Neil Veitch Fund Manager SVM Asset Management SVM UK Opportunities Fund

Neil Veitch SVM Asset Management Key Facts  Only involved in Fund Management  UK, European and Global specialists  Highly incentivised  Agile and capacity aware = Performance Source: SVM 31 Dec 06

Neil Veitch Performance Boutique Fund Name% growthsector rank SVM UK Opportunities35.81/324 SVM UK Alpha25.326/324 SVM UK 100 Select22.445/324 SVM Continental Europe24.310/103 SVM Global Opportunities12.72/181* SVM All Europe SRI6.43/21** Source: Lipper Performance for 12 months to 31/12/06 except *from launch 15/05/06 & ** from launch 31/10/06 …..so how did we do last year?

Neil Veitch What do clients expect of a Fund Manager?  Buy stocks that are trading at a discount to intrinsic value  Sell them when they achieve full value or when there is more upside elsewhere Buy low – Sell high Balfour Beatty share price Sold First Bought Bought again Source: Bloomberg

Neil Veitch What excites the market?  Higher Growth  Operational Restructuring  Financial restructuring  M&A “Ch ch changes” Special Situations

Neil Veitch Consensus equals index return less charges Source : Bloomberg FTSE 350 average number of analysts per company by market cap % of FTSE

Neil Veitch Size matters Example Market cap of the 125 th company in the FTSE 250 = £947m Fund SizeHoldingOwnership of shares in issue £750m2%1.6% £2bn2%4.2% £4bn2%8.4% Source : Bloomberg 31/12/06

Neil Veitch The Dilemma – getting in is easy “All you need is love”

Neil Veitch The Dilemma – Getting out can be harder “Yesterday, all my troubles seemed so far away”

Neil Veitch Aim to sell on the last piece of good news C&C Group share price Buy  Targets could prove conservative  Cider market is being created  Growth in a stagnant market Sell  Analysts forecasts  Good news fully discounted  Potential seasonal impact Source: Bloomberg Bought Sold

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Company Analysis - Weir Group  Market Cap £1087m  Global producer of specialised pumps and valves.  Pricing Power  Major supplier to oil, gas and utility sectors – organic sales growth of >10% per annum  Restructuring programme well advanced  Share buy backs to continue Bought Weir Group Share Price Source: Bloomberg

Neil Veitch Disciplined Company Analysis  Top line growth  Margins  EV/Sales  Cash Conversion Source: SVM

Neil Veitch Disciplined Company Analysis  Top line growth  Margins  EV/Sales  Cash Conversion Source: SVM

Neil Veitch Disciplined Company Analysis  Top line growth  Margins  EV/Sales  Cash Conversion Source: SVM

Neil Veitch Disciplined Company Analysis  Top line growth  Margins  EV/Sales  Cash Conversion Source: SVM

Neil Veitch Disciplined Company Analysis  Top line growth  Margins  EV/Sales  Cash Conversion Source: SVM

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Process – Find, Analyse, Decide

Neil Veitch Portfolio activity during 2006 “A little less conversation a little more action, please” Number of Stocks Source : SVM

Neil Veitch Will it look like this in 6 months? Size Analysis Sector Analysis Source : SVM 31/12/06

Neil Veitch Top of the Pops 1 Year3 Years5 YearsLaunch* SVM UK Opportunities35.8%107.7%119.7%195.9% Sector Ranking 1/3246/2847/2272/192 Cumulative Performance, % change to 31 st December 2006 Source: Lipper * Launch 20/03/00 Performance to “make you feel like dancing”

Neil Veitch What should you do next? Buy Buy Baby Baby Buy Buy………

Neil Veitch FOR PROFESSIONAL ADVISERS ONLY Please remember that past performance should not be seen as an indication of future performance. Stockmarkets and currency movements may cause the value of an investment to fall as well as rise and investors may not get back the amount originally invested. Investing in small companies may increase the volatility of the fund. Disclaimer The information provided in this presentation is for the sole use of those attending the presentation. It may not be reproduced in any form without the express permission of SVM Asset Management and to the extent that it is passed on, care must be taken to ensure that this is in a form which accurately reflects the information presented here. Regulatory Status SVM Asset Management is authorised and regulated by the Financial Services Authority *Source: Lipper Hindsight, UK All Companies, mid to mid, UK net, to last quarter end 31/12/06 Investment Warning