24/ 01 / 2008. EUR 5.5 bn CAPITAL INCREASE



Similar documents
11/ 02/ Société Générale Group Strategic Outlook February 2008

BOŚ S.A. GROUP Q3 2012

Gjensidige Insurance Group Q and preliminary 2008

Recommended Offer for Alliance & Leicester. 14 July 2008

BOŚ S.A. GROUP 1H 2012

Update following the publication of the Bank of England Stress Test. 16 December 2014

Vallourec announces the launch of a rights issue for c. 480 million with shareholders preferential subscription rights

Success of Bureau Veritas Initial Public Offering Offering price set at per share

Not for distribution in the United States, Canada, Australia or Japan

SBERBANK GROUP S IFRS RESULTS. March 2015

FONDUL PROPRIETATEA S.A.

XXL ASA - Announcement of terms in the Initial Public Offering

DEPFA Group. Annual Results 2014 Presentation. 1st April 2015 AUDITED FIGURES

Global Investments Limited. FY2014 Financial Results

Intertrust N.V. announces the indicative price range, offer size, start of offer period and publication of prospectus of its planned IPO

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

Sberbank Group s IFRS Results for 6 Months August 2013

TRANSACTION INTRODUCTION SCITEC NUTRITION REMEDICA

ING OFFICE FUND Acquisition of Bastion Tower, Brussels and Institutional Placement of $70.0m

ROSNEFT INVESTOR DAY FINANCIALS. Svyatoslav I. Slavinskiy April 23, 2013

Cheuvreux conference. Jean-Paul Chifflet CEO. 19 September 2012

Deutsche Wohnen AG.» Investor Presentation. September 2010

Erste Group Sale of non-core insurance business 26 March 2008, Vienna Preferred partnership with Vienna Insurance Group

Commerzbank: Operating profit improved after nine months of 2015 to EUR 1.5 bn CET 1 ratio increased to 10.8%

Iberdrola USA-UIL merger. February 2015

Focus on fleet customers SAF-HOLLAND Annual Financial Statements 2013

Deutsche Wohnen AG.» 1st Quarter Conference Call, 31 May 2010

Analysts & Press Presentation. Fabrizio Viola - CEO Bernardo Mingrone - CFO

Deutsche Wohnen AG.» Full Year Results Conference Call, 26 March 2010

Gjensidige in brief. Attractive position in Nordic GI. Balanced retail portfolio. Private and SME exposure 80 % direct distribution

Tetragon Financial Group Limited ( TFG )

Disclaimer. purposes only. Not for distribution in the United States, Japan, Australia, Italy or Canada.

Formation of Amlin Bermuda and rights issue to raise 215 million (net) November 2005

Gjensidige Bank ASA Investor Presentation March 2013

Gjensidige Pensjonsforsikring AS (GPF) Investor presentation. June 2016

Re: Agreement to Commence the Process for the Acquisition of Amlin, a UK Insurance Holding Company by Mitsui Sumitomo Insurance

NICKEL MOUNTAIN GROUP AB

Analysts and Investors conference call Q results 15 May 2014

Investor & Analyst Presentation Acquisition of Centor US Holding Inc. Uwe Röhrhoff, CEO Rainer Beaujean, CFO Duesseldorf, July 28, 2015

Capital Mortgage Series

ASR Nederland NV Assigned 'BBB+' Rating; Ratings On Core Insurance Operations Affirmed; Outlook Stable

2006 BCSECCOM 692. Applicable British Columbia Provisions Securities Act, R.S.B.C. 1996, c. 418, ss. 34(1)(a), 48, 61 and 76

QSC AG Company Presentation Results Q Cologne, May 9, 2011

Hoist Finance announces its intention to launch an initial public offering and listing on Nasdaq Stockholm

The Scottish Investment Trust PLC

Deutsche Bank Stefan Krause

Monthly European ETF Market Trends MAR 2015 in brief

BUY Target: 215p. Strategic impact: cross-selling. Financial impact: good value

CREDIT AGRICOLE S.A. Georges Pauget Chief Executive Officer

2008 Interim Results September 2008

Société Générale The Premium Review Conference. 02 December 2009

Numericable Group Company presentation

DETAILED Q RESULTS FOR PROVEN WINNERS

Bank of America Merrill Lynch 2013 Banking & Financial Services Conference. Robert J. McCann CEO, UBS Group Americas CEO, Wealth Management Americas

Earnings Conference Call Q Update Wednesday, May 25 th 2016

Commerzbank: Operating profit more than doubled to EUR 685 m in the first quarter of 2015

Deutsche Wohnen AG.» German Jour Fixe 1-1 Conference Merrill Lynch. London, 27 April 2010

