presentacion oddo: funds experience 2016

Exclusively dedicated to professional clients (MIFID) www.oddomeriten.eu

ODDO PROACTIF EUROPE

September 2016

Flexible European Equity Fund

ODDO MERITEN ASSET MANAGEMENT • ODDO PROACTIF EUROPE

Disclaimer:

Oddo Meriten AM is the asset management division of the Oddo Group. It is the common brand of two legally separate asset management companies: Oddo MeritenAM SA (France) and Oddo Meriten AM GmbH (Germany).

This document, for market communication, has been drawn up by Oddo Meriten Asset Management SA (ODDO MERITEN ASSET MANAGEMENT SA) and isexclusively dedicated to professional clients (MIFID). It may not be circulated among the public.

The fund is regulated by the Autorité des Marchés Financiers (AMF).The investor is informed that the fund presents a risk of capital loss, but also manyrisks linked to the financial instruments/strategies in th e portfolio. In case of subscription, investors must consul t the Key Investor Information Document(KIID) and the fund’s prospectus in order to acquaint themse lves with the detailed nature of any risks incurred. The value of the investment may vary bothupwards and downwards and may not be returned in full. The investment must be made in accordance with investors’ investment objectives, their investment horizonand their capacity to deal with the risk arising from the transaction. ODDO MERITEN ASSET MANAGEMENT SA cannot be held responsible for any direct or indirectdamages resulting from the use of this document or the information contained in it. This information is provided for indicative purposes and may be modified at anymoment without prior notice.

Investors are reminded that past performance is not a reliable indication of future returns and is not constant over time. Performance are presented net of fees exceptthe potential subscription fee charged by the distributor and the local taxes. Any opinions presented in this document result from our market forecasts on the publicationdate. They are subject to change according to market conditions and ODDO MERITEN ASSET MANAGEMENT SA shall not in any case be held contractually liable forthem. The net asset values presented in this document are provided for indicative purposes only. Only the net asset value marked on the transaction statement and thesecurities account statement is authoritative. Subscriptions and redemptions of mutual funds are processed at an unknown asset value.

The Key Investor Information Document (DEU, ESP, FR, GB, ITL, POR, SWD) and the prospectus (FR, GB) are available free of charge from ODDO MERITENASSET MANAGEMENT SA or at www.oddo.com or at authorized distributors. The annual and interim reports are available free of charge from ODDO MERITENASSET MANAGEMENT SA or on its internet site www.oddomeriten.eu

Risks:The fund is exposed to the following risks : risk o f capital loss, equity risk, risk associated with h olding small and medium capitalisations, interest r ate risk, credit risk, currency risk, risk associated with di scretionary management, counterparty risk and poten tially exposed to emerging market.

Countries in which the fund is authorised for distribution t o professional clients

2

ODDO MERITEN ASSET MANAGEMENT • ODDO PROACTIF EUROPE3

Shareholding structure

30 %EMPLOYEES

Oddo & CieA family owned financial company whose history dates back to 1849

Sources: Oddo Meriten AM S.A. Data as of 31/12/2015

Camille Gautier, broker in Marseille

1849

Creation of Oddo Asset Management

1978

Opening of international offices: Milan, Frankfurt, Singapore, Geneva

2011-14

Philippe Oddo, Managing partner

1987 Bernard Oddo, great-grandson of

Camille Gautier, broker

1971

Acquisition of Seydler Bank,Meriten Investment Managementand BHF Bank

Creation of a Franco German dynamic

Acquisition ofCyril Finance

2005

Acquisition ofOrsay Asset Management

2010

2 500Employees

€426m Net banking income

€740m Shareholders‘ equity

2016

60 %ODDO FAMILY7 %

ALLIANZBOUSSARD &

GAVAUDANTHÉTYS

3 %OTHERS

Key figures


2015: the rise of a unique Franco-German asset management brand

Sources: Oddo Meriten AM S.A. & Oddo Meriten AM GmbH. Data as of 30/06/2016

Oddo Asset Management1978

SIN

CE

Meriten Investment Management1969

SIN

CE

Unique Franco-German identity, global reach

� Two key investment centers in Paris and Düsseldorf

� Global distribution reach: distribution offices in Milan, Geneva, Frankfurt and Singapore

