bp sondrio business plan

Banca Popolare di Sondrio - Approval of the 2022-2025 business plan

The business plan confirms Banca Popolare di Sondrio's nature: "as a bank acting as a bank", determined to be close to its customers and to grow in asset management and in bancassurance, with a commitment to innovate in digital space.

More details in the attached press release.

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Banca Popolare di Sondrio S.p.A

It0000784196.

• Banca Popolare di Sondrio S p A : 2022-2025 Group’s Business Plan

_________________________________________________________________________________________________________________

PRESS RELEASE

APPROVAL OF THE 2022 - 2025 BUSINESS PLAN

THE BUSINESS PLAN CONFIRMS BANCA POPOLARE DI SONDRIO'S NATURE: AS A "BANK ACTING AS A BANK", DETERMINED TO BE CLOSE TO ITS CUSTOMERS AND TO GROW IN ASSET MANAGEMENT AND IN BANCASSURANCE, WITH A COMMITMENT TO INNOVATE IN THE DIGITAL SPACE. OVER 550 €MM IN DIVIDENDS OVER THE NEXT FOUR YEARS, WITH ANNUAL PAYOUT RATIO AT 50%.

SIGNIFICANT AND SUSTAINABLE VALUE CREATION

• Net profit growing to 323 €MM in 2025
• ROE increasing to 9.2% in 2025

INCREASING SHAREHOLDER DISTRIBUTIONS

• Over 550 €MM in expected dividends over the course of the business plan
• 50% payout ratio every year

SUSTAINED CORE PROFITABILITY

• Core revenues increasing to 1.1 €BN in 2025
• Interest margin growing to 667 €MM in 2025, with a 6% 2021-2025 CAGR
• Net commissions growing to 443 €MM, with a 5.5% 2021-2025 CAGR

CREDIT AS THE HEART OF BPS'S VALUE PROPOSITION;

A NEW PUSH IN WEALTH MANAGEMENT AND BANCASSURANCE

• Customer loans increasing to 35.9 €BN in 2025
• Assets under management and insurance assets at 13.8 €BN in 2025 with a +12% 2021-2025 CAGR
• Insurance premiums increasing at +11% 2021-2025 CAGR

SOLID CAPITAL BASE AND ROBUST LIQUIDITY POSITION

• 15.6% CET 1 ratio at the end of 2025 and above 15% in each business plan year
• Liquidity Coverage Ratio above 140% in each business plan year
• Net Stable Funding Ratio above 125% in each business plan year

CONTINUOUS DERISKING ACTIVITY

• NPL ratio decreasing to 3.8% in 2025
• Cost of risk at 47 bps in 2025

SIGNIFICANT INVESTMENTS IN IT DEVELOPMENT

• Investments in employees and digitalization, while containing overall costs at 619 €MM in 2025
• Cost/income ratio decreasing to 51.8% in 2025

FOCUS ON ESG

• Integration of ESG factors in credit processes and approval of a responsible credit policy
• Identification of the path to carbon neutrality and portfolio alignment
• Development of ESG products and services

"I am proud to present our first Business Plan after transforming into a S.p.A. at the end of 2021. Since our foundation in Sondrio in 1871, we have been one of the first cooperative banks in Italy. Our mission is to grow with our customers and our employees, beyond the limits of a traditional Local Bank, with accuracy, availability for our customers, and closeness to our communities, preserving our identity while always changing and innovating", said dott. Mario Alberto Pedranzini, Banca Popolare di

Sondrio's CEO.

"Over the last ten years, characterized by the well-known contextual complexities, contrary to the market average, our operating margin has largely covered and exceeded our credit losses, and our capitalization is market-leading. We are the Italian Bank with the most organic growth, investing in our people and in our network.

The "Next Step" 2022-2025 Business Plan highlights the prospects of a bank acting as a bank, focussed on our distinctive areas, and committed to growing in key segments including Wealth Management and Bancassurance, where we deem to have further potential for growth, and evolving our relationships with consumers digitally. Our Bank foresees the distribution of over half a billion in dividends, with a 50% payout every year."

Today, at Palazzo Mezzanotte in Milan, a presentation will be held at 11:00 AM to showcase the Plan's contents.

The event can be streamed via video/audio at the following link: https://channel.royalcast.com/popsoit/#!/popsoit/20220629_1

The supporting documentation will be available before the presentation starts in the

Investor Relations page on the Bank's website: https://istituzionale.popso.it/it/investor-relations/presentazioni-finanziarie

2022 - 2025 strategic guidelines

FOCUS ON DISTINCTIVE AREAS

• Consolidation of customer loans: +16% from 2021 to 2025
• Unique positioning in international operations and services, revenue diversification thanks to BPS Suisse (ca. 9% of the Group's net profit), important contribution of treasury services offered to Institutional Entities (1,800 customers in 2025)
• Stronger synergies between product factories for a 360 degree customer development: Factorit turnover expected at 19.2 €BN in 2025 (+6% 2021-2025 CAGR)
• Quick set up of new operations and development of the ability to intercept new current and prospective demand flows (e.g. tax credits)

QUALIFIED GROWTH IN KEY AREAS

• Wealth management for high potential customers: +12% 2021-2025 CAGR for wealth management/insurance volumes
• Strengthening of the current Bancassurance model, with customer premiums increasing by over 50%
• Reference partner for customers to capitalise on PNRR-related opportunities
• Contribution of payments business to revenue diversification: ca. +10% 2021- 2025 CAGR in transaction volumes

DIGITAL EVOLUTION OF CUSTOMER RELATIONS

• Enhancement of digital service access points, centrality of the «universal» branch strengthened by specialized skills
• Process digitalization and robotization, freeing up time for higher value-added commercial activities
• Growth of the fully digital "Virtual Unit" channel (+36,000 customers)
• Strengthened multi-channel and «phygital» model: Digital Hub for the setup of fully digital sales processes, commercial action and remote assistance, new products and services from the «open» ecosystem
• Upgrade of the tech infrastructure and digital reskilling of employees

TRANSVERSAL ELEMENTS

• Corporate identity and skills strengthening through training and incentives (130,000 annual training hours and improvement of performance management systems, review of compensation policies)
• Sustainability is at the heart of the Group's operations: Integration of ESG factors into business and operations, through the definition of quantitative targets by the end of 2022 and their monitoring via selected performance indicators selected among international best practices.