Adjusting financial policy

STRENGHTENING THE CAPITAL POSITION

SAF-HOLLAND Annual Financial Statements Detlef Borghardt, CEO Wilfried Trepels, CFO. March 14, 2013

Investor Presentation: Pricing of MRU s Private Student Loan. July 7, 2008 NASDAQ: UNCL

IPH LIMITED IPH LAUNCHES A$60 MILLION UNDERWRITTEN INSTITUTIONAL PLACEMENT AND SHARE PURCHASE PLAN

Acquisition of Westdeutsche ImmobilienBank AG

STANDARD LIFE EUROPEAN PRIVATE EQUITY TRUST PLC

Paris Orléans. Full year 2013/2014 results presentation

TACTEX F1 PRIVATE EQUITY FUND LP SUMMARY OF PRINCIPAL TERMS

SOCIETE GENERALE 2015 BANKING, INSURANCE & DIVERSIFIED

Deutsche Wohnen AG. Investor Presentation. December 2011

For personal use only

Total Capital International Period from January 1 to March 31, 2014

PRESS RELEASE

Solid operating profit in Q April 2016

Geoff Miller CEO. GLI Finance. February 2014

Reliance Commercial Finance. Loan Against Property. September 2015

ING Office Fund Extraordinary Unitholder Meeting

Annual Financial Results Presentation for year ended 30 June October 2014


Why Credit Suisse? Private Banking & Wealth Management 3Q2014

3I INFRASTRUCTURE LIMITED (THE COMPANY ) PLACING AND OPEN OFFER OF 108,132,277 NEW ORDINARY SHARES AT 106 PENCE PER NEW ORDINARY SHARE

H IFRS Results. August 2014

EUROCASTLE INVESTMENT LIMITED. Proposal to Convertible Debt Investors February 28, 2013

MERKO EHITUS GROUP Annual General Meeting of Shareholders. 29 April 2015 Nordic Hotel Forum, Tallinn

Tier 2 Fixed Income Roadshow London / New York / Boston / Chicago

RESULTS FIRST QUARTER 2015

Deutsche Bank 2014 Global Financial Services Investor Conference

How To Sell A Share In Amsterdam Molecular Therapy

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA.

Acquisition of Fortis Corporate Insurance N.V. June 3 rd 2009

Q analyst and investor presentation. Tuesday 26 January 2016

Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2012 Annual Results Presentation. 19 March 2013

S.A. 32,000,000,000 PROGRAMME FOR THE ISSUANCE OF DEBT INSTRUMENTS

Sopra Group announces the accounting impact of the exceptional cash distribution and of the distribution of Axway Software shares

Recommended Acquisition of Networkers International plc Presentation to Analysts & Investors

AIMS AMP CAPITAL INDUSTRIAL REIT CLOSE OF PRIVATE PLACEMENT OF NEW UNITS

Nordic Waterproofing announces its initial public offering on Nasdaq Stockholm and prospectus in connection therewith

MANULIFE US REAL ESTATE INVESTMENT TRUST. (a real estate investment trust constituted on 27 March 2015 under the laws of the Republic of Singapore)

Dividend distribution in connection with the recommended exchange offer

Transcription:

24/ 01 / 2008 EUR 5.5 bn CAPITAL INCREASE

Disclaimer Participants are invited to read the prospectus to be approved by the Autorité des Marchés Financiers or AMF (French Securities Regulator) that will be available ailable free of charge from Société Générale 17, cours de Valmy 92972 Paris La Défense,, or from any financial intermediary and on the websites of Société Générale (www.socgen socgen.com or www.ir ir.socgen.com) and the AMF (www.amf amf-france.org). The prospectus will consists of the registration document filed with the AMF on March 6, 2007 under No. D.07-0146, 0146, its addendum filed with the AMF on March 26, 2007 under No. D.07-0146 0146-R01 and the three updates filed on May 25, 2007, August 31, 2007 and November 13, 2007 under Nos. D.07-0146 0146-A01, D.07-0146 0146-A02 and No. D.07-0146 0146-A03, respectively, as well as an offering circular ("note d opération"). The prospectus will include important information on Société Générale, érale, including its most recent available financial statements and a description of its activities, its strategy, its management and the risk factors relating to its activities. No representation or warranty is made as to the accuracy, completeness or fairness of the information or opinions contained in this t presentation. None of Société Générale,, its affiliates, advisers or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, from use e of this presentation or its contents or otherwise arising in connection therewith. This presentation is not, and is not part of, an offer or a solicitation of an offer to subscribe for or to purchase securities in the United States or in any jurisdiction where such offer would conflict with applicable laws and regulations. Neither this presentation nor any of its contents may constitute a contract or any type of undertaking. The information included in this presentation cannot be relied on for a decision to invest or not in Société Générale securities. When taken in connection with any offering of securities, such a decision may only be taken on the basis of a final prospectus or the offering documents that will be published in connection with such offering. This presentation is being supplied to you personally and solely for your information. It may not be further copied, distributed or passed on (internally or not), directly or indirectly, in whole or in part, to any other person. The distribution of this press release in certain jurisdictions may constitute a violation of applicable a laws or regulations. In particular, this presentation may not be published, distributed or disseminated in the United States (including its territories and possessions, each State of the United States and the District of Columbia), Australia, Canada or Japan. The shares and the securities of Société Générale mentioned in this presentation have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement under the Securities Act. There will be no public offer in the United States. This presentation does not contain or constitute an invitation or solicitation to invest equity or debt securities issued by Société Générale or by a direct or indirect subsidiary of Société Générale (thereafter Société Générale Securities ). This presentation is directed only at persons who o (1) are outside the United Kingdom, (2) have professional experience in matters related to investments within the meaning of to Article 19(5) of the Financial Services and Markets Act 2000 (Final Promotion) Order O 2005, as amended (the "Order") ; (3) are persons falling within Article 49(2)(a) to (d) (high net worth companies,, unincorporated associations, etc.) of the of the Order and (4) are persons to whom an invitation of inducement to engage in investment activity within the meaning of Article 21 of the Financial ncial Services and Markets Act 2000 in connection with the issuance or sale of Société Générale Securities may otherwise be communicated (together Qualified Persons ). This presentation n may not be acted or relied upon by persons who are not Qualified Persons. Any investment activity referred to in this presentation is only authorized for Qualified Persons and will be denied to any other persons. This presentation contains estimates and forward-looking statements, including, without limitation, regarding the estimated 2007 financial results of Société Générale,, its financial situation, strategy, management plans and objectives. These estimates and forward-looking statements involve known and unknown risks, uncertainties s and other factors, which may cause actual results, performance or achievements of Société Générale,, or industry results, to be materially different from those expressed or implied by these estimates and forward- looking statements. These estimates and forward-looking statements speak only as of the date of this presentation. n. 2

EUR 5.5 bn capital increase Exceptional loss Loss on fraudulent and concealed positions Impact on pre-tax income: EUR -4.9 bn Positions fully closed Additional writedowns Additional write-downs on its super-senior tranches of CDO portfolios: EUR 1.1 bn Additional write-downs on exposure to monoline insurance companies: EUR 550m (including EUR 50m on ACA) Additional unallocated provision of EUR 400m for the above exposures Write-downs established in conjunction with auditors Positive 2007 net income After the integration of these exceptional items, estimated 2007 net income of around EUR 0.6-0.8 bn Dividend in line with the Group s target of 45% pay-out Capital increase Amount: EUR 5.5 bn Fully underwritten by JPMorgan and Morgan Stanley 3

Presentation of the operation s characteristics Size and structure Capital increase of EUR 5.5 bn Capital increase with preferential subscription rights Use of funds raised Strengthen the Group s capital base Pro forma Tier One ratio at end 2007 before capital increase: 6.6% Tier One ratio of 8.0% proforma for the capital increase and Rosbank acquisition Terms & conditions The terms, conditions and timetable will be communicated at a later date Syndicate JPMorgan and Morgan Stanley Fully underwritten by banking syndicate 4

Losses on a fraudulent and concealed position Deliberate circumvention of Group control procedures by a trader in order to conceal a fraudulent directional position in 2007 and 2008 using fictitious hedges Investigations were carried out by the Group on January 19th and January 20th, and further to actions taken, there is no residual exposure in relation to this position Given the size of this position and very unfavourable market conditions, the negative impact on Group pre-tax income is EUR 4.9 bn A thorough analysis of all positions in the concerned department confirmed the isolated and exceptional nature of this fraud Additional control procedures were immediately implemented 5

Additional write-downs and losses on exposure at risk The worsening of the US residential mortgage crisis led to a revision of cumulative loss assumptions on unhedged CDO portfolios An additional EUR 1.1bn loss should be posted in Q4-07 The remaining exposure on these portfolios after write-downs is EUR 3.6 bn Write-downs are consistent with valuation levels for the ABX indices Write-downs of EUR 0.55 bn booked in Q4-07 related to counterparty risk on US monoline insurers Additional unallocated provision in relation to the above exposures of EUR 0.4 bn As a result, the Group will post a total EUR 2.05 bn write-down in Q4-07 The RMBS subprime portfolio, which is directly valued using market parameters, has been hedged, written down or sold Exposure of EUR 550m at September 30th 2007 Residual exposure of approximately EUR 35m at the end of 2007 The consistency of the modeling and the parameters has been reviewed by the Group s auditors 6

