Polbank EFG Acquisition Overview - Conference Call 4th February 2011
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Polbank EFG Acquisition Overview
Conference Call
4th February 2011
Disclaimer
Certain statements contained herein may be statements of future expectations and other forward-looking statements about RBI and its affiliates, which are based on management's current
views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in
such statements. In addition to statements which are forward-looking by reason of context, words such as "may", "will", "should", "expects", "plans", "contemplates", "intends", "anticipates",
"believes", "estimates", "predicts", "potential", or "continue" and similar expressions typically identify forward-looking statements.
By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in
the future. As such, no forward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of
operations, financial condition, liquidity, and the development of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements
contained herein.
These factors include, without limitation, the following: (i) our ability to compete in the regions in which we operate; (ii) our ability to meet the needs of our customers; (iii) our ability to
complete acquisitions or other projects on schedule in general and to integrate our proposed acquisition in Poland in particular; (iv) uncertainties associated with general economic
conditions particularly in CEE; (v) governmental factors, including the costs of compliance with regulations and the impact of regulatory changes; (vi) the impact of currency exchange rate
and interest rate fluctuations; and (vii) other risks, uncertainties and factors inherent in our business.
Subject to applicable securities law requirements, we disclaim any intention or obligation to update or revise any forward-looking statements set forth herein, whether as a result of new
information, future events or otherwise.
This document is for information purposes only and shall not be treated as giving investment advice and/or recommendation whatsoever. This presentation and any information (written or
oral) provided to you does not constitute an offer of securities, nor a solicitation for an offer of securities, nor a prospectus or advertisement or a marketing or sales activity for such securities.
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For the United Kingdom: This presentation and related material, including these slides, (these "Materials") are for distribution only to persons who are members of RBI falling within Article 43(2)
of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order") or who (i) have professional experience in matters relating to
investments falling within Article 19(5) of the Financial Promotion Order), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of
the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21
of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such
persons together being referred to as "relevant persons"). These Materials are directed only at relevant persons and must not be acted on or relied on by persons who are not relevant
persons. Any investment or investment activity to which these Materials relate is available only to relevant persons and will be engaged in only with relevant persons.
The presentation contains financial information and data relating to Polbank, which are pro-forma and extracted from the consolidated accounts of EFG Eurobank Ergasias S.A. Financial
information relating to RBI herein are pro-forma and based on historical data of Raiffeisen International Bank-Holding AG and Raiffeisen Zentralbank Österreich AG prior to the effective date
of the merger on 10 October 2010. Such information and data are presented for illustrative purposes only.
We have exercised utmost diligence in the preparation of this presentation. However, rounding, transmission, printing, and typographical errors cannot be ruled out. We are not responsible or
liable for any omissions, errors or subsequent changes which have not been reflected herein and we accept no liability whatsoever for any loss or damage howsoever arising from any use of
this document or its content or third party data or otherwise arising in connection therewith.
