Amundi: Activity and results for the first half of 2017

Strong net inflows of +€29 billion

Substantial growth of net income at €308m^[1] (+11%)

Paris, 28 July 2017

Amundi's Board of Directors, chaired by Xavier Musca, convened on 27 July 2017 to review the financial statements for the first half of 2017.

Commenting on the figures, Yves Perrier, CEO, said:

"Amundi confirmed its profitable growth momentum in the first half of 2017. Its net inflows and results growth trends exceed the targets announced at the time of the IPO. The acquisition of Pioneer Investments has been finalized on 3 July as planned. Its integration is well on track. This acquisition is an important step in the implementation of Amundi's growth strategy and will be a strong source of value creation."

Activity: assets under management of €1,121 billion at 30 June 2017; net inflows of +€28.8bn in the first half of 2017, driven by Retail

Amundi's assets under management amounted to €1,121 billion at 30 June 2017, reflecting excellent business activity (net inflows of +€28.8bn in H1 2017) and a positive market effect (+€9.5bn) owing to favourable market conditions, especially in equities. These net inflows trends exceed the target announced at the IPO (+€40bn in average per year).

The Retail segment has seen substantial activity, with net inflows in H1 2017 of +€22.9bn, achieved across all distribution channels, compared to +€10.1bn in H1 2016. Inflows were sustained on the French networks, especially in medium/long-term assets (+€2.4bn), continuing the positive trend observed since the second half of 2016. Inflows were also most significant for third-party distributors (+€9.9bn vs +€3.7bn in H1 2016), with particularly positive momentum in Europe, and for joint ventures (+€7.3bn). The international networks (+€4.7bn, largely attributable to the Italian networks) saw significant inflows from the UniCredit networks (+€3.5bn), demonstrating a positive start to the distribution agreement.

The Institutionals segment recorded a good level of net inflows (+€5.9bn in H1 2017), comparable to the H1 2016 level, despite some exceptional negative developments, particularly the reinternalization of a mandate by the ECB in Q1 2017 (-€6.9bn) and seasonal effects in treasury products. Sovereigns and other Institutionals, as well as mandates from CA and SG insurance companies, contributed positively to net inflows. Net flows in Corporates were negative (-€4.9bn), as in H1 2016.

Net inflows were generated on all asset classes, with medium/long-term assets representing +€12.7bn. To be noticed, the continued strong inflows for ETFs (+€7.7bn), positioning Amundi as the n° 3 in Europe^[7] and for real estate (+€2.2bn).

Finally, net inflows remained primarily driven by international sources (67% of total inflows), which totalled +€19.4bn, i.e. 67% of total inflows). Activity was dynamic in both Europe (Italy, Germany mostly) and Asia. Year-on-year, international assets under management increased by 25%, representing 29% of total assets under management and 44% of total assets excluding Group insurers.

In the second quarter of 2017

The €3.7bn outflow is attributable to contrasting trends:

Retail net inflows remained strong (+€7.5bn), driven in particular by momentum in third-party distributors and the international networks. Net inflows in medium/long-term assets on the French networks remained dynamic (+€1.4bn), while joint ventures saw moderate outflows over the quarter due to a negative result in China, partially offset by positive flows in India and South Korea.

The Institutionals segment recorded a net negative flow of -€11.2bn due to significant outflows in treasury products. This follows a very substantial inflow in the first quarter (+€17.1bn).

Results^[8] for the first half of 2017: net income of €308m, a substantial increase (+10.9%); solid revenue growth and an improved cost/income ratio (-2 points)

Amundi's results in the first half of 2017 confirm a trend of steady growth, exceeding the targets announced at the IPO (+5% average annual growth of net earnings per share from 2016 to 2019).

Net income Group share was up 10.9%⁸ from the first half of 2016. This excellent result was driven by solid revenue growth (€910m) of +8.6% linked to the 12-month growth in assets under management. Performance fees totalled €64m (+20%). A notable result was obtained in financial income (€56m, +60% vs. H1 2016), attributable to the disposal of financial assets to finance the acquisition of Pioneer.

Operating expenses were under control at €454m⁸ (+4.4%), leading to a 2-point⁸ improvement in the cost/income ratio, which stood at 49.9%.

The share of net income of equity-accounted entities rose to €16m (+23%). Taking into account a tax expense of €159m, net income Group share amounted to €308m⁸. Published net income Group share (which includes the costs related to the integration of Pioneer, valued at €21m after tax) amounted to €288m, up 3.4% on H1 2016.

