75 slides from Societe Generale S.a. Class A's earnings presentation, Feb 21, 2008
Slide 1: Full-Year and Fourth Quarter 2007 Results
21 / 02 / 2008 FULL-YEAR AND FOURTH QUARTER 2007 RESULTS
Slide 2: Disclaimer
Disclaimer The following presentation contains a number of forward-looking statements relating to Société Générale’s targets and strategy. These forecasts are based on a series of assumptions, both general and specific. As a result, there is a risk that these projections will not be met. Readers are
Slide 3: Group results; Results of core businesses; Conclusion
Group results Results of core businesses French Networks International Retail Banking Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2007 RESULTS 21 / 02 / 2008 3
Slide 4: Highlights of 2007
SOCIETE GENERALE GROUP Highlights of 2007 Very good performances in Retail Banking, Financial Services, Private Banking and Securities Services Impact of the US residential mortgage crisis on Corporate & Investment Banking: write-downs of EUR -2,572m Impact of the liquidity crisis on Asset Man
Slide 5: Net income of EUR 947m, with solid revenue resilience
SOCIETE GENERALE GROUP Net income of EUR 947m, with solid revenue resilience NBI: -2.8%* vs. 2006 In EUR m FY 06 FY 07 Change 07/06 NBI excluding write-downs linked to the US Net banking income 22,417 21,923 -2.2% -2.8%* residential mortgage crisis: +8.9%* vs. 2006 Operating expenses (13,703) (14,
Slide 6: A foundation of solid activities and strong growth drivers
SOCIETE GENERALE GROUP A foundation of solid activities and strong growth drivers Change 2007 / 2006 Group Robust performance of the French NBI (in EUR bn) (-2.8%*) Networks +8.5% /yr 21.9 Impact of the US residential 22.4 mortgage crisis EUR: -2.6bn Strong progression in International 19.2 21.9
Slide 7: Group C/I ratio: 65.3% (vs. 61.1% in 2006)
SOCIETE GENERALE GROUP Group C/I ratio: 65.3% (vs. 61.1% in 2006) Increase in the C/I ratio at Corporate and C/I ratio Investment Banking and Asset Management as a result of the financial 72.6% 73.0% 72.2% crisis 70.0% 68.4% 68,4% 67.5% Corporate & Investment Banking: 75.7% 65.3% (vs. 54.7% exclud
Slide 8: Commercial cost of risk: 25bp (stable vs. 2006)
SOCIETE GENERALE GROUP Commercial cost of risk: 25bp (stable vs. 2006) French Networks Cost of risk: 28bp (vs. 27bp in 2006) Average cost of risk (in bp) International Retail Banking 79 Low cost of risk: 44bp (vs. 55bp in 2006) 61 55 46 44 Financial Services 33 27 28 Cost of risk: 89bp (vs. 73
Slide 9: Group Q4 07 results
SOCIETE GENERALE GROUP Group Q4 07 results In EUR m Q4 06 Q4 07 Change Q4/Q4 NBI: -32.6%* vs. Q4 06 Net banking income 5,671 3,880 -31.6% -32.6%* Write-downs linked to the US residential Operating expenses (3,589) (3,416) -4.8% -5.0%* mortgage crisis: EUR -2.25bn Gross operating income 2,082 464 -
Slide 10: Quarterly revenues
SOCIETE GENERALE GROUP Quarterly revenues Change NBI (in EUR bn) Q4 07 / Q4 06 Very good performances in retail Group businesses -32.6%* French Networks: +4.8% vs. Q4 06 excl. PEL/CEL 5.7 International Retail Banking: +19.2%* 5.1 vs. Q4 06 1.7 3.9 Financial Services: +15.6%* vs. Q4 06 GIMS 1.4 (-7
Slide 11: Commercial cost of risk: 28bp (vs. 38bp in Q4 06)
