Allianz SE · XETR:ALV

Allianz — Non-Deal Roadshow (April 2005)

29 slides from Allianz's roadshow presentation, April 2005

  1. Slide 1: Allianz Group Roadshow April 2005

    Allianz Group +One Roadshow April 2005

  2. Slide 2: Group financial results 2004

    Helmut Perlet - CFO Allianz AG Group financial results 2004 Roadshow April 2005

  3. Slide 3: "3+one": goals 2004 achieved

    B. Group financial results 2004 “3+one”: goals 2004 achieved Highlights 2004 Operating profit evolution ƒ Managed growth: dynamic expansion in L/H and AM, selective 6,856 growth in P/C, stabilized at Dresdner Bank ƒ Operational discipline: 4,066 reduction of expenses, improvement of underwriting res

  4. Slide 4: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset Management ƒ Investment income II. Protect and enhance capital base B2

  5. Slide 5: Revenue development: managed growth

    B. Group financial results 2004 Revenue development: managed growth 4Q total revenues1 (EUR bn) 12M total revenues1 (EUR bn) Total Internal Total Internal growth growth2 growth growth2 22.8 24.3 (%) (%) 93.8 96.9 (%) (%) 2.5 AM 12.4 22.7 2.2 0.7 AM 18.2 33.7 6.2 Banking -4.5 0.3 0.6 1.5 6.5 Banking

  6. Slide 6: Expenses: all segments improve

    B. Group financial results 2004 Expenses1: all segments improve (EUR m) P/C Banking L/H AM2 Evolution of expenses -15.2% -18.9% 3,751 15,272 3,420 1,526 13,318 526 3,181 304 12,389 1,207 307 1,140 7,224 1,739 1,488 1,397 6,052 5,459 469 1,911 536 442 1,719 1,636 950 1,159 1,035 4,611 4,340 4,154 4Q

  7. Slide 7: Operating profit: all segments improve

    B. Group financial results 2004 Operating profit1: all segments improve (EUR m) 4Q 2004 ∆4Q 04/03 12M 2004 ∆12M 04/03 Comments 12M 04 P/C Combined ratio down 1,081 528 3,979 1,542 4.1%-p to 92.9% 12% improvement as L/H 370 -13 1,418 153 operating CIR2 decreases 0.3% to 95.5% Cost & risk profile Bank

  8. Slide 8: Better quality of result

    B. Group financial results 2004 Better quality of result (EUR m) Evolution of income b/ taxes, minorities and goodwill amortization 2,790 Taxes 884 6,347 increased by EUR 1,581m 1,351 Taxes Banking 1,727 restructuring 4,274 EUR 600m Minorities Taxes 1,257 146 -2,952 Minorities Goodwill 825 1,164 Goo

  9. Slide 9: We achieved our goals...

    B. Group financial results 2004 We achieved our goals... RoRACN (operating units)1 RoRACN (Group)2 IFRS RoE b/GW +3.2%-p +3.9%-p -1.8%-p 16.2% 16.5% 13.0% 12.6% 13.1% 11.3% XX% 2003 2004 2003 2004 2003 2004 ∅ Capital (EUR bn) 36.3 34.4 32.6 31.2 25.1 29.7 1) RoRACN of operating units is before effec

  10. Slide 10: ...but for numerous companies, 15% RoRACN still remains a goal to achieve

    B. Group financial results 2004 ...but for numerous companies, 15% RoRACN still remains a goal to achieve1 RAC and RoRACN2 RoRACN 80% 2004 ƒ Clear progress 70% 2003 against 2003 60% 15.0% ƒ 74% of RAC earn 50% 8.15% CoC1 cost of capital 48% 40% 30% ƒ 48% of RAC exceed 74% 15% RoRACN target 20% 15.0

  11. Slide 11: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset Management ƒ Investment income II. Protect and enhance capital base B 11

  12. Slide 12: P/C overview: focus on underwriting profitability pays off

    B. Group financial results 2004 P/C overview: focus on underwriting profitability pays off (EUR m) Drivers Operating profit ƒ Strong combined ratio of 92.9% 95.5% 63.3% (12M 03: 97.0%) reflects: 3,979 - selective growth in profitable 1,081 markets or segments 2,437 - strict underwriting guidelines 5

  13. Slide 13: P/C: ...leads to strongly improved combined ratio

    B. Group financial results 2004 P/C: ...leads to strongly improved combined ratio (in %) Combined ratio 12M 03 12M 04 Combined ratio SGD (German P/C Group) 93.0 88.2 Claims ratio Expense ratio Adjustment4 Allianz AG1 100.2 87.1 -12.8%-p AGF2 102.8 98.5 105.7 RAS Group Italy 97.0 95.7 4.0 97.0 95.8 9

  14. Slide 14: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset Management ƒ Investment income II. Protect and enhance capital base B 17

