A new strategic plan based on our strengths. Financial and prudential planning

Transcription

1

2 DISCLAIMER This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of European Regulation 809/2004 of 29 April 2004 (chapter 1, article 2, 10). This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions 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. Readers must take all these risk factors and uncertainties into consideration before making their own judgement. The figures presented are not audited. The figures presented for the twelve-month period ending 31 December 2015, approved by Crédit Agricole S.A. s Board of Directors on 16 February 2016, as well as financial targets, have been prepared in accordance with IFRS as adopted in the European Union and applicable at end-2015, and with prudential regulations currently in force. In the whole document, 2013 data have been restated for equity-accounted entities consolidated under proportionate method in 2013 and 2014 data (excluding solvency elements) have been restated for methodological changes in tax accounting following the application of IFRIC 21. Note: The Crédit Agricole Group scope of consolidation comprises: the Regional Banks, the Local Banks and Crédit Agricole S.A. and their subsidiaries. This is the scope of consolidation that has been privileged by the competent authorities to assess the Group s situation, notably in the 2015 Balance sheet assessment exercise Crédit Agricole S.A. is the listed entity. It notably owns the subsidiaries of its business lines (French retail banking, International retail banking, Asset gathering, Specialised financial services, and Corporate and investment banking). Crédit Agricole S.A. also owns circa 25% of the Regional Banks up to the completion of the intragroup reclassification of CCI/CCAs held by Crédit Agricole S.A. in the Regional Banks, expected in the third quarter of

3 General Policy of the Group 1 A new strategic plan based on our strengths CONTENTS 2 3 A strategic ambition embedded in four priorities 1. Simplify the Group's capital structure 2. Roll out an ambitious Customer Project, enhanced by the digital revolution 3. Strengthen the Group's growth momentum in its core business lines 4. Transform the Group to sustainably improve our operational efficiency Financial and prudential planning 4 Business line strategy 1. Retail banking 2. Asset gathering 3. Large customers 4. Specialised financial services 3

4 CHAPTER 1 A NEW STRATEGIC PLAN BASED ON OUR STRENGTHS

5 CHAPTER 1 A NEW STRATEGIC PLAN BASED ON OUR STRENGTHS The Group's DNA Confirmed leadership year after year in our business lines Ability to deliver on our commitments MTP achievements Prudent economic and regulatory assumptions

6 THE GROUP'S DNA (1/3) A CUSTOMER-FOCUSED UNIVERSAL BANKING MODEL Recognised ability to distribute products created by our specialised business lines through our retail banking networks to meet our customer needs 7.8bn of revenue synergies in 2015 for Crédit Agricole Group An average of 9 products per demand deposit account 1 for a Regional Bank customer at end 2015 Asset gathering Retail banking Specialised financial services Large customers 1. Source: Regional Bank customer database 6

7 THE GROUP'S DNA (2/3) STRONG COOPERATIVE AND MUTUAL ROOTS Trend in number of mutual-shareholder customers (millions) #1 bank in France in terms of the number of mutual-shareholder customers +1.4m ~ 9m mutual-shareholder customers at end 2015 A decentralised structure 38 Regional Banks 1, fully-fledged banks A united Group Internal solidarity mechanisms guaranteeing the robustness of all the Group's entities A model based on developing commercial synergies Pooling resources to improve operational efficiency Strong specialised business lines 1. Excluding Caisse régionale de la Corse 7

8 THE GROUP'S DNA (3/3) A GROUP CAPABLE OF ADAPTING TO DELIVER SUSTAINABLE PERFORMANCE Common chairmanship between Crédit Agricole S.A., SAS Rue La Boétie and FNCA since November 2015 Highly committed Directors both at Crédit Agricole S.A. and the Regional Banks Director training programme at CASA and the Regional Banks Corporate External assessment of CASA's Board governance system that ~ 9m mutual-shareholder customers and 31,150 meets our Directors at the heart of the Regional Banks' and demanding Group s governance requirements Crédit Agricole S.A.'s Compliance Division reports directly to Executive Management since September 2015 Ethics and compliance embedded in governance Group Chief Compliance Officer now a member of the restricted Executive Committee, reflecting our desire to instil a genuine culture of ethics CSR is now covered by Crédit Agricole S.A.'s Strategy strategic and CSR Committee Cooperative Regional Pacts in the Regional Banks to support the local economies and deliver on our social responsibility Member of major sustainable development benchmark indices Multiple initiatives in Climate Financing CSR commitments embedded in day-to-day operations Amundi: EDF partnership, low carbon index trackers, SRI CAA: investments in renewables and energy-efficient real-estate CACIB: world leader in Green and Sustainable Bonds CAL&F: a major player in renewables financing in France Un Substantial investment in human resources > 5,000 recruitments a year on permanent contracts in 2014 and 2015 in France to support the transformation of our business lines Significant investment in training to meet transformation needs and improve skills 8

9 CONFIRMED LEADERSHIP YEAR AFTER YEAR (1/6) IN RETAIL BANKING (1/2) Market leader in France in all segments, with differentiated and complementary positions In Italy, a robust, profitable bank forming the backbone of our growth in this country 3 complementary brands in France with a total of 27 million individual customers # 7 retail bank in Italy with more than 1.7 million customers 21m individual customers ~7,000 branches 6m individual customers Present mainly in urban areas 140,000 individual customers Online universal bank One of the best rated banks in Italy by Moody s (A3) Presence in the prosperous regions of Northern Italy Branch market share # 1 aggregate penetration rate 1 (RBs + LCL) Individuals 1 : 36% / Small businesses 2 : 32% / Farmers 3 : > 85% / Corporates 4 : 45% The leading financial partner of the French economy with a loan book of > 500bn No presence <3% 3-5% 5-10% 10-15% 15-25% >25% 1. Sofia Pépites ; business purposes only 3. Adéquation 2014 Regional Banks scope only 4. TNS Sofres

10 CONFIRMED LEADERSHIP YEAR AFTER YEAR (2/6) IN RETAIL BANKING (2/2) Steady growth in business by more than 2% a year since 2013 Loans outstanding (in bn) On-balance sheet deposits (in bn) 520 CAGR + 2% Cariparma 469 CAGR + 3% LCL Régional Banks

11 CONFIRMED LEADERSHIP YEAR AFTER YEAR (3/6) IN ASSET GATHERING (1/2) Strong leadership in our activities, coupled with sustained growth momentum A comprehensive player offering our customers end-to-end real estate management solutions #1 asset manager in Europe 985bn in assets under management at end 2015 # 1 real estate investor in France ~ 30bn invested at end # 1bancassurer (France and Europe) # 2 insurer in France Leader in death & disability 30bn in premium income in Leader in real estate funds 17bn in assets under management at end 2015 > 150bn in AuM in private banking and wealth management at end 2015 # 5 in property management in France ~290,000 properties managed 500 branches 1. Under IFRS 2.Third-party investment 11

12 CONFIRMED LEADERSHIP YEAR AFTER YEAR (4/6) IN ASSET GATHERING (2/2) Strong growth momentum in Asset gathering Renewed success of property & casualty insurance 1, Assets under management 1 ( bn) CAGR +10% 1,396 1, Net inflows ( bn) ~91 3.7% % Wealth management & Private banking Savings/Retirement and D&D 2 7.2% Inflows/AuM Y-1 Asset Management Number of property & casualty insurance policies 3 in France and Italy (millions) 8,8 9,2 CAGR +5% 9, , In asset management: including Smith Breeden from 30/09/2013 and Bawag PSK Invest from 31/03/ and 2014 pro forma data including assets advised and distributed. In Wealth management & Private Banking: including LCL Private Banking 2.Death & Disabilities 3. Car, home, legal protection, health, personal accident, liability, farming, property & casualty 12

13 CONFIRMED LEADERSHIP YEAR AFTER YEAR (5/6) IN FINANCING ACTIVITIES AND PAYMENTS (1/2) Expertise in financing activities supporting the Group's other activities LARGE CUSTOMERS # 1 worldwide in aircraft financing 1 # 2 in syndication business in France 2 # 5 bookrunner in loan syndication in Western Europe 2 # 3 worldwide in project finance arrangement 2 in EMEA and the Americas # 1 worldwide in Green and Sustainable bonds 3 # 6 worldwide in euro bond issues 2 After a refocusing period, a new streamlined CIB model Revenues from activities 4 ( bn) 3.8 1,8 CAGR + 5% ,9 2,1 2,1 2,1 2, A leader in asset servicing in Europe. End 2015: 2,327bn in assets under custody 1,477bn in assets under administration Capital markets and investment banking Financing activities 1. Air Finance Journal July Thomson Financial 3. CACIB, internal source and 2014 data restated for loan hedges, FVA/CVA/DVA impacts and disposal of brokers, and based on the analytical reallocation of discontinuing activities and transfer of SFS (Structured and Financial Solutions) to Investment banking 13

14 CONFIRMED LEADERSHIP YEAR AFTER YEAR (6/6) IN FINANCING ACTIVITIES AND PAYMENTS (2/2) Expertise in financing activities supporting the Group's other activities SPECIALISED FINANCIAL SERVICES Top 3 in consumer finance in Europe 71bn managed loan book at end 2015 # 1 ex aequo originator of equipment loan securitisation in Europe in 2015 (11 transactions totalling 7.2bn) Strong domestic positions in leasing and factoring 15bn outstanding in leasing 67bn factored receivables book in 2015 PAYMENTS Leader in payments in France More than 9 billion transactions in

15 ABILITY TO DELIVER ON OUR COMMITMENTS (1/5) GROWTH IN INTRAGROUP SYNERGIES AND A STRENGTHENED POSITION IN EUROPE Revenue synergy growth ahead of schedule Revenue synergies ( bn) + ~ 745m Of which revenue synergies in Italy ( m) target target Crédit Agricole S.A. share ( bn) Main achievements Sharp growth in personal and property insurance in the Regional Banks Robust growth in mutual fund inflows in Italy thanks to the cooperation between Cariparma and Amundi Strong increase in consumer finance production in the Regional Banks in collaboration with CACF restated 15

16 ABILITY TO DELIVER ON OUR COMMITMENTS (2/5) AN AMBITIOUS INVESTMENT PROGRAMME AND CONTINUED COST CUTTING FOR IMPROVED OPERATIONAL PERFORMANCE Continued efforts to cut costs at CASA with the completion of the MUST programme Major investments in business transformation in Reduction in costs ( m) Cumulative investments ( bn) Savings from 2011 to 2013 Savings from 2014 to ,9 3.7 Other business lines & CASA cross-entity ,4 1,5 75% LCL Regional Banks MUST savings since 2011 Cost savings in 2014 and 2015 excluding MUST investments targets Main achievements Crédit Agricole S.A.: transformation plan for IT production subsidiary (SILCA) and reduction in external spending Retail banking: RBs/LCL joint outsourcing of cheque processing Specialised financial services: operating expenses dropped by 6% between 2013 and 2015 CACIB: partial IT outsourcing Main achievements (excluding regulatory and technical obsolescence) > 50% of investments allocated to the transformation of our retail banking networks and upgrading the Regional Banks and LCL branch networks ~30% devoted to business line information systems: business development, business process digitalisation Investments in operational efficiency 16

17 ABILITY TO DELIVER ON OUR COMMITMENTS (3/5) DIFFERENTIATED TRANSFORMATION OF OUR NETWORKS TO MEET NEW CUSTOMER EXPECTATIONS 2 nd brand 1 st banking group for digital services in France 1 in 2015 Laureate of the international Finovate award million users of the «Ma Banque» App Orange Crédit Agricole Microsoft SFR Amazon SNCF Samsung Société Générale FNAC BNP Paribas La Poste La Banque Postale Free Carrefour Telecom operators and GAFA Banking groups Nomination of "LCL mes comptes" among the 4 best service Apps in The Crédit Agricole continues to roll out the red carpet for start-ups [ ] who can benefit from the support of one of the 10 partners of the Village (Orange, Engie, Microsoft, IBM, etc.) Le Figaro 1. Digital services : web, social networks, mobile la Factory / Top 100 of the «Rayonnement Numérique des Marques» 2. «Trophée des Apps»

18 ABILITY TO DELIVER ON OUR COMMITMENTS (4/5) A GOOD LEVEL OF NET INCOME GROUP SHARE IN ALL BUSINESS LINES Net income Group share up strongly thanks to a recovery in the activities that made substantial deleveraging efforts from 2011 to 2013 Crédit Agricole S.A.'s underlying net income Group share 1 ( bn) + 1.2bn Driven by a significant increase in the contribution of the 3 activities that recovered since m International retail banking m Specialised financial services NIGS 2013 NIGS m Corporate and investment banking 1. Restated for the impact of accounting standards and specific items 18

19 ABILITY TO DELIVER ON OUR COMMITMENTS (5/5) PROVEN FINANCIAL ROBUSTNESS AND PROFITABILITY IN LINE WITH 2016 TARGETS Crédit Agricole Group Year end target 1 Crédit Agricole S.A. Year end target 1 Fully-loaded CET1 ratio 13.7% 14% 10.7% > 10.5% reported 6.0bn 3.5bn NIGS > 6.5bn > 4bn underlying 6.2bn 3.6bn reported 10.0% RoTE 12% underlying 10.4% 1. According to MTP 19

20 CONSERVATIVE ECONOMIC AND REGULATORY ASSUMPTIONS (1/2) ECONOMIC AND FINANCIAL ENVIRONMENT Deliberately conservative economic growth and interest rate assumptions Moderate recovery in growth Durably low interest rates GDP growth (year-on-year, %) 5% 3-month Euribor and 10-year OAT rates 2% 0% Eurozone France Italy 3% -2% 1% 10-year OAT -4% 3-month Euribor -6% % Source: Eurostat, INSEE, ISTAT, Crédit Agricole S.A. 20

21 PRUDENT ECONOMIC AND REGULATORY ASSUMPTIONS (2/2) REGULATORY ENVIRONMENT Regulatory changes result in a harsher financial and economic equation for banks New requirements for regulatory ratio levels and calculation methods, which have an impact on Level of capital: calibration of leverage ratio, SREP, etc. Funding structure: NSFR, TLAC, MREL, etc. RWA calculation methods: internal model review, fundamental review of the trading book, interest rate and sovereign risk management, etc. and accounting standards (IFRS9) Tougher consumer protection requirements New competition in some of our businesses: revision of the Payment Services Directive (PSD2) Greater transparency obligations: revision of the Markets in Financial Instruments Directive (MiFID 2) REGULATORY ASSUMPTIONS Our targets include the following assumptions: Fundamental review of the trading book Low default portfolio New regulatory treatment of securitisation Revision of internal measurement models (credit and market risk) IFRS 9 The following assumptions have not been included: Capital floors for banks using internal models 21

