UniCredit German Investment Conference

Transcription

1 THE INTERNATIONAL PROPERTY SPECIALIST UniCredit German Investment Conference Munich, 23 rd 25 th September 2008

2 Business segments Major activities Aareal Bank The international property specialist Structured Property Financing Consulting / Services to the institutional housing industry International presence in 16 European countries, the US and Singapore International real estate financing in more than 25 countries Additional industry experts in hotel, shopping centre and logistics Typical deal size: > 25 mn Total back book: ~ 24 bn Market-leading European ITsystems for the management of residential and commercial property Market-leading integrated payment transaction systems Key market: Germany > 2,200 Customers ~ 7 mn units under management (in Germany) 1

3 Shareholder structure Aareal Holding Verwaltungsgesellschaft mbh 8.94% Bayerische Beamten Lebensversicherung a.g % 37.23% 8.94% Schweizerische Lebensversicherungsund Rentenanstalt 6.68% Versorgungsanstalt des Bundes und der Länder 6.06% Bankhaus Lampe KG 5.25% Deutscher Ring Beteiligungs-Holding 1.36% Condor Lebensversicherung Free float Aareal Holding Verwaltungsgesellschaft mbh 2

4 3 Structured Property Financing

5 The Aareal Bank Network New York in 16 European countries, the US and Singapore International Property Financing in more than 25 countries 4

6 Aareal Bank One of the leading international specialists in structured property financing International Presence in 16 European countries, the US and Singapore Additional industry experts in hotel, shopping centre and logistics Network of regional market experts and sector specialists In-depth know-how in local markets and special properties International experience with employees from 31 nations Typical deal size: > 25 mn Typical products, for example: single asset investment finance portfolio finance (local or crossboarder) construction finance 5

7 Development new business vs. average risk weighted assets Average risk weighted assets (BIS) bn % New business development yoy bn % H German H H International New business development qoq New business by region H bn 2,5 2,0 1,5 1,0 0,5 0,0 German % Q Q International Europe East 8% Europe South 15% Europe 15% North 17% Asia/Pacific 26% 19% Europe West North America 6

8 Total credit portfolio as at Total volume outstanding : 24.2 bn 10% 12% by region North America Asia/Pacific Other / Mixed Europe East Europe North Europe South Developments 8% 4% 17% 22% 21% 6% Germany Other Private clients (sold) Europe West (ex Ger) Logistics Hotel by property type 8% 14% Shopping Centre 18% 11% 11% 2% 12% 4% 28% 15% by product type by LTV ranges 1) > 80% 60-80% 6% Office Private clients (sold) Residential 87% Investment finance 84% < 60% 7 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

9 Exposure to special asset classes as at Asset Class Exposure Aareal Bank US Subprime and US RMBS None CDOs None ABCPs / SIVs None Exposure insured by Monoliners None ABS portfolio - of which AAA rated - of which US CMBS ~ 620 mn > 90% < 50 mn 8

10 Capital and Refinancing Position 9

11 Development Tier I ratio 9,0% 8,5% 8,0% 7,5% 8.3% Tier I ratio up 10 bp according to old BIS rules Further relief in new ratio according to Basel II regulations (KSA) 7,0% 6,5% 6,0% 7.3% 7.4% 5,5% 10 5,0% Old BIS Old BIS Standard Approach (KSA)

12 Maturity profiles Loan portfolio vs. long term liabilities (as at ) mn Strong liquidity situation: The loan portfolio maturities exceed the long term funding maturities Long term funding average maturity: 5.2 years Loan portfolio average maturity: 3.6 years Contractual repayments of the loan portfolio Long term funding volume to mature Of which: Mortgage Pfandbriefe Surplus (cumulative) 11

13 Aareal funding position Volumes issued (as at ) 4000 mn H Senior unsecured issues Mortgage Pfandbrief Issues 12

14 H1 98 H2 98 H1 99 H2 99 H1 00 H2 00 H1 01 H2 01 H1 02 H2 02 H1 03 H2 03 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 mn H1 98 H2 98 H1 99 H2 99 H1 00 H2 00 H1 01 H2 01 H1 02 H2 02 H1 03 H2 03 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 Aareal funding position Customer deposits: development by volume Term deposits Corporate Clients Insurance Companies Corporates Funds No Banks mn Term deposits Housing Industry Sight deposits Housing Industry 13

