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U NIVERS AL REG I S TRATIO N D OCUMENT 2021 ANNUAL FINANCIAL REPORT 2020 TABLE O F CONTENTS U = History 7 Societe Generale — CSR at a glance 268 Profile of Societe Generale 8 Societe Generale and Covid-19: what we are doing to manage the crisis 270 A strategy of stronger, profitable and sustainable development based on a Societe Generale's CSR approach 274 diversified and integrated banking model 11 Societe Generale, a responsible financial The Group's core businesses 16 company… 277 ...that wants to build a better and sustainable future together with its customers 304 Methodology note 331 Societe Generale Group's main activities 28 Independent third party’s report on the Group activity and results 30 consolidated non-financial statement 336 Activity and results of the core businesses 32 Group’s Duty of Care Plan 338 New important products or services 47 Glossary 346 Analysis of the consolidated balance sheet 53 Declaration of Non-Financial Performance (DNFP) – Cross-reference table 349 Financial policy 55 Major investments and disposals 58 Pending acquisitions and major contracts 59 Property and equipment 59 Consolidated financial statements 352 Post-closing events 59 Notes to the consolidated financial statements 359 Statement on post-closing events 59 Statutory auditors’ report on the consolidated Information about geographic locations and financial statements 523 activities related to 2020 60 Societe Generale management report 529 Financial statements 536 Notes to the parent company financial statements 538 Board of Directors’ report on corporate Statutory auditors’ report on the financial governance 64 statements 593 Statutory auditors' report on related-party agreements 147 G U =AA The Societe Generale share 600 Key figures 150 Information on share capital 603 Risk factors 152 Additional information 607 Risk management organisation 163 By-laws 609 Internal control framework 172 Internal rules of the Board of Directors 615 Capital management and adequacy 179 Charter of the US Risk Committee of Credit risk 190 the Societe Generale Board of Directors (the “Charter”) 622 Counterparty credit risk 216 List of regulated information published in the Market risk 224 last 12 months 625 Operational risk 236 Structural interest rate and exchange rate risks 243 >:? Liquidity risk 247 U Compliance risk, litigation 254 Model risk 260 Person responsible for the Universal Risk related to insurance activities 262 Registration Document 628 Other risks 263 Statement of the person responsible for the Universal Registration Document and the Annual Financial Report 628 Persons responsible for the audit of the accounts 628 P Cross-reference tables 630 Declaration of the Issuer 632 F Millions of euros: EURm / Billions of euros: EURbn / FTE: Headcount in Full-Time Equivalents Rankings: the source for all references to rankings is given explicitly. Where it is not, rankings are based on internal sources. U NIVERS AL R EGISTRATION DOCUMENT 2021 ANNUAL FINANCIAL REPORT 2020 This Universal Registration Document was filed on 17 March 2021 with the AMF, as competent authority under Regulation (EU) 2017/1129, without prior approval pursuant to Article 9 of the said regulation. The Universal Registration Document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal Registration Document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129. This document is a translation into English of the Annual Financial Report/Universal Registration Document of the Company issued in French and it is available on the website of the Issuer. This label recognises the most transparent documents and information materials according to the criteria of the classement annuel de la Transparence (Annual Transparency Ranking) (https://www.grandsprixtransparence.com). ) )' ($%$%&$&! !' & 9 MESSAGE FROM THE CHAIRMAN Our purpose, in action IJRTSXYWFYJI TZW ąSFSHNFQ XTQNI- ity and our capacity to bounce back. 2020 was an exceptional year, characterised by the unprece- Beyond the widespread business dented global health and eco- downturn and the anticipated rise nomic crisis, which continues in the cost of risk, we have faced un- to impact our daily lives and heard-of market dislocation, which our work at the start of 2021. weighed heavily on certain struc- tured products investment activi- Faced with this unprecedented cri- ties. We were able to react quickly sis, Societe Generale group has and undertook a full review of these shown that it is mobilised, resilient, TUJWFYNTSXYTQT\JWYMJNWWNXPUWTąQJ and ready to press ahead in prepar- while preserving our global leader- ing for the future, determined to ship. After the impact on earnings in act responsibly toward all its stake- YMJąWXYMFQKTKYMJ^JFW\JIJRTS- holders, and guided by its corporate strated our ability to rebound in the purpose. YMNWI VZFWYJW FSI HTSąWRJI YMNX NS Mobilised the fourth quarter, with a return to Lorenzo Bini Smaghi normal in all our business lines. Chairman of the Board Our primary and ongoing concern of Directors has been the unconditional need to On the whole, we proved how resil- protect the health of our staff and our ient we are, how strictly we manage clients, while also preserving the vital costs and risks, and how sound our importance of our business continu- balance sheet is, with the quality of ity to ensure the proper performance our credit portfolio holding up well, of our economies. and our level of capital wholly above During this crisis, the banks, Societe regulatory requirements – thereby Generale included, have demon- meeting the targets we set our- strated their essential role in provid- selves. We are intent on meeting ing everyday services and offering our shareholders’ needs and will solutions to help customers absorb follow the European Central Bank’s the economic shock, in particular by recommendations on the payment rolling out the measures put in place Faced with this of dividends. unprecedented crisis, by governments. Thanks to the in- Societe Generale Group credible commitment of our 133,000 Preparing for the future members of staff around the world, has shown that it is We also set to work preparing the fu- we have risen to these multiple chal- mobilised, resilient, ture of our Group and launched new lenges, standing alongside our cus- and ready to press structural initiatives to lay the foun- ahead in preparing tomers and our partners. dations of our next strategic phase for for the future, 2025. The three key priorities of this determined to act Resilience responsibly toward Like many economic organisa- 2025 initiative are customer-centric- all its stakeholders, tions, we ourselves have suffered ity, social and environmental respon- and guided by its the direct impact of this crisis on XNGNQNY^ FSI TUJWFYNTSFQ JKąHNJSH^ corporate purpose. our earnings, but nevertheless have through the use of digital technology. : ' ($%$%&$&! !' & ) ) AND CHIEF EXECUTIVE OFFICER Accordingly, we announced our am- over the short and medium term: bitions for French Retail Banking, with responding to the many macro- a proactive policy to merge our two economic, environmental, and so- networks, Crédit du Nord and Societe cial issues, and working with our Generale, as well as a very ambitious HQNJSYXYTąSIWJXUTSXNGQJNSST[F- development plan for Boursorama. tive solutions to this crisis and to We presented the development the greener and more inclusive re- plans for our Czech subsidiary KB covery we want to build together. and ALD Automotive, which is al- ready launching itself into the mo- With the support of the Board of bility of tomorrow. We also took Directors and the new General an important step with our reme- Management team, we will fo- diation plans, which we are in the cus on the success of all the proj- UWTHJXXTKąSFQNXNSLYTXYWJSLYMJS ects we have launched, which our operations in terms of compli- are adding meaning and creating ance and control, and to further long-term value for all our stake- embed our culture of ethics and holders. We are also going to responsibility. \TWP TS ąSFQNXNSL XYWFYJLNH NSNYNF- Frédéric Oudéa tives across our various business In a world of profound changes, ac- (MNJK*]JHZYN[J4KąHJW lines, such as Global Banking and celerated by the Covid crisis, we Investor Solutions. Our objective have made good progress with the major challenges of transforma- \NQQFQXTGJYTIJąSJTZWUWTFHYN[J tion by adapting our business lines; medium-term roadmaps for inno- strengthening our digital strategy; vation and CSR, remaining open and, as a leader in the energy transi- to our stakeholders, and fully in- tion, reinforcing our climate pledges tegrating them into our business as well as our initiatives in favour of lines’ strategies. We intend to sup- greater diversity in the workplace. port our customers during this cri- The Group’s progress in every as- sis and over the longer term with pect of CSR has been recognised by their energy and digital transitions, YMJJ]YWFąSFSHNFQWFYNSLFLJSHNJX reinforcing the added value and sharpening the competitive edge KʯljƺʍɽȈȶǼƃȶǁˎȶƃȢȈɰȈȶǼ of our various business lines. ɁʍɨɰɽɨƃɽljǼȈƺɨɁƃǁȴƃɥɰ In light of an uncertain future Despite the uncertainties, we are caused the pandemic that remains HTSąIJSYFSIIJYJWRNSJIYTRT[J widespread