Addiko Bank Ag · VIE:ADKO
Addiko Bank — Non-Deal Roadshow (September 2023)
26 slides from Addiko Bank's roadshow presentation, Sep 21, 2023
Slide 1: Austria Roadshow
Austria Roadshow Herbert Juranek (CEO) Edgar Flaggl (CFO) Constantin Gussich (Investor Relations) Autumn 2023
Slide 2: Management Team Since June 2021
Management Team Since June 2021 Herbert Juranek Edgar Flaggl Tadej Krašovec Ganesh Krishnamoorthi Chief Executive Officer Chief Financial Officer Chief Risk Officer Chief Market, IT & Digitalisation Officer Chair of the Management Board Member of the Management Board Member of the Management Board M
Slide 3: Achievements of the Transformation Program
Achievements of the Transformation Program • 18-month Transformation Program launched with 1H21 results, closed by year-end 2022 Goals • Significant business momentum and revenue growth achieved, Addiko brand repositioned Achieved • Efficient cost management delivered in parallel to boosting revenue
Slide 4: Successful Acceleration of Growth in Focus Areas Consumer & SME
Successful Acceleration of Growth in Focus Areas Consumer & SME Gross performing loans in focus segments Development of loan book split into focus and non-focus Gross loans of focus segments as % of total gross performing loans Gross performing loans 3,530 3,436 % in focus 51% 56% 62% 65% 3,287 3,30
Slide 5: Growth Momentum Continued While Keeping Prudent Underwriting During 2023
Growth Momentum Continued While Keeping Prudent Underwriting During 2023 Focus portfolio development Development during 1H23 Gross performing loans (€m) YoY • +10% YoY growth in focus book (+14% YoY +7% +10% excluding medium SME) • +7% growth in focus book in the first half 2,904 2,722 2023 on t
Slide 6: Significant Reduction of NPEs as Anchor of Transformation Program
Significant Reduction of NPEs as Anchor of Transformation Program NPE volume & ratio development Total exposure by geography €m, YTD €m, 1H23 NPE ratio 3.4% 2.9% 2.4% 2.4% NPE ratio (on-balance loans)1 4.8% 4.0% 3.3% 3.3% 3% 6% 24% 15% Total 64% €6,608m 17% 35% 238 194 163 159 NPE volume by geograph
Slide 7: Visible Performance Improvements since June 2021 …
Visible Performance Improvements since June 2021 … 160.0 6.00% in €m 140.7 140.0 115.8 120.7 5.00% 120.0 32.5 • Sharpened focus on Consumer & SME NCI 100.0 31.6 36.1 3.67% 4.00% business & established partnerships 80.0 NIM 2.87% 2.96% • Shift towards Micro & Small tickets in 60.0 3.00% 108.1 SME wit
Slide 8: … Visible Throughout the Group
… Visible Throughout the Group Group Country in € 1H21 1H23 D NIM 2.7% 4.2% +1.4pp CIR 49.6% 41.5% -8.2pp Slovenia NPE ratio1 1.6% 2.4% +0.8pp in € 1H21 1H23 D NIM 2.3% 3.1% +0.8pp CIR 58.6% 50.5% -8.1% Total assets 5.9b 5.9b -0.06b ➔ Croatia NPE ratio 6.7% 3.6% -3.0pp NIM 2.9% 3.7% +0.8
Slide 9: Share Price Development
Share Price Development Evolution of the stock price since 2021 in comparison with Austrian banks1 Ad-hoc on Ad-hoc on Publication of introduction of rejection of YE21 results CHF Law in CHF Law in Slovenia Slovenia 26.09.2023 180% 160% 140% €12.50 €31.92 120% €42.42 Share price as €3,116.46 100% of
Slide 10: Acceleration Program until 1H24 to Further Drive Value Generation
Acceleration Program until 1H24 to Further Drive Value Generation Business Growth in Focus Areas 1 Unlock potential of existing footprint Tap additional revenue & profit Prepare market expansion pools Plug & Play platform Digital Consumer lending Digital SME Operational Excellence & Digital lending
Slide 11: Key Developments in Acceleration Program as of 1H23
Key Developments in Acceleration Program as of 1H23 Key developments • Focus book with double digit growth YoY – on track to achieve guidance for full year on the back of 1H23’s growth of 7% Business • Continued extension of partnership universe to c. 1 Growth in Focus Areas 470 partners • Launch of
Slide 12: Mid-Term Targets Published in March 2023
Mid-Term Targets Published in March 2023 Updated Targets Previous Targets Rationale Focus vs. Non-Focus Acceleration Program to lead Business (Gross Performing Loans) >95% in Focus c. 95% in Focus to higher share in Focus Focus loan book growth c. 10% CAGR unchanged Due to accelerated shift into Net
Slide 13: Outlook 2023
