Milan, 21st January 2010

GRUPPO CARIGE
21st
GRUPPO CARIGE
Milan
January 2010
1
Agenda
Carige Group at a glance
Key financial highlights
3Q09 results
Strategic Priorities
GRUPPO CARIGE
2
Banca Carige Group today
~50,000 small
shareholders
Fondazione CR
Genova e
Imperia
i
44.06%
CEP
14.98%
Assicurazioni
Generali
2.97%
(*)
Market
37.99%
Banca Carige SpA
Cassa di Risparmio di Genova e Imperia
Banking
Insurance
Finance
• Banca Carige
• Carige Vita Nuova (life)
• Carige AM SGR
• CR Savona
S
C i
Ass.ni
A
i (non
(
life)
lif )
• Carige
• Creditis
C diti (C
(Consumer
Trustee
• Centro Fiduciario
credit)
• CR Carrara
• BM Lucca
• B. Cesare Ponti
5,881
EMPLOYEES
Main Companies Only
1.9 M CUSTOMERS
(1.2 M BANKING; 0,7M ASSURANCE)
643 BRANCHES &
385 INSURANCE OUTLETS
827 CONSULTANTS
EQUITY
3.6 € BILLION
Operational and accounting data as at 30 September 2009 - (*) After communication to Consob on 6 October 2009
GRUPPO CARIGE
3
Growth through a long season of acquisitions
Year
Capital collected
Mln. Euro
1994-95 IPO
1996-97
1997
Capital increase underwritten by La Basilese
Acquisitions
Mln. Euro
p
di Savona
1993-95-99 Cassa di Risparmio
228
61
1991-06-09 Insurance companies
473
46
1999-2007 Banca del Monte di Lucca
105
Bond conversion into new shares
Year
74
1998
Capital increase underwritten by
institutional investors
116
2000
21 branches from Banco di Sicilia
60
1999
Capital increase underwritten by CNCEP,
CDC, WestLB
236
2001
61 branches from Gruppo Intesa
277
Capital increases and issue of subordinated
convertible bonds
521
2002
42 branches from Gruppo
pp Capitalia
p
127
2006
Issue of a LT2 loan
500
2003
Cassa di Risparmio di Carrara
174
2008
Capital increase
957
Issue of subordinated loans (Tier 1, Lower
Tier 2, Upper Tier 2, Tier 3)
510
2008
79 branches from Intesa Sanpaolo
853
2009
Issue of a LT2 loan
100
2008
40 branches from UniCredit Group
115
2010
Issue of convertible bonds
400 *
2010
22 branches from Monte Paschi
130 **
2003-06
Total
2004-2008 Banca Cesare Ponti
3.552
61
Total
2.572
* Approved on 3 November 2009 by the Shareholders' Meeting and on 9 November 2009 by the Board of Directors.
** Amount subject to price adjustment
GRUPPO CARIGE
4
Carige purchased 22 branches
from Monte dei Paschi di Siena (1)
All the 22 ex MPS branches are located in Tuscany.
ex MPS branches
Other Carige’s branches
28
21
3
3
1
15
1
1
22 BRANCHES
Direct
Deposits
p
€871m
Indirect
Deposits
€667m
Loans (*)
€850
€850m
Price (**)
Customers
59,000
Employees
156
€130
€130m
1
1
1
2
data as at 30 Sept 2009
1
Total branches in Tuscany
GRUPPO CARIGE
(*) Average amount (Jan-Sept
(Jan Sept 2009)
(**)Subject to adjustment
79
(1) The finalisation of the transaction is
conditional
upon
obtaining
all
authorisations required.
5
A more and more diversified network
The network today
58/
69
/ 60
/
71/ 58
24
56/22
ex ISP
branches
ex Unicredit
branches
665
46/ 30
46/31
20/
643
18
28/18
France
253/13
1
ex MPS
branches
7
9
4
1/1
new
branches
22
40
79
56/ 24
79/21
4/ 11
5/11
1/ 5
2/8
13
15
33/ 35
40/38
522
2
137
3
2
9/33
TODAY
2007
2009
100%
72%
71%
68%
96%
48%
39%
38%
1989
7
6
11/
24
3
2
11/23
25
26
37/
53
63/52
Banking branches
Insurance outlets
GRUPPO CARIGE
665
394
% of Branches
in
Northern Italy
% of
Branches
in Liguria
Operational data
6
Among the top Italian banking Groups for...
