20130620 cologne ld_de_en

1 1 1

Citywire Cologne, 20 – 21 June 2013

2 2 2

Head of the European Equities Team Laurent Ducoin

3 3 3

Europe is at the heart of our foundation

Source: Carmignac Gestion, 31/05/2013

5107

7060

5426

9478

Innovation

Europe

Commodities andGold

Emerging

Privileged access to companies’ key decision makers

Our global approach provides a sound angle to our analysis of European companies

1997 Carmignac

Euro-Patrimoine

1998 Carmignac

Euro-Entrepreneurs

1999 Carmignac

Grande Europe

1989 Carmignac Investissement

Carmignac Patrimoine

Investment theme breakdown at Carmignac Gestion in Euros millions

4 4 4

Our European Fund Range: synergies and complementarity Three way to take advantage of opportunities in Europe

Carmignac Euro-Entrepreneurs

Carmignac Grande Europe

Carmignac Euro-Patrimoine

Each fund has its own criteria

Large and Mid-Cap Fund

Diversified Fund Small and Mid-cap

Fund

5 5 5

Investment Philosophy & Process

6 6 6

The European team: Who are we?

Head of the European team – portfolio manager

Covers industry, services, technologies, media and leisure

Joined Carmignac Gestion in 2011

LAURENT DUCOIN 13 years experience

Portfolio manager Covers consumer goods and telecoms Joined Carmignac Gestion in 2010

Portfolio manager Covers healthcare, utilities,

materials, oil and gas Joined Carmignac Gestion in 2008

SAMIR ESSAFRI 9 years experience

FRANCOIS-JOSEPH FURRY 11 years experience

Analyst Cross-sector Joined Carmignac Gestion in 2012

MARKUS KULESSA 6 years experience

7 7 7

A team within the team

CONTINUOUS INTERACTION

BETWEEN TEAMS

Samir ESSAFRI Fund Manager

Laurent DUCOIN Head of Team Fund Manager

François-Joseph FURRY Fund Manager

Markus KULESSA Cross-sector Analyst

EUROPEAN EXPERTISE

MACRO ECONOMIC EXPERTISE

Edouard CARMIGNAC Chairman Fund Manager

Frédéric LEROUX Global manager Macro economic strategy and derivatives instruments

Laurent CHEBANIER Analyst Country Risk

Julien CHERON Quantitative Analyst

Tim JAKSLAND Analyst Innovation Sector

SPECIFIC EXPERTISE

Simon PICKARD Fund Manager Emerging markets

David FIELD Fund Manager Commodities

Matthew WILLIAMS Analyst Financial Sector

Antoine COLONNA Analyst Consumer Sector

Numerous synergies within the investment team enable us to cover the entire investment universe

8 8 8

Idea generation: All team members are financial analysts

Four of Carmignac Grande Europe’s positions


Erste Bank

AB Inbev

Seadrill

Novo Nordisk

Finance

Consumer staples

Energy

Healthcare

Large caps

Large caps

Large caps

Large caps

9 9 9

Our management principles

A successful investment strategy focuses on both top-down and bottom-up

factors

On-the-ground research is key: 33 meetings/month and 396

meetings/year in average

Being fully exposed to equity markets require strong risk

control & active management to avoid extreme outcomes

and mitigate volatility

Best ideas are often simple: pragmatism is a major source

of outperformance

10 10 10

European Equity Fund Range: Investment process

STOCK-PICKING

Qualitative analysis of sectors and geographic areas

DETERMINING THE CORE MACROECONOMIC SCENARIO

INVESTMENT UNIVERSE

PORTFOLIO

TACTICAL EXPOSURE MANAGEMENT

FILTERED UNIVERSE

ANALYSIS

BOTTOM-UP

ANALYSIS TOP-DOWN

11 11 11

Our investment process: quest for structural growth

Structural Growth Successful strategic

positioning

Quality management

Valuation (Free Cash Flow

Yield)

Portfolio 50-60 stocks

12 12 12

Carmignac Grande Europe Stock Picking and Portfolio Construction

13 13 13

Carmignac Grande Europe: Our investment discipline

The weighting reflects the strength of the fund managers’ convictions

CONCENTRATION 58 positions in the portfolio

WEIGHTING Core portfolio securities

between 2% and 5%

Securities in the satellite portfolio

between 1% and 2%

LIQUIDITY A very liquid fund : 90% of the

portfolio can be liquidated in 2 days

0

5

10

15

20

25

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 >3

1 2

21

15

10

3 5


Nu

mb

er o

f st

ock

s

Weighting in the portfolio (in %)


14 14 14

0%

5%

10%

15%

20%

25%

30%

Evolution of our themes since Laurent Ducoin’s arrival


Oil & Gas

Technology

Cons. Goods

Basic Materials

Healthcare

Cons. Services

Financials

Industrials

15 15 15

The main axis of our stock picking

Companies exposed to Emerging countries

Energy and materials

Innovation

End of Systemic risk in Europe

US Real Estate Market

Consumer Discretionary

Cyclical investment

Seach of Yield

16 16 16

The main axis of our stock picking

Companies exposed to Emerging countries

Energy and materials

Innovation

End of Systemic risk in Europe

US Real Estate Market

Consumer Discretionary

Cyclical investment

Seach of Yield

17 17 17

Carmignac Grande Europe: Thematic Breakdown

Source:

Carmignac Gestion,

31/05/2013

Search of yield 7.2

Cyclical investment 7.9

Emerging markets exposure 16.1

Energy & materials 8.9

End of systemic risk in Europe 18.0

Consumer Discretionary 8.9

US Real Estate Market 4.5

Innovation 20.5

31/05/2013

Global Brands 8.0

18 18 18

How we put this into practise ?