Group Investor Relations 4th February 2011 Slide No 1
Polbank: A Well-Positioned Retail Franchise
Highlights Key Financials (in € mn)
Successful greenfield operation launched in 2006 and 2008 2009 1-9/2010
developed into 14th largest bank in Poland by total assets
Net interest income 132 130 112
Focussed business model oriented to retail and small
Net fee and commission inc. 74 39 31
business customers
Operating result 53 39 40
In addition, strong complementary offering to affluent
customers, primarily young and well-educated Gen. admin. exp. (152) (130) (107)
Prov. for imp. losses (37) (88) (72)
Countrywide branch network of 344 outlets serves ~800,000
customers Profit before tax 17 (49) (32)
Loans to customers 4,059 4,489 5,007
Strong multi-channel distribution approach including over 130
telemarketing agents and 100 mobile advisers Total assets 4,922 5,359 5,537
RWAs 3,334 3,738 4,173
Experienced local core management team
Source: Eurobank EFG reporting (all data based on IFRS if not stated differently)
Market Positioning Loan Book Profile (Q3 2010)
Asset split NPL ratio
Retail Lending #8 Player / 4.2% Market Share
10.67%
Micro Corporate 5.93% 4.03%
13% 2%
Consumer Lending #7 Player / 2.7% Market Share
0.59%
Mortgages #7 Player / 5.2% Market Share Consumer
Micro
Mortgages
Corporate
Consumer
19%
SME #5 Player / 6.4% Market Share Mortgages
66%
Retail Deposits #9 Player / 2.9% Market Share Total: EUR 5.0 bn Total: EUR 144 mn
Source: Polbank (all data based on IFRS if not stated differently) Source: Eurobank EFG reporting (all data based on IFRS if not stated differently)
Group Investor Relations 4th February 2011 Slide No 2
Convincing Strategic and Financial Rationale
Acquisition of Polbank clears the way for RBI to reach a leading position with 1 mn customers
in a major CE market with significant growth potential
Largest economy in Central Europe
Growth potential
Important market
with strong growth Only economy in Europe which avoided recession
potential
Poland
Poland expected to outperform Eurozone economies in the mid-term
Banking intermediation at 84% of GDP provides significant structural upside potential
Attractive growth (Eurozone average 267% of GDP)
outlook for banks
Sizable and growing affluent and SME client base in Poland
Creation of a Combined market share of RBPL and Polbank based on total loans amounts to 6.3% and a
leading bank in Top 4 position with 1 mn customers
Creation of a leading
Poland Strong distribution footprint with combined number of 443 outlets and a lean cost structure
market player
Polbank provides a well-positioned retail franchise with significant synergy potential
Significant synergy
High client cross-referral potential due to complementary strategic focus
potential
After operational merger cost synergies of EUR 60 mn p.a. estimated
Strong deposit generating capabilities based on broad distribution capacities of Polbank
(EUR 3.1 bn deposits from customers gathered since inception)
Perfect strategic fit
Compelling merger logic of strong Corporate/SME business in Raiffeisen Poland and pure retail
footprint in Polbank
Group Investor Relations 4th February 2011 Slide No 3
Envisaged Transaction Structure
Current Structure Acquisition of 70% Stake Contribution of Businesses Operational Merger
Eurobank Cash Eurobank Eurobank Eurobank
RBI RBI RBI RBI
EFG EFG EFG EFG
100% 100%1 100% 70% 30% 87% 13% 87% 13%
Combined
RBPL Polbank RBPL Polbank RBPL
bank
100% Combined
bank
Polbank
Polbank currently RBI acquires a 70% stake Eurobank EFG and RBI Operational merger of
operating as branch of in Polbank against cash contribute their RBPL and Polbank
Eurobank EFG at closing respective shareholdings Put option for Eurobank
