Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Investor Day (December 2006)
178 slides from Credit Agricole SA's investor day presentation, Dec 8, 2006
Slide 1: Investor Day
Investor Day 8 December 2006 1 –
Slide 2: Disclaimer
Disclaimer This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts under the meaning of European Regulation n° 809/2004 from 29 April 2004 (chapter 1, article 2, § 10). This information was developed from scenarios
Slide 3: Introduction
Introduction Georges Pauget Chief Executive Officer 3 –
Slide 4: 2006–2008 strategic development plan
2006–2008 strategic development plan Crédit Agricole's development is characterised by: Sustainable growth Profitable growth Balanced growth 4
Slide 5: Sustainable growth
Sustainable growth 2006–2008 strategic development plan: Sustainable growth based on A balance between organic growth and acquisitions Finding growth drivers in distribution networks (two countries outside France) and product platforms Targeted regions for acquisitions: Europe, neighbouring countrie
Slide 6: Profitable growth: main financial targets
Profitable growth Main financial targets 2006–2008 net banking income (CAGR) +10% International NBI/total NBI 50% (vs 35% in 2005) Cost/income ratio –1.5 points per year 2006–2008 EPS (CAGR) 10% Minimum dividend payout ratio 30–35% Good start over the first nine months of 2006 Net banking income (CA
Slide 7: Sustainable growth: investment in organic growth drivers
Sustainable growth Continuing investment in organic growth drivers Renewed business momentum at LCL and the Regional Banks Acceleration in pooling of production resources between LCL and the Regional Banks Ongoing enlargement of product ranges and customer bases in specialised business lines Profita
Slide 8: Profitable growth: investment strategy
Profitable growth Investment strategy Reference scenario: €5 billion – Self–financed – Focus on international activities – In accordance with strict financial criteria Possibility of targeted acquisitions depending on opportunities Rapid implementation As part of the reference programme – Investment
Slide 9: Acquisitions announced in 2006
Profitable growth Acquisitions announced in 2006 Country Amount Breakdown by region invested (€m) 6% Retail banking EAB Egypt > 200 Emporiki Greece ≈ 2,200 Eurozone Other Index Bank Ukraine ≈ 220 Meridian Bank (2005–2006) Serbia ≈ 100 94% Bancassurance BES Assurance (+ BES capital increase) Portugal
Slide 10: Balanced growth: a new international balance
Balanced growth A new international balance 2005 net 2005 pro forma net banking banking income income after acquisitions 8% Retail Banking 43% (LCL + International) 57% International France 92% 31% Specialised Financial 35% Services, Asset Management and Insurance 69% 65% 33% 33% Corporate and Inves
Slide 11: Balanced growth: maintaining the Group's risk profile
Balanced growth While maintaining the Group's risk profile Contribution to net income – Group share Balanced growth between the three Corporate and Investment core business lines Retail banking Banking 35% 30% Regional Banks* International expansion of retail LCL banking activities IRB Specialised b
Slide 12: Crédit Agricole Group international development in 2006
Crédit Agricole Group international development in 2006 Rapid growth built on robust foundations Jean–Frédéric de Leusse Group Director, International Development 12 –
Slide 13: International Retail Banking indicators
International Retail Banking Indicators at 30 September 2006 8,500 employees* ROE: 16% Allocated capital Attributable Contribution of net income Italy to net income 14.8% 13.1% 9.7% 85.2% * Excluding Ukraine, Greece and Italy 13
Slide 14: Contents
Contents The international development model chosen by Crédit Agricole Reason for this approach Our integration model Planning and management process Crédit Agricole in Italy Crédit Agricole in Greece New acquisitions – Development of our International Retail Banking entities 15
Slide 15: The international development model chosen by Crédit Agricole
The international development model chosen by Crédit Agricole 16
Slide 16: The international development model chosen by Crédit Agricole
The international development model chosen by Crédit Agricole Since the beginning of 2006, we have rapidly transformed the Group and extended its international reach, in line with the targets of our strategic development plan The process has been conducted in strict compliance with our investment cr
Slide 17: Euro zone retail banking presence and growth potential
The international development model chosen by Crédit Agricole In the euro zone, we now have a significant retail banking presence in three domestic markets The growth potential of our new markets (Greece, Italy) is considerably greater than the European average 2003 2004 2005 France 4.9% 4.3% 7.7% I
Slide 18: A decentralised business model
A decentralised business model We have focused on the markets we know best We have opted to transform our minority partnerships so that we can become an operator in retail banking or in specialised businesses, in Italy, Greece and Portugal Our excellent knowledge of the entities in which we invested
Slide 19: Each entity has its business model
Each entity has its business model Crédit Agricole has proven expertise in integrating new businesses, that has been acquired over many years Our integration plans are organised around four objectives Meet the acquisition business plan targets Bring corporate functions (risk management, finance, con
Slide 20: Controls are rapidly put in place in each entity
Controls are rapidly put in place in each entity Immediate action is taken to establish effective oversight by the Group’s corporate functions Principle of joint oversight by local management and executives from the Group's corporate functions Risk management: the local risk management officer repor
Slide 21: Transformation of the international retail banking business line
In–depth transformation of the international retail banking business line in 2006 The acquisitions made since 2005 have led to an in–depth transformation of international retail banking division Following acquisition of the Italian network – 2005 pro forma An estimated eightfold increase in net bank
Slide 22: Pro-active measures to strengthen oversight capabilities
Pro–active measures to significantly strengthen our oversight capabilities International Retail Banking has been pro–actively reinforced and structured Last year, management of all shareholdings in foreign banks inherited from Indosuez, Crédit Lyonnais and Crédit Agricole S.A. was combined and struc
Slide 23: Organisation of International Retail Banking
Organisation of International Retail Banking Strategy, Risks, Permanent Control INTERNATIONAL DEVELOPMENT Private Banking DIVISION INTERNATIONAL RETAIL Finance BANKING HR DEVELOP MANAGE INTEGRATE Organisation/ Supervisory Unit Integration Unit Development Unit 70 people ITALY GREECE UKRAINE 24
Slide 24: An international presence
An international presence International retail banking February 2006 Asset management & insurance Bancassurance Specialised financial services in Portugal March 2006 Index Bank in Ukraine In Serbia Meridian Bank August 2006 In Italy Emporiki in Greece, July 2006 Romania, Albania, Fidis January 2006
Slide 25: Contents
Contents The international development model chosen by Crédit Agricole Reason for this approach Our integration model Planning and management process Crédit Agricole in Italy Crédit Agricole in Greece New acquisitions – Development of our International Retail Banking entities 26
Slide 26: Crédit Agricole in Italy
Crédit Agricole in Italy A major strategic success for Crédit Agricole S.A. in Italy Italy, a robust and buoyant market Italian acquisitions: a stepping stone for high–quality growth Italy: integration is already under way Italy: integration will create value 27
Slide 27: A major strategic success for Crédit Agricole S.A.
