Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — Debt Investor Presentation (November 2018)

53 slides from Credit Agricole SA's debt investor presentation, November 2018

  1. Slide 1: Crédit Agricole Green Bond Investor Presentation

    Crédit Agricole Green Bond Investor Presentation 1 l Green Bond – November 2018

  2. Slide 2: Disclaimer

    DISCLAIMER  Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months 2018 comprises this presentation and the attached press release and financial report which are available on the website https://www.credit- agricole.com/en/finance/finance

  3. Slide 3: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE ON CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET– INAUGURAL CREDIT AGRICOLE GREEN BOND 7.

  4. Slide 4: Key messages

    CRÉDIT AGRICOLE GROUP KEY MESSAGES Optimised structure & profitable strategy Optimised & solid  Crédit Agricole Group boasts a strong and rising solvency financial strength  Crédit Agricole Group takes advantage of the largest retail distribution base in Europe Attractive business model &  Its bu

  5. Slide 5: Group presentation

    GROUP PRESENTATION A hybrid structure (mutual+listed), combining a strong retail franchise with European leaders 39 REGIONAL BANKS + A LISTED ENTITY Egypt Romania Morocco Serbia Poland Ukraine (…) 21m #1 7,000 #1 #1 #1 #1 Top 3 #1 #1 customers market branches digital bank banking app asset manager i

  6. Slide 6: 9M-18 highlights

    CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP 9M-18 HIGHLIGHTS A stable, diversified and profitable business model  Predominance of Retail banking and related business lines, generating 83% of underlying revenues(1) and 79% of underlying Net Income(1) in 9M-18  Asset Gathering including Insurance ac

  7. Slide 7: Introduction: key figures

    INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q3-18 9M-18 Q3-18 9M-18 €1,769m €5,273m Net income Group share - stated €1,101m €3,393m -7.3% Q3/Q3 -6.1% 9M/9M +3.2% Q3/Q3 +4% 9M/9M €1,815m €5,224m Net income Group share - underlying (1) (2) €1,133m €3,338m +3.2% Q3/Q3 -3.8% 9M/9

  8. Slide 8: Results: cost of credit risk still very low

    CRÉDIT AGRICOLE GROUP RESULTS Cost of credit risk: still very low CRÉDIT AGRICOLE S.A. Cost of credit risk / outstandings (in basis points over a rolling four-quarter period)  Regional Banks: 41 41 €104m in Q3, +5bp 101 93 92 37 -5 bp YoY, net reversals 87 87 89 88 78 73  CA Italia: €70m in 35 31

  9. Slide 9: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  10. Slide 10: High solvency and TLAC targets

    FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP High solvency and TLAC targets CET1 ratio Tier 1 ratio TLAC ratio Fully-loaded at 30/09/18 Crédit Agricole Group Fully-loaded at 30/09/18 14.9% Excl. 2.5% of eligib le senior pref. deb t 15.8% ~1% 22.0% Systemic buffer 21.2% 11.5% 2019 requirements (1) (2)

  11. Slide 11: Credit ratings reflect improving credit fundamentals

    FINANCIAL MANAGEMENT Crédit Agricole S.A.’s ratings reflect Crédit Agricole Group’s improving credit fundamentals Moody’s S&P Global Ratings Fitch Ratings LT / ST: A1 / P-1, outlook: Positive LT / ST: A+ / A-1, outlook: Stable LT / ST: A+ / F1, outlook: Stable Last rating action on 5/07/2018: Last r

  12. Slide 12: Financial solidity: MLT market funding programme

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY 102% of Crédit Agricole S.A.’s MLT market funding programme completed at end-September Crédit Agricole Group - 2018 MLT market issues Crédit Agricole S.A. - 2018 MLT market issues Breakdown by issuer: €26.1bn at 30/09/2018 Breakdown by segment: €12.2bn at 30/

  13. Slide 13: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  14. Slide 14: CSR: key messages summary

    CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP Key messages - summary  Crédit Agricole Group, with its cooperative roots and history, possesses a DNA and governance that predispose it to investing in the resilience of its territories, the sustainability of its projects, the usef

