Strategic ambitions for 2018-2020

On the occasion of the publication of its annual and Q4 results, Amundi presents today its new strategic ambitions for the 3 years to come.

Amundi's ambition is to become one of the leaders in the global asset management industry, based on:

• the quality of the expertise and services it offers to its clients,
• its strong growth and profitability trends,
• its position as a committed financial player.

Amundi's successful growth momentum since its creation and its profitability reflect the effectiveness of its business model, which is based on the following principles:

•  a client-centric organisational structure, both global and local,
• a policy of innovation allowing to bring to customers a wide range of expertises matching their expectations, 
• robust infrastructure (particularly in IT),
• an entrepreneurial spirit. 

For the 2018 to 2020 period, this strategy and this organization remain unchanged. Nevertheless, the integration of Pioneer has reinforced this business model in three key dimensions: distribution capabilities, expertises and talents.

Amundi is thus well positioned to continue its profitable growth, with two axis:

• Consolidate its position as a reference partner in the Retail segment through its savings solutions for networks and distributors.
• Accelerate its development in the Institutionals segment.

Moreover, Amundi also plans to strengthen its service provider positioning (IT, market access platform…) in order to cover the entire value chain.

As a responsible and recognized financial player, Amundi has made of social commitment one of its fundamental pillars since its creation in 2010. This policy will be continued in 3 directions:

• Mainstreaming ESG criteria in its investment policies, in addition to financial criteria.
• Strengthening its Impact Investing policy
• Continuing its engagement approach towards issuers and its specific initiatives focused on climate change: JV with EDF for Energy transition, partnership with IFC¹ on green bond, etc.

As in previous years, Amundi’s strategy is based on organic growth, which explains most of the AuM increase since  2010.

However, targeted acquisition opportunities may be seized, provided they strengthen the business-model and meet the Group's financial criteria.

The financial objectives set for the 2018–2020 period are upgraded versus those announced at the IPO, and are the following:

• Activity: total net inflows of at least €150bn over 3 years (vs. €120bn for the previous period of 2016–2018), of which €60bn in Retail, €60bn in Institutionals and €30bn in JVs;
• Operational efficiency: cost/income ratio ≤ 53% (vs ≤ 55% previously), which includes some reinvestment aimed at fueling future growth;
• Profitability: double the 2015 net income (the year of the IPO):
  • accounting net income ≥ €1bn in 2020,
  • adjusted net income ≥ €1.05bn, amounting to average annual growth of approximately 7% between 20172 and 2020.
• Financial structure and dividend: Pay-out ratio at 65% of net income (excluding integration costs).

Yves Perrier, Amundi's CEO comments:

As in 2016, in 2017 Amundi has exceeded the business and financial targets that were set when it was listed in late 2015. These good results confirm the strength of Amundi’s business model, which has been further boosted by the integration of Pioneer in three key areas: distribution capacity, expertise and talent. In this context, the new targets for 2018-2020 provide for an acceleration in growth and profitability, with in particular a two-fold increase in net income in relation to the level seen at the time of Amundi’s listing.

_{1. International Finance Corporation, filiale de la Banque Mondiale
2. Net income for 2017 combined and adjusted, including a normalised level of financial income}