1. finance
2. bank

JANUARY 2015
46
IN
SIDE
THE MAGAZINE OF
CRÉDIT AGRICOLE CIB
EMPLOYEES
06 - IN THE SPOTLIGHT
02 - IN BRIEF
Rail sector: a high speed success
Economy, business, people
10 - EXPLANATION POINTS
Lean management,
a collective approach
11 - DEAL
2i Rete Gas,
birth and growth
12 - IN MOTION
Group financial control:
closing of accounts
14 - IT’S YOUR TURN
The managers listen to you
15 - NEWSSTAND
In partnership with
Harvard Business Review
16 - EXPERT WITNESS
Thomas Hellwig,
professor of
organisational behaviour
Karl-Ulrich Clausen, Sophie Loiodice and
Olivier Desfontaines.
EDITORIAL
january 2015
ISSUE.46
IN BRIEF economy
Eurozone
THE ECB IN THE DRIVING
SEAT OF THE EUROPEAN
STABILITY MECHANISM
KEEPING OUR
MOMENTUM
2014 has concluded in a way consistent with our
hopes and goals. The Credit Agricole CIB team
successfully and promptly launched the development
phase of our medium term plan. On behalf of
the Bank’s general management and myself, I would
therefore like to thank you very warmly and wish
you and your loved ones a very happy new year.
In this issue, the spotlight is on our Rail teams that
have adopted an original approach to share
their best practices and thus better serve our clients.
The partnership with Sumitomo Mitsui Trust Bank
in shipping is also a good example of an innovative
initiative. Finally, concerning support functions, we
have announced the launch of the first “post trade”
IT platform with FIS. A proof of our ability to reinvent
our business!
Since November 4th the European Central Bank (ECB)
has officially taken on its new responsibilities as the
single banking supervisor for the Eurozone. It will
directly control the 120 largest banks, which represent
more than 80% of banking assets in the EU. The creation of the single supervisory mechanism (SSM) is a
major new development for the Eurozone’s integration
process. It stems from the strong political will expressed by heads of State and Government during the
summer of 2012, which led to a major work project. The
SSM’s main aims are to ensure the stability of the
banking system and encourage financial integration. For
this the ECB can rely on its own resources and on the
expertise and tools of national central banks and
regulatory authorities.
On the basis of this coordination between States,
supervisory standards will be defined for all the banks
in the Eurozone (nearly 3,500). This gradual transfer of
authority takes place after the publication at the end of
October of banks’ Asset Quality Review and stress
tests. The idea is to start on solid foundations and to
restore trust in the Eurozone’s banking system. It is a
big challenge and the ECB will have to steer clear of
several pitfalls, by avoiding in particular any conflict of
interest in steering monetary policy. In a period of
sluggish growth in the Eurozone, the stakes are high.
Securitisation
REVIVING CREDIT IN
THE EUROZONE
JEAN-YVES HOCHER,
CHIEF EXECUTIVE OFFICER OF CRÉDIT AGRICOLE CIB
IN
SIDE
Head of publication: Anne Robert. Editorial Director: Françoise Haegel (+ 33 1 41 89 15 89).
Chiefs editor: Valérie d’Arcangues (+ 33 1 41 89 11 55), Nathalie Chevalier (+ 33 1 41 89 98 43).
Communications correspondents: Eva Berchner, Maryvonne Forsans, Mary Guzman,
Joyce Lam, Marie Leonard, Virginie Ourceyre, Éric Pons, Ève Troja. Edition: Crédit Agricole
Corporate & Investment Bank, 9 quai du Président Paul-Doumer, 92920 Paris-La Défense
Cedex. Photos : Shutterstock ; Zoneteen/Shutterstock ; Raphaël Demaret ; Bert Bostelmann/
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Translation : Ronald Wood. Our thanks to : Frédérik Ducrozet. Design and production :
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Printed by www.etoile-imprim.fr with vegetable-based inks on fully recycled paper
The European Commission took several
initiatives in 2014 to encourage the issuance
and distribution of securitised assets that
are backed by loans to the real economy.
While preserving the characteristics of these
European “ABSs” – on average less risky and
more transparent than their US counterparts
– the idea is to develop securitisation as an
alternative financing method (in particular for
SMEs) while making space for new financings
in banks’ balance sheets. This is a way of
replicating recent ECB initiatives in these
markets.
3
IN BRIEF business
PARTNERSHIP
A NEW INITIATIVE
IN SHIPPING
Financing sea-going commercial
ships is the fund’s aim.
Slovenia
SOVEREIGN
LOAN
S
umitomo Mitsui Trust Bank (SMTB)
and Crédit Agricole CIB launched on
December 5th a USD 1 billion joint
shipping fund called Sea Bridge Finance Ltd. Its purpose is to participate in the
financing of sea-going commercial ships.
CA CIB will be the exclusive arranger of ship
finance transactions on behalf of the fund.
