Sales Productivity of the Branch and Relationship Managers

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Sales Productivity of the Branch and
Relationship Managers

• Vienna, February 2008

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INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators 3rd Quarter 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

3
INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators 3rd Quarter 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

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Overview of Millennium bcp 1985-2007 From
incorporation to leadership
2008 2010
On the path to the future
2005 2007
Consolidation and MA focus
2000 - 2005
with a single brand, focused on organic growth
and value creation
Leadership in Portugal, setting up the basis for
expansion in Poland and Greece
1995 - 2000
Consolidation in Poland and Greece and launching
greenfield operations in Romania and Angola and
attempt to grow by acquisitions
Consolidation to reach critical dimension
1985 - 1995
Organic growth to become relevant player
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Attractive markets offering robust opportunities
to focus on organic growth
Multidomestic bank A truly multi-domestic bank
with a supranational identity, aiming at
reinforcing leadership in Portugal and reaching a
significant position in our main markets
Romania
Greece
Angola
Portugal
Poland
Mozambique
Population (millions) GDP/capita (EUR
000) Financial system revenue growth ()
10 16 8
50 10 12
58 2 23

• Population 120 million
• Average annual real GDP growth rate 5 (vs 2.5
  for EU-15)
• Average annual growth in banking revenues 07 13
  (vs 9 for EU-15)
• 50 population using banking services vis-à-vis
  95 EU-15 average
• Moderate risk profile in converging economies

Our main markets will provide ample support to
expand operations in the main geographies
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A leading group focused on retail distribution in
Portugal, Poland and Greece
Poland Employees 5.829 Branches 400
Germany
England
Greece Employees 1.359 Branches 160
Switzerland
Portugal Employees 10.934 Branches 870
Romania
Turkey Employees 315 Braches 16
United States Employees 254 Branches 18
China
Macao
Angola
Venezuela
Mozambique Employees 1.511 Branches 75
South Africa
Brazil
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INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators November 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

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• Millennium bcp
• Business Segmentation Strategy in Portugal

INDIVIDUALS
COMPANIES
Private Banking Financial Assets above 400.000
Corporate Annual Turnover above 100 Million
Companies Segment Annual Turnover over 7,5
Million uros
Commercial Annual Turnover between 7,5 and 100
Million
Affluent Financial Assets between 50.000 and
400.000
Mass Market Financial Assets below 50.000
Small Business Annual Turnover below 7,5 Million
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• Millennium bcp SME Banking
• Small Business Retail Network Structure

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• Millennium bcp SME Banking
• Main Financial Indicators December 2007

(Eur Million)
10.562
Number of Clients
4,3
Number of Products per Client (November 2007)
31,6
of Clients with 2 products (November 2007)
16.605
Profit per Client
13.058
Total Credit
34,6
Share of Credit on Mbcp Customers (November 2007)
1,5
Past Due Loans / Total Credit
1.921 m.
Customers Funds
269
Total Employees
651 m
Profit per Employee
21,87
Return on Equity (November 2007)
19,5
Cost to Income
175,3 m.
Net Income (accumulated)
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• Millennium bcp SME Banking
• Global Offer

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INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators 3rd Quarter 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

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PROGRAM GTI

• Maximizing Sales Opportunities Creating Agenda

• Nowadays, banks face several challenges when
  dealing with the SME Market
• increase competition from other banks
• better customer knowledge of Banks products and
  services
• greater pressure for cost reduction
• superior importance of non-traditional channels,
  namely internet banking.
• With this new environment, banks need to adopt a
  more proactive strategy in the relation
  established with SMEs
• improve time dedicated to commercial activities
  instead of operative.
• increase the knowledge of the customers
  industry business.
• in order to previously identify customers
  needs
• and consequently present the right solution for
  the identified need.

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• Maximizing Sales Opportunities Creating Agenda
• PROGRAM GTI Global Overview

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• Maximizing Sales Opportunities Creating Agenda
• PROGRAM GTI Gain Time

1. Gain Time - freeing RMs from non-sales
activities to increase Client-facing time.
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• Maximizing Sales Opportunities Creating Agenda
• PROGRAM GTI Have a Plan / Meet The Client

• 1. Gain Time

• 3. Meet the Client

• 2. Have a plan

• through the reallocation of tasks (from RMs to
  assistants and from these to Middle office)

• systematic to each customer, using the
  available tools

• systematically minimum number of visits to
  customers, identification of key-contacts and
  cover plan

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1. Understanding the Clients Business

• Maximizing Sales Opportunities Creating Agenda

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To identify the potential opportunities, its
necessary to fully understand the Clients
business, in its several components.

