GETIN UP GETIN NOBLE BANK’S STRATEGY FOR 2013 – 2015 5 MARCH 2013 AGENDA Getin Noble Bank’s strategy assumptions and objectives Bank’s starting position Bank’s strategy AMBITION ONE BILLION IN CONSOLIDATED NET PROFIT ~50% INCREASE ~50% DECREASE ~DOUBLED ROE IN INTEREST INCOME IN IMPAIRMENT CHARGES ~50% ~2x 1.8 b PLN ~50% >15% 1.2 1200 b m PLN PLN 970 m 7.8% PLN 550 m PLN 2012 2015 2011 2012 2015 2012 2015 OBJECTIVE: REACH THE EXPECTED PROFIT AT A MODERATE INCREASE IN ASSETS (+ ~10%) FASTER GROWTH? WE ARE INTERESTED IN ACQUISITION OPPORTUNITIES. Figures reflect strategic goals, their accomplishment is the Management Board’s ambition, rather than a business forecast. 3 TOMEK 35 YEARS OLD INCOME 4,000 PLN BEFORE TAX Tomek bought an Opel on credit in Getin Bank. He is happy because he obtained an instant loan and could immediately enjoy his new car. 4 TOMEK DID NOT HAVE ANY PROBLEMS IN FINDING HIS WAY TO GETIN BANK’S ATTRACTIVE OFFER. BUT WHAT IF HE WANTED TO OPEN A NEW BANK ACCOUNT? HERE, HE WOULD PROBABLY CONSIDER SOME OTHER BANK... 5 WHY? 6 WHY? BECAUSE HE IS SURE THAT HE WILL GET BETTER SERVICE THERE. AND HE DESERVES IT! AS LONG AS POLAND WAS WORKING ITS WAY UP, THE LOWEST PRICE WAS THE MAIN PURCHASE CRITERIA. NOW THAT SOCIETY IS GROWING RICH – THE DEMANDS ARE ALSO INCREASING. FORBES 09/2012 7 QUALITY 8 QUALITY CUSTOMER SERVICE QUALITY IN POLAND IS DEFINITELY GROWING. BIEDRONKA, LIDL, RAILWAY STATIONS, AIRPORTS, MOTORWAYS 9 CHALLENGE? 10 I HAVE A LOAN FROM I AM WITH GETIN BANK GETIN BANK BANK OFFERING PRODUCTS MY BANK 11 CUSTOMER SERVICE RECORD GROWTH EFFICIENCY REGULAR CLIENTS 8 RECORD YEARS IN A ROW NOW IT IS TIME TO REACH OUT FOR ...BY WINNING IN A COMPETITION WITH VERY GOOD FINANCIAL THE CUP AGAIN... THAT IS NEW TO THE BANK PERFORMANCE 12 THE MAIN GOALS FOR THE 2013–2015 STRATEGY 13 THE MAIN OBJECTIVES FOR THE 2013–2015 STRATEGY CHANGING THE BANK’S DNA CHANGING THE BANK’S DNA Boosting customer service quality Adequate and transparent products Innovative solutions in client relations 14 THE MAIN OBJECTIVES FOR THE 2013–2015 STRATEGY CHANGING THE BANK’S DNA EFFICIENCY OVER GROWTH EFFICIENCY OVER GROWTH Making use of the bank’s position – one million active checking accounts Changed loan mix Technological jump and reinforced brand 15 THE MAIN OBJECTIVES FOR THE 2013–2015 STRATEGY BANK GENERATING STA- CHANGING THE BANK’S DNA BLE, RECURRING AND PREDICTABLE RESULTS EFFICIENCY OVER GROWTH Less pressure on the cost of funds BANK GENERATING STABLE, Further decrease in the cost of risk RECURRING AND PREDICTABLE RESULTS Maintaining the risk appetite of new loan production 16 17 TRANSFORMATION OF THE ORGANISATION 18 TRANSFORMATION OF THE ORGANISATION MY BANK NEW TARGETS TO ACHIEVE GOOD CUSTOMER SERVICE EMPLOYEES ZERO TOLERANCE FOR UNETHICAL BEHAVIOUR THEY WILL NOT SELL ME SOMETHING THAT I DON’T REALLY NEED RESOURCEFULNESS CLIENTS AND TECHNOLOGY AND PROCEDURES INNOVATIVE BUT PRACTICAL STATE-OF-THE-ART SOLUTIONS ADEQUATE PRODUCTS NEW POST-SALE SERVICE COMPREHENSIBLE STRONG CRM COMPETENCES 19 TRANSFORMATION OF THE ORGANISATION 22 19 1000k 85% 90% 90% 76% 800k 340k 5 600k 10 3 460k n/a 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 FRIENDLY BANK IN AVERAGE RESULT OF ACTIVE BANK ACCOUNTS NEWSWEEK’S RANKING MYSTERY SHOPPER RESEARCH 20 WE ARE INTERESTED IN ACQUISITION OPPORTUNITIES 21 WE ARE INTERESTED IN ACQUISITION OPPORTUNITIES