Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (September 2012)
32 slides from Unicredit's debt investor presentation, September 2012
Slide 1: UniCredit Group Presentation to Fixed Income Investors
UniCredit Group Presentation to Fixed Income Investors September 2012
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, p
Slide 3: Agenda
Agenda Strategic Plan 2Q 2012 Results Liquidity & Funding Annex 3
Slide 4: UniCredit vision 2015
UniCredit vision 2015 A rock solid European commercial bank Strengthened core client franchises with a unique geographical spread, focused on diversified Western European countries and high growth CEE economies Strong balance sheet A sound capital base, further reinforced liquidity buffer, continued
Slide 5: UniCredit a well diversified pan-European Commercial Bank
UniCredit a well diversified pan-European Commercial Bank A unique positioning in mature Western European markets and fast growing CEE economies Austria (AA+ rating) RWA composition (%) Rank & Market Share #1 with c. 16% Loans (bn) 63.3 Direct Funding (bn) 66.4 Total = 447.7 bn Germany (AAA rating)
Slide 6: UniCredit Strategic Plan
UniCredit Strategic Plan The implementation is well on track as proven by several successful actions in all four pillars Action/Event Status vs Plan Vs Plan/ Expectation Capital Increase Completed = BALANCE Capital Efficiency Not included ▲ SHEET STRUCTURE Run-off portfolio On schedule = Liquidity /
Slide 7: Structure re-organization
Structure re-organization Countries more accountable and a simplified service model to the customers New organizational structure to be presented to the BoD by year-end and envisaged effectiveness from January 2013: From a divisional breakdown to a regional view in Italy, Germany, Austria and Poland
Slide 8: Agenda
Agenda Strategic Plan 2Q 2012 Results Liquidity & Funding Annex 8
Slide 9: Executive Summary
Executive Summary Balance-sheet repositioning and effective cost management in a very challenging environment Gross Operating Profit held up well thanks to strict cost control and resilient revenues. Net profit hit by weakening macroeconomic environment in Italy and across the regions Revenues only
Slide 10: Net Profit and Net Operating Profit
Net Profit and Net Operating Profit Profitability hit by weakening macroeconomic environment in Italy Strict cost control and resilient revenues offered a good buffer Net Profit (mln) Net Operating Profit (2) (mln) Buy-back(1) Net of Buy-back Buy-back(1) Net of Buy-back -81.5% -15.7% -56.1% 914 2,91
Slide 11: Net Operating Profit Breakdown
Net Operating Profit Breakdown Effective cost management coupled with resilient revenues Deteriorating credit environment in Italy impacted LLP Net Operating Profit Composition (mln) Net Operating Profit by region (mln) Buy-back Net of buy-back Western Europe Net of buy-back Buy-back CEE & Poland 1,
Slide 12: Volumes
Volumes Funding gap keeps improving Customer loans(1) (mln) Customer deposits (mln) -0.9% +0.6% +2.7% +2.8% 561,792 553,658 556,815 406,713 406,232 417,641 Western 472,681 459,220 +0.4% 460,926 Western 333,743 Europe 330,691 323,404 +97.4% +3.2% Europe CEE & CEE & 89,111 94,439 +1.5% 95,889 Poland 7
Slide 13: Cost of Risk
Cost of Risk LLP hit by deteriorating credit environment across the board Italian figures reflect the current recession Loan Loss Provisions (mln) – Group COR (bps) Cost of Risk (bps) Western Europe 2Q11 1Q12 2Q12 CEE & Poland 23.6% 62.2% 3,308 163 147 +36.6% 109 108 139 124 146 2,678 87 1,910 46 1,
Slide 14: Asset Quality
Asset Quality Gross impaired loans affected by a deteriorated credit environment Coverage stable NPLs (bn) +3.8% 43.2 44.8 Gross Impaired Loans (bn) 40.4 +3.2% 75.3 77.7 69.9 Jun 11 Mar 12 Jun 12 Coverage ratio 58.6% 57.1% 56.5% Other Impaired Loans (bn) Jun 11 Mar 12 Jun 12 +2.5% Coverage 29.5 32.1
Slide 15: Balance Sheet structure
Balance Sheet structure Net Interbank position substantially improved Securities issued (bn) Net Interbank Position (bn) Financial investments(2) (bn) Including Overnight deposits with Central Banks(1) -3.8 103.3 97.4 99.4 99.5 -1.5 -34.1 179 163 164 163 -44.5 Wholesale 119 90 -69.9 97 91 -59.8 -61.
