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European Financials Conference: Navigating the Sea of Change
Commerzbank
Dr. Eric StrutzChief Financial Officer
Puerto Banus - Spain June 9, 2005
Chart Chart Chart Chart 1111
German banks suffering from sluggish German economy
Total operating revenues of German private-sector banks
43.7
50.2
36.140.1
53.4
1.0
-0.10.1
1.6
0.8
2.9
2000 2001 2002 2003 2004 2005e
Operating revenues GDP in %
- 6.0%
- 13.0%
- 17.3%+ 11.1%
in € bn Operating revenues before provisioning further down by 1.2%
Chart Chart Chart Chart 2222
Turnaround story of CommerzbankGa
inin
g op
erat
ing
stre
ngth
Gaining financial strength
2001 2002 2003 2004 2005Q3 Q4
� Revaluation of participation portfolio� Capital increase
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
�Cost-cutting initiative II
�Sale of CAMI and Montgomery
� Asset Management: “Shrink to Grow” � Retail Banking: “Play to win”
� “Rightsizing” Securities� New operating structure
� Mittelstand: “Move to the top”
� Retail Banking: “Grow to win”� Acquisition of SchmidtBank
�Cost-cutting initiative I
�Loan-portfolio check
� Accelerated disposals of non-core assets� Increasing reserves in key balance-sheet items
� Clear, direct reporting lines � New management impetus
Chart Chart Chart Chart 3333
Implemented measures show results
Financial strength
1,5051,603
1,240
189
-769
1,430
5.7 6.0 7.3 7.3 7.5 7.2
2000 2001 2002 2003 2004 Q1 2005
Revaluation reserves Tier 1 ratio in %
in € m
Operating strength
1,043
559192
441
2,350*
4,4614,511
5,155
5,8855,475
2000 2001 2002 2003 2004
Operating profit Operating expenses
in € m
* Including €1,216m one-off from comdirect´s IPO
Chart Chart Chart Chart 4444
Turnaround taking hold in 3 out of 4 core activitiesOperating profit in € m
-147
3
256
-2962001 2002 2003 2004
Securities
384
258
-243
53
2001 2002 2003 2004
Retail banking
137
90
44
13
2001 2002 2003 2004
Asset management
605
355
832
453
2001 2002 2003 2004
Corporate customers and institutions
Chart Chart Chart Chart 5555
#5 German Asset Manager
Quality leader in UK and France
Commerzbank with a clear strategic profile
Private & Business
Customers
#3 German Retail Bank� 5m customers
� #1 in Online Banking
� #2 in Private Banking
Asset Management
Mittelstands-bank
#2 Mittelstandsbank� 16% market share inGermany´s global trade
� > 40% (S)MEs run an account with CB
Top 10 player in CEE
International Corporate Banking
#2 German Financial Institution Group� Partner for 6,000 financial institutions
Successful niche strategy in USA
Corporates & Markets
#3 Distributor of structured products (in Germany and France)
#2 MLM in LBO Finance in Germany
PCAM CIB
Commerzbank
1111 operating RoE Source: Q1 2005 figures
RoE1: 14.7%
CIR: 78.5%
RoE: 27.8%
CIR: 72.0%
RoE: 9.2%
CIR: 56.1%
RoE: 9.9%
CIR: 55.4%
RoE: 21.6%
CIR: 68.0%
Chart Chart Chart Chart 6666
Commerzbank’s main achievements
� Successful transformation � Focused strategy� Considerable reduction of risk exposure
� Top 2 Mittelstandsbank in Germany� Top 3 Retail bank in Germany � Top 10 in Central/Eastern Europe
1. Strong capital base
2. Operating strength
3. Leading market positions
� Well-capitalized balance sheet� Strong Tier 1 ratio� Significant increase in revaluation and other
reserves
Chart Chart Chart Chart 7777
Commerzbank’s core objectives
4. Quality leader in products supplied to distribution platform
1. Becoming the best German retail bank
2. Developing into the best bank for Germany´s Mittelstand
3. Building on Top 10 position in CEE
5. Tight cost/productivity management
Chart Chart Chart Chart 8888
Commerzbank uses selective acquisitions to sharpen its profile
String-of-pearls acquisitions
SchmidtBank� 350,000 retail customers� 70 branches� 2,000 corporate customers
BRE Bank� 1m retail customers� 52 branches and well established
internet banking platform (retail)� 23 branches (corporate) � 20% of top 500 corporates run
an account with BRE
Strategic fit
growth
synergies
� 9% more clients in relation to cost increase of 3% � Expanding position in
Northern Bavaria and Saxony
� Excellent access to region with high growth potential � High-quality client base � Building on Top 10 position in CEE
growth
synergies
Chart Chart Chart Chart 9999
Germany still in early stage of national consolidation
time
1. 1. 1. 1. Stand-alone restructuring
process
2.2.2.2. String-of-pearls
acquisition strategy
3.3.3.3. 3-5 National champions in each country
4.4.4.4. 3-5 European champions on a joint distribution
platform
5. 5. 5. 5. 3-5 Global players
global
Germany Commerzbank US ScandinaviaFrance UK
For more information, please contact:Commerzbank Investor Relations
Tel. +49 (69) 136 22 33 8
Chart Chart Chart Chart 11111111 Chart 18Chart 18Chart 18Chart 18
/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 orguarantees 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.html.