Inaugural Green Bond Senior Unsecured OpCo Investor Relations May - - PowerPoint PPT Presentation

Inaugural Green Bond Senior Unsecured OpCo

Investor Relations

May 2020

Table of contents

Green Finance Framework and Issuance

9

Executive summary

4

2

Appendix

May 2020

May 2020 3

The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any further disclosure document published by Credit Suisse Group AG and/or its affiliates. Any person acquiring securities at any time must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. In making this presentation available, Credit Suisse Group AG gives no advice and makes no recommendation to buy, sell or otherwise deal in shares of Credit Suisse Group AG or in any other securities or investments whatsoever. Unless the context otherwise requires, the terms “Credit Suisse”, “Credit Suisse Group”, “the Group”, “we”, “us” and “our” mean Credit Suisse Group AG (“CSG”) and its consolidated subsidiaries. The business of Credit Suisse AG, the direct Swiss bank subsidiary of CSG, currently is substantially similar to the Group, and we use these terms to refer to both when the subject is the same or substantially similar. We use the term “the Bank” when we are referring only to Credit Suisse AG and its consolidated subsidiaries. Unless otherwise indicated, all financial data and other metrics presented herein are for the Group. Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No action has been taken by Credit Suisse that would permit an offering of securities or possession or distribution of this document or any publicity material relating to securities in any jurisdiction where action for that purpose is required. The distribution of the content of this presentation in certain jurisdictions may be restricted by law. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. Persons into whose possession this document comes are required by Credit Suisse to inform themselves about and to observe any such restrictions. This presentation has been prepared solely for information purposes and is not for release, publication or distribution (directly or indirectly) in or to the United States or to U.S. persons as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). This presentation does not constitute an offer of, or an invitation to make an offer for or purchase of, any securities of Credit Suisse in the United States or to any U.S. person or person in any other jurisdiction where such offer or invitation would be unlawful. These documents may not be viewed by persons in the United States or U.S. persons. The securities described herein are being offered and sold outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act, and may not be offered, sold, pledged or otherwise transferred within the United States or to, or for the account

• r benefit of, U.S. persons. The securities described herein have not been and will not be registered under the Securities Act. Credit Suisse does not intend to register any portion of the securities in the United States or to conduct a public offering of securities in the United States or in any other

jurisdiction where such offer would be unlawful. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000. This material does not purport to contain all of the information that you may wish to consider. This material is not to be relied upon as such or used in substitution for the exercise of independent judgment. Cautionary statement regarding this presentation This document is subject to completion and amendment without notice. This is not an offering memorandum or prospectus and should not be treated as offering material of any sort and is for information purposes only. The information contained herein is summary only. The notes referred to herein may

• nly be subscribed for or purchased on the basis of the information contained in the final terms for such notes.

Cautionary statement regarding forward-looking statements This presentation contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in "Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2019 and in the “Cautionary statement regarding forward-looking information" in our 1Q20 Financial Report, published on May 7, 2020 and filed with the US Securities and Exchange Commission, and in other public filings and press releases. We do not intend to update these forward-looking statements, except as may be required by applicable securities laws. In particular, the terms “Estimate”, “Illustrative”, “Ambition”, “Objective”, “Outlook” and “Goal” are not intended to be viewed as targets or projections, nor are they considered to be Key Performance Indicators. All such estimates, illustrations, ambitions, objectives, outlooks and goals are subject to a large number of inherent risks, assumptions and uncertainties, many of which are completely outside of our control. These risks, assumptions and uncertainties include, but are not limited to, general market conditions, market volatility, interest rate volatility and levels, global and regional economic conditions, political uncertainty, changes in tax policies, regulatory changes, changes in levels of client activity as a result of any of the foregoing and other factors. Accordingly, this information should not be relied on for any purpose. We do not intend to update these estimates, illustrations, ambitions,

• bjectives, outlooks or goals.

We may not achieve the benefits of our strategic initiatives We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other challenges discussed in our public filings, could limit our ability to achieve some or all

• f the expected benefits of these initiatives.

