Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Shareholder Meeting (April 2021)
51 slides from Banca Transilvania SA's shareholder meeting presentation, Apr 28, 2021
Slide 1: BT General Meeting of Shareholders
BT General Meeting of Shareholders April 28, 2021
Slide 2: Ordinary General Meeting of Shareholders
<ZTreaes5cn -— [QTE 7 General Meeting of Shareholders — _Puciiiet General Meeting of Shareholders
Slide 3: Topics on the agenda
Cyr” General Meeting of Shareholders ‘T topics on the agenda
Slide 4: Election of the meeting secretaries and technical secretaries
Election of the meeting secretaries and of the technical secretaries, with the following proposals: • Meeting secretaries: Ioana Olănescu, Gabriel Goga • Technical secretaries: Flavia Vandor, Ioan Șumandea-Simionescu 4
Slide 5: Approval of annual statutory IFRS financial statements 2020
Approval of the annual statutory IFRS financial statements prepared for the financial year 2020, in accordance with the requirements of NBR Order No. 27/2010, as subsequently amended, along with the Report of the Board of Directors and the Independent Auditor’s Report 5
Slide 6: Bank's actions on social/medical and business levels
• The Bank decided to act on two different levels: the social/medical level and the business level: • As the market leader, we were expected to set the trends. We showed that we are a responsible and highly adaptive company. • At medical level, we contributed with financial resources and equipment:
Slide 7: Preserving market share; focus on online and alternative services
• Preserving the bank’s market share under the current circumstances; • Focus on online and alternative services; • Maintaining a balanced and client-oriented approach, given the current context; • Development of financial products meant to support the clients at the end of the crisis generated by t
Slide 8: BT first bank to announce support measures for borrowers
• BT was the first bank to announce support measures for its borrowers affected by the pandemic and launched the most consistent client support package; • More than 41,000 clients benefited from instalment deferral facilities and more than 400,000 cards were exempted from the minimum monthly payment
Slide 9: Ratio, proposal and achievement
Ratio Proposal Achievement RON 87.92 billion RON 103.35 billion +18% vs. Total assets +1% vs. 2019 2019 RON 1,371.04 billion Gross Profit RON 607.62 million +126% vs. budget 2020 RON 74.49 billion RON 88.30 billion Deposits from customers +0.2% vs. 2019 +19% vs. 2019 Loans and advances to customers
Slide 10: Net profit BT 2020: RON 1,197 million
• Net profit BT 2020: RON 1,197 million; • Resources from customers: RON 88.3 billion, +19% vs. 2019; • Loan balance: RON 40.4 billion, +5% vs. 2019; • New loans (2020): more than 145,000; • Companies were financed with more than RON 9.5 billion, and individuals with more than RON 5.3 billion; • BT’
Slide 11: Equity trend, RON billion
31.12.2020: RON 12.9 billion (EUR 2.7 billion) 31.12.2019: RON 12.3 billion (EUR 2.6 billion) 31.12.2018: RON 8.1 billion (EUR 1.7 billion) 31.12.2017: RON 9.2 billion (EUR 2 billion) 14 12.9 12.3 12 10 9.2 8.1 RON billion 8 6 4 2 0 31.12.2017 31.12.2018 31.12.2019 31.12.2020 12
Slide 12: Shareholder structure by number of persons and shares
No. of persons No. of shares Percentage ROMANIAN CAPITAL 33,689 4,053,073,146 70.64% Individuals 33,024 1,164,568,399 20.30% Companies 665 2,888,504,747 50.34% of which financial investment companies (SIF) 5 1,037,412,189 18.08% FOREIGN CAPITAL 996 1,684,626,563 29.36% Individuals 742 60,974,370 1.0
Slide 13: BT market share in total assets
3.4 18.4% million 17.7% 1.4 6.3% million 2010 2019 2020 2010 2020 • 18.4% BT’s market share in terms of total assets • BT’s market share almost tripled in the past 10 years 14
Slide 14: Active clients by segment
Active clients 31.12.2020 31.12.2019 Δ 2020/2019 Large Corporate Clients 1,456 1,483 -1.8% Medium Corporate Clients 9,074 8,985 1.0% SME Clients 18,538 18,593 -0.3% Micro-business Clients 329,740 298,152 10.6% Retail customers 3,038,548 2,931,894 3.6% TOTAL 3,397,356 3,259,107 4.2% *As per BT’s defi
Slide 15: Results by banking segment
● More than 3 million clients (+4% vs. 2019) Retail banking ● Market leader on the cards market: 4.39 million cards (1.3 digital cards) ● Loans: RON 24.0 billion; Deposits: RON 60.2 billion Large Corporate ● above 1,400 clients ● RON 3.3 billion loans granted (50% for new clients) ● RON 4.5 billion