22 CHAPTER 2 A STRATEGIC AMBITION EMBEDDED IN FOUR PRIORITIES

23 CHAPTER 2 1 Simplify the Group's capital structure A STRATEGIC AMBITION EMBEDDED IN FOUR PRIORITIES Roll out an ambitious Strengthen the Group's Customer Project, 2 growth momentum in its 3 enhanced by the digital core business lines transformation 4 Transform the Group to sustainably improve our industrial efficiency

24 SIMPLIFY THE GROUP'S CAPITAL STRUCTURE 1 Simplify the Group's capital structure Rationale behind the operation for Crédit Agricole S.A. Impacts on Crédit Agricole Group's and Crédit Agricole S.A.'s financial position 1.3 Consequences for the business mix 24

25 1.1 PLAN TO SIMPLIFY THE GROUP'S STRUCTURE RATIONALE OF THE TRANSACTION FOR CRÉDIT AGRICOLE S.A. Simplification of Crédit Agricole Group s structure Improvement of quality of capital CET1 target of 11% immediately reached Return to cash dividend as soon as 2016 results Greater clarity for the market and the Supervisor Unwinding of Switch 1 mechanism: impact of 170bps at the fully-loaded CET1 level Fully-loaded CET1 targeted ratio of 11% achieved at 31/12/2015 (pro forma) CET1 target of 11% confirmed over the duration of the Medium Term Plan Corresponding to a 150bps buffer above the 9.5% Pillar 2 requirement As part of a Group with a fully-loaded CET1 ratio already at 13.7% Distribution policy confirmed: pay-out ratio of 50% Payment of the dividend in cash secured, as of 2016 results Elimination of the dilutive effect of paying scrip dividend Deleveraging of Corporate centre Impact on liquidity of 13.0bn, after repayment of the Switch 1 deposit 1 Deleveraging of Corporate centre 11bn loan granted to the Regional Banks to finance the transaction Active financial management Elimination of the financial expenses relating to Switch 1 Improvement of cash flow by 0.3bn per year 1. Before price adjustment 25

26 1.2 PLAN TO SIMPLIFY THE GROUP'S STRUCTURE IMPACTS ON THE FINANCIAL SITUATION OF THE GROUP AND CASA Transaction overall neutral at Crédit Agricole Group level On net income On regulatory ratios On liquidity position (Intragroup funding of the transaction) No change in the scope of tax consolidation Immediate positive impact on the capital position of Crédit Agricole S.A. Positive impact of 41bps Pro forma fully-loaded 2015 CET1 ratio 11%: target achieved one year ahead of schedule, with better quality of capital Limited effect on net EPS of Crédit Agricole S.A Impact on net income, excluding one-time items, of around - 470m Elimination of the dilutive effect of scrip dividend, around 5% annually 1 Limited impact for the Regional Banks Regulatory situation sufficiently strong to largely absorb the impact of the transaction (average pro forma 2015 CET1 ratio of 17.3%) 1. Relative to a situation in which an option to pay a scrip dividend would have been proposed with respect to the 2016 annual result. Earnings-enhancement calculation based on the assumption that the take-up rate for the scrip dividend would be the same as that observed in

27 PLAN TO SIMPLIFY THE GROUP'S STRUCTURE 1.2 TIMELINE OF THE IMPACTS ON CRÉDIT AGRICOLE S.A Q1 Q2 Q3 Q and following Balance sheet optimisation ( 750m) in revenues ( 490m) in NIGS Dividend ~ + 287m in NIGS 1 Capital gain + 725m + 833m in Net income from discontinued or heldfor-sale operations 2 ( 108m) related to the dividend paid in Q1 Deconsolidation of the contribution from CCI/CCAs ~ ( 270m) per quarter on average (based on 2015 figures) Balance sheet optimisation m / 4 per quarter in revenues, i.e. + 27m in NIGS End of interest paid on Switch m / 4 per quarter in revenues, i.e. + 75m in NIGS One-off impacts Recurring impacts Interest on the loan granted to the Regional Banks and investment of the remainder of the net proceed m / 4 per quarter in revenues, i.e. + 43m in NIGS NB : NIGS calculated using the 2016 tax rate of 34.43% 1. Of which + 179m increase in share of net income 2. Estimation, actual figures will depend on terms of optimisation transactions 3. Assuming no price adjustment 27

28 1.3 PLAN TO SIMPLIFY THE GROUP'S STRUCTURE CONSEQUENCES ON CRÉDIT AGRICOLE S.A. BUSINESS MIX A balanced business mix which remained very largely dominated by retail banking activities until now and this will not significantly change between 2015 (pro forma) and 2019 Revenues: CASA business mix (excluding Corporate Centre) in % (excluding Regional Banks 1 ) Net income Group share: CASA business mix (excluding Corporate Centre) in % (including Regional Banks in 2015 underlying) 14% 14% 14% 27% 27% 27% 9% 13% 13% 22% 29% 30% 26% 25% 26% 33% 38% 35% 33% 34% 33% 36% 20% 22% 2015 underlying 2015 underlying pro forma underlying 2015 underlying pro forma 2019 Retail banking Asset gathering Specialised financial services Large customers (CACIB and CACEIS) 1. The share of Crédit Agricole S.A. in the Regional Banks was equity-accounted until

29 ROLL OUT AN AMBITIOUS CUSTOMER PROJECT, ENHANCED BY THE DIGITAL REVOLUTION 2 Roll out an ambitious Customer Project, enhanced by the digital revolution A Customer-focused Universal banking model A Full Multi-Channel distribution model 2.3 A strategic investment in customer relationships 29

30 2.1 A CUSTOMER-FOCUSED UNIVERSAL BANKING MODEL A model based on the expertise of all our business lines, on the excellence and the know-how required to meet the financial and wealth management needs of our customers Diverse customer profiles, with very different needs and goals Corporates Individuals Institutionals Small businesses... Farmers A comprehensive and durable relationship A universal product range covering all needs Payment services Account keeping Insurance Corporate Real Estate Financing... finance Savings 30

31 2.2 A FULL MULTI-CHANNEL DISTRIBUTION MODEL A model that enables our customers to choose how and when they interact with their bank and switch easily between the various channels Illustration of the customer journey for a home loan Human interactions +++ Information search Agreement in principle and pricing Subscription Revision of repayment schedule Early repayment BRANCH % of customers 1 ~10% 100% human + 100% digital Face to face Phone /chat Social media Website/web callback App Jean Aged 45 Laure Aged 41 Raphaël Aged 28 Prefers to have a face-to-face relationship with his adviser MULTI-CHANNEL ~70% Attached to the simplicity of digital for some transactions and the extra value provided by an adviser DIGITAL Attached to the freedom and simplicity of digital banking ~20% Added value largely based on the acceleration of the Group's digital transformation 1. source: McKinsey Retail distribution 2015: full digitalisation with a human touch ; estimation of banking customer behaviours on complex operations 31

32 2.2 THE GROUP IS TAKING ACTIONS TO ACCELERATE THE DIGITAL TRANSFORMATION AND FOSTER INNOVATION Aim of our digital transformation IMPROVE THE CUSTOMER EXPERIENCE by streamlining and digitalising all key customer journeys 300 customer journeys re-designed throughout the entire Group minutes maximum to open an account 32

33 2.2 THE GROUP IS TAKING ACTIONS TO ACCELERATE THE DIGITAL TRANSFORMATION AND FOSTER INNOVATION 3 levers to drive this transformation AGILITY INNOVATIVE ECOSYSTEM DIGITAL CULTURE Introduce new working methods to foster agility Setting up Digital Factories APIs Big data: creation of a Group DataLab Take advantage of our relationships with innovative companies Supporting and investing in start-ups Partnerships and investment in Fintechs and Insurtechs Develop a digital culture among the men and women of the Group Digital Academy Recruit digital talents (e.g. user experience designers) Information systems adapted for open innovation thanks to the development of APIs 200m for investment in start-ups and Fintechs 600 start-ups within 2 years in the Villages by CA 100% of staff have access to a MOOC Appointing a Group Chief Digital Officer, a symbol of the new impetus given to our digital transformation 33

34 2.2 PROACTIVE DIGITAL TRANSFORMATION Concrete examples of the digital transformation serving our customers 100% of branches digitalised by flagship branches Open Bank 1 Online platform distributing all Group products Full digital bank Full online offer available on all Full online "Mobile first" strategy Digital branches Innovative products and services Supporting our customers and partners in the digital transition bank + devices + Seamless interface between channels with symbiosis between human and digital 1. Open bank: customer area providing 100% connected and available free-access services 34

35 2.3 A STRATEGIC INVESTMENT IN CUSTOMER RELATIONSHIPS OUR PROMISE To act and behave as the true partner of our customers 1 DRIVERS 2 3 A partner that can continuously reinvent itself to simplify and ease its customers lives and projects A partner that helps every customer make the right decisions A partner that accompanies each of its individual customers over the long term in a global and personalised manner ROLLOUT Concrete evidence at a Group level, across all entities Concrete evidence specific to each entity 35

36 2.3 A CUSTOMER PROJECT REFLECTED IN CONCRETE ACTIONS TAKEN AT THE GROUP LEVEL AND BY EACH ENTITY Concrete evidence at a Group level, across all entities % of key customer journeys digitalised and dematerialised, interruptible and interoperable A new wealth advisory approach Renowned ales/advisory method of customer advisers All customer advisers renowned for their expertise Group Charter setting out the rules for the use of personal data to be implemented in 2016 New products and services to support our customers through "life's ups and downs" Concrete evidence specific to each entity "Bouton vert helpline Contact with an adviser on demand (channel chosen by the customer) Premundi: a joint commercial service providing a unified offer Life s hard blows" offer for loyal customers (unemployment, death, etc.) Online platform distributing all the products of the Group 360 Tool (e-wheel): check up of customer needs and comparison of casualty insurance products and services End-to-end and multi-channel support of the real-estate purchasing process 36

37 STRENGTHEN THE GROUP'S GROWTH MOMENTUM IN ITS CORE BUSINESS LINES Retail banking Strengthen the Group's growth momentum in its core business lines 3.2 Asset gathering 3.3 Large customers 3.4 Specialised financial services Strengthening intragroup revenue synergies 37

38 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Accelerate the pace of customer capture to support our leadership over the long-term Increase customers equipment in synergy with specialised businesses Complete the digital transformation while controlling the cost base 38

39 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Accelerate the pace of customer capture to support our leadership over the long-term Individuals: 3 main levers to gain new customers Digital products and services Young customers Home loans Small businesses and Farmers: expand our presence in these markets Full digital offer, free for young customers +20% vs 2015 in home loans1 and launch of an e-immobilier site 500,000 customers in 2020 (i.e. +360,000 customers in 5 years) +180,000 individual and small business customers in 2019 vs 2015 Corporates: strengthen our position in the mid-corp segment pts in small business penetration rate vs % of mid-corp customers 1. Excluding renegotiations 39

40 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Increase in the number of products per customer in synergy with specialised activities 2019 targets (vs 2015) Continue our multi-product strategy Strengthen our position in consumer finance Further increase our equipment rate of property & casualty, death & disability and creditor insurance products Reinforce business in specialised markets Accelerate inflows in the mass-affluent segment + 5bn consumer finance loan book > + 70bn off-balance sheet customer assets Increasing the number of products per retail customer is a key growth driver for specialised activities > + 400m revenues generated by specialised activities through the retail banking networks in

41 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Complete the digital transformation while controlling the cost base DIGITAL TRANSFORMATION AND BRANCH NETWORK UPGRADE An ambitious investment plan to support business development COST CONTROL A proactive plan to improve operating efficiency ~ 200m p.a. of investment for Crédit Agricole S.A. ~ 550m p.a. of investment for the Regional Banks ~ 325m of recurring cost savings for Crédit Agricole S.A. ~ 110m for the Regional Banks 41

42 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING 2019 FINANCIAL TARGETS Crédit Agricole S.A.'s Retail banking LCL Cariparma Revenues CAGR ~ +0.5% p.a. ~ +3% p.a. Cost / income ratio (2019) ~ 65% ~ 55% RoNE 1 (2019) > 16% > 16% 1. RoNE: calculated on the basis of a capital allocation of 9.5% of risk weighted assets 42

43 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING A driving role in Crédit Agricole S.A.'s revenue growth Investment in the growth of our activities Boosting in revenue synergies 43

44 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING A driving role in Crédit Agricole S.A. revenue growth 1/3 of Crédit Agricole S.A. business line revenues generated by the Asset gathering business line Crédit Agricole S.A. business-line revenues ( bn) % 33% ~1.8 45% ~20,3 ~45% of growth in Crédit Agricole S.A. business line revenues generated by the Asset gathering business line over % Synergies generated by the Asset gathering business line Revenues of Asset gathering Other business line revenues 69% 2 67% 2 65% Revenues generated by the Asset gathering business line include 1/ the business line's own revenues and 2/ revenue synergies generated by the Asset gathering business line for other business lines of Crédit Agricole S.A. (i.e. commissions given by the business line to others business lines of Crédit Agricole S.A.) 2. Business-line revenues 2013 and 2015 pro forma : analytical transfer of Switch 2 guarantee to Insurance activity 44

45 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING Investment in the growth of our business lines Growth in the capital allocated to the Asset gathering business line Capital allocated to business lines 1 ( bn) Pursuit of value-creating acquisitions Primarily in asset management And, to a lesser extent, in wealth management % 3% 71% % 27% 70% 2019 Wealth management Asset management Insurance Increase in costs to support growth, mainly in insurance ~ +2% p.a. business line costs 1. Allocated capital: for wealth management, 9,5% of RWAs; for asset management, 9.5 % of RWAs, plus needs for Seed Money as well as stakes and investments ; for insurance, 80% of Solvency 2 capital requirements, reduced by 9.5% of RWAs transferred by the Switch 2 guarantee to the Regional Banks 45

46 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING Boosting in revenue synergies Between the Asset gathering entities Be the partner of choice to companies for group employee savings, pension, death & disability and health plans through an integrated sales and marketing approach between Crédit Agricole Assurances and Amundi Between the Asset gathering entities and the rest of the Group Crédit Agricole Assurances to take over group creditor insurance contracts for the Regional Banks 1.5 pt market share gain in car and home insurance 1 by 2019 together with our retail banks x 2 market share in group retirement plans, from 8% to 16% by 2019 ~ +4% a year growth in creditor insurance premium income market shares in number of policies: 6.2% in car and 9% in home 46