Outlook 2023 The group raised the outlook for 2023 to reflect strong business development, the favourable interest environment and continued prudent stance on risk & legal costs: – Gross performing loans: c. €3.5b with >10% growth in focus ➔ REVISED – Net Banking Income: up by c. 15% positively impa
Slide 14: Additional Materials
Additional Materials dee ee
Slide 15: Addiko at a Glance
Addiko at a Glance Overview of Addiko Operating as one region - one bank 1H23, % of Group Assets (rounded) ✓ Fully licensed bank with HQ in Austria, focused 100% on Central ✓ and South Eastern Europe ✓ Addiko Bank AG is regulated by the Austrian Financial Market Austria ✓ (5%2) Authority (“FMA”)1 an
Slide 16: Environment Social Governance
Addiko’s Commitment to the Sustainable Development Goals ESG in Addiko - It is the little things that count Environment Social Governance Making ESG work through Vision Carbon footprint reduction Committed to the good good governance Addiko helps its employees Sound principles of Addiko supports soc
Slide 17: Balance Sheet Composition
Balance Sheet Composition Assets Liabilities and Equity 1H23, €b 1H23, €b 5.9 5.9 Other ✓• Liquid balance sheet Other Assets 0.2 0.2 Liabilities ✓• Strong deposit base - LCR ratio: 336% (YE22: 307%) 0.1 Due to Credit Institutions - Loan-deposit ratio 0.5 Direct (customer) : 70.6% (YE22: ✓• Liquid as
Slide 18: Key Highlights 1H23
Key Highlights 1H23 • 1H23 net profit up 55% YoY to €19.5m (1H22: €12.6m), 1H23 EPS at €1.00 − Second quarter result 2023 after tax at €9.8m (€9.7m in 1Q23) − Cost of Risk remained benign at -27bps (€-9.2m) Earnings • Return on average Tangible Equity at 5.4% YTD (1H22: 3.4%) & • Operating result up
Slide 19: Financial Performance 1H23 at a Glance
Financial Performance 1H23 at a Glance Financial Performance 1H23 2Q22 3Q22 4Q22 1Q23 2Q23 5.80% YTD, €m 5.30% 72.9 1H22 YoY 67.8 4.80% 62.5 64.0 64.2 17.0 Net Netinterest interestincome income 108.1 84.6 +27.8% NCI 15.6 4.30% 19.3 17.1 19.1 3.80% 3.55% 3.80% Net Net fee & fee & commission NIM 32.5
Slide 20: Financial Performance 1H23 in Detail
Financial Performance 1H23 in Detail Key financials P&L in €m YTD QTD •1 Operating result up 53.7% YoY to €49.6m: 1H23 (YTD) 1H22 (YTD) +/- PY 2Q23 1Q23 +/- PQ − Net banking income up 16.6% YoY driven Net interest income 108.1 84.6 27.8% 55.9 52.2 7.1% by strong development in Consumer & SME Net fee
Slide 21: Capital Position Remains Strong
Capital Position Remains Strong Capital development fully-loaded % CET1/TCR, YTD, RWA in €m Addiko Group 3,481 3,507 3,559 RWFL 0.04% 0.01% 0.22% 0.15% 0.20% 0.30% CET1/ 20.0% 20.0% TCR 19.9% fully-loaded 1 1 2022 OCI Reg. & RWA 1Q23 OCI Reg. & RWA 1H23 changes Equity developm. changes Equity develo
Slide 22: Economic Environment
Economic Environment GDP forecasts1 (%, real growth) Forecasts • 2023’s economic growth in EU 2022 2023E 2023E 2024E 2024E 2025E 2026E Base Pessimistic Base Pessimistic Base Base member states slowed, however, Slovenia 5.4% 1.4% (1.0%) 2.5% (1.3%) 2.7% 2.7% Southeast Europe motors on Croatia 6.2% 2.
Slide 23: Strong Risk Management Framework
Strong Risk Management Framework Non-performing loan portfolio (YTD) NPE Volumes, 1,229 761 606 404 277 244 194 163 161 159 €m NPE Coverage Ratio1 61.7% 67.5% 67.0% 75.4% 73.8% 73.6% 71.9% 75.4% 77.0% 78.0% (Ex-Collateral) 14.3% NPE Ratio2 9.2% 8.1% 5.6% 3.9% 3.5% 2.9% 2.4% 2.4% 2.4% NPE Ratio (on-b
Slide 24: Capital Requirements & Guidance Going Forward
Capital Requirements & Guidance Going Forward Capital requirements as of 2023 (excluding P2G) • Unchanged at 3.25% P2R • At least 56.25% must be held in CET1 (2023) capital and at least 75% in Tier 1 capital • Yearly review as part of SREP 19.9% 19.9% 19.9% • Systemic Risk Buffer for Addiko Group: C
Slide 25: CHF Loans Significantly Managed Down
CHF Loans Significantly Managed Down CHF portfolio overview CHF status across countries €m % of Total 5.5% 4.4% 3.4% 2.0% 1.7% 1.3% 1.1% 1.0% 1.0% Credit Risk • Several legislative initiatives on CHF loans were launched, but ultimately Exposure 1 rejected because the parliamentary constitutional ser
Slide 26: Disclaimer
Disclaimer THESE RESULTS AND STATEMENTS (HEREINAFTER REFERRED TO AS “MATERIALS”) WERE CAREFULLY PREPARED BY ADDIKO BANK AG. HOWEVER, THE MATERIALS HAVE NOT BEEN INDEPENDENTLY VERIFIED. THEREFORE, ADDIKO BANK AG MAKES NO REPRESENTATION AND GIVES NO WARRANTY, NEITHER IMPLIED NOR EXPRESSED, AND ASSUMES