CREDIT RISK MANAGEMENT BEYOND NUMBERS

Stock Market Review Department of Economic and Stock Market Analysis

Week 26– from June 27th to June 30th 2017 (Source BRVM)

Bloomfield Investment Corporation is a pan-African credit BRVM 10 3.64% 232.06 rating agency which specializes in the assessment of the credit k risk. Headquartered in with offices in Douala and in 1.66% Kigali. the agency operates essentially in Africa. BRVM COMPOSITE k 262.39

Accreditation UEMOA AN-001/2012 Listed Companies 43 RWANDA ref/CMA/July/3047/2015 Evol Value Average PER* m 20.86 th Headquarters Plateau. BIAO-CI Tower. 15 floor. Average yield / share* k 6.30% Abidjan - Côte d’Ivoire Market capitalization (billion FCFA) m 6 566 Trading volume (shares) 1 763 264 Website www.bloomfield-investment.com Trading volume (bonds) 5 641 Value traded (shares) 4 392 807 995 Value traded (bonds) 56 406 000 Follow us * Calculated on the basis of the latest financial information published without consideration of companies in liquidation The Stock Market Tops Flops

Price Evol% Vol Val (000) PER Y/S Price Evol% Vol Val (000) PER Y/S

SODE CI 63 000 12.10% 344 19 827 20.9 5.1% SOLIBRA CI 138 750 -12,18% 131 19 139 8,3 3,0%

BANK OF AFRICA ONATEL BF 9 395 7.93% 14 982 132 408 13.3 6.6% 32 385 -11,96% 569 19 919 9,6 3,1% S

VIVO ENERGY CI 1 495 7.55% 8 338 12 014 21.5 2.2% SICABLE CI 51 200 -7,75% 8 412 10,8 2,3%

CIE CI 68 000 6.25% 629 41 369 17.7 3.9% SMB CI 16 640 -7,56% 214 3 532 5,9 2,7%

Sector Indices Value # Avg Avg Value Evol% Evol YTD Volume traded Companies PER Y/S (MFCFA) BRVM – Industry 12 119.81 -6.23% -23.17% 26 301 1 441 26.4 5.9% BRVM – Publics Services 4 735.43 4.57% -5.08% 67 303 1 420 15.8 5.5% BRVM – Finances 12 98.51 0.46% 3.69% 1 611 969 894 12.3 6.0% BRVM – Transport 2 1 040.86 -1.96% -27.31% 60 1 31.9 5.6% BRVM – Agriculture 5 189.32 -1.10% -8.70% 10 028 117 36.6 13.5% BRVM – Distribution 7 407.15 3.10% -29.44% 47 603 520 21.2 3.8% BRVM - Other Sectors 1 246.91 0.00% -42.86% 0 0 2.4 0.0%

Market Trends The BRVM ended this week up, with 232.06 points for the BRVM 10 index (+3.64%) and 262.39 points for the BRVM Composite index (+1.66%). The capitalization of the equity market stood at 6 566 billion FCFA. The equity market transactions amounted to 4.4 billion FCFA at the end of the week, mainly driven by Industry, Public Services and Finances sectors which accounted for 85% of the transactions. SODE CI stock recorded the largest growth with a gain of 12.10%, while SOLIBRA CI stock shown the largest decline with a fall of 12.18%. On the commodity market, gold and silver prices plunged again, while oil and gas prices shown a net recovery. CREDIT RISK MANAGEMENT BEYOND NUMBERS

