The document summarizes BNP Paribas' retail strategy presentation from March 2008. It discusses BNP Paribas' focus on organic growth in retail banking and specialized financial services (SFS) through customer centricity. It compares their value creation strategies in mature versus emerging markets, with emerging markets expected to contribute 45% of revenue pool growth between 2005-2015. BNP Paribas aims to drive growth organically by leveraging distribution channels, cross-selling, customer satisfaction and partnerships.

1. 30th Efma Convention:
Leadership in retail finance
L d hi i t il fi
13 p.m. & 14 March 2008 - Paris
Baudouin Prot
Chief Executive Officer
BNP Paribas
BNP Paribas Retail Strategy 1

2. BNP Paribas
Retail Strategy in Mature
& Emerging countries
Baudouin Prot
March, 14th 2008
2

3. The importance of retail banking & SFS
in BNP Paribas’ universal bank offering
Driving organic growth
through customers centricity
Comparing value creation strategies
in mature & emerging markets
3

4. Retail banking & SFS
The highest revenue pool from 2005 to 2015
Estimated revenue pool from 2005 to 2015 (constant $Bn)
Europe Rest of Japan
Rest of
APAC
Rest of
Americas
19
US China
5
AMS Top5 EMEA 23
47 27 21 30 12
33
CAGR
4,3%
US
Europe Rest of Japan China
Rest of
APAC
Rest of
Americas
34
Top5 EMEA
CIB 82 46 41
23 62 47 30 0
CAGR
4,1%
4 1%
37
Rest of Rest of
Retail US Europe Japan China
Rest of Americas
Top5 EMEA APAC
24
& SFS
98
47 56 44 45 62 5
CAGR
3,1%
0% 20% 40% 60% 80% 100%
Source : BCG EMEA = Europe, Middle East & Africa
Total = 910
Retail: 1st contributor to revenue growth
with more than 40% of the revenue pool
Emerging markets : 45% of revenue pool growth
BNP Paribas Retail Strategy 4

5. Retail banking & SFS:
a major business in BNP Paribas’ universal bank offering
Retail banking in 2007: 55% of group revenues
Retail b ki t k
R t il banking networks S i li d Fi i lS i
Specialised Financial Services
Emerging
g g Personal Equipment
q p
F
France It l
Italy USA Finance Solutions
markets
2 230 branches 730 branches 740 branches 1705 branches • Cetelem #1 in • #2 in Europe in
6 mn customers 3 mn customers 4 mn customers 4 mn customers continental Europe business equipment
financing
NBI 07: € 5,7 Bn NBI 07 : € 2,6 Bn NBI 07 : € 2 Bn NBI 2006 : € 1 Bn • UCB #3 in France • Top 3 in Europe in
leasing
• # 1 in France in
leasing
A complete set-up to leverage product factories and distribution platforms
BNP Paribas Retail Strategy 5

6. 2007 results:
Robust growth and market outperformance
French Retail Banking :
Strong sales and marketing drive: record number of customers won
(230,000)and sustained growth in volumes
Despite a difficult market environment, revenue growth outperforming Revenues (€m)
the market, with a 1.1 pt positive jaws effect
BNL bc: 2006 2007
+7.9%
Integration ahead of schedule
7,955
Robust revenue growth thanks to enhanced commercial efficiency
+4.4% 7,374
Strong improvement of the cost/Income ratio: from 70,6% to 66,2%
g p , , 5,671 5,919
,
over one year
+6.5%
IFRS :
2,473 2,634
Continued to pursue sustained business development in
emerging markets
i k t
Won 1.5 million new customers in 2007 in the retail banking networks
Opened 189 branches in 2007
Acquired in 2007 Sahara Bank in Libya and consumer lending companies in
Brazil and Bulgaria FRB* BNL bc** IRFS
BancWest: good sales and marketing drive despite the
downturn
Consumer Finance: Growth in outstandings: +17%/2006 *Including 100% of French Private Banking
and excluding PEL/CEL effects (
g (+4.1% at
Equipment solutions: Good operating momentum constant scope)
**2006 full year pro forma; including 100% of
Italian Private Banking
BNP Paribas Retail Strategy 6

7. The importance o retail ba
e po ta ce of eta banking & S S
g SFS
in BNP Paribas’ universal bank offering
Driving organic growth
through customers centricity
Comparing value creation strategies
in mature & emerging markets
7

8. Our priority: Organic Growth
with 4 key levers
Convergence for Growth
g
Extended Customer
Best-in-class
distribution Cross-selling satisfaction
Offers
channels
• Maintain our • p p
Develop /improve our • Sell branch banking
g • Systematic
competitive existing networks services to SFS measurement
advantage in our customers
businesses
• Develop state of • Develop alternative • Increase revenue per • Anticipate customer
the art Industrial networks customer needs
platforms
Share Platforms and Best Practices Share Customers knowledge
BNP Paribas Retail Strategy 8