  15. Slide 15: CSR: four main areas

    CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP Four main areas ETHICS CHALLENGES OBJECTIVES 4. Prevent over- INCLUSION 1. Ensure the protection of indebtedness: personal data and education and CHALLENGES transparency in their use ESG CRITERIA awareness-raising 2. Ensure real atte

  16. Slide 16: CSR governance structure

    CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP Governance structure  FReD is the global tool for steering and measuring the Group’s progress in terms of CSR:  FIDES = trust  RESPECT = respect for people and territory  DEMETER = preservation of the environment  What is FReD’s

  17. Slide 17: Being a committed group

    CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP Being a committed group  For over 10 years, Crédit Agricole has demonstrated its involvement through its various commitments, many of which focus on the development of “climate finance”.  Signatory of:  Participant in the:  Unite

  18. Slide 18: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  19. Slide 19: Accelerating the energy transition

    CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE Accelerating the energy transition  As the leading lender to the French economy, Crédit Agricole is fully aware of the major role we play in France’s energy transition.  Crédit Agricole is a major player in energy transition financing. Than

  20. Slide 20: A long-standing commitment across all business lines

    CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE A long-standing commitment applied across all business lines 2018 In November, Crédit Agricole’s Green Bond 2017 Committed to COP23 with five objectives: • €100 billion in new green financing by 2020 • One third of renewable energy and energy

  21. Slide 21: A 4-tier climate and environment strategy

    CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE A A4-Tier Climate and Environment Strategy  Systematic ESG evaluation in financing large clients and gradual 1 inclusion of ESG risks in credit analysis for mid-caps and SMEs  Measurement of indirect carbon footprint related to loans and TA

  22. Slide 22: Climate objectives

    CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE Climate objectives  ROADMAP UNVEILED DURING THE COP21 CLIMATE CONFERENCE AND BROADENED IN 2017 au 31/12/2017 au 31/12/2017 203 71 Mds€ Mds€ au 31/12/2017 635 Mds€ 22 l Green Bond – November 2018

  23. Slide 23: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  24. Slide 24: Aligned with the Green Bond Principles

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Aligned with the Green Bond Principles  Crédit Agricole’s Green Bond Framework is aligned with the Green Bond Principles in its 2018 edition and its four core components:  Eligible projects categories:  Eligible Green Assets comply with Crédit Agricole 

  25. Slide 25: Use of Proceeds (1/4)

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Process for Use of Proceeds (1/4) Project Evaluation and Selection Reporting Management of Proceeds Project category Eligibility criteria 1. Renewable energy Environmental benefits: climate change mitigation Main objectives: GHG emissions reduction Loans to

  26. Slide 26: Use of Proceeds (2/4)

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Process for Use of Proceeds (2/4) Project Evaluation and Selection Reporting Management of Proceeds Project category Eligibility criteria 3. Energy efficiency Environmental benefits: climate change mitigation Main objectives: GHG emissions reduction Loans t

  27. Slide 27: Use of Proceeds (3/4)

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Process for Use of Proceeds (3/4) Project Evaluation and Selection Reporting Management of Proceeds Project category Eligibility criteria 4. Clean transportation Environmental benefits: climate change mitigation Main objectives: GHG emissions reduction Loan

  28. Slide 28: Use of Proceeds (4/4)

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Process for Use of Proceeds (4/4) Project Evaluation and Selection Reporting Management of Proceeds Project category Eligibility criteria 5. Water and waste management Environmental benefits: climate change mitigation; pollution Main objectives: flood preve

  29. Slide 29: Process for project evaluation and selection

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Use of Process for Project Evaluation and Selection Proceeds CSR and dedicated Sector Policies Green Bond Committee Reporting Management Sector Policies Green Portfolio assets selection of Proceeds  Weapons  The relevant entities of the Group carry out a