Estimates and assumptions In preparing this presentation, management has made estimates and assumptions that affect the numbers presented. Actual results may differ. Annualized numbers do not take account of variations in operating results, seasonality and other factors and may not be indicative of actual, full-year results. Figures throughout this presentation may also be subject to rounding adjustments. All opinions and views constitute judgments as of the date of writing without regard to the date on which the reader may receive or access the information. This information is subject to change at any time without notice and we do not intend to update this information. Statement regarding capital, liquidity and leverage Credit Suisse is subject to the Basel III framework, as implemented in Switzerland, as well as Swiss legislation and regulations for systemically important banks, which include capital, liquidity, leverage and large exposure requirements and rules for emergency plans designed to maintain systemically relevant functions in the event of threatened insolvency. Credit Suisse has adopted the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS) and implemented in Switzerland by FINMA. Unless otherwise noted, leverage exposure is based on the BIS leverage ratio framework and consists of period-end balance sheet assets and prescribed regulatory adjustments. The look-through tier 1 leverage ratio and CET1 leverage ratio are calculated as look-through BIS tier 1 capital and CET1 capital, respectively, divided by period-end leverage exposure. Swiss leverage ratios are measured on the same period-end basis as the leverage exposure for the BIS leverage ratio. Sources Certain material in this presentation has been prepared by Credit Suisse on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.

Disclaimer

4

As a global leader in financial services, Credit Suisse recognizes its responsibility and position to help combat climate change and environmental degradation by supporting the transition to a low carbon sustainable economy and the achievement of the UN Sustainable Development Goals To that effect, our Chief Executive Officer announced the establishment of the Impact Advisory and Finance department in September 2017 to direct, coordinate and facilitate projects and initiatives across the Bank that make a positive economic, environmental and social impact One of the most impactful ways in which we can create lasting positive impact is by issuing green bonds which direct capital towards low carbon and environmentally sustainable economic activity In line with best market practice, Credit Suisse has committed to a high standard of transparency for its green bonds to enable investors to review its green credentials. We established our green finance framework in 2019 in line with the ICMA Green Bond Principles (2018), and have engaged ISS-ESG to act as the independent second-party-opinion provider in respect of the framework and use of proceeds. ISS is providing an annual review of the updated portfolio for the planned bond issuance

May 2020

Executive summary

5 Source: Credit Suisse website May 2020

Credit Suisse Code of Conduct Responsibility in banking Responsibility in the economy and society

Our main responsibility is to ensure that we run our company successfully on a long-term basis for the benefit of our clients, shareholders, employees and society as a whole. We believe competence, client focus, compliance, diligence and responsible conduct are key to the success of our business. This includes taking account of social and environmental aspects when conducting our activities. As a global bank, we see ourselves as an integral part of the economy and society. We therefore aim to run our business in a way that creates value for all our stakeholders. Through our role as a financial intermediary, we support entrepreneurship and economic growth, and we make an economic contribution as an employer, taxpayer and contractual partner. We also support various humanitarian and charitable organizations and projects as well as cultural and sporting events. Qualified and motivated employees are a vital success factor. We want to be an employer of choice worldwide and therefore

• ffer our people progressive working conditions and varied

career opportunities in a multicultural environment in our efforts to attract the best talent. We are committed to conducting our business with a long-term view to supporting environmental sustainability. We believe important pillars of this approach include our support for the transition to a low-carbon and climate-resilient economy as well as the protection of biodiversity. We therefore strive to promote the efficient use of resources and address sustainability issues when managing risks.

• Credit Suisse as an employer
• Diversity and inclusion
• Climate and biodiversity
• Environmental management

Responsibility as an employer Responsibility for the environment

• Trust and expertise
• Risk management and sustainability
• Sustainable impact and investment products and services
• Our role in the economy and society
• Our social commitments
• Sponsorship

Our understanding of Corporate Responsibility

6 May 2020

Credit Suisse has a long history of green finance successes

‘92 ‘00 ‘02 ‘03 ‘04 ‘06 ‘08 ‘09 ‘10 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

UNEP-Finance Initiative – Credit Suisse is

• ne of the first

signatories UN Global Compact – Credit Suisse is

• ne of the first

signatories rA Global Microfinance Fund First sustainable real estate fund in Switzerland Credit Suisse is globally greenhouse gas neutral Local Currency Microfinance Note 1 Launch of the Global Citizens Program (GCP) First climate neutral real estate fund in Europe Higher Education Note 2 Local Currency Microfinance Note 3 1st place in Bloomberg Rating for Solar Tax Equity for the second year in a row Green Bond Fund and Sustainable Index Funds (Emerging Markets) Establishment of the Impact Advisory and Finance (IAF) Department Launch of the Edutainment Fund, Responsible Consumer Fund, Quadria PE Healthcare Fund and the Low Carbon Blue Economy Note Through Reputational Risk Assessment Process - Assessment of sustainability risks FT/IFC Sustainable Bank Award Launch of CSAM goes ESG Co-founder of responsAbility rA BOP Equity Fund rA Microfinance Leaders Fund Launch of the Microfinance Capacity Building Initiative (MCBI) Signatory UN PRI Signatory Green Bond Principles Higher Education Note 1 Nature Conservation Note 1 Awarded the Ecological Finance Deal of the Year for our Nature Conservation Notes Asia Impact Fund launch 14 Green Star Awards for Credit Suisse real estate funds Founding member "Coalition for Private Investment in Conservation" Launch of further Sustainable Index Funds (US, Equity World, EMU) In our Real Estate funds the 100th building is certified with a greenproperty label. CS is a founding signatory

