ING Groep N.V. · EURONEXT:INGA
ING Groep — Investor Day (April 2009)
25 slides from ING Groep's investor day presentation, Apr 9, 2009
Slide 1: Increasing revenues in a competitive market
Increasing revenues in a competitive market ING Investor Day Hans Hagenaars Michael Koutstaal Executive Director Executive Director Marketing Sales & Service Direct Retail Netherlands Retail Netherlands Rotterdam – 9 April 2009 www.ing.com
Slide 2: Key messages
Key messages • There are still significant growth opportunities for ING, despite the maturity of the Dutch Retail Banking market • The new ING is built to maximise share of wallet among its 8.9 mln customers • ING’s central steering guarantees price realisation, optimal customer targeting and the ab
Slide 3: Dutch market is mature, but growth in key products and flows can be captured
Dutch market is mature, but growth in key products and flows can be captured Market size (2008, EUR bln) Est. market growth Flow to Stock ratios in (2009-2011, CAGR) the Dutch Retail Market (2008, % of Stock) Cons. Savings Cons. Mortgages Cons. Payments Cons. Gen. Insurance Cons. Life Insurance Cons
Slide 4: The new ING is built to maximise share of wallet at above average margins
The new ING is built to maximise share of wallet at above average margins High Large customer Central Process customer database + steering + contact frequency + orientation (Direct) Plus the enablers to grow share of wallet Physical An advisor Specialised brand + outlets for sale + sales forces ING
Slide 5: Customer base offers significant room to grow
Customer base offers significant room to grow Share of wallet (SOW), market share and product penetration among primary customers in 2008 Consumer market SME Savings Mortgages Investment prod. Life insurance Business lending (SOW) (SOW) (SOW1) (Prod. penetr.) (Prod. penetr.1) Rabobank ABN Amro (incl
Slide 6: Share of wallet growth has a large impact on future revenues
Share of wallet growth has a large impact on future revenues Three scenarios Impact on revenues 1 Close share of wallet Revenues (EUR mln) Revenue gap with best in class 700 CAGR by 1% point per year 600 3 7,9% 2 Close share of wallet 500 gap with best in class by 2% points per year 400 3 Close shar
Slide 7: The new ING is built to maximise share of wallet at above average margins
The new ING is built to maximise share of wallet at above average margins High Large customer Central Process customer database + steering + contact frequency + orientation (Direct) Plus the enablers to grow share of wallet Physical An advisor Specialised brand + outlets for sale + sales forces ING
Slide 8: Customer intelligence is leveraged to tailor offerings
Customer intelligence is leveraged Large customer to tailor offerings database In-depth knowledge of our …that we use to tailor products and distribution customers… channels to the various customer segments • ING Retail NL has 8.9 mln • Sales are geared towards customer customers in the consumer dif
Slide 9: Further growth in primary customer base is expected
Further growth in primary customer base Large customer is expected database Primary customers are sticky… …we actively manage the funnel • On average we obtain 55,000 No. of cust. (x 1,000) primary customers per year 600 • People choose early; increased 500 focus on young customers • Postbank was le
Slide 10: Price differentiation ensures maximum long-term profitability
Price differentiation ensures maximum Central long-term profitability steering ING uses price differentiation… …which has been very successful • ING practices client-specific pricing Postbank’s variable savings portfolio (in EUR bln) • A pricing strategy is determined for each product group 40 20 %
Slide 11: Central steering is key to managing margins
Central steering is key to managing Central steering margins Centrally steered Branch based The new ING direct bank bank • Centrally steered • Central customer • Branch owns • Central customer ownership customer ownership • Central pricing • Branch sets prices • Central pricing • Central targeting •
Slide 12: Central steering enables ING to adapt to changes swiftly
Central steering enables ING to adapt Central to changes swiftly steering Savings can shift quickly from margin Pricing of business lending provides to volume when needed enough flexibility to steer margin Used when interbank funding was a much The composition of the lending portfolio more expensive