BUSINESS PLAN'S MAIN FINANCIAL TARGETS

This is an excerpt of the original content. To continue reading it, access the original document here .

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• Original Document

Banca Popolare di Sondrio Scpa published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 29 June 2022 05:46:09 UTC .

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Banca Popolare di Sondrio S.p.A

It0000784196.

• Banca Popolare di Sondrio S p A : 2022-2025 Group’s Business Plan

_________________________________________________________________________________________________________________

PRESS RELEASE

APPROVAL OF THE 2022 - 2025 BUSINESS PLAN

THE BUSINESS PLAN CONFIRMS BANCA POPOLARE DI SONDRIO'S NATURE: AS A "BANK ACTING AS A BANK", DETERMINED TO BE CLOSE TO ITS CUSTOMERS AND TO GROW IN ASSET MANAGEMENT AND IN BANCASSURANCE, WITH A COMMITMENT TO INNOVATE IN THE DIGITAL SPACE. OVER 550 €MM IN DIVIDENDS OVER THE NEXT FOUR YEARS, WITH ANNUAL PAYOUT RATIO AT 50%.

SIGNIFICANT AND SUSTAINABLE VALUE CREATION

• Net profit growing to 323 €MM in 2025
• ROE increasing to 9.2% in 2025

INCREASING SHAREHOLDER DISTRIBUTIONS

• Over 550 €MM in expected dividends over the course of the business plan
• 50% payout ratio every year

SUSTAINED CORE PROFITABILITY

• Core revenues increasing to 1.1 €BN in 2025
• Interest margin growing to 667 €MM in 2025, with a 6% 2021-2025 CAGR
• Net commissions growing to 443 €MM, with a 5.5% 2021-2025 CAGR

CREDIT AS THE HEART OF BPS'S VALUE PROPOSITION;

A NEW PUSH IN WEALTH MANAGEMENT AND BANCASSURANCE

• Customer loans increasing to 35.9 €BN in 2025
• Assets under management and insurance assets at 13.8 €BN in 2025 with a +12% 2021-2025 CAGR
• Insurance premiums increasing at +11% 2021-2025 CAGR

SOLID CAPITAL BASE AND ROBUST LIQUIDITY POSITION

• 15.6% CET 1 ratio at the end of 2025 and above 15% in each business plan year
• Liquidity Coverage Ratio above 140% in each business plan year
• Net Stable Funding Ratio above 125% in each business plan year

CONTINUOUS DERISKING ACTIVITY

• NPL ratio decreasing to 3.8% in 2025
• Cost of risk at 47 bps in 2025

SIGNIFICANT INVESTMENTS IN IT DEVELOPMENT

• Investments in employees and digitalization, while containing overall costs at 619 €MM in 2025
• Cost/income ratio decreasing to 51.8% in 2025

FOCUS ON ESG

• Integration of ESG factors in credit processes and approval of a responsible credit policy
• Identification of the path to carbon neutrality and portfolio alignment
• Development of ESG products and services

"I am proud to present our first Business Plan after transforming into a S.p.A. at the end of 2021. Since our foundation in Sondrio in 1871, we have been one of the first cooperative banks in Italy. Our mission is to grow with our customers and our employees, beyond the limits of a traditional Local Bank, with accuracy, availability for our customers, and closeness to our communities, preserving our identity while always changing and innovating", said dott. Mario Alberto Pedranzini, Banca Popolare di

Sondrio's CEO.

"Over the last ten years, characterized by the well-known contextual complexities, contrary to the market average, our operating margin has largely covered and exceeded our credit losses, and our capitalization is market-leading. We are the Italian Bank with the most organic growth, investing in our people and in our network.

The "Next Step" 2022-2025 Business Plan highlights the prospects of a bank acting as a bank, focussed on our distinctive areas, and committed to growing in key segments including Wealth Management and Bancassurance, where we deem to have further potential for growth, and evolving our relationships with consumers digitally. Our Bank foresees the distribution of over half a billion in dividends, with a 50% payout every year."

Today, at Palazzo Mezzanotte in Milan, a presentation will be held at 11:00 AM to showcase the Plan's contents.

The event can be streamed via video/audio at the following link: https://channel.royalcast.com/popsoit/#!/popsoit/20220629_1

The supporting documentation will be available before the presentation starts in the

Investor Relations page on the Bank's website: https://istituzionale.popso.it/it/investor-relations/presentazioni-finanziarie

2022 - 2025 strategic guidelines

FOCUS ON DISTINCTIVE AREAS

• Consolidation of customer loans: +16% from 2021 to 2025
• Unique positioning in international operations and services, revenue diversification thanks to BPS Suisse (ca. 9% of the Group's net profit), important contribution of treasury services offered to Institutional Entities (1,800 customers in 2025)
• Stronger synergies between product factories for a 360 degree customer development: Factorit turnover expected at 19.2 €BN in 2025 (+6% 2021-2025 CAGR)
• Quick set up of new operations and development of the ability to intercept new current and prospective demand flows (e.g. tax credits)

QUALIFIED GROWTH IN KEY AREAS

• Wealth management for high potential customers: +12% 2021-2025 CAGR for wealth management/insurance volumes
• Strengthening of the current Bancassurance model, with customer premiums increasing by over 50%
• Reference partner for customers to capitalise on PNRR-related opportunities
• Contribution of payments business to revenue diversification: ca. +10% 2021- 2025 CAGR in transaction volumes

DIGITAL EVOLUTION OF CUSTOMER RELATIONS

• Enhancement of digital service access points, centrality of the «universal» branch strengthened by specialized skills
• Process digitalization and robotization, freeing up time for higher value-added commercial activities
• Growth of the fully digital "Virtual Unit" channel (+36,000 customers)
• Strengthened multi-channel and «phygital» model: Digital Hub for the setup of fully digital sales processes, commercial action and remote assistance, new products and services from the «open» ecosystem
• Upgrade of the tech infrastructure and digital reskilling of employees

TRANSVERSAL ELEMENTS

• Corporate identity and skills strengthening through training and incentives (130,000 annual training hours and improvement of performance management systems, review of compensation policies)
• Sustainability is at the heart of the Group's operations: Integration of ESG factors into business and operations, through the definition of quantitative targets by the end of 2022 and their monitoring via selected performance indicators selected among international best practices.

