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HomeMy WebLinkAbout2008 10 28 Document Distributed to Board Members Under Agenda Item Regular 600Date: October 28, 2008 ATTACHED DOCUMENT WAS DISTRIBUTED TO BOARD MEMBERS UNDER AGENDA ITEM REGULAR 600. Contact: Institutional Services 100 South Fifth Street, Suite 2300 Minneapolis, Minnesota 55402.1240 800.553.2143 •612.376.7000 vvww.voyageur. net Voyageur Presenters: Michael M. Spencer, CFA Managing Director Senior Portfolio Manager A~SE'T ~1'LA~TA~EEI'~TT I~T~C_ City of Winter Springs Pension Plan October 28, 2008 VOYAGEUR OVERVIEW VOYAGEUR ASSET MANAGEMENT INC. Our Organization as of 9.30.08 Established in 1983, Voyageur Has Over 25 Years of Investment Experience $32.9 Billion in Total Firm Assets Under Management $31.6 Billion in Voyageur Institutional Services* Voyageur is Headquartered in Minneapolis, Minnesota and has Offices Located in Chicago, Illinois and Boston, Massachusetts The International Equity Strategy is Sub-Advised by Polaris Capital Management, LLC. • Polaris is Based in Boston, Massachusetts • $2.7 Billion Managed by Polaris • Experienced Portfolio Management Team Voyageur Institutional Services ("VlS) is a division of Voyageur Asset Management Inc. ("VAII/I'), PORTFOLIO OVERVIEW VOYAGEUR INTERNATIONAL EQUITY Overview Objective: To Identify the Best Values in the World • Disciplined, bottom-up value approach • Proprietary investment technology • In-depth fundamental research • Team focuses on absolute risk • Seek high risk-adjusted returns that exceed the global cost of equity Underlying Belief • Companies exist to generate cash flow for owners • Superior returns can be generated by purchasing the most undervalued streams of "free" cash flow VOYAGEUR INTERNATIONAL EQUITY Annualized Returns (%) as of 9.30.08 Since $ Managed - $1,745,815.79 QTD YTD Inception* Voyageur International Equity Fund MSCI-EAFE Index -24.28 -20.50 -32.73 -28.91 -39.56 'inception Date: 11.1.2007 Source: Voyageur, MSCI -32.72 All returns for periods greater than one year are shown on an annualized basis. Past performance is not indicative of future results. Returns prior to 1.1.07 provided by Freedom Capital Management, LLC. VOYAGEUR INTERNATIONAL EQUITY Composite Performance as of 6.30.08 25% 15% 5% -5% -15% -25% -35% -45% ^ International Equity (Gross) ^ MSCI-EAFE Index All returns for periods greater than one year are shown on an annualized basis. Inception of the International Equity Composite is 7.1.98. Performance of the Voyageur International Equity composite is shown gross of fees and is presented as supplemental to the "Performance Presentation and Disclosures"Appendix to these materials. The Appendix contains additional GIPS required disc%sures and important information regarding calculation of performance data, including the general effect of advisory T ~ fees on returns. Past performance is not indicative of future results. V{~~'~~('Ll~' =1~~F~'1- ~V~:~~1:~[~F~~IF-~~ ! 11~c-- QTD YTD 1-YR 3-YRS 5-YRS 7-YRS Since Inception (7.1.98) VOYAGEUR INTERNATIONAL EQUITY Sector Weightings as of 9.30.08* 30% 25% 20% 15% 10% 5% 0% ^ International Equity Source: MSCI Blue Book Sector weightings are based on a representative account, ^ MSCI-World Index Information Health Care Industi•ials Consumer Financials Energy Consumer Materials Telecomm. Utilities Technology Discretionary Staples Services VOYAGEUR INTERNATIONAL EQUITY Top Country Allocations as of 9.30.08 (% of Equities)* Country Voyageur Portfolio MSCI-EAFE Index Japan 23.0% 22.1 Germany 9.5 9.0 United Kingdom 8.7 21.7 France 7.8 11.0 Finland 7.5 1.4 Source: MSCI Blue Book Top country allocations are based on a representative account, VOYAGEUR INTERNATIONAL EQUITY Buys and Sells: Third Quarter 2008 New Investments N/A Investments Sold UPM-KYMMENE OYJ SAPPI LTD This should not be construed as a recommendation to buy or sell any financial instruments. VOYAGEUR INTERNATIONAL EQUITY Strategy Review Third Quarter 2008 was a Challenging Quarter for Investors of Almost All Asset Classes ... The Combination of Declining Economic Growth and the Worldwide Credit Crises Proved to be a Daunting Headwind • Investors in Voyageur's International Investment Strategy were not immune - For the quarter, returns were down 24.5% (EAFE returned -20.5%) -Year-to-date, performance is down 32.9% (EAFE returned -28.9%) Investments in the Industrial Sector were Disappointing in the Third Quarter • Despite choosing to invest in geographic regions which are experiencing positive