GPQS Eclipse An Introduction

GPQS Eclipse
An
Introduction
Version 03003 / March 2005

Brief Comment Regarding Our Delivery Method
GPQS Eclipse is an on-line information service for licensed organisations and their
nominated users. ID and password allows access; permissions, privileges and
customised menus determine content and functionality for each user.
Minimalist programs and software reside on your servers and users’ computers,
enabling requested data and information real-time and on-line via structured, safe and
secure internet connections.
Data and information is not stored on your computer. Information is downloaded and
refreshed as required, real-time, from our interconnected and replicated data servers,
providing highly reliable 24/7 availability access to all global users.

Asia North America Europe Future
servers servers servers servers

Internet

clients’ firewall
security & protection
enabled users via firewall enabled users without firewall

As a user, you want to know that it is fast and reliable. Techno mumbo jumbo aside,
we assure you the GPQS Eclipse interface is much, much faster than browser or XML
based applications.
Make sure your application connection setup provides you with at least 2, ideally 6
specified connections to our servers. The 45gb burst speed pipe connecting our multi-
party hosted, geographically diversified server farm will ensure you have dependable
and rapid access to operate your application.
Further information contained within our latest Installation Guide & Smoke Test
publication (February 2005).

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GPQS Eclipse An Introduction: Version 03003 / March 2005
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Table of Contents
PAGE

Getting Started 4
The Workspace 4
Navigating 5

Company Analysis 6
Output Methods 11
GPQS Excel Link 12

Managing and Creating Reports 13
Portfolio Reports 17
Portfolios 18
Portfolio ~ Import / Export 19

Charts / Graphs 21

Organising the Display Area 23
Sort, Filter, Data Mining 23
Multi Window Display 23

Sidebar System Menu – Additional Applications 24
Ratio Analysis 24
Revisions, Revisions Series, Time Series 27
Cashflow Analysis 28
Profit Breakdown, Profit Morphology 30
DuPont Analysis 33
Revisions Charts 34
Portfolio Ratio Analysis 36
Portfolio Ratio Compare – Rotate 37
Portfolio Shape 37
Portfolio 2D Bubble Plot 38
Portfolio 2D 38

Further Assistance 39
Disclaimer
The contents of this document are only
intended to provide general information
on how a professional investor may use
the GPQS Eclipse system. This document is
not intended as a substitute for investment
advice and must not be relied upon as
such. This document does not provide,
and must not be construed as providing,
any recommendation in relation to any
Quick tip...
securities or other financial products and Additional documentation and reference material available
is not an invitation to take up any particular On-Line Help F1
securities or other financial products or
participate in any specific investment How To Guide F1 or Shift+F1
strategy. The content in this document is

?
Installation Guide & Smoke Test February 2005
not, and should not be considered, in any
way to be an indication of the merits of any Quick Reference desktop guide February 2005
entity. Any views that may be expressed
in this document about any entity are for
illustration only.

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Getting Started
Welcome to GPQS Eclipse. This Introduction shall navigate you through the features of the
GPQS Eclipse application, enabling you to get up and running with least effort and time.
We value and appreciate your feedback. Please feel free to contact GPQS with suggestions
and comments via email to Feedback@gpqs.com

The Workspace
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The principal front-end to the GPQS Eclipse application is written in Powerbuilder
Version 9 Enterprise edition. Features include standard MDI interface, dynamic tool bars,
sidebar treeview of available menu options, list of currently active screens and list of
user nominated bookmarks, right mouse button electives that are context sensitive and
dynamically created.
All system and customised data is centrally stored within the GPQS replicated Eclipse
servers and accessed through either the GPQS Eclipse application or through an
automation interface (GPQS Eclipse API) typically using VB or VBA. An Excel add-in
facilitates easy user retrievals through the GPQS Eclipse API directly into Excel worksheets.
Generating outputs from the workspace (data, graphics, screen shots) to ofﬁce
applications – HTML, Excel, Word, printers – are all enabled and easily implemented. We’ll
show you how.
A prime consideration has been to ensure that not only is the information deep, cleansed
and comparable but also the technology layer provides high availability and rapid response
times.
Within this guide, we shall now escort you through the application’s functionality and
nuances.
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Navigating
The GPQS Eclipse workspace is comprised of seven (7) principal screen sections with
which you ought to become familiar in the first instance. With reference to the
workspace diagram on the previous page, these are:
1. First line menu
a. File: New, Open, Close, Print, Password etc
b. Preferences:
i) Organize exchanges
ii) Organize currencies
iii) Sort and filter contributors
iv) Organize portfolios: lookup, create new, edit, import, copy
v) Formulae selector, create new, edit custom formulae
c. Edit: copy, copy picture, paste
d. Window: arrange windows, set preferences for multi-line tabs, zoom bar.
List open reports
e. Help: access on-line help; version and current connection
2. Second line menu (alters according to context)
a. List box of exchange code desired
Icon ID b. Select company code or portfolio code / industry group desired.
The Icon ID map for the application is: Right mouse button to alter portfolio list preferences
c. Choose currency of data to display (using current cross-rates)
email output d. Select individual contributor(broker) or <Consensus>.
Use preferences to filter contributors’ displayed data
chart wizard e. For company reports, “ALL” displays all contributors’ data
f. Category: select either home exchange or industry groupings for portfolio
sort data, descending reports
3. Third line menu: (alters according to context). Refer Icon ID map
sort data, ascending 4. Sidebar system menu: Expand / collapse tree menu of system reports and
functions. Multiple reports and windows can be active – use window layouts to
output to HTML arrange
5. Active & Bookmarks: displays open & active windows. Right mouse button to
output to Excel
bookmark favored displays
6. Generate output: HTML, Excel, Word, Printer
output to Word
7. Display space: All active reports are open windows which can be resized and
output to printer arranged in normal fashion. Reports may have tabbed electives displayed
horizontally along top. Refer to first line menu windows to toggle on/off tab
vertical marker line for display and zoom preferences
graphics 8. Zoom, filter and select: For graphics, zoom in on area of interest by using
horizontal marker line for SHIFT+LEFT MOUSE and drag. Pressing the lower case “r” letter key will revert the
graphics active window display to original state (ensure CAPS key is off)
vertical grid for graphics 9. Right Mouse button: For nearly all reports, clicking the right mouse button on data,
graph items, columns, tables will initiate context relevant options and choices
horizontal grid for graphics
References 8 and 9 are intra display electives; in the example above, for a 2D portfolio
data point labels for graphics graphic plot.

display statistics

lookup company code
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Company Analysis
For purposes of illustration, this example shall use the major international resource
company, BHP Billiton Limited.
Have your application open to experiment with the example. To begin, enter company
code BHP in the left most dialogue box (area 1, Second line menu).

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Zoom slider control

Unless overridden by bookmark entries, the system default display is Models Reports
within the Company menu tree (area 4).
Company Models Reports consist of annual data from contributors, system
formulae and custom deﬁned formulae. The output is shown in the Display
Space (area 7) according to which report template is chosen. In this instance,
the Overview report template. Other system and custom report templates are
displayed as tabs along the top of the data area. A single left mouse button
click on any of the presented report tabs will cause that particular report to be
presented.
The data is retrieved real-time from GPQS servers over the internet so you’ll note
the normal “system waiting” icon being displayed brieﬂy. However, once accessed
during current session, going back to a prior report is quite instantaneous.
The Preferences tab is a special instance and represented with a different icon
from others. Here you build, edit, sort and hide / unhide Company ~ Models
Reports templates.

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The Second line menu (area 1) provides for 5 electives plus the ticker lookup function.
From left to right, the electives are:

exchange contributor(broker)

company currency ‘All’ option

Company code. Try it. Replace BHP with WPL then either tab key off the field or
press the enter key. The data retrieval is activated and BHP Billiton data is replaced
with Woodside Petroleum Limited data. Try CSR. Woodside’s data is replaced with CSR
Limited data. Try XXX. Because XXX is not a valid company code within the system’s
universe of tickers, no alteration to the data is displayed. The report remains at CSR
data. Return the report display to BHP by re-entering that company code.
Exchange code. Many companies have multiple exchange listings which may be
modelled differently by contributing researchers. Eg, BHP Billiton is listed, in differing
guises, in Australia, UK, USA and Sth Africa.

It is the intersection of a Company code and an Exchange code that defines the listed
corporate entity (ticker) sought. The drop down choices for Exchange enables you to
specify a known specific company code at a known exchange code: for example, BHP
at ASX or perhaps BLT at UK.
The <ALL> elective near the top of the Exchange code drop down choice list invokes
your nominated sequential lookup preferences for exchange codes.

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Company Analysis (continued)

This sorted Exchange code list determines your preferences as to which exchanges have
priority in determining a given company code. You can access and modify this Exchange
Lookup Order via the <Customise> function at the very top of the drop down list.
(Alternatively, you can access this same Exchange Lookup Order customisation function
from First Line Menu ~ Preferences ~ Exchanges). Simply hold down left mouse
button on selected exchange and drag and drop to required priority position. Ensure to
click on the Save and Exit button once satisﬁed with your modiﬁed preferences.
Lookup. Click the button invokes the application’s company lookup function.

Normal search methodology applies. Double click left mouse button on chosen record to
retrieve data. If the elected combination of company code, exchange code and currently
selected contributor code results in a ‘match’, the renewed data will be displayed;
otherwise the currently displayed report will not alter.
Currency. Displayed company numeric data is presented in the currency of the <home>
exchange by default but can be altered to any chosen currency supported by GPQS Eclipse
(at cross rates updated daily). Choose <Customise> to modify the sort order.

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Contributor (broker). Depending on your permissions and privileges, this drop down list
displays contributors to which you have access and in the order as per your preferences.
A red tick indicates that for the company in question, these contributors furnish research
material. In this instance, all 8 chosen contributors have red ticks, indicating coverage of
BHP at ASX. This example chose Morgan Stanley’s research material.

Using the <Customise> option, listed uppermost within this drop down list (or via First
Line Menu ~ Preferences ~ Contributors), you are able, at all times, to toggle on/off
which contributors’ information to display and to set the order in which such is presented.
Ensure to click on the Save and Exit button once satisﬁed with your preferences.

Check (tick) the elective and the Second line menu alters to:

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The data will be refreshed immediately. Still using the existing report template (Overview),
what’s happened is that we now wish to view all chosen contributors’ data for a chosen
company code (BHP) at a chosen exchange (<All>) given a chosen currency (<Home>).
The difference is now to further select the annual data range to view. Alter the annual date
range by either entering the year/s directly or using the spin button. Either way, the data
refreshes on any change and updates the chosen report template display (area 7).
Restricting the multi-contributor range to the year 2005 for BHP at ASX with currency of
AUD, the revised Overview report display looks:

The columns are sorted by ascending year, then ascending contributor alphabetically. The
rows are determined by the report template chosen. (remember, you can use the zoom
scroll bar to magnify or reduce the displayed data and the split-screen bar to adjust).
Have a play around: select differing year ranges, jump from report template tab to other
report template tab electives, try differing company codes at differing exchanges and
interpret at differing currencies.

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Output Methods
Output of data and graphics of information from any active window within the display
area can be:
1. Copied to the clipboard for pasting into other office applications (as data tables or
as an image/picture)
2. Opened in a browser as an HTML instance
3. Exported directly to Excel
4. Exported directly to Word
5. Sent to printers
6. emailed (with attached HTML)

Options 2, 3 and 4 create a new instance of browser, Excel and Word respectively
each time the function is used. To assemble multiple information sets within the same
document (eg, Excel or Word), use option 1: copy to the clipboard and paste into the
office application.
Option 1 is accessed from the First line menu, using Edit:

Ensure you first have “focus” on the active window display you require. Graphics are
copied as pictures, data as data tables.
Options 2 - 5 are accessed from the icon bar located at area 6 (bottom left hand
corner of the application).

Alternatively, you can use keys F3, F5, F6 or Crtl+P respectively (refer First line menu
~ File).

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GPQS Excel Link
Option 3 (Excel) provides a choice: either link the data (via the GPQS.xla add-in) for
future refresh from within Excel or simply copy the existing static data.

Selecting the Link Data option, opens a new Excel worksheet (typically Book 1) and
populates Excel with both the chosen data and the link credentials to subsequently
refresh the data.

Note the existence of GPQS on Excel’s ﬁrst line toolbar menu. To refresh this exampled
spreadsheet data at a later time, select Refresh Worksheet Data.
Also note the highlighted cell A2. This contains the GPQS xla link formula to refresh the
data: =GPQSReport(“CompanyReport”,”BHP”,”<All>”,”Proﬁt and Loss Ratios”,”1
990",”2015",”Morgan Stanley”,”<HOME>”,””,”00000000")
Tip: if you edited cell A2 and replaced the 2nd variable “BHP” with “CSR” and then
execute Refresh Worksheet Data, the report will replaced BHP data with CSR data
provided the other variables are valid. (ie, the exchange code is valid and that CSR is
researched by the chosen contributor).
Within Excel, you can format the data area and your format settings will persist after
subsequent data updates. The caveat is that you ought not insert nor delete rows or
columns within the linked data area. When refreshed, the “data grid” will reoccupy the
same column / row matrix as determined by the originating report template.

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Managing and Creating Reports
For Company ~ Models Reports and Portfolio ~ Portfolio Reports (refer area 4,
sidebar menu) there exists a special tab elective named Preferences above the report
display.

The Preferences tab has essentially the same functionality for both Company and
Portfolio reports but are separate. A Company ~ Models Reports template only
applies to Company ~ Models Reports and is not accessible from Portfolio ~
Portfolio Reports.
Left mouse button once on the Preferences tab to access.

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Managing and Creating Reports (continued)

Area 1
Lists both system reports and your custom reports. GPQS system provided reports,
checked with a tick in column 3, are not alterable. However, these system reports
may be saved as a custom report, having a new name, and then modiﬁed, altered
as you wish. (Portfolio Reports differ a little. There, you specify which templates
to display with in the drown down choice list).
The 2nd column (show) does not delete these reports; simply governs which reports
to display as tabs with the display area. Use the check (tick) box to toggle Show on
or off.
Use left mouse button drag and drop to rearrange the priority order in which to
display these reports as tabs.
Ensure you select Save Preferences to effect any changes.
Double click left mouse button on any selected report to invoke the report
editor.

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Areas 2 & 3
In this instance, have elected to edit existing report Custom Report A.
Rearrange column order by drag and drop column positions (area 2),
Add, insert, modify or delete required column data.
Check box choices allow for displayed report rows to be bold and / or highlighted.
Invoking the insert, add or modify command buttons opens a further pop-up
window: the Column Selector.

Here, you can change the attributes of custom data and save as some other name if
you choose. Additionally, by clicking on the button (highlighted above), you call up
the Base Formula Editor, allowing you to create custom formulae.

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There are three “levels” of formulae: atomic, base and extended.
An atomic formula is an item of raw data ( e.g. Sales or Acquisition Expenditures
etc) provided by the contributing analyst. Atomic formulae cannot be created,
modiﬁed or deleted by application users.
A base formula ( e.g. EBIT or Enterprise Value ) is one which is derived from one or
more other formulae which can be atomic, base or a combination of both. Neither
of these are used directly in reports or charts.
The formulae used are actually extended formulae. These are a single base
formula to which one or more modifying conditions have been applied. At its
simplest, an extended formula may show simply an atomic formula such as Sales
or a base formula such as EBIT. The advantage of using modifying conditions is that
they enable comparisons.
One column in a report may show EBIT, the next column may have the percentage
change from EBIT for the previous year and the one after that may have the
absolute change from EBIT for the previous year. Extended formulae are created,
deleted, modiﬁed and viewed through the Column Selector and base formulae
through the Base Formula Editor.

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Portfolio Reports
Portfolio ~ Portfolio Reports are displayed in much the same manner as Company ~
Models Reports. There are however, differences:
The rows are company and year combinations, the columns display the data
speciﬁed.
Also, rather than report tabs, the report elective is a drop down choice within the
Third line menu. (In this example, have chosen a report named EVA Spread)
The Second line menu is modiﬁed. Instead of Company, the elective is Portfolio.
Right mouse button click on this elective to modify / toggle between preferred
portfolio categories.

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Portfolios
Clicking on Portfolios in the Preferences menu (First line menu) or selecting
Customise from the Portfolios drop down list brings up the Portfolio Lookup
screen.

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Parameters
1. List of existing portfolios. Left mouse button click on a displayed portfolio name
and the companies in the portfolio will appear in the main window.
2. Portfolio name
3. Portfolio code
4. Portfolio currency
5. If portfolio is weighted by % rather than shares.
6. Companies within the portfolio and number of shares held
7. Manage company / ticker selection
8. Import / Export details of chosen portfolio
9. Create new, modify existing, save as different or, if permitted, delete

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Portfolio ~ Import / Export
It is also possible to import and export details of a portfolio.
Use the Copy button to copy the first 3 columns of the displayed portfolio to the
clipboard, which can then be pasted into other office applications. For example:

Copied to Excel

Code Exchange Quantity
AMC ASX 879.828854
AMP ASX 1860.15206
ANZ ASX 1824.195418
AWC ASX 1163.039648
BHP ASX 3582.772683
CBA ASX 1274.129441
CML ASX 1163.778525
FGL ASX 1992.353465
NAB ASX 1558.044873

Use the Paste button to import a new portfolio from the clipboard. Advisable
to first select New so any existing portfolio will not be overwritten. Imported
portfolios can be either by quantity (shares) or by weight (%).

Example: by Quantity (shares) Example: by Weight (%)

Code Exchange Quantity Code Exchange Weight
AMC ASX 879.828854 AMC ASX 11.11111%
AMP ASX 1860.15206 AMP ASX 11.11111%
ANZ ASX 1824.195418 ANZ ASX 11.11111%
AWC ASX 1163.039648 AWC ASX 11.11111%
BHP ASX 3582.772683 BHP ASX 11.11111%
CBA ASX 1274.129441 CBA ASX 11.11111%
CML ASX 1163.778525 CML ASX 11.11111%
FGL ASX 1992.353465 FGL ASX 11.11111%
NAB ASX 1558.044873 NAB ASX 11.11111%

Be sure to first nominate whether the to be pasted new portfolio is by quantity or by
weight% by checking / unchecking the By Weight check box.

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When a new portfolio is pasted into GPQS Eclipse, a validation is effected. Below, we
have made 3 deliberate errors to the portfolio (by weight) to import:
AMPJU is not a valid company code
ANZ has a missing exchange code
CML has invalid exchange code = XXX

The import is not case sensitive but does require valid company code and exchange
codes.

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Charts / Graphs
There are two ways to depict data in report data tables into charts / graphs:
1. click on the Chart icon at the top left corner of most screens or
2. right mouse button click over the data and select the Graph option from the
menu box that appears

The Select Graph Details box will appear. This where you select how you want the
data displayed. Creating a chart is quick and easy, so experiment with the various types
of charts available (i.e. pie, column, line, plot, rows vs. columns) to determine which
chart clearly depicts what you ﬁnd interesting about the data. Multiple charts can be
created for the same data by using the New button near the top right of the chart
screen.
The scale on charts is automatically set based upon the data. This can sometimes result
in a largely empty chart because most of the data points are clustered together while
one or two may be quite far away. It is possible to expand a section of a chart by using
the Zoom technique.

Select:

which type of chart to use
which columns or rows to include in the chart (all, some or just one)

In this example, from the DuPont Analysis report for BHP, we seek to chart the
comparison of Interest Burden % against ROE % for estimate years 2006-2009 from
Morgan Stanley’s estimates.

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Charts / Graphs (continued)

Results in the graphic… Altering to graphic to include an extra row element – EBIT
margin % - recasts the graphic and visually, displays how the
contributor’s estimates predicts the falling EBIT margin % and
static-to-growing Interest burden % is effecting predicted ROE
% for the forcast period.

By clicking right mouse button on the chart’s title, you access the chart’s control
properties. Here you can alter the look and presentation elements of the graphic if so
wished.

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Organising the Display Area
Multi Window Display
From sidebar menu, select multiple outputs and combine using normal windows
resizing and positioning method.

Sort, Filter, Data Mining
Use right hand mouse click on a data cell to access functional options.

Toggle statistics display panel on / off using the “stats” button
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Sidebar System Menu – Additional Applications
So far, we have focussed on Models Reports and Portfolio Reports and some of the
associated methods and functionality to get you started and up and running. Other
system reports and functions include…
SIDEBAR SYSTEM MENU FOR COMPANY AND PORTFOLIO

Ratio Analysis
Allows you to examine the change of a single variable over historic and forecast years.
In this instance, we have requested data Return on Equity for BHP Billiton for the
years 2006 – 2008 (forecast year 2 (FY2) to forecast year 4 (FY4)) at the time of writing.
(The ratio chosen having been selected from the drop down list on Third line menu).
The data has been graphed by right mouse button clicking and choosing the Graph
option. By splitting (tile vertical) the display screen, we are able to display both graph
and the data. As with all display screens, any row or column can be quickly graphed
using this method.

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To inspect the calculation of the ratio being addressed, use Preferences ~
Formulae from the First line menu, expand the menu, scroll down and select
Return on Equity and click on the button to view.

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Sidebar System Menu – Additional Applications (continued)

The Return on Equity or ROE ratio, expressed as 0.00%, is specified as being:
Reported profit after tax before abnormals / Average Equity
or
Reported profit after tax before abnormals / Calculated Average Equity
if Average Equity = 0.
If neither condition is true, the resultant calculation returns an ROE of 0 (numeric zero).

The right hand data table window displays the contributors’ forecasts for the years
required. Not all available contributors have been displayed. Using Preferences ~
Contributors from the First line menu, we have restricted the list to 8 chosen
contributors plus the <Consensus> system derived value. The shaded ‘stats’ area
at the bottom of the data table is calculated upon this filtered data set, excluding
the <Consensus> entry.
By default, the <Consensus> value is derived from your full list of permissioned
and available contributors; whether displayed on a particular report or not. In the
Ratio Analysis example above, 8 contributors’ forecast data is displayed but the
<Consensus> item is derived from 12 contributors’ data. This explains why the
<Consensus> value, in this example, differs from the ‘stats’ displayed mean.
For the FY2 year (2006), traffic light filters have been applied to assist the visual
interpretation. (right mouse button click on the 2006 data column).

Traffic Light Filters and indeed, all sorting and filtering functions are available on all
data reports. Simply use right mouse button to initiate.

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Revisions, Revisions Series,
Time Series
Allows you inspect the time series characteristic of the chosen ratio. For example, what
has been the trend of contributors’ forecasts for BHP’s ROE for 2006 over the past
year?
Beneath, we display the contributors’ forecasts for that ratio for the 2006 year that
prevailed 1, 3, 6 and 12 months ago.

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Cashflow Analysis
Cashflow Analysis is a pre structured graphics display template, having four tabbed
electives:
Aggregate Cashflow: Cashflow is aggregated across the entire period chosen and
displayed in the form of a bar chart. The first four data categories (bars in red) on
the left represent categories of cash inflow (Operating Cashflow, Debt, Equity and
Debt). The next four data categories (bars in blue) summarise cash outflows. The
final data bar (in green) represents the change in Pre Tax Profit over the aggregate
period chosen.

In the example displayed, Morgan Stanley currently forecasts (for the 2006-2008
period) that cashflow requirements shall be funded without recourse to any
new equity raisings nor disposals. Cashflow will primarily be devoted to capital
expenditures and dividends with a very modest amount of working capital liberated
to aid positive cashflow. The forecast change in Pretax Profit over the period is
negative 26.5%.
(the chart colours differ from the default settings .. demonstrates you can modify
your own graphic styles).

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Cashflow by Years: Cashflow by Years dissects the Aggregate Cashflow,
graphically, into its annual components. The last right hand group of bar data
(Pretax Profit) is now represented by annual values rather than period % change.

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Profit Breakdown,
Profit Morphology
These two functions are highly useful in quickly inspecting the major drivers of
forecast change in a company’s profitability and the differences between contributors’
estimates.
For example, compare Morgan Stanley’s and Macquarie’s forward estimates for BHP
Billiton for the 2005 and 2006 financial years ending June 30th (FY1 and FY2).
From the Company ~ Models Reports ~ Profit and Loss Ratios report, we see
similar EPS growth rates and not too dissimilar P/E ratios.

Using Profit Morphology to focus upon the 2006 – 2008 period, we see that these
two contributors are within 15% of each other in terms of forecast change in BHP
Billiton’s net profit after tax for the 2006 – 2008 period (an approx A$1.2 – A$1.4
billion net reduction; comprised of a strong 2006 year, followed by a forecast weak
2007-2008 period). Over a forecast three year period, that’s quite a close ‘consensus’
on the surface.

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However, it can be readily observed the principle constituent drivers by each contributor
differs markedly in both quantum and factor. In the Profit Morphology report, the
Profit column displayed is the change in Net Profit After Tax from the prior annual
period and the six summary profit and loss categories that comprise the forecast
change.
As can be seen, even though on the surface, summary EPS and growth figures are quite
similar between the two contributors, the key driving factors for each are considerably
different. This knowledge may have a meaningful impact on the investment decisions
you make for a particular company. At the very least it provides GPQS Eclipse clients
with the quickly accessible information to have more meaningful dialogue with
contributors and zero-in on those factors of concern or interest.
To open more than one instance of a particular report window, right mouse button
click on a chosen active report within the Active tab and Lock Window. This enables
to you ‘lock’ a particular report and create more instances of that particular report
format. (eg: multiple instances of Profit Morphology upon which you can compare
different contributors as exampled above).

Quick tip...
To open more than one instance of a particular report window, right mouse
button click on a chosen active report within the Active tab and Lock Window.

?
This enables to you ‘lock’ a particular report and create more instances of that
particular report format. (eg: multiple instances of Profit Morphology upon
which you can compare different contributors as exampled above).

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Profit Breakdown provides a supplementary view of dissecting the prime drivers
of forecast profit change and the comparison of one contributor’s forecasts against
another.

The most right hand column displays the forecast NPAT (Net Profit After Tax) change
for BHP Billiton in 2006 (FY2). This column displays the absolute amount (here shown in
A$) of NPAT change which equals 100% of the forecast change.
The second most right hand column dissects this forecast NPAT change into four
summary categories - EBIT, Net Interest, Tax Rate and Other – showing both
percentage contribution and absolute amount (here shown in A$) contribution to the
NPAT change forecasted. Likewise, EBIT is dissected into the contributing components
of Sales and EBIT Margin and lastly, EBIT Margin itself dissected into Depreciation &
Amortisation and Costs contributions.

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For the example displayed, there are major differences between the two contributors
as to what is actually driving profit change over the 2005-2006 period; even though
superficially their summary NPAT percentage growth rate is not too dissimilar.

DuPont Analysis
Focussing on BHP Billiton’s forecasted 2006 profit by three contributors, we observe
the FY2 EPS forecasts are within an 8% range of each other for that year. From a
consensus EPS viewpoint, that’s a pretty tight grouping. But look at the DuPont analysis
derivations.

There exists considerable difference between the forecasts as to the composition of the
forecasted ROA Post Tax. Of the three chosen contributors to compare, Merrill Lynch
is the “bull” on EBIT Margin and Interest Burden whereas Morgan Stanley is the
“bear” on ROE and EPS.

Page 33


Revisions Charts
Permits you to view the time-series trend in contributor revisions on any formula.
For example, looking at our chosen contributors’ forward estimates for BHP Billiton’s
Dividend per Share for the 2006 (FY2) year, we can observe the current estimates
are 40% spread across the contributors (using the Company ~ Ratio Analysis report
tool). This spread of estimates is much greater than the spread of estimates for the
2005 (FY1) year.

What has been the time-series trend for this estimate? The Revisions Charts and
associated data table permits you to study this issue.

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P n

The default displays the full history of contributors’ time-series estimates.
Using SHIFT+ left mouse button to isolate a speciﬁc area on interest, we can zoom in
and ﬁlter the data for inspection.

Page 35


Portfolio Ratio Analysis
Previously, we looked at BHP Billiton’s Return on Equity (ROE) ratio analysis for the
2006 – 2008 years from multiple contributors.
Using Portfolio Ratio Analysis, we can view that company’s expected ROE in
comparison with other researched companies; grouped and sorted by either your own
speciﬁed portfolio or system furnished industries, sectors, top20 classiﬁcations etc.
For this example, we have selected to rank 2006 ROE (descending) for the MATERIALS
sector of the ASX expressed in Australian dollars, displaying 2005 – 2008 estimated
data from contributor Merrill Lynch.

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P n

Portfolio Ratio Compare – Rotate
Again, studying the ASX MATERIALS
sector, this report allows a multi-
contributor comparison of the ROE
ratio for the 2006 estimate year. In this
instance, we compare <Consensus>,
ABN Amro, Macquarie and Morgan
Stanley forward estimated ROE. Summary
statistics have been included for each
column of data.

Portfolio Shape
An interesting and useful function,
Portfolio Shape allows you to select a
given ratio for a given portfolio provided
by chosen contributor. The LHS displays
the ratio measure; the RHS the cumulative
percentage weight of the companies,
adding to eventual 100%.
In this example, we chose <Customise>
from the drop down list and selected
Market Cap to Sales from pre existing
formulae. (the chosen contributor is
Macquarie, the chosen portfolio is ASX
MATERIALS and the selected year is
2006).
The columns are sorted largest-to-
smallest ratio measure and the ranking is
numbered. Selected the Portfolio Shape
Data tab allows you to view, copy or
export the data.

Page 37


Portfolio 2D Bubble Plot
Extending the inspection further, the 2D
Bubble Plot allows for 3 variables to be
compared for the chosen portfolio. In
the example below, we have taken the
previously inspected Market Cap to
Sales ratio as the “bubble size” element
and mapped against EBIT Growth on
the Y axis and Return on Equity on the
X axis.

Portfolio 2D
Of course, you are able to generate a 2D
(X-Y) plot should you prefer.

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P n

Further Assistance
We trust this brief introduction has assisted you in becoming familiar with the basics of
the GPQS Eclipse application. Should you have need of assistance, please contact

For assistance, please
contact GPQS support:
Europe
Robin White at +44 (0)20 7877 2095

North America
Maribeth Martorana at (212) 672 1616

?
Asia
Colin Ritchie at +61 (3) 9225 5257

Page 39

Australian Main Office
GPQS Pty Ltd
Level 50
120 Collins Street
Melbourne, Victoria
Australia 3000
Telephone +61 (3) 9225 5257
Facsimile +61 (3) 9225 5050

United Kingdom Main Office
GPQS Ltd
Tower 42
7th Floor, 25 Old Broad Street
London EC2N 1HN
United Kingdom
Telephone +44 (0)20 7877 2095
Facsimile +44 (0)20 7877 0708

USA Main Office
GPQS (US) Inc
245 Park Avenue
39th Floor
New York, NY. 10167-0002
Telephone (212) 672 1616
Facsimile (212) 792 4001

Electronic mail
General Information Request@gpqs.com
Sales Sales@gpqs.com
Customer Support Support@gpqs.com

learn more...visit
www.gpqs.com

GPQS Eclipse An Introduction

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