  30. Slide 30: Management of proceeds

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Use of Process for Management of Proceeds Proceeds Project Evaluation and Selection Green Portfolio management Reporting  Crédit Agricole Treasury and MLT Funding team is responsible for monitoring the allocation of funds towards Eligible Green Assets in a

  31. Slide 31: Green Portfolio overview

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Portfolio overview Breakdown by subsidiaries Breakdown by regions Breakdown by eligible categories Energy Water & waste efficiency Leasing & Factoring 3% LCL 2% management 5% Asia 6% Others 1% 2% Clean Regional transportation banks 24% Americas 13% 20

  32. Slide 32: Focus on renewable energy portfolio in France

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Focus on renewable energy portfolio in France Solar Wind Biomass Hauts de Hauts de Hauts de France France France 2% 8% 2% Normandie Normandie Normandie Grand Est Île-de-France Grand Est Île-de-France Grand Est Île-de-France 2% 3% 35% 4% 0.2% 1% 9% 8% 43% Br

  33. Slide 33: Reporting

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Use of Process for Reporting Proceeds Project Evaluation and Selection  Crédit Agricole will publish an annual report on its website detailing: Reporting Management of Proceeds  The allocation of the net proceeds of the Green Bond  The environmental impa

  34. Slide 34: Second-Party Opinion & External review

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Second-Party Opinion & External review Second-Party Opinion  Crédit Agricole Green Bond Framework Second Party Opinion from Vigeo Eiris is publicly available on Crédit Agricole S.A. website. “Vigeo Eiris is of the opinion that the Bond considered to be iss

  35. Slide 35: Green Asset: methanation unit

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: methanation unit METHANGRI 32  Asset: methanation unit  Location: Pellefigue, Occitanie  Amount: EUR 6.2m  Total project cost: EUR 10m  Description: construction of a new methanation unit combining a cogeneration power plant with a total c

  36. Slide 36: Green Asset: biomass plant in Martinique

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: biomass plant in Martinique GALION 2  Asset: 100% bagasse/biomass plant  Location: Martinique  Amount: EUR 210m (total project cost)  Description: construction of the first 100% bagasse/biomass plan (40 MW) in the French overseas regions. T

  37. Slide 37: Green Asset: marine energy exploitation

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: marine energy exploitation SABELLA D10  Asset: marine energy production unit  Location: Ouessant Island  Amount: EUR 12m (total project cost)  Description: located in Quimper, Sabella, a flagship in tidal energy technologies founded in 2008

  38. Slide 38: Green Asset: photovoltaic panels on hangars

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: photovoltaic panels on agricultural and industrial hangars CAP SUD  Asset: photovoltaic power plants installed on agricultural and industrial hangars  Location: South of France  Amount: EUR 15.2m (total project cost)  Description: Credit Ag

  39. Slide 39: Green Asset: example of Green Building

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: example of Green Building OSMOSE  Asset: 16,000 sqm new office building  Location: Arcueil, Île-de-France  Amount: EUR 38m  Description: The architectural vocabulary employs a limited palette of 3 materials including aluminum, large format

  40. Slide 40: Green Asset: photovoltaic power plants

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: photovoltaic power plants Phoenix III  Asset: portfolio of 298 photovoltaic power plants (68.4 MW)  Location: throughout France including 30 in Region Provence-Alpes- Cote d'Azur  Amount: EUR 250m (50% refinanced by Crédit Agricole Group) 

  41. Slide 41: Green Asset: example of Green Building

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Green Asset: example of Green Building GREEN LOAN  Asset: new office building portfolio  Location: France  Amount: EUR 10m  Description: the proceeds will be used for the acquisition of new office buildings in France with a high environmental performanc

  42. Slide 42: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  43. Slide 43: Termsheet – Inaugural Credit Agricole Green Bond

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Termsheet – Inaugural Credit Agricole Green Bond All terms and conditions contained herein are subject to and will be superseded by final documentation. Any word or expression beginning by a capital letter shall have the same meaning as in the Documentation

