markets
Post on 01-Nov-2014
946 Views
Preview:
DESCRIPTION
TRANSCRIPT
MARKETS & INVESTMENT BANKING DIVISION
S. Ermotti
Head of MIB Division
2
AGENDA
MIB - Our First Year Of Business Operation
CEE - Capturing And Developing The Opportunity
3
WITH A CLEAR STRUCTURE AND GOVERNANCE,…
Retail Division
Corporate Division
Private BankingAsset Management
Division
Poland's MarketsDivision
CEE Division
Global Banking Services Division
Markets &Investment Banking
activities of CEE banks
incl. activities of former
UniCredit Group
Markets & Investment Banking
Division
Markets & Investment Banking DivisionErmotti
Markets & Investment Banking DivisionErmotti
CMROBanks
CMROBanks
COOErmischCOO
Ermisch
Investment BankingSpezzotti, Weimer
Investment BankingSpezzotti, Weimer
MarketsHemetsberger
MarketsHemetsberger
Principal InvestmentsSeilheimer
Principal InvestmentsSeilheimer
4
Structured Derivatives
Leveraged Finance
Project Finance
Euro / CHF Debt
CEE Equities
M&A in CEE
Research
…STRONG GEOGRAPHICAL REACH AND PRODUCT CAPABILITIES,…
SingaporeHong kong
Tokyo
Moscow
London
MUNICHVIENNA
MILAN Istanbul
Warsaw
New York
Moscow
39 offices and ~ 3,300 employees
5
…AND A CLEAR DEFINED OPERATING MODEL.
MIB overlay structure fully implemented.
Target Operating Model and IT – implementation phase started.
Integration of international branches to reduce existing overlaps between legal entities – nearly finalized.
Integration of UBM into HVB successfully completed as of 1 April 2007.
Bundling of BA-CA’s MIB business activities in one Austrian subsidiary.
Strengthen MIB as an organization - brand, people, culture.
Capital management function harmonized to enhance overall capital efficiency.
Extension of MIB’s operating model into CEE.
eur mn
2/3 of cost savings already achieved by the end of 2007
2007f 2008 expected
cost savings
200
140
6
MIB IS FULLY ON TRACK TO ACHIEVE ITS 2008 TARGETS…
(1) MIB Division in % of 2006 UniCredit Group total
MIB contributes strongly to value creation 1
EVA
Capital
Revenues
23%
15%
14%
REVENUES
COST / INCOME RATIO
PRE-TAX PROFIT
RWA and ROE
eur mn
%
eur mn
eur mn ROE b/tin %
3,192>4,000
2006 2008t
1,602>2,000
2006 2008t
49.0% <50.0%
2006 2008t
63,058 ~65,000
42.9%50.0%
2006 2008t
7
…WITH A SOUND RISK PROFILE...
TOTAL EXPOSURE BY INVESTMENT CATEGORIES
Note: Data based on Total Exposure at default (BIS II logic) as of 31 March 07
Investment grade>72%
Defaulted<1%
Non-investmentgrade27%
Customer driven>80%
Prop. driven< 20%
In 2006, more than80% of revenues were customer driven:
Value at Risk (one-day | 99%)
(1) Based on standalone models (not harmonized internal models) and before diversification
20051 Integrated VAR2006 (eop)
Diversification benefit
2330
~ -6
eur mn
8
… AND A BALANCED BUSINESS PORTFOLIO.
BREAKDOWN OF 2006 OPERATING REVENUES
REVENUES BY BUSINESS LINES 2006(total return view)
Equities 20%
FICC 30%
Origination & Advisory 39%
Structured Credit 12%
Financing 61%
Structured Derivatives 38%
InvestmentBanking
32%
Markets68%
9
KEY STRATEGIC PRIORITIES (1)
MARKETS
FICC: Achieve above market growth by further enhancing our rates business and special focus on FX cash, plain vanilla and exotics to improve services to corporate and institutional clients.
Structured Derivatives: Maintain our strong and well diversified European market position in structured equity products and further develop rates.
Equities: Maintain our strong market position in CEE and further build-up our German and Italian business.
Structured Credit: Significantly expand our capabilities across all products and leverage on UniCredit’s balance sheet transformation program.
Markets68%
10
KEY STRATEGIC PRIORITIES (2)
Develop a top-tier Investment Banking position in core markets.
Financing:Complete footprint in Europe for acquisition and project financeExpand the private equity business
Origination & Advisory :Deepen our position in Corporate Finance with key clientsLead in cross-border M&A within core marketsEnhance our structuring and securitization capabilities
INVESTMENT BANKING
IB32%
11
AGENDA
MIB - Our First Year Of Business Operation
CEE - Capturing And Developing The Opportunity
12
Russia an Poland are more than 50% of 2006 revenues
eur mn
Russia~40%
CEE: CAPTURING AND DEVELOPING THE OPPORTUNITY
Poland~15%
(1) Rest of CEE including Slovakia, Bulgaria, Romania; Croatia, Slovenia, Latvia, Lithuania and Estonia - excluding Turkey and Ukraine with approx. EUR 3-4 bnof additional revenues
Source(s): BCG Database and internal analysis.
2006 CEE WHOLESALE REVENUE POOL
4,600
1,500
2,900
11,200
1,0001,200
Total CEE Russia Poland Czech Rep. Hungary Rest of CEE(1)
13
M&A In CEE By Number Of Deals – 109 DealsMergers & Acquisitions 2006
DeloitteUniCredit Group
E&Y Transaction Adv.Rothschild
Dundas UnluPricewaterhouse Coopers
JP MorganMerrill Lynch
KPMG Corp.Fin.Raiffeisen Investment AG
No. of deals201812101098886
M&A In CEE By Volume – € 57.4bnMergers & Acquisitions 2006
RothschildJP Morgan
E&Y Transaction Adv.Merrill Lynch
DeloitteUniCredit Group
Raiffeisen Investment AGPricewaterhouse Coopers
Dundas UnluKPMG Corp.Fin.
Source: MergerMarket; includes Turkey
EUR bn15.39.47.56.86.84.43.02.40.90.9
CEE Equities By Volume – € 13.0bnEquity Capital Markets 2006, Bookrunner CEE
Morgan Stanley Deutsche Bank
UniCredit GroupCredit Suisse
UBSMerrill Lynch
INGTroika Dialog
Bank Millennium SAInternetowyDom Maklerski SA
Source: Dealogic
EUR bn2.92.82.01.51.00.90.70.70.40.1
CEE Equities By Number Of Deals – 109 DealsEquity Capital Markets 2006, Bookrunner CEE
Bank Millennium SAUniCredit Group
Deutsche BankING
Troika DialogMorgan Stanley
InternetowyDom Maklerski SACredit SuisseMerrill Lynch
UBS
No. of deals231715
9888876
…WHERE MIB HAS ALREADY A LEADING MARKET POSITION.
14
rest of CEErest of CEERussiaRussiaPolandPoland
LEVERAGING MIB PRODUCT CAPABILITIES INTO THE CEE NETWORK
Exploit the demand of our clients for Investment Banking products
Implement MIB’s business model and overlay structureLeverage on the strong local market positions and MIB’s capabilitiesEnsure effective cross-selling through close cooperation and common goals
Ability to keep and attract key people
OBJECTIVES:
FIRST WAVE COUNTRIES ARE:
Implementation phase Starts in Q3 2007Implementation phase
15
WHOLESALE BANKING REVENUES POLAND
CAPTURE THE OPPORTUNITIES IN POLAND…
~1,500
>2,400CAGR10%
eur mn
Loans(3)
Financing(2)
Trading & SalesAdvisory(1)
(1) Includes M&A, ECM and DCM(2) Includes Factoring, Leasing, Structured finance and Working capital(3) Includes commercial and credit facilities, consumer credit, credit cards, mortgages and overdraft Source: BCG database and internal analysis
POLAND SHOWS A VERY POSITIVE FUTURE OUTLOOK
…with expected key areas of growth: M&A and Corporate Finance, ECM and DCM(origination), Trading & Sales as well as Loan business.
…which will clearly allow MIB to strengthen its market position as the pre-eminent player in Poland.
180
840
340130
2006 2011e
16
...WHERE WE START FROM A POSITION OF LEADERSHIP.
