1 Group structure and shareholders

1.1 Group structure

1.1.1 Description of the operative Group structure

The Liechtensteinische Landesbank is a public company (“Aktiengesellschaft”) according to Liechtenstein law. It is the parent company of the LLB Group, which is based on a parent company structure.

The LLB Group has an organizational structure based on market divisions which is geared towards client and market needs. Besides the three market divisions “Retail & Corporate Banking”, “Private Banking” and “Institutional Clients”, the management structure encompasses the functions of Group Chief Executive Officer (Group CEO), Group Chief Financial Officer (Group CFO) and Group Chief Operating Officer (Group COO).

The rules of procedure adopted by the Board of Directors and, in particular, the “Funktionendiagramm” (functions diagram) in the Appendix ensure the proper conduct of business, the appropriate organization as well as the uniform management of the LLB Group. In accordance with the functions diagram, the Board of Directors, the Chairman of the Board of Directors, the Committees of the Board of Directors, the Group CEO and the Group Executive Board are decision-making authorities.

The functions of the Board of Directors and the Group Executive Board of the LLB Group are combined with those of the Board of Directors and Board of Management of the LLB parent company. Within the scope of the duties and powers defined by the rules of procedure and the functions diagram, the aforementioned authorities can make decisions and issue rulings that are binding for both the parent company and the LLB Group companies – but taking into consideration the provisions of current local law applicable to the individual Group companies.

The members of the Group Executive Board are represented on the Boards of Directors of the consolidated companies. Either the Group CEO or a member of the Group Executive Board serves as the Chairman of the Board of Directors of a subsidiary company. The following companies are exceptions to this rule: Bank Linth LLB AG and swisspartners Investment Network AG. At Bank Linth LLB AG, a member of the Group Executive Board serves as the Vice Chairman.

The organizational structure of the LLB Group as at 1 January 2015 is shown in chapter Organization. The detailed segment reports are shown in chapter Segment Reporting and in the Notes to the consolidated financial statement.

1.1.2 Listed companies included in the scope of consolidation

The Liechtensteinische Landesbank, with its headquarters in Vaduz, is listed on SIX Swiss Exchange. As at 31 December 2014, market capitalization stood at CHF 1’232.0 million (30’800’000 bearer shares at a nominal value of CHF 5.00 at a year-end price of CHF 40.00).

Bank Linth LLB AG, with its headquarters in Uznach, in which the Liechtensteinische Landesbank holds a majority equity stake of 74.2 percent, is also listed on SIX Swiss Exchange. As at 31 December 2014, market capitalization stood at CHF 409.1 million (805’403 registered shares with a nominal value of CHF 20.00 at a year-end price of CHF 508.00).

Company

Reg. Office

Listed on

Market capitalization (in CHF thousands)

Stake (in %)

Segment

Security number

ISIN number

Liechtensteinische Landesbank AG

Vaduz

SIX Swiss Exchange

1'232'000

 

Main Standard

3019524

LI0030195247

Bank Linth LLB AG

Uznach

SIX Swiss Exchange

409'145

74.2

Mid- / Small-Cap Shares

130775

CH0001307757

1.1.3 Unlisted companies included in the scope of consolidation

Details of the unlisted companies included in the scope of consolidation (company, registered office, activities, share capital and equity interest) can be found in the Notes to the consolidated financial statement of the LLB Group in the table “Scope of consolidation”.

1.2 Major shareholders

The Principality of Liechtenstein is the majority shareholder of the Liechtensteinische Landesbank. The Law on the Liechtensteinische Landesbank states that – in terms of capital and voting rights – the Principality of Liechtenstein must hold at least 51 percent of the shares. These may not be sold.

At the end of 2014, the Principality’s equity stake in the shares of the Liechtensteinische Landesbank remained unchanged at 57.5 percent. Detailed information about the development of this equity stake can be found at: www.llb.li/capital+structure. As at 31 December 2014, Thornburg Investment Management Inc. held a total of 1’150’000 LLB shares, which corresponded to an equity stake of 3.7 percent. Less than 0.1 percent of the shares were held by members of the Board of Directors and the Group Executive Board, while the LLB Group held 6.4 percent of its own shares. This share proportion served to secure the convertible bonds of CHF 270 million that were due in April 2011.

The remaining bearer shares were in free float, whereby none of the other shareholders held more than three percent of the share capital. There are no binding shareholder agreements.

1.3 Cross participations

There are no cross participations between the Liechtensteinische Landesbank and its subsidiaries or third parties.

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