Allianz SE · XETR:ALV
Allianz — Non-Deal Roadshow (October 2003)
19 slides from Allianz's roadshow presentation, October 2003
Slide 1: Staying the course
Michael Diekmann, Paul Achleitner Staying the course Roadshow USA October 2003
Slide 2: Overview: Key figures
Roadshow USA: Staying the course 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
Slide 3: Overview: Our business model
Roadshow USA: Staying the course Overview: Our business model Value-oriented, customer-driven and market-focussed Germany Continental Europe Emerging markets Independent inter- Integrated financial Partially integrated mediary markets services provider financial services models Property/ Life/ Italy
Slide 4: Evolution of 'back to basics': plus program up and running
Roadshow USA: Staying the course Evolution of ‘back to basics’: 3 plus 1 program up and running “3 plus 1” program elements 2003 Back to basics Significant challenges 2002 § Tight capital position 1 Protect and enhance capital base § Insufficient operating profit- Substantially strengthen operating
Slide 5: Protect and enhance capital base
Roadshow USA: Staying the course 1 Protect and enhance capital base The challenge § Maintain adequate rating § Further improve capital position Achieved so far Under way Targets § Successful rights issue: § Enhanced risk management § Align all processes EUR 4.4bn fresh capital processes being accord
Slide 6: Promised risk diversification delivered by reduction of financial holdings
Roadshow USA: Staying the course 1 Protect and enhance capital base: Promised risk diversifi- cation delivered by reduction of financial holdings Selected holdings Beginning 2000 Currently (Allianz + Dresdner) (% owned) < 15% < 10% < 5% 0% Monachia 48.7 4 Beiersdorf 38.4 4 Munich Re 33.3 4 Hypoverei
Slide 7: Operating profitability: P/C
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: P/C The challenge § Operating discipline § Maintain positive technical results over the cycle Achieved so far1 Under way1 Targets § Claims ratio improved § Turnaround of § 2003: Combined ratio from 74.6% to 71.4% be
Slide 8: Operating profitability: L/H
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: L/H The challenge § Increase profitability § Reduce risk profile Achieved so far1 Under way Targets § Maintained strong organic § Maintain value-creating § Optimized asset allocation growth of 18.2%2 margin in the U
Slide 9: Operating profitability: Dresdner Bank
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: Dresdner Bank The challenge § Focus on profitability (CoC) § Increase retail capabilities Achieved so far* Under way Targets § New management team § “New Dresdner” § Operational break even § RWA reduction in 2003 –
Slide 10: Operating profitability: Asset Management
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: Asset Management The challenge § Grow assets under management and revenues § Optimize organization and reduce cost-income ratio Achieved so far Under way Targets § Integration of different § Further reduction of § G
Slide 11: Operating profit indicates underlying earnings potential
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: Operating profit* indicates underlying earnings potential (in EUR bn) Split (in EUR m) 1H 2002 1H 2003 2.2 Property/ Casualty 1,039 1,286 +94% Life/ 726 641 1.1 Health Banking -951 -21 Asset 334 320 Management 1H 20
Slide 12: Value drivers and profit levers
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: Value drivers and profit levers Value drivers Profit levers: Examples P/C § Combined ratio - 1%-p combined ratio è net income + EUR 0.3bn § Investments + 10% equity markets è net income + EUR 200m L/H § Expense rati
Slide 13: 3Q 2003 - Positive trend in operating business continues
Roadshow USA: Staying the course 2 Substantially strengthen operating profitability: 3Q 2003 - Positive trend in operating business continues P/C § Combined ratio approx. 97% § Continued growth and positive earnings trend L/H § Changed tax treatment will reduce net profit by approx. EUR 150m in 4Q 2
Slide 14: Reduce complexity
Roadshow USA: Staying the course 3 Reduce complexity The challenge § Efficient management and reduction of complexity § Maintain sufficient operational flexibility Achieved so far Under way Targets § Significant unwinding with § Simplification of § Maintain maximum Munich Re organizational structure
Slide 15: Reduce complexity: Disposal of non-core businesses in 03
Roadshow USA: Staying the course 3 Reduce complexity: Disposal of non-core businesses in 2003 Company Country Announced Transaction Pioneer Allianz Philippines January sale* Advance Organization February reintegration SRIR Luxembourg March run-off MBA Brunei May sale Allianz Parkway Singapore May sa
Slide 16: '3 plus 1' program: Optimization of capital allocation
Roadshow USA: Staying the course 4 “3 plus 1” program: Optimization of capital allocation Dividends = CoC Debt service Profitable subsidiaries Allianz AG Holding Profits > CoC expenses Restructuring Dividends < CoC Dividends cases Growth Capital External segments growth Assigned capital (risk-adjust
Slide 17: '3 plus 1' program: Implications of Allianz dividend model
Roadshow USA: Staying the course 4 “3 plus 1” program: Implications of Allianz dividend model Efficient capital allocation § Efficient and liquid internal capital market § Increased strategic flexibility of holding company § Capital accumulation only in profitable segments § Transparent investment p
Slide 18: Wrap-up: Set to capitalize on growth opportunities
Roadshow USA: Staying the course 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
Slide 19: Disclaimer
Roadshow USA: Staying the course 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 a