Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — FY2011 Earnings Presentation
52 slides from Dexia Holding SA's earnings presentation, Feb 23, 2012
Slide 1: FY 2011 Results and Update on the Group's restructuring process
FY 2011 Results and Update on the Group’s restructuring process 23 February 2012 Pierre Mariani, CEO Philippe Rucheton, CFO
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 includes unaudit
Slide 3: Key Assumptions Underlying the Financial Statements of Dexia as of 31/12/2011
Key Assumptions Underlying the Financial Statements of Dexia as of 31/12/2011 Financial statements 2011 of the Dexia group prepared on a “going concern” basis assuming that : The EC will agree on a new restructuring plan of the Dexia group that will include notably a guarantee from the Belgian, Fren
Slide 4: Key Messages
Key Messages Highly contrasted 2011 marked in its second half by the sharp worsening of the economic environment Until May 2011, execution of the restructuring on schedule Pressure on liquidity induced by the deterioration of the economic climate leading the group to take a sharp turn In October, an
Slide 5: Agenda
Agenda Update on Dexia’s Restructuring Process 2008 to mid-2011 : Execution of the group’s restructuring plan In October 2011 : Degraded environment forcing a new response Implementing structural measures towards a deeply reshaped group Group Results FY 2011 group results Segment reporting Balance s
Slide 6: Agenda
Agenda Update on Dexia’s Restructuring Process 2008 to mid-2011 : Execution of the group’s restructuring plan In October 2011 : Degraded environment forcing a new response Implementing structural measures towards a deeply reshaped group Group Results FY 2011 group results Segment reporting Balance s
Slide 7: 2008 to mid-2011: Execution of the Group's Restructuring Plan
2008 to mid-2011 : Execution of the Group’s Restructuring Plan Before 2008, strategy based on fast expansion and liquidity leverage Before 2008, group’s high ratings (AA/Aa1/AA+) granting easy access to wholesale funding EUR 260 bn short term funding outstanding as at end of October 2008 representin
Slide 8: Intensive deleveraging of assets since 2008
2008 to mid-2011 : Execution of the group’s restructuring plan Intensive deleveraging of assets since 2008 Decrease of non-strategic assets EUR 121 bn reduction of non-strategic assets between 2008 and mid-2011 (EUR bn) 259 EUR -121 bn Active deleveraging process with EUR 28 70.3 bn of assets divest
Slide 9: Divestment process leading to a reduction of the risk profile
2008 to mid-2011 : Execution of the Group’s Restructuring Plan Divestment process leading to a reduction of the risk profile Entities Target date* Closing date Kommunalkredit Austria AG - 03 Nov. 2008 Divested in FSA - 31 July 2009 2008 - 2009 Crédit du Nord 2009 11 Dec. 2009 Dexia Epargne Pension J
Slide 10: Development and consolidation of the commercial businesses
2008 to mid-2011 : Execution of the Group’s Restructuring Plan Development and consolidation of the commercial businesses Investment plan of EUR 350 m to Deposits Retail & unlock growth potential Commercial By end of June 2011, concept of new Banking + 19% + EUR 12 bn distribution model implemented
Slide 11: Transformation progressing in line with targets
2008 to mid-2011 : Execution of the Group’s Restructuring Plan Transformation progressing in line with targets Dec. 2008 June 2011 Substantial rebalancing of the group’s liquidity structure; 19% of B/S funded - 63% Short-term short term in June 2011 funding EUR 260 bn EUR 96 bn Active management of
Slide 12: Increased pressure on the Group's liquidity as from 2Q 2011
In October 2011 : Degraded Environment Forcing a New Response Increased pressure on the Group’s liquidity as from 2Q 2011 From 2Q 2011, deteriorating financial environment on the back of the worsening European Sovereign crisis and successive rating actions increasing pressure on the group’s liquidit
Slide 13: Increasing turbulences during the summer 2011
In October 2011: Degraded Environment Forcing a New Response Increasing turbulences during the summer 2011 During the summer 2011, highly volatile markets and global deterioration of the environment Additional EUR 6 bn reduction in unsecured short term funding between end of June and end of Septembe
Slide 14: Disposal of Operational Entities (1/2)
Implementing structural measures towards a deeply reshaped group Disposal of Operational Entities (1/2) Entities Status Main impacts / features Dexia Bank Belgium Closed on 20/10/2011 Reduction of B/S by EUR 150 bn* Weighted risks down by Sold EUR 45 bn* Reduction of ST funding gap by EUR 16 bn Dexi
Slide 15: Disposal of Operational Entities (2/2)
Implementing structural measures towards a deeply reshaped group Disposal of Operational Entities (2/2) Entities Status Main impacts / features Dexia Municipal Agency Agreement with the French EUR ~1 bn loss for the State, CDC* and LBP* for Dexia Group the financing of French Reduction of B/S by loc
Slide 16: New liquidity guarantee scheme