• Maximizing Sales Opportunities Creating Agenda

Sources Annual Reports, Contacts with Customers,
Business Dossier, etc
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To identify opportunities 3 steps have to be
followed

• Maximizing Sales Opportunities Creating Agenda

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• Maximizing Sales Opportunities Creating Agenda
• Commercial Toolkit

• In order to best organize its commercial
  activity, the commercial area uses the Commercial
  Toolkit, enabling among others
• centralized access to all information regarding
  the customer
• direct coordination between work schedule and
  other tools
• creation and working on sales opportunities,
  according to specific logarithms
• listing future events (Ex maturity of a credit
  or an application) allowing for a pre-emptive
  commercial action with the customer
• access to Business Dossiers of the customers
• possibility of filing a Visits Report .

The Relationship Manager can establish an agenda,
thus making easier the organization of its day-to
day activity...
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• Maximizing Sales Opportunities Creating Agenda
• The Business Dossier

After selecting the customer, a report is
generated for the RM with several information
concerning its activity (Sales, ROE, Cash Flow,
etc).
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• Maximizing Sales Opportunities Creating Agenda
• The Business Dossier

as well as other indicators.
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• Maximizing Sales Opportunities Creating Agenda
• Sales Opportunities

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• Maximizing Sales Opportunities Creating Agenda
• Future Events

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INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators 3rd Quarter 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

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• Evaluating Impact of Commercial Actions

2. Identify and evaluate potential opportunities
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After identifying the potential opportunities,
its necessary to record them on the Financial
Needs Report..

• Evaluating Impact of Commercial Actions

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The evaluation of the potential associated with
each identified opportunity, is made throw the
use of the Value Added Simulator.

• Evaluating Impact of Commercial Actions

• This Simulator allows an analysis, per customer,
  of the potential added value that a specific
  operation might bring
• Simulations can be made on several products
  short term or medium term credit, leasing,
  factoring, etc

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The Potential Value Added

• Evaluating Impact of Commercial Actions

The Impact on Profitability and ROE.
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INDEX

• Millennium bcp Main Characteristics
• Millennium bcp SME Model
• Business Segment Strategy in Portugal
• Network Structure
• Main Financial Indicators 3rd Quarter 2007
• Maximizing Sales Opportunities Creating Agenda
  for Regular Events
• Evaluating Impact of Commercial Actions
• Establishing a Plan of Contacts Communication
  with SMEs

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3. Establish Goals and Define Plan of Contacts

• Establishing a Plan of Contacts Communication
  with SMEs

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• Establishing a Plan of Contacts Communication
  with SMEs

After the identification of the Opportunities and
the evaluation of its potential value, its
necessary to establish goals for the Client
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and define a Plan of Contacts

• Establishing a Plan of Contacts Communication
  with SMEs

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Minimum Number of Contacts per Client, during one
year

• Establishing a Plan of Contacts Communication
  with SMEs

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The plan of contacts should be established after
the setting of goals

• Establishing a Plan of Contacts Communication
  with SMEs

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120

• Establishing a Plan of Contacts Communication
  with SMEs
• Millennium bcp 4 different segments defined

GTI Approach (Commercial Decision)
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• Establishing a Plan of Contacts Communication
  with SMEs

4. Prepare and register each interaction
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RMs makes a Visit Report (available in the
Commercial Toolkit) after every contact with the
customerstating the result of the contact

• Establishing a Plan of Contacts Communication
  with SMEs

• The Registration of the Visit Report is
  fundamental
• To better control the objectives set for that
  customer
• To define strategies for closing eventual gaps
  in the objectives
• To plan for the Future

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In short, the GTI program implies.
to enable systematic planning and more frequent
contact with Clients.
Reallocation of Tasks

• Gain Time

• Test a plan / Meet The Client

• Identify Clients needs and the products that
  might fulfil those needs

• Relationship Manager

• Administrative Tasks
• First Line of response to Client
• Commercial Support Tasks

• Understanding the Client

• Identify evaluate potential opportunities

Use checklist to understand the sector of each
Client
4. Prepare and register each interaction

• Assistant

3. Establish goals and define plan of contacts

• Prepare and Print Business Dossier, Visits Report
  and record most important phone contacts

• Middle Office

• Operational Tasks
• Administrative Intense Tasks

• Register goals set for the Client and the visits
  to make, in accordance with the plan of contacts
  (priority of the Client and the available
  resources)