Slide 1: CREDEM Group '03 results
CREDEM CREDEM Group '03 results Milan, March 31st, 2004 Investor Relations - CREDEM 2003 1
Slide 2: Track Record, '03 Results, Outlook for '04, Appendices
CREDEM Track Record '03 Results Outlook for '04 Appendices Investor Relations - CREDEM 2003 2
Slide 3: CREDEM Group today
CREDEM CREDEM Group today 14th largest banking group in Italy 11th largest in asset management Total Business 700,000 customers and 65 billion in total business Customer Loans 18% 500 branches and corporate AUC 37% centres, 5,000 employees Direct depos 22% AUM 20 companies covering all 23% financial
Slide 4: Development 2000-2003
CREDEM Development 2000-2003 New Business track record '00 / '03 Mkt Share Total Deposits & Collections 1.6 2.7 1.5 4.0 1.3 +39% 1.2 13.3 bn € 1.2 4.2 2.4 1999 2000 2001 2002 2003 '00 '01 '02 '03 approx. Total customer business 19 bn € has increased by more than 50% Net loans increase track record '
Slide 5: Credem Stock
CREDEM Credem Stock 1997 1998 1999 2000 2001 2002 2003 No. shares (/000) 225,839 253,408 265,464 270,679 272,537 273,309 274,350 Net equity/share 2.07 2.34 2.27 2.55 2.86 3.08 3.23 EPS 0.22 0.26 0.17 0.51 0.39 0.40 0.35 ROE 11.6% 13.5% 8.5% 21.3% 14.6% 13.5% 11.1% Dividend/share 0.08 0.10 0.12 0.18
Slide 6: Track Record, '03 Results, Outlook for '04, Appendices
CREDEM Track Record '03 Results Outlook for '04 Appendices Investor Relations - CREDEM 2003 6
Slide 7: Key figures: stable income and lower cost-to-income ratio
Stable income and lower CREDEM Key figures cost-to-income ratio Total Income Operating Costs 818.9 +2.3% 516.0 521.7 +1.1% 800.1 1,000 600 212.8 208.2 +3.1% -2.2% 496.0 511.2 mln € mln € 500 300 +1.2% 303.2 313.5 +3.4% 304.1 307.7 0 0 2002 2003 2002 2003 Net Interest Income Non Interest Income Staff
Slide 8: Key figures: strong rate of growth
CREDEM Key figures Strong rate of growth 65 bln (+13.5%) total business Distribution channels Deposits & Collections +17.7% 53.0 46.3 -5 +17.3% 54 60 59 +1 23.8 38 +20.8% 37 21.5 40 Mkt bn € +12 14.8 +15.2% +4.5% 462 12.3 450 20 12.5 14.5 0 2002 2003 2002 2003 Branches Corporate Centres Points & Sho
Slide 9: Key indicators: growth, profitability, efficiency and credit quality
Growth, profitability, CREDEM Key indicators and credit quality 2002 2003 MS deposits 1.50% 1.60% growth MS loans 0.95% 1.00% ROE 13.5% 11.1% profitability Net Interest income / Total income Non-interest income / Total income 38.0% 62.0% 37.6% 62.4% Operating costs / Total income 64.5% 63.7% efficie
Slide 10: Income from banking activities
Revenue on the rise (+2.3%) CREDEM Income from banking activities Management fees encouraging (mln €) 2002 2003 % yoy Net interest income 304.1 307.7 1.2% Net interest income improved by 1.2% due to the combined effect of the 48bp reduction in Spread 3.27% 2.79% -48bp spreads and significant volume
Slide 11: Operating profit growth to net profit
Operating profit growth CREDEM Total income to net profit Costs under control (mln €) 2002 2003 % yoy Total income 800.1 818.9 2.3% Payroll costs -303.2 -313.5 3.4% Administrative expenses -212.8 -208.2 -2.2% Operating costs -516.0 -521.7 1.1% Gross operating profit +4.6% Gross operating profit 284.
