Allianz SE · XETR:ALV
Allianz — Investor Day (July 2006)
101 slides from Allianz's investor day presentation, Jul 13, 2006
Slide 1: Creating customer loyalty
Allianz Capital Markets Day Creating customer loyalty Munich July 13, 2006
Slide 2: Agenda
Agenda The Customer Focus Initiative Jan Carendi A Chuck Kavitsky Reorganization of German Insurance Gerhard Rupprecht B Investment Banking Stefan Jentzsch C Appendix Investor Relations contacts D 01 © Allianz AG 2006 Financial calendar D 02 Disclaimer D 03
Slide 3: The Customer Focus Initiative
The Customer Focus Initiative Jan Carendi, Chuck Kavitsky
Slide 4: Agenda
Agenda I. The Customer Focus promise II. Measuring customer loyalty III. Implementation IV. Successful FFIC pilot V. Summary © Allianz AG 2006 A 01
Slide 5: The Customer Focus promise
I. The Customer Focus promise The Customer Focus promise Allianz will create a superior customer experience that maximizes customer loyalty and results in ! Increased referrals, retention and cross-selling ! Sustainable profitablegrowth ! Increased shareholder value © Allianz AG 2006 A 02
Slide 6: What is Customer Focus?
I. The Customer Focus promise What is Customer Focus? Listening to our customers, understanding their needs and implementing solutions to exceed their rational and emotional expectations ! Ease of doing business with Allianz ! Fast and professional problem resolution ! Peace of mind and trust in all
Slide 7: The opportunity: only 33% of defectors leave because of price
I. The Customer Focus promise The opportunity: only 33% of defectors leave because of price Reasons for defection in % of total responses (P/C Germany) 2 1 100% 8 80% 9 12 60% 14 40% 21 20% 33 © Allianz AG 2006 0% Price External Company Field Product Back- Claim Relo- factors in general staff offeri
Slide 8: Agenda
Agenda I. The Customer Focus promise II. Measuring customer loyalty III. Implementation IV. Successful FFIC pilot V. Summary © Allianz AG 2006 A 05
Slide 9: Net Promoter Score is Allianz' key metric to measure and manage customer focus
II. Measuring customer loyalty Net Promoter® Score (NPS) is Allianz’ key metric to measure and manage customer focus How the NPS works Question "On a scale 0-10, how likely is it that you would Focus on recommend our company to a friend or colleague?" emotional bonding Focus on real enthusiasm Scale
Slide 10: Allianz in line with market, but significant room for improvement
II. Measuring customer loyalty Allianz in line with market, but significant room for improvement Average NPS performance -6.2% -6.1% 12.4% NPS 25.8% Percentage of respondents on NPS scale 26.1% 34.7% Promoters ∆8.9%-p (NPS scale 9 – 10) Passives 41.6% 42.3% (NPS scale 7 – 8)) 43.0% Detractors (NPS s
Slide 11: Promoters are significantly more valuable than detractors
II. Measuring customer loyalty Promoters are significantly more valuable than detractors Promoters defect less Promoters buy more Promoters drive business Indexed average gross premium volume Indexed average of newly concluded gross Indexed average new GPW generated cancelled per customer and year1
Slide 12: NPS and top-line growth strongly correlated
II. Measuring customer loyalty NPS and top-line growth strongly correlated NPS versus growth in GPW Insurance companies Germany US Life insurance CAGR GPW 2002-2004 CAGR revenues 1999-2003 % 20 % 8 15 6 10 4 5 2 0 0 -5 -2 -40 -20 0 20 40% -40 -20 0 20 40 60 80% NPS NPS © Allianz AG 2006 R² = 0.62 R²
Slide 13: Proven relationship between NPS and organic growth valid for Allianz as well
II. Measuring customer loyalty Proven relationship between NPS and organic growth valid for Allianz as well Relationship between NPS and top-line growth (P/C) Difference: 4.8 %pts GPW 2002-2005 Average CAGR Difference: 4.5 %pts 9.3% 4.5% 0.03% Allianz OEs1 with Allianz OEs with Allianz OEs with NPS
Slide 14: P/C: large OEs have huge improvement potential
II. Measuring customer loyalty P/C: large OEs have huge improvement potential NPS performance within local benchmark GPW 2005 CAGR -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% in EUR bn GPW 2002 - 2005 Subsidiary A Subsidiary B Subsidiary C 17.2 0.03% Subsidiary D Subsidiary E ∆ 4.5 %pts Subsidiar
Slide 15: L/H: opportunities for cross-border know-how transfer
