Results for Full-year 2019

Presentation to analysts and investors

March 2020
Contents

Sections
1 Highlights 3
2 Business review: Global Advisory 9
3 Business review: Wealth & Asset Management 15
4 Business review: Merchant Banking 19
5 Financials 25
6 Targets and outlook 31

Appendices 33
 1
Highlights
1. Highlights

Highlights
Good results in challenging markets

⚫ Global Advisory (GA): resilient M&A advisory with a record Q4, 7th by revenue and 2nd by number globally
⚫ Wealth & Asset Management (WAM): 17% increase of AuM (from €64.8bn to €76.0bn) thanks to solid NNA in
Key
Wealth Management and favourable financial markets
achievements
⚫ Merchant Banking (MB): strong growth of 27% of AuM and continuing to deliver significant profit contribution
(+9% y-o-y)

⚫ Group revenue: €1,872m, down 5% (2018: €1,976m)

⚫ Net income - Group share excl. exceptionals: €233m, down 23% (2018: €303m)
Results ⚫ Earnings per share excl. exceptionals: €3.24, down 21% (2018: €4.10)
⚫ Negative impact y-o-y of €34m on staff costs relating to deferred bonus accounting (2019: charge of €4m
versus a credit of €30m in 2018)

⚫ GA: ongoing investment in North America and acquisition of Arrowpoint, focusing on UK mid-market segment
Strategy on ⚫ WAM : first collaboration across the WAM businesses to increase synergies
track ⚫ MB: active fundraising, notably with the launching of Five Arrows Debt Partners II (FADP II) and Five Arrows
Global Loan Investments (GLI)

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1. Highlights

Group revenue
Increasing revenue in WAM and MB; GA revenue decline as anticipated
Group revenue (in €m)

CAGR 15-19:
+6% -5%
1,976
1,910 1,872
9%
1,713 +13% 11%
10%

1,507 8%
24%
25% +3% 27%
8% 19%

23%

64%
-9%
68% 62% 62%
63%

2015 2016 2017 2018 2019

Global Advisory Wealth & Asset Management Merchant Banking Other

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1. Highlights

Group EPS
Leverage effect of lower revenue impacting EPS
EPS excluding exceptionals (in €) EPS (in €m) Average number
of shares – 000s

68,586
2015/16 1.95 3.37

68,672
2016 2.66 2.60

3.33 3.18 74,180

2017

3.88 73,388
2018 4.10

-21% -13%
3.38 71,340
2019 3.24

Note
1 Average number of shares decreasing as a consequence of the share buy back as part of Edmond de Rothschild deal in August 2018

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1. Highlights

Dividend
In line with our progressive dividend policy, increase of 8%
Dividend progression over 5 years

+35%
since 2016

+8%

€0.85
€0.79
€0.68 €0.72
€0.63

2015/16 2016/17 2017 2018 2019

Payout
ratio 1, 2 32% 26% 22% 19% 26%

Notes
1 In 2017, €0.72 was the pro forma equivalent dividend on a full year basis, in relation to the shorter financial year of 2017 following the change of year end from March to
December
2 Payout ratio is calculated excluding exceptional items

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 2
Business review: Global
Advisory
2. Business review: Global Advisory

Global Advisory
Global M&A market by values
4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

-
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Announced Deal Value ($bn) Completed Deal Value ($bn)

16 vs 15 17 vs 16 18 vs 17 19 vs 18
% var Announced (17)% (4)% 19% (3)%
% var Completed (0)% (8)% 15% (14)%

Source: Refinitiv
Note: 2019 announced value includes 3 US domestic deals >$80bn with a cumulative value of $267bn (Bristol-Myers Sqibb / Celgene, United Technologies / Raytheon and AbbVie / Allergan (vs none in 2018)

10
Public
2. Business review: Global Advisory

Global Advisory
Revenue outperforming M&A markets, with record revenue in Q4 of €394m (+16% QoQ)
Revenue by product (in €m)