Slide 13: ING: a very strong advisor brand
ING: a very strong advisor brand Advisor brand • ING is already a well-established brand in the Dutch market • Autonomous awareness of ING brand has risen from 61% in Q2 to 79% in Q4 2008 • 99% of our customers were aware of the new name of Postbank and ING Bank Netherlands right before the launch o
Slide 14: The new ING is built to maximise share of wallet at above average margins
The new ING is built to maximise share High customer contact of wallet at above average margins frequency High Large customer Central Process customer database + steering + contact frequency + orientation (Direct) Plus the enablers to grow share of wallet Physical An advisor Specialised brand + outl
Slide 15: The largest internet bank in the Netherlands
The largest internet bank in the High customer contact Netherlands frequency Large number of unique visitors in open environment (in mln) 8 www.ing.nl 6 www.rabobank.nl 4 www.abnamro.nl 2 www.snsbank.nl 0 2004 2005 2006 2007 2008 Large and still growing # of online banking Increasing # of sessions p
Slide 16: Internet realises significant and rapidly growing present value
Internet realises significant and rapidly High customer contact growing present value frequency Present value generated by online sales at ING consumer banking (in EUR mln) 150 Leads (mortgages) Direct sales 100 Present Value is defined as gross margin over expected lifetime of customer contract, 50
Slide 17: Leveraging internet traffic volume to generate sales and leads
Leveraging internet traffic volume to High customer contact generate sales and leads frequency Present value steering via ‘shopkeeper’ Example: For one week, one marketer system offered a rentepunten promotion • 25 internet marketers are responsible for sales, representing the biggest internet depar
Slide 18: Present value steering proves effective; strong increase in 2008
Present value steering proves effective; High customer contact strong increase in 2008 frequency Present value generated by online sales Sales steering increased mortgage ING business customers (in EUR mln) leads for ING Bank Netherlands clients Presales (# in 1,000) 30 25 20 20 15 10 10 5 0 0 2006
Slide 19: Continuous innovation of sales and lead generation: behavioural targeting
Continuous innovation of sales and lead High customer contact generation: behavioural targeting frequency Behavioural targeting: the right Two banners on log-off screen driven by proposition for the right user at Behavioral targeting tool the right time • Real-time collection of behavioural activity
Slide 20: Continuous innovation of sales and lead generation: ING Chatbot
Continuous innovation of sales and lead High customer contact generation: ING Chatbot frequency Conversion via traditional ‘impersonal’ Conversion via chatbot is 17.4% (+89%) form is 9.2% ING Investor Day, 9 April 2009 20
Slide 21: A strong two-tiered branch network
Physical A strong two-tiered branch network outlets for sales • 285 full-fledged ING branches ready by 2012 • 530 shop-in-shop locations where customers can execute their basic transactions • All centrally managed, with customer ownership and P&L responsibility held by the central organization • ING
Slide 22: Seven sales forces geared towards selling advice-intensive products
Seven sales forces geared towards Specialised selling advice-intensive products sales forces Sales Force Targeted segment Number of advisors Mortgages All consumer mortgages Customers with > EUR 75k Securities securities with ING Pensions High mass and affluent customers Over 1,000 Customers with >
Slide 23: All channels work to generate leads for the sales forces
All channels work to generate leads Specialised for the sales forces sales forces Primary contact Branches available And expert sales forces via direct when preferred when needed1 channels Mail 400,000 requests per year ~30 M mail packs Client 15 M brochures 4 M leaflets Call 13 M calls per year Mor
Slide 24: The new ING is built to maximise share of wallet at above average margins
The new ING is built to maximise share of wallet at above average margins High Large customer Central Process customer database + steering + contact frequency + orientation (Direct) Plus the enablers to grow share of wallet Physical An advisor Specialised brand + outlets for sale + sales forces ING
Slide 25: Forward-looking statements disclaimer
Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ ma