Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Investor Day (2010)
172 slides from Dexia Holding SA's investor day presentation, Dec 1, 2010
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Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein are provided for information purposes only and may not be complete. It does not constitute an offer to sell or the solicitation to buy any securities issued by Dexia or any entity of the Dexia Group. This presentation contains a numbe
Slide 3: Dexia 2014: A Retail Group with 10 million clients
Dexia Group Dexia 2014: A Retail Group with 10 million clients Pierre Mariani CEO
Slide 4: Dexia 2014: A Retail Group with 10 million clients
Dexia 2014: A Retail Group with 10 million clients Financial restructuring 1 Scaled down non-commercial revenue and development of commercial franchises Rebalancing the Group towards Retail 2 Significant investments in Retail franchises Capturing Retail upside in a fast growing market 3 Disciplined
Slide 5: Increased weight of Retail and Commercial activities
Dexia 2014: A Retail Group with 10 million clients Increased weight of Retail & Income evolution (% of total) Commercial activities, accounting for around 60% of 2014 revenues: ~4 m clients in Belgium & Luxembourg Non commercial PWB ~6 m clients in Turkey revenue ~18% Divestitures Profitable and
Slide 6: Financial restructuring: Scaled down non-commercial revenue
Financial restructuring: Scaled down non-commercial revenue and development of commercial franchises October 2008-2011 Income evolution (EUR bn) - Key objectives - Manage and reduce the Legacy burden 6.9 Stabilize, and reinvest in core client ~6.3 franchises Non commercial revenue ~5.5 Adapt our cos
Slide 7: Financial restructuring: Well on track to reach short-term funding commitment
Financial restructuring: Well on track to reach short-term funding commitment by 2014 Short-term funding need (EUR bn) Short-term funding (% of total balance sheet) Bonds & loans sales of EUR 45 bn between October 2008 and September 2010 Medium- and long-term funding issuance of EUR 80 bn between Oc
Slide 8: Financial restructuring: Non-commercial revenue largely decreased by end 2011
Financial restructuring: Non-commercial revenue already largely decreased by end 2011 2007-2011 Income evolution (EUR bn) - Main drivers of income evolution - - Reduced risk profile on proprietary trading and size of portfolios: ~EUR -440 m in 2010-2011E Average vs. 2007 1.6 - Cost of state guarante
Slide 9: Rebalancing the Group towards Retail
Rebalancing the Group towards Retail: Significant investments in Retail franchises Rebalance core businesses Income evolution (EUR bn) PWB re-focused on core franchises and normalized funding structure Commercial drive maintained in Turkey throughout the crisis E.g. 180 new branches opened in
Slide 10: Capturing Retail upside: Disciplined and sustainable growth in Turkey
Capturing Retail upside in a fast growing market: Disciplined and sustainable growth in Turkey Manage Retail growth in Turkey Income evolution (EUR bn) Gradual increase of branch opening pace to reach 7% share of doors CAGR 2012-14E Increased Retail contribution (representing 63% of local net in
Slide 11: Achieving operational excellence
Achieving operational excellence: Efficiency measures, intra-group synergies and industrialisation Estimated EUR 600 m cost reduction Refocus on core franchises over 2008-2011 target achieved by end 2011 Downsizing of PWB International Group cost base (EUR m) Divestment of Entities (K. Austria,
Slide 12: Dexia teams sharing clear strategic ambitions
Dexia teams sharing clear strategic ambitions Retail & Commercial Be a reference bank for customer satisfaction Banking Belgium and Lux. Develop intra-group synergies Retail & Commercial Become the best alternative to largest banks Banking Turkey Reach excellence in operational management Belgium: M
Slide 13: Dexia Group Target 2014
Dexia Group Target 2014 Ambition 2014 Target 2012 Stable pre-tax income versus 2009: ~EUR 1.4 bn A robust Solid commercial dynamic: 1 Commercial income1 +4% p.a. (09-12) financial structure ST funding/Total balance sheet at/below 15% Strong solvency: Core Tier 1 at ~14%2 Rebalanced activities 2 towa
Slide 14: Investor Day 2010 - Agenda
Investor Day 2010 - Agenda 11h00 - Finance - P. Rucheton, CFO Dexia 2014: A robust financial structure 11h40 – Balance sheet & Legacy - P. Rucheton, CFO Deleverage balance sheet and manage the Legacy 12h05 - Public and Wholesale Banking - P. Poupelle, Head of PWB Renew with sustainable scale a
Slide 15: Dexia 2014: A robust financial structure
Finance Dexia 2014: A robust financial structure Philippe Rucheton CFO
Slide 16: Economic scenario: Slow recovery in Europe, dynamic growth in Turkey
Economic scenario: Slow recovery in Europe while dynamic growth in Turkey GDP growth (%) Interest rates (%) Europe US Turkey Exchange rates Inflation rate (%) Equity indices 2.0 8% 10% 8 1.5 6 6 1.0 2010 4 2010 2011 2011 4 0.5 2012 2 2012 2013 2013 2 2014 2014 0.0 0 0 EUR vs. USD EUR vs. TRY Europe
Slide 17: Dexia 2014: Resized and rebalanced balance sheet
Dexia 2014: Resized and rebalanced balance sheet Increasing share of stable and Reducing Group total balance sheet long-term resources Restated balance sheet evolution (Base 100 = 2008, %) Funding mix evolution (%) Excluding change in fair value of derivatives, change in posted cash collaterals and
Slide 18: Key drivers of balance sheet evolution 2009-2014
Dexia 2014: Key drivers of balance sheet evolution between end 2009 and end 2014 Key drivers of assets evolution Key drivers of liabilities evolution Deleverage Deposits base Active sale of Legacy ~EUR -80 bn of which -75 for Increase in RCB and PWB and Core assets the Legacy ~EUR +35 bn deposit bas
Slide 19: Balance sheet size impacted by interest rates and FX movements
Balance sheet size impacted by interest rates and FX movements Increase in collateral and fair value of Comments derivatives Derivatives MTM and Collateral Impact on B/S (EUR bn) Derivatives globally hedging Group structural exposures EUR +36 bn Assets mostly long-term fixed rate while liabilities
Slide 20: LT wholesale funding program aligned to Group needs
LT wholesale funding program aligned to Group needs and market appetite Production realigned with LT wholesale Comments funding program Annual LT funding program vs. Annual PWB production (EUR bn) Until 2008, Dexia heavily reliant on 80 wholesale long-term funding, but annual LTF program not coverin
Slide 21: Placement of Group benchmark issues supported by expanded investor base
Placement of Group benchmark issues supported by an expanded investor base DMA benchmark issues per period (%) Changing investor cartography DMA pre-crisis (2005-08) DMA post-crisis (2009-10) Solid appetite for covered bonds, but from changing geographies Investors refocus on their regional issuer
Slide 22: Significant improvement of Group short-term liquidity profile