47 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING 2019 FINANCIAL TARGETS Sustained business momentum while ensuring growth in the business line's already high profitability Business indicator Asset gathering (including CA Indosuez WM, excluding CA Immobilier) of which Insurance 1 285bn (AuM) of which Asset management 160bn (net inflows) Revenues CAGR > +3% p.a. > +4% p.a. ~ +3% p.a. Cost / income ratio (2019) <45% <30% <55% RoNE (2019) >25% 2 >22% 2 >30% 2 1. Pro forma : analytical transfer of Switch 2 guarantee to Crédit Agricole Assurances 2. RoNE calculated on the basis of a capital allocation tailored to the needs and risks of each business line 47

48 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS A CIB serving the Group whilst maintaining a low risk profile Large customers: a new coherent business line generating synergies Proactive RWAs and cost base optimisation to offset impacts of new regulatory requirements 48

49 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS A CIB serving the Group whilst maintaining a low risk profile A CIB serving the Group Support the development of the Regional Banks and Cariparma in the mid-corp segment Develop market activities with corporate and local authority customers of the Regional Banks and LCL Servicing on market transactions for other Group entities A Large customers business line with a specially prudent risk profile, helping reduce earnings volatility Capital markets and investment banking represented only 42% of the Large customers business line's 2015 revenues (-14 pts vs our peers) 11% 56% 42% 33% 43% Peer group average 1 15% Asset servicing Capital markets and investment banking Financing activities xxx Average VaR (m ) 1. BPCE Group + Société Générale + BNPP 2. Mutualised VaR 99%-1 day for Crédit Agricole S.A. < 5% of total RWAs linked to market risks for Crédit Agricole S.A. by

50 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS Large customers: a new coherent business line generating synergies PRODUCT SYNERGIES CLIENT SYNERGIES INDUSTRIAL SYNERGIES Strengthen our global offer for institutional customers Greater commercial cooperation between CACIB and CACEIS Industrialisation of common transactions Financing, Fixed Income, FX, bonds, execution, clearing, custody, depository bank, etc. Example: coordination of coverage Example: clearing of listed derivatives 50

51 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS Proactive optimisation of RWAs and cost base to offset impacts of new regulatory requirements Proactive optimisation of RWAs Selective review of CACIB client portfolio to free up 10bn of RWAs (out of a total of 12bn) Accelerate growth in flow products and rebalance customer mix towards institutionals Optimise models and financial management Operational efficiency plan Investments to converge CACIB and CASA information systems and reduce the run the bank IT costs Actions to simplify structures and pool resources in support functions Change in RWAs ( , bn) RWAs 12 1 New regulations -12 Portfolio review & other optimisation measures 7 Organic growth -5 FX effect RWAs ~ 230m of recurring cost savings by 2019 to be reinvested in developing industrial and flow businesses 1. Quantifiable at this stage (fundamental review of the trading book, low default portfolio, new prudential treatment of securitisation, revision of internal credit and market risk models) 51

52 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS 2019 FINANCIAL TARGETS Large customers: a coherent business line generating additional synergies Proactive optimisation of RWAs and cost base to offset impacts of new regulatory requirements Revenues CAGR 1 ~ +2% p.a. RoNE 2 (2019) >11% Cost / income ratio (2019) < 60% RWAs (2019) 134bn 1. CAGR 2019 vs 2015 underlying 2. RoNE calculated on the basis of a capital allocation of 9.5% of RWAs 52

53 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES A selective growth after several years under severe constraint An improvement in profitability thanks to cost cutting efforts and adaptation of the model to capital and liquidity constraints 53

54 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES A selective growth Further integrate specialised financial services with the Group's retail banks Support the Group s networks in gaining new customers and expanding its loan book Increase sales of insurance product at CACF Selectively relaunch profitable production in stand-alone business Direct channel Partnerships and car finance joint ventures + 1 pt market share in consumer finance by % of production made jointly with the Group's retail banks in bn in consumer finance loan book in France excluding Group networks over the plan period Digital and innovation 2 key drivers to support renewed growth 40% of consumer loan production from digital channels in partner in top 5 e-commerce/mcommerce in each country 54

55 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES An improvement in profitability Switch to an asset-light model Sharp improvement in RWAs/consolidated loan book ratio Continued self-funding efforts in Specialised financial services Operating optimisation, with sustained cost cutting efforts Convergence of CACF and CAL&F IT systems to Group factory Digitalisation of processes > 70% self-funding ratio in 2019 SFS business line -18 points RWAs / consolidated loan book ratio in 2019 (vs 2015) Stability of business line costs over

56 STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES 2019 FINANCIAL TARGETS A selective growth after several years under severe constraints An improvement in profitability thanks to cost cutting efforts and the adaptation of the model to capital and liquidity constraints Revenues CAGR > +2.5% p.a. RoNE 1 (2019) > 13% Cost / income ratio (2019) <46% (i.e. -5 pts over the period) 1. RoNE calculated on the basis of a capital allocation of 9.5% of RWAs 56

57 STRENGTHEN THE GROUP'S GROWTH MOMENTUM INTRAGROUP REVENUE SYNERGIES Revenue synergies target of 8.8bn for Crédit Agricole Group in 2019 i.e. more than 25% of business line revenue Main sources of additional revenue synergies CAA to insource the group creditor insurance contract Off-balance sheet assets inflow in high net worth segment Sales of individual property & casualty and death & disability insurance Consumer finance loans distributed by our retail banks with CACF CACIB CACEIS cross-selling to institutional clients Amundi - CAA revenue synergies in group pensions, health and death & disability CACIB Retail Banks cross-selling to mid-corps Revenue synergies ( bn) + 1bn Régional Banks Crédit Agricole S.A restated 57

58 STRENGTHEN THE GROUP'S GROWTH MOMENTUM ITALY: DEVELOP INTRAGROUP SYNERGIES IN THE GROUP'S SECOND DOMESTIC MARKET A comprehensive profitable range of business lines: robust fundamentals underpinning the future Impressive performances at end million customers 123bn 1 of deposits and assets under management 3.1bn 1 of revenues, ~18% of Crédit Agricole S.A.'s revenues > 570m of synergies in revenues (vs 2016 target of 500m) employees 57bn 1 of loans outstanding x 3 growth in NIGS Italy between 2013 and 2015 All the Group's business lines are in marching order to expand our business in Italy Change in our retail banking brands in Italy scheduled for 2016 to strengthen Group belonging and reflect our growth ambitions in Italy 1. Aggregate data for the Group's business in Italy, FCA Bank s Italian business 50% integrated 58

59 STRENGTHEN THE GROUP'S GROWTH MOMENTUM ITALY: DEVELOP INTRAGROUP SYNERGIES IN THE GROUP'S SECOND DOMESTIC MARKET Strong growth ambitions in Italy Develop all the specialised businesses in synergy with the Cariparma Group Growth in off-balance sheet customer assets with Amundi and CAA Strong increase in consumer finance production with Agos Step up cooperation with CACIB in the mid-corp segment Expand distribution capacities in Italy Set up an online platform providing all Group products Create a network of specialised financial advisers in savings management Continue to pool resources to reduce costs Set up an Economic Interest Group "Crédit Agricole Group Solutions" for Cariparma and Agos Reduce cross-border funding and cost of funding through a local cash management system Revenue synergy targets by 2019 ( m) % target 59

60 TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY 4 Transform the Group to sustainably improve our industrial efficiency 60

61 TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY A 900m operational efficiency programme for Crédit Agricole S.A. Annual cost savings by 2019 ( m) Retail banking IT transformation 37% 16% 10% 26% 11% Asset gathering Specialised financial services Large customers Corporate Centre 36% 35% 16% 13% Operational optimisation and efficiency Control of non IT purchase Simplification of organisation structures -6 pts of Crédit Agricole S.A. cost/income ratio by 2019 i.e. a cost/income ratio < 60% in 2019 CASA cost savings by business line CASA cost savings by lever 61

62 TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY Ambitious cost cutting programmes for IT expenses and non-it purchase Reduction in IT expenses Convergence of Retail banking IT productions (including the Regional Banks) Convergence of IT programs between: Regional Banks and LCL CASA and CACIB Better coordination of IT purchasing processes Implementation facilitated by appointment of a Group CIO Reduction in non-it purchase Pool purchases, rationalisation of suppliers and catalogues, reinforced monitoring of purchasing commitments thanks to the implementation of new tools ( m) ~2,100 ( m) ~1,600 15% ~320 9% ~ France and Italy 2015 IT costs baseline 2019 recurring cost savings 2015 non-it purchase baseline recurring cost savings 62

63 TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY Additional cost saving drivers Operational efficiency drivers Legal and organisational simplification LCL: ongoing rationalisation of back offices and branch network remodelling, in the framework of a support and departure plan Process dematerialisation and digitalisation Launch of a process to rationalise the Group's legal structures Ongoing streamlining of Crédit Agricole Assurances' organisation Project of real estate costs optimisation (CACF, Cariparma) 63

64 TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY An ambitious investment programme of 7.7bn over 4 years 1 to prepare for the future and better serve our customers Cumulative investment over the plan period ( bn) bn in improving industrial efficiency and cutting costs in all business lines 3.3 ~ 1bn in strengthening the Group's compliance and risk mitigation Regional Banks Industrial efficiency Crédit Agricole S.A. Regulatory Total Developing the business lines and digital transformation 4.9bn in developing the business lines and digital transformation (of which ~80% for Retail banking) 1. Cumulative investments. Investments on a cash-out basis 64

65 CHAPTER 2 IN SUMMARY, A COHERENT STRATEGIC PLAN Crédit Agricole S.A. s solvency sustainably strengthened and a resilient business mix A prudent risk profile and strengthened compliance system

66 CRÉDITAGRICOLE S.A. S SOLVENCY SUSTAINABLY STRENGTHENED AND A RESILIENT BUSINESS MIX Improvement in the quality of Crédit Agricole S.A.'s capital A controlled and oriented increase in RWAs towards Retail banking and Asset gathering Crédit Agricole S.A. CET1 fully-loaded Incurred impacts Change in RWAs ( bn) Chosen impacts 10.7% 1.7% 11% Switch 1 11% % + 16% -2% -4% % pro forma 2019 target 31 Dec pro forma Market impact 1 Regulatory 2 Retail banking Asset gathering Specialised financial services Large customers Corporate centre 31 Dec target + x% Chosen change in RWAs of the business line between 2015 and FX effect and impact of interest rate increase on Insurance RWAs. 2. Quantifiable at this stage (fundamental review of the trading book, low default portfolio, new prudential treatment of securitisation, revision of internal credit and market risk models) 66

67 A PRUDENT RISK PROFILE AND STRENGTHENED COMPLIANCE SYSTEM A Group with a low risk appetite Selective lending policy Market risk weighted assets to represent less than 5% of Crédit Agricole S.A.'s total RWAs in 2019 Control over growth in RWAs A strategic investment in Compliance Guarantee high standards of business ethics and loyalty to our customers Expertise and transparency: customer adviser training to strengthen skills in compliance and customer protection RWAs (in bn) Make life easier for our customers with simple, efficient processes Customer experience: simplify and digitalise processes to make them natively compliant Crédit Agricole SA Groupe Crédit Agricole Boost our Compliance teams to ensure the best possible control over compliance risks 2015 pro forma

68 CHAPTER 3 FINANCIAL AND PRUDENTIAL PLANNING

69 CHAPTER 3 FINANCIAL AND PRUDENTIAL PLANNING 2019 financial targets Revenues and expenses Focus on the Corporate Centre Risk weighted assets and profitability Solvency planning and capital structure Liquidity management

70 2019 FINANCIAL TARGETS Crédit Agricole Group Of which Crédit Agricole S.A. Revenue growth cost / income ratio >+1.5% >+2.5% <60% <60% Cost of risk / outstandings <35bps <50bps 2019 Net income Group share > 7.2bn > 4.2bn 2019 RoTE >10% Fully-loaded CET1 16% 11% TLAC excl. eligible senior debt 22% Pay-out ratio 50%, in cash CAGR vs 2015 underlying pro forma for Crédit Agricole Group simplification transaction 70

71 2019 FINANCIAL TARGETS BUSINESS LINE INDICATORS Revenues CAGR 1 Cost / income 2019 RoNE 2 Retail banking LCL Cariparma ~+0.5% ~+3% ~65% ~55% >16% >16% Asset gathering Insurance Asset management Wealth management >+3% <45% >25% Specialised financial services Consumer credit Leasing & Factoring >+2.5% <46% >13% Large customers Corporate & investment banking Asset servicing ~+2% <60% >11% CAGR vs 2015 underlying pro forma for Crédit Agricole Group simplification transaction and analytical transfer of the cost of the Switch 2 guarantee to Insurance activity 2. RoNE calculated on the basis of a capital allocation tailored to the needs and risks of each business line (see Profitability - Risk weighted assets and capital allocated by business line ). 71

72 BUSINESS LINE REVENUES AND EXPENSES ANALYSIS OF REVENUES A balanced growth in all 4 business lines ~ % 27% 25% 34% 33% Retail banking Crédit Agricole S.A. business lines revenues in bn Relative share in total business lines and CAGR +2% p.a. +3% p.a. Asset gathering +2% p.a. +2,5% p.a. Large customers Specialised financial services ~ % 27% 26% 2019 All business lines contribute in a wellbalanced manner to Crédit Agricole S.A. s revenue growth In Retail banking, growth will mainly come from international entities, and, in particular, from Italy Retail banking Savings management& Insurance Large customers Specialised financial services 1. Asset gathering including, analytically, the cost of the Switch 2 guarantee 72

73 BUSINESS LINE REVENUES AND EXPENSES ANALYSIS OF EXPENSES Expenses well under control in all 4 business lines Crédit Agricole S.A. business line expenses in bn Relative share in total business lines and CAGR ~ 10.7 ~ % 12% stable +2% p.a. stable stable 29% 29% 20% 21% 38% 38% For each business line, increase of expenses is lower than revenue growth Focus on current expenses allows for the financing of planned investments by the business lines 2015 Retail banking Asset gathering Large customers Specialised financial services 2019 Capacity to adjust expense trajectory if necessary Retail banking Savings management& Insurance Large customers Specialised financial services 73