Implementing structural measures towards a deeply reshaped group New liquidity guarantee scheme To support the execution of the structural measures decided by the Board in October 2011, approval of a new liquidity guarantee scheme by the States of Belgium, France and Luxembourg covering new debt iss
Slide 17: 2012 roadmap towards the remaining Dexia group
Implementing structural measures towards a deeply reshaped group 2012 roadmap towards the remaining Dexia group Completion of pending divestiture processes: Take-over of local public wholesale financing by a new structure backed by French State institutions Sale of main operational entities : BIL*,R
Slide 18: Agenda
Agenda Update on Dexia’s Restructuring Process 2008 to mid-2011 : Execution of the group’s restructuring plan In October 2011 : Degraded environment forcing a new response Implementing structural measures towards a deeply reshaped group Group Results FY 2011 group results Segment reporting Balance s
Slide 19: Presentation of the group 2011 financial statements
FY 2011 Group Results Presentation of the group 2011 financial statements Financial statements 2011 prepared on a “going concern” basis assuming that Dexia will benefit from a definitive liquidity State guarantee which size and price will be compatible with the viability of the remaining group Appli
Slide 20: Loss of EUR 11.6 bn largely driven by one-off items
FY 2011 Group Results Loss of EUR 11.6 bn largely driven by one-off items Significant items Net income Loss on sale of Dexia Bank EUR -4,048 m Belgium Impairment on Greek sovereign and assimilated EUR -3,364 m exposures* Financial Products : EUR -1,928 m Bonds and loans : EUR -438 m Cost of delevera
Slide 21: Reported Consolidated Statement of Income
FY 2011 Group Results Reported Consolidated Statement of Income 2010* 2010** 2011** (EUR m) As published Restated Income 5,310 1,562 -4,383 Expenses -3,703 -1,136 -1,114 Gross operating income 1,607 426 -5,497 Cost of risk -641 -611 -551 Other impairments & provisions for legal litigation -42 -38 -1
Slide 22: Focus on significant items - continuing operations (1/2)
FY 2011 Group Results Focus on significant items - continuing operations (1/2) Publication Pre-Tax Significant Items Line Impact Impairment on Greek sovereigns, assimilated and related hedges Income EUR -3,054 m Cost of Risk EUR -310 m Given no final agreement reached on the involvement of the priva
Slide 23: Focus on significant items - continuing operations (2/2)
FY 2011 Group Results Focus on significant items - continuing operations (2/2) Publication Pre-Tax Significant Items Line Impact EUR -252 m Fair-value adjustment for other asset disposals (IFRS 5) Income EUR -1,487m in 2Q11 EUR +30 m in 3Q11 EUR +1,205 m in 4Q11 Fair-value adjustment of EUR -1,487 m
Slide 24: Focus on significant items - discontinued operations
FY 2011 Group Results Focus on significant items – discontinued operations Publication Impact on Significant Items Line Net Result Loss on the sale of Dexia Bank Belgium Income EUR -4.1 bn Loss of EUR 4.1 bn on the sale of DBB taking DBB 9M 2011 results into account, including EUR 1.3 bn of impairme
Slide 25: Commercial franchises RCB and PWB
Segment Reporting excluding DBB Commercial franchises RCB and PWB In Turkey: In line with expansion plan, 88 new domestic branches opened in 2011 to reach 600 branches in total (incl. the foreign branches) as at end of Dec. 2011; 875,000 new clients acquired in 2011 (5.1 m of clients by end of 2011)
Slide 26: Commercial franchise AMS and Legacy Division
Segment Reporting excluding DBB Commercial franchise AMS and Legacy Division Assets under management amounting to EUR 78 bn as at the end of Dec. 2011; Yoy decrease due to market effect (EUR 2.4 bn) and net outflows (EUR 6.0 bn mainly in retail Asset Management and bond funds) Services Assets under
Slide 27: Focus on Legacy Portfolio Management Division
Segment reporting Focus on Legacy Portfolio Management Division Downsize of the Legacy Portfolio Excl. off balance sheet items, Legacy Division down EUR 45 bn in 2011, o/w (EUR bn) EUR 18.7 bn due to the sale of DBB and EUR -59 bn EUR 24.6 bn of assets’ sales 154 25.7 19 125 SBPA reduced by EUR 14 b
Slide 28: Agenda
Agenda Update on Dexia’s restructuring process 2008 to mid-2011 : Execution of the group’s restructuring plan In October 2011 : Degraded environment forcing a new response Implementing structural measures towards a deeply reshaped group Group results FY 2011 Group results Segment reporting Balance s
Slide 29: Balance sheet impacted by disposals
Balance Sheet, Liquidity and Solvency Balance sheet impacted by disposals Dexia Bank Belgium deconsolidated as Total assets at 1 October 2011 (EUR bn) 567 Balance sheet down EUR 154 bn vs. 14 518 end of 2010 driven by: 47 599 17 57 14 Core assets decreasing by EUR 109 bn 38 Discontinued operations 4
Slide 30: Increasing pressure on the group's liquidity situation over 2011
Balance Sheet, Liquidity and Solvency Increasing pressure on the group’s liquidity situation over 2011 1H11 positive in terms of new debt issuance while Breakdown of ST Funding (31/12/2011) 2H11 offering very limited windows due to the (EUR bn) Guaranteed worsening European sovereign crisis; EUR 18.