Significant improvement of Group short-term liquidity profile Reduction of Dexia short-term funding need Rebalancing of short-term funding mix (EUR bn) (EUR bn) 300 Bilateral & Unsecured EUR 260 bn as 300 Triparty repo unguaranteed of end Oct 2008 Central bank Short-term funding guaranteed 200 EUR 1
Slide 23: Target 2014: Rebuilding Group income on solid client franchises
Target 2014: Rebuilding Group income on solid client franchises Core franchises: Comments ~95% of Group income in 2014 (EUR bn) Core divisions: +5% income growth p.a. Rebuilding market shares in Belgium to deliver EUR 250 m additional income by 2014 Development plan in Turkey, targeting around E
Slide 24: Target 2014: Stringent management of Group cost base
Target 2014: Stringent management of Group cost base EUR 600 m cost reduction target achieved by end 2011 On-going cost control after 2011 Group cost base (EUR m) Group C/I ratio (%) -15% 24 Note: ‘Other effects’ including cost base increase in fast growing businesses and restructuring costs
Slide 25: Target 2014: Expected decrease in Cost of Risk
Target 2014: Expected decrease in Cost of Risk on Core and Legacy divisions Cost of Risk on Core divisions Comments Cost of Risk – RCB Turkey (bps) Core divisions Slight improvement of CoR in Belgium from 2011 onwards despite conservative assumptions on the SME segment CoR in Turkey improving in
Slide 26: Target 2014: Strong rebound of Dexia profitability
Target 2014: Strong rebound of Dexia profitability Pre-tax income: +7% p.a. over 2009-2014 (EUR bn) Note: 2009 Group pre-tax income excl. FSA Inc. 26 PWB excl. Crediop/Sabadell - Assuming sale of Crediop (Mid 2012) and Sabadell (Mid 2013) at book value RCB Be & Lux incl. DBS in 2009
Slide 27: Target 2014: Strong solvency under Basel II framework
Target 2014: Strong solvency under Basel II framework Solid solvency ratios under Basel II Key drivers Solvency ratios (%) Strong organic capital generation: ~EUR 3.8 bn organic capital to be generated via P&L over 2010-2014 EUR 12 bn decrease in RWA by 2014 Legacy reduction to result in ~EUR 22 b
Slide 28: New capital regulations: Basel III impacts
New capital regulations: Basel III impacts Progressive impact of AFS reserve on Dexia Basel III impacts solvency given timing of implementation Estimated AFS reserve evolution3 and Basel III impact (EUR bn) Limited impact of leverage ratio 1H10 2012E 2014E 2016E 2018E Dexia expected to be fully co
Slide 29: Sound capital structure
Sound capital structure ~ Basel II Basel III 2009 2012 2014 With a 30% pay-out ratio from (EUR bn) (EUR bn) (EUR bn) 2011 results onward, excess capital under Basel II vs. EC commitment > ~EUR 4 bn Assuming same dividend policy, ~18 as of 2014, excess capital under Basel III vs. common equity ~15 ta
Slide 30: New liquidity regime: Getting prepared for tougher regulators
New liquidity regime: Getting prepared for a tougher stance from regulators Reduced liquidity leverage of the Group Group More balanced liquidity profile and diversified funding sources achievements to date Improvement of the liquidity profile essentially in line with current proposals from regulato
Slide 31: Key messages
Key messages Target 2012 Rebound of pre-tax income by 2012 thanks to good commercial dynamic, reduced weight of the Organic capital generation Legacy and on-going cost control via P&L: ~EUR 2 bn over 2010-2012 By 2014, strong organic capital generation, Core Tier 1: ~14% enabling Dexia to support co
Slide 32: Deleverage balance sheet and manage the Legacy
Legacy division Deleverage balance sheet and manage the Legacy Philippe Rucheton CFO
Slide 33: Balance sheet deleveraging focused on the Legacy
Balance sheet deleveraging primarily focused on the Legacy, but also including Core assets Reducing Group total balance sheet Deleveraging focused on three portfolios Restated balance sheet evolution (Base 100 = 2008, %) Excluding change in fair value of derivatives, change in posted cash collateral
Slide 34: Sustained pace of asset sales confirming capacity to deleverage
Sustained pace of asset sales in 2009 and 2010 confirming capacity to deleverage Fast pace of deleverage over 2009-2010 Key facts Deleveraging achieved to date (EUR bn, cumulated) Bonds: Deleverage of EUR 16.8 bn in 2009 and EUR 19.5 bn in 2010 YtD (September 27th, 2010), i.e. EUR 36.3 bn deleverage
Slide 35: By 2014: Ability to complete deleveraging plan at contained losses
By 2014: Ability to complete deleveraging plan at contained losses Capacity to deleverage at contained loss Good mix of Core and Legacy bonds rates Bond portfolio – View per rating (1H10) AAA 24,6% AA Diversified mix of assets 31,1% Mostly liquid bonds Existing appetite for specific long-term as
Slide 36: Dedicated set up in place to manage the Legacy
Dedicated set up in place to manage the Legacy Dexia Management Board Portfolio Management Group Dexia Financial Products PWB (PMG) Services (DFPS) Portfolio Management Investment Decision Committee (Head of PWB, Credit and Funding & Liquidity Committee CFO, CRO, Head of TFM) Committees 21 experienc
Slide 37: Dexia Legacy division: Three categories of assets
Dexia Legacy division: Three categories of assets (as of June 30th, 2010) Run-off PWB commitments Bond portfolio in run-off Financial Products portfolio (EUR 15.8 bn + USD 29 bn off B/S) (EUR 125.2 bn) (USD 14.6 bn) High quality assets booked 95% investment grade USD 10.3 bn of assets in run-off ent
Slide 38: Bond portfolio in run-off
Bond portfolio in run-off Diversified mix of assets Bond portfolio in run-off p – View per sector and per rating (EUR bn) AAA AA A BBB NIG Total Public sector 2.2 14.0 9.1 3.8 1.1 30.2 Sovereigns 1.1 6.7 1.3 8.5 0.2 17.7 Banks 3.8 4.8 12.8 3.8 1.3 26.5 Covered bonds 7.4 4.6 0.2 0.0 0.0 12.2 ABS 7.8
Slide 39: Bond portfolio in run-off: Focus on BBB and NIG assets
Bond portfolio in run-off: Focus on BBB and NIG assets Focus on BBB rated assets classified as Focus on NIG assets “Other” Transport B 21,0% 9,0% Total : EUR 8.0 bn Total : EUR 5.7 bn C and Out of the below Bonds hedged by PFI EUR 4.8 bn bonds 22,2% CDS 14,4% not hedged by 40,0% CDS, EUR 1.4 bn BB w
Slide 40: Financial Products portfolio
Financial Products portfolio Financial Products portfolio Impairment methodology Financial Products portfolio (June 30th, 2010) According to IAS 39, bonds with cash Guaranteed shortfalls expected in the short-term must assets be impaired USD 10.3 bn Financial Products USD 14.6 bn For securities recl
Slide 41: Ability to fund the Legacy division in line with EC commitments
By 2014: Ability to fund the Legacy division in line with EC commitments Legacy end 2009 Legacy end 2014 EUR 162 bn < EUR 80 bn (70% ST funding) (11% ST funding) Deleverage more than offsetting amortization of Amortization of Deleverage: ~EUR 75 bn EUR 49 bn Government Guaranteed Debt Limited recour
Slide 42: After 2014: Ability to hold remaining Legacy assets until maturity
After 2014: Ability to hold and manage remaining Legacy assets until maturity Estimated bond portfolios by 2014 Comments Bond portfolio – View per asset class (Base 100 = 1H10, %) Bond portfolio in run-off: Remaining portfolio focused on asset classes where Dexia holds a strong credit expertise Pu
Slide 43: AFS reserve
