30
Brief presentation April, 2014
Brief presentation
April, 2014
Contents
2
1.Highlights 3-4 2.Ratings & Rankings 5 3.Shareholders 6 4.Supervisory Board 7 5.Management Board 8 6.Principles & Services 9 7.Strategy 10 8.Corporate Clients 11 9.Financials 12 10.Assets & Liabilities Structure 13 11.Corporate Business 14 12.International Business 15-17 13.Cooperation with State Export Credit Agencies of the CIS countries 18-19 14.Fund Raising Program 20 15.International Lending: Syndicated Term Loan Facility 21-24 16.Money Market and Capital Market Activity 25 17.Program of Comprehensive Services for FIs of Russia and CIS 26 18.International Banking Club 27 19.Contact persons 28
Highlights
3
Established in 1993. Key focus — financing of the Russian economy Among key partner banks of Russian Technologies State Corporation, Transneft, etc. In December 2011 Rostec State Corporation became the shareholder of NOVIKOMBANK Share of Rostec State Corporation in the authorized capital of NOVIKOMBANK will be
gradually increased from 17% to 51% as decided on the Rostec Supervisory Board meeting on 07.08.13
Core customer base — leading enterprises of heavy-machinery, automobile, high-technology industries
Among TOP 40 Russian banks by assets Assets — USD 5.2bln, Capital – USD 616mln as of January 1, 2014 (in acc. with RAS) Asset growth — 30% in 2013 Long term B2 rating by Moody‘s with a Stable Outlook Long term B rating by Fitch with a Positive outlook National scale A+ rating by Russian Rating Agency «Expert RA» with a Stable Outlook In July 2009 NOVIKOMBANK received a subordinated loan from State Corporation
VNESHECONOMBANK for the total amount of USD 15.5mln for the period till the year 2018 Current regional network of branches: Rostov-on-Don, Nizhny Novgorod, St. Petersburg, Togliatti.
Additional Offices: Zhukovski, Samara, Tula. Representative office in Kazan. IFRS accounts audited by Ernst and Young NOVIKOMBANK is the core bank for the Customs Union and the CIS
Rostec Corporation is an innovative industrial Corporation that participates in the implementation of state policy on innovative development of the Russian economy. It was created to promote the development, manufacture and export of high-tech industrial products.
Central region
Rostec comprises more than 660 enterprises from different industries:
• automotive manufacturing; • aircraft manufacturing; • engine manufacturing; • metallurgy; • construction; • optics; • composite and other modern structural materials; • medical equipment; • pharmaceuticals; • industrial biotechnologies; • radio electronics; • instrumentation technology; • information technologies, and telecommunications; • etc.
North-west region
South region
Privolzhsky region
Ural region Far East region Siberian region
Rostec State Corporation - Shareholder and Strategic Partner
4
Loans Assets
Ratings & Rankings
5
38th by assets in TOP 100 Russian Banks as of January 1, 2014 (by Interfax)
30th among Most Reliable Russian Banks as of October 1, 2013 (by Profile Magazine)
41st in TOP-200 of Most Profitable Russian Banks as of June 1, 2013 (by National Rating Agency)
NOVIKOMBANK entered the TOP-10 of most dynamically growing Russian banks in terms of asset growth according to THE BANKER (February 2013). Since 2010 NOVIKOMBANK’s assets have grown almost 3.5 times
Individual credit rating----------------------------B2 Short Term foreign / local-------------------------NP Financial strength (FSR) --------------------------E+ Outlook----------------------------------------Stable
International Rating by Moody’s Confirmed in 2013
Individual credit rating----------------------------A+ High creditworthiness level Outlook-----------------------------------------Stable
Rating Agency “Expert RA” Increase of credit rating in May 2012
NOVIKOMBANK’s Assets and Capital (USD mln, RAS)
Growth Indicators in 2013 (%)
18,0%15%
38%
28%
Banking system NOVIKOMBANK
2 020
3 100
4 3005 215
241 304 519 616
YE 2010 YE 2011 YE 2012 YE 2013
Assets
Capital
Individual credit rating-------------------------B Outlook---------------------------------- Positive Short-term foreign currency IDR-------------- B Long-term local currency IDR------------------B National Long-term Rating-------------BBB(rus)
International Rating by Fitch Published in December 2013
Shareholders
6
Mr. Ilya Gubin – President, Member of the Board of Directors In NOVIKOMBANK since 2001
Born in 1965 in Novokuibushevsk, Kuibushev region; In 1987 he graduated from Yaroslavl Higher Military Financial School. PhD in Economics; 2005—2009 - Chairman of the Board of Directors of NOVIKOMBANK; 2005—2008 - Vice-President for Finance and Economics, Executive Director for Finance and Economics of AVTOVAZ Group; 2001—2005 - President, Chairman of the Management Board of NOVIKOMBANK; 1994—2001 - held management positions in SBS-AGRO Bank (Stolichny Bank), International Company for Finance and Investments, ITERA Corporation In 2009 - was added to the management personnel pool established under the President’s patronage “The Best Russian Banker” in 2009.