Market Cap(1) (€b)
Total Assets 1H09 (€b)
983
40
• Ordinary
y shares
• Savings shares
39
3.6€b
0.5 €b
#5
#8
638
7
7
41
4,1
4
3
2
2
2
212
1
122
121
58
44
34
29
23
22
((1)) Data as at 11 January
y 2010
Domestic Branch Network 1H09 (#)
5,900 C/I (%) 1H09
#6
#8
4,865 73.9%
55.9% 56.1% 57.4% 57.8% 59.2%
65 5% 65.9% 66.8%
64.2%
64
2% 65.5%
60.1%
38.9%
3,120 2,175 2,007 1,284 799 642 582 497 262 Source: Companies data
GRUPPO CARIGE
Operational data and accounting data (1H09 report)
7
Among the top Italian banking Groups for...
Customer to Loans 1H09 (€b)
Net NPL ratio (%) 1H09
6.8%
#8
585 1
585.1 6 2%
6.2%
#8
Average:
4.5%
386.3 4.8%
4.2%
3.3%
145.1 96.8 1.9%
82.8 43.2 32.0 21.4 19.4 4.3%
3.6%
16.8 16.6 Net Bad Loan ratio (%) 1H09
2.8%
#5
#8
T1 ratio (pre
(pre-gov
gov. bonds)
Average: 1.7%
10,5
7,9
7,7
0,5
,
7,7
08
0,8
7,7
08
0,8
7,7
08
0,8
8,7
8,5
6,9
1,4
0,2
1,1
,
1,9
10,5
7,9
7,2
6,9
Other additional Tier 1
6,9
6,9
6,7
Government Bonds
6,2
1,4
5,2
1.7%
1.4%
7,3
1 1%
1.1%
1,6
0,5
5,2
0.7%
0.8%
1.8%
1.9%
1.5%
1 2%
1.2%
0.8%
Core Tier 1
Source: Companies data
GRUPPO CARIGE
5.4%
2 4%
2.4%
Tier 1 (%) 1H09
#4 CT1 ratio (pre
(pre-gov.
gov. bonds)
5.1%
Operational data and accounting data (1H09 report)
8
Agenda
Carige Group at a glance
Key financial highlights
3Q09 results
Strategic Priorities
GRUPPO CARIGE
9
Focus on retail
by segment
SME
38.0%
38
0%
L
O
A
N
S
Large Corporate
9.7%
by area (*)
Public Entities
4.1%
Other
7.6%
Centre
18.7%
South & Isles
6.4%
Liguria
Li
i
36.8%
Private & Affluent
ffl
2.4%
Small Business
10.4%
North
38.2%
Mass Market
27.8%
(*) by customers’ residence
LOANS TO CUSTOMERS 3Q09 : 21.9 €b
by segment
T
O
T
A
L
D
E
P
O
S
I
T
S
by area
Other
18.1%
18
1%
Centre
C
t
12.6%
South & Isles
5 9%
5.9%
Affluent & Mass Market
50.3%
Private
20.7%
Liguria
60.1%
North
21.4%
Corporate
10.8%
TOTAL DEPOSITS 3Q09 : 44.6 €b
Small business = turnover<1 m ; SMEs= <100 m€; Large Corporate= >100 m€
Data as at 30 September
S
b 2009
Mass Market: total deposits < 80 k€, Affluent > 80 k€, Private > 500 k€
GRUPPO CARIGE
Operational and accounting data (3Q09 report)
10
Customer based funding
Funding
€m
Interbank
I
t b k deposits
d
it
money market deposits
and current accounts
other deposits
Customer deposits
short
h t term
t
deposits
d
it
medium/long term deposits
and bonds
EMTN programme
deposits
bonds
Subordinated loans
floating rate bonds
convertible fixed rate bonds
%
1 052 5
1,052.5
43
4.3
784.2
268.3
3.2
1.1
21,179.2
14 166 1
14,166.1
86.1
57 6
57.6
7,013.1
28.5
938.0
50.0
888 0
888.0
3.8
0.2
36
3.6
1,091.5
1,081.6
9.9
4.4
4.4
0.0
327.1
327.1
1.3
1.3
Securitisation
1%
Subordinated loans
EMTN 4% p
programme
g
4%
Customer Customer
deposits
86%
Retail bonds
300 New issues for 1.6
€b over the last 12
months (0.8 €b net
of expired bonds)
200 €m
Securitisation
RMBS performing securities
Interbank deposits
4%
TOTAL FUNDING
24,588.4 100.0
Funding includes further 97.7 million from the
securitization
carried
out
in
2001,
derecognised in the financial statement
pursuant to the exemption allowed by IFRS 1
on first time adoption
100 ‐
Jan‐09 Feb‐09 Mar‐09 Apr‐09 May‐09 Jun‐09 Jul‐09 Aug‐09 Sep‐09 Oct‐09 Nov‐09 Dec‐09
issued bonds
Data as at 30 September 2009
GRUPPO CARIGE
expired bonds
Data as at December 2009
Operational data and accounting data (3Q09 report)
11
No pressure on liquidity
Current Debt Maturity Profile
