ACKNOWLEDGED LEADER IN RUSSIAN FINANCIAL MARKET ROSBANK March 2015
TABLE OF CONTENTS SOCIETE GENERALE GROUP GENERAL INFORMATION STRATEGIC PRIORITIES SOCIETE GENERALE IN RUSSIA ROSBANK FACTS AND FIGURES STRATEGY 2014-2017 AND STRATEGIC TARGETS CORPORATE SOCIAL RESPONSIBILITY March 2015 P.2
SOCIETE GENERALE GROUP GENERAL INFORMATION STRATEGIC PRIORITIES SOCIETE GENERALE IN RUSSIA March 2015 С.3 P.3
SOCIETE GENERALE GROUP: GENERAL INFORMATION Founded in 1864 in France One of the leading international financial groups; the largest asset outside France is Rosbank 32 mln clients in retail banking and financial services 1 More than 148 000 employees in 76 countries worldwide 1 Core business divisions: French Retail Banking Best Bank in France 2, Best Global Structured Products House 2, Best Equity House in France 3 International Banking and Financial Services (IBFS) Global Banking & Investor Solutions(GBIS) 1 Information as of end-2014 2 Euromoney Awards for Excellence, July 2014 3 Euromoney Awards for Excellence, 2011, 2012 March 2015 P.4
SOCIETE GENERALE GROUP: STRATEGIC PRIORITIES THREE STRATEGIC PRIOTITIES FOR THE GROUP FURTHER IMPROVE CLIENT SERVICE, MAINTAIN LEADERSHIP IN INNOVATION 2014 GROUP PERFORMANCE RESULTS 1 : NET BANKING INCOME: EUR 23.6 bn ASSETS: EUR 1308.2 bn CAPTURE GROWTH THROUGH BUSINESS DEVELOPMENT AND INCREASED SYNERGIES DELIVER SUSTAINABLE PROFITABILITY Businesses operating income up + 20.9% 2 Good control of operating expenses: -1.9% 2 vs. year 2013 Sharp decline in the commercial cost of risk: -25.2% 2 vs. year 2013 Fully loaded Basel 3 (CET1) ratio: 10.1% (10.0% at end-2013) One stock profit: 2.92 EUR 1 As of December 31 st, 2014. 2 When adjusted for changes in Group structure and at constant exchange rate March 2015 P.5
SOCIETE GENERALE GROUP IN RUSSIA 1872: first investments into Russian enterprises: forge and metallurgical works in Donetsk, French-Russian metallurgical works in St Petersburg, shipyard construction in Nikolaev 1910: foundation of Banque Russo-Asiatique with the largest network in Russia (175 outlets) 1917: termination of business in Russia 1973: return to Russia, opening of representative office in Moscow 1993: foundation of Banque Societe Generale Vostok (BSGV) the first foreign bank to acquire the General License from the Central Bank of Russia 2003: creation of BSGV Leasing and launch of retail banking services; BSGV becomes a universal bank 2004: introduction of specialized subsidiaries: Rusfinance Bank (consumer loans) and ALD Automotive (car fleet leasing and management) 2005: acquisition of DeltaCredit bank, one of the leaders on the Russian mortgage lending market 2006: introduction of SOGECAP (insurance services); acquisition of 20% minority share in Rosbank, one of the leading players in the Russian banking sector 2008 2011: gradual increase of the share in Rosbank (up to 82,4%); finalization of assets consolidation in Russia: January 2011 Rusfinance and DeltaCredit become 100% Rosbank subsidiaries June 2011 BSGV is merged with Rosbank July 2011 New united Rosbank starts operating 2012: 140 years of Societe Generale presence in Russia 2014: increase of the share in Rosbank (up to 99.4%) 2014: 150 years of Societe Generale activities in the world March 2015 С.6 P.6
SOCIETE GENERALE IN RUSSIA: STABLE GROWTH AND PROFITABILITY A SOLIDLY ANCHORED BANKING GROUP Positive contribution to the Group's net income in 2014 amounted to EUR 28 mln excluding the write-off of goodwill Credit portfolio as of January 1 st, 2015 amounted to EUR 9.4 bn Deposit portfolio as of January 1 st, 2015 amounted to EUR 6.7 bn One of the best platforms of corporate and investment banking, mortgage and car loan business, professional team of top managers Sustained results of self-funding: in Q42014 the total amount of bonds issued by the Russian banks of the group made RUB 31 bn (EUR 620 mln) Risk management and compliance in accordance with international standards PRIORITIES: ORGANIC GROWTH AND SUSTAINABLE PROFITABILITY Attractiveness of banking market in the medium/long-term perspective: under-banked population, natural resources dynamics, continued integration with Europe Focus on daily banking services, deposit collection and customer satisfaction in the retail segment Reinforcement of synergies for greater efficiency March 2015 P.7
