Banca Ifis S.p.a. · MIL:IF
Banca Ifis — MidCap Event Frankfurt (2009)
32 slides from Banca Ifis's conference presentation, 2009
Slide 1: Banca IFIS 4th Q. 2008
s bancalFIS ———— At Q. 2008
Slide 2: Highlights
Highlights The factoring market and group positioning Strategies Consolidated financial and economic data Attachments
Slide 3: The Credit Crunch: impact on Banca IFIS's activity
The “Credit Crunch”: impact on Banca IFIS’s activity The consequences for SMEs … the impact on Banca IFIS are … Significant increase in the Significant increase in credit risk connected to all spread (the higher cost of BANCA IFIS’s counterparties funding is more than BUSINESS MODEL compensated by r
Slide 4: The Credit Crunch: impact on Banca IFIS's liquidity
The “Credit Crunch”: impact on Banca IFIS’s liquidity Particular characteristics of Banca IFIS Total absence of securities portfolio: no derivatives, no mortgages, no long terms, no toxic assets Corresponding banks view Banca IFIS as an operator with short-term loan commitments (average duration of
Slide 5: Business model and growth opportunities
Business model and growth opportunities A business model that guarantees high … with high growth opportunities performance for a bank … based on Focused on enterprises Strong request for services from enterprises Excellent credit quality Low competition levels Short term lending Excellent capital st
Slide 6: High profitability and limited credit risk
High profitability and limited credit risk Net profit Non performing loans/Total loans % Millions of Euro 9 % = +3 008 -2 00 20 AGR C Note: since 2002, when the company became a bank, it has adopted stricter credit policies 6
Slide 7: The factoring market and group positioning
Highlights The factoring market and group positioning Strategies Consolidated financial and economic data Attachments
Slide 8: The market and group positioning
The market and group positioning Turnover in Italian factoring market 2007 Not only factoring equal to about 109.1 billion Euro (source - market Assifact); Loan commitments equal to 24 billion Euro (Banca IFIS estimation). + Italian short term commercial finance But even short term market 2007 equal
Slide 9: The factoring market and group positioning
The factoring market and group positioning The Italian factoring market of today is characterised by three types of operators: Factoring companies Captive factoring Independent operators belonging to banks companies or specialists - Intesa Mediofactoring - Serfactoring – ENI Group - Ifitalia - BNL G
Slide 10: The factoring market and group positioning (continued)
The factoring market and group positioning (continued) Dimensional approach Profitability approach (Group logic) (Independent) - The assigning enterprises are usually of a - The assigning enterprises are generally significant size and good credit standing small or medium enterprises - The assigned d
Slide 11: The sales structure
The sales structure 88 sales staff work in the 14 branches and the 5 territorial offices, who together constitute the largest specialised network in Italy. Staff remuneration is, on average, 35% linked to the achievement of the objectives predetermined by the budget. In 2008, agreements with brokers
Slide 12: Strategies
Highlights The factoring market and group positioning Strategies Consolidated financial and economic data Attachments
Slide 13: The guidelines
The guidelines “From a specialized bank to a relationship-based bank for SMEs” capitalising on market trends 1. Internal growth in core business 2. Internationalisation of core business 3. Extending the range of products offered 4. Expansion in funding sources 13
Slide 14: The new model
The new model From specialised bank to a relationship-based bank Perceived as a factoring Perceived as the answer to specialist for SMEs SMEs every financing and service need Relationships with the client are necessary to conclude Relationship with the client is factoring operations and, as the most
Slide 15: 1. Internal growth of core business
1. Internal growth of core business Reach potential clients through the reinforcement of the bank’s own network New branches and territorial offices: from 17 (14 branches and 3 territorial offices) at the end of 2008 to 28 at the end of 2010 In-house recruitment and selection Agreements with banks (
Slide 16: 2. Internationalisation of core business
2. Internationalisation of core business Lines of development: next steps Continue to work only with counterparties of high standing without any foreign exchange risk Due to the current international economic situation, the opening of a factor in Romania has been postponed until 2010 Kick off of Par
Slide 17: 3. Extending the range of products offered
3. Extending the range of products offered Products/services for the new policy of cross-selling and customer retention: Distribution of leasing (agreement already signed and actuated with Centro Leasing Banca throughout Italy) Insurance (already initiated as a additional to leasing) Medium/long ter