One of the largest independent asset manager in the Eurozone

� Committed to client proximity

� Independent, long-term oriented

� Critical asset under management size reached for fixed income, equities and asset allocation

GERMANY55%

FRANCE37%

OTHERS8%

SIN

CE

2015 Oddo Meriten Asset Management

Breakdown of assets by country

€41bnAssets under management

276Employees¥

$€

£


Our fundamental equity strategies

CONVICTION – ACTIVE SHARE – 25 YEARS OF TRACK RECORD

Sources: Oddo Meriten AM S.A. & Oddo Meriten AM GmbH. Data as of 30/06/2016

� More than 25 years of track record

� Stock picking expert

� Located in the heart of Europe and well connected to companies across the continent

Our expertise

Our team

� 23 dedicated investment professionals with an average of 15 years investment experience

Our process

� In depth fundamental analysis

� Conviction based selection and implementation

� Rigorous investment, risk and control processes

Our results

� High active share

� Long track records with strong performance and superior risk-return

FUNDAMENTAL EQUITIES – € 8.1bn 2.3 5.8

SMALL CAP€ 0.8bn

0.5 0.3

� Eurozone - traditional� Europe - traditional� Europe - opportunity

THEMATIC€ 0.5bn

0.1 0.4

� Eurozone real estate

� European banks

MID CAP€ 4.3bn

1.2 3.1

� France

� Eurozone

� Europe

� US

LARGE CAP€ 1.6bn

0.5 1.1

� Eurozone

� Europe

� Global

FLEXIBLE€ 0.9bn

- 0.9

� Europe

AUM (€bn) AUM (€bn)Dedicated products Mutual funds


41 2 3 5 6 7

41 2 3 5 6 7

Risk / return scale*

Risk / return scale*

�� Morningstar™

�� Morningstar™

ODDO PROACTIF EUROPE

� ODDO PROACTIF EUROPE CI-EUR

� ODDO PROACTIF EUROPE CR-EUR

Morningstar™ rating as of 30/09/2016Morningstar™ Category : Euro Flexible Equity*Synthetic indicator of risk and performance : runn ing from 1 to 7, where one is the lowest level of r isk and seven the highest. This indicator shall be revised when changes occur in the fund’s risk and r eward profile.


Contents

1.

2.

3.

4.

MANAGEMENT TEAM

OUR INVESTMENT PHILOSOPHY

MANAGEMENT PROCESS

INVESTMENT CASES


1.MANAGEMENT TEAM


Experience and complementary

Management team Investment philosophy Management process Investment cases

Pascal Riégis

� Since 2016 Co-Head of Fundamental Equities

� 2003-2016 Head of European Small & Mid Cap Equities

� 1995-2003 Head of Equity Research, Oddo Securities� 1990-1995 Equity Research, CIC Group

� 1987-1990 Financial Analyst, BNP Paribas

Graduate in Economics and École Supérieure de Commerce de Pau, Member of SFAF (French Society of Financial Analysts)

Emmanuel Chapuis, CFA

� Since 2016 Co-Head of Fundamental Equities

� 2005-2016 Head of Large Cap Equities & Thematics

� 1999-2005 Equity Portfolio Manager, CM-CIC AM� 1998-1999 Financial Analyst, Goldman Sachs/Archon Group

MBA from Texas Christian University (Dallas/Fort Worth)CFA and Member of SFAF (French Society of Financial Analysts)

INVESTMENT EXPERIENCE

28 YEARS

17 YEARS


2.OUR INVESTMENT PHILOSOPHY


A pure fund invested in equities or money market

products

� A flexible fund, invested in European equities or money market products (0 to 100 %)

� An allocation aimed at optimising risk / reward, buffering the risk of capital loss

Flexible allocation based on “bottom-up” principles

� Bottom up portfolio construction

� Valuation scenarios, best and worst possible cases

� Valuation levels: essential criteria of the level of strategic exposure to equities

Stock selection within the equity pocket: the best

ideas of the management

� Stock picking, the basis of our expertise

� Selection of companies structured to create value regardless of the cycle

� European businesses with international influence

Investment philosophy

The fund is principally exposed to the following risks: risk of capital loss, equity risk, risks linked to discretionary management.

