positive replacement values after netting 76.8 47.1 123.9
Total balance sheet
Off balance sheet
2,858.1 2,681.3 5,539.4
Contingent liabilities / guarantee credits 37.1 185.2 222.3
Irrevocable commitments 0.0 2.5 2.5
Add-ons 20.4 165.8 186.2
Total off balance sheet 57.5 353.5 411.0
Total 2,915.6 3,034.8 5,950.4
The above information on the mitigation of credit risks is based on the Basel II rules and thus
represents the coverage ratios from a capital adequacy perspective. However, the disclosure of
credit risk on page 98 provides a more appropriate basis for the assessment of the actual risk
profile.

Reconciliation of total credit risks under Basel II with balance sheet positions
Notes to the consolidated financial statements
Capital
IFRS
Basel II credit
equivalent
before 31-12-11
book value weighting Difference
CHF mns CHF mns CHF mns Explanation of difference between IFRS and Basel II
Balance sheet
Cash 2,999.6 0.0 (2,999.6) No credit risk resp. no capital requirement
Due from banks
Cash collateral for reverse-repurchase agree-
2,417.4 2,417.4 0.0
ments 1,101.0 0.0 (1,101.0) No credit risk resp. no capital requirement
Due from customers 1,370.4 1,370.4 0.0
Debt instruments AFS 964.5 964.5 0.0
Other assets
Positive replacement values before / after
454.1 567.5 113.4 Basel II incl. SLB credit equivalents
netting 113.0 72.7 (40.3) Gross IFRS book value, Basel II after netting
Total balance sheet
Off balance sheet
9,420.0 5,392.5 (4,027.5)
Contingent liabilities / guarantee credits 424.7 212.3 (212.4) Basel II conversion into credit equivalents
Irrevocable commitments 32.5 6.5 (26.0) Basel II conversion into credit equivalents
Add-ons 0.0 75.6 75.6
Total off balance sheet 457.2 294.4 (162.8)
Total 9,877.2 5,686.9 (4,190.3)
Basel II add-ons based on contract volumes of derivative
instruments
IFRS
Basel II credit
equivalent
before 31-12-10
book value weighting Difference
CHF mns CHF mns CHF mns Explanation of difference between IFRS and Basel II
Balance sheet
Cash 1,457.6 0.0 (1,457.6) No credit risk resp. no capital requirement
Due from banks
Cash collateral for reverse-repurchase agree-
2,227.8 2,227.8 0.0
ments 300.0 0.0 (300.0) No credit risk resp. no capital requirement
Due from customers 1,427.0 1,427.0 0.0
Debt instruments AFS 973.6 973.6 0.0
Other assets
Positive replacement values before / after
484.3 787.1 302.8 Basel II incl. SLB credit equivalents
netting 197.2 123.9 (73.3) Gross IFRS book value, Basel II after netting
Total balance sheet
Off balance sheet
7,067.5 5,539.4 (1,528.1)
Contingent liabilities / guarantee credits 597.8 222.3 (375.5) Basel II conversion into credit equivalents
Irrevocable commitments 14.9 2.5 (12.4) Basel II conversion into credit equivalents
Add-ons 0.0 186.2 186.2
Total off balance sheet 612.7 411.0 (201.7)
Total 7,680.2 5,950.4 (1,729.8)
Basel II add-ons based on contract volumes of derivative
instruments
Vontobel Group, Annual Reports 2011 113

Notes to the consolidated financial statements
Capital
114 Vontobel Group, Annual Reports 2011
The tables on page 113 show the differences between the total amounts reported in accordance
with FINMA Circular 08/22 and the book values of the corresponding balance sheet and offbalance-sheet
positions reported in accordance with IFRS. When determining regulatory capital
requirements, the balance sheet items “Trading portfolio assets” and “Other financial assets at
fair value” are basically assigned to the trading book. This means that they do not entail any
credit risks (but do entail a specific market risk) from a regulatory capital perspective and are
therefore omitted from the tables shown above. A small number of items in the above-mentioned
balance sheet positions are assigned to the banking book from a regulatory capital perspective.
They are contained in the line item “Other assets”.
4. Maximum credit risk before and after credit risk mitigation
Credit risk
31-12-11
Credit risk
before credit
after credit
risk Credit risk
risk
mitigation mitigation1
mitigation
CHF mns CHF mns CHF mns
Balance sheet
Cash 2,992.3 0.0 2,992.3
Due from banks 2,417.4 1,773.4 644.0
Cash collateral for reverse-repurchase agreements 1,101.0 1,101.0 0.0
Trading portfolio assets (debt instruments) 606.6 0.0 606.6
Positive replacement values 113.0 64.9 48.1
Other financial assets at fair value (debt instruments) 7,379.2 0.0 7,379.2
Due from customers 1,370.4 1,050.4 320.0
Financial investments (debt instruments AFS) 964.5 0.0 964.5
Other assets 260.4 0.0 260.4
Exposure from credit default swaps2 410.0 0.0 410.0
Total balance sheet positions with credit risks 17,614.8 3,989.7 13,625.1
Credit risk
31-12-10
Credit risk
before credit
after credit
risk Credit risk
risk
mitigation mitigation1
mitigation
CHF mns CHF mns CHF mns
Balance sheet
Cash 1,448.2 0.0 1,448.2
Due from banks 2,227.8 1,819.8 408.0
Cash collateral for reverse-repurchase agreements 300.0 300.0 0.0
Trading portfolio assets (debt instruments) 725.1 0.0 725.1
Positive replacement values 197.2 150.1 47.1
Other financial assets at fair value (debt instruments) 8,763.3 0.0 8,763.3
Due from customers 1,427.0 961.5 465.5
Financial investments (debt instruments AFS) 973.6 0.0 973.6
Other assets 268.1 0.0 268.1
Exposure from credit default swaps2 0.0 0.0 0.0
Total balance sheet positions with credit risks 16,330.3 3,231.4 13,098.9
1 Credit risk mitigation is presented on the basis of Basel II regulations and encompasses netting agreements, securities collateral and cash collateral.
2 Default risks relating to the reference entities of credit default swaps where the Vontobel Group acts as the protection seller. Any credit risk vis-à-vis the
counterparty of the credit default swap is included in the IFRS balance sheet in the position “Positive replacement values”.
The above tables show the maximum credit risk arising from all balance sheet positions and the
forms of credit risk mitigation available.

Balance sheet positions with credit risk after credit risk mitigation according to the risk representation
Notes to the consolidated financial statements
Capital
Money Other
Debt market and financial 31-12-11
instruments accounts receivables
Total
CHF mns CHF mns CHF mns CHF mns
Cash 0.0 2,992.3 0.0 2,992.3
Due from banks 0.0 644.0 0.0 644.0
Cash collateral for reverse-repurchase agreements 0.0 0.0 0.0 0.0
Trading portfolio assets (debt instruments) 606.6 0.0 0.0 606.6
Positive replacement values 0.0 0.0 48.1 48.1
Other financial assets at fair value (debt instruments) 7,379.2 0.0 0.0 7,379.2
Due from customers 0.0 320.0 0.0 320.0
Financial investments (debt instruments AFS) 964.5 0.0 0.0 964.5
Other assets 156.1 5.3 99.0 260.4
Exposure from credit default swaps 410.0 0.0 0.0 410.0
Total balance sheet assets with credit risk after mitigation 9,516.4 3,961.6 147.1 13,625.1
Unsecured credit risk from private and institutional investment clients1 0.0 42.5 0.0 42.5
Unsecured credit risk from professional counterparties and issuer risks2 8,750.6 1,863.6 265.9 10,880.1
Total according to tables “Credit risk” 8,750.6 1,906.1 265.9 10,922.6
Difference 765.8 2,055.5 (118.8) 2,702.5
Money Other
Debt market and financial 31-12-10
instruments accounts receivables
Total
CHF mns CHF mns CHF mns CHF mns
Cash 0.0 1,448.2 0.0 1,448.2
Due from banks 0.0 408.0 0.0 408.0
Cash collateral for reverse-repurchase agreements 0.0 0.0 0.0 0.0
Trading portfolio assets (debt instruments) 725.1 0.0 0.0 725.1
Positive replacement values 0.0 0.0 47.1 47.1
Other financial assets at fair value (debt instruments) 8,763.3 0.0 0.0 8,763.3
Due from customers 0.0 465.5 0.0 465.5
Financial investments (debt instruments AFS) 973.6 0.0 0.0 973.6
Other assets 162.1 5.8 100.2 268.1
Exposure from credit default swaps 0.0 0.0 0.0 0.0
Total balance sheet assets with credit risk after mitigation 10,624.1 2,327.5 147.3 13,098.9
Unsecured credit risk from private and institutional investment clients1 0.0 55.1 0.0 55.1
Unsecured credit risk from professional counterparties and issuer risks2 9,914.1 1,962.0 94.8 11,970.9
Total according to tables “Credit risk” 9,914.1 2,017.1 94.8 12,026.0
Difference 710.0 310.4 52.5 1,072.9
1 Paragraph 4.2. of the notes on risk management and risk control
2 Paragraph 4.3. of the notes on risk management and risk control
Vontobel Group, Annual Reports 2011 115

Notes to the consolidated financial statements
Capital
116 Vontobel Group, Annual Reports 2011
The tables on page 115 show a reconciliation of credit risks after credit risk mitigation for all balance
sheet positions with credit risks from a risk management perspective. The difference between
the credit risk after credit risk mitigation from an accounting perspective and from a risk
management perspective is attributable to the following factors:
– The risk figures take account of haircuts (add-on factors on the credit exposure and discount
factors on collateral).
– The risk figures take account of add-ons for potential credit exposures.
– The trade date principle basically applies for accounting purposes, while the value date principle
is used for risk management purposes. This means, for example, that if securities are
sold but the transaction is only settled after the balance sheet date in accordance with the
principle of 'delivery versus payment', the sales price represents a receivable from the counterparty
from an accounting perspective, while no credit risk arises from a risk management
perspective.
– Differences exist between the recognition of credit risk mitigation from a regulatory perspective
and from a risk management perspective.

Notes on the consolidated financial statements
Details on consolidated income statement
1 Net interest income
118 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Interest income from banks and customers 33.6 25.0 8.6 34
Interest income from securities borrowing and reverse-repurchase agreements 6.9 6.4 0.5 8
Interest income from financial assets at amortized costs 40.5 31.4 9.1 29
Dividend income from financial assets available-for-sale 7.1 7.1 0.0 0
Interest income from financial assets available-for-sale 19.2 21.3 (2.1) (10)
Interest and dividend income from financial assets at fair value 26.3 28.4 (2.1) (7)
Total interest income 66.8 59.8 7.0 12
Interest expense from securities lending and repurchase agreements 0.7 0.8 (0.1) (13)
Interest expense from other financial liabilities at amortized costs 5.9 5.9 0.0 0
Interest expense from financial liabilities at amortized costs 6.6 6.7 (0.1) (1)
Total 60.2 53.1 7.1 13
2 Net fee and commission income
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Commission income from lending activities 0.5 0.8 (0.3) (38)
Brokerage fees 127.7 138.6 (10.9) (8)
Custody fees 103.2 114.4 (11.2) (10)
Advisory and management fees 301.6 301.4 0.2 0
Corporate finance 5.9 3.6 2.3 64
Fiduciary transactions 2.9 3.2 (0.3) (9)
Other commission income from securities and investment transactions 26.2 28.7 (2.5) (9)
Total fee and commission income from securities and investment transactions 567.5 589.9 (22.4) (4)
Other fee and commission income 2.6 2.4 0.2 8
Brokerage fees 18.7 22.3 (3.6) (16)
Other commission expense 99.7 92.6 7.1 8
Total commission expense 118.4 114.9 3.5 3
Total 452.2 478.2 (26.0) (5)
3 Trading income
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Securities (206.1) 320.5 (526.6) (164)
Other financial instruments at fair value 400.6 (55.2) 455.8
Forex and precious metals 30.8 8.6 22.2 258
Total 225.3 273.9 (48.6) (18)
Trading income as of 31-12-11 includes an income of CHF 109.9 mn (31-12-10: CHF –15.8 mn), which is attributable to changes in fair value due to a change in
the Group’s own credit risk. Of the total impact, CHF 3.2 mn was realized as of 31-12-10 (31-12-10: CHF –1.1 mn), while the remaining CHF 106.7 mn (previous
year CHF –14.7 mn) is unrealized and is shown in the balance sheet item “Other financial liabilities at fair value” as of 31-12-11. On a cumulative basis, the
changes in own credit risk resulted in a cumulative profit of CHF 141.3 mn, of which CHF 15.4 mn are realized and CHF 125.9 mn are unrealized. This unrealized
impact will be completely reversed over the term of the relevant instruments provided they are not redeemed or repurchased prior to their contractual maturity.

4 Comprehensive income from financial instruments before tax
Notes on the consolidated financial statements
Details on consolidated income statement
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Financial instruments held-for-trading (206.1) 320.5 (526.6) (164)
Other financial instruments at fair value 400.6 (55.2) 455.8
Forex and precious metals 30.8 8.6 22.2 258
Trading income 225.3 273.9 (48.6) (18)
Financial instruments available-for-sale 30.9 49.7 (18.8) (38)
Loans and receivables 40.6 30.8 9.8 32
Financial liabilities measured at amortized costs (6.6) (6.7) 0.1
Total financial instruments income statement
Unrealized gains/(losses) on available-for-sale financial instruments,
290.2 347.7 (57.5) (17)
recorded in other comprehensive income
(Gains)/losses on available-for-sale financial instruments, transferred
(22.8) 11.9 (34.7) (292)
from other comprehensive income to the income statement 3.1 (12.0) 15.1
Comprehensive income before tax 270.5 347.6 (77.1) (22)
Comprehensive income includes interest income, dividend income, net realized and unrealized gains and currency translation adjustments, as well as impairment
losses and reversals.
5 Other income
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Real estate income 0.3 0.7 (0.4) (57)
Income from the sale of property and equipment 21.6 0.0 21.6
Income from the sale of financial investments available-for-sale 6 5.5 21.3 (15.8) (74)
Impairments of financial assets available-for-sale (1.0) 0.0 (1.0)
Income from investments in associates 6 0.2 0.1 0.1 100
Change in the value of the liability to purchase minority interests 0.1 0.0 0.1
Other income 1.3 2.9 (1.6) (55)
Total 28.0 25.0 3.0 12
6 Income from the sale of financial investments
available-for-sale
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Debt instruments 5.3 15.9 (10.6) (67)
Equity instruments 0.2 5.4 (5.2) (96)
Total 5.5 21.3 (15.8) (74)
Income from investments in associates
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Share of profit 0.2 0.1 0.1 100
Impairments 0.0 0.0 0.0
Total 0.2 0.1 0.1 100
Vontobel Group, Annual Reports 2011 119

Notes on the consolidated financial statements
Details on consolidated income statement
7 Personnel expense
120 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Salaries and bonuses 304.9 318.8 (13.9) (4)
Retirement benefit plan expense 44 24.9 26.5 (1.6) (6)
Other social contributions 24.3 26.1 (1.8) (7)
Other personnel expense 19.0 20.9 (1.9) (9)
Total 373.1 392.3 (19.2) (5)
Personnel expense includes the expense for share-based compensation of CHF 17.3 mn (previous year: CHF 19.2 mn).
8 General expense
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Occupancy expense 31.2 33.2 (2.0) (6)
IT, telecommunications and other equipment 61.3 73.7 (12.4) (17)
Travel and representation, public relations, marketing 37.6 41.1 (3.5) (9)
Consulting and audit fees 21.8 23.1 (1.3) (6)
Other general expense 27.0 25.1 1.9 8
Total 178.9 196.2 (17.3) (9)
9 Depreciation of property, equipment and intangible assets
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Depreciation of property and equipment 49.8 50.7 (0.9) (2)
Amortization of other intangible assets 10.1 10.5 (0.4) (4)
Impairments of property and equipment 0.3 0.6 (0.3) (50)
Total 60.2 61.8 (1.6) (3)
10 Value adjustments, provisions and losses
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Impairments on credit risks 0.0 0.8 (0.8) (100)
Decrease of allowances for credit losses (0.1) (0.2) 0.1
Additions to provisions 7.0 7.5 (0.5) (7)
Release of provisions (1.2) (3.3) 2.1
Other 0.9 2.0 (1.1) (55)
Total 6.6 6.8 (0.2) (3)

