France. European Focus List

Transcript

1 Austria Belgium Czech Republic Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Norway Portugal Spain European Focus List Sweden Switzerland United Kingdom

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4 O'NEIL EQUITY RESEARCH METHODOLOGY 70,000 Equities in Coverage Universe 70 Countries 40 Research Analysts 10 Ideas On Average Per Week General Market Analysis Quantitative Analysis Profile Analysis Fundamental Analysis Technical Analysis Committee of O Neil Research Research Analysts examine a Research Analysts focus on A company s historical stock Analysts classify 70 major variety of proprietary proprietary ratings and rankings growth catalysts that provide a price is evaluated against market indices into 4 states quantitative Ratings and are compared against a company a competitive edge using a proprietary approach Rankings to monitor existing proprietary Model Book and superior product/service. in a proprietary Model Book based on quantitative, technical, and qualitative observation: and potential recommendations. +1,000 Great Winning Stocks since Financial Statement Analysis, Industry and Company reports, News Releases, and Conference database. Buy/Sell entry points are determined based on closeness Confirmed Uptrend Calls are utilized to gauge growth catalysts. Uptrend Under Pressure Downtrend Rally Attempt in Downtrend Refer to the end of the report for important disclosures -2-

5 TABLE OF CONTENTS Weekly Updates and Market Information Performance Summary... 4 Indices Summary... 5 Market Summaries... 6 European Weekly Analysis Weekly Updates... 9 Page Indexes Leaders by Company Name Index Leaders by Sector Index Leaders by Country Index Leaders by Market Cap (USD) Index Page Performance Summaries Focus List Allocations Top Performers This Week Top Performers Since Added Page International Mark ups and Weekly Charts (Organized By Sector) Consumer Cyclical Technology Financial Health Care Retail Capital Equipment Consumer Staple Energy Utility Page Cumulative Positions Cumulative Positions Page -3-

6 PERFORMANCE SUMMARY EURO FOCUS LIST VS. STOXX 600 As of 02/01/ % % % % % % % % 93.13% 50.00% 0.00% 50.00% EURO FOCUS LIST YTD Performance +1.37% Ishares Stoxx Europe 600 ETF Performance +1.01% %

7 EUROPEAN MARKETS INDICES SUMMARY European Markets Condition 2/2/ /26/ /19/ /12/ % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CONFIRMED UPTREND UPTREND UNDER PRESSURE DOWNTREND RALLY ATTEMPT Country % Since Follow Through Weeks Since Follow Through Distribution Days Country % Off High Weeks Since Follow Through Distribution Days Country % Off High Weeks Since Downtrend Country % Off Low Weeks Since Downtrend Czech Republic 25% 68 2 Greece 15% 7 3 Portugal 6% 19 3 Italy 6% 3 3 Netherlands 2% 17 3 Austria 1% 4 3 Belgium 0% 4 2 Norway 1% 4 3 France 1% 19 7 Ireland 3% 13 6 Switzerland 4% 59 8 Germany 4% 18 7 United Kingdom 1% 0 Denmark 6% 8 Luxembourg 9% 11 Finland 7% 9 Spain 3% 9 Sweden 0% 9-5-

8 EUROPEAN MARKETS SUMMARIES Europe (France, Germany, and the U.K.) KEY POINTS 1. This week, as of Thursday, the Stoxx 600 was down 1.77% on a weekly basis. With six distribution days, the index remains in a Confirmed Uptrend as of Thursday. It continued to run weak throughout the week and ended up closing at its 50-DMA on Thursday. This week, we moved the U.K. and Switzerland to Under Pressure. With this change, all four of the major European indices, France, Germany, the U.K., and Switzerland, are Under Pressure. 2. U.K. housing prices surged 3.2% y/y in January, reaching their highest level since March 2017 and accelerating from 2.6% y/y growth in December It also exceeded consensus expectations of 2.5% growth. Prices are further projected to grow 1% in In January, Germany s Manufacturing PMI stood at 61.1, slightly down from preliminary estimates of The Eurozone s Manufacturing PMI came in at 59.6 in January, down from December 2017 s record high of 60.6 and in line with the flash estimate. The Netherlands, Italy, and Greece recorded strong PMI figures. 5. According to the Society of Motor Manufacturers and Traders, U.K. car manufacturing output plunged 3% y/y to 1.67M vehicles in 2017, owing to a 10% decline in domestic demand. Production fell for the first time since 2009 and investment was down by a third to 1.1B due to Brexit fears. 6. Economic growth in France accelerated to 0.6% q/q for Q4 2017, compared with 0.5% q/q in Q3 2017, per preliminary data released this week. Growth was mainly driven by exports and fixed capital formation, while household consumption slowed. 7. In Spain, GDP growth slowed to 0.7% q/q in Q4 2017, compared with 0.8% q/q in Q The preliminary data released this week was in line with consensus. Retail sales in Spain decelerated to 1.2% q/q in December 2017, compared with 1.9% y/y in November Consensus expected 2% y/y. Stocks of Interest ASML (ASML.NL; ASML:NA) $87.31B market cap ASML is a leading global manufacturer of chip-making equipment. Increasing adoption of extreme ultraviolet (EUV) systems by global chip manufacturers should drive the Company s growth. The Company is the leading player in the 6B global lithography market. Its EUV machines enable chip makers to manufacture smaller semiconductors (sub-10nm) while increasing device capacity and speed. In Q4 2017, ASML reported net bookings of 2.94B and a backlog of 6.7B, which includes 28 EUV systems (valued at 3B), showing strong revenue visibility. By the end of 2018, Samsung is expected to adopt EUV for its 7nm process. For Q1 2018, the Company guides for net sales of 2.2B, below consensus of 2.36B. Shares pulled back this week and are still actionable. Its A/D Rating improved in recent weeks, to A-. SEB (SEB.FR; SK:FP) $10.64B market cap SEB is a leading manufacturer of household equipment and cookware and is a global market leader in professional coffee machines with a 28% share, well ahead of its nearest competitor. SEB released 2017 provisional sales data, with annual sales of 6.485B, up 29.7% y/y, including 9.2% organic growth. Sales were 2% lower than consensus expectations, due to the negative impact of FX. Q4 sales increased 24% y/y to 2.026B (+8.4% organic growth), driven by healthy organic growth across all geographies. China stands out with a 10.4% y/y rise in annual sales (21% excluding FX). Given the difficult environment in the offline distribution industry, the U.S. came as a positive surprise in Q4 with LFL sales growth of 4%, accelerating from Q3 and driven by ecommerce. Management reiterated its 2017 outlook with ORFA growth of 30-35% (versus >30% previously). The Company will report 2017 fullyear results on March 1. Shares remain actionable, with an attractive A/D Rating of B. Important Dates February 5 Eurozone retail sales February 6 Germany factory orders February 7 Germany industrial productions, Portugal unemployment rate February 8 Bank of England interest rate decision February 9 U.K. manufacturing and industrial production, France industrial production -6-

9 EUROPEAN WEEKLY ANALYSIS After closing with a heavy loss on Friday (-1.38%), the Stoxx 600 was moved to an Uptrend Under Pressure. The index has accumulated six distribution days in the trailing 25 trading days, adding two from last week. /ƐŚĂƌĞƐ ũ ^ƚždždž Ϭ ĞͿ y^ y dz džđś ϬϬϬϯϱϳ &ŝŷăŷđğͳ d& de The ishares Dj Stoxx 600 crossed below its key support levels in just four trading days. The next support for the index at 37.40, a November low, is only 2% below Friday s close. The damage was severe across the board, with all sectors pointing south this week. DŬƚ ĂƉ Φϳ ϰ ^ŚĂƌĞƐ ϮϬϴD &ůžăƚ ϮϬϴD IURP 3LYRW LQ 'D\V W^ ϮϬ dž K, Ͳϰй >/E ϰϭ ϯ ϳϯ Ishares Dj Stoxx 600 "uptrend under pressure" ϯ ϲθ 6 distribution days ϯ ϯ ϲ ϲϯ ϳϱ ϭθ ϭϲ hz ͲϬ ϰ Ͳϭ Ϯ Ϭϯ ϯϳ ϭ ϯϳ ϲϯ ϯϳ ϳϳ ϯϳ ϳϰ ϯϳ ϲϰ ϯϳ ϰϭ ϯϳ ϯϳ Ϭϯ ϯϲ ϴϭ ϯϲ ϲθ Next support at DMA ϯϲ ϱϯ 21-DMA ϯϲ ϯϱ ϭ 200-DMA ϰϳ Ϭϭϲ :ĂŶ &Ğď DĂƌ Ɖƌ DĂLJ :ƵŶ :Ƶů Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ƵŐ ^ĞƉ KĐƚ EŽǀ ĞĐ ϮϬ :ĂŶ /ƐŚĂƌĞƐ ũ ^ƚždždž Ϭ ĞͿ y^ Ϳ ĂŝůLJ ĂƐ ŽĨ &ƌŝ ϬϮ &ĞďƌƵĂƌLJ ϮϬϭϴ -7-

10 EUROPEAN WEEKLY ANALYSIS Our Focus List performance has been hurt in this environment, and the number of ideas is likely to shrink significantly if weakness persists. We do not recommend building a position in this market, and maintaining light positions in names that show technical weakness reflected in a declining RS line, an A/D Rating turning negative, and a lack of support (key moving averages breached). -8-

11 WEEKLY UPDATES Deletions Page Symbol Name Date O'Neil Sector O'Neil Industry Group Reason UNITED KINGDOM 1 Stock 76 FIVE.GB X5 Retail Gp.Gdr Reg 's' 02/01/18 Retail Wholesale Food We are removing the stock from our Focus List due to technical weakness. It is breaking below its 40 WMA, which has consistently held as a level of support during the uptrend over the past year. We believe the stock may continue to lag here. Technical ratings have deteriorated: RS Rating of 50 and A/D Rating of C. Additions Page Symbol Name Date O'Neil Sector O'Neil Industry Group Reason This section intentionally left blank. -9-

12 LEADERS BY COMPANY NAME Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD A T 74 AMP.IT Amplifon ITALY MIL Retail Retail Specialty 3,879 6, ASML.NL Asml Holding NETHERLANDS AMS Technology Elec Semiconductor Equip 84, , BME.GB B&M European Val.Ret. (Di) UNITED KINGDOM LON Retail Retail Discount&Variety 5,849 21, BIM.FR Biomerieux FRANCE PAR Health Care Medical Products 10,496 16, AFR.ES Cie Automotive SPAIN MAD Consumer Cyclical Auto/Truck Original Eqp 4,326 4, COPX.DE Compugroup Medical (Xet) GERMANY XET Technology Comp Sftwr Spec Enterprs 3,247 4, EUF.FR Eurofins Scientific FRANCE PAR Health Care Medical Research Eqp/Svc 11,055 11, EVOG.SE Evolution Gaming Group SWEDEN OME Technology Computer Sftwr Gaming 2,705 9, BAER.CH Julius Baer Gruppe SWITZERLAND SWX Financial Banks Money Center 15,460 74, JE.GB Just Eat UNITED KINGDOM LON Technology Internet Content 7,791 26, KER.FR Kering FRANCE PAR Consumer Cyclical Apparel Clothing Mfg 62,270 95, KYGA.IE Kerry Group 'A' IRELAND DUB Consumer Staple Food Packaged 19,032 24, KOMN.CH Komax SWITZERLAND SWX Capital Equipment Machinery Gen Industrial 1,331 4, MTRO.GB Metro Bank (Wi) UNITED KINGDOM LON Financial Banks Money Center 4,549 5, MONC.IT Moncler ITALY MIL Consumer Cyclical Apparel Clothing Mfg 8,245 27, NEMX.DE Nemetschek (Xet) GERMANY XET Technology Computer Sftwr Design 3,682 3, NOFI.NO Nor Finans Holding NORWAY OSL Financial Banks Money Center 2,103 6, NOD.NO Nordic Semiconductor NORWAY OSL Technology Elec Semicondctor Fablss 974 1, POM.FR Plastic Omnium FRANCE PAR Consumer Cyclical Auto/Truck Original Eqp 7,498 8, REC.IT Recordati Indua.Chimica ITALY MIL Health Care Medical Diversified 9,177 14, RCO.FR Remy Cointreau FRANCE PAR Consumer Staple Beverages Alcoholic 6,585 12, RTO.GB Rentokil Initial UNITED KINGDOM LON Capital Equipment Comml Svcs Outsourcing 7,682 17, RUI.FR Rubis FRANCE PAR Energy Oil&Gas Refining/Mktg 6,876 9, SEB.FR Seb FRANCE PAR Consumer Cyclical Hsehold Appliances/Wares 10,602 11, SIX2X.DE Sixt (Xet) GERMANY XET Consumer Cyclical Leisure Services 4,700 4, SMS.GB Smart Metering Systems UNITED KINGDOM LON Utility Utility Gas Distribution 1,169 2, SOPH.GB Sophos Group UNITED KINGDOM LON Technology Computer Sftwr Security 4,204 17, STMX.DE Stabilus (Xet) GERMANY XET Consumer Cyclical Auto/Truck Original Eqp 2,338 3, STMN.CH Straumann Hldg. SWITZERLAND SWX Health Care Medical Products 11,603 29, SDRY.GB Superdry Plc UNITED KINGDOM LON Retail Retail Apparel/Shoes/Acc 1,977 4, TGYM.IT Technogym ITALY MIL Consumer Cyclical Leisure Products 2,206 4, ROFR.FR Teleperformance FRANCE PAR Capital Equipment Comml Svcs Outsourcing 8,451 31,

13 LEADERS BY COMPANY NAME Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD T Z 42 TEMN.CH Temenos Group SWITZERLAND SWX Technology Computer Sftwr Financial 10,042 57, WDIX.DE Wirecard (Xet) GERMANY XET Financial Finance CrdtCard/PmtPr 14,776 99, FIVE.GB X5 Retail Gp.Gdr Reg 's' UNITED KINGDOM LON Retail Wholesale Food 10,167 17,

14 LEADERS BY SECTOR* Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD CONSUMER CYCLICAL 8 Stocks 22 POM.FR Plastic Omnium FRANCE PAR Consumer Cyclical Auto/Truck Original Eqp 7,498 8, AFR.ES Cie Automotive SPAIN MAD Consumer Cyclical Auto/Truck Original Eqp 4,326 4, STMX.DE Stabilus (Xet) GERMANY XET Consumer Cyclical Auto/Truck Original Eqp 2,338 3, KER.FR Kering FRANCE PAR Consumer Cyclical Apparel Clothing Mfg 62,270 95, MONC.IT Moncler ITALY MIL Consumer Cyclical Apparel Clothing Mfg 8,245 27, SEB.FR Seb FRANCE PAR Consumer Cyclical Hsehold Appliances/Wares 10,602 11, TGYM.IT Technogym ITALY MIL Consumer Cyclical Leisure Products 2,206 4, SIX2X.DE Sixt (Xet) GERMANY XET Consumer Cyclical Leisure Services 4,700 4,320 TECHNOLOGY 8 Stocks 38 COPX.DE Compugroup Medical (Xet) GERMANY XET Technology Comp Sftwr Spec Enterprs 3,247 4, NEMX.DE Nemetschek (Xet) GERMANY XET Technology Computer Sftwr Design 3,682 3, TEMN.CH Temenos Group SWITZERLAND SWX Technology Computer Sftwr Financial 10,042 57, EVOG.SE Evolution Gaming Group SWEDEN OME Technology Computer Sftwr Gaming 2,705 9, SOPH.GB Sophos Group UNITED KINGDOM LON Technology Computer Sftwr Security 4,204 17, NOD.NO Nordic Semiconductor NORWAY OSL Technology Elec Semicondctor Fablss 974 1, ASML.NL Asml Holding NETHERLANDS AMS Technology Elec Semiconductor Equip 84, , JE.GB Just Eat UNITED KINGDOM LON Technology Internet Content 7,791 26,180 FINANCIAL 4 Stocks 54 BAER.CH Julius Baer Gruppe SWITZERLAND SWX Financial Banks Money Center 15,460 74, MTRO.GB Metro Bank (Wi) UNITED KINGDOM LON Financial Banks Money Center 4,549 5, NOFI.NO Nor Finans Holding NORWAY OSL Financial Banks Money Center 2,103 6, WDIX.DE Wirecard (Xet) GERMANY XET Financial Finance CrdtCard/PmtPr 14,776 99,934 HEALTH CARE 4 Stocks 62 STMN.CH Straumann Hldg. SWITZERLAND SWX Health Care Medical Products 11,603 29, BIM.FR Biomerieux FRANCE PAR Health Care Medical Products 10,496 16, REC.IT Recordati Indua.Chimica ITALY MIL Health Care Medical Diversified 9,177 14, EUF.FR Eurofins Scientific FRANCE PAR Health Care Medical Research Eqp/Svc 11,055 11,

15 LEADERS BY SECTOR* Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD RETAIL 4 Stocks 70 SDRY.GB Superdry Plc UNITED KINGDOM LON Retail Retail Apparel/Shoes/Acc 1,977 4, BME.GB B&M European Val.Ret. (Di) UNITED KINGDOM LON Retail Retail Discount&Variety 5,849 21, AMP.IT Amplifon ITALY MIL Retail Retail Specialty 3,879 6, FIVE.GB X5 Retail Gp.Gdr Reg 's' UNITED KINGDOM LON Retail Wholesale Food 10,167 17,207 CAPITAL EQUIPMENT 3 Stocks 78 ROFR.FR Teleperformance FRANCE PAR Capital Equipment Comml Svcs Outsourcing 8,451 31, RTO.GB Rentokil Initial UNITED KINGDOM LON Capital Equipment Comml Svcs Outsourcing 7,682 17, KOMN.CH Komax SWITZERLAND SWX Capital Equipment Machinery Gen Industrial 1,331 4,429 CONSUMER STAPLE 2 Stocks 84 RCO.FR Remy Cointreau FRANCE PAR Consumer Staple Beverages Alcoholic 6,585 12, KYGA.IE Kerry Group 'A' IRELAND DUB Consumer Staple Food Packaged 19,032 24,736 ENERGY 1 Stock 88 RUI.FR Rubis FRANCE PAR Energy Oil&Gas Refining/Mktg 6,876 9,484 UTILITY 1 Stock 90 SMS.GB Smart Metering Systems UNITED KINGDOM LON Utility Utility Gas Distribution 1,169 2,459 *Sorted by O'Neil Sector, O'Neil Industry Group, Market Capitalization -13-

16 LEADERS BY COUNTRY* Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD FRANCE 8 Stocks 28 KER.FR Kering FRANCE PAR Consumer Cyclical Apparel Clothing Mfg 62,270 95, EUF.FR Eurofins Scientific FRANCE PAR Health Care Medical Research Eqp/Svc 11,055 11, SEB.FR Seb FRANCE PAR Consumer Cyclical Hsehold Appliances/Wares 10,602 11, BIM.FR Biomerieux FRANCE PAR Health Care Medical Products 10,496 16, ROFR.FR Teleperformance FRANCE PAR Capital Equipment Comml Svcs Outsourcing 8,451 31, POM.FR Plastic Omnium FRANCE PAR Consumer Cyclical Auto/Truck Original Eqp 7,498 8, RUI.FR Rubis FRANCE PAR Energy Oil&Gas Refining/Mktg 6,876 9, RCO.FR Remy Cointreau FRANCE PAR Consumer Staple Beverages Alcoholic 6,585 12,972 UNITED KINGDOM 8 Stocks 76 FIVE.GB X5 Retail Gp.Gdr Reg 's' UNITED KINGDOM LON Retail Wholesale Food 10,167 17, JE.GB Just Eat UNITED KINGDOM LON Technology Internet Content 7,791 26, RTO.GB Rentokil Initial UNITED KINGDOM LON Capital Equipment Comml Svcs Outsourcing 7,682 17, BME.GB B&M European Val.Ret. (Di) UNITED KINGDOM LON Retail Retail Discount&Variety 5,849 21, MTRO.GB Metro Bank (Wi) UNITED KINGDOM LON Financial Banks Money Center 4,549 5, SOPH.GB Sophos Group UNITED KINGDOM LON Technology Computer Sftwr Security 4,204 17, SDRY.GB Superdry Plc UNITED KINGDOM LON Retail Retail Apparel/Shoes/Acc 1,977 4, SMS.GB Smart Metering Systems UNITED KINGDOM LON Utility Utility Gas Distribution 1,169 2,459 GERMANY 5 Stocks 60 WDIX.DE Wirecard (Xet) GERMANY XET Financial Finance CrdtCard/PmtPr 14,776 99, SIX2X.DE Sixt (Xet) GERMANY XET Consumer Cyclical Leisure Services 4,700 4, NEMX.DE Nemetschek (Xet) GERMANY XET Technology Computer Sftwr Design 3,682 3, COPX.DE Compugroup Medical (Xet) GERMANY XET Technology Comp Sftwr Spec Enterprs 3,247 4, STMX.DE Stabilus (Xet) GERMANY XET Consumer Cyclical Auto/Truck Original Eqp 2,338 3,162 ITALY 4 Stocks 66 REC.IT Recordati Indua.Chimica ITALY MIL Health Care Medical Diversified 9,177 14, MONC.IT Moncler ITALY MIL Consumer Cyclical Apparel Clothing Mfg 8,245 27, AMP.IT Amplifon ITALY MIL Retail Retail Specialty 3,879 6, TGYM.IT Technogym ITALY MIL Consumer Cyclical Leisure Products 2,206 4,

17 LEADERS BY COUNTRY* Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD SWITZERLAND 4 Stocks 54 BAER.CH Julius Baer Gruppe SWITZERLAND SWX Financial Banks Money Center 15,460 74, STMN.CH Straumann Hldg. SWITZERLAND SWX Health Care Medical Products 11,603 29, TEMN.CH Temenos Group SWITZERLAND SWX Technology Computer Sftwr Financial 10,042 57, KOMN.CH Komax SWITZERLAND SWX Capital Equipment Machinery Gen Industrial 1,331 4,429 NORWAY 2 Stocks 58 NOFI.NO Nor Finans Holding NORWAY OSL Financial Banks Money Center 2,103 6, NOD.NO Nordic Semiconductor NORWAY OSL Technology Elec Semicondctor Fablss 974 1,821 IRELAND 1 Stock 86 KYGA.IE Kerry Group 'A' IRELAND DUB Consumer Staple Food Packaged 19,032 24,736 NETHERLANDS 1 Stock 50 ASML.NL Asml Holding NETHERLANDS AMS Technology Elec Semiconductor Equip 84, ,746 SPAIN 1 Stock 24 AFR.ES Cie Automotive SPAIN MAD Consumer Cyclical Auto/Truck Original Eqp 4,326 4,159 SWEDEN 1 Stock 44 EVOG.SE Evolution Gaming Group SWEDEN OME Technology Computer Sftwr Gaming 2,705 9,078 *Sorted by Trading Country, Market Capitalization -15-

18 LEADERS BY MARKET CAPITALIZATION, (USD) Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD OVER 10 BILLION 11 Stocks 50 ASML.NL Asml Holding NETHERLANDS AMS Technology Elec Semiconductor Equip 84, , KER.FR Kering FRANCE PAR Consumer Cyclical Apparel Clothing Mfg 62,270 95, KYGA.IE Kerry Group 'A' IRELAND DUB Consumer Staple Food Packaged 19,032 24, BAER.CH Julius Baer Gruppe SWITZERLAND SWX Financial Banks Money Center 15,460 74, WDIX.DE Wirecard (Xet) GERMANY XET Financial Finance CrdtCard/PmtPr 14,776 99, STMN.CH Straumann Hldg. SWITZERLAND SWX Health Care Medical Products 11,603 29, EUF.FR Eurofins Scientific FRANCE PAR Health Care Medical Research Eqp/Svc 11,055 11, SEB.FR Seb FRANCE PAR Consumer Cyclical Hsehold Appliances/Wares 10,602 11, BIM.FR Biomerieux FRANCE PAR Health Care Medical Products 10,496 16, FIVE.GB X5 Retail Gp.Gdr Reg 's' UNITED KINGDOM LON Retail Wholesale Food 10,167 17, TEMN.CH Temenos Group SWITZERLAND SWX Technology Computer Sftwr Financial 10,042 57,731 1 BILLION TO 10 BILLION 23 Stocks 66 REC.IT Recordati Indua.Chimica ITALY MIL Health Care Medical Diversified 9,177 14, ROFR.FR Teleperformance FRANCE PAR Capital Equipment Comml Svcs Outsourcing 8,451 31, MONC.IT Moncler ITALY MIL Consumer Cyclical Apparel Clothing Mfg 8,245 27, JE.GB Just Eat UNITED KINGDOM LON Technology Internet Content 7,791 26, RTO.GB Rentokil Initial UNITED KINGDOM LON Capital Equipment Comml Svcs Outsourcing 7,682 17, POM.FR Plastic Omnium FRANCE PAR Consumer Cyclical Auto/Truck Original Eqp 7,498 8, RUI.FR Rubis FRANCE PAR Energy Oil&Gas Refining/Mktg 6,876 9, RCO.FR Remy Cointreau FRANCE PAR Consumer Staple Beverages Alcoholic 6,585 12, BME.GB B&M European Val.Ret. (Di) UNITED KINGDOM LON Retail Retail Discount&Variety 5,849 21, SIX2X.DE Sixt (Xet) GERMANY XET Consumer Cyclical Leisure Services 4,700 4, MTRO.GB Metro Bank (Wi) UNITED KINGDOM LON Financial Banks Money Center 4,549 5, AFR.ES Cie Automotive SPAIN MAD Consumer Cyclical Auto/Truck Original Eqp 4,326 4, SOPH.GB Sophos Group UNITED KINGDOM LON Technology Computer Sftwr Security 4,204 17, AMP.IT Amplifon ITALY MIL Retail Retail Specialty 3,879 6, NEMX.DE Nemetschek (Xet) GERMANY XET Technology Computer Sftwr Design 3,682 3, COPX.DE Compugroup Medical (Xet) GERMANY XET Technology Comp Sftwr Spec Enterprs 3,247 4, EVOG.SE Evolution Gaming Group SWEDEN OME Technology Computer Sftwr Gaming 2,705 9, STMX.DE Stabilus (Xet) GERMANY XET Consumer Cyclical Auto/Truck Original Eqp 2,338 3, TGYM.IT Technogym ITALY MIL Consumer Cyclical Leisure Products 2,206 4,

19 LEADERS BY MARKET CAPITALIZATION, (USD) Page Symbol Name Trading Country Exchange O'Neil Sector O'Neil Industry Group Mkt Val (Mil), USD Avg Dly $ Vol (000), USD 58 NOFI.NO Nor Finans Holding NORWAY OSL Financial Banks Money Center 2,103 6, SDRY.GB Superdry Plc UNITED KINGDOM LON Retail Retail Apparel/Shoes/Acc 1,977 4, KOMN.CH Komax SWITZERLAND SWX Capital Equipment Machinery Gen Industrial 1,331 4, SMS.GB Smart Metering Systems UNITED KINGDOM LON Utility Utility Gas Distribution 1,169 2, MILLION TO 1 BILLION 1 Stock 48 NOD.NO Nordic Semiconductor NORWAY OSL Technology Elec Semicondctor Fablss 974 1,

20 This Page Is Intentionally Left Blank. -18-

21 EUROPEAN FOCUS LIST ALLOCATIONS Market Cap Alloca ons in % 70.0% 65.7% 60.0% 50.0% 40.0% 30.0% 31.4% 20.0% 10.0% 0.0% Over 10 Billion 1 Billion to 10 Billion 2.9% 300 Million to 1 Billion 0.0% Under 300 Million Sector Alloca ons in % 25.0% 22.5% 20.0% 17.5% 22.9% 22.9% 15.0% 12.5% 11.4% 11.4% 11.4% 10.0% 7.5% 5.0% 2.5% 0.0% Technology Financials Consumer Staples 5.7% Consumer Cyclical Basic Materials 0.0% Healthcare Energy 2.9% 2.9% U lity Transporta on 8.6% 0.0% Capital Equipment Retail -19-

22 TOP PERFORMERS THIS WEEK Symbol Name Trading Country Market Value (Mil), USD O'Neil Industry Group Date Added # of Weeks Since Addition Performance This Week Performance Since Addition Page # TEMN.CH Temenos Group SWITZERLAND 10,042 Computer Sftwr Financial 07/21/ % % 42 SEB.FR Seb FRANCE 10,602 Hsehold Appliances/Wares 04/25/ % 19.10% 32 BAER.CH Julius Baer Gruppe SWITZERLAND 15,460 Banks Money Center 11/21/ % 6.50% 54 NOD.NO Nordic Semiconductor NORWAY 974 Elec Semicondctor Fablss 01/19/ % (5.05%) 48 KYGA.IE Kerry Group 'A' IRELAND 19,032 Food Packaged 10/13/17 17 (0.17%) 6.54% 86 RTO.GB Rentokil Initial UNITED KINGDOM 7,682 Comml Svcs Outsourcing 03/02/17 49 (0.34%) 20.33% 80 SOPH.GB Sophos Group UNITED KINGDOM 4,204 Computer Sftwr Security 04/04/17 44 (0.47%) % 46 KOMN.CH Komax SWITZERLAND 1,331 Machinery Gen Industrial 11/17/16 64 (0.80%) 28.80% 82 RCO.FR Remy Cointreau FRANCE 6,585 Beverages Alcoholic 02/15/17 51 (0.94%) 23.79% 84 JE.GB Just Eat UNITED KINGDOM 7,791 Internet Content 04/24/17 41 (1.00%) 36.57% 52 MTRO.GB Metro Bank (Wi) UNITED KINGDOM 4,549 Banks Money Center 02/06/17 52 (1.14%) 4.75% 56 BME.GB B&M European Val.Ret. (Di) UNITED KINGDOM 5,849 Retail Discount&Variety 08/04/17 27 (1.19%) 10.67% 72 WDIX.DE Wirecard (Xet) GERMANY 14,776 Finance CrdtCard/PmtPr 03/15/17 47 (1.35%) 96.61% 60 NOFI.NO Nor Finans Holding NORWAY 2,103 Banks Money Center 08/16/17 25 (1.64%) (5.12%) 58 SIX2X.DE Sixt (Xet) GERMANY 4,700 Leisure Services 01/16/18 3 (1.95%) (1.83%) 36 For a complete list of historical recommendations, please see 'Cumulative Positions Since Inception' at the end of the book. -20-

23 TOP PERFORMERS SINCE ADDED Symbol Name Trading Country Market Value (Mil), USD O'Neil Industry Group Date Added # of Weeks Since Addition Performance This Week Performance Since Addition Page # TEMN.CH Temenos Group SWITZERLAND 10,042 Computer Sftwr Financial 07/21/ % % 42 SOPH.GB Sophos Group UNITED KINGDOM 4,204 Computer Sftwr Security 04/04/17 44 (0.47%) % 46 STMX.DE Stabilus (Xet) GERMANY 2,338 Auto/Truck Original Eqp 12/04/ (7.42%) % 26 EUF.FR Eurofins Scientific FRANCE 11,055 Medical Research Eqp/Svc 03/05/ (5.16%) % 68 KER.FR Kering FRANCE 62,270 Apparel Clothing Mfg 11/15/16 64 (3.79%) 99.85% 28 WDIX.DE Wirecard (Xet) GERMANY 14,776 Finance CrdtCard/PmtPr 03/15/17 47 (1.35%) 96.61% 60 EVOG.SE Evolution Gaming Group SWEDEN 2,705 Computer Sftwr Gaming 02/23/17 50 (5.33%) 78.41% 44 STMN.CH Straumann Hldg. SWITZERLAND 11,603 Medical Products 02/21/17 50 (5.02%) 61.85% 62 MONC.IT Moncler ITALY 8,245 Apparel Clothing Mfg 12/07/16 61 (3.91%) 59.63% 30 ROFR.FR Teleperformance FRANCE 8,451 Comml Svcs Outsourcing 11/13/ (4.08%) 56.90% 78 BIM.FR Biomerieux FRANCE 10,496 Medical Products 08/31/16 75 (6.18%) 56.89% 64 AFR.ES Cie Automotive SPAIN 4,326 Auto/Truck Original Eqp 09/22/16 72 (2.53%) 49.20% 24 JE.GB Just Eat UNITED KINGDOM 7,791 Internet Content 04/24/17 41 (1.00%) 36.57% 52 AMP.IT Amplifon ITALY 3,879 Retail Specialty 03/01/17 49 (4.64%) 31.49% 74 KOMN.CH Komax SWITZERLAND 1,331 Machinery Gen Industrial 11/17/16 64 (0.80%) 28.80% 82 For a complete list of historical recommendations, please see 'Cumulative Positions Since Inception' at the end of the book. -21-

24 Plastic Omnium FRANCE WůĂƐƟĐ KŵŶŝƵŵ WKD W^ ϭϱ dž ϱ ϯϯ ϰ ϲϳ ϰ ϬϬ ϯ ϯϯ ϯ Ϭϳ Ϯ Ϯ ϱϯ Ϯ ϰθ Ϯ Ϯϳ ƵƚŽ dƌƶđŭͳkƌŝőŝŷăů ƋƉ ƉůĂƐƟĐŽŵŶŝƵŵ ĐŽŵ DŬƚ ĂƉ Φϱ ϲϯ ^ĂůĞƐ Φϲ ϲϱ >ĞǀĂůůŽŝƐ &Z E /ŶĐ ϱϱ ^ŚĂƌĞƐ ϭϱϭd &ůžăƚ ϲϯd W^ ƵĞ Ϯ ϭϱ ϮϬϭϴĞ K, D'Dd ŽǁŶƐ 2018 estimates revised up KDW 'E/ W> ^d/ KDE/hD ^ /^ &Z E Ͳ ^ W> ^d/ WZK ^^/E' 'ZKhW t/d, d/s/d/ ^ /E d, hdkdk /> E Es/ZKED Ed ^ dkz^ DKZ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ͲϬ ϰϯ Ϭ Ϯϭ Ϭ ϲ ϭ ϭϱ ϭ Ϯϭ ϭ ϯϯ ϭ ϱϯ ϭ ϳϱ Ϯ ϭϭ Ϯ ϳϮ Ϯź Ϯ ϴ ϭÿ W^ hz ^, &>Kt ^,Z hz Ϭ ϳϮ ϭ ϰθ Ϯ Ϯ Ϯϴ Ϯ ϱϳ Ϯ ϱ Ϯ ϴ ϯ ϯϯ ϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ͲϮй Ϯй Ͳ й ϰ ^ƚăďŝůŝƚljͿ ϭϭй Ͳϭ ϴй ϯϭй Ϯϴй й Ϯϯй Ϯϯй й Ϯϯй Ͳ ϭ ϰ ^ƚăďŝůŝƚljͿ Ͳ ϯϯй ϯ Ͳϭ Ϯй й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯ ϲϳ Ϯ ϰϱ ϯ Ϯ ϰ Ϭ ϰ ϲ ϰ ϯϯϱ ϰ ϰϯϳ ϱ Ϭ ϱ ϴϱϳ /Es d K ϭϯ dž ϱϲ KĐƚ Ϯϳ EŽǀ Ϭϯ EŽǀ EŽǀ EŽǀ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ d й ϴ ϳϯй ϳ ϲϯ ϲϰ ϲϰ ϲϯ ϲϱ ϲϲ ϲϰ ϲϱ ϲθ d y Z d й й Ϯϭй ϭϱϰ ϭϱθ ϭϲϭ ϭϲϭ ϭϱϯ ϭϱϰ ϭϱϯ ϭϱϲ ϭϱ <>K' ϭ ϲ ϭ ϴ ϭ ϱ ϭ Ϯ ϭ ϭ ϭ Ϭ ϭ Ϭ ϭ Ϯ ϭ Ϯ Z Θ ϭ Ϭ < s > ϯ ϳϰdž Ζϭϲ ϯϱ ϯ ϭϭ ϲ ϭϭ ϭϯ ϰϰ /s hz Ϭ ϰ ϭ ϯйͿ /s 'Z Zdнϭ ϲͿ ϲϯ ϲϳ ϲϯ ϳϯ ϲϰ ϲθ ϳϯ d ϭ Ϭϱ ϬϬͿ >W, Ϭ Ϭϰ Ϭ ϬϰͿ ϱθ ϱϭ ϰϳ ϱϭ ϱϯ ϰϰ ϯϲ ϯϯ ϮϬϭϲ DW>Kz ^ ϱ ϯϭйͿ Ϯ ϬϬ ϭ ϳϯ ϭ ϭ ϰϳ W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϱ нϯϯ ϭ ϰϭ ϴϳ ϲϰ ϬϬ W^ ZĂŶŬ Ϯ Improving sales growth in Strong EPS growth rates, Stable earnings Break out to 52-week highs; Actionable ϰϲ Plastic Omnium (POM.FR) is a leading global manufacturer of bumpers and fuel tanks. The Company continues to grow through acquisitions and capacity expansion. Company Overview Plastic Omnium is an automotive equipment manufacturer and seller of components such as bumpers, energy absorption systems, front-end modules, tailgates, and polyethylene fuel tank systems. The manufacturing activities of the Company s automotive business accounted for approximately 96% of revenues in 9M The remaining 4% were from the environment segment, which manufactures waste containers for households and public use cases revenues by geography: Europe, 57%; North America, 24%; Asia, 17%; South America, 2%. O Neil Methodology From 2011 to 2013, EPS had a CAGR of 7.14%. From 2014 to 2016, EPS CAGR was 14.89%, an acceleration in earnings growth. Sales revenue from 2011 to 2013 had a CAGR of 1.35%, while from 2014 to 2016 it had a CAGR of 14.9%. Consolidated revenues grew 21.3% y/y, driven by a 22.6% rise in revenues from the automotive business in 9M Organic revenues from the automotive business grew 11.8% y/y, surpassing the global automotive production by 9.1%, driven by rising SUV sales and new orders. The Company targets consolidated revenues of 8.3B by Growth Drivers In March, the Company announced the construction of two plants in the U.S., in addition to new plants erected in Chattanooga and Fairfax, to provide body parts for the BMW. The plants are expected to be operational starting in It invested about $300M in the construction of new plants in the U.S. over the past three years. Local Code: FR:POM Bloomberg Symbol: POM:FP ISIN: FR ϯϳ ϯϯ hz нϭ ϳϮϬ нϭ Rising CF per share, PT margins, and ROE Strong earnings profile ϭ Ϯϳ Source: Corporate Website Improving IG rank ϭ ϳϯ Ͳ Rising A/D rating on 1.2x up/down volume ϭ ϬϬ Ϭ ϴϳ Ϭ Ϭ ϳϯ ϭϱ ϭϯ ϭϭ Ϭ ϲϳ R/S trending higher Ϭ Ϭ ϱϯ ϴ Ϭ ϰϳ ϳ Ϭ ϰϭ ϲ Ϭ ϯϯ Ϭ ϯϭ ϱ ϰ ϲ Ϭ Ϯϴ ϰ Ϯ Ϭ Ϯϱ ϯ ϴ Ϭ Ϯϯ ϯ ϰ Increasing sponsorship Ϭ ϮϬ Strong upside volume ϯ Ϭ< ϰϭϭ< ϰϭ ϯ< нϯ ϮϬϬ< Ϯ&/E E / >^ ^ĞƉ ϭϯ ĞĐ ϭϯ ϲ W^ hzͿ Ϭ ϱϲ й W^ й, E' нϯ ϰ^ > ^ D/> hzͿϯ ϰϭϱ ϳ й нϭ W^ й ^hzwz/^ ϭ&he ^ ϭϭϭ ϭ Ϭ^, Z ^, > z &he ^ ϭϰd ϭϰd DĂƌ ϭϱϯ ϭϱd :ƵŶ Ϭ ϲϲ Ϯ ϲ ϱ Ͳ ^ĞƉ ϭϰθ ϭϱd ϭθϯ ϭϱd Π ϮϬ t/>>/ D KΖE /> н K /E ĞĐ Ϭ ϲϲ нϭθй Ϯ ϯϲϰ Ϯ ͲϮй ϮϭϮ ϭϲd Ϯ D Ϭ ϳϰ нϭϯй Ϯ ϰϲϰ Ϯ нй ϳ D ϮϱϮ ϭθd Ϭ ϳ нϯ Ϯ Ϭ Ͳ ϰ D Ϯ D Ϭ ϲ нϯ Ϯ ϰϳϰ ϯ ϮϳϮ ϮϬD Ϯ ϮϬD Ϭ ϳ Ϯ ϱ нϭ Ϯ D ϯϭϭ D ϭ Ϭϱ н Ϯ ϲ Ϭ нθй Ͳϴ ϰй ^ĞƉ ϭϲ ϯϲϯ ϮϯD ϱ D ĞĐ ϭϲ ϭ Ϭϲ нй ϯ ϳ ϯ нй DĂƌ ϰϭθ ϮϱD ϰϭθ D :ƵŶ ϭ нϯ ϯ ϰϱϰ нϯ н ϰ D ^ĞƉ ĞĐ ϭ Ğ нϯϯйğ ϯ ϯϳϰ ϬĞ нğ ϭϰ ϮϬ Ɛƚ ϳ ϮϬϭϴ Ɛƚ ϭϯ ϱ ϱͳljƌ,ŝőś ϮϬ ϱͳljƌ >Žǁ ϲ ǀƐ /ŶĚ ǀŐ Ϭ dž WůĂƐƟĐ KŵŶŝƵŵ WKD &ZͿ tğğŭůlj ĂƐ ŽĨ dƶğ ĞĐĞŵďĞƌ ϮϬ In July 2016, the Company completed the acquisition of Faurecia s Exterior Systems business. Through this deal, Plastic Omnium increased the size of its existing Auto Exteriors business by 50% and became the leader in automotive exterior components, with a global market share of about 15%, compared with about 7% for its closest competitor. In addition to turning around the acquired business, it expects better loading ratios (utilization rates) for its Chinese plants to contribute to better operating margins. By 2021, it plans to expand its market share to 26% and 16%, for exterior body parts and fuel systems segments, respectively. Looking Forward From 2016 to 2020, Plastic Omnium expects global automotive production to grow 10.7% on an absolute basis, a CAGR of nearly 2.6%. The Company aims to significantly outperform the overall market with a revenue CAGR of about 13% from 2016 to This outperformance will be driven by global market share gains in bumpers, fuel systems, and selective catalytic reduction systems. The Company states that 85% of revenue expectations for 2021 have been secured in its 2017 order book. This gives visibility for revenues going forward and makes the projections for market share gains achievable. The next catalyst is the Company s Q results to be announced on February 15,

25 FRANCE W^ ϭϱ dž ϲ ϬϬ ϱ ϯϯ ϰ ϲϳ ϰ ϬϬ ϯ ϯϯ ϯ Ϭϳ Ϯ Ϯ ϱϯ Ϯ ϰθ Ϯ Ϯϳ WůĂƐƟĐ KŵŶŝƵŵ WKD &Z W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϱ нϯϯ ϭ ϰϭ ϴϳ ϲϰ ϬϬ W^ ZĂŶŬ ϯ ƉůĂƐƟĐŽŵŶŝƵŵ ĐŽŵ ƵƚŽ dƌƶđŭͳkƌŝőŝŷăů ƋƉ Plastic Omnium DŬƚ ĂƉ Φϲ Ϭϯ ^ĂůĞƐ Φϲ ϲϱ >ĞǀĂůůŽŝƐ &Z E /ŶĐ ϱϱ ^ŚĂƌĞƐ ϭϱϭd &ůžăƚ ϲϯd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 KDW 'E/ W> ^d/ KDE/hD ^ /^ &Z E Ͳ ^ W> ^d/ WZK ^^/E' 'ZKhW t/d, d/s/d/ ^ /E d, hdkdk /> E Es/ZKED Ed ^ dkz^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ͲϬ ϰϯ Ϭ Ϯϭ Ϭ ϲ ϭ ϭϱ ϭ Ϯϭ ϭ ϯϯ ϭ ϱϯ ϭ ϳϱ Ϯ ϭϭ W^ hz Ϯ ϳϮ ϮŸ ϯ Ϭϭ ϭϭйÿ ^, &>Kt ^,Z hz Ϭ ϳϮ ϭ ϰθ Ϯ Ϯ Ϯϴ Ϯ ϱϳ Ϯ ϱ Ϯ ϴ ϯ ϯϯ ϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ͲϮй Ϯй Ͳ й ϰ ^ƚăďŝůŝƚljͿ ϭϭй Ͳϭ ϴй ϯϭй Ϯϴй й Ϯϯй Ϯϯй й Ϯϯй Ͳ ϭ ϰ ^ƚăďŝůŝƚljͿ Ͳ ϯϯй ϯ Ͳϭ Ϯй й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯ ϲϳ Ϯ ϰϱ ϯ Ϯ ϰ Ϭ ϰ ϲ ϰ ϯϯϱ ϰ ϰϯϳ ϱ Ϭ ϱ ϴϱϳ /Es d K ϭϯ dž ϱϲ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϴ ϳϯй ϳ ϲϰ ϲϱ ϲ ϲθ ϲ ϲ ϳϭ ϳϯ ϲ d y Z d й й Ϯϭй ϭϱϯ ϭϱϲ ϭϲϭ ϭ ϭϱϰ ϭϱϲ ϭϱθ ϭϱθ ϭϱθ <>K' ϭ Ϭ ϭ Ϯ ϭ ϰ ϭ ϰ ϭ ϲ ϭ ϳ ϭ ϲ Ϯ Ϭ ϭ ϲ Z Θ ϭ Ϭ < s > ϰ dž Ζϭϲ ϭϯ ϰθ ϰθ ϱϯ ϱϳ ϲϰ ϱϲ ϰϯ /s hz Ϭ ϰ ϭ ϮйͿ /s 'Z Zdнϭ ϲͿ ϲϰ ϲθ ϳϱ ϳϰ ϳϴ ϳϳ ϴϭ ϴϭ ϳϴ d ϭ ϬϮ ϰϭ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϱͿ ϰϰ ϯϲ ϯϭ Ϯϯ ϭθ ϭθ ϮϬϭϲ DW>Kz ^ ϱ ϯϭйͿ ϰϲ ϯ ϯ hz Ͳϭ Ϯϳ Ͳϯ Ϭϴй Ϯ ϬϬ ϭ ϳϯ ϭ ϭ ϰϳ ϭ Ϯϳ ϳϴ Ͳ ϭ ϭ ϬϬ ϭϱ Ϭ ϴϳ Ϭ Ϭ ϳϯ ϭϯ ϭϭ Ϭ ϲϳ Ϭ Ϭ ϱϯ ϴ Ϭ ϰϳ ϳ Ϭ ϰϭ ϲ Ϭ ϯϯ Ϭ Ϯ ϰ ϴ ϰ ϰ Ϭ Ϯϳ ϰ Ϭ ϯ ϲ Ϭ Ϯϭ ϯ Ϯ ϯϯ Ϯ< Ϭ< нϯ ϰϭϭ< ϮϬϬ< ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ ϱϲ W^ hzͿ W^ й, E' нϯ Ϯ ϰϭϱ ϳ ^ > ^ D/> hzͿ нϭ DĂƌ W^ й ^hzwz/^ ϭϭϭ ϭ &he ^ ϳϴϯ ϴϱϭ ϭϰd ^, Z ^, > z &he ^ ϭϱϯ ϭϱd :ƵŶ Ϭ ϲϲ Ϯ ϲ ϱ Ͳ ^ĞƉ ϭϰϳ ϭϱd ϭθϭ ϭϱd ĞĐ Ϭ ϲϲ нϭθй Ϯ ϯϲϰ Ϯ ͲϮй Ϯϭϭ ϭϲd Ϯ D Ϭ ϳϰ нϭϯй Ϯ ϰϲϰ Ϯ нй ϳ D ϮϱϮ ϭθd Ϭ ϳ нϯ Ϯ Ϭ Ͳ ϰ D Ϯϱ D Ϭ ϲ нϯ Ϯ ϰϳϰ ϯ Ϯϳϭ ϮϬD Ϯϱ ϮϬD Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϳ Ϯ ϱ нϭ Ϯ D ϯϭϭ D ϭ Ϭϱ н Ϯ ϲ Ϭ нθй Ͳϴ ϰй ϯϲϭ ϮϯD ^ĞƉ ϭϲ ϰ D ĞĐ ϭϲ ϭ Ϭϲ нй ϯ ϳ ϯ нй DĂƌ ϰϭθ ϮϱD ϰ D :ƵŶ ϭ нϯ ϯ ϰϱϰ нϯ н ϰ D ^ĞƉ ĞĐ ϭ Ğ нϯϯйğ ϯ ϯϳϰ ϬĞ нğ ϭϰ ϮϬ Ɛƚ ϭϰ ϮϬϭϴ Ɛƚ Ϯ ϱͳljƌ,ŝőś ϮϬ Ϭ ϱͳljƌ >Žǁ ϲ Ϭ Ϭ Ϯϱ ϭϯϱ ϭ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž WůĂƐƟĐ KŵŶŝƵŵ WKD &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -23- Consumer Cyclical: Auto/Truck-Original Eqp

26 Cie Automotive SPAIN ŝğ ƵƚŽŵŽƟǀĞ &Z ^ W^ ϭϰ dž ϯ ϱϳ ϯ Ϯ ϯ ϬϬ Ϯ ϳϭ Ϯ ϰϯ Ϯ ϭϰ ϭ ϴϲ ϭ ϳϭ ϭ ϱϳ ϭ ϯϲ D Z/ Ͳ^/ džđś ^Ϭϱϲϯϭϱ н ϰϲ Ϭϱϰ ϴϯϱ W^ ZĂŶŬ ϴϱ ƵƚŽ dƌƶđŭͳkƌŝőŝŷăů ƋƉ DŬƚ ĂƉ ΦϮ ϯϯ ^ĂůĞƐ ΦϮ ϲϰ ĐŝĞĂƵƚŽŵŽƟǀĞ ĐŽŵ ^ŚĂƌĞƐ ϭϯd &ůžăƚ ϰθd W^ ƵĞ ϭϭ ϭϰ ϮϬϭϲĞ K, ͲϮй ^W /ED'Dd ŽǁŶƐ / hdkdkd/s ^ /^ ^W /EͲ ^ KDW Ez E' ' d,zkh', /d^ ^h ^/ / Z/ ^ /E d, WZK h d/ke K& /K&h >^ ^ t >> ^ /E d, ^hww>z K& KDWKE Ed^ E ^h ^^ D >/ ^ &KZ d, hdkdkd/s /E h^dzz EEh > Ͳ E ϮϬϬϳ ϮϬϬϴ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ Ϭ ϰϱ Ϭ ϰϳ Ϭ Ϭ Ϭ ϱϰ Ϭ ϱϳ Ϭ ϱϲ Ϭ ϲϱ ϭ ϬϬ W^ hz ϭ йÿ ϭ ϱϰ йÿ ^, &>Kt ^,Z hz ϭ Ϭ ϳ Ϭ ϰϯ ϭ Ϭϳ ϭ ϱϭ ϭ Ϯϭ ϭ ϱϯ ϭ ϳϭ ϭ ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯй ϯй ϯ ϳ ^ƚăďŝůŝƚljͿ Ϯ Ϯ Ϯϭй Ϯϭй ϭ ϭ ϭ Ϯϯй Ͳϭϲ ϭ ϭϯ ^ƚăďŝůŝƚljͿ ϭ ϯϯй ͲϮϭй ϰ ϴй Ͳϭ Ϯϴй й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ Ϯϳϴ ϭ ϰϱϱ ϭ ϭϰ ϭ ϲϰ ϭ ϴϯϯ ϭ ϲϰϲ ϭ ϳϮϯ Ϯ Ϯ Ϯ ϲϯϯ /Es d K ϳ Ϯdž ϰϱ :Ƶů Ϯ ƵŐ Ϭϱ ƵŐ ϭϯ ƵŐ ƵŐ ^ĞƉ ϬϮ ^ĞƉ Ϭ ^ĞƉ ϭϲ ^ĞƉ d й Ͳϭϱ ϭϱϯй ϭϱϭй ϭϰϰй ϳϱ ϳϰ ϳϯ ϲϯ ϳϭ ϲθ ϲθ ϱϳ d y Z d Ͳϭϱ Ϯϴй й Ϯ ϮϯϮ Ϭ ϳ ϭ ϭϱϳ ϳ ϭ ϭ <>K' Ͳϭϱ ϭ ϱ ϭ ϯ ϭ ϭ ϭ ϰ ϭ ϲ ϭ ϲ ϭ ϲ ϭ ϳ ϭ ϴ Z Θ < s > ϯ ϭdž Ζϭϱ ϭθ Ϯϭ Ϯϯ Ϯ /s hz Ϭ ϯϯ ϭ Ϳ /s 'Z Zdнϭ Ϳ ϳ ϳϲ ϳϰ ϳϭ ϳϭ ϳϲ d Ϭ ϲ ϴϭ ϬϬͿ >W, Ϭ ͲϬ ϬϴͿ ϰ ϴ ϴ ϭϰ ϭϲ ϭϭ ϭϭ DW>Kz ^ Ϯϯ ϬϮϴ ϭϭйͿ 6WURQJ HVWLPDWHV UHYLVHG KLJKHU %UHDNV LQWR QHZ KLJKV ϭ Ϯϭ Source: Corporate Website ϭθ Ϭϳ hz нϭ ϯϱ нϱ ϰ ϭ ϭϭ ϭ Ϭϳ ϭϱ +LJK 8 ' YROXPH Ϭ ϯ Ϭ ϴϲ Ϭ ϳ ϭϯ ϭϭ ϳϲ н Ϭ ϳϭ Ϭ ϲϰ Company Overview CIE manufactures and supplies automotive components to vehicle manufacturers (OEMs) and Tier 1 suppliers. Through its subsidiary, Dominion, it offers multi-services and solutions that maximize the efficiency of production processes. 9M 2017 revenues by division: Europe, 30%; NAFTA, 25%; Mahindra Europe, 17%; Asia (India/China), 17%; Brazil, 11%. Ϭ ϱϳ ϴ Ϭ ϳ Ϭ ϰϯ CIE Automotive (CIE) is one of the leading global automotive producers and suppliers. The Company benefits from increasing revenues from its growing automotive segment. ϰϲ ϲ 5 6 OLQH DW QHZ KLJK Ϭ ϯϲ Ϭ ϯϯ ϱ ϰ ϲ Ϭ ϰ Ϯ Ϭ Ϯϳ ϯ ϴ Ϭ ϯ ϰ Ϭ Ϯϭ ϯ Ϭ Ϭ Ϭ ϭϲ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ ϭϰ ϭ,qfuhdvlqj VSRQVRUVKLS Ϭ ϭϯ ϭ ϳ Ϭ< ϱϭ ϲ< Ϭ< Ϭ< нй Ϭ< ϭ&/e E / >^ :ƵŶ ϭϭ ^ĞƉ ϭϭ ϳ W^ hzͿ Ϭ ϭϱ Ϭ й W^ й, E' нθ нϲϯй ϴ^ > ^ D/> hzͿ ϰϳθ ϰϯϭ ϭ й нϭ нϭ ĞĐ ϭϭ Ϭ Ϭ DĂƌ ϭϯ Ϭ ϭϰ :ƵŶ ϭϯ Ϭ ^ĞƉ ϭϯ Ϭ ϭϯ ĞĐ ϭϯ Ϭ ϭϯ Ͳϭϴй нϯ Ͳϴй нϯϯй ϰϰϭ н ϱ ͲϭϮй ϯ ϲ ͲϭϮй ϯϱ Ϭ Ͳϴй DĂƌ ϯϳ ϳ Ͳϭ :ƵŶ Ϭ ϯϯ ^ĞƉ ϴϮ ϯ ĞĐ Ϭ Ϯϱ ϱ Ϭ ϯϯ Ϭ ϯϯ Ϭ ϱϯ Ϭ ϰϳ Ϭ ϲϰ нϯй нϯθй нϲϭй нϰ нϯϭй ϭ Ϭϱϴ ϰ нϯθй ϭ ϭϱϭ ϭ нй ϭ ϯ ϲ нй ϭ ϮϮ нϭϯй ϭ ϱ нϭй ^ĞƉ ϭϲ ϭϲ ϮϬϭϲ Ɛƚ ϭϰ ϱͳljƌ,ŝőś ϮϬ O Neil Methodology Revenues and EBITDA CAGR was 13% from The Company expects to double its net profit by 2019 from The Company s EPS Rank of 99 is supported by double-digit EPS growth over the past few quarters. In 9M 2017, the Company reported better-than-expected revenues of 2.69B (+30% y/y), EBITDA of 399.0M (+31% y/y), and net income of 165.9M (+35% y/y). The automotive division (81% of 9M 2017 revenues) registered organic top-line growth of 15.9% y/y, while the Dominion segment (remaining 19% of 9M 2017 revenues) had organic revenue growth of 7.9% y/y. NAFTA is one of the top global markets in terms of growth potential. The Company expects a sales CAGR of 10% from , versus market growth of 2%. Within NAFTA, Mexico is set to become the fifth-largest vehicle producer in 2020, up from seventh in In Asia, the Company expects a CAGR of 10%, versus market growth of 4%, from India remains a key strategic focus, as approximately 80% of Asian sales are from India. Brazil is a key market for CIE, and is expected to improve from 2018 onward. The Company expects a sales CAGR of 10%, versus market growth of 5%, from Growth Drivers CIE aims to grow its top-line organically at a CAGR of 8.5% from and improve its EBIT margin to 12.1% by 2020, compared with 10% in The Company has five green field projects planned for NAFTA and Asia, four in Brazil, three in Europe, and two in Mahindra Europe, from Looking Forward The Company plans to add 0.7B and 0.3B of sales from its automotive and Dominion segments, respectively, by The Dominion segment s revenue CAGR is expected to be more than 6% from , reaching more than 700M. EBIT margin is targeted at 8% by The Dominion segment is expected to generate sales of approximately 300M through acquisitions. Q results are expected to be announced on February 26, Local Code: ES:CIE Bloomberg Symbol: CIE:SM ISIN: ES W^ й ^hzwz/^ ϱ&he ^ ϴϰ нϭ ϰй ϳϲ ϳϴ ϳϳ ϭϰ ϮϬϱ Ϯϭϰ ϯ Ϯ Ϯϴϯ Ϯ ϭ^, Z ^, > z &he ^ ϯ ϱϲθ ϭ ϯ ϯϯϳ ϭϭϲ Ϯ ϴϲ Ϯ ϲϱϭ ϴϲϲ Ϯ ϱ ϱϯϭ Ϯ ϯϯϭ Ϭϲϰ Ϯ ϭϭϱ Ϭ Ϯ ϭϲϰ ϳϲϯ Ϯ ϭϲ ϯ ϳ ϰϭϯ ϳ ϳ ϯϯ ϴϯϮ D ϮϬD D ϮϭD D D D -24- ϳϳ ϲθ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ϭϭϭ Π ϮϬϭϲ t/>>/ D KΖE /> н K /E ϳ нϳϭ ϰй ϳϰ ϲ ϭϭϭ Ϯϴϲ ϯϭϭ ϯϯϭ ϮϯD D D ŝğ ƵƚŽŵŽƟǀĞ &Z ^Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ ^ĞƉƚĞŵďĞƌ ϮϬϭϲ Ĩ dśƶ ^ĞƉƚĞŵďĞƌ ϮϬϭϲ

27 SPAIN ŝğ ƵƚŽŵŽƟǀĞ &Z ^ W^ ϭϰ dž ϰ Ϯ ϯ ϱϳ ϯ Ϯ ϯ ϬϬ Ϯ ϳϭ Ϯ ϰϯ Ϯ ϭϰ ϭ ϴϲ ϭ ϳϭ ϭ ϱϳ ϭ ϱϭ D Z/ Ͳ^/ džđś ^Ϭϱϲϯϭϱ н ϰϲ Ϭϱϰ ϴϯϱ W^ ZĂŶŬ ϳ ƵƚŽ dƌƶđŭͳkƌŝőŝŷăů ƋƉ Cie Automotive DŬƚ ĂƉ Φϯ ϰθ ^ĂůĞƐ Φϯ ϯϯ ĐŝĞĂƵƚŽŵŽƟǀĞ ĐŽŵ ^ŚĂƌĞƐ ϭϯd &ůžăƚ ϱd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ ^W /ED'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 / hdkdkd/s ^ /^ ^W /EͲ ^ KDW Ez E' ' d,zkh', /d^ ^h ^/ / Z/ ^ /E d, WZK h d/ke K& /K&h >^ ^ t >> ^ /E d, ^hww>z K& KDWKE Ed^ E ^h ^^ D >/ ^ &KZ d, hdkdkd/s /E h^dzz DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϰϳ Ϭ Ϭ Ϭ ϱϰ Ϭ ϱϳ Ϭ ϱϲ Ϭ ϲϱ ϭ ϬϬ ϭ W^ hz ϭ ϲϳ ϯϯйź ϭ ϱ ϭÿ ^, &>Kt ^,Z hz Ϭ ϳ Ϭ ϰϯ ϭ Ϭϳ ϭ ϱϭ ϭ Ϯϭ ϭ ϱϯ ϭ ϳϭ ϭ ϭ Ϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯй ϯй Ͳ й ϰ ^ƚăďŝůŝƚljͿ ϭ Ϯϭй Ϯϭй ϭ ϭ ϭ Ϯϯй й Ͳ й ϭϯ ^ƚăďŝůŝƚljͿ ϭ ͲϮϭй ϰ ϴй Ͳϭ Ϯϴй й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϰϱϱ ϭ ϭϰ ϭ ϲϰ ϭ ϴϯϯ ϭ ϲϰϲ ϭ ϳϮϯ Ϯ Ϯ Ϯ ϲϯϯ Ϯ ϴϳ /Es d K ϳdž ϰ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϭϱϭй ϭϰϰй ϯй ϲϯ ϲϰ ϲϯ ϲϭ ϲϭ ϲϭ ϲϰ ϲϯ d y Z d Ϯϴй й Ϯ ϭϯϳ ϭ ϭ ϭ ϭϯϭ ϭ ϭ ϭϯϭ ϭϯϭ <>K' ϭ ϴ ϭ ϱ ϭ ϰ ϭ ϯ ϭ ϰ ϭ Ϯ ϭ Ϯ ϭ ϴ ϭ ϯ Z Θ < s > ϰ dž Ζϭϲ ϯ ϯϲ ϰϯ ϰϰ ϰϳ ϰϭ ϲϱ ϰϳ /s hz Ϭ ϰ ϭ ϴйͿ /s 'Z ZdнϮϯй Ϳ ϴϯ ϴϱ ϴϰ ϴϯ ϴϮ ϴϮ ϴϱ ϭ d Ϭ ϱϯ ϭϰ ϬϬͿ >W, Ϭ ϭϲ Ϭ ϭϱͿ ϴ ϭϭ ϭϭ ϴ ϱ ϮϬϭϲ DW>Kz ^ Ϯϯ ϲ ϯйͿ ϰϲ ϲ hz ͲϬ Ϭ ͲϮ ϱϯй ϭ ϯϲ ϭ Ϯϭ ϭ Ϭϳ ϭϱ Ϭ ϯ Ϭ ϴϲ Ϭ ϳ ϭϯ ϭϭ Ϭ ϳϭ Ϭ ϲϰ Ϭ ϱϳ ϴ Ϭ ϳ Ϭ ϰϯ ϲ Ϭ ϯϲ Ϭ ϯϯ ϱ ϰ ϲ Ϭ ϰ Ϯ Ϭ Ϯϳ ϯ ϴ Ϭ ϯ ϰ Ϭ Ϯϭ ϯ Ϭ Ϭ Ϭ ϭϲ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ< ϳ ϲ< Ϭ< нϯ Ϭ< Ϭ< ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ :ƵŶ ^ĞƉ ĞĐ &/E E / >^ Ϭ ϭϯ Ϭ ϭϯ Ϭ ϯϯ Ϭ Ϯϱ W^ hzͿ Ͳϴй нϯϯй W^ й, E' ϯϱ Ϭ ϯϳ ϳ ϴϮ ϯ ϱ ^ > ^ D/> hzͿ Ͳϴй Ͳϭ нϳϭ ϰй W^ й ^hzwz/^ ϳϳ ϲθ ϳϰ ϲ ϭϭϭ ϭϭϭ &he ^ ϯϯϭ Ϭϲϰ Ϯ ϭϭϱ Ϭ Ϯ ϭϲϰ ϳϲϯ Ϯ ϭϲ ϯ ϳ ϰϭϯ ϳ ϳ ϯϯ ϴϯϮ ^, Z ^, > z &he ^ Ϭ ϯϯ нϯй ϭ Ϭϱϴ ϰ нϯθй ϮϬϱ ϮϬD Ϯ D Ϭ ϯϯ нϯθй ϭ ϭϱϭ ϭ нй Ϯ ϮϭD D Ϭ ϱϯ нϲϭй ϭ ϯ ϲ нй ϮϴϮ D Ϯϴ D Ϯϴϱ ϮϯD ϯ D Ϭ ϲϰ нϯϭй ϭ ϱ нϭй ^ĞƉ ϭϲ ϯϯϲ ϮϱD ϯϱϯ ϮϱD ĞĐ ϭϲ Ϭ ϲϯ нϯϯй ϭ ϱϯ ϱ нϭθй DĂƌ ϯ D ϯϲϯ D :ƵŶ Ϭ ϴ нϯ ϭ ϳϰ Ϭ нϯϯй ^ĞƉ ĞĐ ϭϲ ϮϬ Ɛƚ ϭϲ ϮϬ ϮϬϭϴ Ɛƚ ϴϱ ϱͳljƌ,ŝőś ϮϬ Ϭ ϱͳljƌ >Žǁ Ϭ ϭϰ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϰϳ нϰ ϭ ϮϮ нϭϯй ϯϱϳ D ǀƐ /ŶĚ ǀŐ ϭ ϭdž ŝğ ƵƚŽŵŽƟǀĞ &Z ^Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -25- Consumer Cyclical: Auto/Truck-Original Eqp

