QUARTERLY
BY LEONTEQ
2
15
THE MAGAZINE FOR INVESTMENTS, TRENDS AND TECHNOLOGIES
BUSINESS TRAVEL
48 HOURS
IN MONACO
FUTURE
MARVELLOUS
PROSPECTS FOR THE
PHARMA INDUSTRY
INTERVIEW
DIETRICH
MATESCHITZ
TAKES THE BULL
BY THE HORNS
MADE TO MEASURE
HOW MONTBLANC IS
CAUSING A SENSATION
IN THE WATCHMAKING
INDUSTRY
FOCUS ON
CRUDE OIL
2 EDITORIAL
Dear clients
In this second Quarterly following the relaunch, we’re delighted to feature another
remarkable entrepreneur, Dietrich Mateschitz, the founder of the successful soft
drink company Red Bull. Mateschitz’s clever marketing ideas helped Red Bull shoot to
global prominence as a brand in the space of just a few short years. Despite the wellknown slogan ‘Red Bull Gives You Wings’, Mateschitz himself still has his feet firmly on
the ground, as his attitude to luxury clearly demonstrates. Our second interview focuses
on another ambitious entrepreneur, Montblanc CEO Jérôme Lambert, who is now
seeking to cause a sensation in the watchmaking industry.
Speaking of wings, for our report on the ever more popular
fun sport of kitesurfing we turn to former windsurfing pro
Alexander Lehmann. Just a few years ago, kitesurfing was
seen as a super-dangerous activity for lovers of extreme
sport. Today, there are much more sophisticated systems in
place, ensuring greater safety for thousands of fans around
the world, with no loss of fun.
Thank you for all
your positive feedback
about our magazine.
The link between water and oil is sometimes closer than we think, as our main article
on crude oil reveals. The price of oil has dropped dramatically in recent months.
While production capacity in the USA is gradually being scaled back, OPEC has not yet
decided on a reduction. The tumbling prices of crude oil have hit oil and gas stocks
hard. A megadeal here could herald a further consolidation. Finally, we turn our
attention to exploring the extraction method known as fracking, which has caused
a real explosion of production in certain countries.
This issue’s ‘Future’ article takes a look at the pharmaceutical industry.
Increasing wealth – especially in Asia – will lead to greater spending on health and
higher sales for pharmaceutical companies.
I hope this latest issue brings you some exciting new insights.
Jan Schoch
CEO | Leonteq Securities AG
CONTENTS 3
Contents
LOCATION
AT A GLANCE The oil
market. Page 4
The best tips for a
weekend in Monaco.
NEWS What’s new at
Leonteq this quarter.
Page 6
PORTRAIT Turbo-charged:
Dieter Mateschitz. Page 8
SPORT Easy to learn and
high on adrenaline. Kite
surfing! Page 14
SPECIAL REPORT:
CRUDE OIL
INTERVIEW
‘Chief Bull’ Dieter
Mateschitz in a rare
interview.
8
38
BLACK GOLD ANTICS
The price of crude oil has
decreased enormously.
Page 18
IN HOT OIL The sharp fall
18
in prices has hit the oil and
gas sector hard. Page 24
A COUNTRY INTOXICATED
BY OIL The USA is back.
Page 28
34
FUTURE
Pharma – an endless
market that keeps growing.
Page 30
MADE TO MEASURE
Montblanc – The traditional
watchmaker and its ambitious
goals.
MADE TO MEASURE
Montblanc – Hamburgbased traditional watchmaker wants more. Page 34
LOCATION Monaco has
more to offer than its
casino. Page 38
BATTLEZONE CRUDE OIL All in black.
GIMMICKS BBQ o’clock!
Page 42
Publishing information
Published by
Leonteq Securities AG
Brandschenkestrasse 90, P.O. Box 1686
8027 Zurich, Switzerland
Publication: 3 times per year
Print run: 3,000 DE / 2,000 EN
Concept + realisation
Leonteq & Axel Springer Schweiz AG
Corporate Media, www.axelspringer.ch
Editor-in-Chief
Manuel Dürr
manuel.duerr@leonteq.com
Translation
Amelia Sassano
Marketing Director
Sandra Frank Dudler
sandra.frank@leonteq.com
Authors
Wolfgang Hagl
Christian Ingerl
Alexander Lehmann
Oliver Klaffke
Hubert Patterer
Mark C. Schneider
Christoph Wöhrle
Photo credits
Title: Getty Images / Gerard Rancinan;
Contents: Getty Images / Mark Thompson;
Portrait: Getty Images / Gerard Rancinan (p. 9);
Getty Images / Mark Thompson (p. 13);
Oil: Royal Dutch Shell (p. 25), BP (p. 25);
Montblanc: Simone Scardovelli (p. 36, 37);
Illustration: Felice Bruno (p.40).
All other photos are from iStock.
Subscriptions
Leonteq Securities AG
sandra.frank@leonteq.com
Tel. +41 58 800 1091
Fax +41 58 800 1010
Printing
Staffel Medien AG, Zurich
www.staffelmedien.ch
Reproduction, in whole or in part, of articles
and images is permitted only with the prior
written approval of Leonteq Securities AG.
No liability is assumed for unsolicited
deliveries.
Legal notice
This publication is for informational purposes
only and is not research; it does not constitute
a recommendation to buy or sell financial products, and/or an invitation to provide an offer.
The information herein is provided without
any guarantee or warranty with regard to
accuracy, completeness or reliability. It is
explicitly recommended that investors obtain
comprehensive and personal advice from a
financial expert before investing in any financial
products. This publication is no substitute for
such consultation.
© Leonteq Securities AG 2015.
All rights reserved.
In keeping with the principle of sustainability, this publication was printed on paper certified carbon-neutral, thus contributing to sustainable forestry
worldwide. Only green energy was used in the production of this publication, and a hybrid vehicle was used to deliver it.
4 AT A GLANCE
The oil market
North America
Much of the oil trade takes place directly between
suppliers and buyers, without the involvement
of the stock market. Prices are based on
international oil market prices. The market price
is determined by supply and demand.
Crude oil reserves
Barrels (percentage worldwide)
Other variables, such as economic growth, limited
resources, production volumes and financial
market factors, as well as events such as natural
disasters, wars, and political crises, can bring
pressure to bear on the price.
FACTORS THAT
INFLUENCE THE
PRICE OF CRUDE OIL
Annual production
Barrels (percentage worldwide)
233 bn (14%)
18.7 m (21%)
23.3 m (24%)
13.95 tn
Annual consumption
Barrels (percentage worldwide)
Market value of reserves held,
Average as at May 2015
USD 60 per barrel
Logistics
& Infrastructure
Low stocks, complex transport
routes and lack of freight capacity make oil more expensive.
Taxes
Currency
fluctuations
High taxes are often intended
to make the economy less
dependent on fossil fuels.
Fluctuations in the US dollar
rate of exchange influence the
price of the commodity and
vice versa.
Central &
South America
330 bn (19%)
7.6 m (9.3%)
7.1 m (7.8%)
19.81 tn
Politics
Global demand
When demand increases
due to favourable market
conditions but production
volumes do not, the
price rises.
159 litres
Warm winters, easing of
tensions in crisis areas which
have oil production facilities and
a slowdown in the economy lead
to a drop in price.
OPEC
The OPEC member states
cooperate closely to determine
production volumes, thereby
impairing the influence of free
market forces on pricing.
1 km
60 km
Aeroplane
Ship
1 barrel (bbl)
=
QUARTERLY 2 | 15
DISTANCES TRAVELLED
ON ONE BARREL OF CRUDE OIL
=
5
PRODUCTION VOLUMES AND REVENUES
Europe, Russia &
Central Asia
155 bn (9.1%)
17.2 m (20%)
18.3 m (20%)
9.29 tn
Africa
129 bn (7.6%)
8.3 m (9.3%)
3.8 m (4.3%)
7.75 tn
Near East
811 bn (48%)
19 m (21%)
23 m (24%)
13.95 tn
Asia Pacific
43 bn (2.5%)
8.3 m (9.4%)
31 m (34%)
2.56 tn
Global
1 700 000 000 000 000 barrels
88 700 000 barrels
92 100 000 barrels
USD 13 950 000 000 000
100 km
1 000 km
1 800 km
Heavy goods vehicle
Passenger vehicle
Motorcycle
6 NEWS
LOCAL
Manuel Dürr (centre) talking with Martin Raab (left)
and Daniel Manser (right) as he receives the prize in
the Best Precious Metal Product category
SWISS DERIVATIVE AWARDS 2015
Winner of five awards
The award ceremony for the Swiss
Derivative Awards, which took place
in the AURA event centre in Zurich on
26 March 2015, marked the Award’s
tenth anniversary. The independent
expert jury presided over by Professor
Marc Oliver Rieger honoured Leonteq
Securities AG with an impressive total
of five awards, a first in the history of
the Swiss Derivative Awards.
It was particularly gratifying for Leonteq
that it received the coveted Top Service
award for the fifth consecutive year.
We appreciate the recognition that these
awards confer on our work and would like
to take this opportunity to thank you for
your vote and your support.
Top Service special prize
This award is given to the issuers with the
QUARTERLY 2 | 15
best investment service.
Best Market Maker Investment
Products category
By market making, an issuer ensures that
it has quoted fixed bid and offer prices for a
particular security in sufficient volumes to
ensure that market liquidity is guaranteed.
It is the fourth time in a row that Leonteq
has received this prestigious award for best
investment product market maker.
Best Precious Metals Product category
For its inverse barrier reverse convertibles
on gold, which is the only product on the
Swiss market with which the investor can
profit from sideways or downwards movement in gold prices.
