LATIN AMERICA MEETS CEE IN VIENNA Workshop Trade financing and export guarantees Georg Karner, Director Deputy Head of Export Finance at UniCredit Bank Austria AG, Vienna Vienna, 14th May,2012 AGENDA Introduction of UniCredit-Group International / CEE Network of UniCredit Group Global Transaction Banking Products & Services Structured Trade and Export Finance Specialists (network) Interaction of markets Latin America Austria CEE Attractivity of Austria as place of location Advantages Support / Promotion for foundation Greenfield development Stepping stone to CEE Latest Awards Contacts 2 1
UniCredit: a major Banking Group UniCredit at a glance UniCredit benefits from a strong European identity, extensive international presence and broad customer base. Its strategic position in Western and Eastern Europe gives the Group one of the region s highest market shares. Market leader in Central and Eastern Europe leveraging on the region s structural strengths Employees: appr. 160,000 * Branches: 9,508 * Banking operations in 22 countries International network spanning: about 50 countries Global player in asset management: EUR 171bn in managed assets * * as of 30 September 2011 3 UniCredit - International network 4 2
UniCredit - European banking network AT: UniCredit Bank Austria GE: UniCredit Bank IT: UniCredit CZ: UniCredit Bank AZ: Yapi Kredi Azerbaijan HU: UniCredit Bank Baltics: UniCredit Bank KZ: ATF Bank BIH: UniCredit Bank UniCredit Bank Banja Luka KG: UniCredit Bank BG: UniCredit Bulbank PL: Bank Pekao CRO: Zagrebačka banka RO: UniCredit Tiriac Bank RU: UniCredit Bank RS: UniCredit Bank SK: UniCredit Bank SI: UniCredit Bank TR: Yapi Kredi UA: UniCredit Bank Ukrsotsbank Core markets Countries where the Group operates via its own branches, subsidiaries, representative offices, consultants or delegates 5 The Leading Network in Central & Eastern Europe Ranking Total Assets ( mn) Market Share Offices Germany Italy Czech Republic Austria Poland Slovakia Estonia Latvia Lithuania Hungary Slovenia Croatia Romania Bosnia & Herzegovina Serbia Montenegro Macedonia Bulgaria Belarus Ukraine Turkey Russia Azerbaijan Kazakhstan The leading player in CEE: # 1 by assets, branches and net profit ~ 82 bn deposits from customers ~3,800 branches and ~70,000 FTE Within top 5 in 12 Countries 1) Poland 2 32,243 11% 1,003 2) Turkey 5 19,587 9% 963 o/w Azerbaijan 14 95 2% 7 Croatia 1 14,157 26% 136 Russia 8 18,484 2% 106 Czech Republic 4 11,197 6% 93 Hungary 7 5,397 5% 132 Bulgaria 1 6,085 16% 218 Kazakhstan 4 5,279 9% 143 o/w Kyrgyzstan 1 155 16% 40 Romania 6 5,288 6% 245 Ukraine 5 4,472 5% 442 Slovakia 5 3,851 7% 74 Slovenia 5 2,969 6% 28 Bosnia & Herzegovina 1 2,165 20% 134 Serbia 4 1,870 7% 75 Latvia 3) 10 839 1% 1 Estonia 8 na n.a. 1% 1 Lithuania 9 n.a. 2% 3 Rep. Offices Belarus Macedonia Montenegro 4) CEE Region - 138,027-3,802 6 Note: Data as of 31 December 2011, ranking and market share as of 30 September 2011 1) Poland (Bank Pekao) and its subsidiary in Ukraine (UniCredit Bank Ukraine) 3) Total Assets including Estonia and Lithuania under management of UniCredit 4) Rep. Office of UniCredit Russia 2) Total Assets pro quota 3
UNICREDIT GROUP S APPROACH IN CEE: 3 MAIN PILLARS We are the strongest banking partner in the CEE region. The success of our customers is in the focus of all our activities. We believe in the CEE region, not only from an economic point of view. We were one of the first banking partners of the CEE countries after the fall of the Iron Curtain. We built the leading Group in CEE and keep expanding. Today, we offer our customers a network of strong local banks forming the largest banking network in the CEE region: 19 countries about 3,800 branches about 70,000 employees We believe that customer satisfaction is the winning strategy. We use our international knowhow and our deep local roots to offer the best service to our customers: State-of-the-art the art products and services for retail customers. Unique integrated service for corporate customers with cross-border business. High local expertise, quick decisions. We feel at home in CEE, also apart of the business perspective. We want to be a gateway between the countries of our network and enhance the cultural exchange in Europe: Meeting Europe - Europa Forum event series Europe2read - the CEE publications of UniCredit Group Connecting Europe - region-wide cultural projects