Slide 16: Market shares: deposits, assets, loans
22% 21% 20% Deposits: ≈21% 19% 18% 17% Assets: 18.4% 16% 15% 14% 13% Loans: 15.4% 12% 2016 2017 2018 2019 2020 17
Slide 17: Per-employee and per-unit trends
Total assets / employee trend (RON thousand) Net profit / employee trend (thousand RON) +68% -18% 12,365 203 10,077 10,934 175 169 166 8,463 143 7,381 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Active clients / unit trend Active clients / employee trend +59% +26% 6,416 6,648 387 408 406 5,492
Slide 18: Employees
• 9,098 persons (December 31, 2019: 8,731); • Employees’ average age: 37 years; • Staff turnover: 6.82% from 15.64% (2020 vs 2019); • 997 employees of the BT Group with Covid-19 benefited from BT’s support (in 2020)
Slide 19: Social involvement projects and campaigns
• RON 24 million, contribution to more than 100 social involvement projects; • Campaigns and initiatives to support local entrepreneurs (Buy from a small business; Go shopping in your local stores); • The launching, together with the clients, of online shopping hubs (Right to your place; On the move
Slide 20: Sustainability as a change of paradigm
• Sustainability for BT has become a change of paradigm as we assume the fact that everything that we do shall be seen through an additional lens; • Regardless of the initiative and the project, we will constantly ask ourselves whether it is sustainable or not; • We will continue all our endeavors b
Slide 21: Separate Financial Statement 2020
Separate Financial Statement 2020
Slide 22: Separate income statement: achieved vs budget 2020
Achieved 2020 Budget 2020 Achieved 2019 Δ 2020/2019 Net banking income of which: 3,937 3,404 4,023 -2% • net interest income 2,580 2,399 2,685 -4% • net commission income 656 643 715 -8% Operating expenses -1,782 -1,841 -1,891 -6% Operating profit 2,155 1,563 2,132 1% Net provisions -784 -955 -245 2
Slide 23: Separate balance sheet: achieved vs budget 2020
Achieved 2020 Budget 2020 Achieved 2019 Δ 2020/2019 Loans and advances to customers 43,554 40,646 41,135 6% Provisions -3,190 -3.667 -2,533 26% Cash and cash equivalents 27,615 19,020 20,476 35% Portfolio of debt instruments, equity 32,401 29,309 25,986 25% instruments, and derivatives, net of provi
Slide 24: Consolidated Financial Statements 2020
Consolidated Financial Statements 2020 Banca Transilvania Financial Group
Slide 25: Consolidated income statement 2020
Achieved 2020 Achieved 2019 Δ 2020/2019 Net banking income of which: 4.538 4,607 -2% • net interest income 2,977 3,074 -3% • net commission income 776 823 -6% Operating expenses -2,049 -2,183 -6% Operating profit 2,488 2,424 3% Net provisions -866 -293 196% Gross Profit 1,622 2,132 -24% RON million
Slide 26: Consolidated balance sheet 2020
Achieved 2020 Achieved 2019 Δ 2020/2019 Loans and advances to customers 45,619 43,135 6% Provisions -3,498 -2,781 26% Cash and cash equivalents 29,356 22,358 31% Portfolio of debt instruments, equity instruments, and derivatives, net of 33,322 26,782 24% provisions Intangible assets 1,660 1,354 23%
Slide 27: Approval of the net profit distribution
Approval of the net profit distribution, in amount of RON 1,197,304,582, as follows: RON 197,780,334 for statutory reserves and other reserves, RON 425,754,277 for reserves from new profit 29
Slide 28: Profit distribution proposal 2020
Profit distribution proposal 2020 RON Gross profit 1,371,035,514 Current/deferred income tax -173,730,932 Net profit 1,197,304,582 5% distribution to the statutory reserve from the gross profit -68,551,776 Distribution to reserves from the reinvested profit -129,228,558 Net distributable profit 999,
Slide 29: Discharge of administration for the year 2020
Discharge of administration for the year 2020 31
Slide 30: Approval of 2021 budget and Investment Program
Approval of the income and expenditure budget and of the Investment Program for 2021 (Business Plan 2021). 32
Slide 31: 2021, the Year of Recovery
2021, the Year of Recovery
Slide 32: Proactive role in supporting companies, people and the economy
• We wish to be as proactive as possible, and to play a major role in the support of the companies, people and of the economy; • Our influence and position in the local economy is the highest in our history; • We want to contribute to the business and economy relaunching; • Cautious, rational, respo
Slide 33: Budget 2021
Budget 2021 Banca Transilvania
