Slide 1: Contribution of MAPFRE MUTUALIDAD's assets and businesses to MAPFRE's listed holding company
Contribution of MAPFRE MUTUALIDAD’s assets and businesses to MAPFRE’s listed holding company Roadshow Presentation July 2006 1 Nº 2006-25
Slide 2: Roadshow Presentation Appendix Calendar and Contacts
Roadshow Presentation Appendix Calendar and Contacts
Slide 3: Overview of the change in corporate structure
Overview of the change in corporate structure MAPFRE is adopting a new corporate structure: – all of the Group’s activities and entities will be integrated under the present listed holding company CORPORACIÓN MAPFRE, which will be renamed as MAPFRE S.A.; – FUNDACIÓN MAPFRE will hold the majority con
Slide 4: Current corporate structure
Current corporate structure MAPFRE MUTUALIDAD Motor insurance business 49% 100% 75% 88% MAPFRE 55% MAPFRE MAPFRE BANCO DE SERVICIOS OTHER FINANCIEROS CAJA AGROPECUARIA SEGUROS AMÉRICA SUBSIDIARIES MADRID-MAPFRE CORPORACIÓN CORPORACIÓN MAPFRE GERAIS VIDA 51% MAPFRE CAJA MADRID HOLDING 100 % 87 % 88%
Slide 5: Expected corporate structure
Expected corporate structure FUNDACIÓN MAPFRE 100% CARTERA MAPFRE > 71% CORPORACIÓN MAPFRE S.A. MAPFRE 51% 100 % 100 % 87 % 88% 100 % MAPFRE CAJA MADRID HOLDING MAPFRE RED MAPFRE MAPFRE MAPFRE RE AUTOMÓVILES MAPFRE AMÉRICA ASISTENCIA MAPFRE 100% MAPFRE VIDA 100% SEGUROS MAPFRE INVERSIÓN 100% 100% 88
Slide 6: Contributed businesses: Description and contribution
CONTRIBUTED BUSINESSES: Description and contribution Attributable % Premiums profit Company participation Description 2005(1) 2005(2) MAPFRE AUTOMÓVILES 100% Leading Motor insurer in Spain with a market 2,291.1 258.7 share of 21% in 2005 MAPFRE AGROPECUARIA 100% Leading insurer in the agricultural a
Slide 7: MAPFRE Automóviles: Growth outlook
MAPFRE AUTOMOVILES: Growth outlook The Motor insurance business of MAPFRE MUTUALIDAD, which will be transferred to MAPFRE AUTOMÓVILES, is characterised by: – Its 21% market share in Spain; – The growth of its premiums volumes, which exceeded the market by 4.4 percentage points over the last 10 years
Slide 8: MAPFRE Automóviles: Growth of Motor insurance net premiums earned, 1995-2005
MAPFRE AUTOMOVILES Growth of Motor insurance net premiums earned, 1995-2005 (1) 269.2 248.8 CAGR 228.9 MAPFRE 10.4% MARKET 6.0% 209.4 182.8 152.1 118.1 110.2 100 102.7 101.2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1) Source: DGSFP. 1995 – 1997: Figures for MAPFRE MUTUALIDAD; 1998 – 20
Slide 9: MAPFRE Automóviles: Combined ratio of the Motor insurance business, 1995-2005
MAPFRE AUTOMOVILES Combined ratio of the Motor insurance business, 1995 – 2005 (1) Regulatory increase in the daily disability benefit AVERAGE 103.9% MAPFRE 94.9% MARKET 102.3% 101.0% 100.3% 100% 96.3% 94.7% 94.2% 92.6% 91.5% 90.3% 90.5% 88.9% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1
Slide 10: Benefits of the transaction
Benefits of the transaction Greater management efficiency and improved corporate governance: – Simplified structure – Streamlined operating coordination among units and within the MAPFRE Network – Larger balance of independent directors Better position for the minority shareholder: – Clear separatio
Slide 11: Exchange ratio
Exchange ratio The Board of Directors, in its meeting of 29th June, determined the exchange ratio at which CARTERA MAPFRE will subscribe for 192,115,506 new shares by contributing to CORPORACIÓN MAPFRE its portfolio of shareholdings. The following were taken into account in the definition of the exc
Slide 12: CORPORACIÓN MAPFRE capital increase
CORPORACIÓN MAPFRE capital increase CORPORACIÓN MAPFRE, subject to the prior approval of its Extraordinary Shareholders’ Meeting, will carry out a capital increase without pre-emption rights, divided into two tranches: – The first tranche (in-kind) will be exclusively for CARTERA MAPFRE, which will
Slide 13: Valuation multiples and financial impact
Valuation multiples and financial impact The sum of the in-kind and cash contributions implies a valuation multiple of 1.82x the Adjusted Net Asset Value based on the actual figures for fiscal year 2005 and of 11.4x the pro forma net income for 2005 at the closing price of 06.07.06 (1.96x and 12.3x,
Slide 14: The new role of FUNDACIÓN MAPFRE
The new role of FUNDACIÓN MAPFRE FUNDACIÓN MAPFRE will become the majority shareholder in CORPORACIÓN MAPFRE (the future MAPFRE S.A.), pursuant to MAPFRE MUTUALIDAD’s by-laws, which establish that the company, in the event of a dissolution, shall confer on said Foundation its equity reserves. In the