The Stock Market The Chief Economist’s Analysis [a focus on BOA CI] The BOA Cote d’Ivoire ended the year 2016 with a net profit of 10.149 billion FCFA, up by 23.17% compared to the end of 2015. At the end of the 2017 first quarter, the bank posted a net banking income of 7.090 billion FCFA, almost the same level (+0.9%) as in the first quarter of 2016. The bank explains this performance by a significant increase in interbank charges, which limited the 23.6% increase in the interest margin on the customer base. The company's net profit stood at 2.614 billion FCFA, a slightly increase of 4% compared to the end of March 2016, due to good control of operating expenses, despite an increase in the net cost of risk (+ 8%). On the stock market, BOA Cote d'Ivoire share price followed a generally upward trend in the first months of 2017, justified by the company positive results as well as the dividends in perspective, paid on 8 May 2017. At the same date, BOA CI share price was up by 25% from its level at the beginning of 2017. Then, it stagnated around 174 000 FCFA once the payment of dividends passed, reflecting a lower interest of investors for it. The share price stands at 87,900 FCFA at 30 June 2017, up by 26.5% compared with its level at the beginning of 2017 (taking into account the effect of the issue of free new shares on the share price). The policy of controlling interbank charges and cost of risk, coupled with a good quality of the portfolio should positively impact the results of the bank. However, the concentration of the credit portfolio on the largest customers remains a sensitive point. News BRVM Corporates Market News  [NSIA Banque]: NSIA Banque Côte d'Ivoire [CAMEROON]: According to a statement by the announced the launch of a public offer to sell International Monetary Fund, after having initially 4,011,500 shares, representing 20.06% of the capital shown some resilience to shocks (caused by the slump at a press conference. The subscription period is from in oil prices and increased security threats), 03 to 13 July 2017 and the sale price of the share is Cameroon's economic growth has weakened to 4.7% 6,750 FCFA for the bank's eligible staff and 9,000 in 2016, compared with 5.8% in 2015. The inflation FCFA for natural and legal persons. This operation, rate averaged 0.3% in 2016 and is expected to remain which is expected to enable the bank to increase its below the CEMAC convergence criterion of 3% in the capital, is also part of the dynamics of the financial medium-term. The fiscal deficit has widened to 6.5% market animation through the sale of shares held by in 2016, compared with 2% of GDP in 2015, mainly the State of Cote d'Ivoire in the capital of NSIA Bank. due to higher capital spending and lower revenues. For the year 2017, the economic growth rate is  [CFAO]: CFAO officially inaugurated its expected to 4%. second shopping center in Cote d'Ivoire, "Playce Palmeraie". The new shopping center, with a surface [ZAMBIA]: Addressing the media, Zambia's Finance of 29,000m2, is home to both a Carrefour Market Minister said that his country may default on the supermarket and 24 brands. This opening is part of repayment of Eurobonds issued at the time of their the overall strategy of CFAO Retail in the large retail maturity if the main challenges facing public finances sector in Africa. are not resolved in time. These challenges relate in particular to public debt sustainability, as well as the  [CIE]: With a capacity of 90 MW, the first turbine of difficulties linked to domestic resource mobilization the Soubré hydroelectric dam was commissioned on and fiscal consolidation. The country has already 30 June 2017. Delivered sooner than expected, this issued three Eurobonds for amounts of 750 million US new dam with a total capacity of 275 MW is expected $, 1 billion US $ and 1.25 billion US $, with maturities to increase with time the power generation capacity of of 2020, 2024 and 2027 respectively. If the default Cote d'Ivoire from 1924 MW to 2200 MW. It cost 572 occurs on the repayment, the capacity to borrow on million US $ and was financed 85% by China and 15% the international markets of Zambia would be by the Ivorian government. negatively impacted, resulting in raising funds at higher interest rates. CREDIT RISK MANAGEMENT BEYOND NUMBERS

The Stock Market Industry Sector Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio SICABLE CI 51 200 -7.75% 8 412 10.81 2.34% 5.4% 14.9% FILTISAC CI 17 735 4.32% 1429 24 032 15.91 8.46% 8.4% 10.1% NEI-CEDA CI 1 200 0.00% 31 37 N/A 18.75% -3.7% -19.7% NESTLE CI 49 495 -4.82% 171 8 543 16.49 1.27% 2.4% -772.8% CROWN SIEM CI 25 800 -0.39% 9 232 34.27 4.71% 2.7% 7.8% AIR LIQUIDE CI 7 800 -4.88% 166 1 344 98.58 8.08% 0.9% 2.4% SOLIBRA CI 138 750 -12.18% 131 19 139 8.29 2.96% 14.4% 42.1% SMB CI 16 640 -7.56% 214 3 532 5.86 2.70% 4.1% 579.6% SITAB CI 74 000 0.00% 15861 1 173 522 22.30 5.57% 5.1% 18.8% TRITURAF CI-Ste en 490 0.00% N/A N/A N/A N/A N/A N/A Liquidation CI 14 500 -3.33% 29 424 N/A 8.50% -12.8% -104.3% UNIWAX CI 24 995 -3.48% 8252 210 238 25.38 1.94% 11.0% 59.8%

