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  • 1. March 2013One Strategy – Two Funds:• ValueInvest LUX Global• ValueInvest LUX Japan
  • 2. About UsFoundation 1998 in LuxembourgOwnership 13 banks and employees are majority shareholdersArea of business Highly specialized investment management company Exclusively engaged in equity investments One investment approach for Global and Japan EquityInvestment approach Large Cap Value, Long only, Fully invested Fundamental, Bottom up portfolio construction Absolute return/risk orientedAUM company Approximately EUR 2.14 billion / USD 2.79 billionNumber of Employees 15 employees servicing more than 30,000 clients and investorsAvailable Products ValueInvest LUX SICAV Investeringsforeningen ValueInvest Danmark Segregated Institutional Accounts 2
  • 3. Our Mission Caution is a virtue To preserve and build our clients’ capital. …and so we must live with the return. To aim for high absolute returns in combination with low down-side risk. To achieve above-average returns requires patience and a long-term investment perspective. To share our knowledge and to provide full transparency to our customers. 3
  • 4. Historical Performance - GlobalValueInvest AM Global Composite returns in EURin % Comp Global MSCI World 50 44.8 40 34.9 32.5 30 26.3 26.8 22.1 18.8 18.7 18.5 19.6 20 16.8 15.0 13.8 11.7 10.4 10.7 8.9 9.2 10 7.5 6.3 5.4 2.4 0 -2.5 -1.6 -3.0 -2.5 -10 -6.1 -12.5 -13.3 -20 -20.5 -30 -32.4 -40 -38.1 -50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Feb 2013 Annualized Limited downside risk generates long term outperformance. 4
  • 5. Historical Performance - JapanValueInvest AM Japan composite returns in EURin % Comp Japan MSCI Japan 87.2 90 70 50 43.6 44.7 29.0 30 25.123.6 20.8 12.114.0 7.4 9.6 7.5 8.4 10 6.4 5.5 6.3 1.8 3.6 0.1 0.9 0.3 0.9 -0.2 -10 -4.8 -8.6 -13.6 -11.5 -14.6 -22.3 -30 -25.7 -24.3 -26.1 -50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Feb 2013 Annualized Limited downside risk generates long term outperformance. 5
  • 6. Investment Philosophy Like the owl… …observant and cautious… The market is inefficient in the short term – thus mispricing company stock. We are value investors investing in companies trading at a substantial discount to their intrinsic value. Low risk of permanent losses is achieved by purchasing quality companies at prices significantly below fair value. 6
  • 7. Investment ProcessSummary Investment Universe Global: ~ 20,000 companies ex financials Japan: ~ 2,400 companies ex financials Screening and idea generation ~7,500 Fair Value Calculations Valuation (including ~ 1,300 for Japan) Filter based on Value Invest AM’s Fair Value Model Business Analysis Fundamental 200-300 Global investment ideas Analysis (including 60-80 in Japan) analysed for recurring income Portfolio Selection Implementation Monitoring & Portfolios Global: 40-70 companies Risk Management Japan: 20-40 companies 7
  • 8. Investment ProcessRisk premiums are assignedA) An industry risk evaluation is allocated to each individual company GICS® Sub-Industries (examples) Industry Risk & Company Rating Household Products A A-1 A-2 A-3 A-4 Brewers B B-1 B-2 B-3 Specialty Chemicals C C-1 C-2 Motorcycle Manufacturers D D-1 Semiconductors E VIAM Risk Premium* 25% 50% 75% 100% 150%* Relating to the 10-year government bond yieldB) Quality check: Net Debt < than EBITDA 5x 4x 3x 2x 1x 8
  • 9. Investment ProcessFundamental business analysis A. Understand business models and evaluate earnings stability B. Refine Fair Value Calculation by adjusting for: Non-recurring operating income Number of outstanding shares according to issued stock options etc. Pension liabilities C. Evaluate the company’s earnings growth expectation (max. 2 years) 9
  • 10. Investment ProcessAssigning margin of safety Fair Value Required % of Fair Value VIAM Market Cap. Safety Margin is looking to pay > EUR 10 bn 35% 65% > EUR 5 bn 40% 60% > EUR 1 bn 45% 55% > EUR 500 m 50% 50% > EUR 250 m 55% 45% > EUR 100 m 60% 40% > EUR 50 m 65% 35% < EUR 50 m 70% 30% Size and liquidity of companies are essential elements of optimal portfolio construction. 10
  • 11. Portfolio Construction and Risk Portfolio construction: Bottom up Risk management portfolio level Risk categories A B C ≥ 67% of portfolio. Ensuring sufficient diversification. Risk management company level Maximimum position weighting: 7,5% . Monitoring of Fair Value, safety margin and debt criteria. 11
  • 12. Sector Performance (2003-2012)The value of the stock selection process 160% 140% 120% 100% 80% 60% 40% 20% 0% Source: ValueInvest Asset Management and Bloomberg Data Portfolios always had a large exposure in Consumer Staples and Health Care (60-75%). ValueInvest AM Global Composite accumulated a performance of 151% from 2003 – 2012. 12
  • 13. Portfolio CharacteristicsDispersion of ValueInvest risk categories GLOBAL Global investment universe according to ValueInvest LUX Global Fund according ValueInvest industry risk categories to ValueInvest industry risk categories 3.4% 0.3% 11.6% 7.0% 13.3% 58% of all 6,991 companies ex financials in the Global univers represent medium, 31.7% 15.0% high or very high risk (C, D und E). 34.9% 83% of all portfolio holdings of ValueInvest LUX Global are grouped in the lowest risk categories (A und B). 31.5% 51.3% A - very low risk A - very low risk B - low risk B - low risk C - medium risk C - medium risk D - high risk D - high risk E - very high risk E - very high risk Comparison of key figures: Screenings vs. ValueInvest LUX Global: Global Equities ValueInvest Screening LUX Global ConclusionDividend Yield 2.5% 3.3% Higher dividend yieldEarnings Yield* 8.7% 9.5% Higher earnings yieldNet debt / EBITDA 1.7 1.3 Lower debtPrice / ValueInvest Fair Value 59.0% 46.6% Lower ValuationReturn potential 69.6% 114.6% Higher return potentialGrowth estimate 14.7% 1.3% Conservative growth * Operating profit / (market capitalisation + net debt) Source: Bloomberg, ValueInvest; as of 28/02/2013. 13
  • 14. Portfolio CharacteristicsValueInvest Lux Global as of 28.02.2013Sector Allocation Country Allocation60% 60%50% 50% ValueInvest LUX Global A MSCI World ValueInvest LUX Global A MSCI World40% 40%30% 30%20% 20%10% 10% 0% 0% Continental Far East incl. UK Other USA + Canada Europe Japan Company top 10 Country Sector Industry Company Rating Weight General Mills United States Consumer Staples Food Products A 5.3% Nestle Switzerland Consumer Staples Food Products A 5.2% Kimberly-Clark United States Consumer Staples Household Products A 5.1% GlaxoSmithKline United Kingdom Health Care Pharmaceuticals B 4.9% Pfizer United States Health Care Pharmaceuticals B 4.6% Ahold Netherlands Consumer Staples Food & Staples Retailing B 4.0% Microsoft United States Information Technology Software B 3.7% Roche Switzerland Health Care Pharmaceuticals B 3.6% Merck & Co United States Health Care Pharmaceuticals B 3.6% Staples United States Consumer Discretionary Specialty Retail C 3.4% 14
  • 15. Conclusion Our mission: Aiming for high absolute returns with low downside risks Diciplined value-driven investment process Long-term track record Low risk profile 100% transparency for investors ValueInvest LUX Global & ValueInvest LUX Japan are well equipped to earn solid long-term equity returns – with a low downside! 15
  • 16. Contacts Jacob Vendelbo Director, Client Relations Tel +352 31 51 55 63 GSM +352 621 31 51 63 mailto:jacob.vendelbo@valueinvest.lu Markus Wiering, CFA Director, Client Relations Tel +352 31 51 55 62 ValueInvest Asset Management S.A. GSM +352 621 31 51 62 36, rue Marie-Adelaïde L-2128 Luxembourg mailto:markus.wiering@valueinvest.lu 16
  • 17. Appendix ValueInvest AM Global Composite Historical Performance ValueInvest AM Japan Composite Portfolio Characteristics Japan Historical Performance Portfolio Management Team - Biographies 17
  • 18. Historical PerformanceValueInvest AM Global Composite returns in EURValueInvest AM 31.12.2002 - 31.12.2012 31.12.2005 - 31.12.2012 31.12.2007 - 31.12.2012 31.12.2009 - 31.12.2012Global Composite (10 years) (7 years) (5 years) (3 years) Global MSCI World Global MSCI World Global MSCI World Global MSCI WorldAccumulated return (%) 151.24 63.89 46.32 10.32 28.48 4.22 21.92 32.81Annual return (%) 9.65 5.06 5.59 1.41 5.14 0.83 6.83 9.92Value added (p.a.%) 4.59 4.18 4.31 -3.09Standard deviation (p.a.%) 10.60 13.11 11.23 13.89 12.36 15.53 7.90 10.10Sharpe ratio 0.58 0.12 0.19 -0.15 0.13 -0.17 0.42 0.64Beta 0.68 0.69 0.69 0.59Tracking error (p.a.%) 5.79 5.90 6.24 5.28Information ratio 0.79 0.71 0.69 -0.59Treynors measure (%) 9.06 1.56 3.03 -2.09 2.38 -2.67 5.65 6.42Jensen`s alpha (%) 5.09 3.53 3.48 -0.45 * Returns are gross of PM and adm. fees * MSCI World with dividends reinvested * All numbers are in EUR and based on monthly data Acc. Return 31.12.2002 - 31.12.2012 (10 years) Acc. Return 31.12.2007 - 31.12.2012 (5 years)260 140 Global Composite Global Composite240 130220 120200 110180 100160 90140 80 MSCI World120 70100 MSCI World 60 80 50 18
  • 19. Historical PerformanceValueInvest AM Global Composite returns in EUR 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Return Global 34.92% 8.91% 18.83% -13.33% 18.66% 18.53% 22.08% 16.75% -2.46% -20.46% 32.48% 15.00% -2.96% 9.25%Return MSCI World 44.84% -6.13% -12.47% -32.43% 11.66% 5.38% 26.26% 7.55% -1.58% -38.09% 26.76% 19.63% -2.45% 13.81%Value added (p.a) -9.92% 15.04% 31.30% 19.10% 7.00% 13.15% -4.18% 9.20% -0.88% 17.63% 5.72% -4.63% -0.51% -4.57%Std. dev. Global (p.a.) 19.20% 13.41% 16.06% 13.83% 11.51% 7.35% 6.90% 7.61% 7.70% 15.11% 16.50% 6.80% 10.49% 5.40%Std. dev. MSCI World (p.a.) 14.99% 17.97% 20.20% 21.80% 15.43% 5.30% 9.73% 8.61% 9.23% 19.59% 17.75% 10.42% 12.10% 7.04%Sharpe ratio: Global 1.64 0.40 0.95 -1.22 1.32 2.04 2.69 1.74 -0.77 -1.59 1.76 1.69 -0.62 1.06Sharpe ratio: MSCI World 2.76 -0.54 -0.79 -1.65 0.53 0.35 2.34 0.47 -0.55 -2.12 1.31 1.55 -0.49 1.47Beta 0.27 0.63 0.63 0.52 0.59 1.16 0.59 0.71 0.62 0.65 0.89 0.46 0.66 0.58Tracking error (p.a.) 19.68% 7.57% 10.31% 8.42% 7.46% 4.24% 4.02% 4.79% 5.41% 8.68% 4.77% 5.04% 7.20% 3.69%Information ratio -0.50 1.99 3.04 2.27 0.94 3.10 -1.04 1.92 -0.16 2.03 1.20 -0.92 -0.07 -1.24Treynors measure Global 115.42% 8.60% 24.37% -32.53% 25.87% 12.97% 31.53% 18.75% -9.61% -37.13% 32.44% 24.93% -9.86% 9.87%Treynors measure MSCI World 41.34% -9.63% -15.97% -35.93% 8.16% 1.88% 22.76% 4.05% -5.08% -41.59% 23.26% 16.13% -5.95% 10.31%Jensen`s alpha 20.17% 11.47% 25.38% 1.73% 10.38% 12.86% 5.17% 10.39% -2.81% 2.88% 8.21% 4.06% -2.56% -0.26% • Returns are gross of portfolio management and administration fees • MSCI World with dividends reinvested • All numbers in currency EUR and based on monthly data 19
  • 20. Portfolio CharacteristicsDispersion of ValueInvest risk categories JAPAN JAPAN investment universe according to ValueInvest LUX JAPAN Fund according ValueInvest industry risk categories to ValueInvest industry risk categories 3.7% 5.7% 1.2% 12.8% 21.1% 67% of all 1,453 companies ex financials 12.1% in the Japan univers represent medium, 29.8% high or very high risk (C, D and E). 81% of all portfolio holdings of 17.3% ValueInvest LUX Japan are grouped in the lowest risk categories (A and B). 28.1% 68.2% A - very low risk A - very low risk B - low risk B - low risk C - medium risk C - medium risk D - high risk D - high risk E - very high risk E - very high risk Comparison of key figures: Screenings vs. ValueInvest LUX Japan: Japan Equities ValueInvest Screening LUX Japan ConclusionDividend Yield 1.9% 2.4% Higher dividend yieldEarnings Yield* 6.8% 12.0% Higher earnings yieldNet debt / EBITDA 2.4 no debt Lower debtPrice / ValueInvest Fair Value 83.4% 46.7% Lower ValuationReturn potential 19.9% 114.2% Higher return potentialGrowth estimate 6.1% -0.4% Conservative growth * Operating profit / (market capitalisation + net debt) Source: Bloomberg, ValueInvest; as of 28/02/2013. 20
  • 21. Portfolio CharacteristicsValueInvest LUX Japan as of 28.02.2013 Sector Allocation 60% 50% ValueInvest LUX Japan A MSCI Japan 40% 30% 20% 10% 0% Company top 10 Country Sector Industry Company Rating Weight Asahi Group Japan Consumer Staples Beverages B 6.6% FamilyMart Japan Consumer Staples Food & Staples Retailing B 5.6% KDDI Corp Japan Telecommunication Services Wireless Telecommunication Services D 5.5% IT Holdings Japan Information Technology IT Services B-1 5.3% Konica Minolta Japan Information Technology Office Electronics C 5.0% Mitsubishi Tanabe Japan Health Care Pharmaceuticals B 4.9% House Foods Japan Consumer Staples Food Products A-1 4.9% Kirin Japan Consumer Staples Beverages B 4.9% Ono Pharmaceutical Japan Health Care Pharmaceuticals B 4.6% Kao Japan Consumer Staples Household Products A-1 4.6% 21
  • 22. Historical PerformanceValueInvest AM Japan Composite returns in EURValueInvest AM 31.12.2002 - 31.12.2012 31.12.2005 - 31.12.2012 31.12.2007 - 31.12.2012 31.12.2009 - 31.12.2012Japan Composite (10 years) (7 years) (5 years) (3 years) Japan MSCI Japan Japan MSCI Japan Japan MSCI Japan Japan MSCI JapanAccumulated return (%) 113.50 28.59 22.23 -26.79 41.85 -11.01 34.07 16.20Annual return (%) 7.88 2.55 2.91 -4.36 7.24 -2.31 10.27 5.13Value added (p.a.%) 5.33 7.27 9.55 5.14Standard deviation (p.a.%) 12.56 16.38 12.07 14.50 13.44 16.13 13.67 14.22Sharpe ratio 0.51 0.06 0.12 -0.40 0.43 -0.24 0.64 0.26Beta 0.57 0.56 0.58 0.68Tracking error (p.a.%) 8.41 8.95 9.80 9.78Information ratio 0.63 0.81 0.97 0.53Treynors measure (%) 11.16 1.05 2.50 -5.86 9.97 -3.81 12.85 3.63Jensen`s alpha (%) 5.78 4.71 7.93 6.29 * Returns are gross of PM and adm. fees * MSCI Japan with dividends reinvested * All numbers are in EUR and based on monthly data Acc. Return 31.12.2002 - 31.12.2012 (10 years) Acc. Return 31.12.2007 - 31.12.2012 (5 years)250 160 Japan Composite Japan Composite 150225 140200 130 120175 110150 100125 90 80100 MSCI Japan MSCI Japan 70 75 60 22
  • 23. Historical PerformanceValueInvest AM Japan Composite returns in EUR 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Return Japan 43.59% 1.77% 0.12% -8.57% 12.06% 20.84% 28.99% 0.88% -14.59% 5.50% 0.28% 25.11% 7.37% -0.19%Return MSCI Japan 87.27% -22.33% -25.71% -24.33% 14.01% 6.43% 44.75% -4.83% -13.56% -26.08% 3.61% 23.56% -11.53% 6.30%Value added (p.a) -43.68% 24.10% 25.83% 15.76% -1.95% 14.41% -15.76% 5.71% -1.03% 31.59% -3.33% 1.55% 18.90% -6.49%Std. Dev. Japan (p.a.) 31.51% 22.23% 18.46% 9.74% 11.33% 17.53% 10.64% 6.51% 6.80% 9.73% 16.53% 13.19% 17.26% 9.89%Std. Dev. MSCI Japan (p.a.) 18.80% 24.48% 19.21% 18.45% 23.28% 20.15% 14.62% 10.50% 8.17% 17.53% 18.96% 13.40% 18.31% 8.93%Sharpe Ratio: Japan 1.34 0.01 -0.07 -1.03 0.93 1.10 2.58 -0.09 -2.37 0.41 -0.07 1.79 0.34 -0.17Sharpe Ratio: MSCI Japan 4.62 -0.97 -1.42 -1.40 0.54 0.24 2.96 -0.60 -1.84 -1.57 0.11 1.65 -0.71 0.54Beta 1.14 0.80 0.71 0.40 0.43 0.79 0.61 0.47 0.21 0.36 0.68 0.78 0.86 -0.11Tracking error (p.a.) 24.21% 11.12% 12.98% 6.71% 5.79% 7.91% 6.10% 4.47% 6.90% 7.70% 10.75% 8.52% 7.61% 10.33%Information Ratio -1.81 2.17 1.99 2.35 -0.34 1.82 -2.58 1.28 -0.15 4.10 -0.31 0.18 2.49 -0.63Treynors measure Japan 36.82% 0.34% -1.93% -25.28% 24.85% 24.62% 45.11% -1.31% -76.01% 10.99% -1.78% 30.42% 6.86% 15.45%Treynors measure MSCI Japan 85.75% -23.83% -27.21% -25.83% 12.51% 4.93% 43.25% -6.33% -15.06% -27.58% 2.11% 22.06% -13.03% 4.80%Jensen`s alpha -55.91% 19.35% 18.02% -0.22% 5.24% 15.47% 1.13% 2.35% 12.90% 14.06% -2.66% 6.49% 17.01% -1.17% • Returns are gross of portfolio management and administration fees • MSCI Japan with dividends reinvested • All numbers in currency EUR and based on monthly data 23
  • 24. Portfolio Management TeamBiographiesJens Hansen Klaus Petersen, CFA Claus Juul Denis Kostyukovich, CFAHead of Investments and Portfolio Manager Portfolio Manager Portfolio ManagerPortfolio ManagerJens Hansen joined ValueInvest in Klaus Petersen joined ValueInvest in Claus Juul joined ValueInvest in 2004. Denis Kostyukovich joined ValueInvest2001. He was born in 1964 and 2006. He was born in 1964 and He was born in 1970 and attended in 2006. He was born in 1977 andattended the Aarhus School of attended the Copenhagen School of Aarhus School of Business where he attended Pepperdine University, Malibu,Business where he gained a Graduate Economics where he gained a gained a Masters degree in Economics USA where he gained a BSc inDiploma in Business Administration Graduate Diploma in Business and Business Administration. He started Finance. He started his career in 1997within Finance and International Trade. Administration (Financial and Manage- his career in 1998 with Sydbank as an as an analyst in risk and portfolioJens started his career with Spar Nord ment Accounting). He started his career equity analyst before moving to Spar management with AvtomobilniyBank in 1982 where he worked as an in 1984 as an administrator of pension Nord Bank in 1999 in the same role Bankiskiy Dom in Russia. Denis joinedanalyst and trader of bonds, equities pools at Faellesbanken in Denmark. before becoming the vice president of CSFB in 2000 as an equity researchand derivatives. In 1994 he joined Between 1988 and 1996 he worked for the research department in 2001. associate before joining AVTOVAZNykredit Bank where he worked as a various brokers as an equity sales Group in 2001 as a financial analyst.bond trader. He manages a number of analyst. Klaus joined Codan Bank in Denis is a CFA charterholder.funds using a systematic bottom-up 1996, first as a senior sales analyst,investment process. and later as a senior portfolio manager before joining ATP in 1999, Denmark’s largest pension fund, as a senior portfolio manager and later in the role as team leader of the TMT team. Klaus is a CFA charterholder. 24
  • 25. Caution is a virtue …and so we must live with the return.Disclaimer:Any information published in this presentation is meant exclusively as information and not as an offer or recommendation to buy or sell anyinvestment instrument.Any economic transaction based on the information in this presentation is on the investor’s own risk and account. ValueInvest AssetManagement S.A. declines to accept any liability for damages caused by the use of the information in this presentation. Investors arerecommended to seek professional advice before investing in ValueInvest Asset Management’s products. 25