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Technologies : Retour sur le Futur ? Technologies : Retour sur le Futur ? Technologies : Retour sur le Futur ? Technologies : Retour sur le Futur ? FOURPOINTS Funds Info Tech November 4. 2014 Fund Managers: Benot Flamant Twitter:
November 4. 2014
For professional investors only
Twitter: @benoitflamant
Twitter: @lgriffe
An independent company. specialized in global equity investment. owned by its officers and
Active management with a non-benchmarked approach. dedicated to professional investors (institutions. funds of funds. private banks. family offices) The « Philippe Group » a Franco-American group
➤ FOURPOINTS Investment Managers (Paris). authorized by the AMF. and registered by the CSSF in Luxembourg and the SEC in the United States. AUM $1.2 bn for FOURPOINTS IM as of September 30 2014. 21 employees ➤ FOURPOINTS Asset Management (New York) (formerly Philippe Investment Management). SEC registered since 1981. 5 employees ➤ Our assets are invested alongside our clients
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
➤ Our assets are invested alongside our clients
A experienced team in managing money throughout economic cycles. Senior investment team has more than 30 years of experience in the investment management and the whole investment team has been 12 years on average with the group FOURPOINTS is listed among the 50 most important Asset Management companies in France by Funds Magazine
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Microsoft Exchange (email) CRM (Oracle, SAP) Human Capital Management (Oracle, SAP) Travel & Expense Management (Excel) Lotus Notes (IBM) ERP (SAP, Oracle, Sage, Microsoft) Supply Chain Management (SAP) …
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Exc Hu Tra Sag Infrastructure
Microsoft Exchange (email) CRM Human Capital Management Travel & Expense Management Lotus Notes ERP Supply Chain Management …
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Infrastructure
Middleware, OS Database Servers, Storage, Networking, Security ENTERPRISE Applications move to the cloud On-premise infrastructure shrink Business Units decide, not IT anymore No capex, 100% variable costs, CFO loves it SMALL&MEDIUM BUSINESSES Accessing the same application portfolio as Global 2000 Better fit as internal IT resources are scarce
ERP Supply Chain Management … Salesforce.com Workday Concur Technologies ServiceNow
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Infrastructure
Middleware, OS Database Servers, Storage, Networking, Se curity
Cloud software vendors do need an infrastructure and buy from IT vendors but are
ServiceNow …
Enterprise Application Software Market Software Application Infrastructure Market * 2013 ($bn) 128 172 For $1 invested in business software, enterprises need to invest another
Application Development Application Infrastructure and Middleware Data Integration Tools and Data Quality Tools Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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enterprises need to invest another $1.3 in infrastructure software, not counting hardware and IT services to implement and run the software
Data Quality Tools Database Management Systems IT Operations Operating Systems Other Infrastructure Software Security Storage Management
2013 ($bn) CRM 21 ERP 17 Business Intelligence & Analytics 14 Supply Chain Management 9
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Supply Chain Management 9 Human Capital Management 8 Enterprise Content Management 5 Data Integration 4 Project Portfolio Management 2
Source: FOURPOINTS IM, Gartner Group, 2014
* Total Addressable Market (TAM)
