Presentation of the Development Plan. 5 October 2007

Transcription

1 Presentation of the Development Plan 5 October 27

2 Avertissement 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 89/24 from 29 April 24 (chapter 1, article 2, 1). This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, they are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset depreciation. Information related to third parties or extracted from external sources have not been independently revued and their exactitude or exhaustivity cannot be guaranteed. The readers must take all these risk factors and uncertainties into consideration before making their own judgement. In case of dispute, the French version of this document is the reference. 2

3 Agenda: 27/21 development plan for the Cariparma Friuladria Group Build a competitive banking platform Italy: an attractive market The Cariparma Friuladria Group: one of the best banks in Italy A unique value creating integration process Implement our development plan and realize synergies An ambitious development plan The 27/21 Business Plan 3

4 Italy, an attractive market A market with significant growth potential A market still under-penetrated Attractive growth outlook Penetration Pénétration of banking des produits products bancaires (outstandings (encours en %% of du GDP, PIB, 26) 26) 6% 58% Consensus for marché the Italian italien market TCAM CAGR 8% 4 38% 32% 43% 6 6,9% 5,% 6,9% 6,4% 25% % 16% 2 6% 7% Real Crédit Estate Immobilier Credit Consumer Crédit à la consommation Credit Assurance Life Insurance Vie Crédits Credit Dépôts Direct Deposits directs Dépôts Indirect indirects* Deposits* Revenus Income Italy Italie Europe France (*) off-balance sheet, excl. life insurance Sources: Bank of Italy, Prometeia, Assofin, ASF, FFSA and Bank of France 4

5 Italy, an attractive market A rapidly changing competitive landscape Size and profitability of the main players in 22 and their forecasts for 28 Credit+Deposit* Volumes Crédits+Dépôts Volumes * ROE (%) Credit+Deposit* Volumes Crédits+Dépôts Volumes * ( bn) (Mrd ) ( bn) (Mrd ) * * 11Mrd bn * 14,9% ROE (%) (%) * 75 78Mrd bn % x2,9 1 5 * 6,2% Average Moyenne Volumes Average Moyenne ROE Moyenne Average Volumes Moyenne Average ROE (*) excl. indirect deposits (off-balance sheet) Sources: Official consolidated data for the main Italian banks, Bain analyses 5

6 Agenda: 27/21 development plan for the Cariparma Friuladria Group Build a competitive banking platform Italy: an attractive market The Cariparma Friuladria Group: one of the best banks in Italy A unique value creating integration process Implement our development plan and realize synergies An ambitious development plan The 27/21 Business Plan 6

7 Cariparma Friuladria Group: one of the best banks in Italy No. 1 in terms of profitability 1th in number of branches 1st in profitability Cost Coefficient / Income d'exploitation ratio (% 26) (%, 26) 8. 1% ,6% % 63% 63% 64% 61% 61% 58% 53% 55% 55% 55% 56% 5% 2. ISP UCI - CAP GBP* UBI MPS BPER BAV (ABN) 743 BPM 736 BNL (BNP) GCRP 565 CR Firenze 528 Pop Vic 481 Credem 477 Carige 2 GCRP ISP UCI-CAP Pop Vic BAV (ABN) BPER GBP* Credem MPS BPM CR Firenze Carige UBI BNL (BNP) N.B. Unless otherwise stated, GCRP always includes Cariparma, Friuladria and the 22 ex-intesa branches 7 (*) GBP = Banca Popolare Italiana (BPI) + Banca Popolare di Verona e Novara (BPVN) Note: BIVERBANCA included in ISP Sources: Banks, Bank of Italy, Dec. 26

8 Cariparma Friuladria Group: one of the best banks in Italy Leader in terms of productivity and asset quality 1 st in productivity 2 nd in asset quality NBI per employee ( ) Non Performing Loans in proportion to Total Loans (in basis points) GCRP 21 BAV (ABN) BPM Credem 21 GBP* Pop Vic MPS BNL (BNP) Carige UCI-CAP UBI BPER 163 CR Firenze ISP n.d. Credem BPM UBI ISP GBP BPER BNL Carige MPS GCRP CR Firenze (BNP) UCI-CAP 8 (*) GBP = Banca Popolare Italiana (BPI) + Banca Popolare di Verona e Novara (BPVN) Note: BIVERBANCA included in ISP Sources: Banks, Bank of Italy, Dec. 26