SOCIETE GENERALE GROUP IN RUSSIA TODAY UNIVERSAL BANK CONSUMER LENDING One of 19 the core credit institutions 1 Top-51 important institutions of Russian payment services providers 1 One of the most reliable banks 2 #3 among the best banks in Russia and CIS 3 Top-10 in terms of capital, Top-12 in terms of assets among the Russian banks 4 1 According to CB RF, 2014, 2015 2 Forbes, 2015 3 Trade & Forfaiting Review, 2014 4 Interfax-100 Ranking «Banks of Russia 2014» One of the leaders in consumer lending market One of the leading banks in car lending MORTGAGE The first specialized mortgage commercial bank in Russia #4 in mortgage lending in Russia March 2015 С.8 P.8
SOCIETE GENERALE GROUP IN RUSSIA TODAY LEASING FACTORING Strong player on the leasing market in Russia INSURANCE Represented by two companies in Russia: Societe Generale Life Insurance Societe Generale Insurance (property and life insurance) SETTLEMENT CENTER United Settlements System More than 250 banks-participants More than 40 000 ATMs 2 nd biggest player in non-recourse factoring in Russia 5 th biggest factoring company in Russia by the assignment amount OPERATIONAL LEASING Leader in operational leasing Long-term lease, full service and car fleet management 19 000 cars under management in Russia INKAKHRAN Full range of services for cash management The company was founded in 1991, operates in 13 regions of the Russian Federation March 2015 С.9 P.9
ROSBANK FACTS & FIGURES STRATEGY 2014-2017 AND STRATEGIC TARGETS CORPORATE SOCIAL RESPONSIBILITY March 2015 P.10
ROSBANK: FACTS AND FIGURES THE LARGEST INTERNATIONAL FINANCIAL STRUCTURE IN RUSSIA Societe Generale international financial group is the major shareholder of Rosbank (99.49%) STABLE AND SOLID FINANCIAL INSTITUTE Universal bank with global reach focused on all segments of clients BANK WITH A FULL RANGE OF PRODUCTS AND SERVICES, HAVING MARKET EXPERTISE, GIVING SUPPORT IN INTERNATIONAL ACTIVITY Trusted partner aimed at long-term relationship sharing the goals of its customers and striving to grow together with them March 2015 P.11
ROSBANK FACTS AND FIGURES Included in the Core Russian banks list of 19 banks (a letter of CBR dated 10.07.2014) Included in the Core Russian Payment services providers list of 51 institutions (a letter of CBR dated 16.01.2015) Included in the CBR list of 136 banks admitted to run accounts of companies of strategic importance, in accordance with the Federal Law- 213 (the list is published by the Central Bank of Russia dated 24.10.2014, updated on a quarterly basis) National Award of the Association of Russian Banks in the category "Contribution to the development of banking services for the population" (December, 2014) One of the most reliable banks according to the Forbes magazine (Forbes, 2015) #1 among the most expensive banking brands with foreign capital in Russia (Brand Finance rating, 2015) #2 «Best Bank in Trade Finance in Russia and the CIS 2014» (Trade & Forfaiting Review Excellence Awards, 2014) Rosbank Depositary - Best Sub-Custodian in Russia (the Global Finance magazine, 2014) #2 in market placement underwriting (Cbonds, 2014) #3 in corporate underwriting (Cbonds, 2014) #4 in market placement arrangements (Cbonds, 2014) Strong clients database* >3.3 mln individual clients > 100 000 corporate clients One of the largest retail networks in Russia* 332 cities and towns 71 regions of RF >550 outlets >3000 own ATMs >40 000 ATMs of other partner banks of ORS network * As of 01.01.2015 March 2015 P.12
SOLID FINANCIALS: KEY INDICATORS FINANCIAL RESULTS 1 Net profit RUB 9.7 bn (+50%) Capital RUB 114.3 bn (+28%) Assets RUB 996 bn (+33%) Credit portfolio RUB 486 bn (+7%) Clients accounts RUB 449 bn (+25%) Normative of capital adequacy as of 01.01.15 1 : H1.1 7.6% (Central Bank min 5%) H1.2 7.6% (Central Bank min 5,5%) Долгосрочный Краткосрочный Финансовой устойчивости Fitch Долгосрочный рейтинг дефолта эмитента Краткосрочный Baa3 3 D BBB- F3 H1.0 13.45% (Central Bank min 10%) ) 1 As of January 1 ST, 2015 (RAS) March 2015 P.13
