oŚ s.a. group - boŚ bank · finanse publiczne 59% eco-loans balance of eco-loans (bn pln)...

BOŚ S.A. Group

1Q 2015

2

Key financial data of BOŚ S.A. Group

2014 2013 Change Y/Y 2014 2013 Change Y/Y

Net interest income 286 649 276 141 3,8% 278 893 266 797 4,5%

Net commission & fee income 106 224 109 779 -3,2% 80 497 87 040 -7,5%

Net operating income 533 453 498 853 6,9% 461 323 425 924 8,3%

Gross profit 81 961 72 756 12,7% 73 083 66 324 10,2%

Net profit 65 906 64 360 2,4% 60 828 61 368 -0,9%

BOŚ S.A. Group thou PLN BOŚ S.A. thou PLN

12,39% 12,06% 12,75%14,03% 14,01%

9,80%10,30%

9,90% 10,46% 10,58%

31.12.2013 30.06.2014 30.09.2014 31.12.2014 31.03.2015

Group BOŚ CAR and Tier1

CAR Tier1

22,66%

23,91%

25,76% 26,52%27,72%

31.03.2014 30.06.2014 30.09.2014 31.12.2014 31.03.2015

Eco-loans in total loans balance

19 678 19 572

31.12.2014 31.03.2015

Group assets (m PLN)

12,5 12,614,2 14,1

88% 89%

0%

20%

40%

60%

80%

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

31.12.2014 31.03.2015

Group loans and deposits (m PLN)

Loans Deposits Loans/deposits

3

Key information about BOŚ S.A. Group

Dom Maklerski Banku Ochrony Środowiska S.A.

BOS Finance AB

BOŚ Eko Profit S.A

100% 100%

100%

99,52%

0,48%

BOŚ Invest Management Sp. z o.o.

MS Wind Sp. z o.o.

BOŚ Nieruchomości

Sp. z o.o.

BOŚ Nieruchomości Sp.

z o.o. SKA

99,998%

100%

0,002%

BOŚ Ekosystem sp. z o.o.

100%

Headquarters

17 Branches

78 Operating branches

BOŚ S.A. Group Structure

11 Corporate centers

Shareholders

56,62%

5,16%

38,22%

NFOŚiGW ING OFE and ING DFE Others

Number od branches

100%

Bank Ochrony Środowiska S.A.

95 95 95 95

2013 2014 1Q 2014 1Q 2015

4

118 119 119 119

2013 2014 1Q 2014 1Q 2015

224232

225 231

2013 2014 1Q 2014 1Q 2015

231239 232 238

2013 2014 1Q 2014 1Q 2015

219 226 222 226

2013 2014 1Q 2014 1Q 2015

+6 thou

+6 thou +4 thou

Customers of the Bank

Number of customers using electronic channels

Retail customers Number of accounts*

Number of customers

* Including savings accounts

Source: Bank, numbers in thousands

5

Marcroeconomic background 1/2

GDP, consumption and investment dynamics Inflation

Employment and wages dynamics Unemployment rate

-10

-5

0

5

10

15

20

25

30

-2

-1

0

1

2

3

4

5

6 GDP consumption investment (right axis)% YoY % YoY

-2

0

2

4

6

CPI core inflation

% YoY

-10

-5

0

5

10

-6

-4

-2

0

2

4

6

employment nominal wage (right axis)

real wage (right axis)

% YoY % YoY

-400

-300

-200

-100

0

100

200

300

400

8

9

10

11

12

13

14

15

annual change in number of unemployed unemployment rate

% K YoY

6

Marcroeconomic background 2/2

Deposits dynamics Loans dynamics

Interest rates PLN exchange rate

0

5

10

15

20

25

30

0

5

10

15

20

25

30

deposits deposits od individuals deposits of institutions

% YoY % YoY

-10

0

10

20

30

40

50

60

70

-10

0

10

20

30

40

50

loans consumer loans institutional loans mortgages

% YoY % YoY

1

3

5

7

NBP reference rate WIBOR 3M 5y bond yie ld

%

2,0

2,5

3,0

3,5

4,0

3,5

4,0

4,5

5,0

PLN/EUR PLN/USD (right axis) PLN/CHF (right axis)