Best Product in Alternative Underlyings
category
For the tracker certificate on Zurich Insurance 2017 Dividend Future securities. This
is the first product on the Swiss market
to offer investors access to share dividend
futures.
Special Award: Public Constructor
The jury recognised the fact that the Public
Constructor raised transparency in
the pricing of a structured product to a
new level. The Public Constructor has been
publicly available on the Leonteq website,
www.leonteq.com, since last year.
7
GLOBAL
INNOVATIVE PLATFORM
for structured products in Asia Pacific
We have signed a letter of intent on the
integration of a multi-issuer system for
the distribution of investment products
(IPDS) with Avaloq, DBS and Numerix.
The cooperation is aimed at enhancing
development with regard to the supply
and distribution of structured investment
products. Under this initiative IPDS will
be connected to the Avaloq Banking Suite,
with DBS serving as the pilot bank. The
first phase will focus on the Asia Pacific
region. Avaloq, DBS, Leonteq and Numerix
have jointly agreed to develop the IPDS for
the following purposes:
1. To provide access to DBS structured
investment products, and in the future,
extend the platform to include selected
product issuers and other products and
instruments.
2. To provide a web-based, multi-user
solution to be developed by Numerix which
enables real-time, analytics-based product
structuring and pricing, and a straightforward trade and order management
workflow.
3. To provide access to designated automated services on Leonteq’s integrated
technology and services platform.
4. To provide connectivity to the Avaloq
Banking Suite, thus enabling straight
through processing (STP) of transactions
in these products.
The cooperation complements the business strategies of the four partners well in
terms of their existing product and service
offerings, both in Asia and internationally,
and will create revenue and cost synergies from the pooling of infrastructure,
information technology and other support
services. Investors in structured investment
products will benefit from the enhanced
functionality and quality. Says Jan Schoch,
Leonteq CEO, “The cooperation between
the four partners is a significant step
towards developing a highly innovative
investment platform. This platform is
unique in that we are pursuing a buy-side
approach in order to improve the quality
of service from the client’s perspective. It is
an honour for Leonteq to work with such
reputable partners and to take advantage
of their combined expertise to create this
investment solution.”
8 PORTRAIT
THE HIGH FLYER
DIDI
MATESCHITZ
Self-made billionaire Dietrich Mateschitz (70) used
creative marketing ideas to make Red Bull a globally
successful brand. He reveals here why he thinks wealth
tax is fair and that politics on its own is not a true profession,
and where he’ll be spending his retirement.
“I find true
luxury in
nature and
good friends”
W
ith an estimated wealth of around
USD 10.8 billion, Dietrich ‘Didi’
Mateschitz (70) from Sankt Marein
im Mürztal is the richest Austrian.
The former Blendax manager
acquired his wealth from the caffeinated energy
drink Red Bull, which was introduced to the market
in 1987. Mateschitz owns 49 per cent of the
company, while the Thai entrepreneurial family
Yoovidhya owns the other 51 per cent.
As soon as his cash flow would allow, Mateschitz
subsidised a number of trendy extreme sports. This
lent weight to his reputation as a marketing genius,
a reputation he enjoys to this day. Not everything is
going to plan at the moment, though. Mateschitz’s
most important promotional vehicle, his Formula 1
team, is lagging behind the others. What’s more,
Coca-Cola has now invested in a rival energy drinks
company Monster.
Mateschitz graduated from the Vienna University of
Economics and Business. His passion is for aircraft,
for which he had Hangar 7 designed by architect
Volkmar Burgstaller and built in his adopted city,
Salzburg. With a donation of EUR 70 million, the
entrepreneur is also supporting research into finding
a cure for spinal paralysis.
9
We are totally
transparent
Interview: © Kleine Zeitung Graz
10 PORTRAIT
Mr Mateschitz, advertising of the Red Bull brand
goes hand in hand with extreme sport and
pushes the limit, exploiting danger and risk.
Do you understand critics who regard this as an
ethically questionable concept?
All the extreme sports people, base jumpers and
motocross racers were involved in these activities
long before we sponsored them. And when we hold
events, we’re usually not the ones who come up with
the idea; more often than not, it’s the athletes themselves who come to us. Then we try to minimise the
risk, carry out tests and prepare meticulously for
months before. But there is always some element of
risk. Someone plays football, has a heart attack and
drops dead. Did anyone ever call Bernie Ecclestone to
account when there was a fatal accident in the 1970s
or 80s? Athletes have a passion for taking risks.
I’d like to see politicians
who have a profession.
Felix Baumgartner’s jump from the stratosphere
could have ended up as a live worldwide
transmission of a tragedy.
No, it wouldn’t have. We had safety measures in place
which we did not speak about publicly. In the worstcase scenario, Felix would perhaps have fainted, but
he would still have come down fine.
In the United States your company was sued
because a consumer allegedly died as a result of
excessive consumption of Red Bull. How are you
dealing with this?
This happens five times a year, and is understandably annoying. You have to understand the American
justice system, and the lawyers who hand out their
business cards and say that they will represent you
for free, but will get 30% or more of the proceeds of
the lawsuit. We have clinical and toxicological studies
metres high proving how harmless it is; the allegations are absurd. And if the French want to introduce
a tax on energy drinks, they’re doing it not in the
interests of public health, but because it’s one way of
filling the empty State coffers with 80 million euros.
Double moral standards, lies and deception are at
Red Bull spends
EUR 1 billion a year on
global marketing
11
JUMP FROM THE STRATOSPHERE
On 14 October 2012, Felix Baumgartner rose in a pressure capsule
with the aid of a helium balloon from Walker Air Force Base in
Roswell, New Mexico, USA, to the stratosphere so that he could
make a jump with nothing but a protective suit and a parachute.
After the jump, he had achieved:
- the highest jump ever made by a parachutist, at 38,969.4 m,
- the longest free-fall, lasting 36,402.6 m, and
- at 1,357.6 km/h, the fastest speed in free-fall without a stabiliser parachute.
12 PORTRAIT
play here. Coca-Cola has a similar problem; with
them, the issue is sugar. McDonald’s are dealing with
consumers suing for being overweight; at Walmart,
it’s freshly washed floors. I could go on and on listing
similar cases. I agree with Viktor Frankl, who says
that the quintessential human right is that of
responsibility.
Responsibility needs to be contextualised.
Because the State defines our responsibilities so
precisely, no room is left for individuals to exercise
responsibility on their own initiative. In education,
teachers or the system are always to blame; it is
never the fault of the parents or the children themselves. Everything is regulated down to the last detail.
If I stopped going to the
office tomorrow, nobody
would notice.
The law stipulates that a signpost on a mountain
must be powdercoated yellow and that sheep and
cows in Alpine pasture must be branded with this,
that and the other colour; so much so that you can
hardly see their ears. I believe in individuality, not
conformity. I am amazed how much people actually
accept. That they put up with what the NSA does,
what the United States does, what the EU is doing.
Someday, there will be an uprising.
Did you ever want to be a politician?
No, I would be completely useless. It has to do with
the political culture. I don’t think it is right that it’s
primarily concerned with the preservation of power
of one’s party, that people want to convince through
defamation of and discrimination against other
parties and not by their own performance. I would
never take it up myself. I don’t think it’s a good thing
for someone to be a career politician. What can you
learn from it? What kind of profession is it?
Mateschitz in
numbers
116
His ranking in Forbes
World’s Billionaires
list 2015, with an
estimated net worth
of USD 10.8 bn.
5.6 billion
cans of Red Bull
energy drink were
purchased in 2014;
200 million more
than in 2013.
1
son (22) from a
two-year relationship; Mateschitz is
unmarried.
7
Mateschitz´s great
passion is aeroplanes,
some of which he
exhibits at Hangar-7
in Salzburg.
A responsible and time-consuming one.
That one is good at rhetoric? That one can lie well?
How to be opportunistic? That’s not a profession.
I would like to see politicians who have a profession
– politicians who are farmers, lawyers, financiers,
scientists, professors, entrepreneurs, journalists,
business people. And if they fail at politics, i.e. don’t
perform well, then they can go back to the firm or
to the farm. Then at least dependence on political
parties would be done away with. And why must one
belong to a political party at all? A country misses
out on some of its best minds because this is exactly
what they don’t want. In essence, it is quite simple
– in politics and everywhere else. It’s about competence and character – nothing else.
Your product faces global competition. How
competitive is Austria?
Austria could exploit its potential better. This applies
to science as well as technology, research and business. There are many brands in Austria which also
have the potential to succeed internationally. Why
not all succeed, why perhaps not all have even tried,
I cannot say. Maybe some of them do not have
enough self-confidence, lack the joy of challenge,
courage; many are perhaps too comfortable, complacent. But maybe it’s just not possible for them to
finance such a step.
Austria has plans to tax wealth more heavily.
As one of the more glamorous people affected,
would you advocate this?
Yes, wealth tax is certainly fair and legitimate. Even
though, of course, we’re already paying an arm and a
leg in taxes right now.
Where does Red Bull pay its taxes?
Our entire global revenue is taxed in Austria. I have
made it quite well known that we are totally transparent. We do not have a procurement company in
Hong Kong; we don’t have the brand registered in
the Cayman Islands. We pay every cent of tax due,
without any fancy corporate structures, and that is
as it should be. In exceptional times, however, such
as the ones we operate in, it is the duty of the individ-
13
DIETER MATESCHITZ LIVES
IN MARIA ALM
on an Alpine farm at the foot of the
Steinernes Meer. His mother (99)
lives with him, in a guest house next
to the farmstead.
ual, if financially able, to make additional
contributions. One could get the wealthy
large companies to voluntarily make a oneoff contribution or, for that matter, spread
it over two or three years – and perhaps
more would come of it than one could ever
imagine now.
