Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — H1 2007 Earnings Presentation
26 slides from Credito Emiliano's earnings presentation, September 2007
Slide 1: CREDEM 1H07 Results
CREDEM 1H07 Results 1 Investor Relations september 2007
Slide 2: CREDEM at a Glance
• CREDEM at a Glance • Key Data • 1H07 Results • Long Term Strategy 2 Investor Relations september 2007
Slide 3: Shareholding Structure
Shareholding Structure Pact among 230 shareholders More than 2,900 Maramotti family 35.5% other shareholders Pictet Cie 4.9% Eredi Savioli 2.9% Fincorrad 2.2% Allianz Subalpina 1.7% 72.9% 27.1% CREDEMHOLDING Free Float 71.8% 28.2% CREDEM • Listed on Milano Stock Exchange since 1997 • Market cap arou
Slide 4: Business Areas
Business Areas Distribution Wealth Management Investment Banking Other CREDEM 100% 98.5% 50% * 100% 100% Life Insurance 100% 100% 50% * 69.7% 100% FIDUCIARIA Spa General Insurance *** 100% * na 100% * 100% 100% 100% 100% Total Customers Business** about 70 billion AUM 25% 100% AUC 37 % Deposits mers
Slide 5: Network and Human Resources
Network and Human Resources 524 branches and corporate centres, 5,252 employees. 1,158 financial advisors, 230 private bankers 12/31/06 6/30/07 4 Credem Branches 447 461 70 0.4 % B.ca Euromobiliare Branches 21 22 19 17 1.1 % Total Branches 468 483 0.6 % 0.6% 129 9 Corporate Centres 41 41 3.8 % 0.9 %
Slide 6: Focus on Emilia-Romagna
Focus on Emilia-Romagna Main Industrial Districts • Region of Emilia-Romagna rating: Aa2 stable /A+ stable, Moody’s/S&P • About 4.1 million people (7% of the Italian REGGIO EMILIA population) MIRANDOLA agricoltular biomedical BOLOGNA machinery, motorbikes, • A wealthy and well diversified economy, w
Slide 7: Key Data
• CREDEM at a Glance • Key Data • 1H07 Results • Long Term Strategy 7 Investor Relations september 2007
Slide 8: Trends
Trends Key Indicators Revenues growth 1,061 1,100 945 1,000 816 69 FY04 FY05 FY06 1H07 54 131 900 571,7 101 800 43 79 EBIT (EURm) 245.6 333.3 416.2 234.3 700 421 EURm 600 415 28 Revenues per Employee (EUR,000) 164.0 190.0 211.4 108.7 376 81 500 Oper. Costs per Employee (EUR,000) 108.6 123.9 123.3 61
Slide 9: Value Creation
Value Creation ROE EPS EUR .1% Avg 15 0.90 0.82 23.2% 21.3% 19.3% 14.6% 0.51 0.51 11.6% 13.5% 8.5% 13.5% 11.1% 14.8% 0.39 0.40 0.35 0.22 0.26 0.17 cagr 15.7% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dividend and Payout Ratio Capital Adequacy
Slide 10: 1H07 Results
• CREDEM at a Glance • Key Data • 1H07 Results • Long Term Strategy 10 Investor Relations september 2007
Slide 11: Tableau de Bord
Tableau de Bord Total Income 800 Cont’d Operating Costs 571.7 +7.8% 700 400 350 323.4 +8.5% 600 530.5 298.0 300 500 322.4 123.5 EURm +0.1% 250 113.3 +9.0% EURm 400 200 322.2 300 150 200 349.3 100 184.7 199.9 +8.2% 100 208.3 +19.7% 50 0 0 1H06 1H07 1H06 1H07 Payroll costs Admin. expenses Net interest
Slide 12: Income Statement
Income Statement EURm 1H06 FY06 1H07 % yoy Income statement shows a good performance because of the sharp improvement of the Net Interest Income progressing as Total Income 530.5 1,060.9 571.1 +7.7 a result of the expansion of lending volumes as well as Operating Costs -298.0 -618.8 -323.4 +8.5 spre
Slide 13: Total Income
Total Income Total Income Quarterly Trend EURm 1H06 FY06 1H07 % yoy Net Interest Income 208.3 440.3 249.3 +19.7 120 Commercial Spread 3.30 3.39 3.67 37bps Avg loan rate 4.40 4.64 5.44 110bsp 100 Avg deposit rate -1.10 -1.25 -1.77 67bps 80 EURm Net Commission Income 212.7 420.9 214.1 +0.7 - of which:
Slide 14: Importance of Core Business
Importance of Core Business Net Profit Total Income EURm 1H06 FY06 1H07 EURm 1H06 FY06 1H07 Core business 107.3 194.7 110.4 Core business 465.7 932.4 496.0 Credem 90.2 159.9 94.3 Credem 392.2 798.9 425.0 Banca Euromobiliare 4.6 10.3 3.2 Banca Euromobiliare 30.3 61.6 29.0 Euromobiliare A.M. SGR 3.7 5