PURCHASE SALE NOBLE SECURITIES 2009 (former Dom Maklerski Polonia NET S.A.) GMAC BANK POLAND POSSIBILITY OF FURTHER ACQUISITIONS WE HAVE HIGH 2010 ALLIANZ BANK POLAND COMPETENCES LINK4 LIFE TUNŻ OPEN FINANCE CAPITAL INCREASE FOR 2011 BIG SCALE TRANSACTIONS TU EUROPA OPEN LIFE TUŻ (previously Link4 Life TUnŻ) DNB NORD IDEA BANK 2012 (organised part of the enterprise) (former GMAC Bank Poland) DEXIA KOMMUNALKREDIT BANK POLAND 22 AGENDA Getin Noble Bank’s strategy assumptions and objectives Bank’s starting position Bank’s strategy THE BANK WAS GROWING TWOFOLD FASTER THAN THE MARKET... 24 THE BANK WAS GROWING TWOFOLD FASTER THAN THE MARKET... ~21% AVERAGE ANNUAL GROWTH OF TOTAL ASSETS ~18% AVERAGE ANNUAL GROWTH OF EQUITY #1 IN THE AUTO LOANS MARKET #1 IN PRIVATE BANKING #1 IN FINANCIAL CONSULTANCY #2 BANK WITH MAJORITY POLISH CAPITAL ~37% / <40% COST/INCOME RATIO ~21% AVERAGE ANNUAL GROWTH OF THE BANK’S CLIENTS NUMBER 14 AMONG THE BIGGEST POLISH BRANDS ~XX% DATA FOR 2009-2012 (2009 BASED IN CONSOLIDATED PRO FORMA) 25 Source: ranking of Rzeczpospolita, 2012. ...WHICH ALLOWED THE BANK TO JOIN TOP POLISH BANKS IN 7 YEARS ONLY 26 ...WHICH ALLOWED THE BANK TO JOIN TOP POLISH BANKS IN 7 YEARS ONLY Interest income Loans and advances to clients 1 PKO BP 6 487 1 PKO BP 141 331 2 Bank Pekao 4 138 2 Bank Pekao 97 308 3 BRE Bank 2 173 3 BRE Bank 67 889 4 Getin Noble Bank 2 141 4 ING Bank 49 785 5 ING Bank 1 890 5 Getin Noble Bank 43 687 Total assets 6 BZ WBK 1 890 6 Bank Millenium 40 983 1 PKO BP 190 438 7 BAnk Millenium 1 524 7 BZ WBK 38 992 2 Bank Pekao 148 311 8 Kredyt Bank 1 171 8 Kredyt Bank 30 677 3 BRE Bank 95 045 9 Credit Agricole 1 075 9 Nordea Bank 27 478 10 Bank Handlowy 1 047 10 Bank BPH 26 482 4 ING Bank 70 260 5 BZ WBK 59 336 6 Getin Noble Bank 57 101 Fee and commission income Amounts due to customers 7 BGK 53 564 1 PKO BP 1 854 1 PKO BP 146 987 2 Bank Pekao 1 391 2 Bank Pekao 106 753 8 Bank Millenium 51 507 3 BRE Bank 773 3 BRE Bank 54 157 9 Kredyt Bank 43 495 4 ING Bank 645 4 ING Bank 52 190 10 Bank Handlowy 41 856 5 Getin Noble Bank 588 5 Getin Noble Bank 48 964 6 ING Bank 566 6 BZ WBK 46 210 7 Bank BPH 358 7 Bank Millenium 39 644 8 Bank Handlowy 358 8 BGK 33 765 9 Bank Millenium 330 9 Kredyt Bank 29 626 10 Alior Bank 301 10 Bank BGŻ 24 124 27 source: Rzeczpospolita, banks performance after Q2 2012 UNIQUE COMPETITIVE ADVANTAGE MIX 28 UNIQUE COMPETITIVE EDGE MIX REACHING OUT TO CLIENTS COST-EFFICIENCY STRONG SALE COMPETENCES STRICT COST DISCIPLINE ATTRACTIVE PRODUCTS AND COMPETITIVE PRICES LOW C/I RATIO EFFECTIVE MARKETING C/I 37% – NEARLY 1/4 LOWER THAN THE SECTOR’S AVERAGE 2.2 MILLION CLIENTS – NEARLY 50% GROWTH IN THE LAST TWO YEARS THE BANK HAS NEVER CROSSED 40% C/I INSTANT RESPONSE TO CHANGES SEVERAL DISTRIBUTION CHANNELS INSTANT RESPONSE IN CASE OF THE NEED OF BUSINESS MULTI-BRAND STRATEGY: GETIN, NOBLE, OPEN FINANCE... REORGANISATION REACHING OUT TO VARIOUS TARGET GROUPS PROVED IN 2009 AND 2011 OWN BRANCHES, FRANCHISE, LOAN CENTRES, STRONG CHANGE OF THE SALES STRUCTURE WITHIN ONLY INTERNET ONE YEAR WHILE MAINTAINING THE SALE VOLUME HIGHLY EFFICIENT TELESALES RESOURCEFULNESS INNOVATIVENESS 29 DYNAMIC GROWTH RAISES CHALLENGES 30 DYNAMIC GROWTH RAISES CHALLENGES NO EMPHASIS ON THE CLIENT RELATIONS IMAGE AND QUALITY NEED IMPROVEMENT DEPLETION OF PRODUCT NICHES CREDIT RISK HIGHER THAN THE MARKET’S AVERAGE