UBIWorld Laura Tanno
INTERNATIONALIZATION: a way of surviving or a strategic option? A big opportunity for Italy, Italian companies and UBI 2
Internationalization: a great opportunity 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 GDP 2012 Estimated GDP 2020 GDP preview in the main high potential markets Source: Comitato Leonardo, ICE, Prometeia 2013 3
Internationalization: a great opportunity 1.343.000 85% TOTAL ITALIAN COMPANIES (PRODUCTIVE & SERVICES) 1.137.000 ITALIAN COMPANIES NOT OPERATING IN FOREIGN MARKETS 15% 94% 6% 1.067.000 ITALIAN COMPANIES NOT INTERESTED IN FOREIGN MARKETS 70.000 ITALIAN COMPANIES INTERESTED IN FOREIGN MARKETS 83% 171.000 ITALIAN COMPANIES WHICH REPRESENT 20% OF TOTAL EXPORT 206.000 ITALIAN COMPANIES OPERATING IN FOREIGN MARKETS 17% 35.000 ITALIAN COMPANIES WHICH REPRESENT 80% OF TOTAL EXPORT 4
Internationalization: a great opportunity Nord West 156.457 (+0,6%) Nord East 121.929 (+2,4)% Most Important italian regions Regioni più for significative UBI Group per il Gruppo UBI Banca 2013 2013/2012 milioni di euro % variazioni % Center 64.121 (-0,7%) Islands 16.540 (-15,0) South 25.971 (-4,1%) 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 Source: ISTAT 5
6 Internationalization: a great opportunity
Clients operating in foreign markets are better than those concentrated only on the domestic market! IS IT TRUE? 7
Rating UBI Corporate clients (updated at february 2014) Rating Clients operating in foreign markets N Clients % clients Rating Low Rating 2.370 44% medium Rating 2.395 45% High Rating 599 11% Total 5.364 Clients NOT operating in foreign markets N Clients % clients Rating Low Rating 5.203 32% medium Rating 7.201 45% High Rating 3.619 23% Total 16.023 8
Profitability Corporate clients (updated at february 2014) Profitability Margini Clients operating in foreign markets 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 Estimate Average gross margin 2014 Eur 48.900 Clients NOT operating in foreign markets 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 9
What do italian companies do in order to go international? Very often the process they follow is not structured and planned 10
Made in Italy: Advisory firms International events Agreement between ConfCommercio and Ministero dello Sviluppo Economico Confindustria Verona and Banca Popolare Vicenza organise the third Internationalization event Chambers of Commerce The Made in Italy in the world Trade Association Seminars on internationalization and fiscal aspects 11
supporting Italian companies in the foreign markets.. 12
Internationalization process: Italian companies and the Bank Italian Companies The Bank Main Problems Purposes Purposes 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 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 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 13
Internationalization process Main Advantages Increase of revenues and profits Diversification of risks Possibility of acceding to new ideas and experiences Increase of competitiveness in the domestic market Main Risks Economic risks Financial risks Political risks Corporate risks Export Plan Background: company s history, purposes and products Analysis of different foreign markets Business plan Evaluation of alternative paths Check of results 14
UBIBanca wants to be the right partner for italian companies who approach foreign markets 15
GoToWorld is the service offered by UBIBanca for supporting italian companies in the internationalization process 16
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. 1 Description Phases 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 2 Prospettiva 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 3 Progetto Operative plan for the internationalization process including analysis of the costs, resources, timing, activities to be implemented 17
GOTOWORLD Check-up 1 Check Up 2 Prospettiva 3 Progetto COMPANY PRODUCTS/SERVICES PREVIOUS INTERNATIONAL EXPERIENCES INTERNATIONALISATION PROJECT 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 < 30%: the company needs to implement its strategic plans in order to increase its competitive capability. Total Ratio 32,25% 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 18
GOTOWORLD Prospettiva 1 Check Up 2 Prospettiva 3 Progetto Analysis of wordwide importing countries for all the commercialized products of the company 19
GOTOWORLD Prospettiva 1 Check Up 2 Prospettiva 3 Progetto Analysis for each product: % of wordwide import for each of the commercialized products of the company 20
GOTOWORLD Prospettiva 1 Check Up 2 Prospettiva 3 Progetto 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 21
GOTOWORLD Prospettiva 1 Check Up 2 Prospettiva 3 Progetto List of products List of the main importing countries for each product 22
GOTOWORLD Progetto 1 2 Check Up Prospettiva 3 Progetto GANNT CHART GANNT Chart: very useful for the company in order to correctly plan each phase of the process 23
GOTOWORLD Progetto 1 2 Check Up Prospettiva 3 Progetto DETAILED BUDGET 24
Which are the main products and services provided by UBIBanca to its clients? 25
UBI World : mapping of products and services Financial Services Loans/advance Trade Finance 63 BANKING SERVICES Servizi Operational Transazionali Services Bank Transfer/ checks Cash Management Exchange/ Derivative on exchange Securities Advisory services Protection from risks (country risk, counterparty risk, exchange/rate risk Training 26 NON BANKING SERVICES Advisory services Professional Services: Legal / fiscal/corporate support, market researches Operations services : logistic, accounting, translations Human Resources services : recruiting 26
UBI and its main competitors CURRENT PRODUCTS OFFERED BY UBI % of coverage of the market 67% 27
UBIWorld Offerta (Gamma Prodotti Processo e servizi) Commerciale 28
UBI World : guidelines Pianificazione 1 Internationalization 2 Geographical 3 Phases coverage Quality Ingresso Crescita 29
UBI World : guidelines 1 Internationalisation 2 Geographical coverage 3 phases Quality Planning Entrance Maintenance Development Exit Current Accounts (Euro or currency) BANKING SERVICES Documentary Credit Advances, and export / import financings Cash management /Cash Pooling Collection and payments Securities and exchanges Cover from exchange risks Import financing (Euro/currency) and loans for internationalisation International Factoring NON BANKING SERVICES Market analysis Research of commercial counterparties Support on legal/ fiscal/ corporate issues Accounting/ logistics / IT Recruiting and education Support to missions 30
UBI World : guidelines 1 Internationalisation 2 Geographical coverage 3 phases Quality UR Mosca F. Pelazzo BC Vienna A. Stockert UR Shanghai LuBo UR Mumbai R. Balsari UR Hong Kong A. Croci UR San Paolo I. Guerrerio 31
UBI World : guidelines 1 Internationalisation 2 Geographical coverage 3 phases Quality CIS 33 NORD AMERICA 7 EUROPA 29 MEDIO ORIENTE 4 ESTREMO ORIENTE 53 SUD AMERICA 18 AFRICA 7 INDIA 18 AUSTRALIA 1 32
UBI World : guidelines 1 Internationalisation 2 Geographical coverage 3 phases Quality NON BANKING SERVICES UBI Banca has partnership with qualified counterparties which provide high quality and certified services BANKING SERVICES Investments in R&D in order to join high quality standards for the market 33