A major strategic success for Crédit Agricole S.A. An efficiently leveraged strategic opportunity Crédit Agricole S.A.’s acceptance was a prerequisite for the merger between Intesa and San Paolo IMI Talks were carried out very quickly on a straightforward basis: the merger was backed in principle, a
Slide 28: Future relationship with Intesa
A major strategic success for Crédit Agricole S.A. Future relationship with Intesa will be restricted by anti–trust regulations Talks are being held with anti–trust authorities Crédit Agricole S.A. will not be represented on the new group’s boards Reduction in Crédit Agricole S.A.’s interest: workin
Slide 29: Crédit Agricole in Italy
Crédit Agricole in Italy A major strategic success for Crédit Agricole S.A. in Italy Italy, a robust and buoyant market Italian acquisitions: a stepping stone for high–quality growth Italy: integration is already under way Italy: integration will create value 30
Slide 30: Dichotomy in Italian market between North and South
Dichotomy in Italian market between North and South according to household wealth and balance between deposits and credits Attractiveness score by province (composite index, based on wealth, demographic and social characteristics and banking competition) Ranking of 103 provinces Noteworthy divergenc
Slide 31: Fast growing market
Fast growing market 2000 – 2005 France Italy Credit (p.a. growth) 5.9% 6.2% Savings rate 15.7% 19.7% 1 Banking market is characterised by: Prices at the upper end of the European range Significant upside potential, in particular in product equipment Regional banks that outperform nation–wide banks 2
Slide 32: Strong growth potential in the banking sector
Strong growth potential in the banking sector Growth drivers: Upgrading to European standard in equipment rate Italy Europe Pension reform Growth in SMEs Current accounts 73% 93% (penetration rate) Credit cards 38% 95% (penetration rate) Consumer loans 4% 8% (% of GDP) Mortgage loans 11% 36% (% of G
Slide 33: Crédit Agricole in Italy
Crédit Agricole in Italy A major strategic success for Crédit Agricole S.A. in Italy Italy, a robust and buoyant market Italian acquisitions: a stepping stone for high–quality growth Italy: integration is already under way Italy: integration will create value 34
Slide 34: Northern and Southern Italy display contrasting characteristics
Northern and Southern Italy display highly contrasting characteristics… 19 of the most attractive 20 provinces* are located in Northern Italy The new institution will operate in 44% of the provinces that account for 64% of Italy’s GDP * Composite wealth index, demographic and social characteristics,
Slide 35: Create a solid base in Northern Italy
A strategic choice: create a solid base in Northern Italy Credit Agricole’s retail network in Italy (663): market share in number of branches LOMBARDIA TRENTINO–ALTO ADIGE Bolzano VALLE D'AOSTA Verbano– Cusio– Sondrio Trento Belluno Ossola 1 Como 2 Udine FRIULI–VENEZIA GIULIA The new structure boast
Slide 36: Integration draws on high-performing networks
Integration draws on networks that are already performing very well 2006F* CRPP BPFA 202 branches Total # employees 3,439 1,318 1,991 6,748 # clients*** 623,000 265,000 513,040 1,401,040 # branches 311 150 202 663 Net banking income 756 245 461 1,462 Capital (€m) 937 453 407 1,797 Loans (€m) 12,311
Slide 37: Crédit Agricole in Italy
Crédit Agricole in Italy A major strategic success for Crédit Agricole S.A. in Italy Italy, a robust and buoyant market Italian acquisitions: a stepping stone for high–quality growth Italy: integration is already under way Italy: integration will create value 38
Slide 38: Integration model for the acquired networks
Integration model geared to meet the challenges facing the 3 acquired networks Integration feeds on the Group’s other international acquisitions: quest for convergence, industrialisation, sharing of resources, etc. Integration challenges Integration guidelines Take advantage of existing functions at
Slide 39: Roll-out plan: weeks, months, years
Roll–out plan: 10 weeks, 10 months, 2 years to succeed Reassure clients and staff Stabilise governance and management 10 weeks… Develop the 3–year roadmap to rally staff around Get all managers to buy into a roadmap the corporate development plan Roll out all the components of the new 10 months… bus
Slide 40: Phase 1: rally staff around a roadmap
Phase 1: Late 2006 – Early 2007: prepare to take control Rally staff around a roadmap The roadmap: What we do before acquiring ownership, Our preparations for taking control A. REORGANISE ITALIAN OPERATIONS Define a new organisation with Common holding company functions Banking functions by region B
Slide 41: Phase 1: define a new organisation
Phase 1: Define a new organisation Rally staff around a A. REORGANISE ITALIAN OPERATIONS roadmap Define a new organisation Appoint the management team Chairman CEO • Integration/special projects • Personnel Administration Virtual holding company S • Finance G N Executive Vice Deputy Executive Vice •
Slide 42: Phase 1: mobilise Italian teams
Phase 1: Mobilise Italian teams Rally staff around a roadmap B. INVOLVE ITALIAN ENTITIES “Mobilise teams at grassroots level” 25.11 Convention attended by all CRPP employees (Similar convention at FriulAdria in early 2007) Visit by Senior Management to branches and back–offices Speech to be given by
Slide 43: Phase 1: guide the entities
Phase 1: Guide the entities Rally staff around a C. STEER THE CONTROL–TAKING PROCESS roadmap Before legal transfer of ownership Cariparma and FriulAdria to be run by the team, which has been strengthened Policies for Intesa branches – Branches to be kept within Intesa processes – Network managed by
Slide 44: Phase 1: launch integration tasks
Phase 1: Launch integration tasks Rally staff around a C. STEER THE CONTROL–TAKING PROCESS roadmap Launch integration tasks 9 TASKS • MARKETING STRATEGY • BUSINESS PLAN Fortnightly oversight committee • DEVELOPMENT IN meetings SOUTHERN ITALY Chaired by G. Pauget • HR AND ORGANISATION • MIGRATION OF
Slide 45: Phase 2: integration to end-2007
Phase 2: From the acquisition date to end–2007: integration Put finishing touches to the business and operational 10 MONTHS TO INTEGRATE ENTITIES: platform 3 entities merged into a single institution with separate brands: “3 in 1” RESTRUCTURING: MERGING THREE BANKS INTO ONE • Upgrading of Cariparma’
Slide 46: Considerable integration experience
Phase 2: Considerable integration experience Put finishing touches to the business and operational Integrating groups of branches is common practice in Italy platform In the last five years, some 350 branches have been sold in over a dozen transactions Both Crédit Agricole and Cariparma have conside
Slide 47: Phase 3: extract full potential
