Vtb · RUS:VTBR
Vtb — Non-Deal Roadshow (June 2010)
28 slides from Vtb's roadshow presentation, Jun 25, 2010
Slide 1: New Strategy: Road to 15
New Strategy: “Road to 15” 21-25 June 2010 VTB Group Roadshow 0 © VTB 2010
Slide 2: Forward-looking statements disclaimer
Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC VTB ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous assumpt
Slide 3: Attractive Universal Banking Franchise
1 Attractive Universal Banking Franchise 1. 2 Cl 2. Clear B Business i St Strategy t 3 St 3. Strong Fi Financial i l Results R lt in i 1Q’10 2 © VTB 2010
Slide 4: Key investment highlights
Key investment highlights Gateway to Russian upturn Leading Russian banking franchise Russia is a resource-rich BRIC economy set to A unique universal platform and top player in key outperform through the next global cycle, driven by segments with strong cross-selling potential consumer and comm
Slide 5: A proxy for attractive Russian market
A proxy for attractive Russian market A Must have in a Regional Portfolio Second Largest Banking Group and a Growth Leader(3) Total Assets (USD mn, 2009) 6,000 3,000 250,000 09) 5,500 , 2,500 Nominal GDP (USD bn, 200 2,000 Romania Russia Brazil China Sberbank Kazakhstan 1,500 India Poland CEE(2) 1,0
Slide 6: A fully-fledged platform with widespread footprint
A fully-fledged platform with widespread footprint Niche Corporate Bank (2002) Leading Player in Russia Diversified Revenue Base Niche Russian Second Largest Universal Bank with Other(2) Oth corporate bank with RUB 3,362 bn / USD 114.5 bn in assets Corporate assets of USD 7.3 bn and presence acr
Slide 7: Clear Business Strategy
1 Attractive Universal Banking Franchise 1. 2 Cl 2. Clear B Business i St Strategy t 3. Strong Financial Results in 1Q’10 6 © VTB 2010
Slide 8: Clear strategic plan to enhance efficiency and recurring returns
Clear strategic plan to enhance efficiency and recurring returns Key Financial Targets Key Strategic Actions Loans/ 130% - osits Deposits 135% Scale now achieved allowing VTB to focus on profitable 13) Loans/Depo growth (2009-201 Growthh > 2.0x 20 > 2.3x Convert unique strategic positioning into
Slide 9: Corporate banking – a leading force with a renewed business approach
Corporate banking – a leading force with a renewed business approach Financial Highlights (1) Key Characteristics (RUB bn) 2008 2009 y-o-y 1Q’09 1Q’10 y-o-y Net interest Leader in Russian corporate market (# 2 / c. 13.0% 74.6 102.2 37% 24.0 27.1 13% income market share) Operating income 89.3 95.3
Slide 10: Corporate banking - key strategic priorities
Corporate banking - key strategic priorities Key Financial Targets (2013) (1) Strategic Initiatives 15% - 20% Establish Corporate-Investment Banking Business Shift focus of top-clients top clients coverage to provide comprehensive n.m. ROE service and cross-sales of IB products Separate client c
Slide 11: Retail banking – a growing franchise outperforming the market
Retail banking – a growing franchise outperforming the market Financial Highlights (1) Key Characteristics (RUB bn) 2008 2009 y-o-y 1Q‘09 1Q‘10 y-o-y Net Interest income 30.5 12.8 35% VTB24 – well recognised and trusted brand 43.6 43% 9.5 Net fee and commission income 3.7 6.8 84% 0.9 2.1 133% Le
Slide 12: Retail banking – key strategic priorities
Retail banking – key strategic priorities Key Financial Targets (2013) (1) Strategic Initiatives > 20% Segment-oriented Approach in Servicing Customers ROE 8% Become a primary bank for its customers in terms of client relationship quality and cross-sales 2009 2013E Drive returns in each client s
Slide 13: Investment banking – a dominant franchise in Russia and CIS
Investment banking – a dominant franchise in Russia and CIS Financial Highlights(2) Key Characteristics (RUB bn) 2008 2009 y-o-y 1Q‘09 1Q‘10 y-o-y Global-scale investment business under VTB Capital brand established in Operating income before provisions p (19.8) 30.7 n/a 7.5 12.3 64% April 2008: Pro
Slide 14: Investment banking – key strategic priorities
Investment banking – key strategic priorities Key Financial Targets (2013) (1) Strategic Initiatives > 30% Fully Integrated Platform ROE Expand business with existing clients beyond Russia, particularly in Start up CIS Develop higher margin business lines (asset management, private 2009 2013E eq
