Acquisition of Dresdner Bank as per January 12, 2009 · 2016-11-21 · Commerzbank AG Investor...

Commerzbank AG ‌ Investor Relations ‌‌‌ 27.03.2009

Acquisition of Dresdner Bank as per January 12, 2009Purchase Price Allocation (PPA), Pro-Forma accounts 2008,

Tier-1 ratio Commerzbank New and impact of SoFFin on profit & loss account and balance sheet

1Commerzbank AG ‌ Investor Relations ‌‌‌ 27.03.2009

Agenda

Tier-1 ratio Commerzbank New3.

4.

2.

1.

Impact of SoFFin on profit & loss account and balance sheet

Pro-Forma accounts 2008

Acquisition of Dresdner Bank – Purchase Price Allocation


Acquisition of Dresdner Bank as per January 12, 2009Pro-forma accounts 2008 incl. Purchase Price Allocation (PPA)

Purchase Price Allocation (PPA)

– IFRS 3 procedure and status PPA

– PPA impact on Dresdner Bank




In the IFRS-revaluation accounts of Dresdner Bank:all assets and liabilities are to be newly valued at their fair value,all contingent liabilities not included in the balance sheet up to now are to be reported at fair value,all intangible assets not included in the balance sheet up to now are to bereported at fair value,on all adjustments deferred taxes on the assets as well as the liabilities side will becalculated.

Consequence:As a result, unrealised losses and reserves of the acquired company will be madetransparent (so called “Purchase Price Allocation“ (PPA)).The figures can be based on estimates and can be adjusted for a period of up to twelvemonths. The differing amount / goodwill can therefore change up until the 2009 year end accounts.


Purchase Price Allocation (PPA)Acquisition of Dresdner Bank as per January 12, 2009

118,885-209119,094Claims on customers incl. LLPs

872872Positive fair values attributable to derivative hedging instruments

189,845189,845Assets held for trading purposes

23,58013223,448Financial investments

1,006668338Intangible assets

998-731,071Fixed assets

962-2964Tax assets

1,9771,977Other assets

420,766530420,236TOTAL

ASSETS

18,64218,642Cash reserve

63,9991463,985Claims on banks

Assetsincl. PPA

PPA effectsTotal

Assets12. Jan 09(€ m)


Purchase Price Allocation (PPA) Acquisition of Dresdner Bank as per January 12, 2009

3,8761,6252,251Capital of Commerzbank

4,024-6114,635Subordinated capital

1,293-1,4942,787Hybrid capital

5,6121,6253,987Equity

25,445-5425,499Securitized liabilities

6969Negative fair values attributable to derivative hedging instruments

164,823164,823Liabilities from trading activities

781796-15Pension provisions

1,8041991,605Other provisions

1,235493742Tax liabilities

5,7065,706Other liabilities

1,7361,736Minority interests

420,766530420,236TOTAL

Liabilities and equity

66,746-4066,786Liabilities to banks

143,228-384143,612Liabilities to customers

Liabilitiesincl. PPA

PPA effectsTOTAL

Liabilities12. Jan 09(€ m)


Purchase Price Allocation (PPA)Acquisition of Dresdner Bank as per January 12, 2009

-332Other and deferred tax

3,876As per Jan 12, 2009 after PPA

770Customers / Brand

-73Fixed assets / real estate

-796Pensions

-332Legal and Tax risks

Summary of the effects on equity capital:

2,251As per January 12, 2009

2,388Interest rate spreads

(€ m)

€ 0.8bn= Goodwill*

€ 3.9bnMinus acquired equity capital

*) as of March 18, 2009

€ 4.7bnPurchase price


Agenda


4.

2.

1.






Balance sheet / income statement of Commerzbank and Dresdner Bank provide the basis

Pro-forma reconciliation:

– Consolidation of Schiffsbank

– Sale of cominvest-companies by Commerzbank*

– Sale of Oldenburgische Landesbank (OLB) and the „CDO Portfolio“ to Allianz byDresdner Bank*

– PPA effects transferred into previous year on a 1:1 basis

– significant consolidations between CoBa and DreBa

Pro-forma accounts as a previous year comparison for the new Commerzbank

* no profit from reinvestment assumed


1,045,579

14,736

2,257

3,085

152,521

301,420

10,708

416,154

122,685

22,013

CB Groupnew pro-

forma

+€0.3bn Schiffsbank, -€0.4bn deconsolidationof cominvest-1863,19911,723Other assets incl. tax assets