Slide 31: Core shareholders' equity impacted by the negative results
Balance Sheet, Liquidity and Solvency Core shareholders’ equity impacted by the negative results Core shareholders’ equity impacted by the Core shareholders’ equity and OCI* EUR 11.6 bn loss booked in 2011 (EUR bn) 19.2 Other Comprehensive Income* improving by 15.3 EUR 0.7 bn yoy EUR 2 bn improvemen
Slide 32: Solvency impacted by the negative net results
Balance sheet, Liquidity and Solvency Solvency impacted by the negative net results Weighted risks Weighted risks down EUR 57.4 bn vs. Dec 2010 (EUR bn) 140.8 EUR 13.8 bn decrease in 1H11 mainly driven by the 10 127.0 divestment of the guaranteed Financial Products in 3 10 June 2011 7 Additional EUR
Slide 33: Appendices
Appendices 1 Financial Statements as at 31 December 2011 (unaudited) 2 Capital Adequacy and Weighted Risks 3 Data per Share 4 Legacy Portfolio Management Division, including the Bond Portfolio in Run-Off 5 Maximum Credit Risk Exposure of the Group and of government bonds on a selection of European c
Slide 34: Balance Sheet (1/2)
1 – Balance Sheet (1/2) Assets ASSETS (m EUR) Dec. 31, 2010 Dec. 31, 2011 I. Cash and balances with central banks 3,266 4,847 II. Loans and advances due from banks 53,379 45,728 III. Loans and advances to customers 352,307 173,550 IV. Financial assets measured at fair value through profit or loss 9,
Slide 35: Balance Sheet (2/2)
1 – Balance Sheet (2/2) Liabilities and equity LIABILITIES (m EUR) Dec. 31, 2010 Dec. 31, 2011 I. Due to banks 98,490 106,384 II. Customer borrowings and deposits 127,060 19,419 III. Financial liabilities measured at fair value through profit or loss 20,154 5,200 IV. Derivatives 72,347 56,037 V. Fai
Slide 36: Consolidated statement of income (1/2)
1 – Consolidated statement of income (1/2) Year-to-date (m EUR) Dec. 31, 20101 Dec. 31, 2011 I. Interest income 23,375 23,917 II. Interest expense (22,090) (23,174) III. Dividend income 12 7 IV. Net income from financial instruments at fair value through profit or loss (102) (56) V. Net income on in
Slide 37: Consolidated statement of income (2/2)
1 – Consolidated statement of income (2/2) Year-to-date 1 (m EUR) Dec. 31, 2010 Dec. 31, 2011 Net result from continuing operations (167) (6,405) Attributable to non-controlling interests 64 (7) Attributable to equity holders of the parent (231) (6,398) (EUR) Earnings per share 2 - basic 0.37 (5.97)
Slide 38: Statement of Changes in Equity as at 31 December 2011 (1/2)
1 – Statement of Changes in Equity as at 31 December 2011 (1/2) CORE SHAREHOLDERS' EQUITY Subscribed Additional paid- Treasury shares Reserves and Net income for Core capital in capital retained the period shareholders' (m EUR) earnings equity As at December 31, 2010 8,442 13,618 (21) (3,548) 723 19
Slide 39: Statement of Changes in Equity as at 31 December 2011 (2/2)
1 – Statement of Changes in Equity as at 31 December 2011 (2/2) NON-CONTROLLING INTERESTS Core Gains and losses Non-controlling equity not recognized in interests the statement of income (m EUR) As at December 31, 2010 1,858 (75) 1,783 Movements of the period - Increase of capital 7 7 - Dividends (2
Slide 40: Statement of Comprehensive Income
1 – Statement of Comprehensive Income Year to date Dec. 31, 2010 Dec. 31, 2011 Before-tax Tax (expense) Net-of-tax Before-tax Tax (expense) Net-of-tax (1) (m EUR) amount benefit amount amount benefit amount Result recognized in the statement of income 797 (11,641) Unrealized gains (losses) on availa
Slide 41: Capital Adequacy
2 – Capital Adequacy Comparison total equity (financial statements) and total equity as calculated for regulatory purposes (m EUR) Dec. 31, 2010 Dec. 31, 2011 Financial Regulatory Financial Regulatory Statements purposes Statements purposes Total shareholders' equity 8,945 8,945 (2,018) (2,018) Non-