9 Cariparma Friuladria Group: one of the best banks in Italy High market share in attractive regions Retail branches per region Comments LOMBARDIA TRENTINO-ALTO ADIGE VALLE D'AOSTA 39 PIEMONTE LIGURIA 1 TOSCANA Sardegna FRIULI-VENEZIA GIULIA VENETO 1 EMILIA-ROMAGNA MARCHE 1 UMBRIA ABRUZZO 1 MOLISE 7 Dense geographic coverage 665 retail branches About 2% of total bank branches About 3.4% market share in the 45 provinces covered Presence concentrated in the North 42% of branches concentrated in 5 provinces with market share in excess of 1% 8 other provinces with market share of between 5% and 1% LAZIO XX # branches/ province PUGLIA About 7% market share in Campania (Naples/Caserta) Market share CAMPANIA BASILICATA High deposit base makes for a balanced credit/deposit mix % % - 3% 3% - 5% 5% - 1% Sicilia > 1% 9 N.B. market share is calculated based on the number of branches Sources: Bank of Italy at , Bain analysis

10 Cariparma Friuladria Group: one of the best banks in Italy In many provinces, the density of the branch network has a leverage effect on volumes 5% 4 Piacenza Parma Market Share Volumes* 3 Pordenone 2 Pavia Cremonia Gorizia Lodi 1 Trieste Caserta Udine Mantova Alessandria Venezia Como Napoli % Part Market de marché Share -Number Nombreof d'agences Branches 1 N.B. * Volume = direct deposits + credits Source:s March 26 market data, Bain analysis

11 Cariparma Friuladria Group: one of the best banks in Italy Cariparma and Friuladria benefit from high satisfaction levels among their clients Are you happy with your bank? 18% 82% Italian Bank Average 14% 86% +4pts Friuladria Clients 13% 87% +5pts Cariparma Clients Pas Very du unhappy tout satisfait Peu Unhappy satisfait Happy Satisfait Très Very Happy satisfait Sources: TNS study July 27 (Basis: total n = 12 / clients n = 39 Cariparma, n = 39 Friuladria ) 11

12 Cariparma Friuladria Group: one of the best banks in Italy This solid presence in a growth market was a key factor in Crédit Agricole Group s decision to acquire the Cariparma Friuladria Group Regional Banks* 15% 75% 1% Acquisition value of the retail bank network bn, i.e. PER 26E of 16.6x and a 26E P/BV multiple of 3.x** 5.1bn invested by Crédit Agricole Group (of which 4.5bn by CA S.A.).9bn invested by the Cariparma Foundation 79% Financing of the operation - In part through a 4bn capital increase carried out at the beginning of 27 - Remainder financed from the Group s own resources CARIPARMA FRIULADRIA GROUP (*) Through SACAM International (**) Information communicated by Crédit Agricole S.A. in October 26 12

13 Agenda: 27/21 development plan for the Cariparma Friuladria Group Build a competitive banking platform Italy: an attractive market The Cariparma Friuladria Group: one of the best banks in Italy A unique value creating integration process Implement our development plan and realize synergies An ambitious development plan The 27/21 Business Plan 13

14 A unique value creating integration process Integration of the banks and the 22 branches is the keystone Integrate the banks and 22 branches 14

15 A unique value creating integration process A project involving over 2 people at all Group levels led by CA S.A. s Senior Management Management Committee Project Management Italian Management Committee Over 2 people involved within the Group: - Italian banks - Crédit Agricole S.A. - Business line subsidiaries in France and Italy Commercial Strategy Business Plan Interim Mgt ex-intesa Branches IT Migration Business Lines Roll- Out Closing High levels of involvement by the Senior Management of CA S.A., through weekly monitoring committees Management ISP interface Carve Out Communication Organisation Recruitment and Maintaining Teams Alignment of Group Standards Risks & Basel II 12 French-Italian projects, involving the bank s and Crédit Agricole s teams: - Development projects - Integration projects Completed Being finalised 9 of the 12 projects completed in a very short timeframe 15