All the risks are detailed at the end of the presentation.

RISKS



3.MANAGEMENT PROCESS


Companies with international reach

� Businesses which seek out growth where it can be found and develop worldwide, without remaining dependent on the cycles of any one continent

Tried and tested management

� Professional and accessible management

Growth prospects intact

� Companies built on a strong and clear concept, offering steady organic development prospects complemented by acquisitions

Our approach to stock selection

COMPANIES ABLE TO FINANCE THEIR GROWTH AND CREATE V ALUE OVER THE LONG TERM, ACCORDING TO OUR ANALYSES

Value creating companies over time

� Businesses able to preserve steady profitability which are self-financing even in recessionary periods

> Return on Invested Capital raised over the complete duration of an economic cycle

> Free Cash Flow capacity for financing growth



Value creatorsThe right fuel to finance growth

Past performance is not a reliable indication of fu ture returns and is not constant over time.

The examples of LafargeHolcim, Saint-Gobain and Sika are not investment recommendations | Sources: Oddo Meriten AM SA, Datastream. Data as of 30/09/2016

A construction industry example: Sika vs. LafargeHolcim & Saint-Gobain (Total Return)


0

1000

2000

3000

4000

5000

6000

7000

Silka + 6 548%

Lafarge + 910 %

Saint Gobain +679 %

Stoxx Europe 600+ 600 %


Value creatorsThe right fuel to finance growth


The examples of LafargeHolcim, Saint-Gobain and Sika are not investment recommendations | Sources: Oddo Meriten AM SA, Datastream. Data as of 30/09/2016

An example of non-cyclical consumption: Nestlé and L’Oréal vs Carrefour and Ahold (Total Return)


0

500

1000

1500

2000

2500

3000

3500

4000Loréal + 3802%

Nestlé + 3176 %

Stoxx Europe 600 +600%

Carrefour + 591 %

Ahold + 408 %


HEDGING

Flexible and active allocationOccasional use of index contracts to hedge the positions

Fundamental strategic allocation Cash vs. Equities

0-100%

Equity investment rate defined in a discretionary manner accordingto investment opportunities: European companies with a globaldimension, creators of value over time, with attractive prices

MONEY MARKET PRODUCTSEQUITIES

1st

Tactical allocation: hedging of the equity pocket

Short term tactical allocation, purely discretionary according tomarket sentiment / momentum and the flow of information

2nd



64%62%

53%

60% 61%

55%

46%

56%58% 58%

53%

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

20%

30%

40%

50%

60%

70%

80%

90%

Net Equity Exposure of Oddo ProActif Europe (left hand scale) Euro Stoxx 50 (NR) (for info., right hand scale) Average portfolio net exposure over the year

Flexible allocation – Evolution of the exposure to the equity market

Past performances are not a guide to future perform ances and are not constant over time.

The proportion not invested in equities is invested in monetary funds | Source: Oddo Meriten AM SA. Data as of 30/09/2016

Evolution of the portfolio’ s net exposure to the equity market (in %) since January 2006


Min exposure08/08/2011

23.5%

Max exposure31/01/2007

87.0%


Flexible allocation – Evolution of the exposure to the equity market Focus on 2015 & 2016

Past performances are not a guide to future perform ances and are not constant over time.

The proportion not invested in equities is invested in monetary funds Source : Oddo Meriten AM SA. Data as of 30/09/2016

Evolution of the portfolio’ s net exposure to the equity market (in %) since 2015


4 500

5 000

5 500

6 000

6 500

7 000

7 500

30%

40%

50%

60%

70%

80%

90%

Net equity exposure of Oddo ProActif Europe (left hand scale) Euro Stoxx 50 (NR) (for info., right hand scale)


4.INVESTMENT CASES


Other convictions (1/2)

The above examples do not constitute an investment recommendation


� Swiss pharmaceutical company specialised in medicines (78% of revenue) and diagnosis (22%). A global leader in oncology (67% of its pharmaceutical portfolio), biological treatments (80% of its portfolio) and in vitro diagnosis.