II. Measuring customer loyalty L/H: opportunities for cross-border know-how transfer NPS performance within local benchmark -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Stat. premiums 2005 in EUR bn Subsidiary A Subsidiary B Subsidiary C Explanation: relevant market average Allianz NPS position Su
Slide 16: Agenda
Agenda I. The Customer Focus promise II. Measuring customer loyalty III. Implementation IV. Successful FFIC pilot V. Summary © Allianz AG 2006 A 13
Slide 17: Bottom-up NPS mobilizes staff to be more customer focused
III. Implementation Bottom-up NPS “mobilizes” staff to be more customer focused Top-down NPS ! Top management KPI to measure Customer Measured on OE level Focus success in comparison to ! Benchmark OEs with key competitors over time key competitors ! Used for management incentives and OE target- set
Slide 18: The Bottom-up NPS process
III. Implementation The Bottom-up NPS process 1 2 Touchpoints Allianz call center (Mondial) Identify critical customer interactions First short telephone call ! Claims ! Ask for NPS On a scale 0-10, how likely is it that ! Payment difficulties ! Ask for primary reason you will recommend ! Complaints
Slide 19: High customer acceptance of NPS survey
III. Implementation High customer acceptance of NPS survey Customers 91% 85% © Allianz AG 2006 Participated in Accepted feedback call NPS survey from Allianz employee Source: Allianz 2005 A 16
Slide 20: Bottom-up NPS measurement offers perfect tool for operative management
III. Implementation Bottom-up NPS measurement offers perfect tool for operative management Touchpoint advice/quotation, German property business without motor New business ratio1 (Jan-Sep 2005; Property w/o motor) Ø-NPS 8% ~63% of agents with 28% above average NPS (>28%) show new business ratio abov
Slide 21: Bottom-up NPS is complemented by Service Recovery
III. Implementation Bottom-up NPS is complemented by Service Recovery in order to turn detractors into promoters Current customer base CFI enablers Target customer base Promoters Bottom-up Promoters NPS for critical touchpoints Passives Passives Service Detractors Recovery Detractors © Allianz AG 20
Slide 22: Service Recovery takes complaint management into the next dimension
III. Implementation Service Recovery takes complaint management into the next dimension ! Customers want a reliable, hassle-free and result- Direct complaints oriented complaint management experience ! Customers experiencing poor problem resolution are 3 x more likely to defect ! Superior problem-so
Slide 23: Where do we stand today?
III. Implementation Where do we stand today? Status All tools were piloted in 2005 at 4 flagship OEs in different lines of business and markets Top-down NPS implemented as KPI in all flagship OEs CF targets will be substantially reflected in all management incentive schemes Group-wide tools as Botto
Slide 24: Agenda
Agenda I. The Customer Focus promise II. Measuring customer loyalty III. Implementation IV. Successful FFIC pilot V. Summary © Allianz AG 2006 A 21
Slide 25: FFIC addresses three key themes to deliver the desired customer experience
IV. Successful FFIC pilot FFIC addresses three key themes to deliver the desired customer experience Allowed to Want to Do they have the right Able to leadership encouragement, Do we measure them, the right processes and reward them and recognize Do they have the technology, and do we them appropria
Slide 26: In 2005, FFIC executed several major initiatives
IV. Successful FFIC pilot In 2005, FFIC executed several major initiatives to improve customer focus January March June September 2006 2005 ! Enterprise agency management ! Agency segmentation and service differentiation ! Substantially improved sales fundamentals ! Pipeline of innovative product la
Slide 27: Break-down of NPS score provides perfect management tool
IV. Successful FFIC pilot Break-down of NPS score provides perfect management tool Bottom-up NPS performance Team A: + 77% by team and region1 Promoters 84% Passives 9% Detractors 7% South West: + 67% Team B: + 63% Promoters 72% Promoters 74% Passives 19% Passives 19% Detractors 9% Detractors 7% Tea
Slide 28: FFIC's NPS improved by 19%-points in one year
IV. Successful FFIC pilot FFIC’s NPS improved by 19%-points in one year … NPS (in %) 2005 2006 58 44 42 35 31 28 28 25 22 16 17 9 5 5 -8 -20 Company A Company B Fireman's Fund Company D Market Company E Company F Company G Average © Allianz AG 2006 +14%pt +11%pt +19%pt +19%pt +8%pt -6%pts 0%pt +12%p
Slide 29: … and it works!
