credit-suisse slides - presentation to analysts and media

FULL YEAR ANDFOURTH QUARTER 2001 RESULTS

Presentation to Analysts and the MediaZurich, March 12, 2002

PRESENTATION

§ Q4 AND 2001 RESULTS SUMMARY

§ CONSOLIDATED RESULTS Q4 2001

§ ASSET QUALITY & CAPITAL ADEQUACY

§ BUSINESS UNIT RESULTS

§ PRIORITIES / OUTLOOK

§ SUPPLEMENTS

MAIN STRATEGIC ACHIEVEMENTS IN 2001

§ Broadly maintained market positions in all of the Group’s core businesses, notably combined market position of CSFB and DLJ

§ Continued momentum and good results in asset gathering / asset management businesses given weak financial markets

§ Steps taken at Credit Suisse First Boston to take full advantage of excellent starting position to be one of the leading investment bankss New top management appointmentss Consistent ‘one-firm culture’ approachs Implementation of cost reduction initiative, to adapt cost base to market

conditions and peers

§ Streamlining of organization into two business units, CSFS and CSFB, to achieve synergies and enhance client focus

§ Continued focus on client service, improving risk and complianceenvironment, cost management, retaining and attracting best employees, and shareholder value

HIGHLIGHTS Q4 AND 2001

§ Q4 net operating profit * CHF 616 m, reported loss of CHF 830 m

§ 2001 net operating profit * CHF 4.0 bn, reported net profit of CHF 1.6 bn,down 45% and 73% respectively versus 2000

§ Results affected by CSFB net operating losses * in Q3 and Q4(CHF 204 m / 327 m), due toØ weaker FI revenue Q4, losses incl. Enron, ArgentinaØ increased credit provisionsØ private equity write-downs

Q4 CHF 1.4 bn pre-tax exceptional items at CSFBSwiss Life write-down of CHF 370 m in H2

§ Solid results in all other businesses given weak market conditions

§ Strong new asset inflow - CHF 66.4 bn, up 14% versus 2000

* excl. amortization of acquired intangible assets and goodwill as well as exceptional items, net of tax

OVERVIEW Q4 AND 2001 RESULTS

Net operating profit *, CHF m

Reported net profit, CHF m

Operating ROE *

Operating EPS *, CHF

Capital repayment per share, CHF

Net new assets, CHF bn

AuM, CHF bn

Q4/01

616

-830

6.6%

0.52

-

17.9

12.01

1,425.5

Change fromQ3/01 2000

- -45%

- -73%

- -49%

- -

+152% +14%

Change from09.01 12.00

10.5% 2.4%

12M/01

3,974

1,587

10.0%

3.33

2.00

66.4

12.00

1,392.0* excl. amortization of acquired intangible assets and goodwill as well as exceptional items, net of tax

OVERVIEW 2001 RESULTS

§ CSFS, CSPB, and CSAM posting strong results given market conditions, with net operating profit of CHF 4.0 bn (2000: CHF 4.8 bn)

§ CSFS: - Insurance businesses down 18%, better technical results, lowerinvestment returns

- CSB down 4% on lower transaction volumes- CSPF launched in Germany and Spain in Q4

§ CSPB: CHF 33 bn NNA, 7.2% growth; operating return on AuM 50 bp

§ CSAM: CHF 9.2 bn NNA; operating return on AuM 6.7 bp

§ CSFB: - 2001 net operating profit of CHF 571 m; revenues affected by weakmarkets, post-acquisition cost structure, and exceptional items

- Reduced headcount by 2,500+ in Q4; bonus per capita down 49%

marketmovements& structural

effects

acquisitionsCSFS

CSFBCSAM

CSPB1,392.0

33.0

7.9

9.216.3

32.7

65.61,425.5

in CHF billion

AuM 12/00 AuM 12/01

GROWTH IN ASSETS UNDER MANAGEMENT

§ Net inflows of CHF 17.9 bn in Q4, up on seasonally weak Q3

§ CHF 32.7 bn from acquisitions, net of sale of Winterthur International

CHF 66.4 (+4.8% p.a.)

net new assets

19%14%19% 17% 14%

11%28%16%

28%

22%

51%

44%50%

41%

43%

19%

14%15%

14%

22%

Q4/00 Q1/01 Q2/01 Q3/01 Q4/01

in CHF m *

8,720

11,182

REVENUE§ Revenue drop reflects weaker result at CSFB (fixed income, Argentina, Enron)§ Net interest income from trading portfolio down, trading line also affected by

lower market volatilities

Insurance + 21%

Trading - 54%

Change vs.Q3 2001

Balance sheet - 20%business

Fees & + 9%commissions

8,161

10,63111,091

* totals include other income

Total - 6%

406 483 502 502 699

2,308 1,954 2,214 1,954 2,272

(2,017) (2,780) (2,552)(1,944) (724)

(181)(194)

(221)(189)

(209)

6,0305,154 5,276

4,625

5,959

Q4/00 Q1/01 Q2/01 Q3/01 Q4/01

in CHF m

Depreciation * + 39%

Other op. exp. + 16%

Change vs.Q3 2001

Personnel - 12%expenses

(retention pmts.)

