Amundi Sa

Good morning. I'm Cyril Maillan, the head of Investor Relations of Amundi, and it's a gorgeous day today. First, it's my birthday, so I won't tell you how much of a senile old-timer I am. But more importantly, we're here to present the nine months and Q3 results for Amundi, and I'm here with Nicolas Calcun, deputy CEO, and Aurélia Lecourtier, our CFO. We'll go through, as usual, the presentation of about 20-25 minutes and then open for Q&A. As usual, this is a video conference, so please, whenever you ask a question, please raise your hand. Whenever you want to ask a question, raise your hands virtually and open your camera so that we can have a live dialogue as much as possible. And sorry, but again, before we get started, we need to go through a short disclaimer. Throughout the presentation, we will make a number of forward-looking statements and mention forecasts. We call your attention to the fact that Amundi's actual results may differ from these statements. Some of the factors that may cause the results to differ materially are listed on our universal registration document. Amundi assumes no duty and does not undertake to update any forward-looking statements. And now I leave the floor to Nicolas.

Thank you, Cyril. Happy birthday. And good morning to all of you. And thank you for your participation in this conference to present our third quarter results. As usual, I will start this presentation with the main highlights, and then I will hand over to Aurélia, who will comment on the financial part more thoroughly before we answer your questions. First of all, I would like to highlight a few key points of this result. I will start with the strong inflows in the beginning of the year and in the third quarter. Over the first nine months, we have gathered 67 billion in net new money to manage, of which more than 15 billion in the third quarter. This comes mainly from medium to long-term assets, which are positive in both active and passive, and from retail as well as institutional investors and our Asian JVs. As of end of September, Amundi's asset under management reached a new all-time high of close to 2.32 trillion euros. They rose by close to 4% since the beginning of this year, despite the headwinds from a weaker US dollar and Indian rupee. The financial performance resulting from this business activity is healthy. Our pre-tax income rose by 4% year-on-year, to 445 million in the third quarter. This growth originates from business-related revenues, namely management fees and technology. Our costs remain under control furthermore, Q3 was the first quarter where the contribution from Victory Capital started reflecting the synergies from the deal. Finally, we saw further success in our strategic pillars, In the first nine months of 2025, all three main growth engines gathered more than 20 billion in net new assets. Third-party distribution first collected 21 billion euros, mainly in long-medium to long-term assets. Inflows were driven by ETF and positive in active management, with a high level of activity in most countries and regions. Our partnership with Standard Charter, for example, amplified its success and exceeded 3 billion in assets under management. The strong commercial momentum with digital platforms is accelerating, and a new long-term partnership has been signed with the South African digital platform Satrix, resisting a strong inflow of 1 billion on the quarter. In Asia, inflows over nine months reached 29 billion, of which 19 billion from the joint ventures and 10 billion from direct distribution. All countries in Asia contributed to these inflows, which are also well diversified by strategies across active management and passive management, as well as treasury products. ETFs collected $28 billion over nine months to total assets that exceed now $300 billion for the first time. Amundi confirmed its second place in the European ETF market in terms of asset under management as well as inflows. In the third quarter, two flagship products tracking major indices gathered the largest inflows, respectively in European and in U.S. equities. First, the Core Stocks Europe 600 ETF reached 14 billion in asset under management, making it the largest ETF in European equities. And the Core S&P 500 swap collected over 2 billion. Furthermore, we continue to innovate and new products were launched, such as the S&P 400 US Mid-Cap ETF or the Euro High Yield ETF. Finally, Amundi technology continued to record strong revenue growth at 81 million euros, approximately the same level as for the full year 2024. It's an increase by half compared to the same period of 2024, thanks to strong organic growth and the integration of Exego. Beyond strategic priorities, Amundi is achieving commercial success in its core business. And today we would like this quarter to put the spotlight on a business where Amundi is an undisputed number one, the management of employee savings schemes. Our dedicated business line, employee and retirement savings, saw record inflows over nine months with nearly 4 billion since the beginning of the year. Today manage 101 billion in assets with a market share in France of 45%. It services more than 12,000 corporate clients, multinationals and medium-sized companies directly, but also small companies via the networks of Credit Agricole and other partners. This business is in fact at Amundi the only business where we have direct access to the end client. Our service to the 4 million employee clients is comprehensive, from client servicing via telephone, mailbot, digital tools, including a transactional website and a SmartMock app, to a robo-advisor on GlidePass. We offer the full range of investment capabilities, from employee share ownership to funds and individual pension schemes. This retirement product in particular and developed in partnership with Crédit Agricole Assurance. As you can see, all these initiatives are creating a lot of value for our clients and position us well in the retirement business in France. I thank you for your attention and now leave the floor to Aurélia for the details of our financial results.