BUSINESS PLAN'S MAIN FINANCIAL TARGETS

This is an excerpt of the original content. To continue reading it, access the original document here .

Attachments

• Original Link
• Original Document

Banca Popolare di Sondrio Scpa published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 29 June 2022 05:46:09 UTC .

Latest news about Banca Popolare di Sondrio S.p.A

Chart banca popolare di sondrio s.p.a.

Company Profile

Income statement evolution, ratings for banca popolare di sondrio s.p.a, analysts' consensus, eps revisions, quarterly revenue - rate of surprise, sector other banks.

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Italy: EIB Group and Banca Popolare di Sondrio: €400 million in new financing for SMEs

• 23 June 2022
• A synthetic securitisation operation on a portfolio of corporate loans with a value of around €1 billion has been finalised.
• The operation is being supported by the European Guarantee Fund (EGF) and is part of the €540 billion package approved by the European Union to respond to the economic impact of COVID-19.

Banca Popolare di Sondrio (BPS) and the EIB Group — which includes the European Investment Bank (EIB) and the European Investment Fund (EIF) — have concluded a synthetic securitisation operation on a portfolio of loans granted by BPS to corporate counterparties with a value of around €1 billion.

In particular, the operation saw the EIB Group grant a guarantee on the €48 million junior tranche of the synthetic securitisation from the European Guarantee Fund (EGF) , a financial instrument and key component of the €540 billion package of measures approved by the European Union in 2020 and specifically intended to tackle the economic difficulties and production slowdowns caused by the pandemic.

The operation enables BPS — backed by UniCredit AG as arranger and Chiomenti as legal advisor — to further meet the working capital and investment needs of small and medium-sized enterprises (SMEs) by providing them with low-interest loans for more than €400 million in new financing over the next 18 months. Over 2 000 Italian SMEs are set to benefit.

Through this initiative, the EIB Group is pursuing its strategic goal of supporting European SMEs in the aftermath of the pandemic, facilitating access to credit and encouraging the intervention of financial institutions that can provide medium to long-term financing to these companies.

EIB Vice-President Gelsomina Vigliotti said: “The consequences of the pandemic, the energy crisis and inflation are severely affecting small and medium-sized enterprises. Meeting their financing needs is one of the EIB Group’s key priorities and the operation signed with Banca Popolare di Sondrio confirms the EIB's commitment to boosting investment and the competitiveness of our SMEs on the ground.”

“This new, European Guarantee Fund-backed agreement enables us to strengthen our relationship with Banca Popolare di Sondrio, aiming to facilitate access to credit for Italian SMEs and thereby helping them to grow and thrive,” added EIF Chief Executive Alain Godard.

Banca Popolare di Sondrio Managing Director Mario Alberto Pedranzini said: “This agreement strengthens our longstanding partnership with the EIB Group, giving it new impetus. We are proud of this partnership, particularly at this delicate time for Italy and Europe. This operation reaffirms our formal and practical commitment to supporting SMEs and their growth. They are the engine of the Italian economy and our most important area of action, as we have always been a bank with strong local connections.”

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2021, the EIB Group provided more than €36 billion in financing for projects in Italy.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. The EIF is also active in supporting climate fund investments and infrastructure with a strong focus on environmental sustainability. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

Banca Popolare di Sondrio (BPS) — founded in Valtellina in 1871 — was one of Italy's first popular banks to apply the cooperative credit model. Over time, its gradual expansion and regional presence enabled it to extend its activities to the entire country, while still maintaining a strong link with its area of origin. Banca Popolare di Sondrio boasts a long history of growth, values and culture, based on mutual trust and nourished by a passion for work, constant attention to customers and the evolution of their needs. On the strength of its solid founding principles that have inspired a balanced and profitable business model, the bank looks to the future with confidence and works with determination to continue to carry out its activities effectively, to the benefit of customers and all stakeholders.

Related project(s)

Bps enhanced sme support - egf.

EGF first loss guarantee on a granular portfolio of loans to SMEs and MidCaps to support new lending to SMEs in italy

Lorenzo Squintani

• [email protected]
• +352437982528

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2022-292-EN

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Popolare di Sondrio, industrial plan: 323 million in profits, 550 million in dividends and payout at 50%

The new plan of Pop of Sondrio aims to give a new boost to managed savings and bancassurance - Focus on digital and sustainability - The stock rises against the trend

La Popular of Sondrio approved the new Next Step 2022-2025 business plan , the first from the transformation of the institution from a cooperative into a joint-stock company, which envisages a significant and sustainable generation of value with growing shareholder remuneration: profitability up to 9,2%; net profit of 323 million euros in 2025; overall distribution of over 550 million in dividends with a stable 50% payout ratio over the plan horizon. And the market appreciates the new plan: the stock up 2,53% to 3,41 euros for a capitalization of 1,55 billion, while the Ftse Mib lost more than 1%.

The Valtellina institute aims to give a new boost to the managed savings bancassurance as well as solid capitalization, less sensitivity to inflationary pressures and targeted investments in digital. Here are the new guidelines unveiled by the Bank's new business plan.

Popolare di Sondrio, business plan 2022-2025: all the numbers

The project aims to achieve a Net income of 323 million euros in 2025, an increase of 20% compared to 2021 (269 million, 263 million expected for 2023). The interest margin instead it should grow from 529 million in 2021 to 610 million in 2023 to 667 million in 2025.

