KB prezent. angl - Komerční banka

Restructuring process
The restructuring process of the financial group continued in 2003. Komerční banka made progress in strengthening the
position of the companies whose activities are considered essential to its business strategy, and in its search for a strategic
partner or for another way of making the operations of the companies outside this core group more effective.
In comparison with 2002, the co-operation was intensified between KB Financial Group companies and specialised
companies within Société Générale – especially Société Générale Asset Management in the field of asset management and
SOGECAP in the sphere of insurance. In 2003, part of this co-operation focused on expanding the range of products of
Komerční pojišťovna and Investiční kapitálová společnost KB.
The ongoing restructuring process within the KB financial group was particularly visible among the companies which
Komerční banka decided to sell to strategic partners in order to increase their and its own efficiency.
In 2003, Komerční banka entered into co-operation with Franfinance S.A., a subsidiary of Société Générale, in order to expand
the range of consumer lending in the Czech Republic. In September 2003, the Bank concluded an agreement to increase the
share capital of Franfinance Cosumer Credit, s. r. o., formerly a 100% subsidiary of Franfinance S.A., and therefore became
the majority owner with a stake of 51%. Because the increase in the share capital had not been entered in the Commercial
Register as at 31 December 2003, the Bank did not report this interest in its financial statements for the full year of 2003.
CAC Leasing and CAC Leasing Slovakia
In June 2003, Komerční banka sold its share in CAC Leasing and CAC Leasing Slovakia to Bank Austria Creditanstalt Leasing,
a 100% subsidiary of Bank Austria Creditanstalt, and the second shareholder of the two companies. Komerční banka will
continue to offer leasing products on the Czech and Slovak market in co-operation with companies of the Société Générale
Group which are active on these markets. These are Franfinance Leasing, which specialises in leasing for corporate
customers, and ALD Automotive, which concentrates on car fleet financing not only through financial leasing, but also
through a broad range of operational leasing services. The sale of these two companies had a positive impact on the Bank’s
financial performance in 2003.
MUZO
In December 2003, Komerční banka concluded a contract for the sale of its share in MUZO belonging to the KB Financial
Group to the company Global Payments Group, an important provider of services in the field of the electronic processing of
payments for individuals, businesses, financial institutions and government agencies. The KB’s objective was to find a longterm
partner for MUZO who would provide MUZO with an expert backdrop and would develop MUZO into a regional leader in
the electronic processing market. Komerční banka is convinced that the Global Payments Group fulfils these requirements,
and that it will not only improve the quality of the services provided by MUZO but, thanks to the expansion of the client base,
it will also ensure economies of scale for all MUZO clients. This will have a positive impact on the quality of the services
provided to the clients of Komerční banka. The sale of MUZO was completed in February 2004 and will have a positive impact
on the financial results of the Bank in 2004.
Reflexim
After internal restructuring, the sale of Reflexim took place in June 2003 to Sodexho společné stravování a služby.
The purpose of this sale was to transfer support activities that are not paramount for the operation of the Bank (i.e. facility
management, car fleet maintenance, etc.) to a reliable partner able to ensure the high quality of these services. A contract on
the provision of support services has been concluded with the new owner.