BRD SOGELEASE

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BRD SOGELEASE
Piata de Leasing Hilton 4.11.03

• Just a glance on the past
• or the story of a start-up in Romania

JP Decrock- General Manager
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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Reasons for a creation

• BRD network and necessity to offer leasing
  product to the customers
• On line with Société Générale retail banking
  policy in Europe

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Advantages

• Legal in favor of the lessor interest
  (repossession)
• VAT and customs duties treatment
• Portfolio of customers existing
• A few investment (terms of capital) for a good
  ROE
• Not too many competitors
• Potential leasing demand (was mainly focused in
  cars financing)

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Weak Points

• Regulation not so clear (fiscal, legal and
  customs)
• Leasing company considered as commercial entity
  and not financial institution
• Leasing cost gt credit
• Residual value too high (20)
• Leasing cars financing
• Lack of formation and professionalism (montage
  research)
• No supervision by authorities leasing is done
  by many entities without ratios to be respected.
  Plus capital minimum not enough.
• Competition unfair (see above)

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Infrastructure

• A location
• A feasibility study
• A management software from Paris
• No furniture,no telephone and no micro, printers
  and faxes. It is a start up privilege.
• Commercial strategy to be defined.
• Staff 2 persons from BRD
• And we were in June

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Recruitment 1st part

• Firstly in the financial and accounting sector
• Then in the risk side (to think on the future
  unpaid) recovery legal
• Then the communication and marketing
• In the same time to give training in the leasing
  and reinforce commercial managers and middle
  office
• End of 2001 12 people

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Recruitment 2nd part

• Recruitment of expertise in the commercial side
  Commercial Director and deputy knowing the
  leasing
• Reinforce the logistic and middle office
• End of 2002 25 people
• Then reinforce our presence in the province with
  the first regional representatives
• In the same time to increase staff in the BO in
  order to follow the activity
• End of 2003 32 people

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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Demystify the leasing...
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The commercial strategy

• Firstly to serve the BRD network.
• Secondly to reinforce SG presence in Romania.
  To give commercial support for our world network
• To demystify the leasing notion not only the
  cars financing. To finance all types of equipment
• To be innovative propose different solutions as
  pure rental, operating lease, evaluative rental
• To be flexible
• To be professional . This priority has been the
  reason for BRD SGL to resign from the leasing
  association.

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The expertise.
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The commercial strategy

• Firstly to serve the BRD network.
• Secondly to reinforce SG presence in Romania.
  To give commercial support for our world network
• To demystify the leasing notion not only the
  cars financing. To finance all types of equipment
• To be innovative propose different solutions as
  pure rental, operating lease, evaluative rental
• To be flexible
• To be professional . This priority has been the
  reason for BRD SGL to resign from the leasing
  association.

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Flexible...
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The commercial strategy

• Firstly to serve the BRD network.
• Secondly to reinforce SG presence in Romania.
  To give commercial support for our world network
• To demystify the leasing notion not only the
  cars financing. To finance all types of equipment
• To be innovative propose different solutions as
  pure rental, operating lease, evaluative rental
• To be flexible
• To be professional . This priority has been the
  reason for BRD SGL to resign from the leasing
  association.

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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The present situation

• 2003 our performances are above the forecast in
  terms of production and results
• BRD SGL should be the TOP3 amongst the leasing
  company (out of captives) in Romania in terms of
  production
• We have a portfolio very diversified. It concerns
  all types of companies, all sorts of equipment
  and all the sectors.
• Our cars financing trucks 60 of our
  portfolio against 85 in the leasing activity.

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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The future in BRD Sogelease

• 2004 to continue our commercial strategy as
  defined , it means
• 1) to serve SG and BRD network
• 2) to finance the economy in Romania
• 3) to be very strict in the risk approach
• 4) to reinforce our relations with the suppliers
• 5) to create new products
• 6) and of course to maintain an acceptable return
  on the investments

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Chapters

• Reasons for a creation
• The advantages
• The weak points
• The infrastructure
• The recruitment
• The commercial strategy
• The present situation
• The future
• What are we expecting from the authorities ?

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What are we expecting from the authorities ?

• More dialogues before any law proposal and
  consequently the creation of a regulatory
  committee with all the parts involved in the
  leasing. Not only with ASLR which doesnt
  represent all the leasing sector.
• Topics to be discussed inside this working
  committee clarifications on the leasing law,
  propositions for supervision, analysis of the
  fiscal aspects plus the customs duties,...

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The end of the road..
Thank you for your attention