2007 – 2009 Phase 3: Extract full potential TWO YEARS TO EXTRACT THE FULL POTENTIAL from the new model OF THE NEW INSTITUTION GROWTH PROJECT: GROWTH DRIVERS Integration Integration and and transfer transfer Growth Growth in in key key Support Support provided provided of of best best practices pract
Slide 48: Crédit Agricole in Italy
Crédit Agricole in Italy A major strategic success for Crédit Agricole S.A. in Italy Italy, a robust and buoyant market Italian acquisitions: a stepping stone for high–quality growth Italy: integration is already under way Italy: integration will create value 49
Slide 49: A value creating model
A value creating model 1,000 971 Our expansion plan Based on the best–performing entities 800 With strong potential for organic growth and improvement 626 609 600 Cost/income ratio of main e m oc 378 competitors 400 ni (2006E and 2010E) gn it e ar m ep oc O nit Intesa: 51% 46% 200 e N SPIMI: 54% 49%
Slide 50: Implementation plan generating synergies
Implementation plan will combine development and increasing operational power, generating €130m in synergies… Cariparma FriulAdria 202 branches :s ei gr Align business en • Develop performance Marketing ys m de 56€ ta • Enhance m it profitability CRPP methods and tools CRPP methods and tools sE Inte
Slide 51: Other potential sources of value creation
… plus other potential sources of value creation Cariparma FriulAdria 202 branches Improve cross–selling Improve cross–selling Improve cross–selling Marketing • Develop Calyon Corporate products Calyon Corporate products Calyon Corporate products Crédit Agricole retail products Crédit Agricole retai
Slide 52: Group presence in Italy
With the support of a strong Group presence in Italy Current organisation – Direct presence Corporate and Consumer Finance Asset Management Investment Banking Calyon Italie Agos Fidis CAAM SGR •Strong local presence in • 51%–owned by Crédit • 50/50 joint Venture between • 107bn in assets under corpo
Slide 53: Conclusion
Conclusion Integration made easier by high geographical concentration in the heart of Italy’s most attractive regions Integration made easier by the current level of performance of the institutions to be combined Integration will create value Integration is already under way 54
Slide 54: Contents
Contents The international development model chosen by Crédit Agricole Reason for this approach Our integration model Planning and management process Crédit Agricole in Italy Crédit Agricole in Greece New acquisitions – Development of our International Retail Banking entities 55
Slide 55: Crédit Agricole in Greece
Crédit Agricole in Greece Takeover of Emporiki by Crédit Agricole S.A. Greece: a high–potential banking market within the euro zone Acquisition of Emporiki: significant transformation potential Our development project Integration is already well under way Initial stages of our project were achieved
Slide 56: Greece, a high potential market
Greece, a high potential market Euro Greece zone One of the fastest growing Average GDP 3.7% 2.0% economies in the euro zone growth 2000 – 2005 Projected growth 3.7% 1.9% 2006 – 2010 Greece Europe Average growth in lending in 2005 27% 9% Characteristics of the Greek market: Average growth in 33% 11%
Slide 57: Crédit Agricole in Greece
Crédit Agricole in Greece Takeover of Emporiki by Crédit Agricole S.A. Greece: a high–potential banking market within the euro zone Acquisition of Emporiki: significant transformation potential Our development project Integration is already well under way 58
Slide 58: Acquisition of Emporiki
Acquisition of Emporiki: capacity to overhaul the bank 2005 Q3 2006 No. 4 bank in Greece Net banking income 826 734 10% market share Gross operating 239 458 1.5 million customers income 376 branches Attributable income 74 94 7,700 employees Cost/income ratio 71% 65% Crédit Agricole and Emporiki have
Slide 59: Considerable scope for improvement
Considerable scope for improvement… Lagging behind its peers Growth in net banking income, 2005 (%) Cost/income ratio, 2005 (%) 30% 80% 71% 25% 25% 22% 58% 20% 60% 55% 20% Median: 48% 48% Median: (1) 20.8% (1) 15% 51% 9% 40% 10% 5% 5% 20% 0% NBG Alpha EFG Bank Emporiki 0% Eurobank Piraeus NBG Alpha
Slide 60: Scope for improved operating efficiency
…and for improved operating efficiency Room to boost productivity(1) Loans/Branch (€m) Net banking income/Branch (€m) 80 77.7 5 5.0 4.0 60 50.4 51.9 51.3 Median: 4 43.7 51.6 (3) 3.1 2.9 Median: 3 (3) 3.6 40 2.2 20 2 1 0 NBG Alpha EFG Bank Emporiki 0 Eurobank Piraeus NBG Alpha EFG Piraeus Emporiki Ne
Slide 61: Crédit Agricole in Greece
Crédit Agricole in Greece Takeover of Emporiki by Crédit Agricole S.A. Greece: a high–potential banking market within the euro zone Acquisition of Emporiki: significant transformation potential Our development project Integration is already well under way 62
Slide 62: Our development project for Emporiki
Our development project: "Turn Emporiki into a benchmark in the Greek banking sector" Emporiki, a Greek bank focused on its domestic market and neighbouring markets, now belongs to the Crédit Agricole Group and its international network Our ambition is to use this backing to: Start by using our know
Slide 63: Crédit Agricole in Greece
Crédit Agricole in Greece Takeover of Emporiki by Crédit Agricole S.A. Greece: a high–potential banking market within the euro zone Acquisition of Emporiki: significant transformation potential Our development project Integration is already well under way 64
Slide 64: The new management team
The new management team is already getting to grips with the integration process 24 August: temporary management team controlled by Crédit Agricole S.A. put in place International development manager, head of the integration project, named as acting Chairman A majority of the seats on the Board of D
Slide 65: Joining Forces integration project
Drawing on a morale–boosting integration project… Joining Forces Three objectives: Launched on 30 August Successfully complete integration, by aligning key processes at Emporiki with Crédit Agricole standards Step up business development Improve efficiency and productivity 16 TASKS • INTEGRATION: Or
Slide 66: A commitment from all Group business lines
A commitment from all Group business lines Certain Group business lines were already present with Emporiki Credicom, created with Sofinco, now controls about 25% of the auto finance market. Emporiki Life, created with Predica, successfully completed its first major campaign after training some 600 s
Slide 67: The first stages
The first stages Since november 2006: new management in place By end–January 2007: new organisation in place By end–March 2007: finalised corporate strategic plan and five–year business plan By end–June 2007: Joining Forces project completed 68
Slide 68: Contents
Contents The international development model chosen by Crédit Agricole Reason for this approach Our integration model Planning and management process Crédit Agricole in Italy Crédit Agricole in Greece New acquisitions – Development of our International Retail Banking entities 69