Slide 15: Lending
Lending Lending volumes Loans by clients EURm 1H06 1H07 yoy segment Small Business 3,150 3,826 21.5% 14.9 +12.6% Retail 4,532 5,204 14.8% 15 13.3 14.4 2.1 2.2 +15.3% SMEs 3,436 3,746 9.0% 12 2.0 6.0 5.2 5.0 4.6 +13.2% EURbn 3.9 4.2 +19.3% 5.0 9 4.0 3.8 3.7 1.7 1.8 1.8 +4.9% 4.0 3.5 3.3 3.5 3.7 6 3.1
Slide 16: Credit Quality
Credit Quality • Credit quality consistently high, with an NPL ratio of 0.24% • The management and collection of loans securitized in late 2000 (0.22% at December ‘06) compared to an industry average of continued with success. As at 31 December, 2006: 1.15% (Sources: Bank of Italy) - EURm 206 collec
Slide 17: Funding
Funding EURm 1H06 FY06 1H07 % yoy Mutual Funds breakdown Deposits 9,506 10,020 10,239 7.7 100% 359 751 702 687 Flex Bonds 4,345 4,431 5,554* 27.8 90% 80% 2,182 27.8% Portfolio Managed Accounts 5,171 5,931 6,358 23.0 1,900 24.0% 1,885 29.6% 1,835 Cash 70% 33.6% Mutual Funds and SICAVs 9,514 8,969 8,7
Slide 18: Long Term Strategy
• CREDEM at a Glance • Key Data • 1H07 Results • Long Term Strategy 18 Investor Relations september 2007
Slide 19: 1990 – 2006: Long Term Strategy
1990 – 2006 : Long Term Strategy 1990 – 1999 2000 – 2003 2004 – 2006 ACQUISITIONS ORGANIC GROWTH PROFITABILITY • Acquisition of more than 30 • Divisionalisation • Value creation from acquired small banks potential • 113 new branches opened • Acquisition in 1994 of • Central role of CREDEM’s core Eur
Slide 20: Organic Growth: a choice confirmed
Organic Growth: a choice confirmed 106 NEW branches and 40 corporate centres opened Loans & Fundings market shares - Italy s : n 6 year 26.0 si 24.0 v o lume a n k! 1.66% 22.0 ne w a ll b 1.50% 1.60% of m 1.53% 1.51% gas 20.0 1.50% 18.0 bil lions i rin 1.45% 16.0 24 acqu 1.25% 14.0 like 12.0 1.00% 1
Slide 21: 2006-2008 Business Plan Guidelines
2006-2008 Business Plan Guidelines STRATEGY 2008 GOALS CENTRAL ROLE OF CORE BUSINESS EXCELLENCE IN VALUE CREATION OVER TIME • Commercial Banking and Wealth Management activities generating well above 80% of Group’s • ROE consistently above 17% EBIT • Net Profit growing 11% cagr to 243 €million • Tar
Slide 22: Actions
Actions • 82 new branches, 2 new Corporate Centers, 9 closings. A larger, more up-to-date network. Areas to focus Selective increase for the growth: Nord East, North West, Tuscany and Marche. of the distribution network • New retail distribution model to aim at an higher effectiveness. Addition of m
Slide 23: 2008 Targets
2008 Targets CAGR Total Income Cont’d Operating Costs CAGR 1,200 1,158 7.0% 800 945 674 4.7% 700 900 586 649 4.5% 600 250 5.0% EURm 500 216 EURm 570 600 400 300 10.6% 300 509 200 423 370 4.6% 376 100 0 0 2005 2008P 2005 2008P Net interest income Non-interest income Payroll costs Admin. expenses Prof
Slide 24: 2008 Targets (Cont'd)
2008 Targets Customer Cash Loans CAGR Cont’d Funding from Customers CAGR 15 80 6.8% 11.2% 67.5 60 55.3 17.3 27.7 3.5% EURbn EURbn 12 40 25.0 12.6 22.7 8.1% 20 18.0 3.7 8.0 29.0% 9 8.6 9.0 1.5% 0 2005 2008P 2005 2008P Customers deposits Bonds AUM AUC TIER I Distribution Channels 1,200 8% 600 62 7.7%
Slide 25: 2008 P&L
2008 P&L EURm 2005 2008P CAGR Total Income CAGR will reach 7% with a strong contribution from 05-08 the interest income. Net Interest Income 376 509 10.6% Operating Costs, including D&A are expected to increase by 5% Net Commissions 415 474 4.6% reflecting increasing commercial investments estimated
Slide 26: Declaration
Declaration In accordance with section 2, Article 154-bis of the consolidated Law on Finance TUF), the Financial Reporting Manager Paolo Tommasini, declares that the accounting information contained in this press release corresponds to documentary records, ledgers and accounting entries. 26 Investor
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