CAGR 15-19:
+5% -9%

1,271
1,171 1,183 1,160
26%
24% -14% 25%
947 32%

29%

-7%
76% 74%
75%
68%
71%

2015 2016 2017 2018 2019

M&A Advisory Financing Advisory

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2. Business review: Global Advisory

Global Advisory
Maintaining a very strong position by revenue and number of deals
Ranking by advisory revenue (in €m) – 12m to December 2019
Ranking by % of Total
# deals revenue

Goldman Sachs 2,855 1 9%

JP Morgan 2,123 3 2%

Morgan Stanley 1,894

4 5%

Evercore 1,479
10 80%

Lazard 1,213
5 53%

BoA / Merrill Lynch 1,196

7 1%

1,160 2 62%

Citigroup 1,124 6 2%

Houlihan Lokey 1,026

20 100%

Barclays 885
8 4%

2019 2018

Source: Company’s filings, Thomson Reuters, global ranking by # of deals based on completed transactions

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 2. Business review: Global Advisory

Global Advisory
Profitability compressed by several factors
Profit Before Tax (in €m) and PBT margin - pre US investment costs1
350 40.0%

300
35.0%Main reasons for profit
255 compression
-29% ⚫ Revenue down by 9%
250
212 30.0%⚫ Ongoing strategic
211
investment in North
200 182 America despite an
25.0% unfavourable mid-
market M&A and
150 significantly lower
restructuring market
20.0%
100 20% ⚫ Poor market
conditions in China
18% 18%
15.0%⚫ Increase in Non
50 16% personnel costs in
line with the market
- 10.0%
2016 2017 2018 2019

PBT excluding US investments costs % PBT margin excl. US investments

Compensation
ratio2
65.6% 65.0% 63.4% 64.9%
Note
1 US investment costs were €23m in 2016, €25m in 2017, €22m 2018 and €16m in 2019. Our US investment costs are expected to be around 2% of revenue subject to the right opportunities
2 On an awarded basis

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2. Business review: Global Advisory

Update on our North America development

Overview Broadening sector coverage

6 offices Debt
Activism
Restructuring

New York, Washington and Toronto and more recently Los Metals &
Advisory Mining
Angeles (2014), Chicago (2016) and Palo Alto (2018)
Technology Financial
Sponsors
FIG / Asset Established presence Equity
c.200 40 Management
Enhanced since 2016
Advisory
advisory bankers MDs
Retail Initiated since 2016 Consumer
Enhanced in 2019
Industrials
30 5 Healthcare

new M&A MDs since 2014 new MDs in 2019 Infrastructure Telecoms
& Power Business
Chemicals Paper & Services
Our North American progression1 Packaging

Var Market
2014 2019
14-19 % change

Deal value $43bn $56bn 30% 23%

Objective to build a
comprehensive platform
Deal number 76 115 51% 14%
in North America
League table position consistent with our overall global franchise
#19 #14 36%
(# of Announced deals)

Source: Refinitiv, any US or Canadian involvement on announced transactions

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 3
Business review: Wealth &
Asset Management

4
3. Business Review: Wealth & Asset Management

Wealth & Asset Management

Strong increase in AuM thanks to high level of net new assets and very positive market conditions
Assets under management (in €bn)

+17%

8.8 76.0

67.3 2.4 ​
64.8 ​​ ​
33%
54.0
51.0 37% 34%

WM: €2.5bn
41% AM: (€0.1)bn
40%

67%
63% 66%
60% 59%

31 Dec 31 Dec 31 Dec 31 Dec Net Market and 31 Dec

2015 2016 2017 2018 New FX effect 2019
Assets

Wealth Management Asset Management

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 3. Business Review: Wealth & Asset Management

Wealth & Asset Management

Positive revenue trend despite being penalised by low interest rate environment
Revenue1,2 (in €m)
800 350