74 BUSINESS LINE REVENUES AND EXPENSES COST / INCOME RATIO ANALYSIS An improvement of the cost/income ratio in all business lines Cost / income ratio (in %) (2015 pro forma) <60 Significant improvement of the cost/income ratio for Crédit Agricole S.A. and all business lines Crédit Agricole S.A More extensive pooling of means with cross costcutting programs in IT and procurement 71 ~65 58 ~55 LCL Cariparma Asset gathering 47 <45 51 <46 Specialised financial services 63 <60 Large customers Specific actions to strengthen operational efficiency in each business line 1. Asset gathering including, analytically, the cost of the Switch 2 guarantee 74

75 FOCUS ON THE CORPORATE CENTRE NET INCOME GROUP SHARE (NIGS) ANALYSIS A 2019 NIGS of the Corporate centre lowered to approximately - 700m Evolution of the Corporate Centre NIGS (in m) ~ -700 ~ -1, Underlying 2015 NIGS Capital simplification and B/S optimisation Transfer of Switch 2 guarantee to Insurance business line Costs allocated to equity stakes TLAC convergence Other items 2019 NIGS Normalisation of Corporate Centre thanks to the capital simplification / strengthening transaction and to the transfer of Switch 2 to the Insurance business line Gradual decrease of funding costs allocated to equity stakes in a low rate environment Limited cost of TLAC convergence 75

76 FOCUS ON THE CORPORATE CENTRE CONSEQUENCES OF THE CAPITAL SIMPLIFICATION ON LEVERAGE A reduction of 12bn of the debt allocated to the funding of equity stakes, of which 10bn in 2016 Debt allocated to the funding of equity stakes (in bn) -43% Simplification transaction Increase in working capital Decrease in working capital In 2016, the capital simplification transaction will allow to reduce by 10bn the share of debt allocated to the funding of equity stakes Between 2017 and 2019, this debt would continue to decrease by approx. 2bn, to reach about 16bn at end Transfer of CCI & CCA to Sacam Mutualisation 2. Income from disposal (individual accounts) 3. Switch 1 reimbursement and Switch 2 allocation to Insurance 76

77 RISK WEIGHTED ASSETS RISK WEIGHTED ASSETS AND CAPITAL ALLOCATED BY BUSINESS LINE Moderate growth of RWAs Capital allocation tailored to the needs and risks of each business line Business lines RWAs (excl. Corporate Centre) pro forma before transfer of Switch 2 guarantee 42% ~ 312 bn 17% 24% 17% 41% 47% 2019 after transfer of Switch 2 guarantee 28% 47% ~ 287 bn 7% 18% 2015 pro forma after transfer of Switch 2 guarantee 35% ~ 278 bn 20% 26% 7% 33% Capital allocated to business lines (excl. Corporate Centre) 39% % 23% 23% Asset Management 2 : 9.5% of RWAs, plus needs for Seed Money as well as stakes and investments Insurance: 80% of Solvency 2 capital requirements, reduced by 9.5% of RWAs transferred by the Switch 2 guarantee to the Regional Banks Other business lines: 9.5% of RWAs Retail banking Asset gathering Specialised financial services Large customers 1. After analytical transfer of Switch 2 guarantee to Insurance for 34bn 2. See Amundi s IPO document. 77

78 RISK WEIGHTED ASSETS CRÉDIT AGRICOLE S.A. A moderate growth in risk weighted assets Risk weighted assets - Crédit Agricole S.A. (in bn) December 2015 Simplification transaction 31 December 2015 proforma FX effect Organic changes Selectivity and optimisation Organic changes of 17bn, 50% generated from Retail banking activities Regulatory impacts taken into account in CIB linked to the following changes: Fundamental review of the trading book Securitisation activity Review of the weighting of low default portfolios Harmonisation of internal models among European banks IFRS 9 Regulatory impacts Offset by action plans in progress: A selectivity strategy in CIB in order to improve quality and return of the portfolio The pursuit of optimisations planned in several business lines 31 December 2019 [ 1=$1.0887] [ 1=$1.20] 78

79 RISK WEIGHTED ASSETS REGULATORY EVOLUTIONS Floor revision in an embryonic state, preventing it from being taken into account in the MTP The future floor revision is not yet defined, which makes it difficult to estimate potential impacts Scheduled for 2019 at the earliest, it is likely that it will not constitute a regulatory constraint by the end of the MTP Assuming a 20% increase in risk weighted assets: Concerning CET1 requirements, the ECB has indicated - all other things being equal that an increase in RWAs should be offset by a reduction of Pillar 2 requirements, in order to limit the impact of regulatory changes on solvency 1 Regarding TLAC, a requirement of around 10bn of eligible senior debt would arise, compatible with a manageable evolution of the issuance programme The leverage and MREL ratios are not impacted 1. In accordance with our interpretation of the sentence: «With the 2015 SREP cycle, we have articulated the steady-state Pillar 2 supervisory capital requirements we expect to see in the banking system. This means that, all other things equal, capital requirements will not be increased further» pronounced by Daniele Nouy, Chair of the ECB supervisory board, ECON, Feb

80 PROFITABILITY NORMATIVE PROFITABILITY OF CRÉDIT AGRICOLE S.A. BUSINESS LINES An increase in profitability for all business lines Business lines' RoNE 1 in 2015 and 2019 RoNE (%) 26 Asset gathering >25% Cariparma >16% LCL >16% Specialised financial services >13% Large customers >11% NIGS ( m) LEGEND: light color= 2015 ; dark color= RoNE calculated on the basis of a capital allocation tailored to the need and risks of each business line 80

81 SOLVENCY PLANNING CRÉDIT AGRICOLE S.A. CET 1 AND TIER 1 RATIOS Fully-loaded CET1 and Tier 1 target ratios of 11% and 12.5% over the MTP duration Fully-loaded CET1 and Tier 1 target ratios Crédit Agricole S.A. 11% AT1 1.5% Estimated margin of 4.5bn+ at the end of the MTP Optimisation of the capital structure with an AT1 target of 1.5% already achieved at beginning-2016 Pay-out ratio of 50% of the net income after AT1 coupon payments, fully-cash, as of 2016 results 9.5% SREP (Pillar 2 requirement) 7% 31 Dec Pillar 1 minimum requirement for Crédit Agricole S.A. Target of 150bps above Pillar 2 requirements (9.5%), already achieved as of 31/12/2015 (pro forma of the Group s structure simplification transaction) 81

82 SOLVENCY PLANNING FULLY-LOADED CET1 RATIO OF CRÉDIT AGRICOLE S.A. A capital planning reconciling a cash pay-out policy in a constrained regulatory environment and capital allocation favouring high profitability business lines Fully-loaded CET1 ratio - Crédit Agricole S.A. +4.6% -2.3% -0.7% -0.7% +0.7% -0.6% -1.0% 11% 11% 31-Dec-15 Net income after AT1 coupons payment Distribution AFS reserve Regulatory impacts 1 Selectivity & 1 optimisation Expansion of each business line Flexibility 31 Dec 2019 Target 50% dividend pay-out ratio, based on net income after AT1 coupon payments, paid in cash as of 2016 results Downward trend in AFS reserves expected in the context of rising interest rates Selectivity and optimisation actions, mainly on CIB Expansion of business lines with strong added value driven mainly by retail banking Leeway allowing flexibility in the solvency monitoring 1. Regulatory impacts, including IFRS 9 82

83 SOLVENCY PLANNING FULLY-LOADED CET1 RATIO Crédit Agricole Group aims to stay among the most solid groups in Europe in terms of solvency Fully-loaded CET1 ratio Targets for Crédit Agricole Group & Crédit Agricole S.A. 31 Dec Dec % 16% 11% 1 11% Taking into account the risk weighting of capital and reserves of Crédit Agricole Assurances (at 370%) the Switch 2 guarantee between the Regional Banks and Crédit Agricole S.A. (for 34bn of RWAs), eliminated within the Crédit Agricole Group scope a 50% pay-out ratio for Crédit Agricole S.A., fully paid in cash Crédit Agricole Group Crédit Agricole S.A. Crédit Agricole Group target: 16% fully-loaded CET1 ratio achieved through organic generation of capital in the Regional Banks Crédit Agricole S.A. fully-loaded CET1 ratio: maintained above a level of at least 11% over the MTP duration 1. Proforma calculation taking into account the capital simplification transaction 83

84 SOLVENCY PLANNING FULLY-LOADED CET1 RATIO OF CRÉDIT AGRICOLE GROUP COMPARED TO ITS PEERS Crédit Agricole Group aims to stay among the most solid groups in Europe in terms of solvency The Group s strategy consists in capitalising on the Regional Banks capacity to retain their earnings in order to differentiate itself from its peers Leeway vs. CET1 requirements set by the ECB (basis points 1 ) Sample of systemic banks 1 having a SREP requirement Crédit Agricole S.A. (non-systemic) (at 11% from 2016) Crédit Agricole Group (at 13.7% in 2015) Crédit Agricole Group (target at 16% in 2019) 9% 10% 11% 12% 13% 14% 15% 16% Fully-loaded CET1 ratio at end Systemic banks providing information on their SREP requirements (Crédit Agricole Group, BNP Paribas, Société Générale, BPCE, ING Group, Santander, Deutsche Bank, Unicredit); CET1 requirements set by ECB include SREP and fully-loaded G-SIB buffer (G-SIB buffer requirement is imperative from 1 January 2019); Source: 2015 financial communication of banks in the sample; Note : ING Group s requirement includes SREP requirement and Dutch Systemic Risk buffer 84

85 SOLVENCY PLANNING CRÉDIT AGRICOLE GROUP: FULLY-LOADED CET1 RATIO AND RWAS Fully-loaded CET1 ratio - Crédit Agricole Group +4.8% +0.3% +0.6% -0.4% -0.5% -2.5% 13,7% 16% 31 Déc Retained earnings Issuing of mutual shares 1 AFS reserve Regulatory impacts Selectivity and optimisation Expansion of business lines 31 Déc Target RWAs - Crédit Agricole Group (in bn) Dec FY effect Organic changes Selectivity and optimisation Regulatory impacts 31 Dec [1 = $] [1 = 1.20$] 1. Regulatory impacts, including IFRS 9 85

86 CAPITAL STRUCTURE AT END-2019 TLAC RATIO EXCLUDING ELIGIBLE SENIOR DEBT Capital structure adapted to future TLAC ratio requirements 1 Additional TLAC Solvency requirement Target capital structure Crédit Agricole Group 19.5% 7,5% 1,5% 2 10,5% ~ 19.7% 5,0% ~ 1,0% 13,7% 22% ~ 5.0% ~ 1.0% 16.0% T1 under Basel 2, T2 and new category of debt as foreseen in the draft French law AT1 CET1 AT1 volumes are calibrated to optimise the capital structure of Crédit Agricole S.A. No additional need of AT1 at Group level TLAC target ratio of 22% excluding ~ eligible senior debt Eligible senior debt constitutes an additional buffer of 2.5% to 3.5% 2 Regulatory requirement end of Dec Actual 31 Dec Target CET1 ratios are fully-loaded, AT1 securities are limited to eligible Basel 3 issues, TLAC includes the phasing and grandfathering of Tier One non-eligible Basel 3 securities and Tier Two securities. 1. TLAC calculations are based on Crédit Agricole S.A. s understanding of the FSB s term sheet rules. They exclude the eligible senior debt of 2.5% to 3.5%. 2. Including SREP Pillar 2 requirements. 86

87 CAPITAL STRUCTURE AT END-2019 LEVERAGE RATIO Leverage ratio: an additional ratio for the analysis of financial strength Leverage ratio at 31/12/2015 Minimum indicative level already exceeded 5.6% 4.5% 1 Minimum indicative level recommended by the Basel Committee 1 January 2018 (3%) Crédit Agricole Group Crédit Agricole S.A. The excess of 2.6 pts for Crédit Agricole Group should cover the potential additional requirements for systemic institutions (SIFIs) 1. Subject to ECB autorisation, with an impact of ca.100 basis points related to the exemption of intragroup transactions. On the contrary, the deposits centralised at CDC have been taken into account (15 bps), in compliance with our understanding of recent information given by the ECB 87

88 CAPITAL STRUCTURE AT END-2019 MREL RATIO Crédit Agricole Group MREL ratio sustainably exceeding 8% 1, excl. preferred senior debt MREL ratio numerator ( bn) Definition: equity, hybrid debt and non-preferred MLT senior unsecured debt with a residual maturity >1 year French Law (after the law becomes effective, during 2016) MREL ratio denominator ( bn) Definition: total prudential balance sheet adjusted for derivatives ~ 1,230bn MREL excluding preferred senior debt + Loss absorption capacity - Covered deposits Individual and SME deposits Junior deposits Derivatives Structured notes Preferred MLT senior debt: outstanding and new issues New category of non-preferred MLT senior unsecured debt: new issues Tier 3 Tier 2 2 Tier 1 / AT1 100bn % 31 Dec > 8% 31 Dec Equity 3 31 Dec Dec Minimum level allowing recourse to the Single Resolution Fund subject to decision of the resolution authority 2. Including Tier 2 > 1 year amortised for prudential purposes 3. Phased-in CET1 of Crédit Agricole group at 31/12/

89 LIQUIDITY MANAGEMENT LCR AND NSFR Regulatory requirement End-2015 ratio Target LCR Crédit Agricole S.A Crédit Agricole Group 70% at 01/01/ % from 01/01/2018 >110% ~110% >110% ~110% LCR: the aim of the Group is to secure its compliance with regulatory requirements by maintaining a buffer of a magnitude of 10% The Group s financial structure provides for a surplus of stable resources covering LCR needs (at 100%) of commercial activities. The Group intends to maintain this structure over the MTP NSFR 1 SRP 2 Crédit Agricole Group Crédit Agricole Group 100% from 01/01/2018 >100% >100% 108bn > 100bn NSFR: no definitive text yet The EBA report was published on 18 December The European Commission should make a legislative proposal before December 2016 These proposals remain penalising for ST market activities (repos/ reverse repos and lending/borrowing transactions) as well as derivative activities (20% add-on) Moreover, the EBA advocates an application on both individual and consolidated scopes 1. Calculation based on our understanding of the 18 December 2015 EBA text. 2. Stable Resources Position: long-term sources surplus (cf. Registration Document definition) 89

90 CHAPTER 3 SYNTHESIS FINANCIAL AND PRUDENTIAL PLANNING A satisfactory, recurring and increasing profitability over the duration of the MTP A prudential situation already fully compliant with all known requirements Dividend pay-out policy confirmed: 50% pay-out, in cash