16 A unique value creating integration process ensuring business continuity and ongoing performance CONTEXT 2 banking networks: Cariparma/Friuladria - Commercially autonomous - Partially equipped with central functions - In the case of Friuladria, highly dependent on Intesa in terms of IT 22 ex-intesa branches - 29 transferred to Friuladria transferred to Cariparma Cariparma Friuladria 173 ex-intesa Agences branches Intesa 29 ex-intesa branches Intesa San Paolo CHALLENGES Avoid losing clients and staff, particularly at ex-intesa branches Ensure the continuity of services during the sale of the two banks RESULTS Implement an Interim Management Programme to enable Cariparma to manage the 173 ex-intesa branches 4 months ahead of the effective sale Signing of the service level agreements: IT, back-office and support functions 16

17 A unique value creating integration process 4 months ahead of plan Management of branches 4 months in advance of their effective acquisition date: Interim Management Programme Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 12/1 1/3 1/4 1/7 Signing of the Crédit Agricole/ Intesa agreement Acquisition by Cariparma of 79% of Friuladria Transfer of 29 ex-intesa branches to Friuladria Transfer of 173 ex-intesa branches to Cariparma IT migration of 173 ex-intesa branches in a very short timeframe without any issues Acquisition by CA S.A., SACAM and the Cariparma Foundation of 1% of Cariparma 17

18 A unique value creating integration process The new visual identity rolled out across the entire network Pordenone Varese 18

19 A unique value creating integration process New governance based on a multi-regional model of autonomous banks and a shared platform of central functions Chairman Group Central Functions Managing Director Common holding company - Control and audit functions - Central and coordination functions - IT systems and back office Two Commercial Banks Cariparma Bank Friuladria Bank - Centre/South - North/East - North/West A multi-regional model that maintains the commercial autonomy of the banks in their regions Sharing of resources in a virtual holding company, within Cariparma to provide: - Operational platform - Support functions - Audit and risk functions incorporated within the business lines of Crédit Agricole Group A quick connection of the Cariparma Friuladria Group to factories of Crédit Agricole Group Factories 19

20 A unique value creating integration process Continuity of management key to successful integration Amministratore Delegato G.Corradi Leadership based on the historical Italian management team of the banks: - Recognising past performance of management team and all staff at Cariparma and Friuladria - Continuity of business relationships and strong regional presence Direttore Generale Cariparma G.Maioli Condirettore Generale Cariparma F.Canterini Direttore Generale Banca Popolare Friuladria V.Fenaroli - Leverage of functional teams at Cariparma, experienced in target IT systems and back-office platforms Willingness to create mixed teams: - Transfer of key resources between Cariparma and Friuladria to share know-how and create a Group culture Crédit Agricole resources primarily for financial and controlling functions 2

21 A unique value creating integration process Robust business momentum during integration works Cariparma Friuladria Average volumes ( m) Adjusted net profit 1 ( m) Average volumes ( m) Adjusted net profit 1 ( m) +8.% +7.3% +7.1% +4.3% H1 26 H1 27 H1 26 H1 27 H1 26 S1 27 H1 26 S1 27 Direct and indirect (off-balance sheet) deposits Loans Direct and indirect (off-balance sheet) deposits Loans 21 (1) Net profit adjusted of exceptional costs and provisions linked to the integration process N.B. average volumes Friuladria figures: include the 29 ex-intesa/friuladria branches migrated in April 27, H1 26 Proforma Cariparma figures: excludes the 173 ex-intesa branches

22 Agenda: 27/21 development plan for the Cariparma Friuladria Group Build a competitive banking platform Italy: an attractive market The Cariparma Friuladria Group: one of the best banks in Italy A unique value creating integration process Implement our development plan and realize synergies An ambitious development plan The 27/21 Business Plan 22

23 An ambitious development plan 1 Strengthen positions in high potential client segments Integrate the banks and 22 branches 23

