Firstrand Limited · JSE:FSR
Firstrand — UBS Conference 2013
16 slides from Firstrand's conference presentation, October 2013
Slide 1: Building blocks for “Testing Times”
Building blocks Body Copy, 24pt Arial for “Testing Times” October 2013 Jacques Celliers
Slide 2: Agenda
Agenda Succession update Environment reflection Differentiation as a key strategy • part 1 - banking innovation • part 2 - lifestyle innovation Market share focus Credit strategy Final thoughts
Slide 3: Strong team throughout
Strong team New CEO 12 years in FNB throughout EXCO experienced and stable Management experienced and stable Succession well received
Slide 4: Environment getting tougher by the day
Environment Macros deteriorating getting Regulation intensifying Competitor responses intensifying tougher by the day well positioned
Slide 5: Differentiation Part 1 – innovating our core banking processes
Differentiation Core transactional led Part 1 – Service differentiation Innovation resulting in efficiencies innovating our core banking processes
Slide 6: #1 - Innovative regulatory compliance
#1 - Innovative regulatory compliance Consumer cross-border outward payments Need: outward swift volume 100% • differentiation • efficiency 50% online Opportunity: • exchange control modernisation 0% scale to more customers & countries
Slide 7: #2 - Extract more value from existing customers
#2 - Extract more value from existing Consumers buying fuel on cards Need: customers • differentiation 1.0M • move to ‘front of wallet’ • ‘cash to card’ migration 0.5M Opportunity • untraded ‘fuel’ related 0.0M value proposition scale to more customers & countries
Slide 8: #3 - Introduce new solutions
#3 - Introduce new solutions Consumer mobile banking smart phone app Need: • differentiation transaction volume 2.0M • efficiency Opportunity: 1.0M • smartphones 0.0M scale to more customers & countries
Slide 9: #4 - Reinvent old core capability
#4 - Reinvent old core capability Cash deposit at ADT Need: transaction volume • differentiation - 24x7 4M cash deposits teller • efficiency – migrate 2M high volume low value ADT manual transactions to M self service devices Opportunity: • innovative technology scale to more customers & countries
Slide 10: #5 – Leveraging excess capacity
#5 – Leveraging excess capacity Proactive sales and service Need: • VSI automated requests fulfilled 200K Opportunity: 100K • innovative leverage of data & technology 0K 11 12 13 scale to more customers & countries
Slide 11: #6 - Business architecture to support differentiation
#6 - Business architecture to support Integrated, channel agnostic sales and service Need: • multiple channels • conversion rates • differentiated service • Efficiency scale to more customers & countries
Slide 12: Differentiation Part 2 - leveraging lifestyle value propositions
Differentiation Airtime - R350m top-ups pm Part 2 - Devices - 180k devices Air travel - 35k lounge visits pm leveraging Road travel - 15k assistances pa lifestyle value Spoil - R50m eB pm propositions Fuel - 300k tanks ...
Slide 13: Lifestyle offerings integrated into ‘core’
Lifestyle offerings integrated into ‘core’ Relevant categories Sufficiently generous Simple to access/fulfil Need: • differentiation • VSI • conversion rates • profitable behaviour • retention behavioural economics scale to more customers & countries
Slide 14: Switching is delivering market share growth
Switching is delivering Retail & Commercial market share growth Clear value differentiation effective distribution & marketing scale to more customers & countries
Slide 15: Core relationship based asset growth
Core NPL workout impressed relationship Support core transactional strategy Better quality based asset Appropriate pricing growth Well positioned for regulatory changes open for business
Slide 16: Focussed on delivering superior shareholder returns
Focussed on Recognise tougher climate ahead delivering Innovation has become core superior Energized, stable experienced team Building on strong momentum shareholder Significant upside left in ‘e’-ing returns • engineering • data Controlled healthy cost base Positioned well in SA, Africa, India only