First round presentation of casecracking. Task: establish 2-year strategy based on targeted indicators

2. • We are to describe, which way we have chosen to address all issues and to be done all tasks correctly.
We are to provide clear vision of workings
Executive summary
• We are to set a strategy of making changes, managing changes, going through building relationships
with clients of affluent segment based on positive win-win user experience.
Executive summary
support
• We are to set a strategy of making changes, managing changes, going through building relationships
with clients of mass affluent segment based on positive win-win user experience.
Segment strategy
points
• Calculations of bank profitBank profit
estimations
• We are to set timeline of establishing and developing and launching our new productsTimelines
• We represent our project teamTeam representing

3. Bank profit
estimations
We set our approach on growth of non-banking services, such as P2P
transactions, payments money transfers from 25-36% annually.
Another opportunity we see in internet aquiring, estimated annual
growth 28%. Finally we are to focus on improving level of personal
approach and cross-sales of traditional and non-traditional services
Sources EY Globalconsumerbanking survey 2014, data provided by Alfa-bank
Expected inflation
rate for Russian Rouble
People are 18-34 y.o –
heavy users of technology
Benefits presenting greatest engagements opportunities that customers would be willing to add accounts and
services, increase balances or pay a little more
People are 50+ y.o – good at
technology using but classical values
still matters
People are 53+ y.o – Prefer
classics ways of
communication and services
Average income
Affluent segment
Mass affluent
segment
*Moscow, Saint-Petersburg, Tyumen, Khnanty-Mansiysk
** Other cities
Segment characteristics
Heavy users of
technology
Good at technology,
need classics
Prefer classics ways
of communication and
services
% of population 12% 10% 15%
Male 53% 53% 48%
Female 47% 47% 52%
18-34 44% 27% 39%
35-49 29% 35% 35%
>50 27% 38% 36%
% Assets under management 18% 7% 7%
Expected GDP growth annually
Expected growth of bank profit per Affluent and
Mass-affluent segments annually
To develop a segmented strategy for affluent and mass affluent
retail customers attraction and retention, and to provide for the increase
of bank profit share in this segment from 40% to 55% by the end of 2017
Our preposition contains communication strategy with Affluent and Mass
Affluent segments., new products to establish new markets: mobile e-
wallet supports NFC, based on API 2gis and web portal Gosuslugi, internet-
aquiring service timelines of Affluent and Mass Affluent communication
strategy.
Heavy users of
technology
Good at technology, need
classics
Prefer classics ways of
communication and services
Invests in your financial good being 85% 61% 74%
Provides a plan to help you reach
financial goals
84% 62% 73%
Always seek for smth new 83% 60% 78%
Rewards needed 77% 59% 74%
Provides high average volume of deals 81% 53% 62%
Average sharein income 74% 47% 59%
Percentagereflects thosecustomers, who would be willing to increase engagement iftheir
provider of services
Percentagereflects share of those customers, who would be definedas Affluent andMass Afflunt clients

4. Inner drivers External drivers
Banking business drivers for future
Conclusion
The mobile and online payments, bln of USD
“Peer to peer” payments, and exchange transactions with no
bank account
Sources
EY Global consumer
banking survey 2014,
data provided by Alfa-
bank, The “THE FUTURE
OF PAYMENTS: 2014
report” by Business
Insider
351
432
587
624
744
342
383
460
500
555
263 287 294 325 333
0
100
200
300
400
500
600
700
800
2014E 2015E 2016E 2017E 2018E
Mobile in-store payments M-commerce Desktop
8
13
22
38
68
0
10
20
30
40
50
60
70
80
2014E 2015E 2016E 2017E 2018E
P2P payments, and exchange transactions
2017 Estimated profit in share of 55% of full population We have to main trends in money transactions: decreasing in
share of cash payments. Average, we see that main point of
payments are food and Personal care 28.2 %, 7.2% as for Auto
and vechicals, 7,6% general merchandise. So, we need a tool to
do all payments safe, fast and simple, we apply to developing e-
wallet based on NFC-technology and internet-acquiring tools to
make restauranttransactions.
Line of business
Average monthly operational income, mln. RUR
Affluent Mass Affluent Mass Grand Total
Commission income
Passives
Loans (interest
Total
We see, that we are having instantly growing
segment in money service – payments It
raises about 30% annually globally up to 744
bls of USD in the end of 2017. So, it is a clear
to believe, that national markets do follow
this trend, so we expected 20-30% growth
in mobile and online payments in Russian
Federation. In despite of regulations in non-
cash transactions, we suppose that average
sum of stand alone transaction iis about
from 80-150%. It is under mpst of the limits
provided by regulators.
Another major point is booming growth in
“peer-to-peer” transactions. It gives a raise
from 40% to 50% annually. That is huge
market, so we need to accept this challenge
creating product with such functions. It is
based on Alfa-bank cards and cards of other
banks. It makes an additional value to see
not only our current customer’s
transactions, but clients of the other banks,
to see its concern
• Customer’s time
saving;
• Easy&safe&transpa
rent pricing and
banking;
• Individual approach
• Bank – everyday
assistant;
• Simple&clear bank
operations;
• Mobile features

