Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Investor Day (September 2006)
76 slides from Dexia Holding SA's investor day presentation, Sep 26, 2006
Slide 1: Creating Strategic Value
Creating Strategic Value Moving Forward into the Next 10 Years Paris, September 26th 2006 Axel Miller, CEO Dexia
Slide 2: Disclaimer
Disclaimer This presentation outlines the main findings and conclusions of the strategic review conducted during the first half of 2006. It includes forward-looking statements and assumptions related to the possible evolutions of business environment in the next decade and beyond. By their very natu
Slide 3: Agenda
Agenda CREATING STRATEGIC VALUE Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 2
Slide 4: Agenda
Agenda CREATING STRATEGIC VALUE Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 3
Slide 5: Dexia 1996-2006: A Robust Growth Story
DEXIA 1996-2006 : A Robust Growth Story DEXIA 1996-2006: A ROBUST GROWTH STORY A distinctive successful business model built around 2 pillars Present in more than 30 countries Among top 20 largest banks in Euroland Net income CAGR(1) of 17.5% and Earnings Per Share CAGR(1) of 12.3% Strong capital ra
Slide 6: 10 Years After its Creation Dexia Present in More than 30 Countries
10 Years After its Creation DEXIA Present in More than 30 Countries DEXIA 1996-2006: A ROBUST GROWTH STORY Austria Romania Belgium Slovakia Bulgaria Spain Czech Sweden Republic Switzerland Denmark Turkey Finland United France Kingdom Germany Hungary Canada Ireland Mexico Israel USA Italy Luxembourg
Slide 7: Dexia Ranks Among Top 20 Largest Banks in Euroland
DEXIA Ranks Among Top 20 Largest Banks in Euroland DEXIA 1996-2006: A ROBUST GROWTH STORY Market Market capitalization capitalization (1) (1) (EUR (EURBn) Bn) BNP PARIBAS 1 76.9 SANTAND ER 2 75.5 ING 3 73.9 UNICREDIT 4 65.1 BBVA 5 60.1 SOCIETE GEN ERALE 6 54.1 CREDIT AGRICOLE 7 48.4 DEUTSCHE BAN K 8
Slide 8: A Dynamic and Robust Growth
A Dynamic and Robust Growth DEXIA 1996-2006: A ROBUST GROWTH STORY Net Net Income Income Group Group share share (EUR (EURMM)) CAG R + 17. 5% 2,038 1,772 1,822 1,426 1,299 1,431 1,001 605 761 481 528 1996 1997 1998 1999 2000 2001 2002 2003 2004 2004 2005 Dexia GAAP EU GAAP (1) Earnings Earnings Per
Slide 9: A Distinctive Business Model
A Distinctive Business Model DEXIA 1996-2006: A ROBUST GROWTH STORY CIR CIR underlying underlying Profit Profit margin margin(2)(2) 81.7% 71.9% 70.1% DnB N or PFS Allied Irish Banks 59.0% Bank of Ireland 55.8% 53.0% Dexia Group Danske Dexia Dexia 35.0% PPFCE Nordea 36.9% Intesa 33.4% 31.8% Santander
Slide 10: Attractive Margins
Attractive Margins DEXIA 1996-2006: A ROBUST GROWTH STORY Return Return on on risk-weighted risk-weighted assets assets (RORWA) (RORWA)(1)(1) 1.9% 1.8% 1.5% 1.4% 1.3% 1.7% 1.4% 1.2% 1.1% 0.9% Dexia Peer group (2) 2001 2002 2003 2004 2005 (1) The ratio between the net income in cluding minority inter
Slide 11: Strong Capital Ratios Contribute to Superior Credit Rating
Strong Capital Ratios Contribute, Among Several Other Factors, to Superior Credit Rating DEXIA 1996-2006: A ROBUST GROWTH STORY Tier Tier 11 ratio ratio 10.7% 10.3% 9.9% 10.0% 9.9% 9.3% 31/12/02 31/12/03 31/12/04 01/01/05 31/12/05 30/06/06 Dexia GAAP EU GAAP (1) (1) IFRS as adopted by the EU Credit
Slide 12: Strong Returns on Capital
Strong Returns on Capital DEXIA 1996-2006: A ROBUST GROWTH STORY Return Return on on Core Core Equity Equity (1)(1) 19.8% 20.0% 17.7% 18.7% 16.2% 16.5% 17.2% 15.7% 12.9% 13.2% 14.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2004 2005 Dexia GAAP EU GAAP (2) (1) Excluding AFS, CFH reserves and CTA
Slide 13: Asset Portfolio: High Quality and Wide International Footprint
Asset Portfolio: High Quality and Wide International Footprint DEXIA 1996-2006: A ROBUST GROWTH STORY Consolidated Consolidated exposure: exposure: EUR EUR 771 771 Bn Bn By geographical region By category of counterparts Others: 0.7% Central and South America 0.1% Financial institutions Other 2.7% 1
Slide 14: Dexia Ranks Among Largest Private Issuers of Long-term Debt Worldwide
