RepoRt on - BNP Paribas

nP Paribas uses two comparative methods to measure the value created for shareholders, based on a medium- to long-term
investment period reflecting the length of time during which the majority of individual investors hold their bnP Paribas shares.
five-year comparison of an investment in bnp paribas shares at an opening price of
euR 53.40 at 03/01/2005 with the “livret A” passbook savings account and mediumterm
government bonds.
in this calculation, we assess the creation of shareholder value by comparing an investment in bnP Paribas shares with two risk-free
investments: the “livret a” passbook savings account offered by the french savings bank network and medium-term french government
notes (oats).
total shareholder return on an investment
in bnP Paribas shares:
calculation basis
initial investment = 1 share at the opening
price on 3 january 2005 = eur 53.40
dividends reinvested
Preferential subscription rights exercised
in the march 2006 and october 2009
capital increases.
value at 31 december 2009: 1.2363
shares at eur 55.90, i.e. euR 69.11.
29.4% increase in initial investment
effective rate of return: 5.30% per year
investment of eur 53.40 on 1 january
2005 in a livret a passbook account:
the interest rate on the investment
date was 2.25%, reduced to 2% on
1 august 2005. the interest rate was
increased twice in 2006, to 2.25% on
1 february and to 2.75% on 1 august,
and to 3% on 1 august 2007. the interest
rate was increased twice more in
2008, to 3.50% on 1 february and to 4%
on 1 august. there were three changes
in 2009, with the interest rate being reduced
to 2.50% on 1 february, 1.75%
on 1 may and 1.25% on 1 august. at
31 december 2009, this investment was
worth euR 60.73, an increase of euR 7.33
(+13.7%), as opposed to an increase
of eur 15.71 (+29.4%) per bnp paribas
share over the same period.
vAlue At 31/12/2009
of A euR 53.40
investment mAde
on 01/01/2005
60.73
62.22
LIvReT A GOveRNMeNT
BONDS
BNP PARIBAS
ShARe
26 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
69.11
investment of eur 53.40 on 1 january
2005 in 5-year french government
bonds:
the five-year btan interest rate on that
date was 3.0825%. at the end of each
subsequent year, interest income is reinvested
in a similar note on the following
terms:
— 2.99393% (btan) in january 2006 for
4 years;
— 3.89016% (btan) in january 2007 for
3 years;
— 4.07272% (btan) in january 2008 for
2 years;
— 3.049% in january 2009 for 1 year
(euribor).
at the end of five years, the accrued
value of the investment is euR 62.22,
an increase of eur 8.82 (+16.5%), just
over half of the increase of euR 15.71
(+29.4%) per bnp paribas share over
the same period.
compARAtive totAl
5-yeAR RetuRn foR
A euR 53.40 investment
on 01/01/2005
7.33
8.82
LIvReT A GOveRNMeNT
BONDS
15.71
BNP PARIBAS
ShARe