cash flow and industries which we believed would provide investors with the best opportunity to hold value, our portfolio suffered • Port facilities are being upgraded in much of the world, especially in areas with high cash flow like the Middle East - Despite that, Cargotec, a company benefiting from this trend, delivered -42.7% for the quarter - YIT, a construction company, which has benefited from significant construction growth in Russia was also a large drag on the portfolio by delivering -59.3% for the quarter Lack of Investor Trust between Counterparties in the Financial Sector Led to Well Publicized Difficulties • Valuations in the Financial sector have become very attractive • Companies which we believe to be fundamentally strong with strong free cash flow have been universally punished - Anglo Irish Bank and Bank of Ireland hurt performance in the quarter - Since quarter end, the Irish government has publicly and fully guaranteed the debt of both companies -which hopefully will instill investors with confidence VOYAGEUR INTERNATIONAL EQUITY Outlook In Times of Credit Contraction, Once More Orderly Behavior Ensues, Companies with Strong Free Cash Flow Tend to Do Extraordinarily Well since They Don't Need Credit to Grow • While we cannot predict when more orderly behavior will occur, we are very excited about how cheaply we are now able to purchase free cash flow We Believe Markets are Attractive at a Price to Cash Earnings Multiple of Six to Eight • These multiples have been much higher than that, getting over 12 in the U.S. -Currently, the U.S. market is at a multiple of 9.2 times cash earnings • EAFE, our international benchmark, looks much more attractive at a price to cash earnings multiple of 6.4 • Our International Equity portfolio has a price to cash earnings multiple of 4.4 - We seldom get the opportunity to purchase strong companies at such a low price APPENDIX PERFORMANCE PRESENTATION AND DISCLOSURE International Equity as of September 30, 2008 ~~u~u~a~ ~~Tu~r~~ 1'TD 1'T@~ M'S~C-EAFE C~rnpo~it~ Nu~m~ber Df ~~rket P~r~e~4; of Ta#al Per~1 Gn~i~ Net index bi~per~io~t J4C[o~unt5 'V~9~,e ~~141hA~ ~IRf17 s5ets ~~Em As~e#s i998' -1~.+Q°,~ -1 ~A~ 3.~°~'a hUA#" 1 ~1 Q - ~6,79T.~ 1999 ~~.1'4b 21.0° ~ ~7'.~°~ h1JA"* ~ 1 } $~1~ ~ - } 36,81.3 ~~0 -~,~96 -5.~i°~a -14.Q°~u h,~+''A" 1 ~1~ - ~14,10~.~~ 201 €i.~3~"a ~ -0.2 ~ -~ 1, 2°l~ hU~,* ` ~ 1 ~ '319 ~ - ~ ~ 16, 061.3 2Q~k2 5,9°!6 ~.,9~ ~15,~"°~ f~J'A** 1 ~~1 - ~~Do24~,8 ~~173 5+1.9°6 ~ ~3s~~6 ~ 39,2° f~"A** ~ 1 ~ X34 ~ - ~ ~~~,~18,~ ~~ 29.8'6 28.6° ~~7.~o f~UA** 1 5917 - 36,.858.3 ~~DS 1~.7°!a ~ 15.6°a~ ~ 14.~',~ N!A** ~ ~ 3153 ~ - 3~7,b1$.$ 2~7D6 34.fi~ 33.3 2f~.9~'~h N!A*'" 383 - 358..1 32$ 2~0~ 1.x'36 0.8'4 11.1~°.~ !~.~°~ 3 378 1.2°6 , 332,045..1 ~ 1'L19 -32.8 -33.3°~O -28.9 ~.~ ~ 390 <1"~ 331,64~a~1 *~p~€c~rrrrara[~ ~a~twk~te~ ~ro~ 7.?,~~ t~ T?.~?.9'~ `*fiIJ~4 - ~rrf~~or~ t`~ rro~ s1~#~bic~l'r~ rr~e~n~rrgfe~ d+.+~e to arr t+rr5uff+c+'err~ rr~n~ber ~f,p~prt~~'r,~5 ~i'+ bhe c~ura~~ ~r t e+a~r+ae yr, ~r~r [c~ ,~nc~ry T, ~ the f~rrr~ w,~as ~e~ine~d too i~d~ a~! ,~rror~ary ar~d r~ar".~cr~tionary ~~ rrxan' ~y .seer n~~,err~ fe~c. ~~rrrra.race ~t~r arro' ~+s~ures C~~' ar+ next ~9e~ VC3~'~.~~''L~r :"-~SgF'1 i'v'1:~~1r~[~F:~1~1F~"C- IR('_ 14 PERFORMANCE PRESENTATION AND DISCLOSURE International Equity as of September 30, 2008 ~aterrt~t+a~1 EquPty ~,a~,v~sate cor~tair7s da5cr~~xra~ ~+e~n-rt, rn~ci u~ a ~' ~ ~` ~ ~-+!` s~eeme~! tca be +.n~d+en+~Pr.~' by 's r'ri~~+t terra- ,ar~tarrg ~_ P . Arcs ~t~f ~iL ~~ is ~e garb-afar far Chas s~rat}r. fur ro~rrs~t ors, ire ~orCr~e rs ~reaa' agha,~rsf the ~dSC'~~ ~~ ids f of !tta'drr tau~es divisr. Fffeact ~ ,~ J_~5, tfre frm~ ~ tfre taerae~ac fear ca~pa~nsor~ p~rpases ~~ ,let arrdex tea the ~±J5~1-FAFf Gas ~'ex in tc~ ~G~rr #~e c~fr~aar e~gdr'n5t the ~ rr+v~e ~ r~ypc~'e+~ ~ ~5~7 ~E x + ~~ x +ates ~~;~+ ~ ~ ~~r~ '+,~ cv~~ Ara~alGtia,~~ al~OrarNatr~r~ r~araMrx~ t~'~er~tre e~f ti-e c~r~n~ia~rte ~Ih may she ~ rrl [r ~r aris r~dt uacfi~val~ar ua tf~e dry is Wit. 7`ir~ mar~,i~n~rrx ~~rmt fcx t~~s e~asite ,~ ~P ~r-4iarr. 'k+~r~ge~ur,h~srit~rkxraf Sees f~5 } rs ~ a~ oaf i~y+e~rr Asser ~t . ~"v ~r a federaft~ r'sterea' nrnraeat adrrrse~r faaxrded rrr Tom, V.~ Au,~rhased ~ e~rb~r ~y +~C ' hrke ~ •fl Inc. -i~r Ana fi k~usche+r t=ea. t~rr T-S.t?~ '~A~ ~rr[~dS2d5r;~Srrt.~~Jy a~-' of t d~ €tif ~~ C~,p ~'ta+aa~rn~a~ tZ~ ~ ~reed4rrra ~- Pfacr to ~_~. ~T ~rf~rra~r~re ruts tlaa[ crf a ~arrapo~te from ~reearr_ {rrrn ~~~ a ~rarxrp~ete ~4st a,rd d,;ptnc~r cif ~`. vwfir-ch ~ ~vaif~~e ~~ ~ffect~~e i. p.