MK ($bn) Model portfolio 2013A Sales Annual growth 2014E Sales Annual growth* YTD Perf. Salesforce.com 36 2.0% 33.5% 31.5% +15.9% Workday 16 2.0% 71.4% 63.1% +14.8% ServiceNow 9 2.0% 74.2% 59.7% +21.3% Netsuite 8 2.6% 34.2% 33.4% +5.5% Concur 7 0% 26.8% 27.0% +24.4%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Concur Technologies 7 0% 26.8% 27.0% +24.4% Veeva 4 1.5% 62.2% 43.5% (7.2%) Cornerstone On Demand 2 2.6% 57.0% 45.3% (32.0%) Demandware 2 2.6% 30.5% 42.7% (6.5%) LogMeIn 1 1.5% 19.8% 32.8% +43.2% E2 Open 0.2 1.0%
20.9% (75.6%) Total/Average 17.8% 40.3% 40.0% +0.4%
* Mid range of last guidance available
Source: FOURPOINTS IM, Bloomberg, October 31, 2014
Acquirer Acquired Date Deal size P/S* SAP SuccessFactors 2/2012 $3.4bn 10.4 SAP Ariba 5/2012 $4.3bn 8.2 Oracle Eloqua 12/2012 $2.5bn 8.6
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Oracle Eloqua 12/2012 $2.5bn 8.6 Salesforce.com ExactTarget 7/2013 $2.5bn 8.6 Oracle Responsys 12/2013 $1.5bn 7.5 SAP Concur Technologies 9/2014 $8.3 bn 9.1
* GAAP/IFRS. last reported fiscal year ** P/S TTM
Source: FOURPOINTS IM, October 2014
Application 1 Application 2 Application 3 Application 4 Application 5 Application 6 Application 7 Application 8 ware ware ware ware ware ware ware ware
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Middlewar OS Middlewar OS Middlewar OS Middlewar OS Middlewar OS Middlewar OS Middlewar OS Middlewar OS Virtualized server infrastructure (VMware, Microsoft) Database Networking Storage Security Database Networking Storage Security Database Networking Storage Security Database Networking Storage Security
Application 1 Application 2 Application 3 Application 5 Application 6 Application 7 Application 8 are are are are Application 4
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Middleware OS Middleware OS Middleware OS Middleware OS Amazon Web Services Microsoft Azure Google IBM Softlayer Alibaba Cloud Computing … Software-Defined Data Center = VMware + commodity hardware (server, networking, storage)
Application 1 Application 2 Application 3 Application 5 Application 6 Application 7 Application 8 are are are are Application 4 are are are
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Middleware OS Middleware OS Middleware OS Middleware OS Middleware OS Middleware OS Middleware OS Software-Defined Data Center = VMware + commodity hardware (server, networking, storage) VMware vCloud Air Network T Systems, NTT Communications, SingTel, SoftBank, Rackspace, OVH, KPN…
On-premise infrastructure shrink Only very large enterprises can afford to build their own cloud, for mission-critical strategic applications only No capex, 100% variable costs, CFO loves it Small&Medium businesses and start-ups can now dispose of scalable modern technology Infrastructure Cloud Providers do need an infrastructure but They are way more efficient given their scale
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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They are way more efficient given their scale Their purchasing power is huge They extensively use open source software Some make their own servers, their own storage systems, their
Ultimately, some cloud providers may make their own processor All this is made possible by having huge infrastructure players (Google, Facebook…) reinventing how data centers are designed, built, and managed
2011-2013 2014E Annual TAM $bn TAM $bn Server 55 Infrastructure Software 172 Networking (inc. Security and wireless) 36 Storage Systems 23
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Sales Growth 2011-2013 CAGR 2014E Annual Growth Servers (1.7%) +0.4% Storage Systems +3.0% +0.7% Networking (ex. security and wireless) +4.1% +2.8% Infrastructure Software +7.3% +7.0% And it can only get worse!
