Low Emission Auto Future (LEAF) Loan Team - Final presentation - CITIZEN ACT 2011

2. LEAF Loan
--Low Emission Auto Future
(LEAF) Loan for Sustainable Development China Team
CO2
IS KILLING OUR EARTH!!
-Glaciers melt at a rising speed due to global warming
-Arctic summer glacier will disappear by 2100
-More and more polar bears are drowned
-Polar bears will be distinct by 2100 or even earlier
-Half of species on earth will disappear by the end of this century
Make the Change with
Société Générale
And CHINA TEAM!!!

3. Concept | Implementation | Business Model | Benefits
Why LEAF Loan?
LEAF Loan
Use Amount>99% Use Amount<1%
15.9% Traditional Green Cut 45%
CO2: Better
Horrible results Gas Cars environment
Main
Contributor powered
cars
Traditional gas powered cars:
Green Cars:
1 Gallon gas=20 pounds of CO2
56 billion tons CO2per year
Gap: High Price Greatly cut CO2 by 20%~45%

4. Concept | Implementation | Business Model | Benefits
What is LEAF Loan?
LEAF Loan is a Car Loan to Green Car buyers at lower interest rate.
Lower Car Emission level Lower interest loan rate
Target Chinese Middle class young citizens
Families with children preferred
Good News for You !!!
Société Générale is planning to expand car loan business into China!
-CGL(Compagnie Générale de Location dEquipements),subsidiary of
Société Générale, has set up BYD Auto Finance Company Limited.
Jointly with BYD Co., Ltd in 2010

5. Concept | Implementation | Business Model | Benefits
Product Details
Green Car Type Emission level Discount rate
Full Hybrid Car Lowest 9%
Mild Hybrid Car Medium 6%
Micro Hybrid Car Highest 3%

6. Concept | Implementation | Business Model | Benefits
Overall Plan
Year 2012 Year 2016 Year 2021
HEV (Hybrid Electric Vehicle) EV (Electric Vehicle)
Other The Whole world
China
Developing countries

7. Concept | Implementation | Business Model | Benefits
Implementation Schedules:
Phase 1: Preparation & Phase 2: Market
Phase 3: Regular Operation
Start-up Trial
Action 2 weeks 10 weeks First Half year Half Year Half Year 1 Year ..
1.1 Form LEAF Team
1.2 Select
Cooperating Partners
1.3 Design & Audit
LEAF Loan
2.1 Promotion
2.2 Give out loan
2.3 Risk Control
3.1 Regular
Operation
3.2 Periodical Review

8. Concept | Implementation | Business Model | Benefits
Implementation Schedules -- Promotion
3 months before Startup Next 1 year
Early Promotion Publicity Continuous Propaganda
Aim
Concept Promotion Increase popularity Attract more applicants
Promotion at branches
Internal promotion Press Conference & Car 4S stores
Building partnership
Direct mailing, Buzz share, SG official website
How Ad/Publicity CSR media
Extensive promotion at BYD Auto stores
Directly promote to existing customers, Display items in SG
branches

9. Concept | Implementation | Business Model | Benefits
Implementation Schedules -- Risk Control
Green Cars Green Cars
Consumers Retailers Car manufacturers
Credit risk: Operational risk:
Cooperation Cooperation
LEAF Loan Policy Market risk:
risk:
Société Générale

10. Concept | Implementation | Business Model | Benefits
Implementation Schedules -- Risk Control
Possible risk Suggested solutions
Policy risk: change of monetary policy Apply for special support of reserve ratio, provision
rate etc.
1. Adjust cooperating car models
Market risk: price of green cars slash
2. More strict evaluation to prevent default
Strict application evaluation criteria:
Credit risk: default mortgage, years living in one city, job hopping
frequency, and car loan insurance is required
Operational risk: 1. More transparent application mechanism
1. Too many people apply for LEAF Loan 2. Monthly report updating evaluation results
2. Use LEAF Loan to buy traditional cars 1. Car number plate check
3. Partnership with car manufacturers and
retailers breaks up Diversify cooperating car manufacturers and retailers

11. Concept | Implementation | Business Model | Benefits
Implementation Schedules – Periodical Review
Improvement for LEAF Loan?
-Update selected car models
-Seek more cooperators
-Reset interest rates
-Adjust max amount of money for LEAF Loan.
Changes for the LEAF project team?
-Whether new staff is needed, assessment of team members’
performance

