Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Investor Day (December 2020)
37 slides from Societe Generale S.a. Class A's investor day presentation, Dec 7, 2020
Slide 1: Entering a New Phase in French Retail Banking
ENTERING A NEW PHASE IN FRENCH RETAIL BANKING
Slide 2: Retail Banking: At the Heart of Our Business Model
RETAIL BANKING: AT THE HEART OF OUR BUSINESS MODEL Philippe AYMERICH DEPUTY CEO
Slide 3: A Strong Retail Banking Franchise
A STRONG RETAIL BANKING FRANCHISE LEADING POSITIONS IN RETAIL BANKING A STRATEGIC ASSET FOR THE GROUP France and #1 online #4 inbank RUSSIA in France (Boursorama) FRANCE EUROPE #3 inin Romania Czech Republic (KB) & (BRD) EUR 13.3 bn 54% of Group Revenues #1 International bank in Russia (Rosbank) (1)
Slide 4: A Proven Capacity to Handle Retail Banking Evolutions
A PROVEN CAPACITY TO HANDLE RETAIL BANKING EVOLUTIONS CHANGING CLIENT EXPECTATIONS OUR VISION OUR LEVERS ACCELERATION OF DIFFERENTIATED RELATIONSHIP EXPERTISE DIGITAL TRENDS MODELS & THE BENCHMARK IN CLIENT EXPERIENCE DIGITAL TOOLS UNCERTAIN PIONEERING NEW BUSINESS MACRO-ECONOMIC MODELS DATA ENVIRON
Slide 5: France: A Key Market with Strong Fundamentals
FRANCE: A KEY MARKET WITH STRONG FUNDAMENTALS ATTRACTIVE MARKET STRUCTURAL FAVOURABLE GROWING AND SOUND TRENDS RETAIL BANKING MARKET +18% # NEW COMPANIES IN Growing outstandings (annual evolution 15-20)(2) EUR 33.3K(1) Corporate loans Household loans GDP/capita above European average in 2019 2019 VS
Slide 6: Developing the Winning Universal Retail Model
DEVELOPING THE WINNING UNIVERSAL RETAIL MODEL NEXT PHASE: COMBINATION OF OUR IMPORTANT TRANSFORMATION COMPLETED NETWORKS UNIVERSAL BANK REGIONAL BANKS ✓ Reinforced expertise ✓ Differentiated relationship model depending on clients FURTHER INCREASE ✓ 20% of branches closed since 2015 and 30% of back
Slide 7: Generating High Level of Profitability with a Reinforced Position in Online Banking
GENERATING HIGH LEVEL OF PROFITABILITY WITH A REINFORCED #1 POSITION IN ONLINE BANKING STEPPING UP AS ONE OF THE LEADING FRENCH A POWERFUL BUSINESS MODEL BANK #1 More than 2,5m clients ONLINE BANK IN FRANCE 4.5M CLIENTS BY (1) A SIMPLE BUT COMPREHENSIVE 2025 OFFER EUR 10bn (1) loans (x 2 vs. 2016),
Slide 8: Conclusion: Entering the New Strategic Step
CONCLUSION ENTERING THE NEW STRATEGIC STEP TO ACCELERATE IN FRENCH RETAIL BANKING FRENCH RETAIL BANKING | 7 DECEMBER 2020 8
Slide 9: Sébastien Proto, Deputy General Manager
Sébastien PROTO DEPUTY GENERAL MANAGER
Slide 10: Combination of Our Networks
COMBINATION OF OUR NETWORKS
Slide 11: Combining Our Networks – Key Points
COMBINING OUR NETWORKS – KEY POINTS THE RIGHT MODEL FOR OUR CLIENTS STRONG CAPACITY SIGNIFICANT COST TO EXECUTE MAXIMISE ESTABLISH A SYNERGIES CLIENT MORE EFFICIENT SATISFACTION MODEL DEVELOPING OUR ONE MOST VALUABLE IT SYSTEM ASSET: OUR STAFF FRENCH RETAIL BANKING | 7 DECEMBER 2020 11
Slide 12: The Right Model for Clients
THE RIGHT MODEL FOR CLIENTS PERSONALISED CLIENT DIGITAL WHEREVER EXPERTS FOCUSED ON THE BEST EXPERIENCE AND RELEVANT ADVISING CLIENTS INNOVATIVE OFFER EFFICIENT CLIENT JOURNEY LOCALLY CORPORATES PROFESSIONALS AFFLUENT MASS-MARKET LEVERAGING ON EXPERTISE ONE TRUSTED PARTNER, DEDICATED SET-UP AND GREA
Slide 13: Building on Complementary Networks
BUILDING ON COMPLEMENTARY NETWORKS IMPROVED OFFER IMPROVED DIGITAL OFFER FOR PROFESSIONALS AND USER EXPERIENCE STRONGER LOCAL USING GROUP EXPERTISE TO PRESENCE AND PROXIMITY IMPROVED SERVE CORPORATES WITH A COMPLETE RANGE OF WITH SHORTER DECISION MAKING PROCESSES VALUE SOLUTIONS PROPOSITION KEEPING
Slide 14: Significant Cost Synergies
