Investment Solution : Tech Gem

SOCIETE GENERALEPRIVATE BANKING

1 0 . 2 0 2 0

TECH GEMS │ 10.2020 │ 2

CHINA'S IMPRESSIVE ECONOMIC GROWTH

Source BlackRock Asset Management, 31/12/2019

2000

2010

2050

1/10th the sizeof the US economy

2x the size of the US economy

?

The Chinese economy represents...

1/2 the size of the US economy

TECH GEMS │ 10.2020 │ 3

3,95,7

9,3

14,3

17,8

25,3

30,8

38,0

2012 2013 2014 2015 2016 2017 2018 2019

Singles' Day Black Friday

CHINESE SINGLE’S DAY VS BLACK FRIDAY

Source : BlackRock Asset Management, 31/12/2019

Online sales during Chinese“Singles Day” are 5x that of the US Black Friday

Daily online sales in single day and black friday (in USD bn)

At a time when economic growth has slowed and the global expansion cycle is maturing, it becomes all the most important to position portfolios on resilientgrowth avenues.

The Technology (“Tech”) sector now accounts for a bit more than 15% of the MSCI Emerging markets index and over 20% including e-commerce, a level similar to that ofthe US and well above other developed markets indices.

Not only does it offer premium growth but we also have to acknowledge that emerging markets equities look cheap relative to their developed market peers. The tradetruce between US and China followed by the Phase 1 trade agreement could act as a catalyst to lift pessimism over the outlook for China and emerging markets.

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BATX VS GAFA – TECH AT REASONABLE PRICE

Source: Bloomberg, 30/09/2020 Source : Bloomberg, SGPWM – 31/10/2020

From FANG To BATX = Tech at a reasonable Price

FANG (Facebook, Amazon, Netflix and Alphabet) stocks continue to be in thespotlight. Once we scratch the surface we see that Tech represent a significantpart within emerging markets with companies like Baidu in AI, Alibaba in e-commerce, Tencent in gaming and internet already own leading marketpositions. Not only China but throughout Asia, Technology leaders are on therise.

EM discount to DM has considerably widened

Technology investing has the merit of providing investors with high and recurringgrowth momentum, largely immune to economic cycles. This however comes at theexpense of valuation premium and the Nasdaq has largely rerated over the last fewyears.

Nasdaq vs. MSCI Emerging Markets PER between 2010 and 2020

GOOGLE APPLE FACEBOOK AMAZON

BAIDU ALIBABA TENCENT XIAOMI

66,1

20,6

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nasdaq MSCI Emerging Markets

998 1951 746 1575

42 749 628 64

Market capitalization in USD bn as of September 30, 2020

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TECH GEMS

Source: Bloomberg, September 2020

Participation Structured Product on a selection of Tech Emerging names

Our stock selection focuses on those key Tech companies in the Asian Emerging markets.

BAIDU INC : Baidu is the largest Internet search engine in China with mid-70s mobile traffic share in the search market. The firm generates 86% of revenue from online marketing services and the rest from other segments. Baidu is a technology-driven company and has been investing in AI technology, such as autonomously driven cars.

SAMSUNG ELECTRONICS CO LTD : Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, includingsmartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. About 75% of its profit is generated from semiconductor business, and a further 15%-20% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.

ALIBABA GROUP HOLDING LTD : Alibaba is the world’s largest online and mobile commerce company, measured by GMV (CNY 5.7 trillion/$846 billion for the fiscal year ended March 2019). It operates China’s most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba's China marketplaces accounted for 68% of revenue in fiscal 2019, with Taobao generating revenue through advertising and other merchant data services and Tmall deriving revenue from commission fees. Additional revenue sources include international retail/wholesale marketplaces (7%), cloud computing (7%), digital media and entertainment platforms (6%), Cainiao logistics services (4%), and innovation initiatives/other (1%). Mobile GMV accounted for roughly 85% of consolidated GMV in fiscal 2019.

TENCENT HOLDINGS LTD : Tencent is a Chinese Internet giant with businesses and investments in a wide variety of Internet services and contents. Major services include communication and social networking (Weixin/WeChat and QQ), online PC and mobile games, content (news, videos, music, comics, and literature), utilities (email, app store, mobile security, and mobile browser), the cloud, and financial technology. Tenpay in Weixin/WeChat and QQ is a payment solution that enables closed-loop transactions in Tencent’s ecosystems and has been adopted by many third-party partners and offline merchants. Tencent has an aggregate monthly active user base of over 800 million for QQ and 1 billion for Weixin/WeChat.

