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Commerzbank Investors’ Day 2004
Commerzbank’s Positioning:Where are we now – where are we going?
Klaus-Peter MüllerChief Executive Officer
FrankfurtSeptember 22
Chart Chart Chart Chart 1111
Group strategy and controlling (ZKE)
Commerzbank 2004: a better bank
� Significant progress of German banking, though performance remains sub-Europeanas well as dependent on overall German economic situation
� Strongest H1 since 2000; sound cushion for traditionally weaker H2� Core businesses with improvements:
- Retail: significant progress and peer-class profitability- Asset Management: successfully implemented “shrink to grow”, earnings accretive- Corporate: improvement in margins and risk, conservative provisioning- Securities: volatile, rightsizing analysis underway- Continued disposals of non-strategic interests- Overall: conscious cost discipline
� Sustained profit improvement will also be passed on through dividend� We want to close the gap between present book value (ca. €18) and present share price!
Chart Chart Chart Chart 2222
Group strategy and controlling (ZKE)
* H1 03 net of Norisbank, Bankhaus BethmannMaffei, Bank v. Ernst** RoE post-tax, annualized, calculation based on financial equity
Commerzbank´s H1 compares well with German competitors...
RoE H1 2004**
*Commerzbank HVB Deutsche Bank Dresdner Bank Commerzbank HVB Deutsche Bank Dresdner Bank
26.0%
13.7%
24.3%
8.5%10.4%
3.1%
11.7%
5.2%
Pre-tax result on total income H1 2004
202 165
1,325
-444
797 535
2,722
272
Commerzbank HVB Deutsche Bank
Change in operating profitH1 04 vs. 03 in € m
+295% +224% +105%
*H1 03 H1 04 H1 03 H1 04
Dresdner BankH1 03 H1 04H1 03 H1 04
*
Chart Chart Chart Chart 3333
Group strategy and controlling (ZKE)
D
Lloyds TSB
UBS
ABN AmroSociété Générale
BNP ParibasBarclays PLC
Credit Suisse Group
HSBC
HypoVereinsbank
Commerzbank
Deutsche Bank
SCH
BBVA
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0% 5% 10% 15% 20% 25% 30%
...however, German banks remain sub-Europeanin profitability and revenue momentum
pric
e to
boo
k H
1 20
04
RoE 2004e*
80%
90%
100%
110%
120%
130%
140%
150%
Q1/2003 Q2/2003 Q3/2003 Q4/2003 Q1/2004 Q2/2004
European banks
German banks
Constant currencies
* RoE calculation based on financial equity (note: different accounting standards)
** Operating income: net interest income after change net LLP’s + net commission income + hedge result + trading profit
Development of operating income**European banks: RoE vs. price to book*
Chart Chart Chart Chart 4444
Group strategy and controlling (ZKE)
2000
2500
3000
3500
2000 2001 2002 2003 20040
1000
2000
3000
4000
5000
6000
7000
8000
1000
1500
2000
2000 2001 2002 2003 20040.0%
1.0%
2.0%
3.0%
4.0%
5.0%
H1 operating income* vs. DAX at mid-year
inte
rest
inco
me
€ m
Eonia
H1 net interest income before provisioning vs. Eonia
* Net interest income before provisioning, net commission income, trading profit
oper
atin
g in
com
e €
m
DA
X
Eonia
DAX
Commerzbank is also dependent on macroeconomic factors…
Chart Chart Chart Chart 5555
Group strategy and controlling (ZKE)
...similar to the other German banks
* Indexed net interest income before provisioning + net commission income + trading profit + hedge result. Adjusted for major disposals (CB: deconsolidation Rheinhyp; DB: deconsolidation Eurohypo; HVB: sale of norisbank, Bank von Ernst, BethmannMaffei, Hypo Real Estate)
7000
8000
6000
5000
4000
3000
DAX
60%
70%
80%
90%
100%
110%
2000 2001 2002 2003 2004
Commerzbank Deutsche Bank HVB Dresdner Bank
DAX
Operating income* vs DAX
2000
Chart Chart Chart Chart 6666
Group strategy and controlling (ZKE)
-329 -562 -555 -452
600 602417
509 445
-256
-2,470-2,909 -2,706
-2,320 -2,232
1,5231,696 1,834 1,734 1,451
1,423 1,216 1,1291,036 1,154
245
93 206223 400
H1 2000 H1 2001 H1 2002 H1 2003 H1 2004
Despite worsened markets and refinancing conditions: best half since 2000…
838Operating profit 3662356201,086 € m
Total lending (€ m) 240,172 251,695 231,805 165,641 163,807DAX 6,898 6,058 4,383 3,221 4,053Rating Moody’s AA3 AA3 A1 A2 A2
S&P AA- A+ A A- A-Fitch AA- A+ A A- A-
Operating expenses
Loan-loss provisions
Net interest income
Net commission income
Other incomeTrading profit
*
*) adjusted by €856m generated by comdirect IPO
Indexed:Total lendingDAX
Chart Chart Chart Chart 7777
Group strategy and controlling (ZKE)
…but bear in mind: H1 traditionally stronger than H2
20%
25%
30%
Q1 Q2 Q3 Q4
Average 1998-2003, (without 2000)