AFS reserve AFS reserve due to AFS reserve as of June 30th, 2010 bond portfolio in run-off (EUR bn) EUR -4.1 bn AFS reserve on L&R assets Reserves (%) Outstanding (EUR bn) Asset class 38% 22.2 MBS/ABS Focus 32% 28.7 Public sector on EUR 24% 10.8 Utilities and PFI -4.1 bn AFS 5% 4.3 Banks reserve 1%
Slide 44: Financials: Progressive decrease in Legacy revenue
Financials: Progressive decrease in Legacy revenue Income (EUR bn) Main drivers on profitability of the Legacy Decrease in treasury revenue allocated to the Legacy mainly due to: Reduction of the portfolios Reduction of short-term funding Treasury Flattening of the short-term yield curve reven
Slide 45: Key messages
Key messages Target 2012 Legacy assets below Achieve deleveraging targets at contained EUR 90 bn costs Share of ST wholesale Legacy division largely reduced by 2012 funding reduced at or below 20% Ability to align the Legacy with 11% ST funding target by 2014 with limited recourse to Targe
Slide 46: Renew with sustainable scale and profitability
Public and Wholesale Banking Renew with sustainable scale and profitability Pascal Poupelle Head of PWB
Slide 47: Since October 2008: Drastic re-focus of PWB Business
Since October 2008: Drastic re-focus of PWB Business In-depth business transformation Cost base alignment Annual new LT commitments (EUR bn) PWB costs2 (EUR m) Run-off countries: Australia, ~-24% 52 CEE, Japan, Mexico, Sweden, Switzerland, US (SBPA) Legacy 18 ~-70% 34 Italy 3 Iberia 5 Other core cou
Slide 48: PWB 2014: Renew with sustainable scale and profitability
PWB 2014: Renew with sustainable scale and profitability Annual new LT Non lending LT commitments Income commitments income 2 / total (EUR bn) (EUR m) Dexia Group (EUR bn) income (%) income breakdown (2014E) Public Banking ~3.5 (~28%) ~35 (~25%) ~250 (~22%) ~55% Belgium Public Banking ~4.0 (~33%) ~6
Slide 49: PWB 2014: Improved funding structure
PWB 2014: Improved funding structure Funding linked to PWB1 commercial activity Key drivers Contribution to LT funding (as % of PWB LT commitments) Increased PWB deposits base through offer diversification 72% PWB deposits Consistent ability to originate AAA 19% covered bonds eligible assets2 ~70%
Slide 50: Our ambition: Renew with sustainable scale and profitability
Our ambition: Renew with sustainable scale and profitability Public Banking Belgium: 1 A confirmed market leader Public Banking France: 2 A profitable and recognized specialist Corporate Banking Belgium: 3 A profitable and focused client base with an edge in public sector related corporates Project
Slide 51: Public Banking Belgium 2014: A confirmed market leader
Public Banking Belgium 2014: A confirmed market leader ~10,000 clients in both local authorities and social profit segments ~7,000 local and supra-local authorities clients: e.g. municipalities, “centre public d’action Client sociale”, police zones, provinces, regions, communautés, regional and fe
Slide 52: Public Banking Belgium 2010: Quality of revenue
Public Banking Belgium 2010: Quality of revenue through full-fledged banking relationship Full-fledged banking relationship Confirmed leadership and profitability Annual new LT Commercial margin on annual Income breakdown commitments (EUR bn) new LT commitments (Index 100: 2009) 3.9 ~+42% 1 1 3.1 20
Slide 53: Public Banking Belgium 2010: Undisputed client intimacy
Public Banking Belgium 2010: Undisputed client intimacy Undisputed Dexia recognized client intimacy competitive advantages Given your experience, on a scale from 0 to 10, how likely would Stable relationship due to “portfolio you recommend Dexia to your professional environment? effect” (strong busi
Slide 54: Public Banking Belgium 2010: Continuous tailoring of value proposition
Public Banking Belgium 2010: Continuous tailoring of value proposition Energy line: Silver line: Social line: Sustainable development Ageing population Social Inclusion Financing of Housing Pre-paid cards cogeneration certificates creation Solar panels Social- Social aid Energy demographic account e
Slide 55: Public Banking France 2014: A profitable and recognized specialist
Public Banking France 2014: A profitable and recognized specialist ~4,500 strategic clients with a resilient long-lasting relationship Client ~2,500 local authorities clients: e.g. municipalities, departments, regions franchise ~2,000 social profit clients: e.g. hospitals, health and social hous
Slide 56: Public Banking France 2010: Quality of revenue prevailing over volumes
Public Banking France 2010: Quality of revenue prevailing over volumes Selective approach: Potential to improve favoring margins vs. volumes client advocacy Annual new LT commitments Commercial margin on annual new LT Given your experience, on a scale from 0 to 10, (EUR bn) commitments (Index 100: 2
Slide 57: Public Banking France 2010: Redefined approach to financial engineering
Public Banking France 2010: A redefined approach to financial engineering Redefined approach to financial engineering Complete re-assessment of structured loans activity from front to back office New set of rules for structured loans marketing, based upon 10 commitments to our clients “Charte Gi
Slide 58: Public Banking France 2010: A recognized specialist of public sector
Public Banking France 2010: A recognized specialist of public sector Well-recognized sector research Tailored-made studies 58
Slide 59: Corporate Banking Belgium 2014: Profitable and focused client base
Corporate Banking Belgium 2014: A profitable and focused client base with an edge in public sector related corporates ~2,700 key clients ~2,200 key Mid-Corporate clients with turnover between EUR 10 m and EUR 250 m Client ~600 key Corporate and Large Corporate with turnover higher than EUR 250 m
Slide 60: Corporate Banking Belgium 2010: Reengineering of credit process
Corporate Banking Belgium 2010: Reengineering of credit process Improved credit processing time1 Key levers Full process-redesign to eliminate Lead-time to decision (Index 100: 2009 situation) hand-overs and streamline overlapping or double activities -65% 100 Reduction of delegation levels Shared l
Slide 61: Project Finance 2014: The preferred provider of major global sponsors
Project Finance 2014: The preferred provider of major global sponsors with an edge in PFI/PPP and energy/environment ~60 strategic clients mainly active in: infrastructure/PPP and energy/environment (e.g. Bouygues, Colas, EDF, GDF Suez, Eiffage, Suez Environnement, Veolia, Invenergy, Bam, Acs Dragad
Slide 62: Project Finance 2010: A well recognized expertise and reputation
Project Finance 2010: A well recognized expertise and reputation A long-lasting franchise Recent achievements Project Finance annual new LT commitments (EUR bn) Highly loyal client base generating recurring business 85% of new commitments 75% of transactions #4 global player in PFI/PPP projects in 1
Slide 63: PWB income evolution 2009-2014
PWB income evolution 2009-2014 PWB income 2009-2014E (EUR m) 2009 - 2010E/2011E Average income evolution drivers: Higher cost of funding impacting “refinancing price” of existing assets (following early compliance with EC requirements) Commercial margin, fees and other: Stable business and sale