+€12.3bn Schiffsbank and intercompanyelimination10,517120,822284,815Claims on customers

+€0.4bn Schiffsbank, -€1.1bn intercompanyelimination-69287210,528Positive fair values attributable to

derivative hedging instruments*

-578

-54

1,411

1,628

-6,995

-3,012

-3,195

Reconciliationeffects pro-

forma

+€0.5bn Schiffsbank, -€7.5bn intercompanyelimination189,845118,569Assets held for trading purposes

+€2.3bn Schiffsbank, -€0.6bn elimination of Schiffsbank within the capital consolidation23,443127,450Financial investments

+€0.8bn client relationship & brand, +0.8bn Goodwill Dresdner 3381,336Intangible assets

-€129m PPA1,0711,240Fixed assets

420,961625,196TOTAL

Assets

Payment of cash component Dresdner18,6426,566Cash reserve+€1.2bn Schiffsbank, -€4.6bn intercompany

elimination62,72962,969Claims on banks

Notes (i.a.)Dresdner Bank Group**

Commerz-bank Group(€ m)

* Non-trading assets

Pro-forma accounts 2008 incl. Purchase Price Allocation (PPA)

** not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification


+€160m Schiffsbank2,5521601,736657Minority interests+€0.7bn capital increase (contribution in kind),

+€1.2bn PPA, -€4.0bn capital consolidationDresdner, +€0.4bn capital gain cominvest

20,266-1,7392,75919,247Others

1,045,579

22,818

4,512

16,337

13,241

4,650

256,523

20,549

192,105

319,917

194,927

CB Groupnew pro-

forma

+€0.1bn Schiffsbank, -€1.4bn PPA-1,3812,7353,158Hybrid capital

+€3.6bn Schiffsbank , -€2.7bn intercompanyelimination78025,499165,827Securitized liabilities

+€0.2bn Schiffsbank, -€1.2bn intercompanyelimination-9836921,463Negative fair values attributable to

derivative hedging instruments*

-578

-1,580

-187

537

820

-4,336

6,103

-351


forma

+€0.4bn Schiffsbank, -€5.0bn intercompanyelimination164,65196,208Liabilities from trading activities

+€0.8bn PPA1,8002,030Provisions

+€0.4bn Schiffsbank6,6286,075Other liabilities incl. tax liabilities

+€0.4bn Schiffsbank, -€0.6bn PPA4,68711,836Subordinated capital

capital consolidation Dresdner Bank and PPA4,49419,904Equity

420,961625,196TOTAL

Liabilities and Equity

+€5bn Schiffsbank, -€4.6bn intercompanyelimination66,786128,492Liabilities to banks

+€6.1bn Schiffsbank143,612170,203Liabilities to customers

Notes (i.a.)Dresdner Bank Group**

Commerz-bank Group

(€ m)

* Non-trading assets ** not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



12-13025Restructuring expenses

-5,505-401-4,700-403Pre-tax profit

-€138m deferred income tax PPA932-1381,535-465Taxes on income

-6,437-263-6,23562Consolidated surplus

390390Impairments on goodwill

+€15m 1), -€2m 4)133126259Consolidated surplus attributable to minorities

-6,570

-5,454

9,169

3,715

-131

81

-4,683

4,676

3,772

-3,553

7,325

CB Groupnew pro-

forma

+€26m 1), -€188m 2), -€121m 3) -154m 4) +131m PPA amortisation-3064,5194,956Operating expenses

-4481,3462,874Net interest income after provisioning

-€72m 2), -€182m 3), -€80m 4)-3322,1622,846Net commission income

-276

-415

-721

-36

15

80

-27

-421


forma

+€18m 1), -€6m 2), +€68m 4)-4,313-450Trading profit

+€451m 3), -€479m capital gains DRS731-665Net investment income

-€9m 3), -€13m other reclassification-68-27Other results

-1424,578Total income

-4,661-378Operating profit

-6,2973Consolidated surplus attributable to Commerzbank shareholders

Income Statement

-€316m PPA amortization, -€90m 4) 3,0174,729Net interest income

-€43m 1), +€16m 2)-1,671-1,855Provision for possible loan losses

Notes (i.a.)Dresdner Bank Group*


1) = Schiffsbank, 2) = OLB, 3) = cominvest, 4) = elimination 1.1. – 12.1. * not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



