Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (November 2012)
32 slides from Unicredit's debt investor presentation, November 2012
Slide 1: Presentation to Fixed Income Investors
UniCredit Group Presentation to Fixed Income Investors November 2012
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, p
Slide 3: Agenda
Agenda Introduction & Strategy 3Q 2012 Results Liquidity & Funding Annex 3
Slide 4: A clear international profile based on a strong European identity
A clear international profile based on a strong European identity UniCredit at a glance Shareholders’ structure(1) 3.2% Strong local roots in 22 European countries 22.5% Over 157,000 employees 32.7% About 9,400 branches 3.4% One of the most important bank in Europe with EUR 969 bln of total assets 3
Slide 5: UniCredit is a well diversified pan-European Commercial Bank
UniCredit is a well diversified pan-European Commercial Bank A unique positioning in mature Western European markets and fast growing CEE economies Italy (BBB+ rating) Rank & Market Share #2 with c. 13% Loans (bn) 277.3 Direct Funding (bn) 278.3 RWA composition (%) Total = 436.8 bn Germany (AAA rati
Slide 6: CEE Region: market leading franchise with a full coverage
CEE Region: market leading franchise with a full coverage Ranking, Employees and Branches by Country % Loans mkt share # 1 Franchise in CEE 10.0% ’sPoland #2 #2 Markets, Baltics, Baltics, #7 #8 #10 - #10 - 1.5% - 8.1% Czech 19,231 employees 200 185 employees employees 1.7% Czech Rep., Rep., #4 #4 Ru
Slide 7: UniCredit built on strong foundations
UniCredit built on strong foundations Successful consolidation domestically, in Western Europe and CEE as well Turnaround Consolidation Selective Growth Strengthening 1993 1998 2001 2005 2007 2009-11 Privatization Federal Group S3 Capital strengthening Central and Eastern Europe (CEE) Asset Manageme
Slide 8: UniCredit vision 2015
UniCredit vision 2015 …as part of the Strategic Plan presented in 2011 A rock solid European commercial bank Strengthened core client franchises with a unique geographical spread, focused on diversified Western European countries and high growth CEE economies Strong balance sheet A sound capital bas
Slide 9: UniCredit Strategic Plan
UniCredit Strategic Plan The implementation is well on track as proven by several successful actions in all four pillars Action/Event Vs Plan/Expectation Capital Increase = BALANCE SHEET STRUCTURE Capital Efficiency ▲ Liquidity / Funding Gap =/▲ Strict cost control = On-going branch SIMPLIFICATION &
Slide 10: Agenda
Agenda Introduction & Strategy 3Q 2012 Results Liquidity & Funding Annex 10
Slide 11: Executive Summary
Executive Summary Profitability holding up despite a difficult macroeconomic environment Balance sheet repositioning and effective cost management confirmed Net Profit recovering although still affected by difficulties in European economies, mostly in Italy. Net Operating Profit held up well thanks
Slide 12: Net Profit and Net Operating Profit
Net Profit and Net Operating Profit Profitability holding up despite a difficult macroeconomic environment Net Profit (mln) Net Operating Profit (1) (mln) Net of buy-back Buy-back One-Offs(2) Net of buy-back and one-offs Buy-back(3) 98.1% 335 +4.1% 1,418 169 74.7% 3,033 295 2,914 39 901 6.4% -3.0% -
Slide 13: Net Operating Profit Breakdown
Net Operating Profit Breakdown Effective cost management and resilient core revenues underpin results Deteriorating credit environment resulting in high levels of LLP Net Operating Profit Composition (mln) Net Operating Profit by region (mln) Buy-back(1) Net of buy-back Western Europe Net of buy-bac
Slide 14: Cost of Risk
Cost of Risk LLP at high level affected by a deteriorating macro environment Loan Loss Provisions (mln) – Group COR (bps) Cost of Risk (bps) Western Europe 3Q11 2Q12 3Q12 CEE & Poland 13.2% -1.8% 5,119 -5.2% 4,522 146 165 132 139 119 140 146 133 114 1,844 1,910 1,811 4,281 CIB F&SME CEE 3,669 1.575
Slide 15: Asset Quality
Asset Quality Stock grew mainly driven by Past Due loans inflows which explain most of the decline in coverage ratio (mix effect) NPLs (bn) +1.8% 42.1 44.8 45.6 Gross Impaired Loans (bn) +3.5% 77.7 80.4 71.6 Sept. 11 Jun. 12 Sept. 12 Coverage ratio 58.3% 56.5% 55.7% Other Impaired Loans (bn) Sept. 1
Slide 16: Balance Sheet structure
Balance Sheet structure Securities in issue up, with customers representing the bulk Securities in issue (bn) Net Interbank Position (bn) Financial investments(2) (bn) Including Overnight deposits with Central Banks(1) +2.7 bn 99,4 99,5 102,3 96,9 +2.5 bn 167 165 -34.1 163 163 -39.3 Wholesale 105 97
Slide 17: Volumes: Direct Funding steadily increase
Volumes Direct Funding steadily increase Customer loans (mln) Customer deposits (mln) -0.1% +0.9% +7.1% +0.7% 562,447 556,815 561,875 417,641 420,370 392,517 Western 474.076 460.926 464.601 Europe +0.8% Western 313.027 333.743 +97.4% 334.015 +0.1% Europe CEE & CEE & Poland 88,370 95,889 +1.4% 97,274