KEY PRIORITIES: PROFITABLE BUSINESS ON A SUSTAINABLE PLATFORM Rosbank has solid assets but needs to deliver substantial results Strong international brand Access to international expertise Significant client base Universal product range Wide network coverage Develop client base Increase functionality and usability of distant channels Increase sales productivity of network Upgrade processes and simplification of organizational structure Strong universal bank with global reach SG Russia ROE 14% by 2016 >2.7 mln of active clients + 30% of large and medium-sized corporates by 2017 NEW STRATEGY OF ROSBANK 2014-2017 IS BASED ON SOCIETE GENERALE GROUP STRATEGIC PLAN PRESENTED IN MAY 2014 March 2015 P.14
RETAIL BANK: INTUITIVE, CONVENIENT, ATTENTIVE, RELIABLE STRATEGIC INITIATIVES Acquisition machine Increase walk-in customers up to 870,000 annually Reanimate activity on payroll, with dedicated sales force and new services providing Improve cross-selling on Rusfinance, DeltaCredit and FILS partrners customers Obsession for Quality Introduce service commitments (focus on service speed and quality) Measure customer satisfaction and follow-up issues raised Train and motivate transversally Lending Efficiency Upgrade banking products and services for retail customers Automate processing on credit products Structure sales management Smart-Marketing Launch attractive daily banking (payments) offering Increase the number of clients with daily banking operations with accounts up to 55% Stimulate move to non-cash operations Service Differentiation Differentiate service for high network individuals (Affluent) Upgrade remote channels and move customers actively: 80% of all clients transactions to be carried out through remote channels, service 24/7 Integrate all customer service channels March 2015 P.15
RETAIL BUSINESS: STRONGER INTEGRATION OF SOCIETE GENERALE ENTITIES IN RUSSIA Mortgage lending Lending at car dealers centers Rosbank is the key bank of the Group, represents a universal business model, focuses on daily banking transactional products and services development (current accounts including overdrafts, loan repayments, payments, transfers, currency exchange etc.) Clients offer extension thanks to United settlement system opportunities and insurance products from Societe Generale Insurance DeltaCredit to become mortgage platform of Societe Generale group in Russia. Rosbank to propose to its customers DeltaCredit products and leverage on DeltaCredit expertise in product design, marketing, customers advice and servicing Rusfinance Bank to centralize and manage the relationship with car makers and dealers, to keep developing consumer lending. Rosbank to propose to its customers car loans in its outlets ROSBANK TO FOCUS ON DAILY BANKING TRANSACTIONS DEVELOPMENT, RUSFINANCE BANK AND DELTACREDIT TO BECOME THE CENTERS OF COMPETENCE ON COLLATERIZED LENDING March 2015 P.16
CORPORATE BUSINESS: FOCUS ON SEGMENTATION OF TARGETED CUSTOMERS MAJOR COMPANIES (TIER 1) Major companies >16 >16 МЛРД РУБ*. BN RUB* Grow organically in existing profitable business Develop relationship with clients among 400 largest Russian companies Grow potential based on existing and new relationships Sustain ROE through X-sell approach of all bank products Integrate Top corporate clients approach with Societe Generale Corporate & Investment Banking specialized business lines (SG CIB) Tier 2 Large Copr & MidCap MidCap 1,5-16 МЛРД 1.5-16 BN RUB* РУБ*. Mid CaС 0,4-1,5B 0,4-1,5 RUB* МЛРД РУБ*. 0.4-1.5 BN RUB* LARGE CORP & MIDCAP (TIER 2) Push Transactional Banking Increase client base by 30% by 2017 Increase active client base Tier 2 / MidCap by 800 customers Become Bank # 3-4 with increased share of wallet for selected clients with appropriate risk commitments Develop our franchise with MidCap clients in regions with a focus on Transaction Banking Enhance Trade Finance teams to be recruited in each region * Annual turnover March 2015 P.17