The former popular explains, that the profitability (Roe) is expected to increase to 9,2% in 2025 (from 8,9% in 2021 and 8,1% in 2023), as well as shareholder remuneration with over 550 million euros dividends foreseen in the span of the plan and a payout ratio which is expected to rise from 34% in 2021 to 50% from 2023 onwards.

The bank is betting on the growth of assets under management which should rise from 6,796 billion in 2021 to 8,457 billion in 2023 up to 10,875 billion in 2025, an increase of about 40%, while the insurance collection it should go from 1,909 billion in 2021 to 2,271 billion in 2023 to 2,883 billion in 2025. Loans to customers are expected to grow in turn from 31,059 billion to 35,879 billion in 2025.

Cet 1 ratio above 15%, cost/income ratio at 51,8%

Il relationship between costs and revenues should fall from 54,1% in 2021 to 51,8% in 2025, the cost of credit risk will go from 0,43 in 2021 to 0,52 in 2023 to settle at 0,47 in 2025. As for the non-performing loans , gross Npe is expected to drop significantly from 5,8% in 2021 to 4,3% in 2023 to 3,8% in 2025, with coverage starting from 55,4% in 2021 to 45,8% expected in 2025. The Cet 1 ratio phased in is always expected to be above 15% (a very high level), from 15,8% in 2021 to 15,6% in 2025.

Investments in technology and focus on ESG factors in the Popolare di Sondrio plan

The business plan focuses heavily on digital . In particular, investments in personnel and digitization are envisaged, with the cost base under control. IT spending is expected to grow to 120 million in 2025 (from 86 million in 2021); operating costs of €619 million in 2025 (from €558 million in 2021) with a cost/income ratio expected to fall to 51,8% in 2025 (from 54,1% in 2021). 

Particular emphasis is given to the integration of Esg factors in business. The institute led by Mario Pedranzini foresees a strengthening of the commitment towards sustainability e inclusion , through a series of initiatives: definition of ESG performance targets; integration of sustainability into the Bank's main processes, through an adjustment of policies and internal regulations, particularly in the areas of credit, investments and risk management; development of new sustainable products and services; responsible investment guidelines; issue of new ESG bonds; adherence to the most relevant ESG initiatives for the banking sector; actions to further strengthen governance; continuous monitoring of emission and energy performance; definition of a broader ESG communication strategy.

Pedranzini (ad Pop Sondrio): “We are a bank that does banking”

“It is a source of pride for me to be able to present our first business plan after having transformed into a joint-stock company at the end of 2021”, explains CEO Pedranzini. “With the foundation that took place in Sondrio in 1871, we were one of the first cooperative banks in the country. Our vocation is to grow together with our customers while preserving our identity but continuing to innovate".

“Over the past ten years, characterized by the well-known context difficulties, our operating margin has amply covered and exceeded credit losses, unlike the sector average”, continued Pedranzini, adding that “our capitalization is at the top of the system. We are the Italian bank that has grown the most organically, investing in people and the network. The Next Step 2022-2025 business plan tells the prospects of a 'bank that does banking' focused on its own distinctive areas, intending to grow in areas, such as asset management and bancassurance, in which we believe we still have ample potential, evolving the relationship with our customers in a digital sense”.

FIRSTonline editorial team

FIRSTonline is an independent web journal of economics, finance and stock exchange published by AL Iniziative Editoriali Srl with registered office in Rome, founded and controlled by Ernesto Auci e Franco Locatelli and owned by two minority shareholders (Alessandro Pavesi and Laura Rovizzi). The portal and its applications are created in daily life by two agile editorial offices, one in Milan and one in Milan Roma , and by an innovative and effective team of innovation and web managers.

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bp Integrated Energy Company strategy update: Growing investment, growing value, growing distributions

• Performing: 2022 EBITDA $60.7 billion; full year operating cash flow $40.9 billion; net debt $21.4 billion, lowest for almost a decade; ROACE 30.5%; full year tax $15.1 billion; strongest upstream plant reliability on record; lowest production costs in 16 years
• Transforming: investment in transition growth engines c. 30% of 2022 total investment, up from c. 3% in 2019 
• Investing more in the energy transition and bp’s transition, investing more in supporting energy security and energy affordability today 
• Up to $8 billion more into transition growth engines by 2030 – growing in higher-return bioenergy, and convenience & EV charging; focusing hydrogen and renewables & power where bp can leverage integration 
• Up to $8 billion more into oil and gas by 2030 – targeting short-cycle fast-payback opportunities with lower additional operational emissions 
• Aim to materially increase earnings through 2030 – aiming for $51-56 billion group EBITDA in 2030
• Growing dividends: 10% increase in dividend per ordinary share for fourth quarter, representing 21% growth from 4Q 2021.
• Growing buybacks: further $2.75 billion buybacks announced today; total of $11.25 billion buybacks announced from 2022 surplus cash flow
• Increasing targets: over 12% annual EBIDA per share growth to 2025; over 18% ROACE in 2025 and 2030

Since introducing its new purpose, net zero ambition, organisation and strategy in 2020, bp has built strong momentum across its strategy and delivered value for shareholders. The major global uncertainties experienced in the past three years – from the pandemic and its aftermath to the impact of Russia’s attack on Ukraine – have increased the world’s focus on energy security and affordability as well as accelerated the drive towards a lower carbon energy system.

“It’s clearer than ever after the past three years that the world wants and needs energy that is secure and affordable as well as lower carbon – all three together, what’s known as the energy trilemma”

Bernard looney, chief executive officer.

bp chief executive Bernard Looney said: “It’s clearer than ever after the past three years that the world wants and needs energy that is secure and affordable as well as lower carbon – all three together, what’s known as the energy trilemma. To tackle that, action is needed to accelerate the transition. And – at the same time – action is needed to make sure that the transition is orderly, so that affordable energy keeps flowing where it’s needed today. 