Slide 69: Strengthened partnership with BES (Portugal)
Strengthened partnership with BES (Portugal) Relationship history Crédit Agricole became a shareholder of BES in 1990, when the bank was privatised Creation of Tranquilidade Vida (1993), Credibom (1995), ES Seguros (1996) Average market share of BES: 18% (9% in 1992); No. 3 bank in Portugal Partners
Slide 70: An investment in growth (Egypt)
An investment in growth (Egypt) 80% of Egyptian American Bank acquired by Crédit Agricole and its partner via a public offer in March 2006 Merged with Calyon Bank Egypt in September to create Crédit Agricole Egypt 60% Crédit Agricole Group 20% Mansour Maghraby Group 20% free float One of Egypt's thr
Slide 71: High growth potential (Ukraine)
High growth potential (Ukraine) September 2006 closing on acquisition of 99.9% interest A medium–sized bank (2% market share) with national coverage Longstanding Group presence via Calyon Investment in 2007: 50 new branches, IT system Development of subsidiaries (auto finance) under review Integrati
Slide 72: Strong growth, with integration underway (Serbia)
Strong growth, with integration underway (Serbia) Acquisition of 71% interest in June 2005 and of the balance in September 2006 A medium–sized bank (2% market share) with strong growth potential Investment in 2006: 30 new branches, 150 ATMs Development of new subsidiaries (insurance, leasing) Integr
Slide 73: Development of banking activities (Poland)
Development of banking activities (Poland) Acquisition of Lukas SA in June 2001; operations primarily in consumer finance Development plan for banking activities approved in 2005 Specialisation of consumer finance/banking networks New IT system (September 2005) Branch opening programme (47 in 2006,
Slide 74: A stronger presence (Morocco)
A stronger presence (Morocco) Crédit Agricole SA owns 52.6% of Crédit du Maroc (a former Crédit Lyonnais subsidiary) Partnerships have been developed with Attijari Wafa (Morocco's No. 1 bank) in consumer credit (Wafasalaf) and asset management Market share: 7% Development plan approved in 2005 Branc
Slide 75: The network in sub-Saharan Africa
The network in sub–Saharan Africa Crédit Agricole has a presence in Cameroon, Senegal, Côte d’Ivoire, Gabon, Congo, Madagascar (ex Crédit Lyonnais) and Djibouti (ex Indosuez) Marketing development targeting personal and business customers; productivity improvement Financial data (2005) Net banking i
Slide 76: Crédit Agricole's Insurance business
Crédit Agricole’s Insurance business Jean–Yves Hocher Executive Vice President, Insurance 77 –
Slide 77: Insurance indicators at 30 September 2006
Insurance Finaref Assurance BES VIDA BES SEGUROS Indicators at 30 September 2006 1,000 employees ROE: 13% Allocated capital Attributable net income Life/Non–Life 13.8% 14.0% 22.2% 86.0% 78
Slide 78: Several business lines, three common principles
Several business lines, three common principles 1. AAspecialised 1. specialisedapproach approachto toInsurance Insurancebusiness business (personalinsurance, (personal insurance,property property&&casualty, casualty,loan loaninsurance) insurance) 2. Distribution 2. Distributionaligned alignedwith wi
Slide 79: Insurance: organisation of the business line
Insurance: organisation of the business line Predica for personal insurance, started from scratch in 1986, France’s second largest life insurer in 2006 (€150 billion in managed assets) Pacifica for property & casualty insurance, started from scratch in 1990, ranked 9th non life insurer in France in
Slide 80: Strong positioning: a growth driver
Insurance, a growth driver Strong positioning : Crédit Agricole is No. 2 in life and non–life insurance in France Premium income – France €bn 2004 2005 CNP 20 23 Crédit Agricole 17 20 AXA 18 19 Predica’s growth is outpacing that of the rapidly expanding life insurance market Pacifica is growing rapi
Slide 81: Insurance: sustained growth
Insurance: sustained growth Double–digitgrowth Double–digit growthinincontribution contributionto toconsolidated consolidated netincome net incomeinin2005 2005 andthe and thefirst firstnine ninemonths monthsof of2006 2006 82
Slide 82: Property & Casualty Insurance: Pacifica
Property & Casualty Insurance PACIFICA Patrick Duplan Chief Executive Officer 83 –
Slide 83: Pacifica
Pacifica No. 2 NON–LIFE BANCASSURER No. 9 NON–LIFE INSURER IN FRANCE 84
Slide 84: Contents
Contents Pacifica's business lines: property & casualty insurance and family protection Strong growth in a mature market An original and effective organisational structure for this business Positioned as an active challenger Profitable growth Robust growth outlook 85
Slide 85: Pacifica's business lines
Pacifica’s business lines : property & casualty insurance and family protection AUTO 3 packages HOME 4 packages Studio Mini Confort Median Maxi New–for–old cover PLEINS DROITS Batimmo HEALTH 3 packages PERSONAL ACCIDENT 4 packages Legal protection Eco • Family Confort Confort + • Solo 5% – 30% 86
Slide 86: Expansion into new areas
Pacifica’s business lines 2001 – 2006 EXPANSION INTO NEW AREAS 2001 – 2003 Agricultural insurance 2003 – 2006 Local authorities Not–for–profits Small businesses 87
Slide 87: Strong growth in a mature market
Strong growth in a mature market Premium income 300 273 PACIFICA 238 204 Integration 200 of AFCALIA 179 154 134 Market 117 135 128 132 Source: FFSA 100 115 122 100 107 2000 2001 2002 2003 2004 2005 2006 Estimate 88
Slide 88: Strong growth: new business
Strong growth: new business X 1000 policies 1 250 1 110 1 008 922 2006 vs. 2000: new business up 82% 791 CAGR: 10.5% 713 688 2000 2001 2002 2003 2004 2005 2006 Estimate 89
Slide 89: Strong growth: in-force business
Strong growth: in–force business 5,300 X 1000 policies 4,632 4,131 3,645 2006 vs. 2000: in–force business up 117% CAGR = 13.8% 3,199 2,819 2,449 2000 2001 2002 2003 2004 2005 2006 Estimate 90
Slide 90: Claims management model
An original claims management model 13 loss adjustment units Ä 420,000 claims in 2005 Policyholder claims Ä All claims dealt with by phone Satisfaction rate 95% 91
Slide 91: An effective organisational structure
An effective organisational structure Distribution via the networks IT systems : 41 Regional Banks (7,142 branches) ATTICA, based in Vaison La Romaine Designs products, Ä : 1,950 branches steers and manages the Group’s property & casualty business. Ä 25,000 personal lines insurance advisors Back–off
Slide 92: Positioned as an active challenger
Positioned as an active challenger Premium income 1991–2005 No. 1 personal accident insurer No. 2 non–life bancassurer 1,500 No. 7 legal protection insurer No. 9 car, comprehensive household insurer €1,000m 1,000 500 €440m 2006–2010 Ongoing strong momentum €120m Double–digit average annual premium 0
