NATIXIS INVESTOR DAY London

Transcription

NATIXIS INVESTOR DAY
London
November 14, 2013
AGENDA
9:00
–
10:00 a.m.
Laurent Mignon
Jean Cheval
Introduction
& Strategic plan presentation
10:15
–
10:35 a.m.
Pierre Servant
Investment Solutions
Strategic Vision
10:35
–
10:55 a.m.
Gils Berrous
Specialized Financial
Services Strategic Vision
10:55 a.m.
–
11:15 p.m.
Olivier Perquel
Marc Vincent
Wholesale Banking
Strategic Vision
11:15
–
12:15 p.m.
Laurent Mignon
Conclusion and Q&A session
NATIXIS INVESTOR DAY London November 14, 2013
12:15
–
12:50 p.m.
François Pérol
Morning closing: Natixis within
Groupe BPCE
Presentation and Q&A session
1:50
–
2:35 p.m.
Gils Berrous
Pierre Servant
Frédéric Chenot
Catherine
Halberstadt
Alain Denizot
Round table discussion
“Natixis and Groupe BPCE
networks”
2:35
–
3:20 p.m.
Pierre Servant
John Hailer
Pascal Voisin
“NGAM multi-boutique
structure”
3:20
–
4:05 p.m.
Olivier Perquel
Pierre Debray
Christophe Lanne
Luc François
“Originate to Distribute”
4:05
–
4:15 p.m.
Laurent Mignon
Conclusion
François
Pérol
Chairman of the
Management Board,
Groupe BPCE
Chairman of the Board
of Directors, Natixis
Laurent
Mignon
Chief Executive Officer,
Natixis
Pierre
Debray
Head
of Structured
& Asset Finance
Wholesale Banking
Division, Natixis
Alain
Denizot
Chairman of the
Management Board
of Caisse d’Epargne
Nord France Europe
Olivier
Perquel
Christophe
Lanne
Head of Global
Portfolio Management
& Transaction Banking
Wholesale Banking Division,
Natixis
Head of Financing
& Global Markets
Natixis
* Natixis Global Asset Management / ** Natixis Asset Management
Gils
Berrous
Head of Specialized
Financial Services
Division, Natixis
Luc
François
Head of Global Markets
Natixis
Pierre
Servant
Head of Investment
Solutions Division,
Natixis
Frédéric
Chenot
Chief Executive Officer
of Natixis Financement,
Services Division
John
Hailer
President
and CEO of NGAM*
The Americas & Asia
Natixis
Marc
Vincent
Head of Coverage
& Advisory
Natixis
Jean
Cheval
Head of Finance
and Risks, Natixis
Catherine
Halberstadt
Chief Executive Officer
of Banque Populaire
du Massif Central
Pascal
Voisin
Chief Executive
Officer of NAM**,
Natixis
Disclaimer
This media release may contain objectives and comments relating to the objectives
and strategy of Natixis. Any such objectives inherently depend on assumptions, project
considerations, objectives and expectations linked to future and uncertain events,
transactions, products and services as well as suppositions regarding future
performances and synergies.
No assurance can be given that such objectives will be realized and the figures herein
cannot be considered as guidances. They are subject to inherent risks and uncertainties
and are based on assumptions relating to Natixis, its subsidiaries and associates,
and the business development thereof; trends in the sector; future acquisitions
and investments; macroeconomic conditions and conditions in Natixis' principal local
markets; competition and regulation. Occurrence of such events is not certain,
and outcomes may prove different from current expectations, significantly affecting
expected results. Actual results may differ significantly from those implied by such
objectives.
Information in this media release relating to parties other than Natixis or taken
from external sources has not been subject to independent verification, and Natixis
makes no warranty as to the accuracy, fairness or completeness of the information
or opinions herein. Neither Natixis nor its representatives shall be liable for any errors
or omissions or for any harm resulting from the use of this media release, its contents
or any document or information referred to herein. Figures in this presentation
are unaudited. Targets are based on current regulatory and accounting environment.
4
Introduction
& Strategic plan
presentation
Laurent Mignon
Jean Cheval
Contents
1
2
2009-2013
Successful
delivery
2014-2017
Strategic
plan
3
Financial
targets
6
The rationale
Natixis is the corporate, investment management and financial services arm
of Groupe BPCE, developing the strategic group business lines that require either
critical mass, specific expertise or international scope
Our aim is to be:
a premier asset gatherer with global aspirations and a robust balance sheet
a fully client-centric bank, solution oriented with a very disciplined risk policy, and strict liquidity
and capital management
Our mission
Strategic fit with Groupe BPCE
Natixis serves large corporates
and institutional clients that require
tailor-made banking and investment solutions
Part of Natixis’ growth potential, especially
in SFS and Investment Solutions, is directly
linked to Groupe BPCE’s ambitions
Natixis provides Groupe BPCE’s regional
banks with a full range of products
and services designed to the highest market
standards
Natixis benefits from Groupe BPCE’s funding
capacity and capital strength
7
Natixis: core to Groupe BPCE, the 2nd largest banking group
in France
Guaranty on workout portfolio
GAPC – risk profile reduction
2012 net revenues(1)
€22.5 bn
2012 net income(1)
P3CI transaction – Improvement in solvency
€2.8 bn
Basel 3
Service provider for the networks
(Investment Solutions, SFS)
CET1(2)
as of end-Sept 2013
Synergies of revenues: €817m generated
as of end-September 2013
9.9 %
Ratings(3)
S&P:
A
Moody’s:
A2
Fitch:
A
Single treasury platform
with the two signatures
20% of 2012 Natixis’ net revenues generated with the BPCE networks
Natixis core businesses contribute for 32% to Groupe BPCE pre-tax profit in 2012
(1) Excluding non-operating items
(2) Estimate – CRR/CRD4, as applied by Groupe BPCE; without transitional measures, after restating for DTAs
(3) Long term rating – As of October 2013
8
Successful delivery of New Deal plan
Profitable refocusing
on 3 core businesses
CET1 ratio(1)
Net revenues(2)
in €bn
166
17 successive quarters
with positive net income;
~€6bn cumulative
net income since 3Q09
~10%
148
6.5
6.5
6.5
6.2
6.5%
From €51bn notional
value as of end-08 to
€10bn in GAPC
as of end-September 2013
43% and 50%
reduction in RWA
and liquidity needs
since end-08
Dynamic balance sheet
management(3) in €bn
95
74
End-08
Basel 2
End-13
Basel 3
2009 2010 2011 2012 2013
RWA
Liquidity needs
End 2008
End-Sept. 2013
Natixis’ transformation achieved in accordance with New Deal plan
(1) End-08 ratio: including new CCI prudential treatment as RWA – End-13 estimated ratio: Final Basel 3 impact will depend on final rules – Fully loaded except for DTAs - Net of BPCE guarantee
(2) Annual net revenues excl. FV adjustment on own debt and GAPC
(3) RWA: excluding CCI prudential treatment as RWA, excluding P3CI, CRD3 and 4 - Liquidity needs: LT and ST funding for Wholesale Banking and GAPC
9
Financial structure simplified and value creation
for shareholders
August 6, 2013:
Sale of the CCIs
Banques
19 Populaires
20%
CCI
~ €2bn exceptional
distribution to shareholders
August 19, 2013
50%
Caisses
17 d’Epargne
20%
CCI
Central
institution
Sale to Banques Populaires
and Caisses d’Epargne
of the CCIs held
by Natixis for ~ €12bn
Limited impact on 2012
pro forma net income
and improvement
in solvency
50%
71.8%
Natixis share price growth vs. STOXX 600 / banks, 01MAR09-08NOV13, in %
Natixis
STOXX 600 / banks
411%
97%
10
Natixis is on track for growth and value creation
Shareholders friendly dividend policy
with a 50% payout ratio target
Solid financial
structure
Groupe BPCE
Strong base
for growth
in our core
businesses
Wholesale
Banking
Investment
Solutions
Specialized
Financial
Services
Enabling Natixis
to catch
opportunities
Financial Investments
Client-oriented business model
to provide solutions and services for Natixis
and BPCE networks customers
Coface – successful restructuring
a pure player in credit-insurance
11
Contents
1
2
2009-2013
Successful
delivery
2014-2017
Strategic
plan
3
Financial
targets
12
Our ambitions for our 3 core businesses…
Return on capital allocated
Relative weight to 2017
core businesses pre-tax
profit - Target
16%
>16%
SFS
>15%
Investment
Solutions
14%
12%
X%
Return on capital
allocated – 2017 target
~12%
Wholesale
Banking
10%
8%
2
4
6
Capital allocated
Differentiated approaches for our core businesses
13
in €bn
…to reach a ~ 11.5-13% ROTE in 2017
Natixis’ Return On Tangible Equity
~ 11.5-13%
~ 9%
Capital
management
Cost
efficiency
and model
adaptation
Business
development
9M13 (1)
2017 target
(1) Pro forma of the sale of the CCIs – Excluding FV adjustment on own debt
14
Rebalance the capital allocation in favor of Investment
Solutions…
Capital management
Disposal of non-strategic
assets which have negative
impact on profitability
GAPC closing by mid-2014
Coface full-disposal during
the strategic plan
2013 capital allocation basis(1)
2017 target includes
Capital allocation
acquisitions hypothesis
oriented to profitable
in Asset Management
and liquidity light
business (Investment
businesses
Solutions)
6%
9%
13%
13%
2017 capital
allocation
target(1)
11%
58%
25%
37%
29%
49%
50%
Core businesses
Wholesale Banking
SFS
Financial Investments
GAPC
Dividend policy: payout ratio ≥ 50%
(1) Including goodwill and intangible assets
15
…with a priority to Asset Management and Insurance
Capital management
Excess capital allocated
to Asset Management
Target: excess