(w/o bonuses) - 63%

7,732

OPERATING EXPENSES

8,675

§ Cost / income ratio * of 93.1% (Q3/01: 88.7%), reflecting exceptional items§ Non-personnel expenses up largely on acceleration of 3rd party fees and

depreciation of capitalized IT

7,5967,8688,467

* excl. amortization of acquired intangible assets and goodwill

Total - 2%

EXCEPTIONAL ITEMS IN Q4

Operating incomePersonnel expensesDepreciation of non-current assetsValuation adj., provisions & lossesTotal, pre-taxTaxesTotal, net of tax

n.b.Bonus over-accrual in 9M/01

in USD m

-20-583

-7-235-845199

-646

340

FX rate@ 1.69 in CHF m

-34-985

-12-397

-1,428336

-1,092

575

CONSOLIDATED INCOME STATEMENT

Operating incomeOperating expensesGross operating profitDepreciation of non-current assetsValuation adj., provisions & lossesProfit before e.o. items & taxese.o. items, netTaxesNet profit before minority interestsNet profit

Q4/01CHF m

8,161-6,8971,264

-1,126-1,289-1,151

-257538

-870-830

Q3/01CHF m

8,720-7,2301,490-889-653-52

6-117-163-299

Changeto Q3/01

-6%-5%

-15%27%97%

-----

Q4/00CHF m

10,632-7,4623,170-667-425

2,078-1,558

139659590

RECONCILIATION TO NET OPERATING PROFIT

Net profit

Amort. of acquired intangible assetstax effect

Amortization of goodwill

Exceptional items / restructuringtax effect

Net operating profit

Q4/01CHF m

-830

203-73

224

1,428-336

616

Q3/01CHF m

-299

197-67

190

--

21

Changeto Q3/01

-

3%9%

18%

--

-

Q4/00CHF m

590

157-44

103

1,499-425

1,880

ASSET QUALITY CAPITAL EXPOSURE & PROVISION DEVELOPMENT

12,105 10,9648,347 7,926 7,072 6,270 5,918

1,9041,887

1,479 1,804 2,668 2,895 3,748

YE 98 YE 99 YE 00 03/01 06/01 09/01 YE 01

CSFB

CSB &CSPB

Non-performing loans (NPLs) *, in CHF m

* includes loans and loan equivalents

NPLs as%age ofcredit exp. * 4.1% 3.4% 2.4% 2.3% 2.3% 2.2% 2.4%

Coverageratio of NPLs 63% 63% 63% 62% 60% 56% 59%

CSFBin USD1,484

CSFBin USD1,792

CSFBin USD2,237

5%

13% 16% 16% 14% 15% 14%

38%

43% 44% 43% 45% 44% 43%

4%4%5%5%6%

37%36%36%35%38%

YE 99 YE 00 03/01 06/01 09/01 YE 01

TOTAL COUNTERPARTY EXPOSUREBY RATING

R5 - R7 or N/R(non-investment grade)

R4(BBB)

R1 - R3(AAA - A)

R8(impaired / non-performing)

in CHF bn418431423405373 400

CREDIT SUMMARY

§ Continued improvement in NPLs at CSB

§ Clear deterioration in CSFB's loan and exposure book

2001 credit costs / total counterparty exposure (in basis points)

3870

38

1820

Q1 Q2 Q3 Q4CSG cons.

full year rate18 1717

2410

Q1 Q2 Q3 Q4CS & IPB LEs

52

109

53

1526

Q1 Q2 Q3 Q4CSFB LE

CAPITAL ADEQUACY - CREDIT SUISSE GROUP

06.01

25,97022,151

261,550256,317

9.9%8.6%

03.01

25,69921,795

250,392245,074

10.3%8.9%

12.00

27,11120,999

239,465231,939

11.3%9.1%

09.01

21,32519,771

237,347234,379

9.0%8.4%

in CHF m

BIS tier 1 capital, consolidatedBIS tier 1 capital, bankingBIS RWA, consolidatedBIS RWA, banking