-€15m elimination of intercompany effects-4-13-1625Restructuring expenses

446374-338410Pre-tax profit

+€9m 1) -€2m 3) -€15m 4), -€34m PPA150-4511580Taxes on income

296419-453330Consolidated surplus



228

442

2,287

2,729

19

467

-260

1,180

1,323

-191

1,514

CB Groupnew pro-

forma

-€45m 2), -€32m 3), -€154m 4), +€33m PPA-1911,1561,322Operating expenses

-190669844Net interest income after provisioning

-€18m 2), -€51m 3), -€80m 4)-149597732Net commission income

417

361

170

-14

447

76

-6

-184


forma

+€4m 1), +€4m 2), +€68m 4)-509173Trading profit

+€2m 2), +€451m 3), -€8m 4)46-26Net investment income

-€15m elimination of intercompany effects-134Other results

8021,757Total income

-354435Operating profit

-469280Consolidated surplus attributable to Commerzbank shareholders

Income Statement – Q1

+€27m 1) -€41m 2), -€91m 4), -€79m PPA 6791,019Net interest income

-€11m 1), +€4m 2)-10-175Provision for possible loan losses



1) = Schiffsbank, 2) = OLB, 3) = cominvest, 4) = elimination 1.1. – 12.1.2008 * not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



other reclassification1010Restructuring expenses

-131-106-509484Pre-tax profit

-€34m deferred income tax PPA-390-4137-386Taxes on income

259-65-546870Consolidated surplus



190

-130

2,428

2,298

52

1

-262

1,204

1,303

-488

1,791

CB Groupnew pro-

forma

+€7m 1), -€47m 2), -€33m 3), +€33m PPA amort.-401,0951,373Operating expenses


-€19m 2), -€46m 3)-65552717Net commission income

-66

-106

-146

-3

-10

1

-8

-61


forma

+€5m 1), -€3m 2)-638375Trading profit

-€4m 3)97-86Net investment income

-€2m 3)-3691Other results

5871,857Total income

-508484Operating profit

-561817Consolidated surplus attributable to Commerzbank shareholders


+€27m 1) -€32m 2), +€20m 3), -€79m PPA amort.6781,174Net interest income




1) = Schiffsbank, 2) = OLB, 3) = cominvest * not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



-€32m other reclassification320320Restructuring expenses

-1,45075-1,050-475Pre-tax profit

-€34m deferred income tax PPA49-24275-202Taxes on income

-1,49999-1,325-273Consolidated surplus



-1,532

-1,418

2,504

1,086

-33

-284

-672

1,227

848

-898

1,746

CB Groupnew pro-

forma

+€6m 1), -€48m 2), -€32m 3), +€32m PPA amort.-401,3071,237Operating expenses



95

75

35

-1

196

5

-9

-94


forma

+€5m 1)-380-297Trading profit

-€3m 1), +€11m 2), +€189m 5)-251-229Net investment income

-€32m other reclassification-17-15Other results

289762Total income


-1,342-285Consolidated surplus attributable to Commerzbank shareholders


+€27m 1) -€40m 2), -€79m PPA amortization6291,211Net interest income




1) = Schiffsbank, 2) = OLB, 3) = cominvest, 5) elimination capital gains asset sale Dresdner Bank * not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



other reclassification-170-170Restructuring expenses

-4,371-745-2,804-822Pre-tax profit

-€34m deferred income tax PPA1,123-281,10843Taxes on income

-5,494-717-3,912-865Consolidated surplus


+€4m 1), +€3m 2)-37613-56Consolidated surplus attributable to minorities

-5,457

-4,349

1,950

-2,399

-169

-104

-3,489

1,065

298

-1,976

2,274

CB Groupnew pro-

forma

+€6m 1), -€48m 2), -€24m 3), +€32m PPA amort.-369621,024Operating expenses

-86-303687Net interest income after provisioning


-723

-745

-781

-18

-619

-2

-4

-82


forma

+€4m 1), -€6m 2)-2,786-701Trading profit

+€19m 3), -€668m 5)839-324Net investment income

-14-137Other results

-1,820202Total income


-3,925-809Consolidated surplus attributable to Commerzbank shareholders


+€33m 3) -€79m PPA amortization1,0311,325Net interest income

-€11m 1), +€7m 2)-1,334-638Provision for possible loan losses



1) = Schiffsbank, 2) = OLB, 3) = cominvest, 5) elimination capital gains asset sale Dresdner Bank * not congruent with Dresdner annual report 2008 due to implementation of Commerzbank classification



Agenda


4.

