Laura Tanno
UBIWorld
2 2
INTERNATIONALIZATION: INTERNATIONALIZATION:
a way of surviving or a strategic optiona way of surviving or a strategic option??
A big A big opportunityopportunity forfor Italy, Italy, ItalianItalian companiescompanies
and UBIand UBI
3 3
GDP preview in the main high potential markets
Source: Comitato Leonardo, ICE, Prometeia 2013
GDP 2012
Estimated GDP 2020
Italian companies need to:
consolidate their presence in the
most significant and developped
countries, and
strenghten their presence in high
potential countries
GDP preview in the main high
potential markets
Internationalization: a great opportunity
4 4
Internationalization: a great opportunity
1.343.000
TOTAL ITALIAN
COMPANIES
(PRODUCTIVE &
SERVICES)
206.000
ITALIAN
COMPANIES
OPERATING IN
FOREIGN MARKETS
1.137.000
ITALIAN
COMPANIES NOT
OPERATING IN
FOREIGN MARKETS
70.000
ITALIAN
COMPANIES
INTERESTED IN
FOREIGN
MARKETS
1.067.000
ITALIAN
COMPANIES NOT
INTERESTED IN
FOREIGN
MARKETS
35.000
ITALIAN
COMPANIES
WHICH
REPRESENT
80% OF TOTAL
EXPORT
171.000
ITALIAN
COMPANIES
WHICH
REPRESENT
20% OF TOTAL
EXPORT
85%
15%
94% 6%
83% 17%
5 5
Nord East
121.929
(+2,4)%
Nord West
156.457 (+0,6%)
Center
64.121 (-0,7%)
South
25.971 (-4,1%)
Islands
16.540 (-15,0)
Source: ISTAT
2013/2012
milioni di euro % variazioni %
Piemonte 41.379 10,6 3,8
Liguria 6.420 1,6 -6,2
Lombardia 108.084 27,7 -0,1
Veneto 52.606 13,5 2,8
Friuli-Venezia Giulia 11.402 2,9 -0,6
Emilia-Romagna 50.788 13,0 2,6
Toscana 31.235 8,0 -3,6
Marche 11.613 3,0 12,3
Lazio 17.667 4,5 -1,6
Campania 9.588 2,5 1,8
Puglia 7.947 2,0 -10,4
Totale regioni più significative 348.730 89,4 -0,1
ITALIA 389.854 100,0 -0,1
Regioni più significative
per il Gruppo UBI Banca
2013
Internationalization: a great opportunity
Most Important italian
regions for UBI Group
6 6
Internationalization: a great opportunity
7 7
“ “
“ “ ClientsClients operatingoperating in in foreignforeign marketsmarkets
are are betterbetter thanthan thosethose concentratedconcentrated onlyonly
on the on the domesticdomestic market!”market!”
IS IT TRUE?IS IT TRUE?
8 8
Rating
UBI Corporate clients (updated at february 2014)
Rating
N° Clients % clients
Rating
Low Rating 2.370 44%
medium Rating 2.395 45%
High Rating 599 11%
Total 5.364
N° Clients % clients
Rating
Low Rating 5.203 32%
medium Rating 7.201 45%
High Rating 3.619 23%
Total 16.023
Clients operating in foreign markets Clients NOT operating in foreign markets
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Margini
Profitability
Profitability
Corporate clients (updated at february 2014)
Estimate
Average
gross
margin
2014
Eur 21.700
Of which
Euro 5.500 domestic
gross margin
Source: GSP Unity, dati aggiornati al 28.02.2014. Esclusi rating: ND, Not Rated, Incaglio, Sofferenza, Ristrutturati e PD180
Estimate
Average
gross
margin
2014
Eur 48.900
N° Clients Gross Margin
Rating
Low Rating 2.370 5.123
medium Rating 2.395 10.805
High Rating 599 9.554
Total 5.364 8154
Clients operating in foreign markets Clients NOT operating in foreign markets
10 10
WhatWhat do do italianitalian companiescompanies do in do in
orderorder toto go go internationalinternational? ?
VeryVery oftenoften the the processprocess theythey followfollow isis
notnot structuredstructured and and plannedplanned …………
11 11
Confindustria Verona and
Banca Popolare Vicenza
organise the third
“Internationalization event”
Made in Italy:
Agreement between
ConfCommercio and
Ministero dello Sviluppo
Economico
International events
Advisory firms
Seminars on
internationalization
and fiscal aspects
Chambers of
Commerce
Trade Association
The Made in Italy
in the world
12 12
supportingsupporting ItalianItalian companiescompanies in the in the
foreignforeign marketsmarkets …..…..
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Internationalization process: Italian companies and the Bank
Purposes
Increase the loyalty of
its clients
Increase the number
of clients operating in
foreign markets
Supporting the
internationalization
process of its clients
Increase volumes and
revenues of
International Area
Reduction of risks
with clients
Purposes
Expansion in new
Markets
Awareness of its own
strenghts and
weakeness
Conscious choice of
the target country and
the correct way to
approach
Awareness of actions,
timing, costs and risks
Main Problems
Lack of skills
Limited resources
(employers, strategic
internal functions)
Weak strategic plan
Costs deriving from
attempts and errors in
internasionalization
process
Difficulties in
obtaining access to
credit
Italian Companies The Bank
14 14
• Economic risks
• Financial risks
• Political risks
• Corporate risks
Main
Advantages
Main
Risks
• Increase of revenues and profits
• Diversification of risks
• Possibility of acceding to new ideas and experiences
• Increase of competitiveness in the domestic market
Internationalization process
Export Plan
• Background: company’s history, purposes and products
• Analysis of different foreign markets
• Business plan
• Evaluation of alternative paths
• Check of results
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UBIBancaUBIBanca wantswants toto bebe the right the right
partner partner forfor italianitalian companiescompanies whowho
approachapproach foreignforeign marketsmarkets
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GoToWorld is the service offered by UBIBanca for supporting italian companies
in the internationalization process
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De
sc
rip
tio
n
Ph
as
es
GOTOWORLD Assessment
GoToWorld is the service offered by UBIBanca for supporting medium and small entreprises in the
internazionalization process
After each phase, each firm can decide if continuing with the following phase of the GoToWorld
Assessment or stop the process.