IV. Successful FFIC pilot … and it works! Top-down NPS1 NPW growth 20052 In % In % 2x 35 9.1 16 2.5 1.9 -0.1 © Allianz AG 2006 2005 2006 FFIC Industry FFIC Industry Personal Commercial 1) Data collected in early 2006 and 2005 respectively, therefore reflects experiences made in the previous year 2)
Slide 30: Agenda
Agenda I. The Customer Focus promise II. Measuring customer loyalty III. Implementation IV. Successful FFIC pilot V. Summary © Allianz AG 2006 A 27
Slide 31: The CFI aims to encourage OEs to become willing participants
V. Summary The CFI aims to encourage OEs to become ‘willing participants’ Able to: Want to: Allowed to: ! Sufficient support, ! Compensation and recognition ! CFI is a clear priority i.e. tools, methods ! Success stories demonstrating ! Sufficient local and solutions business & financial impact reso
Slide 32: CFI success measured through dedicated framework
V. Summary CFI success measured through dedicated framework Leading Group Top-down NPS indicator Lagging Group Retention Cross-/up-selling New bus./referrals indicator Leading OE Bottom-up NPS at chosen customer touchpoints (sales, claims, etc.) indicator Service Segment- OE-specific Defection & Gro
Slide 33: Take aways
V. Summary Take aways Customer Focus Initiative ! Customer loyalty drives profitablegrowth ! NPS provides perfect tool to measure and incentivize customer focus ! Consistent group-wide implementation of CFI initiated ! CFI targets part of top management compensation scheme ! Current NPS and customer
Slide 34: Everything we do at Allianz should start and end with the customer's best interest
“Everything we do at Allianz should start and end with the customer’s best interest in mind … building loyalty with profitable customers” © Allianz AG 2006 A 31
Slide 35: Appendix
Appendix Allianz @)
Slide 36: Understanding the language of CFI
Appendix Understanding the language of CFI Net Promoter Score (NPS) ! Promoters as percentage of total number surveyed minus detractors as percentage of total number surveyed Top-down NPS ! Measured on OE level in comparison to key competitors ! High correlation between NPS and growth Bottom-up NPS
Slide 37: Reorganization of German insurance
Reorganization of German insurance Gerhard Rupprecht
Slide 38: Agenda
Agenda I. Introduction II. German insurance reorganization III. Take aways © Allianz AG 2006 B 01
Slide 39: Reorganization of German insurance integral part of strategic initiatives
I. Introduction Reorganization of German insurance integral part of strategic initiatives ! Distribution Growth ! Products/ Services Secure Pipe- Bank Dresdner European Sustain- German insurance Customer AGR AMA Integrated Financial No. 1 Growth Growth complexity ability Focus line reorgani- reorgan
Slide 40: Overview – Allianz's German insurance business 2005
I. Introduction Overview – Allianz´s German insurance business 2005 Key figures (IFRS) P/C1 Life Health Revenues2 (EUR bn) 10.0 12.2 3.0 Net income3 (EUR m) 1,213 329 96 Market share4 (%) 17.0 16.3 11.1 Customers5 12.4m 8.4m 4.2m Product mix (%) Comple- Compre- mentary hensive Others Motor Others6 A
Slide 41: Strong position in German insurance, but reorganization necessary
I. Introduction Strong position in German insurance, but reorganization necessary Distribution Products/Services Efficiency ! Strong composite ! Full product range ! Well established captive sales force ! Innovative “assis- internal bench- ! Multi-channel tance” services marking approach ! Strong IT
Slide 42: Huge cross-selling potential in insurance
I. Introduction Huge cross-selling potential in insurance … Total private insurance customers 19.8m Only 22% of customers have policies in more than one LoB1 P/C: 12.4m Only 4% of customers have policies in each Life: 8.4m LoB1 4% © Allianz AG 2006 Health: 4.2m 1) Line of business B 05
Slide 43: …as well as in banking
I. Introduction …as well as in banking Total private customers ~24m Private insurance Only 10% of customers 19.8m insurance customers have Dresdner accounts Only 9% of all 2.1m customers customers have insurance policies and Dresdner accounts © Allianz AG 2006 Dresdner Bank customers 5.8m B 06
Slide 44: Target Operating Model as basis for German reorganization
I. Introduction Target Operating Model as basis for German reorganization Management / Central Functions Life Customer Property Centric Distribution Marketing Health Operations © Allianz AG 2006 Business model centered around the client needs B 07
Slide 45: Our approach to strengthen competitive advantages
I. Introduction Our approach to strengthen competitive advantages Sustainability Program - sharing best practice 1 Distribution 2 Products/Services 3 Efficiency ! Profit-oriented ! Service enhanced ! Structures distribution products with USP1 ! Processes company ! Standardization of ! IT ! Improved
Slide 46: Agenda
Agenda I. Introduction II. German insurance reorganization III. Take aways © Allianz AG 2006 B 09
Slide 47: Distribution: where are we now?