28 Stabilus (Xet) GERMANY ^ƚăďŝůƶɛ yğƚͿ ^ddy &K ϮϬ dž y dz džđś >hϲϲϲϲϯϳ ůğđƚƌžŷŝđͳwăƌƚɛ DŬƚ ĂƉ Φϳϰϴ ϲϯd ^ĂůĞƐ Φϱϴϰ D >ƵdžĞŵďŽƵƌŐ ' ZD Ez W^ ZĂŶŬ ϰϱ ^ŚĂƌĞƐ ϮϭD &ůžăƚ ϭϲd 2+ D'Dd ŽǁŶƐ ^d />h^ ^ &KZD Z>z ^ Zsh^,K> K ^ Z> /^ >hy D KhZ'Ͳ ^ KDW Ez d, KDW Ez /^ d, hdkdkd/s E /E h^dz/ > ^hww>/ Z EEh > Ͳ ^ W E ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ ƐƟŵĂƚĞ ϮϬϭϲ ƐƟŵĂƚĞ Ϭ ϰϭ ͲϬ ϳϳ Ϭ ϱϰ W^ Φ ϭ ϱθ ϯйÿ Ϯ ϰϳ ϱÿ ^, &>Kt ^,Z Φ ϭ ϯ ϭ ϴϱ ϭ ϯϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰй Ͳϭй Ϯй Ͳϭϱ ϭϯй ͲϮϯй й Ͳϭϱ ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ Φ ϰϰϰ ϰ ϳ /Es d K ϳ dž ϱϲ ͲKĐƚ ϭϲͳkđƚ ϮϯͲKĐƚ ͲKĐƚ ϲͳežǀ ͲEŽǀ ϮϬͲEŽǀ ϮϳͲEŽǀ ϯͳ ĞĐ d й Ͳϭϰ ϰй ϯ ϯй ϰ ϰϲ ϰϲ ϱϲ ϱϱ ϱϭ ϰ ϰϱ ϱθ d y Z d Ͳϭϰ ϱϯй ϭϰ ϭϭ ϭϭ <>K' Ͳϭϰ ϭ ϲ ϭ ϲ ϭ ϴ ϭ ϰ ϭ ϯ ϭ ϱ ϭ ϯ ϭ ϲ ϭ Z Θ Ϯ ϭ < s > ϴϰdž Ζϭϰ Ͳϱ Ͳϭϱ Ͳϭϲ ͲϮϭ ͲϮϯ ͲϮϬ Ͳ ϴ /s Φ EŽŶĞ /s 'Z Zd ϳ ϴϭ ϴϯ ϴϭ ϳ ϲϯ d Ϭ ϱϱ ϱϲ ϬϬͿ >W, Ϭ Ϭϱ ͲϬ ϬϱͿ ϭ ϭ ϭ ϯ ϭ ϭϯϭ ϲ ϭϯθ ϭϭϰ DW>Kz ^ ϰ Ϭϱϱ Ϳ ϭ ϭ ϭϯϭ ϭ Increased estimates Ϭ Breaks out of consolidation ϰϲ ϯϲ ϭϯ Source: Corporate Website hz нϯ ϳϴ нθ ϯ Ͳ Stabilus S.A. (STMX.DE) is a leading manufacturer of POWERISE system, gas springs, and electrical lifting equipment in Germany. The Company continues to grow globally through the capacity expansion of its POWERISE system. ϭϱ 10-Week MA 40-Week MA ϭϯ ϭϭ ϴ ϳ ϲ Company Overview Stabilus offerings include non-locking and locking gas springs, hydraulic dampers, automatic drive systems, and spare parts. The Company caters its products globally to automotive, medical technology, and other industrial applications. Currently, it has 11 production facilities across nine countries, and distributes its products to more than 50 countries. FY 2017 revenue by geography: Europe, 50%; North American Free Trade Agreement region (NAFTA), 39%; APAC and rest of the world, 11%. O Neil Methodology In FY 2017, the Company s revenues grew 23.4% y/y to 910.0M, in line with consensus estimates. EPS grew about 45% y/y to For FY 2018, management expects organic revenue growth of about 7% and adjusted EBIT margin of 15.5%. It targets average sales growth of more than 6% per year through Stabilus displays great O Neil fundamental metrics, with 28% ROE in FY 2016 and pretax margin increasing to 9% in FY 2016 from 2% in FY The Company s five- and three-year sales growth are 17% and 12%, respectively. Its three-year earnings growth is 86%. In FY 2017, revenue growth accelerated to 23% from 4% in Growth Drivers Stabilus SA has a global market share of about 70% in automotive gas springs and 35% in POWERISE systems. Local Code: DA113Q5 Bloomberg Symbol: STM:GR ISIN: LU ϱ >/E sk>hd Ϭ< Ϭ< н Ϭ< ϯ< E ^ W &/E E / >^ W^ ΦͿ D Z ϭϭ :he ϭϭ ^ W ϭϭ ϭϭ D Z ϭϯ :he ϭϯ ^ W ϭϯ Ϭ ϰϭ W^ й, E' ϰϰϯ ϱ ^ > ^ D/> ΦͿ W^ й ^hzwz/^ ϭϯ D Z :he ^ W ͲϬ ϳϳ Ϭ ϭϯ ͲϮϮй н ϰ ϭ ϭϭϲ Ϯ нϰй нϭϭй D Z ϭϰ Ϭ Ϯϯ :he ϭϰ ͲϬ ϯϳ ^ W ϭϰ Ϭ ϱϳ Ͳϯϲϰй ϭϯ ϴ ϭ Ϯ ϭ Ϯ нθй ϭϰ Ϭ ϯϳ D Z ϭϱ Ϭ ϲ :he ϭϱ Ͳϭ Ϯϯ нϯϭθй нϯϭ ͲϮϯϮй ϱ ϭ ϭϱϳ ϱ нϭ нϯϭй ^ W ϭϱ ϱϯ ^, Z ^, > z &he ^ Π t/>>/ D KΖE /> н K /E ϱϱ ϴϭ ϯ W ϱϱ ϮϬϭϲ Ɛƚ ϭϱ ϭ ϰ ϭϱ ϰğ нϯϯй нϯϭйğ Ͳϲ &he ^ ϭ ϱͳljƌ,ŝőś ϱͳljƌ >Žǁ ϭϲ ǀƐ /ŶĚ ǀŐ Ϯ ϴdž ϭϭϲ ϭ ϯ ϮϬ ϬϮϯ ϰ ϳ ϰϱϭ ϴ ϭϰϰ Ϭ ϴ Ϭϰϳ ϴϳ ϳϭϭ ϭϭd ^ƚăďŝůƶɛ yğƚͿ ^ddy Ϳ tğğŭůlj ĂƐ ŽĨ d,h Ϭϯ ĞĐĞŵďĞƌ Ϭϯ ĞĐĞŵďĞƌ In FY 2017, adjusted EBIT grew 41% y/y, while adjusted EBIT margin improved to 15.1%. Automotive segment revenue grew 13.3% y/y in FY 2017.Within automotive, growth is mainly driven by the POWERISE business, which grew 24.5% y/y due to production ramp-ups and new product launches. Industrial segment revenue increased 46.8% y/y. The Company continues to benefit from increasing demand for SUVs, which in turn drives the growth of its POWERISE systems and gas springs. In April 2016, the Company signed an agreement to acquire entities of the SKF Group for $339M. These are industrial suppliers in the fields of damping, vibration, and motion control for a broad spectrum of clients. With this acquisition, Stabilus expands its product portfolio in the industrial sector. Looking Forward The penetration of POWERISE is expected to increase from 20% in FY 2016 to 40% in FY As a result, POWERISE revenues are expected to have a CAGR of 17% over the next three years. Consensus estimates have the Company s EPS growing 7% y/y in FY The next catalyst is the Company s Q1 FY 2018 earnings release on February 5,

29 GERMANY ^ƚăďŝůƶɛ yğƚͿ ^ddy W^ Ϯϱ dž ϴ ϳ ϲ ϲ ϬϬ ϱ ϮϬ ϰ ϰ ϰϭ ϰ ϬϬ ϯ y dz džđś >hϲϲϲϲϯϳ >ƵdžĞŵďŽƵƌŐ ' ZD Ez W^ ZĂŶŬ Ϯ ƵƚŽ dƌƶđŭͳkƌŝőŝŷăů ƋƉ DŬƚ ĂƉ Φϭ ϴϴ ^ĂůĞƐ Φ ϬϮD Stabilus (Xet) ^ŚĂƌĞƐ ϮϱD &ůžăƚ ϮϱD y /s Ϯ ϭϱ ϮϬϭϴ W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳϴй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ^d />h^ ^ &KZD Z>z ^ Zsh^,K> K ^ Z> /^ >hy D KhZ'Ͳ ^ KDW Ez d, KDW Ez /^ d, hdkdkd/s E /E h^dz/ > ^hww>/ Z DKZ EEh > Ͳ ^ W E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ Ϭ ϰϭ ͲϬ ϳϳ Ϭ ϱϰ Ϭ ϴϮ Ϯ Ϯϭ ϯ Ϯϭ W^ hz ϰ ϭϯ ϮϴйŸ ϰ Ϯ ϰй ^, &>Kt ^,Z hz Ϯ ϱϳ Ϯ ϲ ϭ ϴϰ Ϯ ϯ ϰ ϰϭ ϱ ϲϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰй Ͳϭй Ϯй ϭϯй Ͳ ϴϯй ϰϭ ^ƚăďŝůŝƚljͿ й ͲϮϯй й й Ϯϴй Ϯ Ͳ ϴϯй ϰϭ ^ƚăďŝůŝƚljͿ ϭθй ϰй ϭ Ϯϭй Ϯϭй Ϯϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϰϰϰ ϰ ϳ ϲϭϭ ϳ /Es d K ϳ ϲdž ϱ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ ϭϱϯй ϯй ϲ ϲϰ ϲϰ ϲϱ ϲϲ ϲϰ ϲϰ ϲϯ d y Z d Ͳ ϰ Ϯ Ϯ Ϯ ϯϯ ϯϯ ϯϯ ϯϯ ϯϯ ϯϯ ϯϯ <>K' Ͳ Ϭ ϴ Ϭ ϴ Ϭ ϳ Ϭ ϳ Ϭ ϭ Ϭ ϭ Ϭ ϭ ϭ Ϭ Z Θ Ϯ ϱ < s > ϱ ϳϯdž Ζ ͲϮϱ ϲ ϳ ϭϰ ϭθ ϮϬ /s hz Ϭ ϭ Ϳ /s 'Z Zd ϲϳ ϳϮ ϳϰ ϳϰ ϳϳ ϳϯ ϳϲ ϳϰ d ϭ Ϭϰ ϭϲ ϬϬͿ >W, Ϭ Ϭϴ Ϭ ϬϱͿ ϭϲ ϭϲ ϭθ ϭϯ ϭϭ ϳ ϮϬ DW>Kz ^ ϱ ϲϰ ϭθйͿ Ϭ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ ϯ ϮϬ ϯ Ϯϭ ϳϲ Ϯ hz Ͳϲ Ϯ ϰϭ Ϯ ϬϬ ϭ ϴϰ ϰϲ ϭ ϲθ Ͳϳ й Ͳ ϭ ϱϯ ϭ ϯϲ ϭ ϮϬ ϭ Ϭϰ Ϭ ϲ Ϭ ϴϴ Ϭ ϳϲ Ϭ ϲθ Ϭ ϭϱ Ϭ ϱϯ Ϭ ϰθ Ϭ ϰϰ ϭϯ ϭϭ Ϭ ϰϭ Ϭ ϯϲ Ϭ ϯϯ ϴ ϮϬϬ< ϭ ϴ< Ϭ< Ͳϰй < ϮϬ< ĞĐ ϭϯ DĂƌ &/E E / >^ W^ hzͿ W^ й, E' ^ > ^ D/> hzͿ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ :ƵŶ ^ĞƉ ͲϬ ϳϳ ͲϮϮй ϰ ϭ нϰй ĞĐ Ϭ ϭϯ н ϭϭϲ Ϯ нϭϭй Ϭ Ϯϯ ͲϬ ϯϳ Ͳϯϲϰй ϭ Ϯ нθй Ϭ ϱϳ Ϭ ϯϳ нϯϭθй ϱ ϭ нϭ Ϭ ϲ нϯϭ ϭϱϳ ϱ нϯϭй Ͳϭ Ϯϯ ͲϮϯϮй ϭϯ ϴ ϭ Ϯ ϭ ϰ нϯϯй Ͳϲ ϱϭ ϱϯ Ϯ ϭ ϯ ϮϬϱ ϭϯϯ ϰ ϳϮϬ ϳ ϴ ϭϰϭ ϭ ϳϲ Ϭϰϳ ϰϱ Ϭϰϯ Ϭ ϳϮ нй ϭϱθ ϯ нϯϭй Ϭ ϲϱ нϳ ϭϲϳ ϯ нй ϭ ϭϯd ϭϭϭ ϭϯd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϱϯ Ͳϰ ϭ нϭ ͲϮϬ ϭ ϭϭd Ϭ ϱϲ нϭϰ ϭθϯ ϴ н н Ϯй ϭϱϯ ϭϭd ^ĞƉ ϭϲ Ϭ ϰ ͲϯϮй ϮϬϲ ϱ нϯ ĞĐ ϭϲ ϭ ϮϬ нθ Ϯ ϳ нй DĂƌ Ϭ ϱ нй ϰ нϯ :ƵŶ ϭ ϬϬ нϳ Ϯϯϯ ϱ нϯθй ^ĞƉ Ϭ Ͳ Ϭ н ĞĐ Ϯ ϭϰd ϭθϱ D ϮϬϱ D ϭ ϭϯd ϴ ϭϭd Ϯϱϴ ϭϭd DĂƌ ϭθ ϮϬϭϴ Ɛƚ ϭθ Ϯ ϬĞ нϰйğ Ϯϱϯ ϬĞ нϯйğ ϮϬ Ɛƚ ϳϯ ϱͳljƌ,ŝőś ϲθ Ϭ ϱͳljƌ >Žǁ ϭϱ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϱdž ^ƚăďŝůƶɛ yğƚͿ ^ddy Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -27- Consumer Cyclical: Auto/Truck-Original Eqp

30 Kering FRANCE <ĞƌŝŶŐ < Z &Z &K ϮϬ dž Source: Company Website W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϮϭϰϴϱ нϯϯ ϭ ϰϱ ϲϰ ϲϭ ϬϬ W^ ZĂŶŬ ϳϴ ZĞƚĂŝůͲ ĞƉĂƌƚŵĞŶƚ ^ƚžƌğɛ ŬĞƌŝŶŐ ĐŽŵ DŬƚ ĂƉ Φ ϲϳ ^ĂůĞƐ Φϭϭ ϳϲ WĂƌŝƐ &Z E ^ŚĂƌĞƐ ϭd &ůžăƚ ϲϲd < Z/E' ^ /^ &Z E Ͳ ^ KDW Ez d, d ^W / >/ ^ /E Z d /> E >hyhzz 'KK ^ /^dz/ hd/ke d, KDW Ez KW Z d ^ d,zkh', dtk KZ ^ 'D Ed^ >hyhzz t,/, KW Z d ^ d, >hyhzz 'ZKhW /s/^/ke K& WWZ ^ E ^/'E^ D Eh& dhz ^ E D Z< d^ >hyhzz /d D^ ^h, ^ Z zͳdkͳ t Z >Kd,/E' > d, Z 'KK ^ ^,K ^ t d, ^ : t >Zz &Z 'Z E ^ E K^D d/ ^ WZK h d^ E ^WKZd Θ >/& ^dz> ^ 'D Ed t,/, ^/'E^ E s >KW^ &KKdt Z WW Z > E ^^KZ/ ^ he Z d, Z E E D ^ WhD sk> KD E > dz/ ^ EEh > Ͳ E ϮϬϬϳ ϮϬϬϴ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϲ ϰϰ ϯ ϰϰ Ϯ ϲ ϱϱ ϳ ϴϮ ϴ ϯϯ Ϭ ϰϱ ϰ ϱϱ ϱ Ϭϳ W^ hz ϴϭ ϯй ϭϭ ϭϰ ^, &>Kt ^,Z hz ϳϰ ϱ Ϭϴ ϴ ϯ ϭϯ ϰ ϴ ϱ ϲ ϳϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϰй ϰй ϭ ϭ ϭϭй ϲ ^ƚăďŝůŝƚljͿ й ϭ ϭ ϭ ϭй Ͳϭϲ Ͳй ^ƚăďŝůŝƚljͿ ϰй ϭϯй Ͳϭ ͲϮϭй Ͳй ͲϮ Ϯϭй Ͳϭй ϰй ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz < < ϭϰ< ϭϭ< ϴ ϬϲϮ ϳϯϲ ϲϱϲ < ϭϯ< /Es d K Ϯ ϳdž ϭϰ ^ĞƉ Ϯϯ ^ĞƉ KĐƚ Ϭϳ KĐƚ ϭϰ KĐƚ Ϯϭ KĐƚ Ϯϴ EŽǀ Ϭϰ EŽǀ ϭϭ EŽǀ ϭϲ d й Ͳϭϱ ϯ ϯ ϯ ϳϮ ϳϭ ϳϮ ϳϯ ϳϯ ϳϲ ϳϲ ϳϲ ϳϲ d y Z d Ͳϭϱ й й ϯϯй ϮϬϯ ϮϬϲ ϱ ϲ ϮϬϭ ϴ Ϯϯ <>K' Ͳϭϱ ϭ ϳ ϭ ϱ ϭ Ϯ ϭ Ϯ ϭ Ϭ ϭ ϱ ϭ ϯ ϭ ϯ ϭ ϰ Z Θ < s > Ϯ Ϯdž Ζϭϱ ϯϱ Ϯϱ ϯϱ Ϯϯ ϲ ϲ /s hz ϰ ϬϬ Ϯ Ϳ /s 'Z ZdнϮй Ϳ ϴϭ ϳ ϴϰ ϴ ϴϱ ϴ ϴϳ ϴϳ ϴϲ d ϭ Ϭϭ ϴϳ ϬϬͿ >W, Ϭ Ϭ ͲϬ ϬϱͿ ϭθ ϳ ϳ ϴ DW>Kz ^ ϭ ϰйͿ Kering is a retail group with brands in the luxury and sports shoes and apparel segments. It is observing healthy growth trends across its major brands Gucci and Yves Saint Laurent, while Bottega Veneta continues to recover. W^ ƵĞ Ϯ ϮϬĞ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ Ϭ Ϭ ϰ Strong estimates Ϭ ϯ Ϭ Ϭ Ϯ Ϭ Ϭ ϱ ϰϭ Ϭ hz ͲϬ ϮϬϬ ϭ ͲϬ ϭ ϭ 10-Week MA ϭ ϭϯϭ ϭ 40-Week MA Ϭ ϴϱ Ͳ Rising R/S line Company Overview Q revenue breakdown by brand: Gucci, 39.6%; Puma, 28.7%; Yves Saint Laurent (YSL), 9.8%; Bottega Veneta, 7.2%; other luxury brands, 11.7%; other sports and lifestyle brands, 1.7%; other, 1.4%. Q revenues by geography: Western Europe, 36%; APAC, 26%; North America, 20%; Japan, 8%; rest of the world, 10%. O Neil Methodology In Q3 2017, the Company recorded like-for-like (LFL) sales growth of 28.4% y/y. On a reported basis, it grew 23.3% y/y. All the geographies displayed double-digit sales growth, particularly the APAC region which recorded a robust growth of 36% y/y. In the quarter, Gucci posted LFL sales growth of 49.4% y/y (42.8% on a reported basis). YSL continued its stellar trajectory with an organic growth of 22.2%. However, Bottega Veneta disappointed slightly with flat LFL sales in Q3. Puma LFL sales growth was up 17.3% y/y (13.2% reported basis). After the strong performance in Q3, consensus should upgrade its FY 2017 revenue estimates by 3 4% close to 15.5B and 2017 EPS estimates by 5%. From 2013 to 2016, Kering s revenue growth accelerated from -1% to 8.1% y/y, respectively, while ROE improved from 1% to 7%. We believe the stock s rerating that started in July 2016 is at an early stage, as the Group will continue to benefit from the recent changes in its management and its brand reset. Apart from the turnaround in Bottega Veneta, Puma should be able to improve its margins going forward, and move closer toward peers, such as Adidas (ADSX.DE). The other main brands, Gucci and YSL, should continue to see healthy growth. Local Code: FR:KER Bloomberg Symbol: KER:FP ISIN: FR ϰϲ >/E sk>hd ϯ ϲd Ϯ ϴD ϮD ͲϯϮй ϭ ϮD ϱ Ϯ< ^ĞƉ ϭϭ &/E E / >^ W^ hzͿ ĞĐ ϭϭ ϰ Ϯϱ DĂƌ ϭϯ :ƵŶ ϭϯ ϯ ϱ ^ĞƉ ϭϯ ĞĐ ϭϯ ϰ ϱϯ DĂƌ :ƵŶ ϭ ϯϳ ^ĞƉ ĞĐ ͲϬ ϴ ϭ ϲ Ϯ ϱ ϯ ϯϲ ϭ ϳϭ ϯ ϲ нϯϭй нϭй н ͲϲϮй Ͳϭй нϰϯй нϯϲϰй нϳϭй Ͳй нϭ ^ > ^ D/> hzͿϯ ϱ ϯ Ͳϲ ϰ ϲ ϳ Ͳϯ ϯ ϴ нϯ ϰ ϲθϰ ϭ нϯй ϱ Ϭ ϰ нϱϭй ϰ ϳϮϴ ϴ нϭй ϱ ϲ нϰй ϱ ϱϭϯ ϱ нϭ ϲ Ϭϳϭ ϳ нϭ ϱ ϲϯ нϯй W^ й, E' W^ й ^hzwz/^ &he ^ ϴϮ ^ĞƉ ϭϲ ĞĐ ϭϲ ϱ ϴϯĞ ϯϳ ϮϬϭϲ Ɛƚ ϮϬ ϯ Ϭϱ ϴĞ ϯ ϳϴ ϳĞ ϱͳljƌ,ŝőś ϰϰϲ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ Ϯdž ϴϱϲ ϴ ϴϳϯ ϴϱϰ ϯ ϭ ϬϮϱ ϭ Ϭϰϳ ϭ ϬϬϴ ϴϴ ϭ Ϭϲϭ ϭ ϲ ϭ Ϯ ϭ ϭϱθ ϭ ϭθϰ ϭ ϭϲϰ ϭ ϳ ϲϯϯ ϲϳθ ϮϯD ^, Z ^, > z &he ^ ϮϯD D D D ϮϱD ϮϱD D ϮϱD ϮϱD ϮϴD ϮϴD ϮD ϯϭd ϯϯd ϯϯd D ϯϯd Π ϮϬϭϲ t/>>/ D KΖE /> н K /E ϭ Ϯϳϱ ϭ Ϯϳ ϯϯd ϯϯd <ĞƌŝŶŐ < Z &ZͿ tğğŭůlj ĂƐ ŽĨ tğě EŽǀĞŵďĞƌ ϭϲ ϮϬϭϲ Ĩ tğě EŽǀĞŵďĞƌ ϭϲ ϮϬϭϲ Growth drivers Gucci s growth continues to be driven by the brand s ability to innovate under the guidance of creative director, Alessandro Michele. Revenues from the directly operated stores now account for 83% of Gucci s revenue, growing 51% y/y in Q3, driven by healthy LFL and full price sales. Gucci s margin expansion is in an early stage, and it is expected to further improve (H EBITDA margin +420bps, y/y), due to the rollout of new store concepts and the reduction in the number of models and variations of similar products in its stores. Revenues for YSL continue to be driven by footwear and leather products, which together account for more than 65% of its annual revenues. Looking Forward According to Bain&Co. and Altagamma, the global personal luxury market is expected to increase at a CAGR of 3 4% from 2017 to 2020, reaching 280B 285B. Next Catalyst: The next catalyst will be full-year 2017 results on February 12,

31 FRANCE <ĞƌŝŶŐ < Z &Z W^ ϯϭ dž ϯϱ ϰθ ϯϯ Ϯ Ϭϯ Ϯϱ ϴϭ ϱθ ϯϱ ϭϲ ϭϰ ϴϰ ϱϱ W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϮϭϰϴϱ нϯϯ ϭ ϰϱ ϲϰ ϲϭ ϬϬ W^ ZĂŶŬ ϲ ƉƉĂƌĞůͲ ůžƚśŝŷő DĨŐ ŬĞƌŝŶŐ ĐŽŵ DŬƚ ĂƉ Φ Ϭϳ ^ĂůĞƐ Φ ϭ WĂƌŝƐ &Z E /ŶĐ ϱϱ Kering ^ŚĂƌĞƐ ϭd &ůžăƚ ϳϰD W^ ƵĞ ŝŷ ϭϭ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 < Z/E' ^ /^ &Z E Ͳ ^ KDW Ez E' ' /E d, & ^,/KE /E h^dzz /d s >KW^ E E^ D > K&,Kh^ ^ /E & ^,/KE > d, Z 'KK ^ : t >Zz E t d, ^ d,zkh', WKZd&K>/K K& ^h, Z E ^ ^ 'h / Kdd ' s E d ^ /Ed > hz Ed > E / ' > y E Z D Yh E ^d >> D ZdE z,z/^dkw, Z < E Z/KE/ Kh, ZKE WKD >> dk K K Y >/E '/Z Z ͲW ZZ ' hy E h>z^^ E Z /E DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϯ ϰϰ Ϯ ϲ ϱϱ ϳ ϴϮ ϴ ϯϯ Ϭ ϯ ϰ ϮϬ ϱ ϱϯ ϲ ϰϲ W^ hz ϭϱ ϰϳ ź Ϯ ϭÿ ^, &>Kt ^,Z hz ϱ Ϭϴ ϴ ϯ ϭϯ ϰ ϴ ϱ ϲ ϳϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰй ϰй ϭ ϭ ϭϭй ϭ Ͳ ϳ ϲϯ ^ƚăďŝůŝƚljͿ ϭϯй ϭ ϭ ϭй Ͳ ^ƚăďŝůŝƚljͿ й Ͳϭ ͲϮϭй Ͳй ͲϮ Ϯϭй Ͳϭй ϰй ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz < ϭϰ< ϭϭ< ϴ ϬϲϮ ϳϯϲ ϲϱϲ < ϭϯ< ϭϯ< /Es d K Ϯ ϲdž ϭϱ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϯ ϯ ϯ ϴϮ ϴϯ ϴϮ ϴϮ ϴϮ ϴϮ ϳ ϴϮ ϳϴ d y Z d й ϯϯй Ϯ ϯ ϴ ϯ Ϯ Ϯϭϰ ϮϬϮ ϮϬϬ ϭθ ϭθϳ <>K' ϭ Ϯ ϭ ϰ ϭ Ϯ ϭ Ϯ ϭ Ϯ ϭ Ϯ ϭ ϭ ϭ ϱ ϭ ϰ Z Θ < s > ϰ ϯϱdž Ζϭϲ ͲϮϬ Ͳϭϰ ͲϭϮ ͲϭϮ ϭϱ ϮϬ ϯϯ ϯϯ ϭϱ /s hz ϱ ϭ ϯйͿ /s 'Z ZdнϮй ϭϭͿ ϰ ϰ ϯ ϯ Ϯ ϭ Ϯ ϴϴ d ϭ ϬϬ ϬϬͿ >W, Ϭ Ϭ ϭϰͿ Ϯϯ Ϯϱ Ϯϳ ϯϯ ϰϰ ϯϯ ϯ ϮϬϭϲ DW>Kz ^ ϰϭ ϬϱϮ ϯйͿ ϭϭ ϬϬ Ϭ Ϭ Ϭ Ϭ Ϭ ϰ Ϭ ϭϯ ϯϲ ϯ hz ϳ Ͳϭϱ Ϭ Ͳϯ ϳ ϲθ ϯϯ ϴ ϯ ϳ ϳϰ ϳ Ϭ Ϯ Ϭ Ϭ ϲ ϴϴ ϱ ϰθ ϰ ϴϰ Ϭ ϭ ϭ ϰ ϯ ϴϳ ϯ ϱϱ ϭ ϭϯϭ ϭ ϯ Ϯϯ Ϭ Ϯ Ϯ ϱθ Ϯ ϭ ϰ ϭ ϲϭ ϭ ϰθ ϰϲ ϭ ϯϱ ϭ Ϯϯ Ϭ< ϳϱϲ ϰ< Ϭ< Ͳϭ ϰϭϭ< ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ ϰ ϱϯ W^ hzͿ W^ й, E' н ϯ ϴ ^ > ^ D/> hzͿ нϯ DĂƌ W^ й ^hzwz/^ ϴ ϭϯ &he ^ ϴ ϳ D ^, Z ^, > z &he ^ ϲ D :ƵŶ ϭ ϯϳ ͲϲϮй ϰ ϲθϰ ϭ нϯй ^ĞƉ ϰ D ϭ Ϭϭϰ D ĞĐ ͲϬ ϴ Ͳϭй ϱ Ϭ ϰ нϱϭй ϳϯ D ϱ ϮϱD ϭ ϰϳ н ϰ ϳϮϴ ϴ нϭй ϰ ϮϴD ϭ ϬϮϬ ϮϴD Ϯ ϳϯ нϯϳ ϱ ϲ нϰй ϭ Ϭϲϱ ϮϴD ϭ ϭϲϲ ϯϭd ϯ ϯϲ нϭϯ ϱ ϱϭϯ ϱ нϭ ϭ ϭϭϰ ϯϯd ϭ ϭϰϭ ϯϯd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϯ ͲϮϭй ϲ Ϭϳϭ ϳ нϭ ϭ ϭϯϭ D ϭ ϲ ϯϯd ϯ ϲ нϭ ϱ ϲϯ нϯй ^ĞƉ ϭϲ ϭ Ϯ ϯϯd ϭ ϮϱϮ ϯϯd ĞĐ ϭϲ Ϯ ϳϳ нϯθй ϲ ϲϯ Ϭ нϭ DĂƌ ϭ ϯ ϯϯd ϭ ϯ ϮD :ƵŶ ϲ ϱϱ нϳθй ϳ Ϯϲ Ϯ нϯθй Ͳϯ ϰй ϭ ϰϳ ϯϭd ^ĞƉ ĞĐ ϴ ϱϱğ ϯ ϮϬ Ɛƚ Ϯϱ ϴ Ϭϰϳ ϴĞ ϮϬϭϴ Ɛƚ ϭϯ ϱͳljƌ,ŝőś ϰϰϲ Ϭ ϱͳljƌ >Žǁ ϮϬ Ϭ ϭ ϱϳ ϯϯd ǀƐ /ŶĚ ǀŐ ϭ ϳdž <ĞƌŝŶŐ < Z &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -29- Consumer Cyclical: Apparel-Clothing Mfg

32 Moncler ITALY Excellent EPS Rank Source: Corporate Website Moncler manufactures luxury outerwear and accessories for men, women, and children. The Company s solid retail channel will drive growth. Company Overview The Company distributes products through retail and wholesale channels. The retail channel consists of directly operated stores (DOS) and its online platform. It operates 236 mono-brand stores (retail and wholesale), located in 70 countries. 9M 2017 revenue breakdown by geography: Asia and others, 35%; EMEA, 33%; Americas, 17%; Italy, 15%. 9M 2017 revenue breakdown by distribution channel: retail, 65%; wholesale, 35%. O Neil Methodology The Company s fundamentals remain strong with an average three-year sales and EPS growth of 22% and 27%, respectively. For 2017, estimates call for a sales and EPS growth of 14% and 22%, respectively. In Q3 2017, the Company recorded a 15% y/y growth in like-for-like (LFL) sales, with reported growth at 12% y/y. In terms of channels, the retail revenues continued to be the main driver (+20% y/y in Q3) helped by organic growth and the development of the DOS. The wholesale channel witnessed high single-digit growth. For the first nine months, the Company added five DOS and six wholesale shop-in-shops (SiS), taking the total to 195 DOS and 48 wholesale SiS. Although currency effects were negative this quarter (-3% impact on total revenue) and are likely to persist in Q4, the Company will likely deliver double-digit sales growth in 2017; management noted that early trends in October were solid. We think the steady store expansion coupled with Company s operational efficiency should drive revenue and margin growth. A/D and RS Ratings at seven-week high 10-week MA Solid earnings estimates and next year revised higher Earnings and sales growth acceleration over the last three years Stock breaks-out of consolidation on double average volume 40-week MA Increasing institutional ownership RS line at new highs and RS and A/D Ratings are good Growth Drivers The proportion of revenues derived from the retail channel has been increasing. The retail channel is more profitable than the wholesale channel and as of 2016, accounted for 73% of revenues, compared with 62% in Revenues from its retail channel increased at a CAGR of 33% from 2014 to This was mainly driven by the increasing number of DOS, which grew at a CAGR of 19% from 2014 to Moncler s mono-brand had 195 DOS as of September 30. For the current year, management guides for a low double-digit contribution of new spaces and stated that most of its new openings and space growth will be in Q4. For 2018, the Company has secured 13 locations for store openings and expects a similar number of store expansions and relocations. Retail space is expected to grow by a low double-digit percentage in Looking Forward According to Bain&Co. and Altagamma, the global personal luxury market is expected to rise at a CAGR of 3 4% from 2017 to 2020, reaching 280B 285B. Next Catalyst: The next catalyst is the Q earnings announcement on February 26, Local Code: IT:MONC Bloomberg Symbol: MONC:IM ISIN: IT

33 ITALY DŽŶĐůĞƌ DKE /d W^ Ϯϱ dž ϯ ϯ ϮϬ Ϯ Ϯ ϰϭ Ϯ ϬϬ ϭ ϴϰ ϭ ϲθ ϭ ϱϯ ϭ ϯϲ D/> E džđś /dϭϭϭϰϲϱϭϰθ нϯ ϬϮ ϮϬϰϭ W^ ZĂŶŬ ϴϲ ƉƉĂƌĞůͲ ůžƚśŝŷő DĨŐ ŵžŷđůğƌőƌžƶɖ ĐŽŵ DŬƚ ĂƉ Φϲ ϲϯ ^ĂůĞƐ Φϭ ϰϯ DŝůĂŶŽ /d >z Moncler ^ŚĂƌĞƐ ϮϱϱD &ůžăƚ ϭϲϯd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 DKE > Z ^W /^ E /d >zͳ ^ KDW Ez E' ' /E & ^,/KE /E h^dzz d, KDW Ez ^/'E^ WZK h ^ E /^dz/ hd ^ >Kd,/E' E ^^KZ/ ^ d,zkh', DKE > Z Z E DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭ Ϭ ϭϯ Ϭ Ϭ ϱϯ Ϭ ϲϳ Ϭ ϳ W^ hz Ϭ ϴ йź ϭ Ϭϴ ϭÿ ^, &>Kt ^,Z hz ϭ ϰϭ Ϭ Ϭ ϰϯ Ϭ Ϭ ϳϲ Ϭ ϳϭ Ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ й ϭ й Ϯ Ϯϴй Ϯ Ϯϴй Ͳ Ϯ ^ƚăďŝůŝƚljͿ й Ϯ ϭϯй Ϯϴй ϯ ϯ ϯϭй Ͳ ϲ ϲϭ ^ƚăďŝůŝƚljͿ Ϯϭй Ϯ Ͳ й Ϯ Ϯ ϭθй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϱ ϰθ ϱθϭ ϲϰ ϴ ϭ ϬϰϬ /Es d K ϭ ϲdž Ϯϯ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϯ Ϯϯй ϭϭй ϳϲ ϳϱ ϳϯ ϳϰ ϳϱ ϳϱ ϳϱ d y Z d ϯϯй ϯϯй ϯϯй ϴϲϭ ϴϴϲ ϳ ϳ ϴϱϱ ϴϳϰ ϴ ϴϯϯ <>K' Ϭ ϴ Ϭ ϭ Ϭ ϭ Ϭ Ϭ ϭ ϭ ϭ ϰ ϭ ϲ ϭ ϰ Z Θ < s > ϰϳdž Ζϭϲ ϰϭ ϰϭ ϭϲ ϯϱ ϭϱ /s hz Ϭ ϭθ Ϭ Ϳ /s 'Z Zdнй ϲͿ ϲθ ϲ ϴϮ ϴϭ ϳϴ ϳ d Ϭ ϳ ϬϬͿ >W, Ϭ ϭϭ Ϭ ϬͿ ϯϳ ϯϱ ϭθ ϮϬ ϮϬ ϮϬ ϮϬϭϲ DW>Kz ^ ϯ Ϯϭϲ ϰϯйͿ ϰϲ ϭ ϮϬ ϭ Ϭϰ Ϭ ϲ Ϭ ϴϴ Ϭ ϴϮ Ϭ ϳϲ ϬϮ Ϭ ϲθ Ϭ ϭϱ hz Ͳϭ Ϭϲ Ͳϯ ϭй Ϭ ϱϯ Ϭ ϰθ Ϭ ϰϰ ϳ ϭϯ ϭϭ Ϭ ϰϭ Ϭ ϯϲ Ϭ ϯϯ ϴ Ϭ Ϯϴ ϳ Ϭ ϲ Ϭ Ϭ ϭθ ϰ ϴ ϰ ϰ Ϭ ϭϲ ϰ Ϭ ϭϰ ϯ ϲ Ϭ ϯ Ϯ ϴD ϱd ϯ ϰd ϯd ϮD Ͳϭ ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ ϭϱ W^ hzͿ W^ й, E' ϭϱθ Ϭ ^ > ^ D/> hzͿ DĂƌ Ϭ Ϭϳ ϭϯϱ ϲ :ƵŶ ͲϬ Ϭϯ ϱϳ ϲ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ ^ĞƉ Ϭ ϭϯ ϮϬϱ ϴ ĞĐ Ϭ ϭϱ ϭ ϲ нϯϭй Ϭ Ϭ нϯ ϭϰϱ ϰ нϭ ͲϬ ϬϮ нϯϯй ϳϮ нϯ ϭϱϯ D ϳ ϮD Ϯ ϯϱd Ϭ Ϯϭ нϳ Ϯϯϭ Ϭ нϭϯй н ϴй ϭ ϯϯd Ϭ нϲ ϰ нϯθй н Ϯй ϭϲϲ ϯϯd Ϭ ϭϲ нϳθй ϮϬϭ Ϭ нй нϰϲ Ϯϭϰ ϰϭd ͲϬ ϬϮ ϰ ϴ нϯ Ϭ Ϯϯ нϭ ϱ ϳ нϭ Ϯϱϱ ϰd ϯ ϱϯd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ нϯ ϯϭθ нϯ н ϯϳϲ ϲϯd Ϭ ^ĞƉ ϭϲ ϲ ϱ ĞĐ ϭϲ Ϭ ϲϱ DĂƌ ϲϯ ϴ :ƵŶ Ϭ нϯϭй ϰϭϳ ϲ нϭθй ^ĞƉ Ϭ ϮϴĞ ϲϯϳ ϳϳD ϲϳθ ϳϴD ĞĐ Ϭ ϲϯğ ϮϬ Ɛƚ ϯ ϱğ ϰϰϱ ϬĞ ϮϬϭϴ Ɛƚ Ϭϱ ϱͳljƌ,ŝőś ϱϯ Ϭ ϱͳljƌ >Žǁ ϭθ Ϭ ϰϭϯ ϲϯd ϰϰϭ ϲϯd ϰϳϱ ϲϲd ϱ ϳϮD ϱθθ ϳD ϳ ϳD ǀƐ /ŶĚ ǀŐ ϭ ϯdž DŽŶĐůĞƌ DKE /dͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -31- Consumer Cyclical: Apparel-Clothing Mfg

34 Seb FRANCE ^Ğď ^ &Z W^ dž Ϯϳ Ϭϲ ϳϭ ϯϱ ϮϬ ϬϬ ϲϱ ϭϱ Ϯ ϭϰ ϭϯ ϭϯ ϰ ϭϭ ϭθ ϬϬ W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϮ нϯϯ ϰ ϳϮ ϭθ ϭθ ϭθ W^ ZĂŶŬ ϴϱ,ƐĞŚŽůĚͲ ƉƉůŝĂŶĐĞƐ tăƌğɛ ŐƌŽƵƉĞƐĞď ĐŽŵ y /s ϱ ϭϲ ϮϬ DŬƚ ĂƉ Φϳ ϭϰ ^ĂůĞƐ Φϱ ϬϬ ĐƵůůLJ &Z E /ŶĐ Ϯ ^ŚĂƌĞƐ D &ůžăƚ D D'Dd ŽǁŶƐ ^ ^ ^ ^ /^ &Z E Ͳ ^ D Eh& dhz Z K&,Kh^,K> Yh/WD Ed d, KDW Ez /^ WZ ^ Ed /E d,z KDW> D Ed Zz ^ dkz^ KK<t Z </d, E > dz/ ^ E,KD E W Z^KE > Z DKZ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϯ ϮϬ ϯ ϭϰ ϰ ϲϱ ϰ ϯ ϰ Ϭϳ ϰ ϯ ϰ ϰ ϮϬ ϱ ϮϬ ϳ ϰθ ϰϰй ϴ ϰθ й W^ hz ^, &>Kt ^,Z hz ϱ ϯ ϲ ϴϯ ϳ Ϯϴ ϳ Ϯ ϰ ϳϴ ϱ ϰ ϳϳ ϲ ϰ ϳ Ϭϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϴй ϭ ϳ ^ƚăďŝůŝƚljͿ ϭ ϭ ϭθй ϭθй ϭ ϭ ϭϯй й ϭ Ͳϭϲ ϭй ϭϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' й ͲϮй ϭ Ϯй ϯй Ϯй ϭϯй KDW Z d/e' ^ > ^ D/>Ϳ hz ϯ Ϯ ϯ ϲ ϯ ϲϱϯ ϯ ϲϯ ϰ Ϭ ϰ ϭϲϭ ϰ Ϯϱϯ ϰ ϳ ϱ ϬϬϬ /Es d K Ϯ ϴdž ϯϱ DĂƌ Ϭϯ DĂƌ DĂƌ DĂƌ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ d й ϯ ϰ Ϯй ϲϱ ϲϲ ϲϱ ϲθ ϲϱ ϲϱ ϲϳ ϲθ d y Z d Ϯ Ϯ Ϯϭй ϳϳ ϳϳ ϳϲ ϲϳ ϲϰ ϲϭ ϱϳ ϱϲ ϱθ <>K' ϭ й < s > ϰ dž Ζϭϲ Ϭ ϴ Ϭ ϴ Ϭ ϭ ϭ ϭ ϯ ϭ Ϯ ϭ ϱ ϭ ϰ ϭ ϲ Z Θ ϭϯ Ϯϯ Ϯϯ Ϯ ϰϭ /s hz ϭ ϳϮ ϭ ϮйͿ /s 'Z Zdн ϮͿ Ϭ ϲϰ ϬϬͿ >W, Ϭ ϭϱ Ϭ Ϳ ϰθ ϱϳ ϱϭ ϲϯ ϲϭ ϲϯ ϳϱ ϴϯ ϴϱ d ϳ ϴϳ ϯ ϴϴ Ϯ ϳ ϴ ϴϮ ϲϳ ϮϬϭϲ DW>Kz ^ Ϯϱ ϴϱ ϮйͿ W^ ƵĞ ϰ ϮϬĞ K, Double digit annual EPS estimates Ϭ ϯ Ϭ Ϭ ϳ ϲϱ ϳ Ϭϲ ϲ ϰϳ Source: Corporate Website Ϯ Ϭ Ϭ Stock gaps up into new highs on twice the average daily volume Ϭ ϭ ϴ ϴϮ ϭ ϭ ϯϱ Strong demand for stock Good EPS profile ϭ ϭϯϭ ϭ нϳ ϮϬ ϱ ϴϴ Ϭ ϱ Ϯ ϱ ϮϬ ϰ ϳϭ ϯ ϱϯ ϴϱ Ͳ Ϯ ϰ Ϯ ϳϭ ϰϲ Ϯ ϰϳ Ϯ Rising R/S line with good R/S and A/D ratings Ϯ ϬϬ ϭ ϳϲ ϭ ϱϯ ϭ ϰϭ ϭ Ϯ ϭ ϭθ Company Overview SEB has a presence in three complementary sectors: cookware, kitchen electronics, and home and personal care. The Company enjoys a good brand reputation. It owns Tefal, the company that invented Teflon and aluminum-based cookware solutions. It is also the inventor of the odorless electric deep fryer. 9M 2017 revenues by geography: Western Europe, 33%; China, 26%, North America, 11%; South America, 7%; other, 23%. hz нϱ ϯϯй ϰ ϭϯ SEB is a leading manufacturer of household equipment and cookware and is a global market leader in professional coffee machines with a 28% share, well ahead of its nearest competitor. ϰ ϮϬ ϭ Ϭϲ ϭθ Increasing number of funds Ϭ ϰ ϭϲ ϭd Ϭ< ϰϭϭ< нϭй ϮϬϬ< ϭϭϱ Ϯ< Ϭ< ĞĐ ϭϭ DĂƌ ϭϯ &/E E / >^ Ϯ ϲ W^ hzͿ :ƵŶ ϭϯ ϭ ϱϱ н W^ й, E' Ϯ ϯ ^ > ^ D/> hzͿ ͲϮ ϭ ϳ Ϭ Ͳϭ Ϯ Ϯϳϱ Ϭ Ͳϯ ϭ ϴϯϱ Ϯ нϯϭй Ϯ ϯ ϯ Ͳϱϯй ϭ ϴ ϳ ͲϮй Ϯ ϲ ϭ нϭϭ Ϯ ϭ ϭ нϰй Ϯ ϲϱϲ ϳ нй Ϯ ϭϲϯ ϴ нϯ Ϯ ϴϯϱ ϳ нϰй нϭй нϯй нϯй нϰй нϭ нϭ нϯй н н W^ й ^hzwz/^ ϮϱϮ ϯ &he ^ ^ĞƉ ϭϯ ĞĐ ϭϯ Ϯ ϱϯ DĂƌ :ƵŶ ϭ Ϭϴ ^ĞƉ ĞĐ ϯ Ϭϱ Ϭ ϱϭ Ϯ ϴ ϭ ϯ ϭ ϯϭ ^ĞƉ ϭϲ ĞĐ ϭϲ ϯ ϴ DĂƌ Ϯϳ ϮϬ Ɛƚ Ϭ ϭ ϰϳ ϬĞ ϱͳljƌ,ŝőś Ϯϳ Ϭ ϱͳljƌ >Žǁ ϭϭ Ϭ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž O Neil Methodology The stock is consolidating after breaking out of a 15-week cup. It has strong technicals: RS Rating of 78, A/D Rating of B+, and Up/Down volume ratio of 1.4. In 9M 2017, the Group reported revenues of 4.5B, up 32% y/y, driven by strong performance across all regions. WMF revenues grew 8% y/y to 813M, driven by 18% y/y growth in professional coffee machines. Operating Result from Activities (ORfA) came in at 389M (+25% y/y), which includes one-offs related to the WMF acquisition. Excluding these items, ORfA was 406M. The Company has a strong earnings profile, reflected in its EPS Rank of 90 and stability factor of three. The acquisition of WMF (completed in November 2016) is expected to add about 1.1B and 128M in annual revenues and adjusted EBITDA, respectively. It is also expected to be EPS accretive by 20%. WMF is the leader in the professional coffee machines market with a global share of 28%, which is nearly double its next competitor s share. Professional coffee machines accounted for 38% of WMF s revenues in In addition, about 40% of WMF s sales are derived from services, which are a source of recurring revenues. The professional coffee machine market is valued at 1.5B (as of 2015), and has a CAGR of 8% each year. From 2012 to 2015, WMF has been growing faster than this market with a CAGR of 10.4%. Growth Drivers In H1 2017, SEB acquired Swizz Prozz, a Swiss Company specializing in manual hand choppers in the kitchen segment. This acquisition will strengthen the Group s positioning in kitchen utensils and will add 8M 10M to its top line. Looking Forward Through the WMF acquisition, SEB expects to generate annual synergies of 40M starting in In 2017, management expects revenue growth of more than 30% y/y. It also expects ORfA (excluding one-offs) to grow a minimum of 30%. Next Catalyst: The Company s Q results are expected to be announced on February 23, Local Code: FR:SK Bloomberg Symbol: SK:FP ISIN: FR ϮϭϮ ϴ Ϯϯϭ Ϯϳϲ ϰ ϮϴϮ ϯ ϯϲϯ ϯϭ ϰϯϲ ϱ ϭθ ϯϱθ ϱ ϱ ϱθ ϱ ϳϰϰ ϳ ϱ ϱ ϰϭθ ϲ Ϭϯϲ Ϭϭϱ ϲ ϳϮϬ ϳ ϳ ϯ Ϭϲϭ ϳ Ϯϭϴ ϳϰ ϴ ϱ ϯ ϴ Ϯϭ ϲϭϲ Ϯϭ ϱϰϭ ϭ ϰθϰ ϯϲϯ ^, Z ^, > z &he ^ D ϭϭd ϭϯd ϭϭd ϭϭϭd ϭϭϭd ϭϭd Π ϮϬ t/>>/ D KΖE /> н K /E -32- Ϯϱϰ ϱ Ϯ ϳ Ϯ ϲ Ϯ ϲ ϭϭd ϭϭd ^Ğď ^ &ZͿ tğğŭůlj ĂƐ ŽĨ DŽŶ Ɖƌŝů ϮϬ Ɖƌŝů ϮϬ

35 FRANCE ^Ğď ^ &Z W^ ϭθ dž Ϯϳ ϳϴ Ϯϱ ϱϲ Ϯϯ ϯϯ Ϯϭ ϭϭ ϭθ ϴ ϭϲ ϲϳ ϭϰ ϰϰ ϯϯ ϭϯ ϱϲ W Z/^Ͳ^ & džđś &ZϬϬϬϬϭϮ нϯϯ ϰ ϳϮ ϭθ ϭθ ϭθ W^ ZĂŶŬ ϭ,ɛğśžůěͳ ƉƉůŝĂŶĐĞƐ tăƌğɛ ŐƌŽƵƉĞƐĞď ĐŽŵ DŬƚ ĂƉ Φϴ ϱϯ ^ĂůĞƐ Φϱ ϳϴ ĐƵůůLJ &Z E /ŶĐ Ϯ Seb ^ŚĂƌĞƐ D &ůžăƚ ϮϴD W^ ƵĞ ŝŷ Ϯϳ ĂLJƐ ĞͿ K, Ͳϯй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ ϰ ^ ^ ^ ^ /^ &Z E Ͳ ^ D Eh& dhz Z K&,Kh^,K> Yh/WD Ed d, KDW Ez /^ WZ ^ Ed /E d,z KDW> D Ed Zz ^ dkz^ KK<t Z </d, E > dz/ ^ E,KD E W Z^KE > Z DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϯ ϮϬ ϯ ϭϰ ϰ ϲϱ ϰ ϯ ϰ Ϭϳ ϰ ϯ ϰ ϰ ϮϬ ϱ ϮϬ W^ hz ϳ ϱÿ ϴ ϴϯ йÿ ^, &>Kt ^,Z hz ϱ ϯ ϲ ϴϯ ϳ Ϯϴ ϳ Ϯ ϰ ϳϴ ϱ ϰ ϳϳ ϲ ϰ ϳ Ϭϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϴй Ͳ ϭ ϯ ^ƚăďŝůŝƚljͿ ϭ ϭ ϭ ϭθй ϭθй ϭ ϭ ϭϯй й ϭ Ͳ ϭϭ ^ƚăďŝůŝƚljͿ й ͲϮй ϭ Ϯй ϯй Ϯй ϭϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϯ Ϯ ϯ ϲ ϯ ϲϱϯ ϯ ϲϯ ϰ Ϭ ϰ ϭϲϭ ϰ Ϯϱϯ ϰ ϳ ϱ ϬϬϬ /Es d K ϯ ϭdž ϭθ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϯ ϰ Ϯй ϲϯ ϲϰ ϲϰ ϲϲ ϲϲ ϲθ ϲϲ ϲθ d y Z d Ϯ Ϯ Ϯϭй ϰ ϱϭ ϱϭ ϱϯ ϱϭ ϰ ϱϰ ϱϰ <>K' Ϭ ϴ Ϭ ϳ Ϭ ϲ Ϭ ϲ Ϭ ϴ Ϭ ϴ Ϭ Ϭ Ϭ Z Θ ϭ й < s > ϱ Ϭϰdž Ζϭϲ ͲϮ ϭϲ ϭϲ ϯϭ ϰϲ ϰ ϭθ /s hz ϭ ϳϮ ϭ Ϳ /s 'Z Zdн ϮͿ ϱϲ ϱϯ ϲϭ ϳϭ ϳϮ ϳ ϳϮ ϳϴ d ϭ Ϭϱ ϯ ϬϬͿ >W, Ϭ Ϭϴ Ϭ ϬϴͿ ϳϳ ϴ ϴϱ ϭ ϴϲ ϳϴ ϳϲ ϱθ ϰϭ ϮϬϭϲ DW>Kz ^ Ϯϱ ϴϱ ϮйͿ Ϭ ϯ Ϭ Ϭ Ϯ Ϭ Ϭ Ϭ ϰϰ ϭ ϭϲ hz ϴ ϯϯ нϯ ϭ нϭ ϳϰй ϳ ϲ ϲϳ ϲ ϭϭ ϭ ϭϯϭ ϭ ϱ ϱϲ ϱ ϱϳ Ϭ ϱ ϬϬ ϰ ϰϰ ϳϴ ϯ ϴ ϯ ϯϯ Ϯ ϳϴ Ϯ ϱϲ ϰϲ Ϯ ϯϯ Ϯ ϭϭ ϭ ϴ ϭ ϲϳ ϭ ϰϰ ϭ ϯϯ ϭ ϭ Ϭϲ Ϭ ϰ ϭd Ϭ< ϰϭϭ< ϯϭϰ < ϮϬϬ< нй Ϭ< ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϯ ϱϯ W^ hzͿ W^ й, E' Ͳϭ Ϯ Ϯϳϱ Ϭ ^ > ^ D/> hzͿ нϭй DĂƌ :ƵŶ ϭ Ϭϴ Ͳϯ ϭ ϴϯϱ Ϯ нϯй ^ĞƉ ĞĐ ϯ Ϭϱ нϯϭй Ϯ ϯ ϯ нϯй Ϭ ϱϭ Ͳϱϯй ϭ ϴ ϳ Ϯ ϴ ͲϮй Ϯ ϲ ϭ нϰй W^ й ^hzwz/^ ϱ ϳ ϰ Ϭ Ϯϯϲ ϭ Ϯϱϰ ϭ Ϯϳϭ &he ^ ϲ ϯ ϲ Ϭϭϰ ϯ ϲ ϲϱ ϲϳϭ ϳ Ϯϳ Ϯϴϴ ϳ ϭϲϲ ϴϲ ϴ ϭϯϭ Ϯϳϯ ϴ Ϯ ϯϳϯ Ϯϯϯ ϭ ϲ ϯ ϳϮ ^, Z ^, > z &he ^ ϭ нϭϭ Ϯ ϭ ϭ нϭ Ϯϳϴ ϭϭd ϯ ϭϯd ϰ ϭϭd ϯϱθ ϭϭϭd ϭ ϯϭ нй Ϯ ϭϲϯ ϴ нϯй ^ĞƉ ϭϲ ϳ ϭϭϭd ϰϯϯ ϭϭd ĞĐ ϭϲ ϯ ϴ нϯ Ϯ ϴϯϱ ϳ н DĂƌ ϱ ϭϭd ϲϲϯ D :ƵŶ ϭ ϲθ нϯθй Ϯ ϰϭ Ϯ нϯ ^ĞƉ ĞĐ ϴ ϰϭğ Ϯ ϮϬ Ɛƚ Ϯϭ ϭ ϱϭθ ϬĞ Ϯ ϬϬϳ ϬĞ ϮϬϭϴ Ɛƚ ϱͳljƌ,ŝőś Ϭ ϱͳljƌ >Žǁ ϭϰ Ϭ Ϯ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϯ нϰй Ϯ ϲϱϲ ϳ нϭ ϳ D ϳ ϲ D ϴ ϬϮϬ ϱ ǀƐ /ŶĚ ǀŐ ϭ ϲdž ^Ğď ^ &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -33- Consumer Cyclical: Hsehold-Appliances/Wares

36 Technogym ITALY dğđśŷžőljŵ d'zd /d &K ϮϬ dž D/> E džđś /dϭϭϭϱϭϲϭϲ ƚğđśŷžőljŵ ĐŽŵ W^ ZĂŶŬ y /s ϱ ϭϱ ϮϬ >ĞŝƐƵƌĞͲWƌŽĚƵĐƚƐ DŬƚ ĂƉ Φϭ Ϭϲ ^ĂůĞƐ Φϱϱϰ ϳD ĞƐĞŶĂ /d >z ^ŚĂƌĞƐ ϮϬϬD &ůžăƚ D IURP 3LYRW LQ :HHNV D'Dd ŽǁŶƐ d,ek'zd ^W /^ E /d >zͳ ^ KDW Ez E' ' /E d, Z Z d/ke > WZK h d^ /E h^dzz d, KDW Ez D Eh& dhz ^ &/de ^^ Yh/WD Ed DKZ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ Ϭ Ϭϭ Ϭ Ϭϯ Ϭ ϭϰ Ϭ Ϭ ϭθйÿ Ϭ ϯϭ йÿ W^ hz ^, &>Kt ^,Z hz Ϭ Ϭϳ Ϭ ϭϰ Ϭ Ϭϳ Ϭ Ϯϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϭй ϭй ϭϭй ϭϯй Ϯϭ ϯϯ ^ƚăďŝůŝƚljͿ ϭϭй ϴ ϲ Ͳϭϲ Ϯϭ ϯϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' ϭ KDW Z d/e' ^ > ^ D/>Ϳ hz ϰϭ ϰϲϱ ϱϭϭ ϱϱϱ /Es d K ϱdž :ĂŶ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď &Ğď &Ğď DĂƌ Ϭϯ DĂƌ d й ϱ ϭй ϰθ ϱϯ ϱϲ ϰϳ ϰ ϱϭ ϱϯ ϲ d y Z d ϳ ϰθй й ϲθϳ ϲϲϭ ϲϲϯ ϲϯϲ ϲ Ϯ ϱϳϱ ϱϱϭ ϲ <>K' Ϭ ϲ Ϭ ϳ Ϭ ϳ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϰ Ϭ ϰ Ϭ ϱ Z Θ < s > ϭϯ dž Ζϭϲ Ϯϯ ϭϱ Ͳ Ͳϭ Ͳϰ ϰ ϭϰ /s hz Ϭ Ϭϳ ϭ ϮйͿ /s 'Z Zd ϰϭ ϳϱ ϰϭ Ϯϱ ϰϭ ϱϳ ϱϳ d Ϭ ϯϱ ϬϬͿ >W, Ϭ Ϭ Ϳ ϯ ϰϳ ϲϲ ϱθ ϲϰ ϲϰ ϱϱ ϮϬϭϲ DW>Kz ^ ϭ ϯϱ ͲϰйͿ K, Ͳ Increased estimates ϭϱ ϭϯ ϭϭ Strong growth rates Break out to highs on 1.7x average weekly volume from tight consolidation ϴ ϳ Best EPS rank ϲ R/S and A/D improvement ϱ hz ϱ нϭ ϭ ϰ ϲ Technogym s products Source: Corporate Website ϱϳ Ͳ O Neil Methodology Technogym has a strong growth profile, with revenues growing an average of 10% from Revenues are expected to grow an average of 7% in the next two years, led by growth in digital solutions and increase in the number of wellness clubs. EBITDA margin has expanded from 9% to 18% in the past four years and is expected to reach 19 20% by 2020, driven by price effect, cost optimization, and operating leverage. Registering triple-digit average EPS growth in the past three years, Technogym boasts the best-possible EPS Rank of 99. Growth Drivers For the first nine months in 2017, Technogym reported revenues of 413.8M, growth of 8.1% y/y at constant exchange rates. The figures imply acceleration in Q3 compared with H1 2017, when top-line growth at constant exchange rates was 6.2% y/y. Local Code: IT:TGYM Bloomberg Symbol: TGYM:IM ISIN: IT ϯ ϴ ϯ ϰ ϯ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Technogym is the leading global supplier of technology and design-driven products and services in the fitness and wellness industry. The Company continues to grow by launching new products and expanding its cloud-based offering, the MyWellness platform. Company Overview Focusing on the premium end of the market, Technogym offers a complete range of fitness equipment along with a digital cloudbased platform, MyWellness. H revenue by channel: field sales, 69%; wholesale, 23%; inside sales, 7%; retail, 1%. H revenue by geography: Europe (excluding Italy), 51%; APAC, 16%; North America, 11%; Italy, 9%; Middle East, India, and Africa, 8%; LATAM, 5%. нϲ Ϭϯй ϰ Ϯ ϭ Rising R/S line ϭ ϳ ϭ ϱ ϭ ϯ ϭ Ϯ ϭ ϭ ϭ Ϭ >/E sk>hd D ϭϭd D нϳϯй ϳD ϱd ϰ ϳD ϯd ϭϭ ĞĐ ϭϭ &/E E / >^ W^ hzͿ DĂƌ ϭϯ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ :ƵŶ ^ĞƉ ĞĐ Ϭ Ϭϭ W^ й, E' ϰϭ ϰ ^ > ^ D/> hzͿ Ϭ Ϭϯ нϯϭ ϰϲϰ ϳ Ϭ Ϭϲ ϱ ϴ Ϭ Ϭϴ Ϯϴϱ ϯ нй W^ й ^hzwz/^ &he ^ Ϭ Ϭϱ ^ĞƉ ϭϲ ĞĐ ϭϲ Ϭ Ͳϭ ϴ нϭϭϯй ϭϲ нϭϭй Ͳϰ DĂƌ ϭ Ϯϱ ϮϬϮϬ Ɛƚ ϮϬ Ϭ ϱͳljƌ,ŝőś Ϭ ϱͳljƌ >Žǁ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϯdž ϴϰ D ^, Z ^, > z &he ^ Π ϮϬ t/>>/ D KΖE /> н K /E ϲ ϭϭϯ ϮϯD ϮϱD dğđśŷžőljŵ d'zd /dͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ DĂƌĐŚ ϮϬ DĂƌĐŚ ϮϬ Q3 revenues ( 147M) were 2% above consensus expectations. Management commented that Technogym continues to gain market share versus its competitors. Technogym builds its brand image through innovative products. New products launched in 2016, such as Skillmill, Group Cycle Connect, and Climb Excite, accounted for 14% of revenues. It continues to launch new products, with two launched in H and two more planned for H The digital solutions segment accounts for only 2% of annual revenues but is the fastest-growing segment. Revenues from digital solutions had a CAGR of 30% from , reaching 11M. The global fitness equipment market is expected to have a CAGR of 4% from , reaching $12.5B. The industry is driven by increasing health awareness among customers. Technogym s strong cash generation gives it the flexibility to develop new products. In H1 2017, EBITDA cash conversion ratio reached 99.3%, compared with 84.1% in 2016 and 92.3% in Looking Forward Consensus estimates call for EPS growth of 27% y/y in 2017 and 14% y/y in Technogym reports 2017 results on March 28,

37 ITALY dğđśŷžőljŵ d'zd /d W^ dž ϭ ϭϱ ϭ ϬϬ Ϭ Ϯ Ϭ ϴϱ Ϭ ϳϯ Ϭ ϲϱ Ϭ ϱθ Ϭ Ϭ ϰϲ Ϭ D/> E džđś /dϭϭϭϱϭϲϭϲ ƚğđśŷžőljŵ ĐŽŵ W^ ZĂŶŬ ϴ >ĞŝƐƵƌĞͲWƌŽĚƵĐƚƐ DŬƚ ĂƉ Φϭ ϳϳ ^ĂůĞƐ Φϱϳϭ ϰϯd ĞƐĞŶĂ /d >z Technogym ^ŚĂƌĞƐ ϮϬϭD &ůžăƚ ϲϰd W^ ƵĞ ŝŷ ϯϯ ĂLJƐ ĞͿ K, Ͳϭϭй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 d,ek'zd ^W /^ E /d >zͳ ^ KDW Ez E' ' /E d, Z Z d/ke > WZK h d^ /E h^dzz d, KDW Ez D Eh& dhz ^ &/de ^^ Yh/WD Ed DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϭ Ϭ Ϭϯ Ϭ ϭϰ Ϭ W^ hz Ϭ Ϯ ϯϯйÿ Ϭ ϯϯ Ÿ ^, &>Kt ^,Z hz Ϭ Ϭϳ Ϭ Ϯϯ Ϭ ϮϬ Ϭ ϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭй ϭϭй ϭϯй Ͳ ϭϰ Ϯ ^ƚăďŝůŝƚljͿ ϭ ϴ ϲ Ͳ ϭθϯй ϯϲ ^ƚăďŝůŝƚljͿ ϭ ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϰϭ ϰϲϱ ϱϭϭ ϱϱϱ /Es d K ϰ ϲdž ϱϲ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϱ ϭй ϳ ϳϳ ϳ ϳϴ ϳϳ ϳ ϳ d y Z d ϳ ϰθй й ϱϯϯ ϰϲ ϰϲϰ ϰϱθ ϰ ϰϭϯ ϰ ϯ ϰ <>K' ϭ ϭ ϭ ϯ ϭ ϰ ϭ ϯ ϭ Ϯ ϭ Ϭ ϭ ϯ ϭ ϳ ϭ ϰ Z Θ < s > ϮϬ ϲϱdž Ζϭϲ Ϯϯ Ϯϴ ϯϭ ϯϯ ϯϯ ϯϱ ϯϳ ϰ /s hz Ϭ Ϭϳ Ϭ Ϳ /s 'Z Zd ϴϱ ϴϯ ϴϰ ϴϲ ϴϯ ϱ ϯ d Ϭ ϯ ϯ ϬϬͿ >W, Ϭ Ϯϭ Ϭ ϭϭͿ ϭϭ ϭϯ ϴ ϲ ϱ ϭϭ ϮϬϭϲ DW>Kz ^ ϭ ϴϲϴ ͲϯйͿ ϭϱ ϭϯ ϭϭ Ϭ Ϭ ϯϱ ϴ ϴϮ hz Ϭ ϯϭ ϴ ͲϬ ϴϭϱ Ͳϴ ϰ Ϭ Ϯϳ Ϭ ϳ Ϭ Ϯϯ ϲ Ϭ Ϭ ϭθ ϱ ϰ ϲ н Ϭ ϭϲ Ϭ ϭϱ Ϭ ϰ Ϯ ϯ ϴ ϯ ϰ Ϭ ϭϯ ϯ Ϭ Ϭ Ϭ ϬϮ Ϭ Ϭϴϰ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ Ϭϳϯ ϭ Ϭ Ϭϲϱ ϭ ϳ Ϭ Ϭϱϳ ϭ ϱ Ϭ Ϭ Ϭ Ϭϰϲ Ϭ Ϭ ϭ ϯ ϭ Ϯ ϭ ϭ D ϲd ϯ ϯd ϮD нθϯй ϭd ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ &/E E / >^ W^ hzͿ W^ й, E' ^ > ^ D/> hzͿ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ :ƵŶ ^ĞƉ ĞĐ Ϭ Ϭϭ ϰϭ ϰ Ϭ Ϭϯ нϯϭ ϰϲϰ ϳ нй Ϭ Ϭϲ ϱ ϴ Ϯϴϱ ϯ Ϭ Ϭϱ Ͳϭ ϴ нϭϭй ^ĞƉ ϭϲ ϴϲ D D ĞĐ ϭϲ Ϭ нϭϭϯй ϱ Ϯ н DĂƌ ϭϭϯ ϮϯD ϭϲϯ ϯϲd :ƵŶ Ϭ Ϭ нй ϲ Ϯ н ^ĞƉ ϯ ϰϭd ϭ ϰϭd ĞĐ Ϯϳ ϮϬ Ɛƚ ϭϰϰ ϮĞ ϭθϳ ϱğ ϮϬϭϴ Ɛƚ ϱθ ϱͳljƌ,ŝőś Ϭ ϱͳljƌ >Žǁ Ϭ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϭϴ Ϯ ϯd ǀƐ /ŶĚ ǀŐ ϭ ϳdž dğđśŷžőljŵ d'zd /dͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -35- Consumer Cyclical: Leisure-Products