CORPORATE BUSINESS: ORGANIC GROWTH OF PROFIT, RISKS REDUCTION, FOCUS ON CROSS-SALE STRATEGIC INITIATIVES Streamlined Corp Coverage Differentiate coverage model Unify regional teams Corporate credit process Increase exposure to selected clients to support growth and share of wallet about 200 large and medium-sized companies by 2017 Adapt credit process to nature of clients/commitments Trade finance enhancement Increase Trade Finance volume up to RUB 100 bn by 2017 Strengthen Trade Finance sales force in Regions Offer competitive products and improve correspondent relationship Cash Management Upgrade regularly Cash Management platform, including clients liquidity management products and modernization of Client-Bank system March 2015 P.18
STRATEGIC TARGETS FOR THE NEAREST PERSPECTIVE LEADING UNIVERSAL BANK WITH FEDERAL REACH SUSTAINABLE GROWTH IN ALL BUSINESS SEGMENTS DAILY BANKING PARTNER FOR RETAIL CLIENTS STABLE GROWTH OF ACTIVE CLIENTS BASE ORGANIC RISK-FREE GROWTH IN CORPORATE BUSINESS EXEMPLARY CLIENT SERVICE AND LEADER IN INNOVATIONS EFFICIENT NETWORK STRONGER INTEGRATION OF SOCIETE GENERALE ENTITIES IN RUSSIA March 2015 P.19
ROSBANK AND SOCIETY "Together we can do more" regional charity program of the bank aims at bringing together efforts of non-profit organizations and Rosbank while providing regular help to people with disabilities of all ages, namely by creating conditions for their socio-economic integration. Among the Program priorities are improving quality of adaptation and social integration of people with disabilities, development of inclusive education for these people, including additional education, as well as removal of obstacles for their employment. In 2014 the Bank supported 7 projects in St. Petersburg, Yekaterinburg, Samara, Krasnoyarsk and Krasnodar. Everyone has the right to help" internal corporate program has been operated for more than 10 years, the Bank matches employees monetary donations 1:1. Every year employees of Rosbank and other companies of Societe Generale group in Russia take part in a charity run within a global social project Citizen Commitment Week. More than 300 participants get together to support Downside Up charity to help families bringing up children with Down syndrome. For three years the charity foundation raised 2.8 mln rubles for the program of early intervention center. In the year of its 150th anniversary, the Group united all employees of Societe Generale in the world by the project Citizen Commitment Games. Employees in Russia took part in mini-football and table tennis tournaments and collected for charities more than 600 000 rubles. PRIORITY LINES Help for people with limited abilities Programs encouraging employees to support charities March 2015 С.20 P.20
CULTURE Keeping up with Societe Generale traditions. In 2014 Societe Generale contemporary art collection was partly presented in Russia, in Multimedia Art Museum, Moscow for the first time. Rosbank has been the partner of projects of MAMM, one of the most famous institutes of modern art in the country. Since 2006 the Bank has been the member of Moscow Kremlin Museums Friends Society and helped to organize unique international exhibition projects. At the end of 2014 Rosbank initiated and presented to Muscovites and Moscow s visitors a festive public art object which was installed in front of the central entrance to Gorky Park. Team of young architects created an unusual sculpture in the form of an ice-cream cornet turned upside down, 15.5 meters height and 5 tons weight. It greeted visitors of the park during the winter season. PRIORITY DIRECTIONS Contemporary Art Classic music March 2015 С.21 P.21
ENVIRONMENT PRIORITY LINES Responsible approach in using resources green office Environment protection Waste management Separate collection of waste (paper) Expired batteries collection for recycling Promoting employees eco-behavior: Eco-labels in Rosbank offices Newsletters on environment issues Responsible procurement Biodegradable packages and pens for souvenir campaigns Rosbank is included into the project of Societe Generale group to reduce its own carbon footprint March 2015 С.22 P.22
CONTACTS PJSC ROSBANK Head Office: 34, Mashy Poryvaevoy str. Moscow 107078 Russia 8 495 921 01 01 8 800 200 66 33 www.rosbank.ru mailbox@rosbank.ru Follow us Facebook Vkontakte Twitter March 2015 P.23