Global Equity: Pure Fundamental Approach. Your future and present - PowerPoint PPT Presentation

Global Equity: Pure Fundamental Approach. Your future and present budget GVC Gaesco THT Global Equity Fund: Investing in the sectors with an increasing share in private and public budgets

Eurozone household expenditure evolution 2 | www.fondos.gvcgaesco.com

US Healthcare expenditure of US Households as a percentage of final consumption expenditure Health expenditure % of final consumption expenditure of US Households 21.8% 21.8% 21.4% 20.9% 20.9% 20.9% 20.9% 20.8% 20.8% 19.7% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: GVC Gesco Gestión, SGIIC on OECD Stat 3 | www.fondos.gvcgaesco.com

IT & Communications & Healthcare Sectors: Increasing stake of the Global Corporate Capex Source: Global Corporate Capex Survey 2019. S&P Global ratings 4 | www.fondos.gvcgaesco.com

UK Central Government Spending Source: Apsiz Services LTD. 2014 5 | www.fondos.gvcgaesco.com

ICT Spending keeps growthing at a very fast pace Worldwide Source: ICT 2018 – 2022 Spending Forecast. IDC 6 | www.fondos.gvcgaesco.com

Investment Process Client Experience Company Primary Search Qualitative Analysis Fundamental Valuation if possible Strength of the business and Analysis of the consistency of Analysis of the performance Customer perception competitive advantage of the the management team expectations company through one to one meetings Medium-term consistency of the Medium and long-term view of Sales, margins, and results Experience as a customer the management team expectations (whenever possible) business model Credibility of the management Analysis of the internal cycles of Specialization team. Quality management the business activity Leadership in the sector Shareholder structure Business valuation: discount operating cash flows. Clear sources of profit generation Analysis of the fundamental Margin stability discounts of the companies Cash Flow sustainability Monitoring the discount lifecycles Level of internationalization Quarterly review Appropriate Financial Structure 7 | www.fondos.gvcgaesco.com

Portfolio Construction Company Primary Search Qualitative Analysis Fundamental Valuation Client Experience  “Bottom Up” approach with a “Macro Overlay” Portfolio Construction  Maximizing the Fundamental Discount of the portfolio  Concentrated portfolios from 30 to 60 companies  Low turnover  Active management: Wide Tracking errors  Permanent monitoring of the portfolio  Portfolio liquidity test*: * Liquidity tests are calculated assuming that we can  Days to sell 50% of the portfolio: 5.1 Actual negotiate 30% of the average volume in the last year for each  Days to sell 75% of the portfolio: 7.6 particular company  Days to sell 90% of the portfolio: 9.1 8 | www.fondos.gvcgaesco.com

T E C H N O L O G Y H T Some of our current holdings:

Nidec Corp.  Nidec Corporation operates as a world's leading manufacturer of small precision motors mainly used in HDD and optical disk drives.  The company has extended its focus to the home appliance and automotive markets.  NIDEC is active in M&A and its subsidiaries include the world's leading manufacturers of LCD panel handling robots and camera shutters.  6.47% GVC Gaesco T.H.T. Sector Country Market Cap Employees Technology Japan 32.940B EUR 107,554 EBITDA Net Million EUR Sales EBITDA Margin Income 4,199 M 627 M 14.9% 266.3 M 2007 11,489 M 1,741 M 15.2% 1,016 M 2018 2019 E 11,851 M 1,858 M 15.7% 964.6 M 2020 E 12,801 M 2,316 M 18.1% 1,224 M 10 | www.fondos.gvcgaesco.com

Expert System  Expert System offers semantic analysis products and services which include semantic and natural language text searches, text analytics, development and management of taxonomies and ontologies, categorization, data and metadata extraction and natural language processing.  Explore all of our text mining applications based on solution areas or vertical sector: Banking & Insurance, Defence & Intelligence, Public Administration, Life Science & Pharma, Oil & Gas, Media & Publishing.  2.88% GVC Gaesco T.H.T. Sector Country Market Cap Employees Italian 119.8 M EUR 214 Technology EBITDA Net Million EUR Sales EBITDA Margin Income 28.7 4.6 16.2% -3.7 2018 33.1 7.2 21.8% -1.6 2019 E 37.4 9.3 24.7% 1.5 2020 E 11 | www.fondos.gvcgaesco.com

SOPHOS Group PLC  Sophos Group PLC provides information technology security and data protection products.  The Company offers protection against viruses, known and unknown malware, spyware, intrusions, unwanted applications, spam, policy abuse, and data leakage.  Sophos Group operates worldwide.  2.61% GVC Gaesco T.HT. Sector Country Market Cap Employees Technology United Kingdom 1.443B GBP 3,260 EBITDA Net Million EUR Sales EBITDA Margin Income 548.3 M 24 M 4.4% -45.1 M 2018 624.9 M 96.5 M 15.4% 46.8 M 2019 E 2020 E 684.6 M 112.7 M 16.5% 63.6 M 12 | www.fondos.gvcgaesco.com

