Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Non-Deal Roadshow (November 2017)
24 slides from Credit Agricole SA's roadshow presentation, November 2017
Slide 1: Roadshow Presentation
Roadshow Presentation November 2017 1 l ROADSHOW PRESENTATION – NOVEMBER 2017
Slide 2: Disclaimer
DISCLAIMER Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months period 2017 comprises this presentation and the attached press release and financial report which are available on the website https://www.credit- NOTE agricole.com/en/fin
Slide 3: Introduction: Major achievements in 2016 and 2017
CRÉDIT AGRICOLE S.A. INTRODUCTION Major achievements in 2016 and 2017 New Medium Term Plan announced in March 2016: “Strategic Ambition 2020” Focus on Group structure simplification, customer project, growth momentum via cross selling and enhanced operating efficiency Completion of the Group s
Slide 4: Major achievements: Value-creating acquisitions
CRÉDIT AGRICOLE S.A. MAJOR ACHIEVEMENTS IN THE PAST 18 MONTHS Value-creating acquisitions Pioneer investments (closed 3 July 2017) Acquisition by Amundi of 100% of Pioneer Investments (1), Unicredit’s AM subsidiary, for €3,545m Strong synergy potential – €180m before tax – thanks to Amundi’s d
Slide 5: Major achievements: Disposal of non-core assets
CRÉDIT AGRICOLE S.A. MAJOR ACHIEVEMENTS IN THE PAST 18 MONTHS Disposal of non-core assets Disposal of interest in Eurazeo (6 June 2017) Disposal of a 15.42% interest in the listed holding company for a total of €790.5m Hedging mechanism against changes in share price for mandatory convertibles
Slide 6: Zoom on Pioneer transaction
CRÉDIT AGRICOLE GROUP ZOOM ON PIONEER TRANSACTION Integration of Pioneer Investments on 3 July 2017 Amundi-Pioneer : AuM of €1,400bn, 9th asset manager worldwide, No.1 in Europe(1) Leadership strengthened A customer mix A full range of expertise Strong first results in Europe(2) thanks rebalanced re
Slide 7: Zoom on acquisition in Italy
CRÉDIT AGRICOLE GROUP ZOOM ON ACQUISITION IN ITALY Acquisition of three regional banks in Italy enabling a 20% growth of the franchise Market shares in Italy post transaction A transaction based on 3 strategic pillars (closing expected in Q4-17) +1pp Increased size of the Group in Italy to reach
Slide 8: Strong profit momentum: Zoom on Crédit Agricole S.A. in Italy
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Zoom on Crédit Agricole S.A. in Italy Aggregation of underlying results(1) of Crédit Agricole S.A. entities in Italy(2) Q3-17 ∆ Q3/Q3 9M-17 ∆ 9M/9M €m underlying underlying sous-jacent sous-jacent Revenues 847 +13.7% 2,395 +6.5% 12% Operating expenses excl
Slide 9: A stable, diversified and profitable business model
CRÉDIT AGRICOLE S.A. RESULTS A stable, diversified and profitable business model 9M/9M earnings growth in all business lines Good level of diversification in terms of business lines' contribution to Group NIGS(1), with no business line accounting for more than 30% of NIGS (excl. Corporate Centre
Slide 10: Sustained activity in all businesses
CRÉDIT AGRICOLE GROUP STRONG PROFIT MOMENTUM Sustained activity in all businesses RETAIL BANKS Regional Banks LCL Italy Home loans +8.0% Home loans +9.6% Home loans +9.9% Consumer finance loans +8.2% Loans to corporates +11.3% Loans to large corporates +2.8% Demand deposits +17.3% Demand deposits +1
Slide 11: Sustained increase in revenues
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Sustained increase in revenues Change 9M/9M in underlying revenues(1), by division +7.9% +521 13,962 13,983 +20 +19 +86 +141 +8% 12,275 (667) 12,943 +253 Increase in underlying revenues(1) 9M/9M 9M-16 Specific (1) 9M-16 Asset Retail SFS Large Corporate 9M-
Slide 12: Costs well under control
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Costs well under control Change in underlying(1) costs 9M/9M by division +2.4% 8,935 +1% 8,713 +41 +240 8,433 +218 (59) +15 +30 (3) 8,635 +242 +59 increase in underlying costs(1) excl. SRF and at constant scope(4) 9M/9M (1) (1) 9M-16 Specific SRF 9M-16 Ass
Slide 13: Declining and sustainable cost of risk