700 CAGR 17-19:

300
+3%
Asset
600 +3% Management
250 22%
+2% 497
500 470 480
21
20 20 200
Wealth
Management
400
78%
150
300
+3% 380
+6% 404
370
100 RoW
200 72 73 71 19%

France
50 UK 47%
100 17%
-
-10%
80 80 72
- - Sw itzerland
2017 2018 2019 17%

NII Fees and commissions Others Revenue bps margin

Note
1 Revenues are calculated excluding Trust business following its sale in February 2019
2 France includes France, Belgium and Monaco

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 3. Business Review: Wealth & Asset Management

Wealth & Asset Management

Margin contraction due to low interest rate environment and higher costs
Profit Before Tax (in €m) and PBT margin Target change

170 Excluding Martin Maurel integration costs 70.0%

150 Before Updated to:
60.0%
130 Around 20% Around 20%
50.0%
110 85 by 2020 by 2022
90 73 40.0%
70 30.0%
50 18% 15% 20.0% Rationale for change
30
10 10.0%
⚫ Impact of structurally low or even negative interest
(10) - rates environment, set to last for the foreseeable
2018 2019
future
PBT excl. Martin Maurel costs % PBT margin
200 70.0%⚫ Cost to integrate Martin Maurel higher than
180 Including Martin Maurel integration costs expected
60.0%
160 ⚫ Need of an increase investment in digital,
140 50.0% automation and technology
-5%
120 40.0%⚫ Higher regulatory costs due to tighter industry
100 controls
76 73 30.0%
80
60 16% 15% 20.0%
40 Roadmap to reach the updated target
10.0%⚫ Continued strong NNA from new clients assuming a
20
0 - stable market environment
2018 2019 ⚫ Benefiting from Martin Maurel synergies
PBT incl. Martin Maurel costs % PBT margin
⚫ Tight cost management

Note
1 PBT calculated excluding Trust business following its sale in February 2019

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 4
Business review: Merchant
Banking

5
4. Business review: Merchant Banking

Merchant Banking
Continuing strong growth of AuM thanks to launch of new funds
Assets under Management (in €bn)

Private
Equity
25%
Credit
14.0 Management
CAGR 15-19: +27% 47%
Secondaries
+29% / Co-
Direct investments
11.1 Lending 19%
9%

8.3
91%
5.8
91%
5.0
90%
88%
86%

14% 12% 10% 9% 9%

31 Dec 31 Dec 31 Dec 31 Dec 31 Dec

2015 2016 2017 2018 2019
Group Third party
Note
1 At the beginning of 2018, Merchant Banking decided to update its definition of Assets under Management (AuM) to align it with generally accepted industry practices. AuM are
now calculated on the basis of the funds’ Net Asset Value plus all investors’ undrawn/callable capital commitments, according to the rules specified in the funds’ prospectus

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4. Business review: Merchant Banking

Merchant Banking
Continuing value creation in portfolio for Rothschild & Co shareholders
Change in net asset value of the Group’s investment (in €m)

84
9 (22)
126 75
(82) 617
52

511 74 (104) 179

140

438
371

Asset value Additions Value creation Disposals Asset value

31/12/2018 31/12/2019

Private Equity Private Debt

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 4. Business review: Merchant Banking

Merchant Banking
Strong revenue growth driven by increasing recurring revenue stream
Revenue (in €m)

300

250
CAGR 16-19:
250
+14% +13%
197
200
185
175 200
186
164
150 58
133 145 -15%
150
131
69
100 93 +32% 48
53 100
36 91
31
29 70 % Recurring /
50 61 +31% total50revenue :
51 46%
38%

0 -
2016 2017 2018 2019
Recurring Revenue Carried interest Gains (realised and unrealised) Revenue - average 3 years

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 4. Business review: Merchant Banking

Merchant Banking
High level of profits and return on adjusted capital
Profit Before Tax (in €m) and RORAC1

