Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Merger or Acquisition (January 2009)
28 slides from Credit Agricole SA's merger presentation, Jan 26, 2009
Slide 1: Combination of CAAM and SGAM: The Creation of a Leading European Asset Manager
Combination of CAAM and SGAM: "The Creation of a Leading European Asset Manager" Paris, January 26, 2009
Slide 2: Disclaimer
Disclaimer This presentation contains forecasts based on current opinions and hypotheses relating to negotiations between Crédit Agricole S.A. and Société Générale that have not yet been finalised and future events. These forecasts comprise projections and financial estimates based on hypotheses and
Slide 3: Agenda
Agenda Creation of a Global Leader in Asset Management An Ambitious and Differentiating Industrial Project A Value-Creating Transaction Conclusion Project, subject to presentation to staff representative bodies and validation by the regulatory authorities – CONFIDENTIAL 2
Slide 4: Agenda
Agenda Creation of a Global Leader in Asset Management An Ambitious and Differentiating Industrial Project A Value-Creating Transaction Conclusion Project, subject to presentation to staff representative bodies and validation by the regulatory authorities – CONFIDENTIAL 3
Slide 5: Creation of the 4th Largest Asset Manager in Europe
European Asset Manager Creation of the 4th Largest Asset Manager in Europe American Asset Manager (EURbn) 1,400 1,217 1,210 1,200 1,149 998 1,000 896 815 800 760 754 721 (2) 719 641 614 599 600 638 556 510 481 464 460 450 429 400 367 367 (2) 261 200 178 0 n rd up AM l a y n nz on I AM is G t M AM nk
Slide 6: By Combining the Asset Management Divisions of Two Major Groups
…By Combining the Asset Management Divisions of Two Major Groups Assets contributed by SGAM: • SGAM's European and Asian asset management businesses • Etoile Gestion (which serves the Crédit du Nord network) • 20% stake in TCW (US) Scope of the new entity (1): EUR 638 bn of AuM excluding TCW CAAM –
Slide 7: Overview of the Proposed Transaction
Overview of the Proposed Transaction Shareholding • 70% Crédit Agricole S.A. Structure of the New Entity • 30% Société Générale • Société Générale will hold a third of the seats on the new entity's Board of Directors • Crédit Agricole will nominate the Chairman of the Board of Directors and Société
Slide 8: A Balanced Client Base
A Balanced Client Base Total: EUR 460 bn(1) Total: EUR 178 bn(1) Institutional Institutional Retail(1) + 23% 32% 68% 77% Retail(1) = 30% Institutional Total: EUR 638 bn 70% Retail(1) (1) Insurance business is included in retail, of which EUR 167 bn for Predica and EUR 40 bn for Sogécap Project, subj
Slide 9: Agenda
Agenda Creation of a Global Leader in Asset Management An Ambitious and Differentiating Industrial Project A Value-Creating Transaction Conclusion Project, subject to presentation to staff representative bodies and validation by the regulatory authorities – CONFIDENTIAL 8
Slide 10: A Positive Outlook for Asset Managers Who Are Able to Adapt
A Positive Outlook for Asset Managers Who Are Able to Adapt A challenging environment But a positive medium to long-term outlook Secular growth trends in the industry, in particular thanks to 1 demographic changes • Shrinking personal savings volumes 2 An industry benefiting from economies of scale
Slide 11: A Differentiating Industrial Project
A Differentiating Industrial Project CAAM – SGAM A Global Asset Manager A A leader in comprehensive Wide terms of product offering geographic operational adapted to each coverage efficiency client segment An industrial model adapted to new market trends Project, subject to presentation to staff repr
Slide 12: Retail Networks: a Comprehensive Product Offering
Retail Networks: a Comprehensive Product Offering • A comprehensive product range (mutual funds, guaranteed funds, discretionary management…) Innovative, Simple and • Solutions suited to market trends and to diverse client profiles in the various networks (e.g. large range of guaranteed or protected
Slide 13: Retail Networks: a Proven Multi-Network Asset Management Expertise
Retail Networks: a Proven Multi-Network Asset Management Expertise • 20 million retail clients • Four networks with complementary positionings • 6 million retail clients • Product range suited to the needs of retail clients • Traditional management (equities, • 8 million retail clients fixed income
Slide 14: Retail Networks: a Flexible Platform Organised around Dedicated Structures
Retail Networks: a Flexible Platform Organised around Dedicated Structures Retail banking networks Networks Future network(s) Structure Structure Structure Structure dedicated Structure(s) Dedicated dedicated to dedicated to SG dedicated to LCL to Caisses dedicated to Network Crédit du Nord network