SOCIETE GENERALE GROUP Commercial cost of risk: 28bp (vs. 38bp in Q4 06) French Networks Net allocation to provisions (in EUR m) 35bp (vs. 34bp in Q4 06) 231 192 186 226 301 International Retail Banking 46bp (vs. 65bp in Q4 06) 33 GIMS Financial Services 97bp (vs. 94bp in Q4 06) 9 102 Financia
Slide 12: Group results; Results of core businesses; Conclusion
Group results Results of core businesses French Networks International Retail Banking Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2007 RESULTS 21 / 02 / 2008 12
Slide 13: French Networks
FRENCH NETWORKS 2007 2007 NBI: NBI: +4.8%(a) +4.8% (a) vs. vs. 2006 2006 excl excl.. PEL/CEL PEL/CEL +3.3% 32% +3.3% vs. vs. 2006 2006 of Group NBI 2007 2007 net net income: income: EUR EUR 11,375m ,375m (+2.3% (+2.3% vs. vs. 2006) 2006) 2007 2007 ROE ROE after after tax tax:: 21.2% (a) 21.2%(a) exc
Slide 14: Business development
FRENCH NETWORKS Business development Individual customers Individual and business customers: steady franchise growth Further growth in customer base: Change +160,400 personal current accounts in 2007 since 2001 (+2.6% vs. end 2006) 200 Outstanding Growth in outstanding savings +91% life- life-insu
Slide 15: Strong increase in revenues
FRENCH NETWORKS Strong increase in revenues NBI: +4.8%(a) vs. 2006 excl. PEL/CEL 6,295 6,833 7,058 NBI in EUR m NBI: +3.3% vs. 2006, after EUR 53m reversal of PEL/CEL provisions in 2007 (vs. EUR 183m in Financial 867 2006) and Euronext capital gain of EUR 36m 821 commissions 748 Commissions: +8.
Slide 16: Ongoing profitable growth
FRENCH NETWORKS Ongoing profitable growth Number of individual current accounts (in millions) High potential customer base in 6.1 6.2 both networks 5.9 5.6 5.7 +2.6% High market share in the most promising regions 5.5 +2.9% 5.3 +3.1% Mass affluent customers: a significant opportunity for 5.2 +2.2%
Slide 17: Excellent financial results
FRENCH NETWORKS Excellent financial results 2007 NBI excl. PEL/CEL: +4.8%(a) vs. 2006 Operating expenses: +2.6% vs. 2006 ª C/I ratio excl. PEL/CEL: 65.5%(a) (vs. 66.9% in 2006) Change Change In EUR m FY 06 FY 07 Q4 07 07/06 Q4/Q4 ª GOI excl. PEL/CEL: +9.2%(a) vs. 2006 Net banking income 6,833 7,05
Slide 18: International Retail Banking
INTERNATIONAL RETAIL BANKING 2007 2007 NBI: NBI: +23.6% +23.6% vs. vs. 2006; 2006; +17.1% +17.1% like -for-like like-for-like 2007 2007 net net income: income: EUR EUR 686m 686m (+45.6% (+45.6% vs. vs. 2006) 2006) 2007 2007 ROE ROE after after tax: tax: 36.9% 36.9% 16% of Group NBI Individual Indivi
Slide 19: Ongoing development in high-potential regions
INTERNATIONAL RETAIL BANKING Ongoing development in 3 high-potential regions Central & Eastern Europe 2008 GDP: +4.4% vs. 2007 Population: 84 million inhabitants No. 1 banking network in Romania No. 3 bank in the Czech Republic Russia 2008 GDP: +6.7% vs. 2007 Population: 142 million inhabitants Rosb
Slide 20: Further strong development
INTERNATIONAL RETAIL BANKING Further strong development Number of individual customers** Sub-Saharan (in millions) Africa & French 8.8 overseas 7.8 1.0 Robust sales performance 1.0 territories 5.8 1.6 Mediterranean +744,000 individual customers at constant 1.3 Basin 1.0 structure vs. end-2006 (+9.