DEXIA Ranks Among 5 Largest Private Issuers of Long-term Debt Worldwide DEXIA 1996-2006: A ROBUST GROWTH STORY Long-term Long-termdebt debt issues issues (EUR (EURBn) Bn) 29.7 x 3. 3 17.0 9.3 12.7 1996 2005 AA AAA 13
Slide 15: Total Shareholder Return
Total Shareholder Return DEXIA 1996-2006: A ROBUST GROWTH STORY Value in EUR at Sept 14th 2006 of 1,000 EUR invested (1) On On On September September 16, 16, 1999 1999 On December December 31, 31, 1991 1991 On On November November 20, 20, 1996 1996 (day (CLF’s (daybefore before merger merger Dexia D
Slide 16: Pillars: Public / Project Finance and Universal Banking Activities
2 Pillars: Public / Project Finance and Universal Banking Activities DEXIA 1996-2006: A ROBUST GROWTH STORY Business Business portfolio portfolio Segment Segment contribution contribution to to net net income income Group Group share share (1) (1) Treasury and Financial Markets Asset Management 14%
Slide 17: Scale Matters, Not Size
Scale Matters, Not Size DEXIA 1996-2006: A ROBUST GROWTH STORY At June 30, 2006 Geographic Scope Public / Project LT banking commitments o/s EUR 245 Bn Global Finance and Credit Enhancement Net par o/s FSA USD 362 Bn Global Customer assets o/s EUR 128 Bn Belux + Turkey Personal Financial Customer lo
Slide 18: Agenda
Agenda CREATING STRATEGIC VALUE Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 17
Slide 19: Streamlining Business Portfolio
Streamlining Business Portfolio DEXIA 2003-2006: FOCUS AND DEVELOPMENTS 2003 2003 2004 2004 2005 2005 2006 2006 Alex Société Dexia Partenaire UK private banking M onégasque France activities (Ely) Landbouwkrediet/ Banque Divestments Crédit Agricole Eural Belstar (1) Privée Belgium Kempen Rekord Créa
Slide 20: Optimizing Management Structure and Organization
Optimizing Management Structure and Organization DEXIA 2003-2006: FOCUS AND DEVELOPMENTS New management team from January 1st 2006 Dynamic management of top tier executives Implementation of a performance-driven culture 19
Slide 21: Developing the Group's Commercial Franchises
Developing the Group’s Commercial Franchises DEXIA 2003-2006: FOCUS AND DEVELOPMENTS Managing post-Artesia integration Commercial development of the Public/Project Finance franchise Joint-Venture with RBC in Investor Services Investment in Turkey (DenizBank) 20
Slide 22: Agenda
Agenda DEXIA 2003-2006: FOCUS AND DEVELOPMENTS Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 21
Slide 23: Strategic Focus: Building on Pillars
Strategic Focus: Building on 2 Pillars STRATEGIC FOCUS Focused development of Dexia’s main franchises Keep extracting all possible synergies between business lines Improve operating efficiency Integrate DenizBank and develop position in Turkey Manage capital efficiently Embed Embed aa performance-dr
Slide 24: Dexia Has Strongly Developed its Franchise Outside its Historic Markets
DEXIA has Strongly Developed its Franchise Outside its Historic Markets and is the Only Global Player to Offer Full Range of Products/Services to the Local Public Sector PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Long-term Dexia: Dexia: aa “One-Stop-Shop” “One-Stop-Shop” Long-termbanking banking
Slide 25: Stable Margins on Growing Volumes and Strong Returns on Economic Capital
Stable Margins on Growing Volumes and Strong Returns on Economic Capital PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Stable Stable return return on on growing growing volumes volumes Evolution Evolution of of the the ROEE ROEE (%) (%) Commitments (1) EUR Bn Gross return on commitments (2) bp 275 1
Slide 26: FSA, a Leading Player in the Monoline Industry
FSA, a Leading Player in the Monoline Industry, Especially in the Field of US Municipal Bonds Market PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Net Net par par outstanding outstanding (USD (USDBn) Bn) International CAGR 2001 - 2005 U.S. Asset-Backed obligations (1) U.S. Muni obligations + 12.8 %
Slide 27: A Vast and Predictable Market Undergoing a Paradigm Shift
