TALLINN

RIGA
VILNIUS

WARSAW

PRAGUE
BRATISLAVA
BUDAPEST
LJUBLJANA ZAGREB
BELGRAD
BUCHAREST

SOFIA

Growth strategies in retail banking

Business breakfast
Bucharest, May 17th, 2006

1
Agenda

A. Development of CEE banking market 9h15

B. Successful retail business models 9h30

Breakfast break 10h00

C. Potential development of Romanian retail banking 10h20

2
 TALLINN
TALLINN
RIGA
RIGA
VILNIUS
VILNIUS

WARSAW
WARSAW

PRAGUE
PRAGUE
BRATISLAVA
BRATISLAVA
BUDAPEST
BUDAPEST
ZAGREB
LJUBLJANA
LJUBLJANA ZAGREB
BELGRAD
BELGRAD BUCHAREST
BUCHAREST
SOFIA
SOFIA

A. Development of CEE banking markets

3
The CEE banking market has experienced three
distinct phases
Foundation 1990-1995
Banks • Countries start building full
functioning banking sector
• Foreign investors start
entering the market
Customers • Market focus on corporate
banking
• Consumer banking market
still immature
Phase 1
Privatization 1995-2000
• Privatization of state
owned banks
• Foreign banks start buying
local banks
• Bankruptcy of some new
local banks
• Competition in corporate
banking increases
• Retail banking market
develops
Phase 2
Consolidation 2001-...
• Competition heats up, especially from
foreign players
• Markets are "underbanked" in
capitalization and product penetration
• International banks start to review
their CEE strategy
• Corporate banking market becomes
mature
• SME market segment starts fast
development
• Huge potential perceived in retail
lending market and investment fund
business
Phase 3
4
Bank privatization is almost complete in core CEE
and Bulgaria, with the end in sight in Romania 2006
% banking assets controlled by the state, 2005 Comments

• Poland: the state reduced its majority stake in

23,9%
PKO through a public offering in 2004; sold
21,0%
19,1%
stake in BGZ to Rabobank and EBRD
• Serbia: privatization took off in 2005, 4 small
banks privatized din 2004/ 2005, Vojvodjanska
(#4) up for sale
• Bulgaria: privatization complete in 2003
5,0% 4,5%
3,1%
2,0% 1,8% • Romania: CEC privatization ongoing, BCR
0,0% completed

SE PL SL RO CZ HR BG SK HU

Note: updated to reflect BCR’s privatization in 2005: :a stake of 62% of BCR was sold to ERSTE Bank;
Source: Central banks, ECB, Raiffeisen Research “CEE Banking sector report, 2005 5
Four groups of regionally-diversified CEE banks
can be distinguished

1 Local champions 2 Comprehensive

• OTP Overview foreign players regional players
• PKO BP • UniCredito • UniCredito/ BA CA
• BA CA • Raiffeisen
• Citibank
• Banca Intesa • Societe Generale
• ING
• ERSTE • ERSTE • Citibank
68% • Raiffeisen
• KBC • Volksbank
• SocGen
• BA CA
PL
• Banca Intesa
94%
3 Strong presence in • Bayern LB 4 Specialists and
selected markets CZ 97% • ERSTE opportunistic
SK • KBC
• KBC 80% players
• Erste Bank 36% HU • Allied Irish Bank
RO
• Banca Intesa
SV HR 91% 89% • ERSTE • BCP Millenium
• Raiffeisen • Fortis
• ING • KBC • UniCredito BG • SocGen
• SocGen 75% • Credit Lyonnais
• Banca Intesa • ABN
• BA CA • BA CA Amro • ABN Amro
= Asset share foreign banks,
as of end 2004 • BNP

Foreign banks with market share of 77 % in CEE countries!