91 CHAPTER 4 BUSINESS LINE STRATEGY

92 CHAPTER 4 BUSINESS LINE STRATEGY RETAIL BANKING Autres

93 CHAPTER 4 BUSINESS LINE STRATEGY REGIONAL BANKS

94 A STRENGTHENED LEADERSHIP IN RETAIL BANKING IN FRANCE #1 bank in terms of loans outstanding ~7,000 branches nationwide #1 financial partner of the French economy Loans outstanding ( bn) #1 multichannel bank #2 brand and #1 banking group in France in digital services (web, social media, mobile) 5 3.5m customers of "Ma Banque" > 100,000 digital contracts signed every day 50,000 multi-channel advisers, central pillars of the customer relationship #1 bank in all market segments 24m customers, including 21m individual customers #1 bank in terms of penetration rates on all our customer segments 28% of individuals 1 25% of small businesses 2 36% of corporates 3 85% of farmers 4 #1 bank for young customers with 27% penetration of the age group 1 Proven crossselling ability A high equipment rate which continues to progress, mainly thanks to strong growth in insurance Trends in number of products per individual customer current account 6 (in units) ~9m property and personal insurance policies at end Sofia Pépites TNS Sofres Adequation Top 100 du Rayonnement Numérique des Marques La Factory/NPA September Regional Banks customer database 94

95 IDENTITY AND VALUES THAT STRENGTHEN THE CUSTOMER RELATIONSHIP Cooperative values, at the heart of our relationship A bank valued for its usefulness and its local roots #1 cooperative bank in France #2 in Europe (in number of mutualshareholder customers at end 2014) Number of mutual shareholders at end 2014 (millions) ~ 9m mutual-shareholder customers at end 2015, i.e m since end 2013 According to our customers, Crédit Agricole stands out significantly on 3 relationship criteria 1 1 A bank highly active on a local level 2 That contributes to developing the regional economy 3 Close to its customers Loyal customer base Main bank for our customers One of the lowest attrition rates in the market 2 One of the best rates in main banking relationships 2 1.9% 1.5% -0.4 pt 66% 75% +9 pts Peer group average 3 Peer group average 3 1. Image survey 2015, Crédit Agricole S.A. 2. BAROC French networks of BNPP, SG, LCL, Banques populaires, Caisses d épargne, Crédit Mutuel, CIC and La Banque Postale 95

96 3 KEY UNDERLYING DRIVERS OF BUSINESS GROWTH CUSTOMER CAPTURE Strong customer capture capability, with an acceleration in the young customer segment Support for entrepreneurs and business start-ups with the launch of new attractive financing packages Implementation of a strategic plan dedicated to the farming segment FINANCING THE ECONOMY A dominant role in financing our customers' home projects Supporting SMEs and mid-corps in their investment needs Sharp increase in production of small businesses loans STRENGTHENED EXPERTISE Rollout of Crédit Agricole Private Banking and wealth management solutions Consolidation of investment banking and strengthening of regional expertise, particularly in M&A Implementation of an organisation dedicated to the agri-foods market: regional business advisers and a national network of experts >700,000 new customers p.a. +2 pts penetration rate age group in % market share of farmers < 40 year old in 2014 (+7 pts vs 2012) 23% market share at end 2015 (steady growth since 2011) 15bn of financing for SMEs and mid-corps in % p.a. in production of small businesses loans since 2013 x 3 number of management contracts (Indosuez discretionary and advisory mandates) from end 2013 to 2015 x 3 related assets under management from end 2013 to Sofia

97 TRANSFORMATION OF OUR MODEL WELL UNDERWAY Relationship commitments implemented Focus on innovation at the heart of our action Your loyalty is rewarded Impartial advice Clear advice Inauguration of "Le Village by CA" in 2014, Crédit Agricole's business incubator which now houses ~100 young innovative companies Advice that gives you time SOS Card Evolution of our digital ecosystem Launch of Freasy, Crédit Agricole's free mobile service for the age group Launch of mobile POS solutions on smartphones for itinerant merchants #1 bank on social media > 1 million visits p.a. on 11% of home loans production of the Regional Banks visitors a month Ma Banque Mon Assurance (Pacifica) CA Store Ma Carte More than 40 apps certified by CA Store, co-development platform for web and mobile banking apps between Crédit Agricole customers and digital companies 3 promises to set our customer experience apart Easy access Personal service Simplicity 97

98 RENEWED FINANCIAL PERFORMANCE Continuous growth in customer assets with a strong focus on new inflows Revenues 1 stable at a high level despite the challenging environment On- and off- balance sheet customer assets ( bn) CAGR +3.1% Off-balance sheet On-balance sheet Loan to deposit ratio (net) 114% 2015 Revenues ( bn) CAGR +0.9% 14 14, Best cost/income ratio in the market and cost of risk well under control Growth in NIGS 1 in a context of decreasing profitability among our main French peers Cost / income ratio in 2015 (%) 67% 56% -11 pts Cost of risk (bps) Peer group average net income 2 ( bn) CAGR -1.9% 1,2 1,1 Regional Banks net income ( bn) CAGR +1.2% 3,4 3,6 Peer group average Contribution of Regional Banks to Crédit Agricole Group's revenues and net income Group share 2. French networks of BNPP, SG, LCL, BP and CE 98

99 SUMMARY OF OUR STRATEGIC AMBITIONS THROUGH TO 2019 Reaffirming our Customer-focused Universal banking model Group level action Provide all our customers with a full range of banking, insurance and real estate services Set ourselves apart through a new commercial positioning Act and behave as the true partner to our customers and give them real solid proof 2 strategic objectives for the Regional Banks 1 2 Step up the cooperative model Increase the number of mutual-shareholder customers, support young clients in both good and bad times Accelerate business development Gain new customers, stimulate business in the specialised markets and develop revenue drivers 2 conditions for implementation Build on a differentiating distribution model Accelerate the digital transformation 99

100 1 STEP UP THE COOPERATIVE MODEL Increase our number of mutual-shareholder customers with a target of 12 million in millions mutual-shareholder customers targeted in 2019 Support young clients (18 to 30 year old) in both good and bad times Our ambition To be the bank that best supports young clients and helps them get a foot on the ladder 6m ~9m 12m 3 levers 1 An exemplary banking relationship All new customers have the potential to become mutual-shareholder customers 2 Design a start-up" approach to help get them started in life: "first work experience, first job 3 Foster responsibility and autonomy among young clients 100

101 2 ACCELERATE BUSINESS DEVELOPMENT GAIN NEW CUSTOMERS REINFORCE BUSINESS IN SPECIALISED MARKETS DEVELOP REVENUE DRIVERS Strengthen our positions in all segments Individuals: acceleration in home loans and young customer segment Farmers and small businesses: specific development plans through to 2020 Accelerate momentum in high net worth segment Capture new corporate customers Develop venture capital solutions Strengthen our position in consumer finance and death & disability insurance Generating recurring revenue streams by developing "Merchant solutions": e- commerce, Square achat, bons plans Accelerate sales of protection solutions Target penetration rates (2019 vs 2015) +1 pt in individuals +4 pts in farmers aged < pts in small businesses +0.5 pt market share in home loans + 55bn of inflows in high net worth segment (i.e. ~+20% vs 2015) +1.5 pt in corporate segment penetration rate vs pt market share in consumer finance vs million personal and property insurance contracts (i.e. ~+22% vs 2015) 101

102 BUILD ON A DIFFERENTIATING DISTRIBUTION MODEL: OUR FULL MULTI-CHANNEL BANKING MODEL A full-choice model: from 100% human to 100% digital Illustration of the customer journey for a home loan Human interactions +++ Information search Agreement in principle and pricing Subscription Revision of repayment schedule Early repayment BRANCH % of customers ~10% 100% human + 100% digital Face to face Phone /chat Social media Website/web callback App Jean Aged 45 Laure Aged 41 Raphaël Aged 28 Prefers to have a face-to-face relationship with his adviser MULTI-CHANNEL ~70% Attached to the simplicity of digital for some transactions and the extra value provided by an adviser DIGITAL Attached to the freedom and simplicity of digital banking ~20% TARGETS 100% of branches transformed into multi-channel branches managing the overall customer relationship, with in-branch advisers available through all channels (face-to-face, , telephone, chat, web call back, etc.) providing advice and follow-up services to all customers 100% of products and services dematerialised and subscribable on all devices (smartphone, tablet, web) A collaborative approach to the customer : Group and Regional Bank experts available to bring value-added to our customers 102

103 ACCELERATE THE DIGITAL TRANSFORMATION Become leader in customer experience in France with a Mobile first strategy Re-design our 300 customer journeys covering the entire banking and insurance offer in digital and multi-channel mode through decentralised Digital Factories nationwide Continue to convert our information system to open architecture (web services/api) to enable open innovation Work closely with the Fintechs, through partnerships and opening ~20 regional "Le Village by CA" offices in 2016 and 2017 Ramp up the Group's Data Lab for more intensive use of data Support our human resources in this digital transformation with the creation of a Digital Academy 103

104 SUMMARY OF FINANCIAL AND COMMERCIAL TARGETS COMMERCIAL TARGETS FINANCIAL TARGETS Positive NPS 1 in all markets 12m mutual shareholder customers Penetration rates +1 pt in individuals +2.5 pts in small businesses +1.5 pt in corporates +2m personal and property insurance contracts + 300m in additional revenue synergies to reach 2.5bn 2 in Net Promoter Score 2. Revenues earned by CASA Group entities thanks to the Regional Banks 104

105 CHAPTER 4 BUSINESS LINE STRATEGY BFORBANK

106 CRÉDIT AGRICOLE S DIRECT BANK STRATEGIC POSITIONING MTP ACHIEVEMENTS Complementary positioning to the Regional Banks and LCL: a fully digital bank to meet the new expectations of mobile and autonomous mass affluent customers A positive, differentiating image of an innovative, modern bank with a multi-award winning customer service 1 A full range of savings solutions: saving accounts, life insurance, equity savings plan, mutual funds Sharp increase in spontaneous brand awareness of BforBank and a 61% brand awareness recall among mass affluent customers Growing customer base ~140,000 customers at end 2015 An enhanced product range Day-to-day banking offer launched in May ,000 bank accounts at end 2015 (in line with target of 25,000 demand accounts a year in 2016) Consumer finance offer launched in November Online banking category, Étude Inference Operations, Viséo Conseil 106

107 CRÉDIT AGRICOLE S DIRECT BANK KEY STRATEGIC PRIORITIES Gradually accelerate the gaining of new customers while Maintaining our mass affluent positioning Controlling the average customer acquisition cost Continue to expand our product and service range Launch of a home loan offer in 2016 Creditor insurance offer Broaden financial and wealth management services, in particular by developing partnerships with Fintechs 500,000 customers in 2020, i.e. +360,000 customers in 5 years Increase our share of main banking relationships and the number of products per customer 107

108 CHAPTER 4 BUSINESS LINE STRATEGY LCL

109 LCL, A STRONG POSITIONING An urban bank 1,880 branches 72 private banking centres 47 business centres 64% of branches in urban areas 65% of revenue generated by branches along the Paris-Lyon-Marseille corridor A leading position in several customer segments 43% of mid-corps 30% of dental surgeons 41bn in assets under management (Private Banking and Wealth Management) Strong non financial assets Brand awareness among the Top 3 in France Prime urban locations 50% of recruitments at Masters-degree level 109

110 ...AND SOLID FUNDAMENTALS IN A PERIOD OF TRANSFORMATION Solid fundamentals - 53% drop in cost of risk from % loan to deposit ratio at end 2015 (vs 129% in June 2011) And since the launch of LCL's transformation plan Cost control Transformations Process digitalisation -9.3% reduction in overhead costs since the launch of LCL's transformation plan in % reduction in staff numbers since A network reorganised in 2015 to provide more advice (base 100) Improvement in customer satisfaction in all markets (base 100) Receptionist In-branch advisers Individuals Small businesses Private banking Corporates New tablet and mobile apps Open a new student account on a tablet Experimenting with open bank design 1 in LCL's flagship branches in Paris and Lyon Security of payment systems: voice authentication 1 st cash-back programme in France 2 25 products available online through an adviser and 28 products 100% online 1. Open Bank: 100% connected and self-service branches 2. Cash back programme in LCL's partner stores - Source: LCL efficiency reports 110

111 AMBITION 2020: MAKE LCL THE PREMIUM SERVICE BANK IN URBAN AREAS Our achievements Our beliefs Net new customers ~+ 80,000 customers over the period Adapting the distribution model to new practices A network of 1,200 main branches and ~680 secondary branches reorganised according to regional growth 10 Customer Relations Centres spread across the country to support the branches and connected customers Regional business advisers, professionals and wealth management specialists À la carte banking and insurance services Customers will be 100% autonomous in day-to-day banking products and services Access to an adviser 6 days a week until 10 p.m. Digital bank and adviser's expertise will be the winning combination Today's Premium service will be tomorrow's standard service Tomorrow's bank will be instinctively adaptable and agile Investment in skills and digitalisation 150m invested in 2014 and 2015 Our ambition 2020 Make LCL the Premium service bank in urban areas 111

112 OUR COMMERCIAL AMBITIONS IN 2020: SUPPORT OUR BUSINESS FRANCHISES LCL, the Premium service bank in urban areas TRADITIONAL BUSINESS FRANCHISE FRANCHISES Individual and small businesses Continue to gain and equip urban individual customers Private Banking Develop a unique relationship and dedicated offers and expertise in wealth management for every single need Certify Private Banking advisers for their technical and relationship expertise Professionals Consolidate our leadership among professionals Corporates and Institutionals Strengthen our relationship banking model combining local service with expertise (from day-today needs right through to corporate finance operations) in all corporate segments Forge long-term strategic partnerships with companies and their managers +180,000 customers individuals and small businesses 25% of customers equipped in P&C and D&D insurance 1 1. D&D : death and disability ~ 5bn in net inflows in Wealth Management and Private Banking 50% of mid-corps customers of LCL 112

113 MAKE LCL THE PREMIUM SERVICE BANK FOR ALL ITS CUSTOMERS Strengthen LCL's Premium positioning with a rapidly evolving urban clientele Support customers through a coordinated approach to their business and personal needs, by expanding the range of services offered beyond financial needs Offer all our customers a Premium service Faster response to customer requests and, in particular, online home loans with immediate in principle agreement Transform back offices into specialised advisory divisions Wealth management, births, divorce, inheritance Family head Account opening, financing, development Business head Redefine services thanks to digital Tailored services using big data and adviser expertise Innovative financing methods and services (crowdfunding platforms, dedicated offers for our philanthropic customers, etc.) Apartment owner Property search, administrative formalities, lending, security systems Association chairman Account management, search for partners 113

