ODDO BHF Foreword
“We have created a unique Group. Our domestic market has more than doubled in size and today we have know-how which is unequalled in the world.”
Philippe Oddo General Partner
PAGE 2 ODDO BHF The first independent Franco-German financial group
ODDO BHF is an independent Franco-German financial services group, with a history stretching back over 170 years. It was created from the alliance of a French family- owned business built up by five generations of stockbrokers and a German bank specialising in Mittelstand companies. With 1.300 employees in Germany and 1.000 in France and more than 100 billion euros in assets under management, ODDO BHF operates in three main businesses, based on significant investment in market expertise: private banking, asset management and corporate and investment banking.
Shareholders France & Tunisia 1. ODDO Family 60% 2. Employees 30% 3. Others 10% employees1.000 The ODDO BHF Group has a special shareholder structure: 60% of the capital is held by the Oddo family, 30% by the employees. This partnership ensures a long-term commitment of the employees to the group. Germany The strength of the strategy and the growth prospects resulting from its presence in the 1.300 two key markets of the Eurozone have already employees been rewarded with an increase in the credit rating.
Key figures(1) of stability
Clients’ assets Net income(2) Core capital Equity Fitch (in billion €): (in € million): ratio: (in € million): Rating: >100 591 16,6% 866 BBB (Total consolidated EK) PAGE 3 (1) As at 31.12.2018 (2) Net income from banking business ODDO BHF Stockholm Locations
Kairo Abu Dhabi Hong Kong
Ho-Chi-Minh Hamburg Berlin Hannover Münster Essen Düsseldorf Bruxelles Köln Mainz Frankfurt Luxembourg Nürnberg France and Germany Stuttgart Paris Baden Baden Strasbourg München as key players in the Zürich Genf Eurozone
Lyon Milano Bordeaux 60% 417 of the Euro Stoxx Large Index listed family-owned represent French and German companies with a capital of companies. over 100 million euros in both countries.
PAGE 4 The history A history of entrepreneurs, know-how & boldness through the years
1850 1856 1987 2017 Camille Gautier Frankfurter Bank Philippe Oddo The Group becomes a stock is founded as a becomes a partner becomes ODDO broker in Marseille. central bank for with his brother BHF and the first the Free City of Pascal Oddo. independent Frankfurt. Franco-German financial Group. 1854 1970 2000-15 Leading private The Frankfurter Dynamic bankers establish Bank and the development. Berliner Handels- Berliner Handels- Gesellschaft in Gesellschaft Berlin. merge to become BHF-BANK.
PAGE 5 By entrepreneurs, for entrepreneurs Families and employees as owners
Competence Many years of experience in capital market business. Independence Best-advice approach – products are selected according to objective criteria. Conservative orientation Active management combined with strict risk control and investment focus on sustainable business models. Performance Successful performance in difficult market environment confirmed by independent tests.
PAGE 6 Spuerkeess
Setting the standard:
More than 160 years of Spuerkeess is the highest Aa2 Long Term Deposit AA+ Rating Safest Bank Award – history. rated financial institution Rating Moody’s. Standard & Poor’s. Luxembourg. in the Grand Duchy of Luxembourg, and counts as Rated among the ten safest one of the safest banks in banks since 2011 by Global the world. Finance Magazine.
PAGE 7 The best of both worlds Combining the strenghts of Spuerkeess and ODDO BHF
Spuerkeess ODDO BHF
• Excellent customer satisfaction • Excellent portfolio management 92 % customer satisfaction in latest ODDO BHF has been offering first-class TNS ILRES survey. asset management solutions for many years. • Strong local presence Highly qualified and experienced • Supporting Spuerkeess market private banking advisors located in the Supporting Spuerkeess sales activities 19 Liberté Banking Center. with skilled experts. • Your wealth in good hands • Focus on customer needs Individual and personalized If necessary, ODDO BHF offers monitoring. individual or fund-based solutions and new ideas (such as in the area of sustainability).
PAGE 8 ActivMandate Discretionary management
ODDO BHF as an independent With ActivMandate, a team of experts manages your assets under a investment advisor within mandate. Investment decisions are taken independently according to a predefined strategy. ActivMandate ODDO BHF is one of the leading portfolio managers Not only does ActivMandate offer you the possibility to delegate the in the German-speaking area. With proactive management of your portfolio, it also enables you to take advantage investment decisions that are fast, consistently of a comprehensive offering of management-related services. With implemented, and based on sound knowledge of discretionary management, your investments are diversified across the market, ODDO BHF strive to safeguard your different asset classes based on your investor profile. assets and achieve an attractive yield at the same time.
Client Spuerkeess ODDO BHF Your discretionary ODDO BHF acts as an management independent investment mandate is signed advisor and gives with Spuerkeess and recommendations your personal Private regarding the tactical Banking Advisor is asset allocation and asset firstfive €uro Magazine there to listen to you selection within your Top ranking 2019 Portfolio Manager and support you in all discretionary management for the third year of the Year for the your projects. mandate. in a row third time in a row
PAGE 9 Portfolio management 4-step investment process
01 02 03 04 Strategic asset Tactical asset Selection & timing Controlling & risk allocation allocation management Assessment of individual Over and underweighting Security selection based Controlling process with circumstances of asset classes within on clearly defined clearly defined areas of given bandwidths guidelines responsibility Definition of wealth strategy and fixation of Determination of Ongoing monitoring of Regular reviews of asset class bandwidths regional, sectoral investments across all portfolio structures and industry-specific asset classes based on risk analyses investment focus
Client and advisor Global Investment Portfolio management Portfolio management / Committee / portfolio risk service management
PAGE 10 Selection & timing Profile
We look for... We avoid...
• Sustainable business models • High valuation relative to (competitive advantages) company figures (profit, free cash flow) • Steady operating profits • High investment pressure • Attractive valuation • Very cyclical business • High capital profitability performance • Markets with low degree of • High level of indebtedness competition • Highly competitive markets • Low level of indebtedness and low degree of product differentiation • Non-cyclical business development • Unreliable management • Long-term earnings strength • Negative earnings surprises • Low priced companies without quality
PAGE 11 Selection & timing Equities | Overview
Investment Screening Qualitative Portfolio universe & scoring analysis Markets Business quality Business model Quota management • STOXX 600, CDAX, • Profitability • Brands / patents • Active management S&P 500 • Stability • Switching costs based on the Global • Capital efficiency • Network effects Investment Committee • Approx. 1.200 • Balance sheet quality • Cost benefits companies Stock selection Company valuation Management quality • Out of benchmark • Market capitalization • Free cash flow yield bottom-up selection up from € 500 mn • Shareholder value / Regional positioning EBIT Risk management • Price-earnings ratio • Continuous risk valuation • Dividend yield and risk management
Europe and US Special Data-based analysis Own analyses Focused portfolio investment themes (Factset, Bloomberg) through mutual funds Corporate meetings High quality stock Investor conferences selection Analyst reports
PAGE 12 Selection & timing Bonds | Overview
Investment Sector Selection Portfolio universe analysis Markets Debt sustainability Evaluation of balance Pick of preselected • Sovereign bonds • Stability sheet figures bonds • German covered bonds • Future viability • Net Debt / EBITDA • Corporate bonds • Liquidity • Interest payments Selective addition of • High yield • Rating stability mutual funds covering Market environment • Default probabalities special subjects • Yield advantage • Expected spread • Duration development • Market depth • Liquidity • Issuance activities
Focus on EUR, USD Database-driven analysis Own analyses, analyst High-quality bond selection Addition of common reports, corporate currencies meetings
PAGE 13 Selection & timing Bonds | Overview
Total International International Return Equity / Bond Equity-oriented Portfolio
25% 25% 50% 10% 10%
20%
50% 40% 70%
• Generating positive returns in • Balanced participation in the • Participation in the investment excess of money market returns investment opportunities offered opportunities offered by equity • Avoiding losses on twelve months by the equity and bond markets and bond markets horizon • Preservation of capital not guaranteed
PAGE 14 Black: Money & Currencies / Gold: Bondw & Bond Funds / Grey: Equities & Equity funds * Asset allocation of June 2019. The allocation can vary over time. Selection & timing Equities | Our stock selection more attractive than general market indices
2017 2018 2018 2019 1st place 1st place 1st place Overall Winner
2017 2018 2019 1st place 1st place 3rd place 60 months 60 months 36 months 2017 2018 2019 2019 2nd place 3rd place 1st place 1st place 36 months 36 months 12 months 60 months
Five year period (1) Five year period (2) Asset management Five year period of the year (3) 1st place for the third time in a row (4)
(1) firstfive Ranking Vermögensverwalter in December 2016 – Award February 2017 PAGE 15 (2) firstfive Ranking Vermögensverwalter in December 2017 – Award February 2018 (3) Goldener Bulle in the years 2016 - 2018 – Release January 2018 (4) firstfive Ranking Vermögensverwalter in December 2018 – Award February 2019