  44. Slide 44: Contents

    CONTENTS 1. CREDIT AGRICOLE GROUP AT A GLANCE 2. FINANCIAL MANAGEMENT 3. CSR, A FACTOR OF SUSTAINABLE PERFORMANCE FOR CRÉDIT AGRICOLE GROUP 4. CREDIT AGRICOLE GROUP AT THE FOREFRONT OF CLIMATE FINANCE 5. CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK 6. TERMSHEET – INAUGURAL CREDIT AGRICOLE GREEN BOND 7

  45. Slide 45: Group structure

    GROUP STRUCTURE Crédit Agricole Mutual Group: customer-focused universal banking model Crédit Agricole S.A. Four business lines 9.7 m(2) mutual shareholders Public (of which 4.0% employees Asset Gathering : Amundi, 2,447(2) Local Credit Co-operatives and 0.1% treasury shares) CAA, Indosuez Wealth Ma

  46. Slide 46: Internal support mechanisms

    GROUP STRUCTURE Internal support mechanisms Crédit Agricole S.A. obligations under the Financial & Monetary Code Reciprocal binding Crédit Agricole S.A., as the Central Body and as a member of the Crédit Agricole Network commitments between the  is required (cf. Article L511-31) to take all necessa

  47. Slide 47: Key liquidity indicators

    FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP Key liquidity indicators CRÉDIT AGRICOLE S.A. Regulatory Ratio at 2016-2019 requirement 30/09/2018 MTP Target  LCR: the aim of the Group is to secure its compliance with regulatory requirements by Avg. over 12 months: maintaining a buffer of a magnitude of

  48. Slide 48: Liquidity and funding

    FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP Liquidity and funding Liquidity reserves at 30/09/18 (€bn) 262 Assets eligible to Central Banks after ECB 48 221 haircut (immediate access) Reverse repos & other ST 19 11 Self-securitisations eligible to Central Banks 19 Other non-HQLA securities (1) 121 €2

  49. Slide 49: Strong cash balance sheet

    FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP Strong cash balance sheet Banking cash balance sheet at 30/09/18 (€bn) ASSETS LIABILITIES 1,191 1,210 Surplus: 1,210 1,191 Cash & central bank deposits (incl. mandatory reserves) 70 81 €111bn 118 117 Interbank assets 11 19 8 ST m arket funds Reverse repos (

  50. Slide 50: Breakdown of MLT market funds outstanding

    FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP Breakdown of MLT market funds outstanding MLT market funds outstanding at 30/09/18 (€bn) 30/06/18 30/09/18 76 80 Senior secured €198bn €202bn 88 Senior preferred 88 12 Senior non-preferred 13 Tier 2 (1) 90 20 19 2 Tier 1 (1) 2 5 AT1 5 4 (1) Notional amount

  51. Slide 51: Q3 & 9M-18 highlights: Crédit Agricole in Italy

    CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE GROUP Q3 & 9M-18 HIGHLIGHTS Crédit Agricole in Italy – A group of profitable and developing activities Crédit Agricole Group in Italy Change in NPL and coverage ratio (Group in Italy)  A comprehensive and profitable customer-focused universal model 69.2% +18pp 

  52. Slide 52: Impact Reporting indicators

    CREDIT AGRICOLE GROUP GREEN BOND FRAMEWORK Impact Reporting indicators Eligible Category Output indicators Impact indicators  Capacity installed (MW) Renewable energy  Expected renewable energy generation (MWh/year)  Commercial real estate assets by certification type (%) and year of certificatio

  53. Slide 53: Contact list

    CONTACT LIST: Olivier Bélorgey + 33 1 57 87 19 24 olivier.belorgey@ca-cib.com Chief Financial Officer, CACIB and Group Head of Treasury and Funding, Crédit Agricole Group Eric Campos +33 1 43 23 58 78 eric.campos@credit-agricole-sa.fr Head of Corporate Social Responsibility at Crédit Agricole SA CEO

Crédit Agricole — Debt Investor Presentation (November 2018) on 6ix