Musterfolien zur Vontobel-GruppeFOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Global Value Investing
Thomas P. Wittwer
Member Investment Review Committee
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Fund Managers’ Dilemmas
Active vs. Passive
Bottom-up vs. Top-down
Risk vs. Reward
Growth vs. Value
Concentrated vs. Diversified
Long-term vs. Short-term
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
What Really Matters: The Importance of Capital Preservation
Investment opportunities come again and again, but your principal comes only once!
It is not about how much money you make that is important. What is important is how much money you keep!
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
€100.000
€50.000
€100.000
€25.000
-50 %
-75 %
-50 %
100 %
-75 %
300 %
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
The Power of Compounding
5%
10%
15%
20%
$ 432,194
$ 1,744,940
$ 6,621,177
$ 23,737,631
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
The Magic of Compounding
Albert Einstein: “Compound interest is the greatest invention of modern times!”

Rule 72 shows how long it will take to double your money. Divide 72 by the interest rate/portfolio return you’ll earn on your investment.
Example: A 6% investment
72 divided by 6% = 12 years
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
The Power of Compounding: Time is Your Greatest Ally!
The miracle of compounding depends on the passage of time.
For instance, of the increase in the value of a 10% compounding portfolio held for 20 years, 11% of the total gain occurs in the first five years, 17% in the second five years, 28% in the third five years and fully 46% occurs in the final five years!
11%
17%
28%
46%
$672
$418
$259
$161
$0
$100
$200
$300
$400
$500
$600
$700
0
5
10
15
20
Year
Gain $572
Original $100
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Long-term Compounding: Vontobel Advantage
Source: Vontobel Asset Management, Inc., GIPS compliant composites. For full details on the composites and impact of fees please see full composite disclosure at the end of presentation.
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Are All Rational Investors Value Investors?
Many Ways to Speculate…
“Engagement in risky business transactions on the chance of quick or considerable profit”
Webster’s Dictionary
Speculation may be rational, but it carries more risk with it
You may profit but if unsuccessful, you may lose part of your principal
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Are All Rational Investors Value Investors?
… But only one way to invest
“An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.” Benjamin Graham
You ensure safety of principal by doing your homework and establishing intrinsic value
“Satisfactory” return is left undefined
Margin of safety also required
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Margin of safety
"[To] have a true investment, there must be a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience."
– Ben Graham
True Value
Your Cost
Potential profit
Your Risk
Lower
$1.00
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Is the Difference between Growth and Value Both Exaggerated and Misunderstood?
Most academic studies use low P/E or low Price-to-Book as a proxy for value and high P/E or high Price-to-Book as a proxy for growth.
These metrics are not necessarily reflective of Growth and Value: a stock selling at 15x 2005 Earnings can be cheaper than a stock selling at 7x 2005 Earnings; it depends on Future Value added.
Example: Ford Motor vs. Wrigley’s
Companies have long life cycles and only a small portion of a company’s value is captured in any one year’s earnings.
Also, a company could generate high growth in sales and actually destroy value if the firm’s cost of capital exceeds the rate of return it earns on new capital employed.
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Is the Difference between Growth and Value Both Exaggerated and Misunderstood?
“In our opinion, the two approaches are joined at the hip: Growth is always a component in the calculation of value.” Warren Buffett, 1992 Annual Report
“The whole concept of dividing it up into "value" and "growth" strikes me as twaddle. It's convenient for a bunch of pension fund consultants to get fees prattling about and a way for one advisor to distinguish himself from another. But, to me, all intelligent investing is value investing. That's a very simple concept. And I don't see how anybody could really argue with it. “ Charlie Munger, 2000 Berkshire Hathaway AGM
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
The Value of Growth in Value Investing
“Growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive.”
“Business growth per se, tells us little about value. It’s true that growth often has a positive impact on value, sometimes one of spectacular proportions”.
Every stock is worth the present value of its future free cash flow.
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Summary: How To Invest?