Public Services Sector Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio CIE CI 68 000 6.25% 629 41 369 17.66 3.88% 1.8% 42.9% ONATEL BF 9 395 7.93% 14982 132 408 13.29 6.59% 15.3% 31.1% SODE CI 63 000 12.10% 344 19 827 20.94 5.14% 3.1% 21.3% SONATEL SN 24 000 3.85% 51348 1 226 507 11.12 6.25% 23.9% 35.2% Financial Sector Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio BICI CI 83 000 0.00% 58 4 814 11.48 5.10% 34.1% 28.2% BANK OF AFRICA BN 95 990 -6.81% 98 9 381 7.71 9.31% 11.5% 24.5% BANK OF AFRICA BF 99 845 3,67% 77 7 563 8.83 6.94% 39.7% 41.9% BANK OF AFRICA CI 87 900 -0.68% 68 5 888 8.66 6.23% 18.9% 50.8% BANK OF AFRICA M 43 995 -3.31% 1533 67 771 9.64 6.34% 23.6% 31.6% BANK OF AFRICA NG 59 645 -8.24% 316 20 252 10.29 8.23% 24.1% 27.2% BANK OF AFRICA S 32 385 -11,96% 569 19 919 9.59 3.09% 10.5% 40.5% CORIS BANK INTERNATIONAL 50 000 4.17% 9694 471 209 19.08 2.24% 48.9% 65.5% BF TRANS. INCORP. TG 18 5.88% 1591895 27 727 5.08 6.71% -52.1% 6.3% SAFCA CI 17 500 0.00% N/A N/A 32.02 8.23% 0.3% 1.2% SGB CI 149 000 -0.67% 800 122 040 13.08 3.51% 30.3% 46.4% SOCIETE IVOIRIENNE DE 20 000 -2.44% 6861 137 205 11.70 4.28% 33.7% 47.1% BANQUE CI Distribution Sector Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio SERVAIR ABIDJAN CI 2 600 0.58% 4519 11 362 27.09 3.46% 8.7% 57.3% BERNABE CI 108 000 -0.91% 20 2 068 14.95 5.09% 5.4% 20.7% CFAO CI 57 000 0.00% 47 2 764 25.25 4.03% 6.3% 20.0% TRACTAFRIC MOTORS CI 250 000 4.17% 2 505 17.24 5.22% 4.7% 27.8% VIVO ENERGY CI 1 495 7.55% 8338 12 014 21.46 2.21% 1.6% 26.5% TOTAL CI 15 000 3.45% 29126 403 230 21.26 3.00% 2.7% 28.6% TOTAL SN 16 000 3.90% 5551 87 683 N/A 5.84% 0.0% N/A Transport Sector Reference Ratio marge Evol% Vol Val (000) PER Y/S ROE price nette BOLLORE AFRICA LOGISTICS 214 995 -2.05% 4 860 31.94 4.46% 8.8% 19.4% CI MOVIS CI 4 000 5.26% 56 223 N/A 6.75% -11.7% -59.4% CREDIT RISK MANAGEMENT BEYOND NUMBERS

The Stock Market

Agricultural Sector Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio PALM CI 11 000 -4.35% 327 3 672 20.57 5.88% 3.6% 4.9% SUCRIVOIRE 7 995 -0.06% 7838 62 467 50.42 0.00% 0.2% 0.2% SICOR CI 3 605 -1.90% 54 195 31.70 53.23% 9.3% -41.9% SOGB CI 38 810 2.15% 1084 39 011 13.62 4.41% 11.0% 11.9% SAPH CI 15 300 -1.29% 725 11 416 66.85 3.80% 1.0% 1.6% Other Sectors Reference Net margin Evol% Vol Val (000) PER Y/S ROE price ratio SETAO CI 20 000 0.00% N/A N/A 2.42 0.00% 24.8% -21.6%

Other Markets Currencies** Price Evol African Stock Markets

USD / XOF 575.27 -1.86% Johannesburg ALL SHARE -0.72% 3 209.80 Stock Exchange INDEX GBP / XOF 747.18 0.23% m NSE ALL EUR / XOF 655.96 0.00% Nairobi Stock Exchange SHARE -1.08% 152.92 INDEX m JPY / XOF 5.14 -2.42% ALL SHARE Nigerian Stock Exchange 3.10% 33 117.48 CNY / XOF 84.86 -1.05% INDEX k ZAR / XOF 43.99 -2.86% EGX 100 Egyptian Exchange 0.76% 1 509.24 NGN / XOF 1.82 1.15% INDEX k MOROCCAN EGP / XOF 31.73 -1.78% Casablanca Stock ALL SHARE 0.49% 12 015.84 Exchange k KES / XOF 5.54 -1.93% INDEX

* Weekly evolution of the average price (order the day before the close of trading) Raw Materials

Price Evol

Silver (USD/Oz) 16.6 -0.65%

Gold (USD/XAU) 1 242.5 -1.26%

Natural gas 3.0 4.07% (USD/MMBtu)

Crude oil (USD/bbl) 46.3 7.44%

Cococa London (GBP/t) 1 496.3 -0.64%

Cacao New York (USD/t) 1 932.0 3.51%

Coffe US (USD/lb) 126.0 2.19%

Rubber (JPY/kg) 200.0 2.56%

Palm oil (Riggints/t) 2 596.0 0.27% CREDIT RISK MANAGEMENT BEYOND NUMBERS

Credit Ratings (1/3)

Long term Short term Rating Company name Country Sector/ Activity expiration Last Rating Perspective Last Rating Perspective date

CIE Cote d'Ivoire Electricity AA+ Stable A1+ Stable 30/09/2017

IDT Cote d'Ivoire Tobacco distribution Confidential 01/11/2016

Rating Loyale Assurances SA Cote d'Ivoire IARD Insurances BB- Negative C Negative expired

Loyale Vie SA Cote d'Ivoire LIFE Insurances A- Stable A2 Stable 31/07/2017

Manufacturing and OMNIUM BBB+ Positive A3 Positive 30/05/2017 distribution of batteries

Promoting access to ONEP Cote d'Ivoire BB- Stable B Stable 30/09/2017 safe drinking water

PAA Cote d'Ivoire Port activities A+ Stable A1- Stable 30/06/2017

Seed and palm oil PALMCI Cote d'Ivoire A- Stable A1- Stable 30/07/2017 products

Oil Products PETRO IVOIRE Cote d'Ivoire A Stable A3 Stable 30/06/2017 Distribution

PASP Cote d'Ivoire Public port operations A Stable A2 Stable 30/05/2017

SHELTER AFRIQUE Kenya Banking A Stable A1 Stable 30/06/2017

Rating SIMAT Cote d'Ivoire Handling and Transit Confidential expired

Rating Société Ivoirienne de Raffinage (SIR) Cote d'Ivoire Crude oil refining Confidential expired

SODECI Cote d'Ivoire Water distribution AA- Stable A1- Stable 30/09/2017

Rating Ville de Dakar Sénégal Local community BBB+ Stable A3 Positive expired

CROWN SIEM CI Cote d'Ivoire Metal packaging BBB+ Stable A3 Stable 31/07/2017

Construction and Rating SICOGI Cote d'Ivoire BBB Stable B Stable housing management expired

NESTLE CI Cote d'Ivoire industry A- Stable A1- Stable 31/10/2017

GuarantCo United Kingdom Institutional Garranty AAA Stable A1+ Stable 30/06/2017

Commune du Plateau Côte d'Ivoire Local community BBB- Stable A2 Stable 31/10/2017

CAMTEL Cameroun Telecommunications BBB Stable A3 Stable 31/07/2016 CREDIT RISK MANAGEMENT BEYOND NUMBERS

Credit Ratings (2/3)

Long term Short term Rating Company name Country Sector/ Activity Last Rating Perspective Last Rating Perspective expiration date Rating AVENI – RE Cote d’Ivoire Reinsurance A- Stable A2 Stable expired Rating Emission de la ville de Dakar Sénégal Financial instrument A Stable A1 Stable expired

