banco do brasil’s2 extraordinary incentivized retirement plan resizing the organizational...
TRANSCRIPT
1 Paulo Caffarelli - NOV 2016
Banco do Brasil’s
Institutional Reorganization
2
Extraordinary IncentivizedRetirement Plan
Resizing the organizationalstructure
Processes Review
Expansion of the number of employees that can join a 6-hour work day
Banco do Brasil is introducing a set of measures to adjust itself to a more dynamic and challenging new scenario, increasing its agility and competitiveness and assuring the sustainability of its businesses and helping to achieve a profitability compatible with market levels.
The Institutional Reorganization is the outcome of a detailed study which improves the service provide by BB and its customers experience, implements actions for better management of expenses and to increase productivity. Furthermore, it takes into account the respect and the ethics with which the Company historically relates to its employees.
The measures cover:
Institutional Reorganization
New practices to manageexpenses
3
BB has currently:• 4,972 full branches• 245 digital branches and digital offices• 1,781 points of service• Total: 6,998
After the restructuring:• 4,191 full branches• 500 digital branches and digital offices• 2,160 points of service• Total: 6,851
RS
SC
PR
SP
MG
RJ
ES
BA
GODF
MS
MT
TOROAC
AM
RR
PA
AP
MA
PI
CE RNPB
PEAL
SE
Resizing the organizational structure
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Superintendencies
• Review of scope and jurisdiction.
• Reduction of 28 Retail Regional Superintendencies and 3 Government Regional Superintendencies.
Regional Offices
• Greater centralization of processes with efficiency gains.
• Simplification of the support structure.
• Adjustments in number of employees.
• Closure of 2 Service Centers, 7 Regional Internal Controls units.
Head Office
• Adjustments for efficiency gain and decrease of overlapping among areas.
• New macrostructure will have 27 divisionsand 11 strategic units.
• 3 strategic units will be extinguished.
Resizing the organizational structure
The revision and the resizing of the organizational structure is comprehensive and covers all kind of units: strategic (Head Office), tactical (Superintendencies), operations and support (Regional Offices) and service network (Branches and Points of Service).
5Resizing the organizational structure
Branches
Reorganization of the service network to adapt it to the new profile and behaviour
of our clientes, with the use of synergies, optimization of structures and the
expansion of digital services.
• Banco do Brasil will keep it’s presence throught the country.
• All municipalities where the bank is present nowadays will have a point of service.
• Transformation of 379 full branches in points of service.
• 402 full branches will be closed in places where the Bank currently has more than one full
branch.
6Evolution of the Mobile Banking BB
29.7 26.9
29.6 40.3
0
10
20
30
40
50
60
70
80
Internet Mobile
59.3%
67.2%
September 2015 September 2016
9.4 million users1 billion oftrasactionsper month
5th appMore present onthe home screen
Mobile channel is the preferred by our clients for transactions
7Digital strategy at BBBB is increasing investments in the digital service model.
Today Dec/17
Digital service units (digital offices + digital branches) 245 500
Cliens of digital service units 1.3 million 4 million
Mobile users 9.4 million 15 million
BB conta Fácil (digital account) 10 thousand 1.8 million
8Extraordinary Incentivized Retirement Plan
BB will offer to its employees who are already eligible to retire the
opportunity to retire until December 31st, 2016, by their voluntary
election to join the Plan.
Potential target: • Up to 18 thousand employees.
Benefits for the employee:• Incentive to retire equivalent to 12 salaries.• Indemnity for length of service, which varies from 1 to 3 salaries, depending on the period
of time the employee was employed by the Bank.
Outflow Expenses reduction (in R$ million)
5,000 1,1839,000 2,130
10,000 2,23215,000 2,74218,000 3,048
Simulation
Simulation of expenses reduction based on the estimated level of employees
joining the Extraordinary Incentivized Retirement Plan. The values below are subject to material fluctuations depending on the profile of the retiring employees.
10Expansion of the number of employees that can join a 6-hour work day
Revision of the 2013 Carrier Segmentation, that allowed employees to work 6
hours per day instead of 8 hours, to increase the number of positions with such
working hours. Employees may choose at any time voluntarily to reduce their
working hours.
Potential target:
• 6 thousand analysts in Head Office, Superintendencies and Regional Offices.
Benefits for the employee:
• The reference value of the position will be 83.75% of that relating to the 8-hour working
day.
• Increase of 12% in the working hour, given the percentage proportional to the reduction of
two hours would represent 75% of the reference value of the 8-hour position.
11Relocation of employees
To facilitate the relocation of employees during the reorganization, BB
established specific criteria for appointments, to prioritize the
fulfillment of a vacancy with employees that were in a equivalent
position before the reorganization.
• Prioritization in fulfillment of vacancies to employees who work in
branches/offices which have excess of employees.
• Dissemination of vacancy map, with breakdown by function, position and
location throughout Brazil.
• Activation of Personal Benefits, during 4 months, from February 2017 on for the
employees not relocated before that period.
12Processes Revision
BB identified opportunities to improve its processes. The revision attempts to
simplify the daily activities on the branches and to reduce the amount of non-sales
related activities, which can be done on automated channels, contributing to
productivity gains and keeping business focus.
Expected benefits:• Reduction of service flow with targeting to automated channels.• Daily activities simplification.• Faster services to clients.• Use of technology to automate solutions providing greater confort and convenience to customers.Revised processes:• Account opening (“Conta Fácil” and Current Account).• Personal information update.• Passwords and cards services.• Debt claims.• Comunication with clients.• Decision processes and levels of authority.
13New practices in expenses managementThe savings with other administrative expenses reduction is estimated to be R$
750 million, of which R$ 450 million coming from the new organizational structure
and R$ 300 million will be achieved from implementation of a series of measures to
reduce expenses.
Examples:
• Third parties services.
• Rentals and maintenance of real estate.
• Travel expenses.
• Cash transportation.
• Electric power, gas and water.
• Security.
14Comunication with clientsClients of the branches involved in the reorganization will not need to do any additional
procedure and may retain their cards and passwords for transactions in the new branch, even
if there is a change in the account number. The branch change is automatic. All information
will be provided in advance to clients so that there is no confusion.
• Exclusive external Hot Site - www.bb.com.br/novoatendimento.
• Exclusive service channel in Central de Atendimento BB.
• Exclusive dedicated teams for this matter.
• Direct Marketing (mailing, internet banking, ATM, SMS, branches
announcements, manager contact).
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THANK YOU!
NOV 2016