Slide 15: New corporate governance model
New corporate governance model The new corporate structure will result in a revised corporate governance for the MAPFRE Group. At MAPFRE, S.A.: – The members of the Board of Directors will be appointed by MAPFRE S.A.’s General Shareholder Meeting – One third of the Board directors will be minority s
Slide 16: Summarised schedule
Summarised schedule 29 May 30-31 May 15 June 29 June July 25 July Q4 ‘06 Q1 ‘07 Approval of the Capital increase Filing with the in-kind capital by CNMV and press Approval of the Publication of increase without CORPORACIÓN conference change in corporate SISTEMA MAPFRE’s pre-emption MAPFRE (once firs
Slide 17: Appendix
Roadshow Presentation Appendix Calendar and Contacts
Slide 18: MAPFRE S.A.: Pro forma income statement
MAPFRE S.A.: Pro forma income statement (1) 2005 2004 % 05/04 NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 7,778.8 6,724.5 15.7% Premiums earned, net of ceded and retroceded reinsurance 6,387.6 5,465.3 16.9% Net claims incurred and variation in other technical provisions -4
Slide 19: MAPFRE S.A.: Pro forma balance sheet
MAPFRE S.A.: Pro forma balance sheet 2005 2004 % 05/04 Investments and cash 24,614.4 21,911.1 12.3% Technical reserves 23,283.6 20,264.2 14.9% - Life insurance reserves 15,041.1 13,679.3 10.0% - Other technical reserves 8,242.5 6,584.9 25.2% Financial debt 615.4 490.9 25.4% Million euros Appendix 19
Slide 20: Contributed businesses: Shareholdings transferred to CORPORACIÓN MAPFRE
CONTRIBUTED BUSINESSES: Shareholdings transferred to CORPORACIÓN MAPFRE Shareholdings that will be contributed to CORPORACIÓN MAPFRE (the future MAPFRE S.A.): – MAPFRE AUTOMÓVILES S.A. (100%) – MAPFRE AMERICA VIDA S.A. (87.57%) – MAPFRE AGROPECUARIA, COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS S.
Slide 21: Contributed businesses: Pro forma income statement
CONTRIBUTED BUSINESSES: Pro forma income statement (1) (2) Million euros 2005 2004 % 05/04 NON-LIFE INSURANCE AND REINSURANCE (1)The impact of the reinsurance Gross written and accepted premiums 2,537.2 2,295.0 10.6% accepted from MAPFRE RE, which will be discontinued Premiums earned, net of ceded a
Slide 22: Contributed businesses: Pro forma balance sheet
CONTRIBUTED BUSINESSES: Pro forma balance sheet 2005 2004 % 05/04 ASSETS Fixed assets 549.3 474.7 15.7% Investments and cash 2,800.3 2,131.2 31.4% Other assets 958.0 833.7 14.9% TOTAL ASSETS 4,307.6 3,439.7 25.2% LIABILITIES Equity (1) 899.7 537.9 67.3% Financial debt 100.2 90.7 10.5% Technical rese
Slide 23: Contributed businesses: Development of the total cost of Non-Life direct insurance claims
CONTRIBUTED BUSINESSES: Development of the total cost of Non-Life direct insurance claims CONTRIBUTED BUSINESSES 1999 and prior 2000 2001 2002 2003 2004 2005 Year end 1,092,805 1,274,225 1,407,381 1,580,866 1,708,442 2,045,017 One year later 1,096,028 1,249,306 1,349,562 1,508,710 1,623,562 Two year
Slide 24: MAPFRE Automóviles: Key pro forma figures
MAPFRE AUTOMOVILES: Key pro forma figures (1) 2005 2004 % 05/04 Gross written and accepted premiums 2,291.1 2,156.4 6.2% Net premiums earned 2,197.9 2,088.6 5.2% Attributable result (2) 258.7 255.9 1.1% 2005 2004 % 05/04 ASSETS Fixed assets 285.8 255.3 11.9% Investments 2,529.6 2,058.7 22.9% LIABILI
Slide 25: MAPFRE Agropecuaria: Business profile
MAPFRE AGROPECUARIA: Business profile MAPFRE AGROPECUARIA specialises in the segment of products for the agricultural and livestock sector Its main competitive advantage lies in its ability to offer comprehensive solutions for this sector’s specific risks It is the leading contributing company in Co
Slide 26: MAPFRE Agropecuaria: Growth outlook
MAPFRE AGROPECUARIA: Growth outlook MAPFRE AGROPECUARIA’s future growth will come from: – An increase in the business from Agroseguro due to: • initiatives from the Public Administration aimed at increasing the usage of insurance within the agricultural and livestock sector; • increasing level of pr
Slide 27: MAPFRE Agropecuaria: Income statement
MAPFRE AGROPECUARIA: Income statement 2005 2004 % 05/04 Gross written and accepted premiums 242.4 196.0 23.7% Net premiums earned 185.0 152.1 21.6% Net claims incurred -138.2 -108.3 27.6% Net operating expenses -30.6 -29.6 3.4% Other technical income and expenses -4.8 -3.3 45.5% Technical result 11.
