Frankfurt, September 4, 2002 Investment Banking€¦ · Joint Bookrunner for Iran’s debut EUR625m Eurobond issue Arranger and Lead Manager of an EUR1bn synthetic RMBS issue for

Investors’ Day

Investment Banking

Mehmet DalmanMember of the Board of Managing Directors

Frankfurt, September 4, 2002

Investors’ Day September 4, 2002 1

Contents

Background

2002: First half review

Future

Conclusion


Investment Banking strategy

� Phase I 1997-1999To establish a fully integrated, profitable Equities business, in a controlled environment

� Phase III 2002-To establish a differentiated franchise integrating Commerzbank’s Corporate, Retail and Investment Banking strengths

� Phase II 2000-2002To establish a fully integrated Securities platform, and launch an advisory business


Phase I 1997-1999To establish a fully integrated, profitable Equities business, in a controlled environment

DerivativesECMOrigination

Equity Sales

Cash TradingResearch

1997 1998 1999

Cbk launchesnew Equity Initiative

Frankfurt, London,NY, Tokyo Offices

CFP and ECM Integrated

Global Equities

Launched

� CFP integrated� ECM integrated� Emerging markets

integrated� Regional activities

integrated


Phase I 1997-1999LondonFrankfurt

Research

Brokerage

Marketing

Equity ResearchQuant Research

ECM

Equity TradingDerivatives Trading

Equity DistributionDerivative Distribution


ECM



Management Centre


ECM


Equity DistributionDerivative DistributionRetail Distribution

Management Centre


ECM


Equity DistributionDerivative DistributionRetail Distribution

Derivatives

New York

Global Equity ResearchQuant Research

ECM




ECM



Tokyo


ECM

Equity TradingAsian Derivatives Trading



ECM

Equity TradingAsian Derivatives Trading


Risk

Account Management


Phase II: 2000-2002 To establish a fully integrated Securities platform

� Integration of businesses to provide multi-asset Securities platformresearch, origination, trading, distribution

� Integrating FX, short-end rates, local markets

1997 1998 1999 2000

Cbk launchesnew Equity Initiative

Frankfurt, London,NY, Tokyo Offices

opened

CFP and ECM Integrated

Global Equities

Launched

Commerzbank Securities Launched

2001 2002

Equity & Fixed Income Integrated

Corporate FinanceIntegrated

FX Integrated

FXEquitiesFixed

IncomeEquity

DerivativesCapitalMarkets


League Table performance

Neuer Markt IPOs 2000-2001, Bookrunner and joint lead, ranked by value

1 Commerzbank Securities2 Dresdner Kleinwort W'stein3 DZ Bank AG4 Goldman Sachs & Co5 Deutsche Bank6 Morgan Stanley7 HypoVereinsbank8 Westdeutsche Landesbank 9 Salomon Smith Barney

10 UBS WarburgSouce: Capital Data

1 Deutsche Bank2 JP Morgan3 Merrill Lynch & Co4 Commerzbank Securities5 Morgan Stanley6 Dresdner Kleinwort W'stein7 BNP Paribas8 Salomon Smith Barney9 Goldman Sachs & Co

10 Societe Generale

All Euro-denominated German Corporate Bonds 2000-2001, Bookrunner, ranked by value

Souce: Capital Data

IPOs on European Exchanges 2000-2001, Bookrunner and joint lead, number of deals

1 Credit Suisse First Boston2 Deutsche Bank3 Commerzbank Securities4 Goldman Sachs & Co5 Morgan Stanley6 Salomon Smith Barney7 DZ Bank AG8 HypoVereinsbank9 ABN AMRO

10 UBS WarburgSouce: Capital Data

All Jumbo Pfandbriefe2001, Bookrunner, ranked by value

Souce: IFR

1 Commerzbank Securities2 DrKW3 Deutsche Bank4 HypoVereinsbank5 CDC IXIS6 Barclays Capital7 Citigroup/SSSB8 DZ Bank9 Goldman Sachs

10 Credit Agricole


Contents

Background


Future

Conclusion


The market environment in H1

Credit Spreads (bp)

0

50

100

150

200

250

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02AAA

BBB

AAA

Moody's W European Upgrades & Downgrades (number)

-70-60-50-40-30-20-10

0102030

Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02

Dow ngrade

Upgrade

10y Bund

104.00

105.00

106.00

107.00

108.00

109.00

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02

Eurostoxx 50

2800

3000

3200

3400

3600

3800

4000


Source: Commerzbank Securities Research


Financials: 2002 H1

� Income 37% below 2001 H1 � Direct costs 25% below 2001 H1

� Allocated costs 95% above 2001 H1� Allocated costs make up 39% of

total costs for 2002 H1

(EUR M) 2001 H1 2002 H1 change

Income (excl co-man.) 534 339 -37%

Direct Costs 371 280 -25%Alloc Costs 91 177 +95%

Post-Tax Profit 65 (54)(inc co-managed)

Capital 1,277 1,068 -16%


Divisional analysis - Equities

� Market has not recovered� Business has been refocused

� Pan European Equities model adapted to meet market challenges

� Research aligned around global core sectors

� Japanese business re-sized; positioned to benefit from any recovery

� Cost growth curtailed & costs reduced

� Pan European commissions and net performance improved

Eurostoxx 50

2800

3000

3200

3400

3600

3800

4000


S&P 500

950

1000

1050

1100

1150

1200



Research & Extel Survey

Extel 1999-2002

13579

1113151719

1999 2000 2001 2002

17th & "Rising Star Broker"

