Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Investor Presentation (October 2010)
30 slides from Deutsche Pfandbriefbank's investor presentation, Oct 5, 2010
Slide 1: Transfer of assets as key milestone for re-positioning
Analyst/Investor Presentation October 5, 2010 Transfer of assets as key milestone for re-positioning
Slide 2: Disclaimer
Disclaimer The following presentation provides provisional information and only a rough picture of the transaction effects. However, figures and information will only then be finalised when the final accounts as of the transfer date have been completed, and this is not yet the case. The volumes, gra
Slide 3: Asset transfer to FMS-WM is the key milestone for stabilisation of HRE Group
The asset transfer to FMS Wertmanagement (FMS-WM) is the key milestone for the stabilisation of HRE Group FMS-WM allows HRE Group to dispose of non-strategic assets and risk positions and facilitates the envisaged balance sheet reduction – assets transferred at book value Improved balance sheet stru
Slide 4: HRE Group structure
HRE Group structure Federal Republic of Germany SoFFin/FMSA 100% Sponsorship/ obligation to compensate for loss Hypo Real Estate FMS Holding AG Wertmanagement (Munich) 100% 100% Issuer of publicly traded capital market products Deutsche DEPFA Bank plc1 Pfandbriefbank AG (Dublin) (Munich) 100% DEPFA
Slide 5: Transfer of EUR ~173 bn of non-strategic assets and risk positions to FMS-WM
HRE Group Transfer of EUR ~173 bn of non-strategic assets and risk positions to FMS-WM Nominal1 (excl. derivatives), based on simulation as of 09/2010 EUR billion ~173 ~42 N AL VI SI O ~131 PRO Total pbb DEPFA Note: Figures may not add up due to rounding 1 Excl. derivatives, undrawn lines or repo tr
Slide 6: Transfer of all SoFFin guaranteed bonds to FMS-WM
HRE Group External liquidity support no longer required – transfer of all SoFFin guaranteed bonds to FMS-WM Transfer of all SoFFin guaranteed bonds to FMS-WM EUR 124 bn SoFFin guaranteed bonds, incl. EUR 20 bn to secure transfer and settlement risk out of the transaction When operational stability a
Slide 7: Transfer of EUR ~42 bn from pbb to FMS-WM
pbb Transfer of EUR ~42 bn from pbb to FMS-WM Nominal1 (excl. derivatives), based on simulation as of 09/2010 EUR billion ~42 Reduction of non-strategic assets Asset selection criteria Reduction of credit risks ~27 Priority Funding optimisation Reduction of concentration ~3 and duration risks I ON A
Slide 8: Transfer of EUR ~131 bn from DEPFA to FMS-WM
DEPFA Transfer of EUR ~131 bn from DEPFA to FMS-WM Nominal1 (excl. derivatives), based on simulation as of 09/2010 EUR billion ~131 HPBI ~3 Funding optimisation/ minimise unsecured ~28 funding need DEPFA ACS ~30 Discontinuation of Asset selection criteria non-strategic business (e.g. IFU) Priority R
Slide 9: Service Level Agreement (SLA) for the servicing of transferred assets
Service Level Agreement (SLA) for the servicing of transferred assets Service Level Several functions will be performed by FMS-WM from day 1 (e.g. Treasury) Agreement (SLA) FMS-WM will pay a market adequate fee for the servicing The majority of the SLA will initially last for three years and can be
Slide 10: HRE Group – Cover Pools
HRE Group – Cover Pools Transfer of EUR ~28 bn Public Sector cover pool assets to FMS-WM and restructuring of cover pools in three main steps Transfer of EUR ~28 bn of cover pool assets to FMS-WM Cover pool assets 1 as of Oct 1, 2010 Nominal, EUR billion 2 3 NAL pbb Public Sector: O VIS IO EUR ~5 bn
Slide 11: pbb Public Sector Cover Pool
pbb Public Sector Cover Pool Changes Public Sector cover pool / by regions Nominal, 06/2010 45% before transfer / Total: EUR 50 bn1 after restructuring / Total: EUR ~42 bn1 N AL VI SIO 42% PRO 15% 11% 8% 6% 6% 13% 11% 4% 7% 3% 2% 2% 2% 2% 5% 1% 1% <1% <1% <1% 3% 2% 2% 2% 2% 0% 0% 1% <1% 0% <1% 0% Ge
Slide 12: pbb Mortgage Cover Pool
pbb Mortgage Cover Pool No change of pbb Mortgage cover pool as EUR ~8 bn asset risk is transferred synthetically – assets remain within cover pool Mortgage cover pool / by regions Nominal, 06/2010 56% Total: EUR 23 bn1 11% 7% 7% 6% 4% 4% 2% 1% <1% <1% <1% Germany UK Scandi- USA France CEE Belenux S
Slide 13: pbb Cornerstones of business model and Outlook
pbb Cornerstones of business model and Outlook Cornerstones of business model Outlook Concentration on Pfandbrief eligible Public Sector pbb expected to return to profitability in 2011 and Real Estate business Core capital ratio1 expected to be >10% Pfandbrief as main Funding instrument – pbb not de
Slide 14: DEPFA Cornerstones of new business model and Outlook
DEPFA Cornerstones of new business model and Outlook Cornerstones of business model Outlook No new banking business planned Portfolios transferred to FMS-WM are serviced by DEPFA (incl. Asset Management) Significant de-risking and downsizing in place after asset transfer with structurally improved S
Slide 15: Executive summary
