1. BRD Sogelease 1 BRD SOGELEASE Just a glance on the past … or the story of a start-up in Romania JP Decrock- General Manager Piata de Leasing Hilton 4.11.03 Piata de Leasing Hilton 4.11.03

2. BRD Sogelease 2 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

3. BRD Sogelease 3 Reasons for a creation…  BRD network and necessity to offer leasing product to the customers  On line with Société Générale retail banking policy in Europe

4. BRD Sogelease 4 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

5. BRD Sogelease 5 Advantages …  Legal in favor of the lessor interest (repossession)  VAT and customs duties treatment  Portfolio of customers existing  A few investment (terms of capital) for a good ROE  Not too many competitors  Potential leasing demand (was mainly focused in cars financing)

6. BRD Sogelease 6 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

7. BRD Sogelease 7 Weak Points …  Regulation not so clear (fiscal, legal and customs)  Leasing company considered as commercial entity and not financial institution  Leasing cost > credit  Residual value too high (20%)  Leasing = cars financing  Lack of formation and professionalism (montage research)  No supervision by authorities : leasing is done by many entities without ratios to be respected. Plus capital minimum not enough.  Competition unfair (see above)

8. BRD Sogelease 8 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

9. BRD Sogelease 9 Infrastructure …  A location  A feasibility study  A management software from Paris  No furniture,no telephone and no micro, printers and faxes. It is a start up privilege.  Commercial strategy to be defined.  Staff : 2 persons from BRD  And we were in June …

10. BRD Sogelease 10 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

11. BRD Sogelease 11 Recruitment 1 st part…  Firstly in the financial and accounting sector  Then in the risk side (to think on the future unpaid) : recovery + legal  Then the communication and marketing  In the same time to give training in the leasing and reinforce commercial managers and middle office  End of 2001 = 12 people

12. BRD Sogelease 12 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

13. BRD Sogelease 13 Recruitment 2nd part…  Recruitment of expertise in the commercial side : Commercial Director and deputy knowing the leasing  Reinforce the logistic and middle office  End of 2002 = 25 people  Then reinforce our presence in the province with the first regional representatives  In the same time to increase staff in the BO in order to follow the activity  End of 2003 = 32 people

14. BRD Sogelease 14 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

15. BRD Sogelease 15 Demystify the leasing...

16. BRD Sogelease 16 The commercial strategy…  Firstly : to serve the BRD network.  Secondly : to reinforce SG presence in Romania. To give commercial support for our world network  To demystify the leasing notion : not only the cars financing. To finance all types of equipment  To be innovative : propose different solutions as pure rental, operating lease, evaluative rental  To be flexible  To be professional. This priority has been the reason for BRD SGL to resign from the leasing association.

17. BRD Sogelease 17 The expertise….

18. BRD Sogelease 18 The commercial strategy…  Firstly : to serve the BRD network.  Secondly : to reinforce SG presence in Romania. To give commercial support for our world network  To demystify the leasing notion : not only the cars financing. To finance all types of equipment  To be innovative : propose different solutions as pure rental, operating lease, evaluative rental  To be flexible  To be professional. This priority has been the reason for BRD SGL to resign from the leasing association.

19. BRD Sogelease 19 Flexible...

20. BRD Sogelease 20 The commercial strategy…  Firstly : to serve the BRD network.  Secondly : to reinforce SG presence in Romania. To give commercial support for our world network  To demystify the leasing notion : not only the cars financing. To finance all types of equipment  To be innovative : propose different solutions as pure rental, operating lease, evaluative rental  To be flexible  To be professional. This priority has been the reason for BRD SGL to resign from the leasing association.

21. BRD Sogelease 21 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

22. BRD Sogelease 22 The present situation… 2003 : our performances are above the forecast in terms of production and results BRD SGL should be the TOP3 amongst the leasing company (out of captives) in Romania in terms of production We have a portfolio very diversified. It concerns all types of companies, all sorts of equipment and all the sectors. Our cars financing + trucks = 60% of our portfolio against 85% in the leasing activity.

23. BRD Sogelease 23 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

24. BRD Sogelease 24 The future in BRD Sogelease… 2004 : to continue our commercial strategy as defined, it means : 1) to serve SG and BRD network 2) to finance the economy in Romania 3) to be very strict in the risk approach 4) to reinforce our relations with the suppliers 5) to create new products 6) and of course to maintain an acceptable return on the investments

25. BRD Sogelease 25 Chapters Reasons for a creation The advantages The weak points The infrastructure The recruitment The commercial strategy The present situation The future What are we expecting from the authorities ?

26. BRD Sogelease 26 What are we expecting from the authorities ? More dialogues before any law proposal and consequently the creation of a regulatory committee with all the parts involved in the leasing. Not only with ASLR which doesn’t represent all the leasing sector. Topics to be discussed inside this working committee : clarifications on the leasing law, propositions for supervision, analysis of the fiscal aspects plus the customs duties,...

27. BRD Sogelease 27 The end of the road..