Process of transformation Eurobank EFG remains a in Polbank in exchange EFG to dispose of stake
of branch into legal 30% shareholder for new shares in RBPL in the combined bank at
entity ongoing in Polbank Eurobank EFG becomes any time; call option for
Transformation process a 13% shareholder of RBI starting from 31
dependent on change RBPL March 2016; respective
of law exercise prices
dependent on
performance, but no less
than EUR 175 mn based
on guaranteed minimum
1) Subject to completion of transformation of Polbank branch into a legal entity equity
Group Investor Relations 4th February 2011 Slide No 4
Purchase Price & Valuation
EUR 490 mn for 70% in Polbank payable at closing
The remaining 30% Eurobank EFG stake in Polbank will be exchanged for 13% in the combined RBPL-
Polbank operations
Put option for Eurobank EFG to dispose of their 13% stake in the combined bank at any time; call
option for RBI starting from 31 March 2016
Respective exercise price depends on business performance resulting in a price/book multiple in the
Purchase Price range of 1.0x to 2.65x, with a minimum exercise price of EUR 175 mn
Considerations
Guaranteed minimum equity of EUR 400 mn for Polbank and EUR 750 mn for RBPL
Implied price/book multiple would be 1.7x. However, final price/book multiple at closing might be
different, depending on the final capital requirements. Both parties will contribute any additionally
required capital in excess of the guaranteed minimum equity proportionally to their shareholdings
without any premium
In addition, a special indemnity has been agreed to mitigate potential risks stemming from the
mortgage portfolio
Closing of the transaction dependent on successful transformation of Polbank branch into a legal
Closing entity (not expected before Q4 2011) and regulatory approvals from EU, Greece and Poland
Requirements
The transaction is expected to close in Q4 2011 or Q1 2012
Group Investor Relations 4th February 2011 Slide No 5
RBI’s Growth Story Continues
Czech
Hungary Poland Bulgaria Russia Romania Serbia
Republic
Greenfield
Slovakia Croatia Ukraine
1987
1987 1991
1991 1993
1993 1994
1994 1996
1996 1998
1998 2000
2000 2001
2001 2002
2002 2003
2003 2004
2004 2005
2005 2006
2006 2011
2011
Bosnia and
Slovenia Kosovo Belarus Ukraine Poland
Herzegovina
Acquired
Romania Albania Czech
Republic
Russia
Selective expansion strategy at reasonable prices
RBI has a strong track record in terms of the integration and managing of businesses in CEE
Group Investor Relations 4th February 2011 Slide No 6Raiffeisen Poland: Focused Corporate Bank
Highlights Successful Corporate Bank
Raiffeisen Poland is a corporate focused bank High quality corporate bank in Poland, servicing Polish
Strong corporate banking platform mid-sized and larger corporates
Market leading leasing and factoring businesses Market share of 5.0% in corporate lending
Strong SME expertise (#5 corporate bank in Poland)
Particular expertise in project finance with 25%
Growing retail business focused on affluent customers
market share of total customer loan volume
and micro business
Despite strong 20% CAGR in lending over the past
Product specialist in client-related treasury solutions
decade, Raiffeisen Poland has a healthy loan portfolio
(FX transactions)
NPL ratio for corporates just half of the banking sector
Sound profitability, even through the crisis
average (banking sector: 11.9% as per Sept. 2010)
Split Operating Income (1-9/2010) Operating Income in Corporate Segment (1-9/2010)
Other
Loans
10% 18%
Cash
Leasing Management
Corporate 20%
15% Project
40%
Finance
13%
Private Treasury Products
individuals 29% Trade Financing
16%
SME Deposits and Factoring
8% 12%
19%
Total: EUR 241 mn Total: EUR 96 mn
Source: Based on RBI pro-forma Q3 2010 figures (country data Poland) Source: RBPL