BIS tier 1 ratio, consolidatedBIS tier 1 ratio, banking

Insurance solvency(proxy calculation estimatebased on EU approach)

12.01

21,15519,402

222,874219,707

9.5%8.8%

155%

CREDIT SUISSE FINANCIAL SERVICESHIGHLIGHTS Q4 AND 2001

§ Q4 net operating profit CHF 206 m in Q4 (CHF 303 m excl. CSPF),down 8% on Q3, largely due toØ Transaction-related charges for divestment W'Intl.Ø Lower investment return at WLP

§ 2001 net operating profit CHF 1.4 bn (CHF 1.7 bn excl. CSPF),down 24% on 2000, in view ofØ Lower investment return from insurance unitsØ Continued investments in CSPF

§ 2001 costs Affected byØ accounting changes (CHF 267 m)Ø net effects of insurance acquisitions (CHF 205 m)Ø partially offset by non-organic premium growth

§ Operating ROE / ROIC 12.9%, or 16.5% excluding CSPF

§ AuM Ø Flat at CHF 274.2 bnØ CHF 7.9 bn NNA (CHF 3.3 bn in Q4)

WINTERTHUR INSURANCEHIGHLIGHTS 2001

§ Premiums Up 12% to CHF 18.4 bn, 11% organic growth

§ Net operating profit CHF 536 m, down 28% on 2000, combination ofØ Improved combined ratio of 105.6% (down 0.9 points)

- 76.7% claims ratio, down 0.5 points on furtherimprovement in Europe, partially offset by weakerN-America result

- 28.9% expense ratio, down 0.4 points on expense controlØ Lower investment return of 6.9% (4.6% current, 2.3%

realized gains) in view of market conditions (7.5% in 2000)Ø Transaction-related charges for divestment of W'Intl.

§ Progress update Continued progress in strategic focus, exitingunderperforming marketsØ Completion of acquisition of CGNU business in BelgiumØ Winterthur International divestedØ Announced sale of branches in France and Austrian subs.

WINTERTHUR LIFE & PENSIONSHIGHLIGHTS 2001

§ Premiums Up 13% to CHF 17.4 bnØ 10% organic growthØ Premiums ex-Switzerland above 50% for the first time

§ Net operating profit CHF 578 m, down only 5% on 2000, combination ofØ Improved expense ratio of 10.9% (down 0.2 points)Ø Lower investment return of 4.8% (4.3% current, 0.5%

realized gains) in view of market conditions (6.9% in 2000)Ø Solid performance in all core markets

§ Net new assets CHF 3.9 bn vs. CHF 2.7 bn for 2000

§ Progress update Strategic focus on profitable growthØ Acquisition of largest Czech pension fundØ Announced withdrawal from French and Austrian markets

CREDIT SUISSE BANKINGHIGHLIGHTS Q4 AND 2001

§ Q4 net operating profit CHF 114 m, down 25% vs. Q3, largely due todepreciation of capitalized ITØ Operating income stable, 233 bp net interest marginØ Operating expense down (personnel cost -14%)

§ Operating ROE 10.5% in Q4; 14.5% for full year

§ 2001 net operating profit CHF 632 m, down 4%decrease in credit provisioning offset by lower feeincome and higher depreciation

§ Net new assets Ø CHF 1.5 bn in Q4 and CHF 2.8 bn for 2001;Ø Growth in funds business of 3% in 2001,

outperforming the market

§ NPLs Decreased to 4.5% of total exposureØ Down 2 %age points, or CHF 2.4 bn on continued

progress in workout portfolioØ NPL coverage ratio at 59%

CREDIT SUISSE PERSONAL FINANCEHIGHLIGHTS Q4 AND 2001

CSPF reporting format includes European onshore affluent offering aswell as youtrade

§ Progress update Operations further expanded(launches in Spain and Germany)Ø Around 600 financial advisorsØ 35 locations in Italy, 18 in Spain, 10 in GermanyØ Italian platform important in capturing repatriated

money

§ Established areas Continued growth, AuM at CHF 6.6 bnØ +10% vs. 09/01Ø Net new assets of CHF 0.5 bn in Q4 (CHF 1.2 bn for

the year)

§ Q4 net operating loss CHF 97 m (full year: CHF 383 m) reflectingcontinued investments

CREDIT SUISSE PRIVATE BANKINGHIGHLIGHTS Q4 AND 2001

§ Net new assets Ø CHF 7.5 bn in Q4 (CHF 33.0 bn for the year)Ø Growth of 1.7% for the quarter, or 7.2% for