Slide 93: Profitable growth: recurring income before tax
Recurring income before tax Profitable growth € millions 71.8 55.2 ROE Combined ratio 2003 14.1% 98.6% 28.5 19.7 2004 20.5% 94.9% 14.7 11.8 2005 20.5% 93.5% 2000 2001 2002 2003 2004 2005 94
Slide 94: Robust growth outlook
Robust growth outlook Continuing to win new customers for our historical insurance products (car, comprehensive household, health, personal accident, legal protection) Aligning insurance advisor performance Raising success rate Reducing attrition rate Developing a multi–channel approach Full service
Slide 95: Personal Insurance: Predica
Personal Insurance PREDICA Jean–Yves Hocher Chief Executive Officer 96 –
Slide 96: Predica
Predica No. 1 personal insurance BANCASSURER No. 2 personal INSURER IN FRANCE 97
Slide 97: Contents
Contents Predica's businesses: savings, pensions, personal risk Strong, recurring growth in a buoyant, steadily expanding market An effective organisational model A leadership position Solid financial bases New business opportunities 98
Slide 98: Predica's business lines: savings and pensions
Predica’s business lines Savings – Pensions Multi–market and multi–network diversified products 5.5 million savings contracts 3.4 million pension plans (PERPs, small businesses, group plans) 99
Slide 99: Predica's business lines: personal risk and P&C
Predica’s business lines Personal risk and property & casualty 4.1 million personal risk and property & casualty policies 100
Slide 100: A buoyant market
A buoyant market Savings/Pensions premiums Personal risk premiums €bn €bn 25 140 + 7% + 16% + 9% 120 20 + 9% + 15% + 3% + 6% 100 + 22% + 8% + 2% + 4% – 7% + 1% 15 80 60 10 40 5 20 0 0 2000 2001 2002 2003 2004 2005 2006e 1999 2000 2001 2002 2003 2004 2005 Disability Death Health Steady growth in savi
Slide 101: A steadily expanding market
A steadily expanding market French life insurance market – Mathematical Reserves €bn 1 200 1,022 1 000 941 771 845 800 677 707 636 600 400 200 0 2000 2001 2002 2003 2004 2005 sept-06 Unit-linked Non-unit-linked Total Life insurance accounts for two–thirds of household savings invested in financial p
Slide 102: Predica, strong and recurring growth
Predica, strong and recurring growth With €9 billion in 2005, Predica’s net new money is growing at a faster rate than the market (base 100 in 2004) 180 170 + 36% 160 150 140 130 + 23% 120 110 100 2004 2005 2006 estimate Market Predica 103
Slide 103: Growth in mathematical reserves
Predica, strong and recurring growth More than 11% annual growth in mathematical reserves €bn 160 – €144bn €130bn 14% 140 – €116bn 13% 12% 120 – 10.5% 100 – 80 – 60 – 40 – 20 – 0 2003 2004 2005 2006e Non–unit–linked Unit–linked Predica is seeing a shift in product mix towards unit–linked contracts,
Slide 104: An effective business organisation model
An effective business organisation model An industrial process that significantly boosts Predica’s competitiveness : Distribution via the networks : 41 Regional Banks (7,142 IT systems branches), 15 million customers Attica based in Vaison La Romaine Ä : 1,950 branches, 6 million retail customers De
Slide 105: The lowest expense ratio in the market
An effective business organisation model The lowest expense ratio in the market 2004–2005 data Overheads as a % of mathematical reserves 0,35% 0.31% 0,30% 0.27% 0.28% 0,25% 0.23% 0,20% 0.19% 0,15% 0.14% 0,10% 0,05% 0,00% Predica Ecureuil Crédit Mutuel BNPP Sogecap Bques Populaires Customer service,
Slide 106: A leadership position: 2005 rankings
A leadership position In 2005 No. 1 bancassurer, No. 2 life insurer Managed assets : €144 billion Market share (based on mathematical reserves) : 15.1% Savings premium income: €17.7 billion Market share (based on premiums): 14.6% Total premium income: €18.8 billion Number of in force policies: 13 mi
Slide 107: Leadership in the life insurance market
A leadership position In the life insurance market Market Life insurance market shares based on premium income – 2005 In 2005: Other traditional Other With 14.6% of a €120 billion market, insurers bancassurers 28.80% 30.30% Crédit Agricole is the second largest life insurer and the leading insurance
Slide 108: Leadership in the pensions market
A leadership position In the pensions market Share of Perp market, based on premiums Perp (personal pension plans) With a 37% market share, Predica is ranked no. 1 in the Perp market, estimated at €851 million in 2005 Share of farmers’ pensions market, based on premiums Farmers With a 55.2% market s
Slide 109: Leadership in the personal risk market
A leadership position In the personal risk market Share of the term life market, based on premiums Term life With 13.8% of the market, Predica is ranked no. 1 in the term life market, estimated at €1.2 billion in 2005 Share of the long–term care insurance market, based on premiums Other Predica Long
Slide 110: Solid financial basis
Solid financial basis Conservative asset levels and profit–taking policies Ratio of reserves to assets in 2005 Ratio of unrealised gains to assets 3,50% 14,00% 3% 3,00% 12,00% 10.8% 2,50% 1.00% 1.20% 10,00% 7.10% 1.70% 1.30% 3.50% 1.10% 4.80% 2.90% 2,00% 1.50% 8,00% 2.50% 1,50% 0.70% 0.80% 6,00% 2.1
Slide 111: New business opportunities: unit-linked
New business opportunities Focus on unit–linked by revamping the range: 2005 2006e 2007 target Unit–linked as a % of total 13% 19% 30% new money Discontinue pure non–unit–linked offer Upgrade combined unit–linked/non–unit–linked offer with closed–end funds offering more guarantees to policyholders P
Slide 112: New business opportunities: segment the range
New business opportunities Segment the range to provide a tailored response to all our customers New money invested in Predissime 9,which was restructured in 2005 and enhanced with the addition of a unit–linked formula with a capital guarantee, rose from €400 million in 2005 to €4 billion in 2006 Ot
Slide 113: Increase penetration rate in personal risk insurance
New business opportunities Increase penetration rate in personal risk insurance Term life: continue the drive to increase penetration rate among LCL customers (2% in 2005, 3% in 2006), with the aim of matching the rate among Crédit Agricole customers (close to 20%) Funeral insurance: following the s
Slide 114: International Insurance
International Insurance Bernard Delas Managing Director, International Insurance Division 115 –
Slide 115: Contents
Contents The ambition of becoming a European bancassurer Strategy to export the Crédit Agricole model in each business line A broad geographic reach Focus on partnership with Banco Espirito Santo Other achievements in 2006 and current projects A significant contribution to Insurance revenues within
Slide 116: The ambition of becoming a European bancassurer
The ambition of becoming a European bancassurer Leverage Crédit Agricole’s bancassurance model in three business lines: Life insurance Property & casualty insurance Loan insurance and insurance for other banking–related risks Nurture the emergence of a European insurer specialised in bancassurance p
Slide 117: Export the model: life insurance
A strategy to export the model: Life insurance Target: replicate the Predica model abroad Close relationship between insurer and distributor: Partnerships implemented via joint ventures controlled by the Group’s Insurance division – Acquisitions of the control of existing bancassurance companies – C
Slide 118: Export the model: property & casualty insurance
A strategy to export the model: Property & casualty insurance Target: replicate the Pacifica model abroad A particularly innovative business model: The expertise acquired in France and Portugal in the sale of P&C insurance to consumers via bank distribution networks is unique in Europe A position as
Slide 119: Export the model: loan insurance
Strategy to export the model: loan insurance and insurance for banking–related risks Target: Accelerate international development in loan insurance, leveraging Finaref Assurance Unique expertise: Finaref Assurance has specialised at the European level in a B–to–B approach to loan insurance, targetin
Slide 120: Property & casualty partnership proposal
Strategy to export the model: Property & casualty insurance Attractive partnership proposal: Product range adapted to the lending environment Multilingual, European administration platform, 4 call centres Flexible, rapid deployment under “freedom to provide services” principle, with a Dublin–based u
Slide 121: An already broad geographic reach
An already broad geographic reach Life Loan insurance/banking related risks P&C Planned Egypt – Lebanon Korea – Japan 122
Slide 122: Focus on partnership with Banco Espirito Santo
Focus on partnership with Banco Espirito Santo BES VIDA 2005 key figures BES SEGUROS 2005 key figures Premium income: €1.2bn Premium income: €61.8m Mathematical provisions: ~ €6bn Combined ratio: 94.7% Number of policies in force: ~1 million Number of policies in force: > 338,000 Unit–linked (based
Slide 123: Partnership with BES strengthened
Focus on partnership with Banco Espirito Santo The partnership with Banco Espirito Santo has been strengthened: Crédit Agricole’s direct stake in BES increased to 10.8% Acquisition of 50% of the shares and management control of BES Vida et BES Seguros (transaction closed 29 June 2006), allowing both
Slide 124: Opportunities for value creation with BES
Focus on partnership with Banco Espirito Santo Significant opportunities for value creation: By strengthening positions in a fast–growing, high–margin market By transferring Crédit Agricole's expertise and experience in order to: – Implement the Crédit Agricole's ALM policy – Broaden the product off
Slide 125: Other achievements in 2006
Other achievements in 2006 Greece: Relaunch business momentum at Emporiki Life following takeover of Emporiki Bank by Crédit Agricole S.A. Italy: Agreement with Banca Intesa in loan insurance for its home finance business Po Vita to join Group’s insurance division with acquisition of Cariparma (clos
Slide 126: Contribution to Insurance revenues within Group results
A significant contribution to Insurance revenues within Group results First nine months of 2006: 9% Premium income by business line (in € m) 9 months 2006 9 months 2005 Life 1,540 451 Property & casualty 153 0 Loan insurance and banking–related risks 112 64 TOTAL 1,805 515 127
Slide 127: Calyon, the corporate and investment banking arm
Calyon, the corporate and investment banking arm of the Crédit Agricole Group Jérôme Grivet, Member of the Executive Committee of Calyon Marc Litzler, Deputy Chief Executive Officer of Calyon Yves Perrier, Deputy Chief Executive Officer of Calyon 128 –
Slide 128: Corporate and Investment Banking indicators
Corporate and Investment Banking Indicators at 30 September 2006 11,000 employees ROE: 21% Allocated capital Attributable Contribution of net income International operations to net banking income 30.7% 67.0% 30.8% 129
Slide 129: Calyon: commitments upheld
Calyon, the corporate and investment banking arm of the Crédit Agricole Group Calyon: commitments upheld A profile tailored to our target of recurring profitability Strong growth potential 130
Slide 130: 2004–2005: commitments upheld
2004 – 2005: commitments upheld A complicated process carried out in record time... June 2003: successful takeover bid for Crédit Lyonnais by Crédit Agricole 30 April 2004: creation of Calyon through a transfer of assets of €140 billion Early 2005: completion of integration measures (rationalisation
Slide 131: Calyon's position is steadily improving
Calyon's position is steadily improving... Rankings of European CIBs by revenues 2004 2005 H1 2006 1. Deutsche Bank 1. Deutsche Bank 1. Deutsche Bank 2. UBS 2. UBS 2. UBS 3. Crédit Suisse 3. Crédit Suisse 3. Crédit Suisse 4. HSBC 4. HSBC 4. HSBC 5. RBS 5. RBS 5. Barclays 6. BNP Paribas 6. BNP Pariba
Slide 132: Stronger growth than the market
... thanks to stronger growth than the market Growth in net banking income (period–on–period) 40% 35% 30% 25% Calyon European CIB 20% market (excluding UK banks 15% and Rabobank in Q3–06) 10% 5% 0% Q2 2005 Q4 2005 Q2 2006 Since the start of 2005, Calyon's net banking income has systematically grown
Slide 133: Cost/income ratio in line with peers
Calyon's cost/income ratio is now in line with that of its peers CIBs cost/income ratio 80% Calyon 70% average of four peers: Four peers: 60% • BNP Paribas • Société Générale • HSBC 50% • Barclays 40% H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 At the time of the merger, Calyon's cost/income ratio was m
Slide 134: Calyon: commitments upheld
Calyon, the corporate and investment banking arm of the Crédit Agricole Group Calyon: commitments upheld A profile tailored to our target of recurring profitability Strong growth potential 135
Slide 135: Geographical diversification of revenues
Good geographical diversification of revenues Breakdown of customer revenues as at 30/9/2006 by region Europe Americas France 30% 19% 28% Asia Africa 11% Middle East 12% * Even balance: 58% in Europe, 42% outside Europe The proportion of business revenues generated in France is decreasing: from 32%
Slide 136: A customer-focused culture
A customer–focused culture Proportion of customer revenues Predominance of customer revenues: average of 83% as of Q1–05 82% 92% 82% 87% 85% 82% More limited exposure to trading revenues than 76% most of its peers in capital markets activities: Institutional clients Control of proprietary trading ac
Slide 137: A diversified business portfolio
A diversified business portfolio A broad portfolio comprising around 20 business lines that have attained or are on the way to attaining critical mass in their respective markets No excessive concentration: no single business line accounts for more than 15% of total revenues Breakdown of revenues by