SIGNIFICANT COST SYNERGIES OPTIMISED NETWORK ONE SET OF CENTRAL FUNCTIONS SINGLE IT SYSTEM Keeping the same strong local Single headquarters Reduced maintenance costs presence Merging central functions More focused and efficient IT Fewer branches*: from ~2,100 in 2020 Unified and more efficient deve
Slide 15: One IT System Strategy
ONE IT SYSTEM STRATEGY THE NEXT GENERATION OF Build on the Société Générale platform, digitally INFORMATION SYSTEM advanced, feature-rich SYNERGIES ~1.5 year payback on the investment IMPLEMENTATION Strong preparation to reach the best quality check level, handled by highly experienced team Keep dev
Slide 16: Developing Our Most Valuable Asset: Our Staff
DEVELOPING OUR MOST VALUABLE ASSET: OUR STAFF BUILDING ON A COMMON UPSKILLING STAFF ACCOMPANYING THE CULTURE TRANSFORMATION Client satisfaction Focus staff on expertise and advice Strong culture of responsible employer Autonomy & Empowerment Enhancing the skillset of the existing Accompanying staff,
Slide 17: Strong Capacity to Execute
STRONG CAPACITY TO EXECUTE Building on a very agile and strong IT system IT MIGRATION Experienced team which has already executed this kind of migration Keep enriching the system during the transition period Strong culture of responsible employer HUMAN Involving our employees in a federating project
Slide 18: Delivering Sustainable Profitability
DELIVERING SUSTAINABLE PROFITABILITY DATA FOR THE COMBINED ENTITY > EUR 350m decrease in cost base in 2024 (vs 2019) ~ EUR 450m decrease in cost base in 2025 (vs 2019) _UNDERLYING COST BASE EUR 5.4bn ~EUR 5bn 2025 Basel III RONE Target ~11.0 – 11.5% 2019 2024 2025 Project costs between EUR 700m and
Slide 19: The Winning Universal Retail Bank
THE WINNING UNIVERSAL RETAIL BANK
Slide 20: ~10m Clients with Different Needs
~10m CLIENTS WITH DIFFERENT NEEDS >65% OF REVENUES ON HIGH TOP POSITIONS IN MORE VALUE ADDED SEGMENTS DYNAMIC FRENCH REGIONS 2019 Revenues split MASS MARKET CORPORATES AVERAGE HOUSEHOLD INCOME Lower Income (50% ofmunicipalities) Middle Income (30% ofmunicipalities) Higher Income (20% ofmunicipalitie
Slide 21: The Winning Universal Retail Bank
THE WINNING UNIVERSAL RETAIL BANK SHIFT TO MORE DIGITAL WITH DEDICATED EXPERTS FOR ADVICE RESPONSIBILITY STRONG LOCAL INTEGRATED THROUGHOUT PRESENCE DIGITAL, DATA AND AI BEST IN CLASS COMPLIANCE & RISK TO ENHANCE CLIENT PROCESSES EXPERIENCE DELIVERING OPERATIONAL OFFERING THE BEST EFFICIENCY WITH AN
Slide 22: Digital, Data and AI to Enhance Client Experience
DIGITAL, DATA AND AI TO ENHANCE CLIENT EXPERIENCE ACCELERATE TO BETTER KNOW OUR CLIENTS TO HAVE BEST INTERACTIONS INTEGRATE HIGHEST RISK AND PERSONNALISE EXPERIENCE EFFICIENCY STANDARDS DATA ANALYTICS MANAGE CLIENT INTERACTIONS, USING THE RIGHT CHANNEL USE OF AI TO ACCELERATE DECISION MAKING Better
Slide 23: Leveraging on an Innovative Ecosystem
LEVERAGING ON AN INNOVATIVE ECOSYSTEM LEVERAGING ON GROUP EXPERTISE ENHANCED VALUE PROPOSITION THANKS TO PARTNERSHIPS FRENCH RETAIL BANKING | 7 DECEMBER 2020 23
Slide 24: First French Large Bank to Offer Open Architecture for Savings
THE FIRST FRENCH LARGE BANK TO OFFER OPEN ARCHITECTURE FOR SAVINGS FROM 2021 The first French large bank to offer open architecture for savings for all clients Innovative offer with 7 partners enabling clients to access the best expertise in France and internationally Systematic integration of ESG F
Slide 25: Strong Regional Presence with Empowered Experts
STRONG REGIONAL PRESENCE WITH EMPOWERED EXPERTS STRONG LOCAL PRESENCE FOCUS ON EXPERTISE OPTIMISED NETWORK REGIONS AT THE CENTRE OF THE FEWER BRANCHES BUT SAME LOCAL PRESENCE MODEL Bringing reactivity, proximity, understanding of local situations From ~2,100 branches* in 2020 to ~1,500 in 2025 BRANC
