Transcript Slide 1

GLOBAL OPPORTUNITIES FUND
INTERNATIONAL OPPORTUNITIES FUND
GLOBAL OPPORTUNITIES FUND (GPGOX / GPGIX)
INTERNATIONAL OPPORTUNITIES FUND (GPIOX / GPIIX)
Robert Gardiner: Portfolio Manager, CEO & DOR
Blake Walker: Portfolio Manager & CIO
Eric Huefner: President & COO
Mark Siddoway: Head of Client Relations
Grandeur Peak Funds are distributed by ALPS, Inc.
Table of Contents
Firm Background
Research Process
Investments Focus
Sell Discipline
Portfolio Composition
Risk Management
Global Opportunities Portfolio
International Opportunities Portfolio
Case for International Micro Caps
Why Invest With Grandeur Peak
Contact Us
Appendix
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Who We Are
• Investment Firm Focused on Global Equities (long)
• Long-Term Investment Horizon
• Small/Micro Cap Bias
– Faster growth
– “Undiscovered” companies
– Less efficient markets
• Repeatable Investment Process
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Disciplined Global Screening
Rigorous, Bottom Up Due Diligence
Collaborative Analysis
Close Attention to Valuation
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Who We Are
• Founded July 1, 2011 by Former Wasatch Advisors Team
– Robert Gardiner
– Blake Walker
– Eric Huefner
• 100% Employee Owned
– Delaware LLC
• Two Initial Strategies
– Global Opportunities Fund
– International Opportunities Fund
• Two Share Classes
– Investor ($2000 minimum investment)
– Institutional ($100,000 minimum investment)
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Grandeur Peak – What’s In A Name?
Grandeur Peak is a beautiful mountain peak overlooking
the Salt Lake valley which provides stunning vistas of the
valley below and beyond. Grandeur Peak reminds us of
three important things:
– One of the best perspectives comes from a broad, global view;
– Successful investing, like climbing, takes preparation, discipline,
and passion;
– We are hired by our clients in a joint endeavor to ascend the
peak, and we will strive to build a trusted friendship throughout
the climb.
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Grandeur Peak – Core Values
• Passion
– We are thorough and passionate global investors
• Quality
– We are building what we believe to be the highest quality portfolios
• Discipline
– We will be consistent in our approach and process
• Integrity
– We do what we say we will do
• Candid
– We are candid with each other and our clients
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Core Investment Beliefs
• In today’s connected world investors need to
understand the global landscape of each investment.
• Great investments exist in every corner of the world,
and investors need to be looking there to find them.
• The universe of impressive and underfollowed small &
micro cap companies around the globe is extensive and
growing.
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Seasoned Team: Founders
• Robert Gardiner, Portfolio Manager, CEO & DOR
– 28 years of industry experience
– Former Founder and Portfolio Manager of:
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Wasatch Global Opportunities Fund (WAGOX): 11/17/2008 – 6/30/2011
Wasatch Micro Cap Fund (WMICX): 6/19/1995 – 1/31/2007
Wasatch Micro Cap Value Fund (WAMVX): 7/28/2003 – 1/31/2005
Wasatch Small Cap Value Fund (WMCVX): 12/17/1997– 1/31/2002
• Blake Walker, Portfolio Manager & CIO
– 10 years of industry experience
– Former Founder and Portfolio Manager of:
• Wasatch International Opportunities Fund (WAIOX): 1/27/2005 – 6/30/2011
• Wasatch Global Opportunities Fund (WAGOX): 11/17/2008 – 6/30/2011
• Eric Huefner, President, COO & CCO
– 11 years of industry experience
• Former V.P. and Director of Mutual Funds at Wasatch Advisors
– 12 years managing businesses for Campbell’s, Kraft/Nabisco & Sara Lee
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Seasoned Team: Research
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Robert Gardiner, CFA: Analyst, Portfolio
Manager & DOR
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25 years of investing experience at
Wasatch Advisors
10 years of international investing
experience
Highly acclaimed portfolio manager:
profiled in The Wall Street Journal,
Forbes, Barron’s, & New York Times.
Lived in France and speaks French
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From sell side at small cap shop, Sidoti
Previously jr analyst at Wasatch Advisors
Lived in Mexico and France and speaks
Spanish and French
Rob Green, MSF: Quantitative Analyst
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Began as a Wasatch analyst in 2005
Lived in Brazil and speaks Portuguese
Spencer Stewart : Sr. Analyst
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10 years of international investing
experience at Wasatch Advisors
Acclaimed international small cap
portfolio manager
Lived in France and speaks French
Began as a Wasatch analyst in 2003
Previously Goldman private wealth team
Currently lives in Hong Kong & Salt Lake
and speaks Mandarin
Randy Pearce, CFA, MBA: Sr. Analyst
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Blake Walker: Analyst, Portfolio
Manager & CIO
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Amy Sunderland, CFA: Sr. Analyst
Began on the Wasatch Advisors research
team in 2006
Previously at University Venture Fund
Research Team: Global Analysts
• We believe understanding a sector globally is critical to finding
BICs (Best-In-Class Growth Companies). We have an analyst
dedicated to each of the six key global sectors:
– Technology: Robert Gardiner
– Healthcare: Robert Gardiner & Blake Walker
– Consumer: Amy Sunderland
– Financials: Randy Pearce
– Energy & Materials: Blake Walker
– Industrials: Spencer Stewart
– Quantitative Analyst, All Industries: Rob Green
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Research Process: Bottom Up
• Disciplined Screening via DuPont Analysis
– 52 week screening schedule keeps us constantly looking at opportunities
• Rigorous Due Diligence
– Analyzing the company, industry, competitors, and suppliers
– Traveling the world to visit companies and meet senior management
• Collaborative Vetting
– Tapping into the experience and insights of the full team in considering
each investment
• Build Proprietary Models
– Understanding the key drivers and expected returns for each company
• Close Attention to Valuation in Purchase Decision
– Seeking to avoid P/E compression risk
– Valuation being a key factor in position size
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Research Process Flow
Country, Sector, & Proprietary Screens
Initial Review & Global Comparisons
Management Visit/Call
Collaborative BIC Evaluation
Build Earnings Model
Watch Lists
A: BIC, but expensive
B: Worth following
C: Pass
Q/V/M Matrix*
Dashboard
Portfolio
Construction
Continued
Onion Peeling
Initiate
Position
Position
Revisions
*Q/V/M stands for Quality, Value, and Momentum
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Screening Discipline: Multiple Slices
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Country/State Screen - To be on PM desk Wednesday before he goes home
Industry Screen - To be on PMs desk Monday before they go home