6
A second wave of M&A activities is expected as
smaller foreign banks will review their CEE strategy
Total Assets
Countries in CEE, 2004
Banks 2005 [EUR m]
1)
9 15,600 • Foreign players of small size/ with limited
presence review their CEE banking strategy,
7 4,100
might consider exit
5 5,500 • Second wave M&A activities expected/
already happening (e.g. OTP’s appetite for
7 16,500
more CEE assets, divestments by Unicredit
1 6,500 in Croatia)
2) • Consolidation within foreign banking players
2 5,300 expected
1 5,100 • Opportunities for “late entrants” or further
consolidation of the banking sector
1 1,600

Notes: 1) Focus Poland/only small subsidiaries in other countries

2) 2 as of 2005 (HU and BG)
7
CEE markets are attractive because they are
underbanked compared to the EU
Banking assets
% GDP, 2005
350

EURO zone
300
75.913 EUR
250

200
SV
14.658 EUR
150
SK
100 CZ HR HU
BG Romania
PL
50
1.632 EUR

0 CAGR*
0 5 10 15 20 25 40
30 %
Notes: *2002-2005 CAGR for banking assets
The size of the bubble represents the banking assets/capita
Source: Roland Berger Strategy Consultants, BA-CA CEE Report, ECB, Eurostat, Central banks 8
Romania is catching up with CEE average on retail
lending, and the gap with EU fuels further growth
Retail lending as % of GDP Retail deposits as % of GDP

52.6% EU 12 54.4% EU 12

16.5 BG 37.5 38.2

15.9 HU 36.6 35.8 35.2 35.1
14.9 CZ
12.5 PL 29.5 30.1
12.4 13.1
14 27.8
10.9 26.1 27.8 BG
CZ 25.4
10 12.6 10.4 24.9 23.9
12 HU
25.9
8.8 24.7 PL
8.3 9.9 7.7 24.4 17.6 23.7
17.0 22.9
RO 23.2
5.9 6.5 19.9
6.2 13.4
4.5 5 10.6 10.5 10.2 10.9
4.6 10.1
3.7 3.8 RO
4.4 2.8
9.8
2.1 1.4
0.5 0.7

2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005

Note: For EU 12, retail lending and deposits include non profit institutions serving households
Source: ECB Monthly Bulletin, CEE Banking Sector Report 2005 by RZB Group, CEE Household Credit report by Unicredit 9
Low mortgage penetration will drive growth in retail
lending, probably more than consumer finance

Mortgage lending as % GDP [%] 2005 Consumer lending as % GDP [%] 2005
CAGR* CAGR*

EU 12 36.6 10% EU 12 16.0 4%

HU 9.5 66% BG 11.2 65%

CZ 8.6 50% PL 9.5 10%

PL 5.3 26% HU 7.4

32%

BG 4.6 124% CZ 6.2

33%
RO 2.0 98% RO 5.8
102%

Note: For EU 12, retail lending includes non profit institutions serving households
* CAGR 2000 - 2005
Source: Banking structures CEE (ECB), ECB Monthly Bulletin 10
Shrinking margins and high cost base will force
CEE banks to increase operational efficiency

Average interest spread Cost-Income Ratio, [%]

62.8% 61.0%
58.9%
56.7%
53.3%
50.5%
20.6% 46.3% 45-50%
20% EU best
17.2% practice
16.1%
14.7%
13.7%
12.7% 11.5%
11.1% 11.0%
9.1% 9.2% RO
10%
7.2% 6.4%
8.8%
7.3% BG
6.7% 6.6% 5.9% PL

0%
2000 2001 2002 2003 2004 2005 RO* PL SK BG HR HU CZ

Note: * Calculated for top 10 banks

Source: National Banks, WOOD Company CEE Banks-” Managing South East” 11
B. Successful retail banking business models

12
Staff, strategy, marketing & sales, distribution are
viewed as key success factors in CEE

Top success factors in CEE banking Comments

• Staff: management talent is scarce
Staff 77%
• Strategy: universal bank or niche bank
Strategy 58%

Marketing&Sales 58% • Marketing & Sales: transform branch

Distribution network 50% staff from administrators into sales-
38%
driven, customer oriented
Speed/Time to market

Pragmatism 31% • Distribution:

