Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Investor Day (September 2006)
40 slides from Dexia Holding SA's investor day presentation, Sep 26, 2006
Slide 1: Creating Strategic Value: Moving Forward into the Next 10 Years
Creating Strategic Value Moving Forward into the Next 10 Years Asset Management Investor Services Hugo Lasat - CEO Dexia Asset Management Paris, September 26th 2006 José Placido - CEO RBC Dexia Investor Services
Slide 2: Asset Management
Creating Strategic Value Moving Forward into the Next 10 Years Asset Management Paris, September 26th 2006
Slide 3: Dexia AM - Introduction
Dexia AM - Introduction 44 77 major major management managementcenters: centers: investment investmentcompetences: competences: Brussels, ≈100 Brussels, equity, Luxembourg, equity,fixed fixed income, income, Luxembourg, money Paris, money market, global market, global Paris,Sydney Sydney balanced, S
Slide 4: Dexia AM - a History of Growth
Dexia AM - a History of Growth From Fromaa domestic domestic Asset Asset Manager Manager operating operating in in Belgium, Belgium, France France && Luxembourg Luxembourg (2001) (2001) to to aa European European Asset Asset Manager Manager with with opportunistic opportunistic international interna
Slide 5: Dexia AM - a History of Growth: AuM and net new cash
Dexia AM - a History of Growth Growth Growth in in AuM AuM AuM CAGR has been 11 % since 2001 (EUR Bn) CAGR 97.3 Net New Cash has been significant and positive in all years + 11% 25.7 Institutional now represents 49% of total 60.9 (410 mandates vs. 289 in December 2001) 21.7 10.6 Institutional Mandat
Slide 6: a History of Growth Combined with Efficiency
Dexia AM - a History of Growth Combined with Efficiency Past Past Evolution Evolution of of P&L P&L Costs Costs // AuM AuM (%) (%) compared compared with with industry industry (EUR (EURMM)) (Source (SourceMMcKinsey) cKinsey) 198 CAGR + 22% Europe 18 bp 126 87 Average Gross Operating Income 48 Total
Slide 7: Investment Performance
Dexia AM - Investment Performance More More than than 70% 70% of of assets assets under under management management are are in in the the first first two two quartiles quartiles 55% 43% 28% 29% 25% 10% 7% 4% 1st 2nd 3rd 4th 3-year (rolling) 5-year (rolling) Source: Standard & Poor’s 7
Slide 8: AUSBIL Dexia: a Success Story
AUSBIL Dexia: a Success Story 8
Slide 9: Current Positioning - A European Player
Dexia AM - Current Positioning - A European Player Dexia Dexia Asset Asset Management Management within within the the Dexia Dexia Group Group Retail Banking Insurance Dexia Dexia Asset Asset Public Finance Private Banking Management Management Third-party Third-party distribution distribution Insti
Slide 10: Current Positioning - A European Player
Dexia AM - Current Positioning - A European Player Dominant US players, Dexia AM = Local/Regional World players present European Player players in Asia and Europe Operate in all three zones Operate in all three zones, but Operates in other zones, Strong presence in local Presence in retail, institut
Slide 11: Current Organization
Dexia AM - Current Organization An efficient organization based upon the principle of centralized production and decentralized sales and distribution Scope of all asset management centers are clearly defined with no overlap Local relationship management ensures adequate institutional client coverage
Slide 12: Major Trends in the Asset Management Industry
Major Trends in the Asset Management Industry Demographics Saving growth in Middle East, SE Asia, Central Europe and Turkey Pension Provisions / Social Security in Europe Size of savings pool in the US Globalization Global cross-selling of regional expertise Global financial markets and communicatio
Slide 13: Ambition
Dexia AM - Ambition From Fromaa EUROPEAN EUROPEAN PLAYER PLAYER with with opportunistic opportunistic international international presence presence to to aa European European player player with with STRATEGIC STRATEGIC INTERNATIONAL INTERNATIONAL PRESENCE PRESENCE FROM TO ► Production centers Centra