Slide 12: Extraordinary items and normalised income
Positive trend in CREDEM Extraordinary items "normalised" income (mln €) 2002 2003 % yoy Total income 800.1 818.9 2.3% Payroll costs -303.2 -313.5 3.4% Administrative expenses -212.8 -208.2 -2.2% Operating costs -516.0 -521.7 1.1% Gross operating profit 284.1 297.2 4.6% Depreciation & Amortisation -
Slide 13: Profit generation: confirmed solidity of the core business
Confirmed solidity of CREDEM Profit Generation the core business Breakdown gross operating profit (GOP) contribution (mln €) 2002 2003 % at 12/03 Total Income 800.1 818.9 . Captive 669.3 718.4 87.7% . Non captive 130.8 100.5 12.3% Operating costs -516.0 -521.7 The diversification of Group business h
Slide 14: Distribution and resources
CREDEM Distribution and Resources Distribution structure 2002 2003 CREDEM Group branches and market share Credembanca and others 429 440 B.ca Euromobiliare 21 22 Branches 450 462 1 64 0.1 % Corporate Centres 37 38 1.1 % 25 12 0.7 % 0.5% 127 CredemPoints 24 27 4 4.0 % 0.5 % Fin. Banca Euro shops 35 2
Slide 15: Deposits and collections
Strong growth CREDEM Deposits & Collections and New Inflows in AUM (mln €) Breakdown of deposits 2002 2003 % yoy Deposits 6,135 6,991 14.0% Favourable performance in net inflows (2.7 billion Bonds 3,676 4,601 25.2% compared to an expected 2.5 billion). Efficiency of all Total direct w/o Repos 9,811
Slide 16: Lending: strong growth in all activities
Strong growth in CREDEM Lending all activities Cash Loans by type (net of Repo) The significant growth in lending of 11.6% (+20% based on average principal) was 11.1 +11.6% equally divided over all business segments. 9.9 +6.6% 12.0 0.8 Of particular importance were the 0.8 +19.5% 10.0 3.2 contributi
Slide 17: Lending in the two strategic market segments
CREDEM Lending …and in the two strategic market segments Credembanca - Gross customer loans (mln €) The rate of loan growth has been Breakdown by Business Unit 2002 2003 % yoy balanced: short-term 3,510 3,678 4.8% medium-term 392 435 11.0% non-performing 4 59 •between Corporate (which also Total Cor
Slide 18: Credit quality supports lending growth
Credit quality supports CREDEM Lending growth Top 20 borrowers 2002 2003 Growth hasn’t affected asset quality (corporate € mln) Lending performance (%) 01 02 03 Total use 1,320 1,399 Market share 0.8 0.9 1.0 Incidence of direct loans 12% 11.9% Lending growth rate 17.1 24.1 20.0 Average internal rati
Slide 19: Other risks under control
Market risk CREDEM Other Risks under control Market risks (mln €) 2002 2003 VaR banking and trading book (99% . 10 days) Credembanca . average 1.2 2.8 Market risk is primarily focused on . maximum 3.0 4.8 Credembanca and Abaxbank. Abaxbank . average 2.6 2.3 Overall, risk is limited and without . max
Slide 20: Ongoing projects
CREDEM Ongoing Projects •The number of cards in circulation has exceeded 115,000 (80,000 at the end of 2002) with a usage rate of around 78%. Also significant is the balance of revolving credit which has reached €19 million. The card personalisation program has offered the possibility of 30 differen
Slide 21: Track Record, '03 Results, Outlook for '04, Appendices
CREDEM Track Record '03 Results Outlook for '04 Appendices Investor Relations - CREDEM 2003 21
Slide 22: The development of distribution 2004
CREDEM The development of distribution 2004 Distribution structure 2003 2004 E Credembanca and others 440 445 B.ca Euromobiliare 22 22 Branches 462 467 Corporate centres 38 39 •“Flexible” distribution policy based on the financial performance of the Group. CredemPoints 27 30 New branches (+12) opene
Slide 23: Key aggregates 2004
CREDEM Key aggregates 2004 Net inflows (mln €) 2003 2004 E Credembanca 2,277 1,500 •Net inflows directed towards higher value Banca Euromobiliare 456 300 added managed products (more than 50%). Total 2,733 1,800 Customer loans (a.p.) •Growth in lending of roughly €1 bn based on 12.0 average principa
Slide 24: Track Record, '03 Results, Outlook for '04, Appendices
CREDEM Track Record '03 Results Outlook for '04 Appendices Investor Relations - CREDEM 2003 24
Slide 25: Appendices
CREDEM Appendices Information about the Group: •Capital structure •Group structure •Business areas •Focus on key companies Investor Relations - CREDEM 2003 25
Slide 26: Capital structure
CREDEM Capital structure Pact of 226 > 2,900 shareholders shareholders Main shareholders % held Maramotti family 35.5% Pictet Cie 4.9% Eredi Savioli 2.9% Fincorrad 2.1% Allianz Subalpina 1.7% 72.4% 27.6% CREDEMHOLDING 73.7% 26.3% CREDEM Investor Relations - CREDEM 2003 26
Slide 27: Group structure
CREDEM Group structure CREDEMHOLDING 73,7% CREDEM 100% Banca Euromobiliare 100% Credemleasing Euromobiliare 100% Credemtel 100% Fiduciaria 98,5% Euromobiliare A.M. 100% Credemfactor Banca del Garda 51,2% Credimmobili 100% S.G.R. 100% Euromobiliare 50% Azuritalia Ass.ni Credem International 100% Maga
Slide 28: Business areas
CREDEM Business Areas Commercial Banking Wealth Management Investment Banking Other businesses CREDEM Life (*) FIDUCIARIA Spa Assicurazioni(*) (*) CORPORATE FINANCE (*) (*) companies not included within the Banking Group Investor Relations - CREDEM 2003 28
Slide 29: Asset management: market share on the rise
CREDEM Market share on the rise Market Share P&L summary (thousands of €) 2002 2003 % yoy 2.10 1.90 1.81 Net management fees 15,222 15,671 3.0% Net performance fees 688 3,931 471.2% 1.52 Other commissions 1,422 1,886 32.7% 1.28 1.09 Total net fees & commissions 17,332 21,488 24.0% 0.83 Gross operati
Slide 30: Leasing: Credemleasing
CREDEM Stock 1,381 +16% 1,190 With roughly 12,000 contracts in place and a stock of €1.4 billion in loans (MS 2.1% approx.), 1,400 Credemleasing is the 19 largest Italian firm in the th 1,200 +23% industry. 1,000 1,032 839 800 mln € 600 Its rate of growth is higher than the market average 400 350 34
Slide 31: P&L summary
CREDEM P&L summary (thousands of €) 2002 2003 % yoy Net interest income 4,208 3,698 -12.1% •Customer assets at the end of Non-interest income 32,149 34,619 7.7% 2003 amounted to €5.6 bn (+14%) of which 66% in AUM. Total income 36,357 38,317 5.4% •372 Financial advisors (-36). Operating costs -32,039
Slide 32: Market leader: stock brokerage
CREDEM Market leader A stock broker focused on the Italian equity market with three business lines : z Stock brokerage z Brokerage activities z Financial analysis intensified in European and Equity capital markets North American markets in z order to further broaden the services offered z Equity res
Slide 33: ... and leader in research
CREDEM … and leader in research ThomsonExtel ExtelSuvey Suvey InstitutionalInvestor Investor Thomson Institutional Ranking Category Ranking Category Ranking Category Ranking Category 2003 2° Country analysis 2004 3° Italian Research Team 2003 2° Country analysis 2004 3° Italian Research Team 4° Smal
Slide 34: Investment bank focused on the Italian market
CREDEM Investment bank focused exclusively on the Italian market with two areas of business: Investment Banking Division (equity e debt origination, z M&A/Advisory, securitisation, loan syndacation) zFinancial Market Division (equity sales & trading, risk Total income came in at € 52.7 million arbit