24 An ambitious development plan Cariparma and Friuladria to strengthen an already solid position in premium clients and Private Banking Non-corporate clients Cariparma-Friuladria 26* Segmentation de la clientèle hors entreprise (26) Key elements in the Private Banking strategy 1% 17% 1% Open dedicated Private Banking centres in high potential regions % Private + Premium Develop synergies across private and premium clients assets 4 82% 36% 73% Broaden the product range (e.g. structured products drawn up in conjunction with Calyon) 2 28% Clients Volumes (prêts(loans + collecte + direct directe + indirect + collecte deposits indirecte - off-balance hors bilan) sheet) Family (< 1k) Premium (> 1k) Private (> 5k) NBI growth of 11% per year 24 (*) excludes ex-intesa branches Sources : Cariparma Friuladria Group - Planning and Control Department

25 An ambitious development plan and will also accelerate Corporate business Growth by segment Cariparma Friuladria Group Key elements of the strategy Annual growth forecast for NBI by segment (26/21) Prévision de croissance annuelle du PNB par segment (26/21) 2% 15 ~16% Corporate Specific distribution network by subsegment and opening of dedicated Corporate Centres in high potential regions Development of the product offering, primarily high value added products (derivatives, trade finance), in conjunction with Group subsidiaries Active client risk management and the integration with CA S.A. control systems 1 5 ~7% Retail Improvement in cross selling thanks to Group Factories (e.g. consumer credit, insurance) Opening of 1 new branches, and an ambitious marketing plan Entreprises Corporate Retail 25

26 An ambitious development plan 1 2 Expand and optimize network Integrate the banks and 22 branches 26

27 An ambitious development plan Cariparma and Friuladria will open around 1 retail branches and about 27 private and corporate centres by 29 Number Nombreof d'agences branches (Retail, Private Centres and Private Corporate et Corporate) Centres) 1. ~1 ~15 ~12 ~ Strengthening of the regional network Across regions traditionally covered by the Cariparma Friuladria Group Across other attractive neighbouring regions A coordinated strategy across the various client segments Opening of Corporate and Private Centres in areas covered by the new retail branches (ex-intesa + openings) A considerable impact in 28 with half of the openings taking place in this year Typical break-even point in 2.5 years for the new retail branches Agences Existing existantes Branches Ouvertures Corporate Corporate Openings Total Ouvertures Retail Ouvertures Private Openings Retail Private Openings 27

28 An ambitious development plan 3 1 Connect the Banks with Group Factories Integrate the banks and 22 branches 2 28

29 An ambitious development plan The Cariparma Friuladria Group is strengthening its relationships existing Italian subsidiaries, while developing new platforms Strengthening of already existing subsidiaries Creating new platforms FINAREF ASSURANCES ASSURANCES 29

30 An ambitious development plan The banks connection to Group Factories is being rolled out Business Lines Insurance Life Extension of the offering / Creation of a new platform ASSURANCES Property & Casualty Creation of an Italian subsidiary FINAREF ASSURANCES Credit Protection Standardisation of the offering Insourcing of administration 2 Specialised Financial Services Leasing Development of an Italian factory Factoring Setting up of Eurofactor Italy Consumer Credit Broader cooperation with Agos 3 Asset Management Strengthening of cooperation with CAAM 4 Corporate and Investment Banking Roll-out of the Calyon partnership 3

31 1 An ambitious development plan Insurance: ambitions of the Cariparma Friuladria Group Life: Acceleration of the activity Property & Casualty: Ex-nihilo creation of a company Credit Protection: Launch of a new offering Market Market* Market** Premiums Primes (M ) +5% p.a. +28% p.a. Primes (M ) +9% p.a. Premiums Start-up Premiums Primes (M ) +28% p.a. ( m) 2. ( m) 4 >1.8 ( m) 8 > >7 +9% p.a Buy-out of Fonsai s shares in Po Vita - Expansion of the product offering Po Vita with ex-intesa and Friuladria branches - Creation of a new platform - Creation of a company specialising in bancassurance Property & Casualty based on the Pacifica model in France - Expansion of the Finaref Assurances offering across the network - Insourcing of administration - Gradual increase in the penetration rate for both banks clients (*) Bancassurance market (**) Underlying mortgage market Sources : Datamonitor, Prometeia, Bain analysis 31

