Investor Presentation

Transcription

1 Ukraine Investor Presentation March 2018

2 Disclaimer This presentation has been prepared and issued by PJSC ALFA-BANK, with registered office in Kyiv, Ukraine (hereinafter Alfa-Bank, Alfa-Bank Ukraine ). This publication is intended for private and institutional customers. Any information in this presentation is based on data obtained from public sources considered to be reliable, but no representations or guarantees are made by Alfa-Bank with regard to the accuracy, completeness or fairness and such information has not been independently audited and verified. The opinions and estimates contained herein constitute our best judgment as of the date of this presentation, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation. Alfa-Bank may use the information in this presentation prior to its publication to its customers. Alfa-Bank or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Alfa-Bank may also provide banking or other advisory services to third parties. Alfa-Bank, all its offices, employees of shareholders disclaim all responsibility or liability whatsoever for any expense, loss or damages incurred directly or indirectly out of, or in any way connected with, the use of all or any part of this presentation. 2

3 Ukrsotsbank and Alfa-Bank Ukraine: Leading and two of the most sustainable banks in Ukraine #1 #2 #3 #4 #6 Leading Bank with private ownership. Largest private Bank in terms of retail loan portfolio. The best Transaction Banking. The best Private Banking. Second largest private Bank by total equity. Third largest Bank in terms of retail accounts. Fourth Bank by assets. Notable Bank in terms of corporate loan portfolio. Notable Bank in terms of corporate accounts. Source: NBU data, company data as of Top 12 banks in terms of assets # Bank Ownership Amount, US$ bln Share, % 1 PrivatBank State Ukrainian % 2 Oschadbank State Ukrainian % 3 UkreximBank State Ukrainian % Ukrsotsbank and Alfa-Bank, estimated Privately owned Foreign % 4 Raiffeisen Bank Aval Privately owned Foreign % 5 UkrGasBank State Ukrainian % 6 Alfa-Bank Privately owned Foreign % 7 Ukrsibbank (BNP Paribas) Privately owned Foreign % 8 FUIB Privately owned Ukrainian % 9 SberBank of Russia State Foreign % 10 Credit Agricole Privately owned Foreign % 11 OTP Bank Privately owned Foreign % 12 UkrsotsBank Privately owned Foreign % Top 12 banks total % Banking system total % Adequate capitalization. Leading market position. Loyal substantial customer base. Broad & efficient distribution channels. Vast cross selling opportunities. 24/7 remote customer service channels. Modern IT solutions. Experienced & professional team. Successful credit history on domestic & international markets. Continuing cooperation with foreign counterparties in different markets. 3

4 Ukrsotsbank and Alfa-Bank Ukraine: Key Numbers + Total assets, US$ bln Rank in terms of assets Rank among international banks Rank among privately owned banks Market share in terms of assets, % Headcount > 4,000 > 6,000 > 7,900 Standard branch network >200 >100 >300 ATM network >700 >300 >900 Number of customers Corporate SME Individuals (active) Soft factors as of , source: company data Financial data as of , US$ 1 = UAH, source: >300 >4,500 >4,800 >3,000 >9,000 >12,000 >100,000 >700,000 >800,000 4

5 International ratings (last rating update ) Current Ratings Rating Outlook Long-term IDR* in foreign currency B- Stable Long-term IDR* in local currency B- Stable Short-term IDR* in foreign currency B na Long-term national scale rating AA(ukr) Stable Viability rating ccc RWE*** Support rating 5 na Current Ratings Rating Outlook Long-term IDR* in foreign currency B- Stable Long-term IDR* in local currency B- Stable Short-term IDR* in foreign currency B na Long-term national scale rating AA(ukr) Stable Viability rating ccc RWE*** Support rating 5 na Ukraine s current ratings Current Ratings Rating Outlook Current Ratings Rating Outlook Current Ratings Rating Outlook Long-term IDR* in foreign currency B- Stable Long-term foreign currency credit rating B- Stable Long-term Issuer Rating in foreign currency Caa2 Positive Long-term IDR* in local currency B- Stable * Issuer Default Rating ** Viability rating *** Rating Watch Evolving Long-term local currency credit rating B- Stable Long-term Issuer Rating in local currency Caa2 Positive 5