"As an integrated energy company, bp is very deliberately set up to help on both counts. With three years of delivery and track record – we have increased confidence our strategy is working. And with today’s announcement we are leaning further in. We are growing our investment into our transition and, at the same time, growing investment into today’s energy system. In doing so - we see tremendous opportunity to create value. And it’s what governments and customers are asking of companies like us.”

bp now aims to accelerate the growth in earnings from its transition growth engines (TGEs) while also delivering higher earnings than previously expected from its oil and gas businesses through 2030 - both compared to bp’s previous aims (1) . 

bp plans to support this growth by disciplined increases in investment over the period to 2030 of up to $8 billion in the TGEs and up to $8 billion in oil and gas. bp is adjusting its target capital expenditure range to $14-18 billion a year out to 2030 (2) , from the previous range of $14-16 billion. All investments will remain subject to disciplined application of bp’s balanced investment and returns criteria. 

bp expects this additional incremental investment to deliver around $3 billion additional group EBITDA in 2025 and is aiming for that to grow to $5-6 billion in 2030. This would comprise an additional $2 billion from the TGEs and $3-4 billon from oil and gas projects in 2030. bp has also raised its oil and gas price and refining margin assumptions (3) . 

As a result of both factors, bp is now targeting group EBITDA of $46-49 billion in 2025 and is aiming for $51-56 billion in 2030, in a $70/barrel (2021 real) oil price environment. These compare to its previous target and aim, from May 2022, of around $38 billion in 2025 and $39-46 billion in 2030 at $60/barrel (2020 real).  

Performing while transforming

After setting out its new purpose, net zero ambition, structure and strategy in 2020, bp’s focus is now on delivering its transformation into an Integrated Energy Company.  

Bernard Looney: “Throughout 2022, bp continued to focus on delivery of our Integrated Energy Company strategy. We are helping provide the energy the world needs today and – at the same time – investing with discipline into our transition and the energy transition – as demonstrated by the Archaea Energy acquisition. We are strengthening bp, with our strongest upstream plant reliability on record and our lowest production costs in 16 years, helping to generate strong returns and reducing debt for the 11th quarter in a row. Importantly, we are delivering for our shareholders – with buybacks and a growing dividend. This is exactly what we said we would do and will continue to do – performing while transforming.”

In 2022, bp delivered EBITDA of $61 billion, operating cash flow of $41 billion, including around $7 billion working capital build, and reported underlying replacement cost profit of $28 billion. 

It continued to strengthen its finances, reducing net debt by $9.2 billion over the year to $21.4 billion – the lowest for over nine years. ROACE for the year was 30.5%. For 2022, bp incurred a total tax charge of $15.1 billion on an underlying basis, representing an effective tax rate of 34%. 

bp also delivered sector-leading distributions for its shareholders in 2022. bp today announced a 10% increase in the quarterly dividend for the fourth quarter of 2022, to 6.61c per ordinary share. Together with the 10% rise in the second quarter of 2022, this represents 21% growth in the dividend compared to the fourth quarter of 2021. 

With plans for $2.75 billion share buybacks from fourth quarter surplus cash flow announced today, bp has also announced a total of $11.25 billion share buybacks from 2022 surplus cash flow.

Through 2022, bp also continued to deliver its transformation, notably with the acquisition of biogas producer Archaea Energy, forming Azule Energy with Eni in Angola, and adding significant potential opportunities for hydrogen, including in Australia, Abu Dhabi, Egypt, Oman and Mauritania. 

In 2022, it invested $4.9 billion, around 30% of its total $16.3 billion capital expenditure, into its transition growth engines - including the acquisition of Archaea Energy. This compares to around 3% in 2019. bp continues to expect this proportion to grow to around 50% in 2030. 

Leaning further into bp's strategy

More investment in bp’s transition.

bp aims to increase investment in its TGEs by up to $1 billion a year on average, or up to a cumulative additional $8 billion to 2030. bp’s investment in its TGEs is now expected to reach $7-9 billion a year in 2030 (4) - with cumulative investment over 2023-2030 around $55-65 billion.

bp aims to invest around half of this cumulative total in the TGEs where bp has established businesses, capabilities and track record – in bioenergy, and in convenience and EV charging; the other half in hydrogen and renewables & power.

bp expects to achieve returns of greater than 15% from bioenergy, and from convenience and EV charging combined, and double digit returns from hydrogen. It expects 6-8% unlevered returns in renewables. 

Earnings from bp’s TGEs are expected to grow as a result of these changes. bp now expects the TGEs to deliver $3-4 billion EBITDA in 2025, and is aiming for $10-12 billion in 2030, comprising: over $4 billion from bioenergy; over $4 billion from convenience and EV charging; and $2-3 billion from hydrogen and renewables & power.

Bernard Looney : “We will increase our focus on the transition growth engines able to deliver nearer-term solutions – like EV chargers and sustainable aviation fuels – that can help people and businesses decarbonise sooner. And we will continue to build our hydrogen and renewables and power businesses for the longer term, based around projects where bp’s integrated approach can create significant additional value.”

Bioenergy: bp plans to grow its established bioenergy businesses materially. It plans to increase its supply of biogas six-fold, underpinned by Archaea Energy, to up to 70,000 barrels of oil equivalent a day in 2030. bp aims to increase biofuel production to around 100,000 barrels a day by 2030, supported by five major new projects at bp refineries, focused on production of sustainable aviation fuel.  

Convenience and EV charging: expansion of bp’s strategic convenience site networks is expected to drive growth in bp’s convenience gross margin by around 10% a year to 2030. Together with EV charging they are expected to help grow bp’s ability to offer lower carbon transport solutions for customers. Today bp has 22,000 EV charge points and aims for more than 100,000 by 2030 - around 90% rapid or ultra-fast. It is developing leading positions in key geographies worldwide, underpinned by partnerships with major fleet operators. 

Hydrogen and renewables & power: through this decade bp aims to establish the foundations of a material business for the future. bp aims to build a leading position globally in hydrogen, initially supplying its own refineries, scaling up to meet growing customer demand and in parallel, as markets develop, developing global export hubs for hydrogen and its derivatives. By 2030 bp aims to produce between 0.5-0.7 million tonnes a year of primarily green hydrogen, also pursuing selected blue hydrogen opportunities. 

