Warburg German Ideas Day
Dr. Immo Querner, CFO
19 November 2014
Talanx - Key Investment Highlights
Global insurance group with leading market positions and strong German roots
Leading and successful B2B insurer
Focus on long-term increase in value by sustainable and profitable growth
Dedication to focus on insurance rather than market risks
Commitment to continuously fulfill a „AA“ capital requirement by Standard &
Poor‘s
Target to achieve Group net income of at least €700m in 2014. Target for at
least €700m in 2015 despite material increase in large-loss budget
Dedication to pay-out 35-45% of IFRS earnings to shareholders
2
Warburg German Ideas Day, 19 November 2014
I
Talanx in a nutshell
II
Outlook and targets
Appendix
3
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell – A global insurance player
Location overview in Primary and in Reinsurance
2013
2000
GWP split (Primary/Reinsurance): 44% / 56%
Employees (Germany/abroad): 4,539 / 1,511
Countries with local presence
GWP split (Primary/Reinsurance): 53% / 47%
Employees (Germany/abroad): 11,302 / 10,227
Branch / office location Primary Insurance
Branch / office location Reinsurance
Global networks in Industrial Lines and Reinsurance. Leading positions in retail target markets
4
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell – Among the leading European insurance groups
Top 10 European insurers
Top 10 German insurers
European insurers by global GWP (2013, €bn)
German insurers by global GWP (2013, €bn)
Allianz
103.4
Munich Re
51.1
Debeka1
Vk Bayern
HUK1
AXA
85.5
Generali
28.2
R+V
103.4
Allianz
66.1
51.1
Munich Re
12.8
39.1
Zurich
9.3
Prudential2
7.2
36.0
28.2
5.6
Signal Iduna1
5.5
CNP
Gothaer1
4.2
Crédit Agricole
26.4
W&W
3.9
Aviva
26.0
Figure of 2012
Gross premiums earned
Source: SNL Financial, annual reports
Listed
27.7
1
2
insurers
Third-largest German insurance group with leading position in Europe and strong roots in
Germany
5
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell - Shareholders and divisions
V.a.G.
Free float
14.5 %1
Industrial Lines
Lead insurer of choice
Extremely strong
home market position,
i.e. lead mandates
with most German
DAX companies and
strong position with
German Mittelstand
Bluechip client base
in Europe
79.0 %
Retail Germany
Highly effective
network of distribution
partners
Market leader in
bancassurance
Market leader in
employee affinity
business
Leading provider of
corporate pension
solutions
Retail International
Focused exposure to
CEE and LatAm (#2
insurer in Poland2, #6
in Brazilian motor3)
Attractive rates of
organic growth
Experienced
underwriter
in motor
Focused M&A track
record
1 Including
employee shares
Combined ranking based on November 2013 data of Polish regulator as per local GAAP
3 According to Siscorp based on local GAAP
4 Based on A.M. Best ranking (September 2012)
5 Based on S&P ranking by average RoE 2002-2010 and also number 1 by average RoE as per KPMG 2012
2
Integrated insurance group with leading market positions in all segments
6
Warburg German Ideas Day, 19 November 2014
6.5 %
Reinsurance
Non-Life
Life/Health
Hannover Re – world
#3 reinsurer by GWP4
Well diversified
between life/non-life
and geographically
Consistently amongst
sector leaders on
profitability5
Superior underwriting
know-how
Talanx in a nutshell – Strategic group pillars
Focus of the Group is on long-term
increase in value by sustainable and profitable growth
and vigorous implementation of our B2B-expertise
Profit target
Capital
management
RoE1>∅ TOP20
European
insurers
Fulfill S&P “AA”
capital
requirement
RoE1≥risk-free
interest rate2
+750bps
Efficient use of
available
financing
instruments
Risk management
Growth target
Generate positive
annual earnings
with a probability
of 90%
50% of primary
GWP from
foreign
operations
Continuous
development and
promotion of own
workforce
Sufficient capital
to withstand
at least an
aggregated
3,000-year shock
Selective
profitable growth
in Retail
Germany and