Standardized Screens- To be on PM desk Monday morning
Print Stack of Duponts sorted by NCEBITROA level, quarterly and annual
South Africa, Israel
Minnesota, Wisconsin
Taiwan
Michigan, Ohio
South Korea
Southern California
India, Pakistan
Washington, Idaho
Japan
Oregon, Nevada
Poland, Slovenia, Czech Republic, Hungary, Russia, Rest of Eastern Europe
Utah, Colorado
Switzerland, Austria
Alaska, Hawaii, Montana
Italy, Spain
Arizona, New Mexico
Australia, New Zealand
Texas
Hong Kong
Oklahoma, Arkansas
United Kingdom, Ireland, British Virgin Islands, Guernsey, Scotland
Kansas, Missouri
Eastern Canada
Western Canada
Germany, Luxembourg
Illinois,Indiana
Singapore, Malaysia, Indonesia
Northern California
Netherlands, Belgium
Nebraska, North Dakota, South Dakota, Iowa
France, Portugal
Louisiana, Mississippi, Alabama
China, Philippines, Thailand, Rest of Asia
Florida
Greece, Turkey
Georgia, South Carolina
Bermuda, Cayman Islands, Puerto Rico, Bahamas, Netherland Antilles
Kentucky, Tennessee, North Carolina
Sweden, Faroe Islands
Virginia, Wash DC, Maryland
Norway, Iceland
Pennsylvania, West Virginia
Finland, Denmark
New Jersey, Delaware
Brazil
New York
Mexico
Connecticut, Rhode Island
Argentina, Chile, Peru, Columbia, Panama, Rest of Latin America
Massachusetts
Egypt, Nigeria, Morocco, Jordan, Ghana, Liberia, Rest of MENA
Print Stack of Duponts sorted by NCEBITROA level, quarterly and annual
Real Estate Investment Trusts
Real Estate Management & Development
Commercial Banks
Thrifts & Mortgage Finance
Capital Markets
Diversified Financial Services
Consumer Finance
Insurance
Machinery
Electrical Equipment
Trading Companies & Distributors
Aerospace & Defense
Building Products
Marine
Transportation Infrastructure
Airlines
Commercial Services & Supplies
Household Durables
Textiles Apparel & Luxury Goods
Leisure Equipment & Products
Specialty Retail
Multiline Retail
Internet & Catalog Retail
Distributors
Hotels Restaurants & Leisure
Diversified Consumer Services, Media
Auto Components, Automobiles
Electronic Equipment & Instruments
Communications Equipment
Computers & Peripherals, Office Electronics
Software
It Services
Internet Software & Services
Semiconductors & Semiconductor Equipment
Metals & Mining
Chemicals, Containers & Packaging
Construction Materials, Paper & Forest Products
Biotechnology
Pharmaceuticals
Life Sciences Tools & Services
Health Care Providers & Services
Health Care Equipment & Supplies
Health Care Technology
Oil Gas & Consumable Fuels
Energy Equipment & Services
Food Products
Beverages, Tobacco
Food & Staples Retailing
Personal Products
Household Products
All Utility Industries
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
HVAL 1 Screen, HVAL 2 Screen, PE/G
Net Cash Screen, Most Down Screen, Inside Buying Screen
Rising Estimates Screen, ROA 2 Screen (momentum turn)
ROA 1 Screen (long term trend), ROA 3 Screen (Level)
IPO Screen/Lockup Screen
Vermont, New Hampshire, Maine
Wireless Telecommunication Services, Diversified Telecommunication Services
HVAL 1 Screen, HVAL 2 Screen
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Investment Focus: Quality
• High Quality Companies
– Financial
• High margins with limited volatility
• Strong balance sheet with low debt
• High returns on capital
– Business Model
• Sustainable competitive advantage
• Steady business
– Management
• Experienced
• Proven
• Our focus on Quality may lead to stronger relative performance
during bear (not bull) markets
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Investment Types
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BICs (Best-In-Class Growth Companies)
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Fallen Angels
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Stalwarts
“Quality” being a desired characteristic across the portfolio
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Investment Type: Best-In-Class Growth
• BICs
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15%+ earning growth, with plenty of headroom
Quality management team
Good business model with sustainable competitive advantage
Strong financials
• Find them small & undiscovered; buy and hold
– Compound the earnings growth
– P/E expansion as they become discovered
• P/E to Long-Term Growth Rate (“LTG”) as a key valuation metric
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Investment Type: Fallen Angels
• Fallen Angels
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Quality growth companies
Hit a bump in the road
Temporarily priced as a “value” stock
Growth investor background gives us an advantage here
• Buy them low and hold through the recovery
– Capture earnings growth as it returns
– Capture P/E expansion as market’s confidence returns
• Price to peak earnings as a key valuation metric
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Investment Type: Stalwarts
• Stalwarts (mature BICs)
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Growth continues (although may only be 10-15%)
Quality management
Great business model with very strong competitive advantage
High cash flow and solid balance sheet
• Often paying dividends and/or buying back stock
• Buy them at a good value
– Can’t overpay since growth is slowing
• P/E to LTG+Yield as a key valuation metric
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Sell Discipline
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Best-in-Class Growth Companies
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Fallen Angel
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Valuation: Turn around gets priced into the stock
Determine problems are deeper than expected
Stalwarts
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Valuation (PE/LTG) no longer attractive
Thesis has changed or was wrong
Valuation (PE/LTG+Yield) no longer attractive
3D Matrix Tool
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Deterioration in Quality, Value and/or Momentum
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Portfolio Risk Management
• Portfolio Quality
– Deep due diligence
– Focus on high quality companies
• Portfolio Diversification
– Sectors
– Countries
• Position Sizes
– Smaller positions as we peel the onion on newer companies
– Smaller positions where there is greater valuation risk
– Smaller positions on riskier business models
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Global Opportunities Fund
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A Global Go Anywhere Portfolio
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30+ developed, emerging, and frontier countries
Global view provides better understanding of where opportunities exist
Flexibility to shift to where we find the most interesting companies
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Primarily Small and Micro Caps
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Country
Sector
Market Cap
Faster growth
Less discovered
Greater market inefficiencies
Two Share Classes
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Investor (GPGOX): 1.25% fee / 1.75% expense cap ($2000 minimum)
Institutional (GPGIX): 1.25% fee / 1.50% expense cap ($100,000 minimum)
The objective of the Global Opportunities Fund is long-term growth of capital.
