Post on 15-Jan-2016
description
Presentation Agoria | 18 December 2007 | 1
Getting you there.
Presentation of Fortis to Agoria
Simon van der Burg
Deputy Director External Affairs
Presentation Agoria | 18 December 2007 | 2
Contents
An introduction to Fortis– Ranking and key figures 3– Three leading businesses: Retail, MPB & Insurance 7
Vision, mission and strategy– Vision and mission 15– Fortis: raising the bar 18– Three key levers for sustained growth 17
Fortis + ABN AMRO: together a true European leader 18
Presentation Agoria | 18 December 2007 | 3
An introduction to Fortis
Impressive history in banking and insurance
− 1720: roots of MeesPierson and ASR− 1788: trading with the Russian tsarina
Catherine the Great− 1803: financing the United States’
purchase of Louisiana from Napoleon− 1889: ASLK-CGER is the first to combine
banking and insurance− 1902: Generale Bank develops in China− 1990: Fortis, first cross-border merger
To be proud of
− Strong performance driving net profit to record
EUR 4.4 billion in 2006 (+24% before divestments)− Strong position: No. 20 in Fortune Global 500,
based on revenues− Strong profitable and sustainable growth strategy− Excellent track record in insurance joint ventures− Unique cross-border network for SME and HNWI− Strong ratings and sound solvency position− One strong brand
Over 60,000 dedicated professionals
− 33% work outside Benelux region− 47% are women− 17% are part-timers− 44% have at least a bachelor degree− 77% are in banking ; 23% in insurance− Average of 4.6 training days per FTE in 2006− 40 years is the age on average
Present in more than 50 countries
− Key player in Europe (28 countries); niche player
in Asia (13 countries) and North America− More than 1,500 retail branches ; 260 credit
shops; 180 business centres & private banking
offices;
13 representative offices− Insurance sales via bank branches, brokers, tied
agents, bank alliances, affinity groups, …
Presentation Agoria | 18 December 2007 | 4
Strong growth through acquisitions & partnerships
BGL, ASR, Intertrust
Creation ofFortis
ASLK-CGER, MeesPierson,Generale Bank
CaiFor
Millenniumbcp
Mayban
Acquisition Partnership
1990 2000
1990-2006
Staff: x 3
Net profit: x 8
Market cap: x 16
Total assets: x 28
Taiping Life
Muang Thai
Divestment
Assurant
Seguros Bilbao
2005
Acquisitions Integration and consolidation
Disbank, Dryden WM, Von Essen Bank, O’Connor & Co,
Atradius Factor, OutRight, MNIH
2011
Sustainable growth strategy
Etalon Life, Cinergy M&T, Dominet, Gutingia, Cadogan, Global Finance
IDBI Fortis Life Insurance (India)
Postbank (Ireland)
KIT Fortis Investment
Management
Captive Finance,Pacific Century Insurance
CaiFor
Selected ABN AMRO activities
Presentation Agoria | 18 December 2007 | 5
0
20
40
60
80
100
120
140
160
180
50.9
Market capitalisation: Fortis no. 15 in Europe(15 October 2007, in EUR billion)H
SB
C
San
tan
der
UB
S
Uni
cred
ito
Alli
anz
RB
Sco
tland
ING
BN
P P
arib
as
Inte
sa S
an P
aolo
BB
VA
AX
A
Bar
clay
s
Cre
dit
Sui
sse
Soc
. G
énér
ale
Fo
rtis
Deu
tsch
e B
ank
HB
OS
Lloy
ds T
SB
Cré
dit
Agr
icol
e
Gen
eral
i
Presentation Agoria | 18 December 2007 | 6
Fortis: key figures (IFRS, in EUR million)
9M 2007 FY2006
Net profit before results on divestments 3,580 (-1%)* 4,351
Net profit 3,580 (-1%)* 4,351
Total income 88,449 96,602
Total assets 875,766 775,229
Assets under management 423,443 421,817
Core equity 21,403 19,532
Employees (FTE) 61,770 56,886
Return on Equity 21.5% 22.0%
Cost/income ratio (Banking) 60.5% 61.2%
Tier 1 ratio (Banking) 6.8% 7.1%
Total capital ratio (Banking) 10.8% 11.1%
Combined ratio (Insurance) 99.7% 96.1%
Share of non-Benelux net profit 18% 21%