2001, mainly due to new product launches

§ Q4 net operating profit CHF 602 m, up 17% vs. Q3Ø Revenues up 3% vs. Q3Ø Expenses stable (up 1% q-on-q)

§ Margins Q4 gross and net margin: 120 bp and 53 bp resp.(up vs. Q3); 124 bp and 50 bp resp. for full year

§ 2001 net operating profit Down only 11% at CHF 2.3 bn, despite negativemarket environment and significantly lowertransaction volumes vs. 2000

§ Strategic progress Ø Launch of Global Private Banking Centre in SingaporeØ Award for "Best Use of IT in the Banking Sector" for

introduction of FrontNet relationship mgmt. PortalØ 3rd time "Best Private Bank in Asia"

CREDIT SUISSE PRIVATE BANKINGDEVELOPMENT OF GROSS MARGIN

64 65 67 64 67 66

47 45 4132 31 37

22 2717

18 22 21

0

30

60

90

120

2000 Q1/01 Q2/01 Q3/01 Q4/01 2001

114

133 137124125

Other revenueTransaction drivenAsset driven

in bp

alternative investments ìbrokerage îtrading î

alternative investments ì

-9 bp

120

CSFS BUSINESS MODEL AS OF 2002

Private BankingInternational

Private BankingSwitzerland Finance

& Products

Life & Pensions

Invest-ment

Mgmt.

Technology & Operations

Corporate &Retail Banking

Insurance

p Client reservoir, key for home market position (image, regulatory environment, leverage of cost base)

p Attractive businesses in their own right (ROE significantly above capital cost, stable)

Client segmentsDistribution Products

Infrastructure

§ UHNWI

§ HNWI

§ Affluents

§ Retail clients

§ Small businesses

§ Medium-sized corporates

Core private banking / wealth management

franchise

NEW CSFS - SYNERGIES / COST IMPROVEMENTS§ Need to adapt cost structure to reflect changing market conditions, by

s Bringing together retail and private banking platformss Down-sizing staff and support functionss Consolidating IT, operations and e-business infrastructure

Gross synergies/cost improvements (in CHF m)

P Reduction of 700-800 positions

Key measures and levers

350-400

600-650

2002 2003onwards

Headcount reduction

G&A cost savings and improvements

Revenue increase

70%

60%

15% 15%

15%

25%P Eliminate overlaps

P Enhance revenues, e.g. CH affluents

P Streamline e-business initiatives

P Reduce external costs

P Improve marketing effectiveness

CREDIT SUISSE FIRST BOSTONHIGHLIGHTS Q4 AND 2001 1/2

§ Q4 net operating loss USD 196 m,compared with USD 123 m loss for Q3

§ Q4 revenue declined 23% to USD 2.5 bn:Ø FI down 44%, Argentina and Enron losses Ø Equity revenues up 5%, IB flat (-1%), FS up 6%

§ Q4 operating expenses USD 2 bn down 32% on Q3 due toØ Lower personnel costs and incentive comp.Ø USD 340 m incentive compensation classified as

exceptional item

§ Higher credit provisions USD 370 m vs. USD 348 m for first 9 months

CREDIT SUISSE FIRST BOSTONHIGHLIGHTS Q4 AND 2001 2/2

§ Exceptional items USD 845 m pre-tax (USD 646 m net of tax)Ø USD 745 m cost reduction initiativeØ USD 100 m settlement with SEC and NASDR re

IPO allegations

§ 2001 net operating profit USD 338 m vs. USD 1.6 bn in 2000Ø Revenue up 14% to USD 14 bn, FI almost

doubled to USD 5.7 bnØ Equity down 23%, IB down 25%Ø Rankings / market shares broadly maintained

§ 2001 loss USD 961 m after USD 646 m exceptionalitems and USD 653 m amortization of acquired intangible assets and goodwill