Slide 18: Capital position (1/2)
Capital position (1/2) Sizeable RWA reduction offsetting the regulatory impact of CRD3 RWA, eop (bln) RWA by risk category, bn Bis 2 Bis 2.5 Bis 2.5 460.4 CRD3 impact -2.5% 450.0 -12.2 447.7 19.9 436.8 0% Operat. 50.8 -12.4 52.4 +0.9 436.8 52.4 Market 11.6 -19.4% 23.7 19.1 440.5 383.0 371.7 -1.7% Cr
Slide 19: Capital position (2/2)
Capital position (2/2) UniCredit confirms its capital strength: CT1 at 10.67% under BIS 2.5, at 9.86% under EBA rules Capital Ratios UniCredit’s capital strength confirmed Bis 2 Bis 2.5 Bis 2.5 Core Tier 1 at 10.67% under BIS 2.5, at 9.86% at June 2012 under EBA rules - well above the required level
Slide 20: Agenda
Agenda Introduction & Strategy 3Q 2012 Results Liquidity & Funding Annex 20
Slide 21: UniCredit benefits from a well diversified funding platform
UniCredit benefits from a well diversified funding platform Group wide Liquidity Policy as well as a diversified funding by geography and type result in a prudent liquidity profile Liquidity Management and Funding access based on Four Liquidity Centers (data as of September 2012) ITALY (34% on Total
Slide 22: Medium-Long Term Funding Plan
Medium-Long Term Funding Plan 2012 Funding Plan implemented through high quality and diversified issuances Funding Mix % of MLT funding run-offs by Region(1) % MLT Network Bonds run-offs(2) 42 bn 31 bn 31 bn 30.0 11% Germany Austria 28.2 8% 29% 14% 16% 24.9 9% 7% 6% 7% Italy 60% 49% 29% 9% 53% 12% 3
Slide 23: Strong and stable retail and private banking customer funding
Strong and stable retail and private banking customer funding …with a still ample untapped capacity Network bonds Dec 11, % of TFA (1) Retail MLT Funding as % of Total Securities, Dec 11 79.8% 22.0% 72.6% 66.2% 18.0% 58.9% 16.8% 17.1% 56.4% 58.5% 16.3% 46.5% 12.8% 40.4% 10.7% 9.1% UCG Peer 1 Peer 2
Slide 24: Liquidity
Liquidity Sound position: 1Y Liquidity buffer exceeds 12m wholesale funding Liquidity buffer(1) (12 months), as of Sept ‘12, bn 162 Additional eligible assets 30.4 available within 12 months Cash and Deposits 42.3 with Central Banks 131.6 Unencumbered assets 89.3 (immediately available) Liquidity bu
Slide 25: UniCredit has continuous wholesale market access
UniCredit has continuous wholesale market access Strong debt market franchise confirmed Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 3y Sen 10y LTII 5y Sen (1.350) (1.250) (500 USD) 3y Sen 5.5y 10y 5y Sen 5y Pfand 7y Pfand (500) (10 bln (500) OBG Pfand (185 RUB) (1.000) (500) CHF) 5y Sen (1.5
Slide 26: Agenda
Agenda Introduction & Strategy 3Q 2012 Results Liquidity & Funding Annex 26
Slide 27: GROUP P&L
GROUP P&L Q3 Q2 Q1 Q4 Q3 Q2 Q1 Var. % 9M 9M Var. % (mln Euro) 2012 2012 2012 2011 2011 2011 2011 q/q y/y 2012 0 2011 0 y/y Net interest 3,594 3,690 3,790 3,817 3,827 3,900 3,880 -2.6% -6.1% 11,073 11,607 -4.6% Dividends and other income from equity investments 68 169 54 47 91 126 117 -59.9% -25.4% 2
Slide 28: GROUP BALANCE SHEET
GROUP BALANCE SHEET September June March December September June March December Var. (m ln Euro) 2012 2012 2012 2011 2011 2011 2011 2010 y/y % Cash and cash balances 6,160 31,477 19,669 9,728 5,566 6,596 5,982 6,414 +10.7% Financial assets held for trading 128,825 126,175 119,109 130,985 140,008 107
Slide 29: UniCredit Ratings Overview
UniCredit Ratings Overview UniCredit’s excellent diversification is a key rating strength, but the tough operating environment and Eurozone sovereign crisis are key concerns – UC SpA is somehow constrained by Italy’s ratings, but German and Austrian subsidiaries are rated higher Ratings Comments LT/
Slide 30: Italy's Macro Picture 1/3
Italy’s Macro Picture 1/3 Despite negative GDP growth, Deficit and Debt to GDP ratios under control Third largest economy in the Euro-zone; no housing sector bubble burst Deficit/GDP ratio is under control: 2011 stood at -3.8%, lower than the Euro-zone (4.1%)(1); 2012E improving at -2.7%, 2013E furt
Slide 31: Italy's Macro Picture 2/3
Italy’s Macro Picture 2/3 Italian total indebtedness is much lower than Spain’s and in line with Austria and France, yet with a sounder primary balance Public 440 Non Financial Private 104 359 Debt / GDP (%)(1) 109 293 253 263 77 248 237 217 86 93 118 97 336 81 250 217 162 170 135 140 137 Ireland Po
Slide 32: Italy's Macro Picture 3/3
Italy’s Macro Picture 3/3 Italian private sector debt is low when compared to EU peers Italian private sector debt with respect to GDP is Italian households’ low indebtedness goes along unimpressive, with the household sector among the with large financial wealth to show conservative least indebted
UniCredit Group — Debt Investor Presentation (November 2012) on 6ix