PLN

7

Ratios of BOŚ S.A. Group

Net interest margin vs net interest income (m PLN) ROA vs total assets (bn PLN)

ROE vs capital (m PLN) C/I vs total income (m PLN)

276 287

75 59

1,6% 1,5%1,6%

1,2%

0,0%

1,0%

2,0%

3,0%

0

50

100

150

200

250

300

350

2013 2014 1Q 2014 1Q 2015

Net interest income Net interest margin (right axis)

18,4

19,7 19,3 19,6

0,4%0,3%

0,2%0,0%

0,0%

0,5%

1,0%

1,5%

17

18

19

20

2013 2014 1Q 2014 1Q 2015

Total assets ROA (right axis)

1 478

1 554

1 491

1 561

4,4%

4,3%

2,3%

-0,3%

-2%

0%

2%

4%

6%

1 420

1 440

1 460

1 480

1 500

1 520

1 540

1 560

1 580

2013 2014 1Q 2014 1Q 2015

Capital ROE (right axis)

1 042 1 036

227 236

73,4% 71,5%

80,2%

87,3%

50%

60%

70%

80%

90%

0

200

400

600

800

1 000

1 200

2013 2014 1Q 2014 1Q 2015

Total income C/I (right axis)

8

6673

28

17

2013 2014 1Q 2014 1Q 2015

Financial results of BOŚ S.A. Group for 1Q 2015

Net profit of the Bank (m PLN) Gross profit of the Bank (m PLN)

61 61

24

15

2013 2014 1Q 2014 1Q 2015

Main reasons for the decrease of the results in the 1Q:

Higher financing costs in connection with the second phase of the consolidation of public finance.

Significant rise of contributions to the Bank Guarantee Fund.

The negative net trading income of DM BOŚ following the decision of the Swiss National Bank to cease to maintain a fixed exchange rate of the Swiss Franc against Euro.

Additional provisions for loans of the retail segment.

thou PLN

Net interest income 59 345 74 721 -20,6%

Net commission & fee income 26 637 26 683 -0,2%

Dividend income 0 31 x

Net operating income -1 5 439 -100,0%

Result on investment securities 10 004 882 1034,2%

Net income on hedge accounting 868 117 641,9%

Foreign exchange result 11 636 8 223 41,5%

Operating profit 108 489 116 096 -6,6%

General administrative expenses -96 010 -91 493 4,9%

Net impairment loses -14 303 -10 816 32,2%

Gross profit -368 11 711 -103,1%

Net profit -1 134 8 629 -113,1%

Item Change Y/Y1Q 2015 1Q 2014

9

116 108

1Q 2014 1Q 2015

Result on banking activities of BOŚ S.A. Group Result on banking activities of BOŚ S.A. Group (m PLN)

Result on banking activities of BOŚ S.A. Group (m PLN) in 2012-2014

470 499 533

2012 2013 2014

-8 mln

64,4%

23,0%

4,7%8,0%

54,7%

24,6%

0,0%

20,7%

Net interest income Net fee and commission income Net trading income Others

10

Balance sheet of BOŚ S.A. Group m PLN

Loans and advances to customers 12 496 591 12 054 541 3,7%

Derivative financial instruments 5 698 555 4 692 862 21,4%

Cash and deposits with the Central Bank 394 168 892 566 -55,8%

Deposits with other banks, loans and

advances to other banks346 963 152 425 127,6%

Other assets 741 440 625 282 18,6%

Total assets 19 677 717 18 417 676 6,8%

Amounts due to customers 14 228 040 13 196 075 7,8%

Amounts due to other banks 354 086 443 228 -20,1%

Liabilities under banking securities

issued2 594 781 2 733 179 -5,1%

Other liabilities 947 234 567 084 67,0%

Total equity 1 553 576 1 478 110 5,1%

Total liabilities 19 677 717 18 417 676 6,8%

Credits / Deposits 87,8% 91,3% 3,5 p.p.