CREDIT SUISSE FIRST BOSTONKEY MARKET SHARE FIGURES

RA = ranked analysts* 2000 rankings include DLJ for full year

Global M&A

Global Equity

Global Debt

High Yield

Equity researchAll AmericaEurope

2001 2000 * 1997

Rank

3

4

4

1

14

Share

25.2%

8.8%

9.1%

21.0%

56 RA26 RA

Gap to 3

none

1.7%

0.5%

none

none10 RA

Rank

4

5

3

1

21

Share

22.6%

10.0%

8.4%

16.4%

52 RA41 RA

Gap to 3

3.8%

1.5%

none

none

nonenone

Rank

5

5

7

10

1012

Share

12.3%

4.9%

5.4%

4.0%

13 RA8 RA

Gap to 3

6.2%

7.3%

3.2%

7.3%

26 RA26 RA

CREDIT SUISSE FIRST BOSTONHEADCOUNT

Investment Banking 2,664 4,553 2,965Equity 2,602 3,732 2,814Fixed Income 1,726 2,543 3,128PCS - 971 1,037Private Equity 73 350 341Other 37 221 13Total Front 7,102 12,370 10,298 10,271 - 17% + 45%Financial Services - 6,540 4,776 4,929 - 27% +++IT 3,259 4,218 3,902 3,897 - 7% + 20%Operations 2,269 2,635 2,223 2,248 - 16% - 2%Finance & Risk 2,107 2,445 1,880 1,861 - 23% - 11%Administration 1,761 2,327 2,073 2,124 - 11% + 18%Total Back 9,396 11,625 10,078 10,130 - 13% + 7%

CSFB TOTAL 16,498 30,535 25,152 25,330 - 18% + 52%

pro-forma 31 Dec. Target 31 Dec. 31 Dec.pre-merger 09.2000 2001 12.2001 vs. vs.

pro-forma pre-merger

> 5,000 (18%)reduction

CREDIT SUISSE FIRST BOSTONUPDATE ON COST REDUCTION PROGRAM

§ USD 1 bn cost reduction program announced Sept. 2001 – actions already taken will exceed this target

§ Headcount reduced by 2,500+ (Sept-Dec ’01) while preserving the franchise – annual savings will exceed USD 700 m

§ Other operating expense savings to exceed USD 300 m

§ Non-core businesses (CSFBdirect in US and UK, Autranet) sold for USD 660 m, run-rate relief of approx. USD 64 m (revenues 2001 were USD 151 m, operating expenses 2001 were USD 215 m)

§ Further focus on costs and staffing levels in 2002, in light of market conditions and outlook

CREDIT SUISSE FIRST BOSTONNEW MANAGEMENT STRUCTURE

OPERATINGCOMMITTEE (12)

Mack*, Carter**, Dougan, James, Lynch*, Murray*, Nides*, Ogunlesi**, Peek*,Sants**, Thornburgh, Volk*

* New to CSFB since mid-2001 (6)** Internal promotes / new to Operating Committee (3)

EXECUTIVEBOARD (27)

Mack*, Carter**, Dougan, James, Lynch*, Murray*, Nides*, Ogunlesi**, Peek*,Sants**, Thornburgh, Volk*, Brueckner**, Calello, Clark**, Cruz**, Dimaio**, Goodman, Healy, Jackson**, Meltzer**, Price, Quattrone**, Roby, Salzman*,Schloss**, Stonefield.

* New to CSFB since mid-2001 (7)** Internal promotes / new to ExB (11)

CREDIT SUISSE ASSET MANAGEMENTHIGHLIGHTS Q4 AND 2001

§ Revenue Q4 up 21% vs. Q3, 2001 revenue 9%down on pro-forma 2000 adjusted for DLJ

§ Expenses Q4 down 4% vs. Q3, 2001 down 11%on pro-forma 2000 adjusted for DLJ

§ Net operating profit CHF 139 m in Q4, CHF 322 m for 2001,down 5% vs. 2000; due to extraordinaryexpense re DLJ integration and higher tax

§ AuM Q4 CHF 1.9 bn net new discretionaryassets, CHF 9.2 bn in 2001

§ Operating return on AuM 11.9 bp in Q4, 6.7 bp for 2001

§ Acquisition of SLC Asset Management Group in UK

PRIORITIES / OUTLOOK

§ Focus for 2002s Deliver on cost initiatives across Groups Leaner and more flexible cost structure at CSFB to achieve

satisfactory results in unfavorable markets; position for upsides Implement new CSFS structure, maintain growth momentum

§ Revenue levels for 2002 at CSFB expected to be lower than in 2001

§ For CSFS 2002 results are unlikely to exceed 2001

§ Remain confident about long-term positive trends for financial services industry

§ CSG strategically well positioned with improved cost structure

CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION

This presentation may contain projections or other forward-looking statements related to Credit Suisse Group that involve risks anduncertainties. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by Credit Suisse Group with the SEC, specifically the most recent filing on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to market fluctuations and volatility, significant interest rate changes, credit exposures, cross border transactions and foreign exchange fluctuations, impaired liquidity, competition and legal liability. All forward-looking statements are based on information available to Credit Suisse Group on the date of its posting and Credit Suisse Group assumes no obligation to update such statements unless otherwise required by applicable law.

credit-suisse slides - presentation to analysts and media

Economy & Finance

chf bn

net profit of chf

net operating profit

net inflows of chf

chf m8

managementin chf

loss of chf

q4 net operating profit