32 2 An ambitious development plan Specialised Financial Services: ambitions of Cariparma Friuladria Group Leasing: Development of an Italian factory Market Factoring: Creation of a subsidiary Market Consumer Credit: Cooperation with Agos Market Production ( m) (M ) +11% p.a. Factored CA Factoré (M ) % p.a. Receivables ( m) +22% p.a. >9 1.5 > % p.a. Encours Outstandings (M ) ( m) % p.a. >1. +12% p.a Ensure business continuity with Intesa Leasing - Develop a specific leasing structure - Create a facility in Italy - Increase imports/exports - Transfer processing of personal loans to Agos - Develop marketing initiatives for revolving credit - Launch new products: Cessione del Quinto (advances on salaries) Sources : Datamonitor, Bain analysis 32

33 3 An ambitious development plan Asset management: ambitions of Cariparma Friuladria Group Assets Actifs under sous management gestion distribués distributed par le by the Groupe Cariparma Cariparma Friuladria Friuladria Group ( m) (M ) % p.a. >17.7 Market +6% p.a Implement marketing initiatives to enable Nextra funds to be transferred to more innovative CAAM funds 5. Optimisation of the product mix Source: Prometeia, Eurisko, Bank of Italy, Assogestioni, Isvap 33

34 4 An ambitious development plan Corporates: an Italian market heavily biased towards SME, with strong complementarity between the Cariparma Friuladria Group and Calyon Number of Companies 1. ~91,5 8. ~3,1 ~6 * ~55 * ~95, % 2. Sales( m) > 5 Total Percentage Dette of vis-à-vis total oustandings des banques 51% 25% 12% 12% 1% Cariparma Friuladria Group Calyon Optimised coverage to meet all client needs (*) Companies with turnover over 25m are consolidated by groups Sources: Bain analysis, Aida and Mediobanca data 34

35 4 An ambitious development plan Corporates: ambitions of Cariparma-Friuladria Group Loans ( m) NBI ( m) Loans Prêts (M ) ( m) % p.a. >9.45 Market Marché* * +9% p.a. PNB NBI ( m) (M ) 3 +16% p.a. 8. > Corporate PME SME Corporate SME PME Increased cooperation between Calyon and the Cariparma Friuladria Group Implementation of a dedicated Corporate channel within banks Expansion of lending business, which is key in the relationships with SMEs (*) Prometeia, projection 35

36 4 An ambitious development plan Corporates: Broad cooperation between Calyon and the Cariparma Friuladria Group, particularly with regards to large clients Commercial approach: a single contact for each client, determined according to the fundamental needs and services required (no co-coverage of clients) Sharing of client data Preparation of integrated budgets Joint targeting and marketing Monitoring of client relationships Centralised risk management Systematic leverage of our regional proximity and of the Cariparma Friuladria Group s important corporate client base to increase the penetration of high value added products Strengthened relationships with CA S.A. and Calyon s international network Calyon and the banks bring their respective product-related skills, to systematically capitalise on the best practices Product engineering and marketing White-labelling for specific market products Technical/commercial support Back-office and reporting 36

37 Agenda: 27/21 development plan for the Cariparma Friuladria Group Build a competitive banking platform Italy: an attractive market The Cariparma Friuladria Group: one of the best banks in Italy A unique value creating integration process Implement our development plan and realize synergies An ambitious development plan The 27/21 Business Plan 37

38 Business plan Estimated synergies announced in December 26 stood at 155m, for an investment of 15m Reminder December 26 Communication 44% cost / income ratio by 21 with estimated profit before tax of ~ 97m Ambitions made possible thanks to: Strong synergies and a network expansion plan, which contribute 155m to profit before tax 13m in synergies: 5% from revenue and 5% from costs 25m contribution to pre-tax income coming from the network expansion plan An estimated 15m investment for the integration 38

