ASSET MANAGEMENT. D. Frigerio Head of Private Banking & Asset Management Division

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1 ASSET MANAGEMENT D. Frigerio Head of Private Banking & Asset Management Division

2 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 2

3 PRIVATE BANKING & ASSET MANAGEMENT DIVISION AT A GLANCE: A GLOBAL PROVIDER PRIVATE BANKING & ASSET MANAGEMENT DIVISION Total Assets incl. AuA Total Assets incl. Capitalia Market Coverage Asset Management ~290 bn ~330 bn Global Private Banking ~ 190 bn ~ 210 bn European UCI Lux. & Subs HVB Luxemburg PB AMG Data as per March

4 WITH STRONG FINANCIAL RESULTS AND VALUE CREATION PROFIT&LOSS 2006 y/y% (eur mln) Total Revenues 2, % Operating Income 1, % Profit before Taxes 1, % Cost/Income 55.3% -583 bps FY06 EVA Poland Markets 12% CEE 16% Retail 9% MIB 23% Corporate 19% PB & AM 21% y/y % ch. Retail +345 mln Corporate 69.1% Private & AM 40.9% MIB 55.1% CEE 70.7% Poland Markets 46.3% 4

5 PIONEER INVESTMENTS AT A GLANCE: LOCAL FOCUS BUT GLOBAL REACH present in 22 countries ~2,450 employees, thereof more than 300 investment professionals Chicago Omaha Boston New York Bermuda Miami London Dublin Prague Luxemburg Paris Madrid Bern Geneva & Zurich Hamburg Sofia Turin Warsaw Munich Budapest Bucharest Tel Aviv Vienna Zagreb Beijing Taipei Hong Kong Milan Singapore global investment hubs local investment hubs sales offices Sydney 5

6 A CONSISTENT BUSINESS MODEL ASSET MANAGEMENT DIVISION PRODUCTION CENTRAL INTELLIGENCE RELATIONSHIP MODEL PROPRIETARY THIRD PARTY WHOLESALE INSTITUTIONAL Advice Platform Financial Planning Product Design LOCAL BANKS OTHER DISTRIBUTION IFA ONLINE B2B SERVICE 6

7 THAT IS GLOBAL AND INTEGRATED Distribution Channels Retail & Private Proprietary Third Party/Wholesale Institutionals Assets Italy Germany AuM eur bn TOP STARFUNDS Reputation Values Brand Culture Pioneer Investments model Investment solutions Open/Closed Mutual funds Hedge funds Segregated accounts Guaranteed & VAR products Asset allocation Pension products International USA CEE Austria (1) Total AuA Data as per 31 May 2007 (1) Pioneer Investments Austria is currently a subsidiary of Bank Austria Creditanstalt 7

8 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 8

9 PIONEER INVESTMENTS IS THE NUMBER ONE PLAYER IN THE CEE REGION LEVERAGE ON international brand recognition one engine for investments wide range of global and local products strong distribution channels 9

10 WITH A DIVERSIFIED PORTFOLIO... Pioneer Investments Poland Hungary Czech Rep. Slovakia Bulgaria Slovenia Romania Russia Pioneer AuM total Further AuM non-consolidated Croatia Turkey AuM total AuM eur mln 7,985 1, start up 10,170 1,061 (1) 3,271 (2) 14,502 BREAKDOWN OF ASSETS IN CCE Others 21% Balanced 46.4% Equity 32.6% Source: Pioneer Investments, as of 31/5/2007 (1) including AuM of ZB Invest, Croatia (2) AuM of Yapi Kredi Asset Management 10

11 SHOWING IMPRESSIVE GROWTH AND CREATING INCREASING VALUE AuM eur mln 8,258 10,170 Net Sales eur mln 1,046 1,322 1, ,029 1,574 2,277 3,698 5, May 07 Cost/Income Ratio 117% 77% 66% 47% 49% 37% YTD EBIT eur mln EBIT (1) -0.5% 3.3% 4.4% 6.7% 7.3% 9.4% (1) In % of total Pioneer 11

12 CEE MORE THAN ON TRACK WITH 2008 TARGETS AuM eur bn EBIT eur mln F 2008 T F 2008 T Actual 3y-plan Actual 3y-plan 12

13 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 13

14 Example: Poland POLAND THE BENCHMARK A REWARDING VENTURE BUILT ON STRONG COMPETITIVE ADVANTAGES Market leader: first mutual fund company in Poland, no. 1 with regards to AuM, which amounted to almost eur 8 bn as per 5/07 Strong brand, good reputation, certified by numerous awards Best and most efficient financial services company in Poland Best known and most respected brand in the financial sector Widest product range offered by locally domiciled fund manager (30 funds) Effective co-operation with distribution channels, with integration enhancing potential Stocks and equity 35% AuM : CAGR 40.2% p.a. EBIT : CAGR 86.4% p.a. ASSET MIX Liquidity and cash 4% Fixed Income products and bond 12% Balanced and flexible 49% 14

15 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 15

16 CEE IS ONE OF THE FASTEST GROWING REGIONS, BEING REFLECTED IN STRONG GROWTH OF HOUSEHOLD WEALTH Estimated growth of Household Wealth eur bn Turkey Russia Slovenia Slovakia Romania Poland Hungary CEE + Russia: CAGR 16.4% p.a. from eur 760 bn in 2006 to eur 1,200 bn in 2009 Czech Rep Croatia Bulgaria Wealth 2006 Wealth Growth Source: New Europe Households Wealth and Debt Monitor, UniCredit May

17 WITH FUNDS AMONGST THE MOST DEMANDED PRODUCTS Estimated cumulative growth of bank deposits vs. funds % Bank deposits Mutual funds CEE + Russia: CAGR% 40.8 deposits + currencies 15% securities + shares 11% mutual funds 22% insurance 18% pension funds 21% Bulgaria Croatia Czech Rep. Hungary Poland Romania Slovakia Slovenia Russia Turkey Source: New Europe Households Wealth and Debt Monitor, UniCredit May

18 OFFERING HUGE POTENTIAL TO REACH WESTERN STANDARDS 80% Managed as a % of HFA 60% 40% 20% 0% Netherlands US Australia Sweden Canada UK France Italy Switzerland Singapore Germany Spain Korea Poland Hungary Japan Greece Slovakia Turkey Household portfolios: Switching from liquidity & unmanaged to managed assets Czech Russia Croatia Bulgaria Romania CEE 0% 20% 40% 60% 80% 100% Per capita HFA: Europe Asia & Pacific New Europe North America Liquidity as a % of Household Financial Assets (HFA) Source: PGAM Research based on Central Banks data 18

19 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 19

20 THE APPROACH: BUILD ON PIONEER S COMPETITIVE ADVANTAGES Market share High Low Initiating coverage Approach A superior advise model Build on Pioneer s strengths Create seeds for future growth Croatia (1) Bulgaria Ranking 1 1 Market share in % Poland Turkey (2) Czech Rep Hungary Slovakia Romania Slovenia Source: Pioneer Investments, as of 31/03/2007 (1) Including market share of ZB Invest, Croatia (2) Market share of Yapi Kredi Asset Management 20

21 Our Approach to Competitive Challenges in Countries with High Market Share: a Superior Advice Model BY OFFERING A SUPERIOR ADVICE MODEL Tactical Asset Allocation Absolute Return Objective Cooperation for Advice Unbundling level Multi-classes ALM Discretionary Account Advice account Total return funds Client sophistication Use the most appropriate approach to help client in: understanding risk appetites matching risk with realistic expectations 21 Adopt, propose the adequate solutions which best fit client objectives and expectations

22 AND LEVERAGING ON PIONEER S STRENGTHS INTERNATIONAL RECOGNIZED BRAND Re-branding campaigns introducing Pioneer to local markets, e.g. Hungary PRODUCT RANGE & KNOW-HOW Extensive range of both global (Luxembourg-based) and local products with a competitive edge, e.g. guaranteed, total return funds STRONG INVESTMENT ENGINE Powerhouse of quality for every stage of the product development cycle Innovative products Time-to-market production Solutions for specific needs 22

23 RUSSIA A NEW VENTURE RUSSIA A market ready for take-off The environment: huge potential High GDP growth Increased demand for capital Offshore products investing into Russia Excellent positioning of distribution channels Strong proprietary channel already existing (IMB) Group relationships to future third party sales channels PIONEER S APPROACH Establish leading domestic asset manager covering all major market segments Leverage Pioneer s global investment capabilities Provide local platform for Pioneer s global clients investing into Russia 23

24 IN A DYNAMIC MARKET WITH AMBITIOUS GROWTH TARGETS SUPPORTED BY A WELL BALANCED DISTRIBUTION MODEL AuM eur mln ~2,140 Net sales eur mln ~1,170 ~ ~840 ~660 Proprietary fund sales 70% Non-proprietary fund sales 30% ~

25 AGENDA Asset Management at a glance CEE - the story so far Poland the benchmark Opportunities and challenges The approach The goals 25

26 Goals for the future THE GOALS: TAKE ADVANTAGE OF A FAST GROWING REGION AuM in CEE Additional AuM of eur 11bn till 2010 Number one in the region Amongst the top 3 in every major market Enter into new markets to create seeds for future growth Russia and beyond May '07 Dec. '10 Maintain margins with efficient product cycle management and innovation Incl. Croatia and Turkey 26