Reinsurance
Individual
responsibility and
entrepreneurial
spirit
Investment risk
≤50%
1
2
In accordance with IFRS
Risk-free rate is defined as the 5-year rolling average of the 10-year German government bond yield
Group and divisional strategies define goals and actions to be taken
7
Warburg German Ideas Day, 19 November 2014
Human resource
policy
Talanx in a nutshell - Industrial Lines
Key figures
Share in 2013 group GWP1
2013 geographic split (GWP)
17%
46%
54%
Key financials (€m)
Gross written premium
3,835
3,128
3,213
+3%
Net premium earned
1,744
1,345
1,401
+4%
Net underwriting result
(43)
(93)
(66)
n/m
Net investment income
240
167
209
+25%
Operating result (EBIT)
129
50
125
+148%
102.4
106.9
104.7 (2.2 pts)
5.1
2.0
5.8 +3.8 pts
Combined ratio
83%
Germany
International
FY2013 9M 2013 9M 2014 Change
(net)2
Return on Equity in %
in %
Recent trends
GWP slightly down in Q3 2014
by -1.8%, while growing by 2.7% y/y in first 9 months 2014 (curr.-adj: +3.8%)
Sustainable growth resulting from international activities, incl. Northern America and Asia Pacific
Self-retention in 9M 2014 at 50.5% (9M 2013: 45.7%) - well on track to reach the FY2014 target of ca. 50%, despite
€115m reinstatement premium (€74m in Q3 2014 alone)
Reinstatement premium also negatively impact the expense ratio (Q3 2014 effect of ~3%pts) and loss ratio. Key
driver of the loss ratio are significant large losses, e.g. flood in Michigan (USA) and various man-made losses, such
as a major industrial explosion near Bremen
1
2
Based on total GWP adjusted for 50.2% share in Hannover Re
Including income from interest on deposits
Talanx is a leading European industrial lines insurer with global ambitions
8
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell - Retail Germany
Key figures
Share in 2013 group GWP1
32%
2013 business mix (GWP)
Key financials (€m)
22%
Gross written premium
6,954
5,196
5,079
(2%)
Net premium earned
5,605
4,036
3,917
(3%)
Net underwriting result
(1,515)
(1,130)
(1,264)
n/m
Net investment income
1,786
1,319
1,430
+8%
Operating result (EBIT)
161
111
119
+7%
102.4
101.6
101.7 +0.1 pts
3.0
3.2
3.6 +0.4 pts
78%
Life
Non-life
Combined ratio (net)2 in %
Return on Equity in %
FY2013 9M 2013 9M 2014 Change
Recent trends
In line with targets, slight reduction in GWP, primarily reflecting a decline in traditional life business and a
profitabilisation of the motor line
Loss ratio close to normalized level, while cost ratio impacted by additional pre-seasonal service capacities
Decline in underwriting results largely due to higher RfB contribution on the back of higher realised capital gains to
finance ZZR
~75% of anticipated 2014 ZZR allocation booked (forecast of ~€355m for FY2014; FY 2013: €313m, both according
to HGB). Total ZZR stock expected to rise to ~€1.1bn-level until year-end 2014
Higher ordinary capital gains contribute to profit growth
1
Based on total GWP adjusted for 50.2% share in Hannover Re
2
Including interest income on funds withheld and contract deposits; net, property/casualty only
Strong German retail insurance business – more than 80% from B2B distribution channels (2013)
9
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell - Retail International
Key figures
Share in 2013
group GWP1
19%
2013 business
split (GWP)
34%
2013 geographic
split (GWP)
21%
51%
66%
Non-Life
Life
28%
CEE/CIS2
LatAm2
Western Europe2
Key financials (€m)
FY2013 9M 2013 9M 2014 Change
Gross written premium
4,220
3,133
3,307
+6%
Net premium earned
3,513
2,597
2,820
+9%
Net underwriting result
32
23
(6)
n/m
Net investment income
284
214
241
+13%
Operating result (EBIT)
185
157
164
+4%
Combined ratio (net) in %
95.8
95.8
96.5 +0.7 pts
5.9
7.2
Return on Equity in %
7.2
-
Recent trends
9M 2014 GWP growth of 5.5% (curr.-adj.:+10.0%), while currency-effects slighly fading out: Q3 2014 growing strong at 7.1% (+8.5%)
Brazil and Mexico gaining significant growth momentum in Q3 2014
Slight increase in segment CoR in Q3 2014 by 1%pt. due to a severe bus accident insured by Warta (effect on segment CoR of
0.4%pts) and currency-effect (1.4%pts; compensated in „other result“)
Turkey continues its positive trend (9M 2014 EBIT: €1.9m), Mexico and TU Europa with CoRs well below the 100%-level
Increase in asset base and higher interest rates in Brazil support improvement in investment income
1 Based
2
on total GWP adjusted for 50.2% stake in Hannover Re
CEE/CIS including Turkey and Russia; LatAm including Mexico; Western Europe including Italy, Austria, Liechtenstein and Luxembourg
Focus on major growth markets in Latin America and CEE
10
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell - Reinsurance
Key figures
Share in 2013 group GWP1 GWP development (total, €bn)
Non-Life
Life / Health
Key financials (€m)
32%
13.8
FY2013 9M 2013 9M 2014 FY2013 9M 2013 9M 2014
14.0
12.1
Gross written premium
7,818
5,956
6,060
6,145
4,582
4,644
Net premium earned
6,866
5,093
5,104
5,360
4,024
3,861
Net investment income
811
599
666
610
460
461
Operating result (EBIT)
1,097
833
868
139
164
237
94.9
95.0
95.3
-
-
-
Comb.Ratio2
2011
2012
in %
2013
Recent trends
Non-Life
9M 2014 GWP up by 1.7%y/y (adj. for currency effects: +3.2%)
with growth effects mainly from China and Southeast Asia. NPE
+0.2% y/y (curr.-adj.:+1.5%)
Large losses of €242m (4.7% of NPE) below budget (€491m for
9M 2014)
Conservative loss reserving policy maintained for the large loss
budget
Net investment income increased despite the low yield
environment.
„Other income and expenses“ influenced by positive currency
effects in particular in Q3 2014
EBIT margin2 of 17.0% (9M 2013: 16.3%) is well above target
Reinsurance
Return on Equity in %
FY2013
9M 2013
9M 2014
15.9
15.2
15.4
Life / Health
9M 2014 GWP: +1.4% (+2.6% adj. for currency effects), mainly from
Australia and Longevity BATs
Technical result improved significantly due to normalised result from
Australian disability business
Net investment income at expected level, minor negative impact from
ModCo derivatives
Other income improved due to f/x effects
Strong increase in EBIT1 by ~45%
9M 2014 EBIT margins1 in financial solutions/longevity business as well
as in mortality and morbidity business ahead of targets
1
2
Based on total GWP adjusted for 50.2% share in Hannover Re
EBIT and EBIT margins reflect a Talanx Group view
Hannover Re is one of the largest and most profitable reinsurers globally
11
Warburg German Ideas Day, 19 November 2014
Talanx in a nutshell – Sources for growth
International growth
Industrial Lines
Increase retention
Retail Germany
Lever successful bancassurance
Elimination of cost disadvantages
Growth in selected emerging markets
Retail International
Role-out of best practise examples
Reinsurance
Efficient cycle management
Expansion into emerging markets
12
Warburg German Ideas Day, 19 November 2014
I
Talanx in a nutshell
II
Outlook and targets
Appendix
13
Warburg German Ideas Day, 19 November 2014
Outlook for Talanx Group 20141
Gross written premium2
+2-3%
Return on investment
≥ 3.4%
Group net income
≥ €700m
Return on equity
9-10%
Dividend payout ratio
35 - 45% target range
1
The outlook is subject to a thorough assessment of the protracted low interest rate environment and of the Life Insurance Reform Act
(“LIRA”) impact on German retail activities
2 On divisional level, Talanx expects gross written premium growth of +3-5% in Industrial Lines, -(1-2)% in Retail Germany, +4-8% in
Retail International and a flat to low single-digit growth rate in Reinsurance
Targets are subject to no large losses exceeding budget (cat),
no turbulences on capital markets (capital), and no material currency fluctuations (currency)
14
Warburg German Ideas Day, 19 November 2014
IV
Targets for Talanx Group 20151
Gross written premium2
+1-3%
Return on investment
> 3.0%
Group net income
≥ €700m
Return on equity
~ 9%
Dividend payout ratio
35-45% target range
1
2
The targets are based on an increased large loss budget of €290m (from €185m) in Primary Insurance
On divisional level, Talanx expects gross written premium growth of +1-3% in Industrial Lines, unchanged premium in Retail
Germany, +6-8% in Retail International and a flat to low single-digit growth rate in Reinsurance
Targets are subject to no large losses exceeding budget (cat),
no turbulences on capital markets (capital), and no material currency fluctuations (currency)
15
Warburg German Ideas Day, 19 November 2014
I
Talanx in a nutshell
II
Outlook and targets
Appendix
16
Warburg German Ideas Day, 19 November 2014
Appendix - FY2013 target achievement
Return on Investment
GWP growth
in €bn
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
+12.6%
30.0
25.0
+10.1%
+9.3%
+3.6%
2010
2011
+5.6%
20.0
4.2%
3.7%
4.0%
4.3%
15.0
4.0%
10.0
5.0
0.0
2009
2010
2011
2012
2013
2013 Outlook Rol > 3.5%
2009
2012
2013
2013 Outlook GWP growth ≥4%
Net income and Payout
Return on Equity
in mn €
target ROE
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
11.8%
10.0%
10.0%
10.6%
4.5%
2009
2010
2011
2012
2013 Outlook RoE ≥ 750 bps + risk-free1
2013
900
800
700
600
500
400
300
200
100
0
(€1.05
p.s.)
626
485
2
17
Warburg German Ideas Day, 19 November 2014
750
515
216
2009
2010
2011
2012
2013 Outlook Net income ~€700m; pay-out ratio 35-45%2
Risk-free rate is defined as the 5-year rolling average of the 10-year German government bond yield (ROE target 2013: 9.8%)
pay-out ratio 2013: 39.8% (2012: 42.1%)
Note: figures restated on the base of IAS8; 2013 Outlook reflects increased targets as presented in Aug 2013
1
(€1.20
p.s.3)
2013
Appendix – 9M 2014 results – Key financials
Summary of 9M 2014
€m, IFRS
Comments
9M 2014 9M 2013
Change
Gross written premium
21,732
21,380
+2 %
Net premium earned
17,131
17,103
+0 %
Net underwriting result
(1,353)
(1,228)
n/m
Net investment income
2,996
2,814
+6 %
Operating result (EBIT)
1,444
1,376
+5 %
530
528
+0 %
Net income after minorities
Key ratios
9M 2014 9M 2013
Change
Combined ratio non-life
insurance and reinsurance
97.7%
97.6%
0.1%pts
Return on investment
4.0%
4.0%
0.0%pts
Balance sheet
9M 2014 FY2013
Change
Investments under
own management
94,053
86,310
+9 %
Goodwill
1,108
1,105
+0 %
Total assets
144,845
132,793
+9 %
Technical provisions
99,643
91,717
+9 %
Total shareholders' equity
12,562
11,124
+13 %
Shareholders' equity
7,937
7,127
+11 %
Note: numbers adjusted on the basis of IAS8
Bottom-line result slightly ahead of 9M 2013
18
Warburg German Ideas Day, 19 November 2014
GWP growth in line with 2014 Outlook, still
dampened by currency effects. All segments
apart from Retail Germany with positive growth
Slightly lower growth in net premium earned
reflects lower self-retention in Life&Health
Reinsurance – while self-retention ratio in
Industrial Lines is up by 5%pts
Return on investment at 4.0%, well above the
2014 Outlook
9M 2014 net income (€530m) exceeds 9M 2013
level, even before adjusting for the base effect of
partial disposal of SwissLife stake (~€100m)
Shareholders’ equity up to €7,937m, or €31.40
per share. Solvency I ratio up to 240.5%
(FY2013: 210.2%)
Appendix - Large losses1 in 9M 2014
Primary
insurance
(€m, net)
Snowstorm, Japan
February 2014
Earthquake, Chile
April 2014
Storm, USA
June 2014
Storm “Ela”, Germany,
Belgium, France
June 2014
Hail, Canada
August 2014
Flood, USA
August 2014
Total NatCat
Aviation
0.8
48.8
Reinsurance
Talanx Group
10.2
10.2
6.1
6.9
8.1
8.1
43.9
92.7
11.5
11.5
30.0
30.0
79.6
79.8
159.4
7.5
126.4
133.9
161.4
36.0
197.4
Credit
Transport
Fire/Property
Other
10.0
Total other large losses
178.9
162.4
341.3
Total large losses
258.5
242.2
500.7
Impact on Combined Ratio
6.1% pts
4.7% pts
5.4% pts
Total large losses (9M 2013)
220.8
446.7
667.5
1definition
19
10.0
„large loss“: in excess of €10m gross in either Primary insurance or Reinsurance
Warburg German Ideas Day, 19 November 2014
Net burden from
large losses of
overall €501m in 9M
2014 (9M 2013:
€668m)
Q3 net burden of
€113m in Primary