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Declining and sustainable cost of risk CRÉDIT AGRICOLE GROUP Cost of credit risk on outstandings (in basis points over a rolling four-quarter period) 201 162 140 133 134 140 134 Target 2019: 50bp 123 116 CACF 130 43 -18bp Q3/Q3 41 117 41 41 41 113 108 39
Slide 14: Strong increase in underlying NIGS
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Strong increase in underlying NIGS Change 9M/9M in underlying NIGS(1), by division 3,249 +36.6% 3,262 +422 3,048 +214 +70 +1,018 +140 2,232 +106 +79 +37% increase in underlying NIGS(1) 9M/9M (1) (1) 9M-16 Specific 9M-16 Asset Retail SFS Large Corporate 9M-
Slide 15: Business lines highlights
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM Business lines highlights Revenues 2019 RoNE Asset gathering 2015-2019 CAGR: +3% Retail Banking > 16% NIGS: +8.4%(1) 9M/9M NIGS: +14.1%(1) 9M/9M Asset management: first-time contribution from Pioneer (AuM of LCL (+22.8%): strong performances (loans out
Slide 16: A stable, diversified and profitable business model
CRÉDIT AGRICOLE S.A. STRONG PROFIT MOMENTUM A stable, diversified and profitable business model Underlying RoNE(2) (annualised) 9M-17 by business line and 2019 targets in %(2) After tax and AT1 coupons allocated to business lines(2) Target 2019 >25% Underlying FY-2016 Underlying 9M-17 annualised >16
Slide 17: Fully-loaded CET1 ratio close to 12% pro forma
CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Fully-loaded CET1 ratio close to 12% pro forma, well above target of 11% Change in fully-loaded CET 1 ratio (bp) Change in RWAs (€bn) +72bp +18bp 12.0% 11.9% 306 301 301 301 300 +2bp 296 294 294 293 +82bp -41bp -5bp 10.7% -10bp -10 Eurazeo +13bp Pioneer -71bp
Slide 18: Capital planning
CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Capital planning Trajectory of CET1 fully-loaded ratio until end of MTP +2.6pp 11.9% MTP targets: -1.4pp ≥ 11% -0.7pp -0.7pp -0.7pp Net income and dividend impacts: 11% company-collected CASA fully-loaded CET1 ratio consensus, adjusted for the 12.0% at end-Sep
Slide 19: Attractive dividend policy
FINANCIAL SOLIDITY Attractive dividend policy Reminder: dividend 2016 €0.60(1) i.e. a yield of 5.1%(1) based on 31 December 2016 share price From 2017 onwards Dividend payout of 50% of attributable net income(2) Cash only Intention not to lower dividend compared to 2016 level (€0.60 floo
Slide 20: Conclusion: Key messages
CRÉDIT AGRICOLE S.A. CONCLUSION Key messages Cross-selling strategy accelerated Profitable and sustainable business model, with growth in Crédit Agricole S.A.’s specialised entities underpinned by the Group retail banks’ distribution capacity Targeted acquisition strategy in Italy aimed at enh
Slide 21: Simplification of the Group structure
CRÉDIT AGRICOLE S.A. APPENDIX Simplification of the Group structure Former Group structure New Group structure Local Banks of Holders Local Banks of Holders SACAM Crédit Agricole and of Crédit Agricole and of Mutualisation other members CCI/CCAs other members CCI/CCAs Mutual shares (with voting righ
Slide 22: Data per share
CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q3-17 Q3-16 9M-17 9M-16 Net income Group share 1,066 1,864 3,262 3,249 €0.31 - Interests on AT1, before tax, including issuance costs (92) (97) (329) (338) Net income Group share attributable to ordinary shares [A] 974 1,767 2,933 2,911 Average numbe
Slide 23: Alternative Performance Measures – Specific items
CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures– Specific items Q3-17 and 9M-17 Q3-17 Q3-16 9M-17 9M-16 €m Gross impact Impact on NIGS Gross impact Impact on NIGS Gross impact Impact on NIGS Gross impact Impact on NIGS Issuer spreads (CC) (16) (14) (281) (178) (121) (69) (243) (151) D
Slide 24: Investor Relations Contacts
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS: Institutional shareholders + 33 1 43 23 04 31 investor.relations@credit-agricole-sa.fr Individual shareholders + 33 800 000 777 credit-agricole-sa@relations-actionnaires.com (toll-free number France only) Cyril Meilland, CFA + 33 1 43 23 53 82 cyril.