Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (June 2021)
46 slides from Unicredit's debt investor presentation, June 2021
Slide 1: Investor Presentation: Inaugural Senior Preferred Green Bond
Investor Presentation Inaugural Senior Preferred Green bond under UniCredit's Sustainability Bond Framework June 2021
Slide 2: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 2
Slide 3: Executive Summary
Executive Summary Executive summary ▪ Sustainability Bond Framework (‘SBF’) as a key milestone of UniCredit’s Environmental, Social and Governance (ESG) strategy Sustainability ▪ SBF is a Group-wide framework for the main issuers UniCredit S.p.A., UniCredit Bank AG and UniCredit Bank Austria AG Stra
Slide 4: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 4
Slide 5: UniCredit on track to achieve 2023 sustainability targets
UniCredit on track to achieve 2023 sustainability targets ESG Strategy & Profile 2019 1Q21 2023 ▪ Thermal coal mining and coal fired power plant projects exposure1, % Coal policy Revised Coal policy As of 2020 0 ▪ Exposure to renewable energy sector2, bn 7.2 6.4 >9 On Track ▪ New origination of ener
Slide 6: Strong footprint across Environmental, Social and Governance areas
Strong footprint across Environmental, Social and Governance areas ESG Strategy & Profile Figures as of 1Q21 E S G Environmental Social Governance 32.6bn of green/sustainable/ESG-linked loans 11.2bn social bonds led by UC for its customers, 5 Fully dedicated ESG Board Committee, as spin- led by UC f
Slide 7: Delivering on commitment to sustainability with clear ESG roadmap
Delivering on commitment to sustainability with clear ESG roadmap ESG Strategy & Profile Appointment of Roberta E Revised coal policy with coal • New Board of Directors: reduced to 13 members, G E Marracino as Head of sector total phase out by 2028 wider international representation, 46% females Joi
Slide 8: Strong corporate governance supporting integration of ESG in strategy
Strong corporate governance supporting integration of ESG in UniCredit’s strategy ESG Strategy & Profile Organisational and governance structure ESG GOVERNACE ESG as essential factors for long-term growth and sustainability and fully Board of Statutory CHAIRMAN Auditors integrated in strategy, core
Slide 9: ESG Strategy Council supervising ESG roadmap working group
ESG Strategy Council supervising ESG roadmap working group ESG Strategy & Profile ▪ Newly constituted ESG Committee in the BoD, as spin-off of the former Corporate Governance, Nomination and Sustainability Committee Strengthened ▪ ESG Strategy Council composed of a subset of Group Executive Manageme
Slide 10: Adding value to resources for all stakeholders through UniCredit's business model
Adding value to resources for all stakeholders through UniCredit’s business model ESG Strategy & Profile Input Resources Community impacts financial resources generated by own banking activities ▪ solid balance sheet with very strong ▪ support for the economy Financial Capital used to support medium
Slide 11: Strong and continuous environmental, social and reputational risk management and policies
Strong and continuous environmental, social and reputational risk management and policies ESG Strategy & Profile Environmental, social and reputational risk Policies Scope and objectives management ▪ Economic, financial and non-financial risks are Equator Principles ▪ framework of standards for dete
Slide 12: UniCredit adheres to the highest global standards in industry collaboration
UniCredit adheres to the highest global standards playing an active role in industry collaboration for greater sustainability ESG Strategy & Profile Key institutional initiatives Key environmental and social initiatives Shifting to a low-carbon economy 2019: endorsement of Task Force on Climate-Rela
Slide 13: UniCredit's contribution to UN Sustainable Development Goals
UniCredit‘s contribution to UN Sustainable Development Goals ESG Strategy & Profile The scope of our footprint CLUSTER & MATERIAL TOPICS RELEVANCE FOR OUR STAKEHOLDERS United Nation (‘UN’) Agenda 2030 (agreed in 2015) is an INNOVATION FOR CUSTOMERS ambitious catalogue with 17 Sustainable Development
Slide 14: ESG ratings and indices (1/2)
ESG ratings and indices (1/2) ESG Strategy & Profile ▪ Ahead of most international peers (pay practices and board structure) in terms of A CCC B BB BBB A AA AAA governance ▪ In Nov 20 ESG Risk Rating improved to “22.1” from “25.3” Medium Severe High Med Low Neg ▪ Medium exposure to and strong manage
Slide 15: ESG ratings and indices (2/2)
ESG ratings and indices (2/2) ESG Strategy & Profile ▪ Top rated Italian bank, with an EE+ rating. Regarded as an example of European EE+ excellence in terms of sustainability F FF FFF E EE+ EEE (Very strong) ▪ Strong compliance and ability to manage reputational risks linked to the United Nations,
