Patria Bank SA · BVB:PBK

Patria Bank SA — Investor Presentation (November 2016)

24 slides from Patria Bank SA's investor presentation, Nov 10, 2016

  1. Slide 1: Investors meeting

    Investors meeting Bucharest, November 10th 2016

  2. Slide 2: Content

    CONTENT 1 About the Merger 2 Strategy of Patria Bank post-merger 3 Operational model 4 Merger implementation status 5 Appendix 1 - 2 Copyright © Patria Bank 2016 2

  3. Slide 3: 1. About the Merger

    & 4s PATRIA BANK’ CARPATICA soot PATRIA RANI 1. About the MERGER

  4. Slide 4: 1.1. Patria Bank – Group structure

    1.1. Patria Bank – Group structure  Patria Bank Group comprises Patria Bank (former Nextebank) as parent of Banca Comerciala Carpatica and Patria Credit IFN (non-banking financial services) GROUP STRUCTURE: PRE-MERGER GROUP STRUCTURE: POST-MERGER Emerging Europe Accession Fund UA Emerging Europe Ac

  5. Slide 5: 1.2. Patria Bank and Banca Carpatica – historical figures

    1.2. Patria Bank and Banca Carpatica – historical figures PATRIA BANK BANCA CARPATICA Fast and solid Turnaround of Patria Bank (a small bank) over the last 2.5 years (2014- Pre-merger Turnaround of BCC has just started in Q3 2016 through: 2016):  Headcount restructuring (-200 FTEs in 2016 compared

  6. Slide 6: 1.3. Merger valuations and share exchange

    1.3. Merger valuations and share exchange • Independent (EY) valuations of the two 1.12 x book 1.10 x book banks as of May 2016 (Reference rate) • Same valuation methods, unified approach BCC (RON m) PBK (RON m) 3.0566 share exchange ratio 194 238 262 174 RON 156 m increase of BCC’s capital through

  7. Slide 7: 1.4. Rationale for the Merger

    1.4. Rationale for the Merger  To increase Scale:  Network of 85 Branches (national coverage, including a few 2nd tier towns)  Reaching a Total Assets size of ~1 bln. Eur, to 1.2% market share  Deposits remained very sticky - despite 3 years of reputational issues around the former main sharehol

  8. Slide 8: 1.5. Better size of the Merged bank starting 2017

    1.5. Better size of the Merged bank starting 2017 Patria Bank Banca Comerciala Carpatica Merged Bank Forecast Audited Audited Forecast Audited Audited Forecast Plan consolidated '000 EUR Dec.2015 May-16 Dec.2016 Dec.2015 May-16 Dec.2016 Dec.2016 Dec.2017 Liquid assets 129,648 84,577 84,763 426,144 4

  9. Slide 9: 1.6. Better performance of the Merged bank starting 2017

    1.6. Better performance of the Merged bank starting 2017 Patria Bank BCC Consolidated ** Merged Bank Audited Forecast Audited Forecast Forecast Plan '000 EUR 2015 2016 2015 2016 2016 2017 Net interest income 10,909 12,225 10,776 8,926 18,658 25,975 Cost of risk, net (1,369) (3,396) (10,257) (5,162)

  10. Slide 10: 2. Post-merger Strategy

    & 4s PATRIA BANK’ CARPATICA soot PATRIA RANI 2. Post-merger STRATEGY

  11. Slide 11: 2.1. Patria Bank – Shareholding

    2.1. Patria Bank – Shareholding  Merged Patria Bank shall have as majority shareholder, owning 78%, Emerging Europe Accession Fund UA (“EEAF”), private equity fund owned whose main investors are IFI’s (EBRD, EIF, DEG, BSTDB)  EEAF is advised by Axxess Capital Partners, one of the most experienced

  12. Slide 12: 2.2. Patria Bank's Strategy

    2.2. Patria Bank’s Strategy KEY POINTS  Significant growth opportunities are available in the Romanian market to increase financial intermediation & consolidate the local banking players  Penetration of Financial Sector is lowest in EU (59% banking assets /GDP)  50% of the population does not hav

  13. Slide 13: 2.3. The strategic pillars for growth

    2.3. The 3 strategic pillars for growth Organic growth Acquisition Strong growth of loan opportunities portfolio, CAGR 2016-2019 Classic branch model (85) Retail, 49% • Distressed banks • Lines of business SME, 17% 3rd party distribution • Performing portfolios model Micro, 20% Loans portfolio, gros

  14. Slide 14: 2.4. Strategic objectives for 3 years post-merger

    2.4. Strategic objectives for 3 years post-merger  x2.3 times increase in productive assets (net loans), including through the 90m portfolio acquisition  +30% increase in Total Assets  x2,3 times increase in Own funds, considering a capital increase planned for Q3 of 2017  Increase by 2.9% of Ro

  15. Slide 15: 3. Operational model

    a) 4s PATRIA BANK’ CARPATICA soot PATRIA RANI 3. Operational model

  16. Slide 16: 3.1. Initiatives for operational improvement

    3.1. Initiatives for operational improvement Main initiatives Developments  Digital Office (embedding biometric signature and OCR):  Digital Office + o Assisted Banking Platform for Clients Enrollment & transactions / in Client Enrollment branches and 3rd party outlets (postal offices) o Online cu

  17. Slide 17: 3.2. Upgrades / investments

    3.2. Upgrades / investments Main initiatives Developments  Data center  95% of data center infrastructure has been upgraded during 2016, infrastructure including improvements on security layers and infrastructure  A new platform for security incidents management in progress of  SIEM implementati

  18. Slide 18: 4. Merger Status

    & 4s PATRIA BANK’ CARPATICA soot PATRIA RANI 4. Merger Status

  19. Slide 19: 4.1 Merger implementation status BCC – PBK

    4.1 Merger implementation status BCC – PBK FINALIZED  BCC – PBK Merger project has been delivered to Trade Registry in August 2016  October 5th, 2016 – BCC EGSM approved the merger  Withdrawing rights exercising period for BCC shareholders: October 5th – November 7th  Results of the withdrawing

  20. Slide 20: Thank you! Contact

    THANK YOU! CONTACT [email protected] Copyright © Patria Bank 2016 20

  21. Slide 21: 5. Appendix

    & 4s PATRIA BANK’ CARPATICA soot PATRIA RANI 5. Appendix

  22. Slide 22: Appendix 1: Key economic and banking indicators

    5 Appendix 1 Key economic and banking indicators*  Romania growth rates continue to be the highest in Europe  Financial intermediation still lags behind the region average  Foreign ownership in Romanian banking sector is among the highest in the region (>80%); opposite trend in the CE and SEE cou

  23. Slide 23: Appendix 2. Proforma BS and P&L for 2016-2019

    5 Appendix 2. Proforma BS and P&L for 2016-2019 Consolidated Merged Bank Forecast Plan Plan Plan ''000 EUR 2016* 2017 2018 2019 Liquid assets 477,523 279,767 276,700 361,427 Loans, net 275,614 434,154 539,561 645,575 Other Assets 95,199 96,062 95,073 88,710 Total Assets 848,335 809,983 911,335 1,095

  24. Slide 24: Disclaimer

    Disclaimer The contents of this Presentation will not be interpreted or considered as a financial or fiscal opinion and any potential investor may wish to use competent assistance from their legal and business advisers or from any other domain, for a relevant consultancy. This Presentation does not

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