Slide 1: CREDEM group '04-'06 plan results for 1Q '04
CREDEM CREDEM group ‘04 -’06 plan results for IQ ‘04 Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 1
Slide 2: 2004-2006 plan, 1st quarter '04, Appendices
CREDEM 2004 - 2006 plan 1st quarter ‘04 Appendices Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 2
Slide 3: Previous plan 2002-2005
CREDEM Previous plan 2002 - 2005 Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 3
Slide 4: 2002-2005 Plan - goals
CREDEM 2002 – 2005 Plan - goals CAGR CAGR Loans 18. 18.4% Deposits 10. 10.3% 65.2 16 14 44 15.4% 12 70 60 10 21.7 15.7 8 € bn 50 8.5% 40 12.4 6 € bn 30 29.5 4 8.0 20 21.3 7.4% 2 10 14.0 10.5 0 0 2001 2005 2001 2005 Direct AUC AUM Cost to Income + 7 pts. Profitability + 6 pts. 250 20.7 25 62.5% 55.4%
Slide 5: Guidelines of the '02-'05 plan
CREDEM Guidelines of the ‘02-’05 plan DEVELOPMENT DEVELOPMENTOFOF VOLUMES AND TERRITORIAL VOLUMES AND TERRITORIAL EXPANSION EXPANSION •Internal growth •Efficiency PROFITABILITY PROFITABILITYOF OFTHE THE DISTRIBUTION MODEL DISTRIBUTION MODEL ...were the main goals for the future that the Group had se
Slide 6: Growth goals achieved in the period '02-'03
Growth goals achieved in CREDEM the period ‘02-’03... Total Customer Business CAGR% 2002-2003 Vs 2002-2005 Over the period '02 – '03 Total Customer 80.9 11.7% 100 Business saw an average annual growth 64.9 11.7% rate of 11.7%, a figure that is completely in 80 line with the outlook for growth for th
Slide 7: Income trend compared to previous plan
… also in terms of profitability, despite the CREDEM substantial worsening of the scenario Income trend compared to previous plan (mln €) 2001 2003 CAGR% 2005 CAGR% Net interest income 297 308 1.8 426 9.4 The economic levels reached at the Non-interest income 468 511 4.5 743 12.2 end of ‘02-’03 peri
Slide 8: Positioning
CREDEM Positioning Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 8
Slide 9: The CREDEM group today
CREDEM The CREDEM group today 14th largest banking group in Italy 11th largest Asset Manager in Italy Total Customer Business 700,000 customers and 65 billion in total customer business Loans 18% AUC 37% 500 Branches and Corporate Centres Direct 22% 5,000 employees AUM 23% 20 companies covering all
Slide 10: 2000-2003 development
CREDEM 2000 – 2003 development New Business track record '00 / '03 Mkt Share of Total Deposits & Collections 1.6 2.7 1.5 4.0 1.3 +39% 1.2 13.3 bn € 1.2 4.2 2.4 1999 2000 2001 2002 2003 '00 '01 '02 '03 approx. Total customer business 19 bn € has increased by more than 50% Net loans increase track rec
Slide 11: Credem Stock
CREDEM Credem Stock 1997 1998 1999 2000 2001 2002 2003 No. shares (/000) 225,839 253,408 265,464 270,679 272,537 273,309 274,350 Net equity / share 2.07 2.34 2.27 2.55 2.86 3.08 3.23 EPS 0.22 0.26 0.17 0.51 0.39 0.40 0.35 ROE 11.6% 13.5% 8.5% 21.3% 14.6% 13.5% 11.1% Dividend / share 0.08 0.10 0.12 0
Slide 12: Scenario
CREDEM Scenario Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 12
Slide 13: Improved outlook for economic growth
Improved outlook for CREDEM Scenario economic growth 2002 2003 2004 2005 2006 MSCI Eu -30.9% 16.5% growth, with s light adjus tments from 2005 Mib It -23.7% 14.9% growth, with s light adjus tments from 2005 GDP Uem 0.9% 0.4% 1.3% 2.1% 2.3% GDP It 0.4% 0.4% 1.0% 2.3% 2.1% Resident deposits 10.2% 3.7%