Executive summary The asset transfer to FMS Wertmanagement is the key milestone to establish pbb Deutsche Pfandbriefbank as new bank with a clearly defined business model and focused strategy Significant de-risking and de-leveraging External liquidity support no longer required – properly matched fu
Slide 16: Appendix 1 – Structure of Portfolios transferred to FMS-WM
Appendix 1 – Structure of Portfolios transferred to FMS-WM Analyst/Investor Presentation, Oct 5, 2010 16
Slide 17: pbb Transfer of EUR ~42 bn from pbb to FMS-WM
pbb Transfer of EUR ~42 bn from pbb to FMS-WM Real Estate loans / by regions Non-Real Estate portfolio / by regions Nominal1 (excl. derivatives), based on simulation as of 09/2010, EUR billion Nominal1 (excl. derivatives), based on simulation as of 09/2010, EUR billion ~27 ~16 ~3 ~9 ION AL V IS ~2 ~
Slide 18: DEPFA Transfer of EUR ~131 bn from DEPFA to FMS-WM
DEPFA Transfer of EUR ~131 bn from DEPFA to FMS-WM DEPFA portfolio / by regions DEPFA portfolio / by planned contractual maturities Nominal1 (excl. derivatives), based on simulation as of 09/2010, EUR billion Nominal1 (excl. derivatives), based on simulation as of 09/2010, EUR billion ~131 ~131 ~3 ~
Slide 19: Appendix 2 – pbb portfolios before and after transfer
Appendix 2 – pbb portfolios before and after transfer Analyst/Investor Presentation, Oct 5, 2010 19
Slide 20: pbb Non-Real Estate portfolio
pbb Non-Real Estate portfolio Non-Real Estate exposure / by regions EaD, based on simulation as of 03/2010, EUR Change after transfer N AL VI SIO PRO Germany Italy Austria UK France Spain Greece Portugal USA Emerging Ireland1 Scandi- Nether- Japan Other Rest of Markets navia lands Europe the World N
Slide 21: pbb Real Estate portfolio – exposure by regions
pbb Real Estate portfolio REF exposure / by regions EaD, based on simulation as of 03/2010, EUR Change after transfer N AL VI SIO PRO Germany USA France UK Emerging Scandi- Japan Spain Nether- Italy Austria Portugal Other Rest of Markets navia lands Europe the World Analyst/Investor Presentation, Oc
Slide 22: pbb Real Estate portfolio – loan and property types
pbb Real Estate portfolio REF exposure / by loan types REF exposure / by property types EaD, based on simulation as of 03/2010, EUR EaD, based on simulation as of 03/2010, EUR Change Change after transfer after transfer ION AL ION AL V IS V IS PRO PRO Investment Development REF Others Office Residen
Slide 23: pbb REF problem & watchlist loans
pbb REF problem & watchlist loans Problem & watchlist loans / REF Coverage ratio / REF EaD, based on simulation as of 03/2010, EUR EaD, based on simulation as of 03/2010, EUR ~44% Watchlist Restructuring ~36% Workout IO N AL VIS Problem Loans N AL PRO Risk Provisioning VIS IO Coverage ratio PRO befo
Slide 24: Appendix 3 – DEPFA portfolios before and after transfer
Appendix 3 – DEPFA portfolios before and after transfer Analyst/Investor Presentation, Oct 5, 2010 24
Slide 25: DEPFA Total portfolio – exposure by regions and counterparties
DEPFA Total portfolio Total exposure / by regions EaD, based on simulation as of 03/2010, EUR Change after transfer N AL VISI O PR O USA UK Germany Ireland1 Spain France Italy Austria Portugal Greece Emerging Scandi- Nether- Japan Iceland Other Rest of Markets navia lands Europe the World Total expo
Slide 26: DEPFA Total portfolio – PD and EL classes
DEPFA Total portfolio Total exposure / by PD classes EaD, based on simulation as of 03/2010, EUR Change after transfer IO N AL VIS PRO PD 1-7 PD 8-10 PD 11-13 PD 14 and below AAA to A- BBB+ to BBB- BB+ to BB- B+ and below Total exposure / by EL classes EaD, based on simulation as of 03/2010, EUR Cha
Slide 27: DEPFA ACS Bank cover pool
DEPFA ACS Bank ACS cover pool ACS cover pool / by regions Nominal, 06/2010 24% before transfer / Total: EUR 54 bn 20% after restructuring / Total: EUR ~38 bn N AL VISI O PR O 11% 21% 10% 20% 7% 7% 7% 6% 6% 9% 10% 4% 4% 5% 2% 2% 5% 4% 1% 2% 3% 1% <1% <1% 2% 2% <1% 1% 1% <1% <1% <1% 0% 0% 0% <1% USA G
Slide 28: HPBI Public Sector (LdG) cover pool
HPBI Public Sector (LdG) cover pool HPBI Public Sector cover pool / by regions Nominal, 06/2010 27% before transfer / Total: EUR 5 bn after restructuring / Total: EUR ~3 bn 22% N AL 15% VISI O PR O 11% 10% 9% 16% 14% 11% 4% 9% 8% 3% 3% 3% 7% 2% 2% 2% 2% 2% 1% 1% 2% 2% 2% 2% 2% 2% <1% 1% 1% <1% 0% US
Slide 29: Contact details
Contact details Treasury / Funding Andreas Schenk +49 (0)6196 9990 2938 (Head of Treasury) andreas.schenk@pfandbriefbank.com Götz Michl +49 (0)6196 9990 2931 (Head of Funding) goetz.michl@pfandbriefbank.com Funding Desk funding@pfandbriefbank.com Investor Relations / Rating Agency Relations Ulrich K
Slide 30: Important Notice
Important Notice This presentation is not an offer or invitation to subscribe for or purchase any securities. No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial
Deutsche Pfandbriefbank — Investor Presentation (October 2010) on 6ix