Slide 64: PWB Target 2014: Income, C/I ratio, pre-tax income
PWB Target 2014: Renew with sustainable scale and profitability Income (EUR bn) C/I ratio (%) Pre-tax income (EUR bn) 64 Note: Total PWB excluding Crediop and Dexia Sabadell
Slide 65: PWB Target 2014: Risk weighted assets and ROEE
PWB Target 2014: Renew with sustainable scale and profitability Risk weighted assets (EUR bn) ROEE (%) 40 ~36 ~35 ~21% 13% ~12% 2009 2012E 2014E 2009 2012E 2014E 65 Note: Total PWB excluding Crediop and Dexia Sabadell ROEE calculated based on a normative tax rate at 21%
Slide 66: PWB target 2014
PWB target 2014 Public Banking Belgium: A confirmed market leader Public Banking France: A profitable and recognized specialist Corporate Banking Belgium: A profitable and focused client base with an edge in public sector related corporates Project Finance: The preferred provider of major global spo
Slide 67: Enhance franchise, increase cross-selling on our client base
Retail & Commercial Banking Belgium & Luxembourg Enhance franchise, increase cross-selling on our client base Stefaan Decraene Head of RCB-AMS
Slide 68: Belgium and Luxembourg: Wealthy and robust retail and commercial markets
Belgium and Luxembourg: Wealthy and robust retail & commercial markets Amongst the wealthiest Low non performing High savings rate countries in Europe loan ratio Household savings rate GDP per capita (EUR k, 2009 ) NPL ratio (%, 2009 ) (% of GDP, 2009) Source: IMF Source: Eurostat Source: European C
Slide 69: RCB Belgium: Unlock growth potential and re-build market share
RCB Belgium Unlock growth potential and re-build market share
Slide 70: Belgium: A concentrated and mature retail and commercial banking market
Belgium: A concentrated and mature retail & commercial banking market #1 country in Europe in terms of share of urban population (97%) High degree of population and #2 country in Europe in terms of population density banking (341 inhabitants/km²) concentration High branch concentration, with one bra
Slide 71: Dexia: One of the top Belgian retail and commercial banks
Dexia: One of the top 3 Belgian retail & commercial banks Retail & Private Business Key assets of Belgian franchise Affluent Banking Banking <EUR 500 k >EUR 500 k <EUR 10M turnover Proximity brand, with nationwide branch network footprint #2 bank in Top-tier #4 bank in Retail bank in Business Bankin
Slide 72: Strong Retail position with full territory coverage of branch network
Strong Retail position with full territory coverage of branch network Nationwide branch network … … also supporting Dexia Group businesses Key sales channel for Group businesses 34% of Dexia AM AuM (retail & private funds, private mandates) 53% of Dexia Insurance life premiums (87% of reserves)
Slide 73: A top-tier position in Private and Business Banking
A top-tier position in Private & Business Banking Top-tier bank in Private Banking #4 bank in Business Banking Dexia Private Banking footprint Penetration for professional activities (%) as main & secondary bank in Belgium Flagship branch Private Banking centre Private Advisors in 196 flagship Busin
Slide 74: A resilient and solid franchise through the crisis
A resilient and solid franchise through the crisis, with upside for market share re-gains Highly resilient deposit and customer base Growth potential after period of stagnating through the crisis or eroding market shares Evolution of RCB deposits in Belgium (EUR bn) Increasing share of “Tier 2” chal
Slide 75: Growth potential evidenced by low equipment rate and revenue per client
Growth potential evidenced by relatively low equipment rate and revenue per client Average cross sell rate Lower revenue per client compared to European peers compared to Belgian peers Number of products per client Revenue per client (EUR) 4 3 European average 2 1 0 ia ci B H ds an er ch n e e r Po
Slide 76: Our ambition: Unlock growth potential and re-build market share
Our ambition: Unlock growth potential and re-build market share 1 Become a reference bank for client satisfaction in Belgium Increase cross-selling and revenue from our client base, 2 leveraging our solid franchise Invest EUR 350 m in a new distribution and marketing model 3 to support commercial am
Slide 77: Client satisfaction: First signs of recovery after the crisis
Client satisfaction: First signs of recovery after the crisis Net Promoter Score (NPS) Client satisfaction monitoring trending up across client segments embedded in RCB management Improvement between Sept 2009 & April 2010 Client satisfaction scores as key indicators to measure health of our client
Slide 78: Commercial targets in network to grow revenue from client base
Commercial targets in network to grow revenue from our client base Annual client KPIs objectives (2010), supported by network productivity targets Customer net acquisition Affluent & Private +17,000 clients Business +5,000 clients Cross-selling +20,000 Affluent & Private clients Equipment newly equi
Slide 79: Commercial targets supporting market share and revenue gain ambition
Commercial targets supporting market share and revenue gain ambition by 2014 Ambitious market share gains… … translated into revenue ambition RCB Belgium dynamic market share (production) RCB Belgium Income (EUR bn) EUR +250 m 3.6% CAGR Savings Consumer Business On track in 2010: +EUR 32 m & Deposit
Slide 80: EUR 350 m Capex investment plan to support commercial ambition
EUR 350 m Capex investment plan launched in 2009, to support commercial ambition Capex 2009-2012 Open Branch Concept (EUR m) Deployment Direct sales & services of new distribution In-branch specialized sales model & service model Branch re-clustering Dexia brand repositioning Brand Enhanced segmenta
Slide 81: Roll-out of new branch concept and direct sales
Roll-out of new branch concept, together with development of direct sales and services Open Branch Direct sales In-branch specialised Branch Concept & services sales & service re-clustering Refurbishment to All key branch locations (536) to be refurbished by end 2012 Open Branch Concept To date, 40%
Slide 82: Roll-out of Open Branch Concept on track
Roll-out of Open Branch Concept on track, with focus on high potential branches Number of Open Branch Concept deployed Average of 12 branch refurbishments per month during 1H10 Roll-out on track to reach 2010 year-end target of 310 branches Positive client feedback, successful conversion Target of 5
Slide 83: Enhancement of online sales functionalities on integrated website
Enhancement of online sales functionalities on integrated website Examples of sales functionalities Integrated website for our customers enhancements Integrated account and credit Payment & card simulator Daily Cross sales flow integration Banking with credit advice Extended & personalized Consumer
Slide 84: A new in-branch specialized sales and service model
A new in-branch specialized sales & service model Open Branch Direct sales In-branch specialised Branch Concept & services sales & service re-clustering 500 additional Account Managers (from 1,400 to 1,900 in 3 years), Investing in client of which 192 external recruitments to-date relationship manag