200 250.0%

180 CAGR 16-19:

+11%
160 200.0%

140
+9%
120
120 111 150.0%
102
100
82
80 100.0%

60

40 62% 65% 50.0%

58% 56%
20

0 -
2016 2017 2018 2019

Profit before tax PBT margin

3 year average
RORAC 1
25% 26% 28% 28%

Note
1 RORAC stands for Return On Risk Adjusted Capital – an internal measure of risk capital invested in the business, being profit before tax divided by risk weighted capital

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 5
Financials

9
5. Financial review

Summary consolidated P&L

(in €m) 2019 2018 Var Var % FX effects

Revenue 1,872 1,976 (104) (5)% 23
Staff costs (1,065) (1,098) 33 (3)% (17)
Administrative expenses (289) (309) 20 (6)% (4)
Depreciation and amortisation (66) (30) (36) 120% (1)
Impairments (6) (4) (2) 50% 0
Operating Income 446 535 (89) (17)% 1
Other income / (expense) (net) 19 (4) 23 N/A 0
Profit before tax 465 531 (66) (12)% 1
Income tax (68) (77) 9 (12)% 0
Consolidated net income 397 454 (57) (13)% 1
Non-controlling interests (154) (168) 14 (8)% 0
Net income - Group share 243 286 (43) (15)% 0
Adjustments for exceptionals (10) 17 (27) (159)% 0
Net income - Group share excl.
233 303 (70) (23)% 0
exceptionals

1
Earnings per share 3.38 € 3.88 € (0.50) € (13)%
EPS excl. exceptionals 3.24 € 4.10 € (0.86) € (21)%
Return On Tangible Equity (ROTE) 13.2% 17.0%
ROTE excl. exceptionals 12.6% 18.0%
Note
1 Diluted EPS is €3.35 for 2019 (2018: €3.82)

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5. Financial review

“Exceptionals” reconciliation

(in €m) 2019 2018

PBT PATMI EPS PBT PATMI EPS

As reported 465 243 3.38 € 531 286 3.88 €

- Net profit on legacy assets (18) (10) (0.14) € - - -

- Martin Maurel integration costs - - - 9 7 0.09 €

- Trust impairment provision - - - 5 5 0.07 €

- Guaranteed minimum pension provision - - - 6 5 0.06 €

Total Exceptional Costs / (Gains) (18) (10) (0.14) € 20 17 0.22 €

Excluding exceptional 447 233 3.24 € 551 303 4.10 €

⚫ Exceptional items in 2019 comprise net gains on property transactions and on legacy assets including the
sale of the Trust business in February 2019
⚫ Exceptionals items in 2019 are all included in “Other income / (expense)” in the P&L
⚫ The Group has decided to move to a new IT infrastructure supplier. This will result in a one-off transition and
transformation charge of around €15 million in 2020

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5. Financial review

Performance by business
Global Wealth & Asset Merchant Corporate IFRS
(in €m) 2019
Advisory Management Banking centre reconciliation 1

Revenue 1,160 497 197 24 (6) 1,872

Operating expenses (994) (426) (86) (53) 139 (1,420)
Impairments - 2 - - (8) (6)
Operating income 166 73 111 (29) 125 446
Other income / (expense) - - - - 19 19
Profit before tax 166 73 111 (29) 144 465
Exceptional profits - - - - (18) (18)

PBT excluding exceptional charges / profits 166 73 111 (29) 126 447

Operating margin % 14% 15% 56% - - 24%

Global Wealth & Asset Merchant Corporate IFRS

(in €m) 2018
Advisory Management Banking centre reconciliation 1

Revenue 1,271 480 175 58 (8) 1,976

Operating expenses (1,038) (408) (73) (92) 174 (1,437)
Impairments - 4 - - (8) (4)
Operating income 233 76 102 (34) 158 535
Other income / (expense) - - - - (4) (4)
Profit before tax 233 76 102 (34) 154 531
Exceptional charges - 9 - - 11 20