12. Concept | Implementation | Business Model | Benefits
LEAF Loan Cost
No hardware purchase! No system change! Small initial investment!
Cost per Totals
Type of cost Month (Euro)
HR Related Expenses
Staffing Training 100 200
Staff (4) 600*4
manager (1) 1,000
10,200
Communication Expenses
Start up Cost Public Relation Fee 2,500 5,000
Marketing Promotion Expense with car 2,500 5,000
manufacturers and 4S stores
Main cost Promotion material printed for the following three months 1,500 3,000
Others (Transportation, Telephone) 300 900
TOTAL 23,400
HR Related Expenses
HR Related Expenses
Staffing Salaries 3,400 40,800
Intern Salaries 1,000 12,000
Operational Communication Expenses
Communication Expenses
Cost Public Relation fees 10,000
Promotion: material printing 5,000
Others 4,000
TOTAL 71,800

13. Concept | Implementation | Business Model | Benefits
LEAF Loan Cost (Euro)
Your Cost:
< 390,000 EU for 5 years

14. Concept | Implementation | Business Model | Benefits
LEAF Loan Income (Euro)
Your Income:
Around 770,000 EU for 5 years

15. Concept | Implementation | Business Model | Benefits
LEAF Loan profit (Euro)
Income Cost Profit
770,000 390,000 380,000

16. Concept | Implementation | Business Model | Benefits
Benefits
Société Générale Banking Industry
Help SG expand business in Lead the industry
China Benefits Bring new CSR practice to
Excellent public image the industry
Good customer relationship Inspire banks
Increased employees loyalty
LEAF LOAN CO2 CUT Better environmental
=32280 grown trees awareness
> SG’s emission in 2009 Green lifestyle
LEAF LOAN
Environment Public

17. Concept | Implementation | Business Model | Benefits
Benefits to SG
In the field of carbon reduction, most banks’ CSR practices are CO2 trading or CO2
reduction from building use or air travel. No such CSR practice like LEAF Loan exits!
People
--CO2 trade
Influenced
--Cut business travel
--Buy environment report software
Société Générale
LEAF Loan
BNP Paribas
Deutsche Bank
HSBC
Citi Bank
CO2 Reduction

18. Concept | Implementation | Business Model | Benefits
Benefits to SG
CSR Business Line Stakeholders
SG is planning to expand
First mover advantage loan business to China, and Excellent public image
SG sets CSR new model, LEAF Loan will be an eye- Good customer relationship
become industry leader catching start. Loyalty of employees
in banking CSR SG gets to know its main
customers (middle class) in
China better

19. Concept | Implementation | Business Model | Benefits
High Feasibility
Simple Implementation
Low Cost
Great Benefits
WHAT ARE YOU WAITING FOR ?!

20. Thank You!
LEAF TEAM, CHINA

21. Concept| Product Details| Implementation|Business Model| Benefits
1.Concept 2.Product Details
What is LEAF Loan How to set interest rate
Why LEAF Loan How to choose car brands
Innovation
How to determine market rate
Feasibility Analysis
4.Bussiness Model
3.Implementation
LEAF Loan cost
Overall plan
Financial forecast
Implementation schedule
Communication plan
5.Benefits Risk control

22. Concept| Product Details| Implementation|Business Model| Benefits
1.Concept 2.Product Details
What is LEAF Loan Green car types
Why LEAF Loan Choose cooperation brands
Innovation
Set loan interest rate
Feasibility Analysis
4.Bussiness Model
3.Implementation
LEAF Loan cost
Overall plan
Financial forecast
Implementation schedule
Communication plan
5.Benefits Risk control

23. Concept| Product Details| Implementation|Business Model| Benefits
Action
What LEAF Loan Project do
1. Provide car loans at lower interest rates to young green cars buyers.
2. Promote green driving and green lifestyle.
What is special
Different interest rates are offered to different types of green cars depending on how much
carbon dioxide (CO2) their cars produce.
Lower CO2 level Lower interest
rate
Vision Target Group Schedule
What we aim to achieve Who we are targeting What the steps are
Reduce CO2 by Middle class young citizens Start in China
encouraging more green Families with children preferred Then other developing countries
car purchases.
Good News for You
Société Générale is planning to expand car loan business into China!
-CGL(Compagnie Générale de Location dEquipements),subsidiary of Société Générale, has
set up BYD Auto Finance Company Limited. Jointly with BYD Co., Ltd in 2010
-BYD is one of the largest auto manufacturers in China, with sales ranking No.1 among
local brands in 2010 with 520,000 cars sold.
-BYD is also the largest green car manufacturer in China.