Exposure at risk to US residential mortgage risk CDO: AAA super senior tranches portfolio # 1 portfolio # 2 portfolio # 3 Gross exposure at 31/12/07 in EURm 1,401 1,736 1,717 Attachment point 31% 15% 32% Underlying mezzanine high grade mezzanine % of underlying subprime assets 84% 53% 73% o.w. originated in 2005 and earlier 53% 20% 62% o.w. originated in 2006 31% 20% 6% o.w. originated in 2007 1% 12% 5% Write-downs recorded in 2007 (1) -458-629 -164 % total of CDO depreciations (2) 32% 36% 9% Net exposure at 31/12/07 in EURm (3) 955 _ 1,116 1,554 (1) Write-down at average exchange rate for each quarter (2) Net of hedging by subordination (3) Exchange rate exposure at December 31st 2007 7

Cumulative losses on subprime assets within CDOs and sensitivities 2005 2006 2007 Impact on NBI Assumptions for cumulative Q3 07 losses 9.1% 14.6% 14.5% EUR -167m for 9M 07 Assumptions for cumulative Q4 07 losses 9.0% 23.0% 25.0% EUR -1,250m for FY 2007 Sensitivity + 10% cumulative losses for each year of production Impact on NBI EUR -431m (1) (1) : Impact of average exchange rate in Q4 07 Assumptions for total losses for the US residential mortgage sector Approximately USD 200 bn in October 2007 Approximately USD 350 bn in January 2008 8

Write-down rate for underlying subprime RMBS Depreciation rate credit stress test Depreciation rate based on ABX indices Production 2005-25% NA Production 2006 & 2007 A and above -62% -57% BBB and below -100% -82% CDO tranches invested in CDOs have been fully written down 9

Counterparty risk exposure to monolines In EUR bn Gross counterparty exposure 1 & 2 1.8 CDS bought from banks -0.6 Other 5 monolines 21% MBIA 30% Net counterparty exposure 1.2 Mark-downs -0.5 FGIC 20% Net residual counterparty exposure 0.7 AMBAC 29% (1) Based on valuation methodologies consistent with those applied for uninsured assets (2) Including EUR 1.35 bn gross counterparty exposure related to a EUR 7.9 bn US mortgage related nominal exposure, of which EUR 4.3 bn subprime (vintages : 3% 2007, 21% 2006 and 76% 2005 and earlier) 10

Two business lines impacted SG CIB: net income affected by a fraud and asset write-downs Net loss of around EUR 2.3 bn in 2007 related to an exceptional fraud and asset write-downs Client franchises remain unaffected: equity derivatives, financing The sales and the trading activities (excluding the one-off loss) have proved their resilience to the current difficult market conditions SGAM: a continued challenging environment Significant outflows from French dynamic money-market funds (EUR -6.3bn). The Group decided to ensure the liquidity of its funds for the benefit of its clients The integration of the corresponding asset write-backs have led to write-downs or losses leading to a slightly negative net income for SGAM in Q4-07 For 2007, SGAM net income should remain at around EUR 150m 11

Very good results in all other business lines The Group s other businesses, which represent around two thirds of the Group s capital allocated to the core businesses, are expected to post very good results The French Networks are expected to generate full-year revenue growth of around +4.7% (excluding PEL/CEL provisions and Euronext capital gain) with solid net interest income and a lower cost-income ratio. The performance of International Retail Banking remains strong (around 40% yoy net profit increase) due to the development strategy implemented in the last few years and resulting dynamic competitive positions in high growth banking markets. Excellent performances are once again expected at the Group s other businesses, in particular Financial Services and Private Banking. The Corporate Centre will post capital gains from disposals of around EUR 300m (before tax) on its equity portfolio. 12

GROUPE SOCIETE GENERALE High value creation for shareholders Total return for shareholders over 8 years for the largest banking ng groups in Europe as at December 31 st 2007 (yearly basis) -5% 0% 5% 10% 15% Average annual performance, of the largest European banking groups by market cap, with net dividend reinvested in shares. SOCIETE GENERALE BNP PARIBAS UBS RBS INTESA SANPAOLO 7.7% 6.8% 6.7% 11.9% 10.1% SCH 6.6% A shareholder holding Societe Generale from 31/12/99 to 31/12/07 would have received a cumulative total return of 145.5% over the period, representing an average annual total return of 11.9%. BARCLAYS UNICREDITO HBOS BBVA HSBC DEUTSCHE BANK CREDIT SUISSE 1.1% 5.9% 5.6% 5.5% 5.0% 4.3% 3.1% Sources: Datastream LLOYDS TSB 0.6% 13

Conclusion Losses are concentrated in a limited number of market activities Most of the Group's businesses continue to generate strong growth and post high profitability The capital increase, as well as the corrective measures which have already been taken will allow the Group to pursue its development while maintaining the balance between its activities 14

24/ 01 / 2008