11 Taxes
Notes on the consolidated financial statements
Details on consolidated income statement
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Statement of tax status
Explanation of the relationship between tax expense
and net profit before taxes:
Current income taxes 36.4 30.4 6.0 20
Deferred income taxes (3.3) (4.6) 1.3
Total 33.1 25.8 7.3 28
Profit before taxes 146.9 173.1 (26.2) (15)
Expected income tax rate of 22% 1 Explanations for higher (lower) tax expense:
32.3 38.1 (5.8) (15)
Applicable tax rates differing from expected rate 3.2 (10.3) 13.5
Tax losses not taken into account 6.4 8.7 (2.3) (26)
Appropriation of non-capitalized deferred taxes on loss carryforwards (0.6) (0.2) (0.4)
Value adjustments on deferred tax assets 0.0 0.2 (0.2) (100)
Other non-deductible expenses (2.2) 0.0 (2.2)
Tax income unrelated to accounting period 6.1 2.0 4.1 205
Participation relief granted to holding companies (13.7) (13.9) 0.2
Other impacts 1.6 1.2 0.4 33
Income tax expense 33.1 25.8 7.3 28
Effective tax rate in % 22.5 14.9
Composition of deferred taxes
Tax loss carryforwards 1.2 0.8 0.4 50
Other 6.9 5.5 1.4 25
Total deferred tax assets2 8.1 6.3 1.8 29
Intangible assets 8.4 10.0 (1.6) (16)
Investments in associates 1.4 1.4 0.0 0
Other provisions 29.2 29.9 (0.7) (2)
Unrealized gains on available-for-sale financial investments 2.8 4.6 (1.8) (39)
Other 11.9 10.7 1.2 11
Total deferred tax liabilities2 53.7 56.6 (2.9) (5)
1 The anticipated income tax rate of 22% corresponds to the average tax rate in Switzerland.
2 According to IAS 12, a company may offset deferred tax assets and liabilities with each other if those assets and liabilities refer to taxes on income levied by
the same tax authority. This condition is fulfilled in the case of companies belonging to the Vontobel Group. The deferred tax assets and deferred tax liabilities
shown in the balance sheet therefore represent the balance of the gross amounts of such assets and liabilities presented here.
Vontobel Group, Annual Reports 2011 121

Notes on the consolidated financial statements
Details on consolidated income statement
122 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Changes in deferred tax assets and liabilities (net)
Balance at the beginning of the year 50.3 54.5 (4.2) (8)
Changes effecting the income statement (2.6) (5.8) 3.2
Changes not effecting the income statement (2.1) 1.5 (3.6) (240)
Change in scope of consolidation 0.0 0.0 0.0
Translation adjustments 0.0 0.1 (0.1) (100)
Total as at the balance sheet date 45.6 50.3 (4.7) (9)
Tax loss carryforwards expire as follows:
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns in %
Within 1 year 0.0 0.0 0.0
From 1 to 5 years 4.8 4.9 (0.1) (2)
After 5 years 64.8 55.3 9.5 17
Total 69.6 60.2 9.4 16
Vontobel Holding AG and its subsidiaries are liable for income tax in most countries. The current tax assets and current tax liabilities reported as of the balance
sheet date, as well as the resulting current tax expense for the period under review, are based partly on estimates and assumptions and may therefore differ from
the amounts determined by the tax authorities in the future. In certain cases where complex tax questions arise, external tax specialists are consulted or
preliminary clarification is obtained from the tax authorities.
In the case of deferred taxes, the level of recognized tax assets depends on assumptions regarding available future taxable profits that are eligible for offset. The
determination of deferred tax assets is essentially based on budget figures and mid-term planning. If a company has posted a series of financial losses in the
recent past, the deferred tax assets are only recognized to the extent that the company has sufficient taxable temporary differences or has convincing other
evidence that sufficient taxable profits will be available in future periods. Recognized deferred tax assets for loss carryforwards eligible for offset amounted to CHF
1.2 mn (31-12-11) or CHF 0.8 mn (31-12-10). Unrecognized loss carryforwards in the amount of CHF 69.6 mn (31-12-11) or CHF 60.2 mn (31-12-10) are
subject to tax rates of 21% to 33% (31-12-11) or 21% to 33% (31-12-10). If recognized in full, the deferred tax assets for loss carryforwards eligible for offset
would total CHF 21.7 mn (31-12-11) or CHF 18.7 mn (31-12-10).
12 Tax effects to other comprehensive income
Amount Tax yield /
31-12-11
Amount net
before tax Tax expense of tax
CHF mns CHF mns CHF mns
Translation differences during the reporting period (2.8) 0.0 (2.8)
Translation differences transferred to the income statement 0.1 0.0 0.1
Income from available-for-sale financial investments during the reporting period (22.8) 2.0 (20.8)
Income from available-for-sale financial investments transferred to the income statement 3.1 (0.3) 2.8
Total other comprehensive income (22.4) 1.7 (20.7)
Amount Tax yield /
31-12-10
Amount net
before tax Tax expense of tax
CHF mns CHF mns CHF mns
Translation differences during the reporting period (32.9) 0.0 (32.9)
Translation differences transferred to the income statement 0.0 0.0 0.0
Income from available-for-sale financial investments during the reporting period 11.9 (0.9) 11.0
Income from available-for-sale financial investments transferred to the income statement (12.0) 1.8 (10.2)
Total other comprehensive income (33.0) 0.9 (32.1)

13 Earnings per share
Notes on the consolidated financial statements
Details on consolidated income statement
31-12-11 31-12-10 Change to 31-12-10
in %
Net profit (CHF mns) 1 113.7 147.8 (34.1) (23)
Weighted average number of shares issued 65,000,000 65,000,000 0 0
Less weighted average number of treasury shares 1,199,637 1,081,468 118,169 11
Weighted average number of shares outstanding (undiluted) 63,800,363 63,918,532 (118,169) (0)
Dilution effect number of shares2 896,735 1,549,414 (652,679) (42)
Weighted average number of shares outstanding (diluted) 64,697,098 65,467,946 (770,848) (1)
Undiluted Group earnings per share (in CHF) 1.78 2.31 (0.53) (23)
Diluted Group earnings per share (in CHF) 1.76 2.26 (0.50) (22)
1 The net profit attributable to the shareholders of Vontobel Holding AG constitutes the basis for the calculation of undiluted as well as diluted earnings per
share.
2 The dilution effect is primarily the result of employee share-based benefit programs. The dilution effect from shares that will have to be issued if outstanding
in-the-money options are exercised is insignificant. Shares that will have to be issued if outstanding out-of-the-money options are exercised do not have any
dilution effect in the financial year but could dilute future earnings per share. The potential dilution effect is insignificant.
Vontobel Group, Annual Reports 2011 123

14 Financial instruments at fair value through profit and loss
Trading portfolio assets
Notes to the consolidated financial statements
Details on consolidated balance sheet
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Debt instruments
Debt instruments of governments and public sector entities 133.4 177.5 (44.1) (25)
Debt instruments of financial institutions 298.7 475.3 (176.6) (37)
Debt instruments of corporations 174.5 72.3 102.2 141
Total 606.6 725.1 (118.5) (16)
of which listed 586.2 688.7 (102.5) (15)
of which unlisted 20.4 36.4 (16.0) (44)
Equity instruments
Listed 781.1 1,240.7 (459.6) (37)
Unlisted 2.5 0.0 2.5
Total 783.6 1,240.7 (457.1) (37)
Units in investment funds
Listed 48.0 34.5 13.5 39
Unlisted 36.1 46.3 (10.2) (22)
Total 84.1 80.8 3.3 4
Precious metals 59.0 51.1 7.9 15
Total trading positions 1,533.3 2,097.7 (564.4) (27)
of which lent or delivered as collateral 91.5 80.4 11.1 14
Financial instruments that are lent or delivered as collateral are reported in the separate balance sheet item “Securities lent or delivered as collateral”.
Vontobel Group, Annual Reports 2011 125

Notes to the consolidated financial statements
Details on consolidated balance sheet
Trading portfolio liabilities
126 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Debt instruments 188.8 169.4 19.4 11
of which listed 188.8 167.9 20.9 12
of which unlisted 0.0 1.5 (1.5) (100)
Equity instruments 855.2 1,046.4 (191.2) (18)
of which listed 673.5 850.2 (176.7) (21)
of which unlisted 181.7 196.2 (14.5) (7)
Total 1,044.0 1,215.8 (171.8) (14)
Open derivative instruments
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Positive replacement values 113.0 197.2 (84.2) (43)
Negative replacement values 752.7 544.2 208.5 38
Other financial assets at fair value through profit and loss
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Debt instruments
Debt instruments of governments and public sector entities 833.5 952.6 (119.1) (13)
Debt instruments of financial institutions 4,491.1 6,026.0 (1,534.9) (25)
Debt instruments of corporations 2,054.6 1,784.7 269.9 15
Total 7,379.2 8,763.3 (1,384.1) (16)
of which listed 6,159.9 6,390.6 (230.7) (4)
of which unlisted 1,219.3 2,372.7 (1,153.4) (49)
Equity instruments
Listed 0.7 0.7 0.0 0
Unlisted 0.0 0.0 0.0
Total 0.7 0.7 0.0 0
Units in investment funds
Listed 0.0 0.0 0.0
Unlisted 60.6 64.1 (3.5) (5)
Total 60.6 64.1 (3.5) (5)
Total other financial assets at fair value through profit and loss 7,440.5 8,828.1 (1,387.6) (16)
of which lent or delivered as collateral 493.7 351.5 142.2 40
Financial instruments that are lent or delivered as collateral are reported in the separate balance sheet item “Securities lent or delivered as collateral”.

Other financial liabilities at fair value through profit and loss
Notes to the consolidated financial statements
Details on consolidated balance sheet
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Structured products 6,802.7 8,183.0 (1,380.3) (17)
of which listed 5,238.3 6,981.2 (1,742.9) (25)
of which unlisted 1,564.4 1,201.8 362.6 30
15 Due from customers, net
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Other accounts receivable 1,372.5 1,429.5 (57.0) (4)
Less allowances for credit risks (2.1) (2.5) 0.4
Total 1,370.4 1,427.0 (56.6) (4)
Allowances for credit risks
Balance at the beginning of the year (2.5) (8.0) 5.5
Utilization in conformity with designated purpose 0.4 6.2 (5.8) (94)
Doubtful interest income1 (0.1) (0.1) 0.0 0
(Increase)/decrease recognized in the income statement, net 0.1 (0.6) 0.7
Allowances as at the balance sheet date (2.1) (2.5) 0.4
Impaired loans
Impaired loans 2.9 3.3 (0.4) (12)
Estimated proceeds of liquidating collateral 0.8 0.8 0.0 0
Impaired loans, net 2.1 2.5 (0.4) (16)
Allowance for credit losses related to impaired loans (2.1) (2.5) 0.4
Average impaired loans 4.8 3.3 1.5 45
Non-performing loans 1
Non-performing loans 2.9 3.3 (0.4) (12)
Allowance for credit losses related to non-performing loans (2.1) (2.5) 0.4
Average non-performing loans 4.8 3.3 1.5 45
1 Interest of CHF 0.1 mn (previous year CHF 0.1 mn) on non-performing loans that had not yet been received was capitalized.
Change in non-performing loans
Non-performing loans at the beginning of the year 3.3 8.0 (4.7) (59)
Net increase/(decrease) 0.0 1.5 (1.5) (100)
Write-offs and disposals (0.4) (6.2) 5.8
Non-performing loans as at the balance sheet date 2.9 3.3 (0.4) (12)
Vontobel Group, Annual Reports 2011 127

Notes to the consolidated financial statements
Details on consolidated balance sheet
16 Financial investments
Carried at fair value (“available-for-sale”)
128 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Money market paper 68.1 0.0 68.1
Debt instruments
Debt instruments of governments and public sector entities 270.9 344.8 (73.9) (21)
Debt instruments of financial institutions 477.8 528.7 (50.9) (10)
Debt instruments of corporations 147.7 100.1 47.6 48
Total 896.4 973.6 (77.2) (8)
of which listed 792.6 769.8 22.8 3
of which unlisted 103.8 203.8 (100.0) (49)
Equity instruments and other participations
Listed 102.2 124.5 (22.3) (18)
Unlisted 0.9 1.1 (0.2) (18)
Total 103.1 125.6 (22.5) (18)
Units in investment funds
Listed 13.7 12.6 1.1 9
Unlisted 4.8 1.0 3.8 380
Total 18.5 13.6 4.9 36
Total financial investments carried at fair value (“available-for-sale”) 1,086.1 1,112.8 (26.7) (2)
of which lent or delivered as collateral 45.8 68.2 (22.4) (33)
Financial instruments that are lent or delivered as collateral are reported in the separate balance sheet item “Securities lent or delivered as collateral”.

17 Investments in associates
Notes to the consolidated financial statements
Details on consolidated balance sheet
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Balance at the beginning of the year 0.6 0.6 0.0 0
Increases 0.0 0.0 0.0
Decreases 0.0 0.0 0.0
Equity income 0.2 0.1 0.1 100
Impairments 0.0 0.0 0.0
Translation differences 0.0 (0.1) 0.1
Total as at the balance sheet date 0.8 0.6 0.2 33
Significant subsidiaries consolidated
using the equity method
Share capital Interest held in %
Domicile Activity Currency mns 31-12-11 31-12-10
Vontobel Treuhand AG Vaduz Fiduciary CHF 0.5 49 49
Deutsche Börse Commodities GmbH Frankfurt Issues EUR 1.0 16 16
Vontobel Group, Annual Reports 2011 129

Notes to the consolidated financial statements
Details on consolidated balance sheet
18 Property and equipment
130 Vontobel Group, Annual Reports 2011
Bank
Software in Other fixed Total fixed
buildings IT systems Software development assets assets
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Acquisition cost
Balance as of 01-01-10 35.2 34.8 228.6 3.0 60.5 362.1
Additions 0.0 6.6 27.2 3.0 4.2 41.0
Disposals 0.0 (23.0) (19.8) 0.0 (6.4) (49.2)
Change in scope of consolidation 0.0 0.0 0.0 0.0 0.0 0.0
Translation differences (2.9) (0.3) (0.3) 0.0 (1.2) (4.7)
Balance as of 31-12-10 32.3 18.1 235.7 6.0 57.1 349.2
Additions 0.2 7.7 39.4 6.9 1.1 55.3
Disposals (15.2) (5.6) (15.4) 0.0 (3.6) (39.8)
Change in scope of consolidation 0.0 0.0 0.0 0.0 (0.6) (0.6)
Translation differences (0.4) 0.0 (0.1) 0.0 (0.2) (0.7)
Balance as of 31-12-11 16.9 20.2 259.6 12.9 53.8 363.4
Cumulative depreciation
Balance as of 01-01-10 (9.9) (24.1) (87.0) 0.0 (23.3) (144.3)
Depreciation (0.9) (8.2) (32.4) 0.0 (9.2) (50.7)
Impairment losses 0.0 (0.1) (0.3) 0.0 (0.2) (0.6)
Reversals 0.0 0.0 0.0 0.0 0.0 0.0
Disposals 0.0 23.0 19.8 0.0 6.4 49.2
Change in scope of consolidation 0.0 0.0 0.0 0.0 0.0 0.0
Translation differences 1.0 0.2 0.3 0.0 0.5 2.0
Balance as of 31-12-10 (9.8) (9.2) (99.6) 0.0 (25.8) (144.4)
Depreciation (0.9) (5.6) (35.9) 0.0 (7.4) (49.8)
Impairment losses 0.0 0.0 0.0 0.0 (0.3) (0.3)
Reversals 0.0 0.0 0.0 0.0 0.0 0.0
Disposals 4.8 5.6 15.4 0.0 3.5 29.3
Change in scope of consolidation 0.0 0.0 0.0 0.0 0.2 0.2
Translation differences 0.2 0.0 0.0 0.0 0.1 0.3
Balance as of 31-12-11 (5.7) (9.2) (120.1) 0.0 (29.7) (164.7)
Net carrying values 31-12-10 22.5 8.9 136.1 6.0 31.3 204.8
Net carrying values 31-12-11 11.2 11.0 139.5 12.9 24.1 198.7
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Additional information on property and equipment
Tangible assets in finance lease 1.8 2.1 (0.3) (14)
Fire insurance value of real estate 12.3 23.5 (11.2) (48)
Fire insurance value of other fixed assets 82.5 82.2 0.3 0
The fixed assets in finance lease comprise information technology equipment.
In December 2011, Bank Vontobel AG sold its property in Geneva. At the same time, it concluded an operating lease agreement with the new owner that will run
to the end of 2012 with the option of extending it for one year. The transaction generated a gain of CHF 21.6 mn, which is recorded in the item “Other income”.
The Vontobel Group did not enter into any other significant sale and lease-back transactions.