9. Customer Satisfaction
at the heart of BNP Paribas strategy and organisation
BNP Paribas recognized know-how: anticipate customer needs
State-of-the-art products
St t f th t d t
and services offer
Partnerships Innovation
Customer
satisfaction
Efficient processes Multichannel distribution
Efficient CRM & Marketing
A few examples of 2007 initiatives:
BDMV2: enhancement of the multichannel offer (NetEpargne, NetImmo…)
Roll-out of Lean Six sigma
g
Mobile banking: partnership with Orange
Customer centricity,
a Key Success Factor for BNP Paribas
BNP Paribas Retail Strategy 9

10. The importance of retail banking & SFS
in BNP Paribas’ universal bank offering
Driving organic growth
through customers centricity
Comparing value creation strategies
in mature & emerging markets
10

11. Retail banking & SFS:
Differentiated value creation path
2 key Development Paths :
1. « Branch Banking » Model: build on networks and leverage customer base
2. « Specialists» Model: broad development on a proven platform of Credit
products, financial services or Savings products
What we bring :
g
Products and sales Know-how
Management / best practice
Rating
Brand
B d
What we seek :
Access to customer Base
Local Human Resources
Deposits
A differentiated roll-out in
mature & emerging markets
BNP Paribas Retail Strategy 11

12. Branch Banking in Mature markets:
Implementation of the integrated model
Outperform the market Create value by applying Implementation of a new
our integrated model business model
French Retail Banking It li retail market
Italian t il k t W t t il k t
Western US retail market
French domestic bc: A strong potential of growth
FBR : A model of commercial and BNL market BancWest: A significant franchise on
industrial organization and restructuring, in a dynamic retail the world biggest market
banking market
Roll-out of BNPP’s Revitalize BancWest
Innovation integrated model network
Private banking business Multi-channel
model « Bear Plan »
Cross-selling
C lli Retail Banking Initiative
“Business Centers” model
Product innovation Commercial Banking Initiative
Be ahead on the internet: Modernization of the branches
Netepargne, Netcredit Immo Efficiency improvement
BNPP’s integrated model. Strengthen our Strengthen the cross
Strengthen cross-selling competitive position selling
Increase # products by customers
Example : Corporate Accelerate the integration plan
customers With the rest of the group :
g p
F
Future consolidation:
lid i CIB: ECEP, syndication
FRB * {CIB, AMS, IRFS} opportunism and pragmatism AMS: Insurance
IRFS: Leasing
Maintain commercial outperformance
outperformance, Leverage the commercial
Priority to organic growth
and preserve significant jaws effect momentum
BNP Paribas Retail Strategy 12

13. Adaptation of our SFS business models
PERSONAL FINANCE EQUIPMENT SOLUTIONS
Merger of Cetelem and UCB Grouping of Arval and BPLG
Develop direct channels and
p Share know-how
know how
increase production via internet
Increase international development
Increased exposure to emerging
markets
An integrated value creation model
A powerful client acquisition engine leveraging branch networks with
specialised finance businesses
A systematic and large scale industrial model
large-scale
BNP Paribas Retail Strategy 13

14. An absolute prerequisite:
Keep on improving our operational efficiency
Rationalization of networks
• Centralization of back offices and branches
• Lean organization in Front office
• More Automation : quot; more time for sale quot;
• Master plan OAV (FRB)
Reorganization of functions
Process Optimization
p & Business lines
• Roll out of Lean 6 sygma / ACE • Reorganization of functions
• Optimization of procurement • Creation of Personal Finance and Equipment Solutions
• Optimization of set-ups (one umbrella in Russia, one
• Focus on the real-estate and IT
single Treasury, Cetelem / Cofinoga)
IT :
Constitution of common platforms
Sharing of developments
BNP Paribas Retail Strategy 14

15. Emerging countries: two differentiated approaches
to increase group exposure
Mediterranean zone and Eastern Europe Brazil - India - China
Densification of existing franchises Active growth strategy driven
Development of cross-selling by a system of sponsoring
10% of the global revenue pool growth
% f 20% of the global revenue pool growth
2006-2010 2006-2010
Organic growth strengthened by targeted Coordinated Strategy and adaptation of
acquisitions in the Mediterranean zone the BNP PARIBAS integrated model in
d in Eastern E
and i E t Europe ti
large emerging countries:
l i
Open 600 branches by 2010 to bring the total quot; retail light quot; experiment in Brazil, capitalizing on
branch network to 2,600 the presence of Personal Finance
Win over 6 million new customers in the retail Industrial Partnerships
banking networks by 2010 Coordination of the Group strategy by a sponsor
Grow revenues per customer member of the Executive Committee
BNP Paribas Retail Strategy 15

16. BNP Paribas targets for Retail Businesses
Estimation of annual evolution
of revenues and jaws effect from 2008 to 2010
j
Revenues Jaws effects
10%
6%
5%
4%
1% 1%
FRB BNL bc IRFS
Ambitious targets for 2010
BNP Paribas Retail Strategy 16

17. Conclusion
Priority to organic growth
with targeted acquisition policy
In mature countries,
leveraging our integrated business model
Acceleration of growth
in emerging markets
Focus on operational efficiency
to increase jaws effects in all retail businesses
BNP Paribas Retail Strategy 17