15 Summary capital and financing position Solid capital basis Total average maturity: Long term funding (excl. public sector Pfandbriefe): 5.2 years Property loan portfolio: 3.6 years Annual redemptions of long term funds about 3 bn Highly stable deposits from housing industry can be used for long term refinancing In any case, Aareal will not be forced to issue any senior unsecured funds this year 14

16 15 Consulting/Services

17 Consulting/Services Major activities Aareal Bank Consulting/Services Segment Consulting and Services for the institutional housing sector Other Services Market-leading European IT-system house for the management of residential and commercial property Key client base: Large size property owners / managers Key ERP system products: Blue Eagle based on SAP, GES, Wohndata and wodis Institutional Housing Industry Department and First Financial Solutions Market-leading integrated payment transaction systems Key client base: Large size property owners / managers and utility companies ibs Financial investment BauGrund Management of extensive property and trust assets 16

18 Services provided to the institutional housing sector Strategic Management of residential portfolios Planning, Controlling, Steering Portfolio Management Administrative Management of residential portfolios Tenant Management Flat Management Maintenance Highly automated ERP systems (e.g.: Blue Eagle based on SAP, GES, wodis) for the management of property portfolios Comprehensive range of integrated Services and Consulting Our Customers: The Institutional Housing Industry Leading IT-system house for the institutional housing industry ~75 80% customer overlap: substantial cross-selling effects with highly integrated IT solutions Integrated mass payment transaction systems Repair Refurbishments New Developments Construction Management of residential portfolios Mass payments Cash Management Creditor and Debtor Management Financial Management of residential portfolios Accounts of the integrated payment transaction system house bank for the institutional housing sector 17

19 Institutional housing sector: Integral element of group strategy 1. Customer Deposits Highly stable customer deposits without expensive branch network ~ 1.5 bn stable current account money ~ 3 bn stable term deposits 2. Earnings Stability Non-cyclical and stable group earnings contributions free of lending risk 60% market share of Aareon in Germany Long-established customer base Long-running contracts 3. Group RoE Group RoE enhancement Very low equity engagement Operating segment EBT 2007: 30 mn Operating segment EBT H1 2008: 22 mn 18

20 Performance Consulting / Services segment - operating profit by quarter 20 mn Q Q Q Q Q Q Q Q Operating profit without one-offs One-off effects

21 Institutional housing sector: Breakdown of performance targets IT-Services business Aareon Group 1) Integrated Payment Solutions Institutional Housing department / AFFS 2) 2007 mn 2008p mn 2009p mn 2010p mn 2007 mn 2008p mn 2009p mn 2010p mn Revenues Revenues Expenses Direct Expenses EBIT Gross result 3) ) Sub-group financial statements acc. to IFRS 2) Internal profit centre calculation 3) after bank overheads 20

22 21 Positioning and Targets

23 Current positioning Group Maintain conservative position in general Further concentration on exceptionally high flexibility Maintain solid capital basis Property Financing Business New business on a very selective basis Preferably Pfandbrief cover pool eligible Constant awareness of possible investment opportunities Funding Concentration on Mortgage Pfandbriefe Selective tailor made private placements Consulting/ Services Continue with established approach: no major changes necessary 22

24 Long term strategy confirmed Fundamental elements: Two segments Concentration on core competences Lean and flexible set-up High portfolio diversification Business growth and diversification strategy in Structured Property Financing Leaner set-up of back office entities Generating operating leverage: 50% portfolio growth on existing fix cost base Further diversification out of Europe in anticipation of converging market cycles within Europe Earnings growth and diversification strategy in Consulting/Services Growth of sustainable and non-cyclical earning streams free of lending risk Growth of deposit base 23

25 Financial targets 2010 operating performance *) 20 % Group net RoE bn 30 Growth average RWA (BIS) C/I Ratio Property Financing Segment % ~ 13% 8% (p) operative < 50 % < 40 % (p) (p) EBT Consulting/Services Segment mn bn 21 bn mn 30 mn (p) 24 *) Subject to the condition that financial markets come back to normality in 2009