Group Investor Relations 4th February 2011 Slide No 7Enhanced Market Position
Creation of universal bank with comprehensive product range
Enhanced market position driven by diversified business and risk profile
Leveraging of retail customer portfolio for cross selling initiatives
Total Assets (in PLN bn) Customer Loans (in PLN bn) Customer Deposits (in PLN bn)
PKO BP 166.9 PKO BP 126.7 PKO BP 131.6
Pekao 134.6 Pekao 82.8 Pekao 101.0
BRE 84.4 BRE 54.6 ING BSK 47.7
ING BSK 62.2 Combined 40.6 #4 BRE 44.5
BZ WBK 55.5 Millennium 35.4 BZ WBK 39.5
Combined 48.2 #6 ING BSK 33.3 Getin Noble 34.3
Millennium 44.8 BZ WBK 33.2 Millennium 33.1
Kredyt 43.1 Getin Noble 30.9 Combined 26.9 #8
Citi Handlowy 41.3 BPH 28.3 Kredyt 25.7
Getin Noble 39.0 Kredyt 26.6 Citi Handlowy 23.6
BPH 36.1 20.3 #10 BGŻ 20.1
BGŻ 26.6 20.3 14.4 #11
#11
26.0 #12 BGŻ 19.4 BPH 13.9
Nordea 22.6 12.4 #13
Nordea 18.8
22.1 #14 BOŚ 11.3
Deutsche Bank PBC 17.1
Deutsche Bank 19.6 Deutsche Bank 10.1
BNPP Fortis 13.3
Source: Rzeczpospolita (Q3 2010); commercial banks only
Note: Figures relating to RBPL (Bank only)
Group Investor Relations 4th February 2011 Slide No 8Important Market with Strong Growth Potential
Share of GDP in CE (2010e) GDP Growth Inflation and Interest Rates
Slovenia 8.0% 7.0%
Slovakia
5% 6.8%
10% 7.0% 6.0%
6.2%
Hungary 6.0%
5.3% 5.1% 5.0%
14% Poland 4.0%
4.5% 4.4%
51% 5.0%
3.9% 4.0%
3.9%
4.0% 3.6% 3.6%
Czech 3.0% 3.3% 3.5% 3.3%
Republic 3.0% 3.0%
20%
1.7% 2.0% 2.3%
2.0%
GDP per Capita (2010e in EUR ‘000) 1.7%
1.0% 1.0% 1.4%
22.1 0.7%
19.2 0.0% 0.0%
17.1
15.4 15.5
2003
2004
2005
2006
2007
2008
2009
2011f
2012f
2010e
2003
2004
2005
2006
2007
2008
2009
2010e
2011f
2012f
Real GDP growth in Poland (%) CPI inflation in Poland (%)
Polish GDP growth rate spread above Euroland GDP NBP base rate in Poland (%)
growth rate (%)
Poland
Hungary
Slovakia
Slovenia
Republic
Czech
Largest and strongly growing economy in Central Europe
Resilient performance of Polish economy in the crisis avoiding recession
Source: Raiffeisen Research Expected to outperform European economies strongly in mid-term
Group Investor Relations 4th February 2011 Slide No 9Attractive Growth Outlook for Banks
Banking Market Underpenetrated Loan Growth in Poland (in PLN bn)
5.8% 627.9 4.8% 658.3
593.4
267%
38.7%
427.7
3.2x
151%
132%
2.9x 5.3x
84%
46% 2.0x
40% 2007 2008 2009 Q3/2010
20% 28%
Source: KNF (Polish Banking Supervision)
Deposit Growth in Poland (in PLN bn)
Total Loans/ Mortgages/ Deposits/
assets/GDP GDP GDP GDP 560.0 2.0% 571.4
13.3%
17.8% 494.1
419.3
Poland Eurozone average
Source: Raiffeisen Research (data as per 2009)
5.1% 1.7% 3.6%
Significant catch-up potential due to continued low
level of bank intermediation
Loan and deposit growth consistently outperformed
GDP growth over the last few years 2007 2008 2009 Q3/2010
Unemployment rate forecast to decline from 11.9% in Source: KNF (Polish Banking Supervision)
Real GDP growth y-o-y for 2008 and 2009 as well as 2010e
2010e to 10.0% in 2012f % Source: Raiffeisen Research
Group Investor Relations 4th February 2011 Slide No 10Enhancement of Distribution Network
Full Countrywide Presence Ranking of Banks in Poland by Outlets (Q3 2010)
Market
No. of outlets
Position
Poland: 38.2 mn
1.7 1 1,211
Warsaw 2 1,016
3 612
Combined:
53 4 546
5 513
0.8 6 472
Łódź 7 463
Combined: / 4431
12 8 441
9 440
10 383
11 344
12 307
0.8
13 276
Kraków
14 235
Combined:
15 200
18
16 160
17 155
18 99
Cities with Raiffeisen presence 19 99
Cities with Polbank presence
Note: Bank outlets only
Number of inhabitants (mn) 1) Including leasing: 467 outlets
Source: Rzeczpospolita, KNF, Company information
Group Investor Relations 4th February 2011 Slide No 11Polbank: Strong Multi-Channel Distribution
High aided brand awareness of 66%