A Vast and Predictable Market Undergoing a Paradigm Shift PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Market Market with with good good long long term term visibility visibility Local debt market 2005 - 2015 - 2025 (USD Bn) Increasing population and GDP Ageing population/ New demand Decentralizati
Slide 28: Capitalize on the Unique Know-how in Public & Project Finance
Capitalize on the Unique Know-how in Public & Project Finance to Drive Development PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Accelerate international expansion Lead the race of innovation with a client centric approach Leverage on Capital Markets skills and opportunities Broaden client base in t
Slide 29: Broaden Geographic Outreach with a Clear Strategic Focus and Timing
Broaden Geographic Outreach with a Clear Strategic Focus and Timing PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Historic markets Belgium, France Growth markets Rest of EU, US 2% 42% Tomorrow’s growth markets CEE, Japan, Canada, Mexico, Turkey 43% 13% Future markets China, India x% Part of world ma
Slide 30: Building on a Unique Positioning in the Market
Building on a Unique Positioning in the Market to Foster New Developments PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT Dexia provides Public Sector Clients with financing solutions through which they can benefit from market opportunities Financial Financial Markets Markets Public Public Sector Sect
Slide 31: Objectives
Objectives PUBLIC/PROJECT FINANCE AND CREDIT ENHANCEMENT 2009 Financial targets Underlying net income CAGR 05-09 around 10% Maintain Return On Economic Equity in excess of 20% Increase revenues at a faster rate than costs 5-year Ambition Effective presence in all developed economies / Global leaders
Slide 32: Leading Player in BeLux and Fast Growing Position in Turkey
Leading Player in BeLux and Fast Growing Position in Turkey PERSONAL FINANCIAL SERVICES Net Net income income -- 2005 2005 pro pro forma forma (1) (1) Geographical Geographical presence presence -- Europe Europe overview overview Others Turkey 7% 11% Lux. 20% 62% Belgium Belgium Luxembourg (1) Under
Slide 33: A Successful Track Record in Responding to Challenges
A Successful Track Record in Responding to Challenges PERSONAL FINANCIAL SERVICES ’90 s: Spectacular product diversification and increase of fee business 1996 2005 Off-balance Sheet Savings bonds Off-balance Sheet Savings bonds 18% Balance Sheet 54% 46% 82% Balance Sheet EUR 46 Bn EUR 80.5 Bn ’90 s:
Slide 34: A Strong Franchise in Asset Gathering, Private Banking and Lending
A Strong Franchise in Asset Gathering, Strong Momentum in Private Banking and Lending PERSONAL FINANCIAL SERVICES Volumes Volumes outstanding outstanding (EUR (EUR Bn) Bn) Market Market shares shares in in Belgium Belgium atatJune June2006 (1) 2006 (1) outstandings outstandings of which Savings bond
Slide 35: Strong Continuous Improvement of Operations
Strong Continuous Improvement of Operations PERSONAL FINANCIAL SERVICES Income(1) (EUR M ) Costs(1) (EUR M ) 2,219 CAGR 02-04 2,150 CAGR 02-04 1,596 + 6.0% + 0.7% 1,568 1,915 1,377 1,371 1,396 1,764 1,703 02 04 04 05 02 04 04 05 Dexia GAAP EU GAAP (2) Dexia GAAP EU GAAP (2) GOI, Net income(1) (EUR M
Slide 36: Quick and Efficient Integration of Artesia
Quick and Efficient Integration of Artesia PERSONAL FINANCIAL SERVICES Synergies Synergies were were released released beyond beyond initial initial targets targets FTE: - 23% Cost synergy achievements # of branches: - 30% ⇒ 1/3 linked to staff costs 9,010 ⇒ 2/3 linked to other 222 8,481 operating e
Slide 37: A Balanced Private Banking Franchise in Europe
A Balanced Private Banking Franchise in Europe with a Proven Track Record PERSONAL FINANCIAL SERVICES Domestic Private Banking International Domestic International Customer Assets and Liabilities (CAL(1)) 0.6 Other 3.2 Switzerland EUR 42.5 Bn Belgium 21.8 16.9 Luxembourg June 2006 51% 49% Customers
Slide 38: Optimize and Strengthen the Personal Financial Services Franchises in Belgium
Optimize and Strengthen the Personal Financial Services Franchises in Belgium PERSONAL FINANCIAL SERVICES Increase the satisfaction and loyalty of our customers and focus on service differentiation Accelerate commercial development by implementing a new modern and highly efficient multi channel dist