and €138m in
Reinsurance
Primary Insurance
affected by
significant amount of
man-made losses in
Industrial Lines
Reinsurance mainly
impacted by aviation
loss, but very well
within large loss
budget
Appendix - Solvency capital position
Solvency I capital position
Comments
(€bn)
202%
225%
210%
241%
As of 30 September 2014, available funds
include €1.6bn of subordinated debt2
9.4
8.4
8.2
Goodwill of €1.1bn as of 30 September 2014
(relative to shareholders’ equity excl. minorities
of €7.9bn)
6.8
3.7
3.4
2011
2012
Available funds
Solvency I
1
2
Talanx has extensive experience in innovative
capital management
3.9
2013
3.9
9M 2014
Solvency capital requirements
margin1
Talanx Group based on the solvency of HDI V.a.G. (HDI V.a.G. is the relevant legal entity for the calculation of group solvency from a regulatory perspective)
€1.6bn of the Group’s total subordinated debt (€2.7bn) are eligible for Solvency I capital (after accounting for minority interest and capped by regulatory thresholds)
Solid solvency and high-quality capital with relatively low goodwill supporting optimal balance
sheet strength
20
Warburg German Ideas Day, 19 November 2014
Appendix - Rating overview
Current financial strength ratings
Standard & Poor’s
Grade
last update
Talanx Group1
Talanx Primary Group2
last update
Hannover Re subgroup3
Outlook
A. M. Best
Grade
30/06/14
-
Stable
30/06/14
AA–
Outlook
16/05/14
-
A+
rating of Talanx Primary Group
Stable
A
Stable
-
-
22/05/14
A+
Modifiers
Anchor rating a+
Business Risk
Profile
Financial Risk
Profile
Modifiers
Strong
Very Strong
Neutral
IICRA 4)
Capital &
Earnings
ERM
Intermediate
Risk
Very Strong
Strong
Competitive
Position
Risk Position
Management &
Governance
Strong
Intermediate
Risk
Satisfactory
Risk Position
Liquidity
Strong
Exceptional
Stable
The designation used by A. M. Best for the Group is “Talanx AG and its leading non-life direct insurance operation and its leading life insurance operation”
This rating applies to the core members of Talanx Primary Group (the subgroup of primary insurers in Talanx Group)
3 This rating applies to Hannover Re and its major core companies. The Hannover Re subgroup corresponds to the Talanx Reinsurance segment
4 Insurance Industry and Country Risk Assessment
1
2
Financial strength underpinned by S&P and A.M. Best ratings
21
Warburg German Ideas Day, 19 November 2014
Appendix - Focus on insurance risk
Risk components of Talanx Group1
1%
8%
16%
Comments
Other risk
Operational risk
Further life risk
Total market risk of 37%, of solvency capital
requirements, which is comfortably below the
50% limit
Risk capacity priority for insurance risk
38%
Non-life risk 2
Non-life is the dominating insurance risk
category, comprising premium and reserve risk,
NatCat and counterparty default risk
Equities ~1% of investments under own
management
37%
Market risk
3
GIIPS sovereign exposure 1.7% of total assets
(9M 2014)
Talanx Group
Figures show approximate risk categorisation, in terms of solvency capital requirements,
of the Talanx Group after minorities, after tax, post diversification effects as of 2013
2 Includes premium and reserve risk (non-life), net NatCat and counterparty default risk
3 Refers to the combined effects from market developments on assets and liabilities
1
Market risk sensitivity (limited to less than 50% of solvency capital requirement)
is deliberately low
22
Warburg German Ideas Day, 19 November 2014
Appendix – B2B distribution as a key differentiator
Linkage between different Group segments
Industrial Lines
Retail Germany
Excellence in B2B2C channels1
Bancassurance
Brazil
B2B2C
Automotive
Core value
proposition:
B2B competence
Retail
Brokers
B2B2C
Retail International
1
Reinsurance
Employee
affinity
business
Samples of clients/partners
Superior service of corporate relationships lies at heart of our value proposition
23
Warburg German Ideas Day, 19 November 2014
Industrial
Appendix - HDI V.a.G. history and structure
Overview
V.a.G.