State related: In 2012 subordinated loans in the total amount of USD
154mln were received from Rostec State Corporation In 2009 subordinated loan in the amount of USD 15.5mln
(with maturity date in 2018) was received from State Corporation VNESHECONOMBANK. Only 16 Russian banks received such loan.
NOVIKOMBANK is ultimately controlled by the President of the Bank Mr. Ilya Gubin currently controlling 82.39% of the Bank’s shares
Supervisory Board
7
Sergey Chemezov CEO, Rostec State Corporation
Ilya Gubin CEO, NOVIKOMBANK
Boris Aleshin General Director in Federal State Unitary Enterprise CENTRAL AEROHYDRODYNAMIC INSTITUTE named after professor N.E. Zhukovsky (TsAGI)
Vladimir Artyakov Deputy General Director, Rostec State Corporation
Igor Zavyalov Deputy General Director, Rostec State Corporation
Igor Makarov CEO, ITERA Oil and Gas Company Ltd
Petr Fradkov CEO, EXIAR
Julia Karpova Deputy Chairman, State Corporation Bank for Development and Foreign Economic Affairs (Vneshekonombank)
Management Board
8
Ilya Gubin CEO
Tatyana Ryskina Deputy CEO
Elena Shirinskaya Deputy CEO
Natalia Yudina Deputy CEO
Aleksandr Lapko Deputy CEO
NOVIKOMBANK today: Principles & Services
9
Provides a full range of high-quality reliable banking services to both corporate and private customers
Focus on tailor-made services, partnership relations maintenance, efficient risk-management
Lending Accounts & Payments Foreign exchange control Liquidity placements Trade finance &
Documentary operations Service Settlement Center
for Corporation
For corporate clients For private clients For financial
institutions
Banking Services
Private banking Lending Deposits & Bank cards Accounts & Payments Foreign exchange Investments
Lending FX operations Securities operations Banknote business Brokerage commodities Accounts & Payments Trade finance & Documentary operations
10
Close strategic partnership with Rostec State Corporation Creation of a large specialized bank for Russian Industry Creation of a client-targeted regional network of branches
by 2015 International business expansion, primarily in the CIS.
NOVIKOMBANK is the core bank for the Customs Union and the CIS.