  15. Slide 15: L/H overview: ongoing profitable growth

    B. Group financial results 2004 L/H overview: ongoing profitable growth (EUR m) Drivers Operating profit ƒ Operating CIR1 improved by -3.4% 12.1% 0.3%-p to 95.5%, driven 1,418 383 370 1,265 especially by: - increased asset base - pricing of new business 4Q 2003 4Q 2004 12M 2003 12M 2004 - efficiency

  16. Slide 16: Embedded value after minorities

    B. Group financial results 2004 Embedded value after minorities (EUR m) Per region and by components 2004 PVFP - CRC - O&G RAC + XS 12, 389 PVFP: 7,177 5,043 CRC: 1,600 O&G: 534 RAC: 5,982 3,722 XS: 1,364 2,726 7,346 2,657 2,457 1,005 1,612 1,341 952 684 331 1,721 568 1,705 1,265 928 772 955 -624 Va

  17. Slide 17: Value of new business by region

    B. Group financial results 2004 Value of new business by region (EUR m) Value of new business at issue before and after cost of risk-adjusted capital (a/ min.) 2003 Old model 2004 EEV ƒ Germany: Margin increased reflecting NB NB margin NB NB margin Spread1 management’s long-term profit Before CRC Va

  18. Slide 18: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset management ƒ Investment income II. Protect and enhance capital base B 21

  19. Slide 19: Dresdner Bank overview: back on track

    B. Group financial results 2004 Dresdner Bank1 overview: back on track (EUR m) Drivers Operating profit (loss) 599 ƒ Operating profit improved by EUR 1.1bn to EUR 0.6bn 57 ƒ Net income after restructuring costs EUR 142m; target over-achieved -259 -482 ƒ Net loss in 4Q 04 due to accelerated 4Q 2003 4

  20. Slide 20: Dresdner Bank – IRU: wind down by agreed and initiated transactions

    B. Group financial results 2004 Dresdner Bank – IRU: wind down will be accomplished by agreed and initiated transactions (EUR m) Exposure Down from 264 624 EUR 35.5bn 648 since 2003 9,690 3,671 1,629 2,011 670 173 Actual Pending Pending Repayments, Retransfers Large Large Transaction Other 31/12/04

  21. Slide 21: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset Management ƒ Investment income II. Protect and enhance capital base B 29

  22. Slide 22: Asset Management overview: profitable growth continues

    B. Group financial results 2004 Asset Management overview: profitable growth continues (EUR m) Drivers Operating profit ƒ Profitability improved for 3rd 35.6% 16.8% consecutive year; 4Q first quarter 856 733 with positive net income ƒ Strong net inflows due to superior 278 205 performance in fixed i

  23. Slide 23: Asset Management: acquisition-related expenses clearly decrease from 2005 onwards

    B. Group financial results 2004 Asset Management: acquisition-related expenses clearly decrease from 2005 onwards Acquisition related expenses (before taxes, EUR m) Comment -655 1,015 -570 ƒ Due to IFRS 3, goodwill amortization has been 212 new abandoned after 2004 803 385 B-units 173 173 ƒ Due to I

  24. Slide 24: Agenda: where do we stand

    Agenda: where do we stand I. Substantially strengthen operating profitability ƒ Group ƒ P/C ƒ L/H ƒ Banking ƒ Asset Management ƒ Investment income II. Protect and enhance capital base B 37

  25. Slide 25: Capital base: further strengthened

    B. Group financial results 2004 Capital base: further strengthened IFRS equity (EUR bn) Group solvency (in %) Risk capital surplus1 (EUR bn) +7.8% +17.6%-p +33.9% 223.9 206.3 30.8 28.6 100% 15.8 11.8 2003 2004 2003 2004 2003 2004 Capital significantly Solvency margin reflects Comfortable risk buffer

  26. Slide 26: Summary: we delivered what we promised

    B. Group financial results 2004 Summary: we delivered what we promised “All targets 2004 achieved” ƒ Operating profitability substantially strengthened across all segments: - P/C: combined ratio of 92.9% - L/H: operating profit of EUR 1.4bn - Dresdner Bank: bottom-line profit - AM: CIR down to 62.9%

  27. Slide 27: Accounting changes 2005

    B. Group financial results 2004 Accounting changes 2005 Topic Explanation IFRS2 Cash-settled plans to be adjusted from intrinsic valuation to fair valuation; Share-based PIMCO B-Units to be reclassified from equity-settled plan to cash-settled plan compensation (put option included). Effects1: equit

  28. Slide 28: Targets 2005

    B. Group financial results 2004 Targets 2005 Focus on profitable and sustainable growth: Group-wide revenue increase in line with 2004 P/C L/H Banking Asset Mgmt. Strong combined Operating profit Earn cost of 10% increase in ratio below 95% of at least capital operating profit1 EUR 1.5bn Caveats, e.

  29. Slide 29: Disclaimer

    G. Appendix 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 are based on managemen

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