investor day - accueil - groupe bpce · investor day: 2018-2020 strategic plan november 29, 2017 18...

NOVEMBER 29, 2017

INVESTOR DAY Presentation of the Strategic Plan 2018-2020

AGENDA

NOVEMBER 29, 2017 INVESTOR DAY: 2018-2020 STRATEGIC PLAN 2

MARGUERITE BRARD-ANDRIEU Group Finance, Strategy, Legal Affairs, Secretarys Office of the Supervisory Board

STRATEGIC CONVICTIONS

STRATEGIC GUIDELINES 2018-2020

FINANCIAL TRAJECTORY

CATHERINE HALBERSTADT Human Resources, Internal Corporate Communications, Corporate Secretarys Office of BPCE SA

JACQUES BEYSSADE Risks, Compliance, Permanent Control

FRANOIS PROL

YVES TYRODE Digital

LAURENT MIGNON Natixis

JEAN-YVES FOREL Transformation and Operational Excellence

LAURENT ROUBIN Commercial Banking and Insurance

QUESTIONS & ANSWERS

QUESTIONS & ANSWERS WITH THE MEMBERS OF THE EXECUTIVE MANAGEMENT COMMITTEE

14:00 14:40 14:40 15:45 15:45 16:00 16:00 17:00


STRATEGIC CONVICTIONS


OUR FIRST TWO STRATEGIC PLANS ALLOWED THE CONSTRUCTION, RECOVERY AND THEN DEVELOPMENT OF THE GROUP

FOCUS of allocated resources on the customer-driven activities of our banking and insurance businesses

REDUCTION in the level of RISK

SYNERGIES in revenues and costs

SIMPLIFICATION of the Groups structure

SOLVENCY and LIQUIDITY strengthened

Enhanced market share in RETAIL BANKING

Success in INVESTMENT SOLUTIONS, PRIVATE BANKING, and ASSET MANAGEMENT

Creation of an integrated INSURANCE platform

INTERNATIONAL development of Natixis

Launch of the Groups DIGITAL TRANSFORMATION

SOLVENCY and LIQUIDITY strengthened

2014 - 2017 2010 - 2013 2014 - 2017 Another way to grow


GROWING BUSINESSES Retail Banking (1/2)

LOANS (outstandings in bn)

DEPOSITS & SAVINGS (outstandings in bn)

NUMBER OF ACTIVE CUSTOMERS (in millions)

5.3 (+5% vs. 2013)

252 (+22% vs. 2013)

193 (+16% vs. 2013)

10.5 (+2% vs. 2013)

411 (+11% vs. 2013)

249 (+24% vs. 2013)

(1) For the BP: TNS 2017 figures for SMEs, 2016 CSA Research for professional customers; for the CE: Banque de France figures and documents published by the banks (2) Banque de France data at June 30, 2017

September 30, 2017 figures

GROUPE BPCE: MARKET SHARE IN FRANCE

BANK DEPOSITS & SAVINGS2

21.7%

CUSTOMER LOANS2

21.0% REAL-ESTATE LOANS2

26.3% 25.4%

2013 2017-Q2

HOUSEHOLD SHORT-TERM CREDIT FACILITIES2

17.0% 15.2%

2013 2017-Q2

+ 0.9 pt

+ 1.8 pt

No.1 in the SME market1

No.2 in the professional and micro-company market1

No.1 in the local authority and social housing market1

No.2 in the individual customer market1


GROWING BUSINESSES Retail Banking (2/2)

SPECIALIZED FINANCIAL SERVICES

(1) 2017 estimate based on 9M + [Q4=Q3] (2) Source: Association des Socits Financires (3) Direct sales; source: FFA

FACTORING2

18.5% 15.1%

2013 2017-Q2

+ 3.4 pt

INSURANCE Market share

LIFE INSURANCE3

CAR INSURANCE

2.8% 7%

X 2.5

0.7% 2.1%

X 3

COMPREHENSIVE HOME INSURANCE

1.0% 4.2%

X 4.2

2013

2013

2013

2017-Q3

2017-Q3

2017-Q3

+27%

LEASING New production (in bn)

2.6 3.3

2013 2017 1

Market share

+73%

SURETIES & FINANCIAL GUARANTEES Premiums issued (in m)

320 554

2013 2017 1


GROWING BUSINESSES Asset & Wealth Management and Corporate & Investment Banking

A WORLD LEADER IN ACTIVE ASSET MANAGEMENT

More than 20 independently managed affiliates A worldwide, centralized and highly efficient distribution platform Priority given to alpha creation

AN INNOVATIVE AND TAILOR-MADE OFFERING

A solutions house for corporates and investors Premiumization of the strategic dialog International expansion through three platforms:

EMEA, Americas and APAC

Global asset manager based on asset under management1

ASSETS UNDER MANAGEMENT (End of period, in bn)

629 813

2013 Q3-2017

FEES / GLOBAL FINANCE NET BANKING INCOME

2013 9M-2017

38% 30%

PLATFORM REVENUES CAGR 2013 - 2017

+15% AMRIQUES APAC

+23%

ASSET & WEALTH MANAGEMENT CORPORATE & INVESTMENT BANKING

The most innovative investment bank in 2017 in the equity derivatives market3

NET BANKING INCOME (in bn)

MARGIN ON OUTSTANDINGS (in bps)

2.0 3.0

2013 2017 2

NET BANKING INCOME (in bn)

38% of CIB Net Banking

Income 20172

M&A ranking in France in number of transactions4

28.8 25.4

2013 9M-2017

(1) Source: Cerulli Associates: 2017 Global Markets report, based on outstandings at end-2016

No.15 Global asset manager based on revenues1

No.10 No.4

+11% p.a

+6% p.a

2.9 3.6

2013 2017 2

(2) Estimate for the 2017 financial year based on 9M + [Q4=Q3] results (3) Source: The Banker Investment Banking Awards