(1) Includes placements co-led with PKO BP, Deutsche Bank, Bank HandlowySource: WSE; Rzeczpospolita; Fitch; UniCredit; McKinsey
IPO/SPO
2006 data
Volume IPO+SPOsPLN bn
Number of transactionsUnits
1. UniCredit Group2. ING3. DM Millennium4. BDM PKO5. DM BZ WBK6. IDM SA7. DM BOŚ
4,5701,569
540430356331250
237588
137
Trading
2006 data
Turnover on the share marketPLN bn
Market share%
1. UniCredit Group2. DM BZ WBK3. DM BH4. ING Securities5. PKO BP6. DI BRE Banku7. KBCMARKET TOTAL
82.137.935.734.422.219.816.0
323.9
25.411.711.010.66.86.14.9
Commercial paper debt market
2006 data
Volume outstandingPLN bn
Market share%
1. UniCredit Group2. Bank Handlowy3. BRE Bank4. PKO BP5. ING BSMARKET TOTAL
3.22.11.71.51.5
12.8
24.816.113.111.811.7
Corporate bonds market
2006 data
Volume outstandingPLN bn
Market share%
1. UniCredit Group(1)
2. Pekao/PKO BP/DB3. BRE Bank4. PKO BP5. Bank Millennium/DB/West LBMARKET TOTAL
3.81.51.10.90.88.8
42.716.913.010.48.6
POLAND – 2006 LEAGUE TABLES
17
POLAND: FUTURE OPERATING MODEL IS BASED ON A DUAL PLATFORM
T O
D A
Y
UniCredit CA IB Bank BPH Pekao
"Original" UniCredit IB unitfocusing on Investment Banking business and institutional equities
Trading, sales and custody services, as well as DCM and financing for corporate clients
Trading, sales and custody services, as well as DCM and financing for corporate clients
InstitutionalBrokerage and investment banking services to institutional clients
RetailBrokerage services to retail clients
Regional investment banking (corporate finance, M&A, ECM)
Equities, including retail flow execution
MIB-related research
Sold
New UniCredit CA IB
CDM
FICC tradingCustodyInstitutional and corporate distributionStructured credit/DCMLoan syndicationFinancing
New Pekao MIB Division
MIB POLAND
18
RUSSIA WILL CONTINUE TO BE THE MOST ATTRACTIVE GROWTH MARKET
Corporate loans (outstanding volume)
Euro bonds and domestic bonds new issues
Global IPOs
Selective Examples For Russian Growth Potential (eur bn)
CAGR
2,600
~5,300
(1) Market correction assumed for one yearSource(s): BCG Global Revenue Pool Model; Economic Intelligence Unit; Expert interviews; BCG analysis
INVESTMENT BANKING REVENUES RUSSIA
Pure IB product-related view
CAGR~15%
eur mn
78115
146
221
2003 2004 2005 2006
11 1628
63
2003 2004 2005 2006
5
16
0 0.4
2003 2004 2005 2006
+42%p.a.
+79%p.a.
>100%p.a.
1,900
500200
~3,000
~1,800
~500
2006 2011e
Trading & Sales
Advisory 1Struct. Finance
Corporate clients still underleveraged.Significant upside with institutionals business.Growth of high margin products:
Increased M&A activity,need for equity injection to fund growth, increasing replacement of bank loans by bonds,increased infrastructure / real estate investments,continued LBO business, growing investments in equity derivatives,…
Russia is a key growth market and MIB should outgrow the market.
19
ATON: A RECOGNIZED AND ESTABLISHED MARKET LEADER IN RUSSIA
One of the largest Russian equities broker by traded volumes with 15 years proven track record.With some 180 professionals located in Moscow, London and New York, Consistently ranked within:
- Top 3 domestic investment banks- Top 5 investment banks worldwide for Russian equities sales, trading and research
Developing business with focus on high quality mid-cap and small-cap segment of the market, Expansion of derivatives, equity financing and fixed income business.
BREAKDOWN OF 2006 REVENUES
IB & Capital Markets 13%
70% Equities
FX 16%
20
Aton Int. Ltd
Closing expected for Q3 2007.
Cash EquitiesFI, ECMM&A
T O
D A
YRUSSIA: FUTURE OPERATING MODEL ACTING ON A DUAL PLATFORM -BASED ON A STRONG COMBINED MARKET POSITION 2006
IMB
FX, MM/Repo
Syndicated lending
Vanilla Credit
Cash Equities
selective FICC
ECM
M&A, Advisory
UniCredit ATON
FICC CustodyInstitutional and corporate distributionDCM, SecuritizationLoan syndicationFinancing
UniCredit Bank MIB Division
2006 MIB Revenue Rankingpro-forma
MIB RUSSIA
Source(s): McKinsey, pro-forma revenue base includes fees and capital markets, but does not include lending interest income and custody business.