Slide 14: Key Strategic Direction - Way Forward
Dexia AM - Key Strategic Direction - Way Forward From Fromaa EUROPEAN EUROPEAN PLAYER PLAYER with with opportunistic opportunistic international international presence presence to to aa European European player player with with STRATEGIC STRATEGIC INTERNATIONAL INTERNATIONAL PRESENCE PRESENCE Organi
Slide 15: Leverage on Distinctive Features
Dexia AM - Leverage on Distinctive Features GIPS Compliant Investment Performance track record Organization and corporate culture Experienced teams with low turnover Constant focus on innovation Continental European leader in alternative investments Successful decentralized institutional sales teams
Slide 16: Key Strategic Direction - Organic growth developments
Dexia AM - Key Strategic Direction - Way Forward Organic growth developments … Expand client coverage in zones where Dexia AM is not or only partly present Full coverage of main regions in Continental Europe Germany Czech Republic, Hungary and Poland High growth areas Middle East Develop new c
Slide 17: Key Strategic Direction - Adapting business model
Dexia AM - Key Strategic Direction - Way Forward … while continuously adapting business model Outsource non-core AM capabilities Building retention focused HRM framework Creation of specialized fund boutique Sales & distribution organization IT & Operations Business 17
Slide 18: Key Strategic Direction - Selective acquisitions
Dexia AM - Key Strategic Direction - Way Forward Build new institutional production capabilities and expand client coverage through selective acquisitions if they fit with Dexia Asset Management’s corporate culture and structure United States South East Asia Europe Insourcing smaller Asset Managemen
Slide 19: Specialized competence centers (2009 Target)
Dexia AM - 2009 Target Specialized Specialized competence competence centers centers (2009 (2009 Target) Target) Decentralized Decentralized sales sales and and distribution distribution Brus. Lux. Paris Sydn. Istan. Asia US z Sales & Distribution Centers in European Equity & Financial Analysis Quan
Slide 20: 2009 Target AuM and P&L
Dexia AM - 2009 Target Aum and P&L With no change of scope Expected Expected Evolution Evolution AuM AuM Expected Expected Evolution Evolution P&L P&L (EUR (EUR Bn) Bn) (EUR (EUR M) M) Assumes market effect of approx. EUR 3 Bn / year Net new cash ≥ EUR 10 Bn / year 317 149.5 CAGR CAGR + 13.3% 36.0 +
Slide 21: Conclusion
Dexia AM - Conclusion From From aa EUROPEAN EUROPEAN PLAYER PLAYER with with opportunistic opportunistic international international presence presence to to aa European European player player with with STRATEGIC STRATEGIC INTERNATIONAL INTERNATIONAL PRESENCE PRESENCE 21
Slide 22: Investor Services
Creating Strategic Value Moving Forward into the Next 10 Years Investor Services Paris, September 26th 2006
Slide 23: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, we make written and oral forward-looking statements within the meaning of certain securities laws, including the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. We may make such statements
Slide 24: Agenda
Agenda Overview of the RBC Dexia Investor Services business Review of the first nine months Looking ahead 24
Slide 25: Overview - Equal Partners: Collaborative Advantage
Overview - Equal Partners: Collaborative Advantage Broad geographic reach for sales and service 50% 50% Complementary core competencies Increased scale economies Access to larger mandates Singular focus on investor services 25
Slide 26: Overview - Global Reach: Broad Distribution Network
Overview - Global Reach: Broad Distribution Network 4,060 4,060 Employees Employees in in 15 15 Countries Countries June June2006 2006 40% North America Canada Cayman Islands Asia Pacific Australia Singapore Hong Kong 8% Europe and Middle East Belgium Netherlands France Spain Ireland Switzerland Ita