PBT excluding exceptional charges / profits 233 85 102 (34) 165 551

Operating margin % 18% 18% 58% - - 28%

Note
1 The reconciliation to IFRS mainly reflects: the treatment of profit share paid to French partners as non-controlling interests; accounting for deferred bonuses over the period that they are earned; the application of IAS 19
for defined benefit pension schemes; adding back non-operating gains and losses booked in "net income/(expense) from other assets"; removing realised gains on sales of investment securities where the unrealised
gain was in the available-for-sale reserve at 31 December 2017 before the introduction on IFRS 9; and reallocating impairments and certain operating income and expenses for presentational purposes.

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5. Financial review

Compensation ratio

(in €m) 2019 2018

Revenue 1,872 1,976

Total staff costs1 (1,176) (1,225)
Compensation ratio 62.8% 62.0%
variation due to FX (0.2)% 0.2%
2
variation due to UK Guaranteed minimum pension provision - (0.3)%

variation due to GA US investment costs 3 (0.8)% (1.1)%

Adjusted accounting Compensation ratio (INCLUDING deferred
bonus accounting)
61.8% 60.8%

variation due to deferred bonus accounting (0.2)% 1.5%

Adjusted awarded Compensation ratio 61.6% 62.3%
(EXCLUDING deferred bonus accounting)

Headcount 3,559 3,633

Notes
1 Total staff costs include profit share paid to French Partners and effects of accounting for deferred bonuses over the period in which they are earned, as opposed to
“awarded” basis but exclude redundancy costs, revaluation of share-based employee liabilities and acquisition costs treated as employee compensation under IFRS
2 UK Guaranteed minimum pension provision related to a provision estimated by actuaries to cover inequality of treatment between men and women
3 GA US investment costs are defined as compensation earned in respect of the first 12 month period of employment plus any make-wholes payable in the reporting period

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5. Financial review

Solvency ratios comfortably above minimum requirements

Risk weighted assets and ratios under full application of Basel 3 rules
Risk weighted assets (in €m) Group solvency ratio1

9,069

7,997
20.4%
19.5%
3,307
20.4%
19.5%
3,310
230

Capital ratio min:

342 10.5%

CET 1 w ith
5,532 buffer min: 7%
4,345

31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019

Credit risk Market risk Operational risk CET 1 / Tier 1 ratio Tier 2

⚫ Credit RWA’s increased due to the first application of IFRS 16 since January 2019, new Merchant Banking
commitments, treasury investments and increase of the loan book
Note
1 The ratio submitted to ACPR as at 31 December 2019 was 18.5%, which excludes the profit of the second half of the year as non-audited at the time of the transmission

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 6
Targets and outlook
6. Financial targets and Outlook

Financial targets and Outlook

Target 2019 2018 Outlook

Low to mid 60’s

Compensation 61.8% 60.8% ⚫ Committed to delivering on our financial targets and
through the
ratio1 creating further value through synergies across all
cycle
Group businesses to generate good returns for our shareholders
10 to 15% over the long term
Return on
through the 12.6% 18.0% ⚫ Mindful of how quickly events can change (ie. Covid-19)
tangible equity2
cycle

Global Mid to high- ⚫ Current visible pipeline healthy across the business and
Advisory: teens above levels at the same point last year
16% 20%
Profit before through the ⚫ Recent market correction gives rise for concern, but too
tax margin3 cycle early to determine impact on activity levels

Wealth & Asset ⚫ Healthy uptick in client activity

Management: Around 20% ⚫ Still impacted by low and negative interest rates
Business Profit before 15% 16% ⚫ High volatility in financial markets currently which could
by 2022
tax margin4 create headwinds and impact our business

