Societe Generale SA Announces ALD’s Proposed Acquisition of LeasePlan M&A Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Yes. A couple of questions from my side. Firstly, on those shareholder agreements you put in place, I just wondered what does that involve exactly? Is it just about the lockup or just wondering if SocGen has right to first refusal if some of the other shareholders maybe want to sell their shares? So just some background there. Or is there anything kind of specific that we need to be made aware of just in those shareholder agreements? And then on the 13% CET1 ratio for the enlarged ALD, just wondering, do you -- it sounds like you consider that to become like a hard minimum because I was wondering why you don't let it slip a little bit lower at least initially on closing and then let that capital build up -- rebuild over time just given how profitable the enlarged business is expected to be. So just your thoughts on how that 13% CET1 ratio, why does it need to be that high at least initially on closing.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : So firstly, on the banking status for ALD going forward, I'm curious why you didn't adopt the format used by BNP for Arval, where you classify it as a nonbanking financial sector entity that allows you to deconsolidate it and risk weight the book value. That would seem to be a better capital treatment from SocGen's perspective. Is there a reason why that wasn't an available option for you or that you chose to go with the banking entity status instead? And would you rule out pursuing that deconsolidated financial sector entity status in the future? And then second question, on the payout ratio going forward, I mean it's slightly counterintuitive that your profitability is enhanced by this deal, but you don't see greater opportunity to return capital. So is the 50% a ceiling for you for the next 3 years? Or would you consider going over that if profitability and capital ratio has allowed?