Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2006)
25 slides from Commerzbank's investor day presentation, Sep 21, 2006
Slide 1: Investors' Day: Clear objectives for the future
Investors´ DAY Clear objectives for the future Frankfurt, September 21, 2006 Klaus-Peter Müller Chairman of the Board of Managing Directors
Slide 2: Disclaimer
Disclaimer / investor relations / All presentations shown at Investors’ Day contain pro forma results for Q1 2006 and Q1-Q4 2005 to fully reflect the integration effect of Eurohypo. The pro forma results include Eurohypo results as if integrated as from January 1st, 2005 (incl. full refinancing cost
Slide 3: Agenda
Agenda 1. Improved Performance 2. Clear Strategic Positioning 3. Management Agenda: Growth & Profitability 4. Targets 3 / 24
Slide 4: Strong track record of growth and value creation for shareholders
Investors’ Day 2006 Commerzbank has delivered a strong track record of growth and value creation for shareholders Net earnings per share* Dividend per share CB-share vs. MSCI in € in € Target >0.5 0.50 2.00 0.25 0.61 1.59 0.00 Jan. 06 Jan. 05 Jan. 03 Jan. 04 Jul. 06 Jul. 04 Jul. 05 Jul. 03 2003 2004
Slide 5: Continuous increase in operating profit and RoE supported by improved efficiency
Continuous increase in operating profit and RoE supported by improved efficiency Operating profit Operating RoE Cost income ratio in €m in % in % 28.1 77.3 73.3 70.9 2,030 64.4 17.7 54.8 1,011 1,732 9.9 559 1H 1H 1H 04 05 05 4.9 192 1.6 2002 2003 2004 2005 1H 06 2002 2003 2004 2005 1H 06 2002 2003 2
Slide 6: Core segments making good progress
Core segments making good progress Operating profit in €m Full year 2006p * Op. RoE annualized Private & Bus. Customers Asset Management Mittelstand Nearly stable operating profit Higher commission income Continues upward trend Note: Before one-offs due to harmonization of provisioning standards CB/
Slide 7: Agenda
Agenda 1. Improved Performance 2. Clear Strategic Positioning 3. Management Agenda: Growth & Profitability 4. Targets 7 / 24
Slide 8: New Group Structure: Clear strategic objectives for each unit
New Group Structure: Clear strategic objectives for each unit The Leading Commercial Bank in Germany PCAM CIB CREPT (Private & Business Customers (Mittelstand and (Commercial Real Estate, and Asset Management) Corporates & Markets) Public Finance and Treasury) Europe´s leading The best nationwide Be
Slide 9: Strategic objectives supported by strong market positions in core segments
Strategic objectives supported by strong market positions in core segments Objectives Status Quo market position • No 3 German Retailbank with 5 m customers: Strong market share among affluents PCAM Best Retail Bank • No 1 in Online Brokerage in Germany • No 2 home finance provider • Among top 3 in
Slide 10: Core region: focus on Germany and selected international business
Core region: Commerzbank with focus on Germany and selected international business Focus Germany Claims on customers 27 in % 73 Operating profit in % 38 62 Abroad Employees Germany in % 23 77 Year end 2005 only CB Selected international business • Supporting German Mittelstand in international busin
Slide 11: Commerzbank benefits from recovering German economy
Commerzbank benefits from recovering German economy Q2 2006 strong GDP growth Noticeable progress has taken place Germany: Gross domestic product real, seasonally adjusted, change in ppt 1.00 2.5 • German business structures 0.75 2.0 more flexible, especially wages 0.50 1.5 and working time 1.0 0.25
Slide 12: Agenda
Agenda 1. Improved Performance 2. Clear Strategic Positioning 3. Management Agenda: Growth & Profitability 4. Targets 12 / 24
Slide 13: Management Agenda: Enhancing Growth & Profitability
Management Agenda: Enhancing Growth & Profitability Growth and increase in profitability Profitability • Non-core participations sold Stabilization • Restored profitability in • Capital base Retail Banking and Asset strengthened Management • Costs cut rigidly • Major turnaround in • Loan portfolio a
Slide 14: Focussed investment strategy to sharpen profile and increase growth
