Unicredit S.p.a. · MIL:UCG

Unicredit — Deutsche Bank Global Emerging Markets Conference 2015

26 slides from Unicredit's conference presentation, Sep 10, 2015

  1. Slide 1: UniCredit Group & CEE Division

    UniCredit Group & CEE Division Deutsche Bank Global Emerging Markets Conference New York, 10-11 September 2015

  2. Slide 2: Disclaimer

    Disclaimer This Presentation is based on data publicly available in the financial disclosure sources published by UniCredit Group. 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 w

  3. Slide 3: UniCredit Group at a glance

    UniCredit Group at a glance Group UCG is a leading European commercial bank operating in 17 countries with more than 146,600 employees1, about 8,200 branches2 and with an international network spanning in about 50 markets. Key financial highlights as at Jun-2015 1H15 Revenues up y/y thanks to higher

  4. Slide 4: UCG benefits from a strong European identity, with strategic positioning in Western and Central Eastern Europe

    UCG benefits from a strong European identity, with strategic positioning in Western and Central Eastern Europe Group Strategic positioning in 17 European countries gives UCG one of the region's highest market shares. Western Europe  Italy  Austria  Germany Central Eastern Europe  Azerbaijan  Bo

  5. Slide 5: Strategic Pillars

    Group strategy aimed at creating value leveraging on a strong franchise with a thorough risk management culture Group STRATEGIC PLAN 2013-2018 1 2 3 STRATEGIC PILLARS TRANSFORM COMMERCIAL INVEST IN BUSINESS LEVERAGE ON GLOBAL BANKING IN WESTERN GROWTH PLATFORMS MARKETS  Rebalance Group capital  Ma

  6. Slide 6: Agenda

    Agenda CEE Region CEE Division Annex 6 UniCredit Group - INTERNAL USE ONLY -

  7. Slide 7: History of CEE & Poland (CEE Region)

    History of CEE & Poland (CEE Region) A platform built and integrated since 1999. From 2008 onwards, management focus shifted to risk containment, portfolio optimization, organic growth and innovation CEE Region 1999 2002 2005 2007 2008-2010 2011-2014 2015-… PORTFOLIO GROWTH & ACQUISITION AND RESTRUC

  8. Slide 8: The geographic mix in CEE & Poland is a key success factor

    The geographic mix in CEE & Poland is a key success factor CEE Region Czech Republic Poland** Baltics* 9.4% market share #4 10.4% market share #2  Leasing 107 branches 1,015 branches Russia Slovakia  1.7% market share #9  6.9% market share #5  102 branches  77 branches Hungary  7.2% market

  9. Slide 9: CEE and Poland: UniCredit growth engines

    CEE and Poland: UniCredit growth engines Revenues and net operating profit increasing at higher pace vs. Group. FTEs and branches down mainly due to Ukraine (held for sale) CEE Region Revenues(1), m Net operating profit, m at const FX at const FX +0.9% -2.2% 11,387 11,484 2,798 2,737 Western Western

  10. Slide 10: Agenda

    Agenda CEE Region CEE Division Annex 10 UniCredit Group - INTERNAL USE ONLY -

  11. Slide 11: CEE Division at a Glance

    CEE Division at a Glance The leading bank in Central & Eastern Europe CEE Division % to total Key financial highlights as at Jun-15 1H15 Group Loans to customers: growing 9.7% y/y, and in line with prior Loans quarter at constant exchange rate 58.9bn 12.4% Risk Weighted Assets: significant growth dr

  12. Slide 12: CEE Division proves to have a sustainable business model

    Despite geopolitical and macroeconomic volatility CEE Division proves to have a sustainable business model CEE Division Loan market shares(1) Deposit market shares(1) +70 bp +100 bp 6.0% 5.7% 5.3% 4.7% Jun-14 Jun-15 Jun-14 Jun-15 Customer acquisition(2), m Loans/Direct Funding Ratio Loans, bn (3) Di

  13. Slide 13: UniCredit: a leader position in Central and Eastern Europe

    UniCredit: a leader position in Central and Eastern Europe CEE Division Data as of FY 14 Total assets(1) EUR, bn Net profit (2) EUR, m Number of branches Countries of presence(3) % in Group revenues (4) (5) UniCredit 116 142 116 958 2,463 13 19 17 (6) 80 79 252 2,852 17 81 -257 1,828 6 53 77 75 (6)

