Crédito Agrícola Group Meet your partner in Portugal A Brief Presentation
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 2
The Crédito Agrícola Group has a remarkable century-old history in Portugal Over 100 years of history generating value for members, customers, local communities and employees 1896 The first agricultural co-operative credit law is created to serve farmers seeking funds. 1911 Crédito Agrícola was formally created in Portugal, under a co-operative structure. Its model, notwithstanding adaptations from time to time, is still current. 1929 For political reasons, control over agricultural loans and other specialized credit was transferred to a State-owned Financial Institution. 1978 The National Federation of Agricultural Co-Operative Credit Institutions (FENACAM) was created to support and represent the interests of its members, both national and internationally. 1976 Following the revolution in 1974, all private financial institutions were nationalized, except for Crédito Agrícola and non-portuguese financial institutions. 1984 Caixa Central is founded to become the financial head of the Group. 1982 Crédito Agrícola reaches autonomy from the Stateowned Bank and the network s dispersion reaches its peak with 223 local banks. 1992 Beginning of international business activity. 1991 Caixa Central was empowered with the mission of supervision, guidance and financial representation of SICAM (comprising the local banks and Caixa Central itself). 2011 Crédito Agrícola celebrates its 100th birthday. 1994 Caixa Central broadens its scope of activities (universal bank) and invests in other businesses (beyond retail banking) to provide a global financial service. 2013/2015 Crédito Agricola begins a reorganization process as part of a corporate strategy to reinforce the Group s business and positioning in Portugal and abroad. 3
Comprehensive geographical coverage Crédito Agrícola Group s Current Network Footprint The Crédito Agrícola Group covers most of continental Portugal and the Azores Islands 1.2 MILLION CUSTOMERS Crédito Agrícola Group s presence is visible in 291 out of 308 municipalities in Portugal (94%) through a network of nearly 700 branches complemented with automatic teller machines (ATM). 400,000 MEMBERS 700 BRANCHES Crédito Agrícola covers 640 Portuguese parishes out of 3,092 (21%) with branches and complements this network with 770 ATM off-premises. In 622 parishes, Crédito Agrícola has no competition and: - In 222, Crédito Agrícola has the only existing branch - In 400, the only connection to the banking system is provided by a Crédito Agrícola s ATM. 4
The Group has accelerated the process of mergers to reach the optimal scale to act in each local market Local Banks: Number and Dimension (2003-2014) 12 2003 2004 2005 67 72 82 2006 92 2007 103 2008 117 2009 128 2014 162 9 6 3 Average number of locations per Local Bank 125 120 115 110 105 100 95 90 85 80 Net Assets per Local Bank (EUR Million) Number of Local Banks Some Local Banks have decided to merge in order to reach the optimal dimension, not only in terms of organizational structures (e.g. commercial, risk, operational support), but also in terms of capital structure to finance corporate projects on a regional scale. 5
The Crédito Agrícola Group comprises 83 Local Banks, Caixa Central, Specialized Companies and Fenacam The Crédito Agrícola Group Shareholding Structure Crédito Agrícola Group SICAM Local Bank (CCAM) Local Bank (CCAM)... 100% Head of the Group (Caixa Central) FENACAM Holding (Crédito Agrícola SGPS) CA Serviços, ACE CA Vida, SA CA Imóveis, Lda CA Informática, SA CA Seguros, SA CA Consult, SA CA Gest SGFIM, SA Agrocapital SCR, SA Participations in Funds Participations in Companies and other Funds 6