Operating leverage:– Bank (5.9%)
2.1% – Insurance (8.7%)
(4.3%) * Change from 9M 2006
Presentation Agoria | 18 December 2007 | 7
Three leading businesses: a balanced portfolio
Insurance
Merchant & Private Banking
Retail Banking23 % *
49 %
28 %
– Market leadership in Benelux – one of Europe’s wealthiest regions• No. 2 in retail financial services and No. 1 credit card issuer• 4 million credit card holders in Benelux and Turkey
– Strong footprint in Europe: over 1,500 branches, 260 credit shops in Germany and
Poland, Post office network in Belgium and Ireland
– Strong leadership position in Benelux– Leading worldwide position in specialised sectors (top 10 in renewable energy and
in offshore oil and gas services)– Worldwide leader in trust and corporate services– Top 20 worldwide in assets under management from high net worth individuals– Leading service provider in funds administration (worldwide) and in derivatives
clearing (Europe)– Top European player in cross-border leasing and factoring
– Top 10 player in Europe– Largest insurer in Belgium: no. 1 Life, no. 2 Non-life, leading position in group life– Top 3 insurer in the Netherlands, leading market position in niche markets (travel
and leisure, funeral policies)– Leadership positions in bancassurance in Portugal, Malaysia and Luxembourg– UK’s third largest private car insurer– No. 6 life insurer in China, no. 6 in Thailand. No. 1 in Malaysia for new individual Life
* 9M 2007 Contribution to Fortis’s net profit. Excluding Other Banking and General.
Presentation Agoria | 18 December 2007 | 8
Retail Banking: successful leverage of our franchise in Europe
• Market leader• 4 M active customers• 1,072 branches /
343 agents / around 1,000 post offices
Belgium
• Top 4 (3-5% market share)
• 0,9 M active customers
• 158 branches /1,000 brokers
Netherlands
• 20% market share Individuals, 40% market share P&S
• 278 K customers
• 37 branches
Luxembourg
• 1-2% market share (niche)
• 280 K customers
• 200 sales points/branches
Poland
• 1.5 – 3.6% market share
• 700 K customers
• 226 branches
Turkey
• Active in 7 countries• #1 card issuer in
Benelux• 4 M credit cards• Focus on credit cards
and consumer loans• Distributing via credit
shops and branches
Consumer Finance
• An Post joint venture
• 1,384 post offices /~3000 post points
Ireland
• Net profit 9M 2007: € 3,580m
• Net profit contribution of Retail Banking: € 864m
Retail Banking
Net Profit Fortis
Retail Banking
23 %
• N°6 in multi-funds sales (Europe)
• EUR 131bn FuM
Fortis Investments
Presentation Agoria | 18 December 2007 | 9
Market Position Contribution to Fortis
ECAP (2006)
46%
Key Data FY 2006Profile
Merchant & Private BankingStrong client franchise, excellence in product skills
– Core client areas are Corporates (selected large and mid-sized), Institutionals and HNWIs
– Strong client franchise in the Energy, Commodities and Transportation segment
– Global Markets, Investment Banking, SFS and CFC service all client groups
– 13,000 FTEs
– Recent acquisitions include Cinergy Marketing and Trading (’06), O’Connor (’05) and Dryden Wealth Management (’05), Dreieck (’05)
– N°1 Bank in Benelux, Top 20 Private Bank Worldwide, Global Top 3 in Commodities and Top 10 in Shipping, Top 5 in US Energy
– Global Top 3 in Trust, European Top 5 in Factoring, Top 5 in pan-European Leasing
– Second largest global administrator in the hedge fund industry
Net profit (9M 2007)
49%
– Total Income: 5,246 m
– Net Profit: 2,020 m
– Assets under Administration: 131 bn
– Assets under Custody: 313 bn
– Funds under Mgmt: 79 bn
– Credit RWCs: 154 bn
– ECAP: 7,501 m
– RARORAC: 23%
(EUR)
Presentation Agoria | 18 December 2007 | 10