Slide 14: Plan 2004-2006
CREDEM 2004 – 2006 Plan Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 14
Slide 15: Guidelines
CREDEM Guidelines 2004 - 2006 plan CENTRAL ROLE of the CORE BUSINESS Commercial Banking with strong Wealth Management Strategy Customers of medium-high standing in RETAIL with focus on Small Businesses and SMEs in the Corporate sector Goal •Excellence in VALUE CREATION •Extract VALUE from acquired p
Slide 16: Guidelines: core business and strengths
CREDEM Guidelines 2004 - 2006 plan CENTRAL ROLE of the CORE BUSINESS Strategy Commercial Banking with strong Wealth Management Customers of medium-high standing in RETAIL with focus on Small Businesses and SMEs in the Corporate sector Against a background of an uncertain and selective Group strength
Slide 17: Guidelines: excellence in value creation
CREDEM Guidelines 2004 - 2006 plan Goal •Excellence in VALUE CREATION •Extract VALUE from acquired potential After three/four years of sustained growth, aimed at achieving a position of balance in terms of market share in relation to the distribution structure, the Group intends to pursue the princi
Slide 18: Guidelines: targeted development
CREDEM Guidelines 2004 - 2006 plan •TARGETED DEVELOPMENT with focus on INCOME Drivers •SELECTIVITY in businesses and capital allocation •CENTRALITY of Group GOVERNANCE •Distribution policy more-focused with a greater attention to the rationalisation of "less profitable" branches. Targeted developmen
Slide 19: Guidelines: selectivity in business and capital allocation
CREDEM Guidelines 2004 - 2006 plan •TARGETED DEVELOPMENT with focus on INCOME Drivers •SELECTIVITY in businesses and capital allocation •CENTRALITY of Group GOVERNANCE •Centrality of Wealth Management, with further specialisation of the offer for private and affluent customers. •Development of Consu
Slide 20: Guidelines: governance
CREDEM Guidelines 2004 - 2006 plan •TARGETED DEVELOPMENT with focus on INCOME Drivers •SELECTIVITY in businesses and capital allocation •CENTRALITY of Group GOVERNANCE The goal is to arrive at a more effective and global definition of the mechanisms of Group Governance, strengthening Parent company’
Slide 21: New structure of Group Finance
CREDEM New structure of Group Finance 2004 - 2006 plan •Presence in strategic and high value CREDEM added businesses •Specialized centres of excellence for Investment Finance Independent businesses with greater reciprocal Banking BU Broker integration •Equity Capital Market Serving the group’s •Stoc
Slide 22: Main targets
CREDEM Main targets 2004 - 2006 plan CAGR CAGR Total income ‘03-’06 ‘03-’06 Operating costs 1,005 7.1% 606 5.1% 522 819 1,000 600 7.4% 237 4.3% 633 208 511 400 mln € mln € 500 6.5% 5.6% 369 372 200 314 308 0 0 2003 2006E 2003 2006E Net interest income Non-interest income Payroll costs Admin. Expense
Slide 23: Main targets: channels, deposits, capital
CREDEM Main targets 2004 - 2006 plan CAGR ‘03-’06 Distribution channels Deposits & collections 8.6% 68 +3 53 54 57 80.0 +5 5.8% 60.0 28.2 Mkt 38 43 23.8 14.4% 9.8% bn € +11 40.0 22.2 6.7% 462 473 14.8 4.5% 20.0 17.6 14.5 0.0 2003 2006E 2003 2006E Branches Corporate centres Points & shops Direct AUM