Would you do this?
Yes, if it were necessary. The only problem is that in total, it will not help much.
If you save five euro per month for every
employed person, the total is many times
higher than if you take away the so-called
millionaire’s millions. As far as we are
concerned, we do a lot anyway. And if, in
total, it is more than what is feasible, then
we have to make savings on other things,
be they in sport, research, in the social
sphere or elsewhere. I would, however, like
to point something out: I think that the
amount of tax revenue Austria receives, as
one of the highest taxed countries in the
world, is more than sufficient. The key lies
in distributing it properly. But again:
I believe a wealth tax to be totally in order.
occasionally, a good meal out. I would also
include here a decent pair of skis and a
sensible mountain bike.
How much tax does the company pay?
I don’t know exactly. If you add up all the
VAT, corporate tax, payroll tax, municipal
taxes, and all the other taxes, then that’s a
few hundred million a year.
You are now seventy years old. What
lies ahead for you?
I continually remind myself that it is time
for me to retire. People around me assure
me that this would not be a particularly
good idea. I have reduced my work schedule to a three-day week, and I only manage
to stick to it about half the time. I tell
my four-member executive board that they
must gradually get used to making decisions without me because at some point
I will only be a woodcutter. •
Switzerland would be nicer.
I joked once that if I went to Switzerland,
I could buy an enormous villa at Lake
Lugano every three months, and give the
whole thing away four times a year, and it
would still be cheaper than paying taxes in
Austria.
What’s your definition of luxury?
The intensity of unspoiled nature, a small
circle of friends who are good-humoured
and like to philosophize. Satisfying work.
Family. Time, sovereignty over it and,
14 SPORT
KITESURFING
HIGH ABOVE
THE WAVES
Easy to learn and high on adrenaline. Watersports
legend Alexander Lehmann explains what makes
kitesurfing so fascinating.
QUARTERLY 2 | 15
15
J
ust a few moments ago the beach was
bathed in sunshine. But suddenly, the sky
above the sea turns dark. The seagulls
are not the only ones to be silenced by the
dull rumbling sound in the distance. The
light north-westerly sea breeze whips up
a serious storm in minutes. I taste the salt on my lips, while
flurries of sand chase over the dunes, carrying off their first
sun umbrellas along with them. The bathers hastily flee the
beach, quickly gathering up their towels and picnic utensils
as they go. Meanwhile, I calmly pull on my wetsuit with a
mounting sense of anticipation. I strap on my kite and grab
the board, knowing that an action-packed session lies ahead
of me in the waters of the Baltic.
Pure adrenaline
Soaring silently over the water, lifted several metres upwards by the wind and surfing the waves, without having to
paddle even once. Kitesurfing, also known as ‘kiteboarding’
is one of the most action-packed water sports around. This
is where the human fascinating for outwitting gravity with
lightness becomes a reality.
Being driven by the power of a kite you can steer has
opened up a new avenue for fun sports fans. Apparently
weightless, they are catapulted upwards to heights of up
to 20 m, taking full advantage of the way the kite carries
them along. Flight times of 10 seconds and more are not
uncommon. From cruising on flat water to surfing the
waves, there are more options here than in almost any other
watersport. Seen from the outside, it all appears incredibly
acrobatic – but it’s easy to learn. Whether you’re old or
young, an athlete or a sports fanatic, you make progress
much faster than in windsurfing or classic surfing, because
there’s significantly less physical effort required. Nevertheless, kitesurfing gives almost all your body’s muscles a total
workout and fully caters to your fitness needs.
You’re in or you’re out – lying on the water or gliding over
it. In kitesurfing there are no compromises. Which is why it
has become so popular so quickly. In windsurfing it often
takes long and tortuous years before you can step into
your foot straps and hook on your trapeze and glide over
the water, but you can experience your first successes in
EQUIPMENT
Don’t buy anything until you have done a course.
Avoid professional equipment if you’re still a beginner. Rookies need a kite that remains stable in the air,
performs neutrally and will be your friend.
The safety system is extremely important. It must
provide minimal traction in the first instance and then
allow you to completely abandon the kite using a quick
disconnect option on the safety leash.
16 SPORT
BAG OF TRICKS
The popular back roll manoeuvre step by step
kiteboarding after just a few hours, because unlike windsurfing, the mother of all fun sports, the lack of volume of
the board means you aren’t carried so far and so you can
plane from nought to sixty with the kite turned in the right
direction. This amazing feeling is what makes all fun sports
fascinating.
Whether snowboarding in deep snow, wind surfing, surfing,
wakeboarding or indeed kitesurfing, the feeling of weightless gliding is what electrifies people and keeps them
hooked. And with kitesurfing you get that feeling in no time
at all. Alternatively you just lie in the water.
Huge interest
While kitesurfing was seen just a few years ago as an extremely dangerous sport, the days of underdeveloped systems, materials cobbled together by amateurs and ‘learning
by doing’ are long gone. It was not so long ago, at the turn
of the millennium, that a few bold individuals could be seen
out on the water, drawn along by a huge kites attached to
a wind surfer or surfboard. At the time they were regarded
as weird, as nobody had a real handle on these strange goings-on. Today those same weirdoes, such as Flash Austin
or Robby Naish, are synonymous with the birth of a sport
that has captivated thousands of watersports enthusiasts
around the world.
From young guns to sporting seniors, kitesurfing has devotees from all ages and all walks of life. One of the reasons
for this rapid development is certainly that kitesurfing
combines the fascination of a whole range of sports. It
continues to draw inspiration from windsurfing, surfing,
paragliding, wakeboarding and skating. The barriers to
entry are relatively low, and compared to windsurfing, the
cost of materials is certainly manageable. When folded
away, the kite is about as heavy as a rucksack and your
complete kit can easily be transported in a sports car. And
there is the almost limitless freedom in the choice of spots.
Naturally, kitesurfing also has its rules. Bathing areas, shipping lanes, nature reserves and designated exclusion zones
must be avoided. But apart from that, virtually any’puddle’,
that has enough wind can be a kite spot, which means that
the sport can be enjoyed inland too.
A decade ago, kitesurfing was still a single-track pursuit
and was often scorned by devotees of established sports.
Fans stood on their boards, pulled along by their kites,
hopping occasionally above the surface of the water. And
that was it. But due to rapid developments, which show no
sign of letting up, there are now several ways to kitesurf
QUARTERLY 2 | 15
Kiting is an
either-or game:
either you lie in the
water or you glide
out on the water. The innovative influence of existing board
sports like wakeboarding has produced a number of multifaceted offshoots in just a few years. Under the umbrella
term ‘reestyle’, the disciplines of ‘old school’, ‘new school’
and ‘wake style’ have all developed, and have been joined
by those of ‘kite race’ ‘speed’ and ‘wave’ alongside the high
jumps. Whether kiting on obstacles such as kickers and sliders (from the world of wakeboarding and snowboarding),
waveboarding with or without hoops, or the relative newcomer wakeskating, in which the rider stands on something
resembling a skateboard, there’s no end to the ideas.
With a quarter of a million visitors, the Kitesurf World Cup
held for the last 10 years at St. Peter-Ording on Germany’s
North Sea coast has become the biggest and most far
reaching kiting event in the world and illustrates the huge
interest the sport now attracts. The numbers of practitioners are rising year on year.
17
Highly addictive high flying!
Once you’ve been bitten by the bug, the call of the wind
never leaves you – addiction guaranteed! Some years back,
the addiction also took hold of self-made billionaire Richard
Branson, who in late 2014 bought up the Professional Kiteboard Riders Association (PKRA) on the spot, and took the
sport to the next level, under the new name of the ‘Virgin
Kitesurf World Championships’. Branson himself is said to
feel restless on windy days, drawn by the invisible power
toward the water. Especially when the sky grows dark, the
light breeze turns into a powerful storm and the flying spray
of sea salt leaves traces on your lips.
Virtually no one knows the sport better than former windsurfing pro Alexander Lehmann (42), who is the founder
of the kiting magazine ’Kitelife’ and one of the founding
fathers of the Ocean Jumps, which draws many thousands
of fans every year during Kiel Week.
1
2
4
THE WORLD’S BEST
KITE SPOTS
7
5
6
8
9
3
THE BEST KITE SPOTS IN THE WORLD
For beginners, intermediate and advanced
Rookies Shallow areas guarantee beginners the
best conditions. It’s easiest to build resistance in kite
surfing in knee-deep water. Top spots: Fehmarn 1 ,
West Rügen Bodden 2 and Mauritius 3 .
Semis The best is an eclectic mix of shallow
water and small waves suitable for jumping. Top
spots: The German North Sea coast 4 (St. Peter
Ording), the Dutch coast 5 and the north coast of
Brazil 6 (e.g. Fortaleza).
Pros Experienced kite surfers look for strong
winds for high pressure in the sails and plenty of
waves for acrobatics. Top spots: Northern Denmark
(Hanstholm Klitmøller), Brittany 8 , Mauritius 9
(One Eye).
7
18 OIL
DATELINE
BATTLEZONE
CRUDE OIL
QUARTERLY 2 | 15
19
DEMAND IS STAGNATING, NEW POWER
ALLIANCES ARE FORMING
WHO REALLY DETERMINES THE EBB AND
FLOW OF OIL PRICES. CRIME AND BLACK
GOLD IN THREE CHAPTERS.
20 OIL
Produce, process, supply: The oil industry
production process
Black gold antics
The price of oil has decreased enormously. While US
production capacities are progressively being scaled down,
OPEC still cannot bring itself to cut back. The overall
geopolitical situation plays a key role here.