Leading market position Solid profit contribution to Fortis
– Fortis has significant market positions in its markets:– Market leader in Belgium– Top three player in the Netherlands– Second largest player in Luxembourg– Third largest car insurer in the UK– Largest Chinese/Foreign JV in China– Leader in bancassurance in Belgium, Portugal,
Malaysia, Thailand and China– Top three in Malaysia (Life, Non-Life and Takaful)
Net profit 100% = EUR 3,580 million (9M 2007)
49%
Insurance 28%
Retail23%
MPB
Profile/description
– Composite insurer with focus on life insurance when entering new markets
– Multi-channel distribution with strong base in broker and bancassurance
– Top 3 position in key markets and top 10 player in European Insurance market
– Rapidly and swiftly expanding internationally
– Excellent track record in operating and managing partnerships
Key financial data 2006
– Gross inflow– Life– Non-life
– Operating costs
– Net profit– Life– Non-life
– Combined ratio
– APE
EUR 17.2 billion– EUR 12.1 billion
– EUR 5.0 billion
EUR 1.3 billion
EUR 1.4 billion– EUR 924 million– EUR 496 million
96.1%
EUR 1.3 billion
InsuranceA significant and solid contributor to Fortis’ results
Presentation Agoria | 18 December 2007 | 11
Vision and mission
Our mission
Fortis provides compelling customer solutions creatively.
One of Europe’s most dynamic and sustainable financial services brands,
we deliver specialised, innovative and pragmatic customer solutions
across a network of channels and by leveraging our operational and
entrepreneurial expertise
Our vision
In a more complex yet more convergent world, innovation, speed and agility will
be as crucial as scale, track record and reach. Fortis will stand out as a
professional international financial services brand, recognised for its ability to
deliver superior and sustainable stakeholder value by constantly anticipating and
surpassing the needs of customers, investors, employees, partners and
communities wherever we do business.
Presentation Agoria | 18 December 2007 | 12
Fortis: raising the bar
The excellent results in the period 2004-06, combined with the organisational structure, allow Fortis to reconfirm and accelerate its
strategy of becoming a leading European financial services provider,
with a strong customer focus, renowned for the quality of its services, and growing in the enlarged Europe, and selectively in Asia and
North America.
It will achieve this by:
− strengthening its leadership positions
− invest in growth engines
− continue external growth
Presentation Agoria | 18 December 2007 | 13
Disciplined external growth
Strict criteria
-Strategic fit
-Financial fit
-Resource fit
expand
Invest in growth engines
- Identify core skills and expertise
-Mobilize management focus, talent and capital
-Roll outto new markets
grow
Three levers to sustain growth
Leveraging the Enhanced Operating Model perform
Strategy - Communication - Values
Controlled growth
Group resources
Finance
Risk
Investments
Ret
ail B
anki
ng
Insu
ran
ce
Mer
chan
t &
P
riva
te B
anki
ng
Presentation Agoria | 18 December 2007 | 14
Fortis + ABN AMRO: a unique opportunity…
StrategicRationale
■ Market leader in Benelux financial services, with top positions in all segments ■ Strong European platforms in asset gathering with more than EUR 500 billion Assets
under Management
Strong GrowthOpportunities
■ Steady recurrent earnings streams in wealthy Benelux home market, funding international growth
■ Strong growth engines: roll-out of proven models in Private Banking, Asset Management, Merchant Banking niches, multi-channel distribution Insurance, Consumer Finance, …