Capital Trends of NOVIKOMBANK, USD, 000 (in accordance with calculation methods of the Central Bank of
the Russian Federation)
129520 167381
291874 308126111267
137035
227342308126
0
100000
200000
300000
400000
500000
600000
700000
1 JAN 2011 1 JAN 2012 1 JAN 2013 1 JAN 2014
Tier II Capital
Tier I Capital
240 787 304 416
519 216
616 252
Expected strengthening of the capital base in 2014
Expected Sources of Capital Growth in 2014
Sources Capital, USD mln
Conversion of subordinated loans of Rostec State Corporation into Capital, Tier 1 for the amount of USD 135 mln (1Q 2014)
135
Issue of subordinated loan for the amount of USD 100mln (1Q 2014) 100
Issue of subordinated loan for the amount of USD 60mln (2Q 2014) 60
Issue of subordinated Eurobond in the amount of USD 100mln (October, 2014) 100
Net income in 2014 for the amount of USD 77mln 77
Strategy: Highlights
Expected Capital as of YE2014 - USD 900mln
5200
6700
616,2 900
0
1000
2000
3000
4000
5000
6000
7000
8000
1 JAN 2014 1 JAN 2015 (plan)
Assets
Capital
Expected Dynamics of Assets and Capital in 2014-2015
Corporate Clients
11
JSC Zarubezhneft
Russian Technologies State Corporation
TYAZHPROMEXPORT
JSC Ruselectronics
Urals Optical and Mechanical Plant
Belorussian Steel Works
INTERLEASING
JSC “Transneft”
OJSC AVTOVAZ
Technopromexport
VSMPO – AVISMA Corporation
United Aircraft Corporation
Russian Helicopters
Financials in accordance with IFRS/RAS
12
USD'000 YE 2010 YE 2011 YE 2012 6m 2013 АSSETS Cash and cash equivalents 260,561.9 529,708 632,241 369,094 Deposits with the Central Bank of Russia - 217,441 65,865 428,122 Obligatory reserves with the Central Bank of Russia 12,153.8 24,993 37,455 41,214 Placements with banks and other financial institutions 182,047.3 285,818 432,404 396,771 Financial instruments at fair value through profit or loss 487,648.6 413,12 210,856 142,964 Loans to customers 871,404.5 1,483,765 2,407,172 2,535,552 Аvailable-for-sale assets: 198,022,7 62 209,50 271,757 430,480 Held-to-maturity investments 29,833.6 26,924.6 28,714.6 25,563 Investments in associated company 820.3 287.3 405 - Property and equipment 9,245.6 9,338 12,817 11,395 Other assets 6,054 8,322 6,75 15,590
Total assets 2,057,792 3,061,927 4,106,437 4,396,745
LIABILITIES Financial instruments at fair value through profit or loss 188.2 2,71 6,395 7,545 Deposits and balances from banks and other financial institutions 152,971.5 330,495.7 405,154 467,667
Amounts payable under repurchase agreements - 322,959 206,774 292,451 Current accounts and deposits from customers 1,344,400.8 1,790,568 2,549,595 2,399,557 Debt securities issued 237,942.1 277,695 337,834 641,793 Subordinated loans 91,699.8 128,239 294,973 288,351 Other borrowed funds 8,512.1 4,294 1,717 726 Other liabilities 15,935 10,144 6,528.8 12,963 Deferred tax liability 4,112 - 933.7 -
Total liabilities 1,855,761.4 2,867,105 3,809,905 4,111,053
EQUITY Share capital 104,943.4 99,34 118,717 110,238 Share premium 2,426.9 2,297.3 43,346.7 40,251 Revaluation reserve for property and equipment 4,888 4,538 6,341 5,888 Revaluation reserve for available-for-sale assets 3,442.7 (2,095.1) (469) (5,087) Gains on initial recognition of subordinated loans - - 11,657 10,821 Retained earnings 86,33 90,742 116,939 123,581 Total equity 202,031.1 194,822 296,532 285,692
Total liabilities and equity 2,057,792 3,061,927 4,106,437 4,396,745
Financials as of 01.01.2014 (RAS)
IFRS Financial Metrics as of 01.01.2013 ROA – 0.6% ROE – 8.6% NIM – 3.7% NPL – 0.7% Coverage Ratio (Provisions/NPLs) – 260% Profit – USD 20.8mln
Assets – USD 5.2bln Capital – USD 616.3mln Loan portfolio – USD 3bln Profit – USD 42.8mln CAR – 11.85%
Assets and Liabilities Structure (IFRS, as of 01.01.13)
13
Equity and Liabilities Structure Assets Structure
7% 7%
14%
48%
10%
8% 6%