• f the IFC Impact

Management Principles Equator Principles – Credit Suisse is

• ne of the first

signatories Sustainable discretionary mandates for private customers CS becomes a signatory of the Poseidon principles Launch of the Climate Change Supertrend

High level overview: Credit Suisse has a long history of sustainable investing and has been an early signatory to critical industry initiatives

UNEP Finance Initiative: A partnership between UNEP and the global financial sector to mobilize private sector finance for sustainable development. The Green Bond Principles: Voluntary guidelines recommending transparency and disclosure and to promote integrity in the development of the green bond market. UNEPFI Principles for Responsible Banking: A set of six principles providing a framework for a sustainable banking system, supporting banks in making a positive contribution to society. The Climate Bonds Initiative: An international organization working to mobilize the global bond market for climate change solutions, for example by developing a climate bond taxonomy. The Equator Principles: An ESG risk management framework for project finance, providing a minimum standard for due diligence and monitoring. Principles for Responsible Investment: A set of six principles providing a global standard for responsible investing as it relates to ESG factors. U.S. Alliance for Sustainable Finance: Convening 15 financial institutions to drive investment in clean energy and climate resilience projects across the U.S. Operating Principles for Impact Management: A global standard where investors seek to generate positive societal impact alongside financial returns in a disciplined and transparent way. The Thun Group of Banks: Forum to support the integration of the UN Guiding Principles on Business and Human Rights into the policies and practices of banking institutions. The Wolfsberg Group: An association of 13 global banks aiming to develop frameworks and guidance for the management of financial crime risks. Swiss Sustainable Finance (SSF): An industry association seeking to foster sustainable finance in Switzerland through information, education and convening. Global Impact Investing Network (GIIN): Network seeking to accelerate impact investing through knowledge exchange, producing tools, resources and thought leadership. UN Global Compact: A voluntary initiative based on CEO commitments to implement universal sustainability principles and to undertake partnerships in support of UN goals. Poseidon Principles: Organisation establishing a framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonisation

Longstanding commitment to Sustainable Finance

May 2020 7

2º Investing Initiative: Joined a network of 17 Banks in road testing the PACTA1 methodology for climate scenario analysis of corporate lending portfolios

1 Paris Agreement Capital Transition Assessment

Energy Transitions Commission: a diverse group of Leaders from the public and private sector, aiming to accelerate change towards low-carbon energy systems while enabling strong economic development

8

Appointed the Conduct and Ethics ombudsperson – serving as an immediate point of escalation Our employees dedicated over 60,378 hours to skills-based volunteering More than 500 employees provided with training in sustainability risk management 22% proportion of women in senior management positions (Managing Directors and Directors) Assessment of potential transactions based on globally applicable policies in line with International Organization standards 17,200 employee participants to our training on environmental management Involvement in Thun Group to work on implementation guidance of the UN Guiding Principles on Business and Human Rights Decrease of net global greenhouse gas emissions by Credit Suisse by 23% to 127,500 metric tons of CO2 in 2019 vs. 20172 Assets invested according to sustainability criteria rose to over CHF 44 bn by the end of 2019 Launch of new products (Green Bond Index) and initiatives (e.g., IFC Operating Principles for Impact) Global Real Estate portfolio of CHF51bn in AuM with a focus on sustainable investment solutions Inclusion in the Dow Jones Sustainability World Index since 1999 SDG oriented impact investing, encompassing also microfinance in developing countries Participated in over USD 20 billion sustainability-linked loans in 2019

1 Credit Suisse Corporate Responsibility Report 2019 2 Decreased by 70% vs. 2010 GRESB = Global Real Estate Sustainability Benchmark May 2020

Creating value Operating responsibly Managing wider impacts

We have achieved significant sustainability milestones¹

Green Finance Framework and Issuance

9 May 2020

10

Use of proceeds 1

Our framework has been aligned with the industry benchmark – the Green Bond Principles (2018)

Project evaluation and selection 2 Management

• f proceeds

3 Reporting 4 Assurance 5

May 2020

Overview of Credit Suisse’s Green Finance framework

11

Use of proceeds

Low emission transport infrastructure and public transportation, including rail transport