SMTB will provide up to 80% of the fund’s financial resources while the Bank will provide
its ship finance expertise and access to its
international base of shipping clients. The
Thibaud Escoffier’s
point of view
“ In collaboration with Debt Opti-
misation & Distribution (DOD) and
with the active support of general
management, we have been working
for the last twelve months on this
new shipping debt fund with SMTB,
transactions brought to the fund will be selected according to three criteria: a list of
ship owners preapproved by both parties, a
certain type of ships, a defined risk profile.
The two banks control the fund on a 50/50
basis and will derive many benefits from this
partnership. For SMTB, it is a way to develop
internationally and improve its shipping expertise. CA CIB will be able to increase further its presence in shipping, a market in
which the Bank is already a world leader,
while optimising its capital use.
a totally innovative concept for the
market. Our partner is a leading
player in Japanese shipping but has
neither experience nor commercial
network on an international scale.
Crédit Agricole CIB, relying on the
strength of its seven dedicated shipping commercial platforms (Hong
Kong, Athens, Oslo, Hamburg, London, Paris, New York) and more
An innovative initiative
with SMTB, and the
pillar of our distribute
to originate strategy for
shipping in 2015
than 200 historic shipping clients,
brings to SMTB a unique international scope. The fund will offer our
Bank and our clients a privileged
distribution channel for new shipping transactions. This new venture
will strengthen CA CIB leading position while optimising our lending
capacity and the deployment of our
capital. This project is one of the pillars of our distribute to originate
strategy for 2015.”
Thibaud Escoffier
Global head of shipping, SFI.
On October 28th, Crédit
Agricole CIB carried out a
7-year EUR 1 billion bond
issue as joint book runner
and mandated lead arranger
on behalf of the Republic
of Slovenia. This is the third
transaction of this kind
launched by Slovenia in 2014,
and the first managed by
CA CIB since March 2011.
The great success of this
transaction demonstrates the
confidence of investors in the
efforts made by Slovenia
to recapitalise and stabilise
its banking system, which
was confirmed by the results
of the AQR and stress tests
published on October 26th
2014.
Tweet Line
AWARD
The “Deal of the year” 2014 will be
awarded on February 18th during
the annual results ceremony.
HUMAN RESOURCES
The objectives setting campaign
is open until February 13th.
MOBILITY
LEARN MORE
InsideLive
MyJobs, which replaced
@toutjob, offers new functionalities.
Go to https://ca-myjobs.com
IN BRIEF business
january 2015
ISSUE.46
Automobile
A successful new collaboration
between TMCC and CA CIB.
LONDON, NEW YORK, TOKYO
SUPPORT TOYOTA
Crédit Agricole CIB was mandated by
Toyota Motor Credit Corporation (TMCC),
Toyota’s American financing subsidiary,
to be an active book runner for a 7-year
EUR 1 billion bond issue. The Interest
Rates Derivatives (IRD) teams executed
the swap linked to this transaction. DCM
London also placed GBP 50 million and
300 million Hong Kong dollars in the form
of two private placements following a
reverse inquiry*. The cooperation
between many teams made these
successful transactions possible: Debt
Capital Markets (DCM) New York and
London, Securitisation New York, IRD
New York and London and Coverage in
Tokyo, London and New York. CA CIB has
entered a new phase of its relationship
started 4 years ago with TMCC, one of
the Bank’s prime clients.
* Situation in which investors approach a company to convince it to carry out a bond issue which
they purchase.
AQR
8 000
Is the number of days
spent by CA CIB staff responding to the regulatory
authority as part of the
Asset Quality Review
(AQR).
32
IT
FIS, A PARTNER
FOR GROWTH
Crédit Agricole CIB and FIS just created the first
global post trade IT platform covering all derivative
products in the capital markets. This partnership will
allow CIBs to increase their efficiency and reduce
their costs by mutualising their activities and
resources. CA CIB will thus be able to focus more
on its new developments. FIS was not a random
choice: the company is n°1 worldwide in terms of
technology solutions, advice and externalisation for
the banking sector (staff 40,000 people). FIS will be
CA CIB’s long-term partner for its IT transformation
strategy.
LEARN MORE
www.fisglobal.com
THE FIGURE
EXPORT FINANCE RANKING
Projects selected,
in France
and in Asia,
for “Solidaires by
Crédit Agricole CIB”.
Crédit Agricole CIB
ranked
worldwide
th
for the first half of 2014.
Focus 2016
STAYING THE COURSE
During Bank of America-Merrill Lynch’s
19th annual conference on October 1st in London –
which brought together the leaders of banking and
insurance companies – Jean-Yves Hocher expressed
his satisfaction at Crédit Agricole CIB’s good results
in reaching the goals of its Medium Term Plan. During
the first half of 2014 the commitments of Focus 2016
were kept, confirming the relevance of our debt
house model, which is very focused on its client
portfolio, and with market activities dedicated to
these clients. Between 2013 and 2014 revenues
increased by 13% from semester to semester and
by 19% from quarter to quarter, while expenses
remained stable. In the coming months, even if the
results for the second half are looking good, the
gloomy economic environment in Europe and the
regulatory context prompt us to be watchful.
China
THE PRIVATE SECTOR
OPENS UP TO FOREIGN
BANKS
China Hongqiao, China’s second largest private
aluminium producer, is determined to develop
internationally and to secure its bauxite supply, and
required CA CIB’s help for two transactions in 2014.