# ~~ wrap f~el4 b+ de~rned a~ ~ serrate tfravr the rravr~e Ub~eur ~+ ,Ser~~ces ~ ~`[~ ~aurpases of 1~5 ~~ C~a tPae rr~tat~te"s rrzaa'm~r~rt ~~ s~ ~"~r"~- ~-~., tt~e ~+~s°-crat ~o' c~sa~ra~dr~rety a~ ~ u~~. ~~~ ~, r_ r~~+ meets r~t~ by a~sers ~trY ° t~efare the d~t~. Tcaf~f ~;rrn vwere t ~a~t 11.E haste ~ ecretra~c>~urrts under ~~ ~ vase its ,er nh . ~+ r_~_~PTp ~irsrtes aeh t atcaem~ cue ,~tatr°c~+ tffe te~r~o+ r~mov~J'taf a cart Tritiated si~rrafr`e~€at cash ~ ar cwtaw ca'f at t 10°6 of :~, ~e t~aara~+r cif st~h ~ ~ ~ at rh+ee ~ a~f raxata~i ~ which n~fi+~n# c~sPr acr+ ~krrit r~-,~nt~rs r chi the ~rs-i rr~r ~~ t f ~4dalGtrfr~a{arafcrraraatron ~ treatment caf s~arfarar~t cast, f as ~at~e u~ara negerest. Paste ~ raot ~,dta,~ of futr.,re r~esa~ts. ~'~ne ,perfavrr~race a aore~err#~ed'raed of fir wra~ing tax~es_ the r~nadex ~ aenr~ wd5er~e is ~a~ to ref,~ct ttae srtiarr of arr anteltie inr~stor nth ehe eft of da~'e taacatitua ag~'eerraerat~ if arryc ~ahd'~; taxes ray a,eca~dG;r~ tti tyre irat~ta~s ~'a~rra~~e. ~gpcasitae r~tan~rs ~r rsr'exs aie rn t.har'recf 5rat~ Tlac~ ~ C~+r+trr~g rs ~rsed end' r~terrrt5 yrr: rrr U-S. ter, Rekr~ms a pbe efieCt ~f f€ign ~Y exrx~p r~#es- ~ ,~nnr~i ~ a ~ by t~ egz+a~' vetted s~anaiard :t~xr add aa~atMa~ ire tJae earrt~ fix ~ y Praa~t to f _ i. ~~; met ~t`ed st~n~dar~ c7fti+c~ s if there rraare than {rye fs n~ t~ ca~raa~sate fio~r a ~c ~ ids are ,~uted ~d rapt caf ~t lees acrd irrc?4~ahe the ~t pr` a~ ir~[~rre.:af r~t~rrrs ~ reduce' ' ink, r~rt any des a thd~t errcrar ir'r t. ra7~,~rrra@rrC ~f Wit. + +~f ~ ~ ~~ ~ p,~r tai +~# ~f ++r+ r m~r~,xn~at . Fv~r ~s ~ ~ i~? m,ra ,pare earairr~ .a T aruaual~ea' retamt aver 5 yiears wvfd be w.ala,+ed' at ~ i~.4 ~r~xa- Zpae sa,r~e ~ dh an a~ of f?. ~5'9b ,F~ ~ vaJ4~ed' at ~~_~ ~ of r~~~estrrnent ++~-a~e+frrerrt f ~~ d~s+tri nFr ~arrrr A.ph~ halt ~'. ~doi°tao~rrai irrlfi~rrna~ti[~ rerd'rrx~ ~ i~ r~trng,avx~ re~cudu~ ref~urns ~ a~ uvc~rr riegrrest. ~rrtut ~,° ~, ~~96 a~ aet~. 'yaq~r rem tine rift tea ratite ~ ~ fees.. 7fae Trterrratia~ "ty Cc,posrt~ vas are~tea~ ara ~.~~€~~ ~n+d bras are rr~ce~ti~arr date of T. ~~~8. 'IBS ~aas,r~-~pare~'and„prete~f t~irs repast in ~~a-rr~iar~€~ w%~ tie Gklratrrreart Sipl I'GdF'S"~. ~#~ ~?th ~' ins b~era ~rar~d ~Y ~~ ~ f . P_~3 ttrroe+~h 1~~e ~ ~ ~, ~ ~ ex~raara~r ca~ad4~cteat arr Nae ~Gf temati+o~aJ' f~urty Carraate ~ 7. ~ . ~!8: T~aerr rrt ~ avariabl~ req~res t. ~ 1~o~,vA~et anarttlat VC3~'~.~~''L~r :"-~SgF'1 i'v'1:~~1r~[~F:~1~1F~"C- IR('_ 15 APPENDIX II FINANCIAL MODEL The attached model is an illustration of fundamental analysis performed by Polaris. There is no guarantee that the holdings of an actual account will always be identical to the holding presented here. This presentation should not be construed as a recommendation to buy or sell any financial instruments. The information contained herein should not be relied upon as the sole investment-making decision. Polaris Capital Management Financial b~iodel b~iETfL1NE~ COI2P TIChER KLl_ ($ n~LLIONS, EZCEPT PER SHAKE ) SIi': ? 860 UICS. IISD IISD IISD II SD IISD Historical Dat<~ Projection Dec03 Dec0a Dec05 Dec06 Deco- D ec08 Dec09 DecIO Decll Dec(' Dec73 Projected Sales Growth: Q00°'o 23.47°0 023°0 3iJ1°o -3.28°0 -li.6°0 -17.6°0 -1.0°o C,.1°~0 -~0°.0 trrossPiafitl~4argm 0?5 0.23 0.27 033 0?9 14.2°b 34.2°0 166°0 160°0 20.0°-0 197°-0 Lraentorp Turnover 0.000 0.000 0.000 0.000 0.000 0.000 1 Lanua7Orenide 7 32 S 31 S 31 ~ 48 4.77 7 70 110 ~ 30 ~{ 20 3 9l1 3 90 Lrvznh,rv 126 769 142 417 139 774 241 019 312 620 312.13 326 42 339 37 371 11 403 ~7 392 7S NetRec.~Snles 0.1%1 O.ISS O.ISS 0.169 0.192 O.ISI O.ISI O.IJI O.ISI O.ISI O.ISI ilLanualOren~ide 0.1-1 0.1-0 0.210 0'.S 0.230 0?30 Net Receivables '_20 941 293.811 291.821 366.767 402.435 406.952 402.611 410 026 433.831 462.397 433.847 _7P'Sales 0.195 O.IaS O.la3 O.Ia3 O.J33 O.ISS O.ISS O.ISS O.ISJ O.ISJ O.ISJ 1LnnnnlOrenide 0.16 0.191 0.23 0_°6~ 0.?6~ 0_°6~ AceountPavaLlzs 173.47( 231 "'33 _21 330 309.837 -466.733 463 OS3 461 319 45S S;9 4.91 469 >21.470 505 C:29 weragz CollzctionPzriod 1391 13 I9 66.51 55.07 66.10 62.5( C21( 6? 1( C21( 621( (21( I~humal Override :~ccowrtKzczieablzs 211.03643? ?57376 294.313 331.2.96 354.612 457 726 411 564 339 307 ~,, ,q? 341 967 331.575 SG~IE.'Sales 0.000 0.000 2000 0.000 0.000 0.000 llm~irnl Orenide SU.?,E OOH) On)ri ~ni00 ~i0ri tni0ri Oi0ri Dzpreciahon Kate 0 031 0 031 (i 031 0 031 0 031 G c1 llm~iEnlOrenide ~~ t)2Ci 01126 X1026 0.026 0.026 0.026 nfi'.