A case for european midcaps

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Financière de l’Echiquier


Financière de l’Echiquier at a glance One of the leading independent Asset Management companies in France

6,5

Billion euros AUM

12% 39%

Private Clients

Institutionals

49%

Third party distribution

Independent

100% Of the funds rated upon ESG criterias

AUM by region

24%

90 employees

France

27 fund managers and analysts

International

76%

Data as of 28/06/2013. Source: Financière de l’Echiquier’s database.

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Financière de l’Echiquier’s UCITS offer Performances as of June, 28th 2013

EUROPEAN EQUITIES

AUM (ml€)

Annualized performances since inception

2012

YTD

Agressor

‘Carte Blanche’

1 427

+13,3% (1991)

+26,5%

+7,8%

Echiquier Major

European large caps

1 040

+6,9% (2005)

+24,2%

+6,9%

Echiquier Agenor

European small and mid caps

483

+7,8% (2004)

+23,1%

+12,0%

2012

YTD

Annualized performances since inception

INTERNATIONAL EQUITIES Echiquier Global

Worldwide leaders

100

+7,9% (2010)

+13,6%

+3,5%

Echiquier Global EAFE

Small and mid caps in developed countries except North America

« Fund laboratory »

Inception date : 04-16-2013

NA

NA

Data as of 28/06/2013. Source: Financière de l’Echiquier’s database.

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Recognised expertise Almost 50% of the total assets are currently held by institutional investors

Client

Confidentiel

Confidentiel

Type

Country

Strategy

AUM

Philanthropic Foundation

United States

Active European Equities

60 ml€

Bank

France

Active French Equities

249 ml€

Pension Fund

Canada

Active European Equities

77 ml€

Financial service provider

UK

Active European Equities

30 ml€

Sovereign Wealth Fund

Norway

Confidential

Confidential

Insurance Company

Belgium

Active European Equities

154 ml€

Pension Fund

France

Active European Equities and SRI

Confidential

Data as of 28/06/2013. Source: Financière de l’Echiquier’s database.

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Financière de l’Echiquier : A case for European Midcaps


Large caps comparison

MSCI Europe

S&P 500

40%

30% 20% 10% 0% -10% -20% -30% -40% -50% 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Average PE

Price to Book

Dividend Yield

MSCI Europe

12,9

1,7

3,8

S&P 500

14,3

2,4

2,1

2013

Data as of 09/07/2013. Sources: Bloomberg, Morningstar, Financière de l’Echiquier’s database.

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Small & mid caps comparison

MSCI Europe Small Cap

Russell 2000

80% 60% 40% 20% 0% -20%

-40% -60% 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Average PE

Price to Book

Dividend Yield

MSCI Europe Small Cap

14,3

1,5

2,8

Russell 2000

18,7

1,7

1,2

2013

Data as of 09/07/2013. Sources: Bloomberg, Morningstar, Financière de l’Echiquier’s database.

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ECHIQUIER AGENOR Fund focus Looking for the best midcaps in Europe

Growth at reasonable price

Searching for niche leaders

Emblematic managers

Around 40 growth projects rigourously assessed

80% of companies in the fund are leaders in their segment

Companies led by entrepreneurial managers

Echiquier Agenor

EV/ sales 2013

MSCI Europe Small Cap

250

PER 2013

230

Yield(%) 2013

210

+101,9% +69,0%

190 170

150

Average capitalisation (M€) Number of holdings Total assets (M€)

1,6 18,2 2,0 1 532,1 40 489

130 110 90 70

50 févr.-04

avr.-05

juin-06

août-07

oct.-08

déc.-09

févr.-11

avr.-12

juin-13

This document is meant for professional investors and has no contractual value. The information it provides is based on the best sources in our possession. Past performances are not a reliable indicator of future performances and may vary over time. Performances of the Fund and the benchmark include distributed income (as of the 2013 financial year). However, up to 2012 inclusive, the benchmark’s performance does not include distributed income.

Data as of 28/06/2013. Sources: Bloomberg, Financière de l’Echiquier’s database.