P
eople of the 21st century still cannot
get past crude oil. Despite all efforts
to increase the proportion of
renewable energy sources, the viscous
mixture consisting of hydrocarbons is
and will remain the most important raw material by
far. According to US Energy Information Administration (EIA) figures, the world consumed more than
92 million barrels of oil per day last year. Just under
half of this volume was accounted for by the 34
members of the Organisation for
Economic Co-operation and
More than 92 million
Development. In its projections,
barrels of oil per day are
the EIA estimates that the
consumed worldwide.
demand in OECD countries will
stagnate in the long term. By contrast, experts predict a rapid rise in energy consumption, particularly in Asia. By 2040 oil consumption is
expected to more than double in the region compared to the 2010 level of 43.2 million barrels per
day. According to the EIA, the immense energy needs
of emerging economies could push global consump-
QUARTERLY 2 | 15
tion to well over 119 million barrels per day within
the next 25 years.
Against this backdrop, the most recent trends in
commodity futures markets seem preposterous.
Two futures in particular are in the spotlight: the
US generic, Western Texas Intermediate (WTI), and
North Sea Brent. Until mid-2014 both futures moved
at a relatively high level. Then they corrected sharply.
Brent and WTI prices both declined by nearly 60 per
cent within the space of seven months. It was only at
the beginning of 2015 that the black gold stabilised
somewhat. The stronger US dollar must have played
a certain role in the sales. For example, the greenback appreciated relative to the euro by more than a
quarter within twelve months. Since time immemorial, there has been an inverse correlation between the
US dollar and commodity prices.
No hint of a shortage
The linchpin of the correction, however, was on the
supply side. According to the EIA, worldwide production exceeded consumption in 2014 by 400,000
21
Global oil consumption: Constant growth
in Mb/day
e = estimated. Source: EIA. Historical data is not a reliable indicator of future trends.
barrels daily. This resulted in a surplus on the global
market for the third consecutive year. There is a
veritable oil glut, in the US especially. For years,
the States have been pushing fracking technology.
This production method injects water treated with
certain chemicals at high pressure through dense
rock masses to extract oil and gas – more on that on
page 28. Nevertheless the US energy sector is by no
means indifferent to the enormous price drop, particularly given that fracking is a relatively expensive
production method. The EIA is already anticipating
a slowing of growth.
One indication of this is the reduced number of production activities, or rig counts, as they are called in
the industry. According to data from Baker Hughes,
the number of active oil drilling sites in the US fell
by more than 40 per cent in the first quarter of 2015.
By the end of February, the oilfield services company
had counted fewer than 1,000 extraction points for
the first time in almost four years. Fracking technology is used particularly in the extraction of shale
gas. “The rig counts are a good early indicator for
oil production,” says David Martin, a commodities
analyst with J.P. Morgan. He also made mention
of the capacity adjustments being made by energy
companies. In fact, many multinationals have made
drastic cut-backs.
Exxon Mobil is one example: against a background of
massive price drops, the US conglomerate announced
a reduction in capital expenditure for 2015 of approximately 12 per cent, or USD 34 billion.
Heavy losses for OPEC
According to David Martin, the capacity adjustments are somewhat more aggressive than originally
anticipated. They were not, however, able to influence the massive oversupply in the first quarter. “We
will have to wait for the impact of these cuts in the
120
100
80
60
40
20
0
2010
2011
2012
OECD
2013
Non OECD
market,” he said. This is all the more true, given that
the Organization for Petroleum Exporting Countries
(OPEC) has kept quiet for the time being. In a highly
anticipated meeting in November last year the cartel
did not cut back its target production of 30 million
barrels per day.
According to the EIA, the OPEC oil requirement is
29 million barrels per day. Clearly, OPEC takes into
account its relatively low production costs and cutthroat competition. The cartel, which is dominated
by Saudi Arabia, seems to be well prepared for heavy
losses. Be that as it may, the EIA calculated that the
net income for OPEC countries (excluding Iran)
from oil exports in 2014 was USD 730 billion, almost
USD 100 billion less than the previous year. In 2015,
the member states will have even heavier losses to
worry about. Meanwhile, by not reducing production, OPEC is contributing to a huge global stockpile.
2014e
2015e
22 OIL
OPEC oil export revenues:
Severe losses
USD billion (nominal), excl. Iran
e = estimated. Source: EIA. Historical data is not a reliable indicator of future trends.
1‘000
890
824
900
800
730
700
600
515
500
380
400
300
200
100
0
2012
2013
2014e
2015e
2016e
OECD revenues from oil exports
According to the EIA, at the end of March OECD
member states were holding stocks that would meet
their needs for 62 days. Twelve months ago, they held
five days’ worth of stock less.
Within six months, the stock in the
Stock in the USA
USA had increased by almost 30 per
cent to 467 million barrels.
has increased by
30 per cent.
QUARTERLY 2 | 15
Peculiarities of the futures market
The oil glut can also be seen on the futures graph.
WTI in particular shows a steep contango situation.
In other words, long-term futures contracts are
recording significantly higher prices than current
maturities. In concrete terms, a contract due to
mature in August cost USD 57 at the beginning of
July. To secure the same volume of the commodity
for August 2016, you would have to pay USD 60.50 –
a premium of 6.1 per cent. Before the price correction the situation looked quite different. Both WTI
and Brent stubbornly held firm in backwardation.
Experts start speaking of this situation as soon as
the futures graph takes a downward turn, because
then late-maturing futures are cheaper than futures
maturing earlier. Backwardation occurs particularly
when market players expect a shortage. They are
then prepared to pay a premium for the commodity
in exchange for short-term availability.
The unstable situation in several producing countries
led to latent supply fears until late last year. In addition to the nuclear dispute between the West and
Iran, the rather depressing situation in Iraq, Syria
and Libya and the conflict in Ukraine were considered to be the main negative factors. The market
seems more or less to ignore the geopolitical risk premium, which is always a significant pricing parameter, and could come into play at any time, particularly
since the flashpoints outlined above – apart from the
possible agreement with Iran – have only partly lost
their fire-power. Nevertheless, the prospects depend
heavily on the relationship between supply and
demand. In the short term a gradually declining
boom can be expected from the production side.
Economic trends will play a decisive role as regards
demand. If other major economies pick up speed
once the US economy does, this could increase the
demand for oil. Forecasters are still cautious though:
both the EIA and the International Energy Agency
estimate that global demand growth this year will be
just under one per cent.
Experts predict price increases
Most analysts therefore expect only a slow recovery
in prices. At the end of March, Reuters news agency
interviewed 34 equity research companies as to their
23
Oil price (WTI): Sharp correction
in USD/bbl. Source: Thomson Reuters.
Historical data is not a reliable indicator of future trends.
140
140
120
100
80
60
44.6
40
03/05
03/06
03/07
03/08
03/09
03/10
WTI
prognosis. According to Reuters, the experts forecast
that the price per barrel for Brent crude will average
out at USD 70 in 2016. This means that the cost of
North Sea oil would increase by some 13 per cent
compared to current levels. Meanwhile the WTI midrate for the coming year is estimated at USD 65.50.
This represents an upward potential of 14.9 per cent.
If the analysts are right, consumers can expect rising
costs at the petrol station or travel agent and in the
retail trade in the medium term.
03/11
03/12
03/13
03/14
03/15
24 OIL
In hot oil
The sharp fall in prices has hit the oil and gas sector
hard. European sector representatives economise. The
first mega-deal could herald further consolidation.
O
QUARTERLY 2 | 15
n 21 June there was a small anniversary of sorts on the agenda at the
Swiss Exchange. It was the day that
marked five years since Transocean
was listed on the Swiss Market Index
(SMI®). Exactly two months and one day after the
shares of the world’s largest operator of oil rigs and
tankers were first traded on the SIX Swiss Exchange,
they gained entry into the leading domestic index
on 21 June 2010. Neither the company itself nor
its shareholders have much reason to celebrate five
years later. Against the SIX opening prices of CHF
95.02, the shares have currently lost more than fourfifths of their value.
example. Yet what happened to Transocean is a clear
demonstration of how a decline in oil prices can
leave deep scars. This applies not only to specialist
service providers but also to broad-based industry
representatives. Groups such as these set the tone on
the STOXX® Europe 600 Oil & Gas index. Almost
simultaneously with the commodity listing, the European sector index took a downward turn in mid-2014
and fell by almost a third in less than six months.
Since then the benchmark has made up for most of
the losses. Amongst other things, the stabilisation of
the oil price helped. Possibly, a good many investors
were interested because dividend yields can be high
at times.
Serious crisis
It was ill fated right from start. A few hours after the
security debuted on the Swiss stock market, Deepwater Horizon, the oil-rig operated by Transocean,
caught fire, triggering a disaster of catastrophic
proportions in the Gulf of Mexico. The debacle was
not yet over in the courts, but the group already faced
other major challenges. First, interest in drilling
on the high seas fell in the wake of the US fracking
boom (see page 28 ff.). Then, Transocean had to cope
with the sharp drop in prices in the oil market. It
responded by bringing down the financial curtain
and posted a net loss of just under USD 2 billion
because of high write-downs. Shortly before the
Zug-based company presented its figures, CEO Steve
Newman had to resign.