Institutional operations
Operation
Issue
Date
2008
2.087 2.200
2.000
1.800
1.600
1.400
1.200
1.000
800
600
400
200
0
2 130
2.130 500 m
callable in 2011
1.437 Capital increase
957 € m
March
Tier 3
100 € m
June
Lower Tier 2
100 € m
June
Tier 1
160 € m
December
Covered bonds (*)
500 € m
December
PL Securitization
853 € m
December
Upper Tier 2
150 € m
December
1.171 1.067 970 326 410 110
110 2009
235 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Customers
Lower Tier 2
Covered Bonds (*)
100 € m
1,000 € m
June
November
2010
Institutional
C
Convertible
ibl bonds
b d (**)
Total
400 € m
F b
February
4,320 € m
(*) On a 5 € b plafond
€m
Data as at December 2009
GRUPPO CARIGE
(**) Approved on 3 November 2009 by the Shareholders' Meeting
and on 9 2009 by the Board of Directors.
Operational data
12
Inaugural covered bond issue - Cover pool highlights
Cover pool 2.3 €b
Commercial/Residential
Geographical distribution
Commercial
4.79%
South & Isles
10.91%
North
79.38%
Residential
95.21%
Current LTV
Interest Rate Type
70 ‐ 80
18.4%
60 ‐ 70
18.5%
50 ‐ 60
17.1%
40 ‐ 50
15.3%
30 ‐ 40
13.6%
20 ‐ 30
Fixed
46.20%
9.6%
10 ‐ 20
<10
Centre
9.72%
6.0%
Floating
53.80%
1.7%
Average LTV 50.32%
Average outstanding maturity 20.36 years
Figures refer to volume of originated mortgages
GRUPPO CARIGE
13
Inaugural covered bond issue - Bond allocation
Transaction details
Issuer/Guarantor
Banca Carige SpA/Carige Covered Bond Srl
Rating (Exp.)
Aaa (Moody's). AAA (Fitch)
Issue size
EUR 1.000 mln
Status
Inaugural Obbligazioni Bancarie Garantite
Maturity Date
25‐nov‐16
Value Date
05‐nov‐09
Coupon
p
3.75%
Re‐offer price/Spread
99.917% / MS +60 bps
Listing
Luxemburg
ISIN
Joint Lead Managers
TBD
Banca Carige (no books), DB, HSBC, Natixis, UBS, UniCredit Group (HVB)
UBS
UniCredit Group (HVB)
Investor distribution (allocation)
Geographical distribution (allocation)
4% 1%
5%
3% 2%
6%
41%
22%
6%
30%
26%
GRUPPO CARIGE
44%
10%
Fund manager
Bank
Italy
Germany
France
Central Bank
Pension Fund
UK/Ireland
Finland
CH/Austria
Insurance
Other
Iberia
14
Sound assets
Total asset breakdown
Intangible assets
1.709 Tangible assets
Tangible assets
5%
1.117 3%
Financial assets (*)
Other
2.926 9%
Mutual funds
2%
Debt securities
85%
Financial assets
7.246 21%
Hedge funds
<1%
Net loans to customers
21.410 62%
Hedging structured structured
notes
8%
Securitization
Equity and 1%
private equity
3%
Total assets 34.4 €b
(*) Data do not include the stake in Bank of Italy and
the notional value underlying customers’ index linked policies
Gross loan splitting
Total 6.3 €b
Debt securities, securitisation and structured notes rating
AA
62%
bad loans
4%
mortgage loans to individuals
38%
m/l term
/l t
73,7%
short tem
23%
loans to corporate
57%
consumer credit
5%
A
25%
Other
3%
Gross loans to customers 21.9 €b
BBB
7%
%
AAA
4%
Total 5.9 €b
Data as at 30 September 2009
GRUPPO CARIGE
Operational data and accounting data (3Q09 report)
15
Sound credit policy
NPL ratio (%)
Bad loan ratio (%)
8 0%
8.0%
7.4%
6.0%
5.5%
8 0%
8.0%
6.0%
4.0%
4.0%
2.0%
2.0%
3.6%
2.0%
0.0%
0.0%
Dec 06
Dec 07
Dec 08
Gross NPL ratio
Dec 06
Sept 09
Dec 07
Dec 08
Gross bad loan ratio
Net NPL ratio
Sept 09
Net bad loan ratio
NPL growth on December 2008
System (Jun 09 109.7 €b; + 31%)
Carige Group
(Sept 09 1.6 €b; + 26.2%)
900 60.000 +8.8%
€m
m
€ m 600 30 000
30.000 20.000 +39%
+24.7%
10.000 ...
