Allianz SE · XETR:ALV
Allianz — Debt Investor Presentation (February 2004)
31 slides from Allianz's debt investor presentation, Feb 16, 2004
Slide 1: Perpetual Subordinated Hybrid Capital Securities
Paul Achleitner, CFO Perpetual Subordinated Hybrid Capital Securities Roadshow Europe February 2004
Slide 2: Agenda
Agenda I. Key transaction and investment highlights 2 II. Financial strength 5 III. Our strategy 11 IV. Transaction overview 22 V. Appendix 25 0401_OS_Roadshow_Europe_22IB 16.02.04 1
Slide 3: Key transaction highlights
I. Key transaction and investment highlights Key transaction highlights Issuer: Allianz Aktiengesellschaft 1 EUR 1bn Benchmark Size 2 Perpetual Non Call 10 Years 3 Fixed to floating with 100 bps step-up after year 10 4 Mandatory deferral trigger related to IFRS-earnings with ACSM* 0401_OS_Roadshow_E
Slide 4: Key investment highlights
I. Key transaction and investment highlights Key investment highlights Value drivers 1 A worldwide leading insurer and global asset manager 2 Very strong ratings 3 High solvency, comfortable economic capital surplus 0401_OS_Roadshow_Europe_22IB 4 3+1 program implemented to return to track record in
Slide 5: Agenda
Agenda I. Key transaction and investment highlights 2 II. Financial strength 5 III. Our strategy 11 IV. Transaction overview 22 V. Appendix 25 0401_OS_Roadshow_Europe_22IB 16.02.04 4
Slide 6: Solvency ratio of Allianz Group
II. Financial strength Solvency ratio of Allianz Group at 212% (as per 30/09/03, in EUR bn) Group solvency* Based on a volume of the new issue of EUR 1bn solvency ratio would 13.7 Surplus have been 220% 26.0 Property / Casualty: 5.5 12.3 Life / Health: 6.8 0401_OS_Roadshow_Europe_22IB Maximum Requir
Slide 7: EUR 10bn economic risk capital surplus
II. Financial strength EUR 10bn economic risk capital surplus 30/09/2003 30/09/2003 Allocated economic risk capital Available risk-bearing funds Allianz Group (Internal stochastic model; Shareholders’ equity 26.4 confidence level 99.96%) Minority interests 8.2 Property / Casualty 17.4 Hybrid capital
Slide 8: EUR 10bn surplus economic risk capital - strong increase since end of 2002
II. Financial strength EUR 10bn surplus economic risk capital - strong increase since end of 2002 Allocated economic risk capital Allianz Group Available risk bearing funds ... thereof IFRS shareholders’ equity (EURbn) Surplus of EUR 10.2bn Surplus of EUR 8.5bn Gap of EUR -1.7bn Positive Positive de
Slide 9: Very strong ratings
II. Financial strength Very strong ratings Ratings Standard & Poor’s Moody’s A.M.Best Insurer financial strength AA-* -- A+ Counterparty credit AA- * -- -- -- Senior unsecured debt AA- Aa3 aa-* Subordinated debt A A2 -- 0401_OS_Roadshow_Europe_22IB Commercial paper (short term) A-1+ P-1 -- *) Negati
Slide 10: Balanced maturity structure of issued bonds
II. Financial strength Balanced maturity structure of issued bonds1) (adjusted for new bond) in EUR m Total volume outstanding: EUR 12,299 m2) Subordinated Bonds Senior Bonds Exchangeables 2,642 2,200 2,000 920 1,632 1,075 1,100 900 New 1,722 450 1,100 0401_OS_Roadshow_Europe_22IB 0 900 1,000 400 20
Slide 11: Agenda
Agenda I. Key transaction and investment highlights 2 II. Financial strength 4 III. Our strategy 11 IV. Transaction overview 22 V. Appendix 25 0401_OS_Roadshow_Europe_22IB 16.02.04 10
Slide 12: Overview: Key figures
III. Our strategy Overview: Key figures1 International financial services provider Property/Casualty Life/Health Banking Asset Management § Total revenues2: § Total revenues2: § Net revenues2: § Total revenues2: EUR 42.5bn EUR 40.1bn EUR 7.6bn EUR 2.3bn in % Market share3 in % Market share3 Third pa
Slide 13: Earnings recovery based on execution of 3+1 program
III. Our strategy Earnings recovery based on execution of 3+1 program EPS (in EUR) 12.32 8.29 7.87 6.40 5.71 3.84 4.08 WTC 2.49 1.73 1.28 0401_OS_Roadshow_Europe_22IB flood, impairments, losses Dresdner Bank -4.44 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 9M 2003 16.02.04 EPS 1990 - 1996: Ba
Slide 14: Quarterly profits show recovery from shocks in 2002
III. Our strategy Quarterly profits show recovery from shocks in 2002 Impacts on quarterly profit Evolution of quarterly net income (EUR m) 3.000 3,000 § 2Q 2002 and 3Q 2002 results 2.000 2,000 depressed by Central European floods, weak capital markets and 1.000 1,000 asbestos reserve strengthening
Slide 15: Promise of new management team: Back to basics and build the future
III. Our strategy Promise of new management team: Back to basics and build the future “3 plus 1” program promises Back to basics Significant challenges 2002 Substantially strengthen operating § Insufficient operating 1 profitability profitability and important turnaround cases 2 Protect and enhance
Slide 16: Delivered: Operating profit increased by EUR 3.4bn