Clean transportation (SDG 9/11)

Ecosystem conservation projects incl. sustainable forestry (FSC or PEFC certified), sustainable agriculture and sustainable fisheries (MSC certified)

Conservation finance (SDG 14/15)

Wind, solar, biomass, geothermal and small-scale hydro (up to 20MW), fuel cells, battery storage technology and related energy storage infrastructure

Renewable energy (SDG 7/13)

Buildings with at least Minergie, gold LEED or a very good BREEAM rating, sustainable retrofits and smart grid investments

Low carbon buildings (SDG 9) Sustainable waste management (SDG 11/12)

Sustainable waste management, recycling and waste-to-energy projects

Sustainable water infrastructure (SDG 6/9)

Green infrastructure (e.g., flood defenses), sustainable water supply and management (e.g., sewage collection and treatment)

Energy efficiency (SDG 7/11/13)

Development or deployment of technology that reduces energy use for a given asset or targets product improvements to energy distribution

Circular economy (SDG 11/12)

Upgrades to manufacturing processes and facilities to improve resource efficiency

May 2020

Our focus is on eight eligible sectors that are consistent with the Green Bond Principles and focused on UN Sustainable Development Goals

12

Use of proceeds – illustrative initial portfolio

Illustrative portfolio1 Tax equity investments2,4 Corporate lending

Top-tier assets

Tax equity investments in solar projects developed by top-tier developers using top-tier equipment, and located across the U.S.

>34,000 projects

The portfolio3 consists of estimated over 513 MWs across over 34,000 projects (over 33,000 households and hundreds of commercial and industrial projects)

>16.6 million MT CO2

The portfolio3 is expected to facilitate over 475 thousand of global warming MT of CO2 avoided p.a. over the useful lives of the assets, amounting to over 16.6 million cumulative MT of CO2 avoided

May 2020

We intend to allocate proceeds from the inaugural bond issuance to operating renewable energy projects, clean transportation and real estate

Real Estate Key Solar Projects Highlights

LEED Gold Building ~$641m Total Eligible Portfolio A B C

U.S. = United States of America MT = Metric ton MW = Megawatt 1 Table contains a list of illustrative projects that we intend to refinance with the inaugural green bond. We expect to allocate the majority of total bond proceeds at issuance and the un-allocated proceeds from the issuance to future green investments eligible under our green finance framework within the next 12 months 2 “Tax equity investments” are structured equity investments with economic and risk characteristics similar to non-recourse project debt, which serve, in part, to monetize tax credits provided by the U.S. federal government to incentivize domestic development of renewable energy generation 3 Credit Suisse’s tax equity investments represent partial ownership of the projects. Figures represent best estimates as the precise system count is constantly changing. Updated metrics will be included in the green bond reporting. 4. In November 2016, Tesla, Inc. (NASDAQ:TSLA) acquired SolarCity Corporation (NASDAQ:SCTY) in an all-stock deal.

13

Use of proceeds – illustrative case study

Hundreds

• f projects

Tax equity investment in a portfolio of hundreds of commercial, industrial and small utility scale solar photovoltaic systems located across the U.S. which were developed by SolarCity, now known as Tesla Energy Operations, Inc.

Hundreds

• f customers

The projects were developed and constructed between 2015 and 2017 and are expected to generate clean, renewable solar power for more than a hundred businesses, schools and government

• rganizations across the U.S.

Hundreds

• f megawatts

The investment financed hundreds of megawatts of new commercial solar projects, believed to be the largest transaction of its kind when it closed

SolarCity1 is a full-service U.S. solar developer and operator for homeowners, businesses and government organizations

Source for picture: www.solarcity.com/commercial/enterprise. U.S. = United States of America MT = Metric ton

• 1. In November 2016, Tesla, Inc. (NASDAQ:TSLA) acquired SolarCity Corporation (NASDAQ:SCTY) in an all-stock deal.