31.12.14Item 31.12.13 Change

72%

13%

2%5%

8%

LiabilitiesAmounts due to customers

Liabilities under banking securitiesissued

Amounts due to other banks

Other liabilities

Equity

65%

26%

9%

Assets

Loans and advances to

customers

Securities

Cash and other assets

Structure of the balance sheet:

16 867

17 684 17 626

17 999

18 418

19 33519 524

19 047

19 678 19 572Total assets (m PLN)

11

Liabilities per division

Subordinated debt (0.6 bn PLN)

Corporate and public finance (5.8 bn PLN)

BOŚ S.A. Group

Public finance (1.2 bn PLN)

Retail clients (6.9 bn PLN)

Loans from financial institutions and ecolological funds (1.4 bn PLN)

Funds intended for lending (0.2 bn PLN)

Corporate customers (4.6 bn PLN)

Amounts due to customers (14.1 bn PLN)

Debt securities issued (2.5 bn PLN)

Customers Division Category

Loans and advances from international financial institutions (1.2 bn PLN)

12

Gross loans and advances per division

including Division of which eco-loan portfolio Loan portfolio (capital as of 31.03.15)

Corporate and public finance

Medium and large enterprises

Small enterprises

Microenterprises and homeowner associations

Retail clients

BOŚ S.A. Group

Local governments

Municipal entreprises

Retail

2.4 bn PLN

3.2 bn PLN

0.2 bn PLN

4.7 bn PLN

2.2 bn PLN

0.3 bn PLN

3.4 bn PLN (42.6% of the corporate and public finance division’s loan portfolio)

0.15 bn PLN (3.1% of the retail division’s loan portfolio)

Public finance (2.5 bn PLN)

Retail clients (4.9 bn PLN)

Corporate clients (5.6 bn PLN)

Customer group

13

2,21,9

0,40,7

2013 2014 1Q 2014 1Q 2015

2,83,4

2,8

3,6

2013 2014 1Q 2014 1Q 2015

28%

4,2%

23,3%

72,5%

Segmentdetaliczny

Finanse publiczne

Segmentkorporacyjny

1,8%

97,1%

1,1% Segmentdetaliczny

Segmentkorporacyjny

Finanse publiczne

59%

Eco-loans

Balance of eco-loans (bn PLN)

Eco-loans sale (bn PLN)

Constant increase of eco-loans share in total loans.

Bank is focused on financing projects in the following areas: energy efficiency and renewable energy sources.

14

12,8

-0,3

12,5

Gross loans and advances Write-offs Net loans and advances

13,0

-0,3

12,6

Gross loans and advances Write-offs Net loans and advances

Lending portfolio quality

Ratio of non-performing loans by segments

bn PLN

50%49%

1%

51%49%

0%

37%

43%

20%

31.12.2014 31.03.2015

7,1%5,5%

14,5%

7,2%6,5% 6,0%

15,9%

7,8%

Corporate, public finance and

loans for other clients (includingbanks)

Mortgages Other retail Retail total

31.12.2014 31.03.2015

37,5%

41,8%

20,7%Retail

Corporate

Public finance

15

Brokerage – DM BOŚ

Source: Warsaw Stock Exchange

Futures - WSE Shares - NewConnect Shares - WSE

Forex

2,6% 2,6% 3,5%

2014 1Q 14 1Q 15

11,0 10,2 11,5

2014 1Q 14 1Q 15

70,7

64,3

72,1

2014 1Q 14 1Q 15Internet

80,9

74,5

82,3

2014 1Q 14 1Q 15Total

12,8% 10,6%

16,2%

2014 1Q 14 1Q 15

21,9%

20,0%

23,5%

2014 1Q 14 1Q 15

Market shares (sessions transactions)

Number of accounts at the end of 2014 (in thou)

Source: Warsaw Stock Exchange

16

Important events for BOŚ S.A. Group in 2014 Important events

Fitch Ratings agency upheld its ratings of the BOŚ S.A.

Balance of eco-loans as at 31 March 2015 amounted to PLN 3,6 bn PLN, which accounted for 27.7% of the total loan balance.