CA CIB set up a 3-year USD 580 million-syndicated
loan as joint book runner. Fifteen foreign banks were
involved in the financing, making it one of the most
successful transaction in the Chinese private sector.
The Bank was then mandated to be one of the six
book runners for China Hongqiao’s high yield bond
issue. The order book reached USD 6 billion, one of
the highest oversubscriptions for a Chinese issue.
These two deals were made possible by teamwork
between various business lines, DOD and GMD in
particular.
5
IN BRIEF people
Hong Kong
Solidaires
120 YEARS, LET’S CELEBRATE!
CHEERING UP
IN NEW YORK!
During the month of October
CA CIB supported two charity
events in New York. There was great
enthusiasm during the Making
Strides Against Breast Cancer Walk.
Twenty-two people from the Bank
volunteered for a five-mile walk
through Central Park against breast
cancer. 14,170 dollars were raised
during the event for the American
Cancer Society. The New York
Cares Day was also good-humoured. 70 members of staff
gathered in a Queens’ high school
(see picture) to improve the pupils’
daily work environment by
renovating classrooms, planting
the garden and reorganising the
rooms where text books are
stored… This was a generous
initiative demonstrating the solidarity of CA CIB New York’s staff!
Régis Monfront and Marc-André Poirier
surrounded by (from left to right)
Bryan Ho and ICBC Macau representatives:
Dora Lei, Tiffany Lai, Huang Meng Nan
and Miles Lau
Crédit Agricole CIB – or Banque de l’Indochine
to be more precise – has been established in
Hong Kong for more than a century, as it was
founded in 1894. The birthday was celebrated
in the Four Seasons hotel on November 3rd.
Nearly 400 clients and 70 members of staff
were invited to a warm and friendly cocktail
and enjoyed the very popular Crystal Girl Band
Gender equality
FINANCI’ELLES SURVEY
Good news, gender equality “is now viewed as
something that increases performance” of
companies in the banking and insurance
sector. This is what can be learnt from a survey
organised by Financi’Elles, a federation of
executive women’s company networks in the
financial sector. 92,000 executives from
11 companies were questioned in June 2014
for the survey whose results were published in
October. It shows “significant progress, in
particular in the confidence men and women
within the industry have in their companies’
capabilities of appointing women to positions
of responsibility”. However, only 37% of
women think their situation has improved
since 2011, when the first survey was
conducted.
during the evening. This group from Beijing,
accompanied only by traditional instruments,
gave a performance during the opening
ceremony of the Beijing Olympics in 2008.
LEARN MORE
Anniversary video
on InsideLive.
I,
YOU,
SHE
WE,
THEY…
CATHERINE
CHEDRU-REFEUIL
is responsible for
Capital Market IT
since October 1st
2014.
LAURENT PROUTIÈRE
was appointed
Senior Country
Officer for Taiwan
on November 1st
2014.
AYMERIC DE REYNIÈS
became general
manager of UBAF
on July 1st 2014.
To see, to read, to do
“MAYAS”
A FASCINATING EXHBITION
Until February 8th the Quai Branly
museum is showing “Mayas”, an
exhibition supported by CA CIB.
LOUISE TALLERIE
WOMEN STUDENTS AWARD
The final selection of this third
edition takes place on February 5th.
This award was created to pay
homage to the first woman director
of a Crédit Agricole regional bank
and aims to encourage the rise of
women executives.
TO LEARN MORE ON DEBT
Deleveraging? What Deleveraging?,
Geneva Reports on the World
Economy 16, ICMB, September 2014.
Downloadable on www.icmb.ch
IN THE SPOTLIGHT
january 2015
RAIL SECTOR
A HIGH SPEED
SUCCESS
How do you remain a leader in a very competitive market? By bringing together the experts
of the various business lines and regions of
the world in order to better serve our clients.
A good practise set up a year ago by
Crédit Agricole CIB’s Rail sector coverage.
A
ny industry undergoing dynamic market
change, such as the rail sector in Europe,
provides us with a range of opportunities.
Structured Finance (SFI) developed a rail
franchise, originally set up in the United
States in 2003 and in Europe in 2005, like
an “internal start-up” in the words of Olivier
Desfon­taines, who is responsible for Euro­
pean Rail financing and overall coordina­tor
of the Rail sector. The Bank is today one
of the leaders in rail financing and can go
even further through close coordination
with the sector key business lines.
RAIL AT A HISTORICAL
TURNING POINT
Inspired by the work of economists like
Jean Tirole, Nobel Prize in Economic
Sciences for 2014, the deregulation of
regu­lated sectors – energy, telecoms, and
rail in the last 15 years – offers growth op-
portunities for the European economies.
The opening up of markets to competition
for­ces historic rail operators (SNCF for instance) to change, whilst also encouraging
the arrival of new players, e.g. alternative
operators or lessors of rolling stock. Dere­
gulation can therefore provide interesting
opportunities for M&A advisory in the rail
sector, and this is well illustrated by the
Railpool transaction (see “Case study”).