+16.9%
‐
GRUPPO CARIGE
‐1.1%
500 +0.6%
+12.6%
400 300 ‐6.2%
200 +8.30%
...
100 +4.6%
...
+0.8%
‐
Dec 08
Dec 08
Bad Loans
+15.8%
+10.5%
700 +34,1%
+14.2%
40.000 +26.1%
800 +18.9%
50.000 Watchlist Loans
Mar 09
Mar 09
Jun 09
Jun 09
Rescheduled Loans
Past due
D 08
Dec 08
M 09
Mar 09
J 09
Jun 09
S t 09
Sept 09
Source: B.I.P. Bollettino Statistico
Operational data and accounting data (FY06 report - FY07 report – FY08 report –
1H09 report – 3Q09 report)
16
…in line with the competitors
9%
0,7%
8%
0,5%
0,6%
2,2%
ISP
0,6%
11%
0,6% 0,7%
UC
4,2%
BP
5,5%
3,9%
2,9%
6,1%
91%
89%
92%
NPL 7%
NPL 7%
5%
Rescheduled 0,5%
7%
0,6%
,
Past due Past
due
1,2%
0,3%
0,3%
0,4%
2,2%
Carige
BPM
2,5%
2,0%
Bad Loans 3,6%
4,0%
95%
Watchlist 2,1%
93%
3%
Performing Loans 93%
0,5%
0,0%
CREDEM 1,9%
97%
10%
1,1%
0 0%
0,0%
BPER
0,9%
GRUPPO CARIGE
UBI
4,9%
4,4%
90%
Percentage calculated on gross
loans to customers basis
Source: Companies data
Operational data and accounting data (3Q09 report)
17
Robust capital ratios and low leverage
Capital Ratios (%)
3Q09
14.00%
TOTAL CAPITAL RATIO
10.04%
12.00%
TIER 1 RATIO
7.70%
10.00%
T1 min
T1 recommended
Core TIER1 RATIO
6.90%
8.00%
T1 Carige Group
T1 Carige Group
6.00%
TCR min
TCR recommended
4.00%
TCR Carige Group
Core T1 Carige Group
2.00%
2001
2002
2003
2004
2005
2006
2007
2008
Sept
Sept 2009
26.5
26.5 27.3 Tangible Common Equity (*) – 1H09
23.0 24.2 20.3 16.0 16.4 17.3 17.4 17.9 13.0 Source: Companies data
( ) Total assets net of
(*)
intangible / Equity
Operational data and accounting data (1H09 report)
GRUPPO CARIGE
18
Agenda
Carige Group at a glance
Key financial highlights
3Q09 results
Strategic Priorities
GRUPPO CARIGE
19
3Q09 – Growth of Deposits and Loans
TOTAL DEPOSITS €b
42.4
44 6
44.6
LOANS TO CUSTOMERS
+ 5.3%
+2.6%
3Q08
LOANS
TO CUSTOMERS
21.9
=93.4%
CUSTOMER
DIRECT DEPOSITS
19.6
3Q09
DIRECT DEPOSITS
23.5
3Q08
+ 14.7%
20.5
6.7
+ 12.1%
+ 12.1%
+ 9.7%
3Q09
LOANS TO INDIVIDUALS
€b
€b
7.2
€b
+ 8.6%
+ 5.2%
3Q08
3Q09
INDIRECT DEPOSITS
21.9
21.1
3Q08
LOANS TO CORPORATE
€b
-3.5%
-6.3%
13.2
change
change net of
UC branches’ contribution
UC branches’ contribution
3Q08
GRUPPO CARIGE
3Q09
3Q09
11.5
€b
+15.7%
+ 14.9%
3Q08
3Q09
Operational data and accounting data (3Q08 report – 3Q09 report)
20
3Q09 – Steady net profit
PROFIT
O
235.2
163
3Q08
€m
251
-23.2
change
GRUPPO CARIGE
766.5
3Q08
3Q09
€m
-2.2%
+ 6.7%
3Q09
37.6
783.7
(*)
Gross profit
163.3
OTHER REVENUES
3Q08
CO
CORE
REVENUES
S
+ 0.2%
COSTS
€m
…
470 4
470.4
€m
+10.3%
426.5
3Q09
3Q08
3Q09
(*) Core revenues = Net interest income + Net commissions + Dividends
Operational data and accounting data (3Q08 report – 3Q09 report)
21
3Q09 – Results of the Group’s companies
‐6,1%
Change 3Q09/3Q08
179,2
‐30%
‐44,1%
10,6
CARIGE
78
7,8
, %
‐51,1%
‐44,1%
,
…
70,5%
2,7
0,6
0,8
0,5
