Welcome to the Annual General Meeting of Raiffeisen International Bank-Holding AG

Transcription

1 Welcome to the Annual General Meeting of Raiffeisen International Bank-Holding AG

2 Agenda Item One Presentation of the adopted financial statements and the management report and of the consolidated financial statements and the Group management report as of 31 December 2006, as well as of the report of the Supervisory Board on the 2006 business year 2

3 Report of the Managing Board Herbert Stepic, CEO

4 An Experienced Management Team (I) Herbert Stepic, CEO Human Resources & Training Communications Internal Audit Legal & Compliance Martin Grüll, CFO Investor Relations Controlling & Accounting Treasury Portfolio Management Risk Management Heinz Wiedner, COO Process- & Productivity Management Organisation & Project Office Group IT Shared Service Centres & Country Coordination 4

5 An Experienced Management Team (II) Aris Bogdaneris, Retail Consumer Banking SE Business Products & Marketing Sales & Distribution Affluent Banking Peter Lennkh, Corporate & Regions Corporates Regional Office Corporate Relationships & Banking Alliances Product Development Leasing Real Estate Business 5 Rainer Franz, Board Member Training & Executive Development (CEO Tatra banka)

6 Share Price Development In 2006: 107.9% growth in value Between IPO and 31 May 2007: 257.5% growth in value Feb/07 Mar/07 Apr/07 May/07 Index base = (issue price) Apr/05 May/05 Jun/05 Jul/05 Aug/05 Sep/05 Oct/05 Nov/05 Dec/05 Jan/06 Feb/06 Mar/06 Apr/06 May/06 Jun/06 Jul/06 Aug/06 Sep/06 Oct/06 Nov/06 Dec/06 Jan/07 Raiffeisen International ATX (relative to RI) DJ EURO STOXX Banks (relative to RI)

7 Highlights 2006 Stock-price rises by nearly 108% in 2006 and by nearly 258% since IPO until 31 May 2007 in 2006 the stock outperformed ATX and Dow Jones Euro STOXX Banks Market capitalization of nearly 16 bn at 31 December 2006, one of the Top-500 listed companies Record profit of 1,182 mn (including one-off effects from the sales of Raiffeisenbank Ukraine 486 mn and the stake in Bank TuranAlem 102 mn) Balance-sheet total increases by 37% to 56 bn 7

8 International Recognition in the Public 8

9 Highlights 2006 Branch expansion to 2,848 business outlets, 405 more compared to yearend 2005 Number of customers grows to 12.1 mn at the end of 2006; 2.4 mn more compared to year-end 2005 Substantial growth of the distribution network in Russia due to the acquisition of Russian Impexbank (203 branches and 400 distribution outlets) Purchase of Czech ebanka strengthens position in the Czech market 9

10 RI The Leading Pure Play CEE Banking Group Market position Unique network of banks and leasing companies in 16 markets Top 3 bank by assets in 8 markets; in two of them No.1 bank Strong and well-known brand "Raiffeisen Growth 40% growth of balance-sheet total in 10 years 12.1 mn customers at the end of 2006 Profitability Pre-tax return on equity in 2006: 27.3% (excl. one-off effects) Cost efficiency: cost/income ratio of 59.1% at year-end 2006 Strategy Clear focus on middle market and retail customers Growth drivers Southeastern Europe and CIS 10

11 Focus on Attractive CEE Markets RI well positioned in CEE region Customers > 12 mn Business Outlets > 2,800 Employees > 52,000 Total Assets Split by Regions CE 41% Commonwealth of Independent States (CIS) Central Europe (CE) SEE 34% Balance-sheet total: 56bn CIS 25% Southeastern Europe (SEE) all figures at 31/12/

12 Strong and Sustainable Growth Potential in CEE Growth Rate of Nominal GDP e p.a. CIS 14.3% SEE 10.9% CE 8.1% Eurozone (EU-13): 4.4% Source: Raiffeisen Research 12

13 Dynamic and Continuous Network Expansion Hungary Poland Czech Republic Bulgaria Russia Romania Serbia Successful greenfield expansion Slovakia Croatia Ukraine complemented by targeted and profitable acquisitions. Bosnia and Herzegovina Slovenia Kosovo Belarus Ukraine Russia Romania Albania Czech Republic 13

14 Overview of the Purchase of the Russian Impexbank Signing took place on 31 January Impexbank was consolidated to Raiffeisen International at the beginning of May 2006 Purchase price US$ 563 mn At the time of the purchase 750,000 private customers as well as small and medium customers Country-wide network of 203 branches and 400 sales outlets Merger with Raiffeisenbank Russia is scheduled for the year 2007 After the merger, the bank will be named ZAO Raiffeisenbank 14