2017 (4) Source: MergerMarket at Sept. 30, 2017

NETWORKS: +2%

SFS: +10%

INSURANCE: +11%

NETWORKS:

STABLE

SFS:

+3%

INSURANCE: +14%


A DIVERSIFIED UNIVERSAL BANKING MODEL

23.0bn

18.9bn

CORPORATE & INVESTMENT

BANKING

ASSET & WEALTH MANAGEMENT

RETAIL BANKING

(1) Excluding non-economic and exceptional items

2009

+ 10%

+ 11%

+ 2%

+ 6%

+ 3%

2013 2016

21.5bn

+ 1%

GROWTH IN THE NET BANKING INCOME GENERATED BY THE BUSINESS LINES1

SUCCESSFUL DELIVERY OF THE STRATEGIC PLAN:


Leading positions in interpersonal and digital customer relations

Attracting new customers & cross-selling

+728,000 principal customers using banking services aged 25+

2017 TARGET

+1m > 80%

2017 TARGET 2017 TARGET

> 80% of the product range subscribable electronically

Results achieved as at September 30, 2017

(1/4) Another way to grow

Rolling out of the electronic signature

83% of sales signed electronically(1)

Strengthening of customer relations and digital services

78% of our customers subscribing for online banking services

(1) Sales in the first 9 months of 2017

SUCCESSFUL DELIVERY OF THE STRATEGIC PLAN:


(1) Net inflows of Natixis from December 31, 2013 to December 30, 2017 (2) on a constant basis of comparison (3) At September 30, 2017 (4) 9M-2017

Growth of the core business lines

(2/4) Another way to grow

Major player in investment solutions Creation of an integrated insurance platform

International development of Natixis

ASSETS UNDER MANAGEMENT FROM PRIVATE BANKING CUSTOMERS (in bn)

NET NEW ASSET MANAGEMENT INFLOWS (in bn)

NET INFLOW TARGET

of customers provided with non-life insurance(3)

26%

of the net banking income from the core business lines generated in the international market(4)

48% 155 191

CAGR +5.8%

6% > 50%

CAGR TARGET

75bn

2017 TARGET 2017 TARGET

28%

2013 Q3-2017

+65bn(1)

(2)


A large number of major rationalization projects successfully completed

Pooling of IT PRODUCTION FACILITIES

Absorption of 8 entities

Creation of a PAYMENTS business line

IPO of COFACE

Creation of

SUCCESSFUL DELIVERY OF THE STRATEGIC PLAN: (3/4) Another way to grow

4 mergers completed involving 12 regional banks

MERGERS

3 mergers in progress (CE Alsace-Lorraine-Champagne-Ardenne, BP Grand Ouest, Crdit Maritime), involving 8 entities


Synergy targets achieved

SUCCESSFUL DELIVERY OF THE STRATEGIC PLAN: (4/4) Another way to grow

REVENUE SYNERGIES

COST SYNERGIES

in additional revenues generated between Natixis and the retail banking networks

780m

Major contributions from insurance and specialized financial services

in cost synergies 863m

Pooling of Information Systems

Procurement Real-estate optimization

198

410

623

217

435

652

Target

Achieved

at Sept. 30, 2017

2017 2015 2016 2014

218

451

686

217

435

653

2017 2015 2016 2014

Target

Achieved

900

870

at Sept. 30, 2017


A ROBUST FINANCIAL STRUCTURE One of the strongest solvency increase in Europe

-1,0%

0,0%

+1,0%

+2,0%

+3,0%

+4,0%

+5,0%

+6,0%

+7,0%

20% 13% 12% 19% 15% 14% 11% 10% 18%

Lloyds Banking Group

Crdit Suisse

AVERAGE = 13.8%

AVERAGE = +3.1%

FULLY LOADED CET1 RATIO

AT JUNE 30, 2017

INCREASE IN THE CET1 RATIO BETWEEN END-2013 AND MID-2017 (*)

ABN Amro, Barclays, BBVA, BNP Paribas, CaixaBank, Commerzbank, Groupe Crdit Agricole, Crdit Mutuel, Credit Suisse, Deutsche Bank, Groupe BPCE, HSBC,

ING Group, Intesa Sanpaolo, Lloyds Banking Group, Nordea, Rabobank, RBS, Santander, Socit Gnrale, UBS, UniCredit - (*) Fully-loaded ratio

INCREASE IN THE CET1 RATIO DRIVEN BY RETAINED EARNINGS:

>70 bps/year

ABN Amro, Barclays, BBVA, BNP Paribas, CaixaBank, Commerzbank, Groupe Crdit Agricole, Crdit Mutuel, Credit Suisse, Deutsche Bank, Groupe BPCE, HSBC,

ING Group, Intesa Sanpaolo, Lloyds Banking Group, Nordea, Rabobank, RBS, Santander, Socit Gnrale, UBS, UniCredit

AA-

A+

A

A-

BBB+

BBB

BBB-

AVERAGE = 13.8%

FULLY-LOADED

CET1 RATIO

AT JUNE 30, 2017

NOVEMBER 29, 2017 14

A ROBUST FINANCIAL STRUCTURE One of the highest credit ratings in Europe

STANDARD & POORS LONG-TERM RATING (OCTOBER 2017) Credit rating outlook revised upwards from STABLE to POSITIVE

(October 20, 2017)

(July 26, 2017)

20% 13% 12% 19% 15% 14% 11% 10% 18%

INVESTOR DAY: 2018-2020 STRATEGIC PLAN

COMMITTED TEAMS


Key findings of the Group survey carried out among 80,000 employees (*)