Focussed investment strategy to sharpen profile and increase growth and profitability Target Growth and increased profitability Action Investment Divestment • Participating in external growth • Active capital management: e.g. sale of opportunities: Eurohypo, Russia non-strategic participations and E
Slide 15: Investing: Selected acquisitions and investment in core segments
Investing: Selected acquisitions and investment in core segments Examples • Strategically and financially attractive acquisition Eurohypo • Integration process fully on track External growth • Acquisition of 15% stake in Promsvyazbank to participate in fast Russia growing Russian market • Option of
Slide 16: Divesting: active capital management and efficiency enhancement
Divesting: active capital management and continuous efficency enhancement Examples • Sale of non-strategic participations, e.g. KEB, MAN, Disposals Heidelberger Druck, Unibanco, Banca Intesa management • Review Jupiter IPO Capital • €4,5 bn CLO´s 2Q 2006 Securitization • €500 m loans via TSI 3Q 2006
Slide 17: Eurohypo acquisition supports Commerzbank's strategic objectives
Eurohypo acquisition supports Commerzbank’s strategic objectives Strategic position: strong pillar Profitability: acquisition RoE accretive New group structure Operating RoE In % +2.2ppts +0.9ppts 33.5% 31.3% PCAM CIB CRE, Public Finance and 16.8% 17.7% Treasury 2005 1Q 2006 CB stand CB+EH CB stand
Slide 18: Eurohypo integration on track, net synergies higher than expected
Integration process of Eurohypo on track, net synergies higher than expected, positive effects on cost of capital All integration projects fully in line with plan Net synergies ü Required actions initiated in €m 100 - 130 142 30 66* 20 Joint business processes established Cost synergies ü Key functi
Slide 19: Acquisition of 15% stake in Promsvyazbank
First step: acquisition of 15% stake in Promsvyazbank to benefit from Russia´s attractive market • Attractive market: Upside potential via catch-up of banking penetration level, additionally supported by dynamic GDP development Strong • Attractive target: Promsvyazbank, currently ranked number 12 in
Slide 20: Integration of Eurohypo risk management completed
Integration of Eurohypo risk management completed Eurohypo Net-LLP 2006 before fully integrated in one-off items below budget; Commerzbank´s incl. harmonisation of risk management provisioning methodologies 1. below €1 bn, 2007 below 2. €0.9 bn Prudent risk management Sustainable reduction of Strate
Slide 21: Agenda
Agenda 1. Improved Performance 2. Clear Strategic Positioning 3. Management Agenda: Growth & Profitability 4. Targets 21 / 24
Slide 22: Clear strategic position and objectives for growth and profitability
Commerzbank with clear strategic position and objectives for growth and profitability Leading Commercial Bank in Germany: Clear • Well positioned in defined core segments strategic • Focussed on recovering German market and positioning related international business • Strengthening position by selec
Slide 23: Revenue growth and stable costs leading to significant profitability increase
Further growth in revenues and stable cost situation leading in the medium-term to significant increase in profitability Trend 2005* 2005-2008 Comments • Investments in core segments (examples): Revenues - PCAM: comdirect, upper retail and affluent after LLP €6.8bn customers - CIB: new clients, incr
Slide 24: Leading Commercial Bank in Germany: financial targets on track
Commerzbank: The Leading Commercial Bank in Germany - strongly positioned to continue profitable growth Financial target on track 2010e 2007p 2006p 15% 2005 ≥ 11% ≥ 10% Long-term RoE RoE: 9.6% goal RoE after tax adjusted of one-off positions CIR: 67% ≤ 65% ≤63% ≤60% As of 1H 2006 ü ü ü As of 1H 2006
Slide 25: For more information, please contact
For more information, please contact: Ute Heiserer-Jäckel P: +49 69 136 41874 Jürgen Ackermann (Head of IR) M: ute.heiserer-jaeckel@commerzbank.com P: +49 69 136 22338 M: juergen.ackermann@commerzbank.com Simone Nuxoll P: +49 69 136 45660 Sandra Büschken (Deputy Head of IR) M: simone.nuxoll@commerzb