Alior Bank Sa · GPW:ALR
Alior Bank Sa — IPO Roadshow (November 2012)
38 slides from Alior Bank Sa's IPO roadshow presentation, Nov 21, 2012
Slide 1: Roadshow Presentation
Roadshow Presentation 1 November 2012
Slide 2: IPO overview
IPO overview Overview Issuer Alior Bank S.A. (“Alior Bank”, “the Bank” or the “Company”) Public offering in Poland to institutional investors, retail investors and employees Offering Sales to QIBs in reliance on Rule 144A Sales to institutional investors under Reg S outside the US Primary:
Slide 3: IPO timetable
IPO timetable IPO timetable 21 Nov 2012- Management roadshow 04 Dec 2012 21 Nov 2012- Institutional bookbuilding (books closing on 04 Dec 2012 at 5 PM CET/4 PM UK) 04 Dec 2012 22 Nov 2012 – Retail investors‟ subscription period 03 Dec 2012 04 Dec 2012 Pricing 05 Dec 2012 Allocations releas
Slide 4: Today's presenters
Today’s presenters Wojciech Niels Sobieraj Lundorff Co-Founder & CEO Co-Founder & Deputy CEO 4
Slide 5: Alior: The future of banking
Alior: The future of banking Why we started Alior S1 The opportunity The concept 14 MM 4 MM Households(1) Companies(1) Top quality bank in Poland Superior Effective brand concept offering at a Entrepreneurial Bowler-hat bankers fair price society Significant client acquisition Technology c
Slide 6: Alior: The future of banking delivered today
Alior: The future of banking delivered today The delivery (2009-9M 2012) S2 Broad 1.4 million clients and #1 bank by new client acquisition (1) Overdelivery on financial targets platform #3 physical distribution network (5) and top 5 Internet Bank (6) (10) Versatile and advanced IT platform pr
Slide 7: Agenda
Agenda S1 What is the vision behind Alior Bank? 7 S2 What is Alior Bank today? 10 S3 What is next for Alior Bank? 24 Appendix 29 7
Slide 8: The opportunity in Poland – for the creation of an innovative new bank
The opportunity in Poland – for the creation of an innovative new bank Significant market growth... ...resulting from under penetration... Loans to households Loans to corporations % of GDP, 2007 and 2010 PLN Bn PLN Bn 200 239 600 250 140 144 526 216 150 207 204 470 500 200 413 168 369 100 83 400 13
Slide 9: Focus on results and execution excellence
Focus on results and execution excellence Equity injection of PLN1.5 Bn paid in full and clear targets set at the beginning Goal to create a valuable bank within five years by 2012 Targets for 2011 set at inception in 2007 (1) Profitable Sizeable Revenues: PLN 983 MM Target market share of (vs. P
Slide 10: Agenda
Agenda S1 What is the vision behind Alior Bank? 7 S2 What is Alior Bank today? 10 S3 What is next for Alior Bank? 24 Appendix 29 10
Slide 11: A well-established banking platform designed for efficient growth
A well-established banking platform designed for efficient growth Strong, entrepreneurial management team with a proven track record of 1 achieving growth and profitability targets Attractive banking proposal based on quality of service, innovative technology- 2 based products, and strong brand 3 Mo
Slide 12: One of Poland's strongest and most entrepreneurial management teams
1 One of Poland’s strongest and most entrepreneurial management teams Management Board (CEO/ Deputy CEOs) Wojciech Krzysztof Niels Artur Witold Cezary Katarzyna Sobieraj Czuba Lundorff Maliszewski Skrok Smorszczewski Sułkowska Finance Risk, Modern Banking Collection, HR Traditional Finance Corporate
Slide 13: Innovation differentiates Alior franchise and drives market share gains
2 Innovation differentiates Alior franchise and drives market share gains Since inception, Alior launched innovative products that competitors struggled to imitate... May Apr Sep Feb ATMs worldwide 2009 2010 2010 2011 Jun Apr Dec Mar for free 2009 2010 2010 2011 Retail ...driving strong customer acq
Slide 14: Service quality and efficient marketing support customer acquisition
2 Service quality and efficient marketing support customer acquisition ...support position as No.1 bank in Poland in Superior service quality... client acquisition Ranking of the best retail banks in Poland New current accounts opened in 2011 (k) 2011 2010 2009 336 Alior Bank No.1 No.2 No.1 No.1 No.