7th

9th11th

1 UBS Warburg2 Schroder Salomon Smith Barney3 Deutsche Bank4 CSFB5 Merrill Lynch International6 Morgan Stanley7 Commerzbank Securities8 Goldman Sachs International9 Dresdner Kleinwort Wasserstein10 ABN AMRO11 JP Morgan12 Lehman Brothers13 HSBC Securities14 Cazenove15 Credit Agricole Indosuez Chevreaux16 ING 17 SG Securities18 Exane19 WestLB Panmure20 Enskilda Securities

Extel Survey 2002:Overall Pan-European Brokerage Firm

*based upon aggregation of votes in all categories

Recognition for our Research, Sales and Trading across Equities, Fixed Income and Derivatives

� Differentiated Research Product� Integrated Credit and Equity

Research� Quantitative expertise and Risk

Management analytics


Divisional analysis - Capital Markets� Capital Markets restructured for

the new environment

� New structure� Equity Product� Debt Product� Financial Sponsors� Sector and Country Teams� Capital Structuring

� Re-designed to capture anticipated opportunities in corporate restructuring

Moody's W European Upgrades & Downgrades (number)

-70-60-50-40-30-20-10

0102030

Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02

Dow ngrade

Upgrade


Selected Transactions in H1 2002

M&AAdvised RWE on the EUR4.1bn acquisition of Transgas in the Czech Republic

Debt MarketsJoint Bookrunner of EUR250m 10 yr bond issue for Republic of Iceland

Joint Bookrunner for Iran’s debut EUR625m Eurobond issue

Arranger and Lead Manager of an EUR1bn synthetic RMBS issue for Rheinhyp

Joint Lead Manager of a EUR500m 10 yr Landesschatzanweisung for Free State of Bavaria

Joint Bookrunner of a GBP200m 10 yr issue for GKN plc

Equity MarketsJoint Lead Manager of EUR111m IPO of Astaldi - A successful issue completedin difficult market conditions

Syndicated LoansCompleted first round syndication of the EUR830m Vaillant syndicated loan facilitySole Arranger EUR300m revolving credit facility for Epcos


Divisional analysis - Equity Derivatives

� Equity Derivatives market very difficult, with flow product volumes down 85% from 2000 levels� our market share is very

strong, but overall levels very weak

� Failing investor confidence in equity markets

� Risk platform fully integrated

CBOE S&P100 Volatility Index

15

20

25

30

35


Amsterdam warrant market share, July 2002

0%

10%

20%

30%

40%

50%

60%

70%

80%

Commerzbank SocieteGenerale

ING Fortis ABN


Divisional analysis - Fixed Income

� Interest rate markets volatile, responding to equity market

� Difficult credit markets� accounting revelations

producing many problem corporates

� Strong overall performance in H1

10y Bund

104.00

105.00

106.00

107.00

108.00

109.00


Credit Spreads (bp)

0

50

100

150

200

250

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02AAA

BBB

AAA


New businesses integrated from June 2002

� Short-term interest rates integrated with existing rates business

� Local Market activities integrated into Credit business

� Commerz Futures Chicago integrated into global Derivatives business

� Foreign Exchange integrated into ComSec

� Credit and Equity Research integrated

� Fully integrated, multi-product sales force established

� Fully integrated risk platform


Contents

Background


Future

Conclusion


� leveraging corporate relationships� innovation in product, research and use of technology� attracting, developing and retaining the best staff in the

industry

To be a leading provider of high quality risk intermediation for our clients

SovereignsSupranationals

Corporates

Major Investing InstitutionsHedge Funds

Retail

Corporate Risk and Capital Structure

Investment Banking Strategy


� Corporate clients need both Corporate Banking and Investment Banking services

� Our strategy is to enhance value through a deep understanding ofcorporate risk and capital structure

� Increasing use of securitisation, derivatives

� Blurring of lines between lending and credit trading

� Managing relationships with both corporates and investors

� Focusing capital and credit resources to support this strategy

Corporate and Investment Banking


Sector

Sector

Sector

Sector

Sector

Sector

Sector

InvestmentBanking

CorporateBanking

� Credit Management

� Know-how in Corporates

� Cross-Selling

� Lending and High Margin Business

� Risk Management

� Quality Credit Portfolio

Corporate and Investment Banking


� Developments in the financial environment� German financial environment� Broader market backdrop

� equity recovery?� bond markets?� asset-backed markets?� corporate restructuring?

� Internal Issues� Human resources� Alignment between divisions � Cost-efficiency

Challenges


� Corporate and Investment Banking coming together

� We have a unique business platform

� A leading provider of risk intermediation

� Corporate structuring and restructuring

� Integration across asset classes

� Strong Retail distribution

� Stable management team

� Able to compete and win

Conclusion

Documents

Frankfurt, September 4, 2002 Investment Banking€¦ · Joint Bookrunner for Iran’s debut EUR625m Eurobond issue Arranger and Lead Manager of an EUR1bn synthetic RMBS issue for