Slide 34: Budget 2021 key ratios and growth
• Cost / Income: 49.3% • Loans / Deposits: 47.9% • Total assets: +11.3% • Total gross loans: +7.9% • Total deposits from customers: +11.6% 36
Slide 35: Budget 2021: total assets
Total assets 11.3% 115.02 103.36 43.13 40.36 68.64 60.02 2.98 3.26 2020 Budget 2021 Loans, net Liquidity and securities Other assets 37
Slide 36: Budget 2021: liabilities, equity and ratios
Total liabilities and equity 11.3% 115.02 103.36 Deposits from customers 98.52 Equity 88.30 LT loans, banks and other Subordinated loans 9.52 10.39 1.66 3.87 2.18 3.93 2020 Budget 2021 Budget Ratios 2020 2021 Loan/deposits 49.3% 47.9% CAR* 22.24% 22.84% * The CAR has been determined based on the net
Slide 37: Budget 2021: gross profit, ROE and cost/income
1,516 1,371 261 -194 -212 Gross Profit Expenses Provisions Income Gross Profit 2020 trend trend trend 2021 Ratios 2020 Budget 2021 ROE 13.7% 12.9% Cosnt/Income 45.3% 49.3% 39
Slide 38: Investment program 2021
Buildings (agencies and branches) RON 64.60 million IT investments and cards RON 234.49 million Digital initiative RON 46.86 million Cash processing center RON 14.95 million Security RON 11.77 million Other RON 28.21 million Total investments (VAT included) RON 400.88 million 40
Slide 39: Establishing directors' remuneration for 2021
Establishing the directors’ remuneration for 2021, including the maximum limit of the additional remunerations (fixed and variable) awarded to the directors and managers 41
Slide 40: Approval of remuneration policy for the Management Body
Approval of the remuneration policy for the Bank’s Management Body. 42
Slide 41: Registration date and ex-date approval
Approval of the date of June 11, 2021 as registration date and June 10, 2021 as ex-date for the identification of the shareholders to be granted rights resulting from the OGMS decisions and to be impacted by the OGMS decisions. 43
Slide 42: Mandating the Board for enforcement of OGMS decisions
Mandating the Board of Directors and the individual members for the enforcement of the decisions adopted by the Ordinary General Meeting of Shareholders. 44
Slide 43: Extraordinary General Meeting of Shareholders
ircciielaa General Meeting of Shareholders
Slide 44: Election of the meeting secretaries and technical secretaries
Election of the meeting secretaries and of the technical secretaries, with the following proposals: • Meeting secretaries: Ioana Olănescu, Gabriel Goga • Technical secretaries: Flavia Vandor, Ioan Șumandea-Simionescu 46
Slide 45: Increase of share capital by RON 573,769,971
Increase of the share capital by RON 573,769,971 and by the issue of 573,769,971 new shares with a face value of RON 1/share, as well as the establishment of a price for the compensation of the share fractions resulting from the algorithm and the rounding of the results, in accordance with the appli
Slide 46: Approval of BT's share redemption
Approval of BT’s share redemption in accordance with the applicable legal provisions, under the following terms and conditions: up to 35,000,000 shares (0.61% of the total shares that build up the share capital) with a face value of RON 1/share at a minimum price equal to the market price on the BSE
Slide 47: Relocation of registered office to Cluj-Napoca
Relocation of Banca Transilvania’s registered office at the location in Cluj-Napoca, Calea Dorobanților nr. 30-36, Cluj county, Romania and the amendment of Article 4 of the Bank’s Articles of Association Relocation accordingly, as follows: Banca Transilvania’s registered office is in Cluj-Napoca, C
Slide 48: Registration date and ex-date for EGMS decisions
Approval of the date of September 10, 2021 as registration date and September 9, 2021 as ex-date for the identification of the shareholders to be granted other rights and to be impacted by the EGMS decisions, including without limitation the right to the free shares to be issued after the share capi
Slide 49: Payment date for free shares
Approval of the date of September 13, 2021 as payment date for the free shares to be issued after the share capital increase. 51
Slide 50: Mandating the Board for enforcement of EGMS decisions
Mandating the Board of Directors and the individual members for the enforcement of the decisions adopted by the Extraordinary General Meeting of Shareholders.
Slide 51: Investor relations contact
www. bancatransilvania.ro/investor-relations SF)
Banca Transilvania — Shareholder Meeting (April 2021) on 6ix