DM BOŚ was the offerer of the public offering of series D shares of Bloober Team SA.

New investment funds by TFI Union - further increase of the number of funds offered on the platform BossaFund.

Correlations BossaFX - implementing a new tool providing information on cross-depending on the currency market.

BossaToken – implementation of the mobile token on Android, iOS, Windows Phone and Java version on ordinary mobile phones. The application increases the safety of using the account.

Prizes and awards BOS, as one of three Polish companies among the 1000 European companies that spend the most

money on research and development. Ranking "2014 EU Industrial R&D Investment Scoreboard" was prepared by the European Commission.

BOŚ EKOsystem took third place in the category of Financial Innovation of the year in the sixth edition of the "Golden Banker" in 2014.

"Bull and Bear" award by Gazeta Giełdy Parkiet - BOSSAFX the best Forex platform of 2014; a nomination for the Best Brokerage House.

DM BOS awarded a statue of a bull by the Warsaw Stock Exchange for the most active market maker in the futures market in 2014.

FxCuffs Award 2015 in the category of Polish Forex Broker of the Year. Award the Financial Brand of the Year 2015 from „Gazeta finansowa” in the category of brokerage

houses. KDPW prize - DM BOS awarded for first among market participants implementation of netting of the

securities. TGE award for DM BOS for the largest number of customers acquired in the electricity market in 2014. The "Golden Turnover" award by the Warsaw Commodity Clearing House for the highest activity on the

new financial instruments. 2014 Financial Order Home & Market for BossaZagranica in the category of investment product.

http://www.bankier.pl/wiadomosc/Statuetki-Zloty-Bankier-2014-rozdane-mBank-najlepszym-bankiem-2014-roku-7245836.html

17

New projects and products

18

MasterCard Gold - Nr 1 credit card in Poland Nr 1 cr5edit card in Polsce according to ranking by TotalMoney.pl, 24.03.2015

From 26 January to 19 April the Bank organized a lottery called „Pay with a card – win ECOprizes”

Prizes: Toyota Auris Touring Sports Hybrid and 51 smartphones

Guaranteed 150 PLN for making card transactions for the total amount of min. 200 PLN

The credit limit without interest up to 56 days

One of the lowest interest rate of the market - only 8.99%

Discounts up to 55% in 2000 shops all over Poland within Buy & Smile discount programme

Free edition and usage of the card – in case of an active user

High credit limit - up to 60 000 PLN in the GOLD tariff

19

EKOkonto bez Kosztów product was implemented in April 2015

0 PLN for opening and maintaining an account

0 PLN for the cash withdrawal from all ATMs in Poland

0 PLN for domestic electronic transfers

0 PLN for establishing and implementing direct debits

0 PLN for access to electronic banking

0 PLN for the issuance and use of a debit card (with payment card in the amount of 300 PLN / month; otherwise fee is 5 PLN)

The interest rate on an additional savings account (for funds up to 10 thou PLN):

4% when at least 1 thou PLN hits the EKOkonto account every month

3,5% when less than 1 thou PLN hits the EKOkonto account every month

20

EKOloan for the GEOBIKE bike product was implemented in April 2015

According to GEOBIKE, riding 100 km on the electric bike costs 1 PLN

Using an electric vehicle promotes the protection of the environment by reducing fumes

On one battery charge the bike can travel 50 to 80 km and its loading is done with conventional 230V socket and lasts 120 minutes (80% capacity) or 4h to full capacity

The interest rate of EKOloan on the GEOBIKE bike: up to 36 months – fixed 8%, over 36 months – variable WIBOR 6M + 7.00 pp margin

The amount of installment for the Touring model is 90 PLN in the break-month repayment at 40 months (the cost of financing options bicycle at EKOpożyczką is 3 599.52 PLN, while there is an option to purchase for cash for 3 699 PLN)

Additionally, with timely repayments of interest will be reduced to 0% for the last 3 installments