The faltering member of the SMI® is an extreme
Priority given to dividends
According to Kepler Cheuvreux analysts, defending
dividends for Europe’s integrated oil and gas companies is a high priority. In addition to strong balance
sheets, selective asset sales, declining investments
and operational improvements would give companies the flexibility they need to do so. “We believe
that the sector is currently in much better shape than
in 2008, when three companies cut their dividends,”
wrote the experts in a study published at the end of
January. In fact, the asset managers see this priority
as being almost sacrosanct. Royal Dutch Shell, BP
and Total, the three biggest oil companies in Europe
in terms of their stock market value, all increased
their dividends in respect of 2014. Only Italian multinational ENI stepped out of line, announcing
a reduction in its dividend in mid-March and
25
COMPANY
Royal Dutch Shell
HEAD OFFICE
The Hague,
The Netherlands
EMPLOYEES
2015 P/E RATIO
94,000
14.0
ANALYSTS‘ RECOMMENDATIONS
13 Buy | 15 Hold | 2 Sell
MARKET CAPITALISATION
CHF 169
bn
COMPANY
BP
HEAD OFFICE
London,
United Kingdom
EMPLOYEES
2015 P/E RATIO
84,500
16.0
ANALYSTS' RECOMMENDATIONS
7 Buy | 20 Hold | 7 Sell
MARKET CAPITALISATION
CHF 131
bn
26 OIL
Europe’s biggest oil and gas corporations*: Royal Dutch Shell at the top
* Based on STOXX® Europe 600 Oil & Gas, as at 02.07.2015. Source: Thomson Reuters.
Historical data is not a reliable indicator of future trends.
Company
Country Market capitalisation (CHF bn.)
Royal Dutch Shell
NL
169
BP
GB
113
Total
FR
110
ENI
IT
62
BG Group
GB
53
Statoil
NO
52
Repsol
ES
23
Vestas Wind
DK
11
Galp Energia
PRT
9
OMV
AT
8
suspending a buyback on its shares. At the same
time, it trimmed planned investments for the period
2015 to 2018 by 17 per cent to around EUR 48 billion. This was not enough: a further EUR 8 billion is
to come from the sale of investments. How strict the
cuts have to be all depends on the cash breakeven oil
price, the nominal price above which the production
of black gold achieves a positive cash flow for the
company. Kepler Cheuvreux estimated the threshold
for the European sector this year at an average of
USD 110 per barrel. The breakeven figure could fall
to below the 100-dollar mark in 2016. While ENI
recorded an above-average value, an oil price
of USD 96 in 2015 would suffice for Royal
Is the BG
Dutch Shell to increase its liquid assets. The
acquisition putting commodity recorded an amount well below
this in the first quarter, but at the beginning
a strain on Royal
of March, credit-rating agency Moody’s
Dutch Shell?
deemed the European sector Croesus best
positioned, after world number one Exxon
Mobil, to cope with these adverse conditions. It said
both companies had reached a phase where a lower
level of investment would be necessary. Now, major
projects are close to completion and will
commence production over the next two years.
QUARTERLY 2 | 15
A real mega-deal
On 8 April, Royal Dutch Shell itself cast serious
doubt on this ‘accolade’ and announced the purchase
of British gas producer BG. With a price tag equivalent to around CHF 61 billion, this is the largest
takeover the energy sector has seen in over a decade.
If the competition authorities give it their blessing,
this would lead to the rise of a real giant in the sector.
Shell could increase its oil and gas reserves by 25
per cent, thereby closing the gap between itself and
Exxon Mobil. Management have had to dig deep into
their pockets for this. The bid represents a premium of more than half the value of the average BG
share price in the three months leading up to the
announcement of the transaction. “We considered
a variety of options, but BG was always high on our
list,” said Shell CEO Ben van Beurden, commenting
on the venture.
The acquisition would result in the group getting
access to major projects in Australia, Brazil, East
Africa, Egypt and Kazakhstan. This would enable it
to become the world’s leading supplier of liquefied
petroleum gas (LPG), an energy source that plays an
important role in Europe, since it could help reduce
dependence on Europe’s natural gas supplier, Russia.
While business with Russia relies on a huge pipeline
network, LPG can be transported by sea, rail or road.
Nevertheless, news of the takeover received a mixed
reaction in the stock market. “The deal is expected to
be an excellent fit for Shell,” wrote the brokerage firm
Jefferies in a commentary. Kepler Cheuvreux is of the
opinion that the Anglo-Dutch group is paying a high
price. “The BG acquisition is clearly affecting the
ability of Royal Dutch Shell to generate free cash flow
and earnings for shareholders in the medium term,”
was the worry expressed by the financial service
provider’s experts.
Historic parallels
Nevertheless, the transaction raises the question as
to whether the sector is on the brink of a fresh wave
of consolidation. Ultimately, the latest mega-deal is
reminiscent of the time around the turn of the millennium, when a barrel of Western Texas Intermediate oil sometimes cost less than USD 11. The industry
responded with numerous mergers and acquisitions.
BP concluded a deal with the established American
27
mergers and acquisitions are no guarantee of future
success, however spectacular they are. The industry
has to make an ever greater effort to tap the remaining oil reserves around the world, because despite all
efforts to date to increase in size and reduce costs,
these will remain the two key drivers in the future.
Besides the demand for energy being strongly linked
to the overall economic climate, the price of the most
important commodity in the world is a factor. In this
respect, the last few months have clearly demonstrated how quickly an industry can – quite literally – find
itself in hot oil.
company Amoco in 1998. Then in 2000, the British
multinational struck once again in the USA and
purchased Arco. BP has since divested the service
station operator. The current hegemony of Exxon
also harks back to that time. At the end of November
1999, the US multinational, which was formed in
the 1920s, merged with Mobil Oil, which closed the
gap with Transocean. In 2001, it merged with R&B
Falcon Corporation and became the world’s largest offshore drilling company. Today the security is
traded at a lower price than at the beginning of the
millennium, however. What this does show is that
2015 Cash breakeven oil price: Big differences
USD/bbl. Source: Kepler Cheuvreux.
Historical data is not a reliable indicator of future trends.
Repsol
191
ENI
116
Sektor
110
BP
104
Statoil
100
BG
100
Royal Dutch Shell
96
OMV
92
Total
0
77
20
40
60
80
100
Current oil price (Brent)
120
140
160
180
200
28 OIL
A country intoxicated by oil
The USA is back in the ranks of world oil superpowers
Controversial fracking production methods are literally
causing production in some parts of the country to explode.
T
he TV series ‘Dallas’ in the early
1980s gave Europe an image of the
US oil boom. The ultra-modern
Texas skyline appeared even in the
opening credits of the hit series, as
did derricks and pumps, thus depicting the connection between the energy source and the prosperity of
the region. However, at the time when J.R. Ewing,
the ruthless tycoon, was doing mischief on television,
the sector had already passed its prime. After five
decades of unabated growth, oil production in the
USA reached its peak in 1970 at 9.6 million barrels
per day. Then one by one, the wells started drying up.
In 2008, the oil companies were only
bringing five million barrels per day to
USA is close on
the surface.
However, a decade later, the USA
the heels of Saudi
returned to the ranks of the world's
Arabia.
oil superpowers. The US Energy
Information Administration (EIA)
estimates that production this year will reach around
nine million barrels per day. In 2016 the sector could
once again grow by around 100,000 units. This
would bring American production up to around half
a million barrels per day less than what Saudi Arabia,
the largest producer in the Organization of the
Petroleum Exporting Countries (OPEC), currently
produces.
QUARTERLY 2 | 15
Controversial cocktail
The new rush has a name: fracking. This technology
makes it possible to draw oil and gas from deposits
where after drilling, it is not capable of producing
more than a few bubbles on the surface on its own
and has to be extracted from the rock formations.
This is where there is a difference in the jargon used
between conventional fracking and non-conventional fracking. The conventional method is relatively
straightforward and is common in Europe too. It is
most often used in sandstone. Sandstone has large
pores which are also connected to one another, which
makes it relatively easy to extract the raw material.
It becomes more problematic when the natural gas
is stored in dense shale. This is a result of millions
of years of accumulation of sedimentary deposits of
originally fine mineral components. A combination
of a lack of oxygen, high pressure and higher temperatures has, over time, created crude oil and, later,
natural gas. Over the course of time, the hydrocarbons thus formed escaped, most often into conventional reservoirs. Non-conventional fracking, on the
other hand, is aimed at extracting what remains in
the bedrock – known as shale gas and oil. Gaining
access to such a source is not merely a matter of
drilling for or blasting the raw material. Rather, the
permeability of the rock has to be increased using a
hydraulic fracturing method that breaks up the shale
29
rock formation by injecting high pressure fluid into
it. This method causes fractures. To keep the fissures
open, a mixture of fracking fluid, water, proppants
and chemicals is used.
This cocktail is the focus of fierce debate in Europe
centred on the dangers of fracking. Critics fear the
contamination of soil and groundwater, and the
creation of hazardous waste. The Greens, and several
other organisations, have scored points with the
public with these arguments in the past year. They
submitted an initiative to the State Chancellery, containing 17,900 signatures, which lobbied for the ban
of the production of crude oil and natural gas from
non-conventional reserves in the Canton of Berne.
Irrespective of the protests, the volume of shale oil
reserves in Western Europe is relatively insignificant.
In any case, the region is not among the ten countries
which have the greatest potential worldwide (see
graph below).
move again in the other direction. The US oil industry
hardly need fear a renewed downward spiral.
US production of shale oil: Important prospecting regions
Mb/day EIA. Historical data is not a reliable indicator of future trends.
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
Center Texas Fracking
The ongoing debate on the European side of the
Atlantic can do no harm to the boom in the USA, in
any event. In several parts of the country, the pumps
are operating at full speed. The Eagle Ford Formation has developed into a true oil centre. It was just
five years ago that South Texas began horizontal
drilling. At the end of 2007, production from this
process typical of fracking operations reached a mere
60,000 barrels per day. According to the EIA, in
April 2015 daily production was in excess of 1.7
million barrels of crude oil per day. The Eagle Ford
Formation is thus not only responsible for more than
10 per cent of total US production, but the region
also operates on a par with Angola – the African
country which is OPEC’s twelfth member state.