Thank you, Nicolas, and good morning, everyone. I will now comment, as usual, on our activity and financial results. Starting with our AUM, they reached 2.32 trillion at the end of September, which is, again, a new record for me. They were up over nine months, thanks to healthy net flows at 67 billion over the period, a positive market effect of more than 100 billion, but that was partially offset by a negative currency effect of 87 billion due to the depreciation of USD and Indian rupee. Year-to-date, indeed, both currencies are sharply down versus the euro, minus 11% for the US dollar and minus 15% for the Indian rupee. As a result of these various trends, our AUM increased by 3.5% since the beginning of year and by more than 2% in this third quarter. Moving now to our net inflows, Amundi's net inflows amounted 67 billion over the first nine months. with MLT net inflows totaling $57 billion and a strong contribution from passive management and ETF at $28 billion, as commented by Nicolas. This business line passed the $300 billion milestone, which is a very positive achievement. Flows were also driven by active management at $8 billion, decided to re-internalize the management of a 9 billion bond mandate. So we stated from this exit, net inflows into MLT assets would have been at 18 billion, balanced between 10 billions in passive and 8 in active. As in the previous quarter, our investment management teams delivered sustained performances in Q3. Close to three-quarters of our open-ended funds were in the first and second quartile, slightly up from the previous quarter. 242 Amundi funds are rated four or five stars by Morningstar. And 82% of our AUM outperformed their benchmark over five years. Let me add a bit of color to this performance, because this quarter, our fixed income flagships have done pretty good, such as global aggregate, corporate and European aggregate, and investment-grade credit strategies. They rank among the top of their peers. Our multi-asset strategies also posted very robust performances, as are emerging market strategies that performed well across both equity and fixed income. Beyond these highlights, the main message from this slide, as you can see, remains sustained consistency at a high level of investment performance. Looking now at our client segment and starting with retail, so retail flows were positive at 15 billion over the nine months. They remain driven by third party distributor, which posted healthy inflows of 21 billion year to date, of which 18 in ETF and positive flows in active and treasury products. Flows were also very diversified by regions with a high level of activity in Europe, namely in Germany, UK, Netherlands, but also Spain and Italy. Asia continued its momentum with 4 billion of net inflows and we gathered strong flows from high potential regions like the Middle East. We also signed, as Nicolas mentioned, a new long-term partnership in South Africa with the digital wealth platform Citrix, resulting in a flow of 1 billion ETFs. In China, JV with the Bank of China also enjoyed a strong commercial momentum with 1.6 billion gathered year-to-date. If we turn now to our international partner networks, the outflows totaled 4 billion in the last quarter and 10 billion over the first nine months. As you know, Unicredit is by far the largest of these networks, and the outflows originate from this group. As you know as well, Unicredit wants to develop their internal multi-manager platform, which explains the outflows. As many of you have asked, let me give you a few details about what Unicredit represents. At the end of September, Unicredit Networks represented a total of $88 billion in assets under management for Moondi, which is approximately 4% of a total AUM. These AUMs are mostly, as you know, invested in active management, so you should assume that the revenue margin is above our average retail margin and around 40 bps. And finally, to end on the retail segment, partner networks in France are showing positive net inflows, particularly in the third quarter with a 2.6 billion inflow. If we now move to institutional segments, net inflows were 35 billion year-to-date, with a sharp contrast between strong inflows into MLT that gathered 46 billion and outflows from Treasury products. As Nicolas already mentioned, employee saving and retirement expertise posted very strong inflows of 4 billion over the period. In the third quarter, if we restate from the exit of the 9 billion bond mandate I already mentioned, the MLC assets gathered 11 billion with a positive contribution from all segments. And it is worth noting as well that our mandate with Crédit Agricole and Société Générale insurers have collected strong inflows since the beginning of the year, including 4 billion in the third quarter, thanks to renewed interest in Euro contracts. Finally, our Asian joint venture posted net inflows of 18 billion over the first nine months, with good performances in all countries. South Korea posted $7 billion mostly in MLT assets. And China continued its recovery at $3 billion, excluding the discontinued channel business. Coming to our Indian JV, we had healthy inflows into saving plans that continued. However, the JV faced the impact of a lower