District d'Abidjan Cote d’Ivoire Local community BBB- Stable B Positive 30/11/2017

Financing of the Rating Fonds d'Entretien Routier (FER) Cote d’Ivoire maintenance of road A- Positive A2 Stable expired infrastructure

Bank Of Africa – Benin Banking sector A+ Stable A1 Stable 31/05/2018

Bank Of Africa – Burkina Faso Banking sector A Stable A1 Stable 31/05/2018

Bank Of Africa – Niger Banking sector A- Stable A2 Stable 31/05/2018

Bank Of Africa – Sénégal Banking sector A- Stable A2 Positive 31/05/2018

Bank Of Africa – Côte d’Ivoire Cote d’Ivoire Banking sector A Positive A2 Stable 30/05/2018

Koffi & Diabaté Développement Cote d’Ivoire Construction BBB+ Stable A3 Stable 30/10/2017

Bank Of Africa – Mali Mali Banking sector A- Stable A2 Stable 31/05/2018

Caisse Régionale de Refinancement UEMOA Financial institution AA Stable A1+ Stable 30/06/2017 Hypothécaire Distribution of hardware products. industrial BERNABE Cote d’Ivoire equipment. metal A+ Stable A1- Positive 31/07/2017 products and construction materials

Air Côte d’Ivoire Cote d’Ivoire Airline company BBB+ Stable A3 Stable 30/08/2017

Alios Finance Cote d’Ivoire Financing by leasing BBB+ Stable A1 Stable 31/07/2017

State of Cote d'Ivoire - Local currency Côte d'Ivoire Sovereign debt A- Stable A2 Stable 30/06/2017 rating

Société Ivoirienne de Banque Côte d’Ivoire Banking sector A+ Stable A1 Stable 28/02/2018

Rating VIP NET Cote d’Ivoire Telecommunications Confidential expired

ANSUT Cote d’Ivoire Telecommunications Confidential 31/10/2017

Seed and palm oil DEKEL OIL Cote d’Ivoire Confidential 31/10/2017 products

FICOGES Cote d’Ivoire Audit Confidential 31/10/2016

UIREVI Cote d’Ivoire Export agriculture Confidential 31/07/2016

NSIA Banque Côte d’Ivoire Banking sector Confidential 30/04/2018

Radiant Insurance Company Rwanda Insurance Confidential 31/07/2017 CREDIT RISK MANAGEMENT BEYOND NUMBERS

Credit Ratings(3/3)

Long term Short term Rating Company name Country Sector/ Activity Last Rating Perspective Last Rating Perspective expiration date

NSIA Assurance Gabon Gabon Insurance Confidential 31/07/2017

NSIA Assurance VIE Côte d'Ivoire Cote d’Ivoire Insurance Confidential 31/07/2017

NSIA Assurance Cote d'Ivoire Cote d’Ivoire Insurance Confidential 30/06/2017

NSIA Assurance Guinée Bissau Guinea-Bissau Insurance Confidential 31/07/2017

NSIA Assurance Senegal Senegal Insurance Confidential 30/06/2017

NSIA Assurance Vie Senegal Senegal Insurance Confidential 31/07/2017

Société Equatoriale des Mines Gabon Mining operations Confidential 31/12/2017

Monitoring of the energy sector and CI Energies Cote d’Ivoire Confidential 31/12/2017 electrical infrastructure works

Tropical Distribution Cote d’Ivoire Distribution In development

Tropical Packaging Cote d’Ivoire Metal industry In development

Corn and rice Côte d’Ivoire Céréales Cote d’Ivoire processing / Bond In development issue

NSIA Assurance Togo Insurance In development

NSIA Assurance Vie Togo Togo Insurance In development

NSIA Assurance Benin Benin Insurance In development

NSIA Assurance Vie Benin Benin Insurance In development

Ecobank Cote d’Ivoire Cote d’Ivoire Banking sector In development CREDIT RISK MANAGEMENT BEYOND NUMBERS

Bond Market Corporate Bonds

Quantity Reference price Previous price Coupon Maturity

BOA BURKINA F. 6.25% 2012-2017 10 000 10 000 587.5 11-oct BOA - CI 6.25% 2012-2017 10 000 10 000 612.5 11-oct BOA NIGER 6.25% 2012-2017 9 250 9 250 587.5 11-oct BOA SENEGAL 6.50% 2012-2017 10 000 10 000 611 11-oct ORAGROUP 6.75% 2013-2019 21 10000 10000 337.5 04 june/ 04 dec SHELTER AFRIQUE 6.6% 2014-2021 8000 8000 327.29 28 feb / 28 aug SIFCA 6.90% 2013-2021 292 10000 10000 676.2 08-aug

Regional Entities Bonds

Quantity Reference price Previous price Coupon Maturity

BHB 6.25% 2012-2017 10 000 10 000 587.5 11-oct BIDC 6.75 % 2010-2017 10000 10000 336.58 04 apr / 04 oct BIDC-EBID 6.50% 2014-2021 90 10000 10000 325 28 apr / 28 sep BOAD 5.95% 2012-2019 10 000 10 000 595 06-mar BOAD 5.95% 2014-2021 10 000 10 000 260.82 26-dec CRRH-UEMOA 6.10% 2012-2022 10 000 10 000 305 13 feb / 13 aug CRRH-UEMOA 6.10% 2012-2024 10 000 10 000 305 17 jan / 17 jul CRRH-UEMOA 6% 2013-2023 10 000 10 000 300 26 apr / 26 oct CRRH-UEMOA 6% 2014-2024 9 999 9 999 300 30 june / 30 dec CRRH-UEMOA 6% 2015-2025 10 000 10 000 290.9 04 jan / 04 jul

Government Bonds

Cours de Quantité Cours précédent Coupon Maturity référence ETAT MALI 6.20% 2016-2023 467 10000 10000 620 23-may ETAT SENEGAL 6.5% 2014-2021 5999 5999 325 27 may / 27 nov ETAT SENEGAL 6.70% 2012-2019 10000 10000 670 14-dec ETAT SENEGAL 6.50% 2013-2023 4 9000 9000 325 29 jan / 29 jul ETAT SENEGAL 6.30% 2015-2025 10000 10000 313.28 25 may / 25 nov TPBF 6.50% 2013-2020 245 10000 9900 325 29 may / 29 nov TPCI 7% 2010-2017 10400 10400 700 01-oct TPCI 6.50% 2012-2017 10000 10000 650 19-sept TPCI 6.30% 2013-2018 10000 10000 315 03 june / 03 dec TPCI 6.55% 2014-2022 9998 9998 655 20-may TPCI 5.85% 2014-2021 500 10000 10000 292.5 19 june / 19 dec TPCI 3% 2014-2024 10000 9800 150 19 june / 19 dec. TPCI 5.99% 2015-2025 10000 10000 599 14-may TPCI 5.85% 2015-2022 28 10000 10000 599 05 apr / 05 oct TPCI 6% 2016-2028 3870 10000 10000 600 08-apr TPCI 5.90% 2016-2026 19 10000 10000 590 15 - june TPCI 5.90% 2016-2026 10000 10000 590 17-nov SUKUK ETAT DE COTE D'IVOIRE 5.75% 2015-2020 10000 10000 292.292 28 june / 28 dec SUKUK ETAT DE COTE D'IVOIRE 5.75% 2016-2023 10000 10000 289.097 7 sept / 7 march SUKUK ETAT DU SENEGAL 6.25% 2014-2018 10000 10000 321.181 18 jul / 18 jan SUKUK ETAT DU SENEGAL 6% 2016-2026 105 10000 9950 306.667 26 jul / 26 jan SUKUK ETAT DU TOGO 6.5% 2016-2026 10000 10000 0 17 aug / 17 feb CREDIT RISK MANAGEMENT BEYOND NUMBERS

Contacts Bloomfield Investment Corporation

Bloomfield Investment Corporation 06 BP 1888 Abidjan 06 Tel: (225) 20 215 747 / (225) 20 215 749 Fax: (225) 20 215 751

Djeneba DIALLO Directeur Analyses Economiques et Boursières [email protected]