21

Power consumption for own needs– 6 700 kWh per annum

The resale price of electricity : 0,65 PLN/kWh

The loan period– 35 years

Estimated value of the investment – PLN 282 thou net

The amount of grant under the MDM Programme – PLN 30.8 thou net

„ Free of charge house” programme – key points

Size of the house – ca. 100 m2

PV instalation – 7 kW

22

How much would they pay for a house? loan 870 PLN electricity + heating 0 PLN costs 110 PLN e.g. garbage collection, cold water

„Free of charge house” – case study of a family

How much they pay for an apartment? rental fee 800 PLN electricity 100 PLN rental costs 400 PLN incl. heating and hot water

Monthly cost of te apartment 1 300 zł The monthly cost of the house 980 zł

The house through eco-solutions is self-sufficient in terms of electricity, heating

and heating water

The „Free of charge house” fits the household budget of many Polish families.

Its costs are much lower than rental of a twice smaller apartment.

The Kowalski family from Słupsk rent a 60 m² apartment

23

„BOŚ EKOsystem” – hybrid heating system

Includes:

Boiler

Solar module

PV instalation

Heat pump

Solar collector

IT solutions supplier

Insurance package

Management and energy storage

PV instalation Heat pump

Benefits for clients: Savings in operating costs. Comfort and convenience in use. Health and safety. Innovation and full control.

HEAT PUMP HEATING

24

BOŚ EKOsystem in 5 steps:

Placing an order for BOŚ EKOsystem.

Recommendation of the best solution.

Formalities in one place.

Finding the funding.

Usage of „BOŚ EKOsystem”.

„BOŚ EKOsystem” – who can benefit?

People interested in replacing conventional boiler (eg coal), looking for savings in the cost of house heating.

Those interested in a comprehensive solution that will serve in the newly built house.

25

In February 2015 BOŚ signed a contract for Prosumer program and is the only bank taking part in it.

The aim of the program: to support distributed and renewable energy sources.

Prosumer is a line of a financial contribution (grant of 20 or 40%) of the purchase and installation of micro-installations of renewable electricity or electricity and heat, dedicated to individuals, communities and housing associations.

The program promotes new technologies, renewable energy and the attitude of prosumer (including building eco-awareness), and also affects the development of the market for equipment suppliers and installers and increasing the number of jobs in the sector.

Program Prosumer („Prosument”)

26

„EkoKredyt PV” – EcoCredit PV

The comprehensive offer of the Bank: Help from the ecology advisers the best financing of photovoltaic

installation Help in completing the formalities Preferential financing up to 100% of investment costs Insurance

Domestic photovoltaic installations - own electricity for your house: Real savings in the household budget Innovation and full control Comfort and convenience in use Ecology and energy security

27

„Loan with good energy”

Product for companies and local governments that

are interested in investing in installations using renewable energy sources.

A unique feature of the loan is the ability to adjust the amount of loan installments to the variable efficiency of renewable energy sources installations.

The loan period can be up to 20 years.

28

Appendices

29

Financial results of BOŚ S.A. thou PLN 31.03.2015 31.03.2014 Change

Interest income and similar income 165 676 184 029 -10,0%

Interest expense and similar charges -107 744 -111 599 -3,5%


Fee and commission income 21 837 23 374 -6,6%

Fee and commission expense -3 336 -3 566 -6,4%


Dividend income 8 500 10 400 -18,3%

Net trading income 3 969 6 234 -36,3%


Result on hedge accounting 868 117 641,9%


Other operating income 838 1 416 -40,8%

Other operating expenses -2 348 -3 982 -41,0%



Gross profit 17 437 27 517 -36,6%

Income tax charge -2 265 -3 933 -42,4%

Net profit 15 172 23 584 -35,7%

30

Financial results of BOŚ S.A. Group

thou PLN 31.03.2015 31.03.2014 Change

Interest income and similar income 165 929 184 335 -10,0%

Interest expense and similar charges -106 584 -109 614 -2,8%


Fee and commission income 34 946 34 624 0,9%

Fee and commission expense -8 309 -7 941 4,6%


Dividend income 0 31 x

Net trading income -1 5 439 -100,0%


Result on hedge accounting 868 117 641,9%


Other operating income 4 103 2 316 77,2%

Other operating expenses -2 647 -4 392 -39,7%



Gross profit -368 11 711 -103,1%

Income tax charge -766 -3 082 -75,1%

Net profit -1 134 8 629 -113,1%

31

Consolidated statement of financial position thou PLN 31.03.2015 31.12.2014 Change

