2nd Annual Global Investment Research Challenge

CFA FRANCE

Inaugural Investment Research Challenge

Regions

2008 Society Participants Asia-Pacific

Hong Kong India Indonesia Singapore

Europe

France Italy Netherlands Spain UK

North America

Atlantic Canada Boston Dallas/Houston Louisville New York Pittsburgh Virginia Page 2

Overview

400+ students from over 80 universities in Asia, Europe, and North America will compete, including students from these schools ranked among the Financial Times top MBA programs:

Babson College Boston College Carroll School of Management Boston University School of Management Carnegie Mellon Tepper School of Business Columbia Business School ESADE (Spain) IE Business School (Spain) Imperial College London’s Tanaka Business School London Business School MIT Sloan School of Management NYU Stern School of Business Rice University Jones School of Management SMU Cox School of Business Texas A&M Mays Business School University of Pittsburgh Katz School of Business University of Texas McCombs School of Business University of Virginia Darden School of Business William and Mary Mason School of Business Page 3

Key Components Perform corporate analysis Be mentored by an industry professional Interview company management Write an equity research report Present to a panel of industry experts Page 4

Inaugural Investment Research Challenge

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Participants

8 Teams Tutor & Mentor

ESSEC

Master Techniques Financières

Université Paris-Dauphine

Master Ingénierie Economique

Université ASSAS

Magistère Banque Finance Bernard Esnault & Sarah Smith Gérard Chapalain & Raphael Dubois Denis Deschamps & Julien Guez

ESC Reims

Master AFI

ESC Lille

Master AFI Stéphane Dubreuille & Richard Houbron Rahma Chekkar & Maxime Lefebvre

Université Panthéon Sorbonne I

IAE Master Finance

Université Lille II

ESA Master Gestion Diana Pop & Nina de Martinis Jean-Gabriel Cousin & Kais Mbarek

CERAM

Master Finance des Marchés Bertrand Groslambert & Christine Verpeaux

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The Company

PRODUITS ET SYSTÈMES POUR INSTALLATIONS ÉLECTRIQUES ET RÉSEAUX DE COMMUNICATION

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2008 Timeline January 22 nd Kick-off meeting - introduction of teams to mentors and announcement of subject company February 20 th Teams submit questions for the company to CFA France [email protected]

March 11 th March 16 March 20 th th Company presentation: Reuters France 6-8 Bd Haussmann at 18:00 Deadline to send additional questions to CFA France for submission to company [email protected]

Conference Call at 18:00 company : answers from the Page 8

2008 Timeline April 1 st April 15 th May 13 th May 22 nd First draft of report submitted to mentors Final reports submitted to CFA France for evaluation by graders 3 finalist teams announced Presentations by finalist teams to a panel of experts Page 9

The Rules Student Teams Teams of 3-5 students per university Students must be enrolled in the current semester at their university CFA Charterholders and students who are or have been employed in a role whose primary duty involves fundamental company analysis are not eligible If a team loses a member, that member can be replaced up until the company presentation on March 11 th Page 10

The Rules Research Process Students must not use material non-public information in their written reports or oral presentations.

The reports must be the original work of the students. Faculty members and mentors may not write any part of the report Direct contact with the company is limited to the company presentation and one follow-up contact: conference call.

Teams may contact the company’s customers, competitors and suppliers. They must confine their conversations to corporate officers who normally interact with investors, such as IR officers, CEO’s or CFO’s. Any other entity must be approved by CFA France.

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The Rules Advisors Teams may use their mentor and Faculty advisors (tutor) as resources, but may not be helped by any other investment industry professionals in conducting their research or writing their reports.

Tutor can spend up to 10 hours advising the teams Mentors can spend up to 6 hours advising the teams, including phone calls, face-to-face meetings, and reviewing the reports Mentors may not contact the company, or any of its competitors, affiliates or suppliers unless supervising a student call. Page 12

The Rules Research Report Teams must use the report template provided by CFA France The body of the report may be a maximum of 8-10 pages Any additional charts and/or graphs should be included in the appendix. There is no limit to the length of the appendix.

The report, written in English, must be the original work of the students, and may not be copied from another source.

Final report must be submitted to CFA France in electronic and printed form (5 copies) on or before April 15 th .

Reports will be submitted under an anonymous team name, Team A, Team B, …to Team H.

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The Rules Grading Written reports will be graded by a team of 4 to 5 investment professionals Grading will consist of a blind process in which the identity of the university is not known to the graders.

The 3 teams with the top scores will be selected as finalists to present in front of the panel.

Graders will provide short comments on the reports to all of the teams. Page 14

The Rules Written Report Scoring Criteria Section Investment Summary Valuation Business Description Other Headings Industry Overview & Competitive Positioning Financial Analysis Investment Risks Maximum Score 20 20 5 5 15 20 15 Total 100 Page 15

The Rules Presentation Finalist teams will make a presentation in front of a panel of investment industry experts selected by CFA France Students will prepare a PowerPoint presentation for the panel, and will have 10 minutes to present with an additional 10 minutes of Q&A Panelists will base their scores on the presentation only The final scores will be based 50% on the score of the written report and 50% on the presentation, in the case of a tie, the team with the highest presentation score will be the IRC winner team The IRC winner team will be announced Page 16

The Rules Criteria Presentation Scoring Criteria Maximum Score I. Materials II. Argument (did they use data effectively to support their recommendations) III. Poise (were they confident in their recommendation, were they convincing) IV. Questions (were they able to answer questions) V. Use of Resources (team involvement in the presentation, q&a) Total 20 25 20 25 10 100 Page 17

2008 CFA France IRC Award

€4000

will be awarded

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2008 CFA France IRC Award

€1000

will be awarded to the finalist team who gets the highest score on the report

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2008 CFA France IRC Award

€1000

will be awarded to the finalist team who gets the highest score on the presentation

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2008 CFA France IRC Award

€2000

will be awarded to the finalist team who gets the overall highest score “The winner team”

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2008 CFA France IRC Award

Example « Team Z wins the challenge »

Team Team X Team Y Team Z Report 90

70 85

Presentation

65

85

80

Overall Score

155 155

165 Prize

€1000 €1000 €2000

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Questions?

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