EDM Inversión Investment Philosophy Portfolio construction • Long-only traditional investment style (bottom-up) • Stock picking. No benchmarking (low overlapping against its benchmark) • Long-term investment horizon (5 years on average) • Low turnover (18% average for the last 6 years) • High liquidity (93% of the portfolio can be sold within one trading day) • Concentrated portfolio, maximum 20 companies • Fully invested (never below 80%): competition among stocks 9
EDM Inversión Investment Philosophy Stock picking methodology • Focus on understandable and predictable businesses at reasonable prices • Management quality & integrity are crucial for us • Demanding criteria: High quality of the business (ROE = 14,5%) • Sustainable EPS growth (9,4%) • Recurrent and solid cash-flows • Companies focused on international markets to generate growth • Lack of sectors whose profits are not easily foreseen: - Banking - Cyclical sectors 10
EDM Inversión Management Team Juan Grau, 66. Ricardo Vidal, 42. EDM Inversión Manager CO-CIO Chairman of EDM Gestión, SGIIC Consumption Sector Specialist Holds an MBA from ESADE University (Barcelona). Worked at Banco Vitalicio (Insurance Company) and Gesindex SGIIC (FinancialBusiness education. Graduate in business Services) from 1993 until 1997. Holds the Certified of EuropeanManagement from IESE, Graduate in Financial Financial Analyst (CEFA). Joined EDM in July 1997. Es miembro del Consejo de Administración de EDM Gestión, SGIIC.Analysis and Tax from EADA and Analysis andBudget Control from TEA-CEGOS. Adolfo Monclús, 38.Mr. Grau began his career as Controller of the CO-CIOAgrolimen Group Drinks Division. He was Chief Retail, Business Services andFinancial Officer and Board Member at the TMT´s Sector Specialisttextiles group Standard Fil, S.A. and ChiefFinancial Officer at Túnel del Cadí CESA. Graduated in Business Administration by the Universitat Internacional de Catalunya & in Economics Finance by BentleyPartner and Founder, in 1989, of EDM Group. College (USA). Holds an International MBA from Instituto deHe is currently Chairman of EDM Gestión, Empresa (Madrid). Worked at Argentaria and BBVA in the Mid- Corporate Banking area. Joined EDM in July 2005 after finishingSGIIC and a Board Member of EDM Holding. his MBA. 17
EDM Inversión Management Team Gonzalo Cuadrado, 41 Beatriz López, 34 Pharmacy, construction and infrastructure Medical, Food and Insurance Specialist Sector Specialist Graduated in Economics from Universitat Pompeu Fabra (UPF) in 1999, followed by a Graduated in Economy by UB. Holds a Master in Master’s Degree in Finance from CEMFI (Bank of Finances by the IEF, the CEFA, the CIIA and the Spain) in 2001. Holds the Chartered Alternative CAIA. Holds the “Certificado de Experto en Investment Analyst (CAIA) by the CAIA Valoración de Empresas”(CEVE) by IEAF. Worked as Association. She started her career at Banco a fund manager and analyst in Caixa Penedès. Sabadell, where she became Senior Equity Analyst and asset manager in EDM since 2004 Analyst. Joined EDM in 2007 as a Financial Analyst and Fund Manager. Alberto Fayos, 39 Specialised industries and Financials Sector Specialist Holds a Bachelor’s Degree in Actuarial and •No distinction between analyst & portfolio manager Finances and a Degree in Statistics from University of Barcelona (UB). Holds the Certified European Financial Analyst (CEFA). • Collective discussion & Individual decision Worked at Gaesco Gestión SCIIC from 1997 until 2005. Worked at Banc Sabadell Gestión SGIIC from 2006 until 2009. Joined the • Investment Team over the last 6 years: Investment Department of EDM in March Non-existent staff turnover 2009, where he is analyst and portfolio manager. 18
EDM Inversión About EDM Asset Management Regulated companies in three European domiciles EDM HOLDING, S.A. 100% EDM SERVICIOS EDM GESTIÓN EDM FUND EDM ASSETCompany FINANCIEROS S.A. SGIIC MANAGEMENT, S.A. MANAGEMENT, Ltd S.A. AVCountry SPAIN SPAIN LUXEMBOURG IRELAND Since 1989 Since 1989 Since 1990 Since 1999 Service Discretionary Domestics Funds International Fuds Fund of Management SICAV SICAV Hegde Funds 21
EDM Inversión About EDM Asset Management EDM Senior Managers Eusebio Díaz-Morera, 66 Antonio Estabanell, 52 EXECUTIVE CHAIRMAN CEO Graduated in Economy from Barcelona Holds an MBA from ESADE University University and MBA from IESE (Barcelona). (Barcelona). Worked at KPMG and two Before founding EDM in 1989, he was General international food companies in the Financial Director of PAS (Fund Management and Area. Joined EDM in 1990 and since then has Corporate Finance), Chairman of Caja de been involved in all investment management Barcelona (Savings Bank), Chairman of Banca activity within the company. Until 2010 he was Catalana, and Chairman of Tunel del Cadí the Managing Director and CIO. (tollway concession) Javier Prada, 62 Luis Fortuny , 45 DIRECTOR HEAD OF BACK-OFFICE & COMPLIANCE Graduated in Law, he holds a Master in Graduated in Economics and Finances from Finance (University of Paris). He started his UAB. In 2006, he received a BA degree in PDD career in Banif Private Bank (Santander) where from IESE Business School. He was working at he was Regional Manager and Former SONY from 1990 to 2000 as Accounting Managing Director. In 1991 he joined Indosuez- Manager and Control Manager. He was Senior Credit Agricole where he was Private Banking Consultant at Cap Gemini Ernst & Young. He General Manager and Regional President. He was also Finance Director at Baker & Mc Kenzie joined EDM in 2005. (Law firm). He joined EDM in 2008.
EDM Inversión About EDM Asset Management EDM performance with other asset types 20 Years 15 Years 10 Years 7 Years 3 Years 2 Years 2011 FUND CATEGORY Inception Date ISIN RETURN RETURN RETURN RETURN RETURN VOLATILITY RETURN EDM Strategy Europe Equity Large Cap 241,68 81,18 0,70 40,15 28,54 11,28 -5,00 31/10/1995 LU0028445327 EDM Ahorro Euro Corporate Credit 115,95 48,55 25,23 17,64 9,29 1,81 2,00 01/04/1991 ES0168673038 EDM Inversión Spanish Equity 331,87 170,68 63,37 18,62 6,94 17,25 -6,10 01/04/1991 ES0168674036 EDM Renta Euro Fixed Income 47,62 23,82 16,27 4,10 0,63 1,60 22/12/1994 ES0127795039 EDM American Growth (USD) US Equity Large Cap Growth -24,22 3,19 45,70 12,58 4,01 31/05/1999 LU0095539242 EDM Cartera Global Equity Large Cap 10,09 11,60 -5,15 11/07/2008 ES0128331008 EDM American Growth (EUR) US Equity Large Cap Growth 41,91 18,24 0,22 10/09/2008 LU0388590050 EDM Credit Portfolio High Yield Fixed Income 43,65 7,89 4,24 08/10/2008 LU0028445590 EDM Emerging Markets Emerging Markets Equity 12,72 -17,80 21/12/2009 LU0051440435 EDM High Yield Short Duration High Yield Fixed Income 1,52 06/10/2011 LU0146855530 24 All EDM return data are expressed in euros and are stated net of expenses and fees.
EDM Inversión Summary 10 reasons for investing in EDM Inversión 1. Consistent returns above benchmark (+6% annual outperformance) 2. Very small volatility for an equity fund (-4% annual bellow benchmark) 3. Excellent relative performance throughout the financial crisis (2007-2011) 4. Stable investment philosophy all over 23 years 5. Unique and tested investment process developed by an experienced management team 6. Very high quality (ROE) and liquid concentrated portfolio 7. Defensive strategy: focus on "ensured growth" without cyclical sectors 8. Portfolio valuation at historial minimum levels 9. Poor overlapping and low correlation with other fund managers 10. Complementary with other equity styles 26
EDM Inversión Summary EDM INVERSION CURRENCY Euro IDENTITY NAV 32,26 € German Tax Transparency FUND AUM 30.264.000 € UCITS SPANISH PORTFOLIO AUM 100.000.000 € LEGAL STRUCTURE ES & PT- FI INCEPTION DATE 21/02/1987 INCOME DISTRIBUTION Retained MANAGEMENT FEE (Private) 2,25% CUSTODIAN FEE 0,15% TOTAL EXPENSE RATIO 2,40% FUND MANAGERS Juan Grau MANAGER EDM Gestión SGIIC EU TAX DIRECTIVE CUSTODIAN Bankinter, S.A. Eu Tax Directive Start Date 01/05/2012 AUDITOR KPMG Auditores, S.L. Eu Tax End Date 30/04/2013 DOMICILE Spain Eu Tax Directive Status Out of Scope DEALING Daily Eu Tax Directive 15% Threshold No CATEGORY Spanish Equities Eu Tax Directive 40% Threshold No SPANISH CNMV CLASSIFICATION Euro Equity Prospectus vs Asset Allocation No SPANISH INVERCO CLASSIFICATION Spanish Equities NAV Taxable Interest Income Accrued No LIPPER CLASSIFICATION Equity Spain Dividend Taxable Interest Incime Accrued No COUNTRIES REGISTERED FOR SALE DISTRIBUTION PLATFORMS Spain ("Traspasable") Inversis Banco CROSS REFERENCES CROSS REFERENCES ISIN ES0168674036 F&E FUND CODE 37769 ISIN CURRENCY CLASS ES0168674036.EUR F&E GROUP CODE 21028 CNMV CODE 46 PERM ID 18060016055 BLOOMBERG EDMINVE SM RIC 0168674036.ES REUTERS 0168674036.ES RIC LP60016055 LIPPER 60016055 VALOR 430798 27 WKN- GERMAN A0MXS7
www.edm.es Ignacio Pedrosa Head of Investor Relations +34 636814186 +34 914110398 firstname.lastname@example.org http://es.linkedin.com/in/ipedrosaLEGAL NOTICE1) This information represents disclosure by EDM and is intended merely to inform those to whom it is addressed in compliance with the code of cunsuct applying to all investment services in Spain. For this reasonefforts have been made to ensure that it is sufficient and understandable to anybody likely to receive it.Given that the information may refer to or include separate additional documentation, the recipient is invited to request this from EDM.If, within the body of information in this notification, there should be any offer regarding products, financial instruments or services, the recipients thereof also have at their disposition supplementary or additionaldocumentation which will enable them to authorise all the terms and conditions pertaining to the offer of interest to them.2) EDM is a securities broker registered in Spain (Avda. Diagonal 399 3º 1ª, 08008 Barcelona) and is authorised to provide investment services with regard to securities and financial instruments for clients, in relationto whom it is subject to the supervision of the Comisión Nacional del Mercado de Valores (National Securities Market Commission) (CNMV, Paseo de la Castellana 19, 28046 Madrid), where it is registered undernumber 139. The broker is a member of the Fondo de Garantía de Inversiones (FOGAIN, the Investment Guarantee Fund).3) The recipients of this information should bear in mind that any results or data provided may be subject to fees, commission, taxes, expenses or duties, which could lead to a reduction in the gross return, whichwill depend on the particular nature of each case.4) It is here left on record that the instruments described in this information are subject to the impact of various common causes, such as:i- Alterations to the markets due to unforeseen circumstancesi- Liquidity risks and others which affect the progress of the investment.5) Within this information here figures appear that refer to past returns for the products mentioned. It is obvious that such information should be used as a reference and as valid background data to reach one’sown conclusions, but under no circumstances should it be employed as an indicator guaranteeing future performance.By the same token, the information contained that might simulate future trends for any product and its performance must, for identical reasons as those cited for past data, be considered as a valid reference toreach one’s own conclusions but in no way seen as a guarantee of returns that will be obtained.6) Within this documentation there may be figures based on currencies other than those used by recipients hereof. For this reason consideration should be given to any possible change upwards or downwards in thevalue of the currency and how this affects the results for the products or instruments proposed.This document is reserved for professional investors only as defined by the MIFID