Strong retail brand Sponsoring of the Polish Ski Federation and Justyna
Kowalczyk (Poland’s most successful cross-country
skier) further improved brand awareness
Nationwide distribution network of 344 outlets
Distribution network 323 branches
overview 14 mortgage centres
7 SME business centres
State-of-the-art design of branches
Specialist desk facilities including affluent customers
In-branch facilities desk
Instant in-branch card issuance facilities
24 hour ATM lobby, with pay-in facilities
Located in major Polish business areas
SME business centres
Business centres located in large business parks
E-banking services available to all clients (36%
active E-banking users)
Around 100 phone banking advisers
Other distribution
channels Highly productive distribution workforce with over
130 telemarketing agents and over 100
mobile advisers
Point-of-Sale network with over 7,000 terminals
Source: Eurobank EFG
Group Investor Relations 4th February 2011 Slide No 12Recognised Innovation Leaders
Polbank Raiffeisen Poland
Successful co-branding strategy with ERA (one of the Cutting edge fully transactable iPhone/iPad banking
largest mobile carriers in Poland) apps at the forefront of the industry
Implementation of PayPass functionality in Polbank –
ERA cards
Golden banker awards 2010 (Bankier) Adviser to the Polish Banking Association on IT Security
Best small business bank 2010 (Forbes) IT leader 2009 (Computerworld)
3rd best innovation for Minikarta ERA PayPass (Bankier)
Source: RBPL, Eurobank EFG
Group Investor Relations 4th February 2011 Slide No 13Key Financials
Key Financials (1-9/2010) Polbank Gross Loan Growth (in € mn)
5,103
Raiffeisen Combined 4,573 120
4,097 99 686
(IFRS, EUR mn) Poland Polbank bank 83 630
606 945
Net interest income 129 112 241 1,078
1,106
Net fee and comm. inc. 95 31 126 1,670
313 31 3,352
Net trading income 14 0 14 2,302 2,766
730
Other net op. income 3 2 5 231
596
Operating income 241 146 387 2006 2007 2008 2009 Q3/2010
General admin. exp. (133) (107) (240) Mortgages Consumer Micro Corporate
Operating result 108 40 148
Net inc. from fin. inv. and deriv.1 3 0 3 Polbank NPL Development vs. Market
Provisioning for imp. losses (52) (72) (124)
8.3% 8.6%
Profit before tax 60 (32) 28 7.7% 7.9%
Consolidated profit 46 (26) 20
Equity (incl minorities) 652 390 1,042
2.8% 3.0% 3.3%
Loans to customers 5,084 5,007 10,091 2.4%
Customers deposits 3,477 3,111 6,588
Total assets 6,516 5,537 12,053 Dec 09 Mar 10 Jun 10 Sep 10
RWA 5,026 4,173 9,199
Polbank Polish market
Employees 3,074 2,867 5,941
Strong increase in loan volumes up to mid-year 2010,
Outlets 123 344 467
to EUR 5.1 bn
1) Net income from financial investments and derivatives NPL ratios below average among others due to the high share of
Note: Based on Eurobank EFG and RBI group reporting (country data Poland) mortgages
Group Investor Relations 4th February 2011 Slide No 14Polbank: Attractive Client Base
Development of Polbank’s
Pick-up of Highlights
customer base (‘000)
growth [momentum] [Graph
Attractive
on revenue/branch
Client Base For or
Cross
cross-selling]
Selling
793
656 45%
37%
486
29%
19%
203
12% 11%
45
Market
Polbank
Market
Market
Polbank
Polbank
2006 2007 2008 2009 Q3 2010
t
e
rk
a
M
t
e
rk
a
M
t
e
rk
a
M
b
l
o
P
k
n
a
b
l
o
P
k
n
a
b
l
o
P
k
n
a
Monthly Net House- University Less than
hold Income >PLN5k degree 35 years old
Source: Eurobank EFG Source: Eurobank EFG
Attractive client base offers significant potential for continued cross-selling (funds, insurance)
Group Investor Relations 4th February 2011 Slide No 15Polbank: Lean Cost Structure
Development of Number of Outlets Split Administration Expenses (1-9/2010)
Other
344 Marketing 1%
330 335
252 9%
IT
11%
Staff
43%
Other
office &
infrastr.