38 Sixt (Xet) GERMANY ^ŝdžƚ yğƚͿ ^/yϯy W^ ϭϱ dž ϭϭ ϯϯ ϬϬ ϴ ϲϳ ϴ ϬϬ ϳ ϯϯ ϲ ϲϳ ϲ ϬϬ ϱ ϯϯ ϰ ϲϳ y dz džđś ϬϬϬϳϮϯ нϰ ϴ ϳϰϰϰϰϱϰ W^ ZĂŶŬ ϱ >ĞŝƐƵƌĞͲ^ĞƌǀŝĐĞƐ ĂďŽƵƚ Ɛŝdžƚ ĐŽŵ DŬƚ ĂƉ ΦϮ ϰ ^ĂůĞƐ ΦϮ ϱϱ WƵůůĂĐŚ ' ZD Ez /ŶĐ ^ŚĂƌĞƐ D &ůžăƚ ϭϯd W^ ƵĞ ϯ ϭϲ ϮϬϭϴĞ IURP 3LYRW LQ :HHNV D'Dd ŽǁŶƐ K, Ͳϭй ^/yd ^ /^ ' ZD EzͲ ^,K> /E' KDW Ez E' ' /E d, WZKs/^/KE K& DK />/dz ^ Zs/ ^ &KZ h^/e ^^ E KZWKZ d h^dkd Z^ ^ t >> ^ WZ/s d dz s > Z^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ Ϭ ϮϬ ϭ ϰϭ Ϯ ϬϬ ϭ ϲϰ ϭ ϳ Ϯ Ϯ Ϯ ϯ ϯ Ϭϭ W^ hz ϯ ϲϲ йÿ ϯ Ϯ Ÿ ^, &>Kt ^,Z hz ϴ ϴ ϲϰ ϲ ϳϴ ϴ ϱϯ ϴ ϯ ϭϯ Ϯ ϰ ϱ ϳ ϮϬ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭй ϴй Ͳ ϭθй ϴ ^ƚăďŝůŝƚljͿ ϭϭй й Ϯй ϭ й ϭ ϭ ϭ Ͳ ϭ ϴ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' ϭϯй Ͳϭ Ͳϰй Ϯй ϰй Ϯϭй ϭϭй KDW Z d/e' ^ > ^ D/>Ϳ hz ϭ ϳϲ ϭ ϲ ϭ ϱϲϯ ϭ ϱ ϭ ϱϲ ϭ ϲϱϯ ϭ ϳϲ Ϯ Ϯ ϰ /Es d K ϰdž ϲϯ EŽǀ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ ϭϲ d й ϭϱ ϭй ϳϭ ϳϭ ϳϭ ϳϱ ϳϰ ϳϯ ϳϯ ϳϯ ϳϯ d y Z d ϯ ϯϭй Ϯϴй ϰϰ ϰϱ ϰϱ ϰ ϱϭ ϰθ ϰθ ϰϰ ϰϱ <>K' Ϯ Ϭ Ϯ Ϭ ϭ ϴ ϭ ϳ ϭ ϱ ϭ ϯ ϭ ϯ ϭ Ϯ ϭ ϭ Z Θ < s > ϯ ϭdž Ζϭϲ Ϯϭ Ϯϭ Ϯϭ ϭϱ ϯϲ ϯϲ ϯ /s hz ϭ ϬϬ Ϯ Ϳ /s 'Z Zdнϭ ϭϱͿ ϴϴ ϴ ϴϴ ϴ ϴϴ ϴϴ ϴϳ ϴ d ϭ ϬϮ Ϯϯ ϬϬͿ >W, Ϭ ϭϱ Ϭ ϭϭͿ Ϯ ϴϯ ϲϯ ϳϰ ϴϴ ϭ ϴϴ ϮϬϭϲ DW>Kz ^ ϲ ϮϭϮ ϮϭйͿ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ Company Overview Sixt offers car rental and leasing services for corporate customers and private travelers. The leasing segment is managed by Sixt Leasing (LNSXX.DE), which is 41.9% owned by Sixt but fully consolidated. Annual revenue by business segment: vehicle rental, 71%; leasing, 29%. O Neil Methodology The stock has an EPS Rank of 95 as a result of accelerating earnings growth, a three-year average EPS growth rate of 18%, and a five-year average EPS growth rate of 16%. It has a stability factor of 8 (out of 99, lower is better). In , consensus calls for high single digit revenue CAGR and low double digit EPS CAGR. Growth Drivers In Q3 2017, revenues grew 10% y/y to 745M (in line with consensus), while EBIT grew 35% y/y to 121.6M (slightly above consensus). Top-line growth was driven by international operations, where revenues grew 17% y/y. Q3 EBIT growth was driven by the vehicle rental segment, where pretax profit grew 45.4% y/y. International segment growth is driven by tourism in France and Spain and expansion in the U.S. The U.S. vehicle rental market is the world s largest, valued at about $29B. Sixt currently has a 1% market share in the country, with significant room for further growth. Local Code: D Bloomberg Symbol: SIX2:GR ISIN: DE ͲϬ ϯ ϰϲ Ϯ н Ϯ ϬϬ ϭ ϳϯ ϭ ϭ ϰϳ Sixt (SIX2X.DE) is the largest car rental company in Germany and among the top five in Europe. The Company differentiates itself through premium positioning. hz ͲϬ Ϯ ϯ ϯϯ ϯ Ϭϳ Ϯ Ϯϳ Source: Corporate Website ϴϭ ϰ ϬϬ ϯ ϴϱ Ϯ ϱϯ A Sixt Store ϭ Ϯϳ ϭ ϭ ϬϬ ϭϱ Ϭ ϴϳ Ϭ Ϭ ϳϯ ϭϯ ϭϭ Ϭ ϲϳ Ϭ Ϭ ϱϯ ϴ Ϭ ϰϳ ϳ ϰϭϭ< ϮϬϬ< Ͳϭ ϳϮ ϲ< < ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ ϱ Ϭ ϭϰ W^ hzͿ DĂƌ Ϭ ϯϯ :ƵŶ Ϭ ϱϯ ^ĞƉ Ϭ ĞĐ Ϭ ϯϯ Ϭ ϯ Ϭ ϱ Ϭ ϯ Ϭ Ϭ ϰϯ Ϭ ϱϳ ϭ Ϭϴ Ϭ ϯϯ Ϭ ϯϳ Ϭ ϲθ ^ĞƉ ϭϲ ϭ ĞĐ ϭϲ Ϭ ϲϰ DĂƌ Ϭ ϰϳ :ƵŶ Ϭ ϯ ^ĞƉ ϭ ϴϮ Ͳϯй Ͳϲ W^ й, E' ϰϯϱ ϭ ^ > ^ D/> hzͿ Ͳ ϯϲϲ ϰ ϭ нϯ ϰ ϲ нϭϯ ϰϭ ϭ нй Ϯ ϲ нϭϭй ϰϰϭ Ϯ нϭ ϱϭϱ ϲ нй ϰϱϲ ϳ нϭ ϰϲϰ ϰ Ͳϯй ϱϯϳ ϴ нϭ ϲϯϭ ϱ Ͳϭ ϱϰϱ ϱ Ͳ ϱϯϳ ϱ нй ϲϭϭ Ϭ нй ϲϳϳ н ϱθϲ ϯ нϯ ϱϲ ϯ нϯ ϲϰϰ ϱ нϯ ϳϰϱ Ϯ нϭй нϭй нϲ нϭ D Z'/E &d Z d y Ͳ нϭй нθй нϯй нϰй нθй нϭ нϭϯй нϯϭй нй нй нй нϭ н н н н н нϭ нϰ Ϯй нϲ Ϯй нθ Ϯй нϯ ϴй нϰ нϲ ϰй нθ нϰ нϰ нϱ ϭй нθ Ϯй нϯ ϴй нϯ ϯй нϱ ϯй н Ϯй нϱ ϭй нϯ нϲ ϴй нϭϭ ϱ нϭ ϲ Ͳϰϭ ϯй ϲ Ͳϳ ϲ ϴ нϱθ нϭϭ ϯ Ϭ Ͳϱϭ W^ й ^hzwz/^ ϲϳ &he ^ ϲϭ ϳϮ ϲθ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϳϳ ϴϰ ϭϭϲ ϭϭϲ ϭϯϳ ϭϯϱ ϲ ϭϯ ϭ ĞĐ ϮϬϭϴ Ɛƚ ϮϬ ϮϬ Ɛƚ ϯ ϱͳljƌ,ŝőś ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ^ŝdžƚ yğƚͿ ^/yϯy Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ :ĂŶƵĂƌLJ ϭϲ ϮϬϭϴ On December 14, 2017, management indicated that the momentum is likely to continue in its international business in the medium term, and that it will be able to deliver solid growth in the U.S. Sixt is planning to open 10 new stations in the next 20 months, bringing the total number of stations to more than 60 in the region. We believe that Sixt is a viable challenger to established players in the U.S. thanks to its focus on offering a premium, differentiated service. Within its corporate-owned rental stores, Sixt focuses heavily on premium vehicles. In 2016, 47% of Sixt s fleet (excluding franchise stores) consisted of vehicles from German manufacturers Audi, BMW, and Mercedes-Benz. It offers a variety of services targeted at different consumer segments, including DriveNow and its holiday vehicle rental service. Looking Forward For full-year 2017, Sixt expects total pretax earnings to be significantly higher compared with the 218.3M pretax profit in It also expects solid growth in revenues for At the end of 2016, management called for stable to slightly increasing pretax profit, and a slight increase in operating revenues. Next Catalyst: Sixt will announce its Q trading update on Mach 15,

39 GERMANY ^ŝdžƚ yğƚͿ ^/yϯy W^ ϭϱ dž ϭϯ ϲϳ ϭϭ ϯϯ ϬϬ ϴ ϲϳ ϴ ϬϬ ϳ ϯϯ ϲ ϲϳ ϲ ϬϬ ϱ ϯϯ ϰ ϲϳ y dz džđś ϬϬϬϳϮϯ нϰ ϴ ϳϰϰϰϰϱϰ W^ ZĂŶŬ ϱ ĂďŽƵƚ Ɛŝdžƚ ĐŽŵ >ĞŝƐƵƌĞͲ^ĞƌǀŝĐĞƐ DŬƚ ĂƉ ΦϮ ϰϰ ^ĂůĞƐ ΦϮ ϱϱ WƵůůĂĐŚ ' ZD Ez /ŶĐ ^ŚĂƌĞƐ D &ůžăƚ ϭϯd Sixt (Xet) W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ ^/yd ^ /^ ' ZD EzͲ ^,K> /E' KDW Ez E' ' /E d, WZKs/^/KE K& DK />/dz ^ Zs/ ^ &KZ h^/e ^^ E KZWKZ d h^dkd Z^ ^ t >> ^ WZ/s d dz s > Z^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ Ϭ ϮϬ ϭ ϰϭ Ϯ ϬϬ ϭ ϲϰ ϭ ϳ Ϯ Ϯ Ϯ ϯ ϯ Ϭϭ W^ hz ϯ ϲϲ йÿ ϯ Ϯ Ÿ ^, &>Kt ^,Z hz ϴ ϴ ϲϰ ϲ ϳϴ ϴ ϱϯ ϴ ϯ ϭϯ Ϯ ϰ ϱ ϳ ϮϬ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭй ϴй Ͳ ϭθй ϴ ^ƚăďŝůŝƚljͿ й Ϯй ϭ й ϭ ϭ ϭ Ͳ ϭ ϴ ^ƚăďŝůŝƚljͿ ϭϭй ϭϯй Ͳϭ Ͳϰй Ϯй ϰй Ϯϭй ϭϭй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϳϲ ϭ ϲ ϭ ϱϲϯ ϭ ϱ ϭ ϱϲ ϭ ϲϱϯ ϭ ϳϲ Ϯ Ϯ ϰ /Es d K ϰdž ϲϯ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϭϱ ϭй ϳϱ ϳϰ ϳϯ ϳϯ ϳϯ ϳϯ ϳϰ ϳϯ ϳϮ d y Z d ϯ ϯϭй Ϯϴй ϰ ϱϭ ϰθ ϰθ ϰϰ ϰϱ ϰϱ ϰϰ <>K' ϭ ϳ ϭ ϱ ϭ ϯ ϭ ϯ ϭ Ϯ ϭ ϭ ϭ ϭ ϭ Ϯ ϭ Ϯ Z Θ < s > ϯ dž Ζϭϲ ϭϱ ϯϲ ϯϲ ϯ ϰϰ /s hz ϭ ϬϬ Ϯ Ϳ /s 'Z Zdнϭ ϭϱͿ ϴ ϴϴ ϴϴ ϴϳ ϴ ϯ ϴ ϴϴ d ϭ Ϭϰ Ϯϯ ϬϬͿ >W, Ϭ ϭϲ Ϭ ϭϯͿ ϲϯ ϳϰ ϴϴ ϭ ϴϴ ϰ Ϭ ϮϬϭϲ DW>Kz ^ ϲ ϮϭϮ ϮϭйͿ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ hz Ͳϭ Ͳϭ ϰ ϬϬ ϯ ϴϱ ϯ ϯϯ ϯ Ϭϳ ϰϲ Ϯ Ϯ ϱϯ Ϯ Ϯϳ ϴϴ Ͳ Ϯ ϬϬ ϭ ϳϯ ϭ ϭ ϰϳ ϭ Ϯϳ ϭ ϭ ϬϬ ϭϱ Ϭ ϴϳ Ϭ Ϭ ϳϯ ϭϯ ϭϭ Ϭ ϲϳ Ϭ Ϭ ϱϯ ϴ Ϭ ϰϳ ϳ ϰϭϭ< ϮϬϬ< ϭθϰ ϴ< Ͳ < ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ :ƵŶ ^ĞƉ ĞĐ &/E E / >^ Ϭ ϱ Ϭ ϭϰ Ϭ ϯϯ Ϭ ϱϯ Ϭ Ϭ ϯϯ Ϭ ϯ Ϭ ϱ Ϭ ϯ Ϭ Ϭ ϰϯ Ϭ ϱϳ ϭ Ϭϴ Ϭ ϯϯ Ϭ ϯϳ Ϭ ϲθ W^ hzͿ Ͳϯй Ͳϲ Ͳ нϯ нϭϯ нй нϭϭй нϭ нй нϭ Ͳϯй нϭ Ͳϭ Ͳ нй W^ й, E' ϰϯϱ ϭ ϯϲϲ ϰ ϭ ϰ ϲ ϰϭ ϭ Ϯ ϲ ϰϰϭ Ϯ ϱϭϱ ϲ ϰϱϲ ϳ ϰϲϰ ϰ ϱϯϳ ϴ ϲϯϭ ϱ ϱϰϱ ϱ ϱϯϳ ϱ ϲϭϭ Ϭ ^ > ^ D/> hzͿ нϭй нϭй Ͳ нϭй нθй нϯй нϰй нθй нϭ нϭϯй нϯϭй нй нй нй нϭ н Ϭ Ͳϱϭ нϭ Ͳϰϭ ϯй Ͳϳ W^ й ^hzwz/^ ϲϭ ϲϳ ϳϮ ϲθ ϳϳ ϴϰ ϱ ϭϭϲ ϭϭϲ ϭϯϳ ϭϯϱ ϲ ϲ ϲ ϲ &he ^ ϴϴ ϲϭϯ ϯ ϭ ϮϬϴ ϯ ϭϲϲ ϳ Ϯ ϴϰϴ ϯϭϭ Ϯ ϲϯ ϯϲϳ ϯ ϳ ϭθ ϰ Ϭϰ ϯ ϰ Ϯ ϳϳϳ ϰ ϲϳϳ ϰϭ ϰ ϳϭϰ ϯϳϯ ϰ ϱϳ ϴϴϮ ϱ ϯϯϲ ϱ ϱϯ ϰϱ ϱ ϳϱϳ ϮϯϮ ϱ ϲ Ϭ ϱ ϳϭϭ ϲϳϯ ^, Z ^, > z &he ^ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ^ĞƉ ϭϲ ϭ нй ϲϳϳ н ĞĐ ϭϲ DĂƌ :ƵŶ ^ĞƉ Ϭ ϲϰ Ϭ ϰϳ Ϭ ϯ ϭ ϴϮ н нϯ нϯ нϯ ϱθϲ ϯ ϱϲ ϯ ϲϰϰ ϱ ϳϰϱ Ϯ н н н нϭ нϱθ нϭϭ ϴ ϯ ϭϯ ϭ ϱ ϱ Ϯ ϱ ϲ ϱ ϱ Ϯϱϱ ϯ ϱ Ϭϯϲ ϰϲϯ ϱ ϮϬϭ ϰϯϳ ĞĐ ϮϬϭϴ Ɛƚ ϮϬ ϮϬ Ɛƚ ϭθ ϴϯ ϱͳljƌ,ŝőś Ϭ ϱͳljƌ >Žǁ Ϭ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ^ŝdžƚ yğƚͿ ^/yϯy Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -37- Consumer Cyclical: Leisure-Services

40 Compugroup Medical (Xet) GERMANY ŽŵƉƵŐƌŽƵƉ DĞĚŝĐĂů yğƚͿ KWy ZW^ Ϯ ϳ dž ϰθ ϭϱ ϰϰ ϰϰ ϰϭ ϳϰ ϯϳ Ϭϰ ϯϯ ϯϯ Ϯ ϲϯ Ϯϱ ϯ CompuGroup Medical (COPX.DE) is one of the leading providers of global e-health solutions. It is expected to be the key beneficiary of improving German healthcare industry dynamics. y dz džđś ϬϬϬϱϰϯϳϱ ĐŐŵ ĐŽŵ ŽŵƉ ^ŌǁƌͲ^ƉĞĐ ŶƚĞƌƉƌƐ <ŽďůĞŶnj ' ZD Ez /ŶĐ ϰ DŬƚ ĂƉ Φϯ Ϭϲ ^ĂůĞƐ ΦϱϳϮ ϱϭd ^ŚĂƌĞƐ ϱϯd &ůžăƚ ϮϴD WR 3LYRW D'Dd ŽǁŶƐ KDWh'ZKhW D / > ^ /^ ' ZD EzͲ ^ ^K&dt Z s >KW Z d, KDW Ez &K h^ ^ KE ^K&dt Z ^K>hd/KE^ dk d,, >d, Z /E h^dzz /E >h /E' W,z^/ / E^ W, ZD / ^, >d, /E^hZ E ^ > KZ dkz/ ^,K^W/d >^ E Z, />/d d/ke E Z & />/d/ ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϯ Ϭ Ϭ ϯϯ Ϭ Ϭ ϲϯ Ϭ ϰϳ Ϭ ϱϯ Ϭ ϳϳ Ϭ W^ hz ϭ ϲź Ϯ ϰθ ϲÿ ^, &>Kt ^,Z hz Ϭ ϲϯ Ϭ ϴϮ ϭ Ϭϯ Ϭ ϯ ϭ ϭ ϭθ Ϭ ϲ ϭ ϲϳ ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй ϭϭй ϴй ϭϯй й Ͳ ϭ ϭϲ ^ƚăďŝůŝƚljͿ ϰй ϭй ϭθй й Ϯϭй й Ͳ й ^ƚăďŝůŝƚljͿ Ϯ Ϯϴй Ϯ й Ϯй ϭϯй ϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯϯ ϯϭϯ ϯϳ ϰϱϭ ϰ ϱϭϱ ϱϰϯ ϱ /Es d K ϭdž ϴϲ EŽǀ EŽǀ EŽǀ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ d й Ϯй ϭϲϯй ϭϰ ϱ ϱθ ϱθ ϱ ϱθ ϱϯ ϱϱ ϱϲ d y Z d ϰ й ϰ ϰϭ ϱϰ ϱϲ ϱϲ ϱθ ϲϯ ϲϰ ϲϯ ϲϯ <>K' ϯ й < s > Ϭϲdž Ζϭϲ Ϭ ϳ ϭ ϭ ϭ ϯ ϭ ϰ ϭ ϯ ϭ ϭ ϭ Ϭ ϭ Ϭ ϭ ϭ Z Θ Ͳϰ ϮϬ Ϯϭ Ϯϭ ϯϯ /s hz Ϭ ϯϱ Ϭ Ϳ /s 'Z Zdн Ϳ Ϭ ϳ ϬϬͿ >W, Ϭ Ϭ ϬͿ ϲϰ ϴϯ ϴϱ ϴϱ ϴϱ ϴϰ ϴϮ ϴϭ ϴϱ d ϱϭ ϱθ ϲθ ϳϰ ϲϳ ϲϯ ϭϯϭ ϭ ϮϬϭϲ DW>Kz ^ ϰ ϯϯϯ ϭйͿ ϱϱ ϱϲ Source: Corporate Website нϰ ϭ ϬϬϬ W^ ZĂŶŬ ϱ ϭθ ϱϯ Ϭϰ K, Ͳϭй ϯϯ ϯϲ ϯϲ ϭϰ Ϭϳ ϭ ϭϯϭ ϭ Very strong EPS is expected in 2018, per consensus Ϭ Shares are breaking out of a flat base Ϯϭ ϯϲ Ϯϭ ϯϲ Ϯϱ ϱϳ ϰϱ hz нϯ ϳϯ нϰ ϰϱ ϱϯ ϯϭ ϲϱ ϮϬ ϬϬ ϰϲ ϰϭ ϯϲ Ϭϲ Ϯϴ ϲϯ ϴ ϴ ϴ ϭϱ ϱϯ ϰ ϭϯ ϱ ϭϭ ϰϳ ϭϭ ϭϭ ϭ ϰ ϭϱ ϱϲ ϰ ϯϲ ϭϯ ϯϯ ϱϯ ϴϱ н Ϯϱ Ϭ Company Overview CompuGroup Medical plays a leading role in the development of global e-health solutions and enjoys market leadership in Germany as well other key European countries. The Company s main products include: Ambulatory Information System (AIS), which targets physicians, dentists, and medical care centers; Pharmacy Information Systems (PCS), which focuses on retail pharmacies; and Hospital Information System (HIS) targeting multi-size hospitals, rehabilitation centers, and social services organizations. Q revenue by segment: AIS, 58%; PCS, 19%; HIS, 13%; other, 10%. O Neil Methodology The stock is breaking out from a flat base and is actionable. The stock has a strong technical profile, including an Up/Down volume ratio of 1.2 and an A/D Rating of B+. Its RS line is near an all-time high and its RS Rating has improved to 84. Expanding pretax margin and increasing ROE indicate strong profitability. In Q3 2017, the Company s revenue increased 1% y/y to AIS and PCS combined contributed 105.2M (76% of total), which corresponds to 3% growth, of which 2% is organic growth at constant currency. Consolidated EBITDA came in at 28.3M, the same as in Q Its operating margin contracted 40bps y/y to 20.5%, impacted by a significant increase in the operating expenses related to the preparations for the rollout of the telematics infrastructure (TI) in Germany. Growth Drivers The German Federal Ministry of Health introduced a bill for the mandatory use of Telematics Infrastructure (TI) and electronic health cards in Local Code: D Bloomberg Symbol: COP:GR ISIN: DE ϳ Ϭϰ ϲ ϰ ϴϭ ϰ ϰϰ ϰ Ϭϳ ϭθ Ϭ ϬϮ ϱ ϱϲ ϭϲ ϴϲ High RS Rating of 85 and A/D Rating of B+ ϱθ ϭϱ ϭϯ ϭϭ ϭϰ ϭϲ ϯ ϯ ϯϯ Ϯ ϲ ϴ Ϯ ϱ ϳ Ϯ ϲ ϭ ϴϱ ϱ ϰϭϭ< ϮϬϬ< ϭϲϭ ϰ< Ϭ< Ͳϰ < 4827(6 '(/$<(' $7 /($67 0,187(6 :ƵŶ ^ĞƉ &/E E / >^ Ϭ Ϭϯ Ϭ ϭϭ W^ hzͿ Ͳϴ Ͳϴй W^ й, E' ϱ ϭϭϭ ϰ ^ > ^ D/> hzͿ ĞĐ Ϭ ϭϯ нϱ ϭϯϱ ϭ Ϭ ͲϱϮй ϭ ϭ Ϭ нϯϯϯй ϭ ϯ Ϭ н ϭϯϱ ϴ Ϭ Ϭϴ Ͳϯϯй ϭϰϭ Ϭ нϯϯ Ϯ ϯ Ϭ Ϭϴ Ͳй ϴ ϭ Ϭ Ͳϱ ϭϯϱ ϳ Ϭ нϭϭϯй ϭϰϲ ϴ Ϭ ϮϬ ͲϱϮй ϱ Ϯ Ϭ Ϯϱ нϯϭϯй ϱ ϲ ^ĞƉ ϭϲ Ϭ н ϱ ϳ ĞĐ ϭϲ Ϭ нϱϯй ϭϱϯ ϳ DĂƌ Ϭ нϯ ϭϰϭ ϱ :ƵŶ Ϭ Ϯϯ Ͳϴй ϱ ^ĞƉ Ϭ Ϭϴ Ͳϱϴй ϳ ϴ ĞĐ Ϭ ϱϰğ нθйğ ϭθϱ ϬĞ DĂƌ ϭθ Ϭ ϱϲğ нϭϭğ ϮϬϬ ϬĞ :ƵŶ ϭθ Ϭ ϳϮĞ нϯйğ Ϯϯϱ ϬĞ ^ĞƉ ϭθ Ϭ ϴϲĞ нϳğ Ϯ ϬĞ ͲϮй нϰй нϭ Ϯй нϱ D Z'/E &d Z d y Ͳϴϳ Ͳϰϱ W^ й ^hzwz/^ ϴ &he ^ ϴϮ н нϰ Ͳϯϱ ϭй ϴ нθй нϯ Ͳϰϭ Ϯй ϱ нϭ нϱ Ϯй нй нθ нϭϲ ϭ нй нϯ нϯϭ ϭϰϭ нθй нϭϱ ϴй н нϯ нϰ ϰй ϭϱϰ нϰ нϰй нϱ ϴй н ϭϲϰ нϯй нϳ Ϯй нϯ ϭϲθ ͲϮй н ϯй нϯϯ ϱ нθй нϳ ϭй Ͳϴ ϴй ϭθθ н нθ ϭй Ͳϭϲ Ϯ н нθ ϴй нϯй нθ ϰй нθ ϴй ϰ нϭй нϯ Ͳϰϳ Ϯй ϮϬϯ нϯğ нϰϭйğ нϲθйğ нθϭйğ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϭϭϰ ϭϰϯ Ϭ ϭθϱ ϱϯ ϮϬϭϴ Ɛƚ Ϯϯ ϭ ϮϬ Ɛƚ Ϭ ϱͳljƌ,ŝőś ϲ ϱͳljƌ >Žǁ Ϯϭ ϲ ǀƐ /ŶĚ ǀŐ Ϭ ϴdž ŽŵƉƵŐƌŽƵƉ DĞĚŝĐĂů yğƚͿ KWy Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ :ĂŶƵĂƌLJ Ϭϱ ϮϬϭϴ Gematik, the governing body for TI, began the national rollout of TI in Germany on July 1, The deadline for the connection of all healthcare participants (approx 225,000) in Germany is December 31, On November 10, COPX became the first company to receive accreditation by Gematik for all required products and services to connect to the TI across Germany. COPX will be the first among its peers to roll out the TI infrastructure (connectors/card readers). The Company expects to install all orders in early Its nearest competitor, T-Systems, will introduce its connector in March 2018 and has not yet started the certification process, which will take three to six months, implying that COPX will be the sole provider in H Looking Forward 2017 Guidance: The Company expects revenue of 580M-590M (previously: 600M-630M) and EBITDA of 125M-130M (previously: 138M-150M). COPX lowered its guidance because it will not be able to complete all the installations before Next Catalyst: Preliminary Q results and full year report will be released on February

41 GERMANY ŽŵƉƵŐƌŽƵƉ DĞĚŝĐĂů yğƚͿ KWy W^ dž ϯ ϱϳ ϯ Ϯ ϴϲ Ϯ ϲϯ Ϯ Ϯ ϭϰ ϭ ϭ ϲϳ ϭ ϰϯ нϰ ϭ ϬϬϬ W^ ZĂŶŬ y dz džđś ϬϬϬϱϰϯϳϱ ĐŐŵ ĐŽŵ ŽŵƉ ^ŌǁƌͲ^ƉĞĐ ŶƚĞƌƉƌƐ Compugroup Medical (Xet) DŬƚ ĂƉ ΦϮ ϲϭ ^ĂůĞƐ ΦϱϳϮ ϱϭd <ŽďůĞŶnj ' ZD Ez /ŶĐ ϰ ^ŚĂƌĞƐ ϱϯd &ůžăƚ ϮϴD W^ ƵĞ ŝŷ ϯ ĂLJƐ ĞͿ K, Ͳй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ϭ KDWh'ZKhW D / > ^ /^ ' ZD EzͲ ^ ^K&dt Z s >KW Z d, KDW Ez &K h^ ^ KE ^K&dt Z ^K>hd/KE^ dk d,, >d, Z /E h^dzz /E >h /E' W,z^/ / E^ W, ZD / ^, >d, /E^hZ E ^ > KZ dkz/ ^,K^W/d >^ E Z, />/d d/ke E Z & />/d/ ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϯ Ϭ Ϭ ϯϯ Ϭ Ϭ ϲϯ Ϭ ϰϳ Ϭ ϱϯ Ϭ ϳϳ Ϭ W^ hz ϭ ϱθйź Ϯ ϯ ϲθйź ^, &>Kt ^,Z hz Ϭ ϲϯ Ϭ ϴϮ ϭ Ϭϯ Ϭ ϯ ϭ ϭ ϭθ Ϭ ϲ ϭ ϲϳ ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй ϭϭй ϴй ϭϯй й Ͳ ϭ ϭϲ ^ƚăďŝůŝƚljͿ ϰй ϭй ϭθй й Ϯϭй й Ͳ й ^ƚăďŝůŝƚljͿ Ϯ Ϯϴй Ϯ й Ϯй ϭϯй ϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯϯ ϯϭϯ ϯϳ ϰϱϭ ϰ ϱϭϱ ϱϰϯ ϱ /Es d K ϭdž ϴϲ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ϯй ϭϲϯй ϭϰ ϱ ϱθ ϱϯ ϱϱ ϱϱ ϱϱ ϱϱ ϱϲ ϰϳ d y Z d ϰ й ϰ ϱθ ϲϯ ϲϰ ϲϯ ϲϭ ϲϭ ϲϭ ϲϲ ϲϰ <>K' ϭ ϯ ϭ ϭ ϭ Ϭ ϭ Ϭ ϭ Ϯ ϭ ϯ ϭ ϯ ϭ Ϯ Ϭ ϳ Z Θ ϯ й < s > ϭϭ ϲdž Ζϭϲ ϮϬ Ϯϭ Ϯϭ ϯϯ ϰϯ ϯϯ /s hz Ϭ ϯϱ Ϭ Ϳ /s 'Z Zdн Ϳ ϴϱ ϴϰ ϴϮ ϴϭ ϴϰ ϴϯ ϴϱ ϳϭ ϲ d Ϭ ϳϱ ϴ ϬϬͿ >W, Ϭ Ϭϴ Ϭ ϬϱͿ ϲϳ ϲϯ ϭϯϭ ϭ Ϯ ϰ ϯ ϭϭϯ ϭ ϮϬϭϲ DW>Kz ^ ϰ ϯϯϯ ϭйͿ ϭ ϭϯϭ ϭ Ϭ ϭ ϭ ϰ Ϭϲ hz ϭ ϬϬ Ͳϯ Ͳϲ ϭϭй ϰϲ Ϭ Ϭ ϴϯ Ϭ ϴϭ Ϭ ϳϭ Ϭ ϲϯ Ϭ ϱϳ Ϭ ϱϯ ϲ Ϭ ϰϱ Ϭ ϰϭ Ϭ ϯϲ ϭϱ Ϭ ϯϭ Ϭ Ϯ Ϭ ϭϯ ϭϭ Ϭ Ϭ Ϯϭ Ϭ ϴ Ϭ ϳ Ϭ ϭϰ ϲ Ϭ ϭϯ ϱ ϰϭϭ< Ϭ< ϮϬϬ< нϰϯй < ϰϭ< ĞĐ ϭϯ DĂƌ :ƵŶ ^ĞƉ ĞĐ &/E E / >^ Ϭ Ϭϴ Ϭ Ϯϭ Ϭ Ϭϯ Ϭ ϭϭ Ϭ ϭϯ W^ hzͿ ͲϮ нй Ͳϴ Ͳϴй нϱ W^ й, E' ϭϭθ ϭ ϱ ϱ ϭϭϭ ϰ ϭϯϱ ϭ ^ > ^ D/> hzͿ нϯй нϭй ͲϮй нϰй н Ͳϴϳ Ͳϰϱ Ͳϯϱ ϭй W^ й ^hzwz/^ Ͳϴ ϲϲ ϴϮ ϴ ϴ &he ^ ϲϲ ϴϮϳ Ϭ ϴϭϴ ϯϱ Ϭ ϳ Ϭϴϱ ϴϱϯ ϭϰ ^, Z ^, > z &he ^ Ϭ ͲϱϮй ϭ ϭ нθй Ͳϰϭ Ϯй ϱ D Ϭ нϯϯϯй ϭ ϯ нϭ ϭϭϰ ϭϭd Ϭ н ϭϯϱ ϴ нй нϭϲ ϭ ϭϯd Ϭ Ϭϴ Ͳϯϯй ϭϰϭ нй нϯϭ ϭϰϭ ϭϭd Ϭ нϯϯ Ϯ ϯ нθй ϭϰϯ ϭϭd Ϭ Ϭϴ Ͳй ϴ ϭ н нϰ ϰй ϭϱϰ ϭϯd Ϭ Ͳϱ ϭϯϱ ϳ Ϭ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ нϭϭϯй ϭϰϲ ϴ нϰй н ϭϲϰ ϭϯd Ϭ ϮϬ ͲϱϮй ϱ Ϯ нϯй нϯ ϭϲθ ϭϭd Ϭ Ϯϱ нϯϭϯй ϱ ϲ ͲϮй нϯϯ ϱ ϭϭd ^ĞƉ ϭϲ Ϭ н ϱ ϳ нθй Ͳϴ ϴй ϭθθ ϭϯd ĞĐ ϭϲ Ϭ нϱϯй ϭϱϯ ϳ н Ͳϭϲ Ϯ ϭϯd DĂƌ Ϭ нϯ ϭϰϭ ϱ н ϭθϱ ϭϭd :ƵŶ Ϭ Ϯϯ Ͳϴй ϱ нϯй нθ ϴй ϯ ϭϭd ^ĞƉ Ϭ Ϭϴ Ͳϱϴй ϳ ϴ нϭй Ͳϰϳ Ϯй ϮϬϰ D ĞĐ Ϭ ϱϰğ нθйğ ϭϲϲ ϬĞ нθйğ DĂƌ ϭθ Ϭ ϱϲğ нϭϭğ ϭϱϯ ϬĞ нθйğ ϱϯ ϮϬϭϴ Ɛƚ ϮϬ ϮϬ Ɛƚ Ϯϭ ϴϰ ϱͳljƌ,ŝőś ϲ Ϭ ϱͳljƌ >Žǁ Ϯϭ Ϭ ϮϬϲ D ǀƐ /ŶĚ ǀŐ Ϭ ϳdž ŽŵƉƵŐƌŽƵƉ DĞĚŝĐĂů yğƚͿ KWy Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -39- Technology: Comp Sftwr-Spec Enterprs

42 Nemetschek (Xet) GERMANY EĞŵĞƚƐĐŚĞŬ yğƚͿ E Dy W^ dž ϰ ϱθ ϰ ϯ ϳϱ ϯ ϯϯ Ϯ Ϯ Ϯ Source: Corporate Website Ϯ Ϭϴ ϭ Ϯ ϭ ϳϱ y dz džđś ϬϬϬϲϰϱϮϳ ŶĞŵĞƚƐĐŚĞŬ ĐŽŵ W^ ZĂŶŬ y /s ϲ Ϯ ϮϬ DŬƚ ĂƉ ΦϮ ϰϯ ^ĂůĞƐ Φϯϯϳ ϮD D'Dd ŽǁŶƐ E D d^, < ^ /^ ' ZD EzͲ ^ ^K&dt Z s >KW Z &KZ d, KE^dZh d/ke /E h^dzz d, KDW Ez KW Z d ^ d,zkh', &KhZ ^ 'D Ed^ ^/'E h/> D E ' E D / E Ed Zd /ED Ed DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϯϳ Ϭ ϯϯ Ϭ ϰ Ϭ ϱϰ Ϭ ϱϭ Ϭ ϲϯ Ϭ ϴϮ Ϭ ϯ ϭ W^ hz ϭ ϲϯ ϯϯйÿ ϭ ϱ ϮŸ ^, &>Kt ^,Z hz Ϭ ϳϯ Ϭ ϲθ Ϭ ϴϭ Ϭ ϴϯ Ϭ ϴϮ ϭ Ϭϯ ϭ ϭ ϱϲ Ϯ Ϭϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ й ϭθй ϭ ϭ Ϯ Ϯϭй й Ϯϭй й ϰ ^ƚăďŝůŝƚljͿ й ϭ ϭ й Ϯϭй ϭθй й Ϯ й й Ͳϭϲ Ϯϭй ϴ ^ƚăďŝůŝƚljͿ ϭ ϯй Ͳϭ ϭ ϭ ϭθй ϯϭй ϭθй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϲ ϭ ϭϲϰ ϱ ϭθϲ Ϯ Ϯϴϱ ϯϯϳ /Es d K Ϯϴϳ ϳdž ϯ DĂƌ Ϭϯ DĂƌ DĂƌ DĂƌ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ Ϯϴ d й ϯ й ϯ ϱϳ ϱϱ ϱϲ ϱθ ϲϭ ϲϯ ϲϭ ϲϱ d y Z d Ϯϴй ϯ Ϯ ϳϯ ϳϲ ϳϴ ϴϮ ϲϳ ϲϰ <>K' ϭ Ϭ ϭ Ϭ ϭ Ϭ ϭ ϭ ϭ ϯ ϭ ϯ ϭ ϲ ϭ ϰ ϭ ϱ Z Θ < s > ϭϯ dž Ζϭϲ ϭϯ ϭϭ ϭθ ϯϭ ϭθ ϱϯ /s hz Ϭ ϲϱ ϭ Ϳ /s 'Z Zdнϭ Ϳ Ϯ ϯϯ ϯϯ ϰϱ ϱϯ ϰϲ ϰϯ ϳϰ d Ϭ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϯͿ ϲ ϲϭ ϰϰ ϰϯ ϱϭ ϱϭ ϲϳ ϲϳ ϮϬϭϲ DW>Kz ^ ϭ Ϯϱ ϭͿ ϭ ϱθ ϭ ŽŵƉ ^ŌǁƌͲ^ƉĞĐ ŶƚĞƌƉƌƐ ' ZD Ez /ŶĐ ϳ W^ ƵĞ ϳ ϮϬĞ K, Breaks out on twice the average daily volume Company Overview NEMX provides Building Information Modeling (BIM) software for the architecture, engineering, and construction (AEC) sector, with a major portion of its revenues being derived from Europe. 9M 2017 segment revenue growth rates y/y: Design, 12.1%; build, 36.5%; media and entertainment, 8.7%; manage, 17.7%. ϲϯ ϬϬ hz нϳ Ϯϴ Double digit growth rates н Ϭ ϰϲ ϳϰ Ϭ ϳ Nemetschek Group (NEMX), based in Germany, is a software developer for the construction industry. The Company continues to expand by gaining market share in international markets. Ϭ Increasing cash flow/share, pretax margin and ROE ϭ Ϭϴ ϭ ϬϬ Ϭ Ϯ ϭ Strong demand for stock Good earnings profile ϭ Ϯϱ ϭ ^ŚĂƌĞƐ ϯd &ůžăƚ ϭθd Double digit annual EPS estimates; revised higher Ϭ ϳϭ Ϭ ϲϯ Sharp rise in R/S line with good A/D rating Ϭ ϱϰ Ϭ Ϭ ϰϲ ϭϱ ϭϯ ϭϭ Ϭ Ϭ Ϭ ϯϯ ϴ Ϭ Ϯ ϳ Ϭ Ϯϱ ϲ Ϭ Ϯϭ Ϭ ϱ ϰ ϲ Ϭ ϭθ ϰ Ϯ Increasing sponsorship Ϭ ϭϲ ϯ ϴ ϰϭϭ< ϯϲθ ϱ< ϮϬϬ< н Ϭ< O Neil Methodology Since its breakout on October 2, from a stage one consolidation base, the stock has risen 15% above its 50-DMA. The stock is extended from its base, 14% above its pivot price of NEMX.DE s RS Rating of 87, Up/Down volume ratio of 2.1, and A/D Rating of B+ indicate strong buyer demand and price outperformance relative to the market. The number of funds holding the stock is 194 as of September, up 23% y/y. As the stock is extended from its base, it does not present an ideal entry point. Investors should look for the stock to pull back to its 50-DMA before taking positions. Consensus estimates have the Company s EPS increasing by 22% to 1.49 and 23% to 1.83 in 2017 and 2018, respectively. Growth Drivers In Q3 2017, total revenues grew 14.3% y/y to 95.8M, below consensus expectations of 97M. Organic revenue growth was 12% y/y. Recently-acquired companies drofus and SDS/2 contributed 1.3M and 2.5M to Q revenues, respectively. EBITDA increased 18.1% y/y to 24.8M. Q net income increased 25.4% y/y to 15.1M. EPS wass in at 0.39, above consensus of Local Code: D Bloomberg Symbol: NEM:GR ISIN: DE < :ƵŶ ϭϯ &/E E / >^ Ϭ W^ hzͿ ^ĞƉ ϭϯ Ϭ ϭϯ ĞĐ ϭϯ Ϭ ϭϱ DĂƌ Ϭ ϭϰ :ƵŶ Ϭ ^ĞƉ Ϭ ϭϲ ĞĐ Ϭ ϮϬ Ϭ ϮϬ Ϭ ϭθ Ϭ Ϯϭ Ϭ Ϭ Ϭ ϭθ Ϭ Ϯϯ Ϭ Ϭ Ϯ Ϭ ^ĞƉ ϭϲ Ϭ ϯϭ ĞĐ ϭϲ Ϭ Ϯϴ DĂƌ Ϭ Ğ :ƵŶ Ϭ ϰϯğ Ͳ н W^ й, E' ϴ ϰϯ ϯ ^ > ^ D/> hzͿ н нϭϭй ͲϮ нϯ нϯ нϯϯй нϯϯй нϰϯй нй нϯϭй нϯ нϭ нϭ нϯ нϯϯй нθ нϯ Ͳ нϯϭйğ нйğ ϰϳ ϰ нϯй ϰϯ ϳ н ϰϰ ϴ н ϰϱ ϴ н ϱϭ ϳ н ϱϭ Ϭ нϭ ϱϭ ϯ нϭ ϱϭ Ϯ нϭϯй ϲϱ Ϭ нй ϲϲ ϲ нϯϭй ϴϯ ϴ нй ϴϯ нй ϭ нϭ ϯ ϱğ нϯğ ϲğ нйğ Ͳ нϱ ϰй W^ й ^hzwz/^ ϰϰ &he ^ ϰϭ Ͳϭϭ н ͲϮ нϯϯ ϯй ͲϲϮ ͲϳϮ Ͳϳϰ Ͳϳϰ ϭй Ͳϴϯ ϰй ϱϭ ϱ ϲϲ ϲϳ ϳϰ ϴϳ Ϯ ϭϭϯ ϭϯϳ ϲθ ϲ нй ϳ нй ϳ ϯ нй ϳϳ ϳ нϭ Ͳϱ ϯй нϰ н ϰй н ϰй ϭ ϯ ϭϰϯ ϭϰϲ ϱϯ ϮϬ Ɛƚ ϯ Ϭ ϴϰ ϬĞ Ğ ϱͳljƌ,ŝőś ϱϭ Ϭ ϱͳljƌ >Žǁ ϭϯ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϰdž ϭϱϰ ϱ ϯ ϬϮϱ ϱ ϰ ϲϱϯ ϱ ϯϯϱ ϲϳϲ ϲ Ϯϭϱ ϰ ϲ ϱϱ ϰϱϯ ϲ ϰθϯ ϴϲϯ ϲ ϰθϯ ϳ ϳ ϲϭϭ ϱϲ ϳ ϰ ϰϳ ϳ ϳϯϳ ϱ ϳ ϮϬ ϭϱϯ ϴ ϭϭϱ ϳ ϴ ϯϯϯ ϯϭϯ ϴ Ϯϱ ϲθθ ϴ ϴ Ϭϳϯ ϳ ϲ ϲϱϲ ϳ ϴϰϰ ϳϭ ^, Z ^, > z &he ^ Π ϮϬ t/>>/ D KΖE /> н K /E ^ĞƉ ϭϱθ ϭ ϯ ϳ ϳϰϯ ϳϯϳ ϴ ϭϱ ϴ ϯϳϳ Ϭ EĞŵĞƚƐĐŚĞŬ yğƚͿ E Dy Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ Ɖƌŝů Ϯϴ ϮϬ For 9M 2017, total revenues grew 18.1% y/y to 289.8M. Organic revenue growth was 13.9% y/y. The drofus and SDS/2 acquisitions contributed 3.9M and 8.2M to 9M 2017 revenues, respectively. The performance was driven by a double-digit revenue growth in all segments EBITDA increased 14.9% y/y to 76.5M. 9M 2017 net income increased 18.1% y/y to 42.8M. EPS came in at M 2017 revenues from the international segment (70% of total revenues) increased 21.7% y/y to 202M. The Company enjoys a market share of 80% in the Germany-Austria-Swiss region, and is expected to benefit from market consolidation. In October 2017, NEMX.DE acquired RISA, an U.S. based structural engineering software company. The target company has more than 10,000 users and provides solutions to top design firms in the U.S. RISA will form about 2% of the Company s total revenues. Looking Forward Full-year 2017 revenue guidance is 395M 401M, an increase of 17-19%. Organic growth to be 13-15%. EBITDA is targeted at 100M 103M, up 16-20%. Next Catalyst: Q earnings are expected to be released at the end of January,

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44 Temenos Group SWITZERLAND dğŵğŷžɛ 'ƌžƶɖ d DE, W^ dž ϯ ϴϮ ϯ ϱϯ ϯ Ϯ ϰ Ϯ ϲϱ Ϯ ϯϱ Ϯ Ϭϲ ϭ ϳϲ Source: Corporate Website ϭ ϰϳ ϭ ϯϱ ^t/^^ ^ džđś,ϭϭϭϱϯ нϰϭ ϴ ϭϭ W^ ZĂŶŬ ϳϰ ŽŵƉƵƚĞƌ ^ŌǁƌͲ&ŝŶĂŶĐŝĂů ƚğŵğŷžɛ ĐŽŵ DŬƚ ĂƉ,&ϯ Ϯ ^ĂůĞƐ,&ϱϮϱ ϲϯd ^t/d Z> E Ϭ 6WURQJ HVWLPDWHV UHYLVHG KLJKHU ϱϲ Company Overview Temenos products include applications related to core banking, channels, anti-money laundering, business intelligence/analytics, and private wealth management. More than 2,000 firms globally, including 41 of the top 50 banks, use Temenos to process transactions for more than 500M customers. Q revenue by segment: software licensing (including SaaS and subscriptions), 43%; maintenance, 37%; services, 20%. O Neil Methodology The stock is currently extended from an ideal entry position. We would encourage accumulation once the stock pulls back to its 10-WMA. The stock s Relative Strength (RS) line is at its all-time highs and its RS Rating is 89. Institutional sponsorship increased 33% y/y in September. The Company has strong EPS Rank of 89. Expectations call for EPS growth of 46% and 17% in 2017 and 2018, respectively. In Q3 2017, total revenues grew 14% y/y, driven by strong momentum across all KPIs, ahead of consensus estimates. Software licensing revenue was up 20% y/y. In Q3 2017, the Company signed 14 new customers. Growth Drivers On October 11, Openbank, the digital bank of Santander Group, selected Temenos Core Banking as its solution for retail and SME banking across global operations. Other Tier 1 signings in Q include Nordea, Standard Chartered, and Bank of Ireland. Local Code: V Bloomberg Symbol: TEMN:SW ISIN: CH нϭϭ ϰ ϰϲ ϭ ϬϬ Ϭ ϳ Ϭ ϴϴ Temenos is the leading provider of banking software to financial institutions. Driven by its broad and rich offerings, the Company is set to benefit from new client additions.,& нϱ +LJK 8 ' YROXPH ϭ ϭϯ ϭ ϭϯϭ ϭ d D EK^ 'ZKhW ' /^ ^t/d Z> E Ͳ ^ KDW Ez E' ' /E d, s >KWD Ed E D Z< d/e' K& E</E' ^K&dt Z ^z^d D^ d, KDW EzΖ^ ^ Zs/ ^ /E >h /DW> D Ed d/ke W Z&KZD E KWd/D/ d/ke /Ed 'Z d/ke D/E/^dZ d/ke D /Ed E E hw'z ^ dz /E/E' E ^hwwkzd &KZ /d^ ^K&dt Z ^K>hd/KE^ EEh > Ͳ E ϮϬϬϳ ϮϬϬϴ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϭ Ϯϳ ϭ ϮϬ ϭ Ϯϳ ϭ Ϭϭ ͲϬ ϯϲ Ϭ Ϭ Ϯ ϭ Ϯϱ Ϭ ϳ W^,& ϭ Ÿ Ϯ Ϯϳ Ÿ ^, &>Kt ^,Z,& ϭ ϴϰ Ϯ Ϯ Ϯ ϲϭ Ϯ Ϭϱ ϭ ϮϬ ϭ ϲϯ Ϯ ϭϰ Ϯ ϰϰ Ϯ ϳϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯ ϭ й Ͳϯй ϴй ϭθй Ϯϯй Ͳϭϱ ϯ Ϯϳ ^ƚăďŝůŝƚljͿ ϰ ϯϯй Ϯϴй ϭ Ͳ ϭθй й ϭθй Ͳϭϱ ϯ Ϯϳ ^ƚăďŝůŝƚljͿ ϭй ^DZ Z d/e' ϰ ϭ Ͳϴй ϭ Ͳϭ ϭй ϯй й KDW Z d/e' ^ > ^ D/>Ϳ,& ϯϳϲ ϰ ϰϭϭ ϰϲϰ ϰϭϲ Ϭ ϰϯϯ ϰ ϱϯϯ /Es d K DĂLJ Ϯϳ :ƵŶ Ϭϯ :ƵŶ :ƵŶ :ƵŶ :Ƶů Ϭϭ :Ƶů Ϭϴ :Ƶů ϭϱ :Ƶů Ϯϭ d й Ͳϭϱ ϰ ϴϮй ϭй ϲϳ ϲϳ ϲϰ ϲ ϲθ ϲϭ ϲϯ ϲϰ ϲϰ d y Z d Ͳϭϱ ϭ ϭ ϱ ϭϲ ϭθϯ ϮϬϬ ϱ Ϯϯϭ Ϯ Ϯϱϳ <>K' Ͳϭϱ ϭ ϯ ϭ ϱ ϭ ϯ ϭ ϰ ϭ ϯ ϭ ϯ ϭ ϯ ϭ ϭ ϭ ϯ Z Θ < s > ϴϴdž Ζϭϱ ϯϱ Ϯϯ Ͳϭ Ϯ ϳ ϯϭ /s,& Ϭ ϰϱ Ϭ ϴйͿ /s 'Z Zdнϭϴй ϱͿ ϱ ϱ ϰ ϯ ϭ ϴϱ ϴϳ ϴϰ ϴ d Ϭ ϳ ϳϱ ϬϬͿ >W, Ϭ ϮϬ ͲϬ Ϳ ϯϯ ϯϯ ϯϭ ϯϭ Ϯϴ ϯϭ ϯ DW>Kz ^ ϰ ϰϭϭ ϭͿ ϭ ^ŚĂƌĞƐ D &ůžăƚ ϱϯd D'Dd ŽǁŶƐ ϴ н Ϭ ϳϲ Ϭ ϳϭ Ϭ ϲϱ Ϭ ϱϲ Ϭ Ϭ ϰϰ 5LVLQJ 5 6 OLQH ϭϱ Ϭ Ϭ ϯϱ Ϭ ϯϯ ϭϯ ϭϭ Ϭ Ϯ Ϭ Ϭ ϴ Ϭ Ϯϭ ϳ Ϭ ϭθ ϲ Ϭ ϭϰ Ϭ ϰ ϴ ϰ ϰ,qfuhdvlqj VSRQVRUVKLS ϯd ϭ ϱd ϭd нϱθй Ϭ< DĂƌ ϭϭ :ƵŶ ϭϭ &/E E / >^ ͲϬ ϭϱ ͲϬ Ϯϳ W^,&Ϳ ^ĞƉ ϭϭ Ϭ ϭϱ ĞĐ ϭϭ ͲϬ ϭϭ DĂƌ ϭϯ ͲϬ ϭϲ :ƵŶ ϭϯ Ϭ ϬϬ ^ĞƉ ϭϯ Ϭ ĞĐ ϭϯ Ϭ ϯϳ DĂƌ Ϭ Ϭϱ :ƵŶ Ϭ ϭϭ ^ĞƉ Ϭ Ϯϭ ĞĐ Ϭ ϱϰ Ϭ ϭϱ Ϭ Ϭ Ϭ ϲϳ Ϭ ϬϬ Ϭ ϭϭ Ϭ Ϯϴ Ϭ ϱθ Ͳϭ Ͳϴй W^ й, E' ϲ Ϭ ϰ ϱ ^ > ^ D/>,&Ϳ Ͳϯй Ͳ Ͳϱ Ϭ ϯ Ͳ Ͳϭй ϭϭϱ ϰ ͲϮϭй Ͳ ϭ Ϯ Ͳ н ϱ Ͳ Ͳϯϯй ϱ ϯ н нϰϯ ϭ ϭ нθй нϭй ϲ ϱ н нϰ ϭ ϰ н нϯϭ ϳ ϱ нϭй нϳϯй ϲ Ͳϰй н ϱ ϰ н нй ϭϯ ϳ Ͳϭй Ͳ ϲ ϴ Ͳϭй Ͳй ϯ ϳ нϰй нϭϭ Ϭ ϴ Ͳϰй нϭ Ϯϱ ϱ нϭϰ Ͳй ϭϲ ϰ нϯϭй ϯ ϯϭd Ͳϲϰ Ϯϴ ϮϳD ͲϮ Ϯй Ϯϯϳ D нϭθ ϮϬ ϮϴD нϭ ϴй Ϯ ϯϯd Ͳϭϲ ϲ ϯϯd нϰ ϭй Ϯ ϯϯd нϭϯ Ϯϱϭ D Ϭ ϯ ϯϯd ͲϮ Ϯϳϯ ϯϭd Ͳ ϰй Ϯϯ ϯϭd нθ ϰй Ϯϯ D нθ ϭй Ϯϳϲ ϮϳD нϭϲ ϯ ϮD W^ й ^hzwz/^ ϯϭ ϰ &he ^ ϯϯd ϯ ϰϯϱ ϬϮϱ ^, Z ^, > z &he ^ ϯϲϭ ϯϱd ϯϳϯ ϯd Π ϮϬϭϲ t/>>/ D KΖE /> н K /E Ϯϳϱ ϮϳD Ϭ Ğ ϭ ϬĞ нϯϭйğ Ϭ ϯϳğ нϯϯğ ϴ ϯğ ϱθ ϮϬϭϲ Ɛƚ Ϯϴ ϱͳljƌ,ŝőś ϱϱ ϱͳljƌ >Žǁ Ϯϯ ǀƐ /ŶĚ ǀŐ ϭ ϴdž ϯϯϯ D ϯϳϲ ϯϭd ϯ ϯϯd dğŵğŷžɛ 'ƌžƶɖ d DE,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ :ƵůLJ Ϯϭ ϮϬϭϲ Ĩ dśƶ :ƵůLJ Ϯϭ ϮϬϭϲ The Company acquired Rubik in May, which will help it provide a complete vertically integrated solution for the Australian banking market. Temenos is currently leveraging Rubik products into the Asia-Pacific client base. The U.S. is expected to spend $17B in 2017 on the Fintech sector, which is expected to grow at a CAGR of 10% until Temenos has set a mid-term target of 25% for total revenue contribution from North America. During the quarter, the Company won high profile greenfield digital bank for core banking in the cloud. Temenos customers are more profitable than their peers: over a seven-year period on average, they enjoyed a 31% higher return on assets, a 36% higher return on equity, and an 8.6% lower cost/income ratio than banks running legacy applications. On December 13, 2016, Temenos signed an agreement with Commerce Bank, a mid-western regional bank with $25B in assets, to provide core deposit banking solutions. Looking Forward With the signing of Openbank, the Company has raised its 2017 total software licensing growth to % (from 15-20%) and total revenue growth to % (from 10-13%). Next catalyst: The Company is expected to report Q earnings on February 13,

45 SWITZERLAND dğŵğŷžɛ 'ƌžƶɖ d DE, W^ ϯ dž ϲ ϭϱ ϱ ϲϰ ϰ ϴϳ ϰ ϯϲ ϯ ϴϱ ϯ ϯϯ ϯ Ϭϴ Ϯ ϴϮ Ϯ ϱϲ Ϯ ϯϭ нϰϭ ϴ ϭϭ W^ ZĂŶŬ ϴϳ ^t/^^ ^ džđś,ϭϭϭϱϯ ƚğŵğŷžɛ ĐŽŵ ŽŵƉƵƚĞƌ ^ŌǁƌͲ&ŝŶĂŶĐŝĂů Temenos Group DŬƚ ĂƉ,& ϯϲ ^ĂůĞƐ,&ϲϴϰ ϱϭd ^t/d Z> E ^ŚĂƌĞƐ ϳϭD &ůžăƚ ϲϭd W^ ƵĞ ŝŷ ϭϭ ĂLJƐ ĞͿ K, Ͳϴй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ Ϭ d D EK^ 'ZKhW ' /^ ^t/d Z> E Ͳ ^ KDW Ez E' ' /E d, s >KWD Ed E D Z< d/e' K& E</E' ^K&dt Z ^z^d D^ d, KDW EzΖ^ ^ Zs/ ^ /E >h /DW> D Ed d/ke W Z&KZD E KWd/D/ d/ke /Ed 'Z d/ke D/E/^dZ d/ke D /Ed E E hw'z ^ dz /E/E' E ^hwwkzd &KZ /d^ ^K&dt Z ^K>hd/KE^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϴϭ Ϭ ϴϱ Ϭ ϴϭ ͲϬ Ϭ Ϯϴ Ϭ ϳϱ ϭ Ϭϰ Ϭ ϴ ϭ ϱϱ W^ hz ϭ ϮϴйŸ Ϯ ϯϲ йÿ ^, &>Kt ^,Z hz ϭ ϱϱ ϭ ϳϲ ϭ ϲϯ Ϭ ϭ ϯϱ ϭ ϳϱ Ϯ Ϭϯ Ϯ ϱϰ ϯ ϭϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ й Ͳϯй ϴй ϭθй Ϯϯй Ϯϭй Ͳ й ^ƚăďŝůŝƚljͿ й ϯϯй Ϯϴй ϭ Ͳ ϭθй й ϭθй Ϯ Ͳ ϯ Ϯϯ ^ƚăďŝůŝƚljͿ ϭϭй ϯ Ͳ ϯ Ͳϴй Ϯй ϭй Ϯй й й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯϲ Ϯ ϯϳϭ ϯ ϴ ϯϱϯ ϯϱθ ϰθϭ ϱθϱ /Es d K ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď Ϭϭ d й ϴϮй ϭй ϲ ϳϲ ϳϲ ϳϯ ϳϳ ϳϳ ϳϳ ϳϰ ϳ d y Z d ϭ ϭϯй ϯϱϯ ϭ ϱ ϯ ϯϳ ϯϳϭ ϯϲϯ ϰϭϲ ϰϭθ <>K' ϭ ϯ ϭ ϯ ϭ ϭ ϭ ϭ ϭ ϭ ϭ Ϭ Ϭ Ϭ ϭ Ϭ Z Θ Ϯϴ Ϯ < s > ϭϭdž Ζϭϲ ϯϱ ϮϬ ϮϬ Ϯϭ Ϯϱ ϭθ ϴ /s hz Ϭ ϰϳ Ϭ ϰйͿ /s 'Z Zdнϭ ϱͿ ϲ ϱ ϱ ϰ ϰ Ϯ ϭ ϭ ϯ d Ϭ ϴϰ ϬϬͿ >W, Ϭ Ϭ ϭϰͿ ϭϯ ϭϯ ϭϭ ϳ ϳ ϳ ϲ ϰ ϮϬϭϲ DW>Kz ^ ϰ ϯϱϲ ͲϭйͿ Ϭ ϭ ϭ Ϯ ϭ ϭϯϭ нϯ,& нϯ ϱ ϭ Ϭ Ϯ Ϭϱ ϭ ϴϱ ϭ ϳ ϯ н ϭ ϱϰ ϭ Ϯϴ ϭ ϭθ ϰϲ ϭ Ϭϴ Ϭ ϳ Ϭ ϴϳ Ϭ ϳϳ Ϭ ϲϳ Ϭ ϲϯ Ϭ ϱϲ Ϭ ϰ Ϭ ϰϰ Ϭ ϭϱ Ϭ ϯϯ Ϭ ϯϭ Ϭ Ϯϴ ϭϯ ϭϭ Ϭ Ϭ Ϯϯ ϮD ϭ ϳD н Ϭ< ϰϭϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ Ϭ Ϭϰ W^ hzͿ нϰϯϯй нϭй W^ й, E' Ϯ ϳ ϰ ^ > ^ D/> hzͿ нθй н нϭθ нϭ ϴй W^ й ^hzwz/^ ϮϬ &he ^ ϮϬϳ Ϯϳ ϴ ϴϭϭ ϯϯd ^, Z ^, > z &he ^ :ƵŶ Ϭ Ϭ ϴϰ ϯ нϯй Ͳϭϲ Ϯ ϯϭd ^ĞƉ Ϭ нϭϭϯй ϴϮ ϰ Ͳ нϰ ϭй Ϯϯϳ ϯϭd ĞĐ Ϭ ϰϰ нϰ ϲ ϰ нϯй нϭϯ ϲ D Ϭ ϭϯ нϯϭ ϭ нϭй Ϭ Ϯϱϲ ϯϯd Ϭ ϭϱ нϲ ϴϮ Ϭ Ͳϯй ͲϮ ϳ ϯϭd Ϭ ϮϬ нϭθй ϴϳ ϰ н Ͳ ϰй Ϯϴϲ ϯϭd Ϭ ϱϲ нϯ ϳ нϭй нθ ϰй Ϯϴϳ D Ϭ ϬϬ Ͳ Ϯ ϯ нϭ Ϯ ϮϳD Ϭ Ͳϯϯй ϭϭϰ ϯ нϯ нθ ϭй Ϯ ϮϳD Ϭ Ϯϴ нϰ ϭϯθ ϳ нϰ нϭϲ Ϯϳ ϮD Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϱϰ Ͳϰй ϭϱϱ ϴ нϰϰй ϯϯϳ D Ϭ Ϭϴ ϭ ϲ нϯ Ͳ ϯ ϯϭd Ϭ Ϯϴ нϭй ϴ ϱ нϯϭй Ϯ ϯϭd ^ĞƉ ϭϲ Ϭ ϰϯ нϱϰй ϭϰϯ ϳ нϭϯй нϲ ϰϰϱ ϯϯd ĞĐ ϭϲ Ϭ ϳϱ нϯ ϴ нϭ DĂƌ Ϭ ϭϱ нθ ϯ Ϭ нй :ƵŶ Ϭ ϯϯ н ϭϱϱ ϯ нϭϯй ϰ ϯϭd ϱϰϭ ϯϯd ϱϰ ϯϭd ^ĞƉ Ϭ ϰϳ н ϭϱϳ ϭ н нϯ ϲ ϯϱd ĞĐ Ϭ ϴϭĞ нθйğ ϭθϱ ϲğ нϯйğ DĂƌ ϭθ Ϭ ϯϭğ нğ ϯ ϮĞ Ğ ϮϬϭϴ Ɛƚ ϰθ ϮϬ Ɛƚ Ϯϳ ϱͳljƌ,ŝőś ϱϰ Ϭ ϱͳljƌ >Žǁ Ϯϯ Ϭ ϲϲϱ ϯϳd ǀƐ /ŶĚ ǀŐ Ϯ ϯdž dğŵğŷžɛ 'ƌžƶɖ d DE,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϴ -43- Technology: Computer Sftwr-Financial

46 Evolution Gaming Group SWEDEN Source: Corporate Website A/D and RS Ratings and Industry Group Rank improving and at two-month highs Excellent pre-tax margin and ROE Strong earnings estimates revised higher Impressive sales growth rates 40-week MA Clears long consolidation Evolution Gaming (EVOG) is a leading B2B provider of live casino systems in Europe. The Company should benefit from its dominant position in the fastgrowing live casino market. Company Overview Evolution Gaming develops and supplies hardware and software products that aid in streaming casino games played live over the internet to gaming operators. Its customers include land-based and state-owned casinos. A majority of EVOG s revenues consist of commission fees and fixed fees for dedicated tables, which are paid monthly by the operators. O Neil Methodology The stock broke out from an 8-week cup on October 25. It is trading 12% above its pivot of SEK 537. For Q3 2017, operating revenues grew 56% y/y to 45.7M, on the back of increased activity from customers in existing studios. Bet spots increased 80% y/y. The EPS increased 126% y/y to 0.47 while the EBITDA increased 103% y/y to a record high of 21.8M. EBITDA margin expanded 10.9% to 47.7% in Q3 2017, from 36.8% in Q Revenue and EPS growth beat consensus estimates. The stock s RS Rating of 93 indicates price outperformance relative to the market. Its Up/Down Volume ratio of 1.3 indicates strong recent demand for the stock. The number of funds holding the stock is 81 as of September, up 12.5% y/y. Consensus estimates have the Company s EPS increasing by 85% to SEK and 23% to $18.91 in 2017 and 2018, respectively. Accelerating sales growth along with strong earnings growth 10-week MA RS line trending sharply higher and excellent A/D Rating High volume supports move to new highs Growth Drivers The Company was cleared to establish its next major studio in Tbilisi, Georgia, expected to be operational in Q The Company formed an agreement with Canadian operator British Columbia Lottery Corp to enter the Canadian online casino market. To further expand its operations, the Company plans to build a new live casino studio in Vancouver, Canada in early Also, just after Q3 2017, the Company entered into an agreement with Bulgaria s largest regulated operator National Lottery AD. A Live Casino service launch is due in Q The Company aims to have about 400 tables in operation by the end of 2017 to further bolster its operations. This would make it the largest European casino in terms of tables. Given the 8B land-based casino market there is room to expand with growth in tables, which will help drive its existing customer base. Looking Forward The FIFA World Cup, to be held next in 2018, has historically led to high levels of activity amongst the Company s clients. From 2015 to 2018, the online live casino market is estimated to have a CAGR of 25 30%. The Company s market share is expected to increase to 75% in 2017 from more than 50% currently. Next Catalyst: Q earnings are expected to be released at the end of January, Local Code: SE:EVO Bloomberg Symbol: EVO:SS ISIN: SE

