Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2003)
18 slides from Commerzbank's investor day presentation, Sep 10, 2003
Slide 1: Investors' Day 2003 Financials: Facts & Figures
Investors’ Day 2003 Financials: Facts & Figures Dr. Eric Strutz Chief Financial Officer Glashütten/Taunus, September 10, 2003
Slide 2: Five levers for Commerzbank to regain its financial strength
Investors‘ Day September 10, 2003 1 Five levers for Commerzbank to regain its financial strength 1 Improving profitability Identifying loss pools/divestment of 2 non-strategic investments 3 Reducing the cost base 4 Strengthening the capital base 5 Implementing state-of-the-art steering tools
Slide 3: Commerzbank's financial strengthening program is well on track
Investors‘ Day September 10, 2003 2 Commerzbank’s financial strengthening program is well on track Goals 1 Improved § Back in the black through strengthened operating business - Retail banking and markets divisions with strongest profit profitability improvement 2 § Non-strategic investments stronge
Slide 4: Commerzbank back in black figures
1 Improved profitability Investors‘ Day September 10, 2003 3 Commerzbank back in black figures 1) Operating profit in m€ 2002 2003 €m 181 194 172 54 -75 -215 QI Q II Q III Q IV QI Q II 1) Profit from ordinary activities before restructuring expenses and regular amortization of goodwill 2) Please not
Slide 5: Profitability drivers in first half 2003: Cost reduction and trading profit
1 Improved profitability Investors‘ Day September 10, 2003 4 Profitability drivers in first half 2003: Cost reduction and trading profit €m å 1.833 å 1.670 å 1.590 å 1.328 å 1.603 å 1.638 1) Other 72 Trading profit 313 151 147 98 104 332 69 278 36 231 91 Net interest income 873 861 721 678 705 746 N
Slide 6: Segment reporting: All divisions have recovered in first half '03
1 Improved profitability Investors‘ Day September 10, 2003 5 Segment reporting: All divisions have recovered in first half ‘03 Operating profit in €m Retail Banking Asset Management Securities 200 200 200 84 100 37 33 100 31 100 45 4 9 3 17 15 16 15 17 0 0 0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 1Q02 2Q02 3
Slide 7: Statement of comprehensive income
1 Improved profitability Investors‘ Day September 10, 2003 6 Statement of comprehensive income Comprehensive income 01.01. - 30.06.03 was € 451m €m -320 511 320 451 -133 131 73 Cash Flow Unrealized Net profit Hedges Unrealized gains on Foreign including secured by losses Comprehensive Net income sec
Slide 8: Others and Consolidation: Clean-up process has started
2 Identified loss pools/divestment of non-strategic investments Investors‘ Day September 10, 2003 7 Others and Consolidation: Clean-up process has started 01-06 / 2002 01-06 / 2003 Circa 2/3 of negative revenues are caused by corporate investments Continuous divestments will further Revenues -239 -1
Slide 9: Fair Value of Commerzbank's interests
2 Identified loss pools/divestment of non-strategic investments Investors‘ Day September 10, 2003 8 Fair Value of Commerzbank's interests Selected banks and insurance companies Selected industrial participations Σ 100% 78% 48% 59% 60% Σ 100% 83% 52% 55% 66% 1,200 €m €m 1,000 600 800 400 600 400 200
Slide 10: Revaluation reserve moving closer to zero mark
2 Identified loss pools/divestment of non-strategic investments Investors‘ Day September 10, 2003 9 Revaluation reserve moving closer to zero mark €m 307 189 -258 -769 -640 -1,100 -1,282 December March June September December March June 2001 2002 2003
Slide 11: Divestments in 2003
2 Identified loss pools/divestment of non-strategic investments Investors‘ Day September 10, 2003 10 Divestments in 2003 Erste Bank KEB Deutsche Börse (planned) Crédit Agricole Quarter I II III IV Buderus
Slide 12: Effects of the KEB Transaction
2 Identified loss pools/divestment of non-strategic investments Investors‘ Day September 10, 2003 11 Effects of the KEB Transaction Facts of the KEB transaction Consequences for Commerzbank at closing Private equity investor Lone Star will acquire 51% majority in Divestment of non-strategic asset KE
Slide 13: Cost cutting initiative: Highly successful implementation
3 Reduced cost base Investors‘ Day September 10, 2003 12 Cost cutting initiative: Highly successful implementation 03’ targets in headcount reduction expected to be slightly overachieved 2000 - 2003 FTE reduction 2003 Operating expenses in €m headcount Target 1,624 (2.721) 1,479 1,459 1,487 400 2003
Slide 14: Tier I ratio significantly improved; Liquidity ratio comfortable
4 Strengthened capital base Investors‘ Day September 10, 2003 13 Tier I ratio significantly improved Liquidity ratio comfortable Capital Base Liquidity Ratio (Commerzbank AG) Tier I target: GS II-Target: 7,0% 1,08-1,12 Tier I (BIS) Total Capital (BIS) 12.9% 12.3% 12.5% 11.5% 10.3% 10.3% 10.5% 1.27 7
Slide 15: Professional Financial Controlling and Value Management: New tools for steering the bank
5 State-of-the-art steering tools Investors‘ Day September 10, 2003 14 Professional Financial Controlling and Value Management: New tools for steering the bank Value Management Risk- adjusted Value Value Sensitivity Value performance management driver monitor monitor measurement matrix analysis Jun.
Slide 16: Value Management within Commerzbank
5 State-of-the-art steering tools Investors‘ Day September 10, 2003 15 Value Management within Commerzbank Performance Portfolio Measurement Management Sensitivity Business Unit Analysis A Value Fee Income Value Developer Value Creator Monitoring B Sensitivity EUR per share C D Fee Income effect E p
Slide 17: The road ahead
Investors‘ Day September 10, 2003 16 The road ahead 1 Improved profitability 2 Identified loss pools § has covered for worst case scenario 3 Reduced cost base § is well positioned - to benefit from the expected economic 4 recovery Strengthened - to exploit internal and external capital base growth o
Slide 18: Investors‘ Day September 10, 2003
Investors‘ Day September 10, 2003 17