Despite the steep price correction in black gold,
production in the area is still profitable. According
to a study published by J.P. Morgan Asset Management at the end of November 2014, the Eagle Ford
cash breakeven oil price was a little over USD 40 per
barrel. In other regions of the USA, managers in this
industry accustomed to success are more likely to
work up a sweat. For example, analysts estimate that
the breakeven threshold for the Bakken formation in
North Dakota is more than USD 60. If the estimate
were accurate, the third-largest fracking region in
the USA would not have earned any more money
since the end of 2014. So it is not surprising that the
energy sector is putting the brakes on costs across
the United States. Although somewhat belated, this
should also lead to a decrease in production volumes.
The prices for black gold, however, could rapidly
0.5
0
01/07
01/08
01/09
01/10
Eagle Ford (TX)
Bonespring (TX & NM Permian)
01/11
01/12
Bakken (MT & ND)
Wolfcamp (TX & NM Permian)
01/13
01/14
01/15
Spraberry (TX & NM Permian)
Niobrara-Codell (CO, WY)
Global shale gas reserves: China at its peak
Percentage of technically exploitable reserves. Source: EIA.
Historical data is not a reliable indicator of future trends.
4%
8%
Canada
9%
Russia
USA
7%
Mexico
10%
15%
Algeria
China
3%
Brazil
11%
Argentina
6%
5%
Australia
South Africa
30 FUTURE
PHARMA
A MARKET
WITHOUT
LIMITS
Around the globe, more and more people can afford to
buy medicine. Rising prosperity, especially in Asia, means
that health-care expenditure will be increasing.
The pharma industry will be profiting from this, and their
prospects are marvellous.
T
he latest deal in the pharma industry
is estimated at USD 21 billion. The
American pharma corporation
Abbvie intends to acquire Pharmacyclics, a manufacturer of cancer
drugs. Mylan, a US-based producer of generics,
wants to take over the Irish company Perrigo for
USD 29 billion. The German company Merck KGaA
announced the acquisition of lab equipment manufacturer Sigma-Aldrich for USD 17 billion, and the
latter’s stocks skyrocketed when the news broke.
These mergers and acquisitions illustrate that pharmaceutical companies are repositioning themselves
so the industry can face the challenges of a growing
QUARTERLY 2 | 15
market that is currently in transition. Last year the
merger between Pfizer and Astra-Zeneca failed by a
narrow margin; it would have been valued at USD
117 billion. “The trend towards further M&As will
keep going strong in the future,” states Peter Abdill,
managing director at the rating agency Moody’s, in a
conference call held in late April in New York about
the prospects of the pharma industry. The analysts at
Moody’s paint a rosy picture of the future. Credit Suisse recently raised the stock price targets of pharmaceutical companies such as Bristol-Meyers, Pfizer, Eli
Lilly and Merck & Co. The PEG ratio in the industry,
a way of measuring a stock’s potential growth, is
higher than that of the biotech industry, which was
31
Causes of death in 2010
Infectious diseases lost some ground, but more and more people are now
dying of age-related illnesses and lifestyle diseases
Tuberculosis
1.19 m
Meningitis
Sexually transmitted
infections (excl. AIDS)
Other
perinatal
infections
HIV / Aids
1.46 m
422,900
118,300
Syphilis
113,300
721,200
Hepatitis
AIDS and
tuberculosis
Measles
58,100
Diarrhoeal,
respiratory diseases,
meningitis and other
infectious diseases
1.44 m
81,400
Rota Virus
Chronic
bronchitis and
emphysema
Pregnancy
complications
2.9 m
254,700
Global death
statistics
in the year 2010
Pneumonia
827,300
Gastric ulcers
Musculoskeletal
diseases
Appendicitis
246,300
34,800
18,200
Chronic
respiratory
diseases
345,700
Cirrhosis
of the liver
1.03 m
Gastrointestinal
diseases
(excl. cirrhosis)
Neurological
disorders
Asthma
3.78 m
52.77 m
153,500
Multiple
sclerosis
26,400
684,100
Tetanus
507,900
Rabies
1.32 m
Malnourishment
61,300
2.81 m
Influenza
Tropical diseases
and malaria
2.23 m
Whooping cough
Lower
respiratory tract
infections
Malaria
1.16 m
859,700
Neonatal
disorders
5.28 m
250,900
Complications
among
premature infants
2.66 m
125,400
Diarrhoeal
diseases
Cholera
307,700
Traffic accidents
1.33 m
1.11 m
Pedestrians
1.27 m
461,000
Parkinson’s
111,100
Cyclists
Alzheimer’s /
other forms of
dementia
Epilepsy
177,600
485,700
Natural
disasters /
war
Falling
1.34 m
213,700
Rheumatic
heart diseases
Cardiomyopathy
83,300
Homicide /
suicide
540,500
Drowning
self-inflicted
injuries
345,100
883,700
Interpersonal
violence
Diabetes,
urinary /
hormonal diseases
403,900
349,100
Accidents
(excl.
traffic accidents)
456,300
2.73 m
2.12 m
Firearms
196,200
High blood pressure
Cardiovascular diseases
873,200
15.62 m
Knifes / blades
Psychological
disorders
231,900
126,700
Urinary
tract diseases
267,100
64,300
1.52 m
1.28 m
735,600
Drugs
77,600
Alcohol
111,100
225,400
Stroke
5.87 m
Heart attack
7.03 m
Prostate cancer
754,900
Cancer
7.98 m
256,000
Liver cancer
752,100
Breast cancer
438,700
Source: www.zeit.de/2013
Stomach cancer
Cervical cancer
Colon cancer
714,600
Burns
Poisoning
180,400
Lung cancer
Diabetes
melitus
Chronic
kidney diseases
Contact with animals
337,600
32 FUTURE
Living longer
Over the course of the past decades, the life expectancy of newborns has increased in 178 of 187 countries. Vaccinations protect us
from diseases, and aid programmes extend patients’ life spans.
Not only are we living longer, we are spending more time living in
good health.
New dangers
When a health risk causes a disease, the people affected may have
to spend years living with a disability. One way of quantifying this
issue is calculating the DALY, i.e. disability-adjusted life years. The
higher the value, the more years someone spends in poor health,
and the lower their quality of life.
The five greatest risks to health
1. High blood pressure
2. Smoking
73
worldwide
3. Alcohol abuse
4. Environmental pollutants
68
68
63
62
5. Nutritionally poor diet
These five conditions reduce a healthy life expectancy
1. Heart attack
2. Lower respiratory tract infections
58
3. Stroke
58
4. Diarrhoeal diseases
5. AIDS
54
1990
2010
Life expectancy
(in years at time of birth)
Years of life spent in good health
(as projected at time of birth)
long considered a lucrative investment opportunity.
This comes as no surprise: health is our most precious resource, and more and more people are able
to spend increasing amounts of money to protect it.
The world’s population is growing; prosperity is on
the rise, and it is accompanied by Western lifestyles
which contribute to the development of several
different diseases, most of which
are chronic.
A hundred years ago, most people
in Switzerland died of the flu,
tuberculosis or gastrointestinal
infections. Nowadays we die of ‘lifestyle diseases’.
Our cardiovascular systems are growing weaker, the
consequences of diabetes and obesity are creating
more and more problems for people, and the number
of cancer diagnoses is rising as our society ages.
Greater prosperity will
make sales explode.
QUARTERLY 2 | 15
Source: www.zeit.de/2013
All of this is very costly. Every year, around the world
more than USD 980 billion are spent on medicine.
These figures have doubled within the past decade.
For the year 2018, the consulting company Deloitte
has forecast international pharmaceutical sales of
USD 1,610 billion. “There will be strong market
growth, particularly in oncology and in treating
cardiovascular diseases,” Deloitte writes in its
industry report ‘2015 Global Life Science Outlook’.
The global economy is increasing at an annual rate
of nearly 1.5 per cent, while pharmaceutical sales are
expected grow by 6.9 per cent. This number is significantly greater than the amount spent on healthcare,
which rises by 5.2 per cent per year.
Demand is being propelled forward in particular by
prosperity in emerging and developing countries.
Some 20 per cent of the pharma industry’s revenue
33
already comes from the BRIC countries alone. If we
look at how much people spend on medication in different countries, we can estimate the potential sales
that will result from the combination of more widespread prosperity and a growing global population.
In the US, the world’s largest pharma market, the
per-capita expenditure on medicine is USD 1,020;
in Japan, the second largest market, it is USD 1,245,
whereas Germany comes in at USD 520.
China currently holds third place on the international pharma market, but its per-capita figure is only
USD 29. Greater prosperity will make sales explode.
The Chinese market is growing by 20% every year,
and nearly 40 per cent of the total growth on the
drug market comes from higher demand there.
Every pharma company is investing in China so that
they may be part of the market of the future.
Novartis is investing USD 1 billion in a new research
centre which will be the corporation’s third largest.
Bayer is spending EUR 110 million on a research and
development centre in Beijing.
In the past few years, major pharmaceutical companies have faced massive drops in sales among
their ‘cash cows’ as patents expired on their largest
sources of revenue. Inexpensive copycat products
have crowded the market. In the last five years alone,
pharmaceuticals manufacturers that have their own
research divisions have lost sales of CHF 120 billion,
according to consulting company IMS Health. The
blockbuster product Diovan brought Novartis nearly
USD 6 billion per year until its patent ran out. This
pattern will be interrupted for a while, however. “We
estimate that only a few active substances will lose
their patent protection in 2015/2016,” said Moody’s
Peter Abdill during the conference call.
