INVESTMENT EXCELLENCE IN EUROPEAN EQUITIES

1. INVESTMENT EXCELLENCE IN EUROPEAN EQUITIES James Buckley

2. Europe – economic overview • Economic growth forecasts have been upgraded • Interest rates have begun to rise • Eastern Europe provides a boost • Unemployment rates are declining • Domestic demand is picking up • Business sentiment has plateaued October ‘06 Forecasts January ‘07 Forecasts yoy 2007 2007 2.0 GDP 1.9 Unemployment Rate (%) 7.5 7.6 Industrial Production 2.2 2.0 2.1 CPI 2.2 Source: Consensus Economics Inc, January 2007

3. 600 Pending 500 Shares Cash 400 €billion 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Pan European M&A – Here to stay Source: Citigroup Investment Research and Datastream, Jan 2007 M&A Activity has been a key theme in the last year

4. Growth theme in Peripheral Europe intact • Economic growth in the euro zone has improved • Peripheral euro zone economies are even more attractive Source: Consensus Forecast December 11th, 2006

5. 30 Index Weight (%) 12m Return (%) 20 10 0 Spain Ireland Sweden Austria Belgium Europe ex UK Italy Finland Portugal Norway Denmark Germany Greece France Netherlands Switzerland Traditional InvestingPerformance by country is not linked to index weight Source: MSCI Europe in € at 29 December 2006

6. Index Weight (%) 12m Return (%) 35 30 25 20 15 10 5 0 Utilities Industrials ConsumerDiscretionary Telecommunication Health Care Services Financials Materials ConsumerStaples Information Technology Energy Traditional InvestingSector performance doesn’t help either Source: MSCI Europe in € at 29 December 2006

7. Stock picking is the only tool left Opportunity for active managers to benefit from market inefficiencies

8. Investment ProcessFundamental Research – strong idea generation Four Key Measures VALUE CREATION GROWTH MANAGEMENT VALUATION Pace and duration Competitive position Opportunities for real growth Quality of earnings Culture of innovation Clear, credible strategy Company culture Corporate governance Demonstrable track record Acquisitions and disposals Cashflow returns Improving returns Economic value added Capital allocation Balance sheet structure EV/EBITDA* Price/cash flow Price/earnings Asset undervaluation Sector/market/cross border comparison Favourable risk / reward Enhanced shareholder value Unrecognised growth Credible management *Enterprise Value/Earnings Before Interest, Tax, Depreciation and Amortisation Research augmented by regular contact with target companies

9. We buy when we identify: Earnings growth prospects better than consensus estimates Undervaluation, based on comprehensive understanding of corporate strategy, fundamentals and peer comparables Catalysts that will lead to the stock being re-rated within a defined time frame Triggers for a sell: Stock achieves absolute valuation target We detect deterioration in fundamental outlook Changes in strategic/economic overlay Best and worst performing stocks review Buy & Sell Disciplines A disciplined approach to investment

10. Baring Europa Fund Portfolio Characteristics as at 31th January 2007 • Fund Size (USD million) 382.1 • Number of holdings in portfolio 58 • Large-cap eur>5bn+ (%) 59.72 • Mid-cap eur2-5bn (%) 13.48 • Small Cap eur<2bn (%) 23.27 • Tracking Error 4.05 Source: Baring Asset Management, data as 31/01/2007

11. Baring Europa Top 10 holdings Top 10 current overweight stocks* Top 10 current underweight stocks* Source: Baring Asset Management as at 31/01/07 * Relative to MSCI Europe index For Comparative Purposes Only

12. Baring Europa FundPerformance as at 31st January 2007 Source: Baring Asset Management, Standard & Poor’s. (bid to bid, in sterling, with net income reinvested). Rank 7/367 26/301 49/236 Quartile 1st 1st 1st An Offshore Fund recognised under the Laws of the UK, managed by Baring International Fund Managers (Ireland) Limited and marketed by Baring Asset Management Limited (Authorised and regulated by the Financial Services Authority). * Annualised Returns. Index is MSCI Europe. ** Micropal, UK Registered Investment Funds Equity Europe ex UK Reference to the index is for comparative purposes only.

13. This document is issued by Baring Asset Management Limited and in jurisdictions other than the UK it is provided by its investment advisory affiliates. It has been produced for, and is intended for receipt by, professional investors/advisers and must not be relied on by any other category of recipient. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance. Quoted yields are not guaranteed. We reasonably believe that the information contained herein from 3rd party sources, as quoted, is accurate as at the date of publication. This document must not be relied on for purposes of any investment decisions. This document may include forward-looking statements which are based on our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management. Research Material Baring Asset Management only produces research for its own internal use. Where details of research are provided in this document it is provided as an example of research undertaken by Baring Asset Management and must not be used, or relied upon, for the purposes of any investment decisions. The information and opinions expressed herein may change at anytime. Complied (London): 14th February 2007 Important Information Ensure Complied Date is added at foot of Disclosure