Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Investor Presentation (September 2008)
24 slides from Credito Emiliano's investor presentation, Sep 10, 2008
Slide 1: Credem Group Business Plan 2008-2010
CREDEM Group Business plan 2 0 2 0 0 8 1 0 10 September 2008 Investor Relations - CREDEM piano 2008 – 2010: dati gestionali 1
Slide 2: Previous Business Plan 2006-2008
Previous Business Plan 2006 - 2008 Business Plan 2008 - 2010 Investor Relations - CREDEM piano 2008 – 2010: dati gestionali 2
Slide 3: Guidelines Previous Plan 2006-2008
Guidelines Previous Plan 2006-2008 CENTRAL ROLE OF Strategy •CORE BUSINESS •CUSTOMERS •SHAREHOLDERS •ROE consistantly at excellent level over time Targets •Business volumes increase above industry growth rates •Selective expansion of distribution network •Strenghtening of Wealth Management and incre
Slide 4: Main Targets Business Plan 2006-2008
Main Targets Business Plan 2006-2008 CAGR CAGR Total Income Operating Costs ’05-’08 ’05-’08 8.2% 5.0% 1,107 685 1.200 875 800 591 34 30.8% 6.1% 26 592 242 5,0% 800 495 209 € mln € mln 400 10.7% 400 409 4.7% 515 356 380 0 0 2005 2008E 2005 2008E Net Interest Income Non Interest Income Payroll Admin e
Slide 5: Main Targets Business Plan 2006-2008
Main Targets Business Plan 2006-2008 CAGR CAGR Funding ’05-’08 Customers Cash Loans ’05-’08 (net of Repos) 67 6.8% 18 11.4% 55 80 20 13 0.2 3.5% 60 28 15 0.1 25 8.1% 11.2% € BN € BN 40 10 17.3 23 11.3% 12.6 18 20 17 5 12 0 0 2005 2008E 2005 2008E Deposits AUM AUC Loans Repos Capital Adequacy Distrib
Slide 6: Macro-economic scenario – Business Plan 2006-2008
Macro-economic scenario – Business Plan 2006-2008 Macro-economic scenario in the triennium has been significantly different from what Assumptions 2006 2007 2008 expected. MIB Index 8.0% 8.0% 8.0% 16.1% -8.0% -27.4%(*) Particularly, the inflection point became GNP Italy 1.2% 1.1% 1.4% evident startin
Slide 7: Main results as at 2007 year end
Main results as at 2007 year end During the period 2006-2007 (mln €) 2005 2007 CAGR 2008E CAGR revenues increased 7,2% per annum '05-'07 '05-'08 vs. an average forecast for the Net Interest Income 380 535 18.5% 515 10.7% tiennium 1 percentage point higher. Non Interest Income 495 471 -2.5% 592 6.10%
Slide 8: Main results as at 2007 year end
Main results as at 2007 year end Total Business (net of Repos) CAGR '05-'07 Vs '05-'08 85 7.7% 74 4.3% 90 68 Total Business developed in 2006- 80 -0.5% 28 3.5% 2007 at an average growth rate of 70 25 4,3%, vs. 7,7% expected for the 60 25 8.1% -2.3% 23 triennium. € mld 50 17 40 18 15.6% 11.3% 30 17 1
Slide 9: Main results as at 2007 year end
Main results as at 2007 year end Distribution Network 2005 2007 2008E Credem Branches 433 479 504 B.ca Euromobiliare Branches 22 22 24 Branches 455 501 528 Corporate Centres 40 42 42 During the period 2006-2007 54 new Points and Stores 60 66 48 branches wer opened mainly in the north-east and north-
Slide 10: Main results as at 2007 year end: Track Record
Main results as at 2007 year end Track Record 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 N. shares (/000) 225,839 253,408 265,464 270,679 272,537 273,309 274,350 275,417 278,605 281476 282,327 Net equity per share 2.07 2.34 2.27 2.55 2.86 3.08 3.23 3.64 4.00 4.60 5.10 Net Profit per shar
Slide 11: Business Plan 2008-2010
Previous Business Plan 2006 - 2008 Business Plan 2008 - 2010 Investor Relations - CREDEM piano 2008 – 2010: dati gestionali 11
Slide 12: Scenario
Scenario – Business Plan 2008-2010 Assumptions 2008 2009 2010 MSCI Europe -22.5% * Volatility and stabilization MIB Italy -27.4% * Volatility and stabilization GNP UEM 1.7% 1.3% 2.1% GNP It 0.2% 0.7% 1.6% Customers fundings 6.1% 5.6% 5.2% Customers fundings - Banks -9.7% 3.4% 6.2% Bank Loans 7.0% 7.