Slide 39: Strengthen and Develop Personal Financial Services
Strengthen and Develop Personal Financial Services PERSONAL FINANCIAL SERVICES Dexia Private Banking Focus on selected high potential opportunities in Private Banking (e.g. euro-migrants) Greenfield operations in selected promising international private banking markets Seeking new Private Banking pa
Slide 40: DenizBank a Fast Growing Player in a Promising Market
DenizBank a Fast Growing Player in a Promising Market PERSONAL FINANCIAL SERVICES Strong Strong increase increase in in banking banking penetration, penetration, combined combined to to high high GDP GDP growth, growth, is is expected expected 102.1 Turkey in 2015: 53% Turkey in 2015: 61% Turkey in
Slide 41: 3-Year Financial Objectives
3-Year Financial Objectives PERSONAL FINANCIAL SERVICES Net income CAGR 05-09 above 10% Cost-income ratio below 62% in 2009 (vs. 68% in 2005)(1) (1) pro forma includin g DenizBankand excluding Dexia Banque Privée France 40
Slide 42: A History of Growth and Performance
A History of Growth and Performance DEXIA ASSET MANAGEMENT Assets Assets under under Management Management (EUR (EURBn) Bn) Gross Gross operating operating income income (EUR (EURMM)) + 11% 97 G R CA % 26 R +2 2 87 CA G 61 22 11 10 5 48 5 45 36 Dec. 2001 June 2006 2002 2005 Retail Funds Private Mand
Slide 43: Pursue Strong Growth in Asset Management
Pursue Strong Growth in Asset Management DEXIA ASSET MANAGEMENT Expand geographic client coverage In Europe In selected high growth areas, e.g. Middle East 2009 2009 Objectives Objectives and South East Asia Focus on new institutional client segments (e.g. Central banks; international organizations)
Slide 44: A Profitable Repartition of Assets
A Profitable Repartition of Assets INVESTOR SERVICES Assets Assetsunder underadministration administration (4)(4) Net NetIncome Income USD USDBn Bn EUR EURMM Client Assets Under Custody Top Global Custodians At December 31, 2005 USD Bn (5 ) 1 JP Morgan 11,249 . 3% +63% + 26 2,080 2 Bank of New York
Slide 45: Pursue Strong Momentum
Pursue Strong Momentum INVESTOR SERVICES Capture synergies and support the position of RBC-Dexia Investor Services among the leading global custodians, fund administrators and transfer agents 2009 2009 Objectives Objectives Accelerate growth in existing markets and assess new markets Net income CAGR
Slide 46: Treasury and Financial Markets at Dexia: Scale and Capability
Treasury and Financial Markets at DEXIA: Scale and Capability TREASURY AND FINANCIAL MARKETS Missions Provide high quality "financial market products" to customers of commercial business lines Manage Dexia Group / entities balance sheets Develop own business (focus on Capital Markets intermediation)
Slide 47: A Key Element of Dexia's Development in its Pillars
A Key Element of DEXIA’s Development in its 2 Pillars TREASURY AND FINANCIAL MARKETS Strengthen Dexia’s capabilities in Capital Markets intermediation with a focus on Public / Project Finance 2009 2009 Objectives Objectives clients Develop sales forces in line with origination capabilities Net incom
Slide 48: Strategic Focus: Building on Pillars
Strategic Focus: Building on 2 Pillars STRATEGIC FOCUS Focused development of Dexia’s main franchises Keep extracting all possible synergies between business lines Improve operating efficiency Integrate DenizBank and develop position in Turkey Manage capital efficiently Embed Embed aa performance-dr
Slide 49: Agenda
Agenda CREATING STRATEGIC VALUE Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 48
Slide 50: 3-Year Plan 2006-2009: Methodology
3-Year Plan 2006-2009: Methodology MID-TERM TARGETS AND LONG-TERM OUTLOOK Insurance Services are included in Personal Financial Services and Public/Project Finance, according to respective contributions DenizBank included at 100% (1) Key assumptions available in appendix (1) Includin g EUR 30 M per
Slide 51: 3-Year Plan 2006-2009: Group Financial Targets
