E X A N EI N B R I E F

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With a net profit of €36.3 million, Exane delivered a satisfactory financial performance, whilst maintaining a high level of investment.

Cash Equities (Exane BNP Paribas) remained very dynamic: an increase in volumes traded and leading sector research (ranked No. 2 in Europe(1)) helped add 10% to our market share.

Derivatives (Exane Derivatives) fared well in terms of the flow business (Options, Convertibles, Delta One), whereas the structured products/proprietary indices activity registered a marked decline in 2016.

Asset Management (Exane AM and Ellipsis AM) had an excellent year, with net inflows exceeding €1 billion, bringing assets under management up to €9.3 billion(2). EAM registered very impressive returns again in equity funds, particularly on its long only equity Select fund.

All in all, the Group franchise enjoyed strong growth in 2016, confirming its increasingly solid status as a leader in European equities.

Nicolas ChanutCEO

(1) 2016 Extel Pan-European Survey.(2) As at 31 December 2016.

N E T B A N K I N G I N C O M E

401.6mE M P L O Y E E S

935N E T P R O F I T

36.3m

(1) Exane Group’s key managers and experts.

50% of the capital60% of the voting rights

50% of the capital40% of the voting rights

A N I N N O V AT I V E A N D E F F E C T I V E

P A R T N E R S H I P W I T H B N P P A R I B A S

The partnership agreement established between Exane and BNP Paribas in 2004, and significantly strengthened in 2010 and 2011, was renewed in its entirety in April 2015 for a five-year period, reflecting the high level of mutual confidence and trust. It is built around three core elements:

An operational partnership in European cash equities where BNP Paribas conferred exclusivity to Exane under the Exane BNP Paribas brand.

A balance sheet partnership which is particularly well suited to our Derivatives business, providing financing and support for our rating.

A capital partnership uniting the strength of BNP Paribas with the independence of Exane.

100%

EXANE PARTNERS(1)

VERNER INVESTISSEMENTS

BNP PARIBAS

EXANE

EQUITIES

RES

EAR

CH

INVESTMENT

CASH EQUITIES

European Equities

DERIVATIVES

DerivativesEquities

Convertibles

Credit Proprietary Indices

Investment solutions

ASSET MANAGEMENT

L/S EquityLong Only Equity

Convertibles

Credit and volatility management

A S T R O N G

C U LT U R E For more than 25 years, Exane’s growth has been grounded on 3 funda-mentals: the world of Equities, Investment expertise (trading and asset management) and top-class Research in equities and derivatives.These three pillars of our business model are underpinned by 3 core values that have shaped the Group’s culture since its creation.

Specialising in European equities, Exane is active in 3 businesses:

3 B U S I N E S S L I N E S

FUNDAMENTALS EquitiesInvestmentResearch

VA LUE S

ExcellenceIndependence

Commitment

C A S H E Q U I T I E S

A NA LYSTS, SA LE S,SA LE S-TRA DER S

A ND TRA DER S

250

PA N-EUROPEA NEQUI T Y SEC TOR S

RE SEA RC H (1)

No.2

IN PA N-EUROPEA NVOLUMES TRA DED

€270bn

Exane BNP Paribas is one of the most dynamic equity brokers in Europe with 4.5 % market share after many years of consistent growth. This momentum has been thanks to a policy of substantial investment maintained across the economic cycle.

A UNIQUE RESEARCH PRODUCT

> Independent, fundamental long-term research on 600 Pan-European stocks, ranked 2nd best sector research in Europe(1).

> A dedicated sales force in close proximity to clients.> A Corporate Access team integrated within sales and research.

A TOP-RANKED EXECUTION PLATFORM

> A full range of services: high touch sales trading, trading, facilitation, program trading, ETF, electronic trading.

> Execution tailored to serve clients.

> Traded volumes tripled over the past four years.

A STRONG PRESENCE AMONG CORPORATES

> Exane BNP Paribas is the exclusive distributor for European ECM transactions originated by BNP Paribas.

> A Corporate Broking team active on share buy-backs, management of listed stakes and liquidity contracts.

PROPRIETARY ELECTRONIC PLATFORM

INDEPENDENCE ........................... No high frequency

TRANSPARENCY .......................... Third-party TCA

CLIENT SERVICE .......................... Very experienced teams

LIQUIDITY .................................... Access to exclusive liquidity (No.1 in France)

TAILOR MADE .............................. Strategies adaptable on request

INFRASTRUCTURE ....................... Cutting-edge technology (colo, FPGA, SuperSor)

ANONYMITY ................................ Segregated teams and systems

CLIENT

(1) 2016 Extel Pan-European Survey.

(1) 2016 Extel Pan-European Survey. (2) On average, over the past three years, as at end-2016. (3) Eurex, 2016 (on block trades, in market share of notional traded).

USING OUR EXPERTISE TO SERVE INVESTORS

Market Making in the main European markets

OPTIONS On equities

- No. 1 in Europe with 9.1% market share(3)

- 250 European equities

On indices - 7 general indices and 8 sector indices

FUTURES On equities, indices and dividends

CONVERTIBLE BONDS - 200 bonds covered

Creation of investment solutions

Analysis of investor contraints, market parameters and regulation

Investment opportunities identified by our research teams

- Convertible bonds Research ranked in the European Top 3

for over 10 years- Options- Equities

- Credit- Asset allocation

LIQUIDITY PROVIDER

SOLUTIO

NS

CO

NV

ICTI

ONS

INVESTORS

A longstanding player in flow products, Exane Derivatives has developed a comprehensive range of services spanning research to execution.

CONVICTIONS AND SOLUTIONS

> High value added investment ideas across all asset classes, especially our historical franchise (Convertibles and Options).

> Bespoke solutions for each investor profile.

> Sales teams in tune with client needs.

LIQUIDITY PROVIDER

> A competitive execution platform.

> Market Making on European equity and index options, futures and convertibles by award-winning teams.

> Controlled risk management.

D E R I V AT I V E S

C ONVER TIBLE S RE SEA RC H A ND

SA LE S (1)

No.3

EQUI T Y OPTI ON S MA RKE T MAKING (3)

No.1

INVE STME NT SOLUTI ON S I SSUED

EAC H YEA R (2)

1,200

collective funds

(1) As at 31 December 2016.

SPECIALISED FUND MANAGEMENT ON ADDED VALUE ASSETS

A S S E T M A N A G E M E N T

EXANE ASSET MANAGEMENT

Since its launch in 2001, Exane asset management, focused on European equities, has offered sectorial specialist fund management that aims to deliver steady, long-term capital growth for its clients (institutional and corporate, distribution networks and multi-management). EAM, which is an European benchmark player in the management of market-neutral long/short equity funds (direct and collective), has also included directional equity funds within its offer.

ELLIPSIS AM

Ellipsis AM is a leading manager of European convertibles and is diversifying into volatility and credit funds. Based on a research-driven investment philosophy, its portfolios reflect its convictions with active and tactical risk allocation.

CREDIT FUNDSHigh Yield, Short Term,

Credit Allocation

CONVERTIBLE FUNDSEuropean Convertibles

EXCLUSIVE FUNDSDividends, Overlay, Long/short Credit

Directional equity fundsMarket-neutral long/short equity funds

zephyr select

pleiade range

integraleover

drive

archimedes, ceres, gulliver, mercury,

pangea, templiers, vauban

direct funds

FUNDS MA NAGED

15

IN ASSE TS UNDER MA NAGEME NT (1)

7.5bn

IN ASSE TS UNDER MA NAGEME NT (1)

1.8bn

EXANE SA I 6, rue Ménars 75002 PARISTel.: + 33 (0)1 44 95 40 00 Fax: + 33 (0)1 44 95 40 01www.exane.com

AW A R D - W I N N I N G

FRANC HI SE S

(1) 2016 Extel Pan-European Survey. (2) UCITS Hedge Awards 2016, The Hedge Fund Journal.

EXANE ASSET MANAGEMENT

> No.3 buy-side firm in France(1) > No.1 Exane Ceres best Equity Market Neutral fund over 5 years(2) > No.1 Exane Vauban best Equity Market Neutral fund over 1 year(2)

EXANE BNP PARIBAS

> No.2 for Pan-European sector research(1) > 21 sector research teams in the Top 5 in Europe(1)

> No.4 equity broker in Europe(1) > No.1 for Pan-European small & midcaps research(1) > No.3 for equity & equity-linked sales(1)

EXANE DERIVATIVES

> No.3 derivatives and convertibles broker in Europe(1)

> No.3 for convertibles research in Europe(1)

> No.3 for convertibles sales in Europe(1)

P A R I S

L O N D O N

F R A N K F U R T

G E N E V A

L U X E M B O U R G

M A D R I D

M I L A N

S T O C K H O L M

N E W Y O R K

S I N G A P O R E

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