26 25 Appendix

27 Group P&L Q Q Q Change mn mn % Net interest income ,6% Net loan loss provisions ,1% Net interest income after net loan loss provisions ,6% Net commission income ,8% Net result on hedge accounting 3-100,0% Net trading income Results from non-trading assets Results from companies accounted for at equity ,0% Results from investment properties 1-100,0% Administrative expenses ,2% Net other operating income Impairment of goodwill - Operating Profit ,4% Income taxes ,5% Consolidated net income / loss ,8% Allocation of results Consolidated net income / loss attributable to minority interests 4 4 0,0% Consolidated net income / loss attributable to shareholders of Aareal Bank AG ,3% 26

28 Segment reporting Q Quarter mn mn mn mn Quarter Quarter Quarter Quarter Quarter Quarter Net interest income Provision for loan losses Net interest income after net loan loss provisions Quarter Net commission income Net result on hedge accounting Net trading income / expenses Results from non-trading assets Results from companies accounted for at equity Results from investment properties Administrative expenses Net other operating income / expenses Impairment of goodwill Structured Property Financing Consulting/ Services Consolidation/ Reconciliation/ Other Aareal Bank Group Operating profit Income taxes Consolidated net income / loss Allocation of results Consolidated net income / loss attributable to minority interests Consolidated net income / loss attributable to shareholders of Aareal Bank AG Allocated equity Cost/income ratio in % 48,9 52,1 78,6 77,3 57,8 59,3 RoE after taxes in % 9,3 14,8 36,8 46,7 8,5 14,5 27

29 Performance Profit before tax and special effects by quarter mn Q Q Q Q Operating profit without one-offs One-off effects Q Pre tax one-off effects Q2 2008: Proceeds from Interhotel transaction : 10 mn Pre tax one-off effects Q1 2008: ABS marked-to-market effect: -16 mn Pre tax one-off effects Q4 2007: Bond marked-to-market effect: -16 mn Goodwill impairment BauGrund: -2 mn Pre tax one-off effects Q3 2007: Proceeds from Interhotel transaction: 63 mn Proceeds from Immoscout transaction: 153 mn Bond marked-to-market effect: -15 mn Special expenses (compensation payments, preparation of legacy portfolio sale): -12 mn Pre tax one-off effects Q2 2007: Further proceeds from sale of Asset Management activities: 6 mn Proceeds from Interhotel transaction: 2 mn ImmoScout dividend: 5 mn

30 Performance Stable administrative expenses 120 mn Q Q Q Q Q Q Q Q Q Admin expenses

31 German credit portfolio as at Total volume outstanding : 6.6 bn by region by property type Berlin East 22% 25% 53% West Shopping Center Hotel Logistics Office 6% 8% 5% 6% 10% 23% Other 42% Residential Private client portfolio (sold) Developments by product type 1% 7% Other 60-80% by LTV ranges 1) > 80% 10% 14% 92% Investment finance 76% < 60% 30 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

32 Western Europe (ex Ger) credit portfolio as at Total volume outstanding : 5.0 bn Switzerland/ Austria BeNeLux Other Developments 28% by region 10% by product type 11% 29% 2% 33% UK France Retail / Shopping Center Logistics by property type 17% Hotel 11% 8% 19% 2% 13% Other 45% by LTV ranges 1) Office 60-80% > 80% 87% Investment finance 85% < 60% 31 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

33 Southern Europe credit portfolio as at Total volume outstanding : 4.2 bn by region by property type Spain 26% Logistics & Other Residential portfolios 7% 13% 35% Office Italy Hotel 9% Other Developments by product type 4% 23% 74% Retail / Shopping Center 36% by LTV ranges 1) 60-80% > 80% 8% 1% 73% Investment finance 91% < 60% 32 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

34 Northern Europe credit portfolio as at Total volume outstanding : 3.0 bn Denmark Norway 18% by region 4% Hotel Residential portfolios by property type 7% 7% 8% Other 35% Office Finland 24% 54% Sweden Logistics 14% 29% Retail / Shopping Center Other Developments by product type 5% 6% 60-80% by LTV ranges 1) 5% 14% > 80% 89% Investment finance 81% < 60% 33 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