Slide 15: Build best in class financial management
Build best in class financial management Create in-house expertise to analyse financial markets and VTB Group positioning New approach to budgeting and planning based on dynamic proprietary model of the market profit pools and targeting of the most profitable segments Implementation of the new
Slide 16: A New Management Approach
A New Management Approach New Group Management System A More Effective Risk Management Transition from “Strategic Holding” to “Global Build an integrated Group-wide risk Bank” model management system Strengthen co-ordination of business and product Further develop Capital-at-Risk concept for
Slide 17: Strong Financial Results in 1Q'10
1 Attractive Universal Banking Franchise 1. 2 Cl 2. Clear B Business i St Strategy t 3. Strong Financial Results in 1Q’10 16 © VTB 2010
Slide 18: First quarter 2010 financial highlights
First quarter 2010 financial highlights Financial Highlights 1Q’2010 - Key Developments (RUB bn) 1Q’10 1Q’09 y-o-y Record quarterly net profit in VTB Group’s history – RUB 15.3 15 3 bn Net interest income before provisions 42.0 34.3 22.4% Net fee and commission income 5.1 4.3 18.6% Net result from
Slide 19: Double digit operating income growth and continuing delivery on cost control
Double digit operating income growth and continuing delivery on cost control Operating Income before Provisions Quarterly NIM (1) +28% 43.2 50.6 28.0 45.4 58.1 5.3% 5.2% (RUB bn) 0.6 8.4 15.9 12.4 0.6 6.3 5.1 2.6 4.3% 4.4% 4.3 5.4 5.0 4.1% 37.1 44.8 42.0 34.3 36.0 (11 3) (11.3) (3 2) (3.2) (14 7) (1
Slide 20: Asset quality deterioration slowing down
Asset quality deterioration slowing down, now moving towards pre-crisis cost of risk Quarterly P&L Provision Charge 7.1% 6.6% 4.3% 4.3% B bn) 2 5% 2.5% (RUB 49.2 47.4 29.8 28.3 15.5 1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 Provision charge / Average gross loan portfolio (in %, annualised) Asset Quality 31-Mar-
Slide 21: Sound funding, liquidity and capital position
Sound funding, liquidity and capital position Improving Leverage Structure BIS Group Capital 221% 22.2% 20.7% 163% 166% 147% 147% 17 3% 17.3% 16.2% (RUB bn) 14.8% 10.5% 680 686 606 195 185 238 368 485 501 1Q’09 2Q’09 3Q’09 4Q’09 1Q’10 31-Dec-08 31-Dec-09 31-Mar-10 Loan/deposit ratio Tier I Total Cap
Slide 22: Concluding remarks: A unique value proposition
Concluding remarks Gateway y to Russia Well placed to capture upturn in Russia and emerging markets Leading universal bank in Russia/CIS A unique value Clear business strategy focused on improving returns and profitability alongside prudent proposition p p risk management Sound financial
Slide 23: Appendix
A Appendix di 22 © VTB 2010
Slide 24: FY'2009 financial highlights
FY’2009 financial highlights (RUB bn) FY'09 FY'08 y-o-y Net interest income before provisions 152.2 113.6 34.0% Net fee and commission income 21.0 16.3 28.8% Net result from financial instruments (20.2) 2.4 n/a Operating income before provisions 167.2 150.5 11.1% Provision charge for loan impairment
Slide 25: International operations - contributing to greater efficiency of the Group
International operations - contributing to greater efficiency of the Group Key Targets (2013) Strategic Objectives and Initiatives Strengthen the Group’s position in each of the markets where it operates ROE in Each >15% Capitalise on unique advantages of being the only Russian Geography Banking
Slide 26: VTB Group public debt instruments
VTB Group public debt instruments(1) VTB Group Public Debt Instruments Outstanding VTB Group Debt Maturity Profile Maturity Amount 2,733 Borrower Instrument Date/Put or Call Coupon (USD, mn)(1) Option 2010 Subordinated Debt (call option) 1,820 1,943 VTB N-W 400 September 2010 6.2% 1,706 Series 3 RUB
Slide 27: Outperforming the market and key Russian peers
Outperforming the market and key Russian peers VTB share price performance 150 ange % Сha 113,10% 100 97,56% , 96,34% 82,12% VTB Bank Sberbank Vozrozhdenie Bank RTS Index 50 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 26 © VTB 2010
Slide 28: Investor Relations
Investor Relations Tel: +7 (495) 775-71-39 e mail: [email protected] e-mail: investorrelations@vtb ru 27 © VTB 2010