Local Banks 83 Local Banks ( CCAM ) represent the core of the Crédito Agrícola Group, with: > 400,000 Members > 1,200,000 Customers SICAM Sistema Integrado do Crédito Agrícola Mútuo ( SICAM ), develops Bancassurance activities and sells other finantial products and services. Insurances (CA Seguros, SA / CA Vida, SA) Non-life and Life Insurance companies use the Group s retail network to distribute their offer which is widely recognized in the market. Assets Management (CA Gest SGFIM, SA) Fund and Assets & Liabilities Management Private Equity (Agrocapital SCR, SA) Private equity company that manages risk capital funds invested in industries such as agriculture and forestry. FENACAM Federação Nacional das Caixas de Crédito Agrícola Mútuo, was the first structure with national coverage aiming to preserve the Local Banks ( CCAM ) interests and to represent them in Portugal and internationally. Head of the Group (Caixa Central) Caixa Central de Crédito Agrícola Mútuo, CRL, is a co-operative bank with responsibility regarding the Group s coordination and joint banking strategy development, institutional representation (including domestic clearing and capital markets), supervision and guidance (as empowered by the Central Bank), Group s treasury and liquidity management, shared services provision and retail bank for the Lisbon and Oporto markets. Software & IT / Communications (CA Informática, SA / CA Serviços, SA) Responsibility for providing software development services and IS/IT and communications equipment purchasing services provision (shared services). 7
SICAM is represented by Caixa Central, upon which powers were conferred in the areas of oversight, intervention and guidance of banks 0.10% (1) FENACAM 1.11% Caixas Associadas SICAM 100% Caixa Central 100% 100% CCAM Gestão de Investimentos Unipessoal Lda. Crédito Agrícola SGPS CA Informática 79.20% 20.25% 0.58% 100% 57.26% (2) CA Finance CA Vida 32.66% 86.15% 0.98% CA Serviços 12.27% FCR Central Frie FCR Agrocapital 1 28.57% 27.78% 96.72% 100% 10.00% CA Seguros CA Imóveis 0.68% 60.74% 13.97% FII Imovalor CA FII CA Arrendamento Habitacional 39.26% 86.03% 3.33% 100% CA Gest 7.13% FII CA Imobiliário 92.77% 66.67% Agrocapital SCR 100% CA Consult (1) FENACAM owns 98.77% of its own shares > total GCA = 99.98%. (2) In dissolution process. Full consolidation method Equity method Updated to 30.04.2015 8
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 9
Crédito Agrícola is one of the leading Portuguese financial groups, with net assets over EUR 15 Billion Crédito Agrícola Group s Key Financials (In EUR Million; as of 31st Dec) 2010 2011 2012 2013 2014 Resources from customers (on & off balance) 10,927 10,944 11,413 11,763 12,513 of which Deposits 9,939 9,821 10,113 10,123 12,537 of which Funds and Capitalization Insurance (a) 988 1,123 1,300 1,640 1,976 Loans to Customers (gross) 8,606 8,587 8,365 8,199 8,147 Loans to Customers (net) 8,041 7,914 7,660 7,472 7,261 Total Net Assets 14,224 14,241 15,113 14,621 15,051 Net Equity 1,122 1,047 1,100 1,141 1,211 Common Equity Tier 1 n.a. n.a. n.a. n.a. 13.1% Core Tier 1 Capital Ratio (Basel II) (b) 12.7% 12.5% 11.6% 11.9% n.a. Solvent Ratio (Basel II) (b) 13.4% 12.7% 10.9% 10.8% 13.1% Net Loans to Deposits Ratio 80.9% 80.6% 75.7% 73.8% 68.9% Financial Margin 335 381 367 307 307 Commissions (net) 93 97 102 101 101 Insurance Technical Margin 5 10-4 -9-21 Gross Income (Operating Profit) 478 505 493 486 577 Net Profit 36 55 45-3 27 Efficiency Ratio (%) 68.3% 65.4% 67.0% 68.2% 57.5% Return on Equity (%) 3.2% 5.3% 4.1% -0.3% 2.2% Return on Net Assets (%) 0.2% 0.4% 0.3% 0.0% 0.2% Local Banks (#) 85 84 84 83 82 Branches (#) 689 686 686 683 683 (a) Includes mathematical provisions and financial liabilities under insurance contracts, within SICAM perimeter, considered for accounting purposes. (b) Note that ratios were calculated according to the applicable accounting principles (PCSB for 2002 to 2006; NCA for 2007; NIC and Basel II from 2008 onwards). 10