II. German insurance reorganization 1 Distribution: where are we now? We are strong … … but Tied agents ! 11,000 agents selling full range of ! Too many products per agent diluting financial services individual strengths ! Largest insurance sales force ! Strong in rural areas, weaker in big cities B
Slide 48: Distribution: how to grow our business
II. German insurance reorganization 1 Distribution: how to grow our business ! Common basis for sales planning, sales steering, restructuring of sales Profit-oriented network distribution ! Incorporate profit orientation in distribution company company ! Comprehensive tracking of client profitabilit
Slide 49: Distribution: new data mining tools as example for better use of database
II. German insurance reorganization 1 Distribution: “new data mining tools” as example for better use of database Sales promotion ! Identifying and disclosing “best customers” to sales staff Identifying ! Target: renewals or “best customers” rearrangement of contracts with high Risk of surrender Val
Slide 50: Distribution: success of CFI-pilot as example for winning customers
II. German insurance reorganization 1 Distribution: success of CFI-pilot as example for winning customers Mortgage business Allianz Leben Development NPS1 Rolling 3-Month avg. New business development 70% NPS in % 180 EUR m 60% 150 120 50% 90 40% 60 30% 30 20% 0 Jul 04 Jul 05 Nov 04 Nov 05 May 04 Ja
Slide 51: Products: where are we now?
II. German insurance reorganization 2 Products: where are we now? We are strong … … but Life ! Very strong brand ! Complex product portfolio ! Successful product innovations e.g. in P/C ~140 products with ~800 tariff like Allianz Indexpolice options ! Sole provider of full range of ! Market percepti
Slide 52: Products: how to grow our business
II. German insurance reorganization 2 Products: how to grow our business Service Build on specific Allianz abilities enhanced " Difficult to copy, attractive margins products - Assistance: - Accident 60 Active " builds on assistance for elderly people - Home emergency " builds on assistance for home
Slide 53: Structures, processes and IT: where are we now?
II. German insurance reorganization 3 Structures, processes and IT: where are we now? Traditional structures… … but P/C Life Health ! 21 locations Product Product Product ! Heterogeneous service levels and client development development development handling due to highly decentralized responsibiliti
Slide 54: Structures: implementation of Target Operating Model in Germany
II. German insurance reorganization 3 Structures: implementation of Target Operating Model in Germany Starting position Status today Target Allianz AG ! German Insurance Allianz SE Holding established ! Top management team P/C Life Health in place German Insurance Holding e don Operations Operations
Slide 55: Structures: new location concept
II. German insurance reorganization 3 Structures: new location concept Starting position Status today Target 2008 ! 7 regions organized into don e 4 regions ! 12 distribution head-offices e merged into 11 don ! 114 sales support offices e merged into 90 don ! 21 administrative locations s p rogres t
Slide 56: Processes: client/agent handling
II. German insurance reorganization 3 Processes: client/agent handling Customer/Agent Call / Non-Call Target Customer 80% Frequent transactions with high Care of degree of standardization across all LoBs Center requests Forwarding of infrequent transactions Product 20% & Process Case solutions handl
Slide 57: IT: increased efficiency through standardized platform
II. German insurance reorganization 3 IT: increased efficiency through standardized platform From old model with separate IT platforms… Status: successful blue prints P/C Life Health in Switzerland and Austria Policies Claims Policies Claims Policies Claims Austria Accounting Payment Accounting Paym
Slide 58: Target Operating Model requires less employees
II. German insurance reorganization 3 Target Operating Model requires less employees New location concept: FTEs1 by region Status as of 30/09/2005 Target (after implementation of Target Operating Model) D 2,828 D 2,952 D 2,639 D 2,789 A 3,921 A 3,174 A 2,150 A 2,669 Σ 6,750 Σ 6,127 Σ 4,789 Σ 5,457 T
Slide 59: Status
