Institutional Presentation July 2014

Transcription

1 Institutional Presentation July 2014

2 Need to know Performance Bloomberg s ANR points to consistent outperformance. Check and please check against large brokers Coverage 450 large caps, 83% of the Stoxx600, all really live. Check and please check large brokers real coverage Pricing Fixed, starts at 30,000/year/user, including services. Compare and please check your commission bills Effective To the point, short, interactive web based research. Compare Independent AlphaValue has NO conflict of interest WHATSOEVER. This explains its performances. Transparency All research, data, tools, software, methodologies are proprietary and can be backtracked and opposed. Please check against large brokers Flexible More services through partner brokers, ad hoc software development, ad hoc research procedures etc Comprehensive Full integrated governance tools, full exhaustive valuation tools, unique pension risk tools Compliant MIF2, FCA CP13/17 and FCA DP14/3

3 OVERVIEW AlphaValue is Europe s leading provider of pan-european independent equity research. AlphaValue provides equity research based upon strict and homogeneous procedures, including governance related matters. AlphaValue believes in hard, reliable understanding of business models and relevant data. It believes in cross sector analysis, reactivity, and the freedom of opinion afforded by investors pay a fixed price operating model. AlphaValue simply does not trade. AlphaValue has developed a proprietary research procedure imposed to all its c.30 analysts. It is based on a consistent and traceable process. The breadth of coverage about 450 mostly Stoxx600 European companies - across 130 sectors and 17 countries, allows AlphaValue to formulate a coherent view on markets, sectors, market thematics, stocks and people. AlphaValue's research is accessible to Institutional Clients on a subscription basis through a website aimed at fast analytics as well as through Bloomberg, Factset etc. In addition, AlphaValue has set up a network of exclusive distribution partners able to provide advice services. Chief Executive Officer Pierre-Yves GAUTHIER Oct AlphaValue Co-founder & Head of the Management Board June 2004-Oct. 2007: Oddo Securities Head of Strategy - Management Board 1997-June 2004: Crédit Lyonnais Securities Head of pan-european research : Head of Credit Lyonnais Securities : Head of Equity Research- CLSE- Paris : Goldman Sachs, London Head of French Equity Research : Co-Founder of Paraction Independent Equity Research Code BLOOMBERG : <ALPV>

4 MOVING LANDSCAPE AlphaValue s approach fully reflects changes in the regulatory environment, from MiFID I to II and ongoing regulatory tightening (FCA Fixed price research paid through the fund manager P&L or CSAs has been AlphaValue business model from the start. It naturally protects client money from all possible conflicts of interest and meets a lasting shift in market structure. Best Execution Unbundling MIFID CSA AlphaValue is designed to split at will the written research component from the service content. Both can be paid separately. Service is meant to cover access to the analyst as well as research sales services through partner brokers. The combination of a uniquely broad European coverage and very reasonable fixed terms provides the best value proposition to a stream of winning ideas (please check on Bloomberg ANR) AlphaValue meets current and future regulation protecting client money without cutting on research, associated services and offers uniquely powerful idea generation tools

5 ABOUT THE COMPANY AlphaValue provides research on c European stocks (extract live xls on website please), amongst the biggest by capitalization. Coverage does not stop unless a stock no longer trades. From its inception, AlphaValue has provided European equity research with no preference for a given country. What makes AlphaValue different from other Independent Research Providers 1/ Its demanding production process 2/ Its high quality thanks to unique consistency 3/ Its means, the largest such venture in Europe Such a depth of analysis over close to 500 large European market caps offers a unique point of view over each company through consistent and meaningful comparisons. AlphaValue only relies on its own analysts, only relies on its software and only relies on its own figures AlphaValue is fully Independent Independence through business model : no execution, transaction neutral Independence of recommendations, no Neutral/Hold Independence through ownership : more than 50% owned by its founders and individual shareholders