currency, high market volatility, and uncertain monetary policy, which all triggered a wait-and-see attitude from clients. But despite these headwinds, the JV gathered 9 billion year-to-date and 2 billion for the Q3. As we have already highlighted many times on these calls, the expected partial exit from a big mandate with the Indian Pension Fund, EPFO, will now move forward. The outflow, as we already said, is likely to be between 30 and 40 billion and is expected to take place in Q4, but with no material impact on our net income. And finally, the U.S. distribution of victory capital posted smaller outflows, around 600 million for a share of 26%. But this is more than offset by the net inflows coming from the sales of victory strategies to non-U.S. clients, which are booked in our retail and institutional segments. Turning now to our results. So let me remind you of the pro forma restatements we have implemented since the closure of Victory in Q2. So to make comparison easier with 2025, as you know, we have restated the 2024 period. So Amundi US is not included in the revenues and costs of the 24 period and its contribution is equity accounted as for the contribution of Victory. So with that in mind, let's move now to our Q3 results on the next slide. Starting with the revenues, so our total revenues in the third quarter amounted to 815 million, up by 5% thanks to healthy growth in business-related revenues. Net management fees were up 3% compared to the same quarter last year. thanks to a strong asset gathering in the past 12 months and despite the drop in the US dollar. Our technology revenues were also up by 49% at 29 million, thanks to both a healthy organic growth and thanks to the contribution from Exego. Performance fees were also up year on year, thanks to the good performance fees I detailed earlier. And finally, our financial income is in line with the decrease in Euro short-term rates. If we turn now to the cost, so as you know, every year Amundi offers to its employees the possibility to invest in new shares issued at a discount. We call this operation WeShare. And this discount results in a charge in our P&L of $17 million that will be accounted in Q3. Last year, this charge was booked in Q4, and therefore, the charge rebooked in Q3 this year is distorting the comparison with Q3 24. So, restating for this impact, our cost would have been up by 4%, reflecting the integration of Exigo, and our investment to nurture our future growth. It also reflects our best-in-class cost efficiency with an adjusted cost-income ratio at 53.5%. This quarter, we also implemented our optimization plan that resulted in, first, the merger of Amundi Affiliates CPR and BFT in France, which is effective since October 1st, And second, the reorganization of our multi-asset teams across all Europe, which is underway. The restructuring costs of this plan are booked in this Q3 for an amount of 80 million, and they are excluded from our adjusted P&L. Therefore, they do not contribute to the cost evolution of the quarter. As a reminder, the aim of the plan is to generate 40 million in savings from 26 to be reinvested in our growth business. Finally, our adjusted profit before tax was up 4%, as you can see on the slide, at 450 million. Let me take you through the key drivers of this growth. So first, the contribution of our Asian JVs was up 3%, with China and Korea posting very strong growth in their contribution. And the contribution from SBIMF that suffered headwinds from the drop of the Indian rupee remains still healthy, with management fees growing more than 20% year-on-year in the JV in local currency. The equity accounted contribution from our U.S. operation was at 33 million over the quarter. As a result, as you know, of the lag by one quarter in the recognition of victories results, Q3 contribution includes the first synergies from the partnership. And this contribution also benefited from the adjustment of 4 million between the estimates used in Q2 and the publication of Victory's Q2 results. So, all in all, the adjusted net income of Amundi was at 340 million, including the tax surcharge over the quarter of 9 million. Let's have now a final look on our financial performance year-to-date. So first, our adjusted revenues reached $2.5 billion. They were up 5% and driven by net management fees up 4% and technology revenues at $81 million, an increase of almost a half. Performances were also up 7% year-on-year. Second, this revenue growth, as you can see, was complemented by our operational efficiency with an adjusted cost-income ratio at 52.8 over the period. Expenses were up 5% if we restate from the employee scheme charge. as I explained earlier, and they are in line with the gross revenue. Third, the contribution from our Asian JV was almost $100 million, up 6%, and the contribution from Victory Capital up by 8%. All this translates into the growth of 4% of our adjusted pre-tax income, that reach $1,340,000,000. Excluding the tax surcharge in France that totals 63 million for the nine months, our adjusted net income would have been over 1 billion, up 4% versus 24. I will now hand back to Nicolas for concluding remarks before we take your questions. And I thank you very much for your attention.