Slide 18: 4. Expansion in funding sources
4. Expansion in funding sources Banca IFIS’s financial need is very short-term: Average duration of loans to clients is 130 days: payment deadlines have been extended but the bank has reduced the delays granted to debtors (Maturity is a specific product of the bank dedicated to debtors with high cre
Slide 19: Targets for 2010
Targets for 2010 2007 Target 2010 2008 achievements Turnover Turnover + 100% 3.2 billion Euro 3.2 billion Euro No. of Clients No. of Clients + 100% approx. 1,900 approx. 2,300 Net banking Net banking Between income/Turnover income/Turnover 1.60% - 1.70% 1.70% 2.11% At least in line with Cost/Income
Slide 20: Consolidated financial and economic data
Highlights The factoring market and group positioning Strategies Consolidated financial and economic data Attachments 20
Slide 21: Consolidated income statement: 4th Quarter 2007/4th Quarter 2008
Consolidated income statement: 4th Quarter 2007/4th Quarter 2008 Consolidated income statement 4th QUARTER VARIATION € thousands 2008 2007 ABSOLUTE % Net banking income 17,416 15,836 1,580 10.0% Net impairment losses on loans and receivables (1,693) (717) (976) 136.1% Net profit from financial activ
Slide 22: Consolidated income statement 2005 - 2008
Consolidated income statement 2005 - 2008 Consolidated income statement YEAR € thousands 2008 2007 2006 2005 Net banking income 67,702 53,718 41,211 38,182 Net impairment losses on loans and receivables (6,403) (2,470) (1,788) (3,976) Net profit from financial activities 61,299 51,248 39,423 34,206
Slide 23: Financial figures: Analysis by Quarter
Financial figures: Analysis by Quarter In 2H 2008, risk repricing continued to show its positive effects Profitability: Quarterly evolution 2008 2007 € thousands 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. Net banking income 17,416 17,895 17,375 14,926 15,836 15,008 12,407 10,467 Profit
Slide 24: Consolidated balance sheet 2005 – 4th Q. 2008
Consolidated balance sheet 2005 – 4th Q. 2008 Consolidated balance sheet PERIOD € millions 31/12/08 31/12/07 31/12/06 31/12/05 Due from banks 188.1 312.1 267.3 128.8 Due from clients 1,008.6 923.1 783.0 710.9 Fixed assets 37.7 34.7 31.0 24.3 Other assets items 106.1 5.5 11.3 12.7 Total Assets 1,340.
Slide 25: Consolidated financial figures: Funding
Consolidated financial figures: Funding Substantial stability in availability: 1,168 million Euro Committed medium term lines equal 231 million Euro Weighted average duration (on an annual basis) equals 102 days Weighted average cost of funding for 4Q. 2008 is 70 bps more than the average Euribor 3M
Slide 26: Attachments
Highlights The factoring market and group positioning Strategies Consolidated financial and economic data Attachments
Slide 27: Banca IFIS milestones
Banca IFIS milestones 1983 The company, I.Fi.S. - Instituto di Finanziamento e Sconto S.p.A. -, was incorporated. 1989 IFIS shares received listing admission on the over-the-counter market of Milan. 1997 Registration in the list of financial intermediaries ex art 107 of the TULB (Consolidation Act f
Slide 28: What is factoring?
What is factoring? Supply of good/services ENTERPRISE’S ENTERPRISE (assigning supplier) CUSTOMER Debt (assigned debtor) Assignment of Payment of account debt receivables Financing Banca IFIS The assigning enterprise can gain quick access to credit for its liquidity needs A flexible tool that “teache
Slide 29: What is factoring for Banca IFIS?
What is factoring for Banca IFIS? Supply of good/services ENTERPRISE ENTERPRISE’S The assigning supplier is a CUSTOMER SME Debt Has a better credit standing Assignment of Payment of account debt receivables Financing Banca IFIS The current economic scenario, with a higher sensitivity to credit risk,
Slide 30: Clients and debtors
Clients and debtors Loan commitments broken down by clients (Turnover in millions of Euro) from 1 to 5 From 5 to 15 From 15 to 50 From 50 to 100 Over 100 Unclassifiable 19.5% 16.5% 4.4% 15.2% 26.3% 18.1% Total Outstanding for Standing Debtors as at 31/12/2007 The duration of factoring operations is
Slide 31: Risk assessment in factoring: The different approaches
Risk assessment in factoring: The different approaches Traditional risk Banca IFIS risk assessment assessment The 3 pillars of risk assessment NO Operation Assessment NO Operation Assessment of rejected of debtor rejected assignor YES YES Assessment of NO Operation Assessment of NO Operation receiva
Slide 32: Stable shareholders
Stable shareholders La Scogliera S.p.A. is controlled by Banca IFIS’s President - Sebastien Egon Fürstenberg. Giovanni Bossi, the C.E.O., has been the bank’s third largest shareholder since 1995. Shareholders The fact that Banca IFIS’s shareholder breakdown is so compact can allow for external growt