Slide 15: A modern and truly multi-channel distribution platform
3 A modern and truly multi-channel distribution platform... User-friendly virtual/call centre and mobile Rapidly growing Internet banking population banking services Internet banking users % of total population (2011) Virtual Banking/Call center Live video connection 79% 85% Live document sharin
Slide 16: ...with traditional network at par with mid-sized players
3 ...with traditional network at par with mid-sized players Alior has already developed Poland’s third(1) largest distribution network... 684 659 29 518 429 437 449 485 374 276 139 199 Number of outlets (2) as of Jun-12 (Alior as of Sep-12) Increase in the number of outlets since 2009 …capable to su
Slide 17: Organisational culture focused on excellence, scalability and cost efficiency
4 Organisational culture focused on excellence, scalability and cost efficiency... Cost efficient organisation Operational excellence in numbers Operating expenses by customer (PLN)(1) Key performance Market 1,403 indicator (monthly) Jan-11 Sep-12 Benchmark(2) 1,075 Loan documentation 990 852 918 ve
Slide 18: …and a versatile IT platform providing a unique competitive advantage
5 …and a versatile IT platform providing a unique competitive advantage Key IT aspects Lowest IT costs in the sector(1) Alior CEE EU No legacy issue and simple IT organisation Bank IT costs as % of total general & administrative 13.3% 13.9% 6.8%(²) costs Access to highly competent IT staff (Kraków c
Slide 19: Tested risk management systems driving strong portfolio performance and asset quality
6 Tested risk management systems driving strong portfolio performance and asset quality Alior delivers best risk management practices Strong credit risk practices supporting asset quality Well-below-market NPL ratios (1) High coverage(3) Own scoring and rating models verified and fed with data fro
Slide 20: A well diversified and balanced business mix
7 A well diversified and balanced business mix Diversified loan portfolio... ...funded by customer deposits... ...with balanced segment profits Net customer loans by product (PLN Bn) Customer deposits Customer loans Gross profit by segment (PLN MM) FX loans Excess of deposits Excess of deposits Othe
Slide 21: Growing and structurally well matched loans and deposits
7 Growing and structurally well matched loans and deposits Sustained loan growth... (1) ...Funded by deposits (1) PLN MM PLN MM 15,170 13,537 13,531 1,638 10,135 3,402 5,812 4,603 3,610 4,109 2,667 2,865 2009 2010 Δ 2011 Δ 2011 9M12 Δ 9M 2012 2009 2010 ∆ 2011 ∆ 2011 9M12 ∆ 9M 2012 Source Alior Bank
Slide 22: Revenue and cost focus having bottom line impact
7 Revenue and cost focus having bottom line impact Expanding revenue base...(1) ...Allows leveraging infrastructure (1) PLN MM PLN MM 263% 56% 1,366 762 995 372 640 122 79 474 87 416 399 180 (2) (2) 2009 2010 ∆ 2011 ∆ 2011 9M12 ∆ 9M 2012 2009 2010 ∆ 2011 ∆ 2011 9M12 ∆ 9M 2012 Cost/Income Source Alio
Slide 23: Accelerating profitability
7 Accelerating profitability Evolution of net income ROE and ROA PLN MM % (1) (2) ROE ROA 297 23.2 152 14.6 1.2 1.8 (1.3) (6.4) (104) (10.1) (22.4) (271) 2009 2010 2011 9M 2012 (3) (3) 2009 2010 2011 9M 2012 Source Alior Bank Source Alior Bank Notes 1. Calculated by dividing net profit (loss) by the
Slide 24: Agenda
Agenda S1 What is the vision behind Alior Bank? 7 S2 What is Alior Bank today? 10 S3 What is next for Alior Bank? 24 Appendix 29 24
Slide 25: Ambitious targets supported by two-pillar strategy
Ambitious targets supported by two – pillar strategy Medium-term target Double market share in Poland, mainly by gaining further market shares in all retail segments and SME Market share at the end of 3Q2012: 2.1% for deposits and 1.7% for loans (1) Cost/income ratio below 42% Pillars 1 Genera
Slide 26: Network expansion sets platform for long-term client acquisition
Network expansion sets platform for long-term client acquisition …with scope for growth Distribution platform Current Target will keep growing over next years… in all segments Mid- Sep-12 term Market Shares - Target 2012 3Q (1) • Platform in place • Mortgages 4.0% Branches 209 209 • Provides nationw