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Global Opportunities Fund Composition
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Positions
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100-150 holdings (<0.5% of Fund’s universe)
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Broad Country Exposure
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U.S., Foreign Developed, Emerging, and some Frontier
Weighting based on bottom up opportunities (benchmark agnostic)
Broad Industry Exposure
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Bulk of assets in top 50 positions; long portfolio tail
Largest positions 2-3%; could go to 5%+ for special opportunities
Weighting based on bottom up opportunities (benchmark agnostic)
Low Turnover
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Buy-and-hold philosophy
Evaluating companies on 5+ year horizon
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International Opportunities Fund
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An International Small/Micro Cap Portfolio
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30+ foreign developed, emerging, and frontier countries
Global view provides better understanding of where opportunities exist
Flexibility to shift to where we find the most interesting companies
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International Small and Micro Caps: The Single Most Compelling Market
Segment Globally
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Country
Sector
Market Cap
Faster growth
Less discovered
Compelling Valuations
Two Share Classes
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Investor (GPIOX): 1.25% fee / 1.75% expense cap ($2000 minimum)
Institutional (GPIIX): 1.25% fee / 1.50% expense cap ($100,000 minimum)
The objective of the International Opportunities Fund is long-term growth of capital.
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International Opportunities Fund Composition
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Positions
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100-150 holdings
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Broad Country Exposure
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Foreign Developed, Emerging, and some Frontier
Weighting based on bottom up opportunities (benchmark agnostic)
Broad Industry Exposure
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Bulk of assets in top 50 positions; long portfolio tail
Largest positions 2-3%; could go to 5%+ for special opportunities
Weighting based on bottom up opportunities (benchmark agnostic)
Low Turnover
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Buy-and-hold philosophy
Evaluating companies on 5+ year horizon
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Fund Differences
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Global Opportunities Fund: More Diversified
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Broader Geographic diversification due to significant U.S. component
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Broader Style diversification, including Fallen Angels & Stalwarts
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International Opportunities Fund is focused primarily on Best-in-Class
Growth
Broader Market Cap diversification, with Stalwarts frequently being SMID
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International Opportunities Fund excludes the U.S.
International Opportunities Fund is focused on Small and Micro cap
companies
International Opportunities Fund: More Aggressive
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Exclusive focus on our favorite global market segment:
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Undiscovered and lesser known foreign small and micro cap companies
Best-in-Class Growth companies
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Why Our Favorite Market Segment for the Next Decade is…
International Small/Micro Caps
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Growth is Abroad
The Foreign Middle Class is Expected to Grow Dramatically
Foreign Economies are Driving Global Growth
People in Middle Class (millions)
6,000
5,000
4,000
3,000
2,000
1,000
0
2009
2020
North America
Europe
2030
Rest of World
Source: “The Emerging Middle Class in Developing Countries,”
Organization for Economic Co-operation and Development (OECD),
January 2010
Source: International Monetary Fund, 12/31/10.
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Much Bigger Universe of Opportunities
63,923
companies
14,502
companies
US
Outside US
Small/Micro
Large/Mid
Source: Bloomberg, 12/31/10. Small-Micro names are defined as having market caps of under $3 billion USD.
Large-Mid names are defined as having market caps above $3 billion USD
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More New Companies
Foreign Initial Public Offerings (IPOs) have
Outpaced U.S. IPOs by Almost 12-to-1
US: 8%
Outside the US, 92%
5631 IPOs
Source: Bloomberg, Data for the time period 1/2/05 – 10/31/10
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Micro/Small Caps Have the Advantage
• Growth Advantage
– Law of large numbers gives smaller companies the growth edge
• For example, $20M in new revenue is 20% growth for a $100M company, but
only 2% growth for a $1B company
• Undiscovered Advantage
– Micro caps are dramatically underfollowed relative to large caps
Foreign Micro & Small Cap Stocks are Less Followed
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12
Large Cap
MidCap
6
SmallCap
1
0
MicroCap
5
10
15
Average Number of Analysts Covering Stock
Source: FactSet 10/31/2010.
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U.S. Investors Remain Underinvested Abroad
Home Country Bias Leads to Under-Allocation to Foreign Stocks
100%
20%
80%
68%
60%
81%
40%
80%
20%
32%
19%
0%
GDP
Investable Universe
US
Foreign
Sources:
GDP PPP (purchasing power parity) comes from the World Bank as of 12/31/10.
Investable Universe come from the IMF (International Monetary Fund) as of 12/31/09.
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Typical Allocation
Why Consider Investing With Grandeur Peak?
• Experience
– Seasoned, award-winning portfolio managers, with a strong team
• Repeatable Investment Process
– Disciplined approach
• Global Perspective
– Better understanding of opportunities
• Small/Micro Cap Expertise
– Most compelling source of growth
• Nimbleness
– Small asset base under the guidance of an experienced team
Past performance is no guarantee of future results
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Contact Us
Phone:
1.855.377.PEAK (7325)
E-Mail:
[email protected]
Mail:
Grandeur Peak Funds
P.O. Box 13664
Denver, CO 80201
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Appendix
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Biographies
Robert T. Gardiner, CFA
Portfolio Manager, CEO, & Director of Research
Mr. Gardiner is co-manager of the Grandeur Peak Global Opportunities portfolio and the Grandeur Peak Global International
Opportunities portfolio. He is also the CEO and Director of Research for Grandeur Peak Global Advisors.