Social projects - UniCredit Group s Unidea foundation 7 Global Transaction Banking Products & Services Cash Management Transactional Sales & Trade Services Structured Trade and Export Finance (STEF) Global Securities Services (GSS) Corporate Cash Management Domestic Payments International Payments Collections SEPA Credit Transfers & Direct Debits Corporate Sight Deposits Account Keeping Bundled A/C packages Cash Pooling Card Acquiring Electronic Banking EuropeanGate GFI Products ECA Export Credit Accounts our/their Agency structured Foreign Bank Financing finance / project finance Clearing Bank to bank buyer s credit Benededuct & Rebates Bank to corporate/ Forfeiting and Trade sovereign buyer s credit Receivables Financing with Banks Ancillary financing (down payment and/or local Trade Finance Products costs) Documentary Collection L/C-post financing with Import/Export ECA-cover Import Letters of Credit Supplier s credit Export Letters of Credit acquisition of accounts Guarantees receivables Global Trade Forfeiting and Trade Management (Supply receivables financing Chain Finance/Trade with Corporates Purchase) @Globaltrade e-banking Commodity Trade Finance Other Trade/export finance loans Securities Clearing Settlement t Holding Services Global and Local Custody 8 4
Structured Trade and Export Finance (STEF) worldwide Core countries STEF Austria STEF Germany STEF Italy STEF Poland Hubs STEF New York STEF Hong Kong STEF Sao Paolo STEF Paris CEE STEF Bosnia and Herzegovina STEF Bulgaria STEF Croatia STEF Czech Republic STEF Estonia STEF Hungary STEF Kazakhstan STEF Latvia STEF Lithuania STEF Romania STEF Russia STEF Serbia STEF Slovakia STEF Slovenia STEF Turkey STEF Ukraine 9 INTERACTION OF MARKETS: LATIN AMERICA AUSTRIA - CEE In recent months, UniCredit Bank Austria AG has observed that several Latin American companies, mainly Brazilian companies have increasingly established holding companies in Austria. This is among others based on the fact that the double tax treaty between Austria and Brazil is favourable. These companies act mainly as European headquarters and they also use banking services. UniCredit Bank Austria AG has dedicated colleagues who are responsible for such companies for offering a wide range of banking services in UniCredit s home markets, such as: M&A A, Project and investment financing, Export finance solutions, Receivables financing, Forfaiting Leasing Documentary business (Letters of Credits, Guarantees, Documentary Collections) Payments and cash pooling short term deposits and F/X- and interest rate hedging. UniCredit Bank Austria AG offers an excellent support, especially in cooperation with the Structured Trade and Export Finance specialists of the UniCredit-network network in several CEE countries which bring following added value for exporters, importers and investors with regards to banking solutions: global expertise combined with local know how (including legal aspects according to local law) bringing partner s together, risk evaluation / risk sharing UniCredit Bank Austria AG can furthermore rely on excellent expertise and long lasting relationship to Export Credit Agencies, European development and promotion programmes and to the private insurance market 10 5
Headquarters Location Austria Advantages (1) Austria: Attractive for Headquarters more than 300 well known companies have their regional (CEE) headquarters in Austria, e.g. Siemens, Panasonic, Nokia, Nestlé, Magna, Volvo, Bosch, DHL, Mondi, UniCredit, etc. CEE Headquarters Location in the Heart of Europe Austrian Key Facts: 8.4 mio. inhabitants in Austria 48.2 mio. inhabitants within 400 km Austria GDP growth 3.1% (2011) Austria GDP / capita: approx. EUR 30,200 Austria - Emergence of GDP: Agriculture: 1.5 % Industry: 29.6 % Services: 68.9 % Austria R & D-quota: 2.73 % of GDP 187 destinations from & to Vienna Airport 90 mio. consumers within 1 hour! 420 mio. consumers within 2 hours! 760 mio. consumers within 3 hours! 11 Headquarters Location Austria Advantages (2) International Vienna: The Conference City and HQ-location for international organizations, e.g.: The only UN headquarters in the EU Many UN organizations in Vienna, e.g. UNIDO, UNODC, UNCITRAL, etc. More than 25 HQs of international organizations, such as OPEC, OSCE, etc. Highest economic and social stability: Highly motivated and educated people Excellent infrastructure (logistics, transport, telecommunication, banking, consulting) Reliable legal system Very low strike rate High personal security Efficient public administration (Austria = European e-government champion) Moderate taxation on corporate profits and group taxation maximum taxation on profits in Austria 25 % A strong position according to the World Competitiveness Yearbook 2010 on productivity and efficiency Austria number 2 behind USA, but before Switzerland, Germany and France! Competitive office rents reduce your operating costs Austria worldwide leader in quality of life! 12 6