114 BECOME AN INTENSIVE DIGITAL AND RELATIONSHIP BANK Step up relations with our customers by leveraging digital technologies A mobile first strategy for both individual and business customers : simple operations, subscriptions, notifications, adviser chat Shift from services approach to solutions approach adapted to the customer's different life stages Offer access to human expertise throughout the digital process : staff in Customer Relations Centres and branches, web chat and video conferencing tools, etc. Make it easier for our customers to use digital services Offer customers a digital ecosystem and service platforms in the financial sphere and beyond : bank accounts and wealth aggregator, platforms for introducing start-ups to mature companies, etc. Help our small business and corporate customers in their digital transition 50% of sales made online either autonomously or with the assistance of an adviser in 2019 (vs. 13% at end ) 1. Only on the 80% of the range available online 114

115 BECOME THE #1 BANK IN URBAN AREAS Redefine the in-branch service promise in a renovated resized network Broaden access to an expert adviser 6 days a week from 8 a.m. to 10 p.m. thanks to our 10 regional Customer Relations Centres Within our branches, create an entirely seamless link between digital and relational Redefine our urban branch network Resize the branch network around main branches Transform our 40 flagship branches into genuine Open Bank branches 1 at the heart of urban areas, following the model of Paris and Lyon Target network ~40 flagship branches ~1,200 main branches ~400 secondary branches 10 Customer Relations Centres 1. Open Bank: fully connected area with self-service available 115

116 SIGNIFICANT COST SAVINGS TO FINANCE AN AMBITIOUS INVESTMENT PROGRAMME Recurring cost savings Investment in transformation -1.5% / year including exceptional transformation investments 1 450m of exceptional transformation investments 2 Convergence of retail banking IT productions Applications convergence with Regional Banks IT systems Digitalisation of processes Transformation of branches Digital innovations Change management Operational efficiency Back office optimisation Continued reduction in staff numbers 1. Percentage reduction in costs unchanged excluding exceptional transformation investments (CAGR : -1.5% p.a.) 2. In addition to recurring annual investments, on a cash-out basis 116

117 SUMMARY OF FINANCIAL TARGETS Make LCL the Premium service bank in urban areas 2019 FINANCIAL TARGETS Revenues Cost / income ratio 3.7bn in pts from 2015 to 2019 Jump in revenues as of 2018 Decrease in cost / income to ~63.5% 1 RoNE >16% in 2019 Good profitability level in % including the impact of exceptional investments related to the plan 117

118 CHAPTER 4 BUSINESS LINE STRATEGY CARIPARMA

119 167_84 CARIPARMA GROUP: RECOGNISED POSITIONING AND STRENGTHS Solid financial structure alongside rising profitability A3 rating One of the best rated banks in Italy by Moody s (higher than the Italian sovereign) 5.2bn Net surplus of deposits over loans Underlying net income 1 continuously growing ( m) One of Italy's largest retail banks 1.7 million customers With a large proportion of high net worth customers Branch market share No presence > 3% >25% Presence in the prosperous regions of Italy With the support of all the Group's business lines that operate in Italy Recognised strengths Home loan market share growing continuously (>6% growth in new lending in 2015) Recognised expertise in Agri-business Massive transformation of the branch network with ~25% of cashless branches and significant efficiency gains 1. Net income excluding CALIT, before specific items (additional provision in 2013, revaluation of Bank of Italy shares and additional provisions in 2014) 119

120 6_85 149_85 30_ MTP : SIGNIFICANT ACHIEVEMENTS Balanced growth with an acceleration in offbalance sheet savings Modernisation of branch network and completion of the cost cutting plan initiated in 2012 Sustained growth in customer assets, +11% since end 2013, including +34% in life insurance and mutual funds, bringing a significant contribution to intragroup synergies Controlled growth in lending: +2% over the same period Positive trend in revenues, +6% 2015 vs 2013, driven by a decrease in the cost of deposits and shift in mix towards fee-earning products Excellent liquidity level More than 220 cashless branches, generating a significant efficiency gain and a 5 points decrease in the cost/income ratio from 2013 to 2015 (excluding SRF) Best-in-class operational efficiency linked notably to the voluntary redundancy plan (>450 departures since 2014) and to investments in innovation Loan to deposit ratio (2015) Cariparma Group Italian peers 1 Cariparma Group 86% Cost / income ratio (2015) Italian peers 1 55% 60% 95% Cost of risk returning to normal First results emerging from the implementation of new tools and processes and from the strengthening of the loan-recovery process Improvement in cost of risk, down from more than 140 bps in 2013 to 117 bps in Among the best in the Italian market in terms of impaired loans ratio Impaired loans ratio 2 (in %, 2015) 3 rd 6,5 13,3 13,8 15,1 16,3 23,3 24,2 24,9 27,8 34,8 1. Panel of 9 retail banks: Unicredit Commercial Italy, ISP Banca dei Territori, Credem, UBI, BPER, Carige, BPM, BP, MPS. Costs excluding SRF, deposit guarantee fund and Italian bail-out plan in 2015 Source: Banks' financial communications 2. Gross. Panel of 9 retail banks. Italy scope for Unicredit. Data at Sept-2015 for BMPS and Credem. Source: Banks' financial communications 120

121 : ACCELERATION IN BUSINESS DEVELOPMENT Renewed drive to win new customers Accelerate multi-channel transformation to improve customer service Strengthen synergies with the rest of the Group Initiatives supported by An exceptional investment plan An operational efficiency programme to finance growth 121

122 1 RENEWED DRIVE TO WIN NEW CUSTOMERS Accelerate growth in savings management Accelerate customer capture through home loans Create a network of 300 financial advisers (employees of the bank) with a high expertise in advice and sales provided at the customer s home Launch an e-immobilier website to win new customers Increase our market share in home loans Broaden our Private Banking services for mass-affluent customers Attract digital customers Launch a proprietary brand online platform providing a complete offer of products and services Meet the expectations of young customers Support growth in areas not well served by the physical branch network Distribution of all Crédit Agricole Group products 122

123 2 ACCELERATE MULTI-CHANNEL TRANSFORMATION TO IMPROVE CUSTOMER SERVICE Transform our model to improve customer service Simplify processes and key services Implement a new customer relationship model Provide training programmes for advisers / change management Strengthen integration between the branch and digital channels Better integration of the various channels (including digital) through multi-channel advisers and a new CRM system Advice-oriented branches, 50% of cashless branches in 2019 Stimulate online banking Launch an e-agency offering all the services of a traditional branch through online advisers Actively promote mobile apps and digitalisation of processes Objectifs TARGETS Continue to improve our NPS (net promoter score) Increase share of multi-channel customers from 18% to 40% Increase share of mobile customers from 7% to 25% 123

124 3 STRENGTHEN SYNERGIES WITH THE REST OF THE GROUP Reinforce our brand affiliation with the Crédit Agricole Group A change in the Cariparma Group brand is scheduled to capitalise on the Crédit Agricole Group membership New brand to be launched mid-2016 Improve our presence in the mid-corp segment by leveraging CACIB's expertise Expand Cariparma's presence in the mid-corp segment Work with CACIB on selling capital markets products and origination/arrangement solutions adapted to mid-corp needs Confirm on our niche strategy in the Agri-business sector Adopt a service and distribution model dedicated to Agribusiness customers Develop intermediated lending through the Agilor platform bn in mid-corp lending in bn in Agri-business lending in Agricultural machinery financing platform developed by CA Group 124

125 AN EXCEPTIONAL INVESTMENT PLAN AND OPERATIONAL EFFICIENCY PROGRAMME An exceptional investment plan of almost 625m Increase the proportion of investment in process optimisation, IT security and digital transformation Investment 1 ( m) A HR plan to attract new talents Acquire specialised skills in key growth areas Attract new young talents with the support of Crédit Agricole Group's HR programmes Increase employee s mobility between our two domestic markets, France and Italy New measures to improve operational efficiency Continue to rationalise the branch network 50% of branches cashless by 2019 Selective closure of ~40 branches, with new branches opened in strategic areas Simplify processes and reduce costs Centralise back offices and rationalise the Group's offices in Italy Complete process optimisation alongside digital transformation Transform IT operations and core banking by capitalising on the CA Group Solutions platform 2 Drastically streamline the loan approval and follow up processes 1. Investments on a cash-out basis 2. Economic Interest Group "Consorzio Servizi CA Group Solutions" 125

126 SUMMARY OF FINANCIAL AND COMMERCIAL TARGETS Strong ambitions built on the reinforced operational efficiency and financial solidity of the Cariparma Group since 2013 COMMERCIAL TARGETS FINANCIAL TARGETS +2% p.a. in on-balance sheet deposits + 12% p.a. in mutual fund and life insurance assets + 5% p.a. loan book +20% in home loan production vs ~3% p.a. revenue growth from 2015 to 2019 ~ 55% cost/income ratio in m of cumulative investments 1 in million customers in 2019 < 60 bps cost of risk > 16% RoNE 1. Investments on a cash-out basis 126

127 CHAPTER 4 BUSINESS LINE STRATEGY Other OTHER INTERNATIONAL RETAIL BANKS

128 Autres TARGETED GROWTH IN SYNERGY WITH THE GROUP'S OTHER BANKS AND BUSINESS LINES Continue to develop business and strengthen our customer relationship while preserving operational excellence and financial solidity FINANCIAL TARGETS +~5% p.a. revenue growth from 2015 to 2019 ~ 1.5bn surplus of deposits over customer loans <55% cost/income ratio in 2019 ~20% RoNE Step up the digital transformation of our banks to improve their customer appeal Selective expansion of our customer base in each country Universal banking in Poland and Morocco Agri-business in Ukraine and Serbia Corporate and high net worth customers in Egypt Strengthen intragroup synergies in the corporate segment, by supporting the Group's customers in their international markets Pursue strong and secured revenue growth Preserve operational excellence and financial solidity Pursue control over costs and risks Maintain high profitability and excess liquidity 128

129 CHAPTER 4 BUSINESS LINE STRATEGY ASSET GATHERING

130 CHAPTER 4 BUSINESS LINE STRATEGY

131 A LEADING POSITION IN EUROPE IN ASSET GATHERING ACTIVITIES (1/2) A leading position in Europe coupled with a strong growth drive momentum #1 European asset manager ( 985bn of AuM at end 2015) #1 bancassurer in France and Europe (~ 30bn of 2015 premium income 1 ) #2 insurer in France Amundi: Leading European asset manager and among the world's top 10 Assets under management 2 ( bn) Crédit Agricole Assurances: #1 European bancassurer and # 2 insurer in France Premium income 1 ( bn) Significant increase in revenues Revenues ( bn) Amundi CAA Under IFRS ; 2. Including advised and distributed assets (change of method at 01/01/2015, 2013 and 2014 pro forma) 131

132 A LEADING POSITION IN EUROPE IN ASSET GATHERING ACTIVITIES (2/2) Business lines with high, recurring profitability 2015 FINANCIAL INDICATORS Asset gathering (including CA Indosuez WM, excluding CA Immobilier) of which Insurance of which Asset management Net income 1,803m 1,181m 519m 2 RoNE ~22% 1 ~19% 1 ~29% 1 Cost / income ratio 43.9% 26.7% 53.4% 2 1. Insurance RoNE calculated on 80% of Solvency 2 capital requirements, reduced by 9.5% of RWAs transferred by the Switch 2 guarantee to the Regional Banks restated from the analytical transfer of Switch 2 guarantee to Insurance activty; Asset management RoNE calculated on the basis of 9.5 % of RWAs plus needs for Seed Money as well as stakes and investments 2. Excluding IPO expenses 132

133 A LEADING POSITION IN EUROPE CRÉDIT AGRICOLE ASSURANCES: #1 BANCASSURER IN EUROPE, LEADER IN FRANCE IN ITS MARKETS 30.4bn in premium income in % in France (i.e. 25.3bn) 17% International (i.e. 5.1bn) Savings/retirement Death & disability/creditor/group insurance Property & casualty 79% ~ 24.0bn 10% ~ 3.0bn 11% ~ 3.4bn Solvency A Solvency II ratio that comfortably covers regulatory requirements 178% Solvency II ratio calculated using the standardised approach at 31/12/2015 #2 insurer in France in #1 bancassurer in Europe #8 insurer in Europe #2 life insurer in France #1 individual death & disability insurer in France #2 creditor insurer in France #5 insurer in France for retirement planning products #4 home insurer in France #7 car insurer in France 1. Under IFRS 2. Source: Argus de l Assurance rankings published in 2015, Jasmin report "L assurance emprunteur en France",

134 A LEADING POSITION IN EUROPE CRÉDIT AGRICOLE ASSURANCES: STRONG GROWTH IN BUSINESS AND RESULTS Sustained growth in savings/retirement business Premium income up ~9% p.a. on average from 2013 to 2015 AuM in bn Premium income 2 ( bn) % % % % 30.4 Property & casualty Death & disability /creditor /group insurance Savings / retirement Confirmed success of property & casualty insurance in France and Italy Number of contracts (in millions) 1 Net income Group share also up sharply from 2013 to 2015 Net income Group share ( m) +4% +6% +5% +13% ,039 1, Car, home, legal protection, health, personal accident, liability, farming, property & casualty 2. Under IFRS 134

135 A LEADING POSITION IN EUROPE AMUNDI TODAY KEY DATA The leading European asset manager Unique industrial model built around two core client businesses Recognised product offer Resilient profitability and solid balance sheet 985bn AuM, #1 in Europe, #10 globally Created in 2010 through the merger of CAAM and SGAM A global player, present in 30 countries across 5 continents An established brand name Provider of savings solutions for 100 million retail customers in partner networks and 1,000 third-party distributors Provider of investment solutions for 1,000 institutional and corporate clients Full offer with a view to providing the most suitable solutions to each client High quality and sustainable performances, focus on risk-adjusted returns Diversified business mix ensuring high resilience of revenue base Industrial model allowing economies of scale through fully integrated support functions, driving best-in-class profitability High efficiency ingrained in corporate culture, lean management Solid balance sheet, a differentiating factor to earn clients confidence 2015 KEY FIGURES 985bn in assets under management 1,657m revenues 773m 1 GOI 519m 1 net income 53.4% 1 cost/income ratio A+ rating/stable outlook (Fitch) 2 ~3,000 employees (FTE) 1. Excluding IPO expenses 2. April