HIGH LEVEL OF EMPLOYEE COMMITMENT

2017 2014

69% 70% 70%

2017 2014

74% 78%

72%

2017 2014

75% 77%

2014

81% 88%

72%

* Diapason survey response rate of 70%

External Bank Finance Insurance Benchmark

SUPPORT FOR THE GROUPS CORPORATE STRATEGY

PRIDE IN AND ATTACHMENT TO THE VALUES OF THE GROUPS COMPANIES

DEGREE OF UNDERSTANDING OF THE ONGOING TRANSFORMATION

2017

+ 2 pts + 1 pt + 4 pts + 7 pts


THE GROUP IS MORE

DYNAMIC

PERFORMANCE OF THE CORE BUSINESS LINES

Development of the customer base

Major positions in Investment Solutions and Asset Management

Revenue synergies between Natixis and the retail banking networks

EFFICIENT

ABILITY TO ADAPT, TRANSFORM AND SIMPLIFY ITS STRUCTURES

Development of a multichannel business model

Merger of regional banks Cost synergies (pooling of IT

resources, procurement, business premises, etc.)

DIVERSIFIED

NEW GEOGRAPHICAL PRESENCE AND NEW BUSINESS LINES

International development of the Corporate & Investment Banking and Asset Management activities

Fully-fledged bancassureur Creation of the Payments

business line

ROBUST

CONSOLIDATION OF THE GROUPS FINANCIAL STRENGTH

Solvency and Liquidity targets achieved ahead of schedule

Future regulatory requirements already met (TLAC)

Natixis Asset Light model Disposal of non-strategic

assets


IN WHAT REMAINS A CHALLENGING ENVIRONMENT

Stabilization in prudential regulations

New data and consumer protection measures: RGPD, MIFID 2,

dissociation of residential mortgages and payment protection

insurance

New competitive conditions: banking mobility, DSP 2

NEW REGULATORY CHALLENGES

Probably set to continue throughout the life of the strategic plan

Uncertainty regarding the timetable and pace of the return to normal

monetary policies

Negative impact on the net interest income of the retail banking division

LOW INTEREST RATES

THE MAJOR CHALLENGE BEING THE TECHNOLOGICAL & DIGITAL REVOLUTION An industrial revolution impacting all our businesses

Simplicity

Immediacy

Customization

NEW CUSTOMER BEHAVIORS AND EXPECTATIONS

Fragmentation of the producer/distributor model

Wide availability of the most common financial services

NEW BUSINESS MODELS & COMPETITION

Automation

Digitization

NEW OPERATIONAL MODELS

TECHNO- LOGIES

Robotics

Mobility

Cloud computing Big data

Artificial intelligence

Connected devices

Blockchain


OUR CONVICTIONS


A COOPERATIVE and DECENTRALIZED business model: local presence, trust, customer insight, advisory services with powerful brands

UNIVERSAL BANKING business model: retail banking and insurance, corporate & investment banking, asset management

FINANCIAL STRENGTH

TRACK RECORD of successfully delivering on commitments made

SUPPORT of our employees

PROVIDING GREATER VALUE TO OUR CUSTOMERS

SIMPLIFYING OUR RANGE OF PRODUCTS & SERVICES AND OUR ORGANIZATIONAL STRUCTURES

WORKING DIFFERENTLY

By making COMMITMENTS to our customers, employees, and cooperative shareholders

By stepping up investment in the DIGITAL TRANSFORMATION of the Group

By pursuing GROWTH targets in each of our business lines

WE POSSESS MAJOR STRENGTHS

TO ADDRESS THE DIGITAL REVOLUTION

AND MAKE IT AN OPPORTUNITY TO SPEED UP THE PACE OF OUR DEVELOPMENT

OUR NEW STRATEGIC PLAN

ROWTH G OMMITMENT C CUSTOMER SATISFACTION: usability,

simplicity of interfaces, customization

REVENUES: digital distribution and marketing, including via third parties

PRODUCTIVITY and reduction in COSTS: customer autonomy, optimization and simplification of processes

RETAIL BANKING: innovative banks winning positions in their domestic market

PAYMENTS: a European pure-player strategy

FIDOR: the new-generation European banking community

INSURANCE: front-ranking insurance company in France

ASSET MANAGEMENT: world leader in active asset management

CORPORATE & INVESTMENT BANKING: making a difference with key sector expertise

To our CUSTOMERS: greater expertise, more solutions, higher satisfaction

To our EMPLOYEES: train our people and provide them with the tools they need, attract new talent

To our COOPERATIVE SHAREHOLDERS: become even more deeply committed in society


IGITAL TRANSFORMATION D


STRATEGIC GUIDELINES 2018-2020


DIGITAL TRANSFORMATION


DIGITAL ACTION PLAN LAUNCHED IN 2017 Speeding up the transformation

FOR OUR CUSTOMERS

New digital services Customization Self-care

FOR OUR EMPLOYEES

FOR OUR PARTNERS

MANAGEMENT, COORDINATION, EXPERTISE CENTER (DATA, UX, etc.)

FACTORY

PLATFORMS AND MULTIBRAND DIGITAL MIDDLEWARE

PARTNER

START-UPS

40 DIGITAL CHAMPIONS

KEEP IT SIMPLE WITH A UNIFIED DIGITAL ORGANIZATION

CO-CONSTRUCTION with the Groups companies

Only large-scale INDUSTRIAL PROJECTS

AGILE development during 6-month seasons

Equipment & mobility

Training Digital tools tailored

to their activities

Open APIs & open data Open innovation

& partner venture capital funds

DIGITAL TASKFORCE


https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi31dnZwo7WAhWGVxoKHcGICqQQjRwIBw&url=https://www.fidor.de/&psig=AFQjCNELWSHgLufSB_2BmKKCJ2Nf5lEjyg&ust=1504717245147404https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwik5a2rxI7WAhUItRoKHSlQDaIQjRwIBw&url=https://www.fidorbank.uk/about-fidor/group&psig=AFQjCNEIS6__hVQ4yKu63t00F16o-CMIDA&ust=1504717682292255