Slide 28: MAPFRE Agropecuaria: Balance sheet
MAPFRE AGROPECUARIA: Balance sheet 2005 2004 % 05/04 ASSETS Fixed assets 0.2 0.3 -33.3% Investments 175.6 82.0 114.1% Participation of reinsurance in technical reserves 15.7 16.6 -5.4% Other assets 117.9 156.3 -24.6% TOTAL ASSETS 309.4 255.3 21.2% LIABILITIES Shareholders' equity 101.1 91.1 11.0% Te
Slide 29: MAPFRE Agropecuaria: Solvency margin
MAPFRE AGROPECUARIA: Solvency margin 2005 2004 Minimum required solvency margin 36.5 35.0 Solvency margin 57.0 47.7 Coverage 2.56 2.37 Million euros Appendix 29 Nº 2006-25
Slide 30: MAPFRE America Vida: Business profile
MAPFRE AMERICA VIDA: Business profile MAPFRE AMERICA VIDA is the holding company for MAPFRE’s Life assurance subsidiaries in Latin America It currently operates in 6 countries Its subsidiaries operate in coordination with MAPFRE AMERICA MAPFRE MUTUALIDAD has an 87.6% shareholding in this company. MA
Slide 31: MAPFRE America Vida: Growth outlook
MAPFRE AMERICA VIDA: Growth outlook MAPFRE AMÉRICA VIDA has recorded a significant increase in its premiums volume over the last few years, together with a notable improvement in its margins, which allowed it to make a profit in 2005. Over the coming years, its business development will be underpinn
Slide 32: MAPFRE America Vida: Income statement
MAPFRE AMERICA VIDA: Income statement 2005 2004 % 05/04 Gross written and accepted premiums 290.3 191.0 52.0% Net premiums earned 245.8 173.0 42.1% Net claims incurred -159.9 -109.9 45.5% Net operating expenses -103.7 -72.9 42.2% Other technical income and expenses 1.0 0.7 42.9% Technical result -16
Slide 33: MAPFRE America Vida: Balance sheet
MAPFRE AMERICA VIDA: Balance sheet 2005 2004 % 05/04 ASSETS Fixed assets 6.3 5.4 16.7% Investments 329.7 212.7 55.0% Participation of reinsurance in technical reserves 18.9 12.0 57.5% Other assets 129.3 60.5 113.7% TOTAL ASSETS 484.3 290.6 66.7% LIABILITIES Shareholders' equity 70.1 57.4 22.1% Minor
Slide 34: MAPFRE America Vida: Solvency margin
MAPFRE AMERICA VIDA: Solvency margin 2005 2004 Minimum required solvency margin(1) 54.0 29.1 Solvency margin 42.6 43.5 Coverage 1.79 2.50 1) Figure corresponding to the sum of the stand alone minimum required margins for each country Million euros Appendix 34 Nº 2006-25
Slide 35: MAPFRE Seguros Gerais: Business profile
MAPFRE SEGUROS GERAIS: Business profile MAPFRE SEGUROS GERAIS writes Non-life insurance in Portugal At the end of 2005, it had a portfolio of 238,769 outstanding policies, an increase of 15.8% MAPFRE MUTUALIDAD has a 75% shareholding in this company (1). NON-LIFE PREMIUMS GROWTH MARKET SHARE EVOLUTI
Slide 36: MAPFRE Seguros Gerais: Growth outlook
MAPFRE SEGUROS GERAIS: Growth outlook During the past five years MAPFRE SEGUROS GERAIS has achieved growth rates well above the average of the Portuguese market, together with satisfactory technical results. This has been possible due to: – The adoption of management criteria similar to those used b
Slide 37: MAPFRE Seguros Gerais: Income statement
MAPFRE SEGUROS GERAIS: Income statement 2005 2004 % 05/04 Gross written and accepted premiums 96.3 78.9 22.1% Net premiums earned 79.9 65.0 22.9% Net claims incurred -52.1 -40.7 28.0% Net operating expenses -24.6 -23.4 5.1% Other technical income and expenses 0.1 0.0 --- Technical result 3.3 0.9 ---
Slide 38: MAPFRE Seguros Gerais: Balance sheet
MAPFRE SEGUROS GERAIS: Balance sheet 2005 2004 % 05/04 ASSETS Goodwill 5.4 0.0 --- Fixed assets 21.4 20.7 3.4% Investments 100.0 81.9 22.1% Participation of reinsurance in technical reserves 6.9 6.1 13.1% Other assets 45.3 43.9 3.2% TOTAL ASSETS 179.0 152.6 17.3% LIABILITIES Shareholders' equity 68.