III. Our strategy 1 Delivered : Operating profit increased by EUR 3.4bn Operating profit 9M 2003 Changes vs. 9M 2002 P/C 1,847 1,643 L/H 789 126 Banking -69 1,469 AM 528 155 Consolidation -105 -24 0401_OS_Roadshow_Europe_22IB Group 2,990 3,369 Considerable improvements across all segments 16.02.04 1
Slide 17: Dresdner Bank: Positive operating profit in ongoing business
III. Our strategy 1 Dresdner Bank1): Positive operating profit in ongoing business and improved capital ratios (in EUR m) Operating profit (as per 30/09/03) 282 304 183 219 -5492) -383 -163 PBC CB DrKW Corporate Σ ongoing IRU Total items business Core capital ratio3) Total capital ratio3) Net income
Slide 18: Delivered: Capital base protected and enhanced
III. Our strategy 2 Delivered: Capital base protected and enhanced The challenge § Maintain very strong adequate rating § Further improve capital position Achieved so far Targets § Successful rights issue: EUR 4.4bn fresh capital § Align all processes according to internal economic risk capital § Im
Slide 19: Delivered: Divestments 2003
III. Our strategy 3 Delivered: Divestments 2003 Company Country Announced Transaction Pioneer Allianz Philippines January Sale 1) Advance Organization February Re-integration SRIR Luxembourg March Run-off MBA Brunei May Sale Allianz Parkway Singapore May Sale Status December 2003 2) AGF Chile Vida J
Slide 20: Delivered: Capital allocation optimized
III. Our strategy 4 Delivered: Capital allocation optimized Dividends = CoC Debt Profitable service subsidiaries Holding Profits > CoC Allianz AG expenses Restructuring Dividends < CoC Dividends cases Growth Capital External segments growth Assigned capital (risk adjusted capital plus excess capital
Slide 21: Wrap-up: Set to capitalize on growth opportunities
III. Our strategy Wrap-up: Set to capitalize on growth opportunities Takeaways § P/C: Operational discipline on track § L/H: Lower impairments - risks addressed § Banking: Strong relative improvement § Asset Management: Operational performance as planned Value creation Capitalizing on strength Focus
Slide 22: Agenda
Agenda I. Key transaction and investment highlights 2 II. Financial strength 5 III. Our strategy 11 IV. Transaction overview 22 V. Appendix 25 0401_OS_Roadshow_Europe_22IB 16.02.04 21
Slide 23: Terms and Conditions
IV. Transaction overview Terms and Conditions Issuer Allianz Aktiengesellschaft (“Allianz”) Securities Perpetual Subordinated Hybrid Notes Junior to all senior and dated subordinated obligations Status Pari passu to perpetual subordinated obligations Offering size EUR [l] million Years 1-10: [l]% pa
Slide 24: Terms and Conditions (continued)
IV. Transaction overview Terms and Conditions (continued) Following an IFRS Event: – coupon is paid using the ACSM, or Mandatory deferral – coupon is cancelled if on the next ordinary General Shareholders Meeting (“AGM”) following the interest payment date no dividends are declared “IFRS Event”: ave
Slide 25: Agenda
Agenda I. Key transaction and investment highlights 2 II. Financial strength 5 III. Our strategy 11 IV. Transaction overview 22 V. Appendix 25 0401_OS_Roadshow_Europe_22IB 16.02.04 24
Slide 26: Timeline of events upon an IFRS Event
V. Appendix Timeline of events upon an IFRS Event Interest Payment General Shareholders e.g. T - 15 days Date (“T”) Meeting (“AGM”) AGM + 1 (e.g. 24 Nov, 2004) (e.g. 15 Dec, 2004) (May 2005) Optional IFRS Event Pay using Payment takes place ACSM using ACSM* Mandatory Defer payment No Payment Dividen
Slide 27: Key figures and ratios: Overview
V. Appendix Key figures and ratios: Overview (in EUR m) 9M 2002 9M 2003 ∆ 03/02 3Q 2003 Total revenues1) (EUR bn) 69.0 71.1 +2.9% 23.9 Operating profit -379 2,990 n.m. 871 Profit before goodwill amortization, taxes and minorities -241 1,206 n.m. 842 Property / Casualty 6,3862) 1,634 -74.4% 710 Life
Slide 28: Considerable improvements in operating profit across all segments
V. Appendix Considerable improvements in operating profit across all segments (in EUR m) Asset Con- Total P/C L/H1) Banking Mgmt. solidation 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 02 03 02 03 02 03 02 03 02 03 02 03 Profit before taxes 6,115 1,344 177 515 -422 -991 -262 -104 -6,708 -454 -1,100 311 and
Slide 29: Very strong ratings
V. Appendix Very strong ratings “Capitalization at Allianz’s insurance operations is still satisfactory but has weakened substantially and is no longer the strength that it had been historically... Allianz continues to demonstrate a superior business position in premier league of international finan
Slide 30: Investor Relations
V. Appendix Investor Relations Oliver Schmidt Tel. +49 (0) 89 3800-3963 e-mail: oliver.schmidt@allianz.com Head of Investor Relations Susanne Arheit Tel. +49 (0) 89 3800-3324 e-mail: susanne.arheit@allianz.com Stefan Engelke Tel. +49 (0) 89 3800-18124 e-mail: stefan.engelke@allianz.com Peter Hardy T
Slide 31: Disclaimer
V. Appendix Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on managemen