47 SWEDEN ǀŽůƵƟŽŶ 'ĂŵŝŶŐ 'ƌžƶɖ sk' ^ W^ ϯϱ dž ϯϳ ϭϰ Ϯ ϯϭ ϰϯ Ϯϴ ϱϳ Ϯϱ ϳϭ ϴϲ ϮϬ ϬϬ ϭϰ ϭϰ Ϯ ϭϰ ϭϰ ^dk <,K>D džđś ^ ϬϬϬϲϴϲ ŽŵƉƵƚĞƌ ^ŌǁƌͲ'ĂŵŝŶŐ ^ƚžđŭśžůŵ ^t E W^ ZĂŶŬ ϴ Evolution Gaming Group DŬƚ ĂƉ ^ <Ϯϭ ϰϭ ^ĂůĞƐ ^ <ϭ ϱϲ ^ŚĂƌĞƐ ϯϲd &ůžăƚ ϮϯD W^ ƵĞ ŝŷ ϭϰ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ϭϯϭϭ ϭϭ sk>hd/ke ' D/E' 'ZKhW Wh >Ϳ /^ ^t EͲ ^ KDW Ez d/s /E d, /Ed ZE d ^ Zs/ ^ ^ dkz /d s >KW^ WZK h ^ D Z< d^ E >/ E^ ^ /Ed 'Z d h^/e ^^ͲdKͲ h^/e ^^ Ϯ Ϳ >/s ^/EK ^K>hd/KE^ &KZ ' D/E' KW Z dkz^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϯϯ ϰθ ϲϳ Ϭ ϯϯ Ϭ ϱϳ Ϭ ϴϳ W^ hz ϭ ϲ ϰйÿ Ϯ йź ^, &>Kt ^,Z hz ϰϭ ϯϳ ϴϰ Ϭ ϰϱ Ϭ ϳϱ ϭ Ϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯ Ϯ Ϯ Ϯϴй ϯ Ͳ ϭ ^ƚăďŝůŝƚljͿ ϱθй ϱϯй ϲϯй ϲ ϱ Ͳ Ͳϲ ^ƚăďŝůŝƚljͿ ϰ Ϯ Ϯϯй ϲ ϰ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϯϯ ϰϳ ϳϴ ϭϭϰ /Es d K ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϭϯй ϴϲ ϴϲ ϴϲ ϴϲ ϴϲ ϴϳ ϴϱ ϴϱ ϴϰ d y Z d ϴй ϴй ϳ ϰ ϭ ϭϲθ ϭϱϳ ϭϲϯ ϭϲϲ ϭϭϲ <>K' Ϭ ϴ Ϭ Ϭ ϴ Ϭ Ϭ Ϭ ϳ Ϭ ϳ Ϭ ϳ ϭ ϱ Z Θ < s > ϯϲ ϰϳdž Ζϭϲ Ͳϴ ϯ Ϯ ϯ ϰ Ͳϴ /s hz Ϭ ϰϯ Ϭ Ϳ /s 'Z Zd ϰ ϱ ϲ ϲ ϰ ϰ ϱ ϯ ϭ d Ϭ ϭ ϳ ϬϬͿ >W, Ϭ Ϯ Ϭ ϭϱͿ ϭϲ ϭϰ ϭϰ ϭθ ϭϭ ϴ Ϯ Ϯϴ ϯϭ ϮϬϭϲ DW>Kz ^ Ϯ ϰϭϭ йͿ ϬϬ Ϭ Ϭ Ϭ Ϭ ϱϱ ϬϬ ^ < Ͳϯϯ Ͳϱ ϯϯй Ϭ ϰ ϭϯ ϬϬ Ϭ ϴϲ ϭ Ͳ ϳϭ ϯ Ϭ ϴ ϱϳ Ϭ ϳ ϰϯ ϲ ϴϲ ϲ Ϯ Ϯ Ϭ Ϭ ϱ ϰϯ Ϭ ϰ ϴϲ ϭ ϰ Ϯ ϭ ϯ ϳϭ ϯ ϰϯ ϯ ϭϰ ϭ ϭϯϭ ϭ Ϯ ϴϲ Ϭ Ϯ ϱϳ Ϯ Ϯ Ϯ ϬϬ ϭ ϳϭ ϭ ϰϯ ϭ ϯϭ ϰϲ ϭ ϮϬ ϭd Ϭ< ϰϰ ϲ< Ͳϯ ϮϬϬ< ĞĐ ϭϯ DĂƌ &/E E / >^ ϯϯ ϰθ W^ hzͿ W^ й, E' ϯϭ ϲ ^ > ^ D/> hzͿ :ƵŶ ^ĞƉ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ ĞĐ ϲϳ ͲϮ Ϭ нϯ Ϭ Ϭϲ ϳ Ϭ Ϭϴ ϭϭ ϱ Ϭ Ϭ ϭϯ ϱ Ϭ ϭϭ Ϭ Ϭϰ Ͳϯϯй ϭϱ ϲ нϰ Ϭ нϭϭϯй ϭθ ϯ нϱ Ϭ ϭϲ Ϭ ϮϬ Ϭ Ϭ Ϯϭ нϳθй нθϯй нϰϱ нй ϲ ϮϬ Ϭ Ϯϯ ϴ ϴ нϱ нϳ нϱ нϰ нϭ н Ͳϰ Ϯϱ ϯ ϲ ϲϳ ϳϮ ϱ ϯ ϴ ϱ ϯ ϭϲ ϳ Ϭϲ ϭϰ ϳ ϲ ϲϭ ϳ ϯϯ Ϭϳϳ ϳ ϴϭϴ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ^ĞƉ ϭϲ Ϭ ϮϬ нϯ Ϯ ϭ нϰ ϱϯϳ Ϯ ĞĐ ϭϲ Ϭ Ϯϱ нϯ нϰ DĂƌ :ƵŶ Ϭ ϯϱ Ϭ ϰϭ нϱ н ϯ ϲ ϲ нϱ нϱ нϯϭ ϭй ϲϰ ϲϲ ϴϭ D ϲ ϳ ϳ ϱ ^ĞƉ Ϭ ϰϲ н ϰϱ Ϯ нϱ нϭϯ ϴй Ϭ ϭϭd ĞĐ Ϭ ϰϳğ нθθйğ ϯğ нϰϰйğ DĂƌ ϭθ Ϭ ϱϭğ нϰğ ϱϯ ϳĞ нϯğ ϰϱ ϮϬϭϴ Ɛƚ Ϯϴ ϮϬ Ɛƚ Ϯϯ ϴ ϱͳljƌ,ŝőś ϲϯ Ϭ ϱͳljƌ >Žǁ Ϯϱ Ϭ ϴ ϭϭd ǀƐ /ŶĚ ǀŐ ϭ ϯdž ǀŽůƵƟŽŶ 'ĂŵŝŶŐ 'ƌžƶɖ sk' ^ Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -45- Technology: Computer Sftwr-Gaming

48 Sophos Group UNITED KINGDOM Source: Corporate Website Sophos Group (SOPH.GB) is a leading provider of cloud-enabled software security solutions. With a differentiated business model, the Company holds a competitive edge in the market. Company Overview The Company s product portfolio consists of solutions designed to protect the client s IT infrastructure at the network level and the individual system level, with end-user/end-point protection. It operates a business-to-business model and has a client base of more than 260,000 organizations consisting of more than 100M users from a variety of industries. Billings in H1 FY 2018 by product type: end-user, 49%; network, 47%; others, 4%. O Neil Methodology The stock gapped up ~5% on better-than-expected H1 FY 2018 results. It continues to trade along its rising 50-DMA and is making higher highs. The stock is under heavy accumulation, as indicated by its Up/ down Volume ratio of 2.1 and an A/D Rating of B. H1 FY 2018 revenue grew 16% y/y to $298.1M, above consensus expectations of $292M, driven by a 21% y/y increase in subscription revenue. Billings increased 22% y/y to $341.5M in H1 FY 2018 and 29% y/y in Q2 FY This was driven by an exceptionally strong performance in the end-user segment (billings up 39% in H1 FY 2018). The catalyst was the huge demand for Intercept X and Sophos Central. Growth Drivers Sophos uses a partnership program through which it utilizes its 26,000 channeled resellers and managed service providers to drive sales. This provides Sophos an advantage, as mid-market enterprises generally rely on their channel partners for product advice. Healthy demand with up/down volume ratio well over 1.0 Increasing sponsorship Solid sales growth 10-week MA Excellent earnings estimates reflecting high growth Sales growth expected to accelerate Stock break out on 2x average volume 40-week MA RS line at new high and A/D Rating reflects accumulation Earnings growth to jump in Q1 In February, the Company announced the acquisition of Invincea s commercial software products division. The addition of Invincea complements Sophos s existing end-point product portfolio, which Sophos considers as a strong growth area. The Company s net renewal rate (including cross-sell and up-sell) increased 106% y/y. It expects to roll-out additional network products onto the platform over the next months, which should further underpin improved cross-sell rates for the group. The cybersecurity market has grown approximately 35x in the past 13 years and is estimated to grow from $122.45B in 2016 to $202.36B by 2021, a CAGR of 10.6%. Cybercrime is expected to escalate and cost businesses globally more than $6T annually by Looking Forward The Company raised its full-year FY 2018 outlook: 20 22% billings growth with a bps improvement in cash EBITDA margin. The Company is expected to announce its Q3 FY 2018 results on February 6, Local Code: UK:SOPH Bloomberg Symbol: SOPH:LN ISIN: GB00BYZFZ

49 UNITED KINGDOM W^ ϮϬ dž ϴϱ ϬϬ ϳϱ ϬϬ ϲϱ ϬϬ ϬϬ ϱϱ ϬϬ ϬϬ ϰϱ ϬϬ ϰϭ ϬϬ ϯϱ ϬϬ ^ŽƉŚŽƐ 'ƌžƶɖ ^KW, ' >KE KE džđś ' ϬϬ z & ϭθ нϰϰ ϭϯϯϱ ϱϱϯϯ W^ ZĂŶŬ ϰϭ ƐŽƉŚŽƐ ĐŽŵ ŽŵƉƵƚĞƌ ^ŌǁƌͲ^ĞĐƵƌŝƚLJ Sophos Group DŬƚ ĂƉ άϯ ϴ ^ĂůĞƐ άϰϰϳ ϱd ďŝŷőěžŷ he/d </E' KD /ŶĐ ^ŚĂƌĞƐ ϰϲϳd &ůžăƚ ϯϯϯd W^ ƵĞ ŝŷ ϴ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ^KW,K^ 'ZKhW W> KW Z d ^ ^ E /Es ^dd Ed KDW Ez &KZ d, ^KW,K^ 'ZKhW /d /^ WZKs/ Z K& >Kh Ͳ E > E Ͳh^ Z E E dtkz< ^ hz/dz ^K>hd/KE^ DKZ EEh > Ͳ D Z E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ͲϬ Ϯϭ ͲϬ ϭϱ ͲϬ ϭϭ ͲϬ ϭϰ ͲϬ Ϭ W^ hz Ϭ Ϭϱ ϭϱź Ϭ Ϭ й ^, &>Kt ^,Z hz Ϭ Ϭ ϭϭ Ϭ Ϭϱ ͲϬ Ϭϭ ͲϬ Ϭϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳϰ Ͳй ͲϭϮй Ͳ Ͳ Ͳ Ϯϭй Ͳϯ Ͳ Ϯ ϯϯй ϭθй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯϳϭ Ϯϴϳ ϯ ϰϭϯ ϰϳϱ /Es d K ϲ ϲdž ϰϳ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ ϮϬ Ϯϯ ϲϱ ϲϰ ϲϰ ϲϰ ϲ ϲ d y Z d Ͳ ϭ ϲϳϭ ϭ ϳϳϯ ϭ ϴϮϯ ϭ ϴϯϭ ϭ ϭϯ ϭ ϴ Ϯ ϬϬϭ ϭ ϲϱ ϭ ϱϱ <>K' Ͳ Ϭ ϲ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϲ Ϭ ϳ Ϭ ϲ Ϭ ϴ Ϭ ϴ Z Θ Ϯ < s > ϰϰ ϲϳdž Ζ Ͳϯϱ Ͳ Ͳϯϲ Ͳϯϲ Ͳϱ ϯ Ͳϱ Ϯ Ϯ /s hz Ϭ ϬϰϬ Ϭ Ϳ /s 'Z Zd ϱ ϱ ϱ ϲ ϲ ϲ ϳ ϲ ϲ d Ϭ ϳϲ ϯ ϬϬͿ >W, Ϭ Ϭ ϭϰͿ ϭϰ ϭϱ Ϯϭ ϭϯ ϴ ϰ ϮϬ DW>Kz ^ ϯ ϭ ϭͿ ϭϯϭϭ ϭϭ ϬϬ Ϭ Ϭ Ϭ ϲϯϳ ϬϬ ϬϬ Ϭ Ͳϯ ϬϬ Ϯϱ ϬϬ Ϯϯ ϬϬ ' y ͲϬ ϰ Ϭ ϰ Ϯϭ ϬϬ Ϭ ϲ н ϬϬ ϬϬ ϯ Ϭ ϭϱ ϬϬ Ϭ ϬϬ ϭϯ ϬϬ ϭϭ ϬϬ Ϯ Ϭ Ϭ Ϭ ϴ ϭ ϳ ϭ ϲ ϲ ϬϬ ϱ ϭ ϭϯϭ ϭ ϱ ϬϬ Ϭ ϰ ϰ ϬϬ ϯ Ͳϴ ϲϯϭ ϮϬD D ϱd ϰ ϴD ϮD Ͳϱ ĞĐ ϭϯ DĂƌ &/E E / >^ ͲϬ Ϯϭ W^ hzͿ W^ й, E' ^ > ^ D/> hzͿ Ϯ ϲ :ƵŶ ^ĞƉ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ ĞĐ ͲϬ ϭϱ нϯ Ϯϴϲ н ͲϬ Ϭϰ ϭϲϰ ͲϬ Ϭϴ ϮϬϱ ϯ ͲϬ Ͳϭϱ ϮϬϲ ϯ нϯ ϭ ϴϰD ϭϲϯ ϲd ϱ ϱd ϭθϯ ϮD ^ĞƉ ϭϲ ͲϬ Ϭϳ нϯ Ϯϭϴ ϯ н ĞĐ ϭϲ ϭϯθd Ϯϭϭ ϮD DĂƌ ͲϬ ϬϮ нϲ Ϯϱϲ ϲ нй :ƵŶ Ϯ ϭϯd Ϯϱϳ D ^ĞƉ ͲϬ Ϭϳ ϭ ϲ Ͳй ĞĐ DĂƌ ϭθ Ϭ ϬϱĞ нϯϱğ ϬĞ нğ ϮϬϭϴ Ɛƚ Ϯ ϮϬ Ɛƚ ϴϰ Ϭ ϱͳljƌ,ŝőś ϱͳljƌ >Žǁ ϲϱ ϰϭd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ͲϬ Ϭϱ нй Ϯ ϰ нϯй Ϯ ϲd ǀƐ /ŶĚ ǀŐ ^ŽƉŚŽƐ 'ƌžƶɖ ^KW, ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -47- Technology: Computer Sftwr-Security

50 Nordic Semiconductor NORWAY EŽƌĚŝĐ ^ĞŵŝĐŽŶĚƵĐƚŽƌ EK EK W^ ϲϱ dž Ϯ ϲϯ Ϯ ϯϭ Ϯ ϬϬ ϭ ϴϱ ϭ ϲ ϭ ϱϰ ϭ ϭ Ϯϯ ϭ Ϭϴ нϰϳ Ϯ Ϯϱϭ W^ ZĂŶŬ ϱϲ K^>K džđś EKϬϬϬϱϱϭ ŶŽƌĚŝĐƐĞŵŝ ĐŽŵ ůğđͳ^ğŵŝđžŷěđƚžƌ &ĂďůƐƐ DŬƚ ĂƉ EK<ϳ ϯ ^ĂůĞƐ EK<ϭ ϴϲ dƌžŷěśğŝŵ EKZt z EKZ / ^ D/ KE h dkz ^ /^ EKZt zͳ ^ KDW Ez E' ' /E d, s >KWD Ed E ^ >> K& /Ed 'Z d /Z h/d^ E Z > d ^K>hd/KE^ &KZ ^,KZdͲZ E' t/z > ^^ KDDhE/ d/ke DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϯϱ Ϭ Ϭ ϳ Ϭ ϲϯ Ϭ ϲϯ Ϭ ϯϱ Ϭ ϲϯ ϭ ϮϬ Ϭ ϯϯ W^ EK< Ϭ ϳϮ ϭϭθйÿ ϭ ϴϭйŸ ^, &>Kt ^,Z EK< Ϭ ϰϭ Ϭ ϯϱ ϭ ϰϭ Ϭ ϱ Ϭ Ϭ ϱϰ ϭ Ϯϳ Ϯ Ϭ Ϭ ϰϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭ й й ϭθй ϭϭй й й ϰй Ͳ Ͳй ^ƚăďŝůŝƚljͿ Ϯϭй ϭθй ϭθй ϱ ϯϯй Ϯ Ϯϭй й Ͳ ϰй ϱϳ ^ƚăďŝůŝƚljͿ й ϭθй Ϯ Ͳϭ Ͳϭй Ͳϰй ϰϰй ϰθй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ EK< ϯ ϰ ϴϱϴ ϳϳϯ ϳϲϮ ϳ ϭ Ϭ ϭ ϱϲϲ ϭ ϲϱϲ /Es d K Ϯ ϳdž ϮϬ EŽǀ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ d й ϱϲ ϱϱ ϱϲ ϱϳ ϱϲ ϱϲ ϲϱ ϲθ ϲϱ d y Z d Ϯ ϯ Ϯ Ϯ ϮϴϮ Ϯϴϯ Ϯϴϯ Ϯϳϯ ϲ Ϯϱϳ Ϯϳϯ ϰ <>K' Ϯϭ ϰ < s > ϳ ϳϴdž Ζϭϲ ϭ Ϯ ϭ ϭ ϭ Ϯ ϭ Ϯ ϭ Ϯ ϭ ϰ ϭ ϳ Ϯ ϭ Ϯ Ϯ Z Θ /s 'Z Zd Ϯϯ Ϯϱ ϰϰ ϱϲ /s EK< EŽŶĞ Ϭ Ϯ ϭϯ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϰͿ ϳϯ ϲϯ ϳϱ ϳ ϳϮ ϳϯ ϴϲ ϴϲ ϴϳ d ϯϭ ϯϯ Ϯϭ ϮϬ ϭϱ ϭϯ ϭϭ ϮϬϭϲ DW>Kz ^ ϱϯϯ ϭͿ Source: Corporate Website W^ ƵĞ Ϯ ϭϯ ϮϬϭϴĞ IURP 3LYRW LQ :HHNV K, Ͳϭй EPS Rank is set to improve given strong EPS growth expectations ϭ ϭϯϭ ϭ Ϭ ϰϲ ϰθ EK< Ϭ ϲϱ ͲϬ Ϭ ͲϬ Ϯϭй Ϭ ϱθ Ϭ ϱϯ Ϭ ϰϭ Ϭ ϰϭ Ϭ ϯϳ Ϭ ϴ ϴϳ н Ϭ Ϯ Ϭ Company Overview Nordic s products find application in wireless PC peripherals, gaming and media controllers, sports and fitness sensors, toys, patient monitoring devices, and other consumer electronics. The Company s revenues are principally derived from Bluetooth (62%), proprietary wireless technologies (34%), and ASIC components (4%). The Company s wireless revenues come from major end markets such as Consumer Electronics (44%), Building/Retail (25%), Wearables (17%), Healthcare (5%), and other (9%). O Neil Methodology The stock has broken out of a 15-week base and is actionable. It has a strong technical profile, including an Up/Down volume ratio of 2.2, an RS Rating of 87, and an A/D Rating of A+. The stock has a low EPS Rank of 56. This metric is expected to significantly improve as, per consensus estimates, EPS will increase 118% and 81% in 2017 and 2018, respectively. For Q3 2017, the Company reported revenue of $66M, up 26% y/y and slightly above consensus of $65M. Revenue from Bluetooth was $45.7M, growth of 47% y/y. Revenue from proprietary wireless was $16.8M, a 15% y/y decline. Adjusted net profit came in at $4.4M and adjusted EPS came in at $0.03 (y/y growth of 52% in net profit). Net profit was 29% below consensus of $6.2M. Local Code: NO:NOD Bloomberg Symbol: NOD:NO ISIN: NO ϭ Strong earnings growth is expected in 2018 Ϭ ϰϲ Nordic Semiconductor (NDO.NO) specializes in Ultra Low Power (ULP) wireless communication technology. It is engaged in development of a version of ULP called Bluetooth Low Energy (BLE). ϭ Nordic Semi shares are breaking out of a cup. The stock has been consolidating since mid Ϭ Ϯ Ϭ ϳϳ Ϭ ϳϭ ^ŚĂƌĞƐ ϭϲϯd &ůžăƚ ϭϰϱd D'Dd ŽǁŶƐ Ϭ Ϯϯ ϭϱ ROE is expected to reach >20% by Margins are also expected to improve significantly. Ϭ ϮϬ Ϭ ϭθ Ϭ High RS Rating of 87 and best possible A/D Rating of A+ ϭϯ ϭϭ Ϭ ϭϱ Ϭ ϭϰ Ϭ ϭϯ ϴ Ϭ ϭϭ ϳ Shares broke out on aboveaverage volume Significant turnaround in top and bottom line growth ϮD ϭ ϰd Ϭ< нй ϰϭϭ< :ƵŶ ^ĞƉ &/E E / >^ Ϭ Ϭϳ Ϭ ϭϱ W^ EK<Ϳ Ͳй ͲϭϮй W^ й, E' ϭϲ ϳ ϮϭϮ ϯ ^ > ^ D/> EK<Ϳ ĞĐ Ϭ ϭϯ нϭϰ Ϯϭϱ ϭ Ϭ Ϭϯ нϯϭ ϭ ϲ Ϭ ϭϲ нϭϯ ϰ Ϭ Ϯϳ нй ϴ ϱ Ϭ нϭϭ ϯ ϱ Ϭ ϭϰ нϯϲ ϯϭϯ ϳ Ϭ ϯϭ нϰй ϰϭϱ Ϭ ϰϰ нϲϯй ϰϰθ ϲ Ϭ ϯϯ нϯϯй ϰϭϯ ϯ ͲϬ Ϭϱ Ͳ Ϯ Ϯ Ϭ Ϯϭ ͲϯϮй ϰϯϱ ϱ ^ĞƉ ϭϲ Ϭ Ͳй ϰϯϭ ϯ ĞĐ ϭϲ Ϭ Ϭϰ Ͳϴϴй ϰϰϱ ϱ DĂƌ ͲϬ ϬϮ нϲ ϭ :ƵŶ Ϭ ϮϬ Ͳ ϰϱ ^ĞƉ Ϭ нϯϭй ϱϭϲ ϭ ĞĐ Ϭ ϭϭğ нğ ϯ ϴĞ DĂƌ ϭθ Ϭ ϬϴĞ нğ ϰϭϲ ϯğ :ƵŶ ϭθ Ϭ ϱϱğ нğ ϱ ϯğ ^ĞƉ ϭθ Ϭ ϲϳğ нϯϰйğ ϰ ϴĞ Ͳй нθй нϳ нϭϭ Ϯй D Z'/E &d Z d y Ϭ ͲϮϯ ϭй W^ й ^hzwz/^ ϱϯ &he ^ ϰθ нй н Ϯй Ͳ ϲϯ нϯ нϯ ϭй ͲϴϮ ϳϱ нϰ н нϭ ϴϭ нϰ нϭϰ ϯй нϭϰ ϯй ϴ нϰ н Ϯй нϭ ϭ нϲϯй нθ нϰϭϭ ϭϭϱ нϲϯй нϭϯ ϴй Ϭ ϭϯϱ нϰ нϭϰ нϯϭ Ϯ нй н н ͲϮ ͲϮϬϬ ϭϯϭ н нϳ н ϭϭϰ Ͳϰй нϱ нϭ нϭ нϭ ͲϬ н нϲ нϯϭ ϭ нϯ нϱ Ͳ ϭϭϰ нйğ нğ нğ нϭğ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϭϯϳ ϭϭϰ ϭϭϯ ϭϭϰ ϱ ϮϬϭϴ Ɛƚ ϯϳ Ϯ ϮϬ Ɛƚ Ϯϭ ϯ ϱͳljƌ,ŝőś ϭϯϭ ϱͳljƌ >Žǁ ϭϭϰ ǀƐ /ŶĚ ǀŐ ϱ ϯdž EŽƌĚŝĐ ^ĞŵŝĐŽŶĚƵĐƚŽƌ EK EKͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ :ĂŶƵĂƌLJ ϮϬϭϴ Growth Drivers Nordic s BLE products are witnessing strong demand led by an increase in the number of connected devices. Ongoing improvements in BLE combined with a large and growing developer community have made BLE a leading IoT technology. Nordic is a pioneer in BLE technology as a wireless standard within every version of Bluetooth since Bluetooth 4.0 all the way up to the latest Bluetooth 5. With its presence in BLE since 2010, Nordic has a demonstrated track record, which gives it an edge against its competitors Texas Instruments, Qualcomm, STMicroelectronics, and Dialog Semiconductor. The Company has a dominant position in the BLE market with more than 50% share. Nordic provides high quality, easy-to-use, reliable, and cost effective ULP solutions to the wireless market. Looking Forward The Company guided for H revenues of $120M-130M, which implies revenue of $54M-64M in Q Nordic Semiconductor raised its H Bluetooth revenue growth estimate to 35-45% from 30-40%. The Company expects gross margin of 46-48% for H2 2017, in line with H1. Nordic has a target of 50% for Next Catalyst: The Company s Q earnings release on February

51 NORWAY EŽƌĚŝĐ ^ĞŵŝĐŽŶĚƵĐƚŽƌ EK EK W^ ϲϰ dž Ϯ Ϯ Ϭϯ ϭ ϴϴ ϭ ϳϮ ϭ ϱϲ ϭ ϰϭ ϭ Ϯϱ ϭ Ϭ Ϭ ϰ нϰϳ Ϯ Ϯϱϭ W^ ZĂŶŬ ϱϳ K^>K džđś EKϬϬϬϱϱϭ ŶŽƌĚŝĐƐĞŵŝ ĐŽŵ ůğđͳ^ğŵŝđžŷěđƚžƌ &ĂďůƐƐ Nordic Semiconductor DŬƚ ĂƉ EK<ϳ ϱϯ ^ĂůĞƐ EK<ϭ ϴϲ dƌžŷěśğŝŵ EKZt z ^ŚĂƌĞƐ ϭϲϯd &ůžăƚ D W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 EKZ / ^ D/ KE h dkz ^ /^ EKZt zͳ ^ KDW Ez E' ' /E d, s >KWD Ed E ^ >> K& /Ed 'Z d /Z h/d^ E Z > d ^K>hd/KE^ &KZ ^,KZdͲZ E' t/z > ^^ KDDhE/ d/ke DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϯ Ϭ Ϭϯ Ϭ ϭϯ Ϭ Ϭϴ Ϭ Ϭ Ϭ Ϭϰ Ϭ Ϭϳ Ϭ Ϭ Ϭϰ W^ hz Ϭ Ϭϳ ϳŸ Ϭ ϴŸ ^, &>Kt ^,Z hz Ϭ Ϭϰ Ϭ Ϭϰ Ϭ ϭθ Ϭ Ϭϴ Ϭ ϭϭ Ϭ Ϭϲ Ϭ ϭϰ Ϭ Ϭ Ϭϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭ й й ϭθй ϭϭй й й ϰй Ͳ Ͳй ^ƚăďŝůŝƚljͿ Ϯϭй ϭθй ϭθй ϱ ϯϯй Ϯ Ϯϭй й Ͳ ϰй ϱϳ ^ƚăďŝůŝƚljͿ й Ͳϯй ϱ ϭй Ͳ ϰй Ͳϭ ϯϯй ϯ ϭϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϯϯ ϭ Ϭ ϰ ϴϴ ϭ ϭϲϯ ϭθϯ /Es d K Ϯ ϳdž ϮϬ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϱϲ ϱϳ ϱϲ ϱϲ ϲϱ ϲθ ϲϱ ϲϱ ϲϲ d y Z d Ϯ ϯ Ϯ Ϯϴϯ Ϯϴϯ Ϯϳϯ ϲ Ϯϱϳ Ϯϳϯ ϰ Ϯϴ Ϯ <>K' ϭ Ϯ ϭ Ϯ ϭ Ϯ ϭ ϰ ϭ ϳ Ϯ ϭ Ϯ Ϯ Ϯ Ϭ ϭ ϳ Z Θ Ϯϭ ϰ < s > ϳ dž Ζϭϲ Ϯϱ ϰϰ ϱϲ ϱϯ ϰϱ /s hz EŽŶĞ /s 'Z Zd ϳϱ ϳ ϳϮ ϳϯ ϴϲ ϴϲ ϴϳ ϴϰ ϴϱ d Ϭ ϲ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϰͿ Ϯϭ ϮϬ ϭϱ ϭϯ ϭϭ ϮϬϭϲ DW>Kz ^ ϱϯϯ ϭͿ ϭ ϭ ϭϯϭ ϭ Ϭ Ϭ ϳϴ Ϭ ϳϮ Ϭ ϲϲ ϰϲ ϰϲ Ϭϱ EK< нϭ Ϭ нϭ ϭϭй Ϭ ϱ Ϭ ϱϯ Ϭ ϰϳ Ϭ ϰϭ Ϭ ϰϭ Ϭ Ϭ ϴϱ ϱ Ϭ Ϭ Ϯϳ Ϭ Ϯϯ ϭϱ Ϭ ϮϬ Ϭ Ϭ ϭϯ ϭϭ Ϭ ϭϲ Ϭ ϭϰ Ϭ ϴ Ϭ ϭϭ ϳ Ϭ Ϭϯ ϲ Ϭ Ϭϳϴ ϱ ϯd ϭ ϱd ϭd н Ϭ< ϮϬϬ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ Ϭϭ Ϭ ϬϬ W^ hzͿ Ͳ W^ й, E' Ϯϭ Ϯ ϭθ ϳ ^ > ^ D/> hzͿ Ͳϯй Ͳй Ϭ Ͳϳϭ ϰй W^ й ^hzwz/^ ϰϳ &he ^ ϰϲ ϭϱ Ϯϴϰ ϮϯD ^, Z ^, > z &he ^ :ƵŶ Ϭ Ϭϭ Ͳϲ Ϯϭ ϰ Ͳϯ Ϭ ϰθ D ^ĞƉ Ϭ ϬϮ ϭ ͲϮй ͲϮϯ ϭй ϱϯ ϮϯD ĞĐ Ϭ Ϭϭ Ϯϱ ϳ нϯϭй Ͳ ϲϯ ϮϬD Ϭ ϬϬ Ϯϯ Ϯ нй ͲϴϮ ϳϱ ϮϱD Ϭ ϬϮ н Ϯ ϳ нϯ нϭ ϴϭ D Ϭ Ϭϯ нϱ Ϭ нϰ нϭϰ ϯй ϴ ϮϱD Ϭ Ϭϯ нϯϭ ϯϱ Ϯ нϯ нϭ ϭ ϮϴD Ϭ ϬϮ ϯϲ Ϭ нϱ нϰϭϭ ϭϭϱ D Ϭ Ϭϰ н ϰϲ ϯ нϱ Ϭ ϭϯϱ ϯϭd Ϭ Ϭϱ нϲ ϰϳ ϭ нй нϯϭ Ϯ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϭϯ ϰϭ нй ϭϯϳ ϯϱd ͲϬ Ϭϭ Ͳϭϱ ϯϲ ϯ нϭй ͲϮϬϬ ϭϯϭ ϯϲd Ϭ ϬϮ Ͳϱ ϰϲ ϴ нϭй н ϭϭϰ D ^ĞƉ ϭϲ Ϭ Ϭϭ Ͳй ϰθ Ϭ нϯй ĞĐ ϭϲ Ϭ ϬϬ Ͳ ϰ ϭ нϭ DĂƌ Ϭ ϬϬ н ϰϯ ϯ нй ϭϭϰ ϯϯd ϭϭϯ ϰϲd ϭϭϰ ϰϱd :ƵŶ Ϭ ϬϮ ϱϭ нϭϭй нϯϭ ϭ ϰθd ^ĞƉ Ϭ ϬϮ н ϱϰ ϴ н Ͳ ϭϭϰ ϰϱd ĞĐ Ϭ ϬϭĞ DĂƌ ϭθ Ϭ ϬϭĞ ϱ ϮϬϭϴ Ɛƚ ϯϱ ϱϭ ϯğ нğ ϲğ ͲϮйĞ ϮϬ Ɛƚ ϮϬ ϱϰ ϱͳljƌ,ŝőś ϭϯϭ Ϭ ϱͳljƌ >Žǁ Ϭ ϭϭϰ ϰd ǀƐ /ŶĚ ǀŐ ϱ ϯdž EŽƌĚŝĐ ^ĞŵŝĐŽŶĚƵĐƚŽƌ EK EKͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -49- Technology: Elec-Semicondctor Fablss

52 Asml Holding NETHERLANDS Ɛŵů,ŽůĚŝŶŐ ^D> E> ZW^ ϱ ϳ dž ϲϲ ϲϳ ϱ ϲϱ ϱϯ ϲϯ Source: Corporate Website ϰϱ ϲϭ ϭϭ ϯϯ ϯϯ Ϯ ϴϮ ϯϯ ĂƐŵů ĐŽŵ Company Overview ASML manufactures semiconductor equipment systems consisting of lithography systems and serves all the top semiconductor manufacturers, including Intel, Samsung, and Taiwan Semiconductor. Q revenue by technology: ArF Immersion, 56%; EUV, 25%; KrF, 10%; other, 9%. Its memory, foundry, and IDM segments accounted for 53%, 29%, and 18% of Q revenues, respectively. O Neil Methodology The stock is currently trading 4% below the pivot of its most recent base and is actionable on a strong breakout from its base. The stock has a strong technical profile, with an RS Rating of 90 and an A/D Rating of B-. The stock has an EPS Rank of 89. Consensus estimates have the Company s EPS growing 25% y/y in In Q4 2017, the Company s sales grew 34.3% y/y to 2.6B, beating consensus estimates of 2.15B, led by better-thanexpected equipment sales. Operating margin stood at 29.3%. The Company reported EPS of 1.5, up 22% y/y, beating consensus estimates of Growth Drivers The Company is the leading player in the 6B global lithography market. Its EUV machines enable chipmakers to manufacture smaller semiconductors (sub-10nm) while increasing capacity and speed for devices such as handsets and tablets. Local Code: NL:ASML Bloomberg Symbol: ASML:NA ISIN: NL ůğđͳ^ğŵŝđžŷěƶđƚžƌ ƋƵŝƉ sğůěśžǀğŷ E d, Z> E ^ /ŶĐ ϰ DŬƚ ĂƉ Φϱϲ ϬϬ ^ĂůĞƐ Φϳ ϰϭ ^ŚĂƌĞƐ ϰϯϭd &ůžăƚ ϮϴD W^ ƵĞ džěălj ĞͿ K, D'Dd ŽǁŶƐ ^D>,K> /E' E s /^,K> /E' KDW Ez d, KDW Ez /^ D Eh& dhz Z K&,/WͲD </E' Yh/WD Ed d, KDW Ez /^ E' ' /E d, s >KWD Ed WZK h d/ke D Z< d/e' ^ >>/E' E ^ Zs/ /E' K& ^ D/ KE h dkz Yh/WD Ed ^z^d D^ KE^/^d/E' K& >/d,k'z W,z ^z^d D^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϳ ͲϬ ϰϱ ϯ Ϭϱ ϰ ϰθ Ϯ Ϯ Ϯ ϳϰ ϯ ϯ ϰϲ W^ hz ϰ ϭϱ Ϯ ϱ Ϭϯ Ϯϭйź ^, &>Kt ^,Z hz ϭ ϳϴ Ϭ ϯ ϴϮ ϱ ϰϱ ϯ ϯ ϬϬ ϯ ϰϱ ϰ ϯϳ ϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϭй Ͳϭϭй Ϯϴй Ϯ й Ϯ й Ϯ Ϯ Ͳ ^ƚăďŝůŝƚljͿ ϴй ϭ Ͳϴй ϰ ϰ ϯϭй й ϭ ϭ ϭ Ͳ ϯй ϭϲ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' Ͳй Ͳϰ ϭθϯй Ϯ Ͳϭ ϭϭй ϭϯй ϴй KDW Z d/e' ^ > ^ D/>Ϳ hz Ϯ ϱϰ ϭ ϱϲ ϰ ϴ ϱ ϲϱϭ ϰ ϳϯϮ ϱ ϱ ϱ ϴϱϲ ϲ Ϯϴϳ ϲ ϳϱ /Es d K ϭ ϯdž ϴ DĂLJ :ƵŶ ϬϮ :ƵŶ Ϭ :ƵŶ ϭϲ :ƵŶ Ϯϯ :ƵŶ :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů d й ϭ й ϯϭй ϳϮ ϳϭ ϳϮ ϳϰ ϲ ϳϮ ϳϲ d y Z d ϭ й ϭ ϬϬϭ Ϯϳ ϭ Ϭ ϭ ϬϯϮ ϭ Ϭϰϴ ϭ ϬϬϴ ϭ ϬϬϳ ϭ Ϭϰϳ <>K' ϭ Ϯ ϭ Ϭ Ϭ Ϭ ϴ ϭ Ϭ Ϭ Ϭ ϴ ϭ Ϭ ϭ ϯ Z Θ ϭϱ ϭ < s > ϱ ϯϳdž Ζϭϲ ϰ ϲ Ͳϱ Ͳϳ Ͳ ϭθ /s hz ϭ ϮϬ ϭ Ϳ /s 'Z Zdнϭ ϭϱͿ ϲϲ ϲϰ ϲ ϰϳ ϱϳ ϲϯ ϳϰ d ϭ ϭϲ ϬϬͿ >W, Ϭ Ϭϰ Ϭ ϬϯͿ ϮϬ Ϯϴ Ϯ Ϯϱ ϮϬϭϲ DW>Kz ^ ϭϲ ϲϰϳ йͿ Sharp improvement in Accumulation and Up/Down Volume Ratio Ϭ Shares are breaking out to new all-time highs after consolidating for 14 weeks. The move was triggered by better-thanexpected Q results and guidance for Q3 and FY2017 ϭ ϭ ϭϯ ϭϯϭ ϭ нθ ϮϬ Ϭ ϳ Ϯϱ ϳϰ ϱϰ ϱϳ ϱϭ ϴ ϳϳ ϴ Ϭϳ ϰϲ ϭϭ ϳ ϯϳ ϲ ϲϳ ϱ ϲ hz нϲ ϳϰй Ϭ ϴϲ ϰ ϱθ Ϭ ϱϯ Ϭ ϲθ ϭϯ Ϯϴ Ϯ Ϭ Ϭ ϭ ϰ ϴϱ ϳϱ Ϭϱ ϭϰ Ϭϰ Ϭ Expect these EPS consensus forecasts to be revised upward High EPS Rank ϱϰ ϯϲ ϭϱ ϳ ϯ ϭ ϱ ϴϭ Ϯϭ Ϭϱ ASML Holding (ASML.NL) is a leading global manufacturer of chip-making equipment. Increasing adoption of extreme ultraviolet (EUV) systems by global chip manufacturers should drive the Company s growth. D^d Z D yͿ džđś E>ϬϬϮϳϯϮϭϱ нϯϭ ϰϭ ϴ ϬϬ W^ ZĂŶŬ ϴϴ ϯ ϰϱ High Accum/Dist. rating of B. Relative Strength rating of 74 is expected to improve as the stock breaks into new highs ϱ ϰ ϱϲ ϰ Ϯϭ ϯ ϴϲ ϯ ϯϯ Ϯ ϴ Ϯ ϲϯ ϭϱ Ϯ Ϯϴ Q results were better than consensus expectations D ϲd ϰ ϰd ϰd нϰ ϮD Ϯ&/E E / >^ ĞĐ ϭϯ ϱ W^ hzͿ Ϭ DĂƌ Ϭ :ƵŶ Ϭ ϱϭ ^ĞƉ Ϭ ϰϱ ĞĐ ϭ Ϭ ϲϯ Ϭ ϴϴ Ϭ ϱϰ Ϭ Ϭ ϯ Ϭ ϴϲ Ϭ ϳϱ Ϭ ϲθ Ϭ ϰϲ Ϭ ϴϯ ^ĞƉ ϭϲ Ϭ ϯ ĞĐ ϭϲ ϭ Ϯϯ DĂƌ ϭ Ϭϱ :ƵŶ Ϭ ϱğ ^ĞƉ ϭ ϬϱĞ ĞĐ ϭ Ğ DĂƌ ϭθ ϭ ϭϱğ й W^ й, E' Ͳй Ͳй ϴ^ > ^ D/> hzͿ ϭ ϬϮϯ Ϯ ϴϮ ϭ Ͳй ϭ ϭθϲ ϳ Ͳϯϭй ϭ ϯϭθ Ϯ нй ϭ ϴϰϴ ϯ нй ϭ ϯϲ ϱ нϳϯй ϭ ϲϰϯ ϲ нϯ ϭ ϯ Ϯ Ͳϰϭй ϭ ϰϰ Ϭ нϱ ϭ ϲϰ ͲϮй ϭ ϲϱϰ ϭ нϯ ϭ ϱϰ Ϯ Ͳϯй ϭ ϰ Ϯ Ͳϱϭй ϭ ϯϯϯ Ϯ Ͳϯй ϭ ϳϯ ϲ нй ϭ ϴϭϰ ϲ нθϭй ϭ ϳ ϰ нϭϯθй ϭ ϰϯ ϲ нğ ϭ ϲ ϱğ нйğ Ϯ ϭ ϬĞ ͲϴйĞ Ϯ Ϯϱϯ ϱğ нϭğ Ϯ Ϯϳϱ ϰğ й Ͳϭ ͲϮ йd Z'/E &d Z d y нϯ ϭй н й W^ й ^hzwz/^ Ͳϯϭ ϰй нϭϱ Ͳϯй н нθϭй нϱ нϯ Ͳй нϭθй нϭй нϭ Ͳϰй Ͳй н нϭ нϯϯй нϰ нϭğ нϭθйğ нϭθйğ нϭğ нϭθ нϭϰ нϯϳ ϴй нϯϭ ϯй н ϯй нϭθ нϯϭ ϰй н ϰй н ϰй нϯϭ ϴй нϯϭ ϰй нϭϰ нϯϭ ϯй нϯϭ ϴй нϯϳ нϯϯ ϯй нϭ ϰй Ͳϭϰ нϭϯ нϭ ϯй нϭϭ ϯй Ͳϭ ϴй нϯϳ ϯй нϭ ϭй нϯ ϴй нϯ нθ ϴй нϰ ϯй н ϴй н ϯй ϭ ϲϲϯ ϭ ϰ ϭ ϲθϳ ϭ ϲϲϲ ϭ ϱϭ Ϯ Ϭϲϱ Ϯ ϭ Ϯ Ϭϴϲ Ϯ Ϯ ϯϯϭ Ϯ ϯϱϯ Ϯ ϯϭθ Ϯ ϰθ Ϯ ϱϱϲ Ϭ&hE ^ ϲϰϭ ϭ Ϯϴϯ Π ϮϬ t/>>/ D KΖE /> н K /E Ϯ Ϯ Ϯ ϰϲϱ ϮϬ Ɛƚ ϯϭ ϮϬ ϮϬϭϴ Ɛƚ Ϯϱ ϴϮ ϱͳljƌ,ŝőś ϯϱ Ϭ ϱͳljƌ >Žǁ ϭϱ Ϭ Ϯ ϰϳϯ ǀƐ /ŶĚ ǀŐ ϭ ϰdž Ɛŵů,ŽůĚŝŶŐ ^D> E>Ϳ tğğŭůlj ĂƐ ŽĨ tğě :ƵůLJ ϮϬ In Q4 2017, ASML reported net bookings of 2.94B and backlog of 6.7B, which includes 28 EUV systems (valued at 3B), showing strong revenue visibility. Samsung is expected to adopt EUV for its 7nm process by the end of TSMC is ramping up its 7nm foundry process in 2017 using optical lithography and has been testing EUV. ASML recently acquired a 25% stake in Carl Zeiss SMT subsidiary, a manufacturer of lenses other equipment needed to focus the energy beams, as part of its EUV push. ASML uses Carl Zeiss equipment to help semiconductor companies create semiconductor chip circuitry. ASML is the only company that has started commercial production of EUV-based products, giving it a significant edge over its competitors. Nikon is still using multiple patterning using optical immersion DUV technology and Canon only sells i-line and KrF lithography tools. Looking Forward For Q1 2018, the Company guides for net sales of 2.2B, slightly below consensus estimates of 2.36B. ASML expects gross margin of 47-48%, higher than consensus estimates of 43.8%. The Company guides for EUV revenue of 150M. Next catalyst: The Company s Q results on April

53 NETHERLANDS Ɛŵů,ŽůĚŝŶŐ ^D> E> W^ dž ϭϱ ϯϯ ϭϰ ϬϬ ϭϯ ϲϳ ϭϭ ϯϯ ϬϬ ϴ ϲϳ ϴ ϬϬ ϳ ϯϯ ϲ ϯϯ D^d Z D yͿ džđś E>ϬϬϮϳϯϮϭϱ нϯϭ ϰϭ ϴ ϬϬ W^ ZĂŶŬ ĂƐŵů ĐŽŵ y /s ϰ Ϯϳ ϮϬϭϴ ůğđͳ^ğŵŝđžŷěƶđƚžƌ ƋƵŝƉ Asml Holding DŬƚ ĂƉ Φϲϴ ^ĂůĞƐ Φ Ϭϱ sğůěśžǀğŷ E d, Z> E ^ /ŶĐ ϰ ^ŚĂƌĞƐ ϰϯϭd &ůžăƚ ϯϲϯd W^ ƵĞ ŝŷ ϳϱ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ^D>,K> /E' E s /^,K> /E' KDW Ez d, KDW Ez /^ D Eh& dhz Z K&,/WͲD </E' Yh/WD Ed d, KDW Ez /^ E' ' /E d, s >KWD Ed WZK h d/ke D Z< d/e' ^ >>/E' E ^ Zs/ /E' K& ^ D/ KE h dkz Yh/WD Ed ^z^d D^ KE^/^d/E' K& >/d,k'z W,z ^z^d D^ DKZ EEh > Ͳ E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ͲϬ ϰϱ ϯ Ϭϱ ϰ ϰθ Ϯ Ϯ Ϯ ϳϰ ϯ ϯ ϰϲ ϰ ϯ W^ hz ϱ ϳϰ ϭÿ ϲ ϱ ϮϭйŸ ^, &>Kt ^,Z hz Ϭ ϯ ϴϮ ϱ ϰϱ ϯ ϯ ϬϬ ϯ ϰϱ ϰ ϯϳ ϰ ϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳϭϭй Ϯϴй Ϯ й Ϯ й Ϯ Ϯ Ϯ Ͳ й ϭϯ ^ƚăďŝůŝƚljͿ Ͳϴй ϰ ϰ ϯϭй й ϭ ϭ ϭ Ϯϭй Ͳ ϭϯй ^ƚăďŝůŝƚljͿ ϭϯй Ͳϰ ϭθϯй Ϯ Ͳϭ ϭϭй ϭϯй ϴй ϯϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϱϲ ϰ ϴ ϱ ϲϱϭ ϰ ϳϯϮ ϱ ϱ ϱ ϴϱϲ ϲ Ϯϴϳ ϲ ϳϱ Ϭϱϯ /Es d K ϭ ϲdž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ й ϯϭй Ϯϴй ϲϰ ϲϱ ϲϯ ϱϳ ϱθ ϱθ ϱϲ ϱϱ ϱϳ d y Z d Ͳ ϭ й й ϭ ϯ ϭ ϯϯϯ ϭ ϭ ϭ Ϯϭ ϭ Ϯϴϰ ϭ Ϯϴϰ ϭ ϯϳϱ ϭ ϯϳθ ϭ ϯϲϲ <>K' Ͳ Ϭ ϴ Ϭ ϳ Ϭ ϳ Ϭ ϳ Ϭ ϳ Ϭ ϲ Ϭ ϴ Ϭ Ϭ Z Θ < s > ϲ ϰϯdž Ζ Ͳ Ͳ Ͳ ͲϮϭ ϭϭ Ͳϭϱ ϯ ϰϭ ϰϭ /s hz ϭ ϰϭ Ϭ Ϳ /s 'Z Zdнй Ϳ ϴϴ ϴϴ ϴϱ ϴϮ ϴϳ ϳϲ ϴϲ ϴϴ d ϭ Ϯϱ ϬϬͿ >W, Ϭ Ϭϴ Ϭ ϬϳͿ ϲ ϰ ϰ ϱϭ ϱϱ ϱϱ ϱϲ ϱϰ ϮϬ DW>Kz ^ ϭϲ ϲϰϳ йͿ ϰ Ϭ ϯ Ϭ Ϭ Ϯ Ϭ Ϭ Ϭ ϱ ϲϳ ϭ ϭϱθ ϭϱ ϱ ϬϬ ϰ ϯ ϭ Ͳϳ ϲϱ ϰ ϯϯ ϰ ϬϬ ϯ ϲϳ ϭ ϭϯϭ ϭ ϯ ϯϯ Ϭ ϯ ϬϬ Ϯ ϲϳ ϴϴ Ͳ Ϯ ϯϯ hz Ͳϰ ϲϭй Ϯ ϬϬ ϭ ϲϳ ϭ ϱϯ ϰϲ ϭ ϰϭ ϭ Ϯϳ ϭ ϭ ϬϬ Ϭ ϴϳ Ϭ Ϭ ϳϯ Ϭ ϲϯ Ϭ ϱϳ D ϳD ϱ ϴD ϱd Ͳϭϭй ϯd ϮD Ϯ&/E E / >^ DĂƌ :ƵŶ Ϭ W^ hzͿ Ϭ Ϭ ϱϭ й W^ й, E' Ͳй Ͳй Ϯ^ > ^ D/> hzͿ ϴϮ ϭ ϭ ϭθϲ ϳ й ͲϮ Ͳϯй й W^ й ^hzwz/^ нϭϱ нϭ ϰй ϴ&hE ^ϭ ϯ ϭ ϲϯ ^, Z ^, > z &he ^ ϭϭϲd ϭϯϳd ^ĞƉ Ϭ ϰϱ Ͳϯϭй ϭ ϯϭθ Ϯ н Ͳϭϰ ϭ ϰθϯ ϭd ĞĐ ϭ нй ϭ ϴϰϴ ϯ нθϭй нϭϯ ϭ ϲϲϯ ϭϭθd Ϭ ϲϯ нй ϭ ϯϲ ϱ нϱ нϭ ϯй ϭ ϲϰϭ ϭϯϱd Ϭ ϴϴ нϳϯй ϭ ϲϰϯ ϲ нϯ нϭϭ ϯй ϭ Ϯϭ ϭd Ϭ ϱϰ нϯ ϭ ϯ Ϯ Ͳϭ ϴй Ϯ Ϭϯϳ ϲd Ϭ Ͳϰϭй ϭ ϰϰ Ϭ Ͳй нϯϳ ϯй Ϯ Ϭϴ ϭd Ϭ ϯ нϱ ϭ ϲϰ нϭθй нϭ ϭй Ϯ Ϭϱϱ ϭϯϳd Ϭ ϴϲ ͲϮй ϭ ϲϱϰ ϭ нϭй нϯ ϴй Ϯ ϲ ϴD Ϭ ϳϱ нϯ ϭ ϱϰ Ϯ нϭ нϯ Ϯ Ϯϴϯ ϭϰϲd Ϭ ϲθ Ͳϯй ϭ ϰ Ϯ Ͳϰй Ϯ Ϯ ϭϰϲd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϰϲ Ͳϱϭй ϭ ϯϯϯ Ϯ Ͳй нθ ϴй Ϯ ϯϭθ ϭϰd Ϭ ϴϯ Ͳϯй ϭ ϳϯ ϲ н нϰ ϯй Ϯ Ϯϴϲ ϭϱd ^ĞƉ ϭϲ Ϭ ϯ нй ϭ ϴϭϰ ϲ нϭ Ϯ ϴ ϭϲϭd ĞĐ ϭϲ ϭ Ϯϯ нθϭй ϭ ϳ ϰ нϯϯй н ϴй Ϯ ϰϳϳ ϭϲϭd DĂƌ ϭ Ϭϱ нϭϯθй ϭ ϰϯ ϲ нϰ н ϯй Ϯ ϱϯϭ ϭϱθd :ƵŶ ϭ Ϭϴ нϯ Ϯ ϭ ϰ нϯϭй Ϯ ϲϭϱ ϭϲϲd ^ĞƉ ϭ нϰ Ϯ ϰϰϳ ϰ нϯ нϭθ ϭй Ϯ ϳ ϰd ĞĐ ϭ нй Ϯ ϱ ϰ нй DĂƌ ϭθ ϭ Ğ нϭϭйğ Ϯ Ϯϭϱ ϱğ нğ :ƵŶ ϭθ ϭ ϯϱğ нϯğ Ϯ ϰϲϯ ϮĞ нϭğ ϯϯ ϮϬϭϴ Ɛƚ Ϯϳ ϮϬ Ɛƚ ϳϱ ϱͳljƌ,ŝőś ϯϱ Ϭ ϱͳljƌ >Žǁ ϭθ Ϭ Ϯ ϳϴϱ ϰd ǀƐ /ŶĚ ǀŐ ϭ ϲdž Ɛŵů,ŽůĚŝŶŐ ^D> E>Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -51- Technology: Elec-Semiconductor Equip

54 Just Eat UNITED KINGDOM :ƵƐƚ Ăƚ : ' ZW^ ϴ dž ϱ ϭϱϳ ϰ ϴ ϭϯϭ ϰ ϭϭϭ ϭ ϭ Ϯ ϱ ϴϯ ϯϯ ϳϰ Ϭϳ ϲϰ ϴϭ Source: Corporate Website >KE KE džđś ' ϬϬ <yϱ Eϴϲ ũƶɛƚͳğăƚ ĐŽ ƵŬ W^ ZĂŶŬ Company Overview Just Eat provides customers with convenient payment options and access to a wide variety of local restaurants in 12 countries. The Company generates 94% of revenues from commissions and other fees paid by restaurants revenue by geography: the U.K., 63%; established markets (Benelux, Canada, Denmark, France, Ireland, Norway, Switzerland), 20%; Australia/New Zealand, 10%; developing markets (Italy, Mexico, Spain, Brazil), 7%. DŬƚ ĂƉ άϰ Ϭϰ ^ĂůĞƐ άϯϳϱ D ^ŚĂƌĞƐ ϲϳd &ůžăƚ ϱϱϳd W^ ƵĞ ŝŷ ϭϭ ĂLJƐ ĞͿ 6WURQJ (36 FRQVHQVXV HVWLPDWHV ϯϱ ϭϯϭϭ ϭϭ 6WURQJ DQG \HDU JURZWK UDWHV LQ WRS DQG ERWWRP OLQH ϬϬ 6KDUHV DUH EUHDNLQJ RXW RI D FXS ZLWK KDQGOH SDWWHUQ Ϭ Ϭ Ϭ ϲϯϯ ϰϲ ϴϮ ϰθ 5LVLQJ FDVK IORZV PDUJLQV DQG 52( ϴ ϯϭ ϰθ ϰϱ Ϭϳ Ϭ ϱϱ ϬϬ ' y нϭϰ нϯ ϱ Ϭ ϰ ϴϯ Ͳ Ϭ ϯ Ϭ ϯϱϱ Ϯϳ ϳϴ Ϭ ϯ Ϭϳ ϮϬ ϯϳ ϱ ϱ ϱϲ %HVW SRVVLEOH (36 5DQN ϬϬ ϯ ϴϱ ϱϳ Ϭϲ ϱϱ ϱϲ K, Ͳ IURP 3LYRW D'Dd ŽǁŶƐ :h^d d W> :h^d d W> /^ he/d </E' KDͲ ^ KW Z dkz K& /'/d > D Z< dw> &KZ d < t z &KK >/s Zz d, KDW EzΖ^ ^ 'D Ed^ /E >h d, h< h^dz >/ Θ E t > E ^d >/^, D Z< d^ E s >KW/E' D Z< d^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ͲϬ ϭϭ ͲϬ ϲθ ϭ ϰϲ ϳϮ ϯ ϳϱ ϳϭ W^ ' y ϭϲ ϱθй Ϯϯ ϮϬ ϯ ^, &>Kt ^,Z ' y ͲϬ Ϯϭ Ϭ ϭϭ ϭ ϲϯ ϰ ϳ ϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ő ϱθй Ͳ Ͳϰй ϭϭй ϯ й ϲϯй ϳϭ ^ƚăďŝůŝƚljͿ ϲϭй ͲϭϮй ϰϰй ϭ Ͳϭϲ ^ƚăďŝůŝƚljͿ ϳ ϲϯй ϲϯй ϱθй ϱϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ ' y ϯ ϯϳϳ ϱ ϳϳ ϲ ϭϲ< Ϯϱ< < /Es d K ϳ ϱdž DĂƌ Ϭϯ DĂƌ DĂƌ DĂƌ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ d й Ϭ Ϭ ϱϲ ϱθ ϳϴ ϳϯ ϳϳ ϳϯ ϳϭ ϳϳ ϳϳ d y Z d ϭ й й Ϯ ϳϱϭ Ϯ ϯ ϯ ϰθϰ ϯ ϰϲϯ ϯ ϰ ϯ ϯϱθ ϯ ϯϲ ϯ ϰϳϲ <>K' Ϭ ϴ Ϭ ϴ ϭ ϰ ϭ ϰ ϭ ϴ ϭ ϭ ϰ ϭ ϯ ϭ ϯ Z Θ ϯ ϯ < s > ϰ ϴϭdž Ζϭϲ Ͳ ͲϮϬ ϰϱ ϯϳ ϰϲ ϰϳ ϰϯ ϯ /s ' y EŽŶĞ /s 'Z Zd Ϯϯ ϳϲ ϳϰ ϳϭ ϲϯ ϳϳ ϴϮ d Ϭ ϱθ ϭϰ ϬϬͿ >W, Ϭ Ϭ ϬͿ ϯ ϱ ϰ ϲ ϭ ϴϲ ϳϮ ϮϬϭϲ DW>Kz ^ ϭ ϲϯϭ ϭϯйͿ ϰϲ ϱ Just Eat (JE.GB) is a leading global online and mobile food delivery company. The Company continues to benefit from an increasing customer base and strategic acquisitions. /ŶƚĞƌŶĞƚͲ ŽŶƚĞŶƚ >ŽŶĚŽŶ he/d </E' KD 6WURQJ DFFXPXODWLRQ DQG PRPHQWXP ϯϲ Ϯ Ϭ Ϭ Ϭ ϭϱ ϳϰ ϭ ϴ ϭ ϭϯ Ϭϰ ϭϭ ϭϭ ϭ ϭϯϭ ϭ Ϭ ϴ ϯϯ ϳ ϰϭ ϲ ϰθ,qfuhdvlqj QXPEHU RI IXQGV KROGLQJ -XVW (DW VWRFN D ϴD ϰd ϯ ϬD ϮD Ͳ O Neil Methodology The Company s high EPS Rank of 93 is a result of three-year average EPS and sales growth of 31% and 55%, respectively, from 2014 to The Company reported H revenues of 246.6M (+44% y/y) and an adjusted EPS of 7.8 (+39% y/y). Revenues beat consensus expectations by 6%. In H1 2017, orders increased 24% y/y to 80.4M. Like-for-like orders surged 25% y/y. About 75% of total orders were through mobile devices. Active users increased 19% y/y to 19M. In Q3 2017, revenues grew 47% y/y to 138.6M. For 2017, the Company raised revenues guidance from 500M 515M to 515M 530M. It expects underlying EBITDA of 157M 163M in Growth Drivers Just Eat acquired Hungryhouse, a leading takeaway delivery portal in the U.K, in December 2016 for a consideration of 200M. The acquisition enables the Company to expand its customer base by offering a wide variety of restaurant choices to U.K. consumers. The Company expects to generate EBITDA of 12M 15M from this acquisition for Local Code: UK:JE. Bloomberg Symbol: JE/:LN ISIN: GB00BKX5CN86 ĞĐ ϭϭ DĂƌ ϭϯ &/E E / >^ ͲϬ ϭϭ W^ ' yͿ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ͲϬ ϲθ DĂƌ :ƵŶ Ϭ ϯϳ ^ĞƉ ĞĐ Ϭ ϴϳ Ͳϱϭϴй W^ й, E' ϯ ϯϳϲ ϱ ^ > ^ D/> ' yͿ ϱ ϳϳ Ϭ Ͳϲ ϭ ϴ ϰϲ ϭ ϲθ Ϯ Ϭϳ ϯ ϲϱ ^ĞƉ ϭϲ ĞĐ ϭϲ ϳ Ϭϲ нϭй нθϳϯй нϯϯй Ͳϳ нϭϭ нϭй ϴ ϳϮϬ Ϭ ϳ Ϭ Ϭ ϭ Ϭ ϮϬ ϰ Ϭ DĂƌ ϱϰ ϮϬ Ɛƚ ϯϱ Ϭ ϱͳljƌ,ŝőś ϭϰϭ Ϭ ϰ ϰ Ϭ ϱ Ϯ Ϭ ϲ Ϭ нϱθй нϲ нϱϰй нϲ нϱ нϰ ϱͳljƌ >Žǁ Ϯϱ Ϭ нϰ ϴй н ϯй нθ нϱϯ нθ н ϴй нϭϰ ϰй нϯϯ ǀƐ /ŶĚ ǀŐ ϭ ϱdž нϳ Ͳϭ ϴй D Z'/E &d Z d y W^ й ^hzwz/^ ϴϳ &he ^ Π ϮϬ t/>>/ D KΖE /> н K /E ϯ ϲ ϴ ϯϭϰ Ϭ ϯϲϳ ϱ ϰϲϯ ϳ :ƵƐƚ Ăƚ : ' Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ Ɖƌŝů ϮϬ In the U.K., Just Eat has an estimated market share of 25% in terms of gross merchandize order value (significantly up from 21% in 2015). The Group plans to expand its clinical diagnostic presence in the U.S. through acquisitions. In December 2016, Just Eat announced the acquisition of SkipTheDishes, one of its largest online food delivery competitors in Canada, for 66.1M. With this acquisition, the Company became the market leader in Canada. Canada s online food delivery market is worth more than 1.5B per annum. The Company expects the acquisition, net of integration costs, to be marginally dilutive to EPS in 2017 and In Q3 2017, international orders grew 43% y/y, driven by triple-digit growth from SkipTheDishes. Looking Forward According to Research and Markets, the global food delivery and takeaway market are expected to have a CAGR of 15.25% from 2016 to Growth is expected to be driven by the rising online takeaway delivery market as a result of increasing online penetration and changing consumer habits. The Company s Q results are expected to be released on January 31,

55 UNITED KINGDOM :ƵƐƚ Ăƚ : ' W^ ϱϳ dž ϯϯ ϯϯ Ϯ ϴϮ ϯϯ ϴϭ Ϯϭ Ϭϱ ϱϰ ϭϱ ϳ >KE KE džđś ' ϬϬ <yϱ Eϴϲ ũƶɛƚğăƚɖůđ ĐŽŵ W^ ZĂŶŬ ϯ /ŶƚĞƌŶĞƚͲ ŽŶƚĞŶƚ DŬƚ ĂƉ άϱ ϱϯ ^ĂůĞƐ άϰ D >ŽŶĚŽŶ he/d </E' KD Just Eat ^ŚĂƌĞƐ ϲd &ůžăƚ ϱϱϭd K, ͲϮй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ϬϬ :h^d d W> /^ he/d </E' KDͲ ^ KW Z dkz K& /'/d > D Z< dw> &KZ d < t z &KK >/s Zz d, KDW EzΖ^ ^ 'D Ed^ /E >h d, h< h^dz >/ Θ E t > E ^d >/^, D Z< d^ E s >KW/E' D Z< d^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϬϬ ͲϬ Ϭϭ Ϭ ϬϮ Ϭ Ϭ Ϭϱ Ϭ W^ hz Ϭ ϱϭй Ϭ Ϯϳ й ^, &>Kt ^,Z hz Ϭ ϬϬ Ϭ ϬϬ Ϭ ϬϮ Ϭ Ϭϲ Ϭ Ϭ ϭϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳ Ͳϰй ϭϭй ϯ й Ͳ ϯϭй ϱϯ ^ƚăďŝůŝƚljͿ ϱ ͲϭϮй ϰϰй ϭ Ͳ ϭϰ ^ƚăďŝůŝƚljͿ ϱ ϴϮй ϱθй ϳϰй ϲ ϯϭй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϰϭ ϳϰ ϭϭϲ ϮϬϮ ϯϯϲ ϰϰϭ /Es d K ϳ ϱdž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ϭ Ϭ ϳϴ ϳϴ ϳϳ ϳϳ ϳϴ ϳϱ ϳϱ ϳϴ ϳϴ d y Z d ϭ й й ϯ ϭϲ ϯ ϯϯϳ ϯ ϴ ϯ ϳ ϯ Ϭϰ Ϯ ϱϭ Ϯ ϱ Ϯ ϯϳϯ Ϯ Ϯϱϯ <>K' ϭ ϭ Ϭ ϳ Ϭ ϳ Ϭ ϳ Ϭ ϴ Ϭ ϲ Ϭ ϳ Ϭ ϳ Ϭ ϳ Z Θ ϯ ϯ < s > ϲ ϴϮdž Ζϭϲ Ϯ Ͳϱ Ͳϴ Ͳϴ Ͳϭ ϭϰ ϮϬ ϮϬ /s hz EŽŶĞ /s 'Z Zd ϴ ϴϴ ϴϱ ϴϴ ϴ ϴϴ ϭ Ϯ d Ϭ ϲϲ ϰ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬϳͿ ϲϲ ϰθ ϱϳ ϲϲ ϱϳ ϭ ϭ ϭ ϴϮ ϮϬϭϲ DW>Kz ^ ϭ ϲϯϭ ϭϯйͿ ϬϬ ϭϯϭϭ ϭϭ ϬϬ Ϭ ϴϭϭ ϮϬ Ϭ ' y ϭϯ ϱθ ϭϯ Ϯϴ Ͳϴ ϮϬ Ϭ Ͳϭ Ϭ ϱϯ Ϭ ϭϰ Ϭϰ ϴ ϳϳ ϴ Ϭϳ Ϯ ϳ ϯϳ Ϭ ϰ Ϭ ϲ ϲϳ ϯ ϱ ϲ Ϭ ϱ Ϭ ϰ ϱϲ ϰ Ϯϭ ϯ ϴϲ Ϯ Ϭ Ϭ ϯ ϯϯ Ϭ Ϯ ϴ ϭ Ϯ ϲϯ ϭ Ϯ Ϯϴ Ϯ ϭϭ ϭ ϯ ϭ ϭϯϭ ϭ ϭ ϳϱ Ϭ ϭ ϱθ ϭ ϰϭ D ϴD ϬD ϰd ϮD Ͳϭ ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ ͲϬ Ϭϭ W^ hzͿ W^ й, E' ϳϯ ϳ ^ > ^ D/> hzͿ нθϯй DĂƌ :ƵŶ Ϭ ϬϬ ϱϭ ϱ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ ^ĞƉ ĞĐ Ϭ Ϭϭ ϲϯ ϯ Ϭ ϬϮ ϴϳ Ϯ нϲ Ϭ ϭϭ нϭ ϬϬ ϭϭϯ ϰ нϳ ϭ ϰd ϱ ϬD Ϭ ϬϮ ϭϱϯ Ϯ нϳ ϱ ϭϰd ϯϭϭ ϬD ϯϯϳ ϮD ϯϲϰ D Ϭ Ϭϰ н ϮϬϲ ϱ нϯ ^ĞƉ ϭϲ ϯ ϮD ϰϱϱ ϮϳϭD ĞĐ ϭϲ Ϭ Ϭϴ нϭϲ Ϯϯ ϭ нй DĂƌ ϴ ϮϴϯD ϰ ϮϱϯD :ƵŶ Ϭ Ϭϲ нϱ Ϯ ϴ нϯ ^ĞƉ ĞĐ ϱϳ ϮϬ Ɛƚ ϰθ ϮϬϭϴ Ɛƚ ϱϯ ϱͳljƌ,ŝőś ϭϰϭ Ϭ ϱͳljƌ >Žǁ Ϯϱ Ϭ ϴϲ ϳϭD ϭ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϭϯ Ͳϳϯй ϭθ ϳ нϲ ϱ ϮϱD ǀƐ /ŶĚ ǀŐ ϭ ϴdž :ƵƐƚ Ăƚ : ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -53- Technology: Internet-Content