Customer base 25%
– Usage of alternative channels is high
Risk management 25%
in CEE
Front office processes 25%

Back office processes 19%

– Modern trends regarding branch
Cost management 19%
locations: malls, supermarkets
Products 12% – Invest in branch expansion to close
Internal organisation 8% gap with EU in terms of branch
IT 8% density

Source: ”Key factors for success of banks in CEE” by EFMA and zeb/ 13
CEE banking markets are selling markets, with a
focus on expansion and less on cost management
Key success factors

1 Strategy
> Positioning: Universal or
niche bank?

2 Distribution
> Alternative channels
> Network optimization and
expansion

3 Marketing & Sales

effectiveness
> Marketing/ Communication
> Cross Selling
> Sales empowerment

14
 STRATEGY

Most banks offer universal services, but specialist

and niche players have also proven successful…
Market Positioning– CEE examples
Focused player Universal
C D Comments

A Niche player, with focus on few

Broad
products and/or distribution
channels with competitive advantage

B Product specialist, with focus on

few products, but extensive,
Product
innovative distribution channels
portfolio
C Focused player, on distribution
channel/client segments with broad
product portfolio
D Universal bank, with a wide range
Narrow
of products and distribution channels

A B
Niche player Product Specialist
Narrow Broad
Distribution channel/segment
15
 STRATEGY

…which are sometimes interim stages on the

development path to become a universal retail bank
Examples of implementation strategies
Focused player Universal Implementation strategies

Broad
2003: Offer basic account, loan an deposit
through mini branches – high marketing
cost for branding
2004: Offer mortgage loan products of other
Product banks (3rd party provider)
portfolio 2005: Develop internet offer, credit cards

Step 1: Consumer finance through POS

Step 2: Usage of intermediaries
Step 3: Own sales units/branches, offer
Narrow
deposits, enter micro companies
Niche player Product Specialist
segment
Narrow Distribution channel/segment Broad

16
STRATEGY EXAMPLE

Lukas bank of Poland focuses on consumer finance

to build up a large customer base
Product
• Installment loans to individual customers, for
products and services purchase, cash and car
loans, mortgage loan with a free of charge analysis
of a loan application within short period
Distribution
• Branch location in the centers of large and smaller
towns, areas close to shopping centers and block
of flats settlements
• Co-operate with more than 31,000 shops, service
points and networks of big department stores
where customers can buy and finance the goods

Consumer finance
(Credit Agricole)
large customer base

• Target: mass clients, high number of clients over 50
years – low risk group as far as loan repayment is
concerned
• Plans to enter the segment of small enterprises
• Implementation of a new central IT system
Customer
• Extensive promotional campaigns and high
spending on marketing
• Substantial increase of revenue and profitability in
2004; ROE 73%, net profit EUR 68 m
Results

17
STRATEGY EXAMPLE
Provident Polska focuses on the low income
segment and delivers cash loans at home
Product
• Cash loan up to 1.250 EUR for max. 1 year, pure
mono-line
• Competitive interest rates, but very high
commissions; high effective interest rates (100-200%)
• Fast turnover, high margin, low interest rate risk –
cash loans are small and short term
Cash loans for the low
income segment
• Target: low income segment
• Value proposition: Easiness of getting the cash
loan – no bank account, no guarantors, relative fast
(in 48 hours), only guarantee is the confirmation
about salaries from last 3 months
Customer
Distribution
• Delivery and collection by representatives at
customers' home
• Close contact with client through representatives
• Representatives´ commission based on collection
• Increasing network of small purely sales offices
(223) in the whole country
• Alternative approach to credit standing evaluation,
base for the evaluation is the home of the client
• Simple, but effective risk management process
(bad loans: market standard)
• Bad loans sold to companies specialized in the
collection of receivables
Risk Management
18
STRATEGY EXAMPLE

Polish credit unions (SKOKs) are also successful in

tapping the lower income segment

• Non-profit associations focusing on simple products targeted to low

Strategy income customers (members) and relying on personal relationships in local community
• Favorable legal status for credit unions in Poland (no capital requirements, no income tax until
end 2006, etc.)