Slide 16: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 16
Slide 17: The Framework links the Bank's business with the UN SDGs
UniCredit believes in the effectiveness of the sustainable finance market – The Framework links the Bank’s business with the UN SDGs Sustainability Bond Framework The four components of the Sustainability Bond Framework1 for Key features and rationale the issuance of Green, Social & Sustainability B
Slide 18: Strong portfolio of green and social assets reflecting sustainability strategy
UniCredit has a strong portfolio of green and social assets reflecting its sustainability strategy Sustainability Bond Framework Green Eligible Categories Examples of Eligible Projects Social Eligible Categories Examples of Eligible Projects Renewable energy ▪ Renewable energy production: i) onshore
Slide 19: Sustainability Bond Panel ensures sound governance and project selection
A Sustainability Bond Panel will ensure sound governance of the Framework and Project Evaluation & Selection Sustainability Bond Framework 1 2 3 4 The assets are approved in compliance The relevant business lines identify the The Sustainability Bond Framework The Sustainability Bond Panel with UniCr
Slide 20: Robust allocation and tracking of proceeds
UniCredit will ensure a robust and solid allocation and tracking of proceeds Sustainability Bond Framework The Working Group of each issuing legal entity of the bank will track investments in selected assets recorded in the Sustainability Bond Register. The Sustainability Bond Register of each issui
Slide 21: Annual Bond Allocation Reports and Bond Impact Reports
UniCredit is committed to disclose its Bond Allocation Reports and Bond Impact Reports annually Sustainability Bond Framework Total amount of bond outstanding Total amount allocated to Eligible Projects Total amount allocated per Eligible Category Reporting The remaining unallocated total amount The
Slide 22: ISS ESG's Second Party Opinion confirms alignment with market best practice
ISS ESG’s Second Party Opinion confirms UniCredit’s Sustainability Bond Framework to be fully aligned with market best practice Sustainability Bond Framework ISS ESG‘s assessment – key summary ✓ Part I – UniCredit’s ESG strategy: UniCredit shows a very high sustainability performance against the ind
Slide 23: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 23
Slide 24: ESG issuance will be a recurring part of funding activity
ESG issuance will be a recurring part of UniCredit’s funding activity Inaugural Green Bond Transaction ▪ UniCredit SpA acts as Group Holding, Italian operating bank and TLAC/MREL issuer under Single-Point-of-Entry (‘SPE’) framework ▪ Coordination of Group-wide funding and liquidity management optimi
Slide 25: 2021 TLAC and MREL funding plan
2021 TLAC and MREL funding plan Inaugural Green Bond Transaction UniCredit SpA 2021 TLAC/MREL funding plan, bn Main drivers 2021 Already Still to funding issued in be issued ▪ 2021 issuance plan will be more skewed towards MREL plan 20212 in 2021 instruments in preparation of the upcoming intermedia
Slide 26: EUR 8bn of Identified Eligible ESG Assets across the Group
EUR 8bn of Identified Eligible ESG Assets across the UniCredit Group Inaugural Green Bond Transaction UniCredit Group Eligible ESG Assets3 per Entity UniCredit Group Eligible ESG Assets3 Breakdown Healthcare SOCIAL GREEN Renewable energy 12% Details in next slide Social Assistance Clean transportati
Slide 27: Qualifying eligible assets for inaugural Green Bond
Qualifying eligible assets for UniCredit SpA’s Inaugural Green Bond Inaugural Green Bond Transaction UniCredit SpA Overall Qualifying Assets UniCredit SpA Qualifying Assets eligible for bond issue Sum of Green Assets Renewable energy 1.1bn (22%) 22% Green 13% Assets 33% Green building 2% 7% 1.1bn Cl
Slide 28: Project Examples: Renewable Energy
UniCredit SpA’s Project Examples: Renewable Energy Inaugural Green Bond Transaction Eligible Categories Renewable Energy Renewable energy: PLT Wind project including 6 SPVs owners of wind farms located in Description of project the South of Italy Location: Calabria and Basilicata, Italy Installed ca
Slide 29: Indicative Termsheet of Inaugural Green Bond
Indicative Termsheet of UniCredit Inaugural Green Bond1 Inaugural Green Bond Transaction Issuer UniCredit SpA Format Green Senior Preferred Regulatory Intended to be TLAC/MREL eligible Issue Ratings (M/S/F) Baa1/BBB/BBB- ESG Bank Ratings ISS ESG (C) / MSCI (A) / / Sustainalytics (22.1 - Medium risk)
Slide 30: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 30
Slide 31: A simple successful pan-European Commercial Bank
A simple successful pan-European Commercial Bank UniCredit Group Overview Mission UniCredit is a simple successful pan-European Commercial Bank, with a fully plugged-in CIB, delivering a unique Western, Central and Eastern European network to its extensive and growing client franchise. Total Revenue
