Allianz SE · XETR:ALV
Allianz — Non-Deal Roadshow (October 2004)
19 slides from Allianz's roadshow presentation, October 2004
Slide 1: One year later
Michael Diekmann One year later Roadshow USA October 2004
Slide 2: Market perception of Allianz beginning of the year
Michael Diekmann: One year later Market perception of Allianz beginning of the year Analysts’ and investors’ view January 20041 Threats Demands § High equity exposure § Focus on profitability § Turnaround Dresdner Bank § Focus on shareholder value § Life profitability § Capital discipline 0410_OS_Ro
Slide 3: Framework for all activities is the "3 + one" program
Michael Diekmann: One year later Framework for all activities is the “3 + one” program Back to basics 1 Protect and enhance capital base 2 Substantially strengthen operating profitability 3 Reduce complexity Building the future 0410_OS_RoadShow_ML2004_shortVersion + one Increase sustainable competit
Slide 4: Capital position significantly strengthened
Michael Diekmann: One year later Capital position significantly strengthened 1 „3 + one“ program Comments / Outlook Asset -8.3%-p Targets: allocation equity ratio 22.9 16.5 14.6 § Further optimization of (in %) risk-return profile § Reduction of equity +2.2% gearing to 1.03 from 1.2 SH equity 28.7 2
Slide 5: P/C turnarounds almost completed - GPW growth continued
Michael Diekmann: One year later P/C turnarounds almost completed - GPW growth 2 continued focus on strategic challenges Claims ratio Expense ratio Fireman’s Fund1 4 Allianz Global Risks2 4 AGF3 Target 04: combined ratio <100% +13.6% +3.4% +11.6% -10.9% +9.5% +8.4% +2.8% 128.6 -2.4% 126.3 112.3 99.4
Slide 6: Dresdner Bank – turnaround taking effect
Michael Diekmann: One year later Dresdner Bank – turnaround taking effect 2 Income and costs1 (half-years, EUR bn) Operating result1 (half-years, EUR m) Operating income Administrative expenses + risk costs 409 6.000 400 5.500 200 5.000 4.500 0 4.000 3.302 -200 0410_OS_RoadShow_ML2004_shortVersion 3
Slide 7: Cost base lowered in all segments
Michael Diekmann: One year later Cost base lowered in all segments ... 2 „3 + one“ program Comments / Outlook -26.4% Targets: 8,097 AM 872 6,647 § Maintain strict cost 601 5,957 3,827 560 discipline Expenses Bank (in EUR m) 3,023 2,749 § Utilize cross-border L/H 920 synergy and know-how 851 769 pote
Slide 8: ... and quality of earnings substantially improved
Michael Diekmann: One year later ... and quality of earnings substantially improved 2 Total revenues RAC Operating profit Net income (EUR bn) (EUR bn) (EUR m) (EUR m) 3,135 47.2 49.5 49.5 43.5 2,178 1,542 37.3 34.1 1,289 974 146 1H 02 1H 03 1H 04 1H 02 12M 02 1H 03 1H 04 1H 02 1H 03 1H 04 1H 02 1H 0
Slide 9: Ongoing streamlining of organization
Michael Diekmann: One year later Ongoing streamlining of organization 3 Since 2003 § 32 deals Divestments § Approx. EUR 2.3bn deal volume § Approx. EUR 1.1bn risk capital release E.g. IRU: Loan volume1 (EUR bn) RAC (EUR bn) Sale/run-off of non-strategic 24.6 -59% 3.2 -53% and non- 10.1 1.5 performin
Slide 10: Capital allocation: clear enhancement of Allianz portfolio
Michael Diekmann: One year later + Capital allocation: clear enhancement one of Allianz portfolio 1H 2004, in % of risk-adjusted capital Revenue Strategic Growers Value Growers Outperformers growth -5%-p -13%-p +10%-p 33% 25% 35% 5% 0.2% 20% 2003 1H 2004 2003 1H 2004 2003 1H 2004 0% 8.15% 15% Underp
Slide 11: Profitable growth: optimized capital allocation through Allianz dividend model
Michael Diekmann: One year later + Profitable growth: optimized capital allocation one through Allianz dividend model Dividends paid by OEs bef. min. (EUR bn1) § Cash dividend model with cost of capital +61% being hurdle rate > 2.9 § Management tool to achieve economic discipline on group level 2.5
Slide 12: Profitable growth: well managed growth engine AZ Life
Michael Diekmann: One year later + Profitable growth: well managed growth engine AZ Life one Comments Variable annuities Fixed annuities +22% § Target: balanced portfolio Statutory +233% between fixed and variable premiums 4.5 4.8 annuities (USD bn) 2.9 0.6 3.4 1.1 2.0 2.8 2.3 § Clear focus on prici
Slide 13: Profitable growth: retirement savings law increases potential for Allianz Leben
Michael Diekmann: One year later + Profitable growth: retirement savings law one increases potential for Allianz Leben1 State-aided products on top of Tax incentivized amounts Allianz Leben state pensions (EUR) § Pillar II ~4,300 § No. 1 in Germany - Company pensions 2,472 § 15% overall market share
Slide 14: Profitable growth: agents selling banking products
Michael Diekmann: One year later + Profitable growth: next integration step - one agents selling banking products Distribution model Benefits Selected 300.000 Customer standardized products new clients § One-stop shopping in 2005 - Current accounts § Convenient access to banking - Money market servi
Slide 15: Going forward
Michael Diekmann: One year later Going forward Management focus Deliverables for 2005 § Capital optimization § P/C: combined ratio < 97% § Strengthening of proprietary distribution § L/H: operating profit EUR 1.5bn § Customer market share § AM: operating profit EUR 1.0bn1 § Cost and underwriting dis
Slide 16: Additional information
Michael Diekmann: One year later Michael Diekmann Additional information
Slide 17: Retirement savings Germany: shift to deferred taxation
Michael Diekmann: One year later + Retirement savings Germany: shift to deferred taxation one should result in higher savings volumes State pensions Company pensions Private pensions What is new Contributions will be tax deductible - Proceeds hereof will be taxable in 2005? What is § All contributio
Slide 18: Traditional German life contracts: attractive also in new environment
Michael Diekmann: One year later + Traditional German life contracts: one attractive also in new environment Contracts signed until 2004 Contracts signed starting 2005 Pay-in phase Limited tax deductibility1 No tax deductibility Client can opt Client can opt At maturity Lump sum Lump sum Annuity Ann
Slide 19: Disclaimer
Michael Diekmann: One year later 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 a