Net interest income per quarter in % of total annual net interest1998-2003
1998
1999
2000
2001
2002
2003
Chart Chart Chart Chart 8888
Group strategy and controlling (ZKE)
We are reducing risk, restoring financial strength…
148141149150155160178199205146
6,77,3 7,4 7,7 7,8 7,3 7,1 7,05,96,0
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
RWA, in € bn Tier I ratio, in %
Target7%
…and improving earnings…
18154
172 194101 92
435 403
32-75
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
Operating profit€ m
Chart Chart Chart Chart 9999
Group strategy and controlling (ZKE)
+106
+61
+22
+11
Retail
AssetManagement
CorporateBanking
Securities
…with all core segments contributing positively
Operating profit € m
7362
283261
9231
223117
H1 2003 H1 2004
Chart Chart Chart Chart 10101010
Group strategy and controlling (ZKE)
Retail: significant progress and peer-class profitability
€m
Share of equity tied up in Group
18%
1% 1%
16% 16%
22%
9%7%
3%
18%
28%
1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04
Operative RoE CIR in operating business
72.2%80.1%
H1 03 H1 04
Asset Management: operating profit tripled- successfully restructured, earnings accretive -
Operative RoE34.0%
9.3%
H1 03 H1 04
CIR in operating business
63.1%
84.8%
H1 03 H1 04
Share of equity tied up in Group
5%
German average: 15%
European average: 26%
Chart Chart Chart Chart 11111111
Group strategy and controlling (ZKE)
Corporate Banking & Institutions: improvement beginning in 2004, progress closely monitored
Operative RoE CIR in operating business
9.8% 11.8%
H1 03 H1 04
45.6% 49.4%
H1 03 H1 04
Share of equity tiedup in Group
47%
Securities: volatile - analysis for rightsizing underway
Operative RoE
12.1% 12.1%
H1 03 H1 04
154
312
201
124
226232
5070
170
210
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04
Volatile securities trading income€m
Share of equity tiedup in Group
12%
Chart Chart Chart Chart 12121212
Group strategy and controlling (ZKE)
All led to share price holding up comparatively wellIndexed share price development January 2002 to 17 September, 2004
Commerzbank
Deutsche Bank
DAX
HypoVereinbank
Allianz
Münchener Rück
0%
20%
40%
60%
80%
100%
120%
140%
Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04
-15%
-25%
-27%
-46%
-64%
-71%
Chart Chart Chart Chart 13131313
Group strategy and controlling (ZKE)
Where are we now – where are we going?2002 2003 2004 2005
�Management changes implemented�Costs cut rigidly�Risk-weighted assets reduced�Liquidity prudently managed�Capital base strengthened
����Restored: Corporate financial strengthRestored: Corporate financial strengthRestored: Corporate financial strengthRestored: Corporate financial strength
�Retail: profitability restored – play to win�AM: successfully restructured – shrink to grow�Corporate Bank: move to the top – kicked off�More core participations sold, SchmidtBank bought�Costs cut further�Risk profile reduced
����Regained: Improved Core BusinessesRegained: Improved Core BusinessesRegained: Improved Core BusinessesRegained: Improved Core Businesses
���� progressing: Stability and Balanced growthprogressing: Stability and Balanced growthprogressing: Stability and Balanced growthprogressing: Stability and Balanced growth
Retail: product/customer initiatives – grow to winCorp.Bk: margin/customer growth – move to the topSecurities: reduce volatility through rightsizingImprove capital deploymentContinue to improve risk/return profileMaintain cost control/realize productivity gainsContinue to sell participationsString of pearls acquisitions / expand CEE
For more information, please contact:Commerzbank Investor Relations
Tel. +49 (69) 136 22 33 8
Chart Chart Chart Chart 15151515
Group strategy and controlling (ZKE)
Chart 18Chart 18Chart 18Chart 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 representations orguarantees are made by Commerzbank Group with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation./Commerzbank AG and/or its subsidiaries and/or affiliates (herein described as Commerzbank Group) may use the information in this presentation prior to its publication to its customers. Commerzbank Group or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Commerzbank Group may also provide banking or other advisory services to interested parties./Commerzbank Group accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation./ Copies of this document are available upon request or can be downloaded from www.commerzbank.com/aktionaere/index.html.