56 Julius Baer Gruppe SWITZERLAND :ƵůŝƵƐ ĂĞƌ 'ƌƶɖɖğ Z, W^ ϯϯ dž ϳ ϲ ϴϴ ϱ ϰ ϱ ϯϭ ϰ ϲ ϰ Ϭϲ ϯ ϳϱ ϯ ϰϰ ϯ Ϯ ϴϭ Ϯ ϴϭ ^t/^^ ^ džđś,ϭθϰϲθ нϰϭ ϱθ ϴϴϴ ϭϭ ϭϭ W^ ZĂŶŬ ϱϲ ũƶůŝƶɛďăğƌ ĐŽŵ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ DŬƚ ĂƉ,& ϱϯ ^ĂůĞƐ,&ϯ ϯϳ ^t/d Z> E ^ŚĂƌĞƐ ϮD &ůžăƚ ϮD W^ ƵĞ ŝŷ ϳϭ ĂLJƐ ĞͿ D'Dd ŽǁŶƐ ϭ ϭ ϭϯϭ ϭ Ϭ Ϯ Stock exhibits strong technical ratings ϭ ϴϴ ϰϱ ϭ ϭ Ϭϲ Local Code: V Bloomberg Symbol: BAER:SW ISIN: CH Ϭ ϰ O Neil Methodology The stock recently broke out of a six-week flat base. On November 20, after its interim management statement, the stock jumped ~3% on above average volume. The stock is under strong accumulation: its Up/Down Volume ratio and A/D Rating improved to 1.9 and 21, respectively. Its RS line is trending higher and its RS Rating is 70. The Group was able to accelerate earnings growth in recent years through sustainable AUM growth and net new money. It reported average EPS growth of 37% from , compared with 16% in Its EPS Rank currently stands at 56 and is set to improve, as consensus estimates call for EPS growth of 26% and 13% in 2017 and 2018, respectively. At the end of October, AUM grew to a record CHF 393B, a YTD increase of 17%. Growth was primarily driven by significant net inflows, continued positive market performance, and the strengthening of the euro relative to the Swiss franc. нϯ ϰ ϰϲ ϭ ϯϭ Company Overview Julius Baer primarily focuses on servicing and advising sophisticated private clients and independent asset managers. The Group operates in more than 50 locations across 25 countries. With headquarters in Zurich, it has offices in key locations including Dubai, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Milan, Monaco, Montevideo, Moscow, Mumbai, Singapore, and Tokyo. H AUM breakdown: equities, 27%; investment funds, 25%; bonds, 19%; client deposits, 19%; structured products, 6%; money market instruments, 3%; other, 1%.,& нϭ ϰϱ ϭ ϱϲ ϭ ϰϰ Julius Baer (BAER.CH) is the leading Swiss private banking group. It continues to grow by leveraging its regional strengths and client-centric service model. Strong double-digit earnings growth Ϭ estimates for this year and the next ϭ Ϯ Source: Corporate Website Ϭ Ϭ :h>/h^ Z 'ZhWW ' d, 'ZKhWͿ /^ ^t/d Z> E Ͳ ^ WZ/s d E</E' 'ZKhW t/d, E y >h^/s &K h^ KE ^ Zs/ /E' E s/^/e' WZ/s d >/ Ed^ E /E W E Ed ^^ d D E ' Z^ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ ϯϲ ϭ ϴϰ ϭ ϲϳ ϭ ϭ ϯϯ Ϭ ϴϴ ϭ ϲθ ϭ Ϯϳ Ϯ ϴϱ W^,& ϯ ϱ йÿ ϰ Ϭϳ йÿ ^, &>Kt ^,Z,& ϭ ϳϭ Ϯ ϰϲ Ϯ ϳϴ Ϯ ϭ ϲ Ϯ Ϭ Ϯ ϴϲ ϭ ϱϳ ϯ ϳϴ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ Ϯ Ϯϭй ϭ ϭ ϭ ϭ й Ͳ ϯ ϰθ ^ƚăďŝůŝƚljͿ Ͳ ϭ ϰϰ ^ƚăďŝůŝƚljͿ ϭϭй ϭ ϴй ϰй Ϯй ^DZ Z d/e' Ͳϰй ͲϮ ϭ Ͳϭй ϰй ϭ ϭ KDW Z d/e' ^ > ^ D/>Ϳ,& Ϯ ϯϱϱ ϭ ϴϴϰ Ϯ Ϭϳϱ Ϯ Ϭϱϯ Ϯ ϭ Ϯ ϰϲθ Ϯ ϴ ϯ Ϭ ϯ ϭθϳ /Es d K Ϯ ^ĞƉ Ϭϲ KĐƚ KĐƚ ϮϬ KĐƚ Ϯϳ KĐƚ Ϭϯ EŽǀ EŽǀ EŽǀ ϮϬ EŽǀ d й ϰ ϭϭ ϭθϭй ϱϳ ϱϱ ϱϯ ϱϱ ϱθ ϱϯ ϱϯ ϱθ ϱ d y Z d й ϭ ϭ ϴϰϴ ϳϲϭ ϳϭϮ ϲϯ ϳϭϲ ϳ ϳϮϯ ϳϰϳ <>K' ϭ ϳ ϭ ϱ ϭ ϱ ϭ ϴ Ϯ Ϭ Ϯ Ϯ ϭ Ϯ ϭ Ϯ Ϯ Z Θ < s > Ϯ ϰϳdž Ζϭϲ ϭϯ Ͳϯ ϲ Ͳϲ Ͳϭ ͲϮ ϭ ϭϯ Ϯϯ /s,& ϭ ϮϬ Ϯ Ϳ /s 'Z Zdнй ϭϯͿ ϳ ϳϮ ϳϲ ϳ ϳϯ ϳϯ ϲθ ϲϱ d ϭ Ϭϰ Ϯϳ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϰͿ ϲϭ ϱϰ ϱϲ ϱϱ ϱϰ ϰθ ϰϲ ϮϬϭϲ DW>Kz ^ ϲ Ϭ ϭϯйͿ Ϭ ϴϭ Ϭ ϳϱ Ϭ ϲ Stock trending higher along its rising 10-WMA Ϭ ϱ Reported accelerated earnings growth in last three years (37%) compared to last five years (16%) Ϭ ϱϯ Ϭ ϰϳ Ϭ ϰϭ Ϭ Ϭ ϭϱ ϭϯ ϭϭ Ϭ ϯϭ Ϭ Ϯϴ Increase in fund ownership in last four quarters ϰd ϮD ϭ ϴD ϭd нϭϰ Ϯ&/E E / >^ DĂƌ :ƵŶ Ϯ W^,&Ϳ Ϭ ϱϯ й W^ й, E' ͲϮ ϰ^ > ^ D/>,&Ϳϭ ϭ й нй йd Z'/E &d Z d y н ϯй ϲ >KtͲ,/', Ͳϯϭ Ͳϯϲ ϰ&he ^ ϲϳϱ ϰ ^ĞƉ ĞĐ Ϭ Ͳϰ ϯϲͳϰϱ ϭ Ϯϭϱ ϯ нϯ нϲ ϭй ϰϲͳϱϭ ϳϮϭ ϳ Π ϮϬ t/>>/ D KΖE /> н K /E Ϭ ϴϮ нϱ Ͳϰϱ ϭ ϯϳϭ ϳ нϭϯй н ϯϭͳϯϲ Ϯ ϳϰϯ Ϭ ϴϲ нϭϱϯй ϮϱͲϯϭ ϭ ϰϲϭ ϱ нϯ нϭϯ ͲϮϳ ϳϲ ϴϱϴ Ϭ ϭθ Ͳϳϴй ϮϱͲϯϳ ϭ ϱϳϱ ϭ нϭ нϯ ϰϱͳϱϯ ϭϲ ϳϱ Ϭ ϯϳ Ͳϱ ϱϯͳϲθ ϭ ϰϰϭ Ϭ Ͳϭй нϱ ϳϴͲϭ ϭ Ϭ ϭ Ϭϯ ϭ ϲϲ нθй ϮϴͲ ϭ ϱϰ ϴ ͲϮй нϯϯ ϯй ϭθͳ ϭ Ϭϱ ϭ Ϭϲϲ ^ĞƉ ϭϲ ĞĐ ϭϲ ϭ нϯй DĂƌ :ƵŶ ϭ ϲϯ ͲϮй ϭϱͳϭθ ϭ ϱϳ ϳ нϭϭй нϭϲ ϭй Ͳ ϭϲͳϭθ ϭ ϳϳϲ ϳ нϭ н Ͳ ϭ Ϭϯϯ ϭ Ϭϰϲ ϭ Ϭ ϭ ϬϴϮ ^ĞƉ ĞĐ ϭ ϳĞ нϱğ ϭ ϲ ϭğ нϭйğ DĂƌ ϭθ :ƵŶ ϭθ Ϯ ϮϱĞ нйğ ϭ ϳϰ ϬĞ нϭйğ Ϯϭ ϮϬ Ɛƚ ϭϲ ϮϬϭϴ Ɛƚ ϭϰ ϴϰ ϱͳljƌ,ŝőś ϭ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ ϱdž :ƵůŝƵƐ ĂĞƌ 'ƌƶɖɖğ Z,Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ ϮϬ EŽǀĞŵďĞƌ ϮϬ Growth Drivers Julius Baer was backed by a solid capital position at the end of October. The Group s BIS total capital ratio stood at 21.8% and its BIS CET1 capital ratio was 16.4%, above the Company s own minimums of 15% and 11%, respectively, and significantly higher than the regulatory minimums of 12.2% and 8%, respectively. The Group sees Asia accounting for about one-third of its business in the next five years, as it adds staff to tap into rising affluence in the region. Management expects AUM to reach $100B in Asia by Looking Forward The Company revised its medium-term targets during its H earnings call: cost-to-income ratio of 64 68% (down from 65 70%); pretax margin growth (28.4bps in H1 2017) of 30bps by the end of 2018; and net new money growth of 4 6% (6.1% as of H1 2017). Next catalyst: The Company s full-year 2017 results on January 31,

57 SWITZERLAND :ƵůŝƵƐ ĂĞƌ 'ƌƶɖɖğ Z, W^ Ϯ dž ϴ Ϯϴ ϳ ϱ ϲ ϱϱ ϱ ϴϲ ϱ ϰ ϰθ ϰ ϭϰ ϯ ϳ ϯ ϲϲ ϯ ϰϱ нϰϭ ϱθ ϴϴϴ ϭϭ ϭϭ W^ ZĂŶŬ ϲ ^t/^^ ^ džđś,ϭθϰϲθ ũƶůŝƶɛďăğƌ ĐŽŵ y /s ϰ ϮϬϭϴ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ Julius Baer Gruppe DŬƚ ĂƉ,&ϭϰ ϰϭ ^ĂůĞƐ,&ϯ ϯϳ ^t/d Z> E ^ŚĂƌĞƐ ϮD &ůžăƚ ϮD W^ ƵĞ ŝŷ ϭ ĂLJƐ ĞͿ K, ͲϮй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 :h>/h^ Z 'ZhWW ' &KZD Z>z <EKtE ^ :h>/h^ Z 'ZKhW >d :h>/h^ Z 'ZhWW ' d, 'ZKhWͿ /^ ^t/d Z> E Ͳ ^ WZ/s d E</E' 'ZKhW t/d, E y >h^/s &K h^ KE ^ Zs/ /E' E s/^/e' WZ/s d >/ Ed^ E /E W E Ed ^^ d D E ' Z^ DKZ EEh > Ͳ E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϭ ϭ ϭ ϬϮ ϭ Ϭ ϳϭ ϭ ϯ ϭ Ϯ ϲϲ ϯ W^ hz ϯ ϲϳ ϭź ϰ Ϭϲ ϭϭйÿ ^, &>Kt ^,Z hz ϭ ϲϲ Ϯ ϭ ϭ ϲϯ ϭ ϱ Ϯ ϳϴ ϭ ϳϲ ϰ Ϭϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯ Ϯϭй ϭ ϭ ϭ ϭ й Ͳ ϲ ϰϱ ^ƚăďŝůŝƚljͿ ϭ ϴй ϰй Ϯй Ͳ й ϰϱ ^ƚăďŝůŝƚljͿ ϭϭй ͲϮ ϯϭй Ϯй й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ Ϯ ϭ ϲϱ ϭ ϲϭ ϭ ϳϲ Ϯ Ϭϭϰ Ϯ ϳ Ϯ ϳϳ Ϯ ϳϯ /Es d K ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď Ϭϭ d й Ͳ ϭϭ ϭθϭй ϮϬϯй ϱϯ ϱϲ ϱϯ ϱϱ ϱϲ ϱ ϱ ϳϲ d y Z d Ͳ ϭ ϭ й ϴ ϰϭ Ϯϳ ϯϳ Ϯϴ ϴϯ ϭ Ϭ ϭ Ϭϴϯ <>K' Ͳ ϭ ϰ ϭ ϱ ϭ ϰ ϭ ϰ ϭ ϲ ϭ ϭ ϳ ϭ ϳ ϭ ϳ Z Θ < s > Ϯ ϰϭdž Ζ ϭϰ ϯ ϱϰ ϰϭ /s hz ϭ Ϯϭ Ϯ ϮйͿ /s 'Z ZdнϮϭй ϭϭͿ ϲϭ ϲϰ ϲϲ ϲϯ ϲϲ ϳϭ ϳϳ ϳϭ ϳϰ d ϭ Ϭϴ Ϯϴ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϳͿ ϳϲ ϳϲ ϳϴ ϰϰ ϯϯ ϯϱ ϮϬ DW>Kz ^ ϲ Ϭ ϭϯйͿ Ϭ Ϭ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ ϯ Ϯ ϳϲ Ϯ ϰϭ Ϯ Ϭϳ ϲϰ,& нϭ ϳϮϬ нϭ й ϭ ϳϮ ϭ ϱ ϰϲ ϭ ϰϱ ϭ ϯϭ ϳϰ н ϭ ϭ Ϭϯ Ϭ Ϭ ϴϯ Ϭ ϳϲ Ϭ ϲϲ Ϭ ϱ Ϭ ϱϯ ϭϱ Ϭ ϰϱ Ϭ ϰϭ Ϭ ϭϯ ϭϭ Ϭ Ϭ ϯϭ ϲ ϯd ϰd нϲ ϮD ϭd Ϯ&/E E / >^ DĂƌ :ƵŶ ϭ W^ hzͿ Ϭ ϰϯ й W^ й, E' ͲϮ ϯ^ > ^ D/> hzͿ ϰ й нϯ й W^ й ^hzwz/^ нϭϭ ϭй ϯ&he ^ ϲϳϰ Ϯ Ϯ^, Z ^, > z &he ^ ϴϲD ϴϲD ^ĞƉ ϳ ϴϲD ĞĐ Ϭ Ϯϴ Ͳϰ ϭ ϳ нϭθй ϳ D ϭ ϭd Ϭ ϲθ нϱθй ϭ ϭϯ ϲ нй ϳ ϭd ϳϴϲ D Ϭ ϳϭ нϭϱϰй ϭ Ϯϭϱ ϲ нϯϯй ϴϰ ϮD ϱ ϰd Ϭ Ͳϳ ϭ ϱϭϯ ϳ нй ϲϯ ϮD ϭ Ϭϰϴ ϱd Ϭ ͲϱϮй ϭ ϯ Ϯ н ϭ ϬϮϳ ϴD Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϭ Ϭϰϳ ϮD ϭ ϱϯ н ϭ ϰϯϭ Ͳ ϭ ϬϱϮ ϯd ^ĞƉ ϭϲ ϭ Ϭ D ĞĐ ϭϲ ϭ ϭϭ н ϭ ϰ ϯ нй ϭ ϬϮ ϮD DĂƌ ϭ Ϭ ϰd :ƵŶ ϭ ϲθ нϭ ϭ ϲ ϲ н ϭ Ϭϳϯ ϴD ^ĞƉ ϭ ϭϭϲ ϬD ĞĐ ϭ ϱϲ нϰϭй нϯ ϭ ϲ ϬD DĂƌ ϭθ :ƵŶ ϭθ ϭ ϲğ нϭğ ϭ ϱϰϳ ϲğ ͲĞ Ϯϭ ϮϬϭϴ Ɛƚ ϭϱ ϮϬ Ɛƚ ϲ ϱͳljƌ,ŝőś ϭ Ϭ ϱͳljƌ >Žǁ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϭdž :ƵůŝƵƐ ĂĞƌ 'ƌƶɖɖğ Z,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϴ -55- Financial: Banks-Money Center

58 Metro Bank (Wi) UNITED KINGDOM Source: Corporate Website Improving A/D Rating over the last four weeks Good Industry Group Rank and significant improvement from five weeks ago Sharp turn in profitability expected this year Excellent sales growth Stock clears cup pattern on above average volume Metro Bank is an U.K.-based deposit-taking and lending institution. Its ability to meet the banking needs of business, commercial, and retail customers is proving to be an attractive proposition for consumers. Company Overview Metro Bank is retail-focused with assets of more than 14.5B, more than 1.1M customer accounts, and 50 branches across London as of September Loan mix as of September 2017: retail, 66%; commercial, 34%. O Neil Methodology The stock is currently consolidating with support at its 200- DMA. The next level of resistance is at 3,872. The Bank reported a 46% y/y increase in total revenues in Q3 2017, driven by 66% y/y loan growth. With deposit growth of 47% y/y, its loan-to-deposit ratio stands comfortably at 80%, a 900bps y/y improvement. With a growing loan-to-deposit ratio and a declining cost ratio, Metro Bank is on its way to profitability. Consensus estimates have EPS growing 206% and 223% in 2017 and 2018, respectively. This will improve the stock s EPS Rank, which currently stands at 64. Institutional sponsorship increased 58% y/y to 183 in September Growth Drivers Metro Bank focuses on gaining market share from established and traditional retail banks. It aims to grow its share to 1.2% of U.K. deposits by 2020, a CAGR of 40% from Rapidly increasing institutional ownership 10-week MA RS line near highs and excellent RS and A/D Ratings To achieve its market share goal, the bank focuses on quality customer service and user-friendly products. The Bank refers to its branches as stores, modeling them after retail outlets for consumer products rather than traditional bank branches. Stores are open for an average of 76 hours per week, while traditional bank branches are open for hours per week. Another key means of gaining the market share is geographic expansion. The Company has grown from four stores and 9,000 customer accounts in 2010 to 50 stores and 1.1M customer accounts in September In Q3 2017, the Bank added 79,000 customer accounts (highest quarterly growth). The Bank is has a goal of accelerating its loan book growth (85% L/D ratio) to improve its ROE. Looking Forward The bank plans to open five new stores in 2017 and 12 new stores in 2018 and also looks to expand into Birmingham and Bristol. Metro Bank reiterated its 2020 guidance. Next Catalyst: The Company s Q results will be announced on March 5, Local Code: UK:MTRO Bloomberg Symbol: MTRO:LN ISIN: GB00BZ6STL67-56-

59 UNITED KINGDOM DĞƚƌŽ ĂŶŬ tŝͿ DdZK ' W^ ϴ dž ϭϰ ϲϭ ϰθ ϭϯ ϯϲ ϭϭ ϭϭ ϴ ϳ ϴϳ ϲ ϳϰ ϱ ϲϯ ϱ >KE KE džđś ' ϬϬ ϲ^d>ϲϳ ŵğƚƌžďăŷŭžŷůŝŷğ ĐŽ ƵŬ W^ ZĂŶŬ ϲϲ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ DŬƚ ĂƉ άϯ ^ĂůĞƐ άϭ D >ŽŶĚŽŶ he/d </E' KD /ŶĐ ϮϬϬϳ Metro Bank (Wi) ^ŚĂƌĞƐ ϴϴD &ůžăƚ ϲd W^ ƵĞ ŝŷ ϯϭ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 < ϭϯ< ϭϭ< D dzk E< W> d, E<Ϳ /^ WK^/dͲd </E' E > E /E' /E^d/dhd/KE d, E<Ζ^ WZ/E /W > d/s/d/ ^ /E >h WZKs/^/KE K& E</E' E Z > d ^ Zs/ ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ͲϬ ͲϬ ϲϲ ͲϬ ϴϯ ͲϬ W^ hz Ϭ Ϯϯ ϭθθйź Ϭ ϴϰ ź ^, &>Kt ^,Z hz ͲϬ ϴϯ ͲϬ ϲ ͲϬ ϰϰ ͲϬ Ϭϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ͲϭϮ Ͳϱϭй Ͳϯ Ͳ Ͳ ϲϯй Ͳϭ Ͳϭϭй Ͳϯй Ͳ ϲ ϳϮй ϰ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϱϯ ϭ ϮϭϮ Ϯϴ /Es d K ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϲϰ ϲϯ ϳϭ ϳϮ ϳϮ ϲ ϳϭ ϲϳ d y Z d ϭ ϭϭθ ϭϭϱ ϭ ϭϭϯ ϭϭϰ ϭϭϯ ϭ ϭϭϲ <>K' ϭ Ϭ Ϭ Ϭ Ϭ Ϭ ϴ Ϭ ϴ Ϭ ϴ Ϭ ϴ Ϭ ϴ Z Θ < s > ϯ ϲϭdž Ζϭϲ Ͳ Ͳ Ͳϲ Ͳϲ Ͳϱ Ͳϭϭ Ͳ Ͳϭϱ Ͳ /s hz EŽŶĞ /s 'Z Zd ϯϳ ϰϰ ϱ ϲϰ ϱϱ ϱϯ ϰϱ ϱϯ ϰ d Ϭ ϱ ϱ ϬϬͿ >W, ͲϬ ϬϮ ͲϬ ϬϭͿ ϱ ϱϳ ϲϯ ϱϳ ϲϯ ϱϳ ϰϰ ϯϳ ϱϲ ϮϬϭϲ DW>Kz ^ Ϯ ϭϯ ϭͿ < ϬϬ ϬϬ ϬϬ ϬϬ ϬϬ ϰϭ ϰ ϳϮ ϬϬ ϰ Ϯϳ ϰ ϭϰ ϯ ϴϮ ϯ ϲϰϭ ' y Ͳ ϬϬ Ͳϭ ϬϬ ϯ ϯϳ ϬϬ Ϯ Ϯ Ϯ Ϯ ϰϳ ϮϬ ϬϬ ϬϬ ϰ Ϯ ϬϬ ϭ ϭ ϭ ϲ ϭ ϰϲ ϭ ϯϱ ϭ ϭϯϭϭ ϭϭ ϭ ϭϯ ϬϬ ϭ Ϭϭ Ϭ Ϭ Ϭ Ϭ ϳ Ϭ Ϭ ϲϳ Ϭ Ϭ ϱϰ Ϭ ϰ ϰ ϰϰϭ ϮD Ϭ< ϴϴ ϯ< Ϭ< нϳ Ϭ< ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ &/E E / >^ W^ hzͿ W^ й, E' ^ > ^ D/> hzͿ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ :ƵŶ ^ĞƉ ĞĐ ͲϬ ϱϭ ϳ ͲϬ ϲϲ н ϭϯϯ ϴ н ϭ Ϯϳϭ ϬϬϴ ϭϭd ͲϬ Ϯ ^ĞƉ ϭϲ ϲ ϲ ĞĐ ϭϲ Ϭ ϬϬ DĂƌ ϭϲϱ Ϭ :ƵŶ Ϭ Ϭϰ нϭ ϭθϭ ϱ нϯϯй ^ĞƉ Ϭ ϬϴĞ ϭθϯ D ϭθϯ ϮϳD ĞĐ Ϭ ϬϳĞ ϴϳϴ ϮϬ Ɛƚ ϴ ϰϭ ϴĞ ϰ ϰğ ϮϬϭϴ Ɛƚ ϰ ϯ ϱͳljƌ,ŝőś ϯϱ Ϭ ϱͳljƌ >Žǁ ϳϴϯ Ϭ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ͲϬ ϴϯ Ͳй ϮϭϮ ϰ нϳϯй ϴϲ ϭϲd ϭϭϲ ϮϬD ϯ ϮϯD ϭϲϭ ϮϯD ϭθϱ ϮϴD ǀƐ /ŶĚ ǀŐ ϱ ϴdž DĞƚƌŽ ĂŶŬ tŝͿ DdZK ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -57- Financial: Banks-Money Center

60 Nor Finans Holding NORWAY EŽƌ &ŝŷăŷɛ,žůěŝŷő EK&/ EK ZW^ ϰ ϳ dž ϲϯ ϴϯ ϱϱ ϯϯ ϱϭ Ϭϲ ϰϲ ϴϭ ϰϭ ϰϯ ϯϲ ϯϭ ϭ Source: Corporate Website Ϯϳ ϲϲ Ϯϱ ϱϯ Ϯϯ ϰϭ Ϯϭ Ϯϴ K^>K džđś EKϬϬ нϰϳ Ϯ ϯϭϲ W^ ZĂŶŬ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ DŬƚ ĂƉ EK< ^ĂůĞƐ EK<ϯ ϰϱ >LJƐĂŬĞƌ EKZt z /ŶĐ ϮϬϬϳ ^ŚĂƌĞƐ ϭθϳd &ůžăƚ ϭϰϰd W^ ƵĞ Ϯϴ ϮϬĞ K, D'Dd ŽǁŶƐ Ϭ ϭ ϭ Strong ROE and margin ϭ ϭϯϭ ϭ Ϭ ϭ ϳϱ нй EK< н ϬϬ ϬϮ н ϴϴй ϭϰ ϴ High Up/Down Volume rating Best EPS Rank Ͳϭϴй ϳϴ н ͲϮ Norwegian Finans Holding (NOFI.NO) owns Bank Norwegian, with a sole focus on consumer finance. Earnings growth is expected to continue through strong loan growth, stable margins, cost control, and good credit quality. Ϯ Ϭ Ϭ Strong double-digit EPS growth ϭϱ ϯϭ ϭϯ ϳϳ Ϭ EKZt '/ E &/E E^,K> /E' ^ /^ EKZt zͳ ^ E< d, KDW Ez &K h^ ^ KE Ͳ KDD Z E ^ >&Ͳ^ Zs/ ^K>hd/KE^ E K&& Z^ WK^/d KhEd^ E KE^hD Z >K E^ t,/, Z /^dz/ hd d,zkh', d, /Ed ZE d /d >^K WZKs/ ^ KD /E Z /d Z E Z t Z Z &KZ hz/e' d/ < d^ t/d, d, /Z>/E EKZt '/ E /Z ^,hdd> ^ d, KDW EzΖ^ KtE Z^,/W /^ /s/ dt E /E^d/dhd/KE > E WZ/s d /Es ^dkz^ /E EKZt z E ZK /d KW Z d ^ d,zkh', E< EKZt '/ E ^ t,k>>z KtE ^h ^/ / Zz > ^^ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ Ϭ ϱϳ Ϭ ϱ ϭ Ϯ ϬϬ ϯ ϭϰ ϱ ϴϮ йÿ ϴ ϱϰйÿ W^ EK< ^, &>Kt ^,Z EK< Ϭ ϴϳ ϭ Ϯϱ ϭ ϲϭ Ϯ Ϯϳ ϰ ϲθ ϴ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰθй Ϯ ϯϯй ϯ й ϯ ϰ Ͳ ϲϰй ϯ ^ƚăďŝůŝƚljͿ ϰϯй ϯ ϯ ϯ й ϰ Ͳ ϱϯй ϳ ^ƚăďŝůŝƚljͿ ϰ ϯ ϰθй й ϲ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ EK< ϰϲϳ ϲϳ ϱϯ ϭ ϰϭθ ϭ ϴϴϱ ϯ ϭϭϯ /Es d K :ƵŶ Ϯϯ :ƵŶ :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ ƵŐ Ϭϰ ƵŐ ϭϭ ƵŐ ϭϲ d й ϭϲ ϭϯ ϴϭй ϱϱ ϳϭ ϳϱ ϳϱ ϳϯ ϳϮ ϳϯ ϳϭ ϳ d y Z d Ϯ Ϯ й ϯϱϲ ϯϱϯ ϯϱϱ ϯ ϯϯϯ ϳ ϯ Ϭ Ϯϳϴ <>K' Ϯ Ϭ Ϯ ϯ Ϯ ϯ Ϯ ϲ Ϯ ϴ Ϯ ϴ ϯ ϰ Ϯ ϭ Ϯ ϳ Z Θ < s > ϱ dž Ζϭϲ ϲϯ ϱ ϲϯ ϲϳ ϲ ϳϰ ϱ ϳϭ /s EK< EŽŶĞ /s 'Z Zd ϭ ϱ ϲϯ ϲ ϲθ ϲϯ ϲ ϲϲ ϳϴ d Ϭ ϴ ϬϬͿ >W, Ϭ ϬϬ Ϭ ϬϬͿ Ϯϭ Ϯϯ ϭϰ ϭϯ ϭϭ ϭϲ ϭϯ ϮϬϭϲ DW>Kz ^ ϲ Ϳ ϰϲ ϲϰ ϳ ϴ ϰ ϴ Ϭ Best A/D rating ϳ Ϯϯ ϲ ϱ ϱϯ ϱ ϭϭ ϰ ϲθ Strong break out with high volume ϰ Ϭϰ Company Overview Bank Norwegian is a digital retail bank that offers consumer loans, credit cards, and deposit accounts through the Internet in the Nordic market. With no branches and standardized products and automated processes, the Bank has been successful in setting a scalable and cost-efficient business model. As of December 2016, Bank Norwegian had a market share of ~16% in the Norwegian consumer finance market. O Neil Methodology Owing to weakness in the broader market, the stock has witnessed selling pressure in the last few days. The next level of support is at the 50-DMA; any good price volume action at the current level would be an opportunity to accumulate. We also continue to view the stock as our Top Financial Pick. The stock has a top EPS Rank of 99. The Company has been able to accelerate earnings growth in the recent years through sustainable loan growth via geographic expansion. The Company reported average EPS growth of 65% from FY , compared with 54% from FY Consensus expects 2017 and 2018 EPS to grow 56% and 18%, y/y, respectively. The earnings stability factor stands at 3 for a three-year period, indicating a stable earning history. This is primarily due to a consistent increase in its customer base q/q. Robust loan growth (42% y/y in Q3 2017) and a best-in-class cost-to-income ratio (27%), coupled with a positive outlook for the Nordic market, will drive the Company going forward. Local Code: NO:NOFI Bloomberg Symbol: NOFI:NO ISIN: NO ϯ ϬD Ϭ< нϯϯ ϰϭϭ< ϮϬϬ< Ϭ< Ϯ&/E E / >^ ĞĐ ϭϯ Ϭ ϱ W^ EK<Ϳ DĂƌ :ƵŶ ^ĞƉ ĞĐ ϭ нϲ W^ й, E' ϲϳ Ϯ ^ > ^ D/> EK<Ϳ нϰ Ϭ Ϭ ϰϳ Ϭ ϱϰ Ϭ нϰ нϯϯ ϰй D Z'/E &d Z d y Ϭ ϲϯ Ϭ ϳϲ Ϭ ϳϱ Ϭ ϳ Ϭ ϱ ϭ ϰ ^ĞƉ ϭϲ ϭ ĞĐ ϭϲ ϭ ϲϯ DĂƌ ϭ ϳϴ :ƵŶ Ϯ Ğ ^ĞƉ Ϯ Ğ ĞĐ Ϯ Ğ DĂƌ ϭθ Ϯ ϮϬĞ нϲ нϲϯй нϯ нϲϯй нϱϭй н нθϰй нϲ нθ нϰϯйğ нϱϰйğ нϯğ нйğ ϱϯ нϯ Ϯ ϴ ϯϯϱ Ϭ ϯϲ ϰϭϯ ϱ ϰϭϱ ϴ нϯ ϰϰ Ϯ нй ϰϲ Ϯ нϯ ϱϰϱ Ϯ нϯ ϲ ϲ нϰθй ϳ Ϭ нϱ ϴ нϳϯй ϰ нϲ ϭ ϬϮϬ ϱ нϲ нϯϱ нϯϭ ϴй н нϯϱ ϰй нϯϱ н ϯй нϯ Ϯй нϯϳ н ϴй н нϯϲ ϯй н ϰй нϯϭ нϯϭ ϭϱͳϭθ Ͳϭϲ Ͳ ϯϲ ϯ >KtͲ,/', &he ^ ϭ ϭ ϰ ϱ ϴ ϭϱ ϰϯ ϴĞ нϯϯйğ ϭ Ϭ ϬĞ нϯğ ϭ ϬϲϮ ϴĞ нϭğ ϭϰ ϮϬ Ɛƚ ϭϭ ϭ ϮϬϭϴ Ɛƚ ϯ ϱͳljƌ,ŝőś ϭθ ϱͳljƌ >Žǁ ϱϯ ǀƐ /ŶĚ ǀŐ ϭ Ϯdž нϯϯ ϭй W^ й ^hzwz/^ &Z ^, &>Kt ^,Z нϯ Z dhze KE Yh/dz dϰy нϯ нϯ нϯ нй нϯ нϯ нϰ нй нй нй нй нϰ нϰϭй нϯ нϯ нϰθй нϰϭй нϰ нϰϯй 'ZK^^ D Z'/E /d D Z'/E WZ d y D Z'/E s /d Π ϮϬ t/>>/ D KΖE /> н K /E EŽƌ &ŝŷăŷɛ,žůěŝŷő EK&/ EKͿ tğğŭůlj ĂƐ ŽĨ tğě ƵŐƵƐƚ ϭϲ ϮϬ Growth Drivers The bank s customer self-service concept, with few and simple products, enables it to expand its geographical reach with limited workforce and gives rise to a strong, scalable business model. As a result, the bank has rapidly increased its customer base. In Q3 2017, it added 73,800 new customers. Bank Norwegian s four markets, Norway, Sweden, Denmark, and Finland, are characterized as countries with creditor-friendly laws and bankruptcy proceedings. The bankruptcy system is based on liquidation of the debtor s assets and is generally considered creditor-friendly when compared with other European countries. Bank Norwegian s ROE has seen a strong increase since it started operations in At the end of 2016, average ROE was 36.4% (39.2% at the end of Q3 2017). Komplett Bank and Nordax Group had ROE of 26.7% and 18.8%, respectively. Looking Forward Bank Norwegian, in alliance with Norwegian Air, offers a combined credit card and reward card, a powerful combination in terms of cross-selling and brand recognition. The next catalyst is the Company s Q earnings release on February 23,

61 NORWAY EŽƌ &ŝŷăŷɛ,žůěŝŷő EK&/ EK W^ dž ϯϯ ϯϭ Ϯ Ϯϯ ϭϱ Ϯϯ Ϭϴ ϮϬ ϬϬ ϭθ ϰϲ ϭϲ Ϯ ϭϰ ϲϯ Ϭϴ K^>K džđś EKϬϬ нϰϳ Ϯ ϯϭϲ W^ ZĂŶŬ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ Nor Finans Holding DŬƚ ĂƉ EK<ϭϲ Ϯϱ ^ĂůĞƐ EK<ϰ >LJƐĂŬĞƌ EKZt z /ŶĐ ϮϬϬϳ ^ŚĂƌĞƐ ϭθϳd &ůžăƚ ϭϱϳd W^ ƵĞ ŝŷ Ϯϭ ĂLJƐ ĞͿ K, Ͳϭ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 EKZt '/ E &/E E^,K> /E' ^ EKZt '/ E &/E E^,K> /E' ^ /^ EKZt z Ͳ ^ E< d, KDW Ez &K h^ ^ KE Ͳ KDD Z E ^ >&Ͳ^ Zs/ ^K>hd/KE^ E K&& Z^ WK^/d KhEd^ E KE^hD Z >K E^ t,/, Z /^dz/ hd d,zkh', d, /Ed ZE d DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϳ Ϭ Ϭ Ϭ Ϭ ϯϯ Ϭ ϱ W^ hz Ϭ ϴϳ ϰź ϭ Ϭϰ Ϯź ^, &>Kt ^,Z hz Ϭ ϭϭ Ϭ Ϭ Ϭ Ϯϱ Ϭ ϰ Ϭ ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯ ϯϯй ϯ й ϯ ϰ Ͳ ϲ ϯ ^ƚăďŝůŝƚljͿ ϱϭй ϯ ϯ ϯ й ϰ Ͳ ϱ ϳ ^ƚăďŝůŝƚljͿ ϰ ϱθй Ϯ ϯ й ϳ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϱ ϭϭϰ ϭϱϱ ϲ ϯ /Es d K ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϭϲ ϭϯ ϴϭй ϱϯ ϱθ ϱϲ ϲϭ ϳϭ ϲ ϲ d y Z d Ϯ Ϯ й ϯ ϱ ϴ ϴ ϱϯϳ ϱϭϱ ϱϰϲ ϱ ϱϯϯ <>K' Ϭ ϴ Ϭ ϴ Ϭ ϳ Ϭ ϳ Ϭ ϴ Ϭ ϴ Ϭ ϲ Ϭ ϳ Ϭ ϳ Z Θ < s > ϱ dž Ζϭϲ Ͳ Ͳϯ Ϯ ϴ ϴ ͲϮϬ Ͳ ͲϮϬ /s hz EŽŶĞ /s 'Z Zd ϳϭ ϳϮ ϲϱ ϳϴ ϳϴ ϳϯ ϱ ϱϭ ϱϯ d Ϭ ϬϬͿ >W, Ϭ Ϭϯ Ϭ ϬϭͿ Ϯϳ Ϯϳ ϯϲ ϯϳ ϰϯ ϯϲ ϰϭ ϯϱ ϮϬϭϲ DW>Kz ^ ϲ Ϳ Ϭ ϯ Ϭ Ϭ Ϯ Ϭ Ϭ Ϭ ϭ ϭϭ ϱϰ ϭ ϬϬ Ϯϯ ϴ ϰϲ ϭ ϭϯϭ ϭ ϳ ϴϮ ϳ ϲ Ϭ ϲ Ϯ ϴϳ Ϭϱ ϲ ϭϱ EK< Ͳϭ ϰϱ ϱ ϰ ϲϯ ϱϯ ϯ ϴϱ ϯ ϱϰ Ͳϭ ϲϰй ϰϲ ϯ Ϯϯ Ϯ Ϯ Ϯ ϲϯ Ϯ ϯϭ Ϯ ϬϬ ϭ ϴϱ ϭ ϲ ϭ ϰϲ ϭ ϯϭ ϭ ϭϱ ϭϱ ϮD Ϯ ϭd ϭd Ͳϭ Ϭ< ϮϬϬ< Ϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ W^ hzͿ нθ W^ й, E' ϱ Ϭ ^ > ^ D/> hzͿ нϱθй :ƵŶ ^ĞƉ W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ ĞĐ Ϭ нϯϭй ϭϭϰ Ϭ нϯ Ϭ Ϭϱ ϯϲ ϯ Ϭ Ϭϲ ϯ Ϭ Ϭϳ Ϭ Ϭ нϱ ϱϭ Ϯ нϯ Ϭ Ϭϴ н ϰ ϯ нθй Ϭ нϰϯй ϱϲ ϳ нϯθй Ϭ нϰϯй ϲϱ ϭ нϯ ϭ ϭ ϰ ϱ ϯ ϱ ϭθϰ ϯ Ϯϳϰ ϭθϰ ϱ ϲϳθ Ϭ ϰ ϲ Ϭ ϴ ϭϰd D ϭϱ ϭθd ϰϱ ϲ Ϭ Ϭϳ ϰϰ ϱ Ϭ Ϭϳ нϰ ϰϳ нϯϯй Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϭϲ нϳθй ϴϯ ϴ нϲϰй нϯϯ ϭй ϮϬD ^ĞƉ ϭϲ Ϭ ϭϱ нθ ϳ нθϰй ĞĐ ϭϲ Ϭ ϭθ нй Ϭ Ϯ нϳ DĂƌ Ϭ н ϭϭϭ ϭ нϳϭй ϮϭD ϯϳ ϮϭD ϰϭ ϮϭD :ƵŶ Ϭ нй ϭϭϲ ϳ нϯ нϯ ϲϰ ϮϬD ^ĞƉ Ϭ Ϯϱ нϲ ϭ ϴ нй ĞĐ Ϭ ϮϯĞ нϯθйğ ϱ ϲğ нğ ϴ D ϭ D DĂƌ ϭθ Ϭ Ğ нϭğ ϭϭϱ ϲğ нϰйğ ϭϲ ϮϬϭϴ Ɛƚ ϴ ϮϬ Ɛƚ ϳ ϱͳljƌ,ŝőś ϭθ Ϭ ϱͳljƌ >Žǁ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϳdž EŽƌ &ŝŷăŷɛ,žůěŝŷő EK&/ EKͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -59- Financial: Banks-Money Center

62 Wirecard (Xet) GERMANY Best EPS Rank Source: Corporate Website Strong earnings estimates Acceleration in earnings and sales growth over last three years. Cleared cup-with-handle on 2.7x average volume Wirecard (WDIX.DE) is one of the leading and fastest-growing technology companies for electronic payment processing and solutions. The Company continues to grow, driven by an accelerating global trend for the digitalization of payment processes. 10-week MA 40-week MA A/D and RS Ratings and Industry Group at eight-week highs RS line trending higher and solid A/D Rating Company Overview The Company is present across all areas of the value chain in electronic payment processing. Further, the Company supports the acceptance of electronic payments from all distribution channels and generates revenues based on transaction value and percentage-based fees. 9M 2017 transaction volume by industry: Consumer goods, 50% (52% y/y growth); digital goods, 32% (+39%); travel and mobility, 18% (+32%). O Neil Methodology The stock is trading constructively along its rising 50-DMA on strong technical characteristics. At 86% above the pivot, it is, however, too extended to initiate a position at this level, and we would recommend waiting for shares to consolidate. The stock continues to remain our top financial pick in the region. Wirecard has solid average earnings growth of 40% over the past three years. During the same period, sales grew an average of 32%. The Company boasts an EPS Rank of 89. Consensus expects 2018 EPS to grow 30% y/y. In Q3 2017, revenues increased 52% y/y (+19% q/q) to 405.9M, ~6% above consensus expectations. EBITDA grew 35% y/y to 110.1M. For the first nine months of 2017, revenue and EBITDA grew 42% and 34%, y/y, respectively. Transaction volume processed through the Wirecard platform in the first nine months of 2017 grew 43.5% to 62.5B. Growth was primarily driven by an accelerating global trend for the digitalization of payment processes. Increasing institutional ownership, especially over last two quarters Excellent earnings and sales growth rates Growth Drivers Operative highlights during the first nine months of 2017 include: The Company achieved its operating targets and increased its medium and large customers to about 34K while also expanding its small customers to 180K. It also concluded additional agreements with Rakuten, Festo, RwandAir, T-Systems, Rossmann, Gulf Air, and Value Retail, among others. On March 13, Wirecard acquired Citi s customer portfolio of merchant acquiring business in 11 markets in APAC. The deal is expected to generate large cross- and up-selling opportunities for both the Company s new and legacy Citi merchants. The transaction is set to close in June 2018 and comprises a customer portfolio of 20,000 retailers. The estimated EBITDA contribution from the deal is more than $20M (for the 12 months post the close of the deal). Looking Forward Management expects a strong FY 2017 and confirms its increase of EBITDA guidance (released on October 26,) of 398M 415M. The next catalyst is the Company s FY 2017 earnings release on April 22, Local Code: D Bloomberg Symbol: WDI:GR ISIN: DE

63 GERMANY tŝƌğđăƌě yğƚͿ t /y W^ ϯϲ dž ϲ ϲϳ ϲ ϭϭ ϱ Ϯϴ ϰ ϳϮ ϰ ϯ ϲϭ ϯ ϯϯ ϯ Ϭϲ Ϯ ϳϴ Ϯ y dz džđś ϬϬϬϳϰϳϮϬ нϰ ϴ ϰϰ ϬϰϬϬ W^ ZĂŶŬ ϴ &ŝŷăŷđğͳ ƌěƚ ĂƌĚ WŵƚWƌ ǁŝƌĞĐĂƌĚ ĚĞ Wirecard (Xet) DŬƚ ĂƉ Φϭϭ ϴϴ ^ĂůĞƐ Φϭ ϯϯ ' ZD Ez /ŶĐ ϮϬϬϳ ^ŚĂƌĞƐ ϭd &ůžăƚ ϭϭϱd K, Ͳй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ Ϭ t/z Z ' /^ ' ZD EzͲ ^ WZKs/ Z K& > dzke/ W zd Ed E Z/^< D E ' D Ed WW>/ d/ke^ t/d, &K h^ KE d, s >KWD Ed E WZKs/^/KE K& d,ek>k'/ ^ E ^ Zs/ ^ &KZ W zd Ed dz E^ d/ke^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭ ϰϱ Ϭ ϱϯ Ϭ Ϭ ϲϳ Ϭ ϳϰ Ϭ ϴ ϭ ϭϲ Ϯ ϭϲ W^ hz Ϯ ͲϯйŸ Ϯ ϳϳ ϯϯй ^, &>Kt ^,Z hz Ϭ Ϭ ϱϯ Ϭ ϲϱ Ϭ ϲϯ Ϭ ϴϴ ϭ Ϭϭ ϭ ϭ ϲϯ Ϯ Ϯϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯ й й Ϯϯй Ϯϯй Ϯ Ϯϭй й Ϯ Ͳ ϰ ^ƚăďŝůŝƚljͿ ϯϯй Ϯϯй Ϯ Ϯ й ϭ й ϭϯй й Ͳ ϯ ^ƚăďŝůŝƚljͿ Ϯϴй ϰ ϭ й Ϯ Ϯϭй й Ϯ Ϯϴй ϯϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϳ ϮϳϮ ϯϯϱ ϯϱ ϰθϯ ϭ ϳϳϭ ϭ ϬϮϴ /Es d K ϭϰϰ dž ϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ϯ ϰ ϳϳ ϳϲ ϳϰ ϳϰ ϳϳ ϳϳ ϳϯ ϳϮ ϳϮ d y Z d ϭϯй ϳϯϲ ϳϳϳ ϳϴϭ ϳϲϳ ϳϱϭ ϳϲϮ ϳϲ ϳϮ ϴϭϰ <>K' Ϯ Ϭ Ϯ ϭ ϭ ϭ Ϯ Ϯ Ϯ ϭ Ϯ Ϯ Ϯ Ϭ ϭ ϲ Z Θ ϱ ϭ < s > ϴ Ϯϳdž Ζϭϲ Ϯϳ ϮϬ ϮϬ Ϯϳ ϭϱ Ϯϯ Ͳϭϭ /s hz Ϭ ϭϲ Ϭ ϮйͿ /s 'Z Zdн ϯͿ ϰ ϰ ϰ ϰ ϰ ϰ ϱ ϯ ϯ d Ϭ ϬϬͿ >W, Ϭ Ϭ ϭθͿ ϭϲ ϭθ ϯϭ Ϯϳ ϯ ϯ ϯϭ ϮϬϭϲ DW>Kz ^ ϯ ϳϲϲ ϲϰйͿ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ ϲ ϭϰ hz Ͳϭ ϯϯ Ͳϭ ϯ Ϯ ϭ ϰ ϭ ϳϳ ϭ ϲϳ ϭ ϯ ϭ Ϯϴ ϰϲ ϭ ϯ Ͳ ϭ Ϭϲ Ϭ ϰ Ϭ ϴϯ Ϭ ϳϮ Ϭ ϲϳ Ϭ ϲϭ Ϭ ϱϯ Ϭ ϰϳ Ϭ ϭϱ Ϭ ϯϲ Ϭ ϯϯ Ϭ ϯϭ ϭϯ ϭϭ Ϭ Ϯϴ Ϭ Ϯϱ Ϭ ϴ ϯ ϲd ϯd Ͳ Ϭ< Ϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ ϭθ Ϭ ϭϱ W^ hzͿ Ͳ W^ й, E' ϭϭϰ ϲ ϭ ϭ ^ > ^ D/> hzͿ нй нϯϭй Ͳ ϴй Ͳ ϭй W^ й ^hzwz/^ ϯ &he ^ ϯ ϱϯ ϲ ϴϮϬ ϲϭd ^, Z ^, > z &he ^ :ƵŶ Ϭ нй ϭϭϱ ϭ нй Ͳϰ ϯ ϲϯd ^ĞƉ Ϭ н ϭϯϱ Ϭ нϯϯй Ͳ ϭ ϲϭd ĞĐ Ϭ Ϯϯ нϯθй ϭϰϭ ϲ нϯϯй нϯ Ϯй ϰϭϭ ϲϯd Ϭ ϭθ нϯ ϭ Ϯ нϯ Ϭ ϳ ϲϯd Ϭ нϭϯй ϭ ϲ нй Ͳ ϴй ϰϲ ϲϰd Ϭ нй ϭϱϱ ϰ нй ͲϮ ϴй ϰθϯ ϲϱd Ϭ Ϯϳ нϭ ϲ ϴ нй Ͳϭ ϭй ϰ ϲϳd Ϭ Ϯϯ нϯθй ϭϱ ϰ нй Ͳϲ ϱ ϱθd Ϭ нϯ ϭ ϳ нϯ Ͳϱ ϱ ϱϰd Ϭ нϯ ϮϬϬ нϯ ͲϮ ϴй ϲ ϱθd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϯϲ нϯϯй Ϯ ϰ нϯ Ϭ нϯ Ϯ ϱ нϯϯй ϲϱϰ ϲd ϲ ϳϯD ϭ Ϭϱ нϰй ϭ ϯ нй Ͳϭϭ ϭй ϲϯϭ ϳϱD ^ĞƉ ϭϲ Ϭ ϰϭ нϯϯй ϳ ϲ нϯϯй ĞĐ ϭϲ Ϭ ϰϭ н Ϭ нй ϲϲϳ ϳϯD ϳ ϳϮD DĂƌ Ϭ ϯ нϯ Ϯϳϰ нϯϭй нϯ ϰй ϳϮϬ ϳϰD :ƵŶ Ϭ ϰϱ Ͳϱ Ϭ ϲ нϰϭй ^ĞƉ Ϭ ϱϯ нϯ ϰϭϱ нϱϯй ĞĐ Ϭ ϲϱğ нϱğ ϰϰθ ϭğ нϰğ ϳϰϱ ϲθd ϳϳϱ ϲϲd ϲϲd DĂƌ ϭθ Ϭ ϱϲğ нϰϰйğ Ϭ ϲğ нθϯйğ ϰθ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ Ϯϳ Ϭϱ ϱͳljƌ,ŝőś ϰϱ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ ǀƐ /ŶĚ ǀŐ Ϯ Ϭdž tŝƌğđăƌě yğƚͿ t /y Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -61- Financial: Finance-CrdtCard/PmtPr

64 Straumann Hldg. SWITZERLAND Best EPS Rank Source: Corporate Website Straumann is the leader in the dental implant market premium segment, with a market share of 23%. The expansion, into apically tapered implants segment, through the BLT implant is expected to contribute substantially to the Group s growth in the forthcoming years. Company Overview Straumann Holding develops and manufactures dental implants, instruments, prosthetics, and biomaterials used in tooth replacement and restoration solutions. The Company has a broad portfolio of global and international brands, and provides products and services in more than 100 countries. Straumann ranks among the top-three global implant companies in the non-premium segment through Instradent platform and its partners. Its Q revenue breakdown by geography: EMEA 44%, North America 27%, APAC 17%, and Latin America 12%. O Neil Methodology The Company s revenues and EPS grew at an average of 14% and 31%, respectively, from 2015 to Its EPS Rank is currently at 64 (99 being the best), with the consensus estimate calling for an EPS growth of 4% and 15% in 2017 and 2018, respectively. Technical ratings and rankings are strong, with an RS Rating of 93, A/D Rating of B-, and Up/Down volume of 1.0 In its H results on August 17, 2017, revenues came in at CHF 543M (+18% y/y), fuelled by double digit increases across all business. The net profit was CHF 141M (+24% y/y), bringing in the corresponding margin to 22% and EPS to CHF Growth Drivers Bone level tapered (BLT) implants were rolled out in North America in 2015, and, by year-end, every fifth Straumann implant sold was a BLT. It gained a 2.4% market share in the apically tapered market and then doubled their market share to 4.7% in 2016 after launching BLT in Japan and China. The management expects it to double to 8% in the next few years. Straumann invested in Anthogyr (France) in 2016, to gain access to Chinese fast growing non-premium market. Also, through Equinox acquisition, it entered into one of the least-penetrated Indian dental implant market. Improving industry group rank 10-week MA Shares under accumulation 40-week MA Strong earnings estimates Accelerating earnings and sales growth Clears consolidation on almost 3x average volume RS line close to highs and excellent A/D Rating Surging institutional ownership In August 2017, the Company entered digital orthodontic dentistry by acquiring ClearCorrect for a total consideration of ~$150M. ClearCorrect is a well-established provider of clear-aligner tooth-correction solutions and generated sales of $32M in It has also acquired a 38% stake in Geniova Technologies of Spain, a pioneer of innovative hybrid aligners, in return for a capital injection. The deal includes the right for the Company to become the exclusive distributor of Geniova products. Both ClearCorrect and Geniova acquisitions are expected to be completed by the end of 2017, leading to the Company s expansion in the dentistry segment. Looking Forward The global market for dentistry is about CHF 24B, of which implants markets account for a 15% share. Management expects the global implant market to grow ~3-4% in 2017 and has reiterated its 2017 guidance of organic growth in a low double-digit range. Next Catalyst: The investor meeting in Edinburgh and London are to be held on September 12, 2017 and September 13, 2017, respectively. Its Q results are expected on October 26, Local Code: V Bloomberg Symbol: STMN:SW ISIN: CH

65 SWITZERLAND ^ƚƌăƶŵăŷŷ,ůěő ^dde, W^ ϯϯ dž ϰϱ ϰϱ ϯ ϯ ϯϲ ϯϲ ϯϯ ϯϯ Ϯϳ Ϯϳ Ϯϭ Ϯϭ ϭθ ϭθ нϰϭ ϲϭ ϲϱ ϭϭ ϭϭ W^ ZĂŶŬ ϲ ^t/^^ ^ džđś,ϭϭϳϲ ƐƚƌĂƵŵĂŶŶ ĐŚ DĞĚŝĐĂůͲWƌŽĚƵĐƚƐ DŬƚ ĂƉ,& ϴϭ ^ĂůĞƐ,& ϲϰd ĂƐĞů ^t/d Z> E Straumann Hldg. ^ŚĂƌĞƐ ϭϲd &ůžăƚ ϭϭd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ^dz hd EE,K> /E' ' /^ ^t/d Z> E Ͳ ^ KDW Ez d/s /E d, &/ > K& /DW> Ed E Z ^dkz d/s Ed/^dZz E KZ > d/^^h Z ' E Z d/ke DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϯϱ ϲ ϯϯ ϲ ϲ ϯ ϳϰ Ϯ Ϭϭ ϱ ϴ ϰϰ ϰ ϭϱ W^ hz ϱϰ ͲϭйŸ ϭϱ ϭθйÿ ^, &>Kt ^,Z hz ϲ ϲ Ϯϯ ϳ Ϯϭ ϱ ϱ ϴ ϯϯ ϲϭ ϯ ϱϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй й й ϭϭй ϴй ϭθй Ϯ ϭ й Ͳ ϯϭй ^ƚăďŝůŝƚljͿ ϭй Ϯ Ϯ ϭ ϭ Ϯϯй ϭϭй ϯ Ͳ ϯ ^ƚăďŝůŝƚljͿ ϴй й Ͳ й Ͳϯй ͲϮй й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϱ ϰϲ ϱ ϱϳϭ ϱϲ ϱϱϱ ϱϭ ϳ ϴϱϲ /Es d K ϭ dž ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď Ϭϭ d й Ϯ ϯϯй ϯϯй ϲθ ϲϲ ϲ ϲ ϲθ ϲθ ϲθ ϲϲ d y Z d ϭϭй ϭϭй ϰϭ ϰϯ ϰϯ ϰϯ ϰϭ ϯ <>K' ϭ ϱ ϭ Ϯ ϭ Ϯ ϭ ϯ ϭ ϯ ϭ Ϭ ϭ ϭ ϭ Ϭ Ϭ Z Θ < s > ϭϲ ϰϳdž Ζϭϲ ϭ ͲϮϱ ͲϮϱ ͲϮϱ ͲϭϮ Ͳ Ϯ Ͳϲ ͲϮϭ /s hz ϯ ϲϳ Ϭ Ϳ /s 'Z ZdнϭϮй ϭϱͿ ϯ ϴ ϴϴ ϴϴ ϴϴ ϴϱ ϴ ϴϲ ϴϮ d ϭ Ϭϴ ϬϬͿ >W, Ϭ ϭϱ Ϭ ϭϭͿ ϴϰ ϴϰ ϴϲ ϲ ϳϳ ϴϱ ϴϱ ϳϮ ϱϲ ϮϬϭϲ DW>Kz ^ ϯ ϳϳ Ϳ ϭϯϭϭ ϭϭ ϬϬ Ϭ Ϭ Ϭ ϲθϭ ϬϬ,& Ϭ Ͳϯϲ ϬϬ Ͳϱ ϬϮй ϭϱ ϭϱ ϭϱ ϰ Ϭ ϰ ϭϯ ϳϯ Ϭ ϭϭ ϱϯ ϯ ϴϮ Ͳ Ϭ Ϭ Ϭ ϳ ϴϴ ϳ Ϯϳ ϲ ϲϳ Ϯ Ϭ Ϭ ϱ ϳϲ Ϭ ϱ ϭϱ ϭ ϰ ϱϱ ϭ ϯ ϰ ϯ ϲϰ ϯ ϯϯ ϭ ϭϯϭ ϭ ϯ Ϭϯ Ϭ Ϯ ϳϯ Ϯ Ϯ ϭϯ ϭ ϴϮ ϭ ϰϱ ϰθ Ϭ< ϭθϭ Ϭ< Ϭ< нϯ < ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ :ƵŶ ^ĞƉ ĞĐ &/E E / >^ ͲϬ ϯ Ϯ ϴϮ Ϯ ϱϭ ϯ ϲϰ ϰ ϳϳ ͲϬ ϰ ϳ Ϯ W^ hzͿ ͲϭϮϯй нϯ нϳϰϰй нϯ н Ͳϯй Ͳϭϭй нθ ϬϮ W^ й, E' Ϭ Ϯϴϴ ϱ ϱ ϯ Ϯϱ ϴ ϮϮ ϭ ϯϳϰ ϭ ϯϲθ Ϭ ϲ Ϯ ^ > ^ D/> hzͿ Ͳϰй Ͳϭй нϯй нϭ нй нй н Ͳϱϱ ϰй нϭϯ ϰй н W^ й ^hzwz/^ ϯϭθ ϭ ϮϭϮ ϴ ϭθϰ ϳ Ϯϯϲ Ϯ Ϯϳϱ ϯϯϭ ϯϯϳ ϯϳϭ ϰϭϳ &he ^ ϲϰϭ ϳϲϮ ϭ ϱϲ ϰ Ϯ ϯ Ϯ ϴ ϰθϰ ϯ ϯϳϲ ϯϯϱ ϯ ϭ ϲ ϯ ϲ ϮϳϮ ϯ ϳϳ Ϭϳϲ ϯ ϴϮϴ ϯ ϯϱ Ϭϭϲ ϯ ϳ ϯ ϰ Ϭϯ Ϭϰ ϯ ϳϭϴ Ϭ ϰ Ϭ ϱ ϯ ϲϰϳ ϴϲϱ ϯ ϱϭϯ ϯϲ ^, Z ^, > z &he ^ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ^ĞƉ ϭϲ ĞĐ ϭϲ ϱ нй ϱ ϲ нϭ DĂƌ :ƵŶ ϴ н ϰϳ ϱ нϭ ^ĞƉ ĞĐ ϲ ϯϱğ нϭϭйğ ϰϱϳ ϭğ нğ ϰϯ ϮϬ Ɛƚ ϰϯ ϰϭ ϮϬϭϴ Ɛƚ ϯϲ ϳϰ ϱͳljƌ,ŝőś ϲ Ϭ ϱͳljƌ >Žǁ Ϭ ϰϱϰ ϰ ϰϭ ϳϲϮ ϯ ϳϲϰ ϲϲ ϰ Ϭϱϰ ϱϯϭ ϰ Ϯϯϱ ϲθϳ ϰ ϰϱϰ Ϯ ϴϳϴ ϰ ϴϭϲ ϯϲϯ ǀƐ /ŶĚ ǀŐ ^ƚƌăƶŵăŷŷ,ůěő ^dde,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϴ -63- Health Care: Medical-Products

