Procredit Holding Ag · XETR:PCZ
Procredit — Investor Day (October 2021)
17 slides from Procredit's investor day presentation, Oct 12, 2021
Slide 1: Key success factor: Credit risk management
Sandrine Massiani, Management Board Member Key success factor: Credit risk management Capital markets day, October 2021
Slide 2: Track record of high-quality loan portfolio based on prudent risk management
Track record of high-quality loan portfolio based on prudent risk management ProCredit loan portfolio with strong risk indicators … … leading to consistently low risk cost … Based on further reduced share of credit Development of default loan portfolio and PAR 30 impaired loans and loans in Stage-2;
Slide 3: Unique focus on SME clients and strong institutional setup as key success factors
Unique focus on SME clients and strong institutional setup as key success factors ProCredit key success factors of credit risk management Careful selection of clients Holistic client assessment Structured lending process Qualified staff 360° integrated view on client Comprehensive and Strict client
Slide 4: Key success factor: Careful selection of clients
Key success factor: Careful selection of clients 3
Slide 5: Strict client selection as basis for long-term client relationships
Strict client selection as basis for long-term client relationships Client selection is key ► Willingness to enter into a trustful long-term relationship as key precondition (openness, transparency, partnership approach) ► Minimum requirements (exclusion list) as well as value-driven aspects to ensu
Slide 6: Exclusion list (1/2)
Exclusion list (1/2) No business relationship shall be established or maintained with clients engaged in any of the following activities: Unethical practices and labour conditions: 1. Production or activities involving harmful or exploitative forms of forced labour/harmful child labour, discriminato
Slide 7: Exclusion list (2/2)
Exclusion list (2/2) No business relationship shall be established or maintained with clients engaged in any of the following activities: Activities having a negative impact on the community: 1. The production or trade in any product or activity deemed illegal under host country (i.e. national) laws
Slide 8: Key success factor: Holistic assessment of clients
Key success factor: Holistic assessment of clients 7
Slide 9: 360° integrated view on client situation in all cases
360° integrated view on client situation in all cases Clients’ overall needs apart of Ownership structure, management complementary to current request and capabilities & experience, organization of the potential future business with the client Client profile company (e.g. succession plan), Business
Slide 10: Strict standards for credit decisions – ESG criteria part of all decisions
Strict standards for credit decisions – ESG criteria part of all decisions Credit decisions based on 3 main principles … … with ESG criteria as integral part of decision-making process for all clients Focusing on the client – not the product ► Client-centric approach with time invested in client rel
Slide 11: Key success factors: Structured lending processes and qualified staff
Key success factors: Structured lending processes and qualified staff 10
Slide 12: Robust credit risk set-up combined with highly qualified staff
Robust credit risk set-up combined with highly qualified staff Highly structured processes in line with German requirements Strong focus on risk assessment within credit risk staff … Key components of structured lending and monitoring process 18 26 Risk assessment - Total number of medium clients cr
Slide 13: Green loan portfolio with increasing contribution to strong loan growth and low risk cost
Example 1: Green loan portfolio Green loan portfolio with increasing contribution to strong loan growth and low risk cost Three main categories of the ProCredit green loan portfolio with overall strong growth dynamics 22% Loan portfolio (€m) Share of total (%) >14k Energy efficiency number of green
Slide 14: Stringent credit risk set-up allowing for fast and individual actions during pandemic
Example 2: Covid-19 crisis management Stringent credit risk set-up allowing for fast and individual actions during pandemic Extremely robust processes even during unprecedented Case study: Restructuring during Covid-19 pandemic driven mainly by ► Close customer relationship ► Client: Spa and medical
Slide 15: Thank you for your attention
Thank you for your attention ProCredit Bank Romania
Slide 16: Notes and sources
Notes and sources Slide 2: "Development of default portfolio and PAR 30": No definition of default available before 2016; all numbers based on the scope of continuing operations as of today Cost of risk H1-21 annualized ProCredit Group | Capital markets day | Frankfurt am Main, 12 October 2021 1
Slide 17: Disclaimer
Disclaimer The material in this presentation and further supporting documents have been This presentation and further supporting documents may contain forward- prepared by ProCredit Holding AG & Co. KGaA, Frankfurt am Main, Federal looking statements including statements regarding our intent, belief