Cash and deposits with the Central Bank 627 755 394 168 59,3%

Deposits with other banks, loans and advances to other

banks432 077 346 963 24,5%

Held-for-trading securities 55 841 10 096 453,1%

Derivative financial instruments 227 996 214 877 6,1%

Hedging derivatives 21 305 21 823 -2,4%

Loans and advances to customers 12 629 838 12 496 591 1,1%

Investment securities 5 106 994 5 698 555 -10,4%

Assets held for sale 50 - x

Intangible assets 158 377 164 898 -4,0%

Property, plant and equipment 126 852 132 023 -3,9%

Income tax assets 26 261 28 520 -7,9%

Other assets 158 686 169 203 -6,2%

Total assets 19 572 032 19 677 717 -0,5%

Amounts due to the Central Bank 26 38 -31,6%

Amounts due to other banks 310 013 354 086 -12,4%

Derivative financial instruments 292 975 194 090 50,9%

Hedging derivatives 46 367 41 504 11,7%

Deposits from customers 14 118 730 14 228 040 -0,8%

Liabilities under banking securities issued 2 514 407 2 594 781 -3,1%

Subordinated debt 564 877 566 435 -0,3%

Provisions 9 321 9 902 -5,9%

Income tax liabilities 701 7 652 -90,8%

Other liabilities 153 121 127 613 20,0%

Equity 1 561 494 1 553 576 0,5%

Total equity and liabilities 19 572 032 19 677 717 -0,5%

32

Disclaimer Neither this document nor any information contained herein may be distributed in the United States, Canada, Japan or Australia.

This document is not an offer for the sale of any securities in the United States. The securities of Bank Ochrony Środowiska S.A. (“Company”) have not been and

will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or any state regulations and may not be offered or sold in the United States or to US Persons (as defined in Regulation S issued under the Securities Act of 1933) absent registration or an exemption from registration under the Securities Act, or in a transaction not subject to the registration requirements of the Securities Act or any state regulations.

Neither this document nor any copy of it may be transferred to or transmitted in the United States, Canada, Japan or Australia Canada or distributed or redistributed in Japan, United States or Australia or to any resident thereof. This document does not constitute or form part of any offer to sell or issue, or an invitation to make an offer to purchase any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on or referred to in connection with, any contract.

This document is directed only at persons who are (a) outside the United Kingdom or (b) persons who have professional experience in matters relating to investments falling within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (c) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). The securities referred to in this document shall be made available only to the indicated persons and any invitation, offer or obligation to subscribe for, purchase or otherwise acquire such securities mill only be made available to or placed by the relevant persons. None other than a relevant person may rely on or refer to this document or any part hereof.

This document is merely a promotional instrument and should not, in any circumstances, be relied upon in making decisions as to investments in the Company’ securities.

This document is not to be distributed, directly or indirectly, in the United States of America or in other jurisdictions where public distribution of the information contained herein could be subject to restrictions or be prohibited by law. This document does not constitute an offer to sell or an invitation to subscribe for or acquire any securities.

This document may include forward-looking statements which means any statements using such words as “will,” “would,” “should,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “future,” “potential,” “believe,” “seek,” “plan,” “aim,” “objective,” “goal,” “strategy,” “target,” “continue” and similar expressions or their negatives.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, performance or growth, to differ materially from those expressed in, or suggested by, these forward-looking statements. The Company has no obligation to update publicly or revise publicly any forward-looking statements contained herein, whether as a result of new information, future events, changed circumstances or any other reason after the date of this document.

33

Contact for Investors: E-mail: [email protected] Web page: www.bosbank.pl BOŚ Bank S.A. Investor Relations Team 32, Żelazna Str. 00-832 Warszawa

oŚ s.a. group - boŚ bank · finanse publiczne 59% eco-loans balance of eco-loans (bn pln)...

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