Slide 15: Institutional Clients: Increased Competitiveness
Institutional Clients: Increased Competitiveness… An already solid base with 4 hubs providing complementary expertises managed through a “multi-boutique” approach: • Paris / London: European Fixed Income, European Strengthen Performance Areas Equities, Global Fixed Income, Credit Already well Establ
Slide 16: Leverage on First Class, Complementary and Diversified Expertise
… Leverage on First Class, Complementary and Diversified Expertise… • More than EUR 190bn of funds managed on behalf of institutional clients worldwide, of which 40% outside of A Well Established France Global Positioning • Around 2,500 institutional clients • Across all asset classes (equities, fix
Slide 17: With Performance
… With Performance Euro Global US Fixed Income Fixed Income Fixed Income Global Leader in Fixed Income 2007 Manager of the Top 3 Top 3 Year European European (Morningstar) Equities Europe Equities Japan Equities Asia / Emerging markets Strong Equities Recognized stock - 2 Awards / 7 Certificates A G
Slide 18: A Strong Potential for Cross-Selling: Example TCW
An Strong Potential for Cross-Selling Example: TCW A minority stake in TCW and distribution agreements strengthening cross- selling opportunities TCW Key strengths Breakdown of TCW's AuMs – September 2008 By Asset Class A very strong brand in the United States Alternative International Investments 4
Slide 19: Wide Coverage of the Main Asset Pools
Wide Coverage of the Main Asset Pools Production/ distribution centres Distribution centres only (own + networks) Worldwide manufacturing and distribution capabilities Europe EUR 589 bn United States Asia EUR 93 bn(1) EUR 39 bn AA presence presence in
Slide 20: Strong Growth Potential Thanks to a Very Good Positioning in High-Growth Areas
Strong Growth Potential Thanks to a Very Good Positioning in High-Growth Areas A strong positioning in high-growth areas Mature markets with Emerging Emergingmarkets market stable growth countries with a strong with very (5 to 10%) large development development potential (> 20%)
Slide 21: An Innovative Industrial Model Generating Synergies Across Client Bases
An Innovative Industrial Model Generating Synergies Across Client Bases Retail Banking Networks Institutional Investors Future Networks networks Dedicated Sales forces Network dedicated platforms Network (37 countries, ~350 sales & marketing, Structures of which 250 abroad) Core Low-Cost • Satellite
Slide 22: A Market Leader in Terms of Operating Efficiency
A Market Leader in Terms of Operating Efficiency An integrated model that will further improve service quality and product performance to the various customer bases Production costs that are already amongst the lowest in the market and will be further lowered thanks to the merger A strategy and orga
Slide 23: Agenda
Agenda Creation of a Global Leader in Asset Management An Ambitious and Differentiating Industrial Project A Value-Creating Transaction Conclusion Project, subject to presentation to staff representative bodies and validation by the regulatory authorities – CONFIDENTIAL 22
Slide 24: A Profitable Player
A Profitable Player Annualized pro-forma financials CAAM SGAM scope(3) Combined entity based on figures as of 30/09 (1) AuM AuM EUR EUR 460 460 bn bn + EUR EUR 178 178 bn bn = EUR EUR 638 638 bn bn NBI NBI(2) (2) EUR EUR 1.3 1.3 bn bn EUR EUR 0.5 0.5 bn bn EUR EUR 1.8 1.8 bn bn + = GOI GOI(2) (2) EU
Slide 25: A Value Enhancing Transaction for Both Shareholders
A Value Enhancing Transaction for Both Shareholders • Cost synergies estimated at around EUR 120 million, before tax, on a full-year basis (after EUR 120 m 3 years) of Cost Synergies • Alignment of SGAM's cost/income ratio with that of CAAM • These synergies will be achieved by merging local platfor
Slide 26: Agenda
Agenda Creation of a Global Leader in Asset Management An Ambitious and Differentiating Industrial Project A Value-Creating Transaction Conclusion Project, subject to presentation to staff representative bodies and validation by the regulatory authorities – CONFIDENTIAL 25
Slide 27: Conclusion
Conclusion • A solid and well-structured industrial project, which will create: –The 4th largest European asset manager and the 9th largest on a global basis –The reference partner for savings solutions distributed by Crédit Agricole and Société Générale‘s retail networks –A multi-specialist asset m
Slide 28: Timetable – Next Steps
Timetable – Next Steps • The operation is still subject to: – Consultation of both Groups' Employee Representative Bodies – Authorisation by the competition and regulatory authorities, in particular for the various international platforms – The consent of the various joint-venture partners • Closing
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