May 2020

14

Project evaluation and selection

Financial due diligence ESG evaluation Impact Evaluation

Financial analysis (e.g., loan performance) of green assets1 that have been identified by business teams The environmental benefit of each project or asset will be assessed against science-based climate targets and quantified if feasible. Social impacts will be evaluated to the extent appropriate 1st filter 2nd filter 3rd filter

1 Such assets may include new financings or capital already invested in eligible projects preceding the green bond issuance with the intention to replace in the future. 2 The following sectors are excluded under our green bond investment framework: coal-fired power, defense, gambling, large-scale hydropower, mining, nuclear energy, oil & gas, palm oil, tobacco and wood pulp. May 2020

Our project evaluation and selection is made within a robust framework

Environmental, social and governance (ESG) screening based on sector exclusion list2 and review of the eligibility performed in-house by our Sustainability team based on best-in-class market data (e.g., MSCI Inc., RepRisk AG). Includes counterparty and asset-level evaluation

15

Management of proceeds

Funding

Single global pool of eligible green assets Manual tracking of net proceeds use via internal systems

May 2020

With a transparent and sustainable management of proceeds

Green bond accounting

Balance of net proceeds not yet allocated invested in liquid instruments consistent with green objectives

Unallocated funds

A single global pool of assets stemming from eligible sectors under the Green Finance Framework

Portfolio of eligible green projects

16

Reporting

Annual reporting will be provided on www.credit-suisse.com/greenfinance The green bond reporting will be published until full allocation of proceeds and include an

• verview on:

updated amount of proceeds allocated to eligible projects and assets balance of unallocated proceeds relevant environmental impact Reporting will be made in compliance with the Green Bond Principles best practice guidance Annual verification of use of proceeds by an independent second-party will be included in the reporting

May 2020

Marisa Drew CEO Impact Advisory & Finance Department

17

Assurance

 Second-party opinion is provided:

− i) ex-ante on the Green Finance Framework and eligible assets and projects, and − ii) on an annual basis for the duration that green financing is

• utstanding

 In its second-party opinion, ISS-ESG states:

 “The issuer has defined a formal concept for its Green Bonds regarding use of proceeds, processes for project evaluation and selection, management of proceeds and reporting. This concept is in line with the ICMA GBPs”  Positive sustainability quality of the asset pool  “The issuer itself shows a good sustainability performance…” Ex-ante

• pinion

Annual reporting Launch

• f bond

Annual reporting 1 year after launch Duration of financing

May 2020

1 2

Appendix

18 May 2020

19

Credit Suisse sustainability indices & ratings

Investors are increasingly taking sustainability criteria into account alongside key financial indicators when making investment decisions. The analyses and ratings produced by specialized sustainability rating agencies and index providers – which assess companies according to environmental, social and governance criteria – serve as a guide in this context Why are Indices and Ratings important

May 2020 Indices Brief description Credit Suisse Dow Jones Sustainability World Index (DJSI World) Global best-in-class approach: The top 10% of the 2,500 largest companies in the S&P Global Broad Market IndexSM that lead the field in terms of sustainability. Credit Suisse has been a constituent of the Dow Jones Sustainability World Index since it was launched in 1999. Dow Jones Sustainability Europe Index (DJSI Europe) European best-in-class approach: the top 20% of the 600 largest European companies in the S&P Global Broad Market IndexSM that lead the field in terms of sustainability. Credit Suisse has been a constituent of the European Index of the Dow Jones Sustainability Indices since it was launched in 2001. FTSE4Good Index Companies that meet globally recognised corporate responsibility standards. Credit Suisse has been a constituent of the FTSE4Good Index Series since it was launched in 2001. Ratings Brief description Credit Suisse CDP CDP represents institutional investors with invested assets of over USD 90 trillion; its aim is to offer transparent guidance to investors on climate-related opportunities and risk for companies. B (rating scale: D- to A) MSCI ESG Rating MSCI ESG Ratings assess a company’s performance based on environmental, social and governance (ESG) themes, focusing on key ESG issues identified for the industry. BBB (rating scale: AAA to CCC) SAM Corporate Sustainability Assessment (CSA) The SAM CSA analyzes the sustainability performance of over 4,500 listed companies every year based on environmental, social and governance (ESG) criteria. Overall company score: 68 (rating scale: 1 to 100) (94th percentile) Economic dimension score: 56; Environmental dimension score: 88; Social dimension score: 79 Sustainalytics The sustainability research carried out by Sustainalytics focuses on environmental, social and governance (ESG) criteria. 65 points (rating scale: 1 to 100) (70th percentile; rated 108 out of 353)1

1 2019 Corporate Responsibility Report

Climate Bonds Initiative Principles for Responsible Investment (PRI) Equator Principles Roundtable on Sustainable Palm Oil (RSPO) Green Bond Principles UN Environment Programme Finance Initiative (UNEP FI) Oebu – Swiss Business Council for Sustainable Development UN Global Compact Principles for Responsible Banking (PRB) Sustainability networks and initiatives Credit Suisse actively participates in a number of sustainability networks and initiatives worldwide

CREDIT SUISSE AG Investor Relations Paradeplatz 8 | 8001 Zürich | Switzerland Phone +41 44 333 11 11 investor.relations@credit-suisse.com