5. Time saving
Easy, safe and
transparent transfer of
capital
Individual
approach
Bank as an every-day
assistant
Simple&clear banking
Mobile features
What our client needs
Whatsegment-drivenopportunities
thebankhas
2
3
1
2 3
Discounting Deposits Credit
1
Multi-card
• All your cards inside the one
• You can choose which one you use
• You got a mobile app, where you can add card or see
your statistics
AlfaWallet – safe and simple payment
Alfa Bank
Internet acquiring

6. What are our benefits
Provide a restaurant with a system of
online order and payment for the
meals.
Provide a restaurant with an analytics about
its clients (gender, age, orders statistics)
Profit from the
commission from the
restaurant.
New clients will have an account
in Alfa-Bank because it is
profitably and comfortable
What do we offer for restaurants
Cashback (about 10%) from each
ride
What do we offer for taxi companies (only for clients)
Free ride to the bank
Internet acquiring
• Growth of profit because of extra-clients
• Declining of financial risks because of secure mobile
technologies
• Modern payment channel
• More loyal clients
• Payments with Visa and MasterCard
• Participation in discount programs
• Safety according to the International standards
• More purchases through the Internet

7. Line of business
Average monthly operational income, mln. RUR
Affluent Mass Affluent Mass Grand Total
Commission income 358,57 0,16 648,61 0,29 1 363,44 0,60 2 266,49
Passives 889,24 0,45 666,14 0,34 701,20 0,35 1 983,18
Loans (interest 186,45 0,07 438,25 0,15 1 830,90 0,65 2 833,11
Total 1 434,26 0,20 1 752,99 0,25 3 895,53 0,55 7 082,78
Line of business
Average monthly operational income, mln. RUR
Affluent Mass Affluent Mass Grand Total
Commission income 365,38 0,18 660,94 0,32 1 136,75 0,55 2 078,62
Passives 906,15 0,50 678,80 0,37 584,61 0,32 1 818,79
Loans (interest 190,00 0,07 446,58 0,17 1 526,49 0,59 2 598,28
Total 1 461,53 0,23 1 786,32 0,28 3 247,85 0,50 6 495,69
Line of business
Average monthly operational income, mln. RUR
Affluent Mass Affluent Mass Grand Total
Commission income 351,05 0,19 635,02 0,35 893,59 0,49 1 815,55
Passives 870,61 0,55 652,18 0,41 459,56 0,29 1 588,61
Loans (interest 182,55 0,08 429,07 0,19 1 199,96 0,53 2 269,44
Total 1 404,21 0,25 1 716,26 0,30 2 553,12 0,45 5 673,59
2017
2016
2015

8. Developing a prototype
of Alfawallet
Testing of
prototype of
Alfawallet
Launch and
publication on
Google Play,
Marketplace,
Itunes Store
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Developing a prototype
of app for multicard
Testing of
prototype of
Alfawallet
Negotiations with
mPOS vendors
Supplying of
mPOS
equipment
Launch and
publication on
Google Play,
Marketplace,
Itunes Store
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Developing a prototype
of client-app and
customer app for
internet aquiring
Testing of
prototype of
client-app and
customer app
for internet
aquiring
Launch and
publication on
Google Play,
Marketplace,
Itunes Store
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Negotiations with
Wheely
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Negotiations with
restaurants (Alfa-bank
clients)
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Negotiations with
restaurants (not)
Alfa-bank clients)
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking
Feedback and
issues cheking.
Target results
cheking
1Q 2015 2Q2015 3Q 2015 4Q 2015 1Q 2016 2Q2016 3Q 2016 1Q 2017 2Q2017 3Q 2017 4Q 20174Q 2016

11. 0
200
400
600
800
1970 1980 1990 2000 2010 2014
Restaurant industry Sales (in billions of
current dollars)*
All adults,%
Look up locations or directions 67
Order takeout or delivery 52
Use rewards or special deals 50
Make a reservation 46
Look up nutrition information 42
Pay for your meal 24
Consumers who say they would be likely to use a smartphone
for restaurant-related activities*
Provide a restaurant with a system of online order
and payment for the meals.
Provide a restaurant with an analyticsabout its clients
(gender,age, orders statistics)
* National restaurant association: “2014 Industry Forecast”
Profit from the commission from the
restaurant.
New clients will be attracted to the bank
because they will feel support of Alfa-Bank

12. Taksik Gettaxi Uber Wheely
Safety
Ordering
Price (the more “white” – the
lower is the price)
Comfort
Number of cities supported
The factor is great developed
The factor is bad developed
So we can see, that taxi “Wheely” is the best company for collaboration with Alfa-
Bank
Conclusion

13. Webmoney Paypal Yandex-money QiWI Alfa-wallet
Reliability
Simplicity
Currency
Possibility for credit
The factor is great developed The factor is bad developed
According to the needs of our clients, we should make an emphasis on the:
1) Reliability – safety of transactions
2) Simple , clear, transparent transfer of capital
3) Make an opportunity of payments in different currencies, because our clients can have a business abroad or they can make purchases abroad
4) Credit can be secondary developed, because our clients require less credit and this option cad be added further
Conclusion