BMCE BANK OF AFRICA GROUP JUNE 2019 Content BMCE BANK OF AFRICA GROUP OVERVIEW 3 A LARGE PRESENCE IN AFRICA 11 A COMMITTED GROUP TO SUSTAINABLE 18 DEVELOPMENT AND POSITIVE IMPACT FINANCE FOCUS ON DIGITAL TRANSFORMATION 27 GROUP GROWTH DRIVERS 32 INVESTMENT RATIONALE 34 BMCE BANK OF AFRICA GROUP OVERVIEW A Multi Brand Universal Banking Group Bank Of Africa LCB Bank Banque de Développement du Mali BMCE International Holding – Retail Banking Madrid : Trade Finance ; London & Paris : Investment Corporate Wholesale Banking Banking & Corporate Finance BMCE Euroservices – Banking for Moroccans Living Abroad BMCE Shanghai BMCE Bank Parent Overseas Company Specialised operations Financial Services Salafin – Consumer credit Maghrebail - Leasing RM Experts – Debt Collection Maroc Factoring - Factoring Investment BMCE Capital Plc Euler Hermes Acmar – Credit Insurance banking BMCE Capital Bourse BTI Bank – Participatory Bank BMCE Capital Gestion Advisory & Financial Engineering, Asset Management, Private Banking, Securities Brokerage, Capital Markets, Financial Research, Post-Trade Solutions, Securitisation 4 BMCE Bank of Africa Worldwide Germany Italy China-Shanghai Belgium Netherlands Canada Spain Portugal United Arab Emirates France United Kingdom ASIA EUROPE NORTH AMERICA +15,200 Employees AFRICA 31 Countries 1,700 Branches Morocco Cote d’Ivoire Mali Rwanda Benin Djibouti Madagascar Senegal Burkina Faso Ethiopia Niger Tanzania 6.6 million Burundi Ghana Uganda Togo Customers Congo Brazzaville Kenya D.R.C Tunisia 5 5 BMCE Bank of Africa key figures - December 2018 Total Assets Equity Attributable To Parent 295.5 Bn MAD 18.4 Bn MAD 27 Bn EUR 1.7 Bn EUR 31 Bn USD 1.9 Bn USD Net Income Attributable Net Banking Income To Parent 1.8 Bn MAD 13.2 Bn MAD 167 M EUR 1.2 Bn EUR 191 M USD 1,4 Bn USD Customer Deposits Customer Loans 193 Bn MAD 179 Bn MAD 18 Bn EUR 16 Bn EUR 20 Bn USD 19 Bn USD Exchange Rate EUR / MAD: 10.9525 & USD / MAD: 9.5655 as of December 2018 6 BMCE Bank – Parent Company – Key Figures December 2018 188 Bn MAD 2.6 Bn MAD 17.2 Bn EUR 241 M EUR 5,328 19.7 Bn USD 276 M USD EMPLOYEES Total Assets Gross Operating Income 1.3 M MAD 6 Bn MAD 123 M EUR 550 M EUR 730 BRANCHES 141 M USD 629 M USD Net Income Net Banking Income 128.8 Bn MAD 109.7 Bn MAD 11.8 Bn EUR 10 Bn EUR ~2,5 Million 13.5 Bn USD 11.5 Bn USD CUSTOMERS Customer Deposits Customer Loans Exchange Rate EUR / MAD: 10.9525 & USD / MAD: 9.5655 as of December 2018 7 BMCE Bank Rating Moody’s – February 2019 Fitch Ratings – February 2019 LT issuer rating : Ba1 Local currency deposits : BB+ Local currency deposits : Ba1 Foreign currency deposits : BB+ Foreign currency deposits : Ba2 Support rating floor : bb- Baseline Credit assessment : b1 Viability Rating(*) : BB- Outlook : Stable Support Rating : 3 Outlook : Stable (*) Viability Rating : Upgraded on February 2019 from B+ to BB- 8 60 years of Development •1959: Bank established 1959-1994 •1972: Opens first overseas operations with Paris branch office From a state-owned bank… •1975: Listed on the Stock Exchange •1995: Bank privatised 1995-2006 •2000: Representative offices opened in London and Beijing …to a universal bank •2004: First non-European bank in Morocco to be awarded a CSR rating •2007: BBI London starts operations •2008: Acquires a 35% stake in Bank Of Africa •2013: USD 300 million Eurobond issue •2015 : - New corporate name adopted, ‘BMCE Bank Of Africa’, underlining the Group’s African credentials 2007-2019 - Stakes raised in BOA to 75%, in Banque de Développement …and now a multinational Group du Mali to 32.4% and in LCB Bank to 37% - African Entrepreneurship Award programme launched • 2016: First bank to issue a green bond at COP 22 • 2019: BMCE Shanghai subsidiary starts operations 9 9 Stable & Diversified Shareholding Structure FINANCECOM Private Moroccan group, leader in the As of March 2019 country with a pan African impact. Present in different business areas with a potential economic growth as banking, insurance, telecom, new technologies, asset management, media… BFCM CM-CIC Group RMA 26.21% RMA FINANCECOMGROUP A leading player in the insurance 29.89% market, with an expanded and solid distribution network 36.36% CDG GROUP SFCM; 0.51% Morocco’s largest institutional investor and key player in the national economy. Its active include public FREE FLOAT 18.01% financing of investment projects, saving management activities… BFCM - CM-CIC GROUP One of the leading retail banks in France, providing financial services to EMPLOYEES more than 5.1 million clients, pioneer 1.36% in electronic banking and a major actor in the professional market 10 A LARGE PRESENCE IN AFRICA BMCE Bank of Africa : Large presence in Africa 2007 : Acquisition of 35% of Bank Of Africa, a major Pan ~73% African banking group present in 18 countries in the African continent. Nowadays, BMCE Bank owns 73% of its shares. 2003 : Following a successful restructuring program, BMCE 37% acquired 25% of LCB Bank was made. BMCE Bank owns today 37% of LCB, which the first bank in Congo Brazzaville.. 1989 : First Moroccan Bank to be established in sub-Saharan Africa during the end of the 1980s, beyond a successful 32.4% restructuration of La Banque de Développement du Mali. It is the first Bank in the country in which BMCE Bank owns today more than 32% 2006 : Launch in 2006 of Axis Capital in Tunisia, 59% specialized in asset management, stock brokerage and advisory services 12 12 Shareholding’ Structure of the Group BOA As of March 2019 •BMCE Bank Of Africa : First •PROPARCO : a financial Moroccan bank to be institution jointly owned by establishes in sub-Saharan’s Agence Française de market Développement (AFD) and Private private shareholders from Sector • A network of more than developed and developing 1,700 branches worldwide countries African with a footprint in more than Investors 30 countries Proparco 12.45% 3.73% FMO 8.94% BMCE Bank BIO 2.03% 72.85% •FMO : Dutch development’s •BIO : a Belgian institution agency focused on private specialized in development sector’s financing projects, finance in 2001 to promote the created in 1970 by the Dutch growth of the private sector in government which holds 51% emerging and developing of its capital economies 13 BOA Group’s consolidated figures - December 2018 18 Countries SHAREHOLDERS TOTAL ASSETS EQUITY ATTRIBUTABLE 7.7 Bn EUR TO PARENT 567 M EUR + 6,300 Employees CUSTOMER LOANS CUSTOMER DEPOSITS 4.1 Bn EUR 5.4 Bn EUR 585 Branches NET BANKING CONSOLIDATED NET INCOME INCOME ~ 3.9 498.3 M EUR 82.6 M EUR Million Accounts 1Euro= 655.957 F CFA 14 BMCE Bank of Africa, the second largest Pan African Group BOA-Benin BOA-Burkina BOA-Côte BOA-Ghana BOA-Mali BOA-Niger BOA-Senegal Faso d’Ivoire 2011 1983 1989 1997 1996 1994 2001 Number of Branches: 26 Number of Branches: 65 Number of Branches: 49 Number of Branches: 52 Number of Branches: 39 Number of Branches: 30 Number of Branches: 58 BOA-Togo Tunisia LCB Bank Uganda 2013 2009 Number of Branches: 13 Number of Branches: 19 Djibouti Mali Senegal Niger BOA-DRC BDM SA-Mali Burkina Faso Ethiopia 1983 2010 Côte d’Ivoire Number of Branches: 59 Ghana Kenya Rwanda Number of Branches: 17 DRC Congo Togo Burundi Benin BOA Tunisia BMCE Bank Madagascar 1999 2006 1959 Number of Branches: 92 BMCE Capital Tunis Number of Branches: 730 BOA-Rwanda BOA-Djibouti Burundi BOA-Uganda BOA-Tanzania BOA-Kenya BOA-Ethiopia 2015 2010 Banque de Crédit du Bujumbura 2006 2007 2004 2014 Number of Branches: 14 Number of Branches: 10 2008 Number of Branches: 35 Number of Branches: 26 Number of Branches: 32 Representative Office Number of Branches: 22 15 West Africa Central Africa East Africa Southern Africa North Africa 15 Intra-Group synergies for Africa Development BOA - BMCE Bank of Africa Development of synergies in many areas : Finance, Risk Management, General Control, Compliance, IT … BOA - SALAFIN BOA - BMCE Capital Implementation of a complete platform for automobile financing Joint-venture with BMCE Capital covering activities of advisory, stock brokerage and asset management Implementation of a management tool for debt collection BMCE Shanghai BOA - BMCE BOA - BMCE Bank BOA - RM EXPERT Euroservices International Holding (London, Paris, Madrid) Promotion of Chinese Development of synergies Implementation of a investments on the between BMCE management tool for continent through Trade EuroServices and BOA- debt collection Development in Africa as Finance and Project France in the money a specialist of Corporate Finance transfer activities & Investment banking 16 European operations : a mixed performance Contribution to net income Attributable to shareholders of the parent company BMCE Bank International Holding 6% BIH, the Group’s European platform which brings together the operations of its two European subsidiaries, BBI London and BBI Madrid, contributed 6% or MAD 113 million to net income attributable to shareholders of the parent company at 31 December 2018 BMCE Bank International Plc London posted a mixed set of results at 31 December 2018: the subsidiary was impacted by (i) interest BBI London & Paris rate hikes which impacted its funding costs (ii) exceptional capital gains on fixed income instruments in the previous year and (iii) a decline in net interest income on international markets BMCE Bank International Madrid (BBI Madrid) saw its net income BBI Madrid grow by 47% to EUR 7.9 million in 2018 as a result of a 10.5% increase in net banking income and a 7% decline in expenses 17 A COMMITTED GROUP TO SUSTAINABLE DEVELOPMENT AND POSITIVE IMPACT FINANCE BMCE Bank Foundation in