6 Alfa Group* Consortium and LetterOne Holdings S.A. Principal Businesses Alfa Group* Founders LetterOne Holdings S.A.** Shareholders Mikhail Fridman German Khan Alexey Kuzmichev Alfa Group* Consortium Other shareholders LetterOne Holdings S.A.** ABH Holdings S.A. is the holding company for the Alfa Group s banking business. Alfa-Bank is the well recognized and reputable brand with growing client base in 8 countries (Europe and CIS). Luxembourg-based asset management company for private and corporate clients in Europe. One of the leading private operators of water utilities in Russia. Services about 5 mln people. Operates in 7 cities of Russia. About 10,000 employees. One of the largest insurance companies in Russia with 270 offices and branches. Services more than 23 mln customers. US$1,377 mln premiums collected in Listed on LSE One of the leading food retailers in Russia. 9,187 company managed stores located in Russia. Revenue reached US$15,420 mln. Over 3 bln customer visits for More than 196,000 employees. Manages investment portfolios for a wide range of clients. 15 mutual investment funds. Assets under management amounted to more than RUR bln. Leading mineral water producer in Russia, Ukraine, Georgia and the CIS and Baltic countries. One of the leading investment businesses in Russia and the CIS. *Alfa Group is a combination of independent businesses, operating mainly in Russia and the CIS, whose main beneficial owners are Mikhail Fridman, German Khan and Alexey Kuzmichev. Besides these three individuals, there are other beneficiaries in some of the businesses. Alfa Group is not a legal entity. **LetterOne Holdings S.A. Founded in 2013.Its beneficial owners are Mikhail Fridman, German Khan, Alexey Kuzmichev and other shareholders. Assets under management - US$ 22.2 bln Investments in Energy, Telecoms and Technology, Health and Retail sectors 6

7 One of Europe s leading Banking groups as one of shareholders of ABH Holdings S.A. (ABHH) Shares in ABHH: Other Shareholders Mikhail Fridman % German Khan % Alexey Kuzmichev % Petr Aven % 9.9% % Luxembourg Ukraine Russia Netherlands Belarus Kazakhstan One of the leading commercial banks in Ukraine. The bank ranks among Top-10 largest banks in Ukraine according to the National Bank of Ukraine ranking. ABHH owns 90.1% share of ABU. One of the largest multifunctional universal banks in Ukraine. The bank ranks among Top-10 largest banks in Ukraine according to the National Bank of Ukraine ranking. ABHH owns 99.9% share of USB. One of the leading privately owned banks in Russia. The largest privately owned bank in terms of total assets, total equity, loan and deposit portfolios. ABHH owns 100% share of ABR. Amsterdam Trade Bank N.V. was incorporated in October 1994 in Amsterdam, and holds the full banking license from the Dutch Central Bank. ABHH owns 79.1% share of ATB. One of the largest banks in Belarus in terms of total assets, total equity, loan and deposit portfolios. ABHH owns 99.9% share of ABB. One of the most reliable and progressive banks in Kazakhstan, and a leading privately owned bank in Kazakhstan in terms of return of equity. ABHH owns 100% share of ABK. On 31 October 2016 ABH Holdings S.A. finalized the deal with UniCredit Group for the transfer of 99.9% of Ukrsotsbank to ABH Holdings S.A. in exchange for a minority, 9.9%, stake of UniCredit S.p.A. in ABH Holdings S.A. Presence of UniCredit Group, with its geographical footprint in 17 home countries worldwide and international network spanning 36 geographies, in ABH Holdings S.A. shareholding opens up unique opportunities of cooperation and experience interflow in countries of Western and Eastern Europe and CIS. 7

8 ABU and USB are ABH Holdings S.A. (ABHH) banking assets in Ukraine ABU s ultimate beneficiary ownership structure Mikhail Fridman 29.62% German Khan 18.89% Alexey Kuzmichev 14.7% Petr Aven 11.17% UniCredit S.p.A. 8.92% Other Shareholders 6.8% MSP Stiftung 9.9% 99.9% ABH Holdings S.A., Luxembourg (ABHH) 100% ABH Ukraine Ltd., Cyprus (ABHU) 90.1% MSP Stiftung, Liechtenstein 9.9% PJSC UKRSOTSBANK, Ukraine PJSC ALFA-BANK, Ukraine ABH Ukraine Ltd. MSP Stiftung Good and growing geographic coverage with well diversified operating assets (US$42bn)* in Europe and CIS. Over 36,400 employees* with 1,161 offices*. ABHU is a subholding company of ABHH and fully owned by it. ABHU owns 100% shares of Alfa-Bank (Ukraine). Alfa-Bank (Ukraine) is the key operating asset of ABHU. On 16 November 2017, the international investment foundation MSP Stiftung (Liechtenstein) became a shareholder of PJSC Alfa-Bank (Ukraine) having acquired 9.9% of its shares. Permanent innovations implementation in the holding s MSP Stiftung co-owns Sigma Kreditbank AG operating companies, reduce operational risks and (Liechtenstein) which specializes in retail lending. creates a standardized product lines available for Proven track record of recognized international It also owns around 25% in RHI Magnesita NV customers (over 17.9 mln corporate and retail capital markets deals. (Netherlands), a global producer of high-quality customers)*. refractory products used in high-temperature industrial processes. Source: * Company data as of