66 Biomerieux FRANCE ŝžŵğƌŝğƶdž /D &Z W^ Ϯϭ dž Ϯϭ ϮϬ ϬϬ ϭθ ϭϲ ϭϰ Ϯ ϭϯ ϭϭ ϰϯ ϰθ Ϭϱ W Z/^Ͳ^ & džđś &ZϬϬϬϲϰϳ нϯϯ ϰ ϳϴ ϴϳ ϮϬ ϬϬ W^ ZĂŶŬ ϯ DĞĚŝĐĂůͲWƌŽĚƵĐƚƐ ďŝžŵğƌŝğƶdž Ĩƌ DŬƚ ĂƉ Φϱ ^ĂůĞƐ Φϭ ϲ &Z E ^ŚĂƌĞƐ ϯd &ůžăƚ ϭϰd K, Ͳϭй D'Dd ŽǁŶƐ /KD Z/ hy ^ /^ &Z E Ͳ ^ KDW Ez d, d ^W / >/ ^ /E d, &/ > K& /EͲs/dZK / 'EK^d/ ^ &KZ D / > E /E h^dz/ > WW>/ d/ke^ EEh > Ͳ E ϮϬϬϳ ϮϬϬϴ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ Ϯ ϰθ ϯ Ϯ ϯ ϳϱ ϰ Ϭϯ ϰ Ϭϭ ϯ ϰϭ ϰ ϭϲ ϯ Ϯ W^ hz ϰ ϱϯ ϲϯй ϱ Ϯϳ ϭ ^, &>Kt ^,Z hz ϰ ϱ ϭϰ ϱ ϯϲ ϲ ϬϮ ϰ ϳϰ ϰ ϱ ϱ Ϭϲ ϱ ϲ ϱϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭ ϭθй ϭθй ϭ ϭ ϭϭй Ͳϭϱ Ͳϰй ϴ ^ƚăďŝůŝƚljͿ ϴй ϭ Ϯ Ϯ ϭθй ϭ ϭϯй ϭ ϴй Ͳϭϱ Ͳ ϳ ^ƚăďŝůŝƚljͿ Ϯй ϰй ϭ ϭϭй ϭ ϭй ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ Ϭϲϯ ϭ ϭϭϭ ϭ ϯ ϭ ϯϱϳ ϭ ϳ ϭ ϱ ϭ ϱθθ ϭ ϲθ ϭ ϲϱ /Es d K Ϯ ϲdž :Ƶů Ϭϴ :Ƶů ϭϱ :Ƶů :Ƶů Ϯ ƵŐ Ϭϱ ƵŐ ϭϯ ƵŐ ƵŐ ƵŐ ϯϭ d й Ͳϭϱ й й Ϯϭй ϱϳ ϱϱ ϱϲ ϱϲ ϱθ ϱϱ ϲϭ d y Z d Ͳϭϱ ϯϯй Ϯϴй ϯ Ϯϴ Ϯϴ ϯϯ ϯϯ ϯϭ Ϯ Ϯϴ Ϯϳ Ϯ <>K' Ͳϭϱ ϭ ϯ ϭ ϯ ϭ ϲ ϭ ϳ ϭ ϳ ϭ ϴ Ϯ Ϭ Ϯ ϭ Ϯ ϱ Z Θ ϭϯ ϭ < s > ϯ ϯϯdž Ζϭϱ ϱ Ϭ ϳ ϳ ϳ Ͳϭ /s hz ϭ ϬϬ Ϭ ϴйͿ /s 'Z Zdнϭй ϭͿ ϴϯ ϴϭ ϳ ϳϲ ϳϳ ϳϳ ϳϲ ϳϭ ϴ d Ϭ ϰϰ ϱ ϬϬͿ >W, Ϭ Ϭϱ ͲϬ ϬϰͿ Ϯϯ ϱθ ϱϯ ϲϯ ϳϲ ϳϴ ϱϳ DW>Kz ^ ϯϳϲ йͿ FilmArray Source: Corporate Website Ϭ ϯ Ϭ Ϭ *UHDW DQQXDO (36 HVWLPDWHV Ϯ Ϭ Ϭ *DSV XS RQ [ WKH DYHUDJH GDLO\ YROXPH BioMérieux is a pure play in the area of in vitro diagnostics (IVD) with global leadership in microbiology (~40% market share). Continuous uptake and expanded usage of FilmArray should boost growth. Company Overview BioMérieux provides diagnostic solutions (instruments, reagents, and software) that determine the source of disease and contamination. The Company is the global leader in microbiology in both infectious disease diagnostics and industrial quality control (44% of sales). Recently, the Company forayed into high-margin molecular biology (17% of revenue) through its FilmArray line of products. Q revenues by application: clinical, 80%; industrial, 19%; other, 1%. Q revenues by region: EMEA, 38%; North America, 36%; APAC, 19%; Latin America, 7%. O Neil Methodology Post its Q business review, the stock gapped down and pulled back to its 50-DMA. It is encountering resistance at 72. The stock s RS line is near all-time highs with a strong RS Rating of 82. Double-digit earnings growth in recent quarters has led to a decent fundamental profile, including an EPS Rank of 75. Consensus estimates call for 22% and 17% EPS growth in 2017 and 2018, respectively. In Q3 2017, sales increased 5.7% y/y to 540M, led by revenue growth of 6.1% and 23.1%, y/y, respectively, in the microbiology and molecular biology segments. Growth Drivers Growth in the molecular biology segment was driven by robust demand for Biofire FilmArray menu panels. FilmArray has become the critical growth driver for BioMerieux, with 32% y/y revenue growth to 74M in Q Local Code: FR:BIM Bloomberg Symbol: BIM:FP ISIN: FR Ϭ ϭ ϭ 6WRFN LQ YHU\ KLJK GHPDQG ϲ ϱ ϳϭ ϱ ϰ ϴ ϳ ϭϰ ϲ ϯϱ ϭ hz н ϭϯϭ нθ ϲ ϭ ϰ ϳϲ Ϭ ϰ Ϯ ϯ ϴϭ ϯ ϯϯ ϴ Ͳ Ϯ ϴϲ Ϯ Ϯ Ϯ ϰϲ 5 6 OLQH DW QHZ KLJK Ϯ ϬϬ ϭ ϴϭ ϭ ϲϯ ϭ ϰϯ ϭ ϭ ϭϰ ϭ Ϭϱ Ϭ ϱ ϮϬ Ϭ ϴϲ ϭθ,qfuhdvlqj VSRQVRUVKLS Ϭ ϳϲ ϭϲ ϰϭϭ< ϮϬϬ< ϭθϲ Ϯ< нϭϯ < ϭϭ :ƵŶ ϭϭ &/E E / >^ W^ hzͿ ϭ ϴϴ ^ĞƉ ϭϭ ĞĐ ϭϭ Ϯ DĂƌ ϭϯ Ͳϰй :ƵŶ ϭϯ Ϯ Ϭϭ нϯй W^ й, E' ϲϳϯ ϰ ^ > ^ D/> hzͿ н ϳϱϯ ϴ ϳ ϰ нϰй Ͳϰ ϭй W^ й ^hzwz/^ н н нϭϭй нϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ϭ ϰϭ DĂƌ :ƵŶ Ϯ ϬϮ ^ĞƉ ĞĐ Ϯ ϭϱ ϭ ϯϯ Ϯ Ϭ ϭ ϱϭ ϭ Ϯ Ϯ ϬϲĞ нϱϰй Ͳй Ͳϯй н Ͳй нϯğ ϴ ϰ ϳϱϰ Ϯ ϴϯϯ ϴ ϳ ϳ ϰ ϯϯ Ϯ ϭ Ϭϯϭ ϰ ϳ ϱğ н Ͳϴ ϴй нϭй нθ ϰй нϯй нϰй нϭ нϯ нϭϯй Ͳϰϰ нğ ϯϭϱ ϳ ϮϯϮ Ϯϭϱ ϳ Ϯ ϭθθ ϭθϲ Ϯϭϭ Ϯϭϲ ϮϬϯ ϲ Ϯ ϭθϱ ϯ ϮϬϴ ϮϬϭ ϯ ϱ &he ^ ϰθϯ ϯ ϱ Ϭϯ ϯ ϰθϯ ϳϴϴ ϯ ϲϯϯ ϯϲ ϯ ϳ ϲ ϰ Ϯ Ϭϴϲ ϰ Ϯ ϭϰϭ ϰ ϳ Ϯ ϰ ϰ ϯϭ ϰ ϱ ϭ ϰ ϰθϯ ϳϰϱ ϰ ϳϳϲ ϯϯϳ ϱ ϭ ϱϯϳ ϱ ϭϲϳ ϳϰϳ ϱ ϰθθ ϴ ϱ ϯ ϭϱ ϱ ϰϭϱ Ϯϴϭ ϱ ϯϯϯ ϰϳϳ ϱ Ϭϴϱ ϳϳϴ ϰ ϴ ^, Z ^, > z &he ^ Ϯϱϴ Π ϮϬϭϲ t/>>/ D KΖE /> н K /E Ͳй ^ĞƉ ϰϱ ϮϬϭϲ Ɛƚ ϱͳljƌ,ŝőś ϰϭ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ ϰdž ϲ ϲ ŝžŵğƌŝğƶdž /D &ZͿ tğğŭůlj ĂƐ ŽĨ tğě ƵŐƵƐƚ ϯϭ ϮϬϭϲ Ĩ tğě ƵŐƵƐƚ ϯϭ ϮϬϭϲ U.S. FDA and CE approvals for enhanced versions and expanding global penetration of FilmArray (13% contribution from outside U.S.) should increase its installed base. Nearly 30% of new systems installations were carried out outside of the U.S. over the quarter. In July 2016, BioMérieux received FDA clearance for the expanded use of its Vidas BRAHMS PCT assay for managing sepsis patients with an elevated risk of mortality. In the nine months ended September 30, sales of Vidas were up 4% y/y, with APAC displaying robust growth. Sepsis, the body s severe inflammatory response to an infection, is the cause of more than 1.6M hospital visits annually in the U.S. and is the most common cause of death in the ICU. As of June 2017, with an installed base of 89,400 instruments (including 4,800 FilmArray units), recurring revenue (reagents and services accounting for ~85% of revenue) ensures visibility. Looking Forward The Company reiterated organic sales growth of 9-10% (8-9% previously) in It also aims for operating income before non-recurring items of 330M 345M (from 300M-315M) in Next catalyst: BioMérieux is expected to announce its Q4 business review on January 17,

67 FRANCE ŝžŵğƌŝğƶdž /D &Z W^ dž ϴ ϰϲ ϳ ϯϭ ϲ ϱϰ ϱ ϳϳ ϱ ϬϬ ϰ ϲϯ ϰ Ϯϯ ϯ ϴϱ ϯ ϰϲ W Z/^Ͳ^ & džđś &ZϬϬϴϲ нϯϯ ϰ ϳϴ ϴϳ ϮϬ ϬϬ W^ ZĂŶŬ ϳ DĞĚŝĐĂůͲWƌŽĚƵĐƚƐ ďŝžŵğƌŝğƶdž Ĩƌ DŬƚ ĂƉ Φϴ ϰϰ ^ĂůĞƐ ΦϮ &Z E /ŶĐ ϴϴ Biomerieux ^ŚĂƌĞƐ ϭϭθd &ůžăƚ ϰϯd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳϭϭй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 /KD Z/ hy ^ /^ &Z E Ͳ ^ KDW Ez d, d ^W / >/ ^ /E d, &/ > K& /EͲs/dZK / 'EK^d/ ^ &KZ D / > E /E h^dz/ > WW>/ d/ke^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ ϭ Ϯϱ ϭ ϭ ϭ ϭϰ ϭ ϯ ϭ ϭϰ Ϭ ϯ ϭ ϱϯ W^ hz ϭ ϴ йź Ϯ ϭϱ ź ^, &>Kt ^,Z hz ϭ ϳϭ ϭ ϳ Ϯ Ϭϭ ϭ ϱθ ϭ ϱϯ ϭ ϲ ϭ ϳϳ Ϯ Ϯ ϰϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭθй ϭθй ϭ ϭ ϭϭй ϭϯй Ͳ ϭϯй ^ƚăďŝůŝƚljͿ ϭϭй Ϯ Ϯ ϭθй ϭ ϭϯй ϭ ϴй ϭϯй Ͳ Ϯй ϭϰ ^ƚăďŝůŝƚljͿ ϰй ϭ ϭϭй ϭ ϭй ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϭϭϭ ϭ ϯ ϭ ϯϱϳ ϭ ϳ ϭ ϱ ϭ ϱθθ ϭ ϲθ ϭ ϲϱ Ϯ ϯ /Es d K Ϯ ϯdž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й й Ϯϭй Ϯϯй ϳϭ ϳϭ ϳϭ ϳϮ ϳϮ ϳϭ ϳϭ ϳϭ ϲ d y Z d Ϯϴй ϯ ϯϭй ϭ ϭθϳ ϭθθ ϭθϯ ϭ ϭθϭ ϴ ϭ ϭθϭ <>K' Ϯ ϯ Ϯ Ϯ Ϯ ϭ Ϯ ϱ Ϯ ϳ Ϯ Ϯ ϲ Ϯ ϲ Ϯ Ϯ Z Θ ϭϯ < s > ϱ ϯϳdž Ζϭϲ Ϯ Ϯ Ϯ ͲϭϮ ͲϮϴ Ͳϯϭ /s hz Ϭ ϯϯ Ϭ Ϳ /s 'Z Zdнϭй ϭͿ ϴ ϴϴ ϴϴ ϴϴ ϴϴ ϴϴ ϴϲ ϴϱ ϳϴ d ϭ Ϭϯ Ϯϯ ϬϬͿ >W, Ϭ Ϭ ϬϴͿ ϲϲ ϱϰ ϰϱ ϲϯ ϲθ ϱ ϱθ ϮϬϭϲ DW>Kz ^ ϲ Ϳ Ϭ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ ϯ Ϭϴ Ϯ ϲ ϳϭ hz Ͳϰ Ͳϲ ϭθй Ϯ ϯϭ ϭ Ϯ ϭ ϳϳ ϭ ϲϱ ϭ ϲϯ ϰϲ ϭ ϰϲ ϭ ϯϭ ϳϴ ϭ ϭϱ ϭ ϬϬ Ϭ Ϯ Ϭ ϴϱ Ϭ ϳϯ Ϭ ϲϱ Ϭ ϱθ ϭϱ Ϭ Ϭ ϰϲ Ϭ ϭϯ ϭϭ Ϭ Ϭ ϯϱ Ϭ ϯϭ ϴ Ϭ< ϭ ϳ< ϰϭϭ< Ͳϯϭй ϮϬϬ< ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ ϰϳ W^ hzͿ W^ й, E' Ͳй ϴ ϰ ^ > ^ D/> hzͿ н Ͳϴ ϴй W^ й ^hzwz/^ ϭθϯ ϭ &he ^ ϱϰθ ϰθϭ D D ^, Z ^, > z &he ^ :ƵŶ Ϭ ϲϳ ϳϱϰ Ϯ нϭй нθ ϰй ϮϬϰ D ^ĞƉ ϮϬ D ĞĐ Ϭ ϳϮ нϱϯй ϴϯϯ ϴ нϯй ͲϬ ϳ ϭϰd ϭϲ ϭϱd Ϭ ϰϰ Ͳй ϳ ϳ нϰй нϭ Ϯй ϭϲϲ ϭϱd ϭϲd Ϭ Ͳϯй ϰ нϭ ϭθϳ ϭϲd ϮϬϯ ϭϲd Ϭ н ϯϯ Ϯ нϯ Ͳϳϯ Ϯй ϲ ϭϲd Ϯϭϱ ϭϱd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϰϯ Ͳϯ ϭ Ϭϯϭ ϰ нϭϯй Ͳϴϭ Ϯ ϭϱd Ϯϯϳ D Ϭ ϳϮ нϰϰй ϭ ϬϬϬ ϴ н Ͳϲϰ ϴ D ^ĞƉ ϭϲ Ϯϴ D ĞĐ ϭϲ Ϭ ϳ нθϰй ϭ Ϯ ϯ н ͲϲϮ Ϯ D DĂƌ ϯϭϯ ϮϬD :ƵŶ Ϭ ϴϱ нϭθй ϭ ϭ ϰ нй Ͳϲϱ ϰй ϰ ϮϬD ^ĞƉ ĞĐ ϭ ϬĞ нйğ ϭ ϭϱϰ ϬĞ нğ ϰϭ ϮϬ Ɛƚ ϯϳ ϮϬϭϴ Ɛƚ ϯϯ ϭϱ ϱͳljƌ,ŝőś ϰϭ Ϭ ϱͳljƌ >Žǁ Ϭ ϰϳϳ ϲ ϴϳϭ ǀƐ /ŶĚ ǀŐ ŝžŵğƌŝğƶdž /D &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -65- Health Care: Medical-Products

68 Recordati Indua.Chimica ITALY Excellent EPS Rank Source: Corporate Website Recordati is well positioned to boost its growth momentum from a solid marketing platform in Europe, geographic expansion, and acquisitions. Company Overview Recordati markets proprietary and licensed novel drugs in Europe, Russia, Turkey, North Africa, the U.S., Mexico, and some South American countries. In the U.S., the Company only markets drugs for rare diseases. Revenue by region for Q3 2017: international, 82%; Italy, 18%. O Neil Methodology The stock is slightly extended from an ideal entry point. We recommend adding to shares as it pulls back to support along its 50-DMA. The stock s technical profile remains strong, with a rising RS line, an RS Rating of 74, an A/D Rating of B, and Up/ Down volume ratio of 1.8. Recordati reported consistent double-digit EPS growth over the past several quarters, generating a strong EPS Rank of 91. EPS growth consensus estimates have been revised upward to 23% and 8% in 2017 and 2018, respectively. Aided by increasing high-margin drugs, ROE accelerated the trailing three years. In Q3 2017, revenues grew 14% y/y to 313M, driven by a 17% y/y growth in international sales. EPS increased 21% y/y to Growth Drivers Recordati s deal with AstraZeneca (AZN) for Seloken should enable it to enter several European markets, such as Benelux and the Nordics. Seloken complements Recordati s cardiovascular drug Zanidip, which has already lost patent protection. With its established marketing infrastructure, Recordati aims to maintain Seloken s current annual sales of 100M. Seloken s high margin of 40-50% bodes well for the Company. A/D and RS Ratings improving over the last four weeks 10-week MA 40-week MA Good estimates revised higher Strong earnings growth with very low stability factor (1 best) Minimum OH supply RS line trending higher and excellent A/D Rating Increasing institutional ownership Recordati aims to launch its schizophrenia drug Reagila in 2018, with sales estimated to peak at 100M in Fortacinis will be launched in 2018, with peak sales of 20M 30M. Rare disease drugs Graspa and Carbaglu are in the advanced development stage. Recordati expects revenue of 250M from rare diseases, mainly driven by Cystadrops. Orphan drugs should be driven by further expansion in Japan, Australia, and APAC. In July, the Company launched in the U.S. a new dosage strength of its Panhematin injection for recurrent attacks of acute intermittent porphyria. Looking Forward Recordati expects Zanidip revenues of 160M 165M by Urorec, which has launched in 34 countries, should post revenues of more than 100M in Management reiterated full-year guidance: Revenue of 1.29M 1.30M, EBITDA of 450M 460M, net income of 290M 295M. Next Catalyst: The Company s 2017 preliminary results are expected on January 30, Local Code: IT:REC Bloomberg Symbol: REC:IM ISIN: IT

69 ITALY ZĞĐŽƌĚĂƟ /ŶĚƵĂ ŚŝŵŝĐĂ Z /d W^ Ϯϭ dž ϯ ϴϭ ϯ ϯϯ Ϯ ϴϲ Ϯ Ϯ Ϯ ϬϬ ϭ ϴϭ ϭ ϲϯ ϭ ϰϯ ϭ ϯϯ ϭ ϭ ϭϰ ϭ Ϭϱ нϯ ϬϮ ϰθϳθϳϭ W^ ZĂŶŬ ϴ D/> E džđś /dϭϭϭϯθϯϳϭ ƌğđžƌěăɵ ĐŽŵ DĞĚŝĐĂůͲ ŝǀğƌɛŝįğě Recordati Indua.Chimica DŬƚ ĂƉ Φϳ ^ĂůĞƐ Φϭ DŝůĂŶŽ /d >z ^ŚĂƌĞƐ ϮϬD &ůžăƚ ϮD W^ ƵĞ ŝŷ ϲ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Z KZ d/ ^W Z KZ d/ /E h^dz/,/d/ & ZD hd/ ^W /^ E /d >zͳ ^ 'ZKhW E' ' /E d, Z ^ Z, s >KWD Ed D Eh& dhz E D Z< d/e' K& W, ZD hd/ >^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϱϭ Ϭ ϱϲ Ϭ ϱϱ Ϭ ϱθ Ϭ ϱ Ϭ ϲϲ Ϭ ϳ Ϭ ϳ ϭ ϭϱ W^ hz ϭ Ϯϯй ϭ ϱϱ ź ^, &>Kt ^,Z hz Ϭ ϳϭ Ϭ Ϭ ϲϯ Ϭ ϲ Ϭ ϳϯ Ϭ ϴϲ Ϭ ϰ ϭ ϭ ϯϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯϭй Ϯ й й й й й Ϯ Ϯϴй Ͳ Ϯ ϭ ^ƚăďŝůŝƚljͿ й Ϯϯй Ϯ Ϯ й Ϯ й й Ϯ Ͳ й ϯ ^ƚăďŝůŝƚljͿ ϴй ϭϯй Ͳ й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϲ ϳϰϴ ϲϱ ϳ ϴϮϴ ϴϳ ϭ Ϭϰϴ ϭ ϭϱϰ /Es d K Ϯ ϭdž Ϯ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϯ ϯϯй ϯϯй ϲϳ ϲϲ ϲϲ ϲϲ ϲϳ ϲϰ ϲϱ ϲϱ ϲϭ d y Z d Ϯ Ϯ Ϯ ϯϱ ϯ ϯϲϰ ϯ ϳ ϯϭθ ϯ ϳ ϯ <>K' ϭ ϱ ϭ ϭ ϭ Ϭ ϭ Ϭ ϭ Ϭ Ϭ Ϭ Ϭ Ϭ ϳ Z Θ ϳ ϯ < s > ϳ ϳϭdž Ζϭϲ Ϯϯ Ͳϳ Ͳϭϴ Ͳϭϴ ͲϮ Ϯ Ͳϯ Ͳϱ Ͳϯϳ /s hz Ϭ ϯϳ Ϯ ϭйͿ /s 'Z Zdнй ϴͿ ϲϳ ϱϲ ϱθ ϲϭ ϲϱ ϲϭ ϲϭ ϱθ ϱϯ d Ϭ ϰϰ ϭϭ ϬϬͿ >W, Ϭ Ϭϲ Ϭ ϬϲͿ ϴϯ ϴϴ ϴϱ ϴϰ ϴϭ ϴϯ ϴ ϮϬϭϲ DW>Kz ^ ϰ ϭϭϲ Ϳ ϰϲ ϯϱ Ϯϴ hz Ͳϯ ϭϯ Ͳϴ й Ϭ ϱϯ Ϭ ϴϭ Ϭ ϳϭ ϭϱ Ϭ ϲϯ Ϭ ϱϳ Ϭ ϱϯ ϭϯ ϭϭ Ϭ ϰθ Ϭ ϰϯ Ϭ ϴ Ϭ ϯϯ ϳ Ϭ Ϯ ϲ Ϭ Ϭ ϱ ϰ ϲ Ϭ ϮϬ ϰ Ϯ Ϭ ϭθ ϯ ϴ Ϭ ϭϲ ϯ ϰ Ϭ ϭϰ ϯ Ϭ ϭϯ Ϯ ϲ ϮD Ϯ ϭd нϰ Ϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ Ϭ W^ hzͿ нθй нϭϯй W^ й, E' ϮϬϴ Ϭ ϰ ϲ ^ > ^ D/> hzͿ нϭθй н Ͳϳ W^ й ^hzwz/^ ϭθθ &he ^ ϭθϰ ϯϯ ϯ ϯϯd ^, Z ^, > z &he ^ :ƵŶ Ϭ ϭϲ н Ϯϯϯ Ϯ нй ^ĞƉ Ϭ ϭϱ Ϯ ϯ н ĞĐ Ϭ ϭϲ нϯϯй Ϯϯ ϲ нϭ Ϭ Ϯϭ нϭϭй Ϯ ϰ н Ϭ ϮϬ нϯ ϳ ϯ н Ϭ ϮϬ нϯϯй Ϯ ϱ н Ϭ ϭθ нϭϯй ϱ ϯ нϯй Ϭ Ϯϱ нй Ϯϳϱ ϳ н ϭ ϯϯd ϭθϱ ϯϯd ϮϬϬ D Ϭ ϯϱd ϳ D ϭ ϯd Ϯϳ D Ϯϲ ϰϭd Ϭ Ϯϱ нϯ ϯ ϯ н нϲ ϯ D Ϭ нϯ ϱ ϰ н Ͳϯ Ϯй ϯϳϳ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϯϯ нϯθй ϯ Ϯ н Ͳϯ ϯϳ ϰϭd Ϭ ϯϯ нϯθй Ϯ Ϯ нϭ н ϴй ϰ ϰϭd Ϭ Ϯϴ нϭϯй Ϯϴϱ ϲ нθй Ͳϳ ϰй ϰϯ ϰϯd ^ĞƉ ϭϲ Ϭ Ϯ нϯϭй Ϯϳϰ ϱ нϭϯй нϭϯ Ϯй ϱϯθ D ĞĐ ϭϲ Ϭ Ϯϳ нϭ Ϯϭ ϲ нϭϭй Ͳϰ ϱϯϲ ϰϯd DĂƌ Ϭ нй ϭ нй н ϯй ϱ ϰϭd :ƵŶ Ϭ ϯϯ нϭθй ϴ нθй ͲϮ Ϭ ϰϭd ^ĞƉ Ϭ ϯϱ нϯϭй ϯ Ϭ н нϱ ϴ ϰϭd ĞĐ Ϭ ϯϱğ нϯğ ϯϯϲ ϱğ нϭğ DĂƌ ϭθ Ϭ Ğ нϭϭйğ ϯ ϰğ нϭϭйğ ϯϯ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ Ϯϭ ϱͳljƌ,ŝőś ϯϭ Ϭ ϱͳljƌ >Žǁ ϭϭ Ϭ ϴϱϴ ϯd ǀƐ /ŶĚ ǀŐ ϭ Ϯdž ZĞĐŽƌĚĂƟ /ŶĚƵĂ ŚŝŵŝĐĂ Z /dͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -67- Health Care: Medical-Diversified

70 Eurofins Scientific FRANCE ƵƌŽĮŶƐ ^ĐŝĞŶƟĮĐ h& &Z W^ dž ϭϱ ϴϯ ϭϰ ϭϯ ϴϯ ϬϬ ϴ ϰθ ϳ Ϯ ϳ Ϭϴ Source: Corporate Website Eurofins Scientific (EUF.FR) is an acquisition-driven growth company, specializing in bio-pharmaceutical product testing services. It is well-positioned to reach a 4B revenue target by Company Overview Eurofins is one of the leading global independent market players in analytical testing and laboratory services in food, environment, pharmaceuticals, and clinical areas. H revenue by geography: North America, 31.9%; France, 23.5%; Germany, 10.6%; Benelux, 7.0%; Nordic countries, 6.9%; the U.K. & Ireland, 4.9%; others, 15.1%. O Neil Methodology Its three-year average revenue and earnings growth rates are 57% and 26%, respectively. Its fundamental profile remains strong. The stock has an EPS Rank of 87, increasing cash flow per share, rising pretax margins, and ROE above 25%. In Q3 2017, revenues came in at 731M (+16.2% y/y), bringing revenues for 9M 2017 to 2,128M (+15.8% y/y). (Organic growth: Q % y/y accelerating over three quarters; 9M % y/y). North America contributed ~30% of total revenues (+12.9% y/y). Growth Drivers Eurofins has signed/closed more than 40 acquisitions YTD for total annualized revenue of 600M, substantially exceeding its annual M&A revenue objective of 200M. Amongst its major acquisitions in 2017, Villapharma (Spain) and DiscoverX (U.S. & U.K.) have strengthened its global leadership in innovative drug discovery products and services; while the Genoma and LifeCodexx acquisitions brought unique innovative services to Eurofins global clinical genetic laboratories network. In December 2017, Eurofins acquired Pasteur Group, a leading player in clinical diagnostics in Santos, Sao Paulo. Pasteur expects to generate revenues of more than BRL 25M in The acquisition provides an entry for Eurofins in the growing clinical diagnostics market, with organic and inorganic growth potential. Local Code: FR:ERF Bloomberg Symbol: ERF:FP ISIN: FR ϲ Ϯϱ ϱ ϱ ϬϬ ϰ ϱθ W Z/^Ͳ^ & džđś &ZϬϬϬϬϬϮϱ ǁǁǁ ĞƵƌŽĮŶƐ ĐŽŵ W^ ZĂŶŬ ϴϲ DĞĚŝĐĂůͲZĞƐĞĂƌĐŚ ƋƉ ^ǀĐ DŬƚ ĂƉ Φϯ ϳϳ ^ĂůĞƐ Φϭ ϰϭ EĂŶƚĞƐ &Z E ^ŚĂƌĞƐ ϭϱd &ůžăƚ ϭϱd 2+ D'Dd ŽǁŶƐ 0LQLPDO RYHUKHDG VXSSO\ hzk&/e^ ^ / Ed/&/ ^ &Z E, Z E,Ϳ /^ &Z E Ͳ ^ KDW Ez d, d WZKs/ ^ /KͲ E >zd/ > d ^d/e' ^ Zs/ ^ d, KDW Ez ^W / >/ ^ /E d, WZKs/^/KE K& d ^d/e' E ^hwwkzd ^ Zs/ ^ dk d, W, ZD hd/ > &KK E Es/ZKED Ed > ^ dkz^ /d K&& Z^ WKZd&K>/K K& E >zd/ > D d,k ^ &KZ WZKs/E' d, ^ & dz / Ed/dz WhZ/dz hd, Ed/ /dz E KZ/'/E K& WZK h d^ E /K>K'/ > ^h ^d E ^ hzk&/e^ ^ / Ed/&/ ^ KW Z d ^ ^ s Z > ^h ^/ / Z/ ^ /E >h /E' hzk&/e^ &KK, D/^dZz d ^d/e' &Z E >hy,k> /E' ^ Z> hzk&/e^ E >z^ ^ WKhZ >Ζ Es/ZKEE D Ed &Z E >hy,k> /E' ^ Z> DKE' Kd, Z^ /d^ D /E ^, Z,K> Z /^ E >zd/ > /Ks EdhZ ^ ^ /d, ^ KW Z d/ke^ /E >'/hd >hy D KhZ' E d, he/d </E' KD DKE' Kd, Z^ d, KDW Ez, ^ ^h, ^h ^/ / Z/ ^ ^ KD ' D > KZ dkz/ s s/z KZͲ/ d > KZ dkz/ ^ /E E K^dKE, Zd / 'EK^d/ ^ KZWKZ d/ke EEh > Ͳ E ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ ƐƟŵĂƚĞ ϮϬϭϲ ƐƟŵĂƚĞ ϭ Ϯϳ ϭ Ϯϳ ϭ ͲϬ ϳ ϭ ϲϱ ϯ ϴϳ ϲ ϰϰ ϳ ϴ ϰθ W^ Φ ϭÿ ϳ ͲŸ ^, &>Kt ^,Z Φ Ϯ ϳϭ Ϯ ϱθ ϯ ϱϲ ϯ ϴϱ ϰ ϱϯ ϲ ϳϳ ϴ Ϭϯ ϭϭ Ϭϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϰй ϭϭй ϭϭй ϭϭй Ͳϭϰ 6WDELOLW\ Ϯ ϭ ϭ Ͳϭϭй Ϯϭй й й ϭ Ͳϭϰ 6WDELOLW\ ϱθй ϯ Ϯ ϭй й ϭ ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ Φ /Es d K Ϳ ϯϲθ ϰϳ ϲϯϯ ϲϰϭ ϲ ϴϮ ϭ Ϭϰϰ ϭ ϲ ϭ ϰ dž ϳϱ Ͳ:ĂŶ ϭϲͳ:ăŷ ϮϯͲ:ĂŶ Ͳ:ĂŶ ϲͳ&ğď Ͳ&Ğď ϮϬͲ&Ğď ϮϳͲ&Ğď ϱͳdăƌ d й Ͳϭϰ ϯй Ϯй Ͳϭϰ ϭθй ϭ Ϯ ϲϯ ϲϳ ϲϯ ϲϯ ϲϳ ϲϯ ϲϯ d y Z d Ͳϭϰ ϭθ ϭθ ϭθ ϭθ ϭθ ϭϲ <>K' < s > ϱ ϳdž Ζϭϰ ϭ ϲ Ϯ Ϭ Ϯ Ϭ ϭ Ϯ ϯ ϭ ϭ ϴ Ϯ ϭ ϭ ϴ Z Θ ϭ ϯϯ Ϭ Ϳ /s 'Z Zdнϴϯй ϰϲͿ ϭθ ϯϲ Ϯϭ Ϯϭ Ϯϯ Ϯϳ /s Φ ϳϯ ϴϭ ϳϴ ϳϰ ϳϴ ϳϰ ϳϱ ϴϭ d Ϭ ϴϰ ϲϲ ϬϬͿ >W, ͲϬ Ϭϭ Ϭ ϬϬͿ ϰϲ Ϯϱ ϰϰ ϱϯ Ϯϴ Ϭ ϯ Ϭ Ϭ %UHDNV RXW RQ [ WKH DYHUDJH GDLO\ YROXPH Ϯ Ϯ ϬϬ Ϭ Ϭ нϳ ϱϱ ϭ ϭ ϭ ϭϯϭ ϭ ϴϭ ϭ нн *UHDW JURZWK UDWHV ϯ ϳϱ hz нϯ ϭϭй Ϭ +LJK 8 ' YROXPH ϰ ϰ Ϭ ϯ ϯϯ Ϯ Ϯ Ϯ Ϯ Ϭϴ ϭ Ϯ ϰϲ ϭ ϳϱ ϭ ϱθ ϭ ϭ Ϯϱ ϭ Ϭϴ ϭ ϬϬ Ϭ Ϯ Ϭ ϴϯ ϮϬ Ϭ ϳϱ ϭθ Ϭ ϲϳ ϭϲ >K' 6ROLG (36 DQG UHYHQXH JURZWK sk>hd Ϭ< ϮϬϬ< ϭ ϰ< < нϯй < Ξ :,//,$0 2 1(,/ &2,1& Ϭ D Z &/E E / >^ ͲϬ ϱ ͲϬ Ϯϭ W^ ΦͿ ϯй W^ й, E' :he Ϭ ϰϰ нϭ<й ^ W Ϭ ϳ нϯй Ϭ ϲϯ нϭϲ Ϯ Ϭ ϭϰ ϭ ^ > ^ D/> ΦͿ Ͳ нϭй ϭϲ ϰ ϱ ϰ ϭθϲ ϰ ϯ ϭ нθй нθй нθй нϯ Ͳ Ϯй W^ й ^hzwz/^ ϲ ϴϴ Ϯ Ϯ &he ^ ϰ Ϯϭϱ ϯ ϱϱϱ ϯ ϳϱϭ ϱθϭ ϯ ϴϯϲ ϯϲϭ ^, Z ^, > z &he ^ D Z ϭϭ :he ϭϭ ^ W ϭϭ ϭϭ ϯ ϬϮ нϯϳ D Z ϭϯ :he ϭϯ ^ W ϭϯ ϭϯ ϲ ϰϰ ϭ Ϭϰϰ Ϭ D Z :he ϯ Ϭϱ ϱ ϲ ^ W ϰ ϳϲ ϲϱϱ ϯ D Z ϭϰ :he ϭϰ ϯ Ϯϱ н ^ W ϭϰ ϭϰ ϱ нϭ ϯϯ ϱ ϳϲϲ Ϯ Ͳϰ нϭ D Z ϭϱ W Ϯ Ɛƚ ϯϭ ϱͳljƌ,ŝőś ϱϳϯ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ Ϭ dž ϴϱ ϯ Ϯϴϲ ϭϱϭ Π t/>>/ D KΖE /> н K /E Ϭ ϭ ϰd ϯ ϴ ϲ ϭϭθ ϭ ϭϲϭ ϳ Ϯϯϲ ϰ Ϯ Ϯϳ Ϯϯ Ϯϭ ϴ ϯϯϯ ϭ ϰ ϬϬϲ ϯϯ ϯ ϰ ϭϰ ϯ Ϯϲ Ϭϯ ϯ ϴϭϲ ϴϳϰ ϰ Ϯϴϴ ϲϱ ϰ ϱ ϰϭθ ϰ ϰ ϴϰϳ ϰ ϯϭθ ϱ ϰ ϰϲϲ ϳ ϰ ϴϴϲ ϭ ϰ ϳϭ ϱ ϱ Ϭϴ ϱϯϱ ϱ ϭθϳ ϰϱϰ ϱ ϭ Ϭϲϭ ƵƌŽĮŶƐ ^ĐŝĞŶƟĮĐ h& &ZͿ tğğŭůlj ĂƐ ŽĨ d,h Ϭϱ DĂƌĐŚ Ĩ d,h Ϭϱ DĂƌĐŚ In December 2017, Eurofins closed the acquisition of EAG Laboratories, a leading global scientific services company with an EBITDA margin of ~30%. It is expected to generate revenues of more than $220M in On July 26, 2017, it agreed to acquire Advinus Therapeutics (India), a leading preclinical and clinical phase contract research company. Advinus is a leader in early phase development with a track record of 50 investigational new drug (IND) applications accepted worldwide. The acquisition will help the Company expand in diverse industries such as biotech, pharmaceuticals, biologics, agrochemicals, nutraceuticals, and cosmetics. The Company acquired Amatsigroup (France), one of the largest independent multi-specialist biopharma product development service platforms in Europe, on July 10, It is well-positioned to leverage and strengthen its position in the CDMO industry. Looking Forward Management expects year-end revenue close to 3.35B, which is more than its earlier guidance of 2.9B and ~13% above consensus of 2.48B. Also, the Company stated that they are bringing forward their 4B revenue target by one year to Next Catalyst: Eurofins would publish FY 2017 results on March 5,

71 FRANCE ƵƌŽĮŶƐ ^ĐŝĞŶƟĮĐ h& &Z W^ Ϯϳ dž ϰθ ϭϱ ϰϰ ϰϰ ϰϭ ϳϰ ϯϳ Ϭϰ ϯϯ ϯϯ Ϯ ϲϯ Ϯϱ ϯ ϭθ ϱϯ Ϭϰ W Z/^Ͳ^ & džđś &ZϬϬϬϬϬϮϱ ĞƵƌŽĮŶƐ ĐŽŵ W^ ZĂŶŬ ϴϴ DĞĚŝĐĂůͲZĞƐĞĂƌĐŚ ƋƉ ^ǀĐ Eurofins Scientific DŬƚ ĂƉ Φϴ ϴ ^ĂůĞƐ Φϰ ϱϲ EĂŶƚĞƐ &Z E ^ŚĂƌĞƐ ϭθd &ůžăƚ D W^ ƵĞ ŝŷ ϯϯ ĂLJƐ ĞͿ K, Ͳϭ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ϭϯϭϭ ϭϭ hzk&/e^ ^ / Ed/&/ ^ /^ >hy D KhZ'Ͳ ^ KDW Ez E' ' /E d, h^/e ^^ ^hwwkzd ^ Zs/ ^ /E h^dzz d, KDW Ez :K/E^ W Zd K& /Ed ZE d/ke > 'ZKhW K& > KZ dkz/ ^ WZKs/ /E' Z E' K& E >zd/ > d ^d/e' ^ Zs/ ^ dk d, W, ZD hd/ > &KK Es/ZKED Ed > E KE^hD Z WZK h d^ /E h^dz/ ^ E dk 'Ks ZED Ed^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ ͲϬ ϳ ϭ ϲϱ ϱ Ϯϳ ϲ ϰϰ ϳ ϴ ϰθ ϳϰ ϭϰ Ϭϭ W^ hz ϭϯ ͲϭϮйź ϭϱ ϳϭ Ϯϴйź ^, &>Kt ^,Z hz ϯ ϱϲ ϯ ϴϱ ϰ ϱϯ ϲ ϳϳ ϴ Ϭϯ ϭϭ Ϭϯ ϱϯ ϮϬ ϰϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰй ϭϭй ϭϭй ϭϭй ϭϭй ϭϯй ϭϯй Ͳ й ϰ ^ƚăďŝůŝƚljͿ ϱ ϭ Ͳϭϭй Ϯϭй й й ϯϯй Ϯ Ϯ Ϯ Ͳ ϭθй ϴ ^ƚăďŝůŝƚljͿ й Ϯ ϭй й й ϭ ϭ й ϯ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϲϯϯ ϲϰϭ ϲ ϴϮ ϭ Ϭϰϰ ϭ ϲ ϭ ϰ ϭ Ϯ ϱϯϳ /Es d K ϱϯ ϭdž ϳϲ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϯй ϱθ ϭθ ϱ ϱ ϲϭ ϱϱ ϲϯ ϲϭ d y Z d Ϯ й й ϭθ ϭθ ϭθ ϭθ ϭθ ϭθ <>K' ϭ Ϭ Ϭ Ϭ Ϭ ϭ Ϯ ϭ Ϭ ϭ ϯ ϭ ϯ ϭ Ϯ Z Θ < s > ϴ dž Ζϭϲ ϯ Ϯ Ͳϭ ϮϬ ϯϯ ϲ /s hz Ϯ ϬϬ Ϭ ϰйͿ /s 'Z Zdнϭ ϳͿ ϳϯ ϳϭ ϲϯ ϲϱ ϱ ϲ ϲϯ ϱϳ d Ϭ ϳϴ ϬϬͿ >W, Ϭ Ϭϰ Ϭ ϬϰͿ ϳ ϳ ϭ ϰ ϭϭϯ ϱ ϱ ϱ ϮϬϭϲ DW>Kz ^ Ϯϳ Ϯϭ ϮϭйͿ ϬϬ Ϭ Ϭ Ϭ Ϭ Ϭ ϱ ϬϬ ϰ ͲϮϳ ϭϱ ϱϲ ϭϰ ϱϳ ϭϰ Ϭϳ hz Ͳϱ ϭ Ϭ ϯ ϭϯ ϱ Ϭ ϭϭ ϭϭ Ϭ ϲϯ ϴ ϴ ϴ ϭϱ ϱϳ Ͳ Ϯ Ϭ Ϭ ϳ Ϭϰ Ϭ ϲ ϭ ϱ ϱϲ ϭ ϰ ϴϭ ϰ ϰϰ ϰ Ϭϳ ϭ ϭϯϭ ϭ ϯ Ϭ ϯ ϯϯ Ϯ ϲ Ϯ ϱ Ϯ ϭ ϴϱ ϭ ϰϲ ϭ ϱϲ ϰϭϭ< ϮϬϬ< ϭϭϯ ϰ< < нϯϯй < ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϯ Ϭ ϭ ϴϱ W^ hzͿ нϳϭй Ͳϯ W^ й, E' Ϯ ϴ ϮϮ ^ > ^ D/> hzͿ нϯ нϯ DĂƌ :ƵŶ ϯ Ϭϱ ϱ ϲ ^ĞƉ ĞĐ ϰ ϳϲ ϲϱϱ ϯ ϯ Ϯϱ н ϯϯ ϭ Ͳϰϭй ϱ нϭ ϳϲϲ Ϯ нϭ ϯ ϳϳ нϭ ϴϰϭ нϭϰθй ϲ ϳ нй ϭ ϴ ϭ нϰ ϲ нϲϰй ϭ ϮϬϴ ϰ нϰϰй W^ й ^hzwz/^ ϮϬϯ ϮϭϮ Ϭ Ϯϱϭ Ϯϱϴ Ϯϱϭ ϮϱϮ ϴ Ϯϳ ϯϯϭ ϯϭϲ ϯ ϯϳϰ ϯϯ ϰϭϯ ϰ &he ^ Ϭϴϯ ϯϱϰ ϰ ϯϯϳ ϴ ϰ Ϭϰ ϰ ϰ Ϯ ϭϰϱ ϰ Ϯ Ϯϯϲ ϰ ϲ ϭ ϰ ϳϳ ϭθϰ ϰ ϱϳ ϬϬϲ ϱ Ϭϰϭ ϲθϯ ϱ Ϭϴϭ ϯϲ ϱ Ϭϲϯ Ϭϴϳ ϰ ϴϴϳ ϳ ϰ ϱθ Ϯ ϰ ϴϴϳ ϯϳϳ ϰ ϰ Ϭϴϱ ϰ ϳϮϬ ϲθ ^, Z ^, > z &he ^ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ^ĞƉ ϭϲ ĞĐ ϭϲ ϳ ϴϰ нϭϯй ϯ ϭϲϯ ϴ нϭθ DĂƌ :ƵŶ ϲ ϳϯ н ϳϭϭ Ͳϰϭй ^ĞƉ ĞĐ ϯϳ ϮϬ Ɛƚ ϰϭ ϮϬ ϮϬϭϴ Ɛƚ ϯϯ ϭϰ ϱͳljƌ,ŝőś ϯϳ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ ϰθϯ ϲϯϯ ϲθϰ ϳϲϮ ϰ ϴϴϴ Ϭ ϱ ϰϰ ϰϯϯ ϱ ϮϬϱ ϴϯ ϱ Ϯϳϲ ϱϱ ǀƐ /ŶĚ ǀŐ ϭ ϭdž ƵƌŽĮŶƐ ^ĐŝĞŶƟĮĐ h& &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -69- Health Care: Medical-Research Eqp/Svc

72 Superdry Plc UNITED KINGDOM ^ƵƉĞƌŐƌŽƵƉ ^'W ' ZW^ ϭ ϳ dž Ϯ Ϯ< Ϯ Ϭ< ϭ ϴ< ϭ ϱ< ϭ ϰ< ϭ ϯ< ϭ ϭ< ϭ Ϭ< Ϯϱ ϱ ϴϴϮ ϰ ϳϲϰ ϳ ϱ ϲϰϳ ϭ ϱθθ Ϯ Source: Corporate Website >KE KE džđś ' ϬϬ Ϯϳϳ нϰϰ ϭϯ ϱϳθϯϳϲ W^ ZĂŶŬ ϯ ZĞƚĂŝůͲ ƉƉĂƌĞů ^ŚŽĞƐ ĐĐ ƐƵƉĞƌŐƌŽƵƉ ĐŽ ƵŬ DŬƚ ĂƉ άϭ ϰθ ^ĂůĞƐ άϳϱϯ ϬϬD he/d </E' KD D'Dd ŽǁŶƐ ^hw Z'ZKhW W> ^/'E^ WZK h ^ E ^ >>^ >Kd,/E' E ^^KZ/ ^ he Z d, ^hw Z Zz Z E /E WWZKy/D d >z ϲ WK/Ed^ K& ^ > ZK^^ d, tkz> ^ t >> ^ KE>/E d, KDW Ez K&& Z^ Z E' K& WZK h d^ &KZ D E E tkd E d, KDW Ez KW Z d ^ d,zkh', d,z ^ 'D Ed^ Z d /> t,k> ^ > E EdZ > K^d^ d, Z d /> ^ 'D EdΖ^ WZ/E /W > d/s/d/ ^ KE^/^d K& d, KW Z d/ke K& d, he/d </E' KD Z Wh >/ K& /Z > E hzkw E E d, he/d ^d d ^ ^dkz ^ KE ^^/KE^ E >> /Ed ZE d ^/d ^ d, Z d /> ^ 'D Ed /^ /EsK>s /E d, ^ > dk /E /s/ h > KE^hD Z^ K& /d^ Z E E d,/z W Zdz >Kd,/E' &KKdt Z E ^^KZ/ ^ d, t,k> ^ > ^ 'D EdΖ^ WZ/E /W > d/s/d/ ^ KE^/^d K& d, KtE Z^,/W K& Z E ^ t,k> ^ > /^dz/ hd/ke K& /d^ Z E WZK h d^ >Kd,/E' &KKdt Z E ^^KZ/ ^Ϳ ZK^^ d, tkz> E dz ^ > ^ /d K&& Z^ Z E' K& WZK h d^ /E >h /E' dͳ^,/zd^ WK>K ^,/Zd^,KK ^ E ^t d^ :K'' Z^ dkw^ Z ^^ ^ : < d^ ^,/Zd^ <E/dt Z &KKdt Z '^ E ^^KZ/ ^ > ^^ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ EEh > Ͳ WZ E ϮϬϭϲ ϮϬ ϭϯϳ ϮϬ ϯϳ ϰϱ ϬϬ ϰϰ ϳϮ ϬϬ ϱϲ Ϭϳ ϳϳ ϴϭ ϱ ϭ ϭ W^ ' y ^, &>Kt ^,Z ' y ϭϰ ϯϳ ϰϳ ϲϳ ϲϲ Ϭϱ ϱϯ ϳ ϳϯ ϴϳ ϲϭ ϳϱ ϴϯ ϭ ϭϯϭ ϳϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯϭй ϭ ϭ Ϯ ϭ ϭϭй ϭϯй ϭϭй Ͳ ϭθй ^ƚăďŝůŝƚljͿ й ϱθй ϭй й й ϭθй ϭϭй ϭ й й Ͳ ϭϭй ϭϰ ^ƚăďŝůŝƚljͿ ϴ ϴϯй ϳϭй ϯϯй ϭ Ϯ й Ϯϯй й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ ' y ϳ ϲϭϰ ϭϰ< < ϯϭ< ϯϲ< ϰϯ< ϰ< < ϳϱ< /Es d K ϭ dž ϭϲ ƵŐ Ϯϱ ^ĞƉ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ^ĞƉ Ϯ KĐƚ Ϭϲ KĐƚ KĐƚ ϭϲ d й Ͳ ϳϮ ϳϭ ϳϮ ϳϮ ϳϱ ϳϱ ϴϭ ϳϲ d y Z d Ͳ Ϯϯй Ϯ й ϭθ ϭϲθ ϰ Ϯ ϭ ϭ ϯ ϯ Ϯϭϲ <>K' Ͳ Ϯ ϯ ϭ ϴ ϭ ϲ ϭ ϱ ϭ ϯ ϭ ϰ ϭ Ϯ Ϭ Ϯ ϭ Z Θ < s > ϯ ϴϲdž Ζ ϰ ϯϱ Ϯϱ Ϯϱ ϯϯ ϰϳ ϱϰ ϰϳ /s ' y Ϯϴ ϬϬ ϭ Ϳ /s 'Z Zd ϰϱ ϰϳ ϰϰ ϳϰ ϳϭ ϳ d Ϭ ϱϯ ϰ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϰͿ ϳϭ ϴϴ ϴϮ ϴ ϯϯ ϰϯ ϴϳ ϮϬ DW>Kz ^ ϯ ϭϰϯ йͿ ^ŚĂƌĞƐ ϴϭD &ůžăƚ ϯd W^ ƵĞ ϭ ϮϬϭϴĞ K, 6WURQJ JURZWK SURILOH ϬϬ ϬϬ ϮϬ ϬϬ ϬϬ ϬϬ ϭ ϴ ' y нϰϳ ϬϬ нϯ ϲ ϳ ϭϯϭϭ ϭϭ ϬϬ ϱϯ ϰ Ϭ ϰ ϲ Ϭ ϰϭϭ ϴ Ϭ ϯϱϯ Ϭ VWUHQJWKHQLQJ 56 OLQH ZLWK VWURQJ DFFXPXODWLRQ Ϯϰ ϭ Ϯ ϲ ϳ ϭ Superdry Plc (SDRY.GB) is a multi-channel branded fashion retailer operating under the Superdry brand. Increased brand outreach through franchised stores and the tapping of ecommerce opportunities have enabled the Company to grow faster than the industry. EUHDNRXW WR QHZ KLJKV DIWHU ORQJ SHULRG RI FRQVROLGDWLRQ Ϭ ϰ Ϭ ϯ ϱ ϯ ϮϬϬ Ϭ Ϭ ϲ ϱ Ϭ ϭϱϯ ϭϰϭ Ϯ ϭϯ ϰ Ϯ Ϭ Ϭ ϭϭϭ ϴ Ϭ Ϭ Ϭ ϭ ϴϴ ϭ ϳϲ ϰϳ ϭ ϰd Company Overview Superdry offers a wide assortment of products, such as t-shirts, denim, joggers, bags, and accessories to customers in 148 countries. The Company operates through two channels: retail, which comprises 233 owned stores and other outlets (as of H1 FY 2018) and ecommerce; and wholesale, which includes 372 stores under franchise and license agreements (as of H1 FY 2018), key accounts, and independents. H1 FY 2018 revenue by segment: retail (including ecommerce), 60%; wholesale, 40%. O Neil Methodology The stock dipped after H1 FY 2018 results. Given the Company s strong growth trajectory, investors can initiate positions once the stock re-breaks out of its recent flat base pattern with pivot level at 2,000.45p. From FY 2015 to FY 2017, the Company reported revenue and EPS CAGR of 24% and 20%, respectively. The stock has a strong EPS Rank of 75. In H1 FY 2018, revenue came in at 402M, up 20.4% y/y. Retail sales increased 12.8% y/y (LFL growth of 6.3% y/y) to 242.7M. The wholesale channel reported sales of 159.3M (+34.1% y/y). Underlying basic EPS was reported at 25.8p, up 22.9% y/y. ϮD Ϭ< Ͳ ϰϭϭ< ϲ ϭ< ϭϯ&/e E / >^ :Ƶů ϭϯ KĐƚ ϭϯ W^ ' yͿ ϲϭ Ͳϰϴй W^ й, E' Ϭ^ > ^ D/> ' yͿϭϱ ϴϮϬ Ϭ :ĂŶ нϭ W^ й ^hzwz/^ ϲ ϱϰ &he ^ Ɖƌ ϯϱ ϭϭ :Ƶů KĐƚ Ϯ ϲϱ :ĂŶ ϭϰ Ɖƌ ϭϰ ϯϭ ϯϲ :Ƶů ϭϰ KĐƚ ϭϰ :ĂŶ ϭϱ Ɖƌ ϭϱ нϯϯй ϮϬ Ϭ Ϭ ͲϳϮй ϭ Ϭ Ͳϭϭй ϳ Ϭ нϱϰθй ϮϬ ϴϮϬ Ϭ нй Ϯϳ ϴϰϬ Ϭ н нϯϭй ͲϱϮй н нϭθ :Ƶů ϭϱ KĐƚ ϭϱ :ĂŶ ϭϲ Ɖƌ ϭϲ ϰϭ ϱϭ Ͳϰ Ϯϱ ϰ Ϭ нϰй Ϯ Ϭ нй нϯϯй :Ƶů ϭϲ н KĐƚ ϭϲ ϭϭ ϱ :ĂŶ Ɖƌ ϲ ϱθ нй ϯϯ ϰϭϭ Ϭ нϳϯй ϰϭ Ϭ Ϭ нϯϭй нй нϭ KĐƚ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ ϭϲ ϱϲ ϱͳljƌ,ŝőś ϱϭ Ϭ ϱͳljƌ >Žǁ Ϭ ϲθ ϳϴ ϴϱ ϴ ϭϭϰ ϭϯϳ ϭϯ ϭ ϭ ϭϰϭ ϭϰϲ ϭϲ ϱ Ϯϭϭ ϮϬϯ ϲ ϱ ϭθϯ ϭθϯ Ϯ^, Z ^, > z &he ^ ϭϯd ϭϭd D D D ϮϬD ϮϭD ϮϯD ϮϯD D ϮϯD D D D ϮϴD ϯϭd ϮD ϯϭd ϯϭd ϯϭd Π ϮϬ t/>>/ D KΖE /> н K /E :Ƶů ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ^ƵƉĞƌŐƌŽƵƉ ^'W ' Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ KĐƚŽďĞƌ ϭϲ ϮϬ Growth Drivers Management believes that the expansion of its franchise-based model in Europe, North America, and China will increase brand visibility. It aims to increase franchised store count by 60 (+19% y/y) in FY Management sees 20% revenue growth opportunity for wholesale in the medium term. The Company is integrating its inventory pool, where the wholesale product range is a subset of the retail range which, in turn, will be a subset of the ecommerce offering. This will enable the Company to drive purchasing economies and sell-through. Ecommerce stock available for sale has grown tenfold in the past three years. The Company s strategy includes growing its womenswear segment to the same value as menswear. In FY 2017, womenswear grew faster than menswear and accounted for 36.5% of total revenue. Looking Forward In FY 2018, the Company expects to add 75K sq ft of retail space in Europe and 50K sq ft in the U.S. Management expects FY 2018 underlying profit before tax to be in line with consensus estimates of 98.9M. Next Catalyst: The Company will report FY 2018 trading update on May 10. Local Code: UK:SDRY Bloomberg Symbol: SDRY:LN ISIN: GB00B60BD

73 UNITED KINGDOM ^ƵƉĞƌĚƌLJ WůĐ ^ Zz ' W^ dž Ϯ Ϭ ϮϬϴ ϯ ϭ ϳ ϱ Ϭ ϭϱθ ϯ ϭϰϭ ϳ ϭϯϱ Ϭ ϴ ϯ Ϭ Ϭ ϭ ϲϳ >KE KE džđś ' ϬϬ Ϯϳϳ нϰϰ ϭϯ ϱϳθϯϳϲ W^ ZĂŶŬ ϳϰ ZĞƚĂŝůͲ ƉƉĂƌĞů ^ŚŽĞƐ ĐĐ ĐŽƌƉŽƌĂƚĞ ƐƵƉĞƌĚƌLJ ĐŽŵ DŬƚ ĂƉ άϭ ϰϭ ^ĂůĞƐ άθϯϭ ϬϬD he/d </E' KD Superdry Plc ^ŚĂƌĞƐ ϴϮD &ůžăƚ ϱϯd W^ ƵĞ ŝŷ ϭϱϯ ĂLJƐ ĞͿ K, Ͳϭϴй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ϬϬ ^hw Z Zz W> &KZD Z>z ^hw Z'ZKhW W> ^/'E^ WZK h ^ E ^ >>^ >Kd,/E' E ^^KZ/ ^ he Z d, ^hw Z Zz Z E /E WWZKy/D d >z ϲ WK/Ed^ K& ^ > ZK^^ d, tkz> ^ t >> ^ KE>/E DKZ EEh > Ͳ WZ E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ Ϭ ϭϭ ϭ ϰϲ Ϭ ϰϯ Ϭ ϱϱ Ϭ ϱϯ Ϭ ϰϭ Ϭ ϳϴ Ϭ ϲϱ Ϭ ϲ W^ hz ϭ Ϭ йÿ ϭ Ϯϴ ϭÿ ^, &>Kt ^,Z hz Ϭ ϭϲ Ϭ ϱϱ Ϭ ϳϰ Ϭ ϲϱ Ϭ ϴϳ ϭ Ϭϲ ϭ Ϭϲ ϭ ϭ ϰϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭ Ϯ ϭ ϭϭй ϭϯй ϭϭй Ͳ ϭθй ϭϯ ^ƚăďŝůŝƚljͿ й ϱθй ϭй й й ϭθй ϭϭй ϭ й й Ͳ ϭ ^ƚăďŝůŝƚljͿ Ϯ ϲϰй ϴϴй ϲ ϰϰй ϭϯй й ϯ й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϴϱ ϭϲϭ ϳ ϰ ϱ ϲϳ ϳϲϰ ϴϰ /Es d K ϭ dž ϭϲ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ ϳϴ ϳϳ ϳϴ ϳϴ ϱϳ ϱ ϲϯ ϱϰ d y Z d Ͳ Ϯϯй Ϯ й Ϯϴϯ Ϯϳϱ ϳ ϮϯϮ ϳ ϱ ϭ ϭθθ ϭθϰ <>K' Ͳ ϭ ϰ ϭ Ϯ ϭ ϭ ϭ Ϭ Ϭ Ϭ ϲ Ϭ ϳ ϭ Ϭ Ϭ Z Θ < s > ϯ ϴϱdž Ζ ͲϮ ͲϮ ϭ /s hz Ϭ ϭ Ϳ /s 'Z Zd ϴϴ ϴϳ ϴϴ ϲ ϲ ϲϰ ϲϲ d Ϭ ϱϰ ϰ ϬϬͿ >W, Ϭ Ϭϯ Ϭ ϬϮͿ ϭϯ ϭ ϭ Ϭ ϳϲ ϲθ ϲ ϭ ϮϬ DW>Kz ^ ϯ ϭϰϯ йͿ ϬϬ ϰϭ ϬϬ ϬϬ ϬϬ ϮϬ ϬϬ ϬϬ ϳ ϳ Ϯϴ ϬϬ ϴϯ ϭ ϳϭϱ ' y ϲϯ Ͳϴϯ ϬϬ Ͳϰ ϲϯй ϱϰ ϬϬ ϰϱ ϴϯ ϭϯϭϭ ϭϭ ϲϲ Ͳ ϰϭ ϲϳ ϯϳ ϬϬ Ϭ ϯϯ ϯϯ Ϭ Ϯ Ϭ Ϯϱ ϬϬ Ϭ ϮϬ ϴϯ Ϭ ϰ Ϭ ϭϱ ϴϯ ϯ ϭϰ Ϭ ϭϯ Ϭ ϴϯ ϬϬ Ϯ Ϭ Ϭ ϴ ϯϯ ϮϬϬ ϰd ϮD ϰθ ϭ< Ϭ< ϰϭϭ< нϭϯй Ϯ&/E E / >^ :ĂŶ Ɖƌ Ϯ W^ hzͿ Ϭ ϰϭ й W^ й, E' нй ϳ^ > ^ D/> hzͿ Ϯ ϳ й н W^ й ^hzwz/^ ϴ&hE ^ ϳϴ ϴϱ ϲ^, Z ^, > z &he ^ D D :Ƶů ϴ D KĐƚ Ϭ Ϭϯ Ͳϳ ϲ ϰ нϭ :ĂŶ ϭϰ ϭϭϰ ϮϬD ϭϯϳ ϮϭD Ɖƌ ϭϰ Ϭ Ͳ ϭ Ϭ Ͳϱ :Ƶů ϭϰ ϭϯ ϮϯD ϭ ϮϯD KĐƚ ϭϰ Ϭ нϲϯϯй ϱ нϭ :ĂŶ ϭϱ ϭϯ D ϭϰϭ ϮϯD Ɖƌ ϭϱ Ϭ ϱϯ нϯ ϭ ϴ нϭй :Ƶů ϭϱ ϭϰϱ D ϭϲθ D KĐƚ ϭϱ Ϭ ϭϰ Ͳϯ ϯϱϲ ϭ нй н ϰ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E :ĂŶ ϭϲ Ϯ ϮϴD Ɖƌ ϭϲ Ϭ ϱϯ ͲϮй ϰ ϱ нϭ :Ƶů ϭϲ ϮϬϭ ϯϭd ϱ ϮD KĐƚ ϭϲ Ϭ Ͳ ϯϳϯ Ϭ нϰй нϭ ϰ ϯϭd :ĂŶ Ɖƌ Ϭ ϴϯ нϲ ϰϲ ϲ нй :Ƶů ϭθθ ϯϯd ϮϬϲ ϯϭd KĐƚ Ϭ ϭϭ Ͳϭ ϰϱθ ϯ нϯϯй :ĂŶ ϭθ Ɖƌ ϭθ Ϭ ϳĞ ͲĞ ϱϯ ϲğ нğ Ϯϯ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ ϭϱ ϭθ ϱͳljƌ,ŝőś ϱϭ Ϭ ϱͳljƌ >Žǁ Ϭ ϭθϯ ϯϭd ϮϭϮ ϯϯd ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ^ƵƉĞƌĚƌLJ WůĐ ^ Zz ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -71- Retail: Retail-Apparel/Shoes/Acc

74 B&M European Val.Ret. (Di) UNITED KINGDOM ZW^ ϭ ϲ dž ϯϳ ϱ ϴϭϮ ϱ ϳ Ϭ ϲθϳ ϱ ϲϯϱ Ϭ ϱϲϯ ϱ Ϭ Ϭ ϰϯϳ ϱ ϯϳϱ Ϭ ϯϭϯ ϱ Ϯϴϳ ϱ Ϯ ϱ Source: Corporate Website B&M European Value Retail (BME.GB) is a general merchandise discount retailer, operating B&M and Heron Foods stores in the U.K. and Jawoll stores in Germany. The Company is expected to benefit from the consumer shift to discount stores. Company Overview B&M European Value Retail S.A. is a fast-growing discount retailer offering a wide range of FMCG brands and non-grocery products. As of Q3 FY 2018, the Company operated 916 stores (569 B&M, 263 Heron Foods, and 84 Jawoll). Q3 FY 2018 revenues by segment: B&M, 86%; Heron Foods, 8%; Jawoll, 6%. O Neil Methodology The stock gained 5% accompanied by high volume on January 12 after the Company s Q3 FY 2018 trading update. As a result, the stock re-broke out of an earlier flat base and remains actionable. From FY 2015 to FY 2017, the Company reported a sales CAGR of 24%. During this period, pretax margins expanded from 4% to 8% and ROE improved from 11% to 18%. In Q3 FY 2018, revenue increased 23% y/y to 969.8M. B&M U.K. LFL sales increased 3.9% y/y, beating consensus estimates of 2.5% y/y. Going forward, we expect growth to come from customers shift to discount stores, synergies from the Heron Foods acquisition, and the ongoing store expansion. Growth Drivers Management believes there is potential for at least 950 B&M stores in the long term, which leaves significant room for growth given the current store count of 569. Local Code: UK:BME Bloomberg Symbol: BME:LN ISIN: LU ΘD ƵƌŽƉĞĂŶ săů ZĞƚ ŝͿ D ' >KE KE džđś >hϳϭϲϯ ďăŷěŵƌğƚăŝů ĐŽŵ W^ ZĂŶŬ >ƵdžĞŵďŽƵƌŐ he/d </E' KD /ŶĐ ZĞƚĂŝůͲ ŝɛđžƶŷƚθsăƌŝğƚlj DŬƚ ĂƉ άϯ ϳϰ ^ĂůĞƐ άϯ ϰϯ ^ŚĂƌĞƐ ϭ ϬϬϬ &ůžăƚ ϳD K, Ͳϭй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ ΘD hzkw E s >h Z d /> ^ /^ he/d </E' KDͲ ^,K> /E' KDW Ez K& d, 'ZKhW d, KDW Ez /^ E' ' /E s Z/ dz Z d />/E' /E d, he/d </E' KD E ' ZD Ez /d KW Z d ^ /E dtk ^ 'D Ed^ d, h< Z d /> ^ 'D Ed /E >h /E' 'ZK Zz Z d /> Z^ E ' E Z > D Z, E /^ Z d /> Z^ E d, ' ZD E Z d /> ^ 'D Ed /d ^ >>^ Z E' K& 'ZK Zz E & ^d DKs/E' KE^hD Z 'KK ^ &D 'Ϳ WZK h d^ /E /d^ ΘD ^dkz ^ /d^ &D ' WZK h d^ /E >h K /d zkhz^ >& E KZ d/e' 'KK ^,Kh^,K> 'KK ^ &KK KE& d/ke Zz ^K&d Z/E<^ > K,K> E dk/> dz/ ^ E ^ ^KE > 'KK ^ /d ^ >>^ EKEͲ'ZK Zz WZK h d^ he Z s Z/Kh^ d 'KZ/ ^ ^h, ^,Kh^ t Z ^ > dz/ > ' Z E/E' dkz^ E W d Z /d^ 'ZK Zz WZK h d^ Z D / Ed &KK Z/E< E KE& d/ke Zz >/E ^ /d >^K KW Z d ^ he Z d 'KZ/ ^ ^h, ^ ^WKZd^ E > /^hz,kd E >/s/e' s Zz z ^^ Ed/ >^ ^d d/ke Zz >Kd,/E' E &KKdt Z '/&d^ z E t/ed Z &h > /d^ Z E ^ /E >h hz >> < >>K''Ζ^ K Ͳ K> E E ^d> DKE' Kd, Z^ > ^^ EEh > Ͳ D Z E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϯ ϯ ϰ Ͳϭ ϰ ϯ ϴϲ ϭϯ ϰϱ ϭϰ Ϯ W^ ' y йÿ ϮϬ ϰϭ ϭÿ ^, &>Kt ^,Z ' y ϱ ϲθ ϲ ϱ ϯ ϭϰ ϲ ϭϰ ϲϲ ϭθ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳϭй ϰй ϴй ϴй Ͳ ϭй ϱθ ^ƚăďŝůŝƚljͿ й ϭϭй ϭ ϭθй Ͳ й ϯ ϯ й й й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ ' y ϳϲ< < ϱ< ϭϲϱ< ϮϬϰ< ϯ< /Es d K ϯ ϴdž ϯϭ :ƵŶ Ϭ :ƵŶ ϭϲ :ƵŶ Ϯϯ :ƵŶ :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ ƵŐ Ϭϰ d й Ͳ ϲϯй ϱ ϲ ϲθ ϲϳ ϲϲ ϲϳ ϲϲ ϲϱ ϲϯ ϲϲ ϲϲ d y Z d Ͳ ϯ й Ϯϭй ϲ ϰϯϱ ϲ ϴϲϲ ϳ ϭθϭ ϳ ϭθ ϳ ϳ ϳ ϯϳϲ ϳ ϳ ϳ ϱϲϲ ϳ ϳϴϱ <>K' Ͳ Ϭ ϲ Ϭ ϲ Ϭ ϲ Ϭ ϱ Ϭ ϰ Ϭ ϱ Ϭ ϰ Ϭ ϱ Ϭ ϱ Z Θ < s > ϰ ϲϱdž Ζ ϳ Ͳϭϰ Ͳϰ Ͳϴ ϰ ϭϲ ϭϰ ϯϭ ϯϯ /s ' y ϱ ϭ Ϳ /s 'Z Zdнϭϭ ϱϯͿ ϴϳ ϴϮ ϴϯ ϴϱ ϴϱ ϴϯ ϴϮ ϴϴ ϴ d Ϭ ϲϯ ϴ ϬϬͿ >W, Ϭ ϭϭ Ϭ ϬϴͿ ϳ ϭϲ ϮϬ ϯϯ ϯϱ ϰϭ ϮϬ DW>Kz ^ Ϭϱϳ Ϳ LQ :.6 ϭϯϭϭ ϭϭ ϬϬ Strong top line and bottom line growth trend Ϭ Ϭ Ϭ Ϭ Ϭ ϰ Ϭ ϯ ϭ Ϯϯϳ ϱ ϯ ϯϳϰ ϬϬ ' y ϮϭϮ ϱ Ϭ нϭϰ нϰ Ϭ ϭθϳ ϱ Ϭ ϭϲϯ ϱ ϭ Ϭ ϳ ϱ ϴ н Ϯ Ϭ Ϭ ϭϭθ ϴ Ϭ ϲ ϯ ϭ ϯ ϳϱ ϭ Strong RS and A/D rating ϴϭ Ϯϱ ϳϱ ϬϬ ϲθ ϳϱ ϭ ϭϯϭ ϭ ϲϯ Ϭ ϱϲ Ϯϱ ϬϬ ϰϯ ϳϱ ϯϳ ϯϭ Ϯϱ ϮϬD D ϴD Ͳϯϯй ϯd ϭd DĂƌ ϭϯ &/E E / >^ :ƵŶ ϭϯ ϯ ϯ W^ ' yͿ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϰ :ƵŶ ^ĞƉ ͲϬ ϴϴ ĞĐ Ϭ ϱϱ нϭϯй W^ й, E' ϳϲ ϰϭϲ Ϭ ^ > ^ D/> ' yͿ ϮϮ ϱ нϯ Ϯϴ ϯϯ ϯ Ϯ ϭϱθ ϳ ͲϮ Ϭϳ ϱ ϰ ϱ ϮϬ ϳ ^ĞƉ ϭϲ ϱ ϳ ĞĐ ϭϲ DĂƌ ϴ ϱϭ :ƵŶ Ͳ н нϯϱϭй нй нϭϭй нϭ ϮϬϭϴ Ɛƚ Ϯϭ ϰϭ ϯϳ Ϯϳϲ Ϯ ϯϳ ϭϲ Ϯ ϯ Ϭϯϭ ϰϱ ϳϭϲ ϲ ϭ ϱθϱ ϲ Ϯ ϰϳϲ Ϭ ϮϬ Ɛƚ ϭθ ϯϯ нϯϯй нϯ нϭϱ нϯϭй нй н W^ й ^hzwz/^ ϱͳljƌ,ŝőś Ϯϱϲ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ &he ^ ^, Z ^, > z &he ^ Π ϮϬ t/>>/ D KΖE /> н K /E ϲθ ϴϯ ϴϴ ϲ ϭϯθ ϭϲϲ ϭθϰ ϮϬϬ Ϯ Ϯϯϳ Ϯϯϲ ϮϱϮ ϴϳD ϭϯϱd ϲd ϭθϳd D ϮϳϰD ϱd ϯϱϱd ϰϭϲd ϰϭϰd D ϯϳϰd ǀƐ /ŶĚ ǀŐ ϭ Ϯdž ΘD ƵƌŽƉĞĂŶ săů ZĞƚ ŝͿ D ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ ƵŐƵƐƚ Ϭϰ ϮϬ B&M stores continue to deliver industry-leading new store payback period of eight months, which is aiding the rapid expansion of its footprint. The Company acquired U.K. grocer Heron Foods, a limited assortment discount-convenience chain, in August The Company expects to achieve synergies from improved buying power and scale benefit on ambient food. This also provides a platform for B&M stores to expand in frozen food. The Company stocks a wide variety of products but sticks to a narrow assortment within categories. The Company s strategy of focusing on stocking the fastest moving products has been a key factor in keeping prices low and attracting shoppers. In the near term, with negative real wage growth in the U.K., B&M is strategically well positioned to increase its market share as more shoppers are shifting regular purchases to discount stores. Looking Forward For H2 FY 2018, the Company has targeted to open at least 30 new stores (including four relocations) in its B&M business (17 net new stores opened in Q3 FY 2018) and four new stores in its Jawoll business (two net new stores opened in Q3 FY 2018). Next catalyst: The Company s FY 2018 preliminary results are expected on May