CapitalSubordinated LoanAccounts and Deposits from Retail CustomersAccounts and Deposits from Corporate CustomersBanksDebt Securities IssuedOther
12261634
2500
3013
YE2010 YE2011 YE2012 YE2013
Corporate Business (as of 01.01.2014)
14
Loans to Corporate Customers (USD, mln) Loan Portfolio Structure by Industry
Loan Portfolio Structure
International Business
15
Cooperation with Financial Institutions
International Business
16
Ravis LLC
LC
0.3 mln USD
Commerzbank AG, Germany
Wt Specialty
Ingredients Sdn, Malaisia
Volgo -Diesel Mamins
LC with
post-financing
10mln USD
BNP Paribas, Commerzbank AG, VTB Bank Shanghai, Deutsche Bank AG,
BHF-Bank
Beneficiaries from France, China,
Germany
Interleasing Ltd., Russia
LC with ECA
8.2 mln EUR
Commerzbank AG
Keller HCW GmBH, Germany
OJSC«Avtovaz»
LC
1.3 mln USD
Samsung C&T Corporation,
Korea
VSP - Leasing
Loan Facility With ECA
9.1 mln USD
Oberbank,
Austria
Ingenia GmbH, Austria
Kominvest-AKMT
SBLC
0.34 mln USD
Unicredit Bank AG, Germany
Doppstadt Cable,
Germany
SKAT, Russia
LC with post-financing
2.53 mln EUR
Commerzbank AG, Deutsche Bank AG,
BHF-Bank
NACCO Materials, Scotland
Medicus-Centre Ltd, Kazakhstan
LC with PF
17.7mln RUB
NOVIKOMBANK
OOO Medikal-Onko,
Russia
OOO VLADIMIRSKI LPK
LC with
post-financing With Sace cover
0.6mln USD
UBI Banca
BONGIOANNI S.R.L.
Italy
Belorussian Oil Company
2 transactions
Trade Related Loan
39mln USD
TNK-BP, Russia Lukoil,Russia
Oil Company
Trade Related Loan
10.5mln USD
Surgutneftegas, Russia
Trade related Loans
105, 6 mln USD
Various companies In Ukraine
Bobruisk Plant of Tractor Parts
and Units
Pre-export financing
2 mln USD
Republic of Belarus
OJSC ‘BYELORUSSIAN STEEL WORKS’
LC
7,5 mln USD
Commerzbank AG
HOFFLAND ENVIRONMENTAL.
INC
17
JSC «TEHSTROI»
LC with ECA
2.2 mln USD
Commerzbank Germany
Siegfried Schumaher
GmbH, Germany
Elektrom LLC, Russia
LC with PF
5.45 mln USD
VTB Shanghai Commerzbank AG
Beneficiaries
from China
Jsc mozyr oil Refinery Belarus
LC
30 mln EUR
JSC TNK-BP, Russia
Motor Sich JSC, Ukraine
LC
10 mln USD
MRK-Engineering LTD Russia
CJSC Belorussian Oil Company
LC
8 mln EUR
RUE Production Association
“Belorusneft”, Belorus
Vinogradovskyi Raiagrotekhservis
LC
20 mln USD
ZAPADNY MOST LLC
JSC Belshina, Belarus
LC
40 mln USD
Thai Hua Rubber Pubilc Company
Limited Tailand
Vitebskiy Combinat
Khleboproduktov, Belarus
2 LC
0,54 mln EUR
Novikombank
TEKHNEX,
Russia
Tavricheskiy Bank
10 LC with
post-financing
1,5 mln USD
Commerzbank , Deutsche Bank,
BCP Beneficiaries from France, Germany, Switzerland, China
RUP "BPHO", Belarus
LC
0.4 mln USD
Novikombank
OJSC “Teksimport” Tajikistan
Aston Martin Moscow Ltd.,
Russia
LC with post-financing
1.3 mln EUR
Commerzbank,
Germany
Aston Martin Lagonda Ltd.,
UK
CHUP ASB Lizing, Belarus
LC with
post-financing
0,8 mln USD
BCP, Switzerland
Zeppelin Int. AG,
Switzerland
RUP "BPHO", Belarus
LC with
post-financing
5.8 mln USD
Novikombank, Moscow
OJSC “Teksimport”
Tajikistan
OOO”Dar-Dar”,
Tajikistan
LC
0.28 mln USD
Commerzbank Germany
China Meheco
Corporation China
International Business
NOVIKOMBANK’s cooperation with EXIAR and other State Export Credit Agencies of the CIS
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Financing of import of products and equipment from the CIS countries;
The instrument used is a letter of credit, confirmed/executed by NOVIKOMBANK in favour of products exporters of Belarus, Kazakhstan and Uzbekistan. The risks are insured by the export-import insurance agency from the exporter’s country;
Financing tenor – up to 2 years;
Financing tenor up to 5 years is possible when products are imported from Kazakhstan;
Ability of funds raising for the term up to 2 years above the lines approved for your fine Bank. Consideration of further deals refinancing on annual basis is possible. Minimal financing tenor is not limited.