In renewables & power , bp will focus investment on opportunities where it can create integration value and enhance returns. bp aims to build a portfolio – including a global position in offshore wind - in support of green hydrogen, e-fuels, EV charging and power trading, together with continued growth in its self-funded solar joint venture Lightsource bp. bp remains on track to deliver its aim of having developed 50GW renewable power to FID by 2030; of this it aims to have around 10GW net installed capacity – largely operated. bp also expects to have assets under construction and for Lightsource bp to contribute materially. 

More investment in today’s energy system:

bp also aims to increase investment into resilient high-quality oil and gas projects - again by an average of up to $1 billion a year, or up to a cumulative $8 billion to 2030. The investment will help to meet near-term demand for secure supplies of oil and gas, generating additional earnings that can further strengthen bp and support investment in its transition. 

The incremental investment to 2025 will target shorter-term, fast-payback projects that maximise value and can deliver rapidly, with minimal new infrastructure. While bp will continue to high-grade its global oil and gas portfolio, due to improving operational reliability and commerciality over the past four years it also now anticipates retaining some oil and gas assets longer than previously envisaged.

Bernard Looney: “We need continuing near-term investment into today’s energy system – which depends on oil and gas – to meet today’s demands and to make sure the transition is an orderly one. We have high-quality options throughout our portfolio, allowing us to choose only the best. We will prioritise projects where we can deliver quickly, at low cost, using our existing infrastructure, allowing us to minimise additional emissions and maximise both value and our contribution to energy security and affordability.”

As a result of these changes, bp anticipates its oil and gas production will be around 2.3 million barrels of oil equivalent a day (mmboe/d) in 2025 and aims for it to be around 2.0 mmboe/d in 2030. This 2030 production would be around 25% lower than bp’s production in 2019, excluding production from Rosneft, compared to bp’s previous expectation of a reduction of around 40%. bp correspondingly now aims for a fall of 20% to 30% in emissions from the carbon in its oil and gas production (5) in 2030 compared to a 2019 baseline, lower than the previous aim of 35-40%. 

From the first quarter of 2022, bp has no longer reported oil and gas production from Russia. With the removal of this Russian production, bp’s full year average reported production in 2022 was around 40% lower than the total production bp reported in 2019. 

Delivering for shareholders 

bp remains focused on the disciplined delivery of its financial frame. Through the financial frame and bp’s business plans out to 2025, in a $70 per barrel price environment, bp aims to offer: 

• Accelerating growth : with a compound average growth rate for EBIDA per share of over 12% between 2H 2019/1H2020 to 2025 at $70 per barrel 2021 real.
• Competitive returns : expecting to achieve a return on average capital employed (ROACE) of over 18% in both 2025 and 2030 at $70 per barrel 2021 real.
• Debt reduction : intending to allocate around 40% of 2023 surplus cash flow to further strengthening the balance sheet.
• Dividends: bp expects to maintain a resilient cash balance point of around $40 per barrel Brent oil price, with $11 per barrel refining marker margin and $3 per million BTU Henry Hub gas price. bp continues to see the capacity to continue to grow its dividend per ordinary share by around 4% a year at around $60/barrel, subject to the board’s discretion (6).  
• Buybacks (6) : bp is committed to allocating 60% of 2023 surplus cash flow to share buybacks, expecting a buyback of around $4 billion a year - at around $60 a barrel, at the lower end of its capital expenditure range and subject to maintaining a strong investment grade credit rating. The buyback commitment offers leverage to higher price environments.  
• This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of BP p.l.c. is Ben Mathews, Company Secretary.
• bp’s fourth quarter and full year 2022 results can be seen at www.bp.com/results .

Notes to editors

• Compared to aims set out by bp in February 2022.
• Capital expenditure in 2023 planned to be in range $16-18 billion.
• Assumptions to 2030, all 2021 real: Brent oil price $70/barrel; Henry Hub gas price $4/million Btu; bp refining marker margin, $14/barrel. See also note 1 of bp 4Q and full year results 2022. 
• bp’s investment in TGEs is expected to be $6-8 billion in 2025.
• bp’s aim to reach net zero* CO2 emissions, in accordance with bp’s Aim 2, from the carbon in our oil and gas production, in respect of the estimated CO2 emissions from the combustion of upstream production of crude oil, natural gas and natural gas liquids on a bp equity share basis based on bp’s net share of production, excluding bp’s share of Rosneft production and assuming that all produced volumes undergo full stoichiometric combustion to CO2. Aim 2 is bp’s Scope 3 aim and relates to Scope 3, category 11 emissions.  Any interim target or aim in respect of bp’s Aim 2 is defined in terms of absolute reductions relative to the baseline year of 2019.
• In setting the dividend per ordinary share and the buyback each quarter the board will take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating.
• For the purposes of this announcement, each of the following terms has the meaning given to it in bp’s fourth quarter and full year 2022 financial results announcement: operating cash flow; net debt; ROACE; upstream plant reliability; EV charge points; surplus cash flow; cash balance point; capital expenditure; refining marker margin (RMM); strategic convenience sites and underlying replacement cost (RC) profit.
• For the purposes of this announcement, each of the following terms has the meaning given to it in the bp Annual Report and Form 20-F 2021: convenience gross margin.
• EBIDA: has the meaning given to the term Adjusted EBIDA in bp’s fourth quarter and full year 2022 financial results announcement.
• EBIDA per share: share buybacks are modelled across a range of share prices in this calculation and EBIDA is after impact of planned divestments. 
• EBITDA: has the meaning given to the term Adjusted EBITDA in bp’s fourth quarter and full year 2022 financial results announcement.
• Net zero: References to net zero for bp in the context of our ambition and Aims 1, 2 and 3 mean achieving a balance between (a) the relevant Scope 1 and 2 emissions (for Aim 1), Scope 3 emissions (for Aim 2) or product lifecycle emissions (for Aim 3), and (b) the aggregate of applicable deductions from qualifying activities such as sinks under our methodology at the applicable time.
• Rapid or ultra-fast: rapid charging ≥50kW and ultra-fast charging ≥150kW.

