Strong position in Europe

Under the brand name Exane BNP Paribas, created in 2004 following the partnership with BNP Paribas, Exane provides institutional investors with a range of services, such as research, distribution and execution on European equities.

Having carved out a leadership position in France, Exane BNP Paribas is in the process of establishing itself as a European player as well. The group has offices in eight financial capitals: Paris, London, Geneva, Frankfurt, Milan, New York, Singapore and Zurich. The equities research team, which comprises 90 analysts and support staff in Paris and London, covers 400 companies across Europe, 60% of which are non-French. The 130-strong sales, sales trading and trading teams cater to over 1000 institutions worldwide.

A research driven business
Research is the key to Exane BNP Paribas' cash equity business, as the segment's budget of roughly EUR60m attests. Research quality is maintained by recruiting top-flight analysts and by giving priority to pertinent recommendations and methodology (valuation, investment case). This ongoing effort has paid off both in the eyes of our clients and in the group's consistently excellent rankings in French and European investor surveys.

The cash equity business is a product of the original partnership with BNP Paribas, the terms of which grant Exane exclusive rights on European equities, with BNP Paribas contributing to the financing of research. Both companies work together closely in the Equity Capital Market (ECM) segment: BNP Paribas handles origination and Exane BNP Paribas distribution.

Exane has built a structurally profitable cash equities business despite the relentless pressure besetting the industry (Exane's NBI in 2006 was at the same level as in 2000 whereas the industry's was 40% lower). The group's clients are thus secure in the knowledge that the group will continue to invest in its European business throughout the cycle.

Highlights
As part of the group's efforts to expand its European coverage capacity, Exane BNP Paribas has strengthened its platform in London by adding research and distribution staff. The Paris- London axis is thus, more than ever, the engine driving the European strategy. At the same time, the group continued to extend its coverage of continental Europe (notably in Italy and Germany).

In 2006, the "Key Ideas" of Exane BNP Paribas analysts, around ten to fifteen European equities with pivotal mid/long-term recommendations, rose 19.5%, outperforming the Euro STOXX 50 by more than eight points.

All Exane BNP Paribas research is available to our clients on www.exanebnpparibas.com, as well as on Bloomberg (), Multex, First Call and Reuters (RBR).