Source: FOURPOINTS IM, Gartner Group, 2014
Sales Growth 2011-2013 CAGR 2014 9m vs 2013 9m Cisco Systems (2012 to 2014) +1.1% (4.4%) HP Enterprise (ex. PC, Printers, Services, Financing) (4.0%) (0.2%) IBM (ex. Services, Financing) (4.2%) (7.1%)
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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EMC Storage +4.6% +1.3% Oracle (2012 to 2014) +1.5% +2.8%
Source: FOURPOINTS IM, Bloomberg, Companies, October 2014
6/2012 6/2014 CAGR Commercial
$41.8bn 83.9% 12.5% $49.6bn 81.6% 15.2% +8.9% +7.5%
$32.4bn $37.7bn +7.9%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
The Good: Microsoft has decided it is better to cannibalize itself rather than being cannibalized by others; it is now a top cloud provider (even if Office is accounted as « Cloud ») The Bad: the negative impact of the Cloud in terms of margins The Ugly: the handset division (ex. Nokia)
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$32.4bn 67.0% $37.7bn 52.9% +7.9% (4.2%) Total
$73.7bn 76.2% $86.8bn 69.0% +8.5% +3.2%
* Other: Azure and others
Source: FOURPOINTS IM, Bloomberg, Company, October 2014
Legacy Infrastructure vendors YTD Perf. IBM
(12.4%)
HP
+28.2%
Cisco Systems
+9.1%
Cloud vendors YTD Perf. VMware
(6.8%)
Red Hat
+5.1%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Cisco Systems
+9.1%
EMC
+14.2%
Oracle
+2.1%
Microsoft
+25.5%
Amazon.com
(23.4%)
+1.2%
Informatica
(14.1%)
Average
(7.6%)
Source: FOURPOINTS IM, Bloomberg, local currency, as of October 31, 2014
300 310 320 330 340 350 360 370 2011 2012 2013 2014E in M units
PC units sold worldwide
70 120 170 220 270 2011 2012 2013 2014E in M units
Tablet units sold worldwide
Intel: 80% of PC market share 2014E Intel: 17% of tablet market share 2014E
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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2011 2012 2013 2014E 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 2011 2012 2013 2014E in M units
Smartphone units sold worldwide
Sources: FOURPOINTS IM, Gartner, IDC , September 2014
Intel: 1% of smartphone market share 2014E
ARM-based alternatives ramping up Slow market growth Too expensive XP upgrade cycle is a one-time event ARM-based chip inside a big iPad and/or in a Mac? Windows 10 ARM- and Intel-agnostic
PC Serveur
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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404
1
200 400 600 in M$
Intel Mobility Communication Group
Sales Operating loss
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Q1 2013 Q3 2014
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Source: FOURPOINTS IM, Company, October 2014
Q3 2014 Mobile & Communications Group: Sales "consistent with expectations"…
Legacy PC players YTD Perf. Intel
+31.0%
HP
+28.2%
Mobility players YTD Perf. ARM
(20.4%)
Qualcomm
+5.7%
Mediatek
(2.4%)
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Microsoft
+25.5%
Lenovo
+21.1%
Acer
+13.9%
Asustek
+15.7%
Mediatek
(2.4%)
+1.2%
Apple
+34.8%
Average
+3.8%
Sources: FOURPOINTS IM, Bloomberg, in local currency, October 31, 2014
Semiconductor Design/IP Chipset Companies
Food Chain Players Growth
Foundries Mobile Device Companies Mobile Carriers Mobile Services
TSMC (50%), Samsung, Intel, AT&T, Verizon, Vodafone, China Samsung, App le, General services Google, Baidu, ARM (95%) Imagination, Processing Qualcomm,
Barriers to Entry
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Players
Samsung, Intel, GlobalFoundries, UMC, SMIC AT&T, Verizon, Vodafone, China Mobile, Orange, Telefonica, Deutsche Telekom, NTT, American Movil, O2, Etisalat… le, Xiaomi, HTC, Lenovo, Huawei, ZTE, Sony, LGE, Alcatel, Micromax, Microsoft, white brands... Google, Baidu, Yandex, Yahoo Social Facebook, Tencent, Twitter, eCommerce eBay, Amazon, Alibaba, OpenTable Music Pandora, Spotify Video Netflix, Youtube, Amazon Sharing economy Uber, AirBnb Games Gameloft, King Imagination, Ceva, Vivante Qualcomm, Mediatek, Intel, Nvidia, Marvell, Spreadtrum/RDA Rockchip, Allwinner In-House Processing Samsung, Apple, Huawei Power Dialog, Maxim Analog Skyworks, Texas Instrument, STM
Source: FOURPOINTS IM
2013 Media advertising spending breakdown (total of $503bn in 2013)
30% 41% 100% 48% 42% 110% 40% 60% 80% 100% 120%
Average time spent per day per media by US Adult
2010 2013
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source: FOURPOINTS IM, eMarketer, ZenithOptimedia, 2014
21% 79%
Digital Advertising 15% 8% 7% 13% 5% 2% 0% 20%
Digital TV Radio Print Other Total
Before Today
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Mass Media No personalisation Mass advertising Personalized radio stations Huge and diversified content Real-time adaptation to the user taste The more you listen, the more the content will be relevant Stickiness Ubiquity User friendly Targeted advertising
Pandora US radio usage share
5 6 7 8 9 10 in %
Pandora’s Internet radio market share: 78% as of Q3 2014
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Pandora radio advertsing share
1 2 3 4 5 2011 2012 2013 2014E in %
Local ad market: 82% of the total US radio advertising market, only 22% of Pandora ad revenue
Sources: FOURPOINTS IM, Pandora Radio, October 31, 2014
New Advertising players YTD Perf. Pandora
(27.5%)
+1.2%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Amazon
(23.4%)
+37.2%
Average
(3.1%)
Sources: FOURPOINTS IM, Bloomberg, in local currency, October 31, 2014
Calendar Year (USD)
2008 2009 2010 2011 2012 2013 2014E
Average sales growth of companies in the portfolio
+15.8% +9.8% +29.9% +29.1% +23.5% +23.7% +26.6%
Average sales growth of companies in the MSCI
+3.7%
+24.6% +7.5%
+3.9%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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companies in the MSCI IT World
+3.7%
+24.6% +7.5%
+3.9%
Average EPS growth of companies in the portfolio*
+3.3% +27.0% +49.3% +23.6% +16.6% +19.5% +58.8%
Average EPS growth of companies in the MSCI IT World
+11.1%
+176.3% +17.5%
+4.9% +13.8%
* Excluding non-meaningful EPS companies Source: FOURPOINTS IM, Based on Info Tech’s portfolio as of October 31, Factset, October 31, 2014,
USD CAGR EURO CAGR FOURPOINTS FUNDS Info Tech
148.6% 20.0% 155.2% 20.6%
MSCI IT World*
131.3% 18.3% 137.4% 18.9%
MSCI IT World ex. Apple
107.6% 15.7% 113.1% 16.3%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
MSCI IT World ex. Apple
107.6% 15.7% 113.1% 16.3%
S&P 500 NTR
120.9% 17.2% 122.6% 17.4%
MSCI World All Countries NTR
100.4% 14.9% 105.6% 15.5%
EuroStoxx 600 NTR
87.9% 13.4% 92.8% 14.0%
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Source: FOURPOINTS FUNDS Info Tech Class I *NTR since 1.1.2013
USD EURO FOURPOINTS FUNDS Info Tech +0.1% +10.1% MSCI IT World +12.4% +23.6% S&P 500 +10.4% +21.5%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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S&P 500 +10.4% +21.5% MSCI World All Countries +4.5% +14.9% EuroStoxx 600 (4.4%) +5.2% Nikkei 225 (4.4%) +5.1% Russell 2000 +1.9% +12.1%
All indices performance include net dividend Source : Bloomberg, FOURPOINTS FUNDS Info Tech, as of October 31, 2014
57.5% 6.5% 9.2% 0.1% Mid cap ($1bn to $10bn) Small cap (<$1bn) MSCI World IT
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source : Factset, FOURPOINTS FUNDS Info Tech, as of October 31, 2014 17.0% 19.0% 64.7% 26.0% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Mega cap (>$50bn) Large cap ($10bn to $50bn) FP Funds InfoTech
112.31 101.90 105 110 115 MSCI IT WORLD Russell 2000 Fourpoints Funds Info Tech
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source : Bloomberg, in USD, FOURPOINTS Funds Info Tech USD share, as of October 31, 2014 101.90 99.80 90 95 100
2.6%
MID ($1bn-$10bn) SMALL (<$1bn)
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source : FOURPOINTS FUNDS Info Tech, in USD, as of October 31,2014 1.4%
0% 1% 2% 3% XL (>$50bn) LARGE ($10bn-$50bn)
USD Index Weight Contribution to Performance Contribution to MSCI IT World
YTD Perf. Apple 15.2% 4.6 37.6% +34.8% Microsoft 8.6% 2.1 16.7% +25.5%
Top 5 = 70% of the Index YTD performance
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Microsoft 8.6% 2.1 16.7% +25.5% Intel 4.0% 1.1 8.8% +31.0% HP 1.6% 0.4 3.5% +28.2% Cisco 2.9% 0.4 3.2% +9.1% Others 67.7% 3.7 30.2% N.A.
Source: Factset, as of October 31, 2014
The Correction Everybody Expected Took Place but for Megacaps US USD 2014 Drawdown YTD Perf. S&P 500 (7.3%) +10.4% MSCI IT World (8.7%) +12.4% Russell 2000 (12.5%) +1.9% EuroStoxx 600 (15.9%) (4.4%)
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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EuroStoxx 600 (15.9%) (4.4%) Nikkei 225 (11.3%) (4.4%) MSCI World AC (9.2%) +4.5%
Source: FOURPOINTS IM, Bloomberg, indices performance net dividends included, as of October 31, 2014
31.0% 25.5% 28.2% 34.8%
Yield (Dividend+Buy backs) YTD Performance
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Sources: FOURPOINTS IM, Bloomberg, Factset, in local currency, as of October 31, 2014 Yield over trailing twelve months 4.7% 4.3% 5.2% 6.1% 7.7% 10.2% 3.2% 13.1% 9.1% 9.2% Intel Microsoft HP Texas Instrument Apple Cisco S&P500 NTR Est.
themes
themes; yet, it has a mid cap bias
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
US mega caps, multiple compression, and a search for yield
mega caps make us very confident for the coming quarters
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Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Sales Growth in 2014 Weight Moderate growth (0-10%) 21.9% Strong growth (10-25%) 43.1%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Strong growth (10-25%) 43.1% High growth (25%+) 30.7%
Source : FOURPOINTS FUNDS Info Tech, as of October 31, 2014
3.8% 3.8% 1.5% 3.1% 5.0% 4.9% 4.6% Bermuda Canada China France
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source : FOURPOINTS FUNDS Info Tech, as of October 31, 2014 4.6% 73.3% France Israel Taiwan United Kingdom United States
Category Weight Enterprise SaaS 19.8% Digital Economy 19.3%
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Enterprise Other 24.9% Enterprise Infra. 13.6% Mobility 18.1%
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Source: FOURPOINTS FUNDS Info Tech, as of October 31, 2014
1
Akamai
Enterprise Other
1
Splunk*
Enterprise Other
2
F5 Networks
Enterprise Infra
2
Avigilon
Enterprise Other
3 Dialog Semiconductor
Mobility
3
Cornerstone OnDemand
Enterprise SaaS
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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* Company no longer in the portfolio Source: FactSet, FOURPOINTS FUNDS Info Tech, as of October 31, 2014
OnDemand
4
ServiceNow
Enterprise SaaS
4
Pandora Radio
Digital Economy
5
Apple
Mobility
5
E2Open
Enterprise SaaS
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Source: FOURPOINTS FUNDS Info Tech, as of October 31, 2014
FOURPOINTS Funds Info Tech SICAV (UCITS IV)
Registration: Luxembourg. UK. Switzerland. Italy. Spain. Germany. Austria. Belgium. France Fiscal transparency: Germany. Belgium. Austria. UK Investment Manager: FOURPOINTS Investment Managers Management company: Degroof Gestion Institutionnelle Currency: EUR Valuation: Daily Custodian: Banque Degroof Luxembourg Auditor: KPMG ISIN Codes and Bloomberg ticker: Share R: LU0127700903 (accumulation) / ITTEGLI LX Share I: LU0100548261 (accumulation) / ITTEGLO LX
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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Share I: LU0100548261 (accumulation) / ITTEGLO LX Share USD: LU0620567890 (accumulation) / ITTEUSD LX Share D: LU0180672007 (distribution) / ITTEGLU LX Share RH: LU0288052094 (accumulation) / ITTGBAL LX ISIN Codes and Bloomberg ticker: EUR Share Class – hedged for USD/EUR currency exposure Share RH: LU0288052094 (accumulation) / ITTGBAL LX Management Fees: Part R / RH: 2.20% Part I / USD: 1.20% Part D: 1.00% Cut-off: 4 pm Luxembourg time Out of scope
Portfolio Manager & Analyst Technologies Equity 10-year experience in asset
Deputy CIO 18-year experience in asset management
2012 – Present: Head of Tech Investments of FOURPOINTS IM (merger of PIM Gestion France and IT Asset Management) 1996 – 2012 : Managing director, CIO and cofounder of IT Asset Management 1988 – 1996 : IBM and Microsoft, marketing director 1985 – 1987 : ADI/GSI Software Engineer Ecole Centrale de Paris 2012 – Present: FOURPOINTS IM (merger of ITAM and PIM Gestion France ), co-manager of Tech funds 2007 – 2012: ITAM, based in Paris, portfolio manager for the info tech funds 2004 – 2006: Associate in venture capital, VPSA, Paris. 2003 – 2004: Analyst in capital risk, Siparex, Paris. 2000 – 2002: Associate in M&A, Arthur Andersen Corporate Finance in Paris. Specialized Master’s in Strategy and Management of International Business at ESSEC
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Portfolio Manager &
9 -year experience in asset management
Analyst 1-year experience in asset management management
2014: co-manager with Beatrice Philippe of the US Equity startegy 2011 – Present - FOURPOINTS AM (NY): Louiza is a Global Equities analyst 2009 – 2011 : Taum Sauk Capital Management (New York), analyst 2005 – 2009 : AllianceBernstein, (New York), analyst DESCF, Université Paris IX Dauphine. Master en Finance d’entreprise, ESCP, Paris - France Specialized Master’s in Strategy and Management of International Business at ESSEC Business School and Master Degree in Competitive Intelligence. 2014: Analyst at FOURPOINTS IM Graduated form a Master in Financial Techniques at ESSEC, a Master in Audit & Financial Advisory at Paris Dauphine and from a Master in Information Systems at TELECOM & Management
California, Irvine. After an internship as an auditor at Deloitte, Anthony Carvalho joined FOURPOINTS IM in 2013 as an analyst with a focus on the European and technology sectors.
Michel Raud Deputy Managing Director – Co-CIO 42-year experience in asset management Béatrice Philippe President – Co-CIO 42-year experience in asset management
2012- Present: President FOURPOINTS AM and FOURPOINTS IM (merger of PIM Gestion France and IT Asset Management) 1973 – 2012 : President – Co-CIO of Philippe Group (PIM Gestion France and Philippe Investment Management) 1972 – 1973 : Business International, Paris MBA Finance HECJF<, Paris / Stanford’s Graduate School of Business Summer Program /Councillor of French American Chamber of commerce/ Member of council of Rockefeller University 2012 – Present: Co-CIO, Deputy Managing Director FOURPOINTS IM (merger of PIM Gestion France and IT Asset Management) 1988 – 2012: Co-CIO, Managing director of Philippe Group (PIM Gestion France and Philippe Investment Management) 1987 – 1988 : Banque Financière CARDIF – Director 1972 – 1987 : Nivard Flornoy stockbroker – Director research on French equities MBA HEC, Paris / Member of SFAF
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
46 Julien Chehowah Analyst, Global Equities 6-year experience in asset management Eric Fourrier Portfolio Manager & Analyst 13-year experience in asset management Marie de Mestier Portfolio Manager & Analyst 8-year experience in asset management Emmanuelle Ferreira Portfolio Manager & Analyst 12-year experience in asset management
Member of council of Rockefeller University MBA HEC, Paris / Member of SFAF
Julien Mathou
Disclaimer: This document does not constitute or form part of an offer to issue or sell, or of a solicitation of an offer to subscribe or buy, any securities nor does it constitute a financial promotion, investment advice or an inducement to participate in any product, offering or investment. The expectations expressed about the stocks, the market, the economy and other factors represent the opinion of the manager and may not be realised in the future. Performance is presented for a specific
index in any particular period.
Stéphane Lenique Ines Cointet
Contacts
Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment. Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Julien Mathou
Business Relationship Manager jmathou@fourpointsim.com +33(0)1 70 77 07 78 FOURPOINTS IM 13/15, rue de La Baume 75008 Paris – France Téléphone: +33 (1) 40 28 16 50 www.fourpointsim.com
Stéphane Lenique
Head of Development Europe slenique@fourpointsim.com +33 (0)1 70 75 10 73
Ines Cointet
Sales Manager France icointet@fourpointsim.com +33 (0)1 70 75 10 84
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Muriel Faure
Chief Executive Officer mfaure@fourpointsim.com +33 (0)1 40 28 16 50