Further information

bp press office, London:  [email protected]

Cautionary statement

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement: The discussion in this results announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’, ‘focus on’ or similar expressions. 

In particular, the following, among other statements, are all forward looking in nature: plans and expectations regarding bp’s performance, earnings, returns, capital expenditure, targets and market position through 2025 and/or 2030; expectations related to oil and gas prices and refining margins; expectations regarding bp’s plans to invest up to an additional $8 billion in its transition growth engines and up to additional $8 billion in oil and gas projects, both by 2030; plans and expectations related to earnings growth, including the aim of group EBITDA of $51-56 billion in 2030 at oil prices of $70 per barrel in 2021 real terms; plans and expectations related to bp’s target of growing EBIDA per share at over 12% compound average growth rate through 2025, and growing ROACE to over 18% in both 2025 and 2030; plans, expectations and assumptions regarding oil and gas demand, supply and prices; plans and expectations regarding bp’s transition growth engines of bioenergy, convenience, EV charging, hydrogen and renewables and power, including plans and expectations related to allocation of capital expenditure, returns and EBITDA growth; expectations regarding earnings from incremental investments including the delivery of $5-6 billion of additional EBITDA in 2030; plans and expectations regarding the growth of bp’s bioenergy business; plans and expectations related to the expansion of strategic convenience site networks and EV charge points; plans and expectations regarding hydrogen, including aims to establish a future material business and build a leading global position, customer demand, the development of global export hubs, and aims relating to green and blue hydrogen; plans and expectations in renewables and power, including the target of developing 50 gigawatts to FID and having 10 gigawatts net installed capacity mainly bp operated, both by 2030 and Lightsource bp’s contribution to bp’s targets and aims; plans and expectations regarding investment into resilient high-quality oil and gas projects; bp’s plans to continue to high-grade its global oil and gas portfolio; plans and expectations regarding the retention of certain oil and gas assets; plans and expectations relating to bp’s future oil and gas production; plans and expectations relating to taxes, including the effective tax rate; plans regarding future quarterly dividends and the amount and timing of share buybacks;  plans and expectations regarding the allocation of surplus cash flow and cash balance point; and plans and expectations relating to the reduction of debt and maintenance of an investment grade credit rating.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. 

Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, the impact of COVID-19, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps or actions taken by any competent authorities or any other relevant persons may impact Rosneft’s business or outlook, bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and other factors discussed elsewhere in this report, as well as those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F 2021 as filed with the US Securities and Exchange Commission and those factors discussed under “Principal risks and uncertainties” in bp’s Report on Form 6-K regarding results for the six-month period ended 30 June 2022 as filed with the US Securities and Exchange Commission.

Also on bp.com

2022 full year and 4q financial results, results and webcast, newsletter sign-up.

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

Download Template

One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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Banca Popolare di Sondrio S.p.A

It0000784196.

• Banca Popolare di Sondrio S p A : 2022-2025 Group’s Business Plan

_________________________________________________________________________________________________________________

PRESS RELEASE

APPROVAL OF THE 2022 - 2025 BUSINESS PLAN

THE BUSINESS PLAN CONFIRMS BANCA POPOLARE DI SONDRIO'S NATURE: AS A "BANK ACTING AS A BANK", DETERMINED TO BE CLOSE TO ITS CUSTOMERS AND TO GROW IN ASSET MANAGEMENT AND IN BANCASSURANCE, WITH A COMMITMENT TO INNOVATE IN THE DIGITAL SPACE. OVER 550 €MM IN DIVIDENDS OVER THE NEXT FOUR YEARS, WITH ANNUAL PAYOUT RATIO AT 50%.

SIGNIFICANT AND SUSTAINABLE VALUE CREATION

• Net profit growing to 323 €MM in 2025
• ROE increasing to 9.2% in 2025

INCREASING SHAREHOLDER DISTRIBUTIONS

• Over 550 €MM in expected dividends over the course of the business plan
• 50% payout ratio every year

SUSTAINED CORE PROFITABILITY

• Core revenues increasing to 1.1 €BN in 2025
• Interest margin growing to 667 €MM in 2025, with a 6% 2021-2025 CAGR
• Net commissions growing to 443 €MM, with a 5.5% 2021-2025 CAGR

CREDIT AS THE HEART OF BPS'S VALUE PROPOSITION;

A NEW PUSH IN WEALTH MANAGEMENT AND BANCASSURANCE

• Customer loans increasing to 35.9 €BN in 2025
• Assets under management and insurance assets at 13.8 €BN in 2025 with a +12% 2021-2025 CAGR
• Insurance premiums increasing at +11% 2021-2025 CAGR

SOLID CAPITAL BASE AND ROBUST LIQUIDITY POSITION

• 15.6% CET 1 ratio at the end of 2025 and above 15% in each business plan year
• Liquidity Coverage Ratio above 140% in each business plan year
• Net Stable Funding Ratio above 125% in each business plan year

CONTINUOUS DERISKING ACTIVITY

• NPL ratio decreasing to 3.8% in 2025
• Cost of risk at 47 bps in 2025

SIGNIFICANT INVESTMENTS IN IT DEVELOPMENT

• Investments in employees and digitalization, while containing overall costs at 619 €MM in 2025
• Cost/income ratio decreasing to 51.8% in 2025

FOCUS ON ESG

• Integration of ESG factors in credit processes and approval of a responsible credit policy
• Identification of the path to carbon neutrality and portfolio alignment
• Development of ESG products and services

"I am proud to present our first Business Plan after transforming into a S.p.A. at the end of 2021. Since our foundation in Sondrio in 1871, we have been one of the first cooperative banks in Italy. Our mission is to grow with our customers and our employees, beyond the limits of a traditional Local Bank, with accuracy, availability for our customers, and closeness to our communities, preserving our identity while always changing and innovating", said dott. Mario Alberto Pedranzini, Banca Popolare di

Sondrio's CEO.