~PE~ 207.731 IS3 163 177._9(1 40 ~)0 40 i~)0 40 ~)0 50 200 ,0?00 30?00 Cinnvtlr Cr~F'ES '79 (100 27.9.000 63-000 TalRate 9k9°=o 2S 7°0 42.5°'0 266°'0 oS X00 033 033 031 0.31 031 0.31 LT Debt Change -11?32 -11?32 -36.077 -40 137 ?4U Ci19 ~-4]_619 hrtereat Rate on Debt 7.0~ 0 73°-o S3°~o 5.7°~0 7 7° 0 7 4° 0 7 4°0 7 4° 0 7 4° 0 7 4°0 7.4°0 ~~ ACC 10.35°~0 I"rs of Projection 4 Dilutive Shares Basic Sharze Outstanding 120-005 120-022 113-645 105-501 95310 94-000 94-000 94-000 94-000 94-000 94-000 Convertible Bonds 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Convertible I'reYerred 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Convertible ~~'ana~nts 0-000 0000 0000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 0000 C'onvzrtible Options 3.664 3.516 0367 2567 3.01 3 3C0 3 3C,0 3 3C0 3 3C,0 3 560 3.560 Less Trzasuiti~ Stock 0.000 0.000 0.000 0.000 0.000 0 000 0 000 0 000 0.000 0.000 0.000 Fully Dilutive Shares 125.672 123-575 114-012 103365 101335 97-560 97.560 97.560 97.560 97.860 97-560 Tot<a1 DebC Total assets 373i~-b 23.66°-0 25.42°-'0 21.09° 0 21.97° 0 20.18°-b 2?.79°-b 2136°-b 19.78°-b 13?6°-~o C 50°-'0 1. Dividend Paj-out Ratio 779 62°.0 14.13°.0 23 91°,0 10.87°,0 14.65°-a (L00°a 0.00°a (~ 00°a 0.00°.0 0.00°.0 0.00°.0 B-NetI'i,fitl~lugms Oi4°-o 13-75°0 10-00°0 2291°0 16.57°o iS7°o 11-65°0 1.12°o s0~°o 58~°0 1~s7°o C. Asset Tm~noaer 61 93° 0 74.75° 0 76_°S° 0 85.54~b 72 87°b 9~ 20°'0 68 46°'0 ,i 41°-~ ti l So°-~ 5134° 0 13 73° o D_Total ~SSetsiTotalEquih- 265.65°.'o 223.85°.'0 220.55°.'o 20?07°,0 214.92°,~0 20045°0 194.59°0 156]4°a 15192°a 165.19°.'0 147?7°.0 E-SustamablzGrowting*[(1~~Y"B*C*D] -6.02°0 19]7°o 1196°0 36.13°o 22-16°0 10.96°0 15-52°o 171°o 4J1°o 5-07°-0 10-730'0 F g+~Potential E~h~ Urowtln=E-Sales growth -6 0°0 -3 7°'0 11 7°0 0 3° a 21.4° b 11.0° 0 31 1° o ?~ ~° 0 9 7° 0 2.0°b 13 5°b Dec03 Dec0a Dec05 D ec06 Deco- DecOS Dec09 Dec10 Decll DecL Dec13 Salts 1259.179 1192.191 1i91.73> 316702 2094.(12 2506.17 23(330 191?11 155460 19(,7.31 1905.03 Cost oT c_ Dods Sold 927.433 1139.964 1161071 1343.324 14.91.71 2406.57 17.9531 1625.97 1555.65 157393 1531.56 dross Protit 362 147 402.:'31 434.714 321.573 602.566 X99.699 i7? 992 323 136 291 946 393 330 376:.176 adnwnistrative Expense 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 OperatmgLncomeBefireDepree. 362-147 402-331 434]14 821-S7S 602-87 X92699 572992 323-536 295-946 393-850 376-176 0?S1 0.^_13 0^_72 0379 0.238 0.142 0?42 0.16( 0.160 0.300 0.197 Polaris Capital Management Financial Model 1\IETH.~NEl CORF TICKER. NLl_ ($ It'IILLIONS. EICEPT PER SHARE) SIi': 2,560 UICS. NSD NSD NSD NSD NSD Historical Date Projection Dec03 DecOa Dec05 Dec06 Deco- D ecOS Dec09 Dec10 DecI1 Dec1' D ecI3 Depreciation oY Fited assets 0.000 0.000 0.000 0.000 0.000 11? 435 11? 435 L3240 123240 123.240 0.000 ~u rntizahon 0-000 0-000 0-000 7-508 2024 7-024 7-024 7.024 7.024 7-024 7.024 Depreciation, Depletirni, ~ amortization 57955 72.873 57.796 109.739 103901 119.43) 119.43) 130264 130264 130264 7.024 OperatingYrofit ^_74.192 3293>6 34(,.919 7L.135 49596> 250.^_39 433.333 193.^_72 161.(52 2(3.(13 369.1>2 InterestEtpense 54>54 50.465 47.401 45.501 44.456 45.133 55.557 55.577 52.592 35015 17145 Non-~ )peratuig LiannelEspense -13-4 249 25 232 -22.133 9.560 28.700 -I 1 -17 -19 -__ -23 -23 Special Items -163.709 0.000 -~Ci_693 0.000 0.000 0 0 0 0 0 0 PretasIncome 85359 307119 X77365 676 197 483209 25.727 x11.802 156.180 135.U72 251.735 375.1x5 TotidLicomeTaaes 75.443 85.179 117.844 150.057 136.034 SI.090 133.593 45.416 41.572 78.035 116293 IL-finorih Interest 0-000 0-000 0-000 0-000 0000 0 0 0 0 0 0 Licome Before EstraorduiaiV Items& DiscontinuedOperations 6944 215940 159521 4.96-110 347.175 164.637 273-907 107-764 93-1.99 173-6.97 255.550 YrefeixedDividends 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 available for Common 6.944 215.940 159521 496.110 342175 ICi4_C,37 273.907 107.764 93.199 173.697 255.550 Evtraordmarj-Items 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Discrnitumed Operations 0-000 0-000 0-000 0-000 0000 0 0 0 0 0 0 ~djustedNetIncome 6 944 215 940 li9521 496.110 347 175 16x.637 275.907 107.76a 93.199 173.697 258.850 IL~TH.~NEN (DRY Dec09 Deco-1 Dec05 DecOh Deco` Dec-00 Dec-UI Dec-U' Dec-03 Dec-Oa Dec-Oa Earnings Per Share Basic - E~cluding E1tra Items ~ Diec Op 0.037 1.505 1334 4.349 3.414 1.75145(1207 2 935155354 1.14(42(1053 0.991452565 1.547542553 ? 75372357 Earnings Per Share Basic - Licluding Extra Items ~ Disc Up 0.057 1.508 1334 4549 3.414 1-75145(1207 2.933153334 1-14(,42(1053 0._991452563 1.347842583 .75372357 Earnings Per Share Diluted- Escludmg Extra Items & Disc Op 1.682 3.51.9 1.101 0.952 1.775 2.643 Earning Per Share Diluted - LieludingEsh-aItems.