UZBEKINVEST
Activities:
Insurance of the export credits against business (commercial) and political risks for Russian exporters
Insurance of Russian investments against political risks outside the Russian Federation
EXIAR: Russian Agency for Export Credit and Investment Insurance
NOVIKOMBANK is the LEADING BANK in terms of cooperation volumes with EXIAR in 2013. BELEXIMGARANT, KazExportGarant and UZBEKINVEST: CIS Export Insurance Agencies
Loan to importer AIR BUSINESS CONSULTING
Republic of Uzbekistan
USD 314 thnd
Commercial vehicles GAZ GROUP ENTECHMACH RPC LLC
EUR 1,6 mln USD 430 thnd
JSC “MAGADAN
MECHANICAL PLANT”
Loan to importer Orien-Leasing LLC
Republic of Tajikistan
Loan to importer JSC DNIPROAZOT
Ukraine
Loan to importer BMZ-Belorussian Steel Works
Loan to importer BMZ-Belorussian Steel Works
USD 62,7 mln RUB 74,5 mln
Republic of Belarus Republic of Belarus
NOVIKOMBANK’s cooperation with EXIAR and other State Export Credit Agencies of the CIS
19
Loan to importer LLC “Sangi Dare”
USD 390 thnd
Republic of Tajikistan
USD 2 mln Pre-export financing
Bobruisk Plant of Tractor Parts and Units
Republic of Belarus
EUR 3 mln
AVTOVAZ
Loan to importer BOGDAN-AUTO
Ukraine
RUB 2 bln Financing of reconstruction of
naval aviation with groun testing training facility
Moscow design bureau Compas
The project risks are covered by EXIAR
NOVIKOMBANK’s cooperation with EXIAR and other State Export Credit Agencies of the CIS
20
Fund Raising Program
21
Internal market
October 2012: RUB Bond Issue Borrower NOVIKOMBANK
Amount RUB 2bln Tenor 3 years Put option 1 year Coupon rate 10.25%
Arrangers Promsvyazbank VTB Capital Rosbank
RUB Bonds of NOVIKOMBANK are included in the Lombard List of the Central Bank of the Russian Federation
April 2013: RUB Bond Issue Borrower NOVIKOMBANK Amount RUB 3bln Tenor 3 years Put option 1 year Coupon rate 9.85%
Arrangers Gazprombank Sberbank KIB July 2011: RUB Bond Issue
Borrower NOVIKOMBANK
Amount RUB 3bln Tenor 3 years Put option 2 years Coupon rate 8.50%
Arrangers Promsvyazbank Troika Dialog
November 2010: Debut RUB Bond Issue Borrower NOVIKOMBANK
Amount RUB 2bln Tenor 3 years Put option 1.5 year Coupon rate 9.00%
Arrangers Promsvyazbank MDM Bank
NOVIKOMBANK - Leading Arranger of Syndicated Term Loan Facilities for the CIS Banks
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Provision of full range of syndicated loan arrangement services for the CIS banks;
Participation as Investor in loans (both club and public) granted to the Russian and the CIS banks.
On Investor’s side in 2013 -2014:
Since 2010, NOVIKOMBANK has arranged syndicated loans for the Russian and CIS banks for the total amount of more than USD 800mln.