136 A LEADING POSITION IN EUROPE AMUNDI: AMONG THE WORLD'S TOP 10 ASSET MANAGERS 3,844 Assets under management ( bn) at 31/12/2014 2,577 2, bn at 31/12/2015 European asset managers US asset managers 1,595 1,407 1,267 1,167 1, BlackRock Vanguard AM State Street Fidelity BNY Mellon IM JPMorgan AM Capital Group PIMCO Pramerica IM Goldman Sachs AM Northern Trust AM Wellington Natixis GAM Franklin Templeton Deutsche AWM TIAA-CREF Invesco L&G IM Axa IM Source: IPE "Top 400 asset managers" published in June 2015 and based on AuM as at December Note: Largest European asset managers based on total assets under management (AuM) Scope Amundi Group All AuM having been re-calculated by Amundi to exclude (i) Wealth Management activities and (ii) Asset managers having their parent/holding company outside Europe 1. Including advised and distributed assets 136

137 A LEADING POSITION IN EUROPE AMUNDI: A BEST-IN-CLASS COST/INCOME RATIO 2015 cost/income ratios of the main global asset managers 1 52,4% 53,5% 59,4% 61,9% 65,2% 69,0% 69,4% 76,7% 79,4% Source: Companies, latest annual reports N.B.: Cost / income ratio = net revenues/operating expenses. Figures are as reported (including exceptional items). Net revenues include financial income/(expenses) for consistency purposes. Sample of asset managers for which information is available. 1. Amundi's published consolidated financial statements at 31 December 2015 (excluding IPO expenses) 137

138 A LEADING POSITION IN EUROPE AMUNDI: A SUCCESSFUL MERGER PROVIDING A PLATFORM FOR GROWTH + 315bn in AuM from 2009 to 2015 Strong momentum in net inflows Assets under management ( bn) Net inflows ( bn) 670 CAGR 0.1% CAGR 9.6% Retail Institutionals Successful integration following the merger of CAAM-SGAM in 2009, laying the foundations for growth Strong growth momentum in both Group's activities, Retail and Institutional Source: Pro-forma data based on a consistent definition of client segments and asset classes through the period, including 100% of Asian JV s AuM 138

139 A LEADING POSITION IN EUROPE AMUNDI: A HISTORY OF PROFITABLE GROWTH Amundi's profitability from 2013 to 2015 ( m) % % Net income Net income Group share Excluding IPO expenses 139

140 A LEADING POSITION IN EUROPE REAL ESTATE: A COMPREHENSIVE OFFER SERVING OUR CUSTOMERS' WEALTH MANAGEMENT NEEDS Real estate at the heart of Crédit Agricole Group Leader in real estate funds en France #5 property manager in France Leading real estate investor in France 17.2bn in assets under management at end 2015 of which: Institutionals: 10bn Individuals: 7.2bn ~290,000 property units managed at end estate agencies in France ~ 30bn invested 1 at end bn of new investment 1 in Third-party investment 140

141 OUR AMBITION: ACCELERATE GROWTH 3 growth drivers Base our growth on a renewed wealth advisory approach Fully exploit our synergy potential Step up the momentum specific to each activity 141

142 1 A RENEWED CUSTOMER ADVISORY APPROACH INDIVIDUAL CUSTOMERS Individual customers: an overall wealth advisory approach, a renewed offer INDIVIDUAL CUSTOMERS ADVISER Conseil global et personnalisé Range of savings and investment solutions On-balance sheet savings Real estate Life insurance and mutual funds Death & disability 142

143 1 A RENEWED CUSTOMER ADVISORY APPROACH CORPORATE AND INSTITUTIONAL CLIENTS Corporate and institutional clients: the partner of choice for group pensions, employee savings, death & disability and health CORPORATE/INSTITUTIONAL CLIENTS Analysis - Advice Group pensions Employee savings Death & disability Health 143

144 2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (1/3) Adapt our range of savings solutions to the new regulatory and market environment and fully exploit the synergy potential between CA Assurances and Amundi Scale up our creditor insurance business Expand the share of unit-linked contracts in savings/retirement insurance AuM by +5 points by end 2019 Insource group insurance contracts for the Regional Banks Be the partner of choice to companies for their group pension, employee savings, death & disability and health plans Build an integrated advisory/coverage set-up to large corporates leveraging the expertise of both CAA (Articles 83 and 39 pensions, health, death & disability) and Amundi (employee savings and collective retirement savings plans) Strengthen our position as #1 retail asset gatherer of real estate investment funds in France Use our real estate expertise to serve our clients' wealth management needs Exploit the Group s investment capacities in order to strengthen our positions regarding institutional clients Scale up business in new property sales through our retail banks 144

145 2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (2/3) Be the partner of choice to companies for their group pension, employee savings, death & disability and health plans An overall offer A comprehensive offer including all pension products (Article 83 and 39 pensions, collective retirement savings plans and lump-sum retirement benefits), health and death & disability insurance An integrated sales and marketing set-up/advisory approach A coordinated Amundi/CA Assurances "advisory" focused sales and marketing approach, calling on high-level expertise and covering the overall relationship with the company A "facilitated" customer relationship A unique, transversal "web" front to facilitate the process for companies and their employees Simulation tools TARGET x 2 our market share in group pensions from 8% to 16% by 2019 Innovative services 145

146 2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (3/3) Use our real estate expertise to serve our customers' wealth management needs INDIVIDUALS Real estate funds Strengthen our position as #1 retail asset gatherer in France New property sales Property management Pre-owned housing transactions Develop sales of new properties to reach a target of 10,000 sales through the Group's retail banks Set up a platform for new property sales Strengthen partnerships with first-class property developers Become a leading player in rental property management by strengthening the offer throughout the country Support our customers and prospective customers in buying and selling their properties INSTITUTIONALS AND CORPORATES Advisory and management Double the assets under management to 20bn by

147 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Our ambition: become the leading insurer in France Savings/retirement Death & disability/ creditor/ group insurance Property & casualty Become the #1 life insurer in France and a major player in group pension plans Scale up the creditor insurance business Intensify the growth momentum in all customer segments Adapt the model abroad according to the local features of our international markets 147

148 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Become the #1 life insurer in France and a major player in group pension plans Savings: roll out our advisory approach Develop savings and investment solutions in synergy with the asset management and real estate business lines Increase the proportion of unit-linked contracts in our AuM given the low interest rate environment Implement assisted savings management methods: regular payments, discretionary, advisory or management support mandates Retirement: step up distribution of retirement solutions, both individual and group Accelerate growth in group retirement plans for large corporates in synergy with Amundi Develop the retirement business with banking clients: retirement plans for employees, the self-employed, etc. SAVINGS/RETIREMENT +10% in AuM from 2015 to bn 2015 CAGR +2,3% 285bn pts in the share of unit-linked contracts to reach ~25% 1/3 of mass-affluent clients equipped with discretionary/advisory mandates (France) Scope: world 148

149 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Scale up the creditor insurance business Creditor insurance: increase the magnitude of this business Insource group insurance contracts for the Regional Banks +~35% premium income 2 from death & disability, creditor and group insurance from 2015 to 2019 Individual death & disability Increase the penetration rate among our customers from 17% to 20% in 2020 in France Maintain our market share 1 of 18% in France Group health/death & disability insurance plans: strengthen our presence in this new market for the Group Become the partner of choice for SBF 120 companies and sell multiple products to the small business customers of our banking networks 3.0bn Group insurance Creditor insurance CAGR + 7.5% +3.7% + 8.1% Individual death & disability 4.0bn Scope: world Scope: Individual death & disability (excluding personal accident), creditor and group insurance (excluding retirement) 1. Market share in terms of premium income in 2015 in all term life, funeral and long-term care insurance markets 2. Under IFRS 149

150 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Property and Casualty: intensify the growth momentum in all customer segments Step up current business momentum: Individuals Target growth of 1.5 pt in market share in Car and Home 1 in France by selling insurance products to customers of the Group's retail banks Small businesses and farmers In the small business segment, gain 2 pts in penetration rate in France by (from 5% to 7%) Equip 4 French farmers out of 10 with farm insurance in (vs 3 out of 10 in 2015) + ~27% premium income 4 from 2015 to bn CAGR +6.0% +10.7% +5.4% Small business/farmers 4.3bn Individuals + ~3 pts contribution of small businesses and farmers to premium income Scope: world Scope: Property & casualty, personal accident and health (excluding small business and farming group plans) 1. Market shares in number of policies, 2015 market shares : 6.2% in car and 9% in home 2. Share of French small businesses with at least 1 product in Crédit Agricole Group's entire insurance range 3. Share of French farmers with at least 2 products in Crédit Agricole Group's property & casualty insurance range 4. Under IFRS 150

151 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Our ambition: become the leading insurer in France COMMERCIAL TARGETS FINANCIAL TARGETS Savings Retirement Death & disability/ creditor group insurance Property & casualty +10% +5 pts growth in AuM growth in share of unit- ( 285bn in 2019) linked contracts in AuM +~35% growth in premium income from death & disability, creditor and group insurance ( 4bn in 2019) +~27% growth in property & casualty premium income ( 4.3bn in 2019) Contribution to the Group's revenues 1 ( bn) NIGS ( bn) Cost / income ratio pro forma % 30.2% 2019 > 6.0 CAGR: > 2.5% ~ 1.3 CAGR: > 5% <30% Combined ratio 95.8% 95.8% < 96% 1. Revenues + fees paid to our distributors 2. Pro forma : analytical transfer of Switch 2 guarantee to Insurance activity 151

152 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Our ambition: strengthen our leadership Retail: continue our development Institutionals: accelerate our growth Seek value-creating acquisitions 152

153 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Retail: continue our development THE REFERENCE PLAYER FOR RETAIL ASSET MANAGEMENT IN EUROPE AND ASIA Assets under management Customers French retail network International retail network Joint ventures Third-party distributors 2 Services Total 1 Solutions 3 Tools Preferred distributors Private banks and distributors working on an open architecture basis Access to 100 million retail customers worldwide (exclusing JVs) Solutions Local, tailor-made and dedicated offers Access to the overall Amundi expertise Cross-border flagship funds Services Local and dedicated teams Centralised Luxembourg servicing team for cross-border flagship funds 31/12/2015 CAGR bn 21bn 73bn 67bn 263bn -1.6% +12% +49% +16% +12.2% Tools Tailor-made and/or global roll-out of Amundi tools, compatible in all geographical areas Sharing of marketing best-practices across networks Take full advantage of the strength of our platform to: Capture a higher share of inflows from our partner networks by capitalising on market conditions and strengthening synergies with insurers Continue our expansion among third-party distributors, in France and abroad 1 Hors JVs 153

154 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Institutionals: step up our growth Sovereigns & Institutional Corporates A SOLID, DIVERSIFIED AND GROWING INSTITUTIONAL CLIENT BASE Institutional, corporate and employee savings schemes Amundi manages investment solutions for some 1,000 institutional clients: sovereigns, pension funds, insurers, other financial institutions, non-profits Assets under management 31/12/2015 CAGR bn 1 European leader in the corporate segment Liquidity Strong foothold in France (44.3% market share solutions ) Significant development in Europe excl. France and longterm assets Leveraging Treasury management expertise to develop management of long-term liabilities: real estate, social liabilities,... 87bn +13% Employee Unique expertise in employee savings savings Leader in France (~41% market share 3 ) plans Expertise leveraged across other European geographies/clients Sub-total 325bn +12% Crédit Agricole and Société Générale group insurers 4 Two historical core clients with a large and stable AuM base (Crédit Agricole Assurances in France and Italy and Sogécap) CA and SG Strong basis of expertise to be rolled out to develop business with Insurers other non Crédit Agricole and Société Générale group insurers 397bn +7% and other client segments +11% Institutionals & Sovereigns Continue our development by strengthening our expertise and our advisory capabilities Corporates Roll out our expertise in cash management and employee savings in the eurozone based on our unrivalled leading position in France Insurance Roll out our insurance expertise to Tier 2 insurers Total 722bn +8.7% 1. Including funds of funds 2. Source: Europerformance monthly report at December 2015 for EUR money market funds 3. Source: AFG at 30 June General account insurance mandates, excluding unit-linked 154

155 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Seek value-creating acquisitions Boost organic growth with external acquisitions offering major revenue enhancement and cost-savings opportunities, based on one or more of the following criteria: Recent external acquisitions Strengthen our management platform and broaden our scope of expertises and solutions (e.g.: Smith Breeden in the USA) Create new long-term distribution partnerships, based on obtaining control of an asset management company together with a distribution agreement with a network (e.g.: Bawag PSK Invest in Austria) Strengthen our geographical presence either in countries offering Amundi the opportunity to gain new market shares or in high-growth markets, particularly in Europe and Asia (e.g.: KAF in Malaysia) Adopt a flexible, opportunistic approach in terms of acquisitions Majority or minority interests; partnerships A highly disciplined approach in the analysis of each opportunity Seek significant value creation through cost or revenue synergies Maintain control over execution risks ROI 10% in 3 years 10% ROI in 3 years 155

156 3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Our ambition: strengthen our leadership COMMERCIAL TARGETS FINANCIAL TARGETS Retail Net inflows + 100bn in total over incl. 40bn from joint ventures Cost / income ratio (2019) < 55% Institutionals Net inflows + 60bn in total over mainly excluding mandates from Crédit Agricole and Société Générale insurance companies Net income CAGR + 5% p.a. Total Net inflows ~ 4% of AuM 1 p.a. on average over Excluding market and FX effects 156

157 KEY FINANCIAL TARGETS 2019 FINANCIAL TARGETS Sustained business momentum while ensuring growth in the business line's already high profitability Business indicator Asset gathering (including CA Indosuez WM, excluding CA Immobilier) of which Insurance 1 285bn (AuM, end-2019) of which Asset management 160bn (net inflows, ) Revenues CAGR > +3% p.a. > +4% p.a. ~ +3% p.a. NIGS CAGR > +5% p.a. > +5% p.a. ~ +5% p.a. 2 Cost / income ratio (2019) <45% <30% <55% RoNE (2019) >25% 2 >22% 2 >30% 2 1. Pro forma : analytical transfer of Switch 2 guarantee to Insurance activity 2. RoNE calculated on the basis of a capital allocation tailored to the needs and risks of each business line 3. Pro forma : Crédit Agricole S.A. share in Amundi of 74.2% in

