Swissquoteswissquote

SwissquoteSwissquote

Annual Results Presentation 2006 SWX, February 9, 2007

1 AgendaAgenda

• Introduction • Key figures 2006 • Results for the 4th quarter 2006 • Balance sheet • Distribution of profit • System expansion and new services • Business model • Targets 2007

2 IntroductionIntroduction

3 Introduction

• Best year and best quarter in Swissquote’s history with 15,010 new clients, inflow of just under CHF 1 billion new funds and 60 percent revenue growth • 5th year of client growth above 25% • Net profit margin of 49 percent • Strong development of the company with a staff increase of 23% to 160 • CHF 5.- distribution of profit to shareholders and share split

4 KeyKey ffiguresigures 20062006

5 Key figures 2006

Compared to 2005

Net revenues 74.7m +28.1m +60.3%

Net profit 36.5m +21.8m +148.8%

Clients 64,067 +15,010 +30.6%

Assets 4,492m +1,506m +50.4%

Equity 93.5m +26.5m +39.6%

6 Strong organic growth

Clients Assets 70'000 4'492 5'000 4'500 60'000 4'000 50'000 2'986 3'500 3'000 40'000 2'019 2'500 30'000 1'560 2'000 20'000 1'500 733 1'000 10'000 500 0 - 2002 2003 2004 2005 2006

7 Cost /income ratio below 50%

CHF '000 Net Revenues Net Profit Cost/Income Ratio

80'000 80.0% 77.0% 76.1% 70'000 74'747 70.0% 65.7% 60'000 60.0%

50'000 49.0% 50.0% 40'000 46'628 40.0%

30'000 34'273 36'529 30.0% 29'797 20'000 20.0%

10'000 14'683 10.0% 5'129 6'057 - 0.0% 2003 2004 2005 2006

8 Stable asset margin

Assets under Custody Asset Margin 5'000 200 225 191 192 4'500 186 200 4'000 175 3'500 165 150 3'000 125 2'500 100 2'000 75 1'500 1'000 50 500 25 0 0 2002 2003 2004 2005 2006

9 Leverage effect is key for success

CHF Average Revenue & Costs per client 1'600

1'400 1'322 1'262 1'200 1'115 1'053 973 1'000 859 800 740 740 692 648 600

400

200

0 2002 2003 2004 2005 2006

10 Higher than average transaction numbers

Total Trades Trades per Client per Year 1'500'000 30 25 1'300'000 23 25 1'100'000 20 19 20 900'000 15 700'000 15

500'000 10 300'000 5 100'000

-100'000 2002 2003 2004 2005 2006 -

11 KeyKey figuresfigures forfor thethe 44 th qquarteruarter 20062006

12 Strong revenue growth (CAGR = 60%)

22'500.0 20'000.0 EBITDA Quarterly Revenues 17'500.0 15'000.0 12'500.0 10'000.0 7'500.0 5'000.0 2'500.0 0.0 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06

13 The commission business is dominant

5% 7% 8%

18% 62%

Custody & other Fees & Commission Interest Trading Other

14 Revenue growth in all reported segments

20'000 Other (Platform) Trading Interest 15'000 Net Fee & Commission Income

10'000

5'000

0 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06

15 Opex are covered by non -commission revenues

Opex Coverage 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06

16 6.7% more clients in the 4 th quarter …

Quarterly Client Growth 65'000 4036 60'000 55'000 50'000 45'000 40'000 35'000 30'000 25'000 20'000 15'000 10'000 5'000 0 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06

17 … and 245m net new monies

CHF Mio Net Assets Inflow 4'750 245 4'500 4'250 4'000 3'750 3'500 3'250 3'000 2'750 2'500 2'250 2'000 1'750 1'500 1'250 1'000 750 500 250 0 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06

18 Client growth is accelerating

Total Accounts Requests 70000 200

65000 180

60000 160

55000 140

50000 120

45000 100

40000 80

35000 60

30000 40

25000 20

20000 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-07

19 HNWI clients are growing faster

90% Original Clients 80% Emergent Client 70%

60%

50%

40%

30%

20%

10%

0% 2003 2004 2005 2006

20 BalanceBalance sheetsheet

21 Balance sheet

Total balance 1033.0 sheet 692.0

910.4 Due to customers 610.0

93.5 Equity 67.0

- 200.0 400.0 600.0 800.0 1,000.0 1,200.0 CHFm

2005 2006

22 Structure of assets at 31.12.2006

Structure of assets

1% 1%

91% 9% 1%

Cash Loans to customers Property & systems Deferred taxes Other assets

23 Structure of assets at 31.12.2006

Structure of liabilities and equity

88% 12%

Due to customers Other liabilities Equity

24 DistributionDistribution ofof profitsprofits

25 Profit

2006 2005 Operating profit 34.8m 13.0m

Income tax , net 1.7m 1.7m

Net profit 36.5m 14.7m

Earnings per share 25.84 10.56

26 Distribution of profit and share split

• The board will propose to the GA a further distribution to shareholders in the form of • A capital reduction of CHF 3.- per share • A dividend of CHF 2.- per share • 10 for 1 split

