Financials & Business Results AllianzGI Annual Press Conference
Marna Whittington
Chief Operating Officer London, February 29, 2008
AllianzGI Annual Press Conference 2008 – Marna Whittington
2007 was another year of profitable growth for AllianzGI despite a challenging market environment
DEVELOPMENT OF OPERATING PROFIT & NET INCOME
EUR million Operating Profit
+8.8%
AllianzGI
CAGR
Net Income
CAGR
+42.0%
1.276 1.117
1.322 470 395
+3.6%
233
+19.0%
2005
2006
2007
2005
2006
2007
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AllianzGI Annual Press Conference 2008 – Marna Whittington
AllianzGI with solid double-digit profit growth on a currency adjusted basis
DEVELOPMENT OF OPERATING PROFIT
EUR million Operating Profit
CAGR* CIR (%)
AllianzGI
Operating Profit drivers 2007
+12.3%
1.418* 1.124* 1.117
+11.1%
+189 1.276
-144
1.322
1.276
1.322
58.3
57.3
58.4
2005
2006
2007
Operating Profit 2006
Revenues Expenses Δ 2007/06
Operating Profit 2007
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* In 2006 avg. fx-rates: USD/EUR 1.25573; contribution in USD ca. 75%
AllianzGI Annual Press Conference 2008 – Marna Whittington
AllianzGI increased its average net revenues and continued to invest in its future growth
NET REVENUE & COST DEVELOPMENT
Net Revenues (bps) 31.5 31.6 32.5
Operating Expenses (bps)
Share of functional costs (%)
Operating Earnings
13.2
13.5
13.5
18.3 Investment Management Operating Expenses
18.3 18.1 19.0
41 7.3
18.1
44 7.8
19.0
43 8.1
Client Service, Sales, Marketing Corporate Services
5.1 28
30 5.3
4.6 26
5.6 31
5.4 31
4.9 26
2005
2006
2007
2005
2006
2007
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AllianzGI Annual Press Conference 2008 – Marna Whittington
AllianzGI grew AuM in all regions; strong underlying growth masked by adverse effects from fx conversion
AuM DEVELOPMENT
EUR billion Third Party AuM 2007
% of bop AuM
AllianzGI
Third Party AuM by region*
CAGR (%)
AuM (YE 2006) Netflows Market effects Deconsolidation effects F/X effects AuM (YE 2007)
-8.2 +1.6
723 +11 +52
underl. growth: +8.8%
Total
597
664
56
725
64
+10.2 +12.0
Asia Pacific
51 390 430
+10.1
+7.2
US
355
-2 -59 725
218 231
Europe
191
+10.0
2005
2006
2007
* In 2007 spot fx-rates: USD/EUR 1.47210
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AllianzGI Annual Press Conference 2008 – Marna Whittington
AllianzGI maintains high level of productivity while growing capacity
DEVELOPMENT OF FTE AND KEY PRODUCTIVITY RATIOS*
2005-2007
Investment DistriMgmt. bution Corporate Services
FTE
#
Ø AuM per Ø FTE
EUR million
Net Revenues per Ø FTE
EUR thousand
Actual 2005 Actual 2006 Actual 2007
889 1.194
1.776
3,859
207
651
916 1.290
1.919
4,124 +12.6%
218 +11.8%
690
+16.7%
926 1.396
2.023
4,345
231
760
* In 2005 avg. fx-rates (USD/EUR 1.24428); adjusted for deconsolidation effects
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AllianzGI Annual Press Conference 2008 – Marna Whittington
Early anticipation of sub-prime crisis affected short-term Fixed Income performance in H1; net flows negatively impacted
DEVELOPMENT OF PERFORMANCE AND THIRD PARTY NET FLOWS
EUR billion, 2005-2007 Out-Performing AuM in %*
Target (70%)
FIXED INCOME
Net Flows
% of bop AuM
Out-performing AuM in % 1-year rolling
85 83 76 75 76 73 31 69 74
96
91
87
70,6
A05 A06 A07
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
AuM**
CAGR
31,0
511
+9.6%
+2.1
559
465
10,3
7,3
11,7 1,3 -7,2
2005 2006 2005
* On a 3-year rolling basis ** In 2005 spot fx-rates (USD/EUR 1.17970)
Q1
Q2
Q3
Q4
2007
2006
2007
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AllianzGI Annual Press Conference 2008 – Marna Whittington
Equity performance strong; net inflows lagging
DEVELOPMENT OF PERFORMANCE AND THIRD PARTY NET FLOWS
EUR billion, 2004-2007 Out-Performing AuM in %*
Target (70%)
EQUITY
59
70
79 Net Flows
% of bop AuM
6,1 2,0
AuM**
CAGR
0,0 -1,2 -1,1 -0,2
-0.1
133
153
+11.4%
165
-4,8
2005 2006 Q1 Q2 Q3 Q4
2007
2005
* On a 3-year rolling basis
2006
2007
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** In 2005 spot fx-rates (USD/EUR 1.17970)
AllianzGI Annual Press Conference 2008 – Marna Whittington
AllianzGI´s long-term track record meets targets
AllianzGI Targets Measurement
Over a full market cycle
Achievements 2002-2007
82 89 87 86
Product Quality
Top Quartile Investment Performance
73
3-year asset weighted out-performance≥ 70%
n.a.
2002 2003 2004 2005 2006 2007
7.6
5.4
6.0
12.0
5.2
1.6
Customer Loyalty
Top Quartile Client Satisfaction
65.8
∅ 3P net inflows ≥ 5%
43.2
27.5
31.3
37.1 11.4
2002
2003
2004
2005
2006
2007
CAGR 22%
Shareholder Value
Top Quartile Business Returns
Profit growth 10% p.a. CIR ≤ 65%
495
79.8
716
66.9
851
62.5
1,117
1,276
1,322
58.2
57.3
58.5
2002
2003
2004
2005
2006
2007
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AllianzGI Annual Press Conference 2008 – Marna Whittington
Takeaways
Another year of record earnings Continued strong investment performance Strong and diversified asset base Continued investment in future growth Impressive long-term business track record
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AllianzGI Annual Press Conference 2008 – Marna Whittington
Disclaimer
CAUTIONARY NOTE:
Any opinion expressed in this document, or the oral presentation accompanying it, is held as at the date of this document, and any data mentioned is correct as at that date. Both may be subject to change without notification. Nothing in this document or the oral presentation should be interpreted as investment or financial advice and should not be relied on. Any person who wishes to obtain advice should seek this from an independent financial adviser
CAUTIONARY NOTE REGARDING INVESTMENT PERFORMANCE DATA:
AllianzGI account-based, asset-weighted 3-year investment performance of third party assets vs. benchmark including all equity and fixed income accounts managed on a discretionary basis by equity and fixed income managers of AllianzGI (including direct accounts, Spezialfonds and CPMs of Allianz with AllianzGI Germany). For some retail funds the net of fee performance is compared to the median performance of an appropriate peer group (Micropal or Lipper; 1st and 2nd quartile mean out-performance). For all other retail funds and for all institutional accounts performance is calculated gross of fees using closing prices (revaluated) where appropriate and compared to the benchmark of each individual fund or account. Other than under GIPS, the performance of closed funds/accounts is not included in the analysis. Also not included: WRAP accounts and accounts of Caywood Scholl, AllianzGI Taiwan, AllianzGI Korea, AllianzGI France and AllianzGI Italy Issued by Allianz Global Investors AG
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