On top of that, the economic crisis has led
to a sharp reduction in governments’ abili­ty
to provide public financing for investments
in the rail sector, whilst at the same time
fleet renewal requirements on sometimes
ageing rolling stock are very large. Significant investments are required for instan­ce
to replace the French intercity trains (or
TET, “trains d’équilibre du territoire”) or
the regional trains in Italy and Spain. In
this context, and given the reduced
amount of public financing available, priva­
te financing sources are required to
bridge the financing gap. This is good
news as new investors, also clients of the
Bank – insurance companies in particular
–, are interested in this asset class. The
rail sector is thus a natural candidate for
the distribute to originate model, and
more generally being a capital-intensive
industry is attractive for bank lending and
bond financing activities.
CA CIB, LEADER
IN RAIL FINANCING
The Bank first built an experienced team of
specialists, some of whom have worked in
the rail industry prior to joining CA CIB. The
SFI Rail franchise was then developed
by capitalizing on Crédit Agricole CIB’s
strengths: a long experience in asset based
finance – aviation and shipping in particular
– and a strong client relationship with some
of the industry’s large key players. On a
case by case basis the SFI Rail team also
worked in good partnership with the SFI Infrastructure team, for instance for the Rolling Stock Leasing Companies (ROSCO) in
the United Kingdom. The Bank’s leading position in rail financing in Europe and in the
United States has been recognised by the
...
7
ISSUE 46
3 QUESTIONS FOR
JOSÉ ABRAMOVICI
Global Head Asset Finance Group
W
hat are the sector’s
perspectives?
The sector in Europe
is going to go through changes similar
to those I experienced when I was
working for Air Inter: it is opening up
to the ownership of private investors,
new foreign and low cost competitors
are appearing, leasing is becoming
more frequently used allowing public
companies to lighten public debt.
The opening up to European
competition will favour banks that
offer all kinds of products, with
mixed teams coming both from the
industry and banking sectors.
What did sector coverage bring to
the rail industry ?
The Rail sector is relatively more recent
than the other sectors of the Asset
Finance Group, and will continue
to develop. This requires the presence
of local sector coverage to position
the bank early on in the process, close
to authorities, operators, manufacturers
etc., and to be able to identify
our clients’ strategic needs.
What are the sector’s good practices?
The idea of a community close to local
clients and product neutral is the key
to success and industry leadership.
From left to right :
Top : Elisa Lajonchère, Maria Rodriguez,
Brian Bolotin, Thomas Jean, Thierry Collin, Xavier
Fessart, Alexandre de Lestrange, Sophie Loiodice,
Philippe Bestel, Ignacio Sanchez de Lamadrid, Antoine
Gleizes, Karl-Ulrich Clausen, Alessandro Marchesini.
Bottom : Anne Mazière, Kinnary Armstrong,
Dominique Duval, Jean-Marc Nguyen, Quentin Galmiche,
Marion Thorel, Camille Amann, Xavier Bérod.
Centre : Olivier Desfontaines.
Rail Finance
House
of the Year
2014
16
BILLIONS
EUROS
KEY FIGURES
•
CA CIB won the award for the
third time, having received it
previously in 2011 and 2012. Source:
Global transport finance.
It’s the amount arranged
since 2005.
•
.
IN THE SPOTLIGHT
january 2015
GLOSSARY
Alternative operator:
new operator offering rail
transport services for
freight and passengers as
part of a concession with
an authority or directly in
the market (open access).
Lessor of rolling stock:
player offering lessor
solutions for rolling stock
(freight wagons, locomotives and passenger
trains) to rail operators.
Trains d’équilibre
du territoire (TET):
new trains meant to
replace the intercity
Corail and Téoz trains
on the classic lines
(i.e. non high speed lines).
In 2014, CA CIB was very active: thirteen
transactions were closed representing
more than EUR 4 billion in financing.
...
market. Global Transport Finance awarded
Crédit Agricole CIB the Rail Finance House
of the Year in 2011, 2012 and 2014.
BIRTH OF THE “RAIL
COMMUNITY”
Since the European liquidity crisis of
2011-2012, the financing business has
deeply changed. Today clients from the
rail sector, – whether public or private
operators, rolling stock lessors or investment funds – have no preconceived ideas
on the way to finance their investments:
with bank or bond debt, private or public
issuance, rated or not, secured by the assets or not, with a guarantee or on a limited recourse basis, etc. The new mission of the Bank is to rapidly offer tailor
made solutions to these clients that might
combine several product lines.
It is therefore now a must to coordinate
all of the Bank’s resources (coverage and
business lines) in the rail sector to better
anticipate our clients’ needs and offer the
most relevant solutions. To reach this objective it was necessary to bring together
the skills of the CIN and SFI Senior Ban-
kers in charge of the key rail clients, and
of the representatives of the business
lines identified as strategic for the rail
sector: GIB, DCM public and private fixed
income, DOD distribution and rating advisory,
and SFI. The Rail community was born!
