Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2005)
25 slides from Commerzbank's investor day presentation, Sep 14, 2005
Slide 1: Investors' Day: commerzbank – quo vadis?
Investors‘ Day commerzbank – quo vadis? Frankfurt, 14.09.2005 Klaus-Peter Müller Chairman of the Board of Managing Directors
Slide 2: Commerzbank stock in 2005 has outperformed the DAX and German financial sector
Investors’ Day 2005 Commerzbank stock in 2005 has outperformed the DAX and German financial sector… Share price development 01/01/2005 – 09/07/2005 Commerzbank 44% HVB-Group 40% DAX 16% Deutsche Bank 16% Allianz 11% Münchener Rück 1% Source: Reuters 2/23
Slide 3: Accompanied by significant increase in profitability
Investors’ Day 2005 …accompanied by significant increase in profitability Operating profit RoE after tax in € m in % >8 4.3 1,011 -2.3 559 as of 832 H1 `05 192 -19.6 2002 2003 2004 2005e 2002 2003 2004 2005e 3/23
Slide 4: Core financial figures reflect continuous improvement
Investors’ Day 2005 Core financial figures reflect continuous improvement Financial Highlights 2002 2003 2004* H1 `05 Comments Revenues (€ m) 5,100 5,070 5,504 3,027 Increased revenues Cost/income ratio (%) 77.3 73.3 70.9 64.5 Sharpened business profile Operating RoE** (%) 1.6 4.9 9.9 16.5 Positive
Slide 5: Roadmap: Four steps to solidify Commerzbank
Investors’ Day 2005 Roadmap: Four steps to solidify Commerzbank 4. 3. Growth 2. Profitability Capital 1. Stability 5/23
Slide 6: Business model: focussed on core strengths
Investors’ Day 2005 Business model: focussed on core strengths Where we are coming from: Universal Bank with Global Aspirations Examples: • Global Investment Bank & Asset Manager • Member Deutschland AG • Target clients from global blue chips to retail We are: a bank focussed on core strengths Core
Slide 7: Spinning-off non-core assets, strengthening core assets
Investors’ Day 2005 Spinning-off non-core assets, strengthening core assets Major participations of Revaluation reserve Commerzbank in € bn + €654m as of now pre-revaluation post-revaluation 1.69 1.60 1.51 1.43 1.24 1.25 1.21 ≥ 10% KEB 1.04 0.65 ~ 10% Linde (DAX) 03/03 06/03 1 - 5% Banca Intesa SpA
Slide 8: Cost management: costs reduced and well under control
Investors’ Day 2005 Cost management: costs reduced and well under control Operating expenses Start cost in € bn initiative I 1.62 Start cost initiative II 1.48 1.46 1.49 1.43 1.40 1.38 1.31 1.27 1.20 1.23 1.22 1.18 1.15 1.14 1.08 1.11 1.10 1.13 1.08 1.11 1.09 40.1 40.4 39.0 39.5 39.5 38.6 38.0 36.4
Slide 9: De-risked: Commerzbank - a safer bank
Investors’ Day 2005 De-risked: Commerzbank - a safer bank Trading portfolio de-risked Loan-loss cover ratio comfortable (principle I risks) in € bn In excess: 0.63 1.22 1.09 in € m* 7.71 7.51 7.29 66.8 Non-performing loans 54.7 109% 119.3% 117.5% Loan-loss provisions 5.51 5.35 5.41 32.9 7.08 6.29 6.