Slide 85: Transversal cooperation
In particular, synergies initiatives across Affluent / Private / SME segments Dual relationship Individual Private Affluent/Private - SME At least 1 Private Banking 348 advisors managing Local Account advisor at cluster level (138) professional & private assets Management Overall 140 certified Priva
Slide 86: Branch re-clustering and optimizing footprint
Branch re-clustering and optimizing footprint through clear branch segmentation Open Branch Direct sales In-branch specialised Branch Concept & services sales & service re-clustering Closing of double Closing of 80 double branches, located within the same municipality presences Integration of small
Slide 87: Enhanced marketing model to support commercial ambition
Enhanced marketing model to support our commercial ambition Brand re-positioning New segmentation Enhanced transparency campaigns & offer Boost visibility Industrialised Retail strategy “New Invest Approach” for Enhanced datamining save & invest products: Reposition Dexia on the “Essential” Cons
Slide 88: Launch of innovative offers in Private and Business segments
Launch of innovative offers to support ambition in Private & Business segments Financial Planning Tailored offer for Medical in Private Banking in Business Financial Plan Banking Tailor-made wealth and cash flow analysis Tailored product & service approach for Wealth optimization incorporating indiv
Slide 89: Innovative Dexia New Invest Approach
Innovative Dexia “New Invest Approach”, MiFID applied with client at the centre Clear definition of client risk appetite through four simple “Investor portraits” Determination of Check client goals, horizon, risk appetite at each client overall risk transaction appetite Client made aware of risks as
Slide 90: Operating efficiency under close scrutiny
Operating efficiency under close scrutiny Example: Reduction of time-to-decision Main initiatives for SME credit approval Further centralization of Support lines at DBB and Group level Lead-time to decision (days) Review of End-to-End processes for Complex credit requests 65% lead-time reduction imp
Slide 91: Our target end-point in 2014
Our target end-point in 2014 Reinforced Dexia position, with attractive brand name built on fairness, transparency and proximity A reference bank for customer satisfaction Re-built market shares and increased cross-selling & revenue per client, especially in SME & Affluent / Private segments Enhance
Slide 92: RCB Luxembourg: Consolidate local franchise
RCB Luxembourg Consolidate local franchise and reinforce Affluent & Private segments
Slide 93: Main challenges and opportunities in Luxembourg
Main challenges and opportunities in Luxembourg Banking secrecy under political pressure at international and European level Changing legal and regulatory EU policies and announcements towards increased fiscal harmonization environment Luxembourg remains a competitive Private Banking center, both in
Slide 94: Dexia: A major actor in Luxembourg
Dexia: A major actor in Luxembourg Key assets of Luxembourg franchise Retail (< EUR 100 k) & Private (> EUR 1 m) & Affluent Banking Commercial Banking (> EUR 100 k) Diversified and high-end client base 186 k clients 42 k clients Broad client segment coverage # 3 bank for Core Private Banking Loc
Slide 95: A dynamic local franchise: Rebuild trust
A dynamic local franchise: Rebuild trust thanks to efficient commercial focus and campaigns Evolution of client trust in Dexia BIL1 (%) 79% 72% 52% Mar 2009 Dec 2009 May 2010 Dynamic client relationship management Growth of Luxembourg-resident client assets2 (%) Systematic client contacts post-cri
Slide 96: Private Banking franchise renewing with positive inflows
A domestic and international Private Banking franchise renewing with positive inflows Net new cash1 (% of AuM) Positive net new cash since 1H10 Supported by core commercial entities: Luxembourg, including Experta, and 2% Switzerland 2008 2009 1H10 -4% Successful deployment of the Affluent Banking of
Slide 97: Our ambition: Consolidate existing franchises
Our ambition: Consolidate existing franchises and strengths to foster development 1 Increase market share in Retail and Commercial Banking Reinforce Private Banking expertise and strengthen position 2 as Dexia reference center for International Private Banking Further improve cost efficiency to supp
Slide 98: By 2014: Increase market share in Retail and Commercial Banking
By 2014: Increase market share in Retail and Commercial Banking Retail Banking Commercial Banking < EUR 100 k (SME, Corporate, Public) Objectives Confirm Dexia BIL as a reference Diversify and further develop in bank for retail clients in Professional banking Luxembourg Position Dexia BIL as an impo
Slide 99: Increase market share in Retail and Commercial Banking – Key actions
By 2014: Increase market share in Retail and Commercial Banking – Key actions Youth segment : Further differentiation of value proposition Targeting young actives Specialization of sales teams in branches Packaged offering per sub-segment Adjustment of service model to customer segment Retail
Slide 100: Reinforce Private Banking expertise
By 2014: Reinforce Private Banking expertise and strengthen position as Dexia reference center Affluent Banking Private Banking > EUR 100 k > EUR 1 m Objectives Foster up-sell and increase share Grow AuM base and improve of wallet cross selling Deploy dedicated offering and Leverage on existing and
Slide 101: Reinforce Private Banking expertise – Key actions
By 2014: Reinforce Private Banking expertise and strengthen position as Dexia reference center – Key actions Discretionary service Setup a dedicated sales force of ~75 Personal bankers for affluent clients within branch network, in addition to personal bankers’ team at headquarters Reinforce Affluen
Slide 102: Further improve cost efficiency
By 2014: Further improve cost efficiency to support profitability and investment capacity Increased Operations and Support functions Reduction of cost base efficiency Ô Optimization of Real Estate space utilization Rationalization and investments of Exit from 4 buildings Luxembourg Optimization
Slide 103: Our target end-point in 2014
Our target end-point in 2014 Leverage of dynamic local franchise and increased market share as main banker of Luxembourg individuals at 15% Better service to our clients thanks to a revised commercial set-up, tailored by segment, and to reinforced expertise Strengthened Dexia BIL position as Dexia i
Slide 104: Enhance franchise, increase cross-selling on our client base
RCB Belgium and Luxembourg Enhance franchise, increase cross-selling on our client base
Slide 105: RCB Belgium and Luxembourg Target 2014
RCB Belgium and Luxembourg Target 2014: Enhance franchise, increase cross-selling on our client base Income (EUR bn) C/I ratio (%) Pre-tax income (EUR bn) 105
Slide 106: Manage a portfolio of three profitable businesses
Asset Management & Services Manage a portfolio of three profitable businesses Stefaan Decraene Head of RCB-AMS