2.

1.





Pro-forma solid Tier 1 ratio maintained

Tier 1 ratio

Basel I Basel II

* according to IFRS, until September according to German GAAP

*

*

High capital ratios for a commercial banksSilent participation from SoFFin of €8.2bn (Tier-1 capital) by the end of 2008Pro-forma base end of 2008

Increase in risk-weighted assets to €338bnWithout SoFFin 2: 7% Tier-1 ratioIncluding SoFFin 2 (to be expected in Q2/09): 10% Tier-1 ratio

Mar'08 Jun'08 Sep'08 Dec'08* Dec'081) Dec'082)

Risk weighted assets (€ bn) 212 219 229 222 338 338

Tier I capital (€ bn) 16 16 17 23 24 34

6.9

10.1*

7.5 7.4 7.6

7.01)

Dec'07 Mar'08 Jun'08 Sep'08 Dec'08 Dec'08 Dec'08

10.02)

1) pro-forma base end of 2008 without SoFFin 2 2) pro-forma base end of 2008 including SoFFin 2


Agenda


4.

2.

1.





P&L effects from Silent Participation of €8.2bn in 2008 (IFRS)

-2.0-2Interest paid on SoFFin Silent Participation

00Consolidated profit

-0.9-1Allocation to retained earnings

0.6Tax credit on interest payment to SoFFin*)

0.53Consolidated surplus attributable to Commerzbank shareholders

2008Appropriation of profit

0.53Consolidated surplus attributable to Commerzbank shareholders

-59Consolidated surplus attributable to minorities

0.562Consolidated surplus

0.2-465(9)Taxes on income

0.7-403Pre-tax profit

-25(8)Restructuring expenses

0.7-378Operating profit

:::

0.74,729(1)Net interest income

€ m€ mNotes

SoFFin effect2008Income Statement

Interest income fromreinvestment SoFFin

Estimate: 3%

Tax credit on interestpayment to SoFFin

Taxes on interestincome

Interest payment to SoFFin

*) in the Annual Report 2008 booked in reserves


Balance sheet effects from interest payment on Silent Participation of €8.2bn in 2008 (IFRS)

Tax credit on interestpayment to SoFFin

Taxes on interest income

Interest payment to SoFFin

(0.7 -0.2) 0.5

0.6

-2.0

-0.9

0.2

2.0

:

0.6

:

0.7

€ m

SoFFin effect

- Retention of earnings

3,161Tax liabilities

625,196Total

8,200Silent participation from SoFFin

- Tax credit on interest payment

- Interest paymentt SoFFin

5,904Retained earnings

….

19,904Equitiy

- Liabilities to SoFFin

….Liabilities …

Liabilities adn equity

625,196Total

::

6,698Deferred tax assets

::

6,566Cash reserve

€ mAssets

2008Balance sheet

aggregated in equity


Estimate: 3%


P&L effects from Silent Participation of € 8.2 bn in 2008(German GAAP)

-2.0- 10,346Interest expenses

01Transfer to retained earnings

00Net profit

-0.9-1,205Transfer from retained earnings

2008Appropriation of profit

-0.9-1,204Net loss for the year

-0.4-33Taxes on income

-1.3-1,171Result from ordinary activities

…..

0.712,898Interest income

€ m€ m

SoFFin effect2008Profit and loss account

Taxes from interestincome and interest

payment

Interest payment SoFFin


Estimate: 3%

Commerzbank AG ‌ Investor Relations ‌‌‌ 27.03.2009

Jürgen Ackermann (Head of IR)P: +49 69 136 22338M: [email protected]

Sandra Büschken (Deputy Head of IR)P: +49 69 136 23617M: [email protected]

Michael KleinP: +49 69 136 24522M: [email protected]

Wennemar von BodelschwinghP: +49 69 136 43611M: [email protected]

Ute Heiserer-JäckelP: +49 69 136 41874M: [email protected]

Simone NuxollP: +49 69 136 45660M: [email protected]

For more information, please contact Commerzbank´s IR team:Stefan PhilippiP: +49 69 136 45231M: [email protected]

Karsten SwobodaP: +49 69 136 22339M: [email protected]

www.ir.commerzbank.com


Disclaimer

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 or guarantees 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.htm

Acquisition of Dresdner Bank as per January 12, 2009 · 2016-11-21 · Commerzbank AG Investor...

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