Progetto
3
Operative plan for the
internationalization
process including
analysis of the costs,
resources, timing,
activities to be
implemented
Check Up
In – depth interview (it
lasts roughtly 1h30m)
with the entrepreneur
finalised to complete a
concise report in
which it is provided an
analysis of the
sustainability of the
internationalization
project
1
Prospettiva
2
Report containing an
analysis of the main
potential foreign
markets for the
company and a
proposal of a single
foreign market in
which the
internationalization
process can be
launched
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COMPANY PRODUCTS/SERVICES INTERNATIONALISATION
PROJECT
Check Up Progetto Prospettiva 3 2 1
GOTOWORLD Check-up
The GoToWorld Check Up confers a ratio (from 0% to 100%) for each of the above mentioned area.
Furthermore the report also confers to the client a Total Ratio
PREVIOUS
INTERNATIONAL
EXPERIENCES
Total Ratio
32,25%
• < 30%: the company needs to
implement its strategic plans in order
to increase its competitive capability.
• Ratio between 30% and 60%: the
company is sufficiently structured but
some improvement actions are
necessary in order to increase the
company’s competitiveness
• Ratio > 60%: the company is already
adeguately structured and ready for
the internationalisation plan
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Check Up 1
GOTOWORLD Prospettiva
Progetto Prospettiva 3 2
Analysis of wordwide importing countries for all the commercialized products of the
company
20 20
Check Up 1
GOTOWORLD Prospettiva
Progetto Prospettiva 3 2
Analysis for each product: % of wordwide import for each of the commercialized
products of the company
21 21
Check Up 1
GOTOWORLD Prospettiva
Progetto Prospettiva 3 2
Analysis of single product and single country: amount and % of import of each product
commercialized by the company in each of the main importing countries
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Check Up 1
GOTOWORLD Prospettiva
Progetto Prospettiva 3 2
List of products
List of the main
importing
countries for
each product
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Check Up 1
GOTOWORLD Progetto
Progetto Prospettiva 3 2
GANNT
CHART
GANNT Chart: very useful for the company in order to correctly plan each phase of the
process
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Check Up 1
GOTOWORLD Progetto
Progetto Prospettiva 3 2
DETAILED BUDGET
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WhichWhich are the are the mainmain
productsproducts and and servicesservices
providedprovided byby UBIBancaUBIBanca
toto itsits clientsclients??
26 26
Servizi
Transazionali
63 BANKING
SERVICES
26 NON
BANKING
SERVICES
Loans/advance
Trade Finance
Financial
Services
Bank Transfer/ checks
Cash Management
Exchange/ Derivative on exchange
Securities
Operational
Services
Protection from risks (country risk, counterparty risk,
exchange/rate risk
Training
Advisory
services
Professional Services: Legal / fiscal/corporate support , market
researches
Operations services : logistic, accounting, translations
Human Resources services : recruiting
“UBI World”: mapping of products and services
Advisory
services
27 27
CURRENT PRODUCTS OFFERED BY UBI CURRENT PRODUCTS OFFERED BY UBI
67%
UBI and its main competitors
% of coverage of the market
28 28
Offerta
(Gamma Prodotti
e servizi) Processo
Commerciale
UBIWorld
29 29
Pianificazione
Ingresso
Crescita
Internationalization
Phases Quality Geographical
coverage
1 2 3
“UBI World”: guidelines
30 30
Planning Planning Entrance Entrance Maintenance Maintenance Development Development Exit Exit
BANKING
SERVICES
Current Accounts (Euro or currency)
Documentary Credit
Advances, and export / import financings
Securities and exchanges
Collection and payments
Cover from exchange risks
International Factoring
Import financing (Euro/currency) and loans for internationalisation
Cash management /Cash Pooling
NON
BANKING
SERVICES
Market analysis
Research of commercial counterparties
Support on legal/ fiscal/ corporate issues
Accounting/ logistics / IT
Recruiting and education
Support to missions
Internationalisation
phases Quality Geographical coverage
1 2 3
“UBI World”: guidelines
31 31
UR Hong Kong
A. Croci
UR Shanghai
LuBo
UR Mumbai
R. Balsari
UR San Paolo
I. Guerrerio
UR Mosca
F. Pelazzo
BC Vienna
A. Stockert
“UBI World”: guidelines
Internationalisation
phases Quality Geographical coverage
1 2 3
32 32
MEDIO ORIENTE
SUD AMERICA
NORD AMERICA EUROPA
AFRICA
CIS
INDIA
AUSTRALIA
ESTREMO ORIENTE
7
18
7
4
18
1
29
33
53
Internationalisation
phases Quality Geographical coverage
1 2 3
“UBI World”: guidelines
33 33
UBI Banca has partnership with qualified
counterparties which provide high quality and certified
services
NON BANKING
SERVICES
BANKING
SERVICES
Investments in R&D in order to join high quality
standards for the market
Internationalisation
phases Quality Geographical coverage
1 2 3
“UBI World”: guidelines