Competitor IV
UniCredit Group
Competitor III
Competitor II
Competitor I
21
SUMMARY
Clear structure and governance, fully integrated in the division-based organizational model of UniCredit Group.Strong financial performance - more than “Sum-of-the-parts“.Balanced business portfolio with a sound risk profile.Focus on Group’s geographical reach and product capabilities in high profitable segments.Growth of revenues by leveraging existing strength and capitalize on the unrivaled reach in CEE.
Targeted revenues of € 4bn.Achieving a pre-tax profit of more than € 2bn.No substantial increase of our risk profile.Further strict cost management.
A LEADING EUROPEAN REGIONAL SPECIALIST
FULLY ON TRACK TO ACHIEVE OUR 2008 TARGETS
22
Breeze II
EUR 470,000,000Structured Bond
Transaction
Sole Bookrunner2006
Porsche
EUR 1,000,000,000Corporate Benchmark
BondJoint Lead Manager
& Bookrunner2006
Rosneftegaz
EUR 8,500,000,000IPO
Co-lead Manager2006
Avio
EUR 2,100,000,000Debt Facilities
Mandated Lead Arranger2006
MAN Roland
EUR 830,000,000ALF Transaction
Sole Mandated LeadArranger & Bookrunner
2006
Kion
EUR 3,300,000,000LBO
Mandated Lead Arranger2006
FL Selenia
EUR 685,000,000Senior and Subordinated
Loans
KKR/MLA & Bookrunner2006
ANNEX (1)SELECTED DEALS 2006/2007
Republic of Slovenia
EUR 1,000,000,0004.00%
Government Bond
Joint Bookrunner2007 – 2018
Hypo-Alpe-Adria-BankInternational
EUR 2,000,000,0004.375%
Senior Bonds
Joint Bookrunner2007 – 2017
Abengoa BioenergyFrance
EUR 158,200,000Project Finance
FacilitiesSole MLA, Bookrunner& Administrative Agent
2007
POLIS Immobilien
EUR 89,800,000IPO
Sole Bookrunner2007
Swisscom/Fastweb
EUR 3,700,000,000Tender Offer
Advisor2007
Yapi Kredi DPR Finance Company
2007-1
EUR 400,000,000Future Flow – Turkish
DPR SecuritisationJoint Arranger &Joint Bookrunner
2007
Immoeast
EUR 2,835,000,000Capital Increase
Joint Bookrunner & Joint Global Coordinator
2006
DaimlerChrysler
EUR 2,000,000,0004.375%
Senior Bonds
Joint Bookrunner2007 – 2010
ACM/ASP/Vesta
EUR 180,000,000Merger of ACM and
ASP into VestaAdvisor to the
companies2007
Oyak
EUR 2,400,000,000Acquisition Advisory
Advisor2006
Turkish Airlines
EUR 170,000,000SPO
Joint Bookrunner2006
Autostrade/Stalexport
EUR 54,600,000Capital Increase
Advisor to Autostrade2007
STALEXPORT
Alliance Boots
EUR 17.8 bnLead Financial
Advisor
MLA and Bookrunner2007
Endesa
EUR 43.7 bnMLA and Bookrunner
2007
23
"Best Investment Bank CEE"
Global Finance2007
"Best Equity Bank CEE"
Global Finance2007
"Best M&A Bank CEE"
Global Finance2007
"Best FX Bank in CEE"
Global Finance2007
# 1 Express Certificates
Focus Money2007
Best Conservative Strategy Certificate
Focus Money2007
ACPM Awarded Credit Portfolio
Manager of the Year
Risk Magazine2007
"Senior Debt Deal of the Year"
Euromoney/Ernst & Young
2006
"Global Renewable Energy Award"
Euromoney/Ernst & Young
2006
# 1 MLA Austrian Transactions
Dealogic2006
European Mining Deal of the Year
Project Finance2006
# 1 Structured Products Overall
Deutsches RiskMagazine
2006
# 1 Cross Asset Structures
Deutsches RiskMagazine
2006
# 1 Certificateof the Year
Certificate Awards2006
ANNEX (2)SELECTED AWARDS AND RANKINGS 2006/2007
"Best Project Finance House"
Finance New Europe2006
# 1 MLA Italian LBOs
Dealogic2006
# 1 Bookrunner and MLA German LBOs
Dealogic2006
# 1 All Jumbo Covered Bonds 2006
Global Finance2006
Best Custody House in Bulgaria
Global Custodian2007
Best Custody House in Poland
Global Custodian2007
Continental Financial Advisor of the Year
Acquisitions Monthly2007
top related