MODUS OPERANDI
The coverage organisation aims to foster
local relationship by increasing the presence in a number of countries. Ten Senior
Bankers work from Paris, Frankfurt, London,
Milan, Madrid, New York and Hong Kong.
With the representatives of business lines
that are strategic for the sector, the idea
is to “industrialise” our good practises
and to identify as early as possible the
clients and projects for which Crédit Agricole CIB could offer real added value. By
frequently sharing relevant information
within the community, Senior Bankers
and business lines are aware of the market’s specific characteristics and are becoming in a way rail sector specialists. In
this process the SFI Rail team plays a
central and coordinating role.
Each opportunity is evaluated to satisfy
Since the
European
liquidity
crisis
of 2011-2012,
financing
business
has deeply
changed.
the needs of the client as well as the Bank
without any preconceived idea on the solution or the product offered. In June 2014 for
instance, the Bank was mandated by Alpha
Trains as debt and rating advisor to establish
a EUR 1.5 billion financing, including both
banking debt and structured bond debt (private and public placement).
SUCCEED TOGETHER
Crédit Agricole CIB has been very active in
the rail sector in 2014, closing 13 transactions representing more than EUR 4 billion in
financing. The diversity of these transactions
is a sign of the Rail community’s good health:
eight SFI rail transactions, but also four debt
capital markets (DCM) transactions (one private placement, one public bond issue and
two securitisations) and a Global Investment
Banking (GIB) transaction.
The Rail community has all the skills required to capitalise on the sector’s deregulation and succeed thanks to enhanced cooperation between the various business lines.
Furthermore, its collaborative approach
contributes to making everyone’s job even
more exciting. •
9
ISSUE 46
Case study
Railpool, a major
transaction in Europe
I
n 2014 Crédit Agricole CIB acted as
exclusive advisor to the Oaktree
Capital Management investment fund
for the acquisition of Railpool from the
German banks HSH Nordbank AG and
Kfw IPEX-Bank GmbH. The Bank was also
lead arranger for the financing of Railpool: EUR
420 million were provided by the two German
banks, while Crédit Agricole CIB’s participation was EUR 75 million.
This is a major transaction in the European
market for the leasing of rolling stock and
puts Crédit Agricole CIB in a leading position
for M&A transactions in the European rail
sector. It illustrates the efficiency of an
organisation based on geographical proximity:
sector coverage in Germany was indeed
decisive for the success of this transaction
which required no less than two years of work
and demonstrates the exemplary cooperation
between SFI and GIB’s Rail teams.
Based in Munich in Germany, Railpool is
one of the European leaders in locomotives
leasing and has a fleet of 100 electric
locomotives and eight electric multiple units.
Railpool’s strategy supported by its
shareholder Oaktree is to grow rapidly, both
organically and through acquisitions.
Crédit Agricole CIB is the ideal partner to
accompany Railpool in its future development.
Nicolas Petrovic, general manager of Eurostar.
FOCUS ON...
Nicolas Petrovic, general manager of Eurostar since
April 2010, tells us about his privileged relationship
with Crédit Agricole CIB.
T
LEARN MORE
InsideLive
he story of Eurostar
is not all smooth
sailing. Created in
1994 after the
Channel tunnel
was built, Eurostar started as
a commercial brand, before
becoming a private company
in 2010 (owned 55% by SNCF,
40% by the British government
and 5% by the Belgian
railways). Over the years and
despite the many events of its
short history (financial crisis,
fire in the tunnel…), the
company was successful in
its bet to seriously challenge
air transport, and now has a
nearly 80% market share on
the London Paris route.
“Crédit Agricole CIB is one of
Eurostar’s privileged partners,
participating in the financing
of the acquisition of 10 new
trains from Siemens and in the
complete renewal of its
existing fleet”, explains Nicolas
Petrovic. The acquisition of the
new fleet of trains represents
a EUR 550 million investment
in which Crédit Agricole CIB
played a major part in July 2011
as a lead manager, arranger
and facility agent. This very
visible transaction in the
market confirmed the Bank’s
position as a leading player in
the European rail financing
market.
Eurostar just celebrated its
20th birthday. It is growing
rapidly with a record
145 million passengers and a
new fleet coming soon. “I have
great ambitions for Eurostar,
we will develop in high speed
cross border rail by taking
advantage of the deregulation
that is spreading through
Europe”, explains Nicolas
Petrovic with enthusiasm.
Currently serving London,
Paris and Brussels, the
company plans to widen its
offering to Geneva (via Lille) at
the end of 2014, Marseille (via
Lyon and Avignon) in May 2015
and Amsterdam in 2016.
Crédit Agricole CIB will stand
at its side.
EXPLANATION POINTS
january 2015
ISSUE.46
1
A COLLECTIVE
APPROACH
The implementation of Lean Management started in
September 2013 as an experiment within Global IT.
Here is an overview of this management system before
its extension to the whole Bank.
Its origins
Lean management was
developed in the 1980’s
by researchers from
the Massachusetts Institute
of Technology (MIT) following
their observation of Toyota’s
manufacturing organisation.
This company management
system is based on principles
that revolve around client
satisfaction and optimising
the value chain by eliminating
waste during the production
process. The Lean approach
was since then adapted to
the service sector.