Slide 27: Overview - Diverse Client Mix; Full Product Suite
Overview - Diverse Client Mix; Full Product Suite Client Client Assets Assets Under Under Custody Custody June June2006 2006 Pension plans 24% M utual funds 41% 13% Insurers 20% Private banking assets 1% Financial institutions Securities Services Investment Administration End-Client Services Custody
Slide 28: Review - Industry Leadership
Review - Industry Leadership Area of Recognition Ranking Region Sponsor Years Overall Quality 1 Global Global Investor 2004, 2005, 2006 Client Service Global Technology; 1 Global Global Investor 2005, 2006 Custody Range of Services; Securities Lending Overall Quality 1 Global R&M Consultants 2005, 2
Slide 29: Review - Snapshot of RBC Dexia Investor Services
Review - Snapshot of RBC Dexia Investor Services As of June 30, 2006 Head office London, England Credit rating Aa3 (Moody’s) Assets under administration(1) USD 2,080 Bn Funds administered 4,079 Shareholder accounts serviced 6.3 M (1) Assets under custody, admin istratio n and transfer agent in the b
Slide 30: Review - Scorecard: The First Nine Months
Review - Scorecard: The First Nine Months Organisational alignment One mission, one company Business retention Over 99% of clients confirmed commitment Growth synergies Upselling EUR 33 Bn in AUA Æ EUR 16 M annualized revenue New clients EUR 53 Bn in AUA Æ EUR 17M annualized revenue Operational effi
Slide 31: Review - Financial Results (50% Contribution to Dexia)
Review - Financial Results (50% Contribution to Dexia) Year-to-Date as of June 30 Underlying YTD Revenue is 27% higher Underlying YTD Net income are 63% higher than 2005 pro forma than 2005 pro forma Revenue Revenue (EUR (EURMM)) Net Net Income Income (EUR (EURMM)) 189 177 43 148 39.6 26 H1 2005 H1
Slide 32: Future - Favorable Market Trends
Future - Favorable Market Trends Strong fundamentals drive growth in asset management Expanding demand for full-service outsourcing Globalization of asset managers 32
Slide 33: Future - Key Markets - Mutual Funds
Future - Key Markets - Mutual Funds Assets(1) Funds Projected Growth USD Bn # 5-year CAGR Luxembourg 1,636 7,222 10% France 1,363 7,758 9% UK 547 1,680 11% Ireland 546 2,127 10% Italy 450 1,035 7% Europe Spain 317 2,672 10% Germany 297 1,076 9% Switzerland 117 510 8% Belgium 115 1,391 n/a Netherland
Slide 34: Three-Year Goals
Three-Year Goals Maintain global reputation for high service quality Maintain high credit rating Maintain top quartile ranking in industry surveys Realize full JV synergies Grow revenues twice as fast as costs Earnings growth of over 20% CAGR for 2005-2009 34
Slide 35: Key Strategies: Advance leadership in core markets
Key Strategies Advance leadership in core markets Maintain unwavering focus on service quality Deepen high-potential client relationships: up-sell, cross-sell Participate in market consolidation opportunities 35
Slide 36: Key Strategies: Accelerate growth outside core markets
Key Strategies Accelerate growth outside core markets Develop local solutions that leverage enterprise resources and expertise Build scale through focused sales efforts and lift-outs Assess new market entry opportunities 36
Slide 37: Key Strategies: Broaden suite of products through innovation
Key Strategies Broaden suite of products through innovation Strengthen value-added product capability to meet the changing needs of the existing client franchise Extend capabilities to serve new emerging growth segments 37
Slide 38: Key Strategies: Optimize efficiency and economies of scale
Key Strategies Optimize efficiency and economies of scale Execute technology roadmap: best-in-class applications globally Implement vendor rationalization programme Capitalize on efficiencies from shared utilities 38
Slide 39: A fresh perspective on investor services
A fresh perspective on investor services 39
Slide 40: Creating Strategic Value: Moving Forward into the Next 10 Years
Creating Strategic Value Moving Forward into the Next 10 Years Paris, September 26th 2006