1. Returns to Style using Style Research’s Markets Analyzer South Korea End February 2011

2. International Experience Style Investing works Value and Small Cap works long term Best Value Markets – Japan & Korea Most markets have small cap premium High beta stocks do not generally perform well

3. Overview Value works long term – like in other markets – Sales to Price best last 10 years – 5.0% pa xs return Mid cap performs better than large cap – Unlike other markets High Beta does not work – like other markets Nothing works consistently – Top 10 inconsistent over different time periods

4. Approach Benchmark = market – All stocks with market cap of USD 100 million Analysis after sector adjustment – Factor screen within sectors – Eliminates sector bias Rebalanced every 6 months – Repriced every month – Includes dividends

5. Value

6. Book Value per Share

7. Dividend Yield

8. Earnings per Share to Price

9. Cashflow per Share to Price

10. Sales per Share to Price

11. EBITDA to Price

12. Growth From September 2002

13. Return on Equity

14. Growth in Earnings per Share

15. Income to Sales

16. Sales Growth

17. IBES 12 month Forward Growth in Earnings per Share From September 2002

18. IBES FY1 Earnings Revisions From September 2002

19. Other

20. Market Cap

21. Beta

22. Momentum 6 months

23. Momentum 12 month

24. Quality From September 2002

25. Low Accruals

26. Debt to Equity

27. Stability of Earnings Growth

28. Sustainable Growth Rate

29. Stability of Sales Growth

30. Stability of IBES 12 mth Growth Forecast From September 2002

31. Returns to Style – last 10 years Quality and Value works! SA, annualised

32. 10 year XS returns

33. Weight: Market Cap, Rebal 6 mths 5.0% pa

34. Weight: Market Cap, Rebal 3 mths 6.7% pa

35. Weight: Earnings, Rebal 6 mths 11.7% pa

36. Comparison

37. Overview Value works long term – like in other markets – Sales to Price best last 10 years – 5.0% pa xs return Mid cap performs better than large cap – Unlike other markets High Beta does not work – like other markets Nothing works consistently – Top 10 inconsistent over different time periods – Rebalance and weighting schemes make a difference