24. Concept| Product Details| Implementation|Business Model| Benefits
Why LEAF Loan?
LEAF Loan
Use Amount>99% Use Amount<1%
15.9% Traditional Green Cut 45%
CO2: Better
Horrible results Gas Cars environment
Main
Contributor powered
cars
Traditional gas powered cars:
Green Cars:
1 Gallon gas=20 pounds of CO2
56 billion tons CO2per year
Gap: High Price Greatly cut CO2 by 20%~45%

25. Concept| Product Details| Implementation|Business Model| Benefits
Is LEAF Loan Innovative?
In the field of carbon reduction, most banks’ CSR practices are CO2 trading or CO2
reduction from building use or air travel. No such CSR practice like LEAF Loan exits!
People
reached
BNP Paribas
-CO2 trading LEAF Loan:
-buy environmental reporting software (ENABLON) Lifetime influence on car
Société Générale
buyers’ lifestyle
Measurable, visible CO2
Deutsche Bank:
reduction
-CO2 trading Profound Generational
BNP Paribas
influence on Children
-environmentally friendly headquarter
HSBC:
Close Correlation with
-Reduce business travel
-CO2 trading SG’s business
Deutsche Bank
HSBC Citi Bank
Citibank:
-consolidated 52 data centers to 24, reducing 300 CO2 Reduction
tons CO2

26. Concept| Product Details| Implementation|Business Model| Benefits
Legal and Policy Feasibility Market Feasibility Financial Feasibility
-90.86million cars, 65.39million -Startup cost: around
-Favorable
private cars, still rising 30000Euro,
policies to encourage green
-59.2% think green cars are too -Operating costs: around
car purchases in China
expensive 70000Euro/year
-Car loan Rules and
-67.5% are willing to buy green -1st, 2nd year: loss
Regulations have no
cars if loan rate is attractive -3rd, 4th, 5th year: profit
regulation on car loan interest
rates -Total: around breakeven point.
Operational Feasibility
Operational Ready/ not? Details
Resources Needed
Initial launching fund to YES 2010 SG net income:
offer LEAF loans 4302 million Euro
Product Team YES Old hire within SG(China) or new hire
Marketing Team YES Old hire within SG(China) or new hire
Risk Management Team: YES Old hire within SG(China) or new hire
Public Relation with Processing Already build relationship with China Banking Regulatory
government Commission
Public Relation with car Yes CGL(Compagnie Générale de Location dEquipements), subsidiary
manufacturers and 4S store of Société Générale has set up BYD auto finance company jointly
with BYD Co., Ltd, which is the largest green car manufacturer in
China.

27. Concept| Product Details|Implementation|
Business Model| Benefits
1.Concept 2.Product Details
What is LEAF Loan How to set interest rate
Why LEAF Loan How to choose car brands
Innovation
How to determine market rate
Feasibility
4.Bussiness Model
3.Implementation
LEAF Loan cost
Overall plan
Financial forecast
Implementation schedule
Communication plan
5.Benefits Risk control

