BRD Groupe Societe Generale S A : Approval of 2022 Budget

BRD GROUP

Budget 2022

General Shareholders Assembly

C O N S O L I D A T E D D A T A , A C C O R D I N G T O I F R S

A P R I L 2 0 2 2

Budget based on assumptions prepared in August/September 2021

MACROECONOMIC ENVIRONMENT

Note: All macroeconomic assumptions for 2022 were prepared in August 2021

• Romania's economy performed strongly in 2021, supported mainly by private consumption and investment. Net exports, by contrast, were significantly negative, reflecting weak external demand and supply chain disruptions.
• On annual basis, real GDP grew by 5.6% in 2021, while the budgetary assumption for 2022 was set at 3.5% (assumption prepared in August 2021).
• Sharp increase in energy prices (combined effect of the liberalization of the domestic retail electricity market and the increase in international oil and gas prices), recovery in demand and very low unemployment rate, are set to lead to elevated inflationary pressures. High pressure on salaries is expected.
• Annual inflation increased from 2.1% in December 2020 to 8.2% in December 2021, and was forecasted to average 2.6% in 2022 (assumption prepared in August 2021).
• Assumption of a slightly higher ROBOR 3M (1.7%) compared to mid year 2021 level (assumption prepared in August 2021).
• Anticipation of solid loan market growth in a relatively supportive environment (assumption prepared in August 2021).

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TRANSFORMING OUR BUSINESS MODEL | RETAIL

STRATEGIC GOALS

Private individuals

Customer first, omnichannel bank providing personalized engagement

• Personalized value proposition, based on behavioral segmentation and use of data analytics
• Truly omnichannel journeys across all channels (branch, mobile, Call Center)
• Model combining human and digital experience, using branches mainly for value added services
• Digital platform providing a complete range of sales capabilities

Small Business

Reshape & boost with improved value proposition and lending intensification

• Personalized offer on specific sub segments for daily banking, lending offer
• Increase sales force efficiency and productivity by increasing commercial time through IT developments and task reallocation to back offices
• Focus on digitalization in order to increase process efficiency and facilitate clients' remote access
• More targeted communication to clients.

FOCUS ON 2022

Client Value Proposition

• Expand and automate client journeys
• Introduce Next Best Offer, using Omnichannel platform for operationalization
• Introduce green lending products
• Reshape Small Business daily banking offer

Accelerate digitalization

• Digitalize interactions in branches through Omnichannel platform stream
• Expand use of end to end digital flows: monetize launched ones (onboarding, consumer lending) and add new flows (credit cards, refinancing, client data update)
• Continue developments in YOU mobile app: add new functionalities and include digital sales

Network optimization

• Continue to adjust the network size and organization
• Expand cashless approach: increase number of self- service branches and 24/7 areas

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TRANSFORMING OUR BUSINESS MODEL | CORPORATE

STRATEGIC GOALS

AMBITIONS

Bank as a partner

Intensify customer focus, building on our historical strength, client relationship

Flawless in client services

Target execution excellence, by raising payments and digital capabilities, while keeping the lead in existing forces

• trade Finance and factoring back-end connection
• Business Cards and e-commerce improvements
• E-bankingand payment functionality upgrades

Growth of loan origination volumes

Simple, quick & online: further improve and digitalize lending processes

Continued focus on green financing

Improve efficiency and ensure sustainable growth

Focus on execution and process automation Diversify and secure revenues

Further leverage on synergies

Especially synergies with:

• Retail, subsidiaries, SG Group business lines
• Capital market capabilities
• GTB activities

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2022 BUDGET - KEY INDICATORS based on assumptions prepared in September 2021

Average net loans| RON bn

							y/y*		y/y*
43. 0
41. 0				32.6 +5.0%		33.6 +3.3%
39. 0			31.0
37. 0
35. 0
33. 0
31. 0												+1.4%
Corporate				+7.3%		10.1
27. 0
29. 0				10.0
			9.3
25. 0
23. 0
21. 0
19. 0
17. 0
Retail 13. 0										+4.1%
15. 0
			21.7	22.6		+4.0%		23.5
11. 0
9. 0
7. 0
5. 0
3. 0
1. 0			2020 A		2021 A						2022 B

Average deposits | RON bn

										y/y*
													y/y*
57.0														53.1
														+4.7%
					50.7			+5.7%
55.0			47.9
53.0
51.0
49.0
47.0
45.0					16.1			+0.8%			17.2	+6.8%
43.0
41.0			16.0
Corporate39.0
37.0
35.0
33.0
31.0
29.0
27.0
25.0
23.0										+8.1%				+3.8%
21.0
19.0
Retail			34.5								35.8
17.0			31.9
15.0
13.0
11.0
9.0
7.0
5.0
3.0
1.0			2020 A		2021 A						2022 B

* Variation at constant exchange rate

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