Annual Report 2009 Ambitious, committed, independent and professional. Four core values that are embodied by our bank and our employees. In 2009, a turbulent year, we continued to steer our own course. We took an independent line and proved we are a stable bank that is committed to our clients, and uses all the knowledge and professional expertise at our disposal to provide them with the best possible service. The high standards we set ourselves reflect our ambition. Essentially, little has changed at our bank, where we have continued as we have done for nearly 275 years. Ambitious, committed, independent and professional: these values are part of our DNA. Annual report 2009 20 Ambitious Tom de Swaan 34 Committed Jessica Biermans 44 Professional Anna Bouman 54 Independent Hans Jacobs Contents Profile Supplementary notes 5 184 Acquisitions in 2009 186 Consolidated balance sheet by accounting policy at Strategy 31 December 2009 6 187 Consolidated balance sheet by accounting policy at 31 December 2008 Key data 188 Remuneration of the Board of Managing Directors and 8 Supervisory Board 192 Related parties Information for shareholders 194 Non-current liabilities 10 196 Segment information 201 Events after the balance sheet date Message from the Chairman of the Board of Managing Directors Company financial statements 14 203 Company balance sheet at 31 December 2009 204 Company income statement for 2009 Report of the Supervisory Board 205 Accounting policies for the company financial statements 16 206 Notes to the company financial statements Financial performance and outlook Other information 22 209 Auditor’s report 210 Profit appropriation Services to our clients 211 Events after the balance sheet date 28 Private Banking 212 Stichting Administratiekantoor van gewone aandelen A 31 Asset Management Van Lanschot 36 Business Banking 213 Stichting Preferente aandelen C Van Lanschot 39 Corporate Finance & Securities 214 Personal details of members of the Supervisory Board 215 Personal details of members of the Board of Managing Our employees Directors 42 216 Overview of general managers, members of the Employees’ Council and Advisory Councils Corporate social responsibility 217 Principal subsidiaries 46 218 Branches in the Netherlands 220 Branches in Belgium Risk & capital management 221 Glossary 47 Compliance, duty of care, laws and regulations 52 Corporate Governance 56 Remuneration policy for members of the Board of Managing Directors 64 Financial statements 68 Consolidated balance sheet at 31 December 2009 70 Consolidated income statement for 2009 72 Consolidated statement of comprehensive income for 2009 73 Consolidated statement of shareholders’ funds 74 Consolidated cash flow statement for 2009 Notes 77 Summary of significant accounting principles 80 Summary of significant accounting policies 88 Risk management 134 Notes to the consolidated balance sheet 171 Notes to the consolidated income statement Profile 5 Profile Van Lanschot is the oldest independent bank in the Netherlands Founded in 1903, Kempen has the experience necessary to with a history dating back to 1737. provide high-quality advice based on a long-standing, personal Van Lanschot offers a full range of services to high net-worth relationship with the client. Kempen aims to operate selectively, individuals in the Netherlands and Belgium, as well as particularly during times when the amount of information on entrepreneurs and their businesses. Van Lanschot stands for offer is especially high. It does this chiefly by focusing its services high-quality services founded on advice, personal service and on segments in which in-depth research and advice can provide customised solutions. genuine added value, such as small and medium-sized listed companies, and biotech and real estate companies. Full service proposition Our services are organised into four client segments: Private Banking, Asset Management, Business Banking and Corporate Finance & Securities. Our services to high net-worth individuals revolve around wealth creation and protection. We offer our clients customised investment solutions, in keeping with our ambition of being the best private bank in the Netherlands and Belgium. Under the Van Lanschot Kempen brand, the bank focuses on the top segment of high net-worth individuals (more than € 5 million in freely investible assets). Furthermore, Van Lanschot offers financial services specifically for the healthcare sector under the CenE Bankiers brand. Our product offering is based on open architecture and a transparent fee structure. In the corporate sector, we focus on services to entrepreneurs, where we seek to meet the private as well as the professional needs of business owners and managers. Our main clients are family businesses and their directors/ majority shareholders. In the institutional market, we focus primarily on comprehensive fiduciary investment solutions. Banking with care and attention Van Lanschot has made a conscious choice to remain of a size that strikes the right balance between offering comprehensive, high-quality advisory services and ensuring a personal approach, with short communication lines. We are attentive and responsive to our clients’ needs, while also offering a high degree of professionalism and discretion. Personal relationships are Robein Leven paramount. Independence is the cornerstone of our business A number of non-strategic associates are consolidated in model and allows us to put the interests of our clients first. Van Lanschot’s annual figures for 2009. The largest of these associates is Robein Leven NV (Robein). Van Lanschot Always close to our clients intends to sell these associates in due course. In 2009, In the Netherlands, Van Lanschot has a nationwide presence with Van Lanschot acquired all the shares in Robein. Robein branches in most large cities. This network allows Van Lanschot operates as an independent business and has not been to offer all financial services throughout the country. With eight integrated into Van Lanschot. branches in Belgium, Van Lanschot focuses exclusively on high net-worth individuals and institutional investors. In order to Robein is a Dutch life assurance company that specialises provide our private clients with the best possible service, we also in annuities, wealth creation and capital management. have branches in Curacao, Luxembourg and Switzerland. Since its foundation in 1981, Robein has set itself apart by providing transparent, personal services with a high Kempen & Co degree of expertise and professionalism. In the annual Kempen & Co NV (Kempen), which has been a wholly-owned client satisfaction survey, Robein was named as the best subsidiary of F. van Lanschot Bankiers NV since 2007, is a Dutch life assurance company in the Netherlands by Independer. merchant bank active in the areas of asset management, nl in 2008 and 2009. securities brokerage and corporate finance. Kempen offers a range of specialist financial services for institutional investors, The figures in this annual report were prepared inclusive of businesses, financial institutions, government agencies and Robein, unless indicated otherwise. semi-public institutions, foundations and high net-worth individuals. 6 Strategy Strategy The best private bank in the Netherlands and Belgium Mission To offer high-quality financial services to wealthy individuals, director-owners and other select client groups. Vision Van Lanschot aims to be the best Private Bank in the Netherlands and Belgium. Targets Clients Client satisfaction Duty of care Continue to outperform the benchmark in the loyalty index. Adopt and continuously improve a customer care policy that sets the tone for the sector and goes beyond the statutory framework. Investment performance Market share Achieve a higher risk-weighted investment performance than At least double the number of target group clients in the private the benchmark. banking market between 2009 and 2013. Strategic action plan 2009-2013 The way in which we will realise our vision and achieve our objectives is set out below in a strategic action plan for the next few years. This plan has four main points, which are broken down into several dozen specific action items for members of the Board of Managing Directors, directors and senior private bankers: 1 2 Focus on Private Banking Enhance commercial effectiveness We focus mainly on wealthy private individuals in the We focus our commercial efforts on our main target group Netherlands and Belgium and entrepreneurs and their clients. In connection with this, we invest in the acquisition and enterprises in the Netherlands. We offer these target group commercial skills of our employees, in our brand name and in an clients a full range of services, centring around wealth effective support organisation for the commercial activities. planning. All other activities are ancillary to Private Banking. Core values Ambitious Committed Our core values reflect the way in which we will achieve our objectives. They provide employees with a framework to use when making commercial and other decisions, and also give clients an impression of the services they can expect from us. Our core values are applied consistently to help ensure that our culture appeals to clients and employees. Strategy 7 Employees Finance Status as employer BIS Tier I ratio Be an employer of choice for top talent in the financial At the upper end of the market. * sector. Return on shareholders’ funds Higher than our cost of equity. * * It is difficult to set measurable targets for these objectives given current