• Fast service through decentralized and simple processes

Implementation • Attractive pricing
• Internal stabilizing fund and guarantee system
• New services: investment funds, life insurance, mortgage products

• Fast growth and increased profitability in recent years

Results • One of the most successful concepts for providing services in savings and deposit segment
• A new competitor for traditional banks
• Assets of SKOK now account for over EUR 1 bn
• The number of members grew by 29% annually reaching 1,3 m members at the end of 2005
• The number of cash desks and branches at the end of 2005: > 1.500
19
STRATEGY EXAMPLE

MultiBank built up its client base as an internet

bank only – Outlets to support client acquisition
Product
• Very innovative solution in the mortgage loan
offer – mechanism of balancing the loan amount
with client savings within the Multiplan
• High product flexibility – no fees required for early
repayment and currency change
Distribution
• Multichannel access to the current account –
internet, branches (51), telephone banking, SMS,
WAP
• Attractive branch style and equipment give clients
the impression of high service quality and
„closeness” to client

Internet bank with

branches for client
acquisition
• Target: middle and affluent segment - clear • Cooperation with the main intermediaries is
separation of VIP clients (Aquarius Club) and small centrally coordinated – the bank cooperates mostly
enterprises with big intermediaries – Expander, Open Finance

Customer Promotion

20
STRATEGY EXAMPLE

GE Money exploits full potential of customer needs

via cross selling – Professional CRM program
GE Capital Multiservis Czech Republic
Basic Idea Realization by Multiservice

1 Drive customer
% of opening balance acquisition by "sales
100% finance loan" products
90% Card issued: 4th-6th month
80% 2 Drive high conversion
• Customer applies for 70% rate by automatic flip to
x-sell
sales finance 60% revolving credit
loans
account at POS to 50%
buy e.g. washing 40% 3 Drive revolving by strong
mashine 30%
4 revolvers cash card access
3
• Once acquired 20% functionality
2
customer gets 10%
4 Drive x-sell and
1
"converted" 0%
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 reactivation by targeted
• Cross selling offers/ products
Month on file
• Customer life cycle
program
21
Key success factors

1 Strategy
> Positioning: Universal or
niche bank?

2 Distribution
> Alternative channels
> Network optimization and
expansion

3 Marketing & Sales

effectiveness
> Marketing/ Communication
> Cross Selling
> Sales empowerment

22
DISTRIBUTION

Alternative distribution channels offer a faster

payback period with a lower investment
Products and distribution channels – Assessment CEE
Size POS 3rd party/ Mini offices/ Direct Standard
Seg- sales agents sales outlets access branches
ments/
products
Investment/
Insurance
Mortgage loans

Car loans

Consumer loans

Credit cards

Deposits

Investment Low Low Medium Large initial Large

level investments investments investments investments investments

Combinations are difficult Combinations are possible 23

DISTRIBUTION

Eurobank has a “Supermarket-Banking” branch

format – small sales outlets in high traffic locations

Example „mini-office“ Configuration „mini-office“

Information material • Needed space: 8 – 12 m2
• ATM (about 50% with deposit function)
• 2 work places with computer network access
• Place to provide information material
• Located in places with high visitor rate
(supermarkets, shopping centers …)
• High marketing support of EUR 15 m (2004)
resulted in >300,000 clients in 2 years

Investments per „mini-office“

• ATM with deposit function USD 15.000
• ATM without deposit function about USD 5.000
• Other equipment for the office about USD
ATM Sales person 15.000

24
DISTRIBUTION

10% of all mortgage loans in the Polish market were

granted by intermediation of Expander in 2004
Expander: Independent Financial
Intermediary Comments

