Amundi : 2020 - Annual Report

2020

Annual

Report

Contents

02	02 ID card
04 Editorial by Xavier Musca and Yves Perrier
06 2020 key figures
08 Amundi on the stock market

1. trusted partner working every day in the interest of its clients and society

Act

as a responsible leader

Offer

solutions adapted to the challenges of our clients and society

Strengthen

our performance with a responsible approach

Create

the conditions for confidence

Governance

10	12	Environment and strategy
		14 Our business model
		16	ESG: a recognised leader
			that meets its commitments
		18	Responsible investments
			for a more sustainable economy
		20 CDP/Amundi: a pioneering
			science-based partnership
	24 Strong momentum across all customer segments
22		despite the health crisis
26 Distribution networks: time for a digital reset
28 The partnership with Bank of China is operational
30 Third-party distribution partnerships with asset
	managers become ever more exclusive
32 "Carteras Master", a pioneering concept
	for Amundi and CaixaBank AM
34 Institutional investors are sensitive
	to the social impact of their investments
36 A bond to build on: Amundi and the AIIB
		40 Solid performances for Amundi's asset
38		management activities
42 ESG investing reinvigorates active management
44 A dynamic vision of ESG selection designed
	to capture alpha
46 The role of passive management as a facilitator
	of the ESG transformation
48 Mounting a passive offensive against climate change
50 Supporting companies in the crisis and
	safeguarding investors' interests
52 Wifirst: a spin-off gearing up for growth
54	56 The increasingly critical asset for portfolio
		management? Technology
	58 International expansion, a new challenge
		for the control functions
	60 2020, a year of new challenges for Human Resources
	62 On CSR, Amundi knows that to be a responsible
		player, you need to do as you say
64	66 Changes in governance
68 Board of Directors
70 General Management Committee
and Executive Committee
72 Global Advisory Board -
Role of the Management Bodies
74 Glossary
Terms listed in the glossary
are marked with *

AMUNDI

Being a trusted partner

means being attentive to our clients' needs

Confidence cannot be given on demand, it must be earned every day by delivering concrete results. This is the guiding principle we have embodied since 2010, and which has led us to develop savings and investment solutions that meet our clients' expectations. We offer all of our clients, whether they are Retail, Institutional investors or Corporates, a full range of investment solutions thanks to our six investment platforms operating in all financial markets.

Being a trusted partner

means being a long-term partner

Together with our 4,700 employees based in more than 35 countries, we believe that our relationship with our clients should be based on confidence. We provide them with support on a daily basis to build an enduring relationship based on sound advice, long-term performance and a commitment to social responsibility. Our advice to clients is supported by our unique research capabilities, our proven track record in asset management, as well as our high standards of service.

Being a trusted partner

means being a responsible partner

Responsible investment is one of Amundi's cornerstones. We have always believed that companies and financial actors have the responsibility to face today's major challenges, and specifically in energy transition and social inclusion. We believe that taking public interest into account strengthens financial performance. That is why we integrate both financial and non-financial analysis into our investment decisions.

01

Amundi, the leading European asset manager

The no. 1

European asset manager in the global top 10(1)

The highest

market capitalisation in Europe(2)

€378bn

Assets under responsible investment management

€1,729bn

Amsterdam	Durham	Montreal	Tokyo
Bangkok	Frankfurt	Mumbai	Toronto
Barcelona	Geneva	Munich	Vienna
Beijing	Helsinki	Paris	Warsaw
Boston	Hong Kong	Prague	Yerevan
Bratislava	Kuala Lumpur	Santiago	Zurich
Brussels	London	Seoul
Bucharest	Luxembourg	Shanghai
Budapest	Madrid	Singapore	Investment hubs
Casablanca	Mexico City	Sofia	Local investment centres
Other Amundi entities
Dubai	Miami	Stockholm	Joint ventures
Dublin	Milan	Taipei	As of 31/12/2020.

	Assets under
	management
	Asia
Europe	17%
excl. France
and Italy
13%		Rest of the world
		2%
Italy		Americas
10%	Breakdown	4%
	of AuM
	by geography
	(31/12/2020)

France

54%

(1) Source: IPE "Top 500 Asset Managers" published in June 2020, based on assets under management at 31 December 2019.

(2) Among traditional asset managers - Refinitiv, December 2020.

A complete range

of active and passive management in traditional and real assets

More than

35

countries

More than

100

million clients

4,700

employees

02/

03

"In 2020, Amundi

continued its trajectory of profitable growth and entered

a new phase of its

commitment

to sustainability as a responsible investor."

"Amundi once again confirmed

the strength of

its business model

and launched several

strategic initiatives

that will fuel

its growth going

forward."

Xavier Musca

Chair of the Board of Directors of Amundi

Deputy Chief Executive Officer of Crédit Agricole S.A.

The year 2020 will be remembered as one of unprecedented crisis. However, Amundi successfully passed this test of resilience. The company's business lines sustained their momentum with contributions from all client segments, and financed internal growth investments thanks to continued productivity gains. Its cost/income ratio (51.7%) remained amongst the best in the industry. Corrected for market effects, results for 2020 are in line with the company's 2018-2020 plan. On the back of this strong performance and our sound financial structure, the Board has submitted a proposed dividend of 2.90 euros per share to the Annual General Meeting. This is equivalent to 65% of the Group's share of net income.