17%
Premises
19%
2006 2007 2008 2009 Q3/2010
Total: EUR 98 mn1
Source: Eurobank EFG Source: Eurobank EFG
1) Excluding depreciation
General Admin. Expenses per Outlet in EUR ’000 (Q3 2010)
Significant expansion of branch network since
847
inception of Polbank in 2006 completed
634 595
512 Cost of expanding the network currently still
418 impacts profitability
Lean cost structure vs. peers despite ongoing
expansion
Polbank Peer 1 Peer 2 Peer 3 Peer 4
Platform ready to benefit from expected market
growth
Source: Eurobank EFG, Company reports
Note: Peer group consists of Bank Millennium, BPH, Getin and Kredyt Bank
Group Investor Relations 4th February 2011 Slide No 16Polbank: Details on Mortgage Portfolio
Mortgages Breakdown by Currency 90+ dpd Development Mortgages
Existing Portfolio New Production
0.6%
PLN PLN CHF
0.5%
6% 9% 11%
EUR
18%
0.3% 0.3%
0.2% 0.2%
CHF
76% EUR
80%
Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010
Total as of Q3 2010: EUR 3.4 bn Total 1-9/2010: EUR 368 mn
Source: Based on Eurobank EFG data Source: Based on Eurobank EFG data
Loan-to-value Structure Mortgages
Polbank’s mortgage portfolio mainly denominated
0.59% in CHF
102%
Maturity profile of mortgage loans mitigates risks
81% related to short-term FX fluctuations
CHF mortgages have performed better in the
crisis due to stricter regulatory underwriting
requirements (e.g. lower debt-to-income ratio)
and a better client profile
Weighted average LTV (at inception) Weighted average LTV (Q3 2010) Significant shift towards EUR and PLN in
NPL ratio (Q3 2010) new production
Source: Based on Eurobank EFG data
Group Investor Relations 4th February 2011 Slide No 17Polbank: Funding Overview
Structure of Funding (Q3 2010) Deposit Development (in € bn)
2% 169% 161%
+17%
3.1
2.7
37%
61%
Customer deposits EFG funding Other liabilities Dec 09 Sep 10
Total: EUR 5.1 bn Loan/deposit ratio
Source: Based on Eurobank EFG data Source: Based on Eurobank EFG data
Assets and Liabilities by Currency (Q3 2010)
Total Assets Total Liabilities
EUR EUR Other Strong focus on customer funding
13% 10% 1%
Successful additional deposit generation
CHF
36%
especially in Q3 2010 (+16%)
CHF Currency position matched despite large CHF
50% loan portfolio
PLN
37% Current shareholder funding of Eurobank EFG
PLN
53%
amounting to EUR 1.9 bn to be replaced
by EUR 1.0 bn RBI funding at time of closing of the
CHF EUR PLN Other
transaction, with proportional funding to be
Source: Based on Eurobank EFG data
adopted over time
Group Investor Relations 4th February 2011 Slide No 18Impact Analysis on Funding Base
Deposits Raiffeisen Poland/Polbank (in € mn) Loan and Deposit Generation in 1-9/2010 (in € mn)
154% 167% 153% 518
6.4 6.6 456
5.9
2.8 3.1 269
2.6
3.6 3.3 3.5
Mar 10 Jun 10 Sep 10 (47)
Raiffeisen Poland Polbank
Raiffeisen Poland Polbank
[x]% = Loan-to-Deposit Ratio Combined bank Change in Loans Change in Deposits
Source: Eurobank EFG and RBI group figures pro forma Q3 2010 (country Source: Eurobank EFG and RBI group figures pro forma Q3 2010 (country
data Poland) data Poland)
RBI: Loan-to-Deposit Ratio Development
140% 139% Very limited overlap of client base
136% 137%
Focus on continued increase of deposit base
Improved access to primary deposit funding
through universal banking approach of combined
bank
Mar 10 Jun 10 Sep 10 RBI adjusted
Sep 101
Loan-to-deposit ratio at Group level minimally
1) Adjusted for loans and deposits of Polbank
affected
Source: RBI figures based on pro forma Q3 2010
Group Investor Relations 4th February 2011 Slide No 19Value Creation through Potential Synergies
Overview Cost/Income Ratios Key Areas for Synergy Potential
Streamlining of branch structure
133 107 240 Branches / (~ EUR 12 mn p.a.)