Slide 21: Exercise of the call option on Rosbank
INTERNATIONAL RETAIL BANKING Exercise of the call option on Rosbank Banking penetration Russia: a fast-growing banking market in Russia (as a % of GDP) Total 37% deposits Outstanding deposits: +42% per year between 2003 and (including 2006 31% 31% public) 26% 26% Corporate loans: +36% per year bet
Slide 22: Increase in results
INTERNATIONAL RETAIL BANKING Increase in results 2007 NBI: +17.1%* vs. 2006 Operating expenses: +14.2%* vs. 2006 (incl. +5.9%* vs. 2006 related Change to network development costs) In EUR m FY 06 FY 07 Change 07/06 Q4 07 Q4/Q4 ª GOI: +21.3%* vs. 2006 Net banking income 2,786 3,444 +23.6% +17.1%* 9
Slide 23: Financial Services
FINANCIAL SERVICES 2007 2007 NBI: NBI: +18.1% +18.1% vs. vs. 2006; 2006; +15.1% +15.1% like -for-like like-for-like 2007 2007 net net income: income: EUR EUR 600m 600m (+15.2% (+15.2% vs. vs. 2006) 2006) 2007 2007 ROE ROE after after tax tax:: 16.1% 16.1% Individual Individual customers: customers:
Slide 24: Strong development of consumer credit
FINANCIAL SERVICES Strong development of consumer credit A growing business Consumer credit NBI New lending**: EUR 11.0bn (+16.9%* vs. 2006) (in EUR bn) Outstanding at period-end**: EUR 18.3bn (+15.4%* vs. 2006) 1.3 A solid base in France, Italy and Germany 10% Others Strong organic investment
Slide 25: Brazil: a high-potential consumer credit market
FINANCIAL SERVICES Brazil: a high-potential consumer credit market is present nationwide, A rapidly growing market covers the Sao Paolo and Rio de Janeiro areas 2008 GDP*: +4.5% vs. 2007, inflation under control 192 million inhabitants Consumer credit market: EUR 80bn** (+26% vs. 2006 in Real) A
Slide 26: Business finance and services: strong positions
FINANCIAL SERVICES Business finance and services: strong positions NBI from business finance and services Operational vehicle leasing and fleet (in EURbn) management 1.1 ALD Automotive, the European No. 2, is present in 1.0 39 countries 0.9 Ongoing development 0.8 Operational vehicle • Strengtheni
Slide 27: Increase in results
FINANCIAL SERVICES Increase in results 2007 Specialised Financing • NBI: +14.4%* vs. 2006 • Operating expenses: +15.1%* vs. 2006 Change In EUR m FY 06 FY 07 Change 07/06 Q4 07 • ROE after tax: 16.6% Q4/Q4 Life Insurance Net banking income 2,404 2,838 +18.1% +15.1%* 798 +15.6%* • New inflows: EUR 8
Slide 28: Global Investment Management and Services
GLOBAL INVESTMENT MANAGEMENT AND SERVICES 2007 2007 NBI: NBI: +17.1% +17.1% vs. vs. 2006; +7.0%(a) 2006; +7.0% (a) like -for-like like-for-like 2007 2007 net net income income:: 17% EUR EUR 652m 652m of Group NBI 2007 2007 net net inflows: inflows: EUR EUR 20.1bn 20.1bn (vs. (vs. EUR EUR 41.9bn 41.9
Slide 29: Asset management significantly impacted by the crisis
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Asset management significantly impacted by the crisis Assets under management** Net outflows in Q4 07: EUR -8.2bn (in EUR bn) Outflow from dynamic money market funds: EUR -6.3bn CDO outflow: EUR -2.6bn +11.3 +7.2 -15.4 +0.6 Net inflows in 2007: EUR 11.3b
Slide 30: Excellent performance in Private Banking
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Excellent performance in Private Banking Assets under management High net new money in 2007: EUR 8.8bn (in EUR bn) o.w. net new money in Q4 07: EUR 2.1bn +8.8 +2.3 -2.9 +0.9 i.e. 13% of AuM year-to-year Excellent commercial performance in all geographic Ne
Slide 31: Business momentum in Securities Services
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Business momentum in Securities Services Securities Services for Institutional Investors and Fund Administration Assets under custody (in EUR bn) No. 3 European custodian Assets under custody: +14.2% vs. end-2006 2,583 2,262 Assets under administration: +2