Slide 138: Structured finance: a key strength
Structured finance: a key strength High and stable rates of return, with ROE consistently above 20%, thanks to three core characteristics: The type of business and its efficiency at Calyon Excellent operating performances with a cost/income ratio around 35% Development of activities generating commi
Slide 139: Structured finance: leading positions
Structured finance: a key strength (2) Leading position in a number of activities Aircraft finance: No. 1 global arranger (Airfinance Journal) Ship finance: one of the top 5 worldwide Project finance: No. 5 worldwide (Dealogic) Real estate finance: No. 4 worldwide (Euromoney) Structured commodities
Slide 140: Capital markets activities: strengthening our position
Capital markets activities: strengthening our position Capital markets activities secure their development by: Looking for an equal balance between activities Customer revenue mix and geographical revenue mix to be diversified Further diversification of the portfolio of business lines: the performan
Slide 141: Brokerage: three market-leading players
Brokerage: three players with market–leading positions Operators with leading positions in their respective markets: CA Cheuvreux: No. 1 in French equity research (Institutional Investor) No. 1 in European midcaps research (Thomson) CLSA: No. 2 in research and sales in Asia (excluding Japan/Australi
Slide 142: Controlled management of credit risk
Controlled management of credit risk Proportion of investment grade Constant improvement in the quality of the portfolio commitments in the % credit portfolio 88.3% of commitments are “investment grade” 90 Continuing selectivity against the backdrop of 85 88.3% strong revenue growth 80 79.8% Tight c
Slide 143: Contained risk profile for capital markets activities
Contained risk profile for capital markets activities Independent market risk department involved in the entire process: Validation of models, independent parameters, production and validation of results and risk indicators A team of 200 professionals worldwide Expertise in control and internal surv
Slide 144: Stabilising effect of Credit Portfolio Management
Stabilising effect of Credit Portfolio Management (CPM) Impact on risk of CPM operations Expected loss Unexpected loss 0% Reducing risk–related costs -2% -4% Portfolio diversification -6% Reduced concentration -8% Significant reduction in portfolio risk on extreme -10% 1 year losses and long–term ho
Slide 145: Calyon: strong growth potential
Calyon, the corporate and investment banking arm of the Crédit Agricole Group Calyon: commitments upheld A profile tailored to our target of recurring profitability Strong growth potential 146
Slide 146: The future: our vision of market conditions
The future: our vision of market conditions The market The market will remain highly liquid; the downtrend in margins has been curbed since the start of 2006 but at a very low level Demand for credit should remain robust (cyclical upturn) Banking revenues should continue to rise rapidly: net banking
Slide 147: Four growth drivers
Four growth drivers On the back of its new size, Calyon has consolidated its position as one of the leading investment banks in Europe, thanks to: The strengthening of its customer base Its human resources expertise The enlargement of its range of products and services A powerful international netwo
Slide 148: Considerable growth in the customer base
Considerable growth in the customer base Growth in number of clients 115 Customer base of 270 key clients and 480 100 107 100 "growth clients" among around 6,500 active clients 11% increase in the number of clients in one year Significant contribution from new clients to customer revenue growth: +39
Slide 149: Customer base growth: institutional clients
Considerable growth in the customer base (2) Institutional clients Prioritising the development of the institutional client base is one of the key objectives of Calyon's strategic development plan Commercial revenues from financial institutions increased at twice the rate of revenues from corporate
Slide 150: Customer base growth: corporate clients
Considerable growth in the customer base (3) Corporate clients The objective: improving overall rates of return in this segment The means: enhancing cross–selling: Interest rate, currency and commodities hedging products Investment banking Value–added services – e.g. trade finance Capital markets an
Slide 151: Human resources: a key factor in performance
Human resources – a key factor in improving performance Development supported by recruitment drives Increased origination capacity (+37 senior bankers since 2005) Accompanying brokerage activities: +162 (in 2006) (mainly at CLSA in Japan and Calyon Financial) Reinforcement of origination teams in in
Slide 152: Competitive finance offering
Competitive finance offering benefiting the creation of Calyon Ability to commit in large–scale transactions Making the most of Calyon's new dimension Strong syndication capacity: Calyon is No. 10 bookrunner worldwide with a syndication volume of USD 65.7 billion over the first nine months of 2006;
Slide 153: An enlarged and innovative capital markets offering
An enlarged and innovative capital markets offering Industrialisation of "flow" products Extension of the e–business offering Optimisation of support processes Extending the offering of structured or hybrid products Product diversification (commodities, forex etc.) Enlarging the asset classes handle
Slide 154: International network with operations in 58 countries
A powerful international network with operations in 58 countries France Western Europe Eastern Europe Central Asia France Germany Hungary Americas Kazakhstan Austria Asia–Pacific Belgium Poland Czech Republic Australia Canada Spain Russia: Finland China: • Moscow • Beijing United States: • St Peters
Slide 155: International deployment of business lines
International deployment of business lines Specific strategies for each country depending on its growth potential Policy of enhancing the network's product range Systematically finding a foothold in each country by expanding the corporate and institutional client base Singapore Western Eastern North
Slide 156: Four illustrations of growth potential
Calyon, the corporate and investment banking arm of the Crédit Agricole Group 1. Calyon: commitments upheld 2. A profile tailored to our target of recurring profitability 3. Strong growth potential Four illustrations: A product line under development: equity derivatives An innovative product line: s
Slide 157: Equity derivatives: background
A product line under development: equity derivatives Background In 2004: business line weakened by the merger Extensive reorganisation since the start of 2005 Creation of Crédit Agricole Structured Asset Management (CASAM), a 50–50 joint venture with CAAM, at the end of 2005 Measures to reflate the