19 Goodwill and other intangible assets
Notes to the consolidated financial statements
Details on consolidated balance sheet
Other
Total
intangible intangible
Goodwill assets assets
CHF mns CHF mns CHF mns
Acquisition cost
Balance as of 01-01-10 97.9 93.5 191.4
Additions 0.0 0.0 0.0
Disposals 0.0 0.0 0.0
Change in scope of consolidation 0.0 0.0 0.0
Translation differences 0.0 0.0 0.0
Balance as of 31-12-10 97.9 93.5 191.4
Additions 0.0 0.0 0.0
Disposals 0.0 (11.0) (11.0)
Change in scope of consolidation 0.0 0.0 0.0
Translation differences 0.0 0.0 0.0
Balance as of 31-12-11 97.9 82.5 180.4
Cumulative depreciation
Balance as of 01-01-10 0.0 (30.2) (30.2)
Amortization (10.5) (10.5)
Impairment losses 0.0 0.0 0.0
Reversals 0.0 0.0
Disposals 0.0 0.0 0.0
Change in scope of consolidation 0.0 0.0 0.0
Translation differences 0.0 0.0 0.0
Balance as of 31-12-10 0.0 (40.7) (40.7)
Amortization (10.1) (10.1)
Impairment losses 0.0 0.0 0.0
Reversals 0.0 0.0
Disposals 0.0 11.0 11.0
Change in scope of consolidation 0.0 0.0 0.0
Translation differences 0.0 0.0 0.0
Balance as of 31-12-11 0.0 (39.8) (39.8)
Net carrying values 31-12-10 97.9 52.8 150.7
Net carrying values 31-12-11 97.9 42.7 140.6
Capitalized goodwill amounted to CHF 97.9 mn as of 31-12-11 (previous year CHF 97.9 mn) and
originated from the following business combinations:
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Banque Tardy, de Watteville & Cie SA 18.2 18.2 0.0 0
Harcourt Investment Consulting AG 51.5 51.5 0.0 0
Commerzbank (Schweiz) AG 28.2 28.2 0.0 0
Total 97.9 97.9 0.0 0
Vontobel Group, Annual Reports 2011 131

Notes to the consolidated financial statements
Details on consolidated balance sheet
132 Vontobel Group, Annual Reports 2011
The following organizational units represent the lowest level at which the goodwill allocated to
them is monitored for internal management purposes:
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Private Banking segment 36.2 36.2 0.0 0
Latin Europe division 18.2 18.2 0.0 0
Asset Management segment 17.2 17.2 0.0 0
Harcourt division 26.3 26.3 0.0 0
Total 97.9 97.9 0.0 0
20 Other assets
The above goodwill positions are subject to an annual impairment test, which is conducted in the
third quarter of each year. If events or a change of circumstances indicate a possible impairment,
the test is carried out more frequently to determine whether the book value of the relevant organizational
unit exceeds its recoverable amount. The recoverable amount is the higher of the fair
value less costs to sell and the value in use. If the book value of the organizational unit exceeds
the recoverable amount, a goodwill impairment is recorded.
When conducting an impairment test, the Vontobel Group begins by comparing the book value
of the organizational unit with its fair value less costs to sell. Assets under management are a key
factor that is considered in the case of all the organizational units that are assessed because it has
a significant impact on their future earnings potential. The implicit multiplier for assets under
management is calculated on the basis of the market capitalization of companies engaging in
similar business activities, less reported shareholders’ equity. If there is a difference between the
gross margins of the organizational unit under review and the peer group and/or other factors
exist that are relevant for the impairment test, the multiplier is adjusted accordingly. If the book
value of the organizational unit exceeds the fair value calculated using the adjusted multipliers
less costs to sell, the book value is subsequently compared with the value in use of the organizational
unit.
In the financial year 2011, adjusted multipliers for assets under management of 0.5% to 1.3%
(2010: 0.5% to 1.7%) were defined for the different organizational units. The fair value calculated
using these multipliers less costs to sell exceeded the book value of all organizational units.
Management determined that no reasonably possible change in the assumptions would result in
the book value of an organizational unit significantly exceeding its recoverable amount.
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Value-added tax and other tax receivables 6.4 7.9 (1.5) (19)
Prepaid pension costs 44 29.8 29.3 0.5 2
Settlement and clearing accounts 0.4 0.1 0.3 300
Other receivables 5.5 18.9 (13.4) (71)
Other 3.6 3.8 (0.2) (5)
Total 45.7 60.0 (14.3) (24)

21 Assets pledged or assigned as security
for own liabilities
Notes to the consolidated financial statements
Details on consolidated balance sheet
31-12-11 31-12-10
Carrying Actual Carrying Actual
amount liability amount liability
CHF mns CHF mns CHF mns CHF mns
Trading portfolio assets 27.7 – 8.7 –
Financial assets 768.7 – 345.1 –
Other assets 0.0 – 153.5 –
Total 796.4 1,260.8 507.3 642.1
Assets are pledged for collateralized credit lines with central banks, security deposits with respect to stock exchange membership, OTC contracts as well as due to
customers.
The transactions are carried out at fair market conditions.
22 Securities lending and borrowing operations and securities
repurchase and reverse-repurchase transactions
31-12-11 31-12-10
Cash collateral for Cash collateral for
securities reverse- securities reverse-
borrowing repurchase borrowing repurchase
agreements agreements agreements agreements
CHF mns CHF mns CHF mns CHF mns
Due from banks 0.0 601.0 0.0 300.0
Due from customers 0.0 500.0 0.0 0.0
Total balance sheet position cash collateral 0.0 1,101.0 0.0 300.0
Other financial instruments at fair value 0.0 0.0 0.0 0.0
Total 0.0 1,101.0 0.0 300.0
31-12-11 31-12-10
Cash collateral for Cash collateral for
securities
securities
lending repurchase lending repurchase
agreements agreements agreements agreements
CHF mns CHF mns CHF mns CHF mns
Due to banks 0.0 0.0 0.0 0.0
Due to customers 0.0 0.0 0.0 0.0
Total 0.0 0.0 0.0 0.0
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Book value of securities in the bank’s possession that have been lent or given as
collateral in securities lending and borrowing operations or have been transferred in
repurchase transactions
of which those for which the right to resell or repledge as collateral
631.0 500.1 130.9 26
has been granted without restriction
Fair value of securities received as collateral or borrowed in securities lending and
borrowing operations or received through reverse-repurchase transactions for which
631.0 500.1 130.9 26
the right to resell or repledge as collateral has been granted without restriction 1,952.2 909.2 1,043.0 115
of which fair value of securities resold or repledged as collateral 1,182.0 338.7 843.3 249
Vontobel Group, Annual Reports 2011 133

Notes to the consolidated financial statements
Details on consolidated balance sheet
23 Due to customers
134 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Due to customers on savings and deposit accounts 6.2 6.8 (0.6) (9)
Other accounts due, on time and demand 7,532.5 4,918.9 2,613.6 53
Total 7,538.7 4,925.7 2,613.0 53
24 Other liabilities
31-12-11 31-12-10 Change to 31-12-10
Note CHF mns CHF mns CHF mns in %
Liabilities towards own employee benefit plans 44 3.1 4.0 (0.9) (23)
Value-added tax and other tax liabilities 11.0 12.1 (1.1) (9)
Settlement and clearing accounts 2.0 0.6 1.4 233
Other liabilities 12.5 25.8 (13.3) (52)
Others 5.3 6.7 (1.4) (21)
Total 33.9 49.2 (15.3) (31)
25 Provisions
2011 2010
Other Total Total
CHF mns CHF mns CHF mns
Balance at the beginning of the year 10.4 10.4 9.0
Utilization in conformity with designated purpose (3.8) (3.8) (2.6)
Increase in provisions recognized in the income statement 7.0 7.0 7.5
Release of provisions recognized in the income statement (1.2) (1.2) (3.3)
Change in scope of consolidation 0.0 0.0 0.0
Translation differences 0.0 0.0 (0.2)
Provisions as at the balance sheet date 12.4 12.4 10.4
Short-term provisions 12.0 12.0 10.0
Long-term provisions 0.4 0.4 0.4
Total 12.4 12.4 10.4
Other provisions consist of provisions for process risks and other liabilities.
A provision is recorded if, as a result of a past event, the Group has a current liability as of the balance sheet date that will probably lead to an outflow of funds,
the level of which can be reliably estimated. When determining whether a provision should be recorded and whether the amount of the provision is appropriate,
the best possible estimates and assumptions as of the balance sheet date are used; these estimates and assumptions may be adapted at a later date if necessary,
based on new findings and circumstances.
The Vontobel Group is involved in various legal proceedings in the course of its normal business operations. A provision is recorded in respect of current and
potential legal proceedings if the above recognition criteria are met. In certain cases, external legal specialists are consulted to determine whether this is the case.

26 Share capital
Notes to the consolidated financial statements
Details on consolidated balance sheet
Share capital Authorized capital
Number Par value Number Par value
of shares CHF mns of shares CHF mns
Balance as of 01-01-09 65,000,000 65.0 0 0.0
Balance as of 31-12-09 65,000,000 65.0 0 0.0
Balance as of 31-12-10 65,000,000 65.0 0 0.0
Balance as of 31-12-11 65,000,000 65.0 0 0.0
The share capital is fully paid in.
Authorized capital
In the financial years 2010 and 2011 the Board of Directors did not apply for the creation of
authorized capital.
Contingent share capital
There is no contingent share capital.
Treasury shares Number CHF mns
Balance as of 01-01-10 1,344,344 49.5
Purchases 2,618,309 83.2
Disposals (2,503,012) (78.5)
Balance as of 31-12-10 1,459,641 54.2
Purchases 1,939,947 55.2
Disposals (1,796,603) (58.6)
Balance as of 31-12-11 1,602,985 50.8
As of 31-12-11 Vontobel Group held 8,621 (previous year 6,398) treasury shares to secure options and structured products.
Own shares were offset against shareholders' equity in accordance with IAS 32.
Underlying shares
31-12-11 31-12-10
Options and structured products Number 1 Number 1
Call options (19,150) (1,200)
Put options 7,000 2,680
Structured products (2,649) (36,244)
1 A negative (positive) symbol indicates that if the instrument is exercised, the Vontobel company that acted as issuer would be obliged to deliver (would receive
delivery of) the corresponding number of shares of Vontobel Holding AG.
In the case of these derivative instruments, which are issued by a Vontobel Group company, the underlying instrument is the share of Vontobel Holding AG.
Vontobel Group, Annual Reports 2011 135

Notes to the consolidated financial statements
Details on consolidated balance sheet
27 Unrealized gains and losses on financial investments
136 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10
Unrealized Unrealized Unrealized Unrealized
gains losses
gains losses
CHF mns CHF mns CHF mns CHF mns
Equity instruments and other participations 34.2 0.0 56.7 (0.5)
Units in investment funds 1.9 (0.9) 2.1 (0.2)
Debt instruments 4.7 (3.6) 2.2 (4.2)
Total before taxes 40.8 (4.5) 61.0 (4.9)
Taxes (3.8) 0.8 (5.6) 0.8
Total net of tax1 37.0 (3.7) 55.4 (4.1)
1 The total amount after taxes includes exchange differences in the amount of CHF –0.5 mn (previous year CHF –0.5 mn).

28 Compensation paid to governing bodies
The governing bodies of Vontobel Group comprise the members of the Board of Directors of Vontobel
Holding AG and Group Executive Management. Additional information about the current members
of governing bodies can be found in the Corporate Governance section of this annual report.
Compensation of members of the governing bodies is decided by the Nomination and Compensation
Committee (NCC) of the Board of Directors. The Board of Directors decides on the remuneration
of the Chairman. The composition of the NCC is likewise disclosed in the section on
Corporate Governance. The compensation paid to these persons is as follows. Compensation is
recognized in the financial year in which it was accrued. It is thus reported according to the accrual
principle, irrespective of cash flows. This does not include the cost of performance shares,
which is recorded during the three-year vesting period. However, the allocation of the shares is
shown when the vesting conditions are met and the performance shares are transferred.
Members of the Board of Directors of Vontobel Holding AG and
Bank Vontobel AG
Notes to the consolidated financial statements
Transactions with related parties
31-12-11 1 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Compensation for the financial year
Short-term employee benefits 2.8 2.5 0.3 12
Post-employment benefits 0.1 0.0 0.1
Other long-term benefits 0.0 0.0 0.0
Termination benefits 0.0 0.0 0.0
Equity compensation benefits bonus shares2 0.5 1.0 (0.5) (50)
Total mandate-related compensation for the financial year3 3.4 3.5 (0.1) (3)
Compensation for additional services 0.0 0.0 0.0
Total compensation for the financial year 3.4 3.5 (0.1) (3)
1 Including compensation of two former members of the Board of Directors pro rata temporis and of two members since they joined the Board of Directors.
2 The members of the Board of Directors received a total of 27,906 (previous year 31,581) shares of Vontobel Holding AG as part of their compensation for the
year under review, of which 25,169 (previous year 24,630) shares entail a conditional right to receive performance shares following the expiry of a three-year
vesting period.
3 The cost of the performance shares is not included in the calculation of share-based compensation during the vesting period of the shares.
Compensation of the members of the Board of Directors for the financial year
Variable Variable
Basic compencompen- Other
compen- sation paid sation paid compen- 31-12-11 31-12-10
sation in cash in shares1 sation Total Total
Name Function CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000
Herbert J. Scheidt Chairman2 462.9 464.1 464.1 61.5 1,452.6 n/a
Bruno Basler Vice-Chairman2 196.5 0.0 9.0 16.3 221.8 210.3
Prof. Dr Ann-Kristin Achleitner Member 150.0 0.0 9.0 22.0 181.0 192.2
Dr Philippe Cottier Member 150.0 0.0 9.0 23.9 182.9 190.3
Peter Quadri Member 136.7 0.0 9.0 13.3 159.0 173.2
Dr Frank Schnewlin Member 170.0 0.0 9.0 22.0 201.0 202.6
Clara C. Streit Member2 99.4 0.0 6.0 14.3 119.7 n/a
Dr Pierin Vincenz Member 130.0 0.0 9.0 4.4 143.4 4 169.64 Dr Urs Widmer Chairman3 286.0 340.0 0.0 14.2 640.2 2,126.3
Dr Wolfhard Graetz Vice-Chairman3 64.0 0.0 3.0 4.3 71.3 270.7
Total 1,845.5 804.1 527.1 196.2 3,372.9 3,535.2
1 Allocation of shares of Vontobel Holding AG that are subject to a holding period of three years, during which they cannot be sold.
2 From 4 May 2011
3 Until 3 May 2011
4 Of which payment of the cash component of CHF 134,400 (previous year CHF 133,600) to Raiffeisen Schweiz
Vontobel Group, Annual Reports 2011 137

Notes to the consolidated financial statements
Transactions with related parties
138 Vontobel Group, Annual Reports 2011
Allocation of shares from the long-term employee share-based benefit programme
The Vontobel Group’s compensation concept focuses on the achievement of sustained success.
The granting of performance shares is a long-term component of this compensation system. The
cost of performance shares is not included in share-based compensation during their vesting period.
The number of shares allotted in the year under review is calculated on the basis of the
number of bonus shares received for the 2007 financial year as well as the performance of the
business from 2008 to 2010, measured in terms of the average return on equity and the average
BIS tier 1 capital ratio. In accordance with the relevant IFRS rules, the cost per share recorded as
equity compensation benefits was CHF 31.70 and was included on a pro rata temporis basis over
the vesting period. The market price at the allocation date in April 2011 was CHF 36.40 and it
was CHF 21.00 at the balance sheet date.
31-12-11 1 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns
or number or number or number in %
Equity compensation benefits performance shares in CHF mns 1.8 1.7 0.1 6
Value of performance shares at the date on which they were allotted in CHF mns 2.3 0.9 1.4 156
Number of performance shares allotted 66,658 28,849 37,809 131
thereof Dr Urs Widmer 66,658 28,849 37,809 131
1 The performance shares allocated include a total of 40,619 performance shares that were allotted to Dr Urs Widmer in accordance with the regulations
governing the share participation plan due to his resignation as Chairman of the Board of Directors of Vontobel Holding AG upon reaching the maximum age
limit.
Members of the Group Executive Management
31-12-11 1 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Compensation for the financial year
Base salary 3.2 3.2 0.0 0
Other short-term employee benefits 0.1 0.1 0.0 0
Cash component of bonus 3.1 4.9 (1.8) (37)
Post-employment benefits 0.6 0.5 0.1 20
Other long-term benefits 0.0 0.0 0.0
Termination benefits 0.0 0.0 0.0
Equity compensation benefits bonus shares2 3.1 4.9 (1.8) (37)
Total contract-related compensation for the financial year 10.1 13.6 (3.5) (26)
Compensation for additional services 0.0 0.0 0.0
Total compensation the financial year 10.1 13.6 (3.5) (26)
Number of persons receiving compensation 7 6 1 17
1 Including compensation paid to one member of the Group Executive Management until he joined the Board of Directors of Vontobel Holding AG and one new
member pro rata temporis.
2 A total of 165,994 (previous year 167,072) Vontobel Holding AG shares were allocated to members of the Group Executive Management. These bonus shares
entail a conditional right to receive performance shares following the expiry of a three-year vesting period.
Allocation of shares from the long-term employee share-based benefit programme
The Vontobel Group’s compensation concept focuses on the achievement of sustained success.
The granting of performance shares is a long-term component of this compensation system. The
cost of performance shares is not included in share-based compensation during their vesting period.
However, the conditional right to receive performance shares was included in the calculation
to determine the member of the Group Executive Management with the highest total compensation
with a weighting of one performance share per bonus share.
The number of shares allotted in the year under review is calculated on the basis of the number
of bonus shares received for the 2007 financial year as well as the performance of the business
from 2008 to 2010, measured in terms of the average return on equity and the average BIS tier
1 capital ratio. In accordance with the relevant IFRS rules, the cost per share recorded as equity

compensation benefits was CHF 31.70 and was included on a pro rata temporis basis over the
vesting period. The market price at the allocation date in April 2011 was CHF 36.40 and it was
CHF 21.00 at the balance sheet date.
Notes to the consolidated financial statements
Transactions with related parties
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns
or number or number or number in %
Equity compensation benefits performance shares in CHF mns 3.7 7.6 (3.9) (51)
Value of performance shares at the date on which they were allotted in CHF mns 4.2 4.1 0.1 2
Number of performance shares allotted 116,491 128,180 (11,689) (9)
Number of persons receiving compensation 4 4 0 0
In addition to the performance shares shown in the above table that were allocated under the long-term employee share-based benefit programme, one member
of the Group Executive Management was allocated 71,124 performance shares. The vesting conditions for these shares were determined in connection with the
sale of a minority stake in a Vontobel group company to Vontobel Holding AG.
Of which paid to the member with the highest total compensation for the financial year
Bonus paid Bonus paid
Financial Base salary in cash in shares1 Other
compen-
Pension plan sation Total
year Name Function CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000 CHF 1,000
2011 Roger Studer Head Investment Banking 500.0 900.0 900.0 89.2 23.0 2,412.2
2010 Herbert J. Scheidt CEO 704.6 1,300.0 1,300.0 118.7 13.0 3,436.3
1 The member of the Group Executive Management was awarded 48,807 shares (previous year: 44,782 shares) of Vontobel Holding AG as part of his
compensation for the year under review. These shares are subject to a holding period of three years, during which they cannot be sold. These bonus shares
entail a conditional right to receive performance shares following the expiry of a three-year vesting period.
The Vontobel Group’s compensation concept focuses on the achievement of sustained success.
The granting of performance shares is a long-term component of this compensation system. The
number of shares allotted in the year under review is calculated on the basis of the number of
bonus shares received for the 2007 financial year as well as the performance of the business from
2008 to 2010, measured in terms of the average return on equity and the average BIS tier 1
capital ratio. Further details of the programme can be found on page 82 and in note 29.
31-12-11 31-12-10
Number of performance shares allotted 43,791 49,829
Governing body loans and employee terms and conditions
Loans to members of the Vontobel Group’s governing bodies and to significant shareholders and
the persons and companies related to them may only be granted in accordance with the generally
recognized principles of the banking industry. Governing body members are generally treated
like employees, and that particularly in regard to lending terms. Governing body loans must be
approved by the Board of Directors of Vontobel Holding AG in addition to the levels of authority
applicable to employees.
As of 31 December 2011 and 31 December 2010, no loans to members of the Vontobel Group’s
governing bodies or related parties were outstanding. In the case of members of the Vontobel
Group’s governing bodies and major shareholders, margin calls that are fully secured by collateral
totalled CHF 1.2 mn (previous year CHF 0.0 mn) as of 31 December 2011. No loans to former
members of the Board of Directors or the Group Executive Management were outstanding that
were not granted according to standard terms and conditions.
The Vontobel Group does not grant mortgage loans to governing body members or employees.
It provides mortgage loans to governing body members or employees with selected outside
Vontobel Group, Annual Reports 2011 139

Notes to the consolidated financial statements
Transactions with related parties
140 Vontobel Group, Annual Reports 2011
banks at a preferential rate of 1% below the usual rate up to a maximum loan amount of CHF 1
million per borrower. The Vontobel Group does not assume any credit risks or other obligations
in the process.
The members of the Board of Directors and Group Executive Management conduct usual banking
transactions with Vontobel Group at the same conditions as employees.
29 Management and employee share based benefit programs
Under the current stock ownership plan introduced in early 2005, the employees of Vontobel
Group can draw 25% of their variable salary in shares of Vontobel Holding AG (bonus shares).
These shares are acquired at a price equivalent to 80% of the market price. The relevant stock
exchange price corresponds to the average closing price of the month of January of the year in
which the bonus is paid out. The bonus shares are subject to a holding period of 3 years, during
which time they cannot be sold. Members of Executive Management are allocated 50% of their
entire bonus in shares at the aforementioned conditions.
After drawing bonus shares employees will automatically participate in the performance share
program, which entitles them to receive additional shares (performance shares) at no cost after
three years’ time provided the company’s financial performance has met certain hurdles and their
employment contract has not been terminated. The amount of performance shares allocated
depends on the number of bonus shares drawn as well as on the results of the preceding three
financial years, in particular on the average return on equity (ROE) together with the average BIS
tier 1 capital ratio. The performance shares allocated to employees are not subject to any holding
period.
Previous stock ownership plans for top management
An earlier management stock ownership plan that was discontinued at the end of 2002 was designed
to give top-level executives a significant participation in Vontobel Holding AG. Shares
were allotted at no cost and were subject to a holding period of ten years. Upon termination of
the employment contract the management executives are required to tender the shares received
within the scope of this managment participation program to Vontobel Holding AG. The price of
the shares is calculated using the average price of the past 90 trading sessions prior to repurchase
by Vontobel Holding AG. Shares distributed under stock ownership plans are included in personnel
expense at fair value, adequately taking into consideration trading and selling restrictions.
Employees
Members of the
Board of Directors and
the top management 1
31-12-11 31-12-10 31-12-11 31-12-10
Number Number Number Number
Holdings of blocked shares at the beginning of the year 1,480,882 1,284,657 1,073,177 1,034,890
Allotted shares and transfers (addition) 442,758 583,884 198,646 219,597
Shares for which the holding period has lapsed (433,896) (317,434) (175,699) (134,902)
Shares of employees/members who have left the Group and transfers (reduction) (66,038) (70,225) (86,960) (46,408)
Shares bought back from the management plan – – (140,000) 0
Holdings of blocked shares as at the balance sheet date 1,423,706 1,480,882 869,164 1,073,177
Charged as personnel expense in the year under review (CHF mns) (0.4) 1.0 (0.2) 0.4
Charged as personnel expense in the preceding year (CHF mns) 16.1 16.3 7.2 6.4
Average price of shares upon allotment (CHF) 35.45 32.40 35.35 32.25
Fair value of blocked shares as at the balance sheet date (CHF mns) 29.9 52.7 18.3 38.2
1 In addition to the members of the Group Executive Management, the top management also includes the shares of managers that are included in the
shareholder pooling agreement (see Chapter “Information relating to Corporate Governance”, page 45).

Rights to receive performance shares
The cost of the performance share program is accrued over the respective vesting period and is
charged as personnel expense. The estimated charge to personnel expense for the total remaining
vesting periods takes account of expectations regarding the performance of the business (ROE
and BIS tier 1 capital ratio) and the probability that employees will leave the company. In view of
expectations regarding the performance of the business, the calculation of the number of rights
is based on the assumption that between 79% and 87% (previous year between 78% and 98%)
of the original number of bonus shares will be allotted as performance shares to eligible employees
in connection with the individual programmes.
If the ROE in 2012 and 2013 is 3 percentage points higher (lower) than expected due to an improvement
(deterioration) in the performance of the business, between 79% and 113% (49%
and 79%) of the original number of bonus shares will be granted as performance shares to eligible
employees in connection with the individual programmes. If the BIS tier 1 capital ratio in 2012
and 2013 is 2 percentage points higher (lower) than expected, these factors would be between
79% and 87% (79% and 87%). As a result, a reasonably possible deviation from the expected
values would not have a significant impact on the Vontobel Group's future personnel expense.
Notes to the consolidated financial statements
Transactions with related parties
Employees
Chairman of the Board of
Directors and members of the
Group Executive Management
31-12-11 31-12-10 31-12-11 31-12-10
Number Number Number Number
Holdings of rights at the beginning of the year 1,314,132 1,383,296 507,154 574,757
Allotted rights and transfers (addition) 442,758 583,665 191,702 213,246
Recorded performance shares (373,636) (384,974) (183,149) (157,029)
Forfeited rights and transfers (reduction) (33,490) (75,586) 0 (50,032)
Change of rights due to modified parameters (178,866) (192,269) (92,169) (73,788)
Holdings of rights as at the balance sheet date 1,170,898 1,314,132 423,538 507,154
Figures in CHF mns
Charged as personnel expense in the year under review
Estimated personnel expense for the remaining vesting periods including future
9.8 10.4 4.0 3.9
terminations
Estimated personnel expense for the remaining vesting periods excluding future
12.1 13.3 4.5 5.2
terminations 14.0 15.4 5.2 6.0
Vontobel Group, Annual Reports 2011 141

Notes to the consolidated financial statements
Transactions with related parties
30 Share and option ownership
Members of the Board of Directors
Name Function
142 Vontobel Group, Annual Reports 2011
Shares
Number
31-12-11 31-12-10
Options Options
Number of shares
Number of shares
at the time of exercise
at the time of exercise
call
put Shares
call
put
option option Number option option
Herbert J. Scheidt Chairman 534,368 0 0 n/a n/a n/a
Bruno Basler Vice-Chairman 7,410 0 0 6,418 0 0
Prof. Dr Ann-Kristin Achleitner Member 1,779 0 0 787 0 0
Dr Philippe Cottier Member 108,033 0 0 137,577 0 0
Peter Quadri Member 7,910 0 0 6,918 0 0
Dr Frank Schnewlin Member 1,779 0 0 787 0 0
Clara C. Streit Member 0 0 0 n/a n/a n/a
Dr Pierin Vincenz Member 14,147 0 0 13,155 0 0
Members resigned
Dr Urs Widmer Chairman n/a n/a n/a 171,099 0 0
Dr Wolfhard Graetz Vice-Chairman n/a n/a n/a 4,042 0 0
Members of the Group Executive
Management
Name Function
Shares
Number
31-12-11 31-12-10
Options Options
Number of shares
Number of shares
at the time of exercise
at the time of exercise
call
put Shares
call
put
option option Number option option
Dr Zeno Staub CEO 170,808 0 0 126,351 0 0
Dr Martin Sieg Castagnola CFO 61,142 0 0 42,196 0 0
Peter Fanconi Member 203,072 0 0 109,557 0 0
Felix Lenhard Member 34,185 0 0 15,812 0 0
Axel Schwarzer Member 0 0 0 n/a n/a n/a
Roger Studer Member 138,767 0 0 155,837 0 0
Member resigned
Herbert J. Scheidt CEO n/a n/a n/a 444,611 0 0
The above figures do not include rights to receive performance shares.
The calculation of the number of shares at the time of exercise reflects the exchange ratio of the respective options.
The above figures also include the share and option holdings of parties related to the members of the Vontobel Group's governing bodies.

31 Transactions with related companies and persons
Companies and persons are deemed related if one side is able to control the other or exert a
substantial influence on the other’s financial or operational decisions.
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Receivables 1.1 0.1 1.0
Liabilities 125.9 77.1 48.8 63
Vontobel Foundation and other members of the shareholder pool
The Vontobel Foundation conducts business with Bank Vontobel AG at the same terms and conditions
offered to employees.
32 Other related parties
Pension funds of Vontobel Group
The assets of these pension funds are managed by Bank Vontobel AG. Reduced commission rates
are charged.
Notes to the consolidated financial statements
Transactions with related parties
Vontobel Group, Annual Reports 2011 143

Notes to the consolidated financial statements
Risk related to balance sheet positions
33 Risk related to balance sheet
positions
Subject to Due within
Due within
3 to 12 Due within Due after
Demand notice 3 months months 1 to 5 years 5 years Total
31-12-11 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Liquidity risk
Maturity structure of assets and liabilities
Assets
Cash 2,999.6 2,999.6
Due from banks
Cash collateral for reverse-repurchase
1,460.2 543.4 258.9 154.9 2,417.4
agreements 1,101.0 1,101.0
Trading portfolio assets 1,533.3 1,533.3
Positive replacement values 113.0 113.0
Other financial assets at fair value 7,440.5 7,440.5
Due from customers 35.5 255.9 656.8 203.6 192.3 26.3 1,370.4
Accrued income and prepaid expenses 221.1 221.1
Financial investments 121.6 36.8 351.0 573.0 3.7 1,086.1
Investments in associates1 0.8 0.8
Property and equipment1 198.7 198.7
Goodwill and other intangible assets1 140.6 140.6
Current tax assets 15.5 15.5
Deferred tax assets 8.1 8.1
Other assets 45.7 45.7
Total 13,994.1 799.3 2,053.5 709.5 765.3 370.1 18,691.8
Liabilities
Due to banks 646.0 7.8 653.8
Trading portfolio liabilities 1,044.0 1,044.0
Negative replacement values 752.7 752.7
Other financial liabilities at fair value 6,802.7 6,802.7
Due to customers 6,313.8 1.7 1,166.3 52.1 4.8 7,538.7
Accrued expenses and deferred income 290.9 290.9
Current tax liabilities 12.4 12.4
Deferred tax liabilities 53.7 53.7
Provisions 12.4 12.4
Other liabilities 33.9 33.9
Total liabilities 15,962.5 9.5 1,166.3 52.1 0.0 4.8 17,195.2
Off-balance sheet
Contingent liabilities and irrevocable
commitments 293.6 74.3 31.5 27.4 23.7 6.7 457.2
1 Immobilized
144 Vontobel Group, Annual Reports 2011

Notes to the consolidated financial statements
Risk related to balance sheet positions
Subject to Due within
Due within
3 to 12 Due within Due after
Demand notice 3 months months 1 to 5 years 5 years Total
31-12-10 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Liquidity risk
Maturity structure of assets and liabilities
Assets
Cash 1,457.6 1,457.6
Due from banks
Cash collateral for reverse-repurchase
1,580.3 198.3 287.3 161.9 2,227.8
agreements 300.0 300.0
Trading portfolio assets 2,097.7 2,097.7
Positive replacement values 197.2 197.2
Other financial assets at fair value 8,828.1 8,828.1
Due from customers 19.5 622.6 463.9 203.7 94.8 22.5 1,427.0
Accrued income and prepaid expenses 226.6 226.6
Financial investments 136.9 38.1 143.1 786.0 8.7 1,112.8
Investments in associates1 0.6 0.6
Property and equipment1 204.8 204.8
Goodwill and other intangible assets1 150.7 150.7
Current tax assets 4.4 4.4
Deferred tax assets 6.3 6.3
Other assets 60.0 60.0
Total 14,614.6 820.9 1,089.3 508.7 880.8 387.3 18,301.6
Liabilities
Due to banks 1,459.1 12.3 0.6 1,472.0
Trading portfolio liabilities 1,215.8 1,215.8
Negative replacement values 544.2 544.2
Other financial liabilities at fair value 8,183.0 8,183.0
Due to customers 4,794.4 85.7 40.6 5.0 4,925.7
Accrued expenses and deferred income 325.9 325.9
Current tax liabilities 15.3 15.3
Deferred tax liabilities 56.6 56.6
Provisions 10.4 10.4
Other liabilities 49.2 49.2
Total liabilities 16,653.9 12.3 86.3 40.6 0.0 5.0 16,798.1
Off-balance sheet
Contingent liabilities and irrevocable
commitments 274.0 259.6 14.4 29.0 23.0 12.7 612.7
1 Immobilized
Vontobel Group, Annual Reports 2011 145

Notes to the consolidated financial statements
Risk related to balance sheet positions
34 Fair value of financial instruments
146 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10
Book value Fair Value Deviation Book value Fair Value Deviation
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Assets
Cash 2,999.6 2,999.6 0.0 1,457.6 1,457.6 0.0
Due from banks 2,417.4 2,417.4 0.0 2,227.8 2,227.8 0.0
Cash collateral for reverse-repurchase agreements 1,101.0 1,101.0 0.0 300.0 300.0 0.0
Due from customers 1,370.4 1,380.3 9.9 1,427.0 1,431.0 4.0
Financial assets at amortized costs 7,888.4 7,898.3 9.9 5,412.4 5,416.4 4.0
Trading portfolio assets 1,533.3 1,533.3 0.0 2,097.7 2,097.7 0.0
Positive replacement values 113.0 113.0 0.0 197.2 197.2 0.0
Other financial assets at fair value 7,440.5 7,440.5 0.0 8,828.1 8,828.1 0.0
Financial assets available-for-sale 1,086.1 1,086.1 0.0 1,112.8 1,112.8 0.0
Financial assets at fair value 10,172.9 10,172.9 0.0 12,235.8 12,235.8 0.0
Liabilities
Due to banks 653.8 653.8 0.0 1,472.0 1,472.0 0.0
Due to customers 7,538.7 7,538.0 (0.7) 4,925.7 4,924.5 (1.2)
Financial liabilities at amortized costs 8,192.5 8,191.8 (0.7) 6,397.7 6,396.5 (1.2)
Trading portfolio liabilities 1,044.0 1,044.0 0.0 1,215.8 1,215.8 0.0
Negative replacement values 752.7 752.7 0.0 544.2 544.2 0.0
Other financial liabilities at fair value 6,802.7 6,802.7 0.0 8,183.0 8,183.0 0.0
Financial liabilities at fair value 8,599.4 8,599.4 0.0 9,943.0 9,943.0 0.0
The table shows the fair value of the financial instruments based on the valuation methods and
assumptions explained below. The fair value corresponds to the amount at which assets can be
exchanged or obligations fulfilled by knowledgeable parties willing to contract and acting independently
of one another.
Short-term financial instruments at amortized cost
Included here are accounts due from/to banks, accounts due from/to customers, and debt issued
that have a maturity or a refinancing profile of at most one year as well as the balance sheet items
“cash”, “cash collateral for reverse-repurchase agreements” and “cash collateral for repurchase
agreements”. In the case of short-term financial instruments, it is assumed that the book value is
close enough to the fair value.
Long-term financial instruments at amortized cost
Included here are accounts due from/to banks, accounts due from/to customers, and debt issued
that have a maturity or a refinancing profile of over one year. The fair value is based on listed
market prices or the prices quoted by traders if, in exceptional cases, the long-term financial instrument
is traded in an active market. In all other cases, its fair value is determined using the
present value method.

Trading portfolio assets, other financial instruments at fair value, financial investments
and derivative financial instruments
Level-1-instruments
If a financial instrument is traded in an active market, its fair value is based on listed market
prices or the prices quoted by traders. In the fair value hierarchy prescribed in IFRS 7, this type of
financial instrument is classified as a level 1 instrument. This category essentially comprises almost
all equity instruments and government bonds, liquid debt instruments issued by public sector
entities and companies, exchange-traded derivatives and investment funds, as well as precious
metals.
The fair value of these positions corresponds to the settlement prices for exchange-traded derivatives
or the closing prices for the remaining positions multiplied by the number of units of the
financial instruments held. In the case of foreign currencies and precious metals, generally accepted
prices are applied.
Level-2-instruments
If there is no active market, the fair value is determined on the basis of valuation models or other
generally accepted valuation methods (primarily option pricing and discounted cash flow models).
If all the significant inputs can be observed directly or indirectly in the market, the instrument
is classified as a level 2 instrument. This category essentially comprises unlisted or illiquid debt
instruments issued by public sector entities or companies, unlisted investment funds, OTC derivatives
and all products issued by the Vontobel Group. Most of the latter are listed, with the
Vontobel Group acting as market maker. Since there is no active market pursuant to the definition
of IAS 39 for these instruments, they are treated as level 2 instruments.
The valuation models take account of the relevant parameters such as contract specifications, the
market price of the underlying asset, foreign exchange rates, yield curves, default risks and volatility.
Vontobel’s credit risk is only taken into account when determining the fair value of financial liabilities
if market participants would consider it when calculating prices. OTC derivatives are traded
only on a collateralized basis, which is why own credit risk (as well as third-party credit risk in
the case of receivables) is not included in the valuation.
Counterparty credit risk is taken into account in the case of uncollateralized positions (debt instruments).
Here, credit default swap spreads, returns on securities issued by the same counterparty
or the returns on similar securities are considered – taking account of their term, ranking
and liquidity.
Level-3-instruments
If at least one significant input cannot be observed directly or indirectly in the market, the instrument
is classified as a level 3 instrument. These instruments essentially comprise illiquid fund units
and some equity instruments. The fair value of these positions is generally determined based on
the estimates of external experts regarding the level of future payouts from fund units or corresponds
to the costs of acquiring the equity instruments less any impairment.
Valuation adjustments
Fair value is always an estimate or an approximation of a value that cannot be determined with
absolute certainty. Furthermore, the valuation methods used do not always reflect all of the factors
that are relevant when determining fair value. To ensure that the valuations are appropriate,
additional factors such as uncertainties relating to the models and parameters as well as liquidity
risks and the risk of the early redemption of products issued by the Vontobel Group are considered.
The adjustments due to uncertainties relating to the models and parameters reflect the
uncertainties in the model assumptions and input parameters associated with the valuation methods
used. The adjustments due to liquidity risks take account of the expected costs of hedging
open net risk positions. Management believes it is necessary and appropriate to take these factors
into account in order to correctly determine the fair value.
The appropriateness of the valuation of financial instruments that are not traded in an active
market is ensured through the application of clearly defined methods and processes as well as
independent controls. The control processes comprise the analysis and approval of new instruments,
the regular analysis of risks as well as gains and losses, the verification of prices and the
examination of the models on which the estimates of the fair value of financial instruments are
based. These controls are conducted by units that possess the relevant specialist knowledge and
operate independently from the trading and investment functions.
Notes to the consolidated financial statements
Risk related to balance sheet positions
Vontobel Group, Annual Reports 2011 147

Notes to the consolidated financial statements
Risk related to balance sheet positions
148 Vontobel Group, Annual Reports 2011
Sensitivity of fair values of level 3 instruments
A reasonably realistic change in the basic assumptions or estimated values has no significant impact
on the Vontobel Group’s income statement, statement of comprehensive income or shareholders‘
equity.
Day 1 profit
When a financial instrument is recognized for the first time, the transaction price provides the
best indication of the fair value unless the fair value of this financial instrument can be evidenced
by comparison with other observable current market transactions involving the same instrument
(level 1 instrument) or is based on a valuation method that uses market data (level 2 instrument).
If this is the case, the difference between the transaction price and the fair value – referred to as
“day 1 profit” – is recorded in “Trading income” in the case of trading portfolio assets, other financial
instruments at fair value and derivative financial instruments and is recorded in “Other
comprehensive income” in the case of financial investments.
In the case of level 3 instruments, the day 1 profit is deferred and is not recognized in the income
statement. It is only recorded as “Trading income” or in the “Other comprehensive income”
when the fair value can be determined using observable market data. During the financial year
and the previous year, no positions with deferred day 1 profit were recorded.

Valuation methods of financial instruments
Notes to the consolidated financial statements
Risk related to balance sheet positions
Valuation Valuation
methods methods not
Listed market based on based on 31-12-11
prices market data market data
Total
CHF mns CHF mns CHF mns CHF mns
Assets
Trading portfolio assets 1,474.3 59.0 - 1,533.3
Positive replacement values
Other financial assets at fair value
14.9 98.1 - 113.0
Equity instruments 0.7 - - 0.7
Units in investment funds 19.8 25.5 15.3 60.6
Debt instruments1 Financial assets available-for-sale
5,770.7 1,608.5 - 7,379.2
Money market papers 68.1 - - 68.1
Equity instruments and other participations 102.2 - 0.9 103.1
Units in investment funds 13.7 4.8 - 18.5
Debt instruments 792.6 103.8 - 896.4
Liabilities
Trading portfolio liabilities 209.9 834.1 - 1,044.0
of which listed 652.4
Negative replacement values 50.9 701.8 - 752.7
Other financial liabilities at fair value - 6,802.7 - 6,802.7
of which listed 5,238.3
1 In the case of interest rate instruments measured at fair value through profit and loss, the difference between the book value (fair value) and the contractually
agreed redemption amount at maturity was CHF 120.7 mn.
In the financial year 2011, positions with a fair value of CHF 305.5 mn (previous year CHF 138.3 mn) were reclassified from Level 1 (listed market prices) to Level
2 (valuation methods based on market data), positions with a fair value of CHF 474.2 mn (previous year CHF 828.1 mn) were reclassified from Level 2 to Level 1,
and positions with a fair value of CHF 0.3 mn (previous year CHF 9.3 mn) were reclassified from Level 2 to Level 3 (valuation methods not based on market data).
Vontobel Group, Annual Reports 2011 149

Notes to the consolidated financial statements
Risk related to balance sheet positions
Valuation methods of financial instruments
150 Vontobel Group, Annual Reports 2011
Valuation Valuation
methods methods not
Listed market based on based on 31-12-10
prices market data market data
Total
CHF mns CHF mns CHF mns CHF mns
Assets
Trading portfolio assets 2,015.0 82.7 - 2,097.7
Positive replacement values
Other financial assets at fair value
30.0 167.2 - 197.2
Equity instruments 0.7 - - 0.7
Units in investment funds 23.4 20.9 19.8 64.1
Debt instruments1 Financial assets available-for-sale
5,765.1 2,998.2 - 8,763.3
Money market papers - - - 0.0
Equity instruments and other participations 124.5 - 1.1 125.6
Units in investment funds 12.6 1.0 - 13.6
Debt instruments 769.8 203.8 - 973.6
Liabilities
Trading portfolio liabilities 178.6 1,037.2 - 1,215.8
of which listed 839.5
Negative replacement values 23.7 520.5 - 544.2
Other financial liabilities at fair value - 8,183.0 - 8,183.0
of which listed 6,981.2
1 In the case of interest rate instruments measured at fair value through profit and loss, the difference between the book value (fair value) and the contractually
agreed redemption amount at maturity was CHF 189.0 mn.

35 Level 3 instruments
Notes to the consolidated financial statements
Risk related to balance sheet positions
31-12-11 31-12-10
CHF mns CHF mns
Balance sheet
Holdings at the beginning of the year 20.9 17.8
Investments 1.4 1.6
Disposals 0.0 (0.1)
Issues 0.0 0.0
Redemptions (5.1) 0.0
Losses recognized in the income statement (1.7) (8.0)
Losses recognized as other comprehensive income (0.2) (0.1)
Gains recognized in the income statement 0.6 0.2
Gains recognized as other comprehensive income 0.0 0.2
Reclassifications to level 3 0.3 9.3
Reclassifications from level 3 0.0 0.0
Translation differences 0.0 0.0
Total book value at balance sheet date 16.2 20.9
Income on holdings on balance sheet date
Unrealized losses recognized in the income statement (8.3) (15.8)
Unrealized losses recognized as other comprehensive income 0.0 (0.5)
Unrealized gains recognized in the income statement 0.3 0.3
Unrealized gains recognized as other comprehensive income 0.0 0.2
No deferred day 1 profit or loss (difference between the transaction price and the fair value calculated on the transaction date) was reported for level 3 positions
as of 31-12-11 or 31-12-10.
Of the gains and losses recorded in the income statement, CHF –1.1 mn (2010: CHF –7.8 mn) were included in trading income and CHF 0.0 mn (CHF 0.0 mn.) in
other income.
Vontobel Group, Annual Reports 2011 151

36 Off-balance sheet information
Notes to the consolidated financial statements
Off-balance sheet and other information
31-12-11 31-12-10 Change to 31-12-10
Notes CHF mns CHF mns CHF mns in %
Contingent liabilities
Credit guarantees 173.9 193.4 (19.5) (10)
Performance guarantees 3.5 5.8 (2.3) (40)
Other contingent liabilities 247.3 398.6 (151.3) (38)
Total 424.7 597.8 (173.1) (29)
Irrevocable commitments
Undrawn irrevocable credit facilities 32.5 14.9 17.6 118
of which payment obligation to “Einlagensicherung” 1 14.4 12.7 1.7 13
1 Deposit protection of Swiss Banks' and Securities Dealers' Depositor Protection Association
Of the aggregate sum of CHF 457.2 mn (previous year CHF 612.7 mn) comprising contingent liabilities and irrevocable commitments, a total of CHF 342.5 mn
(CHF 467.8 mn) are secured by recognized collateral and CHF 114.7 mn (CHF 144.9 mn) are unsecured. These positions contain maximum credit risks of CHF
195.0 mn (CHF 200.7 mn), of which CHF 195.0 mn (CHF 200.7 mn) is secured.
Fiduciary transactions
Other fiduciary placements 1,464.0 1,588.7 (124.7) (8)
Fiduciary credits 1.3 6.7 (5.4) (81)
Other fiduciary financial transactions 0.0 0.0 0.0
Total 1,465.3 1,595.4 (130.1) (8)
Derivative financial instruments 42, 43
Positive replacement values 113.0 197.2 (84.2) (43)
Negative replacement values 752.7 544.2 208.5 38
Contract volumes 15,862.4 18,898.7 (3,036.3) (16)
Litigation
At the end of August 2011, the legal dispute between Private Equity Holding AG and Bank Vontobel
AG was finally resolved when the lawsuit was withdrawn following a court settlement.
In connection with the fraud committed by Bernard Madoff, the liquidators of investment vehicles
that invested directly or indirectly in Madoff funds have filed lawsuits with various courts
against more than 100 banks and custodians. The litigation is targeted at investors who redeemed
their investments in these vehicles between 2004 and 2008. The liquidators are demanding that
the investors repay the sums involved because he considers them to have been obtained unjustly
as a result of the redemptions. Since the liquidators often only know the names of the investors’
custodian banks, they have filed the lawsuits against them. Several legal entities of the Vontobel
Group are or may be affected by the litigation in their capacity as a bank or custodian. The claims
filed against the Vontobel Group concern the redemption of investments worth around USD 11.7
mn. However, based on the information currently available to it, the Vontobel Group believes the
probability of a lawsuit resulting in an outflow of funds is low.
Vontobel Group, Annual Reports 2011 153

Notes to the consolidated financial statements
Off-balance sheet and other information
37 Client assets
154 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF bns CHF bns CHF bns in %
Assets under management 82.2 78.6 3.6 5
Custody assets 41.7 40.4 1.3 3
Structured products outstanding 7.7 9.3 (1.6) (17)
Total client assets 131.6 128.3 3.3 3
38 Assets under management 1
Client assets
Client assets is a broader term than assets under management and comprises all bankable assets
that are managed by or deposited with the Vontobel Group, including assets that are held solely
for transaction or custody purposes and for which further services are provided (custody assets),
as well as investment products offered by Financial Products to give private and institutional clients
access to all asset classes and markets.
31-12-11 31-12-10 Change to 31-12-10
CHF bns CHF bns CHF bns in %
Assets in self-managed collective investment instruments 18.6 20.4 (1.8) (9)
Assets with management mandate 33.0 27.2 5.8 21
Other assets under management 30.6 31.0 (0.4) (1)
Total assets under management (including double counts) 82.2 78.6 3.6 5
of which double counts 3.1 3.6 (0.5) (14)
1 Calculation in accordance with Table Q of the guidelines issued by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions and Vontobel Group internal guidelines
39 Net new money
31-12-11 31-12-10
CHF bns CHF bns
Net new money 8.2 5.5
Assets under management and net inflows/outflows of new money
Assets under management are calculated and reported in accordance with the guidelines issued
by the Swiss Financial Market Supervisory Authority (FINMA) concerning accounting standards
for financial institutions. Assets under management comprise all of the assets managed or held
for investment purposes of private, corporate and institutional clients excluding borrowings, as
well as assets in self-managed collective investment instruments. This includes all amounts due to
customers on savings and deposit accounts, fixed-term and fiduciary deposits, and all valued assets.
Assets under management that are deposited with third parties are included to the extent
that they are managed by a Group company. Assets under management only include those assets
on which the Vontobel Group generates considerably higher income than on assets that are held
solely for custody purposes or the execution of transactions. These types of custody assets are
reported separately. Assets that are counted more than once, i. e. in several categories of assets
under management to be disclosed, are shown under double counts. They primarily include
shares in self-managed collective investment instruments in client portfolios.
Net inflows or outflows of assets under management in the course of a specific period consist of
the acquisition of new clients, the departure of clients as well as inflows and outflows of assets
from existing clients. This also includes borrowing and the repayment of loans. The calculation of
the net inflow or outflow of new money is performed at the level “total assets under management”
(excl. double counts). If there is a change in the service provided, resulting in the reclassification
of assets under management as assets held for custody purposes or vice versa, this is
recorded as an outflow of new money or an inflow of new money, respectively. Securities and
currency-related changes in market value, interest income and dividends, fee charges as well as
loan interests paid do not represent inflows or outflows.

40 Future liabilities for finance lease, operating lease and the
acquisition of fixed assets and intangible assets
Notes to the consolidated financial statements
Off-balance sheet and other information
Operating 31-12-11 31-12-10
Finance Lease
Lease
Total Total
CHF mns CHF mns CHF mns CHF mns
Due within 1 year 1.2 34.3 35.5 24.2
Due within 1 to 2 years 0.7 30.1 30.8 22.9
Due within 2 to 3 years - 26.6 26.6 21.5
Due within 3 to 4 years - 22.9 22.9 19.5
Due within 4 to 5 years - 22.0 22.0 15.6
Due in more than 5 years - 70.4 70.4 23.9
Total minimum obligation 1.9 206.3 208.2 127.6
In the year under review, general expense include CHF 25.0 mn (previous year CHF 26.4 mn)
from operating lease. The future liabilities from operating leases mainly comprise lease agreements
for premises occupied by the Vontobel Group.
The future income from minimum lease payments from non-terminable subtenancies amounted
to CHF 0.0 mn in 2011 (previous year CHF 0.0 mn).
41 Cooperation agreement between Vontobel Group and Raiffeisen
Switzerland
The ongoing cooperation between Vontobel Group and Raiffeisen Switzerland (former Swiss
Raiffeisen Group) initiated in 1994 was broadened in 2004 and extended through to 30 June
2017 at 14 December 2009. In connection with the expansion of its investment management
business, the Raiffeisen Group cooperates with Vontobel Group and offers Vontobel’s investment-related
services and selected third-party products at all of its banking locations in Switzerland.
Vontobel develops and designs product and service solutions for Raiffeisen’s investment
customers in the fields of investment funds, standardized asset management solutions and structured
products. Raiffeisen banks continue to undertake the marketing and client advisory activities
as before. Vontobel advises and supports Raiffeisen’s marketing organization. In addition, the
Raiffeisen Group outsourced its securities trading and settlement as well as safekeeping activities
to Vontobel in 2005. Additionally, Vontobel has made its trading infrastructure available to the
central bank of the Raiffeisen Group. In October 2006, Vontobel Group as service provider assumed
the custodian services for all Raiffeisen clients on behalf of the Raiffeisen Group.
To underpin the long-term nature of their partnership, Raiffeisen Group acquired a 12.5% stake
in Vontobel Holding AG effective as of 8 December 2004 (refer to the information given in the
Corporate Governance, page 45f.). The requisite agreements implementing the mutual cooperation
in the investment management and securities transactions and administration business
were signed at the same time. The cooperation agreements took effect retroactively to 1 July
2004 and were prolonged at 14 December 2009 for an indefinite period, at minimum, however,
until 30 June 2017. The earliest effective date of ordinary termination – in observance of a period
of notice of 24 months – is 30 June 2017.
Vontobel Group, Annual Reports 2011 155

Notes to the consolidated financial statements
Off-balance sheet and other information
42 Open derivative instruments
Term to maturity Term to maturity Term to maturity Term to maturity
Total
up to 3 months 3 to 12 months
1 to 5 years more than 5 years Total Total contract
PRV1 NRV2 PRV NRV PRV NRV PRV NRV PRV NRV volume
31-12-11 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Debt instruments
Forward contracts incl. FRAs – –
Swaps 0.6 0.2 7.1 1.7 10.8 94.6 3.7 50.6 22.2 147.1 5,236.1
Futures 0.0 0.0 172.8
Options (OTC) 0.3 0.3 1.8 0.3 2.1 11.8
Options (exchange traded) – –
Total 0.6 0.2 7.1 1.7 11.1 94.9 3.7 52.4 22.5 149.2 5,420.7
Foreign currency
Forward contracts 12.0 10.2 5.0 4.7 0.3 0.3 17.3 15.2 874.1
Swaps 16.6 13.2 2.7 3.1 0.2 0.0 19.5 16.3 2,221.5
Futures – –
Options (OTC) 1.0 1.4 2.3 2.3 1.3 0.1 3.3 4.6 7.1 466.5
Options (exchange traded) – –
Total 29.6 24.8 10.0 10.1 1.8 0.4 – 3.3 41.4 38.6 3,562.1
Precious metals
Forward contracts 0.1 0.1 0.1 0.1 0.0 0.0 0.2 0.2 8.0
Swaps 0.4 0.2 0.4 0.2 9.2
Futures 0.0 0.0 79.3
Options (OTC) 0.1 0.8 6.0 5.1 0.8 5.5 0.2 11.8 7.1 23.2 1,565.1
Options (exchange traded) 0.7 0.9 0.7 0.9 57.5
Total 1.3 1.1 6.1 6.1 0.8 5.5 0.2 11.8 8.4 24.5 1,719.1
Equities/indices
Forward contracts – –
Swaps 0.0 3.5 1.3 6.9 1.6 32.0 0.2 1.5 3.1 43.9 319.8
Futures 0.0 0.0 30.0
Options (OTC) 2.6 138.6 2.0 159.4 14.5 89.8 0.0 31.7 19.1 419.5 3,562.4
Options (exchange traded) 4.7 12.7 8.0 35.8 1.5 1.5 14.2 50.0 639.7
Total 7.3 154.8 11.3 202.1 17.6 123.3 0.2 33.2 36.4 513.4 4,551.9
Credit derivatives
Credit default swaps 0.6 0.4 0.3 20.6 0.9 21.0 504.5
Total – – 0.6 0.4 0.3 20.6 – – 0.9 21.0 504.5
Other
Forward contracts - -
Futures 0.0 0.0 0.2
Options (OTC) 4.2 1.1 1.0 2.3 0.0 0.8 3.4 6.0 103.9
Options (exchange traded) - -
Total – 4.2 1.1 1.0 2.3 0.0 – 0.8 3.4 6.0 104.1
Total 38.8 185.1 36.2 221.4 33.9 244.7 4.1 101.5 113.0 752.7 15,862.4
1 Positive replacement values
2 Negative replacement values
156 Vontobel Group, Annual Reports 2011

Notes to the consolidated financial statements
Off-balance sheet and other information
Term to maturity Term to maturity Term to maturity Term to maturity
Total
up to 3 months 3 to 12 months
1 to 5 years more than 5 years Total Total contract
PRV1 NRV2 PRV NRV PRV NRV PRV NRV PRV NRV volume
31-12-10 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Debt instruments
Forward contracts incl. FRAs 0.0 0.0 0.0 0.0 3.1
Swaps 0.1 0.7 4.2 6.0 38.3 60.6 3.2 27.2 45.8 94.5 5,282.0
Futures 0.0 0.0 201.5
Options (OTC) 0.2 0.0 0.0 0.1 0.4 0.1 0.6 10.0
Options (exchange traded) – –
Total 0.1 0.9 4.2 6.0 38.3 60.6 3.3 27.6 45.9 95.1 5,496.6
Foreign currency
Forward contracts 21.4 27.6 5.6 8.1 0.2 0.1 0.0 27.2 35.8 1,114.8
Swaps 37.7 22.1 5.0 3.8 0.1 0.0 42.8 25.9 1,137.8
Futures 0.0 0.0 3.8
Options (OTC) 1.0 1.9 1.3 3.5 0.2 0.5 3.5 2.5 9.4 986.7
Options (exchange traded) – –
Total 60.1 51.6 11.9 15.4 0.5 0.6 0.0 3.5 72.5 71.1 3,243.1
Precious metals
Forward contracts 0.0 0.0 0.0 0.0 0.4
Swaps – –
Futures 0.0 0.0 173.8
Options (OTC) 2.5 22.0 1.8 26.5 0.0 0.3 9.3 4.3 58.1 402.1
Options (exchange traded) – –
Total 2.5 22.0 1.8 26.5 0.0 0.3 – 9.3 4.3 58.1 576.3
Equities/indices
Forward contracts – –
Swaps 0.4 4.5 0.2 1.8 8.5 1.1 7.8 8.7 270.1
Futures 0.0 0.0 580.7
Options (OTC) 0.5 60.8 4.5 122.8 24.2 51.3 0.1 41.2 29.3 276.1 7,361.3
Options (exchange traded) 10.8 7.7 16.3 15.3 2.9 0.7 30.0 23.7 1,175.6
Total 11.7 68.5 25.3 138.3 28.9 60.5 1.2 41.2 67.1 308.5 9,387.7
Credit derivatives
Credit default swaps 0.0 0.3 2.3 0.3 2.3 96.4
Total – – – 0.0 0.3 2.3 – – 0.3 2.3 96.4
Other
Forward contracts – –
Futures 0.0 0.0 18.2
Options (OTC) 0.3 6.6 6.4 0.5 2.4 7.1 9.1 80.4
Options (exchange traded) – –
Total – 0.3 6.6 6.4 0.5 – – 2.4 7.1 9.1 98.6
Total 74.4 143.3 49.8 192.6 68.5 124.3 4.5 84.0 197.2 544.2 18,898.7
1 Positive replacement values
2 Negative replacement values
Vontobel Group, Annual Reports 2011 157

Notes to the consolidated financial statements
Off-balance sheet and other information
43 Open derivative instruments
Trading instruments Hedging instruments
PRV1 NRV2 contract
contract
volume PRV NRV volume
31-12-11 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Debt instruments
Forward contracts incl. FRAs
Swaps 22.2 147.1 5,236.1
Futures 172.8
Options (OTC)
Options (exchange traded)
0.3 2.1 11.8
Total 22.5 149.2 5,420.7 – – –
Foreign currency
Forward contracts 17.3 15.2 874.1
Swaps
Futures
19.5 16.3 2,221.5
Options (OTC)
Options (exchange traded)
4.6 7.1 466.5
Total 41.4 38.6 3,562.1 – – –
Precious metals
Forward contracts 0.2 0.2 8.0
Swaps 0.4 0.2 9.2
Futures 79.3
Options (OTC) 7.1 23.2 1,565.1
Options (exchange traded) 0.7 0.9 57.5
Total 8.4 24.5 1,719.1 – – –
Equities/indices
Forward contracts
Swaps 3.1 43.9 319.8
Futures 30.0
Options (OTC) 19.1 419.5 3,562.4
Options (exchange traded) 14.2 50.0 639.7
Total 36.4 513.4 4,551.9 – – –
Credit derivatives
Credit default swaps 0.9 21.0 504.5
Total 0.9 21.0 504.5 – – –
Other
Forward contracts
Futures 0.2
Options (OTC)
Options (exchange traded)
3.4 6.0 103.9
Total 3.4 6.0 104.1 – – –
Total 113.0 752.7 15,862.4 0.0 0.0 0.0
1 Positive replacement values
2 Negative replacement values
158 Vontobel Group, Annual Reports 2011

Notes to the consolidated financial statements
Off-balance sheet and other information
Trading instruments Hedging instruments
PRV1 NRV2 contract
contract
volume PRV NRV volume
31-12-10 CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Debt instruments
Forward contracts incl. FRAs 0.0 0.0 3.1
Swaps 45.8 94.5 5,282.0
Futures 201.5
Options (OTC)
Options (exchange traded)
0.1 0.6 10.0
Total 45.9 95.1 5,496.6 – – –
Foreign currency
Forward contracts 27.2 35.8 1,114.8
Swaps 42.8 25.9 1,137.8
Futures 3.8
Options (OTC)
Options (exchange traded)
2.5 9.4 986.7
Total 72.5 71.1 3,243.1 – – –
Precious metals
Forward contracts
Swaps
0.0 0.0 0.4
Futures 173.8
Options (OTC)
Options (exchange traded)
4.3 58.1 402.1
Total 4.3 58.1 576.3 – – –
Equities/indices
Forward contracts
Swaps 7.8 8.7 270.1
Futures 580.7
Options (OTC) 29.3 276.1 7,361.3
Options (exchange traded) 30.0 23.7 1,175.6
Total 67.1 308.5 9,387.7 – – –
Credit derivatives
Credit default swaps 0.3 2.3 96.4
Total 0.3 2.3 96.4 – – –
Other
Forward contracts
Futures 18.2
Options (OTC)
Options (exchange traded)
7.1 9.1 80.4
Total 7.1 9.1 98.6 – – –
Total 197.2 544.2 18,898.7 0.0 0.0 0.0
1 Positive replacement values
2 Negative replacement values
Vontobel Group, Annual Reports 2011 159

Notes to the consolidated financial statements
Off-balance sheet and other information
160 Vontobel Group, Annual Reports 2011
44 Employee benefit plans
There are pension plans for the majority of employees at Vontobel Group. These can be either
defined contribution or defined benefit plans. Actuarial calculations of defined benefit plans are
conducted by independent experts.
The majority of Vontobel Group employees participates in the pension plans in Switzerland. The
pension obligations are met through the pension assets of pension funds that are legally separate
and independent from the Vontobel Group. These pension funds are managed by a Board of
Trustees consisting of employee and employer representatives. The pension plan is organized,
managed and funded in accordance with legislation, the foundation charters and the applicable
pension regulations. Employees and pensioners or their survivors receive their statutory benefits
when they leave the company or retire as well as in the event of death or disability. These benefits
are funded through employer and employee contributions. Under IAS 19, Swiss pension plans are
regarded as defined benefit plans due to their mandatory minimum rate of return, minimum
conversion rate and the additional liability to pay benefits in connection with the restructuring of
plans. The last actuarial calculation for these pension plans was conducted as of 1 May 2011.
Foreign pension plans exist in Liechtenstein, Great Britain, Italy, Hong Kong, Luxemburg, Spain,
Dubai, and the US. They are all defined contribution plans. There are individual pension commitments
in Germany and Austria, for which a provision was expensed accordingly.
Actuarial data for the defined
benefit pension plans 1
31-12-11 31-12-10
CHF mns CHF mns
Present value of pension obligations at 1 January (614.1) (574.3)
Current service cost (26.9) (23.9)
Interest cost (17.0) (19.9)
Employee contributions (11.5) (11.3)
Benefits paid/(deposited) 4.3 43.4
Past service cost 0.0 (1.2)
Business combination 0.0 0.0
Curtailments and settlements 0.0 0.0
Actuarial gains/(losses) on obligations 22.9 (26.9)
Present value of pension obligations at 31 December (642.3) (614.1)
Plan assets at fair value at 1 January 575.2 570.8
Expected return on plan assets 23.7 22.6
Contributions by the employer 22.5 19.7
Employee contributions 11.5 11.3
Benefits (paid)/deposited (4.3) (43.4)
Business combination 0.0 0.0
Actuarial gains/(losses) on plan assets (28.6) (5.8)
Plan assets at fair value at 31 December 600.0 575.2
1 Pension obligations and costs are presented as negative amounts.

Notes to the consolidated financial statements
Off-balance sheet and other information
31-12-11 31-12-10 31-12-09 31-12-08 31-12-07
CHF mns CHF mns CHF mns CHF mns CHF mns
Plan assets at fair value 600.0 575.2 570.8 479.1 516.3
Present value of pension obligations (642.3) (614.1) (574.3) (521.2) (480.8)
Funding surplus/(gap) (42.3) (38.9) (3.5) (42.1) 35.5
Unrecognized actuarial (gains)/losses 69.0 64.2 31.7 82.2 6.6
Uncapitalizable surpluses 0.0 0.0 0.0 0.0 (2.7)
Prepaid/(deferred) pension cost 26.7 25.3 28.2 40.1 39.4
Experience gains/(losses) on plan assets (28.6) (5.8) 25.8 (64.5) 1.0
Experience (gains)/losses on pension obligations (30.6) (14.8) (14.5) 16.6 21.9
First-time application of IFRIC 14 – IAS 19 in 2008. The figures for 2007 have been adjusted accordingly.
31-12-11 31-12-10
CHF mns CHF mns
Current service cost (38.4) (35.2)
Interest cost (17.0) (19.9)
Expected return on plan assets 23.7 22.6
Recognition of actuarial gains/(losses) (0.9) (0.2)
Past service cost 0.0 (1.2)
Effects of curtailments and settlements 0.0 0.0
Employee contributions 11.5 11.3
Pension cost for defined benefit plans (21.1) (22.6)
Pension cost for defined contribution plans (3.8) (3.9)
Total pension cost recognized in personnel expense (24.9) (26.5)
Effective return on plan assets (4.9) 16.8
Prepaid/(deferred) pension cost as of 1 January 25.3 28.2
Pension cost for defined benefit plans (21.1) (22.6)
Contributions by the employer 22.5 19.7
Business combination 0.0 0.0
Prepaid/(deferred) pension cost as of 31 December 26.7 25.3
of which reported in Other assets 29.8 29.3
of which reported in Other liabilities (3.1) (4.0)
Vontobel Group, Annual Reports 2011 161

Notes to the consolidated financial statements
Off-balance sheet and other information
162 Vontobel Group, Annual Reports 2011
Actuarial assumptions (Swiss pension plans) 1
31-12-11 31-12-10
in % in %
Discount rate 2.4 2.7
Expected return on plan assets 4.0 4.0
Expected rate of salary increases 2.0 2.0
Expected rate of pension increases 0.0 0.0
Anticipated contributions to pension funds in the following year
(defined benefit plans) in CHF mns 17.3 20.5
1 The expected return on the assets is based on the targeted allocation of plan assets and takes account
of both the long-term historical performance of the individual asset classes and assessments of future
market performance.
In the year under review, demographic assumptions (e.g. probability of death, disability or termination) are
based on the technical principles set out in the Swiss Federal Law on Occupational Retirement, Survivors’
and Disability Pension Plans (BVG) 2010 (cohort life tables), which draw on observations of large insurance
portfolios in Switzerland over a period of several years. In the previous year, the technical principles set out
in the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) 2005
(period tables) were used.
Composition of plan assets
31-12-11 31-12-10
CHF mns CHF mns
Equity instruments 175.2 183.2
Debt instruments 301.3 312.0
Real estate 29.4 27.0
Others 94.1 53.0
Total plan assets at fair value 600.0 575.2
of which registered shares of Vontobel Holding AG 0.0 0.0
of which debt instruments of the Vontobel Group 0.0 0.0
of which credit balances with Vontobel companies 36.3 23.2
of which securities lent to the Vontobel Group 0.0 0.0
Plan-specific sensitivities
The following overview illustrates the impacts of each isolated change in major actuarial assumptions
on the present value of the pension liabilities as of 31 December 2011 or the anticipated
service costs of defined benefit plans in the following year.
Increase in the present value
of the pension liability as of
31-12-11
CHF mns in %
Discount rate (reduction of 25 basis points) 17.2 2.7
Expected rate of salary increases (increase of 50 basis points) 9.0 1.4
Increase in the expected
service costs in the following
year
CHF mns in %
Discount rate (reduction of 25 basis points) 1.0 4.2
Expected rate of salary increases (increase of 50 basis points) 0.3 1.4
If the expected return was reduced by 50 basis points, the expected pension cost in the following year
would increase by CHF 3.0 mn or 18.4%.

