LUXEMBOURG AND THE UHNW INDIVIDUAL STEP Benelux – 26 th February 2014

Who are we? » Private bank serving UHNW individuals and families across the world. » Established in 2009 » 100% owned by entrepreneurial family originating from UK » Offices in Luxembourg, London and Monaco » A family office with a banking licence Banque Havilland – February 2014 l Page 2 Strictly Private and Confidential

Why did we set up a bank? » Response to the global financial crisis – “a safe bank” » Gap in the market for premium service » Support family office activity » Build legacy for the family » Respond to the changing needs of UHNW people in the current environment Professional and personalised assistance beyond traditional asset management Banque Havilland – February 2014 l Page 3 Strictly Private and Confidential

«The new normal» » Volatile asset markets » Low economic growth rates » Recession in Europe » Emerging markets (China, Brazil) » Growing tax, legal and compliance pressures » More access to information ; more sophisticated. » Globalisation – international families UHNW families have complex needs in a changing environment RBC World Wealth Report 2013 Banque Havilland – February 2014 l Page 4 Strictly Private and Confidential

Who are the UHNWs of today? Banque Havilland – February 2014 l Page 5 Strictly Private and Confidential Source: Wealth-X World Ultra Wealth Report 2013 Top 5 industries% Finance, Banking & Investment 22.0 Industrial Conglomerates5.2 Real Estate5.0 Non-profit & social organisations 4.8 Manufacturing4.7 Most significant industries of self-made UHNWs UHNWs are increasingly entrepreneurs and business owners – more sophisticated, demanding and more complex needs.

UHNW needs and expectations from wealth advisers » Single point to assist in managing different critical activities (e.g. wealth preservation, tax) » Holistic approach – from structuring to implementation » High level of service and responsiveness » Co-ordination role – to deal with different service providers » Control and risk management » Due diligence support » Efficiency – cost management, user friendly, secure » Discretion, loyalty from staff – trust and confidence – managing a family. » Innovation – philanthropy, art investments, use of technology » Ability to deal with anything…? Banque Havilland – February 2014 l Page 6 Strictly Private and Confidential

Factors for UHNWs to consider when selecting a jurisdiction Banque Havilland – February 2014 l Page 7 Strictly Private and Confidential

Why Luxembourg? » International environment – multi-lingual and multi- cultural » Location – heart of Europe » Small country – pragmatic and reactive government, regulator etc » Financial centre of excellence and expertise – access to top service providers » Wealth management tool box – attractive tax regimes » Safe haven for assets – political and economic stability » Innovative – Freeport, Foundation, IT A platform for growing our private banking business… Banque Havilland – February 2014 l Page 8 Strictly Private and Confidential

Specific Opportunities: SICAV-SIF » A flexible vehicle which allows both traditional financial assets, private equity and real estate as well as collectible assets (art, jewellery, cars, horses, watches) » Can be used as a tool for: o Active investment management o Estate Planning o Asset Protection » The SIF is targeted at the following: o UHNW individuals and families o Family Offices o International wealth planners, among others who are looking for an alternative estate planning solution for their client base. » Fund managers and other institutional investors. Banque Havilland – February 2014 l Page 9 Strictly Private and Confidential

Specific opportunities: New Markets Brazil & China Recent changes to BRAZIL tax law means that Luxembourg is now a more attractive jurisdiction for the structuring of funds. Brazilian clients have a comfort level with fund structures and in the past have used more traditional offshore jurisdictions such as Bermuda and Cayman for fund structures. These jurisdictions are now in scope of the changes to the law so Brazilian clients are looking to Luxembourg for this type of structure. With the acquisition of Banque Pasche this is an excellent tool that we can offer for their Latin American client base CHINESE are entrepreneurs and have compact family structures and treat their personal assets like business with view of multiplying their wealth (more than seeking yield). In addition, they are big collectors of fine art, wine, jewellery and watches, which are typical of the alternative asset classes that can be structured through a SIF In 2008, a Memorandum of Understanding was signed between Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) and the China Banking Regulatory Commission (CBRC). The MoU allows QDIIs to invest on behalf of their clients in financial products regulated by the Luxembourg Supervisory Authority. With this memorandum, Luxembourg is positioned as a gateway to China, clearing the way for Luxembourg fund management companies amongst others to reach investors from the booming Chinese fund industry. Given its traditional strengths as a fund domicile, the Grand Duchy is a natural gateway for investment flows into and out of China and they are familiar with fund structures. Banque Havilland – February 2014 l Page 10 Strictly Private and Confidential