Slide 158: Equity derivatives: products, clients, future
A product line under development: equity derivatives (2) Products A balance between flow products and exotic products Enlarging the range of underlying products: funds, emerging markets etc. Enhanced quantitative research and development Clients A broader customer mix (helping to reduce the risks) C
Slide 159: Four illustrations of growth potential
Calyon, the corporate and investment banking arm of the Crédit Agricole Group 1. Calyon: commitments upheld 2. A profile tailored to our target of recurring profitability 3. Strong growth potential Four illustrations: A product line under development: equity derivatives An innovative product line: s
Slide 160: Structured credit products: strong growth
A product line under development: structured credit products Structured credit products: a strong growth activity Revenue growth of 35% a year in structured credit activities and CDOs since 2003 66% new clients between 2005 and 2006; Banks, hedge funds, asset managers Structured credit & CDO revenue
Slide 161: A diversified product offering
A diversified product offering A diversified range of structured Renowned among our partners products: for our expertise Underlying credit products (CDOs) Synthetic CDOs: arranger mandates Derivatives (e.g.: CPPI, negative basis for CAAM, Prudential, Stanfield, trades etc.) Henderson, Primus Synthet
Slide 162: A renowned capacity for innovation: cash CDOs
A renowned capacity for innovation: e.g. cash CDOs A renowned market leader: ranked as one of the top firms for cash CDOs in 2006 by Informa Global Markets Renowned expertise, illustrated by the number of sole arranger mandates: 2 in 2005, 11 in 2006 in Europe and the US Well known for its innovatio
Slide 163: Successful acquisitions: integration of Omicron
Successful acquisitions: integration of Omicron At the end of 2005, Calyon had two experienced CDO management teams, both specialising in CLOs, based in New York and Paris In January 2006, in order to build on its expertise, Calyon acquired 100% of Omicron Invest Management GmbH Omicron consists of
Slide 164: Four illustrations of growth potential
Calyon, the corporate and investment banking arm of the Crédit Agricole Group 1. Calyon: commitments upheld 2. A profile tailored to our target of recurring profitability 3. Strong growth potential Four illustrations: A product line under development: equity derivatives An innovative product line: s
Slide 165: Export trade and commodity finance strengths
Strengths of export trade and commodity finance activities: A major component of structured finance activities: 27% of total revenues Breakdown of revenues Combination of four activities: in export trade and commodity finance to 30 September 2006 "Flow" products: Trade finance Export finance • Trade
Slide 166: Deployment of trade finance
A business line undergoing deployment: trade finance Prior to the merger, trade finance was not a priority for either of the two banks This business line has been built up since 2004: Trade finance NBI & GOI Definition of objectives with each country 160 in € millions Deployment of a dedicated sales
Slide 167: Structured commodities finance leadership
One of the world market leaders in structured commodities finance Calyon's objective: To maintain our position as one of the market leaders EGPC while adapting to a rapidly changing environment: USD 200,000,000 Crude Oil & Naphta High commodities prices Pre–export Finance Facility Stronger financial
Slide 168: Four illustrations of growth potential
Calyon, the corporate and investment banking arm of the Crédit Agricole Group 1. Calyon: commitments upheld 2. A profile tailored to our target of recurring profitability 3. Strong growth potential Four illustrations: A product line under development: equity derivatives An innovative product line: s
Slide 169: Network potential: the United States
Network potential: example of the United States Current situation Extensive changes to the development model over the recent period Refocusing on activities offering higher added value Calyon Americas: Significant improvement in credit risks 70% breakdown of net banking income 77% of credits were in
Slide 170: US strategy and objectives
Network potential: example of the United States (2) Strategy and objectives Development strategy reviewed since obtaining “Financial holding company” status in September 2006 Objective of revenue growth of at least 30% between now and 2008 Main focuses: Absolute priority: developing the financial in
Slide 171: Calyon, the corporate and investment bank of Crédit Agricole Group
Calyon, the Corporate and investment bank of Crédit Agricole Group Since its creation, Calyon achieved: A 50% growth of its NBI and a 110% growth of its GOI An improvement of its cost/income ratio from 71.1% to 59.4% A growth of its ROE from 14% to 20.7% (9M–04 against 9M–06 figures for Calyon’s CIB
Slide 172: Conclusion
Conclusion Georges Pauget Chief Executive Officer 173 –
Slide 173: Crédit Agricole in 2006
Crédit Agricole in 2006 Sustainable, profitable and balanced growth In 2006, the Group demonstrated its ability: To mobilise itself rapidly To seize opportunities To be flexible ... while upholding the objectives of the strategic development plan 174
Slide 174: A rapidly evolving group but with stable fundamentals
A rapidly evolving group but with stable fundamentals A well defined growth model: control of distribution networks development of product platforms transfers and exchanges of our specific areas of expertise ongoing measures to improve operating efficiency (industrialisation) strict financial discip
Slide 175: Five years of profitable growth
Five years of profitable growth In € billions 31/12/2001 31/12/2005 Change 2005 30/09/2006 vs 2001 Net banking income 6.3 13.7 x2.2 12.0 Net income – Group 1.5 3.9 x2.6 3.8 share Shareholders' equity 15.0 30.7 x2.0 34.0 – Group share Market capitalisation 17.3 39.8 x2.3 47.2* * As at 6 December 2006
Slide 176: Excellent share price performance since the IPO
Excellent share price performance since the IPO 230 210 190 Average rate of return for investors €32 18% per year 170 150 130 110 €16.60 90 70 50 d ju d ju d ju d ju d ju d é in é in é in é in é in é c c c c c c - - - - - - - - - - - 0 0 0 0 0 0 0 0 0 0 0 1 2 2 3 3 4 4 5 5 6 6 Crédit Agricole SA. CA
Slide 177: Next rights issue
Next rights issue Amount: €4 billion Terms: Rights issue with preferential subscription rights Commitment from the Regional Banks to subscribe to an amount equal to their current equity interest Underwritten by the Regional Banks Launched in early 2007 178
Slide 178: Conclusion
Conclusion Focus on the operational implementation of our strategic development plan in 2007 And further organic growth 179