Merchant ⚫ Continue to grow AuM and to focus on deployment of funds

Banking: Above 15%
⚫ Portfolios’ performance remains strong
3 years average through the 28% 28%
⚫ Committed to capital preservation with an equal focus on
RORAC5 cycle
risk and return

Notes
1 As adjusted including deferred bonus accounting– see slide 29
2 ROTE based on Net income – Group share excl. exceptionals items. Would be 13.2% if exceptionals included (2018: 17.0%). See definition on slide 39 and calculation on slide 40
3 GA PBT margin pre-US investments. Would be 14.3% if US investments included (2018: 18.4%)
4 WAM PBT is presented excluding the Trust business following the sale in February 2019
5 See definition on slide 39 and calculation on slide 40

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2. Business lines

Appendices

8
Corporate Responsibility – an ambitious roadmap
Encouraging a culture of responsible business

Business practices People Responsible Environment Community

investment investment

⚫ Safeguarding ⚫ Talent development ⚫ ESG integration in ⚫ Championing ⚫ Financial support to

confidentiality opportunities and investment decisions responsible charities, social
assignments to to create long-term consumption and enterprises and
⚫ Effective compliance support career resource use individuals
value for investors
systems and
technology ⚫ Balanced approach to ⚫ Engagement policy ⚫ Responsibly ⚫ Professional expertise
work for a constructive managing greenhouse helping to drive
⚫ Stringent dialogue with gas emissions and change for young
anticorruption and ⚫ Equal opportunities for companies on ESG proactively reducing people
anti-bribery standards all issues our impact
⚫ Volunteering to help
⚫ Impactful governance ⚫ Innovative
young people to
and oversight responsible
succeed in life
investment solutions
⚫ Proper dedicated
governance

We encourage a culture of responsible business and proactively take responsibility for the impact
we have as a business on our people, our industry, our communities and our planet.

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Responsible Investment
Building a Common Responsible Investment framework
Three key objectives for 2022 Business lines already onboard

100% ESG Being an active Wealth Asset Merchant

Integration and engaged Management Management Banking
⚫ Comply with a group- investor ⚫ Launch of an ESG Europe ⚫ Integration of ESG
wide “Exclusion Policy” ⚫ Join international mandate by the criteria at every
⚫ 80% of assets are
⚫ Use a common ESG initiatives Rothschild Martin already integrating stage of the
data provider Maurel Belgian ESG factors covering investment process
⚫ Engage in voting branch in 2019
⚫ Report on a all assets classes ⚫ Responsible and
⚫ Promote and support ⚫ Launch of a Private Ethical approach to
comprehensive set of sustainable investing ⚫ ESG oriented
ESG / Impact data assets feeder fund mandates for governance
practices targeting renewable institutional clients & ⚫ Member of the IC20
energies by launch of a SRI- initiative
Offering of innovative sustainable Rothschild Martin certified products range ⚫ Development of an
Maurel France in 2019
investment products impact offering
⚫ Create flagship sustainable products ⚫ Member of the Climate
Action 100+ Initiative
⚫ Create donation shares

Signatories among the Group

2011 : Asset Management Europe
2012 : Merchant Banking
2018 : Wealth Management UK
2020: All relevant business divisions to become UNPRI signatories

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Major FX rates

Balance sheet (spot) P&L (average)

Rates 31/12/2019 31/12/2018 Var Rates 2019 2018 Var

€ / GBP 0.8522 0.8938 (5)% € / GBP 0.8749 0.8854 (1)%

€ / CHF 1.0860 1.1288 (4)% € / CHF 1.1114 1.1507 (3)%

€ / USD 1.1214 1.1439 (2)% € / USD 1.1191 1.1782 (5)%

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Summary Balance sheet

(in €bn) 31/12/2019 31/12/2018 Var

Cash and amounts due from central banks 4.4 4.7 (0.3)
Loans and advances to banks 2.0 2.0 0.0
Loans and advances to customers 3.3 2.9 0.4
of which Private client lending 2.8 2.5 0.3
Debt and equity securities 2.8 2.1 0.7
Other assets 1.7 1.5 0.2
Total assets 14.2 13.2 1.0