CREDITIS
SGR
Cassa di Cassa di Banca del Banca Risparmio di Risparmio di Monte di Cesare Ponti
Savona
Carrara
Lucca
Carige Assicurazioni
Carige Vita Nuova
0,7
2.1
5,6
12 3
12.3
‐0.6
‐14,8
‐25
‐27.5
2008
IAS
No IAS
2009
IAS
No IAS
Data as at 30 september 2009
€m
GRUPPO CARIGE
Operational data and accounting data (3Q09 report)
22
Agenda
Carige Group at a glance
Key financial highlights
3Q09 results
Strategic Priorities
GRUPPO CARIGE
23
Our mission
Carige Group aims to be a national financial conglomerate equipped to
provide banking, financial, insurance and pension solutions, focused on
retail, pursuant to the development of resources and structures
g
multi-channel distribution system
y
and the enhancement of an integrated
Conglomerate
• Complete offer of
banking, financial
and insurance
products and
services
• Aggregation
A
ti
point
i t
for smaller banks
GRUPPO CARIGE
National
• Widespread
presence in Italy
especially in
certain areas and
strong presence in
Liguria
• Focused on the
relationship with
local communities
Retail
• F
Focusing
i
on
families, SMEs
and local public
entities
• Widespread and
intensive use of
technology
Quality of
resources and
structures
Multi-channel
• Distribution
• Specialisation of
system based
distribution and
on branches,
production structures
mobile and
• Unitary management
remote
of the Group’s keychannesl
expertises
i
• Professional
development of
human resources
• IT system in line with
best practice
24
In the light of the results of the acquired banks…
CAGR
Year of
the deal
Loans and
Deposits (€ b)
P d l
Pre-deal
2008
Net Income
(€ m)
P d l
Pre-deal
2008
C/I
(%)
P d l
Pre-deal
2008
∆ p.p.
10.1%
Banca del Monte
di Lucca
-38.3 p.p.
33.9%
8,5
1999
1.9
0.7
Cassa di Risparmio 1999
di Savona
-20.8 p.p.
17%
23 6
23.6
2.8
71.4
5.7
2008
+18.8 p.p.
21.5
48 2
48.2
0.6
4
P d l
Pre-deal
86.5
(#21 branches)
branches)
3.3%
ROE
(%)
50.6
2.7
+10.3 p.p.
13.9
3.6
(#50 branches)
branches)
6%
Cassa di Risparmio 2003
di Carrara
2.1
-24.2 p.p.
25%
2.9
12.5
73.6
+11.3 p
p.p.
p
17.6
49.4
6.3
4.1
(#34 branches)
branches)
Banca
Cesare Ponti
(#4 branches
branches)
)
2004
(Dec)
7.3%
1.1
91.6
…
1.4
1.7
-0.6
“Pre-deal” data refer to the last Annual report before the acquisition.
“Pre-deal” data of Banca Cesare Ponti refer to 2004 Annual report. CAGR= compound average growth rate
Source: Companies data
GRUPPO CARIGE
77.6
+9 p.p.
-14 p.p.
6.0
-3.0
25
…and of the purchased branches…
CAGR
Year of
the deal
∆ p.p.
Loans and
Deposits (€ b)
2000
2008
Banco di Sicilia
(#21
(#
21 branches)
branches)
2000
10.1
2008
2002
8.9%
Banca Intesa
(#61
(#
61 branches
branches)
)
2001
2008
2 5%
2.5%
(#42 branches)
branches)
(*): direct costs only
2002
of which:
loans
+9.6%
2.4
2.1
2002
-32.4 p.p.
66.4
18.4
2008
2003
34.0
2002
2008
-27 p.p.