• Expander offers a full range of sales services

Value of loans in for deposits, insurance and mortgage loans:
2004 USD 400 m in 2004 10% of all mortgage loans were
granted by Expander
Offer covers 90%
Average loan
mortgage • It started in 2000 as an internet portal as the
USD 40.000
loans in Poland only distribution channel, evolving into a
traditional branch network of 23 outlets in
2005
Cooperation with • Expander was bought by the General
20 120 financial Electric group in 2003
banks and 70 consultants
investment funds
21 branches • Mainly middle class living in big cities has
in 13 cities; used the services of Expander and its
4 years on the competitor “Open Finance”; people with
market average salary for Poland (about USD 600)
use their services
25
DISTRIBUTION

Bank BPH is using franchising to expand its branch

network in suburbs and small towns

• 100 outlets mainly in three Voievodships (out of 16)

• Bank intends to gain in this way a closer access to the clients in the areas where the
Outlets and bank does not have its own branch network
development • 350 new outlets by the end of 2005, total number of 600 outlets by 2006

Product • 90% of all retail products (savings account, term deposits, credit cards, (cash) loans)
offer
• Servicing small business beginning of 2006

Organization • Partner incurs all the investment costs connected to setting up the branch
• Partner employs staff and sets the level of salary
• Bank offers the training for the partners opening the outlets
• Break-even point reached as soon as after 3-6 months
• Partner receives part of the transaction fees generated by the branch
• Preferred locations: suburbs, large settlements of block of flats, shopping centers and
centers of small towns
• All operations are carried out on-line and booked directly into the system of the Bank

26
DISTRIBUTION

PKO BP, the large savings bank increases access

by the set up of agencies point of sale

• Two types of agencies: so called ‘old’ type agencies – located in production plants
and ‘new’ type agencies accessible to all customers: approx. 3,000 agencies
• Established mainly in small towns where PKO BP does not have their own branches
Outlets and and bigger cities in block of flat areas
development

Product • PKO BP plans to increase the number of products and services available trough
offer the agency (next to cash handling, opening accounts, loan applications, etc.)
• Agencies realize around 20% of all cash operations within the bank, 7% of saving
accounts, intermediation in loan sale – 20 000 loans in value of EUR 70 m p.a. (2004)
Organization • Agency functions in the name of and on behalf of the bank PKO BP
• A person interested in opening the agency has to be an entrepreneur (run a business)
• Decision concerning setting up the agency is taken by the director of the
regional retail department
• Agent must provide space for 1 cash teller, space for servicing client with adequate
safety measures (around 30 m2 with 2 employees), and has to rent a POS terminal
• The average investment in the outlet amounts to ca. PLN 10 000
• PKO BP provides the agent with software, bank’s logo (free of charge), basic training
• Agency cannot employ anyone without the bank’ s acceptance
27
Key success factors

1 Strategy
> Positioning: Universal or
niche bank?

2 Distribution
> Alternative channels
> Network optimization and
expansion

3 Marketing & Sales

effectiveness
> Marketing/ Communication
> Cross Selling
> Sales empowerment

28
MARKETING AND SALES EFFECTIVENESS

Lessons learned from Spanish banks: Marketing

expenditure is linked to sales success

Share of advertising and communication costs to all

non-personnel costs [in %]1) Comments
• Spanish banks have a high
Average CIR 45% 76% 78% >80%
retail segment share of marketing and
communication costs
100 100 100 100
• Effective increase in brand
Premises costs 17-23 20-31 25-33 15-20 recognition and sales
(Product campaigns, special
offers for target groups, etc.)
IT costs 16-26
19-29 10-15 8-12
• Increase in marketing and
... advertising costs in the last
... ... ... few years (e.g. Santander
+8% since 2002) at the same
Advertising/ 18-21 time decrease in other non-
Communication 1-4 5-8
6-10 personnel cost (e.g.
Spanish German Polish Romanian Santander -9% since 2002)
banks banks banks banks 2)

Notes: 1) Sample of selected Spanish and German big banks, 2004 2) Top 5 banks, 2004 29
MARKETING AND SALES EFFECTIVENESS