capital allocation for
~ €1.5bn acquisitions
2013 capital
allocation basis
Acquire new asset management
entities to expand the range
of expertise
8%
7%
Participate in consolidation
opportunity in Europe
Creation of J.V. in emerging
countries
29%
22%
Insurance
Grow the insurance platform
dedicated to retail networks
with BPCE Assurances projected
acquisition and new business with
Caisses d’Epargne starting
January 1st, 2016
2017 capital
allocation target
58%
50%
Core businesses
capital allocation(1)
13%
13%
Wholesale Banking
SFS
AM
Insurance & others
A more integrated “bancassureur” and a targeted acquisition policy in AM
16
Strong focus on cost management
Cost efficiency
9M13
CIR
Operational
Efficiency
Program
on track
in €m
69.6% NATIXIS
(1)
>100
101
56.9% Wholesale
Banking
>300
105
97
74.5% Investment
Solutions
9M13
completion
2017
CIR targets
2013 Target
2014 Target
~ 65%
completion
of the program
as of Sept 30, 2013
Resizing and streamlining some
activities
9M13 Wholesale
Banking fixed-expenses
~ 700 targeted jobs reduction
~ 55%
Operational excellence reinforcement
(Support functions, Back offices)
~ €100m restructuring costs accounted
in 4Q13
€100m additional reduction
in expenses by 2015
End-2014
cumulative
Target
NATIXIS(1)
Services
Cost reduction
66%
decreased by
4% vs. 9M12
2012
completion
Specialized
64.8% Financial
Wholesale
Banking
< 70%
Investment
Solutions
< 64%
(1) Excluding GAPC and FVA on own senior debt
17
Specialized
Financial
Services
Wholesale Banking: development with strict capital
and liquidity management
Model adaptation
Doing business with scarce-resources
consumption under control
Strict control of RWA in capital intensive
business
Re-deploy partly RWA towards Structured
financing and Fixed income
Develop business lines with low RWA
consumption (GSCS, Derivatives, Advisory)
Limited increase in liquidity consumption
during the strategic plan
2014-2017 stable
RWA target
O2D: a fully integrated chain
Enhance Structured financing underwriting
capacity
• Bigger day one underwriting allowed
by a more integrated organization
• Exclusive partnerships with long-term
investors
Net revenues growth driven by increasing fee
businesses
Increase in RoRWA
35% of net arrangement fees
in 2017 financing revenues
18
Reshaping the organization of Investment Solutions
in Europe, further optimization on SFS processes
Model adaptation
2014-2017
targets
Specialized Financial Services
Develop a new AM model in Europe
• Move to a multi-affiliates organization
• Become a real European player
by capitalizing on our existing
institutional coverage and with focused
initiatives in retail
Create a unified insurance platform
for BPCE networks
• Integrate BPCE Assurances
• In source over time Caisses d’Epargne
insurance business
Improve IT process with BPCE
retail networks
Payments
• 7 billion operations managed in 2012
• Project to create a single IT platform
for Groupe BPCE
Refinancing diversification
• Factoring: €1.1bn securitization
of commercial receivables
(3 years maturity)
• Project for Groupe BPCE consumer
credit securitization
€22bn cumulated net inflows in European
asset management business
Net revenues increase by + 10%
in insurance business per year
Improvement in CIR with a 2017 target
< 64%
Net revenues development with liquidity
needs and RWA slight increase
19
Additional growth with Groupe BPCE retail networks
Business development
€400m cumulative additional revenues generated with Groupe BPCE retail networks
from end-09 to end-13
Additional target of €400m from 2013 to 2017
Additional possibility to deploy
SFS offer with Groupe BPCE retail
clients
Groupe BPCE market share is still
low for those services
Wholesale Banking
Adapt offering and services
Build the insurance platform
for the group
Further deployment of Private
banking offering
Provide customized solutions
for retail networks corporate
clients
Cumulative additional revenues
End
2009
> €400m
€800m
End-Sept
2013
End
2017
Cumulative target
for 2017:
~ €800m
20
A solid international basis…
Wholesale Banking
Asset Management
Solid international set-up
(Capital market debt platform,
Structured financing range of expertise)
Strong client franchise in South EMEA
Nearly 40% of FTE deployed
in international areas
#13 asset manager worldwide
with €619bn AuM as of end-Sept 2013
Nearly half of total AuM managed
outside Europe
A global centralized distribution
platform with 650 FTE
Geographical net revenues breakdown
7%
19%
53%
47%
31%
France
EMEA
Americas
Asia-Pacific
Europe
US
69%
21%
(1)
(2)
(1) Geographical booking based on 2013 forecasts (2) Excluding Asia, holding and inter-area operation – Based on 9M13 figures
21
…with targeted developments
Wholesale Banking
Selective strengthening of our international platform
• America: renewed effort for Equity derivatives, opportunistic
development for FIC-T (LatAm, Canada…)
• EMEA: focus on Capital markets and Structured financing
• Asia: strengthen Trade finance and develop O2D
Target: around 50% of FTE in international areas
in 2017 (vs. nearly 40% in 2013)
Natixis core businesses’ geographical
net revenues breakdown
2014(1)
56%
France
International
44%
2017
target
49%
France
Pursue the development of our US platform ($150bn)
via investments in new expertise and access to new distribution channels
Reinforcement of our distribution in Asia, Middle East and LatAm
organically and through local partnerships
+ 500 FTE targeted in Investment Solutions, mainly overseas
International
51%
(1) Estimated
22
Contents
1
2
2009-2013
Successful
delivery
2014-2017
Strategic
plan
3
Financial
targets
23
The economic environment: a three speed recovery where
Europe is still lagging…
Stabilization
of financial markets
The spectrum of euro break-up
is behind us
US external funding declines
Euro zone
Deleveraging to continue
in the developed world
Household debt reduction cycle:
Europe vs. USA
Public debt stabilization at a high level
Rebalancing
of emerging-market growth
Higher production costs
Stronger domestic demand
End of the commodity super-cycle
USA
Emerging Countries
7.0%
Growth
Inflation
17
CAGR 14-17
4.5%
> 1.0%
4.0%
2.5%
China
Emerging Asia
excl. China
Middle East
- North Africa
Sluggish potential growth
(demography)
Problem of monetary policy
transmission to peripheral countries
Average – cyclically well ahead
of Europe
Effects of low energy prices
(Oil and Gas supply shock)
Growth to slow markedly,
but remain at a sustained pace
and also more volatile
2% - under control
Accommodative monetary
policy, very low ST rates
2% - under control
Monetary policy to gradually
and prudently turn restrictive
(as from 2014)
Large volatility of financial markets
and exchange rates
24
…but it will not hinder our own development
Our development will focus on clients/business lines which will register significant growth in the future
Wholesale Banking
FIC-T
• Bond originations
- Expected refinancing 2014-2017 in Europe
=> €3.2 trillion (Source: S&P Capital IQ)
- Growing role of capital markets funding
for corporates in Europe
- Development of a Euro High Yield market
• Securitization
- A new take-off in Europe
=> Pursuit of European banks deleveraging
Structured financing
• Infrastructure finance
- Strong growth forecasted
- Infrastructure bonds
• Commodities
- World trade will continue to develop at 1.5/2x
the world GDP growth
• Acquisition & strategic finance
- A new wave of consolidation will take place in Europe
Asset management / Insurance / Private banking
• Growing needs of retirement scheme
• Strategic target development
for Groupe BPCE, a huge savings gatherer (€573bn)
• Become a true “ bancassureur ” (Groupe BPCE)
Asset management industry – anticipated CAGR
2014-2017:
• +5% USA
• +5% Europe
• +13% Asia (excl. Japan)
Potential market share gains to reach
the networks current ones:
• Factoring
• Consumer finance
25
The banking and financial environment for European banks
will continue to be challenging…
4 key constraints
The regulatory
environment
The necessary deleveraging
The forthcoming AQR
/stress test
USD liquidity access
Our beliefs for the
European industry
Our action plan
No sign of abating
Additional demands to be expected
Multiple layers of regulatory requirements
On track to fulfill all the ratios
French banking law:
no dedicated subsidiary for proprietary
trading activities
In spite of some efforts, still too high
a reliance on leverage
Euro zone banking system:
270% of GDP / US: 72%(1)
Leverage ratio > 3% as early
of end-June 2013(2)
Scope still to be precisely defined
We have quasi exited sectors/products
said to be targeted by the review:
legacy assets (GAPC), shipping
The lesson of 2011/2012: a necessary
reduction of European banks’ reliance
on the US MMF
Limited additional USD funding
requirement by 2017 < $5bn
Policy of USD diversification sources
(EETCs, MuniGIC, PP) in addition
of BPCE MLT funding
(1) ECB (2) Based on Natixis understanding of CRR-CRD4 rules / excluding DTAs
26
…but we are on track to fill all the regulatory ratios,
well ahead of the planned agenda
Now
2017 Targets
CET 1
9.9%(1)
9.5 - 10.5%
Total capital
12.7%(2)
~ 14 - 15%
Liquidity Coverage Ratio
Leverage ratio
> 3%(3)
fully loaded
> 100%
by January 2014
> 3%
Optimal use of scarce-resources