Absolute mindset and long term focus (“power of compounding”)
Growth and value are indeed joined at the hip
Growth creates more value as long as the return on capital exceeds the cost of capital (“Profitable Growth”)
Beware of overpayment risk (“Margin of Safety):
“Its far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Best Businesses To Own …
Have production advantages (outperform on the cost side – economies of scale)
Have consumer advantages (habit, experience, high switching cost)
Have government related advantages (subsidies, tariffs, quotas, environmental regulation)
The best businesses to own are those that can employ large amounts of incremental capital at very high rates of return
Desirable companies can pay out cash to shareholders even as they fund their growth
Most high return businesses need relatively little capital
Conduct a fundamental analysis of the stock
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Businesses to Avoid …
Have no pricing power
Constant upgrading needed ( low free CF)
Generally, high debt levels
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Bottom-up Investing – Finding the Right Company
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
In Search of Investments
Quality Business
Conservative forecasting
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Bottom-up Investing – Finding the Right Company
Screening for quality: Consistency and Profitability
Bottom-up research: Predictability and Sustainability
Valuate: Margin of Safety
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Finding The Right Company – Four Companies
World’s 2nd largest producer
of cars and trucks, also
has automotive financing
fares, primarily for short-haul, point-to-
point flights
Share price $36.43
Book Value $6.11
Market cap $74bn
LTD to Cap 31.8%
STD to Cap 6.0%
HKE operates the only stock exchange and futures exchange in Hong Kong and their related clearing houses.
Share price HK$252.6
Book Value HK$4.93
Market cap $34.9bn
LTD to Cap 0%
STD to Cap 0.02%
Source: Factset and Bloomberg
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Screening for Quality: Sound Financials, Established Profitability
Source: Vontobel Asset Management, Inc., Bloomberg, Standard and Poors
Net income > $50 million (in millions)
-$12,165
$499
£1,898
HK$2,518
Low to moderate leverage LTD to capital STD to Cap
39.8% 22.7%
11.6% 0.91%
31.8% 6.0%
0% 0%
2006: -85% 2005: 9.2% 2004: 24.7%
2006: 7.4% 2005: 8.8% 2004: 6.2%
2006: 28.1% 2005: 26.8% 2004: 24.7%
2006: 57.9% 2005: 33.0% 2004: 18.8%
High return on assets (ROA)
2006: -4.5% 2005: 0.5% 2004: 1.0%
2006: 3.6% 2005: 3.8% 2004: 3.0%
2006: 10.3% 2005: 9.6% 2004: 15.4%
2006: 8.0% 2005: 6.0% 2004: 5.1%
High long term rates of return on retained earnings (5 years)
-29.5%
-1.6%
32.5%
230.8%
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Bottom-up Research:
Understandable Business
Pricing Power
Competitive Advantage
 
 
 
 
 
 
 
 
 
 
 
 
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Valuate: Margin of Safety
Source: Vontobel estimates, detailed calculation at the end of presentation
Assuming a 5-year constant growth rate of 10% (vs. 19% actual during prior 5-years), terminal multiple of 16.7 for year 5 earnings and discount rate of 6%
Assuming a 5-year constant growth rate of 15% (vs. 25% actual during prior 5-years), terminal multiple of 16.7), discount rate of 6%
Current Stock Price
GBP 33.621)
HK$ 136.512)
47%
Nil
Upside
89%
Nil
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Portfolio Manager’s Decision
Predictable Profits
Attractive Valuation
Progressive dividend policy over the last years
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Value creation by investing capital at rates of return that exceed their cost of capital,
value according to VAMUS calculation
Source: Factset
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
437
818
913
999
975
1104
774
711
782
ANGL
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
VONTOBEL GLOBAL EQUITY EX US FUND
The Top Ten Holdings are based on a representative portfolio, and are shown as supplemental information to the
Global ex US Equity Composite presentation, which is available upon request.
Top ten holdings per 09/30/07:
British American Tobacco Plc 4.7%
Bharti Airtel Ltd. 4.7%
HDFC Bank Ltd 4.7%
Roche Holding AG 3.6%
Canadian Natural Resources 2.5%
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Bharti Airtel Ltd
Part of Bharti Enterprises, largest manufacturer and exporter of telecom terminals
Offers also access, long-distance and broadband services to consumers as well as corporate enterprise services
Dominates the Indian wireless sector with a leading subscriber market share of 21.5%
Wireless sector in India is the fastest growing wireless market in the world adding 6.5m subscribers per month
Well positioned to benefit from strong wireless growth which is being driven by rising discretionary incomes and price deflation
Tariffs in India one of the lowest in the world
EPS 3 year compound annual growth rate 89%
Market capitalization INR 1,935bn (USD 49bn), Est 03/2008 P/E Ratio 30
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Bharti Airtel Ltd
No dividends have been paid yet
Value creation by investing capital at rates of return that exceed their cost of capital,
value according to VAMUS calculation
Chart4
3/2002
3/2003
3/2004
3/2005
3/2006
3/2007
90
91
92
93
94
95
96
-14517
97
1871
98
5503
99
(2,595)
2000
26,915
2001
60,787
2002
52,786
2003
52,211
2004
20,507
COMFOR
91
92
93
94
95
96
97
98
99
3/2000
3/2001
3/2002
-2,918
3/2003
-8,039
3/2004
-2,983
3/2005
3,529
INFOSYS
90
91
92
93
94
95
96
97
-8258
98
-11724
99
-11032
00
-15225
01
-18604
02
-19693
03
-17035
04
-17224
05
-19083
06
-17102
Year
PTT
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
97
98
99
2000
2001
2002
2003
26
2004
105
2005
87
0
0
0
0
0
0
WDC
0
0
0
0
0
0
WOW
91
92
93
94
95
96
97
340
98
180
99
183
2000
(304)
2001
48
2002
238
2003
338
2004
439
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500180-in
Year
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
Year
103
199
397
1219
1730
4598
5768
6574
7921
13410
97
98
99
3/00
3/01
3/02
3/03
3/04
3/05
3/06
3/2007
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
(9,481)
2000
2,556
2001
174,881
2002
149,337
2003
151,793
2004
159,066
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
CAGR
10.52%
Year
91
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
0
0
0
0
0
0
CAGR
0.00%
1
1
0
91
92
93
94
95
96
(114,987)
97
(388,662)
98
(965,971)
99
1,887,642
2000
4,496,197
2001
(1,419,808)
2002
2,057,553
2003
(1,271,131)
2004
(2,752,763)
2005
(669,310)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CAGR
23.19%
not all 2007 numbers available yet, may 15, 2007 (EPS still estimate)
Year
91
92
93
94
95
96
-717,633
97
-791,924
98
-1,132,892
99
-1,054,122
2000
-355,996
2001
295,878
2002
2,209,631
2003
2,415,189
2004
3,395,440
2005
5,053,914
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Earnings per share
91
92
93
94
95
96
97
160
98
195
99
175
2000
211
2001
309
2002
404
2003
439
2004
512
2005
595
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
-14517
97
1871
98
5503
99
(2,595)
2000
26,915
2001
60,787
2002
52,786
2003
52,211
2004
20,507
COMFOR
91
92
93
94
95
96
97
98
99
3/2000
3/2001
3/2002
-2,918
3/2003
-8,039
3/2004
-2,983
3/2005
3,529
INFOSYS
90
91
92
93
94
95
96
97
-8258
98
-11724
99
-11032
00
-15225
01
-18604
02
-19693
03
-17035
04
-17224
05
-19083
06
-17102
Year
PTT
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
97
98
99
2000
2001
2002
2003
26
2004
105
2005
87
0
0
0
0
0
0
WDC
0
0
0
0
0
0
WOW
91
92
93
94
95
96
97
340
98
180
99
183
2000
(304)
2001
48
2002
238
2003
338
2004
439
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500180-in
Year
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
Year
103
199
397
1219
1730
4598
5768
6574
7921
13410
97
98
99
3/00
3/01
3/02
3/03
3/04
3/05
3/06
3/2007
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
(9,481)
2000
2,556
2001
174,881
2002
149,337
2003
151,793
2004
159,066
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
CAGR
10.52%
Year
91
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
0
0
0
0
0
0
CAGR
0.00%
1
1
0
91
92
93
94
95
96
(114,987)
97
(388,662)
98
(965,971)
99
1,887,642
2000
4,496,197
2001
(1,419,808)
2002
2,057,553
2003
(1,271,131)
2004
(2,752,763)
2005
(669,310)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CAGR
23.19%
not all 2007 numbers available yet, may 15, 2007 (EPS still estimate)
Year
91
92
93
94
95
96
-717,633
97
-791,924
98
-1,132,892
99
-1,054,122
2000
-355,996
2001
295,878
2002
2,209,631
2003
2,415,189
2004
3,395,440
2005
5,053,914
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Earnings per share
91
92
93
94
95
96
97
160
98
195
99
175
2000
211
2001
309
2002
404
2003
439
2004
512
2005
595
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-3256
-9247
-4010
2445
9094
24140
ANZ
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
90
91
92
93
94
95
96
-14517
97
1871
98
5503
99
(2,595)
2000
26,915
2001
60,787
2002
52,786
2003
52,211
2004
20,507
0
0
0
0
0
0
0
HSBC
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
3/00
3/01
3/02
-3,256
3/03
-9,247
3/04
-4,010
3/05
2,445
KT&G
in INR
90
91
92
93
94
95
96
97
-8258
98
-11724
99
-11032
00
-15225
01
-18604
02
-19693
03
-17035
04
-17224
05
-19083
06
-17102
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
97
98
99
2000
2001
2002
2003
26
2004
105
2005
87
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
510
98
395
99
406
00
(36)
01
309
02
529
03
664
04
838
05
672
06
961
Year
in MYR
Genting Berhad
Source: Factset
500180-in
Year
90
91
92
93
94
95
96
97
-1357
98
-2175
99
-1829
00
-1575
01
-2291
02
-1629
03
-1345
04
-1152
05
-1436
Source: Factset
Source: Factset
Source: Factset
in HKD
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
Year
103
199
397
1219
1730
4598
5768
6574
7921
13410
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
91
92
93
94
95
96
97
98
99
(9,481)
2000
2,556
2001
174,881
2002
149,337
2003
151,793
2004
159,066
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
#REF!
1
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Canadian Natural Resources Ltd.
One of the largest independent oil & gas exploration and production companies in Canada
Focusing on exploration, development & production
Operates in Western Canada, the U.K. portion of the North Sea and Offshore West Africa
One of the best Oil Sands assets in the world
Have over 20m acres of territory, 7m of which where they are already operating and the other 13m where they haven’t even explored yet
High insider ownership
Well run company with solid long term track record
EPS 10 year CAGR 32.1%
Estimated 12/2008 P/E Ratio 17.4
Market Capitalization CAD 40.7bn, USD 41.8bn
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Canadian Natural Resources Ltd.
Value creation by investing capital at rates of return that exceed their cost of capital,
value according to VAMUS calculation
Chart1
00
01
02
03
04
05
06
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
in GBP
CAGR
53.82%
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
in CAD
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
in EUR
Enagas S.A.
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
Imperial Tobacco Group Plc
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
in m INR
Infosys Technologies Ltd.
Total Shareholders' Equity
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
in CHF
-59
-182
-72
421
82
-114
-34
524
976
1192
Alu
98
-888
99
-334
00
193
01
-2504
02
-2428
03
-922
04
85
05
-127
06
-485
Year
BATS
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CAGR
32.12%
97
-59
98
-182
99
-72
00
421
01
82
02
-114
03
-34
04
524
05
976
06
1192.0
Year
in CAD
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Principal activities are to provide banking and other financial services
Operates through 3 segments: Retail banking, Wholesale banking and Treasury services. Incorporated in 1994 and headquartered in Mumbai
Track record in India as well as in international markets
Healthy growth to remain the market leader in mortgages
Wide network of over 535 branches and 1,323 ATMS across 228 cities in India
One of the best-run banks in Asia (named as “Best Bank” in India in 2006 by Euromoney magazine)
Ventured successfully into other businesses like Life and Non-life insurance
Maintains one of the best asset quality with high ROE
EPS 8 year compound annual growth rate 31.5%
Book value per share 8 year compound annual growth rate 36.3%
Market capitalization INR 487bn (USD 12bn)
Estimated 03/2008 P/E Ratio 31
HDFC Bank Ltd.
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
HDFC Bank Ltd.
Source: Factset
Source: Factset
Source: Factset
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Largest brewer in the world with an estimated 15% global market share, domiciled in Belgium
Extensive brewery, distribution and sales networks
Production plants in Europe, North American and Asia
Very well positioned in emerging markets to capture growth
75% of its sales come from the emerging markets with more than half of its earnings coming from Brazil
Brewer’s main international brands: Stella Artois, Beck’s and Brahma
Estimated 10-11% annualized earnings growth over the next five years
EPS 10 year compound annual growth rate 13.9%
Market capitalization EUR 40.5bn
InBev NV
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
InBev NV
Value creation by investing capital at rates of return that exceed their cost of capital,
value according to VAMUS calculation
Chart1
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
2006
2007
90
91
92
93
94
95
96
97
98
99
2000
193
2001
209
2002
183
2003
224
2004
446
ORI
90
91
92
93
94
95
96
97
98
99
2000
2001
6
2002
6
2003
6
2004
2
0
0
0
0
0
0
examples
0
0
0
0
0
0
90
91
92
93
94
95
96
97
98
99
2000
2001
2002
75
2003
92
2004
83
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
(240)
98
(1,363)
99
(1,349)
2000
(1,201)
2001
(1,212)
2002
(1,741)
2003
(3,278)
2004
(1,587)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Year
Earnings per share
Return on Equity
in m GBP
Dividends per share
Total Shareholders' Equity
Earnings per share
Return on Equity
Book value per share
Dividends per share
Total Shareholders' Equity
90
91
92
93
94
95
96
97
363
98
386
99
431
2000
471
2001
338
2002
354
2003
507
2004
306
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Chart2
91
92
93
94
95
96
97
98
99
2000
2001
2002
2003
2004
2005
2006
90
91
92
93
94
95
96
97
98
99
2000
193
2001
209
2002
183
2003
224
2004
446
ORI
90
91
92
93
94
95
96
97
98
99
2000
2001
6
2002
6
2003
6
2004
2
0
0
0
0
0
0
examples
0
0
0
0
0
0
90
91
92
93
94
95
96
97
98
99
2000
2001
2002
75
2003
92
2004
83
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
(240)
98
(1,363)
99
(1,349)
2000
(1,201)
2001
(1,212)
2002
(1,741)
2003
(3,278)
2004
(1,587)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Year
Earnings per share
Return on Equity
in m GBP
Dividends per share
Total Shareholders' Equity
Earnings per share
Return on Equity
Book value per share
Dividends per share
Total Shareholders' Equity
90
91
92
93
94
95
96
97
363
98
386
99
431
2000
471
2001
338
2002
354
2003
507
2004
306
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Chart3
2000
2001
2002
2003
2004
2005
2006
193
209
183
224
446
1055
1372
INB
90
91
92
93
94
95
96
97
98
99
2000
193
2001
209
2002
183
2003
224
2004
446
ORI
90
91
92
93
94
95
96
97
98
99
2000
2001
6
2002
6
2003
6
2004
2
0
0
0
0
0
0
examples
0
0
0
0
0
0
90
91
92
93
94
95
96
97
98
99
2000
2001
2002
75
2003
92
2004
83
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
(240)
98
(1,363)
99
(1,349)
2000
(1,201)
2001
(1,212)
2002
(1,741)
2003
(3,278)
2004
(1,587)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Year
Earnings per share
Return on Equity
in m GBP
Dividends per share
Total Shareholders' Equity
Earnings per share
Return on Equity
Book value per share
Dividends per share
Total Shareholders' Equity
90
91
92
93
94
95
96
97
363
98
386
99
431
2000
471
2001
338
2002
354
2003
507
2004
306
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Chart5
91
91
92
92
93
93
94
94
95
95
96
96
97
97
98
98
99
99
00
00
01
01
02
02
03
03
04
04
05
05
06
06
90
91
92
93
94
95
96
97
98
99
2000
193
2001
209
2002
183
2003
224
2004
446
ORI
90
91
92
93
94
95
96
97
98
99
2000
2001
6
2002
6
2003
6
2004
2
0
0
0
0
0
0
examples
0
0
0
0
0
0
90
91
92
93
94
95
96
97
98
99
2000
2001
2002
75
2003
92
2004
83
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
(240)
98
(1,363)
99
(1,349)
2000
(1,201)
2001
(1,212)
2002
(1,741)
2003
(3,278)
2004
(1,587)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Year
Earnings per share
Return on Equity
in m GBP
Dividends per share
Total Shareholders' Equity
Earnings per share
Return on Equity
Book value per share
Dividends per share
Total Shareholders' Equity
90
91
92
93
94
95
96
97
363
98
386
99
431
2000
471
2001
338
2002
354
2003
507
2004
306
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Chart6
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
90
91
92
93
94
95
96
97
98
99
2000
193
2001
209
2002
183
2003
224
2004
446
ORI
90
91
92
93
94
95
96
97
98
99
2000
2001
6
2002
6
2003
6
2004
2
0
0
0
0
0
0
examples
0
0
0
0
0
0
90
91
92
93
94
95
96
97
98
99
2000
2001
2002
75
2003
92
2004
83
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
(240)
98
(1,363)
99
(1,349)
2000
(1,201)
2001
(1,212)
2002
(1,741)
2003
(3,278)
2004
(1,587)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Year
Earnings per share
Return on Equity
in m GBP
Dividends per share
Total Shareholders' Equity
Earnings per share
Return on Equity
Book value per share
Dividends per share
Total Shareholders' Equity
90
91
92
93
94
95
96
97
363
98
386
99
431
2000
471
2001
338
2002
354
2003
507
2004
306
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
- strong operations in Spain and more importantly, Latin America
- extremely well positioned in countries with low debt penetration
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Millea Holdings Inc.
Insurance holding company whose subsidiaries include Tokyo Marine & Nichido with headquarters in Tokyo, Japan
Japan’s biggest insurance group
Tokyo Marine & Fire Insurance Co. took over Nichido Fire & Marine Insurance Co. to form Millea in 2002
Core businesses: non-life and life insurance
Steadily taking initiatives in major markets such as China, India, Taiwan etc.
Premium growth at highest level in recent years
History of share buybacks and high level of dividends
Stable management
Selling at 12x of book value
Market capitalization JPN 3,669bn
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Millea Holdings Inc.
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
in GBP
Tesco Plc
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
in GBP
Tesco Plc
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
in GBP
Tesco Plc
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
in GBP
Tesco Plc
9/06
0.94
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
Source: Factset
Source: Factset
in EUR
Source: Factset
Source: Factset
Source: Factset
1998
437
1999
818
2000
913
2001
999
2002
975
2003
1104
2004
774
2005
711
2006
782
Year
REE
1999
405
2000
532
2001
321
2002
253
2003
326
2004
635
2005
723
2006
768
Year
in GBP
Diageo PLC
2001
23
2002
68
2003
23
2004
20
2005
38
2006
21
Year
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
-388
2000
-207
2001
-2
2002
34
2003
127
2004
117
2005
222
in m HKD
i-Cable Communications Ltd.