6 FEATURES Coverage c. 450 stocks screened in 17 European countries A straight, to the point, structured written content 31 traditional sectors screened 130 business sub-sectors indexed Each Target Price reviewed on a daily basis Infinite variety of stock selection Methods 100% of data downloadable to Excel France 92 United Kingdom 87 Germany 59 Switzerland 36 Spain 32 Italy 26 Sweden 25 Netherlands 26 Finland 16 Belgium 13 Denmark 12 Austria 10 Portugal 8 Norway 8 Ireland 6 Luxembourg 5 Greece 4 Russia 1 By Market Cap More than 30bn 55 From 10 to 30bn 103 From 5 to 10bn 89 From 1 to 5bn 180 Under 1bn 36 2 page PDF summary reports at will Sectors Financials Banks Insurance Other Financials Property Growth Computer Services Hardware Media Semi Conductors Software Telecoms Consumer Cyclicals Autos Consumer Durables Hotel, Catering & Leisure Non-Food Retail Semi Cyclicals Aerospace-Defence Building & Construction Building Prod. & Materials Capital Goods Support Services Transport Deep Cyclicals Chemicals Metals & Mining Oils Paper & Packaging Defensives Concessions Food & Beverages Food Retail Health Households Pharma Utilities

7 RESEARCH IN DETAIL Each company is scanned in depth, through a structured process In a nutshell A page which brings together the key data to support the recommendation stance Businesses & Trends The challenge is to describe businesses and their trends in a limited number of words and only focus on those issues that impact cash flow generation in a material way. It is a demanding exercise for the analyst as the right balance is hard to find between proper descriptions in terms that are understandable on the one hand and, effective, to the point, comments about trends on the other. Money Making The purpose of this section is to identify key factors to future profit generation. Frequently, this hinges on divisional contributions. This analysis is usually more effective by looking at swings of divisional earnings in currency terms rather than in margin terms. This is why the first table is defaulted to this analytical dimension. Debt These tables aim at providing more detailed information on debt financing. Useful debt information is only available for non financial stocks with a breakdown by maturity and profile. This helps provide liquidity measures. For Banks and Insurances, the link is with ad hoc Risks measures : Solvency and gearing for Insurers; Tier 1 and liquidity for banks. Valuation Peers DCF NAV/SOTP Valuation processes have been organized around transparency and consistency as primary objectives. Stocks belong to different categories that recognise their main operating features : Banks, Insurers and Non Financials. Within those three universes, the valuation techniques are the same and in relation to the financial data available. The weighting given to individual valuation techniques is managed centrally and may be changed from time to time. As a rule, all stocks of a similar profile are valued using equivalent weighting of the various valuation techniques. This is for obvious consistency reasons. Financials Find all of the company s financial statements via over 250 quantitative results. With forecasts for the next three years. All of the figures published may contain notes and comments from the analyst. Pension Risks Pension liabilities are an immense subject, with indeed arid accounting issues made worse by arid terms. For these reasons, they are understated. This is a mistake, as pension liabilities may account for more than 10% of shareholders' funds, sometimes wipe out the equity base altogether, are inescapable and, sadly, here to stay. AlphaValue offers a home-grown model to help investors find their way in a ridiculously complex field in accounting terms. Governance & Management This section summarizes information about management and executive directors, and find out about the compensation paid to each member and their level of independence. By-laws are evaluated according to the respect of minority shareholders interests. Worth Knowing Equity research does not limit its scope to hard facts. There are intuitions, links that can be made between situations, corporates or men, all sorts of information which when correctly assembled may generate useful additional understanding. This is the point of this section. It may be empty. Graphics Tra-cea-bi-li-ty. For the first time users can see the analyst s past recommendations and target prices in a snapshot, providing a new kind of transparency. They can also use traditional technical tool (Momentum, Macd, Bollinger...). A pair trade module is also available to compare stocks and backtesting ratios.

