Two Decades of Finding European Value Omaha, May 2012

1. Two Decades of Finding European Value Omaha, May 2012

2. ABOUT US

3. BESTINVER: OUR PERFORMANCE

4. COMPARATIVE PERFORMANCE BESTINVER SPANISH EQUITIES vs. BENCHMARK * Returns for BESTINFOND to 31/12/1997 and B. BOLSA from 01/01/1998 * BENCHMARK is a weighted average of IGBM of IGBM (70%) (Madrid Stock Exchange Index) and PSI (30%). * All Bestinver returns are expressed as net, after expenses and commissions.

5. COMPARATIVE PERFORMANCE BESTINVER INTERNATIONAL EQUITIES vs. MSCI * Returns for BESTINVER INTERNACIONAL * MSCI = Morgan Stanley global stock market index * All Bestinver returns are expressed as net, after expenses and commissions.

6. PHILOSOPHY: FOUR KEY CORNERSTONES • GOOD PRICE DUE TO: • Shareholder structure (family owned) • Type of shares (preferred, non-voting, etc.) • Geographical reasons: business and shareholders in different zones • Long term projects (impatient market) • Small caps (unnoticed by the market) • Asset organization (Holdings..) • COMPANIES WITH: • Competitive advantage: • High ROCE • Sustainable • Correct attitude with generated cash-flow • TIME • Patience • Psychological preparation • Client education • AUSTRIAN SCHOOL OF ECONOMICS • Economic general structure • Human behavior • Non-predictable consequences in stocks • Euphoria / Panic

7. THE AUSTRIAN SCHOOL Practical points from the school

8. ECONOMIC SCENARIO: WHAT SHOULD WE BE LOOKING AT? • Estimated GDP growth for China in 2012 is 7x higher than the potential combined contraction for the southern European countries Fuente: Capital Economics • World Bank, current figures. • IMF growth estimate. • Bestinver growth estimate. • Current figure at close of 2011. 8

9. HOW CHINA GROWS: • Averageproductivitygrowth of 4% from 1990 to 2008 (*) • Growthisincreasinglydrivenbyinternaldevelopment • Exports net of importsnowhardlycontributetoeconomicgrowth: • 1% in 2011 • Outsidethestate-owned sector (30% of theeconomy) itistheworld’smost flexible and dynamicmarket. • Despitethe surge in investment, the capital stock per capitaisnoteven 15% of Korea’s. China’s rail networkissmallerthanAmerica’swas in 1880 * Source: The Economist , 14 November 2009

10. HOW CHINA GROWS (II) • Veryhighsavingsrates of >50%; forfamiliesthisis 20% • Financialsystem has verylittleborrowings: • Loanstodeposits ratio: 0.66 (Spain 1.40) • In thelastChinesebanking crisis (2000), this figure was 0.90 • Reasonableinterestrates: Mortgages (6%), and accountfor a mere 13% of loans. Borrowingfrombankstobuylandisnotallowed. • Increase in propertyprices similar tothat of availableincome: 10% a year. • Little governmentdebt; including local bodies, thisis 75% of GDP. Thevalue of stateenterprisesisestimated at over 100% of GDP. CEO of Coca-Cola: “Itiseasierto do business in China than in the USA” (FT 26/09/2011)

11. EUROPE VS. USA

12. PORTFOLIOS MAIN FEATURES

13. TWO EXAMPLES OF INVESTMENT

14. BMW PREFERRED SHARES

15. BMW PREFERRED SHARES Página 15

16. EXOR

17. APPENDIX

18. THE AUSTRIAN SCHOOL Essential differences between the Austrian and neoclassical schools Página 18

19. THE AUSTRIAN SCHOOL (continued) Source: “The Austrian School”, Jesús Huerta de Soto Other sources: Mises Institute (www.mises.org) Source : Bestinver Página 19

20. C/ Juan de Mena, 8 - 28014 Madrid (Spain)  +34.91.595.91.00 bestinver@bestinver.es www.bestinver.com BESTINVER

21. This document has been prepared by Bestinver Gestión, S.A. SGIIC for informational purposes only and can be in no way considered an offer to participate in its investment funds. The information contained herein was compiled by Bestinver Gestión, S.A. SGIIC from sources it believes are reliable. However, while appropriate measures have been taken to verify its accuracy, Bestinver Gestión, S.A. SGIIC in no way guarantees that it is accurate, complete or up to date. • All opinions and estimates included in this document reflect the best judgment of Bestinver Gestión, S.A. SGIIC as of the date they refer to and may be changed without prior notification. All opinions issued herein are general in nature and do not take into consideration individual specific investment objectives or financial circumstances. • Under no circumstances can Bestinver Gestión, S.A. SGIIC, its managers, employees or authorized personnel be held responsible for any damage resulting, directly or indirectly, from the use of the information contained within this document. Information regarding past returns does not in any way constitute a promise or guarantee as to future performance. • All Bestinver returns are expressed as net, after expenses and commissions. They are denominated in euros. • Share redemptions and transfers of securities held for less than one year are penalised with a commission • Source of Bestinver return and fees data: BESTINVER • Source of sector return and fees data: INVERCO • Source of national and international rankings: BESTINVER. Bestinver funds, third-party mutual funds and equity index returns (Madrid SE, IBEX, S&P 500 and MSCI) are calculated based on the closing level on the date appearing at the bottom of this page. • Source of fund P/Es: BESTINVER • Source of market P/Es and Argentina Charts: Bloomberg • Source of Value Investors: “The Superinvestors of Graham-and-Doddsville” • Sources of Performance of diferent assets since 1800: Jeremy Siegel "Stocks for the long run" Irwin Professional

22. May 3 - 4, 2012 Mammel Hall Omaha, Nebraska