TAIWAN SEMICONDUCTOR MANUFACTURING CO : Taiwan Semiconductor Manufacturing is the world's largest dedicated chip foundry, with over 50% market share in 2018 (according to IC Insights). TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

JD.com INC : JD.com is China's second- largest e-commerce company after Alibaba in terms of transaction volume, offering a wide selection of authentic products at competitive prices, with speedy and reliable delivery. The company has built its own nationwide fulfilment infrastructure and last-mile delivery network, staffed by its own employees, which supports both its online direct sales and its online marketplace businesses. JD.com launched its online marketplace business in 2010.

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TECH GEMS

*Launch date: 18/02/1010Source : Bloomberg, SGPWM – 30/10/2020

Performance analysis as of October 30, 2020

Tech Gem est un produit structuré de participation sur un sélection de valeurs technologiques des pays émergents asiatiques : Baidu, Samsung Electronics, Alibaba, Tencent, Taiwan Semiconductor Manufacturer et JD.com Inc.

PERFORMANCE UNDERLYING ANALYSIS

70

80

90

100

110

120

130

140

28/0

2/20

13/0

3/20

27/0

3/20

10/0

4/20

24/0

4/20

08/0

5/20

22/0

5/20

05/0

6/20

19/0

6/20

03/0

7/20

17/0

7/20

31/0

7/20

14/0

8/20

28/0

8/20

11/0

9/20

25/0

9/20

09/1

0/20

23/1

0/20

Tech Gems

YTD

Since inception*

Tech Gems

4,6%

15,2%

32,7%

-

1 month

3 months

Since the beginning of the year

ALIBABA GROUP HOLDING LTD China E-commerce 3,6% 43,7% 46,9%

BAIDU INC China Interactive media and services 5,1% 5,3% 12,8%

JD.com INC China E-commerce 5,0% 131,4% 96,6%

SAMSUNG ELECTRONICS CO LTD South Korea Technological equipment -2,7% 3,5% 4,2%

TAIWAN SEMICONDUCTOR MANUFACTURING CO Taiwan Semiconductors and electronic equip. 3,5% 47,6% 56,3%

TENCENT HOLDINGS LTD China Interactive media and services 15,5% 57,8% 50,4%

1 month YTDSince

inception*

Na me Country Sector

Performa nce

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36M CUSTOM PARTICIPATION ON EW* BASKET IN USD

PRODUCT CHARACTERISTICS: 36M CUSTOM PARTICIPATION on EW* basket in USD

Anticipa ted scena rio Increase of the underlying

Risk level 0 1 2 3 4

Ma turity 3 years

Currency USD

Nomina l 2 000 000 USD

Coupure 1 000 USD

Initia l level Closing level as observed at product launch date

100% of the positive underlying performance

100% of the negative underlying performance

Settlement Cah

Issuer BNP Paribas Issuance B.V.

Inception Da te 18/02/2020

ISIN Code XS2074199402

*EW = equally weighted

Ta rget investors Investors with a propensity for high risk investments, looking for potential high returns and who can afford a loss in capital.

Pa rticipa tion a t ma turity

UnderlyingWeighted basket (1/6) of 6 stocks: Baidu Inc (BIDU UW), Samsung Electronics Co Ltd (005930 KP), Alibaba Group Holding Ltd (BABA UN),

Tencent Holdings Ltd (700 HK), Taiwan Semiconductor Manufacturing (TSM UN) and JD.com Inc (JD UW).

ADVANTAGES RISKS

The Participation Note allows the investor to benefit from the increase of the

Underlying on the Final Observation Date.

Investors bear the credit risk of the issuer and the issuer's guarantor.

If the investor sells the Note prior to the maturity date, the amount received

might be lower than the initial investment depending onmarket conditions.

The potential of return at Maturity is uncapped. The capital is not guaranteed. If the underlying falls below the exercise price on

the final observation date, investors may lose their investment and the product

cannot be considered a capital protection product.

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36M CUSTOM PARTICIPATION ON EW BASKET IN USD

MECHANISM

On the final observation date, if the underlying closes at or above the initial level, then the investor receives per note: denomination × (100% + 100% of the underlying increase).Otherwise, the investor receives per note: denomination × (100% + 100% of the underlying decline). Loss of capital scenario.

ILLUSTRATIONS

Fina l Observa tion Da te Fina l Observa tion Da te

The figures used in this example are for illustration purpose only, the objective is to describe the mechanism of the product.

SCENARIO 1 : LOSS IN CAPITAL AT MATURITY SCENARIO 2 : GAIN IN CAPITAL AT MATURITY DATE

The underlying closes below the initial level, the investor receives per note:

denomination x (100% +100% of the underlying decline).

Loss of capital scenario.

The underlying closes at or above the initial level, the investor receives per

note: denomination × (100% + 100 % of the underlying increase).

Initial

level

Initial

observation date

Final

observationdate

Initial

observationdate

Final

observationdate

Initial

level

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Risk level

In order to draw our clients’ attention to the risk associated with each investmentsolution, Société Générale Private Banking has classified each product according toits specific risk level, on a risk scale ranging from the lowest level of risk to thehighest level of risk. This risk classification represents a risk indicator internal toSociété Générale Private Banking. There are five risk levels, from R0 (the lowest levelof risk) to R4 (the highest level of risk):

For example, risk level R1 corresponds to a defensive risk profile. These indicatorsare based on the 1-year 95% Value at Risk (VaR). VaR is a measurement of themaximum amount a portfolio could lose under normal market conditions over agiven period with a given probability. If the 1-year 95% VaR amounts to x%, thismeans that there is a 95% probability that the portfolio will not lose more than x%of its value in one year

RISK FACTORS (1/2)*

*This document does not list all the risks (or other studies) that would be likely to influence the investor to complete a transaction. Investors should consult their own advisors.

Risk Profile Risk of capital loss in normal market conditions

R0 Secure 0% of the investment

R1 Defensive < 5% of the investment

R2 Balanced < 15% of the investment

R3 Dynamic < 30% of the investment

R4 Very dynamic > 30% of the investment

UCITS Risk and Return Indicator

This risk classification is a Synthetic Risk and Reward Indicator (SRRI) as requiredfor UCITS. The sub-fund has been defined as an absolute performance fund underthe Directives of the Committee of European Securities Regulators (CESR). TheSRRI has been calculated based on the monthly historic volatility over five years ofportfolios managed under the same strategy. The SRRI of UCITS must becalculated using the annualised volatility intervals shown below. These volatilityintervals reflect the increasing level of risk borne by the fund and, therefore, itsposition in the risk scale.

1 Less than 0,50 %2 Equal to or above 0,50 % and less than 2 %3 Equal to or above 2 % and less than 5 %4 Equal to or above 5 % and less than 10 %5 Equal to or above 10 % and less than 15 %6 Equal to or above 15 % and less than 25 %7 Above 25 %

Before investing, investors should consult the associated Key Investor InformationDocument (KIID) of the sub-fund.

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RISK FACTORS (2/2)*

*This document does not list all the risks (or other studies) that would be likely to influence the investor to complete a transaction. Investors should consult their own advisors.

Potential investment risks: Capital loss risk, equity risk, interest risk, risk linked to small and mid capitalisation, credit risk, counterparty risk, risk linked to discretionarymanagement and exchange rate.

Issuer’s credit risk: Investors bear the issuer’s credit risk. Prospective investors should be aware that they are exposed to the credit risk of the issuer throughout the term of theproduct. The redemption at maturity of such product is subject to the non-occurrence of any credit event or default affecting the issuer and/or guarantor (if any) until the productmaturity.

Credit ratings: The credit rating of the issuer, and/or the guarantor (if any), should not be deemed an indication of the future credit rating of the issuer, and/or the guarantor (ifany), as it may be subject to fluctuations during the product lifecycle. Credit ratings may be lowered or withdrawn without notice.

Marked-to-market value: This product may be volatile. Marked-to-market value of the product may strongly be affected by the evolution of market conditions such as, inter alia,the price of the underlying asset, interest rates, dividends, volatility. Moreover, a decline in the issuers’ creditworthiness will reduce the market value of the product.

Underlying asset: Investors are exposed to the performance of the relevant underlying asset. The product return may differ from those of the underlying it references. Investorsmust clearly understand the nature, characteristics, and risks inherent in the underlying asset and how the performance thereof may affect the pay-out and value of the product.Past performance of an underlying asset is not indicative of future performance. Product holders do not have any rights in respect of any underlying asset referenced by suchproduct.

Interest-rate risk: Any sale of the bond before its maturity may result in a capital loss (or gain).

Liquidity risk: Investors' attention is drawn to the potential problems they may encounter if they want to sell their securities before maturity due to a lack of liquidity, i.e. a lack ofbuyers.

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GLOSSARY

Bond: A bond is an investment that seeks to provide a return in the form of fixed periodic payments and the eventual return of principal at maturity.

Diversified funds: A diversified fund is a fund that is broadly diversified across multiple market sectors or geographic regions.

Equity funds: An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.

EM/ EC (Emerging markets/ countries): Markets/ countries in the process of rapid growth and industrialization.

ETF (Exchange-Traded Fund): A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

Guaranteed capital: On maturity, a capital-guaranteed structured product repays a minimum 100% of the capital invested on expiry. However, the investor bears the risk associated withthe issuer of a structured product. If the issuer defaults, there is a risk of loss of capital Capital protégé : un produit à capital protégé ne garantit pas le remboursement de l’intégralité ducapital investi. Le principal risque associé à ce type de produit est un risque de perte en capital, lié aux fluctuations à la hausse ou à la baisse des marchés de capitaux. Il y a un risque deperte en capital partiel ou total selon la nature de la protection.

« High Yield » bond: A bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better qualitybonds in order to make them attractive to investors.

« Investment grade » bond: A rating given by rating agencies that indicates that a municipal or corporate bond has a relatively low risk of default. According to Standard & Poorclassification standard, the issuer needs to obtain higher or equal to a BBB-.

Issuer: In the case of a structured product, an issuer is an entity that issues and distributes investment products. An issuer may be a bank or a company created.

Maturity date: Maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Money market fund: Money market funds are fixed income mutual funds that invest in debt securities characterized by short maturities and minimal credit risk.

Sovereign bond: a debt security issued by a national government within a given country and denominated in a foreign currency.

Structured products: Structured products are investment solutions comprised of a number of financial instruments. They combine one or more financial assets such as equities, currencies,interest rates etc. with a more sophisticated options component.

YTD : Year-to-date.

Stock / Equity: A form of security that indicates the holder has a portion of ownership in a corporation is called stock.

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DISCLAIMER

The purpose of the present document is to inform readers as to the investment strategies and opportunities identified by Société Générale Private Wealth Management, a wholly-owned subsidiary of Société Générale Bank & Trust, a public limited liability company incorporated under Luxembourg law, with registered office at 11 avenue Emile Reuter, L-2420Luxembourg, and registered with the B6061 under the Luxembourg Trade and Companies Register. It is intended solely for the person to whom it is addressed and may not becommunicated to third parties. It is the responsibility of each person in possession of this document to ensure they comply with all applicable legal and regulatory provisions. Theprice and value of financial products as well as any resulting revenues may increase or decrease. Changes in exchange rates may have a negative impact on the value, price andrevenues derived from financial products denominated in a different currency. The information given here may be amended in line with market fluctuations. Potential investors areadvised to read the information given in the detailed documentation on specific products (prospectus, term sheet, product sheet, etc.), notably as regards the associated risks; thisdocumentation only having a contractual value. Past performance is not indicative of future performance. In addition, investors acknowledge that redemptions of this product aredependent on there being no credit events on or defaults by the entity which issues the product until its maturity. The services and investments referred to here may have tax, legalor accounting implications and it is important to remember that SGBT does not provide any advice in this respect. Accordingly, Société Générale Private Wealth Managementrecommends that investors consult a professional advisor in order to assess any fiscal, accounting or legal implications linked to their individual situation.

Société Générale Private Wealth Management11, avenue Emile ReuterL-2420 Luxembourg

www.sgpwm.societegenerale.com

Société Anonyme – R.C.S Luxembourg B60.963 – management companylicensed and supervised by the CSSF, 283, route d’Arlon L-1150 Luxembourg and subject to Chapter 15 of the Luxembourg law of 17 December 2010 relating to undertakings for collective investment, as amended.