28. Concept| Product Details|Implementation|
Business Model| Benefits
Standard car loan
with different loan rates according to the CO2 emission level
Full Hybrid Car
Mild Hybrid Car
Micro Hybrid Car
CO2 Lowest LEAF
cut= Discount Base market LOAN Loan
Cooperation CO2 plant ? rate Intere exercise Interest Down term Car
Cooperation green car emission grown based on st rate Interest Rate Pay (mon Price
brand model Hybrid Type reduction trees CO2 cut (year) (year) (year) ment th) (Euro)
TOYOTA CAMRY Full hybrid 45% 1.20 9% 6.10% 6.71% 6.11% 40% 36 20,000-30,000
Honda CIVIC Hybrid Mild hybrid 30% 0.81 6% 6.10% 6.71% 6.31% 40% 36 20,000-30,000
GM LaCrosse Micro hybrid 20% 0.54 3% 6.10% 6.71% 6.51% 40% 36 20,000-30,000
BYD F3DM Full hybrid 45% 1.20 9% 6.10% 6.71% 6.11% 30% 24 10,000-20,000
Changan Jiexun HEV Mild hybrid 30% 0.81 6% 6.10% 6.71% 6.31% 30% 24 10,000-20,000
Honda Insight Micro hybrid 20% 0.54 3% 6.10% 6.71% 6.51% 30% 24 10,000-20,000
Changan Zhixiang HEV Full hybrid 45% 1.20 9% 6.06% 6.67% 6.07% 20% 12 0-10,000
Changan Zhixiang HEV Mild hybrid 30% 0.81 6% 6.06% 6.67% 6.27% 20% 12 0-10,000
CHERY A5 BSG Micro hybrid 20% 0.54 3% 6.06% 6.67% 6.47% 20% 12 0-10,000

29. Concept| Product Details|Implementation |Business Model| Benefits
1.Concept 2.Product Details
What is LEAF Loan Green car types
Why LEAF Loan Choose cooperation brands
Innovation
Set loan interest rate
Feasibility
4.Bussiness Model
3.Implementation
LEAF Loan cost
Overall plan
Financial forecast
Implementation schedule
Communication plan
5.Benefits Risk control

30. Concept| Product Details|Implementation |Business Model| Benefits
Overall Plan
Year 2012 Year 2016 Year 2021
HEV (Hybrid Electric Vehicle) EV (Electric Vehicle)
Other
China Developing countries
The Whole world
Why China?
Carbon dioxide emission proportion of each country (region)
-Currently China has become the biggest CO2
emitter.
-Largest car sale growth rate in the world, 43.6% in
2010, still CO2 big emitter in future
-Less than 10000 green cars were sold in 2010 in
China
- Chinese policy encouragement of green cars
Data source: IEA, BOC international
According to McKinsey’s estimation, if green cars are effectively promoted, by 2030
China’s CO2 emission will be reduced by 1.65 billion tons

31. Concept| Product Details|Implementation |Business Model| Benefits
Implementation Model
Green Cars Green Cars
Consumers Retailers Car manufacturers
Cooperation
Cooperation
LEAF Loan
Société Générale

32. Concept| Product Details|Implementation |Business Model| Benefits
Implementation Schedules:1.1 FormLEAF Team
：
Implementation Schedules：1.2 Select Cooperating Partners
1.10 Position Job Description No. Hire Type
Item Team to choose cooperation brands?
1.1.1 How Leader Overall operation & management Brand List
1 Old hires within SG
Action 2 weeks 10 weeks First Half year Half Year Half Year 1 Year ..
1 Product Development SGSelect cooperationpartnership
Companies with which already had build brands, BYD
1.1.2 2 Old hires or new hires
LEAF
Companies
design loan
1.1 FormGroupTeam with advanced and reliable Hybrid Electric Vehicle (HEV)
2
1.1.3 Marketing Group LEAF Loan promotion 1 Old hires or new hiresGM
Toyota, Honda,
technology
1.2 Select
1.1.4 Risk Managementwith low-end products in China control
3 Local Companies Group Qualification check, risk
Cooperating Partners 1 Old hires or new hires
Changan, CHERY
1.1.5 Interns Assist LEAF Loan team 5 Campus students
1.3 Design & Audit
LEAF Loan
2.1 Promotion
2.2 Give out loan
2.3 Risk Control
3.1 Regular
Operation
3.2 Periodical Review
Phase 1: Preparation & Phase 2: Market
Phase 3: Regular Operation
Start-up Trial