Slide 107: Asset Management and Services: Three profitable businesses
Asset Management & Services: A portfolio of three profitable businesses Asset Management Insurance Investor Services An efficient and A key insurance A well recognized responsive partner player in Belgium top 10 global and Luxembourg player Key activity AuM Premium AuA indicators +7% +64% +38% (1H10
Slide 108: Asset Management
Asset Management An efficient and responsive client partner
Slide 109: Dexia AM: A recognized and well diversified Asset Manager
Dexia AM: A recognized and well diversified Asset Manager Client mix Diversified client franchise Client Relationship Managers covering 15 European Total AuM: EUR 83 bn countries & selected regions Important international institutional franchise (non-captive) Recognized expertise & customized so
Slide 110: Resilience proven through the crisis
Resilience proven through the crisis: Dexia AM well positioned to capture the upside Resilience in Resilience in Investment Management Commercial Development Worldwide, Investment Strategies Large retail outflow due to retail clients were challenged refocusing on deposits Consistent performances del
Slide 111: Operating performance comparing very favorably to peers
Operating performance comparing very favorably to peers High operating margin Low cost structure Gross Operating Income / Income (1H10) Total costs / Average AuM (1H10) Dexia AM comparing very favorably to industry averages on key performance indicators 111 Source: Benchmarking survey
Slide 112: A client-centric business model
A client-centric business model, adding value for clients along the entire value chain Boutique Client-centric organization Beta factory Small size Medium size Huge size Specialised strategies Standardized beta products Customized solutions Dexia AM is ideally positioned to offer solutions adapted t
Slide 113: Our ambition: Grow client franchise
Our ambition: Grow client franchise leveraging an efficient platform and a client-centric expertise Continue to build solutions for client needs Diversified core range generating Alpha SRI pioneer & leader in Alternative Pension funds solutions & asset allocation Expand and diversify client ba
Slide 114: Dexia AM Target 2014: Deliver further growth
Dexia AM Target 2014: Deliver further growth AuM1 (EUR bn) C/I ratio (%) Pre-tax income (EUR m) 114 Note: (1) End of period
Slide 115: Insurance
Insurance Value creation through multi-channel distribution
Slide 116: DIS: A key insurance player with multi-channel distribution
DIS: A key insurance player with a multi-channel distribution strategy in Belgium and in Luxembourg Bancassurance: 87% of Life reserves in Belgium Multi-channel distribution strategy Life insurance fully integrated with DBB Cross-selling of non-life bancassurance products Belgium Luxembourg star
Slide 117: Strong financial and activity recovery in 2010
Strong financial & activity recovery in 2010 Premium evolution1 1H10 vs. 1H09 Strong recovery in Life insurance, especially thanks to strong commercial performance of bank-insurance in Belgium & Luxembourg Strong performance also in Non-life, more resilient than the Life business Overall, important
Slide 118: Dexia Insurance to drive value creation in four areas
Going forward, Dexia Insurance to drive value creation opportunities in four areas surance1 Improve set-up for further cross-selling on retail banking clients Bancas- Unlock further Develop SME potential potential from bank clients Further equip public & corporate clients, capitalising on RCB franch
Slide 119: Clear targets stated in each area
Clear targets stated in each area surance1 Bancas- Unlock further Regain 6% market share in Life by 2014, potential from bank clients to reach 15% natural market share Achieve full potential from 15% annual premium growth by 2012, DVV tied agents’ then 10% up to 2014 network Develop DLP as a centre
Slide 120: DVV: Investment plan to develop tied agents' network
DVV: Investment plan to develop tied agents’ network Key challenges Investment plan Development of the DVV brand 60 new branches and channel 10% additional sales representatives Improvement of the quality Acquisition of portfolios and services of the back offices Investment in brand and communicatio
Slide 121: Insurance Target 2014: Deliver further growth
Insurance Target 2014: Deliver further growth Non life premiums Life premiums (EUR m) Pre-tax income (EUR m) (EUR m) ~2,770 ~2,470 ~600 2,354 ~220 ~540 486 ~170 81 2009 2012E 2014E 2009 2012E 2014E 2009 2012E 2014E Combined ratio (%) Life reserves (EUR bn) C/I ratio (%) 121
Slide 122: Investor Services
Investor Services A well recognized top 10 global player
Slide 123: RBC Dexia Investor Services: One of the top global custodians
RBC Dexia Investor Services activities: One of the top 10 global custodians Key facts as of June 2010 Joint-venture with Royal Bank of Canada since 2006, that leveraged Assets under EUR 1,979 bn complementary core Administration (AUA) (USD 2,428 bn) competencies to increase scale Ranking 2Q10 #10 gl
Slide 124: Recent industry trends creating challenges and opportunities
Recent industry trends creating both challenges and opportunities Globalization of asset management industry – increased cross- border and foreign exchange transactions anticipated New financial market dynamics Equity markets increasing over the last 18 months but still uncertain Low interest rate e
Slide 125: Key activity indicators: Back to pre-crisis level
Key activity indicators: Back to pre-crisis level Assets AuA1 (in EUR tn) Number of funds1 1.98 1.76 6,286 1.43 5,886 5,288 2Q08 2Q09 2Q10 2Q08 2Q09 2Q10 AuA has returned to pre-crisis levels Activity volumes continue to increase supported by Healthy core asset servicing activities Sustained com
Slide 126: RBC Dexia Investor Services well positioned for growth
RBC Dexia Investor Services is well positioned for further growth and development Competitive strengths Significant number of new multi- jurisdictional clients added since the creation of the JV (including new Reputation for service excellence mandates based on an offshore / onshore value propositio
Slide 127: Our ambition: Enable clients to achieve their ambitions
Our ambition: Enable our clients to achieve their ambitions by delivering exceptional service Advance leadership position in Canada and Luxembourg to maximize growth opportunities across our geographic footprint Maximize client Continue to build scale and market presence in key high-growth markets a
Slide 128: Investor Services Target 2014: Deliver further growth
Investor Services Target 2014: Deliver further growth AuA1 (EUR tn) Growth range (CAGR 2009-2014) ~2.70 ~2.45 AuA 8 to 10% 1.71 Income 9 to 12% Costs 4 to 6% 2009 2012E 2014E 128 Note: AuA growth does not include transformational deals, (1) End of period
Slide 129: Pursue sustainable growth story in Turkey
Retail & Commercial Banking Turkey Pursue sustainable growth story in Turkey Hakan Ateş Head of DenizBank
Slide 130: DenizBank, a sustainable growth engine for Dexia