69.8
2008
59.0
2003
5.5%
38.3
2008
32.0
2008
-36.4 p
p.p.
p
52.8
74.4
38.0
CAGR= compound average growth rate
Source: Companies data
GRUPPO CARIGE
C/I (*)
(%)
6.9%
43.7
3.6
2.0
2002
Capitalia
off which:
hi h
loans
+18.6%
2008
7.7%
0.8
0.5
2001
2002
of which:
loans
+17.6%
6.3%
Total revenues
(€ m)
26
…the last two acquisitions…
CAGR
ISP
(#79)
UCB
(#40)
Date of
the deal
March
2008
Loans and
Deposits (€ b)
Total revenues
(€ m)
2008
2008
6.0
2008
15
1.5
3.0
3
0
((*)) direct costs only
GRUPPO CARIGE
Other loans
54%
~35%
90.1%
~ 35%
3 %
ISP+UCB branches
Future
growth
based mainly on
corporate customer
development
target
84.8
55.5
Dec
2008
C/I (*)
(%)
Loans to corporate
46%
Other Carige branches
Other Carige branches
Other loans
41%
Loans to corporate
59%
27
…show a high potential…
Employees/Branch
4,9
5,2
4,2
Liguria
Extra
Liguria
Of which ex
ISP/UC
42%
Liguria
312
221
Loans/ total
intermediation
27%
Customers/employee
/
p y
Liguria
213
Extra Liguria Of which ex
ISP/UC
Contribution*/employee
(€/000)
262
24%
Extra Liguria Of which ex
ISP/UC
30,4
15
Liguria
12,2
Extra Liguria Of which ex
ISP/UC
Deposits/employee
(€/m)
22,1
102
Liguria
Total intermediation/
employee (€/000)
Extra Liguria
8,8
51
Of which ex
ISP/UC
Liguria
9,3
Extra Liguria Of which ex
ISP/UC
Data as at 31 May 2009
* Contribution = revenues – direct costs
Operational data
GRUPPO CARIGE
28
…to exploit
The ex ISP/UC branches:
• are essentially retail;
• have a quite limited development of loans;
• have relatively high rent costs;
• are relatively overstaffed.
Actions
Objective
New
customers’
acquisition
The objective is to bring into alignment the
performance of these branches to those of
Liguria, increasing, at the same time, the
local penetration.
The project being carried out is focused on ex
ISP/UC branches but it also regards other extra
Liguria branches. It aims:
Higher
retention
Enhancement
of the existing
portfolio
• to point out the short and medium term
priority on each branch
• to allow
outcomes
a
constant
monitoring
of
the
• to encourage the managerial approach
evolution of the coordination between the
different levels of area manager
GRUPPO CARIGE
Profitability
Costs
Focus on
•Campaigns/commercial
actions
•HR
•Products
•Layout/logistics
•HR
•Pricing/conditions
•Products
•HR
•Volumes remix
•Loans repricing
•Funding repricing
•HR
•HR
•Rentals renegotiation
Branch relocation
•Branch
29
The investment in the insurance companies…
In 1997, Banca Carige took over two insurance companies, one
operating in Life sector (Carige Vita Nuova, former Basilese Vita
Nuova) and one operating in Non life sector (Carige Assicurazioni,
former Levante Norditalia), for an overall consideration of €472.6
million, €271.4 million in the Life Company and €201.2 million for the
Non life Company
p y.
The total investments made by the bank to take the control of these
two companies and to strengthen them are lower than the multiples
paid in the last main market transactions.
GRUPPO CARIGE
30
…the life company…
Multiples transactions in Life sectors
Year
Target
Bidder
Quota
Price
Price/
Premiums
Price/ Equity
Goodwill (1)/
Premiums
2005
Bipiemme Vita
Fondiaria - SAI
46,0%
94,3
40,0%
3,93X
29,8%
2007
Arca Vita
BPER
20,0%
53,0
43,9%
2,13X
23,3%
2007
MPS Vita
AXA
50,0%
831,1
51,0%
3,73X
37,3%
2007
Berica Vita (Pop Vicenza)
Cattolica Assicurazioni
50 0%
50,0%
20 9
20,9
16 3%
16,3%
1 28X
1,28X
3 6%
3,6%
2007
Vicenza Life (Pop Vicenza)
Cattolica Assicurazioni
50,0%
23,2
26,8%
2,43X
15,8%
2007
BPV Vita
Fondiaria - SAI
50,0%
530,0
147,2%
4,94X
117,4%
2007
DWS Vita
Zurich Investment Life Spa
100,0%
97,3
121,2%
2,30X
68,6%
2008
UBI Vita
AVIVA
50,0%
65,0
41,9%
1,57X
15,2%
2008
Quadrifoglio Vita S.p.A.