  14. Slide 14: Economic growth in Central Europe & South Eastern Europe on an improving path

    Economic growth in Central Europe & South Eastern Europe on an improving path while the whole CEE area is set for recovery from 2016 CEE Division Real GDP growth(1), % Cross-country breakdown(1) (2) CEE (3) 2015F 2016F CE & SEE 10 4 8 2.9 3.3 3.4 3.5 2.7 6 3 2.2 2.4 2.4 2.0 4 3.0 2 1.5 2.7 2.1 2 1 0

  15. Slide 15: CEE committed to a strong execution and to create sustainable value

    CEE committed to a strong execution and to create sustainable value CEE Division Achievements Current strategy 1 Leadership position in CEE 1 Building on our achievements  # 1 international player in CEE and among top 5 in 10  Aim to further strengthen our leading position in CEE & countries Polan

  16. Slide 16: Customer loans and direct funding

    Customer loans and direct funding Higher volumes y/y mainly driven by Russia and Czech Republic & Slovakia CEE Division Customer loans, bn By region y/y at const. FX at const FX 1H15 +9.7% -0.7% CEE Division 59 9.7% o/w 55.9 57.8 58.4 57.1 59.1 58.9 Russia 13 27.7% (2) Central Europe 18 5.4% (3) Sou

  17. Slide 17: Profit before tax

    Profit before tax Sound profit before tax in 1H15, supported by positive dynamics of operating profitability offsetting higher LLP at const. FX CEE Division By region y/y at const. FX 1H15 Profit before tax, m CEE Division 681 6.3% at const FX o/w +6.3% Russia 155 -15.7% 685 681 (1) Central Europe 2

  18. Slide 18: Total revenues

    Total revenues Sound revenue growth y/y at const. FX driven by NII and Trading CEE Division Revenues, m By region y/y at const. FX at const FX +8.5% 1H15 1,862 1,891 CEE Division 1.891 8.5% o/w Russia 376 17.9% NII 1,217 1,196 (1) Central Europe 548 9.0% 7.4% (2) South Eastern E. 786 5.6% (3) Turkey

  19. Slide 19: Operating costs

    Operating costs Cost increase below inflation at const. FX leading to better C/I ratio CEE Division Operating costs, m By region y/y at const. FX at const FX 1H15 +3.3% CEE Division 722 3.3% 738 722 o/w Non-HR 378 373 Russia 111 10.5% HR Costs 360 349 (1) Central Europe 226 6.9% 1H14 1H15 (2) South

  20. Slide 20: Cost of risk

    Cost of risk LLP increase y/y mainly related to coverage enhancement in Russia CEE Division Loan Loss Provisions, m CoR, bp By region y/y at const. FX By region y/y 1H15 1H15 CEE Division 394 37.4% CEE Division 135 bp +23 bp o/w o/w Russia 107 n.m. Russia 169 bp +95 bp (1) Central Europe 59 -34.2% C

  21. Slide 21: Concluding remarks

    Concluding remarks CEE CE Region Division UniCredit benefits from its strong footprint in CEE and Poland having the largest market share in volumes 1 and profitability The CEE journey of UniCredit started back in 1999 with the acquisition of Pekao in Poland, followed by 2 decade of expansion forming

  22. Slide 22: Agenda

    Agenda CEE Region CEE Division Annex 22 UniCredit Group - INTERNAL USE ONLY -

  23. Slide 23: Focus on Turkey

    Focus on Turkey Strong growth in revenues more than offset higher costs and LLPs Annex Macro data Macro comments Macro environment 2013 2014 2015F(1) 2016F(1)  Political and geopolitical uncertainty GDP Growth, y/y 4.20% 2.90% 2.70% 2.40%  Continued pressure on currency and rates Inflation (CPI),

  24. Slide 24: Focus on Russia

    Focus on Russia Resilient business with positive performance confirmed that UCG is better positioned than peers to weather a harsh environment Annex Macro data Macro comments Macro environment 2013 2014 2015F(1) 2016F(1)  Deterioration of economic environment, with 2Q15 GDP contracting by 4.6% y/y

  25. Slide 25: Focus on Central Eastern Europe (CE) & South Eastern Europe (SEE)

    Focus on Central Eastern Europe (CE) & South Eastern Europe (SEE) UCG managed to increase revenues, on the wave of overall improving macro environment Annex Macro data Macro comments Macro environment GDP real growth, y/y % 3.4  Strong economic rebound in all Central Europe 2.6 2.5 2.8 2.7 (1) coun

  26. Slide 26: CEE Division – P&L and volumes

    CEE Division – P&L and volumes Geographical diversification delivered continued improvement of operating profitability mitigating the impact of higher LLP (mostly related to Russia) Annex Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 ∆ % vs. ∆ % vs. 1H14 1H15 ∆ % vs. 1Q15 2Q14 1H14 Total Revenues 888 974 1

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