Mr. Gardiner was a senior partner, principal shareholder, and portfolio manager at Wasatch Advisors before founding Grandeur Peak
Global Advisors in 2011. Mr. Gardiner has been in the Investment Management industry since 1981, and involved in managing equity
portfolios since 1986. He is a highly acclaimed portfolio manager with numerous recognitions. Mr. Gardiner’s experience includes:
1986 – 1995
Investment Committee member for the Wasatch Small Cap Growth (WAAEX) and Core Growth (WGROX) funds.
1995 – 2006
Founder and Lead Manager of the Wasatch Micro Cap Fund (WMICX)
1997 – 2001
Founder and Co-Manager of the Wasatch Small Cap Value Fund (WMCVX)
2003 – 2004
Founder and Co-Manager of the Wasatch Micro Cap Value Fund (WAMVX)
2005 – 2007
Wasatch Advisors Director of Research
2008 – 2011
Founder and Lead Manager of the Wasatch Global Opportunities Fund (WAGOX)
Mr. Gardiner was a Director of Wasatch Advisors and a member of the Executive Management Team from 1994 – 2007. During his time at
Wasatch, the firm grew from 1 to 18 products and from $20 million to $11 billion under management. Mr. Gardiner was also a member of
the original investment committee for Cross Creek Capital, a wholly-owned subsidiary of Wasatch Advisors investing in late stage private
equity.
Mr. Gardiner graduated Magna Cum Laude from the University of Utah with a B.A. in Physics, a B.S. in Mathematics, and minors in
Chemistry and French. He speaks French and lived in France for two years. Mr. Gardiner holds the Chartered Financial Analyst designation
and is a member of the Salt Lake City Society of Financial Analysts. Robert is a dedicated father of five, an outdoor enthusiast, and
currently serves as the local Boy Scout Troup Leader.
Past performance is no guarantee of future results
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Biographies
Blake H. Walker
Portfolio Manager & Chief Investment Officer
Mr. Walker is co-manager of the Grandeur Peak International Opportunities portfolio and the Grandeur Peak Global Opportunities
portfolio. He is also the Chief Investment Officer for Grandeur Peak Global Advisors.
Mr. Walker was a partner at Wasatch Advisors and a portfolio manager co-managing two funds at Wasatch Advisors before co-founding
Grandeur Peak Global Advisors in 2011. Mr. Walker joined the research team at Wasatch Advisors in 2001 and launched the Wasatch
International Opportunities Fund (WAIOX) in 2005. He teamed up with Robert Gardiner in 2008 to launch the Wasatch Global
Opportunities Fund (WAGOX) while continuing as the lead manager of the International Opportunities Fund. Mr. Walker is an awardwinning international portfolio manager. His experience includes:
2001 – 2005
Research Analyst on the Wasatch Micro Cap Fund (WMICX) and Wasatch International Growth Fund (WAIGX)
2005 – 2011
Founder and Lead Manager of the Wasatch International Opportunities Fund (WAIOX)
2008 – 2011
Founder and Co-Manager of the Wasatch Global Opportunities Fund (WAGOX)
Mr. Walker has a B.S. in Accounting from Brigham Young University. He is originally from Toronto, Canada. Mr. Walker speaks French and
lived in France for two years. Blake is an engaged father of three who shares with them his passion for skiing, basketball, and hockey.
Past performance is no guarantee of future results
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Biographies
Eric W. Huefner, MBA
President, COO, & CCO
Mr. Huefner is President, COO, and CCO of Grandeur Peak Global Advisors. Before co-founding Grandeur Peak Global Advisors in 2011,
Mr. Huefner was a partner, vice president, and the director of the $8B mutual fund business at Wasatch Advisors. Mr. Huefner was also a
vice president of Wasatch Funds.
Mr. Huefner’s experience at Wasatch Advisors spanned eleven years. He joined the firm’s operation team in 1980, and then went on to
become a research analyst and member of the investment committee before deciding to pursue an MBA. Mr. Huefner returned to
Wasatch Advisors in 2006 to manage the mutual fund business and lead the firm’s marketing efforts.
Prior to rejoining Wasatch Advisors, Mr. Huefner was a Sr. Business Director managing the V8 Beverages line for Campbell’s. He spent the
prior 12 years in various management positions at Kraft/Nabisco, Sara Lee, and Campbell’s. Before business school, Mr. Huefner spent
three years as a middle and upper school math teacher, and a basketball, golf, soccer, and lacrosse coach.
Mr. Huefner graduated Magna Cum Laude from Harvard University with an A.B. in Economics. He received an MBA with honors from the
University of North Carolina at Chapel Hill. Mr. Huefner has lived in Israel and Switzerland. He currently serves as a Trustee on The
Waterford School Board of Trustees. Eric cherishes his role as father to four girls and is often found coaching his daughter’s athletic teams.
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Biographies
Amy H. Sunderland, CFA
Sr. Research Analyst
Ms. Sunderland is a Sr. Research Analyst at Grandeur Peak Global Advisors, with a specialty focus on the consumer sector.
Ms. Sunderland was a junior and later senior research analyst at Wasatch Advisors from 2003-2011. She was a general analyst on the
Wasatch Small Cap Fund (WAAEX) and the Wasatch Micro Cap Fund (WMICX), as well as a consumer sector specialist. Before Wasatch,
Ms. Sunderland worked on the Goldman Sachs’ Private Wealth Management team in Salt Lake City, Singapore and Hong Kong.
Ms. Sunderland graduated Magna Cum Laude in the top 1% of her class from the University of Utah where she earned a B.S. in Finance
and Business Information Systems. Ms. Sunderland was selected as the Outstanding Finance Scholar of the Year by the dean, and a CocaCola Scholar.
Ms. Sunderland was born in China and is fluent in Mandarin Chinese. She moved to Salt Lake City at age 10, bought her first house at age
12, and built a successful real estate business. Ms. Sunderland began investing in stocks at age 14 and has been a passionate investor ever
since. Amy currently resides in Salt Lake City and Hong Kong with her husband and son. She enjoys reading, kickboxing, basketball,
camping, hiking, and traveling to places that are off the beaten path.
Randy E. Pearce, CFA, MBA
Sr. Research Analyst
Mr. Pearce is a Sr. Research Analyst at Grandeur Peak Global Advisors, with a specialty focus on the financial sector.
Mr. Pearce was a junior and later senior research analyst at Wasatch Advisors from 2005-2009. He was a financial sector specialist and a
general analyst on the Wasatch Strategic Income Fund (WASIX)—a global equity product with an emphasis in financial companies. In 2010,
Mr. Pearce interned at Thornburg Investment Management as a global equities analyst while earning his MBA.
Mr. Pearce has a B.A. in Business Administration from the University of Utah and an MBA from the University of California at Berkley. He
holds the CFA designation, having passed each of the three levels on his first attempt. Mr. Pearce speaks Portuguese and lived in Brazil for
two years. Randy is the father of three and enjoys skiing, biking, tennis, and reading.
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Biographies
Spencer P. Stewart
Sr. Research Analyst
Mr. Stewart is a Sr. Research Analyst at Grandeur Peak Global Advisors, with a specialty focus on the industrials sector.
Mr. Stewart comes from small cap boutique, Sidoti & Company, in New York City where he was one of the firm’s leading institutional sales
people. Mr. Stewart’s investing passion was evident as he was the top stock picker at Sidoti in the alpha capture program in which the firm
participated. Previously, Mr. Stewart also spent four years as a Jr. Research Analyst at Wasatch Advisors.
Mr. Stewart is the second son of Wasatch Advisors founder and chairman, Sam Stewart, to join his father in the investments profession.
Spence has lived in Mexico and France and speaks Spanish and French. He enjoys running marathons and is actively involved with the Boy
Scouts of America. Spence has relocated from New York City to Salt Lake City to join the Grandeur Peak team.
Robert S. Green, MSF
Quantitative Research Analyst
Mr. Green is a Quantitative Research Analyst at Grandeur Peak Global Advisors.
Mr. Green was a research assistant and then a quantitative portfolio analyst at Wasatch Advisors from 2006-2011. He worked across the
entire research team, as well as having specific roles on the Wasatch Global Science & Technology Fund (WAGTX) and the Wasatch Global
Opportunities Fund (WAGOX). Prior to Wasatch, Mr. Green worked as an associate on the University Venture Fund at the University of
Utah.
Mr. Green graduated Summa Cum Laude from Westminster College in Salt Lake City, UT with a B.S. in Business Finance and a Minor in
Economics. He received a Master of Science in Finance from The University of Utah. Mr. Green is a Level 3 CFA candidate. Rob is the father
of five and enjoys golfing, running, snowboarding, and travelling. Rob also enjoys volunteering in the community and is actively involved
in the neighborhood Cub Scout program.
39
Biographies
Mark Siddoway, CFA, CAIA
Head of Client Relations
Mr. Siddoway is the Head of Client Relations at Grandeur Peak Global Advisors. Before joining Grandeur Peak Global Advisors in 2011, Mr.
Siddoway was the Director of Public Markets Investments at Lehigh University, where he was responsible for investing roughly 80% of
Lehigh’s $1.2B investment portfolio.
Prior to his role at Lehigh University, Mr. Siddoway had spent five years as the Deputy CIO at Utah Retirement Systems (URS) , the retirement
portfolio for public employees in the state of Utah. His additional industry experience includes roles as a fixed income portfolio manager at
Sentry Insurance and as a credit analyst at Beneficial Life Insurance.
Mr. Siddoway graduated from Brigham Young University with a B.A. in Music. He earned an MBA from Brigham Young University, where he
won the Stoddard Prize as the top finance student. Mr. Siddoway holds the CFA designation and the CAIA (Chartered Alternative Investment
Analyst) designation.
Mr. Siddoway speaks French and lived in France for two years. Mark is the proud father of six children. He loves the arts, music, and film. In
fact, Mark’s first career was as an independent recording engineer, before he returned to business school and moved into finance.
40
Biographies
Amy A. Hone, MBA
Vice President, Trading & Operations
Ms. Hone is the Vice President of Trading & Operations at Grandeur Peak Global Advisors. Before joining Grandeur Peak Global Advisors in
2011, Ms. Hone was the Chief Compliance Officer and Director of Internal Audit at Marlin Business Bank in Salt Lake City.
Ms. Hone spent fifteen years in the back office at Wasatch Advisors, including eight years as the Director of Operations, where she helped
the firm navigate from being a domestic investment firm to becoming a global investment manager. Ms. Hone’s prior experience also
includes two years at American Express as a Senior Manager of Internal Audit.
Ms. Hone graduated from the University of Phoenix with a Bachelor’s degree in Business Administration. She earned an MBA from the
University of Utah, with a focus on Management. Ms. Hone is the Chairman of the Board for the non-profit organization People Helping
People, and was a founding member of the Women’s Financial Network. Amy is an enthusiastic mother of two and loves exploring the Utah
outdoors with her family.
41
Stock Screening: Sample DuPont Model
smgr ij EQUITY
SEMEN GRESIK (PERSERO) PT
INDONESIA
Currency: INDONESIAN RUPIAH (IDR)
IDR Mkt Cap 48,045,310
IDR fx rate: 9,345.00
USD Mkt Cap 5,141.29
(Y = yearly, Q = Quarterly)
Periodicity:
Y
# of Periods:
10
PT Semen Gresik (Persero) Tbk manufactures cement including portland cement, oil
well cement, and mixed cement. Through its subsidiaries, the Company also
develops and operates an industrial estate, mines limestone and clay, and
packages and distributes cement.
Ticker: smgr ij
Name:
Country:
Date
SALES
IDR
12/31/99 3,091,660
12/31/00 3,596,410
12/31/01 4,659,203
12/31/02 5,177,543
12/31/03 5,449,941
12/31/04 6,067,558
12/31/05 7,532,208
12/31/06 8,727,858
12/31/07 9,600,801
12/31/08 12,209,850
sls g
8YR
16.5
5YR
17.5
3YR
17.5
1YR
27.2
Date of IPO: #N/A N/A
30D Avg Trading Volume: $
gpm
%
% OF SALES
SG&A
R&D
IDR
38.1
38.7
38.6
31.7
34.7
34.0
38.4
38.1
41.7
43.9
14.1
17.0
17.5
17.0
17.7
18.1
17.6
17.7
16.7
16.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1145778
1186088
1393186
1188763
1369286
1398050
2005205
2224903
2848528
3861277
EBITDA
MAR
37.1
33.0
29.9
23.0
25.1
23.0
26.6
25.5
29.7
31.6
ebitda g
15.9
23.0
24.4
35.6
IDR
OPER INC
MAR
742961
781554
981742
760365
929038
965159
1563780
1779379
2396848
3387186
opin g
20.1
29.5
29.4
41.3
24.0
21.7
21.1
14.7
17.0
15.9
20.8
20.4
25.0
27.7
I&O
IDR
MAR
TX RT
IDR
MAR
shrs
Basic
EPS
PO
RATIO
DIV/
SHR
362491
335374
509848
424366
367053
196010
86172
-77662
-163366
-202343
380470
446180
471894
335998
561985
769150
1477608
1857041
2560214
3589529
PRETAX
12.3
12.4
10.1
6.5
10.3
12.7
19.6
21.3
26.7
29.4
36%
22%
31%
39%
32%
32%
30%
29%
30%
29%
240587
342762
317467
196228
372508
508916
1022569
1295520
1775408
2523545
NET
7.8
9.5
6.8
3.8
6.8
8.4
13.6
14.8
18.5
20.7
5,931
5,931
5,932
5,932
5,931.5
5,931.5
5,931.5
5,931.9
5,937.8
5,923.8
shrs g
0.0
0.0
0.0
-0.2
40.56
57.79
53.52
33.08
62.80
85.80
172.40
218.40
299.00
426.00
EPS g
28.4
46.7
35.2
42.5
40%
40%
50%
35%
46%
36%
26%
16.22
23.11
26.76
11.50
28.74
30.72
44.31
#N/A N.A.
149.66
215.19
DIV g
32.2
49.6
69.3
43.8
PE FY1
PE FY2
PE/LTG
Last Price
1M Return
3M Return
12M Return
52 WK High
52 WK Low
Date
12/31/99
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
8100.0
7.3
21.8
133.1
8100.0
3400.0
REC
6.4
5.8
6.5
6.1
5.7
6.5
6.5
7.9
8.3
8.2
SOURCE
12/31/99
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
643,404
747,296
728,912
624,626
812,757
941,807
1,463,994
1,741,044
2,227,088
2,997,636
ALTMAN Z
AZS HEALTH
3/10/2009
0%
138%
TURNOVER RATIOS
INV
PLANT
NCTA
5.7
0.6
0.5
5.4
0.7
0.5
6.1
1.0
0.7
6.1
1.2
0.8
7.1
1.4
0.9
6.5
1.7
1.1
7.2
2.2
1.3
8.5
2.8
1.6
9.2
3.1
1.7
7.7
3.7
1.8
STOCK BETA
Yield
BV/SHARE:
NCINTTA
0.5
0.6
0.7
0.8
0.9
1.1
1.3
1.6
1.8
1.9
CF: incl. chnges in payables
capx+acq
USES
S/U
wc use
333,371
419,761
-291,145
-136,361
188,382
281,204
-53,840
61,542
620,474
12.94774
A
4
1.08
#N/A N/A
1379.8
AZS GLB RANK %
1/22/2010
223,692 557,064
-112,039 307,722
160,771 -130,374
40,633
-95,728
165,607 353,989
168,273 449,477
232,339 178,499
355,840 417,382
746,313 1,366,787
Ind Sector: Materials
Ind Group: Construction Materials
Ind Subgrp Construction Materials
Exchge:
IJ
1.34
2.37
(4.79)
(8.49)
2.66
3.26
9.75
5.34
2.19
REC
-10.2
13.3
0.1
29.1
45.5
25.6
FCF
190,233
421,190
755,000
908,484
587,818
1,014,517
1,562,545
1,809,706
1,630,849
IBES 5yr EST G
IBES FY 1 EST
IBES FY 2 EST
Peak EPS
# ANALYSTS
TOT BUY REC
TOT HOLD REC
TOT SELL REC
YR/YR GROWTH
PLANT
NCTA
INV
23.2
19.7
19.7
40.3
29.4
18.9
SOURCE
12,285,159
11,537,863
10,808,951
10,184,325
9,371,569
8,429,762
6,965,768
5,224,724
2,997,636
518.4
591.1
426.0
24
21
2
1
128.3
121.9
117.5
132.8
125.4
123.5
wc use
1,423,388
1,090,016
670,256
961,400
1,097,761
909,379
628,176
682,016
620,474
96.3
98.4
83.3
91.7
86.6
71.2
NCINTTA
91.4
91.2
83.3
94.1
87.4
71.6
CUMULATIVE DATA
USES
capx+acq
1,981,429
1,757,737
1,869,775
1,709,005
1,668,372
1,502,765
1,334,492
1,102,153
746,313
3,404,817
2,847,753
2,540,031
2,670,405
2,766,133
2,412,144
1,962,668
1,784,169
1,366,787
15.6
13.7
1.34
14.2
22%
14%
50%
51%
Gedung Utama Semen Gresik
Jalan Veteran
Gresik, 61122
Indonesia
Okayama City
62-31-398-1732
Okayama, 700-0952
Japan
Date of IPO #N/A N/A
IPO price#N/A N/A
Abs return from IPO:
4,534,223
VALUATION
MV/S
EV/S
YIELD
Price
PE
2.8%
4.2%
3.3%
1.5%
1.6%
1.7%
1.2%
580.00
550.00
815.00
785.00
1,850.00
1,780.00
3,630.00
5,600.00
4,175.00
7,550.00
8,100.00
14.3
9.5
15.2
23.7
29.5
20.7
21.1
25.6
14.0
17.7
19.0
1.1
0.9
1.0
0.9
2.0
1.7
2.9
3.8
2.6
3.7
3.9
1.8
1.5
1.0
1.1
2.1
1.7
2.7
3.6
2.3
3.4
3.6
19.1
2.2
2.3
3.6%
2.9%
P/BV
EV/ebitda EV/ ebit
1.1
1.5
1.4
3.2
2.8
4.7