OUR AMBITIONS AND PERFORMANCE INDICATORS FOR 2020


90% of active customers are regular users of digital spaces

DIGITIZATION of customer behaviors

costs response times administrative tasks

OPERATIONAL EFFICIENCY + quality simplicity

10% of our sales generated through digital channels

New revenues via 3rd-party integration or distribution of our products

REVENUES direct, indirect, digital marketing

Digital NPS(*) at the pure-player level SATISFACTION Self care, UX, customization

4 TRANSFORMATION PROJECTS

OPTIMIZED OPERATING MODEL

INDUSTRIAL, AGILE & SECURE IT SYSTEMS

BENCHMARK DIGITAL SERVICES

DATA CENTRIC ENTERPRISES

1 3 2 4

(*) NPS: net promoter score

BENCHMARK DIGITAL SERVICES For our individual, professional and corporate customers

SELF CARE

CUSTOMER EXPERIENCE

ADDITIONAL REVENUES

DEVELOPMENTS

OBJECTIVE General introduction of 100% digital customer pathways: loans, savings, account opening

Pooling of apps and websites between the BP, CE and Natixis

Autonomy of customers for all everyday banking transactions

Initial building blocks for digital subscription

Further improvement of customer spaces with the adoption of predictive tools

Store of APIs enabling our corporate customers to directly integrate our financial solutions into their management systems


Customer experience of the highest standards and industrialization To optimize

our customer interfaces for account management

Speed up the acquisition of new customers and providing them with services on digital channels


EXAMPLES Appointments with advisors through the app

Management of bank cards and credit transfers

Mortgage loans: digitized simulation engine with a binding proposal, online creation of files and subscriptions

Analysis of customer spending on a comparative basis

Predictive tools to anticipate cash shortages

DATA CENTRIC ENTERPRISES Toward artificial intelligence


FOUNDATIONS

DATA MODELS

ARTIFICIAL INTELLIGENCE

4 FAMILIES OF USAGE SITUATIONS

Customization of offerings, customer satisfaction

Risks, security Artificial intelligence initial building blocks (chatbots)

Enhancement of CRM Example - appetite and attrition scorings

AI AT THE SALES AND OPERATIONAL MODELS

Systematic rollout of the 4 families of usage in the applications and processes to all of the Groups companies

Rollout of machine learning in the customer spaces and back-office tools

Example - predictive analysis of the needs of general public and corporate customers

TOOLS, TEAMS, TECHNOLOGIES

Groupe Data Lake, sharing of all retail data

Harmonization of standards and data

Example - reconciliation BP, CE and Natixis data for the same customer, pooling of external data



INDUSTRIAL, AGILE AND SECURE IT SYSTEMS At the service of transformation, time-to-market and customer satisfaction

5 SHARED DIGITAL PLATFORMS

Partners Customers Employees Data Digital marketing & contacts management

Digital platforms in the cloud

Migration of non-banking applications

Hybrid cloud solutions for business line applications

UNIFIED DIGITAL ARCHITECTURE

INDUSTRIAL APIs

DIGITAL MIDDLEWARE

INDUSTRIAL APIs

CORE BANKING IT SYSTEMS

CLOUD FIRST

SECURITY



OPTIMIZED OPERATING MODEL Pooled platforms and integrated processes

EXTENSION OF THE BUSINESS LINE PLATFORMS

Management of MORTGAGES

Assistance and customer relations in NON-LIFE INSURANCE

SECURITIES middle office

DIGITALIZATION, electronic signature, digital archiving

AUTOMATION of processes with virtual assistants, with a Group program

TRANSFORMATION of processes (chat bot, AI, blockchain, etc.)

INDUSTRIALIZING

TRANSFORMING

GLOBAL APPROACH

Front Middle Back

HR

Processes

IT

MANAGING PER SECTOR

Mortgages

Fiduciary activities

Inheritance management

Recovery of receivables

Desktop publishing and archiving

Real estate & Logistics

EXTENSION OF THE POOLED FUNCTIONS

Procurement

Training

Administrative functions



THE MEANS FOR OUR SUCCESS Redeployment of our resources, new skills

2020 TARGET

Breakdown of the IT budget: investments operations

DIGITAL

DIGITAL PLATFORMS

2.4bn for the annual

IT budget

~9% of the Groups net

banking income

5,800 IT specialists on

permanent contracts

50%-50% (40%-60% in 2016)

50% of investments

600 employees involved

DIGITAL SKILLS IT RESOURCES

1,000 employees involved

~150-200 product owners

~40-70 UX designers & digital marketing experts

~200-250 data scientists & data engineers

40 digital champions in the Groups companies



COMMITMENT Our commitments to our CUSTOMERS, EMPLOYEES, and COOPERATIVE SHAREHOLDERS


OUR COMMITMENTS TO OUR CUSTOMERS

EXPERTISE Distinguishing ourselves through the scope of our technical expertise and the quality of our customer relations

SOLUTIONS Supporting our customers in all their projects by developing with them the solution best suited to their needs

The skills of our EMPLOYEES

Our technological, digital, and operational TRANSFORMATION

TWO MARKERS IN ALL OUR BUSINESS LINES

TWO LEVERS

RETAIL BANKING


CORPORATE & INVESTMENT BANKING

1 2 3

CUSTOMERS COMMITMENT


NEW SOLUTIONS In response to customers new expectations

EXAMPLES EXAMPLES

INDIVIDUAL CUSTOMERS

Mobile banking, remote signatures, mobile payments

Leasing solutions with purchase options as an alternative to a car loan

PROFESSIONAL CUSTOMERS

Long-term vehicle leasing (MyCarLease solution )