II. German insurance reorganization Status ! Overall restructuring package and voluntary leave program agreed with Workers’ Councils - No compulsory redundancies during 2006 and 2007 - Prolongation until 2010 possible, if specified growth and cost targets are achieved on an annual basis ! Expected c
Slide 60: Time schedule for Target Operating Model
II. German insurance reorganization Time schedule for Target Operating Model Conception 08/2006 Implementation Ensure technical and organizational requirements 07/2007 Target Operating Model Rollout Today 01/2007 01/2008 12/2008 © Allianz AG 2006 B 23
Slide 61: Agenda
Agenda I. Introduction II. German insurance reorganization III. Take aways © Allianz AG 2006 B 24
Slide 62: Take aways
III. Take aways Take aways German insurance reorganization ! Abolish complex structures and cost duplications ! Organize customer centric processes ! Exploit huge cross-selling potential ! Place emphasis on value-adding services ! Implement best in class business model © Allianz AG 2006 Generate pro
Slide 63: Appendix
Appendix Appendix © Allianz AG 2006 B 26
Slide 64: Overview - German P/C: 12.4m customers - Allianz ranks #1
Appendix Overview - German P/C1 12.4m customers - Allianz ranks # 1 Key figures (IFRS) 2001 2002 2003 2004 2005 GPW (EUR bn) 9.7 9.8 10.1 10.2 10.0 Expense ratio (%) 26.9 28.0 24.9 24.6 24.2 Claims ratio (%) 70.9 73.5 68.1 63.5 63.7 Combined ratio (%) 97.8 101.5 93.0 88.2 87.9 Net income2 (EUR bn) 1
Slide 65: Overview - German Life: 8.4m customers - Allianz ranks #1
Appendix Overview - German Life 8.4m customers - Allianz ranks # 1 Key figures (IFRS) 2001 2002 2003 2004 2005 Stat. prem. (EUR bn) 9.0 9.7 10.4 10.9 12.2 Expense ratio (%) 13.7 9.4 6.8 10.4 7.0 Net income1 (EUR m) 65 62 84 223 329 Market share2 (%) 15.2 19.0 20.0 18.4 23.3 Market share3 (%) 14.4 14
Slide 66: Overview - German Health: 4.2m customers - Allianz ranks #3
Appendix Overview - German Health 4.2m customers - Allianz ranks # 3 Key figures (IFRS) 2001 2002 2003 2004 2005 Stat. prem. (EUR bn) 2.7 2.9 3.0 3.0 3.0 Expense ratio (%) 9.9 10.6 10.4 9.3 8.8 Claims ratio (%) 73.1 71.0 68.7 68.9 69.7 Combined ratio (%) 83.0 81.6 79.1 78.2 78.5 Net income1 (EUR m)
Slide 67: Products: example for service enhanced products
II. German insurance reorganization 2 Products: example for service enhanced products “Accident 60 Active” “Home emergency” ! Assistance in case of accident that leaves ! Allianz provides insurance and help for victim immobilized or in need of care - Lock and key service - Only limited protection fr
Slide 68: Investment Banking
Munich, 13 July 2006 Investment Banking Stefan Jentzsch
Slide 69: Agenda
Agenda I. Starting position/business model II. Homogenization of coverage & client targeting III. Modernization of lending business IV. Growth driver Capital Markets V. Abstract © Allianz AG 2006 C 01
Slide 70: Performance Corporate Bank - LLPs as key driver of operating result
I. Starting position/business model Performance Corporate Bank - LLPs as key driver of operating result and profit before tax Operating revenues Loan loss provisions (LLPs) Profit before tax In EUR m In EUR m In EUR m CAGR CAGR CAGR -1% -48% 21% -31 -84 +241 1,058 1,042 1,014 1,027 546 470 305 321 1
Slide 71: Performance DrKW – stagnation since 2003
I. Starting position/business model Performance DrKW – stagnation since 2003 Operating revenues Operating expenses Profit before tax In EUR m In EUR m In EUR m CAGR CAGR -2% -10% -157 -707 +769 2,259 2,151 272 2,634 210 2,045 2,102 132 1,876 1,828 1,927 -559 © Allianz AG 2006 12 M 12 M 12 M 12 M 12
Slide 72: Capital and headcount DrKW - need to be aligned to business growth
I. Starting position/business model Capital and headcount DrKW - need to be aligned to business growth Risk weighted assets Risk capital FTE1) In EUR m In EUR m CAGR CAGR CAGR +0.2% -15% -2% -289 +201 -1,363 40,326 40,527 3,484 6,233 33,823 30,736 5,658 5,849 5,944 2,236 2,121 1,927 © Allianz AG 200
Slide 73: Improvement operating performance needed
I. Starting position/business model Improvement operating performance needed … CIR - lagging behind, but impacted by RoE pre tax - underperforming the strategic legacy competition 118% 24% 20% 22% 23% 104% 92% 10% 12% 10% 87% 89% 7% 71% 72% 67% 69% 70% -15% -19% DrKW CIR DrKW RoE pre tax Average CIR
Slide 74: … to reach targets regarding key performance indicators
