Bank Millennium Sa · GPW:MIL
Bank Millennium Sa — Investor Day (October 2017)
24 slides from Bank Millennium Sa's investor day presentation, Oct 30, 2017
Slide 1: Strategy 2020 for Bank Millennium
Strategy 2020 for Bank Millennium Presentation to analysts and investors. Warsaw, October 30th 2017
Slide 2: Disclaimer
DISCLAIMER This presentation (the ”Presentation”) has been prepared by Bank Millennium S.A. (the ”Bank”). This presentation should not be treated as a part of any invitation or offer to sell any securities, invest or deal in or a solicitation of an offer to purchase any securities or recommendation
Slide 3: Macroeconomic Overview (I/III)
MACROECONOMIC OVERVIEW (I/III) Solid macro background in Poland in recent years, expected to continue going forward Low unemployment and growing wages boost Poland’s growth consistently above EU levels (%) private consumption (%) 4.3 8.1 3.8 3.8 6.9 3.3 3.5 3.4 6.2 6.0 5.5 5.6 2.9 4.9 2.4 4.5 4.6 4.
Slide 4: Macroeconomic Overview (II/III)
MACROECONOMIC OVERVIEW (II/III) Resilient banking system with improving profitability, however affected by regulatory / tax interventions Profitability ratios in the Polish banking sector (%) • Strong resilience during last global financial crisis – no bank went bankrupt or needed 10.0% 7.9% 8.7% ca
Slide 5: Macroeconomic Overview (III/III)
MACROECONOMIC OVERVIEW (III/III) Healthy growth of main monetary aggregates, with headroom for further growth when compared with EMU average levels Loans to non-financial Loans to households (bln PLN, %) % of GDP companies (bln PLN, %) % of GDP 6.6% 8.0% 5.5% +23 5.2% 6.5% 4.6% +15 5.6% 5.4% 2.9% 4.
Slide 6: Bank Millennium is entering this new strategy period with very solid foundations
BANK MILLENNIUM IS ENTERING THIS NEW STRATEGY PERIOD WITH VERY SOLID FOUNDATIONS We are a leader in client acquisition We are a leader in client satisfaction & recommendation Gross addition of clients in thousands % of customers satisfied or very satisfied Net Promoter Score 310 258 84 85 86 212 #2
Slide 7: We are fit for future – we have the model that allows us to turn upcoming trends to our advantage
WE ARE FIT FOR FUTURE – WE HAVE THE MODEL THAT ALLOWS US TO TURN THE UPCOMING TRENDS TO OUR ADVANTAGE Changing market circumstances require new sets of skills and approach… ... and Bank Millennium has the winning model We are the most client centric bank and want to Raising expectations of customer
Slide 8: We are already a leader in client centricity – a competitive advantage for continued growth
1 CLIENT CENTRICITY WE ARE ALREADY A LEADER IN CLIENT CENTRICITY – A COMPETITIVE ADVANTAGE FOR CONTINUED GROWTH ... as a result, our clients see us as We have top NPS in the Polish ... for years we have been ranked their main bank and they banking industry... among the best... recommend us NPS among
Slide 9: To push client centricity even further we aspire to become the most personalized bank
1 CLIENT CENTRICITY TO PUSH CLIENT CENTRICITY EVEN FURTHER WE ASPIRE TO BECOME THE MOST PERSONALIZED BANK For us there is no "average client" 1:1 personalization • We want to offer our clients financial solutions which are tailored to their needs on 1:1 basis and delivered in the right context Effic
Slide 10: Our personalization capability is already very advanced
1 CLIENT CENTRICITY OUR PERSONALIZATION CAPABILITY IS ALREADY VERY ADVANCED – TARGET BEHAVIORAL SEGMENTS DEFINED AND CVP1 GOING LIVE IN 2018 Highly actionable behavioral segments created using Defined segments with clear personas and CVP BigData fusion of internal and external data implications Exam
Slide 11: While some banks declare they want to become digital, we already are!
2 DIGITAL WHILE SOME BANKS DECLARE THEY WANT TO BECOME DIGITAL, WE ALREADY ARE! Recognized through industry rankings... ... which translates into best-in-class digital activity levels and sales results Share of clients actively using mobile Share of digital channels in Consumer Loans sales +31pp >30
Slide 12: We will continue to push the innovation frontier to remain relevant for our customers
2 DIGITAL WE WILL CONTINUE TO PUSH THE INNOVATION FRONTIER TO REMAIN RELEVANT FOR OUR CUSTOMERS Setting a new definition of Product – Digital solutions delivering most relevant set of functionalities #1 Bank in Poland implementing tokenized Personalized discounts @ Goodie cards based contactless Pay
Slide 13: In terms of growth we are already the leader in client acquisition
3 GROWTH IN TERMS OF GROWTH WE ARE ALREADY THE LEADER IN CLIENT ACQUISITION Through a mix of traditional … we mastered clients … and we are growing our client base & new approaches … acquisition … at the fastest pace An innovative multi-channel Number of acquired clients Change in number of C/A vs.