� Significant competitive advantage in oncology through its combined pharmaceutical and diagnosis offering (selection and monitoring of eligible patients).

� A promising pipeline of new products which means the company is well positioned to deal with the rise in biosimilars in the US in some of its main franchises (blood cancer, breast cancer).

� Its best-in-class R&D productivity gives options for its undervalued product pipeline (hemophilia, multiple sclerosis, asthma, ophthalmology) and reinforces its growing credibility in immuno oncology (lung and bladder cancer).

� Global leader in business software.� A promising new cycle of products across business mobility, cloud computing and in-memory database with the launch of the S/4 HANA

continuation.� 50% of recurrent revenue comes from maintenance, the gross margin of which exceeds 90%, with organic growth of 5/6%.� The HANA in-memory database represents a clear competitive edge that could redefine the database market (processing of massive volumes

of data with real time results).� Rapid progress made in migrating to the cloud with the necessary investment granted (acquisition of Concur, Ariba, SuccesFactors),

strengthening the group's growth profile.

� World-leading food company with a strong competitive edge in four of the sector's most attractive business lines: fresh dairy products, bottled water, early-life nutrition, medical nutrition. A portfolio of strong global (Danone, Dannon, Evian, etc.) and regional brands. 50% of revenue is achieved in the emerging countries.

� A portfolio of activities that should generate higher organic sales growth than the sector average over the medium to long term.� New management aiming to streamline operations (optimisation of costs and the portfolio) and to focus on achieving a balance between growth

(+5% per annum) and profitability (+200bp improvement in the margin) by 2020. � The change in status should gradually reduce the discount on the share (2pts on PE vs. peers)


Other convictions (2/2)

The above examples do not constitute an investment recommendation


� Leader in the high-end segment which continues to successfully penetrate the market. A strong corporate culture focusing on innovation and performance. A leader in automotive technology, particularly in the area of CO2 / fuel consumption, with considerable expertise in electric and hybrid vehicles.

� A well-balanced break down of profits with an Europe market still representing a considerable proportion (around 45% of profits) and a now limited contribution of China (25% of profits).

� The product cycle is set to improve in 2017 (reduction in the average age of products). Consolidation of the number of platforms from 5 to 2 by 2018 enabling significant cost savings that could offset headwinds affecting the mix and content.

� A defensive cash profile. Net cash representing more than 30% of the market capitalisation. Ability to generate between 50% and 100% of its enterprise value in free cash flow over the next 5 years.

� Founded in 1668, the world's oldest pharmaceutical and chemical company, operating in 3 business lines: healthcare (45% of 2016 revenue), life science (38%) and performance materials (17%).

� A significant ramp-up in life science segments with the acquisition of Sigma Aldrich in 2015, which benefits from a much more visible and stable growth profile (and thus higher valuation multiples). Focus by the management on integrating Sigma and harnessing cost synergies of €260m by 2018, representing 10% of the Group's EBIT.

� Performance materials: capacity to maintain an EBITDA margin of 40% and to grow revenue through continued efforts in innovation (new technology LCD, OLED).

� Healthcare: new management in place with a big challenge in optimizing R&D. Its pipeline options are not highly promoted by the market even though the group holds several assets in the area of oncology and immunotherapy in PIII (implied sales peak of €500m by 2025 vs. potential of €2bn according to the management).

� German automotive original equipment manufacturer (Automotive division accounting for 60% of revenues) and tire maker (40%). � The Automotive division is ideally placed to benefit from major industry trends: hybridation/electrification of vehicles (48V technology), self-drive

cars (ADAS components), infotainment, active and passive security, reduction of emissions, etc. Significant efforts in R&D in recent years (8/9% of revenue), enabling it to win new market share in several segments, while maintaining a very high level of value added. An order book of €30bn, underpinning sales CAGR of 5% between now and 2020, while generating an improvement in margins

� Tires: best-in-class margin (20%+) thanks to first-rate industrial productivity, a high technological content and a product mix that perfectly meets market trends (strong growth in tires > 16’’). ROCE of 30%+ giving it unique capacity to generate FCF for the sector.