DEFINITE CHANGES IN THE OPERATION MODEL REQUIRED 31 AGENDA Getin Noble Bank’s strategy assumptions and objectives Bank’s starting position Bank’s strategy REPLACING FAST GROWTH WITH HIGH EFFICIENCY 33 REPLACING FAST GROWTH WITH HIGH EFFICIENCY TECHNOLOGICAL AND ADEQUATE NEW CUSTOMER BANK’S EMPLOYEES OPERATIONAL JUMP PRODUCTS SERVICE AS BUSINESS PARTNERS 20 SECURE BALANCE PORTFOLIO ENHANCED IMAGE COMPLEX SHEET STRUCTURE QUALITY AND TRUST CUSTOMER SERVICE 34 TECHNOLOGICAL AND OPERATIONAL JUMP PROCESSES & TECHNOLOGY 35 TECHNOLOGICAL AND OPERATIONAL JUMP PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET STATE-OF-THE-ART SOLUTIONS IN ONE PLACE PRODUCTS CONTACT WE WANT TO JOIN SERVICES TOP3 CUSTOMER SERVICE IN TECHNOLOGY AIM NOT ONLY SALE, BUT ALSO EFFICIENT CRM AND POST-SALE SERVICE REINFORCING THE BANK’S OPERATIONS WOW EFFECT ONCE A YEAR CONSISTENTLY DEVELOPED SOLUTIONS AND FUNCTIONALITIES 36 TECHNOLOGICAL JUMP – WE HAVE ALREADY STARTED... PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET 5000 4345 5439 2342 000316 08/16 1608 ca rd ho ld er n am e 1 2 3 4 5 C 6 7 8 9 0 ok State-of-the-artNowoczesny tiling MobileAplikacja application mobilna PersonalPersonal Finance State-of-the-artNowoczesna Mobile banking kafelkinterfaceowy interfejs mobilna “Spare yourself” FinanceManager Manager kartdisplaya z displa cardyem Przelewy Przelewy Facebook money Przelewy Contactless NFC E-mail money transfers SMS money transfers mailem Fatransferscebook SMSem tetransactionslefonem NFC 37 TECHNOLOGICAL JUMP – WE HAVE ALREADY STARTED... PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET 1608 08 WWidgetsidgety Metalowa karta PersonalPersonal Net Ostatnia debetowa NetWorth Worth Wola kalendarz, kursy walut, Metal debit card Last will diary, F/X rates, kalkulator walutowy Bilans F/X calculator Balance € $ Transakcyjne Przelewy Foreignrachunki currency ekspresoPayByNetwe ekspresowe transactionswalutowe Mobile banking PayByLink Express transfers PayByNet / PayByLink accounts express payments 38 ADEQUATE PRODUCTS PRODUCT 39 ADEQUATE PRODUCTS PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET PLAIN AND COMPREHENSIBLE LANGUAGE HIGHEST STANDARDS IN THE CONSTRUCTION OF THE PRODUCT RANGE PRODUCTS TAILORED REDEFINED PRODUCT DEVELOPMENT PROCESS TO THE CLIENTS’ NEEDS NEW DOCUMENTATION STANDARDS CHECKING ACCOUNT AS THE CORE PRODUCT OFFERED BY THE BANK INNOVATIONS - YES, BUT ONLY WHEN THEY ARE SAFE FOR THE BANK’S NEW DISTRIBUTION STANDARDS REPUTATION AND SUITABLE FOR THE CLIENT CLIENT-ORIENTED CONSTRUCTION – PRODUCT TRANSPARENCY AND PRODUCT DOCUMENTATION TRANSPARENCY 40 NEW SALES SERVICE SALES NETWORK 41 QUALITY CHANGE IN THE SALES NETWORK PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET CUSTOMER SERVICE QUALITY AS THE CENTRAL ELEMENT NEW SELECTED STAFF OF THE MOTIVATION SYSTEM PERIODIC EVALUATION OF THE KNOWLEDGE OF THE OFFERED PRODUCTS, ADEQUATE INCENTIVE SCHEMES CUSTOMER SERVICE QUALITY, RELIABILITY OF THE INFORMATION PROVIDED CONSISTENT STAFF EVALUATION MYSTERY SHOPPER AND NPS AS REGULAR PROGRAMMES TAILORED TRAININGS TRAININGS – VERIFICATION OF KNOWLEDGE – CERTIFICATION HIGH QUALITY CUSTOMER SERVICE NEW BRANCHES, 1HY 2013=30, BY 2015 - THE ENTIRE NETWORK 42 THE NEW BRANCH PROCESSES & TECHNOLOGY PRODUCT SALES NETWORK EMPLOYEES CLIENT IMAGE RISK BALANCE SHEET CHANGE OF OPERATION MODEL IN 30 BRANCHES BY THE END OF H1 2013 = 30.