75 UNITED KINGDOM W^ dž ϴϯ ϲϯ ϱϰ ϬϬ ϰϱ ϴϯ ϰϭ ϲϳ ϯϳ ϯϯ ϯϯ Ϯ ΘD ƵƌŽƉĞĂŶ săů ZĞƚ ŝͿ D ' >KE KE džđś >hϳϭϲϯ ďăŷěŵƌğƚăŝů ĐŽŵ W^ ZĂŶŬ >ƵdžĞŵďŽƵƌŐ he/d </E' KD /ŶĐ ZĞƚĂŝůͲ ŝɛđžƶŷƚθsăƌŝğƚlj B&M European Val.Ret. (Di) DŬƚ ĂƉ άϰ ϭϰ ^ĂůĞƐ άϯ ϲϳ ^ŚĂƌĞƐ ϭ ϬϬϭ &ůžăƚ ϳD K, ͲϮй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 ΘD hzkw E s >h Z d /> ^ /^ he/d </E' KDͲ ^,K> /E' KDW Ez K& d, 'ZKhW d, KDW Ez /^ E' ' /E s Z/ dz Z d />/E' /E d, he/d </E' KD E ' ZD Ez DKZ EEh > Ͳ D Z E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ Ϭ Ϭϱ Ϭ Ϭϱ ͲϬ ϬϮ Ϭ Ϭϱ Ϭ ϭϲ Ϭ W^ hz Ϭ ϮϬ Ϯϭй Ϭ Ϯ ^, &>Kt ^,Z hz Ϭ Ϭϳ Ϭ Ϭϴ Ϭ Ϭϰ Ϭ ϭϰ Ϭ Ϭ Ϯϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳϭй ϰй ϴй ϴй Ͳ ϭй ϱ ^ƚăďŝůŝƚljͿ й ϭϭй ϭ ϭθй Ͳ ϭй ϱ ^ƚăďŝůŝƚljͿ Ϯ Ϯϴй ϯ й ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϰ ϭ ϲϯϱ Ϯ Ϯ Ϯ ϱϳ Ϯ ϴ /Es d K ϯ ϴdž ϯϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ ϲϯй ϱ ϲ ϲϳ ϲθ ϲθ ϲθ ϲϲ ϲ ϲϳ ϲϲ ϲϲ d y Z d Ͳ ϯ й Ϯϭй ϯ ϴϰϯ ϯ ϴ ϯ ϴϰϲ ϯ ϳ ϯ ϳ ϯ Ϯ ϰ ϬϮϭ ϯ ϴϳ ϯ ϲϳϯ <>K' Ͳ ϭ Ϭ ϭ Ϭ ϭ Ϯ ϭ Ϯ ϭ Ϯ ϭ ϱ ϭ ϰ ϭ ϴ ϭ ϱ Z Θ < s > ϰ ϴdž Ζ ϳ ϭϲ Ϯϭ ϮϬ ϭθ ϮϬ /s hz Ϭ Ϭϳ ϭ Ϳ /s 'Z Zdнϴ ϱϯͿ ϴϴ ϴ ϴϴ ϴ ϴϮ ϴϯ ϴϯ ϴϭ ϴϮ d Ϭ ϱϭ ϱ ϬϬͿ >W, Ϭ Ϭ ϬͿ Ϯ ϮϬ ϭϰ Ϯϯ ϭθ Ϯϯ Ϯϴ ϮϬ DW>Kz ^ Ϭϱϳ Ϳ ϭϯϭϭ ϭϭ ϬϬ Ϭ Ϭ Ϭ Ϯϱ ϬϬ Ϭ ϮϬ ϴϯ Ϭ ϰ Ϭ ϰ ϭϱ ϴϯ ϭϱ ϭϰ Ͳϱ ϬϬ ϯ ' y Ͳϭ й Ϭ ϭϯ Ϭ ϴϯ ϬϬ ϴϮ Ϯ Ϭ Ϭ ϳ Ϯ Ϭ ϳ Ϭϴ ϭ ϲ Ϯϱ ϭ ϱ ϱ ϬϬ ϰ ϱθ ϭ ϭϯϭ ϭ ϰ Ϭ ϯ ϳϱ ϯ ϯϯ Ϯ Ϯ Ϯ ϮϬD ϭϭ D ϴD ϯd Ͳϯϯй ϭd ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ Ϭϱ W^ hzͿ W^ й, E' ϭ ϰ Ϯ ^ > ^ D/> hzͿ нϯθй W^ й ^hzwz/^ &he ^ ^, Z ^, > z &he ^ :ƵŶ ^ĞƉ ͲϬ Ϭϭ ϯ ĞĐ Ϭ Ϭϭ ϯϱϯ ϳ ͲϬ Ϭϯ ͲϮϬ ϰϳθ ϰ нϰϭй ϴϮ ϭϯϱd ϴϳ ϲd Ϭ Ϭϴ н ϱϭθ ϯ нϰ ϱ ϭθϳd ϭϯϳ D Ϭ Ϭϳ нϯϯϯй ϭ Ϯ ϱ нϭϲϰй ϭϲϯ ϮϳϰD ϭ ϰd ϯϱϱd Ϯϭϲ ϰϭϲd ^ĞƉ ϭϲ Ϭ Ϭϳ ϭ Ϯϳϴ Ϯ нϭй ĞĐ ϭϲ Ϯϯϲ ϰϭϰd Ϯϯϲ D DĂƌ Ϭ нϭϭй ϭ ϱϰθ ϳ нϭϲ :ƵŶ Ϯϱϭ ϯϳϯd ϯ ϰϭϰd ^ĞƉ Ϭ Ϭϴ н ϭ ϱϯϳ нϯ ĞĐ Ϯϴ ϮϬϭϴ Ɛƚ Ϯϯ ϮϬ Ɛƚ ϱϯ ϱͳljƌ,ŝőś Ϯϱϲ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ ϲθ ϴϳD Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϭ нϭϯй ϱϳϲ ϲ нϭϭй ϯϳϯ ϰd ǀƐ /ŶĚ ǀŐ ϭ Ϯdž ΘD ƵƌŽƉĞĂŶ săů ZĞƚ ŝͿ D ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -73- Retail: Retail-Discount&Variety

76 Amplifon ITALY Source: Corporate Website Strong estimate Solid three-year growth rates No overhead supply Break out to all time highs Strong earnings profile Rising R/S rating Amplifon S.p.A is a provider of hearing solutions and services, with a global market share of 9%. The Company continues to benefit from an aging population. Company Overview Amplifon offers hearing instruments and electronic devices that receive, process, and amplify sounds and then transmit to them to the ear. It operates through a network of approximately 9,900 points of sale in 22 countries. The Company operates through sevearl brands: Sonus, Miracle Ear, Beter Horen, and Dialogue, among others. Q revenues by geography: EMEA, 64%; Americas, 20%; Asia Pacific, 16%. O Neil Methodology The stock breached its 50-DMA on October 12 but bounced back to regain it recently on the back of strong Q results. Even though revenue for the quarter missed consensus estimates marginally, recurring EBITDA beat consensus estimates. The Company reported Q revenue of 278M (+7% y/y), on the back of organic growth of 3.2%. Net profit and EPS both grew approximately 16% y/y to 11.2M and 0.05, respectively. The Company s sales and earnings had CAGR of 11% and 69%, respectively, for During this period, its pretax margins expanded from 5% to 10% and its ROE improved from 3% to 12%. The Company has a strong fundamental profile with an EPS Rank of 92, increasing cash flow/share, improving pretax margins, and ROE of 12%. Increasing sponsorship 40-Week MA 10-Week MA R/S line at highs with rising A/D rating Growth Drivers The Company reported organic growth of 6.2% in the first nine months of 2017, driven by double-digit organic growth from New Zealand. The strong momentum in New Zealand is a result of successful lead generation activity. The Company s network expansion program continues, with an addition of 295 stores and 104 shop-in-shops in the first nine months of 2017, of which 34 stores and 18 shop-in-shops were opened during Q Management indicated a tax rate reduction of 400bps to 36.3% from 40.4% in 2016 following a positive contribution of business profits from Germany. The Company completed the acquisition of AudioNova France & MiniSom Portugal, aimed at strengthening its position in these core markets. The two businesses generated combined annual revenue of 25M in Looking Forward The Company expects revenue growth to be significantly higher than the market, subsequently gaining market share. Revenue is expected to be in line with 2016 top-line growth. Next catalyst: The Company will report Q results on March 6, Local Code: IT:AMP Bloomberg Symbol: AMP:IM ISIN: IT

77 ITALY ŵɖůŝĩžŷ DW /d W^ ϯϯ dž ϭ ϭϱ ϭ Ϭϯ Ϭ ϭ Ϭ ϳ Ϭ ϳϯ Ϭ ϲϳ Ϭ ϱθ Ϭ ϱϯ Ϭ ϰϱ D/> E džđś /dϭϭϭϰϭϱϲθ нϯ ϬϮ ϱϳϰϳϯϭ W^ ZĂŶŬ Ϯ ZĞƚĂŝůͲ^ƉĞĐŝĂůƚLJ ĂŵƉůŝĨŽŶ ĐŽŵ DŬƚ ĂƉ Φϯ ϭϯ ^ĂůĞƐ Φϭ Ϯϯ DŝůĂŶ /d >z Amplifon ^ŚĂƌĞƐ ϲd &ůžăƚ ϴϰD W^ ƵĞ ŝŷ Ϯϳ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 DW>/&KE ^W /^ E /d >zͳ ^ KDW Ez E' ' /E d,, Z/E' ^z^d D^ /E h^dzz /d /^dz/ hd ^ :h^d^ E W Z^KE >/ ^ d,, Z/E' / ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ͲϬ Ϭϴ Ϭ ϭϱ Ϭ ϭϲ Ϭ ϮϬ Ϭ ϮϬ Ϭ Ϭϲ Ϭ Ϯϭ Ϭ Ϯϭ Ϭ Ϯ W^ hz Ϭ ϰϭ йÿ Ϭ ϰϳ ϭÿ ^, &>Kt ^,Z hz Ϭ Ϯϴ Ϭ ϰϭ Ϭ ϯ Ϭ ϰϰ Ϭ ϱϭ Ϭ ϯϳ Ϭ ϱθ Ϭ ϱθ Ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϴй ϭ Ͳ й ϲ ^ƚăďŝůŝƚljͿ ϭϯй Ͳ ϭ ϭϭй ϭϯй ϭϭй ϯй ϭϭй ϭ ϭϯй Ͳ Ϯϭй ϯϯ ^ƚăďŝůŝƚljͿ Ͳϰй Ϯй ϴй ϭ Ϯй ͲϮй ϴй ϭ ϭ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϲϰϭ ϲϱϳ ϴ ϴϮϳ ϴϰϳ ϴϮϳ ϴϭ ϭ Ϭ ϭ ϯ /Es d K ϯdž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϳ ϳϮй ϲϯ ϲϭ ϲϰ ϲϲ ϲϲ ϲϲ ϲϳ ϲϲ ϲϳ d y Z d ϯ ϰ ϰϭй ϰϯϱ ϰϭθ ϯ ϯ ϯϲϲ ϭ ϭ ϯ <>K' ϭ Ϭ Ϭ ϳ Ϭ Ϭ ϭ ϭ ϭ Ϯ ϭ ϯ ϭ ϴ ϭ ϱ Z Θ < s > ϱ ϱϲdž Ζϭϲ Ͳϭ Ͳ ϰ ϲ ϭϰ ϰϭ ϯϱ /s hz Ϭ Ϭϳ Ϭ Ϳ /s 'Z Zdн Ϳ ϲϰ ϲϭ ϲϲ ϲϳ ϲθ ϳϳ ϴϭ ϴϭ d Ϭ Ϯ ϯ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬͿ ϱ ϲϳ ϱ ϱϯ ϱϯ ϱϳ ϱϰ ϱϰ ϮϬϭϲ DW>Kz ^ ϳ ϮϬϰ Ϳ ϭϱ Ϭ ϯ Ϭ ϯϲ Ϭ ϯϯ Ϭ ϯϯ ϳϴ hz ͲϬ ϲ ϭϯ Ͳϰ ϲϰй ϭϭ Ϭ Ϭ Ϯϳ Ϭ ϴ Ϭ Ϯϭ ϴϭ Ͳ Ϭ ϭθ ϳ ϲ Ϭ ϭϱ Ϭ ϭϰ ϱ ϰ ϲ Ϭ ϰ Ϯ Ϭ ϭϯ ϯ ϴ Ϭ ϯ ϰ Ϭ Ϭ ϯ Ϭ Ϭϳϴ Ϭ ϬϳϮ Ϭ Ϭϲϲ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ Ϭϱϳ ϭ Ϭ Ϭϱϭ ϭ ϳ Ϭ Ϭϰϱ ϭ ϱ Ϭ Ϭϯ Ϭ Ϭϯϲ ϭ ϯ ϭ Ϯ ϯd Ϯ ϬD Ϭ< нϯ ϰϭϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ ϭϯ ͲϬ Ϭϭ W^ hzͿ нϯ ͲϮϬ W^ й, E' Ϯ ϯ ϭθ ϰ ^ > ^ D/> hzͿ н Ͳϯй :ƵŶ Ϭ Ϭϯ Ͳϰ Ϯ ϱ нϰй ^ĞƉ ͲϬ Ϭϯ ͲϰϬ ϴ Ϭ Ͳ W^ й ^hzwz/^ ϭϯθ &he ^ ϭ ϯϯ ϴ ϭθθ ϯϳd ^, Z ^, > z &he ^ ϭ ϰϭd ϭϭϯ ϰϰd ĞĐ Ϭ Ϭϲ Ͳϱ ϭ ϰ Ͳϰй нθ Ϭ ϰθd Ϭ Ϭϱ н ϭθθ ϯ Ͳϭй Ϭ Ϭϲ н ϴ ϭ нϰй Ϭ ϬϮ нϭϲ ϮϬϲ нϭ Ϭ Ϭ нϱ ϳ ϲ нϭϭй Ϭ ϬϮ Ͳϲ Ϯϯϭ ϯ нϯϯй Ϭ Ϭϳ нϭ ϴ нϭθй Ϭ Ϭϯ нϱ Ϯϯϯ ϱ нй ϴ ϰθd ϳ ϰθd ϴ ϰd ϭϯϭ ϰϱd ϯ ϰϯd ϭϰϯ ϰϭd Ϯ ϰϯd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ нϭϭй Ϭ Ϯ нϭϯй ͲϭϮ ϭθϱ D Ϭ Ϭϰ н Ϯϱϰ ϱ нϭ Ͳ ϯй ϮϬϭ ϰϯd Ϭ нϰϯй Ϯϴ ϳ нθй Ͳϭ Ϯ ϱϯd ^ĞƉ ϭϲ Ϭ Ϭϰ нϯϯй Ϯϱ ϳ нϭϭй н ϰ ϱϰd ĞĐ ϭϲ Ϭ ϭϭ нϭ ϯϯ Ϯ нϭ нϳ ϯй ϳ ϱϰd DĂƌ Ϭ Ϭϲ нϱ Ϯϲ ϭ нϭ нϱ Ϯϱ ϱϯd :ƵŶ Ϭ ϭϯ нϯ ϯϯϳ ϳ нй ^ĞƉ Ϭ Ϭϱ нϯ Ϯϳϴ Ϭ н ĞĐ Ϭ ϭϲğ нϰğ ϯϱϳ ϱğ нğ Ϯϭ ϱθd Ϯϳ ϲϯd Ϯϰ D DĂƌ ϭθ Ϭ ϬϳĞ нϭğ ϯϭϲ ϳĞ нğ ϯϳ ϮϬϭϴ Ɛƚ Ϯ ϰϭ ϮϬ Ɛƚ Ϯϱ ϲϭ ϱͳljƌ,ŝőś ϳϭ Ϭ ϱͳljƌ >Žǁ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϳdž ŵɖůŝĩžŷ DW /dͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -75- Retail: Retail-Specialty

78 X5 Retail Gp.Gdr Reg 's' UNITED KINGDOM yϱ ZĞƚĂŝů 'Ɖ 'Ěƌ ZĞŐ ΖƐΖ &/s ' W^ ϰ dž Ϯϱ ϬϬ ϮϬ ϬϬ ϭϱ ϬϬ Source: Corporate Website ϭϯ ϭϭ ϴ ϳ >KE KE džđś h^θϳ ϮϬϱϰ нϳ ϰϱ ϲϲϯ ϴϴ ϴϴ W^ ZĂŶŬ tśžůğɛăůğͳ&žžě DŬƚ ĂƉ Ψ ϴϰ ^ĂůĞƐ Ψϭϴ Ϭϯ džϱ ƌƶzh^^/ E & Z d/ke ^ŚĂƌĞƐ ϮϳϮD &ůžăƚ ϳϯD *All figures have been converted to USD in Datagraph. Trends are smoother in local currency yϱ Z d /> 'ZKhW E s /^ Zh^^/ E & Z d/keͳ ^ &KK Z d /> Z KDW Ez d, KDW Ez /^ E' ' /E d, s >KWD Ed E KW Z d/ke K& 'ZK Zz Z d /> ^dkz ^ d, KDW Ez KW Z d ^ ^ s Z > Z d /> &KZD d^ d,, /E K& WZKy/D/dz ^dkz ^ he Z d, Wz d ZK,< Z E d, ^hw ZD Z< d, /E he Z d, W Z <Z ^dk< Z E d,,zw ZD Z< d, /E he Z d, < Zh^ > Z E E ywz ^^ KEs E/ E ^dkz ^ he Z s Z/Kh^ Z E ^ d, KDW Ez KW Z d ^ WWZKy/D d >z ϱ ϰθϯ KDW EzͲKW Z d ^dkz ^ /d^ ^dkz ^ /E >h ^ WWZKy/D d >z ϰ ϳϴ Wz d ZK,< WZKy/D/dz ^dkz ^ ϰϭϯ W Z <Z ^dk< ^hw ZD Z< d^ ϴϮ < Zh^ >,zw ZD Z< d^ E ϮϬ ywz ^^ KEs E/ E ^dkz ^ d, KDW Ez KW Z d ^ /^dz/ hd/ke Ed Z^ E ϭ ϰ KDW EzͲKtE dzh <^ ZK^^ d, Zh^^/ E & Z d/ke d, KDW EzΖ^ ^h ^/ / Z/ ^ /E >h 'ZK ^W <d KKK >W 'Zh Z d /> WZKW Zd/ ^ >d yϱ E s/,/dk^d K <KW z< ͲDK^ Kt E yϱ &/E E KKK DKE' Kd, Z^ > ^^ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ Ͳϴ ϲ Ϭ ϲϰ ϭ ϬϬ ϰ Ϭϱ ͲϬ ϰθ ϰ ϯ ϯ ϭϯ Ϯ ϴϲ ϱ Ϯ ϮϴйŸ Ϯ ͲϱϴйŸ W^ h^ ^, &>Kt ^,Z h^ ϭ ϱϳ Ϯ Ϯ ϯϭ ϭϭ Ϯ Ϯϱ ϭϭ ϲ ϳ ϱϲ ϳ ϰϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯϭй Ͳй ϯй ϯй ϯй Ͳϭй ϯй ϯй Ϯй ϯй Ͳ Ϯϭй ϭϰ ^ƚăďŝůŝƚljͿ й ͲϴϮй ϭ й Ͳ ϭ ϭ ϭ й Ͳ ϰ ϰϳ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' ϱ Ϯϯй Ϯ Ϯй Ͳϯ ϱϯй KDW Z d/e' ^ > ^ D/>Ϳ h^ ϴ ϲθϱ ϭϯ ϭϭ< ϭϰ< ϭϲ< ϭϲ< ϭϭ< ϭϭ< < /Es d K ϭϭdž ϳϭ DĂƌ DĂƌ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ Ϯϴ DĂLJ Ϭϱ DĂLJ ϭϭ d й ϭϯ ϴ ϲ ϲϯ ϱϳ ϱ ϱϳ ϱθ ϲϳ ϲ d y Z d й Ϯϭй й ϰϰ ϰθϳ ϭ ϯ ϯϯ ϰϭϯ ϰϭϭ ϰϭϭ <>K' Ϭ ϴ Ϭ ϭ ϭ Ϭ ϴ ϭ ϭ ϭ Ϭ ϭ ϯ ϭ Ϯ ϭ ϰ Z Θ < s > ϭ Ϭdž Ζϭϲ ϯ ϲ Ϯ Ͳ Ͳϳ Ͳϱ ϳ /s h^ EŽŶĞ /s 'Z Zd ϳϱ ϴϮ ϴϲ ϴϯ ϴϯ ϴϲ ϴϴ ϴϴ d Ϭ ϰϱ ϳ ϬϬͿ >W, Ϭ Ϭ ϭϯͿ ϴϱ ϯ ϰ ϭ ϭ ϯ ϭ ϭϰθ ϭϯϳ ϮϬϭϲ DW>Kz ^ ϲ ϭϯθ ϯϯйͿ ϲ ϲ Ϯϭ ϲ ϬϬ ϱ W^ ƵĞ ŝŷ ϭ ĂLJƐ ĞͿ K, Ͳϭй D'Dd ŽǁŶƐ ϰϲ н Growth Drivers X5 is emerging as the fastest-growing player in the Russian food retail market with a market share of 8% in 2016, compared with 6.3% in revenue grew 25.5% y/y, driven by a 5.4% gain in like-forlike (LFL) sales and a 27.4% rise in selling space. Local Code: UK:FIVE Bloomberg Symbol: FIVE:LI ISIN: US98387E2054 нϳ ϴ нϭй Ͳй ϯ ϳϱ O Neil Methodology The stock broke below its 50-DMA after reporting Q4 results but has regained the support level. We recommend adding to positions here as the stock has strong fundamentals. The stock s RS Rating and Up Down volume ratio dipped over the last two weeks, currently standing at 75 and 1.0, respectively. Its A/D Rating stands at B. The Company has a strong EPS Rank of 92. h^ нϯ ϲϰ ϰ Ϯϱ Company Overview The Company mainly operates through Pyaterochka brand (proximity stores), Perekrestok brand (supermarket), Karusel brand (hypermarket), and Express convenience stores (plans to sell Perekrestok Express brand in Moscow). The Company announced an agreement in December with O KEY to acquire the supermarkets business currently operating under the O KEY brand. X5 has 12,121 stores as of Q4 2017, including 11,225 Pyaterochka, 638 Perekrestok, 93 Karusel, and 165 Express stores. Q revenue by segment: Pyaterochka, 77%; Perekrestok, 15%; Karusel, 7%; Express, 1%. ϯϲ Ϯϱ ϰ ϳϱ X5 Retail Group (FIVE.GB) is a food retail company engaged in the development and operation of grocery retail stores. The Company aims to grow through aggressive store expansion. Ϭ Strong RS line with stock breaking out to new highs нϲ нϲϭй ϭϱ ͲϮ ϯ Ϯϱ ϯ ϬϬ Ϯ ϳϱ Ͳϯ Ͳй Ͳϲϭй ϭϯ ϭϭ Ϯ Ϯ Ϯϱ Ͳϱ Ϯ ϬϬ ϴ ϭ ϳϱ ϳ ϭ ϲ ϭ ϮϬ ϭ ϰ ϴ ϰ ϰ Increasing funds ϭ ϬϬ ϰ Ϭ ϯ ϲ ϯd ϮD ϭ ϱd ϭd ͲϮй Ϭ< Ϯ&/E E / >^ ^ĞƉ ϭϯ ĞĐ ϭϯ ϱ W^ h^ Ϳ Ϭ ϭθ Ͳϭ ϬϮ й W^ й, E' нϯ<й ͲϯϮ ϲ^ > ^ D/> h^ Ϳ ϯ ϲϱ ϭ ϰ ϯϳϯ ϳ й DĂƌ Ϯ ϰϰ :ƵŶ Ϭ Ϭϴ ^ĞƉ Ϯ ϲϲ ĞĐ Ϯ ϬϬ ϭ Ϭϰ ϭ ϳϮ ϭ Ϯϳ Ϭ ϲ ϭ Ϭϱ ϭ Ϭϭ Ϭ ϯ Ϭ ϭ ϭϭ ϭ ϴϯ ^ĞƉ ϭϲ ϭ ϲϭ ĞĐ ϭϲ Ϭ ϱθ DĂƌ Ϯ ϭθ :ƵŶ Ϭ ϲϯğ ^ĞƉ Ϭ Ğ ĞĐ Ϭ ϱϯğ нϭϰ нϭϭ нϭ<й нϯ Ͳϱ нϯ<й ͲϱϮй Ͳϲ нϭй Ͳϰϭй ͲϮ Ͳϯ н нθϭй нϳϯй нй н ͲϲĞ ͲϲϯйĞ ͲĞ ϰ Ϭ ϯ ϭϯθ ϲ Ͳ ϯ ϴϯϲ ϭ нϰй ϰ ϲ Ϭ н ϰ Ϯ ϴ нϭй ϰ ϱϲθ ϴ нϯ<й ϯ ϴϱϲ ϰ нϭй ϯ Ϭ ϱ Ͳй ϯ ϭϲϭ Ϯ ͲϮϯй ϯ ϱθϳ ϲ ͲϮϭй Ϯ ϴ Ϭ Ͳй ϯ ϭ ϴ нϰй ϯ ϰϲϰ ϭ нϭ ϯ ϯ ϯ нϭ ϰ Ϭϲϲ Ϭ нϯ ϰ ϴ ϭ нϱϯй ϱ ϮϬϭ ϴ нϱ ϱ ϱϯ ϴĞ нйğ ϱ ϱϲθ ϭğ нϯğ ϲ ϭ ϲğ нϯθйğ нϲϭϱ ϴй ϮϬϳ Ͳ Ϯй Ϯϳϭ Ͳϲϱ ϯй Ϯϳϴ Ϯϱ ϯϭϭ ϭ Ͳϱϴ ϯϳϰ ϱϯd ϱϯd ϱϯd ϱϰd D D ϰθd ϱϯd ϭϲϰ ϭ ϭ ϭϰϭ ϴ ϭϲϲ ϭ ϮϬϴ Ͳϯϭ Ϯϭϭ ϳ^, Z ^, > z &he ^ ϯϲd ϯϲd ϯϲd ϰϭd ϰϭd ϰϭd D ϰϳd D ϰϲd W^ й ^hzwz/^ ϯ&he ^ ϲ Π ϮϬ t/>>/ D KΖE /> н K /E ϱ ϮϬ Ɛƚ ϭϲ Ϭ ϱͳljƌ,ŝőś ϴ Ϭ ϱͳljƌ >Žǁ Ϯ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϯdž ϰ ϰϳd yϱ ZĞƚĂŝů 'Ɖ 'Ěƌ ZĞŐ ΖƐΖ &/s ' Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ DĂLJ ϭϭ ϮϬ X5 plans to open nearly 2,500 stores in 2018, above its previous guidance of 2,000 stores. According to management, the majority of openings will be made outside of Moscow. The Company s net additional selling space reached 1.2M square meters in 2017, most of which was attributable to organic growth. X5 has maintained strong LFL traffic growth of 3% in 2017, which is the highest level recorded since Perekrestok s LFL traffic was positive for eight quarters in a row and was the highest among all X5 s formats. The Company added a total of 795 new stores in Q4 2017, compared with 613 in 2016, which led to additional net selling space of 335,200 square meters in As of December 2017, the number of stores grew 32% y/y to 12,121. Looking Forward The Company expects to be cash positive toward the end of 2018 and for full-year Next Catalyst: X5 will report its Q4 and 2017 financial results on March

79 UNITED KINGDOM yϱ ZĞƚĂŝů 'Ɖ 'Ěƌ ZĞŐ ΖƐΖ &/s ' W^ ϱ dž ϬϬ ϮϬ ϬϬ ϭθ ϬϬ ϭϲ ϬϬ ϭϰ ϬϬ ϭϯ ϬϬ ϬϬ ϮϬ >KE KE džđś h^θϳ ϮϬϱϰ нϳ ϰϱ ϲϲϯ ϴϴ ϴϴ W^ ZĂŶŬ Ϯ tśžůğɛăůğͳ&žžě X5 Retail Gp.Gdr Reg 's' DŬƚ ĂƉ Ψ ^ĂůĞƐ ΨϮϬ ϴ džϱ ƌƶzh^^/ E & Z d/ke ^ŚĂƌĞƐ ϮϳϮD &ůžăƚ ϳϭD K, ͲϮ D'Dd ŽǁŶƐ yϱ Z d /> 'ZKhW E s /^ Zh^^/ E & Z d/keͳ ^ &KK Z d /> Z KDW Ez d, KDW Ez /^ E' ' /E d, s >KWD Ed E KW Z d/ke K& 'ZK Zz Z d /> ^dkz ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ͳϲ Ϯϱ Ϭ ϰϱ Ϭ ϳϰ ϯ ϭϯ ͲϬ ϯϲ ϯ ϱθ Ϯ ϱθ Ϯ ϲϯ ϱ W^ hz ϭ Ͳϲź Ϯ йź ^, &>Kt ^,Z hz ϭ ϭ ϱϯ ϭ ϳϮ ϳ ϳϴ ϭ ϴ ϰ ϲ Ϯϱ ϲ ϴϱ ϭϯ ϱϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳй ϯй ϯй ϯй Ͳϭй ϯй ϯй Ϯй ϯй Ͳ ϯϯй ^ƚăďŝůŝƚljͿ Ϯ ͲϴϮй ϭ й Ͳ ϭ ϭ ϭ й Ͳ ϰϰй ϰϰ ^ƚăďŝůŝƚljͿ й ϲ Ϯй ϯϯй Ϯ ϭϯй Ͳϯй Ͳй ϭ ϱ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϲ ϰ ϲ ϯϲϯ ϴ ϴ ϭϭ< ϭϯ< ϭϯ< ϴ ϳϯϭ < ϭϲ< /Es d K ϭϭ ϰdž ϳϮ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϭϯ ϴ ϱ ϲϱ ϱϲ ϲϯ ϲϯ ϱ ϱϲ ϱϯ d y Z d й Ϯϭй й ϱϰϲ ϱ ϱϰϲ ϱϯϲ ϰϱϰ ϰϭϱ ϯϰ ϰϯϯ ϰϱ <>K' Ϭ ϭ Ϭ ϭ ϭ ϭ ϭ ϭ ϯ ϭ ϭ ϭ Ϭ ϭ Ϭ Ϭ ϴ Z Θ < s > Ϭ ϯdž Ζϭϲ ϭ Ϯϭ ϯϯ ϯ ϭϯ ϭθ Ͳϭϰ /s hz EŽŶĞ /s 'Z Zd ϳϯ ϴϯ ϲϲ ϰϭ ϳϴ ϴϱ ϳϭ ϱθ ϰϲ d Ϭ ϲϯ Ϯ ϬϬͿ >W, Ϭ Ϭϭ Ϭ ϬϭͿ ϰϳ Ϯϳ ϯϭ Ϯϳ ϯ ϰ ϯϲ ϱϱ ϮϬϭϲ DW>Kz ^ ϲ ϭϯθ ϯϯйͿ ϭ Ϭ R E M O V E D ϰϲ ϴ ϰϭ ϳ ϳ ϮϬ ϲ ϯϳ ϰϰ h^ ͲϮ ϴϲ Ͳϳ ϭ ϲ ϬϬ ϱ ϮϬ ϰ ϰ ϰϭ ϰϲ н ϯ ϯ ϰϭ ϯ ϬϬ ϭϱ Ϯ Ϯ ϰϭ Ϯ ϮϬ ϭϯ ϭϭ Ϯ ϬϬ ϭ ϭ ϴ ϭ ϰϭ ϳ ϭ ϮϬ ϲ ϭ ϬϬ Ϭ Ϯ ϱ ϰ ϲ Ϭ ϴϰ ϰ Ϯ Ϭ ϳϲ ϯ ϴ ϯ ϲd ϯd ϮD нθϭй ϭd Ϭ< ĞĐ ϭϯ DĂƌ &/E E / >^ ͲϬ ϳϴ ϭ W^ hzͿ ͲϯϮ нϭϱ W^ й, E' ϯ ϯϭϲ ϳ ϯ ϭϲ ϲ ^ > ^ D/> hzͿ W^ й ^hzwz/^ ϭϰϳ &he ^ ϭϱ ϯϱ ϱϳϯ ϰϰ ϯϲd ^, Z ^, > z &he ^ :ƵŶ Ϭ Ϭϳ нϭϭ ϴ Ͳ ^ĞƉ ϭ ϳ нϭ<й Ϯ ϴϯϯ ϳ Ͳϭй ĞĐ ϭ ϰϱ нϯθ ϯ ϱ ϱ нϭй Ϭ ϳϱ Ͳϲϭй Ϯ ϳϲ ϲ Ͳ ϭ нϯ<й ϯ ϯϯϲ ϲ нϯ<й ϭ Ϭϭ Ͳϰ ϯ ϬϱϮ ϳ нθй ϭϱϲ ϰϭd ϳ ϰϭd ϯ ϯd ϭϲϯ D ϭθϲ ϰϲd ϮϬϮ D Ϭ ϱϳ Ͳϲϭй Ϯ ϭ ϭ ͲϮ Ͳϯϭ ϮϬϲ ϰϲd Ϭ ϳ нϯ Ϯ ϭθ ϳ ͲϮй нϲϭϱ ϴй ϮϬϬ ϱϯd Ϭ ϭ ͲϮϴй ϯ Ϯ Ͳϯй Ϯ ϱϯd Ϭ ϴϯ Ͳϭϴй Ϯ ϲϳϳ ϱ ͲϭϮй Ͳ Ϯй ϰ ϱϯd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϯ ͲϯϮй Ϯ Ϭ ϯ нϭ Ͳϲϱ ϯй Ϯ ϱϰd Ϭ ϴ нϭй ϯ Ϭϯ ϴ нϰй ϭ ϲϱ нθϭй ϯ ϱϰϱ ϴ нϭ ^ĞƉ ϭϲ ϭ ϰϯ нϳϯй ϯ ϲϭθ Ϭ нϯ Ϯϴϰ D Ϭ D ϯϯϯ ϰd ĞĐ ϭϲ Ϭ ϱϱ нϰϭй ϰ ϱϲθ ϱ нϱθй Ͳϱϴ ϯϳϲ ϱϯd DĂƌ Ϯ Ϭϰ нθй ϰ ϴϲϯ ϭ нϲ :ƵŶ Ϯ Ϯϱ нϯ ϰ ϳϰϱ ϯ нй ^ĞƉ ϭ ϱθ нϭ ϰ ϲϯ нϯ ĞĐ Ϭ ϰϭğ ͲϮĞ ϱ Ϯ ϲğ нğ ϰϲd ϰϱϯ ϰd ϯ ϱϭd ϰθϳ D DĂƌ ϭθ Ϭ ϱϳğ ͲϳϮйĞ ϱ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ ϱͳljƌ,ŝőś ϴ Ϭ ϱͳljƌ >Žǁ Ϯ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ Ϯdž yϱ ZĞƚĂŝů 'Ɖ 'Ěƌ ZĞŐ ΖƐΖ &/s ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -77- Retail: Wholesale-Food

80 Teleperformance FRANCE dğůğɖğƌĩžƌŵăŷđğ ZK&Z &Z W^ ϭϲ dž ϲϯ ϴ ϳ ϲ ϴϴ ϲ Ϯϱ ϱ ϲϯ ϱ ϬϬ ϰ W Z/^Ͳ^ & džđś &ZϬϬϬϬϬϱ нϯϯ ϭ ϱϯ ϴϯ ϱ ϬϬ W^ ZĂŶŬ ϯ ƚğůğɖğƌĩžƌŵăŷđğ ĐŽŵ ϯ ϯ Ϭϴ Ϯ ϴϴ DŬƚ ĂƉ Φϰ Ϯ ^ĂůĞƐ Φϯ WĂƌŝƐ &Z E /ŶĐ ϴ ^ŚĂƌĞƐ ϱϳd &ůžăƚ ϱϰd Minimal overhead supply D'Dd ŽǁŶƐ d > W Z&KZD E ^ &KZD Z>z d > W Z&KZD E ^ /^ &Z E Ͳ ^ d > D Z< d/e' E d > Ͳ^ Zs/ ^ WZKs/ Z d, KDW Ez ^W / >/ ^ /E d, h^dkd Z Z > d/ke D E ' D Ed KEd d Ed Z^ ƐƟŵĂƚĞ ϮϬϭϲ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ ϭ ϭ ϳϳ Ϯ Ϭ ϭ ϱϲ ϭ Ϯϳ ϭ ϰθ Ϯ Ϯ Ϯϳ Ϯ ϲϯ ϯ ϯ ϱź W^ Φ ϰ ϴйź ^, &>Kt ^,Z Φ ϯ ϯ Ϯϴ Ϯ ϯ ϱϭ ϯ ϭ ϳϲ ϯ ϯ ϰ ϯϲ ZE/E'^ 'Z Zd ^ > ^ 'Z Zd ϴй ϭ ϭ ϴй ϴй ϴй ^ƚăďŝůŝƚljͿ й ϭϯй ϭϯй ϭϯй ϴй ϭ ϭ Ϯ ^ƚăďŝůŝƚljͿ ϯ ϭ ϭ ϭϯй ϰй ϭϭй ϯй ϭ ϰй й KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ Φ ϭ ϱ ϭ ϱϰ ϭ ϳϴϱ ϭ ϴϰϴ Ϯ Ϭϱ Ϯ ϭ Ϯ ϳ Ϯ ϰϯϯ Ϯ ϳϱϴ /Es d K ϲ ϰ<dž ϭθͳ^ğɖ ϮϱͲ^ĞƉ ϮͲKĐƚ ͲKĐƚ ϭϲͳkđƚ ϮϯͲKĐƚ ͲKĐƚ ϲͳežǀ ͲEŽǀ d й Ͳϭϰ ϭй ϭ Ϯ ϲθ ϲθ ϳϭ ϲϲ ϳϭ ϲ ϲ ϲθ ϳϮ d y Z d Ͳϭϰ ϯ ϯϯй ϯ Ϯ ϴ ϭ ϭϯϳ ϭ ϭϯϱ ϭϭϲ ϭϯϭ <>K' Ͳϭϰ ϭ Ϭ Ϭ ϭ Ϭ Ϭ ϭ ϭ ϭ ϯ ϭ ϲ ϭ ϱ ϭ ϳ Z Θ < s > Ϯ ϱθdž Ζϭϰ Ͳ Ͳϳ Ͳϳ ͲϮϱ ͲϮϯ Ͳϭϱ Ͳϴ Ͳϰ ϭϲ /s Φ Ϭ Ϯ ϭ ϯйͿ /s 'Z ZdнϮ ϭϯͿ ϳϰ ϴϭ ϳ ϳϰ ϳϳ ϳ ϳϴ ϳϳ ϴϯ d Ϭ ϳϯ ϳϱ ϬϬͿ >W, Ϭ ϬϮ ͲϬ ϬϯͿ ϳϱ ϳϳ ϳϲ ϴϭ ϴϯ ϴϴ ϴϱ DW>Kz ^ Ϭ ϱϳ йͿ ϯ ϳϱ Source: Corporate Website Žŵŵů ^ǀĐƐͲKƵƚƐŽƵƌĐŝŶŐ 2+ ϭ ϭ ϭϯϭ ϭ Ϭ Great sales growth rates ϳϰ ϱ ϰϲ Ϯ Company Overview Teleperformance s operating segments are core services, which includes customer care, technical support, and customer acquisition, and specialized services, which includes online interpreting solutions, visa application management services, and debt collection programs. It operates a network of more than 163,000 computerized workstations across 74 countries serving 160 markets. It operates in a highly fragmented market and has about 7% global market share. Q revenue by segment: core services, 85%; specialized services, 15%. hz нϯ ϯ нϰ Ϭ Ϯ ϲϯ Teleperformance is the largest provider of outsourced omnichannel customer experience management systems globally, in terms of revenues. The Company is set to benefit from geographical expansion. ϭ High U/D volume Good EPS rank Ϯ ϴϮ ϭ ϴϴ ϭ ϲϯ ϭ ϭ 40-Week MA ϭ R/S line at new high 10-Week MA ϭ Ϭϲ Ϭ ϰ ϭϱ Ϭ ϴϭ Ϭ ϳϱ Ϭ ϲ ϭϯ ϭϭ Ϭ ϲϯ Ϭ ϱϲ Ϭ ϴ Ϭ ϰϰ ϳ Increasing sponsorship Solid EPS and revenue growth ϭd ϳϲ ϲ< Ϭ< н Ϭ< ^ W &/E E / >^ Ϭ ϱϳ W^ ΦͿ Ͳϭϭй W^ й, E' ϭ Ϭϳϱ ϯ ^ > ^ D/> ΦͿ D Z ϭϭ нй W^ й ^hzwz/^ ϮϬϲ &he ^ Ϯϭϰ Ϯ ϴϴϱ ϭϱd ^, Z ^, > z &he ^ :he ϭϭ Ϭ ^ W ϭϭ Ͳ ϭ Ϭϲϭ ϴ ϭϭ ϭ Ϭϰ D Z ϭϯ нθϯй ϭ Ϭϲϰ ϯ нθй :he ϭϯ Ϭ ϴϮ ^ W ϭϯ нϯ ϭ ϭ Ͳϭй ϭϯ ϭ ϰθ D Z нй ϭ Ϭ Ϯ н :he Ϭ ϳ ^ W нϭθй ϭ ϲ Ϯ нϭ ϭ ϯϭ D Z ϭϰ Ͳϭϭй ϭ Ϯϯϲ ϴ н :he ϭϰ ϭ ϬϬ ^ W ϭϰ нϯй ϭ ϱ Ϭ нϭй ϭϰ ϭ ϲϯ D Z ϭϱ нй ϭ ϱ Ϭ нϰй :he ϭϱ ϭ ϰϱ нϰ ϭ ϲϱθ Ϭ нй ^ W ϭϱ ϭϱ ϴϱϭ ϬĞ ϬĞ W Ϯϯ Ɛƚ нϯϯй ϱͳljƌ,ŝőś Ϯϱ ϱͳljƌ >Žǁ ϴ ǀƐ /ŶĚ ǀŐ Ϭ ϱdž O Neil Methodology After touching highs on October 4, the stock pulled back to its 50-DMA, a strong support level. The stock has a robust technical profile reflected in its RS Rating of 74, A/D Rating of D+, and Up/Down volume ratio of 1.3. The Company reported consistent revenue and EPS growth, resulting in a strong EPS Rank of 91. Consensus estimates call for EPS growth of 57% and 11% in 2017 and 2018, respectively. In Q3 2017, revenues grew 11% y/y to 1.014B, driven by 2.8% y/y growth in the core services segment. Revenues from the specialized services segment grew 111.2% y/y, mainly due to inorganic growth. Teleperformance partnered with Scandic Hotels, the largest Nordic hotel operator, to add to its strong and expanding list of travel customers. In June, the Company expanded its operations in Malaysia by opening a new site in Penang that serves as a premium multilingual solutions hub and offers services in 25 languages from more than 500 workstations. Teleperformance is focusing on its fast-growing specialized services segment and expects it contribute 20% of revenues by The Company successfully transformed itself into a customer services company that is welldiversified by verticals. Five years ago, telco/paytv accounted for 50% of revenues, but today it accounts for less than 30% of the mix. Growth Drivers In Q3 2017, the Company acquired the French startup Wibilong, which provides digital businesses with software as a service (SaaS) platforms. The acquisition will enable Teleperformance to enhance its digital and omnichannel offerings and reinforce its positioning as the customer experience partner of choice for major retail and consumer goods brands. Looking Forward Teleperformance reiterated like-for-like revenue growth of more than 7% in The Company also confirmed its full-year EBITA margin before non-recurring items target of more than 13% and expects to continue generating high free cash flow. The Company updated its five-year financial objectives: EBITA before non-recurring items of more than 850M by 2022 on revenues of more than 6B, driven by organic and acquisition-led growth. Next catalyst: The Company is expected to announce 2017 results on February 28, Local Code: FR:RCF Bloomberg Symbol: RCF:FP ISIN: FR Ϯϯ D Ϯ D ϮϬϳ ϭθd Π t/>>/ D KΖE /> н K /E -78- ϱ ϭθd ϱ D ϯ D ϮϬϬ ϭθd ϴ ϭθd Ϯϰ ϭθd ϱ ϭθd ϯϲϯ D ϯϳϰ ϮϬD ϮϭD ϰϭϱ ϮϭD ϰϲϱ D ϰϭ ϮϭD ϱϯϳ ϮϭD ϱϰϳ D ϱϱϲ D dğůğɖğƌĩžƌŵăŷđğ ZK&Z &ZͿ tğğŭůlj ĂƐ ŽĨ &Z/ EŽǀĞŵďĞƌ Ĩ &Z/ EŽǀĞŵďĞƌ

81 FRANCE dğůğɖğƌĩžƌŵăŷđğ ZK&Z &Z W^ ϮϬ dž ϬϬ ϭϯ ϬϬ ϭϭ ϬϬ ϴ ϳ ϲ ϲ ϬϬ ϱ ϱ ϬϬ нϯϯ ϭ ϱϯ ϴϯ ϱ ϬϬ W^ ZĂŶŬ ϯ W Z/^Ͳ^ & džđś &ZϬϬϬϬϬϱ ƚğůğɖğƌĩžƌŵăŷđğ ĐŽŵ Žŵŵů ^ǀĐƐͲKƵƚƐŽƵƌĐŝŶŐ Teleperformance DŬƚ ĂƉ Φϲ ϳ ^ĂůĞƐ Φϰ Ϭϰ WĂƌŝƐ &Z E /ŶĐ ϴ ^ŚĂƌĞƐ ϱθd &ůžăƚ ϱθd W^ ƵĞ ŝŷ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϯ Ϭ Ϭ d > W Z&KZD E ^ &KZD Z>z d > W Z&KZD E ^ /^ &Z E Ͳ ^ d > D Z< d/e' E d > Ͳ^ Zs/ ^ WZKs/ Z d, KDW Ez ^W / >/ ^ /E d, h^dkd Z Z > d/ke D E ' D Ed KEd d Ed Z^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϯ Ϭ ϭ ϱϲ ϭ Ϯϳ ϭ ϰθ Ϯ Ϯ Ϯϳ Ϯ ϲϯ ϯ ϯ ϳϰ W^ hz ϱ ϴϳ ϱź ϲ ϱϯ ϭϭйÿ ^, &>Kt ^,Z hz Ϯ ϯ ϱϭ ϯ ϭ ϳϲ ϯ ϯ ϰ ϯϲ ϱ ϱ ϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϴй ϴй ϴй ϴй ϴй Ͳ Ϯϭй ϰ ^ƚăďŝůŝƚljͿ ϭ ϭϯй ϴй ϭ ϭ ϭϯй ϭϯй Ͳ ϭ ϲ ^ƚăďŝůŝƚljͿ й ϭϯй ϰй ϭϭй ϯй ϭ ϰй й Ϯϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ ϳϴϱ ϭ ϴϰϴ Ϯ Ϭϱ Ϯ ϭ Ϯ ϳ Ϯ ϰϯϯ Ϯ ϳϱϴ ϯ ϯ ϲϰ /Es d K ϲ ϰ<dž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ϯ Ϯ ϴϴй ϲ ϳϭ ϳϭ ϲϳ ϲϲ d y Z d ϯ Ϯϴй Ϯϴй Ϯϭϭ Ϯ ϯ Ϯϭϰ Ϯϭϭ Ϯϭϰ Ϯϭϱ Ϯϭϭ Ϯϭϭ <>K' Ϭ ϰ Ϭ ϰ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϱ Z Θ < s > ϯ ϲϰdž Ζϭϲ Ͳ ͲϮ Ͳϭϱ Ͳϭϲ Ͳϳ Ͳϭ Ͳ Ͳ /s hz ϭ ϭ ϭйͿ /s 'Z Zdнй Ϳ ϲϳ ϲϱ ϲϯ ϲϯ ϲϭ ϲθ ϲ d Ϭ ϳϰ ϬϬͿ >W, Ϭ Ϭϯ Ϭ ϬϯͿ ϰθ ϰϲ ϯϳ ϯϲ ϰϭ ϯ ϯϳ ϮϬϭϲ DW>Kz ^ ϲ ϳϲϴ ϭͿ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ ϭ Ͳϱ ϬϬ Ϭ ϰ ϰ Ϯϯ ϰ ϬϬ ϯ hz Ͳϰ Ϭϴй ϯ ϬϬ Ϯ Ϯ ϰϲ Ϯ ϭ ϭ ϭ ϭ ϭ ϮϬ ϭ Ϭ ϱ Ϭ ϴϱ Ϭ ϳϱ ϭϱ Ϭ ϲϱ Ϭ Ϭ ϱϱ ϭϯ ϭϭ Ϭ Ϭ ϰϱ ϮD ϭd Ϭ< ϱϳ ϴ< Ϭ< Ͳϰϭй ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ ϭ ϰθ W^ hzͿ W^ й, E' нй ϭ Ϭ Ϯ ^ > ^ D/> hzͿ нϭ DĂƌ W^ й ^hzwz/^ ϭθ Ϯϯϳ &he ^ ϰϭθ ϰϳ D ^, Z ^, > z &he ^ :ƵŶ Ϭ ϳ нϭθй ϭ ϲ Ϯ н ^ĞƉ ϯϯθ ϭθd ϰ D ĞĐ ϭ ϯϭ Ͳϭϭй ϭ Ϯϯϲ ϴ нϭй ϯϱϳ ϮϬD Ϯ ϮϭD ϭ ϬϬ нϯй ϭ ϱ Ϭ нϰй ϴ ϮϭD ϰϯϲ ϮϭD ϭ ϲϯ нй ϭ ϱ Ϭ нй ϰϲϯ ϮϭD ϳ ϮϭD ϭ ϰϱ нϰ ϭ ϲϱθ Ϭ нϯϯй ϱϯϭ D ϱ D ϱϭ D ϱϲ D ϭ ϱϯ н ϭ ϲθ Ϭ нϯй ^ĞƉ ϭϲ ϲϱϰ D ϳ ϮϱD ĞĐ ϭϲ Ϯ нθй ϭ Ϭ нй DĂƌ ϳϱϳ D ϳϲϴ ϮϱD :ƵŶ Ϯ Ϭϭ нϯϯй Ϯ Ϭϴϭ Ϭ нϯϯй ^ĞƉ ĞĐ Ϯ ϮϬ Ɛƚ ϮϬ ϬϬ ϭ Ϭ ϬĞ ϭ ϯ ϬĞ ϮϬϭϴ Ɛƚ ϭθ Ϭϭ ϱͳljƌ,ŝőś Ϯϴ Ϭ ϱͳljƌ >Žǁ ϭϭ Ϭ ϮϴϮ ϭθd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϯ Ϭϱ нй ϭ ϳϰϬ Ϭ нϭ ϳϳϱ ϮϱD ϳϲϯ ϮϱD ϴϳϱ ϮϱD ǀƐ /ŶĚ ǀŐ ϭ Ϭdž dğůğɖğƌĩžƌŵăŷđğ ZK&Z &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -79- Capital Equipment: Comml Svcs-Outsourcing

82 Rentokil Initial UNITED KINGDOM Source: Corporate Website Rentokil Initial is a global leader in the commercial pest and hygiene services control market. The Company continues to grow through meaningful acquisitions in both developed and emerging markets. Company Overview Rentokil Initial is a leading pest control company that also offers hygiene services and work wear. It operates in about 66 countries globally and holds the leading market share in about 47 countries. H revenues by business segment: pest control, 63%; hygiene, 19%; protect and enhance, 18%. H revenues by geography: North America, 38.8%; Europe (excluding the U.K.), 26.5%; U.K. and the rest of the world, 18.3%; Asia, 8.3%; Pacific, 8.1%. O Neil Methodology On October 18, post its Q trading update, the stock broke out of a five-week flat-base and is currently actionable. Rentokil Initial has an EPS Rank of 95, partly owing to consistent revenue and EPS growth over the last few quarters. Its RS Rating of 91, A/D Rating of A-, and Up/Down volume ratio of 1.3 indicate strong price performance and demand for the stock. In Q3 2017, the Company reported a 13.7% y/y increase in revenues. Organic revenue grew 3.7% y/y, driven by growth in pest control and hygiene. Revenues in the pest control segment grew 17.8% y/y. Organic growth was 5.6%, compared with 6.5% in H The hygiene segment s organic revenues grew 2.6%. Emerging markets delivered solid revenue growth of 65.7% y/y. In Q3, Rentokil completed six acquisitions, five in pest control and one in hygiene. The acquisitions contributed 10% to the Company s top line. It has completed 34 acquisitions YTD, primarily in pest control, equivalent to 184M in revenues. No overhead supply Improving ratings, up/down volume at highs 10-Week MA 40-Week MA Rising cash flow/share and P/T margins Clear prior uptrend Rising institutional support Relative strength in clear uptrend and at 52-week highs with good A/D rating Heavy upside volume Break out to highs on 1.6x the average daily volume Adjusted H EPS was 0.32, up 10.9% y/y on a constant currency basis. Growth Drivers The pest control industry is expected to grow at a CAGR of 5% from 2014 to In H1 2017, the Company spent 206.8M on acquisitions, including five acquisitions in the U.S. with combined annualized revenues of 61M, which strengthened its position as the number three player in the key North American market. The Company is increasing its exposure in the North American pest control market through acquisitions. It acquired Atlanta-based Allgood Pest solutions in February, which generates annual revenues of $28M. In June, Rentokil announced the completion of a joint venture with Franz Haniel & Cie that brings together Rentokil s workwear and hygiene businesses in 10 countries, principally Benelux and Central Europe, with Haniel s businesses, which operate under the CWS-boco brand in 16 countries. Looking Forward Management has a strong acquisition pipeline in place during Q and expects to spend a minimum of 50M on acquisitions in H Next Catalyst: H earnings release on March 1, Local Code: UK:RTO Bloomberg Symbol: RTO:LN ISIN: GB00B082RF11-80-

83 UNITED KINGDOM W^ Ϯϯ dž ϯϳ ϳϴ ϰϯ Ϭ Ϯϭ ϳϰ ϮϬ ϬϬ ϭθ ϭϲ ϱϯ ϭϰ ϳϴ ZĞŶƚŽŬŝů /ŶŝƟĂů ZdK ' >KE KE džđś ' ϬϬ ϬϴϮZ&ϭϭ нϰϰ ϭϯϳϲ ϳϰϰϰ W^ ZĂŶŬ ϱ ƌğŷƚžŭŝůͳŝŷŝɵăů ĐŽŵ Žŵŵů ^ǀĐƐͲKƵƚƐŽƵƌĐŝŶŐ DŬƚ ĂƉ άϱ ϰϰ ^ĂůĞƐ άϯ ϰϭ ŶŐůĂŶĚ he/d </E' KD /ŶĐ Ϯϳ Rentokil Initial ^ŚĂƌĞƐ ϭ ϴϯϳ &ůžăƚ ϭ ϴϯϳ W^ ƵĞ ŝŷ Ϯϳ ĂLJƐ ĞͿ K, Ͳй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Z EdK</> /E/d/ > W> /^ KDD Z / > W ^d KEdZK> KDW Ez d, KDW Ez /^ E' ' /E d, WZKs/^/KE K& ZKhd Ͳ ^ ^ Zs/ ^ t,/, WZKd d W KW> E E, E >/s ^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϭ Ϭ Ϭϯ ͲϬ ϬϮ ͲϬ Ϭϱ Ϭ Ϭϯ Ϭ ϬϮ Ϭ Ϭ Ϭ Ϭ ϭϭ W^ hz Ϭ ϭϰ ϯ Ϭ ϭϱ ^, &>Kt ^,Z hz Ϭ Ϭ ϮϬ Ϭ Ϯϯ Ϭ ϮϬ Ϭ Ϯϭ Ϭ ϮϬ Ϭ Ϯϯ Ϭ Ϯϱ Ϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭй Ϯй ͲϮй ϭ Ͳ ϭ ϲϯ ^ƚăďŝůŝƚljͿ ϴй й ϱ Ͳ ϱθй ϳϯ ^ƚăďŝůŝƚljͿ ͲϮй Ͳϭ Ϯй Ͳϭ Ͳй ϰй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯ ϰ Ϯ ϴ Ϯ ϭϭ ϯ Ϭϰϳ Ϯ ϳϰϱ Ϯ ϭϱϯ Ϯ ϯ Ϯ ϳ Ϯ ϱϰϭ /Es d K Ϯϭ ϭdž ϲθ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϳϰй ϰϭθй ϯϱ ϲϰ ϱ ϲϭ ϲϯ ϱ ϱϯ ϱϳ d y Z d Ϯϯй й Ϯ ϰ ϯϳϭ ϰ ϲ ϰ ϱ ϰ ϰ ϰ ϯϱ ϰ ϰ ϯ ϴϳϰ ϰ ϭϰϰ ϰ ϭ <>K' ϭ ϭ Ϭ Ϭ Ϭ Ϭ ϳ Ϭ ϲ Ϭ ϴ Ϭ ϲ Ϭ ϲ Z Θ Ϭ ϭ < s > ϱ Ϯdž Ζϭϲ ͲϮ Ͳ Ͳϲ Ͳϳ ͲϮϯ Ͳϭϴ Ͳϱ ͲϮ ͲϮϭ /s hz Ϭ ϬϰϬ ϭ ϮйͿ /s 'Z Zdнй ϭθͿ ϴϲ ϴϯ ϴϮ ϴϰ ϳϴ ϳϳ ϴϭ ϱθ ϲϯ d Ϭ ϰϭ ϱ ϬϬͿ >W, Ϭ Ϭ Ϭ ϬͿ ϯ ϭ ϭϯϭ ϭ ϭ ϭ ϭ ϭ ϭϰϭ ϮϬϭϲ DW>Kz ^ ϯϯ ϭ ϴйͿ Ϭ Ϭ Ϭ Ϭ ϰ Ϭ ϯ Ϭ Ϭϰ Ϭ Ϯϲ ϬϬ ' y ϭϭ ϰϯ ϱϳ Ͳϭ ϬϬ Ϯ ͲϬ й Ϭ Ϭ ϴ ϲϯ Ͳ ϳ ϯ Ϭ ϭ ϲ ϱϯ ϭ ϱ ϲϱ ϱ ϰ ϳϴ ϭ ϭϯϭ ϭ ϰ ϯϱ Ϭ ϯ ϭ ϯ ϰθ ϯ Ϭϰ Ϯ ϲϭ Ϯ Ϯ ϬϬ ϰϲ ϭ ϴϯ ϭ ϲϱ ϭ ϰθ ϭ ϮϬD Ϯϭ ϴD нй ϴD ϱd ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ Ϭϯ W^ hzͿ нϭϱ W^ й, E' ϭ ϲ ϯ ^ > ^ D/> hzͿ ͲϮϯй Ͳϳ ϴй W^ й ^hzwz/^ ϭϲθ ϴ ϭϲϯ &he ^ Ϯ ϳϳϭ ϱϱϱd ϱϯϭd ^, Z ^, > z &he ^ :ƵŶ ͲϬ Ϭϭ ^ĞƉ ϭ ϯ ĞĐ Ϭ Ϭϯ ϲϯ Ϭ Ͳй ϮϬϲ ϲϱϳd Ϯϭϱ ϱθϳd Ϭ нϭ ϰϭ ϭ Ϭϲϳ Ϭ Ͳй Ϯϯϭ ϲϲϭd ϭ ϳD Ϭ Ϭϱ нϲ ϱϳϱ Ͳϭ Ϯϱϴ ϲϳϲd ϱ ϲϱϰd Ϭ Ϭϰ Ͳϲ ϲ ϲ Ͳй ϯϯ ϲθϳd ϯϱϭ ϯd ϯϳϰ ϳϱϭD ϯϭ ϳϯϭD Ϭ Ϭϰ ϭ ϭθϳ ϴ нϯй ^ĞƉ ϭϲ ϰ ϴϮϱD ϱ ϴϯϱD ĞĐ ϭϲ Ϭ Ϭϳ нϰ ϭ ϯ ϲ нй DĂƌ ϱϯϱ ϴϰϭD ϱ ϴϰϳD :ƵŶ Ϭ ϯϲ н ϭ ϰϭϰ нϭθй ^ĞƉ ĞĐ Ϭ ϬϳĞ Ğ ϭ ϱ ϳĞ ͲĞ ϮϬ Ɛƚ ϮϬϭϴ Ɛƚ ϱͳljƌ,ŝőś ϱθ Ϭ ϱͳljƌ >Žǁ ϲ Ϭ ϰ ϱϯϯd ϭ ϱθd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ Ϭϱ ϭ ϲ Ϯ нϭй ϱϰϲ ϴϲϮD ϱϳϰ ϴϳϳ ϴ ϴϯϱ ǀƐ /ŶĚ ǀŐ Ϭ ϯdž ZĞŶƚŽŬŝů /ŶŝƟĂů ZdK ' Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -81- Capital Equipment: Comml Svcs-Outsourcing