Slide 14: We will complement current growth engine with new ones to further accelerate
3 GROWTH WE WILL COMPLEMENT CURRENT GROWTH ENGINE (ACQUISITION) WITH NEW ONES TO FURTHER ACCELERATE Investments Consumer Loans Micro Business SME & Corporate Poland still far behind Significant part of Very solid growth Bank Millennium has selected EU markets while business banking where machine alr
Slide 15: We are expanding our proven affluent investments model, targeting mass segment
3 GROWTH WE ARE EXPANDING OUR PROVEN AFFLUENT INVESTMENTS MODEL, WITH NEXT GENERATION DIGITAL SOLUTIONS TARGETING MASS SEGMENT ...we will capture a By expanding our affluent ... with a new digital investment platform significant increase of investments model... targeting also mass market segments...
Slide 16: Our consumer finance offensive will build on state-of-the-art client experience and PSD2
3 GROWTH OUR CONSUMER FINANCE OFFENSIVE WILL BUILD ON STATE- OF-THE-ART CLIENT EXPERIENCE AND OPPORTUNITIES PROVIDED BY PSD2 The consumer loan market will be ...we will amplify the growth by ... and thus translate it into growing at an attractive pace... leveraging open data... accelerated growth Ma
Slide 17: We will launch aggregation services to capture open-banking opportunities
3 GROWTH WE WILL LAUNCH AGGREGATION SERVICES BOTH TO EXISTING AND NEW CLIENTS TO CAPTURE OPEN-BANKING OPPORTUNITIES Bank Millennium is well positioned to By re-inventing daily banking we will stay even closer harness aggregation opportunity to our current clients and reach out to new ones Easy activ
Slide 18: Growth in business banking will base on our proven strengths and customer acquisition
3 GROWTH GROWTH IN BUSINESS BANKING WILL BASE ON OUR PROVEN STRENGTHS AND WILL FOCUS ON CUSTOMER ACQUISITION Micro: Expansion through superior retail Corpo: Leverage of proven model and and digital capabilities growth through focus on priority sectors We are leaders in retail acquisition and will We
Slide 19: Our best-in-class efficiency is ensured by automation, scalability and agility
4 EFFICIENCY OUR BEST-IN-CLASS EFFICIENCY IS ENSURED BY A FUTURE- PROOF COMBINATION OF AUTOMATION, SCALABILITY AND AGILITY We are already a very cost ... ready to scale at ...and we will further amplify the efficient bank... negligible costs… power of automation with AI Cost to Income ratio 1H 2017
Slide 20: Our internal digital and tech capabilities will be complemented through a FinTech hub
4 EFFICIENCY OUR PROVEN INTERNAL DIGITAL & TECH CAPABILITIES, WILL NOW BE FURTHER COMPLEMENTED THROUGH A FINTECH HUB We have a proven internal digital & tech …ready to plug-in external tech partners through platform… a FinTech hub and deliver non-linear growth Strong and growing talent pool develope
Slide 21: Talent and capabilities will be ensured by an enriched employer value proposition
4 EFFICIENCY TALENT AND CAPABILITIES NECESSARY FOR DELIVERY OF OUR AMBITIOUS STRATEGY WILL BE ENSURED BY AN ENRICHED EMPLOYER VALUE PROPOSITION Bank Millennium is already an ...and will become even more so, to keep exciting place to work ... attracting top talents Reinvented, inspiring workplace Adm
Slide 22: We are dedicated to create shared values and commit to corporate social responsibility
WE ARE DEDICATED TO CREATE SHARED VALUES AND MAKE CLEAR COMMITMENT TO CORPORATE SOCIAL RESPONSIBILITY Banking for all - no physical, infrastructure and digital barriers Customers Digital functionalities beyond banking e.g. e-administration Ethical sales Employees’ satisfaction Colleagues Education a
Slide 23: As the result of Strategy 2020, we will deliver continued strong growth
AS THE RESULT OF STRATEGY 2020, WE WILL DELIVER CONTINUED STRONG GROWTH, SUPERIOR COST-EFFICIENCY AND TOP-OF-INDUSTRY SHAREHOLDERS’ RETURN AMBITION by 2020 • Core business Income growth by ~30% (vs. 2017) We want to gain scale by being a growth leader in • Double-digit volume growth in core selected
Slide 24: Summing it up: we are ready to accelerate our growth even further
SUMMING IT UP: WE ARE READY TO ACCELERATE OUR GROWTH EVEN FURTHER 2018-2020: “Accelerated growth” • Complementing current 2015-2017: growth engine in Retail (C/A “Focus on profitability acquisition) with new engines 2012-2014: preservation, while (cash Loan, investments and “Rebalancing the keeping