Slide 42: Capital Adequacy and Weighted Risks
2 – Capital Adequacy and Weighted Risks Capital adequacy (m EUR, except where indicated) Dec. 31, 2010 June 30, 2011 Dec. 31, 2011 Tier 1 capital 18,425 14,448 6,305 Total regulatory capital 20,636 16,472 8,589 Weighted risks 140,834 127,002 83,374 Tier 1 ratio 13.1% 11.4% 7.6% Capital adequacy rati
Slide 43: Data per Share
3 – Data per Share Number of shares December 31, 2010 June 30, 2011 December 31, 2011 Number of shares 1,846,406,344 1,948,984,474 1,948,984,474 of which Treasury Shares 307,548 324,633 324,633 (1) Number of options 70,960,487 70,049,801 64,474,089 Total Number of current/potential future shares 1,9
Slide 44: Legacy Portfolio Management Division (1/2)
4 – Legacy Portfolio Management Division (1/2) Total commitments 2010 2011 Var. YTD Current Constant (bn EUR) Dec. 31 March 31 June 30 Sept. 30 Dec. 31 exch. rate exch. rate Total commitments * 153,4 138,2 124,9 117,4 95,1 -58,4 -60,4 Financial Products portfolio 10,3 9,5 7,4 6,0 5,5 -4,7 -5,1 Bond
Slide 45: Legacy Portfolio Management Division (2/2)
4 – Legacy Portfolio Management Division (2/2) Bond portfolio in run-off Bond portfolio in run-off (EUR bn) AAA AA A BBB NIG Total Public sector 1.4 12.5 6.1 3.2 1.5 24.6 Sovereigns 0.8 1.7 7.0 0.8 4.1 14.4 Banks 1.8 2.4 3.8 0.9 0.6 9.6 Covered bonds 2.9 1.6 2.2 1.3 0.1 8.1 ABS 4.8 0.3 0.2 0.1 0.1 5
Slide 46: Maximum Credit Risk Exposure of the Group as at 31 December 2011
5 – Maximum Credit Risk Exposure of the Group as at 31 December 2011 DEXIA GROUP EXPOSURE BY GEOGRAPHICAL REGION DEXIA GROUP EXPOSURE BY CATEGORY OF COUNTERPART Activities Continued Activities Continued (m EUR) Total held for sale activities (m EUR) Total held for sale activities Austria 2.755 590 2
Slide 47: Maximum Credit Risk Exposure of Government Bonds on European countries
5 – Maximum Credit Risk Exposure of Government Bonds on a Selection of European countries as at 31 December 2011 Notional MCRE* o/w banking (m EUR) Greece 2,916 747 747 Ireland 0 0 0 Italy 9,604 9,779 9,779 Portugal 1,967 1,575 1,575 Spain 488 481 481 Total 14,975 12,581 12,581 MCRE* of the Greek bo
Slide 48: Ratings as at 23 February 2012
6 – Ratings as at 23 February 2012 Long-term Outlook Short-term Dexia Crédit Local Fitch A+ Negative outlook F1+ Moody's Baa1 Under review for possible downgrade P-2 Standard & Poor's BBB+ On credit watch negative A-2 Dexia Banque Internationale à Luxembourg Fitch A+ Rating watch negative F1+ Moody'
Slide 49: State Guarantees (amounts and amortization of funding)
7 – State Guarantees (amounts and amortization of funding) Total guaranteed debt outstanding as at 31 December 2011: EUR 24 bn under the 2008 scheme (LT guaranteed funding) and EUR 22 bn under the 2011 scheme (ST guaranteed funding in the frame of the temporary guarantee) State guarantee fees (EUR m
Slide 50: DenizBank's Consolidated Financial Statements
8 - DenizBank’s Consolidated Financial Statements (TRY m, IFRS, before Group adjusments) 2010 2011 % yoy Income 2,013 2,634 30.8% Expenses -978 -1247 27.4% Gross operating income 1035 1387 34.0% Cost of risk & impairments -270 -223 -17.5% Pre-tax income 764 1164 52.3% of which Retail & Commercial ba
Slide 51: Shareholding Structure as at 31 December 2011
9 – Shareholding Structure as at 31 December 2011 Belgian Federal State French State Caisse des Dépôts 5,7% 5,7% et Consignations 17,6% Three Belgian Regions 5,7% CNP Assurances 3,0% Holding Communal 14,3% Other Institutional Arco Group and Individual 12,0% Shareholders Ethias Finance 30,4% Employee
Slide 52: FY 2011 Results and Update on the Group's restructuring process
FY 2011 Results and Update on the Group’s restructuring process 23 February 2012