I. Starting position/business model … to reach targets regarding key performance indicators Capital efficiency1 150 100 Bonus/head4 CIR 50 40% 28% 0 ` 25% 21% 40% Actual 2005 Target over next 3-5 years © Allianz AG 2006 Revenues/head3 RoE pre tax2 1) Operating revenues/avg. risk capital 2) Profit be
Slide 75: Inefficiencies in setup and incentive model
I. Starting position/business model Inefficiencies in setup and incentive model … ! Structures do not follow business logic Inefficient ! Artificial split of business units structures ! Redundant functions ! Client responsibilities not clearly defined ! Actual pool based on 55% T-Comp formula1 - Man
Slide 76: … addressed along key dimensions
I. Starting position/business model … addressed along key dimensions ! Implementation of simple, functional structure ! Definition of clear-cut areas of responsibilities ! EVA based incentive system ! Initiatives to improve operating performance © Allianz AG 2006 C 08
Slide 77: New structure - functional set up with clear areas of responsibility
I. Starting position/business model New structure - functional set up with clear areas of responsibility Global Banking Capital Markets COO Fixed Financing Credit Income Invest- & Global Structured Global Asset Global Global Currencies Advisory ment Securities Distri- Finance Finance Mmgt. Equities
Slide 78: New incentive system - allow for right level of incentivization
I. Starting position/business model New incentive system - allow for right level of incentivization Objectives New bonus model General bonus pool ! EVA based incentive ! Value driven and ! Open to all permanent systems integrated bonus model employees in IB division for the whole of the IB ! Linkage
Slide 79: General bonus pool - a two step process
I. Starting position/business model General bonus pool - a two step process ! Pool based on overall result for IB division - Step 1 – ! Formula based on percentage of “residual income” Setting the - EVA pre tax and bonus overall - after divisional and functional costs IB pool - after adjusting for c
Slide 80: Initiatives to improve operating performance
I. Starting position/business model Initiatives to improve operating performance Actions Targets ! Build unified client coverage model ! Leverage of Capital Markets Homogenization know-how ! Implement sector approach across of coverage & all customer segments ! Improve client penetration client targ
Slide 81: Agenda
Agenda I. Starting position/business model II. Homogenization of coverage & client targeting III. Modernization of lending business IV. Growth driver Capital Markets V. Abstract © Allianz AG 2006 C 13
Slide 82: Current situation …
II. Homogenization of coverage & client targeting Current situation … Issues: Issues: strategy and coverage model management process ! No explicit and shared strategic ! Systematic and consistent IB customer focus wide account planning and controlling process does not ! Cross-selling potential still
Slide 83: … triggering adjustment and coordination of target customers
II. Homogenization of coverage & client targeting … triggering adjustment and coordination of target customers ! Focus on “real” IB clients with capital market potential and Clear cut IB multi product demand target clients ! Coherence regarding customer, risk, research and Capital Markets strategy P
Slide 84: Future focus on real IB clients and sector approach
II. Homogenization of coverage & client targeting Future focus on real IB clients and sector approach Investment Relationship focus Targets Banking ! Target customer lists across ! Leverage existing all segments competencies within international franchise, ! CRM’s to lead strategic offering Corporat
Slide 85: Agenda
Agenda I. Starting position/business model II. Homogenization of coverage & client targeting III. Modernization of lending business IV. Growth driver Capital Markets V. Abstract © Allianz AG 2006 C 17
Slide 86: Addressing dynamics and opportunities in lending business
III. Modernization of lending business Addressing dynamics and opportunities in lending business Issues: strategy and management Integration benefits ! Most financing products are run 1 more or less uncoordinated in silos Partly and without a common strategy uncoordinated Synergies available ! Incon
Slide 87: Clear upside potential and benefits …
