FACTBOOK - Paris EUROPLACE

FACTBOOKParis International Financial Center

June 4th, 2018

2

I. PARIS AT THE HEART OF EUROPE

• Europe’s No. 1 business region

• At the heart of Europe

• The highest GDP in Europe

• A market of 500 million European consumers

• Europe’s highest

concentration • of Fortune 500 corporation

Paris, the Largest European business hub

PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE

Outstanding transport connections

• 3 international airports : 93 million passengers.

Paris-CDG : the 2nd busiest in Europe in terms of cargo traffic with 4 runways

• 7 TGV high-speed train stations : 19 million passengers

• 2nd European waterway platform, 3 ports along

the Seine – Paris, Rouen and Le Havre making up the 5th European port complex

• At less than 4 hours from the main European cities

• Paris-Brussels : 1h20

Paris-London : 2h15Paris-Amsterdam : 3h18

Paris-Frankfurt : 3h50

• Strategic geographical position at the

very heart of Europe - 200 million

people live within 48 hours of Paris byroad

Reach 500 Mio. Consumers within 3 hours thanks to…


Successful services hub• 892,000 businesses in the Paris Region

• Paris region No.1 in Europe and No.3 worldwide for hosting the world’s Top 500 corporate headquarters (29)

• 13,000 foreign branches employing600,000 persons

Finance & Energy• La Défense: Europe’s leading

business district and is the 3rd largest office market in the world

• Société Générale, Total, GDF Suez, Areva, Allianz, KPMG, Technip, Axa, HSBC, EDF, IBM

Leisure & Tourism• Marne-la-Vallée: Growth based

on business and leisure tourism• EuroDisney, Pierre & VacancesBiotech & Healthcare

• Biotech Valley: Home to 35,000 students and 8,500 researchers

• Genopole, Pfizer, Sanofi, Inst. G. Roussy

Creative & Digital

Industries• Paris, Saint-Denis, Issy: Mix of

startups and digital powerhouses

• France Télévisions, Bouygues, Microsoft, Galeries Lafayette

Engineering, ICT, Mobility• Paris-Saclay: A world-renowned

center of scientific research• Danone, Thalès, Safran, Nokia, HP

European industrial cluster• 1st European region by number of

employees in the fields of aeronautics and pharmaceuticals, and 3rd in the electronic and optic components sector

• The 29th least expensive city worldwide to establish a factory (vs London 36th)

Paris, the European Tech Companies Leader


• The Paris Region hosts a booming number of successful

startups thanks to our Innovation Clusters, a large numbersof Incubators, of VC’s and Open Data Programs

• Over 130,000 square meters of space for start-up

incubators have been created in recent years. By 2020,

an additional 100,000 square meters will be made

available, including the Station F - Halle Freyssinet, thelargest incubator in the world hosting 1,000 start-ups

• 1/3 of the start-ups exhibiting at the 2017 Las Vegas CESwere French, notably from Paris Region

• 1st region in Europe regarding the number of startups ofThe Technology Fast 500 EMEA

• France is 1st in Europe for tech investment in terms ofvolume and value of deals in Q3 2016

BlaBlaCar, a successful French start up has raised $160 Million from Insight, Valuing Ride

Paris Region, the #1 digital region in Europe


• Paris came 7th in a recent European ranking of business costs, ahead of Berlin (8th), Frankfurt (9th) and London

(10th), according to KPMG’s comparative cost analysis in over 100 cities

• Competitive universities (Paris-Saclay, PSL, Paris-Sorbonne) and laboratories (Genopole, Nuclear Energy

Agency…)

• An unrivaled Research Tax Credit & local authorities supporting experimentations (up to 45% of experimentation

costs covered with a cap of 170k€)

0 500 1 000 1 500 2 000

P a r i s

L o n d o n

A m s te r da m

F r a n k f u r t

S t o c k h o lm

0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 3,0 %

P a r i s

L o n d o n

A m s te r da m

F r a n k f u r t

S t o c k h o lm

0 200 400 600

P a r i s

L o n d o n

A m s te r da m

F r a n k f u r t

S t o c k h o lm

Part of the workforce

dedicated to R&D

R&D spending per

inhabitant (euros)

Number of patents per

100,000 habitants

Paris Region, the place to foster Innovation


An unrivaled Research Tax Credit & Local Authorities supporting Experimentations

30% Tax Break Up to 45% ofof R&D expenses

up to €100 millionsExperimentation costs

covered with a cap of 170k€

Paris Region, the place to foster innovation


Europe’s largest current urban renewal

project, the construction of the Grand

Paris Express metro• 200 km (130 miles) of new lines

• 68 new stations

• €28 billion of total investment in the project,

• with €23 billion exclusively for the Grand Paris Express

Other infrastructures investment• 100% fiber-optic broadband coverage by 2020

• Renovation of Paris North Station / Gare du Nord

• Express train (20 min) between Paris and CDG airport by 2023

Grand Paris, an exceptional development program


Paris region No.1 in Europe and No.3 worldwide

for hosting the world’s Top 500 corporate headquarters

» 13,000 establishments

» 27% of foreign investment

» established in the country

» 600,000 jobs

Meet your clients in Paris Region


11

II. PARIS FINANCIAL CENTER,

A BUSINESS FRIENDLY ENVIRONMENT


1. Attracting Financial Institutions and activities◆ Reducing the corporation tax from 33.33% currently to 28%.

◆ Establishing a one-stop administrative contact point for foreign firms seeking a foothold in

France.

2. Welcoming Foreign Executives and their Employees◆ Improving the impatriate tax regime through the lengthening of benefit from 5 to 8 years and the

exemption from payroll tax compensation paid to impatriates;

◆ Developing international secondary schools.

3. Enhancing infrastructures and international links◆ Rolling-out the Charles de Gaulle Express train.

◆ Accelerating the development of the Grand Paris Express, the Eole urban line and all of the

Grand Paris projects, while modernising the existing network.

4. Developing Fintechs and incubators◆ Support FINANCE INNOVATION, the Paris financial services cluster.

◆ Set up new incubators and growth accelerators dedicated to the financial sector.

◆ Support Paris EUROPLACE innovation promoting French fintechs abroad.

5. Intensifying international promotion of the Greater Paris and the Paris financial

marketplace◆ Task force to identify the needs of International financial players.

◆ Strategy featuring public bodies and private players to promote Paris.

Page 12

Brexit: Recent Measures taken by the French Government

Page 13

France UK Germany Ireland Luxembourg Netherlands

Income

tax

Source: OECD, PWC

Worldwide Tax

Summaries, Agefi.fr

1 The wealth tax designates periodic and non-periodic taxes on the use, ownership or transfer of assets. This includes taxes on real

estate assets and on net assets, taxes on transfers resulting from death, inheritance and donations, and taxes on securities ad real

estate transactions.

2. 2013 datas

Without

impatriate

scheme

With

impatriate

scheme

Effective

tax rate for

individuals

earning

€300k/year

Impatriate

scheme

(8 years)

For high earners, France offers the lowest effective tax rate


46%43%44%

38%40%

38%

24%

◆ Development support

accelerated for startups

◆ Innovation support

◆ Support for investment:

investment projects for

the future

◆ Reform of the markets

◆ of goods & services

◆ Reform of the labor

market

◆ Lower taxes

◆ & social charges

◆ Tax support for investors

◆ Tax4Business - Dedicated

tax regimes

◆ Welcome package for

foreign executives and

employees

◆ French Tech Ticket

◆ Specific education system

– international sections

An attractive locationA welcoming

environment for foreign

investors

With reforms to

support investment

◆ Highly developed

infrastructure

◆ Highly qualified workforce

◆ Lower business creation

◆ & operating costs

◆ A lot of investment

projects & opportunities

◆ An economy for startups

◆ & innovation

◆ Paris major financial

center

◆ A recognized quality of life

Page 14


France is one of the most attractive European Countries

15

Source: OECD

OECD Better Life Index 2017

France Germany Italy United Kingdom

Housing 6,9 7,1 5,4 6,4

Income 4,7 5,0 4,1 5,0

Jobs 6,8 8,2 5,3 8,0

Community 5,6 7,2 6,7 7,7

Education 5,8 7,5 4,5 6,2

Environment 6,0 7,2 3,8 6,8

Civic engagement 5,5 5,1 4,3 6,4

Health 7,9 7,3 7,7 7,8

Life satisfaction 5,9 7,9 4,1 6,9

Safety 8,2 8,8 7,0 9,0

Work-life balance 8,9 8,3 7,5 6,2


April 2018

Total wealth of households and long term savings in 2017

16

Total households wealth provides extensive investment opportunities

Source: Banque de France

STRONG FINANCIAL ASSETS FOR A LONG TERM

FINANCIAL MARKETS DEVELOPMENTS

Others saving products

(equity, bonds, saving

plans,…) ; 21%

Life insurance;

69%

Housing savings

scheme banks accounts ;

10%

Long term savings of households€2 780bn

Liquidity; 11%Contractual savings; 3%

Securities; 11%

Insurance; 15%

Real Estate; 60%

Total wealth of households€12 470bn

April 2018

French households’ outstanding financial wealth reaches 4473 billion euros in Q3 2017

17


April 2018

23%

1%

26%

6%

44%

Structure of household outstanding investments(billion euros)

Currency and deposits

Debt securities

Equity

Investment Funds

Life insurance (saving accounts)



The low French households indebtedness rate provides a wide range of opportunities

18

Source : Banque de France

April 2018

0

10

20

30

40

50

60

70

80

90

100

UK Eurozone France Germany Italy

Household indebtedness rate(% of GDP, 2017Q3)



French households savings rate, ranked 2nd in Europe, ensures a large and stable funding

source

19

Source: Eurostat, Banque de France

Gross Households saving rate is defined as

gross savings divided by gross disposable

income.

FRENCH ECONOMY : STRONG ASSETS FOR A LONG TERM


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Germany France Italy UE UK

Household saving rate(% of gross revenue, 2017Q1)

April 2018

2009 2010 2011 2015 2016

0,44

0,42

0,44

0,47

0,45

Foreign Investors: 47% of French Listed Companies

Source: AFT, Banque de France, dec.2015

Page 20

◆ 10 French companies of the CAC 40, on

a total of 35, have foreign majority

shareholders.

◆ The capital of the French companies of

the CAC 40 held by non resident

represents 44,5 % of their total capital.

◆ The net purchases of French actions of

the CAC 40 by non residents in 2016 in

the sector "oil, gases and materials"

represents 4.3 billion euros.

◆ The net sales of French actions of the

CAC 40 by non residents in 2016 in the

sector of the industries represent 3.7

billion euros.

In All, Paris is The Most Attractive Financial Center in Continental Europe

A BUSINESS FRIENDLY ENVIRONMENT FOR INTERNATIONAL

INVESTORS

◆ Paris is n°1 in Europe in terms of

◆ foreign banks and financial institutions

(500 established foreign banks and

financial institutions)

French government bonds held by

foreign investors, %

0

10

20

30

40

50

60

70

80

Q2 2

001

Q4 2

001

Q2 2

002

Q4 2

002

Q2 2

003

Q4 2

003

Q2 2

004

Q4 2

004

Q2 2

005

Q4 2

005

Q2 2

006

Q4 2

006

Q2 2

007

Q4 2

007

Q2 2

008

Q4 2

008

Q2 2

009

Q4 2

009

Q2 2

010

Q4 2

010

Q2 2

011

Q4 2

011

Q2 2

012

Q4 2

012

Q2 2

013

Q4 2

013

Q2 2

014

Q4 2

014

Q2 2

015

Q4 2

015

Q2 2

016

Q4 2

016

Q2 2

017

In All, Paris is The Most Attractive Financial Center in Continental Europe

55.5%

A BUSINESS FRIENDLY ENVIRONMENT FOR INTERNATIONAL

INVESTORS

22

III. PARIS, A HIGHLY EDUCATED

AND INNOVATIVE CITY

The French education system is very efficient and higly supported by public authorities

23

Source: Ministère de l’Enseignement Supérieur et de la Recherche

/ Finance Innovation

University2016 - 2017

Bachelor's degree 994 000

Masters degree 571 000

Doctorate 58 300

Total 1 623 500

French financial

degree :

- 222 Master

degrees

- 23 Doctoral

schools

Public Budget 2018 : 13,4

billion euros for higher

education

2,7 billion euros for student life

A TALENT DRIVEN ECONOMY

April 2018

2 French Business Schools in the European Top 5

24

Source : FT European Business Schools ranking


Rank 2017 Business School Country

1 London Business School UK

2 HEC Paris France

3 IE Business School Spain

4 University of St Gallen Switzerland

5 Insead France

6 SDA Bocconi Italy

7 Iese Business School Spain

8 Esade Business School Spain

9 Rotterdam School of Management, Erasmus University Netherlands

10 IMD Switzerland

April 2018

In 2014, 29 billion euros for higher education, multiplied by 2.6 since 1980

25Source: Ministère de l’Enseignement Supérieur et de la Recherche

Domestic education expenditure accounts for expenditure on the national

territory, by all economic agents, central and local administrations, corporates

and households, for education activities.

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014

Domestic education expenditure in higher education

(billions euros)


April 2018

France benefits from the highest level of qualification in Europe.

26

Source: Eurostat


0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

55,0

France Germany Italy United Kingdom EU

Population (25 to 34 years old) with a higher education level(%, 2017)

April 2018

French research is worldwide recognized

27

Source: International Mathematical Union (IMU)

1413

9

6

32

1 1 1 1 1 1 1 1 1 1 1 1 1 1

0

2

4

6

8

10

12

14

16

Field medals by countries


April 2018

France plays a leading role in innovation and research.

28

Source: Ministère de l’Enseignement Supérieur et de la

Recherche / OMPI / Eurostat

277 000 researchers in

France in 2015

50,1 billion euros of total

domestic expenditures in

R&D in 2016

64% for corporates

8,3 billion euros of public

expenditures for R&D in

2013 (forecast)

- 2nd world rank for Fields

Medals

- 4th world rank for Nobel

prizes in science


April 2018

France strengthens its efforts in applied research and development.

29

Source: INPI


April 2018

0

5

10

15

20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

thousands

Intellectual property Number of patent deposits

Patents by SMEs

A wide range of professionals and specialized service providers

A STRONG POOL OF FINANCIAL SKILLS

18%

2%

11%

58%

6%5%

Breakdown of third-party AM playersSource : AFG

Direct staff

Internalproviders

Externalproviders

Distribution/Sales

Custody/Auditors

Brokers

85 000

8%

33%

12%4%7%

13%

23%

Direct employement by main functions in Manco'sSource : AFG Management -

Corporate finance

Front office

Middle office -Reporting

Back office

Compliance - Audit

Sales - Marketing

IT - HR - Other

15%

26%

60%

Inf. High school + 2 years High school between 2 and 4years

Over Master degree

Education level of Manco's direct employed staffSource: AFG

29% 28%30%

13%

Inf. 5 years Between 5 and 9years

Between 10 and 19years

Over 20 years

Cumulated experience of portfolio managersSource: AFG

A high level degree of educated and skilled people

A STRONG POOL OF FINANCIAL SKILLS

Financial sector provides a significant contribution of nearly €90bn to the total value added in France

32Source: INSEE

THE IMPORTANCE OF FINANCIAL SERVICES

INDUSTRY FOR THE FRENCH ECONOMY

Value added by activityFocus on mainly market services

(2016)

Trade

Information and communication

Financial and insuranceactivities

Real estate activities

Science and technology

Other services

April 2018

Finance industry provides more than 1 million jobs

33Source: Paris Europlace

Direct employment in finance industry

Finance

Banking 483 680

Investment banks 48 250

Insurance 160 000

Financial auxiliaries 160 000

Asset Management 15 000

Private equity 3 000

Support

Lawyers, IT specialists, consultants 203 000

Total (financial sector employment in France) 1 022 680



Financial services employment in the major European financial centers

34Source: OECD / Eurostat



150

65

48,5 4838

Paris FRANKFURT AMSTERDAM LUXEMBOURG DUBLIN

35

IV. VIBRANT FINANCIAL CITY

The Paris Financial Market Place Business is driven by some decisive assets

36

The presence of large French and multinational corporations: ✓ Paris, the 1st business center in Europe, with the presence of large international companies.

✓ Paris, in the 3rd worldwide position in terms of presence of international corporates.

A Vibrant capital markets✓ Deep and sound equity Markets : €2500 bn market capitalization, €2600 bn value of equity trading.

✓ Best Access to the Euro-denominated debt market :

➢European leader for commercial paper (€520 bn)

➢A Liquid Government Securities Market (€1500 bn)

➢Paris is the leading euro-denominated corporate bond market, with nearly 30% of European

issues and over 40% of outstanding.

➢Paris is also the European leader in the high-yield market, with 20% of issues.

✓ A growing project financing contributor : France recorded 5300 deals, compared to 1800 for UK and

600 for Germany (2010-2012) .

A Strong Investors Pool: ✓More than €3000 bn of assets under management.

✓ Second largest Investment funds industry in the world, with €1500 bn of assets.

✓ A European leader in Fintech and Digital economy financing.

The Paris Financial Market Place Business is driven by some decisive assets

37

Four French banks in the top 20 within the Eurozone. ✓Equity derivatives (26% market share in Europe).

✓Structured financing (25% market share in Europe).

✓Asset management (four French firms among the top 20 management leaders

worldwide).

✓Post-trading services (three French firms among the top 10 world leaders in custody

services).

France boasts the n°1 insurance market in the EU

A worldwide recognized regulation, based on regular dialog between

professionals and regulators.

Lastly, the Paris Financial Market is fully open to global investors, ✓More than 45% of the CAC 40.

✓Paris is the second largest center in Europe when it comes to welcoming foreign banks.

Source: Fortune Global 500, 2016

Page 38

SECTOR COMPANY

AEROSPATIAL & DEFENCE AirBus

APPAREL Christian Dior

FINANCIALS AXA / BNP Paribas / Crédit Agricole

/ Société Générale / Groupe BPCE / CNP

Assurances

CHEMICALS Air Liquide

ENGINEERING & CONSTRUCTIONS Vinci / Bouygues

ENERGY EDF / ENGIE / Veolia / Total

MATERIALS Saint Gobain

HOUSEHOLDS PRODUCTS L’Oreal

FOOD & DRUG STORE Carrefour / Finatis / Groupe Auchan

FOOD, BEVERAGES & TOBACCO Danone

TELECOMMUNICATIONS Orange

TRANSPORTATION La Poste / SNCF / Air-France

MOTORS VEHICLES AND PARTS Renault, Peugeot

TECHNOLOGY Schneider Electric

HEALTH CARE Sanofi

REAL ESTATE INVESTMENTS TRUSTS Unibail-Rodamco

◆ 31 French Companies are Among 500 World Leaders in their respective Industries, compared to 29 for Germany and 24 for Britain.

Paris, the 1st business center in Europe, with the presence of large international companies

Sources: see Annex Page 39

The overall index elaborated

by Paris EUROPLACE ranks

the Continental Europe main

Financial Centers according

to various sub-indexes

between 0 and 1. An index

close to zero for a financial

center represents a low

attractiveness of the

considered dimension. A

high index indicates a

favorable position.

Indicators confirm the pole

position of the Paris financial

center as a complete and

diversified European financial

center, offering a wide range

of financial services in all

banking & financial markets :

- Equity markets,

- Euro-denominated bond

markets,

- Derivatives markets,

- Asset management and

private equity,

- Banking activities,

- Green finance center,

- Digital finance and

FinTechs.

European Financial Centers Index : Paris, n°1 in the Eurozone and n°1 in Europe

PARIS FRANKFURT AMSTERDAM MADRID BRUSSELS LUXEMBOURG DUBLIN

RANKS 1 2 3 4 5 6 7

INDEX 0,84 0,58 0,25 0,21 0,13 0,08 0,05

1. EQUITY MARKETS 0,75 0,38 0,09 0,48 0,05 0,36 0,05

Equity market capitalisation (USD, dec 2017) 1,00 0,64 0,13 0,25 0,06 0,02 0,04

Number of listed companies (dec 2017) 0,32 0,16 0,04 1,00 0,02 0,05 0,02

Share of foreign listed companies (déc 2017) 0,93 0,35 0,11 0,19 0,06 1,00 0,08

2. BOND MARKETS 0,98 0,69 0,44 0,34 0,15 0,20 0,16

Financial issues (USD, outstanding 3Q2017) 0,94 0,91 1,00 0,45 0,13 0,56 0,40

Non financial issues (USD, stock 3Q2017) 1,00 0,30 0,13 0,06 0,10 0,04 0,02

Government (USD, stock 3Q2017) 1,00 0,85 0,17 0,51 0,21 0,00 0,07

3. COMMODITIES MARKETS 0,67 0,17 0,67 0,00 0,67 0,00 0,00

Number of contracts traded (Mn of contracts, 2017) 1,00 0,10 1,00 0,00 1,00 0,00 0,00

Value of contracts traded (Mn USD, 2017) 1,00 0,40 1,00 0,00 1,00 0,00 0,00

4. OTC INTEREST RATE AND FOREX MARKETS 1,00 0,43 0,31 0,11 0,00 0,10 0,00

Trading on Forex derivative markets (USD, 2016) 1,00 0,64 0,47 0,18 0,00 0,20 0,00

Trading on interest rate derivatve markets (USD, 2016) 1,00 0,22 0,16 0,04 0,00 0,00 0,00

5. REGULATED DERIVATIVES MARKETS 0,16 1,00 0,16 0,07 0,16 0,00 0,00

Stock Options and Futures (number of contracts, USD, 2017) 0,26 1,00 0,26 0,12 0,26 0,00 0,00

Stock Index Options and Futrues (number of contracts, USD, 2017) 0,07 1,00 0,07 0,02 0,07 0,00 0,00

6. BANKING ACTIVITY 0,99 0,60 0,21 0,36 0,07 0,05 0,03

Number of banks on the Continental Europe Top 10 1,00 0,20 0,20 0,40 0,00 0,00 0,00

balance sheet size of financial and monetary institutions (Tr, EUR, mars

2017) 1,00 0,22 0,13 0,32 0,00 0,00 0,00

Resident Deposits (€bn, 2017) 0,96 1,00 0,25 0,39 0,14 0,09 0,06

Loans to households and resident companies (€bn, 2017) 1,00 0,99 0,28 0,34 0,12 0,09 0,06

7. INSURANCE PREMIUM (EUR, 2016) 1,00 0,68 0,10 0,23 0,11 0,01 0,07

8. PRIVATE EQUITY ACTIVITY 1,00 0,53 0,14 0,07 0,03 0,01 0,01

Invested amounts ( in € bn, 2017) 1,00 0,42 0,12 0,07 0,00 0,00 0,00

Nunber of SMEs funded (2017) 1,00 0,63 0,17 0,06 0,05 0,01 0,03

9. ASSETS UNDER MANAGEMENT ACTIVITY (EUR, 2015) 1,00 0,50 0,33 0,07 0,05 0,03 0,02

10. JOBS IN FINANCIAL AND INSURANCE SECTOR (Main City) 1,00 0,42 0,19 0,14 0,08 0,17 0,08

11. SIZE AND DYNAMISM OF THE ECONOMY 0,70 1,00 0,23 0,36 0,14 0,04 0,11

GDP per capita (PPA) (€, 2017) 0,39 0,46 0,48 0,33 0,44 1,00 0,66

GDP (€bn, 2017) 0,70 1,00 0,22 0,36 0,13 0,02 0,09

GDP average growth (2010-2017) 0,19 0,32 0,20 0,11 0,21 0,49 1,00

12. RESEARCH AND TRAINING 0,89 0,53 0,14 0,30 0,02 0,00 0,10

R&D spending 0,66 1,00 0,16 0,16 0,05 0,01 0,05

Number of Field medals 1,00 0,10 0,00 0,00 0,00 0,00 0,00

Number of MBA on the Global Top 100 FT ranking (2016) 1,00 0,50 0,25 0,75 0,00 0,00 0,25

VIBRANT CAPITAL MARKETS THE EUROZONE EQUITY LARGEST STOCK MARKET

Total Market Capitalisation€8,5 billion of total market capitalisation

EUROPE STOCK MARKETS

Others; 6%

Deutsche Börse; 23%

Nasdaq OMX; 16%

BME Spanish;

9% EURONEXT

46%

MARKET

CAPITALISATION(€bn, dec. 2016)

Others; 3%

Deutsche Börse; 29%

Nasdaq OMX; 16%

BME Spanish;

15%EURONEXT

38%

EQUITY TRADING(€bn, dec. 2016)

Source: WFSE, dec. 2017

Page 40

◆ Paris is an access to the largest Eurozone stock exchange, in terms of market capitalization, equity trading, and number of listedcompanies.

Deep and sound equity Markets : €3600 bn market capitalization, €2600 bn value of equity trading

France; 45%

Germany; 14%

Italy; 10%

Netherlands; 6% Others; 25%

France in 3nd position worldwide for International Corporate bonds issuance

France Leads EuropeanInternational Corporate Bond Markets

(% total outstanding)

Source: BIS and AFME, 3Q17

Source: BIS, 3Q16

Countries Amount Outstanding

($, bn)

United State 6 088

China 2 755

France 724

Japan 723

United Kingdom 526

Others 2 455

TOTAL 13 271

Page 41

◆ With a 45% market share,

◆ Paris ranks 1st in Continental Europe in

corporate bonds.

Paris, the Largest Euro-denominated Bond Markets in Europe

42


Bonds play a major role in the financing of NFCs in France

-10

0

10

20

30

40

50

60

AT BE DE FI FR IT LU NL PT

NFC bonds net flows (bn €)

2012

2013

2014

2015

2016

2017

April 2018

Page 43

◆ The Paris OTC derivative market

is growing rapidly supported by the

global strength of the French banks.

France Germany Netherlands Luxembourg SPAIN

181

116

85

37 33

F r a n c e G e r m a n y N e t h e r l a n d s S p a i n L u x e m b o u r g

141

3122

60

OTC Forex Market Turnover (in €bn/day)

OTC Interest rate Market Turnover (in €bn/day)

FRANCE

FRANCE

Paris ranks 1st in Continental Europe for forex and interest rate derivatives and 3rd in the world

Five French Banks in Continental Europe Top 10 Largest Banks

◆ 5 French banks in Continental Europe top 10 banks representing a total assets of €6.3tn.

Source: Balancesheet, end 2017

THE BANKING INDUSTRY

Rank Bank Country Total Assets (€billions)

1 BNP Paribas France 1,960

2 Crédit Agricole France 1,550

3 Deutsche Bank Germany 1,475

4 Banco Santander SA Spain 1,444

5 Société Générale France 1,275

6 Groupe BPCE France 1,259

7 ING Groep NV Netherlands 846

8 Unicredit SpA Italy 836

9 Banco Bilbao Vizcaya Argntina SA Spain 690

10 Crédit Mutuel Group France 710

Page 44

Paris is the European largest banking center in Europe

45

Loan flows to non-financial corporations (million euros)

Source : Banque de France

Bank financing to corporates is one of the most dynamic among European major countries

April 2018

-30000

-20000

-10000

0

10000

20000

30000


585 670 748 923

1025

1114

1185

1125

1277

1403

1381

1516

1577

1822

1904

1971

2066888

10161050

1164

1329

1544

1594

1384

1523

1514

1387

1509

1543

1599

1689

1799

1929

1473

16861798

2087

2354

26582779

2509

28002917

2768

3025

31203421

3593 3770 3995

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

French domiciled funds

Mandates (inc. Foreign funds)

Source: EFAMA/ AFG/ CSSF, end 2015

France Asset Management Industry (€ billion)

◆ The Paris asset management industry

is based on decisive assets, with

more 630 asset management companies,

among them 4 asset managers are in the

top 25 global ranking and 3 global

custodians in the top 10 global ranking

France ; 27%

Germany; 15%

Italy; 8%

Netherlands; 9%

Switzerland; 11%

Others; 30%

Source: EFAMA/ AFG/ CSSF, end 2015

France in the European Asset Management Industry

€15,000 bn of asset under management in Europe

ASSET MANAGEMENT INDUSTRY

Paris, the largest asset management pool in Europe

A WELL-DIVERSIFIED SUPPLY OF INVESTMENT FUNDS


Equity

18,4%

Balanced

18,1%

Formula-

based 1,3%

Bonds

14,6%

Money

Market

17,8%

Alternative

0,4%

Real Estate

7,2%

Venture

Capital

3,5%

Employee

saving

schemes

6,8%

Securitizatio

n Vehicles

11,9%

French domicilied funds(1,929 €bn at end 2017)

United Kingdom

36%

France 18%

Germany9%

Switzerland7%

Netherlands6%

Italy5%Others

19%

Market share in the European asset management industry

€21,500 billion at end December 2015 (Source : EFAMA)

FRANCE, A PLACE WITH COMPETITIVE GLOBAL PLAYERS

Nationality of the headquarterNumber of

companies

France 4

United Kingdom 2

Germany 2

Switzerland 1

Netherlands 1

Nationalities of the 10 largest European

asset managment companies

Source: Willis Towers Watson - at end 2015


TOTAL

FranceEuro-zone (excl.

France)

OECD (excl.

Euro zone)

Rest of the

world %

Securities 41% 41% 17% 2% 100%

Source: Banque de France and AFG estimates * Not including cash, structured products, derivatives…

Breakdown of securities* held by asset managers in France (mandates and funds)

(At end December 2015)

Bonds, Monetary

instruments, equities

Géographical origins of the issuer

French AM, an essential funding source for French and Euro-zone economies

TOTAL

States and

Public sector

Financial

institutions Corporates Other %

Securities 34% 30% 34% 2% 100%

Source : Banque de France and AFG estimates * Not including cash, structured products, derivatives…

Assets managers' portfolios: securities* allocation by category of issuer

(At end December 2015)

Bonds, Monetary

instruments, equities

Category of issuers

SUEDE

CHINE

BRESIL

USA

$ 2.5$ 2.6

$ 7.5

$ 2.7

$ 13.2

HIGHLIGHTS OF THE PARIS GREEN & SUSTAINABLE FINANCE INITIATIVE REPORT

FRANCE,A PIONEER IN THE GREEN BONDSINTERNATIONAL MARKET

1.9$ BN

13.2$ BN

2013

2017

x7

TOP 5 COUNTRIES ISSUERS OF GREEN, SOCIAL & SUTAINABILITY BONDSOn 1st June 2017 in billions of US dollars Source: Bloomberg

EVOLUTION OF THE FRENCH MARKET OFGREEN, SOCIAL & SUSTAINABILITY BONDSSource: Bloomberg

France:

€148 bn invested byFrance Investmembers in 1 600companies everyyear on average forthe last 20 years

France:

4.000 private equity professionals

€150 bn under management (end 2017)

France:

€14.3 bn invested in 2017

Europe:

€730 bn invested by InvestEurope members in morethan 5 500 companies everyyear on average since 2000

€53,4 bn invested in 2016

United Kingdom:


Germany:


PRIVATE EQUITY

The French private equity, a leading industry in Europe

Sources: France Invest, Invest Europe

* Data available for 2016

PRIVATE EQUITY

The French private equity, a leading industry in Europe

Sources: France Invest, Invest Europe, NVCA, AIC

Number of private equity-backed companies (2017)

Europe* France Germany* United Kingdom*

6 164

2 142

1 103577

PRIVATE EQUITY

The French private equity industry mostly finances growth projects

Sources: France Invest, Grant Thornton

Venture Growth Buy-out Turnaround

39%

44%

16%

1%

Weight of number of companies invested by segment (2017)

PRIVATE EQUITY

The French private equity industry shows a strong overall performance

Sources: France Invest, Grant Thornton

Amount invested (€ bn)

201720162012 2013 2014 2015

Number of private equity-backed companies

€14,3 bn 2 142

€6,1 bn €6,5 bn

€8,7 bn

€10,7 bn

€12,4 bn

1 548 1 5601 648 1 645

1 893

201720162012 2013 2014 2015

As they prove profitable, banks and insurance companies play a key role for corporates’

financing

55Source: Banque de France, FFA

French Insurance Market(Premiums, in € billion)

120135 131

73

75 76

2015 2016 2017Non Life Insurance

Life Insurance

193207

210

INSURANCE MARKET

56

French insurance companies benefits are moving steadily upwards

Source : FFA

120108 106 112 118 124

14

15 1516

1718

35

36 3737

4039

2012 2013 2014 2015 2016 2017

Life Insurance Accident and health insurance Property and casuality insurance

INSURANCE MARKET

59% of French insurers investments are dedicated to Euro area corporates

57

Source : FFA - GEMA

Insurers long term corporate financing(2017)

A MAJOR ROLE OF THE FRENCH INSURANCE COMPANIES

€2 433 bnInvested in the

French economy

in 2017

61% Corporate

Assets

4%Real Estate

18%Equities

39%Bonds

€1 437 bn

€70 bnIn SME’s

+€33 bnIn corporate

assets compared

to 2016

The trend of insurance investments in French corporates is steadily upwards

58Source: FFA

€ 1 363 bnInvested in

companies

+€14bn/ 2016


44%

56% 61%

30%

3%6%

Corporate assets

State's Bonds

Money MarketOther

Foreign

French

Source: FFA

Insurance companies investments in the French economy in 2016

1 676

bn€Of outstanding

life insurance

+3%

633Bn€

others

(damage provisions,

shareholders equity &

Valuation of assets)

2 433

bn€Of insurers

investments

+6%

59


60

Insurance MarketTurnover, in € billion

French insurance leads the EU

INSURANCE MARKET

European reinsurance playersTurnover, in € billion

61

FRENCH INSURANCE STRONGLY INTERNATIONALIZED

Turnover realized in 2016 : €115 bn wich represents 31% of the total turnover

17%North America

6%Latine America

2%Africa and Middle East

50%In EU

(except France) 12%Europe (except EU) 13%

Asia

Turnover distribution in Europe

1. Italy €18.4 bn

2. Germany €12.3 bn3. United Kingdom €6.5 bn

Source : FFA (decembre 2017)

The quality of French supervision ensures a safe environment

62Source: Banque de France

European

Securities and

Markets Authority

(ESMA) Paris

Banque de France (BDF) /

Prudential Supervision and

Resolution Authority (ACPR)

OPEN AND SECURED MARKETS

European

Banking

Authority

(EBA) Paris

Financial Markets

Authority (AMF)

Single

Supervisory

Mechanism

(SSM)

◆ Against the backdrop of the Single

Supervisory Mechanism and the European

System of Financial Supervision, the

quality of French supervision ensures a

safe environment

Eurosystem payment system Target2 ensures safety and efficiency

63

Banks

Ancillary system

cash transfersettlement


OPEN AND SECURED MARKETS

64

A EUROPEAN LEADER IN FINTECH AND DIGITAL ECONOMY

FINANCING

Page 64 SOURCE: Fintech working

group

Access to

talent pool

MarketAccess to

capital

FinTech

firms

Regulation and

infrastructures

• Paris boasts excellent expertise (44% of 25-34 years old were university-educated in 2013 vs.

30% in Germany)

• Paris hosts a dynamic ecosystem (the largest incubator in the world is set to open in La Halle

Freyssinet in 2017, with over 1,000 start-ups)

• Market demand and depth:

– Use of French online

banking services in

2014 (58%) is higher

than in Germany (49%)

and equivalent to the

UK (57%)

– Some Fintechs have

already demonstrated

the appeal of the French

market (e.g. Younited

Credit)

• Regulatory environment and infrastructures:

– The AMF's AGiLITY program provides bilingual coaches and a two-week ticket for companies already approved outside

France

– Approval to operate in Paris is a major growth driver for Fintechs in the EU, as demonstrated by Younited Credit

– France offers a highly innovation-supportive environment (e.g. the Research Tax Credit, a 30% tax deduction on R&D

expenses)

– Paris offices are, on average, twice as cheap as in London, with double the space

• Access to capital :

– Investments in Fintechs

experienced strong

growth between 2014

and 2015 (+ 102%), led

by the top 10 French VC

funds

– Moreover, the presence

of strategic buyers offer

output options to

Fintechs based in

France (e.g., Arkea,

Banque Populaire)

Paris, the European Leader in High-Tech and Fintech Startups

65

Paris offers a Dynamic FinTech ecosystem

A EUROPEAN LEADER IN FINTECH AND DIGITAL ECONOMY

FINANCING

66

PARIS FINANCIAL CENTER HIGH TECH FINANCING ORIENTED

32

15

4 3 3 2 1 1 1 1

0

5

10

15

20

25

30

35

Fund raised in millions by French Tech companies

French Tech start up financing

67

V. STRONG AND RESILIENT ECONOMY

France is the 2nd largest economy within the Eurozone

68

Source: Eurostat

FRANCE A STRONG AND RESILIENT ECONOMY

France Euro zone

Population (2017) 67,1 million 341,0 million

Inflation rate

(2017)

+1,2 % +1,5 %

Gross Domestic

Product

(2017 billion euros)

2 287,6 11 165,5

GDP per capita

(2017, euros)

34 100 32 700

Number of

corporates (2015)

3 492 052 18 463 349

Fertility rate (2016) 1,92 1,58

R&D expenditures

(% of GDP, 2016)

2,2 % 2,1 %

FDI

(% of GDP, 2015)

1,6% 3,0 %

April 2018

Labour productivity in France is increasing and is the highest among major European

countries.

69

Source: OECD, Eurostat, Insee


0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Gross Domestic Product / Total hours worked


April 2018

French Economy is attractive for FDI in Europe

70

Source: OECD


April 2018

0

10 000

20 000

30 000

40 000

50 000

2012 2013 2014 2015 2016 2017

Foreign direct investment in France(billions euros)


Inward Foreign Direct Investment (FDI) flows divided by gross domestic

product (GDP)

0

1

2

3

4

5

6

7

8

France Germany ItalyUnited Kingdom EU

Foreign direct investment intensity(2015-2016 Mean, % of GDP)

Attractive Energy prices for corporates, thanks to a good production control and an effective distribution network

71

Source: Eurostat

Price of energy(all taxes included)


0,00

0,05

0,10

0,15

0,20

0,25

Electricity(euros/Kwh)

France Germany

Italy United Kingdom

EU

0

4

8

12

16

20

Gas(euros / gigajoule)

France Germany

Italy United Kingdom

EU

April 2018

Information technology has grown considerably for the last few years in France

72

Source : OECD

OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, June 2017


0

10

20

30

40

50

France Germany United Kingdom Italy

Total

0

10

20

30

40

France Germany United Kingdom

Italy

DSL

0

1

2

3

4

5


Italy

Fibre

0

2

4

6

8

10


Italy

Cable

April 2018

www.paris-europlace.com

@ europlace

Paris EUROPLACE

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