Methodology redesigns

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System overhauls. Foto gebouw. Begin of another decade. In Q1 2005, KBC converged with its guardian organization Almanij: 'Fast wins' incorporated: The re-rating of the offer because of expanded corporate straightforwardness, organization perceivability and offer liquidity

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Slide 1

Procedure refreshes Foto gebouw

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Start of another decade In Q1 2005, KBC converged with its parent organization Almanij: 'Brisk wins' incorporated: The re-rating of the share because of expanded corporate straightforwardness, organization perceivability and share liquidity Operational collaborations, especially in the field of riches administration Further esteem making potential incorporates: moving the profit drift in the private saving money zone into a substantially higher rigging Clearly, KBC keeps on being aspiring and keeps up its execution duties in both Belgium and the CEE

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The main reap is in An introductory layer of 'merger advantages' has as of now showed up: The 'odd one out' has vanished (sign: at pre-merger cost of 48 € - avg. 3Q04 - a theoretical 10% markdown speaks to 4.8 €/share - add up to 1.8 bn) Today, KBC has developed to 25 bn advertise top with a ytd normal every day exchanging turnover of 47 m (speed, most recent 12 months: 50%) Share value, 31 May 05, ytd (KBC +17% versus DJES banks 4%) (Dec04 = 100) DJES Outperformance driven by solid essentials Outperformance encouraged by expanded stock perceivability and liquidity

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Operational collaborations - update In Q1 2005, w e declared operational cooperative energies in the ranges of private saving money and reserve administration of net 1.4 €/share - add up to 500 m (75 m pre-impose repeating every year, half of which starting at 2006) Type of Benefits* Source of Benefits* €m Securities €m Payments Securities Revenue (40%) Fin. Markets Corporate Insurance Asset Management Cost (60%) ICT & Overheads Cross Sales New Bus'ness Pro-cure-ment People Costs Avoided Total Optimi-zation * Synergy benefits portrayed as pinnacle repeating yearly increment in pre-charge primary concern result (top level starting at 2009)

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Operational cooperative energies - refresh In Q2 2005, bunch wide hazard administration philosophy actualized in expanded Group in the meantime, point by point usage of collaboration activities began : Agreed breakthroughs and conveyance profile for 33 ventures Transparency on execution dangers Incorporation into business & singular focuses At end of Q2 2005, 4 m in repeating cooperative energies effectively acknowledged (6% of aggregate) By end of 2005, 8 m is normal - in 2006, level will increment to 37 m

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Gevaert portfolio - refresh Gevaert is relied upon to upstream ca. 300 m trade profit out Q3 2005 (1) 30 m capital additions acknowledged in Q2 2005, excl. picks up on KBL and KBC (150 m) dispensed with in united gathering P&L (2) Position of 34.1 m offers booked in KBC's records at 17 euros/share (3) 2004 benefit commitment (42 m) rejects one-off loss of purchaser imaging (- 81 m) and amortization of goodwill (- 27 m) (4) Legal and functional twisting up and exit from ceased operations might be drawn out

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We fabricate a strong future despite everything we see a great deal of " development and esteem " in our momentum key extension: Retail-and riches administration arranged, with concentrate on Belgium and CEE-5 and chose Western-European exercises Further upgrade of productivity (with accentuation on, however not only, in CEE and European private keeping money) Standalone premise (pioneering operational unions in specific regions to create economies of scale, if necessary) Stable profit approach and strong level of monetary quality/dissolvability This viewpoint is reflected in eager budgetary targets , legitimate until 2008 In 2H 2005, we will re-evaluate our vital skylines to guarantee 'development and esteem' post-2008 ( extend "next" )

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Enhancing effectiveness - saving money Well on track to convey on ebb and flow 2005 cost/pay target (58%) Adverse effect by Group augmentation and IFRS reclassificiations - new C/I target (58%) in this way more yearning than past target (58%) Cost/pay, saving money Branch terminations in Belgium IT reconciliations FTE diminishments Impact of co-sourcing with 3 rd parties Cost reserve funds because of 'private saving money center point' Further cost cutting in CEE Bus'ss-prepare rearrangements Centralized acquisition (KBC Mergco, IFRS) (KBC Old, GAAP)

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Enhancing proficiency - protection Well on track to convey on ebb and flow 2005 joined proportion target (95%) Positive view on hidden drivers (showcase development, claims recurrence, claims expansion, and so on.), yet market is relied upon to mellow - new C/R target (95%) in this manner more goal-oriented than past target (95%) Combined proportion, non-life Optimization of inbound R/I Increased endorsing discipline in CEE Pricing discipline (hard market) Increased cost rivalry Further change in CEE KBC Mergco, IFRS KBC Old, GAAP

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Enhancing primary concern benefit Expected to surpass ebb and flow 2005 EPS development target (10% CAGR) Downward effect of IFRS reclassificiations and Group amplification Growth standpoint: our rude awakening makes us trust a 10% CAGR is reasonable in any event until 2008 - development target reconfirmed Earnings per share * CAGR target > 10% 4.49 Sound business development Strict cost administration Risks enough oversaw CAGR target +10% (KBC Mergco, IFRS) (KBC Old, GAAP) * Adjusted 2004 level subsequent to including back 210 m in erratic charges

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Securing budgetary quality Over the most recent couple of years, we remained over our base wellbeing levels and amassed overabundance capital for extra interests in CEE Minimum dissolvability levels are kept up (8% Tier-1, managing an account – incl. 15% mixture, and 200% dissolvability edge, insurance)* Solid income energy Stable profit payout extend Recovery of capital markets * under Basel I/Solvency I administrative structures

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Securing budgetary quality 1 Regulatory capital under Basel I/Solvency I, (incl. mixtures and minority interests, after disposal of intangibles and goodwill) 2 Difference between accessible capital and interior least level 3 Surplus capital excl. unfriendly IFRS affect on Tier-1 (starting at 2006), undiscovered picks up on tied-up resources and estimation of Agfa-Gevaert (timing of transfer indeterminate)

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Generating exceptional yield level Well on track to surpass current 2005 ROE target (16%) Carry-on of abundance capital for extra interests in CEE and higher capital base as indicated by IFRS - new ROE target (16% 1 ) is accordingly more eager than past target (16%) Return on value Strong income development (19% CAGR) Dividend payout of 40-45% Signifcant capital gathering Sound EPS development (>10% CAGR) Stable profit arrangement Further collection of capital (KBC Old, GAAP) (KBC Mergco, IFRS) 1 Equity excl. changes in revaluation save on AFS resources.

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Financial targets - outline By 2008 at the most recent Equity excl. change revaluation save AFS resources For 2006-2008 period

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Assessing the Romanian open door Since the biggest bank (BCR) is up for privatization now, we can't put off our perspectives on this until our new system contract is characterized in 2H05 (venture 'next') Since advancement of CEE exercises has advanced well and a quick procurement in Poland is fairly far-fetched, administration limit and capital step by step gets to be distinctly accessible for new zones of speculation from the get go, the BCR opportunity might be appealing and is in accordance with our past CEE technique: Material size (5.5 bn resources) and overwhelming business sector position (29% share) Profitable establishment Possibility to seek after twofold digit development, in light of quickly developing business sector Possibility to concentrate on retail/SME Availability of a protection operation, permitting start-up of bancassurance Progressive improvement in legitimate and political condition since EU promotion timetable is relied upon so as to comprehend the open door completely, evaluate the dangers and measure the esteem creation potential, KBC is concentrate the case

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