Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Merger or Acquisition (February 2008)
17 slides from Otp Bank Nyrt's merger presentation, Feb 11, 2008
Slide 1: CEE bancassurance partnership
CEE bancassurance partnership OTP Bank and Groupama to form Emerging Europe insurance partnership February 11, 2008 1
Slide 2: Presenters: Dr Sándor Csányi and Mr Jean Azéma
Dr Sándor Csányi Mr Jean Azéma Chairman and CEO CEO OTP Bank Groupama 2
Slide 3: OTP Bank and Groupama to form strong long term insurance partnership in Emerging Europe
OTP Bank and Groupama to form strong long term insurance partnership in Emerging Europe • Leading domestic insurer • Leading domestic bank • Innovative and wide offerings • #1 independent regional in products and services banking franchise • Multi-distribution experience • Superior growth strategy i
Slide 4: Summary of transaction and financial terms (1/2)
Summary of transaction and financial terms (1/2) • Partnerships to cover in the long run 9 countries of operations for OTP Bank i.e. Hungary, Bulgaria, Romania, Slovakia, Ukraine, Russia, Croatia, Serbia, Montenegro • 20 year renewable partnerships • Exclusivity: – OTP Bank will exclusively distribu
Slide 5: Summary of transaction and financial terms (2/2)
Summary of transaction and financial terms (2/2) • Mutual benefits for both partners: – Partners to reinforce their long term regional partnership – Further secure OTP Bank’s capital base – OTP Bank management incentive based on overall + bancassurance performance • Groupama acquires up to 8% in OTP
Slide 6: OTP Group serves over 10 million customers in 9 countries
OTP Group serves over 10 million customers in 9 countries OTP Group OTP Banka Slovensko (Slovakia) CJSC OTP Bank*** (Ukraine) Investsberbank*** (Russia) Bank branches* 1,432(1) Bank branches 90 Bank branches 94 Bank branches 156(1) Employees 30,532(2) Employees 769 Employees 2,973 Employees 6,854 Nu
Slide 7: OTP Group level regional strategy
OTP Group level regional strategy • OTP Bank seeks to build a diversified regional financial group, offering a full-scale of financial services via multiple channels in every country in which OTP Bank operates • OTP Bank follows customised strategies in each country aimed at achieving a stronger reg
Slide 8: Transaction rationale for OTP Bank
Transaction rationale for OTP Bank The sale of OTP Garancia meets three strategic objectives for OTP Bank: Creates a strong regional insurance partnership to benefit OTP Bank customers – Opportunity to engage with regional partner – Groupama will eventually partner with OTP Bank across the region –
Slide 9: Pro forma financial impact on OTP Bank
Pro forma financial impact on OTP Bank • OTP Bank will receive HUF 164 billion (approximately €617 million(1)) as total consideration for OTP Garancia and the 20 year bancassurance partnership • Subject to meeting business plan commission targets, OTP Bank can receive further upside through a purcha
Slide 10: Introducing OTP Garancia
Introducing OTP Garancia Non-life Life • Strong domestic Romania 2% Slovakia positions in Hungary Slovakia 1% 1% Bulgaria 43.6% 56.4% (#2 in Life and #3 in Bulgaria Non-life Life 1% 1% non-life) Hungary 98% • Existing operations in Hungary #2 3 satellite countries 96% #3 • Profitability indicators a
Slide 11: Groupama at a glance
Groupama at a glance • # 1 Mutual insurance A Solid Business Model An ambitious strategy group in France • A diversified multi-line and A presence on all multi-channel insurance insurance lines and group AAstrong brand a leading position multi network in 11distribution countries on most non-life • L
Slide 12: Groupama is accelerating its International development
Groupama is accelerating its International development International Operations with High Potential Revenues Latest Acquisitions (2006 GWP) 2006 - 2007 • In Turkey • Mainly present in stable European markets with – Basak Sigorta and Basak Emeklilik (June 2006): 5th exposure to higher growth potentia
Slide 13: Highly attractive macroeconomic and demographic fundamentals
Highly attractive macroeconomic and demographic fundamentals = significant growth opportunity for Groupama Nominal GDP and nominal GDP growth in selected CEE countries(a) (2006) 15% 11% 12% 13% 10% 17% 14% 10% 9% 11% 10% 10% • Significant 1,000 784 economic growth 400 potential 272 €bn 300 expected
Slide 14: The creation of a true pan-regional insurance platform
The creation of a true pan-regional insurance platform Hungary – OTP Garancia Hungary - Groupama Slovakia - OTP Garancia poist’ovna Since 1987 Since 2001 Since 2003 Insurance Branches 170 Insurance Branches 30 Insurance Branches 3 Insurance Agents 2,700 Insurance Agents 330 Insurance Agents 160 Empl
Slide 15: Bancassurance and traditional channels underpin a substantial regional distribution footprint
Bancassurance and traditional channels underpin a substantial regional distribution footprint Hungary Bulgaria Slovakia Romania Premiums of products sold through OTP Bank Distribution channels branches and as a proportion of total premium Number of agents 2,700** 200 160 900 income of OTP Garancia,
Slide 16: Groupama's regional expansion strategy
Groupama’s regional expansion strategy • Groupama aiming at entering new markets (e.g. Russia, Ukraine) alongside development of OTP’s banking franchise Groupama’s regional • Groupama also aiming at accelerating development in CEE region leveraging on the aspirations distribution capacities with OTP
Slide 17: Q&A Session
OTP Bank and Groupama to form Emerging Europe insurance partnership Q&A Session 17
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