Slide 13: Strategy: Growing to keep being excellent
Strategy – Business Plan 2008-2010 GROWING TO KEEP BEING EXCELLENT Steady dimensional Systematic attention to: growth of: •Appropriate value •service quality •Assets creation for •relation with the •Distribution network shareholders in the clientele •Number of clients medium-long term •close presidi
Slide 14: Guidelines
Guidelines – Business Plan 2008-2010 1. Focus on distribution and exploitation of those factories coherent with group networks distribution capacity; • Full potential achievement from investments sustained for Guidelines organic growth during the last three years; • full integration of branches acqu
Slide 15: Guidelines: Increase of total activities with clientele
Guidelines – Business Plan 2008-2010 Increase of total activities with clientele by more than €18 billion within the end of 2010 with a growth average rate of Focus on distribution and 7.6%. exploitation of those factories coherent with This challenging target stands on the back of a strong belief g
Slide 16: Guidelines – Business Plan 2008-2010
Guidelines – Business Plan 2008-2010 Within the triennium the Group will accomplish different targets: •improvement of production procedures; •focusing on products factories supporting “core business” coherently with group’s distribution capacity (in particular, bancassurance and asset management, p
Slide 17: Guidelines – Risk and capital management
Guidelines – Business Plan 2008-2010 Continues the further strengthening program of risk and capital management, in a value management view, coherently with Basel 2 Pillar I and II, to keep a low risk appetite level and solid capital ratios. •Credem Group has started, a few years ago, a project whic
Slide 18: Main Targets – Business Plan 2008-2010
Main Targets – Business Plan 2008-2010 CAGR CAGR Total Income ’07-’10 ’07-’10 Operating Costs 1,107 7.9% 791 6.8% 1,006 4.2% 649 35 1.200 5.7% 800 5.9% 556 31 278 471 234 € mln € mln 600 9.8% 400 7.6% 707 478 535 384 0 0 2007 2010E 2007 2010E Net Interest Income Non Interest Income Payroll Admin exp
Slide 19: Main Targets – Business Plan 2008-2010
Main Targets – Business Plan 2008-2010 CAGR Funding Customers cash loans ’07-’10 (net of repos) (net of repos) 69.6 6.4% 57.8 80 2.1% 25 CAGR 26.0 ’07-’10 60 25.0 20 9.6% € mld 12.4% 18.9 15 € mld 40 22.1 14.4 4.5% 2.4 10 15.6 2.1 9.8% 20 21.9 16.5 5 0 0 2007 2010E 2007 2010E Deposits Insurance AUM
Slide 20: Income Statement – Business Plan 2008-2010
Income Statement – Business Plan 2008-2010 Total Income will grow by 7.9% cagr. Net Interest Income component will mantain a good growth trend, around 10%. Non Interest Income will start growing again (5.7%) thanks to the recovery of trading and wealth management (mln €) 2007 2010E CAGR businesses.
Slide 21: Distribution Network – Business Plan 2008-2010
Distribution Network – Business Plan 2008-2010 94 branches growth in the triennium will be the result of: Distribution Network 2007 2010E 72 branches acquired 22 branches opened Branches 501 595 Corporate Centres 42 44 2 new corporate centers opened. Points and Stores 66 86 20 new financial stores w
Slide 22: Funding – Business Plan 2008-2010
Funding – Business Plan 2008-2010 Total funding will grow by 6.4% (8,6% considering customers contribution only, vs. an estimated market growth of 6%). (€ mln) 2007 2010E CAGR '07-'10 Deposits & Bonds 16,530 21,886 9.8% Net inflows is estimated to grow by €6 Insurance 2,146 2,447 4.5% billion in the
Slide 23: Customers Loans – Business Plan 2008-2010
Customers Loans – Business Plan 2008-2010 Lending will keep growing steadily by 12.4% (market is estimated to grow by 7- 7.5%). 2007 2010E CAGR Main contribution will keep coming from (€ mln) '07-‘10 Loans 15,569 22,100 11.2% “core” segments: Repos 194 231 25.5% Total 15,763 22,331 11.4% •Retail bus
Slide 24: Notes
Notes: The strategic plan takes into consideration the acquisition of the 72 branches from Citigroup, Banco Popolare and Unicredit, which were, or will be, integrated in different steps within December 2008. Five private branches acquired from Citigroup and the 33 from Banco Popolare have been alrea
Credito Emiliano S.p.A. (Credem Group) — Investor Presentation (September 2008) on 6ix