158 CHAPTER 4 BUSINESS LINE STRATEGY

159 WELL-POSITIONED TO CAPTURE MARKET GROWTH STRATEGIC POSITIONING MTP ACHIEVEMENTS 110bn 1 in assets under management A wealth management activity in France mainly serving customers of the Regional Banks A historically strong presence in Europe An international network in growth areas with high wealth concentration, particularly in Asia and Latin America A capital-light business that brings liquidity to the Group A global product and service offer tailored to the needs of our HNWI clientèle A high-performance shared IT platform AuM target achieved a year ahead of schedule + 8% p.a. AuM in 2014 and 2015 (on average) 5.7bn net inflows from end 2013 to end 2015 Consolidation of European domestic network Creation of an Italian branch at year-end 2014 Commercial teams strengthened Implementation of a cost control plan Cost savings reinvested in organic growth Controlled evolution in cost/income ratio 1. Excluding LCL Private Banking assets (~ 40bn), assets held by Regional Banks and private banking activities in international retail banking pt in cost/income ratio from end 2013 to end 2015 excluding SRF impact 159

160 CONSOLIDATE OUR POSITION AS ONE OF THE EUROPEAN LEADERS IN WEALTH MANAGEMENT KEY STRATEGIC PRIORITIES Provide an all-encompassing approach to wealth management, to meet both the business and personal needs of our customers Enhance our offer in synergy with the Group's business lines (corporate finance, complex financing, etc.) Accelerate growth in prioritised geographical areas Step up synergies with the Group's distribution networks (France and Italy) Accelerate organic growth by focusing our business on the higher net worth segment, while observing the highest compliance standards Review opportunities for targeted acquisitions 3bn average net inflows p.a. over ~75% cost/income ratio in 2019 (- 3 points vs 2015) Invest to improve performance and better serve our customers Upgrade our information systems and turn the digital corner Complete the migration of our entities on the shared IT platform +10% p.a. growth in net income Group share from 2015 to

161 CHAPTER 4 BUSINESS LINE STRATEGY LARGE CUSTOMERS

162 CIB: GLOBAL BUSINESSES WITH A STRONG EUROPEAN FOCUS 2015 business revenues 1 ( 4.1bn) by region ~30% 2 ~30% ~20% < 5% ~15% x % Breakdown of business revenues on a coverage basis Regional platform Branch, subsidiary or representative office About 60% of CACIB's business revenues come from France and other European countries 1. Revenues generated from customers covered by the various CACIB units; 2. Excluding revenues generated with Crédit Agricole Group 162

163 ASSET SERVICING: AMONG THE PLAYERS WITH AN EUROPEAN FOOTPRINT A leader in France and Europe CACEIS European presence Assets under custody: 2,327bn at end 2015 Funds under administration: 1,477bn at end 2015 Historical presence New depository banks A full service offering Operational efficiency demonstrated by stringent cost control + 0.5% on average in Significant and recurring liquidity contribution for the Group European expansion through organic growth: creation of depository banks, growth in fund administration in Germany, etc. Supported by a presence in the USA, Canada and Asia 1. Excluding taxes and levies, of which SRF 163

164 CIB: DELIVERED PERFORMANCES MTP: activities growth in line with targets Revenues ( bn) 1 resulting in a ~32% increase in underlying net income Group share between 2013 and 2015 NIGS ( bn) 1,2 MTP Target +3% +3% Reported % +5% % Financing activities 2014 Capital markets and investment banking 2015 Strong CIB revenue growth in 2014 and 2015, beyond the growth target of +3% p.a. set in the MTP Excellent performance in Capital markets and investment banking in 2015 (+11% vs 2014) Growth in NIGS supported by cost control (~+0.7% p.a. over the period excluding FX effect and SRF) and improved operational efficiency Successful cost cutting programme in support functions and country/business exits Increased outsourcing E.g.: IT partnership with Genpact at end 2013 CACIB has restored its ability to generate steady, recurring net income Group share and 2014 data restated for changes of accounting method related to IFRS 10 and 11, loan hedges, FVA/CVA/DVA impacts and disposal of brokers, and based on the analytical reallocation of discontinuing activities and transfer of SFS (Structured and Financial Solutions) to Investment banking data restated for loan hedges, DVA running and additional OFAC provision 164

165 ASSET SERVICING: GOOD MOMENTUM IN AN ENVIRONMENT OF LOW INTEREST RATES AND REGULATORY CHANGES MTP achievements : healthy fundamentals with strong recurring revenues and well controlled costs Fee income ( m) net of correspondent costs +5% Costs ( m) excluding taxes and levies (of which SRF) +1% Sustained growth in fee income in all activities reinforced by a broader product offer (execution and clearing of listed derivatives, private equity and real estate funds) and expansion in Europe through organic growth Decrease in interest margins in 2014 and 2015 vs 2013 in a extremely unfavourable interest rate environment Ability to create value is supported by strict cost control (~ +0.5% p.a. over the period excluding taxes and levies, of which SFR) and continued improvement in operational efficiency Successful cost cutting programme in IT: renegotiation of the contract regarding the production and transfer of infrastructure Pooling of operational production centres completed or in progress for all services: custody, execution and clearing 165

166 BUSINESS CUSTOMER STRATEGY FINANCIAL INSTITUTIONS STRUCTURED FINANCE MID-CORPS 1 CORPORATES Reinforce the weight of financial institutions Maintain leadership in structured finance Strengthen the support to the development of the mid-corp segment Selective focus on growth in Corporate segment Expand the customer base, particularly among asset managers, private equity, insurance companies Develop flow and investment products Continue to expand the product offering in Asset servicing Consolidate a worldwide leader position 1 Increase cross selling While keeping control over scarce resources Provide a full range of CIB products and services Streamline back office processes Use the Group's full financing strength Coordinate all Group business lines in the mid-corp market Develop the customer base very selectively Strengthen the most profitable relationships 1. Mainly in aircraft finance, project finance and ECA financing, etc. 166

167 BUSINESS LINE STRATEGY Rebalancing expert services that already exists and a strengthening of industrial service offer A comprehensive CACIB/CACEIS offering based on two complementary pillars EXPERT SERVICES "Spread existing expertise to strengthen the product offering" Financing activities Capital markets and investment banking Asset servicing Project finance Asset finance Investment fund finance Acquisition finance International trade finance Equity corporate/equity derivatives finance Investment banking (M&A, ECM) Securitisation Complex derivatives/investment products Primary bonds/credit Private equity fund services Value-added reporting (e.g. risks, Fatca, IFRS 9, AIFM) INDUSTRIAL SERVICES "Accelerate these businesses in the mediumterm by improving our competitiveness" Financing activities Capital markets and investment banking Asset servicing Cash management Supply chain finance Develop multi-class asset e-business (FX, fixedincome, government bonds) Continue to expand the product and service range for customers: execution, clearing, securities lending/borrowing, reporting services Investments scheduled in the plan to support the expansion of all services 167

168 REVENUE GROWTH OF ~ +2% P.A. OVER THE PERIOD OF THE PLAN Structured finance: maintain the current momentum in Coverage and synergies with CACEIS Revenues ( bn) CAGR Financing activities International trade and transaction banking: unify international trade businesses and invest in transaction banking Debt optimisation and distribution: expand acquisition finance and advisory 1 and maintain our excellence in distribution ~ +2% FA + 1.4% Capital markets and investment activities Asset servicing Expand the Investors customer base in flow and structured products, and continue to stimulate FX business Internationalise the Investment banking business Strengthen financial institutions customer base Continue to develop the product offering (private equity and real estate funds, listed derivatives clearing and execution, etc.) Strengthen commercial synergies with CIB Accelerate the increase of new operations in Europe CM&IA % AS + 2% Structured finance Commercial banking and other 2 Capital markets and investment banking (CM&IA) Asset servicing (AS) 1. Rating and working capital optimisation advisory services 2. Including distressed assets 168

169 FINANCING ACTIVITIES: TARGET REVENUES OF ~ 2.3BN I.E. A CAGR OF ~ +1.4% FROM 2015 TO 2019 Financing activities Efficient growth Structured finance: a leadership position Recognised expertise in distribution and origination International trade: confirmed expertise Structured finance Maintain our leadership" World # 1 Bookrunner Aircraft finance 1 in Bank of the Year 2015 Americas (Project Finance International) World # 6 Arranger Project Finance in volume 2 Best Infrastructure House, Transport Finance House of the Year # 2 in France Syndication activities 2 # 2 in Euro PP 12% market share in World # 4 Arranger of ECA guaranteed financing 4 # 1 Trade Finance bank in Western Europe in Preserve high profitability level, ensure stable and recurring revenues Enhance the role of Coverage and maximise business mix with our customers Strengthen synergies with the Group, and particularly with CACEIS 6 Debt optimisation and distribution "A global credit expert serving the Bank" Develop Corporate acquisition finance to optimise balance sheet use Maintain our position of excellence in distribution Accelerate development in advisory activities International trade and transaction banking "A key service for Corporate customers" Support growth in international trade 7 Secure and transform the cash management offer Launch a supply chain finance offer and working capital optimisation advisory Develop synergies with the rest of Crédit Agricole Group Promote our high standards compliance and financial security 1. Source: Air Finance Journal, July Source: Thomson Financial 2015; 3. Source: Dealogic European Private Placement Bookrunner Full Year 2015; 4. Export Credit Agencies, source: Dealogic at 31/12/2015, excluding aircraft and ship finance; 5. Source: Global Trade Review; 6. Securitisation, Private Equity; 7. According to market opportunities and constraints 169

170 CAPITAL MARKETS AND INVESTMENT BANKING: TARGET REVENUES OF ~ 2.4BN I.E. A CAGR OF ~ +3.8% BETWEEN 2015 AND 2019 Banque Capital markets de marché and et investment d'investissement banking La poursuite Continued du growth schéma momentum de croissance Capital markets activities: a recognised commercial position Investment banking: at the heart of strategic discussions with our customers Strengthen the product and service offering for the Group and the intermediate-sized entreprise segment Expand the Investor customer base to improve profitability Optimise the Corporate customer base Continue to develop e-business 5 Improve productivity (commercial strengths and scarce resources) Further internationalise Investment banking revenues 1.5% market share in 2014, up vs (1.2%) 1 #1 bookrunner ABCP securitisation Europe 2 #1 bookrunner Green and Sustainable Bonds World 3 #7 in France bookrunner Global Equity 4 #9 in France Advisory M&A 4 Develop capital markets and bond origination with the corporate customers of the Group's retail banks Synergies with CACEIS Strengthen industrial services, with a focus on FX Reinforce the range of structured products Provide new impetus to primary corporate EUR bond activity Step up securitisation and FX activities Reach the best market standards in our e-business with customers Increase productivity gains Optimise scarce resources (RWAs, liquidity, balance sheet footprint) Support our customers in their cross-border transactions Further diversify activities and revenues of the business Strengthen CACIB's ECM and M&A activities in the USA 1. Source: Oliver Wyman, July 2015; 2. Source: CPWare 2015; 3. Source: CACIB/market data; 4. Source: Thomson Financial at 31 December 2015; 5. Cross-cutting with the first three 170

171 ASSET SERVICING: TARGET REVENUES OF ~ 800M I.E. A CAGR OF ~ +2% BETWEEN 2015 AND 2019 Asset servicing Broaden the offer and synergies with CACIB Confirm our position as a leading player in Europe Strengthen development synergies in the new Large Customers business Private Equity, Real Estate and Securitisation (PERES) Joint commercial approach between CACIB and CACEIS for large institutional customers Harness financial synergies Broaden the product offer Optimise CACIB's and CACEIS' balance sheets Optimise RWAs to significantly improve RoNE Financing and middle office activities for PERES customers Clearing and execution of listed derivatives: develop the range of services Securities lending/borrowing: develop the Agency Model and optimise collateral management Continue to expand geographically Accelerate the increase of new CACEIS operations Review consolidation opportunities Improve operational efficiency Through strict cost control And continued shift towards shared operational production centres 171

172 PROACTIVE OPTIMISATION OF RWAS AND COST BASE TO OFFSET IMPACTS OF NEW REGULATORY REQUIREMENTS Proactive optimisation of RWAs Selective review of CACIB client portfolio to free up 10bn of RWAs (out of a total reduction of 12bn) Accelerate growth in flow products and rebalance customer mix towards institutionals Optimisation of models and financial management Change in RWAs between 2015 and 2019 ( bn) Operational efficiency plan Investments to converge CACIB and CASA information systems and reduce the run the bank IT costs Actions to simplify structures and pool resources In asset servicing, continued shift towards shared operational production centres ~ 230m p.a RWAs New regulations Portfolio review & other optimisation measures Organic growth FX effect RWAs of recurring cost savings by 2019 to be reinvested in developing industrial and flow activities 1. Quantifiable at this stage (fundamental review of the trading book, low default portfolio, new prudential treatment of securitisation, revision of internal credit and market risk models) 172

173 SUSTAINED GROWTH IN PROFITABILITY 2019 FINANCIAL TARGETS target Revenues 5.0bn ~ +2% p.a. 1 Steady growth in revenues both for CACIB and CACEIS Costs -3.1bn ~ 0% p.a. 1 RWAs 132bn 134bn Strict cost control both within CACIB and CACEIS Active management of scarce resources to offset the impact of new regulatory standards Cost/ income ratio 63% < 60% Sharp improvement in cost/income ratios RoNE 9.4% > 11% RoNE up in all entities A RoNE > 11% in 2019, post-impact of expected regulations 2 N.B.: targets at current exchange rates 1. CAGR on 2015 baseline; 2. Quantifiable at this stage 173

174 SUMMARY LARGE CUSTOMERS A new business line bringing synergies Solid commercial position and client mix rebalanced towards financial institutions Low-risk strategy Efficient management of new regulatory constraints that will impact CIBs (~ 12bn of RWAs in 2019 related to increased regulatory pressure 1 for CACIB) Highly proactive action on scarce resources and cost base 1. On CIB scope, baseline of 120bn 174

175 CHAPTER 4 BUSINESS LINE STRATEGY SPECIALISED FINANCIAL SERVICES

176 SPECIALISED FINANCIAL SERVICES Activities in synergy with the Group, with their own growth dynamics Activities that have significantly adjusted in the past A selective boast in growth Improvement in profitability thanks to cost cutting efforts and the adaptation of the model to capital and liquidity constraints 176

177 CHAPTER 4 BUSINESS LINE STRATEGY CACF

178 CACF: FIRST CLASS EUROPEAN PLAYER Operations in 21 countries, with 93% of the managed loan book in Europe 71.2bn managed loan book at end 2015 CACF Netherlands 2.7bn CreditPlus Bank 2.6bn 3 car finance joint ventures 17.2bn CACF France 25.8bn 2.8bn Credibom 1.1bn Wafasalaf 2.5bn Agos 15.2bn 1.0bn 178

179 DIVERSIFIED MARKETS AND BUSINESS MODELS Direct channel Distribution through CA Group retail banks Car finance joint ventures and partnerships Autres partenariats : Partnerships in consumer goods Financial institutions 179