45 Other employee benefits payable in the long term
Other employee benefits payable in the long term exist in the form of long service awards and
sabbatical leaves. Analogously to the defined benefit pension plans, actuarial calculations have
been performed and an accrued expense recognized for these benefits.
31-12-11 31-12-10
Mio. CHF Mio. CHF
Accrued expense for long service awards and sabbatical leaves 0.9 1.0
46 Significant foreign currency rates
For the significant currencies, the following rates were used:
year end rates average rates
31-12-11 31-12-10 2011 2010
1 EUR 1.21390 1.25045 1.23248 1.37761
1 USD 0.93510 0.93210 0.88449 1.03649
47 Events after the balance sheet date
No events have occurred since the balance sheet date that affect the relevance of the information
provided in the year 2011 financial statements and would therefore need to be disclosed.
48 Dividend payment
The Board of Directors will propose the distribution of a dividend from retained earnings of CHF
0.37 and a dividend from reserves from capital contributions following conversion into free reserves
of CHF 0.73 per registered share with a par value of CHF 1.00. This corresponds to a total
payment of CHF 70.9 mn.
1 Shares entitled to a dividend as of 31-12-11
49 Authorization of the consolidated accounts
The Board of Directors discussed and approved the present annual report during the board meeting
on 9 February 2012. It will be submitted for approval at the General Meeting on 24 April
2012.
Notes to the consolidated financial statements
Off-balance sheet and other information
Vontobel Group, Annual Reports 2011 163

50 Segment reporting principles
External segment reporting reflects the organizational structure of the Vontobel Group as well as
internal management reporting, which forms the basis for the assessment of the financial performance
of the segments and the allocation of resources to the segments.
The segments correspond to the business units, which comprise the following activities:
Private Banking
Private Banking encompasses portfolio management services for private clients, investment advisory,
custodian services, integrated financial services relating to legal, inheritance and tax matters,
pension advice and wealth consolidation services.
Investment Banking
Investment Banking focuses on the derivatives and structured products business, securities and
foreign exchange trading, institutional sales and research, corporate finance, services for external
asset managers and transaction banking.
Asset Management
Asset Management specializes in active asset management based on asset allocation, stock selection
and multi-manager approaches. Its products are distributed through wholesale channels and
directly to institutional clients. They are also sold by Vontobel’s cooperation partners. Vontobel
supplies Raiffeisen Switzerland with comprehensive investment services as part of their long-term
cooperation.
Corporate Center
The Corporate Center of the Vontobel Group comprises the support units Operations, Finance &
Risk and Group Services, which supply core services to the business units.
Income, expenses, assets and liabilities are allocated to the business units on the basis of client
responsibility or according to the principle of origination. Items that cannot be allocated directly
to the business units are reported in the Corporate Center accounts. The Corporate Center also
includes consolidating entries.
The costs of the services supplied internally are reported in the item “Services from/to other
segment(s)” as a reduction in costs for the service provider and as an increase in costs for the
recipient. This cost allocation is based on agreements that are renegotiated periodically according
to the same principle as if they were concluded between independent third parties (“at arm’s
length”).
Notes to the consolidated financial statements
Segment reporting
Vontobel Group, Annual Reports 2011 165

Notes to the consolidated financial statements
Segment reporting
Business segment reporting
31-12-11
166 Vontobel Group, Annual Reports 2011
Private Investment
Asset Corporate
Banking Banking Management Center Total Group
CHF mns CHF mns CHF mns CHF mns CHF mns
Net interest income 27.3 11.6 0.7 20.6 60.2
Other operating income 209.1 274.0 201.4 21.01 706.5
Operating income 236.4 285.6 202.1 41.6 765.7
Personnel expense 90.0 93.5 94.4 95.2 373.1
General expense 19.2 44.0 23.6 92.1 178.9
Services from/to other segment(s) 86.5 50.6 39.9 (177.0) 0.0
Depreciation of property, equipment and intangible assets 2.8 2.1 6.7 48.6 60.2
Value adjustments, provisions and losses 4.9 0.3 0.8 0.6 6.6
Operating expense 203.4 190.5 165.4 59.5 618.8
Segment profit before taxes 33.0 95.1 36.7 (17.9) 146.9
Taxes 33.1
Net profit 113.8
of which minority interests 0.1
Additional information
Segment assets 1,275.5 9,324.7 163.3 7,928.3 18,691.8
Segment liabilities 5,133.8 10,740.2 405.8 915.4 17,195.2
Allocated equity according to BIS2 131.5 333.0 100.8 98.8 664.1
Client assets (CHF bns) 28.5 57.3 47.2 (1.4) 131.6
Net new money (CHF bns) 1.4 0.4 6.3 0.1 8.2
Capital expenditure 0.0 0.1 0.7 54.5 55.3
Employees (full-time equivalents) 398.4 334.8 280.5 399.7 1,413.4
1 The ”other operating income“ reported by the Corporate Center comprises a gain of CHF 21.6 mn on the sale of a commercial property in Geneva.
2 The allocation of the regulatory capital required in accordance with BIS standards to the individual segments is based on the principle of origination. With
regard to capital requirements for credit risks related to balance sheet assets, allocation is based on guidelines analogous to those used for reporting segmental
assets. The prescribed deduction of CHF 140.7 mn from core capital for intangible assets has been included in the figures above of the segments Private
Banking and Asset Management. The valuation adjustments of own liabilities are assigned to the Investment Banking segment. The deduction of CHF 50.8
mn from core capital for Treasury shares is not included in the figures above.
Information on regions 1
31-12-11
Europe excl.
Other
Switzerland Switzerland Americas Countries2 Consolidation
Total Group
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Operating income related to external customers 474.4 134.1 52.8 104.4 765.7
Assets 11,306.4 1,083.9 52.6 8,676.6 (2,427.7) 18,691.8
Property, equipment and intangible assets 323.2 13.1 1.3 1.8 339.4
Capital expenditure 53.9 1.2 0.2 0.0 55.3
1 Reporting is based on operating locations.
2 Mainly U.A.E.

Business segment reporting
31-12-10
Notes to the consolidated financial statements
Segment reporting
Private Investment
Asset Corporate
Banking Banking Management Center Total Group
CHF mns CHF mns CHF mns CHF mns CHF mns
Net interest income 26.6 10.8 0.5 15.2 53.1
Other operating income 221.9 320.9 213.8 20.5 777.1
Operating income 248.5 331.7 214.3 35.7 830.2
Personnel expense 90.1 103.6 96.2 102.4 392.3
General expense 20.3 48.0 22.9 105.0 196.2
Services from/to other segment(s) 78.7 61.4 37.6 (177.7) 0.0
Depreciation of property, equipment and intangible assets 2.8 2.6 8.4 48.0 61.8
Value adjustments, provisions and losses 8.1 0.6 (1.4) (0.5) 6.8
Operating expense 200.0 216.2 163.7 77.2 657.1
Segment profit before taxes 48.5 115.5 50.6 (41.5) 173.1
Taxes 25.8
Net profit 147.3
of which minority interests (0.5)
Additional information
Segment assets 939.7 12,176.9 162.3 5,022.7 18,301.6
Segment liabilities 3,976.9 10,757.7 290.0 1,773.5 16,798.1
Allocated equity according to BIS1 142.3 264.0 109.3 109.5 625.1
Client assets (CHF bns) 29.6 57.9 42.5 (1.7) 128.3
Net new money (CHF bns) 1.2 0.6 3.7 0.0 5.5
Capital expenditure 0.6 0.9 0.8 38.7 41.0
Employees (full-time equivalents) 347.7 341.6 281.0 375.8 1,346.1
1 The allocation of the regulatory capital required in accordance with BIS standards to the individual segments is based on the principle of origination. With
regard to capital requirements for credit risks related to balance sheet assets, allocation is based on guidelines analogous to those used for reporting segmental
assets. The prescribed deduction of CHF 150.7 mn from core capital for intangible assets has been included in the figures above of the segments Private
Banking, Investment Banking and Asset Management. The valuation adjustments of own liabilities are assigned to the Investment Banking segment. The
deduction of CHF 54.2 mn from core capital for Treasury shares is not included in the figures above.
Information on regions 1
31-12-10
Europe excl.
Other
Switzerland Switzerland Americas Countries2 Consolidation
Total Group
CHF mns CHF mns CHF mns CHF mns CHF mns CHF mns
Operating income related to external customers 517.2 148.6 35.6 128.8 830.2
Assets 9,634.3 983.6 35.2 9,641.4 (1,992.9) 18,301.6
Property, equipment and intangible assets 338.4 13.6 1.5 2.0 355.5
Capital expenditure 38.5 2.3 0.1 0.1 41.0
1 Reporting is based on operating locations.
2 Mainly U.A.E.
Vontobel Group, Annual Reports 2011 167

Notes to the consolidated financial statements
Major subsidiaries and participations
Fully consolidated companies
168 Vontobel Group, Annual Reports 2011
Paid-up
share
capital
Share of
votes
and capital
Registered office Business activity Currency mns in %
Vontobel Holding AG Zurich Holding CHF 65.0 Parent company
Bank Vontobel AG Zurich Bank CHF 149.0 100
Bank Vontobel Cayman Grand Cayman Bank CHF 2.0 100
Bank Vontobel Österreich AG Salzburg/Vienna Bank EUR 9.6 100
Bank Vontobel Europe AG Munich/Frankfurt/
Hamburg/Cologne
Bank EUR 40.5 100
Bank Vontobel (Liechtenstein) AG Vaduz Bank CHF 20.0 100
Bank Vontobel (Middle East) Ltd. Dubai Wealth management USD 2.0 100
Vontobel Asset Management, Inc. New York Portfolio management USD 6.5 100
Vontobel Beteiligungen AG Zurich Holding CHF 10.0 100
Vontobel Fonds Services AG Zurich Fund management CHF 4.0 100
Vontobel Management S.A. Luxemburg Fund management EUR 1.5 100
Vontobel Europe S.A. Luxemburg/London/
Madrid/Milan/Vienna
Portfolio management EUR 2.2 100
Vontobel Swiss Wealth Advisors AG Zurich Wealth management CHF 0.5 100
Vontobel Securities AG Zurich/New York Brokerage CHF 2.0 100
Vontobel Financial Products GmbH Frankfurt Issues EUR 0.05 100
Vontobel Financial Products Ltd. Dubai Issues USD 2.0 100
Vontobel Invest Ltd. Dubai Investments CHF 1.2 100
Vontobel Asia Pacific Ltd. Hong Kong Financial Advisor HKD 7.0 100
VTT-Management Trust reg. Vaduz Director services CHF 0.03 100
VT Investment (Zürich) AG Zurich Holding CHF 0.1 100
Harcourt Investment Consulting AG Zurich Alternative investments CHF 3.0 100
Harcourt Services AG Zurich Financial Services CHF 0.25 100
Harcourt Investment Consulting AB Stockholm Alternative investments SEK 0.25 100
Harcourt Alternative Investmtents (US) LLC Wilmington/New York Alternative investments USD 0.05 100
Alternative Investment Management Ltd. Bridgetown Alternative investments USD 0.006 100
Alternative Investment Solutions Ltd. Grand Cayman Alternative investments USD 0.005 100
Harcourt Alternative Investments
(HK) Ltd.
Hong Kong Alternative investments HKD 0.950 100
The share of voting rights held corresponds to the equity interest held.
Only the shares of Vontobel Holding AG are listed on the Swiss Exchange (SIX). Please see pages 2 and 188 for more detailed information.
Associated companies
Vontobel Treuhand AG Vaduz Fiduciary company CHF 0.5 49.0
Deutsche Börse Commodities GmbH Frankfurt Issues EUR 1.0 16.2

Companies fully consolidated for the first time
Notes to the consolidated financial statements
Changes in the scope of consolidation in 2011
Paid-up
share
capital
Share of
votes
and capital
Company Registered office Business activity Currency mns in %
Bank Vontobel (Middle East) Ltd. Dubai Wealth Management USD 2.0 100
Participations removed from the scope of consolidation
Participation Registered office Reason for removal
Harcourt Investments, Agencia de Valores, S.A. Madrid Liquidation
Polaris Investment Advisory AG Zurich Sold to Management
Vontobel Fund Advisory S.A. Luxemburg Contributed to Vontobel Europe S.A., Luxemburg
VT Wealth Management AG Zurich Sold to the Management
Vontobel Group, Annual Reports 2011 169

Notes to the consolidated financial statements
Statutory Banking Regulations
170 Vontobel Group, Annual Reports 2011
The Vontobel Group’s consolidated financial statements were prepared in accordance
with the International Financial Reporting Standards (IFRS). FINMA stipulates that
banks domiciled in Switzerland that report their financial statements according to US
GAAP or IFRS must explain any material differences between Swiss accounting regulations
for banks (Banking Ordinance and FINMA Circular 2008/2) and the reporting
standard used. The most significant differences between IFRS and Swiss accounting
regulations for banks that are of relevance to the Vontobel Group are as follows:
Financial assets available for sale
Under IFRS, financial assets available for sale will be measured at the fair value.
Changes in the fair value will be recognized in other comprehensive income, until the
financial asset is sold, collected or otherwise disposed of, or its value is deemed to be
impaired. As soon as a financial asset available for sale is deemed to be impaired, the
cumulative unrealized loss previously entered in other comprehensive income will be
reclassified to the income statement in the reporting period. Under Swiss law, these
kinds of financial assets are recorded at the lower of cost or market. Impairment
losses, any reversals of previously recognized impairment losses as well as profits and
losses from disposals are recognized as “Other ordinary income”.
Other financial assets and liabilities measured at fair value through profit and loss
(Fair Value Option)
According to IFRS, under certain conditions financial instruments can be assigned to
the Other financial assets or liabilities category measured at fair value through profit
and loss. These financial assets and liabilities are carried at fair value in the balance
sheet, and income from the financial instruments is recognized in the income statement.
Under Swiss law, the fair value option is only available for structured products
issued by the company itself. Changes in fair value due to a change in the Group’s
own credit risk are not recorded in the income statement.
Extraordinary profit
Under IFRS, all items of income and expense are allocated to ordinary operating activities.
In accordance with Swiss law, income and expenses are classified as extraordinary
if they are not recurring or not related to operational activities.
Goodwill amortization
The amortization of goodwill has been prohibited according to IFRS since the beginning
of 2005. Instead it must be tested for impairment annually, or more frequently
if events or changes in circumstances indicate a possible impairment. Under Swiss
law, goodwill has still to be written down on a linear basis over its anticipated useful
life, but not more than 20 years.
Reserve for general banking risks
IFRS stipulates that general provisions cannot be recorded for unspecified purposes.
Under Swiss accounting regulations for banks, reserves for general banking risks are
reported as a separate component of shareholders‘ equity.

Number of personnel (total and full-time
equivalents)
Personnel
31-12-11 31-12-10
Registered
office Number FTE1 Number FTE1 Fully consolidated companies
Vontobel Holding AG Zurich 6 5.3 5 4.3
Bank Vontobel AG Zurich 1,112 1,054.1 1,060 999.9
Bank Vontobel Österreich AG Salzburg 53 48.3 49 44.0
Bank Vontobel Europe AG Munich 81 75.9 75 72.9
Bank Vontobel (Liechtenstein) AG Vaduz 14 12.8 13 11.8
Vontobel Asset Management, Inc. New York 43 43.0 41 41.0
Vontobel Fonds Services AG Zurich 12 11.3 13 12.3
Harcourt Group Zurich 64 61.2 66 64.1
Other Group companies 102 101.5 96 95.8
Total 1,487 1,413.4 1,418 1,346.1
1 Full-time equivalents
Further information on staff changes can be found in the “Sustainability at the Vontobel Group”
chapter on pages 16ff.
Vontobel Group, Annual Reports 2011 171

To the General Meeting of
Vontobel Holding AG, Zurich
Berne, 9 February 2012
Report of the statutory auditor on the consolidated financial statements
Report of the Group Auditors
Ernst & Young Ltd
Belpstrasse 23
CH-3001 Berne
Phone +41 58 286 61 11
Fax +41 58 286 68 18
www.ey.com/ch
As statutory auditor, we have audited the consolidated financial statements of Vontobel Holding AG, which comprise the income statement,
statement of comprehensive income, balance sheet, statement of equity, cash flow statement and notes (pages 70 to 170), for
the year ended 31 December 2011.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing
and maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for
selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in
accordance with Swiss law and Swiss Auditing Standards and International Standards on Auditing. Those standards require that we
plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement
of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the
internal control system relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements for the year ended 31 December 2011 give a true and fair view of the financial
position, the results of operations and the cash flows in accordance with IFRS and comply with Swiss law.
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article
728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system
exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of
Directors.
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd
Iqbal Khan Dr Philippe Wüst
Licensed audit expert Licensed audit expert
(Auditor in charge)
Vontobel Group, Annual Reports 2011 173

Vontobel Holding AG
Review of business activities 176
Key figures 177
Income statement 178
Balance sheet 180
Shareholders’ equity/Notes to the financial statements 182
Proposal of the Board of Directors 184
Auditors’ report 185
Vontobel Group, Annual Reports 2011 175

Vontobel Holding AG
Review of business activities
176 Vontobel Group, Annual Reports 2011
Vontobel Holding AG, which is headquartered in Zurich, generated a net profit of
CHF 77.1 mn in 2011, compared to CHF 131.4 mn in the previous year. The holding
company’s income stemmed mainly from prior-year profits, i.e. dividends distributed
by its operational subsidiaries. Operating income declined by 29% to CHF 138.3 mn
during the period under review due to lower income from participations. At the same
time, operating expense declined by 3% to CHF 60.3 mn. This resulted in a 41%
decrease in profit before extraordinary items and taxes to CHF 78.0 mn. As in the
previous year, no significant extraordinary income or expenses were recorded in
2011.
The Board of Directors of Vontobel Holding AG will propose the distribution of a
dividend of CHF 1.10 per registered share, comprising CHF 0.73 in the form of a
withholding tax-free repayment of premiums and CHF 0.37 in the form of an
ordinary dividend, to the General Meeting of Shareholders of 24 April 2012.
The company’s share capital amounts to CHF 65.0 mn, consisting of 65.0 mn registered
shares with a par value of CHF 1.00 each, of which 64,478,408 were entitled to
a dividend as of 31 December 2011.