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Echiquier Agenor Case study, growth and improvement of results : Safilo N°2 of the optical manufacturing in the world Key information of the company  An oligopolistic and growing market : the luxury market  A new start after the end of the Armani’s licence  

A strong shareholder, HAL, the first european eyewear distributor Great margin enhancement potential, not already priced in.

EBIT’s evolution Presentation of the company

EBIT Margin :

Country

Italy

Market capitalisation

1 000 ml €

EBIT Margin :

Sales in 2012

1 175 ml €

74

Shareholder

HAL Holding : 42%

EPS CAGR

+ 45% between 2012 and 2015

11%

151

6,3%

ml € 2012

Data as at 10/07/2013. Sources: Safilo, Bloomberg, Financière de l’Echiquier’s database. These companies are mentioned as examples. Neither their presence in the portfolio, nor their performances are guaranteed.

2015 9


Echiquier Agenor Case study, a small european company with an international presence : Krones A global leader of bottling lines for the beverage industry Key information of the company  A business with strong barriers to entry : no new competitor for more than 20 years  A leading company which succeeded in its international development : a higher market share in China (40%) than in the rest of world (25-30% global market share)  An underlying market with a growth potential of 5-7% per annum Presentation of the company Country

Germany

Market Capitalisation

1 780 ml €

Sales in 2012

2 664 ml €

Shareholder

Kronseder family : 53 %

PE Ratio 2014

13,5x

Sales’ evolution

+7% 2 770 1 435 Sales ml € 2003

Data as at 10/07/2013. Sources: Krones, Bloomberg, Financière de l’Echiquier’s database. These companies are mentioned as examples. Neither their presence in the portfolio, nor their performances are guaranteed.

2013 10


ECHIQUIER AGENOR Fund under spotlight If Echiquier Agenor was a company… Characteristics :

Sectorial analysis :

Agregate Sales

540 Bn €

- USA

18%

- Europe

53%

- Emerging Markets

25%

- Rest of the world

4%

Sales growth in 2013

+5%

EBIT margin

5%

8%

Consumer Cyclical 32%

20%

5% 6%

9,7%

EPS growth adj. 2013

+18,5%

12%

6%

Ratios : 2013 1,6x

1,4x

EV/EBIT

12,3x

10,0x

PER

18,2x

14,8x

FCF Yield

4,6%

5,4%

Yield

2,0%

2,5%

Consumer Defensive

4%

Financial Services

17%

Healtcare

Industrials

2014

EV/sales

Basic Materials

22%

23%

9%

9%

Technology

2%

3%

Utilities

MSCI Europe Small Cap

Echiquier Agenor

Data as of 28/06/2013. Sources: Bloomberg, Financière de l’Echiquier’s database.

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This document is designed for investment professionals only and cannot be considered as a contract. The information contained herein are drawn from the best sources in our possession. References to listed stocks are made for illustrative purposes only and shall in no case whatsoever be considered as guidelines for investment. Previous performances are not systematic indicators of future performances, and do not remain constant over time. Finally, the tax treatment deriving from investment of Mutual Fund stocks or shares depends on the situation of each investor. It therefore advisables to consult your tax adviser. As management is discretionary, there is a risk that the Fund will not be invested at all times in the best-performing stocks. If the stocks to which it is exposed decline in value, the Fund’s net asset value could also decline. Funds is invested mainly in equities. The Fund incurs a risk of loss of invested capital. For further information on the Funds presented herein, kindly refer to the simplified brochure readily available at the management company by calling +33 – (0)1.47.23.90.90 or your usual contact person. All the funds presented herein are registered in France.

Agressor, Echiquier Major, Echiquier Agenor, all French Mutual Funds, are authorized to operate in Germany, Belgium, Spain, Italy, Netherlands and Switzerland. Echiquier Global, also a French Mutual Fund is registered in Germany, Belgium, Spain and Italy. Echiquier Global EAFE, also a French Mutual Fund is registered in France. Financière de l’Echiquier is registered as an Investment Adviser Firm by the french market authority (AMF Number: GP91004) Financière de l’Echiquier is registered as an Investment Adviser Firm in the United States (SEC Number: 801-76219).

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