CORPORATE CUSTOMERS

Innovative acceptance of payments solutions

INDIVIDUAL CUSTOMERS

Real-estate acquisition: support in preparing the real-estate acquisition project up until the signature of the final legal documents, and home protection solutions (comprehensive home insurance, remote surveillance, connected housing)

Inheritance management: dedicated service tailored to the beneficiaries, link with the banks involved, tax advisory services, investment solutions

Separation: financial, legal and tax advisory services

CORPORATE CUSTOMERS

Growth: arrangement, syndication, financial solutions Disposal and transmission: M&A solutions with the support of Natixis

Partners, legal, tax and wealth management advisory services, private banking services for the senior manager

RESPONDING TO NEW BEHAVIORS SUPPORTING OUR CUSTOMERS AT KEY MOMENTS IN THEIR LIVES WITH MORE SERVICES

RETAIL BANKING CUSTOMERS COMMITMENT


A PROMISE OF ACCESSIBILITY, ADVISORY SERVICES AND EXCELLENCE

CUSTOMER RELATIONS CENTERS

Up to 10:00pm, 6 days a week for certain services

Transformation

of back offices into middle offices

ADVISORS & ACCOUNT MANAGERS

Priority given to expertise

Specialized advisors by 2020

Digital tools: enhanced advisory services, customer insight, customization

+ 50%

DIGITAL CHANNELS

Autonomy for everyday transactions

Subscription for plain vanilla products

Aftersales service for simple requests

Dedicated solutions for corporate customers

SALES OUTLETS & BUSINESS CENTERS

Local presence

A SINGLE OBJECTIVE: CUSTOMER SATISFACTION


MODLE DE RELATION OMNICANAL RENOCE>

PROPOSAL OF DIFFERENT LEVELS OF SERVICE

MOBILIZATION AROUND CUSTOMER SATISFACTION

DIGITAL PLATFORM for excellence

FREEING UP TIME FOR THE SALES FORCES for greater proactivity

MORE HIGHLY QUALIFIED ADVISORY SERVICES thanks to the contribution made by data and the presence of experts throughout France

Respond to DIFFERENT WAYS OF CONSUMING BANKING SERVICES

ADAPT THE PRICING MODEL

Favor SIMPLICITY, OPENNESS and CUSTOMER RECOGNITION

NEW SOLUTIONS offered to our customers

Increased SPECIALIZATION of our advisors

Priority given to SERVICE-MINDEDNESS

2020 TARGET

LEADER IN NPS(1) IN 2 OUT OF 3 FRENCH REGIONS

(1): Net Promoter Score

RENOVATED MULTICHANNEL RELATIONSHIP MODEL

RETAIL BANKING CUSTOMERS COMMITMENT

14

941

1 505

Dec. 2016 June 2017 Sept. 2017

ASSET & WEALTH MANAGEMENT Provide our customers with innovative, tailor-made active investment solutions and strategies


> Distribution of our expertise to

regional clientele, based on

the hub in Hong Kong and the

development of partnerships

> Building on the recent

acquisition of IML in Australia

to provide products developed

by Natixis other affiliates in this

area

Alternative management:

> Draw on the wide diversity in our affiliates expertise

to design innovative and competitive products

> Improve the centralized distribution platform to

promote alternative solutions

Solutions:

> Setting up of a solutions platform, neutral in its

choice of products, combining the different

expertise of our affiliates and third-party building

blocks if necessary

> Strengthening of the Hub Portfolio Research &

Consulting Group providing tailor-made solutions

to our customers

DNCA

Seeyond

H2O

Vega

Dorval

Other

AuM, m

BETTER SERVING THE CUSTOMERS OF GROUPE BPCE

A RANGE OF EXPERTISE EXPANDED TO INCLUDE

ALTERNATIVE MANAGEMENT AND SOLUTIONS

A HEIGHTENED PRESENCE IN THE

ASIA-PACIFIC REGION

> Dedicated sales force

> Development of digital robo-advisor

tools (La program)

> Expansion of the Slectiz range of

funds

AWM CUSTOMERS COMMITMENT

CORPORATE & INVESTMENT BANKING A continuum of high-caliber expertise to differentiate ourselves and create value for our customers


INTERDISCIPLINARY EXPERTISE:

BECOMING A GO-TO-BANK

IN 4 DIFFERENT SECTORS

ENERGY AND NATURAL RESOURCES

INFRASTRUCTURE

AVIATION

REAL ESTATE AND HOSPITALITY

CORPORATES INVESTORS

INSURERS FINANCIAL SPONSORS

DEVELOP TWO CUSTOMER SEGMENTS

Enhanced proximity to our customers,

by building on our strengths:

Regional and international coverage Expertise in investment banking Multi-boutique model in M&A

HIGHLIGHTING OUR CUSTOMER PROXIMITY

Innovative solutions to meet our

customers specific needs and to

satisfy their search for returns, in all

regions worldwide

A range of expertise to meet the

specific needs of insurance

companies

An Investment banking offering

making it possible to strengthen our

relationship with Private Equity funds

and infrastructure funds

More than 20 years of expertise in structured financing

Franchises recognized worldwide and an extensive customer base

Sectors offering strong potential for additional revenues

A comprehensive offering for our customers including IB and M&A products

CIB CUSTOMERS COMMITMENT


OUR COMMITMENTS TO OUR EMPLOYEES A strong employer promise

TRAINING

our employees ROLLING OUT digital tools to support the work of our teams

MEASURING satisfaction at key moments in our employees lives

ENHANCING

career paths with professional mobility (Mobiliway)

