ProCredit : Präsentation

An impact-oriented group of commercial banks for MSMEs and private clients in South Eastern and Eastern Europe

Capital Markets Day, 21 March 2024

Today's agenda

13.00	ProCredit strategy and impact update followed by Q&A
	Strategic update | Hubert Spechtenhauser
	ProCredit impact | Dr Gian Marco Felice
	Positioning and growth | Eriola Bibolli
	Profitability | Christian Dagrosa
15.00	Break
15.30	Round table 'ProCredit on the ground'
	ProCredit Banks Bosnia & Herzegovina, Kosovo and Ukraine
16.30	Conclusion of event

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

1. Strategic update
   Hubert Spechtenhauser,
   Chairman of the management board
2. ProCredit impact
3. Positioning and growth
4. Profitability

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

Strategic update | what's new?

Broadened ProCredit footprint for enhanced positive impact

Positioning

• Broadened and sharpened impact definition
• Universal bank for MSME and PI clients
• Strengthened position as attractive bank for retail clients

Growth

• Attain critical size and strong SME market position in each country
• Substantially grow # of clients (50% in SME; 150% in PI)
• Loan portfolio > EUR 10bn

Profitability

• Improved balance sheet structure with more granularity of assets & liabilities
• Investments in staff, IT & marketing to enable operating leverage & scaling effects
• Enhance medium-term RoE to 13 - 14%

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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Raison d'être

• As a development-oriented commercial banking group, we strive to balance financial sustainability with comprehensive positive impact of our business '' on the economies, environment and societies of our countries of operation

Broader sense

of responsibility

responsibility towards the	Ethical
societies in which we operate	behaviour

Cultivate professionalism

and integrity among staff respect to all fellow human beings

social justice

protecting the	fostering democracy
environment	and free speech

Positive contribution to ESG transition in our countries

		Social impact	Environmental impact

KPIs	Jobs Creation	Green lending
Investment Loans
Net zero
	Gender Equity

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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ProCredit regional focus in context of EU accession

Intact and strong GDP growth outlook for SEE/EE of 3.8%

(p.a. in 2025-28 vs. 1.6% for Euro area)

Continued EU accession

(currently 8 countries status as candidates for EU membership)

>€100bn IFI investment into

SEE/EE

(EIB and EBRD, cumulative until 2022)

EU member states

EU candidates / EU applicants

ProCredit countries of operation in

SEE/EE

ProCredit is focused on an attractive and highly relevant region from all relevant perspectives - in terms of economic relevance and growth, political significance and impact potential

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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Before strategic update: focused positioning on SMEs

ProCredit target customers

(by client exposure)

Business focus

Business

Micro

Very Small:

Up to € 50k

Non-strategic

• 2% of loans
• Non-targeted,rather opportunistic approach

	SME
Small:	Medium:
€ 50 - 500k	> € 500k

Core segment

• 88% of loans
• 'Hausbank' concept serving all SMEs banking needs
• Strong growth track record with client group: €2bn loan growth in four years before Ukraine War (2017 - 2021)
• Client approach mainly through Business Client Advisors

Retail

Private individuals

Business owners,

high-/medium income

Highly restrictive

• <10% of loans, mainly mortgage
• Limited to business owners or middle- and high-income private individuals
• High-quality,restrictive offer

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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Strong group positioning for MSME and PI clients

ProCredit target customers

(by client exposure)

Strategic update

• additional growth areas

Business

Micro

Very Small:

Up to € 100k

STRONG GROWTH

• Strong expansion in client group
• Direct banking approach
• Strong impact rationale

	SME
Small:	Medium:
€ 100 - 750k	> € 750k

CONTINUE TO EXPAND MARKET SHARE

• Continue successful growth track as Hausbank for SME clients
• Focus growth on smaller business clients, converting into medium-sized companies
• Expand via branches in Tier 2 economic hubs and stronger syndication of SME services
  (POS, e-commerce, trade finance)

Retail

Private individuals

BROAD RETAIL APPROACH

• Broader, less restrictive retail approach
• Universal bank for PI customers
• Focus on social responsibility

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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Targeting ambitious client and balance sheet growth

'Strategic

update'

(Mar-24)

Strategic investments in growth catalysts

(people, marketing, IT, branches)

Client growth by ~1.5x in SME and ~2.5x in PI

Loan growth to >€10bn and B/S transformation

Leading bank for MSMEs in SEE/EE

Critical size and

strong MSME market

position in each

market

Attractive bank for private individuals

Increased group footprint, amplifying the group's positive impact & strengthened group resilience through a balanced approach and self-funded local bank growth

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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Medium-term RoE outlook

~ 13 - 14%

~ 12%

Increased outlook for group profitability

Scale and B/S transformation

• Margins to be strengthened from both sides of the balance sheet
• Expansion of client base across all segments to support non-interest income

Continued strong focus on cost efficiency

• Strategic investments in growth catalysts in 2024/25
• Underlying cost efficiency to remain high; target medium-termcost-income ratio at ~57%

Previous New

Moderate assumptions for PCB Ukraine

• Fully operational and ringfenced
• Moderate group contribution assumed from 2024 onwards

unchanged

upside potential

~1.5 ppt

on medium-term

group RoE

ProCredit Group | Capital markets day | Frankfurt am Main, 21 March 2024

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