5.PERFORMANCE


Oddo ProActif EuropeValue creation over the long term


*Benchmark: 50 % Euro Stoxx 50 NR + 50 % Eonia capitalisé since 02/01/2013, previously 50 % Eonia capitalisé + 50 % Euro Stoxx 50 ex dividendes

** Inception date CI-EUR: 10/09/2004 l Source : Oddo Meriten AM SA. Data as of 30/09/2016

Oddo ProActif Europe CI-EUR since inception date*

Benchmark* + 29.4%

Oddo ProActif Europe+ 106.9%

EuroStoxx 50 NR + 56.6%

75

100

125

150

175

200

225

Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16

Oddo ProActif Europe CI-EUR 50% EuroStoxx 50 NR + 50% EONIA

100% EuroStoxx 50 (NR) (for info.) JP Morgan Global Govt Bond index (LC), (for info.)

Real Estate Index Paris 7e, (for info.)



*Benchmark: 50 % Euro Stoxx 50 NR + 50 % Eonia capitalisé since 02/01/2013, previously 50 % Eonia capitalisé + 50 % Euro Stoxx 50 ex dividendes

Source : Oddo Meriten AM SA. Data as of 30/09/2016

0.0%

13.7%

10.2%

3.6%

9.7%

-7.6%

7.4%10.7%

2.4%3.8%

-14.1%

18.1%

21.5%

4.0%6.4%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2011 2012 2013 2014 2015

Oddo ProActif Europe CR-EURBenchmark*Euro Stoxx 50 (NR) (for info.)

Annual performance (rolling 12 months)

From 30/09/11 28/09/12 30/09/13 30/09/14 30/09/15

To 28/09/12 30/09/13 30/09/14 30/09/15 30/09/16

Fund 16.2% 12.1% 4.4% 6.1% 5.5%

Benchmark* 7.2% 10.4% 7.4% 0.0% 0.4%

Euro Stoxx 50 (NR) for info 17.1% 21.3% 14.6% -1.4% -0.3%

Calendar performance since 5 years

Oddo ProActif Europe – CI-EURPerformance (1/2)


%

Annualised performance Cumulative performance Annualised volatility

3 years 5 yearsSince

inception**1 year 3 years 5 years

Since inception**

1 year

3 years

5 years

Sinceinception**

Oddo ProActifEurope CR-EUR 5.3 8.8 6.2 5.5 16.9 52.2 106.9 8.9 8.8 9.1 11.4

Benchmark* 2.5 5.0 2.2 0.4 7.8 27.6 29.4 10.6 9.4 9.7 10.9

Euro Stoxx 50 NR(for info.) 4.0 9.9 3.8 -0.3 12.6 60.0 56.6 21.2 18.8 19.4 21.7

Performance analysis

Cumulative performance since Inception*

Oddo ProActif Europe – CI-EURPerformance (2/2)


* Benchmark: 50 % Euro Stoxx 50 NR + 50 % Eonia capitalisé since 02/01/2013, previously 50 % Eonia capitalisé + 50 % Euro Stoxx 50 ex dividendes

** Inception date CI-EUR: 10/09/2004 l Source : Oddo Meriten AM SA. Data as of 30/09/2016

+106.9%

+29.4%

+56.6%

0

50

100

150

200

250 Oddo Proactif Europe CI-EUR

Benchmark*

Stoxx 50 (NR)


Oddo ProActif EuropeShare classes characteristics


Singapore

Milan

Paris

Frankfurt

Geneva

Dusseldorf

Local representation officesInvestment centers

Locations



Oddo Meriten Asset Management SA (France)Portfolio Management Company approved by the Autorité des Marchés Financiers under GP 99011.Société Anonyme with capital of 7 500 000€. Trade Register (RCS) 340 902 857 Paris.12 boulevard de la Madeleine - 75440 Paris Cedex 09 France - Tél. : 33 (0)1 44 51 85 00.www.oddomeriten.eu

presentacion oddo: funds experience 2016

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