3-Year Plan 2006-2009: Group Financial Targets MID-TERM TARGETS AND LONG-TERM OUTLOOK Underlying cost-income ratio to decrease from 56.5% in 2005 (including DenizBank) to less than 52% in 2009 Underlying Net income CAGR 05-09 ~ 10% Underlying EPS CAGR 05-09 ~ 10% Target Underlying EPS in 2009 of EUR
Slide 52: 3-Year Plan 2006-2009 Business Portfolio: Underlying Net Income
3-Year Plan 2006-2009 Business Portfolio: Underlying Net Income(1) MID-TERM TARGETS AND LONG-TERM OUTLOOK 11% 5% 5% TFM 14% IS 3% 31% 4% AM 28% PFS PPFCE 48% 51% 2005 pro forma 2009 (1) Excludin g non operatin g items and Excluding Central Assets (negative contribution growing at CAGR 05-09 around 1
Slide 53: 3-Year Plan 2006-2009: Sensitivity to Currency Evolution
3-Year Plan 2006-2009: Sensitivity to Currency Evolution MID-TERM TARGETS AND LONG-TERM OUTLOOK Business portfolio includes significant portions in non-EUR / non-USD currencies (CAD, JPY, TRY) Sensitivity Sensitivity of of EPS EPS to to currency currency fluctuations fluctuations in in 2009 2009 Imp
Slide 54: 3-Year Plan 2006-2009: Expected Contribution from Turkey in 2009
3-Year Plan 2006-2009: Expected Contribution from Turkey in 2009 MID-TERM TARGETS AND LONG-TERM OUTLOOK Contribution from Turkey will represent in 2009 Public Public Project Project Finance Finance // Credit Personal Personal Financial Financial Services Services Credit Enhancement Enhancement Total
Slide 55: Capital Strength and Credit Rating are Essential to Support Future Growth
Capital Strength and Credit Rating are Essential to Support the Future Growth of the Group MID-TERM TARGETS AND LONG-TERM OUTLOOK LT LT debt debt issue issue 30 AA AA rating rating 9 isis key key 1996 2005 2009 Under current Basel I regulation, capital ratios stand high Total Tier 1 ratio: 9.9%(1) a
Slide 56: Basel II Will Help Dexia Release Regulatory Capital
Basel II Will Help DEXIA Release Regulatory Capital, When Fully Implemented MID-TERM TARGETS AND LONG-TERM OUTLOOK EUR Bn The The amount amount of of economic economic capital capital may may change change from fromtime time to to time time at 30/06/06 with with continuing continuing refinements ref
Slide 57: Capital Management
Capital Management MID-TERM TARGETS AND LONG-TERM OUTLOOK Gross Gross dividend dividend per per share share (in (inEUR) EUR) 1.6% CAG R +1 +14.5% 0.71 Dexia France 0.53 0.62 0.48 0.48 Dexia Belgium 0.39 0.43 0.32 0.31 0.36 Dexia 0.27 1997 1998 1999 2000 2001 2002 2003 2004 2005 Dividend policy As ev
Slide 58: Financial Approach to Evaluating Acquisitions
Financial Approach to Evaluating Acquisitions MID-TERM TARGETS AND LONG-TERM OUTLOOK As Dexia’s credit rating is key, the potential impact of acquisitions on the rating is carefully analyzed and discussed with the Rating agencies Cost of Equity of the project is worked out Different from blended cos
Slide 59: Ambitions Over the Five-Year Horizon
Ambitions Over the Five-Year Horizon MID-TERM TARGETS AND LONG-TERM OUTLOOK Be more international Public/Project Finance outside France and Belgium to represent 2/3 of total business line’s earnings Significant expansion of Universal Banking outside BeLux Asset Management: a European player with a s
Slide 60: 10-Year Outlook
10-Year Outlook MID-TERM TARGETS AND LONG-TERM OUTLOOK The strategic review has reinforced Dexia’s capability, on a stand-alone basis(1), to achieve around 10% organic growth per annum over the next decade through: its established franchise in Public/Project Finance and Credit Enhancement where vast
Slide 61: Agenda
Agenda CREATING STRATEGIC VALUE Dexia 1996-2006: A Robust Growth Story Dexia 2003-2006: Focus and Developments Strategic Focus Mid-term Targets & Long-term Outlook Looking Beyond 60
Slide 62: Looking Beyond: Building the Future on Two Pillars
Looking Beyond: Building the Future on Two Pillars LOOKING BEYOND Dexia Dexia will will seek seek to to continue continue building building its its long long term term future future on on two two pillars pillars Public / Project Finance Universal banking & Credit Enhancement on a European scale on a
Slide 63: Why Build on Two Pillars?