On December 2014, Crédito Agrícola s market share accounts for 6.47% of deposits and 3.88% of granted loans Crédito Agrícola s Market Shares Geographic Market Share - Deposits Geographic Market Share - Granted loans CA Group Market Share: 6.47% CA Group Market Share: 3.88% Source: Portuguese Central Bank (Banco de Portugal); December 2014 11
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 12
In 2014, Crédito Agrícola ranked 3th in terms of number of branches in Portugal, had the lowest liquidity ratio and the highest CET1 ratio Benchmark among the 8 major Financial Groups in Portugal 2014 Branches in Portugal (#) Common Equity Tier 1 (BIS III) - phase in 2 nd 3 th 1 st 695 683 720 637 611 436 223 631 12.0% 10.2% 13.1% 15.1% 10.5% 8.4% 10.8% 9.6% Minimum: 7% A B C D* E F G A B C D* E F G Loans to Deposits Ratio (%) Return on Equity (%) 109% 106% 117% 108% 106% 95% 126% 69% Indicative Liquidity Ratio Cap: 120% -6.3% -7.2% 2.2% 8.4% 1.4% -3.6% -8.4% A B C D* E F G A -36.8% B C D* E F G Source: Bank s results by December 2014 * Reference to June 2014. 13
Crédito Agrícola shows a lower-than-average cost-to-income ratio, being the sole bank to maintain its retail network (# of branches) Cost-to-Income Ratio (2014) Retail Banks in Portugal (# branches) Bank Dec. 13 Dec. 14 Variation A 774 695-79 B 683 637-46 47.3% 70.9% 51.6% 44.6% 66.8% 88.3% 75.5% 46.7% Average Cost-to-Income Ratio: 61.6% SICAM 683 683 0 C 625 611-14 D 456 436* -20 E 295 223-72 F 737 720-17 G 643 631-12 TOTAL 4,896 4,636-260 A B C D* E F G In 2014, the 8 major Banks in Portugal closed 260 branches. * Reference to June 2014. 14
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 15
As a universal bank, Crédito Agrícola offers a wide range of financial products and services to individuals and corporations Savings and Checking Accounts Corporate accounts (Euro or foreign currency) Direct debits Standing orders Payment management Support service for payments and receipts Transfers Payments of wages and suppliers Salary management Direct Debit Systems Deposits Investment Accounts Electronic Payments Systems Cash deposits Fixed and variable rate Savings Structured deposits Custodian operations and Market orders Structured products Mutual investment funds Portfolio management Debit & credit cards Corporate credit cards Co-branded and private labels POS & ATM Loans / Credits (individuals and corportate) Leasing & Invoicing discounting Mortgage loans Consumption credit Cash advances / Overdrafts Credit for investment Commercial paper issuing Current-account credit facility Vehicle leasing Equipment leasing Real Estate leasing Invoice discounting 16
NON - EXHAUSTIVE International Business Trade Finance Correspondent Banking International payments Emigrant remittances Tax-efficient investments Asset Management Structured products Securities investment Funds Real Estate investment Funds Integrated asset management Life & Non-life Insurances Life and Health insurance Retirement / education insurance and savings & pension funds Property and casualty insurance Professional and personal responsibility Management & Financial Advisory Business & corporate strategy Mergers & acquisitions Corporate finance Organization & governance Internationalization Specialized Financial Services Cash management Money and capital markets Financial instruments Foreign Exchange Securities brokerage and custody Commodities risk management Venture Capital & Vehicles (mandates) Operational management: Mandates: - FCR Central FRIE - FCR Agrocapital 1 Co-management: - FEII Floresta Atlântica Other financial instruments 17