9 Proven track record of M&A activity 2016 ABH Holdings S.A. ("ABHH") that indirectly owns 100% shares in Alfa-Bank Ukraine (via the holding company ABH Ukraine Limited ( ABHU )) and UniCredit Group ("UCG") announced that they have signed an agreement for the transfer of 99.9% of USB (UCG's bank in Ukraine) in exchange for a minority 9.9% stake in ABHH. "This transaction is both tactical and strategic. It makes ABHH, a Luxembourg-based investment holding company, an unrivalled player in the Ukrainian market and makes UCG, the global Italian banking group, a shareholder in ABHH. We welcome UniCredit as a partner and look forward to utilizing their vast European experience across 17 countries and technological know-how to support ABHH's international growth. This transaction enables ABHH to create a leading retail and wholesale banking player in Ukraine with an unparalleled platform for growth and development", ABHH's Chairman Petr Aven noted Our shareholders plans still imply further growth and strengthening of the banking business in Ukraine, among other things via inorganic growth. The acquisition of Bank of Cyprus is fully consistent with these goals. In turn, the customers of Bank of Cyprus receive high level maintenance support, access to new services and wide range of products, CEO of Alfa-Bank Ukraine Rushan Khvesyuk commented M&A activity is an Alfa-Bank strategic direction, and we develop it as a separate business rendering these services to the entire market. In recent years, Alfa-Bank Ukraine both purchased portfolios in the banking sector (from such finance companies and banks as "ProstoFinance", "ProFinBank", "Prominvestbank", "Swedbank") and rendered the transaction support services to companies operating in various economic sectors, for example, retail trade", President of Alfa-Bank Ukraine Alexander Lukanov said. 9

10 History of successful development Alfa-Bank Ukraine & Ukrsotsbank Alfa-Bank Ukraine joined Alfa Group since January 2001, after having operated on the local market since Focus on the corporate business and launch of retail lending program. First Eurobond issue in Dec 2006 Jan 2007 and first syndication in Oct Universal development model, retail business active development and launch of SME program Customer base growth. Transaction business development. Asset quality improvement. Conservative approach to risk management. Cooperation with Deposit Guarantee Fund in terms of repayment deposits to the clients of bankrupted banks. US$ 300 mln loan for 5 years. US$ 10 mln share capital increase. 5 subordinated loans totaling US$ 67 mln. Ukrsotsbank was created in Sept 1990 as a result of reorganization of Zhylsotsbank of USSR. EBRD opened a credit line of US$ 10 mln for further crediting the Agroindustrial Complex. Attracted a syndicated loan of US$ 13 mln - first such deal among Ukrainian banks. Established its own processing center. TOP-10 in assets. 6 share capital increases totaling US$ 596 mln and 3 subdebts totaling US$ 181 mln. Attracted 3 syndicated loans on US$ 500 mln. Share capital increased to around US$ 400 mln. Focus on retail lending. About 95% of Ukrsotsbank's shares sold to UniCreditGroup. Issued Eurobonds on US$ 400 mln. EBRD loan US$ 25 mln, refinance mortgages. Portfolio purchases. 2 share capital injections for the total amount of US$ 209 mln. Is a leader on car lending market. Renovated UniCredit Bank was created in December 2013 through integration of two Ukrainian assets of UniCredit Group: PJSC "Ukrsotsbank" with the PJSC "UniCredit Bank. US$ 318 mln share capital increases and US$ 50 mln subdebt. Attracting of MSP Stiftung as a minority shareholder UniCredit's share in the registered capital of PJSC "Ukrsotsbank" increased to 99.4%. 3 share capital injections for the total amount of US$ 596 mln. + 10

11 Long-term strategic goals Complex services to large clients with individual solutions of payment facilities Professional team, effective management and high quality corporate governance Well recognized brand with timeproved image: reliable, modern, advanced, universal SME and MASS business focus with emphasis on transaction banking Strong track-record in retail segment Focus on remote channels and lending To become LARGEST universal foreign privately owned bank TOP-5 with 10% market share Focus on decision speed, effective service model A leading multichannel distribution platform with modern and userfriendly self services Effective distress assets management and risk policy Robust asset quality, strong capital and liquidity Focus on high tech and upgrade of the products, processes and distribution channels automation 11

12 Contact Details Public Joint-Stock Company "ALFA-BANK Desyatynna 4/6, Kyiv, Ukraine Investor Relations Tel.: Mr. Volodymyr Lototskyi Head of Treasury Tel.: Mrs. Olga Kharina Financial Institutions Tel.: Mrs. Tatyana Popovych Head of Capital Markets Tel.: Mr. Arthur Len Debt Instruments and Investor Relations Tel.: Mr. Dmitry Ocheretyany Foreign Currency Trading & Money Market Tel.: Mrs. Olga Kharriman Correspondent Relations Tel.: Mr. Sergey Kostin International Trade Finance Tel.: