Make finance

work for you

Activity Report 2017
Table of contents
Letter from the General Partner 03

Our philosophy 04
• A unique Franco-German model 04
• A history of entrepreneurs, know-how & boldness through the years 06
• Our values 08
• We share the same values as family-owned companies 10
• Talent at the heart of our strategy 12

Our governance 14
• Heads of business lines 14
• Boards 16

Our know-how 18
• Our businesses 18
• An integrated group that guarantees high-quality services 18
• Corporates & Markets 20
• Asset Management 22
• Private Wealth Management 23
• We offer a broad range of financial services for people and businesses 24
• We act for a more sustainable future 26

Meet us 28
• Our offices 28
• Key figures 30
 Dear clients,
Letter from the General Partner 02 Letter from the General Partner 03

On behalf of all of the Group's employees, I would like to reiterate our thanks
for the trust you have placed in us. You are at the forefront of our determined
efforts to best serve your interests.

As you know, we currently have 1,300 employees in Germany and

1,000 in France following the three acquisitions carried out in Germany
in 2015 and 2016.

With regards to our activities, the Group’s three principal business lines
have been regrouped under a Franco-German leadership: private wealth
management, asset management and corporates and markets.

The new Franco-German management structure is now operational.

We wanted to mark this major new step by changing the name, logo and
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
tagline of the Group both in France and in Germany, whilst at the same time
retaining the character and history of each of these financial houses that were
created more than 150 years ago.

Our Franco-German ODDO BHF, make finance work for you, joins together our cultures and
expertise means that we experience under the same name and with a shared set of values.

can provide our clients Our Franco-German expertise means that we can provide our clients with
with in-depth knowledge in-depth knowledge of the companies, economy and investors of the region.
This move will allow us to continue to invest in the best tools for our IT and
of the companies, economy financial analysis systems as well as any new expertise that we deem beneficial.
and investors of the region.
Lastly, we would take this opportunity to confirm the financial health of
PHILIPPE ODDO the Group, since in 2016 ODDO BHF generated net profit of € 136m,
a shareholders' equity above € 800m and a solvency ratio above 15%.
General Partner

Therefore it is with more determination than ever that we are ready to analyse
and respond to the uncertainties, notably political, of the coming year.

PHILIPPE ODDO
General Partner
 A unique
Our philosophy 04 Our philosophy 05

Our day-to-day cooperation enriches

Franco-German model
our businesses, our cultures
and our services to our clients

Three major acquisitions made in 2015

and 2016 marked the start of the Group’s dynamic
development strategy intended to build up
a Franco-German business.
Germany:
1,300
employees (57%)

France:
1,000
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
employees (43%)

Why did the Group make this choice?

France and Germany are key players
in the eurozone.

• French and German • T he two countries have • +500 • +300 • 222


companies represent: a combined 148m inhabitants

48%
and account for 40% of European issuers covered employees are taking German and French compa-
the European Union's GDP*. (research, equity & language lessons. nies attended our 20th Oddo
bond coverage). Forum held in January 2017
of the Euro Stoxx Small
and Medium Indexes
• They also boast 417 listed in Lyon.
family-owned companies with

65.5%
total capital of over € 100m.

of the Euro Stoxx Large Index

* Sources: http://data.worldbank.org and https://europa.eu

 A history
Our philosophy 06 07

of entrepreneurs,
know-how & boldness
through the years

1850 1900 1970 1987 2000 2017

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
A rich history Visionary Cooperation Stable governance Dynamic development The independent Franco-German
financial Group

1849 1856 1901 Frankfurter Bank Philippe Oddo In the years following Oddo & Cie acquires The Group becomes
and Berliner becomes partner the reform of the legal Close Brothers Seydler and ODDO BHF and puts
Camille Gauthier Leading private As the central bank Handels-Gesellschaft of Oddo & Cie status of stock broker Meriten IM in 2015 and in place a Franco-
becomes a stock bankers establish for private banks in merge to become alongside his in France, the Oddo then BHF-BANK in 2016, German management
broker in Marseille. Berliner Handels- Frankfurt, Frankfurter BHF-BANK, a step brother’s stake Group experiences a aiming to create a leading team, made up of
Gesellschaft in Berlin. Bank soon benefits from that attracts great in the company. period of rapid yet steady financial institution four German and
a strong reputation in attention at the time. Philippe Oddo puts growth, both internally in the eurozone. four French members,
Germany. As of 1901, in place a collegial and externally with the heading up the
1884 when the Reichbank system which still acquisition of Delahaye different businesses
is fully established as a operates today Finance, Pinatton, and entities at
Carl Fürstenberg
central bank, Frankfurter and allows great NFMDA, Cyril Finance, a group level.
(1850-1933)
Bank secures a new position continuity in the Banque d’Orsay
starts working at
as an asset manager. Group’s management. and Robeco.
Berliner Handels-
Gesellschaft
in 1884. Under
1854 his leadership,
Frankfurter Bank is BHG becomes
founded as a central one of the leading
bank for the Free German banks
City of Frankfurt. in the industrial
business.
 Our values
Our philosophy 08 Our philosophy 09

Driven
Employees motivated by
an ideal of excellence and by
a constantly renewed commitment

Stable
Determination to work on a long-term
basis with employees, partners and clients,
ensuring trust and integrity

Unique
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
A unique Franco-German group model,
a quality of relationship that the client
cannot find anywhere else

Independent
Freedom of spirit and action
acknowledged by our clients

Entrepreneurial
A family-owned company in which
employees have a stake in the share capital
and thus similar interests to clients
 We share the same
Our philosophy 10 Our philosophy 11

Oddo Generation fund

values as family-owned Since 1996, Oddo Asset Management has managed

the mutual fund invested in family-owned companies.

companies
Oddo Generation CI-EUR
+ 478% total performance*
+8.9% annualised

Our conviction
600

500
CAC 40 Net Return
+277% total performance*

Family-owned companies
+6.7% annualised
400

invest steadily and benefit from

a stable ownership structure, 300

outperforming the indexes

in the longer term.
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
200
Euro Stoxx Net Return
+269% total performance*
+6.6% annualised
100

All ODDO BHF business activities maintain

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

a strong link with family-owned businesses.

* Past performance is no indication of future performance and is not constant over time
Source: ODDO BHF AM, Bloomberg, data between 30.12.2006 and 30.12.2016
Since 1996 Since 1996

+478% +277%
Corporates & Markets,
a key partner for family-owned companies.

Oddo Generation CAC 40 Net Return

CI-EUR Total performance*
Private Wealth Management accompanies Total performance*
these companies through the Family Office.
Our Asset Management branch manages a fund
dedicated to family-owned companies.
+8.9% +6.7%
annualised* annualised*
 Talent at the heart
Our philosophy 12 Our philosophy 13

of our strategy We foster the development

of our talent

63
The Group has a specific ownership
structure as 60% of its capital is held
by the Oddo family and 30%
by employees. This “partnership”
ethos guarantees the long-term
involvement of the teams. graduates hired

34
3
4 in 2016
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
43 y.o.
Capital structure
internal
transfers
2
1
1 Oddo family
2 Employees
60%
30%
in 2016
average age
3 Téthys (Bettencourt-Meyers Holding), 5%
Boussard & Gavaudan
4 Others 5%

67%
of French employees
21%
of German employees
A unique European Talent Program
We recruit graduates on permanent contracts for our various
activities. For three years, they work on projects in France and Germany,
discovering the Group’s different business activities, following specific
training schemes and receiving support from a mentor.
have invested in the Group’s capital: a very important sign of mutual In 2016, 8 candidates joined the European Talent Program.
commitment, enabling us to continue developing over the long term.
 Heads of business lines
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7 Our governance 14 Our governance 15

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
Grégoire Charbit Frank Behrends Christophe Tadié Thomas Fischer Philippe Oddo Joachim Häger Nicolas Chaput Markus Beumer
Group Legal, Compliance, Human Group Finance Group Operations General Partner* / ** Group Private Wealth Group Asset Group Corporates
Compliance Resources, Credit & Risks* / ** Officer** Management* / ** Management & Markets* / **
& Strategy* Risk Management & Starting in June 2017
Strategic Clients in
Germany**

* Collège de la Gérance's members

** Vorstand's members
 Boards
Our governance 16

Collège des Associés Commandités

(Unlimited liability partners' Board)

Gérard Barbot Olivier Marchal

Chairman FIDAT* representative
FIDAT* representative

Philippe Oddo Grégoire Charbit

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

ODDO BHF SCA's ODDO BHF AG's

Supervisory Board Supervisory Board

Jean-Pierre Pinatton Gerhard Cromme Werner Taiber

Co-Chairman Co-Chairman Chairman

Hélène Auriol Potier Grégoire Charbit

General Manager Western Europe Public Sector, Microsoft Deputy Chairman

Diaa Elyaacoubi Sabine Diehl

CEO, Odyssée 2045 Bank clerk, Chairwoman of the Group Works Council, BHF-BANK

Ronald Latenstein van Voorst Johannes Hellmann

CEO, Blue Marlin financial solutions Chairman of the Works Council, BHF-BANK

Laurence Peyraut Bertier Olivier Marchal

General Secretary, Danone France Chairman, Bain & Company

Bernard Ramanantsoa Alexander Mettenheimer

Honorary Director General, HEC Paris Former Spokesman of the Board of Managing Directors,
BHF-BANK
Patrick Werner
CEO, Arum International Michael Rückl
Business Information Technologist,
Member of the Works Council, BHF-BANK

* FIDAT: controlling holding company of the Group

 Our businesses
Our know-how 18 Our know-how 19

The Group invests 20% of its revenues in research and IT systems

• State-of-the art & proven IT systems serving all the business units.
An integrated group that guarantees
high-quality services •O ur research conducted in Paris, Frankfurt and Tunis enables us to offer
informed solutions to our clients across our various activities.

Awards 2016-2017

€uro Magazin / Elite Report 2017, Awards Asset Management 2016

#1 #1 €uro am Sonntag Handelsblatt organised by l'AGEFI
for French stocks broker in Western Europe Golden Bull for best #1 Portfolio Manager Oddo ProActif Europe: best fund in
in High Yield Research portfolio management for the 11th time in a row the category diversified funds in Europe
of the year 2017 (including eurozone)
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
Corporates & Markets Private Wealth Management Asset Management
 Our businesses
Our know-how 20 Our know-how 21

+60 CORPORATE FINANCE

Corporates & Markets

people The independent Franco-German investment bank focusing on French
and German midcaps

100
Over
We accompany our entrepreneurial clients on various corporate
finance transactions on the long-term.
transactions in 2016 Our services encompass advisory in M&A, financing, stock markets
and placements in equity and debt capital markets.
Take advantage of our comprehensive and unique platform, benefiting
from our strong market expertise and deep knowledge, especially in
France and Germany. We are an expert on entrepreneurial firms both
listed and non-listed, family or private equity owned.

#1 SECURITIES
1 CORPORATE BANKING
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
Extel 2016: Leading-edge research activities on the equity and dedicated contact Long-term banking partner for a long-term relationship
1st broker for French bond markets at the heart of intermediation to the customer
equities & in the League
Tables for German
For corporates and private equity investors, we offer

100%
equities With decades of experience in capital markets and Access to comprehensive Corporate Advisory – solutions enabling
a wealth of local expertise, we see our role as that of a liaison strategic decisions and development.

#1
between institutional investors, issuers and the markets. We provide a range of tailored services such as individually
We are renowned for our independent financial analysis and excellent of the mid market structured loans, liquidity management or flexible hedging
Euromoney 2016: execution and also support you as a designated sponsor. In Germany, PE houses
strategies for the management of interest rate and currency risks.
1st broker in Western we are one of the most important Forex traders.
Europe in High Yield
Research

€1.1 bn
100
METALS More than INTERNATIONAL BANKING
in sales Global market access for metal industry Expert in trade and export finance

200
covered countries
Metals trading in aluminium, copper, zinc and tin. As one of the leading German banks in trade and export finance,
We offer a full range of services for the metal processing industries: we draw on a wide network of around 350 correspondent banks
metal processing clients access to the physical market, supply chain, logistics and innovative in approximately 100 countries, especially emerging markets.
in Europe and in Asia solutions for financing and hedging. Our activity is ISO 9001 – Take advantage of our expertise in trade and export financing:
ISO 14001 certified. letters of credit, ECA financing, forfaiting, guarantees and
international payments.
 Our businesses
Our know-how 22 Our know-how 23

Asset Management Private Wealth

Management

7 ASSET MANAGEMENT
Long-term view, long-lasting partnership
€6 bn PRIVATE WEALTH MANAGEMENT
Wealth management experts at the service of private clients
locations: assets under
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
Paris, Milan, Geneva, management / OBP*
Frankfurt, Düsseldorf, *Paris, Strasbourg,
We are one of the largest independent asset managers in the eurozone. We provide wealthy private clients with overall support.
Our size and focused approach enable our expert teams to deliver Your private banker coordinates the experts inside and outside the
Madrid, Stockholm Lyon, Bordeaux

€22 bn
efficient, innovate and flexible asset management solutions to our Group who can best answer your needs. Our internal experts will
institutional and wholesale clients. Capitalizing on a long track record provide you with tailor made investments and wealth engineering
for generating alpha across most asset classes, we aim to be your solutions. We pay particular attention to the availability of staff,
long-term investment partner. Our 2 entities are Oddo Meriten AM confidentiality and total transparency regarding performance, risks
assets under
management / BHF PWM**
(Paris & Düsseldorf) and FRANKFURT-TRUST AM (Frankfurt). **Frankfurt, Mainz, and costs. As a Franco-German group, we have strong expertise on
Berlin, Munich, Cologne,
Baden-Baden, Hamburg,
the European market.
Nuremberg, Düsseldorf,
Hannover, Essen,
Stuttgart, Münster

€6 bn INDEPENDENT FINANCIAL ADVISORS

Innovation & expertise at the service of our IFAs partners
33 ACCOUNT SAFEKEEPING & CUSTODIAL SERVICES
A front-to-back offer to boost our clients’ operating efficiency
assets under external clients:
management 3 private banks,
27 asset managers and

80,000
For over 25 years, we have focused our efforts on developing 3 insurance companies
We provide a full range of outsourced back-office services
an innovative and unique bespoke offer at the service of our and front-office solutions to private banks, asset managers and

partners and their clients.
clients in France We provide you with a complete range of savings products designed
to meet specific needs: tax optimisation, life annuities…
Take advantage of the Group‘s expertise notably in asset management
and our time-saving digitised processes.
150,000
insurance companies.
Our clients benefit from our in-house platform providing white label
account keeping and custody services as well as front-office tools for
our institutional partners and their clients. The platform is regularly
accounts and
contracts, 141 funds,
€33 bn in custody updated in order to comply with the new regulatory requirements
and administration
and upgraded to offer added functions. Through our tried and tested
solutions, as well as our tight control, we take care of your deadlines
and pay unwavering attention to the quality of service.
 We offer a broad range
Our know-how 24 Our know-how 25

of financial services for

people and businesses
 OU ARE AN
Y  OU ARE A COMPANY
Y  OU ARE A PRIVATE CLIENT
Y  OU ARE A WEALTH MANAGEMENT
Y
INSTITUTIONAL INVESTOR Large cap, mid and small cap, next cap,
unlisted company, fund...
Individual client, association, congregation,
foundation, business head, family office…
COMPANY OR AN IFA
Asset manager, insurer, private bank,
regional bank, pension fund, bond issuer,
specialist fund, hedge fund...

Private wealth
management … for your investment and business needs
will find solutions…
that suit you best

Asset
management … bespoke investment solutions tailored to
… award-winning, high quality investment solutions … a broad range of best in class investment funds
will find you…
achieve the desired results
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
Account
safekeeping … tailored solutions to safekeep
custodial services your clients’ assets and state-of-the art
will design... digital platforms

IFAs business
will coordinate… … the most appropriate solutions for your investments, … a range of bespoke services you will offer
based on top-quality advisory services to your clients

Corporate … going public, carrying out a capital increase

finance or placing a block / optimising your capital
will advise you on… structure, issuing a bond, a private placement … your activity and will help you to find investors
or a schuldscheindarlehen / buying or selling
a company or a stake / management packages
Corporate
banking … leveraged finance solutions & access to … credit, leases, treasury… to help you
… advice on all matters related to your corporation
will offer you…
German corporate loan portfolios grow your business

International
banking … financing your cross border trade with
will advise you on…
+100 countries especially in Africa

Brokerage
on equity & … a unique financial analysis
bond markets and trading execution
will provide you with…

Metals trading
will organise for you… … metal supply, logistics, hedging
and financing solutions
 We act for a more
Our know-how 26 Our know-how 27

sustainable future
Our objectives Areas of commitment

• To be involved in our society • Respond effectively to urgent situations in the world

• To join forces on common actions and projects • S upport research and development over the long term…
• To provide structure and continuity … Through two partnerships:
to our philanthropic initiatives
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
• Support initiatives that contribute to the development of society • Social projects
• Promote new ways of thinking to respond to social problems • Science projects with social impact
• Artistic creation
• Artistic education

Our businesses • T o respect and further the ten principles of • O ur Metals entity obtained ISO 9001 and ISO 14001 certification in June 2015.
• F or over 10 years, the Securities activity has been a committed player when it
are committed the United Nations Global Compact on human rights,
to Corporate Social international labour standards, environmental protection
and anti-corruption. comes to the issues of sustainable development and CSR. In 2016, it organised
Responsibility (CSR) the 11th Environment Forum as well as the 7th ESG / Impact Club during
the Oddo Forum.

• A sset Management activities have signed the United Nations Principles for
Responsible Investment (PRI). Significant ESG criteria for investors are taken
into consideration in our analysis and assessment of issuers.
 Meet us 28 Meet us 29

Our offices

Stockholm
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
New York
Madrid
Tunis
Cairo
Abu Dhabi
Hong-Kong

Hamburg
Berlin Ho Chi Minh City
Hanover
Münster
Essen
Düsseldorf
Brussels Cologne
Frankfurt
Mainz
Luxembourg Nuremberg
Paris Stuttgart
Strasbourg Baden-Baden
Munich
Zurich
Geneva

Lyon Milan
Bordeaux
 Key figures
Meet us 30 Meet us 31

Clients’ assets (€ bn):

> 100
Net profit after tax
(€ m)

2016 136

2015 92
2014 54.1

+48%
2013 71.7
2012 50.9
2011 36.4

Total headcount:

2,300
Net banking income
O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7

O D D O B H F —ACT I V I T Y R E P O R T 2 0 1 7
(€ m)

2016 577

37% of employees own 30% 2015 426

of the share capital 2014 315

+35%
2013 298
2012 301
2011 268

Solvency ratio:

15%
Shareholders’ equity
(total consolidated shareholders’ capital, € m)

2016 814

one of the highest levels 2015 742

of solvency of European banks 2014 539

+10%
2013 489
2012 433
2011 409

Data at 01.03.2017
 La finance au service de vos ambitions
Die Bank für lhre finanziellen Ziele

Paris
12, boulevard de la Madeleine
75009 Paris
France

Frankfurt
Bockenheimer Landstrasse 10
60323 Frankfurt am Main
Germany

oddo-bhf.com