Slide 27: Future revenue opportunities from new products and channels
Future revenue opportunities from new products and channels Alior Sync: a Virtual Bank – launched mid June 2012 Almost 90k clients acquired between June and end of September 2012 and have brought to the Bank PLN225 MM in deposits Expected 800k new clients by 2016 Increase market share in dep
Slide 28: A strong capital position to support profitable organic growth
A strong capital position to support profitable organic growth Alior Bank Core Tier I ratio pro-forma PLN700 MM capital increase vs. major Polish peers 15.3% 13.8% 13.3% 11.2% 11.4% 10.9% 9.9% 9.3% 9.4% (1) 9M12 9M12 pro-forma for PLN700 MM capital increase A capital increase will allow Alior Bank t
Slide 29: Agenda
Agenda S1 What is the vision behind Alior Bank? 7 S2 What is Alior Bank today? 10 S3 What is next for Alior Bank? 24 Appendix 29 29
Slide 30: Balance sheet snapshot
Balance sheet snapshot (5) PLN MM 2009 2010 2011 9M 2012 CAGR Balance sheet Cash and balances with central bank 220 476 449 702 52% Financial assets (1) 2,876 2,540 3,219 2,502 N/M Loans and advances to customers 2,667 5,532 10,135 13,537 81% Amounts due from banks 93 242 1,106 380 67% Intangible as
Slide 31: Income statement snapshot and key ratios
Income statement snapshot and key ratios (7) PLN MM 2009 2010 2011 9M 2012 CAGR Income statement Interest income 235 494 851 920 74% Interest expense (131) (189) (356) (402) 60% Net interest income 104 306 495 518 88% Net fee and commission income 41 159 340 334 121% Other income (8) 36 114 159 173
Slide 32: Shareholders and Corporate Governance structure
Shareholders and Corporate Governance structure Shareholding structure Governance structure Prior to the Offering Zygmunt Zaleski Stichting Audit Committee(2) 0.5% Società Camuna Performed by all 5 Management di Partecipazioni 2.0% 0.4% Supervisory Board Supervisory Board members Consists of 5–8
Slide 33: Highlights on management incentives
Highlights on management incentives The members of the Management Board and senior officers to receive shares whose value is equal to 20% of Carlo Tassara (“CT”) upside (calculated on the basis of IPO Revised existing price) vs. initial investment (“Incentive Shares”) Carlo Tassara 65% of the In
Slide 34: Overview of agency model
Overview of agency model Risk management and profitability Development of agencies All customer operations verified with 800 684 customer‟s credit card and pin 603 65 600 528 45 All agents are pre-checked by Alior‟s Anti- 438 16 Operational Crime Department 400 410 risk 292 304 350 Efficient s
Slide 35: Alior Bank's innovative approach to FX market
Alior Bank's innovative approach to FX market Why different? Alior - Market leader in innovation in FX market First bank in CEE which introduced algotrading system for FX trading Feb-09 Autodealing – first FX platform introduced Access to global services allowing to execute with e-banking acco
Slide 36: Alior is comfortably positioned for the difficulties in the Polish construction sector
Alior is comfortably positioned for the difficulties in the Polish construction sector Total exposure to construction sector (1) Construction sector coverage 9M 2012 As of end of September 2012, construction sector accounted for 20% of total corporate loan book balance Limited sheet exposure Off b
Slide 37: Polish macro environment remains highly attractive despite the turmoil in Western Europe
Polish macro environment remains highly attractive despite the turmoil in Western Europe Strong, crisis resilient GDP Strong and stable domestic Declining perception of Polish risk growth demand relative to GDP Real GDP growth (%) Domestic private consumption / GDP (%) CDS (bps) Poland Western Europ
Slide 38: Disclaimer
Disclaimer Neither this presentation nor any copy of it nor the information contained herein is being issued, and nor may this presentation nor any copy of it nor the information contained herein be distributed directly or indirectly to or into, the United States, Canada, Australia or Japan. By atte