SignificantValue Creation
Potential
■ Natural fit and proven integration skills on both sides to drive annual pre-tax synergies of EUR 1.3 billion by 2010
■ Target return on investment of 11.1% by 2010
Scope
■ BU Netherlands(excl. former Dutch wholesale clients, Interbank, DMC Consumer Finance, EC remedies)
■ BU Private Clients globally
■ BU Asset Management globally
■ 33.8% of Shared Assets
Presentation Agoria | 18 December 2007 | 15
…making sum worth more than the parts
– Leading retail bank in Belgium and Luxembourg
– Leading commercial banking network serving exporting companies in Europe
– Unique private banking offering– Growing consumer finance
activities– Prominent player in the
European insurance market
– Strong and undisputed position in the commercial market in the Netherlands
– Extensive private banking network
– Solid asset management operations
– Distinctive transaction banking services
– Long and distinct heritage
Presentation Agoria | 18 December 2007 | 16
Fortis + ABN AMRO: top player in Europe set for growth
Growth Strategy Well-balanced business mix(% of FY 2006 net profit, pro forma)
Note: all data on this slide are pro forma, based on FY 2006 public information and company estimates
Retail Banking
Asset Management
Commercial Banking
MerchantBanking
Insurance
25% 16%
4%
8%
23%24%
Private Banking
Key figures
More than 10 million retail banking clients
2,500 retail branches in Europe, 145 Business Centres
Total AuM: EUR ~ 500 billion
More than 80% of banking income in Net interest income & Commissions
Continued commitment to achieve 30% of net profit from outside Benelux
More than 80,000 FTEs
2006 2008 2009
ABN Amro Stand-alone
3.8
2010
1.2
5.0
2007
FortisStand-alone
Synergies / Financing Costs
Fortis Stand-alone
>7.2
Presentation Agoria | 18 December 2007 | 17
# 1 in the Benelux
Benelux Germany France UK
GDP / Capita (EUR) 2006
32,304 27,967 29,212 31,395
Real GDP CAGR 2006-11 est
2.4% 2.2% 2.1% 2.4%
Population (milions)
27 82 60 59
Personal financial assets pool / Capita (EUR)
69,148 36,634 32,550 94,644
Unique customer access The Benelux Leader
Rich and mature markets havesignificant wealth accumulation potential
Complementary models
Serving more than 10 million customers through the Benelux’ largest network of almost 2,000 branches
High penetration of multi-channel distribution in all three countries
Strong presence in wealthiest regions of Benelux: Flanders, Luxembourg, Randstad
Undisputed leader across Benelux:
Mortgages: #1
Consumer lending: #1
Investments: #1
Savings accounts: # 1
Business lending: # 1
Similar retail segmentation(Mass Retail, Affluent/Preferred Banking, Professionals/Small Enterprises) allowing a swift replication of best practice
Performance-driven sales organizations, packaging as cornerstone of product offering
Customer centric approach (Huisbank/ Service)
Presentation Agoria | 18 December 2007 | 18
The Netherlands truly becomes a retail home market
Strong position in affluent and professionals segment
ABN AMRO second prompted brand within banks
Relatively high share of internet transactions ABN AMRO customers
3rd nationwide network of bankshops and advisory branches
Consistent historic strong rankings of ABN AMRO on list of favourite employers in NL
‘First in mind’ positioning
Strong position in consumer finance with ICS
Growth/retention of Fortis share of wallet in mass and affluent driven by sales mindset
Integrated commercial and consumer, generalist branches
Number 1 employer of 2007
Strong market penetration:
- Top 2 household penetration in Mass, Affluent
- Top 2 position in Professionals
Customer centric mindset
Strong brand