Slide 32: Mixed performance
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Mixed performance Change 2007 In EUR m FY 06 FY 07 Change 07/06 Q4 07 Q4/Q4 NBI: +7.0%*(a) vs. 2006 Net banking income 3,195 3,741 +17.1% +12.3%* 852 - 7.3%* -12.6% - 14.6%* - 58.0%* C/I ratio: 75.7%(a) o.w. Asset Management 1,281 1,119 191 o.w. Private Ba
Slide 33: Corporate & Investment Banking
CORPORATE & INVESTMENT BANKING 21% 2007 2007 NBI: NBI: of Group NBI --34.1% 34.1% vs. vs. 2006 2006 excl excl.. Cowen Cowen;; --32.8% 32.8% like -for-like like-for-like 2007 2007 net net income income:: EUR EUR --2,221m 2,221m 2007 2007 ROE ROE after after tax: tax: NM NM 2007 NBI: EUR 4,522m FULL-Y
Slide 34: Sharp drop in revenues linked to the crisis in the US
CORPORATE AND INVESTMENT BANKING Sharp drop in revenues linked to the crisis in the US NBI** by division (in EUR m) NBI: EUR 4,522m (-32.8%* vs. 2006) 6,860 4,522 Solid contribution from the Financing & Advisory 2,252 businesses 1,859 Financing & 1,559 Advisory Dynamic client-driven activity in th
Slide 35: Equities: strong client-based activity
CORPORATE AND INVESTMENT BANKING Equities: strong client-based activity Breakdown of 2007 NBI by business NBI: EUR 3,548m (+18.4%* vs. 2006) Q4 07 NBI : EUR 757m (+18.1%* vs. Q4 06) “Equity Derivatives House of the Year**” Arbitrage and Structured Dynamic client-driven activity: products volatil
Slide 36: Fixed Income, Currencies and Commodities: revenues impacted by the crisis
CORPORATE AND INVESTMENT BANKING Fixed Income, Currencies and Commodities: revenues impacted by the crisis in the US Quarterly revenues (in EUR m) 2007 NBI: EUR -885m (vs. EUR 2,252m in 2006) 594 -2,099 240 89 Others* Q4 07 NBI: EUR -2,099m (vs. EUR 594m in Q4 06) 354 355 Client NBI Strong resil
Slide 37: Impacts linked to the US residential mortgage crisis and monoline exposure
CORPORATE AND INVESTMENT BANKING Impacts linked to the US residential mortgage crisis and counterparty risk exposure to monoline insurers Total impacts linked to the US residential mortgage crisis and counterparty risk exposure to monolines: EUR -2,572m o.w.: CDOs: EUR -1,250m in 2007 (o.w. EUR -1
Slide 38: Financing and Advisory: a solid contribution
CORPORATE AND INVESTMENT BANKING Financing and Advisory: a solid contribution Quarterly revenues (in EUR m) 439 681 NBI: EUR 1,859m (+21.0%* vs. 2006) 2007 NBI: -5.2% vs. 2006 excl. MtM of CDS 462 Client NBI Q4 07 NBI: -1.9% vs. Q4 06 excl. MtM of CDS 495 Recognised positions Others** Best Commo
Slide 39: Results
CORPORATE AND INVESTMENT BANKING Results 2007 Change In EUR m** FY 06 FY 07 Change 07/06 Q4 07 NBI: -32.8%* vs. 2006 Q4/Q4 Net banking income 6,860 4,522 -34.1% -32.8%* (661) NM - 140.2%* • Client-driven NBI: +14.5% vs. 2006 o.w. Financing & Advisory 1,559 1,859 +19.2% +21.0%* 681 +58.4%* o.w. Fix
Slide 40: An exceptional fraud
CORPORATE AND INVESTMENT BANKING An exceptional fraud Uncovering and unwinding of an exceptional fraud in 2008 A very high cost Not a loss on authorised market activities supervised through risk models Tighter IT security and access controls to Information Systems Independent supervision o
Slide 41: Group results; Results of core businesses; Conclusion
Group results Results of core businesses French Networks International Retail Banking Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2007 RESULTS 21 / 02 / 2008 41
Slide 42: Net income of EUR 947m in 2007
SOCIETE GENERALE GROUP Net income of EUR 947m in 2007 Net income (in EUR m) 2006 2007 ROE 5,221 -81.9% ROE after tax after tax 48% 2,340 947 652 GIMS 577 Financial Services 16% 600 16% 521 686 International 37% 36% 471 Retail Banking 22%* 1,344 1,375 French Networks 21%* (32) (145) Corporate Centre