Due to customers 9.5 8.7 0.8

Other liabilities 2.1 2.0 0.1
Shareholders' equity - Group share 2.2 2.0 0.2
Non-controlling interests 0.4 0.5 (0.1)
Total capital and liabilities 14.2 13.2 1.0

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 Non-controlling interests

P&L Balance sheet

(in €m) 2019 2018 (in €m) 31/12/2019 31/12/2018

Interest on perpetual
17.3 17.7 Perpetual subordinated debt 303 291
subordinated debt

Preferred shares 1 136.2 146.3 Preferred shares 1 138 159

Other Non-controlling interests 0.3 3.5 Other Non-controlling interests 5 6

TOTAL 153.8 167.5 TOTAL 446 456

Note
1 Mainly relates to the profit share distributed to French partners

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 Alternative performance measures (APM)
Definition
APM Definition Reason for use

Net income – Group share Net income attributable to equity holders excluding exceptional items To measure Net result Group share of
excluding exceptionals Rothschild & Co excluding exceptional items

EPS excluding exceptionals EPS excluding exceptional items To measure EPS excluding exceptional items
Ratio between adjusted staff costs divided by consolidated revenue of Rothschild & Co (as presented on slide 28). Adjusted staff
Adjusted compensation costs represent:
To measure the proportion of Net Banking
ratio 1. staff costs accounted in the income statement (which include the effects of accounting for deferred bonuses over the period in Income granted to all employees.
which they are earned as opposed to the “awarded” basis)
Key indicator for competitor listed investment
2. to which must be added the amount of profit share paid to the French partners banks.
3. from which must be deducted redundancy costs, revaluation of share-based employee liabilities and business acquisition costs
treated as employee compensation under IFRS Rothschild & Co calculates this ratio with

- which gives Total staff costs in calculating the basic compensation ratio adjustments to give the fairest and closest

4. from which the investment costs related to the recruitment of senior bankers in the United States must be deducted, calculation to that used by other comparable

5. the amount of adjusted staff costs is restated by the exchange rate effect to offset the exchange rate fluctuations from one year listed companies.
to the next
- which gives the adjusted staff costs for compensation ratio.
Ratio between Net income - Group share excluding exceptional items and average tangible equity Group share over the period.
Return on Tangible Equity To measure the overall profitability of Rothschild
Tangible equity corresponds to total equity Group share less intangible assets (net of tax) and goodwill.
(ROTE) excluding Average tangible equity over the period equal to the average between tangible equity as at 31 December 2018 and 30 June 2019 & Co excluding exceptional items on the equity
exceptional items capital in the business
Each business Operating margin is calculated by dividing Profit before tax relative to revenue, business by business.
Business Operating margin To measure business’ profitability
It excludes exceptional items
Ratio of an adjusted profit before tax divided by an internal measure of risk adjusted capital deployed in the business on a rolling
Return on Risk Adjusted 3-year basis. To measure the performance of the Merchant

Capital (RORAC) The estimated amount of capital and debt which management believes would be reasonable to fund the Group’s investments in Banking’s business
Merchant Banking products is consistent with its cautious approach to risk management. Based on the mix of its investment
portfolio as of the reporting dates, management believes that this “risk-adjusted capital” (RAC) amounts to c. 70% of the Group’s
investments net asset value and that the remainder could be funded by debt. This percentage broadly represents the weighted
average of 80% for equity exposures, 50% for junior credit exposures, 40% for CLO exposures in vertical strips and 33% for senior
credit exposures.
To calculate the RORAC, MB profit before tax is adjusted by a notional 2.5% cost of debt, computed as per the above (i.e. 30% of
the Group’s investments NAV), divided by the RAC.
Disclosed RORAC is calculated on a 3-year rolling period average to account for the inevitable volatility in the financial results of
the business, primarily relating to investment income and carried interest recognition.