Head Office Optimisation of head office functions
74%
55% 62% (~ EUR 17 mn p.a.)
(~ EUR 35 mn
p.a.) Consolidation of premises
(~ EUR 6 mn p.a.)
Approx 20% of IT savings through
Raiffeisen Poland Polbank Combined bank IT Infrastructure integration of IT platforms and procure-
1-9/2010 1-9/2010 1-9/2010 & Marketing ment synergies (~ EUR 15 mn p.a.)
(~ EUR 25 mn Reduction of marketing expenses and
Cost base in EUR mn (1-9/2010)
p.a.) savings in treasury area (~ EUR 4 mn p.a.)
Source: Eurobank EFG and RBI group figures pro forma Q3 2010 (country
data Poland)
Group & other synergies (~ EUR 6 mn p.a.)
Total: ~ EUR 60 mn
Key Assumptions
Estimated savings of EUR 60 mn p.a. which Volume of estimated synergies fully in line with average
represents approx 30% of Polbank’s cost of precedent transactions (30% of Polbank’s cost base)
base in 2012 Further synergies expected from additional cross-selling
Volume and client referrals
First year of synergies in 2012
2012: EUR 30 mn Additional revenue synergies due to lower funding costs
2013 onwards: EUR 60 mn p.a. Extension of the successful cooperation with UNIQA
(insurance company of Raiffeisen Banking Group Austria)
Integration A total of EUR 90 mn is estimated for
cost 2012/2013
Group Investor Relations 4th February 2011 Slide No 20Acquisition Impact on RBI
Pro-forma Core Tier 1 Capital Impact (based on Q3 2010)
With a pro-forma core tier 1 ratio (incl. profit but
excl. accrued dividends) of 9.1%, we continue to
9.7%
(0.6)PP feel comfortably capitalised
9.1%
No capital increase planned in the near term
Insignificant impact on Basel III ratios
No material impact on loan-to-deposit ratio and
cost/income ratio
Current shareholder funding of Eurobank EFG
amounting to EUR 1.9 bn to be replaced by EUR
1.0 bn RBI funding at time of closing of the
transaction, with proportional funding to be
adopted over time
Pro-forma Core Tier 11 ratio Pro-forma Core Tier 11 ratio
pre transaction RBI post transaction RBI
1) Core tier 1 ratio including profit but excluding accrued dividends
Note: All figures on this page are pro forma, based on Q3 2010
Group Investor Relations 4th February 2011 Slide No 21Perfect Strategic Fit
Strengths of Raiffeisen Poland Business Model Strengths of Polbank Business Model
Focussed PI banking platform
with nationwide branch network
Strong corporate banking
platform Significant upside Strong product and sales
from expansion in capabilities in Retail Banking
Comprehensive product
offering for corporates
retail business Leading market position with
for Raiffeisen Poland self-employed and small
Market leader in leasing and businesses
factoring 1 mn customers
Strong potential for cross-selling
Focus on SME and mid-market Significant upside
opportunities in retail
from expansion in
Experience in providing Sizeable affluent customer base
comprehensive services to
corporate banking
premium affluent customers for Polbank Strong deposit gathering
capabilities