Lean
MANAGEMENT
2
The aims of
this approach
The lean management
approach aims to increase
collective performance by
setting up management
principles that are shared at
all levels of the organisation:
exchanging views on performance, making initiatives
transparent, and developing
staff potential. Seeking to
improve continuously
(measuring results, launching
corrective actions and solving
problems) is the basic
guideline of this method.
3
Lean, practically
speaking
Its implementation has
an impact on the course of
a day’s work: daily meetings
to organise the day with a
white board; time reserved
to solve problems; moments
set aside between manager
and member of staff for
one-to-one meetings
dedicated to defining action
plans; sharing good practices;
improving processes, etc.
4
Each organisation
has its own lean…
Lean management is a global
approach that requires time to
settle in a company. It is
based on two fundamental
pillars: the progressive
reduction of waste and the
personal development of
members of staff. This is what
makes it strong and lasting.
Once theses two principles
are accepted, each organisation adapts them to its own
specific characteristics.
DEAL
11
FOR CA CIB
JACQUES DE VILLAINES
GLOBAL HEAD OF SFI
“ This deal
illustrates our
capacity to
combine
financings
and bond
products while
leveraging on
our strong sector expertise.
Congratulations
to the teams. ”
TAILOR MADE SUPPORT
2i RETE GAS,
BIRTH AND GROWTH
For five years,
CA CIB has been
2i Rete Gas’
privileged partner
in its growth.
FOR CLIENTS
Supported by Crédit Agricole CIB teams for five years, the gas distributor
made a successful start in the debt markets in July 2014.
T
his bond issue is the end
of a process started in
2009 with the creation by
F2i, the Italian infrastructure
investment fund – partnering with
Ardian –, of the second gas distri­
butor in Italy. This was made pos­
si­ble by the acquisition of ENEL’s
activities in 2009, of E.ON and GDF
Suez in 2011. With its 3.8 million
clients and 57 000 km of pipelines,
2i Rete Gas is now one of the
leading gas distributors in Italy.
An appropriate offering
For the three acquisitions and for
the purchase of the minority stake
held by ENEL, Crédit Agricole CIB
acted as a lead manager but
also as a bookrunner, coordina­
ting bank, and documentation
and hedging agent. The 2014
bond issue was carried out as
part of a EUR 2.5 billion complete
refinancing of the company’s
debt. The Bank was lead
manager and joint book runner.
The transaction was made of
a double tranche of EUR 1.35
billion which was very well
received by investors of many
countries
and
more
than
twice oversubscribed, and of a
EUR 1.75 billion bank loan.
SUMMARY
Thanks to its in-depth
understanding
of the market and the
strong mobilisation
of its teams, Crédit
Agricole CIB supported
F2i, one of its large
clients, in creating
a new leader for gas
distribution in Italy.
A fruitful
cooperation
This successful transaction re­
wards efficient teamwork invol­
ving several of Crédit Agricole CIB’s
business lines and support func­
tions. The cooperation between
Structured Finance (Energy & In­
frastructure Group) and Debt Ca­
pital Markets origination in parti­
cular, was crucial for the Bank.
We were thus in a position to
offer the best refinancing solu­
tions to 2i Rete Gas with a ba­
lanced combination of several
other banks and debt markets.
.
CARLO MICHELINI
F2i, GENERAL MANAGER,
CHIEF INVESTMENT
OFFICER
“ CA CIB was
a fundamental
partner for F2i
in creating
the largest
independent
gas distributor
in Italy. ”
IN MOTION
january 2015
PARIS
2
Georges Sarfati, responsible
for CA SA’s accounting
sub-contracting.
2
Product Control for Market Activities.
Benoît Bertrand and his team.
GROUP FINANCIAL CONTROL
CLOSING
OF ACCOUNTS
1
Product Control
for Financing Activities.
Valériane Goetz.
1 • D1* – D5
The monthly work to
ensure accounts are
reliable begins! The
Product Control for
Financing Activities
(accounting and management control) get to work
in close cooperation
with IT, back offices and
business lines. A daily
team update optimises
work capacity during
theses peaks of activity.
2 • D1 – D5
The Product Control
for Market Activities
teams closely monitor
the flow of data through
IT systems. They must
ensure that accounting
results are accurate and
* D: working Day.
Each month the closing of accounts is a
crucial moment. We focus here on the
rigorous process set up by the Bank.
analyse the performance
of business lines. A daily
update with Risk and
Permanent Control
(RPC), Global Operations
(GOP) and Global IT
(GIT) teams ensures
the accounts of
Crédit Agricole CIB,
Crédit Agricole SA
and LCL are reliable.
3 • D1 – D5
All over the
international network
(here, in Germany) teams
are mobilised and
prepare the data that will
be sent to Consolidation
for accounting and to
the Central Analysis and
Reporting (ARC) team
for management control.
5
Financial Information
France. Olivier Goes
and his team.
13
ISSUE.46
6
Consolidation.
Laurent Denis and Silvère Marko.
4
Central Analyses and Reporting.
Ana Maria Ciochina and Valérie Guyon.