(1) Final Basel 3 impact will depend on final rules – Fully loaded except for DTAs - Net of BPCE guarantee (2) Excluding DTAs (3) Based on Natixis understanding of CRR-CRD4 rules / excluding DTAs
27
2017 Natixis financial ambitions
2017 Targets
Natixis totally refocused on its 3 core businesses
2017 targets based on organic growth
Stable revenues generation
Cost management: a 5pp gain
Normalized cost of risk
ROTE significant improvement
• Capital allocation rebalanced
• For Wholesale Banking RoE > CoE
Net revenues
> €8bn
CIR
~ 65%
Cost of risk
through the cycle
ROTE
~ 11.5 - 13%
~ 30-35bp
Dividend policy: payout ratio ≥ 50%
28
Wholesale Banking: business model transformation
to improve profitability
2017 ROE
2017 Targets
CoE
2013 ROE
Allocated
Capital
A four-pronged approach
Net revenues
CAGR
~ 5%
CIR
~ 55%
ROE
~ 12%
RWA
Stable
vs. 2013
Enhance O2D model
Improve share of wallet
Operational efficiency / streamlining
of some businesses
Selective growth of the international platforms
29
Investment Solutions: increase the relative weight
of the business
RoE
2017 Targets
based on organic growth
CoE
Allocated
Capital(1)
2013
2017
Become a more important AM player in the European
market
Net revenues
CAGR
~ 7-8%
AM Net New
Flows
+ €75bn
CIR
< 70%
ROE
> 15%
Pursue the development of our US platform
Expand profitability of our distribution organization
in new markets (Asia, LatAm, Middle East)
Create the insurance platform for Groupe BPCE
to become a fully fledged bancassureur
(1) Including potential external growth
30
Specialized Financial Services: additional synergies
with Groupe BPCE retail networks
RoE
2017 Targets
2017
2013
CoE
Allocated
Capital
Enhance revenue synergies with BP & CE networks
and reach Groupe BPCE market share for most
products (consumer finance, factoring, leasing,
employee benefits planning)
Contribute to increase the equipment rate
of BP & CE clients
Continue with our innovation and operational
efficiency strategy
Adjusted net
revenues CAGR
~ 3-4%
CIR
< 64%
ROE
> 16%
RWA
Slight increase
vs. 2013
31
London
November 14, 2013
Strategic Vision
Pierre Servant
Contents
1
2
3
Natixis
Investment
Solutions
Division
Focus
of Asset
Management
Focus
on Insurance
34
Investment Solutions division: 3 business lines
In €m
9M13
%/2012
1. Asset Management
Net revenues
ow Asset management
ow Insurance(1)
ow Private banking
CIR
Headcount
PBT
Allocated Equity(2)
ROE
1,619
+9%
1,321
189
87
+7%
+60%
+10%
74.5%
4,190
-0.8 pts
+4%
410
+10%
3,480
+0%
11.4%
+0.8 pts
A global player with €619bn of AuM managed
in Europe (> 50%) and in the US (< 50%)
2. Insurance(1)
A platform dedicated to BPCE networks managing
€39bn of Life insurance but also non Life insurance
(P&C, Creditor, Financial protection)
3. Private banking
€22bn managed by Banque Privée 1818
for direct clients, IFAs and BPCE networks
(1) Excluding BPCE Asssurances
35
Groupe BPCE and Natixis want to grow the Investment
Solutions division
1. Groupe BPCE french networks are powerful “asset gatherers”
in France with more than €573bn of savings
€390bn of on balance sheet deposits and savings
€183bn of long term/off balance sheet savings totaling ~ €700m
of commissions for the networks
2. Groupe BPCE’s ambition in “Bancassurance” has to be
supported by a more integrated Insurance Business Unit
to capture a bigger portion of the value chain
3. Investment Solutions businesses are profitable,
capital and liquidity light with sustainable organic growth capacity
4. AM is a source of diversification and internationalization
for the Group with a stand alone growth capacity and a proven
track record
36
Two solid growth engines generating an 8% CAGR
of revenues between 2009/2013 despite significant
headwinds
Net revenues €m(1)
1. Synergies with BPCE retail networks
in France (> 33% of our net revenues)
+ €0.6bn
+ 8%/year
2,065
1,789
2,158
1,890
(2)
NGAM, Natixis Assurances and Banque Privée 1818
provide investment solutions for each market
segment to Groupe BPCE networks
Together, they manage ~€180bn of off balance sheet
long term assets collected by Groupe BPCE networks
1,580
2. Growth of the international business of NGAM
More than 50% of revenues and total headcounts
of the division
Unique combination of well known alpha providers
and strong distribution platform
A multi-affiliate organization able to seize M&A
opportunities with limited execution risks
2009
2010
2011
2012
9M13
(1) Excluding BPCE Assurances
(2) Annualized
37
A new business environment full of challenges
but also opportunities as we adapt to the “new normal”…
Asset Management
Globalization of the business
Concentration of net flows around
a few mega AM players
“Secular” shift of client demand
Competition from passive product
Waves of new regulations
European captive AM have to adapt
to open architecture
Insurance
Private Banking
Competition from deposits
for mass retail clients
Competition from universal banks
and new intermediaries
Increase of capital intensity
of insurance businesses
for banking group
Clients in France are losing interest
in funds and risk
Solvency II revolution
Risk of fiscal change in France
Lower ROA
Tougher tax and compliance rules
Despite all those challenges and the increase of the cost of doing business,
the fundamentals of our businesses remain positive because
of demographic trends and the needs of retirement
But to grasp those opportunities, we will adapt our business models
and add scale to become more efficient
38
… allowing us to maintain our target of organic growth
(+8%) for the new plan based on our diversified
book of businesses
2017 NBI per activity (2013(1))
2017 Targets
based on organic growth
Net revenues
CAGR
~ 7-8%
Net New Flows
+ €75bn
CIR
< 70%
ROE
> 15%
Non Life Insurance
11%
(11%)
Life Insurance
7%
(6%)
Private Banking
5%
(5%)
AM US & Asia
56%
(54%)
AM Europe
21%
(24%)
An additional billion of revenue between 2013 and 2017(1) (~ 7-8%/year) coming
from a diversified organic growth (€0.8bn) and BPCE Assurances projected integration (€0.2bn)
Before acquisition, a fairly stable book of business except for the increase of the share of insurance
~4 points decrease of the CIR
Strong ROE and capital generation for the group (> 2bn in 4 years) before acquisition
(1) Including BPCE Assurances but without new premiums coming from CEP in Life insurance
39
Focus on Natixis Global Asset Management
A multi-affiliate model with a centralized
distribution platform adapted to each market
40
NGAM: a global and diversified asset manager with
€619bn AuM
Per Asset
classes
Money Market
€59bn (10%)
Real Estate
€33bn (5%)
Fixed Income
€338bn (54%)
Alternatives
& structured
€22bn (4%)
Per Management
center
A global asset manager
Europe
€319bn (51%)
US & Asia
€300bn (49%)
Equity
€167bn (27%)
Per
vehicle
Life Insurance
€173bn (28%)
Institutional
Mandates
€232bn (37%)
Open Funds
€186bn (30%)
Full range of € and $ expertise
to cover main AM markets
Excellent overall investment
performance
Per distribution
platform
Private Mandates
& Other
€29bn (5%)
Covering all the main asset
classes including real estate
and private equity
BPCE related
businesses
Life Insurance
28%
Broad and global client
franchise: institutional, large
distributors and retail clients
BPCE Retail
in France
4%
Centralized
distribution
Platform
31% (1)
Employee Saving
plans
3%
European
affiliates(1) (direct)
11%
USA & Asia
Affiliates (direct)
23%
Through a powerful global
distribution platform
Able to provide a full range
of vehicles (funds, mandates,
separate accounts...) adapted
to each regulation (UCITS,
US Mutual Funds, OEICS…)
(1) Post European Action Plan and including Money Market Funds for the French division.
41
A decentralized organization with a proven ability
to attract and retain talent
What is our value proposition?
1
Multi-affiliate
organization
Independent thinking
and entrepreneurial approach
2
A centralized
distribution
platform
Support for organic growth:
allows affiliated investment
managers to focus on investment
management, yet accessing
economies of scale
3
Compensation
plans
Fair long term alignment of interest
between NGAM and affiliated
investment managers
(with Equity like bonus plan)
4
Support for
innovation
(seed money)
Support for new products
and organic development
(€0.7bn of seed capital)
5
Global
Holding
Strong experience in acquisition
and regulatory oversight of affiliates
A flexible organization adapted
to each market
NGAM
Distribution
Global
Holding
25
Specialized
Affiliates
42
A multi-affiliate organization with a wide range
of expertise
Expertises
Loomis, Sayles & Co.
Credit (HY et IG)
Harris Associates
Equity Value
Aurora
FoHF
Gateway
Equity Hedged
AEW US and Europe
Real Estate
R&T Funds
MMF
Vaughan Nelson
Small/Mid cap
McDonnell
Municipals
Alpha Simplex
Quant/Alternative
NAM
Generalist
ow Mirova
SRI Expertise
ow Seeyond
Quans & Struct.
Vega IM
Wealth Management
H2O
Bonds
Insurance
Money
Markets
Fixed
Income
Equity
and diversified
Alternatives
and Real Estate
43
A multi-affiliate organization
with a centralized distribution platform
NGAM Distribution offers a centralized distribution platform dedicated to NGAM affiliates
with more than 650 FTE all over the world.
It is a single point of access to the affiliate line-up.
