Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (October 2009)
16 slides from Vienna Insurance's roadshow presentation, Oct 15, 2009
Slide 1: Building its Market Position and Financial Strength
V.I.G. Building its Market Position and Financial Strength Paris Roadshow, 15 - 16 October 2009
Slide 2: Contents
Contents A 2 A Investment proposition B Growth potential in CEE and Austria C Recent developments D 6M 2009 results – highlights
Slide 3: Investment Proposition at a Glance
Investment Proposition at a Glance V.I.G. set two strategic milestones A 3 Footprint Milestone 1 § V.I.G. - Pioneer in CEE; start of expansion in 1990 - “Big fish in a small pond” - Going east immediately after the fall of the iron curtain due to potential of emerging markets and geographic proximit
Slide 4: V.I.G. – Leading Insurer in CEE
V.I.G. – Leading Insurer in CEE Market strategy proves effective A 4 2005 2008 § Gross written premiums: € 5.0bn § Gross written premiums: € 7.9bn § Profit before tax: € 240mn § Profit before tax: € 541mn § Presence in 15 countries § Presence in 23 countries § No. 2 in CEE1 § No. 1 in CEE1 Strategy
Slide 5: Contents
Contents B 5 A Investment proposition B Growth potential in CEE and Austria C Recent developments D 6M 2009 results – highlights
Slide 6: V.I.G.'s Path of Growth
V.I.G.’s Path of Growth CEE markets still growing B 6 18.4% 19.1% § Reported Group growth rates (2005 – 2008 20.0% 17.8% 2005-2008 CAGR) showed strong double-digit Non-life development 10.0% Life § About two thirds of growth rates were Total organic 0.0% Reported Growth (2005-2008 CAGR) § Extraordin
Slide 7: V.I.G. Business Model Still in Place (I)
V.I.G. Business Model Still in Place (I) GDP growth and underpenetration are insurance drivers B 7 1998 Growth Markets Mature Markets Insurance Density (USD) 1,000 CRO Emerging Markets PL H RO Insurance demand BG SK CZ also strongly driven by UA SER TR catch-up process 0 1,000 10,000 GDP per Capita
Slide 8: V.I.G. Business Model Still in Place (II)
V.I.G. Business Model Still in Place (II) Catch-up potential in CEE in Non-life and Life B 8 Insurance Density 2008 (USD) Proportion of NL & L in CEE Markets 3,727 Life Non-life 2,866 Non-life 58% 53% 54% NL 73% 65% 61% Life 37% 80% L 41% 55% 59% 53% 47% 74% 86% 83% 88% 87% 86% 20% 27% 35% 39% 42% 4
Slide 9: V.I.G. Management Approach
V.I.G. Management Approach Strength of distribution supports future growth B 9 Multi-Brand Multi-Channel <10% Tied agents 11% - 20% Brokers 21% - 30% Banks Other 31% - 40% > 41% Austria Czech Rep. Slovakia + Romania Poland Hungary in total about 40 brands Croatia Others § Strong brand awareness in l
Slide 10: Contents
Contents C 10 A Investment proposition B Growth potential in CEE and Austria C Recent developments D 6M 2009 results – highlights
Slide 11: Financial Control and Business Initiatives
Financial Control and Business Initiatives Setting the basis for future performance C 11 Cost savings Annual cost savings target of at least € 100mn, to be >€ 100mn >€ 100mn reached by end of 2010 Scale-based § Streamlining of regional head offices § Bundling of operating and service departments ~€
Slide 12: Capitalisation
Capitalisation Strong capitalisation is excellent basis for future expansion C 12 Shareholders‘ Equity Capitalisation Change in Group Shareholders’ Equity (€mn) +8.5% § Group shareholders’ equity 4,488.8 increased by 8.5% to about € 4.5bn 4,138.8 in 6M 2009 § Comfortable solvency ratio of above 180%
Slide 13: Contents
Contents D 13 A Investment proposition B Growth potential in CEE and Austria C Recent developments D 6M 2009 results – highlights
Slide 14: 6M 2009 Highlights
6M 2009 Highlights V.I.G. – showing a solid business performance D 14 § EUR 230mn PBT – stable performance § Ongoing synergy projects § In a difficult economic period plus recently launched action V.I.G. focuses on profitable programme bear fruit growth - € ~ 40mn cost savings - 3% premium growth ex
Slide 15: 6M 2009 Financial Highlights
6M 2009 Financial Highlights HY results shaped by good operations and weaker capital markets D 15 GWP Profit before Tax 541 7,899 6,912 437 5,882 0.9% -20.1% 321 288 4,215 4,251 3,493 215 230 2006 2007 2008 6M 07 6M 08 6M 09 2006 2007 2008 6M 07 6M 08 6M 09 IFRS IFRS Net Profit after Tax and Minorit
Slide 16: Investment Summary
Investment Summary D 16 V.I.G. ahead of the game000 Local knowledge and brand awareness Extending distribution power and product development Significant catch-up potential in underpenetrated CEE insurance markets Experienced management and strong integration skills Strong balance sheet and prudent f
Vienna Insurance Group — Non-Deal Roadshow (October 2009) on 6ix