33. Concept| Product Details|Implementation |Business Model| Benefits
Implementation Schedules: 2.1 Promotion
SG official website
Online CSR website Next 1 year
3 months before Startup
Email to employees
Internal
Train tellers in branches to directly promote LEAF Loan to existing customers.
Aim Offline Promotion items in SG branches : brochures, display Continuous Propaganda and serving
Early Display Publicity materials, banners, napkins
Concept Promotion
dishes Increase popularity Attract more applicants
Direct Mailing: send ad emails through customer database of SG and cooperating partners
Promotion at branches
InternalSG Official Website: video,Conference promotion in SG’s home page lasting for one year
promotion Press E-newsletter
Online Buzz share: through renren( China’s facebook), weibo(& Car 4S twitter) whose users are
Building partnership China’s stores
mostly young citizens Direct mailing, Buzz share, SG official website
External Advertisement: car magazines &websites, Radio, TV, car forums , CSR media
How Start Press Conference,Ad/Publicity CSR media invited
and celebrities can also be
Place some SG sale employees at cooperating 4S Stores to directly do promotion
Offline
Extensive promotion at BYD Auto stores
Set promotion desks, display brochures, flyers, and other promotion materials.
Extensive promotion at BYD Auto stores
Directly promote to existing customers, Display items in SG
branches
Action 2 weeks 10 weeks First Half year Half BranchesHalf Year 1 Year ..
SG Year
Marketing Group LEAF loan Team Car 4S stores
1.1Resources TeamPublic Connection
Form LEAF Outsourced PR Co. IT professional
Display Materials Clients Data Base Display Materials
Partnership with car co. Display Materials Client data base
1.2 Select Media
Cooperating Partners BYD support
Team manager: 1 Team manager: 1 Team manager: 1
Responsible Marketing Team: 2 LEAF Team: 4 Marketing Team: 2
1.3 Design & Audit Interns :3 Interns :5 Interns :3
LEAF Loan
Budget 15,400 EU 15,000EU
8,400 EU
2.1 Promotion
2.2 Give out loan

34. Concept| Product Details|Implementation |Business Model| Benefits
Implementation Schedules : 2.2 Give out loans
1. Receive 2. Check applicants’ Qualifications 3. Give Out 4. Send green
Applicants loans driving
-Young people aged 25-35 with brochure
stable income
- Family with children preferred
-Good credit record: check with
the central bank
- Guarantee: housing, etc.
Action 2 weeks 10 weeks First Half year Half Year Half Year 1 Year ..
1.1 Form LEAF Team
1.2 Select
Cooperating Partners
1.3 Design & Audit
LEAF Loan
2.1 Promotion
2.2 Give out loan
2.3 Risk Control

35. Concept| Product Details|Implementation |Business Model| Benefits
Implementation Schedules: 2.3 Risk Control
Operational risk:
Possible risk Suggested solutions
Policy risk: risk: of monetary policy
Credit change Apply for special support of reserve ratio, provision rate etc.
Green Cars Green Cars
Market risk: price of green cars slash 1. Adjust cooperating car models
Consumers More strict evaluation to prevent default manufacturers
2. Retailers Car
Credit risk: default Strict application evaluation criteria:
mortgage, years living in one city, job hopping frequency, and car
loan insurance is required
Operational risk: Policy 1. More transparent application mechanism
Cooperation Cooperation
1.too many people apply for LEAF Loan
LEAF Loan 2. Monthly report updating evaluation results
risk:
2. use LEAF Loan to buy traditional cars
Car number plate check
Market risk:
3. partnership with car manufacturers
Diversify cooperating car manufacturers and retailers
and retailers breaks up
Société Générale
Possibility Severity
Implementation Schedules ：3.2Periodical Review
Improvement for LEAF Loan?
Update selected car models Benefits to SG Social Benefits
Seek more cooperators -Profit or loss? Whether the loss is -How much
Reset interest rates under control? environmental benefits
- How many new customers LEAF LEAF has brought?
Adjust max amount of money for LEAF
project has brought to SG? -How many people are
Loan.
-How much SG’s public image and improved in terms of
Changes for the LEAF project team? public relation are improved? their knowledge on
Whether new staff is needed, green car and lifestyle?
assessment of team members’
performance

36. Concept| Product Details|Implementation |Business Model|Benefits
LEAF Loan Cost
Type of cost Duation Cost per Totals
Month (Euro)
Start-up cost
HR Related Expenses
Staffing Training 100 200
Staff (4) 600*4
manager (1) 1,000
10,200
Startup Cost Communication Expenses
(3 months) Public Relation Fee 2,500 5,000
Marketing Promotion Expense with car 2,500 5,000
manufacturers and 4S stores
Promotion material printed for the following three 1,500 3,000
months
Others (Transportation, Telephone) 300 900
TOTAL 23,400
Operational cost
HR Related Expenses
Staffing Salaries 3,400 40,800
Operational Intern Salaries 1,000 12,000
Cost (1 year) Communication Expenses
Public Relation fees 10,000
Promotion: material printing 5,000
Others 4,000
TOTAL 71,800