III. Modernization of lending business 1 Clear upside potential and benefits … ! Implementation of consistent product strategies Bundling of all ! Usage of common IT-systems and pipeline financing activities ! Unification and simplification of processes and functions Implementation ! Shift credit re
Slide 88: ... via integration of lending activities on one common platform
III. Modernization of lending business 1 ... via integration of lending activities on one common platform Bilateral credit & Syndicated credit international products International products Leverage finance (tbd) ! Non-Euro sight deposits ! LBO incl. mezz finance (cash flow driven) ! Cross border pay
Slide 89: Roll out of Credit Asset Management for growth and efficiency
III. Modernization of lending business 2 Roll out of Credit Asset Management for growth and efficiency Coverage CAM Secondary market Transfer Manages the assets by Portfolio pricing ! risk type optimization ! industry Credit trading Client coverage Securitization and origination ! region Credit deri
Slide 90: Agenda
Agenda I. Starting position/business model II. Homogenization of coverage & client targeting III. Modernization of lending business IV. Growth driver Capital Markets V. Abstract © Allianz AG 2006 C 22
Slide 91: Focusing Capital Markets
IV. Growth driver Capital Markets Focusing Capital Markets Current status Future potential ! Missing differentiation vis-a- ! Clear-cut positioning, focus vis market and customers on core competencies ! Cross selling potential not ! Exploitation of revenue fully captured potential of client portfoli
Slide 92: Key objectives and associated initiatives - expansion of growth areas
IV. Growth driver Capital Markets Key objectives and associated initiatives - expansion of growth areas Targets Actions ! Full exploitation of cross- ! Consistently measure account executives selling potential on overall client profitability and product coverage Focus on client ! Increase in share o
Slide 93: Key objectives and associated initiatives - increase in efficiency
IV. Growth driver Capital Markets Key objectives and associated initiatives - increase in efficiency Targets Actions ! Full exploitation of ! Upgrade product knowledge of German customer potential sales force ! Strong „product ! Improve understanding of client needs to Focus on development shop“ for
Slide 94: New service concept for sales Germany - integration of SAM and S&TPS
IV. Growth driver Capital Markets New service concept for sales Germany - integration of SAM and S&TPS Criteria SAM head office Service concept ! SAM1: market related clients ! S&TPS2 regions: new service concept aligned with SAM Focused coverage ! All multinational clients in the new concept ! Sele
Slide 95: Agenda
Agenda I. Starting position/business model II. Homogenization of coverage & client targeting III. Modernization of lending business IV. Growth driver Capital Markets V. Abstract © Allianz AG 2006 C 27
Slide 96: Dresdner Kleinwort - an integral part of Dresdner Bank
V. Abstract Dresdner Kleinwort - an integral part of Dresdner Bank New business model Key figures Dresdner Kleinwort 20051 Pro forma in EUR m Operating revenues 2,647 Operating expenses 2,338 Loan loss provisions -19 Corporate Functions Operating result 327 Private & Investment Risk capital (∅, EUR
Slide 97: Strategic focus - orientation going forward
V. Abstract Strategic focus - orientation going forward Our activities are driven by customer needs, no self-interest in proprietary trading or investments Positioning as pan-European investment bank with strong focus on Germany and UK Improvement of performance and key ratios (CIR and RoE) to come
Slide 98: Appendix
Appendix Allianz @)
Slide 99: Investor Relations contacts
Investor Relations contacts Oliver Schmidt Tel. +49 (0) 89 3800-3963 Holger Klotz Tel. +49 (0) 89 3800-18124 Head of e-mail: e-mail: Investor Relations [email protected] [email protected] Susanne Arheit Tel. +49 (0) 89 3800-3324 Christian Tel. +49 (0) 89 3800-3892 Lamprecht e-mail: e
Slide 100: Financial calendar 2006/2007
Financial calendar 2006/20071 11 August 2006 Interim report first half of 2006 10 November 2006 Interim report first three quarters of 2006 22 February 2007 Financial press conference for the 2006 fiscal year 23 February 2007 Analysts’ conference for the 2006 fiscal year 02 May 2007 Annual General M
Slide 101: Disclaimer
Disclaimer These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current