4 • D6 – D10
5 • D6 - D10
The management documents of
all entities reach the Central
Analysis and Reporting team.
It thus can close management
results for each business
line and analyse the data, in
particular comparing it with
the budget.
Financial Information for
France gathers data made
reliable by Product Control and
Central financial control. It
drafts reporting documents for
Crédit Agricole CIB Paris and
market subsidiaries and then
sends them to Consolidation.
FRANCFORT
3
3
6 • D11 – D20
3
3
Financial Department.
Guillaume Le Devehat.
The data has reached the Consolidation team, which can establish
group Crédit Agricole CIB’s financial
accounts and the regulatory
reporting documents for the
Prudential control authority and the
ECB. It also produces the solvency
and liquidity ratios for its own
account and for Crédit Agricole S.A.
Just like each month the teams
were able to meet the deadlines!
IT’S YOUR TURN
january 2015
ISSUE.46
QUESTIONS/ANSWERS
THE MANAGERS
LISTEN TO YOU
Ask question at
InsideLive
RAPHAËL VIRLEUX
SENIOR BANKER, FRENCH
REGIONS DEPARTMENT (DRF)
TANGUY BURTIN
ANALYST, RAIL FINANCE
EUROPE SFI, FRANKFURT
HENRI-CHRISTOPHE BLANCO
PEOPLE REFERENTIAL
MANAGEMENT, GOP
TINA YE
HEAD OF HUMAN RESOURCES,
CHINA
DOES CA CIB HAVE A DEVELOPMENT PROJECT FOR MID SIZE
COMPANIES?
BITCOIN: MONEY OF THE FUTURE
OR TRADERS’ LATEST FAD?
AFTER EXTERNALISING ITS POST
TRADE PROCESSING, WHAT IS
CA CIB’S APPROACH TO CLOUD
COMPUTING?
HOW DOES THE “SOLIDAIRES”
PROGRAMME REFLECT
THE BANK’S COMMITMENT TO
CSR POLICIES?
CA Group has made the
support of mid size companies,
the French economy’s growth
engine, one of the medium
term plan’s major commitments.
CA CIB is therefore working on
a commercial strategy for all of
its business lines. At the end of
January the work groups will
deliver their conclusions. These
revolve around three goals: to
improve the CIB’s commercial
penetration rate; to make
CA CIB’s offering to the
regional banks clearer and
more efficient; to define ways
of implementing this commercial
strategy and performance
indicators for the coming
two years.
Virtual payment systems like
Bitcoin will probably grow
in the coming years given the
development of electronic
commerce and money’s
dematerialisation. However the
Bitcoin system, which seeks
complete anonymity and
non-traceability, will certainly
not be able to develop in its
current state. The greatest
risk for Bitcoins is that they
are not guaranteed by financial
institutions, while regulated
electronic payment systems
are. For now Bitcoin
will therefore remain at the
experimental stage.
Concerning the cloud, Global
IT is working with Silca to
build a community offering
within the Crédit Agricole Group,
in order to optimise our
technical resources (servers)
and thus reduce our
maintenance costs. The use of
external cloud based solutions
should be approached with
caution for data security and
confidentiality reasons: no
study has been launched in this
field. In any case these projects
will be followed in close
cooperation with compliance
and legal.
Through our FReD approach
CA CIB has the ambition
to strengthen CSR behaviour
within the company. “Solidaires
by Crédit Agricole CIB” is fully
involved in this approach.
Crédit Agricole SA launched it
in 2013 in France, and in 2014
in the international network
and offers financial support for
associative projects in which
a member of staff is actively
involved. The associations
selected can be active
in the fields of solidarity,
environment, education,
research or health.
GUILLAUME LEFEBVRE
HEAD OF DRF AND OF
CA GROUP DEVELOPMENT
FABIENNE PETIT
RESPONSIBLE FOR PROSPECTIVE
STUDIES, GROUP PAYMENT
DIVISION, CA PAYMENT
PIERRE DULON
GLOBAL HEAD OF GIT
BERTRAND HUGONET
CORPORATE SECRETARY
15
NEWSSTAND in partnership with
FRANCE
IDEAS TO FOLLOW
Free speech
Aiming for exceptional
collective performance
I
n any team, entity or company, it is the
leaders and managers’ responsibility to
look for the ideal solution that will make
it possible to reach a level of complete
synergy between team members. As a
former leader of the Patrouille de France,
I wondered how I could share my experience
with these managers.
In my book “Secrets of a leader. Behind
the scenes with the Patrouille de France”
(published by Robert Laffont in October
2014), I attempted to offer my experience in
which everybody will be able to find useful
insights. There is no perfect solution. The
Patrouille de France’s experience shows
nevertheless that it is possible to reach
exceptional collective performance with
three essential ingredients: a group, a team
spirit and synergies at work. Without these it
would be impossible to execute a series of
acrobatics at 600 km per hour with just two
meters between each plane.
A Group. The Patrouille de France is an
air force unit of approximately 60 people.
The squadron in itself has nine pilots – eight
permanent members and a replacement.