SpA
MPS
50 0%
50,0%
92 5
92,5
52 8%
52,8%
1 77X
1,77X
22 9%
22,9%
2008
Quadrifoglio Vita S.p.A.
AXA MPS Assicurazioni Vita S.p.A.
100,0%
141,5
40,4%
1,35X
10,5%
2008
Chiara Vita S.p.A.
Helvetia SA
70,0%
79,6
119,1%
2,25X
66,1%
2008
CredemVita
Credem
50,0%
50,0
16,9%
1,49X
5,6%
2008
BCC Vita
Cattolica Assicurazioni
51,0%
44
72,6%
1,82X
32,8%
Average
60 8%
60,8%
2 38X
2,38X
34 5%
34,5%
Carige Vita Nuova
Banca Carige
100%
271,4
28,6%
1.63X
11,0%
Carige Vita Nuova Pro Forma (2)
Banca Carige
100,0%
203,4
21,4%
1.22X
3,8%
(1) Goodwill assessed as the difference between Price and Equity
(2) Investments excluding the surplus gained by Carige Assicurazioni by selling to the Parent Company Banca Carige 80% of its stake in Carige Vita Nuova (68 €/m) in 1999 and
2000.
GRUPPO CARIGE
31
…and the non life company
Multiples transactions in Non life sectors
Bidder
Quota
2006
Liguria Assicurazioni
Fondiaria - SAI
100,0%
148,1
84,4%
2,96X
55,9%
2006
Toro Assicurazioni
Investitori Istituzionali
10,0%
327,4
115,4%
1,36X
30,8%
2006
Fineco Assicurazioni
Fondiaria - SAI
51,0%
56,0
>250%
>5
>200%
2006
Toro Assicurazioni
Generali
55,5%
2.139,0
136,6%
2,68X
85,7%
2006
Toro Assicurazioni
Generali
33,5%
1.318,4
139,7%
2,74X
88,7%
2006
Duomo Assicurazioni
Mapfre
50,0%
473,0
89,6%
2,37X
51,7%
2007
Aurora Assicurazioni
Unipol
29,2%
657,2
67,9%
2,02X
34,2%
50,0%
250
>250%
>5
>200%
1,5%
61,0
139,8%
2,75X
88,9%
100,0%
1.250,0
153,7%
4,52X
119,6%
50,0%
181,4
>250%
>5
>200%
Novara Assicura
AVIVA
2007
Toro Assicurazioni
Generali
2007
Nuova Tirrena
Groupama
2007
MPS Danni
AXA
Price/ Equity
Goodwill (1)/
Premiums
Target
2007
Price
Price/
Premiums
Year
2008
Padana Assicurazioni SpA
Helvetia SA
100,0%
44,0
45,5%
0,25X
neg.
2008
Credem Assicurazioni
Reale Mutua Assicurazioni
50,0%
18
143,2%
2,92X
94,2%
2009
UBI Assicurazioni
BNP/ FORTIS
50,0%
120
150,8%
4,04X
113,5%
Average
115,2%
2,60X
76,3%
Carige Assicurazioni
Banca Carige
98,4%
201,2
37,9%
1.42X
11,2%
Carige Assicurazioni Pro Forma (2)
Banca Carige
98,4%
338,8
63,8%
2.39X
37,1%
(1) Goodwill assessed as the difference between Price and Equity
(2) Investiments, including settlement costs (losses) and the surplus gained by selling to the Parent Company 80% of the stake in Carige Vita Nuova (68 €m) in 1999 and 2000.
GRUPPO CARIGE
32
The bancassurance is growing well
Life Premiums
786
95% via
banking
branches
588
153
€/m
Stock premiums /
Indirect deposits
1999
2008
3Q09
3.5%
5.0%
6.3%
Source: Company data
GRUPPO CARIGE
33
The non life business needed some intervention:
on the portfolio…
Portfolio mix
1999
Portfolio mix
3Q09
18.2%
10.1%
50 1%
50.1%
42.5%
7.4%
71.7%
Motor ins.
Other car ins.
Motor ins.
P&C Ins.
Other car ins.
P&C Ins.
Number of motor insurance contracts
~1,200,000
Number of motor insurance contracts
~590,000
Number of insurance outlets 781
Number of insurance outlets 385
Claims ~206,000
Claims ~60,000
• Premium reduction policy in risky segments (Motor Ins.)