Solid internet platform
3rd branch network
Strong talent base
‘First in mind’ positioning
Joint entity
# 1 Consumer Finance (incl. cards)
# 1 Funds
# 2 Mortgages
# 2 Professionals
# 3 Savings Accounts
Top 3 player
Presentation Agoria | 18 December 2007 | 19
Creation of a leading European asset manager…
Highly profitable & sizeable
A winning combination
Leading provider ofasset management solutions
Top tier European Asset Manager
764688
583543 538
490416 405
354 326 314
FY 2006AuM
(EUR bn)
Barc-lays
Natixis DB UBS CS SGAM Fortis + ABN
BNPAM
1,092
(736)
-
(17)
236
67.4%
347
(208)
-
(3)
98
59.9%
745
(528)
-
(14)
138
70.9%
Total Revenues
Oper. Expenses
Loan Losses
Minorities
Net Profit
C/I ratio
CombinedFortis
ABN AMRO businesses
FY 2006 (EUR m) ■ True multi-product investment and structuring solutions
■ Autonomous investment centers for a broad range of asset classes
■ Each investment center with core proprietary research process designed specifically to extract alpha
■ 100% accountability aimed at motivating investment specialists to create alpha
■ Range of investment styles from traditional long only to long-short products focused on absolute return strategies
■ Common management philosophy & similar strategy■ Strong product complementarities: highly diversified
range of strongly performing products■ Firm European footprint combined with global reach &
scale■ Deep pool of talent to lead and manage the combination■ EUR 160 million synergy potential■ Access to high growth markets &
capabilities in high growth product areas
Note: all data on this slide are pro forma, based on FY 2006 public information and company estimates
CASA INGAllianz AXA
1,374
1 2 3 4 5 6 7 8 9 10 11 12
Presentation Agoria | 18 December 2007 | 20
■ ■ Hong Kong■ ■ Shanghai■ Taipei■ Seoul■ Singapore
■ Boston■ New York■ Toronto■ Chicago■ Atlanta
■ ■ Amsterdam■ Brussels■ Antwerp■ Düsseldorf■ ■ Frankfurt■ ■ London■ ■ Luxembourg■ ■ Paris■ ■ Madrid■ ■ Milan
■ Vienna■ Warsaw■ ■ Zurich■ Oslo■ Stockholm■ Helsinki■ Copenhagen■ Brno■ ■ Athens
■ ■ Jakarta
■ ■ Tokyo
■ Istanbul
■ Mumbai
■ Sydney
■ Buenos Aires■ Sao Paulo
■ Willemstad
■ St Petersburg■ Moscow■ Almaty
Fortis
ABN AMRO
… with leveraged capacities in New territories
Presentation Agoria | 18 December 2007 | 21
Top 3 European Private Bank
AuM(EUR bn)
UBS CS Fortis + ABN
DB Pictet HSBC Barc-lays
BNPP CASA
1,220
487
221189 182 176
138 130 104 88
LO-DH
1 2 3 4 5 6 7 8 9 10
Creation of a Top 3 European Private Bank…
A winning combination
One integrated international Private Bank
■ Service Provider of choice for HNW and UHNW clients
■ Dedicated, broad and differentiated service offering
■ Leading position in Benelux and relevant presence in international Private Banking centers
■ Strengthened European footprint &creation of strong growth platform in Asia
■ Similar client segmentation, service philosophy and geographical focus
■ Leverage best practices and local market strengths into the international network
Note: all data on this slide are pro-forma, based on FY 2006 public information and company estimates
Market leader in wealthy Benelux marketBenelux Germany France UK
GDP / Capita (EUR) 2006
32,304 27,967 29,212 31,395
Real GDP CAGR 2006-11 est.
2.4% 2.2% 2.1% 2.4%
Population (million)
27 82 60 59
Personal financial assets pool / Capita (EUR)
69,148 36,634 32,550 94,644
Presentation Agoria | 18 December 2007 | 22
… with a growth platform in Asia
ABN AMRO Fortis
Hong Kong Singapore
UAE
Spain Luxembourg Switzerland Germany
Netherlands Belgium France UK Italy Poland Jersey/Guernsey
Indonesia India
Curacao
Taiwan
Presentation Agoria | 18 December 2007 | 23
Getting you there.
Thank you