Launching new products to fill the gap is difficult,
especially since the conditions for market approval
are growing more complex. It takes between eight to
twelve years and costs some USD 1.5 billion for a new
medication to go from the initial design to finding a
place on pharmacy shelves. It therefore comes as no
surprise that the speed of innovations in the pharma
industry has become significantly slower. 23 new
active ingredients were approved in the US between
2005 and 2010, whilst this number was closer to 50
within a comparable time frame a decade earlier.
“We believe that in the next few years we will see several breakthroughs in cancer treatment,” says Jerome
Brimeyer, Equity Sector Strategist at UBS in New
York. “They will translate into several top-selling
medications, some of which will have the potential to
reach a billion dollars or more in sales.”
Nevertheless, the trend is moving away from block-
RARE DISEASES UNUSUAL GENETICALLY-CAUSED
ILLNESSES WHICH AFFECT 30 MILLION PEOPLE.
Experts estimate that there are some
7,000 to 8,000 rare diseases around the
world. These are defined as diseases which
affect a maximum of five in 100,000
people. Some six to eight percent of the
general population has a rare disease,
and in Europe over 30 million people are
thought to be affected. Most of these conditions are genetic in origin and manifest
during infancy or childhood. They can
cause metabolic disorders in the blood and
immune system or lead to diseases in bodily tissues. One of the most well-known
examples is progeria – the condition when
children age quickly and prematurely.
Another is Morquio syndrome, in which a
disorder of the metabolism changes the
skeleton. – Those affected have a short
stature. In Switzerland some 1,000 people
have Morquio syndrome. Many physicians
seldom encounter these rare diseases,
which means the conditions are often not
diagnosed until the patient has invested
a great deal of time, experienced multiple
misdiagnoses and undergone an odyssey
through several doctors’ surgeries.
More information available at:
www.orpha.net
busters and towards drugs which treat rare diseases.
Several medications have been launched in recent
decades to treat the most widespread illnesses; as
an alternative, the pharma industry has now turned
to a category of illnesses known as rare diseases. In
the past it was not considered worthwhile investing
research money into finding treatments for patients
with conditions such as Barrett’s oesophagus or
Paget’s disease. The industry, however, has now
turned its attention to the range of rare diseases
which encompasses dozens of different conditions.
In Switzerland alone, for example, some 400,000
people have a rare disease. When the numbers of
patients around the globe are added up, the result is
a market which is still completely untapped. In early
May, the US-based company Alexion announced
its plans to take over the pharmaceutical company
Synagena. The deal will cost some USD 8.4 billion.
The reason for the M&A: Alexion, the market leader
in treating rare diseases, intends to expand its
competence in this area.
34 MADE TO MEASURE
PREMIUM BRAND
We need
innovations
QUARTERLY 2 | 15
35
Hamburg-based Montblanc is famous for
its writing instruments. But at its current
level of production, the Richemont Group
subsidiary feels underutilised.
36 MADE TO MEASURE
100 YEARS OF CRAFTSMANSHIP. When creations take shape.
Mr Lambert, for many years your company has been
known only as a manufacturer of classic writing
instruments. What does Montblanc stand for today?
You are now selling perfume, leather goods and even
wristwatches.
Each of our products needs three things: quality,
value, and technical excellence. This is actually quite
simple. It’s the common denominator within our
range.
Each of our
products
needs three
things:
quality,
value, and
technical
excellence.
You have made a career as a watch manager and
were head of A. Lange & Söhne and Jaeger-LeCoultre.
Why the penchant for watches?
Watches fit in well, because like writing instruments,
their manufacture requires extremely precise mechanical skill. Sometimes even the machinery and
tools are the same. For example, we polish writing
instruments and watches in much the same way.
Those are the technical aspects. To what extent do
your clienteles overlap?
Generally, those who value fine writing instruments
are also interested in watches. We see both as quality
companions for life; they share the same intrinsic
values.
Your timepieces are manufactured in Switzerland in
two different watch factories, each with its own
tradition and values – with the one in Villeret making the top-of-the-range timepieces and the other in
Le Locle focusing on the mid-range products.
What’s the reason behind that?
You know, we are merely doing what brands rich in
tradition such as Audemars Piguet, Patek Philippe
and Vacheron Constantin have already been doing for
QUARTERLY 2 | 15
a long time. At Montblanc we are writing this history
in the present day.
That sounds good, but what do you mean exactly?
Just like us, those watchmakers had their origins in
different companies with different outlooks. Over
time, they have grown together to form a single
company. That’s exactly what is happening with us.
I know this from my own experience at JaegerLeCoultre. The watch housings were originally produced by Jaeger in France, and the rest came from
Switzerland. For decades, until the 1970s, the watches were sold under both brand names: Jaeger and
LeCoultre.
How do the two factories differ?
At Minerva in Villeret, the timepieces undergo very
special treatment. We liken it to the way vegetables
were cooked before the advent of the agro-industry.
One watchmaker makes an entire timepiece; there is
no modern division of labour. On average, he needs
a year to do it. By contrast, even at Jaeger-LeCoultre
watches are manufactured at nine workshops
employing a total of 150 staff.
How do you increase sales figures for timepieces
manufactured in Villeret?
Good question. It is simply not possible. We can only
make between 30 and 40 grand complication watches each year, plus between 100 and 150 moving parts.
And that’s it!
Why do you have this spread between the luxury
timepieces from Villeret, such as the ‘Homage to
Nicolas Rieussec’ limited edition for EUR 26,900, and
37
the relatively more affordable entry-level timepieces
made in Le Locle, priced from EUR 1,290?
The very best in fine watchmaking gives us credibility. Remember that there is a transfer of knowledge
at play: the master watchmakers in Villeret share
their expertise with their colleagues in Le Locle, since
both factories use what is developed there – I have
merged development operations. It is the same for
the fountain pens here in Hamburg. We make the
‘Monte Celio’ for EUR 2.4 million as a unique piece,
but we also offer models priced at EUR 365. And
both are crafted by hand using the same skills.
Have we reached a turning point? Mechanical
watches have become more and more expensive over
the years; now the strong Swiss franc results in a
forced price increase – and yet the industry is talking
about cheaper models.
People like the late Günter Blümlein, who revived the
popularity of brands such as IWC and Jaeger-LeCoultre in the 1990s, awakened new interest in precision
watchmaking, especially with the first grand complication by IWC, which had a perpetual calendar but
also a comparatively reasonable price tag. Once a true
market had been created, the prices of manufactured
timepieces knew only one direction: upwards. Other
suppliers had no means of competing technically.
How does that relate to Montblanc?
We are able to offer complications – and can do so at
a reasonable price.
Reinventing yourself is important to you. As the
newly-installed CEO of Montblanc, you have already
asked your team to come up with a whole range of
new models within the space of just six months. Why
be so ambitious?
Because we enjoy such incredible privilege. Transforming a dream into a luxury item has a hint of
Faust or Prometheus about it! But how many can still
do that these days? Such craftsmanship is becoming
increasingly rare. This places an obligation on us to
continue to make the magic of that first encounter
with a new product possible. We need to add creative
innovation to technology.
Speaking of which— Given the ‘Apple Watch’, is the
younger generation not moving away from mechanical timepieces?
That is a key question for our industry, and one that
is difficult to answer. It was important to me that
Montblanc found an appropriate response. We have
Transforming a dream
into a
luxury item
has a hint
of Faust or
Prometheus
about it
Jérôme Lambert
JÉRÔME LAMBERT is now seeking to cause a sensation in
the watchmaking industry
responded with the e-Strap, which offers the functionality of a smart watch, but is simply an extension
attached to the strap of any watch. The Apple Watch
is an opportunity, because people who would otherwise have no other watch will buy it. Perhaps it is an
effective recruiting mechanism for our industry. The
good thing is that Apple has brought the clock – the
watch – back to the watch strap.
When will Montblanc offer a smart watch?
I always look to see who is involved in a particular
field of activity. And with Apple, there is a giant
involved in the smart watch. That is a battle one
cannot win. I could therefore not imagine engaging
in a battle with them. And you have to remember that
it is our desire to manufacture lifelong companions
which, by definition – and for technical reasons – a
smart watch is not. That’s why we launched the
e-Strap add-on, which can be replaced, and not an
actual watch.
What kind of timepiece does not exist yet that you
definitely want to create?
I cannot tell you that. But I do have some things
in mind. You’ll be surprised. We have a few things
planned. Yesterday, we spent half a day in a creative
workshop brainstorming on a product which we will
be launching in 2016. That’s the beauty of what we
do: we manufacture things that have been in existence for a hundred years, yet there are still no limits
to our creativity.
38 LOCATION
48 HOURS IN
MONACO
There is more to Monaco than its casino. It has a thriving
financial market, a wealth of leisure activities on offer, and one of
the most beautiful yacht harbours in the world.
T
Alejandro Pou Cuturi (CEO)
Christophe Spanier (CFO)
Leonteq Securities
S.A.M. Monaco was
founded in 2009. Its offices
in the Principality are in the
same building as EFG Bank.
The task of its twelve employees is to develop sales
of cross-asset derivatives in
the offshore sector. Capital
holdings are good, reserves
in the Principality are high,
and the foreign capital portion is minimal. The branch
is very successful. It is
managed by Alejandro Pou
Cuturi (CEO) and Head of
Sales, Christophe Spanier
(CFO).