Slide 24: P&L
CREDEM P&L 2004 - 2006 plan The Total Income exceeds one billion euro in the 2006 forecast, with an average annual growth trend estimated at more than 7% (that (mln €) 2002 2003 2006E CAGR doubles the most recent trend). As in the past, Net interest income 304 308 372 6.5% the contribution expected
Slide 25: Profit Generation
CREDEM Profit Generation 2004 - 2006 plan Breakdown of Income statement contribution (mln €) 2002 2003 2006E % at 12/06 Total Income 800 819 1,005 . Captive 669 718 882 87.7% . Non captive 131 101 123 12.3% Operating Costs -516 -522 -606 . Captive -443 -450 -544 89.8% At the end of the three-year te
Slide 26: Distribution and Resources
CREDEM Distribution and Resources 2004 - 2006 plan Distribution structure 2002 2003 2006E Credembanca and others 429 440 451 The increase of 11 branches in the three- B.ca Euromobiliare 21 22 22 years is the result of the opening of 26 Branches 450 462 473 new branches in interesting areas and the C
Slide 27: Deposits
CREDEM Deposits 2004 - 2006 plan Total deposits will grow at a rate of slightly less than 9% annually. (mln €) Breakdown of deposits 2002 2003 2006E Within the field of direct deposits the Deposits 6,135 6,991 7,071 already substantial growth trend of bonds Bonds 3,676 4,601 7,232 Total direct w/o R
Slide 28: Lending
CREDEM Lending 2004 - 2006 plan Lending is predicted to grow at rates that (mln €) 2002 2003 2006E CAGR Customer loans 9,903 11,052 13,244 6.2% are closer to the forecasted market trend . short-term 5,199 5,568 6,644 overall. Moreover, the increase based on . medium-term 4,704 5,484 6,600 average pr
Slide 29: 1st quarter '04 Key figures
CREDEM Key figures 2004 - 2006 plan 1st quarter ‘04 Appendices Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 29
Slide 30: Increasing revenues, decreasing cost to income
Increasing revenues CREDEM Key figures decreasing cost to income Total income Operating costs 210.3 +7.8% 132.0 137.4 +4.1% 195.0 250 150 200 +7.9% 55.0 57.7 +4.9% 119.5 128.9 100 150 mln € mln € +7.8% +3.5% 100 77.0 79.7 50 75.5 81.4 50 0 0 1Q03 1Q04 1Q03 1Q04 Net interest inc ome Non-interest inco
Slide 31: Key figures: confirmation of growth trend
CREDEM Key figures Confirmation of growth trend Customer loans Deposit & Collections + 6% 11,8 52.2 +13.7% 11,2 48.7 15.0 -9.6% 0.7 0.7 60 +11.4% 10.0 22.5 23.0 +19.0% +8.1% Mkt bn € 11.2 bn € 10.4 net repos +4.2% 30 12.7 15.1 +12.1% Mkt 5.0 +8.1% 13.0 14.5 0.0 0 1Q03 1Q04 1Q03 1Q04 Total cash loans
Slide 32: Key indicators
CREDEM Key indicators 2002 2003 1Q04 1.5% 1.6% 1.6% growth MS deposits MS loans 0.9% 1.0% 1.0% ROE 13.5% 11.1% 15.1% profitability Net interest income / total income Non-interest income / total income 38.0% 62.0% 37.6% 38.7% 62.4% 61.3% Operating costs / total income 64.5% 63.7% 65.3% efficiency Ope
Slide 33: Rising revenues
Rising revenues CREDEM Total Income Substantial increase in Commissions (€ mln) 2003 1Q03 1Q04 % yoy Net interest income 307.7 75.5 81.4 7.8% Total Income +7.8%. Spread 2.79% 2.99% 2.69% -30bp Net commissions 342.8 75.2 92.9 23.5% Net interest income improved by 7.8% on . of which "management and br
Slide 34: From Total income to Net profit