In a nutshell: DenizBank, a sustainable growth engine for Dexia Turkey, a robust economy with growth prospects A sound banking market with strong potential notably in Retail DenizBank, an influential profitable growth story with efficient governance rules A successful and scalable model offering amb
Slide 131: Solid performance of the Turkish economy
Solid performance of the Turkish economy over past decade and strong growth prospects going forward Turkey Real GDP growth (%) 17th biggest economy1 in the world with a large informal sector, and well diversified Strong growth performance since 2002 outperforming EU27 Average GDP growth of ~7% ove
Slide 132: Several socio-economic indicators confirming growth outlook
Several socio-economic indicators confirming growth outlook Young population Rapidly getting richer Population by age group (2009) GDP per capita (USD k, 2009) Turkey 53% 40% 7% +20% in 4 years CIVETS 56% 38% 6% excl. Turkey Brazil 53% 40% 7% China 38% 52% 10% Feeding private consumption +450k homes
Slide 133: A sound banking system thanks to a prudent regulator
A sound banking system thanks to an empowered and prudent regulator Strong capital base Ample and stable liquidity Low leverage risk Tier 1 ratio (end 2009) Loan-to-deposit ratio (end 2009) Leverage ratio (end 2009) 19% 121% 23.3 10% 76% 7.5 Europe Turkey Europe Turkey Europe Turkey 133 Source: Deut
Slide 134: Current level of banking penetration highlights strong potential
Current level of banking penetration highlights strong potential of the market Loans to households to GDP ratio Deposits to GDP ratio 72% 213% 57% 52% 48% 149% 37% 123% 29% 25% 23% 79% 72% 18% 56% 54% 15% 11% 34% 33% 31% 27% UK GER BEL FRA CRO 1 LIT POL SLO ROM TUR RUS1 UK BEL GER FRA CRO SLO TUR LI
Slide 135: Strong local players compete with international subsidiaries
Strong local players compete with subsidiaries of international groups Turkish banking market as of end 20091 Seven well-established banks compose Tier 1 Best-in-class banks: Isbank, Garanti and Akbank Other players: three state banks (Ziraat, Halk and Vakif) and one 50/50 JV (Yapi Kredi) Six mi
Slide 136: DenizBank, the most influential profitable growth story in Turkey
DenizBank, the most influential profitable growth story in Turkey thanks to its differentiating market approach 1997–2003 2004–2006 2007–2010 (Privately owned bank) (Publicly listed co.) … # 81 bank1 # 12 bank1 # 10 bank1 # 9 bank1 DenizBank DNA Prudent risk Efficient cost Superior management and +
Slide 137: Corporate Governance rules set up since the beginning
Corporate Governance rules set up since the very beginning, and reinforced with Dexia Deniz among the first Turkish banks to implement internationally recognized Deniz Deniz Governance Corporate Governance principle Board of Directors Committee Set up of a monthly ‘Governance Committee’ to reinforce
Slide 138: DenizBank growth outperformed the market
DenizBank growth outperformed the market without sacrificing profitability Growth track record Strong profitability Loans market share (%) Return on Equity (%) Deniz 4.8% CAGR 02-09 Sector Deniz Market Peers1 2.6% 48% 36% 2002 2009 High contribution of all segments + Innovative ROE constantly above
Slide 139: Cost efficiency, prudent risk management and asset quality
Cost efficiency, prudent Risk Management and asset quality at the heart of DenizBank success OPEX per FTE (TRY k) Deniz operating expenses per FTE 15% below Deniz Sector sector average in 2009 Peers1 Cost per employee beating inflation with 5.7% CAGR over 06-09 vs. 8.3% for inflation NPL ratio (adju
Slide 140: Accelerated branch opening resulting in a young branch network
Accelerated branch opening over the last 3 years resulting in a young branch network not at its full potential yet Deniz branch network evolution over 04-10 Deniz among the most active players in terms of branch opening 180+ 500+ +150% in 6 years vs. ~50% for the market Increased branch opening pa
Slide 141: DenizBank, a well-established Retail franchise with ~4 m clients
Today, DenizBank, a well-established Retail franchise with ~4 m clients Market shares (2009, %) ~3 m individual clients (2.9 m Mass and 100 k Affluent clients) 6.5 k+ Private Banking clients2 served via wealth management centers Over 420 k agricultural clients #1 Private Bank on this segment Inn
Slide 142: Strong Commercial and Corporate segment
Strong Commercial and Corporate segment benefiting from solid footholds and feeding other Business Lines High performing Commercial and Corporate …feeding other business lines segment… Project finance Retail/ SMEs/ Commercial & Commercial banking Corporate banking Agri Project Finance Corporate (Ann
Slide 143: Portal approach allowing synergies between entities
Portal approach allowing great synergies between entities, thanks to a state-of-the art IT platform CJSC Dexia Moscow Full fledged Retail and Targeting Turkish Corporate Eurozone bank Corporates in Russia to with EUR 1.8 bn deposits create synergies with Deniz Top 5 contender in the sector in trade
Slide 144: Deniz 2014: Be the first alternative to largest banks
Deniz 2014: Be the first alternative to largest banks while maintaining DenizBank profitable growth model Invest TRY 500+ m and speed up branch opening to reach more than 800 branches by 2014 and more than 7% share of doors Enhance customer centric approach to deliver state-of-the-art quality, incre
Slide 145: Support functions: DenizBank model scalability
Support functions: DenizBank model scalability to allow ambitious expansion Training support through Deniz Akademi and Deniz TV: Capacity to train 1000 employees simultaneously in addition to e-learning offers HR Highly skilled junior and mid-level managers to form future executives: 70% of managers
Slide 146: Network: DenizBank to open 300+ new branches
Network: DenizBank to open 300+ new branches focusing on Metropolitans and rural areas with diversified formats DenizBank branch expansion plan Deniz to continue opening more branches than the market More than 80/year 800+ Leverage of its successful model and experienced teams ~60/year 500+ Deniz sh
Slide 147: Individual and Private banking: New active segmentation
Individual & Private banking: New active segmentation to maximize sales effectiveness and grasp market shares Strategy Ambition Mass portfolio served by Account Managers Number of Mass clients (m) Full range of basic and packaged product offering through Mass well defined client segmentation (AuM <
Slide 148: SME and Agricultural Banking
SME & Agricultural Banking: DenizBank to grasp market share through extensive network and innovation Number of SME clients (k) Further expansion of the SME card by offering of custom-tailored solutions 700 - 750 Development of cash management and third- party partnerships with Corporate clients havi
Slide 149: Commercial and Corporate: Target promising mid caps
Commercial & Corporate: Target of promising mid caps and leverage of Corporate franchise and Group expertise Corporate and Deniz to increase the coverage of Turkey key Investment Banking economic zones with 7 additional business centers (~+30%) Suppliers banking / Employees Accompany growth banking