The team’s operational radio code is “Athos”
which brings to mind the “One for all, all for
one” motto of the three Musketeers in
Alexandre Dumas’ novel. Each pilot has a
well-defined position and keeps it for a year,
after which he must change. This turnover is
a constraint but it allows each team member
to challenge himself and to avoid becoming
dangerously overconfident.
A group is also defined by a shared
rhythm of life. Two key periods define the
year: firstly, six months of winter training
during which the leader – who changes every
year – trains his new squadron. Then six
months of the summer season when the
group travels around the world so the French
pilots can show their amazing skills at
aerospace events like Dubai’s Air Show or
during the 14th of July parade in France. This
season, with pilots travelling for up to 6 days
a week, requires a strong commitment and
personal sacrifices.
Team Spirit. Once the group is formed, a
binding spirit between the individuals must
Harvard Business Review December 2014-January 2015
be created: this team spirit is a vital
ingredient for the squadron, which wouldn’t
survive without a total commitment of each
member. Recruitment is essential to obtain
this team spirit. The squadron itself recruits
three new fighter pilots each year. The
recruits are naturally selected on the basis of
their technical skills, but above all on their
human qualities, because in the end they are
essential to maintain a high level of
performance. Team spirit also depends on
the team leader, who federates more than he
orders, and who knows how to convince
each member of his team that they would
have taken the same decision as him. The
team leader is always leading by example
and his main goal is to keep his teams’
cohesion.
Work synergies. This is the vision that
must be given to the team to produce and
maintain a high level of collective
performance. Pre-visualising the mission is
essential to its success. During the briefing
the leader, like an orchestra director, guides
his team members with his voice, going
through the whole programme with key
words. The team members imitate with
gestures all the actions of piloting in order to
“warm up”, manage unforeseen events and
ensure nothing is left to chance. To mentally
visualise on the ground what will happen in
the air is called making “the music”.
The plane, the mechanic and the pilot
also form a triangular relationship in which
synergies are vital. Since before taking off
the pilot does not check the plane prepared
by his mechanic, you could say that he is
putting his life in his hands. They must
therefore know each other perfectly and
trust each other completely. Finally, encouraging self-criticism and outspokenness
within the group creates easier relationships
so the collective performance is greater than
the sum of individual performances and
moods.
These three dynamics – group, team
spirit, and synergies – keep the Patrouille de
France moving at full speed like a single
machine. On the ground and in the air the
team must be a single plane, and leave only
one trace in the sky.
IllustRatIon : alexandRe MaRcel - pHoto : HuBeRt lecInsKI
Cédric Tranchon is an engineer who graduated from the ecole de l’air, an officer and
a fighter pilot. He was the leader of the patrouille de France in 2011, and is now deputy
commander of a dassault Mirage 2000d fighter squadron at the nancy-ochey air base.
EXPERT WITNESS
january 2015
ISSUE 46
Relationship intelligence:
the key to success
Three dates
2000
Doctorate in psychotherapy.
Thomas Hellwig, a
professor at INSEAD,
offers his management
know-how to
companies. We focus
here on his experience.
2006
Decides to use his know-how
as a clinical psychologist in the
corporate world.
2011
Becomes professor at INSEAD
and carries on with his activities
as an independent consultant.
I
s your experience as a clinical psychologist of any use in the consultancy
missions you offer?
It is essential. I worked in accident &
emergency or cardiology departments
for more than ten years with teams under intense stress. It can be very trying;
a small mistake can have vital consequences. It made me think on how to
manage my own stress or on possible
forms of leadership in other sectors.
key points
Context The corporate world is
gradually opening up to new
management methods.
How is your approach of companies
original?
Challenge
Companies need to embrace new
management methods to remedy
certain structural weaknesses.
I offer support based on a dynamic
group method, which can have an impact on organisations. I also set up experimental learning methods that aim
to influence relations between participants, or to make them consider their
work in a global way with the
constraints that come with it. I also
work on the dialogue between generations. These subjects are central to the
way companies are organised.
What resistance do you meet?
During work sessions I am aware of
how much organisations are attracted
by theory. Some people think that
learning takes place in a classroom,
while the important thing is to take
participants out of their comfort zone.
Are French companies slow to take
these ideas into account?
We are still very attached to a certain
idea of hierarchy, which makes it hard
Players
While consultants give more and
more advice to companies,
senior executives must accept the
impact on their organisation.
to build relationships and to develop
emotional intelligence. Support within
companies is still wrongly viewed as
something that is reserved for people
who are in a difficult situation. French
companies are however gradually
opening up.
Are emotional intelligence and
inter-personal innovation the
variables on which we should work
on as a priority?
They can make a real difference today.
Given identical technical skills, the
manager with the greatest emotional
intelligence will be the one who
succeeds. Take for instance the case of
financial institutions: their offering
is very similar. The real difference
comes from relationships established
with clients or partners. To be able
to listen and use some psycho­
logy,
to encourage dialogue or even
to anticipate emotions are fundamental
to organisations, in particular in the
financial sector.
.
Interview / Sébastien Deslandes
LEARN MORE
www.insead.edu