Why Build on Two Pillars? LOOKING BEYOND Strong prospects and successful track record of Dexia in its two pillars Retail franchise enlarges commercial opportunities with public sector clients Strong structural synergies Supports high credit ratings Diversification releases capital under Basel II Big
Slide 64: Way Forward
Way Forward LOOKING BEYOND External development projects/opportunities will thus continue to be sought in Europe and considered, as long as they: Respect strict financial discipline Make the best use of Dexia’s capital resources Improve financial performance compared to a stand-alone development Cre
Slide 65: Moving Forward into the Next 10 Years
Moving Forward into the Next 10 Years LOOKING BEYOND Dexia’s commitment is to create strategic value Further enlarge and anchor Global leadership in Public/Project Finance Broaden Universal Banking franchise in Europe AA European European banking banking Group, Group, worldwide worldwide leader lead
Slide 66: Appendices
APPENDICES
Slide 67: 3-Year Stand-alone Plan 2006-2009: Key Assumptions
3-Year Stand-alone Plan 2006-2009: Key Assumptions Average 2005 2006 2009 Inflation France 1.7% 1.7% 1.7% Belgium 2.8% 1.9% 2.1% USA 3.4% 3.1% 2.5% Turkey 8.2% 10.5% 4.0% 10 years 4.7% 5.6% 6.2% Interest rates (USD) 3 months 3.5% 5.2% 5.2% 10 years 3.5% 4.1% 5.2% Interest rates (EUR) 3 months 2.2% 3
Slide 68: 3-Year Stand-alone Plan 2006-2009: Currency Composition of Net Income
3-Year Stand-alone Plan 2006-2009: Currency Composition of Net Income EUR Turkish Lira USD Other 1% 2% 6% 8% 27% 2005 23% pro forma 2009 66% 67% 67
Slide 69: Appendix Annex DenizBank
Appendix VA Annex DenizBank 68
Slide 70: Disclaimer: Annex DenizBank
Disclaimer ANNEX DENIZBANK DenizBank information based upon Dexia’s assessment of publicly available information These best estimates were drawn up during bidding phase Figures will be reassessed after closing Update will be presented at an investor conference envisaged in Q1 2007 69
Slide 71: Update Acquisition Process – Time Line
Update Acquisition Process – Time Line ANNEX DENIZBANK September May-June July-August October-December December-February October May 30, 2006: Signing Receiving all regulatory Executing tender offer of SPA approvals for closing Capital raising Dexia Continued fine tuning of integration plan (expats,
Slide 72: View on Synergies
View on Synergies ANNEX DENIZBANK Estimated impact (at signing) on Net Income of USD 66 M in 2010 After closing an in-depth re-assessment of synergies will be performed Main synergy pockets Cost of funding Project finance and corporate banking Public finance (although in the longer term) Procurement
Slide 73: Integration of DenizBank
Integration of DenizBank ANNEX DENIZBANK A member of Dexia’s Management Board (Dirk Bruneel) in charge of the integration process. A large number of integration initiatives are ready for implementation from closing onwards 10 Dexia employees identified and ready to join DenizBank from closing onward
Slide 74: DenizBank's Performance and Market Update
DenizBank’s Performance and Market Update ANNEX DENIZBANK Exchange Exchange rates rates evolution evolution since since 11Jan. Jan.2006 2006 Recent turmoil has not affected Jan-06 1.30 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Exchange rate (reversed rang e) 1.34 operating performance
Slide 75: DenizBank Risk Profile
DenizBank Risk Profile ANNEX DENIZBANK DenizBank has very sound and prudent risk management Very limited P&L sensitivity to a 1% parallel shift of TRY yield curve: TRY 0.4 M pre-tax 1-day holding period Value at Risk is only 4% of shareholder’s equity Limited open foreign exchange position in the ba
Slide 76: Creating Strategic Value
Creating Strategic Value Moving Forward into the Next 10 Years Paris, September 26th 2006