CREDEM From Total income to Net profit Profitability on the rise (€ mln) 2003 1Q03 1Q04 % yoy Total income 818.9 195.0 210.3 7.8% Gross operating profit +15.7% Payroll costs -313.5 -77.0 -79.7 3.5% Administrative expenses -208.2 -55.0 -57.7 4.9% Operating costs -521.7 -132.0 -137.4 4.1% Operating pr
Slide 35: The strength of core business
The strenght of CREDEM Profit Generation core business Breakdown of gross operating profit contribution % at (mln €) 2003 1Q03 1Q04 31/03/04 Total Income 818.9 195.0 210.3 . Captive 711.6 162.9 185.3 88.1% . Non captive 107.3 32.1 25.0 11.9% Operating costs 521.7 132.0 137.4 . Captive -445.8 -113.5
Slide 36: Distribution and Resources
CREDEM Distribution and Resources CREDEM Group branches and market share Distribution structure 2003 1Q03 1Q04 1 64 0.1 % Credembanca and others 440 434 440 1.1 % 25 B.ca Euromobiliare 22 21 22 12 0.7 % 0.5% Branches 462 455 462 127 4 4.0 % Corporate Centres 38 38 39 0.5 % 10 3 0.5% 3 0.3 % Points a
Slide 37: Deposits: strong growth in AUM
CREDEM Deposits Strong growth in AUM Breakdown of deposits 2003 1Q03 1Q04 % yoy Deposits 6,991 6,273 7,254 15.6% Bonds 4,601 3,844 4,417 14.9% Total direct w/o Repos 11,592 10,117 11,671 15.4% Repos 2,862 2,851 2,865 0.5% Net inflows at April ‘04 show a balance of Total direct deposits 14,454 12,968
Slide 38: Lending: retail and SMEs drive the growth
RETAIL and SMEs CREDEM Lending drive the growth Loans progressed, reflecting a growth of 8% (+10% at average principal). (mln €) 2003 1Q03 1Q04 % yoy Customers loans 11,052 10,103 10,922 8.1% Repos 99 325 248 -23.7% •The comparison at average principals shows Total cash loans 11,151 10,428 11,170 7.
Slide 39: Other Risks: market risk under control
CREDEM Other Risks Market risk under control Market risks (mln €) 2002 2003 1Q04 VaR banking and trading book (99% 10 days) Market risk is primarily focused on Credem Banca Credembanca and Abaxbank. average 1.2 2.8 2.4 maximum 3 4.8 3.7 Overall, risks are limited and remain Abaxbank virtually unchan
Slide 40: Appendices
CREDEM 2004 - 2006 plan 1st quarter ‘04 Appendices Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 40
Slide 41: Appendices
CREDEM Appendices Information on the Group: •Capital structure •Group structure •Business areas Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 41
Slide 42: Capital structure
CREDEM Capital structure Pact of 226 > 2,900 shareholders shareholders Main shareholders %sul c.s. Famiglia Maramotti 35.5% Pictet Cie 4.9% Eredi Savioli 2.9% Finc orrad 2.1% Allianz Subalpina 1.7% 72.4% 27.6% CREDEMHOLDING 73.7% 26.3% CREDEM Investor Relations - ‘04-’06 plan and IQ’04 results - Mil
Slide 43: Group Structure
CREDEM Group Structure CREDEMHOLDING 73,7% CREDEM 100% Banca Euromobiliare 100% Credemleasing Euromobiliare 100% Credemtel 100% Fiduciaria 98,5% Euromobiliare A.M. 100% Credemfactor Banca del Garda 51,2% Credimmobili 100% S.G.R. 100% Euromobiliare 50% Azuritalia Ass.ni Credem International 100% Maga
Slide 44: Business Areas
CREDEM Business Areas Commercial Banking Wealth Management Investment Banking Other business CREDEM Vita (*) FIDUCIARIA Spa Assicurazioni(*) (*) CORPORATE FINANCE (*) (*) companies not included within the Banking Group Investor Relations - ‘04-’06 plan and IQ’04 results - Milan - May 28th, 2004 44