Key figures
Vontobel Holding AG
Key figures
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net profit 77.1 131.4 (54.3) (41)
per registered share in CHF1 1.20 2.03 (0.83) (41)
Dividend in percent of share capital 110 2 140
per registered share in CHF 1.10 2 1.40 (0.30) (21)
Shareholders' equity (before distribution of profits) 886.4 900.0 (13.6) (2)
per registered share in CHF1 13.75 13.93 (0.18) (1)
Total operating income 138.3 193.9 (55.6) (29)
Income from participations 124.0 167.4 (43.4) (26)
Total operating expense 60.3 62.0 (1.7) (3)
Financial expense 2.6 3.3 (0.7) (21)
Personnel and general operating expenses 26.1 26.5 (0.4) (2)
Depreciation, write-offs 31.5 32.0 (0.5) (2)
Total assets 1,238.3 1,444.9 (206.6) (14)
Share capital 65.0 65.0 0.0 0
Participations 1,095.0 1,282.3 (187.3) (15)
Average return on equity in % 9.1 15.8
1 Dividend-bearing shares as per end of year
2 As per the proposal submitted to the General Meeting; CHF 0.73 will take the form of a withholding tax-free repayment of share premiums and CHF 0.37 will
comprise an ordinary dividend.
Vontobel Group, Annual Reports 2011 177

Vontobel Holding AG
Income statement
Income statement
178 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Operating income
Commission income, Vontobel Group 13.7 23.3 (9.6) (41)
Other income 0.0 1.1 (1.1) (100)
Total income from services performed 13.7 24.4 (10.7) (44)
Interest income, Vontobel Group 1.5 1.6 (0.1) (6)
Interest income, other 0.0 0.0 0.0
Subtotal interest and dividend income 1.5 1.6 (0.1) (6)
Securities income and income from hedging (1.4) 0.4 (1.8) (450)
Income from participations 124.0 167.4 (43.4) (26)
Foreign exchange income 0.0 (0.1) 0.1
Subtotal trading income and income from participations 122.6 167.7 (45.1) (27)
Gains on the sale of financial investments 0.5 0.2 0.3 150
Total financial income 124.6 169.5 (44.9) (26)
Total operating income 138.3 193.9 (55.6) (29)
Operating expense
Interest paid, Vontobel Group 2.4 2.6 (0.2) (8)
Interest expense bonds 0.0 0.7 (0.7) (100)
Subtotal interest paid 2.4 3.3 (0.9) (27)
Commission expense 0.2 0.0 0.2
Total financial expense 2.6 3.3 (0.7) (21)
Occupancy expense, furniture 0.1 0.1 0.0 0
PR, advertising, annual report, consulting and audit expense 20.2 20.6 (0.4) (2)
Other operating and office expense 0.4 0.5 (0.1) (20)
Total operating and office expense 20.7 21.2 (0.5) (2)
Personnel expense 5.0 5.0 0.0 0
Social contribution and pension benefits 0.4 0.3 0.1 33
Total personnel expense 5.4 5.3 0.1 2
Depreciation/write-offs on financial investments 30.2 29.0 1.2 4
Other depreciation/write-offs and provisions 1.3 3.0 (1.7) (57)
Total ordinary depreciation/write-offs and provisions 31.5 32.0 (0.5) (2)
Total other operating expense 0.1 0.2 (0.1) (50)
Total operating expense 60.3 62.0 (1.7) (3)
Profit before extraordinary items and taxes 78.0 131.9 (53.9) (41)

Net profit
Vontobel Holding AG
Income statement
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Net profit before extraordinary items and taxes 78.0 131.9 (53.9) (41)
Extraordinary income 0.0 0.1 (0.1) (100)
Total extraordinary income 0.0 0.1 (0.1) (100)
Total extraordinary expense 0.0 0.0 0.0
Total tax expense 0.9 0.6 0.3 50
Net profit for the year 77.1 131.4 (54.3) (41)
Vontobel Group, Annual Reports 2011 179

Vontobel Holding AG
Balance sheet
Assets
180 Vontobel Group, Annual Reports 2011
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Current assets
Due from banks, Vontobel Group 9.1 8.1 1.0 12
Total liquid assets 9.1 8.1 1.0 12
Other receivables 0.1 0.0 0.1
Total receivables 0.1 0.0 0.1
Total securities 3.5 2.4 1.1 46
Total accrued income and prepaid expenses 0.2 9.2 (9.0) (98)
Total current assets 12.9 19.7 (6.8) (35)
Non-current assets
Accounts receivable, Vontobel Group 122.9 131.9 (9.0) (7)
Securities 7.5 11.0 (3.5) (32)
Participations 1,095.0 1,282.3 (187.3) (15)
Total financial investments 1,225.4 1,425.2 (199.8) (14)
Furniture and equipment 0.0 0.0 0.0
Total fixed assets 0.0 0.0 0.0
Total intangible non-current assets 0.0 0.0 0.0
Total non-current assets 1,225.4 1,425.2 (199.8) (14)
Total assets 1,238.3 1,444.9 (206.6) (14)
of which subordinated assets due from Group companies 3.9 5.0 (1.1) (22)

Liabilities and Shareholders' equity
Vontobel Holding AG
Balance sheet
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Liabilities
Short-term liabilities 0.4 0.1 0.3 300
Accrued expenses and deferred income 6.5 4.8 1.7 35
Total short-term liabilities 6.9 4.9 2.0 41
Due to banks, Vontobel Group 210.0 335.0 (125.0) (37)
Due to customers, Vontobel Group 110.0 180.0 (70.0) (39)
Provisions 25.0 25.0 0.0 0
Total long-term liabilities, provisions 345.0 540.0 (195.0) (36)
Total liabilities 351.9 544.9 (193.0) (35)
Shareholders' equity
Share capital 65.0 65.0 0.0 0
General reserve 162.0 162.0 0.0 0
Reserves from capital contributions 47.8 47.8 0.0 0
Reserve for own shares 51.0 54.1 (3.1) (6)
Total statutory reserve 260.8 263.9 (3.1) (1)
Other reserve 4.0 0.9 3.1 344
Retained earnings 479.5 438.8 40.7 9
Net profit for the year 77.1 131.4 (54.3) (41)
Total retained earnings 556.6 570.2 (13.6) (2)
Total shareholders' equity 886.4 900.0 (13.6) (2)
Total liabilities and shareholders' equity 1,238.3 1,444.9 (206.6) (14)
Vontobel Group, Annual Reports 2011 181

Vontobel Holding AG
Shareholders’ equity/Notes to the financial statements
Shareholders' equity
182 Vontobel Group, Annual Reports 2011
Following approval of the Board of Directors’ proposal for the distribution of profit for the year
ended 31 December 2011, shareholders’ equity will be as follows:
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Share capital 65.0 65.0 0.0 0
Statutory reserve 260.8 263.9 (3.1) (1)
Other reserve 4.0 0.9 3.1 344
Retained earnings 532.8 479.5 53.3 11
Total shareholders' equity after distribution of profit1 862.6 809.3 53.3 7
As at 31-12-11. The exact amount will be determined at the dividend payment date in May 2012.
Notes to the financial statements
31-12-11 31-12-10 Change to 31-12-10
CHF mns CHF mns CHF mns in %
Total amount of guarantees and pledges in favour of third parties:
Guarantees and unpaid capital stemming from participations 7,666.7 9,222.2 (1,555.5) (17)
Securities lending with Group companies
Total amount of assets assigned or pledged as security for
own liabilities including assets to which title has been reserved:
0.0 0.0 0.0
Assets pledged in favour of Bank Vontobel AG 20.1 21.5 (1.4) (7)
from which credit has been drawn 20.1 21.5 (1.4) (7)
Total amount of off-balance sheet lease liabilities none none
Liabilities under employee benefit schemes:
Contributions to employee benefit schemes have been paid and Vontobel Holding AG has drawn no credits from employee benefit schemes.
Principal amount, interest rates and maturity of bonds issued by the Company:
In the financial years 2011 and 2010, there were no bonds or convertible bonds outstanding.

Vontobel Holding AG
Notes to the financial statements
31-12-11 31-12-10
Book value Book value
CHF mns CHF mns
Principal subsidiaries/associated companies
Bank Vontobel AG, Zurich 394.2 394.2
Bank Vontobel (Liechtenstein) AG, Vaduz 20.0 20.0
Bank Vontobel Österreich AG, Salzburg 53.8 56.6
Bank Vontobel Europe AG, Munich 66.1 73.6
Bank Vontobel (Middle East) Ltd., Dubai 5.6 0.0
Vontobel Fonds Services AG, Zurich 4.0 4.0
Vontobel Beteiligungen AG, Zurich 270.3 460.3
Vontobel Asset Management, Inc., New York 5.8 5.8
Vontobel Financial Products Ltd. Dubai 62.3 62.3
Harcourt Investment Consulting AG, Zurich 195.0 187.2
Other 17.9 18.3
For further information on the main participations, refer to the consolidated accounts on page 168
Total amount of replacement reserves released plus any other reserves released in excess of the amount of new funds allocated to such reserves:
No significant amount of hidden reserves was released. There are no replacement reserves.
Information on the acquisition, disposal and number of own shares held by the company, including transactions involving other companies in which a majority
interest is held:
Refer to the consolidated accounts, note 26, for further information on other purchases and disposals
Liabilities:
See consolidated accounts, notes 23 to 24
Amount of the authorized or conditional capital increase:
See consolidated accounts, note 26
Details of shareholders pursuant to Art. 663c of the Swiss Code of Obligations:
See consolidated accounts, page 45
For information on compensation, loans and shareholdings of members of the Board of Directors and the Group Executive Management pursuant to Art. 663b bis
and Art. 663c of the Swiss Code of Obligations, please refer to the consolidated accounts, notes 28 to 30
For information on the risk evaluation process:
See the "Risk management and risk control" section of the consolidated financial statements, pages 89 to 104
Information relating to the application of the Internal Control System (ICS):
See the consolidated accounts, page 103f.
For further details on the consolidated accounts, please refer to pages 69 to 171
Vontobel Group, Annual Reports 2011 183

Vontobel Holding AG
Proposal of the Board of Directors
184 Vontobel Group, Annual Reports 2011
Proposal of the Board of Directors
The Board of Directors is submitting the following proposal for the distribution of
profit at the annual General Meeting of Shareholders on 24 April 2012:
CHF mns
Net profit for the year 77.1
Retained earnings prior year 479.5
Total retained earnings 556.6
Reclassification of reserves from capital contributions as free reserves 1 47.1
Dividend from retained earnings 37% 1 Dividend from reserves from capital contributions following reclassification as
23.8
free reserves 73% 1 47.1
Total dividends
Allocation to general reserve
Allocation to other reserves
70.9
Carried forward to the new accounting period 532.8
Total retained earnings 556.6
1 Share capital ranking for dividend as of 31-12-11 CHF 64.5 mn. The exact amount will be determined
at the dividend payment date in May 2012.
Dividend payment
If the proposal is approved, the dividend will be distributed as follows:
Dividend from retained earnings per registered share with a par value of
CHF 1.00 (in CHF) 0.37
Coupon no.
Dividend from reserves from capital contributions following reclassifica-
11
tion as free reserves per registered share with a par value of CHF 1.00 0.73
Coupon no. 12
Ex-dividend date 26 April 2012
Record date 30 April 2012
Payment date 02 May 2012

To the General Meeting of
Vontobel Holding AG, Zurich
Berne, 9 February 2012
Report of the statutory auditor on the financial statements
Ernst & Young Ltd
Belpstrasse 23
CH-3001 Berne
Phone +41 58 286 61 11
Fax +41 58 286 68 18
www.ey.com/ch
Auditors’ report
As statutory auditor, we have audited the financial statements of Vontobel Holding AG, which comprise the income statement, balance
sheet and notes (pages 178 to 184), for the year ended 31 December 2011.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law
and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control
system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The
Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates
that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant
to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating
the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31 December 2011 comply with Swiss law and the company’s articles of
incorporation.
Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article
728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system
exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd
Iqbal Khan Dr Philippe Wüst
Licensed audit expert Licensed audit expert
(Auditor in charge)
Vontobel Group, Annual Reports 2011 185

Vontobel Group, Annual Reports 2011 187

Information for shareholders
188 Vontobel Group, Annual Reports 2011
Vontobel Holding AG registered shares
ISIN CH001 233 554 0
Security number 001 233 554
Par value CHF 1.00
Ticker symbols
Stock exchange listing Bloomberg Reuters Telekurs
SIX Swiss Exchange VONN SW VONTZn.S VONN
Credit ratings
Bank
Vontobel AG
Vontobel
Holding AG
Standard & Poor’s Short-Term A-1 A-1
Long-Term A+ A
Moody’s Short-Term Prime-1
Long-Term A1 A2
Financial calendar
Annual General Meeting 2012 24 April 2012
Publication half-year results 2012 27 July 2012
Publication annual results 2012 5 February 2013
Investor Relations
Susanne Borer
Telephone +41 (0)58 283 73 29
E-mail investor.relations@vontobel.ch
Media Relations
Reto Giudicetti, Corporate Communications
Telephone +41 (0)58 283 61 63
E-mail media.relations@vontobel.ch
Vontobel Holding AG
Gotthardstrasse 43
CH-8022 Zurich
Telefon +41 (0)58 283 59 00
Internet www.vontobel.com
Corporate Governance www.vontobel.com/CH/EN/About-Vontobel-Corporate-Governance
Sustainability www.vontobel.com/sustainability
This report also appears in German.
The German version is prevailing.

Switzerland
Zurich
Vontobel Holding AG
Gotthardstrasse 43
CH-8022 Zurich
Telephone +41 (0)58 283 59 00
www.vontobel.com
Bank Vontobel AG
Gotthardstrasse 43
CH-8022 Zurich
Telephone +41 (0)58 283 71 11
Vontobel Swiss Wealth Advisors AG
Tödistrasse 17
CH-8022 Zurich
Telephone +41 (0)44 287 81 11
Vontobel Fonds Services AG
Gotthardstrasse 43
CH-8022 Zurich
Telephone +41 (0)58 283 74 77
Vontobel Securities AG
Gotthardstrasse 43
CH-8022 Zurich
Telephone +41 (0)58 283 71 11
Harcourt Investment Consulting AG
Gotthardstrasse 43
CH-8022 Zurich
Telephone +41 (0)44 365 10 00
www.harcourt.ch
Basel
Bank Vontobel AG
St. Alban-Anlage 58
CH-4052 Basel
Telephone +41 (0)58 283 21 11
Berne
Bank Vontobel AG
Spitalgasse 40
CH-3011 Berne
Telephone +41 (0)58 283 22 11
Geneva
Bank Vontobel AG
Place de l’Université 6
CH-1205 Geneva
Telephone +41 (0)22 809 90 90
Lucerne
Bank Vontobel AG
Schweizerhofquai 3a
CH-6002 Lucerne
Telephone +41 (0)41 249 31 11
Austria
Salzburg
Bank Vontobel Österreich AG
Rathausplatz 4
A-5024 Salzburg
Telephone +43 (0)662 8104 0
Vienna
Bank Vontobel Österreich AG
Kärntner Strasse 51
A-1010 Vienna
Telephone +43 (0)1 513 76 40
Vontobel Europe S.A.
Vienna Branch
Kärntner Strasse 51
A-1010 Vienna
Telephone +43 (0)1 513 76 40
Germany
Frankfurt am Main
Bank Vontobel Europe AG
Frankfurt am Main Branch
WestendDuo
Bockenheimer Landstrasse 24
D-60323 Frankfurt am Main
Telephone +49 (0)69 297 208 0
Vontobel Financial Products GmbH
WestendDuo
Bockenheimer Landstrasse 24
D-60323 Frankfurt am Main
Telephone +49 (0)69 297 208 11
Cologne
Bank Vontobel Europe AG
Cologne Branch
Auf dem Berlich 1
D-50667 Cologne
Telephone +49 (0)221 20 30 00
Hamburg
Bank Vontobel Europe AG
Hamburg Branch
Sudanhaus
Grosse Bäckerstrasse 13
D-20095 Hamburg
Telephone +49 (0)40 638 587 0
Munich
Bank Vontobel Europe AG
Alter Hof 5
D-80331 Munich
Telephone +49 (0)89 411 890 0
Great Britain
Vontobel Europe S.A.
London Branch
Third Floor
22 Sackville Street
London W1S 3DN UK
Telephone +44 207 255 83 00
Hong Kong
Vontobel Asia Pacific Ltd.
2301 Jardine House
1 Connaught Place, Central, Hong Kong
Telephone +852 3655 3990
Italy
Vontobel Europe S.A.
Milan Branch
Piazza degli Affari, 3
I-20123 Milan
Telephone +39 02 6367 3411
Where to find us
Liechtenstein
Bank Vontobel (Liechtenstein) AG
Pflugstrasse 20
FL-9490 Vaduz
Telephone +423 236 41 11
Vontobel Treuhand AG
Pflugstrasse 20
FL-9490 Vaduz
Telephone +423 236 41 80
Luxembourg
Vontobel Europe S.A.
1, Côte D’Eich
L-1450 Luxembourg
Telephone +352 26 34 74 1
Vontobel Management S.A.
1, Côte D’Eich
L-1450 Luxembourg
Telephone +352 26 34 74 40
Spain
Vontobel Europe S.A.
Sucursal en España
Paseo de la Castellana, 40 bis - 6º
E-28046 Madrid
Telephone +34 91 520 95 34
USA
Vontobel Asset Management, Inc.
1540 Broadway, 38th Floor
New York, NY 10036, USA
Telephone +1 212 415 70 00
www.vusa.com
Vontobel Securities Ltd.
New York Branch
1540 Broadway, 38th Floor
New York, NY 10036, USA
Telephone +1 212 792 58 20
U.A.E.
Vontobel Financial Products Ltd.
Liberty House, Office 913
Dubai International Financial Centre
P.O. Box 506814
Dubai, U.A.E.
Telephone +971 (4) 703 85 00
Bank Vontobel (Middle East) Ltd.
Liberty House, Office 913
Dubai International Financial Centre
P.O. Box 506814
Dubai, U.A.E.
Telephone +971 (4) 703 85 00
Vontobel Invest Ltd.
Liberty House, Office 913
Dubai International Financial Centre
P.O. Box 506814
Dubai, United Arab Emirates
Telephone +971 (4) 703 85 00
Vontobel Group, Annual Reports 2011 189

Publishing system
Multimedia Solutions AG, Zurich
Press
Neidhart + Schön AG, Zurich
Consultant on GRI Sustainability Reporting
Sustainserv, Zurich and Boston
SC2011021406