37. Concept| Product Details|Implementation |Business Model|Benefits
LEAF Loan Cost
Opportunity Cost:
If SG used the money to give out normal car loans at the same interest rate as the market,
rather than LEAF LOAN, SG will gain 27000 Euro more from loan income.
So the opportunity cost for the five years ==27000 Euro
You Spend:
Startup Cost 34,400EU
+71,000EU/ year+
Opportunity Cost27,000
Less than 390,000 EU for 5 years

38. Concept| Product Details|Implementation |Business Model|Benefits
Assumptions
Category Item Comments 2012e 2013e 2014e 2015e 2016e
Maximum Amount 20 cars per month,
LOAN 4.8 4.8 4.8 4.8 4.8
Money for LEAF 20000 Euro per car
QUATA million million million million million
Loan 20*20000&12=4.8million Euro
In 2012, only 50% money is lent
4.8*50% 4.8*60% 4.8*70% 4.8*80% 4.8*90%
LEAF Loan Amount out for LEAF LOAN, and 60%,
=2.4 =2.88 =3.36 =3.84 =4.32
Lent out (Euro/Y) 70%, 80%, 90% respectively from
million million million million million
2013-2016
LOAN All green cars less than 10000
INCOME Euro, all LEAF Loan one year.
Loan Income
40% for micro hybrids,
Interest Rate
40% for mild hybrids, 6.31% 6.31% 6.31% 6.31% 6.31%
(%/Y)
20% for full hybrids.
6.47%*40%+6.27%*40%+6.07%*
20%=6.31%
Loan Cost 50% one-year demand deposit
LOAN
Interest Rate 50% one-year time deposit 1.70% 1.70% 1.70% 1.70% 1.70%
COST
(%/Y) 0.4%*50%+3.0%*50%=1.7%
Operational cost will decrease by
Operational
Operational Cost 5% each year 71800 71800 61800 64200 61300
COST
because of decreasing PR fees

39. Concept| Product Details|Implementation |Business Model|Benefits
Financial Forecast from 2012 to 2016 (Euro)
Year 2012e 2013e 2014e 2015e 2016e
Loan Income 82030 156698 184252 228422 258710
Interest Expenses 25500 29240 32980 36720 40460
Operational Cost 71800 71800 68210 64620 61030
Startup Cost 24400 0 0 0 0
Total Profit -39700 55658 83062 127082 157220
Opportunity Cost:
If SG used the money to give out normal auto car loans at the same interest rate as the market,
rather than LEAF LOAN, SG will gain 27000 Euro more from loan income.
So the opportunity cost for the five years ==27000 Euro

40. Concept| Product Details|Implementation |Business Model|Benefits
1.Concept 2.Product Details
What is LEAF Loan Green car types
Why LEAF Loan Choose cooperation brands
Innovation
Set loan interest rate
Feasibility
4.Bussiness Model
3.Implementation
LEAF Loan cost
Overall plan
Financial forecast
Implementation schedule
Communication plan
5.Benefits Risk control

41. Concept| Product Details|Implementation |Business Model|Benefits
CSR Business Line Stakeholders
First Société Générale
mover advantage SG is planning to expand Banking Industry
SG sets new CSR model, Benefits
loan business to China, Excellent public image
Help SG can lead CSR in in China
which expand business and LEAF Loan will be an Lead the industryrelationship
Good customer to further
banking industry
Excellent public image eye-catching start. implement Equator of
Increase Loyalty Principle
Good customer relationship SG gets to know its main employees
Increased employees loyalty customers (middle class) Bring new CSR practice to the
in China better industry
SG will be the first bank which provides such product. their
Inspire banks to combine
1 2.6 services with creatively.
9
Compared to gas-powered cars, each
green car cut CO2 by 25650 L/y, which
Green lifestyle to
1200
families with children
equals to planting 2.69 grown trees.
0
LEAF Loan CO2cut 3228 Better environmental awareness
307,800 ton through green driving trainings
0
Green lifestyle will influence
> cO2
CO2 emission in 2009
LEAF LOAN children when they are young
Environment Public