IMPLEMENTING collaborative tools

MAKING AVAILABLE digitized HR services

DEVELOPING EMPLOYABILITY

MAKING OUR EMPLOYEES AGENTS OF CHANGE

ENRICHING AND SIMPLIFYING THE EMPLOYEE EXPERIENCE

10m hours of training for the Groups employees

+ 25% vs. 2016

50% of our employees see themselves as agents of change (40% in 2016)

100% of the Groups employees are equipped with digital tools

Co-construction Corporate HR programs Setting up of an HR LAB

>50% of our employees are active on the corporate social network

Employees NPS

PROMOTING GENDER EQUALITY

45% of managers are women

30% of senior managers are women

specialized advisors by the year 2020

+4,600

EMPLOYEES COMMITMENT


OUR COMMITMENTS TO OUR EMPLOYEES Attracting and winning the loyalty of the best talent

DEVELOPING THE GROUPS IMAGE AS AN EMPLOYER

REVISED RECRUITMENT PROCESSES

ENHANCEMENT OF PROFESSIONAL MOBILITY

Creation of a Group Employer Signature

New Group careers site

Ambassadors 2.0 program

Deployment of cooptation

Digitalisation of hiring processes

Wider introduction of a dedicated portal for all the Groups employees

Wish list system to gather employees career development preferences within the Group

70%

2020 TARGET

of our employees recommend the Group as an employer

EMPLOYEES COMMITMENT


OUR COMMITMENTS TO OUR COOPERATIVE SHAREHOLDERS A socially responsible Group, committed to society at large

REGIONAL ROOTS LOCAL PRESENCE SOCIAL SOLIDARITY

COOPERATIVE AND CSR COMMITMENTS

Strengthening of relationships with our cooperative shareholders and stakeholders Drawing up of transparent sector-specific policies and inclusion of ESG1 criteria

Professional deontology: code of ethics/code of behavior Societal responsibility of banks via the ISO 26 000 approach

COMMITMENTS TO OUR CUSTOMERS AND LOCAL COMMUNITIES

Contributions to regional ecosystems: local general interest initiatives, innovation, active sponsorship, socially responsible purchasing

Access to our services: vulnerable customers, individuals suffering from disabilities, protected persons Prevention of over-indebtedness Inclusive finance: remain a leader in microcredit solutions with support measures

(1) Environmental, Social and Corporate Governance

COOPERATIVE SHAREHOLDERS COMMITMENT


OUR COMMITMENTS TO OUR COOPERATIVE SHAREHOLDERS A socially responsible Group, committed to green growth

A BENCHMARK BANK FOR GREEN AND SOCIALLY RESPONSIBLE GROWTH

Increased financing of the energy transition

>10bn Outstandings and loan

commitments in favor of the

energy transition (+1.6bn vs. end-2016)

>35bn

Development of responsible savings with, in particular, SRI

Carbon reduction plan

Total responsible savings

deposits (+10bn vs. end-2016)

-10% Carbon audit (-3.5% per FTE

and per year over the period)

Intermediation of Green or Social financing

2 bond issues/year over the next 3 years

(3 bond issues between 2015 and 2017)

COOPERATIVE SHAREHOLDERS COMMITMENT


GROWTH Our AMBITIONS for each of our business lines

42

Serving the French civil service market

Consolidating our position as the leading bank for SMEs

Bank dedicated to entrepreneurs, companies and their senior managers

Develop the affinity-based business model

+ 200,000 PRINCIPAL CUSTOMERS USING BANKING SERVICES

INCLUDING

+ 30,000 HIGH NET-WORTH AND WEALTHY CUSTOMERS

+ 40,000 ACTIVE PROFESSIONAL CUSTOMERS

2020 TARGETS AMBITION

BANQUE POPULAIRE BANKS

GROWTH


+ 5,500 ACTIVE CORPORATE AND INSTITUTIONAL CUSTOMERS

NOVEMBER 29, 2017

RETAIL BANKING

+ 5% vs 2017

+ 15% vs 2017

+ 9% vs 2017

+ 5% vs 2017

http://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGjc_y-OrWAhUHQBoKHdE2BF8QjRwIBw&url=http://www.rivesparis-banquepopulaire.fr/formulaires/fonction-publique/&psig=AOvVaw1yw7oNOa1EclvHvunY6SDR&ust=1507892884360566

43

Remain the benchmark banking institution for our individual customers, with a particular focus on customers with high net-worth potential

Continue attracting new professional and corporate customers

Become the preferred bank for senior managers in the regions

Remain the front-ranking player in the institutional market

To serve all our customers by tailoring our sales organization to their different profiles

+ 430,000 PRINCIPAL CUSTOMERS USING BANKING SERVICES

INCLUDING

+ 120,000 HIGH NET-WORTH CUSTOMERS

+ 30,000 ACTIVE PROFESSIONAL CUSTOMERS

AMBITION

CAISSES D'EPARGNE

GROWTH


+ 4,000 ACTIVE CORPORATE AND INSTITUTIONAL CUSTOMERS

2020 TARGETS

NOVEMBER 29, 2017

RETAIL BANKING

+7% vs 2017

+13% vs 2017

+15% vs 2017

+30% vs 2017

https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi_-PuJ-erWAhXE7hoKHedSBBEQjRwIBw&url=https://www.youtube.com/watch?v=72JSwWcOk_Y&psig=AOvVaw1mPizFfsDI0a0X2Z_34mYf&ust=1507892938931184

44

CREDIT FONCIER AND BANQUE PALATINE

RETAIL BANKING

Up-market services

Dual banking relationship

Development of private banking

Forthcoming IT migration on the Banque Populaire banks platform

Bank specializing in intermediate-sized enterprises and their senior managers

Real-estate banking institution Mortgage loans, home ownership for low-income families, reverse mortgages, B2B model