Slide 16: Capital position
Capital position RWA down q/q driven by sharp reduction in Market and Credit RWA Strong capital ratios, ahead of plan RWA eop Basel 2 (bln) Capital Ratios (%) -1.7% Bis 2 Bis 2.5 Bis 2.5 455.5 445.2 447.7 51.8 +1.0% 13.53% 13.50% Operat. 50.2 52.4 Total Capital 13.49% 10.85% 10.94% Market 9.9 27.2 -
Slide 17: Agenda
Agenda Strategic Plan 2Q 2012 Results Liquidity & Funding Annex 17
Slide 18: UniCredit benefits from a well diversified funding platform
UniCredit benefits from a well diversified funding platform Group wide Liquidity Policy as well as a diversified funding by geography and type result in a prudent liquidity profile Sound liquidity and funding base Liquidity Management and Funding access based on Four Liquidity Centers (data as of Ju
Slide 19: UniCredit has a well defined Group Liquidity Policy
UniCredit has a well defined Group Liquidity Policy The overall liquidity is managed on a going concern and contingency basis via prudent risk metrics The UniCredit Group Liquidity Policy includes general principles, procedural and technical details. The current structure consists of the following s
Slide 20: Medium-Long Term Funding Plan
Medium-Long Term Funding Plan 2012 funding plan ahead of schedule thanks to the strong network platform Funding Mix % of m/l term run-offs by Region 82% % m/l term Network run-offs as of 30-06-2012 (1) 42 bn 31 bn 25.6 bn 26.7 7% Germany Austria 24.4 8% 29% 9% 15% 17% 10% 6% 0% 49% 10% 53% 15.4 29%
Slide 21: Strong commercial bank supports covered bond funding
Strong commercial bank supports covered bond funding… GERMANY Long experience CB issue outstanding of EUR 28.6 bn Mortgage: EUR 21.6 bn AUSTRIA COVERED BOND ISSUE CAPACITY (1) rating: Aa1, n/a, AAA Current focus on public sector Public sector: EUR 7 bn CB issue outstanding of EUR 9.0 bn rating: Aaa,
Slide 22: Funding via retail and private banking customers
…as well as funding via retail and private banking customers Network bonds Dec 11, % of TFA (1) Retail MLT Funding as % of Total Securities, Dec 11 79.8% 22.0% 72.6% 66.2% 18.0% 58.9% 16.8% 17.1% 56.4% 58.5% 16.3% 46.5% 12.8% 40.4% 10.7% 9.1% UCG Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 UCG
Slide 23: Funding Gap – Strategic Plan
Funding Gap – Strategic Plan Improving funding gap in line with Strategic Plan Group Funding gap(1) (bn) Group Funding gap by Region (bn) 103 93 89 -13.3% 86 68 -33.3% 59 Western 108 Europe 99 95 95 -11.1% 74 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 66 Strategic Plan implementation +11.7% 9 7 6 6 6 5 1Q11 2Q11
Slide 24: Balance Sheet Structure and Liquidity – Strategic Plan
Balance Sheet Structure and Liquidity – Strategic Plan Balance sheet repositioning: customer focus with matched maturities Breakdown by Maturities as of June 2012 (bn) 955 235 MLT Liabilities MLT Assets(1) 383 Customer Cust. Deposits + Loans Cust. Sec. in issue 418 Customers Deposits 557 491 ST Asse
Slide 25: Liquidity
Liquidity Sound position: 1Y Liquidity buffer exceeds 12m wholesale funding Liquidity buffer (12 months) as of June 2012 (bn) (1) 164.1 Additional eligible assets 48.0 available within 12 months Cash and Deposits 43.0 with Central Banks 116.1 Unencumbered assets 73.1 (immediately available) Liquidit
Slide 26: ECB participation is limited
ECB participation is limited… …and in line with UniCredit’s size and share in the European banking system OUTSTANDING (1) COST ECB REFINANCING 27.7 bn of which 3Y LTRO @ 26.1 bn 0.75% The ECB recourse is proportional to UniCredit’s share in the European banking system and its size in terms of Total
Slide 27: UniCredit has continuous wholesale market access
UniCredit has continuous wholesale market access Strong debt market franchise confirmed Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 3y Sen 5y CB 5y Sen (1.000) (5 bln (500 RUB) 5y Pfand USD) 3Y Sen 7y Pfand 5.5y 10y Unicredit (500) (10 blb (500) OBG Pfand RUB) (750) (500) 4y Pfand 5y Sen (50
Slide 28: August / September 2012 issues
UniCredit has continuous wholesale market access August / September 2012 issues 5.5Y OBG 750 mn 3Y Senior 1 bn 10Y CHF 150 mn Issuer UniCredit SpA Issuer UniCredit SpA Issuer UniCredit Ireland Issue size EUR 750 mn Issue size EUR 1,000 mn Issue size CHF 150 mn Status OBG Status Senior Unsecured Stat
Slide 29: Agenda
Agenda 2Q 2012 Results Strategic Plan Liquidity & Funding Annex 29
Slide 30: Group P&L
Group P&L Q2 Q1 Q4 Q3 Q2 Q1 Var. % 6M 6M Var. % (mln Euro) 2012 2012 2011 2011 2011 2011 q/q y/y 2012 0 2011 0 y/y Net interest 3,690 3,790 3,817 3,827 3,900 3,880 -2.6% -5.4% 7,480 7,780 -3.9% Dividends and other income from equity investments 169 54 47 91 126 117 n.m. +33.8% 223 243 -8.2% Net fees
Slide 31: Group Balance Sheet
Group Balance Sheet June March December September June March December September Var. (m ln Euro) 2012 2012 2011 2011 2011 2011 2010 2010 y/y % Cash and cash balances 31,477 19,669 9,728 5,566 6,596 5,982 6,414 4,935 +377.2% Financial assets held for trading 126,175 119,109 130,985 140,008 107,203 10
Slide 32: UniCredit Ratings Overview
UniCredit Ratings Overview UniCredit’s excellent diversification is a key strength for the rating analysts - UC SpA’s Fitch ‘A-’ ratings confirmed - S&P views Italy as a cap, but UCB AG and UC BA’s ‘A’ affirmed – Moody’s aligned UC SpA’s rating with Italy’s Baa2 Ratings UC SpA UCB AG UC BA Comments
UniCredit Group — Debt Investor Presentation (September 2012) on 6ix