8 ANALYSTS BY SECTOR PARIS - FRANKFURT Pierre-Yves GAUTHIER Head of Research Alexandre ANDLAUER INTEGRATED OILS Christophe NIJDAM FRENCH & SCANDI. BANKS Jean-Michel SALVADOR TELECOMS Anna ZYNIEWICZ FOOD Bassem NEIFER INSURANCE Myriam COHEN UTILITIES Isabelle COMBEMALE BEVERAGES Alda KULE DALE PROPERTY Fabrice FARIGOULE PHARMA, CHEMICALS David GRINSZTAJN UK & LATIN BANKS Dieter HEIN FINANCIALS Armelle MOULIN HEALTH, PHARMA Marzio FOA OIL SERVICES & REFINING Lionel PELLICER CAPITAL GOODS Thomas PICHERIT AEROSPACE, GAMING Martin SCHNEE CHEMICALS, HOUSEHOLDS Heinz STEFFEN CAPITAL GOODS, TELECOMS Kamla SINGH PHARMA, HEALTH Hans-Peter WODNIOK AUTOS, STEEL Varun SIKKA PAPER, METALS & MINING Bérénice LACROIX HOTELS CATERING, & LEISURE Virginie BLIN CONS. DURABLES Véronique CABIOC H MEDIA Juan Camilo RODRIGUEZ UTILITIES Charles BORDES HARDWARE, SEMI CONDUCTORS Hélène COUMES TRANSPORT, SOFTWARE Gaëtan DUPONT BUILDING & CONSTRUCTION

9 BENEFITS ALPHA CAPTURE COMPREHENSIVE ANALYSIS STRICT VALUATIONS TIME SAVING Systematic Alpha Capture with a Target Price Updated Daily Equity Research based on Genuine Fundamental Analysis Single valuation process for robust decision-making Extract Stocks Lists with our intuitive data crunching tools Acountable Research Process We hold the view that an analyst s job is to start with careful and challenging reading of all material released by a given corporate, fill up a demanding spreadsheet focused on tracking down cash generation, use strict and transparent valuation processes, and then, and only then, put "on paper" the key words summing up his views. Consistent Macro Inputs Standardised Accounting Grids Uniform Valuation Templates The drive for quality stems from the conviction that consistency across a very large coverage is a powerful tool for quality equity research. Robust Comparisons Real-Time Valuation Traceability Idea Generation Driven

10 BUSINESS MODEL Alphavalue is not interested in its subscribers' actual investment decisions. Its services fall neatly into the global regulatory movement which aims to split execution from advisory services in financial markets. Customers Profiles We meet the need of users of research to get more for their research dollar, thereby addressing their requirements for tighter and clearer research budgets. User can either pay : a fixed amount for accessing a product RESEARCH DISTRIBUTION Equity Fund Manager Hedge Fund Manager Private Bankers Buy Side Analysts a service level via brokerages partners BESPOKE SERVICES

11 RESEARCH DISTRIBUTION Real time delivery to the Buy Side Community Many Portfolio Managers are using research aggregator to easily manage their market intelligence providers. Alphavalue is feeding the major research distribution platform with the complete research flow (PDF) in order to be directly more accessible.

12 BESPOKE SERVICES Insight and services provided by experienced sales teams Strategic agreements help both AlphaValue and each partner strengthen their combined commercial presence in specific geographies. The offering combines the independent and uniquely broad European Equity Research of AlphaValue with the high level of insight and services provided by experienced sales teams. AlphaValue pursues its growth plans and challenges the established business model for Equity Research. Austria, BeNeLux, Germany, Lichtenstein, Poland, Switzerland Spain, Portugal, Andorra United States, Canada Italy United Kingdom Tunisia, Morroco, Egypt, Qatar, Kuwait

13 The Company will make all reasonable efforts to ensure the quality of the information contained in the Website but, subject to compliance with applicable regulations, cannot guarantee the accuracy, relevance, exhaustiveness and updating of this information or uninterrupted access to the Website and its contents. It is the responsibility of the User to verify this information by any other means available. The User alone is responsible for his/her use of the Website. Insofar as permitted by applicable regulations, the Company may not be held liable for any direct or indirect loss suffered as a result of use of the Website by the User and of the information contained therein. May we remind in particular that: as regards financial products, past performance is not a guarantee of future results and investments may fluctuate and the value of investments may go down as well as up; all investors therefore risk not recovering the amount initially invested. ALPHAVALUE 48 Boulevard des Batignolles Paris France Tel: contact@alphavalue.eu