Slide 39: MAPFRE Seguros Gerais: Solvency margin
MAPFRE SEGUROS GERAIS: Solvency margin The ROE of MAPFRE SEGUROS GERAIS is low due to its high solvency margin, despite its high ratio of results before tax and minority shareholders to premiums. Profitability will improve gradually as volumes increase. 2005 2004 Minimum required solvency margin 14.
Slide 40: Banco de Servicios Financieros Caja Madrid – MAPFRE: Business profile
BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE: Business profile BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE carries out its lending activities through the following companies: – FINANMADRID and FINANMADRID MEXICO: consumer loans, distributed mainly through the MAPFRE network in Spain a
Slide 41: Banco de Servicios Financieros Caja Madrid – MAPFRE: Growth outlook
BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE: Growth outlook Currently, the Bank is experiencing very strong growth, especially in consumer lending, where margins are relatively wider. The consequences of this development are: – An increase in the average return on the loan portfolio; – An in
Slide 42: Banco de Servicios Financieros Caja Madrid – MAPFRE: Income statement
BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE: Income statement 2005 2004 % 05/04 Net interest income 68.5 60.9 12.5% Commissions 2.1 -1.9 --- Other ordinary income/expenses -0.1 -0.1 0.0% Ordinary Revenues 70.5 59.0 19.5% Operating expenses -34.6 -28.8 20.1% Operating Profits 35.9 30.2 18.9%
Slide 43: Banco de Servicios Financieros Caja Madrid – MAPFRE: Balance sheet
BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE: Balance sheet 2005 2004 % 05/04 ASSETS Lending portfolio (net) 3,358.5 2,645.6 26.9% Other assets 97.6 97.7 -0.1% TOTAL ASSETS 3,456.1 2,743.3 26.0% LIABILITIES Interbank deposits 2,830.4 2,230.1 26.9% Client deposits 263.2 219.5 19.9% Shareholder
Slide 44: Banco de Servicios Financieros Caja Madrid – MAPFRE: Capital ratios
BANCO DE SERVICIOS FINANCIEROS CAJA MADRID – MAPFRE: Capital ratios 2005 2004 % 05/04 Capital 157.5 127.5 23.5% Reserves 135.0 107.3 25.8% Deductions -46.8 -44.7 4.7% CAPITAL (Tier 1) 245.6 190.1 29.2% RISK-WEIGHTED ASSETS 2,794.5 2,305.8 21.2% BIS Ratio (%) 8.79% 8.24% Million euros Appendix 44 Nº
Slide 45: Calendar and Contacts
Roadshow Presentation Appendix Calendar and Contacts
Slide 46: Provisional calendar for 2006
Provisional calendar for 2006 25/07/06 Publication of First Half 2006 results 25/07/06 Analysts’ presentation of First Half 2006 results – Madrid 26/07/06 Analysts’ presentation of First Half 2006 results – London 26/10/06 Publication of Third Quarter 2006 results 26/10/06 Analysts’ presentation of
Slide 47: Investor Relations Department
Investor Relations Department Luigi Lubelli Finance Director +34-91-581-6071 Alberto Fernández Sanguino +34-91-581-2255 Beatriz Izard Pereda +34-91-581-2061 Antonio Triguero Sánchez +34-91-581-5211 Marisa Godino Alvarez Assistant +34-91-581-2985 CORPORACIÓN MAPFRE, S.A. Investor Relations Department
Slide 48: Disclaimer
Disclaimer This document is purely informative. Its content does not constitute, nor can it be interpreted as, an offer or an invitation to sell, exchange or buy, and it is not binding on the issuer in any way. The information about the plans of the Company, its evolution, its results and its divide