6 Capital Reduction

5 Dividend

4 3.00 3

2 2.00

1 2.00 1.00 0 2004 2005 2006 27 SystemSystem expansionexpansion andand newnew servicesservices

28 System expansion 2006

• Mobile trading (Wap) • New OTC trading with German issuers (Deutsche Bank, Commerzbank, Citigroup, Goldman Sachs and HSBC) • New Stock Exchanges: London and Smart Trading • New online wealth management tool: "Profit & Loss" • New financial data provider: Reuters • Further development of the AM tool for asset managers • Launch of the "AWP Premium News Service" for clients

29 BusinessBusiness modelmodel

30 Selected European market players by country

UK Netherlands Denmark Population: 59.9 MM Population: 16.2 MM Population: 5.3 MM Norway Sweden Population: 4.6 MM Population: 9.0 MM – TD Waterhouse – Alex (Rabobank) – Nordnet – Squaregain – Binck NV – Saxo bank – NetTrade – Aktiedirekt – Barclays Stockbroker – Euroinvestor – E*Trade Norway – Aktieinvest – Selftrade – Stocknet – Nordnet – AktieSpar Online – Hoodless Brennan – Avanza – Comdirect – E*Trade Sverige – Boursorama – Neonet – Charles Schwab – Nordnet – Neonet – SEB Belgium Poland Population: 10.4 MM Population: 38.5 MM – Fortis DAD – Bankowy Dom Maklerski PKO BP S.A. – CERA – Biuro Maklerskie BPH - – Binck NV PBK S.A. – CortalConsors – Centralny Dom Maklerski Pekao S.A. Luxembourg – Internetowy Dom Maklerski Population: 0.5 MM S.A – mBank – Internaxx – Nordnet – CortalConsors – Fineco Germany Population: 82.6 MM France – DAB Bank Population: 60.7 MM – CortalConsors – Boursorama – Comdirekt – CortalConsors – Boursorama – Comdirect – DiBa (ING) – Fineco – Fineco – Neonet – Neonet Austria Switzerland Italy Population: 8.2 MM Greece Hungary Spain Population: 7.5 MM Population: 57.4 MM Population: 11.2 MM Population: 10.1 MM Population: 41.8 MM – DAB Bank – Swissquote – Fineco – National Bank of Greece – Intereuropa Bank Rt – CortalConsors – Direkt Anlage Service AG – Trade-Net – CortalConsors – I.E.C. Haramis – Erste.NetTrading – Boursorama – CA-Discount Broker – Yellowtrade (Postfinance) – Comdirect – Elso Internet Broker Kft – Bankinter – Comdirekt – E-Sider (BCV) – Neonet – Openbank – Erste.NetTrading – Synthesis Bank – Fineco – Tradejet

31 Equity ownership in Switzerland

Swiss Banking Institute © Cocca / Volkart / Schmid Universität Zürich 34 Investment goals with private equity investments

Swiss Banking Institute © Cocca / Volkart / Schmid Universität Zürich 36 MarketMarket potentialpotential ** inin SwitzerlandSwitzerland • Over the medium term, up to 40% of shareholders in Switzerland (400,000 clients) will be using online services such as Swissquote's • 125,000 already have an online account with a low cost online bank • 310,000 clients regularly use the internet to send stock exchange orders

28% 60%

12%

Existing Online Clients Next Adopters Not Online Affine Yet

*No. of clients (source: Swissquote & Handelszeitung ) 37 SwissquoteSwissquote 's's marketmarket shareshare

• Swissquote has a market share of 52% • Swissquote can grow its client base to 200,000 by 2011 (25% growth p.a.)

48%

52%

Swissquote Other Online Broker

*No. of clients (source: Swissquote & Handelszeitung ) 38 Conclusion

• In every European country a market leader has emerged with a strong affinity to the local retail market. • Cross-border offers and offers from foreign market leaders are only moderately successful. • The "Swissness" of the provider is a crucial factor. • Switzerland’s online brokerage market still has growth potential of over 220%. Swissquote can thus still triple its client base.

39 Conclusion

• To exhaust this potential a provider must: 1. Offer a broad product range 2. Have a strong information platform 3. Have inhouse technlogy 4. Provide tools that help the client to make investment decisions 5. Ensure good conditions in all product categories

40 OutlookOutlook andand goalsgoals forfor 20072007

41 Goals for 2007

• Energetic growth in all client groups 16,000 new clients in 2007 (80,000 clients in all) with 1 billion in new money • Expand services and establish links with new exchanges (Eurex in the 1st quarter 2007) and new investment decision tools • Further increase in productivity and reduction of costs per client in 2007 • Partnership with Swisscom to be expanded further • Sponsoring contract with SF1 TV renewed until August 2008

42 Partnership with Swisscom

43 44 1st quarter 2007

• The 1st quarter is going well • Strong growth in clients and client assets

Total Accounts Target 69000

68500 68000

67500 67000

66500

66000 65500

65000 64500

64000 0 1 .0 1 0 8 .0 1 1 5 .0 1 2 2 .0 1 2 9 .0 1 0 5 .0 2 1 2 .0 2 1 9 .0 2 2 6 .0 2 0 5 .0 3 1 2 .0 3 1 9 .0 3 2 6 .0 3