19 19 19

European consumption stocks are well positioned to benefit from the rebalancing of the global economy

*Source: Crédit Suisse and Carmignac Gestion, average over 2010 and 2011 on defensive and discretionary consumption stocks

A third of Europe’s largest capitalisations in the consumer sector

Our global investment strategy is now more than ever focused on segment champions

Breakdown of organic growth between emerging and developed markets for the main consumption stocks in Europe

Organic growth from developed markets

Organic growth from emerging markets

20 20 20

Volvo Trucks, a « best-in class »

Quality exposure to industrial cycle and strong cost cutting story

PRODUCT RANGE

Superior positioning in Trucks and Construction Equipment

Strong product momentum in the Truck division, new engine technologies introduction

THE RIGHT GEOGRAPHIES

Critical size in key Emerging markets (China, Brazil, India)

Powerful play on industrial investment rebound in the US and China

FUNDAMENTALS

Convincing restructring plan focusing on structural improvement of margins and further leveraging the group’s scale effect

Strong management team

Cyclical investments

21 21 21

80

85

90

95

100

105

110

115

120

125

130

Carmignac Grande Europe: 3-year performance

Past performance is not a reliable indicator of future performance. Performance may vary over time.

Source: Morningstar, Carmignac Gestion, 31/05/2013

Base 100: 31/05/2010


A EUR acc +17.06%

Reference indicator*

+25.17%

*Stoxx 600 NR (EUR)

From 01/01/2013, the equity index reference indicators are calculated net dividends reinvested.

3-year volatility

Fund: 9.8%

Reference indicator*: 12.6%

Assets under management at 30 May 2013:

€328.31 Mn

Laurent Ducoin’s arrival

3-year performance

22 22 22

Carmignac Euro-Entrepreneurs Stock Picking and Portfolio Construction

23 23 23

Carmignac Euro-Entrepreneurs: Our investment discipline The weighting reflects the strength of our convictions

CONCENTRATION 62 positions in the portfolio

WEIGHTING Quality companies

between 1% and 4%

Special cases” and “high free cash flows but cyclical”

between 0.5% and 1.5%

LIQUIDITY A very liquid fund : 90% of the

portfolio can be liquidated in 3 days

0

2

4

6

8

10

12

14

16

18

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 >3

3

6

17 18

14

2 2


Nu

mb

er o

f st

ock

s

Weighting in the portfolio (in %)


24 24 24

Small and mid caps: framework

Larger investment universe

Stronger growth profile

Management focused on long term value creation

Opportunities

Less market efficiency (coverage, liquidity)

Marginal innovation potentially has a stronger impact on growth

What we pay specific attention to

Quality

Liquidity

Small and mid caps deserve special consideration

Best segment for pure alpha generation over the long term

25 25 25

Carmignac Euro-Entrepreneurs: Thematic Breakdown

Source: Carmignac Gestion

31/05/2013

Cyclical investment 5,4

Companies exposed to Emerging countries 5,4

Energy 10,5

End of systemic risk in Europe 23,5

Consumer Discretionary 15,6

Innovation 36,2

Global brands 3,5

26 26 26

Rémy Cointreau, undisputed leader on the high-end cognac market

Rémy Cointreau:

Niche player on the high-end spirits market

90% of EBIT on bottles > $20

80% of EBIT is from Cognac, of which 30% in China

Quality management

Strategy focused on upmarket potential

Strong growth prospects in emerging countries

on the most profitable category

1%

52% 38%

10%

Imported spirits 5 million cases

Considerable growth potential…

2.6 million cases

Penetration rate*

2011 vs. 2007

Cognac 7% +3%

Other 5% + 1.5pts

Whisky

Other

Cognac

27 27 27

Europe is a Land of Innovation

6 of the 10 most innovative countries in the World are in Europe

Source: World Intellectual Property Organization, INSEAD, Indian Industrial Confederation, 2012

Top performer

s

Efficient innovation

Inefficient innovation

Glo

bal

inn

ova

tio

n in

dex

GDP per capita (PPP) in USD

Innovation and level of economic development

28 28 28

Europe is a Land of Innovation

6 of the 10 most innovative countries in the World are in Europe

Source: World Intellectual Property Organization, INSEAD, Indian Industrial Confederation, 2012

