2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

Performance of Julius Baer Holding registered share (indexed)
120
100
80
60
40
20
31.12.01 31.12.02 31.12.03 31.12.04 31.12.05
Julius Baer registered share SMI
European banking index
Ticker symbols
Reuters BAER.VX
Bloomberg BAER VX
Swiss securities number 1 208 301
Listing
Switzerland SWX Swiss Exchange
Key figures for shares
2004 2005 Change
CHF CHF %
Information per registered share
Equity (book value, as of 31.12.) 30.8 56.1 82.4
Net profit (EPS) 4.1 2.6 -37.3
Dividend1 1.6 1.0 -37.5
Market price (as of 31.12.) 68 93 36.0
High price 97 95 -
Low price 63 58 -
Price/net profit ratio 16.4 35.9 -
Price/book value ratio 2.2 1.7 -
Market capitalization (CHF m, as of 31.12.) 2 3449 10393 201.3
Capital structure (as of 31.12.)
Number of registered shares
par value CHF 0.10 53841610 111628239 107.3
of which entitled to dividends 50393810 111628239 121.5
Weighted average number of shares 50883495 56405547 10.9
Share capital (CHF m) 5.4 11.2 107.3
of which entitled to dividends 5.0 11.2 121.5
1 As proposed to the Shareholders’ Meeting
2 Shares entitled to dividends
Source: Thomson Financial Datastream
Julius Baer’s stock
Performance in 2005
The performance of Julius Baer’s stock during the
financial year was shaped by the favorable stock
market climate and especially by the outperformance
of the Swiss equity market. But the 61%
gain in the share price, almost double that of the
SMI (+33%) and significantly better than the industry
index, also reflects the following specific
corporate developments:
On 17 January 2005, we announced the introduction
of single-class registered shares, marking
the end of the majority voting interest of the
Baer family. Following approval at the Annual
General Meeting on 12 April 2005, each of the
existing bearer shares at CHF 0.50 par value per
share were split and converted into five registered
shares at CHF 0.10 par value per share.
There are no voting restrictions in the new capital
structure.
The resulting enhanced entrepreneurial flexibility
led to the announcement on 5 September 2005
of the proposed acquisition of the three private
banks Ehinger & Armand von Ernst AG, Ferrier
Lullin & Cie SA and BDL Banco di Lugano as well
as the specialized asset manager GAM Holding AG
from UBS AG for total compensation of CHF 6.01
billion. This caused a jump in the share price
despite the fact that part of the financing was
supposed to come from a CHF 2.5 billion capital
increase, with subscription rights for existing
shareholders, and that UBS was supposed to be
granted a 21.5% equity stake in the new Julius
Baer Group. Based on the resolution of the
shareholders at the Extraordinary General Meeting
on 10 November 2005, the transaction was
successfully completed on 2 December 2005. As
a result, the total number of registered shares
outstanding more than doubled.
Additional information on the share and capital
structure is presented in the section on corporate
governance (pages 32–59).