Slide 26: Conclusion: A Strategic Step
CONCLUSION: A STRATEGIC STEP CLIENT CENTRICITY ESG EFFICIENCY Increased client satisfaction Supporting our clients and A more efficient model, with accompanying them with transition significant recurrent synergies Enhanced client journey thanks to with local ESG experts personalisation and improved
Slide 27: Boursorama
BOURSORAMA Benoît GRISONI BOURSORAMA CEO Aurore GASPAR BOURSORAMA DEPUTY CEO
Slide 28: The Undisputed Online Leader in France
THE UNDISPUTED ONLINE LEADER IN FRANCE LEADING MARKET POSITION(1) +550K new clients ACCELERATED GROWTH 15-20 in 2020 600 New customers # MILLION CLIENTS 500 Neobanks X3.5 2.5 400 Online Banks 2.1 300 1.7 Target 200 2020 1.3 100 Customer base 1 > 2M 0.75 0 2015 2016 2017 2018 2019 Oct. 2020 0 500 1 0
Slide 29: A Unique, Alternative and Hard to Replicate Banking Model
A UNIQUE, ALTERNATIVE AND HARD TO REPLICATE BANKING MODEL RELATIONSHIP MODEL Based on the clients' autonomy to let them decide by themselves EFFICIENT OPERATIONAL MODEL BEST IN CLASS OFFER Based on fully digital and automatised processes Based on a comprehensive offer in open architecture BEST COST
Slide 30: A Highly Scalable Infrastructure at the Forefront of Digital
A HIGHLY SCALABLE INFRASTRUCTURE AT THE FOREFRONT OF DIGITAL A FULLY-DIGITAL BANKING MODEL AND …DRIVING UNPARALLELED EFFICIENT INFRASTRUCTURE… SCALABILITY Digital native 30 products 100% mobile 950 functionalities No physical network Banking model 100 smart notifications Continuously lower cost-to-s
Slide 31: Demonstrated Ability to Equip Customers with a Comprehensive Offer
DEMONSTRATED ABILITY TO EQUIP CUSTOMERS THANKS TO A COMPREHENSIVE OFFER A FULLY FLEDGED …BACKED BY INNOVATIVE PRODUCT OFFERING… AND CUSTOMER CENTRIC TOOLS Easy move Wicount 360 Secured Vault Personalised Insights DAY TO DAY LOANS & SAVINGS & BROKERAGE INSURANCE AND BANKING AND MORTGAGES INVESTMENTS
Slide 32: A Fully Flexible Model That Proved Its Resilience in 2020
A FULLY FLEXIBLE MODEL THAT PROVED IN 2020 ITS RESILIENCE AND CAPACITY TO GENERATE PROFITABILITY OUTSTANDING …THAT CONFIRMS THE INTRINSIC 2020 YEAR… ECONOMIC VALUE OF THE MODEL (%) sept 20 Vs sept 19 Theoretical view: no client acquisition (EUR M – 9M 2020) Number of customers +22% AuA +20% Loans +2
Slide 33: 2020 Has Accelerated Several Underlying Trends That Benefit Boursorama
2020 HAS ACCELERATED SEVERAL UNDERLYING TRENDS THAT BENEFIT BOURSORAMA MAIN MACRO SOCIETAL TRENDS …ARE IN LINE WITH BOURSORAMA’S ACCELERATED BY COVID CRISIS… DNA AND STRATEGY REINFORCED SOCIETAL CSR INVESTMENT DIGITAL FOCUS ON DIGITAL AND ENVIRONMENTAL PRODUCTS AND GLOBAL FIRST / ONLY MODEL RESPONSI
Slide 34: The Winning Model with 4.5M Individual Clients and RONE >25% in 2025
THE WINNING MODEL WITH 4.5 M INDIVIDUAL CLIENTS AND RONE > 25% IN 2025 KEEP INVESTING IN CLIENT ACQUISITION WHILE …AND TURNING HIGHLY PROFITABLE IN 2024 STILL IMPROVING OPERATING LEVERAGE… Net result (in EURm) Target RONE (IRBA, Basel 4) 850 staff 920 staff 950 staff > 25% ~EUR 200m 4,5 m4,5 clients
Slide 35: Conclusion
CONCLUSION Frédéric OUDÉA CHIEF EXECUTIVE OFFICER
Slide 36: A Unique Set-up Creating Value for Clients, Staff and Shareholders
BUILDING A UNIQUE DUAL MODEL IN FRENCH RETAIL BANKING VISION 2025 FURTHER DIFFERENTIATE OUR FRENCH BRING TO FULL MATURITY THE NETWORK: A BEST IN CLASS OFFER FOR UNDISPUTED NUMBER ONE ONLINE SAVINGS, A LEADER FOR CORPORATE & BANK IN FRANCE AND ESTABLISH IT AS PROFESSIONALS ONE OF THE LEADING BANKS FO
Slide 37: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods