1. Information Technology Company Presentation Scott McGrath John Morgan Denise Morrison By: Finance 724/824 SIM Class Autumn 2009

2. Agenda Recommendation Recap Sector Presentation Company Analysis –MSFT –IBM –Oracle –NCR Summary

3. Recommendation Sell all MSFT-461 bps Buy IBM+252 bps (bring to 450) Buy ORCL+91 bps (bring to 450) Buy NCR+118 Keep IT Sector in line with S&P @ 19%

4. Recap Recommendation Long Term: –Info Tech will be sector leader amongst S&P Short Term: –Have enjoyed strong outperformance –Rebound in economy/spending may take time

5. Recap Recommendation  Bring our Sector weight in line with S&P500 Why? –Info Tech sector is up 42% YTD compared to 14% for the S&P 500 GDP Growth forecasted 2% – 2.5% for years to come  puts some pressure on IT growth Majority of growth s/t likely to come from smaller companies (we don’t own) – Being in-line with S&P 500 index still has Info Tech at a 19% allocation

6. 10/31/2009 - Student Investment Management Fund (SIM) MTDTrailing 3MOCalendar YTDFiscal YTDTrailing 12MO3YR5YR10YR15YRInception S&P 500 -1.86%5.48%17.05%13.46%9.80%-7.02%0.33%-0.95%7.33%8.22% SIM (Gross of fees) -2.23%4.29%18.90%13.47%10.07%-7.25%0.26%0.51%6.56%7.32% SIM (Net of fees) -2.23%4.15%18.46%13.33%9.52%-7.71%-0.24%0.01%6.03%6.79% + Net Outperformance/ - (Net Underperformance) -0.37%-1.33%1.41%-0.13%-0.28%-0.69%-0.57%0.96%-1.30%-1.43% SectorS&P 500 WeightSIM Weight+/- Top 5 Performers Top 5 Portfolio Movers Consumer Discretionary9.11%7.51%-1.60% Safeway Inc. 13.24% Safeway Inc. 13.24% Consumer Staples11.94%12.23%0.29% ConocoPhillips Co.11.12% ConocoPhillips Co.11.12% Energy12.35%12.80%0.45% Visa Inc.9.62% Microsoft Corp.7.81% Financials14.66%6.59%-8.07% Microsoft Corp. 7.81%BP plc. - ADR6.37% Health Care12.65%13.13%0.48% BP plc. - ADR 6.37%Visa Inc. 9.62% Industrials10.09%11.97%1.88% Information Technology19.04%21.97%2.92% Bottom 5 Performers Materials3.39%4.52%1.13% NCR Corp. -26.56% Telecommunication Services3.09%3.51%0.43% First Solar-20.23% Utilities3.68%3.19%-0.49% Comcast Corp.-14.10% Cash0.00%2.51% UTI Worldwide Inc.-13.88% Dividend Receivables0.00%0.08% Monsanto Co. -13.20% 100.00% 0.00% Top 10 Holdings TickerSecurity Mkt. Value% Mkt. Value RIGTransocean Ltd. $855,8824.75% MSFTMicrosoft Corp. $832,9814.62% BPBP plc. - ADR $832,3144.62% OSKOshkosh Truck Corp. $784,6264.36% PEPPepsico Inc. $720,5454.00% HPQHewlett Packard Co. $713,1343.96% JNJJohnson & Johnson Co. $671,7533.73% ORCLOracle Corp. $651,9903.62% COPConocoPhillips Co. $617,2143.43% TEVATeva Pharmaceutical Industries Ltd. $615,8563.42% Grand Total $7,296,29540.51%

7. The Ohio State University Fisher College of Business Student Investment Management Portfolio Portfolio Appraisal Record November 29, 2009 StockSharesCost/ShareTotal CostCurrent PriceCurrent ValueGain (Loss)Weight HPQ15,02647.20709,227.2049.07737,325.8228,098.623.87% IBM3,000118.64355,920.00125.70377,100.0021,180.001.98% INTC27,90022.07615,753.0019.11533,169.00(82,584.00)2.80% MSFT30,03927.76833,882.6429.22877,739.5843,856.944.61% NCR40,30026.541,069,562.009.67389,701.00(679,861.00)2.05% ORCL30,90017.29534,261.0022.09682,581.00148,320.003.59% Total IT3,597,616.40(520,989.44)18.90% Total SIM19,037,799.41 S&P500 IT Weight18.92%

8. SIM Information Technology Target Price Overview* *Prices as of 11/29/09 CompanySymbolCurrent Price Target Price % Upside IBM, Corp.IBM125.7017337.6% Oracle Corp. ORCL22.0930.4137.6% NCR Corp.NCR9.6711.9023.06% IntelINTC19.1123.5022.97% Hewlett - Packard HOQ49.0759.6821.62% MicrosoftMSFT29.2231.889.10%

9. MSFT vs. S&P 500

10. MSFT Financial Analysis

12. MSFT Recap Target Price of $31.88 (9.1% upside)

13. IBM: Company Overview Industry leader in providing business and information technology services A diversified company having a major impact in most IT industries: –IT infrastructure and business process services –Consulting and systems integration –Computing and storage solutions

14. IBM: Company Overview –Information management, integration, intelligence, and security –Business financing World wide brand recognition Known for Eco Efficient solutions Focuses on business solutions

15. IBM Pros and Cons Pros: Huge company, diversified in many IT industries Mgmt focus on high margin businesses (services, software) Brand Equity Cash = $9.5B Cons: S&P’s largest pension plan– liabilities? Needs business spending to rebound

16. IBM Drivers: Capital Spending

17. Graph of Stock Performance Div Yield: 1.7%

18. IBM Financial Analysis

19. IBM Valuation

21. Sensitivity Analysis 10.010.511.011.512.0 4.0 179.63166.23154.74144.78136.05 4.5 189.13 173.96 161.10150.07140.50 5.0 200.54183.08168.51156.17145.58 5.5 214.48194.03177.28163.29151.44 6.0 231.91207.42187.79171.71158.28 Discount Rate Growth Rate

22. IBM Recap Target Price of $173 (38% upside) High Margin solutions, Enterprise focus Globally diversified Industry diversified Market Leader

23. Oracle Company Overview World’s largest enterprise software company Began in 1977; was incorporated in 2005 2009 Revenues of $23.3 billion Software and Services Businesses –5 Operating Segments: New Software Licenses Software License Updates and Product Support Consulting On Demand Education

24. Oracle Drivers: GDP

25. Oracle Drivers: CPI

26. Oracle Drivers: Fed Funds Rate

27. Oracle 12 Month Performance

28. Oracle vs. S&P 500

29. Oracle Financial Analysis

30. Oracle Valuation

31. Oracle Company Overview

32. Oracle Sensitivity Analysis

33. Oracle Conclusion Stock is trading at $22.09/share Target price is $30.41 Upside is 37.6% Recommend BUY 91 basis points

34. NCR: Company Overview Number 1 producer of ATMs, retail self- checkout, airline and healthcare self-check in, and paper roll production Headquarters recently moved from Dayton, OH to Deluth, GA 2008 Revenues of 5.315 Billion Main industries include financial, retail, food, health, and travel

35. NCR Pros and Cons Pros: 1) Vertical Integration 2) Global Presence 3) Reputation 4) High Barriers to Entry ($148M R&D) Cons: 1) Entry into DVD Kiosk arena 2) Some fragile markets 3) State of economy (Beta = 1.61) 4) Low EBT ratio

36. Drivers: GDP

37. Drivers: Capital Spending

38. Graph of Stock Performance

39. NCR Financial Analysis

40. NCR Valuation Average Target Price of $11.39/share

42. Sensitivity Analysis Growth Rate Discount Rate

43. NCR Conclusion Stock is trading for $9.67/share My target is $11.90 vs. mean target of $13.76 (upside of 23.06% - 39.55%) Will recover as economy and capital spending improve We have been killed by this stock, but don’t give up on it just yet.

44. Other IT Stocks Considered* CompanySymbolCurrent PriceTarget% Upside NokiaNOK13.2115.7319.08% EMC CorpEMC16.7519.8118.27% CiscoCSCO23.3826.7614.46% Fiserv Inc.FISV46.2952.1412.64% Texas Instruments, Inc.TXN25.2527.569.15% GoogleGOOG579.76632.629.12% * Prices as of 11/29/09

45. IT Sector Recap Sell all MSFT (least upside) Buy IBM +252 bps Buy ORCL +91bps Buy NCR +118 bps