QUARTERLY 2 | 15
alk about Monaco, and you’re
talking money. Monaco is an
important financial marketplace in Europe. It currently
has 38,000 residents, and the population
is growing slowly, but steadily. The eight
high-rise buildings currently being built
in the centre of Monaco are a very visible
symbol of this growth, and of the way the
Principality looks to the future. One major
project is to enlarge the land surface area
by wresting habitat from the sea. In the
next few years, extensions of Monaco into
the Mediterranean Sea will be built on
pile foundations. “ The salary structure in
Monaco is similar to that in France, except
that the conditions are better because social
security contributions are lower here,” says
Leonteq Monaco CFO and Head of Sales,
Christophe Spanier.
The German-born 35-year-old manager
helped to establish this exclusive location
and has been working for Leonteq since
2008, as has 41-year-old Leonteq Monaco
CEO, Alejandro Pou Cuturi. Chief among
Leonteq’s clients are private banks, portfolio management and asset management
companies and family offices. Leonteq
Monaco is also responsible for operations
in Latin America and Italian and Frenchspeaking Switzerland. For Christophe
Spanier, who studied in Bamberg, Oxford,
Madrid and Paris, both his workplace and
its location are a privilege. “The quality of
life here is incomparable.”
Monaco is also a great spot for tourists.
And it doesn’t have to be expensive either:
“I get a good lunch every day for EUR 20.
For the Swiss, prices here are even considered cheap.” What is expensive, however,
is accommodation, whether rented or
purchased, since millionaires like the tennis
player Novak Djokovic and racing legend
David Coulthard live here.
In addition to places that absolutely everyone visits, such as the famous Casino, there
are some beautiful spots that are not in the
guide books, says Alejandro Pou Cuturi,
who studied at the Ecole Nationale
Supérieure des Arts et Métiers (Paris)
and ESSEC (Paris). His tip regarding the
historic Grand Prix: every second year,
two weeks before the main Formula 1 race,
all the classic cars line up at the start line.
Entrance is cheap at EUR 20 to EUR 40 to
see the vintage cars from days gone by. Two
other highlights are the tennis tournament
in April and the yacht show at the end of
September. Christophe Spanier especially
enjoys jogging along the shoreline, between
Marquet Beach and La Mala Beach.
Forty-five minutes there and back is all it
takes to clear his head. He also enjoys the
excellent fish dishes nearby at Restaurant la
Pinède, where you can drink cocktails and
enjoy the sunset before dining. Monaco is
also a good destination if you’re travelling
with children. There’s a huge choice of
playgrounds, childcare facilities and things
to do.
39
MONACO AT A GLANCE
Official languageFrench
Type of government
Hereditary monarchy
System of government
Constitutional monarchy
Head of State
Prince Albert II
Area
2.03 km²
Number of residents 36,950
of which 78% are foreign
Population density 18,229 inhabitants/km²
CurrencyEuro
Independence
25 February 1489
(from France)
National day
19 November
Telephone country code+377
40 LOCATION
Tips for Monaco
BARS
DISCO
CONCERTS
EXHIBITIONS
OUTDOOR
Sass Café bar is famous for
always having something new
on offer and is always well
patronised by tourists and
Monegasques alike. There is
live music on Saturdays. An
ideal place for a few drinks
before you go to a club. Less
traditional is the Twiga,
because it was only opened last
year by Flavio Briatore. You’ll
see quite a few celebrities and
jet-setters here. You can arrive
here by boat too; Twiga has its
own private dock.
In the middle of the Sporting
Monte-Carlo complex you’ll
find Jimmy’z Sporting
Monte-Carlo, one of the
most famous nightclubs in the
world. Its seaside location and
modern design provide plenty
of visual stimulation. The turntables are regularly manned by
DJ greats such as Bob Sinclar
and David Morales. Zelo’s is
an exclusive, stylish nightclub
with a beautiful sea view. La
Rascasse is an excellent club
for the younger set with less
money to burn.
A concert for lovers of
schmooze music: superstar
Enrique Iglesias will be at
the Monte-Carlo Sporting
Summer Festival on 16
August 2015, giving a Latin
Night performance in the Salle
des Etoiles. If a heavier beat is
more your thing, then the German electro-pop pioneers from
1970, Kraftwerk, are a must
(cult hit: ‘Autobahn’). They are
performing on 11 November at
Sporting Monte-Carlo.
The Musée du Vieux Monaco
in the old town is open from
Wednesday to Friday between
11 am and 4 pm from June until
the end of October. Admission
is free. On exhibit are items
belonging to Monaco’s cultural
heritage, including ceramics,
paintings, furniture and
costumes. Car enthusiasts can
visit the Fontvieille terrace and
admire the remarkable Vintage
Collection of Prince Rainier
III of Monaco. The collection
comprises about 100 vehicles of
different ages.
If you want to stretch your
legs a little more, you should
definitely pay a visit to the
medieval village of Roquebrune-sur-Argens just
across the border in France.
With its hillside location and
view of Monaco, the village
provides an ideal escape from
the hustle and bustle of the
Principality. Beautiful walks are
also to be had in and around
Menton, with its many lemon
and orange orchards.
QUARTERLY 2 | 15
41
EATING OUT
RELAXATION
TIPS
TRANSPORT
SHOPPING
Les Privés, the classic French
restaurant at the Monte Carlo
Casino, offers an impressive
view of the Mediterranean
Sea and Cap Martin, without
the need to leave the gaming
rooms. The Vistamar has one
Michelin star and offers original
gourmet concepts created by
Head Chef Joël Garault.
Meat connoisseurs dine at the
BeefBar in Fontvieille, which
has, among other delights, the
finest Kobe beef on its menu.
Thermes Marins
Monte-Carlo resort is the
perfect place for an invigorating spa relaxation or fitness
session. You’ll find a great
combination of a professional
team, the right equipment and
a wide range of treatments
here. The various programmes
on offer are especially designed
for lasting relaxation. If you are
looking to relax in a more natural environment, you might
like the Japanese Gardens on
Avenue Princesse Grace.
April to September is the
best time to visit. In the autumn, however, it is often rainy.
The usual tip in Monaco is
10 – 15% of the bill. In larger
restaurants, the tip is often
included in the bill. For admission to the Casino,
you must be over the age of
21. The Casino is also a must
for art lovers. Its frescoes and
sculptures are unique. Elegant
attire is recommended
throughout Monaco.
Monaco is easily accessible.
There are six bus lines operated by the CAM – Compagnie
des Autobus de Monaco. Other
bus lines connect the city with
Nice (and its airport) and
Menton. Monaco’s SNCF underground railway station
also offers travel connections in
all directions. There is a ferry
between the harbours of Port
Hercules and Fontvieille. The
helicopter from Monaco to
Nice Airport is very popular
(EUR 125 per person).
The best place to shop is on
the quays. This is where you’ll
find designer boutiques such
as Dior, Chanel, Cartier and
Hermes as well as many souvenir shops. Monaco also has
outlet centres, where brand
clothing from the previous
season is sold at a discount.
There is a large mall called Le
Metropole Shopping Center.
The Pavillions Monte-Carlo
is another shopping centre
close to the Casino.
42 GIMMICKS
PIMP MY GRILL
AB DIE POST
BBQ o’clock! Taste is everything.
THE PERFECT AROMA
This smoky two-piece stainless steel box with its smoker box
and lid gives foods a delicious smoky flavour. The longer the
box stays on the barbecue, the stronger the aroma.
Approx. CHF 25.
FRESHLY PRESSED
Making the perfect burger patty is child’s play
with the burger press. The size can be adjusted to
suit your appetite and personal preference.
Approx. CHF 25.
www.williams-sonoma.com.au
An injection of flavour: this needle
enables you to inject the marinade
directly into the meat, for a
fuller flavour and shorter
marinating time.
Approx. CHF 18.
www.roesle.de
SMART BBQ
Making perfectly grilled meat is as easy as pie with this gadget.
Simply insert the probe into the food to be grilled, connect the
iGrill 2 via Bluetooth to your smart phone and read the inner
temperature on the display. Approx. CHF 120.
www.smartdevices.com
SPRING CLEANING
With the Grillbot, the bothersome chore of cleaning the
barbecue will soon be a thing of the past. The fully
automatic and reliable cleaning robot gets rid of all those
burnt bits and food waste. Approx. CHF 140.
www.grillbots.com
INTERNAL
43
UPGRADE
TO LEONTEQ
Leonteq Securities (formerly EFG Financial Products)
was founded at the end of 2007 with the original purpose
of issuing and selling structured products. In the meantime, the platform is now available to external partners
too, in line with our Partnerships strategy.
We have consciously set ourselves the goal of playing a key role
in shaping the market for structured products with transparency and a differentiated range of services. As an independent
outsourcing partner for investment product services, we are
unique in the industry and well positioned to develop the market further. Leonteq Securities has one of the most experienced
teams of experts in the business focused on customer service
across all areas of the company and supported by our state-ofthe-art, integrated IT infrastructure. With our modern, integrated platform, which is designed for flexibility, innovation,
customer service and transparency, we are a leader in the Swiss
market. We operate internationally, with a focus on Europe
and Asia.
ARE YOU INTERESTED?
In that case, we look forward to receiving your detailed
application.
hr@leonteq.com
SAVE THE DATE 15/09/2015
Leonteq’s Investor Day
9.00 a.m. – 4.00 p.m.
Park Hyatt Zurich
Beethovenstrasse 21, 8002 Zurich
24/09/2015
Brown-bag Lunch – University of Zurich
12.00 noon – 2.00 p.m.
University of Zurich
Rämistrasse 71, 8006 Zurich
The ordinary gives the
world its existence, the
extraordinary its value.
Oscar Wilde
Oscar Wilde (1854 – 1900)
was an Irish author, playwright and poet. He was one of the most controversial
writers of the early modern period. Wilde wrote witty society comedies and one
novel, “The Picture of Dorian Gray”.