Top performer

s

Efficient innovation

Inefficient innovation

Glo

bal

inn

ova

tio

n in

dex

GDP per capita (PPP) in USD

Innovation and level of economic development

58

59

59

60

61

61

62

63

65

68

United States

Ireland

Hong Kong

Denmark

Netherlands

United Kingdom

Finland

Singapore

Sweden

Switzerland

Global innovation index (on a scale of 100)

29 29 29

100

110

120

130

140

150

160

170

180Grifols, pharmaceutical and chemical company

Structural growth driven by fundamental trends, in particular improving diagnosis and increasing awareness of plasma-derived protein therapies from doctors

Efficient organic and external growth

Acquisition of Talecris Biotherapeutics allowed cost synergies and to become the third largest global manufacturer of plasma-derived protein therapies and access Canadian and German markets

High barriers to sector entry

Grifols, among the best performers over 1 year on the Spanish stock exchange market

Source : Carmignac Gestion, 31/05/2013, base 100: 31/05/2012

Performance over 1 year

Grifols +60%

30 30 30

90

95

100

105

110

115

120

125

130

135

140

Carmignac Euro-Entrepreneurs: 3-year performance


Source: Morningstar, Carmignac Gestion, 31/05/2013

Base 100: 31/05/2010


A EUR acc +33.5%

Reference indicator*

+30.6%

*Stoxx 200 Small NR (EUR)

From 01/01/2013, the equity index reference indicators are calculated net dividends reinvested.

3-year volatility

Fund: 10.3%

Reference indicator*: 14.4% Laurent Ducoin’s arrival

Assets under management at

31 May 2013:

€220.56 Mn

3-year performance

31 31 31

Conclusion: What makes us different ?

Europe is at the heart of our foundation

Privileged access to companies’ key decision makers

Our global approach provides a sound angle to our analysis of European companies

Our in-house top down analysis provides an edge in determining the most performing investment themes

All team members are financial analysts, thus idea generators

Not restricted to a unique style (ex. ability to add value themes depending on the cycle)

Active hedging policy of specific risks


Carmignac Euro-Patrimoine


32 32 32

Appendix

33 33 33

Our risk management

34 34 34

Management of the Fund’s level of exposure

Decisions to take derivative positions are taken by L. Ducoin, S. Essafri, F. Leroux and J. Cheron

STUDY OF TECHNICAL AND MARKET FACTORS

Identification of periods of risk appetite/aversion Relative valuations and correlations between asset classes Investors’ positions Analysis of markets’ response to macroeconomic and political events

DETERMINING THE LEVEL OF EQUITY EXPOSURE

Min: 60% Max: 100%

INSTRUMENTS USED

Standard, liquid futures contracts on regional and sector indices (DAX or EUROSTOXX)

Tactical use of options

35 35 35

Carmignac Grande Europe: an active management of our exposure

0

20

40

60

80

100

1201

1/1

1

12

/11

01

/12

02

/12

03

/12

04

/12

05

/12

06

/12

07

/12

08

/12

09

/12

10

/12

11

/12

12

/12

01

/13

02

/13

03

/13

04

/13

05

/13

Source : Carmignac Gestion, 31/05/2013

ECB’s recent intervention by the introduction of LTRO have reassured

investors

Increasingly complex European situation and

heavier recessionary pressures

Systemic risk is much lower thanks to the ECB

and Fed

Political uncertainty and slower global growth

point to greater volatility

1

2

3

4

1

2

3

4

36 36 36

90

100

110

120

130

140

150

160

170

Inditex, a unique vertical integration model

Inditex

Leading global player in clothes retailing (Zara, Bershka, Massimo Dutti, etc.)

Flexible, quality business model; a structural winner in the sector

Growing exposure to emerging countries


Source: Bloomberg, 31/05/2013, base 100: 31/12/2012

Inditex +43%

1-Year Performance

37 37 37

This presentation has been conceived for information purposes only and is intended to professional clients. It cannot be used for another purpose than the one it has been conceived for, and cannot be reproduced, distributed or communicated, partly or entirely, to third parties without prior written approval from Carmignac Gestion. This presentation is not an investment advice nor is it contractually binding. Due to their simplification, the information contained in this presentation are inevitably partial. This document may be subject to changes, without prior notice.

Past performance does not guarantee future returns. The value of an investment can rise or fall with market fluctuations, and shareholders may lose, as the case may be, the amount originally invested.

The access to the products and services described in this presentation may be subject to restrictions towards some persons or countries.

The risks and fees relative to the products are described in the KIID (Key Investor Information Document).

The KIID, prospectuses and annual periodic reports of the Funds are available on our website www.carmignac.com and can be obtained on demand from Carmignac Gestion. The KIID must be given to the investor before any investment.

Copyright : The data published in this presentation are the exclusive property of their owners as mentioned on each slide.

Non contractual document, redaction achieved on 17/06/2013

Carmignac Gestion – Société Anonyme au capital de 15 000 000 € - RCS de Paris B 349 501 676

Agrément AMF n° GP 97-08 du 13/03/1997 24 Place Vendôme – 75001 Paris – Tel : +33 1 42 86 53 35

Disclaimer

http://www.carmignac.com/





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