Long MF FP & Short BVI FP+SGO FP

EUROPEAN HOLDING COMPANIES May 19, 2016 EUROPEAN HOLDING COMPANIES: Long MF FP/Short BVI FP+SGO FP – Exit & take profit We recommend to take profits and exit the +Wendel/-Saint Gobain, - Bureau Veritas trade which we recommended on April 1 (see our note below). As can be seen in the graph below since the beginning of April Wendel share is up approx. 8%, while SGO FP share is down ~3% and BVI FP is down ~1%. Discount to NAV has tightened to ~25% up from ~33% following two important announcements earlier this month: 1) The merger of AlliedBarton/Universal Services; 2) The partial disposal of Saint-Gobain stake - Wendel sold 30m shares which reflect 5.3% of the share capital, and generated cash income of approx. EUR 1.6b. This results with a reduction in the LTV ratio from 30%-35% to approx. 20% and lower cost of debt. In addition, it provides the company with more room for future investments. On the other hand, it also lowers the portion of the listed assets to approx. 50% down from approx. 60% prior to the disposal. On the back of markets volatility, we recommend investors to take profit and re-set the trade when the next opportunity arise. MF FP share performance vs. SGO FP and BVI FP since April 111 109 107 105 103 101 99 97 95 MF FP BVI FP SGO FP April 1, 2016 EUROPEAN HOLDING COMPANIES UPDATE: Long MF FP/Short BVI FP+SGO FP This is an update to our prior report on Wendel (MF: FP) from March 2, 2016 following the company’s 2015 results yesterday. Wendel reported solid results with strong performance in all the group’s principal companies. Main key points are: Makor Securities Makor Capital Makor Capital Markets Makor Securities London Ltd Rogovin Tower Makor Securities London Ltd Makor Securities London Ltd 7/8 Savile Row 2nd Floor Menachem Begin 11 (Geneva Rep Office) (Paris Rep. Office) London W1S 3PE, ENGLAND 52689 Ramat Gan, ISRAEL 27 rue de la Croix-d’Or 51 rue Francois Premier +44 207 290 5777 +972 3 545 3777 1204 Geneve, SWITZERLAND 75008 Paris, FRANCE +41 223 106 916 +33 1 42 99 69 41 1