HDI V.a.G. is a mutual insurance company and
majority-owner of the holding company Talanx
AG
The organisational setup reflects the historic
roots of HDI, an association of important
companies of the German industry that offers
mutual insurance cover
Approx. 0.8m members of HDI V.a.G.
Alignment of interests of HDI V.a.G. and
Talanx Group through
- Providing efficient and reliable insurance to
mutual members at market rates, often
syndicate-based
- Same decision makers: Mr Haas, Dr
Hinsch, Dr Querner
- HDI V.a.G. has no other investments
besides Talanx and is interested to further
strengthen and enable Talanx to provide
stable insurance capacity to industrial
clients
- Talanx and HDI V.a.G. committed to capital
market oriented dividend policy
24
Warburg German Ideas Day, 19 November 2014
History
1903
Foundation as ‘Haftpflichtverband der
deutschen Eisen- und Stahlindustrie‘ in
Frankfurt
1953
Companies of all industry sectors are able
to contract insurance with HDI V.a.G.
1966
Foundation of Hannover Rückversicherungs AG
1991
Diversification into life insurance
1994
IPO of Hannover Rückversicherung AG
1998
Renaming of HDI Beteiligungs AG to
Talanx AG
2001
Start transfer of insurance business from
HDI V.a.G. to individual entities
2006
Acquisition of Gerling insurance group by
Talanx AG
2012
IPO of Talanx AG
2014
Listing at Warsaw Stock Exchange
Talanx Investor Relations
Financial Calendar
23 March 2015
Annual Report 2014
7 May 2015
AGM 2015
11 May 2015
Interim Report Q1 2015
12 August 2015
Interim Report 6M 2015
12 November 2015
Interim Report 9M 2015
25
Warburg German Ideas Day, 19 November 2014
Contact
Talanx AG
Riethorst 2
30659 Hannover
Germany
[email protected]
Carsten Werle, CFA
Phone: +49 511 3747 2231
[email protected]
Marcus Sander, CFA
Phone: +49 511 3747 2368
[email protected]
Wiebke Erler
Phone: +49 511 3747 2435
[email protected]
Christian Marx
Phone: +49 511 3747 2291
[email protected]
Disclaimer
This presentation contains forward-looking statements which are based on certain assumptions, expectations and opinions of the
management of Talanx AG (the "Company") or cited from third-party sources. These statements are, therefore, subject to certain known
or unknown risks and uncertainties. A variety of factors, many of which are beyond the Company’s control, affect the Company’s
business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or
uncertainties materialize, actual results, performance or achievements of the Company may vary materially from those expressed or
implied as being expected, anticipated, intended, planned, believed, sought, estimated or projected in the relevant forward-looking
statement.
The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does the
Company accept any responsibility for the actual occurrence of the forecasted developments. The Company neither intends, nor
assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those
anticipated.
Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as
having been adopted or endorsed by the Company as being accurate. Presentations of the company usually contain supplemental
financial measures (e.g., return on investment, return on equity, gross/net combined ratios, solvency ratios) which the Company
believes to be useful performance measures but which are not recognised as measures under International Financial Reporting
Standards, as adopted by the European Union ("IFRS"). Therefore, such measures should be viewed as supplemental to, but not as
substitute for, balance sheet, statement of income or cash flow statement data determined in accordance with IFRS. Since not all
companies define such measures in the same way, the respective measures may not be comparable to similarly-titled measures used
by other companies. This presentation is dated as of 13 November 2014. Neither the delivery of this presentation nor any further
discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no
change in the affairs of the Company since such date. This material is being delivered in conjunction with an oral presentation by the
Company and should not be taken out of context.
26
Warburg German Ideas Day, 19 November 2014