Slide 32: Strong 1Q21 underlying net profit of 0.9bn
Strong 1Q21 underlying net profit1 of 0.9bn UniCredit Group Overview Revenues up 7.1% Y/Y driven by excellent fees and buoyant trading results offsetting persistent net interest headwinds Significant positive operating jaws with costs down 3.1% Y/Y resulting in C/I ratio at record 51.5% Seasonally l
Slide 33: Underlying RoTE at 6.9% driven by higher revenues and seasonally low CoR
Underlying RoTE at 6.9% driven by higher revenues and seasonally low CoR UniCredit Group Overview 1Q20 4Q20 1Q21 %∆ vs 4Q20 %∆ vs 1Q20 Revenues, bn 4.4 4.2 4.7 +10.6% +7.1% Costs, bn -2.5 -2.5 -2.4 -1.8% -3.1% CoR, bps 104 179 15 -165 -89 Underlying net profit1, bn -0.2 0.2 0.9 n.m. n.m. Gross NPE,
Slide 34: FY21 underlying net profit broadly in line with guidance
FY21 underlying net profit broadly in line with previous guidance Strategic review expected to be concluded in 2H21 UniCredit Group Overview Underlying net profit1 broadly in line with previous guidance Total revenues broadly in line with consensus(a) Outlook FY21 Costs confirmed in line with FY19 U
Slide 35: Strong and disciplined liquidity steering
Strong and disciplined liquidity steering UniCredit Group Overview 1Q21 strong liquidity buffer1, bn 1Q21 Compliant with key liquidity ratios, % 260 Additional eligible assets available 20 Group LCR3 Group NSFR4 within 12 months2 183% >100% Cash and Deposits with Central Banks 167 240 Unencumbered a
Slide 36: 1Q21 TLAC buffer at 775bps
1Q21 TLAC buffer at 775bps UniCredit Group Overview Transitional Total Loss-Absorbing Capacity, % Buffer Regulatory requirement Actual data 27.30% 24.80% 2.50% 3.20% 775bps 775bps 2.80% 15.92% 16.54% 2.25% +63bps 689bps 751bps 19.55% 17.05% 9.03%1 9.03%1 1Q21 Additional 1Q21 Additional Tier 1 Tier 2
Slide 37: Rating agencies acknowledge improved asset quality and capitalisation
Rating agencies acknowledge improved asset quality and capitalisation UniCredit Group Overview BBB/Stable/A-21 Baa3/Stable/P-31 BBB-/Stable/F31 Covered Bonds (Italian OBGI/ OBGII) 2 AA-/n.r. Aa3/Aa3 AA-/n.r. Counterparty/ Deposit rating3 BBB+ Baa1 BBB Senior Preferred/ Outlook/ Short-Term BBB/ Negat
Slide 38: Contacts
Contacts Group Investor Relations Group Finance Global Syndicate & Capital Markets Christian Kuhner Alessandro Brusadelli Pietro Bianculli Head of Fixed Income and Ratings Head of Group Finance Head of SSA/FI Bond Syndicate christianulrich.kuhner@unicredit.eu alessandroercole.brusadelli@unicredit.eu
Slide 39: Agenda
Agenda Executive summary ESG Strategy & Profile Sustainability Bond Framework Inaugural Green Bond Transaction UniCredit Group Overview Annex 39
Slide 40: Key social and environmental impact indicators (I/II)
Examples of potential key social and environmental impact indicators include (I/II) Annex Eligible Sustainable Categories Examples of Potential Key Environmental Impact Indicators • Annual GHG emissions reduced/avoided in tonnes of CO2 equivalent Renewable Energy • Annual renewable energy generation
Slide 41: Key social and environmental impact indicators (II/II)
Examples of potential key social and environmental impact indicators include (II/II) Annex Eligible Sustainable Categories Examples of Potential Key Environmental Impact Indicators • Number of beds Social Assistance • Number of beneficiaries Education • Number of students served Affordable housing •
Slide 42: Group P&L
Group P&L Annex Data in m ∆ % vs ∆ % vs 1Q20 4Q20 1Q21 4Q20 1Q20 Total revenues 4,378 4,238 4,687 +10.6% +7.1% Operating costs -2,493 -2,458 -2,415 -1.8% -3.1% Gross operating profit 1,885 1,780 2,272 +27.7% +20.6% LLPs -1,261 -2,058 -167 -91.9% -86.7% Net operating profit 624 -278 2,105 n.m. n.m. O
Slide 43: End notes (1/3)
End notes (1/3) End notes Please note that numbers may not add up due to rounding, and some figures are managerial. These notes refer to the metric and/or defined term presented on page 5 (2023 ESG targets): 1. Based on New Coal Policy issued in 2Q20: o Zero general financing in all cases of expansi
Slide 44: End notes (2/3)
End notes (2/3) End notes Please note that numbers may not add up due to rounding, and some figures are managerial. This note refer to the metric and/or defined term presented on page 24 (Diversified funding and liquidity profile): 1. Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungar
Slide 45: End notes (3/3)
End notes (3/3) End notes Please note that numbers may not add up due to rounding, and some figures are managerial. These notes refers to the metric and/or defined term presented on page 35 (Strong and disciplined liquidity steering): 1. Managerial figures. 2. Unencumbered assets are represented by
Slide 46: Disclaimer
Disclaimer This Presentation includes “forward-looking statements” which rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of UniCredit S.p.A.