~;DiscOp 1-653 ?-519 1-101 0952 1)75 2-645 EYS Basic from Operations 3 015 331 3.525 7.765 6 132 4.252 6.()9( 3.442 3.145 4.190 4.002 EYS Diluted from Ups 4.054 5.555 3306 3.024 4.025 3.544 DivielendeYerShare 0-137 0-000 0-000 0-156 0-000 0-000 0-000 0-000 0-000 0-000 0-000 Corn Shoes for Basic Eps 122 962 121.51( 117.76( 109.111 101.717 94.000 94.000 94.000 94.000 94.000 94.000 Corn Shares for Diluted EPS 97.560 97.560 97.560 97.560 97.560 97.560 Statement of Cash Flows INDIRECT OFER~TING ~CTI~TTIES Income Before Elhaordinar~~ Items 0.944 215.940 157 521 496.110 347.175 ICi4 637 275.907 102764 93.199 173.697 255.550 Depremation<md.~uortrzahon 57.955 72.875 57.796 109.740 103901 11.9.459 11.9.459 10264 130264 130264 2024 Elh~aordinar~-Items~uielDisaOperations 0-000 0-000 0-000 0-000 0000 0 0 0 0 0 0 Defen~edTales 41.33( 43202 63072 21.412 -12306 0.000 0.000 0.000 0.000 0.000 0.000 Equin~uiNetLoss(Earnings) 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Sale of Yropern-.. Plant, quid Equipment and Sale oY Investments - L yes (Cam) 0.000 0 000 0 000 0.000 0.000 0 0 0 0 0 0 Fwids from Operations -Other 170.515 11.940 ? 122 1? Ci34 12707 0 0 0 0 0 0 Receivables-Decrease(Licrease) 1-602 -66951 35.751 0.000 0.000 4-494 4341 -7.415 -21505 -16)65 13)49 Inventors -Decrease (Increase) 0510 -14.412 2255 0.000 0.000 0-040 -13 539 -12 949 -31 739 -32-464 10 755 accomits Yasable and .-2ccnied Liabs - hic (Dec) 26.721 46]17 -3.962 0.000 0.000 -3 650 -1 265 2 979 32 630 30.001 -IS 541 Income Tales -accrued - hierease (Decrease) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0 000 0.000 0.000 0 000 Other assets and Liabilities -Net Change -2561 -1506 2 Sl i -155.282 30.563 0 00 0.00 (L00 0.00 0.00 0.00 Operating Acficities -Net Cash Flow 333-817 310]74 349.400 451-613 457339 275.992 38.603 21~.68~ 198.550 28.733 27.570 Polaris Capital Management Financial Model 1\IETH.VNEl CORF TICKER. NLl_ ($ 1~'IILLIONS. EICEPT PER SHARE) SIi': 2,360 GICS. IISD IISD IISD IIS D IISD Historical Dak~ Projection Dec03 Dec0a Dec05 Dec 06 Dec o- D ecOS Dec09 Dec10 Dec11 Decl' Dec I3 Operafing :1cti~°ifies -Net Cash Flow Escl R~C CI 307.549 346.957 312.511 639.896 456.476 28x.096 395.367 238.028 223.464 303.961 265.874 INVESTING ~CTI~TTIES Lraestruents - Lrcrease 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Sale oY hrveshnenta 0-000 0-000 0-000 0-000 0.000 0 0 0 0 0 0 Short-Term Lraestmerrts - Charge 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Capital Expendihues 224 67.9 145.121 113.796 54.50 217.064 40.000 40.000 40 000 10 200 10 200 10 200 Capital Expendihues - Grawdr 279.000 279.000 63.000 0.000 0.000 0.000 Sale oY Property. Plank and Equipment 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Acquisitions 68-555 0-000 0-000 0-000 0000 0 0 0 0 0 0 Investing Activities -Other -31 828 -4 611 -0 146 31 437 -2.077 0 0 0 0 0 0 Investing ~cti~~ities -Net Cash Flow -322062 -149.732 -113942 -12033 -252141 -319.000 -319.000 -103.000 -SU.200 -SU.200 -SU.200 FIN.VNCING ACTI~TTIES Sale of Common and Preferred Stock IZ731 41343 10?22 7.724 3.793 0 0 0 0 0 0 Purchase of Common and Preferred Stock 31931 79375 136-039 ll1 869 139 300 0 0 0 0 0 0 Cash Dividends 54.134 30.930 46.131 53.9;1 10 370 0.000 0 0 0 0 0 Long_Tenn Debt -Issuance 43.047 13.735 142.523 0.000 121 595 196 0 0 0 0 Long_Tenn Debt- Reduction 3ZCi68 169_^_?9 248363 14.414 13.^_16 23933 L _232 36.077 40.137 240.619 242(119 Current Debt -Changes 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 Furarcing Activities -Other -11.231 -3.695 -16.981 -3.431 17.305 0 0 0 0 0 0 Financing Actin°ities -Net Cash Flow -1?3 ?37 ?33 091 ?34 8^_3 = 60.93? -105.1°_3 -23.983 180.718 -36.077 -40.187 -240.619 -240.619 Exchange Rate Effect 0-000 0000 0000 0.000 0.000 0 0 0 0 0 0 Cash and Equivalents -Change -123.482 -72.053 -49.365 201.649 123.070 -66.990 246.321 75.607 lOR.163 -6.1186 -16.249 DIKECT OPERATING ACTI~TTIES Lrterest Paid -Net 31.700 23962 3356 32(123 35.537 hrconre T21es Paid 31.130 41.954 63.302 113?30 133 234 BAL_~NCE SHEET ASSETS Cash &- Equivalents ^_37 954 ? 10.433 153332 355.4„ 433.971 421._931 6-63303 743910 312 073 R41 936 329 737 Net Receivables 2~0 941 2 )3.811 2 )5.825 ~<t 767 402 453 40(,.912 402.611 410.02(: 435.331 452.597 433.347 Inventories 126]69 142.457 139.774 345.019 312.620 313-530 326-420 339369 371-103 403-572 392]34 Prepaid Expenses 14 317 16.;14 13.523 24.073 20.9„ 30.922 30.922 30.922 30.92, ,0 9„ ?0 9„ Treasurti- Stock 0.000 0.000 0 000 0.000 0.000 0000 0000 0.000 0.000 0.000 0.000 Cun~ent Assets-Oklrer Excl Preparel Exp 0-000 0.000 0.000 0.000 0.000 0.000 0-000 0-000 0-000 0-000 0-000 Total(_'urxent.