Slide 150: Increased weight of Retail to accelerate deposit collection
Overall: Increased weight of Retail to accelerate deposit collection Increased Retail share in loan book Increased deposit base DenizBank assets evolution DenizBank liabilities evolution Other 4% Other 4% Other 6% Other 6% Cash & liquid Wholesale Cash & liquid Wholesale 14% assets 23% assets 20% 22%
Slide 151: DenizBank Target 2014
DenizBank Target 2014: A business not at full potential, generating TRY 1.2 bn pre-tax income & 14% ROE Income C/I ratio Pre-tax income ROE (TRY bn) (%) (TRY bn) (%) 39% Cost to adjusted income excluding capital gains 151
Slide 152: Reach operational excellence
Operating model Reach operational excellence André Vanden Camp COO
Slide 153: On track to decrease Group cost base by EUR 600 m by 2011
On track to decrease Group cost base by EUR 600 m by 2011 Refocus on core franchises Savings 2009-2011 Divestment of entities1 Group cost base (EUR m) Downsizing of PWB international2 Impact of refocus estimates ~EUR -270 m -15% Achieving operational excellence Efficiency measures -230 m I
Slide 154: Operational excellence facilitated by new Group governance rules
Reaching operational excellence facilitated by the new Group governance rules Functional mode Directive mode CEO CEO Directive mode Dexia SA SL Since June 2009 for Head SL Head Finance and Risk Since September CEO CEO 2010 for Operations Businesses & IT1 SL SL Head Head Reinforcement of Group st
Slide 155: A clear roadmap towards operational excellence
A clear roadmap towards operational excellence Wave 1 Wave 2 Wave 3 2009 2010-2011 2012-2013 Capture quick wins and Continuously capture quick Efficiency develop efficiency wins and develop efficiency measures measures measures Further pool Intra-group Start pooling Group Group synergies resources a
Slide 156: Efficiency measures 2008-2011
Efficiency measures 2008-2011: Capture quick wins and develop efficiency measures Project tracking Cost efficiency measures on main entities DBB (e.g. reduction of buildings, optimisation of payments and securities operations, right-sizing of front-office support) DCL (e.g. right-sizing of sal
Slide 157: Intra-group synergies 2008-2011
Intra-group synergies 2008-2011: Start pooling Group resources and capabilities Project tracking Centralised purchasing Budget driven pressure on purchasing categories Tight demand management Price re-negotiation on specific purchasing categories Leverage of Group purchasing power through
Slide 158: Industrialisation 2008-2011
Industrialisation 2008-2011: Manage productivity in fast growing businesses and start moving to industrialisation Project tracking Deniz staff productivity gains Productivity gains in Ops & IT with ~700 FTE hire avoided due to automation and process optimisation Stabilisation of headquarters F
Slide 159: Third wave of initiatives to capture additional savings in 2012-2013
Third wave of initiatives to capture ~EUR 90 m additional savings in 2012-2013 Refocus on core Further refocus of PWB international franchises Impact of refocus ~EUR 25 m Additional local efficiency initiatives Efficiency Salary cost technical optimisation measures Further IT infrastructur
Slide 160: Examples of intra-group efficiency initiatives
Examples of intra-group efficiency initiatives leveraging the new Group governance rules IT-Development TFM Fragmented IT development activities across Multiplicity of TFM processes and IT entities systems across Dexia entities Context Project delivery weaknesses regarding time- Constrained IT inves
Slide 161: Examples of industrialisation projects
Examples of industrialisation projects preparing Dexia for the future Credit operations Dexia CLF Banque Substantial investment in commercial End of partnership of DCL / DCLF Banque franchises, with growth expectations on with Crédit du Nord on December 31st, 2012 business credits on commercial bank
Slide 162: Close monitoring system in place
Close monitoring system in place Strong management team Tailored governance and tools Sponsorship of each initiative at top Delivery pace and impact monitored management level (i.e. CODIR through recurring performance members) reviews at CODIR level Realistic plans Successful track record Bottom-up
Slide 163: Key messages
Key messages Target 2012 Group cost base decreased by EUR 600 m by end 2011, to compensate for scaled down non commercial revenues and divestures Group C/I ratio: ~68% Operational efficiency projects achieving EUR 545 m savings1 by end 2011 before wage drift and inflation Development of a co
Slide 164: Closing remarks and Q&A
Dexia Group Dexia 2014: A Retail Group with 10 million clients Closing remarks and Q&A Pierre Mariani CEO
Slide 165: Dexia Group Target 2014
Dexia Group Target 2014 Ambition 2014 Target 2012 Stable pre-tax income versus 2009: ~EUR 1.4 bn A robust Solid commercial dynamic: 1 Commercial income1 +4% p.a. (09-12) financial structure ST funding/Total balance sheet at/below 15% Strong solvency: Core Tier 1 at ~14%2 Rebalanced activities 2 towa
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Slide 167: Pierre Mariani
Pierre Mariani Between 1982 and 1992 he occupied various functions in the Ministry of Economy and Finance. In 1993 he was appointed Director of the Cabinet of the Budget, Government spokesman and Minister of Communication. In 1995 he was appointed Managing Director of the Société française d’investi
Slide 168: Philippe Rucheton
Philippe Rucheton Philippe Rucheton worked 20 years for the Groupe Sociéte Générale (SG) and held various senior management position such as CFO of Newedge (2008), Vice Chairman of Komercni Banka (2002- 2008) based in Prague, Head of ALM for Sociéte Générale from 1995-2002 and Deputy Managing Direct
Slide 169: Pascal Poupelle
Pascal Poupelle After ten years with the French Ministry of Defense and the Ministry of Transportation, Pascal Poupelle begins his banking career at Credit Lyonnais in 1988. In 1991, he becomes Global Head of Aviation Finance until 1994, when he moves to New York as Head of Capital Markets. In 1997,
Slide 170: Stefaan Decraene
Stefaan Decraene The first part of his career revolved around corporate banking and investment banking in Belgium. In 2001 he was appointed chairman of the Management Board of Banque Artesia Nederland, and became a member of the Management Board of Dexia Bank Nederland in 2002. In 2003 he became mem
Slide 171: Hakan Ates
Hakan Ates Born in 1959 in Ankara, Mr. Ateş graduated from Middle East Technical University, Faculty of Business Administration. He started his banking career in 1981 as Internal Auditor at İşbank. Following various positions at different Interbank departments from 1985 to 1994 he worked as Branch M
Slide 172: André Vanden Camp
André Vanden Camp André Vanden Camp has occupied various positions in ministries before he became IT Director of the “Beurs van Brussel” (Nyse Euronext). In 1991 he joined CIK (later Euroclear Bank) as Organization and IT Director before being appointed General Director in 1995. He started to work f