Slide 10: Capital & Liquidity: RWA stabilized, capital base strengthened
Investors’ Day 2005 Capital & Liquidity: RWA stabilized, capital base strengthened and liquidity status comfortable Risk-weighted assets in € bn vs. Tier I Liquidity prudently managed capital ratio* Reduction in ratio due to enforcement of “FKR”** 7.8% 1.20 7.7% Target corridor 7.3% 7.5% 7.3% 7.2% 7
Slide 11: Roadmap: Four steps to solidify Commerzbank
Investors’ Day 2005 Roadmap: Four steps to solidify Commerzbank 4. 3. Growth 2. Profitability Capital 1. Stability 11/23
Slide 12: New customer oriented organization: clear segmentation and responsibilities
Investors’ Day 2005 New customer oriented organization: clear segmentation and responsibilities Commerzbank CRO: Hartmann CEO: Müller CFO: Strutz PCAM CIB Private & International Asset Corporate Corporates & Business Mittelstand Management Banking Markets (C&M) Customers • Retail Banking • Asset • M
Slide 13: All segments on course to improved profitability levels
Investors’ Day 2005 All segments on course to improved profitability levels operating profit in € m Mittelstand: Int. Corporate Banking: Corporates & Markets: Significant progress ´05 weak treasury, solid core, Successful restructuring Turnaround started/ optimisation kicked-off on the way as of 311
Slide 14: C&M's Investmentbank - The Restructuring Progress
Investors’ Day 2005 C&M´s Investmentbank - The Restructuring Progress: Break-even in < three quarters, costs lowered by > €100m already! Nov. `04: What did we promise? What have we reached so far? In € m 31.07. Target post- 31.07. % of target Outlook on 2006 (pro rated 7 months) 2004 restructuring 2
Slide 15: C&M's Investmentbank - Efficiency up, risk down
Investors’ Day 2005 C&M´s Investmentbank - The Restructuring Progress: Efficiency up, risk down! Previous areas of concern adressed... Regional set-up Productivity gap High earnings too broad between locations volatility FTE VaR €m FTE 118 576 30 425 387 20 279 24 31 10 0 Overnight, 97,5% 0 09/04 07
Slide 16: Mortgage Banks/Eurohypo: the recurring question on recurring earnings
Investors’ Day 2005 Mortgage Banks/Eurohypo: the recurring question on recurring earnings... Impact Eurohypo on CB´s H1 `05 results EssenHyp EEPK Eurohypo in € m Shareholding 51% 75% 31.8% CB total income 3,027 Consolidation Full At-Equity thereof • Disposals of 234 Non-recurring, not Interest Incom
Slide 17: Roadmap: Four steps to solidify Commerzbank
Investors’ Day 2005 Roadmap: Four steps to solidify Commerzbank 4. 3. Growth 2. Profitability Capital 1. Stability 17/23
Slide 18: Commerzbank's future growth: three principal paths
Investors’ Day 2005 Commerzbank´s future growth: three principal paths In-Market Merger Organic growth: Cross-Border Merger Through optimization of existing business model (defined programs) Acquisitions: Stand-alone Optimization ► core regions • Organic growth ► core products • Acquisitions ► core
Slide 19: Roadmap: Four steps to solidify Commerzbank
Investors’ Day 2005 Roadmap: Four steps to solidify Commerzbank 4. 3. Growth 2. Profitability Capital 1. Stability 19/23
Slide 20: CB's Tier 1 not excessive in European terms
Investors’ Day 2005 CB´s Tier 1 not excessive in European terms Tier 1 Ratio European banks Core Tier 1 Tier 1 (BIS) in % Ø: 6.7% Ø: 8.1% UBS 10.6 12.2 Credit Suisse 9.9 10.9 ABN Amro 7.5 9.6 Deutsche Bank 7.4 9.1 HSBC 7.5 8.7 HBOS 7.0 8.2 UniCredit 7.4 8.0 SEB 6.7 7.9 Banca Intesa 6.9 7.8 SocGen 5.
Slide 21: Capital management: Tier 1 ratio in line with target range
Investors’ Day 2005 Capital management: Tier 1 ratio in line with target range Development of Tier 1 capital ratio (BIS) Capital management in % Projected Tier 1 ratio (BIS) in line with 7.5 CB target range 7.0 ≥ 7.2 target 6.8 corridor CB main focus: realize further growth potential (organic and ac
Slide 22: Return on equity: Commerzbank targets earnings quality
Investors’ Day 2005 Return on equity: Commerzbank targets earnings quality We want to …. … meet our goals? Of course! … beat your score? You bet! Target Return on Equity (after tax) Analyst Consensus: CB net profit 2005-2007e in € m 1,076 956 2006e 2005e 780 2004 > 10% > 8% Long-term cost 4.3% Curre
Slide 23: Commerzbank - a team determined to win!
Investors’ Day 2005 Commerzbank - a team determined to win! 23/23
Slide 24: For more information, please contact Commerzbank Investor Relations
For more information, please contact: Sandra Büschken Commerzbank Investor Relations P: +49 69 136 23617 M: sandra.bueschken@commerzbank.com Jürgen Ackermann Ute Heiserer-Jäckel Head of Investor Relations P: +49 69 136 41874 P: +49 69 136 22338 M: ute.heiserer-jaeckel@commerzbank.com M: juergen.acke
Slide 25: Disclaimer
Investors’ Day 2005 Disclaimer / investor relations / This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers. / Any information in this presentation is based on data obtained from sources considered to be reliable,