• Network rationalisation of the motor insurance agents
GRUPPO CARIGE
34
…and on the reserves
Over 2006–2007-2008 the company strengthened the reserves (€169.6
million) and recorded €77.4 million in P&L account due to the utilisation of
reserves for the cancellation of a reinsurance contract.
Technical reserve increase and
technical reserves/premium ratio
183%
83%
€m
123%
639 1999
Technical reserves
GRUPPO CARIGE
939 2008
Technical reserves/Premiums
35
The next step to integrating the insurance business
Target
Working area
1
ICT/ General register
2
Commercial development
on insurance companies’
customers
t
3
Network integration
(Assurbanca)
(
)
4
Bancassurance – CPI sale
5
Marketing &
communication
6
Real estate
7
Bancassurance products
8
Creditis
GRUPPO CARIGE
•
•
Personal data acquisition of the insurance companies
companies’ customers
Identification of the customers in common between bank and insurance companies
• Data analysis for defining specific commercial actions (cross selling)
• Complete revision of the operating and commercial processes to relaunch
the project
• CPI sale, pricing process review
• Guidelines definition to manage external communication
• Enhancing cost synergies of the communication campaigns
• Simplify the communication between Bank and insurance companies
• New synergies in the real estate acquisition and management
• Integration of the assurance products in the bank
bank’s
s products list
• Sale of assurance products together with financial services and credit cards
36
The next Convertible Bond Issue
Soft mandatory convertible bond scheme
Maximum nominal amount: €400 million
Duration: 5 years
Annual coupon payable in arrear from 2011 to 2015
100% of the p
principal
p amount
Early redemption faculty for the bondholders to redeem the bonds in Carige ordinary shares (1 share per 1
bond) after 18 months from the Closing Date and until the Maturity Date
Early redemption faculty for the Issuer,
Issuer after 18 months from the Closing Date to redeem the bonds by
issuing ordinary shares (11 new shares per 10 bonds) and making a possible additional cash payment for
granting a 10% premium
Board’s resolution to submit to the
Extraordinary meeting the proposal to
proceed with a convertible bond issue
SEPTEMBER 2009
Request of the
authorisation
to the Bank of Italy
GRUPPO CARIGE
Authorisation
by the Bank of Italy
OCTOBER 2009
Board’s resolution to proceed with
a convertible bond issue
NOVEMBER 2009
Extraordinary
Meeting
1Q2010
Announcement and
closing date
37
Disclaimer
This document has been prepared by Banca Carige SpA solely for information purposes and for use in
presentation of the Group’s strategies and financials. The information contained herein has not been
independently verified. No representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions
contained herein. Neither the company, its advisors or representatives shall have any liability whatsoever for
any loss howsoever arising from any use of this document or its contents or otherwise arising in connection
with this document. The forward-looking information contained herein has been prepared on the basis of a
number of assumptions which may prove to be incorrect and, accordingly, actual results may vary.
This document
Thi
d
t does
d
nott constitute
tit t an offer
ff or invitation
i it ti
to
t purchase
h
or subscribe
b
ib for
f
any shares
h
and
d no partt off
it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this
presentation should inform themselves about and observe such restrictions.
The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed
to any other party. By accepting this document you agree to be bound by the foregoing limitations.
*****
The manager responsible for preparing the company’s financial reports Daria Bagnasco, Planning and
Accounting Head Office Manager of Banca CARIGE S.p.A.,
S p A declares,
declares pursuant to paragraph 2 of Article 154 bis
of the Consolidated Law on Finance, that the accounting information of Banca CARIGE S.p.A. and the
consolidated accounting information of Banca CARIGE Group contained in this presentation correspond to the
document results, books and accounting records.
GRUPPO CARIGE
38
Contacts
Giacomo Burro
CFO & Wealth Management Head Office Manager
giacomo.burro@carige.it
i
b
@
i
it
Tel: +390105794580
Daria Bagnasco
Planning and Accounting Head Office Manager
daria bagnasco@carige it
daria.bagnasco@carige.it
Tel: +390105794869
Maurizio Marchiori
Head of Planning & Control
maurizio marchiori@carige it
maurizio.marchiori@carige.it
Tel: +390105794868
Nicola Pegoraro
Head of Trading & Finance
nicola pegoraro@carige it
nicola.pegoraro@carige.it
Tel: +390105793377
Emilio Chiesi
Head of International Funding & UK Representative
e.chiesi.carige@btconnect.com
Tel: +442076002608
Investor Relations
investor.relations@carige.it
Tel: +390105794877
GRUPPO CARIGE
39