2019 Financial
and Social Report

Millennium Goodie

In 2019, the goodie platform (consisting of a mobile application and a goodie.pl website) strengthened its position on the market, as confirmed by a stable increase in all activities and launch of new attractive functionalities. By 31 December, the goodie app has been downloaded to nearly 1.5 million phones, out of which 570 thousand in 2019 alone. 825 thousand loyalty cards have already been registered in 59 different loyalty programs and in the program for scanning receipts in sales campaigns conducted by shopping malls. The users transferred nearly 100 thousand traditional plastic loyalty cards to the app.

The year 2019 was a period of dynamic development of goodie’s flagship functionality, i.e. the cashback program. The sum of turnover generated by users exceeded PLN 85 million and the total amount of cashback for online purchased was nearly PLN 3.5 million.

The new functionalities worth mentioning are the program of collecting stamps for restaurant orders, to be exchanged to rewards. The application regularly added new virtual maps of the largest shopping malls (37 at the end of December). Also in December, gift eCards were launched, a gift that may be personalized and sent to another person. Goodie has also implemented a functionality of locating users inside buildings based on a beacon network.

Millennium Leasing

Millennium Leasing Sp. z o.o., a subsidiary of Bank Millennium, was formed in 1991 and is one of the leasing companies with the longest operating history on the market in Poland. Its activities include financing of any fixed assets: passenger cars and trucks, machinery and equipment for most industries, heavy vehicles (for road, rail, water and air transport) and real properties.

The aggregate value of the leasing agreements disbursed by the company in 2019 amounted to PLN 3.5 billion, which was at the 2018 level. Signing more than 231 thousand lease agreements from the beginning the company’s existence for a total amount of PLN 35.7 billion speaks to the company’s business volume. As at 31 December 2019, the value of capital engaged in in-force lease agreements is PLN 6.8 billion, signifying 5.4% growth y/y.

As a socially-responsible organization, Millennium Leasing undertakes activities to create awareness and ensure financial profitability of energy-efficient business activity. In 2019, the company used programs organized by EBRD (PolGEFF) for this purpose but also, such as in the case of the Leasing Eko Energia product, refunded a portion of financing costs to customers with its own resources. In the past year, Millennium Leasing encouraged customers to use the offer of financing environmentally-friendly solutions as part of the MilleSun program to finance photovoltaic equipment. The product is offered through a streamlined procedure and selection of a supplier authorized by Millennium Leasing is a factor that makes it easier to receive financing.

In the real estate financing area, Millennium Leasing promoted the Built&Lease product. It is a comprehensive method of financing the process of building and using real properties with manufacturing plants or other large commercial facilities. It combines the benefits of flexible credit financing during the construction period with the operating lease formula after the property is commissioned for use.

In 2019, Millennium Leasing also offered the Autokomfort+ service launched three years before, which enabled convenient, quick and economic service of vehicles in the up to 3.5 tons category. In the service, customers receive access to the wholesale purchase of parts and maintenance services in attractive discounted prices that are fixed across Poland, also in authorized service stations.

Acting through a broker, the company enabled the customers to select services offered by leading insurance companies in order to insure risks associated with the leased assets comprehensively. Millennium Leasing customers were able to choose their preferred options of property insurance, motor insurance (including long-term policies with fixed insurance rates over the entire term of the agreement) as well as additional insurance products.

The services offered by Millennium Leasing are sold by leasing advisors in 67 outlets across Poland. They are actively supported by relationship managers in retail branches and Bank Millennium’s corporate banking network. As a result, the company offers businesses a broad range of financial services, which include both leasing and banking products. Millennium Leasing advisors are also able to tailor the offer to the individual needs of their clients. Through a well-developed sales network, Millennium Leasing services are available throughout Poland.

Millennium TFI investment funds

Millennium Towarzystwo Funduszy Inwestycyjnych S.A is a licensed financial institution operational since 2001 as an entity creating and managing investment funds. At the end of 2019, the company managed customer assets worth PLN 4.5 billion, up 7% from the previous year. The growth was driven by an increasing value of investments in funds and positive net sales at PLN 186 million. At the end of 2019, Millennium funds had more than 120 thousand participants.

The main goal of Millennium TFI’s activity is delivering attractive and effective investment solutions to clients and providing professional customer service. The fund managers are consummate professionals with long years of experience and excellent insight into financial markets.

In H1 2019, Millennium TFI established 8 target-date sub-funds under the Millennium PPK SFIO umbrella fund and was entered in the PPK Register kept by Polski Fundusz Rozwoju S.A. Accordingly, the company now meets the formal requirements for operating Employee Capital Schemes (PPKs) and entering into agreements to manage and operate PPKs. In cooperation with its partners, the company actively participated in the offering of modern system tools to employers to launch and operate Employee Capital Schemes in the 1st phase of the program.

At present, Millennium TFI S.A. currently manages four funds: the Open-End Investment Fund with 6 separate sub-funds investing on the Polish market (Millennium FIO), Specialist Open-End Investment Fund with 6 separate sub-funds investing on the global markets (Millennium SFIO), Millennium PPK Specialist Investment Fund with 8 separate sub-funds and the private Millennium Dividend Closed-End Investment fund dedicated to Bank Millennium’s Private Banking customers. Through its open-ended funds, the Company offered participation units in 20 investment sub-funds with different investment strategies and different risk levels. In 2019 most of the investment sub-funds brought participants positive and competitive rates of return compared to other products, up to 20% for the most risky equity strategies.

The company’s broad offering includes also various savings products based on the investment funds it manages. Its most popular products include the Millennium Investment Plan, which allows customers to purchase several funds within the pre-defined investment structures, and Individual Retirement Accounts. Millennium TFI is one of the leading fund management companies on the market in terms of the number of managed Individual Retirement Accounts (IKE). Millennium TFI currently manages IKE programs for 35 thousand customers, with the total asset value of PLN 390 million. At the end of 2019, the total value of assets invested in various savings products was approximately PLN 1 billion.

Brokerage activity - Millennium DM

The brokerage activity in the Bank Millennium Group is run by Millennium Dom Maklerski S.A. It renders a broad range of brokerage services, especially the execution of buy or sell orders for financial instruments for the principal’s account, buying and selling financial instruments for its own account, running securities accounts and cash accounts to serve them, investment advisory services, advisory services concerning capital structure and strategy as well as combining, splitting and acquiring businesses, offering financial instruments, rendering services to perform firm and standby underwriting agreements, preparing investment and financial analyses and other recommendations related to financial instruments.

In 2019 Millennium DM’s stock trading volume on the equity market was about PLN 2 billion, giving the company a 0.5% market share according to the Warsaw Stock Exchange’s data. As at 31 December 2019 Millennium DM had provided services to more than 25 thousand investment accounts and acted as a market maker and as an issuer’s market maker for companies listed on the Warsaw Stock Exchange and for corporate bonds listed on BondSpot. Millennium DM also acted as an intermediary in four stock buyback campaigns of public companies. We also participated in a stock squeeze-out on the WSE announced by a group of investors.

In 2019, Millennium DM also provided analysis and consulting services to external clients as well as group companies. The most relevant of these included: investment advisory service related to unit-linked insurance funds for one of the leading domestic insurers, due diligence of investment funds and insurance companies cooperating with the group, as well as research related to specific sectors, public and private companies.

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