Boston
$260bn (31%)
of products distributed
through the centralized
distributed platform(1)
Oakland
Dubaï
260
International
U.S. Retail
118
90
32
135
150
39
49
97
101
25
65
2008
86
2009
2010
Stockholm
London
Amsterdam
Luxemburg
Frankfurt
Geneva/Zurich
Paris
Milan
Madrid
2011
177
110
2012
Tokyo
Hong Kong
Taipei
Singapore
Japan
15%
57
120
Rest
Australia of Asia
UK
5%
4%
China
14%
6%
Beijing
150
9M13
MENA
8%
France (3P)
39%
Sydney
Continental
Europe
9%
(1) Post European Action Plan and including $15bn of Money Market Funds for the French BDU
44
This organization has delivered a strong organic growth
and created value over the long term
45
NGAM distribution objectives for the next 4 years:
€75bn of Net New Flows
Cumulated net flows
forecasted 2014-2017
1
Pursue the development of our US retail platform
($150bn as of Sept. 2013)
+ €24bn
2
Become a more important player
in the European market in the 3P Business
+ €22bn
3
Expand profitability of our distribution
organization in new markets (Asia, LatAM, Middle
East)
+ €7bn
4
Direct distribution by our affiliates in France
and in the US
+ €22bn
€53bn of targeted
Net New Flows
through the
centralized platform:
NGAM Distribution
46
Our net flows objectives are consistent with the major
trends of the global asset management industry
Europe: $24tn
36% / 5%
Global Market
$67tn / + 6%
USA: $29tn
44% / 5%
30%
$7tn
70%
40%
$12tn
Japan: $4tn
6% / 3%
Asia (excl. Japan): $3tn
6% / 13%
45%
60%
Retail (Mutual Funds)
Institutionnels
ROW: $4.4tn
7% / 9%
% of Global Market
CAGR 2012-2017
88%
55%
Australia: $1.8tn
3% / 9%
33%
67%
50%
50%
(1) Survey Global Markets Cerulli 2013 – data end of 2012
12%
47
Natixis Assurances
A platform able to provide BPCE’s retail networks
with a full range of insurance products and generating value
for Natixis and the networks
48
BPCE Assurances acquisition: a new step in the
construction of a more integrated bancassurance platform
BPCE
Assurances
at a glance
Envisaged
transaction
between
Natixis
and BPCE
Created in 2002 by the Caisse d’Epargne
BPCE Assurances is dedicated to P&C products for the Caisse d’Epargne Retail network
A JV (60%-40%) with MACIF/MAIF two French significant players in the P&C segment
2.6 million contracts and €0.6bn of Gross Premium (Motor vehicle, Home Insurance,
Health and Personal Protection)
Net revenue 2013(1): €200m, PBT(1): €62m
Acquisition in cash of 60% of BPCE Assurances
MoU signed between parties on November 7th, 2013
Existing agreements with BPCE and MACIF/MAIF to be maintained
Due diligence and Fairness opinion will be completed
Execution of the transaction expected in Q1 2014
(1) Estimated figures
49
In 2016, Natixis will become the single insurance services
provider for BPCE networks
PRODUCTS
FRENCH RETAIL NETWORKS
Caisses
d’Epargne
Banques
Populaires
Life
Insurance
CNP is the current exclusive provider
for Life Insurance(1)
Natixis
Assurances
Creditor
Insurance
CNP is the current exclusive provider
but since 2007, Natixis is Co-insurer(1)
Natixis
Assurances
Personal
protection
CNP is a provider for Personal protection
solutions(1) alongside with BPCE Assurances
Natixis
Assurances
BPCE Assurances(2)
Natixis Assurances
through a JV with Macif & Maif
(60-40)
through a JV with Maaf
Assurances(50-50)
Property
and Casualty
(1) Current agreements will end up in 2016
(2) Natixis will integrate BPCE Assurances after regulatory approvals and agreements from Worker Councils during Q1 2014
50
Groupe BPCE’s bancassurance ambition
A strong growth potential for Natixis
Life
Insurance
Non Life
Insurance
Cautious projections in term of AuM (€39bn as of Sept 2013): + 3% per year
with a smooth recovery in term of flows
Distribution agreement limited to the BP networks until 2015 and including CE in 2016
Increase of Unit-linked product for Affluent and Private bank client
Net revenues’ projections for 2017: + 10% per year (margin improvement)
Integration of BPCE Assurances in the Investment Solutions Division (expected Q1 2014)
Strong growth in the Creditor and Personal insurance: net revenues CAGR > 10%/year
Groupe BPCE aims to be the insurer of one third of its current client
base before the end of 2017
Strong and diversified growth of the net revenues: + 10%/year
A CIR at 50%
A profitable business line even without the Danish compromise
51
Conclusion
We are confident in our ability to grow organically
and deliver this plan in a normalized business environment
thanks to the investments we made since the crisis
We are also ready to seize M&A opportunities
with limited execution risks because of our experience
of previous acquisitions
We will have the opportunity to dig deeper in AM
and insurance during the afternoon round tables
52
Industry-leading investment thinkers in key markets
globally
Europe
North America
1
Expertise: Index -based solutions
Founded: 2002
Headquarters: Oakland, CA
AUM: $445 M/ €342 M
Expertise: Value investments
Founded: 1976
Headquarters: Chicago, IL
AUM: $88.6 B/ €68.1 B
Expertise: Real estate investments
Founded: 1981
Headquarters: Boston, MA
AUM: $17.9 B/ €13.7 B
Expertise: Actively managed, researchdriven equity and fixed -income portfolios
Founded: 1926
AUM: $183.9 B/ €141.4 B
Expertise: Absolute return strategies
Founded: 1999
Headquarters: Cambridge, MA
AUM: $2.9 B/ €2.2 B
1
Expertise: Alternative investment
management
2
EUROPE
Expertise: Fund distribution solutions
Founded: 2002
Headquarters: Paris, France
3
Expertise: Overlay management
Founded: 2005
Headquarters: Oakland, CA
AUM: $10.1 B/ €7.8 B
Founded: 1988
Headquarters: Chicago, IL
AUM: $9.6 B/ €7.4 B
Expertise: Concentrated equity portfolios
Founded: 1990
AUM: $3.8 B/ €3.0 B
Expertise: Money market funds & cash
management services
Founded: 1970
Headquarters: New York, NY
AUM: $11.6 B/ €8.9 B
Expertise: U.S. private equity
Founded: 2008
Headquarters: New York, NY
AUM: $1.0 B/ €850 M
Expertise: U.S. small - and mid -cap value
investments
Founded: 1984
Headquarters: San Francisco, CA
AUM: $2.0 B/ €1.5 B
Expertise: Hedged equity strategies
Founded: 1977
Headquarters: Cincinnati, OH
AUM: $11.8 B/ €9.1 B
Expertise: Value equity investments
Founded: 1970
Headquarters: Houston, TX
AUM: $8.1 B/ €6.2 B
Founded: 2004
Expertise: Flexible management
Founded: 1993
Expertise: Alternative global fixed
and global macro management
Founded: 2010
Headquarters: London, UK
AUM: $2.5 B/ €2.0 B
Founded: 2012
Expertise: European multi -strategy
Founded: 1984
AUM: $372.1 B/ €286.2 B
Expertise: ETFs & quantitative strategies
Founded: 2009
AUM: $1.1 B/ €859 M
Asia
4
-income
Expertise: Responsible investment
solutions
4
Expertise: Global/int’l investments
Founded: 1994
Headquarters: Ft. Lauderdale, FL
AUM: $4.2 B/ €3.2 B
Founded: 1998
Headquarters: Singapore
AUM: $665 M/ €512 M
Expertise: Middle market, mature, PIPE,
and mezzanine investments
Founded: 2007
Headquarters: Luxembourg, Luxembourg
AUM: $1.1 B/ €846 M
Expertise: Customized hedge fund
solutions
Expertise: Fixed -Inc. specialist managing
taxable & tax - exempt bond portfolios
Founded: 2001 – leadership since 1987
Headquarters: Oak Brook, IL
AUM: $12.5 B/ €9.6 B
Expertise: Asian & emerging Asian
equities
Expertise: European real estate
Founded: 2001
AUM: $23.2 B/ €17.8 B
Expertise: Indian equity and fixed
investments
Founded: 2000
Headquarters: Mumbai, India
AUM: $6.9 B/ €5.3 B
-income
5
Expertise: Volatility management and
structured product investments
Founded: 2012
Expertise: Specialist management solutions
Founded: 2012
AUM: $7.1 B/ €5.4 B
53
Services
Strategic Vision
Gils Berrous
SFS: expertise geared to serve Groupe BPCE networks
and Natixis’ clients
9M13 net revenues by business line
Securities services
56%
Factoring
10% 11%
Sureties and guarantees
10%
Payments
24%
€948m
10%
Employee benefits planning
15%
Leasing
20%
SPECIALIZED
FINANCING
FINANCIAL
SERVICES
44%
Consumer finance
Good balance between
Specialized financing and Financial services
55
SFS: core business lines for Groupe BPCE ambitions
Supplier of Specialized financing solutions and Financial
services to the networks (Banque Populaire and Caisse d’Epargne)
and Natixis’s clients
SFS is at the heart of the Groupe BPCE development strategy
An innovation culture of and operational efficiency geared
to preempt changes in the retail banking sphere
Proven expertise in pooling and industrializing banking
platforms consistent with the highest market practices
Value creation ability on regular basis and resilient
to economic cycles
56
SFS: extensive growth potential within the second-largest
banking group in France
19 Banques Populaires
Two major brands:
Banque Populaire and Caisse d’Epargne
8,000 branches in France(1)
17 Caisses d’Epargne
Over 30 million retail clients(1)
Over 1,500,000 professional clients(1)
Over 150,000 corporate clients(1)
(1) Source: Groupe BPCE
57
Strong synergies with the BP and CE, facilitated
by the SFS sales physical presence within the networks
Sustained growth, with staff deployed
according to the Group’s regional
organization
3,661 staff, including 2,539 in Paris
and 1,058 in the regions
Specialized financing
Factoring
Leasing
Consumer finance
Sureties & guarantees
Financial services
Payments
Securities services
58
Strong market shares and solid growth momentum
09/2010
09/2013
Rankings in France
+ 43%
#3
Factoring
Factored turnover (€bn)
22
15
+ 52%
Sureties
& guarantees
#1
Employee
benefits
planning
231
152
+ 39%
Consumer
finance
Leasing
Written premiums (€m)
#3
New production (€bn)
5.9
4.2
#4
+ 11%
#2
equipment real estate lease
#1
Employee savings planning account keeping
New production (€bn)
Payments
Payments processor
1.6
#2
Securities
services
1.8
#2
Retail custodian
Sources: ASF / Natixis
59
Steady increase in SFS’s net revenues earned
with the networks
€305m of additional net revenues earned with the networks
over 2009-2013, well above the initial target
2/3 of SFS’s net revenues
earned with the networks
and their clients in 2012
Initial target
€239m
€305m
€847m
€542m
2009
Additional net
revenues
2013
Direct
33%
Networks
67%
(1)
(1) 9M annualized
60
Strategic targets 2014-2017
Increase net revenues earned with both networks clients
(Banque Populaire, Caisse d’Epargne) and Natixis clients
Increase the clients equipment rate of SFS expertise
Fully implementation of our range of solutions into the networks
Continue with our innovation and operational efficiency strategy
Innovation: anticipate changes in client needs
Operational efficiency: proprietary, shared platforms consistent
with the best market practices
Expand, while controlling scarce-resources consumption
61
Increase net revenues with the networks: targets
Duplicate successes in each network
Factoring
Employee
benefits
planning
Current(1)
2017 Targets
Overall take-up for Pro
and SME(2) clients
BP: 7%
CE: 3%
BP: 9%
CE: 5%
Take-up of employee
savings planning
BP: Pro: 10%
Corp: 8%
CE: Pro: 6%
Corp: 5%
BP and CE:
Pro: 14%
Corp: 10%
Tap into the potential for saturating core clients
Securities
& guarantees
Take-up of Saccef individual
homebuyer guarantees
CE: > 75%
BP: < 10%
CE: > 75%
BP: < 50%
Consumer
finance
Consumer finance market share
equal to banking market share
in 2017
~ 13%
~ 17%
(1) Source: TB ASF / Natixis
(2) Active clients with client receivables >€10K or 10% of sales
62
Increase net revenues with the networks: resources
Strengthen sales team within the networks and homogenize
commercial presence and approach
Sales tools integrated into work stations of network sales staff
Consumer
finance
Izivente
Sales tool with credit scoring and dynamic expert
systems
Leasing
Front Lease
Equipment-leasing sales tool covering simulation
to contract printing
Employee
benefits
planning
Easiris
Three-way sales, with an employee benefits expert
(web call back)
63
Ambitious commercial targets for all activities
Leasing: new production
(€m)
Factoring: new contracts
+ 31%
Employee benefits planning:
corporate clients
+ 40%
+ 42%
+ 71%
+ 43%
+ 45%
2,683
3,444
2,041
2,455
67,328
1,719
1,197
2009
2013 (1)
95,693
2017
2009
46,465
2013 (1)
2017
2009
2013(1)
(1) Estimated
64
2017
Significant additional revenues with the networks
over the course of the plan
CAGR of 5% over 2013-2017, i.e. €172m of additional net revenues,
the bulk from Specialized financing
3/4 of SFS’s net revenues
earned with the networks
in 2017
€172m
€305m
€1,019m
Direct
26%
€847m
€542m
Networks
74%
2009
Additional
net
revenues
2013 (1)
Additional
net
revenues
2017
(1) Estimated
65
Consumer finance: continued momentum
6% CAGR in net revenues
during the plan
€68m
Growth in new production
(€bn)
€120m
€308m
+ 32%
€240m
+ 50%
€120m
5
2009
Additional
net
revenues
2013
(1)
Additional
net
revenues
2017
2009
11
8
2013
(1)
2017
(1) Estimated
66
Continue with our innovation and operational efficiency
strategy
Innovation: Anticipate changes in client needs and strengthen our culture of innovation
Payments
Leading French bank for prepaid card issuance with Prepaid Anywhere
• Best supplier of payment services at the Prepaid Awards 2012
Factoring
Assisting clients with their international development projects
• Multi-domestic offering
• Reverse factoring
Auto components
Factoring
Multi-domestic 8 countries
Potential turnover of €2.6bn
The only complete range of solutions for deferred remuneration
systems: Employee savings, Retirement savings, Employee
shareholding, Special payment vouchers
70 000 accounts savers
€200m AuM
67
Continue with our innovation and operational efficiency
strategy
Operational efficiency: proprietary, shared platforms consistent with the highest
market standards
Payments
Since 2006: JV with BNP Paribas to design a join
card payment software platform
7 billion
€95 billion
2011-2014: same software platform to process the cards
payments of Groupe BPCE
transactions
in 2012
exchanged
daily
Next stage: single software to process all other payments
Consumer finance
Since 2013: Development of a joint consumer finance
management platform with BNP Paribas Personal Finance
geared to bringing the whole of the value chain back in house
4.5 million
personal loan
and revolving credit accounts
68
Expand, while controlling our consumption
of scarce resources
Diversify and secure sources of financing
Factoring
First securitization of commercial receivables rated
triple A by Moody’s and Fitch
€1.1bn of liquidity over 3 years
Leasing
Securitization
Refinancing of medium-term notes
collateralized by a portfolio of real-estate leases
Consumer
finance
Projected securitization of Groupe BPCE
consumer finance portfolios
69
2017 targets: solid and improving performances
2017 Targets
RoE
2017
2013
Adjusted net
revenues CAGR
~ 3-4%
CIR
< 64%
Cost of risk
Stable
ROE
> 16%
RWA
Slight increase
vs. 2013
CoE
Allocated
Capital
Enhance revenue synergies with BP & CE networks
and reach Groupe BPCE market share for most
products (consumer finance, factoring, leasing,
employee benefits planning)
Contribute to increase the equipment rate
of BP & CE clients
Continue with our innovation and operational
efficiency strategy
Stable cost of risk due to strong knowledge
of BP and CE retail clients
70
Wholesale Banking
Strategic Vision
Olivier Perquel
Marc Vincent
Since 2009, refocus…
Subprime crisis
Sovereign debt crisis
Economic environment
Regulatory environment
Constraints: Solvency, Liquidity, Productivity
2009 “New Deal”, 2011 strategic adjustments
1,476
1,464
Deleveraging
and exit from
non-core activities
Exit from non-core activities (GAPC, Shipping,
Corporate Financing in Germany, refocus of the LBO
financing business on Europe)
+ 1%
B3 RWA
& revenues
85
Client-oriented
business model
1,371
Client focus enhanced
Cross-selling
Risk reduction. Exit from proprietary trading activities
- 9%
H1-12
Drastic reduction
in consumption
of scarce resources
O2D
RWA reduction program / models reliability
Liquidity optimization measures and mutualization
of long-term funding
76
77
H2-12
H1-13
Net revenues (€m)
RWA B3 (€bn)
Expenses
(in €m)
- 2%
864
Productivity
improvement
855
Two successive efficiency plans: adaptation plan (2011)
and PEO (2012)
846
H1-12
H2-12
72
H1-13
…and investment in key franchises
Revenues 9M-13
Financing Activities
Structured Finance
47%
Investment
35%
GEC
Structured Finance
AEI
Implementation of O2D
Creation of a Pfandbriefbank in Germany
REF
ASF
Commercial Banking
13%
Global Markets
Vanilla credit
GTB
Capital Markets
FICT
53%
38%
Creation of the Debt Platform
Development of FI in the US
Strengthening of the Global Markets platform in Asia
Trading
Coverage
Debt Platform
Commodities
Treasury
Equity Markets
14%
Cash Equity
Reengineering of Coverage
Improved cross-selling
Strengthening of Asian Coverage
Derivatives
Transverse
Investment Banking
ELF(1)
Coverage
Creation of EMEA platform
Improved risk control
Note: GEC: Global Energy and Commodities; AEI: Aircraft, Export & Infrastructure; REF: Real Estate Finance; ASF: Acquisition and Strategic Finance; GTB: Global Transaction Banking; ELF: Equity Linked Finance
(1) ELF: split between Equity Markets and Structured Finance
73
Focus on Natixis’ franchises
A leading player in Structured finance
Leading franchises for each business, either geographical or product
Sophisticated state of the art expertise
2012-2013(1)
2012-2013(1)
Global Energy
and
Commodities
Aircraft,
Export &
Infrastructure
Real Estate
Finance
2012(1)
Acquisition
and Strategic
Finance
Major structured finance expertise and quality relationships
in most regions
2013
Corporate Term Loan
& Bridge Loan Facility
USD 13,222,000,000 – Russia
MLA, Bookrunner
2013
Refinancing of existing
debt maturing in 2015
EUR 1,650,000,000 – Belgium
MLA, Bond manager, Bookrunner
2013
Club Deal
Credit Revolving Facility
EUR 750,000,000 – France
MLA
#3 MLA for Structured Commodity Finance (2012)
Best Trade Bank (Bronze category) in Metals and Mining (2013)
Internationally recognized franchises in Infrastructure
and Aircraft Finance
Aircraft Finance House of the Year (2012)
#1 MLA in France for PPP projects, concessions and public-service outsourcing (2013)
Leading market share in France, securitization
expertise in NY
Solid track record in France, international LBO finance expertise
and close relationship with PE funds
#6 MLA for LBO finance in EMEA and #1 French bank
#7 bookrunner for LBO financing in EMEA
2013
Acquisition financing
EUR 1,400,000,000 – Italy
M&A Advisor, MLA, Bookrunner
(1) Sources: Trade Finance Magazine – Dealogic / League tables for the trade finance market (in value); Trade & Forfaiting Review / TFR Excellence Awards 2013; Global Transport Finance, Awards 2012 - November 16, 2012; Magazine des Affaires - Grand
Prix Infrastructure - between January 2011 and June 2013 (in volume); Reuters, FY2012 as at Jan. 17, 2013 (in value); Reuters, League Table LBO 2012 (in value)
74
Focus on Natixis’ franchises
Debt Platform and Equity Derivatives
Debt Platform
A major player on € bond issues and an established franchise for GSCS
A global and integrated approach from origination to distribution
2013
Fleet Financing
EUR 550,000,000
Arranger, Senior Lender
2012
Catastrophe Bond
EUR 130,000,000
USD 60,000,000
Atlas Reinsurance VII
Joint Bookrunner
Debt Platform
DCM
Syndication
desk
Issuers
Sales
forces
Investors
GSCS
2013
2012(1)
Origination platform for loan
syndication, primary bond
market, securitization
Best euro lead manager for covered bonds: 2012, 2013
Best secondary loans house (2012)
#2 bookrunner on the euro primary bond market for financial institutions and French corporate issuers (2012)
#4 bookrunner – Global Structured Finance in Euros (2012)
Equity
Derivatives
2013(1)
2012(1)
Flow and structured derivatives for retail, institutional and corporate clients providing hedging,
investment and financing solutions with a wide product coverage
Existing franchise to be extended
New set-up on January 1, 2014
Strategic Equity: 2 Equity Lending awards recognizing Natixis as "Winner overall Group 2 Borrower" and "One to Watch Group
2 Borrower" on the equity markets in EMEA
Structured Equity Derivatives: best manufacturer in structured products for retail clients in France, #2 manufacturer in Equity structured
products in France, #3 manufacturer in hybrid structured products in France
(1) Sources: The Cover/Euroweek - Covered Bond Awards 2012; Euroweek, Syndicated loans and leveraged finance awards 2012; Dealogic (ranking based on unsecured senior debt, covered bonds, secured debt, subordinated debt and securitization); IFR;
Global Investor / ISF equity lending survey 2013; Structured Retail Products.com, Europe Structured Products Awards 2012
75
Worldwide presence beyond key home market
Domestic market: France, Spain, Italy
Reengineered Corporate Coverage
Dedicated FIPS and Financial Sponsor Coverage
Rationalized client portfolio
Upgraded product-neutral Coverage
Granular regional set-up targeting mid-cap corporates
International market: EMEA(2), Americas, Asia-Pacific
Selectively build on our key franchises: GEC, GIP, REF, Aircraft,
LBO, DCM, ELF etc.
America
EMEA(2)
Asia-Pacific
c. 550 staff
c. 530 staff
c. 430 staff
WB 2012 revenue by client category(1)
Moscow
London
C. 2,000 clients
Montreal
Madrid
Corporate
France
43%
FIPS
International
19%
Paris
Houston
Beijing
Mumbai
Subsidiary
Tokyo
Taipei
Hong Kong
Ho Chi Minh City
Labuan
Jakarta
Sao Paulo
Corporate
International
19%
Hanoi
Bangkok
Kuala Lumpur
Singapore
Lima
Branch & Subsidiary
Seoul
Shanghai
Dubai
FIPS France
19%
Almaty
New York
Mexico City
(1) Coveraged clients
(2) EMEA platform excludes France
Frankfurt
Milan
Istanbul
Johannesburg
Sydney
Buenos Aires
Branch
Marketing office
Representative office
76
The strategic plan
Selective growth and efficiency
Selective growth
Focus on efficiency
Development of key franchises with a clear
focus on international platforms…
Rationalization of Cash Equity, GTB(1),
Coverage in France
FIC-T, Structured Finance, Equity Derivatives
North and Latin America, Asia, EMEA Emergings
(Russia, Turkey, Middle East)
Optimization of liquidity and capital in line
with the new regulatory framework
… strengthened strategic dialogue
with corporate, FIPS and FSG clients
Operational efficiency
Strengthening of O2D, liquidity collection, RWA stability
Cost consciousness at all levels of management
Additional efficiency plans
IT systems reengineering and rationalization
(1) Global Transaction Banking (Trade Finance, Treasury Services)
77
The strategic plan
Ambitions
1
2
Revenue growth
Franchise development
International development:
CAGR 2014-2017: ~ 10%
Revenue CAGR:
~ 5%
Cost/Income ratio:
~ 55%
Repositioning /
Rationalization
GTB
Cash Equity
Coverage France
IT systems
Operational efficiency
2017 ROE
~ 12%
3
RWA stability
O2D
Continuing deleveraging
Risk control
78
1. Revenue growth focus
Structured Finance
Enhance O2D (higher underwritings thus improving client positioning / higher fees)
Improve client positioning (e.g. creation of FSG(1) Coverage, higher underwritings through O2D,
development of Capital Markets offer: HY)
Selective international focus (e.g. GEC, GIP, ASF)
Global Energy and Commodities
Increase market share in Commodity
Trade Finance
Upgrade relationships with large clients
in LatAm and Russia
Develop franchise in Asia
Expand in Africa, Middle East
Further develop cross-selling
Real Estate Finance
Europe: focus on generation of Natixis
Pfandbriefbank eligible loans, maintain
leadership in France
US: take advantage of improving market
to increase participation in securitization
market
Aircraft, Export & Infrastructure
Global Infrastructure & Projects:
build a global franchise, further expand
partnerships
Aircraft: focus on new funding tools
Structured Export Finance: develop new
refinancing tools, improve cross-selling
Expand Americas footprint
Acquisition and Strategic Finance
LBO: expand relationships with selected
key PE Funds into global business
(incl. Asia), with a major focus
on the US market
Corporate & Acquisition Finance:
focus on French (+Italy/Spain) Coverage
clients and GEC/Infra clients abroad
New production(2) (€bn)
~ 115%
of FY2012
new production
14.8
12.7
FY 2012
9M13
(1) FSG: Financial Sponsors Group (2) Perimeter: SAF O2D, new production including arrangement
79
Global Markets
FIC-T
Equity
Derivatives
Develop client base and improve geographical footprint
Uptier client franchise: AM, Public Institutions & Sovereign Funds, Insurance
Extend geographical footprint: Northern Europe, Middle East, Americas (LatAm, Canada) and Asia
Complete product offering in partnership with Wholesale Banking and Natixis
Improve franchise based on expertise in Strategic Equity and Structured Derivatives
Set-up upgrade (at sales level) in UK-US and Asia and increased productivity
Develop client portfolio, both in terms of clients (e.g. hedge funds) and geographical regions
Simplify product offering on Flow Trading (e.g. underlying securities)
Develop Strategic Equity Solutions and Fund Solutions
80
Selective international development
America
EMEA(1)
Asia-Pacific
CAGR 2014-2017: ~ 10%
CAGR 2014-2017: ~ 5%
CAGR 2014-2017: ~ 15%
Capitalize on franchise
and existing set-up
to further develop
Maintain and selectively
develop
Develop client franchise
Focus on Capital Markets
and Structured Finance
Enhance/optimize product offering
Italy/Spain: maintain our franchise
Opportunistic development
(LatAm, Canada)
Foster development in emerging
markets
Gain critical mass
Focus on core franchises
Strengthen Trade Finance
development
Implement O2D
Extend new investor base
Opportunistic coverage approach driven by core business franchises
(1) EMEA platform excluding France
81
2. Rationalization
Global
Transaction
Banking(1)
Rationalize and re-deploy
Develop client base, capitalizing on Coverage forces (systematic approach)
Selective international development of Trade Finance (Asia, Middle East, LatAm)
Enlarge the product range towards liquidity and account management
Cash Equity
Ongoing turnaround
Rationalize the whole set-up (Research, Sales, Execution) to increase productivity
Reposition on UK/US clients
Coverage
Further rationalize the set-up and capitalize on the refocused client portfolio
Adapt the set-up: repositioning on core corporate clients in France and close monitoring
of vanilla credit production
Strengthen strategic dialogue (Advisory) and improve cross-selling with all Natixis’ business lines,
to reflect the focus on vanilla financing as merely a marketing tool
Selective international development
(1) Trade Finance, Treasury Services
82
3. RWA stability
Enhanced processes
RWA selective allocation
Stronger O2D
Selective vanilla credit production
Increase rotation
Generate higher fees thanks to higher underwritings
improving client positioning
Finalize deleveraging (run-off)
Share of net arrangement
fees in revenues(1)
Re-deploy partly these RWA envelopes towards
Structured Finance and Fixed Income
Develop business lines with low RWA
consumption
+ 10pp
35%
25%
2013e
2017e
Debt Platform, Equity Derivatives, Advisory and selected
Structured Finance business lines
Enhanced analytical processes
Strict risk control policy
(1) Structured Finance (ASF, REF, AEI, GEC) and Commercial Bank; Arrangement fees and servicing fees
83
Wholesale Banking: business model transformation
to improve profitability
2017 ROE
2017 Targets
CoE
2013 ROE
Allocated
Capital
A four-pronged approach
Net revenues
CAGR
~ 5%
CIR
~ 55%
ROE
~ 12%
RWA
Stable
vs. 2013
Enhance O2D model
Improve share of wallet
Operational efficiency / streamlining
of some businesses
Selective growth of the international platforms
84
Conclusion
and Q&A session
Laurent Mignon
Conclusion
Disciplined capital management
Operational excellence
Solid growth prospects
Natixis will be a fully client-centric, less capital intensive
provider of investment and financial solutions with plus-12% ROTE
and a proactive dividend policy
86
Morning closing: Natixis
within Groupe BPCE
François Pérol
Groupe BPCE, the 2nd largest banking group in France
Customer deposits & savings
21.4% market share in France(1)
Customer loans
20.6% market share in France(1)
Retail network
8,000 branches
Net banking income
Gross operating income
€17.1 billion in 9M-13(2) (+2.5% vs. 9M-12)
€5.2 billion in 9M-13(2) (+6.5% vs. 9M-12)
Net income
€2.3 billion in 9M-13(2) (+12.3% vs. 9M-12)
Total assets
€1,146 billion
Common Equity Tier-1 capital
€41.6 billion(3)
Risk-weighted assets
€421 billion(3)
Common Equity Tier-1 ratio
9.9%(3)
(1) Market share at the end of June 2013
(2) Pro forma of the sale of the CCIs held by Natixis and excluding revaluation of own debt for Group results
(3) Estimate as of end-September 2013 – CRR/CRD4, as applied by Groupe BPCE - Fully loaded except on DTAs
88
Natixis, one of Groupe BPCE’s two core businesses
Groupe BPCE 3Q13 pre-tax profit by business(1) (%)
8.7 million cooperative
shareholders
100%
100%
3%
16%
50%
50%
Core business lines
of Natixis: 31%
Retail banking: 72%
9%
72%
6%
28%
Free float
66%
Commercial Banking and Insurance
Wholesale Banking
Equity Interests
(1) Excluding the GAPC "Workout portfolio management" and "Other businesses"
89
Natixis, a listed asset of Groupe BPCE, with a minority
shareholder-friendly policy
Natixis will remain listed as a stand-alone company
Best governance practices
One third of Natixis’ Board of Directors are independent members
Separation of Chairman of the Board and CEO roles ensures better balance of power between controlling bodies
and Natixis’ management
Minority shareholder-friendly/Alignment of interests
Group internal guarantee & solidarity system/ GAPC guarantee
CEO’s variable compensation is index-linked to Natixis shares
CCI buyback transaction completed on August 6, 2013: exceptional distribution of €2bn
Payout ratio ≥ 50%
Natixis share price growth vs. STOXX 600 / banks, 01MAR09-08NOV13, in %
Natixis
STOXX 600 / banks
411%
97%
90
Natixis’ contribution to Groupe BPCE’s
2014-2017 Strategic plan
91
Significant value creation between Natixis and the retail
networks
Groupe BPCE’s strategic plan
Capture €870m of revenue synergies
through Natixis and the retail networks
Expand Consumer finance in both networks
to reach a market share of around 17% in 2017
(vs. around 13% in 2013)
Improve current growth in Life insurance
and customer take-up rates of Personal
protection and P&C insurance
• New product offer
• New client-driven distribution
Development of all other business lines
(Factoring, Leasing, Asset Management, etc.)
with the retail networks
2014-2017 revenue synergies
Insurance
7%
8%
Consumer finance
37%
7%
7%
Factoring
Wholesale Banking
33%
Other Investment
Solutions
Other SFS
92
Growth strategy keeping risk profile at moderate level
Groupe BPCE’s business model is focused
on core markets:
Groupe BPCE: historical cost of risk (bp(1))
Retail banking in France
Savings/Asset gathering
Customer-related wholesale banking activities
at Natixis level
Targeted growth entailing low risk for Natixis:
Cost of risk comparison (bp(1))
Create the insurance platform so as to enable
Groupe BPCE to become a fully-fledged bancassurer
(BPCE Assurances projected acquisition and new
insurance business of Caisses d’Epargne starting
January 1st, 2016)
Wholesale Banking revenue growth mainly driven
by the development of our client base
More ambitious targets for the rollout of the SFS offering
to Groupe BPCE’s retail customers
76
75
69
51
50
45
30
Q1-12
84
72
71
61
55 50
54
75
44
30
Q2-12
BNP Paribas
Q3-12
Q4-12
Groupe Crédit Agricole
68
60 55
46
33
Q1-13
Société Générale
(1) Cost of risk excluding Greek impairment expressed in annualized bp on gross customer loan outstandings at the beginning of the quarter
93
69
67
55
36
Q2-13
Groupe BPCE
40
31
Q3-13
Pursue our improving solvency trajectory and maintain a sizeable
liquidity reserve
Natixis benefits from Groupe BPCE’s
high level of solvency
Groupe BPCE offers Natixis stable
access to a strong refinancing pool
> 12%
141%
9.9%
132%
CET 1
ratio
132%
160
CET 1
ratio
Short-term funding outstandings
(in €bn)
117
103
106
2017
156
140
136
103
September 30, 2013
Liquidity reserves/ST funding
outstandings (as a %)
137%
111
116
Avalaible assets eligible for central
bank refinancing (in €bn)
97
90
Groupe BPCE’s total capital ratio above
15% by 2017 at the latest (1)
Leverage ratio: 3% throughout the plan(2)
Cash replaced with central banks
(in €bn)
46
43
57
40
12/31/2012 03/31/2013 06/30/2013 09/30/2013
(1) Subject to bail-in regulation
(2) Calculated on BPCE understanding of CRD4/CRR, without transitional measures, except for DTAs
94
We confidently expect to comply with regulatory standards
on liquidity
Target
Liquidity
Coverage
Ratio
100% at January 1st, 2015
without waiting for the end
of the transitory period
Main actions
Natixis will comply the 1st January 2014
with 100% LCR
Continue our efforts to improve our
deposit base, with a focus on gaining
market shares
Pursue our transformation model:
Loanto-deposit
ratio
Pursuing improvement
• O2D model at Natixis level
• Project for Groupe BPCE consumer
credit securitization
• SCF to refinance long-term loans
originated by the networks and Natixis
95
Groupe BPCE’s 2017 financial targets
Natixis’
contribution
Revenues for core business lines
> €23bn
> €8bn
Group Cost / Income ratio
≤ 65%
~ 65%
Group net earnings
≥ €4bn
96
Summary of our strategy with Natixis
Create value with the two retail networks in France
Natixis to house our national(1) and international businesses
Natixis to contribute substantially to strengthening
the Group’s liquidity position
Groupe BPCE to operate investor-friendly policy through Natixis
(1) Excluding CFF
97
Comments on methodology
Note on methodology:
Figures in this presentation are unaudited
Following the reclassification of the deeply-subordinated notes as equity instruments, interest expense
on these instruments ceased to be recognized in the income statement as of January 1, 2010.
The sale of the CCIs means the effective sale on August 6, 2013 of all CCIs hold by Natixis
to the Banques Populaires and the Caisses d’Epargne. 2013 datas are pro-forma of this operation.
Business line results are based on Basel 3 standards:
Results of Natixis business lines are presented using Basel 3 standards. Basel 3 risk weighted assets
are estimated based on Natixis understanding of the coming regulation.
Capital allocation to the insurance businesses is based on the Basel 3 treatment for investments in insurance
companies, as stated in CRD4/CRR (the consolidated value of the investment being risk weighted at 370%).
Capital is allocated to Natixis business lines on the basis of 9% of their Basel 3 average risk weighted assets.
In this way, the calculated ratio is ROTE by business lines. Since 3Q13, this ratio include goodwill
and intangible assets by business lines to present the ROE.
Other standards:
The remuneration rate on normative capital is 3%.
The bank tax on systemic risk and the contribution to the costs for the Autorité de Contrôle Prudentiel (French
regulator) are allocated to the business lines.
In line with the development of the “Originate to Distribute” model, the results of GSCS (Global Structured
Credit Solutions – which aggregate securitization and credit solutions expertises in the debt platform),
is allocated only to FIC-T.
98
London
November 14, 2013
London
November 14, 2013
“Natixis and
Groupe BPCE networks”
Gils Berrous
Pierre Servant
Frédéric Chenot
Catherine Halberstadt
Alain Denizot
Extensive growth potential within the second-largest
banking group in France…
Two major brands:
Banque Populaire and Caisse d’Epargne
8,000 branches in France(1)
Over 30 million retail clients(1)
Over 1,500,000 professional clients(1)
Over 150,000 corporate clients(1)
(1) Source: Groupe BPCE
102
…represented today by two regional banks
Banque Populaire du Massif Central
Chief Executive Officer – Catherine Halberstadt
Key figures:
85 branches
240,000 customers
900 employees
Savings outstanding: €5.2 billion
Loans outstanding: €4.3 billion
Caisse d’Epargne Nord France Europe
Chairman of the Management Board - Alain Denizot
Key figures:
260 branches
1.9 million customers
2,300 employees
Savings outstanding: €18 billion
Loans outstanding: €12 billion
103
Further growth with Groupe BPCE retail networks
~ €800m cumulative revenues realized at Groupe BPCE level between 2009 and 2013
Target: ~ €870m additional cumulative revenues from end-13 to end-17
Ambition extended
in the deployment of SFS offer
with Groupe BPCE retail clients
Potential catch up to reach
Groupe BPCE market shares
Wholesale Banking
Adapt offering and services
Build the insurance platform
for the group
Further deployment of Private
banking offering
Provide customized solutions
for retail networks corporate
clients
104
Strong catalyst to enhance business with Groupe BPCE’s
retail clients
Cumulative additional revenues with Groupe BPCE generated at Natixis level
End
2009
> €400m
€800m
End-Sept
2013
End
2017
Cumulative target
for 2017:
~ €800m
Focus on main contributors to revenues synergies generation with Groupe BPCE
Consumer finance
Factoring
Insurance
105
Factoring: duplicate the success in each retail network
Current
BP: 7%
CE: 3%
SMIs and professional global equipment rate(1)
Evolution
of ceded turnover
(in €bn)
+40%
23.3
+ 27%
5.9
16.7
13.2
1.5
3.2
11.7
13.5
2017 Targets
BP: 9%
CE: 5%
Change
in new
contracts
+ 40%
+ 43%
(in thousand)
3.4
2.6
17.4
Caisse d'Epargne
1.7
2013 (2)
2009
Banque Populaire
2009
2013(2)
2017
Additional target of €58m cumulative additional revenues to be realized
by Factoring with Groupe BPCE at Natixis level
(1) Active clients with poste clients > 10K€ or 10% in turnover
(2) Estimated
106
2017
Consumer Finance: catch the potential with core clients
Current
A 2017 Consumer finance market share
at the retail network level
Cumulative net revenues generated
with Groupe BPCE at Natixis level
2017 Targets
~ 13%
~ 17%
Change
in new
production
(in €bn)
€68m
€120m
+ 32%
+ 50%
€308m
€240m
11
€120m
8
5
2009
Additional
net
revenues
2013 (1)
Additional
net
revenues
2017
2013 (1)
2009
Additional target of €68m cumulative additional revenues to be realized
by Consumer finance with Groupe BPCE at Natixis level
(1) Estimated
107
2017
Insurance: capitalize on the networks ambition
BPCE networks growth potential for Insurance is significant
Capacity to strengthen existing growth
momentum for life insurance
Capacity to raise the client equipment
rate in personal protection and property
and casualty insurance turnover
Natixis insurance revenues (in €m)
Over 4% CAGR targeted
for 2014-2017
Over 6% CAGR targeted
for 2014-2017
166
Natixis is ready to support the ambitions of the BP and CEP through
56
405
An improved product offer:
• Packaged solutions for SMEs
• Tailored offers to meet affluent clients needs
A new client driven distribution set up:
239
183
• Dedicated teams to support the networks affluent clients team
• Integrated IT tools
• Improved quality of support services: training, web and phone platforms, etc.
2009
Natixis confirmed as the production center
of insurance products for the group
In 2014, Natixis will become the single producer of property and casualty
insurance for the group
Natixis already main producer of group credit insurance
Potential for CEP Life insurance with the ending of CNP contract
Additional
net
revenues
2013 (1)
2017
2017 target:
€166m of additional revenues
for Natixis Assurances
(1) Estimated
Additional
net
revenues
108
“NGAM multi-boutique
structure”
Pierre Servant
John Hailer
Pascal Voisin
An organization built for growth on a global basis
Natixis Global Asset Management - Holding
U.S.
Investment Center
Europe
Investment Center
15 specialized affiliates
with distinctive
capabilities
A “core/satellite” model
with NAM in the center
and specialized
boutiques
Assets under management
by geographical zone
International
€319bn
(51%)
US
€300bn
(49%)
NGAM Distribution
U.S. and International Distribution
110
What are our strategic priorities to achieve this plan?
1
2
3
Strengthen our global
distribution set up
and our US business
Transform our European
business to become
a significant player
in a more integrated
European market
Position ourselves to tap
the new sources
of growth in todays
environment
111
We have built an efficient global investment and
distribution platform that sets us apart and delivers value
Global growth has been driven by a diversified multi-affiliate
investment model and a diversified centralized distribution platform
with more than 650 FTE all over the world
Boston
Oakland
$260bn (31%)
of products distributed
through the centralized
distributed platform(1)
43
118
32
135
150
39
49
97
101
25
65
86
2008
2009
Tokyo
Hong Kong
260
International
90
Dubaï
Beijing
Taipei
French BDU (1)
U.S. Retail
Stockholm
London
Amsterdam
Luxemburg
Frankfurt
Geneva/Zurich
Paris
Milan
Madrid
177
Singapore
67
57
120
150
Sydney
2010
2011
2012
9M2013
(1) Including Money Market Funds for $15Bn
112
NGAM U.S. Overview
A diversified model for growth
Our ambition is to continue to grow globally by focusing on the same principles that have
driven NGAM U.S.’s long-term success:
1
2
3
An efficient, disciplined
and diversified global
multi-affiliate investment
platform in parallel with…
A cost-effective,
centralized distribution
effort bringing…
Best-in-class investment
product to retail and institutional
investors in the U.S., Europe,
Japan and other key markets
worldwide
113
NGAM U.S. Overview
A diversified model for growth
If combined, the U.S. fund families distributed
or marketed by NGAM Distribution would rank #8
among top asset gatherers for YTD flows
(long term funds, $ in millions)
Manager
YTD Sep. ($M)
Strong presence in U.S. intermediary retail
1. Vanguard Group
53,983
Whirehouse
2. DFA
17,229
3. JPMorgan Funds
16,945
4. MFS
14,564
5. OppenheimerFunds
13,832
6. MainStay Funds
10,038
7. Goldman Sachs
9,719
8. NGAM(1)
9,169
9. John Hancock
9,017
10. Eaton
7,520
Fiduciary Services
Independent
(1) NGAM includes the assets under management in the Natixis Funds, Loomis Sayles Funds, Hansberger International Series, Aurora Horizons Fund and Oakmark Funds.
Source: Strategic Insights/Simfunds - Open-end funds only, excludes ETFs, money markets and affiliated funds of funds.
114
Our diversified model has allowed us to stay relevant over
multiple investment cycles
We believe in the benefits of diversification and have built one of the most diversified
asset management companies
Our multi-affiliate model allows for multiple investment philosophies and independent
thinking
We are diversified by product, geography and distribution channels around the globe
NGAM U.S. Net Inflows
($ in billions)
23.5
17.3
9 straight years
of positive flows
265
399
353
303
292
214
86%
5.9
5.3
2.3
0.8
2008
NGAM U.S. AUM
($ in billions)
2009
2010
2011
2012
YTD Sept.
2013
2008
2009
2010
2011
2012
115
Sept.
2013
A diversified international distribution platform structured
to leverage our core competencies in new markets
The foundation of our international plan is to intensify our diversification across all sales channels:
Institutional:
maintain our efficiency
Wholesale:
strengthen and grow relationships
Continue to focus on large
institutional clients
in all countries
Continue to develop relationships with home
offices of global distribution firms in addition
to close relationship with local offices
Replicate the efforts done in the U.S.
and UK/Europe in newer markets
(Asia, Latin America, MENA)
NGAM International
Distribution
Net Flows
($ in billions)
10.6
7.4
Replicate the success we had
in the U.S. market that led to a more diverse
mix of assets
Retail efforts were launched in the UK in 2013
NGAM International
Distribution AUM
($ in billions)
32.4
67.8
57.3
48.6
38.6
25.2
4.4
4.1
Retail:
launch retail initiatives in selected
international markets
169%
2.3
0.4
2008
2009
2010
2011
2012
YTD Sept.
2013
2008
2009
2010
2011
2012
YTD Sept.
2013
Numbers exclude French BDU
116
1
2
3
distribution set up
and our US business
business to become
European market
the new sources
of growth in todays
environment
117
Transforming the European model: rationale
Transform a centralized, “family centric” organization
in a model able to compete globally
Make clear cut choices about the expertise we are willing
to develop
Increase the share of distribution done outside France
taking advantage of our global distribution platform
Put a clear focus on innovation in order to increase
the profitability of our European operations
Maintain a centralized operational platform to support
this development
118
Create a European multi-affiliates model….
NAM
Other European affiliates
Fixed income
€214.4bn(1)
Responsible investment
€3.9bn(1)
European equities
€18.5bn(1)
Structured & volatility
€15.1bn(1)
Investment & client
solutions
€31.9bn(1)
Global emerging
€0.9bn(1)
CORE
SATELLITE
NAM operational platform (Finance, HR, Risks, Compliance, Legal…)
(1) As of June 2013
119
Solutions
Opportunity Challenge
…With focused initiatives and distinctive expertise
to grow in the 3P market in Europe and then more globally
Historically low level
of interest rates
Diversify away
from duration risks
Fierce competition
from ETF
Renewed appeal
for Europe
Growing demand
for alternative strategies
Play alpha, not Beta
New approach
to European equities
Explore new,
non correlated
and risk managed assets
Short Term Credit
Long/short Credit
Value & small caps
Flexible Allocation
Natixis Euro Short Term
Credit
Natixis Credit
Opportunities
Seeyond Global Flexible
Strategies
High Yield
Absolute Performance
Strategies
Natixis Europe value
Natixis Europe Smaller
Comp
Natixis Euro High
Income Fund
Natixis ST Global High
Income
H2O Allegro
H2O Vivace
Relative Performance
Strategies
H2O Multi-bonds
H2O Multi-equities
Thematic approach
Mirova Euro Sustainable
Equity
Mirova Europe
Sustainable Equity
Minimum Variance
Seeyond Europe Min
Variance
Actively managed
volatility
Seeyond Volatility Equity
Strategies
Risk parity
Infrastructures
Loans
120
1
2
3
distribution set up
and our US business
business to become
European market
the new sources
of growth in todays
environment
121
A global message for modern markets
82%
of institutional investors say
mitigating the impact of market
volatility will be challenging(1)
59%
of financial advisors say they need
to replace traditional diversification
and portfolio construction techniques
with new approaches to achieve results(2)
68%
of individual investors say market
volatility has eroded their confidence
in the markets(3)
Durable Portfolio
Construction®
An investment philosophy focused
on pursuing smarter strategies
for navigating complex markets,
while building a solid foundation
for achieving long-term goals
(1) Online survey of 500 institutional investors in the 19 countries by CoreData in January-February 2013 on behalf of NGAM
(2) Online survey of 1,300 financial advisors in nine countries conducted by CoreData in August-September 2013 on behalf of NGAM
(3) Survey of 5,650 global investors with $200,000+ investable assets conducted by CoreData in June - July 2013 on behalf of NGAM
122
A global message for modern markets
Durable Portfolio
NGAM U.S. retail flows(1):
a more diverse mix with
liquid alternatives
Construction®
Five principles
Alternatives
1
2
3
Understanding/
Putting
risk first
Maximize
diversification
Use
alternatives
Equity
Fixed Income
31%
64%
53%
4
5
Smarter use
of traditional
asset classes
Be
consistent
28%
16%
8%
2009
YTD 9/2013
(1) Gross sales for NGAM US Distribution mutual funds flows
123
Conclusion
We are confident in our ability to grow organically
and deliver this plan in a normalized business environment
thanks to the investments we made since 2007
We are also ready to seize M&A opportunities with limited
execution risks because of our experience of previous
acquisitions
124
“Originate to Distribute”
Olivier Perquel
Pierre Debray
Christophe Lanne
Luc François
O2D: a client-focused model
Generate
new
production
Origination
Free-up
resources
Distribution
Syndication
Improving ROE
by increasing
arrangement
fees and decreasing
final take
on balance sheet
Optimize
Natixis
balance
sheet
Optimize
Natixis final
take
Portfolio
Management
126
A fully integrated chain
Originate to Distribute
Origination
Syndication
P. Debray
M. Vincent
L. François
GEC
GEC
AEI
ASF
REF
AEI
REF
Coverage
M. Vincent
ASF
Commercial bank vanilla
loans origination
Distribution
Secondary
L. François
loans origination
Portfolio Management
C. Lanne
Servicing
GEC
AEI
REF
ASF
P. Debray
loans origination
Repackaging
Partnerships
Specific performance indicators to foster O2D implementation
127
Bank and Non-Bank
Bank investors
Issuers and borrowers
Primary
O2D: landmark transactions
2013
AEI
Refinancing of existing
debt maturing in 2015
EUR 1,650,000,000 – Belgium
MLA, Bond manager, Bookrunner
Natixis was able to offer the transaction’s biggest ticket
(€225m), thanks to its partnership with Belgian insurer
Ageas, with which it made a joint offer in the tender bid
2013
ASF
Natixis managed to very substantially reduce its initial take
thanks to the partial transfer of the loan to Ageas
and to the placement of the bond
Sonangol
Finance
Ltd
2013
GEC
Optimized balance sheet rotation: this new facility having
been anticipated and prepared by the sale on the secondary
market of the entire $97m outstanding in the existing 2012
facility with a positive global impact on P&L and EVA
Natixis ASF was able to leverage on the bank's syndication
and DCM capabilities to position itself as one of two banks
arranging a € 1.4bn takeover of Impregilo by Salini
to create the top Italian construction company
In the process we substantially improved fee generation acting
as guarantee provider, M&A advisor, bond bookrunner, while
reducing our exposure through a bond issue and bank
syndication
Receive Purchase
Agreement Facility
USD 2,500,000,000 – Angola
Joint MLA, Underwriter, Bookrunner
$500m underwriting in this new 5-year facility, reduced
to $265m after primary syndication, incl. $154m insured
Acquisition financing
EUR 1,400,000,000 – Italy
M&A Advisor, MLA, Bookrunner
2013
Mortgage Refinancing of a house
portfolio leased to EDF
EUR 620,000,000 – France
MLA & Documentation Agent
Natixis acted as sole MLA for a €620m refinancing
REF
The debt was subscribed 40% directly by the bank market
The remainder was placed through a French mutual fund
(Fonds Commun de Titrisation), structured specifically for this
transaction and involving a number of institutional lenders
An innovative structure which made it possible for institutional
investors to take part in the loan syndication, working closely
with banks in a real estate finance operation, rare in the French
market
128
Roll-out of O2D implementation
Impact of O2D per transaction
Illustrative example
Before O2D
O2D Model
Impact of O2D on targeted 2017
Wholesale Banking ROE
O2D Impact
Underwriting
Revenue growth
Net margin
New gross production
Fees
Primary distribution
Primary distribution
Loss/sales
(secondary market)
Secondary distribution
RWA
Secondary distribution
2017 ROE impact c.[1-2]pts
Final take (bal. Sh.)
Loan
Loan
New production(1) (€bn)
14.8
12.7
FY 2012
9M13
Share of net arrangement fees in revenues
~ 115%
of FY2012
new
production
+ 10pp
35%
25%
2013 E
2017 E
(1) Structured Finance / O2D perimeter, new production including arrangement
(2) Structured Finance (ASF, REF, AEI, GEC) and Commercial Banking, including servicing fees
129
(2)
Conclusion
Laurent Mignon
Comments on methodology
Note on methodology:
Figures in this presentation are unaudited
Following the reclassification of the deeply-subordinated notes as equity instruments, interest expense
on these instruments ceased to be recognized in the income statement as of January 1, 2010.
The sale of the CCIs means the effective sale on August 6, 2013 of all CCIs hold by Natixis
to the Banques Populaires and the Caisses d’Epargne. 2013 datas are pro-forma of this operation.
Business line results are based on Basel 3 standards:
Results of Natixis business lines are presented using Basel 3 standards. Basel 3 risk weighted assets
are estimated based on Natixis understanding of the coming regulation.
Capital allocation to the insurance businesses is based on the Basel 3 treatment for investments in insurance
companies, as stated in CRD4/CRR (the consolidated value of the investment being risk weighted at 370%).
Capital is allocated to Natixis business lines on the basis of 9% of their Basel 3 average risk weighted assets.
In this way, the calculated ratio is ROTE by business lines. Since 3Q13, this ratio include goodwill
and intangible assets by business lines to present the ROE.
Other standards:
The remuneration rate on normative capital is 3%.
The bank tax on systemic risk and the contribution to the costs for the Autorité de Contrôle Prudentiel (French
regulator) are allocated to the business lines.
In line with the development of the “Originate to Distribute” model, the results of GSCS (Global Structured
Credit Solutions – which aggregate securitization and credit solutions expertises in the debt platform),
is allocated only to FIC-T.
131
London
November 14, 2013

NATIXIS INVESTOR DAY London

Transcription

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