Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2004)
21 slides from Commerzbank's investor day presentation, Sep 22, 2004
Slide 1: Commerzbank investors' day 2004 asset management: from shrink to grow
Commerzbank investors‘ day 2004 asset management: ”from shrink to grow“ Klaus M. Patig Member of the Board of Managing Directors Frankfurt September 22
Slide 2: CB Asset Management - successful turnaround
Chart 1 CB Asset Management - successful turnaround Ø Concentration on core markets and products Ø Closure and sale of non-core units Ø Profitable and streamlined business model Ø Positive profit swing of €80m (2002 to 2003) Ø 48% cut in operating expenses 130-145 532 Direct expenses ex. allocated c
Slide 3: Value driver analysis: assets under management
Chart 2 Value driver analysis: assets under management* modest growth 120 19.9 100 13.0 80 € bn 60 97.2 40 83.3 86.7 79.4 20 0 Dec 2001 Dec 2002 Dec 2003 Jun 2004 core entities others * without private asset management and real estate
Slide 4: Value driver analysis: development of asset mix
Chart 3 Value driver analysis: development of asset mix 2001 2004 6.5% 10.4% 0.0% 15.3% 13.8% 37.8% 49.0% 12.8% 29.2% 25.1% Equities Fixed Income Money Market Balanced1 Others2 (1) In 2001 the volumes of balanced mandates were split into equities and bonds (2) Others incl. advisory mandates, discret
Slide 5: Value driver analysis: shift towards retail
Chart 4 Value driver analysis: shift towards retail 2001 2004 46.1% 49.2% 50.8% 53.9% Retail Institutional
Slide 6: Development of revenues and expenses
Chart 5 Development of revenues and expenses Revenues (€ m) 700 577.5 600 91.1* 500 459.4 434.7 400 402.7 Fee income and operating expenses 300 (excl. allocated costs) in b.p. to AuM 200 70 100 60 55 52 52 51 0 50 45 46 2001 2002 2003 2004e 38 40 34 Operating expenses (excl. allocated cost) (€ m) 30
Slide 7: Development of cost/income ratio / RoE
Chart 6 Development of cost/income ratio / RoE 120% 101.7% 97.4% 100% 79.3% 80% 69.4% 60% 40% 26.0% 20% 14.1% -1.2% 1.6% 0% 2001 2002 2003 2004e -20% Cost/income ratio operative RoE (regulatory capital)
Slide 8: Headcount down, productivity up
Chart 7 Headcount down, productivity up FTE € ‚000 2,500 40 34 35 33 2,000 333 30 308 27 25 1,500 25 1,831 20 1,657 1,316 1,333 1,000 15 13 12 11 12 10 500 5 0 0 Dec 2001 Dec 2002 Dec 2003 Jul 2004 core entities others total revenues per FTE personnel costs per FTE
Slide 9: Financials – operating profit H1 2004
Chart 8 Financials – operating profit H1 2004 (in € m) 300 249 144 250 200 150 105 13 100 92 50 0 Total revenues Direct expenses Operating profit Allocated costs Operating profit excl. allocated costs
Slide 10: Financials – core units' operating results H1 2004
Chart 9 Financials – core units’ operating results H1 2004 Cominvest Jupiter CCR Operating profit incl. funding costs* 35.2 13.5 31.9 in m€ (w/o fund. costs) (44.2) (16.0) (34.0) ROE in % 174.9 21.2 52.9 Cost/income ratio 64.4 80.1 35.8 in % Assets under man. 53.0 16.2 12.7 in bn € * funding costs =
Slide 11: Financials – goodwill impact H1 2004
Chart 10 Financials – goodwill impact H1 2004 in € m 120 12.8 105.0 100 29.2 80 63.0 60 40 20 0 Net profit Goodwill Goodwill funding Operating profit amortisation costs before goodwill- related charges
Slide 12: CB Asset Management – European lineup
Chart 11 CB Asset Management – European lineup § Diversified business model: asset classes / countries / distribution § “Best-of” strategy: various teams of experts with unique competence § Synergies in sales, marketing and product development § Current focus: upgrade of Cominvest production and dis
Slide 13: Unit highlights
Chart 12 Unit highlights Jupiter: § Hedge fund business continues to grow to £420m § Shifting retail distribution efforts to banks and insurers § Institutional business continued to shrink § Net inflows in H1 2004 up 145% compared with H1 2003 CCR: § Ongoing shift from pure money-market to equity an
Slide 14: Cominvest
Chart 13 Cominvest § Continuing to adapt to “Open Architecture” § Retail distribution: net outflows continue Ø Certificates Ø Popularity of real estate funds (CGI) Ø “Open Architecture” § Raising retail fees to market norms § New products: Ø Total return products Ø Multi-manager-funds with SEI Inves
Slide 15: Recognized excellence
Chart 14 Recognized excellence S&P FUND AWARDS 2004 European Equity 1st place: ADIG Europ. Value Equity European Fixed Income 1st place: ADIG Adireth Balanced 1st place : ADIG Fondra Investment Week Global Group of the Year AMADEIS Survey of French Inst. Investors Best 3-year performance for entire
Slide 16: Cross-selling / outsourcing
Chart 15 Cross-selling / outsourcing § Jupiter replaces Cominvest as adviser of ADIG Europe Select § Commerzbank branch network identifies ADIG European Value Equity advised by CCR as top quality product, resulting in total inflows of €140m § Centrale Croissance Europe: French equity fund managed by
Slide 17: European "Best-Of" approach
Chart 16 European “Best-Of” approach ADIG Europ. Emerging Market Equity è Managed by JUPITER, London S&P: µµµµµ, Top East Eur. Fund ADIG Fondak è Managed by COMINVEST, Frankfurt, S&P: µµµµµ, German equity More than 11% performance p.a.over 50 years ADIG European Value Equity è Managed by CCR, Paris
Slide 18: Hedge funds
Chart 17 Hedge funds § Three long/short equity strategies available from Jupiter Ø Jupiter Hyde Park: Global with financial services tilt (closed) Ø Jupiter Europa: European equities Ø Jupiter Ganymede: UK equities § CCR uses “macro”, volatility and convertible bond strategies in its sensitive money
Slide 19: Conclusion – strong progress
Chart 18 Conclusion – strong progress • Asset Management re-established as core activity of Commerzbank • Contribution of 10% to 15% to Commerzbank’s operating profits in 2004 • ROE of 26% and CIR of 69.4% in 2004e Outlook: è Open to acquisitions providing operational synergies, complementary produc
Slide 20: For more information, please contact
For more information, please contact: Commerzbank Investor Relations Tel. +49 (69) 136 22 33 8 [email protected]
Slide 21: Investor relations disclaimer
Chart 20 Chart 18 /investor relations/ This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers. / Any information in this presentation is based on data obtained from sources considered to be reliable, but no represen