-lssets CSO.i?1 6C3?63 607.101 ))1.231 122].971 1162.-431 1413?~4 1y14?26 1679.)33 1723.076 163200 GrossPlart,Propern Equipment 2910.263 ^_704.126 ^_30(1379 231QCi85 3131.741 3410.741 37(19.741 337^_741 3922941 3973.141 4023.341 Aeaunulated Depreciation 1182617 133-4.123 1414.035 1496564 1537.280 1692711 1312174 1.9-49.439 2072703 2309967 2216.991 Invest Grants and Other Deductions (_) 0-000 0000 0000 0.000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 Net Plant,Properh- ~ Equipment 132QC,46 1369 603 1392.844 1354 121 1544.4(,1 1751 026 1950 567 1923302 1343_233 1763.174 1306.350 Inveehuenks at Equi25- 0-000 0000 0000 0.000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 Other Inaeshnents 0 000 0.000 0.000 0.000 0.000 0.000 0.000 0 000 0 000 0 000 0 000 Intangibles 67.071 17.744 42859 42 383 34.781 27]17 20]33 13]09 6.631 -0339 -730,3 Deferred Charges 18-637 16964 lfi_604 10.936 23.356 23-356 23-356 23-356 23-356 23-356 23-356 Other Assets 21.132 21.631 21.2)1 47.2)) 46.223 46.223 46.223 46.223 46.]23 46.223 4(1223 TOTAI. ASSETS 2032 460 3129258 2092.102 "'446.021 ^_374293 3011.297 3x59.633 3521.317 3599.935 3555.990 3551.356 Total NA 1870.947 1629.169 18;2.583 2105.052 237, 262 2532.931 2961.738 3022.291 2867.8;7 2793.901 3045.727 Polaris Capital Management Financial D~Iodel D1ETH 1NEl CORD TIChER ~Ll_ ($ n~LLIONS, EICEPT PER SH~FZE) SIi': 2,360 UICS. IISD IISD IISD II SD IISD Historical Date Projection Dec03 DecOa Dec05 D ec06 Dec o- D ec08 Dec09 DecIO Dec I1 D ecl' Dec I3 Chg. NA -0.129 0.131 0.142 0.128 0.066 0.169 0.020 -0.051 -UA26 0.090 EI_~BIEITIES Long Term Debt Due L, One L ear 21363 253.595 22 677 22 300 23.983 li_282 36.077 40.137 240_Ci19 24QCi19 0.000 Notes Pay able 0-000 0-000 0-000 0-000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 ~ccountsYatable 173.-476 X31.233 ~~5.330 309.337 466733 466.033 461.31) 4,3.33) 491.469 521.470 503.60 Tales Parable 0.000 0.000 0.000 0.000 0 000 0.000 0 000 0 000 0 000 0 000 0 000 :~ccruedElpenses 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 ?,ccoru,ts Payable Creditors -Other 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P,aposedDividenda 0-000 0-000 0-000 0-000 0-000 0-000 0-000 0-000 0-000 0-000 0-000 Other Cm~rent Liabilities 0 000 0 000 0 000 0 000 0.000 0 000 0.000 0.000 0.000 0.000 0.000 Total Current Liabilities 211.513 500.039 249.519 340.973 499.030 478365 497.396 499.026 732.083 762089 505.629 Long Tenn Debt 756-425 351.5)1 509.163 492.931 0,07.592 592.310 752.233 7L'-046 471-427 230-308 230-308 DefenedT2les 261300 266.035 330?95 352234 339.121 339.121 339.121 339.121 339.121 339.121 339.121 h,veshuent Tas Credit 0-000 0-000 0-000 0-000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 I~Imority L,terest 0.000 0.000 0.000 0.000 41320 41.320 41320 41320 41320 41320 41320 Reserves - IInt<21ed 0.000 0 000 0 000 0 000 0.000 0 000 0 000 0 000 0 000 0 000 0.000 OH,erLiabilities 69399 60?94 Si_842 49_^_33 42831 49.331 49.331 49.331 49.331 49.331 49.331 TOT ~E LI_BILITIES 1298.(,38 1178.059 1144.820 1235.5211 1536.894 15(10.948 1680.4111 1641.344 1633.787 1423.169 1166.709 EQiIITI" Preferred Stock -Redeemable 0-000 0-000 0-000 0-000 0.000 0-000 0-000 0-000 0-000 0.000 0.000 Preferre 1 Stock - Nonredeemable 0.000 0.000 0.000 0.000 0.000 0.000 0-000 0-000 0-000 0.000 0.000 Total Preferred Stock 0.000 0.000 0.000 0.000 0.000 0000 0000 0000 0000 0.000 0000 Conuu m Stock 4.92416 >24333 SOIC:97 x75.231 452331 452.331 452331 452 331 452.331 452.331 452.331 Share Capital -Other 0 000 0 000 0 000 0 000 0.000 0 000 0 000 0 000 0 000 0 000 0.000 Pa,tieipation Rights Certificates 0.000 0.000 0.000 0.000 0.000 0 000 0 000 0 000 0.000 0.000 0.000 Less: Treasury Stook 0.000 0.000 0.000 0.000 2000 0.000 0 000 0 000 0.000 0.000 0000 Capital Surplus 0-000 3-461 4-133 10357 16-046 16-046 16-046 16-046 16-046 16-046 16-046 Revaluation Reserve 0.000 0.000 0.000 0.000 0 000 0.000 0.000 0.000 0.000 0.000 0 000 Ret<smedEan,mgs 284.406 423.405 441.452 724.917 862021 1033.653 1309.565 1417329 1510.529 1634.226 1.943.076 IInappropriated Net Profit 0.000 0.000 0.000 0.000 0-000 0-000 0-000 0-000 0-000 0-000 0-000 Equip- Reserves -Other 0.000 0.000 0.000 0.000 0.000 0-000 0-000 0-000 0-000 0-000 0.000 Cumulative Translation ~cjnstrnent 0 000 0 000 0 000 0 000 0.000 0 000 0 000 0 000 0 000 0 000 0.000 CrnnmonEquin~ 733-323 951-199 942232 1210-505 13373)3 1503-035 1777-942 1335J06 1973-906 2153-603 2411-453 TOT_AI, EQLIITI' 733 323 951.199 947.232 1'_ 10.505 1337393 li02.035 1777.942 1335 706 1973 906 '_ 152 603 '_411 453 TOTAL LIABILITIES ~ EQIIITI' 2082.x60 2129.258 2092.102 2446.025 2874.293 3002.982 3458.343 3527.050 3612.693 3575.772 3578.161 COIDID-ION SFLARES OIITST_-INDING 120-003 120-022 113-645 105-301 93310 93310 93310 98310 98310 98310 98310 Polaris Capital Mangement Financial Model Sales Model Assumptions 125 33% 150 36 90% Average real ized price is a blended selling price of Iiled and ~°ariable priced c ontracts and selling price o f purchased volumes. Variable priced contracts are still sold ~-10% discou nt to Non-discounted posted price Selling price of purchased ~Tolumes = Average reali zed price.Pur chased sales i s a wash in the bottomline over a long period Commission sales contribute negligible to top line sales Production in 000 tons 2005 200(, 2007 2008 2009 2010 2011 2012 2013 Sales/production 96% 111 % 86% assumed that production=sales from 2009 Trinidad+Chile 4..553 1.921 1,086 2.769 3,421 3,805 4189 4.573 5,341 Kitimat+N.Zealand 788 389 483 600 900 900 900 900 900 Egypt 605 718 718 718 Purchased 1,171 1101 1453 2,509 1,557 1,173 1.200 1,200 1.200 Connnision sales 537 584 590 622 622 622 622 622 622 Total 7,052 6.995 6.612 6,500 6,500 7,105 7,629 8,013 8,781 Re~-enue( 000$) L658120 2108250 2266,521 2,806.566 2,368,300 1,952.507 1,854,601 1.967.811 1.908,032 Growth 23.8% -15.6% -17.6% -5.0% 6.1% -3.0% Realized Price $/t 255 329 376 477 403 332 293 295 256 Non discounted Posted price/t 301 396 451 595 500 400 350 350 300 Discount -15% -17% -17°/u -20% -19% -17% -16% -16% -15% Total cogs+sga 1,206,425 1,308,175 1.614,179 2,406,868 1,795,308 1,628,970 1,558,655 1,573,931 1,531,856 cogs+sga for purchased methanol 318,037 392:396 589,773 1.463.273 700,857 422,446 378,000 378,000 324,000 cogs+sga for produced methanol 888.388 915.779 1.024.406 943.595 1.094.451 1.206.525 1.180.655 1195.931 1,202856 Trinidad+Chile+Egypt gas cost 335,784 479.772 589,801 531.142 548.997 562.191 544.648 587,272 572.551 New Zealand gas cost 170.208 84,081 60,798 75,600 113.400 113.400 113,400 113.400 113.400 Non gas cost 382.397 351,926 373.807 336.853 432.054 530934 522,607 495.259 521.906 Non-gas cost/t 71.6 66.3 81.8 100.0 100.0 100.0 90.0 80.0 75.0 Growth 0% 0% 0% 0% 0% 0% Argentina tal 26 43 Gross Profit 451,695 800.049 652,299 399,699 572.992 323,536 295.946 393,880 376.176 Gross Profit Margin 27.2% 37.9% 28.8% 14.2% 24.2% 16.6% 16.0% 20.0% 19.7% Depreciation & Amortization 88.000 106.828 112.428 99,018 112,435 112.435 123,240 123,240 123.240 Operating Profit 363.695 693221 539,871 300.681 460.557 211.101 172.706 270.639 252.935 Polaris Capital Dlanarement Financial Dlodel Production Dlodel OOO tonnes 1995 1996 1997 1998 1999 2000 2001 2002 2003 20U~ 2UU5 2006 2007 2008 2009 2010 2011 2012 2013 Total R'orld Fnxhtctiou '3,L1 '4, 18 ?~91; '_ii,l ~4 22100 '_9,430 311.1-1 30,95 32,~i94 33,49? 3j?81! 3',393 Total blzthauzs pnxhrction 4106 4,4> 5 ~~92 4690 3,343 610' ,3C1 i l91 a (9S 5,42? S,;~S 5,511 x119 Capacih~ i,40U 3.400 6.190 5 SS3 6,a'_4 (.130 3.91i ig30 5A4'_ 5,92a 6.293 6?93 6?93 6?93 ~ 6.293 ~ 6198 ~ 6 S98 6 S9S 6 S98 Capacinr utilization %-!°o S3°=o S^°a SO°o S3°o 95°0 91°0 96°-0 930,0 9~0.o S5°o SS°-,o 6~°-,0 "'loo a'0-,o _" o Dlethanol equi~~alent capacih utiliza tion 86 % 91 % 83 % AO % 83 % 9A % 91 % 96 % 93 % 92 % 85 % 88 bfarlczt shale (production) 1?0-a 1S°o 20°a 1S°-o 20°0 20°0 15°-a 19°o L°a 16°-0 li°o L°-o Satz; oT b4zthauzti production 3839 a.'SO 3,049 4,4?9 .,,,5 5,51 3,390 3(S( 49„ 5.''9S 3,3x1 6,31E Sales oT blzthanel purchased Prod. 1.35] 1.~~' 1,54 1,32 1?~~ S14 1?50 S09 1.392 1,960 1.1'4 1,101 Couuttissiou ;alas la'_ '20 '>i 24 169 - - iS4 Total Sales of Dlethanes 5,321 6,137 6,903 6,011 6,593 6,771 7,390 7,220 6,579 7,27 7,052 6,995 Fnxhrctiou lass salts 6- -1'3 a3 211 3 192 -39 > -?3> 1_'9 1' 201 Plant data Capacity° (2006) Chile 1S41 lli2 136 1920 '304 2CSS 346 '1tikI 925 Sal Si; '66 Ci( 684 S?3 S'S S9i `5 SO) S44 '12 C'hilzII lOlU 14 869 1,Oda 993 L02~ Sal 99- )83 931 893 S30 ChiIzIII 1065 (30 1,01- 1164 1(~all 9a( 9~' 919 9?0 ChilzIV 8~0 3?3 6~a Cnyaern'ntili_niinu 33J// 9L% -/~'>l S'difi SS% "", ,. y"~, 93'<. 9S:>l 90/ y0/ _ys; S;i~ JS~ 3!1! d0% .+(1/. 60 "0~ 9Qo Trinidad 1843 ?OSS 1SS~ 1SS~ 1SS~ 1SS~ 1SSi Titan 850 ;-- -40 '1~ 8(4 S61 910 833 533 533 533 S33 .