Slide 43: Conclusion
SOCIETE GENERALE GROUP Conclusion 2007, a difficult year The solid performance by the French Networks and the increased stature of the growth drivers ensured the Group’s resilience Financial measures taken to strengthen the financial structure and ensure the Group’s continued growth Ratio Tier
Slide 44: Société Générale Group: GOI, EPS, Dividend
SOCIETE GENERALE GROUP Gross operating income EPS Dividend (in EUR bn) (in EUR) (in EUR) 5.20 12.33 8.7 4.47 7.6 10.70 7.0 7.98 3.28 5.3 5.1 6.74 6.03 2.48 4.1 4.0 3.8 5.31 2.09 2.09 2.09 4.87 3.1 1.54 3.38 0.90* 1.98 1999 2000 2001 2002 2003 2004 2005 2006 2007 1999 2000 2001 2002 2003 2004 2005 20
Slide 45: Supplementary Data
21 / 02 / 2008 SUPPLEMENTARY DATA
Slide 46: Full-year income statement by core business
SUPPLEMENT - SOCIETE GENERALE GROUP Full-year income statement by core business Global Investment Corporate & In EUR m French Networks International Retail Banking Financial Services Management & Services Investment Banking Corporate Centre Group FY 07 FY 06 FY 07 FY 06 FY 07 FY 06 FY 07 FY 06 FY 07
Slide 47: Quarterly income statement by core business
SUPPLEMENT - SOCIETE GENERALE GROUP Quarterly income statement by core business Global Investment Corporate & In EUR m French Networks International Retail Banking Financial Services Management & Services Investment Banking Corporate Centre Group Q4 07 Q4 06 Q4 07 Q4 06 Q4 07 Q4 06 Q4 07 Q4 06 Q4 07
Slide 48: Group C/I ratio in Q4 07
SUPPLEMENT - SOCIETE GENERALE GROUP Group C/I ratio in Q4 07 Change Operating expenses (in EUR bn) Q4 07 / Q4 06 Increase in the C/I ratio in Asset Group Management and Corporate and Investment (-5.0%*) Banking as a result of the financial crisis 3.6 3.4 Asset Management: 118.8% (vs. 66.1% in Q4 0
Slide 49: Change in risk-weighted assets
SUPPLEMENT - SOCIETE GENERALE GROUP Change in risk-weighted assets Average credit risk equivalent in EUR bn 320.7 325.4 308.8 293.0 275.1 281.4 Corporate & 268.2 259.1 95.0 92.3 Investment Banking 249.2 93.1 85.9 80.8 82.0 80.0 78.8 26.7 GIMS 76.3 25.2 22.4 20.6 19.4 19.5 41.4 19.0 38.6 39.8 Financi
Slide 50: Customer deposits and savings
SUPPLEMENT - FRENCH NETWORKS Customer deposits and savings Change Average outstanding Q4 07/Q4 06 In EUR bn 197.6 204.6 209.0 207.6 205.6 +4.1% 62.4 64.6 65.1 66.2 +9.9% LIFE INSURANCE * * 60.2 Managed savings +3.1% SHARE ACCOUNTS 49.6 52.7 53.6 50.6 47.0 -5.1% MUTUAL FUNDS 2.2 2.2 +2.3% OTHERS 2.2
Slide 51: Customer loans
SUPPLEMENT - FRENCH NETWORKS Customer loans Change Average outstanding Q4 07/Q4 06 in EUR bn 122.8 125.9 129.3 132.4 136.8 +11.4% INDIVIDUALS o.w.: 62.5 +11.4% 59.2 61.1 - Housing 56.1 57.6 9.5 9.5 +0.2% - Consumer credit 9.5 9.5 9.5 & overdrafts BUSINESS 58.7 61.4 +12.6% 54.5 55.9 57.4 CUSTOMERS* B
Slide 52: Productivity of the French Networks
SUPPLEMENT - FRENCH NETWORKS Productivity of the French Networks Change since 1997 170 +61% Bank cards (No.) 160 +58% Savings accounts (No.) 150 140 130 +32% Individual current a/c (No.) 120 110 100 +2% Global headcount* 100 = 1997 90 80 -22% Administrative staff 70 1997 1998 1999 2000 2001 2002 200
Slide 53: Interest margins of the French Networks
SUPPLEMENT - FRENCH NETWORKS Interest margins* of the French Networks The interest margin is an aggregate indicator dependent on three elements: Interest margin on loans As a % Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Structure effect, measured by the ratio of deposits to loans Intere
Slide 54: Specialised Financing: a player with a diversified and growing businesses