Continued integration of its activities in the Group

Continued reduction in expenses

GROWTH

INVESTOR DAY: 2018-2020 STRATEGIC PLAN NOVEMBER 29, 2017

INVESTOR DAY: 2018-2020 STRATEGIC PLAN 45

FIDOR The new generation European banking community

A MODEL BASED ON THREE COMPONENTS

Social network Marketplace for financial services Aggregation, finance management AUDIENCE-BASED BUSINESS

MODEL

COMMUNITY Services aggregator

Simple, 100% digital banking offering 100% digital operational mode Marketing jointly developed with

customers

BANKING BUSINESS MODEL

BANK Neobank based on the community

PAN-EUROPEAN ROLLOUT

Ambition: a European community

> 500,000 users in 2017

Launch in 2018

Already up and running

ROLLOUT DEPENDING ON THE NATIONAL CONTEXT

Priority countries

Banking as a service solutions for European banks and brands

Emerging markets (digital solutions for inclusive finance)

CREATOR OF SOLUTIONS White label banking technologies

INTERNATIONAL ROLLOUT

GROWTH

The entire digital bank in b2b (technologies, services, offerings)

LICENSE-BASED BUSINESS MODEL

NOVEMBER 29, 2017

RETAIL BANKING

https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi31dnZwo7WAhWGVxoKHcGICqQQjRwIBw&url=https://www.fidor.de/&psig=AFQjCNELWSHgLufSB_2BmKKCJ2Nf5lEjyg&ust=1504717245147404https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=&url=https://fr.wikipedia.org/wiki/Drapeau_du_Royaume-Uni&psig=AFQjCNE25U0e6HsGJn57Z_bHe0B3haEhsA&ust=1506706191635953http://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwixw_rjtaTWAhWEPhQKHYrMBb8QjRwIBw&url=http://www.easyvoyage.com/actualite/voyage-en-europe-l-explication-des-drapeaux-europeens-69968&psig=AFQjCNFdMyLYASjZ0a3fPIOST0Ck7_dDXw&ust=1505469691815061http://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwixw_rjtaTWAhWEPhQKHYrMBb8QjRwIBw&url=http://www.easyvoyage.com/actualite/voyage-en-europe-l-explication-des-drapeaux-europeens-69968&psig=AFQjCNFdMyLYASjZ0a3fPIOST0Ck7_dDXw&ust=1505469691815061http://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwixw_rjtaTWAhWEPhQKHYrMBb8QjRwIBw&url=http://www.easyvoyage.com/actualite/voyage-en-europe-l-explication-des-drapeaux-europeens-69968&psig=AFQjCNFdMyLYASjZ0a3fPIOST0Ck7_dDXw&ust=1505469691815061http://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwixw_rjtaTWAhWEPhQKHYrMBb8QjRwIBw&url=http://www.easyvoyage.com/actualite/voyage-en-europe-l-explication-des-drapeaux-europeens-69968&psig=AFQjCNFdMyLYASjZ0a3fPIOST0Ck7_dDXw&ust=1505469691815061https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=&url=https://fr.wikipedia.org/wiki/Drapeau_du_Royaume-Uni&psig=AFQjCNE25U0e6HsGJn57Z_bHe0B3haEhsA&ust=1506706191635953https://www.google.fr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwik5a2rxI7WAhUItRoKHSlQDaIQjRwIBw&url=https://www.fidorbank.uk/about-fidor/group&psig=AFQjCNEIS6__hVQ4yKu63t00F16o-CMIDA&ust=1504717682292255

46

Adopt a pure-player strategy in Payments

Accelerate our industrial transformation to become full digital

Generate additional revenue synergies with Groupe BPCE networks and explore new growth drivers

Seize opportunities to grow market shares in all SFS businesses

~ 6% NET REVENUES CAGR

~ 67% COST/INCOME RATIO

AMBITION


GROWTH


X 1.5 PAYMENTS REVENUES

2020 TARGETS

NOVEMBER 29, 2017

RETAIL BANKING

47

Consolidate our position as a major French insurer at the forefront of operational performance, and offering best-in-class customer experience

~ 7% NET REVENUE CAGR

~ 90bn LIFE INSURANCE AUM1

AMBITION

INSURANCE

GROWTH

+1 million NON-LIFE CONTRACTS HELD IN PORTFOLIO

48

Extend our global Distribution reach notably in European countries outside of France

Leverage revenue synergies with the Groupe BPCE networks

Expand in Alternatives and Solutions

Increase our Pan-Asian footprint

Pursue an active M&A strategy

Roll out our new brand architecture

Natixis Wealth Management: new brand to reflect a refocus on HNWI, UHNWI, Family Offices and Foundations and better leverage the Asset Management product offering

~6% NET REVENUES CAGR

>15bn NET INFLOWS GENERATED WITH THE RETAIL BANKING NETWORKS OF GROUPE BPCE

>100bn AGGREGATE NET INFLOWS

Reassert our position as the worlds premier active asset manager by our size, profitability and innovative ability

1tn AuM

AMBITION



GROWTH

NOVEMBER 29, 2017

AWM

2020 TARGETS

49

Strengthen the O2D-model

Push further the Solutions business

Increase our footprint in the insurers and financial sponsors segments

Become a reference player in the green business

Foster international growth

Be recognized as a solution-oriented innovative house and become the go-to bank in 4 key sectors

~ 3% NET REVENUES CAGR

AMBITION


CORPORATE & INVESTMENT BANKING

GROWTH

> 40% OF TOTAL REVENUES COMING

FROM THE AMERICAS AND APAC

NOVEMBER 29, 2017

4 KEY SECTORS, INSURANCE

COMPANIES AND INVESTMENT FUNDS

> 70% IB & M&A ADDITIONAL REVENUES

CIB

2020 TARGETS

INVESTOR DAY: 2018-2020 STRATEGIC PLAN 50

REVENUE SYNERGIES Increase the pace by capitalizing on the successes of the previous plans

NASCR III program (NATIXIS AT THE SERVICE OF THE NETWORK CUSTOMERS)

~800m1 750m of synergies generated in the space of 4 years

of new synergies in 3 years

(1) Estimated in June 2017 at a total of 803m at December 31, 2017. Final figure available in early 2018.