In the second quarter of 2017

Net income Group share was €162m^[9], an increase of 9.0% compared to Q2 2016. Net revenue was up 7.9% to €478m. Operating expenses came to €232m⁹, leading to a 1.9-point improvement in the cost/income ratio, which stood at 48.5%.

Published net income (which includes the costs related to the integration of Pioneer) was €145m.

Acquisition of Pioneer Investments

On 3 July 2017, Amundi finalised the acquisition of Pioneer Investments from UniCredit for €3.5bn. The work carried out over the past six months has helped reaffirm the growth strategies of the new group, define priorities for its business lines and formulate an integration plan.

These preparatory efforts confirmed the strategic and industrial rationale of the merging Amundi and Pioneer Investments and the resulting potential for value creation. The organisation and governance of the new Group are in place, allowing the merger can be implemented.

The synergies will be in line with what was announced in December 2016: €150m in cost synergies and €30m in revenue synergies are expected in a full year (2020) upon completion of the integration process. €190m in costs associated with the integration will also be recognised in 2017 and 2018.

Amundi's capital increase initiated on 14 March 2017 was a considerable success. A total of €1.4bn was raised^[10] and 33,585,093 new shares were issued on 10 April 2017. The free float now accounts for 29.8% of shares, and Crédit Agricole Group now only holds 70% of the share capital. After this capital increase, Amundi has the largest market capitalisation among asset managers in Europe and ranks number five worldwide at €13.1bn^[11].

At 30 June 2017, assets managed by Pioneer Investments totalled €221bn, bringing total combined AuM^[12] for the Group to €1,342 billion. The results^[13] for Pioneer Investments are in line with expectations, with net revenues of €422m, and net income of €127, normalised to €120m^[14].

Financial disclosure schedule

27 October 2017: publication of results for the first nine months of 2017

***

Income statement

Change in assets under management from 31 December 2015 to 30 June 2017

Details of assets under management and net inflows by client segment

^*  French networks:  net inflows on MLT assets +€2.4bn in H1 2017, of which +€1bn in Q1 and +€1.4bn in Q2

^**  Net Inflows in International networks in Q2 2017 include the reclassification of €1.1bn of net inflows from UniCredit networks which were included in Q1 2017 in Third-party distributors

^*** Including Sovereigns and  funds of funds

^****  Including Employee savings

Details of assets under management and net inflows by asset class

* Impact of the reinternalization  of an ABS management mandate by the ECB (-€6.9bn)

Details of assets under management and net inflows by region

* of which €400bn for Group insurers

About Amundi

Amundi is Europe's largest asset manager by assets under management and ranks in the top 10 globally^[17]. With the acquisition of Pioneer Investments, the Group now manages over €1.3 billion^[18] in assets and has six primary management platforms^[19]. Amundi offers its clients in Europe, the Asia-Pacific region, the Middle East and the Americas a wealth of market expertise and a full range of investment solutions in passive and active management and real and alternative assets.  Headquartered in Paris and listed on the stock market since November 2015, Amundi is Europe's number one asset management company in terms of market capitalisation and fifth in the world^[20].

With an expanded scope, Amundi can offer its clients an enhanced range of tools and services. Thanks to its unparalleled research capabilities and the talent of 5,000 employees and market experts based in 37 countries, Amundi can provide individual, institutional and corporate clients with innovative savings and investment solutions that meet their specific needs, financial goals and risk profiles.

Amundi. Confidence must be earned.

Visit www.amundi.com for more information or to find the Amundi team closest to you.

Investor contacts:
Anthony Mellor 
Tel. +33 1 76 32 17 16 
anthony.mellor@amundi.com 

Annabelle Wiriath 
Tel. +33 1 76 32 59 84
annabelle.wiriath@amundi.com

DISCLAIMER:

This document may contain projections concerning the financial situation and results of the activities and business lines of Amundi. The figures given do not constitute a "forecast" as defined in Article 2.10 of Commission Regulation (EC) No. 809/2004 of 29 April 2004.

This information is based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context. As such, the projections and results indicated may not necessarily come to pass due to unforeseeable circumstances. Furthermore, the financial information given is based on estimates, particularly when measuring market value and asset depreciation. The reader should take all of these uncertainties and risks into consideration before forming their own opinion.

The figures presented were prepared in accordance with IFRS guidelines as adopted by the European Union and applicable as of this date. The financial information given does not constitute financial statements for an interim period as defined in IAS 34 ("Interim Financial Reporting"), and has not been audited.

The information contained in this presentation, to the extent that it relates to parties other than Amundi or comes from external sources, has not been independently verified, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any negligence or loss that may result from the use of this presentation or its contents, or anything related to them, or any document or information to which the presentation may refer.