"Over the last ten years, characterized by the well-known contextual complexities, contrary to the market average, our operating margin has largely covered and exceeded our credit losses, and our capitalization is market-leading. We are the Italian Bank with the most organic growth, investing in our people and in our network.

The "Next Step" 2022-2025 Business Plan highlights the prospects of a bank acting as a bank, focussed on our distinctive areas, and committed to growing in key segments including Wealth Management and Bancassurance, where we deem to have further potential for growth, and evolving our relationships with consumers digitally. Our Bank foresees the distribution of over half a billion in dividends, with a 50% payout every year."

Today, at Palazzo Mezzanotte in Milan, a presentation will be held at 11:00 AM to showcase the Plan's contents.

The event can be streamed via video/audio at the following link: https://channel.royalcast.com/popsoit/#!/popsoit/20220629_1

The supporting documentation will be available before the presentation starts in the

Investor Relations page on the Bank's website: https://istituzionale.popso.it/it/investor-relations/presentazioni-finanziarie

2022 - 2025 strategic guidelines

FOCUS ON DISTINCTIVE AREAS

• Consolidation of customer loans: +16% from 2021 to 2025
• Unique positioning in international operations and services, revenue diversification thanks to BPS Suisse (ca. 9% of the Group's net profit), important contribution of treasury services offered to Institutional Entities (1,800 customers in 2025)
• Stronger synergies between product factories for a 360 degree customer development: Factorit turnover expected at 19.2 €BN in 2025 (+6% 2021-2025 CAGR)
• Quick set up of new operations and development of the ability to intercept new current and prospective demand flows (e.g. tax credits)

QUALIFIED GROWTH IN KEY AREAS

• Wealth management for high potential customers: +12% 2021-2025 CAGR for wealth management/insurance volumes
• Strengthening of the current Bancassurance model, with customer premiums increasing by over 50%
• Reference partner for customers to capitalise on PNRR-related opportunities
• Contribution of payments business to revenue diversification: ca. +10% 2021- 2025 CAGR in transaction volumes

DIGITAL EVOLUTION OF CUSTOMER RELATIONS

• Enhancement of digital service access points, centrality of the «universal» branch strengthened by specialized skills
• Process digitalization and robotization, freeing up time for higher value-added commercial activities
• Growth of the fully digital "Virtual Unit" channel (+36,000 customers)
• Strengthened multi-channel and «phygital» model: Digital Hub for the setup of fully digital sales processes, commercial action and remote assistance, new products and services from the «open» ecosystem
• Upgrade of the tech infrastructure and digital reskilling of employees

TRANSVERSAL ELEMENTS

• Corporate identity and skills strengthening through training and incentives (130,000 annual training hours and improvement of performance management systems, review of compensation policies)
• Sustainability is at the heart of the Group's operations: Integration of ESG factors into business and operations, through the definition of quantitative targets by the end of 2022 and their monitoring via selected performance indicators selected among international best practices.

BUSINESS PLAN'S MAIN FINANCIAL TARGETS

This is an excerpt of the original content. To continue reading it, access the original document here .

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Banca Popolare di Sondrio Scpa published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 29 June 2022 05:46:09 UTC .

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The Banking Group in the centre of the Alps

One of the first cooperative banks to be founded in Italy, inspired by the cooperative credit model advocated by Luigi Luzzatti, Banca Popolare di Sondrio has been serving the territories in which it operates since its foundation in Valtellina in 1871.

Over time, the range of activities has been extended to the whole country, while maintaining strong links with the area of origin where the Head Office and the Central Departments are still located.

Following the approval of the corporate transformation resolved by the Extraordinary Shareholders' Meeting of 29 December 2021, the Bank operates as a joint-stock company and heads a banking group with over 150,000 shareholders, more than 500 branches and over 900,000 customers.

Banca Popolare di Sondrio boasts a long history of growth, values and culture, based on mutual trust and nourished by a passion for work, constant attention to customers and the evolution of their needs. On the strength of its solid founding principles that have inspired a balanced and profitable business model, the bank looks to the future with confidence and works with determination to continue to carry out its activities effectively, to the benefit of customers and all stakeholders.

Key numbers

as of 31/03/2024

BANCA POPOLARE DI SONDRIO

Parent company of the homonymous Group, Banca Popolare di Sondrio offers its customers (families, professionals, small and large companies, public institutions, etc.) services that will satisfy their every banking, financial or insurance need.

BNT BANCA SPA

BNT Banca SpA, a company that supports the farming and agri-food and serves households and individuals with loans against the assignment of one-fifth of salary or pension and delegation of payment. BNT also includes Prestinuova spa, a financial intermediary based in Rome that provides loans repayable via the assignment of one fifth of salary/pension.

BPS (SUISSE) SA

Swiss bank wholly owned by the Parent Company, formed in Lugano on 3 May 1995, with 20 operational units today – counting branches, agencies and desks – in Switzerland and abroad. Plus, of course, the Direct Banking virtual branch. The broad and diversified activities of BPS (SUISSE) cover all the sectors typical of a universal bank, operating in accordance with the philosophy of the Group: customer-centric banking.

FACTORIT SPA

Factorit SpA, which factors and manages the collection of trade receivables on a with- or without-recourse basis; it also grants advances on such receivables.

SINERGIA SECONDA SRL

Sinergia Seconda Srl, active in the property sector, which mainly provides operational support for the activities of the Bank and other members of the Banking Group.

POPSO COVERED BOND SRL

Popso Covered Bond srl, a SPV involved in the issue of covered bonds.

PrestiNuova srl – Agenzia in Attività Finanziaria

PrestiNuova srl - Agenzia in Attività Finanziaria, a wholly owned subsidiary of Banca della Nuova Terra spa, will act as an agency in financial activities for the public, focusing mainly on loans repayable by salary and/or pension assignment.

Geographic footprint

Our branches are present in eight regions of Northern Italy, in the Rome area and in the city of Napoli in Campania.

All our contact details at you disposal

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