Total Shareholders' Equity
98
275
99
351
2000
374
2001
398
2002
518
2003
595
2004
621
2005
613
2006
636
Year
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
103
97
199
98
397
99
1219
2000
1730
2001
4598
2002
5768
2003
6574
2004
7921
2005
13410
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
11
1997
23
1998
23
1999
30
2000
63
2001
78
2002
90
2003
92
2004
155
2005
192
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source:
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
1,477
98
1,899
99
1,723
00
1,527
01
1,480
02
1,855
03
2,675
04
2,295
05
2,966
06
3,426
0
0
0
0
0
0
0
0
0
0
0
1997
10
1998
19
1999
21
2000
35
2001
37
2002
38
2003
36
2004
51
2005
58
2006
42
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
502
97
307
98
821
99
425
00
-1446
01
-420
02
-218
03
841
04
1556
05
3648
06
5018
Roche Holding AG
- one time provision CH -1.8bn - impairment charge with vitamine division CHF -1.1 bn - impairment losses on financial assets CHF -5.2bn
Return on Equity
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
96
97
98
99
3/2000
3/2001
3/2002
3/2003
3/2004
3/2005
3/2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1996
231
1997
236
1998
314
1999
290
2000
269
2001
322
2002
353
2003
379
2004
463
2005
562
2006
604
in GBP
Tesco Plc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Nestle S.A.
World's biggest food and beverage company with operations in almost every country in the world employing around 250,000 people
Food manufacturer with activities in coffee, bottled water, milk products, prepared dishes and pet food, chocolate & confectionery and pharmaceuticals
Brands include Nestlé, Nescafé, Perrier, Maggi, Purina, Friskies, PowerBar, Coffee-Mate, Poland Spring
Holds an indirect 26% stake in L’Oreal and has joint venture agreements with several companies
Attractive Health and Wellness markets
Push into higher margin nutritional products (new nutritional division)
Significant growth potential in the developing world
Nestlé is rated AAA for long term debt
EPS 10 year CAGR 10.6%
Market Capitalization USD 173bn, CHF 203bn
Estimated 12/2008 P/E of 17.1
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Nestle S.A.
Value creation by investing capital at rates of return that exceed their cost of capital,
value according to VAMUS calculation
Chart1
97
97
98
98
99
99
00
00
01
01
02
02
03
03
04
04
05
05
06
06
CAGR
15.35%
Year
1996
1997
2681
1998
2800
1999
3157
2000
4104
2001
4213
2002
2667
2003
3948
2004
3425
2005
3820
2006
4238
Year
Nestle SA
in USD
1996
97
2345
98
2478
99
2800
00
3748
01
3803
02
2013
03
3338
04
2796
05
3202
06
3501
Year
Nestle SA
in CHF
Source: Factset
CAGR
28.07%
Year
90
91
92
93
94
95
96
97
98
(1,548)
99
5,812
2000
23,489
2001
7,766
2002
8,354
2003
26,181
2004
58,388
0
0
0
0
0
0
0
0
0
0
0
0
0
0
90
91
92
93
94
95
96
97
2,400
98
2,807
99
2,696
00
2,420
01
1,579
02
2,703
2003
3,190
2004
4,409
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Shareholders' Equity
1996
5
1997
17
1998
23
1999
32
2000
72
2001
91
2002
58
2003
55
2004
52
2005
-25
Year
in m USD
1996
1997
112
1998
202
1999
316
2000
411
2001
416
2002
420
2003
419
2004
500
2005
438
2006
426
Year
in m USD
1996
1997
448
1998
875
1999
1,578
2000
2,522
2001
1,957
2002
1,710
2003
2,386
2004
2,579
2005
3,168
2006
5,137
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CAGR
5.57%
Year
90
91
92
93
94
95
96
98
97
116
98
101
99
117
2000
73
2001
2
2002
2
2003
(21)
2004
107
in USD
CAGR
17.09%
Year
Earnings per share
Return on Equity
in USD
in USD
in m USD
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION
Orkla ASA
Operates in three areas: branded consumer goods, materials and financial investments
Consumer goods includes profitable Unilever license franchise for home and personal care in Norway
Investment portfolio is at approx NOK 1