ASSET MANAGEMENT AND INSURANCE

Priority given to financial savings Development of the

bancassurance business model


Broaden the scope of the Group entities using SFS

New offerings (restructuring of loans, revolving credit facilities for

professionals, LLD and LOA for

individual customers)

End 2013

End 2017

End 2020

GROWTH

NOVEMBER 29, 2017


FINANCIAL TRAJECTORY

2020 FINANCIAL TARGETS

(1) Excluding senior preferred debt


Low interest-rate environment during the life of the plan

Regulatory pressure on commissions

Sustained investments in digital solutions 2018-2020

ASSUMPTIONS & STRATEGIES

2020 FINANCIAL TARGETS

NET BANKING INCOME

>25bn

COST TO INCOME RATIO

Retail Banking 64% Asset & Wealth Manag. 68% Corp. & Invest. Banking 60%

COST OF RISK

20 to 30bps

CET 1 RATIO

15.5% TLAC

>21.5%1 As of January 1, 2019 (regulatory target: 2022)

Risk appetite remaining moderate

COST SYNERGIES:

1bn on a full year basis in 2020 (disclosed in February 2017)

ECONOMIC ENVIRONMENT Prudent assumptions


Assumptions substantially below the IMF forecasts published in October 2017

World economic growth continues to grow at different speeds depending on the geographical region

Monetary policy of the FED returns to normal and initial steps towards a reduction in the ECBs QE

Rise in the level of inflation following the rise in commodity prices

GROWTH IN GDP (AS A %)

INTEREST RATES

A scenario with levels close to current market forecasts

A euro/dollar exchange rate of 1.20 over the life of the plan

UNDERLYING ASSUMPTIONS

3-month Euribor

Livret A rate

10-year OAT

1.3 1.4

1.5 1.5 1.7

1.5

1.4 1.4

2.1

2.4

2.2

2

2017 (p) 2018 (p) 2019 (p) 2020 (p)

USA

Euro zone France

-0.30% -0.11%

0.12%

0.39%

1.02% 1.26%

1.53%

1.78%

0.75%

1.00%

Dec.-17 Dec.-18 Dec.-19 Dec.-20

CHANGE IN RWAs

(1) Estimated RWAs under Basel III, end of period. (2) Excluding Natixis business divisions, including Coface, Corporate Center BPCE SA, consolidation effects


RWAs PER

BUSINESS LINE

IN 20201

79%

16%

3% 2%

No change in the allocation of risk-weighted assets during the life of the plan

Support given to business growth in a low interest-rate environment

RWAs PER

BUSINESS LINE IN

20171

78%

16%

3% 3%

Annual growth in RWAs during 2017-20 3%

Retail Banking CIB Asset & W. man. Other2

BREAKDOWN OF 2020 REVENUES

REVENUE TRAJECTORY A low interest-rate environment having a negative impact on Retail Banking


2017-2020 GROWTH TARGETS SET FOR THE BUSINESS LINES

Impact of low interest rates

Stability in net interest income in 2018 Growth as of mid-2019

CAGR 2017-2020

CIB

3%

Retail Banking

2%

Asset & Wealth Man.

6%

An environment remaining unfavorable to the revenues of the retail banking networks

Annual growth in commissions of 3% (excluding early redemption fees)

Increase in commissions generated on insurance despite the dissociation of residential mortgages from payment protection insurance

Increase in commissions generated on account management services in pace with the rise in the number of customers using banking products

Increase in the number of payments transactions

70% Retail Banking

16% CIB

14% Asset & Wealth Man.

GOOD EXECUTION OF THE TOE PLAN 330m in cost synergies generated by end-September 2017

(1) Excluding automation program (except within the Natixis TOE plan), excluding international retail banking, excluding Fidor. Including transformation costs prior to 2017 generating cost savings as of 2017

(2) Disclosed on November 9, 2016


GROUP PLAN1

Excluding Natixis

750m

~36% RATIONALIZATION OF STRUCTURES and IT mergers, IT, other

~32%

250m

NATIXIS TRANSFORMATION AND OPERATIONAL EXCELLENCE PLAN2

790m

NON-RECURRING TRANSFORMATION COSTS

Of which Natixis (220m)

IT migrations,

modernization of IS

% ACHIEVED AT YEAR END (1bn) Followed per program and per entity

REAL ESTATE and PROCUREMENT

TRANSFORMATION OF THE RELATIONSHIP MODEL in the Retail Banking division

~32% 2017-2020 aggregate

40%

70%

100%

END-2017

END-2018

END-2019

SOLVENCY TRAJECTORY Solvency maintained at a high level

(1) Full CRR/CRD IV CET1 ratio; trajectory takes account of the impact of IFRS 9

57

TLAC

>21.5%

Regulatory target fixed for 2022 achieved as of 2019

Plans to issue 4 to 5bn/year of senior non-preferred debt

COMMON EQUITY TIER 1 RATIO1

2018-2020 target

15.5%

Sept. 30, 2017 Retained earnings

Issue of cooperative shares (net)

Business development

230 bps > 40 bps

15%

2020 target

15.5%

- 180 bps

Target for the ORGANIC INCREASE IN THE CET1 RATIO (excluding cooperative shares issues)

50bps with conservative assumptions regarding increase in RWAs

NOVEMBER 29, 2017 INVESTOR DAY: 2018-2020 STRATEGIC PLAN


QUESTIONS & ANSWERS

investor day - accueil - groupe bpce · investor day: 2018-2020 strategic plan november 29, 2017 18...

Documents