35 Eastern Europe credit portfolio as at Total volume outstanding : 2.5 bn Estonia Czech Republic 22% by region 1% 26% Poland Logistics Retail / Shopping Center by property type 23% 0% 6% 40% Other Office Russia 25% 26% Turkey Hotel 31% Developments by product type 3% by LTV ranges 1) 60-80% > 80% 10% 1% 97% Investment finance 89% < 60% 34 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

36 North America credit portfolio as at Total volume outstanding : 1.9 bn Canada Mexico 19% by region 7% 74% USA Resid. portfolios Retail / Shopping Center by property type 26% 11% 2% 27% Other 34% Office Hotel Other Developments by product type 18% 6% by LTV ranges 1) 60-80% > 80% 1% 9% 76% Investment finance 90% < 60% 35 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

37 Asia/Pacific credit portfolio as at Total volume outstanding : 1.0 bn Singapur Japan 9% by region 4% 8% Maldives Logistics/Mixed Hotel by property type 9% 12% 79% China & Macau Retail / Shopping Center 15% 64% Office by product type by LTV ranges 1) Developments 5% > 80% 60-80% 14% 6% 95% Investment finance 80% < 60% 36 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

38 Spain credit portfolio as at Total volume outstanding : 1.1 bn by property type by LTV ranges 1) Residential Office Logistics 1%1% 3% 4% Hotel 15% Others > 80% 60-80% 6% 0% 76% Retail / Shopping Centre 94% < 60% 37 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

39 UK credit portfolio as at Total volume outstanding : 1.4 bn by property type by LTV ranges 1) Residential Others > 80% Logistics 11% 0% 7% Office 60-80% 18% 2% 40% Retail / Shopping Centre 16% 26% Hotel 80% < 60% 38 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

40 US portfolio as at Total volume outstanding : 1.4 bn by property type by LTV ranges 1) Residential portfolios Others 13% 2% Retail / Shopping Centre 60-80% > 80% 8% 0% 36% Hotel 20% 29% Office 92% < 60% 39 1) Mortgage collateralised business only; value does not take into account any collateral other than mortgages

41 40 Definitions and Contacts

42 Definitions Property Financing Portfolio Payed-out financings on balance sheet Incl. remaining property loans on DEPFA books New Business Newly acquired business incl. renewals (excl. interest rate prolongations) Contract is signed by costumer Fixed loan value and margin Net RoE = Group net income after minorities Allocated (average) equity Allocated Equity Average of: Equity minus minorities and revaluation surplus (start of period less dividends) and Equity minus minorities and revaluation surplus (end of period less expected dividends) CIR = Admin expenses + other operating expenses Net income Net Income net interest income +net commission income + net result from hedge accounting + net trading income + results from non-trading assets + results from investments accounted for at equity + results from investment properties + other operating income 41

43 Contact Jürgen Junginger Managing Director Head of Investor Relations Phone: Alexandra Beust Director Investor Relations Phone: Nicole Schüttforth Investor Relations Phone:

44 Disclaimer 2008 Aareal Bank AG. All rights reserved. This document has been prepared by Aareal Bank AG, exclusively for the purposes of a [corporate] presentation by Aareal Bank AG. The presentation is intended for professional and institutional customers only. It must not be modified or disclosed to third parties without the explicit permission of Aareal Bank AG. Any persons who may come into possession of this information and these documents must inform themselves of the relevant legal provisions applicable to the receipt and disclosure of such information, and must comply with such provisions. This presentation may not be distributed in or into any jurisdiction where such distribution would be restricted by law. This presentation is provided for general information purposes only. It does not constitute an offer to enter into a contract on the provision of advisory services or an offer to purchase securities. As far as this presentation contains information not provided by Aareal Bank AG nor established on its behalf, this information has merely been compiled from reliable sources without specific verification. Therefore, Aareal Bank AG does not give any warranty, and makes no representation as to the completeness or correctness of any information or opinion contained herein. Aareal Bank AG 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. This presentation may contain forward-looking statements of future expectations and other forward-looking statements or trend information that are based on current plans, views and/or assumptions and subject to known and unknown risks and uncertainties, most of them being difficult to predict and generally beyond Aareal Bank AG s control. This could lead to material differences between the actual future results, performance and/or events and those expressed or implied by such statements. Aareal Bank AG assumes no obligation to update any forward-looking statement or any other information contained herein. 43