In 2013 NOVIKOMBANK acted as MLA for 10 syndications and as MLA, Bookrunner and Agent for 5 syndications.
NOVIKOMBANK - Leading Arranger of Syndicated Term Loan Facilities for the CIS Banks
23
On Investor’s side in 2013:
24
Participation in syndications on secondary market:
On Investor’s side in 2012:
NOVIKOMBANK - Leading Arranger of Syndicated Term Loan Facilities for the CIS Banks
25
On Investor’s side in 2010-2011:
MLA in syndicated loans granted to Belarusbank, Belinvestbank and Paritet Bank, Republic of Belarus
As the Borrower: Syndicated loan in 2007
Borrower NOVIKOMBANK Amount USD 42mln Tenor 6 months Lender Barclays
NOVIKOMBANK - Leading Arranger of Syndicated Term Loan Facilities for the CIS Banks
Money Market and Capital Market Activity
26
Partners of NOVIKOMBANK
Securities portfolio structure (as of 01.01.14)
Deutsche Bank ICAP Tradition Barclays Merrill Lynch Commerzbank
Avangard Metallinvestbank Alfa-Bank MDM Bank TransCreditBank Vnesheconombank
Credit Suisse AG Unicreditbank Otkrytie Gazprombank Promsvyazbank Vneshprombank
RBI Citi Uralsib Nomos Bank Zenit Loko-bank
Proprietary securities portfolio (January 1, 2014) - USD 533mln
Fixed income — 99% incl. securities from Lombard list — 80%
Equities — 1%
17,95%
28,73%52,33%
0,99%State bonds
Corporate bonds
Eurobonds
Equities
Program of Comprehensive Services for Financial Institutions “Bank for Banks”
27
Creation of infrastructure for supporting clients’ interests in key regions; Creation of single settlements center for the banks from the CIS countries;
Belarus 22%
Azerbaijan 3%
Armenia 3%
Kazakhstan 11%
Latvia 6%Moldova 11%
Tadzhikistan 16%
Ukraine 18%
Kyrgyzstan 8%Uzbekistan 1% Lithuania 1%
Products for partner banks:
Settlements Money market products Banknote business Organization of export-import operations
financing through documentary instruments for clients of partner banks
Organization of syndicated loans Full range of services on capital markets of
Russia International Banking Club
Geography of interests on interbank market in the CIS and Baltic countries
NOVIKOMBANK opened TMT, USD and EUR accounts with the State Bank for Foreign Economic Affairs of Turkmenistan
NOVIKOMBANK is an active player on financial markets of Russia and CIS recognized on the interbank market: the volume of lines established in favour of NOVIKOMBANK by CIS banks exceeds USD 790mln. The number of partner banks exceeds 416 (as of 01.01.2014).
International Banking Club
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«POINTS OF GROWTH» New Project of International Banking Club initiated by NOVIKOMBANK Within the framework of the project International Banking Club in partnership with the founders of the Club as well as with such leading banking organizations as National Foreign Exchange Association, Russian Chamber of Commerce and Industry, International Moscow Financial and Banking school and etc. organizes conferences and seminars aimed at helping Russian banks successfully conduct business in current economic conditions. For more information please use the following link: www.interbankclub.com
Contact Information
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Elena Shirinskaya Deputy CEO, Ph.D. E-mail: [email protected] Tel.: +7 495 974-71-87 Mob.: +7 985 765-31-68 Stella Danielova Head of International Business Division E-mail: [email protected] Tel.: +7 495 974-71-87, ext. 692 Mob.: + 7 916 800-15-11 Elena Garaykina Head of International Trade and Structured Finance Department E-mail: [email protected] Tel.: +7 495 974-71-87 ext. 634 Mob.: +7 985 133-28-74
Contact Information JSCB NOVIKOMBANK 4/4 bld. 2, Yakimanskaya emb., Moscow, 119180, Russia Tel.:+7 (495) 974-71-87 Fax:+7 (499) 246-92-02 www.novikom.ru