Cross-selling ratio is another important measure of

sales effectiveness

Cross-Selling Ratios of selected Spanish banks, 2004 [retail

segment]1) Comments
• Mortgage loans as anchor
6.3 products for cross selling
• Example: Santander
4.5 customers with mortgage
loans have six products in
3.92) average
3.7
3.3 3.42) • Bankinter value
proposition: "Most
Average of innovative, highest quality,
Romanian multi-channel convenience,
banks: < 2
personalized services"
based on anchor product
Banco Banesto Santander Banco BBVA Bankinter mortgage loans
Popular Sabadell
• Usage and development of
sophisticated CRM-Tools
Notes: 1) Analyzed products: current account, deposits, mortgage loans,
credit cards, consumer loans, investment funds, insurance etc.; 2) 2002
Source: Annual reports; Salomon Smith Barney 30
MARKETING AND SALES EFFECTIVENESS

Variable remuneration for sales employees is a

significant lever to support sales culture

Variable remuneration for sales employees –

EXAMPLES [%]1) Comments
• Variable remuneration share for sales
staff at Spanish banks is high (up to 45%)
5-15 10-20 – significant driver of sales culture
10-30
15-45 • Example Santander
– Collective targets
(for example market share in target
customer groups)
– Individual targets
(dependent on specific employee
profile)
Spanish Polish German Romanian – Customer satisfaction/-service
banks banks2) banks banks (based on customer surveys every
six months)
Variable Fixed

Notes: 1) Example of selected Spanish, Polish and German banks (retail segment)
2) Very few Polish banks have variable part up to 50% values only for full time employees
Source: Company's information 31
 TALLINN
TALLINN
RIGA
RIGA
VILNIUS
VILNIUS

WARSAW
WARSAW

PRAGUE
PRAGUE
BRATISLAVA
BRATISLAVA
BUDAPEST
BUDAPEST
ZAGREB
LJUBLJANA
LJUBLJANA ZAGREB
BELGRAD
BELGRAD BUCHAREST
BUCHAREST
SOFIA
SOFIA

C. Potential development of Romanian retail

banking

32
Growth in retail lending is expected to slow down,
driven more by mortgage than consumer lending
Outstanding retail loans [m RON] Comments

CAGR 117% 40% • Mortgage loans account for only

25% of retail loans in Romania,
9,6% while in the EU the percentage 80%
7,7%
30.336
4,6%
• Consumer finance boom fueled by
3,8%
8.216
strong demand for durables is
1,4%
Retail
21.719 expected to slow down due to
lending
% GDP restrictive National Bank measures,
5.246
market saturation on certain
11.314 segments, slow down in white goods
22.120 demand
7.528 3.334
16.474
1.851
Mortgage 590 2.090 7.980
5.677
Consumer 1.500

2002* 2003* 2004 2005 2006E

Note: * Estimated by Roland Berger Strategy Consultants based on maturity
Source: NBR 33
Banks have to find the right strategic positioning;
not everyone can be a universal bank!
Competitive banking environment
Romania Eurozone/ Global Retail Banking

Focus Universal Focus Universal

+ +
BRD
Bancpost
BCR
RZB
Unicredit+ Financial
BT advisors Universal banks/
HVB Tiriac
Alpha Bank HVB Tiriac financial
Product

Product
supermarket
ABN Self Auto
banking bank
CEC Brokers Private
Mortgage
OTP Raiffeisen Locuinte brokers Niche banks bank
Porsche Bank Unicredit Mortgage
Procredit banks
– Cost Saver/ Niche Product specialist
–
Niche Product Specialist
– Distribution
+ – +
Distribution

= Asset size = Asset size

34
Branch density is almost at par with mature CEE
banking markets

Branch density [# per 100.000 inhabitants]1) Comments

• Low branch density relative to
H 11 EU
PL 12
• Plans for 500+ branches
RO2) 15 announced for 2006 (+16%)

CZ 16

UK 19

FR 44
High potential to improve branch
IT 52 density and increase revenue
DE BUT investment and innovative
58
branch concepts required
ES 99