Group Investor Relations 4th February 2011 Slide No 22Appendix
Country Financials Poland
in EUR mn Q3/2010 Q2/2010 change Q1/2010 Q4/2009 Q3/2009 1-9/2010 1-9/2009
Total assets 6,516 6,375 2.2% 6,408 6,241 6,155 6,516 6,155
Loans and advances to customers 5,084 4,956 2.6% 4,983 4,820 4,784 5,084 4,784
- Hereof Corporate % 58.9% 66.7% (7.8)PP 67.9% 69.7% 70.4% 58.9% 70.4%
- Hereof Retail % 40.1% 33.3% 6.8PP 32.1% 30.3% 29.6% 40.1% 29.6%
- Hereof FCY % 36.3% 39.1% (2.8)PP 36.9% 38.4% 38.2% 36.3% 38.2%
Deposits from customers 3,477 3,340 4.1% 3,610 3,524 3,375 3,477 3,375
Operating income 79 86 (7.7%) 77 77 71 241 196
- Net interest income 46 44 4.9% 39 39 32 129 84
- Net fee and commission income 33 33 (0.5%) 30 36 33 95 85
- Net trading income 0 7 (98.7%) 7 7 7 14 25
- Other net operating income 0 2 (88.8%) 1 (5) (1) 3 2
Provisioning for impairment losses (17) (15) 12.6% (19) (24) (18) (52) (52)
General administrative expenses (43) (45) (5.4%) (45) (39) (38) (133) (110)
Net income from fin investm. and derivatives 0 (0) - 0 0 0 (0) 0
Profit before tax 22 25 (9.9%) 13 14 13 60 31
Profit after tax 16 20 (17.2%) 10 10 10 46 24
1, 2
Return on equity before tax 12.3% 11.9% 0.4PP 8.1% 8.2% 7.6% 12.3% 7.6%
1, 2
Return on equity after tax 9.4% 9.4% 0.0PP 6.2% 6.1% 5.8% 9.4% 5.8%
1
Loan/deposit ratio 146.2% 148.4% (2.1)PP 138.0% 136.8% 141.8% 146.2% 141.8%
1
Cost/income ratio 55.1% 55.5% (0.4)PP 58.1% 54.8% 56.4% 55.1% 56.4%
Business outlets 123 125 (1.6%) 126 124 125 123 125
Number of employees 3,074 3,008 2.2% 3,028 3,007 2,969 3,074 2,969
Number of customers 240,959 244,333 (1.4%) 256,193 274,567 290,143 240,959 290,143
Note: All data, except P/L, are dated to the end of the period 1) Ratios are based on cumulated (ytd) figures 2) Annualized
Total Assets Share of Total Loan/Deposit Net Interest Margin Provisioning Ratio
1-9/2010 (€ mn) Assets Ratio (annualized) (annualized) NPL Ratio Coverage Ratio
Poland 6,516 4% 146% 2.68% 1.55% 6.5% 59.3%
Group Investor Relations 4th February 2011 Slide No 24Contact Susanne E. Langer Head of Group Investor Relations Spokesperson Raiffeisen Bank International AG A-1030 Vienna, Am Stadtpark 9 Tel.: +43 1 71707 2089 Fax: +43 1 71707 2138 ir@rbinternational.com susanne.langer@rbinternational.com www. rbinternational.com Group Investor Relations 4th February 2011 Slide No 25
H. Stepic CEE Charity – A chance for a
better life
H. Stepic CEE Charity was founded to implement charity
projects in CEE
Assists disadvantaged women, children and youths by
helping them to help themselves
Projects are executed in an unbureaucratic, quick and
cost-effective manner
How you can help:
Donate to help the underprivileged
Become a member
Spread the message
www.stepicceecharity.org
Raiffeisenlandesbank Niederösterreich-Wien; H. Stepic CEE Charity; Sort Code: 32000, Acct. no.: 100099; BIC: RLNWATWW, IBAN: AT483200000000100099
Group Investor Relations 4th February 2011 Slide No 26You can also read