6.0
3.7
5.5
5.9
7.6
6.9
4.9
7.5
12.1
10.7
13.0
17.7
9.2
12.1
13.1
<TODAY
3.6
7.9
10.4
<AVG
8YR
5YR
3YR
1YR
3.61
4.05
4.26
3.81
3.39
3.49
3.55
2.93
2.19
FCF
8,880,343
8,690,110
8,268,920
7,513,920
6,605,436
6,017,618
5,003,100
3,440,555
1,630,849
16
30
11
5
11
24
16
10
27
GP
29
-9
15
9
40
15
20
34
Absolute Returns on IBES est
compound growth rates
sales
sls/s
16.5
16.5
17.5
17.5
17.5
17.5
27.2
27.5
hist
pe =
opin
20.1
29.5
29.4
41.3
netinc
28.3
46.6
35.1
42.1
shrs
0.0
0.0
0.0
-0.2
eps
28.4
46.7
35.2
42.5
pe
8.1
-9.7
-5.6
26.9
price
38.7
32.5
27.6
80.8
EST PE
fy1 ret
fy2 ret
s/s g
FCF % SALES
yr
cum
5%
9%
15%
17%
10%
13%
18%
19%
13%
14%
15%
15%
15%
15%
16%
16%
16%
13%
CF
SOURCE
USES
643,404
747,296
585,769
728,912
302,392
624,626
99,868
812,757
25,398
941,807
273,060
1,463,994
556,891
1,741,044
140,032
2,227,088
470,522
2,997,636 1,654,195
REALITY CHECK FROM CF:
DIFFERENCE:
This is a hypothetical example. This is not a stock recommendation.
42
S/U
1.3
2.4
6.3
32.0
3.4
2.6
12.4
4.7
1.8
FCF
161,527
426,520
524,758
787,359
668,746
907,103
1,601,012
1,756,566
1,343,441
SOURCE
12,928,563
12,285,159
11,537,863
10,808,951
10,184,325
9,371,569
8,429,762
6,965,768
5,224,724
2,997,636
2630047
367,589
CUMULATIVE DATA
USES
S/U
4,108,128
3,522,358
3,219,966
3,120,098
3,094,700
2,821,640
2,264,749
2,124,717
1,654,195
1731048
(76,853)
3.0
3.3
3.4
3.3
3.0
3.0
3.1
2.5
1.8
1.5
FCF
8,177,031
8,015,504
7,588,985
7,064,227
6,276,868
5,608,122
4,701,019
3,100,007
1,343,441
898999
444,442
eps g
x 1.25 = x 1.25 =
19
26
22
24.6% 66.8% 42.8%
42.1% 90.1% 62.9%
RAW DATA: ASSETS (IDR)
BALANCE SHEET QUALITY
CASH BS LTLTD
CUR
A report
PAY
NCCA-PAY
REC
INV
PLANT BSgOTHER
will etc ASSET
NCTA
TASS
N.DT/EBITDA
N.DT/Equity
Borrow BS cur
asset
BS_ACCT_PAYABLE
BS_ACCT_NOTE_RCV
BS_INVENTORIES
BS_NET_FIX_ASSET
DEF CHNG
BS TOT
OTHER
ASSETTOTEQTY
SHRHLDRTA/E
EQY NET DEBT
614,456
2,801,637
1,734,995
101,840
1,018,699
486,010
538,094
5,139,597
299,451
6,588,884
7,203,340
2,768,511
2.6
2,187,181
191% 79%
769,151
2,926,152
2,251,767
130,546
1,352,070
624,372
662,610
4,833,520
417,394
6,770,119
7,539,270
3,017,238
2.5
2,157,001
182% 71%
2,102,008
2,047,468
3,999,055
125,216
1,771,831
716,884
769,957
4,604,937
151,105
6,661,067
8,763,075
3,205,327
2.7
(54,540)
-4%
-2%
539,809
1,575,030
2,375,954
355,459
1,480,686
845,744
853,838
4,368,676
125,153
6,332,537
6,872,346
3,232,489
2.1
1,035,221
87%
32%
641,810
904,399
2,462,719
476,584
1,344,325
954,043
769,902
3,968,590
125,624
5,917,687
6,559,496
3,391,210
1.9
262,590
19%
8%
907,976
640,731
2,836,339
395,656
1,532,707
929,913
933,829
3,674,298
152,630
5,757,856
6,665,832
3,705,088
1.8
(267,245)
-19%
-7%
1,423,642
179,559
3,740,623
503,070
1,813,911 1,158,025 1,040,199 3,422,799
130,978
5,873,322
7,296,964
4,556,358
1.6 (1,244,083)
-62% -27%
1,928,589
178,791
4,153,263
464,604
1,760,070 1,104,557 1,025,982 3,162,919
177,654
5,567,830
7,496,419
5,581,177
1.3 (1,749,798)
-79% -31%
2,928,556
126,078
5,267,912
517,744
1,821,613 1,155,466 1,047,872 3,101,866
143,289
5,586,672
8,515,228
6,719,587
1.3 (2,802,478)
-98% -42%
3,836,184
156,821
7,083,422
805,152
2,442,086 1,490,271 1,580,552 3,308,878
194,337
6,766,776 10,602,960 8,173,716
1.3 (3,679,363)
-95% -45%
S/U
SLS
4.9
4.6
3.4
4.8
8.2
7.4
10.1
14.1
7.7
10.6
11.5
CASH/SLS CASH/TA
20%
21%
45%
10%
12%
15%
19%
22%
31%
31%
FCF % SALES
yr
cum
4%
9%
10%
14%
11%
12%
18%
18%
11%
13%
13%
14%
14%
14%
15%
15%
14%
11%
9%
10%
24%
8%
10%
14%
20%
26%
34%
36%
DEDI ADITYA SUMANAGARA, PRESIDENT COMMISSIONER
DARJOTO SETYAWAN, VICE PRESIDENT COMMISSIONER
DWI SOETJIPTO, PRESIDENT DIRECTOR
HERU D ADHININGRAT, VICE PRESIDENT DIRECTOR
SUNARDI PRIONOMURTI, SECRETARY
CHOLIL HASAN, DIRECTOR:FINANCE
HITOSHI OZAKI, MANAGING DIRECTOR
EBITDA
4
17
-15
15
2
43
11
28
36
ORIGINS OF GROWTH
EBIT
PRTX
NET
5
26
-23
22
4
62
14
35
41
17
6
-29
67
37
92
26
38
40
1=25+
2=17-25
3=10-17
4=<10
1=<20
2=20-29
3=30-40
4=>40
MARGIN
level
trend
23.5
volat
42
-7
-38
90
37
101
27
37
42
SALES
trend
y/y g
DT/
TX
exch
rate
-10
-3
-30
16
-7
31
-2
22
11
83.1
-72.8
24.3
46.7
27.0
41.4
10.7
-21.0
-2.4
16.5
9675.0
10400.0
8950.0
8420.0
9270.0
9830.0