15 Ukraine An Important Future Market Raiffeisen International closed the sale JSCB Raiffeisenbank Ukraine at a price of 650 mn on 21 November 2006 Balance-sheet total of Raiffeisenbank Ukraine was 1.6 bn at the time of deconsolidation late September 2006 One-off gain of 486 mn has been entered into the accounts of the fourth quarter Save on merger costs and accelerated transformation of Raiffeisen Bank Aval With a balance-sheet total of 4.3 bn, Raiffeisen Bank Aval is the second-largest bank in Ukraine. In over 1,300 business outlets it services approximately 4 mn customers. 15

16 Czech Republic Acquisition Strengthens Position in Retail-Market Purchase of 100% of the shares in ebanka in July 2006 at a price of 130 mn Number of customers increases by 70% to approximately 310,000 as a result of the acquisition 115 business outlets in total at year-end 2006 (Raiffeisenbank 53, ebanka 62) Focus on business with private customers as well as business with small and medium enterprises 16

17 Outlook We expect a consolidated profit of at least 700 million for 2007 For the period to 2009, we anticipate annual growth of our balance sheet total by at least 20 per cent. The largest increases should continue to come from the CIS despite the absence of Raiffeisenbank Ukraine We forecast a return on equity (ROE) before tax of more than 25% for the year The cost/income ratio is expected to be below 58%. We have set a target for the risk/earnings ratio of about 15% 17

18 Report of the Managing Board Martin Grüll, CFO

19 Strong Organic Growth Total Assets in bn Total assets increase by 37% to 55.9 bn 84% of the increase derives from organic growth acquisitions organic growth 19

20 Combined with High Profitability Consolidated Profit in mn Profit excluding one-off effects increases by 55% to 594 mn Earnings per share increase from 2.97 (2005) to 4.17 (excl. one-off effects) +55% per year * * excluding one-off effects 20

21 Income Statement in mn * Growth Net interest income 1,202 1, % Provisioning for possible loan losses (167) (309) 84.7% Net commission income % Trading profit % General administrative expenses (1,163) (1,694) 45.7% Profit before Tax % Consolidated Profit (after minorities) % * excl. one-off effects 21

22 Growing Profit in All Regions Regional Segment Breakdown of Profit before Tax (2005) Regional Segment Breakdown of Profit before Tax (2006)* Commonwealth of Independent States (CIS) 27% Central Europe (CE) 40% Commonwealth of Independent States (CIS) 33% Central Europe (CE) 35% 151 mn 230 mn 291 mn 316 mn 188 mn 285 mn Southeastern Europe (SEE) 33% Total 569 mn Southeastern Europe (SEE) 32% Total 891 mn *excl. one-off effects 22

23 Rapid Growth in the Retail-Segment by Number of Customers Number of customers in mn % per year

24 .and by Profits Profit in the Retail-Segment in mn 124%

25 Profit Contribution of the Business Segments Business Segment Breakdown of Profit before Tax 2005 Retail Customers 21% 118 mn Treasury, Participations and Others 20% 114 mn Business Segment Breakdown of Profit before Tax 2006* Retail Customers 30% 264 mn Treasury, Participations and Others 18% 160 mn 337 mn 467 mn Corporate Customers 59% Total 569 mn Corporate Customers 52% Total 891 mn *excl. one-off effects 25

26 Highlights of the 1st Quarter 2007 Record consolidated profit of mn up by 55.0% year-on-year Improved ROE before tax of 25.5% Balance sheet total exceeds 59 bn, a plus of 6.7% compared to year-end 2006 and a gain of 42.0% year-on-year Profit of the retail segment rises by 118% on the comparable period Cost/income ratio improves from 58.4% to 57.2% year-on-year 26

27 Thank you for your attention!

28 Disclaimer Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue and similar expressions identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and the development of the industries in which we compete to differ materially from those expressed or implied by the forward-looking statements contained herein. These factors include, among others: (i) our ability to compete in the regions in which we operate; (ii) our ability to meet the needs of our customers; (iii) our ability to integrate our acquisitions or to complete acquisitions or other projects on schedule; (iv) uncertainties associated with general economic conditions particularly in the CEE; (v) governmental factors, including the costs of compliance with regulations and the impact of regulatory changes; (vi) the impact of currency exchange rate and interest rate fluctuations; and (vii) other risks, uncertainties and factors inherent in our business. We do not intend, and do not assume any obligations, to update forward-looking statements set forth herein. This document does not constitute an offer of securities, nor a solicitation for an offer of securities, nor marketing or sales activity for such securities. We have exercised utmost diligence in the preparation of this presentation and checked the data contained therein. However, rounding, transmission, printing, and typographical errors cannot be ruled out. Kiev 28