Crédito Agrícola Group s Corporate Mission, Core Values and Development Strategy Corporate Mission To be the driver for the sustainable development of local communities, through long-term relationships with customers based on proximity and wich contribute to fulfil their financial and protection needs and expectations ( one stop shopping ). To be recognized as a role model in the financial industry among members, customers, regulatory bodies, partners, employees and the other stakeholders. Development Strategy To satisfy customers financial and protection needs, as well as to fulfil their financial aspirations To promote the local communities development To leverage sustainable investment projects To improve relationship with customers through lean processes that support an excellent service Soundness Core Values Trust To focus on targeting business opportunities that are expected to return on-going profitability and enhance the co-operative values Proximity Co-operative values Simplicity To focus on targeting business opportunities that are expected to return on-going profitability and enhance the cooperative values 18
Crédito Agrícola Group s communication strategy is focused on transparency and simplicity to customers and members 19
Beyond its 683 branches, the Crédito Agrícola Group offers state-of-the-art electronic interfaces in the digital world 683 Branches > 1.400 ATM and B24 www.creditoagricola.pt CA On-line / CA Imóveis CA Mobile Call Center 808 20 60 60 Facebook / Instagram 20
The Crédito Agrícola Group is enhancing its international presence through investment and commercial agreements CA geographical footprint (2015) Domestic network Representative Offices Agents IFI / SFE Partnerships Bank (Planned) EUROPE Germany Portugal AFRICA Angola Belgium United Kingdom South Africa U.S.A. Luxembourg Mozambique AMERICA Canada France Switzerland Cape Verde Venezuela 21
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 22
Recognition of Crédito Agrícola Group s excellence by the banking and insurance industries Portuguese Industry Awards for Crédito Agrícola Group Awarded by EXAME: (Portuguese economic magazine) Most Profitable Bank in its Segment Best Major Life Insurance Company Best Non-Life Insurance Company in its Segment in Exame 2012 in Exame 2012, 2006 in Exame 2013, 2010 2009, 2008 23
Crédito Agrícola: a positive reputation in the global banking industry Based on 2013 Balance Sheet, Crédito Agrícola is ranked by The Banker as 493rd in the World by Tier One Capital, 544th by Assets, 394th in the World by Soundness of Capital/Assets ratio and, in relation to Portugal only, the 2nd by Soundness of Capital/Assets ratio, 4th by ROA, 4th by Profits on Capital, 7th by Tier One Capital size and 8th by Assets. Source: The Banker, July 2014 Top 1000 World Banks 2014 special issue ranks Based on the 2013 Balance Sheet and strictly by Assets, Crédito Agrícola 726th in the World and 6th in Portugal. Source: Accuity Bankers Almanac On-Line 24
Crédito Agrícola: natural partner for the development of local communities In over 100 years of activity, Crédito Agricola has contributed to economically, socially and culturally develop the regions where Local Banks are integrated (co-operative principles and values being an intrinsic feature). 25
Index 1 History and Ownership Structure 2 3 4 5 6 Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 26
Contacts: Caixa Central Caixa Central de Crédito Agrícola Mútuo, C.R.L. Rua Castilho, 233/233A, 1099-004 Lisbon, Portugal www.creditoagricola.pt International Business Tel.: (00) 800 11 17 11 17 Compliance Tel.: (+351) 21 380 56 33 Fax: (+351) 21 380 56 32 Financial Tel.: (+351) 21 380 55 35 Fax: (+351) 21 387 45 86 Mr. João Barata Lima Department Head jblima@creditoagricola.pt Mrs. Helena Aparício Department Head & Compliance Officer haparicio@creditoagricola.pt Mr. Manuel Moreira Lima Department Head mlima@creditoagricola.pt Mr. Duarte Vidal Correspondent Banking & Trade Finance dvidal@creditoagricola.pt 27
Crédito Agrícola Group Your banking choice in Portugal