SUPPLEMENT - FINANCIAL SERVICES Specialised Financing: a player with a diversified and growing businesses Breakdown of 2007 NBI by activity Breakdown of 2007 NBI by geographical region Business Finance & Services Operational Vehicle Leasing Germany and Equipment & Fleet Management Italy Finance IT A
Slide 55: Change in risk-weighted assets
SUPPLEMENT - FINANCIAL SERVICES Change in risk-weighted assets Average credit risk equivalent in EUR bn 41.4 38.6 39.8 37.6 Operational Vehicle Leasing & 36.6 7.7 7.4 Fleet Management 7.1 7.2 6.9 16.4 17.4 Consumer Credit 15.1 15.8 14.6 14.7 15.1 15.3 15.7 16.0 Equipment Finance IT Asset Leasing & M
Slide 56: Full-year income statement
SUPPLEMENT – GLOBAL INVESTMENT MANAGEMENT & SERVICES Full-year income statement SG SS & Online In EUR m Asset Management Private Banking Total GIMS Savings FY 07 FY 06 Change FY 07 FY 06 Change FY 07 FY 06 Change FY 07 FY 06 Change Net banking income 1,119 1,281 -15%* 823 658 +27%* 1,799 1,256 +32%*
Slide 57: Quarterly income statement
SUPPLEMENT – GLOBAL INVESTMENT MANAGEMENT & SERVICES Quarterly income statement SG SS & Online In EUR m Asset Management Private Banking Total GIMS Savings Q4 07 Q4 06 Change Q4 07 Q4 06 Change Q4 07 Q4 06 Change Q4 07 Q4 06 Change Net banking income 191 348 -58%* 233 174 +36%* 428 362 +20%* 852 884
Slide 58: Breakdown of assets under management by type of product
SUPPLEMENT – ASSET MANAGEMENT Breakdown of assets under management by type of product EUR 357.7bn at December 31st 2007 Dec. 07 Dec. 06 354.0 371.2 393.4 374.6 357.7 (1) 73.6 Alternative 66.6 68.5 65.7 18% Alternative 17% investment 60.1 Investment (2) 57.2 56.0 55.9 Diversified 55.9 54.2 Equities &
Slide 59: Breakdown of assets under management by client segment
SUPPLEMENT – ASSET MANAGEMENT Breakdown of assets under management by client segment EUR 357.7bn at December 31st 2007 354.0 371.2 393.4 374.6 357.7 15% Third-party 15% 16% 14% 19% distribution 17% French 18% 17% 17% 49% Retail Networks 16% 13% Life 14% 14% 14% 14% Insurance 4% 4% 4% Asia 4% 4% 26%
Slide 60: Full-year income statement
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Full-year income statement Total Corporate & Investment Total Corporate & Investment In EUR m Banking (excluding Cowen) Banking FY 07 FY 06 Change FY 07 FY 06 Change Net banking income 4,522 6,860 -34% -33%* 4,522 6,998 -35% -33%* o.w. Financing & Advisory
Slide 61: Quarterly income statement
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Quarterly income statement Total Corporate & Investment Total Corporate & Investment In EUR m Banking (excluding Cowen) Banking Q4 07 Q4 06 Change Q4 07 Q4 06 Change Net banking income (661) 1,688 NM -140%* NM (661) 1,688 NM -140%* NM o.w. Financing & Advi
Slide 62: Change in risk-weighted assets
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Change in risk-weighted assets* Change over In EUR bn Change over 12 months 12 months like-for-like 96.3 93.7 +10.7% +16.7% 89.8 90.8 80.2 81.9 82.0 77.1 79.6 +6.1% Counterparty risk +50.6% Market risk Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 0
Slide 63: Euro Capital Markets and Structured Finance rankings
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Euro Capital Markets Structured Finance Structured Finance Debt Capital Markets (1) 2007 2006 2005 Export Finance 2007 2006 2005 Euro Bond House of the Year a Best Export Finance Arranger (1) #1 #1 #1 All international Euro-denominated bonds #3 #5 #5
Slide 64: Derivatives: awards and rankings
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Derivatives Highlights on New Awards & Rankings Q4 2007 Equity Derivatives 2007 2006 2005 Equity Derivatives House of the Year Best Equity Derivatives House Global a(1) a(2) a(3) in Asia a(5) a(4) a(4) in Europe a(5) Euro Bond House of the Year Equity