Teradyne Inc.  Teradyne, Inc. designs, manufactures, sells, and supports semiconductor test products and services on a worldwide basis.  The Company's test equipment products and services include, semiconductor test systems, military, aerospace test instrumentation, circuit-board test, inspection systems, automotive diagnostic, and test systems.  2.29% GVC Gaesco T.H.T. Sector Country Market Cap Employees Technology USA 6.910B USD 4,900 EBITDA Net Million EUR Sales EBITDA Margin Income 1,780 M 507.9 M 28.5% 341.1 M 2018 1,835 M 507.9 M 27.7% 333.2 M 2019 E 2,120 M 594.6 M 28% 416.5 M 2020 E 13 | www.fondos.gvcgaesco.com

T H E A L T H C A R E T Some of our current holdings:

Medtronic PLC  Medtronic, PLC develops therapeutic and diagnostic medical products.  The Company's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders.  Medtronic's products are sold worldwide.  5.01% GVC Gaesco T.H.T. Sector Country Market Cap Employees Health Care USA 122.139B USD 86,000 EBITDA Net Million EUR Sales EBITDA Margin Income 25,364 M 7,728 M 30.5% 4,246 M 2018 2019 E 26,958 M 9,050 M 33,6% 6,164 M 28,057 M 9,356 M 33.3% 6,403 M 2020 E 15 | www.fondos.gvcgaesco.com

Fresenius Medical Care AG & Co KGaA  Fresenius Medical Care AG & Co. KGaA offers kidney dialysis services and manufactures and distributes equipment and products used in the treatment of dialysis patients.  The Company also offers clinical laboratory testing and diagnostic testing services and provides home infusion, respiratory therapy, ultrasound, and echo-cardiography.  Fresenius operates worldwide.  3.62% GVC Gaesco T.H.T. Sector Country Market Cap Employees Health Care Germany 21.724B EUR 112,658 EBITDA Net Million EUR Sales EBITDA Margin Income 16,546 M 2,880 M 17.4% 1,116 M 2018 17,356 M 3,245 M 18.7% 1,332 M 2019 E 2020 E 18,367 M 3,503 M 19.1% 1,452 M 16 | www.fondos.gvcgaesco.com

Grifols SA  Grifols S.A. develops, manufactures, and markets plasma derivatives, IV Therapy, enteral nutrition, diagnostic systems, and medical materials.  Grifols is a global healthcare company dedicated to improving the health and well-being of people around the world.  Established in Barcelona, Spain in 1940, an industry leader in the production of plasma-derived medicines, with 20,000 employees across 30 countries.  1.02% GVC Gaesco T.H.T. Sector Country Market Cap Employees Health Care Spain 15.429B EUR 18,456 EBITDA Net Million EUR Sales EBITDA Margin Income 4,486 M 1,233 M 27.5% 581.7 M 2018 4,862 M 1,369 M 28.2% 735.3 M 2019 E 5,206 M 1,500 M 28.8% 829.6 M 2020 E 17 | www.fondos.gvcgaesco.com

T H T E L E C O M Some of our current holdings:

Euskaltel  Cable operator in some regions in northern Spain: País Vasco, Galicia & Asturias  Leading position in these regions  Euskaltel S.A. operates as a global telecommunication company. The Company offers wireless telephone, internet, television access, and other services. Euskaltel serves its customers throughout Spain.  3.90% GVC-Gaesco T.H.T. Sector Country Market Cap Employees 1,489 Cable Operator Spain 699 Million EUR EBITDA Net Million EUR Sales EBITDA Margin Income 2009 339 118 34.7% 26 609 280 46.0% 59 2017 2018 675 316 47.0% 78 2019 E 698 342 49.0% 74 2020 E 707 346 49.0% 80 19 | www.fondos.gvcgaesco.com

Softbank Corp.  SoftBank Corp. provides telecommunication and networking services.  The Company offers mobile communication opening, short messaging and video function opening, and other related services.  Softbank also sells mobile phones.  Recently the company execute a 6.5% stocks buyback  2.46% GVC Gaesco T.H.T. Sector Country Market Cap Employees Japan 93.744B EUR 74,592 Communications EBITDA Net Million EUR Sales EBITDA Margin Income 16,969 M 3,427 M 20.2% 192.2 M 2007 70,714 M 23,132 M 32.7% 8,475 M 2018 76,491 M 24,727 M 32.3% 9,277 M 2019 E 77,985 M 22,240 M 28.5% 10,570 M 2020 E 20 | www.fondos.gvcgaesco.com