84 Komax SWITZERLAND Excellent EPS Rank <ŽŵĂdž <KDE, &K ϮϬ dž ^t/^^ ^ džđś,ϭϭϯϭϱϰ нϰϭ ϰϭ ϰϱϱ Ϭϰ ϱϱ W^ ZĂŶŬ ϱ DĂĐŚŝŶĞƌLJͲ'ĞŶ /ŶĚƵƐƚƌŝĂů ŬŽŵĂdžŐƌŽƵƉ ĐŽŵ DŬƚ ĂƉ,&Ϯϱ ϭϲd ^ĂůĞƐ,&ϯϲϴ ϴϳD ŝğƌŝŭžŷ ^t/d Z> E ^ŚĂƌĞƐ ϰd &ůžăƚ ϰd W^ ƵĞ ϯ ϮϬĞ K, ͲϮй D'Dd ŽǁŶƐ <KD y,k> /E' ' /^ ^t/d Z> E Ͳ ^,K> /E' KDW Ez E' ' /E d, D,/E Zz ^ dkz d, KDW Ez ^W / >/ ^ /E D, dzke/ ^ > dzke/ ^ E ^K&dt Z d,ek>k'z E KE EdZ d ^ KE s >KW/E' WZK h /E' E D Z< d/e' W/d > 'KK ^ E ^ Zs/ ^ &KZ t/z Ͳ WZK ^^/E' W,KdKsK>d / ^ E D / > d,ek>k'z WW>/ d/ke^ EEh > Ͳ E ϮϬϬϳ ϮϬϬϴ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϴϲ ϲ Ͳϱ ϳ ϱ ϯϭ ϭϭ ϲθ Ϯ ϴϭ ϳ ϯϯ ϳ ϲϰ ϴ ϬϬ W^,& ϭϯ ϱϰ ϱź ϲϳ ź ^, &>Kt ^,Z,& ϳϲ Ͳϱ ϳϳ ϲϲ ϭϰ Ϯϯ ϱ ϴϯ ϰϰ ϭϭ ϲϲ ϭϯ ϬϮ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϯй ͲϭϮй й ϰй й й ϭϭй Ϯ ϭϯ ^ƚăďŝůŝƚljͿ ϰй ϭ ϭ Ͳ ϭ ϰй ϭ ϭ ϭ Ͳϭϲ ϰй ^ƚăďŝůŝƚljͿ ϭй ͲϮй Ͳϯ ϲϯй ͲϮϯй й ϭϯй ϭй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ,& Ϯ ϮϬϴ ϯϯ ϯ Ϯϴϳ ϯ ϯϲϯ ϯϲϳ /Es d K Ϯ ϯdž ϮϬ ^ĞƉ Ϯϯ ^ĞƉ KĐƚ Ϭϳ KĐƚ ϭϰ KĐƚ Ϯϭ KĐƚ Ϯϴ EŽǀ Ϭϰ EŽǀ ϭϭ EŽǀ ϭϲ d й Ͳϭϱ ϭ ϴй ϳ ϳϳ ϴϮ ϳ ϴϭ ϳϳ ϳϳ ϳϰ d y Z d Ͳϭϱ й ϭθй ϳ ϳ ϳ ϳ ϳ ϲ ϲ ϱ ϱ <>K' Ͳϭϱ Ϯ Ϭ Ϯ Ϭ ϭ ϴ ϭ ϴ ϭ ϳ ϭ ϰ ϭ ϭ ϭ ϯ ϭ ϰ Z Θ ϳ ϯ < s > ϯ ϭθdž Ζϭϱ ϯϲ ϯϭ Ϯϴ ϳ ϯϱ /s,& ϲ ϬϬ Ϯ ϰйͿ /s 'Z Zdнϴй Ϳ ϴϰ ϴϰ ϴϱ ϴϰ ϴϭ ϴϭ ϳϲ ϴϯ ϴϰ d Ϭ ϴϳ ϳϲ ϬϬͿ >W, Ϭ ϭϱ ͲϬ ϭϭͿ ϱϭ ϱϭ ϰϭ ϯ ϱϯ ϱϭ ϳϭ DW>Kz ^ ϭ ϱ Ϳ Ϭ Ϭ ϰ Excellent earnings growth Ϭ ϯ Ϭ Stock clears flat base on almost double average volume Ϭ Ϯ ϱ ϰϭ Ϭ Ϭ нϲ Source: Corporate Website,& нϯ ϳϮй Ϭ ϭ Komax is the global niche leader in the automated wire processing and testing of wire harnesses. It has a global distribution network with offices in 60 countries. ϭ ϴϰ Ͳ 40-week MA ϭ ϭϯϭ ϭ Ϭ 10-week MA RS line at new high and very good RS and A/D Ratings Company Overview After Komax successfully divested its Medtech business in H1 2016, it has become a pure play on wire processing equipment in the automotive market, which accounts for 100% of its revenues. Its 2016 revenue breakdown by geography: Europe (excluding Switzerland) 49%, the Americas 21%, Asia 20%, Africa 8%, and Switzerland 2%. ϰϲ Strong earnings and sales growth in latest period Increasing institutional ownership >/E sk>hd O Neil Methodology During H1 FY 2017, Komax s order intake grew significantly, to CHF 224.4M, up 22.2% y/y. Its revenue declined 0.8% y/y to CHF 194.7M, while its net profit reduced 18.7%, y/y. The decline in the revenue was on account of delay in revenue recognition due to non-delivery of orders. The Stock s Up/Down volume and A/D Rating has been weakening over the past five weeks and currently stands at 1.3 and -2. Its RS Rating dropped from 68 to 61; however, its Group Rank has strengthened from 28 to 20 in two weeks. Growth Drivers Globally, about 60% of all processed wiring is used by the automotive industry. The number of vehicles produced is expected to grow at a CAGR of 3% from 2015 to Moreover, rapid electrification of cars will further increase the cable content per car. The growing importance of quality assurance and rising wage costs in emerging countries will drive the demand for automated processing, thereby, substituting the still dominant manual cable harness manufacturing. Komax is all set to continue with its strategy of strengthening other market segments outside of the automotive industry, such as aerospace, telecommunications and data communication, and industrial applications. These segments account for about 15% of Komax s revenues. Local Code: V Bloomberg Symbol: KOMN:SW ISIN: CH Ϭ< ϭ< ϭϰϭ< Ϭ< Ͳϭ < ϭϰ ϭ< ƵŶ ϭϭ ^ĞƉ ϭϭ &/E E / >^ ϱ Ϭϲ W^,&Ϳ ĞĐ ϭϭ ϲ ϲϯ нθй W^ й, E' ϭθϯ ϲ ^ > ^ D/>,&Ϳ нϭϰϭй ϭθϲ ϰ Ͳϰ ϭ Ϯ Ͳ ϭϰϰ ϱ нϳ ϭϱϳ ϳ нϭ Ϭϴ ϯ ϲ Ͳϰ ϭ ϱ нϰй ϭ ϰ нθϯй ϭϰϳ ϭ Ͳϭ Ϯ ϰ нϰ ϲ ϱ нϯй ͲϮϯй Ͳй нϭϭй нϯ н нϭ Ͳ нϭй нϯ нϭ W^ й ^hzwz/^ ϲϲ ϱϳ &he ^ DĂƌ ϭϯ :ƵŶ ϭϯ Ϯ ϱθ ^ĞƉ ϭϯ ĞĐ ϭϯ Ϭ Ϯϯ DĂƌ :ƵŶ ϰ ϲϯ ^ĞƉ ĞĐ Ϯ ϳϯ Ϯ ϱϰ ϲϲ ϲϳ ϲϲ ϳϭ ϳϮ ϴϰ ϳ ϴ ϭ ϰ ϯϲϳ ϲθϳ ϲ ϰθϱ ϯϳϳ ^, Z ^, > z &he ^ ϭ Ϯ ϱϰ ϳϰϴ ϱ ϯ ϰϳϯ ϯϯϳ ϱ Ϭϳϱ ϱϳϯ ϴϳ ϲϯϯ ϯ ϳϯ ϭ ϳϲϱ ϯ ϴϰϬ ϳ Π ϮϬϭϲ t/>>/ D KΖE /> н K /E ϭ ϱ Ϯ ϭ ϭϯϯ ϰ Ϯϴ ϭ ϯ ϰ ϳϰ Ϯ ϲ ϲ ϬϬ ϭϱϱ ^ĞƉ ϭϲ Ϯϯ ϮϬϭϲ Ɛƚ ϮϬ ϱͳljƌ,ŝőś Ϯ ϱͳljƌ >Žǁ ϳ ǀƐ /ŶĚ ǀŐ Ϭ ϳdž Ϯϭ ϰθϲ ϭ Ϭϴϰ ϲϲϯ ϭ ϬϯϮ ϱ ϭ Ϭϯϱ ϲ ϭ Ϭϳ Ϯϳ ϭ Ϭϲ ϴϯ ϭ Ϭϱϴ ϲθϭ ϭ Ϭϲϳ ϴϭϴ <ŽŵĂdž <KDE,Ϳ tğğŭůlj ĂƐ ŽĨ tğě EŽǀĞŵďĞƌ ϭϲ ϮϬϭϲ ŽǀĞŵďĞƌ ϭϲ ϮϬϭ The Company s goal is to build up competencies in these areas and expand through potential acquisitions. On June 28, 2017, Komax acquired a French company, Laselec SA, which specializes in laser-assisted cable stripping, marking solutions and designing intelligent layout boards for wire harness production. This acquisition enables Komax to strengthen its aerospace market segment. Komax is also strengthening its position in growing markets in Asia with the takeover of assets of Practical Solution, Singapore, and also practical solution trading, China. Following this takeover, Komax will have a total of three development sites in Asia: Singapore, Shanghai and Tokyo. Looking Forward From 2017 to 2021, the Company has guided for revenues in the range of CHF M, which translates to a CAGR of 6-10%. It also guided for EBIT in the range of CHF M implying the margin to be approximately 16-17%, compared to the trailing three-year average EBIT margin of 12%. On the back of strong order intake, the Company has guided for a revenue target of CHF M by 2021 and a robust dividend payout of 50-60% from The next catalyst is the 2017 trading update on January 23,

85 SWITZERLAND <ŽŵĂdž <KDE, W^ dž ϯϲ ϯϲ ϯϭ ϴϮ Ϯϳ Ϯϳ ϳϯ ϮϬ ϭ Ϭ Ϯϳ ϭϱ ϰϱ ϲϰ ^t/^^ ^ džđś,ϭϭϯϭϱϰ нϰϭ ϰϭ ϰϱϱ Ϭϰ ϱϱ W^ ZĂŶŬ DĂĐŚŝŶĞƌLJͲ'ĞŶ /ŶĚƵƐƚƌŝĂů ŬŽŵĂdžŐƌŽƵƉ ĐŽŵ Komax DŬƚ ĂƉ,&ϭ ^ĂůĞƐ,&ϴ ϳϭD ŝğƌŝŭžŷ ^t/d Z> E ^ŚĂƌĞƐ ϰd &ůžăƚ ϰd W^ ƵĞ ŝŷ ϰϲ ĂLJƐ ĞͿ K, Ͳϯй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ <KD y,k> /E' ' /^ ^t/d Z> E Ͳ ^,K> /E' KDW Ez E' ' /E d, D,/E Zz ^ dkz d, KDW Ez ^W / >/ ^ /E D, dzke/ ^ > dzke/ ^ E ^K&dt Z d,ek>k'z E KE EdZ d ^ KE s >KW/E' WZK h /E' E D Z< d/e' W/d > 'KK ^ E ^ Zs/ ^ &KZ t/z Ͳ WZK ^^/E' W,KdKsK>d / ^ E D / > d,ek>k'z WW>/ d/ke^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϰ ϳϮ Ͳϰ ϬϮ ϰ ϲϯ Ϯ ϯϯ ϱ ϴ ϲ ϯϱ ϳ ϯϱ ϴ ϴϱ W^ hz ϭź ϭϯ ϭÿ ^, &>Kt ^,Z hz ϳ Ϯϳ Ͳϯ ϴ ϴ ϱϯ ϭϭ ϳϮ ϰ ϴϯ ϴ ϱϯ ϭϭ Ϭϱ ϭϭ Ϯϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ͲϭϮй й ϰй й й й Ͳ ϭ ^ƚăďŝůŝƚljͿ ϭ Ͳ ϭ ϰй ϭ ϭ ϭ ϭϯй Ͳ ϭ Ϯϳ ^ƚăďŝůŝƚljͿ ϭ Ͳϯ ϯй ϭϯй Ͳй ϭϭй Ͳϰй Ϯ KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz Ϯϯϭ ϭϰϭ Ϯϳϭ ϱ Ϯ ϰ Ϯ Ϯϴ ϲ /Es d K Ϯdž ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď Ϭϭ d й ϴй й ϲϳ ϲθ ϲϰ ϲ ϲθ ϲθ ϲϳ d y Z d ϭθй ϭθй ϭϭ ϭϭ ϭϯ ϭϯ <>K' Ϯ ϯ Ϯ Ϯ Ϯ Ϯ Ϯ ϰ Ϯ ϴ Ϯ Ϯ Ϯ ϯ Ϯ ϯ Ϯ Ϭ Z Θ ϳ й < s > ϯ ϭdž Ζϭϲ ϯϲ Ϯ ϭθ ϭϲ ϭϱ ϱ Ͳϯ /s hz ϱ ϲϭ Ϯ Ϳ /s 'Z Zdн ϯϯͿ ϲθ ϳϮ ϳϭ ϳϰ ϳϰ ϳϮ ϳϯ ϳϭ ϲ d ϭ ϬϬͿ >W, Ϭ Ϭϰ Ϭ ϬϯͿ Ϯϭ ϭθ ϭθ ϭθ ϯϭ ϯϱ ϯϯ ϯϯ ϮϬϭϲ DW>Kz ^ ϭ ϲϯϯ ϯйͿ Ϭ Ϭ Ϭ ϰ Ϭ ϯ Ϭ ϯϯϯ Ϭ ͲϮ ϭϭ ϴϮ ϭ ϬϬ Ϯ Ϭ Ϭ ϴ ϲϰ ϴ Ϭ ϳ ϳϯ ϲ Ͳ ϲ ϴϮ,& ͲϬ й ϭ ϭ ϱ ϭ ϱ ϰϱ ϱ ϬϬ ϭ ϭϯϭ ϭ ϰ ϱϱ Ϭ ϰ Ϭ ϯ ϲϰ ϯ ϭθ Ϯ ϳϯ Ϯ Ϯϳ Ϯ Ϭ ϰϲ ϭ ϭ ϭ ϳϯ ϭ ϱϱ ϭ ϯϲ ϭ ϭθ Ϭ< < ϰϱ ϴ< < Ͳϰй < ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ W^ hzͿ W^ й, E' Ͳ ϭ ϴ ^ > ^ D/> hzͿ Ͳй DĂƌ W^ й ^hzwz/^ ϲϲ ϲϱ &he ^ ϱϭϱ ϭϰϲ ϰϳϭ ϭϱϰ ϳ Ϯ ^, Z ^, > z &he ^ :ƵŶ ϯ ϳϲ нϳ ϭϯθ Ϯ нθй ^ĞƉ ϳϭ ϱ ϳ ϴϯ ϲ ϭθϭ ĞĐ Ϯ Ϯϯ нϭ Ϭϳϰй ϭϰϭ ϲ нϭθй ϱ ϳϭϮ Ϭ ϲ ϳ Ϭϲϳ ϭ ϯ Ͳϰ ϭϰϭ Ϯ нϭ ϰ ϰϭ н ϭϱ Ϯ нϭϯй ϯ ϱϯ нθϯй ϭϰϭ ϯ ϱ ϲθ нϲϭй ϭθϭ ϰ нϯθй ^ĞƉ ϭϲ ĞĐ ϭϲ ϯ ϰϱ Ͳ ϭθϭ Ϭ нϯй DĂƌ :ƵŶ ϰ ϰ ͲϮϭй ϴ ϯ ͲϮй ^ĞƉ ĞĐ ϯϯ ϮϬ Ɛƚ ϭ ϬĞ ͲϭйĞ ϮϬϭϴ Ɛƚ Ϯϯ Ϭϭ ϱͳljƌ,ŝőś Ϭ ϱͳljƌ >Žǁ ϭϰ Ϭ ϴ ϴ ϱϯϯ ϭϯϭ ϭϯϯ ϭ ϭ ϯ Ϯ ϲ ϭϱϳ ϭ ϴ ϭ ϬϴϮ ϭ Ϭ ϳϯ ϭ ϬϰϬ ϰθϯ ϭ Ϭϴϰ ϳϳ ϭ ϭ ϳ ϭ Ϭϲϯ ϲ ϭ Ϭϳϭ ϱϲϲ Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϯ Ͳ ϲ нϭϭй ϭϲϭ ϭ ϭ ϬϬϬ ϴϲϯ ϭ ϬϲϮ Ϭϱϲ Ϯ ϭθϯ ϴ Ϭ ϭ Ϭϰϴ ϱ ϮϬϬ ϭ ϲϭ ǀƐ /ŶĚ ǀŐ ϭ ϭdž <ŽŵĂdž <KDE,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϴ -83- Capital Equipment: Machinery-Gen Industrial

86 Remy Cointreau FRANCE Good EPS Rank Rémy Martin VSOP and XO variants Source: Corporate Website 40-week MA Strong estimates revised higher Pretax margin at three-year high Shares clear consolidation on 4x average volume 10-week MA Based in France, Rémy Cointreau (RCO.FR) produces and distributes wines and spirits globally. It owns Rémy Martin, one of the largest global cognac houses. The Company continues to benefit from its premiumization strategy and strong demand from China. Good A/D and R/S Ratings Increasing institutional ownership Company Overview Apart from Rémy Martin, the Company s other brands include Louis XIII, Mount Gay, and St. Rémy, among others. H1 FY 2018 revenues by segment: Rémy Martin, 67.4%; liqueurs and spirits, 23.7%; partner brands, 8.9%. H1 FY 2018 revenues by geography: Americas, 41%, EMEA, 31%; APAC, 28%. O Neil Methodology Rémy displays a strong EPS Rank of 91 due to accelerating EPS growth in recent quarters. For Q2 FY 2018, Rémy reported 6.2% y/y organic sales growth, with 13.2% y/y organic growth for the Rémy Martin (cognac) division. Both were above consensus expectations. The Company is focusing on a premiumization strategy where it aims to increase the proportion of revenues from premium brands (priced at>$50 per bottle) to 60-65% of total revenues by 2020, compared with 45% in In H1 FY 2018, on an organic basis excluding currency effects, EBIT grew 11.8% y/y with 110bps of margin expansion, aided by the strong performance of premium spirits. For the Remy Martin brand (86% of reported EBIT for the period), organic EBIT growth was 17.6% y/y, above consensus expectations of 16% y/y. Growth Drivers Western spirits are expected to continue their strong recovery in China, driven by the demand for premium and iconic brands from the growing middle class. APAC remained the strongest performing geography, and the Company saw 23.6% y/y organic growth in the region for H1 FY According to the Company, growth in the recent quarter was driven by continued favorable trends in continental China; Singapore, Japan, and the U.S. also saw favorable trends. Russia, Central Europe, and Africa also saw positive performance, allowing the Company to re-report positive growth in EMEA. In APAC and the Americas, Rémy stated that it recorded strong growth in its travel retail business. Looking Forward According to Research and Markets, the brandy market in the U.S. is expected to have a CAGR of 1.15% from 2016 to However, the overall alcoholic beverages market is projected to expand at a CAGR of 3.51% from 2016 to According to Euromonitor International, China s overall spirits industry is projected to generate $183B in sales in 2020, a CAGR of 6.3% from 2016 to The next catalyst is the Company s 9M FY 2018 revenues, which will be released on January 19, Local Code: FR:RCO Bloomberg Symbol: RCO:FP ISIN: FR

87 FRANCE ZĞŵLJ ŽŝŶƚƌĞĂƵ Z K &Z W^ ϯϯ dž ϭϯ ϳϯ ϭϭ ϱϯ Ϭ ϳ ϴϴ ϳ Ϯϳ ϲ ϲϳ ϱ ϳϲ ϱ ϭϱ W Z/^Ͳ^ & džđś &ZϬϬϬϬϱ нϯϯ ϭ ϰϰ ϰϱ Ϯϱ W^ ZĂŶŬ Ϯ ĞǀĞƌĂŐĞƐͲ ůđžśžůŝđ ƌğŵljͳđžŝŷƚƌğăƶ ĐŽŵ Remy Cointreau DŬƚ ĂƉ Φϱ Ϯ ^ĂůĞƐ Φϭ ŽŐŶĂĐ &Z E /ŶĐ ϴϮ ^ŚĂƌĞƐ D &ůžăƚ D W^ ƵĞ ŝŷ ϭϯϱ ĂLJƐ ĞͿ K, ͲϭϮй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ Z Dz K/EdZ h Z Dz K/EdZ h ^ /^ &Z E Ͳ ^ KDW Ez E' ' /E d, WZK h d/ke E /^dz/ hd/ke K& t/e ^ E ^W/Z/d^ DKZ EEh > Ͳ D Z E ϮϬϭϲ ϮϬ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬ ƐƟŵĂƚĞ ϭ ϴϰ ϭ ϳϰ ϭ ϰϯ Ϯ Ϯϱ Ϯ ϲϳ ϭ Ϯϳ ϭ ϭ Ϯ ϭϭ ϯ ϴϳ W^ hz ϯ Ϭϱ ͲϮϭйź ϯ ϭϭйź ^, &>Kt ^,Z hz Ͳϭ ϰϭ ϭ ϱϯ Ϯ Ϯ ϯ ϲϱ ϭ Ϯ ϱϲ ϯ ϬϮ ϯ ϰϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭ ϭ ϭ ϭ ϭθй ϭϯй й ϭ Ͳ ϰ ϭϯ ^ƚăďŝůŝƚljͿ ϭϭй й ϭ Ͳ ϰϭ ^ƚăďŝůŝƚljͿ Ͳϭй Ͳй й ϭϯй й ϭ Ͳ Ͳ ϰй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϳϭϰ ϴ ϴ ϭ Ϭ ϭ ϯ ϭ ϬϯϮ ϲϱ ϭ Ϭϱϭ ϭ Ϭϱ /Es d K Ϭ ϯdž Ϯ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й Ͳ ϯϯй ϭ ϯ ϳϰ ϳϲ ϳϱ ϳϰ ϳϰ ϳϭ ϲ ϲϯ ϲϯ d y Z d Ͳ й Ϯ й ϴϮ ϴϯ ϳϴ ϴϮ ϴϯ ϴϴ Ϯ ϳ <>K' Ͳ ϭ ϲ ϭ ϯ ϭ Ϯ ϭ ϯ ϭ ϯ ϭ ϭ Ϭ Ϭ ϴ Ϭ ϴ Z Θ < s > ϰ Ϭϴdž Ζ ϲ ϭθ Ͳϯ Ϯ Ͳϭϴ Ͳϭϱ Ͳϭϭ /s hz ϭ ϲϱ ϭ Ϳ /s 'Z Zdн ϮϭͿ ϴϴ ϴϲ ϴϳ ϴϱ ϳ ϳϱ ϲϱ ϱϰ ϱϲ d Ϭ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϱͿ Ϯϴ Ϯϴ ϯϯ ϯϲ ϲϳ ϲ ϮϬ DW>Kz ^ ϭ ϴ ϯйͿ ϯ Ϭ Ϭ Ϯ Ϭ Ϭ Ϭ ϭ ϰ ϱϱ ϭ ϰ ϯ ϰ ϯ ϲϰ ϯ ϯϯ ϭ ϭϯϭ ϭ ϯ Ϭϯ ϱ ϮϬ Ϭ hz Ϯ ϳϯ Ͳϭ ϬϬ ͲϬ ϰй Ϯ Ϯ ϭϯ ϭ ϴϮ ϭ ϱϯ ϭ ϯ ϱϲ н ϭ Ϯϳ ϰϲ ϭ ϭϱ ϭ Ϭϯ Ϭ ϭ Ϭ ϳ Ϭ ϳϯ Ϭ ϲϳ Ϭ ϱθ Ϭ ϱϯ Ϭ ϰϱ ϭϱ ϭd Ϭ< ϱ Ϯ< Ϭ< нϯϯй ϮϬϬ< ĞĐ ϭϯ DĂƌ &/E E / >^ Ϭ ϴϴ W^ hzͿ W^ й, E' Ͳϯϭй ^ > ^ D/> hzͿ ϱϳ ϱ нθй W^ й ^hzwz/^ Ͳϰ ϰϱ &he ^ ϰϱϯ ϭϱ ϭϭd ^, Z ^, > z &he ^ :ƵŶ Ϯ ϭϯd ^ĞƉ ϭ ϰϭ ͲϮϭй Ϯϰ ϯ Ͳϱϭй нϳ ϯй Ϭ ϭϯd ĞĐ Ϯ ϭϯd ͲϬ ϭϰ Ͳϭϭ ϰϳϯ ϱ ͲϮϭй Ͳϭϴϯ ϯй ϰθϰ ϭϯd ϰ ϭϭd ϭ Ͳϴй ϰϳϭ ϴ нϲ Ϭ ϯ ϭϭd Ϭ ϲϯ нϱϰϯй ϰϯ ϯ нϰй ϭ ϯϳ н Ϭ ϳ н ϰϲ ϱ ϱϯθ D ϲϯϱ ϳϴϳ ϲϱϭ ϴϮϴ ϰϳϯ Ϭ Ϭ D Π ϮϬϭϴ t/>>/ D KΖE /> н K /E Ϭ ϳϰ нй ϱϰ нϭϭй н Ϯй ϱϭϭ ϭϭd ϱϯϯ ϭϯd ^ĞƉ ϭϲ ϭ ϱϳ нϭ ϱ ϰ нϯй нϰ ϱϳϯ ϭϭd ĞĐ ϭϲ ϱθϯ ϭϯd DĂƌ Ϯ нϯϭϭй ϱθϭ ϱ н :ƵŶ ϱϯ ϭϭd ϲϭϱ ϭϭd ^ĞƉ ϭ нϭ ϱϰϰ ϯ н нϰ ϲϭθ ϭϭd ĞĐ DĂƌ ϭθ ϭ ϮϴĞ ͲϰĞ ϱθ ϳĞ нϭйğ Ϯϴ ϮϬϭϴ Ɛƚ ϮϬ Ɛƚ ϯϭ ϭϯ ϱͳljƌ,ŝőś ϱ Ϭ ϱͳljƌ >Žǁ ϮϬ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ dž ZĞŵLJ ŽŝŶƚƌĞĂƵ Z K &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -85- Consumer Staple: Beverages-Alcoholic

88 Kerry Group 'A' IRELAND <ĞƌƌLJ 'ƌžƶɖ Ζ Ζ <z' / W^ Ϯϳ dž ϭϭ ϭϭ ϲϯ ϴ ϴ ϴ ϭϱ ϳ Ϭϰ ϲ ϱ ϱϲ Source: Corporate Website Kerry (KYGE.IE) is a leading manufacturer of technology-based taste and nutrition solutions for the food, beverage, and pharmaceutical markets. The Company benefits from clean-label product innovation and strong growth in APAC. Company Overview Kerry operates through two segments: taste & nutrition (T&N, 79% of revenue) and consumer foods (21% of revenue). The T&N segment manufactures ingredients and flavors. Consumer food segment manufactures branded value-added foods and customer-branded chilled food products and supplies to the Irish and the U.K. markets revenue by geography: EMEA, 45%; Americas, 42%; APAC, 13%. O Neil Methodology Since their breakout on October 2, shares are trading constructively above their 50-DMA and are extended from a proper buy point. For , revenues grew in the low-single digits but earnings grew an average of 25%. Top-line growth accelerated from 1% to 4% y/y in the past three quarters. Revenue growth is expected to be back at 4% for the next two years, driven by healthy volume growth in APAC. In Q3 2017, Kerry s like-for-like growth accelerated to 7.4% from 6.1% in Q2 2017, driven by strong 5% y/y volume growth and 2.4% y/y pricing growth. The growth was across both the divisions. Growth Drivers Kerry is the largest player in the $65B flavors and ingredients market, with a market share of 9%. It is a highly fragmented market, growing 1 3% per year. It is also a market leader in clean-label solutions across all end-use markets and foodservice channels, a segment expected to register double-digit growth in In its long-term, five-year target, Kerry forecasts consolidated volume growth of 3 5% per year, faster than the overall market. Local Code: IR:KRZ Bloomberg Symbol: KYG:ID ISIN: IE ϰ ϴϭ ϰ ϰϰ ϰ Ϭϳ h >/E džđś / ϬϬϬϰϲϱ нϯϱϯ ϲϲ ϳϭϴ ϮϬϬϬ W^ ZĂŶŬ ϴϳ &ŽŽĚͲWĂĐŬĂŐĞĚ ŬĞƌƌLJŐƌŽƵƉ ĐŽŵ DŬƚ ĂƉ Φϭϰ ϯϲ ^ĂůĞƐ Φϲ Ϯϴ dƌăůğğ /Z > E /ŶĐ ϴϱ ^ŚĂƌĞƐ ϲd &ůžăƚ ϭϱϭd W^ ƵĞ ŝŷ ϭ ĂLJƐ ĞͿ K, Ͳϰй D'Dd ŽǁŶƐ (XURSH /RQJ LQ :.6 < ZZz 'ZKhW W> /^ WZKs/ Z K& d ^d E EhdZ/d/KE ^K>hd/KE^ d, KDW Ez ^ Zs ^ d, &KK s Z ' E W, ZD hd/ > /E h^dz/ ^ E /^ ^hww>/ Z K& Z E E h^dkd Z Z E &KK ^ dk d, /Z/^, d, he/d </E' KD E ^ > d /Ed ZE d/ke > D Z< d^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ Ϭϭ ϭ ϭϱ ϭ ϴϱ Ϯ Ϭϲ ϭ ϰθ Ϭ ϰθ Ϯ ϳϯ Ϯ ϯ Ϭϯ W^ hz ϯ ϯ ϭϯйź ϯ ϲθ ź ^, &>Kt ^,Z hz ϭ ϭ ϴ Ϯ Ϯ ϰϰ Ϯ ϲϳ Ϯ ϴϭ ϯ ϭϯ ϯ ϳϯ ϯ ϱϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй ϴй ϴй Ϯй ϭ ϭ ϭ Ͳ Ϯ Ϯ ^ƚăďŝůŝƚljͿ Ϯй ϭ ϭ й Ϯϭй ϰй Ϯϯй Ϯϭй ϭθй Ͳ й ϱϭ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' Ͳ ϭ ϭ Ͳϭй KDW Z d/e' ^ > ^ D/>Ϳ hz ϰ ϳϭ ϰ ϱϯϭ ϰ ϱ Ϯ ϱ ϴϰϴ ϱ ϴϯϳ ϱ ϳϱϳ ϲ ϱ ϲ ϭ /Es d K ϳ ϭdž ϰϱ ϭθ ƵŐ Ϯϱ ƵŐ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ^ĞƉ Ϯ ^ĞƉ Ϭϲ KĐƚ KĐƚ d й ϱ ϳϮй ϲ ϰϳ ϰ ϰθ ϰ ϱϭ ϱϰ ϰθ d y Z d й й ϭθϰ ϭ ϭ ϰ ϭϰθ ϭ ϭϱϲ ϭϲϯ ϭθϱ <>K' ϭ Ϯ ϭ Ϯ ϭ ϰ ϭ ϳ ϭ ϭ ϳ Ϯ ϭ Ϯ ϱ ϭ ϱ Z Θ ϰ ϯ < s > ϰ ϯϳdž Ζϭϲ ϭϱ ϭϰ ϮϬ ϭϭ ϭϲ Ϯϯ ϯϳ ϭ /s hz Ϭ Ϭ Ϳ /s 'Z ZdнϭϮй ϭͿ ϳϰ ϳϳ ϳ ϳϴ ϳϲ ϳϴ ϳ ϴϱ ϳ d Ϭ ϱϰ ϬϬͿ >W, Ϭ ϬϮ Ϭ ϬϮͿ ϱ ϭϰ ϭϯ ϭϭ ϴ ϮϬϭϲ DW>Kz ^ Ϯϯ Ϭϯϲ ͲϭйͿ Ϭ Ϯ Ϭ Ϭ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ ϯ Ϭ ϯ ϯϯ ϯ Ϭϰ Ϯ ϲ ϴϭ ϱϯ hz Ϯ ϱ Ͳϯ Ϭϱ Ͳϯ ϲϭй Ϯ ϭ ϴϱ ϭ ϰϲ ϭ ϱϲ ϭ ϰϭ ϭ ϳ н ϭ ϭϭ Ϭ ϲ Ϭ ϴ Ϭ ϴϭ Ϭ Ϭ ϲϯ Ϭ ϱϲ ϭϱ Ϭ ϰθ Ϭ ϰϰ Ϭ ϰϭ ϭϯ ϭϭ Ϯ ϬD ϭd нϭϱϯй Ϭ< ϮϬϬ< Ϯ&/E E / >^ DĂƌ :ƵŶ W^ hzͿ Ϭ ϲϳ й W^ й, E' нϭϯй ϭ^ > ^ D/> hzͿϯ ϰ ϰ й нϭй W^ й ^hzwz/^ ϴ&hE ^ ϱϲϭ ͲϬ ^ĞƉ ĞĐ ͲϬ ϭ ϭϭ ͲϭϮϭй Ϯ ϴϴϳ ϯ нϲ Ϯ ϴϯ ϱ ͲϮй ͲϮй ϭ ϲϯ нϱϯй Ϯ ϴϲϯ ϭ ϭ ϯϱ нй ϯ ϬϮϴ ϭ ϭ ϲϰ ϭ нϭй ϯ Ϭϳϲ ϴ Ͳ ϯ Ϭϯϲ ϲ Ͳϭй н н нϭ Ϯй ͲϮ ϭй нϯ ^ĞƉ ϭϲ ĞĐ ϭϲ ϭ ϳϲ DĂƌ :ƵŶ ϭ Ϯϴ ĞĐ ϭ ϴĞ DĂƌ ϭθ :ƵŶ ϭθ ϭ ϲϰğ нϯй ϯ ϭθϭ ϯ нϭϯйğ ϯ Ϯϭϭ Ğ нϯθйğ ϯ ϯ ϭğ нϭй н нϰйğ нğ нϯ ϭй Ϯϳ ϮϬ Ɛƚ Ϭ ϮϬϭϴ Ɛƚ Ϯ ϱͳljƌ,ŝőś ϱ ϱͳljƌ >Žǁ ϭθ ϱθϰ ϱθϯ ϱθϰ ϲϭθ ϲθϰ ϳϯϱ ϳϱ Ϯ ϴϮϱ ϭϱ ϲϯ ϭ Ϭ ϭ Ϭ ϭ ϭϯϭ ϭ Ϭ ϭ Ϭϳ ϭ Ϭϴ ϰ^, Z ^, > z &he ^ ϰϭd ϰϭd ϰϭd ϯd D D D ϰϯd ϰϲd ϰθd ϰd ϰθd ϰd D D ϱϯd ϱϭd D Π ϮϬ t/>>/ D KΖE /> н K /E ^ĞƉ н ϯ Ϭϰ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϭdž <ĞƌƌLJ 'ƌžƶɖ Ζ Ζ <z' / Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ KĐƚŽďĞƌ ϮϬ Kerry s Asia segment continued to grow by low-double digits in Q In the T&N segment, Kerry made bolt-on acquisitions of about $140M, with slightly more than $50M in revenues, in order to seize opportunities in the fast-growing APAC markets. In Q3 2017, Kerry announced acquisitions of Ganeden, Dottley Spice, and Kettle, all in the U.S., worth 270M. Acquisitions are expected to be accretive to 2018 EPS. From , FCF had a CAGR of 13.4%, owing to well-managed working capital and capital expenditures. The Company targets more than 80% cash conversion in the next five years and FCF of 3B. With a net debt to EBITDA ratio of 1.3x and interest cover of 14.9x, Kerry s balance sheet remains healthy and should provide flexibility for further M&A. Looking Forward Kerry has targeted adjusted EPS growth of more than 10% per year for Consensus calls for EPS growth of 12% in 2017 and 9% in Next Catalyst: The Company s FY 2017 results are due on February 20,

89 IRELAND <ĞƌƌLJ 'ƌžƶɖ Ζ Ζ <z' / W^ dž ϭϭ ϱϰ ϬϬ Ϯϯ ϴ ϰϲ ϳ ϯϭ ϲ ϱϰ ϱ ϳϳ ϱ ϬϬ ϰ ϲϯ ϰ Ϯϯ нϯϱϯ ϲϲ ϳϭϴ ϮϬϬϬ W^ ZĂŶŬ ϴϱ h >/E džđś / ϬϬϬϰϲϱ &ŽŽĚͲWĂĐŬĂŐĞĚ ŬĞƌƌLJŐƌŽƵƉ ĐŽŵ DŬƚ ĂƉ Φϭϱ ^ĂůĞƐ Φϲ Ϯϴ dƌăůğğ /Z > E /ŶĐ ϴϱ Kerry Group 'A' ^ŚĂƌĞƐ ϲd &ůžăƚ ϭϱϯd W^ ƵĞ ŝŷ ϭθ ĂLJƐ ĞͿ K, Ͳ D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 < ZZz 'ZKhW W> /^ WZKs/ Z K& d ^d E EhdZ/d/KE ^K>hd/KE^ d, KDW Ez ^ Zs ^ d, &KK s Z ' E W, ZD hd/ > /E h^dz/ ^ E /^ ^hww>/ Z K& Z E E h^dkd Z Z E &KK ^ dk d, /Z/^, d, he/d </E' KD E ^ > d /Ed ZE d/ke > D Z< d^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ Ϭϭ ϭ ϭϱ ϭ ϴϱ Ϯ Ϭϲ ϭ ϰθ Ϭ ϰθ Ϯ ϳϯ Ϯ ϯ Ϭϯ W^ hz ϯ ϯ ϭϯйź ϯ ϲϯ ź ^, &>Kt ^,Z hz ϭ ϭ ϴ Ϯ Ϯ ϰϰ Ϯ ϲϳ Ϯ ϴϭ ϯ ϭϯ ϯ ϳϯ ϯ ϱϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϴй Ϯй ϭ ϭ ϭ Ͳ Ϯ Ϯ ^ƚăďŝůŝƚljͿ ϯй ϭ ϭ й Ϯϭй ϰй Ϯϯй Ϯϭй ϭθй Ͳ й ϱϭ ^ƚăďŝůŝƚljͿ Ϯй Ͳ ϭ ϭ Ͳϭй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϰ ϳϭ ϰ ϱϯϭ ϰ ϱ Ϯ ϱ ϴϰϴ ϱ ϴϯϳ ϱ ϳϱϳ ϲ ϱ ϲ ϭ /Es d K ϳ ϭdž ϰϱ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď Ϭϭ d й ϱ ϳϮй ϲ ϱϰ ϱϰ ϱϭ ϱϯ ϱϯ ϱϯ ϰθ d y Z d й й Ϯϳϱ Ϯϳϴ ϮϱϮ Ϯ ϲ ϮϯϮ Ϭ Ϯϯϱ Ϯϯϭ <>K' ϭ ϯ ϭ ϯ ϭ ϲ ϭ ϰ ϭ ϯ ϭ ϭ ϭ ϭ ϭ ϭ ϭ Ϭ Z Θ ϰ ϯ < s > ϰ ϲϱdž Ζϭϲ ϭϭ Ͳ Ͳϭϲ ͲϮϱ Ͳϯϲ /s hz Ϭ Ϭ Ϳ /s 'Z ZdнϭϮй ϭͿ ϰ ϯ ϭ ϭ ϴϰ ϳϮ ϳϮ d Ϭ ϲϲ ϬϬͿ >W, Ϭ Ϭ ϬͿ Ϯ Ϯ ϯ Ϯ ϯ ϰ ϲ ϲ ϮϬϭϲ DW>Kz ^ Ϯϯ Ϭϯϲ ͲϭйͿ Ϭ Ϯ Ϭ Ϭ Ϭ ϭ ϭ ϭ ϭϯϭ ϭ ϯ ϴϱ Ϭ ϯ ϰϲ ϴϲ ϴϱ ϯ Ϭϴ ϯ Ϭϰ ͲϬ ϭ Ϯ ϲ Ϯ ϯϭ ϭ Ϯ ϭ ϳϳ ϰϲ ϭ ϲϯ ϭ ϰϲ hz ϭ ϯϭ ͲϬ ϭ ϳϮ ϭ ϭϱ ϭ ϬϬ Ϭ Ϯ Ϭ ϴϱ Ϭ ϳϯ Ϭ ϲϱ Ϭ ϱθ ϭϱ Ϭ Ϭ ϰϲ Ϭ ϭϯ ϭϭ ϭd ϴϱ ϰ< Ϭ< нϭй ϮϬϬ< ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ ϴ W^ hzͿ W^ й, E' ͲϮϴй Ϯ ϯϯ ϭ ^ > ^ D/> hzͿ нϭϭй DĂƌ W^ й ^hzwz/^ ϱ ϱϰϭ &he ^ ϰϭ ϰ ϰϭd ^, Z ^, > z &he ^ ϱϱϰ ϰϭd :ƵŶ Ϭ ϲϳ нϭϯй Ϯ ϰ ϰ нϭй ͲϬ ϱϳθ ϰϭd ^ĞƉ ϱϳϲ ϰϭd ĞĐ ͲϬ ͲϭϮϭй Ϯ ϴϴϳ ϯ ͲϮй ϱϳϲ ϯd ϲ D ϭ ϭϭ нϲ Ϯ ϴϯ ϱ ͲϮй ϲϲθ D ϳ D ϭ ϲϯ нϱϯй Ϯ ϴϲϯ ϭ Ͳϭй нϭ Ϯй ϳϰϭ ϰϯd ϳϴϮ ϰϱd ϭ ϯϱ нй ϯ ϬϮϴ ϭ н ͲϮ ϭй ϯ ϰθd ϴϯ ϰd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϭ ϲϰ нϭй ϯ Ϭϳϲ ϴ н нϯ ϯ ϰθd ϲ ϰθd ϭ Ͳ ϯ Ϭϯϲ ϲ ^ĞƉ ϭϲ ϭ Ϭϲϰ ϰd ϭ ϬϮ D ĞĐ ϭϲ ϭ ϳϲ н ϯ Ϭϰ Ϭ нϭй нϯ ϭй ϭ Ϭ ϱϯd DĂƌ :ƵŶ ϭ Ϯϴ нϯй ϯ ϭθϭ ϯ н ^ĞƉ ĞĐ ϭ ϲğ нϭϭйğ ϯ Ϯ ϳĞ нϯйğ Ϯϳ ϮϬ Ɛƚ Ϯϱ ϮϬϭϴ Ɛƚ Ϯϯ ϱ ϱͳljƌ,ŝőś ϱ Ϭ ϱͳljƌ >Žǁ ϭθ Ϭ ϭ ϬϲϮ D ϭ Ϭϯ ϰd ϭ ϬϮ ϭϯϭ ϱϰϭ ǀƐ /ŶĚ ǀŐ ϭ ϯdž <ĞƌƌLJ 'ƌžƶɖ Ζ Ζ <z' / Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϴ -87- Consumer Staple: Food-Packaged

90 Rubis FRANCE ZƵďŝƐ Zh/ &Z W^ dž ϬϬ ϴ ϴϮ ϳ ϲϱ ϳ Ϭϲ ϲ ϰϳ ϱ ϴϴ ϱ Ϯ ϰ ϳϭ ϰ ϭϯ ϯ ϱϯ W Z/^Ͳ^ & džđś &ZϬϬϭϮϯ нϯϯ ϭ ϰϰ ϱ ϱ W^ ZĂŶŬ Ϯ DŬƚ ĂƉ Φϱ ϱ ^ĂůĞƐ ΦϮ ϳϱ WĂƌŝƐ &Z E /ŶĐ ϱϰ ^ŚĂƌĞƐ ϰd &ůžăƚ ϴD W^ ƵĞ ŝŷ ϭϭϭ ĂLJƐ ĞͿ D'Dd ŽǁŶƐ (XURSH /RQJ Zh /^ ^ /^ &Z E Ͳ ^ /Ed ZE d/ke > KDW Ez E' ' /E d, ^dkz ' E /^dz/ hd/ke K& W dzk> hd E Kd, Z >/Yh/ WZK h d^ d, KDW Ez /^ ^dzh dhz ZKhE dtk t,k>>z KtE KW Z d/ke > /s/^/ke^ ^h, ^ Zh /^ d ZD/E > ^W / >/ /E d, h>< ^dkz ' K& >/Yh/ /E h^dz/ > WZK h d^ /E >h /E' W dzk> hd, D/ >^ & Zd/>/ Z^ E &KK ^dh&&^ &KZ d,/z W Zd/ ^ E Zh /^ E Z'/ E' ' /E d, >K'/^d/ ^ E /^dz/ hd/ke K& W dzk> hd WZK h d^ EKd >z >/Yh &/ W dzk> hd ' ^ >W'Ϳ t,/, Z ^K> ^ Kdd> ' ^ E /E h>< E D Z< d he Z d, s/dk' Z E E D Zh /^ ^ /^ WZ ^ Ed /E d,z ' K'Z W,/ KE ^ hzkw E Z Z/ E Θ D Z/ E Ed Z Z E &Z/ E Z d, KDW Ez KW Z d ^ ^K / d Z he/kee /^ WZK h/d^ W dzk>/ Z^ ^ t,k>>z KtE ^h ^/ / Zz ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ Ϭ ϭ Ϭϱ ϭ ϮϬ ϭ ϭθ ϭ ϭ ϰϱ ϭ ϰ Ϯ Ϭϯ Ϯ ϯϯ ϯ ϭϰ йÿ Ϯ ϳϳ йÿ W^ hz ^, &>Kt ^,Z hz ϭ ϳϯ ϭ Ϯ ϭ Ϯ Ϯ ϰϱ Ϯ Ϯ ϯ ϯ ϱϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϭ Ͳ й ϯ ^ƚăďŝůŝƚljͿ ϭ ϭ ϭϭй ϭ ϭ ϭϯй ϭϯй Ͳ й ^ƚăďŝůŝƚljͿ Ͳϭй ϰ ͲϮ ϱϯй ϰ ϯϭй Ͳϭй ϭй ϰй ϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ Ϯ ϱϯ ϭ ϰ Ϯ ϭϯϯ Ϯ ϳϮ Ϯ ϳϱϲ Ϯ ϳ Ϯ ϯ ϬϬϰ /Es d K ϭϭ ϭdž ϱϰ Ϯ ^ĞƉ Ϭϲ KĐƚ KĐƚ ϮϬ KĐƚ Ϯϳ KĐƚ Ϭϯ EŽǀ EŽǀ EŽǀ Ϯϯ EŽǀ d й ϰ ϱ ϰϯй ϲ ϲ ϲ ϲθ ϲθ ϲϲ ϲθ ϲθ ϳϮ d y Z d Ϯ Ϯ й ϰ ϱ ϱ ϲ ϳ ϳ ϴ ϱ ϭϲϰ <>K' Ϭ Ϭ ϴ Ϭ Ϭ Ϭ ϴ Ϭ Ϭ ϴ Ϭ ϭ Ϯ Z Θ < s > Ϯ ϭdž Ζϭϲ Ϭ Ͳϳ Ͳϯ ϱ ϱ ϰ /s hz ϭ Ϯ ϯйͿ /s 'Z Zdнϭ ϰͿ ϴϭ ϳϴ ϳ ϳϲ ϳϱ ϳϯ ϴϮ ϴϱ ϴϱ d Ϭ ϱϳ ϬϬͿ >W, Ϭ ϭϰ Ϭ ϭϯͿ Ϯϴ Ϯ ϯϭ ϯ ϰϱ ϯϱ Ϯϳ ϮϬϭϲ DW>Kz ^ Ϯ Ϳ Ϯ ϰ Ϯ ϳϭ Ϯ ϲϱ Ϯ ϰϳ Source: Corporate Website KŝůΘ'ĂƐͲZĞĮŶŝŶŐ DŬƚŐ ƌƶďŝɛ Ĩƌ Company Overview The Group has three divisions: Rubis Energy, which specializes in the distribution of LPG and oil products; Rubis Terminal, which specializes in the storage of liquid products; and Support and Services, which includes refining, trading, and shipping services. Its main markets for storage are France, Antwerp, Rotterdam, and Turkey. Its main markets for distribution are Europe, the Caribbean, and Africa. Q revenue by segment: Rubis Energy, 68%; Support and Services, 25%; Rubis Terminal, 7%. O Neil Methodology The stock broke out of a 10-week cup consolidation on November 13. It remains buyable at 4% above the pivot. The stock has a strong technical profile, with an RS Rating of 85 and an A/D Rating of A-. The stock s excellent EPS Rank of 92 is supported by 24% average earnings growth over the past three years. Q revenues grew 36% y/y to 1B. The Group saw a 28% y/y increase in global volume, aided by acquisitions in distribution segments in Haiti and Madagascar. On a like-for-like basis, volume was up 5% y/y. Despite the sharp increase in LPG prices (+51% y/y), Rubis recorded a 2 3% y/y increase in unit margins in its Energy division, indicating a continued ability to pass on price increases to customers. Local Code: FR:RUI Bloomberg Symbol: RUI:FP ISIN: FR ϭ ϭ ϭ ϭϯϭ ϭ Double digit EPS growth estimate, recently revised upwards Ϭ Trading constructively above the rising 50-DMA ϱ ϱϱ hz нϭ ϱ нϯ ϯ ϰϲ Improving Up/Down Volume ratio signifies Accumulation Ϯ Ϯ ϬϬ ϭ ϳϲ ϭ ϱϯ ϭ ϰϭ ϭ Ϯ Rubis (RUI.FR) is a downstream oil and chemical processing, storage, and distribution Company. The Group continues to grow by focusing on niche markets and consolidating recent acquisitions. LQ :.6 ϴϱ Ͳ ϭ ϭϯ ϭ ϬϬ Ϭ ϴϴ ϭϱ Ϭ ϳϲ Ϭ ϳϭ Ϭ ϲϱ Strong RS and A/D Rating ϭϯ Ϭ ϱ Ϭ ϱϯ Ϭ ϰϳ ϴ Ϭ ϰϭ ϳ ϭϭ Increase in Institutional funds Ϭ< Ϭ< ϱθ ϰ< Ͳϭ Ϭ< ƵŶ ϭϯ ^ĞƉ ϭϯ &/E E / >^ Ϭ ϴϭ W^ hzͿ ĞĐ ϭϯ Ϭ ϲ нϯ W^ й, E' ϯϲϰ ϱ ^ > ^ D/> hzͿ нй ϭ ϳ ϭ нϰϯй нϯ D Z'/E &d Z d y Ͳϭϲ ϭϰͳϭϲ >KtͲ,/', ϭϲϯ ϭθϭ &he ^ DĂƌ :ƵŶ Ϭ ϴϯ ^ĞƉ нϯй ϭ ϱϯϭ ϳ ĞĐ Ϭ ϳϲ нϭ ϭ ϰ ϯ Ϭ ϲϱ Ͳй Ϭ Ϭ ϴϰ нϭϭй ϳϭϭ ϴ Ϭ ϴ ϭ Ϭϱ нϱϭй ϭ Ϯϳ ϯ нϯ ϭ ϲϭϲ ϰ ϭ ϮϬ ^ĞƉ ϭϲ нй ϳ ϯ ĞĐ ϭϲ ϭ ϭϭ DĂƌ н ϭ ϱ :ƵŶ ϭ ϱϯ нϯθй ϭ ϰ ϴ нй нϭϭй Ͳй Ͳϯ Ͳϰϯй нй нϭϯ Ͳϯ Ͳϰй нϯϯй нϯ нϯ нϯ нϱ ϯй н ϯй нϲ ϭй нϱ нϭϭ нϲ нϭϭ ϭϰͳ ϭϱͳϭθ Ϯ ϭϰͳϭϲ ϮϬϭ Π ϮϬ t/>>/ D KΖE /> н K /E ϭϰͳϭϱ ϭθϲ ϭϰͳϭϱ ϭ ϭϱͳ ϭθϱ ϭϲͳϭθ ϰ ϭϰͳϭϲ ϮϬϯ Ͳϭϲ Ϯϭϰ ϭϰͳϭθ ϲ ϭϲͳϭθ Ϯϱϳ ϭϱͳϭθ ϯϭϭ ϭϲͳ ϯϱϱ ϭϰͳ ϯϱϲ ϭϰͳϭϲ ϰϭϯ ϭϱͳϭθ ϰϲϰ ϭϲͳϭθ ϰθϭ ϭϱͳ ϱϭϭ ͲϮϬ ϱϯϯ ^ĞƉ ϮϬ ϮϬ Ɛƚ Ϯϭ ϮϬϭϴ Ɛƚ ϭθ ϲ ϱͳljƌ,ŝőś ϮϬ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ ϭ ϱdž ZƵďŝƐ Zh/ &ZͿ tğğŭůlj ĂƐ ŽĨ dśƶ Ϯϯ EŽǀĞŵďĞƌ ϮϬ Growth Drivers Rubis is expanding into niche markets, including smaller European and African countries, where petroleum and other resources are mostly imported. This is giving it a major competitive advantage, which has helped it gain leading local positions. The Group has invested 2B in acquisitions and organic growth over the past 20 years. An increase in the number of acquisitions in recent quarters, and the consolidation of these acquisitions, will further improve earnings in Rubis Energy finalized its acquisition of Galana in July, becoming the leading distributor of petroleum products in Madagascar with a 30% market share. At the end of July, it completed the acquisition of LPG distribution assets from Repsol in Portugal. Rubis Energy completed the acquisition of Dinasa in April, becoming the leading distributor of petroleum products in Haiti. The acquisition added about 40.4M of annual EBITDA. Looking Forward Consensus expectations call for 29% sales and 19% EPS growth for 2017, followed by 11% sales and 13% EPS growth for Next catalyst: The Company s Q results announcement on February 8,

91 FRANCE ZƵďŝƐ Zh/ &Z W^ dž ϭϭ ϭθ ϬϬ ϴ ϴϮ ϳ ϲϱ ϳ Ϭϲ ϲ ϰϳ ϱ ϴϴ ϱ Ϯ ϰ ϳϭ W Z/^Ͳ^ & džđś &ZϬϬϭϮϯ нϯϯ ϭ ϰϰ ϱ ϱ W^ ZĂŶŬ ϯ KŝůΘ'ĂƐͲZĞĮŶŝŶŐ DŬƚŐ ƌƶďŝɛ Ĩƌ DŬƚ ĂƉ Φϱ ϱϯ ^ĂůĞƐ ΦϮ ϳϱ WĂƌŝƐ &Z E /ŶĐ ϱϰ Rubis ^ŚĂƌĞƐ ϰd &ůžăƚ D W^ ƵĞ ŝŷ ϰϭ ĂLJƐ ĞͿ K, Ͳϰй D'Dd ŽǁŶƐ 'HYHORSHG /RQJ LQ :.6 Ϭ Zh /^ ^ /^ &Z E Ͳ ^ /Ed ZE d/ke > KDW Ez E' ' /E d, ^dkz ' E /^dz/ hd/ke K& W dzk> hd E Kd, Z >/Yh/ WZK h d^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ ϭ Ϭϱ ϭ ϮϬ ϭ ϭθ ϭ ϭ ϰϱ ϭ ϰ Ϯ Ϭϯ Ϯ ϯϯ W^ hz Ϯ ϮϭйŸ ϯ ϭϲ йÿ ^, &>Kt ^,Z hz ϭ ϳϯ ϭ Ϯ ϭ Ϯ Ϯ ϰϱ Ϯ Ϯ ϯ ϯ ϱϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϴй ϭ Ͳ й ϯ ^ƚăďŝůŝƚljͿ ϭ ϭ ϭϭй ϭ ϭ ϭϯй ϭϯй Ͳ й ^ƚăďŝůŝƚljͿ Ͳϭй ϰ ͲϮ ϱϯй ϰ ϯϭй Ͳϭй ϭй ϰй ϯй KDW Z d/e' ^DZ Z d/e' ^ > ^ D/>Ϳ hz ϭ Ϯ ϱϯ ϭ ϰ Ϯ ϭϯϯ Ϯ ϳϮ Ϯ ϳϱϲ Ϯ ϳ Ϯ ϯ ϬϬϰ /Es d K ϭϭ ϭdž ϱϰ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ĞĐ Ϯ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ :ĂŶ &Ğď ϬϮ d й ϰ ϱ ϰϯй ϲ ϲ ϲ ϲ ϲϲ ϲϲ ϲϱ d y Z d Ϯ Ϯ й ϳ ϴ ϭ ϭ Ϯ Ϯ ϭ ϭϯϳ ϭϯϳ <>K' ϭ ϯ ϭ ϱ ϭ ϰ ϭ ϰ ϭ ϳ ϭ ϯ ϭ ϲ ϭ ϱ ϭ ϯ Z Θ < s > Ϯ ϯdž Ζϭϲ ϯϯ ϭϰ ϯϯ ϭϲ /s hz ϭ Ϯ ϮйͿ /s 'Z Zdнϭ ϰͿ ϴϲ ϴϳ ϴϳ ϴϱ ϴϲ ϴϯ ϴϱ ϴϲ d Ϭ ϲ ϭϰ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϭϭͿ Ϯϱ Ϯ ϯϯ ϱϰ ϲϯ ϲϳ ϮϬϭϲ DW>Kz ^ Ϯ Ϳ ϭ ϭ ϭ ϭϯϭ ϭ Ϭ ϰ ϭϯ ϯ ϱϯ ϱθ ϲϱ hz ͲϮ Ϯϱ Ͳϯ ϲ Ϯ ϰ Ϯ ϳϭ Ϯ ϲϱ Ϯ ϰϳ ϰϲ Ϯ Ϯ ϬϬ ϭ ϳϲ ϭ ϱϯ ϭ ϰϭ ϭ Ϯ ϭ ϭϯ ϭ ϬϬ Ϭ ϴϴ ϭϱ Ϭ ϳϲ Ϭ ϳϭ Ϭ ϲϱ ϭϯ ϭϭ Ϭ ϱ Ϭ ϱϯ Ϭ ϰϳ ϴ Ϭ ϰϭ ϳ Ϭ< Ϭ< ϲϯϯ ϲ< н Ϭ< ^ĞƉ ϭϯ ĞĐ ϭϯ &/E E / >^ Ϭ ϲ W^ hzͿ W^ й, E' нй ϭ ϳ ϭ ^ > ^ D/> hzͿ нй DĂƌ W^ й ^hzwz/^ ϭ ϴ &he ^ ϰϱϲ ϭϱd ^, Z ^, > z &he ^ :ƵŶ Ϭ ϴϯ нϯй ϭ ϱϯϭ ϳ нϭϭй ^ĞƉ ϮϬϭ ϭϰd ϭθϲ ϭϰd ĞĐ Ϭ ϳϲ нϭ ϭ ϰ ϯ Ͳй ϭ ϭϰd ϭθϱ ϭϱd Ϭ ϲϱ Ͳй Ϭ Ͳϯ ϰ ϭϱd ϮϬϯ ϭϲd Ϭ ϴϰ нϭϭй ϳϭϭ ϴ Ͳϰϯй Ϯϭϰ D ϲ ϭθd Ϭ ϴ нϱϭй ϭ Ϯϳ ϯ нй Ϯϱϲ D ϯϭϭ ϮϬD ϯϱϱ ϮϬD ϯϱϲ D ϭ ϮϬ нй ϳ ϯ Ͳϯ ^ĞƉ ϭϲ ϰϭϯ D ϰϲϯ ϮϱD ĞĐ ϭϲ ϭ ϭϭ н ϭ ϱ Ͳϰй DĂƌ ϰ D ϴ D :ƵŶ ϭ ϱϯ нϯθй ϭ ϰ ϴ нϯϯй ^ĞƉ ĞĐ ϮϬ ϮϬ Ɛƚ Ϯϭ ϬϬ ϮϬϭϴ Ɛƚ ϭθ ϱϱ ϱͳljƌ,ŝőś ϮϬ Ϭ ϱͳljƌ >Žǁ Ϭ Ϯ ϭϱd Π ϮϬϭϴ t/>>/ D KΖE /> н K /E ϭ Ϭϱ нϯ ϭ ϲϭϲ ϰ нϭϯ ϱϯϱ D ǀƐ /ŶĚ ǀŐ ϭ ϱdž ZƵďŝƐ Zh/ &ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ &ĞďƌƵĂƌLJ ϬϮ ϮϬϭϴ -89- Energy: Oil&Gas-Refining/Mktg

92 Smart Metering Systems UNITED KINGDOM ^ŵăƌƚ DĞƚĞƌŝŶŐ ^LJƐƚĞŵƐ ^D^ ' W^ ϯϳ dž ϰϭ ϱϰ ϯϱ ϭϰ ϯϯ ϰϯ Ϯ ϳϯ Ϯϳ Ϭϯ ϯϯ Ϯϭ ϲϯ Source: Corporate Website SMS Plc (SMS) provides gas connections, electricity connections, and reading solutions through its installed OFGEM-approved meters. Leveraging its recurring revenue model, the Company is expected to further benefit from new contracts and favorable government policies. Company Overview SMS installs and operates smart gas and electricity metering assets on behalf of leading energy suppliers in the U.K. It also provides gas and electricity usage and consumption data and efficient energy management services in the U.K. s industrial and commercial (I&C) market. H revenues by segment: Asset management, 60%; asset installation, 36%; energy management, 4%. O Neil Methodology The stock broke out of a six-week consolidation and is currently in a pivot range. Its RS Rating is high at 93. The Company s EPS Rank is 81, supported by average three-year revenue and EPS growth of 27% and 29%, respectively. Its EPS Rank is expected to further improve on the back of estimated EPS growth of 22% and 25%, respectively, in 2017 and In H1 2017, revenues and underlying EBITDA grew 14% and 10%, y/y, respectively. Growth was primarily driven by a 25% y/y increase in revenues from the asset management segment. Recurring meter revenues are up 17% since the beginning of 2017 while EPS is down 10% y/y due to a higher cost base in the installation of meters, increased cost of certain in-house systems, and increasing financial charges. Growth Drivers Recurring revenues increased at a CAGR of 30% from H to H1 2017, reaching 48.4M. Total gas and electricity metering and data assets operated by the Company rose to 1.68M units in H from 1.25M units in 2016, growth of 34%. This further ensures the visibility of recurring revenues. The Company agreed to supply at least 100,000 new meters per a contract with Utility Warehouse in August Local Code: UK:SMS Bloomberg Symbol: SMS:LN ISIN: GB00B4X1RC86 ϭθ Ϯ ϰθ ϭϲ нϰϰ ϭϰϭ W^ ZĂŶŬ ϴϭ >KE KE džđś ' ϬϬ ϰyϭz ϴϲ ƐŵƐͲƉůĐ ĐŽŵ y /s ϮϬ hɵůŝƚljͳ'ăɛ ŝɛƚƌŝďƶɵžŷ DŬƚ ĂƉ Ɖϲϴϲ ϴϴD ^ĂůĞƐ Ɖϳϭ ϳϮD 'ůăɛőžǁ he/d </E' KD ^D Zd D d Z/E' ^z^d D^ W> ^D^Ϳ /^ he/d </E' KDͲ ^ KDW Ez t,/, KEE d^ KtE^ KW Z d ^ E D /Ed /E^ D d Z/E' ^z^d D^ DKZ EEh > Ͳ E ϮϬϬϴ ϮϬϭϲ ϮϬ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ͳϭ ϬϬ ϭ ϬϬ ϭ ϬϬ Ϯ ϯ ϱ ϭθ ϳ ϴϲ ϰϲ ϰϲ ϯϯ W^ ' y Ϯϭ ϮϬ йÿ Ϯź ^, &>Kt ^,Z ' y Ͳ< ϲϯϳ< ϲ< ϲ ϰ Ϭ ϯ Ϯϭ ϯ ϯϯ ϯϱ ϯϲ ϴϴ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯ ϭ Ϯϭй Ϯ Ϯ й ϯϯй Ϯ Ͳ Ϯ ^ƚăďŝůŝƚljͿ й ϭϱ ϰθй ϯϭй ϯ й ϯ ϯ Ϯ Ͳ ϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/e' ϴй й Ϯ ϯϯй ϯϯй ϱϯй Ϯ Ϯ KDW Z d/e' ^ > ^ D/>Ϳ ' y ϴϭ ϭ Ϯϯϳ ϭ ϱϲ Ϯ ϯ Ϯ ϳϮ ϰ Ϯϯ ϱ ϯϱ ϲ ϳ /Es d K ϴ ϰdž ϱϯ ƵŐ Ϯϱ ^ĞƉ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ^ĞƉ Ϯ KĐƚ Ϭϲ KĐƚ KĐƚ d й ϭϱ ϭϲϭй Ϯй ϲϯ ϲϰ ϲϭ ϲϯ ϲϭ ϲϯ ϲϳ ϲϲ ϲϱ d y Z d й ϭ ϭθϳ ϱ ϭϱϭ ϯ ϭ ϯ ϮϬϲ ϮϭϮ Ϯ <>K' ϯ Ϭ ϯ ϱ Ϯ ϰ Ϯ ϯ ϭ ϴ ϭ ϲ ϭ ϲ ϭ ϱ ϭ ϱ Z Θ < s > ϰϭdž Ζϭϲ ϱϭ ϱϰ ϱϭ ϰϭ ϲ ϯ ϯ ϱ ϱ /s ' y ϰ ϰϳ Ϭ Ϳ /s 'Z Zdнй Ϳ Ϯ Ϯ ϴ ϴϴ Ϯ ϯ ϯ d Ϭ Ϭ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬϳͿ ϰϰ Ϯϴ ϯϲ ϲϱ ϲθ ϱθ ϯϱ ϰθ ϱϲ ϮϬϭϲ DW>Kz ^ ϳϭϰ Ϳ ϱϭ ϭϯ ϰϯ ^ŚĂƌĞƐ D &ůžăƚ D W^ ƵĞ ŝŷ ϭϱϯ ĂLJƐ ĞͿ K, ͲϮй D'Dd ŽǁŶƐ Ϯϳ ϭϯϭϭ ϭϭ "REAKS OUT OF WEEK CONSOLIDATION TWO WEEKS AGO REMAINS ACTIONABLE ϬϬ Ϭ Ϭ ϳϲϯ ϬϬ 3OLID YEAR GROWTH Ϭ Ͳϱ ϬϬ ' y ͲϬ ϲ Ϭ 'REAT MARGINS AND 2/% ϭϭ ϯϱ %03 GROWTH FOR NEXT TWO YEARS ϯ Ͳ Ϭ ϰ Ϭ ϯ Ϭ ϴ ϭϭ Ϭ ϳ Ϭϯ ϲ ϰ ϱ ϱ Ϯ Ϭ Ϭ 23 AT ALL TIME HIGHS ϱ ϭϰ ϰ ϱ ϰ Ϭϱ Ϭ ϭ ϭ ϯ ϱϭ ϯ Ϯ ϳ ϭ ϭϯϭ ϭ 3TEADY 23 UPTREND Ϯ Ϭ Ϯ ϰϯ Ϯ ϭϲ ϭ ϴ ϭ ϲϯ ϭ ϰθ ϮD Ϭ< ϰ Ϭ< ϮϬϬ< Ͳϭ < :ƵŶ ϭϯ ^ĞƉ ϭϯ &/E E / >^ Ϯ W^ ' yͿ ĞĐ ϭϯ Ϯ ϱϳ нϰ W^ й, E' Ϯϳ Ϯ ^ > ^ D/> ' yͿ нϭϯϯй ϭ ϱ ϳ нϯ нϯϯ ϰй D Z'/E &d Z d y нϯ нй нϯ нϰϰй нϱ нϯ нϯ нϯ нй н нϭθ Ϯй нϯϭ н ϭй н нϯϯ ϰй н нϯϯ ϯй н н нϯϭ ϴй Ͳ Ͳϱϱ >KtͲ,/', &he ^ ϯϲͳ ϭθ DĂƌ :ƵŶ ϯ Ϯϴ ^ĞƉ нй ϭ ϯϭθ ϴ ϯϲͳϰθ ϰϭͳϱϳ Π ϮϬ t/>>/ D KΖE /> н K /E ĞĐ ϰ ϱ нϳ ϭ ϰϳϯ ϴ ϰϰͳϱϯ ϯϲͳϰϰ ϰ Ϭϰ нϯϯй ϭ ϴϯ ϰ ϯϲͳϰϲ Ͳ Ϯϭ ϲ нϰ Ϯ ϱ Ϯ ϯϱͳϰϱ ϯϭͳϯ ϲ нϳϭй Ϯ ϱϳθ ϮϳͲϯϯ Ϯϱ ϮϱͲϮ ϱϲ нϲϰй Ϯ ϴϭϱ ϲ ϮϬͲϮϯ ͲϮϬ Ϯϴ ϴ ϰϱ ^ĞƉ ϭϲ нй ϯ Ϯϯϭ Ϯ Ͳ ϮϬͲ ĞĐ ϭϲ ϴ ϴϴ DĂƌ Ͳϭ ϯ ϰθϳ ϲ Ͳϯϯ ϱϱ Ͳϯϳ ϱϰ :ƵŶ ϴ ϱ нϯй ϯ ϲθϰ Ϯ ϯϭͳϯϲ ϱϲ Ͳϯϱ ϳϮ ^ĞƉ ϰϰ ϮϬ Ɛƚ ϯϲ Ϭ ϮϬϭϴ Ɛƚ Ϯϴ ϳ ϱͳljƌ,ŝőś ϱϳ ϱͳljƌ >Žǁ ǀƐ /ŶĚ ǀŐ Ϯ ϭdž ^ŵăƌƚ DĞƚĞƌŝŶŐ ^LJƐƚĞŵƐ ^D^ ' Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ KĐƚŽďĞƌ ϮϬ The value realized by the Company s existing book of business remains substantial, as these meters are normally leased to utility company customers on 20-year or greater index-linked contracts with rising annual payments. Its business model has achieved steady ROE of more than 30% over the past five years. According to the agreement, the Company is required to provide domestic smart meters in connection with a U.K government program supervised by the Department of Business Energy and Industrial Strategy and financed by its syndicated banking facility. Looking Forward The Company aims to achieve a 15% share in the U.K. smart meter ownership market by It also plans to increase its smart meter installation capacity to more than 40,000 units per month in The British government has mandated the adoption of smart meter installations across all households and businesses by 2020 in order to update its aging energy system. As of 2016, on the back of the U.K. government proposal, SMS estimated a market opportunity of approximately 50.6M meters in the domestic segment and 2.6M meters in the I&C segment. At the end of the year, SMS estimated a remaining market of 45.5M meters. Next catalyst: FY 2017 results are expected to be released on March 19,