8995.0
9393.0
11120.0
9404.0
fx G
-1.3
0.3
1.5
-15.4
roa+
robe
S/U
op marg
EPS
42
-7
-38
90
37
101
27
37
42
OCF
-31
72
15
5
-23
44
30
30
27
turn
overs
lt gr
0
TOTAL
SCORE
17.5
WC/SALES
CUR RATIO
DEBT/TC
Z-SCORE
GRADE
-6%
8%
-28%
2%
0%
2%
2%
9%
9%
9%
1.3
1.9
1.3
1.4
1.3
1.6
1.7
2.8
3.6
3.4
62%
60%
63%
53%
48%
44%
38%
26%
21%
23%
1.34
1.46
1.56
2.02
3.53
3.79
6.86
12.78
11.02
13.98
D
D
D
C
A
A
A
A
A
A
Cash/Share 647.6
Cash from Cash Flow Statement
O/CF
C/WC
OP CF
CAPX
774621 151257
623364
-245927
532202 612294
-80092
-98457
914876 -233541 1148417 -166222
1051821 -174811 1226632 -179404
1107786 -24402 1132188 -100447
852263 444370
407893
-125313
1224500 540839
683661
-190840
1595931 1093390 502541
-190297
2076142 1128858 947284
-322645
2630047 1169284 1460763 -561764
CASH CONVERSION CYCLE
PAY PERIOD
inv collect
DSOs
19
103
57
22
110
63
16
98
56
37
88
60
49
79
64
36
85
56
40
82
56
31
69
46
34
68
44
43
84
45
# Days
141
152
138
111
94
105
98
84
78
86
CORE PROFIT LEVELS
NCROA
FCF
528695
433745
748654
872417
1007339
726950
1033660
1405634
1753497
2068283
EBITDA/
NCROA
EX-PAYB
ROBE
NGW ROA
11.3
11.5
14.7
12.0
15.7
16.8
26.6
32.0
42.9
50.1
11.5
11.8
15.0
12.7
17.1
18.0
29.1
34.9
47.3
56.8
8.7
11.4
9.9
6.1
11.0
13.7
22.4
23.2
26.4
30.9
18.2
18.7
21.4
19.2
23.6
24.9
34.9
41.3
52.3
58.7
Disclosures
The objective of both the Grandeur Peak Global Opportunities Fund and the Grandeur Peak International Opportunities Fund is long-term
growth of capital. These Funds are new and have limited operating history.
Mutual fund investing involves risks and loss of principal is possible. Investing in small and micro cap funds will be more volatile and
loss of principal could be greater than investing in large cap or more diversified funds. Investing in foreign securities entails special
risks, such as currency fluctuations and political uncertainties, which are described in more detail in the prospectus. Investments in
emerging markets are subject to the same risks as other foreign securities and may be subject to greater risks than investments in
foreign countries with more established economies and securities markets.
An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus,
containing this and other information, visit www.grandeurpeakglobal.com or call 1-855-377-PEAK (7325). Please read it carefully
before investing.
Grandeur Peak Funds will deduct a 2.00% redemption proceeds fee on Fund shares held 60 days or less. The Advisor has contractually
agreed to limit the expenses on Investor share classes to 1.75% and on Institutional share classes to 1.50% until at least 8/31/2013. For
more complete information including charges, risks and expenses, read the prospectus carefully.
Wasatch Advisors is not affiliated with Grandeur Peak Global Advisors or with ALPS Distributors, Inc.
CFA® is a trademark owned by CFA Institute. The Chartered Financial Analyst (CFA) designation is issued by the CFA Institute. Candidates
must meet one of the following prerequisites: undergraduate degree and 4 years of professional experience involving investment decisionmaking, or 4 years qualified work experience (full time, but not necessarily investment related). Candidates are then required to undertake
extensive self-study programs (250 hours of study for each of the 3 levels) and pass examinations for all 3 levels.
Valuation is the process of determining the current worth of an asset or company.
P/E is the Price-to-Earnings ratio (the ratio of the current price divided by typically the earnings over the past 12 months) .
Peak Earnings are the highest level of earnings the company has achieved historically.
DuPont is a template for statistical analysis of various financial metrics of a company.
43
Disclosures Continued
P/E Compression Risk is the risk that a company trading at a high P/E ratio may grow its earnings yet not trade for a higher price due to a
declining P/E ratio
©2011 Grandeur Peak Global Advisors, LLC
Grandeur Peak Funds are distributed by ALPS Distributors, Inc. (“ADI”). Eric Huefner and Mark Siddoway are registered representatives of
ADI.
GPG000119 9/30/2012
44