2010 - a bumpy road ahead?

1. 2010 - a bumpy road ahead? Investment Presentation Jersey – February 2010 Speakers Tristan Hanson Jonathan Schiessl Craig Farley

2. Jonathan Schiessl Ashburton Investment Models Japan: Loving the ‘unloved’ February 2010

3. A smorgasbord of Japanese companies Name: Nippon Sharyo Ltd Description: Manufactures locomotives, passenger and freight rail cars. Also produces industrial machinery and steel structures such as bridges Market cap: Yen83 bn • GBP588 m • P/E (X): 21.5 Topix P/E (X): N/A • Est P/E (X): 24.8 Topix Est P/E (X): 32 • Yield:0.88% Yield:1.78% • Gorilla theme: Infrastructure • Cluster: Rail 7 Source: Bloomberg

4. Nippon Sharyo 7 Source: Company

5. Nippon Sharyo 1964 (130 mph) Today (200 mph) 2020? (300 mph?) 7 Source: Company

6. A smorgasbord of Japanese companies Name: Daiseki Co, Ltd Description: Provides waste disposal services in Japan. Specialises in waste oil and polluted sludge processing, with leading-edge treatment technology Market cap: Yen79 bn • GBP560 m • P/E (X): 35.5 Topix P/E (X): N/A • Est P/E (X): 30.1 Topix Est P/E (X): 32 • Yield:1.08% Yield:1.78% • Gorilla theme: Clean & Green • Cluster: Waste 7 Source: Bloomberg

7. Diaseki 7 Source: Company

8. A smorgasbord of Japanese companies Name: Seven & I Holdings Co, Ltd Description: Holding company operating department stores, supermarkets, restaurants and Seven Eleven convenience stores Market cap: Yen1,826 bn • GBP12.9 bn • P/E (X): 30.3 Topix P/E (X): N/A • Est P/E (X): 18.1 Topix Est P/E (X): 32 • Yield:2.78% Yield:1.78% • Gorilla theme: Consumption / Restructuring / External growth • Cluster: Asian consumers 7 Source: Bloomberg

9. Seven & I 7 Source: Company

10. Seven & I – China opps 7 Source: Company

11. A smorgasbord of Japanese companies Name: Accordia Golf Co, Ltd Description: Owns and manages golf courses located in Japan. Pioneer of affordable golf, with low fee, high usage model. Linked to Goldman Sachs Market cap: Yen99.8 bn • GBP705.7 m • P/E (X): 7.15 Topix P/E (X): N/A • Est P/E (X): 10.01 Topix Est P/E (X): 32 • Yield:1.05% Yield:1.78% • Gorilla theme: Asset play • Cluster: Deflation buster 7 Source: Bloomberg

12. Accordia Golf 7 Source: Company

13. Accordia Golf 7 Source: Company

14. A smorgasbord of Japanese companies Name: Nihon Unisys Ltd Description: Provides integrated IT services through a one-stop access to consultation, provision and maintenance of IT requirements Market cap: Yen60.7 bn • GBP429.4 m • P/E (X): N/A Topix P/E (X): N/A • Est P/E (X): 13.63 Topix Est P/E (X): 32 • Yield:1.81% Yield:1.78% • Gorilla theme: Valuation • Cluster: Cyclical recovery 7 Source: Bloomberg

15. Nihon Unisys 7 Source: Company

16. Conclusion • Japan is a classic stock pickers market • There are plenty of interesting companies (and plenty of un-interesting ones) trading at valuations unmatched elsewhere • Japan Inc is well placed in a variety of sectors that have multi-decade structural drivers • Don’t let the headline macro picture hide the fact that from a bottom-up perspective there is plenty to buy in Japan, offering excellent potential returns 7