Notes: 1) Incl. cooperative banks 2) 2005

Source: National Central Banks; Bankscope 35
Alternative distribution channels offer a faster
payback period with a lower investment
Products and distribution channels – Assessment Romania
Size POS 3rd party/ Mini offices/ Direct Standard
Seg- sales agents sales outlets access branches
ments/
products
Investment/
Insurance
Mortgage loans

Car loans

Consumer loans

Credit cards

Deposits

Investment Low Low Medium Large initial Large

level investments investments investments investments investments

Combinations are difficult Combinations are possible High competition Low competition 36
Credit cards and mortgages will be increasingly
attractive for retail banks
Market segment attractiveness overview
Growth
potential
Comments
50%
Credit
ess Cards • Some product groups require
c tiven
ing Attra Mortgage lending more specialist know how such
40% Grow
as investment products
Consumer lending
Mutual Funds
30% • Credit cards expected to boom
Life insurance
due to co-branded cards, an
Non-life insurance
20%
increasingly attractive marketing
tool for retailers and banks;
Leasing Deposits smart cards and premium cards
10% are promising niche segments
Corporate lending

Market
concentration
0%
Low Medium High
Notes: Bubble size represents size of the business. Size of the cards business not defined.
Market concentration measured by HHI (Herfindhahl – Hirschmann) index from 0 to 1; 0 Represents low market concentration.
Source: "Piata FInanciara", Insurance Supervision Commission, ASLR 37
Levers to grow profitably – cheaper distribution,
product innovation, sales effectiveness
1. Choose the right strategic
positioning
2. Excellent client
segmentation/ Focus on
target groups
3. Product Innovation
4. Optimize distribution
5. Execution
• Positioning as a universal bank only if significant market share
can be achieved; otherwise pursue niches
• Development of new segments (e.g. low income segment,
agribusiness)
• Focus on SME client segments
• Using one product as an anchor, then cross sell
• New innovative products (e.g. savings+ mortgage loan)
• Use alternative distribution channels via third party agents,
mini offices
• Customize branch format to target clients and location
• Periodically reevaluate branch locations
• Increase of sales efficiency in integrated multi channel concept
• Strengthening of marketing/communication
• Increase of sales resources and cross selling leverage of sales channels
• Sales focus on performance (Incentives, activity controlling, etc.)
• Tight processes; shortening response time
• Risk management
38
D. Appendix
Roland Berger Strategy Consultants

39
 A truly global company

31 offices in 21 countries
Revenues of EUR 530 m

1,630 employees
75% of all projects with cross-border challenges

Amsterdam I Barcelona I Beijing I Berlin I Brussels I Bucharest I Budapest I Detroit I Düsseldorf I Frankfurt I
Hamburg I Kiev I Lisbon I London I Madrid I Milan I Moscow I Munich I New York I Paris I Prague I Riga I
Rome I São Paulo I Shanghai I Stuttgart I Tokyo I Vienna I Warsaw I Zagreb I Zurich
network
40
 Our clients' trust is the basis for our growth

ROLAND BERGER SALES GROWTH

1970-2004

EUR 530 m
New
clients 24%
76% Repeat
clients

+17.1% p.a.

1970 1975 1980 1985 1990 1995 2000 2004

41
 CEE as a region of dynamic growth for Roland
Berger Strategy Consultants

ROLAND BERGER STRATEGY CONSULTANTS

IN CEE
> One region
• One consultant pool
• Riga
(~100) Warsaw
• Moscow
•
• Local knowledge
combined with • Prague •Kiev
international experience Vienna
•
Ljubljana • •
• •Bratislava
Budapest
Bucharest
• 14 languages Zagreb
• •
Sarajevo
• Belgrade
• Intensive know-how •Sofia
exchange

42
 Our clients in CEE include the world's leading
financial institutions

Typical project topics:

• Strategy
• Strategic repositioning
• Organizational realignment
• Market entry strategies, international
diversification
• Post merger integration
• Sales and marketing strategies (including
SalesUp!)
• Credit risk management optimization

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Thank you!

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Roland Berger Strategy Consultants SRL

Blvd. Lascar Catargiu nr. 17
Sector 1
010602, Bucuresti
Romania

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