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Alternative performance measures (APM)
Calculation
ROTE RORAC

2019 2018 2019 2018

Net income - Group share PBT 2019 111

233 303
excluding exceptionals PBT 2018 102 102
PBT 2017 120 120
Shareholders' equity - Group PBT 2016 82
2,039 1,912
share - opening Average PBT rolling 3 years 111 101
- Intangible fixed assets (159) (163)
- Goodwill (124) (123) NAV 31/12/2019 617
NAV 31/12/2018 515 515
Tangible shareholders' equity - 1,755 1,626 NAV 31/12/2017 526 526
Group share - opening NAV 31/12/2016 470
Average NAV rolling 3 years 553 504
Shareholders' equity - Group
2,240 2,039 Debt = 30% of average NAV
share - closing 166 151
- Intangible fixed assets (158) (172)
(4) (4)
- Goodwill (140) (124) Notional interest of 2.5% on debt

Tangible shareholders' equity - 1,942 1,742 Average PBT rolling 3 years

Group share - closing adjusted by the cost of debt 107 98
interest
Average Tangible equity 1,849 1,684
Risk adjusted capital = 70% of
387 353
Average NAV
ROTE excluding exceptionals 12.6% 18.0%

RORAC 28% 28%

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Rothschild & Co at a glance
As at 31 December 2019

Enlarged family concert Float

49.7% of share capital 44.4% of share capital

(62.7% voting rights) (37.3% voting rights)

Managing
Rothschild & Co Gestion Partner 5.9%

Global Advisory Merchant Banking Wealth Management Asset Management

c.45 countries UK Switzerland Europe

Five Arrows Managers LLP Rothschild & Co Rothschild &Co Asset
Bank Zurich Management
France
Five Arrow Managers France US
Rothschild Martin Maurel Rothschild & Co
Luxembourg Asset Management
R&Co Investment Managers
SA UK

US Rothschild & Co
Wealth Management
Five Arrows Managers LLC

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Disclaimer

This presentation has been prepared solely for information purposes and must not be construed as or
considered as constituting or giving any investment advice. It does not take into account, in any way whatsoever,
the investment objectives, financial situation or specific needs of its recipients.
This presentation and its contents may not be copied or disseminated, in part or as a whole, without prior written
consent of Rothschild & Co.
This presentation may contain forward-looking information and statements pertaining to Rothschild & Co SCA
(“Rothschild & Co”), its subsidiaries (together, the “Rothschild & Co Group”) and its and their results. Forward-
looking information is not historical. It reflects objectives that are based on management’s current expectations or
estimates and is subject to a number of factors and uncertainties, that could cause actual figures to differ
materially from those described in the forward-looking statements including those discussed or identified in the
documentation publicly released by Rothschild & Co, including its annual report.
Rothschild & Co does not undertake to update such forward-looking information and statements unless required
by applicable laws and regulations. Subject to the foregoing, Rothschild & Co has no obligation to update or
amend such information and statements, neither as a result of new information or statements, nor as a result of
new events or for any other reason.
No representation or warranty whatsoever, express or implied, is made as to the accuracy, completeness,
consistency or the reliability of the information contained in this document. It may not be considered by its
recipients as a substitute to their judgment.
This presentation does not constitute an offer to sell or a solicitation to buy any securities.
This presentation is qualified in its entirety by the information contained in Rothschild & Co’ financial statements,
the notes thereto and the related annual financial report. In case of a conflict, such financial statements, notes
and financial reports must prevail. Only the information contained therein is binding on Rothschild & Co and the
Rothschild & Co Group. If the information contained herein is presented differently from the information contained
in such financial statements, notes and reports, only the latter is binding on Rothschild & Co and the Rothschild
& Co Group.

For more information on Rothschild & Co: www.rothschildandco.com

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