~111as 1073 A?1 S93 1,03- 9S2 1145 103? 1115? 105? 1113' 103? Cnj>neih~ urili=rstinrr 1933 6S'?, h0'?6 S'J'">:: 100% yh~ 10-/, vS% %:4'r 98'% 9S'; 9S% 5763 Nerc Zealand Rarhua aallz~~ 530 3~3 49 310 43> 336 ~'> 406 46' 149 498 343 404 43 48'.6 0 0 11 0 0 1vlohuuu DII+DIII+UIV 1900 S~2 129' 1.395 1,33 1,~2' 1,SS~ 1,'2- 1.81-! S19 X90 900 900 900 900 900 C~g>acrh~rrrili_ntiorr 5 % "6% "S% "d%,~ S:5';> y9`a: SS"~£ 9-!/ d0% JS'; 6?5d ' % -9%;~ 9?/. 9~!'% 25'6 9.536 9~'o y5% Egypt 7i6 60J.S '15. 'IS" ?IS] SOd 9.5% 9?% J.?% North America I~itiruat 500 x119 436 4S0 40' 465 ?43 '_49 4?5 449 4SC 3'( Othzr 1.351 1.30( 111'> '9> >03 44'_ 196 Total p%ihrctiou 400( 4,433 3,09? 4(90 3,;43 6111- 3,.61 3,691 4(98 3,4_- 3335 3.311 x,119 0 Total ctpacit} i,a00 ~,a00 (,1911 >,SSi 6,424 6.li0 >.9L X930 x,042 ~J'4 6,'_93 6'93 6,'93 6?93 Dh.-l 9- 114 11- 10' 11_ 110 113 111 96 ?9 91 10- 1 L Dfi.~iou '4 3( _. _~ '1 1S 31 30 20 13 1' 19 _- Polaris Capital Management Financial Model Pricing Model A~-erage Non- Time Realized discounted period Discount price posted price 1804 -10.8% 223 2~0 2g04 -10.7% 22~ 252 3g04 -10.7% 245 274 4g04 -13.1% 251 289 1q0~ -1J.J% 262 310 2g05 -16.9% 2~6 308 3805 -14.9% 240 282 4q0~ -1~.0% 2~6 301 1g06 -1~.~% 283 33~ 2806 -17.9% 279 340 3g06 -12.9% 30~ 350 4g06 -17.6% 460 ~~8 1807 -17.3% 444 537 2g07 -13.3% 286 330 3807 -109% 270 303 4807 -19.3% ~ 14 637 1808 -22.x% 545 703 2g08 -1~.7% 412 489 Regression co-efficients Intercept -0.072446 Slope -0.000243 Price link beri~-een oil and methanol No. 2 disel 40.8 nnnbtu/t Methanol 18.9 mmbtu/t It 7.46 bbl 1 bbl 42 gallons 1 MT 332.6 gallons Chide price in $/bbl No. 2 disel price in $/bbl No. 2 disel price in cents/gallon energy- equi~-alent methanol price usd/t (from co. 1~-ebsite) usd/bbl 78 86.96 207.0 300.1 Polaris Capital management Financial Model Discount Cash Flow Anahsis MFTHANF\ CORP BBT? cs Current Price _6-85 3-I"ear Beta 5-rear Bets 10-Year Beta Contin', Bns- Beta nISCI World nISCI World L.iSCI ~Voiid niSCI E.~FE I~f SI I E~FE L.iSCI E? FE L)el t Ec mt y3Yr Total Ec nifS-SYr Total Ec ni tylOYr Totzil Cont Finn Total 10 yrs ~ j'1's 3 yes 10 yes ~ cis 3 S-rs ConnhV Real Yield 0 01 ~ 7 Nonunal Cost o.Y 9sset Class 0.0?13 _~ssmued ffiflahon Rate 0.0_ 10 Real Cost of Asset Class Qti533 0.0600 206ti0 0.0600 0.O6ti0 Tati Rate 03300 Taff Saeiii~s 20'_15 3aer-rat cosr or riser etas o-o~ss o.owo 0-0600 0.0600 0 0600 Risk9d~mhuent~Beta 1.000 0918 0.981 O.ti11 1.000 1.03_ O.d-J_ 1._91 LOS_ 0.901 1.07_ LOS_ FusL Add Cost oY As. et Class 0 0'_9 0 0; 0.0:9 0 03? 0 060 BooLl~tarliet ~"aloe oY asset Class 6,1.5?; '_410 .??1 ]610 ,?'1 '_610 ,??1 ]610 .?-1 ~~~eight 0.1931 0.8069 1.0000 0 8069 L000 0.8069 1.000 28069 1 000 Finn W.~CC' 0.0056 QO-W-1 0.000 0 047 0 030 0.0_9 ~ 0.033 0 0481 0.040 PF oY Fnm Cash Flo«~s 9601 13_8 6310 1]50 EgmtV I~farfiet Capitalization X610 _610 ]610 ?610 NF\~ 1961 1(83 36'0 1011 Buc Limit '~1-.01 x;11.'_3 '61.13 $13.13 Sell Limit '~'3 O6 $6?.91 $106 19 466.19 PCI~I Disc Rate 0.0908 20916 0.0?_6 0.095' Pt" of CF nsing PCnI discount rate _799 ~ 180 3010 ~ 146 NFF nsing PCnf discount rate -310 -160 100 -194 Buq Limit $_3.50 $_]__8 $3106 ?1.93 Sell Limit $3_ 0~ $30.0 i $-1-1 61 $_9 51 FDShs 97 86 CashFlo~~ Yiajeehons Grog th I ear CFOYS 1~dC=IYES Sust FCF Y~- of SFCF 1 28.096 319.000 -34.904 -31.854 NA 2 395.367 319.000 76-367 63-604 OJ68 238.028 103.000 131028 10? 635 0.283 ~ 223.46A 50.200 173.264 120.191 065 ~ 303.961 SU.200 253.70,1 160.649 0.0'- 6 265.87; 50.200 '- 15.674 1'--~ 607 002 7 X19 987 11~ 993 0.02 8 3'_4387 107.97= 0.02 9 228-875 100-511 0.02 10 233.452 93.563 0.02 11 238.122 82096 0.02 12 24'884 8L075 0.02 13 242742 75.471 0.02 14 252 696 70?54 0.02 15 257.750 (5397 0.02 16 2(2.905 (0.877 0.02 17 268-IC,4 56669 0.02 18 273 S27 52.751 0.02 19 278.))7 49.105 0.02 20 284.577 45.710 0.02 21 290169 42.551 0.0, X96.074 39 609 0.02 23 301 996 36.871 0.02 34 308-036 3432? 0.02 25 314-196 3 L950 0.02 26 .20.480 29.741 0.02 27 326-890 27-685 0.02 28 3;3.428 25.772 0.0? ?9 340.096 23.990 0.02 30 346:898 22.332 0.0'- 31 353.836 20 788 0.02 32 ;(0.913 19351 0.02 33 368-131 18.013 0.02 34 375.494 16-768 0.02 __ 383.004 15.609 0.02 36 390.664 14.530 0.02 37 398.477 13.526 0.02 38 406.a-46 12.591 0.02 39 414.575 11.720 0.02 40 4'_2-80,7 10.910 0.02 41 431-324 10-156 0.02 42 439 951 9.454 0.02 43 448 750 8.800 0.02 44 452725 8.192 0.02 45 466 S79 Z62C 0.02 46 476 217 7 099 0.0'- 47 485.741 0.608 0.02 48 495.456 6.111 0.02 49 105365 5 7~6 0.02 50 515.47"' 5.330