Headquarters Location Austria support for foundation The Austrian Business Agency (ABA), a consulting company (limited liability) for international investors owned by the Austrian Ministry of Economic Affairs provides for: Consulting services free of charge on all issues in the context of Austria as a business location Support in setting up a company Site identification / real estate Consulting on incentives / financing Tax and labor issues Support in obtaining licences / permits R & D Headquarters in Austria can be promoted by hard cash / low interest loans for your innovative investments as follows: New technologies / innovative projects Research and development Education Environmental protection Exports and internationalization Special subsidies for SME 13 Greenfield development in Austria In Austria there are according to the EU competition right defined regional development areas where a regional aid scheme is provided. Some examples for these areas: The province of Burgenland Northern and southern Lower Austria North-west of Upper Austria Some regions in Styria 14 7
Greenfield development in Austria In these areas with less developed economy some aid facilities for realizing greenfield projects are available such as: ERP loan: a mid term loan with a fixed interest rate below market level Liabilities of the Republic of Austria (up to 80% of a loan`s amount) via aws, the state owned economic promotion agency Grants for creating new jobs Grants from the EU Fund of Regional Development for relevant projects 15 Headquarters Location Austria stepping stone to CEE Austria, situated in the heart of Europe, is the ideal location to capture the markets of CEE and SEE In case your HQ in Austria wants to establish a subsidiary or a Joint Venture in one or more CEE-/SEE-markets, UniCredit Bank Austria AG supports with advice and tailor made financing solutions using the wide range of EU-, Austrian- and regional promotion possibilities: European Competence Centers: UniCredit Bank Austria AG provides a special network of European Competence Centers (ECCs) in CEE. The members of these ECCs give advice on all questions in relation to the available EU promotion (targets, criteria, process of application of the facilities) and possible national aids for investment projects and certain measures of corporates in the CEE countries. Financing of foreign direct investments: UniCredit Bank Austria AG, in cooperation with Oesterreichische Kontrollbank AG (OeKB) and/or Austria Wirtschaftsservice GmbH. ( aws ), provides for very attractive long term (up to 25 years, usually 5-10 years) financing of an equity investment (up to 100%) of an Austrian company in a foreign company by granting a shareholder loan for the setting up of production facilities, distribution facilities, etc., based either on a guarantee (G4) or a bill guarantee commitment of the Republic of Austria, issued by OeKB, or a guarantee undertaken by aws 16 8
Awards Trade & Forfaiting Review Best Forfaiting Institution Trade & Forfaiting Review Best Trade Bank in Eastern Europe (including Russia and CIS) Trade Finance Magazine Best Forfaiting Institution 2010 & 2011 Trade Finance Magazine Best Trade Bank in Eastern Europe and CIS 2010 & 2011 Trade Finance Deal of the year 2010 Chelyabinsk Metallurgical Plant Global Trade Review Best Trade Bank in Eastern Europe 2010 & 2011 Global Trade Review Best Forfaiting House 2011 17 Contacts at UniCredit Bank Austria AG, Vienna Nikolaus Somogyi, First Vice President, Corporates I phone +43 (0)50505 42715 nikolaus.somogyi@unicreditgroup.at Ewald Grünzweig Head of Export and Investment Promotion Finance phone +43 (0)50505 44420 ewald.gruenzweig@unicreditgroup.at Georg Karner Deputy Head of Export Finance phone +43 (0)50505 56911 georg.karner@unicreditgroup.at 18 9