Throughout this turbulent year, Amundi continued paving the way forward with new initiatives: creating a new joint venture with Bank of China, acquiring Banco Sabadell Asset Management in Spain and launching Amundi Technology.

Amundi is entirely aligned with all three dimensions (client, human and societal) of the Crédit Agricole Group's project. As a leader on ESG issues, Amundi is able to offer clients of the Group's networks and third- party distributors savings solutions that meet their expectations regarding social and

environmental goals. Consistent with objectives announced in 2018, 100% of Amundi's actively managed funds now take ESG criteria into account.(1) The company has also exceeded its target for assets held in 'green solutions', increasing assets under management at end-2020 to €21.9 billion from €12.3 billion. Amundi's ever more numerous initiatives to foster a form of finance that better respects the

environment and promotes social cohesion contribute to the Crédit Agricole Group's ambition to become Europe's leading company for responsible investment.

Paving the way forward also includes tending to management succession. After 14 years helming the Group, Yves Perrier has wished to pass on the responsibilities of Chief Executive Officer. Under his leadership, Amundi has grown to be the leading European asset manager and a global leader recognised for the strength of its business model, its dynamic growth and its positioning as a financial player committed to society. Both Amundi and the Crédit Agricole Group owe a great

deal to Yves Perrier.

The Board of Directors has nominated Valérie Baudson to succeed Yves as CEO and I have proposed that he take my place as Chair of the Board of Directors so that Amundi continues to benefit from his unparalleled experience. This change in governance will help us ensure a smooth transition and guarantee Amundi's continued success.

Despite the unprecedented health crisis, Amundi successfully demonstrated the strength of its business model and organisation.

The robustness of our IT infrastructure and the commitment of employees made it possible to ensure a high level of service all year long, throughout the 36 countries in which the company operates.

The 2020 financial year reaffirmed the profitable growth

momentum which the company has sustained since its creation. Inflows remained high (+€45 billion), and adjusted net income (€962 million) is - excluding market effects - in line with the objectives set out in the 2018- 2020 strategic plan. And lastly the cost/income ratio (51.7%) remains one of the industry's highest. These results made it possible to reinforce the company's financial structure and resume paying a dividend consistent with the policy announced at the time of the IPO (65% of consolidated net income).

Yves Perrier

Chief Executive Officer

of Amundi

2020 also yielded a wealth of strategic initiatives. Our agreements with Société Générale were renewed for five years. The joint venture created in China with Bank of China and the acquisition of Sabadell Asset Management in Spain strengthen the company in its two priority areas for international growth: Europe and Asia. And lastly, the

launch of Amundi Technology, a new business line, leveraging the IT expertise we have developed in-house, is set to deliver a new source of growth.

Today, Amundi is the industry's European leader, recognised worldwide for its expertise, its growth momentum and profitability, as well as for its commitment as a responsible investor.

It is in this context that I decided, after 14 years at the helm of the company, that the

time had come to hand off the duties of Chief Executive Officer. As of 10 May, 2021, Valérie Baudson will succeed me in this role, while I will become Chair of the Board of Directors. Valérie Baudson has been with the company since 2007 and has played a key role in Amundi's success by developing the passive/ETF business and CPR AM*, as well as through her active contributions to the Group as an executive. I have full confidence in her ability to steer Amundi along a continued trajectory of growth.

(1) February 2021. All open-ended funds actively managed by Amundi to which an ESG-rating methodology can be applied.

04/

05

2020 key figures

In 2020, Amundi continued its profitable growth trajectory. During an exceptional pandemic year, Amundi demonstrated its resilience by remaining 100% operational and by maintaining a strong business momentum, with net inflows(1) of +€45bn. Net income(2) stayed robust at €962m, almost stable excluding the impact of the market downturn in 2020.(3) These sound results reflect excellent operating efficiency, with expenses down by 2.6% vs 2019, and a cost/income ratio(2)

at 51.7%. The financial situation remains solid with tangible equity(4) amounting to €3.2bn and a CET1 ratio at 20.0%.

Activity
+€45bn	€1,729bn
Net inflows(1)	Assets under
	management(1)

Profitability

€962m

Net income,

Group share(2)

51.7%

Cost/income ratio(2)

1. Assets under management and inflows including Sabadell AM as of Q3 2020 and include assets under advisory and assets marketed and take into account 100% of the Asian joint ventures' inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
2. Adjusted data: excluding amortisation of distribution contracts.
3. Restatement of the impact in 2020 of the decline in the average EuroStoxx index and financial income in the amount of ~-€50m after tax.
4. Equity excluding goodwill and intangible assets.

Growth in assets under management 2009-2020

Assets under management at year-end, in €bn

670	705	671	749	792	878	985	1,083	1,426	1,425	1,653	1,729
2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

Breakdown of AuM

as of 31/12/2020	6%
	€96bn	18%
Real and Structured Assets
			€318bn
			Equities
46%			15%
€791bn	By asset class	€252bn
Fixed Income			Liquidity Solutions

16%

€272bn

Multi-Asset*

26%27%

€449bn€464bn

Retail excluding joint ventures -	Crédit Agricole &
Partner networks and other networks	Société Générale Groups' Insurance Companies*

	By client type
14%	33%
€239bn
Joint-ventures	€577bn

Institutional & Corporate clients

06/

07