Crédit Mutuel Group - 2018 Activity Report Participativedemocracyas a business model ORGANIZATIONAL 7.9 2,100 SHAREHOLDERS’ AGILITY make concrete decisionsMEMBERSMILLION of local banksMEETINGSin 2018 on the future of the group HELPING AND SERVING, the keys to a unique business model 22,450 36% _ ELECTED DIRECTORS WOMEN ELECTED run the local banks to boards of directors The heart of the group is Crédit Mutuel, a cooperative bank and take care of their in the group governed by the French Act of September 10, 1947. It belongs GOOD IDEAS day-to-day development exclusively to its members, who own its capital and determine ARE TIMELESS! its strategy within a framework of democratic methods. Independent and permanently rooted in local economies, A DECENTRALISED Crédit Mutuel contributes to job creation and regional economic vitality. COOPERATION IS IN OUR DNA ORGANISATION FOR n Rules of good conduct for all As a partnership company that is not listed on the stock exchange, SHORT DECISION-MAKING n Equality among members with “one person, one vote” Crédit Mutuel doesnot seek to enrich a group of shareholders, CHANNELS n Respect for subsidiarity but rather to provide the best possible service to all. n Values that unite Its business model, designed to meet the needs of all economic 200 YEARS OF Crédit Mutuel’s decentralized organization fosters strong players, demonstrates the power of individual initiative and LOYAL SERVICE employee involvement at every level – local, regional and national its collective expression: cooperation. – for better responsiveness and service quality. It supports a short decision-making process, good risk diversifi cation and effective quality control. Every year, 20,000 meetings of boards of directors and/or MEMBERS: THE SHAREHOLDERS’ supervisory boards at 2,100 local banks and 2,000 shareholders’ THE KEY LINK IN THE MEETING OF A LOCAL BANK: meetings – with a target attendance of 10% of members – serve as an expression of genuine democratic corporate governance DECISION-MAKING AND THE FOUNDATION OF in action. ACTION CHAIN INTERNAL DEMOCRACY The local banks are organized into 18 Regional Federations, all of which in turn belong of the Confédération Nationale. At Crédit Mutuel, cooperation and interactivity are not a Organized around its branch network, the shareholders’ meeting fantasy. They are a concrete part of a day-to-day operatingof a local bank is the foundation of Crédit Mutuel’s internal Crédit Mutuel’s three levels operate according to the principle of model that puts members at the core of every decision madedemocracy. This is an opportunity to listen and learn, as well as subsidiarity, i.e. at the level closest to members. Local banks thus and every action taken. a forum to engage in discussion and share suggestions among carry out all the key branch banking functions, while the other employees, directors and members, to improve the quality two levels only perform those functions that the local banks The shares held by members constitute the capital classifi edof services offered. cannot provide for themselves. as the group’s shareholders' equity for regulatory purposes. Governing boards are made up of member representatives, They can be redeemed only at their nominal value. Each meeting includes a statutory portion in which the activity from local shareholders’ meetings where they are elected on and management report are presented and the members vote on a “one person, one vote” basis to the board of directors at Choosing a bank like Crédit Mutuel means fi rst and foremostthe accounts. It is also the occasion on which members elect theirthe national level. adhering to its founding values of proximity, solidarity and socialrepresentatives to the bank’s board on the principle of responsibility. It also means being open to the possibility of“one person, one vote”. Crédit Mutuel is locally rooted and independent; as a fi nancial expressing oneself freely and participating in controlled growthEverybody can therefore take part in making decisions, elect cooperative, it can neither be sold nor taken over. It has always that serves all members and customers and, more broadly, representatives and apply for election to the board of directors served its members and all stakeholders in the economy, society. themselves. contributing actively to job creation and regional economic vitality. 32 33