Slide 65: Exposure to US residential mortgage risk
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Exposure to US residential mortgage risk CDO: AAA super senior tranches portfolio # 1 portfolio # 2 portfolio # 3 Gross exposure at 31/12/07 in EURm 1,401 1,736 1,717 Attachment point 31% 15% 32% Underlying mezzanine high grade mezzanine % of underlying su
Slide 66: Exposure to LBO financing
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Exposure to LBO financing 14th in IFR League Tables, no significant activity in the US Final take: EUR 3.0bn at 31/12/07 Average final take: EUR ~25m Outstanding in underwriting: EUR 1.2bn at 31/12/07 Revenues EUR 160m in 2006 EUR 149m* in 2007 * o
Slide 67: SPVs sponsored by SG CIB
SUPPLEMENT - CORPORATE & INVESTMENT BANKING SPVs* sponsored by SG CIB 6 multiseller commercial conduits** with limited exposure to subprime Breakdown of underlying SG liquidity At 31/12/07 Asset size Rating Trade Commercial Consumer Equipment Residential line given (in EUR m) Auto loans receivable
Slide 68: Corporate Centre
SUPPLEMENT - SOCIETE GENERALE GROUP Corporate Centre* GOI: EUR 226m (vs. EUR 70m in 2006) Capital gains from equity portfolio disposals: EUR 502m in 2007 (incl. EUR 277m in Q4 07) vs. EUR 296m in 2006 Liquidity management of some SGAM funds: En M EUR 2007 2006 write-downs and depreciations booked
Slide 69: Sectoral diversification of risks at 31/12/2007
SUPPLEMENT – RISK MANAGEMENT Sectoral diversification of risks at 31/12/2007 Business services Collective services Healthcare, social 7% 5% Corporate services Personal & domestic 2% services commitments: Oil & gas 1% Telecoms 4% EUR 356 bn* 3% Media Metals, minerals 2% 4% Transport & logistics Fores
Slide 70: Geographical breakdown of commitments at 31/12/2007
SUPPLEMENT – RISK MANAGEMENT Geographical breakdown of commitments at 31/12/2007 On- and off-balance sheet* On-balance sheet* Corporates + Individuals: EUR 461bn Corporates + Individuals: EUR 326bn South North North South Japan/ America America Japan/ America America Australia 2% Asia Pacific 10% Au
Slide 71: Trading VaR
SUPPLEMENT – RISK MANAGEMENT Trading VaR* Quarterly average of 1-day, 99% Trading VaR (in EUR m) 47.9 46.0 Trading VaR 36.4 40.8 31.7 24.4 25.1 48.8 Credit 19.8 17.6 16.2 20.3 21.8 16.4 15.4 40.9 15.2 16.3 10.8 13.6 10.7 11.8 12.4 15.3 Fixed Income 12.3 12.6 14.6 12.7 11.6 12.8 15.6 42.4 20.3 16.2 1
Slide 72: Provisioning of doubtful loans
SUPPLEMENT – RISK MANAGEMENT Provisioning of doubtful loans 31/12/2006 30/06/2007 31/12/2007 Customer loans (in EUR bn) 279 305 326 Doubtful loans (in EUR bn) 10.6 11.3 11.4 Doubtful loans/customer loans 3.8% 3.7% 3.5% Provisions (in EUR bn) 6.7 6.7 6.8 Overall coverage ratio for 63% 59% 59% doubtfu
Slide 73: Determination of number of shares used to calculate EPS and book value per share
TECHNICAL SUPPLEMENT Determination of number of shares used to calculate EPS and book value per share Average number of shares (thousands) 2005 2006 2007 Existing shares 437,836 443,065 463,477 Deductions Shares allocated to cover stock options awarded to staff and 16,456 11,939 8,675 restricted sha
Slide 74: Economic and financial environment
TECHNICAL SUPPLEMENT Economic and financial environment Q4 06 Q3 07 Q4 07 Interest rates (quarterly average) (%) 10-year French government bond 3.79 4.44 4.30 3-month euribor 3.59 4.49 4.72 Indices (end of period) CAC 40 5,542 5,716 5,614 EuroStoxx 50 4,120 4,382 4,400 Nasdaq 2,415 2,701 2,652 Curre
Slide 75: Investor Relations
21 / 02 / 2008 Investor Relations Patrick SOMMELET, Louise DE L’ESTANG, Stéphane MARTY, Pascale MASSOUD-AYOUB Tel.: +33 (0)1 42 14 47 72 E-mail: investor.relations@socgen.com - Internet: www.ir.socgen.com