39 Business plan Bank synergies in December 6 for 21 had been estimated at 155m (profit before tax) Estimated bank synergies announced in December 26 ( m) Reminder Bank Synergies synergies banques contribution - to profit au résultat before avant tax by impôts Revenue synergies: - Gradual alignment of ex-intesa branch performances on Cariparma and Friuladria s Growth in priority segments and broadening of the product range 65 Cost synergies: 1 - Cariparma s centralised IT platform to replace Intesa s platform Operational improvement and cost reductions for ex-intesa branch support functions Network expansion Synergies Income de Synergies revenus Synergies Cost Synergies de coûts Expansion Network Expansion du réseau Total 39

40 Business plan An additional 43m synergies identified for the banks in 21 (profit before tax) Additional bank synergies ( m) Synergies - Contribution au to profit résultat before avant tax by 21 ( m) impôt 21 (M ) Corporate segment: Improved growth of corporate clients via the creation of a dedicated channel (specialised business centres) and commercial synergies with Calyon 3 Business Lines Subsidiaries: Additional fee income from the distribution of products from Crédit Agricole Corporate Segment Segment corporate Filiales Business métier Line Subsidiaries Total 198m total synergies for the banks ( 155m + 43m), i.e. about 32% of 26 profit before tax for the Cariparma Friuladria Group 4

41 Business plan A significant improvement in profitability by 21 NBI Cost / Income ratio Profit before tax (M ) ( m) +7.7% p.a pts (M ) ( m) +12.9% p.a. 2. ~2. 5% 49,6% 1. ~1. ~43% % points improvement of risk-weighted assets ROE, increasing from 23% in 26 to over 3% in 21 41

42 Business plan Overall, the bank will remain a leader in Cost / Income ratio, despite competitors communicating up to 36% improvement NBI Cost / Income ratio Market: 6.4% Evolution Change in du NBI PNB (TCAM (CAGR 6-1, %) 15,% 12,5 1, 7.7% 7,5 5, 7.1% 6.7% 7.1% 6.6% Evolution Change in cost du coefficient / income ratio d'exploitation by bank type par (26-21) type de banque (26-21) 65% 59.7% 54.5% 49.6% 43,7% 47% ~43% % 54% 46.3% 61.3% 54% ,5, GRCP GCRP Multirégionaux Local Multi- Locaux Local Regional locaux Champions National Multirégionaux Foreign Multinationaux Leaders Regional étrangers GRCP GCRP Champions National Multirégionaux Foreign Multinationaux Leaders étrangers Regional Mulitrégionaux Italian Multi- Regional italiens Locaux Local Deviation Ecart -6.4pts -1.8pts -12.7pts -26.pts -7.3pts Including additional costs for over 5 new hires for IT systems, backoffices, central functions Sources: Annual reports and presentations to analysts, Bain analysis 42

43 Business plan The Cariparma Friuladria Group will enable Group Factories to generate 55m in synergies in addition to the banks synergies Additional Synergies from Group Factories ( m) Synergies Profit before tax (21, m) Additional synergies generated within the factories / subsidiaries of Crédit Agricole thanks to Cariparma s and Friuladria s distribution channels 2 14 BFI CIB SFS Insurance Assurances Asset Mgt Total Breakdown of synergies by business line 26% 24% 27% 23% 1% Note : CIB Corporate and Investment Banking SFS Specialised Financial Services 43

44 Business plan % of additional factory synergies is generated by replacing previous suppliers of the Cariparma Friuladria Group Levers Group Factory Synergies 1. Connection to Group Factories ( carve out ) + 27m* (49% of total) 2. Development of existing client base + 23m* (42% of total) 3. Development of new client base + 5m* (9% of total) Total = 55m* (*) 21 profit before tax 44

45 Business plan Overall synergies stand at 253m, a 6% improvement above November 26 estimates Total synergies (21 Profit Before Tax) Contribution to Crédit Agricole S.A. s profit before tax, group share: ~ 2m m - Incl. 85m from newly identified synergies +63% Banques Banks Nouveau New Total total Nov. Estimation 6 Business Filiales Line Estimate nov. 6 Subsidiaries Métiers 45

46 Insieme non per caso Questions & Answers 46